Broad-based improvement and acceleration July 29, 2015 - Heikki - PDF document

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. 2 29 July 2015 Amer Sports Interim Report Presentation 1

7/29/2015 Balance sheet EUR million June 30, 2015 June 30, 2014 Dec. 31, 2014 Free cash flow 11.5 -38.7 53.5 Net debt 546.3 455.0 419.1 Shareholders’ equity 804.4 719.7 842.8 Capital employed 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 3 29 July 2015 Amer Sports Interim Report Presentation Outdoor Q2/2015 (Q2/2014) EBIT excluding Net sales non-recurring items MEUR MEUR 500 100 450 80 400 350 60 300 40 209.7 250 174.8 168.7 20 200 133.4 150.9 -15.1 -25.4 -27.1 -18.7 -22.0 150 0 100 -20 50 0 -40 Q2/15 Q2/11 Q2/12 Q2/13 Q2/14 Q2/15 Q2/11 Q2/12 Q2/13 Q2/14 Net sales +13% • Footwear +16%, Apparel +10% • Winter Sports Equipment pre-orders -3% • Cycling at previous year’s level. R ider equipment +11% • Sports Instruments +11% EBIT excl. NRI EUR -18.7 million (-22.0) 4 4 29 July 2015 29 July 2015 Amer Sports Interim Report Presentation 2

7/29/2015 Ball Sports Q2/2015 (Q2/2014) EBIT excluding Net sales non-recurring items MEUR MEUR 169.4 180 25 160 146.5 144.2 136.3 136.2 20 140 120 15 11.3 100 9.7 9.1 7.8 80 10 6.3 60 5 40 20 0 0 Q2/14 Q2/15 Q2/11 Q2/12 Q2/13 -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 5 5 29 July 2015 29 July 2015 Amer Sports Interim Report Presentation Fitness Q2/2015 (Q2/2014) EBIT excluding Net sales non-recurring items MEUR MEUR 16 120 14 100 12 82.0 10 80 64.3 65.1 8 56.4 60 5.1 6 45.9 4.1 4.3 4 40 1.0 -0.3 2 20 0 0 -2 Q2/11 Q2/12 Q2/13 Q2/15 Q2/15 Q2/14 Q2/11 Q2/12 Q2/13 Q2/14 Net sales +6%, growth driven by Asia Pacific and EMEA EBIT excl. NRI EUR 5.1 million (4.1) 6 6 29 July 2015 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 7 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. 8 29 July 2015 Amer Sports Interim Report Presentation 4

7/29/2015 Acceleration toward 2020 Sales acceleration at accretive profitability Deliver mid-term Clarify future direction, targets and prepare build critical capabilities, for acceleration Continuous portfolio allocate resources and transformation towards: reignite growth • • Sustainable Growth Model Faster growth • • Integration for scalable, Higher profitability • New strategy • synergistic platform: Asset efficiency • Transformation from acquisition readiness Hardgoods to ” Hybrid ” • Qualification of business cases • Drive organic growth for future acceleration • Operational excellence • On-going renewal and restructuring ~2010 – 2013 ~2014 – 2016 ~2017 – 2020 9 29 July 2015 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 203.5 165.0 467.7 387.3 979.0 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 EBIT % excluding non-recurring items 2.4 0.3 7.6 Non-recurring items -6.6 -1.2 -8.0 -1.2 -54.2 -15.6 -18.8 16.6 1.8 114.1 EBIT 1.6 0.2 5.1 EBIT % 11.5 -38.7 54.5 5.5 53.5 Free cash flow 12 29 July 2015 Amer Sports Interim Report Presentation 6

7/29/2015 Net sales and EBIT breakdown NET SALES Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2015 2015 2014 2014 2014 2014 2014 2013 2013 2013 2013 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 Fitness 82.0 69.9 320.8 111.7 80.7 65.1 63.3 296.0 97.6 71.6 64.3 62.5 Total 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5 2,136.5 657.4 608.9 377.2 493.0 EBIT Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2015* 2015* 2014* 2014* 2014* 2014* 2014 2013 2013 2013 2013 2013 Outdoor -18.7 21.4 125.6 55.0 83.1 -22.0 9.5 127.0 52.5 87.4 -27.1 14.2 Ball Sports 11.3 18.3 35.9 12.5 3.9 6.3 13.2 27.0 3.9 -2.1 7.8 17.4 Fitness 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 13 29 July 2015 Amer Sports Interim Report Presentation Net sales by region Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ MEUR 2015 2015 2014 2014 2014 2014 2014 2013 2013 2013 2013 2013 EMEA 168.0 270.6 1,064.0 336.9 321.9 156.1 249.1 1,025.2 338.6 301.6 144.5 240.5 Americas 224.7 230.2 874.3 270.1 249.0 166.0 189.2 839.4 229.3 237.2 177.6 195.3 Asia 68.4 75.1 290.4 98.3 74.9 54.0 63.2 271.9 89.5 70.1 55.1 57.2 Pacific Total 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5 2,136.5 657.4 608.9 377.2 493.0 14 29 July 2015 Amer Sports Interim Report Presentation 7

7/29/2015 Sales development by region Q2/2015 EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 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 Total 168.0 6 224.7 12 68.4 13 461.1 9 * Change in local currencies Ball sports Total Outdoor Fitness 12% 15% 16% 17% 57% 18% 36% 23% 27% 209.7 169.4 82.0 461.1 70% 60% 49% 68% EMEA Americas APAC 15 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) 16 29 July 2015 Amer Sports Interim Report Presentation 8

7/29/2015 Balance sheet June 30, June 30, MEUR 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 670.7 512.5 Total 2,131.0 1,774.1 17 29 July 2015 Amer Sports Interim Report Presentation Next refinancing needs in H1 2016 300,0 • Cash EUR 109.6 million and unused committed facilities EUR 150 million 250,0 (June 30, 2015) • Commercial paper program 200,0 Bonds EUR 500 million, of which EUR 20.0 million issued Bank loans 150,0 • Scheduled repayments of long-term loans in 2016 Commercial EUR 154.0 million Papers 100,0 Other • Average interest rate of loan portfolio 2.8% 50,0 (Dec 31, 2014 3.5%) 0,0 18 29 July 2015 Amer Sports Interim Report Presentation 9