Slide 1: Earnings Call Q2 2023
PUMA EARNINGS CALL Q2 2023 JULY 26TH, 2023
Slide 2: Agenda
AGENDA 1. BUSINESS UPDATE Q2 2023 2. FINANCIAL UPDATE Q2 2023 3. STRATEGIC PRIORITIES UPDATE 4. OUTLOOK 2023
Slide 3: Great brand & product momentum in Q2
BRAND MOMENTUM BRAND MOMENTUM BRAND MOMENTUM GREAT BRAND & PRODUCT MOMENTUM IN Q2
Slide 4: Premier League champions
PREMIER CHAMPIONS FA LEAGUE LEAGUE CUP
Slide 5: Xavi Simons – our new king on the pitch
XAVI SIMONS – OUR NEW KING ON THE PITCH PUMA SIGNS DUTCH NATIONAL & RB LEIPZIG PLAYER
Slide 6: Pushing for gender equality in football
PUSHING FOR GENDER EQUALITY IN FOOTBALL WOMEN’S FOOTBALL / 2023 WOMEN’S WORLD CUP WOMEN’S-SPECIFIC FITINALLTHREESILOS WOMEN’S WORLD CUP 2023 ~90 PLAYERS >10% OF ALL WORLD CUP PLAYERS MOROCCO SWITZERLAND
Slide 7: Our PUMA track & field athletes are breaking records
OUR PUMA TRACK & FIELD ATHLETES ARE BREAKING RECORDS 🥇🥇🥇
Slide 8: PUMA signs sprint sensation Julien Alfred
PUMA SIGNS SPRINT SENSATION JULIEN ALFRED ONE OF THE GREATEST UP-AND-COMING 100M RUNNERS COMPETING FOR GOLD AT THE 2023 WORLD CHAMPIONSHIPS IN BUDAPEST
Slide 9: Increasing visibility
INCREASING VISIBILITY PRESENCE AT RUNNING EVENTS WORLDWIDE BOSTON WOMEN’S 10K HANNOVER MARATHON SINGAPORE MARATHON COLOGNE MARATHON SAN FRANCISCO MARATHON
Slide 10: Back in the winner's circle
BACK IN THE WINNER’S CIRCLE RICKIE FOWLER
Slide 11: Hoops amplification
HOOPS AMPLIFICATION THE MELO FASTER TOUR 233M ESTIMATED IMPRESSIONS FOR SOCIAL/MEDIA
Slide 12: Scoot Henderson
SCOOT HENDERSON BRINGING NEWNESS TO OUR SIGNATURE PORTFOLIO THE SCOOT LAUNCHING DEC 21ST 2023 NBA DRAFT 4.9M VIEWERS (58% OUTSIDE THE USA) NO 3 PICK PORTLAND TRAILBLAZERS
Slide 13: Formula 1 x PUMA
FORMULA 1 X PUMA COMPREHENSIVE & LONG-TERM PARTNERSHIP
Slide 14: Market share gains in all performance categories
MARKET SHARE GAINS IN ALL PERFORMANCE CATEGORIES FOOTBALL PERFORMANCE RUNNING BASKETBALL GOLF
Slide 15: Elevate the brand
ELEVATE THE BRAND EXTERNAL VALIDATION – SNEAKER FREAKER
Slide 16: Terrace trend
TERRACE TREND THE PUMA PALERMO IS BACK
Slide 17: Elevate the brand – Noah
ELEVATE THE BRAND NOAH - KEY COLLAB IN Q2
Slide 18: Rihanna's first PUMA products launching in Q3
RIHANNA’S FIRST PUMA PRODUCTS LAUNCHING IN Q3 PUMA X FENTY PRODUCT DROPS IN H2 2023 OBJECTIVE OBJECTIVE A UNIQUE POV BRING BACK AN ICON IN THE TERRACE SPACE THROUGH THE LENS OF SKATE DROP 1 SEPTEMBER DROP 3 DECEMBER DROP 2 NOVEMBER
Slide 19: 2023 Highlights
2023 HIGHLIGHTS THE BEST IS YET TO COME… PUMA MB.03 LAUNCH 1ST FENTY X PUMA DROP LAS VEGAS F1 RACE AUGUST SEPTEMBER NOVEMBER
Slide 20: Partnerships
\y -) PORTH = oer rE ih ee. ~ | ' e 4 ¥- PARTNERS i rs +" > i ak ee WITTAN.INCREDIBLY SOFT FEEL 0 FOREVER. FASTER.
Slide 21: Supplier Summit
PUMA SUPPLIER SUMMIT HERZOGENAURACH 14.-16. JUNE >80 SUPPLIERS FIRST SUPPLIER SUMMIT IN HERZO AFTER >10 YEARS
Slide 22: Select Summit
PUMA SELECT SUMMIT PARIS FASHION WEEK 20.-23. JUNE >70 CUSTOMERS
Slide 23: PUMA well on track to achieve full-year outlook after Q2
PUMA WELL ON TRACK TO ACHIEVE FULL-YEAR OUTLOOK AFTER Q2
Slide 24: Currency adjusted net sales growth Q2 2023
+11.1% CURRENCY ADJUSTED NET SALES GROWTH Q2 2023 VS LAST YEAR
Slide 25: Q2 2023 – Sales breakdown
Q2 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 +6.9% TOTAL DTC +26.5% FOOTWEAR +18.2% EMEA +25.0% BRICK & MORTAR +30.4% APPAREL +4.2% AMERICAS -
Slide 26: H1 2023 – Sales breakdown
H1 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 +9.6% TOTAL DTC +24.6% FOOTWEAR +23.5% EMEA +25.2% BRICK & MORTAR +24.0% APPAREL +2.9% AMERICAS -
Slide 27: YTD 2023 – Sales breakdown
YTD 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 H1 2023 EEA +26.3% +25.4% +20.1% +29.1% +24.7% +23.4% +9.0% +16.1% EEMEA +22.1% +7.4% +12.8%
Slide 28: Operating performance
OPERATING PERFORMANCE FOREVER. FASTER.
Slide 29: Q2 2023 – Operating performance
Q2 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) GROSS PROFIT MARGIN PRESSURE MAINLY DUE TO CURRENCIES, SOURCING PRICES AND PROMOTIONS PUMA GROUP Q2 2022 Q2 2023 DEVIATION NET SALES 2,002.0 2,120.7 +5.9% (%) (+11.1% ca) GROSS PROFIT 930.9 949.8 +2.0% (in EUR M/ % of Net Sal
Slide 30: Q2 2023 – Operating performance
Q2 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) GROSS PROFIT MARGIN PRESSURE MAINLY DUE TO CURRENCIES, SOURCING PRICES AND PROMOTIONS PUMA GROUP Q2 2022 Q2 2023 DEVIATION NET SALES 2,002.0 2,120.7 +5.9% (%) (+11.1% ca) GROSS PROFIT 930.9 949.8 +2.0% (in EUR M/ % of Net Sal
Slide 31: H1 2023 – Operating performance
H1 2023 – OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP H1 2022 H1 2023 DEVIATION NET SALES 3,914.1 4,308.3 +10.1% (%) (+12.7% ca) GROSS PROFIT 1,833.0 1,966.8 +7.3% (in EUR M/ % of Net Sales) (46.8%) (45.7%) (-1.2%pts) OPEX* -1,490.7 -1,675.9 -12.4% (in EUR M/ % of Net
Slide 32: Inventory levels normalized in line with expectations
INVENTORY LEVELS NORMALIZED IN LINE WITH EXPECTATIONS INVENTORY DEVELOPMENT QUARTERLY INVENTORY DEVELOPMENT IN 2022/23 (IN % VS LY) 72.3% 50.4% 42.9% 32.2% 32.7% 8.1% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23
Slide 33: Balance sheet KPIs
BALANCE SHEET KPIS VS LAST YEAR (IN EUR M, REPORTED CURRENCY) PUMA GROUP JUN 30TH 2022 JUN 30TH 2023 DEVIATION INVENTORIES 1,984.4 2,145.9 +8.1% TRADE RECEIVABLES 1,189.8 1,348.4 +13.3% TRADE PAYABLES 1,657.1 1,457.3 -12.1% WORKING CAPITAL 1,067.4 1,693.0 +58.6% CASH & CASH EQUIVALENTS 498.4 307.9 -
Slide 34: Momentum
MOMENTUM MOMENTUM CONTINUED SALES AND INVENTORY BRAND EBIT BACK TO MOMENTUM ON TRACK NORMAL MOMENTUM
Slide 35: 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 STRATEGIC PRIORITIES ENHANCE PRODUCT EXCELLENCE FOCUS ON PEOPLE FIRST IMPROVE DISTRIBUTION QUALITY EVOLVE SUSTAINABILITY DIGITALIZE OUR INFRASTRUCTURE
Slide 36: Brand, product, distribution
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 ENHANCE IMPROVE PRODUCT DISTRIBUTION EXCELLENCE QUALITY FOCUS ON PEOPLE FIRST EVOLVE SUSTAINABILITY DIGITALIZE OUR INFRASTRUCTURE
Slide 37: Elevate the brand
ELEVATE THE BRAND
Slide 38: Recap: Focus on brand elevation
RECAP: FOCUS ON BRAND ELEVATION ELEVATE THE BRAND CLEAR WAY FORWARD TO BECOME A DISTINCTIVE GLOBAL SPORTS BRAND RELEVANCY CONSUMER- INVESTMENTS EFFECTIVENESS CENTRICITY ANCHOR DEEPLY IN PUT THE CONSUMER FURTHER ELEVATE IMPLEMENT FEWER MINDSET & HEART AT THE HEART OF PUMA’S POSITIONING / BIGGER / BET
Slide 39: Organizational foundation established
ORGANIZATIONAL FOUNDATION ESTABLISHED FUTURE GEOGRAPHIC SETUP OF GLOBAL MARKETING ORGANIZATION LONDON • Global Entertainment Marketing HERZO BOSTON • Global Marketing Hub LOS ANGELES • U.S. Marketing Hub SEOUL • Global • Global Entertainment Marketing SHANGHAI Entertainment Marketing • China Marketi
Slide 40: Richard Teyssier – new leadership in place
NEW LEADERSHIP IN PLACE RICHARD TEYSSIER ELEVATE THE BRAND ESTABLISHED THE ORGANIZATIONAL 17 YEARS OF LEADING FOUNDATION IN BRAND & MARKETING GLOBAL MARKETING FUNCTIONS AT MARS INC. > 12 YEARS OF GENERAL MANAGEMENT AT PUMA FRANCE & PUMA EUROPE
Slide 41: Must win in the U.S.
Shes back. v iN PUMA x COCOMELON
Slide 42: Continued softness in the U.S.
CONTINUED SOFTNESS IN THE U.S. WIN IN THE U.S. Q2 IN LINE WITH EXPECTATIONS CHALLENGING MARKETPLACE Q2 IN LINE WITH Q1 TREND CONTINUED SOFTNESS AND MUTED SENTIMENT IN THE IN LINE WITH EXPECTATIONS, Q2 FINISHED ON PAR WITH Q1; MARKET MAINLY DUE TO DECLINE OF OFF-PRICE BUSINESS
Slide 43: Recap: Strategic priorities in the U.S.
RECAP: STRATEGIC PRIORITIES IN THE U.S. WIN IN THE U.S. CLEAR STRATEGY IN PLACE TO RETURN TO GROWTH IN 2024 BRAND PRODUCT DISTRIBUTION ORGANIZATION ELEVATE & STRENGTHEN EMPOWER LOCAL PRODUCT REBALANCE OUR RETAIN & ATTRACT CREDIBILITY AS A SPORTS CREATION DISTRIBUTION QUALITY TOP TALENTS BRAND
Slide 44: Progress on strategic priorities
PROGRESS ON STRATEGIC PRIORITIES WIN IN THE U.S. CONTINUED MOMENTUM IN #3 NBA DRAFT PICK PERFORMANCE CATEGORIES & SIGNIFICANT INVENTORY REDUCTION BRAND PERFORMANCE DISTRIBUTION INVENTORY ELEVATION MOMENTUM QUALITY REDUCTION CONTINUED FOCUS ON CONTINUED GROWTH IN CONTINUED GROWTH IN DTC NORMALIZATION
Slide 45: Strong lineup for H2 2023
STRONG LINEUP FOR H2 2023 WIN IN THE U.S. HIGH U.S.-RELEVANCE OF ALL MAJOR UPCOMING BRAND HEAT MOMENTS & PRODUCT LAUNCHES
Slide 46: Rebound in China
TURBO-CHARGE REBOUND IN CHINA
Slide 47: Continued gradual improvement
CONTINUED GRADUAL IMPROVEMENT REBOUND IN CHINA CONTINUED BUSINESS IMPROVEMENT DESPITE MUTED MARKET ENVIRONMENT MUTED CONSUMER SENTIMENT GRADUAL BUSINESS IMPROVEMENT MARKET ENVIRONMENT & CONSUMER SENTIMENT ONLY BUSINESS GROWTH ACCELERATED IN Q2 2023, SUPPORTED GRADUALLY IMPROVING BY A LOW COMPARABLE
Slide 48: Recap: Strategic priorities in China
RECAP:STRATEGIC PRIORITIES IN CHINA REBOUND IN CHINA STRATEGY IN PLACE TO TURBO-CHARGE REBOUND IN CHINA BRAND PRODUCT DISTRIBUTION ORGANIZATION STRENGTHEN CREDIBILITY LEVERAGE LOCAL-4-LOCAL RE-ENGAGE & RE-EXCITE RETAIN & ATTRACT AS A GLOBAL SPORTS SETUP AND INCREASE CONSUMERS ONLINE AND TOP TALENTS
Slide 49: Progress with brand ambassadors
PROGRESS WITH BRAND AMBASSADORS REBOUND IN CHINA ✓ ✓ GRADUAL IMPROVEMENT IN WORKING WITH KOLS & STRENGTHENING OF ATHLETES' ROSTER CHENG XIAO ICE BASKETBALL BREAK ACTRESS RAPPER PLAYER DANCER AS OF APRIL 2023 AS OF JUNE 2023 COMING IN Q3 COMING IN Q3
Slide 50: New local leadership in place
NEW LOCAL LEADERSHIP IN PLACE REBOUND IN CHINA STRENGTHENED THE ORGANIZATION WITH KEY LOCAL TALENT SHIRLEY LI DAVID LU GENERAL MANAGER PUMA CHINA SALES DIRECTOR PUMA CHINA
Slide 51: 2023 as a transitional year
2023 AS A TRANSITIONAL YEAR REBOUND IN CHINA ON TRACK FOR REBOUND IN 2023 & BUILDING THE FOUNDATION FOR SUCCESS IN 2024+ STRATEGY INVENTORY OPTIMIZATION OF EXECUTION REDUCTION STORE PORTFOLIO CONTINUE TO EXECUTE FINALIZE INVENTORY FINALIZE OPTIMIZATION OF OUR STRATEGIC OPTIMIZATION IN H2 2023 PARTNE
Slide 52: Outlook
FIFA J WOMEN'S WORLD CUP WORLD ATHLETICS.
Slide 53: External risks
EXTERNAL RISKS CHALLENGING VOLATILE CHINA’S EXTERNAL RISKS MACROECONOMIC ENVIRONMENT RETAIL DEMAND ECONOMIC RECOVERY EXTERNAL RISKS
Slide 54: Continued momentum
CONTINUED MOMENTUM CONTINUED SALES AND INVENTORY CONTINUED MOMENTUM BRAND MOMENTUM EBIT ON TRACK BACK TO NORMAL CONTINUED MOMENTUM
Slide 55: Re-confirmed outlook for 2023
RE-CONFIRMED OUTLOOK FOR 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 56: We are hungry
WE ARE HUNGRY WE ARE HUNGRY WE ARE HUNGRY
Slide 57: Forever. Faster.
FOREVER. FASTER. NY