Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (2015)
29 slides from Amer Sports's investor day presentation, 2015
Slide 1: Accelerating toward 2020
Accelerating toward 2020 Amer Sports CMD 2015 // Heikki Takala, President & CEO
Slide 2: What we will do today
What we will do today • Confirm that our strategies are working • Present a new strategic glidepath and building blocks for acceleration toward 2020 • Provide logic for the new financial targets and demonstrate the attractiveness of the acceleration 2 Amer Sports CMD 2015
Slide 3: High level performance assessment
High level performance assessment
Slide 4: We have turned around the company
We have turned around the company Net Sales (EUR) EBIT Margin 2 800m 10.0 % 2 600m 8.0 % 2 400m 2 200m 6.0 % 2 000m 1 800m 4.0 % 1 600m 2.0 % • Balance sheet step- 1 400m changed (Net Debt / EBITDA 2x) 1 200m 0.0 % 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Net Sales EBIT Margin *Vara consen
Slide 5: Strategic building blocks: What has worked
Strategic building blocks: What has worked Achievement 2009 2015 Apparel & Footwear growth 300m x3 Arc'teryx growth x4 Sales x2 Salomon growth & transformation ~50% softgoods ~70% softgoods Winter Sports Equipment gross margin ~40% ~46% Sales x2 Suunto turnaround EBIT negative EBIT-% ~10 Sales x2 Pr
Slide 6: What has been challenging
What has been challenging • Winter Sports Equipment and Individual Ball Sports: both restructured, now solid progress • Russia and Latin America • Cash flow target not achieved due to high working capital • Small brands, small categories: Bonfire, Nikita – divested 6 Amer Sports CMD 2015
Slide 7: Conclusions
Conclusions 1. Our strategies are working – Core business is healthy – Acceleration has been on-going in selected growth areas 2. We are no longer a turn-around company – However, we treat any under-performing unit as such 3. We are well equipped for further acceleration 7 Amer Sports CMD 2015
Slide 8: We follow our Sustainable Growth Model
We follow our Sustainable Growth Model
Slide 9: Amer Sports Sustainable Growth Model (SGM)
Amer Sports Sustainable Growth Model (SGM) 1. Annual topline growth – Both organic and via strategic acquisitions 2. Annual profit improvement – Profit can come from growth or through cost cutting. We prefer growth with cost discipline. 3. Investing for the future – To sustain future growth, we inve
Slide 10: Amer Sports portfolio logic
Amer Sports portfolio logic • Amer Sports is – A balanced sports equipment and apparel & footwear company, with a unique model of leveraging our authentic brands – An integrated company: portfolio composition is determined by synergies and Amer Sports being the “right owner”: Every part of the Group
Slide 11: Now we accelerate
Now we accelerate Lisi ee
Slide 12: Toward 2020
Toward 2020 • 2010 glidepath at 5% growth rate until 2020 would take us to – EUR ~3 billion sales like for like – 10% EBIT margin • However, we now focus on acceleration – Platforms and capabilities largely in place, scaling up provides attractive returns – Keeping momentum in the “core”, accelerati
Slide 13: We have chosen 5 acceleration areas
We have chosen 5 acceleration areas Topic 2009 Glidepath to 2015/16 Acceleration to 2020 1. Apparel & Footwear € 300 m € ~1000 m € ~1500 m 2. USA $ 700 m $ ~1000 m $ ~1500 m 3. China € 13 m € ~100 m € ~200 m 4. B2C € 20 m € ~200 m € ~400+ m 5. Connected Devices & € 0m € ~300 m € ~600+ m Services Net
Slide 14: Apparel and Footwear: Toward EUR 1.5 billion
Apparel and Footwear: Toward EUR 1.5 billion Why this choice: • Market attractive, two strong brands in the portfolio, repeatable model built Building blocks: • Arc’teryx in full acceleration across consumer segments and channels • Salomon – Footwear: global expansion, new consumer segments – Appare
Slide 15: Arc'teryx: In full acceleration
Arc’teryx: In full acceleration 15 Amer Sports CMD 2015
Slide 16: Salomon: Growing in and from the core
Salomon: Growing in and from the core 16 Amer Sports CMD 2015
Slide 17: Wilson & Mavic: Adding more
Wilson & Mavic: Adding more 17 Amer Sports CMD 2015
Slide 18: USA: Toward USD 1.5 billion
USA: Toward USD 1.5 billion Why this choice: • World’s largest market, dynamic, Amer Sports scalable model in place Building blocks: • Apparel and Footwear • Focused Ball Sports acceleration, especially Baseball • Acceleration in Fitness • New scalable Go to Market model, including B2C 18 Amer Sport
Slide 19: China: Toward 200 MEUR
China: Toward 200 MEUR Why this choice: • Dynamic, growing sports and outdoor market; Amer Sports’ capability built; profitable business model Building blocks: • Disproportionate growth in Apparel, Footwear, Sports Instruments and Fitness • Disciplined expansion in key cities • Own retail and e-comm
Slide 20: B2C: Toward 400+ MEUR
B2C: Toward 400+ MEUR Why this choice: • High growth, higher margin, proven business model Building blocks: • Own retail: 260+ stores, annual net opening of 20+ stores • E-commerce: 60+ stores with on-going expansion, driving traffic and conversion through Amer Sports Digital Ecosystem • Apparel and
Slide 21: Examples of Arc'teryx store expansion in H2
Examples of Arc’teryx store expansion in H2 LONDON Piccadilly NYC Soho SHANGHAI Hong Kong Square 21 Amer Sports CMD 2015
Slide 22: Example: Consumer engagement through customization
Example: Consumer engagement through customization 22 Amer Sports CMD 2015
Slide 23: Connected Devices & Services: Toward 600+ MEUR
Connected Devices & Services: Toward 600+ MEUR Why this choice: • Major market trend; unique Amer Sports Digital Ecosystem in place Building blocks: • Suunto and Precor: strong pipeline of product launches and digital services • Sports Tracker: integration and scale-up for cross-selling • New concep
Slide 24: Amer Sports Connected Digital Ecosystem, now in full acceleration
Amer Sports Connected Digital Ecosystem, now in full acceleration 24 Amer Sports CMD 2015
Slide 25: Summary
Summary
Slide 26: Summary
Summary What stays the same: • Sustainable Growth Model, portfolio logic, and strategic priorities What changes: • Higher growth ambition and new glidepath time horizon • Acceleration of the prioritized building blocks • Acquisitions now part of the growth model Rationale: • We have the track-record
Slide 27: Prioritized, sequenced program continues
Prioritized, sequenced program continues Net sales ≥3.5 BEUR, improving EBIT-% Net sales ~2.5 BEUR, EBIT-% toward 10% Continuous portfolio transformation toward: Net sales 2+ BEUR, EBIT-% 7% • Sustainable Growth Model • Faster growth Net sales • Integration • Higher profitability 1.5 BEUR, • New str
Slide 28: AMER SPORTS
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Slide 29: 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