Amer Sports Corporation STOCK EXCHANGE RELEASE 1(17) February 13, 2007 at 1:15 pm AMER SPORTS CORPORATIONS FINANCIAL STATEMENT BULLETIN 2006 (IFRS) Net sales increased 31% thanks to Salomons inclusion in the full- year figures. Net sales grew by 4% as compared to 2005 pro forma figure. - Amer Sports net sales increased 31% thanks to Salomons inclusion in the full-year figures. Net sales grew by 4% as compared to 2005 pro forma figure and was EUR 1,792.7 million (EUR 1,732.0 million in 2005). - Earnings before interest and taxes (EBIT) amounted to EUR 120.2 million (117.1) and earnings per share to EUR 0.98 (0.87). - The warm early winter cut into the volume of re-orders in the winter sports business. Amer Sports Q4 EBIT came in at EUR 69.7 million (67.8). - Amer Sports net sales growth in local currencies is expected to remain at last year's level in 2007 due to uncertainty caused by uncommon weather during the 2006/07 winter season. Amer Sports earnings are expected to improve in 2007 thanks to factors such as Salomons turnaround initiative in 2006 and the industrial co- operation between Atomic and Salomon. It is estimated that Amer Sports EBIT will amount to EUR 130-145 million in 2007, with earnings per share coming in at EUR 1.10-1.25. Cash flow from operating activities is expected to improve substantially. - The dividend proposal is EUR 0.50 per share (0.50). EUR million Q4/ Pro Change 2006 Pro Change 2006 forma % forma % Q4/ 2005 2005 Net sales 581.6 558.5 4 1,792. 1,732. 4 7 0 Gross profit 220.4 215.4 2 697.4 684.4 2 EBIT 69.7 67.8 3 120.2 117.1 3 Financing income -5.3 -6.6 -23.6 -24.0 and expenses Earnings before 64.4 61.2 5 96.6 93.1 4 taxes Net result 47.0 40.8 15 70.5 62.4 13 Earnings per 0.65 0.57 0.98 0.87 share, EUR In the reporting of profit and loss statement information and earnings per share for 2006, Amer Sports uses pro forma figures for 2005 in which Salomon has been accounted for as from January 1, 2005 as its comparison information. The figures do not include non-recurring items related to the Salomon acquisition. More information on the use of pro forma figures has been provided in the stock exchange bulletin released on April 20, 2006. Roger Talermo, President and CEO: On the whole, good trends held sway in the sports equipment market in 2006. With the exception of Japan, we posted higher net sales in all our major markets. Pre-order deliveries of for the 2006/2007 season were solid in the winter sports business. However, the warm early winter impacted significantly on the volume of re-orders in Q4. Salomon achieved its objectives and the profitability of winter sports equipment improved. Atomics Q4 operations fell significantly short of expectations. Industrial co-operation between Salomon and Atomic has progressed in line with plans. We expect that the changes being ushered in will yield substantial earnings improvements in 2007 and 2008. Were now stronger than ever in the sports equipment business world-wide. We must bolster our global leadership there must be no doubt that we are the number one player in this business. That said, we will not neglect our excellent growth potential in technical apparel and footwear. For further information, please contact: Mr Roger Talermo, President & CEO, tel. +358 9 7257 8210 Mr Pekka Paalanne, Senior Vice President & CFO, tel. +358 9 7257 8212 Mr Tommy Ilmoni, Vice President, Investor Relations, tel. +358 9 7257 8233 A combined news conference, conference call and live webcast concerning the financial statement bulletin will be held on February 13, 2007, at 3:00 pm Finnish time at Amer Sports headquarters (address: Mäkelänkatu 91, Helsinki). The event will be held in English. For instructions on how to participate in the conference call, visit the Amer Sports web site at www.amersports.com. AMER SPORTS CORPORATIONS FINANCIAL STATEMENT BULLETIN 2006 (IFRS) Amer Sports net sales increased 31% due to Salomons inclusion in the full-year figures. Pro forma net sales were up 4% to EUR 1,792.7 million (EUR 1,732.0 million in 2005). Exchange rates had a negligible effect on the trend in net sales. Earnings before interest and taxes (EBIT) amounted to EUR 120.2 million (117.1). Earnings before taxes were EUR 96.6 million (93.1). Earnings per share came in at EUR 0.98 (0.87). Amer Sports net sales growth in local currencies in 2007 is expected to remain at last year's level due to uncertainty caused by uncommon weather during the 2006/07 winter season. Amer Sports earnings are expected to improve in 2007 thanks to factors such as Salomons turnaround initiative in 2006 and the industrial co- operation between Atomic and Salomon. It is estimated that Amer Sports EBIT will amount to EUR 130-145 million in 2007, with earnings per share coming in at EUR 1.10-1.25. Cash flow from operating activities is expected to improve substantially. OCTOBER-DECEMBER NET SALES AND EBIT Amer Sports Q4 net sales were up 4% to EUR 581.6 million (EUR 558.5 million in 2005). Q4 is the winter sports season. Accordingly, the Groups business focuses on these sports in this period. Winter sports accounted for 57% of consolidated net sales in Q4 (55%). Salomons net sales in the winter sports equipment amounted to EUR 188.6 million (178.2) and Atomics to EUR 82.2 million (85.9). The weather was warm in almost all winter sports market territories, cutting into the number of re-orders and weakening sales of winter sports equipment. Net sales by business segment were as follows: Salomon 49%, Wilson 19%, Precor 14%, Atomic 14% and Suunto 4%. Suuntos net sales were up 34%, Salomons 11%, Precors 3%. Wilsons net sales declined by 7% and Atomics by 4%. The split of net sales by geographical segment was as follows: EMEA (Europe, Middle East, Africa) 53%, the Americas (the United States, Canada and Latin America) 35 %, and Asia Pacific 12%. Sales in the Americas remained at the previous years level. Sales increased 10% in EMEA and declined by 4% in Asia Pacific. The Groups EBIT amounted to EUR 69.7 million (67.8). Earnings before taxes were EUR 64.4 million (61.2). Earnings per share came in at EUR 0.65 (0.57). Net financial expenses amounted to EUR 5.3 million (6.6). NET SALES AND EBIT IN 2006 Amer Sports net sales increased 31% due to Salomons inclusion in the full-year figures. Net sales grew by 4% as compared to 2005 pro forma figure and was EUR 1,792.7 million (EUR 1,732.0 million in 2005). Net sales by business segment were as follows: Salomon 37%, Wilson 32%, Precor 15%, Atomic 11% and Suunto 5%. Salomons sales were up 6%. Sales of Salomon apparel and footwear kept climbing fast, up 18%. Precors sales grew by 9% and Suuntos by 13%. Wilsons sales remained at the previous years level. Atomics net sales were down 4%. Sales of Salomon winter sports equipment and Atomic stayed at the previous years level. Sales were weakened by the mild fall season. The distribution of Asics products, a non-core category for Atomic, ended in Austria, reducing net sales by EUR 11.3 million. Exclusive of the effect of Asics, net sales would have been at last years level. The split of net sales by geographical segment was as follows: the Americas (the United States, Canada and Latin America) 45%, EMEA (Europe, Middle East, Africa) 44%, and Asia Pacific 11%. Sales increased 4% in the Americas, 3% in Asia Pacific and 3% in EMEA. The Groups EBIT amounted to EUR 120.2 million (117.1). EBIT in the comparison year was improved by EUR 5.9 million from the sale of properties. Earnings before taxes were EUR 96.6 million (93.1) and net profit was EUR 70.5 million (62.4). Earnings per share came in at EUR 0.98 (0.87). Net financing expenses amounted to EUR 23.6 million (24.0). Taxes for the period were EUR 26.1 million (30.7). The Group's taxes were reduced by tax credits received in the United States. CAPITAL EXPENDITURE The Groups capital expenditure on fixed assets totaled EUR 41.3 million (26.8). The Groups depreciation was EUR 32.2 million (37.0). RESEARCH AND DEVELOPMENT EUR 58.5 million (58.6) was invested in research and development, representing 3.3% of net sales. Salomons share of the R&D spend was 42%, while Wilson accounted for 14%, Precor 21%, Atomic 10% and Suunto 13%. FINANCIAL POSITION AND CASH FLOW The Groups net debt at the end of the year was EUR 585.4 million (December 31, 2005: EUR 601.0 million). Cash flow from operating activities after interest and taxes was EUR 45.5 million (96.4). The company's net cash flow was reduced by EUR 31.7 million due to costs associated with the re- structuring of Salomon's operations in France. Net cash flow from investing activities was EUR -71.9 million (-471.6), including the remaining purchase price paid for the acquisition of Salomon, EUR 33.4 million. The dividend payout amounted to EUR 35.9 million (36.0). Of the EUR 575 million credit facility agreed upon in December 2005, EUR 165 million and USD 100 million had been drawn at the end of the financial year, and the committed unused portion was EUR 325 million. The credit facility will mature at the end of 2011. Short-term financing is raised with a domestic commercial paper program of EUR 500 million, of which EUR 373.6 million had been used as of December 31, 2006. Liquid assets amounted to EUR 45.5 million at the end of the period (December 31, 2005: 48.7). The Group's equity ratio was 33.6% (December 31, 2005: 31.8%) and gearing was 105% (112%). BUSINESS SEGMENTS SALOMON EUR million Q4/ Pro Change Pro Change 2006 forma % 2006 forma % Q4/ 2005 2005 Net sales Winter Sports 188.6 178.2 6 345.6 348.6 -1 Equipment Apparel and 63.7 49.1 30 208.0 175.6 18 Footwear Mavic 29.8 27.8 7 107.8 99.3 9 Net sales, total 282.1 255.2 11 661.4 623.5 6 EBIT 40.3 37.9 6 23.6 18.1 30 Salomon achieved its objectives for 2006. The profitability of its winter sports equipment improved, and it racked up significantly higher sales of apparel. Also Mavics sales increased. Part of Salomons deliveries scheduled for September were delayed, rolling over from the third to the fourth quarter. This delay was caused by Salomons logistics partner not being able to deliver all the products to market on schedule. Salomons net sales increased 6%. The breakdown of net sales was as follows: Winter Sports Equipment, 52%, Apparel and Footwear, 32%, and Mavic, 16%. Of net sales, EMEA generated 65%, the Americas 24%, and Asia Pacific 11%. Sales were up 7% in EMEA, 6% in the Americas and 3% in Asia Pacific. Salomons EBIT grew to EUR 23.6 million (18.1). The good trend in net sales and improved cost control contributed to the improvement in Salomons earnings. Mavics result declined, but remained solid. Business areas Net sales of winter sports equipment were at last year's level. Weak winter conditions early in the 2006/2007 season reduced the volume of re-orders received by Salomon. Cross-country skiing experienced the fastest growth of winter sports product groups, with net sales up 19%. Sales of snowboarding equipment remained at the previous years level while sales of alpine skiing equipment decreased 5%. Net sales of apparel and footwear increased 18% to EUR 208.0 million. The apparel business posted the fastest sales growth, Salomon increased 40% and Arcteryx 26%. Bicycle component manufacturer Mavic's net sales increased 9% to EUR 107.8 million. Salomons outlook for 2007 The turnaround initiative Salomon kicked off in 2005 is progressing on schedule. It is expected to yield substantial earnings improvements in 2007 and 2008. Industrial cooperation with Atomic in particular is anticipated to result in cost- savings. As the year began, temperatures remained higher than usual in many territories, limiting snow sports opportunities in Europe, Asia and the Eastern United States. The market for winter sports equipment is expected to fall short of the 2005/06 season both in terms of volume and value due to uncertainty caused by uncommon weather during the 2006/07 winter season. Judging from the amount of pre-orders received for spring and summer 2007, footwear and apparel will continue to surge. Mavic is also expected to keep developing favorably and its profitability to remain at good level. WILSON EUR million Q4/ Q4/ Change 2006 2005 Change 2006 2005 % % Net sales Racquet Sports 41.9 45.8 -9 235.3 225.4 4 Team Sports 52.2 51.2 2 219.6 203.8 8 Golf 17.4 22.7 -23 114.7 141.2 -19 Net sales, total 111.5 119.7 -7 569.6 570.4 0 EBIT 5.2 2.9 79 54.6 52.1 5 ROCE, 12-month 38.4 36.9 rolling average Wilsons net sales remained on a par with the previous year, amounting to EUR 569.6 million. The breakdown of net sales was as follows: Racquet Sports 41%, Team Sports 39%, and Golf 20%. Of net sales, the Americas generated 67%, EMEA 19% and Asia Pacific 14%. Sales growth was 2% in the Americas. In EMEA sales were at last year's level. Sales were down 9% in Asia Pacific. Wilsons EBIT grew by 5% to EUR 54.6 million. Its earnings trend was solid in the United States, but the result weakened in Japan. Business areas The Racquet Sports Division continued to perform well. Its net sales increased 4%. Of the product groups, the best growth was seen in accessories and footwear: footwear, 16% and accessories, 14%. Team Sports net sales increased 8%. Sales were up on the corresponding period in all key product groups. Sales declined only in uniforms and training equipment. The Golf division fell short of its sales objectives, especially in Japan. Demand for golf equipment also declined in Europe. Also the new distribution strategy focusing on the major customers in the United States cut into net sales of the Golf Division. Wilsons outlook for 2007 Wilson is expected to keep growing profitably in 2007. The trend in the Racquet Sports Divisions markets is forecast to remain favorable. Wilson is confident that its Racquet Sports Division will stay on a growth track thanks to innovative new products and geographical expansion in emerging markets. The trend in Team Sports markets is expected to hold steady, with anticipated sales growth. The Golf Division improved its profitability compared with the previous year and is expected to do so in 2007 as well. PRECOR EUR million Q4/ Q4/ Change 2006 2005 Change 2006 2005 % % Net sales 83.0 80.7 3 275.6 252.1 9 EBIT 12.7 13.6 -7 34.8 31.1 12 ROCE, 12-month 50.6 51.2 rolling average Precors net sales were up 9%. Of net sales, the Americas generated 77%, EMEA 16% and Asia Pacific 7%. Sales were up 18% in EMEA, 13% in Asia Pacific and 7% in the Americas. Precors EBIT increased 12% to EUR 34.8 million. Non-recurring quality-related costs weakened earnings by about EUR 2 million. Precors sales to fitness clubs continued to soar in North America. Precors success in the fitness club market was heavily driven by the high demand for the new Experience aerobic equipment. Products in this series feature personal Cardio Theater viewing screens. Precors outlook for 2007 Precors growth in 2007 is forecast to once again outpace that of the market, with the company racking up market share gains especially in the fitness club segment. 2007 is a transitional year for home gym products. A new product collection will be launched and it is expected to give a major boost to growth in 2008. ATOMIC EUR million Q4/ Q4/ Change 2006 2005 Change 2006 2005 % % Net sales 82.2 85.9 -4 204.8 214.0 -4 EBIT 14.8 19.0 -22 16.6 22.2 -25 ROCE, 12-month 16.5 20.6 rolling average Atomics operations did not nearly measure up to expectations in Q4 2006. Unfavorable weather in all the main winter sports markets at the end of 2006 reduced the amount of re-orders the company received. During the financial year, Atomics net sales declined by 4% to EUR 204.8 million. Of net sales, EMEA generated 76%, the Americas 18%, and Asia Pacific 6%. Sales declined by 13% in Asia Pacific, by 4% in EMEA and by 3% in the Americas. The distribution of Asics products, a non-core category for Atomic, ended in Austria, reducing net sales by EUR 11.3 million. Exclusive of the effect of Asics, net sales would have been at last years level. Atomics EBIT was EUR 16.6 million (22.2). EBIT in Q4 was EUR 14.8 million (19.0). Atomics outlook for 2007 As the year began, temperatures remained higher than usual in many territories, limiting snow sports opportunities in Europe, Asia and the Eastern United States. The market for winter sports equipment is expected to fall short of the 2005/06 season both in terms of volume and value due to uncertainty caused by uncommon weather during the 2006/07 winter season. Atomics key objective for 2007 is to improve profitability. Atomic is seeking cost- savings and higher efficiency through means such as cooperation with Salomon in all the major product groups. SUUNTO EUR million Q4/ Q4/ Change 2006 2005 Change 2006 2005 % % Net sales 22.8 17.0 34 81.3 72.0 13 EBIT 1.2 -0.7 - 7.0 3.4 106 ROCE, 12-month 30.9 14.8 rolling average Suuntos net sales grew by 13%. Of net sales, EMEA generated 55%, the Americas 33%, and Asia Pacific 12%. Sales increased 18% in Asia Pacific, 17% in EMEA and 6% in the Americas. Q4 net sales were up 34%. Suuntos EBIT amounted to EUR 7.0 million (3.4). Suuntos result includes EUR 2.5 million in insurance claims received for the loss of sales margins due to the fire on a suppliers premises in 2005. Sales of wristop computers grew by 33% during the review period. Sales received a particularly strong boost from the good demand for the new Training product series. Sales of Suuntos diving instruments increased 10%, largely thanks to the new Suunto D6 wristop computer. Sales of diving and water sports suits were down. Diving instruments and wristop computers accounted for 72% (66%) of Suuntos net sales. Suuntos outlook for 2007 Suunto aims to keep bolstering its core businesses and stepping up growth in sports instruments. Suunto will continue to focus on its fitness, outdoor and diving instrument product groups. New launches are anticipated to generate growth in Suuntos net sales in 2007. Profitability is also expected to improve. AMER SPORTS WINTER & OUTDOOR AMERICAS Amer Sports is centralizing its winter and outdoor businesses in North America under single management. This step is geared towards ensuring a more efficient infrastructure for the sales and business operations of Salomon, Atomic and Suunto. PERSONNEL At the end of the year, the Group had 6,553 employees (6,667). The Group had an average of 6,786 employees (4,968) during the 2006 calendar year. The parent company Amer Sports Corporation had 52 employees (53) at years end and an average of 55 (51) during the year. Dec. 31, Dec. 31, 2006 2005 Salomon 2,372 2,607 Wilson 1,919 1,914 Precor 795 733 Atomic 893 833 Suunto 522 527 Headquarters 52 53 Total 6,553 6,667 At the end of the year, 1,957 of the Group's employees worked in the United States, 1,260 in France, 712 in Austria, 608 in Canada, 393 in Finland and 1,623 in other countries. Dec. 31, Dec. 31, 2006 2005 EMEA 3,346 3,504 Americas 2,702 2,688 Asia Pacific 505 475 Total 6,553 6,667 AMER SPORTS SHARES AND SHAREHOLDERS At the close of the financial year, Amer Sports had 14,351 registered shareholders. Non-Finnish nations owned 56.0% (54.7%) of the shares. During the 2006 calendar year, a total of 66.3 million Amer Sports shares were traded on the Helsinki Stock Exchange to a total value of EUR 1,115.2 million. The share turnover was 92.6%. At the turn of the year, 372,886 ADRs were in circulation. At the close of the year on the Helsinki Stock Exchange, the last trade in Amer Sports Corporation shares was completed at a price of EUR 16.68, representing an increase of 6% during the year. The high for the year on the Helsinki Stock Exchange was EUR 19.00 and the low EUR 14.75. The average share price was EUR 16.83. At years end, the Company had a market capitalization of EUR 1,195.9 million (1,124.2). On January 27, 2006, Franklin Resources Inc. announced that the total number of shares held by the funds and individual investors under its control represented 5.02% of Amer Sports Corporations share capital and votes. In March, Franklin Resources Inc. announced that its shareholding had declined to 4.99%. On December 31, 2006, the Companys registered share capital totaled EUR 286,790,496 and the total number of shares was 71,697,624. 2002 warrant scheme The highest price of the 2002 warrants on the Helsinki Stock Exchange was EUR 24.99 and the lowest EUR 13.00. In 2006, a total of 0.2 million warrants were traded at a total price of EUR 3.9 million. 15,450 new shares were subscribed for with the 2002 warrants in May-June, 28,950 in June-July, 96,750 in August-September, 20,700 in October and 49,170 in October-November. The increases in share capital were entered in the Trade Register as follows: EUR 61,800 on July 13, EUR 115,800 on September 7, EUR 387,000 on October 19, EUR 82,800 on November 24, and EUR 196,680 on December 19. As a result of the subscriptions, the share capital rose by EUR 0.8 million. In addition, 358,380 shares were subscribed for in November and 28,500 in December. The increases in share capital were entered in the Trade Register as follows: EUR 1,433,520 on January 16, 2007, and EUR 114,000 on February 8, 2007. 2003 warrant scheme The highest price of the 2003 warrants on the Helsinki Stock Exchange was EUR 20.99 and the lowest EUR 10.99. In 2006, a total of 0.03 million warrants were traded at a total price of EUR 0.4 million. In October, 1,494 shares were subscribed for with the 2003 warrants. The increase in share capital EUR 5,976 was entered in the Trade Register on December 19. 2004 warrant scheme The warrants of the 2004 warrant scheme for Amer Sports Corporations key employees were made available for trading on the Main List of the Helsinki Stock Exchange as of January 2, 2007. There are a total of 361,650 warrants. Each warrant entitles its bearer to subscribe for three Amer Sports Corporation shares. The subscription price with the warrants is EUR 13.53 per share. The share subscription period with the warrants began on January 1, 2007 and ends on December 31, 2009. A maximum total of 1,084,950 shares can be subscribed for with the warrants and the share capital can be raised by a maximum of EUR 4,339,800. At the end of the report year, the Board of Directors had no outstanding authorizations to issue shares. PARENT COMPANYS BOARD OF DIRECTORS AND AUDITOR In accordance with the Nomination Committee's proposal, the Annual General Meeting held on March 15, 2006, confirmed that the number of Amer Sports Corporations Board members shall be six. Felix Björklund, Ilkka Brotherus, Tuomo Lähdesmäki, Timo Maasilta, Anssi Vanjoki and Roger Talermo (President and CEO) were re-elected as members of the Board of Directors until the end of the 2007 AGM. At its first meeting immediately following the AGM, the Board of Directors elected Anssi Vanjoki as Chairman and Ilkka Brotherus as Vice Chairman. Anssi Vanjoki (Chairman of the Committee), Felix Björklund and Tuomo Lähdesmäki were elected as members of the Remuneration Committee. Ilkka Brotherus (Chairman of the Committee), Timo Maasilta and Felix Björklund were elected as members of the Nomination Committee. Tuomo Lähdesmäki (Chairman of the Committee), Ilkka Brotherus and Timo Maasilta were elected as members of the Audit Committee. The AGM elected Authorized Public Accountants PricewaterhouseCoopers Oy to act as the auditor of the Company. The auditor in charge of the audit is Mr Göran Lindell, Authorized Public Accountant. EVENTS FOLLOWING THE YEAR END On January 16, 2007, 358,380 Amer Sports Corporation shares were subscribed for with warrants from 2002. The resulting increase in share capital EUR 1,433,520 was entered in the Trade Register on January 16, 2007. Following the increase, the share capital amounted to EUR 288,224,016 and the total number of shares to 72,056,004. As required under Section 9, Chapter 2 of the Finnish Securities Market Act, Franklin Resources Inc. announced on January 30, 2007, that the total number of shares held by funds and individual investors under its control represented 5.09% of Amer Sports Corporations share capital and votes. OUTLOOK FOR THE FUTURE AND GUIDANCE Most product groups and markets for sports equipment experienced growth in 2006. Following a solid year, it seems that the growth in the sports equipment industry will level off in 2007. The outlook for winter sports is weakened by the warm early winter in key markets. Amer Sports net sales growth in local currencies is expected to remain at last year's level in 2007 due to the weaker outlook for winter sports. The best sales growth is anticipated from Suunto, Salomon Apparel and Footwear, and Precor. Sales of Salomon winter sports equipment and Atomic sales are expected to decline slightly. Wilsons Racquet Sports and Team Sports are forecast to keep growing steadily, while the primary objective in the Golf Division is to improve profitability. Amer Sports earnings are expected to improve in 2007 thanks to factors such as Salomons turnaround initiative in 2006 and the industrial co-operation between Atomic and Salomon. It is estimated that Amer Sports EBIT will amount to EUR 130-145 million in 2007, with earnings per share coming in at EUR 1.10- 1.25. Cash flow from operating activities is expected to improve substantially. Earnings improvements can be expected from Q3 2007 onwards. It is estimated that Amer Sports Q1 2007 result will fall short of the previous years figure. The primary reason behind this is the below-normal amount of re-orders received for winter sports equipment in early 2007. PROPOSED DIVIDEND Amer Sports seeks to be viewed as a competitive investment that increases shareholder value through a combination of dividends and share price performance. The Company therefore pursues a progressive dividend policy reflecting its results, with the objective of distributing a dividend of at least one third of annual net profits. The parent company's unrestricted shareholders' equity amounts to EUR 266,484,503.73 of which net result for the period is EUR 14,953,339.67. The Board of Directors proposes to the Annual General Meeting that the distributable earnings be used as follows: - A dividend of EUR 0.50 per share, totaling EUR 36,042,252.00, to be paid to shareholders - EUR 230,442,251.73 to be carried forward in unrestricted shareholders' equity Totaling EUR 266,484,503.73 There have been no significant changes to the company's financial position since the close of the financial period. The company's financial standing is good and the proposed dividend distribution does not endanger the company's financial standing, according to the Board of Directors. The figures presented in this stock exchange release are based on the Group's audited financial statements, which has been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU. CONSOLIDATED RESULTS EUR million. 1-12/ Pro Chang 10-12/ Pro Change 2006 Forma e 2006 Forma % 1-12/ % 10-12/ 2005 2005 NET SALES 1,792.7 1,732.0 4 581.6 558.5 4 Cost of goods - -1,047.6 -361.2 -343.1 sold 1,095.3 GROSS PROFIT 697.4 684.4 2 220.4 215.4 2 License income 22.4 19.8 6.8 5.7 Other operating 7.2 1.5 2.2 income 11.1 R&D expenses -58.5 -58.6 -16.6 -16.8 Selling and -416.5 -111.2 -106.2 marketing -410.9 expenses Administrative -131.8 -31.2 -32.5 and other -128.7 expenses EARNINGS BEFORE 3 3 INTEREST AND 120.2 117.1 69.7 67.8 TAXES % of net sales 6.7 6.8 12.0 12.1 Financing income -23.6 -5.3 -6.6 and expenses -24.0 EARNINGS BEFORE 96.6 93.1 4 64.4 61.2 5 TAXES Taxes -26.1 -30.7 -17.4 -20.4 NET RESULT 70.5 62.4 13 47.0 40.8 15 Attributable to: Equity holders of 70.3 62.2 47.0 40.9 the parent company Minority 0.2 0.2 0.0 -0.1 interests Earnings per 0.98 0.65 0.57 share, EUR 0.87 Earnings per 0.97 0.86 0.65 0.57 share, diluted, EUR Adjusted average 71.5 71.4 number of shares in issue, million Adjusted average 72.4 72.0 number of shares in issue, diluted, million Average rates 1.26 1.24 used: EUR 1.00 = USD CONSOLIDATED RESULTS, COMPARED TO REPORTED LAST YEAR 1- 1- Change 10- 10-12/ Change 12/ 12/ % 12 2005 % 2006 2005 /2006 NET SALES 1,792. 1,363. 31 581.6 558.5 4 7 7 Cost of goods sold - -817.1 -361.2 -341.6 1,095. 3 GROSS PROFIT 697.4 546.6 28 220.4 216.9 2 License income 22.4 16.2 6.8 5.7 Other operating 7.2 10.4 1.5 2.2 income R&D expenses -58.5 -39.4 -16.6 -16.7 Selling and -416.5 -302.6 -111.2 -106.2 marketing expenses Administrative and -131.8 -31.2 -34.1 other expenses -94.3 Non-recurring items - - related to the -54.6 Salomon acquisition -54.6 EARNINGS BEFORE 46 INTEREST AND TAXES 120.2 82.3 69.7 13.2 % of net sales 6.7 6.0 12.0 2.4 Financing income -23.6 -5.3 -5.4 and expenses -9.0 EARNINGS BEFORE 96.6 73.3 32 64.4 7.8 TAXES Taxes -26.1 2.1 -17.4 22.7 NET RESULT 70.5 75.4 -6 47.0 30.5 54 Attributable to: Equity holders of 70.3 75.2 47.2 30.9 the parent company Minority interests 0.2 0.2 0.0 -0.1 Earnings per share, 0.98 1.05 0.65 0.42 EUR Earnings per share, 0.97 1.04 0.65 diluted, EUR 0.42 Equity per share, 7.71 7.46 EUR ROCE, % *) 12.0 11.3 ROE, % 12.9 15.1 *) 12 months rolling average NET SALES BY BUSINESS SEGMENTS 1-12/ Pro Change 10-12/ Change 2006 Forma % 2006 Pro % 1-12/ Forma 2005 10-12/ 2005 Salomon 661.4 623.5 6 282.1 255.2 11 Wilson 569.6 570.4 0 111.5 119.7 -7 Precor 275.6 252.1 9 83.0 80.7 3 Atomic 204.8 214.0 -4 82.2 85.9 -4 Suunto 81.3 72.0 13 22.8 17.0 34 Net sales, total 1,792. 1,732. 4 581.6 558.5 4 7 0 EBIT BY BUSINESS SEGMENTS 1-12/ Change 10-12/ Pro Change 2006 Pro % 2006 Forma % Forma 10-12/ 1-12/ 2005 2005 Salomon 23.6 18.1 30 40.3 37.9 6 Wilson 54.6 52.1 5 5.2 2.9 79 Precor 34.8 31.1 12 12.7 13.6 -7 Atomic 16.6 22.2 -25 14.8 19.0 -22 Suunto 7.0 3.4 106 1.2 -0.7 Headquarters -16.4 -9.8 -67 -4.5 -4.9 8 EBIT, total 120.2 117.1 3 69.7 67.8 3 GEOGRAPHIC BREAKDOWN OF NET SALES 1-12/ Pro Change 10-12/ Pro Change 2006 Forma % 2006 Forma % 1-12/ 10-12/ 2005 2005 Americas 815.7 783.3 4 207.1 208.2 -1 EMEA 781.8 758.3 3 306.8 279.5 10 Asia Pacific 195.2 190.4 3 67.7 70.8 -4 Total 1,792. 1,732. 4 581.6 558.5 4 7 0 CONSOLIDATED CASH FLOW STATEMENT 1-12/ 1-12/ 2006 2005 Cash flow from operating 45.5 96.4 activities Cash flow from investing -71.9 -471.6 activities Cash flow from financing activities Dividends paid -35.9 -36.0 Issue of shares 6.5 0.7 Change in net debt 54.1 441.3 Change in liquid funds -1.7 30.8 Liquid funds at year beginning 47.2 17.9 Liquid funds at year end 45.5 48.7 CONSOLIDATED BALANCE SHEET 31 Dec 31 Dec Assets 2006 2005 Goodwill 290.3 311.7 Other intangible non-current 209.9 217.1 assets Tangible non-current assets 118.8 113.4 Other non-current assets 55.5 58.7 Inventories and work in progress 290.4 301.6 Receivables 647.1 635.1 Cash and cash equivalents 45.5 48.7 Assets 1,657.5 1,686.3 Shareholders equity and liabilities Shareholders equity 556.1 536.2 Long-term interest-bearing 243.9 256.2 liabilities Other long-term liabilities 18.7 18.0 Current interest-bearing 387.0 393.5 liabilities Other current liabilities 382.4 378.3 Provisions 69.4 104.1 Shareholders equity and 1,657.5 1,686.3 liabilities Equity ratio, % 33.6 31.8 Gearing, % 105 112 EUR 1.00 = USD 1.32 1.18 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY Fair va- lue and ot- Re- Total Trans- her tai- Mino- share- Share Pre- latio re- ned rity hol- n capi- mium diffe- ser- ear- inte- ders' tal fund rence ves nings Total rest equit s y Balance at 285.7 0.8 -48.4 0.1 219.9 458.1 3.2 461.3 1 Jan 2005 Translatio 34.2 34.2 34.2 n difference s Cash flow -0.7 -0.7 -0.7 hedges Net income 34.2 -0.7 33.5 33.5 recognized directly in equity Net result 75.2 75.2 0.2 75.4 Total 34.2 -0.7 75.2 108.7 0.2 108.9 recognized income and expense for the period Dividend -36.0 -36.0 -36.0 distributi on Warrants 1.3 1.3 1.3 Warrants 0.2 0.5 0.7 0.7 exercised 0.2 0.5 -34.7 -34.0 -34.0 Balance at 285.9 1.3 -14.2 -0.6 260.4 532.8 3.4 536.2 31 Dec 2005 Translatio -27.3 -27.3 -27.3 n difference s Cash flow 4.8 4.8 4.8 hedges Net income -27.3 4.8 -22.5 -22.5 recognized directly in equity Net result 70.3 70.3 0.2 70.5 Total -27.3 4.8 70.3 47.8 0.2 48.0 recognized income and expense for the period Dividend distributi on Warrants 1.1 1.1 1.1 Warrants 0.9 5.6 6.5 6.5 exercised 0.9 5.6 -34.6 -28.1 - 28.1 Balance at 31 Dec 286.8 6.9 -41.5 4.2 296.1 552.5 3.6 556.1 2006 CONTINGENT LIABILITIES AND SECURED ASSETS, CONSOLIDATED 31 Dec 31 Dec 2006 2005 Charges on assets - 2.8 Mortgages pledged 3.5 4.6 Guarantees 4.3 7.1 Liabilities for leasing and 103.0 60.4 rental agreements Other liabilities 50.9 52.9 There are no guarantees of contingencies given for the management of the company, the shareholders or the associated companies. DERIVATIVE FINANCIAL INSTRUMENTS 31 Dec 31 Dec 2006 2005 Nominal value Foreign exchange forward 341.3 404.2 contracts Forward rate agreements 275.9 200.0 Interest rate swaps 225.9 277.2 Fair value Foreign exchange forward 4.3 -5.5 contracts Forward rate agreements 0.2 0.1 Interest rate swaps 5.7 -0.1 QUARTERLY BREAKDOWNS OF NET SALES AND EBIT Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2006 2006 2006 2006 2005 2005* 2005* 2005* ) ) ) NET SALES Salomon 282.1 179.6 76.4 123.3 255.2 189.4 71.7 107.2 Wilson 111.5 120.3 159.5 178.3 119.7 126.1 152.3 172.3 Precor 83.0 60.4 59.3 72.9 80.7 57.9 54.5 59.0 Atomic 82.2 93.3 5.6 23.7 85.9 93.8 7.8 26.5 Suunto 22.8 18.3 21.0 19.2 17.0 16.4 18.6 20.0 Net sales, 581.6 471.9 321.8 417.4 558.5 483.6 304.9 385.0 total Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2006 2006 2006 2006 2005* 2005* 2005* 2005* ) ) ) ) EBIT Salomon 40.3 23.6 -17.9 -22.4 37.9 28.0 -23.3 -24.5 Wilson 5.2 7.9 17.2 24.3 2.9 6.9 16.2 26.1 Precor 12.7 6.0 4.1 12.0 13.6 7.1 4.6 5.8 Atomic 14.8 23.4 -12.2 -9.4 19.0 23.7 -12.1 -8.4 Suunto 1.2 1.0 3.7 1.1 -0.7 0.9 1.5 1.7 Headquarte -4.5 -4.0 -3.9 -4.0 -4.9 -3.1 1.9 -3.7 rs EBIT, 69.7 57.9 -9.0 1.6 67.8 63.5 -11.2 -3.0 total *) Pro forma All forecasts and estimates presented in this report are based on managements current judgment of the economic environment and the actual results may be significantly different. AMER SPORTS CORPORATION Board of Directors For further information, please contact: Mr Tommy Ilmoni, Vice President, Investor Relations, tel.+358 9 7257 8233 Mr Pekka Paalanne, Senior Vice President & CFO, tel. +358 9 7257 8212 Mr Roger Talermo, President & CEO, tel. +358 9 7257 8210 AMER SPORTS CORPORATION Communications Maarit Mikkonen Communications Manager Tel. +358 9 7257 8306, e-mail: maarit.mikkonen@amersports.com www.amersports.com DISTRIBUTION Helsinki Stock Exchange Major media www.amersports.com