Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (2010)
22 slides from Amer Sports's investor day presentation, 2010
Slide 1: Fitness: Back to profitability
Fitness Back to profitability Paul Byrne, President 1
Slide 2: 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 uncertain
Slide 3: Fitness
Fitness MEUR Sales EBIT-% EBIT-% • Until the industry-wide downturn, 300 13 % Precor consistently delivered EBIT of 250 11 % 200 greater than 10% 9% 150 7% 5% • Made cuts to adjust to new size and 100 3% now need volume gains to reach 50 1% profitability targets 0 -1 % -50 -3 % • Disproportionately
Slide 4: Precor competes in all segments of fitness equipment with varying degrees of penetration
Precor competes in all segments of fitness equipment with varying degrees of penetration Source: Based upon FISA and SMRG Industry Reports for 2009 with additional Precor estimates. 4
Slide 5: Commercial Market Status
Commercial Market Status A few industry drivers are improving… Club attendance is up Membership revenue is stable Ancillary spend per member is stable However… Financing is difficult to secure New facility openings are rare Therefore… Equipment purchases are delayed 5
Slide 6: Consumer Market Status
Consumer Market Status The historic industry drivers are still valid… Aging population needs fitness Obesity is on the rise worldwide However… Home equity lending has stopped Consumer confidence is low Therefore… Discretionary purchases are down Product mix is shifting to lower prices Specialty reta
Slide 7: Precor is gaining commercial share during the downturn
Precor is gaining commercial share during the downturn Commercial Market Share Source: FISA Industry Report for 2009, aggregate of self reported data for 15 top suppliers excluding TechnoGym. Data reflects equipment sales only and excludes other revenue sources such as service or licensing. 7
Slide 8: Share gains are coming from industry beating performance globally in both strength and cardio
Share gains are coming from industry beating performance globally in both strength and cardio Commercial Equipment Sales 2009 vs. 2008 Source: FISA Industry Report for 2009, aggregate of self reported data for 15 top suppliers excluding Technogym. Data reflects equipment sales only and excludes othe
Slide 9: Precor earns the highest industry ratings
Precor earns the highest industry ratings Brand Rating Precor Supplier Rating Precor Overall Quality #1 Sales Reps #1 Reliability #1 In-House Cust. Service #1 Consumer Excitement #1 Adding Value to #1 Business Ease of Use #1 After Sales Service #1 Biomechanics #2 Business Terms #1 Footprint #1 Insta
Slide 10: Precor is known as a top consumer equipment brand
Precor is known as a top consumer equipment brand #1 Treadmill Overall Jan 2010 Precor 9.31 10
Slide 11: Precor is appreciated by customer and employees
Precor is appreciated by customer and employees Partner of the Year Vendor of the Year 11
Slide 12: Group development priorities
Group development priorities • Clear portfolio roles and synergies, integrated company • Grow faster in softgoods • Win with consumers • Win in go-to-market • Operational excellence 12
Slide 13: Group development priorities in Fitness: Back to profitability
Group development priorities in Fitness: Back to profitability • Win with consumers • Expand distribution model • Mid tier product offerings • Win in go-to-market • Grow share by pursuing under-penetrated categories and markets • Launch of Networked Fitness • Operational excellence • Continue to cap
Slide 14: Win with consumers
Win with consumers 14
Slide 15: Specialty Fitness will continue to contract as other channels expand their mid tier consumer offerings
Specialty Fitness will continue to contract as other channels expand their mid tier consumer offerings For Precor this means expanding our distribution model and making our product line more affordable Product Direct to Europe Re-design Consumer 15
Slide 16: Win in go-to-market
Win in go-to-market
Slide 17: Without new facility openings to lift the industry, companies will be forced to grow by capturing share
Without new facility openings to lift the industry, companies will be forced to grow by capturing share For Precor this means pursuing under-penetrated categories and markets Commercial EMEA & Strength APAC 17
Slide 18: Innovation in our industry will come in the form of User Experience and Networked Fitness
Innovation in our industry will come in the form of User Experience and Networked Fitness For Precor this means a new line of cardio equipment consoles and the development of in-house capability to program and network them 18
Slide 19: AMT Tutorial Video
AMT Tutorial Video 19
Slide 20: Operational excellence
Operational excellence
Slide 21: Improving margins and profitability with Precor's strong customer base
Improving margins and profitability with Precor’s strong customer base • Investment in Customer • Lean Manufacturing Management Systems – Continued capitalization on – SalesForce.com history of successful lean – 3-Tier call center manufacturing practices – New build-to-order process • Targeted Cost
Slide 22: Summary
Summary Precor has shifted to a leaner operation. Growth from key initiatives will complete our return to profitability targets • Next Generation Cardio Consoles • Networked Fitness • Commercial Strength • EMEA & APAC Market Penetration • Consumer Business Model • Operational excellence 22