Amer Sports Corporation
STOCK EXCHANGE RELEASE
August 26, 2015 at 1:00 p.m.
Amer Sports announces new financial targets and a new accelerated glidepath toward 2020
Amer Sports Board of Directors has decided on new financial targets and a new five-year glidepath toward 2020 with focus on accelerating profitable growth.
Amer Sports' new financial targets are:
- Net sales: At least EUR 3.5 billion with minimum mid-single digit organic, currency-neutral annual growth
- Profit: Annual EBIT growth (excl. non-recurring items) ahead of net sales growth
- Cash flow conversion: Free cash flow / net profit at least 80%
- Net debt / EBITDA: Year-end net debt / EBITDA ratio max 3x
The new glidepath consists of growing the core business and accelerating disproportionally in five prioritized areas: Apparel and Footwear, US, China, Business to Consumer (own retail and e-commerce), as well as digitally connected devices and services.
Compared to the previous financial targets set in 2010, the new targets emphasize accelerated growth, both organic and through acquisitions, and continuously improving profitability. The new 80% cash flow target allows the company to invest appropriately into growth, especially into Apparel and Footwear which are working capital intensive. The net debt / EBITDA target is unchanged.
Amer Sports President and CEO Heikki Takala: "During our 2010-2015 strategic glidepath we returned the company to profitable growth, building our sales from EUR 1.5 billion to approximately EUR 2.5 billion. We have proven our Sustainable Growth Model, and we have now a new accelerated glidepath for the next five years prioritizing five growth areas where we see the highest growth potential and where we have built a repeatable business model. We look forward to taking the company to the next level."
Capital Markets Day August 27, 2015
Amer Sports organizes a Capital Markets Day in Helsinki tomorrow, August 27 starting at 9 am EET. In the event, the new financial targets and the selected five growth areas are being presented in more detail. The presentations can be followed as live webcast via http://cloud.magneetto.com/amersports/2015_0827_CMD/angular.
For further information, please contact:
Päivi Antola, Director, Corporate Communications and IR
Tel. +358 20 7122 537
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Main media
www.amersports.com
AMER SPORTS
Amer Sports (www.amersports.com) is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc'teryx, Mavic, Suunto and Precor. The company's technically advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. The Group's business is balanced by its broad portfolio of sports and products and a presence in all major markets. Amer Sports shares are listed on the Nasdaq Helsinki stock exchange (AMEAS).