Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (September 2011)
14 slides from Amer Sports's investor day presentation, Sep 1, 2011
Slide 1: Accelerating Growth in Apparel
ACCELERATING GROWTH IN APPAREL September 1, 2011 // Andy Towne, President of Apparel 1 Contents 1. Strategic role of Apparel & Gear 2. Global apparel market and where we play 3. Strategic building blocks 4 Summary 4. 2 Amer Sports CMD 2011 1
Slide 2: Implications for Amer Sports Apparel
Capital Markets Day – September 2010 Every part of the Group has a clear role, targets and action plan Business area Objective Actions Apparel & Further accelerate growth • Expand commercial footprint Footwear • Enter new segments and categories • Category-based operation 3 Amer Sports CMD 2011 Impl
Slide 3: Global Apparel Market and Where We Play
GLOBAL APPAREL MARKET AND WHERE WE PLAY 5 5 What is sports apparel? 6 Amer Sports CMD 2011 3
Slide 4: The attractiveness of sports apparel
The attractiveness of sports apparel Big, growing market + high profitability + asset efficient €3 €3 2010 €91.3 bn € billion N America €16 Europe €45 +2.8% v 2009 Asia ME & A €24 S America Amer Sports Apparel ~0.4% share Source: NPD Consumer Panel 2010 Sporting Goods (retail value) 7 Amer Sports CM
Slide 5: Amer Sports Apparel overview
Amer Sports Apparel overview 180,0 160,0 140,0 • Main brands: Salomon, Arc’teryx, 120,0 Bonfire 100,0 H2 80,0 60,0 H1 • Small, emerging businesses: 40,0 Wilson Tennis, Mavic 20,0 ‐ • Historical CAGR 15%. Growth 2009 2010 2011 accelerated since Q4/2010 to ~25% Sales by Brand 2010 (%) Sales by Region
Slide 6: Group strategic priorities in Apparel
Group strategic priorities in Apparel 1. Clear portfolio roles and synergies; integrated company - Build an integrated, high-performing category operation 2 2. G Grow faster f in i softgoods f d - Aggressively grow the core businesses: drive Salomon and Arc’teryx to full potential - Add significant
Slide 7: Apparel category integrated model
Apparel category integrated model Before: Now: • No category-level coordination • Expert category management team • Brands operating in silos • Synchronised product development; coordinated processes & controls • Brands sourcing independently • Maximised sourcing scale • Product makers not product s
Slide 8: Grow faster in softgoods
AGGRESSIVELY GG SS G GROW O THE CORE BUSINESSES Grow faster in softgoods • Significantly g y strengthen g p product offer • Expand into sportswear, gear and other adjacencies • Drive distribution quality (from item to collection) • Step change performance in US & APAC Amer Sports CMD 2011 8
Slide 9: Wilson Tennis
• Learn how to leverage brand into new categories • Expand distribution - Maintain quality & revenue per door - Launch e-commerce • Build awareness Amer Sports CMD 2011 Wilson Tennis • Strengthen tennis apparel • Expand into adjacencies • Drive scale through category approach • Strengthen go-to-mark
Slide 10: Action sports
ADD SIGNIFICANT NEW BUSINESS Grow faster in softgoods Leverage strong brand equities • Exploit the strength in equipment: launch apparel f from brands b d with ith strong t authenticity • Organise & build capabilities to expand into Gear Base layer adjacent categories sports Action • Extend brand co
Slide 11: Deliver innovation pipeline
Deliver innovation pipeline • Innovation track record in apparel • Driving at category level - New leadership - Re-organised resources & processes 21 Amer Sports CMD 2011 DRIVE DISTRIBUTION Win in go-to-market 11
Slide 12: Operational excellence in apparel
Before: Now: • Low door penetration (all brands) • Commercial planning separated from sales • Narrow range sold into accounts execution • Insufficient instore stand stand-out out • Selling assortments & instore programmes • Low sales per door (excl. Arc’teryx) (e.g. shop-in-shop) • Intentional bench
Slide 13: Integrate sourcing platform
Integrate sourcing platform • One vendor O d interface i t f for f allll brands b d - Synchronize product development across brands - Create scale • Create margin builders - Drive production efficient design - Coordinated usage of materials - Leverage L volumes l tto llevel-load l l d ffactories t i
Slide 14: Strategic Glidepath
Strategic Glidepath Deliver step-change growth Accelerate growth & profitability Build the platform ~2013 and deliver the year • Expansion of Under-optimised ~2012 established franchises apparel initiatives • Drive range productivity • Launch of new brands & ~2011 • Extend distribution categories •