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TRANSCRIPT
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Ball Sports
Focus on profitable
growth
Chris Considine,President
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Disclaimer
Statements 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 expressed in 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 or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.
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Contents
• Brand / business position• Priorities and building blocks• Case: Golf• Summary
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Racquet Sports47 %
Team Sports39%
Golf14%
Sales by Business Area
Americas63 %
EMEA23 %
APAC14 %
Sales by Region
Ball Sports
• Main sports: Baseball, Softball, American Football, Basketball, Tennis, Badminton, Squash and Golf
• Wilson is behind more winning moments in sports than any other brand in the world
• Strong presence in 10 equipment categories
• Market Challenges– Participation levels stable or in
some cases declining– Market share growth game
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
0
100
200
300
400
500
600
700
2006 2007 2008 2009 2010H1
H2 H1 EBIT-%MEUR EBIT-%
2009
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Group development priorities
• Clear portfolio roles and synergies, integrated company
• Grow faster in softgoods• Win with consumers• Win in go-to-market• Operational excellence
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Group development priorities in Ball Sports: Focus on profitable growth
• Clear portfolio roles and synergies, integrated company• Fully integrated• Category based operations
• Grow faster in softgoods• Expanding into white spaces (today: Wilson
tennis only)• Win with consumers
• Regional consumer/marketing set up• New products and innovations
• Win in go-to-market• Strengthen commercial fundamentals
• Operational excellence
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Growth from softgoods, DeMarini and adjacencies
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0102030405060708090
100
%
Total TennisMarket
TennisHardgoods
TennisSoftgoods
Wilson Opportunity
18% 31%
6%
$1.2
bill
ion
$580
mill
ion
$606
mill
ion
Growth opportunity in softgoods, e.g. tennis
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Opportunity in DeMarini: Creating business and brand value
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In-Store/Sales Marketing
In-Store Banners
T-Shirts for SalesAssociates
ConsumerPosters
1
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Team Sports Protectives
Adjacencies – Football, Baseball
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Win with consumers
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Strong pipeline of new products and innovations• Uncovering unmet needs → Drive share growth• Establish technology position at Premium/Commercialize• Technology platforms
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D-FyDeMarini Basketball Half/Half Shaft BLX
• Voodoo
- Fastest growing Baseball Bat
• Game Basketballs- Patented technologies
• Half/Half Golfshaft• Basalt = Better Feel
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Win in go-to-market
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AmericasEMEA
Asia Pacific
22%
14%
5%53%
6%
Current position globally
Net sales geographically in 2009
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Focus in geographical expansion• Asia/China
– Great momentum in Korea– China footprint growing– Main focus on Racquet Sports
• EMEA– Organic growth in Tennis, Golf– Opportunities in Team Sports
• Latin America– Continued growth
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Opportunities in channels
• Racquet/Team– Key focus on Sporting Goods Retailers
• Targeted programs by customer– Maintain/enhance leadership position– Expand sales in specialty through softgoods/adjacencies
• Golf– Focus on Top 30 Global Customers
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Operational excellence22
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How to secure the margins and profitability
• Overall Management Approach– Detailed Gross Profit initiative– 80/20 – Customers & SKU’s
• Sourcing– Enable our vendor partners
through better design– Leverage Amer Sports sourcing
platform– R&D efforts aligned with
profitability targets
• Inventory Management Programs– DSI Programs in place– Disciplined “Open to Buy”
Program– SKU Reduction Program
• Improve Mix– Targets, goals, compensation
programs aligned
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Case Golf
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Golf: Under review
• Historical success, struggling in recent years
• Prove the attractiveness: deliver target profitability
• Manage the product/business portfolio: exit unprofitable areas, more mix to Premium Wilson Staff
• Expanding the footprint in EMEA/US markets, focus on large customers
• R&D Platforms are working: award winning products
• Positioning is clear: “More majors won”, “Own the Fairway”
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Summary
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Group development priorities in Ball Sports: Focus on profitable growth
• Clear portfolio roles and synergies, integrated company• Fully integrated• Category based operations
• Grow faster in softgoods• Expanding into white spaces (today: Wilson
tennis only)• Win with consumers
• Regional consumer/marketing set up• New products and innovations
• Win in go-to-market• Strengthen commercial fundamentals
• Operational excellence