Solid quarter with broad-based progress, strategic focus areas are - - PowerPoint PPT Presentation

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Solid quarter with broad-based progress, strategic focus areas are - - PowerPoint PPT Presentation

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Amer Sports Q3/2018 Solid quarter with broad-based progress, strategic focus areas are delivering October 25, 2018 Heikki Takala, President and CEO Profitable growth continued in Q3 Net sales EUR 757.2 million (697.9): +9%, organic

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Solid quarter with broad-based progress, strategic focus areas are delivering

October 25, 2018 – Heikki Takala, President and CEO Amer Sports Q3/2018

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Profitable growth continued in Q3

  • Net sales EUR 757.2 million (697.9): +9%, organic growth 3%*

– Cycling business reported as discontinued operations**

  • Gross margin 46.2% (46.5)
  • EBIT excl. IAC EUR 116.9 million (103.8)
  • Free cash flow -132.2 (-55.8) reflecting inventory build-up for Q4

25 October 2018 Amer Sports Interim Report Presentation

* In local currencies ** 2018 and 2017 figures adjusted accordingly The comparative figures for 2017 have been restated in accordance with IFRS 15 Revenue from contracts with customers and IFRS 9 Financial instruments

2

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Progress across the portfolio

  • Broad-based growth and improvement

– Winter Sports Equipment +8%, strong momentum in all product categories – Sports Instruments +15%, strong momentum – Ball Sports +4%, good demand especially in baseball category +16%

  • Apparel +31% further boosted by Peak Performance,

Arc’teryx +7% with another year of double digit growth

  • Fitness order book strong for Q4 thanks to several new customers

25 October 2018 Amer Sports Interim Report Presentation 3

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Strategic priorities are delivering

  • Apparel accelerates with 31% growth
  • Footwear EMEA distribution renewal continues – longer term

improvement already in sight. US growing strongly

  • Direct to Consumer organic growth +17% to EUR 55 million in sales

– own retail +13% (same store growth +7%) – e-commerce +23%

  • “Modern sales channels” ~30% of sales
  • China +20%
  • US returning to a mid-single digit growth
  • Portfolio: actively finding a buyer for the Cycling asset

25 October 2018 Amer Sports Interim Report Presentation 4

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Balance sheet

25 October 2018 Amer Sports Interim Report Presentation 5

EUR million September 30, 2018 September 30, 2017

  • Dec. 31,

2017 Net debt 946.8 608.1 460.7 Shareholders’ equity 921.5 860.1 885.4 Capital employed 1,868.3 1,468.3 1,346.0 Working capital 1,010.9 863.7 755.4 Capital turnover, LTM 1.76X 1.78X 1.87X ROCE*, % 14.7 13.2 14.8 Net debt/EBITDA* LTM 3.17 2.29 1.62 Net debt/equity 1.03 0.71 0.52

* Excluding IAC

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Outlook unchanged – guided by our long term targets and strategies

  • In 2018, Amer Sports’ net sales in local currencies as well as EBIT excl. IAC

are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven.

  • The company will prioritize sustainable, profitable growth, focusing on its

five strategic priorities (Apparel and Footwear, Direct to Consumer, China, US, and Connected Devices and Services) whilst continuing its consumer- led transformation.

25 October 2018 Amer Sports Interim Report Presentation 6

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  • 40
  • 20

20 40 60 80 100 120

EBIT excluding items affecting comparability

MEUR

79.2 Q3/18 Q3/14 91.6 Q3/15 Q3/16 103.5 Q3/17 99.8 113.1

Outdoor Q3/2018,

continuing operations (Q3/2017)

Net sales EUR 522.0 million, +12%*

  • Apparel +31%, driven by Peak

Performance and Arc’teryx

  • Footwear -4%, consolidation of

EMEA distribution continued, US and Japan up high-single digit

  • Winter Sports +8%
  • Sports Instruments +15%

EBIT excl. IAC EUR 113.1 million (99.8)

25 October 2018 Amer Sports Interim Report Presentation

* In local currencies

100 200 300 400 500 600

Net sales

MEUR

Q3/14 Q3/15 401.3 Q3/16 445.4 Q3/17 471.4 Q3/18 468.9 522.0

7

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Ball Sports Q3/2018

(Q3/2017)

Net sales EUR 147.2 million, +4%*

  • Team Sports grew by 9%,

Baseball category sales grew by 16% EBIT excl. IAC EUR 7.7 million (6.3) EBIT margin excl. IAC 5.2% (4.5)

25 October 2018 Amer Sports Interim Report Presentation

* In local currencies

20 40 60 80 100 120 140 160 180 200

Net sales

MEUR

Q3/18 147.8 Q3/14 Q3/15 147.0 112.9 Q3/16 Q3/17 141.2 147.2

2 4 6 8 10 12 14 16 18 20

EBIT excluding items affecting comparability

MEUR

Q3/18 Q3/14 Q3/15 7.7 Q3/16 8.8 3.9 5.3 Q3/17 6.3

8

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2 4 6 8 10 12 14 16

EBIT excluding items affecting comparability

Fitness Q3/2018

(Q3/2017)

Net sales EUR 88.0 million, at previous year’s level*

  • Growth in APAC offset by EMEA

EBIT excl. IAC EUR 1.2 million (4.5)

  • Decreased gross margin lowered

the profitability Order book strong for Q4

25 October 2018 Amer Sports Interim Report Presentation

* In local currencies

20 40 60 80 100 120 140

Net sales

MEUR

Q3/18 80.7 Q3/14 Q3/15 Q3/16 89.3 84.1 Q3/17 87.8 88.0 Q3/18 Q3/14 Q3/15 Q3/16 Q3/17 7.3 1.2 9.1 5.4 4.5

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Key takeaways from CMD in September

  • We continue to grow and create value
  • Our strategy is working and organic growth drivers remain largely unchanged

– Sustainable Growth Model – Clear portfolio roles – Group scale and synergy – Acceleration priorities: Softgoods, D2C, China, US, digitalization

  • We continue our transformation towards areas of faster sustainable growth,

higher profitability, and asset efficiency, with increasing weight of Softgoods, D2C, and China

  • As part of the transformation, we will broaden our toolbox to include strategic

portfolio choices – a more focused company with increasingly attractive business model

Amer Sports Interim Report Presentation 10 25 October 2018

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Appendix

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Net sales and EBIT breakdown (continuing operations)

25 October 2018 Amer Sports Interim Report Presentation

* Excl. IAC NET SALES (MEUR) Q3/ 2018 Q2/ 2018 Q1/ 2018 2017 Q4/ 2017 Q3/ 2017 Q2/ 2017 Q1/ 2017 2016 Q4/ 2016 Q3/ 2016 Q2/ 2016 Q1/ 2016 Outdoor 522.0 216.2 349.1 1,540.0 504.1 468.9 210.1 356.9 1,451.6 452.4 471.4 193.0 334.7 Ball Sports 147.2 159.0 164.2 659.0 163.0 141.2 169.8 185.0 671.1 171.9 147.0 165.5 186.7 Fitness 88.0 79.9 78.4 375.6 118.9 87.8 84.4 84.5 349.2 109.8 84.1 80.9 74.4 Total 757.2 455.1 591.1 2,574.6 786.0 697.9 464.3 626.4 2,471.9 734.1 702.5 439.4 595.8 EBIT (MEUR) Q3/ 2018* Q2/ 2018* Q1/ 2018 2017* Q4/ 2017* Q3/ 2017* Q2/ 2017* Q1/ 2017* 2016* Q4/ 2016* Q3/ 2016* Q2/ 2016 Q1/ 2016* Outdoor 113.1

  • 27.9

33.6 178.4 81.4 99.8

  • 28.5

25.7 187.1 70.7 103.5

  • 19.3

32.3 Ball Sports 7.7 11.0 14.9 45.2 13.8 6.3 9.3 15.8 44.8 12.8 5.3 7.7 19.0 Fitness 1.2 0.0 0.1 20.1 12.4 4.5 2.5 0.7 17.0 6.8 5.4 4.5 0.3 Headquarters

  • 5.1
  • 5.8
  • 8.3
  • 29.3
  • 9.5
  • 6.8
  • 5.2
  • 7.8
  • 37.0
  • 8.0
  • 9.7
  • 8.3
  • 11.0

Total 116.9

  • 22.7

40.3 214.4 98.1 103.8

  • 21.9

34.4 211.9 82.3 104.5

  • 15.4

40.6

13

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Net sales by Business Unit in Q3

(continuing operations)

25 October 2018 Amer Sports Interim Report Presentation

MEUR Q3/2018 Q3/2017 Ch % Ch %* 2017 Footwear 138.5 145.1

  • 5
  • 4

500.8 Apparel 196.9 153.1 29 31 482.3 Winter Sports Equipment 143.4 133.1 8 8 415.2 Sports Instruments 43.2 37.6 15 15 141.7 Individual Ball Sports 62.9 64.5

  • 2
  • 2

296.9 Team Sports 84.3 76.7 10 9 362.1 Fitness 88.0 87.8 375.6

* In local currencies

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25 October 2018 Amer Sports Interim Report Presentation

16% 35% 49% 16% 35% 49% 16% 35% 49% Outdoor 522.0 13% 59% 28% Ball Sports 147.2 12% 16% 72% Fitness 88.0 19% 24% 57% Total 757.2 14% 46% 40%

EMEA Americas APAC

Sales development by region (continuing operations)

EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 307.6 18 146.0 1 68.4 15 522.0 12 Ball Sports 23.0

  • 6

106.5 6 17.7 10 147.2 4 Fitness 20.7

  • 15

50.3 3 17.0 13 88.0 Total 351.3 14 302.8 3 103.1 14 757.2 9

* Change in local currencies

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Foreign currency translation difference

(continuing operations)

25 October 2018 Amer Sports Interim Report Presentation

Q3/2018 Q3/2017 Change Reported Reported Local FX Reported, % Local FX, % Footwear

138.5 145.1 143.9

  • 5 %
  • 4 %

Apparel

196.9 153.1 150.3 29 % 31 %

Winter Sports Equipment

143.4 133.1 132.5 8 % 8 %

Sports Instruments

43.2 37.6 37.5 15 % 15 %

Outdoor

522.0 468.9 464.2 11 % 12 %

Individual Ball Sports

62.9 64.5 64.3

  • 2 %
  • 2 %

Team Sports

84.3 76.7 77.3 10 % 9 %

Ball Sports

147.2 141.2 141.6 4 % 4 %

Fitness

88.0 87.8 88.3 0 % 0 %

Total

757.2 697.9 694.1 8 % 9 %

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Balance sheet

25 October 2018 Amer Sports Interim Report Presentation

MEUR Sep 30, 2018 Sep 30, 2017 Dec 31, 2017

Goodwill and other intangible non-current assets 878.7 646.6 649.2 Tangible non-current assets and other non-current assets 339.1 332.2 340.5 Inventories and work in progress 611.5 562.6 481.3 Receivables 809.9 723.3 772.2 Cash and cash equivalents 198.1 229.3 358.4 Assets held for sale 120.7

  • Shareholders’ equity

921.5 860.1 885.4 Interest bearing liabilities 1,146.2 837.4 819.1

  • Long-term

742.7 792.0 632.8

  • Current

403.5 45.4 186.3 Liabilities held for sale 18.5

  • Other liabilities

871.8 796.5 897.6 Total 2,958.0 2,494.0 2,602.1

17

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IFRS 15 Adjustments

(continuing operations)

25 October 2018 Amer Sports Interim Report Presentation 18

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Contact information

  • Heikki Takala, President and CEO
  • Tel. +358 20 712 2510
  • Jussi Siitonen, CFO
  • Tel. +358 20 7122511
  • Samppa Seppälä, Director, Corporate Communications and IR
  • Tel. +358 50 5680533
  • www.amersports.com

25 October 2018 Amer Sports Interim Report Presentation 19

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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

25 October 2018 Amer Sports Interim Report Presentation 20

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