2012-04-27 12:00:00 CEST
2012-04-27 12:00:28 CEST
REGULATED INFORMATION
Amer Sports - Interim report (Q1 and Q3)
Amer Sports Corporation Interim Report January-March 2012
Amer Sports Corporation
INTERIM REPORT
April 27, 2012 at 1:00 pm
JANUARY-MARCH 2012
* Net sales EUR 489.8 million (January-March 2011: EUR 449.1 million). In
local currencies, net sales increased by 7%.
* The fastest growth was in Apparel (up 29%), Footwear (up 13%) and Individual
Ball Sports (former Racquet Sports and Golf, up 8%), partially offset by
Winter Sports Equipment.
* EBIT EUR 29.0 million (25.7), up 9% in local currencies.
* Earnings per share EUR 0.15 (0.13).
* Net cash flow after investing activities EUR 97.4 million (87.1).
* Gearing 57% (December 31, 2011: 47%).
OUTLOOK FOR 2012
In 2012, Amer Sports will continue to invest into executing its long-term
strategy and sustaining profitable growth with special focus on leveraging Amer
Sports' strong brands into apparel, footwear and accessories as well as on
emerging markets expansion.
Amer Sports expects broad-based sales growth and profitability improvement
across most business areas in 2012, with the exception of Winter Sports
Equipment where pre-orders are expected to decline and profitability to be
adversely impacted by the late and mild winter in season 2011/12, especially in
North America and Southern Europe. However, the Winter Sports Equipment
operational efficiency program which started in 2010 is proceeding ahead of plan
and will partially help to mitigate the negative impacts of the expected pre-
order decline.
Amer Sports' net sales in local currencies are expected to increase from 2011 in
line with the company's annual 5% growth target. Leveraging Amer Sports' brands
into apparel, footwear and accessories continues to be the main growth driver
for the company.
KEY FIGURES
EUR million 1-3/2012 1-3/2011 Ch % Ch %*) 2011
-------------------------------------------------------------------------------
Net sales 489.8 449.1 9 7 1,880.8
Gross profit 216.3 194.6 11 9 817.4
Gross profit % 44.2 43.3 43.5
EBIT 29.0 25.7 13 9 135.5
EBIT % 5.9 5.7 7.2
Financing income and expenses -5.0 -4.3 -20.5
Earnings before taxes 24.0 21.4 115.0
Net result 18.7 17.1 90.9
Earnings per share, EUR 0.15 0.13 0.71
Net cash flow after investing activities 97.4 87.1 -21.4
Equity ratio, % at period end 40.8 47.4 45.6
Gearing, % at period end 57 35 47
Personnel at period end 7,158 6,804 5 7,061
Average rates used, EUR/USD 1.31 1.37 1.39
*) Change in local currencies
HEIKKI TAKALA, PRESIDENT AND CEO:"We had a solid start for the year with all business areas progressing towards
their targets, with the exception of Winter Sports Equipment. I'm especially
pleased by the apparel and footwear driven growth and by the rebounding of our
Individual Ball Sports where we made real progress in tennis rackets. Also our
emerging markets expansion continued according to plan with good growth in
Russia, Latin America and China, supported by continuous investments into own
retail.
Winter Sports Equipment market is somewhat depressed due to the unfavorable
weather conditions and we expect declining pre-orders. However, I'm encouraged
by our operational efficiency improvements in the business area.
We are continuously driving synergies and scale across the company with on-going
consolidation of operations. For example, we have continued to build the
category-based operations in apparel, footwear and accessories and we have
brought third party distributor operations in-house in several countries. This
is driving our sales and gross margin improvement but it also means continuous
front-heavy operational expenses.
Looking forward, we continue to execute our strategy as we see that it's
working."
For further information, please contact:
Heikki Takala, President and CEO, tel. +358 9 7257 8210
Jussi Siitonen, CFO, tel. +358 9 7257 8212
Päivi Antola, Director, Corporate Communications and IR, tel. +358 9 7257 8233
TELEPHONE CONFERENCE
An English-language conference call for investors and analysts will be held
today at 2:00 pm Finnish time. To participate in the call, please dial
+44 (0)20 7784 1036 (UK/international dial-in number). The conference can also
be followed at www.amersports.com. A recorded version and a transcript will be
available later at the same web address. The replay number of the call is
+44 (0)20 7111 1244, and the access code 1344897#.
SECOND QUARTER RESULTS BULLETIN
Amer Sports will publish its Q2/2012 results bulletin on Thursday, August
2, 2012 at approximately 1:00 pm Finnish time.
INTERIM REPORT JANUARY-MARCH 2012
NET SALES AND EBIT
Amer Sports' net sales in January-March 2012 were EUR 489.8 million (January-
March 2011: 449.1). Net sales increased by 7% in local currencies. The fastest
growth took place in Apparel, up by 29%, Footwear, up by 13%, and in Individual
Ball Sports (former Racquet Sports and Golf), up by 8%. Sales in Winter Sports
Equipment declined by 9%. In local currencies, sales in EMEA increased by 4%, in
the Americas by 7% and in Asia Pacific by 16%.
Net sales by business segment 1-3/ 1-3/ Change Change % of sales
EUR million 2012 2011 % %*) 2012 2011
----------------------------------------------------------------
Winter and Outdoor 256.5 233.5 10 8 52 1,137.6
Ball Sports 173.6 159.0 9 6 36 511.0
Fitness 59.7 56.6 5 1 12 232.2
----------------------------------------------------------------
Total 489.8 449.1 9 7 100 1,880.8
----------------------------------------------------------------
*) Change in local currencies
Geographic breakdown of net sales
1-3/ 1-3/ Change Change % of sales
EUR million 2012 2011 % %*) 2012 2011
----------------------------------------------------------
EMEA 226.7 214.1 6 4 46 917.6
Americas 205.7 186.4 10 7 42 742.1
Asia Pacific 57.4 48.6 18 16 12 221.1
----------------------------------------------------------
Total 489.8 449.1 9 7 100 1,880.8
----------------------------------------------------------
*) Change in local currencies
Gross margin was 44.2% (43.3) with a broad-based improvement.
Group EBIT was EUR 29.0 million (25.7). Increased sales volumes contributed
approximately EUR 12.7 million to EBIT growth, higher gross margins
approximately EUR 4.4 offset by increased operating expenses, net of other
income and expenses, of approximately EUR -11.7 million. Operating expenses
increased due to volume growth related sales and distribution costs and
marketing, including continuous investments in own retail. Also, the company is
driving synergies and scale with on-going consolidation of operations, for
example building the category model in apparel, footwear and accessories and
bringing third party distributor operations in-house in several countries. These
investments support Amer Sports' sales and gross margin improvement. Changes in
foreign exchange rates had a negative impact of approximately EUR -2.1 million
on EBIT.
EBIT by business segment
1-3/ 1-3/ Change
EUR million 2012 2011 % 2011
------------------------------------------
Winter and Outdoor 10.7 9.3 15 118.5
Ball Sports 19.9 17.7 12 25.0
Fitness 3.9 3.3 18 10.3
Headquarters*) -5.5 -4.6 -18.3
------------------------------------------
EBIT total 29.0 25.7 13 135.5
------------------------------------------
*) Headquarters segment consists of Group administration, shared services
functions, other non-operational income and expenses and fair valuation of share
based compensations. In the first quarter of 2012, segment operating loss
increased by EUR 0.9 million due to increased operational expenses and change in
fair valuation of share-based compensations and other adjustments.
Net financial expenses were EUR 5.0 million (4.3) including net interest
expenses of EUR 4.5 million (4.5). Net foreign exchange losses were EUR 0.5
million (gains of EUR 0.2 million). Earnings before taxes totaled EUR 24.0
million (21.4) and taxes were EUR 5.3 million (4.3). Earnings per share were EUR
0.15 (0.13).
CASH FLOW AND FINANCING
Net cash flow after investing activities (free cash flow) was EUR 97.4 million
(87.1). Working capital in total was reduced by EUR 89.4 million (73.4).
Inventories decreased by EUR 12.2 million (increase of 23.1) and receivables by
EUR 129.4 million (119.3).
At the end of March, the Group's net debt amounted to EUR 409.5 million
(December 31, 2011: 391.6). The increase was due to redemption of the hybrid
bond of EUR 60.0 million and its interests of EUR 7.2 million, dividends of EUR
38.9 (36.4) million and due to foreign exchange derivatives used in hedging. The
hybrid bond was issued on March 12, 2009.
Interest-bearing liabilities amounted to EUR 601.1 million (December
31, 2011: 470.4) consisting of short-term debt of EUR 197.2 million and long-
term debt of EUR 403.9 million. The average interest rate on the Group's
interest-bearing liabilities was 3.6% (December 31, 2011: 3.6).
Short-term debt consists mainly of repayments of long-term loans of EUR 5.7
million (December 31, 2011: 23.4) and commercial papers of EUR 189.6 (194.2)
which Amer Sports had issued in the Finnish market to fund seasonally high
working capital. The total size of the commercial paper program is EUR 500
million.
Cash and cash equivalents totaled EUR 191.6 million (December 31, 2011: 78.8).
The syndicated loan signed in 2011 consists of a EUR 200 million revolving
credit facility. Amer Sports had not used any of the revolving credit facility
at the end of the review period.
In March 2012, Amer Sports issued two euro denominated bonds. The amount of EUR
150 million was launched and placed on the following terms: EUR 50 million
floating rate notes due March 6, 2014; and EUR 100 million fixed 4.125% notes
due March 15, 2016. Amer Sports will apply for listing of the bonds on the
NASDAQ OMX Helsinki Ltd. The proceeds of the bonds will be used for repayment of
debt and general corporate purposes.
The equity ratio at the end of March was 40.8% (December 31, 2011: 45.6) and
gearing was 57% (December 31, 2011: 47).
CAPITAL EXPENDITURE AND INVESTMENTS
The Group's capital expenditure totaled EUR 10.9 (9.3) million. Depreciation
totaled EUR 9.7 million (9.0). The whole year capital expenditure is expected to
be approximately EUR 50 million (51.4).
BUSINESS SEGMENT REVIEWS
WINTER AND OUTDOOR
Change Change
EUR million 1-3/2012 1-3/2011 % %*) 2011
-------------------------------------------------------------------
Net sales
Winter Sports Equipment 43.7 46.9 -7 -9 448.4
Footwear 104.1 91.1 14 13 287.7
Apparel 51.2 38.9 32 29 191.6
Cycling 36.3 34.4 6 5 120.5
Sports Instruments 21.2 22.2 -5 -7**) 89.4
Net sales, total 256.5 233.5 10 8 1,137.6
EBIT 10.7 9.3 15 17 118.5
Personnel at period end 4,593 4,377 5 4,590
*) Change in local currencies
**) 9% underlying growth excluding the businesses divested in 2011
Winter and Outdoor's net sales in the review period were EUR 256.5 million
(233.5), an increase of 8% in local currencies. Net sales growth was driven by
Apparel and Footwear. In geographical terms, the strongest growth was in the
Americas, up by 18%.
Change Change
EUR million 1-3/2012 1-3/2011 % %*) 2011
-----------------------------------------------------
EMEA 171.4 163.5 5 4 751.3
Americas 53.6 44.0 22 18 253.4
Asia Pacific 31.5 26.0 21 15 132.9
-----------------------------------------------------
Total 256.5 233.5 10 8 1,137.6
-----------------------------------------------------
*) Change in local currencies
EBIT was EUR 10.7 million (9.3). Increased sales volumes contributed
approximately EUR 8.7 million to the EBIT growth while higher gross margins
contributed approximately EUR 2.5 million. Operating expenses increased by
approximately EUR 13.0 million due to sales and distribution and marketing costs
(all in local currencies).
Winter Sports Equipment
Winter Sports Equipment's net sales were EUR 43.7 million (46.9), a decrease of
9% in local currencies. Decline in sales was due to unfavorable weather
conditions in key markets. Sales were down in all the main product categories.
Footwear
Footwear's net sales were EUR 104.1 million (91.1), an increase of 13% in local
currencies. The growth came from trail running and outdoor performance product
segments, and was strongest in North America and emerging markets (Russia, Latin
America, China).
Apparel
Apparel's net sales were EUR 51.2 million (38.9), an increase of 29% in local
currencies. Growth occurred in all geographical regions.
Cycling
Cycling's net sales were EUR 36.3 million (34.4.), an increase of 5% in local
currencies. The growth came mainly from cycling helmets and apparel.
Sports Instruments
Sports Instruments' net sales were EUR 21.2 million (22.2), a decrease of 7% in
local currencies. Underlying sales excluding the businesses divested in 2011
increased by 9%. The growth was supported by a Suunto GPS watch which was
launched during the quarter.
BALL SPORTS
Change Change
EUR million 1-3/2012 1-3/2011 % %*) 2011
-------------------------------------------------------------------
Net sales
Individual Ball Sports**) 97.6 87.7 11 8 283.0
Team Sports 76.0 71.3 7 3 228.0
Net sales, total 173.6 159.0 9 6 511.0
EBIT 19.9 17.7 12 9 25.0
Personnel at period end 1,675 1,621 3 1,631
*) Change in local currencies
**) Includes former Racquet Sports and Golf businesses
Ball Sports' net sales in the review period were EUR 173.6 million (159.0), an
increase of 6% in local currencies. All business areas contributed to the growth
compared to last year. Individual Ball Sports (former Racquet Sports and Golf)
delivered strong growth in the quarter with an increase of 8% in local
currencies. In geographical terms, the strongest growth was in Japan.
Change Change
EUR million 1-3/2012 1-3/2011 % %*) 2011
---------------------------------------------------
EMEA 41.9 39.3 7 6 113.4
Americas 110.3 102.4 8 4 331.0
Asia Pacific 21.4 17.3 24 17 66.6
---------------------------------------------------
Total 173.6 159.0 9 6 511.0
---------------------------------------------------
*) Change in local currencies
EBIT was EUR 19.9 million (17.7). The improvement was due to increased sales
volumes which contributed EUR 3.9 million to EBIT growth. Operating expenses
increased by EUR 2.4 million due to increased sales and distribution and
marketing costs (all in local currencies).
Individual Ball Sports (former Racquet Sports and Golf)
Individual Ball Sports' net sales were EUR 97.6 million (87.7), an increase of
8% in local currencies. Japan is experiencing a recovery from last year's
challenging market conditions. Growth was also driven by the introduction of the
new tennis racket product line.
Team Sports
Team Sports' net sales were EUR 76.0 million (71.3), an increase of 3% in local
currencies. Strong momentum in baseball bats continued.
FITNESS
Change Change
EUR million 1-3/2012 1-3/2011 % %*) 2011
--------------------------------------------------------------
Net sales 59.7 56.6 5 1 232.2
EBIT 3.9 3.3 18 13 10.3
Personnel at period end 784 735 7 749
*) Change in local currencies
Fitness's net sales in the review period were EUR 59.7 million (56.6), and were
at last year's level in local currencies. In geographical terms, EMEA grew by
16%.
The commercial business (clubs and institutions) sales were up by 3% in local
currencies. Consumer business (home use) was down by 7%.
Change Change
EUR million 1-3/2012 1-3/2011 % %*) 2011
---------------------------------------------------
EMEA 13.4 11.3 19 16 52.9
Americas 41.8 40.0 5 0 157.7
Asia Pacific 4.5 5.3 -16 -21 21.6
---------------------------------------------------
Total 59.7 56.6 5 1 232.2
---------------------------------------------------
*) Change in local currencies
EBIT was EUR 3.9 million (3.3). The improvement was due to higher gross margins
which contributed approximately EUR 1.6 million to EBIT. Operating expenses
increased by approximately EUR 1.1 million mainly due to increased research and
development (all in local currencies).
Personnel
At the end of March, the number of Group employees was 7,158 (December
31, 2011: 7,061). The increase came mainly from personnel working in sales and
distribution. The increase in Headquarters and shared services was due to
establishing a shared financial service center in the EMEA region which will
bring scale and synergy benefits.
March 31, March 31, Change December 31,
2012 2011 % 2011
-------------------------------------------------------------------------
Winter and Outdoor 4,593 4,377 5 4,590
Ball Sports 1,675 1,621 3 1,631
Fitness 784 735 7 749
Headquarters and shared services 106 71 49 91
-------------------------------------------------------------------------
Total 7,158 6,804 5 7,061
-------------------------------------------------------------------------
March 31, March 31, Change December 31,
2012 2011 % 2011
-----------------------------------------------------
EMEA 4,156 4,007 4 4,185
Americas 2,367 2,260 5 2,312
Asia Pacific 635 537 18 564
-----------------------------------------------------
Total 7,158 6,804 5 7,061
-----------------------------------------------------
CHANGES IN GROUP STRUCTURE
In January the company completed the acquisition of a 5% minority share in
Atomic Austria GmbH. In March the company sold its 40% minority share in Suunto
Benelux BV. The transactions had no material impact on Amer Sports' financial
position.
SHARES AND SHAREHOLDERS
The company's share capital totaled EUR 292,182,204 on March 31, 2012 and the
number of shares was 118,517,285.
Authorizations
The Annual General Meeting held on March 10, 2011 authorized the Board of
Directors to decide on the repurchase of a maximum of 10,000,000 of the
company's own shares ("Repurchase Authorization"). The company's own shares
shall be repurchased otherwise than in proportion to the holdings of the
shareholders by using the non-restricted equity through public trading on the
NASDAQ OMX Helsinki at the market price prevailing at the time of acquisition.
The shares shall be repurchased and paid for in accordance with the rules of the
NASDAQ OMX Helsinki and Euroclear Finland Ltd. The Repurchase Authorization is
valid for 18 months from the decision of the Annual General Meeting.
The Annual General Meeting held on March 8, 2012 authorized the Board of
Directors to decide on the repurchase of a maximum of 10,000,000 of the
company's own shares ("Repurchase Authorization"). The company's own shares
shall be repurchased otherwise than in proportion to the holdings of the
shareholders by using the non-restricted equity through public trading on the
Nasdaq OMX Helsinki at the market price prevailing at the time of acquisition.
The shares shall be repurchased and paid for in accordance with the rules of the
Nasdaq OMX Helsinki and Euroclear Finland Ltd. The Repurchase Authorization is
valid 18 months from the decision of the Annual General Meeting.
Amer Sports Board of Directors decided on January 31, 2012 to utilize the
authorization given by the Annual General Meeting held on March 10, 2011 to
cancel altogether 3,000,000 own shares held by the company, which equates to
approximately 2.5% of the registered number of shares. The cancellation did not
affect the company's share capital.
Based on the Board of Directors' decision, a total of 280,029 Amer Sports shares
were transferred on March 8, 2012 to the personnel involved in the company's
Performance Share Plan 2010 and the Restricted Stock Plan 2010. The shares were
transferred from the shares owned by Amer Sports Corporation.
At the end of March, Amer Sports Corporation held a total of 719,971 shares and
Amer Sports International Oy 12,125 shares of Amer Sports Corporation. The
number of own shares corresponds to 0.62% (0.83) of all Amer Sports shares.
Trading in shares
A total of 20.1 million (18.6) Amer Sports shares with a value totaling
EUR 202.6 million (182.0) were traded on the NASDAQ OMX Helsinki Ltd in the
review period. The average daily volume in January-March 2012 was 314,083 shares
(294,751).
The closing price of the Amer Sports Corporation share on the NASDAQ OMX
Helsinki Ltd stock exchange on March 31, 2012 was EUR 9.80 (9.06). Shares
registered a high of EUR 10.70 (10.96) and a low of EUR 9.03 (8.43) during the
review period. The average share price was EUR 10.08 (9.08). On March 31, 2012,
the company had a market capitalization of EUR 1,154.3 million (1,091.8),
excluding own shares.
Notification of change in shareholding under the Finnish Securities Market Act
On February 7, 2012, Amer Sports received information to the effect that Orkla
ASA 's (Norwegian trade register no. 910 747 711) share capital and voting
rights of Amer Sports had fallen below 5% on February 6, 2012. At that time
Orkla ASA owned 3,891,352 shares, which represented 3.2% of Amer Sports
Corporation's share capital and voting rights (previously 6,081,352 shares).
DECISIONS OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS
At the Amer Sports Corporation Annual General Meeting held on March 8, 2012, the
following resolutions were approved:
Adoption of the annual accounts
The Annual General Meeting (AGM) approved Amer Sports financial statements for
2011.
Resolution on use of the profit shown on the balance sheet and the payment of
dividend
The AGM resolved to distribute a dividend of EUR 0.33 per share to be paid for
the financial year ended December 31, 2011. The dividend was paid to
shareholders who were registered in the list of shareholders maintained by
Euroclear Finland Ltd as of March 13, 2012, which was the record date for the
dividend payment. The dividend was paid on March 20, 2012.
Resolution on the discharge of the members of the Board of Directors and the CEO
from liability
The AGM granted the members of the Board of Directors and Company's President
and CEO, Heikki Takala a discharge from liability for the financial year 2011.
Resolution on the remuneration of the members of the Board of Directors
It was approved that the annual remuneration payable to the Board of Directors
be as follows: Chairman EUR 100,000, Vice Chairman EUR 60,000, and other members
EUR 50,000. No extra remuneration is paid from attending meetings of the Board
of Directors or meetings of the Committees of the Board of Directors. Of the
annual remuneration, 40% is paid in the form of the Company's shares and 60% in
cash.
Resolution on the number of the members of the Board of Directors
The AGM confirmed that the number of the members of the Board of Directors is
seven (7).
Election of members of the Board of Directors
The AGM elected Anssi Vanjoki, Ilkka Brotherus, Martin Burkhalter, Christian
Fischer, Indra Åsander, Bruno Sälzer and Hannu Ryöppönen as members of the Board
of Directors. The Board of Directors' term of service will run until the close
of the 2013 Annual General Meeting.
Resolution on the remuneration of the auditor
The AGM decided that the auditor's fee will be paid as invoiced.
Election of auditor
The AGM elected the Authorized Public Accountants PricewaterhouseCoopers Oy to
act as auditor of the Company. The Audit Committee of the Board of Directors
proposes that the auditor in charge of the audit is Jouko Malinen, Authorized
Public Accountant.
Authorizing the Board of Directors to decide on the repurchase of the Company's
own shares
The AGM authorized the Board of Directors to decide on the repurchase of a
maximum of 10,000,000 of the company's own shares ("Repurchase Authorization").
The company's own shares shall be repurchased otherwise than in proportion to
the holdings of the shareholders by using the non-restricted equity through
public trading on the Nasdaq OMX Helsinki at the market price prevailing at the
time of acquisition. The shares shall be repurchased and paid for in accordance
with the rules of the Nasdaq OMX Helsinki and Euroclear Finland Ltd. The
Repurchase Authorization is valid for 18 months from the decision of the Annual
General Meeting.
BOARD OF DIRECTORS WORKING ARRANGEMENTS
At its organizing meeting immediately following the Annual General Meeting, the
Amer Sports Corporation's Board of Directors appointed Anssi Vanjoki as Chairman
and Ilkka Brotherus as Vice Chairman. From among its members, the Board
appointed the following members to the Board Committees:
* Compensation Committee: Bruno Sälzer, Chairman, Christian Fischer, Anssi
Vanjoki and Indra Åsander
* Nomination Committee: Ilkka Brotherus, Chairman, Martin Burkhalter and Anssi
Vanjoki
* Audit Committee: Hannu Ryöppönen, Chairman, Ilkka Brotherus and Martin
Burkhalter
SIGNIFICANT RISKS AND UNCERTAINTIES
Amer Sports' business is balanced by its broad portfolio of sports and brands as
well as its presence in all major markets. Short-term risks for Amer Sports are
particularly associated with the late and mild winter in season 2011/12 and its
expected negative impact on Winter Sports Equipment pre-orders, with consumer
demand development in North America, Europe and Japan, with labor and raw
material price inflation, especially in China, and with Amer Sports' ability to
manufacture, source and deliver products on a timely basis.
Further information on the company's business risks and uncertainty factors is
available on the company's web site at www.amersports.com/investors.
OUTLOOK FOR 2012
In 2012, Amer Sports will continue to invest into executing its long-term
strategy and sustaining profitable growth with special focus on leveraging Amer
Sports' strong brands into apparel, footwear and accessories as well as on
emerging markets expansion.
Amer Sports expects broad-based sales growth and profitability improvement
across most business areas in 2012, with the exception of Winter Sports
Equipment where pre-orders are expected to decline and profitability to be
adversely impacted by the late and mild winter in season 2011/12, especially in
North America and Southern Europe. However, the Winter Sports Equipment
operational efficiency program which started in 2010 is proceeding ahead of plan
and will partially help to mitigate the negative impacts of the expected pre-
order decline.
Amer Sports' net sales in local currencies are expected to increase from 2011 in
line with the company's annual 5% growth target. Leveraging Amer Sports' brands
into apparel, footwear and accessories continues to be the main growth driver
for the company.
Outlook given in the Financial Statements Bulletin on January 31, 2012
In 2012, Amer Sports will continue to invest into executing its long-term
strategy and sustaining profitable growth.
Amer Sports expects broad-based improvement across business areas in 2012. In
Winter Sports Equipment, the slow start of the 2011/12 season due to the warm
weather in key markets is expected to have an adverse impact on the 2012 pre-
orders. Apparel and Footwear pre-orders for spring/summer are up by 28% and
14%, respectively. Overall, Amer Sports' 2012 net sales in local currencies are
expected to increase from 2011.
TABLES
The notes are an integral part of consolidated interim financial information.
Unaudited
EUR million
CONSOLIDATED RESULTS
1-3/ 1-3/ Change
2012 2011 % 2011
-----------------------------------------------------------------------
NET SALES 489.8 449.1 9 1,880.8
Cost of goods sold -273.5 -254.5 -1,063.4
-----------------------------------------------------------------------
GROSS PROFIT 216.3 194.6 11 817.4
License income 2.0 2.3 8.7
Other operating income 0.5 0.5 5.4
R&D expenses -17.0 -15.2 -64.2
Selling and marketing expenses -132.6 -117.0 -475.9
Administrative and other
expenses -40.2 -39.5 -155.9
-----------------------------------------------------------------------
EARNINGS BEFORE
INTEREST AND TAXES 29.0 25.7 13 135.5
% of net sales 5.9 5.7 7.2
Financing income and expenses -5.0 -4.3 -20.5
-----------------------------------------------------------------------
EARNINGS BEFORE TAXES 24.0 21.4 12 115.0
Taxes -5.3 -4.3 -24.1
-----------------------------------------------------------------------
NET RESULT 18.7 17.1 9 90.9
-----------------------------------------------------------------------
Attributable to:
Equity holders of the parent
company 18.7 17.1 90.8
Non-controlling interests 0.0 0.0 0.1
Earnings per share, EUR 0.15 0.13 0.71
Earnings per share, diluted, EUR 0.15 0.13 0.71
Adjusted average number of
shares in issue less own shares, million 117.6 121.0 119.9
Adjusted average number of
shares in issue less own shares,
diluted, million 117.8 121.1 120.1
Equity per share, EUR 6.14 6.12 7.03
ROCE, % *) 13.3 11.6 13.2
ROE, % 9.7 9.0 11.2
Average rates used:
EUR 1.00 = USD 1.3098 1.3660 1.3926
*) 12 months' rolling average
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1-3/ 1-3/
2012 2011 2011
--------------------------------------------------------------
Net result 18.7 17.1 90.9
Other comprehensive income
Translation differences -12.4 -17.8 7.7
Cash flow hedges -8.8 -4.2 17.3
Income tax related to
cash flow hedges 2.3 1.1 -4,5
--------------------------------------------------------------
Other comprehensive income,
net of tax -18.9 -20.9 20.5
--------------------------------------------------------------
Total comprehensive income -0.2 -3.8 111.4
--------------------------------------------------------------
Total comprehensive income attributable to:
Equity holders of the parent
company -0.2 -3.8 111.3
Non-controlling interests 0.0 0.0 0.1
NET SALES BY BUSINESS SEGMENT
1-3/ 1-3/ Change
2012 2011 % 2011
----------------------------------------------
Winter and Outdoor 256.5 233.5 10 1,137.6
Ball Sports 173.6 159.0 9 511.0
Fitness 59.7 56.6 5 232.2
----------------------------------------------
Total 489.8 449.1 9 1,880.8
----------------------------------------------
EBIT BY BUSINESS SEGMENT
1-3/ 1-3/ Change
2012 2011 % 2011
------------------------------------------
Winter and Outdoor 10.7 9.3 15 118.5
Ball Sports 19.9 17.7 12 25.0
Fitness 3.9 3.3 18 10.3
Headquarters -5.5 -4.6 -18.3
------------------------------------------
Total 29.0 25.7 13 135.5
------------------------------------------
GEOGRAPHIC BREAKDOWN OF NET SALES 1-3/ 1-3/ Change
2012 2011 % 2011
----------------------------------------
EMEA 226.7 214.1 6 917.6
Americas 205.7 186.4 10 742.1
Asia Pacific 57.4 48.6 18 221.1
----------------------------------------
Total 489.8 449.1 9 1,880.8
----------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
1-3/ 1-3/
Note 2012 2011 2011
----------------------------------------------------------------
Earnings before interest and taxes 29.0 25.7 135.5
Adjustments to cash flow from
operating activities and depreciation 5.5 5.5 37.9
Change in working capital 89.4 73.4 -97.6
----------------------------------------------------------------
Cash flow from operating activities
before financing items and taxes 123.9 104.6 75.8
Interest paid and received -2.2 -1.2 -20.5
Income taxes paid and received -11.1 -7.2 -24.7
----------------------------------------------------------------
Net cash flow from operating activities 110.6 96.2 30.6
Acquired operations - - -6.5
Sold operations 1.1 - 5.3
Acquired non-controlling interests -3.7 - -
Capital expenditure on non-current
tangible and intangible assets -10.9 -9.3 -51.4
Proceeds from sale of tangible non-
current assets 0.3 0.2 0.6
----------------------------------------------------------------
Net cash flow from investing activities -13.2 -9.1 -52.0
Net cash flow after investing activities
(free cash flow) 97.4 87.1 -21.4
Repurchase of own shares - -9.2 -36.7
Hybrid bond 4 -67.2 -7.2 -7.2
Dividends paid 5 -38.9 -36.4 -36.4
Change in debt and other financing
items 122.3 0.2 94.9
----------------------------------------------------------------
Net cash flow from financing activities 16.2 -52.6 14.6
Cash and cash equivalents on
January 1 78.8 84.7 84.7
Translation differences -0.8 -1.1 0.9
Change in cash and cash equivalents 113.6 34.5 -6.8
----------------------------------------------------------------
Cash and cash equivalents on
March 31/December 31 191.6 118.1 78.8
CONSOLIDATED BALANCE SHEET
Note March 31, 2012 March 31, 2011 December 31, 2011
-------------------------------------------------------------------------------
Assets
-------------------------------------------------------------------------------
Goodwill 287.1 276.7 295.7
Other intangible non- 213.7 209.7
current assets 214.5
Tangible non-current 153.3 139.5
assets 157.8
Other non-current assets 98.0 98.0 99.6
Inventories and work in 317.4
progress 343.6 359.7
Receivables 486.2 399.1 611.9
Cash and cash equivalents 191.6 118.1 78.8
-------------------------------------------------------------------------------
Total assets 2 1,773.5 1,558.5 1,818.0
-------------------------------------------------------------------------------
Shareholders' equity and
liabilities
-------------------------------------------------------------------------------
Shareholders' equity 723.7 739.4 829.4
Long-term interest- 403.9 276.7
bearing liabilities 251.4
Other long-term 14.4 21.3
liabilities 22.7
Current interest-bearing 197.2 98.8
liabilities 219.0
Other current liabilities 399.7 391.8 463.1
Provisions 34.6 30.5 32.4
-------------------------------------------------------------------------------
Total shareholders'
equity and liabilities 1,773.5 1,558.5 1,818.0
-------------------------------------------------------------------------------
Equity ratio, % 40.8 47.4 45.6
Gearing, % 57 35 47
EUR 1.00 = USD 1.3356 1.4141 1.2939
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Fair Inves-
Fund Trans- value ted
Sh- Pre- for lation and unre- Retai-
are mi- own diffe- other stricted ned
capi- um sha- ren- reser- equity Hybrid ear-
Note tal fund res ces ves reserve bond nings Total
------------------------------------------------------------------------------
Balance at
Jan. 1,
2011 292.2 12.1 -5.6 -34.3 -5.6 151.5 60.0 317.3 787.6
Other
compre-
hensive
income:
Translation
differences -17.8 -17.8
Cash flow
hedges -4.2 -4.2
Income tax
related to
cash flow
hedges 1.1 1.1
Net result 17.1 17.1
Total
comp-
rehensive
income -17.8 -3.1 17.1 -3.8
Transact-
ions with
owners:
Repurch-
ase of
own
shares -9.2 -9.2
Share-
based
incentive
programs 5.4 0.5 5.9
Dividend
distribution 5 -36.3 -36.3
Interest on
hybrid
bond -7.2 -7.2
------------------------------------------------------------------------------
Balance at
March 31,
2011 292.2 12.1 -9.4 -52.1 -8.7 151.5 60.0 291.4 737.0
Balance at
Jan. 1,
2012 292.2 12.1 -36.9 -26.6 7.2 151.5 60.0 367.3 826.8
Other
compre-
hensive
income:
Translation
differences -12.4 -12.4
Cash flow
hedges -8.8 -8.8
Income tax
related to
cash flow
hedges 2.3 2.3
Net result 18.7 18.7
Total
comp-
rehensive
income -12.4 -6.5 18.7 -0.2
Transact-
ions with
owners:
Cancella-
tion of own
shares 27.2 -27.2 -
Share-
based
incentive
programs 2.7 2.9 -2.4 3.2
Dividend
distribution 5 -38.9 -38.9
Hybrid
bond 4 -60.0 -7.2 -67.2
------------------------------------------------------------------------------
Balance at
March 31,
2012 292.2 12.1 -7.0 -39.0 0.7 154.4 - 310.3 723.7
Total
Non- share-
cont- hold-
rolling ers'
inte- equ-
Note rests ity
---------------------------------
Balance at
Jan. 1,
2011 2.6 790.2
Other
compre-
hensive
income:
Translation
differences -17.8
Cash flow
hedges -4.2
Income tax
related to
cash flow
hedges 1.1
Net result 17.1
Total
comp-
rehensive
income -3.8
Transact-
ions with
owners:
Repurch-
ase of
own
shares -9.2
Share-
based
incentive
programs 5.9
Dividend
distribution 5 -0.1 -36.4
Interest on
hybrid
bond -7.2
Other
change -0.1 -0.1
---------------------------------
Balance at
March 31,
2011 2.4 739.4
Balance at
Jan. 1,
2012 2.6 829.4
Other
compre-
hensive
income:
Translation
differences -12.4
Cash flow
hedges -8.8
Income tax
related to
cash flow
hedges 2.3
Net result 18.7
Total
comp-
rehensive
income -0.2
Transact-
ions with
owners:
Share-
based
incentive
programs 3.2
Dividend
distribution 5 -38.9
Hybrid
bond 4 -67.2
Other change -2.6 -2.6
---------------------------------
Balance at
March 31,
2012 - 723.7
QUARTERLY BREAKDOWN OF NET SALES AND EBIT
Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/
NET SALES 2012 2011 2011 2011 2011 2010 2010 2010
-------------------------------------------------------------------
Winter and Outdoor 256.5 375.0 395.7 133.4 233.5 416.5 300.3 116.5
Ball Sports 173.6 109.0 106.7 136.3 159.0 107.3 114.0 153.9
Fitness 59.7 72.9 56.8 45.9 56.6 59.6 52.6 47.1
-------------------------------------------------------------------
Total 489.8 556.9 559.2 315.6 449.1 583.4 466.9 317.5
-------------------------------------------------------------------
Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/
EBIT 2012 2011 2011 2011 2011 2010 2010 2010
-------------------------------------------------------------------
Winter and Outdoor 10.7 45.0 79.3 -15.1 9.3 51.2 58.2 -24.2
Ball Sports 19.9 -0.7 -1.1 9.1 17.7 -5.4 3.5 17.0
Fitness 3.9 4.5 2.8 -0.3 3.3 2.0 2.8 -3.7
Headquarters -5.5 -2.5 -6.6 -4.6 -4.6 0.6 -8.7 -6.0
-------------------------------------------------------------------
Total 29.0 46.3 74.4 -10.9 25.7 48.4 55.8 -16.9
-------------------------------------------------------------------
THE 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, 2012, as adopted by the EU. The IFRS
recognition and measurement principles as described in the annual financial
statements for 2011 have also been applied in the preparation of the interim
financial information, with the changes mentioned below.
The relative proportion of the estimated tax charge for the full financial year
has been charged against the result for the period.
Standards, interpretations and amendments adopted from the beginning of 2012:
The following new standards, interpretations and amendments have been adopted
when applicable: IFRS 7 (amendment) and IFRS 12 (amendment) and the annual
improvements. The amendments did not have any material impact on the
consolidated financial statements.
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 the Group's
accounting policies. The decisions concerning assessing the performance of
segments and allocation of 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.
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
----------------------------------------------------------------------
1-3/2012
Winter and Outdoor 256.5 10.7 791.0
Ball Sports 173.6 19.9 414.3
Fitness 59.7 3.9 234.2
----------------------------------------------------------------------
Segments, total 489.8 34.5 1,439.5
----------------------------------------------------------------------
Unallocated items*) -5.5 -5.0 334.0
----------------------------------------------------------------------
Group total 489.8 29.0 -5.0 24.0 1,773.5
----------------------------------------------------------------------
1-3/2011
Winter and Outdoor 233.5 9.3 717.4
Ball Sports 159.0 17.7 378.1
Fitness 56.6 3.3 218.2
------------------------------------------------------
Segments, total 449.1 30.3 1,313.7
------------------------------------------------------
Unallocated items*) -4.6 -4.3 244.8
------------------------------------------------------
Group total 449.1 25.7 -4.3 21.4 1,558.5
------------------------------------------------------
1-12/2011
Winter and Outdoor 1,137.6 118.5 960.0
Ball Sports 511.0 25.0 384.4
Fitness 232.2 10.3 253.8
------------------------------------------------------
Segments, total 1,880.8 153.8 1,598.2
------------------------------------------------------
Unallocated items*) -18.3 -20.5 219.8
------------------------------------------------------
Group total 1,880.8 135.5 -20.5 115.0 1,818.0
------------------------------------------------------
*) Earnings before interest and taxes include income and expenses of corporate
headquarters.
GEOGRAPHIC BREAKDOWN OF NET SALES
1-3/ 1-3/
2012 2011 2011
---------------------------------
EMEA 226.7 214.1 917.6
Americas 205.7 186.4 742.1
Asia Pacific 57.4 48.6 221.1
---------------------------------
Total 489.8 449.1 1,880.8
---------------------------------
3. DERIVATIVE FINANCIAL INSTRUMENTS
March March December
31, 2012 31, 2011 31, 2011
--------------------------------------------------------
Nominal value
Foreign exchange derivatives 820.9 648.1 922.6
Interest rate swaps 100.0 165.7 50.0
Cross currency swaps 56.5 - 56.1
Fair value
Foreign exchange derivatives 4.4 -4.2 2.0
Interest rate swaps -3.0 -1.7 -3.1
Cross currency swaps 0.5 - 0.5
4. HYBRID BOND
On March 12,012 Amer Sports redeemed the EUR 60 million hybrid bond issued on
March 12, 2009.
5. DIVIDENDS
Dividends distributed in March 2012 by Amer Sports to its shareholders and
minority shareholders of its subsidiaries amounted to EUR 38.9 million relating
to the year ending on December 31, 2011 (2011: 36.4). Dividends distributed to
the shareholders of Amer Sports Corporation were EUR 0.33 per share and in total
EUR 38.9 million (2011: EUR 0.30 per share and in total EUR 36.3 million).
6. CONTINGENT LIABILITIES AND SECURED ASSETS
March March December
31, 2012 31, 2011 31, 2011
-------------------------------------------------------------------------
Guarantees 20.8 15.0 21.4
Liabilities for leasing and rental agreements 125.8 116.3 123.2
Other liabilities 37.0 23.4 33.8
There are no guarantees or contingencies given for the management of the
company, the shareholders or the associated companies.
7. ONGOING LITIGATIONS
The Group has extensive international operations and is involved in a number of
legal proceedings, including product liability suits. The Group does not expect
the outcome of any legal proceedings currently pending to have materially
adverse effect upon its consolidated results or financial position.
8. SEASONALITY
Although Amer Sports operates in a number of sporting goods segments during all
four seasons, its business is subject to seasonal fluctuations. Historically,
the third and fourth quarters of a financial year have been the strongest
quarters for Amer Sports in terms of both net sales and profitability, mainly
because sales of winter sports equipment ahead of the winter season typically
take place during the third and fourth quarters. The summer season for ball
sports balances seasonality to a certain extent, as the strongest quarters for
the Ball Sports segment are the first and second quarters. Usually the net cash
flow from operating activities is very strong in the first quarter when the
income from winter sports equipment realizes. Especially during the third
quarter, the net cash flow from operating activities is tied up in working
capital.
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.
AMER SPORTS CORPORATION
Board of Directors
[HUG#1606799]
© 2024 Nasdaq, Inc. All Rights Reserved |