Reigniting profitable growth. Heikki Takala President and CEO

Transcription

1 Reigniting profitable growth Heikki Takala President and CEO 1

2 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 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.

3 Agenda Brief introduction and background Financial performance in a nutshell New financial targets Group development priorities: cornerstones Phasing of Group development in the coming years Summary First round of Q&A Finance overview Business Segment / Area presentations 3

4 Amer Sports in brief Revenue EUR ~1.5 billion (2009) One of the leading sports equipment companies in the world #1 or #2 in many sports equipment categories Strong brand portfolio Positioned to benefit from long term trends Net sales by business (2009) 12 % 6% 4% 7 % 13% 14% 24% 20% Winter Sports Equipment Apparel and Footwear Racquet Sports Fitness Team Sports Cycling Sports Instruments Golf 4

5 Financial performance in Lack of growth Profitability below targets Balance sheet strengthened in

6 Current year improvement under way Clear improvement in H1/2010 compared to H1/2009 Net sales EUR million (640.0), +5% in local currencies Sales up particularly in Apparel and Footwear, Team Sports and Golf EMEA and APAC both +9% EBIT EUR -7.4 million (-36.3), up 28.9 million Higher gross margins, increased sales volumes Pre-orders up in Winter Sports Equipment and Apparel and Footwear Amer Sports expects its 2010 net sales to be approximately EUR 1.7 billion and EBIT margin to improve to the mid-single-digit level 6 Change % in local currencies

7 Time to reignite profitable growth 1. Current year lays the foundation to build on 2. Glide paths and building blocks in place for Top line and Bottom line growth 7

8 New financial targets to drive profitable growth Targets aligned with the strategy Increased focus on cash flow and balance sheet structure Drive both profitable and cash flow effective growth 8

9 New long-term financial targets Year end net debt / EBITDA ratio of 3 or less. Growth Delivering organic, currency-neutral annual growth of 5%. Capital structure Dividend and share price performance Profitability Annual free cash flow equal to net profit. Cash flow EBIT of at least 10% of net sales 9

10 Towards big brands, big categories, big countries Group development priorities Clear portfolio roles and synergies, integrated company Grow faster in softgoods Win with consumers Win in go-to-market Operational excellence 10

11 Clear portfolio roles and synergies, integrated company 11

12 Every part of the Group has a clear role, targets and action plan Business area Objective Actions Apparel and Footwear Winter Sports Equipment Ball Sports Fitness Cycling Sports Instruments Further accelerating growth To sustainable profitability, irrespective of weather conditions Focus on profitable growth Back to profitability Improve profitability, continue organic growth Improve profitability, back to the organic growth path Expanding commercial footprint Entering new segments and categories Category based operation Operational excellence Growth in selected areas Growth from softgoods, DeMarini, distribution Improvement through topline growth in EMEA, APAC, NA consumer, networked fitness Expanding wheel/tyre systems and rider equipment offering Focusing of product portfolio, growth in selected areas 12

13 Driving scale and synergy Most synergies in Ball Sports, Apparel and Footwear and Winter Sports Equipment Sporting goods retail, Asian sourcing, softgoods, go-to-market R&D, marketing, manufacturing Distinct characteristics in Precor, Mavic and Suunto Distinct customers, channels, production, sourcing; different business models Synergies and sharing where it makes sense 13

14 Pragmatic approach to synergies Synergistic businesses A&FW, Ball Sports, WSE Portfolio businesses Sales & Channel / regions & countries Supply chain and enabling functions Full scale & synergy drive in the Group s integration and platform development efforts, including softgoods growth. One company, focus of the development. First focus on improving profitability; synergy where it makes sense 14

15 Focus on profitable organic growth Every business has to deliver the assigned targets Focus on internal improvement and organic growth Acquisitions/divestments remain in the toolbox Capabilities, technologies etc. for accelerated growth Solutions for underperforming businesses 15

16 16 Grow faster in softgoods

17 Big growth potential in softgoods Overall an attractive, growing market We have a track record in Apparel and Footwear We can accelerate growth of our brands with softgoods: Salomon, Arc teryx, Wilson Other brands offer further opportunities Apparel and Footwear net sales 2006 H1/ H1/2010 H2 H1 17

18 Organizing for softgoods growth Move to category based development across brands to build scale R&D, product line management, sourcing & manufacturing Strengthen resources and capabilities significantly 18

19 Win with consumers 19

20 Win with consumers Set up regional Consumer Operations to better understand and deliver against local consumer needs Build a Group level Marketing Function for systematic consumer understanding and Brand Management capabilities

21 Win go-to-market Win with consumers Win with consumers 21

22 Build winning commercial fundamentals Increase commercial footprint: number and quality of doors Major distribution / scale opportunities, already with current products Consumer understanding and locally adapted products increase potential further Deeper collaboration with customers Clearly defined KPIs Emerging markets growth Business to consumer Own retail to drive awareness, trial, brand equity and sales e-commerce Fill critical roles and strengthen capabilities 22

23 Operational excellence 23

24 Systematic improvement every day Gross margin development Gross profit percentage up by 4 points H1/2010 vs. H1/2009 Progress in supply chain development Customer service improvement Further DSI efficiency Leveraging scale in logistics, IT and sourcing Functional excellence with clear KPI s across all areas: tracking and performance management 24

25 Major operational intervention in Winter Sports Equipment Objective: reduce weather dependency by significantly lowering the break-even point Focus program, covering all elements of the value chain: R&D, operations, supply, logistics 25

26 26 Phasing of Group development

27 Prioritized, sequenced program Build critical capabilities, allocate resources and reignite growth Profitability, growth acceleration ~2013- Clarify future direction & deliver the year ~2010 Clarify priorities, set direction Continue to drive profit recovery, deliver the year Continue the work on operational effiency & margins improvement ~ Build capabilities: Softgoods Category based development Go-to-market Drive organic growth: Softgoods, Russia, China, BtoC, etc. Operational excellence, WSE efficiency & profitability Continued growth in categories and countries Big brands, big countries, big categories 27

28 28 Summary

29 Towards big brands, big categories, big countries We have clear portfolio roles and approach to synergies We will further accelerate growth in softgoods We are organizing for better consumer understanding We will build our commercial fundamentals to win in go-to-market We continue driving and further tightening our operational excellence 29