amer sports q2/2013 - amazon s3s3-eu-west-1.amazonaws.com/amersports/uploads/...• annual opex is...

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AMER SPORTS Q2/2013Solid growth quarter, positive outlookJuly 25, 2013, Heikki Takala, President and CEO

• Net sales EUR 377.2 million (353.8), +9% in local currencies- Sports Instruments +31%, Apparel +22%, Fitness +18%, Footwear +17%

Seasonally low quarter, back at solid growth

- Winter Sports Equipment pre-orders up by 4%- Wilson +1%, several pockets of strong growth, difficult Individual Sports

especially in EMEA (-7%), and baseball bats (-17%)- Strong double-digits growth continued in emerging markets and business

to consumers

• Gross margin 43.6% (43.1%)- Improvement driven by Apparel, Cycling and Fitness

Amer Sports Results Presentation

• EBIT EUR -18.7 million (-19.2)- Sales volumes up EUR 14 million- Gross margin up EUR 2 million- Operating expenses up EUR 15 million

2

2

Business area net sales

MEURQ2/

2013Q2/

2012Ch%

Ch%* 2012

Winter Sports Equipment 13.7 14.4 -5 4 425.0

Footwear 65.5 56.7 16 17 314.4

Apparel 30.0 25.4 18 22 248.6

Cycling 27.7 29.6 -6 -5 129.0

Sports Instruments 31.8 24.8 28 31 104.2

Individual Ball Sports 85.5 87.3 -2 1 318.8

Team Sports 58.7 59.2 -1 1 250.9


Fitness 64.3 56.4 14 18 273.1

Total 377.2 353.8 7 9 2,064.0

3

* Change in local currencies

OPEX follows the seasonal pattern and growth investments

60OPEX increase, EURm• Historically, Net Sales and Gross

Profit are typically H2 biased due to fall/winter pre-order deliveries

20

30

40

50

T li D i

p(H1/H2: approx.40/60)

• Annual OPEX is evenly split to all four quarters

• OPEX growth is typically more H1 biased due to sell-in OPEX spend for pre-orders

• H1/2013 OPEX growth EUR 23m vs. EUR 32m in H1/2012

Amer Sports Results Presentation4

0

10

2010 H1-2012

Topline Driven

Investments

2011 2012 H1-2013

Maintenance

• Over half of the OPEX growth from distribution investments incl. own B2C

• Restructuring program with EUR 20m OPEX savings is proceeding as planned

3

Q2 cash flow follows the seasonal pattern

80

100

MEUR

-40

-20

0

20

40

60

80

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


-100

-80

-60

40

5

Balance sheet remains healthy

EUR million June 30, 2013 June 30, 2012 Dec. 31, 2012

Net debt 453 7 457 0 434 3Net debt 453.7 457.0 434.3

Shareholders’ equity 694.4 702.1 731.8

Capital employed 1,148.1 1,159.0 1,166.1

Working capital 372.0 377.9 400.1

Gearing, % 65 65 59

Equity ratio, % 39.9 37.9 39.1


4

• Cash EUR 96.9 million and unused committed facilities EUR 240 million

Refinancing needs well covered

150,0m

175,0m

facilities EUR 240 million (June 30, 2013)

• Commercial paper program EUR 500 million, of which EUR 78.0 million issued

• Scheduled long-term payments in 2013 EUR 25,0m

50,0m

75,0m

100,0m

125,0m


37.1 million and in 2014 EUR 62.7 million

• Average interest rate of loan portfolio 3.8% (3.6)

,0m

,

2013 2014 2015 2016 2017=>

Pension Loan Bonds Bank loans Commercial Papers

7

Winter and Outdoor Q2/2013 (Q2/2012)

250300350400450

Net sales

40

60

80

100

EBIT excludingnon-recurring items

MEUR MEUR

Net sales +15%• Winter Sports Equipment +4%. Pre-orders for the next season are up by 4%.• Footwear +17%• Apparel +22%• Cycling -5%

050

100150200250

-40

-20

0

20

40

133.4 -15.1116.5 -24.2

Q2/10 Q2/11 Q2/10 Q2/11Q2/12

150.9

Q2/12

-25.4

Q2/13

168.7-27.1

Q2/13


y g %• Sports Instruments +31%

EBIT EUR -27.1 million (-25.4)• Sales volumes up EUR 11 million• Gross margins up EUR 2 million• Operating expenses up EUR 16 million, two-thirds from distribution investments

8

5

Ball Sports Q2/2013 (Q2/2012)

120

140

160

180

Net sales

15

20

25

EBIT exludingnon-recurring itemsMEUR MEUR

153.9

17.0136.3 146.5 144.2

Net sales +1%• Individual Ball Sports +1%. EMEA declined by 7% due to poor market conditions.• Team Sports +1%

0

20

40

60

80

100

120

-5

0

5

10

15

Q2/10 Q2/10Q2/11 Q2/11

9.1

Q2/12 Q2/12

9.7

Q2/13

7.8

Q2/13


• Team Sports +1%• Market stabilizing, improving outlook especially in baseball

EBIT EUR 7.8 million (9.7)• Lower volumes and margins in EMEA, and in DeMarini bats• Operating expenses remained at last year’s level

9

Fitness Q2/2013 (Q2/2012)

708090

100

Net sales

4

6

8

10

EBIT excludingnon-recurring itemsMEUR

MEUR

64 34.3

Net sales +18%• Growth in all geographical regions, especially in Asia Pacific (+106%)• Commercial business +21%

010203040506070

-6

-4

-2

0

2

4

45.947.1 -0.3-3.7

Q2/10 Q2/10 Q2/11Q2/11 Q2/12Q2/12

56.41.0

Q2/13

64.3

Q2/13


• Commercial business +21%

EBIT EUR 4.3 million (1.0)• Increased sales volumes and improved gross margin

10

6

OUTLOOK

• In 2013, Amer Sports’ net sales growth in local currencies is expected to meet at minimum the company’s long-term annual 5% growth target and EBIT margin excluding non recurring items

Outlook for 2013

5% growth target and EBIT margin excluding non-recurring items is expected to improve from 2012.

• Amer Sports expects the trading environment to remain challenging in 2013.

• The company will continue to focus on softgoods growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence.


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APPENDIX

8

Key figures

EUR million Q2/13 Q2/12 1-6/13 1-6/12 2012Net sales 377.2 353.8 870.2 843.6 2,064.0Gross profit 164.3 152.5 382.0 368.8 900.6Gross profit, % of net sales 43.6 43.1 43.9 43.7 43.6EBIT excluding non-recurring items -18.7 -19.2 7.7 10.4 138.7EBIT % excluding non-recurring items 0.9 1.2 6.7Non-recurring items - - - -24.8EBIT -18.7 -19.2 7.7 10.4 113.9EBIT % 0.9 1.2 5.5


Net cash flow after investing activities -50.0 -44.2 17.9 53.2 71.8

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Net sales and EBIT breakdown (MEUR)

NET SALES

Q2/2013

Q1/2013 2012

Q4/2012

Q3/2012

Q2/2012

Q1/2012 2011

Q4/2011

Q3/2011

Q2/2011

Q1/2011

Winter andOutdoor 168.7 266.5 1,221.2 402.8 411.0 150.9 256.5 1,137.6 375.0 395.7 133.4 233.5

Ball Sports 144.2 164.0 569.7 127.7 121.9 146.5 173.6 511.0 109.0 106.7 136.3 159.0

Fitness 64.3 62.5 273.1 88.0 69.0 56.4 59.7 232.2 72.9 56.8 45.9 56.6

Total 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1

EBITQ2/

2013Q1/

2013 2012*Q4/

2012*Q3/

2012Q2/

2012Q1/

2012 2011Q4/

2011Q3/

2011Q2/

2011Q1/

2011Winter and Outdoor -27.1 14.2 113.8 41.7 86.8 -25.4 10.7 118.5 45.0 79.3 -15.1 9.3

Ball Sports 7.8 17.4 28.0 1.0 -2.6 9.7 19.9 25.0 -0.7 -1.1 9.1 17.7


Fitness 4.3 -0.4 17.0 7.9 4.2 1.0 3.9 10.3 4.5 2.8 -0.3 3.3

Headquarters -3.7 -4.8 -20.1 -3.6 -7.1 -4.5 -4.9 -18.3 -2.5 -6.6 -4.6 -4.6Total -18.7 26.4 138.7 47.0 81.3 -19.2 29.6 135.5 46.3 74.4 -10.9 25.7

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* Excluding non-recurring items

9

Net sales by region

MEURQ2/

2013Q1/

2013 2012Q4/

2012Q3/

2012Q2/

2012Q1/

2012 2011Q4/

2011Q3/

2011Q2/

2011Q1/

2011EMEA 144.5 240.5 962.7 305.3 297.6 133.1 226.7 917.6 273.8 300.0 129.7 214.1

Americas 177.6 195.3 834.1 224.8 236.2 167.4 205.7 742.1 205.4 203.8 146.5 186.4

Asia Pacific 55.1 57.2 267.2 88.4 68.1 53.3 57.4 221.1 77.7 55.4 39.4 48.6

Total 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1


Sales development by region in Q2/2013EMEA Americas Asia Pacific TotalMEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %*

Winter and Outdoor 97.0 16 45.4 19 26.3 4 168.7 15

27 %16 %

Winter and Outdoor Ball Sports Fitness Total

13 % 14 % 15 %

Ball Sports 31.6 -6 93.2 3 19.4 -6 144.2 1

Fitness 15.9 12 39.0 9 9.4 106 64.3 18

Total 144.5 10 177.6 8 55.1 13 377.2 9* In local currencies


57 %

168.765 %

22 % 144.261 %

25 % 64.3 47 %

38 %

377.2

Americas EMEA Asia Pacific

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10

Sales development by region in 1–6/2013EMEA Americas Asia Pacific TotalMEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %*

Winter and Outdoor 279.1 9 99.4 9 56.7 3 435.2 8

23 %13 %

Winter and Outdoor Ball Sports Fitness Total

13 % 12 % 13 %

Ball Sports 73.6 -2 194.4 -3 40.2 3 308.2 -2

Fitness 32.3 18 79.1 2 15.4 75 126.8 12

Total 385.0 8 372.9 1 112.3 9 870.2 5* In local currencies


64 %

435.263 %

24 % 308.262 %

26 % 126.843 %

44 %

870.2

Americas EMEA Asia Pacific

19

Balance sheet

MEURJune 30,

2013June 30,

2012

Goodwill and other intangible non-current assets 502.1 511.2

Tangible non-current assets and other non-current assets 284.2 269.8

Inventories and work in progress 413.7 424.1

Receivables 443.4 432.1

Cash and cash equivalents 96.9 216.7

Shareholders’ equity 694.4 702.1

Interest bearing liabilities 550.6 673.7


- Long-term 373.1 414.6

- Current 177.5 259.1

Other liabilities 495.3 478.1

Total 1,740.3 1,853.9

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• Heikki Takala, President and CEO, tel. +358 9 7257 8210

Contact information

• Jussi Siitonen, CFO, tel. +358 9 7257 8212

• Samppa Seppälä, Corporate Communications and IR,tel. +358 9 7257 8233

www.amersports.com


www.amersports.compDisclaimerStatements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, areforward-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.

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