Slide 1: Interim Report January - March 2004
Interim Report January - March 2004 April 28, 2004 Highlights The year has started positively for the sports equipment market Amer Group’s year started exceptionally well – Net sales in local currencies +14% – Deliveries earlier than Q1/2003 EBIT up significantly – EUR 18 million gain in EBIT
Slide 2: Key indicators
Key indicators Q1/04 Q1/03 2003 Net sales (MEUR) 293.4 281.2 1,094.1 EBIT(MEUR) 46.7 20.6 117.7 EPS (EUR) 1.30 0.56 3.35 Financial Review Pekka Paalanne CFO 2
Slide 3: Transition to IFRS
Transition to IFRS Transition to IFRS Applied as of Q1/2004 reporting – Comparative figures prepared for 2003 Goodwill amortization replaced with impairment tests – Improves 2003’s EBIT by 16.5 MEUR Other P&L adjustments include – Pension costs – Finance expenses – Taxes 3
Slide 4: Transition to IFRS cont.
Transition to IFRS cont. One-off transitional valuation adjustments weaken the equity ratio slightly Hedge accounting applied for operating cash flows Income statement format changed Segment reporting – Business segments as before – Geographical segments: Americas (incl. Latin America), EMEA
Slide 5: Profit and loss statement; Breakdown of net sales
Profit and loss statement Q1/04 Q1/03 Ch% 2003 Net sales 293.4 281.2 4 1,094.1 EBIT 46.7 20.6 117.7 Net financials -1.6 -2.2 -8.2 EBT 45.1 18.4 109.5 Taxes -14.4 -5.2 -31.0 Net result 30.6 13.1 78.1 ROCE % *) 25.9 19.3 21.0 *) Rolling 12 months Breakdown of net sales Ch% in local Q1/04 Q1/03 Ch% cur
Slide 6: Geographic breakdown of net sales; Breakdown of EBIT
Geographic breakdown of net sales Ch% in local Ch% currencies Q1/04 Q1/03 2003 Americas 174.5 168.3 4 19 573.2 EMEA 94.3 88.7 6 7 417.8 Asia 24.6 24.2 2 7 103.1 Total 293.4 281.2 4 14 1,094.1 Breakdown of EBIT Q1/04 Q1/03 2003 Racquet Sports 7.2 3.9 20.6 Golf 3.2 -1.2 -12.4 Team Sports 12.3 11.4 23.
Slide 7: Balance sheet; Equity ratio and gearing
Balance sheet 31 Mar 2004 31 Mar 2003 31 Dec 2003 Goodwill 304.1 296.0 275.1 Fixed assets 138.0 161.2 139.4 Inventories 132.5 156.5 136.9 Receivables 290.5 266.1 293.6 Cash 28.0 28.6 27.1 Equity 429.6 383.0 423.4 Int. bearing debt 152.6 230.1 167.7 - Long term 32.8 65.3 32.2 - Short term 119.8 164.8
Slide 8: Divisional highlights: Racquet Sports
Divisional highlights Roger Talermo President & CEO Racquet Sports Upswing started in Q3/03 continued – Tennis rackets +8%, especially within the high-end segment – Tennis balls +19% – Footwear +5% Global launch of a new product line in May Ch% in local MEUR Q1/04 Q1/03 Ch% currencies Net sales
Slide 9: Golf and Team Sports
Golf Main goal in 2004: profitability Net sales and EBIT on track – Deliveries proceeding according to plan – Sales of golf clubs +23%, sales of golf balls +14% EBIT positive – Reorganization of Wilson – Decline in average selling prices Ch% in local MEUR Q1/04 Q1/03 Ch% currencies Net sales 4
Slide 10: Winter Sports and Fitness Equipment
Winter Sports Sales of alpine skis +11% – Average market selling prices declined Investments in the distribution network Pre-orders in volume terms proceeding according to plan A successful season 2003/2004 for Atomic athletes New products for 2004/2005: Metron, Neox, Volant Ch% in local M
Slide 11: Sports Instruments
Sports Instruments Sales of wristop computers +9% Sales of diving instruments +2% Declining non-core sales New products: n3, X9, G3, t6 Ch% in local MEUR Q1/04 Q1/03 Ch% currencies Net sales 18.8 20.1 -6 -4 EBIT 1.8 2.2 -18 n3 X9 t6 11
Slide 12: Withdrawal from tobacco business; Outlook
Withdrawal from tobacco business Consideration received from Philip Morris EUR 29 million – Benefited Amer’s Q1 EBIT by EUR 18 million Amer Tobacco’s right to produce and sell Philip Morris cigarettes in Finland ended on 26 March 2004 Q1/04 Q1/03 Ch% Net sales 21.8 23.8 -8 EBIT 0.9 1.5 Outlook
Slide 13: Target: To be the no. 1 sports equipment company in the world
Target: To be the no. 1 sports equipment company in the world 13