amer sports q2/2017 h1 largely in line with plan, h2 ...€¦ · 12 27 july 2017 amer sports...

Amer Sports Q2/2017

H1 largely in line with plan, H2 improvement in sight, full year confirmedJuly 27, 2017 – Heikki Takala, President and CEO

Context

• Consumer demand for our brands continues to be high.

• Q2 growth from own Direct to Consumer and 3rd party online sales.

• Traditional wholesale down vs. a year ago especially in the US,

partially due to the declined store footprint following the 2016

retailer bankruptcies.

• Trading conditions gradually improving, indicated by strengthening

order positions.

• Our own initiative pipeline is robust, supported by company

transformation.

• We prioritize profitable growth, and continue to drive productivity,

enabled by ongoing restructuring.

27 July 20172 Amer Sports Interim Report Presentation

Q2: Strong growth in strategic priority areas

• Net sales EUR 487.3 million (477.4), up by 2%, in local currencies +1%

– Apparel +22%, own retail +25% (same store growth +7%),

e-commerce +45%, China +20%

• Gross margin 44.5% (44.7)

• Opex up by EUR 12 million driven by investments into transformation

• EBIT excl. IAC EUR -24.8 million (-12.1)

• Free cash flow positive at EUR 7.0 million (-54.3)

27 July 2017 Amer Sports Interim Report Presentation3


-40

-20

0

20

40

60

80

100

120

EBIT excluding items affecting comparability

0

100

200

300

400

500

600

Net sales

Outdoor Q2/2017 (Q2/2016)

27 July 20174

MEURMEUR

-27.1

Q2/13 Q2/17Q2/14

168.7

Q2/13

-22.0

Q2/15

174.8

Q2/14

Net sales EUR 238.3 million, +3%*

• Apparel +22% driven by Arc’teryx

• Footwear +2%, impacted by global distribution consolidation and volatility in

Latin America

• Mavic sales impacted by high OEM and retail inventories. ENVE +26%

• Sports Instruments +7% due to Spartan multisport watches

EBIT excl. IAC EUR -31.1 million (-16.0)

Q2/16

209.7

Q2/15

-18.7

Q2/17

231.0

Q2/16

-16.0

238.3

-31.1

*In local currencies

-5

0

5

10

15

20

25


Ball Sports Q2/2017 (Q2/2016)

Net sales EUR 167.5 million, at previous year’s level*

• US wholesale market soft; baseball de-stocking ahead of changes in bat

regulations in early 2018

EBIT excl. IAC EUR 9.0 million (7.7)

27 July 2017 Amer Sports Interim Report Presentation5 27 July 20175

MEUR

Q2/17Q2/13 Q2/14

9.0

Q2/15

6.37.8

11.3

Q2/160

20

40

60

80

100

120

140

160

180

200

Net salesMEUR

Q2/17

136.2

Q2/13 Q2/14

169.4

144.2

Q2/15 Q2/16

165.5

7.7

167.5


Fitness Q2/2017 (Q2/2016)

Net sales EUR 81.5 million, +1%*

• Growth unevenly split between the quarters, order book has continued to

strengthen

EBIT excl. IAC EUR 2.5 million (4.5)

27 July 2017 Amer Sports Interim Report Presentation6 27 July 20176

0

20

40

60

80

100

120

140

Net sales

MEUR

Q2/17Q2/17

64.3

Q2/13 Q2/13Q2/14 Q2/15

65.1

Q2/14

82.0

Q2/15Q2/16

80.9

Q2/16-5

0

5

10

15

20


4.3

2.54.1 5.1 4.5

81.5


H1 in a nutshell

• Net sales EUR 1,148.9 million (1,112.9), up by 3%, in local currencies

+2%

– Apparel +17%, own retail +22% (same store growth +7%), e-commerce +45%,

China +13%

• Gross margin 44.9% (46.3) due to less favorable hedges

• EBIT excl. IAC EUR 13.4 million (33.9)

• Free cash flow EUR 60.9 million (-21.5)


In H1, we continued the company transformation

• Opex EUR +14 million: topline driven EUR +6 million, investment

opex EUR +16 million (of which amortization EUR 8 million),

maintenance EUR -8 million. Main investment areas:

– New retail stores, e-commerce expansion

– Building the consumer database

– Strengthening capabilities in e-commerce, own retail, and digital

consumer engagement

• EMEA and North-American Go to Market omni-channel

re-organization completed


Transformation investment increasingly enabled by maintenance cost reduction


2116

3429

21

6

36

22

-2-8

-5-11

14

Investment

driven

H1-16

66

FY-16

Maintenance

driven

H1-17

Topline

driven

LTM

June’17

40

40

Balance sheet


EUR million

June 30,

2017

June 30,

2016

Dec. 31,

2016

Net debt 584.4 599.9 535.9

Shareholders’ equity 840.5 858.2 1,003.1

Capital employed 1,424.9 1,458.1 1,539.1

Working capital 416.0 456.6 487.6

Capital turnover 1.77X 1.83X 1.77x

ROCE, LTM % 13.4 15.6 14.9

Net debt/EBITDA LTM 2.2 2.2 1.9

Net debt/equity 0.69 0.70 0.53

Equity ratio, % 35.4 35.8 36.9

Outlook

Outlook for 2017


• In 2017, Amer Sports’ net sales in local currencies are expected

to increase from 2016, despite short-term market softness. EBIT

excl. IAC is expected to be approximately at the level of 2016.

• The growth in 2017 is expected to be biased to the second half

of the year. EBIT excl. IAC includes further accelerated

investment into the company’s transformation toward omni-

channel and digital to win in the fast changing market place.

• The company will continue to focus on growing the core

business and the five prioritized areas: Apparel and Footwear,

US, China, Business to Consumer, as well as digitally connected

devices and services.

APPENDIX

Net sales and EBIT breakdown

27 July 201715

* Excl. IAC

NET SALES

(MEUR)

Q2/

2017

Q1/

2017 2016

Q4/

2016

Q3/

2016

Q2/

2016

Q1/

2016 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015

Outdoor 238.3 396.2 1,601.8 490.7 505.7 231.0 374.4 1,530.1 501.9 476.6 209.7 341.9

Ball Sports 167.5 184.9 671.1 171.9 147.0 165.5 186.7 647.0 165.7 147.8 169.4 164.1

Fitness 81.5 80.5 349.2 109.8 84.1 80.9 74.4 357.3 116.1 89.3 82.0 69.9

Total 487.3 661.6 2,622.1 772.4 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9

EBIT

(MEUR)

Q2/

2017*

Q1/

2017* 2016*

Q4/

2016*

Q3/

2016*

Q2/

2016

Q1/

2016* 2015*

Q4/

2015

Q3/

2015

Q2/

2015*

Q1/

2015*

Outdoor -31.1 28.8 196.9 69.7 105.5 -16.0 37.7 161.2 65.6 92.9 -18.7 21.4

Ball Sports 9.0 16.5 44.8 12.8 5.3 7.7 19.0 46.6 8.2 8.8 11.3 18.3

Fitness 2.5 0.7 17.0 6.8 5.4 4.5 0.3 31.2 15.7 9.1 5.1 1.3

Headquarters -5.2 -7.8 -37.0 -8.0 -9.7 -8.3 -11.0 -26.9 -5.5 -7.3 -6.7 -7.4

Total -24.8 38.2 221.7 81.3 106.5 -12.1 46.0 212.1 84.0 103.5 -9.0 33.6

Amer Sports Interim Report Presentation

Net sales by Business Unit


MEUR Q2/2017 Q2/2016

Ch

%

Ch

%* 2016

Footwear 100.1 97.0 3 2 490.5

Apparel 59.2 48.8 21 22 431.1

Winter Sports Equipment 14.2 16.1 -12 -12 388.5

Cycling 31.4 38.0 -17 -18 150.2

Sports Instruments 33.4 31.1 7 7 141.5

Individual Ball Sports 81.1 79.5 2 1 299.8

Team Sports 86.4 86.0 0 -2 371.3

Fitness 81.5 80.9 1 1 349.2


Net sales by region

27 July 201717

MEUR

Q2/

2017

Q1/

2017 2016

Q4/

2016

Q3/

2016

Q2/

2016

Q1/

2016 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015

EMEA 170.5 289.5 1,133.7 345.3 334.7 174.8 278.9 1,114.7 356.8 319.3 168.0 270.6

Americas 238.0 276.0 1,116.0 314.5 304.6 229.8 267.1 1,070.1 313.2 302.0 224.7 230.2

Asia

Pacific 78.8 96.1 372.4 112.6 97.5 72.8 89.5 349.6 113.7 92.4 68.4 75.1

Total 487.3 661.6 2,622.1 772.4 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9

Amer Sports Interim Report Presentation

Outdoor

Sales development by region in Q2/2017


Fitness Total

EMEA Americas APAC

Ball Sports

EMEA Americas APAC Total

MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %*

Outdoor 121.6 -3 72.2 9 44.5 12 238.3 3

Ball Sports 31.4 1 116.6 -2 19.5 8 167.5 0

Fitness 17.5 4 49.2 0 14.8 -4 81.5 1

Total 170.5 -2 238.0 2 78.8 8 487.3 1

* Change in local currencies

238.3 167.5 81.5 487.3

19% 11%19%

70%

19%21%

60%

16%35%

49%

51%

30%

Refinancing needs well covered


• Cash EUR 246.4 million and

unused committed facilities EUR

150 million (Jun 30, 2017)

• Commercial paper program in size

of EUR 500 million completely

unutilized

• No scheduled repayments of

long-term loans in 2017

• Average interest rate of loan

portfolio 2.5% (Jun 30, 2016 2.1%)

0,0

50,0

100,0

150,0

200,0

250,0

Bonds

Bank loans

CommercialPapers

Other

Foreign currency translation difference


EUR million Q2 2017 Q2 2016

Business Area Reported ReportedLocal

Currency

Translation

Difference

Footwear 100.1 97.0 97.7 0.7

Apparel 59.2 48.8 48.4 -0.4

Winter Sports Equipment 14.2 16.1 16.2 0.1

Cycling 31.4 38.0 38.2 0.2

Sports Instruments 33.4 31.1 31.3 0.2

Outdoor 238.3 231.0 231.8 0.8

Individual Ball Sports 81.1 79.5 80.2 0.7

Team Sports 86.4 86.0 87.9 1.9

Ball Sports 167.5 165.5 168.1 2.6

Fitness 81.5 80.9 81.0 0.1

Total 487.3 477.4 480.9 3.5

Next 12 months net cash flows and related hedges, main FX pairs

27 July 2017 Amer Sports Financial Statements21

Main FX pairs Hedge

%

Next 12mth

flow (EURm)

ECB Fixing

rate(@30.6.17)

Hedge

FX ’17

Hedge

FX’18

USD purchases against EUR 100% -415 1.14 1.14 1.11

USD sales against EUR 100% +73 1.14 1.12 1.09

GBP sales against EUR 100% +97 0.88 0.86 0.87

CHF sales against EUR 100% +53 1.09 1.08 1.07

USD (net)purchases against CAD 100% -96 1.30 1.31 1.31

Contact information

• Heikki Takala, President and CEO

Tel. +358 20 712 2510

• Jussi Siitonen, CFO

Tel. +358 20 7122511

• Päivi Antola, Director, Corporate Communications and IR

Tel. +358 20 712 2537

www.amersports.com


DisclaimerStatements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates,are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995.Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressedin such forward-looking statements.Amer Sports assumes no responsibility to update any of the forward-looking statements contained herein.No representation or warranty, express or implied, is made or given by or on behalf of Amer Sports or its employees orany other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.

www.amersports.com


amer sports q2/2017 h1 largely in line with plan, h2 ...€¦ · 12 27 july 2017 amer sports...

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