Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (May 2009)
38 slides from Amer Sports's investor day presentation, May 28, 2009
Slide 1: CMD 2009 Strategy and business update
CMD 2009 Strategy and business update Roger Talermo, President and CEO May 28, 2009
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 uncerta
Slide 3: From Amer Group to Amer Sports
From Amer Group to Amer Sports SPORTS EQUIPMENT CONGLOMERATE COMPANY Clothing Printed publication Cars Shipping business Paper wholesale Real estate Florist Tobacco 1950 1989 1994 1999 2002 2005 3
Slide 4: The strategic journey of our brands
The strategic journey of our brands From ball sports From ski From mechanical From cardio From winter sports equipment manufacturer sports instruments equipment to total to mountain manufacturer to to the world’s to the world’s most solution provider sports specialist surrounding ball favorite skiin
Slide 5: Amer Sports strategy
Amer Sports strategy Our strategy is based on the pillars of our: • strong global brands • consumer-focused product strategy • innovative research and product development • first-class customer service • efficient supply chain 5
Slide 6: Global brands
Global brands • Our brands are trusted by consumers world-wide • They all stand on the four cornerstones of: Authenticity Authority Attitude Aesthetics • We earn the consumer’s trust by setting the standard for innovation and usability in every sport we participate in 6
Slide 7: A year-round, full-service supplier
A year-round, full-service supplier • Our wide range of products cover the core sports of the industry for consumers and balance our business with the trade as the seasons turn and the popularity of individual sports fluctuate. Winter Spring Summer Autumn 7
Slide 8: Innovation
Innovation • We design and manufacture the industry’s best products • We also continuously evaluate new business models and processes to ensure we are operating in the most efficient and profitable way 8
Slide 9: Global distribution and supply chain
Global distribution and supply chain • Our group-wide platforms for sales, logistics, Asian sourcing and information technology help us operate efficiently and cost-effectively • We are focused on using our collective know- how to deepen our understanding of consumer purchasing behavior and continuo
Slide 10: Our global landscape
Our global landscape HQ Helsinki, Finland Amer Sports has its own operations in 36 countries 10
Slide 11: Mature and emerging markets
Mature and emerging markets 11
Slide 12: Annual sporting goods sales per capita
Annual sporting goods sales per capita Asia Canada $ 13 $ 284 EU Russia $ 177 $ 23 China Japan USA $5 $ 165 $ 338 Africa & ME India $5 $2 Americas Lat Am $134 $ 17 World Avg. $ 38.9 12
Slide 13: Mature markets trends
Mature markets trends • Consumers: – Wellness and healthy lifestyles trend – People living longer, acting younger – Importance of work-life balance – Increased standards of living – Information society • Trade: – Channel competition between • Traditional retail stores, brand stores, factory outlets,
Slide 14: Emerging markets
Emerging markets • Consumers: – Large and growing population base – Increasing spending power and free time – Owning the best sports equipment an indication of status / wealth • international brands stand out • Trade: – Retail infrastructure still emerging through domestic and international players
Slide 15: Amer Sports growth strategy
Amer Sports growth strategy • Grow our brands organically – Deepening the footprint of our authentic brands by surrounding the consumer – Taking market share from our competitors • Maximize competitive advantage through group initiatives – Global One process management – Customer relationship manage
Slide 16: The Amer Sports strategic framework
The Amer Sports strategic framework Performance key driver Specialist retail Sports equipment Technical Protectives apparel and and enabling footwear gear ESSENTIAL CORE FOR PARTICIPATION NON-CORE BEFORE & AFTER Sportswear PARTICIPATION General retail Lifestyle 16
Slide 17: Growth within the Amer Sports strategic framework
Growth within the Amer Sports strategic framework Performance key driver Continue development - Focus on profitability Specialist retail Sports equipment Technical Protectives apparel and and enabling footwear gear ESSENTIAL CORE FOR PARTICIPATION NON-CORE BEFORE & AFTER Sportswear PARTICIPATION Gen
Slide 18: Sports equipment
Sports equipment • Market size EUR 33 billion – Market growth 3–4% – EBIT 6–8% • Amer Sports sales EUR 1.25 billion – No. 1 in racket sports – No. 1 in winter sports – No. 1 in American team sports – No. 3 in premium fitness – Leading sports instrument and bicycle component manufacturer • Initiative
Slide 19: Growth within the Amer Sports strategic framework
Growth within the Amer Sports strategic framework Performance key driver Specialist retail Sports equipment Growth area Technical - Invest and develop Protectives apparel and and enabling gear ESSENTIAL CORE footwear FOR PARTICIPATION NON-CORE BEFORE & AFTER Sportswear PARTICIPATION General retail L
Slide 20: Technical apparel and footwear
Technical apparel and footwear • Market size total apparel and footwear EUR 87 billion • Technical apparel and sport-specific footwear est. 10–15% of total – Market Growth >10% – EBIT >10% • Amer Sports sales approx. EUR 300 million – Salomon, winter & outdoor – Arc’teryx, winter & outdoor – Wilson,
Slide 21: Growth within the Amer Sports strategic framework
Growth within the Amer Sports strategic framework Performance key driver Specialist retail Opportunity area Sports - Investigate & equipment activate Technical Protectives apparel and and footwear enabling ESSENTIAL CORE gear FOR PARTICIPATION NON-CORE BEFORE & AFTER Sportswear PARTICIPATION General
Slide 22: Protectives and enabling gear
Protectives and enabling gear • Market today part of sports equipment • Growing faster than traditional equipment – Market Growth >10% – EBIT >10% • Amer Sports sales approx. EUR 50 million – Wilson Baseball, Tennis – Salomon – Atomic • New initiatives – Helmets: Salomon, Wilson, Mavic, Atomic – Bod
Slide 23: Next phase in the strategic evolution
Next phase in the strategic evolution
Slide 24: Going forward
Going forward • Create more dependency between our brands and our platforms so that business is channeled and developed through our group efforts • All of our businesses should benefit from our global structure 24
Slide 25: The strategic evolution of Amer Sports
The strategic evolution of Amer Sports Phase I Phase II Phase III Phase IV 1996 - 1999 2000 - 2005 2006 - 2008 2009 - • Build the foundation for • Become the undisputed leader in • Integration of new • Achieving a sports equipment the global sports equipment entities and entering growth through comp
Slide 26: Why moving to phase IV
Why moving to phase IV • Integration to re-gain global strategic agility: – Accelerate growth – Lower our cost base – More transparency and control – Improve our professionalism and talent management • Phase IV result: Achieving our publicly-stated goals 26
Slide 27: Integration through group platforms and enablers
Integration through group platforms and enablers PLATFORMS Americas EMEA APAC ENABLERS • Sales and channel • HR management Winter and • IT • Customer rel. Outdoor management • Legal • Retail planning • Finance Ball • Marketing • Supply Chain Sports management • Sourcing • Logistics (D&T) Fitness 27
Slide 28: Integration happens at all levels of the matrix
Integration happens at all levels of the matrix Group Business segment Ball Sports W&O Fitness Geographical area EMEA Americas APAC 28
Slide 29: Key integration programs
Key integration programs New management model Sales and channel management • EXB • Global One Order To Cash • Business area boards • Project Beta (EMEA re-structuring) • Regional boards • Japan • North America • Arc’teryx SC&IT • IT global team-global system Business area • Global sourcing • Winter
Slide 30: New management model
New management model • One Amer Sports management team to drive Amer Sports strategy implementation, common goals, and the whole group’s performance • A more customer and service oriented approach to the business • An improved model to identify synergy benefits, raise the quality of our performance,
Slide 31: Evolution of organizational structure
Evolution of organizational structure Group Business Ball Sports W&O Fitness APP / FW segments Geographical EMEA Americas APAC areas 31
Slide 32: Softgoods business area
Softgoods business area • One management team • Common sourcing • Integrated product development 32
Slide 33: Summary
Summary • Transformation of management, processes, and organization: – Better and more unified service to our customers – Strategic and operational agility, including • Lower cost base • Cross-selling / cross-promotion • Improved talent management and professionalism • Improved overall quality 33
Slide 34: Short-term outlook
Short-term:outlook
Slide 35: Current market conditions
Current market conditions • Exceptional business environment for the next 1-2 years – Financial market crisis – Huge volatility in commodities market – Significant currency rate fluctuations – Global recession – Fast and significant drop in consumer goods demand – Poor visibility going forward 35
Slide 36: Short-term priorities
Short-term priorities • Maximize cash flow • Continue to build towards mid- – Working capital reduction and long-term growth goals • DSI management – Ability to re-allocate funds to • DSO improvement growth areas – Capex management • Strengthen our balance sheet • Profitability protection and build
Slide 37: Outlook for 2009
Outlook for 2009 • Amer Sports’ full-year outlook is clouded by the uncertainty in consumer demand in general. • Visibility will improve during Q2 when the pre-orders in winter sports equipments are collected, but the uncertainty surrounding the Fitness segment’s performance will remain high through
Slide 38: Determined to win as Amer Sports
DETERMINED TO WIN AS AMER SPORTS 38