2019 ANTA Investor Day ANTA Group Opening Speech
James Zheng Executive Director and President of ANTA Group Executive Director of Amer Sports
11 December 2019 ANTA and Amer Sports Jointly Establish World Class Sportswear Group
2 ANTA Group Maintains Rapid Growth this Year
500 人民币亿元RMB100 mn Retail Sales>50 billion （Excl. Amer） 450 2018 Revenue reached RMB24.1 billion, with net profit at RMB4.1 billion Revenue>30 400 billion Annually sells approximately 70 million pairs of sneakers （Excluding 350 and 100 million units of sports apparel Amer） 300 Over 12,000 stores 250 Market capitalization approximate to HKD200 billion, 200 reaching a historical high
150
100 0.7 50 billon
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
3 Mission and Vision of ANTA Group
Mission Vision
To bring the transcendent sports To become a respected world- spirit into everyone’s daily life. class, multi-brand sportswear group.
4 Strategic Chart of ANTA Group
To become a respected world-class, multi-brand sportswear group
Performance Sports Brand Group Fashion Sports Brand Group Outdoor Sports Brand Group
ANTA ANTA AntapluS Sprandi FILA Kingkow DESCENTE KOLON Amer Sports Kids SPORT
To become an China’s top To become the top The brand-new The most well- Strategic planning International high- Mid-to-high-end Top brand of High-end international brand professional brand of global fashion sportswear received end sports fashion kidswear brand cross-training, female with largest market sportswear brand children’s brand launched by comfortable Organization adjustment brand sportswear and skiing share in China’s sportswear ANTA Group athletic footwear outdoor sportswear market Business integration
Online retail platforms (leading position) + Offline retail platform (sales model integration and implementation, integration of new brands)
Supply chain platform（sales model integration and implementation）
Enhancing the Group’s core capacity Improvement of organization Enhancing IT and big data capacity
5 Multi-Brand, Omni-Channel, Full Coverage Strategy
Multi-brand Full consumer coverage Covering all sales channels
High income 6% street store mall ＞40,000/month 26% Mid-high income 15,000-40,000/month 53% department Mid-income ecommerce 30,000-15,000/month store 15% Low income ＜3,000 outlets
6 Four Rationales for ANTA’s Acquisition of Amer Sports
“To make ANTA become a global sportswear Fitting ANTA’s “Multi- company” brand ”strategy Complementary to ANTA Group’s As an important step towards product categories globalization
Huge rooms for growth in Professional sports China brand with high quality
The China business of Amer Sports Leading position in the respective only contributed 5% of revenue now market segments
7 Amer Sports is an International Sportswear Company
Americas accounted for global EMEA accounted for global Asia Pacific accounted for global sales* sales sales 42% 43% 15% Brands headquartered in Europe
Brands headquartered in North America
EUD 2.8 Sales network covered Key Figures ~10 000 employees 34 billion countries net revenue in 2018
Note: 2018 revenue amount 8 Amer Sports as Global Leader in the Niche Markets
1 Amer Sports ranks top in the following market segments Trail running and Winter Sports gear Equipment
Tennis, Baseball and Diving American football watches
Amer Sports ranks second in the Amer Sports ranks third in the following market segments following market segments 2 Snowboard High-end outdoor apparel 3
Sports Basketball watches
9 Amer Sports’ Situation Prior to the Acquisition
1 Good brands Professionalism and good reputation
2 Small scale No single brand with revenue over EUR 1 billion
3 Slow growth Consistent single-digit growth in the past decade
4 Wholesale Wholesale-focus business model with a low DTC portion focus
Scattered 5 shareholdings Diversified shareholdings without major shareholders 10 Review of ANTA and Amer’s Collaboration
The consortium received the Amer Sports received letter Amer Sports’ new required approval for the of intent from the Chinese board of directors is completion of the Tender consortium led by ANTA established Offer
2018.09 2018.12 2019.02 2019.03 2019.04 2019.08
The consortium made a voluntary recommended cash Tender Offer for all Consortium announced the Amer Sports Corporation applied for of the issued and outstanding shares in completion of the acquisition of delisting of its shares from Nasdaq Amer Sports with the offer price at EUR Amer Sports Helsinki, effective on 4 Sep 40 per share; ANTA holds 58% stakes on the acquisition structure
During the acquisition, ANTA Group and other members of the consortium shared the same vision and worked together to successfully complete the acquisition
11 In April 2019, Amer’s new Board was established
12 The Consortium Led by ANTA Adopted a Series of Proactive New Measures after the Acquisition Refresh on Amer’s Growth Strategy 1 With the assistance of BCG, consortium and management worked together to develop Amer’s 5-year growth strategy
Revamp GTM Approach 2 Restructured the GTM organizations globally, transforming from GTM for a brand portfolio to GTM with a single focus
Focus on Softgoods 3 Focus on the development of softgoods, aim to achieve >50% mix of revenue in future
Retail Transformation 4 Accelerated the transformation from wholesale model to retail model, DTC revenue mix to reach 30% in future 13 The Consortium Led by ANTA Adopted a Series of Proactive New Measures after the Acquisition (Cont’d) Accelerating retail IT system update 5 Integrate ANTA Group resources to accelerate global retail SAP & POS system update
Accelerate the China market 6 Revenue from China market will increase from 5% of total in last year to 15% in the future New management incentives 7 New management incentive scheme with a focus on long-term value creation
Strategic guidance 8 New board of directors appointed by ANTA Holdings’ consortium will provide strategic guidance to Amer Sports’ management
14 Amer Sports’ Business and Management have Maintained Stable and Good Development After the Acquisition
Maintained stable and good operations Experienced management after the acquisition
HEIKKI TAKALA AMER SPORTS President & CEO LEADERSHIP TEAM 10 Years (# of years = tenure at Amer/Brand) Group functions Brand Presidents CEO and his key management team continue to lead the company JUSSI MICHAEL JON SIITONEN WHITE HOERAUF Finance Salomon Arc’teryx 10 Years 14 Years 7 Years Senior executives and core personnel of DELANEY SARA JOE SCHWEITZER MOLNAR DUDY the brand stay in their positions Retail Peak Performance Wilson New recruit 3 Years 24 Years SEBASTIAN MICHAEL ROB Suppliers and customers maintain stable LUND SCHINEIS BARKER HR WSE / Atomic Precor partnerships 3 Years 26 Years 24 Years
WILHELM HEIKKI KERL NORTA Operations Suunto 15 Years 4 Years
15 Great Collaboration between Amer’s Board and Management Team
Positive Feedback Mechanism
Management formulates growth strategy The Board sets clear aspirations and based on the directions, and are
The picture can't be displayed. objectives The picture can't be displayed. supported by the Board
Strengthened mutual trust by Pre-acquisition evaluation on the establishing good communication
The picture can't be displayed. business and people validated The picture can't be displayed. mechanism
16 ANTA and Other Members of Consortium Will Help Amer to Achieve Greater Success
Long-term长期稳健的往绩记录 stable track record Strong强大的品牌组合 brand portfolio Unique and Superb优秀的运营管理能力 operational management capability complementary capability Exceptional“工匠”技术和一流设计 craftsmanship combination and designs All-rounded财团提供全方位支持 support from consortium
Strong executional Mature优秀成熟的团队 and strong 铁军文化，强执行力capabilities management team
Proportion of the Proportion of the business business China market will 2018 Future be one of the major ~5 ~15% % growth driver
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