Amer Sports - Half Year financial report

Amer Sports Half Year Financial Report January-June 2016

Amer Sports Corporation
STOCK EXCHANGE RELEASE
July 28, 2016 at 1:00 p.m.

Amer Sports Half Year Financial Report January-June 2016

APRIL-JUNE 2016
  * Net sales EUR 477.4 million (April-June 2015: 461.1). In local currencies,
    net sales increased by 6%. Organic growth was 5%, driven by Footwear and
    Apparel.
  * Gross margin 44.7% (44.1).
  * EBIT EUR -12.1 million (-9.0 excluding items affecting comparability, IAC).
  * Net sales and profitability were adversely impacted by the US customer
    bankruptcies.
  * Earnings per share EUR -0.13 (-0.11 excluding IAC).
  * Free cash flow EUR -54.3 million (11.5) due to seasonal fluctuation.
  * Outlook for 2016 unchanged.

JANUARY-JUNE 2016
  * Net sales EUR 1,112.9 million (January-June 2015: 1,037.0). In local
    currencies, net sales increased by 9%. Organic growth was 6%.
  * Gross margin 46.3% (45.1).
  * EBIT excluding IAC EUR 33.9 million (24.6). Items affecting comparability
    were EUR -6.3 million (-8.0).
  * Earnings per share excluding IAC EUR 0.11 (0.04).
  * Free cash flow EUR -21.5 million (54.5).

OUTLOOK
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.

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 this report.


KEY FIGURES
EUR million                          4-6/2016 4-6/2015 1-6/2016 1-6/2015    2015
--------------------------------------------------------------------------------
Net sales                               477.4    461.1  1,112.9  1,037.0 2,534.4

Gross profit                            213.6    203.5    515.1    467.7 1,145.9

  Gross profit %                         44.7     44.1     46.3     45.1    45.2

EBITDA excl. IAC*)                        1.5      2.3     62.8     47.8   263.2

EBIT excl. IAC                          -12.1     -9.0     33.9     24.6   212.1

EBIT % excl. IAC                                            3.0      2.4     8.4

IAC**)                                      -     -6.6     -6.3     -8.0    -8.0

EBIT                                    -12.1    -15.6     27.6     16.6   204.1

EBIT %                                                      2.5      1.6     8.1

Financing income and expenses            -8.0     -9.4    -15.9    -17.7   -36.1

Earnings before taxes                   -20.1    -25.0     11.7     -1.1   168.0

Net result                              -14.7    -18.0      8.5     -0.8   121.6

Earnings per share excluding IAC,
EUR                                     -0.13    -0.11     0.11     0.04    1.09

Free cash flow***)                      -54.3     11.5    -21.5     54.5   121.7

Equity ratio, % at period end                              35.8     37.7    37.2

Net debt/equity at period end                              0.70     0.68    0.48

Personnel at period end                                   8,514    7,880   7,954

Average rates used, EUR/USD              1.13     1.10     1.12     1.12    1.11

*) EBITDA excl. IAC = EBIT excluding items affecting comparability and
depreciation and amortization
**) Items affecting comparability are material items or transactions, which are
relevant for understanding the financial performance of Amer Sports when
comparing profit of the current period with previous periods. These items can
include, but are not limited to, capital gains and losses, significant write-
downs, provisions for planned restructuring and other items that are not related
to normal business operations from Amer Sports' management view. A single item
affecting comparability has to represent more than one cent per share on annual
basis.
***) Cash flow from operating activities - net capital expenditures - change in
restricted cash (Net capital expenditures: Total capital expenditure less
proceeds from sale of assets).


HEIKKI TAKALA, PRESIDENT AND CEO:
The second quarter is traditionally our smallest, however we delivered a solid
6% growth despite short-term adverse business impact due to US customer
disruptions, which impacted especially Ball Sports. During the quarter we
executed a significant distribution center expansion in both the US and EMEA,
and moved Arc'teryx into a larger production facility in Canada. These changes
added short-term CAPEX and OPEX, however they support our mid/long-term growth.

Our outlook for the year remains positive, supported by robust pre-orders in
most businesses, with the exception of Winter Sports Equipment where we expect a
modest decline following the challenging previous winters. Our initiative
pipeline for the Fall/Winter season is stronger than ever with strong joint
business plans with our retail partners, continuous B2C expansion, and a robust
innovation rollout across the brands.

For further information, please contact:
Heikki Takala, President and CEO, tel. +358 20 712 2510
Jussi Siitonen, CFO, tel. +358 20 712 2511
Päivi Antola, Director, Corporate Communications and IR, tel. +358 20 712 2537


TELEPHONE CONFERENCE
An English-language conference call for investors and analysts will be held at
3:00 p.m. Finnish time. To participate in the conference call, please call
+44(0)20 3427 1918 or +49(0)69 2222 10622, passcode 1763874. The conference can
also be followed live via http://edge.media-server.com/m/p/oi4d7gfc. A replay of
the conference call and a transcript will be available later. The replay number
is +44(0)20 3427 0598 or +49(0)69 2222 2236, passcode 1763874.

CAPITAL MARKETS DAY
Amer Sports is hosting a Capital Markets Day for analysts and institutional
investors in Helsinki on September 1, 2016.

THIRD QUARTER RESULTS BULLETIN
Amer Sports will publish its Q3/2016 results bulletin on Thursday, October
20, 2016 at approximately 1:00 p.m. Finnish time.

INVESTOR RELATIONS NEWSLETTER
Subscribe to Amer Sports Investor Relations Newsletter at
www.amersports.com/investors/subscribe.
DISTRIBUTION
Nasdaq Helsinki, main media, www.amersports.com

AMER SPORTS
Amer Sports (www.amersports.com) is a sporting goods company with
internationally recognized brands including Salomon, Wilson, Atomic, Arc'teryx,
Mavic, Suunto, and Precor. The company's technically advanced sports equipment,
footwear, and apparel improve performance and increase the enjoyment of sports
and outdoor activities. The Group's business is balanced by its broad portfolio
of sports and products and a presence in all major markets. Amer Sports shares
are listed on the Nasdaq Helsinki stock exchange (AMEAS).



[HUG#2031392]

Attachments:

Amer Sports Half Year Financial Report 2016.pdf