Amer Sports Q1/2015 Solid growth and …s3-eu-west-1.amazonaws.com/amersports/uploads/...13 23 April...

Amer Sports Q1/2015

Solid growth and improvement in line withstrategic prioritiesApril 23, 2015 – Heikki Takala, President and CEO

Q1/2015: Solid growth and profit improvement

• Net sales EUR 575.9 million (501.5), +5%

– Apparel +22%, Winter Sports Equipment +17%, Footwear +13%, Sports

Instruments +10%

– Cycling at least year’s level, Ball Sports and Fitness -5%

– EMEA +8%, Americas +2%, APAC +6% (China +19%)

– B2C+39%

• Gross margin 45.9% (43.0%), driven by Individual Ball Sports and Apparel.

• EBIT excl. NRI EUR 33.6 million (20.6): increased sales and improved gross

margin, further boosted by currencies

• Free cash flow EUR 43.0 million (44.2)

23 April 2015 Amer Sports Interim Report Presentation2

Strong balance sheet


EUR million March 31, 2015 March 31, 2014 Dec. 31, 2014

Net debt 445.2 422.2 419.1

Shareholder’s equity 876.4 730.5 842.8

Capital employed 1.321,6 1.152,7 1,261.9

Working capital 524,2 415,5 495.4

Net debt/equity 0.51 0.58 0.50

Equity ratio, % 39.2 40.5 38.8


-40

-20

0

20

40

60

80

100

EBIT excludingnon-recurring items

0

50

100

150

200

250

300

350

400

450

500

Net sales

Outdoor Q1/2015 (Q1/2014)

23 April 20154

MEURMEUR

233.5

10.79.3

Q1/11 Q1/11Q1/12

256.5

Q1/12

14.2

Q1/13

266.5

Q1/13

Net sales EUR 341.9 million, +14%

• Apparel +22%, Winter Sports Equipment +17%, Footwear +13%,

Sports Instruments +10%, Cycling at last year’s level

EBIT excluding non-recurring items EUR 21.4 million (9.5) driven by sales

growth

Q1/14

287.5

Q1/14

9.5

Q1/15

341.9

Q1/15

21.4

Ball Sports Q1/2015 (Q1/2014)

Net sales EUR 164.1 million, -5%• Cleaning up of low-margin sales continued

• Double-digit growth in performance tennis rackets

EBIT excluding non-recurring items EUR 18.3 million (13.2) driven by improved

gross margin

The acquisition of Louisville Slugger enhances Ball Sports’ product portfolio and

offers important operational scale and synergy benefits

23 April 2015 Amer Sports Interim Report Presentation5 23 April 20155

0

20

40

60

80

100

120

140

160

180

Net sales

-5

0

5

10

15

20

25

EBIT excludingnon-recurring itemsMEUR MEUR

17.7

Q1/11Q1/11

164.0

Q1/12Q1/12

Q1/13

19.9

Q1/13

150.7

Q1/14

13.2

159.0173.6

Q1/14

17.4

Q1/15

164.1

18.3

Q1/15

Fitness Q1/2015 (Q1/2014)

Net sales EUR 69.9 million, -5%

• Moving from third-party dealer model to in-house sales in the USA resulted in

de-stocking of the current dealer inventories

EBIT excluding non-recurring items EUR 1.3 million (3.4) mainly due to slightly

decreased gross margin

23 April 2015 Amer Sports Interim Report Presentation6 23 April 20156

0

20

40

60

80

100

120

Net sales

-2

0

2

4

6

8

10

12

14

16

EBIT excludingnon-recurring itemsMEUR

MEUR

56.6

3.9

Q1/11 Q1/11

59.7

Q1/12 Q1/12Q1/13

-0.4

Q1/14

62.5

3.4

Q1/13

63.3

Q1/14

3.3

Q1/15

69.9

Q1/15

1.3

OUTLOOK

Outlook for 2015

• In 2015, Amer Sports net sales in local currencies is expected to

increase and EBIT margin excluding non-recurring items to improve

from 2014, despite challenging market conditions.

• The company will continue to focus on apparel and footwear growth,

consumer-driven product and marketing innovation, commercial

expansion and operational excellence.


We continue moving with confidence

We continue moving with confidence


Clarify future direction,

build critical capabilities,

allocate resources and

reignite growth

Deliver mid-term

targets and prepare

for acceleration

• Sustainable Growth Model

• Integration for scalable,

synergistic platform:

acquisition readiness

• Qualification of business cases

for future acceleration

• On-going renewal and

restructuring

Sales acceleration at accretive

profitability

Continuous portfolio

transformation towards:

• Faster growth

• Higher profitability

• Asset efficiency

~2010 – 2013 ~2014 – 2016 ~2017 – 2020

• New strategy

• Transformation from

Hardgoods to ”Hybrid”

• Drive organic growth

• Operational excellence

APPENDIX

Net sales and EBIT breakdown (MEUR)


NET SALES

Q1/

2015 2014

Q4/

2014

Q3/

2014

Q2/

2014

Q1/

2014 2013

Q4/

013

Q3/

2013

Q2/

2013

Q1/

2013

Outdoor 341.9 1,371.2 456.7 452.2 174.8 287.5 1,289.5 433.7 420.6 168.7 266.5

Ball Sports 164.1 536.7 136.9 112.9 136.2 150.7 551.0 126.1 116.7 144.2 164.0

Fitness 69.9 320.8 111.7 80.7 65.1 63.3 296.0 97.6 71.6 64.3 62.5

Total 575.9 2,228.7 705.3 645.8 376.1 501.5 2,136.5 657.4 608.9 377.2 493.0

EBIT

Q1/

2015* 2014*

Q4/

2014*

Q3/

2014*

Q2/

2014*

Q1/

2014 2013

Q4/

2013

Q3/

2013

Q2/

2013

Q1/

2013

Outdoor 21.4 125.6 55.0 83.1 -22.0 9.5 127.0 52.5 87.4 -27.1 14.2

Ball Sports 18.3 35.9 12.5 3.9 6.3 13.2 27.0 3.9 -2.1 7.8 17.4

Fitness 1.3 29.7 14.9 7.3 4.1 3.4 24.4 14.3 6.2 4.3 -0.4

Headquarters -7.4 -22.9 -4.7 -6.7 -6.0 -5.5 -23.5 -6.0 -9.0 -3.7 -4.8

Total 33.6 168.3 77.7 87.6 -17.6 20.6 154.9 64.7 82.5 -18.7 26.4

* Excluding non-recurring items

Business area net sales


MEUR Q1/2015 Q1/2014 Ch % Ch %* 2014

Footwear 133.1 113.7 17 13 391.9

Apparel 91.9 70.9 30 22 328.5

Winter Sports Equipment 46.1 38.0 21 17 386.7

Cycling 40.4 39.0 4 1 138.5

Sports Instruments 30.4 25.9 17 10 125.6

Individual Ball Sports 88.7 85.4 4 -6 290.4

Team Sports 75.4 65.3 15 -4 246.3

Fitness 69.9 63.3 10 -5 320.8

Total 575.9 501.5 15 5 2,228.7

*Change in local currencies

Net sales by region


MEUR

Q1/

2015 2014

Q4/

2014

Q3/

2014

Q2/

2014

Q1/

2014 2013

Q4/

2013

Q3/

2013

Q2/

2013

Q1/

2013

EMEA 270.6 1,064.0 336.9 321.9 156.1 249.1 1,025.2 338.6 301.6 144.5 240.5

Americas 230.2 874.3 270.1 249.0 166.0 189.2 839.4 229.3 237.2 177.6 195.3

Asia Pacific 75.1 290.4 98.3 74.9 54.0 63.2 271.9 89.5 70.1 55.1 57.2

Total 575.9 2,228.7 705.3 645.8 376.1 501.5 2,136.5 657.4 608.9 377.2 493.0

Sales development by region in Q1/2015

Outdoor


Fitness Total

EMEA Americas APAC

Ball Sports

EMEA Americas APAC Total

MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %*

Outdoor 218.4 13 77.6 22 45.9 10 341.9 14

Ball Sports 37.1 -7 107.2 -5 19.8 0 164.1 -5

Fitness 15.1 -10 45.4 -5 9.4 2 69.9 -5

Total 270.6 8 230.2 2 75.1 6 575.9 5

* Change in local currencies

341.9 164.1 69.9 575.9

13%

64%

68%

23%

12%23%

65%

13%22%

65%

13%47%

40%

Balance sheet


MEUR

March 31,

2015

March 31,

2014

Goodwill and other intangible non-current assets 538.7 485.1

Tangible non-current assets and other non-current assets 317.8 267.0

Inventories and work in progress 417.7 344.4

Receivables 707.9 546.8

Cash and cash equivalents 254.3 159.3

Shareholders’ equity 876.4 730.5

Interest bearing liabilities 699.5 581.5

- Long-term 399.5 518.2

- Current 300.0 63.3

Other liabilities 660.5 553.6

Total 2,236.4 1,802.6

Contact information

• Heikki Takala, President and CEO

Tel. +358 20 712 2510

• Jussi Siitonen, CFO

Tel. +358 20 712 2511

• Päivi Antola, Director, Corporate Communications and IR

Tel. +358 20 712 2537

www.amersports.com


DisclaimerStatements 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 expressedin 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 orany other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.

www.amersports.com


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