full year confirmed July 27, 2017 Heikki Takala, President and CEO - - PowerPoint PPT Presentation

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full year confirmed July 27, 2017 Heikki Takala, President and CEO - - PowerPoint PPT Presentation

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Amer Sports Q2/2017 H1 largely in line with plan, H2 improvement in sight, full year confirmed July 27, 2017 Heikki Takala, President and CEO Context Consumer demand for our brands continues to be high. Q2 growth from own Direct to

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SLIDE 1

Amer Sports Q2/2017

H1 largely in line with plan, H2 improvement in sight, full year confirmed

July 27, 2017 – Heikki Takala, President and CEO

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SLIDE 2

Context

  • Consumer demand for our brands continues to be high.
  • Q2 growth from own Direct to Consumer and 3rd party online sales.
  • Traditional wholesale down vs. a year ago especially in the US,

partially due to the declined store footprint following the 2016 retailer bankruptcies.

  • Trading conditions gradually improving, indicated by strengthening
  • rder positions.
  • Our own initiative pipeline is robust, supported by company

transformation.

  • We prioritize profitable growth, and continue to drive productivity,

enabled by ongoing restructuring.

27 July 2017 2 Amer Sports Interim Report Presentation

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SLIDE 3

Q2: Strong growth in strategic priority areas

  • Net sales EUR 487.3 million (477.4), up by 2%, in local currencies +1%

– Apparel +22%, own retail +25% (same store growth +7%), e-commerce +45%, China +20%

  • Gross margin 44.5% (44.7)
  • Opex up by EUR 12 million driven by investments into transformation
  • EBIT excl. IAC EUR -24.8 million (-12.1)
  • Free cash flow positive at EUR 7.0 million (-54.3)

27 July 2017 Amer Sports Interim Report Presentation 3

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SLIDE 4

27 July 2017 Amer Sports Interim Report Presentation 4

  • 40
  • 20

20 40 60 80 100 120

EBIT excluding items affecting comparability

100 200 300 400 500 600

Net sales

Outdoor Q2/2017 (Q2/2016)

27 July 2017 4

MEUR MEUR

  • 27.1

Q2/13 Q2/17 Q2/14 168.7 Q2/13

  • 22.0

Q2/15 174.8 Q2/14

Net sales EUR 238.3 million, +3%*

  • Apparel +22% driven by Arc’teryx
  • Footwear +2%, impacted by global distribution consolidation and volatility in

Latin America

  • Mavic sales impacted by high OEM and retail inventories. ENVE +26%
  • Sports Instruments +7% due to Spartan multisport watches

EBIT excl. IAC EUR -31.1 million (-16.0)

Q2/16 209.7 Q2/15

  • 18.7

Q2/17 231.0 Q2/16

  • 16.0

238.3

  • 31.1

*In local currencies

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SLIDE 5
  • 5

5 10 15 20 25

EBIT excluding items affecting comparability

Ball Sports Q2/2017 (Q2/2016)

Net sales EUR 167.5 million, at previous year’s level*

  • US wholesale market soft; baseball de-stocking ahead of changes in bat

regulations in early 2018 EBIT excl. IAC EUR 9.0 million (7.7)

27 July 2017 Amer Sports Interim Report Presentation 5 27 July 2017 5

MEUR

Q2/17 Q2/13 Q2/14 9.0 Q2/15 6.3 7.8 11.3 Q2/16

20 40 60 80 100 120 140 160 180 200

Net sales

MEUR

Q2/17 136.2 Q2/13 Q2/14 169.4 144.2 Q2/15 Q2/16 165.5 7.7 167.5

*In local currencies

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SLIDE 6

Fitness Q2/2017 (Q2/2016)

Net sales EUR 81.5 million, +1%*

  • Growth unevenly split between the quarters, order book has continued to

strengthen EBIT excl. IAC EUR 2.5 million (4.5)

27 July 2017 Amer Sports Interim Report Presentation 6 27 July 2017 6

20 40 60 80 100 120 140

Net sales

MEUR

Q2/17 Q2/17 64.3 Q2/13 Q2/13 Q2/14 Q2/15 65.1 Q2/14 82.0 Q2/15 Q2/16 80.9 Q2/16

  • 5

5 10 15 20

EBIT excluding items affecting comparability

4.3 2.5 4.1 5.1 4.5 81.5

*In local currencies

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SLIDE 7

H1 in a nutshell

  • Net sales EUR 1,148.9 million (1,112.9), up by 3%, in local currencies

+2%

– Apparel +17%, own retail +22% (same store growth +7%), e-commerce +45%, China +13%

  • Gross margin 44.9% (46.3) due to less favorable hedges
  • EBIT excl. IAC EUR 13.4 million (33.9)
  • Free cash flow EUR 60.9 million (-21.5)

27 July 2017 Amer Sports Interim Report Presentation 7

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SLIDE 8

In H1, we continued the company transformation

  • Opex EUR +14 million: topline driven EUR +6 million, investment
  • pex EUR +16 million (of which amortization EUR 8 million),

maintenance EUR -8 million. Main investment areas: – New retail stores, e-commerce expansion – Building the consumer database – Strengthening capabilities in e-commerce, own retail, and digital consumer engagement

  • EMEA and North-American Go to Market omni-channel

re-organization completed

27 July 2017 Amer Sports Interim Report Presentation 8

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Transformation investment increasingly enabled by maintenance cost reduction

27 July 2017 Amer Sports Interim Report Presentation 9

21 16 34 29 21 6 36 22

  • 2
  • 8
  • 5
  • 11

14

Investment driven

H1-16 66 FY-16

Maintenance driven

H1-17

Topline driven

LTM June’17 40 40

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SLIDE 10

Balance sheet

27 July 2017 Amer Sports Interim Report Presentation 10

EUR million June 30, 2017 June 30, 2016

  • Dec. 31,

2016 Net debt 584.4 599.9 535.9 Shareholders’ equity 840.5 858.2 1,003.1 Capital employed 1,424.9 1,458.1 1,539.1 Working capital 416.0 456.6 487.6 Capital turnover 1.77X 1.83X 1.77x ROCE, LTM % 13.4 15.6 14.9 Net debt/EBITDA LTM 2.2 2.2 1.9 Net debt/equity 0.69 0.70 0.53 Equity ratio, % 35.4 35.8 36.9

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Outlook

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Outlook for 2017

27 July 2017 Amer Sports Interim Report Presentation 12

  • In 2017, Amer Sports’ net sales in local currencies are expected

to increase from 2016, despite short-term market softness. EBIT

  • excl. IAC is expected to be approximately at the level of 2016.
  • The growth in 2017 is expected to be biased to the second half
  • f the year. EBIT excl. IAC includes further accelerated

investment into the company’s transformation toward omni- channel and digital to win in the fast changing market place.

  • The company will continue to focus on growing the core

business and the five prioritized areas: Apparel and Footwear, US, China, Business to Consumer, as well as digitally connected devices and services.

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APPENDIX

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Net sales and EBIT breakdown

27 July 2017 15

* Excl. IAC

NET SALES (MEUR) Q2/ 2017 Q1/ 2017 2016 Q4/ 2016 Q3/ 2016 Q2/ 2016 Q1/ 2016 2015 Q4/ 2015 Q3/ 2015 Q2/ 2015 Q1/ 2015 Outdoor 238.3 396.2 1,601.8 490.7 505.7 231.0 374.4 1,530.1 501.9 476.6 209.7 341.9 Ball Sports 167.5 184.9 671.1 171.9 147.0 165.5 186.7 647.0 165.7 147.8 169.4 164.1 Fitness 81.5 80.5 349.2 109.8 84.1 80.9 74.4 357.3 116.1 89.3 82.0 69.9 Total 487.3 661.6 2,622.1 772.4 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9 EBIT (MEUR) Q2/ 2017* Q1/ 2017* 2016* Q4/ 2016* Q3/ 2016* Q2/ 2016 Q1/ 2016* 2015* Q4/ 2015 Q3/ 2015 Q2/ 2015* Q1/ 2015* Outdoor

  • 31.1

28.8 196.9 69.7 105.5

  • 16.0

37.7 161.2 65.6 92.9

  • 18.7

21.4 Ball Sports 9.0 16.5 44.8 12.8 5.3 7.7 19.0 46.6 8.2 8.8 11.3 18.3 Fitness 2.5 0.7 17.0 6.8 5.4 4.5 0.3 31.2 15.7 9.1 5.1 1.3 Headquarters

  • 5.2
  • 7.8
  • 37.0
  • 8.0
  • 9.7
  • 8.3
  • 11.0
  • 26.9
  • 5.5
  • 7.3
  • 6.7
  • 7.4

Total

  • 24.8

38.2 221.7 81.3 106.5

  • 12.1

46.0 212.1 84.0 103.5

  • 9.0

33.6

Amer Sports Interim Report Presentation

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Net sales by Business Unit

27 July 2017 Amer Sports Interim Report Presentation 16

MEUR Q2/2017 Q2/2016 Ch % Ch %* 2016 Footwear

100.1 97.0 3 2

490.5 Apparel

59.2 48.8 21 22

431.1 Winter Sports Equipment

14.2 16.1

  • 12
  • 12

388.5 Cycling

31.4 38.0

  • 17
  • 18

150.2 Sports Instruments

33.4 31.1 7 7

141.5 Individual Ball Sports

81.1 79.5 2 1

299.8 Team Sports

86.4 86.0

  • 2

371.3 Fitness

81.5 80.9 1 1

349.2

*In local currencies

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SLIDE 17

Net sales by region

27 July 2017 17

MEUR Q2/ 2017 Q1/ 2017 2016 Q4/ 2016 Q3/ 2016 Q2/ 2016 Q1/ 2016 2015 Q4/ 2015 Q3/ 2015 Q2/ 2015 Q1/ 2015 EMEA 170.5 289.5 1,133.7 345.3 334.7 174.8 278.9 1,114.7 356.8 319.3 168.0 270.6 Americas 238.0 276.0 1,116.0 314.5 304.6 229.8 267.1 1,070.1 313.2 302.0 224.7 230.2 Asia Pacific 78.8 96.1 372.4 112.6 97.5 72.8 89.5 349.6 113.7 92.4 68.4 75.1 Total 487.3 661.6 2,622.1 772.4 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9

Amer Sports Interim Report Presentation

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Outdoor

Sales development by region in Q2/2017

27 July 2017 Amer Sports Interim Report Presentation 18

Fitness Total

EMEA Americas APAC

Ball Sports EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 121.6

  • 3

72.2 9 44.5 12 238.3 3 Ball Sports 31.4 1 116.6

  • 2

19.5 8 167.5 Fitness 17.5 4 49.2 14.8

  • 4

81.5 1 Total 170.5

  • 2

238.0 2 78.8 8 487.3 1

* Change in local currencies

238.3 167.5 81.5 487.3 19% 11% 19% 70% 19% 21% 60% 16% 35% 49% 51% 30%

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Refinancing needs well covered

27 July 2017 Amer Sports Interim Report Presentation 19

  • Cash EUR 246.4 million and

unused committed facilities EUR 150 million (Jun 30, 2017)

  • Commercial paper program in size
  • f EUR 500 million completely

unutilized

  • No scheduled repayments of

long-term loans in 2017

  • Average interest rate of loan

portfolio 2.5% (Jun 30, 2016 2.1%)

0,0 50,0 100,0 150,0 200,0 250,0 Bonds Bank loans Commercial Papers Other

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Foreign currency translation difference

27 July 2017 Amer Sports Interim Report Presentation 20

EUR million Q2 2017 Q2 2016 Business Area

Reported Reported Local Currency Translation Difference

Footwear 100.1 97.0 97.7 0.7 Apparel 59.2 48.8 48.4

  • 0.4

Winter Sports Equipment 14.2 16.1 16.2 0.1 Cycling 31.4 38.0 38.2 0.2 Sports Instruments 33.4 31.1 31.3 0.2 Outdoor 238.3 231.0 231.8 0.8 Individual Ball Sports 81.1 79.5 80.2 0.7 Team Sports 86.4 86.0 87.9 1.9 Ball Sports 167.5 165.5 168.1 2.6 Fitness 81.5 80.9 81.0 0.1 Total 487.3 477.4 480.9 3.5

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Next 12 months net cash flows and related hedges, main FX pairs

27 July 2017 Amer Sports Financial Statements 21

Main FX pairs Hedge % Next 12mth flow (EURm) ECB Fixing rate(@30.6.17) Hedge FX ’17 Hedge FX’18

USD purchases against EUR 100%

  • 415

1.14 1.14 1.11 USD sales against EUR 100% +73 1.14 1.12 1.09 GBP sales against EUR 100% +97 0.88 0.86 0.87 CHF sales against EUR 100% +53 1.09 1.08 1.07 USD (net)purchases against CAD 100%

  • 96

1.30 1.31 1.31

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Contact information

  • Heikki Takala, President and CEO
  • Tel. +358 20 712 2510
  • Jussi Siitonen, CFO
  • Tel. +358 20 7122511
  • Päivi Antola, Director, Corporate Communications and IR
  • Tel. +358 20 712 2537
  • www.amersports.com

27 July 2017 22 Amer Sports Interim Report Presentation

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SLIDE 23

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.

www.amersports.com

27 July 2017 23 Amer Sports Interim Report Presentation

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