On Holding Ag · NYSE:ONON
On — Investor Day (October 2023)
137 slides from On's investor day presentation, Oct 4, 2023
Slide 1: Investor Day
On Investor Day 2023 Investor Day October 4, 2023 1
Slide 2: Disclaimer
Disclaimer On Investor Day 2023 Forward-Looking Statements This presentation includes estimates, projections, statements relating to the business supply chain disruptions, inflation and increased costs in supplies, goods and transportation; plans, objectives, and expected operating results of On Hol
Slide 3: On Investor Day 2023
On Investor Day 2023 3
Slide 4: Celebrating ten years of partnership
Celebrating ten years of partnership On Investor Day 2023 4
Slide 5: Agenda
Agenda On Investor Day 2023 < < Dream On. Market Approach Marc & Martin Amanda, Britt & Rebecca < < People & Culture Financial Ambitions Bianca & Noa Martin & Sam < < Brand Closing Remarks Alex Marc & Martin < < Innovation & Product Q&A Caspar, David, Gerald & Thilo Britt, Marc & Martin < Break 5
Slide 6: Dream On.
On Investor Day 2023 Dream On. Martin Hoffmann Marc Maurer Co-CEO & CFO Co-CEO 6
Slide 7: On Investor Day 2023
On Investor Day 2023 7
Slide 8: Added CHF 1bn Net Sales since the IPO
On Investor Day 2023 Added CHF 1bn Net Sales since the IPO 8
Slide 9: Numerous wins on the big stages
On Investor Day 2023 Numerous wins on the big stages 9
Slide 10: We have executed on our growth strategies
Growth strategies On Investor Day 2023 We have executed on our growth strategies Grow brand awareness Expand our geographic Leverage innovation Continue to drive and our community footprint through controlled, leadership to broaden operational excellence multi-channel growth product portfolio 10
Slide 11: We have executed on our growth strategies
Growth strategies On Investor Day 2023 We have executed on our growth strategies Grow brand awareness Expand our geographic Leverage innovation Continue to drive and our community footprint through controlled, leadership to broaden operational excellence multi-channel growth product portfolio 11
Slide 12: We've considerably increased brand awareness in focus locations
Grow brand awareness and our community On Investor Day 2023 Switzerland Austria Germany We’ve considerably 47% 24% 15% increased brand awareness in focus locations, with big Japan USA UK opportunities ahead 12% 9% 6% London 10% France Australia 6% 4% Source: On Brand Survey Note: As of Q3 2023; UK f
Slide 13: We are increasing our market share within our core communities
On Investor Day 2023 We are increasing our market share within our core communities… On market share on key running routes in the US ~7% ~9% ~12% ~15% New York San Dallas Miami Francisco Source: On proprietary Run Count analysis 13
Slide 14: …and building a brand with cultural relevance
Grow brand awareness and our community On Investor Day 2023 …and building a brand with cultural relevance 14
Slide 15: We have executed on our growth strategies
Growth strategies On Investor Day 2023 We have executed on our growth strategies Grow brand awareness Expand our geographic Leverage innovation Continue to drive and our community footprint through controlled, leadership to broaden operational excellence multi-channel growth product portfolio 15
Slide 16: Controlled, multi-channel growth
Expand our geographic footprint through controlled, multi-channel growth On Investor Day 2023 Controlled, multi-channel growth 35% H1-23 DTC Net Sales Wholesale 66% Net Sales CAGR 65% Net Sales CAGR LTM H1’21 vs. LTM H1’21 vs. LTM H1’23 65% LTM H1’23 H1-23 Net Sales 16
Slide 17: Broad-based momentum and growth
Expand our geographic footprint through controlled, multi-channel growth On Investor Day 2023 +27% +103% Germany China 2yr CAGR 2yr CAGR +82% +87% United States United Kingdom 2yr CAGR +74% 2yr CAGR Japan 2yr CAGR +699% +39% United Arab Emirates Broad-based Australia 2yr CAGR 2yr CAGR momentum and g
Slide 18: While continuing to build our global presence
Expand our geographic footprint through controlled, multi-channel growth On Investor Day 2023 While continuing to build our global presence In-house conversion since IPO New country since IPO 18
Slide 19: Building more intimate customer relationships through on.com
Expand our geographic footprint through controlled, multi-channel growth On Investor Day 2023 Building more intimate customer relationships through on.com Website Visits Members +129% 9x YTD‘23 vs. YTD‘21 Increase since the IPO 19
Slide 20: Expand our geographic footprint through controlled, multi-channel growth
Expand our geographic footprint through controlled, multi-channel growth On Investor Day 2023 2x 2x 22x NY, Williamsburg, London, UK Tokyo, Japan USA Own Retail Stores expected by end of 2023 20
Slide 21: Establishing the On brand with the most credible partners
Expand our geographic footprint through controlled, multi-channel growth On Investor Day 2023 Establishing the On brand with the most credible partners Note: Logos denote new partnerships since IPO 21
Slide 22: We have executed on our growth strategies
Growth strategies On Investor Day 2023 We have executed on our growth strategies Grow brand awareness Expand our geographic Leverage innovation Continue to drive and our community footprint through controlled, leadership to broaden operational excellence multi-channel growth product portfolio 22
Slide 23: Innovating in performance and sustainability
Leverage Innovation Leadership to Broaden Product Portfolio On Investor Day 2023 Innovation Innovating in Performance in & Sustainability performance… …and sustainability 23
Slide 24: Broadening the product portfolio with 7 key franchises
Leverage innovation leadership to broaden product portfolio On Investor Day 2023 Broadening the product Tennis Training PAD Running portfolio with 7 key franchises each contributing over 5% to our net sales 24
Slide 25: We have executed on our growth strategies
Growth strategies On Investor Day 2023 We have executed on our growth strategies Grow brand awareness Expand our geographic Leverage innovation Continue to drive and our community footprint through controlled, leadership to broaden operational excellence multi-channel growth product portfolio 25
Slide 26: Delivering a premium customer interaction through conscious outsourcing and automation
Continue to drive operational excellence On Investor Day 2023 Delivering a premium customer interaction through conscious outsourcing and automation 26
Slide 27: Building key technological capabilities to power our growth
Continue to drive operational excellence On Investor Day 2023 Building key technological capabilities to power our growth 27
Slide 28: Empowering premium experiences and speed with a scalable, automated distribution infrastructure
Continue to drive operational excellence On Investor Day 2023 On 3PL Manually-operated facility On 3PL Semi- or fully automated facility [until 2026] Southampton (merging GXO Q1 2024) Toronto Luxembourg (until Q2) 2026 Tessenderlo Zurich Zurich Returns Centre Tokyo Los Angeles Atlanta (until Q1 2025
Slide 29: Growing our global sourcing footprint responsibly
Continue to drive operational excellence On Investor Day 2023 Growing our global sourcing footprint responsibly 29
Slide 30: LTM Q2-23 Net Sales, Gross Profit and Adj. EBITDA
On Investor Day 2023 Net Sales Gross Profit Adj. EBITDA margin margin LTM Q2-23 1.56bn 58.5% 15.5% CHF >65% >68% >72% Net Sales Gross Profit Adj. EBITDA CAGR CAGR CAGR Net Sales Gross Profit Adj. EBITDA LTM Q2-21 569m margin margin CHF 56.6% 14.2% 30
Slide 31: We are continuing on our mission to ignite the human spirit through movement
Mission & Vision On Investor Day 2023 We are continuing on our mission to ignite the human spirit through movement 31
Slide 32: Our vision
On Investor Day 2023 Our vision: To be the most premium global sportswear brand: built on innovation, design, and sustainability 32
Slide 33: Elevate, Expand, Establish
Writing our next chapter of growth – outlining our strategic building blocks On Investor Day 2023 Elevate Expand Establish our market share in running our footprint in China our training community and light up the tennis court our brand awareness among our communities our premium multi-channel distr
Slide 34: We are significantly expanding our addressable market in the premium segment
Global sportswear market landscape On Investor Day 2023 We are Total 355bn significantly Sportswear expanding our addressable market in the 70bn premium segment 25bn On Current Addressable Market – Total Premium Lifestyle, Individual Premium Run & Run Inspired Movement & Individual Sport Source: 202
Slide 35: We intend to double our Net Sales in the next three years
On Investor Day 2023 We intend to double our Net Sales in the next three years and expand our profitability to 18%+ Adjusted EBITDA while building the foundation for a much bigger company 35
Slide 36: People & Culture
On Investor Day 2023 People & Culture Noa Perry-Reifer Bianca Pestalozzi Chief People Officer GM EMEA 36
Slide 37: Video
On Investor Day 2023 Video 37
Slide 38: Dream Together. Dream On.
When we dream together we can accomplish so much more. Dream Together. Dream On.® 38
Slide 39: Engagement survey results
Engagement survey results On Investor Day 2023 Top scoring questions: what makes On ON We are I am able to use I feel I am part I am passionate On is in a encouraged to be my personal of a team. about the work position to innovative. initiative or I do. succeed over judgment in the next 3 carrying o
Slide 40: Our five spirits
Our five spirits On Investor Day 2023 The Explorer The Athlete The Team The Survivor The Positive Spirit Spirit Spirit Spirit Spirit Rethink and venture Build the better you. Start and finish Get smart to Deliver Wow. into the unknown. as a team. save the planet. 40
Slide 41: Global office footprint
Global office footprint On Investor Day 2023 Key office locations Europe: Zurich Berlin London Americas: Portland NYC São Paulo APAC: Ho Chi Minh City Shanghai Yokohama Hanoi Melbourne Americas EMEA APAC Team members: 397 Team members: 1,176 Team members: 334 Number of Nationalities: 35 Number of Na
Slide 42: We intentionally invest in innovation drivers
Team composition On Investor Day 2023 We intentionally invest in innovation drivers Team member count in key functions 200 110 Product & Tech Innovation 350 130 Global E-com Marketing Note: Out of >1’800 total global team members 42
Slide 43: We hire industry outsiders and invest in diverse talent
Team composition On Investor Day 2023 We hire industry outsiders and invest in diverse talent because we believe the answer lies in thinking differently. #1 +500 87’000 91% Within the retail New team Applications Of candidates sector in Fast members in 2023 received in 2023* accepted final offer Com
Slide 44: Diversity, inclusion and social action
Diversity, inclusion and social action On Investor Day 2023 Our mission is to make diversity and inclusion second nature; a habit that’s infused in the way we live to positively impact the world. Diversity of Teams Inclusive Culture Social Impact Our teams represent the consumers Create a culture wh
Slide 45: Right to Run
Right to Run On Investor Day 2023 Teaming up with 20 strong partners across the globe to foster a sense of belonging and make the joy of running accessible to all. 45
Slide 46: Video
On Investor Day 2023 Video 46
Slide 47: Brand
On Investor Day 2023 Brand Alex Griffin Chief Marketing Officer 47
Slide 48: The role of marketing
LRP 2023 The role of marketing? Create a culturally relevant multi-faceted premium brand, that can tap into several sports and communities. 48
Slide 49: A different model for our growth journey
LRP 2023 We need to implement a different model for our growth journey built around: — Supercharging our brand awareness. — Increasing the efficiency of our spend. 49
Slide 50: Scale existing and new audiences globally with large brand moments
Three fundamental shifts LRP 2023 1. Scale existing and new audiences globally with large brand moments that drive awareness. ⏤ Brand moments that resonate culturally, create an upswell in organic brand heat. ⏤ Potential disruption of tried and true channels - How are the big search engines able to
Slide 51: Authenticate within our communities
Three fundamental shifts LRP 2023 2. Authenticate within our communities using highly credible stories, events and partnerships to fuel consideration. ⏤ Owned event formats give us scalable formats as we expand to more key cities. ⏤ Key Accounts allow us to reach untapped communities and act as bran
Slide 52: Drive purchase at scale with a new playbook
Three fundamental shifts LRP 2023 3. Drive purchase at scale with a new playbook to increase efficiency. ⏤ By utilising the appeal of well known faces from sports and culture we can increase efficiency in our funnel spend. ⏤ DTC key city retail locations are incredible billboard opportunities for th
Slide 53: The Ben effect
The Ben effect On Investor Day 2023 +1000% +100% +396% Tennis apparel on.com Revenue searches conversions Note: DTC E-Com NA, US Open Wow Comparison 53
Slide 54: Video
On Investor Day 2023 Video 54
Slide 55: Innovation & Product
On Investor Day 2023 Innovation & Product David Allemann Thilo Brunner Caspar Coppetti Gerald Marolf Co-Founder & Chief Design Officer Co-Founder & Chief Product Officer Executive Co-Chairman Executive Co-Chairman 55
Slide 56: It has the power to capture thoughts and turn visions into physical reality
On Investor Day 2023 It has the power to capture thoughts and turn visions into physical reality. 56
Slide 57: Our design team
On Investor Day 2023 Our design team consists of visionary leaders, creative dreamers and straight forward makers. 57
Slide 58: Swiss Design
The On design philosophy On Investor Day 2023 Swiss Design A legacy of functionality and minimalism 58
Slide 59: Visual technology: a promise
The On design philosophy On Investor Day 2023 Visual technology: a promise 59
Slide 60: The On design philosophy
The On design philosophy On Investor Day 2023 Product Integrity Aesthetics Materials Functionality Styling Sustainability Functionality 60
Slide 61: Aesthetics of performance
The On design philosophy On Investor Day 2023 Aesthetics of performance 61
Slide 62: Aesthetics of sustainability
The On design philosophy On Investor Day 2023 Aesthetics of sustainability 62
Slide 63: Aesthetics of innovation
The On design philosophy On Investor Day 2023 Aesthetics of innovation 63
Slide 64: The 4th Pillar: Sui Generis
The On design philosophy On Investor Day 2023 The 4th Pillar: Sui Generis 64
Slide 65: Future
The On design philosophy On Investor Day 2023 Future 65
Slide 66: We are an innovation company. Born in running.
On Investor Day 2023 We are an innovation company. Born in running. 66
Slide 67: Running is the most versatile sport
On Investor Day 2023 Running is the most versatile sport 67
Slide 68: Running, Outdoor, Training, Tennis, All Day
On Investor Day 2023 Running Outdoor Training Tennis All Day 69
Slide 69: Running: continue to disrupt
On Investor Day 2023 Running Outdoor Training Tennis All Day Continue to disrupt Create the most advanced running gear for every type of runner. 70
Slide 70: Building credibility from our high-performance core
On Investor Day 2023 Building credibility from our high– performance core 71
Slide 71: Running franchises: double down on product
Running On Investor Day 2023 Double-down on product CONFIDENCE EFFORTLESS Franchises FORWARD ROLLING Create ENERGY < supershoes for mere humans FAST SUPPORT NEUTRAL SPEED Increase average selling prices “Gives me Superpower” “Gives me Freedom” “Gives me Energy” “Gives me Speed” Products engineered t
Slide 72: Feel Nothing. So you can feel everything.
Running On Investor Day 2023 Unmatched innovation capabilities in performance and sustainability Feel Nothing. So you can feel everything.® Cyclon ® T 73
Slide 73: CloudTec Phase and CleanCloud
Running On Investor Day 2023 Unmatched innovation capabilities in performance and sustainability CloudTec CleanCloud® Phase® 74
Slide 74: Training: get into the market
On Investor Day 2023 Running Outdoor Training Tennis All Day Get into the market Bring the innovation of running and tennis to the gym, studio, and beyond. 75
Slide 75: Welcome Training
On Investor Day 2023 On's products Welcome Training have been naturally adopted at gyms around the globe 76
Slide 76: Training as one of our 5 key verticals
Training On Investor Day 2023 Now, we are officially welcoming the training category as one of our 5 key verticals 77
Slide 77: Introducing Cloudpulse: On's first training shoe
Training On Investor Day 2023 Introducing Cloudpulse® : On’s first training shoe 78
Slide 78: Tennis: kick start our entry
On Investor Day 2023 Running Outdoor Training Tennis All Day Kick start our entry Be the most aspirational brand, mastering and breaking the rules. 79
Slide 79: In it with the GOAT
On Investor Day 2023 In it with the GOAT 80
Slide 80: Engineered with Roger and Team
On Investor Day 2023 Engineered with Roger and Team 81
Slide 81: Athlete Approved unlocking Court Lifestyle
On Investor Day 2023 Athlete Approved unlocking Court Lifestyle 82
Slide 82: Adopted Off Court Worldwide
On Investor Day 2023 Adopted Off Court Worldwide Better Lifestyle Image needed, Court Lifestyle campaign (Ideally Female, since the rest is Ben/Roger) 83
Slide 83: Video
On Investor Day 2023 Video 84
Slide 84: Performance All Day: create and push blockbusters
On Investor Day 2023 Running Outdoor Training Tennis Performance All Day Create & push blockbusters Connect leading performance products to young and diverse communities across the globe. 85
Slide 85: We call it Performance All Day
On Investor Day 2023 We call it “Performance All Day” 86
Slide 86: Always rooted in performance
On Investor Day 2023 Always rooted in performance 87
Slide 87: We are Run Culture
On Investor Day 2023 We are Run Culture 88
Slide 88: Where Performance and Fashion meet
On Investor Day 2023 Where Performance and Fashion meet Loewe® x On Cloudtilt® coming October 12 89
Slide 89: Performance core inspires an active lifestyle
Innovation & Product On Investor Day 2023 Performance core inspires an active lifestyle. PERFORMANCE TRAINING RUNNING ALL DAY TENNIS TRAIL COURT OUTDOOR LIFESTYLE LIFESTYLE 90
Slide 90: On is successfully building footwear blockbusters in active lifestyle
Innovation & Product On Investor Day 2023 On is successfully building footwear blockbusters in active lifestyle. PERFORMANCE ALL DAY: TRAINING: Cloud X ® RUNNING Cloud ®, Cloudnova ®, Cloudtilt ® TENNIS TRAIL COURT LIFESTYLE: The Roger ® OUTDOOR LIFESTYLE: Cloudhorizon ® 91
Slide 91: Premium sportswear products that transition from sport to street
On Investor Day 2023 Premium sportswear products that transition seamlessly from the sport to the street 92
Slide 92: Feel Nothing. So you can feel everything.
On Investor Day 2023 Feel Nothing. So you can feel everything.® 93
Slide 93: Our vision
On Investor Day 2023 Our vision: To be the most premium global sportswear brand: built on innovation, design, and sustainability 94
Slide 94: Market Approach
On Investor Day 2023 Market Approach REBECCA CAI BRITT OLSEN AMANDA REGELE GM APAC GM Americas & Head Head of Digital of Global Commercial Strategy 95
Slide 95: Boost e-commerce, expand retail network, scale through wholesale
Market approach On Investor Day 2023 Boost our Expand our Scale through e-commerce retail network wholesale Lead market growth by bringing the Drive brand awareness and Multiply reach through network of most expressive and digitally-scalable experience in key cities with an trusted partners to inspi
Slide 96: On is currently present in >9,800 stores in over 60 countries
Market approach On Investor Day 2023 On is currently present in >9’800 stores in over 60 countries On led Wholesale & DTC Distributor WHS & On Ecom Distributor market 97
Slide 97: Market approach
Market approach On Investor Day 2023 RUN TRAINING PAD TENNIS OUTDOOR Dedicated Everyday Dedicated Everyday Active Movement Dedicated Everyday Court Dedicated Everyday Exploration Run Run Training Training Lifestyle Lifestyle Tennis Tennis Lifestyle Trail Trail Lifestyle SPECIALTY SPECIALTY SPECIALTY
Slide 98: Many markets at very early stages of maturity
On Investor Day 2023 Many markets at SUI On market maturity very early stages of GER + AUT maturity UK USA FR ITA ESP JP China LatAm Rest of APAC Rest of MEA Market Entry Establish Brand Win the market Deepen consumer connection Market expansion Market acceleration Market penetration Note: Overview
Slide 99: Market approach
Market approach On Investor Day 2023 Current Brand & Market Switzerland Penetration High Germany USA UK France Low China Importance of own Retail in operating model Low High Premium Wholesale Note: Overview not exhaustive, only selected countries / country clusters shown Density 100
Slide 100: Boost e-commerce, expand retail network, scale through wholesale
Market approach On Investor Day 2023 Boost our Expand our Scale through e-commerce retail network wholesale Lead market growth by bringing the Drive brand awareness and Multiply reach through network of most expressive and digitally-scalable experience in key cities with an trusted partners to inspi
Slide 101: On's e-commerce platform is much more than a transactional engine
Boost our e-commerce On Investor Day 2023 On’s e-commerce platform is much more than a transactional engine 102
Slide 102: We expect e-com to outgrow wholesale over the coming years
Boost our e-commerce On Investor Day 2023 We expect e-com to outgrow wholesale over the coming years Website Visits Net Sales 51% CAGR >55% DTC Ecom CAGR H1’21 vs. H1’23 H1’21 vs. H1’23 103
Slide 103: Repeat customers quickly become loyal lifetime fans
Boost our e-commerce On Investor Day 2023 Repeat customers quickly become loyal lifetime fans Higher retention rate Higher basket size Increasing apparel share 1st purchase 2nd purchase 3rd purchase 4th purchase 5th purchase Note: Chart contains illustrative figures 104
Slide 104: Powerful and premium brand home on.com
Boost our e-commerce On Investor Day 2023 Powerful and premium brand home on.com 105
Slide 105: Expand: .com, app, social commerce, marketplaces
Boost our e-commerce On Investor Day 2023 EXPAND Social commerce Distributor-led .com App Marketplace sites 106
Slide 106: As shopping destinations and channels evolve, so will how consumers shop
Boost our e-commerce On Investor Day 2023 As shopping destinations and channels evolve, so will how consumers shop. We will continue to innovate on the experience layer alongside shifts in technology and consumer demands. 107
Slide 107: We're investing in conversational interfaces
Boost our e-commerce On Investor Day 2023 We’re investing in conversational interfaces. Moving from clicks and keywords to fluid conversations, powered by rich language models. 108
Slide 108: Crafting connected, multi-channel experiences
Boost our e-commerce On Investor Day 2023 Crafting connected, multi-channel experiences where a user journey can start, stop and continue across a suite of devices and channels. 109
Slide 109: Boost e-commerce, expand retail network, scale through wholesale
Market approach On Investor Day 2023 Boost our Expand our Scale through e-commerce retail network wholesale Lead market growth by bringing the Drive brand awareness and Multiply reach through network of most expressive and digitally-scalable experience in key cities with an trusted partners to inspi
Slide 110: Retail acts as strong enabler for brand build and awareness
Expand our retail network On Investor Day 2023 Retail acts as strong enabler for brand build and awareness across channels. 3x Higher baseline e-com traffic post store opening In the Greater London area 111 Note: Refers to increase in searches for On + London
Slide 111: Apparel share by store
26% 19% On Investor Day 2023 16% Apparel share Apparel share Apparel share Yitian Shenzhen Zurich On Labs NYC Williamsburg Note: In-store apparel share computed on a 112 volume basis, YTD
Slide 112: Retail store openings
Expand our retail network On Investor Day 2023 London, UK New York, NoHo, USA New York, Williamsburg, USA Los Angeles, USA Refresh Coming Include a Soon Coming Soon Coming Soon comment 113 Zurich, Switzerland Tokyo, Japan Portland, USA Miami, USA
Slide 113: London, Spitalfields
On Investor Day 2023 London, Spitalfields Opening in Q4 2023 114
Slide 114: Paris, Marché Saint Germain
On Investor Day 2023 Paris, Marché Saint Germain Opening in Q4 2023 115
Slide 115: Store formats: Flagship, Chapter, Commercial
Expand our retail network On Investor Day 2023 Flagship Chapter Commercial Boost Build Store mission Trade High exposure in relevant Spark performance in city & Penetrate market with new or city & beyond position brand specific collections, carry over products from previous sessions, support Onwards
Slide 116: Increasing the pace of own store roll-out
Expand our retail network On Investor Day 2023 We are significantly increasing the pace of own store roll-out and expect to add 20-25 stores per year in the mid term* * Thereof roughly half in China and half outside of China 117
Slide 117: Boost e-commerce, expand retail network, scale through wholesale
Market approach On Investor Day 2023 Boost our Expand our Scale through e-commerce retail network wholesale Lead market growth by bringing the Drive brand awareness and Multiply reach through network of most expressive and digitally-scalable experience in key cities with an trusted partners to inspi
Slide 118: Brand attracting wide range of consumers; disruptive and innovative products
Scale through wholesale On Investor Day 2023 Brand attracting wide range Disruptive and innovative of consumers products “On is able to attract a wide range of customers “Through innovation and style the On Team other brands aren't able to reach. Their products has brought a point of differentiation
Slide 119: Significant runway to build presence with large-scale wholesale partners
Scale through wholesale On Investor Day 2023 We still have significant On presence as % of total estimated global key account doors runway to build presence with our newest large- scale wholesale partners ~20% ~20% ~20% Note: Denotes presence as of SS 2023 Season 120
Slide 120: We will continue to co-build our full storytelling within trusted partner environments
Scale through wholesale On Investor Day 2023 We will continue to co-build our full storytelling within trusted partner environments 121
Slide 121: Boost e-commerce, expand retail network, scale through wholesale
Market approach On Investor Day 2023 Boost our Expand our Scale through e-commerce retail network wholesale Lead market growth by bringing the Drive brand awareness and Multiply reach through network of most expressive and digitally-scalable experience in key cities with an trusted partners to inspi
Slide 122: The market opportunity in China is growing
Market approach On Investor Day 2023 The market opportunity in China is growing, and On is well positioned to build on our brand momentum 123
Slide 123: Switch On Summer
Market approach On Investor Day 2023 Miao hao or Ati Switch On picture from social Summer 124
Slide 124: Tailored approach to the unique China market landscape
Market approach On Investor Day 2023 Given the unique nature of the market landscape, we have tailored our approach to resonate with the local consumer 125
Slide 125: China city partners: Wuhan, Chengdu, Hangzhou, Beijing, Shanghai
Market approach On Investor Day 2023 Wuhan Chengdu Hangzhou Franchise Own retail Franchise Beijing Shanghai Own retail Own retail 126
Slide 126: Our footprint in Mainland China
Market approach On Investor Day 2023 Our footprint in Mainland China - Beijing both Retail and 5x Own Shenyang 3x Franchise Franchise Taiyuan 2x Tianjin 2x 2x Xian Zhengzhou 3x Nanjing Suzhou 2x Chengdu Shanghai Wuhan 3x Own 9x Own 2x 1x Franchise 1x Franchise Hangzhou Chongqing Guangzhou Xiamen 1x
Slide 127: Financial Ambition
On Investor Day 2023 Financial Ambition MARTIN HOFFMANN SAM WENGER CO-CEO & CFO Deputy CFO 128
Slide 128: FY2023 Outlook reiterated
FY2023 Outlook reiterated On Investor Day 2023 Gross Profit Adj. EBITDA Net Sales 2023E margin margin 1.76bn >58.5% 15.0% CHF 44.3% YoY Net Sales Gross Profit Adj. EBITDA 2022A 1.22bn CHF margin 56.0% margin 13.5% 129
Slide 129: 2026 financial ambition
2026 financial ambition On Investor Day 2023 Gross Profit Adj. EBITDA Net Sales 2026E margin margin >3.55bn >60% >18.0% CHF >26% >27% >34% Net Sales Gross Profit Adj. EBITDA CAGR CAGR CAGR Net Sales Gross Profit Adj. EBITDA 2023E 1.76bn CHF margin >58.5% margin 15.0% 130
Slide 130: Net Sales ambition
Net Sales ambition On Investor Day 2023 More runway than we can Gross execute Profit Adj.growth on; strong EBITDA Net Sales across all regions margin 2026E margin >3.55bn >60% >18.0% CHF >26% >27% >34% Higher DTC Gross Profit Net Sales CAGR < CAGR growth vs wholesale Adj. EBITDA CAGR Net Sales Gross
Slide 131: Gross Profit margin ambition
Gross Profit margin ambition On Investor Day 2023 Higher DTC Adj. EBITDA Gross Profit Gross Profit growth vs wholesale margin 2026E margin margin >60% >60% >18.0% >27% >27% Continued Gross Profit Gross Profit CAGR < CAGR premium positioning Gross Profit Gross Profit 2023E Adj. EBITDA margin margin m
Slide 132: Adjusted EBITDA margin ambition
Adjusted EBITDA margin ambition On Investor Day 2023 Lower distribution cost via Adj. EBITDA Gross Profit automation &Adj. EBITDA scale margin 2026E margin margin >18% >60% >18.0% >34% >27% Marketing Gross Profit Adj. EBITDA CAGR < CAGR efficiencies Adj. EBITDA Gross Profit 2023E Adj. EBITDA margin
Slide 133: Increased focus on cash flow
Increased focus on cash flow On Investor Day 2023 Accelerated own retail rollout Physical spaces at partners and trade tools AREAS FOR Technology, infrastructure INVESTMENT and offices Inventory optimized product lifecycle Overall inventory optimization AREAS FOR CASH FLOW Higher DTC OPTIMIZATION gr
Slide 134: Long-term ambitions post 2026
Long-term ambitions post 2026 On Investor Day 2023 Building the most premium, global sportswear brand Long-Term Ambitions post 2026, Build towards… 20 - 25% Net Sales Growth 20%+ Margin Adjusted EBITDA >10% Apparel Share >10% Own Retail Share >10% China Share 135
Slide 135: Dream On.
On Investor Day 2023 Dream On. 136
Slide 136: Appendix
On Investor Day 2023 Appendix 137
Slide 137: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation On Investor Day 2023 (CHF in millions) 2019A 2020A 2021A 2022A LTM Q2-21 LTM Q2-23 Net income / loss (1.5) (27.5) (170.2) 57.7 9.3 41.9 Income taxes 4.6 3.1 10.6 20.2 9.9 3.2 Financial income / 2.5 7.3 18.5 7.2 5.5 92.0 expenses and foreign exchange result Depreciation