Amer Sports 2016 A year of record sales and profit, …...Fitness 2016 (2015) Net sales EUR 349.2 million, -4%* • Delayed impact of some product launches. EBIT excl. IAC EUR 17.0

Amer Sports

2016 – A year of record sales and profit, and a year of external challengesFebruary 9, 2017 – Heikki Takala, President and CEO

Q4 2016: In a challenging market, we continued to pace our growth

• Net sales EUR 772.4 million (783.7 ), -2%*

– Solid growth in Apparel

– Postponed launches in Sports Instruments, delayed impact from launches in Fitness

– Winter Sports Equipment and Footwear deliveries peaked earlier in the year

• Gross margin 44.7% (43.8%)

• EBIT excl. IAC EUR 81.3 million (84.0)

– Investments into 2020 acceleration priorities continued

• Free cash flow EUR 152.8 million (159.4)

9 February 2017 Amer Sports Financial Statements2

* In local currencies

Net sales by Business Unit in Q4


MEUR Q4/2016 Q4/2015

Ch

%

Ch

%*

Footwear 96.4 100.5 -4 -3

Apparel 131.5 118.6 11 10

Winter Sports Equipment 188.5 201.3 -6 -8

Cycling 38.2 35.2 9 8

Sports Instruments 36.1 46.3 -22 -22

Individual Ball Sports 67.9 68.1 0 -1

Team Sports 104.0 97.6 7 5

Fitness 109.8 116.1 -5 -5

*In local currencies

2016: Record net sales, gross margin and EBIT

• Net sales EUR 2,622.1 million (2,534.4), +4%*. Organic

growth +3%*

• Gross margin 46.3% (45.2%), OPEX 38.2% (37.1%)

• EBIT EUR 221.7 million (212.1), EBIT margin 8.5% (8.4%)**

• Free cash flow EUR 64.4 million (121.7), 51% of net profit

• Capital repayment proposal EUR 0.62 per share (dividend

0.55)


* In local currencies

** Excl. IAC

Net sales by Business Unit in 2016


MEUR 2016 2015

Ch

%

Ch

%*

Footwear 490.5 461.2 6 8

Apparel 431.1 387.2 11 13

Winter Sports Equipment 388.5 400.2 -3 -4

Cycling 150.2 138.5 8 8

Sports Instruments 141.5 143.0 -1 0

Individual Ball Sports 299.8 315.4 -5 -4

Team Sports 371.3 331.6 12 12

Fitness 349.2 357.3 -2 -1


B2C and Digital acceleration main OPEX growth drivers, maintenance down

Amer Sports Financial Statements6

15 29

4641

-5

814

23

68

FY-15FY-14

37

1

Investment driven

Topline driven

Maintenance driven

FY-16

66 Topline driven

• Sales/customer service personnel

• Sales commissions

• Retails stores (> 1year operative)

• Outbound freight

• Warehousing costs

• Marketing: sell-in, sell-through

• Warranties, bad debts

Investment driven

• R&D

• Sales personnel: distribution expansion

• New retail stores (< 1year operative)

• Digital platform

• Consumer marketing (acceleration)

Maintenance driven

• G&A

Cash Flow followed the historical pattern (excl. 2015)

09-02-2017 Amer Sports Financial Statements7

EURm

-150,0

-125,0

-100,0

-75,0

-50,0

-25,0

0,0

25,0

50,0

75,0

100,0

125,0

150,0

175,0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014 2015 2016

42.553.5

121.7

64.3

Balance sheet


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

Net debt 535.9 460.3

Shareholder’s equity 1,003.1 949.6

Capital employed 1,539.1 1,409.9

Working capital 487.6 508.9

Capital turnover 1.77 1.85

ROCE, % 14.9 15.5

Net debt/EBITDA 1.9 1.7

Net debt/equity 0.53 0.48

Equity ratio, % 36.9 37.2

What worked: we reached several milestones in 2016

• Softgoods +11% to EUR 1 billion, up by EUR 700 million vs. 7 years ago

– Arc’teryx +21% in 2016

• Business to Consumer +27% to EUR 200+ million (EUR 36 million in

2010)

– 27 new own stores opened, ~290 stores in total, ~70 e-commerce stores

• USA +6%, bypassed USD 1 billion

• China +26% to EUR 100+ million (EUR 16 million in 2010)

• Company Gross Margin all time high 46+%

• Winter Sports Equipment profitability improved further, despite several

mild winters


What did not work – and our solution

• Market slowdown

→ We pace our growth and protect gross margin

→ We continue strategic investments

→ We expand the 2016 restucturing program, ~100 EBIT

margin basis points in the next 24 months

• Sports Instruments product launches postponed, delayed impact

from Fitness launches

→ Pipeline and impact confirmed for Q2 onwards


Our pipeline of new initiatives is strong


20+ new stores

Warehouse capacity

improvement

Outlook

Outlook for 2017


• In 2017, Amer Sports’ net sales in local currencies are expected

to increase from 2016, despite short-term market softness. The

growth is expected to be biased to the second half of the year.

• The company will continue to focus on growing the core

business and the five prioritized areas: Apparel and Footwear,

US, China, Business to Consumer, as well as digitally connected

devices and services.

Accelerating toward 2020

The way forward: toward 2020

• Grow the core

• 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+)

• Ongoing investment into renewal and company transformation

9 February 201715 Amer Sports Financial Statements

APPENDIX

Record sales and operating profit


EUR million 2016 2015 Ch % Ch %*

Net sales 2,622.1 2,534.4 3 4

Gross profit 1,213.5 1,145.9 6

Gross profit, % of net sales 46.3 45.2

EBIT excluding IAC 221.7 212.1 5

EBIT % excluding IAC 8.5 8.4

IAC -16.9 -8.0

EBIT 204.8 204.1

Free cash flow 64.4 121.7

*) In local currencies

**) Cash flow from operating activities - net capital expenditures – change in restricted

cash (Net capital expenditures: Total capital expenditure less proceeds from sale of

assets).

Net sales and EBIT breakdown

9 February 201719

* Excl. IAC

NET SALES

(MEUR) 2016

Q4/

2016

Q3/

2016

Q2/

2016

Q1/

2016 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015

Outdoor 1,601.8 490.7 505.7 231.0 374.4 1,530.1 501.9 476.6 209.7 341.9

Ball Sports 671.1 171.9 147.0 165.5 186.7 647.0 165.7 147.8 169.4 164.1

Fitness 349.2 109.8 84.1 80.9 74.4 357.3 116.1 89.3 82.0 69.9

Total 2,622.1 772.4 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9

EBIT

(MEUR) 2016

Q4/

2016

Q3/

2016*

Q2/

2016

Q1/

2016* 2015*

Q4/

2015

Q3/

2015

Q2/

2015*

Q1/

2015*

Outdoor 196.9 69.7 105.5 -16.0 37.7 161.2 65.6 92.9 -18.7 21.4

Ball Sports 44.8 12.8 5.3 7.7 19.0 46.6 8.2 8.8 11.3 18.3

Fitness 17.0 6.8 5.4 4.5 0.3 31.2 15.7 9.1 5.1 1.3

Headquarters -37.0 -8.0 -9.7 -8.3 -11.0 -26.9 -5.5 -7.3 -6.7 -7.4

Total 204.8 73.1 106.5 -12.1 46.0 212.1 84.0 103.5 -9.0 33.6

Amer Sports Financial Statements


-40

-20

0

20

40

60

80

100

120

EBIT excluding items affecting comparability

0

100

200

300

400

500

600

Net sales

Outdoor 2016 (2015)

9 February 201720

MEURMEUR

41.7

Q4/12 Q4/12Q4/13

402.8

Q4/13

52.5

Q4/14

433.7

Q4/14

Net sales EUR 1,601.8 million, +5%*

• Apparel +13%, Footwear +8%

• Winter Sports Equipment -4% due to mild winters.

• Cycling +8%. Acquisition of ENVE Composites LLC.

• Sports Instruments at the level of 2015, postponed product launches.

EBIT excl. IAC EUR 196.9 million (161.2 )

Q4/15

456.7

Q4/15

55.0

Q4/16

501.9

Q4/16

65.6

490.769.7


-5

0

5

10

15

20

25


Ball Sports 2016 (2015)

Net sales EUR 671.1 million, +4*

• Growth in Team Sports, especially on baseball, was offset by challenging

market conditions in Individual Ball Sports and US customer bankruptcies

EBIT excl. IAC EUR 44.8 million (46.6)

9 February 2017 Amer Sports Financial Statements21 9 February 201721

MEUR

Q4/12 Q4/13 Q4/14

12.8

Q4/15

3.9

-1.0

12.5

Q4/160

20

40

60

80

100

120

140

160

180

200

Net salesMEUR

Q4/12

126.1

Q4/13 Q4/14

136.9127.7

Q4/15 Q4/16

165.7

8.2


171.9

Fitness 2016 (2015)

Net sales EUR 349.2 million, -4%*

• Delayed impact of some product launches.

EBIT excl. IAC EUR 17.0 million (31.2)

9 February 2017 Amer Sports Financial Statements22 9 February 201722

0

20

40

60

80

100

120

140

Net sales

MEUR

Q4/12 Q4/12

88.0

Q4/13 Q4/13Q4/14 Q4/15

97.6

Q3/14

111.7

Q4/15Q4/16

116.1

Q4/16-5

0

5

10

15

20


7.96.8

14.3 14.9 15.7

109.8


Net sales by region

9 February 201723

MEUR 2016

Q4/

2016

Q3/

2016

Q2/

2016

Q1/

2016 2015

Q4/

2015

Q3/

2015

Q2/

2015

Q1/

2015

EMEA 1,133.7 345.3 334.7 174.8 278.9 1,114.7 356.8 319.3 168.0 270.6

Americas 1,116.0 314.5 304.6 229.8 267.1 1,070.1 313.2 302.0 224.7 230.2

Asia

Pacific 372.4 112.6 97.5 72.8 89.5 349.6 113.7 92.4 68.4 75.1

Total 2,622.1 772.4 736.8 477.4 635.5 2,534.4 783.7 713.7 461.1 575.9


Outdoor

Sales development by region in 2016


Fitness Total

EMEA Americas APAC

Ball Sports

EMEA Americas APAC Total

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

Outdoor 935.5 3 429.6 9 236.7 7 1,601.8 5

Ball Sports 118.2 6 476.2 6 76.7 -5 671,1 4

Fitness 80.0 0 210.2 -4 59.0 6 349.2 -1

Total 1,133.7 3 1, 116.0 5 372,4 4 2,622.1 4

* Change in local currencies

1,601.8 671.1 349.2 2,622.1

15%

68%

11%18%

71%

17%23%

60%

14%43%

43%

58%

27%

Foreign currency translation difference


EUR million 2016 2015

Business Area Reported ReportedLocal

Currency

Translation

Difference

Footwear 490.5 461.2 455.0 -6.2

Apparel 431.1 387.2 382.0 -5.2

Winter Sports Equipment 388.5 400.2 403.3 3.1

Cycling 150.2 138.5 139.2 0.7

Sports Instruments 141.5 143.0 141.9 -1.1

Outdoor 1,601.8 1,530.1 1,521.5 -8.7

Individual Ball Sports 299.8 315.4 312.9 -2.5

Team Sports 371.3 331.6 330.9 -0.7

Ball Sports 671.1 647.0 643.8 -3.2

Fitness 349.2 357.3 353.7 -3.6

Total 2,622.1 2,534.4 2,519.0 -15.5

Free cash flow

9 February 201726

-150

-100

-50

0

50

100

150

200

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16

Free cash flow: Cash flow from operating activities - net capital expenditures – change in restricted cash

(Net capital expenditures: Total capital expenditure less proceeds from sale of assets).


Refinancing needs well covered


• Cash EUR 364.0 million and

unused committed facilities EUR

150 million (Dec 31, 2016)

• Commercial paper program in

size of EUR 500 million, out of

which EUR 49.9 million utilized

• No scheduled repayments of

long-term loans in 2017.

• Average interest rate of loan

portfolio 2.0% (Dec 31, 2015

2.7%)

0,0

50,0

100,0

150,0

200,0

250,0

300,0

Bonds

Bank loans

CommercialPapers

Other

Next 12 months net cash flows and related hedges, main FX pairs


Main FX pairs Hedge

%

Next 12mth

flow (EURm)

Spot

(@31.12.16)

Hedge

FX ’17

Hedge

FX’18

USD purchases against EUR 100% -399 1.05 1.13 1.12

USD sales against EUR 100% +65 1.05 1.11 1.07

GBP sales against EUR 100% +80 0.86 0.80 0.86

CHF sales against EUR 100% +51 1.07 1.08 1.06

USD (net)purchases against CAD 100% -87 1.35 1.32 -

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


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


Documents

Amer Sports 2016 A year of record sales and profit, …...Fitness 2016 (2015) Net sales EUR 349.2 million, -4%* • Delayed impact of some product launches. EBIT excl. IAC EUR 17.0