Amer Sports - Interim report (Q1 and Q3)

Amer Sports Corporation Interim Report January-September 2016

Amer Sports Corporation
INTERIM REPORT
October 20, 2016 at 1:00 p.m.

Amer Sports Corporation Interim Report January-September 2016

JULY-SEPTEMBER 2016

  * Net sales EUR 736.8 million (July-September 2015: 713.7). In local
    currencies, net sales increased by 4%. Organic growth was 4%. Growth was
    solid in EMEA and China, whilst the US market continued to be challenging.
  * Gross margin 48.0% (47.0).
  * EBIT excluding items affecting comparability (IAC) EUR 106.5 million
    (103.5). Items affecting comparability were EUR -2.4 million (0.0).
  * Earnings per share excl. IAC EUR 0.62 (0.59). Earnings per share were EUR
    0.60 (0.59).
  * Free cash flow EUR -66.9 million (-92.2).
  * Outlook for 2016 unchanged.

JANUARY-SEPTEMBER 2016
  * Net sales EUR 1,849.7 million (January-September 2015: 1,750.7). In local
    currencies, net sales increased by 7%. Organic growth was 6%.
  * Gross margin 46.9% (45.9).
  * EBIT excluding items affecting comparability EUR 140.4 million (128.1).
    Items affecting comparability were EUR -8.7 million (-8.0).
  * Earnings per share excl. IAC EUR 0.73 (0.63). Earnings per share were EUR
    0.67 (0.58).
  * Free cash flow EUR -88.4 million (-37.7).

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                       7-9/2016 7-9/2015 1-9/2016 1-9/2015    2015
-----------------------------------------------------------------------------
Net sales                            736.8    713.7  1,849.7  1,750.7 2,534.4

Gross profit                         353.3    335.2    868.4    802.9 1,145.9

  Gross profit %                      48.0     47.0     46.9     45.9    45.2

EBITDA excl. IAC*)                   122.3    116.9    185.1    164.7   263.2

EBIT excl. IAC                       106.5    103.5    140.4    128.1   212.1

EBIT % excl. IAC                      14.5     14.5      7.6      7.3     8.4

IAC**)                                -2.4        -     -8.7     -8.0    -8.0

EBIT                                 104.1    103.5    131.7    120.1   204.1

EBIT %                                14.1     14.5      7.1      6.9     8.1

Financing income and expenses         -8.0     -7.7    -23.9    -25.4   -36.1

Earnings before taxes                 96.1     95.8    107.8     94.7   168.0

Net result                            70.5     69.1     79.0     68.3   121.6

Earnings per share excl. IAC, EUR     0.62     0.59     0.73     0.63    1.09

Free cash flow***)                   -66.9    -92.2    -88.4    -37.7   121.7

Equity ratio, % at period end                           35.3     36.6    37.2

Net debt/equity at period end                           0.73     0.70    0.48

Personnel at period end                                8,554    7,981   7,954

Average rates used, EUR/USD           1.12     1.11     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:
We delivered another quarter of solid improvement despite a challenging trading
environment especially in the US following the retailer bankruptcies earlier in
the year. The growth was driven by our strategic acceleration priorities,
especially Apparel, Business to Consumer, China, and Connected Devices. In
Winter Sports Equipment the quarter was good as deliveries peaked earlier
compared to 2015. In Fitness we started to produce our new product ranges, but
the topline impact is expected in Q4 and increasingly in H1 2017.

As announced in August, we focus on accelerating our organic growth with a
robust pipeline of building blocks to reach EUR 3.5 billion sales by 2020. The
market landscape is changing, and we will pace our growth accordingly. We are
confident that our strategies are right, we stay the course and focus on
executing with excellence and agility.


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
A conference call for investors and analysts will be held at 3:00 p.m. Finnish
time. To participate, please call +44(0)20 3427 1906 or +49(0)69 2222 10619,
confirmation code 9912166. The conference can also be followed live via
www.amersports.com or http://edge.media-server.com/m/p/xry4o9k8. A replay of the
conference call and a transcript will be available later at the same internet
address. The replay numbers are +44(0)20 3427 0598 and +49(0)69 2222 2236,
passcode 9912166.

FINANCIAL STATEMENTS BULLETIN 2016
Amer Sports will publish its financial statements bulletin 2016 on Thursday,
February 9, 2017 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).


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Bifogade filer:

Amer Sports Interim Report Q3 2016.pdf