Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (August 2013)
35 slides from Amer Sports's investor day presentation, Aug 29, 2013
Slide 1: Amer Sports CMD 2013: Commercial expansion
AMER SPORTS CMD 2013 Commercial expansion Helsinki, August 29, 2013
Slide 2: Amer Sports Strategic Update
AMER SPORTS STRATEGIC UPDATE August 29, 2013 // Heikki Takala, CEO
Slide 3: Contents
Contents 1. Amer Sports today 2. Recap of Amer Sports turnaround strategy 3. Performance update 4. Future Group development 5. Summary 3 Amer Sports CMD 2013
Slide 4: Amer Sports Today
AMER SPORTS TODAY
Slide 5: Amer Sports in brief
Amer Sports in brief Net sales by business (2012) • Revenue EUR >2 billion • One of the leading sporting goods 13% Winter Sports Equipment and outdoor companies in the world 21% Footwear Apparel 12% • Strong brand portfolio Cycling 15% Sports Instruments • 1/3 softgoods, 2/3 sports equipment 16% Ind
Slide 6: Recap of Amer Sports Turnaround Strategy
RECAP OF AMER SPORTS TURNAROUND STRATEGY
Slide 7: Towards big brands, big categories, big countries
Towards big brands, big categories, big countries Amer Sports’ five strategic priorities 1. Clear portfolio roles and synergies, integrated company 2. Faster growth in softgoods 3. Winning with consumers 4. Winning in Go to Market 5. Operational excellence 7 Amer Sports CMD 2013
Slide 8: Portfolio roles
Portfolio roles Business area Objective Footwear Further accelerate growth Apparel Drive significant revenue growth To sustainable profitability, irrespective of Winter Sports Equipment weather conditions Ball Sports Focus on profitable growth Fitness Back to target profitability First back to targe
Slide 9: Our approach on scale and synergies
Our approach on scale and synergies Synergistic businesses Portfolio Apparel, Footwear, Ball Sports, WSE businesses Category based operation Sales & channels / regions & countries Scale, synergies and integration Focus on improving profitability; synergies where it makes sense 9 Amer Sports CMD 2013
Slide 10: Long-term financial targets
Long-term financial targets Year end net debt / Growth Delivering organic, currency- EBITDA ratio of 3 or less. neutral annual growth of 5%. Capital Dividend and Profit- share price structure performance ability Annual free cash flow EBIT of at least 10% of equal to net profit. Cash net sales. flow
Slide 11: Prioritized, sequenced program
Prioritized, sequenced program Repeatable business model Build critical capabilities, allocate resources and reignite growth 2013 – Clarify future direction & • Grow the core ~2011...2012 • Hardgoods deliver the year • Build capabilities: • Big countries ~2010 • Softgoods • Add more • Category-based
Slide 12: Performance Update
PERFORMANCE UPDATE
Slide 13: Where we are today
Where we are today MEUR % 2500 10 2000 8 + 1500 6 H2 1000 4 H1 EBIT-% 500 2 0 0 2009 2010 2011 2012 2013 guidance 13 Amer Sports CMD 2013
Slide 14: Short-term performance
Short-term performance H1/2013 compared to H1/2012 • Net sales EUR 870.2 million (843.6), +5 in local currencies - Apparel +24%, Sports Instruments 18%, Fitness +12%, Footwear +5% - Geographically, EMEA +8%, Americas +1% and Asia Pacific +9% - Russia +38%, China +29% - Own retail and e-commerce prog
Slide 15: Q2: unchanged 2013 outlook
Q2: unchanged 2013 outlook • In 2013, Amer Sports’ - Net sales growth in local currencies is expected to meet at minimum the company’s long-term annual 5% growth target - EBIT margin excluding non-recurring items is expected to improve from 2012 15 Amer Sports CMD 2013
Slide 16: Long-term financial targets – status
Long-term financial targets – status Target 2009 2010 2011 2012 2013 Growth Delivering organic, -4% 8% 9% 5% 5% currency-neutral annual growth of 5% Profitability EBIT of at least 10% of 3.2% 6.2% 7.2% 6.7% net sales Cash flow Annual free cash flow C/F of Net C/F of Net C/F of Net C/F of equal to n
Slide 17: Progress in Business Areas
Progress in Business Areas Business area Objective Status Footwear Further accelerate growth Growth continues with high profitability Apparel Drive significant revenue growth Fast growth with improving profitability Winter Sports Equipment To sustainable profitability, irrespective of Efficient, win
Slide 18: Footwear and Apparel continue fast growth
Footwear and Apparel continue fast growth Status Net sales • Bypassing 0.6 BEUR in softgoods MEUR 600 • High profitability in Footwear, improving in Apparel, approaching “tipping point” 500 • “Category-based” model is now 400 repeatable 300 Apparel Development FW • Fast growth continues with a line
Slide 19: New Footwear and Apparel product lines
New Footwear and Apparel product lines EXAMPLES 19 Amer Sports CMD 2013
Slide 20: Winter Sports – consumer centric, flexible and efficient
Winter Sports – consumer centric, flexible and efficient Status Net sales MEUR • Role & objectives remain unchanged 500 • Winter conditions impacted sales 400 • Successful operational improvements 300 (“Focus-program”): GM% up and W/C down 200 Development 100 • Continued market leadership • Growth i
Slide 21: Surrounding the consumer in Winter Sports
Surrounding the consumer in Winter Sports From Skis… …to Skiing HELMETS GOGGLES BODY PROTECTION APPAREL BOOTS BINDINGS SKI POLES S 21 Amer Sports CMD 2013
Slide 22: Wilson: fight for acceleration
Wilson: fight for acceleration Status EUR Net sales • Global leader in tennis and selected 600 team sports hardgoods 500 400 • Slow-growth segments, market share 300 competition 200 • Now organized for softgoods growth 100 under category model 0 2009 2010 2011 2012 Development • Protecting the stron
Slide 23: Ball Sports “more” expansion
Ball Sports “more” expansion EXAMPLES 23 Amer Sports CMD 2013
Slide 24: Mavic, Suunto and Precor have all made a turnaround
Mavic, Suunto and Precor have all made a turnaround in the last three years Mavic • Has returned to a high profitability level • Growth continues in cycling apparel, footwear as well as in the core bike components Suunto • Turnaround achieved in profitability and now in growth mode • Successful re-f
Slide 25: Mavic Enduro
Mavic Enduro 25 Amer Sports CMD 2013
Slide 26: Suunto Ambit2/2S
Suunto Ambit2/2S 26 Amer Sports CMD 2013
Slide 27: Precor’s international growth has been fast
Precor’s international growth has been fast APAC, EMEA & LatAm Sales of Precor MEUR 120 90 60 30 0 2009 2010 2011 2012 27 Amer Sports CMD 2013
Slide 28: Future Group Development
.j FUTURE GROUP DEVELOPMENT
Slide 29: Amer Sports future development scenarios
Amer Sports future development scenarios ? Sales >3B€ (+5%/a) EBIT ~10% Building blocks in place Building blocks in preparation Sales ~2.5B€ EBIT ~10% Sales ~1.5B€ EBIT <3% 2009 2015–16 2020 29 Amer Sports CMD 2013
Slide 30: Amer Sports business logic
Amer Sports business logic 3. Integration & Accessories, synergies Soft digital products 4. goods & solutions etc. Consumer Scalable for relevant, growth steps 1. authentic brands Repeatable 2. Hard business model goods 30 Amer Sports CMD 2013
Slide 31: Sustainable growth model
Sustainable growth model ”Protect and “Add more” “Learn for grow the core” the future” Digital product & solutions Rental trend KEY: Right proportion of initiatives and investments in each bucket 31 Amer Sports CMD 2013
Slide 32: Summary
SUMMARY
Slide 33: Summary
Summary • Our strategies are working • We still have work to do to reach our targets • We are proving the “Amer Sports repeatable model” • We continue to execute with confidence 33 Amer Sports CMD 2013
Slide 34: Amer Sports CMD 2013
www.amersports.com Amer Sports CMD 2013 anen seonrs
Slide 35: Amer Sports: Performance products for active sports
LA AMER SPORTS PERFORMANCE PRODUCTS FOR ACTIVE SPORTS S| BS ; nm satomon Wioon. A ATOMIC ARCTERYX Cmavic) SUUNTO MPRECOR