Amer Sports, Inc. · NYSE:AS

Amer Sports — Q1 2006 Earnings Presentation

25 slides from Amer Sports's earnings presentation, May 2, 2006

  1. Slide 1: Interim Report January – March 2006

    Interim Report January – March 2006 May 2, 2006

  2. Slide 2: Segment reporting 2006

    Segment reporting 2006 1. BUSINESS SEGMENTS Required segment information: sales, EBIT, assets and liabilities, capex, Salomon Wilson Precor Atomic Suunto depreciation, cash flow Business areas Voluntary 1. Winter Sports Equipment 1. Racquet Sports Precor Atomic Suunto additional 2. Apparel and Footw

  3. Slide 3: Pro forma figures

    Pro forma figures ƒ Salomon changed substantially Amer Sports’ business structure and increased seasonality ƒ Pro forma is used for 2005 as primary comparison information – Salomon has been accounted for as from January 1, 2005 – Figures do not include non-recurring items related to the Salomon acqu

  4. Slide 4: Changes in net sales

    Changes in net sales 600 2000 1800 500 1600 1400 400 1200 Pro forma MEUR Reported 300 1000 Pro forma cumulative 800 Reported cumulative 200 600 400 100 200 0 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06

  5. Slide 5: Changes in EBIT

    Changes in EBIT 80 140 70 120 60 100 50 80 40 Pro forma 60 MEUR Reported 30 40 Pro forma cumulative 20 Reported cumulative 20 10 0 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 -10 -20 -20 -40

  6. Slide 6: Changes in net sales 2005

    Changes in net sales 2005 Net sales by business segments Net sales by geographical area 700 900 600 800 3. 700 500 3. 600 2. MEUR 400 MEUR 500 Pro forma 2. 300 400 Reported 300 200 1. 200 1. 100 100 0 0 Salomon W ilson Precor Atomic Suunto Americas EMEA Asia Salomon Wilson 1. Winter Sports Equipment

  7. Slide 7: Profit and loss statement

    Profit and loss statement MEUR Q1/06 Q1/05 Ch % 2005 Net sales 417.4 385.0 8 1,732.0 EBIT 1.6 -3.0 117.1 Net financials -4.9 -5.0 -24.0 EBT -3.3 -8.0 93.1 Taxes 1.0 3.0 -30.7 Net result -2.4 -5.0 62.2

  8. Slide 8: Breakdown of net sales

    Breakdown of net sales MEUR Ch % in local Q1/06 Q1/05 Ch % 2005 currencies Salomon 123.3 107.2 15 12 623.5 Wilson 178.3 172.3 3 -3 570.4 Precor 72.9 59.0 24 15 252.1 Atomic 23.7 26.5 -11 -13 214.0 Suunto 19.2 20.0 -4 -9 72.0 Total 417.4 385.0 8 3 1,732.0

  9. Slide 9: Salomon, net sales

    Salomon, net sales Mavic Ch % in local 24 % Winter Sports MEUR Q1/06 Q1/05 Ch % 2005 currencies Equipment 35 % Winter Sports Eq 43.4 38.3 13 12 348.6 Apparel and Footwear 50.8 43.5 17 12 175.6 Mavic 29.1 25.4 15 13 99.3 Apparel and Total 123.3 107.2 15 12 623.5 Footwear 41 %

  10. Slide 10: Wilson, net sales

    Wilson, net sales Ch % in local Golf MEUR Q1/06 Q1/05 Ch % 2005 currencies 21 % Racquet Sports Racquet Sports 65.8 61.0 2 225.4 37 % 8 Team Sports 75.3 63.9 18 8 203.8 Golf 37.2 47.4 -22 -26 141.2 T eam Sports Total 178,3 172.3 3 -3 570.4 42 %

  11. Slide 11: Geographical breakdown of net sales

    Geographical breakdown of net sales MEUR Ch % in local Q1/06 Q1/05 Ch % currencies 2005 Americas 220.4 194.4 13 3 783.3 EMEA 157.8 155.3 2 1 758.3 Asia Pacific 39.2 35.3 12 9 190.4 Total 417.4 385.0 8 3 1,732.0

  12. Slide 12: Breakdown of EBIT

    Breakdown of EBIT MEUR Q1/06 Q1/05 Ch % 2005 Salomon -22.4 -24.5 - 18.1 Wilson 24.3 26.1 -7 52.1 Precor 12.0 5.8 - 31.1 Atomic -9.4 -8.4 - 22.2 Suunto 1.1 1.7 -35 3.4 HQ -4.0 -3.7 - -9.8 Total 1.6 -3.0 - 117.1

  13. Slide 13: Cash flow statement

    Cash flow statement MEUR 1-3/06 1-3/05 1-12/2005 Net cash from operating activities 197.9 28.8 96.4 Net cash from investing activities -39.7 -2.6 -471.6 Net cash from financing activities Dividends paid -35.7 -32.0 -36.0 Issue of shares - - 0.7 Change in net debt -125.0 7.4 441.3 Net increase/decrea

  14. Slide 14: Balance sheet

    Balance sheet MEUR 31 Mach 2006 31 March 2005 31 Dec 2005 Goodwill and other intangible non-current assets 522.5 296.9 528.8 Other non-current assets 179.4 112.0 172.1 Inventories 302.1 161.7 301.6 Receivables 409.6 236.6 635.1 Marketable securities 1.9 - - Cash 43.9 18.9 48.7 Equity 497.5 450.3 536

  15. Slide 15: Equity ratio and gearing, %

    Equity ratio and gearing, % 120 100 80 Eq ratio 60 Gearing 40 20 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 31 March 2006 31 March 2005 31 Dec 2005 Equity ratio, % 34.1 54.5 31.8 Gearing, % 88 31 112

  16. Slide 16: Roger Talermo, President & CEO

    Roger Talermo President & CEO

  17. Slide 17: Key indicators

    Key indicators Pro forma Reported Ch Q1/06 Q1/05 Ch % Q1/06 Q1/05 % Net sales (MEUR) 417.4 385.0 8 417.4 277.8 50 EBIT (MEUR) 1.6 -3.0 1.6 21.5 -93 EBT (MEUR) -3.3 -8.0 -3.3 20.8 EPS (EUR) -0.03 -0.07 -0.03 0.20

  18. Slide 18: General market conditions

    General market conditions ƒ Solid start for the industry – Good winter season boosted sales of winter sports equipment and apparel ƒ The sports apparel business is undergoing change – Sportswear is increasingly worn in non-sport settings – More technical apparel in sports – The market has been highl

  19. Slide 19: Salomon integration and restructuring

    Salomon integration and restructuring ƒ Three-year turn-around program proceeding as planned – In 2006 codetermination negotiations in France and restructuring of industrial production ƒ The implementation of synergies with Atomic is proceeding in accordance with plans

  20. Slide 20: Winter sports

    Winter sports ƒ A new group structure – Significance of winter sports has increased ƒ On the basis of inventory levels and amount of orders, winter sports net sales for the year as a whole is expected to grow – Pre-order season is still continuing

  21. Slide 21: Sourcing consolidation

    Sourcing consolidation ƒ Amer Sports Sourcing Ltd in Hong Kong, and its Mainland China based Representative Office are established ƒ Objectives – Higher operational supply chain efficiencies – Better risk management

  22. Slide 22: Challenges

    Challenges ƒ Organization is rebuilt ƒ New strategic focus in process ƒ Focus on improving delivery capabilities and product launches ƒ Smaller customer base due to refocus of sales programs ƒ Weaker start than planned ƒ The effects of the cost cuts and the reorganization measures are not yet fully

  23. Slide 23: Strong performers

    Strong performers Salomon ƒ The trend in Salomon’s Q1 sales was good ƒ Team Sports achieved record Q1 results, growth in all key categories ƒ Racquet Sports maintained its strong momentum ƒ Precor ƒ Solid double-digit revenue growth and profitability ƒ Atomic ƒ Strong start for the coming season

  24. Slide 24: Amer Sports' outlook for 2006

    Amer Sports’ outlook for 2006 ƒ In 2006, Amer Sports’ net sales are expected to increase to EUR 1.8 billion (pro forma 2005: EUR 1,732 million). ƒ Earnings per share in 2006 are expected to come in at EUR 0.90–1.05. ƒ 2006 is a transitional year for Salomon. Substantial earnings improvements are exp

  25. Slide 25: The No. 1 sports equipment company in the world

    The No. 1 sports equipment company in the world

Amer Sports — Q1 2006 Earnings Presentation on 6ix