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Amer Sports Q1/2016

Solid start for 2016April 22, 2016 – Heikki Takala, President and CEO

Broad-based improvement

• Net sales EUR 635.5 million (575.9), organic growth +6%

– Strong start for Footwear and Apparel, good momentum in Ball Sports,

Fitness starting to re-ignite growth

– EMEA +4%, Americas +17%, APAC +19%

– B2C +34%, e-commerce +42%

• Gross margin 47.4% (45.9%), driven by pricing ahead of currency pressure

• EBIT excl. items affecting comparability (IAC)* EUR 46.0 million (33.6)

– OPEX investments into acceleration, especially in B2C and digital

• Free cash flow EUR 32.8 million (43.0)

22 April 2016 Amer Sports Interim Report Presentation2

*Write-down of EUR 6.3 million: the receivable balance from a U.S. retailer

Asset efficiency continues improving


EUR million March 31, 2016 March 31, 2015 Dec. 31, 2015

Net debt 538.3 445.2 460.3

Shareholders’ equity 857.1 876.4 949.6

Capital employed 1,395.4 1,321.6 1,409.9

Working capital 455.0 524.2 508.9

Capital turnover, LTM 1.91X 1.86X 1.90X

ROCE, LTM % 16.5 14.7 15.9

Net debt/equity 0.63 0.51 0.48

Equity ratio % 35.6 39.2 37.2

LTM = Last Twelve Months


-40

-20

0

20

40

60

80

100

EBIT excluding items affecting comparability

0

100

200

300

400

500

600

Net sales

Outdoor Q1/2016 (Q1/2015)

22 April 20164

MEURMEUR

10.7

Q1/12 Q1/12Q1/13

256.5

Q1/13

14.2

Q1/14

266.5

Q1/14

Net sales EUR 374.4 million, +11%*

• Footwear +16%, Apparel +19%, Sports Instruments +14%

• Winter Sports Equipment -6%, Cycling -2%

EBIT excl. IAC EUR 37.7 million (21.4) driven by sales growth and improved

gross margin

Q1/15

287.5

Q1/15

9.5

Q1/16

341.9

Q1/16

21.4

374.437.7

*In local currencies

-5

0

5

10

15

20

25


Ball Sports Q1/2016 (Q1/2015)


• Broad-based growth in Team Sports further supported by Louisville Slugger

EBIT excl. IAC EUR 19.0 million (18.3) driven by sales growth

22 April 2016 Amer Sports Interim Report Presentation5 22 April 20165

MEUR

Q1/12 Q1/13 Q1/14

19.9

Q1/15

13.2

17.4 18.3

Q1/160

20

40

60

80

100

120

140

160

180

200

Net salesMEUR

Q1/12

150.7

Q1/13 Q1/14

164.1173.6

164.0

Q1/15 Q4/16

186.7

19.0


Fitness Q1/2016 (Q1/2015)


• Go-to-market integration completed, capabilities improved

• Strong pipeline of initiatives kicking in

EBIT excl. IAC EUR 0.3 million (1.3), slightly down due to factory start-up costs

for the new products and OPEX investments into digital acceleration

22 April 2016 Amer Sports Interim Report Presentation6 22 April 20166

0

20

40

60

80

100

120

140

Net sales

MEUR

Q1/12 Q1/12

59.7

Q1/13 Q1/13Q1/14 Q1/15

62.5

Q1/14

63.3

Q1/15Q1/16

69.9

Q1/16-5

0

5

10

15

20


3.90.3

-0.4

3.41.3

74.4


Acquisition of ENVE Composites

• ENVE is a fast-growing brand in high-end carbon wheels, components,

and accessories for road and mountain biking. Annual sales ~30 MUSD

• Acquisition price 50 MUSD

• Brings capabilities in carbon & operational scale and synergy benefits

• The acquisition was finalized on March 8

22 April 2016 Amer Sports Company Presentation7

OUTLOOK

Outlook for 2016


• In 2016, Amer Sports net sales in local currencies are expected

to increase and EBIT margin excluding items affecting

comparability to improve from 2015, despite challenging market

conditions.

• The company will focus on growing the core business and

accelerating in five prioritized areas: Apparel and Footwear, US,

China, Business to Consumer, as well as digitally connected

devices and services.

Prioritized, sequenced program continues

Prioritized, sequenced program continues

11

• 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%

Amer Sports Interim Report Presentation

APPENDIX

Net sales and EBIT breakdown

22 April 201614

* Excl. IAC

NET SALES

(MEUR)

Q1/

2016 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015 2014

Q4/

2014

Q3/

2014

Q2/

2014

Q1/

2014

Outdoor 374.4 1,530.1 501.9 476.6 209.7 341.9 1,371.2 456.7 452.2 174.8 287.5

Ball Sports 186.7 647.0 165.7 147.8 169.4 164.1 536.7 136.9 112.9 136.2 150.7

Fitness 74.4 357.3 116.1 89.3 82.0 69.9 320.8 111.7 80.7 65.1 63.3

Total 635.5 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5

EBIT

(MEUR)

Q1/

2016 2015*

Q4/

2015

Q3/

2015

Q2/

2015*

Q1/

2015* 2014*

Q4/

2014*

Q3/

2014*

Q2/

2014*

Q1/

2014

Outdoor 37.7 161.2 65.6 92.9 -18.7 21.4 125.6 55.0 83.1 -22.0 9.5

Ball Sports 19.0 46.6 8.2 8.8 11.3 18.3 35.9 12.5 3.9 6.3 13.2

Fitness 0.3 31.2 15.7 9.1 5.1 1.3 29.7 14.9 7.3 4.1 3.4

Headquarters -11.0 -26.9 -5.5 -7.3 -6.7 -7.4 -22.9 -4.7 -6.7 -6.0 -5.5

Total 46.0 212.1 84.0 103.5 -9.0 33.6 168.3 77.7 87.6 -17.6 20.6


Business area net sales


Q1/2016 Q1/2015 Ch % Ch %* 2015

Footwear 152.5 133.1 15 16 461.2

Apparel 104.5 91.9 14 19 387.2

Winter Sports Equipment 43.4 46.1 -6 -6 400.2

Cycling 39.7 40.4 -2 -2 138.5

Sports Instruments 34.3 30.4 13 14 143.0

Individual Ball Sports 89.2 88.7 1 1 315.4

Team Sports 97.5 75.4 29 28 331.6

Fitness 74.4 69.9 6 6 357.3

Total 635.5 575.9 10 11 2,534.4

*Change in local currencies

Net sales by region

22 April 201616

MEUR

Q1/

2016 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015 2014

Q4/

2014

Q3/

2014

Q2/

2014

Q1/

2014

EMEA 278.9 1,114.7 356.8 319.3 168.0 270.6 1,064.0 336.9 321.9 156.1 249.1

Americas 267.1 1,070.1 313.2 302.0 224.7 230.2 874.3 270.1 249.0 166.0 189.2

Asia

Pacific 89.5 349.6 113.7 92.4 68.4 75.1 290.4 98.3 74.9 54.0 63.2

Total 635.5 2,534.4 783.7 713.7 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5


Sales development by region in Q1/2016

Outdoor


Fitness Total

EMEA Americas APAC

Ball Sports

EMEA Americas APAC Total

MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %*

Outdoor 225.2 4 91.1 21 58.1 27 374.4 11

Ball Sports 39.2 7 128.2 19 19.3 -2 186.7 14

Fitness 14.5 -2 47.8 4 12.1 29 74.4 6

Total 278.9 4 267.1 17 89.5 19 635.5 11

* Change in local currencies

374.4 186.7 74.4 635.5

16%

60%

68%

24%

10%21%

69%

17%19%

64%

14%44%

42%

Balance sheet


MEUR

March 31,

2016

March 31,

2015

Goodwill and other intangible non-current assets 644.8 538.7

Tangible non-current assets and other non-current assets 335.9 317.8

Inventories and work in progress 471.1 417.7

Receivables 660.8 707.9

Cash and cash equivalents 292.9 254.3

Shareholders’ equity 857.1 876.4

Interest bearing liabilities 831.2 699.5

- Long-term 724.8 399.5

- Current 106.4 300.0

Other liabilities 717.2 660.5

Total 2,405.5 2,236.4

Impact of new ESMA guidelines

New ESMA (European Securities and Markets Authority) guidelines

on Alternative Performance Measures (APMs) are effective for the

financial year 2016. Amer Sports presents APMs to reflect the

underlying business performance and to enhance comparability

between financial periods. APMs should not be considered as a

substitute for measures of performance in accordance with the IFRS.

As of Q1 2016, Amer Sports relabels the previously referenced

"excluding non-recurring items" with "excluding items affecting

comparability” (IAC). Operating segments’ EBIT is reported excluding

IAC. Items affecting comparability and APMs used by Amer Sports

are defined in note 10 of the Q1 interim report.

22 April 2016 Amer Sports Company Presentation19

Contact information

• Heikki Takala, President and CEO

Tel. +358 20 712 2510

• Jussi Siitonen, CFO

Tel. +358 20 7122511

• Päivi Antola, Director, Corporate Communications and IR

Tel. +358 20 712 2537

www.amersports.com

22 April 201620 Amer Sports Interim Report Presentation

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

22 April 201621 Amer Sports Interim Report Presentation

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