ball sports

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1 Ball Sports Focus on profitable growth Chris Considine, President

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1

Ball Sports

Focus on profitable

growth

Chris Considine,President

Disclaimer

Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements.

Amer Sports assumes no responsibility to update any of the forward-looking statements contained herein. No representation or warranty, express or implied, is made or given by or on behalf of Amer Sports or its employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.

Contents

• Brand / business position• Priorities and building blocks• Case: Golf• Summary

3

Racquet Sports47 %

Team Sports39%

Golf14%

Sales by Business Area

Americas63 %

EMEA23 %

APAC14 %

Sales by Region

Ball Sports

• Main sports: Baseball, Softball, American Football, Basketball, Tennis, Badminton, Squash and Golf

• Wilson is behind more winning moments in sports than any other brand in the world

• Strong presence in 10 equipment categories

• Market Challenges– Participation levels stable or in

some cases declining– Market share growth game

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010H1

H2 H1 EBIT-%MEUR EBIT-%

2009

Group development priorities

• Clear portfolio roles and synergies, integrated company

• Grow faster in softgoods• Win with consumers• Win in go-to-market• Operational excellence

77

8

Group development priorities in Ball Sports: Focus on profitable growth

• Clear portfolio roles and synergies, integrated company• Fully integrated• Category based operations

• Grow faster in softgoods• Expanding into white spaces (today: Wilson

tennis only)• Win with consumers

• Regional consumer/marketing set up• New products and innovations

• Win in go-to-market• Strengthen commercial fundamentals

• Operational excellence

Growth from softgoods, DeMarini and adjacencies

0102030405060708090

100

%

Total TennisMarket

TennisHardgoods

TennisSoftgoods

Wilson Opportunity

18% 31%

6%

$1.2

bill

ion

$580

mill

ion

$606

mill

ion

Growth opportunity in softgoods, e.g. tennis

Opportunity in DeMarini: Creating business and brand value

In-Store/Sales Marketing

In-Store Banners

T-Shirts for SalesAssociates

ConsumerPosters

1

Team Sports Protectives

Adjacencies – Football, Baseball

Win with consumers

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Strong pipeline of new products and innovations• Uncovering unmet needs → Drive share growth• Establish technology position at Premium/Commercialize• Technology platforms

17

D-FyDeMarini Basketball Half/Half Shaft BLX

• Voodoo

- Fastest growing Baseball Bat

• Game Basketballs- Patented technologies

• Half/Half Golfshaft• Basalt = Better Feel

Win in go-to-market

AmericasEMEA

Asia Pacific

22%

14%

5%53%

6%

Current position globally

Net sales geographically in 2009

Focus in geographical expansion• Asia/China

– Great momentum in Korea– China footprint growing– Main focus on Racquet Sports

• EMEA– Organic growth in Tennis, Golf– Opportunities in Team Sports

• Latin America– Continued growth

20

Opportunities in channels

• Racquet/Team– Key focus on Sporting Goods Retailers

• Targeted programs by customer– Maintain/enhance leadership position– Expand sales in specialty through softgoods/adjacencies

• Golf– Focus on Top 30 Global Customers

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Operational excellence22

How to secure the margins and profitability

• Overall Management Approach– Detailed Gross Profit initiative– 80/20 – Customers & SKU’s

• Sourcing– Enable our vendor partners

through better design– Leverage Amer Sports sourcing

platform– R&D efforts aligned with

profitability targets

• Inventory Management Programs– DSI Programs in place– Disciplined “Open to Buy”

Program– SKU Reduction Program

• Improve Mix– Targets, goals, compensation

programs aligned

23

Case Golf

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Golf: Under review

• Historical success, struggling in recent years

• Prove the attractiveness: deliver target profitability

• Manage the product/business portfolio: exit unprofitable areas, more mix to Premium Wilson Staff

• Expanding the footprint in EMEA/US markets, focus on large customers

• R&D Platforms are working: award winning products

• Positioning is clear: “More majors won”, “Own the Fairway”

Summary

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Group development priorities in Ball Sports: Focus on profitable growth

• Clear portfolio roles and synergies, integrated company• Fully integrated• Category based operations

• Grow faster in softgoods• Expanding into white spaces (today: Wilson

tennis only)• Win with consumers

• Regional consumer/marketing set up• New products and innovations

• Win in go-to-market• Strengthen commercial fundamentals

• Operational excellence