challenging market October 20, 2016 Heikki Takala, President and CEO - PowerPoint PPT Presentation

Amer Sports Q3/2016 Solid improvement in a challenging market October 20, 2016 – Heikki Takala, President and CEO

Organic growth 4%, driven by strategic acceleration priorities • Net sales EUR 736.8 million (713.7), +4%*, also organic growth 4% – Apparel +11%, Business to Consumer +28%, China +21%, Sports Instruments +23%. – Ball Sports flat, Team Sports +9%. Fitness -4%, pipeline impact yet to come. – EMEA +7%, Americas +1%, APAC +3%. • Gross margin 48.0% (47.0%) • EBIT excl. IAC EUR 106.5 million (103.5) • Free cash flow EUR -66.9 million (-92.2) *In local currencies 2 20 October 2016 Amer Sports Interim Report Presentation

Investment into acceleration continues • Digital acceleration: investment into marketing automatization and cloud-based CRM platform • New stores in Q3: US (New York, Chicago), China (Shanghai), Mexico • More to come in Q4: US, China, Italy • Continuous e- commerce expansion: Arc’teryx & Suunto Japan, Salomon & Suunto Canada, Mavic US • Distribution capacity expansion continued • Significant investment into future product pipeline and learning: Wilson X, Suunto future variants, Precor expansion… 3 20 October 2016 Amer Sports Interim Report Presentation

New Arc’teryx stores in the US and Canada Toronto Yorkdale Chicago Veilance Pop-up store, New York 4 20 October 2016 Amer Sports Interim Report Presentation

Free Cash Flow in Q3: EUR 25 million better than Q3/15 EURm • Free Cash Flow always negative in Q3 due to seasonality. Strict Working Capital management was a main driver of better cash flow than year ago. 5 20 October 2016 Amer Sports Interim Report Presentation

Balance sheet in a nutshell EUR million Sept. 30, 2016 Sept. 30, 2015 Dec. 31, 2015 Net debt 666.9 616.6 460.3 Shareholders’ equity 913.7 886.4 949.6 Capital employed 1,580.6 1,503.0 1,409.9 Working capital 568.8 637.1 462.5 Capital turnover, LTM 1.78X 1.81X 1.90X ROCE, LTM % 15.2 15.2 16.1 Net debt/equity 0.73 0.70 0.48 Equity ratio % 35.3 36.6 37.2 LTM = Last Twelve Months 6 20 October 2016 Amer Sports Interim Report Presentation

Outdoor Q3/2016 (Q3/2015) EBIT excluding items affecting comparability Net sales MEUR MEUR 600 120 105.5 476.6 505.7 92.9 86.8 87.4 100 83.1 500 433.7 420.6 411.0 80 400 60 300 40 20 200 0 100 -20 0 -40 Q3/14 Q3/15 Q3/16 Q3/12 Q3/13 Q3/14 Q3/15 Q3/16 Q3/12 Q3/13 Net sales EUR 505.7 million, +6%* • Apparel +8%, Footwear +4%, Sports Instruments +23% • Cycling +9%. Acquisition of ENVE Composites LLC. • Winter Sports Equipment 3%. Deliveries peaked already in Q3. EBIT excl. IAC EUR 105.5 million (92.9) *In local currencies 7 7 20 October 2016 20 October 2016 Amer Sports Interim Report Presentation

Ball Sports Q3/2016 (Q3/2015) Net sales EBIT excluding items affecting MEUR MEUR comparability 200 180 25 147.8 160 147.0 121.9 116.7 112.9 20 140 120 15 8.8 100 10 80 5.3 3.9 5 60 -2,6 -2.1 40 0 20 -5 0 Q3/15 Q3/16 Q3/12 Q3/13 Q3/14 Q3/16 Q3/12 Q3/15 Q3/13 Q3/14 Net sales EUR 147.0 million, at previous year’s level* • Strong Team Sports sales growth driven especially by Baseball. Challenging market conditions in Individual Ball Sports. • Investment into Wilson X, B2C, new Go to Market model. EBIT excl. IAC EUR 5.3 million (8.8) *In local currencies 8 8 20 October 2016 20 October 2016 Amer Sports Interim Report Presentation

Fitness Q3/2016 (Q3/2015) EBIT excluding items affecting Net sales comparability 20 MEUR 140 120 15 89.3 100 9.1 84.1 80.7 10 7.3 71.6 80 69.0 6.2 4.2 5.4 5 60 40 0 20 -5 0 Q3/12 Q3/13 Q3/14 Q3/15 Q3/16 Q3/12 Q3/15 Q3/13 Q3/14 Q3/16 Net sales EUR 84.1 million, -4%* • New product pipeline all time high. Production of the new ranges started, topline impact expected in Q4 and increasingly in H1 2017. EBIT excl. IAC EUR 5.4 million (9.1) *In local currencies 9 9 20 October 2016 20 October 2016 Amer Sports Interim Report Presentation

OUTLOOK

Outlook for 2016 • In 2016, Amer Sports net sales in local currencies are expected to increase and EBIT margin excluding items affecting comparability to improve from 2015, despite challenging market conditions. • The company will focus on growing the core business and accelerating in five prioritized areas: Apparel and Footwear, US, China, Business to Consumer, as well as digitally connected devices and services. 11 20 October 2016 Amer Sports Interim Report Presentation

Prioritized, sequenced program continues

Transformation and acceleration toward 2020 Net sales ≥3.5 BEUR, improving EBIT-% Net sales ~2.5 BEUR, EBIT-% toward 10% Net sales 2+ BEUR, EBIT-% 7% Net sales Acceleration and 1.5 BEUR, scaling up, EBIT-% 4% Sustainable Growth Model transformation of and company profile Turnaround acquisition readiness continues ~2010 – 2013 ~2014 – 2015 ~2016 – 2020 13 20 October 2016 Amer Sports Interim Report Presentation

APPENDIX

Net sales and EBIT breakdown NET SALES Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2016 2016 2016 2015 2015 2015 2015 2015 2014 2014 2014 2014 2014 Outdoor 505.7 231.0 374.4 1,530.1 501.9 476.6 209.7 341.9 1,371.2 456.7 452.2 174.8 287.5 Ball Sports 147.0 165.5 186.7 647.0 165.7 147.8 169.4 164.1 536.7 136.9 112.9 136.2 150.7 Fitness 84.1 80.9 74.4 357.3 116.1 89.3 82.0 69.9 320.8 111.7 80.7 65.1 63.3 Total 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5 EBIT Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2016* 2016 2016* 2015* 2015 2015 2015* 2015* 2014* 2014* 2014* 2014* 2014 Outdoor 105.5 -16.0 37.7 161.2 65.6 92.9 -18.7 21.4 125.6 55.0 83.1 -22.0 9.5 Ball Sports 5.3 7.7 19.0 46.6 8.2 8.8 11.3 18.3 35.9 12.5 3.9 6.3 13.2 5.4 4.5 Fitness 0.3 31.2 15.7 9.1 5.1 1.3 29.7 14.9 7.3 4.1 3.4 -9.7 -8.3 Headquarters -11.0 -26.9 -5.5 -7.3 -6.7 -7.4 -22.9 -4.7 -6.7 -6.0 -5.5 Total 106.5 -12.1 46.0 212.1 84.0 103.5 -9.0 33.6 168.3 77.7 87.6 -17.6 20.6 * Excl. IAC 16 20 October 2016 Amer Sports Interim Report Presentation

Business area net sales Q3/2016 Q3/2015 Ch % Ch %* 2015 Footwear 144.6 141.2 2 4 461.2 Apparel 146.3 135.4 8 8 387.2 Winter Sports Equipment 140.5 136.2 3 3 400.2 Cycling 34.3 31.2 10 9 138.5 Sports Instruments 40.0 32.6 23 23 143.0 Individual Ball Sports 63.2 70.4 -10 -10 315.4 Team Sports 83.8 77.4 8 9 331.6 Fitness 357.3 84.1 89.3 -6 -4 Total 2,534.4 736.8 713.7 3 4 *Change in local currencies 17 20 October 2016 Amer Sports Interim Report Presentation

Net sales by region Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ MEUR 2016 2016 2016 2015 2015 2015 2015 2015 2014 2014 2014 2014 2014 EMEA 334.7 174.8 278.9 1,114.7 356.8 319.3 168.0 270.6 1,064.0 336.9 321.9 156.1 249.1 Americas 304.6 229.8 267.1 1,070.1 313.2 302.0 224.7 230.2 874.3 270.1 249.0 166.0 189.2 Asia Pacific 97.5 72.8 89.5 349.6 113.7 92.4 68.4 75.1 290.4 98.3 74.9 54.0 63.2 Total 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5 18 20 October 2016 Amer Sports Interim Report Presentation

Sales development by region in Q3/2016 EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 291.7 9 149.4 3 64.6 4 505.7 6 Ball Sports 22.5 -6 106.7 2 17.8 -4 147.0 0 Fitness 20.5 -4 48.5 -6 15.1 0 84.1 -4 Total 334.7 7 304.6 1 97.5 3 736.8 4 * Change in local currencies Total Ball Sports Fitness Outdoor 13% 12% 13% 18% 15% 46% 58% 24% 41% 736.8 505.7 147.0 84.1 73% 58% 29% 68% APAC EMEA Americas Amer Sports Interim Report Presentation 19 20 October 2016

Balance sheet September 30, September 30, MEUR 2016 2015 Goodwill and other intangible non-current assets 669.6 599.5 Tangible non-current assets and other non-current assets 342.5 320.4 Inventories and work in progress 558.0 511.5 Receivables 772.0 775.4 Cash and cash equivalents 244.9 216.8 Shareholders’ equity 913.7 886.4 Interest bearing liabilities 911.8 833.4 - Long-term 834.9 631.4 - Current 76.9 202.0 Other liabilities 761.5 703.8 Total 2,587.0 2,423.6 20 20 October 2016 Amer Sports Interim Report Presentation

Refinancing needs well covered 400,0 • Cash EUR 244.9 million and unused committed facilities 350,0 EUR 150 million (Sep 30, 2016) 300,0 • Commercial paper program in Bonds 250,0 size of EUR 500 million; out Bank loans of which EUR 74.9 million 200,0 utilized Commercial 150,0 Papers • No scheduled repayments of Other long-term loans in 2016 or in 100,0 2017. 50,0 • Average interest rate of loan portfolio 2.0% (Sep 30, 2015 0,0 2.6%) 21 20 October 2016 Amer Sports Interim Report Presentation

Hedged flows, next 12 months Next 12mth flow of which Spot Hedge Hedge FX ’16 FX’17 Main FX pairs (MEUR) hedged (@19.10.16) USD purchases against EUR -371 97% 1.10 1.15 1.14 USD sales against EUR +71 100% 1.10 1.13 1.12 GBP sales against EUR +91 100% 0.89 0.74 0.78 CHF sales against EUR +55 100% 1.09 1.05 1.08 USD purchases against CAD -107 100% 1.31 1.31 1.32 22 Amer Sports Interim Report Presentation