Amer Sports Q2/2018 Normal Q2, strategic priorities are delivering, solid view on H2 July 26, 2018 Heikki Takala, President and CEO
Normal Q2 Net sales EUR 483.0 million (495.8), +2%* Top line mostly in-season orders EBIT excl. IAC EUR -25.5 million (-22.8) Reflecting spending into H2 and beyond EPS excl. IAC EUR -0.22 (-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
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 2019 3
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
Peak Performance accelerates our transformation Faster growth and profitability in Apparel, better asset efficiency 5
Balance sheet EUR million June 30, 2018 June 30, 2017 Dec. 31, 2017 Net debt 820.2 584.4 460.7 Shareholders equity 841.9 837.8 885.4 Capital employed 1,662.2 1,422.3 1,346.0 Working capital 759.5 731.6 755.4 Capital turnover 1.83X 1.78X 1.87X ROCE*, % 15.0 13.4 14.8 Net debt/ebitda* LTM 2.88 2.18 1.62 Net debt/equity 0.97 0.69 0.52 * Excluding IAC 6
Development of Gross Margin and USD hedges EUR/USD 1.400 1.350 1.300 USD/EUR Hedges 45.2% Gross Margin 1.250 1.200 46.3% 1.150 1.100 1.050 USD/EUR Spot 44.9% 45.3% Q2 LTM 1.000 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 7
H1 OPEX growth at last year level Topline driven 14 6 13 5 18 3 20 17 2 9 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 16-8 4 4-6 6 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
Outdoor Q2/2018 (Q2/2017) MEUR 600 Net sales 500 Net sales EUR 244.1 million, +4%* Apparel +10%, driven by Arc teryx 400 300 200 174.8 209.7 231.0 241.6 244.1 Footwear -2%, consolidation of global distribution footprint continued 100 0 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 -30.7 million (-29.4) * In local currencies MEUR 120 100 80 60 40 20-22.0 0-20 -40 Q2/14 EBIT excluding items affecting comparability -18.7-16.0-29.4-30.7 Q2/15 Q2/16 Q2/17 Q2/18 9
Ball Sports Q2/2018 (Q2/2017) MEUR 200 180 160 140 136.2 169.4 Net sales 165.5 169.8 159.0 120 Net sales EUR 159.0 million, at previous year s level* 100 80 60 40 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 20 18 16 14 12 10 8 6 4 2 0 EBIT excluding items affecting comparability 11.3 9.3 7.7 6.3 Q2/14 Q2/15 Q2/16 Q2/17 11.0 Q2/18 10
Fitness Q2/2018 (Q2/2017) MEUR 140 120 Net sales Net sales EUR 79.9 million, at previous year s level* 100 80 60 65.1 82.0 80.9 84.4 79.9 Strong growth in China and Japan Significant new product and customer expansions EBIT excl. IAC EUR 0.0 million (2.5) 40 20 0 16 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 14 12 10 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 8 6 4 2 0 5.1 4.1 4.5 2.5 Q2/14 Q2/15 Q2/16 Q2/17 0.0 Q2/18 11
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 2017. 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
Appendix
Net sales and EBIT breakdown NET SALES (MEUR) Q2/ 2018 Q1/ 2018 2017 Q4/ 2017 Q3/ 2017 Q2/ 2017 Q1/ 2017 2016 Q4/ 2016 Q3/ 2016 Q2/ 2016 Q1/ 2016 Outdoor 244.1 381.2 1,674.7 537.9 500.5 241.6 394.7 1,601.8 490.7 505.7 231.0 374.4 Ball Sports 159.0 164.2 659.0 163.0 141.2 169.8 185.0 671.1 171.9 147.0 165.5 186.7 Fitness 79.9 78.4 375.6 118.9 87.8 84.4 84.5 349.2 109.8 84.1 80.9 74.4 Total 483.0 623.8 2,709.3 819.8 729.5 495.8 664.2 2,622.1 772.4 736.8 477.4 635.5 EBIT (MEUR) Q2/ 2018* Q1/ 2018 2017* Q4/ 2017* Q3/ 2017* Q2/ 2017* Q1/ 2017* 2016* Outdoor -30.7 33.7 178.5 81.0 100.1-29.4 26.8 196.9 69.7 105.5-16.0 37.7 Ball Sports 11.0 14.9 45.2 13.8 6.3 9.3 15.8 44.8 12.8 5.3 7.7 19.0 Fitness 0.0 0.1 20.1 12.4 4.5 2.5 0.7 17.0 6.8 5.4 4.5 0.3 Headquarters -5.8-8.3-29.3-9.5-6.8-5.2-7.8-37.0-8.0-9.7-8.3-11.0 Total -25.5 40.4 167.8 97.7 104.1-22.8 35.5 221.7 81.3 106.5-12.1 46.0 Q4/ 2016* Q3/ 2016* Q2/ 2016 Q1/ 2016* * Excl. IAC 15
Net sales by Business Unit in Q2 MEUR Q2/2018 Q2/2017 Ch % Ch %* 2017 Footwear 96.4 101.3-5 -2 500.8 Apparel 63.5 60.4 5 10 482.3 Winter Sports Equipment 15.6 14.4 8 13 415.2 Cycling 27.9 31.5-11 -10 134.7 Sports Instruments 40.7 34.0 20 23 141.7 Individual Ball Sports 78.2 82.4-5 0 296.9 Team Sports 80.8 87.4-8 0 362.1 Fitness 79.9 84.4-5 0 375.6 * In local currencies 16
Sales development by region EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 124.2 1 71.5 4 48.4 15 244.1 4 Ball Sports 31.0-2 110.0 1 18.0-3 159.0 0 Fitness 16.3-6 47.5-1 16.1 12 79.9 0 Total 171.5 0 229.0 1 82.5 10 483.0 2 Outdoor Ball Sports Fitness Total 20% 51% 244.1 29% 11% 20% 159.0 69% 20% 20% 79.9 60% 16% 17% 36% 16% 16% 483.0 49% 49% 49% 47% 35% 35% 35% * Change in local currencies EMEA Americas APAC 17
Foreign currency translation difference Q2/2018 Q2/2017 Change Reported Reported Local FX Reported, % Local FX, % Footwear 96.4 101.3 98.0-5% -2% Apparel 63.5 60.4 58.0 5% 10% Winter Sports Equipment 15.6 14.4 13.8 8% 13% Cycling 27.9 31.5 30.7-11% -10% Sports Instruments 40.7 34.0 33.1 20% 23% Outdoor 244.1 241.6 233.6 1% 4% Individual Ball Sports 78.2 82.4 78.5-5% 0% Team Sports 80.8 87.4 81.2-8% 0% Ball Sports 159.0 169.8 159.7-6% 0% Fitness 79.9 84.4 79.9-5% 0% Total 483.0 495.8 473.0-3% 2% 18
Balance sheet MEUR June 30, 2018 June 30, 2017 December 31, 2017 Goodwill and other intangible non-current assets 932.0 679.9 649.2 Tangible non-current assets and other noncurrent assets 345.0 329.0 340.5 Inventories and work in progress 637.5 569.5 481.3 Receivables 594.0 547.9 772.2 Cash and cash equivalents 152.9 246.4 358.4 Shareholders equity 841.9 837.8 885.4 Interest bearing liabilities 973.1 830.8 819.1 - Long-term 592.7 828.9 632.8 - Current 380.4 1.9 186.3 Other liabilities 846.4 704.1 897.6 Total 2,661.4 2,372.7 2,602.1 19
Loan portfolio and maturity structure Cash EUR 152.9 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 197.5 million EURm 400 350 300 250 200 150 100 Average interest rate of loan portfolio 50 2.1% (June 30, 2017 2.5%) 0 2018 2019 2020 2021 2022 2023=> Bridge loan (Peak) Bonds Bank loans Commercial Papers Other 20
Next 12 months net cash flows and related hedges, main FX pairs Main FX pairs Hedge% Next 12mth flow (EURm) ECB Fixing rate (@29.06.18) Hedge FX 18 Hedge FX 19 USD purchases against EUR 100% -408 1.17 1.14 1.22 USD sales against EUR 100% +68 1.17 1.19 1.24 GBP sales against EUR 100% +87 0.89 0.89 0.90 CHF sales against EUR 100% +51 1.16 1.12 1.16 USD (net)purchases against CAD 100% -160 1.32 1.28 1.26 21
IFRS 15 Adjustments 22
Contact information Heikki Takala, President and CEO Tel. +358 20 712 2510 Jussi Siitonen, CFO Tel. +358 20 7122511 Samppa Seppälä, Director, Corporate Communications and IR Tel. +358 50 5680533 www.amersports.com 23
www.amersports.com 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 1995. 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