Amer Sports Corporation STOCK EXCHANGE RELEASE August 31, 2016 at 1:00 p.m.
Amer Sports confirms its 2020 financial targets, raising the organic growth goal
Amer Sports confirms that it is on the glidepath to deliver the 2020 financial targets introduced in August 2015. The financial targets and acceleration priorities are unchanged, but now supported by further organic acceleration building blocks. Therefore the company now targets to reach EUR 3.5 billion organically, instead of through a combination of organic growth and acquisitions, as announced in 2015. To support the acceleration, the company pursues continuous productivity improvement. In addition, Amer Sports will start a targeted restructuring to free up operating expenses of approximately EUR 20 million, which will be reallocated to fund the acceleration. Restructuring expenses will be EUR 20-25 million (pre-tax, reported under "Items affecting comparability"), recognized in the second half of 2016 and first half of 2017. The cash flow impact will be approximately EUR 20 million. The restructuring will be implemented by the end of 2017.
The minimum EUR 3.5 billion net sales target from 2015 was based on a combination of organic growth and acquisitions. The expectation was that acquisitions would represent approximately EUR 200 million of net sales. In this 2016 update, the company confirms organic building block sufficiency to reach EUR 3.5 billion. Acquisitions remain firmly in the toolbox, and represent further upside potential.
"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", says Heikki Takala, President and CEO of Amer Sports. "Acquisitions will remain in the toolbox, as our ambition is to grow toward EUR 4 billion in net sales in the next 5+ years".
The financial targets set in 2015 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 strategic acceleration priorities announced in 2015 are Apparel and Footwear, US, China, Business to Consumer (own retail and e-commerce), as well as digitally connected devices and services.
Capital Markets Day September 1, 2016
Amer Sports organizes a Capital Markets Day in Helsinki tomorrow, September 1, starting at 9 a.m. EET. The CEO's and CFO's presentations can be followed as live webcast via http://cloud.magneetto.com/amersports/2016_0901_CMD/angular .
For further information, please contact: Päivi Antola, Director, Corporate Communications and IR, tel. +358 20 712 2537
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, Precor, Suunto and Mavic. 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).
