Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (2010)
29 slides from Amer Sports's investor day presentation, 2010
Slide 1: Reigniting profitable growth
Reigniting profitable growth Heikki Takala President and CEO 1
Slide 2: 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 uncertain
Slide 3: Agenda
Agenda • Brief introduction and background • Financial performance in a nutshell • New financial targets • Group development priorities: cornerstones • Phasing of Group development in the coming years • Summary • First round of Q&A • Finance overview • Business Segment / Area presentations 3
Slide 4: Amer Sports in brief
Amer Sports in brief Net sales by business (2009) • Revenue EUR ~1.5 billion (2009) Winter Sports Equipment • One of the leading sports equipment Apparel and Footwear 4% companies in the world 6% 7% 24% Racquet Sports – #1 or #2 in many sports equipment categories Fitness 12 % • Strong brand portfol
Slide 5: Financial performance in 2005-2009
Financial performance in 2005-2009 • Lack of growth • Profitability below targets • Balance sheet strengthened in 2009 5
Slide 6: Current year – improvement under way
Current year – improvement under way • Clear improvement in H1/2010 compared to H1/2009 • Net sales EUR 690.1 million (640.0), +5% in local currencies – Sales up particularly in Apparel and Footwear, Team Sports and Golf – EMEA and APAC both +9% • EBIT EUR -7.4 million (-36.3), up 28.9 million – Hig
Slide 7: Time to reignite profitable growth
Time to reignite profitable growth 1. Current year lays the foundation to build on 2. Glide paths and building blocks in place for Top line and Bottom line growth 7
Slide 8: New financial targets to drive profitable growth
New financial targets to drive profitable growth • Targets aligned with the strategy • Increased focus on cash flow and balance sheet structure • Drive both profitable and cash flow effective growth 8
Slide 9: New long-term financial targets
New long-term financial targets Year end net debt / EBITDA Growth Delivering organic, currency-neutral ratio of 3 or less. annual growth of 5%. Capital Dividend and share price Profitability structure performance EBIT of at least 10% of net sales Annual free cash flow equal to net profit. Cash flow
Slide 10: Towards big brands, big categories, big countries
Towards big brands, big categories, big countries Group development priorities • Clear portfolio roles and synergies, integrated company • Grow faster in softgoods • Win with consumers • Win in go-to-market • Operational excellence 10
Slide 11: Clear portfolio roles and synergies, integrated company
Clear portfolio roles and synergies, integrated company 11
Slide 12: Every part of the Group has a clear role, targets and action plan
Every part of the Group has a clear role, targets and action plan Business area Objective Actions • Expanding commercial footprint Apparel and Footwear Further accelerating growth • Entering new segments and categories • Category based operation Winter Sports To sustainable profitability, • Operatio
Slide 13: Driving scale and synergy
Driving scale and synergy • Most synergies in Ball Sports, Apparel and Footwear and Winter Sports Equipment – Sporting goods retail, Asian sourcing, softgoods, go-to-market – R&D, marketing, manufacturing • Distinct characteristics in Precor, Mavic and Suunto – Distinct customers, channels, producti
Slide 14: Pragmatic approach to synergies
Pragmatic approach to synergies Synergistic businesses Portfolio A&FW, Ball Sports, WSE businesses Sales & Channel / regions & countries Supply chain and enabling functions Full scale & synergy drive in the Group’s First focus on improving integration and platform development efforts, profitability;
Slide 15: Focus on profitable organic growth
Focus on profitable organic growth • Every business has to deliver the assigned targets • Focus on internal improvement and organic growth • Acquisitions/divestments remain in the toolbox • Capabilities, technologies etc. for accelerated growth • Solutions for underperforming businesses 15
Slide 16: Grow faster in softgoods
Grow faster in softgoods 16
Slide 17: Big growth potential in softgoods
Big growth potential in softgoods • Overall an attractive, growing Apparel and Footwear net sales market 2006−H1/2010 350 • We have a track record in Apparel 300 and Footwear 250 • We can accelerate growth of our 200 H2 brands with softgoods: Salomon, 150 H1 Arc’teryx, Wilson 100 50 • Other brands o
Slide 18: Organizing for softgoods growth
Organizing for softgoods growth • Move to category based development across brands to build scale – R&D, product line management, sourcing & manufacturing • Strengthen resources and capabilities significantly 18
Slide 19: Win with consumers
Win with consumers 19
Slide 20: Win with consumers
Win with consumers • Set up regional Consumer Operations to better understand and deliver against local consumer needs • Build a Group level Marketing Function for systematic consumer understanding and Brand Management capabilities
Slide 21: Win in go-to-market
Win• Win in with go-to-market consumers Win with consumers 21
Slide 22: Build winning commercial fundamentals
Build winning commercial fundamentals • Increase commercial footprint: number and quality of doors – Major distribution / scale opportunities, already with current products – Consumer understanding and locally adapted products increase potential further – Deeper collaboration with customers – Clearl
Slide 23: Operational excellence
‘ Operational “excellence ae
Slide 24: Systematic improvement every day
Systematic improvement every day • Gross margin development – Gross profit percentage up by 4 points H1/2010 vs. H1/2009 • Progress in supply chain development – Customer service improvement – Further DSI efficiency – Leveraging scale in logistics, IT and sourcing • Functional excellence with clear
Slide 25: Major operational intervention in Winter Sports Equipment
Major operational intervention in Winter Sports Equipment • Objective: reduce weather dependency by significantly lowering the break-even point • Focus program, covering all elements of the value chain: R&D, operations, supply, logistics 25
Slide 26: Phasing of Group development
Phasing of Group development 26
Slide 27: Prioritized, sequenced program
Prioritized, sequenced program Profitability, growth acceleration Build critical capabilities, allocate resources and ~2013- reignite growth • Continued growth in Clarify future direction & ~2011...2012 categories and countries deliver the year • Big brands, • Build capabilities: big countries, ~201
Slide 28: Summary
Summary 28
Slide 29: Towards big brands, big categories, big countries
Towards big brands, big categories, big countries • We have clear portfolio roles and approach to synergies • We will further accelerate growth in softgoods • We are organizing for better consumer understanding • We will build our commercial fundamentals to win in go-to-market • We continue driving