2013-07-25 12:00:00 CEST
2013-07-25 12:01:56 CEST
REGULATED INFORMATION
Amer Sports - Interim report (Q1 and Q3)
Amer Sports Corporation Interim Report January-June 2013
Amer Sports Corporation
INTERIM REPORT
July 25, 2013 at 1:00 pm
APRIL-JUNE 2013
* Net sales totaled EUR 377.2 million (April-June 2012: EUR 353.8 million). In
local currencies, net sales increased by 9%.
* Gross margin 43.6% (43.1%).
* EBIT EUR -18.7 million (-19.2).
* Earnings per share EUR -0.16 (-0.19).
* Net cash flow after investing activities EUR -50.0 million (-44.2).
* Positive outlook for 2013 unchanged.
JANUARY-JUNE 2013
* Net sales were EUR 870.2 million (January-June 2012: EUR 843.6 million). In
local currencies, net sales increased by 5%.
* Gross margin 43.9% (43.7%).
* EBIT EUR 7.7 million (10.4).
* Earnings per share EUR -0.03 (-0.04).
* Net cash flow after investing activities EUR 17.9 million (53.2).
* Gearing 65% (December 31, 2012: 59%).
OUTLOOK FOR 2013
In 2013, Amer Sports' net sales growth in local currencies is expected to meet
at minimum the company's long-term annual 5% growth target and EBIT margin
excluding non-recurring items is expected to improve from 2012. Amer Sports
expects the trading environment to remain challenging in 2013. The company will
continue to focus on softgoods growth, consumer-driven product and marketing
innovation, commercial expansion and operational excellence.
KEY FIGURES
EUR million 4-6/2013 4-6/2012*) 1-6/2013 1-6/2012*) 2012*)
--------------------------------------------------------------------------------
Net sales 377.2 353.8 870.2 843.6 2,064.0
Gross profit 164.3 152.5 382.0 368.8 900.6
Gross profit % 43.6 43.1 43.9 43.7 43.6
EBIT excluding non-recurring -18.7 -19.2
items 7.7 10.4 138.7
EBIT % excluding non-recurring
items 0.9 1.2 6.7
Non-recurring items**) - - - - -24.8
EBIT total -18.7 -19.2 7.7 10.4 113.9
EBIT % 0.9 1.2 5.5
Financing income and expenses -5.3 -9.6 -12.0 -15.0 -31.5
Earnings before taxes -24.0 -28.8 -4.3 -4.6 82.4
Net result -18.0 -22.3 -3.2 -3.5 57.9
Earnings per share, EUR -0.16 -0.19 -0.03 -0.04 0.48
Net cash flow after investing -50.0 -44.2
activities 17.9 53.2 71.8
Equity ratio, % at period end 39.9 37.9 39.1
Gearing, % at period end 65 65 59
Personnel at period end 7,382 7,226 7,186
Average rates used, EUR/USD 1.31 1.29 1.31 1.30 1.28
*) Restated in accordance with revised IAS 19 standard (postemployment benefit
plans).
**) Non-recurring items are exceptional transactions that are not related to
normal business operations. The most common non-recurring items are capital
gains, exceptional write-downs, provisions for planned restructuring and
penalties. Non-recurring items are normally specified individually if they have
a material impact on EBIT.
HEIKKI TAKALA, PRESIDENT AND CEO:"We delivered a solid quarter with several categories achieving double-digit
growth, despite challenging trading conditions especially in Western Europe.
Second quarter, however, is traditionally a low quarter for Amer Sports,
representing less than 20% of our full year sales. Through the portfolio, we
mitigated the late and cold spring/summer which impacted adversely especially
Wilson's Individual Ball Sports (stable) and Cycling (-5%).
Our full year sales outlook is positive, driven by strong continuous momentum in
Apparel, Footwear, Sports Instruments and Fitness, as well as business to
consumers and emerging markets. Our Winter Sports Equipment pre-order growth at
4% is good in light of the cautious customer sentiment and prudent order
approach especially in Europe. The full year profitability picture is also
positive and in line with our plan, reflecting solid sales, gross margin and
increasing OPEX efficiencies in the second half of the year.
All in all, I'm pleased with our business progress and especially the strong on-
going momentum in our strategic growth areas."
For further information, please contact:
Heikki Takala, President and CEO, tel. +358 9 7257 8210
Jussi Siitonen, CFO, tel. +358 9 7257 8212
Samppa Seppälä, 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 3:00 pm Finnish time. To participate in the call, please dial +44 (0)20
3427 1904 (UK/international dial-in number), and the access code 5133669. 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 3427 0598, and the access code 5133669#.
THIRD QUARTER RESULTS BULLETIN
Amer Sports will publish its Q3/2013 results bulletin on Thursday, October
24, 2013 at approximately 1:00 pm Finnish time.
CAPITAL MARKETS DAY
Amer Sports is hosting a Capital Markets Day for analysts and portfolio managers
on August 29, 2013 in Helsinki, Finland.
INTERIM REPORT
NET SALES AND EBIT APRIL-JUNE 2013
Amer Sports' net sales in April-June 2013 were EUR 377.2 million (April-June
2012: 353.8). Net sales increased by 9% in local currencies. The fastest growth
took place in Sports Instruments, up by 31%, Apparel, up by 22%, Fitness, up by
18% and Footwear, up by 17%. Strong growth continued in emerging markets and
business to consumers.
Net sales by business segment
4-6/ 4-6/ Change Change % of sales % of sales
EUR million 2013 2012 % %*) 4-6/2013 4-6/2012 2012
--------------------------------------------------------------------------
Winter and Outdoor 168.7 150.9 12 15 45 43 1,221.2
Ball Sports 144.2 146.5 -2 1 38 41 569.7
Fitness 64.3 56.4 14 18 17 16 273.1
--------------------------------------------------------------------------
Total 377.2 353.8 7 9 100 100 2,064.0
--------------------------------------------------------------------------
*) In local currencies
Geographic breakdown of net sales
4-6/ 4-6/ Change Change % of sales % of sales
EUR million 2013 2012 % %*) 4-6/2013 4-6/2012 2012
--------------------------------------------------------------------
EMEA 144.5 133.1 9 10 38 38 962.7
Americas 177.6 167.4 6 8 47 47 834.1
Asia Pacific 55.1 53.3 3 13 15 15 267.2
--------------------------------------------------------------------
Total 377.2 353.8 7 9 100 100 2,064.0
--------------------------------------------------------------------
*) In local currencies
Gross margin improved 0.5 percentage points to 43.6% driven by Apparel, Cycling
and Fitness.
Group EBIT was EUR -18.7 million (-19.2). In local currencies, increased sales
volumes contributed approximately EUR 14 million to EBIT while higher gross
margins contributed approximately EUR 2 million. Spending in strategic operating
expenses in distribution was the main driver of the operating expenses increase
of approximately EUR 15 million.
EBIT excluding non-recurring items by business segment
4-6/ 4-6/
EUR million 2013 2012 2012
----------------------------------------------------
Winter and Outdoor -27.1 -25.4 113.8
Ball Sports 7.8 9.7 28.0
Fitness 4.3 1.0 17.0
Headquarters*) -3.7 -4.5 -20.1
----------------------------------------------------
EBIT excluding non-recurring items -18.7 -19.2 138.7
----------------------------------------------------
Non-recurring items - - -24.8
----------------------------------------------------
EBIT total -18.7 -19.2 113.9
----------------------------------------------------
*) Headquarters segment consists of Group administration, shared services
functions, other non-operational income and expenses and fair valuation of
share-based compensations.
Net financial expenses were EUR 5.3 million (9.6) including net interest
expenses of EUR 5.8 million (8.1). Net foreign exchange gains and other
financial items were EUR 0.5 million (EUR 1.5 million losses). Earnings before
taxes totaled EUR -24.0 million (-28.8) and taxes were EUR +6.0 million (+6.5).
Earnings per share were EUR -0.16 (-0.19).
NET SALES AND EBIT JANUARY-JUNE 2013
Amer Sports' net sales in January-June 2013 were EUR 870.2 million (January-June
2012: EUR 843.6 million). Net sales increased by 5% in local currencies. The
fastest growth took place in Apparel, up by 24%, Sports Instruments, up by 18%,
Fitness, up by 12% and Footwear, up by 5%.
Net sales by business segment
1-6/ 1-6/ Change Change % of sales % of sales
EUR million 2013 2012 % %*) 1-6/2013 1-6/2012 2012
--------------------------------------------------------------------------
Winter and Outdoor 435.2 407.4 7 8 50 48 1,221.2
Ball Sports 308.2 320.1 -4 -2 35 38 569.7
Fitness 126.8 116.1 9 12 15 14 273.1
--------------------------------------------------------------------------
Total 870.2 843.6 3 5 100 100 2,064.0
--------------------------------------------------------------------------
*) In local currencies
Geographic breakdown of net sales
1-6/ 1-6/ Change Change % of sales % of sales
EUR million 2013 2012 % %*) 1-6/2013 1-6/2012 2012
--------------------------------------------------------------------
EMEA 385.0 359.8 7 8 44 43 962.7
Americas 372.9 373.1 0 1 43 44 834.1
Asia Pacific 112.3 110.7 1 9 13 13 267.2
--------------------------------------------------------------------
Total 870.2 843.6 3 5 100 100 2,064.0
--------------------------------------------------------------------
*) In local currencies
Gross margin was 43.9% (43.7%).
Group EBIT was EUR 7.7 million (10.4). In local currencies, increased sales
volumes contributed approximately EUR 18 million to EBIT while higher gross
margins contributed approximately EUR 2 million. Spending in strategic operating
expenses in distribution was the main driver of the operating expenses increase
of approximately EUR 23 million.
EBIT excluding non-recurring items by business segment
1-6/ 1-6/
EUR million 2013 2012 2012
----------------------------------------------------
Winter and Outdoor -12.9 -14.7 113.8
Ball Sports 25.2 29.6 28.0
Fitness 3.9 4.9 17.0
Headquarters*) -8.5 -9.4 -20.1
----------------------------------------------------
EBIT excluding non-recurring items 7.7 10.4 138.7
----------------------------------------------------
Non-recurring items - - -24.8
----------------------------------------------------
EBIT total 7.7 10.4 113.9
----------------------------------------------------
*) Headquarters segment consists of Group administration, shared services
functions, other non-operational income and expenses and fair valuation of
share-based compensations.
Net financial expenses totaled EUR 12.0 million (15.0) including net interest
expenses of EUR 11.6 million (13.0). Net foreign exchange losses and other
financial items totaled EUR 0.4 million losses (EUR 2.0 million losses).
Earnings before taxes totaled EUR -4.3 million (-4.6) and taxes were EUR +1.1
million (+1.1). Earnings per share were EUR -0.03 (-0.04).
CASH FLOW AND FINANCING
Net cash flow after investing activities (free cash flow) was EUR 17.9 million
(53.2) in January-June. Working capital in total decreased by EUR 37.3 million
(82.4). Inventories increased by EUR 80.7 million (59.6) and receivables
decreased by EUR 166.3 million (210.7). Payables decreased by 48.3 million
(68.7).
At the end of June, the Group's net debt amounted to EUR 453.7 million (December
31, 2012: 434.3).
Interest-bearing liabilities amounted to EUR 550.6 million (December
31, 2012: 576.8) consisting of short-term debt of EUR 177.5 million and long-
term debt of EUR 373.1 million. The average interest rate on the Group's
interest-bearing liabilities was 3.8% (December 31, 2012: 3.6%).
Short-term debt consists mainly of repayments of long-term loans of EUR 92.4
million (December 31, 2012: 42.3) and commercial papers of EUR 78.0 million
(151.6) which Amer Sports had issued in the Finnish market. The total size of
the commercial paper program is EUR 500 million.
Cash and cash equivalents totaled EUR 96.9 million (December 31, 2012: 142.5).
Amer Sports had not used any of its EUR 240 million committed revolving credit
facilities at the end of the review period.
In April 2013, Amer Sports signed a 5-year EUR 50 million term loan facility
with Pohjola Bank plc. The proceeds of the term loan facility have been used for
the repayment of debt and general corporate purposes.
The equity ratio at the end of the June was 39.9% (December 31, 2012: 39.1%) and
gearing was 65% (December 31, 2012: 59%).
CAPITAL EXPENDITURE AND INVESTMENTS
The Group's capital expenditure totaled EUR 18.8 million (21.7). Depreciation
totaled EUR 21.6 million (20.0). Capital expenditure for the whole year is
expected to be approximately EUR 50 million (49.2).
BUSINESS SEGMENT REVIEWS
WINTER AND OUTDOOR
4-6/ 4-6/ Ch Ch 1-6/ 1-6/ Ch Ch
EUR million 2013 2012 % %*) 2013 2012 % %*) 2012
------------------------------------------------------------------------
Net sales
Winter Sports Equipment 13.7 14.4 -5 4 56.5 58.1 -3 1 425.0
Footwear 65.5 56.7 16 17 167.8 160.8 4 5 314.4
Apparel 30.0 25.4 18 22 93.1 76.6 22 24 248.6
Cycling 27.7 29.6 -6 -5 64.3 65.9 -2 -1 129.0
Sports Instruments 31.8 24.8 28 31 53.5 46.0 16 18 104.2
Net sales, total 168.7 150.9 12 15 435.2 407.4 7 8 1,221.2
EBIT excluding non-
recurring items -27.1 -25.4 -12.9 -14.7 113.8
EBIT % excluding non-
recurring items 9.3
Non-recurring items - - - - -18.4
EBIT total -27.1 -25.4 -12.9 -14.7 95.4
Personnel at period end 4,738 4,695 1 4,639
*) Change in local currencies
In April-June, Winter and Outdoor's net sales were EUR 168.7 million (150.9), an
increase of 15% in local currencies.
4-6/ 4-6/ Ch Ch 1-6/ 1-6/ Ch Ch
EUR million 2013 2012 % %*) 2013 2012 % %*) 2012
----------------------------------------------------------
EMEA 97.0 84.9 14 16 279.1 256.3 9 9 774.4
Americas 45.4 38.4 18 19 99.4 92.0 8 9 289.5
Asia Pacific 26.3 27.6 -5 4 56.7 59.1 -4 3 157.3
----------------------------------------------------------
Total 168.7 150.9 12 15 435.2 407.4 7 8 1,221.2
----------------------------------------------------------
*) Change in local currencies
In April-June, EBIT was EUR -27.1 million (-25.4). Increased sales volumes
contributed approximately EUR 11 million to the EBIT while higher gross margins
contributed approximately EUR 2 million. Operating expenses increased by
approximately EUR 16 million due to sales and distribution costs (all in local
currencies).
Winter Sports Equipment
In April-June, Winter Sports Equipment's net sales were EUR 13.7 million (14.4),
an increase of 4% in local currencies. The second quarter is seasonally low in
Winter Sports Equipment as all focus is on order intake. Compared to last year,
pre-orders for the next season are up by 4%.
Footwear
In April-June, Footwear's net sales were EUR 65.5 million (56.7), an increase of
17% in local currencies with double-digit growth in all regions. US and Russia
were leading the growth.
Apparel
In April-June, Apparel's net sales were EUR 30.0 million (25.4), an increase of
22% in local currencies. Growth was generated by Salomon in particular. Sales
increased in all geographical regions.
Cycling
In April-June, Cycling's net sales were EUR 27.7 million (29.6), a decrease of
5% in local currencies. Sales in US and Central Europe decreased due to the late
start of the season.
Sports Instruments
In April-June, Sports Instruments' net sales were EUR 31.8 million (24.8), an
increase of 31% in local currencies. Sales increase of outdoor and training
instruments was driven by Ambit2 family offering and dive instruments.
BALL SPORTS
4-6/ 4-6/ Ch Ch 1-6/ 1-6/ Ch Ch
EUR million 2013 2012 % %*) 2013 2012 % %*) 2012
---------------------------------------------------------------------
Net sales
Individual Ball Sports 85.5 87.3 -2 1 181.0 184.9 -2 0 318.8
Team Sports 58.7 59.2 -1 1 127.2 135.2 -6 -4 250.9
Net sales, total 144.2 146.5 -2 1 308.2 320.1 -4 -2 569.7
EBIT excluding non-
recurring items 7.8 9.7 25.2 29.6 28.0
EBIT % excluding non-
recurring items 5.4 6.6 8.2 9.2 4.9
Non-recurring items - - - - -5.5
EBIT total 7.8 9.7 25.2 29.6 22.5
Personnel at period end 1,618 1,611 0 1,592
*) Change in local currencies
In April-June, Ball Sports' net sales were EUR 144.2 million (146.5), and were
at last year's level in local currencies. Broad based growth in the segment was
mitigated by poor Individual Ball Sport market conditions in EMEA and by the
continued destocking trend in the US baseball bats market.
4-6/ 4-6/ Ch Ch 1-6/ 1-6/ Ch Ch
EUR million 2013 2012 % %*) 2013 2012 % %*) 2012
--------------------------------------------------------
EMEA 31.6 33.7 -6 -6 73.6 75.6 -3 -2 118.0
Americas 93.2 92.3 1 3 194.4 202.6 -4 -3 370.1
Asia Pacific 19.4 20.5 -5 3 40.2 41.9 -4 3 81.6
--------------------------------------------------------
Total 144.2 146.5 -2 1 308.2 320.1 -4 -2 569.7
--------------------------------------------------------
*) Change in local currencies
In April-June, EBIT was EUR 7.8 million (9.7). The EBIT was impacted by lower
gross margins in EMEA due to the weaker euro, and lower sales volumes and
margins of DeMarini bats. Operating expenses remained at last year's level (all
in local currencies).
Individual Ball Sports
In April-June, Individual Ball Sports' net sales were EUR 85.5 million (87.3),
and were at last year's level in local currencies. Asia Pacific and the Americas
grew by 8% and 4% respectively, offset by the poor market conditions in EMEA
declining by 7%. Sales of golf balls, tennis balls and tennis footwear
increased.
Team Sports
In April-June, Team Sports' net sales were EUR 58.7 million (59.2), and were at
last year's level in local currencies. Sales of DeMarini bats product category
declined by 17% due to the trade destocking trend.
FITNESS
4-6/ 4-6/ Ch Ch 1-6/ 1-6/ Ch Ch
EUR million 2013 2012 % %*) 2013 2012 % %*) 2012
-----------------------------------------------------------------
Net sales 64.3 56.4 14 18 126.8 116.1 9 12 273.1
EBIT excluding non-
recurring items 4.3 1.0 3.9 4.9 17.0
EBIT % excluding non-
recurring items 6.7 1.8 3.1 4.2 6.2
Non-recurring items - - - - -0.1
EBIT total 4.3 1.0 3.9 4.9 16.9
Personnel at period end 858 794 8 821
*) Change in local currencies
In April-June, Fitness' net sales were EUR 64.3 million (56.4), an increase of
18% in local currencies. Growth occurred in all geographical regions, especially
in Asia Pacific.
The commercial business (clubs and institutions) was up by 21% in local
currencies. Consumer business (home use) was down by 8%.
4-6/ 4-6/ Ch Ch 1-6/ 1-6/ Ch Ch
EUR million 2013 2012 % %*) 2013 2012 % %*) 2012
------------------------------------------------------
EMEA 15.9 14.5 10 12 32.3 27.9 16 18 70.3
Americas 39.0 36.7 6 9 79.1 78.5 1 2 174.5
Asia Pacific 9.4 5.2 81 106 15.4 9.7 59 75 28.3
------------------------------------------------------
Total 64.3 56.4 14 18 126.8 116.1 9 12 273.1
------------------------------------------------------
*) Change in local currencies
In April-June, EBIT was EUR 4.3 million (1.0). The improvement was due to
increased sales volumes and gross margin.
PERSONNEL
At the end of June, the number of Group employees was 7,382 (December
31, 2012: 7,186). 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.
June 30, June 30, Change December 31,
2013 2012 % 2012
----------------------------------------------------------------------
Winter and Outdoor 4,738 4,695 1 4,639
Ball Sports 1,618 1,611 0 1,592
Fitness 858 794 8 821
Headquarters and shared services 168 126 33 134
----------------------------------------------------------------------
Total 7,382 7,226 2 7,186
----------------------------------------------------------------------
June 30, June 30, Change December 31,
2013 2012 % 2012
--------------------------------------------------
EMEA 4,210 4,269 -1 4,135
Americas 2,434 2,306 6 2,366
Asia Pacific 738 651 13 685
--------------------------------------------------
Total 7,382 7,226 2 7,186
--------------------------------------------------
CHANGE IN GROUP MANAGEMENT
On May 13, 2013 Rob Barker was appointed President of Amer Sports' Fitness
business unit effective June 1, 2013. Paul Byrne, the former President Amer
Sport's Fitness, will retire from the company effective September 1, 2013.
Barker became a member of the Amer Sport's Executive Board, and he reports to
the President and CEO Heikki Takala.
SHARES AND SHAREHOLDERS
The company's share capital totaled EUR 292,182,204 on June 30, 2013 and the
number of shares was 118,517,285. Each share entitles the holder to one vote at
the company's general meeting.
Authorizations
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 for 18 months from the decision of the Annual General Meeting. The Board
of Directors has not utilized the authorization.
The Annual General Meeting held on March 7, 2013 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 trading on regulated
market organized by NASDAQ OMX Helsinki Ltd 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 Ltd and Euroclear Finland
Ltd. The Repurchase Authorization is valid for eighteen months from the decision
of the Annual General Meeting.
The Annual General Meeting held on March 7, 2013 authorized the Board of
Directors to decide on issuing new shares and/or conveying the Company's own
shares held by the Company as follows: By virtue of the authorization, the Board
of Directors is entitled to decide on issuing new shares and/or on conveying the
Company's own shares at the maximum amount of 10,000,000 shares in aggregate.
The Board of Directors decides on all the conditions of the share issue. The
issuance or conveyance of shares may be carried out in deviation from the
shareholders' pre-emptive rights (directed issue). The authorization includes
the option to issue own shares to the Company for free. The authorization is
valid until two years from the date of the decision of the Annual General
Meeting, but the authorization to issue new shares and/or convey the Company's
own shares for purposes other than the Company's bonus schemes is valid until
fourteen months from the date of the decision of the Annual General Meeting.
Apart from the above, the Board of Directors has no other authorizations to
issue shares, convertible bonds or warrant programs.
Own shares
Amer Sports' Board of Directors decided on April 25, 2013 to utilize the
authorization given by the Annual General Meeting held on March 7, 2013 to
repurchase Amer Sports shares. The company acquires its own shares in order to
implement share-based incentive plans for 2013-2015 for the group's key
personnel. The repurchases started on April 29, 2013 and will end on December
31, 2013 at the latest. The amount acquired by June 30, 2013 was 382,140. The
amount to be acquired is a maximum of 1 million shares.
At the end of June, Amer Sports held a total of 942,605 shares (732,096) in Amer
Sports Corporation. The number of own shares corresponds to 0.80% (0.62) of all
Amer Sports shares. A total of 4,834 shares granted as share-based incentives
were returned to Amer Sports in accordance with the terms of the incentive plan
as the employment ended.
Trading in shares
A total of 26.7 million (38.8) Amer Sports shares with a value totaling
EUR 340.6 million (381.6) were traded on the NASDAQ OMX Helsinki Ltd in the
review period. Share turnover was 22.7% (33.0%) (expressed as a proportion of
the average number of shares, excluding own shares). The average daily volume in
January-June 2013 was 217,058 shares (313,155).
The closing price of the Amer Sports Corporation share on the NASDAQ OMX
Helsinki Ltd stock exchange on June 30, 2013 was EUR 14.16 (8.99). Shares
registered a high of EUR 14.50 (11.0) and a low of EUR 11.08 (8.39) during the
review period. The average share price was EUR 12.76 (9.83). On June 30, 2013,
the company had a market capitalization of EUR 1,664.9 million (1,058.9),
excluding own shares.
At the end of June, Amer Sports Corporation had 14,217 registered shareholders
(15,178). Ownership outside of Finland and nominee registrations represented
44.2% (45.5%) of the company's shares.
Notification of change in shareholding under the Finnish Securities Market Act
On February 6, 2013, Amer Sports Corporation received information to the effect
that owners of institutional investors and funds, who have given full discretion
over their investments to Silchester International Investors LLP, had fallen
below 5% on February 1, 2013. Silchester International Investors LLP then owned
5,819,555 shares, which represented 4.91% of Amer Sports Corporation's share
capital and voting rights.
DECISIONS OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS
Documentation and press releases relating to the resolutions approved by the
Amer Sports Corporation Annual General Meeting held on March 7, 2013 are
available on the company's website at www.amersports.com/investors.
GROUP-WIDE RESTRUCTURING PROGRAM
Amer Sports' restructuring program, started at the beginning of November 2012,
is continuing as planned. The program will drive further scale and synergies and
cost efficiencies, as well as sustain growth through resource allocation
especially into softgoods and expansion markets and channels. The program is
estimated to deliver an annual cost saving of EUR 20 million once fully executed
by the end of 2014. The program contributes to reaching the Group's long-term
profitability target of 10% EBIT. The expected headcount impact of the
restructuring program once fully implemented is approximately 250, mainly in
Winter and Outdoor.
SIGNIFICANT RISKS AND UNCERTAINTIES
Amer Sports' business is balanced by its broad portfolio of sports and brands,
the increasing share of softgoods in the company portfolio as well as the
company's presence in all major markets. Short-term risks for Amer Sports are
particularly associated with general economic conditions, consumer demand
development in Europe, North America and Japan, the ability to identify and
respond to constantly shifting trends and the ability to leverage advancements
in technologies and to develop new and appealing products.
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 2013
In 2013, Amer Sports' net sales growth in local currencies is expected to meet
at minimum the company's long-term annual 5% growth target and EBIT margin
excluding non-recurring items is expected to improve from 2012. Amer Sports
expects the trading environment to remain challenging in 2013. The company will
continue to focus on softgoods growth, consumer-driven product and marketing
innovation, commercial expansion and operational excellence.
TABLES
The notes are an integral part of consolidated interim financial information.
Unaudited
4-6/2012, 1-6/2012 and full year 2012 figures are restated in accordance with
the amendments to IAS19 standard which came effective on Jan 1, 2013.
EUR million
CONSOLIDATED RESULTS
4-6/ 4-6/ Change 1-6/ 1-6/ Change
2013 2012 % 2013 2012 % 2012
--------------------------------------------------------------------------------
NET SALES 377.2 353.8 7 870.2 843.6 3 2,064.0
Cost of goods sold -212.9 -201.3 -488.2 -474.8 -1,163.4
--------------------------------------------------------------------------------
GROSS PROFIT 164.3 152.5 8 382.0 368.8 4 900.6
License income 1.2 1.9 2.6 3.9 7.5
Other operating income 1.5 2.6 3.4 3.1 6.0
R&D expenses -19.2 -16.8 -37.9 -33.8 -72.2
Selling and marketing
expenses -130.3 -117.8 -269.5 -250.0 -526.8
Administrative and other
expenses -36.2 -41.6 -72.9 -81.6 -176.4
Non-recurring expenses - - - - -24.8
--------------------------------------------------------------------------------
EARNINGS BEFORE
INTEREST AND TAXES -18.7 -19.2 7.7 10.4 -26 113.9
% of net sales -5.0 -5.4 0.9 1.2 5.5
Financing income and expenses -5.3 -9.6 -12.0 -15.0 -31.5
--------------------------------------------------------------------------------
EARNINGS BEFORE TAXES -24.0 -28.8 -4.3 -4.6 82.4
Taxes 6.0 6.5 1.1 1.1 -24.5
--------------------------------------------------------------------------------
NET RESULT -18.0 -22.3 -3.2 -3.5 57.9
--------------------------------------------------------------------------------
Attributable to:
Equity holders of the parent
company -18.0 -22.3 -3.2 -3.5 57.9
Earnings per share, EUR -0.16 -0.19 -0.03 -0.04 0.48
Earnings per share, diluted,
EUR -0.16 -0.19 -0.03 -0.04 0.48
Adjusted average number of
shares in issue less own
shares,
million 117.8 117.7 117.7
Adjusted average number of
shares in issue less own
shares,
diluted, million 118.3 118.0 118.1
Equity per share, EUR 5.86 5.96 6.21
ROCE, % *) 10.4 12.4 10.5
ROE, % -0.9 -0.8 7.4
Average rates used:
EUR 1.00 = USD 1.3054 1.2851 1.3138 1.2975 1.2846
*) 12 months' rolling average
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 4-6/ 4-6/ 1-6/ 1-6/
2013 2012 2013 2012 2012
---------------------------------------------------------------
Net result -18.0 -22.3 -3.2 -3.5 57.9
Other comprehensive income
Items that will not be reclassified
to profit or loss
Remeasurement effects of
postemployment benefit plans 8.6 -2.6 8.6 -5.3 -10.5
Income tax related to
remeasurement effects -3.0 0.9 -3.0 1.8 3.5
Items that may be reclassified to
profit or loss
Translation differences -7.5 21.0 -3.6 8.7 -8.7
Cash flow hedges 2.1 4.8 9.6 -4.0 -19.3
Income tax related to cash
flow hedges -0.5 -1.3 -2.4 1.0 5.0
---------------------------------------------------------------
Other comprehensive income,
net of tax -0.3 22.8 9.2 2.2 -30.0
---------------------------------------------------------------
Total comprehensive income -18.3 0.5 6.0 -1.3 27.9
---------------------------------------------------------------
Total comprehensive income
attributable to:
Equity holders of the parent
company -18.3 0.5 6.0 -1.3 27.9
NET SALES BY BUSINESS SEGMENT
4-6/ 4-6/ Change 1-6/ 1-6/ Change
2013 2012 % 2013 2012 % 2012
----------------------------------------------------------------
Winter and Outdoor 168.7 150.9 12 435.2 407.4 7 1,221.2
Ball Sports 144.2 146.5 -2 308.2 320.1 -4 569.7
Fitness 64.3 56.4 14 126.8 116.1 9 273.1
----------------------------------------------------------------
Total 377.2 353.8 7 870.2 843.6 3 2,064.0
----------------------------------------------------------------
GEOGRAPHIC BREAKDOWN OF NET SALES
4-6/ 4-6/ Change 1-6/ 1-6/ Change
2013 2012 % 2013 2012 % 2012
----------------------------------------------------------
EMEA 144.5 133.1 9 385.0 359.8 7 962.7
Americas 177.6 167.4 6 372.9 373.1 0 834.1
Asia Pacific 55.1 53.3 3 112.3 110.7 1 267.2
----------------------------------------------------------
Total 377.2 353.8 7 870.2 843.6 3 2,064.0
----------------------------------------------------------
EBIT BY BUSINESS SEGMENT
4-6/ 4-6/ Change 1-6/ 1-6/ Change
2013 2012 % 2013 2012 % 2012
--------------------------------------------------------------
Winter and Outdoor -27.1 -25.4 -12.9 -14.7 95.4
Ball Sports 7.8 9.7 -20 25.2 29.6 -15 22.5
Fitness 4.3 1.0 3.9 4.9 -20 16.9
Headquarters -3.7 -4.5 -8.5 -9.4 -20.9
--------------------------------------------------------------
Total -18.7 -19.2 7.7 10.4 -26 113.9
--------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
4-6/ 4-6/ 1-6/ 1-6/
Note 2013 2012 2013 2012 2012
---------------------------------------------------------------------------
Earnings before interest and taxes -18.7 -19.3 7.7 10.3 113.9
Adjustments to cash flow from
operating activities and depreciation 11.7 10.3 22.3 15.2 61.1
Change in working capital -14.5 -7.0 37.3 82.4 -10.9
---------------------------------------------------------------------------
Cash flow from operating activities
before financing items and taxes -21.5 -16.0 67.3 107.9 164.1
Interest paid and received -14.4 -12.8 -18.0 -15.0 -19.9
Income taxes paid and received -2.6 -4.7 -12.8 -15.8 -31.6
---------------------------------------------------------------------------
Net cash flow from operating activities -38.5 -33.5 36.5 77.1 112.6
Sold operations - - - 1.1 1.1
Acquired non-controlling interests - - - -3.7 -3.7
Capital expenditure on non-current
tangible and intangible assets -11.6 -10.8 -18.8 -21.7 -49.2
Proceeds from sale of tangible non-
current assets 0.1 0.1 0.2 0.4 11.0
---------------------------------------------------------------------------
Net cash flow from investing activities -11.5 -10.7 -18.6 -23.9 -40.8
Net cash flow after investing activities
(free cash flow) -50.0 -44.2 17.9 53.2 71.8
Repurchase of own shares -5.2 - -5.2 - -
Interest on hybrid bond - - - -7.2 -7.2
Redemption of the hybrid bond 3 - - - -60.0 -60.0
Dividends paid 4 -41.3 - -41.3 -38.9 -38.9
Change in debt and other financing
items 58.9 68.2 -15.3 190.5 98.9
---------------------------------------------------------------------------
Net cash flow from financing activities 12.4 68.2 -61.8 84.4 -7.2
Cash and cash equivalents on
April 1/January 1 136.1 191.6 142.5 78.8 78.8
Translation differences -1.6 1.1 -1.7 0.3 -0.9
Change in cash and cash equivalents -37.6 24.0 -43.9 137.6 64.6
---------------------------------------------------------------------------
Cash and cash equivalents on
June 30/December 31 96.9 216.7 96.9 216.7 142.5
CONSOLIDATED BALANCE SHEET
June 30, June 30, December 31,
Note 2013 2012 2012
-----------------------------------------------------------------------
Assets
-----------------------------------------------------------------------
Goodwill 290.7 298.1 289.1
Other intangible non-current assets 211.4 213.1 211.4
Tangible non-current assets 162.9 158.5 162.9
Other non-current assets 121.3 111.3 119.9
Inventories and work in progress 413.7 424.1 336.7
Receivables 443.4 432.1 607.8
Cash and cash equivalents 96.9 216.7 142.5
-----------------------------------------------------------------------
Total assets 2 1,740.3 1,853.9 1,870.3
-----------------------------------------------------------------------
Shareholders' equity and liabilities
--------------------------------------------------------------------
Shareholders' equity 694.4 702.1 731.8
Long-term interest-bearing liabilities 373.1 414.6 378.2
Other long-term liabilities 69.1 63.2 79.8
Current interest-bearing liabilities 177.5 259.1 198.6
Other current liabilities 389.8 385.0 435.1
Provisions 36.4 29.9 46.8
--------------------------------------------------------------------
Total shareholders' equity and liabilities 1,740.3 1,853.9 1,870.3
--------------------------------------------------------------------
Equity ratio, % 39.9 37.9 39.1
Gearing, % 65 65 59
EUR 1.00 = USD 1.3080 1.2590 1.3194
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Fair Inves-
Fund Trans- value ted
Pre- for lation and Re- unrest- Retai-
Share mi- own diffe- other mea- ricted ned
capi- um sha- renc- reser- sure- equity Hybrid ear- To-
Note tal fund res es ves ments reserve bond nings tal
--------------------------------------------------------------------------------
Pub-
lished
balan-
ce at
Jan. 1,
2012 292.2 12.1 -36.9 -26.6 7.2 151.5 60.0 367.3 826.8
IAS 19
impact -20.5 -20.5
Re-
stated
balan-
ce at
Jan. 1,
2012 292.2 12.1 -36.9 -26.6 7.2 -20.5 151.5 60.0 367.3 806.3
Other
comp-
rehen-
sive
income:
Trans-
lation
diffe-
rences 8.7 8.7
Re-
measu-
rement
effects
of post-
emp-
loyment
benefit
plans -5.3 -5.3
Cash
flow
hedges -4.0 -4.0
Income
tax
related
to
OCI 1.0 1.8 2.8
Net
result,
restated -3.5 -3.5
Total
comp-
rehen-
sive
income,
restated 8.7 -3.0 -3.5 -3.5 -1.3
Trans-
actions
with
owners:
Cancel-
lation of
own
shares 27.2 -27.2 -
Share-
based
incen-
tive
prog-
rams 2.7 2.9 -2.4 3.2
Hybrid
bond 3 -60.0 -7.2 -67.2
Divi-
dend
distri-
bution 4 -38.9 -38.9
--------------------------------------------------------------------------------
Balan-
ce at
June
30,
2012 292.2 12.1 -7.0 -17.9 4.2 -24.0 154.4 - 288.1 702.1
Pub-
lished
balance
at Jan.
1, 2013 292.2 12.1 -7.1 -35.3 -7.1 - 154.4 - 349.7 758.9
IAS 19
impact -27.5 0.4 -27.1
Re-
stated
balan-
ce at
Jan. 1,
2013 292.2 12.1 -7.1 -35.3 -7.1 -27.5 154.4 - 350.1 731.8
Other
comp-
rehen-
sive
income:
Trans-
lation
diffe-
rences -3.6 -3.6
Cash
flow
hedges 9.6 9.6
Income
tax
related
to
OCI -2.4 -3.0 -5.4
Re-
measu-
rement
effects
of post-
emp-
loyment
benefit
plans 8.6 8.6
Net
result -3.2 -3.2
Total
comp-
rehen-
sive
income -3.6 7.2 5.6 -3.2 6.0
Re-
purc-
hased
own
shares -5.1 -5.1
Trans-
actions
with
owners:
Share-
based
incen-
tive
prog-
rams 1.7 2.3 -1.0 3.0
Divi-
dend
distri-
bution 4 -41.3 -41.3
--------------------------------------------------------------------------------
Balan-
ce at
June
30,
2013 292.2 12.1 -10.5 -38.9 0.1 -21.9 156.7 - 304.6 694.4
Total
Non- share-
controlling holders'
Note interests equity
-------------------------------------------
Published balance
at Jan. 1, 2012 2.6 829.4
IAS 19 impact -20.5
Restated balance
at Jan. 1, 2012 2.6 808.9
Other
comprehensive
income:
Translation
differences 8.7
Remeasurement
effects of
postemployment
benefit plans -5.3
Cash flow hedges -4.0
Income tax
related to OCI 2.8
Net result,
restated -3.5
Total
comprehensive
income, restated -1.3
Transactions
with owners:
Share-based
incentive
programs 3.2
Hybrid bond 3 -67.2
Dividend
distribution 4 -38.9
Other change -2.6 -2.6
------------------------------------
Balance at
June 30, 2012 - 702.1
QUARTERLY BREAKDOWN OF NET SALES AND EBIT
Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/
NET SALES 2013 2013 2012 2012 2012 2012 2011 2011
------------------------------------------------------------------
Winter and Outdoor 168.7 266.5 402.8 411.0 150.9 256.5 375.0 395.7
Ball Sports 144.2 164.0 127.7 121.9 146.5 173.6 109.0 106.7
Fitness 64.3 62.5 88.0 69.0 56.4 59.7 72.9 56.8
------------------------------------------------------------------
Total 377.2 493.0 618.5 601.9 353.8 489.8 556.9 559.2
------------------------------------------------------------------
Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/
EBIT 2013 2013 2012 2012 2012 2012 2011 2011
------------------------------------------------------------------
Winter and Outdoor -27.1 14.2 23.3 86.8 -25.4 10.7 45.0 79.3
Ball Sports 7.8 17.4 -4.5 -2.6 9.7 19.9 -0.7 -1.1
Fitness 4.3 -0.4 7.8 4.2 1.0 3.9 4.5 2.8
Headquarters -3.7 -4.8 -4.4 -7.1 -4.5 -4.9 -2.5 -6.6
------------------------------------------------------------------
Total -18.7 26.4 22.2 81.3 -19.2 29.6 46.3 74.4
------------------------------------------------------------------
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, 2013, as adopted by the EU. The IFRS
recognition and measurement principles as described in the annual financial
statements for 2012 have also been applied in the preparation of the interim
financial information, with the changes mentioned below.
Standards, interpretations and amendments adopted from the beginning of 2013:
The following new standards, interpretations and amendments have been adopted
when applicable: IAS 19 (amendment), IAS 34 (amendment) in connection with IFRS
7 (amendment) and IFRS 13 (amendment), IAS 1 (amendment), IFRS 12 (amendment),
IAS 32 (amendment) and the annual improvements. The impacts of the amendments to
IAS 19 and IAS 34 have been described in the notes 8 and 9. The other amendments
did not have any material impact on the consolidated financial statements.
The relative proportion of the estimated tax charge for the full financial year
has been charged against the result for the period.
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
---------------------------------------------------------------------
1-6/2013
Winter and Outdoor 435.2 -12.9 803.8
Ball Sports 308.2 25.2 402.6
Fitness 126.8 3.9 246.7
---------------------------------------------------------------------
Segments, total 870.2 16.2 1,453.1
---------------------------------------------------------------------
Unallocated items*) -8.5 -12.0 287.2
---------------------------------------------------------------------
Group total 870.2 7.7 -12.0 -4.3 1,740.3
---------------------------------------------------------------------
1-6/2012
Winter and Outdoor 407.4 -14.7 815.0
Ball Sports 320.1 29.6 403.1
Fitness 116.1 4.9 242.0
----------------------------------------------------
Segments, total 843.6 19.8 1,460.1
----------------------------------------------------
Unallocated items*) -9.4 -15.0 393.8
----------------------------------------------------
Group total 843.6 10.4 -15.0 -4.6 1,853.9
----------------------------------------------------
1-12/2012
Winter and Outdoor 1,221.2 95.4 935.4
Ball Sports 569.7 22.5 376.9
Fitness 273.1 16.9 259.4
----------------------------------------------------
Segments, total 2,064.0 134.8 1,571.7
----------------------------------------------------
Unallocated items*) -20.9 -31.5 298.6
----------------------------------------------------
Group total 2,064.0 113.9 -31.5 82.4 1,870.3
----------------------------------------------------
*) Earnings before interest and taxes include income and expenses of corporate
headquarters.
GEOGRAPHIC BREAKDOWN OF NET SALES
1-6/ 1-6/
2013 2012 2012
--------------------------------
EMEA 385.0 359.8 962.7
Americas 372.9 373.1 834.1
Asia Pacific 112.3 110.7 267.2
--------------------------------
Total 870.2 843.6 2,064.0
--------------------------------
3. HYBRID BOND
On March 12, 2012 Amer Sports redeemed the EUR 60 million hybrid bond issued on
March 12, 2009.
4. DIVIDENDS
Relating to the year ending on December 31, 2012, the dividends distributed to
the shareholders of Amer Sports Corporation were EUR 0.35 per share and amounted
in total to EUR 41.3 million (2012: 0.33 per share, in total 38.9 million). The
dividends were paid out in April 2013.
5. CONTINGENT LIABILITIES AND SECURED ASSETS
June June December
30, 2013 30, 2012 31, 2012
------------------------------------------------------------------------
Guarantees 23.8 21.7 23.1
Liabilities for leasing and rental agreements 159.3 128.2 152.4
Other liabilities 40.1 37.5 43.6
There are no guarantees or contingencies given for the management of the
company, the shareholders or the associated companies.
6. 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.
7. 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.
8. Derivative financial instruments and available-for-sale financial assets
measured at fair value
The fair values of financial assets and liabilities whose fair value is
recognized through income statement and derivative financial instruments used in
hedge accounting are presented in the following table. All derivatives are
classified as Level 2 instruments whose fair value is determined by using
valuation techniques from observable market data. Available-for-sale financial
assets are classified as Level 3 instruments and valued by using valuation
techniques without any observable market data.
The company's derivative financial instruments may include foreign exchange
forward contracts and options, interest rate swaps and interest rate options and
cross-currency swaps. Foreign exchange forward contracts and options are used to
hedge against changes in the value of receivables, liabilities and future cash
flows denominated in a foreign currency and interest rate swaps and interest
rate options to hedge against the interest rate risk. Cross-currency swaps are
used to hedge against changes in value of foreign currency denominated
receivables and liabilities and against the interest rate risk.
Derivative financial instruments are initially and subsequently recognized at
fair value. Fair values of foreign currency denominated derivatives are measured
by recognizing the exchange rate difference by using the closing rates quoted by
the European Central Bank on the reporting date. The future cash flows related
to forward contract's interest rate differential are discounted with the
relevant market interest rate yield curves on the reporting date and compared
with initial interest rate differential. The time value of foreign exchange
options is measured using commonly known option pricing models. The expected
future cash flows of the interest rate swaps and cross currency swaps are
discounted with the market interest yield curves of the currencies concerned.
Interest rate options are valued by using commonly known option pricing models.
The accrued interest of forward contracts, interest rate swaps and cross
currency swaps are periodized over the duration of the instruments on a net
basis.
The counterparty risk of the company hasn't materially changed and hence has no
material effect on the valuation of the company's derivative instruments.
Available-for-sale financial assets are Level 3 instruments whose exact fair
values can't be reliably measured. The fair values of available-for-sale assets
are presented at bookkeeping value or a lower value if they are impaired. The
fair values do not materially deviate from the bookkeeping value.
Financial assets/ Derivative
liabilities at fair financial
value through instruments Available-for-
income used in hedge sale financial
June 30, 2013 statement accounting assets
--------------------------------------------------------------------------------
Non-current
financial assets
Other non-current
financial assets 0.6
Foreign exchange
derivatives 0.6
Interest rate derivatives and
cross currency swaps 1.7 0.0
Current financial assets
Foreign exchange
derivatives 7.2 5.9
Long-term financial liabilities
Foreign exchange
derivatives 0.0
Interest rate derivatives and
cross currency swaps 3.6
Current financial liabilities
Foreign exchange
derivatives 7.7 2.5
Interest rate derivatives and
cross currency swaps 0.3 0.1
Nominal value of foreign
exchange derivatives 357.8 436.3
Nominal value of interest rate
derivatives 90.0 150.0
Nominal value of cross
currency swaps 68.7
Financial assets/ Derivative
liabilities at fair financial
value through instruments Available-for-
income used in hedge sale financial
June 30, 2012 statement accounting assets
--------------------------------------------------------------------------------
Non-current
financial assets
Other non-current
financial assets 0.6
Foreign exchange
derivatives 0.0
Interest rate derivatives and
cross currency swaps 1.6
Current financial assets
Foreign exchange
derivatives 0.3 17.5
Long-term financial liabilities
Foreign exchange
derivatives 0.1
Interest rate derivatives and
cross currency swaps 4.5
Current financial liabilities
Foreign exchange
derivatives 4.9 6.2
Interest rate derivatives and
cross currency swaps 0.8
Nominal value of foreign
exchange derivatives 382.1 419.9
Nominal value of interest rate
derivatives 100.0
Nominal value of cross
currency swaps 57.0
Financial assets/ Derivative
liabilities at fair financial
value through instruments Available-for-
income used in hedge sale financial
Dec 31, 2012 statement accounting assets
--------------------------------------------------------------------------------
Non-current
financial assets
Other non-current
financial assets 0.6
Foreign exchange
derivatives 0.0
Interest rate derivatives and
cross currency swaps 2.9
Current financial assets
Foreign exchange
derivatives 9.8 3.9
Long-term financial liabilities
Foreign exchange
derivatives 0.4
Interest rate derivatives and
cross currency swaps 7.3
Current financial liabilities
Foreign exchange
derivatives 0.7 5.8
Interest rate derivatives and
cross currency swaps 0.4
Nominal value of foreign
exchange derivatives 399.4 423.7
Nominal value of interest rate
derivatives 40.0 100.0
Nominal value of cross
currency swaps 69.9
9. AMENDMENTS TO IAS 19 STANDARD
Amer Sports has adopted amendments to IAS 19 standard (Employee Benefits) as of
Jan 1, 2013.
Key changes in the standard for Amer Sports' defined benefit postemployment
plans are as follows:
1. Remeasurements
All actuarial gains and losses ("remeasurements") are recognized in full in
other comprehensive income. The "corridor" method and the option to recognize
immediately in the profit and loss statement is no longer available. This is
expected to increase balance sheet volatility.
2. New measurement of net interest expense
Net interest expense is determined based on the net defined benefit asset
(liability) and the discount rate at the beginning of the year. This is expected
to increase overall expense compared to previous accounting which required that
the interest expense on obligation and the expected return on plan assets were
recognized separately.
3. Past service cost
All past service cost are now recognized immediately in the profit and loss
statement.
4. Reporting in profit and loss statement
Under old IAS 19 all expenses related to defined benefit postemployment plans
were reported above EBIT. As of January 1, 2013 they are reported as follows:
- service cost: above EBIT
- net interest expense: in financing expenses
- remeasurement components: under other comprehensive income
Adaption of revised IAS 19 standard increased Amer Sports' pension liability by
EUR 40.6 million and decreased shareholders' equity by EUR 27.1 million as at
Dec 31, 2012.
4-6/2012, 1-6/2012 and full year 2012 restated key financial statements:
CONSOLIDATED RESULTS
Re- Pub- Re- Pub-
stated lished stated lished Re- IAS Pub-
4-6/ IAS 19 4-6/ 1-6/ IAS 19 1-6/ stated 19 lished
2012 impact 2012 2012 impact 2012 2012 impact 2012
--------------------------------------------------------------------------------
NET SALES 353.8 353.8 843.6 843.6 2,064.0 2,064.0
Cost of
goods sold -201.3 -201.3 -474.8 -474.8 -1,163.4 -1,163.4
--------------------------------------------------------------------------------
GROSS
PROFIT 152.5 152.5 368.8 368.8 900.6 900.6
License
income 1.9 1.9 3.9 3.9 7.5 7.5
Other
operating
income 2.6 2.6 3.1 3.1 6.0 6.0
R&D
expenses -16.8 -16.8 -33.8 -33.8 -72.2 -72.2
Selling and
marketing
expenses -117.8 0.2 -118.0 -250.0 0.6 -250.6 -526.8 1.0 -527.8
Administ-
rative
and other
expenses -41.6 0.4 -42.0 -81.6 0.6 -82.2 -176.4 1.2 -177.6
Non-recurring
expenses - - - - -24.8 -24.8
--------------------------------------------------------------------------------
EARNINGS
BEFORE
INTEREST
AND TAXES -19.2 0.6 -19.8 10.4 1.2 9.2 113.9 2.2 111.7
--------------------------------------------------------------------------------
% of net
sales -5.4 -5.6 1.2 1.1 5.5 5.4
Financing
income and
expenses -9.6 -0.4 -9.2 -15.0 -0.8 -14.2 -31.5 -1.6 -29.9
--------------------------------------------------------------------------------
EARNINGS
BEFORE
TAXES -28.8 0.2 -29.0 -4.6 0.4 -5.0 82.4 0.6 81.8
Taxes 6.5 -0.1 6.6 1.1 -0.2 1.3 -24.5 -0.2 -24.3
--------------------------------------------------------------------------------
NET RESULT -22.3 0.1 -22.4 -3.5 0.2 -3.7 57.9 0.4 57.5
--------------------------------------------------------------------------------
Attributable to:
Equity
holders
of the parent
company -22.3 0.1 -22.4 -3.5 0.2 -3.7 57.9 0.4 57.5
Earnings per
share, EUR -0.19 0.0 -0.19 -0.04 0.0 -0.04 0.48 0.0 0.48
Earnings per
share,
diluted,
EUR -0.19 0.0 -0.19 -0.04 0.0 -0.04 0.48 0.0 0.48
Equity per
share, EUR 5.96 -0.20 6.16 6.21 -0.22 6.43
ROCE, % *) 12.4 0.4 12.0 10.5 0.5 10.0
ROE, % -0.8 0.2 -1.0 7.4 0.2 7.2
*) 12 months' rolling average
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Re- Pub- Re- Pub-
stated lished stated lished Re- Pub-
4-6/ IAS 19 4-6/ 1-6/ IAS 19 1-6/ stated IAS 19 lished
2012 impact 2012 2012 impact 2012 2012 impact 2012
--------------------------------------------------------------------------------
Net result -22.3 0.1 -22.4 -3.5 0.2 -3.7 57.9 0.4 57.5
Other
comprehen-
sive income
Items that will
not be
reclassified to
profit or loss
Remeasu-
rement
effects of
postemp-
loyment
benefit
plans -2.6 -2.6 -5.3 -5.3 -10.5 -10.5
Income tax
related to
remeasu-
rement
effects 0.9 0.9 1.8 1.8 3.5 3.5
Items that
may be
reclassified to
profit or loss
Translation
differences 21.0 -0.1 21.1 8.7 8.7 -8.7 -8.7
Cash flow
hedges 4.8 4.8 -4.0 -4.0 -19.3 -19.3
Income tax
related to
cash flow
hedges -1.3 -1.3 1.0 1.0 5.0 5.0
--------------------------------------------------------------------------------
Other
comprehen-
sive income,
net of tax 22.8 -1.8 24.6 2.2 -3.5 5.7 -30.0 -7.0 -23.0
--------------------------------------------------------------------------------
Total
comprehen-
sive income 0.5 -1.7 2.2 -1.3 -3.3 2.0 27.9 -6.6 34.5
Total
comprehen-
sive income
attributable
to:
Equity holders
of the parent
company 0.5 -1.7 2.2 -1.3 -3.3 2.0 27.9 -6.6 34.5
CONSOLIDATED BALANCE SHEET
Restated Published Restated Published
June 30, IAS 19 June 30, Dec 31, IAS 19 Dec 31,
2012 impact 2012 2012 impact 2012
--------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------
Goodwill 298.1 298.1 289.1 289.1
Other intangible non-
current assets 213.1 213.1 211.4 211.4
Tangible non-current
assets 158.5 158.5 162.9 162.9
Other non-current assets 111.3 11.9 99.4 119.9 13.5 106.4
Inventories and work in
progress 424.1 424.1 336.7 336.7
Receivables 432.1 -5.2 437.3 607.8 -5.7 613.5
Cash and cash equivalents 216.7 216.7 142.5 142.5
--------------------------------------------------------------------------------
Total assets 1,853.9 6.7 1,847.2 1,870.3 7.8 1,862.5
--------------------------------------------------------------------------------
Shareholders' equity and
liabilities
--------------------------------------------------------------------------------
Shareholders' equity 702.1 -23.8 725.9 731.8 -27.1 758.9
Long-term interest-bearing
liabilities 414.6 414.6 378.2 378.2
Other long-term
liabilities 63.2 40.2 23.0 79.8 45.4 34.4
Current interest-bearing
liabilities 259.1 259.1 198.6 198.6
Other current liabilities 385.0 -9.7 394.7 435.1 -10.5 445.6
Provisions 29.9 29.9 46.8 46.8
--------------------------------------------------------------------------------
Total shareholders' equity
and
liabilities 1,853.9 6.7 1,847.2 1,870.3 7.8 1,862.5
--------------------------------------------------------------------------------
Equity ratio, % 37.9 39.3 39.1 -1.6 40.7
Gearing, % 65 63 59 2 57
CONSOLIDATED CASH FLOW STATEMENT
Re- Pub- Re- Pub-
stated lished stated lished Re- Pub- 4-6/ IAS 19 4-6/ 1-6/ IAS 19 1-6/ stated IAS 19 lished
2012 impact 2012 2012 impact 2012 2012 impact 2012
--------------------------------------------------------------------------------
Earnings
before
interest
and taxes -19.3 0.5 -19.8 10.3 1.1 9.2 113.9 2.2 111.7
Adjustments
to cash flow
from operating
activities and
depreciation 10.3 -0.5 10.8 15.2 -1.1 16.3 61.1 -2.2 63.3
Change in
working
capital -7.0 -7.0 82.4 82.4 -10.9 -10.9
--------------------------------------------------------------------------------
Cash flow
from operating
activities
before
financing
items and
taxes -16.0 -16.0 107.9 107.9 164.1 164.1
Net cash flow
from operating
activities -33.5 -33.5 77.1 77.1 112.6 112.6
Net cash flow
from investing
activities -10.7 -10.7 -23.9 -23.9 -40.8 -40.8
Net cash flow
after investing
activities
(free cash
flow) -44.2 -44.2 53.2 53.2 71.8 71.8
Net cash flow
from financing
activities 68.2 68.2 84.4 84.4 -7.2 -7.2
Cash and
cash
equivalents on
April 1/
January 1 191.6 191.6 78.8 78.8 78.8 78.8
Translation
differences 1.1 1.1 0.3 0.3 -0.9 -0.9
Change in
cash and cash
equivalents 24.0 24.0 137.6 137.6 64.6 64.6
--------------------------------------------------------------------------------
Cash and
cash
equivalents on
June 30/
December 31 216.7 216.7 216.7 216.7 142.5 142.5
Remeasurement of pension liability as at June 30, 2013
Amer Sports remeasures its pension liability on quarterly basis. This is done by
utilizing sensitivity analysis provided by actuaries. Each quarter company
evaluates market etc. changes of key calculation components such as discount or
inflation rate to asses new liability. Material changes in liability are
recognized in other comprehensive income.
10. ACQUIRED OPERATIONS
Amer Sports terminated the business with its previous Israeli distributor
Unisport Fitness Equipment (1977) Ltd ("Unisport") and acquired agreed assets
and liabilities of the company on June 28, 2013. Acquired assets totaled to EUR
7.7 million, out of which EUR 4.2 million were related to intangible assets
(customer list, order book). No monetary consideration is paid to owner of
Unisport.
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#1718765]
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