Amer Sports Half Year Financial Report January-June 2016

Amer Sports Corporation                          
STOCK EXCHANGE RELEASE
July 28, 2016 at 1:00 p.m.

Amer Sports Half Year Financial Report January-June 2016

APRIL-JUNE 2016

• Net sales EUR 477.4 million (April-June 2015: 461.1). In local currencies, net sales increased by 6%. Organic growth was 5%, driven by Footwear and Apparel.
• Gross margin 44.7% (44.1).
• EBIT EUR -12.1 million (-9.0 excluding items affecting comparability, IAC).
• Net sales and profitability were adversely impacted by the US customer bankruptcies.
• Earnings per share EUR -0.13 (-0.11 excluding IAC).
• Free cash flow EUR -54.3 million (11.5) due to seasonal fluctuation.
• Outlook for 2016 unchanged.

JANUARY-JUNE 2016

• Net sales EUR 1,112.9 million (January-June 2015: 1,037.0). In local currencies, net sales increased by 9%. Organic growth was 6%.
• Gross margin 46.3% (45.1).
• EBIT excluding IAC EUR 33.9 million (24.6). Items affecting comparability were EUR -6.3 million (-8.0).
• Earnings per share excluding IAC EUR 0.11 (0.04).
• Free cash flow EUR -21.5 million (54.5).

OUTLOOK
In 2016, Amer Sports net sales in local currencies are expected to increase and EBIT margin excluding items affecting comparability to improve from 2015, despite challenging market conditions. The company will focus on growing the core business and accelerating in five prioritized areas: Apparel and Footwear, US, China, Business to Consumer, as well as digitally connected devices and services.

IMPACT OF NEW ESMA GUIDELINES
New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) are effective for the financial year 2016. Amer Sports presents APMs to reflect the underlying business performance and to enhance comparability between financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. As of Q1 2016, Amer Sports relabels the previously referenced "excluding non-recurring items" with "excluding items affecting comparability" (IAC). Operating segments' EBIT is reported excluding IAC. Items affecting comparability and APMs used by Amer Sports are defined in note 10 of this report.