Solid quarter with broad-based progress, strategic focus areas are delivering
October 25, 2018 – Heikki Takala, President and CEO
Amer Sports Q3/2018
Profitable growth continued in Q3
• Net sales EUR 757.2 million (697.9): +9%, organic growth 3%*
– Cycling business reported as discontinued operations**
• Gross margin 46.2% (46.5)
• EBIT excl. IAC EUR 116.9 million (103.8)
• Free cash flow -132.2 (-55.8) reflecting inventory build-up for Q4
25 October 2018 Amer Sports Interim Report Presentation
* In local currencies
** 2018 and 2017 figures adjusted accordingly
The comparative figures for 2017 have been restated in accordance with IFRS 15 Revenue from contracts with customers
and IFRS 9 Financial instruments
2
Progress across the portfolio
• Broad-based growth and improvement
– Winter Sports Equipment +8%, strong momentum in all product categories
– Sports Instruments +15%, strong momentum
– Ball Sports +4%, good demand especially in baseball category +16%
• Apparel +31% further boosted by Peak Performance,
Arc’teryx +7% with another year of double digit growth
• Fitness order book strong for Q4 thanks to several new customers
25 October 2018 Amer Sports Interim Report Presentation3
Strategic priorities are delivering
• Apparel accelerates with 31% growth
• Footwear EMEA distribution renewal continues – longer term
improvement already in sight. US growing strongly
• Direct to Consumer organic growth +17% to EUR 55 million in sales– own retail +13% (same store growth +7%)
– e-commerce +23%
“Modern sales channels” ~30% of sales
• China +20%
• US returning to a mid-single digit growth
• Portfolio: actively finding a buyer for the Cycling asset
25 October 2018 Amer Sports Interim Report Presentation4
Balance sheet
25 October 2018 Amer Sports Interim Report Presentation5
EUR million
September 30,
2018
September 30,
2017
Dec. 31,
2017
Net debt 946.8 608.1 460.7
Shareholders’ equity 921.5 860.1 885.4
Capital employed 1,868.3 1,468.3 1,346.0
Working capital 1,010.9 863.7 755.4
Capital turnover, LTM 1.76X 1.78X 1.87X
ROCE*, % 14.7 13.2 14.8
Net debt/EBITDA* LTM 3.17 2.29 1.62
Net debt/equity 1.03 0.71 0.52
* Excluding IAC
Outlook unchanged – guided by our long term targets and strategies
• In 2018, Amer Sports’ net sales in local currencies as well as EBIT excl. IAC
are expected to increase from 2017. Due to ongoing wholesale market
uncertainties, the quarterly growth and improvement are expected to be
uneven.
• The company will prioritize sustainable, profitable growth, focusing on its
five strategic priorities (Apparel and Footwear, Direct to Consumer, China,
US, and Connected Devices and Services) whilst continuing its consumer-
led transformation.
25 October 2018 Amer Sports Interim Report Presentation6
-40
-20
0
20
40
60
80
100
120
EBIT excluding items affecting comparabilityMEUR
79.2
Q3/18Q3/14
91.6
Q3/15 Q3/16
103.5
Q3/17
99.8113.1
Outdoor Q3/2018, continuing operations (Q3/2017)
Net sales EUR 522.0 million, +12%*
• Apparel +31%, driven by Peak Performance and Arc’teryx
• Footwear -4%, consolidation of EMEA distribution continued, US and Japan up high-single digit
• Winter Sports +8%
• Sports Instruments +15%
EBIT excl. IAC EUR 113.1 million (99.8)
25 October 2018 Amer Sports Interim Report Presentation
* In local currencies
0
100
200
300
400
500
600
Net salesMEUR
Q3/14 Q3/15
401.3
Q3/16
445.4
Q3/17
471.4
Q3/18
468.9 522.0
7
Ball Sports Q3/2018 (Q3/2017)
Net sales EUR 147.2 million, +4%*
• Team Sports grew by 9%,
Baseball category sales grew by 16%
EBIT excl. IAC EUR 7.7 million (6.3)
EBIT margin excl. IAC 5.2% (4.5)
25 October 2018 Amer Sports Interim Report Presentation
* In local currencies
0
20
40
60
80
100
120
140
160
180
200
Net salesMEUR
Q3/18
147.8
Q3/14 Q3/15
147.0
112.9
Q3/16 Q3/17
141.2 147.2
0
2
4
6
8
10
12
14
16
18
20
EBIT excluding items affecting comparabilityMEUR
Q3/18Q3/14 Q3/15
7.7
Q3/16
8.8
3.95.3
Q3/17
6.3
8
0
2
4
6
8
10
12
14
16
EBIT excluding items affecting comparability
Fitness Q3/2018 (Q3/2017)
Net sales EUR 88.0 million,
at previous year’s level*
• Growth in APAC offset by EMEA
EBIT excl. IAC EUR 1.2 million (4.5)
• Decreased gross margin lowered
the profitability
Order book strong for Q4
25 October 2018 Amer Sports Interim Report Presentation
* In local currencies
0
20
40
60
80
100
120
140
Net salesMEUR
Q3/18
80.7
Q3/14 Q3/15 Q3/16
89.384.1
Q3/17
87.8 88.0
Q3/18Q3/14 Q3/15 Q3/16 Q3/17
7.3
1.2
9.1
5.44.5
9
Key takeaways from CMD in September
• We continue to grow and create value
• Our strategy is working and organic growth drivers remain largely unchanged– Sustainable Growth Model
– Clear portfolio roles
– Group scale and synergy
– Acceleration priorities: Softgoods, D2C, China, US, digitalization
• We continue our transformation towards areas of faster sustainable growth,
higher profitability, and asset efficiency, with increasing weight of Softgoods,
D2C, and China
• As part of the transformation, we will broaden our toolbox to include strategic
portfolio choices – a more focused company with increasingly attractive
business model
Amer Sports Interim Report Presentation10 25 October 2018
Appendix
Net sales and EBIT breakdown (continuing operations)
25 October 2018 Amer Sports Interim Report Presentation
* Excl. IAC
NET SALES
(MEUR)
Q3/
2018
Q2/
2018
Q1/
2018 2017
Q4/
2017
Q3/
2017
Q2/
2017
Q1/
2017 2016
Q4/
2016
Q3/
2016
Q2/
2016
Q1/
2016
Outdoor 522.0 216.2 349.1 1,540.0 504.1 468.9 210.1 356.9 1,451.6 452.4 471.4 193.0 334.7
Ball Sports 147.2 159.0 164.2 659.0 163.0 141.2 169.8 185.0 671.1 171.9 147.0 165.5 186.7
Fitness 88.0 79.9 78.4 375.6 118.9 87.8 84.4 84.5 349.2 109.8 84.1 80.9 74.4
Total 757.2 455.1 591.1 2,574.6 786.0 697.9 464.3 626.4 2,471.9 734.1 702.5 439.4 595.8
EBIT
(MEUR)
Q3/
2018*
Q2/
2018*
Q1/
2018 2017*
Q4/
2017*
Q3/
2017*
Q2/
2017*
Q1/
2017* 2016*
Q4/
2016*
Q3/
2016*
Q2/
2016
Q1/
2016*
Outdoor 113.1 -27.9 33.6 178.4 81.4 99.8 -28.5 25.7 187.1 70.7 103.5 -19.3 32.3
Ball Sports 7.7 11.0 14.9 45.2 13.8 6.3 9.3 15.8 44.8 12.8 5.3 7.7 19.0
Fitness 1.2 0.0 0.1 20.1 12.4 4.5 2.5 0.7 17.0 6.8 5.4 4.5 0.3
Headquarters -5.1 -5.8 -8.3 -29.3 -9.5 -6.8 -5.2 -7.8 -37.0 -8.0 -9.7 -8.3 -11.0
Total 116.9 -22.7 40.3 214.4 98.1 103.8 -21.9 34.4 211.9 82.3 104.5 -15.4 40.6
13
Net sales by Business Unit in Q3(continuing operations)
25 October 2018 Amer Sports Interim Report Presentation
MEUR Q3/2018 Q3/2017
Ch
%
Ch
%* 2017
Footwear 138.5 145.1 -5 -4 500.8
Apparel 196.9 153.1 29 31 482.3
Winter Sports Equipment 143.4 133.1 8 8 415.2
Sports Instruments 43.2 37.6 15 15 141.7
Individual Ball Sports 62.9 64.5 -2 -2 296.9
Team Sports 84.3 76.7 10 9 362.1
Fitness 88.0 87.8 0 0 375.6
* In local currencies
14
25 October 2018 Amer Sports Interim Report Presentation
16%35%
49%
16%35%
49%
16%35%
49%
Outdoor
522.0
13% 59%
28%
Ball Sports
147.2
12% 16%
72%
Fitness
88.0
19% 24%
57%
Total
757.2
14% 46%
40%
EMEA Americas APAC
Sales development by region (continuing operations)
EMEA Americas APAC Total
MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %*
Outdoor 307.6 18 146.0 1 68.4 15 522.0 12
Ball Sports 23.0 -6 106.5 6 17.7 10 147.2 4
Fitness 20.7 -15 50.3 3 17.0 13 88.0 0
Total 351.3 14 302.8 3 103.1 14 757.2 9
* Change in local currencies
15
Foreign currency translation difference (continuing operations)
25 October 2018 Amer Sports Interim Report Presentation
Q3/2018 Q3/2017 Change
Reported Reported Local FX Reported, % Local FX, %
Footwear 138.5 145.1 143.9 -5 % -4 %
Apparel 196.9 153.1 150.3 29 % 31 %
Winter Sports Equipment 143.4 133.1 132.5 8 % 8 %
Sports Instruments 43.2 37.6 37.5 15 % 15 %
Outdoor 522.0 468.9 464.2 11 % 12 %
Individual Ball Sports 62.9 64.5 64.3 -2 % -2 %
Team Sports 84.3 76.7 77.3 10 % 9 %
Ball Sports 147.2 141.2 141.6 4 % 4 %
Fitness 88.0 87.8 88.3 0 % 0 %
Total 757.2 697.9 694.1 8 % 9 %
16
Balance sheet
25 October 2018 Amer Sports Interim Report Presentation
MEUR Sep 30, 2018 Sep 30, 2017 Dec 31, 2017
Goodwill and other intangible non-current assets 878.7 646.6 649.2
Tangible non-current assets and other non-current assets 339.1 332.2 340.5
Inventories and work in progress 611.5 562.6 481.3
Receivables 809.9 723.3 772.2
Cash and cash equivalents 198.1 229.3 358.4
Assets held for sale 120.7 - -
Shareholders’ equity 921.5 860.1 885.4
Interest bearing liabilities 1,146.2 837.4 819.1
- Long-term 742.7 792.0 632.8
- Current 403.5 45.4 186.3
Liabilities held for sale 18.5 - -
Other liabilities 871.8 796.5 897.6
Total 2,958.0 2,494.0 2,602.1
17
IFRS 15 Adjustments(continuing operations)
25 October 2018 Amer Sports Interim Report Presentation18
Contact information
• Heikki Takala, President and CEO
Tel. +358 20 712 2510
• Jussi Siitonen, CFO
Tel. +358 20 7122511
• Samppa Seppälä, Director, Corporate Communications and IR
Tel. +358 50 5680533
www.amersports.com
25 October 2018 Amer Sports Interim Report Presentation19
DisclaimerStatements 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 expressedin 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 orany other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.
www.amersports.com
25 October 2018 Amer Sports Interim Report Presentation20