Continued growth and improving profitability January 28, 2014, - PowerPoint PPT Presentation

AMER SPORTS 2013 Continued growth and improving profitability January 28, 2014, Heikki Takala, President and CEO

Q4: strong double-digit growth, improved profitability • Net sales EUR 657.4 million (618.5), +12% in local currencies - Footwear +25%, Apparel +21%, Sports Instruments +18%, Fitness +16%, Winter Sports Equipment +8%, Ball Sports +5%, Cycling 0% - EMEA +13%, Americas +8%, APAC +19% - B2C +27%, Emerging markets +17% • Gross margin 42.0% (41.9%) • EBIT EUR 64.7 million (47.0 excl. NRI ), driven by increased sales volumes - EBIT margin 9.8% (7.6% excl. NRI) • Net cash flow EUR 143.9 million (96.7), driven by decreased working capital In local currencies 2 Amer Sports Financial Statements

2013: broad-based and profitable growth • Record net sales EUR 2,136.5 million (2,064.0), +8% in local currencies - Apparel +21%, Sports Instruments +17%, Fitness +13%, Footwear +11% - Winter Sports Equipment 3%, Ball Sports +1%, Cycling +1% - EMEA +8%, Americas +5%, APAC +15% - B2C +32%, Emerging markets growth +21% • Gross margin 43.6% (43.6%): last year level safeguarded despite increased air freight and currency headwinds • EBIT EUR 154.9 million (138.7 excl. NRI), EBIT margin 7.3% (6.7% excl. NRI) - Driven by increased sales volumes - OPEX 37.0% (37.7%). Strategic OPEX investments continued • Dividend proposal EUR 0.40 per share (0.35) In local currencies 3 Amer Sports Financial Statements

Record sales improved profitability EUR million 2013 2012 Ch % Ch %* Net sales 2,136.5 2,064.0 4 8 Gross profit 932.2 900.6 4 7 Gross profit, % of net sales 43.6 43.6 EBIT excluding non-recurring items 154.9 138.7 12 EBIT % excluding non-recurring items 7.3 6.7 Non-recurring items 0.0 -24.8 EBIT total 154.9 113.9 36 Net cash flow after investing activities 42.5 71.8 *) In local currencies 4 Amer Sports Financial Statements

Continuous investments into future growth EUR million 2013 2012 2011 Topline driven OPEX increase 22.5 10.3 19.1 Investment OPEX increase 20.9 31.9 26.1 Maintenance OPEX increase -2.3 10.9 3.7 Total increase in OPEX 41.1 53.1 48.9 In local currencies • Operating expenses increased by EUR 41 million in local currencies • Continuous investments into future growth with focus on softgoods, sales coverage, emerging markets and business to consumers • Restructuring continued, impacts maintenance OPEX 5 Amer Sports Financial Statements

Balance sheet remains healthy EUR million Dec. 31, 2013 Dec. 31, 2012 Net debt 431.7 434.3 Shareholders’ equity 761.3 731.8 Capital employed 1,193.0 1,166.1 Working capital 457.2 400.1 Net debt / EBITDA, excluding non-recurring items 2.2 2.4 Gearing, % 57 59 Equity ratio, % 37.5 39.1 6 Amer Sports Financial Statements

Strong cash flow in Q4 MEUR H2: EUR -41m H2: EUR +19m H2: EUR +25m 150 100 50 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 -50 -100 -150 7 Amer Sports Financial Statements

No significant mid-term refinancing needs 225m • Cash EUR 270.0 million and unused committed facilities 200m EUR 240 million (December 175m 31, 2013) 150m • Commercial paper program 125m EUR 500 million, of which EUR 119.6 million issued 100m • Scheduled long-term 75m payments in 2014 EUR 62.5 50m million and in 2015 EUR 157.4 million 25m • 0m Average interest rate of the 2014 2015 2016 2017 2018=> loan portfolio is 3.5% (3.6) Pension Loan Bonds Bank loans Commercial Papers Other 8 Amer Sports Financial Statements

Summary: progress vs. financial targets TARGET 2009 2010 2011 2012 2013 Organic FX-neutral Growth -6% 8% 9% 5% 8% 5% annual growth Profitability EBIT of at least 10% 3.2% 6.2% 7.2% 6.7% 7.3% of net sales Cash Flow Annual free cash flow 4.5X 0.7X -0.2X 0.9X 0.5X equal to net profit Balance Net Debt/EBITDA ratio 3.6X 2.2X 2.3X 2.4X 2.2X Sheet at or below 3X 9 Amer Sports Financial Statements

OUTLOOK

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 is expected to improve from 2013. • The company will continue to focus on softgoods growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence. 11 Amer Sports Financial Statements

WE CONTINUE MOVING

We continue to make solid progress in our strategic priorities • Majority of businesses improving according to their portfolio role, driving scale and synergies - Strong growth in softgoods (EUR 715 million), emerging markets, B2C, etc. - Winter Sports Equipment: increasingly sustainable model - Sports Instruments and Fitness turnaround continued - Now major focus on improving Ball Sports and realizing further portfolio synergies • Our consumer marketing and product innovation pipeline increasingly focused on “surrounding the consumer” with head -to-toe solutions • Continuous improvement in Go to Market: distribution quantity and quality, good progress on B2C • All operations improving their KPIs 13 Amer Sports Financial Statements

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 • Add more • Build capabilities: ~2010 • Softgoods • Softgoods • Category based development • Emerging markets • Own retail • Go to market • Clarify priorities, set • Learn for future direction • Drive organic growth: • Next growth categories softgoods, Russia, China, BtoC, • Continue to drive profit (accessories, action etc. recovery, deliver the year sports, Digital) • Operational excellence, WSE • Continue the work on efficiency & profitability operational efficiency & margins improvement 14 Amer Sports Financial Statements

APPENDIX

Net sales and EBIT breakdown (MEUR) Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ NET SALES 2013 2013 2013 2013 2013 2012 2012 2012 2012 2012 Winter and Outdoor 1,289.5 433.7 420.6 168.7 266.5 1,221.2 402.8 411.0 150.9 256.5 Ball Sports 551.0 126.1 116.7 144.2 164.0 569.7 127.7 121.9 146.5 173.6 Fitness 296.0 97.6 71.6 64.3 62.5 273.1 88.0 69.0 56.4 59.7 Total 2,136.5 657.4 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ EBIT 2013 2013 2013 2013 2013 2012* 2012* 2012 2012 2012 Winter and Outdoor 127.0 52.5 87.4 -27.1 14.2 113.8 41.7 86.8 -25.4 10.7 Ball Sports 27.0 3.9 -2.1 7.8 17.4 28.0 1.0 -2.6 9.7 19.9 Fitness 24.4 14.3 6.2 4.3 -0.4 17.0 7.9 4.2 1.0 3.9 Headquarters -23.5 -6.0 -9.0 -3.7 -4.8 -20,1 -3.6 -7.1 -4.5 -4.9 Total 154.9 64.7 82.5 -18.7 26.4 138.7 47.0 81.3 -19.2 29.6 * Excluding non-recurring items 17 Amer Sports Financial Statements

Business area net sales in Q4 and 2013 Q4/ Q4/ Ch Ch Ch Ch MEUR 2013 2012 % %* % %* 2013 2012 Winter Sports Equipment 208.6 203.2 3 8 -2 3 416.7 425.0 Footwear 73.4 60.7 21 25 9 11 341.2 314.4 Apparel 86.9 77.0 13 21 15 21 285.4 248.6 Cycling 30.8 31.8 -3 0 -1 1 128.2 129.0 Sports Instruments 34.0 30.1 13 18 13 17 118.0 104.2 Individual Ball Sports 59.7 61.8 -3 3 -4 0 306.0 318.8 Team Sports 66.4 65.9 1 7 -2 1 245.0 250.9 Fitness 97.6 88.0 11 16 8 13 296.0 273.1 Total 657.4 618.5 6 12 4 8 2,136.5 2,064.0 * In local currencies 18 Amer Sports Financial Statements

Winter and Outdoor in 2013 (2012) EBIT excluding Net sales MEUR MEUR non-recurring items 100 500 416.5 402.8 433.7 375.0 80 450 61.2 52.5 400 60 45.0 41.7 350 40 300 250 20 200 0 150 -20 100 50 -40 0 Q4/10 Q4/11 Q4/12 Q4/13 Q4/10 Q4/11 Q4/12 Q4/13 Net sales +10+% • Apparel +21%. Both Salomon and Arc’teryx grew • Sports Instruments +17% driven by the Suunto Ambit product family and market expansion • Footwear +11%. All product segment and regions grew, strong growth in US • Winter Sports Equipment +3%. Strong growth in alpine boots and cross country • Cycling +1%, softgoods +14% EBIT was EUR 127.0 million (113.8, excl. NRI) • Increased sales volumes • Increased operating expenses due to sales and distribution costs 19 Amer Sports Financial Statements

Ball Sports 2013 (2012) EBIT exluding Net sales MEUR MEUR non-recurring items 180 25 160 127.7 20 126.1 140 107.3 109.0 120 15 100 10 80 3.9 5 60 -2.7 -0.7 1.0 40 0 20 -5 0 Q4/10 Q4/11 Q4/12 Q4/13 Q4/10 Q4/11 Q4/12 Q4/13 Net sales remained at previous year’s level • Americas and EMEA flat, 6% growth in APAC • Individual Ball Sports 0%. Tennis rackets flat, growth in tennis balls • Team Sports +1%. Baseball trade conditions normalized EBIT was EUR 27.0 million (28.0 excl. NRI) 20 Amer Sports Financial Statements