Solid quarter with broad-based progress, strategic focus areas are - PowerPoint PPT Presentation

Amer Sports Q3/2018 Solid quarter with broad-based progress, strategic focus areas are delivering October 25, 2018 – Heikki Takala, President and CEO

Profitable growth continued in Q3 • Net sales EUR 757.2 million (697.9): +9%, organic growth 3%* – Cycling business reported as discontinued operations** • Gross margin 46.2% (46.5) • EBIT excl. IAC EUR 116.9 million (103.8) • Free cash flow -132.2 (-55.8) reflecting inventory build-up for Q4 * In local currencies ** 2018 and 2017 figures adjusted accordingly The comparative figures for 2017 have been restated in accordance with IFRS 15 Revenue from contracts with customers and IFRS 9 Financial instruments 2 25 October 2018 Amer Sports Interim Report Presentation

Progress across the portfolio • Broad-based growth and improvement – Winter Sports Equipment +8%, strong momentum in all product categories – Sports Instruments +15%, strong momentum – Ball Sports +4%, good demand especially in baseball category +16% • Apparel +31% further boosted by Peak Performance, Arc’teryx +7% with another year of double digit growth • Fitness order book strong for Q4 thanks to several new customers 3 25 October 2018 Amer Sports Interim Report Presentation

Strategic priorities are delivering • Apparel accelerates with 31% growth • Footwear EMEA distribution renewal continues – longer term improvement already in sight. US growing strongly • Direct to Consumer organic growth +17% to EUR 55 million in sales – own retail +13% (same store growth +7%) – e-commerce +23%  “Modern sales channels” ~30% of sales • China +20% • US returning to a mid-single digit growth • Portfolio: actively finding a buyer for the Cycling asset 4 25 October 2018 Amer Sports Interim Report Presentation

Balance sheet September 30, September 30, Dec. 31, EUR million 2018 2017 2017 Net debt 946.8 460.7 608.1 Shareholders’ equity 921.5 885.4 860.1 Capital employed 1,868.3 1,346.0 1,468.3 Working capital 1,010.9 863.7 755.4 Capital turnover, LTM 1.76X 1.78X 1.87X ROCE*, % 14.7 13.2 14.8 Net debt/EBITDA* LTM 3.17 1.62 2.29 Net debt/equity 1.03 0.71 0.52 * Excluding IAC 5 25 October 2018 Amer Sports Interim Report Presentation

Outlook unchanged – guided by our long term targets and strategies • In 2018, Amer Sports’ net sales in local currencies as well as EBIT excl. IAC are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven. • The company will prioritize sustainable, profitable growth, focusing on its five strategic priorities (Apparel and Footwear, Direct to Consumer, China, US, and Connected Devices and Services) whilst continuing its consumer- led transformation. 6 25 October 2018 Amer Sports Interim Report Presentation

Outdoor Q3/2018, continuing operations (Q3/2017) Net sales MEUR 600 522.0 471.4 468.9 445.4 500 401.3 Net sales EUR 522.0 million, +12%* 400 • 300 Apparel +31%, driven by Peak Performance and Arc’teryx 200 100 • Footwear -4%, consolidation of 0 EMEA distribution continued, Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 US and Japan up high-single digit EBIT excluding items affecting comparability • MEUR Winter Sports +8% 113.1 120 103.5 99.8 91.6 100 • 79.2 Sports Instruments +15% 80 60 EBIT excl. IAC EUR 113.1 million 40 20 (99.8) 0 -20 -40 Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 * In local currencies 7 25 October 2018 Amer Sports Interim Report Presentation

Net sales MEUR Ball Sports Q3/2018 200 180 (Q3/2017) 147.2 160 147.8 147.0 141.2 140 112.9 120 100 Net sales EUR 147.2 million, +4%* 80 • 60 Team Sports grew by 9%, 40 Baseball category sales grew by 16% 20 0 Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 EBIT excl. IAC EUR 7.7 million (6.3) MEUR EBIT excluding items affecting comparability EBIT margin excl. IAC 5.2% (4.5) 20 18 16 14 12 8.8 10 7.7 6.3 8 5.3 3.9 6 4 2 0 Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 * In local currencies 8 25 October 2018 Amer Sports Interim Report Presentation

Net sales Fitness Q3/2018 MEUR 140 (Q3/2017) 120 100 89.3 88.0 87.8 84.1 80.7 Net sales EUR 88.0 million, 80 at previous year’s level * 60 40 • Growth in APAC offset by EMEA 20 EBIT excl. IAC EUR 1.2 million (4.5) 0 Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 • EBIT excluding items affecting comparability Decreased gross margin lowered 16 the profitability 14 12 Order book strong for Q4 9.1 10 7.3 8 5.4 6 4.5 4 1.2 2 0 Q3/17 Q3/14 Q3/15 Q3/16 Q3/18 * In local currencies 9 25 October 2018 Amer Sports Interim Report Presentation

Key takeaways from CMD in September • We continue to grow and create value • Our strategy is working and organic growth drivers remain largely unchanged – Sustainable Growth Model – Clear portfolio roles – Group scale and synergy – Acceleration priorities: Softgoods, D2C, China, US, digitalization • We continue our transformation towards areas of faster sustainable growth, higher profitability, and asset efficiency, with increasing weight of Softgoods, D2C, and China • As part of the transformation, we will broaden our toolbox to include strategic portfolio choices – a more focused company with increasingly attractive business model 10 25 October 2018 Amer Sports Interim Report Presentation

Appendix

Net sales and EBIT breakdown (continuing operations) NET SALES Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2018 2018 2018 2017 2017 2017 2017 2017 2016 2016 2016 2016 2016 Outdoor 468.9 210.1 356.9 1,451.6 452.4 471.4 193.0 334.7 522.0 216.2 349.1 1,540.0 504.1 Ball Sports 147.2 159.0 164.2 659.0 163.0 141.2 169.8 185.0 671.1 171.9 147.0 165.5 186.7 Fitness 87.8 84.4 84.5 349.2 109.8 84.1 80.9 74.4 88.0 79.9 78.4 375.6 118.9 Total 757.2 455.1 591.1 2,574.6 786.0 697.9 464.3 626.4 2,471.9 734.1 702.5 439.4 595.8 EBIT Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2018* 2018* 2018 2017* 2017* 2017* 2017* 2017* 2016* 2016* 2016* 2016 2016* Outdoor 99.8 -28.5 25.7 187.1 70.7 103.5 -19.3 32.3 113.1 -27.9 33.6 178.4 81.4 Ball Sports 6.3 9.3 15.8 44.8 12.8 5.3 7.7 19.0 7.7 11.0 14.9 45.2 13.8 Fitness 1.2 0.0 0.1 20.1 12.4 4.5 2.5 0.7 17.0 6.8 5.4 4.5 0.3 Headquarters -5.1 -5.8 -8.3 -29.3 -9.5 -6.8 -5.2 -7.8 -37.0 -8.0 -9.7 -8.3 -11.0 Total 116.9 -22.7 40.3 214.4 98.1 103.8 -21.9 34.4 211.9 82.3 104.5 -15.4 40.6 * Excl. IAC 13 25 October 2018 Amer Sports Interim Report Presentation

Net sales by Business Unit in Q3 (continuing operations) Ch Ch MEUR % %* 2017 Q3/2018 Q3/2017 Footwear 138.5 145.1 -5 -4 500.8 Apparel 196.9 153.1 29 31 482.3 Winter Sports Equipment 143.4 133.1 8 8 415.2 Sports Instruments 43.2 37.6 15 15 141.7 Individual Ball Sports 62.9 64.5 -2 -2 296.9 Team Sports 84.3 76.7 10 9 362.1 Fitness 88.0 87.8 0 0 375.6 * In local currencies 14 25 October 2018 Amer Sports Interim Report Presentation

Sales development by region (continuing operations) EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 307.6 18 146.0 1 68.4 15 522.0 12 Ball Sports 23.0 -6 106.5 6 17.7 10 147.2 4 Fitness 20.7 -15 50.3 3 17.0 13 88.0 0 Total 351.3 14 302.8 3 103.1 14 757.2 9 Outdoor Total Ball Sports Fitness 16% 16% 35% 13% 59% 12% 16% 19% 24% 14% 46% 16% 35% 35% 88.0 522.0 147.2 757.2 72% 57% 49% 49% 28% 49% 40% EMEA Americas APAC * Change in local currencies 15 25 October 2018 Amer Sports Interim Report Presentation

Foreign currency translation difference (continuing operations) Q3/2018 Q3/2017 Change Reported Reported Local FX Reported, % Local FX, % Footwear 138.5 145.1 143.9 -5 % -4 % Apparel 196.9 153.1 150.3 29 % 31 % Winter Sports Equipment 143.4 133.1 132.5 8 % 8 % Sports Instruments 43.2 37.6 37.5 15 % 15 % Outdoor 522.0 468.9 464.2 11 % 12 % Individual Ball Sports 62.9 64.5 64.3 -2 % -2 % Team Sports 84.3 76.7 77.3 10 % 9 % Ball Sports 147.2 141.2 141.6 4 % 4 % Fitness 88.0 87.8 88.3 0 % 0 % Total 757.2 697.9 694.1 8 % 9 % 16 25 October 2018 Amer Sports Interim Report Presentation

Balance sheet MEUR Sep 30, 2018 Sep 30, 2017 Dec 31, 2017 Goodwill and other intangible non-current assets 878.7 646.6 649.2 Tangible non-current assets and other non-current assets 339.1 332.2 340.5 Inventories and work in progress 611.5 562.6 481.3 Receivables 809.9 723.3 772.2 Cash and cash equivalents 198.1 229.3 358.4 120.7 - - Assets held for sale Shareholders’ equity 921.5 860.1 885.4 Interest bearing liabilities 1,146.2 837.4 819.1 - Long-term 742.7 792.0 632.8 - Current 403.5 45.4 186.3 Liabilities held for sale 18.5 - - Other liabilities 871.8 796.5 897.6 Total 2,958.0 2,494.0 2,602.1 17 25 October 2018 Amer Sports Interim Report Presentation

IFRS 15 Adjustments (continuing operations) 18 25 October 2018 Amer Sports Interim Report Presentation

Contact information • Heikki Takala, President and CEO Tel. +358 20 712 2510 • Jussi Siitonen, CFO Tel. +358 20 7122511 • Samppa Seppälä, Director, Corporate Communications and IR Tel. +358 50 5680533  www.amersports.com 19 25 October 2018 Amer Sports Interim Report Presentation