Puma Se · XETR:PUM
Puma — FY2023 Earnings Presentation
78 slides from Puma's earnings presentation, Feb 27, 2024
Slide 1: Earnings Call Q4 & FY 2023
PUMA EARNINGS CALL Q4 & FY 2023 FEBRUARY 27TH, 2024
Slide 2: Agenda
AGENDA 01. BRAND PROGRESS 2023 02. FINANCIAL PROGRESS 2023 03. OUTLOOK 2024
Slide 3: 2023 Was a Success
2023 WAS A SUCCESS DESPITE MACROECONOMIC AND GEOPOLITICAL VOLATILITY,
Slide 4: The Challenger
ANOTHER YEAR WHERE WE DEMONSTRATED THAT WE ARE THE CHALLENGER IN THE WORLD OF SPORTS AND SPORTS CULTURE
Slide 5: Continued to Challenge in Sports
CONTINUED TO CHALLENGE IN SPORTS MAJOR PROGRESS ACROSS ALL PERFORMANCE CATEGORIES FOOTBALL STRONG MARKET SHARE GAINS ACROSS ALL MARKETS
Slide 6: Champions: Ivory Coast wins Africa Cup of Nations
THE BEST TEAM IN AFRICA IVORY COAST WINS AFRICA CUP OF NATIONS 2024 CHAMPIONS
Slide 7: The Best Team & The Best Coach
THE BEST TEAM & THE BEST COACH IN THE WORLD
Slide 8: Best Teams Worldwide
BEST TEAMS WORLDWIDE BUNDESLIGA LIGUE 1 PREMIER LEAGUE SERIE A LA LIGA EREDIVISIE GERMANY FRANCE ENGLAND ITALY SPAIN NETHERLANDS #1 #1 #2 #2 #3 #4 #4 SÜPER LIG LIGA MX SERÍE A LIGA PROFESIONAL PRIMEIRA LIGA PRIMERA DIVISION TURKEY MEXICO BRAZIL ARGENTINA PORTUGAL CHILE #1 #1 #1 #3 #3 #5
Slide 9: Best Teams Worldwide
BEST TEAMS WORLDWIDE BUNDESLIGA LIGUE 1 PREMIER LEAGUE SERIE A LA LIGA EREDIVISIE GERMANY FRANCE ENGLAND ITALY SPAIN NETHERLANDS #1 #1 #2 #2 #3 #4 #4 SÜPER LIG LIGA MX SERÍE A LIGA PROFESIONAL PRIMEIRA LIGA PRIMERA DIVISION TURKEY MEXICO BRAZIL ARGENTINA PORTUGAL CHILE #1 #1 #1 #3 #3 #5
Slide 10: P10
P10
Slide 11: Clubs per Outfitter
STRONG FORCE IN CHAMPIONS LEAGUE 2023/24 BRAND OVERVIEW CLUBS PER OUTFITTER 7/32 TEAMS
Slide 12: Welcome to the Family
XAVI CODY LAIA SIMONS GAKPO ALEX JACK ALEIXANDRI GREENWOOD KAI GREALISH HAVERTZ WELCOME TO THE FAMILY
Slide 13: Players Sell Boots – Our Portfolio
PLAYERS SELL BOOTS – OUR PORTFOLIO FOR THE FOR THE FASTEST FOR THE PLAYMAKER PLAYER NEXT KING MATEO XAVI KOVAČIĆ SIMONS YUNUS RITSU MUSAH DOAN
Slide 14: Great Momentum in Sports
GREAT MOMENTUM IN SPORTS MAJOR PROGRESS ACROSS ALL PERFORMANCE CATEGORIES TEAMSPORT BASKETBALL STRONG MARKET SHARE TOP 3 BRAND IN GAINS ACROSS ALL SIGNATURE & MARKETS PERFORMANCE
Slide 15: NBA All Star Weekend Key Highlights
NBA ALL STAR WEEKEND KEY HIGHLIGHTS P15
Slide 16: Our Players Are Winning
OUR PLAYERS ARE WINNING NUMEROUS CHAMPIONSHIPS AND AWARDS FOR PUMA HOOPS PLAYERS JACKIE YOUNG MAC MCCLUNG BREANNA STEWART DENNIS SCHRÖDER SCOOT HENDERSON 2x WNBA CHAMP 2x NBA DUNK CHAMPION 2x MVP WORLD CHAMP & MVP ASG RISING STAR
Slide 17: Top Signature Brand: LaMelo Ball MB.03
TOP 3 SIGNATURE MB.03 BRAND LAMELO BALL P17
Slide 18: Great Product Newness in Performance
GREAT PRODUCT NEWNESS IN PERFORMANCE SUCCESSFUL INTRODUCTION OF ALL PRO NITRO MAKING US TOP 3 PERFORMANCE BRAND SCOOT1
Slide 19: Great Momentum in Sports
GREAT MOMENTUM IN SPORTS MAJOR PROGRESS ACROSS ALL PERFORMANCE CATEGORIES TEAMSPORT BASKETBALL RUNNING STRONG MARKET SHARE TOP 3 BRAND IN CONTINUED STRONG GAINS ACROSS ALL SIGNATURE & GROWTH TRAJECTORY MARKETS PERFORMANCE AFTER SUCCESSFUL RE-ENTRY
Slide 20: Road Running: Now It's Time to Challenge
NOW IT’S TIME TO CHALLENGE ROAD RUNNING SINCE 2021
Slide 21: Beat Your Personal Best
• HELPS YOU BETTER YOUR PERSONAL BEST BEAT YOUR PERSONAL BEST P21
Slide 22: Deviate Nitro Elite 3
FIONA O’KEEFFE 2:22:10 – 1 ST DEVIATE NITRO DAKOTAH LINDWURM 2:25:31 - 3RD ELITE 3 • FASTEST EVER DEBUT IN THE • MOVED FROM 8TH PLACE TO 3RD PLACE MARATHON FOR AN AMERICAN OVER FINAL 6 MILES OF THE RACE WOMEN – HER FIRST PROFESSIONAL MARATHON! • SECOND FASTEST MARATHON OF HER CAREER • FASTEST EVER M
Slide 23: Hero Franchises Spring/Summer 2024
HERO FRANCHISES SPRING/SUMMER 2024 RACE DAY SHOES FAST-R NITRO ELITE 2 DEVIATE NITRO ELITE 3 EVERYDAY RUNNING SHOES VELOCITY NITRO 3 DEVIATE NITRO 2 FOREVERRUN NITRO
Slide 24: Building Brand Consideration
BUILDING BRAND CONSIDERATION AT RUNNING EVENTS WORLDWIDE
Slide 25: Great Momentum in Sports
GREAT MOMENTUM IN SPORTS MAJOR PROGRESS ACROSS ALL PERFORMANCE CATEGORIES TEAMSPORT BASKETBALL RUNNING GOLF STRONG MARKET SHARE TOP 3 BRAND IN CONTINUED STRONG CONTINUED MARKET GAINS ACROSS ALL SIGNATURE & GROWTH TRAJECTORY SHARE GROWTH IN THE MARKETS PERFORMANCE AFTER SUCCESSFUL US & EUROPE RE-ENTR
Slide 26: Golf Ambassador Roaster
GOLF AMBASSADOR ROASTER STRONG VISIBILITY ON THE FIELD RICKI FOWLER LEXI THOMPSON GARY WOODLAND JUSTIN SUH MATTI SCHMID
Slide 27: Back in the Winner's Circle
BACK IN THE WINNER’S CIRCLE RICKIE FOWLER
Slide 28: Newness in Golf in 2023
NEWNESS IN GOLF IN 2023 e|~ A=redsI=T FASTER BY DESIGN FOREVER.FASTER.
Slide 29: Newness in Golf in 2024
NEWNESS IN GOLF IN 2024 [Hien ¢ cobhrs DARK === FOREVER.FASTER.
Slide 30: Great Momentum in Sports
GREAT MOMENTUM IN SPORTS MAJOR PROGRESS ACROSS ALL PERFORMANCE CATEGORIES TEAMSPORT BASKETBALL RUNNING GOLF MOTORSPORT STRONG MARKET SHARE TOP 3 BRAND IN CONTINUED STRONG CONTINUED MARKET STRENGTHENED OUR GAINS ACROSS ALL SIGNATURE & GROWTH TRAJECTORY SHARE GROWTH IN THE #1 POSITION IN MARKETS PERFO
Slide 31: Formula 1 Season
• performance NON-PERFORMANCE FORMULA 1 1. 860 2. 409 2023 3. 406 4. 302 5. 280 SEASON FINAL STANDINGS STARTING 2024 6. 7. 8. 120 28 25 9. 16 10. 12
Slide 32: We Own the Track
WE OWN THE TRACK LAS VEGAS GRAND PRIX
Slide 33: Owning the Grid in Las Vegas
OWNING THE GRID IN LAS VEGAS PUMA X JOSHUA VIDES X SCUDERIA FERRARI COLLECTION JOSHUA VIDES X FERRARI 2ND PLACE FOR CHARLES LECLERC
Slide 34: Strengthened Credibility in Performance
STRENGTHENED CREDIBILITY IN PERFORMANCE
Slide 35: Authenticity to Win in Sports Culture
AUTHENTICITY TO WIN IN SPORTS CULTURE
Slide 36: Sportstyle
SPORTSTYLE THE CULTURE OF SPORTS
Slide 37: Strengthened Ambassador Roaster
STRENGTHENED AMBASSADOR ROASTER MAJOR SIGNINGS IN 2023 ON GLOBAL AND REGIONAL LEVEL RIHANNA A$AP ROCKY SKEPTA DUA LIPA DAVIDO IVE NEW NEW NEW
Slide 38: Great Newness in Sport Culture
GREAT NEWNESS IN SPORT CULTURE PROGRESS IN SPORTSTYLE BUSINESS ON TREND CONTINUE TO ACCELERATE WITH PALERMO AND SUEDE XL MATCHING THE ONGOING TERRACE AND SKATE TRENDS
Slide 39: Capitalizing on the Terrace Trend
CAPITALIZING ON THE TERRACE TREND PALERMO (LAUNCH NOVEMBER 2023) IVE JACK GREALISH DUA LIPA P39
Slide 40: Capitalizing on the Skate Trend
CAPITALIZING ON THE SKATE TREND SUEDE XL (LAUNCH JANUARY/FEBRUARY 2024)
Slide 41: Great Newness in Sports Culture
GREAT NEWNESS IN SPORTS CULTURE PROGRESS IN SPORTSTYLE BUSINESS ON TREND NEW TRENDS CONTINUE TO ACCELERATE WITH PALERMO AND SUEDE XL INCUBATING THE NEXT BIG TREND MATCHING THE ONGOING TERRACE AND SKATE TRENDS
Slide 42: Fenty: Skate & Terrace
FENTY: SKATE & TERRACE NEW INTERPRETATION OF CURRENT TRENDS
Slide 43: Mostro: Ignite Low Profile
MOSTRO: IGNITE LOW PROFILE CONTINUE TO CREATE THE TREND
Slide 44: Speedcat: Ignite Low Profile
SPEEDCAT: IGNITE LOW PROFILE CREATING THE NEXT BIG TREND
Slide 45: Inhale: Ignite Low Profile
INHALE: IGNITE LOW PROFILE CREATING THE NEXT BIG TREND WITH A$AP ROCKY
Slide 46: Agenda
AGENDA 01. BRAND PROGRESS 2023 02. FINANCIAL PROGRESS 2023 03. OUTLOOK 2024
Slide 47: Brand Momentum Translated into Financial Performance
FINANCIAL PERFORMANCE BRAND MOMENTUM TRANSLATED INTO
Slide 48: Reported Financial Performance vs Underlying Operational Performance
REPORTED FINANCIAL UNDERLYING OPERATIONAL PERFORMANCE PERFORMANCE 6.6% CURRENCY ADJUSTED SALES GROWTH >8% CURRENCY ADJUSTED SALES GROWTH P48
Slide 49: FY 2023 – Sales Breakdown
FY 2023 – SALES BREAKDOWN SALES VS LAST YEAR (IN %, CURRENCY ADJUSTED) BY CHANNEL BY DIVISION BY REGION WHOLESALE +3.5% TOTAL DTC +17.5% FOOTWEAR +12.4% EMEA +13.4% BRICK & MORTAR +18.8% APPAREL -0.3% AMERICAS -2.4% +LSD ca EXCL. ARS DEVALUATION E-COM +15.0% ACCESSORIES +3.1% APAC +13.6% TOTAL +6.6%
Slide 50: YTD 2023 – Sales Breakdown
YTD 2023 – SALES BREAKDOWN QUARTERLY SALES BY MARKET VS LAST YEAR (IN %, CURRENCY ADJUSTED) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 EEA +26.3% +25.4% +20.1% +29.1% +24.7% +23.4% +9.0% -1.4% -9.2% +4.9% EEMEA +22.1% +7.4% +12.8% +16.6% +14.5% +33.5% +111.4% +63
Slide 51: Operating Performance
OPERATING PERFORMANCE
Slide 52: Q4 2023 – Operating Performance
Q4 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) UNDERLYING OPERATING PUMA GROUP Q4 2022 Q4 2023 DEVIATION PERFORMANCE SALES 2,196.6 1,982.2 -9.8% +LSD ca (in EUR M) (-4.0% ca) GROSS PROFIT 967.3 931.1 -3.7% (in EUR M/ % of Sales) (44.0%) (47.0%) (+2.9%pts)
Slide 53: Q4 2023 – Operating Performance
Q4 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) UNDERLYING OPERATING PUMA GROUP Q4 2022 Q4 2023 DEVIATION PERFORMANCE SALES 2,196.6 1,982.2 -9.8% +LSD ca (in EUR M) (-4.0% ca) GROSS PROFIT 967.3 931.1 -3.7% (in EUR M/ % of Sales) (44.0%) (47.0%) (+2.9%pts)
Slide 54: Q4 2023 – Operating Performance
Q4 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) UNDERLYING OPERATING PUMA GROUP Q4 2022 Q4 2023 DEVIATION PERFORMANCE SALES 2,196.6 1,982.2 -9.8% +LSD ca (in EUR M) (-4.0% ca) GROSS PROFIT 967.3 931.1 -3.7% (in EUR M/ % of Sales) (44.0%) (47.0%) (+2.9%pts) OPEX* -926.7 -83
Slide 55: Currency Effects
CURRENCY EFFECTS 2023 IMPACT GROSS PROFIT SALES OPEX MARGIN 2023 IMPACT: ~ EUR -400M 2023 IMPACT: ~ -250 BPTS 2023 IMPACT: ~ -20 BPTS TRANSLATION TRANSACTION CURRENCY MIX TRANSLATION FROM LOCAL MAINLY FROM HEDGING OF SALES ARE MORE EXPOSED TO CURRENCY INTO EUR EUR/USD IN COGS CURRENCIES THAN OPEX AV
Slide 56: FY 2023 – Operating Performance
FY 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) UNDERLYING OPERATING PUMA GROUP FY 2022 FY 2023 DEVIATION PERFORMANCE SALES 8,465.1 8,601.7 +1.6% > 8% ca (in EUR M) (+6.6% cc) GROSS PROFIT 3,902.7 3,986.6 +2.1% (in EUR M/ % of Sales) (46.1%) (46.3%) (+0.2%pts)
Slide 57: FY 2023 – Operating Performance
FY 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) UNDERLYING OPERATING PUMA GROUP FY 2022 FY 2023 DEVIATION PERFORMANCE SALES 8,465.1 8,601.7 +1.6% > 8% ca (in EUR M) (+6.6% cc) GROSS PROFIT 3,902.7 Q3 3,986.6 Q4 FY +2.1% (in EUR M/ % of Sales) (46.1%) (46.3%) (+0.2%pts) CUR
Slide 58: FY 2023 – Operating Performance
FY 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) UNDERLYING OPERATING PUMA GROUP FY 2022 FY 2023 DEVIATION PERFORMANCE SALES 8,465.1 8,601.7 +1.6% > 8% ca (in EUR M) (+6.6% cc) GROSS PROFIT 3,902.7 3,986.6 +2.1% (in EUR M/ % of Sales) (46.1%) (46.3%) (+0.2%pts) OPEX* -3,262
Slide 59: Balance Sheet KPIs
BALANCE SHEET KPIS VS LAST YEAR (IN EUR M, REPORTED CURRENCY) PUMA GROUP DEC 31ST 2022 DEC 31ST 2023 DEVIATION INVENTORIES 2,245.1 1,804.4 -19.6% TRADE RECEIVABLES 1,064.9 1,118.4 +5.0% TRADE PAYABLES 1,734.9 1,499.8 -13.6% WORKING CAPITAL 1,086.8 1,177.3 +8.3% CASH & CASH EQUIVALENTS 463.1 552.9 +1
Slide 60: Momentum
MOMENTUM MOMENTUM SALES BROADLY EBIT FULLY IN IN LINE WITH LINE WITH EXPECTATIONS EXPECTATIONS INVENTORY BACK TO NORMAL STRONG CASH FLOW IMPROVEMENT MOMENTUM
Slide 61: Dividend Proposal for FY2023
DIVIDEND PROPOSAL FOR FY2023 EARNINGS PER SHARE & DIVIDEND PROPOSAL FOR FY2023 VS PREVIOUS YEARS EARNINGS / DIVIDEND PER SHARE (IN EUR) PAY-OUT RATIO 27.9% 0.0% 30.3% 34.8% 34.7% 40.3% (in %) EARNINGS PER SHARE 2.5 2.36 1.0 DIVIDEND PER SHARE (in EUR) (in EUR) 2.07 2.03 2.0 0.8 1.76 0.82 0.82 0.72 1
Slide 62: Agenda
AGENDA 01. BRAND PROGRESS 2023 02. FINANCIAL PROGRESS 2023 03. OUTLOOK 2024
Slide 63: Outlook 2024
OUTLOOK 2024 SALES & EBIT FY 2023 OUTLOOK 2024 SALES 8,602 MID SINGLE-DIGIT GROWTH (IN EUR M) (CURRENCY-ADJUSTED) EBIT 622 BETWEEN 620 – 700 MILLION (IN EUR M / % OF NET SALES) (7.2%)
Slide 64: Continued Challenging Market Environment
CONTINUED CHALLENGING MARKET ENVIRONMENT OUR ASSUMPTIONS FOR 2024 NO ESCALATION OF GEO- CONTINUED MACRO-ECONOMIC MUTED CONSUMER SENTIMENT STEADY RECOVERY OF CHINESE ONGOING ADVERSE CURRENCY POLITICAL CONFLICTS HEADWINDS IN H1 2024 ECONOMY & UNCHANGED U.S. EFFECTS AND EU ECONOMY
Slide 65: Main Growth Drivers in 2024
MAIN GROWTH DRIVERS IN 2024 OUR ASSUMPTIONS FOR 2024 CONTINUED MOMENTUM IN ONGOING MOMENTUM IN OVERPROPORTIONAL U.S. BUSINESS RETURNING CONTINUED MOMENTUM IN PERFORMANCE SPORTSTYLE CORE GROWTH IN CHINA AND TO GROWTH IN H2 2024 DIRECT-TO-CONSUMER CATEGORIES OTHER EMERGING CHANNEL MARKETS
Slide 66: Currency Effects
CURRENCY EFFECTS 2024 IMPACT SALES GROSS PROFIT OPEX MARGIN 2024 IMPACT: UP TO EUR -200M 2024 IMPACT: ~ -100 BPTS 2024 IMPACT: ~ -20 BPTS TRANSLATION TRANSACTION CURRENCY MIX TRANSLATION FROM LOCAL EUR/USD HEDGING COVERS SALES ARE MORE EXPOSED TO CURRENCY INTO EUR USUALLY ~ 12 MONTH FORWARD CURRENCI
Slide 67: Outlook 2024 – Gross Profit Margin
OUTLOOK 2024 – GROSS PROFIT MARGIN GROSS PROFIT DEVELOPMENT DRIVERS PERIOD 23 24 ILLUSTRATIVE CHART CURRENCY EFFECTS ↓ ↘ 46.3% CHANNEL MIX ↗ ↗ PROMOTIONS ↘ ↗ IMPACT PRICING ↗ ↗ SOURCING PRICES → → FREIGHT → → REGIONAL MIX ↗ ↗ 2023 FX IMPACT CHANNEL MIX OTHER IMPROVEMENT 2024 TOTAL → ↗
Slide 68: Outlook 2024 – Opex
OUTLOOK 2024 – OPEX OPEX DEVELOPMENT DRIVERS (AS % OF SALES) ILLUSTRATIVE CHART PERIOD 23 24 39.1% IMPACT ON OPEX % MARKETING ↗ → 1 CHANNEL MIX ↗ ↗ 2 OTHER OPEX ↗ → TOTAL ↗ ↗ 2023 CHANNEL INFLATION EFFECT RAMP-UP INVESTMENT FX IMPACT PRODUCTIVITY GAINS 2024 MIX OTHER OPEX 1 2
Slide 69: Outlook 2024
OUTLOOK 2024 SALES & EBIT FY 2023 OUTLOOK 2024 SALES 8,602 MID SINGLE-DIGIT GROWTH (IN EUR M) (CURRENCY-ADJUSTED) GROSS PROFIT 3,987 IMPROVEMENT (in EUR M/ % of Sales) (46.3%) OPEX* -3,365 INCREASE (in EUR M/ % of Sales) (-39.1%) EBIT 622 BETWEEN 620 – 700 MILLION (IN EUR M / % OF NET SALES) (7.2%)
Slide 70: Year of Sport 2024
FOREVER.FASTER. YEAR OF SPORT 2024 EUROS COPA OLYMPICS HOOPS
Slide 71: Year of Speed 2024
FOREVER.FASTER. YEAR OF SPEED 2024 EUROS COPA OLYMPICS HOOPS
Slide 72: Great Progress in 2023
GREAT PROGRESS IN 2023 DESPITE MACROECONOMIC AND GEOPOLITICAL VOLATILITY DELIVERED STRONG PROGRESSED WELL IN GAINED FURTHER EXCITING NEWNESS IN FINANCIAL EXECUTING OUR PERFORMANCE THE PIPELINE PERFORMANCE STRATEGY CREDIBILITY
Slide 73: Thank You
THANK YOU PUMA’S SUPERVISORY BOARD
Slide 74: Thank You, PUMA Fam
THANK YOU PUMA FAM WIP THANK YOU, PUMA FAM THE BEST TEAM IN THE INDUSTRY P74
Slide 75: The Challenger
IN 2024, WE WILL CONTINUE TO BE THE CHALLENGER TO PUSH SPORT AND CULTURE FORWARD P75
Slide 76: Capital Markets Day 2024: Consistent Strategic Priorities
C O NS I S T E NT S T R AT E G I C PR I O RI TI ES ELEVATE THE BRAND CAPITAL MARKETS DAY 2024 ENHANCE PRODUCT EXCELLENCE SEE YOU SOON FOCUS ON PEOPLE FIRST IMPROVE DISTRIBUTION QUALITY EVOLVE SUSTAINABILITY DIGITALIZE OUR INFRASTRUCTURE
Slide 77: Q&A
Q&A
Slide 78: Forever. Faster.
FOREVER. FASTER. NY