Amer Sports Corporation
STOCK EXCHANGE RELEASE
September 5, 2018 at 7:00 p.m.
Amer Sports updates its strategy
The company continues to pursue Sustainable Profitable Growth and prioritized acceleration, whilst further driving transformation of the portfolio towards areas of faster growth, higher profitability, and better asset efficiency
Amer Sports Corporation has updated the company’s strategy. The company continues to drive sustainable profitable growth as well as prioritized acceleration in Softgoods, Business to Consumer, China, United States, and digitalization. Going forward, the Company will further drive transformation towards areas of faster growth, higher profitability, and better asset efficiency, first through the integration of the acquired Peak Performance business, and by the choice to focus the portfolio with the decision to place the Mavic cycling business under strategic review. Today Mavic represents app. 3.5% of the Group sales.
In the mid-term, the company will complete the current strategy cycle of the Fitness and Sports Instruments businesses, both of which are now delivering strong growth and improvement following the strategic investment choices. As the performance confirms itself and the units grow towards their target scale, the company will assess their long-term strategic options, including standalone opportunities.
The company’s financial targets remain unchanged:
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Net sales: mid-single digit organic, currency-neutral annual growth
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Profit: Annual EBIT growth (excl. items affecting comparability, IAC) ahead of net sales growth
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Cash flow conversion: Free cash flow / net profit at least 80%
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Net debt / EBITDA: Year-end net debt / EBITDA ratio max 3x
Amer Sports President and CEO Heikki Takala:
“We have continued to deliver sustainable profitable growth and solid value creation. Our strategy is proven, driving both continuous improvement and targeted transformation. The company profile is today increasingly attractive with especially Softgoods, B2C, and China growing to significant weight in the portfolio and contributing disproportionally to our value creation.
Going forward we continue to capitalize on the proven strategy whilst accelerating our portfolio transformation towards areas of faster growth, higher profitability, and better asset efficiency. Now we accelerate further in Softgoods through Peak Performance, and we also review the portfolio focus opportunities as we place the Mavic Cycling business under strategic review. Next, we will complete the current strategy cycle of the Fitness and Sports Instruments businesses, both of which have positive momentum, and assess the alternatives for realizing their maximum potential.
With our updated strategy, we expect to deliver strong continuous performance and attractive value creation.”
2018 OUTLOOK MAINTAINED
Amer Sports outlook for 2018 is unchanged. In 2018, Amer Sports’ net sales in local currencies as well as EBIT excl. IAC are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven. The company will prioritize sustainable, profitable growth, focusing on its five strategic priorities (Apparel and Footwear, Direct to Consumer, China, US, and Connected Devices and Services) whilst continuing its consumer-led transformation.
CAPITAL MARKETS DAY SEPTEMBER 6, 2018
Amer Sports organizes a Capital Markets Day in Helsinki tomorrow, September 6 starting at 9:00 a.m. EEST. In the event, the updated company strategy will be presented in more detail.
Live webcast: https://amersports.videosync.fi/2018-09-06-cmd
For further information, please contact:
Heikki Takala, President and CEO, tel. +358 20 712 2510
Jussi Siitonen, CFO, tel. +358 20 712 2511
Samppa Seppälä, Director, Corporate Communications and IR, tel. +358 50 568 0533
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, Arc’teryx, Peak Performance, Atomic, Mavic, Suunto, Wilson 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).
