Amer Sports, Inc. · NYSE:AS

Amer Sports — H1 2005 Earnings Presentation

26 slides from Amer Sports's earnings presentation, Aug 4, 2005

  1. Slide 1: Interim Report January - June 2005

    Interim Report January - June 2005 August 4, 2005 Roger Talermo President and CEO

  2. Slide 2: Highlights

    Highlights ƒ Demand for sports equipment has been on a good level ƒ Net sales in local currency terms +6% in H1/2005 – Net sales (local currencies) +6% in Q2/2005 – Strongest growth in Asia Pacific, +16% ƒ EBIT increased 3% to EUR 33.6 million ƒ Sale of real estate ƒ Juha Pinomaa, M.Sc. Eng., MBA, a

  3. Slide 3: Key indicators

    Key indicators H1/05 H1/04 Ch % 2004 Net sales (MEUR) 511.0 496.5 3 1,035.9 EBIT (MEUR) 33.6 32.7 3 100.5 EBT (MEUR) 30.8 31.7 -3 97.0 EPS, cont. 0.29 0.29 0.96 operations (EUR)

  4. Slide 4: Financial Review

    Financial Review Pekka Paalanne CFO

  5. Slide 5: Quarterly net sales development

    Quarterly net sales development 300 250 200 Sports Instruments Fitness Winter 150 Team Racquet 100 Golf 50 0 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05

  6. Slide 6: Quarterly net sales development

    Quarterly net sales development 100 90 80 70 Golf 60 Racquet Team 50 Winter 40 Fitness 30 Sports Instruments 20 10 0 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05

  7. Slide 7: Profit and loss statement, continuing operations

    Profit and loss statement, continuing operations MEUR H1/05 H1/04 Ch % 2004 Net sales 511.0 496.5 3 1,035.9 EBIT 33.6 32.7 3 100.5 Net Financials -2.8 -1.0 -3.5 EBT 30.8 31.7 -3 97.0 Taxes -9.7 -10.8 -28.1 Net result 21.0 20.8 1 68.6 ROCE % 17.3 20.7 17.7

  8. Slide 8: Breakdown of net sales

    Breakdown of net sales MEUR Ch % in local H1/05 H1/04 Ch % currencies 2004 Racquet Sports 123.0 116.2 6 8 210.3 Golf 92.0 98.7 -7 -4 147.7 Team Sports 109.6 104.2 5 10 185.0 Winter Sports 34.3 36.5 -6 -5 205.6 Fitness Equipment 113.5 101.4 12 16 210.1 Sports Instruments 38.6 39.5 -2 -2 77.2 Total 51

  9. Slide 9: Breakdown of EBIT

    Breakdown of EBIT MEUR H1/05 H1/04 Ch % 2004 Racquet Sports 18.7 14.7 27 26.9 Golf 5.3 8.0 -34 0.5 Team Sports 18.3 15.3 20 24.6 Winter Sports -20.5 -14.9 - 29.6 Fitness Equipment 10.4 12.1 -14 23.9 Sports Instruments 3.2 3.5 -9 8.0 HQ -1.8 -6.0 - -13.0 Total 33.6 32.7 3 100.5

  10. Slide 10: Geographic breakdown of net sales

    Geographic breakdown of net sales MEUR Ch % in local H1/05 H1/04 Ch % currencies 2004 Americas 323.7 320.8 1 5 597.1 EMEA 125.5 122.3 3 3 327.2 Asia Pacific 61.8 53.4 16 16 111.6 Total 511.0 496.5 3 6 1,035.9

  11. Slide 11: Profit and loss statement, continuing operations

    Profit and loss statement, continuing operations MEUR Q2/05 Q2/04 Ch % 2004 Net sales 233.2 224.9 4 1,035.9 EBIT 12.1 5.3 128 100.5 Net Financials -2.1 0.7 -3.5 EBT 10.0 6.0 67 97.0 Taxes -3.1 -1.9 -28.1 Net result 6.8 4.1 66 68.6

  12. Slide 12: Breakdown of net sales

    Breakdown of net sales MEUR Ch % in local Q2/05 Q2/04 Ch % currencies 2004 Racquet Sports 62.0 57.5 8 10 210.3 Golf 44.6 50.1 -11 -9 147.7 Team Sports 45.7 42.7 7 11 185.0 Winter Sports 7.8 7.6 3 4 205.6 Fitness Equipment 54.5 46.3 18 21 210.1 Sports Instruments 18.6 20.7 -10 -10 77.2 Total 233.2 22

  13. Slide 13: Breakdown of EBIT

    Breakdown of EBIT MEUR Q2/05 Q2/04 Ch % 2004 Racquet Sports 9.7 7.5 29 26.9 Golf 0.8 4.8 -83 0.5 Team Sports 5.7 3.0 90 24.6 Winter Sports -12.1 -9.8 - 29.6 Fitness Equipment 4.6 2.6 77 23.9 Sports Instruments 1.5 1.7 -12 8.0 HQ 1.9 -4.5 - -13.0 Total 12.1 5.3 128 100.5

  14. Slide 14: Balance sheet

    Balance sheet MEUR 30 June 2005 30 June 2004 31 Dec 2004 Goodwill 306.7 305.2 284.2 Other non-current assets 113.8 136.8 114.9 Inventories 180.9 159.9 154.4 Receivables 204.2 199.0 260.0 Cash 24.5 16.4 17.0 830.1 817.3 830.5 Equity 467.9 431.7 461.3 Int. bearing debt - Long term 31.1 33.9 27.1 - Sho

  15. Slide 15: Equity ratio and gearing, %

    Equity ratio and gearing, % 60 50 40 Eq ratio 30 Gearing 20 10 0 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 30 June 2005 30 June 2004 31 Dec 2004 Equity ratio, % 56.4 52.8 55.5 Gearing, % 28 29 29

  16. Slide 16: Divisional highlights

    Divisional highlights Roger Talermo President & CEO

  17. Slide 17: Racquet Sports

    Racquet Sports ƒ Tennis rackets and balls market grew 6% in the US (H1/05) ƒ Racquet Sports continued its strong sales performance – Americas +8%, EMEA +6%, Asia Pacific +12% – Tennis rackets +13%, tennis balls +2% ƒ Wilson nCode racket line: a success in all markets ƒ Badminton equipment sales grew

  18. Slide 18: Golf

    Golf ƒ Global market has performed similarly to last year – Global golf equipment market remains highly competitive ƒ Net sales down by 4% in local currency terms – Americas -7%, EMEA -5%, Asia Pacific +6% – Sales of golf clubs -4% ƒ Main goal is to improve profitability by boosting operational effi

  19. Slide 19: Team Sports

    Team Sports ƒ Strong performance continues, Asia Pacific +71% – Americas +8%, EMEA +11%, – Sales outside the US +27% ƒ Fastest growing product categories baseballs and softball bats, and baseball training equipment – Total baseball business represents about 45% of Team Sports’ net sales ƒ Renewed NF

  20. Slide 20: Winter Sports

    Winter Sports ƒ Unfavorable market conditions in the US ƒ Sales down 5% in local currency terms – Sales in Americas -25%, EMEA -2% ƒ Strengthened distribution network in Italy and Russia ƒ Focusing on producing next season’s products – Production running smoothly: deliveries in H2 ƒ Pre-orders indic

  21. Slide 21: Fitness Equipment

    Fitness Equipment ƒ Precor outperforms the market ƒ Sales up 16% in local currency terms – In Americas, sales for fitness equipment grew 15% – Sales outside the Americas +21%: EMEA +22%, Asia Pacific +18% – Increasing global distribution by leveraging the Amer Sports’ network ƒ Sales of acquired com

  22. Slide 22: Sports Instruments

    Sports Instruments ƒ Sports instruments sales down 2% – Americas -10%, EMEA +2%, Asia Pacific +14% – Sales of diving instruments, wristop computers, diving and water sports’ suits all similar to last year’s levels ƒ Several product upgrades and features available in fall 2005 ƒ Juha Pinomaa, M.Sc. E

  23. Slide 23: Outlook for 2005 (Amer Sports' current operations)

    Outlook for 2005 (Amer Sports’ current operations) ƒ Demand for sports equipment is expected to remain at good levels – Growth stabilizing in the US – Slow recovery continues in Europe and Japan ƒ Comparable net sales in local currency terms +5% ƒ Earnings per share expected to be in the range of EU

  24. Slide 24: Acquisition of Salomon takes us to the next level of our strategy

    Acquisition of Salomon takes us to the next level of our strategy ƒ The combination of Amer Sports and Salomon will create the leader in global sports equipment with ~1.7 Beur sales ƒ And the leading company in winter sports with ~600 Meur sales ƒ Will give us a more balanced geographic distribution

  25. Slide 25: Outlook including Salomon

    Outlook including Salomon ƒ Target for completion: by the end of September – Salomon would then be consolidated in P&L for Q4/2005 – Q4/2004 sales MEUR 253 ƒ EPS impact not significant in 2005

  26. Slide 26: The no. 1 sports equipment company in the world

    The no. 1 sports equipment company in the world

Amer Sports — H1 2005 Earnings Presentation on 6ix