2015 Sixth consecutive year of profitable growth · improve from 2015, despite challenging market...
Transcript of 2015 Sixth consecutive year of profitable growth · improve from 2015, despite challenging market...
Amer Sports Annual General Meeting
2015 – Sixth consecutive year of profitable growthMarch 8, 2016 – Heikki Takala, President and CEO
2015: Another record year
• Net sales EUR 2,534.4 million (2,228.7), +6%. Excl. acquisitions +5%*.
– Broad-based growth in line with the strategy
– Renewal in underperforming units
• Gross margin 45.2% (43.9%)
• EBIT EUR 212.1 million (168.3), EBIT margin 8.4% (7.6%)**
• Free cash flow EUR 121.7 million (53.5), 100% of net profit
• Balance sheet strengthened: net debt / EBITDA 1.7 (2.0)**
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* In local currencies
** Excl. NRI
Progress vs. financial targets set in 2010
3
Target 2009 2010 2011 2012 2013 2014 2015
GrowthDelivering organic,
currency-neutral
annual growth of 5%
-4% 8% 9% 5% 8% 6% 5%
ProfitabilityEBIT of at least 10%
of net sales3.2% 6.2% 7.2% 6.7% 7.3% 7.6% 8.4%
Cash flowAnnual free cash
flow equal to net
profit
4.5 0.7 -0.2 0.9 0.5 0.6 1.0
Balance
sheet
Year-end Net Debt /
EBITDA ratio of 3
or less
3.6 2.2 2.3 2.5 2.2 2.0 1.7
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Profitable growth and improvement have created shareholder value
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Amer Sports +285%, TSR 352%SP500 +82%
OMX Helsinki CAP +43%
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-50 %
0 %
50 %
100 %
150 %
200 %
250 %
300 %
350 %
Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15
Amer Sports OMXHCap S&P 500 Index
Dec-15
Progress in the strategy execution in 2015
We reached several milestones in 2015
• Company Gross Margin above 45%
• Softgoods EUR 900 million, up by EUR 600 million vs. 6 years ago
• Business to Consumer 7% of the Group (1% in 2010)
• Sales in China x5 vs. 6 years ago
• Connected devices sales 7% of the Group (0% in 2010)
• Winter Sports Equipment profitability improved in a mild winter
• Wilson early turn-around
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Examples of the progress:
Consumer-driven innovation drives growth
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Examples of the progress:
+40 stores, +9 e-commerce stores in 2015
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Arc’teryx in London
Atomic custom studio
Examples of the progress:
Renewal and growth through digitalization
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In 2015 we also started to accelerate through selective acquisitions
Queenax
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Louisville Slugger
Sports Tracker
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Amer Sports equipping the brightest stars in the world
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Outlook
Outlook for 2016
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• In 2016, Amer Sports net sales in local currencies are expected
to increase and EBIT margin excluding non-recurring items to
improve from 2015, despite challenging market conditions.
• The company will focus on growing the core business and
accelerating five prioritized areas: Apparel and Footwear, US,
China, Business to Consumer, as well as digitally connected
devices and services.
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Accelerating toward 2020
New 5-year strategic glidepath in place
• New financial targets
• Focus on accelerating profitable growth especially in the 5
prioritized areas:
– Apparel and Footwear (2020 target: MEUR ~1,500)
– US (MUSD ~1,500)
– China (MEUR ~200)
– Business to Consumer (MEUR ~400+)
– Digitally Connected Devices and Services (MEUR ~600+)
• Attractive returns behind profitable growth and ongoing
company transformation
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Prioritized, sequenced program continues
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• Sustainable Growth Model
• Integration
• Acquisition readiness
• On-going renewal and
acceleration
Net sales ≥3.5 BEUR,
improving EBIT-%
Continuous portfolio
transformation toward:
• Faster growth
• Higher profitability
• Asset efficiency
~2010 – 2013 ~2014 – 2015 ~2016 – 2020
• New strategy
• Transformation from
Hardgoods to ”Hybrid”
• Drive organic growth
• Operational excellence
Net sales
1.5 BEUR,
EBIT-% 4%
Net sales 2+ BEUR,
EBIT-% 7%
Net sales ~2.5 BEUR,
EBIT-% toward 10%
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