amer sports 2015 sixth consecutive year of profitable...

2/3/2016

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Amer Sports

2015 – Sixth consecutive year of profitable growthFebruary 3, 2016 – Heikki Takala, President and CEO

Q4 2015: Solid growth continued

• Net sales EUR 783.7 million (705.3), +6%*. Excl. acquisitions +5%*.

– Broad-based growth

– Fitness and Cycling: business model renewal and restructuring

• Gross margin 43.8% (43.0%)

• EBIT EUR 84.0 million (77.7**)

• Free cash flow EUR 159.4 million (132.8)

3 February 2016 Amer Sports Financial Statements2

* In local currencies

** Excl. NRI

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2015: Another record year

• Net sales EUR 2,534.4 million (2,228.7), +6%*. Excl. acquisitions +5%*.

– Growth driven by Apparel +15%, Footwear +14%, Team Sports +15% and Sports

Instruments +7%

– EMEA +4%, Americas +6%, APAC +11%

– B2C +33%, e-commerce +49%

• Gross margin 45.2% (43.9%), OPEX 37.1% (36.6%)

• EBIT EUR 212.1 million (168.3), EBIT margin 8.4% (7.6%)**

– Acceleration costs absorbed in operational results

• Free cash flow EUR 121.7 million (53.5), 100% of net profit

• Dividend proposal EUR 0.55 per share (0.45)


* In local currencies

** Excl. NRI

Balance sheet strengthening further


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

Net debt 460.3 419.1

Shareholder’s equity 949.6 842.8

Capital employed 1,409.9 1,261.9

Working capital 508.9 495.4

Net debt/EBITDA 1.7 2.0

Net debt/equity 0.48 0.50

Equity ratio, % 37.2 38.8

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Progress vs. financial targets set in 2010

3 Feb, 2016 Amer Sports Financial Statements5

Target 2009 2010 2011 2012 2013 2014 2015

GrowthDelivering organic,

currency-neutral

annual growth of 5%

-4% 8% 9% 5% 8% 6% 5%

ProfitabilityEBIT of at least 10%

of net sales3.2% 6.2% 7.2% 6.7% 7.3% 7.6% 8.4%

Cash flowAnnual free cash

flow equal to net

profit

4.5 0.7 -0.2 0.9 0.5 0.6 1.0

Balance

sheet

Year-end Net Debt /

EBITDA ratio of 3

or less

3.6 2.2 2.3 2.5 2.2 2.0 1.7

We reached several milestones in 2015

• Company Gross Margin above 45%

• Softgoods EUR 900 million, up by EUR 600 million vs. 6 years ago

• Business to Consumer 7% of the Group (1% in 2010)

• Sales in China x5 since 2009

• Connected devices sales 7% of the Group (0% in 2010)

• Winter Sports Equipment profitability improved in a mild winter

• Wilson early turn-around


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OUTLOOK

Outlook for 2016


• In 2016, Amer Sports net sales in local currencies are expected

to increase and EBIT margin excluding non-recurring items to

improve from 2015, despite challenging market conditions.

• The company will focus on growing the core business and

accelerating five prioritized areas: Apparel and Footwear, US,

China, Business to Consumer, as well as digitally connected

devices and services.

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Accelerating toward 2020

Full speed ahead

• Grow the core

• Focus on accelerating profitable growth especially in the 5

prioritized areas:

– Apparel and Footwear (2020 target: MEUR ~1,500)

– US (MUSD ~1,500)

– China (MEUR ~200)

– Business to Consumer (MEUR ~400+)

– Digitally Connected Devices and Services (MEUR ~600+)

• Attractive returns behind profitable growth and ongoing

company transformation

3 February 201610 Amer Sports Financial Statements

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Prioritized, sequenced program continues

11

• Sustainable Growth Model

• Integration

• Acquisition readiness

• On-going renewal and

acceleration

Net sales ≥3.5 BEUR,

improving EBIT-%

Continuous portfolio

transformation toward:

• Faster growth

• Higher profitability

• Asset efficiency

~2010 – 2013 ~2014 – 2015 ~2016 – 2020

• New strategy

• Transformation from

Hardgoods to ”Hybrid”

• Drive organic growth

• Operational excellence

Net sales

1.5 BEUR,

EBIT-% 4%

Net sales 2+ BEUR,

EBIT-% 7%

Net sales ~2.5 BEUR,

EBIT-% toward 10%

Amer Sports Financial Statements

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APPENDIX

Record sales and operating profit


EUR million 2015 2014 Ch % Ch %*

Net sales 2,534.4 2,228.7 14 6

Gross profit 1,145.9 979.0 17

Gross profit, % of net sales 45.2 43.9

EBIT excluding NRI 212.1 168.3 26

EBIT % excluding NRI 8.4 7.6

Non-recurring items, NRI -8.0 -54.2

EBIT total 204.1 114.1

Free cash flow 121.7 53.5

*) In local currencies

**) Cash flow from operating activities - net capital expenditures - restricted cash

(Net capital expenditures: total capital expenditure less proceeds from sale of assets)

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Broad-based growth


MEUR 2015 2014

Ch

%

Ch

%*

Footwear 461.2 391.9 18 14

Apparel 387.2 328.5 18 15

Winter Sports Equipment 400.2 386.7 3 1

Cycling 138.5 138.5 0 -2

Sports Instruments 143.0 125.6 14 7

Individual Ball Sports 315.4 290.4 9 -2

Team Sports 331.6 246.3 35 15

Fitness 357.3 320.8 11 -3

Total 2,534.4 2,228.7 14 6

*In local currencies

Net sales and EBIT breakdown

3 February 201616

* Excluding non-recurring items

NET SALES

(MEUR) 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015 2014

Q4/

2014

Q3/

2014

Q2/

2014

Q1/

2014

Outdoor 1,530.1 501.9 476.6 209.7 341.9 1,371.2 456.7 452.2 174.8 287.5

Ball Sports 647.0 165.7 147.8 169.4 164.1 536.7 136.9 112.9 136.2 150.7

Fitness 357.3 116.1 89.3 82.0 69.9 320.8 111.7 80.7 65.1 63.3

Total 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5

EBIT

(MEUR) 2015*

Q4/

2015

Q3/

2015

Q2/

2015*

Q1/

2015* 2014*

Q4/

2014*

Q3/

2014*

Q2/

2014*

Q1/

2014

Outdoor 161.2 65.6 92.9 -18.7 21.4 125.6 55.0 83.1 -22.0 9.5

Ball Sports 46.6 8.2 8.8 11.3 18.3 35.9 12.5 3.9 6.3 13.2

Fitness 31.2 15.7 9.1 5.1 1.3 29.7 14.9 7.3 4.1 3.4

Headquarters -26.9 -5.5 -7.3 -6.7 -7.4 -22.9 -4.7 -6.7 -6.0 -5.5

Total 212.1 84.0 103.5 -9.0 33.6 168.3 77.7 87.6 -17.6 20.6


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3 February 201617

Outdoor 2015 (2014)

3 February 201617

Net sales +8% in local currencies

• Apparel +15%, Footwear +14%

• Winter Sports Equipment +1%, despite mild winters particularly in Europe

• Cycling -2%

• Sports Instruments +7%, driven by strengthened distribution supported by product

launches

EBIT excluding non-recurring items EUR 161.2 million (125.6)

-40

-20

0

20

40

60

80

100

EBIT excludingnon-recurring items

0

100

200

300

400

500

600

Net sales

MEURMEUR

375.041.745.0

Q4/11 Q4/11Q4/12

402.8

Q4/12

52.5

Q4/13

433.7

Q4/13Q4/14

456.7

Q4/14

55.0

Q4/15

501.9

Q4/15

65.6


3 February 201618

Ball Sports 2015 (2014)

3 February 201618

Net sales +6% in local currencies. Excl. Louisville Slugger +1%

• Performance rackets delivered double-digit growth

• In Team Sports, strong growth across all main product categories


0

20

40

60

80

100

120

140

160

180

Net sales

-5

0

5

10

15

20

25

EBIT excludingnon-recurring itemsMEUR MEUR

-0.7

Q4/11Q4/11

126.1

Q4/12Q4/12 Q4/13

1.0

Q4/13

136.9

Q4/14

12.5109.0

127.7

Q4/14

3.9

Q4/15

165.7

8.2

Q4/15


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3 February 201619

Fitness 2015 (2014)

3 February 201619

Net sales -3% in local currencies

• 2015 focus on business model renewal and restructuring as well as preparing for

acceleration in 2016 with important new building blocks Queenax and Spinning


0

20

40

60

80

100

120

140

Net salesMEUR

72.9

Q4/11

88.0

Q4/12 Q4/13 Q4/14

97.6

111.7

Q4/15

116.1

-2

0

2

4

6

8

10

12

14

16

18

EBIT excludingnon-recurring itemsMEUR

7.9

Q4/11 Q4/12

14.3 14.9

Q4/13 Q4/14

4.5

Q4/15

15.7


Net sales by region

3 February 201620

MEUR 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015 2014

Q4/

2014

Q3/

2014

Q2/

2014

Q1/

2014

EMEA 1,114.7 356.8 319.3 168.0 270.6 1,064.0 336.9 321.9 156.1 249.1

Americas 1,070.1 313.2 302.0 224.7 230.2 874.3 270.1 249.0 166.0 189.2

Asia Pacific 349.6 113.7 92.4 68.4 75.1 290.4 98.3 74.9 54.0 63.2

Total 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5


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Sales development by region in 2015

3 February 201621

Outdoor Fitness Total

EMEA Americas APAC

Ball Sports

EMEA Americas APAC Total

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

Outdoor 915.9 5 398.8 13 215.4 14 1,530.1 8

Ball Sports 114.4 -1 453.5 9 79.1 1 647.0 6

Fitness 84.4 2 217.8 -8 55.1 16 357.3 -3

Total 1,114.7 4 1,070.1 6 349.6 11 2,534.4 6

* Change in local currencies

1,530.1 647.0 357.3 2,534.4

14%60%

68%

26%

12%18%

70%

15%24%

61%

14%44%

42%


Foreign currency translation difference


EUR million 2015 2014

Business Area Reported ReportedLocal

Currency

Translation

Difference

Footwear 461.2 391.9 403.8 11.9

Apparel 387.2 328.5 337.3 8.8

Winter Sports Equipment 400.2 386.7 397.2 10.5

Cycling 138.5 138.5 141.7 3.2

Sports Instruments 143.0 125.6 133.3 7.7

Outdoor 1,530.1 1,371.2 1,413.3 42.1

Individual Ball Sports 315.4 290.4 320.6 30.2

Team Sports 331.6 246.3 289.1 42.8

Ball Sports 647.0 536.7 609.7 73.0

Fitness 357.3 320.8 366.8 46.0

Total 2,534.4 2,228.7 2,389.9 161.2

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Free cash flow

3 February 201623

-150

-100

-50

0

50

100

150

200

Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

Free cash flow: Cash flow from operating activities - net capital expenditures - restricted cash

(Net capital expenditure = total capital expenditure less proceeds from sale of assets)


Next refinancing needs in H1 2016

3 February 201624

• Cash EUR 331.4 million and

unused committed facilities

EUR 150 million (Dec 31,

2015)

• Commercial paper program

of EUR 500 million

completely unutilized

• Scheduled repayments of

long-term loans in 2016

EUR 157.2 million

• Average interest rate of loan

portfolio 2.7% (Dec 31, 2014

3.5%) 0,0

50,0

100,0

150,0

200,0

250,0

Bonds

Bank loans

CommercialPapers

Other


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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


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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amer sports 2015 sixth consecutive year of profitable...

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