Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (September 2011)
13 slides from Amer Sports's investor day presentation, Sep 1, 2011
Slide 1: Financial Strength to Enable Future Growth
FINANCIAL STRENGTH TO ENABLE FUTURE GROWTH September 1, 2011 // Jussi Siitonen, CFO Contents 1 Towards 1. T d the th long-term l t financial fi i l ttargets t 2. Seasonality as a driver for working capital 3. Foreign currency impacts 4 Contingency 4. C ti planning: l i “Wh “Whatt if?” 5. Summary and
Slide 2: Towards the long-term financial targets set in 2010
Towards the long-term financial targets set in 2010 • Execute the glidepath guided by the long-term financial targets – Continue investments in growth categories and distribution to secure profitable growth – long-term long term – Drive scale and synergies in operations not directly related to growt
Slide 3: Long-term financial targets: Growth and Profitability
Long-term financial targets: Growth Sustainable growth with strong focus on softgoods 45 45 Net Sales year-on-year growth (%) • Softgoods S f d up from f 20% to 25% off 40 FX Neutral Group Sales. Result of executing the strategic objectives set for 35 32 Apparel and Footwear 31 14 12 • Pre-orders ar
Slide 4: Selective OPEX investments according to plan
Long-term financial targets: Profitability Selective OPEX investments according to plan 40 % 35 % R&D • We continue to make selective OPEX investments - Increased I d distribution di t ib ti and d new channels h l (S&D) 30 % - Future product creation (R&D) and brand/category expansions 25 % S&D • To
Slide 5: No change in long-term cash flow target
Long-term financial targets: Cash Flow No change in long-term Recap from CMD 10 Sep, 2010 cash flow target • Cash flow target unchanged: free cash flow equal to net profit • Aligned with the 5% growth and 10% profitability targets • Growing faster than the long-term target with lower than the target
Slide 6: Solid cash flow is actively managed
Long-term financial targets: Cash Flow Solid cash flow is actively managed EUR million H1 Year • H1 ffree cash h flflow reflects fl t 2011 2010 2010 production shift and increased EBIT 14.8 -7.4 96.8 Non Cash Adjustments 18.5 18.4 28.3 pre-orders Change in W/C 22.5 86.4 -18.8 Net Financing Exp -12.1
Slide 7: Future scheduled repayments well covered
Long-term financial targets: Balance Sheet Future scheduled repayments well covered • Strong liquidity: cash and 175m unused facilities EUR 270m 150m (June 30, 2011) 125m • Scheduled payments in 2012 EUR 60m, in 2013 100m EUR 35m 75m • March 2012 first reset option 50m for Hybrid (12% coupon) 25m •
Slide 8: Seasonality
SEASONALITY Seasonality in pre-order based businesses • We have significant seasonality especially in pre-order based businesses - Winter te Sports Spo ts Equipment, qu p e t, Apparel ppa e and a d Footwear oot ea • We look at H1 and H2 results rather than individual quarters - Quarterly cut-offs ar
Slide 9: We have two seasons in Footwear and Apparel
We have two seasons in Footwear and Apparel to partly balance the Winter Sports driven H2 dependency Footwear Apparel • Annual sales 50% • Annual sales 30% Spring/Summer (H1) and Spring/Summer (H1) and 50% Fall/Winter (H2) 70% Fall/Winter (H2) • Pre-orders approx. 85% of • Pre-orders approx. 95% of
Slide 10: Foreign Currency Impacts
FOREIGN CURRENCY IMPACTS Weakening USD benefits us long-term, however it has a negative short-term impact Net Seller Net Buyer • Weakening USD has a negative 281 short-term impact due to translation USD 250 difference -54 CHF -57 • As a net buyer of the USD, we benefit from weakening of the USD -42
Slide 11: Contingency Planning: What If?
CONTINGENCY PLANNING: ”WHAT IF?” We have contingency plans in place in case of economic downturn Focus on p proven topline p drivers • Distribution • Footwear and Apparel new product development and pipeline fill Stop / limit discretionary spend • Focus on commercial spend to build/retain distributi
Slide 12: Summary & Conclusions
SUMMARY & CONCLUSIONS Financial strength to enable future growth • Focus on continuous,, year-on-year y y improvement p towards the long-term g financial targets • Continue OPEX investments in prioritized, sequenced programs • Actively manage cash flow and balance sheet to secure organic growth and
Slide 13: www.amersports.com
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