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AMER SPORTS Q1/2013A satisfactory start to the year, growth outlook in line with the long-term targetsApril 25, 2013, Heikki Takala, President and CEO
• Seasonally low quarter, own building blocks impact mostly Q2 onwards
• Net sales EUR 493.0 million (489.8), +2% in local currencies- Apparel +25%, Fitness +6%, Sports Instruments +4%, Russia +34%,
Q1: Strong progress in strategic growth areas
Apparel 25%, Fitness 6%, Sports Instruments 4%, Russia 34%, China 26%, B2C 30%
- Winter Sports Equipment, Footwear, Cycling and Individual Ball Sportsat last year’s level, Team Sports -9%
- Challenging trading conditions in Europe. Continuous move into re-order bias especially in Footwear
- EMEA +6%, Americas -4%, APAC +6%
• Gross margin 44.2% (44.2%)- Improved in Apparel and Footwear, unchanged in the other business areas,
Amer Sports Results Presentation
Improved in Apparel and Footwear, unchanged in the other business areas, declined in Fitness due to sales mix and sequencing of vendor rebates
• EBIT EUR 26.4 million (29.6)- Sales volumes up EUR 4 million- Operating expenses up EUR 10 million- Other income and expenses and currencies EUR +3 million
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Solid Q1 Free Cash Flow
100
EUR 145m EUR 146m EUR 165mEURm
• Q1 Free Cash Flow affected by repatriation of fall/winter season
-20
0
20
40
60
80
Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13
repatriation of fall/winter season receivables already in Q4/2012 (approx. EUR 30 million).
• Programs underway for stabilizing Working Capital volatility• Further Winter Sport
Equipment production lead time reduction
• #SKU control and elimination
Amer Sports Results Presentation
-100
-80
-60
-40• #SKU control and elimination of old SKUs
• Good receivables management
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Key figures
EUR million Q1/13 Q1/12 2012Net sales 493.0 489.8 2,064.0Gross profit 217.7 216.3 900.6Gross profit, % of net sales 44.2 44.2 43.6EBIT excluding non-recurring items 26.4 29.6 138.7EBIT % excluding non-recurring items 5.4 6.0 6.7Non-recurring items - - -24.8EBIT 26.4 29.6 113.9EBIT % 5.4 6.0 5.5
Amer Sports Results Presentation
Net cash flow after investing activities 67.9 97.4 71.8
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Balance sheet is healthy and continuously improving
EUR million March 31, 2013 March 31, 2012 Dec. 31, 2012
Net debt 398.4 409.5 434.3
Shareholders’ equity 717.4 701.5 731.8
Capital employed 1,115.8 1,111.0 1,166.1
Working capital 343.0 356.8 400.1
Gearing, % 56 58 59
Equity ratio, % 40.5 39.4 39.1
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• Cash EUR 136.1 million and unused committed facilities EUR 240 million
Refinancing needs well covered
150,0m
175,0m
facilities EUR 240 million (March 31, 2013)
• Commercial paper program EUR 500 million, of which EUR 71.1 million issued
• Scheduled long-term payments in 2013 EUR 25,0m
50,0m
75,0m
100,0m
125,0mDividendpaid April 4
Amer Sports Results Presentation
39.9 million and in 2014 EUR 62.7 million.
• Average interest rate of loan portfolio 4.1% (3.6)
,0m2013 2014 2015 2016
Pension Loan Bonds Bank loans Commercial Papers
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Winter and Outdoor Q1/2013 (Q1/2012)
250300350400450
Net sales
40
60
80
100
EBIT excludingnon-recurring itemsMEUR MEUR
181 7233.5 256.5 266.5
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Net sales +5%• Winter Sports Equipment at LY level. Normal Q1 re-orders.• Footwear at LY level. Stable pre-orders, business shifting towards re-orders.
Change in Korea Go to Market model.• Apparel +25%.
050
100150200250
-40
-20
0
20181.7 9.31.7164.4 -10.9
Q1/10 Q1/11 Q1/09 Q1/10Q1/09 Q1/11Q1/12 Q1/12
10.7
Q1/13
14.2
Q1/13
Amer Sports Results Presentation
• Cycling +1%. Sales of cycling helmets and footwear continued to grow.• Sports Instruments +4%, key initiatives hitting the market in Q2.
EBIT EUR 14.2 million (10.7)• Sales volumes up EUR 6 million• Gross margins up EUR 4 million• Operating expenses up EUR 6 million
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Ball Sports Q1/2013 (Q1/2012)
120
140
160
180
Net sales
20
25
EBIT exludingnon-recurring itemsMEUR MEUR
142.9 145.4
14.4
159.0
17.7
173.6
19.9164.0
17.4
Net sales -4%• Individual Ball Sports -1%. Sales of tennis racket was negatively influenced by
change in cadence of product launch from Q1 to Q4 to better meet market demands.
0
20
40
60
80
100
120
-5
0
5
10
15 11.5
Q1/09 Q1/10 Q1/09 Q1/10Q1/11 Q1/11Q1/12 Q1/12Q1/13 Q1/13
Amer Sports Results Presentation
g p• Team Sports -9%. As a result of the industry-wide baseball bat destocking, sales of
DeMarini baseball bats declined by 33%.• Restructuring in Brazil with move to a new Go to Market model
EBIT EUR 17.4 million (19.9)• Impacted by lower sales volumes • Operating expenses remained at last year’s level
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Fitness Q1/2013 (Q1/2012)
80
100
Net sales
4
6
8
10
EBIT excludingnon-recurring itemsMEUR
MEUR
3.356 6 59 7
3.962.5
Net sales +6%• International sales up high double-digits, Americas slightly down due to changes in
Go to Market model
0
20
40
60
-6
-4
-2
0
2
4
45.548.0 -0.7-3.4
Q1/09 Q1/10 Q1/09 Q1/10 Q1/11
56.6
Q1/11 Q1/12Q1/12
59.7
Q1/13
62.5
Q1/13
-0.4
Amer Sports Results Presentation
• The commercial business +5% and consumer business +10%• Healthy order book
EBIT EUR -0.4 million (3.9)• Decrease due to reporting and product mix changes, and sequencing of key promotion
events. Underlying profitability continuously improving.
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OUTLOOK
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• In 2013, 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 margin excluding non recurring items
Outlook for 2013
5% growth target and EBIT margin excluding non-recurring items is expected to improve from 2012.
• Amer Sports expects the trading environment to remain challenging in 2013.
• The company will continue to focus on softgoods growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence.
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WE CONTINUE MOVING
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• We continue to make strong progress in our strategic growth areas
• Positive improvement continues across KPIs
We stay the course
• We stay focused:
- Broad-based improvement according to portfolio roles
- Driving further scale and synergies across the company
- Strong growth in Softgoods
- Solid innovation pipeline
- Strong progress in commercial excellence geographic expansion and
Amer Sports Results Presentation
Strong progress in commercial excellence, geographic expansion and B2C
- Broad-based operational improvement, special focus on Winter Sport Equipment
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APPENDIX
Net sales and EBIT breakdown (MEUR)
NET SALESQ1/
2013 2012Q4/
2012Q3/
2012Q2/
2012Q1/
2012 2011Q4/
2011Q3/
2011Q2/
2011Q1/
2011Winter andOutdoor 266.5 1,221.2 402.8 411.0 150.9 256.5 1,137.6 375.0 395.7 133.4 233.5
Ball Sports 164.0 569.7 127.7 121.9 146.5 173.6 511.0 109.0 106.7 136.3 159.0
Fitness 62.5 273.1 88.0 69.0 56.4 59.7 232.2 72.9 56.8 45.9 56.6
Total 493.0 2,064.0 618.5 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1
EBITQ1/
2013 2012*Q4/
2012*Q3/
2012Q2/
2012Q1/
2012 2011Q4/
2011Q3/
2011Q2/
2011Q1/
2011Winter and Outdoor 14.2 113.8 41.7 86.8 -25.4 10.7 118.5 45.0 79.3 -15.1 9.3
Ball Sports 17.4 28.0 1.0 -2.6 9.7 19.9 25.0 -0.7 -1.1 9.1 17.7
Amer Sports Results Presentation
Fitness -0.4 17.0 7.9 4.2 1.0 3.9 10.3 4.5 2.8 -0.3 3.3
Headquarters -4.8 -20.1 -3.6 -7.1 -4.5 -4.9 -18.3 -2.5 -6.6 -4.6 -4.6Total 26.4 138.7 47.0 81.3 -19.2 29.6 135.5 46.3 74.4 -10.9 25.7
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* Excluding non-recurring items
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Business area net sales
MEURQ1/
2013Q1/
2012Ch%
Ch%* 2012
Wi t S t E i t 42 8 43 7 2 0 425 0Winter Sports Equipment 42.8 43.7 -2 0 425.0
Footwear 102.3 104.1 -2 0 314.4
Apparel 63.1 51.2 23 25 248.6
Cycling 36.6 36.3 1 1 129.0
Sports Instruments 21.7 21.2 2 4 104.2
Individual Ball Sports 95.5 97.6 -2 -1 318.8
Team Sports 68.5 76.0 -10 -9 250.9
Amer Sports Results Presentation
Fitness 62.5 59.7 5 6 273.1
Total 493.0 489.8 1 2 2,064.0
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* Change in local currencies
Net sales by region (MEUR)
MEURQ1/
2013 2012Q4/
2012Q3/
2012Q2/
2012Q1/
2012 2011Q4/
2011Q3/
2011Q2/
2011Q1/
2011EMEA 240.5 962.7 305.3 297.6 133.1 226.7 917.6 273.8 300.0 129.7 214.1
Americas 195.3 834.1 224.8 236.2 167.4 205.7 742.1 205.4 203.8 146.5 186.4
Asia Pacific 57.2 267.2 88.4 68.1 53.3 57.4 221.1 77.7 55.4 39.4 48.6
Total 493.0 2,064.0 618.5 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1
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Sales development by region in Q1/2013EMEA Americas Asia Pacific TotalMEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %*
Winter and Outdoor 182.1 6 54.0 2 30.4 2 266.5 5
20 %12 %
Winter and Outdoor Ball Sports Fitness Total
13 % 10 %
40 %
11 %
Ball Sports 42.0 1 101.2 -7 20.8 3 164.0 -4
Fitness 16.4 24 40.1 -3 6.0 41 62.5 6
Total 240.5 6 195.3 -4 57.2 6 493.0 2* In local currencies
Amer Sports Results Presentation
68 %
266.562 %
25 % 164.064 %
26 % 62.540 %
49 %
493.0
Americas EMEA Asia Pacific
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Balance sheet
MEURMarch 31,
2013March 31,
2012
Goodwill and other intangible non-current assets 504.9 500.8
Tangible non-current assets and other non-current assets 284.6 262.3
Inventories and work in progress 333.2 343.6
Receivables 513.6 481.4
Cash and cash equivalents 136.1 191.6
Shareholders’ equity 717.4 701.5
Interest bearing liabilities 534.5 601.1
Amer Sports Results Presentation
- Long-term 327.8 403.9
- Current 206.7 197.2
Other liabilities 520.5 477.1
Total 1,772.4 1,779.7
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• Heikki Takala, President and CEO, tel. +358 9 7257 8210
Contact information
• Jussi Siitonen, CFO, tel. +358 9 7257 8212
• Samppa Seppälä, Corporate Communications and IR,tel. +358 9 7257 8233
www.amersports.com
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www.amersports.compDisclaimerStatements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, areforward-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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