Continued growth and improving profitability January 28, 2014, - - PowerPoint PPT Presentation

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Continued growth and improving profitability January 28, 2014, - - PowerPoint PPT Presentation

May 14, 2023 178 likes •470 views

AMER SPORTS 2013 Continued growth and improving profitability January 28, 2014, Heikki Takala, President and CEO Q4: strong double-digit growth, improved profitability Net sales EUR 657.4 million (618.5), +12% in local currencies -

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SLIDE 1

AMER SPORTS 2013 Continued growth and improving profitability

January 28, 2014, Heikki Takala, President and CEO

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SLIDE 2

Amer Sports Financial Statements

  • Net sales EUR 657.4 million (618.5), +12% in local currencies
  • Footwear +25%, Apparel +21%, Sports Instruments +18%, Fitness +16%,

Winter Sports Equipment +8%, Ball Sports +5%, Cycling 0%

  • EMEA +13%, Americas +8%, APAC +19%
  • B2C +27%, Emerging markets +17%
  • Gross margin 42.0% (41.9%)
  • EBIT EUR 64.7 million (47.0 excl. NRI ), driven by increased sales

volumes

  • EBIT margin 9.8% (7.6% excl. NRI)
  • Net cash flow EUR 143.9 million (96.7), driven by decreased working

capital

Q4: strong double-digit growth, improved profitability

In local currencies

2

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SLIDE 3

Amer Sports Financial Statements

  • Record net sales EUR 2,136.5 million (2,064.0), +8% in local currencies
  • Apparel +21%, Sports Instruments +17%, Fitness +13%, Footwear +11%
  • Winter Sports Equipment 3%, Ball Sports +1%, Cycling +1%
  • EMEA +8%, Americas +5%, APAC +15%
  • B2C +32%, Emerging markets growth +21%
  • Gross margin 43.6% (43.6%): last year level safeguarded despite

increased air freight and currency headwinds

  • EBIT EUR 154.9 million (138.7 excl. NRI), EBIT margin 7.3% (6.7% excl.

NRI)

  • Driven by increased sales volumes
  • OPEX 37.0% (37.7%). Strategic OPEX investments continued
  • Dividend proposal EUR 0.40 per share (0.35)

2013: broad-based and profitable growth

3

In local currencies

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SLIDE 4

Amer Sports Financial Statements

Record sales improved profitability

EUR million 2013 2012 Ch % Ch %* Net sales 2,136.5 2,064.0 4 8 Gross profit 932.2 900.6 4 7 Gross profit, % of net sales 43.6 43.6 EBIT excluding non-recurring items 154.9 138.7 12 EBIT % excluding non-recurring items 7.3 6.7 Non-recurring items 0.0

  • 24.8

EBIT total 154.9 113.9 36 Net cash flow after investing activities 42.5 71.8

*) In local currencies

4

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SLIDE 5

Amer Sports Financial Statements

  • Operating expenses increased by EUR 41 million in local currencies
  • Continuous investments into future growth with focus on softgoods, sales

coverage, emerging markets and business to consumers

  • Restructuring continued, impacts maintenance OPEX

Continuous investments into future growth

EUR million 2013 2012 2011 Topline driven OPEX increase 22.5 10.3 19.1 Investment OPEX increase 20.9 31.9 26.1 Maintenance OPEX increase

  • 2.3

10.9 3.7 Total increase in OPEX 41.1 53.1 48.9

In local currencies

5

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SLIDE 6

Amer Sports Financial Statements

Balance sheet remains healthy EUR million

  • Dec. 31, 2013
  • Dec. 31, 2012

Net debt 431.7 434.3 Shareholders’ equity 761.3 731.8 Capital employed 1,193.0 1,166.1 Working capital 457.2 400.1 Net debt / EBITDA, excluding non-recurring items 2.2 2.4 Gearing, % 57 59 Equity ratio, % 37.5 39.1

6

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SLIDE 7

Amer Sports Financial Statements

Strong cash flow in Q4

  • 150
  • 100
  • 50

50 100 150

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 MEUR

7

H2: EUR -41m H2: EUR +19m H2: EUR +25m

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SLIDE 8

Amer Sports Financial Statements

No significant mid-term refinancing needs

8

  • Cash EUR 270.0 million and

unused committed facilities EUR 240 million (December 31, 2013)

  • Commercial paper program

EUR 500 million, of which EUR 119.6 million issued

  • Scheduled long-term

payments in 2014 EUR 62.5 million and in 2015 EUR 157.4 million

  • Average interest rate of the

loan portfolio is 3.5% (3.6)

0m 25m 50m 75m 100m 125m 150m 175m 200m 225m 2014 2015 2016 2017 2018=>

Pension Loan Bonds Bank loans Commercial Papers Other

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SLIDE 9

Amer Sports Financial Statements

Summary: progress vs. financial targets

9

TARGET 2009 2010 2011 2012 2013

Growth Organic FX-neutral 5% annual growth

  • 6%

8% 9% 5% 8% Profitability EBIT of at least 10%

  • f net sales

3.2% 6.2% 7.2% 6.7% 7.3% Cash Flow Annual free cash flow equal to net profit 4.5X 0.7X -0.2X 0.9X 0.5X Balance Sheet Net Debt/EBITDA ratio at or below 3X 3.6X 2.2X 2.3X 2.4X 2.2X

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SLIDE 10

OUTLOOK

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SLIDE 11

Amer Sports Financial Statements

  • Amer Sports expects global trading conditions to remain

challenging, with some regional improvements.

  • In 2014, Amer Sports’ net sales growth in local currencies is

expected to meet at minimum the company’s long-term annual 5% growth target and EBIT excluding non-recurring items is expected to improve from 2013.

  • The company will continue to focus on softgoods growth,

consumer-driven product and marketing innovation, commercial expansion and operational excellence.

Outlook for 2014

11

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SLIDE 12

WE CONTINUE MOVING

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SLIDE 13

Amer Sports Financial Statements

  • Majority of businesses improving according to their portfolio role,

driving scale and synergies

  • Strong growth in softgoods (EUR 715 million), emerging markets, B2C, etc.
  • Winter Sports Equipment: increasingly sustainable model
  • Sports Instruments and Fitness turnaround continued
  • Now major focus on improving Ball Sports and realizing further portfolio

synergies

  • Our consumer marketing and product innovation pipeline increasingly

focused on “surrounding the consumer” with head-to-toe solutions

  • Continuous improvement in Go to Market: distribution quantity and

quality, good progress on B2C

  • All operations improving their KPIs

We continue to make solid progress in

  • ur strategic priorities

13

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SLIDE 14

Amer Sports Financial Statements

Clarify future direction & deliver the year Repeatable business model Build critical capabilities, allocate resources and reignite growth

  • Clarify priorities, set

direction

  • Continue to drive profit

recovery, deliver the year

  • Continue the work on
  • perational efficiency &

margins improvement

  • Build capabilities:
  • Softgoods
  • Category based development
  • Go to market
  • Drive organic growth:

softgoods, Russia, China, BtoC, etc.

  • Operational excellence, WSE

efficiency & profitability

  • Grow the core
  • Hardgoods
  • Big countries
  • Add more
  • Softgoods
  • Emerging markets
  • Own retail
  • Learn for future
  • Next growth categories

(accessories, action sports, Digital) ~2010 ~2011...2012 ~2013-

Prioritized, sequenced program

14

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SLIDE 15
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SLIDE 16

APPENDIX

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SLIDE 17

Amer Sports Financial Statements

Net sales and EBIT breakdown (MEUR)

17

NET SALES 2013 Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 2012 Q4/ 2012 Q3/ 2012 Q2/ 2012 Q1/ 2012 Winter and Outdoor 1,289.5 433.7 420.6 168.7 266.5 1,221.2 402.8 411.0 150.9 256.5 Ball Sports 551.0 126.1 116.7 144.2 164.0 569.7 127.7 121.9 146.5 173.6 Fitness 296.0 97.6 71.6 64.3 62.5 273.1 88.0 69.0 56.4 59.7 Total 2,136.5 657.4 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 EBIT 2013 Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 2012* Q4/ 2012* Q3/ 2012 Q2/ 2012 Q1/ 2012 Winter and Outdoor 127.0 52.5 87.4

  • 27.1

14.2 113.8 41.7 86.8

  • 25.4

10.7 Ball Sports 27.0 3.9

  • 2.1

7.8 17.4 28.0 1.0

  • 2.6

9.7 19.9 Fitness 24.4 14.3 6.2 4.3

  • 0.4

17.0 7.9 4.2 1.0 3.9 Headquarters

  • 23.5
  • 6.0
  • 9.0
  • 3.7
  • 4.8
  • 20,1
  • 3.6
  • 7.1
  • 4.5
  • 4.9

Total 154.9 64.7 82.5

  • 18.7

26.4 138.7 47.0 81.3

  • 19.2

29.6 * Excluding non-recurring items

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SLIDE 18

Amer Sports Financial Statements

Business area net sales in Q4 and 2013

MEUR Q4/ 2013 Q4/ 2012 Ch % Ch %* 2013 2012 Ch % Ch %* Winter Sports Equipment 208.6 203.2 3 8 416.7 425.0

  • 2

3 Footwear 73.4 60.7 21 25 341.2 314.4 9 11 Apparel 86.9 77.0 13 21 285.4 248.6 15 21 Cycling 30.8 31.8

  • 3

128.2 129.0

  • 1

1 Sports Instruments 34.0 30.1 13 18 118.0 104.2 13 17 Individual Ball Sports 59.7 61.8

  • 3

3 306.0 318.8

  • 4

Team Sports 66.4 65.9 1 7 245.0 250.9

  • 2

1 Fitness 97.6 88.0 11 16 296.0 273.1 8 13 Total 657.4 618.5 6 12 2,136.5 2,064.0 4 8

18

* In local currencies

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SLIDE 19

Amer Sports Financial Statements

Net sales +10+%

  • Apparel +21%. Both Salomon and Arc’teryx grew
  • Sports Instruments +17% driven by the Suunto Ambit product family and market expansion
  • Footwear +11%. All product segment and regions grew, strong growth in US
  • Winter Sports Equipment +3%. Strong growth in alpine boots and cross country
  • Cycling +1%, softgoods +14%

EBIT was EUR 127.0 million (113.8, excl. NRI)

  • Increased sales volumes
  • Increased operating expenses due to sales and distribution costs

Winter and Outdoor in 2013 (2012)

19 50 100 150 200 250 300 350 400 450 500

Net sales

  • 40
  • 20

20 40 60 80 100

EBIT excluding non-recurring items

MEUR MEUR

416.5 45.0 61.2 Q4/10 Q4/11 Q4/10 Q4/11 Q4/12 375.0 Q4/12 402.8 41.7 Q4/13 433.7 Q4/13 52.5

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SLIDE 20

Amer Sports Financial Statements

Net sales remained at previous year’s level

  • Americas and EMEA flat, 6% growth in APAC
  • Individual Ball Sports 0%. Tennis rackets flat, growth in tennis balls
  • Team Sports +1%. Baseball trade conditions normalized

EBIT was EUR 27.0 million (28.0 excl. NRI)

Ball Sports 2013 (2012)

20 20 40 60 80 100 120 140 160 180

Net sales

  • 5

5 10 15 20 25

EBIT exluding non-recurring items

MEUR MEUR

107.3

  • 2.7

Q4/10 Q4/10 Q4/11 109.0 Q4/11

  • 0.7

Q4/12 Q4/12 127.7 1.0 Q4/13 126.1 Q4/13 3.9

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SLIDE 21

Amer Sports Financial Statements

Net sales +13%

  • EMEA +14%, the Americas +8%, APAC +39%

EBIT was EUR 24.4 million (17.0 excl. NRI)

  • Increased sales volumes and improved gross margins were partly offset by

higher operating expenses due to sales and distribution costs

Fitness 2013 (2012)

21

20 40 60 80 100 120

Net sales

  • 6
  • 4
  • 2

2 4 6 8 10 12 14 16

EBIT excluding non-recurring items

MEUR MEUR

59.6 4.3 4.5 Q4/10 Q4/10 Q4/11 72.9 Q4/11 Q4/12 Q4/12 88.0 7.9 Q4/13 97.6 14.3 Q4/13

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Amer Sports Financial Statements

Foreign currency translation difference

22

EUR million 2013 2012 Business Area Reported Reported Local Currency Translation Difference Winter Sports Equipment 416.7 425.0 404.9

  • 20.1

Footwear 341.2 314.4 308.2

  • 6.2

Apparel 285.4 248.5 235.3

  • 13.2

Cycling 128.3 129.0 126.8

  • 2.1

Sports Instruments 118.1 104.2 100.7

  • 3.6

Winter & Outdoor 1,289.5 1,221.2 1,176.0

  • 45.2

Individual Ball Sports 306.0 318.8 306.0

  • 12.8

Team Sports 245.0 250.9 241.7

  • 9.2

Ball Sports 551.0 569.7 547.7

  • 22.0

Fitness 296.0 273.1 262.7

  • 10.5

Total 2,136.5 2,064.0 1,986.3

  • 77.7
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SLIDE 23

Amer Sports Financial Statements

Net sales by region (MEUR)

MEUR 2013 Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 2012 Q4/ 2012 Q3/ 2012 Q2/ 2012 Q1/ 2012 EMEA 1,025.2 338.6 301.6 144.5 240.5 962.7 305.3 297.6 133.1 226.7 Americas 839.4 229.3 237.2 177.6 195.3 834.1 224.8 236.2 167.4 205.7 Asia Pacific 271.9 89.5 70.1 55.1 57.2 267.2 88.4 68.1 53.3 57.4 Total 2,136.5 657.4 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8

23

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Amer Sports Financial Statements

Sales development by region

24

39 % 48 % 13 %

Sales development by region in 2013

Winter and Outdoor Ball Sports Fitness Total

1,289.5

65 % 21 % 14 %

551.0 296.0 2,136.5

Americas EMEA Asia Pacific 23 % 65 % 12 %

EMEA Americas Asia Pacific Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Winter and Outdoor 830.3 9 300.0 9 159.2 15 1,289.5 10 Ball Sports 116.8 356.8 77.4 6 551.0 1 Fitness 78.2 14 182.6 8 35.2 39 296.0 13 Total 1,025.2 8 839.4 5 271.9 15 2,136.5 8 62 % 26 % 12 %

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Amer Sports Financial Statements

Balance sheet

MEUR

  • Dec. 31, 2013
  • Dec. 31, 2012

Goodwill and other intangible non-current assets 486.2 500.5 Tangible non-current assets and other non-current assets 269.5 282.8 Inventories and work in progress 355.1 336.7 Receivables 649.1 607.8 Cash and cash equivalents 270.0 142.5 Shareholders’ equity 761.3 731.8 Interest bearing liabilities 701.7 576.8

  • Long-term

517.9 378.2

  • Current

183.8 198.6 Other liabilities 566.9 561.7 Total 2,029.9 1,870.3

25

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SLIDE 26

Amer Sports Financial Statements

  • Heikki Takala, President and CEO, tel. +358 9 7257 8210
  • Jussi Siitonen, CFO, tel. +358 9 7257 8212
  • Samppa Seppälä, Corporate Communications and IR,
  • tel. +358 9 7257 8233
  • www.amersports.com

Contact information

26

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SLIDE 27

www.amersports.com

Disclaimer Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Amer Sports assumes no responsibility to update any of the forward-looking statements contained herein. No representation or warranty, express or implied, is made or given by or on behalf of Amer Sports or its employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.

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