Amer-Sports-Annual-Report-2008.Pdf
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CONTENT Amer Sports in brief and key fi gures . .1 CEO’s review . .8 Strategy . .12 Mission and values. .14 Vision. .15 Financial targets . .16 Global landscape . .18 Business segments Winter and Outdoor . .24 Ball Sports . .34 Fitness . .42 R&D. .46 Award winning products . .48 Sales and channel management . .54 Supply chain and IT . .56 Human resources . .58 Social responsibility . .62 Board of Directors report and fi nancial statements . .68 Corporate governance . .136 Board of Directors . .146 Executive Board . .148 Amer Sports key brands . .152 Information for investors . .212 Contact information . .213 NET SALES, EUR MILLION EBIT, EUR MILLION 1,732 *) 1,793 1,652 1,577 117.1*) 120.2 100.5 92.2**) 1,036 78.9 04 05 06 07 08 04 05 06 07 08 *) Pro forma *) Pro forma **) Before non-recurring items EQUITY RATIO, % GEARING, % 56 121 112 115 105 34 32 31 31 29 04 05 06 07 08 04 05 06 07 08 NET SALES BY NET SALES BY BUSINESS SEGMENT GEOGRAPHICAL SEGMENT 1 Winter and Outdoor 55% 1 EMEA 46% 2 Ball Sports 31% 2 Americas 43% 3 Fitness 14% 3 Asia Pacific 11% 123 123 1 Amer Sports is the world’s leading sports equipment company We offer technically-advanced products that improve the performance of sports participants. Our major brands include Salomon, Wilson, Precor, Atomic, Suunto, Mavic and Arc’teryx. The company’s business is balanced by our broad portfolio of sports and our presence in all major markets. Amer Sports was founded in 1950 in Finland. It has KEY BRANDS: been listed on the NASDAQ OMX Helsinki Ltd since • Salomon – the mountain sports company 1977. Amer Sports Corporation had a turnover of (www.salomonsports.com) 1.6 billion euros and a market capitalization of 0.4 • Wilson – the world’s leading ball sports brand billion euros in 2008. At the end of the year, Amer (www.wilson.com) Sports employed 6,338 people. • Precor – the high-end fi tness equipment pro- vider for the home and commercial environ- GLOBAL BRANDS ment (www.precor.com) Our business is based on strong global brands. • Atomic – the world’s leading manufacturer of Our brands are trusted by consumers world-wide. alpine skis (www.atomicsnow.com) We earn their trust by setting the standard of in- • Suunto – the leading manufacturer of sports novation and usability in every sport we participate precision instruments for a variety of training, in. We offer advanced, performance-oriented prod- diving and outdoor sports (www.suunto.com) ucts with attention to detail, high quality and func- • Mavic – the creator of leading innovative tional dependability. technologies for sport cycling products and services (www.mavic.com) • Arc’teryx – the developer of the most innova- tive and superbly crafted packs, harnesses and “Amer Sports mountain apparel (www.arcteryx.com) Corporation had a turnover of EUR 1.6 billion in 2008.” 2 BROAD RANGE OF SPORTS global presence provide balance for our business- Amer Sports provides equipment, technical ap- es as seasons turn and the popularity of individual parel and footwear for a wide variety of athletic sports fl uctuate. activities: winter and summer, indoor and outdoor, individual and team, women and men, adults and LOCAL PRESENCE AND EXPERTISE children. We focus on products that help athletes The Amer Sports sales organization allows us to achieve the best results and most enjoyment from effectively bring our new products to market al- their sport. Our range of sports includes ten- most simultaneously around the globe. Our sales nis, badminton, golf, American football, soccer, companies have experience and specialized exper- baseball, softball, basketball, alpine skiing, cross- tise for every type of sport. country skiing, snowboarding, fitness training, cy- Furthermore, our local personnel know their cling, running, hiking and diving. own markets and the preferences of sports en- Amer Sports is a year-round, full-service sup- thusiasts in their territories. First-class customer plier. Our broad range of sports equipment and service and reliable, efficient and timely supply KEY INDICATORS Pro forma EUR million 2008 2007 Change % 2006 2005 *) 2004 Net sales 1,576.6 1,652.0 –5 1,792.7 1,732.0 1,035.9 Gross profi t 633.0 664.4 –5 697.4 684.4 435.8 Earnings before non-recurring items 78.9 92.2 –14 120.2 117.1 100.5 Non-recurring items - –42.7---- EBIT 78.9 49.5 59 120.2 117.1 100.5 % of net sales 5.0 3.0 6.7 6.8 9.7 Financing income and expenses –33.3 –24.9 –23.6 –24.0 –3.5 Earnings before taxes 45.6 24.6 85 96.6 93.1 97.0 Net result, continuing operations 34.0 18.5 84 70.5 62.4 68.8 Net result, discontinued operations - - - - 14.0 Net result 34.0 18.5 84 70.5 62.4 82.8 Earnings per share, continuing operations, EUR 0.47 0.25 - 0.98 0.87 0.96 Earnings per share, excluding non-recurring items, EUR, - 0.70 - - - - Return on shareholders’ equity (ROE), % 6.7 3.5 12.9 15.1 18.7 Equity ratio, % 30.6 31.0 33.6 31.8 55.5 Personnel at year end 6,338 6,465 –2 6,553 6,667 4,066 For a complete set of 2008 key figures, see page 78. Calculation of key indicators, see page 116. *) In income statement and earnings per share figures Salomon has been accounted for as from January 1, 2005. Stock exchange releases and notifications are available on the company’s website at www.amersports.com 3 chain management are core to the Amer Sports strategy, enabling us to continue to build on strong relationships with our customers and further strengthen our market-leading position. COLLABORATION WITH RETAIL AND ATHLETES We are continuously developing our operations in collaboration with our retail partners. The Amer Sports product offering and services ensure opti- mal efficiency in the sell-through process. In-depth know-how in each of our sports, together with a deep understanding of the consumer, are the keys to bringing innovative new products to market that outperform our competitors. NET SALES BY BUSINESS SEGMENTS Change Change EUR million 2008 2007 % %*) 2006 Winter and Outdoor 860.8 830.1 4 5 947.5 Ball Sports 495.5 530.9 –7 –1 569.6 Fitness 220.3 291.0 –24 –20 275.6 Total 1,576.6 1,652.0 –5 –1 1,792.7 *) In local currency terms EBIT BY BUSINESS SEGMENTS % of net % of net % of net EUR million 2008 sales 2007 sales 2006 sales Winter and Outdoor 41.1 5 20.9 3 47.2 5 Ball Sports 37.0 7 48.2 9 54.6 10 Fitness 3.8 2 37.2 13 34.8 13 Headquarters –3.0 - –14.1 - –16.4 - 78.9 5 92.2 6 120.2 7 Non-recurring expenses related to the reorganization of Winter Sports Equip- ment business area - –42.7 - Total 78.9 5 49.5 3 120.2 7 GEOGRAPHIC BREAKDOWN OF NET SALES Change Change EUR million 2008 2007 % %*) 2006 Americas 677.8 774.1 –12 –7 815.7 EMEA 723.0 704.9 3 4 781.8 Asia Pacifi c 175.8 173.0 2 0 195.2 Total 1,576.6 1,652.0 –5 –1 1,792.7 *) In local currency terms 4 AMER SPORTS CORPORATION BUSINESS SEGMENTS WINTER AND OUTDOOR BALL SPORTS FITNESS BUSINESS AREAS Winter Sports Equipment Racquet Sports Fitness Equipment AND BRANDS Salomon and Atomic Wilson Precor Apparel and Footwear Team Sports Salomon and Arc´teryx Wilson Cycling Golf Mavic Wilson Sports Instruments Suunto GLOBAL PRESENCE ACROSS ALL MARKETS OPERATION HEADQUARTERS Sales and supply chain HQ Helsinki, Finland Suunto Arc´teryx Mavic Atomic Precor Salomon Wilson AMERICAS EMEA ASIA PACIFIC North, South Europe, Middle East including Japan and Central America and Africa and Australia 5 Amer Sports - a sporting goods industry leader We bring stability and balance to a business where product development cycles are relatively long and the market is still relatively fragmented, forming a strong base for the continued development of our brands What we bring to the table from the perspective of our stakeholders Shareholder Consumer Trade Balanced business not Global well-known Portfolio of sports as vulnerable to shifts quality brands with products, effi cient and trends, long-term the best products for relationship, better stability athletes of every level service and supply chain management, stability and scale Brand Supplier Employees Business development, Effi ciency, strength and An employer to be fi nancial stability, stability in partnership proud of, strong team common platforms, and scale spirit, a respectful and effi ciency, global reach, inspiring place to work local expertise 6 Amer Sports history in brief Amer Sports was established in 1950. During the past decade, Amer Sports has undergone structural changes and divested its non-core activities, and focuses now on sporting goods. 2005 Amer Sports acquired Salomon and the family 1987 Amer Group acquired Time/system. Publishing of brands Mavic, Bonfi re, Arc’teryx, and Cliché. business was divested in 1997. The combined business created a leading global 1985 Amer Group acquired a majority holding sports equipment company. in Marimekko, a Finnish design and textile 2004 Amer Group Plc changed its offi cial name into company in the fi elds of interior decoration Amer Sports Corporation. and ready-to-wear clothing. The company was 2004 Amer Group withdrew from its tobacco divested in 1991. business as Philip Morris agreed to buy back 1984 Amer Group acquired a majority holding in the exclusive right Amer Tobacco Ltd holds to Korpivaara, the oldest and largest importer of produce and sell Philip Morris cigarettes in cars in Finland.