Normal Q2, strategic priorities are delivering, solid view on H2

Transcription

1 Amer Sports Q2/2018 Normal Q2, strategic priorities are delivering, solid view on H2 July 26, 2018 Heikki Takala, President and CEO

2 Normal Q2 Net sales EUR million (495.8), +2%* Top line mostly in-season orders EBIT excl. IAC EUR million (-22.8) Reflecting spending into H2 and beyond EPS excl. IAC EUR (-0.20) Working Capital reflects inventory build-up for H2 * In local currencies The comparative figures for 2017 have been restated in accordance with IFRS 15 Revenue from contracts with customers and IFRS 9 Financial instruments 2

3 Strategic priorities are delivering Direct to Consumer +15% to EUR 50 million in sales: own retail +11% (same store growth +4%), e-commerce +22% Modern sales channels ~30% of sales Arc teryx double-digit growth and strong order book China +21% US starting to rebound Footwear distribution consolidation continues, expected to re-ignite growth in

4 Solid view on H2 Double digit growth in pre-order/order book: Winter Sports Equipment Arc teryx Sports Instruments Precor won its largest ever two-year customer contract Peak Performance contributes to profit and growth as of Q3 4

5 Peak Performance accelerates our transformation Faster growth and profitability in Apparel, better asset efficiency 5

6 Balance sheet EUR million June 30, 2018 June 30, 2017 Dec. 31, 2017 Net debt Shareholders equity Capital employed 1, , ,346.0 Working capital Capital turnover 1.83X 1.78X 1.87X ROCE*, % Net debt/ebitda* LTM Net debt/equity * Excluding IAC 6

7 Development of Gross Margin and USD hedges EUR/USD USD/EUR Hedges 45.2% Gross Margin % USD/EUR Spot 44.9% 45.3% Q2 LTM Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 7

8 H1 OPEX growth at last year level Topline driven Topline driven Sales/customer service personnel Sales commissions Retails stores (> 1year operative) Outbound freight Warehousing costs Marketing: sell-in, sell-through Warranties, bad debts Investment driven Maintenance driven Investment driven R&D Sales personnel: distribution expansion New retail stores (< 1year operative) Digital platform Consumer marketing (acceleration) Maintenance driven G&A H1-17 H1-18 FY-17 6/18 LTM 8 26 July 2018 Amer Sports Half Year Financial Report Presentation

9 Outdoor Q2/2018 (Q2/2017) MEUR 600 Net sales 500 Net sales EUR million, +4%* Apparel +10%, driven by Arc teryx Footwear -2%, consolidation of global distribution footprint continued Q2/14 Q2/15 Q2/16 Q2/17 Q2/18 Winter Sports pre-orders +10% Sports Instruments +23% Cycling -10%: declined OEM orders, low demand in wholesale channel EBIT excl. IAC EUR million (-29.4) * In local currencies MEUR Q2/14 EBIT excluding items affecting comparability Q2/15 Q2/16 Q2/17 Q2/18 9

10 Ball Sports Q2/2018 (Q2/2017) MEUR Net sales Net sales EUR million, at previous year s level* EBIT excl. IAC EUR 11.0 million (9.3) 20 0 Q2/14 Q2/15 Q2/16 Q2/17 Q2/18 Solid profitability improvement: EBIT margin excl. IAC 6.9% (5.5) * In local currencies MEUR EBIT excluding items affecting comparability Q2/14 Q2/15 Q2/16 Q2/ Q2/18 10

11 Fitness Q2/2018 (Q2/2017) MEUR Net sales Net sales EUR 79.9 million, at previous year s level* Strong growth in China and Japan Significant new product and customer expansions EBIT excl. IAC EUR 0.0 million (2.5) Q2/14 Q2/15 Q2/16 Q2/17 EBIT excluding items affecting comparability Q2/18 Sales and EBIT biased to the second half of the year Precor just closed the largest customer contract ever with Planet Fitness, worth at least USD 30 million over 2 years, starting in Q4 * In local currencies Q2/14 Q2/15 Q2/16 Q2/ Q2/18 11

12 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 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 consumerled transformation. 12

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14 Appendix

15 Net sales and EBIT breakdown NET SALES (MEUR) Q2/ 2018 Q1/ Q4/ 2017 Q3/ 2017 Q2/ 2017 Q1/ Q4/ 2016 Q3/ 2016 Q2/ 2016 Q1/ 2016 Outdoor , , Ball Sports Fitness Total , , EBIT (MEUR) Q2/ 2018* Q1/ * Q4/ 2017* Q3/ 2017* Q2/ 2017* Q1/ 2017* 2016* Outdoor Ball Sports Fitness Headquarters Total Q4/ 2016* Q3/ 2016* Q2/ 2016 Q1/ 2016* * Excl. IAC 15

16 Net sales by Business Unit in Q2 MEUR Q2/2018 Q2/2017 Ch % Ch %* 2017 Footwear Apparel Winter Sports Equipment Cycling Sports Instruments Individual Ball Sports Team Sports Fitness * In local currencies 16

17 Sales development by region EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor Ball Sports Fitness Total Outdoor Ball Sports Fitness Total 20% 51% % 11% 20% % 20% 20% % 16% 17% 36% 16% 16% % 49% 49% 47% 35% 35% 35% * Change in local currencies EMEA Americas APAC 17

18 Foreign currency translation difference Q2/2018 Q2/2017 Change Reported Reported Local FX Reported, % Local FX, % Footwear % -2% Apparel % 10% Winter Sports Equipment % 13% Cycling % -10% Sports Instruments % 23% Outdoor % 4% Individual Ball Sports % 0% Team Sports % 0% Ball Sports % 0% Fitness % 0% Total % 2% 18

19 Balance sheet MEUR June 30, 2018 June 30, 2017 December 31, 2017 Goodwill and other intangible non-current assets Tangible non-current assets and other noncurrent assets Inventories and work in progress Receivables Cash and cash equivalents Shareholders equity Interest bearing liabilities Long-term Current Other liabilities Total 2, , ,

20 Loan portfolio and maturity structure Cash EUR million and unused committed facilities EUR 200 million (June 30, 2018) Commercial paper program in size of EUR 500 million; out of which EUR 30.0 million utilized Scheduled H2/2018 repayments of longterm loans EUR million EURm Average interest rate of loan portfolio % (June 30, %) => Bridge loan (Peak) Bonds Bank loans Commercial Papers Other 20

21 Next 12 months net cash flows and related hedges, main FX pairs Main FX pairs Hedge% Next 12mth flow (EURm) ECB Fixing rate Hedge FX 18 Hedge FX 19 USD purchases against EUR 100% USD sales against EUR 100% GBP sales against EUR 100% CHF sales against EUR 100% USD (net)purchases against CAD 100%

22 IFRS 15 Adjustments 22

23 Contact information Heikki Takala, President and CEO Tel Jussi Siitonen, CFO Tel Samppa Seppälä, Director, Corporate Communications and IR Tel

24 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 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. 24

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