AMER SPORTS 2013 Continued growth and improving profitability January 28, 2014, Heikki Takala, President and CEO
Q4: strong double-digit growth, improved profitability Net sales EUR 657.4 million (618.5), +12% in local currencies - Footwear +25%, Apparel +21%, Sports Instruments +18%, Fitness +16%, Winter Sports Equipment +8%, Ball Sports +5%, Cycling 0% - EMEA +13%, Americas +8%, APAC +19% - B2C +27%, Emerging markets +17% Gross margin 42.0% (41.9%) EBIT EUR 64.7 million (47.0 excl. NRI ), driven by increased sales volumes - EBIT margin 9.8% (7.6% excl. NRI) Net cash flow EUR 143.9 million (96.7), driven by decreased working capital In local currencies 2
2013: broad-based and profitable growth Record net sales EUR 2,136.5 million (2,064.0), +8% in local currencies - Apparel +21%, Sports Instruments +17%, Fitness +13%, Footwear +11% - Winter Sports Equipment 3%, Ball Sports +1%, Cycling +1% - EMEA +8%, Americas +5%, APAC +15% - B2C +32%, Emerging markets growth +21% Gross margin 43.6% (43.6%): last year level safeguarded despite increased air freight and currency headwinds EBIT EUR 154.9 million (138.7 excl. NRI), EBIT margin 7.3% (6.7% excl. NRI) - Driven by increased sales volumes - OPEX 37.0% (37.7%). Strategic OPEX investments continued Dividend proposal EUR 0.40 per share (0.35) In local currencies 3
Record sales improved profitability EUR million 2013 2012 Ch % Ch %* Net sales 2,136.5 2,064.0 4 8 Gross profit 932.2 900.6 4 7 Gross profit, % of net sales 43.6 43.6 EBIT excluding non-recurring items 154.9 138.7 12 EBIT % excluding non-recurring items 7.3 6.7 Non-recurring items 0.0-24.8 EBIT total 154.9 113.9 36 Net cash flow after investing activities 42.5 71.8 *) In local currencies 4
Continuous investments into future growth EUR million 2013 2012 2011 Topline driven OPEX increase 22.5 10.3 19.1 Investment OPEX increase 20.9 31.9 26.1 Maintenance OPEX increase -2.3 10.9 3.7 Total increase in OPEX 41.1 53.1 48.9 In local currencies Operating expenses increased by EUR 41 million in local currencies Continuous investments into future growth with focus on softgoods, sales coverage, emerging markets and business to consumers Restructuring continued, impacts maintenance OPEX 5
Balance sheet remains healthy EUR million Dec. 31, 2013 Dec. 31, 2012 Net debt 431.7 434.3 Shareholders equity 761.3 731.8 Capital employed 1,193.0 1,166.1 Working capital 457.2 400.1 Net debt / EBITDA, excluding non-recurring items 2.2 2.4 Gearing, % 57 59 Equity ratio, % 37.5 39.1 6
Strong cash flow in Q4 MEUR 150 H2: EUR -41m H2: EUR +19m H2: EUR +25m 100 50 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 -50-100 -150 7
No significant mid-term refinancing needs Cash EUR 270.0 million and unused committed facilities EUR 240 million (December 31, 2013) Commercial paper program EUR 500 million, of which EUR 119.6 million issued Scheduled long-term payments in 2014 EUR 62.5 million and in 2015 EUR 157.4 million Average interest rate of the loan portfolio is 3.5% (3.6) 225m 200m 175m 150m 125m 100m 75m 50m 25m 0m 2014 2015 2016 2017 2018=> Pension Loan Bonds Bank loans Commercial Papers Other 8
Summary: progress vs. financial targets TARGET 2009 2010 2011 2012 2013 Growth Profitability Cash Flow Balance Sheet Organic FX-neutral 5% annual growth EBIT of at least 10% of net sales Annual free cash flow equal to net profit Net Debt/EBITDA ratio at or below 3X -6% 8% 9% 5% 8% 3.2% 6.2% 7.2% 6.7% 7.3% 4.5X 0.7X -0.2X 0.9X 0.5X 3.6X 2.2X 2.3X 2.4X 2.2X 9
OUTLOOK
Outlook for 2014 Amer Sports expects global trading conditions to remain challenging, with some regional improvements. In 2014, Amer Sports net sales growth in local currencies is expected to meet at minimum the company s long-term annual 5% growth target and EBIT excluding non-recurring items is expected to improve from 2013. The company will continue to focus on softgoods growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence. 11
WE CONTINUE MOVING
We continue to make solid progress in our strategic priorities Majority of businesses improving according to their portfolio role, driving scale and synergies - Strong growth in softgoods (EUR 715 million), emerging markets, B2C, etc. - Winter Sports Equipment: increasingly sustainable model - Sports Instruments and Fitness turnaround continued - Now major focus on improving Ball Sports and realizing further portfolio synergies Our consumer marketing and product innovation pipeline increasingly focused on surrounding the consumer with head-to-toe solutions Continuous improvement in Go to Market: distribution quantity and quality, good progress on B2C All operations improving their KPIs 13
Prioritized, sequenced program Build critical capabilities, allocate resources and reignite growth Repeatable business model ~2013- Clarify future direction & deliver the year ~2010 Clarify priorities, set direction Continue to drive profit recovery, deliver the year Continue the work on operational efficiency & margins improvement ~2011...2012 Build capabilities: Softgoods Category based development Go to market Drive organic growth: softgoods, Russia, China, BtoC, etc. Operational excellence, WSE efficiency & profitability Grow the core Hardgoods Big countries Add more Softgoods Emerging markets Own retail Learn for future Next growth categories (accessories, action sports, Digital) 14
APPENDIX
Net sales and EBIT breakdown (MEUR) Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 2012 Q4/ 2012 Q3/ 2012 Q2/ 2012 Q1/ 2012 NET SALES 2013 Winter and Outdoor 1,289.5 433.7 420.6 168.7 266.5 1,221.2 402.8 411.0 150.9 256.5 Ball Sports 551.0 126.1 116.7 144.2 164.0 569.7 127.7 121.9 146.5 173.6 Fitness 296.0 97.6 71.6 64.3 62.5 273.1 88.0 69.0 56.4 59.7 Total 2,136.5 657.4 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 2012* Q4/ 2012* Q3/ 2012 Q2/ 2012 Q1/ 2012 EBIT 2013 Winter and Outdoor 127.0 52.5 87.4-27.1 14.2 113.8 41.7 86.8-25.4 10.7 Ball Sports 27.0 3.9-2.1 7.8 17.4 28.0 1.0-2.6 9.7 19.9 Fitness 24.4 14.3 6.2 4.3-0.4 17.0 7.9 4.2 1.0 3.9 Headquarters -23.5-6.0-9.0-3.7-4.8-20,1-3.6-7.1-4.5-4.9 Total 154.9 64.7 82.5-18.7 26.4 138.7 47.0 81.3-19.2 29.6 * Excluding non-recurring items 17
Business area net sales in Q4 and 2013 Q4/ Q4/ Ch Ch Ch Ch MEUR 2013 2012 % %* 2013 2012 % %* Winter Sports Equipment 208.6 203.2 3 8 416.7 425.0-2 3 Footwear 73.4 60.7 21 25 341.2 314.4 9 11 Apparel 86.9 77.0 13 21 285.4 248.6 15 21 Cycling 30.8 31.8-3 0 128.2 129.0-1 1 Sports Instruments 34.0 30.1 13 18 118.0 104.2 13 17 Individual Ball Sports 59.7 61.8-3 3 306.0 318.8-4 0 Team Sports 66.4 65.9 1 7 245.0 250.9-2 1 Fitness 97.6 88.0 11 16 296.0 273.1 8 13 Total 657.4 618.5 6 12 2,136.5 2,064.0 4 8 * In local currencies 18
Winter and Outdoor in 2013 (2012) MEUR 500 450 400 350 300 250 200 150 100 50 0 Net sales 416.5 375.0 Q4/10 Q4/11 402.8 Q4/12 433.7 Q4/13 MEUR 100 80 60 40 20 0-20 -40 EBIT excluding non-recurring items 61.2 45.0 Q4/10 Q4/11 41.7 Q4/12 52.5 Q4/13 Net sales +10+% Apparel +21%. Both Salomon and Arc teryx grew Sports Instruments +17% driven by the Suunto Ambit product family and market expansion Footwear +11%. All product segment and regions grew, strong growth in US Winter Sports Equipment +3%. Strong growth in alpine boots and cross country Cycling +1%, softgoods +14% EBIT was EUR 127.0 million (113.8, excl. NRI) Increased sales volumes Increased operating expenses due to sales and distribution costs 19
Ball Sports 2013 (2012) MEUR 180 160 140 120 107.3 Net sales 109.0 127.7 126.1 MEUR 25 20 15 EBIT exluding non-recurring items 100 80 60 40 20 0 Q4/10 Q4/11 Q4/12 Q4/13 10 5 0-5 -2.7 Q4/10-0.7 Q4/11 1.0 Q4/12 3.9 Q4/13 Net sales remained at previous year s level Americas and EMEA flat, 6% growth in APAC Individual Ball Sports 0%. Tennis rackets flat, growth in tennis balls Team Sports +1%. Baseball trade conditions normalized EBIT was EUR 27.0 million (28.0 excl. NRI) 20
Fitness 2013 (2012) MEUR 120 100 80 60 59.6 Net sales 72.9 88.0 97.6 MEUR 16 14 12 10 8 6 EBIT excluding non-recurring items 4.3 4.5 7.9 14.3 40 20 4 2 0 0 Q4/10 Q4/11 Q4/12 Q4/13-2 -4-6 Q4/10 Q4/11 Q4/12 Q4/13 Net sales +13% EMEA +14%, the Americas +8%, APAC +39% EBIT was EUR 24.4 million (17.0 excl. NRI) Increased sales volumes and improved gross margins were partly offset by higher operating expenses due to sales and distribution costs 21
Foreign currency translation difference EUR million 2013 2012 Business Area Reported Reported Local Currency Translation Difference Winter Sports Equipment 416.7 425.0 404.9-20.1 Footwear 341.2 314.4 308.2-6.2 Apparel 285.4 248.5 235.3-13.2 Cycling 128.3 129.0 126.8-2.1 Sports Instruments 118.1 104.2 100.7-3.6 Winter & Outdoor 1,289.5 1,221.2 1,176.0-45.2 Individual Ball Sports 306.0 318.8 306.0-12.8 Team Sports 245.0 250.9 241.7-9.2 Ball Sports 551.0 569.7 547.7-22.0 Fitness 296.0 273.1 262.7-10.5 Total 2,136.5 2,064.0 1,986.3-77.7 22
Net sales by region (MEUR) MEUR 2013 Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 2012 Q4/ 2012 Q3/ 2012 Q2/ 2012 Q1/ 2012 EMEA 1,025.2 338.6 301.6 144.5 240.5 962.7 305.3 297.6 133.1 226.7 Americas 839.4 229.3 237.2 177.6 195.3 834.1 224.8 236.2 167.4 205.7 Asia Pacific 271.9 89.5 70.1 55.1 57.2 267.2 88.4 68.1 53.3 57.4 Total 2,136.5 657.4 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 23
Sales development by region in 2013 EMEA Americas Asia Pacific Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Winter and Outdoor 830.3 9 300.0 9 159.2 15 1,289.5 10 Ball Sports 116.8 0 356.8 0 77.4 6 551.0 1 Fitness 78.2 14 182.6 8 35.2 39 296.0 13 Total 1,025.2 8 839.4 5 271.9 15 2,136.5 8 Winter and Outdoor Ball Sports Fitness Total 12 % 23 % 1,289.5 65 % 21 % 14 % 12 % 13 % 551.0 26 % 296.0 2,136.5 62 % 65 % 48 % 39 % Americas EMEA Asia Pacific 24
Balance sheet MEUR Dec. 31, 2013 Dec. 31, 2012 Goodwill and other intangible non-current assets 486.2 500.5 Tangible non-current assets and other non-current assets 269.5 282.8 Inventories and work in progress 355.1 336.7 Receivables 649.1 607.8 Cash and cash equivalents 270.0 142.5 Shareholders equity 761.3 731.8 Interest bearing liabilities 701.7 576.8 - Long-term 517.9 378.2 - Current 183.8 198.6 Other liabilities 566.9 561.7 Total 2,029.9 1,870.3 25
Contact information Heikki Takala, President and CEO, tel. +358 9 7257 8210 Jussi Siitonen, CFO, tel. +358 9 7257 8212 Samppa Seppälä, Corporate Communications and IR, tel. +358 9 7257 8233 www.amersports.com 26
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.