Amer Sports, Inc. · NYSE:AS
Amer Sports — Q1 2005 Earnings Presentation
22 slides from Amer Sports's earnings presentation, Apr 28, 2005
Slide 1: Interim Report January - March 2005
Interim Report January - March 2005 April 28, 2005 Roger Talermo President and CEO
Slide 2: Highlights
Highlights The year has started as expected in the sports equipment market Net sales in local currencies +5% in Q1/2005 – Strongest growth in Asia Pacific, +29% EBIT declined 22% to EUR 21.5 million
Slide 3: Key indicators
Key indicators Q1/05 Q1/04 Ch % 2004 Net sales (MEUR) 277.8 271.6 2 1,035.9 EBIT (MEUR) 21.5 27.4 -22 100.5 EBT (MEUR) 20.8 25.7 -19 97.0 EPS, cont. operations 0.20 0.24 0.96 (EUR)
Slide 4: Financial Review
Financial Review Pekka Paalanne CFO
Slide 5: Accounting changes
Accounting changes Discontinued operations presented on single line separately from continuing operations (IFRS 5) Warrants are expensed in the income statement (IFRS 2) Key indicators 2004 recalculated to correspond to these changes
Slide 6: Accounting changes
Accounting changes Q1/2004 FY2004 Reported net result 30.6 84.5 IFRS 2 -0.4 -1.9 IFRS 5 -13.5 -14.0 Continuing operations 16.7 68.6
Slide 7: Profit and loss statement, continuing operations
Profit and loss statement, continuing operations MEUR Q1/05 Q1/04 Ch % 2004 Net sales 277.8 271.6 2 1,035.9 EBIT 21.5 27.4 -22 100.5 Net Financials -0.7 -1.7 -3.5 EBT 20.8 25.7 -19 97.0 Taxes -6.6 -8.9 -28.1 Net result 14.2 16.7 -15 68.6 ROCE % 16.4 22.5 17.7
Slide 8: Breakdown of net sales
Breakdown of net sales MEUR Ch % in local Q1/05 Q1/04 Ch % currencies 2004 Racquet Sports 61.0 58.7 4 6 210.3 Golf 47.4 48.6 -2 0 147.7 Team Sports 63.9 61.5 4 9 185.0 Winter Sports 26.5 28.9 -8 -8 205.6 Fitness Equipment 59.0 55.1 7 12 210.1 Sports Instruments 20.0 18.8 6 7 77.2 Total 277.8 271.6 2
Slide 9: Breakdown of EBIT
Breakdown of EBIT MEUR Q1/05 Q1/04 Ch % 2004 Racquet Sports 9.0 7.2 25 26.9 Golf 4.5 3.2 41 0.5 Team Sports 12.6 12.3 2 24.6 Winter Sports -8.4 -5.1 - 29.6 Fitness Equipment 5.8 9.5 -39 23.9 Sports Instruments 1.7 1.8 -6 8.0 HQ -3.7 -1.5 - -13.0 Total 21.5 27.4 -22 100.5
Slide 10: Geographic breakdown of net sales
Geographic breakdown of net sales MEUR Q1/05 Q1/04 Ch % Ch % in local 2004 currencies Americas 174.3 174.5 - 4 597.1 EMEA 72.6 72.5 - - 327.2 Asia Pacific 30.9 24.6 26 29 111.6 Total 277.8 271.6 2 5 1,035.9
Slide 11: Net Sales
Net Sales By division By geography Sports Instruments Golf Asia 7% 17% Pacific 11% Fitness Equipment 21% Racquet EM EA Sports 26% 22% W inter Sports Americas 10% Team Sports 63% 23%
Slide 12: Balance sheet
Balance sheet MEUR 31 March 2005 31 Mach 2004 31 Dec 2004 Goodwill 293.2 304.1 284.2 Other non-current assets 115.7 138.3 114.9 Inventories 161.7 132.5 154.4 Receivables 236.6 290.5 260.0 Cash 18.9 28.0 17.0 826.1 893.4 830.5 Equity 450.3 428.6 461.3 Int. bearing debt - Long term 30.9 32.8 27.1 - Sh
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 31 Mar 2005 31 Mar 2004 31 Dec 2004 Equity ratio, % 54.5 48.0 55.5 Gearing, % 31 29 29
Slide 14: Divisional highlights
Divisional highlights Roger Talermo President & CEO
Slide 15: Racquet Sports
Racquet Sports Racquet Sports continued to perform well – Americas +6%, Asia Pacific +22%, EMEA -2% US tennis market was flat in Q1 (TIA) Wilson is the global market leader in tennis rackets – Tennis rackets +10%; high-end segment +6% – Tennis balls +5%, footwear -8% Wilson the “Official Tennis Ball
Slide 16: Golf
Golf The global golf equipment market remained flat – Overall sales of golf equipments to the trade fell by 3% in the US – The number of rounds played declined 3.5% in the US Net sales and EBIT on track – Sales of golf clubs +4%: premium product line +23% – Sales in Asia Pacific grew by 30% Ch % in
Slide 17: Team Sports
Team Sports Good performance continued – EMEA 9%, Americas 7%, Asia Pacific +120% – Japan particularly good Baseballs and softball bats +34% Training equipment sales boosted by better use of sales and distribution network, and product launches Ch % in local MEUR Q1/05 Q1/04 Ch % currencies 2004 Net
Slide 18: Winter Sports
Winter Sports Deliveries are heavily weighted towards the latter part of the year Sales in EMEA -4%, Americas -27% – USA was suffering from poor snow conditions Investments in distribution network in Italy and Russia A successful season 2004/2005 for Atomic athletes New products for 2005/2006: IZOR
Slide 19: Fitness Equipment
Fitness Equipment In US, demand for fitness equipment continued to grow Sales up +12% in local currencies – Sales outside the Americas +14% – Strong growth in stationary cycles and treadmills EBIT down by 36% – Profitability of the integrated business not yet satisfactory – Increased costs levels Ch
Slide 20: Sports Instruments
Sports Instruments Sports instruments sales up +6% – EMEA +10%, Americas +5% – Sales of diving instruments +15%: Suunto D9 widely awarded – Wristop computers +2% – Diving and water sports suits +10% New sports-specific products – Speed and distance measurement accessories for Suunto t6 wristop compu
Slide 21: Outlook for 2005
Outlook for 2005 Demand for sport equipment will remain good – Growth stabilizing in the US – Slow recovery continues in Europe and Japan Comparable net sales in local currencies +3–5% The earnings per share EUR 0.90–1.05 (2004: EUR 0.96 *) * Continuing operations
Slide 22: Target: To be the no. 1 sports equipment company in the world
Target: To be the no. 1 sports equipment company in the world