2016 A year of record sales and profit, and a year of external challenges

Transcription

1 Amer Sports 2016 A year of record sales and profit, and a year of external challenges February 9, 2017 Heikki Takala, President and CEO

2 Q4 2016: In a challenging market, we continued to pace our growth Net sales EUR million (783.7 ), -2%* Solid growth in Apparel Postponed launches in Sports Instruments, delayed impact from launches in Fitness Winter Sports Equipment and Footwear deliveries peaked earlier in the year Gross margin 44.7% (43.8%) EBIT excl. IAC EUR 81.3 million (84.0) Investments into 2020 acceleration priorities continued Free cash flow EUR million (159.4) * In local currencies 2 9 February 2017 Amer Sports Financial Statements

3 Net sales by Business Unit in Q4 MEUR Q4/2016 Q4/2015 Ch % Ch %* Footwear Apparel Winter Sports Equipment Cycling Sports Instruments Individual Ball Sports Team Sports Fitness *In local currencies 3 9 February 2017 Amer Sports Financial Statements

4 2016: Record net sales, gross margin and EBIT Net sales EUR 2,622.1 million (2,534.4), +4%*. Organic growth +3%* Gross margin 46.3% (45.2%), OPEX 38.2% (37.1%) EBIT EUR million (212.1), EBIT margin 8.5% (8.4%)** Free cash flow EUR 64.4 million (121.7), 51% of net profit Capital repayment proposal EUR 0.62 per share (dividend 0.55) * In local currencies ** Excl. IAC 4 9 February 2017 Amer Sports Financial Statements

5 Net sales by Business Unit in 2016 MEUR Ch % Ch %* Footwear Apparel Winter Sports Equipment Cycling Sports Instruments Individual Ball Sports Team Sports Fitness *In local currencies 5 9 February 2017 Amer Sports Financial Statements

6 B2C and Digital acceleration main OPEX growth drivers, maintenance down Topline driven Sales/customer service personnel Sales commissions Retails stores (> 1year operative) Outbound freight 41 Warehousing costs Marketing: sell-in, sell-through Warranties, bad debts Topline driven Investment driven Maintenance driven FY FY-15 FY-16-5 Investment driven R&D Sales personnel: distribution expansion New retail stores (< 1year operative) Digital platform Consumer marketing (acceleration) Maintenance driven G&A 6 Amer Sports Financial Statements

7 Cash Flow followed the historical pattern (excl. 2015) EURm 175,0 150,0 125,0 100, ,0 50,0 25, ,0-25,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4-50,0-75,0-100,0-125,0-150, Amer Sports Financial Statements

8 Balance sheet EUR million Dec. 31, 2016 Dec. 31, 2015 Net debt Shareholder s equity 1, Capital employed 1, ,409.9 Working capital Capital turnover ROCE, % Net debt/ebitda Net debt/equity Equity ratio, % February 2017 Amer Sports Financial Statements

9 What worked: we reached several milestones in 2016 Softgoods +11% to EUR 1 billion, up by EUR 700 million vs. 7 years ago Arc teryx +21% in 2016 Business to Consumer +27% to EUR 200+ million (EUR 36 million in 2010) 27 new own stores opened, ~290 stores in total, ~70 e-commerce stores USA +6%, bypassed USD 1 billion China +26% to EUR 100+ million (EUR 16 million in 2010) Company Gross Margin all time high 46+% Winter Sports Equipment profitability improved further, despite several mild winters 9 9 February 2017 Amer Sports Financial Statements

10 What did not work and our solution Market slowdown We pace our growth and protect gross margin We continue strategic investments We expand the 2016 restucturing program, ~100 EBIT margin basis points in the next 24 months Sports Instruments product launches postponed, delayed impact from Fitness launches Pipeline and impact confirmed for Q2 onwards 10 9 February 2017 Amer Sports Financial Statements

11 Our pipeline of new initiatives is strong 20+ new stores Warehouse capacity improvement 11 9 February 2017 Amer Sports Financial Statements

12 Outlook

13 Outlook for 2017 In 2017, Amer Sports net sales in local currencies are expected to increase from 2016, despite short-term market softness. The growth is expected to be biased to the second half of the year. The company will continue to focus on growing the core business and the five prioritized areas: Apparel and Footwear, US, China, Business to Consumer, as well as digitally connected devices and services February 2017 Amer Sports Financial Statements

14 Accelerating toward 2020

15 The way forward: toward 2020 Grow the core Focus on accelerating profitable growth especially in the 5 prioritized areas: Apparel and Footwear (2020 target: MEUR 1,500+) US (MUSD 1,500+) China (MEUR 200+) Business to Consumer (MEUR 400+) Digitally Connected Devices and Services (MEUR 600+) Ongoing investment into renewal and company transformation 15 9 February 2017 Amer Sports Financial Statements

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17 APPENDIX

18 Record sales and operating profit EUR million Ch % Ch %* Net sales 2, , Gross profit 1, , Gross profit, % of net sales EBIT excluding IAC EBIT % excluding IAC IAC EBIT Free cash flow *) In local currencies **) Cash flow from operating activities - net capital expenditures change in restricted cash (Net capital expenditures: Total capital expenditure less proceeds from sale of assets) February 2017 Amer Sports Financial Statements

19 Net sales and EBIT breakdown NET SALES (MEUR) 2016 Q4/ 2016 Q3/ 2016 Q2/ 2016 Q1/ Q4/ 2015 Q3/ 2015 Q2/ 2015 Q1/ 2015 Outdoor 1, , Ball Sports Fitness Total 2, , EBIT (MEUR) 2016 Q4/ 2016 Q3/ 2016* Q2/ 2016 Q1/ 2016* 2015* Q4/ 2015 Q3/ 2015 Q2/ 2015* Q1/ 2015* Outdoor Ball Sports Fitness Headquarters Total * Excl. IAC 19 9 February 2017 Amer Sports Financial Statements

20 MEUR Outdoor 2016 (2015) Net sales MEUR Q4/12 Q4/13 Q4/14 Q4/15 Q4/16-40 Q4/12 EBIT excluding items affecting comparability 52.5 Q4/ Q4/ Q4/ Q4/16 Net sales EUR 1,601.8 million, +5%* Apparel +13%, Footwear +8% Winter Sports Equipment -4% due to mild winters. Cycling +8%. Acquisition of ENVE Composites LLC. Sports Instruments at the level of 2015, postponed product launches. EBIT excl. IAC EUR million (161.2 ) *In local currencies 20 9 February 2017 Amer Sports Financial Statements

21 Ball Sports 2016 (2015) MEUR Q4/12 Net sales Q4/13 Q4/ Q4/15 Q4/16 MEUR EBIT excluding items affecting comparability Q4/12 Q4/13 Q4/ Q4/ Q4/16 Net sales EUR million, +4* Growth in Team Sports, especially on baseball, was offset by challenging market conditions in Individual Ball Sports and US customer bankruptcies EBIT excl. IAC EUR 44.8 million (46.6) *In local currencies 21 9 February 2017 Amer Sports Financial Statements

22 Fitness 2016 (2015) MEUR Net sales Q4/12 Q4/13 Q4/14 Q4/15 Q4/16 Q4/12 Q4/ EBIT excluding items affecting comparability Q3/14 Q4/ Q4/16 Net sales EUR million, -4%* Delayed impact of some product launches. EBIT excl. IAC EUR 17.0 million (31.2) *In local currencies 22 9 February 2017 Amer Sports Financial Statements

23 Net sales by region Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ MEUR EMEA 1, , Americas 1, , Asia Pacific Total 2, , February 2017 Amer Sports Financial Statements

24 Sales development by region in 2016 EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor , Ball Sports ,1 4 Fitness Total 1, , ,4 4 2, * Change in local currencies Outdoor Ball Sports Fitness Total 15% 58% 11% 18% 17% 23% 14% 43% 27% 1, % , % 60% 68% EMEA Americas APAC 24 9 February 2017 Amer Sports Financial Statements

25 Foreign currency translation difference EUR million Business Area Reported Reported Local Currency Translation Difference Footwear Apparel Winter Sports Equipment Cycling Sports Instruments Outdoor 1, , , Individual Ball Sports Team Sports Ball Sports Fitness Total 2, , , February 2017 Amer Sports Financial Statements

26 Free cash flow Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q Free cash flow: Cash flow from operating activities - net capital expenditures change in restricted cash (Net capital expenditures: Total capital expenditure less proceeds from sale of assets) February 2017 Amer Sports Financial Statements

27 Refinancing needs well covered Cash EUR million and unused committed facilities EUR 150 million (Dec 31, 2016) Commercial paper program in size of EUR 500 million, out of which EUR 49.9 million utilized No scheduled repayments of long-term loans in Average interest rate of loan portfolio 2.0% (Dec 31, %) 300,0 250,0 200,0 150,0 100,0 50,0 Bonds Bank loans Commercial Papers Other 0, February 2017 Amer Sports Financial Statements

28 Next 12 months net cash flows and related hedges, main FX pairs Main FX pairs Hedge % Next 12mth flow (EURm) Spot (@ ) Hedge FX 17 Hedge FX 18 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% February 2017 Amer Sports Financial Statements

29 Contact information Heikki Takala, President and CEO Tel Jussi Siitonen, CFO Tel Päivi Antola, Director, Corporate Communications and IR Tel February 2017 Amer Sports Financial Statements

30 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 February 2017 Amer Sports Financial Statements

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