Slide 1: Results for the 2004 financial year
Results for the 2004 financial year February 3, 2004 Roger Talermo President and CEO 2004 highlights A good year for the sports equipment industry – Solid growth for Amer Group – Market share gained and position improved Amer Sports’ sales +11% in 2004* – Strongest growth in Fitness Equipment, +
Slide 2: Key indicators
Key indicators 2004 2003 Ch % Net sales (MEUR) 1,058.8 1,094.1 -3 EBIT (MEUR) 122.0 117.7 4 EBT (MEUR) 118.6 109.5 8 EPS*) (EUR) 1.19 1.12 *) Bonus issue-adjusted, 1:2 Strengthening the company’s strategic position Small but strategically important acquisitions Expanding the sales and distributi
Slide 3: Financial Review: Profit and loss statement
Financial Review Pekka Paalanne CFO Profit and loss statement MEUR 2004 2003 Ch % Net sales 1,058.8 1,094.1 -3 EBIT 122.0 117.7 4 Net Financials -3.4 -8.2 EBT 118.6 109.5 8 Taxes -33.8 -31.0 Net result 84.5 78.1 8 ROCE % 21.5 21.1 3
Slide 4: Breakdown of net sales and EBIT
Breakdown of net sales MEUR 2004 2003 Ch % Ch % in local currencies Racquet Sports 210.3 207.4 1 6 Golf 147.7 156.1 -5 -2 Team Sports 185.0 181.0 2 13 Winter Sports 205.6 188.2 9 11 Fitness Equipment 210.1 175.5 20 31 Sports Instruments 77.2 76.6 1 3 1,035.9 984.8 5 11 Tobacco 22.9 109.3 Total 1,058
Slide 5: Geographic breakdown of net sales
Geographic breakdown of net sales MEUR 2004 2003 Ch % Ch % in local currencies Americas 597.1 573.2 4 14 EMEA 350.1 417.8 -16 -17 Asia 111.6 103.1 8 15 Total 1,058.8 1,094.1 -3 2 Net Sales By divisions By geography Other Golf Asia 2% 14% Pacific Fitness 20% 11% Racquet Sports Sports Instruments 20%
Slide 6: Profit and loss statement Q4/2004
Profit and loss statement Q4/2004 MEUR Q4/04 Q4/03 Ch % Net sales 261.0 265.4 -2 EBIT 35.1 19.8 77 Net financials -1.0 -1.9 EBT 34.1 17.9 91 Taxes -9.7 -5.1 Net result 24.3 12.7 91 Breakdown of net sales Q4/2004 MEUR Q4/04 Q4/03 Ch % Ch % in local 2004 currencies Racquet Sports 39.3 37.0 6 11 210.3
Slide 7: Breakdown of EBIT Q4/2004 and Balance sheet
Breakdown of EBIT Q4/2004 MEUR Q4/04 Q4/03 2004 Racquet Sports 4.5 1.9 26.9 Golf -2.9 -11.5 0.5 Team Sports 5.7 4.2 24.6 Winter Sports 20.5 16.0 29.6 Fitness Equipment 7.6 7.5 23.9 Sports Instruments 2.5 1.6 8.0 Headquarters -3.5 -1.9 -11.1 34.4 17.8 102.4 Tobacco 0.7 2.0 19.6 Total 35.1 19.8 122.0
Slide 8: Divisional highlights
Equity ratio and gearing, % 60 50 40 Eq ratio 30 Gearing 20 10 0 2000 2001 2002 2003 2004 31 Dec 2004 31 Dec 2003 Equity ratio, % 55.5 48.4 * 2000-2002 FAS Gearing, % 29 33 Divisional highlights Roger Talermo President & CEO 8
Slide 9: Racquet Sports
Racquet Sports A record year Global tennis market grew about 2% Global market share in tennis racquet was 36% – United States 46%, Europe 30%, Japan 28% – Wilson was the best-selling brand in North America and Japan Wilson introduced nCode racquet line utilizing nanotechnology Ch % in local
Slide 10: Golf
Golf The global golf equipment market was flat – Market up by 3-5% in the North America and Europe, and contracted in Japan Golf’s main goal, a positive EBIT, was reached Introduction of the renewed Wilson Staff brand Ch % in local MEUR 2004 2003 Ch % currencies Net sales 147.7 156.1 -5 -2 EBI
Slide 11: Team Sports
Team Sports Team sports sales up +13% – Baseball particularly good – Sales outside the US +16% Acquisition of ATEC completes baseball offering Ch % in local MEUR 2004 2003 Ch % currencies Net sales 185.0 181.0 2 13 EBIT 24.6 23.3 6 18 Team Sports, outlook 2005 Comparable net sales in local cur
Slide 12: Winter Sports
Winter Sports Early season 04/05 winter sports market up +3% – Average selling price of winter sports equipment declined – All time record: 940,000 pairs of alpine skis sold – Growth in boots, bindings, snowboards and XC skis Investments in distribution Successful Atomic Racing Team Ch % in lo
Slide 13: Fitness Equipment
Fitness Equipment In North America, demand for fitness equipment grew approximately 5% Sales up +31% – Sales growth boosted by the acquisitions made in January – Growth 27% outside North America Ch % in local MEUR 2004 2003 Ch % currencies Net sales 210.1 175.5 20 31 EBIT 23.9 26.8 -11 Fitness E
Slide 14: Sports Instruments
Sports Instruments Wristop computers sales +2% – Diving instruments flat – Wristop and diving instruments 64% of net sales New sports-specific wristop computers – Several new product launches: D9,n6HR, n3, X9, G3, t6 – Accessory to t6, speed and distance sensor, launched in Q4 Ch % in local MEUR
Slide 15: Outlook for 2005 and new financial targets
Outlook for 2005 100% focused sports equipment company Growth in demand for sports equipment stabilizing in the US – Slow recovery in demand continues in Europe and Japan Comparable net sales in local currencies +3-5% The earnings per share EUR 0.90–1.05 New financial targets Average organ
Slide 16: Additional information
Target: To be the no. 1 sports equipment company in the world Additional information 16
Slide 17: Racquet sports and Golf
Racquet sports OTHER 23% ASIA PACIFIC 22% TENNIS RACQUETS AMERICAS 45% FOOTWEAR 48% 11% TENNIS BALLS 21% EMEA 30% Golf OTHER 9% ASIA PACIFIC BAGS & GLOVES 20% 11% AMERICAS CLUBS 53% 56% BALLS EMEA 24% 27% 17
Slide 18: Team Sports and Winter Sports
Team Sports OTHER ASIA PACIFIC EMEA 20% AM.FOOTBALLS 1% 3% 22% APPAREL 11% BASEBALLS & GLOVES BASE/ 19% AMERICAS SOFTBALL BASKETBALLS 96% BATS 16% 12% Winter Sports ASIA PACIFIC SNOWBOARD OTHER 7% 5% 5% AMERICAS 20% XC SKI EQUIP. 6% ALPINE SKI EQUIPM. EMEA 82% 75% 18
Slide 19: Fitness Equipment and Sports Instruments
Fitness Eqipment ASIA PACIFIC HOME USE 6% 29% EMEA 15% AMERICAS 79% CLUBS & INSTITUTIONS 71% Sports Instruments ASIA PACIFIC OTHER WRISTOPS 35% 10% 36% EMEA 50% DIVING INSTRUMENTS AMERICAS 29% 40% 19