Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (August 2012)
11 slides from Amer Sports's investor day presentation, Aug 30, 2012
Slide 1: Towards the Long-Term Financial Targets
TOWARDS THE LONG-TERM FINANCIAL TARGETS August 30, 2012 // Jussi Siitonen, CFO Contents 1)) Targeted g P&L & structure – Investments and Scale & Synergy y gy 2) Half-way milestone: financial review 3) Financial flexibility for further growth 4) We continue moving 2 Amer Sports CMD 2012 1
Slide 2: Targeted P&L Structure: Investments and Scale & Synergy
TARGETED P&L STRUCTURE: INVESTMENTS AND SCALE & SYNERGY Targeted P&L Structure towards 10% EBIT • Targeted P&L structure at Group level 2011 Target - 45% Gross Margin (currently approx. 44%) - OPEX 35% off N Nett S Sales l ((currently tl approx. 37%) Gross Margin 43 4% 43.4% 45% OPEX 36.9% 35% • Cat
Slide 3: Half-Way Milestone: Financial Review
HALF-WAY MILESTONE: FINANCIAL REVIEW Long-term financial targets – What’s working, what’s not Target 2012 Working / Not Working Growth Delivering organic, currency- Investments delivering the growth neutral annual growth of 5% Profitability EBIT of at least 10% of net GM improvement through investme
Slide 4: We are driving value creation / Growth driven by investments
We are driving value creation Capital Turnover 4 35 3,5 Return on Capital Employed 2007-2012E 3 2,5 2012E 12% 2 2011 2007 13% 1,5 5% 1 2008 2010 2009 8% 10% Cost of Capital ~12%* 0,5 4% 0 0% 2% 4% 6% 8% 10 % YEAR EBIT ROCE% *) pre-tax Margin 7 Amer Sports CMD 2012 Growth: Growth driven by investment
Slide 5: GM up ~4%pts in 3 years / Broad-based GM improvement
Profitability: GM up ~4%pts in 3 years GM improvement 2009-2012E,%pts 4.0 • Main drivers for Gross Margin i improvement t 35 3.5 Apparel - Scale (category model) 3.0 - “Focus” project in WSE 2.5 - B2C expansion 2.0 WSE - Complexity reduction 1.5 - Better innovation Cycling 1.0 • Footwear Gross Margi
Slide 6: Main OPEX investments completed 2012
Profitability: Main OPEX investments completed 2012 EBIT Variance 2009-2012E (EURm) 300 • OPEX growth th = topline t li 250 growth in 2009-2012E 200 • OPEX growth components: - Growth investments 50% 150 - Topline driven 30% - Maintenance 20% 100 • OPEX growth to stabilize 50 when investments comple
Slide 7: Financial Flexibility for Further Growth
Profitability: Resources vs. Portfolio Roles • Resource allocation and related OPEX follow each Business Unit’s strategic t t i role l iin th the portfolio, tf li and d scale l & synergy ttargets t • This requires further resource fluidity in the organisation - Right softgoods / hardgoods resource a
Slide 8: Action based cash flow improvement / Balance Sheet enables current investments
Action based cash flow improvement 150 • Group cash flow highly volatile Monthly Free Cash Flow (EURm) due to seasonalityy 100 - Cash flow is made in Dec-Mar • Programs in place to improve 50 cash flow and reduce volatility - Tight working capital 0 management - Lead time reduction in WSE -50 - Glob
Slide 9: We Continue Moving: Refinancing needs covered
Short & Mid-term refinancing needs covered 225 200 • Cash reserves EUR 175 217m (30.6.12): 150 funding for seasonally 125 high working capital 100 in Q3 75 50 • Unused credit 25 facilities EUR 240m 0 2012 2013 2014 2015 2016=> Pension Loan Term Loan Bonds Commercial Papers Other The average interest
Slide 10: Stay the course
Stay the course • Execute the glidepath guided by the long-term financial targets – Complete target GM of 45% with further OPEX efficiencies – Continuous improvement and necessary adaptations • Secure financial flexibility – Maintain solid balance sheet – Actively improve cash flow and reduce season
Slide 11: www.amersports.com
www.amersports.com 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