Amer Sports, Inc. · NYSE:AS
Amer Sports — Q3 2006 Earnings Presentation
24 slides from Amer Sports's earnings presentation, Oct 25, 2006
Slide 1: Interim Report 1–9/2006
Interim Report 1–9/2006 October 25, 2006, Helsinki Roger Talermo President & CEO
Slide 2: Profit and loss statement
Profit and loss statement MEUR Pro Pro Pro forma forma forma Q3/06 Q3/05 Ch % 1-9/06 1-9/05 Ch % 2005 Net sales 471.9 483.6 -2 1,211.1 1,173.5 3 1,732.0 EBIT 57.9 63.5 -9 50.5 49.3 2 117.1 Net financials -7.0 -6.9 -1 -18.3 -17.4 -5 -24.0 EBT 50.9 56.6 -10 32.2 31.9 1 93.1 Taxes -14.3 -19.0 -8.7 -10.
Slide 3: United States, Retail Sales, Current Prices, USD
United States, Retail Sales, Current Prices, USD 15,0 12,5 10,0 7,5 Percent 5,0 2,5 0,0 -2,5 96 97 98 99 00 01 02 03 04 05 06 Total excluding food services [c.o.p 12 obs, ma 3] Sporting goods stores [c.o.p 12 obs, ma 3] Source: Reuters EcoWin
Slide 4: Highlights Q3/2006
Highlights Q3/2006 • Driven by strong sales of the Commercial Division, Precor’s good performance continued • Net sales of Salomon’s Winter Sports Equipment declined by 17% as portion of Winter Sports Equipment deliveries were delayed from the third quarter to the fourth quarter 2006 • Atomic’s sale
Slide 5: Net sales growth January - September
Net sales growth January - September % of total sales Pro forma 1-9/06 FY 2005 2006 +3% 31% 36% Salomon 2005 W ilson +2% 38% 33% +12% 16% 15% Precor -4% 10% 12% Atomic +6% 5% 4% Suunto +3% 100% 100% Total 0 200 400 600 800 1000 1200 1400 MEUR
Slide 6: Breakdown of net sales
Breakdown of net sales MEUR Q3/06 Q3/05 Ch % 1-9/06 1-9/05 Ch % 2005 Salomon 179.6 189.4*) -5 379.3 368.3*) 3 623.5*) Wilson 120.3 126.1 -5 458.1 450.7 2 570.4 Precor 60.4 57.9 4 192.6 171.4 12 252.1 Atomic 93.3 93.8 -1 122.6 128.1 -4 214.0 Suunto 18.3 16.4 12 58.5 55.0 6 72.0 Total 471.9 483.6*) -2
Slide 7: Breakdown of EBIT
Breakdown of EBIT MEUR Q3/06 Q3/05 Ch % 1-9/06 1-9/05 Ch % 2005 Salomon 23.6 28.0 -16 -16.7 -19.8 16 18.1 Wilson 7.9 6.9 14 49.4 49.2 0 52.1 Precor 6.0 7.1 -15 22.1 17.5 26 31.1 Atomic 23.4 23.7 -1 1.8 3.2 -44 22.2 Suunto 1.0 0.9 11 5.8 4.1 41 3.4 HQ -4.0 -3.1 - -11.9 -4.9 - -9.8 Total 57.9 63.5 -9
Slide 8: Equity ratio and gearing, %
Equity ratio and gearing, % 140 120 100 80 Eq ratio Gearing 60 40 20 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 30 Sep 2006 30 Sep 2005 31 Dec 2005 Equity ratio, % 31.3 43.0 31.8 Gearing, % 120 29 112
Slide 9: Market and business outlook
AMER SPORTS Market and business outlook
Slide 10: Salomon
Salomon • 2006 is a transitional year for Salomon – Turnaround program is proceeding according to plan • Winter Sports Equipment – Order book is good – Delayed deliveries in Q3, situation is expected to return to normal in Q4 – Initial ski tests have been positive • Apparel and Footwear – Initial or
Slide 11: Atomic
Atomic • In-house orders for remainder of 2006 are on last year’s level • Deliveries are running smoothly • Several new product launches have been scheduled for next season
Slide 12: Wilson
Wilson • Racquet Sports – Stable market conditions likely to remain for the rest of 2006 – Major product launch 2007 • Team Sports – Growth continuing in all categories except uniforms and training equipment • Golf – Competition remains fierce – US sales show positive signs
Slide 13: Precor
Precor • North American Commercial Division continues to drive growth • Success in serving major customers – Extensive cooperation agreement with Hilton Hotels Corporation – Honored as top vendor to AnyTime Fitness, one of North America’s fastest-growing club chains • Good penetration of Cardio Thea
Slide 14: Suunto
Suunto • New Suunto Training line was launched in September – Several new heart rate monitors with unique features also at lower price- points – Signs of initial sell through are encouraging
Slide 15: Full-year guidance
Full-year guidance • In 2006, Amer Sports net sales are expected to be approx. EUR 1.8 billion (pro forma 2005: EUR 1,732 million) • Earnings per share in 2006 is expected to come in at EUR 0.90–1.05 (previous estimate EUR 0.95–1.05) • The full-year tax rate is estimated to be 27% (previous estimate
Slide 16: amer.communications@amersports.com
amer.communications@amersports.com
Slide 17: Supplementary information
AMER SPORTS Supplementary information
Slide 18: Key figures
Key figures Pro forma Pro forma 1-9/2006 1-9/2005 Ch % 2005 Net sales (MEUR) 1,211,1 1,173.5 3 1,732.0 EBIT (MEUR) 50.5 49.3 2 117.1 % of net sales 4 4 7 EBT (MEUR) 32.2 31.9 1 93.1 EPS (EUR) 0.33 0.30 0.87 1-9/2006 1-9/2005 2005 ROCE, % *) 6.5 17.2 11.3 ROE, % 5.9 12.5 15.1 Net debt 617.5 142.6 601
Slide 19: Seasonality of business operations: quarterly net sales
Seasonality of business operations: quarterly net sales 600 500 400 Suunto Atomic 300 Precor Wilson Salomon 200 100 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Salomon increased seasonality and substantially changed Amer Sports business structure
Slide 20: Net sales development, last months
Net sales development, last 12 months 700 634,5 623,5 577,8 600 570,4 500 400 MEUR FY 2005 273,3 Last 12 months 300 252,1 208,5 214 200 100 75,5 72 0 Suunto Atomic Precor Wilson Salomon
Slide 21: Net sales growth January - September
Net sales growth January - September % of total sales Pro forma 1-9/06 FY 2005 2006 +6% 50% 45% Americas 2005 -1% 39% 44% EMEA +7% 11% 11% Asia Pacific +3% 100% 100% Total 0 500 1000 1500 MEUR
Slide 22: Cash flow statement
Cash flow statement MEUR 1-9/06 1-9/05 1-12/2005 Net cash from operating activities 21.4 32.3 96.4 Net cash from investing activities -56.7 -2.4 -471.6 Net cash from financing activities Dividends paid -35.9 -36.0 -36.0 Issue of shares 1.5 0.2 0.7 Change in net debt 48.5 267.0 441.3 Net increase/dec
Slide 23: Balance sheet
Balance sheet MEUR 30 Sep 2006 30 Sep 2005 31 Dec 2005 Goodwill and other intangible non-current assets 509.5 312.3 528.8 Other non-current assets 179.4 111.1 172.1 Inventories 392.0 167.0 301.6 Receivables 535.0 280.2 635.1 Marketable securities - 216.3 - Cash 26.5 62.6 48.7 Equity 514.5 494.2 536.
Slide 24: 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