Amer Sports, Inc. · NYSE:AS
Amer Sports — Q1 2003 Earnings Presentation
25 slides from Amer Sports's earnings presentation, Apr 29, 2003
Slide 1: Interim Report January - March 2003
Interim Report January - March 2003 April 29, 2003
Slide 2: Highlights
Highlights § Operating profit at last year’s level § Net sales and profitability affected by the strong euro § Fitness and Team developed positively § Golf remains challenging
Slide 3: Re-organising Wilson in the USA
Re-organising Wilson in the USA § Wilson Corporate functions to be discontinued § Racquet and Golf – Steve Millea § Team Sports – Chris Considine
Slide 4: January - March key indicators
January - March key indicators Q1/03 Q1/02 FY 2002 Net sales (MEUR) 283.9 289.4 1,101.9 EBIT(MEUR) 15.3 15.3 103.0 EBT (MEUR) 13.1 14.7 95.6 EPS (EUR) 0.39 0.46 2.95
Slide 5: Financial Review
Financial Review Pekka Paalanne CFO
Slide 6: Profit and loss statement
Profit and loss statement Q1/03 Q1/02 Ch% FY 2002 Net sales 283.9 289.4 -2 1,101.9 EBIT 15.3 15.3 103.0 Net financials -2.2 -0.6 -7.4 EBT 13.1 14.7 -11 95.6 Taxes -3.9 -4.1 -26.5 Net profit 9.1 10.6 68.5 ROCE % *) 17.9 17.5 18.3 *) Rolling 12 months
Slide 7: Breakdown of net sales
Breakdown of net sales Ch% in local Q1/03 Q1/02 Ch% currencies FY2002 Racquet 56.9 73.8 -23 -10 243.9 Golf 42.6 66.2 -36 -25 213.3 Team 63.1 72.0 -12 7 203.9 Winter Sports 26.0 31.1 -16 -12 201.6 Fitness Equipment 51.4 - 39.5 Sports Instruments 20.1 21.5 -7 - 85.3 Tobacco 23.8 24.8 -4 -4 114.4 Total
Slide 8: Geographic breakdown of net sales
Geographic breakdown of net sales Ch% in local Q1/03 Q1/02 currencies FY2002 North America 166.2 168.9 19 558.5 Europe 87.7 88.1 2 405.5 Japan 12.8 13.6 2 56.2 Asia Pacific 8.6 9.2 8 34.8 Other 8.6 9.6 15 46.9 Total 283.9 289.4 12 1,101.9
Slide 9: Breakdown of EBIT
Breakdown of EBIT Q1/03 Q1/02 FY2002 Racquet 3.8 6.3 25.6 Golf -2.1 -0.1 7.1 Team 10.9 11.7 24.0 Winter Sports -3.6 -1.5 39.6 Fitness Equipment 8.9 - 6.3 Sports Instruments 2.2 1.6 10.5 Tobacco 1.5 1.7 9.2 HQ -2.5 -2.1 -9.2 Group goodwill -3.8 -2.3 -10.1 Total 15.3 15.3 103.0
Slide 10: Balance sheet
Balance sheet 31 March 2003 31 March 2002 31 Dec 2002 Goodwill 300.2 207.5 312.1 Fixed assets 191.9 222.7 197.7 Inventories 156.5 162.2 156.4 Receivables 274.1 292.0 308.2 Cash 28.6 33.7 33.1 Equity 443.1 454.6 473.4 Int. bearing debt 230.1 139.8 243.0 - Long term 65.3 71.2 48.2 - Short term 164.8 6
Slide 11: Equity ratio and gearing, %
Equity ratio and gearing, % 60 50 40 Eq ratio 30 Gearing 20 10 0 II/00 III/00 IV/00 I/01 II/01 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03 Q1/03 Q1/02 FY2002 EqRatio % 45.1 48.1 45.6 Gearing % 48 25 47
Slide 12: Divisional highlights
Divisional highlights Roger Talermo President & CEO
Slide 13: Racquet Sports
Racquet Sports § Slow start for the year § Tennis racquet sales declined 15% § Tennis ball sales declined 12% § New products: Triad, Pro Staff, Series H, footwear Ch% in local MEUR Q1/03 Q1/02 Ch% currencies Net sales 56.9 73.8 -23 -10 EBIT 3.8 6.3 -40 -31
Slide 14: Golf
Golf § Golf sales well below target § Club sales declined 20% § Golf ball sales down 33% – Tough competition continues § Q2 sell through important to annual sales § New products: Deep Red II, Jack, Staff True Ch% in local MEUR Q1/03 Q1/02 Ch% currencies Net sales 42.6 66.2 -36 -25 EBIT -2.1 -0.1
Slide 15: Team Sports
Team Sports § Basketball sales up 16%, baseball and softball bat sales up 11% § NCAA match ball agreement – NCAA Composite Basketball § Youth batting helmet – ”New product of the year” (Business Week / USA Today) Ch% in local MEUR Q1/03 Q1/02 Ch% currencies Net sales 63.1 72.0 -12 +7 EBIT 10.9 11.7
Slide 16: Winter Sports
Winter Sports § Lower re-order level in Q1 in Austria and Germany § Advance orders expected to be more cautious § Neox EBM 412: first binding with electronic management § Record success in racing § Investment in sales organisation Ch% in local MEUR Q1/03 Q1/02 Ch% currencies Net sales 26.0 31.1 -16
Slide 17: Fitness equipment
Fitness equipment § Growth in treadmills and elliptical cross-trainers § Integration proceeding well § Growth opportunities outside North America § New stationary cycles: C846 and C842 § US market outlook cautious Ch% in local MEUR Q1/03 Q1/02* Ch% currencies Net sales 51.4 54.9 -6 +5 EBIT 8.9 7.7 +
Slide 18: Sports Instruments
Sports Instruments § Wristop computers and diving instruments sales at last year’s level (56% of net sales) § Decline in non-core products § Suunto M9 deliveries started Ch% in local MEUR Q1/03 Q1/02 Ch% currencies Net sales 20.1 21.5 -7 - EBIT 2.2 1.6 +38 +44
Slide 19: Tobacco
Tobacco § Finnish tobacco market declined § Market shifting to low price segment § Sales outside Finland increased Q1/03 Q1/02 Ch% Net sales 23.8 24.8 -4 EBIT 1.5 1.7 -12
Slide 20: Outlook for full year 2003
Outlook for full year 2003 § Market environment will remain challenging § Strong cashflow and balance sheet § Net sales expected to grow in 2003, EBIT to decline modestly § Amer Sports is balanced by its wide portfolio of sports and geographical diversity
Slide 21: 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 22: Net sales, rolling 12 months (MEUR)
Net sales, rolling 12 months (MEUR) 1250 1105,7 1123,9 1099,8 1113 1101 1080,3 1101,9 1096,4 1000 750 500 250 0 II/01 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03
Slide 23: EBIT, rolling 12 months (MEUR)
EBIT, rolling 12 months (MEUR) 120 101,6 99,8 98,6 99,5 103 103 100 89,2 94,2 80 60 40 20 0 II/01 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03
Slide 24: EPS, rolling 12 months (EUR)
EPS, rolling 12 months (EUR) 3,5 2,91 2,87 2,9 3,01 2,95 2,88 3 2,65 2,73 2,5 2 1,5 1 0,5 0 II/01 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03
Slide 25: ROCE, rolling 12 months (%)
ROCE, rolling 12 months (%) 20 18,3 17,5 17,5 17,9 16,9 16,8 17 16,1 16 12 8 4 0 II/01 III/01 IV/01 I/02 II/02 III/02 IV/02 I/03