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Amer Sports Q3/2014

Solid growth and improvement in Q3 October 23, 2014 – Heikki Takala, President and CEO

Solid growth and improvement in Q3

• Net sales EUR 645.8 million (608.9), +6%

– Footwear +19%, Apparel +14%, Fitness +12% and Sports Instruments +12%

– Winter Sports Equipment stable: phasing of deliveries

– Ball Sports -3%: continuous clean-up of unprofitable sales

– EMEA +6%, Americas +6%, APAC +8%

– Own retail +44%, ecommerce +87%

• Gross margin 44.7% (45.0%)

– Earlier phasing of lower margin deliveries in Winter Sports Equipment, adverse

margin development in Russia

• EBIT excl. NRI EUR 87.6 million (82.5)

– Broad-based improvement, first impact of Ball Sports turnaround visible

– EUR -18.3 million NRI related to the restructuring program announced in July

• Free cash flow EUR -84.8 million (-119.3)

23 October 2014 Amer Sports Interim Report Presentation 2

Balance sheet


EUR million

September 30,

2014

September 30,

2013

December 31,

2013

Free cash flow -84.8 -119.3 42.5

Net debt 530.4 573.4 431.7

Shareholders’ equity 807.0 729.4 761.3

Capital employed 1,337.4 1,302.8 1,193.0

Working capital 585.0 551.3 457.2

Gearing, % 66 79 57

Equity ratio, % 39 38 38


-40

-20

0

20

40

60

80

100

EBIT excluding non-recurring items

0

50

100

150

200

250

300

350

400

450

500

Net sales

Winter and Outdoor Q3/2014 (Q3/2013)

23 October 2014 4

MEUR MEUR

395.7 86.8

79.3

Q3/11 Q3/11 Q3/12

411.0

Q3/12

87.4

Q3/13

420.6

Q3/13

Net sales +9%

• Winter Sports Equipment at previous year’s level

• Improved agility in our supply chain

• Footwear +19%, Apparel +14%

• Cycling -2%

• Sports Instruments +12%

EBIT excl. NRI EUR 83.1 million (87.4), mainly due to phasing related lower gross

margin in Winter Sports Equipment and adverse impact from Russia

Q3/14

452.2

Q3/14

83.1


Ball Sports Q3/2014 (Q3/2013)

23 October 2014 5

0

20

40

60

80

100

120

140

160

180

Net sales

-5

0

5

10

15

20

25

EBIT excluding non-recurring items MEUR MEUR

-1.1

Q3/11 Q3/11

116.7

Q3/12 Q3/12 Q3/13

-2.6

Q3/13

112.9

Q3/14

3.9

1. Early positive impact of the new turnaround strategy – Gross margin up, slight OPEX reduction

– EBIT excl. NRI EUR 3.9 million (-2.1)

2. Net sales -3%, in line with plan – Individual Ball Sports -6%: continuous clean-up of unprofitable sales

– Team Sports’ net sales at previous year’s level

3. Now solidifying gross margins and working on re-igniting growth

106.7 121.9

Q3/14

-2.1


Fitness Q3/2014 (Q3/2013)

23 October 2014 6

0

20

40

60

80

100

120

Net sales

-2

0

2

4

6

8

10

12

14

16

EBIT excluding non-recurring items MEUR

MEUR

56.8

4.2

Q3/11 Q3/11

69.0

Q3/12 Q3/12 Q3/13

6.2

Q3/14

71.6 7.3

Q3/13

Net sales +12%, strong growth in Americas and APAC

EBIT excl. NRI EUR 7.3 million (6.2) due to sales growth, offset by some

strategic OPEX increase (distributor consolidation in the US)

80.7

Q3/14

2.8

Outlook for 2014


• Amer Sports expects global trading conditions to remain challenging, with

some regional improvements.

• In 2014, 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 excluding non-recurring items to improve from 2013.

• The company will continue to focus on the growth of Apparel and

Footwear, consumer-driven product and marketing innovation, commercial

expansion and operational excellence.

Prioritized, sequenced program continues


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

Key figures


EUR million Q3/14 Q3/13 1-9/14 1-9/13 2013

Net sales 645.8 608.9 1,523.4 1,479.1 2,136.5

Gross profit 288.5 273.9 675.8 655.9 932.2

Gross profit, % of net sales 44.7 45.0 44.4 44.3 43.6

EBIT excluding non-recurring items 87.6 82.5 90.6 90.2 154.9

EBIT % excluding non-recurring items 13.6 13.5 5.9 6.1 7.3

Non-recurring items -18.3 - -19.5 - -

EBIT 69.3 82.5 71.1 90.2 154.9

EBIT % 10.7 13.5 4.7 6.1 7.3

Net cash flow after investing activities -84.8 -119.3 -79.3 -101.4 42.5

Net sales and EBIT breakdown (MEUR)


NET SALES

Q3/

2014

Q2/

2014

Q1/

2014 2013

Q4/

2013

Q3/

2013

Q2/

2013

Q1/

2013 2012

Q4/

2012

Q3/

2012

Q2/

2012

Q1/

2012

Winter and

Outdoor 452.2 174.8 287.5 1,289.5 433.7 420.6 168.7 266.5 1,221.2 402.8 411.0 150.9 256.5

Ball Sports 112.9 136.2 150.7 551.0 126.1 116.7 144.2 164.0 569.7 127.7 121.9 146.5 173.6

Fitness 80.7 65.1 63.3 296.0 97.6 71.6 64.3 62.5 273.1 88.0 69.0 56.4 59.7

Total 645.8 376.1 501.5 2,136.5 657.4 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8

EBIT

Q3/

2014*

Q2/

2014*

Q1/

2014 2013

Q4/

2013

Q3/

2013

Q2/

2013

Q1/

2013 2012*

Q4/

2012*

Q3/

2012

Q2/

2012

Q1/

2012

Winter and

Outdoor 83.1 -22.0 9.5 127.0 52.5 87.4 -27.1 14.2 113.8 41.7 86.8 -25.4 10.7

Ball Sports 3.9 6.3 13.2 27.0 3.9 -2.1 7.8 17.4 28.0 1.0 -2.6 9.7 19.9

Fitness 7.3 4.1 3.4 24.4 14.3 6.2 4.3 -0.4 17.0 7.9 4.2 1.0 3.9

Headquarters -6.7 -6.0 -5.5 -23.5 -6.0 -9.0 -3.7 -4.8 -20,1 -3.6 -7.1 -4.5 -4.9

Total 87.6 -17.6 20.6 154.9 64.7 82.5 -18.7 26.4 138.7 47.0 81.3 -19.2 29.6

* Excluding non-recurring items

-150

-100

-50

0

50

100

150

Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14

Q3 cash flow follows the seasonal pattern


MEUR

Balance sheet


MEUR

Sep 30,

2014

Sep 30,

2013

Goodwill and other intangible non-current assets 499.2 492.2

Tangible non-current assets and other non-current assets 291.3 286.7

Inventories and work in progress 473.8 412.2

Receivables 684.9 662.0

Cash and cash equivalents 109.6 71.3

Shareholders’ equity 807.0 729.4

Interest bearing liabilities 640.0 644.7

- Long-term 361.3 373.6

- Current 278.7 271.1

Other liabilities 611.8 550.3

Total 2,058.8 1,924.4

Mid-term refinancing needs covered


• Cash EUR 109.6 million and

unused committed facilities

EUR 240 million (September

30, 2014)

• Commercial paper program

EUR 500 million, of which EUR

114.5 million issued

• Scheduled long-term payments

in 2014 EUR 6.2 million and in

2015 EUR 156.2 million

• Average interest rate of loan

portfolio 3.6% (3.4%)

0

50

100

150

200

250

300

Bonds

Bank loans

Pension Loan

Commercial Papers

Other

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


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.

www.amersports.com


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