STOCK EXCHANGE RELEASE February 5, 2009 at 1:00 pm * Amer Sports Q4/08 net sales of EUR 495.3 million were at last year's level (497.1). In local currencies net sales decreased 3%. EBIT was EUR 35.2 million (11.0). Last year's results, however, include EUR 42.7 million restructuring costs. Earnings per share was EUR 0.25 (0.02). * Full-year 2008 net sales decreased 5% to EUR 1,576.6 million (1,652.0). In local currencies net sales were at last year's level. Earnings before interest and taxes (EBIT) were EUR 78.9 million (49.5), including a capital gain of 13.1 million euros from selling the company's corporate headquarters building in April. Earnings per share were EUR 0.47 (0.25). * The Amer Sports outlook is clearly more uncertain than normally at this time of year. The company's results in 2009 are anticipated to improve thanks to better cost efficiency in the Winter Sports Equipment business in particular. * The Amer Sports Board of Directors proposes that a dividend of EUR 0.16 be paid per share (0.50 per share for 2007). Q4/ Q4/ Change Change EUR million 2008 2007 % %*) 2008 2007 % %*) Net sales 495.3 497.1 0 -3 1,576.6 1,652.0 -5 -1 Gross profit 184.3 202.2 -9 633.0 664.4 -5 EBIT before non- recurring items 35.2 53.7 -34 78.9 92.2 -14 Non-recurring items - -42.7 - -42.7 EBIT 35.2 11.0 78.9 49.5 59 Financing income and expenses -11.3 -9.3 -22 -33.3 -24.9 -34 Earnings before taxes 23.9 1.7 45.6 24.6 85 Net result 17.7 1.3 34.0 18.5 84 Earnings per share, EUR 0.25 0.02 0.47 0.25 *) In local currency terms ROGER TALERMO, PRESIDENT AND CEO:"The last quarter of the year winter sports progressed due to product innovations and good snow conditions. Fitness market continued to be a challenge and Precor performed below expectations. Our Q4 EBIT of EUR 35 million is also burdened by one-time product recall costs from Mavic and Atomic of some EUR 6 million. Looking at the year as a whole, Group sales were at last year's level thanks to the continued success of our Apparel and Footwear business. Despite the several cost cutting measures we made during the year, these could not offset the drastic and rapid sales decline in our Fitness business. The absolute priority in 2009 will be on strengthening the balance sheet. We are ready to consider all necessary measures to achieve this. New programs have been started to significantly reduce working capital. These will bring results towards the end of the year. Furthermore, our capital expenditures will be lower than during the previous years. We are also continuing to cut expenses in most of our businesses in order to adjust our organization to the current market conditions. All in all, with our improving cash flow and other possible measures, I believe that our balance sheet will strengthen during the current year. Also the sporting goods sector is affected by the financial crisis. Even if sell-out from stores has remained on a relatively healthy level, many of our retail clients have taken a cautious approach and are destocking their inventories. In some cases again, our clients have been postponing their ordering due to the tight credit conditions in the financial markets. All in all, in the environment we are in, our outlook is more uncertain than normally. Our current view is, however, that our earnings in 2009 will improve thanks to the improved cost efficiency, in Winter Sports Equipment in particular." NET SALES AND EBIT IN OCTOBER - DECEMBER Amer Sports Q4 net sales were at least year's level, EUR 495.3 million (497.1). Net sales in local currency terms decreased 3%. Net sales by business segment were as follows: Winter and Outdoor 66% (Winter Sports Equipment 41%), Ball Sports 22% and Fitness 12%. Net sales increased in Winter and Outdoor 7% and in Ball Sports 3% whereas net sales decreased 31% in Fitness. In local currency terms, net sales in Winter and Outdoor increased 6% but decreased 2% in Ball Sports and 36% in Fitness. The geographical breakdown of net sales was as follows: EMEA (Europe, Middle East and Africa) 50%, the Americas (North, South and Central America) 36% and Asia Pacific (including Japan and Australia) 14%. Sales increased 7% in EMEA and 4% in Asia Pacific but decreased 10% in the Americas. In local currency terms, net sales increased 6% in EMEA and were at last year's level in Asia Pacific. In the Americas sales decreased 15%. The Group's earnings before interest and taxes (EBIT) were EUR 35.2 million (11.0). The results are burdened by one-time product recall costs of Mavic and Atomic of EUR 6 million. Last year's results include EUR 42.7 million restructuring costs. Excluding both of these items the results weakened by 23% due to weaker profitability in both Fitness and Ball Sports. Earnings before taxes were EUR 23.9 million (1.7). Earnings per share was EUR 0.25 (0.02). Net financial expenses amounted to EUR 11.3 million (9.3). NET SALES AND EBIT IN THE REVIEW PERIOD, JANUARY-DECEMBER Amer Sports net sales decreased 5% to EUR 1,576.6 million (1,652.0). In local currencies net sales were at last year's level. Net sales by business segment were as follows: Winter and Outdoor 55% (Winter Sports Equipment 25%), Ball Sports 31% and Fitness 14%. Winter and Outdoor sales increased 4%, Ball Sports sales decreased 7%, and Fitness decreased 24%. In local currency terms, Winter and Outdoor net sales increased 5%, Ball Sports were at last year's level and Fitness decreased 20%. The split of net sales by geographical segment was as follows: EMEA 46%, the Americas 43% and Asia Pacific 11%. Sales in EMEA increased 3% and in Asia Pacific 2% but declined 12% in the Americas. In local currency terms, net sales increased 4% in EMEA, were at last year's level in Asia Pacific, and decreased 7% in the Americas. EBIT was EUR 78.9 million, compared with EUR 49.5 million in 2007. However, excluding the EUR 42.7 million restructuring costs in 2007 and excluding the capital gain of EUR 13.1 million in 2008, EBIT was 65.8 in 2008 compared with EUR 92.2 million in 2007. The main reason for the weakened profitability is the substantial sales drop in the Fitness business. Earnings before taxes were EUR 45.6 million (24.6). Earnings per share were EUR 0.47 (0.25). Net financial expenses amounted to EUR 33.3 million (24.9). Last year's corresponding figure was reduced by realized interest rate swaps, which resulted in a gain of EUR 6.4 million. Taxes for the period were EUR 11.6 million (6.1). The Group's tax rate was 25% (25%). CAPITAL EXPENDITURE The Group's capital expenditure on fixed assets totaled EUR 43.1 million (58.3). The Group's depreciation was EUR 38.2 million (33.9). RESEARCH AND DEVELOPMENT EUR 55.6 million (57.7) was invested in research and development, representing 3.5% of net sales. FINANCIAL POSITION AND CASH FLOW Amer Sports interest bearing liabilities at the end of December were EUR 687.7 million (656.2), consisting of short-term debt of EUR 507.8 million and long-term debt of EUR 179.9 million. Liquid assets amounted to EUR 72.1 million (68.0) at the end of the period. The Group's net debt was EUR 615.6 million (588.2). In 2007, Amer Sports issued two private placement bonds for Finnish institutional investors. The total amount of the bonds, maturing in 2009 and 2011, is EUR 150 million. Besides the bond maturing in 2011, the long-term debt consists of a USD 100 million term loan as a part of the originally EUR 575 million loan syndicate of 2005, maturing in 2011 and 2012, and a EUR 31.4 million pension loan. For short-term financing, Amer Sports has a EUR 325 million committed revolving credit facility, maturing in 2011 and 2012, of which EUR 255 million has been used. Furthermore, the company has, as of January 1, 2009, new committed revolving credit facilities of EUR 60 million maturing in 2010. Short-term financing is also raised with a domestic commercial paper program, of which EUR 113 million had been used at the end of December. The equity ratio at the end of December was 30.6% (31.0%) and gearing was 121% (115%). Net cash flow from operating activities after interest and taxes was EUR 10.5 million (58.1). Net cash flow from investing activities was EUR -14.6 million (-51.6), including proceeds of EUR 23 million from selling the company's corporate headquarters building. BUSINESS SEGMENTS WINTER AND OUTDOOR Q4/ Q4/ Change Change EUR million 2008 2007 % %*) 2008 2007 % %*) Net sales Winter Sports Equipment 202.7 188.7 7 5 391.9 394.2 -1 0 Apparel and Footwear 67.9 60.2 13 17 264.9 229.4 15 19 Cycling 31.3 30.4 3 1 114.2 114.1 0 1 Sports Instruments 24.7 25.3 -2 -3 89.8 90.7 -1 1 Discontinued operations - 0.3 - - - 1.7 - - Net sales, total 326.6 304.9 7 6 860.8 830.1 4 5 EBIT 36.7 35.2 4 5 41.1 20.9 97 - *) In local currency terms In 2008, net sales increased 5% in local currency terms. The breakdown of net sales was as follows: Winter Sports Equipment 46%, Apparel and Footwear 31%, Cycling 13% and Sports Instruments 10%. EMEA accounted for 65%, the Americas for 23%, and Asia Pacific for 12% of net sales. Sales in local currencies were up 11% in Asia Pacific, 4% in EMEA, and 4% in the Americas. In 2008, EBIT increased to EUR 41.1 million (20.9). The improvement reflects the restructuring of the winter sports equipment business and the strong growth in sales of apparel and footwear. In Q4, EBIT was EUR 36.7 million (35.2) driven by a healthy 6% sales growth in local currencies. The reported results in Q4 include costs of approximately EUR 6 million for voluntary product recalls of both Mavic R-SYS front wheels and heel components of certain Atomic ski bindings. Business areas The recovery of the winter sports equipment business was slower than expected in 2008 despite favorable weather conditions. Alpine Europe as a region and alpine boots as a product category grew in high single digits, but continued weakness in the US and the Nordic skiing markets depressed global sales. Retailers' attempts to reduce their own inventories decreased the amount of re-orders. Atomic started a voluntary recall of the heel components of certain ski bindings. Winter Sports Equipment net sales of EUR 391.9 million were at last year's level in local currency terms. In January 2008 Amer Sports announced a plan to restructure the Winter Sports business, as a result of which four production sites and approximately 400 jobs were reduced worldwide. The plan was carried out according to targets, and the savings of more than EUR 20 million will be visible in 2009. The cost cuts already helped to improve the profitability of the business area in 2008. Favorable development of Salomon and Arc'teryx apparel and Salomon footwear sales continued in all key markets. The outdoor trend remained solid, and trail running as a category continued to gain popularity. Net sales in Apparel and Footwear increased 19% in local currency terms to EUR 264.9 million. Bicycle component manufacturer Mavic's net sales remained flat in local currency terms at EUR 114.2 million. Growth opportunities were impacted by supply chain issues. At the end of the year, Mavic announced a voluntary recall of its R-SYS front wheels. Net sales of Sports Instruments were at last year's level in local currency terms. However, sales in 2008 do not include Ursuk, which was divested beginning of the year. The wristop category continued its growth with a 20% increase compared to 2007, driven by continued new product launches as well as sales channel extensions. The market for diving equipment declined in 2008 as a result of the economic environment, and Suunto followed the overall market trend. Winter and Outdoor outlook 2009 Despite an expected slowdown in retail sales, the profitability of Winter and Outdoor segment is expected to improve in 2009 due to the positive impacts of the changes in the winter sports equipment business that were completed during 2008. In the apparel and footwear business, the strong order book and good sell-through of products should allow it to grow faster than its peers in the industry. The outlook for Mavic in 2009 is cautious, reflecting the uncertainty of bike manufacturers. Suunto's sales are expected to grow, thanks to new channel entry and new product introductions. BALL SPORTS Q4/ Q4/ Change Change EUR million 2008 2007 % %*) 2008 2007 % %*) Net sales Racquet Sports 45.1 44.1 2 -1 227.0 236.0 -4 1 Team Sports 52.8 47.4 11 3 189.9 195.5 -3 3 Golf 12.1 15.5 -22 -22 78.6 99.4 -21 -15 Net sales, total 110.0 107.0 3 -2 495.5 530.9 -7 -1 EBIT 3.4 8.0 -58 -58 37.0 48.2 -23 -17 *) In local currency terms In 2008, net sales were on par with the previous year in local currency terms at EUR 495.5 million. The breakdown of net sales was as follows: Racquet Sports 46%, Team Sports 38% and Golf 16%. The Americas accounted for 64%, EMEA 24% and Asia Pacific 12% of net sales. Sales in local currencies were up 4% in EMEA and were at last year's level in the Americas and down 10% in Asia Pacific. The decrease in Asia Pacific was due to licensing the golf business in Japan. In 2008, EBIT decreased 23% to EUR 37.0 million. The EBIT shortfall reflects mainly the weakened economic environment. This impacted trading conditions in the US in particular and consequently resulted in lower than expected overall sales. In Q4, EBIT declined to EUR 3.4 million (8.0) even though sales were close to the previous year's level. The weakened profitability reflects mainly inventory adjustments and low margin sales in the Team Sports business. Business areas Racquet Sports net sales of EUR 227.0 million were at last year's level in local currency terms. During the year, two key strategic initiatives were executed to drive future growth by establishing a Chinese infrastructure and implementing an in-house tennis apparel strategy. Racquet Sports maintained a leadership position in the marketplace with [K] Factor rackets and a strong presence on tour. Team Sports net sales increased 3% in local currencies to EUR 189.9 million. The key growth areas were bats 15%, soccer 12% and basketballs 8%. Regional team sports strategies have been implemented to expand market share in Latin American soccer, European basketball and Asian baseball. Golf net sales declined 15% in local currencies to EUR 78.6 million. The decline reflects mainly the decision to license the golf business in Japan and exit underperforming business areas. The golf market remained competitive. Retail distribution continued to consolidate and private label brands became more prevalent. Wilson gained momentum in the premium club category with a focused iron strategy. Ball Sports outlook 2009 Sales and profitability are expected to remain at the previous year's level. The Racquet and Team Sports businesses will maintain their leadership positions. Golf will continue to improve its performance. However, economic development in North America, in particular, remains a factor of uncertainty in the outlook. FITNESS Q4/ Q4/ Change Change EUR million 2008 2007 % %*) 2008 2007 % %*) Net sales 58.7 85.2 -31 -36 220.3 291.0 -24 -20 EBIT -2.3 13.0 - - 3.8 37.2 -90 -89 *) In local currency terms In 2008, Precor's net sales declined 20% in local currencies to EUR 220.3 million. The Americas accounted for 72%, EMEA for 21%, and Asia Pacific for 7% of net sales. In local currency terms, sales were up 3% in EMEA and down 19% in Asia Pacific and 25% in the Americas. In 2008, EBIT decreased to EUR 3.8 million (37.2) due to the significant fall in sales and lower gross margins resulting from a lower capacity utilization rate as well as increased raw material costs. In Q4, EBIT was EUR -2.3 million (13.0). The weakened profitability reflects the significant fall in sales. Consumer products sales have been greatly impacted by significantly lower consumer spending due to the uncertain economic environment. Consumer sales are affected by both the overall withdrawal from discretionary spending by many households and by a significant reduction in the number of specialty dealers compared to the prior year. Demand for commercial equipment remained healthy until the late fall, after which the tight credit market made it more difficult for small customers to finance equipment investments. Furthermore, customers became concerned about the general economic outlook and consequently postponed their buying decisions. During Q4 Precor implemented two rounds of layoffs. The total number of eliminated positions was 41 and those positions are spread across all departments in the company. Fitness outlook 2009 Due to the globally weak macro-economic environment, the short-term outlook for Precor remains uncertain. Many customers are impacted by the tight credit market and are postponing their investments in new fitness equipment. The long-term fundamental drivers of the fitness market remain positive and Precor is well-positioned for a rapid recovery as the broader economy begins to improve. Precor is focused on strengthening retail distribution in the US and geographical expansion. ACQUIRING THE ASSETS OF BULGARIAN SKI SUPPLIER In order to ensure its cost leadership in ski manufacturing, Amer Sports acquired in September, 2008 all the ski manufacturing assets of its long-term Bulgarian supplier, Pamporovo Ski, and as a result has assumed full control of its operations. The price for all the acquired assets was approximately EUR 5 million. The assets of Pamporovo Ski were transferred to Amer Sports in November. Pamporovo's 330 employees will continue with the newly established Amer Sports Bulgaria AOOD. SELLING OF HEADQUARTERS BUILDING Amer Sports Corporation sold its corporate headquarters building on April, 2008, located at Mäkelänkatu 91, to Catella Real Estate AG for EUR 23 million. Amer Sports booked a capital gain of EUR 13 million in its second quarter result. The company will remain in the building as its primary tenant. PERSONNEL At the end of the year, the Group employed 6,338 people (6,465). The Group employed an average of 6,285 people (6,582) during the review period. +------------------------------------------------------------+ | | December 31, | December 31, | Change, | | | 2008 | 2007 | % | |--------------------+--------------+--------------+---------| | Winter and Outdoor | 3,777 | 3,701 | 2 | |--------------------+--------------+--------------+---------| | Ball Sports | 1,731 | 1,891 | -8 | |--------------------+--------------+--------------+---------| | Fitness | 765 | 815 | -6 | |--------------------+--------------+--------------+---------| | Headquarters | 65 | 58 | 12 | |--------------------+--------------+--------------+---------| | Total | 6,338 | 6,465 | -2 | +------------------------------------------------------------+ +------------------------------------------------------+ | | December 31, | December 31, | Change, | | | 2008 | 2007 | % | |--------------+--------------+--------------+---------| | EMEA | 3,428 | 3,330 | 3 | |--------------+--------------+--------------+---------| | Americas | 2,337 | 2,557 | -9 | |--------------+--------------+--------------+---------| | Asia Pacific | 573 | 578 | -1 | |--------------+--------------+--------------+---------| | Total | 6,338 | 6,465 | -2 | +------------------------------------------------------+ Mr Vincent Wauters was named Amer Sports Senior Vice President, Supply Chain and Information Technology on May 28, 2008. Wauters joined Amer Sports on September 1, 2008. He reports to Mr Roger Talermo, Amer Sports President and CEO and is a member of the Executive Board. Mr Max Alfthan, Amer Sports Corporation's Senior Vice President of Communications and an Executive Board member, accepted a position outside Amer Sports in August, 2008. SHARES AND SHAREHOLDERS At the end of the year Amer Sports had 12,320 registered shareholders (12,280). Nominee registered represented 42.6% (47.3%) of the shares. During the period, a total of 101.3 million Amer Sports shares were traded on the Helsinki Stock Exchange to a total value of EUR 1,172.5 million. The share turnover was 139.6% (of the average number of shares excluding own shares). At the close of the review period, the last trade in Amer Sports Corporation shares was EUR 5.36. The high for the period on the Helsinki Stock Exchange was EUR 19.00 and the low EUR 4.90. The average share price was EUR 11.58. On December 31, 2008, the company had a market capitalization of EUR 389.7 million excluding own shares. The company has 340,900 own shares. The number of own shares corresponds to 0.5% of all Amer Sports shares. Amer Sports Corporation transferred 104,100 shares held by the company gratuitously to the Group's key personnel belonging to its share-based incentive plan. The transfer date of the shares was September 1, 2008. Exercise of warrants and increases in share capital Amer Sports Corporation warrants were registered as follows: Warrant Increase in share capital, Increase in share capital, shares EUR 2002 649,113 2,596,452 2003 26,100 104,400 2004 44,793 179,172 Shareholder rights commenced from the registration date February 13, 2008. The new shares were listed on the Helsinki Exchanges on February 14, 2008. The highest price of the 2003 warrants on the OMX Helsinki Stock Exchange was EUR 6.50 and the lowest EUR 0.05. In 2008, a total of 5,679 warrants were traded at a total price of EUR 21,789. The highest price of the 2004 warrants on the OMX Helsinki Stock Exchange was EUR 14.00 and the lowest EUR 1.25. In 2008, a total of 18,236 warrants were traded at a total price of EUR 102,226. Major changes in holdings, October - December 2008 On November 24, 2008 Amer Sports Corporation received information to the effect that the Danske Bank A/S Helsinki Branch's share capital and voting rights of Amer Sports were still over one-twentieth (1/20) due to derivative contract transaction agreements which were completed on November 24, 2008. The Danske Bank A/S Helsinki Branch completed derivative contract transaction agreements on November 24, 2008 that will, according to their current schemes, mature in December 2008. If materialized, the ownership of Danske Bank A/S's Helsinki Branch will fall under one-twentieth (1/20) no earlier than December 29, 2008. On November 24, 2008, the Danske Bank A/S Helsinki Branch owned 7,000,000 shares, which represented 9.58% of the company's share capital and voting rights. On December 22, 2008 Amer Sports Corporation received information to the effect that Governance for Owners Llp's share capital and voting rights of Amer Sports reached one-twentieth (1/20) on December 18, 2008. On that day Governance for Owners owned 3,672,458 shares, which represented 5.03% of the Amer Sports' share capital and voting rights. On December 31, 2008, the company's registered share capital was EUR 292,182,204 and the total number of shares was 73,045,551. The stock exchange announcements on major changes in shareholdings during first three quarters of the review period can be found at Amer Sports web pages, www.amersports.com/investors. BOARD OF DIRECTORS AND AUDITOR Amer Sports Annual General Meeting was held on March 5, 2008. On the same day Novator Finland Oy demanded that an Extraordinary General Meeting of Amer Sports Corporation to be convened as soon as possible to elect a new Board of Directors for the company and to replace the members of the Board of Directors elected. At the Amer Sports Corporation Extraordinary General Meeting held on June 4, 2008, the following resolutions were approved: The company's previous board members were released from their positions and a new Board of Directors were elected. Felix Björklund, Ilkka Brotherus, Anssi Vanjoki and Pirjo Väliaho were re-elected as members of the Board of Directors. Martin Burkhalter, Christian Fischer and Bruno Sälzer were appointed as new board members. The Board's term of service will run until the 2009 Annual General Meeting. At its organizing meeting immediately following the Extraordinary General Meeting, the Board of Directors unanimously appointed Anssi Vanjoki as Chairman and Ilkka Brotherus as Vice Chairman. Pirjo Väliaho (Chairman of the Committee), Anssi Vanjoki, Bruno Sälzer and Christian Fischer were elected as members of the Compensation Committee. Ilkka Brotherus (Chairman of the Committee), Anssi Vanjoki and Felix Björklund were elected as members of the Nomination Committee. Felix Björklund (Chairman of the Committee), Ilkka Brotherus and Martin Burkhalter were elected as members of the Audit Committee. The Authorized Public Accountant PricewaterhouseCoopers Oy was elected to act as an auditor of the company. The auditor in charge of the audit is Mr Jouko Malinen, Authorized Public Accountant. It was decided that the auditor's fee will be paid as invoiced. BUSINESS RISKS AND UNCERTAINTY FACTORS Amer Sports Corporation's short-term risks are particularly associated with consumer demand in North America and Europe. Further information on the company's business risks and uncertainty factors is available at the company's web site at www.amersports.com/investors. OUTLOOK FOR 2009 The Amer Sports outlook is clearly more uncertain than normally at this time of year. The company's results in 2009 are anticipated to improve thanks to a better cost efficiency in the Winter Sports Equipment business in particular. 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 285,709,814.15, of which net result for the period is EUR 91,602,197.38. The Board of Directors proposes to the Annual General Meeting that the distributable earnings be used as follows: - A dividend of EUR 0.16 per share, totaling EUR 11,687,288.16 to be paid to shareholders - EUR 274,022,525.99 to be carried forward in unrestricted shareholders' equity Totaling EUR 285,709,814.15 No dividend will be paid to treasury shares held by the company. There have been no significant changes to the company's financial position since the close of the financial period. According to the Board of Directors, the proposed dividend distribution does not endanger the company's financial standing. TABLES 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 1-12/ 1-12/ Change Q4/ Q4/ Change 2008 2007 % 2008 2007 % NET SALES 1,576.6 1,652.0 -5 495.3 497.1 0 Cost of goods sold -943.6 -987.6 -311.0 -294.9 GROSS PROFIT 633.0 664.4 -5 184.3 202.2 -9 License income 14.3 18.0 4.1 4.9 Other operating income 18.9 7.9 3.2 6.2 R&D expenses -55.6 -57.7 -16.0 -15.8 Selling and marketing expenses -406.2 -407.6 -112.6 -106.7 Administrative and other expenses -125.5 -132.8 -27.8 -37.1 Non-recurring expenses related to the reorganization of Winter Sports Equipment business area - -42.7 - -42.7 EARNINGS BEFORE INTEREST AND TAXES 78.9 49.5 59 35.2 11.0 % of net sales 5.0 3.0 7.1 2.2 Financing income and expenses -33.3 -24.9 -11.3 -9.3 EARNINGS BEFORE TAXES 45.6 24.6 85 23.9 1.7 Taxes -11.6 -6.1 -6.2 -0.4 NET RESULT 34.0 18.5 84 17.7 1.3 Attributable to: Equity holders of the parent company 33.9 18.1 17.7 1.2 Minority interests 0.1 0.4 0.0 0.1 Earnings per share, EUR 0.47 0.25 0.25 0.02 Earnings per share, diluted, EUR 0.47 0.25 0.25 0.02 Adjusted average number of shares in issue less own shares, million 72.5 72.0 Adjusted average number of shares in issue less own shares, diluted, million 72.5 73.0 Equity per share, EUR 6.95 7.04 ROCE, % *) 7.9 4.8 ROE, % 6.7 3.5 Average rates used: EUR 1.00 = USD 1.47 1.37 *) 12 months' rolling average NET SALES BY BUSINESS SEGMENT 1-12/ 1-12/ Change Q4/ Q4/ Change 2008 2007 % 2008 2007 % Winter and Outdoor 860.8 830.1 4 326.6 304.9 7 Ball Sports 495.5 530.9 -7 110.0 107.0 3 Fitness 220.3 291.0 -24 58.7 85.2 -31 Total 1,576.6 1,652.0 -5 495.3 497.1 0 EBIT BY BUSINESS SEGMENT 1-12/ 1-12/ Change Q4/ Q4/ Change 2008 2007 % 2008 2007 % Winter and Outdoor 41.1 20.9 97 36.7 35.2 4 Ball Sports 37.0 48.2 -23 3.4 8.0 -58 Fitness 3.8 37.2 -90 -2.3 13.0 Headquarters -3.0 -14.1 79 -2.6 -2.5 -4 78.9 92.2 -14 35.2 53.7 -34 Non-recurring expenses related to the reorganization of Winter Sports Equipment business area - -42.7 - -42.7 Total 78.9 49.5 59 35.2 11.0 GEOGRAPHIC BREAKDOWN OF NET SALES 1-12/ 1-12/ Change Q4/ Q4/ Change 2008 2007 % 2008 2007 % Americas 677.8 774.1 -12 178.8 198.9 -10 EMEA 723.0 704.9 3 249.5 233.9 7 Asia Pacific 175.8 173.0 2 67.0 64.3 4 Total 1,576.6 1,652.0 -5 495.3 497.1 0 CONSOLIDATED CASH FLOW STATEMENT 1-12/2008 1-12/2007 EBIT 78.9 49.5 Depreciation and adjustments to cash flow from operating activities 20.6 30.5 Change in working capital -42.6 26.3 Cash flow from operating activities before financing items and taxes 56.9 106.3 Interest paid and received -31.9 -21.7 Income taxes paid -14.5 -26.5 Cash flow from operating activities 10.5 58.1 Acquired operations -2.5 - Company divestments 3.6 - Capital expenditure on non-current tangible and intangible assets -43.1 -58.3 Proceeds from sale of tangible non-current assets 27.4 4.0 Proceeds from sale of available-for-sale investments - 1.7 Proceeds from non-current loan receivables - 1.0 Cash flow from investing activities -14.6 -51.6 Dividends paid -36.4 -36.2 Issue of shares - 10.6 Repurchases of own shares - -7.5 Change in net debt and other financial items 42.8 49.9 Cash flow from financing activities 6.4 16.8 Liquid funds at 1 Jan 68.0 45.5 Translation differences 1.8 -0.8 Change in liquid funds 2.3 23.3 Liquid funds at 31 Dec 72.1 68.0 CONSOLIDATED BALANCE SHEET 31 December, 31 December, 2008 2007 Assets Goodwill 279.3 270.9 Other intangible non-current assets 207.5 209.5 Tangible non-current assets 135.3 135.9 Other non-current assets 65.9 66.3 Inventories and work in progress 346.0 299.2 Receivables 555.8 594.7 Cash and cash equivalents 72.1 68.0 Assets 1,661.9 1,644.5 Shareholders' equity and liabilities Shareholders' equity 508.1 509.7 Long-term interest-bearing liabilities 179.9 218.6 Other long-term liabilities 22.0 18.7 Current interest-bearing liabilities 507.8 437.6 Other current liabilities 389.0 372.0 Provisions 55.1 87.9 Shareholders' equity and liabilities 1,661.9 1,644.5 Equity ratio, % 30.6 31.0 Gearing, % 121 115 EUR 1.00 = USD 1.39 1.47 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Fair value Fund Trans- and Retai- Mino- Total Pre- for lation other ned rity share- Share mium own diffe- reser- ear- inte- holders' capital fund shares rences ves nings Total rests equity Balance at 1 Jan 2007 286.8 6.9 -41.5 4.2 296.1 552.5 3.6 556.1 Translation differences -25.3 -25.3 -25.3 Cash flow hedges -6.9 -6.9 -6.9 Net income recognized directly in equity -25.3 -6.9 -32.2 -32.2 Net result 18.1 18.1 0.4 18.5 Total recognized income and expense for the period -25.3 -6.9 18.1 -14.1 0.4 -13.7 Repurchases of own shares -7.5 -7.5 -7.5 Dividend distribution -36.0 -36.0 -0.2 -36.2 Warrants 0.7 0.7 0.7 Warrants exercised 2.5 8.1 10.6 10.6 Other change in minority interest -0.3 -0.3 2.5 8.1 -7.5 -35.3 -32.2 -0.5 -32.7 Balance at 31 Dec 2007 289.3 15.0 -7.5 -66.8 -2.7 278.9 506.2 3.5 509.7 Balance at 1 Jan 2008 289.3 15.0 -7.5 -66.8 -2.7 278.9 506.2 3.5 509.7 Translation differences 4.3 4.3 4.3 Cash flow hedges -3.5 -3.5 -3.5 Net income recognized directly in equity 4.3 -3.5 0.8 0.8 Net result 33.9 33.9 0.1 34.0 Total recognized income and expense for the period 4.3 -3.5 33.9 34.7 0.1 34.8 Dividend distribution -36.3 -36.3 0.0 -36.3 Reissuance of own shares 1.8 1.8 1.8 Warrants -0.9 -0.9 -0.9 Warrants exercised 2.9 -2.9 0.0 0.0 Other change in minority interests 0.0 -1.0 -1.0 2.9 -2.9 1.8 0.0 0.0 -37.2 -35.4 -1.0 -36.4 Balance at 31 Dec 2008 292.2 12.1 -5.7 -62.5 -6.2 275.6 505.5 2.6 508.1 CONTINGENT LIABILITIES AND SECURED ASSETS, CONSOLIDATED 31 December, 31 December, 2008 2007 Mortgages pledged 0.0 2.8 Guarantees 8.5 4.5 Liabilities for leasing and rental agreements 106.6 105.7 Other liabilities 46.1 48.2 There are no guarantees of contingencies given for the management of the company, the shareholders or the associated companies. DERIVATIVE FINANCIAL INSTRUMENTS 31 December, 31 December, 2008 2007 Nominal value Foreign exchange forward contracts 604.3 417.1 Forward rate agreements 0.0 100.0 Interest rate swaps 221.9 217.9 Fair value Foreign exchange forward contracts -1.1 0.0 Forward rate agreements 0.0 0.0 Interest rate swaps -7.6 -1.6 QUARTERLY BREAKDOWNS OF NET SALES AND EBIT Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 NET SALES 2008 2008 2008 2008 2007 2007 2007 2007 Winter and Outdoor 326.6 267.6 104.6 162.0 304.9 280.6 100.2 144.4 Ball Sports 110.0 110.6 130.9 144.0 107.0 109.9 150.4 163.6 Fitness 58.7 55.0 49.6 57.0 85.2 72.3 59.7 73.8 Total 495.3 433.2 285.1 363.0 497.1 462.8 310.3 381.8 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 EBIT 2008 2008 2008 2008 2007 2007 2007 2007 Winter and Outdoor 36.7 45.7 -26.7 -14.6 35.2 48.9 -28.8 -34.4 Ball Sports 3.4 6.6 11.3 15.7 8.0 5.4 15.0 19.8 Fitness -2.3 2.8 -0.4 3.7 13.0 8.1 6.2 9.9 Headquarters -2.6 -3.6 8.0 -4.8 -2.5 -3.3 -5.2 -3.1 35.2 51.5 -7.8 0.0 53.7 59.1 -12.8 -7.8 Non-recurring expenses related to the reorganization of Winter Sports Equipment business area - - - - -42.7 - - - Total 35.2 51.5 -7.8 0.0 11.0 59.1 -12.8 -7.8 All forecasts and estimates presented in this report are based on the management's current judgment of the economic environment. The actual results may differ significantly. AMER SPORTS CORPORATION Board of Directors For further information, please contact: Mr Tommy Ilmoni, Vice President, IR and Corporate Communications, tel. +358 9 7257 8233 Mr Pekka Paalanne, Executive Vice President & CFO, tel. +358 9 7257 8212 Mr Roger Talermo, President & CEO, tel. +358 9 7257 8210 TELEPHONE CONFERENCE An English-language telephone conference call for investors and analysts will be held at 3:00 pm Finnish time. To participate in the conference call, please call +44 20 3003 2666 (UK/international dial-in number). The conference can also be followed from a direct transmission on the internet, at www.amersports.com. A recorded version will later be available at the same address: replay number +44 (0)208 196 1998 and access code 6801881 #. No press conference will be held at Amer Sports headquarters. AMER SPORTS 2009 FINANCIAL CALENDAR AND ANNUAL GENERAL MEETING Amer Sports Annual Report & Accounts 2008 as well as auditors' report will be published in English and Finnish during the week February 23. A printed version of the Annual Report can be ordered on the company website, www.amersports.com, by e-mail from amer.communications@amersports.com or by telephone +358 9 7257 8308. The Annual Report can also be downloaded as a pdf file from the company's website. The Amer Sports Annual General Meeting will be held on Thursday, March 5, 2009. Amer Sports will publish its interim results as follows: - Q1 on Tuesday, April 28 - Q2 on Thursday, August 6 - Q3 on Thursday, October 29 AMER SPORTS CORPORATION Communications Ms Maarit Mikkonen Communications Manager Tel. +358 9 7257 8306, e-mail: maarit.mikkonen@amersports.com www.amersports.com DISTRIBUTION NASDAQ OMX Helsinki Major media www.amersports.com