2009-09-28 17:30:00 CEST
2009-09-28 17:32:00 CEST
REGULATED INFORMATION
Amer Sports - Half Year financial report
Re-publication of Amer Sports Corporation's Interim Report
STOCK EXCHANGE RELEASE
September 28, 2009 at 6:30 pm
In connection with the preparation of the offering circular to be
published in relation for its rights offering, Amer Sports
Corporation ("Amer Sports") has supplemented its interim report for
the second quarter ended June 30, 2009, which was first published on
August 6, 2009, to correspond to certain requirements related to
notes to the interim report as set out in IAS 34. For clarity, Amer
Sports has decided to re-publish the entire interim report in
question, and it is presented below in full.
The notes to Amer Sports' interim report for the second quarter ended
June 30, 2009 have been grouped as their own separate item and they
include the following additions as compared to previously announced
information:
* a description of IFRS standards adopted in 2009 has been
added to the accounting policies section;
* the segment information has been supplemented with
information on segment assets and a reconciliation to earnings
before taxes (EBT); and
* descriptions of distribution of dividends and seasonality
of the operations have been added.
In addition, tables relating to the development of the business
segments' net sales and EBIT on a quarterly basis for the two years
preceding the reporting period have been moved before the table
section of the interim report.
Amer Sports also updated its market outlook for 2009 in a separate
stock exchange release on September 1, 2009, which information
updates the outlook presented below.
AMER SPORTS CORPORATION INTERIM REPORT JANUARY-JUNE 2009 (IFRS)
* Amer Sports net sales of EUR 640.0 million were at last
year's level. In local currencies net sales decreased by 7%. Net
sales decreased by 14% in the Americas, increased by 2% in EMEA and
decreased by 2% in Asia Pacific.
* EBIT was EUR -36.3 million (-7.8). Earnings per share were
EUR -0.49 (-0.23). The weakened results reflect the challenging
market conditions, particularly in the US. Last year's result
includes a capital gain of EUR 13 million from selling the
company's corporate headquarters building.
* Amer Sports' market outlook has not materially changed
during the second quarter and the market will remain challenging
during the rest of the year.
* Amer Sports' EBIT for the full-year 2009 will be below
last year's level. The expected improvement in Winter Sports
Equipment due to previously implemented cost efficiency measures is
more than offset by weakness in Amer Sports' other businesses. (On
June 17, 2009 Amer Sports announced that its full-year result will
weaken from last year.)
Q2/ Q2/ Change 1-6/ 1-6/ Change
EUR million 2009 2008 % %*) 2009 2008 % %*) 2008
Net sales 284.7 285.1 0 -6 640.0 648.1 -1 -7 1,576.6
Gross profit 108.4 116.9 -7 -13 252.2 262.5 -4 -9 633.0
EBIT -29.4 -7.8 -36.3 -7.8 78.9
Financing income
and
expenses -1.5 -7.4 -9.0 -14.3 -33.3
Earnings before -30.9 -15.2
taxes -45.3 -22.1 45.6
Net result -23.2 -11.4 -34.0 -16.6 34.0
Earnings per share,
EUR -0.34 -0.16 -0.49 -0.23 0.47
*) Change in local currency terms
ROGER TALERMO, PRESIDENT AND CEO:"Market conditions in the sporting goods industry during the second
quarter remained as difficult as during the start of the year. The US
market continued to suffer more than the European market and in
general, there is less demand for high-ticket items. This was evident
in both our Fitness and Golf businesses that saw the largest sales
decline within Amer Sports."Then again, the demand for low-ticket items has remained healthy. We
managed to improve our strong growth rate during the second quarter
in our Apparel and Footwear business. Our pre-orders in Winter Sports
Equipment for the next season are at last year's level thanks to
market share gains in Europe."It's evident that in the current challenging times, we have to
continue to adjust our structure in order to protect our bottom line.
I'm convinced that we can create substantial efficiency gains by
further reorganizing and developing our global sales and channel
management and by developing our global supply chain and IT
platforms. A new management model was introduced in June in order to
ensure a successful execution of this next step in our strategy."As we have stated earlier, our key priority in 2009 is on
strengthening our balance sheet, and in order to achieve this we are
ready to consider all necessary measures. Our programs in reducing
inventories and receivables are progressing as planned."
NET SALES AND EBIT IN APRIL-JUNE
Amer Sports net sales of EUR 284.7 million were at last year's level
(285.1). In local currencies, net sales decreased by 6%.
Net sales by business segment were as follows: Winter and Outdoor
37%, Ball Sports 48% and Fitness 15%. Sales in Winter and Outdoor
increased by 2% and in Ball Sports by 4%. Net sales of Fitness
decreased by 15%. In local currency terms, Winter and Outdoor net
sales were at last year's level, Ball Sports sales decreased by 4%
and Fitness sales decreased by 23%.
The split of net sales by geographical segment was as follows: the
Americas 49%, EMEA 38% and Asia Pacific 13%. Sales in the Americas
and EMEA were at last year's level and increased 6% in Asia Pacific.
In local currency terms, net sales decreased 12% in the Americas,
increased by 2% in EMEA and decreased 4% in Asia Pacific.
The Group's EBIT was EUR -29.4 million (-7.8). The weakened result
reflects more challenging market conditions, particularly in the US.
Last year's result includes a capital gain of EUR 13 million from
selling the company's corporate headquarters building.
Earnings before taxes were EUR -30.9 million (-15.2). Earnings per
share were EUR -0.34
(-0.16). Net financial expenses amounted to EUR 1.5 million (7.4) and
they included EUR 3.9 million unrealized foreign exchange gains.
NET SALES AND EBIT IN THE REVIEW PERIOD, JANUARY-JUNE
Amer Sports net sales of EUR 640.0 million were at last year's level
(648.1). In local currencies, net sales decreased by 7%.
Net sales by business segment were as follows: Winter and Outdoor
42%, Ball Sports 44% and Fitness 14%. Winter and Outdoor sales
increased by 2% and were at last year's level in Ball Sports. Net
sales of Fitness decreased by 15%. In local currency terms, Winter
and Outdoor net sales were at last year's level, Ball Sports
decreased by 6% and Fitness decreased by 24%.
The split of net sales by geographical segment was as follows: the
Americas 47%, EMEA 42% and Asia Pacific 11%. Sales decreased in the
Americas by 4%, were at last year's level in EMEA and increased 7% in
Asia Pacific. In local currency terms, net sales decreased by 14% in
the Americas, increased by 2% in EMEA and decreased by 2% in Asia
Pacific.
The Group's EBIT was EUR -36.3 million (-7.8). The weakened result
reflects more challenging market conditions particularly in the US.
Last year's result includes a capital gain of EUR 13 million from
selling the company's corporate headquarters building.
Earnings before taxes were EUR -45.3 million (-22.1). Earnings per
share were EUR -0.49
(-0.23). Net financial expenses amounted to EUR 9.0 million (14.3)
and they included EUR 4.6 million unrealized foreign exchange gains.
CAPITAL EXPENDITURE
The Group's capital expenditure on fixed assets totaled EUR 15.1
million (15.4). The Group's depreciation was EUR 16.8 million (17.2).
RESEARCH AND DEVELOPMENT
EUR 26.4 million (28.2) was invested in research and development,
representing 4.1% of net sales.
FINANCIAL POSITION AND CASH FLOW
Amer Sports' interest bearing liabilities at the end of June were EUR
556.6 million (537.1), consisting of short-term debt of EUR 144.0
million and long-term debt of EUR 412.6 million. Liquid assets
amounted to EUR 23.8 million (29.2) at the end of the period. The
Group's net debt was EUR 532.8 million (507.9). Amer Sports' total
unused committed credit facilities amounted to EUR 150 million.
Amer Sports has a EUR 325 million committed revolving credit
facility, maturing in 2011 and 2012, of which EUR 235 million has
been used. Furthermore, the company has, as of January 1, 2009,
committed revolving credit facilities of EUR 60 million maturing in
2010.
Amer Sports long-term debt consists of EUR 75 million private
placement bond maturing in 2011, USD 100 million loan as a part of
the originally EUR 575 million loan syndicate of 2005, maturing in
2011 and 2012, and a EUR 28.6 million pension loan.
Short-term financing is mainly raised with a domestic commercial
paper program, of which EUR 135.9 million had been used at the end of
June.
In March, Amer Sports Corporation issued a EUR 60 million hybrid bond
in order to strengthen the Group's capital structure and to repay
existing debt. The coupon rate of the bond is 12.0% per annum. The
bond has no maturity but the company may call the bond after three
years. A hybrid bond is a bond that is subordinated to the company's
other debt obligations and will be treated as equity in the IFRS
financial statements. The hybrid bond holding does not confer the
right to vote at shareholder meetings and will not dilute the
holdings of the current shareholders.
The equity ratio at the end of June was 37.3% (31.9%) and gearing was
103% (114%).
Net cash flow from operating activities after interest and taxes was
EUR 58.7 million (94.4). Net cash flow from investing activities was
EUR -15.6 million (10.7).
BUSINESS SEGMENTS
WINTER AND OUTDOOR
Q2/ Q2/ Change 1-6/ 1-6/ Change
EUR million 2009 2008 % %*) 2009 2008 % %*) 2008
Net sales
Winter Sports 11.4 16.6 -31 -34 48.4 53.5 -12 378.9
Equipment -11
Apparel and 49.2 39.4 25 24 131.6 110.5 20 277.9
Footwear 19
Cycling 24.6 26.0 -5 -8 51.8 59.4 -13 -15 114.2
Sports Instruments 21.4 22.6 -5 -8 39.2 43.2 -9 -12 89.8
Net sales, total 106.6 104.6 2 0 271.0 266.6 2 0 860.8
EBIT -29.2 -26.7 -9 -11 -40.1 -41.3 3 4 41.1
*) In local currency terms
In January-June, Winter and Outdoor's net sales were at last year's
level in local currency terms. The breakdown of net sales was as
follows: Apparel and Footwear 49%, Winter Sports Equipment 18%,
Cycling 19% and Sports Instruments 14%. The Americas accounted for
22%, EMEA for 67% and Asia Pacific for 11% of net sales. Sales in
local currencies were down 10% in both in the Americas and Asia
Pacific, and were up 7% in EMEA.
The EBIT of EUR -40.1 million improved by 4% in local currencies
(-41.3).
Business areas
The second quarter is dominated by the Apparel and Footwear business.
In local currencies, Apparel and Footwear sales grew by 20% in the
review period, the growth being driven particularly by Salomon. The
order book for the fall/winter season is now complete, indicating a
slower pace than in the first half of the year. Inventory management
continues to improve according to targets.
The second quarter is not material for Winter Sports Equipment sales
as all focus is on order intake for the next season. Its sales
declined by 12% in local currencies in the review period. Pre-orders
in Winter Sports Equipment for the next season are at last year's
level, with strength in cross-country skiing and protectives.
Regionally, North America continues to underperform while most key
European markets show healthy progress in orders. The operating
expenses continue to track down as planned.
Bicycle component manufacturer Mavic's deliveries started to
stabilize after a very low start for the year. The capacity
constraints in high-end wheels continued to negatively impact both
the sales and margins. The R-SYS recall is now almost complete. The
customer feedback on the execution of the recall has been positive.
Mavic's sales declined by 15% in local currencies.
Net sales of Sports Instruments were below last year's level. In
local currencies, sales decreased by 12%. Net sales declined
particularly in the US and in the diving category globally. However,
the training and outdoor categories were at last year's level despite
the difficult market environment. During the second quarter, Suunto
launched new products in both watch and in diving categories. The
products have been well received by the trade. New cost savings
initiatives have been made in order to adjust Suunto's cost base to
the current market conditions.
BALL SPORTS
Q2/ Q2/ Change 1-6/ 1-6/ Change
EUR million 2009 2008 % %*) 2009 2008 % %*) 2008
Net sales
Racquet Sports 65.1 62.6 4 -2 129.0 125.2 3 -3 227.0
Team Sports 48.6 41.1 18 5 107.9 99.1 9 -3 189.9
Golf 22.0 27.2 -19 -22 41.7 50.6 -18 -20 78.6
Net sales, total 135.7 130.9 4 -4 278.6 274.9 1 -6 495.5
EBIT 7.4 11.3 -35 -39 18.9 27.0 -30 -36 37.0
*) In local currency terms
In January-June, Ball Sports' net sales EUR 278.6 million were at
last year's level. In local currency terms, the net sales declined by
6%. The breakdown of net sales was as follows: Racquet Sports 46%,
Team Sports 39% and Golf 15%. Of the net sales, the Americas
generated 63%, EMEA 24% and Asia Pacific 13%. In a local currencies,
the Americas and EMEA declined by 9% and 4%, respectively. Asia
Pacific grew by 11%.
The EBIT of EUR 18.9 million (27.0) declined by 36% versus last year
in local currencies driven by volume declines and margin pressures.
The unfavorable margin development is the result of challenging
economic environment and consumer shift to the value product mix.
Business areas
In local currencies, the Racquet Sports business declined by 3%. In
local currencies terms, Americas declined by 11%, EMEA declined by
2%, and Asia Pacific grew by 15%. The growth in Asia Pacific is
driven by the expanded distribution in China and a strengthening
position in the badminton throughout the region. Racquet Sports
continues to focus on market share development as the #1 brand.
In local currencies, Team Sports declined by 3%. Asia grew by 30% in
local currencies. The EMEA and the Americas declined by 12% and 4%,
respectively. 85% of the Team Sports business is performed in the US.
Therefore, the overall net sales for Team Sports are being heavily
impacted by the economic recession. In the current environment, the
Team Sports sales mix has shifted towards national retailers offset
by softness in the specialty segment as consumers gravitate to more
value price points.
The Golf business saw a 20% decline versus the previous year in local
currencies. The net sales declines by region are the Americas 29%,
EMEA 9% and Asia Pacific 20%. Based upon market data, golf has
suffered more from changes in consumer behavior than the other
categories in Ball Sports. The golf industry has reacted aggressively
with new pricing and promotions.
FITNESS
Q2/ Q2/ Change 1-6/ 1-6/ Change
EUR million 2009 2008 % %*) 2009 2008 % %*) 2008
Net sales 42.4 49.6 -15 -23 90.4 106.6 -15 -24 220.3
EBIT -2.2 -0.4 -5.6 3.3 3.8
*) In local currency terms
In January-June, Fitness' net sales declined by 24% in local
currencies to EUR 90.4 million. The Americas accounted for 74%, EMEA
for 18%, and Asia Pacific for 8% of net sales. In local currency
terms, sales were down 26% in the Americas, 14% in EMEA and 27% in
Asia Pacific.
EBIT decreased to EUR -5.6 million (3.3) due to the significant fall
in sales and lower gross margins, resulting from a lower capacity
utilization rate and pricing pressure. Precor will continue to focus
on cost savings to return to profitability.
The market situation is unchanged since the first quarter of the year
with the general economic climate being the largest driver of
Precor's performance.
The commercial business decline is driven by tight credit markets
which are making it more difficult for small customers to lease
equipment. Reports from customers suggest that gym membership has not
declined dramatically; however, clubs are seeing reduced revenue due
to lower spending by members on extra services such as personal
training. This revenue shortfall is driving a "wait and see" attitude
toward new equipment purchases as clubs are looking to reduce
expenses. Additionally, many customers are putting new projects on
hold which is restricting the available business to replacement sales
rather than the new facility sales that have driven the industry in
the last few years. Price competition between manufacturers has
remained fierce.
Consumer sales are affected by both the overall withdrawal from
discretionary spending by many families and by a significant
reduction in the number of specialty dealers compared to the prior
year. The distribution lost to the bankruptcy of two major dealers
has not been replaced with a similar number of specialty fitness
stores. In June, Precor began equipment programs with Costco and
Amazon.com to broaden the reach of Precor's consumer products.
Construction is underway on a new strength equipment production
facility in North Carolina. This facility will provide needed
capacity for the recently launched strength product lines and it will
reduce manufacturing costs.
PERSONNEL
At the end of June, the Group employed 6,387 people (6,273). The
Group employed an average of 6,300 people (6,294) during the review
period. The increase is due to the acquisition of the Bulgarian
production facility in 2008 (486 employees) and other insourcing
activities.
+---------------------------------------------------------------+
| | June 30, 2009 | June 30, 2008 | Change % |
|--------------------+---------------+---------------+----------|
| Winter and Outdoor | 3,917 | 3,608 | 9 |
|--------------------+---------------+---------------+----------|
| Ball Sports | 1,674 | 1,746 | -4 |
|--------------------+---------------+---------------+----------|
| Fitness | 721 | 857 | -16 |
|--------------------+---------------+---------------+----------|
| Headquarters | 75 | 62 | 21 |
|--------------------+---------------+---------------+----------|
| Total | 6,387 | 6,273 | 2 |
+---------------------------------------------------------------+
+---------------------------------------------------------+
| | June 30, 2009 | June 30, 2008 | Change % |
|--------------+---------------+---------------+----------|
| EMEA | 3,593 | 3,349 | 7 |
|--------------+---------------+---------------+----------|
| Americas | 2,241 | 2,375 | -6 |
|--------------+---------------+---------------+----------|
| Asia Pacific | 553 | 549 | 1 |
|--------------+---------------+---------------+----------|
| Total | 6,387 | 6,273 | 2 |
+---------------------------------------------------------+
NEW MANAGEMENT MODEL
Amer Sports Corporation reorganized its management model by creating
one group-wide Amer Sports management team. The purpose of the new
Executive Board is to strengthen the development and consistent
execution of Amer Sports Corporate strategy across all business areas
and regions, driving group integration, common goals and the Group's
overall performance.
The following new members were appointed to the Executive Board:
Jean-Marc Pambet, President of Apparel and Footwear, Bernard Millaud,
President of Cycling and Terhi Heikkinen, Senior Vice President Human
Resources. Due to the change, the Amer Sports Executive Team ceased
to exist.
Amer Sports Executive Board members are as of June 16, 2009:
- Roger Talermo, President and CEO
- Pekka Paalanne, Executive Vice President and CFO
- Thomas Ehrnrooth, Senior Vice President Sales and Channel
Management
- Vincent Wauters, Senior Vice President Supply Chain and Information
Technology
- Terhi Heikkinen, Senior Vice President Human Resources
- Chris Considine, President of Ball Sports
- Paul Byrne, President of Fitness Equipment
- Juha Pinomaa, President of Sports Instruments
- Michael Schineis, President of Winter Sports Equipment
- Jean-Marc Pambet, President of Apparel and Footwear
- Bernard Millaud, President of Cycling
Amer Sports Executive Board members are presented more in detail on
www.amersports.com/about
SHARES AND SHAREHOLDERS
At the end of June Amer Sports had 12,239 registered shareholders
(12,520). Nominee registered represented 42.7% (42.2%) of the shares.
During the period, a total of 19.5 million Amer Sports shares were
traded on the NASDAQ OMX Helsinki to a total value of EUR 119.5
million. The share turnover was 26.8% (of the average number of
shares excluding own shares).
At the close of the review period, the last trade in Amer Sports
Corporation shares was EUR 7.90. The high for the period on the
NASDAQ OMX Helsinki was EUR 9.00 and the low EUR 4.69. The average
share price was EUR 6.13.
On June 30, 2009, the company had a market capitalization of EUR
574.4 million excluding own shares. The company has 332,400 own
shares. The number of own shares corresponds to 0.5% of all Amer
Sports shares.
Major changes in holdings, January-June 2009
Amer Sports Corporation received information on February 19, 2009 to
the effect that Novator Finland Oy has converted all of its NASDAQ
OMX forward contracts into direct holdings in shares of Amer Sports
Corporation on February 18, 2009. After settlement of the NASDAQ OMX
forward contracts concerning 7,000,000 shares in Amer Sports
Corporation, Novator Finland Oy then held 14,688,900 shares,
representing 20.11% of the shares and voting rights in Amer Sports
Corporation.
Amer Sports Corporation received information on February 19, 2009 to
the effect that the Danske Bank A/S Helsinki Branch's share capital
and voting rights of Amer Sports fell under 5% (1/20) on February 23,
2009 due to a transaction completed on February 18, 2009. The Danske
Bank A/S Helsinki Branch then held 0 shares in Amer Sports
Corporation.
Amer Sports Corporation was notified on July 2, 2009 that Novator
Finland Oy has sold its entire holding of shares in the company.
Prior to the sale of shares, Novator Finland Oy held 20.11% of the
shares and voting rights in Amer Sports Corporation.
The stock exchange announcements on major changes in shareholdings
can be found on Amer Sports' web pages, www.amersports.com/investors.
RESOLUTIONS OF THE ANNUAL AND EXTRAORDINARY GENERAL MEETING
The Amer Sports Corporation Annual General Meeting was held on March
5, 2009. On April 17, 2009 the Board of Directors of Amer Sports
Corporation decided to cancel the Extraordinary General Meeting
summoned to be held on April 28, 2009 after receiving notice of
Novator Finland Oy's cancellation of its demand for an Extraordinary
General Meeting. The documentation and press releases of the press
releases and meetings are available on the company's website
www.amersports.com.
BUSINESS RISKS AND UNCERTAINTY FACTORS
Amer Sports Corporation's short-term risks are particularly
associated with consumer demand in North America and Europe. Further
information on the company's business risks and uncertainty factors
is available at the company's web site on
www.amersports.com/investors.
OUTLOOK FOR 2009
Amer Sports' market outlook has not materially changed during the
second quarter and the market will remain challenging during the rest
of the year.
Amer Sports' EBIT for the full-year 2009 will be below last year's
level. The expected improvement in Winter Sports Equipment due to
previously implemented cost efficiency measures is more than offset
by weakness in Amer Sports' other businesses. (On June 17, 2009 Amer
Sports announced that its full-year result will weaken from last
year.)
QUARTERLY BREAKDOWNS OF NET SALES AND EBIT
EUR million
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
NET SALES 2009 2009 2008 2008 2008 2008 2007 2007
Winter and Outdoor 106.6 164.4 326.6 267.6 104.6 162.0 304.9 280.6
Ball Sports 135.7 142.9 110.0 110.6 130.9 144.0 107.0 109.9
Fitness 42.4 48.0 58.7 55.0 49.6 57.0 85.2 72.3
Total 284.7 355.3 495.3 433.2 285.1 363.0 497.1 462.8
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
EBIT 2009 2009 2008 2008 2008 2008 2007 2007
Winter and Outdoor -29.2 -10.9 36.7 45.7 -26.7 -14.6 35.2 48.9
Ball Sports 7.4 11.5 3.4 6.6 11.3 15.7 8.0 5.4
Fitness -2.2 -3.4 -2.3 2.8 -0.4 3.7 13.0 8.1
Headquarters -5.4 -4.1 -2.6 -3.6 8.0 -4.8 -2.5 -3.3
Total -29.4 -6.9 35.2 51.5 -7.8 0.0 53.7 59.1
TABLES
The notes are an integral part of consolidated interim financial
information.
Unaudited
EUR million
CONSOLIDATED RESULTS
1-6/ 1-6/ Change 4-6/ 4-6/ Change
Note 2009 2008 % 2009 2008 % 2008
NET SALES 2 640.0 648.1 -1 284.7 285.1 0 1,576.6
Cost of goods
sold -387.8 -385.6 -176.3 -168.2 -943.6
GROSS PROFIT 252.2 262.5 -4 108.4 116.9 -7 633.0
License income 4.6 6.9 2.2 2.9 14.3
Other
operating
income 3.9 15.3 1.3 13.4 18.9
R&D expenses -26.4 -28.2 -12.5 -13.6 -55.6
Selling and
marketing
expenses -197.2 -198.6 -92.4 -95.3 -406.2
Administrative
and other
expenses -73.4 -65.7 -36.4 -32.1 -125.5
EARNINGS
BEFORE
INTEREST AND
TAXES 2 -36.3 -7.8 -29.4 -7.8 78.9
% of net sales -5.7 -1.2 -10.3 -2.7 5.0
Financing
income and
expenses -9.0 -14.3 -1.5 -7.4 -33.3
EARNINGS
BEFORE TAXES -45.3 -22.1 -30.9 -15.2 45.6
Taxes 11.3 5.5 7.7 3.8 -11.6
NET RESULT -34.0 -16.6 -23.2 -11.4 34.0
Attributable
to:
Equity holders
of the parent
company -34.0 -16.6 -23.2 -11.4 33.9
Minority
interests 0.0 0.0 0.0 0.0 0.1
Earnings per
share, EUR -0.49 -0.23 -0.34 -0.16 0.47
Earnings per
share,
diluted, EUR -0.49 -0.23 -0.34 -0.16 0.47
Adjusted
average number
of
shares in
issue less own
shares,
million 72.7 72.4 72.7 72.4 72.5
Adjusted
average number
of
shares in
issue less own
shares,
diluted,
million 72.7 72.5 72.7 72.5 72.5
Equity per
share, EUR 7.10 6.08 6.95
ROCE, % *) 4.9 6.2 7.9
ROE, % -13.2 -7.0 6.7
Average rates
used:
EUR 1.00 = USD 1.33 1.53 1.47
*) 12 months' rolling average
STATEMENT OF COMPREHENSIVE INCOME
1-6/ 1-6/ 4-6/ 4-6/
2009 2008 2009 2008 2008
Net result -34.0 -16.6 -23.2 -11.4 34.0
Other comprehensive income
Translation differences -0.5 -16.6 -9.1 1.1 4.3
Cash flow hedges -1.6 5.1 -5.6 8.5 -4.7
Income tax related to
components of other
comprehensive income 0.4 -1.3 1.4 -2.2 1.2
Other comprehensive income,
net of tax -1.7 -12.8 -13.3 7.4 0.8
Total comprehensive income -35.7 -29.4 -36.5 -4.0 34.8
Total comprehensive income
attributable to:
Equity holders of the parent
company -35.7 -29.4 -36.5 -4.0 34.7
Minority interests 0.0 0.0 0.0 0.0 0.1
NET SALES BY BUSINESS SEGMENT
1-6/ 1-6/ Change 4-6/ 4-6/ Change
2009 2008 % 2009 2008 % 2008
Winter and Outdoor 271.0 266.6 2 106.6 104.6 2 860.8
Ball Sports 278.6 274.9 1 135.7 130.9 4 495.5
Fitness 90.4 106.6 -15 42.4 49.6 -15 220.3
Total 640.0 648.1 -1 284.7 285.1 0 1,576.6
EBIT BY BUSINESS SEGMENT
1-6/ 1-6/ Change 4-6/ 4-6/ Change
2009 2008 % 2009 2008 % 2008
Winter and Outdoor -40.1 -41.3 3 -29.2 -26.7 -9 41.1
Ball Sports 18.9 27.0 -30 7.4 11.3 -35 37.0
Fitness -5.6 3.3 -2.2 -0.4 3.8
Headquarters -9.5 3.2 -5.4 8.0 -3.0
Total -36.3 -7.8 -29.4 -7.8 78.9
GEOGRAPHIC BREAKDOWN OF NET SALES
1-6/ 1-6/ Change 4-6/ 4-6/ Change
2009 2008 % 2009 2008 % 2008
Americas 302.3 313.3 -4 138.5 140.2 -1 677.8
EMEA 264.9 266.9 -1 108.4 109.2 -1 723.0
Asia Pacific 72.8 67.9 7 37.8 35.7 6 175.8
Total 640.0 648.1 -1 284.7 285.1 0 1,576.6
CONSOLIDATED CASH FLOW STATEMENT
Note 1-6/2009 1-6/2008 2008
EBIT -36.3 -7.8 78.9
Adjustments to cash flow from operating
activities and depreciation 16.8 3.9 20.6
Change in working capital 108.0 118.5 -42.6
Cash flow from operating activities
before
financing items and taxes 88.5 114.6 56.9
Interest paid and received -16.8 -14.4 -31.9
Income taxes paid -13.0 -5.8 -14.5
Cash flow from operating activities 58.7 94.4 10.5
Company acquisitions -1.2 - -2.5
Company divestments - 2.6 3.6
Capital expenditure on non-current
tangible
and intangible assets -15.1 -15.4 -43.1
Proceeds from sale of tangible
non-current
assets 0.7 23.5 27.4
Cash flow from investing activities -15.6 10.7 -14.6
Dividends paid 5 -11.8 -36.3 -36.4
Hybrid bond 3 60.0 - -
Change in net debt and other financial
items 3 -139.3 -106.8 42.8
Cash flow from financing activities -91.1 -143.1 6.4
Liquid funds at 1 Jan 72.1 68.0 68.0
Translation differences -0.3 -0.8 1.8
Change in liquid funds -48.0 -38.0 2.3
Liquid funds at 30 June/31 December 23.8 29.2 72.1
CONSOLIDATED BALANCE SHEET
30 June, 30 June, 31 Dec,
Note 2009 2008 2008
Assets
Goodwill 277.0 259.8 279.3
Other intangible non-current assets 207.8 204.3 207.5
Tangible non-current assets 131.0 122.1 135.3
Other non-current assets 62.6 65.6 65.9
Inventories and work in progress 351.5 360.3 346.0
Receivables 338.0 351.4 555.8
Cash and cash equivalents 23.8 29.2 72.1
Assets 2 1,391.7 1,392.7 1,661.9
Shareholders' equity and liabilities
Shareholders' equity 3 519.0 443.8 508.1
Long-term interest-bearing liabilities 3 412.6 206.4 434.9
Other long-term liabilities 13.9 18.0 22.0
Current interest-bearing liabilities 3 144.0 330.7 252.8
Other current liabilities 271.4 315.3 389.0
Provisions 30.8 78.5 55.1
Shareholders' equity and liabilities 1,391.7 1,392.7 1,661.9
Equity ratio, % 37.3 31.9 30.6
Gearing, % 103 114 121
EUR 1.00 = USD 1.41 1.57 1.39
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Equity attributable to equity holders of the
parent
Fair Total
Fund Trans- value Sha-
Pre- for lation and Retai- Mino- re-
Share mi- own diffe- other ned rity Hyb- hol-
cap- um sha- ren- reser- ear- inte- rid ders'
Note ital fund res ces ves nings Total rests bond equity
Balance at
Jan 1,
2008 289.3 15.0 -7.5 -66.8 -2.7 278.9 506.2 -3.5 - 509.7
Total
comp-
rehen-
sive
income -16.6 3.8 -16.6 -29.4 -29.4
Dividend
Distri-
bution 5 -36.3 -36.3 -36.3
Warrants 0.7 0.7 0.7
Warrants
exercised 2.9 -2.9 0.0 0.0
Other
change in
minority
interests 0.0 -0.9 -0.9
Balance at
June 30,
2008 292.2 12.1 -7.5 -83.4 1.1 226.7 441.2 2.6 - 443.8
Balance atJan 1,
2009 292.2 12.1 -5.7 -62.5 -6.2 275.6 505.5 2.6 - 508.1
Total comp-
rehen-
sive
income -0.5 -1.2 -34.0 -35.7 -35.7
Dividend
distri-
bution 5 -11.8 -11.8 -11.8
Hybrid
bond 3 -1.6 -1.6 60.0 58.4
Balance at
June 30,
2009 292.2 12.1 -5.7 -63.0 -7.4 228.2 456.4 2.6 60.0 519.0
AMER SPORTS NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The interim financial information has been prepared in accordance
with IAS 34 'Interim Financial Reporting' and in compliance with IFRS
-standards and interpretations in force as at January 1, 2009, as
adapted by the EU. The IFRS recognition and measurement principles as
described in the annual financial statements for 2008 have also been
applied in the preparation of the interim financial information with
the below-mentioned changes.
The relative proportion of the estimated tax charge for the full
financial year has been charged against the result for the period.
In key figures, the hybrid bond has been included in shareholders'
equity. Interest expenses on the hybrid bond have been accrued based
on its coupon rate of 12% and are debited directly to retained
earnings net of tax. In the calculation of earnings per share,
interest expenses of the hybrid bond have been included in the
earnings of the period.
Standards and interpretations adopted from the beginning of 2009:
IAS 1 (Revised) - `Presentation of financial statements'. The revised
standard prohibits the presentation of items of income and expenses
(that is, 'non-owner changes in equity') in the statement of changes
in equity, requiring 'non-owner changes in equity' to be presented
separately from owner changes in equity. All non-owner changes in
equity will be required to be shown in a performance statement, but
entities can choose whether to present one performance statement (the
statement of comprehensive income) or two statements (the income
statement and statement of comprehensive income). Where entities
restate or reclassify comparative information, they are required to
present a restated balance sheet as at the beginning comparative
period in addition to the current requirement to present balance
sheets at the end of the current period and comparative period. The
Company applies IAS 1 (Revised) from January 1, 2009. Both the income
statement and statement of comprehensive income are presented as
performance statements.
IFRS 8 'Operating segments' - IFRS 8 replaces IAS 14, 'Segment
reporting'. The new standard requires a 'management approach', under
which segment information is presented on the same basis as that used
for internal reporting purposes. IFRS 8 has not changed the Company's
segmentation, which is consistent with the Company's internal
reporting. Furthermore, IFRS 8 requires disclosures e.g. about the
Company's geographical areas and significant customers.
Other changes in accounting policies:
Used committed revolving credit facilities maturing in 2011 and 2012
are reclassified to long-term interest-bearing liabilities.
Comparative information for 2008 has been restated accordingly.
2. SEGMENT INFORMATION
Amer Sports has three business segments: Winter and Outdoor, Ball
Sports and Fitness.
The accounting policies for segment reporting do not differ from
Group's accounting policies and have not changed due to the adoption
of IFRS 8. The decisions concerning assessing the performance of
segments and allocating resources to the segments are based on
segments' net sales and earnings before interest and taxes. The chief
operating decision maker of Amer Sports is the Executive Board.
The adoption of IFRS 8 has not changed Amer Sports' reportable
segments since the segment information previously presented by the
Group has been based on internal management reporting. Adoption of
the standard affected only on the presented information.
There were no intersegment business operations during the reported
periods.
Earnings Financing
before income Earnings
interest and and before
Net sales taxes expenses taxes Assets
1-6/2009
Winter and Outdoor 271.0 -40.1 -40.1 681.0
Ball Sports 278.6 18.9 18.9 365.4
Fitness 90.4 -5.6 -5.6 214.3
Segments, total 640.0 -26.8 -26.8 1,260.7
Unallocated items*) -9.5 -9.0 -18.5 131.0
Group total 640.0 -36.3 -9.0 -45.3 1,391.7
1-6/2008
Winter and Outdoor 266.6 -41.3 -41.3 692.3
Ball Sports 274.9 27.0 27.0 334.9
Fitness 106.6 3.3 3.3 231.5
Segments, total 648.1 -11.0 -11.0 1,258.7
Unallocated items*) 3.2 -14.3 -11.1 134.0
Group total 648.1 -7.8 -14.3 -22.1 1,392.7
2008
Winter and Outdoor 860.8 41.1 41.1 875.4
Ball Sports 495.5 37.0 37.0 381.1
Fitness 220.3 3.8 3.8 245.3
Segments, total 1,576.6 81.9 81.9 1,501.8
Unallocated items*) -3.0 -33.3 -36.3 160.1
Group total 1,576.6 78.9 -33.3 45.6 1,661.9
*) Earnings before interest and taxes mainly include expenses of
Headquarters.
GEOGRAPHIC BREAKDOWN OF NET SALES
1-6/2009 1-6/2008 2008
Americas 302.3 313.3 677.8
EMEA 264.9 266.9 723.0
Asia Pacific 72.8 67.9 175.8
Total 640.0 648.1 1,576.6
3. FINANCIAL LIABILITIES
Hybrid bond
In March, Amer Sports Corporation issued a EUR 60 million hybrid bond
in order to strengthen the Group's capital structure and to repay
existing debt. The coupon rate of the bond is 12.0% per annum. The
bond has no maturity but the company may call the bond after three
years. A hybrid bond is a bond that is subordinated to the company's
other debt obligations and will be treated as equity in the IFRS
financial statements. The hybrid bond holding does not confer the
right to vote at shareholder meetings and will not dilute the
holdings of the current shareholders.
Reclassification of credit facility
Used committed revolving credit facilities maturing in 2011 and 2012
are presented under long-term interest-bearing liabilities.
Comparative information for 2008 has been restated accordingly.
Restatement had EUR 255 million effects on short-term and long-term
liabilities at the end of 2008 and EUR 30 million as at June 30,
2008.
4. DERIVATIVE FINANCIAL INSTRUMENTS
30 June, 30 June, 31 Dec,
2009 2008 2008
Nominal value
Foreign exchange forward contracts 623.5 443.3 604.3
Forward rate agreements 0.0 0.0 0.0
Interest rate swaps 145.9 213.5 221.9
Fair value
Foreign exchange forward contracts 12.1 9.1 -1.1
Forward rate agreements 0.0 0.0 0.0
Interest rate swaps -7.2 -0.1 -7.6
5. DIVIDENDS
Dividends distributed by Amer Sports to its shareholders and minority
shareholders of its subsidiaries amounted to EUR 11.8 million on
March 2009 relating to year ended December 31, 2008 (EUR 0.16/share
for shareholders of Amer Sports Corporation, totaling EUR 11.6
million).
6. CONTINGENT LIABILITIES AND SECURED ASSETS, CONSOLIDATED
30 June, 30 June, 31 Dec,
2009 2008 2008
Mortgages pledged 0.0 0.0 0.0
Guarantees 9.9 4.7 8.5
Liabilities for leasing and 110.7 101.4 106.6
rental agreements
Other liabilities 42.3 45.2 46.1
There are no guarantees or contingencies given for the management of
the company, the shareholders or the associated companies.
7. SEASONALITY
Amer Sports' business is subject to seasonality; even though the
Group operates in many sports equipment segments during all four
seasons. Third and fourth quarters have historically been the
strongest for Amer Sports (measured by net sales and profitability),
because winter sports equipment are typically sold before winter
season during third and fourth quarters. Pre-orders of winter sports
equipment for 2009/2010 were at last year's level. During the second
quarter, apparel and footwear sales grew, in local currencies, by
20%. The seasonality from Winter Sports Equipment is compensated
partly by the Ball Sports segment's summer season, because the
strongest months for Ball Sports are first and second quarters.
All forecasts and estimates presented in this report are based on the
management's current judgment of the economic environment. The actual
results may differ significantly.
For more information, please contact:
Tommy Ilmoni, Vice President, IR and Corporate Communications,
tel. +358 9 7257 8233, tommy.ilmoni@amersports.com
AMER SPORTS 2009 FINANCIAL CALENDAR
- Q3 on Thursday, October 29
DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.amersports.com
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