Solid quarter with broad-based progress, strategic focus areas are delivering

Transcription

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

2 Profitable growth continued in Q3 Net sales EUR million (697.9): +9%, organic growth 3%* Cycling business reported as discontinued operations** Gross margin 46.2% (46.5) EBIT excl. IAC EUR million (103.8) Free cash flow (-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

3 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

4 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

5 Balance sheet EUR million September 30, 2018 September 30, 2017 Dec. 31, 2017 Net debt Shareholders equity Capital employed 1, , ,346.0 Working capital 1, Capital turnover, LTM 1.76X 1.78X 1.87X ROCE*, % Net debt/ebitda* LTM Net debt/equity * Excluding IAC 5

6 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. 6

7 Outdoor Q3/2018, continuing operations (Q3/2017) MEUR Net sales Net sales EUR million, +12%* Apparel +31%, driven by Peak Performance and Arc teryx Footwear -4%, consolidation of EMEA distribution continued, US and Japan up high-single digit Winter Sports +8% Sports Instruments +15% MEUR Q3/14 Q3/15 Q3/16 Q3/17 EBIT excluding items affecting comparability Q3/ EBIT excl. IAC EUR million (99.8) * In local currencies -40 Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 7

8 Ball Sports Q3/2018 (Q3/2017) Net sales EUR million, +4%* Team Sports grew by 9%, Baseball category sales grew by 16% EBIT excl. IAC EUR 7.7 million (6.3) EBIT margin excl. IAC 5.2% (4.5) * In local currencies MEUR MEUR Net sales Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 EBIT excluding items affecting comparability Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 8

9 Fitness Q3/2018 (Q3/2017) MEUR Net sales Net sales EUR 88.0 million, at previous year s level* Growth in APAC offset by EMEA EBIT excl. IAC EUR 1.2 million (4.5) Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 Decreased gross margin lowered the profitability EBIT excluding items affecting comparability Order book strong for Q * In local currencies 0 Q3/14 Q3/15 Q3/16 Q3/17 Q3/18 9

10 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 October 2018 Amer Sports Interim Report Presentation

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12 Appendix

13 Net sales and EBIT breakdown (continuing operations) NET SALES (MEUR) Q3/ 2018 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) Q3/ 2018* 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 13

14 Net sales by Business Unit in Q3 (continuing operations) MEUR Q3/2018 Q3/2017 Ch % Ch %* 2017 Footwear Apparel Winter Sports Equipment Sports Instruments Individual Ball Sports Team Sports Fitness * In local currencies 14

15 Sales development by region (continuing operations) EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor Ball Sports Fitness Total Outdoor Ball Sports Fitness Total 13% 59% % 12% 16% % 19% 24% % 16% 14% 46% 16% 16% % 49% 49% 40% 35% 35% 35% * Change in local currencies EMEA Americas APAC 15

16 Foreign currency translation difference (continuing operations) Q3/2018 Q3/2017 Change Reported Reported Local FX Reported, % Local FX, % Footwear % -4 % Apparel % 31 % Winter Sports Equipment % 8 % Sports Instruments % 15 % Outdoor % 12 % Individual Ball Sports % -2 % Team Sports % 9 % Ball Sports % 4 % Fitness % 0 % Total % 9 % 16

17 Balance sheet MEUR Sep 30, 2018 Sep 30, 2017 Dec 31, 2017 Goodwill and other intangible non-current assets Tangible non-current assets and other non-current assets Inventories and work in progress Receivables Cash and cash equivalents Assets held for sale Shareholders equity Interest bearing liabilities 1, Long-term Current Liabilities held for sale Other liabilities Total 2, , ,

18 IFRS 15 Adjustments (continuing operations) 18

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

20 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. 20

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