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Amer Sports Sustainable Growth Model (SGM)
• We pursue a Sustainable Growth Model: profitable growth and healthy
balance sheet.
• Our SGM consists of i) revenue growth, ii) making and improving profits, and
iii) investing for the future.
• Our growth can be organic or through acquisitions. We prefer organic.
• Our profit can come from growth, or through cost cutting. We prefer growth.
• We constantly renew ourselves to allocate resources into more attractive
areas: faster growth, higher profitability, better asset efficiency.
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Amer Sports portfolio logic • Amer Sports is
– A balanced equipment and softgoods company, with a unique model of leveraging
our authentic brands
– An integrated company where portfolio composition is determined by synergies and
Amer Sports being the “right owner”
• We are the “right owner” for any asset as long as we develop its performance
relatively better vs. its competition and/or we create competitive advantage
through unique portfolio logic
• As long as we own an asset, we aim at growing its revenue, make profits, and
invest for its future
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Long-term financial targets – improvement continues
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Target 2009 2010 2011 2012 2013 2014
Growth Delivering organic, currency-
neutral annual growth of 5%
-4% 8% 9% 5% 8% 5%
Profitability EBIT of at least 10% of net
sales
3.2% 6.2% 7.2% 6.7% 7.3% EBIT
improvement
Cash flow Annual free cash flow equal
to net profit
C/F of
Net
Profit
4.5
C/F of
Net
Profit
0.7
C/F of Net
Profit
negative
C/F of
Net
Profit
0.9
C/F of
Net Profit
0.5
Balance
sheet
structure
Year-end Net Debt / EBITDA
ratio of 3 or less
3.6 2.2 2.3 2.5 2.2
Progress is driven through our strategic priorities
Clear portfolio roles
and synergies,
integrated company
– Majority of units
improving according to
their portfolio role
– Scale and synergies:
example Gross Margin
(up 4%-pts vs. 2009)
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Faster growth in
softgoods
– 2009-2013:
Softgoods CAGR
17%
– Strong growth
continues with
1+ BEUR in sight
Win with
consumers
– Leveraging our
brands to engage
with more
consumers, in
more occasions,
more often
Win in Go to
Market
– Controlled distribution
expansion
– Emerging markets
progressing
– B2C turning into a
contributor. 200+ own
retail stores, 60 e-
commerce stores
Operational
excellence
– Company
organized for
driving
sustainable
fundamentals
with improving
KPIs
1 2 3 4 5
Majority of units are progressing per targets
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Business area Objective Status
Footwear Further accelerate profitable growth Growth continues with high profitability. CAGR
2009-13 18%.
Apparel Drive significant revenue growth for scale Fast growth with improving profitability. CAGR
2009-13 18%.
Winter Sports Equipment To sustainable profitability. Profitable growth
through continuous renewal
Break-even point down by ~20 MEUR. Growth
in new segments.
Cycling Re-build profitability, then accelerate Profitable business. Renewal and integration
for faster growth.
Sports Instruments To target profitability, then accelerate Successful turnaround, profitable growth
accelerated. CAGR 2009-13 11%.
Ball Sports Re-set the base, then re-ignite profitable
growth Lagging behind targets, now restructuring.
Fitness Back to target profitability through global
growth, margin improvement, and efficiency
Well on improvement track, CAGR 2009-13
10%, 2013 EBIT-% 8.2%.
In 2010-13 we moved from “2nd division” to the premier league
30
28
24
19 18
22
20
18
16
14
12
12 3 11 10 9 8 20 7 6 5 22 21
8
4 2 1 0 -1 -2
-2
-4
-6
26
10
6
4
2
0
17 16 15 14 13
EBIT-% 2013
AMER SPORTS
AMER SPORTS 2006-2009
SALES CAGR%
2010-2013
Peer Group
• Adidas
• Anta Sports Products
• Asics
• Callaway
• Columbia
• Dunlop
• Head
• Jarden
• Life Time Fitness
• Nike
• Puma
• Quiksilver
• Under Armour
• VF
• Wolverine World Wide
Data Source: Bloomberg
CMD 2013: mid-term targets confirmed, focus on acceleration
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Sales ~1.5 BEUR
EBIT <3%
Sales ~2.5 BEUR
EBIT ~10%
Sales >3 BEUR
(+5%/a)
EBIT ~10% Building blocks
in place
2009 2015-16 2020
?
Restructuring for acceleration
• We continue to renew and restructure ourselves
• Our 2012 restructuring enabled turnaround of Winter Sports
Equipment and acceleration of Softgoods, B2C, and emerging
markets
• Our 2014 restructuring is designed to turn around Ball Sports and
further accelerate proven growth drivers and ensure appropriate
resourcing of new learning areas
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Accelerate through the Core
1. Big categories:
• Keep appropriate momentum in hardgoods
• Footwear & Apparel towards 50% of the Group
2. Big brands: towards full long-term potential
3. Big countries: drive USA, core EMEA markets, Japan, and China.
Re-confirm model in Russia and Latin America.
4. Multi-channel: own retail and e-commerce to 10+% of sales
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Our next growth area: Digital consumer engagement • Digital/connected products represent already >5% of the Group sales
• Our brands talk to tens of millions of consumers via our websites
• Our 60 e-commerce shops engage and convert tens of millions of
consumers
• We offer a magnitude of digitally customizable products
• We have a scalable CRM database with millions of registered
consumers
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Amer Sports Connected Digital Ecosystem:
Accelerating the potential of the portfolio
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Brand Sites
AS 360
CRM
Database
Mobile Engagement Connected Products
Brand and
Sport
specific
Mobile
Applications
(e.g. Suunto
Movescount,
Salomon
CityTrail,
Wilson
Basketball)
AMER SPORTS ECOMMERCE
Service Platforms
3rd party
services
through API’s
We now accelerate in Digital
Digital capabilities have been established, and acceleration is underway:
• Drive digitally connected products/devices towards 10% of sales
• Multiply traffic to our websites and e-commerce
• Increase conversion (through both e-commerce and wholesale)
• Step change loyalty through bigger number of registrants in our CRM database
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Prioritized, sequenced program continues
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Clarify future direction,
build critical capabilities,
allocate resources and
reignite growth
Deliver mid-term
targets and prepare
for acceleration
• Sustainable Growth Model
• Integration for scalable,
synergistic platform:
acquisition readiness
• Qualification of business cases
for future acceleration
• On-going renewal and
restructuring
Sales Acceleration at accretive
profitability
Continuous portfolio
transformation towards:
• Faster growth
• Higher profitability
• Asset efficiency
~2010 – 2013 ~2014 – 2016 ~2017 – 2020
• New strategy
• Transformation from
Hardgoods to ”Hybrid”
• Drive organic growth
• Operational excellence
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 risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Amer Sports assumes no responsibility to update any of the forward-looking statements contained herein. No representation or warranty, express or implied, is made or given by or on behalf of Amer Sports or its employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.
www.amersports.com
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