Slide 1: Earnings Call Q3 2023
PUMA EARNINGS CALL Q3 2023 OCT 24TH, 2023
Slide 2: Agenda
AGENDA 1. BUSINESS UPDATE Q3 2023 a) BRAND UPDATE b) PRIORITIES UPDATE 2. FINANCIAL UPDATE Q3 2023 3. OUTLOOK 2023 FINA NCIA LS
Slide 3: PUMA's 75 Anniversary
EVER.FASTER. FOREVER. FAST = FOREVER.FASTER. FOREVER.FAS VER.FASTER.
Slide 4: Great brand & product momentum in Q3
BRAND MOMENTUM BRAND MOMENTUM BRAND MOMENTUM GREAT BRAND & PRODUCT MOMENTUM IN Q3
Slide 5: 2023 Women's World Cup
2023 WOMEN‘S WORLD CUP VISIBILITY ON AND OFF THE PITCH SWITZERLAND ~113 MOROCCO PUMA PLAYERS ~95% OF WHICH WORE OUR WOMEN‘S FIT BOOTS
Slide 6: ion
ion root oeeesne copadiidaaa’ VER.FASTER. FOREVER.FASTER. FOREVER.FASTER. FOREVER.FASTER. FOREVER.FASTER. FOREVER.FASTER. FOREVER.FASTER. FOREVER. FASTE
Slide 7: Welcome to the PUMA family
WELCOME TO THE PUMA FAMILY KAI HAVERTZ • 24 YEARS • GERMAN MIDFIELDER • CHELSEA FC 2020-2023; CL WINNER • FC ARSENAL LONDON SINCE 2023 • GERMAN NATIONAL TEAM
Slide 8: Neymar Jr. breaks Pelé's historic record
NEYMAR JR. 78 BREAKS PELÉ’S HISTORIC RECORD GOALS
Slide 9: World Athletics Championships Budapest
WORLD ATHLETICS CHAMPIONSHIPS BUDAPEST 23
Slide 10: Welcome to the PUMA House
WELCOME TO THE PUMA HOUSE 178 Athletes & 18 Federations 135 Friends & Family 2 Press Conferences 75+ Interviews 85+ Media & 40+ Outlets P10 P10
Slide 11: Continuing to increase visibility
CONTINUING TO INCREASE VISIBILITY NITROTM EXPERIENCE WITH 40+ ACCOUNTS AT COLOGNE MARATHON
Slide 12: Dennis Schröder
BASKETBALL WORLD CHAMPION & MVP DENNIS SCHRÖDER P12
Slide 13: Signature basketball
SIGNATURE BASKETBALL MB.03 LAFRANCÉ TOXIC P13
Slide 14: Continuous market share gains in all performance categories
CONTINUOUS MARKET SHARE GAINS IN ALL PERFORMANCE CATEGORIES FOOTBALL PERFORMANCE RUNNING BASKETBALL GOLF
Slide 15: Strengthening dominance in motorsport
STRENGTHENING DOMINANCE IN MOTORSPORT PUMA MOTORSPORT / F1 PARTNERSHIP OVERVIEW FERRARI: LONG-TERM CONTRACT EXTENSION WILLIAMS RACING: NEW CONTRACT + other smaller tactical partnerships
Slide 16: Welcome A$AP Rocky
A$AP ROCKY WELCOME A$AP ROCKY 2024 PILLARS OF INFLUENCE CREATIVE DIRECTOR PUMA X F1 PLACEHOLDER P16
Slide 17: PUMA x Fenty launch
MARKET PUMA X FENTY LAUNCH Known for it s many shops and markets, we can use the ent rance to Leadenhall Market as t he THE AVANTI locat ionBY RIHANNA to place the oversized ball installation. PHYSICAL & VIRTUAL CGI ACTIVATIONS When shooting the video we can make sure to capt ure ot her iconic londo
Slide 18: PUMA x Fenty launch
PUMA X FENTY LAUNCH THE AVANTI BY RIHANNA OUT OF HOME ACTIVATIONS Milan PUMA.COM 100% SELL-THROUGH ON DAY 1 Shinzo Paris INSTORE EXECUTIONS Dubai Mall Berlin Mexico City NYC Times Square P18 London LA Melbourne
Slide 19: Capitalizing on the terrace trend
CAPITALIZING ON THE TERRACE TREND PALERMO
Slide 20: Elevate the brand
ELEVATE THE BRAND EXTERNAL VALIDATION – SNEAKER FREAKER Q3 HOTTEST SNEAKER
Slide 21: Best brand moments are yet to come
BEST BRAND MOMENTS ARE YET TO COME 2023 HIGHLIGHTS FORMULA 1 TERRACE TREND RIHANNA SKATE TREND LAS VEGAS GP PALERMO FENTY DROPS SUEDE XL
Slide 22: Progress on priorities
PROGRESS ON PRIORITIES
Slide 23: Consistent strategic priorities
CONSISTENT STRATEGIC PRIORITIES OVERVIEW ELEVATE THE BRAND ENHANCE IMPROVE PRODUCT DISTRIBUTION EXCELLENCE QUALITY FOCUS ON PEOPLE FIRST EVOLVE SUSTAINABILITY DIGITALIZE OUR INFRASTRUCTURE
Slide 24: Fewer Bigger Better
FOCUS ON BRAND ELEVATION RECAP: MEASURES TO FURTHER ELEVATE THE BRAND RELEVANCY CONSUMER-CENTRICITY INVESTMENTS EFFECTIVENESS FEWER BIGGER BETTER ANCHOR DEEPLY IN PUT THE CONSUMER AT THE FURTHER ELEVATE PUMA’S IMPLEMENT FEWER / BIGGER / MINDSET & HEART HEART OF EVERYTHING WE DO POSITIONING BETTER CA
Slide 25: Progress on marketing org & partnerships
PROGRESS ON MARKETING ORG & PARTNERSHIPS STATUS UPDATE ON BRAND ELEVATION NEW MARKETING ORGANIZATION NEW ANNOUNCEMENTS 2024 BRAND CAMPAIGN A$AP ROCKY & RIHANNA
Slide 26: Strengthening the organization in the U.S.
STRENGTHENING THE ORGANIZATION IN THE U.S. KEY SALES LEADERSHIP ANNOUNCEMENT ANDREW “RUDI” RUDOLPH NEW SENIOR VICE PRESIDENT SALES
Slide 27: Strategic partnership PUMA & NXTPRO
STRATEGIC PARTNERSHIP PUMA & NXTPRO STRONG STATEMENT IN U.S. YOUTH BASKETBALL • Official partner and outfitter of all NXTPRO camps and circuits as of October 2023 • NXTPRO operates over 35 tournaments throughout the year, featuring more than 15,000 players
Slide 28: Strengthening roster of athletes in China
STRENGTHENING ROSTER OF ATHLETES IN CHINA PROGRESS WITH BRAND AMBASSADORS & IMPROVEMENT IN WORKING WITH KOLS Q2 SIGNINGS Q3 SIGNINGS CHENG XIAO ICE ZHANG RU QI XIANGYU ACTRESS RAPPER BASKETBALL PLAYER BREAK DANCER CHINESE NATIONAL TEAM CHINESE NATIONAL TEAM
Slide 29: Strengthening performance credibility
STRENGTHENING PERFORMANCE CREDIBILITY OVERVIEW OF KEY SPORTS EVENTS IN CHINA IN Q3 MB.03 LAFRANCÉ MANCHESTER CITY Q3 BREAKTHROUGH ASIAN RUNWAY SHOW TROPHY TOUR PACK LAUNCH EVENT GAMES SHANGHAI SHANGHAI / BEIJING CHENGDU HANGZHOU
Slide 30: Elevating the brand
ELEVATING THE BRAND PUMA X FENTY POP-UP EVENT IN SHANGHAI
Slide 31: Best service partner to our wholesalers
BEST SERVICE PARTNER TO OUR WHOLESALERS FIRST SPORTING GOODS COMPANY TO WIN PRESTIGIOUS SCHUHKURIER AWARD
Slide 32: Agenda
AGENDA 1. BUSINESS UPDATE Q3 2023 a) BRAND UPDATE b) PRIORITIES UPDATE 2. FINANCIAL UPDATE Q3 2023 3. OUTLOOK 2023 FINA NCIA LS
Slide 33: Q3 2023 / YTD 2023 net sales growth
Q3 2023 YTD 2023 +6.0% +10.3% *Q3 & YTD 2023 Net Sales Growth vs last year (in % / currency adjusted)
Slide 34: Q3 2023 – Sales breakdown
Q3 2023 – SALES BREAKDOWN NET SALES VS LAST YEAR (IN %, CURRENCY ADJUSTED) BENEFITTING FROM STRONG DIVERSIFICATION ACROSS CHANNELS, PRODUCT DIVISIONS & REGIONS BY CHANNEL BY DIVISION BY REGION WHOLESALE +3.1% TOTAL DTC +17.4% FOOTWEAR +11.3% EMEA +9.9% BRICK & MORTAR +21.8% APPAREL -0.5% AMERICAS +2
Slide 35: YTD September 2023 – Sales breakdown
YTD SEPTEMBER 2023 – SALES BREAKDOWN NET SALES VS LAST YEAR (IN %, CURRENCY ADJUSTED) BENEFITTING FROM STRONG DIVERSIFICATION ACROSS CHANNELS, PRODUCT DIVISIONS & REGIONS BY CHANNEL BY DIVISION BY REGION WHOLESALE +7.3% TOTAL DTC +22.0% FOOTWEAR +19.0% EMEA +19.1% BRICK & MORTAR +23.2% APPAREL +1.6%
Slide 36: YTD September 2023 – Sales breakdown
YTD SEPTEMBER 2023 – SALES BREAKDOWN QUARTERLY NET SALES BY MARKET VS LAST YEAR (IN %, CURRENCY ADJUSTED) BENEFITTING FROM STRONG DIVERSIFICATION ACROSS REGIONS Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 YTD 2023 EEA +26.3% +25.4% +20.1% +29.1% +24.7% +23.4% +9.0% -1.4% +9.1% EE
Slide 37: Operating performance
OPERATING PERFORMANCE
Slide 38: Q3 2023 – Operating performance
Q3 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP Q3 2022 Q3 2023 DEVIATION NET SALES 2,354.4 2,311.1 -1.8% (%) (+6.0% ca) GROSS PROFIT 1,102.4 1,088.7 -1.2% (in EUR M/ % of Net Sales) (46.8%) (47.1%) (+0.3%pts)
Slide 39: Q3 2023 – Operating performance
Q3 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP Q3 2022 Q3 2023 DEVIATION NET SALES 2,354.4 2,311.1 -1.8% (%) (+6.0% ca) GROSS PROFIT 1,102.4 1,088.7 -1.2% (in EUR M/ % of Net Sales) (46.8%) (47.1%) (+0.3%pts) Q2 Q3 CURRENCY EFFECTS ↓ ↓ PROMOTIONS PRICING SOURCI
Slide 40: Q3 2023 – Operating performance
Q3 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP Q3 2022 Q3 2023 DEVIATION NET SALES 2,354.4 2,311.1 -1.8% (%) (+6.0% ca) GROSS PROFIT 1,102.4 1,088.7 -1.2% (in EUR M/ % of Net Sales) (46.8%) (47.1%) (+0.3%pts) OPEX* -844.7 -852.4 -0.9% (in EUR M/ % of Net Sales)
Slide 41: Balance sheet KPIs
BALANCE SHEET KPIS VS LAST YEAR (IN EUR M, REPORTED CURRENCY) PUMA GROUP SEP 30TH 2022 SEP 30TH 2023 DEVIATION INVENTORIES 2,350.2 1,874.1 -20.3% TRADE RECEIVABLES 1,290.3 1,457.3 +12.9% TRADE PAYABLES 1,810.2 1,230.1 -32.0% WORKING CAPITAL 1,339.0 1,794.9 +34.0%
Slide 42: Momentum
MOMENTUM MOMENTUM SALES & EBIT INVENTORY FY OUTLOOK IN LINE WITH BACK TO WELL ON TRACK EXPECTATIONS NORMAL MOMENTUM
Slide 43: Agenda
AGENDA 1. BUSINESS UPDATE Q3 2023 a) BRAND UPDATE b) PRIORITIES UPDATE 2. FINANCIAL UPDATE Q3 2023 3. OUTLOOK 2023 FINA NCIA LS
Slide 44: Q3 2023 / YTD 2023 net sales growth
Q3 2023 YTD 2023 +6.0% +10.3% *Q3 & YTD 2023 Net Sales Growth vs last year (in % / currency adjusted)
Slide 45: Challenging environment
CHALLENGING ENVIRONMENT HIGH-LEVEL OVERVIEW OF KEY EXTERNAL CHALLENGES GEO-POLITICAL MACRO-ECONOMIC MUTED CONSUMER CURRENCY SPEED OF RECOVERY RISKS HEADWINDS SENTIMENT VOLATILITY IN CHINA & THE U.S.
Slide 46: Focusing on our controllables
FOCUSING ON OUR CONTROLLABLES SUMMARY INCREASING BRAND HEAT & PRODUCT NEWNESS BEST SERVICE PARTNER TO FASTEST & MOST AGILE VISIBILITY PIPELINE OUR WHOLESALERS TEAM IN THE INDUSTRY
Slide 47: Fully on track to achieve outlook 2023
FULLY ON TRACK TO ACHIEVE OUTLOOK 2023 NET SALES & EBIT OUTLOOK FULL-YEAR 2022 OUTLOOK 2023 NET SALES (in EUR m) 8,465 HIGH SINGLE-DIGIT GROWTH (CURRENCY-ADJUSTED) EBIT 641 BETWEEN €590 – 670 MILLION (in EUR m / % of Net Sales) (7.6%)
Slide 48: Capital Markets Day 2024 - Save the date
CAPITAL MARKETS DAY 2024 - SAVE THE DATE KEY FACTS WHAT WHEN WHERE CAPITAL 29 FEB & 01 MAR PUMA SE HQ MARKETS 2024 HERZOGENAURACH DAY (2 X HALF-DAY) (GERMANY)
Slide 49: We are hungry
WE ARE HUNGRY WE ARE HUNGRY WE ARE HUNGRY
Slide 50: Q&A
Q&A