Accelerating toward Amer Sports CMD 2015 // Heikki Takala, President & CEO

Transcription

1 Accelerating toward 2020 // Heikki Takala, President & CEO

2 What we will do today Confirm that our strategies are working Present a new strategic glidepath and building blocks for acceleration toward 2020 Provide logic for the new financial targets and demonstrate the attractiveness of the acceleration 2

3 High level performance assessment

4 We have turned around the company Net Sales (EUR) EBIT Margin 2 800m 10.0 % 2 600m 2 400m 8.0 % 2 200m 6.0 % 2 000m 1 800m 4.0 % 1 600m 1 400m 1 200m * 2.0 % 0.0 % Balance sheet stepchanged (Net Debt / EBITDA 2x) Net Sales EBIT Margin *Vara consensus

5 Strategic building blocks: What has worked Achievement Apparel & Footwear growth 300m x3 Arc'teryx growth Salomon growth & transformation ~50% softgoods x4 Sales x2 ~70% softgoods Winter Sports Equipment gross margin ~40% ~46% Suunto turnaround Precor turnaround Mavic Wilson Team Sports B2C growth China growth Connected devices growth EBIT negative EBIT negative Low EBIT Low EBIT Sales x2 EBIT-% ~10 Sales x2 EBIT-% ~10 Sales x1.5 EBIT-% ~10 Sales x2 EBIT-% ~10 ~6% of the Group x7 ~7% of the Group 5

6 What has been challenging Winter Sports Equipment and Individual Ball Sports: both restructured, now solid progress Russia and Latin America Cash flow target not achieved due to high working capital Small brands, small categories: Bonfire, Nikita divested 6

7 Conclusions 1. Our strategies are working Core business is healthy Acceleration has been on-going in selected growth areas 2. We are no longer a turn-around company However, we treat any under-performing unit as such 3. We are well equipped for further acceleration 7

8 We follow our Sustainable Growth Model

9 Amer Sports Sustainable Growth Model (SGM) 1. Annual topline growth Both organic and via strategic acquisitions 2. Annual profit improvement Profit can come from growth or through cost cutting. We prefer growth with cost discipline. 3. Investing for the future To sustain future growth, we invest every year back into the business 4. Continuous renewal Toward faster growth, higher profitability, better asset efficiency 9

10 Amer Sports portfolio logic Amer Sports is A balanced sports equipment and apparel & footwear company, with a unique model of leveraging our authentic brands An integrated company: portfolio composition is determined by synergies and Amer Sports being the right owner : Every part of the Group contributes to the synergies. Right owner = we develop our units performance relatively better vs. competition and/or we create competitive advantage through the portfolio Our ambition: on the podium in the chosen Where to Play areas 10

11 Now we accelerate

12 Toward glidepath at 5% growth rate until 2020 would take us to EUR ~3 billion sales like for like 10% EBIT margin However, we now focus on acceleration Platforms and capabilities largely in place, scaling up provides attractive returns Keeping momentum in the core, accelerating in selected areas 12

13 We have chosen 5 acceleration areas Topic 2009 Glidepath to 2015/16 Acceleration to Apparel & Footwear 300 m ~1000 m ~1500 m 2. USA $ 700 m $ ~1000 m $ ~1500 m 3. China 13 m ~100 m ~200 m 4. B2C 20 m ~200 m ~400+ m 5. Connected Devices & Services 0 m ~300 m ~600+ m Net impact: ~ m (net of duplication) 13

14 Apparel and Footwear: Toward EUR 1.5 billion Why this choice: Market attractive, two strong brands in the portfolio, repeatable model built Building blocks: Arc teryx in full acceleration across consumer segments and channels Salomon Footwear: global expansion, new consumer segments Apparel: profitable growth in core segments Other supporting growth drivers: B2C, Mavic, and Wilson 14

15 Arc teryx: In full acceleration 15

16 Salomon: Growing in and from the core 16

17 Wilson & Mavic: Adding more 17

18 USA: Toward USD 1.5 billion Why this choice: World s largest market, dynamic, Amer Sports scalable model in place Building blocks: Apparel and Footwear Focused Ball Sports acceleration, especially Baseball Acceleration in Fitness New scalable Go to Market model, including B2C 18

19 China: Toward 200 MEUR Why this choice: Dynamic, growing sports and outdoor market; Amer Sports capability built; profitable business model Building blocks: Disproportionate growth in Apparel, Footwear, Sports Instruments and Fitness Disciplined expansion in key cities Own retail and e-commerce Significant capability investment 19

20 B2C: Toward 400+ MEUR Why this choice: High growth, higher margin, proven business model Building blocks: Own retail: 260+ stores, annual net opening of 20+ stores E-commerce: 60+ stores with on-going expansion, driving traffic and conversion through Amer Sports Digital Ecosystem Apparel and Footwear the main drivers for B2C (20% of softgoods sales) Piloting B2C in other categories enabled by customization 20

21 Examples of Arc teryx store expansion in H2 LONDON Piccadilly NYC Soho SHANGHAI Hong Kong Square 21

22 Example: Consumer engagement through customization 22

23 Connected Devices & Services: Toward 600+ MEUR Why this choice: Major market trend; unique Amer Sports Digital Ecosystem in place Building blocks: Suunto and Precor: strong pipeline of product launches and digital services Sports Tracker: integration and scale-up for cross-selling New concepts: digital basketball & football, sensor integration Amer Sports Connected Digital Ecosystem ramp-up 23

24 Amer Sports Connected Digital Ecosystem, now in full acceleration 24

25 Summary

26 Summary What stays the same: Sustainable Growth Model, portfolio logic, and strategic priorities What changes: Higher growth ambition and new glidepath time horizon Acceleration of the prioritized building blocks Acquisitions now part of the growth model Rationale: We have the track-record, and we have tremendous upside potential for further growth at attractive returns 26

27 Prioritized, sequenced program continues Net sales 3.5 BEUR, improving EBIT-% Net sales 1.5 BEUR, EBIT-% 4% Net sales 2+ BEUR, EBIT-% 7% New strategy Transformation from Hardgoods to Hybrid Drive organic growth Operational excellence Net sales ~2.5 BEUR, EBIT-% toward 10% Sustainable Growth Model Integration Acquisition readiness On-going renewal and acceleration Continuous portfolio transformation toward: Faster growth Higher profitability Asset efficiency ~ ~ ~

28

29 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. 29