Amer Sports, Inc. · NYSE:AS
Amer Sports — H1 2007 Earnings Presentation
17 slides from Amer Sports's earnings presentation, Aug 9, 2007
Slide 1: Interim Report H1/07
Interim Report H1/07 August 9, 2007 Roger Talermo, President and CEO
Slide 2: Q2 in brief
Q2 in brief • All businesses except winter sports equipment developing as expected • Winter sports equipment pre-orders for 2007/08 season weaker than expected – Sales decline is now expected to be in excess of 20% • Net sales at last year’s level in local currencies – Currencies reduced net sales b
Slide 3: Profit and loss statement
Profit and loss statement MEUR Q2/07 Q2/06 Ch % 1-6/07 1-6/06 Ch % 2006 Net sales 310.3 321.8 -4 692.1 739.2 -6 1,792.7 EBIT -12.8 -9.0 -20.6 -7.4 120.2 Net financials -1.1 -6.4 -7.8 -11.3 -23.6 EBT -13.9 -15.4 -28.4 -18.7 96.6 Taxes 3.5 4.6 7.1 5.6 -26.1 Net result -10.4 -10.8 -21.3 -13.1 70.5 EPS
Slide 4: Breakdown of net sales
Breakdown of net sales MEUR Q2/07 Q2/06 Ch % Ch %*) 1-6/07 1-6/06 Ch % Ch %*) 2006 Salomon 73.0 76.4 -4 -3 183.5 199.7 -8 -6 661.4 Wilson 150.4 159.5 -6 -1 314.0 337.8 -7 -1 569.6 Precor 59.7 59.3 1 7 133.5 132.2 1 8 275.6 Atomic 4.8 5.6 -14 -11 17.3 29.3 -41 -40 204.8 Suunto 22.4 21.0 7 9 43.8 40.2
Slide 5: Breakdown of EBIT
Breakdown of EBIT MEUR Q2/07 Q2/06 Ch % Ch %*) 1-6/07 1-6/06 Ch % Ch %*) 2006 Salomon -19.1 -17.9 -7 -9 -41.7 -40.3 -3 -7 23.6 Wilson 15.0 17.2 -13 -7 34.8 41.5 -16 -10 54.6 Precor 6.2 4.1 51 61 16.1 16.1 0 9 34.8 Atomic -11.1 -12.2 9 8 -24.4 -21.6 -13 -16 16.6 Suunto 1.4 3.7 -62 -61 2.9 4.8 -40 -36
Slide 6: Business Segments
AMER SPORTS Business Segments
Slide 7: Wilson
Wilson • H1/07 net sales on last year’s level in local currencies (Q2/07: -1%) – Racquet Sports +6% – Team Sports -4% – Golf -9% • Investments in marketing and IT system upgrades increased costs • Wilson’s result is expected to improve in H2 • NCAA basketball contract renewed • Federer and Venus Wil
Slide 8: Precor
Precor • H1/07 net sales increased 8% in local currencies (Q2/07: +7%) • Continued success in both North American Commercial and Consumer markets – Agreements with 24 Hour Fitness and SATS – Product launches building momentum • The new AMT® is generating strong demand • A line of three new treadmill
Slide 9: Suunto
Suunto • H1/07 net sales increased 12% in local currencies (Q2/07: +9%) – Wristop computers +29% boosted by new Training product line – Diving instruments -4% • Diving instruments and wristop computers accounted for 69% (70%) of net sales • New outdoor product line introduced MEUR Q2/07 Q2/06 Ch % C
Slide 10: Salomon
Salomon • H1/07 net sales declined 6% in local currencies (Q2/07: -3%) – Winter Sports Equipment -37% – Apparel & Footwear +24% – Mavic +7% • Strong development of Apparel & Footwear and Mavic sales continued • Winter sports equipment pre-orders for 2007/08 season clearly weaker than expected – Wint
Slide 11: Atomic
Atomic • H1/07 net sales declined 40% in local currencies (Q2/07: -11%) • Winter sports equipment pre-orders for 2007/08 season weaker than expected – Winter sports equipment sales decline is now expected to be in excess of 20% – Market share is expected to be gained in ski boots and XC equipments –
Slide 12: Strategic focus going forward
Strategic focus going forward • Winter sports equipment – Measures to improve profitability have been taken • More efficient cost structures and improved sourcing • Enhanced product lines, tightened cooperation and leveraged industrial synergies • Strong focus on product development – Determined act
Slide 13: New organization
New organization AMER SPORTS CORPORATION Business areas Group level functions Winter & Outdoor Finance, administration Salomon, Atomic, Mavic, Arc’teryx, Bonfire and communications Supply chain management and Ball Sports information technology Fitness Sales and channel management Instruments
Slide 14: Outlook
AMER SPORTS
Slide 15: Full-year outlook 2007 and guidance
Full-year outlook 2007 and guidance • EBIT is not expected to reach last year's level – Mild winter lowered the amount of pre-orders for 2007/08 more than expected and increased general caution regarding additional orders for the end of 2007 – Winter sports equipment EBIT will be negative • Other bu
Slide 16: amer.communications@amersports.com
amer.communications@amersports.com
Slide 17: 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