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Amer Sports Oyj : Amer Sports Corporation Financial Statements Bulletin 2012



 Amer Sports Oyj : Amer Sports Corporation Financial Statements Bulletin 2012

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 EUR 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          136.5   135.5    1
EBIT % excluding non-
recurring items            7.5    8.3                 6.6     7.2
Non-recurring items**)   -24.8      -               -24.8       -
EBIT total                21.7   46.3  -53          111.7   135.5  -18
EBIT %                     3.5    8.3                 5.4     7.2
Financing income and
expenses                  -9.5   -6.1               -29.9   -20.5
Earnings before taxes     12.2   40.2                81.8   115.0
Net result                 5.3   31.1                57.5    90.9
Earnings per share, EUR   0.05   0.25                0.48    0.71
Net cash flow after
investing activities      96.7   49.0                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                                              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
+44 (0)20 3364 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 +44 (0)20 3427 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 EUR 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 EUR 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 EUR 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 EUR 198.6 million and long-term debt of EUR 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          113.8   118.5     -4
EBIT % excluding
non-recurring items    10.4   12.0                   9.3    10.4
Non-recurring items    18.4      -                  18.4       -
EBIT total             23.3   45.0    -48           95.4   118.5    -19
Personnel, Dec 31                                  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 EUR 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 EUR -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                28.0  25.0     12
EBIT % excluding
non-recurring items    0.8                        4.9   4.9
Non-recurring items    5.5      -                 5.5     -
EBIT total            -4.5   -0.7                22.5  25.0    -10
Personnel, Dec 31                               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         17.0  10.3     65
EBIT % excluding
non-recurring items    9.0    6.2                 6.2   4.4
Non-recurring items    0.1      -                 0.1     -
EBIT total             7.8    4.5     73         16.9  10.3     64
Personnel, Dec 31                                 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 EUR 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 Åsander                                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 Åsander 

  * 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        -1,163.4 -1,063.4
GROSS PROFIT                    258.9  235.9     10    900.6    817.4     10
License income                    2.0    2.3             7.5      8.7
Other operating income            1.3    2.6             6.0      5.4
R&D expenses                    -20.7  -20.6           -72.2    -64.2
Selling and marketing expenses -147.1 -138.3          -527.8   -475.9
Administrative and other
expenses                        -47.9  -35.6          -177.6   -155.9
Non-recurring expenses          -24.8      -           -24.8        -
EARNINGS BEFORE
INTEREST AND TAXES               21.7   46.3    -53    111.7    135.5    -18
% of net sales                    3.5    8.3             5.4      7.2
Financing income and
expenses                         -9.5   -6.1           -29.9    -20.5
EARNINGS BEFORE TAXES            12.2   40.2            81.8    115.0
Taxes                            -6.9   -9.1           -24.3    -24.1
NET RESULT                        5.3   31.1            57.5     90.9
Attributable to:
Equity holders of the parent
company                           5.3   31.1            57.5     90.8
Non-controlling interests           -    0.0               -      0.1
Earnings per share, EUR          0.05   0.25            0.48     0.71
Earnings per share, diluted,
EUR                              0.05   0.25            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                                   6.43     7.03
ROCE, % *)                                              10.0     13.2
ROE, %                                                   7.2     11.2
Average rates used:
EUR 1.00 = USD                 1.2956 1.3500          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         22.5  25.0    -10
Fitness               7.8    4.5     73  16.9  10.3     64
Headquarters         -4.9   -2.5        -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)                                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                            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                                    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, %                                         40.7         45.6
Gearing, %                                                57           47
EUR 1.00 = USD                                        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-   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              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                                                 -5.3  -5.3
Dividend
distribution    5                                                -36.3 -36.3
Balance at
Dec. 31,
2011              292.2 12.1 -36.9  -26.6    7.2   151.5   60.0  367.3 826.8
Balance at
Jan. 1,
2012              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                                         -60.0   -7.2 -67.2
Dividend
distribution    5                                                -38.9 -38.9
Balance at
Dec. 31,
2012              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                  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           -5.3
Dividend
distribution    5    -0.1  -36.4
Balance at
Dec. 31,
2011                  2.6  829.4
Balance at
Jan. 1,
2012                  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          -67.2
Dividend
distribution    5          -38.9
Other
change               -2.6   -2.6
Balance at
Dec. 31,
2012                    -  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                      935.4
Ball Sports             569.7         22.5                      376.9
Fitness                 273.1         16.9                      259.4
Segments, total       2,064.0        134.8                    1,571.7
Unallocated items*)                  -23.1     -29.9            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               960.0
Ball Sports           511.0  25.0               384.4
Fitness               232.2  10.3               253.8
Segments, total     1,880.8 153.8             1,598.2
Unallocated items*)         -18.3 -20.5         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

------------------------------------------------------------------------------

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
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