Accelerating for the future. Amer Sports CMD 2014 // Heikki Takala, President & CEO

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1 Accelerating for the future // Heikki Takala, President & CEO

2 Amer Sports Sustainable Growth Model (SGM) We pursue a Sustainable Growth Model: profitable growth and healthy balance sheet. Our SGM consists of i) revenue growth, ii) making and improving profits, and iii) investing for the future. Our growth can be organic or through acquisitions. We prefer organic. Our profit can come from growth, or through cost cutting. We prefer growth. We constantly renew ourselves to allocate resources into more attractive areas: faster growth, higher profitability, better asset efficiency. 2

3 Amer Sports portfolio logic Amer Sports is A balanced equipment and softgoods company, with a unique model of leveraging our authentic brands An integrated company where portfolio composition is determined by synergies and Amer Sports being the right owner We are the right owner for any asset as long as we develop its performance relatively better vs. its competition and/or we create competitive advantage through unique portfolio logic As long as we own an asset, we aim at growing its revenue, make profits, and invest for its future 3

4 High level performance assessment

5 Long-term financial targets improvement continues Target Growth Profitability Delivering organic, currencyneutral annual growth of 5% EBIT of at least 10% of net sales -4% 8% 9% 5% 8% 5% 3.2% 6.2% 7.2% 6.7% 7.3% EBIT improvement Cash flow Annual free cash flow equal to net profit C/F of Net Profit 4.5 C/F of Net Profit 0.7 C/F of Net Profit negative C/F of Net Profit 0.9 C/F of Net Profit 0.5 Balance sheet structure Year-end Net Debt / EBITDA ratio of 3 or less

6 Progress is driven through our strategic priorities Clear portfolio roles and synergies, integrated company Majority of units improving according to their portfolio role Scale and synergies: example Gross Margin (up 4%-pts vs. 2009) Faster growth in softgoods : Softgoods CAGR 17% Strong growth continues with 1+ BEUR in sight Win with consumers Leveraging our brands to engage with more consumers, in more occasions, more often Win in Go to Market Controlled distribution expansion Emerging markets progressing B2C turning into a contributor own retail stores, 60 e- commerce stores Operational excellence Company organized for driving sustainable fundamentals with improving KPIs 6

7 Majority of units are progressing per targets Business area Objective Status Footwear Apparel Winter Sports Equipment Cycling Sports Instruments Ball Sports Fitness Further accelerate profitable growth Drive significant revenue growth for scale To sustainable profitability. Profitable growth through continuous renewal Re-build profitability, then accelerate To target profitability, then accelerate Re-set the base, then re-ignite profitable growth Back to target profitability through global growth, margin improvement, and efficiency Growth continues with high profitability. CAGR %. Fast growth with improving profitability. CAGR %. Break-even point down by ~20 MEUR. Growth in new segments. Profitable business. Renewal and integration for faster growth. Successful turnaround, profitable growth accelerated. CAGR %. Lagging behind targets, now restructuring. Well on improvement track, CAGR %, 2013 EBIT-% 8.2%. 7

8 In we moved from 2nd division to the premier league SALES CAGR% AMER SPORTS Peer Group Adidas Anta Sports Products Asics Callaway Columbia Dunlop Head Jarden Life Time Fitness Nike Puma Quiksilver Under Armour VF Wolverine World Wide -2-4 AMER SPORTS Data Source: Bloomberg -6 EBIT-%

9 We continue to renew and restructure ourselves for further acceleration

10 CMD 2013: mid-term targets confirmed, focus on acceleration? Building blocks in place Sales >3 BEUR (+5%/a) EBIT ~10% Sales ~1.5 BEUR EBIT <3% Sales ~2.5 BEUR EBIT ~10%

11 Restructuring for acceleration We continue to renew and restructure ourselves Our 2012 restructuring enabled turnaround of Winter Sports Equipment and acceleration of Softgoods, B2C, and emerging markets Our 2014 restructuring is designed to turn around Ball Sports and further accelerate proven growth drivers and ensure appropriate resourcing of new learning areas 11

12 Accelerate through the Core 1. Big categories: Keep appropriate momentum in hardgoods Footwear & Apparel towards 50% of the Group 2. Big brands: towards full long-term potential 3. Big countries: drive USA, core EMEA markets, Japan, and China. Re-confirm model in Russia and Latin America. 4. Multi-channel: own retail and e-commerce to 10+% of sales 12

13 Our next growth area: Digital consumer engagement Digital/connected products represent already >5% of the Group sales Our brands talk to tens of millions of consumers via our websites Our 60 e-commerce shops engage and convert tens of millions of consumers We offer a magnitude of digitally customizable products We have a scalable CRM database with millions of registered consumers 13

14 Amer Sports Connected Digital Ecosystem: Accelerating the potential of the portfolio Connected Products Mobile Engagement Service Platforms Brand Sites Brand and Sport specific Mobile Applications (e.g. Suunto Movescount, Salomon CityTrail, Wilson Basketball) AS 360 CRM Database 3rd party services through API s AMER SPORTS ECOMMERCE 14

15 We now accelerate in Digital Digital capabilities have been established, and acceleration is underway: Drive digitally connected products/devices towards 10% of sales Multiply traffic to our websites and e-commerce Increase conversion (through both e-commerce and wholesale) Step change loyalty through bigger number of registrants in our CRM database 15

16 Summary

17 Prioritized, sequenced program continues Clarify future direction, build critical capabilities, allocate resources and reignite growth New strategy Transformation from Hardgoods to Hybrid Drive organic growth Operational excellence Deliver mid-term targets and prepare for acceleration Sustainable Growth Model Integration for scalable, synergistic platform: acquisition readiness Qualification of business cases for future acceleration On-going renewal and restructuring Sales Acceleration at accretive profitability Continuous portfolio transformation towards: Faster growth Higher profitability Asset efficiency ~ ~ ~

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19 Disclaimer Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Amer Sports assumes no responsibility to update any of the forward-looking statements contained herein. No representation or warranty, express or implied, is made or given by or on behalf of Amer Sports or its employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. 19