Amer Sports Corporation
FINANCIAL STATEMENTS BULLETIN
January 31, 2013 at 1:00 pm
OCTOBER-DECEMBER 2012
* Net sales were EUR 618.5 million (556.9). In local currencies, net sales
increased by 8% with strong broad-based growth across the business areas.
* Gross margin was 41.9% (42.4%). The decline was due to inventory sell-out
and production variances especially in Winter Sports Equipment.
* EBIT excluding non-recurring items was EUR 46.5 million (46.3). Non-
recurring items of EUR -24.8 million (0) were related to the earlier
announced restructuring program.
* Excluding non-recurring items, earnings per share were EUR 0.22 (0.25).
Earnings per share were EUR 0.05 (0.25).
* Net cash flow after investing activities was EUR 96.7 million (49.0), mainly
driven by decreased working capital.
JANUARY-DECEMBER 2012
* Net sales were all-time high at EURÂ 2,064.0 million (1,880.8). In local
currencies, net sales increased by 5.1%.
* Gross margin was 43.6% (43.5%).
* EBIT excluding non-recurring items was EUR 136.5 million (135.5). EBIT
margin was 6.6% (7.2%) excluding non-recurring items. Non-recurring items
were EUR -24.8 million (0) and they were related to the restructuring
program announced in the January-September 2012 interim report.
* Excluding non-recurring items, earnings per share were EUR 0.65 (0.71).
Earnings per share were EUR 0.48 (0.71).
* Net cash flow after investing activities was EUR 71.8 million (-21.4).
* Gearing was 57% (December 31, 2011: 47%). The increase is due to the
redemption of the hybrid bond in March 2012 (impact on gearing 12 percentage
points).
* Amer Sports Board of Directors is proposing a dividend of EUR 0.35 per share
(0.33 per share in 2011).
OUTLOOK FOR 2013
Amer Sports expects the trading environment to remain challenging in 2013. The
company will continue to focus on softgoods growth, consumer-driven product and
marketing innovation, commercial expansion and operational excellence. In 2013,
Amer Sports' net sales in local currencies and EBIT excluding non-recurring
items are expected to increase from 2012.
KEY FIGURES
10-12/ 10-12/
EUR million 2012 2011 Ch % Ch %*) 2012 2011 Ch % Ch %*)
-----------------------------------------------------------------------------
Net sales 618.5 556.9 11 8 2,064.0 1,880.8 10 5
Gross profit 258.9 235.9 10 7 900.6 817.4 10 6
  Gross profit % 41.9 42.4   43.6 43.5
EBIT excluding non-
recurring items 46.5 46.3 0 Â 136.5 135.5 1
EBIT % excluding non-
recurring items 7.5 8.3 Â Â 6.6 7.2
Non-recurring items**) -24.8 - Â Â -24.8 -
EBIT total 21.7 46.3 -53 Â 111.7 135.5 -18
EBIT % 3.5 8.3 Â Â 5.4 7.2
Financing income and
expenses -9.5 -6.1 Â Â -29.9 -20.5
Earnings before taxes 12.2 40.2 Â Â 81.8 115.0
Net result 5.3 31.1 Â Â 57.5 90.9
Earnings per share, EUR 0.05 0.25 Â Â 0.48 0.71
Net cash flow after
investing activities 96.7 49.0 Â Â 71.8 -21.4
Equity ratio, % at
year end     40.7 45.6
Gearing, % at year end     57 47
Personnel at year end     7,186 7,061 2
Average rates used,
EUR/USD Â Â Â Â 1.28 1.39
*) In local currencies
**) Non-recurring items are exceptional transactions that are not related to
normal business operations. The most common non-recurring items are capital
gains, exceptional write-downs, provisions for planned restructuring and
penalties. Non-recurring items are normally specified individually if they have
a material impact on EBIT.
HEIKKI TAKALA, PRESIDENT AND CEO:
"We finished a good but a highly challenging year 2012 with strong momentum in
the fourth quarter. We continued to drive growth, by-passing EUR 2 billion in
net sales for the first time. The growth and improvements were broad-based
across business areas, geographical core markets and our target emerging markets
as well as Business to Consumer channels.
In 2012, our Winter Sports Equipment business was adversely impacted by the
previous mild and late winter, and whilst the business did pick up in the fourth
quarter, the full year sales were down by 8%. Encouragingly, due to our
operational efficiency program Focus, Winter Sports Equipment safeguarded mid-
single-digit profitability despite the sales decline.
As a group, we delivered net sales growth in line with our target of 5%, coupled
with a strongly improved free cash flow and healthy balance sheet. Although we
did not improve profitability in 2012, we mitigated the impacts of the mild
winter 2011/12 and the economic headwinds, and we kept the Group operating
profit at the previous year's level.
Importantly, we did not compromise the long-term development, and throughout
2012 we continued to invest significantly in the strategy execution to ensure
that we have strong building blocks in place for continuous future improvement.
To further drive this improvement, we are now implementing the earlier announced
restructuring program with the objective to drive target scale and synergies and
complexity reduction across the Group.
We have now delivered three consecutive years of continuous improvement, hence
we see that our strategies are working. We continue executing with confidence."
For further information, please contact:
Heikki Takala, President and CEO, tel. +358 9 7257 8210
Jussi Siitonen, CFO, tel. +358 9 7257 8212
Päivi Antola, Director, Corporate Communications and IR, tel. +358 9 7257 8233
TELEPHONE CONFERENCE
An English-language conference call for investors and analysts will be held
today at 3:00 pm Finnish time. To participate in the call, please dial
+44Â (0)20Â 3364Â 5381 (UK/international dial-in number). The conference can also
be followed from a direct transmission via the internet at www.amersports.com. A
recorded version will be available later at the same web address: the replay
number is +44Â (0)20Â 3427Â 0598, and the access code 2400691#.
Annual General Meeting
Amer Sports' Annual General Meeting will be held on Thursday, March 7, 2013 at
Mäkelänkatu 91, Helsinki, Finland starting at 2:00 pm. Reception for persons who
have registered for the Annual General Meeting and the distribution of voting
tickets will commence at 1:30 pm.
First quarter results bulletin
Amer Sports will publish its Q1/2013 results bulletin on Thursday, April
25, 2013 at approximately 1:00 pm Finnish time.
FINANCIAL RESULTS IN OCTOBER-DECEMBER
NET SALES AND EBIT IN OCTOBER-DECEMBER 2012
Amer Sports' net sales in October-December 2012 totaled EURÂ 618.5 million
(556.9). In local currencies, net sales increased by 8%. The growth was broad-
based, driven especially by Fitness (+17%), Ball Sports (+13%), Apparel (+12%),
Footwear (+17%) and Sports Instruments (+25%).
Net sales by business segment
10-12/ 10-12/ Change Change % of sales % of sales
EUR million 2012 2011 % %*) 10-12/12 10-12/11
--------------------------------------------------------------------
Winter and Outdoor 402.8 375.0 7 5 65 67
Ball Sports 127.7 109.0 17 13 21 20
Fitness 88.0 72.9 21 17 14 13
--------------------------------------------------------------------
Total 618.5 556.9 11 8 100 100
--------------------------------------------------------------------
*) In local currencies
Geographic breakdown of net sales
10-12/ 10-12/ Change Change % of sales % of sales
EUR million 2012 2011 % %*) 10-12/12 10-12/11
--------------------------------------------------------------
EMEA 305.3 273.8 12 10 50 49
Americas 224.8 205.4 9 5 36 37
Asia Pacific 88.4 77.7 14 12 14 14
--------------------------------------------------------------
Total 618.5 556.9 11 8 100 100
--------------------------------------------------------------
*) In local currencies
Gross margin was 41.9% (42.4). The decline was due to inventory sell-out and
production variances especially in Winter Sports Equipment.
EBIT excluding non-recurring items was EUR 46.5 million (46.3). Including non-
recurring items, EBIT was EUR 21.7 million (46.3). Non-recurring items were
related to the earlier announced restructuring program.
Increased sales volumes contributed approximately EUR 20 million to EBIT. Gross
margin impacted EBIT by approximately EUR -3 million. Operating expenses
increased by approximately EUR 14 million. Other income and expenses and
currencies impacted EBIT by approximately EUR -3 million.
EBIT excluding non-recurring items by business segment
10-12/ 10-12/ Change
EUR million 2012 2011 %
-------------------------------------------------------
Winter and Outdoor 41.7 45.0 -7
Ball Sports 1.0 -0.7
Fitness 7.9 4.5 76
Headquarters*) -4.1 -2.5
-------------------------------------------------------
EBIT excluding non-recurring items 46.5 46.3 0
-------------------------------------------------------
Non-recurring items -24.8 -
-------------------------------------------------------
EBIT total 21.7 46.3 -53
-------------------------------------------------------
*) Headquarters segment consists of Group administration, shared service
functions, other non-operational income and expenses and fair valuation of share
based compensations. In the fourth quarter, segment operating loss increased by
EUR 1.6 million due to increased net operational expenses of EUR 0.1 million and
a change in fair valuation of share based compensations and other adjustments of
EUR -1.5 million.
Net financial expenses were EUR 9.5 million (6.1) including net interest
expenses of EUR 4.8 million (5.9) and unrealized net foreign exchange losses
totaling EUR 0.8 million (0.0). Other financing expenses were EUR 3.9 million
(0.2). Earnings per share were EUR 0.05 (0.25). Excluding non-recurring items,
earnings per share were EUR 0.22 (0.25).
FINANCIAL RESULTS 2012
2012 was a good year for Amer Sports, despite the challenges with the economy
especially in Europe, and the impact of the late and mild winter in the season
2011/12 on Winter Sports Equipment.
Amer Sports reached record sales in 2012 and the growth was broad-based. The
company delivered all-time high sales in Apparel, Footwear, Cycling, Sports
Instruments and Team Sports, and geographically EMEA and Asia Pacific delivered
record sales, as did the Business to Consumer channel. Further, Fitness and
Individual Ball Sports (former Racquet Sports and Golf) delivered solid
improvements.
NET SALES AND EBIT IN 2012
Amer Sports' net sales in 2012 were EURÂ 2,064.0 million (2011: 1,880.8). Net
sales increased by 5% in local currencies, particularly due to sales growth in
Apparel, up by 23%, Sports Instruments, up by 12%, Fitness, up by 10%, and
Footwear, up by 7%. Individual Ball Sports was up by 7%, mainly due to tennis.
The Group's financial target is to deliver an organic, currency-neutral annual
growth of 5%.
Net sales by business segment
Change Change % of sales % of sales
EUR million 2012 2011 % %*) 2012 2011
----------------------------------------------------------------------
Winter and Outdoor 1,221.2 1,137.6 7 4 59 61
Ball Sports 569.7 511.0 11 5 28 27
Fitness 273.1 232.2 18 10 13 12
----------------------------------------------------------------------
Total 2,064.0 1,880.8 10 5 100 100
----------------------------------------------------------------------
*) In local currencies
Geographic breakdown of net sales
Change Change % of sales % of sales
EUR million 2012 2011 % %*) 2012 2011
----------------------------------------------------------------
EMEA 962.7 917.6 5 4 47 49
Americas 834.1 742.1 12 5 40 39
Asia Pacific 267.2 221.1 21 14 13 12
----------------------------------------------------------------
Total 2,064.0 1,880.8 10 5 100 100
----------------------------------------------------------------
*) In local currencies
Gross margin was 43.6% (43.5).
Group EBIT excluding non-recurring items was EUR 136.5 million (135.5).
Including non-recurring items, EBIT was EUR 111.7 million (135.5). Non-recurring
items were related to the Group-wide restructuring program announced in the
January-September 2012 interim report.
In local currencies, increased sales volumes contributed approximately EUR 44
million to EBIT and higher gross margins approximately EUR 5 million. Other
income and expenses and currencies impacted EBIT by approximately EUR 5 million.
Operating expenses increased by approximately EUR 53 million, driven by
continuous investments in future growth with focus on softgoods, sales coverage,
emerging markets, and own retail. Operating expenses were 37% of sales (37%).
EBIT margin excluding non-recurring items was 6.6% (7.2). The Group's long-term
target is to have EBIT of at least 10% of net sales.
EBIT excluding non-recurring items by business segment
Change
EUR million 2012 2011 %
-----------------------------------------------------
Winter and Outdoor 113.8 118.5 -4
Ball Sports 28.0 25.0 12
Fitness 17.0 10.3 65
Headquarters*) -22.3 -18.3
-----------------------------------------------------
EBIT excluding non-recurring items 136.5 135.5 1
-----------------------------------------------------
Non-recurring items -24.8 -
-----------------------------------------------------
EBIT total 111.7 135.5 -18
-----------------------------------------------------
*) Headquarters segment consists of Group administration, shared service
functions, other non-operational income and expenses and fair valuation of share
based compensations. In 2012, segment operating loss increased by EUR 4.0
million due to increased net operational expenses of EUR 1.9 million and a
change in fair valuation of share-based compensations and other adjustments of
EUR -2.1 million.
Net financial expenses totaled EUR 29.9 million (20.5) which include net
interest expenses of EUR 23.4 million (19.9). Net foreign exchange losses were
EUR 1.2 million (gains of EUR 0.7 million). Other financing expenses were EUR
5.3 million (1.3). Earnings before taxes totaled EURÂ 81.8 million (115.0) and
taxes were EUR -24.3 million (-24.1), resulting a tax rate of 30% due to one-
time adjustments to previous years' taxes. The underlying tax rate remains at
25%. Earnings per share were EUR 0.48 (0.71). Excluding non-recurring items,
earnings per share were EUR 0.65 (0.71).
OUTLOOKS GIVEN FOR 2012
In Amer Sports' financial statements for 2011, it was stated that the company's
2012 net sales in local currencies were expected to increase from 2011.
Increased visibility allowed a further revision of the guidance given and in the
January-June interim report, the company estimated its full-year net sales in
local currencies to increase from 2011 in line with the company's annual 5%
growth target, and EBIT excluding non-recurring items to be approximately at the
level of 2011.
CASH FLOW AND FINANCING
In 2012, net cash flow after investing activities (free cash flow) was EUR 71.8
million (-21.4). Compared to the end of 2011, inventories decreased by EUR 15.0
million. Receivables increased by EUR 24.6 million. Amer Sports' long-term
financial target is to have annual free cash flow equal to net profit. In 2012,
free cash flow was 93% of net profit excluding non-recurring items.
At the end of 2012, the Group's net debt amounted to EUR 434.3 million (391.6).
The increase was due to the redemption of a hybrid bond of EUR 60.0 million and
hybrid bond interest of EUR 7.2 million (7.2), offset by the strong free cash
flow. The hybrid bond was issued on March 12, 2009 and redeemed on March
12, 2012. The hybrid bond and its interests were recognized in equity in Amer
Sports consolidated financial statements. Amer Sports' long-term financial
target for the balance sheet structure is the year-end Net Debt/EBITDA ratio to
be 3 or less. At the end of 2012, the ratio was 2.5 excluding non-recurring
items (2.3).
Interest-bearing liabilities amounted to EUR 576.8 million (470.4) consisting of
short-term debt of EURÂ 198.6 million and long-term debt of EURÂ 378.2 million.
The average interest rate on the Group's interest-bearing liabilities was 3.6%
(3.6%).
Short-term debt consists mainly of repayments of long-term loans of EUR 42.3
million (23.4) and commercial papers of EUR 151.6 (194.2) which Amer Sports had
issued in the Finnish market to fund seasonally high working capital. The total
size of the commercial paper program is EUR 500 million.
Cash and cash equivalents totaled EUR 142.5 million (78.8).
In 2011, Amer Sports signed a syndicated loan that consists of a EUR 200 million
committed revolving credit facility. In June 2012, Amer Sports signed a new 5-
year EUR 40 million committed revolving credit facility with Pohjola Bank. Amer
Sports had not used any of the committed revolving credit facilities at the end
of 2012. The credit facilities will be used for general corporate purposes.
In March 2012, Amer Sports issued two euro denominated bonds. The amount of EUR
150 million was launched and placed on the following terms: EUR 50 million
floating rate notes due March 6, 2014; and EUR 100 million fixed 4.125% notes
due March 15, 2016. The bonds were listed on the NASDAQ OMX Helsinki Ltd on July
27, 2012. In April 2012, Amer Sports signed a 3-year EUR 20 million term loan
with Unicredit Bank Austria AG. The proceeds of the bonds and term loan have
been used for repayment of debt and general corporate purposes.
The equity ratio at the end of the year was 40.7% (45.6%) and gearing was 57%
(47%). The impact of the redemption of the hybrid bond on equity ratio was down
3.3 percentage points and on gearing up 12 percentage points.
The Group's most significant transaction risk arises from the US dollar. Amer
Sports is a net buyer of USD due to sourcing operations in Asia. The next 12
month EUR/USD net flow is expected to be USD 308 million. The weakening of the
euro against the US dollar therefore has a negative impact on the company's
EBIT, with a delay due to hedging.
Amer Sports' hedging policy covers the transaction risk up to 12-18 months
forward. Depending on the business area and its characteristics, hedge ratios
are between 80-120% or 30-70%. A longer hedging horizon together with higher
hedge ratio is applied in Winter and Outdoor. At the end of 2012, the Group had
hedged 80% of the 2013 EUR/USD net cash flow at an average EUR/USD rate of
1.30. This covers over 86% of spring/summer 2013 and over 60% of the fall/winter
2013 USD purchases in Apparel and Footwear, where the EUR/USD exposure is the
highest.
Because Amer Sports' consolidated financial statements are presented in euros,
Amer Sports is subject to currency translation risk when currency dominated
result is converted into euros. Combining the transaction risk and translation
risks of the EBIT, Amer Sports is a net buyer of USD. In all other currencies
the company is a net seller. The most significant currencies after USD are CAD,
CHF, GBP and JPY, with net flows varying from EUR 35 million to EUR 60 million.
A more detailed report on the Group's financial risks and how they are managed
can be found in the notes to the financial statements.
CAPITAL EXPENDITURE AND INVESTMENTS
The Group's capital expenditure totaled EUR 49.2 (51.4) million. Depreciation
totaled EUR 40.2 million (35.8). Capital expenditure in 2013 is expected to be
at the level of 2012.
Cash flow from acquisition was EUR -3.7 million (-6.5) and from divestments EUR
1.1 million (5.3).
RESEARCH AND DEVELOPMENT
Amer Sports' strategy emphasizes excellence in consumer-centric product
creation. Through continuous research and development, Amer Sports seeks to
develop new and better sporting goods that appeal to consumers and its trade
customers.
The Group has seven R&D and design sites globally serving the business areas as
well as increasingly collaborating across units. Research and development
expenses were EUR 72.2 million in 2012, accounting for 9.3% of all operating
expenses (2011: 64.2 million, 9.2% of operating expenses; 2010: 57.4 million,
8.8% of operating expenses). Winter and Outdoor's share of the R&D expenditure
was 66%, while Ball Sports accounted for 12% and Fitness for 22%.
On December 31, 2012, 647 (583) persons were employed in the company's research
and development activities, approximately 9% (8%) of the total number of people
employed by Amer Sports.
SALES AND MARKETING
Amer Sports sells its products to trade customers (including sporting goods
chains, specialty retailers, mass merchants, fitness clubs and distributors) and
directly to consumers through brand stores, factory outlets, and ecommerce.
Amer Sports' strategic priorities include strengthening consumer understanding
and consumer relevance (Win with Consumers) and strengthening the Group's
commercial fundamentals through sales and distribution (Win in Go to Market).
In Winning with Consumers in 2012, Amer Sports reinforced its regional consumer
marketing organizations, now covering North, Central and South Europe as well as
Russia, Asia Pacific and the Americas. These operations are responsible for
improving local consumer understanding and implementing all brand programs
related to trade, in-store, digital and sports marketing.
Market coverage was strengthened through new sales people, with a particular
focus on dedicated apparel and footwear specialists. A similar strategy was
pursued in the Fitness business. As a result, the distribution of Amer Sports'
products grew significantly in these areas, positively impacting sales.
The increased distribution was further reinforced through the installation of
shop-in-shops and improved in-store displays, highlighting the footprint of Amer
Sports' brands in the market place and providing more seductive offers to
consumers. In the expansion markets of Russia, China and Latin America, the
growth was on average 19% and in 2012, these markets accounted for 8% (7%) of
the Group's net sales.
At the end of 2012, Amer Sports had 201 (172) branded retail stores. The
majority of the stores are operated by local, independent partners. In 2012,
Amer Sports strengthened its ecommerce and at the year end, the number of
ecommerce stores was 23 (14). Of the brands, Salomon, Suunto and Arc'teryx are
selling on-line in selected countries.
Sales and distribution expenses in 2012 were EUR 305.1 million (267.5), 15% of
sales (14%). Of the increase, EUR 18 million was related to strategic
investments into distribution (geographical expansion and own retail), while EUR
8 million was growth driven (in local currencies).
Advertising and promotion expenses in 2012 were EUR 222.7 million (208.4), 11%
(11%) of sales.
On December 31, 2012, the Amer Sports shared sales network covered 33 countries.
2,664 (2,454) persons were employed in sales and distribution activities,
representing approximately 37% (35%) of the total number of people employed by
Amer Sports. 613 (560) persons were employed in marketing activities.
SUPPLY CHAIN MANAGEMENT
Reliable, efficient and timely supply chain management is an important element
in Amer Sports' strategy. In 2012 the main focus was on working capital
improvement and complexity reduction.
To gain operational efficiencies and cost savings, Amer Sports is constantly
reviewing both its make or buy strategy and the company's global production and
sourcing footprint. Of Amer Sports' production value, approximately 30% is in
China, 25% elsewhere in Asia Pacific, 30% in Europe and 15% in the Americas.
Amer Sports manufactures approximately 30% of its products itself and
approximately 10% is produced by partially outsourced vendors. Of Amer Sports'
total production value, approximately 60% is outsourced. This includes
manufacturing in all racket sports and golf products, most team sports products
and most of the apparel and footwear. The manufacturing of products and
components for a variety of winter sports equipment, cycling, sports instruments
and fitness equipment has also been outsourced.
Amer Sports' most important own production facilities are located in Austria,
Bulgaria, France, Finland, Canada and the United States.
HUMAN RESOURCES
In 2012, Amer Sports organizational design was further developed according to
the Group strategy. Capabilities were built to meet the new organizational needs
especially in sales and distribution and in the growth categories. Amer Sports
focused on effective resource management in line with business needs. Personnel
key performance indicators were established to manage internal mobility and
resource allocation.
On December 31, 2012, the number of Group employees was 7,186 (December
31, 2011: 7,061, December 31, 2010: 6,645). The increase came mainly from
personnel working in sales and distribution. The increase in Headquarters and
shared services was due to establishing a shared financial service center in the
EMEA region, which will bring scale and synergy benefits. The average number of
personnel in 2012 was 7,209 (2011: 6,921; 2010: 6,545). At the end of 2012, men
represented 63% (2011: 62%; 2010: 62%) of Amer Sports employees and women 37%
(2011: 38%; 2010: 38%).
Salaries, incentives and other related costs paid in 2012 totaled EUR 400.2
million (2011: 358.7; 2010: 336.4). Amer Sports' reward system is based on
performance focusing on team and individual accountability. Basic pay is
supplemented by performance-based bonus schemes and long-term incentive
programs.
December 31, December 31, Change
 2012 2011 %
-----------------------------------------------------------------
Winter and Outdoor 4,639 4,590 1
Ball Sports 1,592 1,631 -2
Fitness 821 749 10
Headquarters and shared services 134 91 47
-----------------------------------------------------------------
Total 7,186 7,061 2
-----------------------------------------------------------------
December 31, December 31, Change
 2012 2011 %
---------------------------------------------
EMEA 4,135 4,185 -1
Americas 2,366 2,312 2
Asia Pacific 685 564 21
---------------------------------------------
Total 7,186 7,061 2
---------------------------------------------
 December 31, December 31, Change
2012 2011 %
------------------------------------------------------------------
Manufacturing and sourcing 2,349 2,588 -9
Sales and distribution 2,664 2,454 9
Support functions/shared services 913 876 4
R&D 647 583 11
Marketing 613 560 9
------------------------------------------------------------------
Total 7,186 7,061 2
------------------------------------------------------------------
CORPORATE RESPONSIBILITY
Amer Sports implements its business strategy in an ethically, socially and
environmentally responsible manner and ensures that its products are innovative
and safe while providing a safe and healthy work environment. The company is
committed to continuous improvements in its performance.
At the core of Amer Sports' business is promoting healthy living and getting
people to be more active. Through Amer Sports' products, the company wants to
help people to stay healthy throughout their lives.
Amer Sports is committed to socially responsible labor and workplace practices.
Amer Sports also expects the sourcing partners to respect human rights in the
spirit of internationally-recognized social and ethical standards including
International Labour Organization (ILO) Standards and the United Nations'
Universal Declaration on Human Rights. Amer Sports is committed to the
principles that are explained in the Company Code of Conduct and Ethical Policy.
Amer Sports' Social Compliance Policy defines how the company implements its
supplier monitoring program. Amer Sports provides training to help to ensure
that standards are met and actively monitors the performance of its sourcing
partners. Amer Sports is committed to improving working conditions in the
supplier companies through cooperation with them.
Amer Sports' sourcing office in Hong Kong ensures that sub-contractors follow
Amer Sports' standards for ethical operations. Amer Sports conducts third party
audits to help sourcing partners comply with industry standards, regulations,
and Amer Sports' expectations in regards to health and safety, as well as to the
environment and social responsibility.
Amer Sports is committed to reducing the environmental impact of its operations
by using methods which are both responsible and economically sound. In 2012, the
company participated in the Carbon Disclosure Project (CDP) and positioned in
the mid-range level (2011: mid-range level).
BUSINESS SEGMENT REVIEWS
WINTER AND OUTDOOR
10-12/ 10-12/ Change Change Change Change
EUR million 2012 2011 % %*) 2012 2011 % %*)
-------------------------------------------------------------------------------
Net sales
  Winter Sports
  Equipment 203.2 205.0 -1 -3 425.0 448.4 -5 -8
  Footwear 60.7 51.0 19 17 314.4 287.7 9 7
  Apparel 77.0 65.8 17 12 248.6 191.6 30 23
  Cycling 31.8 29.5 8 7 129.0 120.5 7 5
  Sports Instruments 30.1 23.7 27 25 104.2 89.4 17 12
Net sales, total 402.8 375.0 7 5 1,221.2 1,137.6 7 4
EBIT excluding non-
recurring items 41.7 45.0 -7 Â 113.8 118.5 -4
EBIT % excluding
non-recurring items 10.4 12.0 Â Â 9.3 10.4
Non-recurring items 18.4 - Â Â 18.4 -
EBIT total 23.3 45.0 -48 Â 95.4 118.5 -19
Personnel, Dec 31 Â Â Â Â 4,639 4,590 1
*) In local currencies
In 2012, Winter and Outdoor's net sales were EUR 1,221.2 million (1,137.6), an
increase of 4% in local currencies. Net sales growth was driven by Apparel, with
an increase of 23% and Sports Instruments, with an increase of 12%, supported by
Footwear, up by 7%, and Cycling, up by 5%. EMEA, the biggest geographical area
of Winter and Outdoor, increased by 2%, the Americas by 6% and Asia Pacific by
12% (in local currencies).
In October-December, Winter and Outdoor's net sales totaled EUR 402.8 million
(375.0), an increase of 5% in local currencies. Good growth continued in Sports
Instruments, up by 25%. Footwear was up by 17%, Apparel by 12% and Cycling by
7%. Sales in Winter Sports Equipment declined by 3% in local currencies. The
earlier announced pre-order decline of 13% was partly offset by higher in-season
orders compared to October-December 2011.
10-12/ 10-12/ Change Change Change Change
EUR million 2012 2011 % %*) 2012 2011 % %*)
----------------------------------------------------------------------
EMEA 265.8 241.9 10 8 774.4 751.3 3 2
Americas 79.0 77.9 1 -4 289.5 253.4 14 6
Asia Pacific 58.0 55.2 5 4 157.3 132.9 18 12
----------------------------------------------------------------------
Total 402.8 375.0 7 5 1,221.2 1,137.6 7 4
----------------------------------------------------------------------
*) In local currencies
In 2012, EBIT excluding non-recurring items was EUR 113.8 million (118.5).
Increased sales volumes contributed approximately EUR 24 million to the EBIT
while higher gross margins contributed approximately EURÂ 6 million. Operating
expenses increased by approximately EUR 40 million due to sales and distribution
costs. Other income and expenses and currencies impacted by approximately EUR 5
million on EBIT.
In October-December, EBIT excluding non-recurring items was EUR 41.7 million
(45.0). Increased sales volumes contributed approximately EUR 8 million to the
EBIT while the impact of lower gross margins was approximately EURÂ -4 million.
Operating expenses increased by approximately EUR 5 million. Other income and
expenses and currencies impacted by approximately EUR -2 million on EBIT.
Winter Sports Equipment
In 2012, Winter Sports Equipment's net sales totaled EUR 425.0 million (448.4)
and decreased by 8% in local currencies due to the late and mild winter in the
season 2011/12. Alpine ski equipment represented 71% of net sales, cross country
14%, snowboards 9% and active protection 6%. Net sales of alpine ski equipment
decreased in local currencies by 7%, cross country ski equipment by 17%,
snowboards by 13% while active protection increased by 17%.
In 2012, 65% of the Winter Sports Equipment business area's net sales were
derived from EMEA, 20% from the Americas, and 15% from Asia Pacific. In local
currencies, net sales decreased in EMEA by 8% and in the Americas by 16%. Net
sales increased in Asia Pacific by 5%.
The operational efficiency program, Focus, which started in 2010 continued to
deliver further improved customer service and increased flexibility with shorter
lead times. Also, raw material complexity reduction and reducing the number of
old stock-keeping units continued.
In October-December, Winter Sports Equipment's net sales were EUR 203.2 million
(205.0) with a decline of 3% in local currencies. In-season orders increased
significantly compared to the fourth quarter of 2011.
Footwear
In 2012, Footwear's net sales were EUR 314.4 million (287.7), up by 7% in local
currencies. The growth came from all product segments. EMEA represented 77% of
global sales, followed by the Americas with 18%, and Asia Pacific with 5%. In
local currencies, net sales increased in EMEA by 3%, in the Americas by 21% and
in Asia Pacific by 13%. Customers were cautious and de-stocking their
inventories in Europe.
In October-December, Footwear's net sales totaled EUR 60.7 million (51.0) and
were up by 17% in local currencies. Sales in Russia, Americas and Asia Pacific
continued to increase.
Apparel
In 2012, Apparel's net sales totaled EUR 248.6 million (191.6) and increased by
23% in local currencies. Sales on both main brands, Salomon and Arc'teryx, grew.
EMEA was 48% of global sales, the Americas 40%, and Asia Pacific 12%. In local
currencies, net sales increased in the Americas by 26%, in EMEA by 22% and in
Asia Pacific by 19%.
In October-December, Apparel's net sales totaled EUR 77.0 million (65.8) and
were up by 12% in local currencies.
Cycling
In 2012, Cycling's net sales were EUR 129.0 million (120.5) and increased by 5%
in local currencies. Cycling equipment (rims, wheels and tires) represented 81%
of net sales, and cycling softgoods (apparel, helmets and footwear) 19%. Net
sales of cycling equipment increased in local currencies by 3% and cycling
softgoods by 18%.
The sales growth was supported by countries in which Mavic has brought third
party distributor operations in-house. Net sales by geographical region were as
follows: EMEA 67%, the Americas 17% and Asia Pacific 16%. In local currencies,
net sales increased in EMEA by 6% and in Asia Pacific by 4%. In the Americas net
sales were at previous year's level.
In October-December, Cycling's net sales totaled EUR 31.8 million (29.5) and
increased by 7% in local currencies.
Sports Instruments
In 2012, Sports Instruments' net sales totaled EUR 104.2 million (89.4) and
increased by 12% in local currencies. The growth was supported by strengthened
distribution together with strong sales of the Suunto GPS watch, which was
launched during the first quarter of 2012.
The biggest product categories were outdoor and training products, representing
74% of net sales, and diving instruments, 19% of net sales. Outdoor and training
products sales grew by 25% and diving instruments by 4%.
The distribution of net sales by geographical region was as follows: EMEA 47%,
Asia Pacific 27% and the Americas 26%. In local currencies, net sales increased
in Asia Pacific by 31%, in the Americas by 9% and in EMEA by 5%.
In October-December, Sports Instruments' net sales were EUR 30.1 million (23.7)
and increased by 25% in local currencies.
BALL SPORTS
10-12/ 10-12/ Change Change Change Change
EUR million 2012 2011 % %*) 2012 2011 % %*)
-------------------------------------------------------------------------
Net sales
  Individual Ball
  Sports**) 61.8 51.9 19 16 318.8 283.0 13 7
  Team Sports 65.9 57.1 15 11 250.9 228.0 10 3
Net sales, total 127.7 109.0 17 13 569.7 511.0 11 5
EBIT excluding
non-recurring items 1.0 -0.7 Â Â 28.0 25.0 12
EBIT % excluding
non-recurring items 0.8 Â Â Â 4.9 4.9
Non-recurring items 5.5 - Â Â 5.5 -
EBIT total -4.5 -0.7 Â Â 22.5 25.0 -10
Personnel, Dec 31 Â Â Â Â 1,592 1,631 -2
*) In local currencies
**) Includes former Racquet Sports and Golf businesses
In 2012, Ball Sports' net sales were EUR 569.7 million (511.0), up by 5% in
local currencies. Both business areas grew. Geographically, Ball Sports' sales
increased in local currencies by 4% in the Americas, the biggest area of Ball
Sports, by 13% in Asia Pacific and by 2% in EMEA.
In October-December, Ball Sports' net sales totaled EUR 127.7 million (109.0).
In local currencies, sales increased by 13% due to the strong sales growth in
both Individual Ball Sports and Team Sports with growth of 16% and 11%,
respectively.
10-12/ 10-12/ Change Change Change Change
EUR million 2012 2011 % %*) 2012 2011 % %*)
------------------------------------------------------------------
EMEA 18.5 17.2 8 8 118.0 113.4 4 2
Americas 89.7 75.1 19 15 370.1 331.0 12 4
Asia Pacific 19.5 16.7 17 13 81.6 66.6 23 13
------------------------------------------------------------------
Total 127.7 109.0 17 13 569.7 511.0 11 5
------------------------------------------------------------------
*) In local currencies
In 2012, EBIT excluding non-recurring items was EUR 28.0 million (25.0).
Increased sales volumes contributed approximately EUR 11 million to the EBIT
growth while the impact of lower gross margins was approximately EUR -1 million.
Operating expenses increased by approximately EUR 7 million due to sales and
distribution costs (all in local currencies).
In October-December, EBIT excluding non-recurring items was EUR 1.0 million (-
0.7). The improvement was driven by the strong sales growth in the quarter.
Individual Ball Sports (former Racquet Sports and Golf)
Individual Ball Sports' net sales in 2012 totaled EUR 318.8 million (283.0) and
increased by 7% in local currencies. The biggest product category was tennis
rackets, representing 29% of net sales. Net sales of tennis rackets increased by
14% due to the new performance tennis racket product line, Japan's recovery from
natural disaster in 2011 and bringing third party distributor operations in-
house in China. Sales of tennis balls, representing 18% of Individual Ball
Sports sales, grew by 6%.
The Americas accounted for 43% of the net sales, EMEA 36% and Asia Pacific 21%.
In local currencies, Asia Pacific increased by 14%, the Americas by 7% and EMEA
by 2%.
In October-December, Individual Ball Sports' net sales were EUR 61.8 million
(51.9) and increased by 16% in local currencies. The growth was broad-based
across all regions and multiple key product categories.
Team Sports
Team Sports' net sales in 2012 were EUR 250.9 million (228.0) and increased by
3% in local currencies. The biggest product categories were American footballs,
representing 22% of net sales, baseball and softball bats, 20%, basketballs,
15%, and baseballs and gloves, 19%. Growth was achieved throughout the Team
Sports business with the exception of baseball bats, which decreased as trade
was de-stocking their inventories.
The breakdown of Team Sports sales by region was as follows: the Americas 93%,
Asia Pacific 6% and EMEA 1%. In local currencies, sales increased in Asia
Pacific by 11%, the Americas by 3% and in EMEA by 2%.
In October-December, Team Sports' net sales totaled EUR 65.9 million (57.1) and
increased by 11% in local currencies.
FITNESS
10-12/ 10-12/ Change Change Change Change
EUR million 2012 2011 % %*) 2012 2011 % %*)
-------------------------------------------------------------------------
Net sales 88.0 72.9 21 17 273.1 232.2 18 10
EBIT excluding
non-recurring items 7.9 4.5 76 Â 17.0 10.3 65
EBIT % excluding
non-recurring items 9.0 6.2 Â Â 6.2 4.4
Non-recurring items 0.1 - Â Â 0.1 -
EBIT total 7.8 4.5 73 Â 16.9 10.3 64
Personnel, Dec 31 Â Â Â Â 821 749 10
*) In local currencies
In 2012, Fitness' net sales were EUR 273.1 million (232.2) and increased by 10%
in local currencies. Geographically, the Americas accounted for 64% of the net
sales, EMEA 26% and Asia Pacific 10%. In local currencies, EMEA increased by
28%, Asia Pacific by 21% and the Americas by 3%. The commercial business (clubs
and institutions) represented 88% (87%) of Fitness' net sales while consumer
(home use) was 12% (13%).
10-12/ 10-12/ Change Change Change Change
EUR million 2012 2011 % %*) 2012 2011 % %*)
------------------------------------------------------------------
EMEA 21.0 14.7 43 39 70.3 52.9 33 28
Americas 56.1 52.4 7 4 174.5 157.7 11 3
Asia Pacific 10.9 5.8 88 88 28.3 21.6 31 21
------------------------------------------------------------------
Total 88.0 72.9 21 17 273.1 232.2 18 10
------------------------------------------------------------------
*) In local currencies
In 2012, Fitness' EBIT excluding non-recurring items was EUR 17.0 million
(10.3). Increased sales volumes contributed approximately EUR 10 million to the
EBIT growth. Operating expenses increased by approximately EUR 3 million mainly
due to increased sales and distribution costs (all in local currencies).
In October-December, Fitness' net sales totaled EUR 88.0 million (72.9) and
increased by 17% in local currencies. Strong growth in Asia Pacific and EMEA
continued.
In October-December, EBIT excluding non-recurring items was EUR 7.9 million
(4.5). The increase was due to increased sales volumes.
CORPORATE GOVERNANCE STATEMENT
In its decision making and administration, Amer Sports Corporation applies the
Finnish Companies Act, the Finnish Securities Markets Act and the rules issued
by the NASDAQ OMX Helsinki Stock Exchange, Amer Sports' Articles of Association,
and the Finnish Corporate Governance Code 2010 for listed companies. Amer Sports
complies with the code without exceptions. The code is published at:
www.cgfinland.fi.
This Corporate Governance Statement has been prepared pursuant to Recommendation
54 of the Finnish Corporate Governance Code 2010 for listed companies and the
Securities Markets Act (Chapter 7, Section 7) and it is issued separately from
the Board of Directors' report. The Audit Committee of the Board of Directors
has reviewed this Corporate Governance Statement and Amer Sports' auditor,
PricewaterhouseCoopers Oy, has checked that the statement has been issued and
that the description of the main features of the financial reporting process,
internal control and risk management is consistent with the financial
statements.
CHANGES IN GROUP MANAGEMENT
Vincent Wauters, Amer Sports' SVP Supply Chain and IT, was nominated General
Manager for Arc'teryx Inc effective June 13, 2012. Simultaneously Antti
Jääskeläinen, previously Amer Sports' Chief Development Officer, assumed
leadership for the Group Supply Chain and IT on top of his existing
responsibilities and he was nominated Chief Development Officer and SVP, Supply
Chain and IT. Mr. Wauters is no longer a member of the Group Executive Board.
Additional details concerning members of the Amer Sports' Executive Board can be
found at: www.amersports.com/about.
CHANGES IN GROUP STRUCTURE
In January 2012, the company completed the acquisition of the remaining 5%
minority share in Atomic Austria GmbH. In March, the company sold its 60% share
in Suunto Benelux BV. The transactions had no material impact on Amer Sports'
financial position.
SHARES AND SHAREHOLDERS
The company's share capital totaled EUR 292,182,204 on December 31, 2012 and the
number of shares was 118,517,285. Each share entitles the holder to one vote at
the company's general meeting.
Authorizations
The Annual General Meeting held on March 10, 2011 authorized the Board of
Directors to decide on the repurchase of a maximum of 10,000,000 of the
company's own shares ("Repurchase Authorization"). The company's own shares
shall be repurchased otherwise than in proportion to the holdings of the
shareholders by using the non-restricted equity through public trading on the
NASDAQ OMX Helsinki at the market price prevailing at the time of acquisition.
The shares shall be repurchased and paid for in accordance with the rules of the
NASDAQ OMX Helsinki and Euroclear Finland Ltd. The Repurchase Authorization was
valid for 18 months from the decision of the Annual General Meeting. The Board
of Directors did not utilize the authorization during 2012.
The Annual General Meeting held on March 8, 2012 authorized the Board of
Directors to decide on the repurchase of a maximum of 10,000,000 of the
company's own shares ("Repurchase Authorization"). The company's own shares
shall be repurchased otherwise than in proportion to the holdings of the
shareholders by using the non-restricted equity through public trading on the
Nasdaq OMX Helsinki at the market price prevailing at the time of acquisition.
The shares shall be repurchased and paid for in accordance with the rules of the
Nasdaq OMX Helsinki and Euroclear Finland Ltd. The Repurchase Authorization is
valid 18 months from the decision of the Annual General Meeting. The Board of
Directors did not utilize the authorization during 2012.
Apart from the above, the Board of Directors has no other authorizations to
issue shares, convertible bonds or warrant programs.
Own shares
Amer Sports' Board of Directors decided on January 31, 2012 to cancel a total of
3,000,000 own shares held by the company, which equated to approximately 2.5% of
the registered number of shares. The cancellation did not affect the company's
share capital.
Based on the Board of Directors' decision, a total of 280,029 Amer Sports shares
were transferred on March 8, 2012 to the personnel involved in the company's
Performance Share Plan 2010 and the Restricted Stock Plan 2010. The shares were
transferred from the shares owned by Amer Sports Corporation.
At the end of December, Amer Sports held a total of 738,505 shares (December
31, 2011: 4,012,125) of Amer Sports Corporation. The number of own shares
corresponds to 0.62% (3.30) of all Amer Sports shares. A total of 6,409 shares
granted as share-based incentives were returned to Amer Sports in 2012 in
accordance with the terms of the incentive plan as the employment ended.
Trading in shares
In 2012, a total of 63.4 million (76.9) Amer Sports shares with a value totaling
EURÂ 629.4 million (752.5) were traded on the NASDAQ OMX Helsinki Ltd. Share
turnover was 53.9% (64.2%) (expressed as a proportion of the average number of
shares, excluding own shares). The average daily volume in 2012 was 253,603
shares (303,975).
In addition to the NASDAQ OMX Helsinki Ltd., Amer Sports shares are traded on
several alternative market places, for example Chi-X, BATS, Burgundy and
Turquoise. In 2012, a total of 18.2 million (17.4) Amer Sports shares were
traded on these alternative exchanges.
The closing price of the Amer Sports Corporation share on the NASDAQ OMX
Helsinki Ltd stock exchange in 2012 was EUR 11.25 (2011: 9.00). The share price
rose by 25% during the year while OMX Helsinki Cap index rose by 10%. Shares
registered a high of EUR 11.80 (11.97) and a low of EUR 8.39 (7.52). The average
share price was EUR 9.93 (9.78). On December 31, 2012, the company had a market
capitalization of EUR 1,325.0 million (1,057.5), excluding own shares.
At the end of December, Amer Sports Corporation had 14,726 registered
shareholders (15,351). Ownership outside of Finland and nominee registrations
represented 42.4% (48.7) of the company's shares. Public sector entities owned
18.1% (14.3), financial and insurance corporations 16.2% (11.5), households
11.8% (12.1), non-profit institutions 8.3% (7.6), private companies 2.6% (2.5),
and Amer Sports 0.6% (3.30).
Major shareholders, December 31, 2012 (does not include nominee registrations
nor shares held by the company)
% of shares
  Shares and votes
--------------------------------------------------------------------
1. Varma Mutual Pension Insurance Company 8,280,680 6.99
2. Maa- ja Vesitekniikan Tuki ry. 5,000,000 4.22
3. Ilmarinen Mutual Pension Insurance Company 4,173,564 3.52
4. Mandatum Life Insurance Company Limited 4,000,000 3.38
5. The Local Government Pensions Institution 3,682,061 3.11
6. Brotherus Ilkka 2,687,778 2.27
7. Tapiola Mutual Pension Insurance Company 2,643,091 2.23
8. OP-Focus Non-UCITS Fund 1,935,624 1.63
9. Odin Norden 1,881,642 1.59
10. Danske Fund Finnish Institutional Equity 1,394,545 1.18
Notification of change in shareholding under the Finnish Securities Market Act
On February 7, 2012, Amer Sports received information to the effect that Orkla
ASA's (Norwegian trade register no. 910 747 711) share capital and voting rights
of Amer Sports had fallen below 5% on February 6, 2012. At that time Orkla ASA
owned 3,891,352 shares, which represented 3.2% of Amer Sports Corporation's
share capital and voting rights (previously 6,081,352 shares).
Disclosure of control
Amer Sports' Board of Directors is not aware of any natural or legal persons who
have control over the company or has information on these persons' portion of
the voting rights of the shares and of the total number of shares.
Agreements and arrangements relating to shareholdings and the use of voting
rights
Amer Sports' Board of Directors is not aware of any agreements or arrangements
concerning the ownership of the company's shares and the use of their voting
rights.
Shareholdings of Board of Directors and Executive Board on December 31, 2012
Circle of acquaintances
Shareholder Shares and controlled corporations
--------------------------------------------------------------------------------
Board of Directors
--------------------------------------------------------------------------------
Anssi Vanjoki 34,266
Ilkka Brotherus 2,687,778 9,250
Martin Burkhalter 10,515
Christian Fischer 10,515
Hannu Ryöppönen 8,799
Bruno Sälzer 10,515
Indra Ã…sander 1,838
--------------------------------------------------------------------------------
Executive Board
--------------------------------------------------------------------------------
Heikki Takala 91,860
Paul Byrne 27,401
Chris Considine 36,542
Mike Dowse 21,982
Victor Duran 21,315
Matt Gold 20,000
Terhi Heikkinen 25,369
Antti Jääskeläinen 25,441
Bernard Millaud 30,348
Mikko Moilanen 23,334
Jean-Marc Pambet 36,557
Michael Schineis 31,036
Jussi Siitonen 24,686 300
Andy Towne 11,656
Michael White 17,906
--------------------------------------------------------------------------------
TOTAL 3,209,659 9,550
--------------------------------------------------------------------------------
% of shares 2.7 0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Including circle of acquaintances and
controlled corporations 3,219,209
--------------------------------------------------------------------------------
% of shares 2.7
--------------------------------------------------------------------------------
During the year, the Group had two cash-based long-term incentive plans and
three share-based incentive plans for Group key personnel. On December
14, 2012, the Board of Directors approved two new share-based incentive plans
for the Group key personnel, Performance Share Plan 2013 and Restricted Stock
Plan 2013. The incentive plans are described in the notes to the financial
statements.
DECISIONS OF THE GENERAL MEETING OF SHAREHOLDERS
At the Amer Sports Corporation Annual General Meeting held on March 8, 2012, the
following resolutions were approved:
Adoption of the annual accounts
The Annual General Meeting (AGM) approved Amer Sports' financial statements for
2011.
Resolution on use of the profit shown on the balance sheet and the payment of
dividend
The AGM resolved to distribute a dividend of EUR 0.33 per share to be paid for
the financial year ended December 31, 2011. The dividend was paid to
shareholders who were registered in the list of shareholders maintained by
Euroclear Finland Ltd as of March 13, 2012, which was the record date for the
dividend payment. The dividend was paid on March 20, 2012.
Resolution on the discharge of the members of the Board of Directors and the CEO
from liability
The AGM granted the members of the Board of Directors and Company's President
and CEO, Heikki Takala a discharge from liability for the financial year 2011.
Resolution on the remuneration of the members of the Board of Directors
It was approved that the annual remuneration payable to the Board of Directors
be as follows: Chairman EUR 100,000, Vice Chairman EUR 60,000, and other members
EUR 50,000. No extra remuneration is paid for attending meetings of the Board of
Directors or meetings of the Committees of the Board of Directors. Of the annual
remuneration, 40% is paid in the form of the Company's shares and 60% in cash.
Resolution on the number of members of the Board of Directors
The AGM confirmed that the number of members of the Board of Directors is seven
(7).
Election of members of the Board of Directors
The AGM elected Ilkka Brotherus, Martin Burkhalter, Christian Fischer, Hannu
Ryöppönen, Bruno Sälzer, Anssi Vanjoki and Indra Åsander as members of the Board
of Directors. The Board of Directors' term of service will run until the close
of the 2013 Annual General Meeting.
Resolution on the remuneration of the auditor
The AGM decided that the auditor's fee will be paid as invoiced.
Election of auditor
The AGM elected the Authorized Public Accountants PricewaterhouseCoopers Oy to
act as auditor of the Company. The Audit Committee of the Board of Directors
proposes that the auditor in charge of the audit is Jouko Malinen, Authorized
Public Accountant.
Authorizing the Board of Directors to decide on the repurchase of the Company's
own shares
The AGM authorized the Board of Directors to decide on the repurchase of a
maximum of 10,000,000 of the company's own shares ("Repurchase Authorization").
The company's own shares shall be repurchased otherwise than in proportion to
the holdings of the shareholders by using the non-restricted equity through
public trading on the Nasdaq OMX Helsinki at the market price prevailing at the
time of acquisition. The shares shall be repurchased and paid for in accordance
with the rules of the Nasdaq OMX Helsinki and Euroclear Finland Ltd. The
Repurchase Authorization is valid for 18 months from the decision of the Annual
General Meeting.
BOARD OF DIRECTORS' WORKING ARRANGEMENTS
At its organizing meeting immediately following the Annual General Meeting, the
Board of Directors appointed Anssi Vanjoki as Chairman and Ilkka Brotherus as
Vice Chairman. From among its members, the Board appointed the following members
to the Board Committees:
* Compensation Committee: Bruno Sälzer, Chairman, Christian Fischer, Anssi
Vanjoki and Indra Ã…sander
* Nomination Committee: Ilkka Brotherus, Chairman, Martin Burkhalter and Anssi
Vanjoki
* Audit Committee: Hannu Ryöppönen, Chairman, Ilkka Brotherus and Martin
Burkhalter
GROUP-WIDE RESTRUCTURING PROGRAM
At the beginning of November 2012, Amer Sports started a restructuring program
to drive further scale and synergies and cost efficiencies, as well as to
sustain growth through resource allocation especially into softgoods and
expansion markets and channels. The program is estimated to deliver an annual
cost saving of EUR 20 million once fully executed by the end of 2014. The
program contributes to reaching the Group's long term profitability target of
10% EBIT.
The restructuring program is Group-wide, and focused on the following key areas:
* Driving further scale and synergies and decreasing complexity and
duplication in all business areas, regions, functions, sites and platforms
* Further reducing weather dependency in Winter Sports Equipment through
reduction of fixed operating costs, following the operational model
restructuring program started in 2010, which is now completed
* Resource allocation to support growth in softgoods as well as expansion
markets and channels.
The expected headcount impact of the restructuring program once fully
implemented is approximately 250, mainly in Winter and Outdoor.
One-time costs related to the restructuring program and complexity reduction
were EUR 24.8 which was recorded in the fourth quarter of 2012, with no cash
impact in 2012. Once fully implemented by the end of 2014, the total cash flow
impact is expected to be EUR 19 million.
SIGNIFICANT RISKS AND UNCERTAINTIES
Amer Sports' business is balanced by its broad portfolio of sports and brands,
the increasing share of softgoods in the company portfolio as well as the
company's presence in all major markets. Short-term risks for Amer Sports are
particularly associated with general economic conditions, consumer demand
development in Europe, North America and Japan, the ability to identify and
respond to constantly shifting trends and the ability to leverage advancements
in technologies and to develop new and appealing products. For example, the
following risks could potentially have an impact on the company's development:
* The sporting goods industry is subject to risks related to consumer demand
in various parts of the world. Amer Sports is particularly dependent on
general economic conditions and consumer demand in Europe, North America and
Japan. Economic downturn may increase trade customers' payment problems and
Amer Sports may be forced to write-off accounts receivables.
* Amer Sports can be adversely affected by unusual or severe weather
conditions. For example, sales of winter sports equipment is affected by
snow conditions in particular in Europe and North America.
* The sporting goods industry is highly competitive and includes many
regional, national and global companies. Although Amer Sports has no
competitors that challenge it across of all of its product categories, the
company faces competition from a number of companies in most of the product
categories. There cannot be any assurances that additional competitors will
not enter Amer Sports' existing markets or that Amer Sports will be able to
compete successfully against existing or new competitors.
* Amer Sports and its subcontractors use steel, aluminium, rubber and oil-
based materials and components in the manufacturing and must obtain adequate
supplies of these raw materials from the markets in competition with other
users of such materials. Significant fluctuations in raw material prices may
impact margins. Labour costs are increasing in Asia, especially in China
where Amer Sports sources significant portion of its products. Possibilities
to find alternative low-cost sourcing countries are limited in the short
term.
* Amer Sports' success is dependent on its ability to identify and respond to
constantly shifting trends in consumer demand, its ability to leverage
advancements in technologies and to develop new and appealing products. One
of Amer Sports' strategic cornerstones is Winning with Consumers. In order
to successfully execute the strategy, knowing enough about consumers
(consumer insight) and ability to successfully utilize such knowledge is
essential.
* Trade customers are developing new business models such as selling on the
internet, keeping less inventories and requesting consignment stock
arrangement. Trade customers are also becoming more demanding in terms of
on-time and in-full delivery. Trade customers are demanding new value adding
services, such as price tagging. This may increase Amer Sports' costs
without generating additional revenue. Retailers may quickly change their
product offering and de-list Amer Sports' brands and/or products if not
satisfied with service, products and/or trade terms.
* Amer Sports' most important production facilities are the Winter Sports
Equipment's factories in Austria and Bulgaria, Fitness' factory in the
United States, and Sports Instruments' factory in Finland. In addition, Amer
Sports has major factories in Eastern Europe, which are owned by
subcontractors. Amer Sports' most important distribution centers are located
in Germany, Austria, the United States and France. Any unexpected production
or delivery breaks in these units would have a negative impact on the
company's business.
* Growing the number of Amer Sports' own retail stores requires up-front
investment. In addition, the maintenance of the stores and the personnel
employed in own retail create more fixed costs than distribution to trade
customers. A failure to execute Amer Sports' retail growth plan as part of
Amer Sports' multi-channel sales strategy could have a negative impact on
Amer Sports' results.
* Despite extensive testing of its products before market launch, the company
cannot completely rule out the risk of product recalls and legal actions
related to product liability. Amer Sports has standard insurance cover
against the financial consequences of product recalls and product liability
cases. Product quality issues could harm Amer Sports' reputation and, as a
result, could have an adverse effect on its sales.
* A characteristic feature of the sporting goods industry is the need to
protect intellectual property rights (IPR) and disputes connected with them.
Any litigation to defend against claims or infringement could result in
substantial costs and diversion of resources and could negatively affect
results of operations or the competitive position of Amer Sports. The
material impacts on Amer Sports' financial position arising from pending
litigation and decisions of the authorities are assessed regularly, and
current estimates are presented publicly when necessary.
* Amer Sports sources a significant proportion of its products from
subcontractors located throughout Asia, which exposes it to the political,
economic, and regulatory conditions in that area and to a variety of local
business and labor practice issues. Although Amer Sports has third party
audit programs in Asia, Amer Sports cannot fully control its subcontractors'
actions. The violation of labor laws, regulations or standards by Amer
Sports' subcontractors, or the divergence of those subcontractors' labor
practices from those generally accepted as ethical in the European Union or
the international community, could have a material adverse effect on Amer
Sports' public image and the reputation of its brands. Possible delivery
problems and breaches of contracts of subcontractors may also have an impact
on Amer Sports' operations.
* Foreign exchange risk consists of transaction risk and translation risk. Due
to geographical distribution of Amer Sports' operations, especially in light
of sourcing from Asia, most significant currency risks arise from the U.S.
dollar and to lesser extent, from Japanese yen and the Canadian dollar. Amer
Sports uses hedging instruments to mitigate the impact of exchange rate
fluctuations.
OUTLOOK FOR 2013
Amer Sports expects the trading environment to remain challenging in 2013. The
company will continue to focus on softgoods growth, consumer-driven product and
marketing innovation, commercial expansion and operational excellence. In 2013,
Amer Sports' net sales in local currencies and EBIT excluding non-recurring
items are expected to increase from 2012.
BOARD OF DIRECTORS' PROPOSAL FOR DISTRIBUTION OF EARNINGS
The parent company's distributable earnings amount to EUR 256,745,430.20, of
which the net result for the period is EUR -10,009,574.67.
The Board of Directors proposes to the Annual General Meeting that the
distributable earnings be used as follows:
- A dividend of EUR 0.35 per share, totaling EUR 41,481,049.75 to be paid to
shareholders
- EUR 215,264,380.45 to be carried forward in distributable earnings
Totaling EUR 256,745,430.20
No dividend will be paid for own 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, and it has been prepared in accordance with the
International Financial Reporting Standards (IFRS) as adopted by EU. The notes
are an integral part of consolidated financial information.
EUR million
CONSOLIDATED RESULTS
10-12/ 10-12/ Change 1-12/ 1-12/ Change
 2012 2011 % 2012 2011 %
----------------------------------------------------------------------------
NET SALES 618.5 556.9 11 2,064.0 1,880.8 10
Cost of goods sold -359.6 -321.0 Â -1,163.4 -1,063.4
----------------------------------------------------------------------------
GROSS PROFIT 258.9 235.9 10 900.6 817.4 10
License income 2.0 2.3 Â 7.5 8.7
Other operating income 1.3 2.6 Â 6.0 5.4
R&D expenses -20.7 -20.6 Â -72.2 -64.2
Selling and marketing expenses -147.1 -138.3 Â -527.8 -475.9
Administrative and other
expenses -47.9 -35.6 Â -177.6 -155.9
Non-recurring expenses -24.8 - Â -24.8 -
----------------------------------------------------------------------------
EARNINGS BEFORE
INTEREST AND TAXES 21.7 46.3 -53 111.7 135.5 -18
% of net sales 3.5 8.3 Â 5.4 7.2
Financing income and
expenses -9.5 -6.1 Â -29.9 -20.5
----------------------------------------------------------------------------
EARNINGS BEFORE TAXES 12.2 40.2 Â 81.8 115.0
Taxes -6.9 -9.1 Â -24.3 -24.1
----------------------------------------------------------------------------
NET RESULT 5.3 31.1 Â 57.5 90.9
----------------------------------------------------------------------------
Attributable to:
Equity holders of the parent
company 5.3 31.1 Â 57.5 90.8
Non-controlling interests - 0.0 Â - 0.1
Earnings per share, EUR 0.05 0.25 Â 0.48 0.71
Earnings per share, diluted,
EUR 0.05 0.25 Â 0.48 0.71
Adjusted average number of
shares in issue less own
shares, million    117.7 119.9
Adjusted average number of
shares in issue less own
shares,
diluted, million    118.1 120.1
Equity per share, EUR Â Â Â 6.43 7.03
ROCE, % *) Â Â Â 10.0 13.2
ROE, % Â Â Â 7.2 11.2
Average rates used:
EUR 1.00 = USD 1.2956 1.3500 Â 1.2846 1.3926
*) 12 months' rolling average
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
10-12/ 10-12/ 1-12/ 1-12/
 2012 2011 2012 2011
---------------------------------------------------------------------
Net result 5.3 31.1 57.5 90.9
Other comprehensive income
  Translation differences -9.7 12.5 -8.7 7.7
  Cash flow hedges -3.9 6.7 -19.3 17.3
  Income tax related to
  cash flow hedges 1.0 -1.7 5.0 -4.5
---------------------------------------------------------------------
Other comprehensive income,
net of tax -12.6 17.5 -23.0 20.5
---------------------------------------------------------------------
Total comprehensive income -7.3 48.6 34.5 111.4
---------------------------------------------------------------------
Total comprehensive income attributable to:
Equity holders of the parent
company -7.3 48.6 34.5 111.3
Non-controlling interests - 0.0 - 0.1
NET SALES BY BUSINESS SEGMENT
10-12/ 10-12/ Change 1-12/ 1-12/ Change
 2012 2011 % 2012 2011 %
--------------------------------------------------------------
Winter and Outdoor 402.8 375.0 7 1,221.2 1,137.6 7
Ball Sports 127.7 109.0 17 569.7 511.0 11
Fitness 88.0 72.9 21 273.1 232.2 18
--------------------------------------------------------------
Total 618.5 556.9 11 2,064.0 1,880.8 10
--------------------------------------------------------------
GEOGRAPHIC BREAKDOWN OF NET SALES
10-12/ 10-12/ Change 1-12/ 1-12/ Change
 2012 2011 % 2012 2011 %
--------------------------------------------------------
EMEA 305.3 273.8 12 962.7 917.6 5
Americas 224.8 205.4 9 834.1 742.1 12
Asia Pacific 88.4 77.7 14 267.2 221.1 21
--------------------------------------------------------
Total 618.5 556.9 11 2,064.0 1,880.8 10
--------------------------------------------------------
EBIT BY BUSINESS SEGMENT
10-12/ 10-12/ Change 1-12/ 1-12/ Change
 2012 2011 % 2012 2011 %
----------------------------------------------------------
Winter and Outdoor 23.3 45.0 -48 95.4 118.5 -19
Ball Sports -4.5 -0.7 Â 22.5 25.0 -10
Fitness 7.8 4.5 73 16.9 10.3 64
Headquarters -4.9 -2.5 Â -23.1 -18.3
----------------------------------------------------------
Total 21.7 46.3 -53 111.7 135.5 -18
----------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
10-12/ 10-12/ 1-12/ 1-12/
 Note 2012 2011 2012 2011
-----------------------------------------------------------------------
Earnings before interest and taxes  21.7 46.3 111.7 135.5
Adjustments to cash flow from
operating activities and depreciation  33.5 11.0 63.3 37.9
Change in working capital  69.0 34.5 -10.9 -97.6
-----------------------------------------------------------------------
Cash flow from operating activities
before financing items and taxes  124.2 91.8 164.1 75.8
Interest paid and received  -2.3 -7.2 -19.9 -20.5
Income taxes paid and received  -6.3 -6.7 -31.6 -24.7
-----------------------------------------------------------------------
Net cash flow from operating activities  115.6 77.9 112.6 30.6
Acquired operations  - -6.5 - -6.5
Sold operations  - - 1.1 5.3
Acquired non-controlling interests  - - -3.7 -
Capital expenditure on non-current
tangible and intangible assets  -18.9 -22.5 -49.2 -51.4
Proceeds from sale of tangible non-
current assets  0.0 0.1 11.0 0.6
-----------------------------------------------------------------------
Net cash flow from investing activities  -18.9 -28.9 -40.8 -52.0
Net cash flow after investing activities
(free cash flow) Â 96.7 49.0 71.8 -21.4
Repurchase of own shares  - -9.5 - -36.7
Interest on hybrid bond  - - -7.2 -7.2
Redemption of the hybrid bond 4 - - -60.0 -
Dividends paid 5 - - -38.9 -36.4
Change in debt and other financing
Items  -74.5 -37.4 98.9 94.9
-----------------------------------------------------------------------
Net cash flow from financing activities  -74.5 -46.9 -7.2 14.6
Cash and cash equivalents on
October 1/January 1 Â 121.5 75.6 78.8 84.7
Translation differences  -1.2 1.1 -0.9 0.9
Change in cash and cash equivalents  22.2 2.1 64.6 -6.8
-----------------------------------------------------------------------
Cash and cash equivalents on
December 31 Â 142.5 78.8 142.5 78.8
CONSOLIDATED BALANCE SHEET
December 31, December 31,
 Note  2012 2011
-------------------------------------------------------------------------
Assets
-------------------------------------------------------------------------
Goodwill  289.1 295.7
Other intangible non-current assets  211.4 214.5
Tangible non-current assets  162.9 157.8
Other non-current assets  106.4 99.6
Inventories and work in progress  336.7 359.7
Receivables  613.5 611.9
Cash and cash equivalents  142.5 78.8
-------------------------------------------------------------------------
Total assets 2 1,862.5 1,818.0
-------------------------------------------------------------------------
Shareholders' equity and liabilities
-------------------------------------------------------------------------
Shareholders' equity  758.9 829.4
Long-term interest-bearing liabilities  378.2 251.4
Other long-term liabilities  34.4 22.7
Current interest-bearing liabilities  198.6 219.0
Other current liabilities  445.6 463.1
Provisions  46.8 32.4
-------------------------------------------------------------------------
Total shareholders' equity and liabilities  1,862.5 1,818.0
-------------------------------------------------------------------------
Equity ratio, % Â 40.7 45.6
Gearing, % Â 57 47
EUR 1.00 = USD Â 1.3194 1.2939
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Fair Inves-
Fund Trans- value ted
Pre- for lation and unrest- Retai-
Share mi- Â own diffe- other ricted ned
capi- um sha- ren- reser- equity Hybrid ear-
 Note tal fund res ces ves reserve bond nings Total
----------------------------------------------------------------------------
Balance at
Jan. 1,
2011 Â 292.2 12.1 -5.6 -34.3 -5.6 151.5 60.0 317.3 787.6
Other
compre-
hensive
income:
Translation
differences     7.7     7.7
Cash flow
hedges      17.3    17.3
Income tax
related to
cash flow
hedges      -4.5    -4.5
Net result         90.8 90.8
Total
comp-
rehensive
income     7.7 12.8   90.8 111.3
Transact-
ions with
owners:
Repurch-
ase of
own
shares    -31.3      -31.3
Share-
based
incentive
programs         0.8 0.8
Interest on
hybrid
bond 4 Â Â Â Â Â Â Â -5.3 -5.3
Dividend
distribution 5 Â Â Â Â Â Â Â -36.3 -36.3
----------------------------------------------------------------------------
Balance at
Dec. 31,
2011 Â 292.2 12.1 -36.9 -26.6 7.2 151.5 60.0 367.3 826.8
Balance at
Jan. 1,
2012 Â 292.2 12.1 -36.9 -26.6 7.2 151.5 60.0 367.3 826.8
Other
compre-
hensive
income:
Translation
differences     -8.7     -8.7
Cash flow
hedges      -19.3    -19.3
Income tax
related to
cash flow
hedges      5.0    5.0
Net result         57.5 57.5
Total
comp-
rehensive
income     -8.7 -14.3   57.5 34.5
Transact-
ions with
owners:
Cancella-
tion of
own
shares    27.2     -27.2 0.0
Share-
based
incentive
programs    2.6   2.9  -1.8 3.7
Hybrid
bond 4 Â Â Â Â Â Â -60.0 -7.2 -67.2
Dividend
distribution 5 Â Â Â Â Â Â Â -38.9 -38.9
----------------------------------------------------------------------------
Balance at
Dec. 31,
2012 Â 292.2 12.1 -7.1 -35.3 -7.1 154.4 - 349.7 758.9
Total
Non- share-
cont- hold-
rolling ers'
inte- equ-
 Note rests ity
---------------------------------
Balance at
Jan. 1,
2011 Â 2.6 790.2
Other
compre-
hensive
income:
Translation
differences   7.7
Cash flow
hedges   17.3
Income tax
related to
cash flow
hedges   -4.5
Net result  0.1 90.9
Total
comp-
rehensive
income  0.1 111.4
Transact-
ions with
owners:
Repurch-
ase of
own
shares   -31.3
Share-
based
incentive
programs   0.8
Interest on
hybrid
bond 4 Â -5.3
Dividend
distribution 5 -0.1 -36.4
---------------------------------
Balance at
Dec. 31,
2011 Â 2.6 829.4
Balance at
Jan. 1,
2012 Â 2.6 829.4
Other
compre-
hensive
income:
Translation
differences   -8.7
Cash flow
hedges   -19.3
Income tax
related to
cash flow
hedges   5.0
Net result   57.5
Total
comp-
rehensive
income   34.5
Transact-
ions with
owners:
Cancella-
tion of
own
shares   0.0
Share-
based
incentive
programs   3.7
Hybrid
bond 4 Â -67.2
Dividend
distribution 5 Â -38.9
Other
change  -2.6 -2.6
---------------------------------
Balance at
Dec. 31,
2012 Â - 758.9
QUARTERLY BREAKDOWN OF NET SALES AND EBIT
 Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/
NET SALES 2012 2012 2012 2012 2011 2011 2011 2011
------------------------------------------------------------------
Winter and Outdoor 402.8 411.0 150.9 256.5 375.0 395.7 133.4 233.5
Ball Sports 127.7 121.9 146.5 173.6 109.0 106.7 136.3 159.0
Fitness 88.0 69.0 56.4 59.7 72.9 56.8 45.9 56.6
------------------------------------------------------------------
Total 618.5 601.9 353.8 489.8 556.9 559.2 315.6 449.1
------------------------------------------------------------------
 Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/
EBIT 2012 2012 2012 2012 2011 2011 2011 2011
------------------------------------------------------------------
Winter and Outdoor 23.3 86.8 -25.4 10.7 45.0 79.3 -15.1 9.3
Ball Sports -4.5 -2.6 9.7 19.9 -0.7 -1.1 9.1 17.7
Fitness 7.8 4.2 1.0 3.9 4.5 2.8 -0.3 3.3
Headquarters -4.9 -7.6 -5.1 -5.5 -2.5 -6.6 -4.6 -4.6
------------------------------------------------------------------
Total 21.7 80.8 -19.8 29.0 46.3 74.4 -10.9 25.7
------------------------------------------------------------------
THE NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The consolidated financial statements have been prepared in accordance with the
International Financial Reporting Standards(IFRS) approved for use in EU,
observing the IAS and IFRS standards and SIC and IFRIC interpretations in force
as of December 31, 2012.
Standards, interpretations and amendments adopted from the beginning of 2012:
The following new standards, interpretations and amendments have been adopted
when applicable: IFRS 7 (amendment) and the annual improvements. The amendments
did not have any material impact on the consolidated financial statements.
2. SEGMENT INFORMATION
Amer Sports has three business segments: Winter and Outdoor, Ball Sports and
Fitness.
The accounting policies for segment reporting do not differ from the Group's
accounting policies. The decisions concerning assessing the performance of
segments and allocation of resources to the segments are based on segments' net
sales and earnings before interest and taxes. The chief operating decision maker
of Amer Sports is the Executive Board.
There were no intersegment business operations during the reported periods.
Earnings Financing
before income Earnings
interest and and before
 Net sales taxes expenses taxes Assets
---------------------------------------------------------------------
1-12/2012
Winter and Outdoor 1,221.2 95.4 Â Â 935.4
Ball Sports 569.7 22.5 Â Â 376.9
Fitness 273.1 16.9 Â Â 259.4
---------------------------------------------------------------------
Segments, total 2,064.0 134.8 Â Â 1,571.7
---------------------------------------------------------------------
Unallocated items*) Â -23.1 -29.9 Â 290.8
---------------------------------------------------------------------
Group total 2,064.0 111.7 -29.9 81.8 1,862.5
---------------------------------------------------------------------
1-12/2011
Winter and Outdoor 1,137.6 118.5 Â Â 960.0
Ball Sports 511.0 25.0 Â Â 384.4
Fitness 232.2 10.3 Â Â 253.8
-----------------------------------------------------
Segments, total 1,880.8 153.8 Â Â 1,598.2
-----------------------------------------------------
Unallocated items*) Â -18.3 -20.5 Â 219.8
-----------------------------------------------------
Group total 1,880.8 135.5 -20.5 115.0 1,818.0
-----------------------------------------------------
*) Earnings before interest and taxes include income and expenses of corporate
headquarters.
GEOGRAPHIC BREAKDOWN OF NET SALES
 1-12/ 1-12/
2012 2011
----------------------------
EMEA 962.7 917.6
Americas 834.1 742.1
Asia Pacific 267.2 221.1
----------------------------
Total 2,064.0 1,880.8
----------------------------
3. DERIVATIVE FINANCIAL INSTRUMENTS
December December
 31, 2012 31, 2011
----------------------------------------------
Nominal value
Foreign exchange derivatives 823.1 922.6
Interest rate swaps 140.0 50.0
Cross currency swaps 69.9 56.1
Fair value
Foreign exchange derivatives 7.1 2.0
Interest rate swaps -4.7 -3.1
Cross currency swaps 0.8 0.5
4. HYBRID BOND
On March 12, 2012 Amer Sports redeemed the EUR 60 million hybrid bond issued on
March 12, 2009.
5. DIVIDENDS
Dividends distributed in March 2012 by Amer Sports to its shareholders and
minority shareholders of its subsidiaries amounted to EUR 38.9 million relating
to the year ending on December 31, 2011 (2011: 36.4). Dividends distributed to
the shareholders of Amer Sports Corporation were EUR 0.33 per share and in total
EUR 38.9 million (2011: EUR 0.30 per share and in total EUR 36.3 million).
6. CONTINGENT LIABILITIES AND SECURED ASSETS
December December
 31, 2012 31, 2011
---------------------------------------------------------------
Guarantees 23.1 21.4
Liabilities for leasing and rental agreements 152.4 123.2
Other liabilities 43.6 33.8
There are no guarantees or contingencies given for the management of the
company, the shareholders or the associated companies.
7. ONGOING LITIGATIONS
The Group has extensive international operations and is involved in a number of
legal proceedings, including product liability suits. The Group does not expect
the outcome of any legal proceedings currently pending to have materially
adverse effect upon its consolidated results or financial position.
8. SEASONALITY
Although Amer Sports operates in a number of sporting goods segments during all
four seasons, its business is subject to seasonal fluctuations. Historically,
the third and fourth quarters of a financial year have been the strongest
quarters for Amer Sports in terms of both net sales and profitability, mainly
because sales of winter sports equipment ahead of the winter season typically
take place during the third and fourth quarters. The summer season for ball
sports balances seasonality to a certain extent, as the strongest quarters for
the Ball Sports segment are the first and second quarters. Usually the net cash
flow from operating activities is very strong in the first quarter when the
income from winter sports equipment realizes. Especially during the third
quarter, the net cash flow from operating activities is tied up in working
capital.
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
Amer Sports Corporation Financial Statements Bulletin 2012:
http://hugin.info/3020/R/1674543/545287.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Amer Sports Oyj via Thomson Reuters ONE
[HUG#1674543]