Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (2014)
14 slides from Amer Sports's investor day presentation, 2014
Slide 1: Delivering mid-term targets and accelerating beyond
Delivering mid-term targets and accelerating beyond Amer Sports CMD 2014 // Jussi Siitonen, CFO Contents • Current performance drivers and P&L logic • Delivering mid-term targets • Restructuring as an enabler for future acceleration • Summary 2 Amer Sports CMD 2014
Slide 2: Current performance drivers and P&L logic
Current performance drivers and P&L logic Logic behind full year growth guidance Full year growth guidance (≥ 5%) consists of: • H1 (40% of FY sales) growth 5% • H2 (60% of FY sales) – Winter Sports Equipment and softgoods pre-orders, together accounting for ~50% of H2 sales, support the outlook – S
Slide 3: Historical OPEX pattern supports full year EBIT outlook
Historical OPEX pattern supports full year EBIT outlook Historical OPEX, % of sales 50 • Annual OPEX is relatively evenly split Full year OPEX, % of sales across the quarters whilst sales are H2 biased (60% in H2) 25 • Sell-in OPEX for pre-orders typically 6-12 months in advance vs. related % of top
Slide 4: 2014 specific topics: Strengthening USD benefits us short-term
2014 specific topics 1) Impact of currencies 2) Russia and Latin America 7 Amer Sports CMD 2014 Strengthening USD benefits us short-term Net Seller Net Buyer 856 • Strengthening USD has a positive short-term USD 639 EBIT impact due to translation difference (60% of Group EBIT comes from USD based GB
Slide 5: Current visibility on Russia and Latin America included in guidance
Current visibility on Russia and Latin America included in the full year guidance • Russia and Latin America have a Facts: Russia significant adverse impact on Group • Approx. 3% of Group sales topline and Gross Margin • Max 5% of any BA’s sales • We seek to protect profitability and cash • 75% of R
Slide 6: Current performance and bridge to 2016
Current performance and bridge to 2016 2013 vs. 2009 2013 2016 target Net sales +7.5% CAGR 2,136 MEUR ~2,500 MEUR Gross margin Up 4.0pp 43.6% 45% OPEX-% Down 1.0pp 37.0% 35% EBIT% Up 4.4pp 7.3% 10% 11 Amer Sports CMD 2014 Plans in place for portfolio performance improvement • Roughly 50% of the Grou
Slide 7: Softgoods and Ball Sports are primary drivers for profitability improvement
Softgoods and Ball Sports are primary drivers for profitability improvement 1.The biggest part of our profitability improvement comes from growth, Apparel and Footwear being the biggest ≈10% growth drivers 2.Other significant contributor is Gross Gross Profit Margin improvement, driven especially by
Slide 8: Funding is not a barrier for growth
Funding is not a barrier for growth EUR • Net debt 455 MEUR 250m (June 30, 2014) • Good liquidity: cash 87 MEUR, 200m unused committed facilities 240 MEUR (June 30, 2014) 150m • Scheduled long-term debt 100m payments 6 MEUR in 2014 and 156 MEUR in 2015 50m • Use of cash: ensure organic growth accele
Slide 9: Reminder: 2012 restructuring; context for the new restructuring
Reminder: 2012 restructuring Targets Results by June 2014 Annual cost saving of 20 MEUR once fully • WSE 2014 topline down, EBIT executed by the end of 2014, focus on: significantly up vs. 2012 baseline. • Further reducing weather dependency in • 200 headcount resource fluidity: Winter Sports Equipm
Slide 10: Securing mid-term targets and accelerating profitable growth after 2016
Securing mid-term targets and accelerating profitable growth after the 2016 milestone I. Ball Sports: • First fix structural profitability (Gross Margins), then reignite profitable growth II. Resource fluidity (OPEX): • Accelerate the core: Softgoods, new pockets of growth in Equipment, core markets
Slide 11: Restructuring will further improve our asset efficiency
Restructuring will further improve our Asset efficiency Capital turnover 1,175 4.0X Net Tax Assets 102 3.0X Working Capital 417 720 Asset efficiency through W/C improvement and Fixed Assets 169 2.0X faster growth in 1.9X high asset turnover 1.0X Intangible Assets 487 455 categories Share of 0.0X cap
Slide 12: Logic in the prioritized acceleration beyond 2016
Logic in the prioritized acceleration beyond 2016 Objectives Directional Potential building blocks • Faster growth • Softgoods 50% • EBIT margin of sales 10+% • Higher • Selected profitability Equipment • Asset turnover acceleration >2X • Improved asset • B2C 10+% of efficiency sales • ROCE >20% • D
Slide 13: Deliver mid-term targets and accelerate
Deliver mid-term targets and accelerate • Full year guidance remains unchanged • Financial targets are intact – Glidepath and building blocks in place to deliver mid-term 10% EBIT • Restructuring will free up funds and resources for acceleration • Acceleration is designed to transform Amer Sports to
Slide 14: Disclaimer
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