Amer Sports, Inc. · NYSE:AS
Amer Sports — Q4 2023 Earnings Presentation
23 slides from Amer Sports's earnings presentation, Mar 5, 2024
Slide 1: Amer Sports 4Q 2023
Amer Sports 4Q 2023 MARCH 2024
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes estimates, projections, statements relating to the business plans, objectives, and expected operating results of Amer Sports Inc. (“Amer Sports” or the “Company”) that are “forward-looking statements” within the meaning of the Private Securities
Slide 3: Amer Sports 4Q 2023
Amer Sports 4Q 2023 MARCH 2024
Slide 4: Amer Well Positioned
Amer Well Positioned • Unique portfolio of premium outdoor & sports brands • Brands with high engagement and satisfaction, but still small in the global outdoor and sports market • Premium outdoor & sports market remains healthy, especially in greater China and North America • Highest-margin brands,
Slide 5: Segment Revenues
Segment Revenues Quarterly revenue ($M) and change (in %) by segment, vs same period of 2022 Group Technical Apparel Outdoor Performance Ball & Racquet +35% +79% +43% +30% +69% +18% +24% +26% +11% +36% +26% +10% +11% +2% +1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -3% 5
Slide 6: Technical Apparel
Technical Apparel • 4Q revenues +26% to $550 million driven by 42% DTC Revenue ($M) and Adjusted Operating Margin Development growth including 33% omni-comp growth. Partially offset by a 5% decline in wholesale due to comparability CAGR issues. +45% YoY 32.5% • Arc'teryx strong brand momentum across
Slide 7: Outdoor Performance
Outdoor Performance • Revenues +2% in 4Q to $523 million driven by strong top- Revenue ($M) and Adjusted Operating Margin Development and bottom-line performance in winter sports equipment early in the ski season, partially offset by expected Salomon footwear deceleration in wholesale. CAGR 15.2% •
Slide 8: Ball & Racquet
Ball & Raquet • 4Q revenues -3% to $242 million. Revenue ($M) and Adjusted Operating Margin Development • Growth in EMEA and China was not enough to offset CAGR declines in Ball & Racquet’s largest channel, U.S. wholesale. Technical apparel 18.3% • Baseball and Racquet weakness more than offset grow
Slide 9: Full Year 2023 & Q4 2023 Highlights
Full Year 2023 & Q4 2023 Highlights • Full-year 2023 revenues, net income, and adjusted EBITDA at the high-end of or above preliminary flash results range reported in January • 2023 revenues +23% to $4.37 billion; 4Q revenues up 10% • 2023 adjusted gross profit margin +240 bps; 4Q adjusted gross pro
Slide 10: Revenue by Channel
Revenue by Channel Quarterly revenue ($M) and change (in %) by channel, vs same period of 2022 Group Wholesale DTC +35% +70% +30% +27% +60% +24% +24% +43% +37% +10% +6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -4% 10
Slide 11: Revenue by Geography
Revenue by Geography Quarterly revenue ($M) and change (in %) by geographical area, vs same period of 2022 Americas EMEA Greater China APAC +27% +125% +53% +50% +50% +39% +29% +17% +14% +59% +22% +43% +45% +5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 -1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -4% 11
Slide 12: Adjusted Gross Profit Margin Performance: 4Q and Full Year
Adjusted Gross Profit Margin Performance: 4Q and Full Year 2023 Adj. Gross Margin 4Q Adj. Gross Margin Full Year 52.2% 52.5% 50.5% 50.1% Q4’22 Pricing, Channel & Transportation Q4 ’23 FY 2022 Pricing, Channel & Transportation FY 2023 Product, Region Mix & Logistics Product, Region Mix & Logistics Di
Slide 13: Adjusted SG&A Bridge: 4Q and Full Year 2023
Adjusted SG&A Bridge: 4Q and Full Year 2023 Adj. SG&A 4Q ($M) Adj. SG&A Full Year ($M) 560 1,869 461 1,485 Q4’22 Personnel Marketing Rent & IT Other Q4 ’23 LY (YTD) Personnel Marketing Rent & IT Other Q4 ’23 expenses facility expenses facility (YTD) Note: 'Other' includes travel & entertainment, dep
Slide 14: Key Group Metrics
Key Group Metrics 4Q and full year vs same period of 2022 Revenue ($B) Adj. Gross Margin % Adj. Operating Margin % Adj. Net Loss ($M) 2022 46 2023 52.2% 4.368 52.5% 12.5% 50.5% 50.1% 3.549 10.4% 9.9% 8.5% -30 -41 1.199 1.315 -135 4Q FY 4Q FY 4Q FY 4Q FY +10% +23% +170bps +240bps -215bps +140bps 14 N
Slide 15: Pre-IPO and Post-IPO Net Debt
Pre-IPO and Post-IPO Net Debt 12/31/2023 ($M) Pro-Forma* ($M) • IPO proceeds of ~$1.5B including Cash 483 343 fully exercised green shoe option Term loans 1,863 2,070** • Significantly deleveraged the balance sheet Shareholder loans 4,077 0 • Leverage ratio substantially improved Revolver 381 0 Tota
Slide 16: Inventory
Inventory Yearly revenue and inventory and change (in %) Inventory and Sales growth • After elevated inventory growth in 2022 due to supply chain issues and inventory investments to support growth, inventory 54% growth normalized by the end of the 2023 and was below sales growth. • We are comfortabl
Slide 17: Outlook
Outlook Long-term algorithm • Low double-digit to mid-teens annual sales growth • 300+ bps of gross margin expansion over next 3-5 years • 30-70 basis points of annual adjusted operating margin expansion First Quarter 2024 • Group revenue +6-8% growth (>30% growth for Technical Apparel, flat revenue
Slide 18: Q&A
Q&A
Slide 19: Amer Sports brand logos
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Slide 20: Appendix
Appendix 1. Adjusted gross profit reconciliation 2. Adjusted SG&A reconciliation 3. Adjusted operating profit reconciliation 4. EBITDA, adjusted EBITDA and adjusted EBITDA margin reconciliation 20
Slide 21: Adjusted Gross Profit and SG&A Reconciliation
21 ADJUSTED GROSS PROFIT RECONCILIATION For the Three Months and Year Ended December 31, 2023, and 2022 (Unaudited; $ in millions) ar Ended Decemb Gross profit $ 683 $ 602 $ 2,276 $ 1,764 PPA 4 3 15 14 Restructuring expenses - - 1 - Adjusted gross profit $ 687_$ 605 $ 2,293 $ 1,778 Adjusted gross pr
Slide 22: Adjustment for PPA note
Adjustment for PPA is related to amortization of intangible assets related to the acquisition and delisting of Amer Sports in 2019. 22
Slide 23: Amer Sports presentation closing slide
23 March 5, 2024 © Amer Sports • Presentation / presenter name