Winter Sports Equipment
To sustainable
profitability
Michael Schineis, President
1
Disclaimer
Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and
estimates, are forward-looking statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual
results to materially differ from those expressed in such forward-looking statements.
Amer Sports assumes no responsibility to update any of the forward-looking statements contained herein. No
representation or warranty, express or implied, is made or given by or on behalf of Amer Sports or its
employees or any other person as to the accuracy, completeness or fairness of the information or opinions
contained in this presentation.
Winter Sports Equipment
Net Sales
MEUR
•
Salomon and Atomic winter
sports equipment are among the
world’s most recognized winter
sports brands. The brands
complement each other in terms
of their product offerings and
main markets.
•
The selection of winter sports
equipment under the Salomon
and Atomic brands are:
450
400
350
300
250
347.7
324.5
323.3
46.5
54.4
48.4
52.5
2007
2008
2009
2010
200
150
100
50
0
Sales by unit
Sales by Region
SB
10 %
Americas
17 %
APAC
12 %
XC
12 %
– cross-country skis, boots,
bindings and poles
Alpine
78 %
EMEA
71 %
2009
3
– alpine skis, boots, bindings,
poles and helmets
– snowboards, snowboard boots
and snowboard bindings
Winter Sports Equipment
Global market volume 2009/10
Alpine
940M€
Alpine business
4
Snowboard
320 M€
Nordic
180 M€
≅ 3 times Snowboard business
≅ 5 times Nordic business
* Source: Management estimate
Winter Sports Equipment
Global market volume 2009/10 – by segment
Alpine Boots
330M€
Boots
100M€
Alpine
Skis&Bdg
610M€
Alpine business
5
Boards
135M€
Bdgs
85M€
Boots
64M€
XC Skis
91M€
Bdg
25M€
~ 70% set business
* Source: Management estimate
Participation: People continue to ski
400
in millions
Skier days (daily skipass)
Alpine Skiing
350
300
250
200
150
100
50
0
6
* Source: National Ropeway Associations / Internet researches
We are undisputed leader in our industry
With gross sales of over 400 MEUR we are undisputed leader in our industry
MEUR
386
400
30 %
2010
450
28 %
25 %
350
WS Gross Sales M-EUR
Value MS %
300
20 %
250
208
200
15 %
207
15 %
170
15 %
150
150
12 %
11 %
100
120
108
10 %
10 %
8%
50
5%
Amer
Sources:
7
Jarden
Amer Sports: WSE Report 2009
Jarden: Estimation (Völkl 130mio)
Rossignol
Tecnica
Rossignol: Estimation
Tecnica Group: Estimation
Head
Burton
Fischer
Head: 2009 Result (according to press release 25.02.2010)
Fischer: result mentioned on Website (excl. Löffler)
Hardgoods only
Market evolution and Amer Sports actions
2 000
1 910
Total Winter Sports Equipment market value in MEUR
1 684
MEUR
-12%
1 415
1 500
1 400
1 395
-16%
+1%
-1%
1 000
500
05/06
06/07
07/08
08/09
• Downsizing
capacity
2005/06/07
Carving boom
is at its end
2006/07
Crisis due to global
„no snow“ winter
actions
8
09/10
• Streamlining
Opex (approx.
50 MEUR)
• Stabilizing
Industrial
Operations
• Launching
innovative
products
• Gaining
market shares
2008/09
2010
10/11
• Continue to
gain market
shares
• Focus on
operational
excellence
2011 - 2013
Alpine, Nordic, Snowboarding
Outlook for 2010 is encouraging
9
•
Prebookings up bx 15% (in LC) passing the 400 MEUR level
•
Profitability improvement thanks to higher gross margins and tight opex
control
•
Significant improvement of DSI
•
The strongest growth, an increase of approximately 32%, was recorded
in cross country skiing while alpine skiing increased by about 13% (all in
local currencies).
Group development priorities
10
•
Clear portfolio roles and synergies, integrated
company
•
Grow faster in softgoods
•
Win with consumers
•
Win in go-to-market
•
Operational excellence
Win with consumers
and go-to-market
11
Gaining market shares
12
•
We continue to invest in our brands
•
Sportsmarketing – working with the highest level of athletes
•
Trendsetting products in design and technology
•
Using modern technologies to interact with our consumers
• Global market leader in ski boots
• Trendsetting brand in the Freeski
market
• #3 brand in snowboarding
• Over 1 Mio pairs of alpine bindings
(shared concept with Atomic)
• #2 brand in XC skiing with a strong
market leadership in XC boots
• Helmets are showing profitable
growth
13
• Global market leader in alpine skis
• Gaining significant market shares
in ski boots (doubling the business
in the last 3 years)
• Recovering in XC business
(shooting for #3 globally)
• Niche player in snowboarding
(Europe, Backcountry, Rental)
14
Sportsmarketing
SCHILD
CARLSON
RAICH
14x
ZACKRISSON
JANKA
MATT
NEUREUTHER
15
GUAY
DAVID
ABMA
Gaining market shares by trendsetting products
Our market is rewarding innovations
Ski boots
1st year QUEST
 45,000 pairs
1st year LIVE FIT
 60,000 pairs
in a total market with 3.6 million pairs
16
Using modern technologies
ATOMIC MOBILE CHANNEL
(Launch winter seaoson 2010/11)
Further growth will come from helmet, accessories
and protective
Alpine
940M€
Snowboard
320 M€
Protectives
285 M€
Protective almost as big as Snowboarding
18
Nordic
180 M€
Further growth will come from helmet, accessories
and protective
400 000
350 000
Helmets *
Units
300 000
250 000
200 000
150 000
100 000
50 000
0
2006
2007
2008
2009
Outlook
2010
Accelerate growth in helmets
• Increase number of doors
• New technologies („Custom Air“)
• Sportsmarketing
• Launch the first generation of
Salomon goggles at ispo 2011
19
* today 90% under Salomon brand
Operational
excellence
20
Market evolution and Amer Sports actions
2 000
1 910
Total Winter Sports Equipment market value in MEUR
1 684
MEUR
-12%
1 415
1 500
1 400
1 395
-16%
+1%
-1%
1 000
500
05/06
06/07
07/08
08/09
• Downsizing
capacity
2005/06/07
Carving boom
is at its end
2006/07
Crisis due to global
„no snow“ winter
actions
21
09/10
• Streamlining
Opex (approx.
50 MEUR)
• Stabilizing
Industrial
Operations
• Launching
innovative
products
• Gaining
market shares
2008/09
2010
10/11
• Continue to
gain market
shares
• Focus on
operational
excellence
2011 - 2013
Alpine, Nordic, Snowboarding
A holistic program covering all elements of our value chain from R&D,
over operations to supply and logistics
•
to improve gross margins
•
to push down our break even point
•
to improve our capability to master poor snow / good snow winters
•
to improve quality and customer service
29 projects followed through KPI‘s on a day to day basis
22
Highlights
Increase production flexibility to produce close to order and to minimize
inventory risk
This goes hand in hand by reducing our industrial lead times significantly since 2007
(e.g. alpine bindings from 14 in 2007 to 9 weeks in 2010)
23
e.g. Atomic business
Highlights
•
24
Shifting production capacity from Austria to Bulgaria for low and mid
price alpine and XC skis
Highlights
•
In-lining of production equipment (mainly Altenmarkt plant and
Bulgarian plant)
On/Off cart 36 times; planning complexity
On/Off cart <10 times; material flow
Highlights
Increase standardization of raw materials up to 50%
26
•
Inside Salomon and Atomic brand to reduce complexity
•
Across Salomon and Atomic brand to accelerate economies of scale
Standardization
From
27
Standardization
… to
Today
28
Summary
29
•
Improving our operational excellence and pushing down our break-even
point is our priority
•
We continue to invest in our brands
•
Innovative products and marketing programs will help us to gain market
shares
•
We see further growth potential in new activities like helmets, goggles,
etc.