Second quarter 2010 results. August 5, 2010

Transcription

1 Second quarter 2010 results August 5, 2010

2 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.

3 Clear improvement in Q2/2010 compared to Q2/2009 Net sales were EUR million (284.7), +5% in local currencies Sales increased particularly in Apparel and Footwear, Team Sports and Golf Geographically, growth came especially from EMEA, +9% EBIT was EUR million (-29.4), up 12.5 million Higher gross margins, increased sales volumes EBIT margin improved in all business segments except Fitness Next season pre-orders in Winter Sports Equipment are up approximately 15% Fall/winter pre-orders in Apparel and Footwear are indicating stronger net sales growth in H2/2010 than in H1 Amer Sports expects its 2010 net sales to be approximately EUR 1.7 billion and EBIT margin to improve to the mid-single-digit level 3 Change % in local currencies

4 Gross profit percentage up by 5 points EUR million Q2/10 Q2/09 Ch % Ch %* H1/10 H1/09 Ch % Ch %* 2009 Net sales ,533.4 Gross profit Gross profit, % of net sales EBIT Net cash flow from operating activities after interest and taxes *) Change % in local currencies

5 EBIT Development Q2/2010 YoY, EUR million ,2-7, , ,6-1,5-0, , , , , , ,4 Q2/09 Growth Margin/ Mix OPEX Other Q2/10 Q2/09 W&O Ball Sports Fitness HQ Q2/10

6 Strong financial position June 30, 2010 June 30, 2009 Dec 31, 2009 Equity ratio, % Gearing, % A EUR 150 million bond was issued in June to domestic and international investors Proceeds to be used for refinancing and general corporate purposes In a strong position to cover refinancing needs in

7 Winter and Outdoor in Q2/2010 MEUR Net sales MEUR EBIT Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Net sales increased by 4% in local currencies compared to Q2/2009 In Winter Sports Equipment Q2 is seasonally low as all focus is on order intake Strong growth in Apparel and Footwear continued. Net sales increased by 10%, growth particularly from footwear Cycling net sales at last year s level due to poor spring weather conditions Sports Instruments net sales increased by 4%, growth mainly from Outdoor products EBIT improved EUR 5 million to EUR million (-29.2) Improved gross margins EUR +9 million Sales growth EUR +2 million Increased operating expenses EUR -6 million Change % in local currencies

8 Pre-orders in Winter Sports Equipment +15% 8 Especially Central Europe and Nordic doing very well XC products showing the fastest growth Also ski boots and helmets showing doubledigit growth rate Traditionally, sales has followed principle, i.e. 10% in the beginning of the year, 80% based on pre-orders and 10% from reorders Full year sales will also be impacted by the start of the season in terms of snow conditions

9 Fall/winter pre-orders in Apparel and Footwear indicate stronger growth in H2 than in H1 Growth especially in Europe, Russia, Canada and Asia Trail Running, Outdoor Performance (hiking, backpacking) and Skiwear showing the fastest growth Production capacities upgraded, enabling good deliveries 9

10 Ball Sports Q2/2010 MEUR Net sales Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 MEUR EBIT Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Net sales increased by 6% in local currencies compared to Q2/2009 Racquet Sports net sales up 2%, performance tennis racket category performing well Team Sports net sales up 7%, thanks to baseball gloves and DeMarini baseball bats Golf net sales increased by 16%, growth driven by the US Ball Sports EBIT improved EUR 9.6 million to EUR 17.0 million (7.4) Improved gross margins EUR +7 million Sales growth EUR +3 million Change % in local currencies

11 Fitness Q2/2010 MEUR Net sales Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 MEUR EBIT Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Net sales increased by 5% in local currencies compared to Q2/2009 Sales growth in EMEA and Asia Pacific more than offset a slight decline in the Americas Growth driven by commercial elliptical cross-trainers, bikes and strength as well as consumer treadmills and parts/service EBIT down by EUR 1.5 million to EUR -3.7 million (-2.2) Increased warranty costs EUR 2 million, partly offset by sales growth Change % in local currencies

12 Outlook for 2010 Amer Sports expects its 2010 net sales to be approximately EUR 1.7 billion and EBIT margin to improve to the mid-single-digit level. The sporting goods market is expected to recover moderately, but with significant regional and sports area specific differences. Winter sports equipment market has recovered due to good snow conditions during previous winter season. Amer Sports next season pre-orders in Winter Sports Equipment are up approximately 15% compared to last year. In Apparel and Footwear, fall/winter pre-orders are indicating a faster sales growth in the second half of the year compared to the first half. Amer Sports strategy is to drive profitable growth. Amer Sports continues to focus on improving its profitability through improved gross profit and tight cost control. Strict control over working capital will continue. 12

13 Focus in H2/2010 Continue organic growth Protect and further enhance gross margins Selected distribution expansion (quantity and quality) Drive operational excellence through clearly defined key performance indicators Selected capability increases

14

15 Appendix

16 Sales development by region in Q2/2010 Americas EMEA Asia Pacific Total Q2/10 Ch, YoY Q2/10 Ch, YoY Q2/10 Ch, YoY Q2/10 Ch, YoY MEUR % %, LC MEUR % %, LC MEUR % %, LC MEUR % %, LC Winter and Outdoor Ball Sports Fitness Total Winter and Outdoor Ball Sports Fitness Total Americas 66 % Americas 48 %

17 Sales Development by region in H1/2010 Americas EMEA Asia Pacific Total H1/10 Ch, YoY H1 Ch, YoY H1/10 Ch, YoY H1/10 Ch, YoY MEUR % %, LC MEUR % %, LC MEUR % %, LC MEUR % %, LC Winter and Outdoor Ball Sports Fitness Total Winter and Outdoor Ball Sports Fitness Total Americas 19 % Americas 45 % Americas 63 % Americas 71 %

18 EBIT Development H1/2010 YoY, EUR million ,3-6, ,4-1,8-7, ,6 +12,5 +1,2-2,4-7, ,3 H1/09 Growth Margin/ Mix OPEX Other H1/ ,3 H1/09 W&O Ball Sports Fitness HQ H1/10

19 Quarterly sales and EBIT breakdown Q2 Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ SALES Winter and Outdoor Ball Sports Fitness Total , ,576.6 Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ EBIT *) *) Winter and Outdoor Ball Sports Fitness Headquarters Total *) Includes a capital gain of EUR 13 million from selling the company s corporate headquarters building.

20 Quarterly sales by region Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ SALES Americas EMEA Asia Pacific Total , ,576.6

21 Business area information Q2/ Q2/ Ch Ch H1/ H1/ Ch Ch MEUR % %*) % %*) 2009 Racquet Sports Apparel and Footwear Team Sports Fitness Equipment Golf Cycling Sports Instruments Winter Sports Equipment Total ,533.4 *) Change % in local currencies

22 Balance sheet MEUR June 30, 2010 June 30, 2009 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 Shareholders equity*) Interest bearing liabilities Long-term Current Other liabilities Total 1, ,391.7 *) Including hybrid bond

23 Contact information Ms Päivi Antola, Director, IR and Financial Communications tel Mr Pekka Paalanne, Executive Vice President, CFO tel

24