Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (May 2009)
24 slides from Amer Sports's investor day presentation, May 28, 2009
Slide 1: CMD 2009 Financial update
CMD 2009 Financial update Pekka Paalanne, Executive Vice President and CFO May 28, 2009
Slide 2: Disclaimer
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 uncerta
Slide 3: Agenda
Agenda • Cash flow & balance sheet update – Gearing – P100 program – Business and cash flow seasonality – Financial guidelines – Balance sheet targets
Slide 4: Gearing, %
Gearing, % Target range 2009 Incl. Hybrid Target bond
Slide 5: P100 program
P100 program • Program launched in October 2008 • Target is to release EUR 100 million from working capital by the end of 2009 • At the same time, review practices to build ground for further improvement in 2010 • AR and inventory • Whole organization involved • Detailed programs and regular follow
Slide 6: Amer Sports supply chain performance
Amer Sports supply chain performance DSI = days sales of inventory 180 160 140 120 100 80 60 40 20 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 7: Inventory reduction plan
Inventory reduction plan 400 350 EUR -70 million 300 MEUR 250 200 2009 TARGET2009 150 100 TARGET 50 0 2008 Q1/ Q1/ Q2/ Q3/ 2008 08 09 08 08
Slide 8: Q1 inventory reduction results
Q1 inventory reduction results • Trend has changed – Inventory development from YE to Q1 has been the following • 2006 flat • 2007 EUR +25 million • 2008 flat • 2009 EUR -25 million in local currencies
Slide 9: Amer Sports accounts receivables performance
Amer Sports accounts receivables performance DSO = days sales outstanding 100 90 80 70 60 50 40 30 20 10 0 1997 1998 1999 2000 2001 2002 2003 2004 2005* 2006 2007 2008 2009 2010 2011 2012 *) Pro forma
Slide 10: Accounts receivables actions
Accounts receivables actions • Specific actions in each business area • Short term focus on receivables collection – Special attention on overdues • Long-term focus on – Harmonization and reduction of available payment terms – Strategic use of payment terms to drive both sales and DSO reduction
Slide 11: Aging analysis of accounts receivables 2008
Aging analysis of accounts receivables 2008 400 350 300 MEUR 250 200 150 Special focus 100 50 0 Undue 1-30 days 31-60 days >60
Slide 12: Accounts receivables reduction plan
Accounts receivables reduction plan 600 500 EUR -30 million MEUR 400 300 TARGET 2009 200 100 0 Q4/ Q1/ Q1/ Q2/ Q3/ Q4/ 08 08 09 08 08 08
Slide 13: Impact of P100 program
Impact of P100 program • Inventories down by EUR 70 million • Accounts receivables down by EUR 30 million • BUT : interest free payables will also decline ¾ Working capital reduction target more than EUR 50 million
Slide 14: Amer Sports seasonality
Amer Sports seasonality
Slide 15: Quarterly sales generation
Quarterly sales generation 700 600 500 MEUR 400 2006 2007 300 2008 2009 200 100 0 Q1 Q2 Q3 Q4
Slide 16: Amer Sports quarterly net sales per segment
Amer Sports quarterly net sales per segment 350 300 250 MEUR 200 150 100 50 0 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Winter and Outdoor Ball Sports Fitness
Slide 17: Quarterly EBIT generation
Quarterly EBIT generation 80 70 60 50 MEUR 40 2006 2007 30 2008 20 2009 10 0 -10 Q1 Q2 Q3 Q4 -20
Slide 18: Amer Sports quarterly EBIT per segment
Amer Sports quarterly EBIT per segment 60 50 40 30 MEUR 20 10 0 -10 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 -20 -30 -40 Winter and Outdoor Ball Sports Fitness
Slide 19: Working capital seasonality
Working capital seasonality 700 600 500 MEUR 400 Accounts receivables 07 300 Inventories 07 200 Accounts receivables 08 Inventories 08 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 20: Capital expenditure and depreciation
MEUR 0 10 20 30 40 50 60 Capital expenditure 2006 Depreciation Capital expenditure 2007 Depreciation Capital expenditure 2008 Depreciation Capital expenditure Capital expenditure and depreciation 2009* * Forecast Depreciation CAPEX Depreciation
Slide 21: Group tax rate 2001–2009, %
Group tax rate 2001–2009, % 34 32 30 % 28 26 24 22 20 2001 2002 2003 2004 2005* 2006 2007 2008 2009** *) Pro forma **) Forecast
Slide 22: Q1/2009: Debt breakdown
Q1/2009: Debt breakdown Debt EUR 582 million Commer. Synd. credit Pension Type of debt Bond Other Bank loan Bond Other papers facility*) loan EUR 70 75 7 75 245 75 31 4 Share of debt, % 12 13 1 13 42 13 5 1 Maturity < 6 months 2009 2009 2011, 2012 2011, 2012 2011 < 1 year > *) Unused portion at the
Slide 23: Summary
Summary • Strengthening the Balance sheet is the key priority in 2009 – Hybrid bond in March – P100 program launched in October 2008 • Q1 on track to reach target
Slide 24: Amer Sports
AMER SPORTS AMER SPORTS PERFORMANCE PRODUCTS FOR ALIWE SPORTS SALOMON ©&> Wikon SUUNTO A ATOMIC MPRECOR ARCTERYK Cmavic)D