Amer Sports Corporation Interim Report January March 2012

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1 1 (19) Amer Sports Corporation INTERIM REPORT April 27, at 1:00 pm Amer Sports Corporation Interim Report January March JANUARY MARCH Net sales EUR million (January-March : EUR million). In local currencies, net sales increased by 7%. The fastest growth was in Apparel (up 29%), Footwear (up 13%) and Individual Ball Sports (former Racquet Sports and Golf, up 8%), partially offset by Winter Sports Equipment. EBIT EUR 29.0 million (25.7), up 9% in local currencies. Earnings per share EUR 0.15 (0.13). Net cash flow after investing activities EUR 97.4 million (87.1). Gearing 57% (December 31, : 47%). OUTLOOK FOR In, Amer Sports will continue to invest into executing its long-term strategy and sustaining profitable growth with special focus on leveraging Amer Sports strong brands into apparel, footwear and accessories as well as on emerging markets expansion. Amer Sports expects broad-based sales growth and profitability improvement across most business areas in, with the exception of Winter Sports Equipment where pre-orders are expected to decline and profitability to be adversely impacted by the late and mild winter in season /12, especially in North America and Southern Europe. However, the Winter Sports Equipment operational efficiency program which started in 2010 is proceeding ahead of plan and will partially help to mitigate the negative impacts of the expected pre-order decline. Amer Sports net sales in local currencies are expected to increase from in line with the company s annual 5% growth target. Leveraging Amer Sports brands into apparel, footwear and accessories continues to be the main growth driver for the company. KEY FIGURES EUR million 1 3/ 1 3/ Ch % Ch %*) Net sales ,880.8 Gross profit Gross profit % EBIT EBIT % Financing income and expenses Earnings before taxes Net result Earnings per share, EUR Net cash flow after investing activities Equity ratio, % at period end Gearing, % at period end Personnel at period end 7,158 6, ,061 Average rates used, EUR/USD *) in local currencies

2 2 (19) HEIKKI TAKALA, PRESIDENT AND CEO: We had a solid start for the year with all business areas progressing towards their targets, with the exception of Winter Sports Equipment. I m especially pleased by the apparel and footwear driven growth and by the rebounding of our Individual Ball Sports where we made real progress in tennis rackets. Also our emerging markets expansion continued according to plan with good growth in Russia, Latin America and China, supported by continuous investments into own retail. Winter Sports Equipment market is somewhat depressed due to the unfavorable weather conditions and we expect declining pre-orders. However, I m encouraged by our operational efficiency improvements in the business area. We are continuously driving synergies and scale across the company with on-going consolidation of operations. For example, we have continued to build the category-based operations in apparel, footwear and accessories and we have brought third party distributor operations in-house in several countries. This is driving our sales and gross margin improvement but it also means continuous front-heavy operational expenses. Looking forward, we continue to execute our strategy as we see that it s working. For further information, please contact: Heikki Takala, President and CEO, tel Jussi Siitonen, CFO, tel Päivi Antola, Director, Corporate Communications and IR, tel TELEPHONE CONFERENCE An English-language conference call for investors and analysts will be held today at 2:00 pm Finnish time. To participate in the call, please dial +44 (0) (UK/international dial-in number). The conference can also be followed at A recorded version and a transcript will be available later at the same web address. The replay number of the call is +44 (0) , and the access code #. SECOND QUARTER RESULTS BULLETIN Amer Sports will publish its Q2/ results bulletin on Thursday, August 2, at approximately 1:00 pm Finnish time.

3 3 (19) INTERIM REPORT JANUARY MARCH NET SALES AND EBIT Amer Sports net sales in January-March were EUR million (January March : 449.1). Net sales increased by 7% in local currencies. The fastest growth took place in Apparel, up by 29%, Footwear, up by 13%, and in Individual Ball Sports (former Racquet Sports and Golf), up by 8%. Sales in Winter Sports Equipment declined by 9%. In local currencies, sales in EMEA increased by 4%, in the Americas by 7% and in Asia Pacific by 16%. Net sales by business segment 1 3/ 1 3/ % of sales EUR million % %*) Winter and Outdoor ,137.6 Ball Sports Fitness Total ,880.8 *) in local currencies Geographic breakdown of net sales EUR million 1 3/ 1 3/ % %*) % of sales EMEA Americas Asia Pacific Total ,880.8 *) in local currencies Gross margin was 44.2% (43.3) with a broad-based improvement. Group EBIT was EUR 29.0 million (25.7). Increased sales volumes contributed approximately EUR 12.7 million to EBIT growth, higher gross margins approximately EUR 4.4 offset by increased operating expenses, net of other income and expenses, of approximately EUR million. Operating expenses increased due to volume growth related sales and distribution costs and marketing, including continuous investments in own retail. Also, the company is driving synergies and scale with on-going consolidation of operations, for example building the category model in apparel, footwear and accessories and bringing third party distributor operations in-house in several countries. These investments support Amer Sports sales and gross margin improvement. s in foreign exchange rates had a negative impact of approximately EUR -2.1 million on EBIT. EBIT by business segment EUR million 1 3/ 1 3/ % Winter and Outdoor Ball Sports Fitness Headquarters*) EBIT total *) Headquarters segment consists of Group administration, shared services functions, other non-operational income and expenses and fair valuation of share based compensations. In the first quarter of, segment operating loss increased by EUR 0.9 million due to increased operational expenses and change in fair valuation of share-based compensations and other adjustments.

4 4 (19) Net financial expenses were EUR 5.0 million (4.3) including net interest expenses of EUR 4.5 million (4.5). Net foreign exchange losses were EUR 0.5 million (gains of EUR 0.2 million). Earnings before taxes totaled EUR 24.0 million (21.4) and taxes were EUR 5.3 million (4.3). Earnings per share were EUR 0.15 (0.13). CASH FLOW AND FINANCING Net cash flow after investing activities (free cash flow) was EUR 97.4 million (87.1). Working capital in total was reduced by EUR 89.4 million (73.4). Inventories decreased by EUR 12.2 million (increase of 23.1) and receivables by EUR million (119.3). At the end of March, the Group s net debt amounted to EUR million (December 31, : 391.6). The increase was due to redemption of the hybrid bond of EUR 60.0 million and its interests of EUR 7.2 million, dividends of EUR 38.9 (36.4) million and due to foreign exchange derivatives used in hedging. The hybrid bond was issued on March 12, Interest-bearing liabilities amounted to EUR million (December 31, : 470.4) consisting of short-term debt of EUR million and long-term debt of EUR million. The average interest rate on the Group s interest-bearing liabilities was 3.6% (December 31, : 3.6). Short-term debt consists mainly of repayments of long-term loans of EUR 5.7 million (December 31, : 23.4) and commercial papers of EUR (194.2) which Amer Sports had issued in the Finnish market to fund seasonally high working capital. The total size of the commercial paper program is EUR 500 million. Cash and cash equivalents totaled EUR million (December 31, : 78.8). The syndicated loan signed in consists of a EUR 200 million revolving credit facility. Amer Sports had not used any of the revolving credit facility at the end of the review period. In March, Amer Sports issued two euro denominated bonds. The amount of EUR 150 million was launched and placed on the following terms: EUR 50 million floating rate notes due March 6, 2014; and EUR 100 million fixed 4.125% notes due March 15, Amer Sports will apply for listing of the bonds on the NASDAQ OMX Helsinki Ltd. The proceeds of the bonds will be used for repayment of debt and general corporate purposes. The equity ratio at the end of March was 40.8% (December 31, : 45.6) and gearing was 57% (December 31, : 47). CAPITAL EXPENDITURE AND INVESTMENTS The Group s capital expenditure totaled EUR 10.9 (9.3) million. Depreciation totaled EUR 9.7 million (9.0). The whole year capital expenditure is expected to be approximately EUR 50 million (51.4).

5 5 (19) BUSINESS SEGMENT REVIEWS WINTER AND OUTDOOR % %*) EUR million 1 3/ 1 3/ Net sales Winter Sports Equipment Footwear Apparel Cycling Sports Instruments **) 89.4 Net sales, total ,137.6 EBIT Personnel at period end 4,593 4, ,590 *) in local currencies **) 9% underlying growth excluding the businesses divested in Winter and Outdoor s net sales in the review period were EUR million (233.5), an increase of 8% in local currencies. Net sales growth was driven by Apparel and Footwear. In geographical terms, the strongest growth was in the Americas, up by 18%. EUR million 1 3/ 1 3/ % %*) EMEA Americas Asia Pacific Total ,137.6 *) in local currencies EBIT was EUR 10.7 million (9.3). Increased sales volumes contributed approximately EUR 8.7 million to the EBIT growth while higher gross margins contributed approximately EUR 2.5 million. Operating expenses increased by approximately EUR 13.0 million due to sales and distribution and marketing costs (all in local currencies). Winter Sports Equipment Winter Sports Equipment s net sales were EUR 43.7 million (46.9), a decrease of 9% in local currencies. Decline in sales was due to unfavorable weather conditions in key markets. Sales were down in all the main product categories. Footwear Footwear s net sales were EUR million (91.1), an increase of 13% in local currencies. The growth came from trail running and outdoor performance product segments, and was strongest in North America and emerging markets (Russia, Latin America, China). Apparel Apparel s net sales were EUR 51.2 million (38.9), an increase of 29% in local currencies. Growth occurred in all geographical regions. Cycling Cycling s net sales were EUR 36.3 million (34.4.), an increase of 5% in local currencies. The growth came mainly from cycling helmets and apparel. Sports Instruments Sports Instruments net sales were EUR 21.2 million (22.2), a decrease of 7% in local currencies. Underlying sales excluding the businesses divested in increased by 9%. The growth was supported by a Suunto GPS watch which was launched during the quarter.

6 6 (19) BALL SPORTS % %*) EUR million 1 3/ 1 3/ Net sales Individual Ball Sports**) Team Sports Net sales, total EBIT Personnel at period end 1,675 1, ,631 *) in local currencies **) Includes former Racquet Sports and Golf businesses Ball Sports net sales in the review period were EUR million (159.0), an increase of 6% in local currencies. All business areas contributed to the growth compared to last year. Individual Ball Sports (former Racquet Sports and Golf) delivered strong growth in the quarter with an increase of 8% in local currencies. In geographical terms, the strongest growth was in Japan. EUR million 1 3/ 1 3/ % %*) EMEA Americas Asia Pacific Total *) in local currencies EBIT was EUR 19.9 million (17.7). The improvement was due to increased sales volumes which contributed EUR 3.9 million to EBIT growth. Operating expenses increased by EUR 2.4 million due to increased sales and distribution and marketing costs (all in local currencies). Individual Ball Sports (former Racquet Sports and Golf) Individual Ball Sports net sales were EUR 97.6 million (87.7), an increase of 8% in local currencies. Japan is experiencing a recovery from last year s challenging market conditions. Growth was also driven by the introduction of the new tennis racket product line. Team Sports Team Sports net sales were EUR 76.0 million (71.3), an increase of 3% in local currencies. Strong momentum in baseball bats continued. FITNESS EUR million 1 3/ 1 3/ % %*) Net sales EBIT Personnel at period end *) in local currencies Fitness s net sales in the review period were EUR 59.7 million (56.6), and were at last year s level in local currencies. In geographical terms, EMEA grew by 16%. The commercial business (clubs and institutions) sales were up by 3% in local currencies. Consumer business (home use) was down by 7%.

7 7 (19) EUR million 1 3/ 1 3/ % %*) EMEA Americas Asia Pacific Total *) in local currencies EBIT was EUR 3.9 million (3.3). The improvement was due to higher gross margins which contributed approximately EUR 1.6 million to EBIT. Operating expenses increased by approximately EUR 1.1 million mainly due to increased research and development (all in local currencies). Personnel At the end of March, the number of Group employees was 7,158 (December 31, : 7,061). The increase came mainly from personnel working in sales and distribution. The increase in Headquarters and shared services was due to establishing a shared financial service center in the EMEA region which will bring scale and synergy benefits. March 31, March 31, % December 31, Winter and Outdoor 4,593 4, ,590 Ball Sports 1,675 1, ,631 Fitness Headquarters and shared services Total 7,158 6, ,061 March 31, March 31, % December 31, EMEA 4,156 4, ,185 Americas 2,367 2, ,312 Asia Pacific Total 7,158 6, ,061 CHANGES IN GROUP STRUCTURE In January the company completed the acquisition of a 5% minority share in Atomic Austria GmbH. In March the company sold its 40% minority share in Suunto Benelux BV. The transactions had no material impact on Amer Sports financial position. SHARES AND SHAREHOLDERS The company s share capital totaled EUR 292,182,204 on March 31, and the number of shares was 118,517,285. Authorizations The Annual General Meeting held on March 10, authorized the Board of Directors to decide on the repurchase of a maximum of 10,000,000 of the company s own shares ( Repurchase Authorization ). The company s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through public trading on the NASDAQ OMX Helsinki at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid for in accordance with the rules of the NASDAQ OMX Helsinki and Euroclear Finland Ltd. The Repurchase Authorization is valid for 18 months from the decision of the Annual General Meeting.

8 8 (19) The Annual General Meeting held on March 8, authorized the Board of Directors to decide on the repurchase of a maximum of 10,000,000 of the company s own shares ( Repurchase Authorization ). The company s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through public trading on the Nasdaq OMX Helsinki at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid for in accordance with the rules of the Nasdaq OMX Helsinki and Euroclear Finland Ltd. The Repurchase Authorization is valid 18 months from the decision of the Annual General Meeting. Amer Sports Board of Directors decided on January 31, to utilize the authorization given by the Annual General Meeting held on March 10, to cancel altogether 3,000,000 own shares held by the company, which equates to approximately 2.5% of the registered number of shares. The cancellation did not affect the company's share capital. Based on the Board of Directors' decision, a total of 280,029 Amer Sports shares were transferred on March 8, to the personnel involved in the company's Performance Share Plan 2010 and the Restricted Stock Plan The shares were transferred from the shares owned by Amer Sports Corporation. At the end of March, Amer Sports Corporation held a total of 719,971 shares and Amer Sports International Oy 12,125 shares of Amer Sports Corporation. The number of own shares corresponds to 0.62% (0.83) of all Amer Sports shares. Trading in shares A total of 20.1 million (18.6) Amer Sports shares with a value totaling EUR million (182.0) were traded on the NASDAQ OMX Helsinki Ltd in the review period. The average daily volume in January March was 314,083 shares (294,751). The closing price of the Amer Sports Corporation share on the NASDAQ OMX Helsinki Ltd stock exchange on March 31, was EUR 9.80 (9.06). Shares registered a high of EUR (10.96) and a low of EUR 9.03 (8.43) during the review period. The average share price was EUR (9.08). On March 31,, the company had a market capitalization of EUR 1,154.3 million (1,091.8), excluding own shares. Notification of change in shareholding under the Finnish Securities Market Act On February 7,, Amer Sports received information to the effect that Orkla ASA 's (Norwegian trade register no ) share capital and voting rights of Amer Sports had fallen below 5% on February 6,. At that time Orkla ASA owned 3,891,352 shares, which represented 3.2% of Amer Sports Corporation's share capital and voting rights (previously 6,081,352 shares). DECISIONS OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS At the Amer Sports Corporation Annual General Meeting held on March 8,, the following resolutions were approved: Adoption of the annual accounts The Annual General Meeting (AGM) approved Amer Sports financial statements for. Resolution on use of the profit shown on the balance sheet and the payment of dividend The AGM resolved to distribute a dividend of EUR 0.33 per share to be paid for the financial year ended December 31,. The dividend was paid to shareholders who were registered in the list of shareholders maintained by Euroclear Finland Ltd as of March 13,, which was the record date for the dividend payment. The dividend was paid on March 20,. Resolution on the discharge of the members of the Board of Directors and the CEO from liability

9 9 (19) The AGM granted the members of the Board of Directors and Company s President and CEO, Heikki Takala a discharge from liability for the financial year. Resolution on the remuneration of the members of the Board of Directors It was approved that the annual remuneration payable to the Board of Directors be as follows: Chairman EUR 100,000, Vice Chairman EUR 60,000, and other members EUR 50,000. No extra remuneration is paid from attending meetings of the Board of Directors or meetings of the Committees of the Board of Directors. Of the annual remuneration, 40% is paid in the form of the Company s shares and 60% in cash. Resolution on the number of the members of the Board of Directors The AGM confirmed that the number of the members of the Board of Directors is seven (7). Election of members of the Board of Directors The AGM elected Anssi Vanjoki, Ilkka Brotherus, Martin Burkhalter, Christian Fischer, Indra Åsander, Bruno Sälzer and Hannu Ryöppönen as members of the Board of Directors. The Board of Directors term of service will run until the close of the 2013 Annual General Meeting. Resolution on the remuneration of the auditor The AGM decided that the auditor s fee will be paid as invoiced. Election of auditor The AGM elected the Authorized Public Accountants PricewaterhouseCoopers Oy to act as auditor of the Company. The Audit Committee of the Board of Directors proposes that the auditor in charge of the audit is Jouko Malinen, Authorized Public Accountant. Authorizing the Board of Directors to decide on the repurchase of the Company s own shares The AGM authorized the Board of Directors to decide on the repurchase of a maximum of 10,000,000 of the company s own shares ( Repurchase Authorization ). The company s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through public trading on the Nasdaq OMX Helsinki at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid for in accordance with the rules of the Nasdaq OMX Helsinki and Euroclear Finland Ltd. The Repurchase Authorization is valid for 18 months from the decision of the Annual General Meeting. BOARD OF DIRECTORS WORKING ARRANGEMENTS At its organizing meeting immediately following the Annual General Meeting, the Amer Sports Corporation s Board of Directors appointed Anssi Vanjoki as Chairman and Ilkka Brotherus as Vice Chairman. From among its members, the Board appointed the following members to the Board Committees: Compensation Committee: Bruno Sälzer, Chairman, Christian Fischer, Anssi Vanjoki and Indra Åsander Nomination Committee: Ilkka Brotherus, Chairman, Martin Burkhalter and Anssi Vanjoki Audit Committee: Hannu Ryöppönen, Chairman, Ilkka Brotherus and Martin Burkhalter SIGNIFICANT RISKS AND UNCERTAINTIES Amer Sports business is balanced by its broad portfolio of sports and brands as well as its presence in all major markets. Short-term risks for Amer Sports are particularly associated with the late and mild winter in season /12 and its expected negative impact on Winter Sports Equipment pre-orders, with consumer demand development in North America, Europe and Japan, with labor and raw material price inflation, especially in China, and with Amer Sports' ability to manufacture, source and deliver products on a timely basis. Further information on the company s business risks and uncertainty factors is available on the company s web site at

10 10 (19) OUTLOOK FOR In, Amer Sports will continue to invest into executing its long-term strategy and sustaining profitable growth with special focus on leveraging Amer Sports strong brands into apparel, footwear and accessories as well as on emerging markets expansion. Amer Sports expects broad-based sales growth and profitability improvement across most business areas in, with the exception of Winter Sports Equipment where pre-orders are expected to decline and profitability to be adversely impacted by the late and mild winter in season /12, especially in North America and Southern Europe. However, the Winter Sports Equipment operational efficiency program which started in 2010 is proceeding ahead of plan and will partially help to mitigate the negative impacts of the expected pre-order decline. Amer Sports net sales in local currencies are expected to increase from in line with the company s annual 5% growth target. Leveraging Amer Sports brands into apparel, footwear and accessories continues to be the main growth driver for the company. Outlook given in the Financial Statements Bulletin on January 31, In, Amer Sports will continue to invest into executing its long-term strategy and sustaining profitable growth. Amer Sports expects broad-based improvement across business areas in. In Winter Sports Equipment, the slow start of the /12 season due to the warm weather in key markets is expected to have an adverse impact on the pre-orders. Apparel and Footwear pre-orders for spring/summer are up by 28% and 14%, respectively. Overall, Amer Sports net sales in local currencies are expected to increase from.

11 11 (19) TABLES The notes are an integral part of consolidated interim financial information. Unaudited EUR million CONSOLIDATED RESULTS % NET SALES ,880.8 Cost of goods sold ,063.4 GROSS PROFIT License income Other operating income R&D expenses Selling and marketing expenses Administrative and other expenses EARNINGS BEFORE INTEREST AND TAXES % of net sales Financing income and expenses EARNINGS BEFORE TAXES Taxes NET RESULT Attributable to: Equity holders of the parent company Non-controlling interests Earnings per share, EUR Earnings per share, diluted, EUR Adjusted average number of shares in issue less own shares, million Adjusted average number of shares in issue less own shares, diluted, million Equity per share, EUR ROCE, % *) ROE, % Average rates used: EUR 1.00 = USD *) 12 months rolling average

12 12 (19) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Net result Other comprehensive income Translation differences Cash flow hedges Income tax related to cash flow hedges ,5 Other comprehensive income, net of tax Total comprehensive income Total comprehensive income attributable to: Equity holders of the parent company Non-controlling interests NET SALES BY BUSINESS SEGMENT % Winter and Outdoor ,137.6 Ball Sports Fitness Total ,880.8 EBIT BY BUSINESS SEGMENT % Winter and Outdoor Ball Sports Fitness Headquarters Total GEOGRAPHIC BREAKDOWN OF NET SALES % EMEA Americas Asia Pacific Total ,880.8

13 13 (19) CONSOLIDATED CASH FLOW STATEMENT Note Earnings before interest and taxes Adjustments to cash flow from operating activities and depreciation in working capital Cash flow from operating activities before financing items and taxes Interest paid and received Income taxes paid and received Net cash flow from operating activities Acquired operations Sold operations Acquired non-controlling interests Capital expenditure on non-current tangible and intangible assets Proceeds from sale of tangible noncurrent assets Net cash flow from investing activities Net cash flow after investing activities (free cash flow) Repurchase of own shares Hybrid bond Dividends paid in debt and other financing items Net cash flow from financing activities Cash and cash equivalents on January Translation differences in cash and cash equivalents Cash and cash equivalents on March 31/December CONSOLIDATED BALANCE SHEET March 31, March 31, December 31, Note Assets Goodwill Other intangible non-current assets Tangible non-current assets Other non-current assets Inventories and work in progress Receivables Cash and cash equivalents Total assets 2 1, , ,818.0 Shareholders equity and liabilities Shareholders equity

14 14 (19) Long-term interest-bearing liabilities Other long-term liabilities Current interest-bearing liabilities Other current liabilities Provisions Total shareholders equity and liabilities 1, , ,818.0 Equity ratio, % Gearing, % EUR 1.00 = USD Hybrid bond CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY Note Share capital Premium fund Fund for own shares Translation differences Fair value and other reserves Invested unrestricted equity reserve Retained earnings Total Balance at Jan. 1, Other comprehensive income: Translation differences Cash flow hedges Income tax related to cash flow hedges Net result Total comprehensive income Transactions with owners: Repurchase of own shares Sharebased incentive programs Dividend distribution Interest on hybrid bond Balance at March 31,

15 15 (19) Balance at Jan. 1, Other comprehensive income: Translation differences Cash flow hedges Income tax related to cash flow hedges Net result Total comprehensive income Transactions with owners: Cancellation of own shares Sharebased incentive programs Dividend distribution Hybrid bond Balance at March 31, Noncontrolling interests Total shareholders equity Note Balance at Jan. 1, Other comprehensive income: Translation differences Cash flow -4.2

16 16 (19) hedges Income tax related to cash flow hedges 1.1 Net result 17.1 Total comprehensive income -3.8 Transactions with owners: Repurchase of own shares -9.2 Sharebased incentive programs 5.9 Dividend distribution Interest on hybrid bond -7.2 Other change Balance at March 31, Balance at Jan. 1, Other comprehensive income: Translation differences Cash flow hedges -8.8 Income tax related to cash flow hedges 2.3 Net result 18.7 Total comprehensive income -0.2 Transactions with owners: Sharebased 3.2

17 17 (19) incentive programs Dividend distribution Hybrid bond Other change Balance at March 31, QUARTERLY BREAKDOWN OF NET SALES AND EBIT Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ NET SALES Winter and Outdoor Ball Sports Fitness Total Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ EBIT Winter and Outdoor Ball Sports Fitness Headquarters Total THE NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES The interim financial information has been prepared in accordance with IAS 34 Interim Financial Reporting and in compliance with IFRS standards and interpretations in force as at January 1,, as adopted by the EU. The IFRS recognition and measurement principles as described in the annual financial statements for have also been applied in the preparation of the interim financial information, with the changes mentioned below. The relative proportion of the estimated tax charge for the full financial year has been charged against the result for the period. Standards, interpretations and amendments adopted from the beginning of : The following new standards, interpretations and amendments have been adopted when applicable: IFRS 7 (amendment) and IFRS 12 (amendment) and the annual improvements. The amendments did not have any material impact on the consolidated financial statements. 2. SEGMENT INFORMATION Amer Sports has three business segments: Winter and Outdoor, Ball Sports and Fitness. The accounting policies for segment reporting do not differ from the Group s accounting policies. The decisions concerning assessing the performance of segments and allocation of resources to the segments are based on segments net sales and earnings before interest and taxes. The chief operating decision maker of Amer Sports is the Executive Board. There were no intersegment business operations during the reported periods.

18 18 (19) Earnings before interest and taxes Financing income and expenses Earnings before taxes Net sales Assets Winter and Outdoor Ball Sports Fitness Segments, total ,439.5 Unallocated items*) Group total ,773.5 Winter and Outdoor Ball Sports Fitness Segments, total ,313.7 Unallocated items*) Group total , / Winter and Outdoor 1, Ball Sports Fitness Segments, total 1, ,598.2 Unallocated items*) Group total 1, ,818.0 *) Earnings before interest and taxes include income and expenses of corporate headquarters. GEOGRAPHIC BREAKDOWN OF NET SALES EMEA Americas Asia Pacific Total , DERIVATIVE FINANCIAL INSTRUMENTS March 31, March 31, December 31, Nominal value Foreign exchange derivatives Interest rate swaps Cross currency swaps Fair value Foreign exchange derivatives Interest rate swaps Cross currency swaps HYBRID BOND On March 12,012 Amer Sports redeemed the EUR 60 million hybrid bond issued on March 12, 2009.

19 19 (19) 5. DIVIDENDS Dividends distributed in March by Amer Sports to its shareholders and minority shareholders of its subsidiaries amounted to EUR 38.9 million relating to the year ending on December 31, (: 36.4). Dividends distributed to the shareholders of Amer Sports Corporation were EUR 0.33 per share and in total EUR 38.9 million (: EUR 0.30 per share and in total EUR 36.3 million). 6. CONTINGENT LIABILITIES AND SECURED ASSETS March 31, March 31, December 31, Guarantees Liabilities for leasing and rental agreements Other liabilities There are no guarantees or contingencies given for the management of the company, the shareholders or the associated companies. 7. ONGOING LITIGATIONS The Group has extensive international operations and is involved in a number of legal proceedings, including product liability suits. The Group does not expect the outcome of any legal proceedings currently pending to have materially adverse effect upon its consolidated results or financial position. 8. SEASONALITY Although Amer Sports operates in a number of sporting goods segments during all four seasons, its business is subject to seasonal fluctuations. Historically, the third and fourth quarters of a financial year have been the strongest quarters for Amer Sports in terms of both net sales and profitability, mainly because sales of winter sports equipment ahead of the winter season typically take place during the third and fourth quarters. The summer season for ball sports balances seasonality to a certain extent, as the strongest quarters for the Ball Sports segment are the first and second quarters. Usually the net cash flow from operating activities is very strong in the first quarter when the income from winter sports equipment realizes. Especially during the third quarter, the net cash flow from operating activities is tied up in working capital. All forecasts and estimates presented in this report are based on the management s current judgment of the economic environment. The actual results may differ significantly. AMER SPORTS CORPORATION Board of Directors