Amer Sports, Inc. · NYSE:AS
Amer Sports — H1 2003 Earnings Presentation
27 slides from Amer Sports's earnings presentation, Aug 5, 2003
Slide 1: Interim Report January - June 2003
Interim Report January - June 2003 August 5, 2003
Slide 2: Highlights
Highlights § 2003 is providing to be a tough year for the sporting goods industry § Amer Sports’ progress is at least on a par with the market, with the exception of Golf – Wilson re-organisation started § 2003 net sales expected to be similar to 2002’s, EBIT around EUR 70-80 million
Slide 3: January - June key indicators
January - June key indicators H1/03 H1/02 FY 2002 Net sales (MEUR) 535.7 552.2 1,101.9 EBIT(MEUR) 24.8 38.5 103.0 EBT (MEUR) 20.7 35.5 95.6 EPS (EUR) 0.61 1.10 2.95
Slide 4: Financial Review
Financial Review Pekka Paalanne CFO
Slide 5: Profit and loss statement January-June 2003
Profit and loss statement January-June 2003 H1/03 H1/02 Ch% FY 2002 Net sales 535.7 552.2 -3 1,101.9 EBIT 24.8 38.5 -36 103.0 Net financials -4.1 -3.0 -7.4 EBT 20.7 35.5 -42 95.6 Taxes -6.2 -10.0 -26.5 Net profit 14.3 25.5 -44 68.5 ROCE % *) 15.2 16.1 18.3 *) Rolling 12 months
Slide 6: Profit and loss statement April-June 2003
Profit and loss statement April-June 2003 Q2/03 Q2/02 Ch% FY 2002 Net sales 251.8 262.8 -4 1,101.9 EBIT 9.5 23.2 -59 103.0 Net financials -1.9 -2.4 -7.4 EBT 7.6 20.8 -63 95.6 Taxes -2.3 -5.9 -26.5 Net profit 5.2 14.9 -65 68.5
Slide 7: Breakdown of net sales January-June 2003
Breakdown of net sales January-June 2003 Ch% in local H1/03 H1/02 Ch% currencies FY2002 Racquet 115.6 144.4 -20 -6 243.9 Golf 103.7 145.6 -29 -17 213.3 Team 104.6 120.6 -13 6 203.9 Winter Sports 33.2 42.4 -22 -18 201.6 Fitness Equipment 85.8 - - - 39.5 Sports Instruments 39.5 44.1 -10 -5 85.3 Tobacc
Slide 8: Geographic breakdown of net sales
Geographic breakdown of net sales Ch% in local H1/03 H1/02 currencies FY2002 North America 309.4 313.3 20 558.5 Europe 168.4 170.7 1 405.5 Japan 23.8 30.6 -15 56.2 Asia Pacific 16.7 17.9 10 34.8 Other 17.4 19.7 11 46.9 Total 535.7 552.2 11 1,101.9
Slide 9: Breakdown of net sales April-June 2003
Breakdown of net sales April-June 2003 Ch% in local Q2/03 Q2/02 Ch% currencies FY2002 Racquet 58.7 70.6 -17 -2 243.9 Golf 61.1 79.4 -23 -10 213.3 Team 41.5 48.6 -15 5 203.9 Winter Sports 7.2 11.3 -36 -35 201.6 Fitness Equipment 34.4 - - - 39.5 Sports Instruments 19.4 22.6 -14 -9 85.3 Tobacco 29.5 30
Slide 10: Breakdown of EBIT January-June 2003
Breakdown of EBIT January-June 2003 H1/03 H1/02 FY2002 Racquet 10.7 15.8 25.6 Golf 2.3 12.8 7.1 Team 14.9 18.3 24.0 Winter Sports -12.6 -8.3 39.6 Fitness Equipment 11.8 - 6.3 Sports Instruments 4.0 4.7 10.5 Tobacco 4.7 5.0 9.2 HQ -3.5 -5.2 -9.2 Group goodwill -7.5 -4.6 -10.1 Total 24.8 38.5 103.0
Slide 11: Breakdown of EBIT April-June 2003
Breakdown of EBIT April-June 2003 Q2/03 Q2/02 FY2002 Racquet 6.9 9.5 25.6 Golf 4.4 12.9 7.1 Team 4.0 6.6 24.0 Winter Sports -9.0 -6.8 39.6 Fitness Equipment 2.9 - 6.3 Sports Instruments 1.8 3.1 10.5 Tobacco 3.2 3.3 9.2 HQ -1.0 -3.1 -9.2 Group goodwill -3.7 -2.3 -10.1 Total 9.5 23.2 103.0
Slide 12: Balance sheet
Balance sheet 30 June 2003 30 June 2002 31 Dec 2002 Goodwill 286.9 183.4 312.1 Fixed assets 184.2 214.0 197.7 Inventories 171.6 167.8 156.4 Receivables 255.8 248.0 308.2 Cash 23.1 21.0 33.1 Equity 442.7 453.4 473.4 Int. bearing debt 216.8 108.4 243.0 - Long term 63.4 57.0 48.2 - Short term 153.4 51.
Slide 13: Equity ratio and gearing, %
Equity ratio and gearing, % 60 50 40 Eq ratio 30 Gearing 20 10 0 III/00 IV/00 I/01 II/01 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03 II/03 H1/03 H1/02 FY2002 EqRatio % 46.6 52.8 45.6 Gearing % 46 20 47
Slide 14: Divisional highlights
Divisional highlights Roger Talermo President & CEO
Slide 15: Racquet Sports
Racquet Sports § Slow sales in H1 – Tennis racquet sales declined 10% – Tennis ball sales declined 4% § New products: Triad, Pro Staff, Series H, footwear § Venus & Serena Williams re-signed with Wilson Ch% in local MEUR H1/03 H1/02 Ch% currencies Net sales 115.6 144.4 -20 -6 EBIT 10.7 15.8 -32 -19
Slide 16: Golf
Golf § Golf sales clearly below target § Club sales declined 16% § Golf ball sales down 25% – Tough competition continues § Wilson re-organisation lowering costs in 2004 Ch% in local MEUR H1/03 H1/02 Ch% currencies Net sales 103.7 145.6 -29 -17 EBIT 2.3 12.8 -82 -80
Slide 17: Team Sports
Team Sports § Basketball sales up 13% – NCAA match ball agreement – NCAA Composite Basketball § Baseball and softball bat sales up 23% – Product line extension into youth baseball market § Youth Batting Helmet – ”New product of the year” (Business Week / USA Today) Ch% in local MEUR H1/03 H1/02 Ch%
Slide 18: Winter Sports
Winter Sports § Focus on producing next season’s lines – Deliveries in September-October § Pre-orders close to last year’s level § Neox EBM 412: first binding with electronic management § Investment in sales organisation Ch% in local MEUR H1/03 H1/02 Ch% currencies Net sales 33.2 42.4 -22 -18 EBIT -
Slide 19: Fitness equipment
Fitness equipment § Growth in treadmills and cycles § Integration proceeding well § US market outlook cautious § Growth opportunities outside the USA – New office in Tokyo Ch% in local MEUR H1/03 H1/02* Ch% currencies Net sales 85.8 100.7 -15 -2 EBIT 11.8 14.0 -16 -1 *pro forma
Slide 20: Sports Instruments
Sports Instruments § Sales of wristop computers up 6% § Diving instruments sales declined by 17% – Global diving market down § Suunto X3hr being launched in September § Suunto n3 to the market Q4/2003 § Suunto X6hr: Gear of the year / Buyer’s guide 2003 Ch% in local MEUR H1/03 H1/02 Ch% currencies N
Slide 21: Tobacco
Tobacco § Finnish tobacco market declined § Market shifting to low price segment § Sales outside Finland increased H1/03 H1/02 Ch% Net sales 53.3 55.1 -3 EBIT 4.7 5.0 -6
Slide 22: Outlook for full year 2003
Outlook for full year 2003 § Market conditions expected to remain challenging § Net sales expected to be similar to 2002’s, operating profit around EUR 70-80 million § Wilson re-organisation will help deliver EUR 10m of savings next year § Amer Sports is balanced by its wide portfolio of sports and
Slide 23: Target: To be the no. 1 sports equipment company in the world
Target: To be the no. 1 sports equipment company in the world
Slide 24: Net sales, rolling 12 months (MEUR)
Net sales, rolling 12 months (MEUR) 1250 1123,9 1099,8 1113 1101 1080,3 1101,9 1096,4 1085,4 1000 750 500 250 0 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03 II/03
Slide 25: EBIT, rolling 12 months (MEUR)
EBIT, rolling 12 months (MEUR) 120 99,8 98,6 99,5 103 103 100 89,2 94,2 89,3 80 60 40 20 0 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03 II/03
Slide 26: EPS, rolling 12 months (EUR)
EPS, rolling 12 months (EUR) 3,5 2,9 3,01 2,95 2,88 3 2,87 2,65 2,73 2,46 2,5 2 1,5 1 0,5 0 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03 II/03
Slide 27: ROCE, rolling 12 months (%)
ROCE, rolling 12 months (%) 20 18,3 17,5 17,5 17,9 16,8 17 16,1 16 15,2 12 8 4 0 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03 II/03