Amer Sports, Inc. · NYSE:AS
Amer Sports — H1 2004 Earnings Presentation
12 slides from Amer Sports's earnings presentation, Aug 12, 2004
Slide 1: Interim Report January - June 2004
Interim Report January - June 2004 August 12, 2004 Highlights Demand for sports equipment has strengthened Sports equipment business’s net sales +4%, EBIT +10% – Strongest growth in Fitness Equipment – Sell-through of golf equipment slower than expected Effect of exiting tobacco *) – Net sales
Slide 2: January – June key indicators
January – June key indicators H1/04 H1/03 2003 Net sales (MEUR) 519.1 530.8 1,094.1 EBIT(MEUR) 52.5 35.2 117.7 EPS (EUR) 1.49 0.95 3.35 Financial Review Pekka Paalanne CFO 2
Slide 3: Profit and loss statement January – June, MEUR
Profit and loss statement January – June, MEUR H1/04 H1/03 Ch% 2003 Net sales 519.1 530.8 -2 1,094.1 EBIT 52.5 35.2 49 117.7 Net financials -0.9 -4.1 -8.2 EBT 51.6 31.1 66 109.5 Taxes -16.3 -8.8 -31.0 Net result 35.2 22.1 59 78.1 ROCE % *) 24.3 17.7 21.0 *) Rolling 12 months Breakdown of net sales J
Slide 4: Breakdown of EBIT January – June, MEUR
Geographic breakdown of net sales, MEUR Ch% in local H1/04 H1/03 Ch% currencies 2003 Americas 320.8 313.8 2 13 573.2 EMEA 144.9 170.6 -15 -15 417.8 Asia Pacific 53.4 46.4 15 18 103.1 Total 519.1 530.8 -2 4 1,094.1 Breakdown of EBIT January – June, MEUR H1/04 H1/03 Ch% 2003 Racquet Sports 14.7 10.8 3
Slide 5: Profit and loss statement April – June, MEUR
Profit and loss statement April – June, MEUR Q2/04 Q2/03 Ch% 2003 Net sales 225.7 249.6 -10 1,094.1 EBIT 5.8 14.6 -60 117.7 Net financials 0.7 -1.9 -8.2 EBT 6.5 12.7 -49 109.5 Taxes -1.9 -3.6 -31.0 Net result 4.6 9.0 78.1 Breakdown of net sales April – June, MEUR Ch% in local Q2/04 Q2/03 Ch% currenc
Slide 6: Breakdown of EBIT April – June, MEUR; Balance sheet
Breakdown of EBIT April – June, MEUR Q2/04 Q2/03 2003 Racquet Sports 7.5 6.9 20.6 Golf 4.8 5.1 -12.4 Team Sports 3.0 4.6 23.3 Winter Sports -9.8 -9.0 28.3 Fitness Equipment 2.6 2.9 26.8 Sports Instruments 1.7 1.9 7.7 HQ -4.0 -1.0 -6.6 Patent Settlement - - 20.5 5.8 11.4 108.2 Tobacco - 3.2 9.5 Total
Slide 7: Equity ratio and gearing, %
Equity ratio and gearing, % 60 50 40 Eq ratio 30 Gearing 20 10 0 II/03 III/03 IV/03 I/04 II/04 30 June 2004 30 June 2003 31 Dec 2003 EqRatio % 53.0 43.9 48.6 Gearing % 29 50 33 Underlying results Continuing business excluding tobacco and patent litigation H1/04 H1/03 Ch% 2003 Net sales (MEUR) 496.
Slide 8: Divisional highlights
Divisional highlights Roger Talermo President & CEO Racquet Sports Good performance continued – Tennis rackets +7%, tennis balls +8%, footwear -8% nCode rackets with nanotechnology introduced in May – Global shipments up and running during Q3 – Roger Federer No. 1 in Wimbledon with nCode 6.1 Tou
Slide 9: Golf; Team Sports
Golf Net sales in local currencies unchanged vs. 2003 New Wilson Staff line to be launched during H2 – Re-positioning the Wilson golf brand – www.wilsonstaff.com Main goal in 2004: profitability Ch% in local MEUR H1/04 H1/03 Ch% currencies Net sales 98.7 102.2 -3 0 EBIT 8.0 3.9 Team Sports G
Slide 10: Winter Sports; Fitness Equipment
Winter Sports Pre-orders +9% Production running smoothly – Deliveries in September-October Net sales expected to grow by c. 10% in 2004 (in local currencies) – Euro-denominated manufacturing costs reducing sales margins in North America Ch% in local MEUR H1/04 H1/03 Ch% currencies Net sales 36
Slide 11: Sports Instruments; Outlook
Sports Instruments Sales of wristop computers unchanged vs. 2003 Sales of diving instruments +15% Declining non-core sales New products – G3, t6 – Peripheral Observation Devices (PODs) with speed and distance information to be launched for t6 in H2 – Suunto X9: Ispo Outdoor Award 2004 Ch% in
Slide 12: Target: To be the no. 1 sports equipment company in the world
Target: To be the no. 1 sports equipment company in the world 12