investments delivering July 28, 2016 Heikki Takala, President and - PowerPoint PPT Presentation

Amer Sports Q2/2016 Acceleration and transformation continue, investments delivering July 28, 2016 – Heikki Takala, President and CEO

Growth and improvement despite headwinds • Net sales EUR 477.4 million (461.1), +6%* – Growth driven by Footwear (+15%), Apparel (+24%), and Cycling (+20%) – EMEA +7%, Americas +6%, APAC +7% (China +34%) – B2C +31%, e-commerce +49% • Gross margin 44.7% (44.1%) • EBIT EUR -12.1 million (-9.0 excl. IAC), acceleration investments continued • Net sales and profitability adversely impacted by the US customer bankruptcies • Free cash flow EUR -54.3 million (11.5) due to seasonal fluctuation • Good momentum in H1 *In local currencies 2 28 July 2016 Amer Sports Interim Report Presentation

Significant OPEX investments in H1 to support acceleration • Digital acceleration, building group-wide consumer database platform • Own retail, expecially Arc’teryx: – Accelerated store openings: new stores in the US (New York and Chicago), China, Japan, and Austria – More stores opening soon in China, US (New York and Chicago), Canada (Toronto), and Italy • Continuous e-commerce expansion, Canada and Japan going live • Significant distribution center expansion both in the US and Europe • M oving Arc’teryx into a larger production facility in Canada 3 28 July 2016 Amer Sports Interim Report Presentation

New Arc’teryx stores in Japan, China and the US Shanghai, China Yokohama, Japan New York Soho Kobe, Japan 4 28 July 2016 Amer Sports Interim Report Presentation

Q2 free cash flow negative, however not different from historical pattern 200 172.5 143.9 150 132.8 100 67.9 44.2 43.0 50 32.8 11.5 0 -50 -38.7 -50.0 -54.4 -100 -84.8 -92.2 -119.3 -150 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 • Quarterly shifts in repatriation of receivables (40 MEUR) and Asian vendor payments (20 MEUR) • Inventory building for H2, 100% of the inventory is current 5 28 July 2016 Amer Sports Interim Report Presentation

Balance sheet in a nutshell EUR million June 30, 2016 June 30, 2015 Dec. 31, 2015 Net debt 599.9 546.3 460.3 Shareholders’ equity 858.2 804.4 949.6 Capital employed 1,458.1 1,350.7 1,409.9 Working capital 456.6 421.3 462.5 Capital turnover, LTM 1.83X 1.85X 1.90X ROCE, LTM % 15.6 14.7 15.9 Net debt/equity 0.70 0.68 0.48 Equity ratio % 35.8 37.7 37.2 LTM = Last Twelve Months 6 28 July 2016 Amer Sports Interim Report Presentation

Outdoor Q2/2016 (Q2/2015) EBIT excluding items affecting comparability Net sales MEUR MEUR 600 100 80 500 60 400 40 300 231.0 209.7 20 150.9 168.7 174.8 -27.1 -18.7 -16.0 -25.4 -22.0 200 0 100 -20 0 -40 Q2/16 Q2/13 Q2/14 Q2/15 Q2/16 Q2/12 Q2/13 Q2/14 Q2/15 Q2/12 Net sales EUR 231.0 million, +13%* • Footwear +15%, Apparel +24% • Cycling +20%, supported by ENVE • Sports Instruments -6%, prepared for a big launch in Q3 • Winter Sports Equipment pre-orders -3%, a satisfactory result following several mild winters • Agile operating model protects gross margin and cash flow, strong innovation pipeline secures consumer momentum EBIT EUR -16.0 million (-18.7 excl. IAC) *In local currencies 7 7 28 July 2016 28 July 2016 Amer Sports Interim Report Presentation

Acquisition of ENVE • Carbon acceleration and global distribution expansion underway 8 28 July 2016 Amer Sports Interim Report Presentation

Ball Sports Q2/2016 (Q2/2015) Net sales EBIT excluding items affecting MEUR MEUR comparability 200 180 169.4 165.5 25 160 146.5 144.2 136.2 20 140 120 15 11.3 9.7 100 7.8 10 7.7 6.3 80 5 60 40 0 20 -5 0 Q2/16 Q2/12 Q2/13 Q2/14 Q2/15 Q2/16 Q2/12 Q2/13 Q2/14 Q2/15 Net sales EUR 165.5 million, at previous year’s level* • Sales adversely impacted by the US customer bankruptcies and timing difference in tennis product launches EBIT EUR 7.7 million (11.3 excl. IAC) • Order book is solid and indicates another year of Ball Sports improvement behind new business model *In local currencies 9 9 28 July 2016 28 July 2016 Amer Sports Interim Report Presentation

Fitness Q2/2016 (Q2/2015) EBIT excluding items affecting Net sales comparability 20 MEUR 140 120 15 100 82.0 10 80.9 80 65.1 56.4 64.3 4.3 4.1 5.1 4.5 5 60 1.0 40 0 20 -5 0 Q2/16 Q2/12 Q2/13 Q2/14 Q2/15 Q2/14 Q2/12 Q2/13 Q2/15 Q2/16 Net sales EUR 80.9 million, +1%* • New product and service program (Spinning, Queenax, new cardio…) rolling out, reaching full speed toward the end of the year EBIT EUR 4.5 million (5.1 excl. IAC ) *In local currencies 10 10 28 July 2016 28 July 2016 Amer Sports Interim Report Presentation

We focus on acceleration with a tremendous pipeline of initiatives 11 28 July 2016 Amer Sports Interim Report Presentation

OUTLOOK

Outlook for 2016 • In 2016, Amer Sports net sales in local currencies are expected to increase and EBIT margin excluding items affecting comparability to improve from 2015, despite challenging market conditions. • The company will focus on growing the core business and accelerating in five prioritized areas: Apparel and Footwear, US, China, Business to Consumer, as well as digitally connected devices and services. 13 28 July 2016 Amer Sports Interim Report Presentation

Prioritized, sequenced program continues

Acceleration and transformation Net sales ≥3.5 BEUR, improving EBIT-% Net sales ~2.5 BEUR, EBIT-% toward 10% Net sales 2+ BEUR, EBIT-% 7% Net sales Acceleration and 1.5 BEUR, scaling up, EBIT-% 4% Sustainable Growth Model transformation of and company profile Turnaround acquisition readiness continues ~2010 – 2013 ~2014 – 2015 ~2016 – 2020 15 28 July 2016 Amer Sports Interim Report Presentation

APPENDIX

Net sales and EBIT breakdown NET SALES Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2016 2016 2015 2015 2015 2015 2015 2014 2014 2014 2014 2014 Outdoor 231.0 374.4 1,530.1 501.9 476.6 209.7 341.9 1,371.2 456.7 452.2 174.8 287.5 Ball Sports 165.5 186.7 647.0 165.7 147.8 169.4 164.1 536.7 136.9 112.9 136.2 150.7 Fitness 80.9 74.4 357.3 116.1 89.3 82.0 69.9 320.8 111.7 80.7 65.1 63.3 Total 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5 EBIT Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2016 2016* 2015* 2015 2015 2015* 2015* 2014* 2014* 2014* 2014* 2014 Outdoor -16.0 37.7 161.2 65.6 92.9 -18.7 21.4 125.6 55.0 83.1 -22.0 9.5 Ball Sports 7.7 19.0 46.6 8.2 8.8 11.3 18.3 35.9 12.5 3.9 6.3 13.2 Fitness 4.5 0.3 31.2 15.7 9.1 5.1 1.3 29.7 14.9 7.3 4.1 3.4 Headquarters -8.3 -11.0 -26.9 -5.5 -7.3 -6.7 -7.4 -22.9 -4.7 -6.7 -6.0 -5.5 Total -12.1 46.0 212.1 84.0 103.5 -9.0 33.6 168.3 77.7 87.6 -17.6 20.6 * Excl. IAC 18 28 July 2016 Amer Sports Interim Report Presentation

Business area net sales Ch Q2/2016 Q2/2015 Ch % %* 2015 Footwear 97.0 86.4 12 15 461.2 Apparel 48.8 41.3 18 24 387.2 Winter Sports Equipment 16.1 16.6 -3 -3 400.2 Cycling 38.0 31.7 20 20 138.5 Sports Instruments 31.1 33.7 -8 -6 143.0 Individual Ball Sports 79.5 88.2 -10 -7 315.4 Team Sports 86.0 81.2 6 9 331.6 Fitness 80.9 82.0 -1 1 357.3 Total 477.4 461.1 4 6 2,534.4 *Change in local currencies 19 28 July 2016 Amer Sports Interim Report Presentation

Net sales by region Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ MEUR 2016 2016 2015 2015 2015 2015 2015 2014 2014 2014 2014 2014 EMEA 174.8 278.9 1,114.7 356.8 319.3 168.0 270.6 1,064.0 336.9 321.9 156.1 249.1 Americas 229.8 267.1 1,070.1 313.2 302.0 224.7 230.2 874.3 270.1 249.0 166.0 189.2 Asia Pacific 72.8 89.5 349.6 113.7 92.4 68.4 75.1 290.4 98.3 74.9 54.0 63.2 Total 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5 20 28 July 2016 Amer Sports Interim Report Presentation

Sales development by region in Q2/2016 EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 125.7 8 65.8 21 39.5 18 231.0 13 Ball Sports 31.7 8 116.0 1 17.8 -12 165.5 0 Fitness 17.4 -3 48.0 0 15.5 11 80.9 1 Total 174.8 7 229.8 6 72.8 7 477.4 6 * Change in local currencies Ball Sports Total Fitness Outdoor 15% 11% 17% 19% 19% 37% 54% 22% 477.4 231.0 165.5 80.9 70% 59% 29% 48% 68% APAC EMEA Americas 21 28 July 2016 Amer Sports Interim Report Presentation

Balance sheet June 30, June 30, MEUR 2016 2015 Goodwill and other intangible non-current assets 665.7 592.6 Tangible non-current assets and other non-current assets 344.5 326.5 Inventories and work in progress 585.7 517.8 Receivables 574.2 584.5 Cash and cash equivalents 229.9 109.6 Shareholders’ equity 858.2 804.4 Interest bearing liabilities 829.8 655.9 - Long-term 777.7 480.8 - Current 52.1 175.1 Other liabilities 712.0 670.7 Total 2,400.0 2,131.0 22 28 July 2016 Amer Sports Interim Report Presentation