Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (2004)
68 slides from Amer Sports's investor day presentation, 2004
Slide 1: Wilson Team Sports
AMER SPORTS Wilson Team Sports eee
Slide 2: How we have taken a traditional non-growth business
How we have taken a “traditional” non-growth business and turned it into a consistent growth area for Amer Sports
Slide 3: Goal
Goal Premiere Team Sports Company in the World – In Line with Core Strategies / Values – Equipment Based – Broad Based Business – Premium Position – Financial Leaders
Slide 4: 5 Year Profitability
5 Year Profitability 5 Year Growth $64.8m (146%) $205.9 Sales 141.1 36.4% $75.0 Net GP 30.6% 43.1 25.3% $52.2 OPEX 28.8% 40.6 2003 12.6% $25.9 EBIT 4.5 1998
Slide 5: Agenda
Agenda Markets Products Brands Distribution Financial History Key Business Drivers International Expansion Acquisitions Future - How can we continue to outperform?
Slide 6: Wilson Team Business / Sport
Wilson Team Business / Sport Soccer Training Other 5% 5% 1% Volleyball 3% BB/SB 36% Apparel 12% Football 21% Basketball 17%
Slide 7: Wilson Team Business / Region
Wilson Team Business / Region Int'l 12% USA 88% Europe 13% Latin America 37% Japan 17% Asia 4% Australia 4% Canada 25%
Slide 8: International Team Sports
International Team Sports 30.0 26.1 25.0 22.4 20.0 18.2 20.0 15.2 15.0 12.9 10.0 1999 2000 2001 2002 2003 2004F
Slide 9: U.S. Team Sports Market Share Estimates
U.S. Team Sports Market Share Estimates $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 ll all lls lvs ts er all ba Ba cc ba otb etb ll G Non WSG y So lle se sk Fo Ba Vo Ba Ba WSG Football Basketball Baseballs Ball Glvs Bats Volleyball Soccer Total WSG 43.5 31.3 9.2 31.0 21.7 5.0 5.5 147.2 Non WSG 16.5
Slide 10: Products / Strategy
Products / Strategy Establish position in Premium market Commercialize this success through product line Example - Basketballs
Slide 11: Product Line Segmentation
Product Line Segmentation Our Goal is to simplify buying process for Consumers Simple, Relevant Messages Logic to Position/Price Points
Slide 12: Branding
AMER SPORTS Branding eee
Slide 13: Team Sports Brand Wilson
Team Sports Brand Wilson Our Brands are our most valuable assets Our actions must invest/build these assets for the future We want Consumers to have a wonderful, enjoyable experience with our Brand that can last a lifetime We want our Customers to have a rewarding experience with our Brands
Slide 14: Wilson / DeMarini / ATEC
Wilson / DeMarini / ATEC We are fortunate to have three Superior Brands – Wilson – DeMarini – ATEC It is our job to enhance/build these, reinforce the Premium, Authentic position in our Sports
Slide 15: Goals / Opportunities With Wilson / DeMarini Brand Relationship
Goals / Opportunities With Wilson / DeMarini Brand Relationship Powerful Force together – Help one another DeMarini Elevates the Wilson Brand – Association with DeMarini makes us younger, cool – Puts our Company in the largest performance segment of the Sport – This leverage gets us into better
Slide 16: Positioning - Wilson And DeMarini Brands
Positioning - Wilson And DeMarini Brands DeMarini is our Primary Bat Brand – Wilson or is our Association on Packaging (Sign Off) – Helps elevate the Wilson Brand – Does not confuse Consumers Additional DeMarini Products – Softball specific – Bats specific / accessories
Slide 17: Branding: ATEC
/ Branding ATEC is our Hard -Core, Training Brand – Institutional Equipment – Geared for Teams, Coaches, Training – 20 + Year Heritage with Schools and Coaches – Excellent Reputation for Quality and Performance
Slide 18: Branding: Wilson
/ Branding Wilson is our Consumer Brand for Retail Products – Consumers know/trust Wilson – Leverage the breadth of our Product Offerings This will enhance/strengthen our Wilson Brand Presence in our Sports on Retail Shelves
Slide 19: Summary Brand Hierarchy
Summary Brand Hierarchy is the Umbrella Brand for all Team Products is our Primary Bat/Bat Accessory Brand is our institutional Training Equipment Brand
Slide 20: Consumer Initiatives
Consumer Initiatives Wilson / DeMarini Experience Personalized Ball Glove Program Virtual Uniform Designer In Store Presence for our Brand
Slide 21: Wilson/DeMarini Experience
Wilson/DeMarini Experience
Slide 22: Wilson/DeMarini Experience
Wilson/DeMarini Experience Wilson Experience
Slide 23: Personalized Ball Gloves
Personalized Ba 4A Wilson Baseball Custom Glove Center - Home - Microsoft Internet Explorer File Edit View Favorites Tools Help Search Favorites @i)meda 4) ess |@) C:\Documents and Settings|jsoukup\My Documents\databank\databank|configure. html gle ~ ¥| BPsearchweb - © @ F2veFark op Fh 449 blocked e
Slide 24: Personalized Uniforms For Teams
Personalized Uniforms For Teams
Slide 25: Personalized Uniforms For Teams
Personalized Uniforms For Teams
Slide 26: In-Store Brand Activities
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Slide 27: In-Store Brand Activities
In-Store Brand Activities
Slide 28: Customer Segmentation
AMER SPORTS Customer Segmentation ee
Slide 29: Team Sports Trade Channel Recap
Team Sports Trade Channel Recap Channel % Of Business Institutional 40% • Team Dealers • Institutional Team Distributors • Baseball Specialty Mass Merchants 28% Sporting Goods Retailers 23% All Other 9%
Slide 30: Key Business Drivers / Success Factors
Key Business Drivers/ Success Factors
Slide 31: Authentic Brand Position
Authentic Brand Position – Major Organizations/Athletes – Grassroots R&D - Process of real product innovation Operational excellence Team focused on excelling
Slide 32: Wilson is THE AUTHENTIC Sports Brand
is THE AUTHENTIC Sports Brand
Slide 33: NCAA Tournament
LAA NCAA Tournament AMER SPORTS [3] Wikson. SUUNTO A aronic PRECOR®
Slide 34: NFL Presence
AMER SPORTS At NFL Presence
Slide 35: World Series - October 2003
World Series - October 2003 “Pudge” Best Hitter in Playoffs Series MVP - Josh Beckett
Slide 36: AVP Tour
A AVP Tour AMER SPORTS Foto by Frank Goreszie "2002 i a Foto by Frank Goroszko 2002 ee USA
Slide 37: AVP Tour
AVP Tour AMER SPORTS SUUNTO
Slide 38: AVP Tour
At AVP Tour AMER SPORTS PRO VOLLEYBALL USA
Slide 39: Latin America Soccer Launch
LAL Latin America Soccer Launch AMER SPORTS BATISTUTA SUUNTO
Slide 40: Youth Baseball Championship
Youth Baseball Championship
Slide 41: Youth Baseball Championship
Youth Baseball Championship
Slide 42: Research & Development
Research & Development Consumer driven innovation – Playtests – “In the field, on the court” Attitude of “Why can’t we do it?” Many breakthrough products – 39 Patents issued/pending in last 2 years
Slide 43: The Bat That Bends!
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Slide 44: Operational Excellence
Operational Excellence Superior Service Provider For Our Customers
Slide 45: Dynamics/Change - Attitude Shift
Dynamics/Change - Attitude Shift We speak in their language – Their sales, not our shipments We are a proactive service provider – Consultative role – Maximize their sales/inventory goals – Builds trust
Slide 46: Our Sales / Service Organizations are aligned to serve markets
Our Sales / Service Organizations are aligned to serve 2 markets: – Institutional – Retail
Slide 47: Integrated Team Selling
Integrated Team Selling Professional sales approach led by the National Accounts Manager The National Accounts Manager is responsible for coordinating the Cross Functional Team – Business Director/Manager – Retail Analyst – In Store Specialist
Slide 48: Maximize Market Share
Maximize Market Share Focus on Superstar Products Increase Advertising/Promotional Share Train and Merchandise Efficiently Replenish
Slide 49: Retail Operations
Retail Operations Key Focuses of 2004 Service Levels Customer Instocks Forecasting Driving Promotions Proactive Inventory Increased Sales Solutions
Slide 50: Our Team
Our Team Specialist Mentality Professional “Hands On” Managers
Slide 51: Financial History
AMER SPORTS Financial History eee
Slide 52: 5 Year Profitability
5 Year Profitability 5 Year Growth $64.8m (146%) $205.9 Sales 141.1 36.4% $75.0 Net GP 30.6% 43.1 25.3% $52.2 OPEX 28.8% 40.6 2003 12.6% $25.9 EBIT 4.5 1998
Slide 53: Supply/Operational Performance
Team Sports Supply/Operational Performance IT IS POSSIBLE TO: Grow Sales Improve Service While….. Improving Cash Flow
Slide 54: Doing More with Less!
Doing More with Less! In the USA, Average Working Capital Down $2mm 5 Year Growth $64.8m (146%) Sales up 145% and Average Working Capital 96% Sales 24.3% Increased 145% with less W/C $183 36.4% Sales 36.8% 30.6% $126 25.3% 24.3% 28.8% $44 W/C 2003 12.6% 36.8% $46 1998
Slide 55: Where Are We Going To Find Growth?
Where Are We Going To Find Growth?
Slide 56: Ways Of Finding Growth - Many Opportunities
Ways Of Finding Growth - Many Opportunities • Softball Bat Company to Bat Company • USA Soccer to Global Soccer • USA Basketball to Global Basketball • Baseball Uniforms to All Team Uniforms • Basketballs Company to Basketball Company
Slide 57: There Are No Mature Markets
There Are No Mature Markets It’s An Attitude
Slide 58: How Will We Grow?
How Will We Grow? Have a Maniacal Approach to Market Share Growth in our Core Categories We must Broaden the Base of our Sales Pyramid – Organic Growth – Surround the Athlete – Support Categories
Slide 59: Basketball Backboards
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Slide 60: How Will We Grow?
How Will We Grow? Find New Opportunities for Growth – Internal Categories – Acquisitions
Slide 61: Acquisitions
Acquisitions Purchased Premium/Specialist Brands – DeMarini – Atec With our resources, we can grow/develop these businesses
Slide 62: DeMarini - Old
Al DeMarini - Old AMER SPORTS USA sic kare mae
Slide 63: DeMarini - New
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Slide 64: Atec
Atec Pitching Machines Backstop At Home Training
Slide 65: U.S. Growth
U.S. Growth Still share growth opportunities in United States – Product Perspective Bats Ball Gloves Uniforms Soccer > Innovation Industrial Design Atec – Customer Perspective Consolidating market creates opportunity Strength operationally/brands
Slide 66: International Momentum
International Momentum USA 143% Market Development vs 1999 Eur 184% Japan 432% Asia 191% 450% Aust 227% Can 196% 400% Lat 171% USA 350% Europe In d e x v s 1999 300% Japan 250% Asia 200% Australia Canada 150% Lat Amer 100% 50% 1999 2000 2001 2002 2003 2004
Slide 67: International Growth
International Growth International growth is critical to future – Japan Bats/Ball Gloves – Basketballs in all markets – Latin America Soccer
Slide 68: Our Focus For Continued Success
Our Focus For Continued Success Intelligence and Knowledge is Superior – Consumer – Customer Low Cost Position – Product Costs – Effective Spending Product Innovation - At All Price Points Brand Has Relationship With Key Customers Specialist/Operational Excellence