AMER SPORTS 2012 – RECORD SALES, STABLE PROFIT, BIG FOCUS ON FUTURE IMPROVEMENT January 31, 2013, Heikki Takala, President and CEO
Content 1) October-December 2012 2) Full year 2012 3) Outlook 4) We continue moving 2 Amer Sports Results Presentation
Q4 AND FULL YEAR 2012
Broad-based growth in Q4, Winter Sports Equipment challenge continued • Net sales EUR 618.5 million (556.9), +8% in local currencies - Sports Instruments +25%, Footwear +17%, Fitness +17%, Ball Sports +13%, Apparel +12%, Cycling +7% - Winter Sports Equipment sales -3%. In-season orders increased vs. Q4/2011. - EMEA +10%, Americas +5%, APAC +12% • Gross margin 41.9% (42.4%): inventory sell-out and production variances especially in Winter Sports Equipment • EBIT excluding NRI EUR 46.5 million (46.3), impacted by the lower gross margin - Restructuring: expected savings as of end 2014 EUR 20 million, one-time cost EUR 24.8 million • Net cash flow EUR 96.7 million (49.0), driven by decreased working capital. In local currencies 4 Amer Sports Results Presentation
2012: a good but highly challenging year • Record net sales EUR 2,064.0 million (1,880.8), +5.1% in local currencies - Apparel +23%, Sports Instruments +12%, Fitness +10%, Cycling +5%, Ball Sports +5% (Racquet Sports +8%) - Footwear +7%, despite slow-down in Europe - Winter Sports Equipment -8%, mid-single digit profitability safeguarded despite the weather - EMEA +4%, Americas +5%, APAC +14%. Russia +16%, China +44%, Latin America +13%, accounting for 8% of the Group’s net sales (7%). • Gross margin 43.6% (43.5%) • EBIT excluding NRI EUR 136.5 million (135.5), EBIT margin 6.6 (7.2) - Mitigated poor winter, strategic OPEX investments continued • Dividend proposal EUR 0.35 per share (0.33) In local currencies 5 Amer Sports Results Presentation
Cash flow improved significantly in 2012 EUR million 2012 2011 Ch % Ch %* Net sales 2,064.0 1,880.8 10 5 Gross profit 900.6 817.4 10 6 Gross profit, % of net sales 43.6 43.5 EBIT excluding non-recurring items 136.5 135.5 1 EBIT % excluding non-recurring items 6.6 7.2 Non-recurring items -24.8 - EBIT total 111.7 135.5 -18 Net cash flow after investing activities 71.8 -21.4 *) In local currencies 6 Amer Sports Results Presentation
EBIT development 2012, EUR million 200 200 5.1 53.1 43.6 180 180 160 160 6.7 4.0 5.4 136.5 136.5 140 135.5 140 135.5 4.7 3.0 120 120 100 100 80 80 60 60 40 40 20 20 0 0 FY 2011 Growth Margin/ OPEX FX FY 2012 FY 2011 W&O Ball Fitness HQ FY 2012 Mix Sports 7 Amer Sports Results Presentation
Continuous investments into future growth EUR million 2012 2011 2010 Top line driven OPEX increase 10.3 19.1 9.2 Investment OPEX increase 31.9 26.1 15.7 Maintenance OPEX increase 10.9 3.7 16.2 Total increase in OPEX 53.1 48.9 41.1 In local currencies • Operating expenses increased by EUR 53 million in local currencies – Investments into future growth with focus on softgoods, sales coverage, emerging markets and business to consumer – Strong building blocks in place for future improvement – Cost base and complexity remain too high. Restructuring program being implemented, headcount impact ~250 by end 2014. 8 Amer Sports Results Presentation
Balance sheet remained healthy EUR million Dec. 31, 2012 Dec. 31, 2011 Net debt 434.3 391.6 Shareholders’ equity 758.9 829.4 Capital employed 1,193.2 1,221.0 Working capital 440.7 472.7 Net debt / EBITDA, excluding non-recurring items 2.5 2.3 Gearing, % 57 47 Equity ratio, % 40.7 45.6 • Hybrid bond redemption impact: equity ratio down 3%-pts, gearing up 12%-pts. 9 Amer Sports Results Presentation
No significant mid-term refinancing needs 225,0m • Cash EUR 142.5 million and unused committed 200,0m facilities EUR 240 million 175,0m (December 31, 2012) 150,0m • Commercial paper 125,0m program EUR 500 million, of which EUR 100,0m 151.6 million issued 75,0m • Scheduled long-term 50,0m payments in 2013 EUR 25,0m 42.3 million and in 2014 EUR 63.5 million. ,0m 2013 2014 2015 2016 • Average interest rate of loan portfolio 3.6% (3.6) Pension Loan Bonds Bank loans Commercial Papers Other 10 Amer Sports Results Presentation
Winter and Outdoor in 2012 (2011) EBIT excluding Net sales MEUR MEUR non-recurring items 416.5 100 450 402.8 375.0 400 80 329.2 61.2 350 60 42.5 45.0 41.7 300 40 250 200 20 150 0 100 -20 50 0 -40 Q4/09 Q4/10 Q4/11 Q4/12 Q4/09 Q4/10 Q4/11 Q4/12 Net sales +4% • Winter Sports Equipment -8%. • Footwear +7%. Sales in Russia, Americas and Asia Pacific continued to increase. • Apparel +23%. Both Salomon and Arc’teryx grew. • Cycling +5%. Softgoods +18%. • Sports Instruments +12% driven by stronger distribution and the Suunto GPS watch. EBIT excluding non-recurring items EUR 113.8 million (118.5) • Strategic OPEX investments continued. 11 Amer Sports Results Presentation
Ball Sports 2012 (2011) EBIT exluding Net sales MEUR MEUR non-recurring items 180 25 160 20 140 127.7 109.0 120 107.3 15 94.7 100 10 80 2.2 60 5 1.0 -2.7 -0.7 40 0 20 -5 0 Q4/09 Q4/10 Q4/12 Q4/11 Q4/12 Q4/09 Q4/10 Q4/11 Net sales +5% • Individual Ball Sports +7%. Tennis rackets +14%, tennis balls +6%. • Team Sports +3%. Growth throughout the Team Sports business with the exception of baseball bats. EBIT excluding non-recurring items EUR 28.0 million (25.0) • The improvement was driven by the sales growth 12 Amer Sports Results Presentation
Fitness 2012 (2011) EBIT excluding Net sales MEUR non-recurring items MEUR 10 7.9 100 8 88.0 72.9 6 4.5 4.5 80 4.3 58.9 59.6 4 60 2 0 40 -2 20 -4 0 -6 Q4/10 Q4/11 Q4/12 Q4/09 Q4/10 Q4/11 Q4/12 Q4/09 Net sales +10% • EMEA +28%, Asia Pacific +21% and the Americas +3% EBIT excluding non-recurring items EUR 17.0 million (10.3) • The increase was due to increased sales volumes 13 Amer Sports Results Presentation
OUTLOOK
Outlook for 2013 • 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. • In 2013, Amer Sports’ net sales in local currencies and EBIT excluding non-recurring items are expected to increase from 2012. 15 Amer Sports Results Presentation
WE CONTINUE MOVING
We continue to make solid progress in our strategic priorities • All businesses improving according to their portfolio role, further scale and synergy improvement plans identified • Softgoods sales EUR +600 million, accounting for 30% of the Group’s net sales • Our consumer marketing and product innovation pipeline increasingly focused on “surrounding the consumer” with head-to-toe solutions • Continuous improvement in Go to Market. Emerging markets now 8% of the company (2010: 5%). Own retail growing: 201 retail stores, 23 ecommerce stores. • All operations managed with scorecards and Key Performance Indicators, on-going improvements in customer service, sourcing, product quality and working capital 17 Amer Sports Results Presentation
Long-term financial targets - status Dec 31, Dec 31, Dec 31, Dec 31, Target 2009 2010 2011 2012 Growth Delivering organic, currency-neutral annual -4% 8% 9% 5% growth of 5% Profitability EBIT of at least 10% of net 3.2% 6.2% 7.2% 6.6% sales Cash flow Annual free cash flow equal FCF of Net FCF of Net FCF of Net FCF of Net to net profit Profit Profit Profit Profit 4.5 0.7 negative 0.9 Balance Year-end Net Debt / sheet EBITDA ratio of 3 or less 3.6 2.2 2.3 2.5 structure 18 Amer Sports Results Presentation
We stay the course Profitability, growth momentum Build critical capabilities, allocate resources and ~2013- reignite growth • Continued growth in Clarify future direction & ~2011...2012 categories and countries deliver the year • Big brands, big countries, • Build capabilities: ~2010 • Softgoods big categories • Category based development • Go to market • Clarify priorities, set direction • Drive organic growth: softgoods, Russia, China, BtoC, • Continue to drive profit etc. recovery, deliver the year • Operational excellence, WSE • Continue the work on efficiency & profitability operational efficiency & margins improvement 19 Amer Sports Results Presentation
APPENDIX
Recommend
More recommend
