amer sports q3/2016 solid improvement in a …...balance sheet in a nutshell 6 20 october 2016 amer...

Amer Sports Q3/2016

Solid improvement in a challenging marketOctober 20, 2016 – Heikki Takala, President and CEO

Organic growth 4%, driven by strategic acceleration priorities

• Net sales EUR 736.8 million (713.7), +4%*, also organic growth 4%

– Apparel +11%, Business to Consumer +28%, China +21%, Sports

Instruments +23%.

– Ball Sports flat, Team Sports +9%. Fitness -4%, pipeline impact yet

to come.

– EMEA +7%, Americas +1%, APAC +3%.

• Gross margin 48.0% (47.0%)

• EBIT excl. IAC EUR 106.5 million (103.5)

• Free cash flow EUR -66.9 million (-92.2)

20 October 2016 Amer Sports Interim Report Presentation2

*In local currencies

Investment into acceleration continues

• Digital acceleration: investment into marketing automatization

and cloud-based CRM platform

• New stores in Q3: US (New York, Chicago), China (Shanghai),

Mexico

• More to come in Q4: US, China, Italy

• Continuous e-commerce expansion: Arc’teryx & Suunto Japan,

Salomon & Suunto Canada, Mavic US

• Distribution capacity expansion continued

• Significant investment into future product pipeline and learning:

Wilson X, Suunto future variants, Precor expansion…


New Arc’teryx stores in the US and Canada


Toronto

Yorkdale

Veilance Pop-up store, New YorkChicago

Free Cash Flow in Q3: EUR 25 million better than Q3/15

• Free Cash Flow always negative in Q3 due to seasonality. Strict Working

Capital management was a main driver of better cash flow than year ago.


EURm

Balance sheet in a nutshell


EUR million Sept. 30, 2016 Sept. 30, 2015 Dec. 31, 2015

Net debt 666.9 616.6 460.3

Shareholders’ equity 913.7 886.4 949.6

Capital employed 1,580.6 1,503.0 1,409.9

Working capital 568.8 637.1 462.5

Capital turnover, LTM 1.78X 1.81X 1.90X

ROCE, LTM % 15.2 15.2 16.1

Net debt/equity 0.73 0.70 0.48

Equity ratio % 35.3 36.6 37.2

LTM = Last Twelve Months


-40

-20

0

20

40

60

80

100

120

EBIT excluding items affecting comparability

0

100

200

300

400

500

600

Net sales

Outdoor Q3/2016 (Q3/2015)

20 October 20167

MEURMEUR

86.8

Q3/12 Q3/12Q3/13

411.0

Q3/13

87.4

Q3/14

420.6

Q3/14

Net sales EUR 505.7 million, +6%*

• Apparel +8%, Footwear +4%, Sports Instruments +23%

• Cycling +9%. Acquisition of ENVE Composites LLC.

• Winter Sports Equipment 3%. Deliveries peaked already in Q3.

EBIT excl. IAC EUR 105.5 million (92.9)

Q3/15

433.7

Q3/15

83.1

Q3/16

476.6

Q3/16

92.9505.7105.5


-5

0

5

10

15

20

25


Ball Sports Q3/2016 (Q3/2015)

Net sales EUR 147.0 million, at previous year’s level*

• Strong Team Sports sales growth driven especially by Baseball. Challenging

market conditions in Individual Ball Sports.

• Investment into Wilson X, B2C, new Go to Market model.


20 October 2016 Amer Sports Interim Report Presentation8 20 October 20168

MEUR

Q3/12 Q3/13 Q3/14

5.3

Q3/15

-2.1-2,6

3.9

Q3/160

20

40

60

80

100

120

140

160

180

200

Net salesMEUR

Q3/12

116.7

Q3/13 Q3/14

112.9121.9

Q3/15 Q3/16

147.8

8.8


147.0

Fitness Q3/2016 (Q3/2015)

Net sales EUR 84.1 million, -4%*

• New product pipeline all time high. Production of the new ranges started,

topline impact expected in Q4 and increasingly in H1 2017.


20 October 2016 Amer Sports Interim Report Presentation9 20 October 20169

0

20

40

60

80

100

120

140

Net sales

MEUR

Q3/12 Q3/12

69.0

Q3/13 Q3/13Q3/14 Q3/15

71.6

Q3/14

80.7

Q3/15Q3/16

89.3

Q3/16-5

0

5

10

15

20


4.2 5.46.27.3

9.184.1


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.

Prioritized, sequenced program continues

Transformation and acceleration toward 2020

13

Net sales ≥3.5 BEUR,

improving EBIT-%

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

Turnaround

Net sales

1.5 BEUR,

EBIT-% 4%

Net sales 2+ BEUR,

EBIT-% 7%

Net sales ~2.5 BEUR,

EBIT-% toward 10%

Amer Sports Interim Report Presentation

Sustainable Growth Model

and

acquisition readiness

Acceleration and

scaling up,

transformation of

company profile

continues

20 October 2016

APPENDIX

Net sales and EBIT breakdown

20 October 201616

* Excl. IAC

NET

SALES

(MEUR)

Q3/

2016

Q2/

2016

Q1/

2016 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015 2014

Q4/

2014

Q3/

2014

Q2/

2014

Q1/

2014

Outdoor 505.7 231.0 374.4 1,530.1 501.9 476.6 209.7 341.9 1,371.2 456.7 452.2 174.8 287.5

Ball Sports 147.0 165.5 186.7 647.0 165.7 147.8 169.4 164.1 536.7 136.9 112.9 136.2 150.7

Fitness 84.1 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 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5

EBIT

(MEUR)

Q3/

2016*

Q2/

2016

Q1/

2016* 2015*

Q4/

2015

Q3/

2015

Q2/

2015*

Q1/

2015* 2014*

Q4/

2014*

Q3/

2014*

Q2/

2014*

Q1/

2014

Outdoor 105.5 -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 5.3 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 5.4 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 -9.7 -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 106.5 -12.1 46.0 212.1 84.0 103.5 -9.0 33.6 168.3 77.7 87.6 -17.6 20.6


Business area net sales


Q3/2016 Q3/2015 Ch % Ch %* 2015

Footwear 144.6 141.2 2 4 461.2

Apparel 146.3 135.4 8 8 387.2

Winter Sports Equipment 140.5 136.2 3 3 400.2

Cycling 34.3 31.2 10 9 138.5

Sports Instruments 40.0 32.6 23 23 143.0

Individual Ball Sports 63.2 70.4 -10 -10 315.4

Team Sports 83.8 77.4 8 9 331.6

Fitness 84.1 89.3 -6 -4 357.3

Total 736.8 713.7 3 4 2,534.4

*Change in local currencies

Net sales by region

20 October 201618

MEUR

Q3/

2016

Q2/

2016

Q1/

2016 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015 2014

Q4/

2014

Q3/

2014

Q2/

2014

Q1/

2014

EMEA 334.7 174.8 278.9 1,114.7 356.8 319.3 168.0 270.6 1,064.0 336.9 321.9 156.1 249.1

Americas 304.6 229.8 267.1 1,070.1 313.2 302.0 224.7 230.2 874.3 270.1 249.0 166.0 189.2

Asia

Pacific 97.5 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 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5


Outdoor

Sales development by region in Q3/2016

20 October 2016Amer Sports Interim Report Presentation

19

Fitness Total

EMEA Americas APAC

Ball Sports

EMEA Americas APAC Total

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

Outdoor 291.7 9 149.4 3 64.6 4 505.7 6

Ball Sports 22.5 -6 106.7 2 17.8 -4 147.0 0

Fitness 20.5 -4 48.5 -6 15.1 0 84.1 -4

Total 334.7 7 304.6 1 97.5 3 736.8 4

* Change in local currencies

505.7 147.0 84.1 736.8

13%

68%

12%15%

73%

18%24%

58%

13%46%

41%

58%

29%

Balance sheet


MEUR

September 30,

2016

September 30,

2015

Goodwill and other intangible non-current assets 669.6 599.5

Tangible non-current assets and other non-current assets 342.5 320.4

Inventories and work in progress 558.0 511.5

Receivables 772.0 775.4

Cash and cash equivalents 244.9 216.8

Shareholders’ equity 913.7 886.4

Interest bearing liabilities 911.8 833.4

- Long-term 834.9 631.4

- Current 76.9 202.0

Other liabilities 761.5 703.8

Total 2,587.0 2,423.6

Refinancing needs well covered


• Cash EUR 244.9 million and

unused committed facilities

EUR 150 million (Sep 30,

2016)

• Commercial paper program in

size of EUR 500 million; out

of which EUR 74.9 million

utilized

• No scheduled repayments of

long-term loans in 2016 or in

2017.

• Average interest rate of loan

portfolio 2.0% (Sep 30, 2015

2.6%)0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

Bonds

Bank loans

CommercialPapers

Other

Hedged flows, next 12 months

Amer Sports Interim Report Presentation22

Main FX pairs

Next 12mth

flow

(MEUR)

of which

hedged

Spot

(@19.10.16)

Hedge

FX ’16

Hedge

FX’17

USD purchases against EUR -371 97% 1.10 1.15 1.14

USD sales against EUR +71 100% 1.10 1.13 1.12

GBP sales against EUR +91 100% 0.89 0.74 0.78

CHF sales against EUR +55 100% 1.09 1.05 1.08

USD purchases against CAD -107 100% 1.31 1.31 1.32

Impact of new ESMA guidelines

New ESMA (European Securities and Markets Authority) guidelines

on Alternative Performance Measures (APMs) are effective for the

financial year 2016. Amer Sports presents APMs to reflect the

underlying business performance and to enhance comparability

between financial periods. APMs should not be considered as a

substitute for measures of performance in accordance with the IFRS.

As of Q1 2016, Amer Sports relabels the previously referenced

"excluding non-recurring items" with "excluding items affecting

comparability” (IAC). Operating segments’ EBIT is reported excluding

IAC. Items affecting comparability and APMs used by Amer Sports

are defined in note 10 of the Q2 interim report.


Changes to Amer Sports Insider Register and Disclosure Policy as of July 3, 2016

Notification and publication of transactions of managers and

their closely associated persons

• The following persons have been deemed to discharge managerial

responsibilities in Amer Sports:

– Members and secretary of the Board of Directors

– CEO

– Members of the Executive Board


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

20 October 201625 Amer Sports Interim Report Presentation

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

20 October 201626 Amer Sports Interim Report Presentation

amer sports q3/2016 solid improvement in a …...balance sheet in a nutshell 6 20 october 2016 amer...

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