Investment case

 

Amer Sports is one of the leading sporting goods and outdoor companies in the world. The company has a strong brand portfolio and is positioned to benefit from long-term trends.

Amer Sports strategy is based on five strategic cornerstones, which will enable the company to achieve its ambitions and long-term financial targets.

New financial targets and a new accelerated glidepath toward 2020

In August 2015, Amer Sports announced new financial targets and a new accelerated glidepath toward 2020 with focus on accelerating profitable growth.

Amer Sports’ financial targets toward 2020 are:

  • Net sales: At least EUR 3.5 billion with minimum mid-single digit organic, currency-neutral annual growth
  • Profit: Annual EBIT growth (excl. items affecting comparability) ahead of net sales growth
  • Cash flow conversion: Free cash flow / net profit at least 80%
  • Net debt / EBITDA: Year-end net debt / EBITDA ratio max 3x

The accelerated glidepath consists of growing the core business and accelerating disproportionally in five prioritized areas: Apparel and Footwear, US, China, Business to Consumer (own retail and e-commerce), as well as digitally connected devices and services.

In September 2016, Amer Sports Amer Sports confirmed that it is on the glidepath to deliver the 2020 financial targets. The financial targets and acceleration priorities are unchanged, but now supported by further organic acceleration building blocks.

Five acceleration areas:

acceleration-areas-notitle-700pix

Amer Sports President and CEO Heikki Takala, August 2015:
“During our 2010-2015 strategic glidepath we returned the company to profitable growth, building our sales from EUR 1.5 billion to approximately EUR 2.5 billion. We have proven our Sustainable Growth Model, and we have now a new accelerated glidepath for the next five years prioritizing five growth areas where we see the highest growth potential and where we have built a repeatable business model. We look forward to taking the company to the next level.”

Amer Sports President and CEO Heikki Takala, August 2016:
“We have made significant progress especially in the acceleration areas chosen in 2015 and we now have even additional building blocks, sufficient to reach EUR 3.5 billion sales by 2020 organically. This organic acceleration drives significant further value creation for the company. As always, we continue to drive productivity improvement, and we use restructuring as a further measure to shift funds to enable the acceleration. Acquisitions will remain in the toolbox, as our ambition is to grow toward EUR 4 billion in net sales in the next 5+ years.”

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