Amer Sports - Interim report (Q1 and Q3)

Amer Sports Corporation Interim Report January-September 2017

Amer Sports Corporation
INTERIM REPORT
October 26, 2017 at 1:00 p.m.

Amer Sports Corporation Interim Report January-September 2017

JULY-SEPTEMBER 2017
  * Net sales EUR 733.2 million (July-September 2016: 736.8). In local
    currencies, net sales increased by 3%. Growth was solid in EMEA and China,
    whilst the US market continued to be challenging.
  * Gross margin 46.7% (48.0).
  * EBIT excluding items affecting comparability (IAC) EUR 109.0 million
    (106.5). Items affecting comparability were EUR -34.3 million (-2.4), mostly
    related to the ongoing restructuring announced in February 2017.
  * Earnings per share excl. IAC EUR 0.65 (0.62).
  * Free cash flow EUR -55.8 million (-66.9).
  * Outlook for 2017 unchanged.

JANUARY-SEPTEMBER 2017
  * Net sales EUR 1,882.1 million (January-September 2016: 1,849.7). In local
    currencies, net sales increased by 2%.
  * Gross margin 45.6% (46.9).
  * EBIT excluding IAC EUR 122.4 million (140.4). Items affecting comparability
    were EUR -40.0 million (-8.7).
  * Earnings per share excl. IAC EUR 0.65 (0.73).
  * Free cash flow EUR 5.1 million (-88.4).

OUTLOOK
In 2017, Amer Sports' net sales in local currencies are expected to increase
from 2016, despite short-term market softness. EBIT excl. IAC is expected to be
approximately at the level of 2016.

The growth in 2017 is expected to be biased to the second half of the year. EBIT
excl. IAC includes further accelerated investment into the company's
transformation toward omni-channel and digital to win in the fast changing
market place. The company will continue to focus on growing the core business
and the five prioritized areas: Apparel and Footwear, US, China, Business to
Consumer, as well as digitally connected devices and services.


KEY FIGURES
 EUR million                       7-9/2017 7-9/2016 1-9/2017 1-9/2016    2016
------------------------------------------------------------------------------
 Net sales                            733.2    736.8  1,882.1  1,849.7 2,622.1

 Gross profit                         342.1    353.3    858.5    868.4 1,213.5

   Gross profit %                      46.7     48.0     45.6     46.9    46.3

 EBITDA excl. IAC*)                   124.7    122.3    175.1    185.1   281.7

 EBIT excl. IAC                       109.0    106.5    122.4    140.4   221.7

 EBIT % excl. IAC                      14.9     14.5      6.5      7.6     8.5

 IAC**)                               -34.3     -2.4    -40.0     -8.7   -16.9

 EBIT                                  74.7    104.1     82.4    131.7   204.8

 EBIT %                                10.2     14.1      4.4      7.1     7.8

 Financing income and expenses         -6.2     -8.0    -20.0    -23.9   -31.8

 Earnings before taxes                 68.5     96.1     62.4    107.8   173.0

 Net result                            50.6     70.5     46.1     79.0   126.9

 Earnings per share excl. IAC, EUR     0.65     0.62     0.65     0.73    1.18

 Free cash flow***)                   -55.8    -66.9      5.1    -88.4    64.4

 Equity ratio, % at period end                           34.7     35.3    36.9

 Net debt/equity at period end                           0.70     0.73    0.53

 Personnel at period end                                8,611    8,554   8,526

 Average rates used, EUR/USD           1.17     1.12     1.11     1.12    1.11

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


HEIKKI TAKALA, PRESIDENT AND CEO:

In the third quarter we returned to profitable growth, as expected. Growth was
broad-based, and in line with our strategy, driven again by Apparel, own retail,
e-commerce and China. Encouragingly, we continued to gain speed in Fitness, and
we laid foundation for a rebound in Sports Instruments as we rolled out the
complete Spartan product family. We made again significant progress in the
company omni-channel transformation to win in the changing market place. We
executed the announced restructuring, and we are already delivering significant
cost efficiencies, ahead of schedule. Furthermore, we continued to drive cash
flow improvement ahead of our target.

In August, we announced our new 2020 financial targets, focus on profitable
growth, now with special emphasis given to profitability. We continue to
capitalize on our proven growth drivers, most notably softgoods, Direct to
Consumer, and China, and we are transforming the company at maximum speed to
stay ahead of the game as the market place and the consumer habits are evolving
rapidly. In a challenging market, we are making strong progress in executing the
strategy, capitalizing on all levers of our value creation model.


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

TELEPHONE CONFERENCE
A conference call for investors and analysts will be held at 3:00 p.m. Finnish
time. To participate, please call +44 (0)20 7572 1187 or +49 (0)69 2222 4998,
PIN 84406153#. The conference can also be followed live via
https://amersports.videosync.fi/interimreport-q3-2017/register. A replay of the
conference call and a transcript will be available later at the same internet
address. The replay numbers are +44 (0)20 7075 6589, +49 (0)69 2222 33985 and
+358 (0)800 914 837, conference number 681844#.

FINANCIAL STATEMENTS BULLETIN 2017
Amer Sports will publish its financial statements bulletin 2017 on Thursday,
February 8, 2018 at approximately 1:00 p.m. Finnish time.

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

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




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Attachments:

Amer Sports Interim Report Q3 2017.pdf