Amer Sports, Inc. · NYSE:AS
Amer Sports — Q1-Q3 2005 Earnings Presentation
26 slides from Amer Sports's earnings presentation, Oct 26, 2005
Slide 1: Interim Report January - September 2005
Interim Report January - September 2005 October 26, 2005 Roger Talermo President and CEO
Slide 2: Highlights
Highlights Net sales in local currency terms +5% – Net sales +5% in Q3/2005 – Strongest growth in fitness equipment, +16% EBIT increased 4% to EUR 69.1 million Acquisition of Salomon concluded – The work to integrate the business operations begins
Slide 3: Key indicators
Key indicators Q1-Q3/05 Q1-Q3/04 Ch % 2004 Net sales (MEUR) 805.2 774.9 4 1,035.9 EBIT (MEUR) 69.1 66.5 4 100.5 EBT (MEUR) 65.5 64.0 2 97.0 EPS, cont. 0.63 0.64 0.96 operations (EUR)
Slide 4: Financial Review
Financial Review Pekka Paalanne CFO
Slide 5: Profit and loss statement, continuing operations
Profit and loss statement, continuing operations MEUR Q1-Q3/05 Q1-Q3/04 Ch % 2004 Net sales 805.2 774.9 4 1,035.9 EBIT 69.1 66.5 4 100.5 Net financials -3.6 -2.5 -3.5 EBT 65.5 64.0 2 97.0 Taxes -20.6 -18.6 -28.1 Net result 44.6 45.2 -1 68.6 ROCE % 17.2 15.4 17.7
Slide 6: Breakdown of net sales
Breakdown of net sales MEUR Ch % in local Q1-Q3/05 Q1-Q3/04 Ch % currencies 2004 Racquet Sports 179.6 171.0 5 6 210.3 Golf 118.5 126.6 -6 -5 147.7 Team Sports 152.6 143.0 7 10 185.0 Winter Sports 128.1 125.1 2 2 205.6 Fitness Equipment 171.4 151.5 13 16 210.1 Sports Instruments 55.0 57.7 -5 -5 77.2
Slide 7: Breakdown of EBIT
Breakdown of EBIT MEUR Q1-Q3/05 Q1-Q3/04 Ch % 2004 Racquet Sports 26.0 22.4 16 26.9 Golf 1.8 3.4 -47 0.5 Team Sports 21.4 18.9 13 24.6 Winter Sports 3.2 9.1 -65 29.6 Fitness Equipment 17.5 16.3 7 23.9 Sports Instruments 4.1 5.5 -26 8.0 HQ -4.9 -9.1 - -13.0 Total 69.1 66.5 4 100.5
Slide 8: Geographical breakdown of net sales
Geographical breakdown of net sales MEUR Ch % in local Q1-Q3/05 Q1-Q3/04 Ch % 2004 currencies Americas 471.7 460.7 2 5 597.1 EMEA 241.6 229.5 5 5 327.2 Asia Pacific 91.9 84.7 9 9 111.6 Total 805.2 774.9 4 5 1,035.9
Slide 9: Profit and loss statement, continuing operations
Profit and loss statement, continuing operations MEUR Q3/05 Q3/04 Ch % 2004 Net sales 294.2 278.4 6 1,035.9 EBIT 35.5 33.8 5 100.5 Net financials -0.8 -1.5 -3.5 EBT 34.7 32.3 7 97.0 Taxes -10.9 -7.8 -28.1 Net result 23.6 24.4 -3 68.6
Slide 10: Breakdown of net sales
Breakdown of net sales MEUR Ch % in local Q3/05 Q3/04 Ch % currencies 2004 Racquet Sports 56.6 54.8 3 2 210.3 Golf 26.5 27.9 -5 -6 147.7 Team Sports 43.0 38.8 11 10 185.0 Winter Sports 93.8 88.6 6 5 205.6 Fitness Equipment 57.9 50.1 16 16 210.1 Sports Instruments 16.4 18.2 -10 -11 77.2 Total 294.2 2
Slide 11: Breakdown of EBIT
Breakdown of EBIT MEUR Q3/05 Q3/04 Ch % 2004 Racquet Sports 7.3 7.7 -5 26.9 Golf -3.5 -4.6 - 0.5 Team Sports 3.1 3.6 -14 24.6 Winter Sports 23.7 24.0 -1 29.6 Fitness Equipment 7.1 4.2 69 23.9 Sports Instruments 0.9 2.0 -55 8.0 HQ -3.1 -3.1 - -13.0 Total 35.5 33.8 5 100.5
Slide 12: Balance sheet
Balance sheet MEUR 30 Sept 2005 30 Sept 2004 31 Dec 2004 Goodwill 307.6 301.1 284.2 Other non-current assets 115.8 136.7 114.9 Inventories 167.0 150.8 154.4 Receivables 280.2 269.3 260.0 Marketable securities 216.3 - - Cash 62.6 14.6 17.0 1,149.5 872.5 830.5 Equity 494.2 453.3 461.3 Int. bearing deb
Slide 13: 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 Q3/05 30 Sept 2005 30 Sept 2004 31 Dec 2004 Equity ratio, % 43.0 52.0 55.5 Gearing, % 29 34 29
Slide 14: Divisional highlights
Divisional highlights Roger Talermo President & CEO
Slide 15: Global brands
AMER SPORTS Global brands [i] Wilson. SUUNTO PRECOR? A ATOMIC SALOMON €& ¢ MAVIC)
Slide 16: Racquet Sports
Racquet Sports The trend in Racquet Sports remained favorable – Sales growth continued and EBIT grew Wilson launched a line of high-performance tennis rackets for women Wilson is an official Sponsor of the Australian Open Badminton equipment sales grew 41% Ch % in local MEUR Q1-Q3/05 Q1-Q3/04 Ch % c
Slide 17: Golf
Golf Global golf market was flat to compared with last year – Global golf equipment market remains highly competitive Net sales and EBIT did not meet expectations Decisions to boost the Golf Division’s operational efficiency and reduce costs will be made during Q4/2005 Ch % in local MEUR Q1-Q3/05 Q1
Slide 18: Team Sports
Team Sports Growth in Team Sports was strong Sales increased 52% in Asia Pacific Sales of baseball equipment +18% EBIT grew 18% in local currency terms Ch % in local MEUR Q1-Q3/05 Q1-Q3/04 Ch % currencies 2004 Net sales 152.6 143.0 7 10 185.0 EBIT 21.4 18.9 13 18 24.6
Slide 19: Winter Sports
Winter Sports September was a record month for Atomic Sales in Americas -21% in Q1-Q3 Ski boots up 42% IZOR ski line well received in the markets In-house orders for the remainder of the year at last year’s level Atomic has strong position in ski racing in the 2005/2006 Olympic season Ch % in local
Slide 20: Fitness Equipment
Fitness Equipment The fastest sales growth in the Fitness Equipment – Sales of all product categories grew – Sales in all market areas grew Profitability is improving Expansion of Precor's product range into strength training and entertainment systems and services has bolstered Precor's position as
Slide 21: Sports Instruments
Sports Instruments Sports instrument sales down 5% – Sales of diving instruments, diving and watersports suits all similar to last year’s levels – Sales of wristop computers down 4% – Training category shows potential Suunto G6, the new golf instrument, measures the swing, improves swing consistency
Slide 22: Acquisition of Salomon
AMER SPORTS Acquisition of Salomon
Slide 23: Acquisition of Salomon concluded
Acquisition of Salomon concluded Amer Sports is a leading global sports equipment company – Annual sales of about EUR 1.7 billion and 7,500 employees Transaction value (debt and cash free) amounts to approx. EUR 485 million based on year-end 2004 net assets – Includes 144 million in goodwill Transac
Slide 24: Acquisition of Salomon concluded
Acquisition of Salomon concluded The estimate of synergies made has been reinforced Amer Sports and Salomon will continue to serve their customers around the world with their own separate sales organizations Ongoing collaboration agreements with adidas-Salomon AG – lasting up to three years – to ass
Slide 25: Outlook for 2005
Outlook for 2005 Comparable net sales, exclusive of Salomon, +5% in local currency terms Salomon transaction will substantially increase Amer Sports’ net sales in the last quarter of 2005 The acquisition has no significant impact on earnings per share in the current fiscal year Earnings per share ex
Slide 26: The No. 1 sports equipment company in the world
The No. 1 sports equipment company in the world