INTERIM REPORT
August 2, 2012 at 1:00 pm
APRIL-JUNE 2012
- Net sales totaled EUR 353.8 million (April-June 2011: EUR 315.6 million). In local currencies, net sales increased by 5% driven by double-digit growth in Apparel, Fitness and Sports Instruments and high growth rates in China, Russia and own retail.
- Gross margin improved to 43.1% (42.3%).
- EBIT was EUR -19.8 million (-10.9). Investments into the expansion of softgoods, sales coverage, emerging markets and own retail burdened the seasonally low quarter.
- Earnings per share were EUR -0.19 (-0.12).
- Net cash flow after investing activities improved EUR 22.9 million and was EUR -44.2 million (-67.1).
- Amer Sports’ net sales outlook for 2012 is unchanged. In 2012, Amer Sports’ net sales in local currencies are expected to increase from 2011 in line with the company’s annual 5% growth target. Amer Sports 2012 EBIT excluding non-recurring items is expected to be approximately at the level of 2011 despite the uncertainty in the winter sports market and the ongoing investments into the future growth.
JANUARY-JUNE 2012
- Net sales were EUR 843.6 million (January-June 2011: EUR 764.7 million). In local currencies, net sales increased by 6%.
- Gross margin rose to 43.7% (42.9%).
- EBIT was EUR 9.2 million (14.8).
- Earnings per share were EUR -0.04 (0.01).
- Net cash flow after investing activities was EUR 53.2 million (20.0).
- Gearing was 63% (December 31, 2011: 47%). The increase was due to the redemption of the hybrid bond in March.
OUTLOOK FOR 2012
In 2012, Amer Sports’ net sales in local currencies are expected to increase from 2011 in line with the company’s annual 5% growth target.
For the full year, Apparel net sales growth is estimated to be over 20%. In Footwear, sales growth is estimated to be approximately 5% due to retailers’ inventory reduction. In Apparel and Footwear, the company no longer provides semi-annual pre-order figures as Amer Sports considers that these are not a reliable indicator of the future growth. In Winter Sports Equipment, Amer Sports has gained market shares and strengthened its market position but pre-orders for the season 2012/13 are down by 13% due to the late and mild winter in the previous season.
Amer Sports is continuously driving synergies and scale and continues to invest into future growth with focus on softgoods, sales coverage, emerging markets, and own retail. These investments support Amer Sports’ sales and gross margin improvement but require up-front operational expenses. Amer Sports 2012 EBIT excluding non-recurring items is expected to be approximately at the level of 2011 despite the uncertainty in the winter sports market and the ongoing investments into the future growth.
KEY FIGURES
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Ch % |
Ch %*) |
1-6/ 2012 |
1-6/ 2011 |
Ch % |
Ch %*) |
2011 |
| Net sales | 353.8 | 315.6 | 12 | 5 | 843.6 | 764.7 | 10 | 6 | 1,880.8 |
| Gross profit | 152.5 | 133.5 | 14 | 7 | 368.8 | 328.1 | 12 | 8 | 817.4 |
| Gross profit % | 43.1 | 42.3 | 43.7 | 42.9 | 43.5 | ||||
| EBIT | -19.8 | -10.9 | 9.2 | 14.8 | -38 | -47 | 135.5 | ||
| EBIT % | -5.6 | -3.5 | 1.1 | 1.9 | 7.2 | ||||
| Financing income and expenses | -9.2 | -4.8 | -14.2 | -9.1 | -20.5 | ||||
| Earnings before taxes | -29.0 | -15.7 | -5.0 | 5.7 | 115.0 | ||||
| Net result | -22.4 | -12.6 | -3.7 | 4.5 | 90.9 | ||||
| Earnings per share, EUR | -0.19 | -0.12 | -0.04 | 0.01 | 0.71 | ||||
| Net cash flow after investing activities | -44.2 | -67.1 | 53.2 | 20.0 | -21.4 | ||||
| Equity ratio, % at period end | 39.3 | 47.8 | 45.6 | ||||||
| Gearing, % at period end | 63 | 45 | 47 | ||||||
| Personnel at period end | 7,226 | 6,985 | 3 | 7,061 | |||||
| Average rates used, EUR/USD | 1.29 | 1.44 | 1.30 | 1.40 | 1.39 |
*) Change in local currencies
HEIKKI TAKALA, PRESIDENT AND CEO:
“We achieved solid growth in the second quarter, despite deterioration in trading conditions especially in Europe where several major retailers are reducing inventories and pre-orders. We continued to improve our gross margins and to drive cash flow through working capital reduction.
We have continued to significantly invest into our strategic growth areas whilst driving base business cost efficiencies which we will further pursue. As examples of the strategic investments in past 12 months, we have opened some 20 new own retail stores and 20 new e-commerce stores. We have put in place entirely new category market organizations in Russia, China and Brazil. We have significantly increased our product initiative pipeline especially in Salomon, Arc’teryx and Wilson for 2013 and onwards.
Whilst all these investments represent incremental cost and admittedly burden especially the seasonally low second quarter results, they have a positive sales and gross margin contribution already in the current year, enabling us to by-pass our 2 billion euro sales milestone in 2012. Importantly, these investments complete most of our capability needs by the end of 2012 and they contribute to our scale and synergies in the years to come, in line with the company’s strategic glidepath.
We continue to execute our strategy with confidence 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 3:00 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 4067203#.
THIRD QUARTER RESULTS BULLETIN
Amer Sports will publish its Q3/2012 results bulletin on Thursday, October 25, 2012 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 30, 2012 in Helsinki, Finland.
INTERIM REPORT
NET SALES AND EBIT APRIL-JUNE 2012
Amer Sports’ net sales in April-June 2012 were EUR 353.8 million (April-June 2011: 315.6). Net sales increased by 5% in local currencies. The fastest growth took place in Apparel, up by 38%, Fitness, up by 11% and Sports Instruments, up by 14% excluding divested businesses. There were also high growth rates in China, Russia and own retail supporting the overall growth.
Net sales by business segment
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Change % |
Change %*) |
% of sales 4-6/2012 |
% of sales 4-6/2011 |
2011 |
| Winter and Outdoor | 150.9 | 133.4 | 13 | 8 | 43 | 42 | 1,137.6 |
| Ball Sports | 146.5 | 136.3 | 7 | -1 | 41 | 43 | 511.0 |
| Fitness | 56.4 | 45.9 | 23 | 11 | 16 | 15 | 232.2 |
| Total | 353.8 | 315.6 | 12 | 5 | 100 | 100 | 1,880.8 |
*) In local currencies
Geographic breakdown of net sales
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Change % |
Change %*) |
% of sales 4-6/2012 |
% of sales 4-6/2011 |
2011 |
| EMEA | 133.1 | 129.7 | 3 | 1 | 38 | 41 | 917.6 |
| Americas | 167.4 | 146.5 | 14 | 3 | 47 | 46 | 742.1 |
| Asia Pacific | 53.3 | 39.4 | 35 | 22 | 15 | 13 | 221.1 |
| Total | 353.8 | 315.6 | 12 | 5 | 100 | 100 | 1,880.8 |
*) In local currencies
Gross margin was 43.1% (42.3). The improvement came especially from Individual Ball Sports.
Group EBIT was EUR -19.8 million (-10.9). Increased sales volumes contributed approximately EUR 7 million to EBIT and higher gross margins approximately EUR 3 million. This was offset by increased operating expenses of approximately EUR 14 million and other income and expenses of approximately EUR -5 million. Operating expenses increased driven by continuous investments into future growth with focus on softgoods, sales coverage, emerging markets, and own retail. These up-front investments support Amer Sports’ sales and gross margin improvement.
EBIT by business segment
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
2011 |
| Winter and Outdoor | -25.4 | -15.1 | 118.5 |
| Ball Sports | 9.7 | 9.1 | 25.0 |
| Fitness | 1.0 | -0.3 | 10.3 |
| Headquarters*) | -5.1 | -4.6 | -18.3 |
| EBIT total | -19.8 | -10.9 | 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 second quarter of 2012, segment operating loss increased by EUR 0.5 million due to increased operational expenses and change in fair valuation of share-based compensations and other adjustments.
Net financial expenses were EUR 9.2 million (4.8) including net interest expenses of EUR 7.6 million (4.8). Net foreign exchange losses were EUR 1.6 million (losses of EUR 0.5 million). Earnings before taxes totaled EUR -29.0 million (-15.7) and taxes were EUR 6.6 million positive (3.1 positive). Earnings per share were EUR -0.19 (-0.12).
NET SALES AND EBIT JANUARY–JUNE 2012
Amer Sports’ net sales in January-June 2012 were EUR 843.6 million (January-June 2011: EUR 764.7 million). Comparable net sales increased by 6% in local currencies, particularly due to sales growth in Apparel, up by 32%, Footwear, up by 8%, Fitness, up by 6% and Sports Instruments, up by 12% excluding divested businesses.
Net sales by business segment
| EUR million | 1-6/ 2012 |
1-6/ 2011 |
Change % |
Change %*) |
% of sales 1-6/2012 |
% of sales 1-6/2011 |
2011 |
| Winter and Outdoor | 407.4 | 366.9 | 11 | 8 | 48 | 48 | 1,137.6 |
| Ball Sports | 320.1 | 295.3 | 8 | 2 | 38 | 39 | 511.0 |
| Fitness | 116.1 | 102.5 | 13 | 6 | 14 | 13 | 232.2 |
| Total | 843.6 | 764.7 | 10 | 6 | 100 | 100 | 1,880.8 |
*) In local currencies
Geographic breakdown of net sales
| EUR million | 1-6/ 2012 |
1-6/ 2011 |
Change % |
Change %*) |
% of sales 1-6/2012 |
% of sales 1-6/2011 |
2011 |
| EMEA | 359.8 | 343.8 | 5 | 3 | 43 | 45 | 917.6 |
| Americas | 373.1 | 332.9 | 12 | 5 | 44 | 44 | 742.1 |
| Asia Pacific | 110.7 | 88.0 | 26 | 16 | 13 | 11 | 221.1 |
| Total | 843.6 | 764.7 | 10 | 6 | 100 | 100 | 1,880.8 |
*) In local currencies
Gross margin was 43.7% (42.9) with a broad-based improvement.
Group EBIT was EUR 9.2 million (14.8). In local currencies, increased sales volumes contributed approximately EUR 19 million to EBIT, while higher gross margins contributed approximately EUR 8 million. Operating expenses increased by approximately EUR 32 million, driven by continuous investments into future growth with focus on softgoods, sales coverage, emerging markets, and own retail. Other income and expenses impacted negatively by approximately EUR 3 million on EBIT.
EBIT by business segment
| EUR million | 1-6/ 2012 |
1-6/ 2011 |
2011 |
| Winter and Outdoor | -14.7 | -5.8 | 118.5 |
| Ball Sports | 29.6 | 26.8 | 25.0 |
| Fitness | 4.9 | 3.0 | 10.3 |
| Headquarters*) | -10.6 | -9.2 | -18.3 |
| EBIT total | 9.2 | 14.8 | 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 January-June 2012, segment operating loss increased by EUR 1.4 million due to increased operational expenses and change in fair valuation of share-based compensations and other adjustments.
Net financial expenses totaled EUR 14.2 million (9.1) including net interest expenses of EUR 12.1 million (9.2). Net foreign exchange losses totaled EUR 2.1 million (0.1 gains). Earnings before taxes totaled EUR -5.0 million (5.7) and taxes were EUR 1.3 million positive (1.2 negative). Earnings per share were EUR -0.04 (0.01).
CASH FLOW AND FINANCING
Net cash flow after investing activities (free cash flow) in January-June was EUR 53.2 million (20.0). Working capital in total was reduced by EUR 82.4 million (22.5). Inventories increased by EUR 59.6 million (97.8) and receivables decreased by EUR 210.7 million (176.0).
At the end of June, net debt amounted to EUR 457.0 million (December 31, 2011: 391.6). The increase was due to redemption of a hybrid bond of EUR 60.0 million and its interests of EUR 7.2 million, dividends of EUR 38.9 (36.4) million and foreign exchange derivatives used in hedging. The hybrid bond was issued on March 12, 2009 and redeemed on March 12, 2012.
Interest-bearing liabilities amounted to EUR 673.7 million (December 31, 2011: 470.4) consisting of short-term debt of EUR 259.1 million and long-term debt of EUR 414.6 million. The average interest rate on the Group’s interest-bearing liabilities was 3.3% (December 31, 2011: 3.6).
Short-term debt consists mainly of repayments of long-term loans of EUR 12.4 million (December 31, 2011: 23.4) and commercial papers of EUR 244.9 (194.2). The total size of the commercial paper program is EUR 500 million.
Cash and cash equivalents totaled EUR 216.7 million (December 31, 2011: 78.8). Due to uncertain prospects in the economy and financial market, Amer Sports has increased cash and cash equivalents and reserved funding for high seasonal working capital in the third quarter.
In April 2012, Amer Sports signed a 3-year EUR 20 million term loan with Unicredit Bank Austria AG and in June, a 5-year EUR 40 million committed revolving credit facility with Pohjola Bank. The credit facilities will be used for general corporate purposes.
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 or the EUR 40 million committed revolving credit facility of Pohjola Bank 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. The bonds were listed on the NASDAQ OMX Helsinki Ltd on July 27, 2012. The proceeds of the bonds have been used for repayment of debt and general corporate purposes.
The equity ratio at the end of June was 39.3% (December 31, 2011: 45.6) and gearing was 63% (December 31, 2011: 47).
CAPITAL EXPENDITURE AND INVESTMENTS
The Group’s capital expenditure totaled EUR 21.7 (19.0) million. Depreciation totaled EUR 20.0 million (17.7). The whole year capital expenditure is expected to be approximately EUR 50 million (51.4).
BUSINESS SEGMENT REVIEWS
WINTER AND OUTDOOR
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Ch % |
Ch %*) |
1-6/ 2012 |
1-6/ 2011 |
Ch % |
Ch %*) |
2011 |
| Net sales | |||||||||
| Winter Sports Equipment | 14.4 | 11.1 | 30 | 20 | 58.1 | 58.0 | 0 | -3 | 448.4 |
| Footwear | 56.7 | 54.9 | 3 | 0 | 160.8 | 146.0 | 10 | 8 | 287.7 |
| Apparel | 25.4 | 17.4 | 46 | 38 | 76.6 | 56.3 | 36 | 32 | 191.6 |
| Cycling | 29.6 | 27.9 | 6 | 2 | 65.9 | 62.3 | 6 | 4 | 120.5 |
| Sports Instruments | 24.8 | 22.1 | 12 | 14**) | 46.0 | 44.3 | 4 | 12**) | 89.4 |
| Net sales, total | 150.9 | 133.4 | 13 | 8 | 407.4 | 366.9 | 11 | 8 | 1,137.6 |
| EBIT | -25.4 | -15.1 | -14.7 | -5.8 | 118.5 | ||||
| Personnel at period end | 4,695 | 4,507 | 4 | 4,590 |
*) Change in local currencies
**) Underlying growth excluding the businesses divested in 2011
In April-June, Winter and Outdoor’s net sales were EUR 150.9 million (133.4), an increase of 8% in local currencies. Net sales growth was driven by Apparel.
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Ch % |
Ch %*) |
1-6/ 2012 |
1-6/ 2011 |
Ch % |
Ch %*) |
2011 |
| EMEA | 84.9 | 85.7 | -1 | -2 | 256.3 | 249.2 | 3 | 2 | 751.3 |
| Americas | 38.4 | 29.9 | 28 | 18 | 92.0 | 73.9 | 24 | 18 | 253.4 |
| Asia Pacific | 27.6 | 17.8 | 55 | 40 | 59.1 | 43.8 | 35 | 25 | 132.9 |
| Total | 150.9 | 133.4 | 13 | 8 | 407.4 | 366.9 | 11 | 8 | 1,137.6 |
*) Change in local currencies
In April-June, EBIT was EUR -25.4 million (-15.1). Increased sales volumes contributed approximately EUR 5 million to the EBIT while higher gross margins contributed approximately EUR 2 million. Operating expenses increased by approximately EUR 12 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 14.4 million (11.1), an increase of 20% 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 down by 13%, despite the strengthened market share positions.
Footwear
In April-June, Footwear’s net sales were EUR 56.7 million (54.9), and were at last year’s level in local currencies due to customer de-stocking especially in Europe which represents 75% of Footwear’s annual net sales (2011).
Apparel
In April-June, Apparel’s net sales were EUR 25.4 million (17.4), an increase of 38% in local currencies. Growth occurred in all geographical regions.
Cycling
In April-June, Cycling’s net sales were EUR 29.6 million (27.9), an increase of 2% in local currencies. The growth came mainly from riders’ equipment.
Sports Instruments
In April-June, Sports Instruments’ net sales were EUR 24.8 million (22.1), an increase of 14% in local currencies (underlying growth excluding the businesses divested in 2011). The growth was supported by a GPS watch, Ambit, which was launched during the first quarter of 2012.
BALL SPORTS
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Ch % |
Ch %*) |
1-6/ 2012 |
1-6/ 2011 |
Ch % |
Ch %*) |
2011 |
| Net sales | |||||||||
| Individual Ball Sports | 87.3 | 81.8 | 7 | 0 | 184.9 | 169.5 | 9 | 4 | 283.0 |
| Team Sports | 59.2 | 54.5 | 9 | -2 | 135.2 | 125.8 | 7 | 1 | 228.0 |
| Net sales, total | 146.5 | 136.3 | 7 | -1 | 320.1 | 295.3 | 8 | 2 | 511.0 |
| EBIT | 9.7 | 9.1 | 7 | 29.6 | 26.8 | 10 | 25.0 | ||
| Personnel at period end | 1,611 | 1,686 | -5 | 1,631 |
*) Change in local currencies
In April-June, Ball Sports’ net sales were EUR 146.5 million (136.3), and were at last year’s level in local currencies. Performance tennis rackets were up, while lower price point tennis rackets were flat and balls as well as baseball bats decreased as trade was de-stocking their inventories.
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Ch % |
Ch %*) |
1-6/ 2012 |
1-6/ 2011 |
Ch % |
Ch %*) |
2011 |
| EMEA | 33.7 | 33.0 | 2 | 0 | 75.6 | 72.3 | 5 | 3 | 113.4 |
| Americas | 92.3 | 85.8 | 8 | -3 | 202.6 | 188.2 | 8 | 1 | 331.0 |
| Asia Pacific | 20.5 | 17.5 | 17 | 6 | 41.9 | 34.8 | 20 | 11 | 66.6 |
| Total | 146.5 | 136.3 | 7 | -1 | 320.1 | 295.3 | 8 | 2 | 511.0 |
*) Change in local currencies
In April-June, EBIT was EUR 9.7 million (9.1). The improvement was driven by strong margins for the quarter and favorable currency rates on translation.
Individual Ball Sports
In April-June, Individual Ball Sports’ net sales were EUR 87.3 million (81.8), and were at last year’s level in local currencies. The sales of performance tennis rackets were up by 5% while sales of lower price point tennis rackets were flat and balls decreased by 5%.
Team Sports
In April-June, Team Sports’ net sales were EUR 59.2 million (54.5), a decrease of 2% in local currencies. The decline was driven by the baseball bat product category.
FITNESS
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Ch % |
Ch %*) |
1-6/ 2012 |
1-6/ 2011 |
Ch % |
Ch %*) |
2011 |
| Net sales | 56.4 | 45.9 | 23 | 11 | 116.1 | 102.5 | 13 | 6 | 232.2 |
| EBIT | 1.0 | -0.3 | 4.9 | 3.0 | 63 | 10.3 | |||
| Personnel at period end | 794 | 720 | 10 | 749 |
*) Change in local currencies
In April-June, Fitness’s net sales were EUR 56.4 million (45.9), an increase of 11% in local currencies. Geographically, sales were up especially in EMEA, as a result of investments in sales and distribution.
The commercial business (clubs and institutions) was up by 10% in local currencies. Consumer business (home use) was up by 16%.
| EUR million | 4-6/ 2012 |
4-6/ 2011 |
Ch % |
Ch %*) |
1-6/ 2012 |
1-6/ 2011 |
Ch % |
Ch %*) |
2011 |
| EMEA | 14.5 | 11.0 | 32 | 26 | 27.9 | 22.3 | 25 | 21 | 52.9 |
| Americas | 36.7 | 30.8 | 19 | 6 | 78.5 | 70.8 | 11 | 3 | 157.7 |
| Asia Pacific | 5.2 | 4.1 | 27 | 11 | 9.7 | 9.4 | 3 | -6 | 21.6 |
| Total | 56.4 | 45.9 | 23 | 11 | 116.1 | 102.5 | 13 | 6 | 232.2 |
*) Change in local currencies
In April-June, EBIT was EUR 1.0 million (-0.3). The improvement was due to higher sales volumes.
PERSONNEL
At the end of June, the number of Group employees was 7,226 (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.
| June 30, 2012 |
June 30, 2011 |
Change % |
December 31, 2011 |
|
| Winter and Outdoor | 4,695 | 4,507 | 4 | 4,590 |
| Ball Sports | 1,611 | 1,686 | -5 | 1,631 |
| Fitness | 794 | 720 | 10 | 749 |
| Headquarters and shared services | 126 | 72 | 75 | 91 |
| Total | 7,226 | 6,985 | 3 | 7,061 |
| June 30, 2012 |
June 30, 2011 |
Change % |
December 31, 2011 |
|
| EMEA | 4,269 | 4,204 | 2 | 4,185 |
| Americas | 2,306 | 2,233 | 3 | 2,312 |
| Asia Pacific | 651 | 548 | 19 | 564 |
| Total | 7,226 | 6,985 | 3 | 7,061 |
CHANGES IN GROUP MANAGEMENT
Vincent Wauters, Amer Sports’ SVP Supply Chain and IT, was nominated General Manager for Arc’teryx Inc effective June 13, 2012. Antti Jääskeläinen, Amer Sports’ Chief Development Officer, assumed leadership for the Group Supply Chain and IT on top of his existing responsibilities (Chief Development Officer since 2009). Mr. Wauters reports to Andy Towne, President of Amer Sports’ Apparel, and is no longer a member of the Group Executive Board. Mr. Jääskeläinen continues to report to Heikki Takala, Amer Sports President and CEO, and is a member of the Group Executive Board.
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 60% 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 June 30, 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 a total of 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 June, Amer Sports held a total of 732,096 shares of Amer Sports Corporation. The number of own shares corresponds to 0.62% (0.83) of all Amer Sports shares.
Trading in shares
In January-June, a total of 38.8 million (36.5) Amer Sports shares with a value totaling EUR 381.6 million (373.3) were traded on the NASDAQ OMX Helsinki Ltd in the review period. The average daily volume in January-June 2012 was 313,155 shares (294,548).
The closing price of the Amer Sports Corporation share on the NASDAQ OMX Helsinki Ltd stock exchange on June 30, 2012 was EUR 8.99 (11.46). Shares registered a high of EUR 11.0 (11.97) and a low of EUR 8.39 (8.43) during the review period. The average share price was EUR 9.83 (10.22). On June 30, 2012, the company had a market capitalization of EUR 1,058.9 million (1,381.0), excluding own shares.
Amer Sports Corporation had 15,178 registered shareholders (16,429) at the end of June 2012. Outside Finland, ownership and nominee registrations represented 45.5% (49.8%) of the company’s 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
Documentation and press releases relating to the resolutions approved by the Amer Sports Corporation Annual General Meeting held on March 8, 2012 are available on the company’s website at www.amersports.com/investors.
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 impact on Winter Sports Equipment, 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’ net sales in local currencies are expected to increase from 2011 in line with the company’s annual 5% growth target.
For the full year, Apparel net sales growth is estimated to be over 20%. In Footwear, sales growth is estimated to be approximately 5% due to retailers’ inventory reduction. In Apparel and Footwear, the company no longer provides semi-annual pre-order figures as Amer Sports considers that these are not a reliable indicator of the future growth. In Winter Sports Equipment, Amer Sports has gained market shares and strengthened its market position but pre-orders for the season 2012/13 are down by 13% due to the late and mild winter in the previous season.
Amer Sports is continuously driving synergies and scale and continues to invest into future growth with focus on softgoods, sales coverage, emerging markets, and own retail. These investments support Amer Sports’ sales and gross margin improvement but require up-front operational expenses. Amer Sports 2012 EBIT excluding non-recurring items is expected to be approximately at the level of 2011 despite the uncertainty in the winter sports market and the ongoing investments into the future growth.
Outlook given in the interim report on April 27, 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.
TABLES
The notes are an integral part of consolidated interim financial information.
Unaudited
EUR million
CONSOLIDATED RESULTS
| 4-6/ 2012 |
4-6/ 2011 |
Change % |
1-6/ 2012 |
1-6/ 2011 |
Change % |
2011 | |
| NET SALES | 353.8 | 315.6 | 12 | 843.6 | 764.7 | 10 | 1,880.8 |
| Cost of goods sold | -201.3 | -182.1 | -474.8 | -436.6 | -1,063.4 | ||
| GROSS PROFIT | 152.5 | 133.5 | 14 | 368.8 | 328.1 | 12 | 817.4 |
| License income | 1.9 | 2.1 | 3.9 | 4.4 | 8.7 | ||
| Other operating income | 2.6 | 0.9 | 3.1 | 1.4 | 5.4 | ||
| R&D expenses | -16.8 | -14.0 | -33.8 | -29.2 | -64.2 | ||
| Selling and marketing expenses | -118.0 | -103.1 | -250.6 | -220.1 | -475.9 | ||
| Administrative and other expenses |
-42.0 | -30.3 | -82.2 | -69.8 | -155.9 | ||
| EARNINGS BEFORE INTEREST AND TAXES |
-19.8 | -10.9 | 9.2 | 14.8 | -38 | 135.5 | |
| % of net sales | -5.6 | -3.5 | 1.1 | 1.9 | 7.2 | ||
| Financing income and expenses | -9.2 | -4.8 | -14.2 | -9.1 | -20.5 | ||
| EARNINGS BEFORE TAXES | -29.0 | -15.7 | -5.0 | 5.7 | 115.0 | ||
| Taxes | 6.6 | 3.1 | 1.3 | -1.2 | -24.1 | ||
| NET RESULT | -22.4 | -12.6 | -3.7 | 4.5 | 90.9 | ||
| Attributable to: | |||||||
| Equity holders of the parent company |
-22.4 | -12.6 | -3.7 | 4.5 | 90.8 | ||
| Non-controlling interests | – | 0.0 | – | 0.0 | 0.1 | ||
| Earnings per share, EUR | -0.19 | -0.12 | -0.04 | 0.01 | 0.71 | ||
| Earnings per share, diluted, EUR | -0.19 | -0.12 | -0.04 | 0.01 | 0.71 | ||
| Adjusted average number of shares in issue less own shares, million |
117.7 | 120.8 | 119.9 | ||||
| Adjusted average number of shares in issue less own shares, diluted, million |
118.0 | 120.8 | 120.1 | ||||
| Equity per share, EUR | 6.16 | 5.93 | 7.03 | ||||
| ROCE, % *) | 12.0 | 12.2 | 13.2 | ||||
| ROE, % | -1.0 | 1.2 | 11.2 | ||||
| Average rates used: EUR 1.00 = USD |
1.2851 | 1.4399 | 1.2975 | 1.4030 | 1.3926 |
*) 12 months’ rolling average
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| 4-6/ 2012 |
4-6/ 2011 |
1-6/ 2012 |
1-6/ 2011 |
2011 | ||||
| Net result | -22.4 | -12.6 | -3.7 | 4.5 | 90.9 | |||
| Other comprehensive income | ||||||||
| Translation differences | 21.1 | -8.2 | 8.7 | -26.0 | 7.7 | |||
| Cash flow hedges | 4.8 | -2.5 | -4.0 | -6.7 | 17.3 | |||
| Income tax related to cash flow hedges |
-1.3 | 0.6 | 1.0 | 1.7 | -4.5 | |||
| Other comprehensive income, net of tax |
24.6 | -10.1 | 5.7 | -31.0 | 20.5 | |||
| Total comprehensive income | 2.2 | -22.7 | 2.0 | -26.5 | 111.4 | |||
| Total comprehensive income attributable to: | ||||||||
| Equity holders of the parent company |
2.2 | -22.7 | 2.0 | -26.5 | 111.3 | |||
| Non-controlling interests | – | 0.0 | – | 0.0 | 0.1 | |||
NET SALES BY BUSINESS SEGMENT
| 4-6/ 2012 |
4-6/ 2011 |
Change % |
1-6/ 2012 |
1-6/ 2011 |
Change % |
2011 | ||
| Winter and Outdoor | 150.9 | 133.4 | 13 | 407.4 | 366.9 | 11 | 1,137.6 | |
| Ball Sports | 146.5 | 136.3 | 7 | 320.1 | 295.3 | 8 | 511.0 | |
| Fitness | 56.4 | 45.9 | 23 | 116.1 | 102.5 | 13 | 232.2 | |
| Total | 353.8 | 315.6 | 12 | 843.6 | 764.7 | 10 | 1,880.8 |
GEOGRAPHIC BREAKDOWN OF NET SALES
| 4-6/ 2012 |
4-6/ 2011 |
Change % |
1-6/ 2012 |
1-6/ 2011 |
Change % |
2011 | |
| EMEA | 133.1 | 129.7 | 3 | 359.8 | 343.8 | 5 | 917.6 |
| Americas | 167.4 | 146.5 | 14 | 373.1 | 332.9 | 12 | 742.1 |
| Asia Pacific | 53.3 | 39.4 | 35 | 110.7 | 88.0 | 26 | 221.1 |
| Total | 353.8 | 315.6 | 12 | 843.6 | 764.7 | 10 | 1,880.8 |
EBIT BY BUSINESS SEGMENT
| 4-6/ 2012 |
4-6/ 2011 |
Change % |
1-6/ 2012 |
1-6/ 2011 |
Change % |
2011 | |
| Winter and Outdoor | -25.4 | -15.1 | -14.7 | -5.8 | 118.5 | ||
| Ball Sports | 9.7 | 9.1 | 7 | 29.6 | 26.8 | 10 | 25.0 |
| Fitness | 1.0 | -0.3 | 4.9 | 3.0 | 63 | 10.3 | |
| Headquarters | -5.1 | -4.6 | -10.9 | -9.2 | -18.3 | ||
| Total | -19.8 | -10.9 | 9.2 | 14.8 | -38 | 135.5 |
CONSOLIDATED CASH FLOW STATEMENT
| Note | 4-6/ 2012 |
4-6/ 2011 |
1-6/ 2012 |
1-6/ 2011 |
2011 | |
| Earnings before interest and taxes | -19.8 | -10.9 | 9.2 | 14.8 | 135.5 | |
| Adjustments to cash flow from operating activities and depreciation |
10.8 | 13.0 | 16.3 | 18.5 | 37.9 | |
| Change in working capital | -7.0 | -50.9 | 82.4 | 22.5 | -97.6 | |
| Cash flow from operating activities before financing items and taxes |
-16.0 | -48.8 | 107.9 | 55.8 | 75.8 | |
| Interest paid and received | -12.8 | -10.9 | -15.0 | -12.1 | -20.5 | |
| Income taxes paid and received | -4.7 | -3.1 | -15.8 | -10.3 | -24.7 | |
| Net cash flow from operating activities | -33.5 | -62.8 | 77.1 | 33.4 | 30.6 | |
| Acquired operations | – | – | – | – | -6.5 | |
| Sold operations | – | 5.3 | 1.1 | 5.3 | 5.3 | |
| Acquired non-controlling interests | – | – | -3.7 | – | – | |
| Capital expenditure on non-current tangible and intangible assets |
-10.8 | -9.7 | -21.7 | -19.0 | -51.4 | |
| Proceeds from sale of tangible non- current assets |
0.1 | 0.1 | 0.4 | 0.3 | 0.6 | |
| Net cash flow from investing activities | -10.7 | -4.3 | -23.9 | -13.4 | -52.0 | |
| Net cash flow after investing activities | ||||||
| (free cash flow) | -44.2 | -67.1 | 53.2 | 20.0 | -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 |
68.2 | -5.2 | 190.5 | -5.0 | 94.9 | |
| Net cash flow from financing activities | 68.2 | -5.2 | 84.4 | -57.8 | 14.6 | |
| Cash and cash equivalents on April 1/January 1 |
191.6 | 118.1 | 78.8 | 84.7 | 84.7 | |
| Translation differences | 1.1 | 0.2 | 0.3 | -0.9 | 0.9 | |
| Change in cash and cash equivalents | 24.0 | -72.3 | 137.6 | -37.8 | -6.8 | |
| Cash and cash equivalents on June 30/December 31 |
216.7 | 46.0 | 216.7 | 46.0 | 78.8 |
CONSOLIDATED BALANCE SHEET
| Note | June 30, 2012 |
June 30, 2011 |
December 31, 2011 |
|
| Assets | ||||
| Goodwill | 298.1 | 272.6 | 295.7 | |
| Other intangible non-current assets | 213.1 | 205.7 | 214.5 | |
| Tangible non-current assets | 158.5 | 140.5 | 157.8 | |
| Other non-current assets | 99.4 | 99.6 | 99.6 | |
| Inventories and work in progress | 424.1 | 389.4 | 359.7 | |
| Receivables | 437.3 | 347.4 | 611.9 | |
| Cash and cash equivalents | 216.7 | 46.0 | 78.8 | |
| Total assets | 2 | 1,847.2 | 1,501.2 | 1,818.0 |
| Shareholders’ equity and liabilities | ||||
| Shareholders’ equity | 725.9 | 717.1 | 829.4 | |
| Long-term interest-bearing liabilities | 414.6 | 326.7 | 251.4 | |
| Other long-term liabilities | 23.0 | 18.4 | 22.7 | |
| Current interest-bearing liabilities | 259.1 | 44.1 | 219.0 | |
| Other current liabilities | 394.7 | 367.3 | 463.1 | |
| Provisions | 29.9 | 27.6 | 32.4 | |
| Total shareholders’ equity and liabilities | 1,847.2 | 1,501.2 | 1,818.0 | |
| Equity ratio, % | 39.3 | 47.8 | 45.6 | |
| Gearing, % | 63 | 45 | 47 | |
| EUR 1.00 = USD | 1.2590 | 1.4488 | 1.2939 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
| Note | Sh- are capi- tal |
Pre- mi- um fund |
Fund for own sha- res |
Trans- lation diffe- ren- ces |
Fair value and other reser- ves |
Inves- ted unre- stricted equity reserve |
Hybrid bond |
Retai- ned ear- 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 |
-26.0 | -26.0 | ||||||||
| Cash flow hedges |
-6.7 | -6.7 | ||||||||
| Income tax related to cash flow hedges |
1.7 | 1.7 | ||||||||
| Net result | 4.5 | 4.5 | ||||||||
| Total comp- rehensive income |
-26.0 | -5.0 | 4.5 | -26.5 | ||||||
| Transact- ions with owners: |
||||||||||
| Repurch- ase of own shares |
-9.2 | -9.2 | ||||||||
| Share- based incentive programs |
5.4 | 0.8 | 6.2 | |||||||
| Interest on hybrid bond |
-7.2 | -7.2 | ||||||||
| Dividend distribution |
5 | -36.3 | -36.3 | |||||||
| Balance at June 30, 2011 |
292.2 | 12.1 | -9.4 | -60.3 | -10.6 | 151.5 | 60.0 | 279.1 | 714.6 | |
| 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 |
8.7 | 8.7 | ||||||||
| Cash flow hedges |
-4.0 | -4.0 | ||||||||
| Income tax related to cash flow hedges |
1.0 | 1.0 | ||||||||
| Net result | -3.7 | -3.7 | ||||||||
| Total comp- rehensive income |
8.7 | -3.0 | -3.7 | 2.0 | ||||||
| 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 | ||||||
| Hybrid bond |
4 | -60.0 | -7.2 | -67.2 | ||||||
| Dividend distribution |
5 | -38.9 | -38.9 | |||||||
| Balance at June 30, 2012 |
292.2 | 12.1 | -7.0 | -17.9 | 4.2 | 154.4 | – | 287.9 | 725.9 |
| Note | Non- cont- rolling inte- rests |
Total share- hold- ers’ equ- ity |
|
| Balance at Jan. 1, 2011 |
2.6 | 790.2 | |
| Other compre- hensive income: |
|||
| Translation differences |
-26.0 | ||
| Cash flow hedges |
-6.7 | ||
| Income tax related to cash flow hedges |
1.7 | ||
| Net result | 4.5 | ||
| Total comp- rehensive income |
-26.5 | ||
| Transact- ions with owners: |
|||
| Repurch- ase of own shares |
-9.2 | ||
| Share- based incentive programs |
6.2 | ||
| Interest on hybrid bond |
-7.2 | ||
| Dividend distribution |
5 | -0.1 | -36.4 |
| Balance at June 30, 2011 |
2.5 | 717.1 | |
| Balance at Jan. 1, 2012 |
2.6 | 829.4 | |
| Other compre- hensive income: |
|||
| Translation differences |
8.7 | ||
| Cash flow hedges |
-4.0 | ||
| Income tax related to cash flow hedges |
1.0 | ||
| Net result | -3.7 | ||
| Total comp- rehensive income |
2.0 | ||
| Transact- ions with owners: |
|||
| Share- based incentive programs |
3.2 | ||
| Hybrid bond |
4 | -67.2 | |
| Dividend distribution |
5 | -38.9 | |
| Other change | -2.6 | -2.6 | |
| Balance at June 30, 2012 |
– | 725.9 |
QUARTERLY BREAKDOWN OF NET SALES AND EBIT
| Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | |
| NET SALES | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 |
| Winter and Outdoor | 150.9 | 256.5 | 375.0 | 395.7 | 133.4 | 233.5 | 416.5 | 300.3 |
| Ball Sports | 146.5 | 173.6 | 109.0 | 106.7 | 136.3 | 159.0 | 107.3 | 114.0 |
| Fitness | 56.4 | 59.7 | 72.9 | 56.8 | 45.9 | 56.6 | 59.6 | 52.6 |
| Total | 353.8 | 489.8 | 556.9 | 559.2 | 315.6 | 449.1 | 583.4 | 466.9 |
| Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | |
| EBIT | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 |
| Winter and Outdoor | -25.4 | 10.7 | 45.0 | 79.3 | -15.1 | 9.3 | 51.2 | 58.2 |
| Ball Sports | 9.7 | 19.9 | -0.7 | -1.1 | 9.1 | 17.7 | -5.4 | 3.5 |
| Fitness | 1.0 | 3.9 | 4.5 | 2.8 | -0.3 | 3.3 | 2.0 | 2.8 |
| Headquarters | -5.1 | -5.5 | -2.5 | -6.6 | -4.6 | -4.6 | 0.6 | -8.7 |
| Total | -19.8 | 29.0 | 46.3 | 74.4 | -10.9 | 25.7 | 48.4 | 55.8 |
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.
| Net sales | Earnings before interest and taxes |
Financing income and expenses |
Earnings before taxes |
Assets | |
| 1-6/2012 | |||||
| Winter and Outdoor | 407.4 | -14.7 | 817.7 | ||
| Ball Sports | 320.1 | 29.6 | 405.5 | ||
| Fitness | 116.1 | 4.9 | 242.0 | ||
| Segments, total | 843.6 | 19.8 | 1,465.2 | ||
| Unallocated items*) | -10.6 | -14.2 | 382.0 | ||
| Group total | 843.6 | 9.2 | -14.2 | -5.0 | 1,847.2 |
| 1-6/2011 | |||||
| Winter and Outdoor | 366.9 | -5.8 | 742.5 | ||
| Ball Sports | 295.3 | 26.8 | 363.3 | ||
| Fitness | 102.5 | 3.0 | 210.8 | ||
| Segments, total | 764.7 | 24.0 | 1,316.6 | ||
| Unallocated items*) | -9.2 | -9.1 | 184.6 | ||
| Group total | 764.7 | 14.8 | -9.1 | 5.7 | 1,501.2 |
| 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
| 1-6/ 2012 |
1-6/ 2011 |
2011 | |
| EMEA | 359.8 | 343.8 | 917.6 |
| Americas | 373.1 | 332.9 | 742.1 |
| Asia Pacific | 110.7 | 88.0 | 221.1 |
| Total | 843.6 | 764.7 | 1,880.8 |
3. DERIVATIVE FINANCIAL INSTRUMENTS
| June 30, 2012 |
June 30, 2011 |
December 31, 2011 |
|
| Nominal value | |||
| Foreign exchange derivatives | 802.9 | 664.0 | 922.6 |
| Interest rate swaps | 100.0 | 139.0 | 50.0 |
| Cross currency swaps | 57.0 | 55.6 | 56.1 |
| Fair value | |||
| Foreign exchange derivatives | 0.6 | -7.9 | 2.0 |
| Interest rate swaps | -3.5 | -2.1 | -3.1 |
| Cross currency swaps | 0.5 | 0.4 | 0.5 |
4. HYBRID BOND
On March 12, 2012 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
| June 30, 2012 |
June 30, 2011 |
December 31, 2011 |
|
| Guarantees | 21.7 | 13.2 | 21.4 |
| Liabilities for leasing and rental agreements | 128.2 | 115.4 | 123.2 |
| Other liabilities | 37.5 | 19.6 | 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
