Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (August 2012)
13 slides from Amer Sports's investor day presentation, Aug 30, 2012
Slide 1: Reaching the half-way milestone on our strategic glidepath
Amer Sports CMD 2012 Agenda • Reaching the half-way milestone on our strategic glidepath / Heikki Takala • Towards the long-term financial targets / Jussi Siitonen • Winning in Go to Market: Case EMEA / Michael White • Business area presentations: - Apparel / Andy Towne - Footwear / Jean-Marc Pambet
Slide 2: Contents: Amer Sports today
Contents 1 Amer Sports today 1. 2. Recap from CMD 2010: Amer Sports strategy 3. Performance review 4. What What’s s working, what’s what s not 5. We continue moving 3 Amer Sports CMD 2012 AMER SPORTS TODAY 2
Slide 3: Amer Sports in brief
Amer Sports in brief Net sales by business (2011) 6% 25% • Revenue EUR ~2 billion 12% Winter Sports • One of the leading sporting goods 24% Equipment 6% 4% Footwear and outdoor companies in the world 12% 6% Apparel • Strong brand portfolio 25% 9% Cycling • ~ 30% softgoods, ~ 70% sports 15% 16% Sport
Slide 4: Towards big brands, big categories, big countries
Towards big brands, big categories, big countries Amer Sports’ five strategic priorities 1. Clear portfolio roles and synergies, integrated company 2. Faster growth in softgoods 3. Winning with Consumers 4. Winning in Go to Market 5. Operational excellence 7 Amer Sports CMD 2012 Our approach on scal
Slide 5: Long-term financial targets
Long-term financial targets Year end net debt / Growth Delivering organic organic, currency- currency EBITDA ratio of 3 or less. neutral annual growth of 5%. Capital Dividend and Profita- share price structure performance bility Annual free cash flow EBIT of at least 10% of net equal to net profit.
Slide 6: Performance review: where we are today
PERFORMANCE REVIEW Where we are today MEUR % 2500 10 2000 8 1500 6 H2 1000 4 H1 EBIT-% 500 2 0 0 2009 2010 2011 2012 guidance 12 Amer Sports CMD 2012 6
Slide 7: H1/2012 compared to H1/2011 and Outlook 2012
H1/2012 compared to H1/2011 • Net sales EUR 843.6 million (764.7), +6% in local currencies - Apparel +32%, Footwear +8%, Fitness +6%, Sports Instruments +12% - Geographically, EMEA +3%, Americas +5% and APAC +16% - Major retailer de-stocking in Europe impacted particularly Footwear - Russia +49%, Ch
Slide 8: All business areas are progressing
All business areas are progressing Business area Objective Actions Footwear Further accelerate growth Expand commercial footprint, enter new segments and categories, category-based operation ☻- Apparel Drive significant revenue growth Expand commercial footprint, enter new segments and categories, c
Slide 9: What's working, what's not
WHAT’S WORKING, WHAT’S NOT Good progress across the strategic priorities • Clear portfolio roles and synergies - All businesses progressing towards their targets - On-going consolidation and scale-up of operations • Faster growth in softgoods - First milestone of 500 MEUR reached, progressing toward
Slide 10: Key remaining challenges: Winter/Summer balance
Key remaining challenges 1. Winter/Summer balance: still high g winter bias 2. Softgoods capabilities still under development 3. Cost & complexity vs. scale & synergy 19 Amer Sports CMD 2012 1. Winter/Summer balance • H2 (fall/winter) represents ~60% of Amer Sports annual net sales - Apparel sales 7
Slide 11: Softgoods capabilities; cost and complexity vs. scale and synergy
2. Softgoods capabilities still under development • Capabilities now being installed for - Base layer and gear - Action sports - “White space” opportunities - Go to Market 21 Amer Sports CMD 2012 3. Cost & complexity vs. scale & synergy • Cost base too high - Strategic growth investments: benefits c
Slide 12: We continue moving: stay the course
WE CONTINUE MOVING Stay the course • We have invested into the new structure and capabilities, basics starting to be in place, evidenced by the results • Work remains: drive internal improvement and organic growth, whilst monitoring M&A opportunities • Specific focus areas: Winter/Summer balance, So
Slide 13: www.amersports.com
www.amersports.com 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