AMER SPORTS Q3/2013 Good momentum continued, solid growth in - PowerPoint PPT Presentation

AMER SPORTS Q3/2013 Good momentum continued, solid growth in strategic focus areas October 24, 2013, Heikki Takala, President and CEO

Good quarter, challenged by currencies • Net sales EUR 608.9 million (601.9), +7% in local currencies - Apparel +19%, Sports Instruments +15%, Footwear +11% Fitness +10% and Team Sports +10%, Winter Sports Equipment -3% - EMEA +8%, Americas +4%, APAC +18%, Emerging markets +15%, business to consumers +12 % • Gross margin 45.0% (45.3%) - Improvement in Winter Sports Equipment and Fitness was offset by higher in-bound freight and negative FX impact, especially Japanese yen • EBIT EUR 82.5 million or 13.5% of net sales (81.3 million or 13.5%) - Sales volumes up EUR 17 million - Gross margin down by 3 million - OPEX up EUR 13 million related to higher distribution expenses and investments 2 Amer Sports Interim Report Presentation

Business area net sales MEUR Q3/ 2013 Q3/2012 Ch % Ch %* 2012 Winter Sports Equipment 151.6 163.7 -7 -3 425.0 Footwear 100.0 92.9 8 11 314.4 Apparel 105.4 95.0 11 19 248.6 Cycling 33.1 31.3 6 8 129.0 Sports Instruments 30.5 28.1 9 15 104.2 65.3 72.1 -9 -3 Individual Ball Sports 318.8 Team Sports 51.4 49.8 3 10 250.9 Fitness 71.6 69.0 4 10 273.1 Total 608.9 601.9 1 7 2,064.0 * Change in local currencies 3 Amer Sports Interim Report Presentation

Q3 cash flow reflects good topline momentum EURm 150 125 100 75 50 25 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 -25 -50 -75 -100 -125 -150 4 Amer Sports Interim Report Presentation

Balance sheet remains healthy EUR million Sep 30, 2013 Sep 30, 2012 Dec. 31, 2012 Net debt 573.4 539.3 434.3 Shareholders’ equity 729.4 740.2 731.8 Capital employed 1,302.8 1,279.5 1,166.1 Working capital 551,3 515,3 400.1 Gearing, % 79 73 59 Equity ratio, % 38 38 39 5 Amer Sports Interim Report Presentation

No significant long-term refinancing needs 175m • Cash EUR 71.3 million and unused committed facilities 150m EUR 240 million (September 29, 2013) 125m • Commercial paper program 100m EUR 500 million, of which 75m EUR 172.8 million issued 50m • Scheduled long-term payments in 2013 EUR 37.1 25m million and in 2014 EUR 62.7 million 0m 2013 2014 2015 2016 2017=> • Average interest rate of the loan portfolio 3.4% (3.6) Pension Loan Bonds Bank loans Commercial Papers Other 6 Amer Sports Interim Report Presentation

Foreign currency impacts Transaction difference Translation difference • Net buyer of USD due to sourcing in • Translation differences mainly from Asia (USD denominated) USD/EUR, recently also from YEN/EUR and RUB/EUR • Weakening USD vs. EUR has a positive transaction impact on EBIT, with a • Weakening USD, YEN and RUB vs. certain delay due to the hedges EUR has a negative P&L translation • The next 12 month net USD flow impact exposed to EUR/USD differences is approx. USD 400 million • Change in local currency: Translation • At the end of Q3/2013 all 2013 impact eliminated EUR/USD cash flows are hedged at • Example: Japan YTD double-digit 1.31 and 90% of 2014 flows at 1.33 growth in local currencies, negative in • Net seller in all other main currencies reported currencies (CAD, CHF, GBP, RUB and JPY) with net flows of EUR 30-50 million Amer Sports Interim Report Presentation

Winter and Outdoor Q3/2013 (Q3/2012) Net Sales EBIT excluding non-recurring items EURm EURm 500 100 86.8 87.4 79.3 420.6 411.0 395.7 75 400 58.2 300.3 50 300 25 200 0 100 -25 0 -50 Net sales +7% in local currencies • Winter Sports Equipment -3% due to shift in pre-order shipments to Q4 • Footwear +11%, Apparel +19%, Cycling +8%, Sports Instruments +15% EBIT EUR 87.4 million (86.8 million) • Sales volumes up EUR 14 million offset by lower gross margin of EUR 4 million and higher distribution driven operating expenses of EUR 10 million • Gross margin negatively affected by higher in-bound freight costs and currency impact, especially Japanese yen 8 Amer Sports Interim Report Presentation

Ball Sports Q3/2013 (Q3/2012) Net Sales EBIT excluding non-recurring items EURm EURm 200 25 20 150 121.9 15 116.7 114.0 106.7 100 10 3.5 5 50 0 -1.1 0 -5 -2.1 -2.6 Net sales +3% in local currencies • Individual Ball Sports -3%, driven by a decline in tennis racquets partially offset by strong growth in tennis balls • Team Sports +10%, driven by strong growth in baseball bats (+28%) EBIT EUR -2.1 million (-2.6 million ) 9 Amer Sports Interim Report Presentation

Fitness Q3/2013 (Q3/2012) EBIT excluding non-recurring items Net Sales EURm EURm 100 10 6.2 80 71.6 69.0 4.2 5 56.8 60 52.6 2.8 2.8 40 0 20 0 -5 Net sales +10% in local currencies • Sales growth was particularly strong in the Americas and Asia Pacific • Commercial business +9%, consumer business +14% EBIT EUR 6.2 million (4.2 million ) • Increased sales volumes and improved gross margins partially offset by higher distribution expenses 10 Amer Sports Interim Report Presentation

OUTLOOK

Outlook for 2013 unchanged • 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 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. 12 Amer Sports Interim Report Presentation

Prioritized, sequenced program Repeatable business model Build critical capabilities, allocate resources and 2013 – reignite growth • Grow the core Clarify future direction & ~2011...2012 • Hardgoods deliver the year • Big countries • Build capabilities: ~2010 • Add more • Softgoods • Softgoods • Category-based • Clarify priorities, set • Emerging markets development direction • Own retail • Go to Market • Continue to drive profit • Learn for future • Drive organic growth: • Next growth recovery, deliver the year Softgoods, Russia, China, categories • Continue the work on B2C, etc. (accessories, action operational efficiency & sports, Digital) • Operational excellence, WSE margins improvement efficiency & profitability Amer Sports Interim Report Presentation

APPENDIX

Key figures Q3/13 Q3/12 1-9/13 1-9/12 2012 EUR million Net sales 608.9 601.9 1,479.1 1,445.5 2,064.0 Gross profit 273.9 272.9 655.9 641.7 900.6 Gross profit, % of net sales 45.0 45.3 44.3 44.4 43.6 EBIT excluding non-recurring items 82.5 81.3 90.2 91.7 138.7 EBIT % excluding non-recurring items 13.5 13.5 6.1 6.3 6.7 Non-recurring items - - - -24.8 EBIT 82.5 81.3 90.2 91.7 113.9 EBIT % 13.5 13.5 6.1 6.3 5.5 Net cash flow after investing activities -119.6 -78.1 -101.4 -24.9 71.8 16 Amer Sports Interim Report Presentation

Foreign currency translation difference EUR million Q3-2013 Q3-2012 Local Translation Business Area Reported Reported currency Difference Winter Sports Equipment 151.6 163.7 156.4 -7.3 Footwear 100.0 92.9 89.8 -3.1 Apparel 105.4 95.0 88.4 -6.6 Cycling 33.1 31.3 30.6 -0.7 Sports Instruments 30.5 28.1 26.6 -1.5 Winter & Outdoor 420.6 411.0 391.9 -19.1 Individual Ball Sports 65.3 72.1 67.3 -4.8 Team Sports 51.4 49.8 46.6 -3.2 Ball Sports 116.7 121.9 113.9 -8.0 Fitness 71.6 69.0 65.2 -3.8 Total 608.9 601.9 571.0 -30.9 Amer Sports Interim Report Presentation

Net sales and EBIT breakdown (MEUR) NET Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ SALES 2013 2013 2013 2012 2012 2012 2012 2012 2011 2011 2011 2011 2011 Winter and Outdoor 420.6 168.7 266.5 1,221.2 402.8 411.0 150.9 256.5 1,137.6 375.0 395.7 133.4 233.5 Ball Sports 116.7 144.2 164.0 569.7 127.7 121.9 146.5 173.6 511.0 109.0 106.7 136.3 159.0 Fitness 71.6 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 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1 Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ EBIT 2013 2013 2013 2012* 2012* 2012 2012 2012 2011 2011 2011 2011 2011 Winter and 113.8 41.7 Outdoor 87.4 -27.1 14.2 86.8 -25.4 10.7 118.5 45.0 79.3 -15.1 9.3 Ball Sports -2.1 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 6.2 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 -9.0 -3.7 -4.8 -20.1 -3.6 -7.1 -4.5 -4.9 -18.3 -2.5 -6.6 -4.6 -4.6 Total 82.5 -18.7 26.4 138.7 47.0 81.3 -19.2 29.6 135.5 46.3 74.4 -10.9 25.7 * Excluding non-recurring items 18 Amer Sports Interim Report Presentation

Net sales by region Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ MEUR 2013 2013 2013 2012 2012 2012 2012 2012 2011 2011 2011 2011 2011 EMEA 301.6 144.5 240.5 962.7 305.3 297.6 133.1 226.7 917.6 273.8 300.0 129.7 214.1 Americas 237.2 177.6 195.3 834.1 224.8 236.2 167.4 205.7 742.1 205.4 203.8 146.5 186.4 Asia Pacific 70.1 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 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1 19 Amer Sports Interim Report Presentation