Amer Sports Half Year Financial Report January-June 2018

Amer Sports Corporation
STOCK EXCHANGE RELEASE
July 26, 2018 at 1:00 p.m.

Amer Sports Half Year Financial Report January-June 2018

APRIL-JUNE 2018

• Net sales were EUR 483.0 million (April-June 2017: 495.8). In local currencies, net sales increased by 2%.
• EBIT excluding items affecting comparability was EUR -25.5 million (-22.8). Items affecting comparability were EUR -4.1 million (+1.0).
• Earnings per share excluding IAC were EUR -0.22 (-0.20). Earnings per share were EUR -0.25 (-0.19).
• Solid view on H2, driven by up to double-digit pre-order growth in Winter Sports Equipment, Arc'teryx, Sports Instruments, and strong expected order position in Precor, which just won its largest ever customer contract.
• Outlook for 2018 unchanged.
• Peak Performance acquisition will further contribute to profit and growth as of Q3.

JANUARY-JUNE 2018

• Net sales were EUR 1,106.8 million (January-June 2017: EUR 1,160.0 million). In local currencies, net sales increased by 2%.
• Gross margin was 45.6% (44.4).
• EBIT excluding IAC was EUR 14.9 million (12.7). Items affecting comparability were EUR -4.1 million
  (-5.7).
• Earnings per share excluding IAC were EUR -0.01 (-0.01). Earnings per share were EUR -0.04 (-0.04).
• Free cash flow EUR -20.6 million (+60.9), reflecting inventory building for the second half pre-order deliveries.

OUTLOOK
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.

HEIKKI TAKALA, PRESIDENT AND CEO:
Q2 is our smallest quarter, during which we prepare for the significantly bigger H2 and we spend Opex and build inventory against confirmed pre-orders and expected demand. For H2 2018, our initiative pipeline is robust, and we expect strong growth in Arc'teryx, Winter Sports Equipment, Sports Instruments, and Fitness, which is boosted by the largest ever customer deal we just won for two years.