7/29/2015

Amer Sports Q2/2015

Broad-based improvement
and acceleration
July 29, 2015 - Heikki Takala, President and CEO

Broad-based organic growth driven by
strategic growth areas
• Net sales EUR 461.1 million (376.1), +9% in local currencies
–
–
–
–

Excluding Louisville Slugger acquisition, net sales increased by 7%
Growth driven by Footwear (+16%), Sports Instruments (+11%) and Apparel (+10%)
EMEA +6%, Americas +12%, APAC +13%
B2C +45%

• Gross margin 44.1% (43.9%)
• EBIT excl. NRI EUR -9.0 million (-17.6), driven especially by Ball Sports
– Significant acceleration investment in digital

• Free cash flow EUR 11.5 million (-38.7)
• Integration of Louisville Slugger and Sports Tracker ongoing. Acquisition of
Queenax (functional fitness) announced today.

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29 July 2015

Amer Sports Interim Report Presentation

1

 7/29/2015

Balance sheet
EUR million

June 30, 2015

Free cash flow

Dec. 31, 2014

11.5

-38.7

53.5

Net debt

546.3

455.0

419.1

Shareholders’ equity

804.4

719.7

842.8

Capital employed

3

June 30, 2014

1,350.7

1,174.7

1,261.9

Working capital

460.6

416.8

495.4

Net debt/equity

0.68

0.63

0.50

Equity ratio, %

37.7

40.6

38.8

29 July 2015

Amer Sports Interim Report Presentation

Outdoor Q2/2015 (Q2/2014)
EBIT excluding
non-recurring items

Net sales
MEUR

MEUR

100

500
450
400
350
300
250
200
150
100
50
0

80
60

133.4

150.9

168.7

174.8

209.7

40
20
0

-15.1

-25.4

-27.1

-22.0

-18.7

-20

Q2/11

Q2/12

Q2/13

Q2/14

Q2/15

-40

Q2/11

Q2/12

Q2/13

Q2/14

Q2/15

Net sales +13%
•
•
•
•

Footwear +16%, Apparel +10%
Winter Sports Equipment pre-orders -3%
Cycling at previous year’s level. Rider equipment +11%
Sports Instruments +11%

EBIT excl. NRI EUR -18.7 million (-22.0)

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29 July 2015

Amer Sports Interim Report Presentation

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 7/29/2015

Ball Sports Q2/2015 (Q2/2014)
EBIT excluding
non-recurring items

Net sales
MEUR
180

160
140

MEUR

169.4
136.3

146.5

144.2

136.2

25
20

120

15

100
80

11.3
9.1

10

9.7

7.8
6.3

60

5

40
20

0

0

Q2/11

Q2/12

Q2/13

Q2/14

Q2/15

-5

Q2/11

Q2/12

Q2/13

Q2/14

Q2/15

Net sales +7%. Excluding Louisville Slugger, net sales at previous year’s level.
• Momentum in performance tennis rackets, offset by a decline in low margin items
• Growth in baseball, American football and basketball

EBIT excl. NRI EUR 11.3 million (6.3)
• Restructuring contributing positively, mix shifting toward higher margin items

Now acceleration in selected growth areas

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29 July 2015

Amer Sports Interim Report Presentation

Fitness Q2/2015 (Q2/2014)
Net sales

EBIT excluding
non-recurring items

MEUR

MEUR

16

120

14

100

12

82.0

80

56.4

60

64.3

65.1

10
8
6

45.9

4.3

4

40

2

20

-0.3

1.0

Q2/11

Q2/12

4.1

5.1

0
-2

0

Q2/11

Q2/12

Q2/13

Q2/14

Q2/15

Q2/13

Q2/14

Q2/15

Net sales +6%, growth driven by Asia Pacific and EMEA
EBIT excl. NRI EUR 5.1 million (4.1)

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29 July 2015

Amer Sports Interim Report Presentation

3

 7/29/2015

We accelerate in Fitness:
Queenax acquisition
• Expands Precor portfolio into the functional training category
– Complements Precor’s strength and cardio offerings
– Enables Precor to offer complete package deals
– Functional training is one of the fastest growing segments in the commercial
fitness industry

• Acquisition has no material impact on Amer Sports 2015 financial
results

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29 July 2015

Amer Sports Interim Report Presentation

Outlook for 2015 unchanged
• 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.

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29 July 2015

Amer Sports Interim Report Presentation

4

 7/29/2015

Acceleration toward 2020

Clarify future direction,
build critical capabilities,
allocate resources and
reignite growth
• New strategy
• Transformation from
Hardgoods to ”Hybrid”
• Drive organic growth
• Operational excellence

~2010 – 2013

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29 July 2015

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

~2014 – 2016

Sales acceleration at accretive
profitability
Continuous portfolio
transformation towards:
• Faster growth
• Higher profitability
• Asset efficiency

~2017 – 2020

Amer Sports Interim Report Presentation

5

 7/29/2015

APPENDIX

Key figures
EUR million

Q2/15

Q2/14

H1/15 H1/14

2014

Net sales

461.1

376.1 1,037.0 877.6

2,228.7

Gross profit

203.5

165.0

Gross profit, % of net sales

44.1

43.9

45.1

44.1

43.9

EBIT excluding non-recurring items

-9.0

-17.6

24.6

3.0

168.3

2.4

0.3

7.6

-6.6

-1.2

-8.0

-1.2

-54.2

-15.6

-18.8

16.6

1.8

114.1

1.6

0.2

5.1

54.5

5.5

53.5

EBIT % excluding non-recurring items
Non-recurring items
EBIT
EBIT %
Free cash flow

12

29 July 2015

11.5

-38.7

467.7 387.3

979.0

Amer Sports Interim Report Presentation

6

 7/29/2015

Net sales and EBIT breakdown
NET SALES
(MEUR)

Q2/
2015

Q1/
2015

2014

Q4/
2014

Q3/
2014

Q2/
2014

Q1/
2014

2013

Q4/
2013

Q3/
2013

Q2/
2013

Q1/
2013

Outdoor

209.7

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

169.4

164.1

536.7

136.9

112.9

136.2

150.7

551.0

126.1

116.7

144.2

164.0

82.0

69.9

320.8

111.7

80.7

65.1

63.3

296.0

97.6

71.6

64.3

62.5

575.9 2,228.7

705.3

645.8

376.1

501.5

2,136.5

657.4

608.9

377.2

493.0

Q1/
2014

2013

Q4/
2013

Q3/
2013

Q2/
2013

Q1/
2013

Fitness
Total

461.1

EBIT
(MEUR)

Q2/
2015*

Q1/
2015*

Outdoor

-18.7

21.4

125.6

11.3

18.3

35.9

Ball Sports
Fitness

Q4/
2014* 2014*

Q3/
2014*

Q2/
2014*

55.0

83.1

-22.0

9.5

127.0

52.5

87.4

-27.1

14.2

12.5

3.9

6.3

13.2

27.0

3.9

-2.1

7.8

17.4

5.1

1.3

29.7

14.9

7.3

4.1

3.4

24.4

14.3

6.2

4.3

-0.4

Headquarters

-6.7

-7.4

-22.9

-4.7

-6.7

-6.0

-5.5

-23.5

-6.0

-9.0

-3.7

-4.8

Total

-9.0

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

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29 July 2015

Amer Sports Interim Report Presentation

Net sales by region

Q2/

Q1/

MEUR

2015

2015

EMEA

168.0

Americas
Asia
Pacific
Total

14

29 July 2015

Q4/

Q3/

Q2/

Q1/

2014

2014

2014

2014

270.6 1,064.0

336.9 321.9

156.1

249.1 1,025.2 338.6 301.6 144.5 240.5

224.7

230.2

874.3

270.1 249.0

166.0

189.2

68.4

75.1

290.4

74.9

54.0

63.2

705.3 645.8

376.1

461.1

2014

575.9 2,228.7

98.3

Q4/

Q3/

Q2/

Q1/

2013 2013 2013 2013 2013

839.4 229.3 237.2 177.6 195.3
271.9

89.5

70.1

55.1

57.2

501.5 2,136.5 657.4 608.9 377.2 493.0

Amer Sports Interim Report Presentation

7

 7/29/2015

Sales development by region Q2/2015
EMEA

Americas

MEUR Ch, %*
Outdoor

APAC

Total

MEUR

Ch, %*

MEUR

Ch, %*

MEUR

Ch, %*

119.1

9

56.9

18

33.7

20

209.7

13

Ball Sports

30.1

-9

118.8

13

20.5

-2

169.4

7

Fitness

18.8

10

49.0

1

14.2

22

82.0

6

168.0

6

224.7

12

68.4

13

461.1

9

Total

* Change in local currencies

Ball sports

Outdoor
16%

27%

12%

57%

209.7

169.4

Total

Fitness
17%

18%

15%
23%

82.0

70%

36%

461.1
60%

49%

68%
EMEA
15

Americas

APAC

29 July 2015

Amer Sports Interim Report Presentation

Free cash flow
150

100

50

0

Q1-13

Q2-13

Q3-13

Q4-13

Q1-14

Q2-14

Q3-14

Q4-14

Q1-15

Q2-15

-50

-100

-150

Free cash flow = Cash flow from operating activities - net capital expenditures (total capital expenditure less
proceeds from sale of assets)

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29 July 2015

Amer Sports Interim Report Presentation

8

 7/29/2015

Balance sheet
June 30,
2015

2014

Goodwill and other intangible non-current assets

592.6

486.9

Tangible non-current assets and other non-current assets

326.5

274.0

Inventories and work in progress

517.8

454.2

Receivables

584.5

472.1

Cash and cash equivalents

109.6

86.9

Shareholders’ equity

804.4

719.7

Interest bearing liabilities

655.9

541.9

- Long-term

480.8

358.0

- Current

175.1

183.9

Other liabilities
Total

17

June 30,

MEUR

29 July 2015

670.7

512.5

2,131.0

1,774.1

Amer Sports Interim Report Presentation

Next refinancing needs in H1 2016
• Cash EUR 109.6 million and
unused committed facilities
EUR 150 million
(June 30, 2015)
• Commercial paper program
EUR 500 million, of which EUR
20.0 million issued
• Scheduled repayments of
long-term loans in 2016
EUR 154.0 million
• Average interest rate of loan
portfolio 2.8%
(Dec 31, 2014 3.5%)

300,0

250,0

200,0
Bonds
150,0

Bank loans

100,0

Commercial
Papers
Other

50,0

0,0

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Amer Sports Interim Report Presentation

9

 7/29/2015

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

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Amer Sports Interim Report Presentation

www.amersports.com
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.

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Amer Sports Interim Report Presentation

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