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Accelerating for the future Amer Sports CMD 2014 // Heikki Takala, President & CEO

Amer Sports Sustainable Growth Model (SGM)

• We pursue a Sustainable Growth Model: profitable growth and healthy

balance sheet.

• Our SGM consists of i) revenue growth, ii) making and improving profits, and

iii) investing for the future.

• Our growth can be organic or through acquisitions. We prefer organic.

• Our profit can come from growth, or through cost cutting. We prefer growth.

• We constantly renew ourselves to allocate resources into more attractive

areas: faster growth, higher profitability, better asset efficiency.

Amer Sports CMD 2014 2

Amer Sports portfolio logic • Amer Sports is

– A balanced equipment and softgoods company, with a unique model of leveraging

our authentic brands

– An integrated company where portfolio composition is determined by synergies and

Amer Sports being the “right owner”

• We are the “right owner” for any asset as long as we develop its performance

relatively better vs. its competition and/or we create competitive advantage

through unique portfolio logic

• As long as we own an asset, we aim at growing its revenue, make profits, and

invest for its future


High level performance assessment

Long-term financial targets – improvement continues


Target 2009 2010 2011 2012 2013 2014

Growth Delivering organic, currency-

neutral annual growth of 5%

-4% 8% 9% 5% 8% 5%

Profitability EBIT of at least 10% of net

sales

3.2% 6.2% 7.2% 6.7% 7.3% EBIT

improvement

Cash flow Annual free cash flow equal

to net profit

C/F of

Net

Profit

4.5

C/F of

Net

Profit

0.7

C/F of Net

Profit

negative

C/F of

Net

Profit

0.9

C/F of

Net Profit

0.5

Balance

sheet

structure

Year-end Net Debt / EBITDA

ratio of 3 or less

3.6 2.2 2.3 2.5 2.2

Progress is driven through our strategic priorities

Clear portfolio roles

and synergies,

integrated company

– Majority of units

improving according to

their portfolio role

– Scale and synergies:

example Gross Margin

(up 4%-pts vs. 2009)


Faster growth in

softgoods

– 2009-2013:

Softgoods CAGR

17%

– Strong growth

continues with

1+ BEUR in sight

Win with

consumers

– Leveraging our

brands to engage

with more

consumers, in

more occasions,

more often

Win in Go to

Market

– Controlled distribution

expansion

– Emerging markets

progressing

– B2C turning into a

contributor. 200+ own

retail stores, 60 e-

commerce stores

Operational

excellence

– Company

organized for

driving

sustainable

fundamentals

with improving

KPIs

1 2 3 4 5

Majority of units are progressing per targets


Business area Objective Status

Footwear Further accelerate profitable growth Growth continues with high profitability. CAGR

2009-13 18%.

Apparel Drive significant revenue growth for scale Fast growth with improving profitability. CAGR

2009-13 18%.

Winter Sports Equipment To sustainable profitability. Profitable growth

through continuous renewal

Break-even point down by ~20 MEUR. Growth

in new segments.

Cycling Re-build profitability, then accelerate Profitable business. Renewal and integration

for faster growth.

Sports Instruments To target profitability, then accelerate Successful turnaround, profitable growth

accelerated. CAGR 2009-13 11%.

Ball Sports Re-set the base, then re-ignite profitable

growth Lagging behind targets, now restructuring.

Fitness Back to target profitability through global

growth, margin improvement, and efficiency

Well on improvement track, CAGR 2009-13

10%, 2013 EBIT-% 8.2%.

In 2010-13 we moved from “2nd division” to the premier league

30

28

24

19 18

22

20

18

16

14

12

12 3 11 10 9 8 20 7 6 5 22 21

8

4 2 1 0 -1 -2

-2

-4

-6

26

10

6

4

2

0

17 16 15 14 13

EBIT-% 2013

AMER SPORTS

AMER SPORTS 2006-2009

SALES CAGR%

2010-2013

Peer Group

• Adidas

• Anta Sports Products

• Asics

• Callaway

• Columbia

• Dunlop

• Head

• Jarden

• Life Time Fitness

• Nike

• Puma

• Quiksilver

• Under Armour

• VF

• Wolverine World Wide

Data Source: Bloomberg

We continue to renew and restructure ourselves for further acceleration

CMD 2013: mid-term targets confirmed, focus on acceleration


Sales ~1.5 BEUR

EBIT <3%

Sales ~2.5 BEUR

EBIT ~10%

Sales >3 BEUR

(+5%/a)

EBIT ~10% Building blocks

in place

2009 2015-16 2020

?

Restructuring for acceleration

• We continue to renew and restructure ourselves

• Our 2012 restructuring enabled turnaround of Winter Sports

Equipment and acceleration of Softgoods, B2C, and emerging

markets

• Our 2014 restructuring is designed to turn around Ball Sports and

further accelerate proven growth drivers and ensure appropriate

resourcing of new learning areas


Accelerate through the Core

1. Big categories:

• Keep appropriate momentum in hardgoods

• Footwear & Apparel towards 50% of the Group

2. Big brands: towards full long-term potential

3. Big countries: drive USA, core EMEA markets, Japan, and China.

Re-confirm model in Russia and Latin America.

4. Multi-channel: own retail and e-commerce to 10+% of sales


Our next growth area: Digital consumer engagement • Digital/connected products represent already >5% of the Group sales

• Our brands talk to tens of millions of consumers via our websites

• Our 60 e-commerce shops engage and convert tens of millions of

consumers

• We offer a magnitude of digitally customizable products

• We have a scalable CRM database with millions of registered

consumers


Amer Sports Connected Digital Ecosystem:

Accelerating the potential of the portfolio


Brand Sites

AS 360

CRM

Database

Mobile Engagement Connected Products

Brand and

Sport

specific

Mobile

Applications

(e.g. Suunto

Movescount,

Salomon

CityTrail,

Wilson

Basketball)

AMER SPORTS ECOMMERCE

Service Platforms

3rd party

services

through API’s

We now accelerate in Digital

Digital capabilities have been established, and acceleration is underway:

• Drive digitally connected products/devices towards 10% of sales

• Multiply traffic to our websites and e-commerce

• Increase conversion (through both e-commerce and wholesale)

• Step change loyalty through bigger number of registrants in our CRM database


Summary

Prioritized, sequenced program continues


Clarify future direction,

build critical capabilities,

allocate resources and

reignite growth

Deliver mid-term

targets and prepare

for acceleration

• Sustainable Growth Model

• Integration for scalable,

synergistic platform:

acquisition readiness

• Qualification of business cases

for future acceleration

• On-going renewal and

restructuring

Sales Acceleration at accretive

profitability

Continuous portfolio

transformation towards:

• Faster growth

• Higher profitability

• Asset efficiency

~2010 – 2013 ~2014 – 2016 ~2017 – 2020

• New strategy

• Transformation from

Hardgoods to ”Hybrid”

• Drive organic growth

• Operational excellence

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.

www.amersports.com


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