Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (2010)
29 slides from Amer Sports's investor day presentation, 2010
Slide 1: Winter Sports Equipment: To sustainable profitability
Winter Sports Equipment To sustainable profitability Michael Schineis, President 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: Winter Sports Equipment
Winter Sports Equipment MEUR Net Sales • Salomon and Atomic winter 450 sports equipment are among the 400 350 world’s most recognized winter 300 sports brands. The brands 250 347.7 324.5 323.3 complement each other in terms 200 150 of their product offerings and 100 main markets. 50 54.4 52.5 46.5 4
Slide 4: Global market volume 2009/10
Winter Sports Equipment Global market volume 2009/10 Alpine Snowboard Nordic 940M€ 320 M€ 180 M€ Alpine business ≅ 3 times Snowboard business ≅ 5 times Nordic business 4 * Source: Management estimate
Slide 5: Global market volume 2009/10 – by segment
Winter Sports Equipment Global market volume 2009/10 – by segment Alpine Boots 330M€ Boots Boards 100M€ Boots 135M€ XC Skis 64M€ Alpine 91M€ Skis&Bdg Bdg Bdgs 610M€ 25M€ 85M€ Alpine business ~ 70% set business 5 * Source: Management estimate
Slide 6: Participation: People continue to ski
Participation: People continue to ski Skier days (daily skipass) in millions Alpine Skiing 400 350 300 250 200 150 100 50 0 6 * Source: National Ropeway Associations / Internet researches
Slide 7: We are undisputed leader in our industry
We are undisputed leader in our industry With gross sales of over 400 MEUR we are undisputed leader in our industry MEUR 450 30 % 2010 386 400 28 % 25 % 350 WS Gross Sales M-EUR Value MS % 300 20 % 250 208 207 200 15 % 15 % 170 15 % 150 150 12 % 120 11 % 108 100 10 % 10 % 8% 50 - 5% Amer Jarden Ross
Slide 8: Market evolution and Amer Sports actions
Market evolution and Amer Sports actions 2 000 1 910 Total Winter Sports Equipment market value in MEUR 1 684 -12% 1 415 1 500 MEUR 1 395 1 400 -16% -1% +1% 1 000 500 05/06 06/07 07/08 08/09 09/10 10/11 • Downsizing • Stabilizing • Continue to capacity Industrial gain market 2005/06/07 2006/07 Opera
Slide 9: Outlook for 2010 is encouraging
Outlook for 2010 is encouraging • Prebookings up bx 15% (in LC) passing the 400 MEUR level • Profitability improvement thanks to higher gross margins and tight opex control • Significant improvement of DSI • The strongest growth, an increase of approximately 32%, was recorded in cross country skiing
Slide 10: Group development priorities
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: Win with consumers and go-to-market
Win with consumers and go-to-market 11
Slide 12: Gaining market shares
Gaining market shares • We continue to invest in our brands • Sportsmarketing – working with the highest level of athletes • Trendsetting products in design and technology • Using modern technologies to interact with our consumers 12
Slide 13: Salomon: global market leader in ski boots
• Global market leader in ski boots • Trendsetting brand in the Freeski market • #3 brand in snowboarding • Over 1 Mio pairs of alpine bindings (shared concept with Atomic) • #2 brand in XC skiing with a strong market leadership in XC boots • Helmets are showing profitable growth 13
Slide 14: Atomic: global market leader in alpine skis
• Global market leader in alpine skis • Gaining significant market shares in ski boots (doubling the business in the last 3 years) • Recovering in XC business (shooting for #3 globally) • Niche player in snowboarding (Europe, Backcountry, Rental) 14
Slide 15: Sportsmarketing
Sportsmarketing SCHILD RAICH CARLSON ABMA 14x ZACKRISSON JANKA MATT NEUREUTHER GUAY DAVID 15
Slide 16: Gaining market shares by trendsetting products
Gaining market shares by trendsetting products Our market is rewarding innovations Ski boots 1st year QUEST Â 45,000 pairs 1st year LIVE FIT Â 60,000 pairs in a total market with 3.6 million pairs 16
Slide 17: Using modern technologies
Using modern technologies ATOMIC MOBILE CHANNEL (Launch winter seaoson 2010/11)
Slide 18: Further growth will come from helmet, accessories and protective
Further growth will come from helmet, accessories and protective Alpine Snowboard Protectives Nordic 940M€ 320 M€ 285 M€ 180 M€ Protective almost as big as Snowboarding 18
Slide 19: Further growth will come from helmet, accessories and protective
Further growth will come from helmet, accessories and protective 400 000 Helmets * 350 000 300 000 250 000 Units 200 000 150 000 100 000 50 000 0 2006 2007 2008 2009 Outlook 2010 Accelerate growth in helmets • Increase number of doors • New technologies („Custom Air“) • Sportsmarketing • Launch the
Slide 20: Operational excellence
‘ Operational ==: &xcellence
Slide 21: Market evolution and Amer Sports actions
Market evolution and Amer Sports actions 2 000 1 910 Total Winter Sports Equipment market value in MEUR 1 684 -12% 1 415 1 500 MEUR 1 395 1 400 -16% -1% +1% 1 000 500 05/06 06/07 07/08 08/09 09/10 10/11 • Downsizing • Stabilizing • Continue to capacity Industrial gain market 2005/06/07 2006/07 Opera
Slide 22: A holistic program covering all elements of our value chain
A holistic program covering all elements of our value chain from R&D, over operations to supply and logistics • to improve gross margins • to push down our break even point • to improve our capability to master poor snow / good snow winters • to improve quality and customer service 29 projects follo
Slide 23: Highlights
Highlights Increase production flexibility to produce close to order and to minimize inventory risk This goes hand in hand by reducing our industrial lead times significantly since 2007 (e.g. alpine bindings from 14 in 2007 to 9 weeks in 2010) 23 e.g. Atomic business
Slide 24: Highlights
Highlights • Shifting production capacity from Austria to Bulgaria for low and mid price alpine and XC skis 24
Slide 25: Highlights
Highlights • In-lining of production equipment (mainly Altenmarkt plant and Bulgarian plant) On/Off cart 36 times; planning complexity On/Off cart <10 times; material flow
Slide 26: Highlights
Highlights Increase standardization of raw materials up to 50% • Inside Salomon and Atomic brand to reduce complexity • Across Salomon and Atomic brand to accelerate economies of scale 26
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Slide 28: Standardization
Standardization … to Today 28
Slide 29: Summary
Summary • Improving our operational excellence and pushing down our break-even point is our priority • We continue to invest in our brands • Innovative products and marketing programs will help us to gain market shares • We see further growth potential in new activities like helmets, goggles, etc. 2