STRATEGY

2020
ROADSHOW PRESENTATION
 PORTFOLIO OF AUTHENTIC
SPORTS BRANDS
THE BEST THE BEST THE BEST
SPORTS FITNESS GOLF
BRAND BRAND BRAND
UNIQUE GLOBAL GEOGRAPHIC PLATFORM

GLOBAL PLAYER MITIGATION LEVERAGE

1 OF 2 GLOBAL POWER STRONG POSITION

INDUSTRY LEADERS OF PORTFOLIO TO CAPTURE GROWTH
OPPORTUNITIES
 ROUTE 2015
MOST COMPREHENSIVE PLAN THE GROUP EVER CREATED

WE ACHIEVED A LOT

FACED CHALLENGES AND MISSED GOALS

LEARNED FROM PAST STRATEGIC CYCLE

 …DELIVERED RESULTS…
EMERGING MARKETS
CN REVENUE GROWTH CN SALES NEO BUSINESS =

>40% €1,000,000,000
BILLION

CONTROLLED SPACE ECOM REVENUES =

% OF
BUSINESS €500 MIO
…BUT ALSO SOME DISAPPOINTMENTS

DILUTED BRAND DESIRABILITY

LOSS OF AGILITY AND SPEED

UNDERPERFORMED IN NORTH AMERICA

REEBOK TRANSFORMATION TOOK TOO LONG

PROFITABILITY SHORTFALL
 ROUTE 2015 KEY TAKEAWAYS

WE NEED TO BUILD A OUR PROCESSES NEED TO

TRULY CONSUMER-LED DELIVER ON INCREASING
ORGANIZATION OUR CONSUMER HAS CONSUMER NEEDS
TO BE AT THE HEART
OF EVERYTHING WE DO
WE NEED TO WIN AND HOW WE DO IT
WHEN WE FOCUS
IN GLOBAL ‘HALO’
WE WIN
MARKETS
CREATING THE
NEW
3 STRATEGIC CHOICES TAKEN
SPEED CITIES OPEN
SOURCE
 OUR STRATEGY FOR
CREATING THE NEW
OPEN SOURCE

TOP LINE & MARKET

SHARE GROWTH
BRAND GROSS MARGIN
DESIRE EXPANSION
OPERATING
LEVERAGE
 FINANCIAL AMBITION

HIGH-SINGLE-DIGIT HIGH-SINGLE-DIGIT HIGH-SINGLE-DIGIT MID-SINGLE-DIGIT

NET SALES CAGR (2015-2020) – CURRENCY-NEUTRAL

NET INCOME: ~15% CAGR (2015–2020)

 GROWTH DRIVERS

OPEN SOURCE
TOP LINE & MARKET
SHARE GROWTH

BRAND GROSS MARGIN

DESIRE EXPANSION

OPERATING LEVERAGE

FOCUS
KEY CATEGORIES DISTRIBUTION
MARKETS
 PROFITABILITY
KEY LEVERS

OPEN SOURCE
TOP LINE & MARKET
SHARE GROWTH

BRAND GROSS MARGIN

DESIRE EXPANSION

OPERATING LEVERAGE

GROSS MARGIN OPERATING LEVERAGE

Speed to market Organizational set-up
Range reduction Retail productivity
Controlled space roll-out eCommerce expansion
Factory automation Focus on key product franchises
 AGILITY
WIN

ACCELERATE 2019
2020

IMPACT 2018

BUILD 2017
BRING
THE NEW 2016

2015
 OPERATING WORKING CAPITAL 30%

22.4%
21.3% 20%
20.8% 20.4% 20.0%

10%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

OWC
in % of NET SALES
 CAPITAL EXPENDITURE 6%

5%

4%

3.8%
3.3% 3%
2.8% 2.9%

2.2% 2%

1%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAPEX
in % of NET SALES
3.0 SHAREHOLDER RETURNS 60%

53.9%
2.5
50%

2.0
37.5% 40%
35.7%
34.1%
1.5
29.5%
30%
1.0
1.50 1.50
1.35
20%
0.5 1.00
0.80

0.0 10%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

DIVIDEND PAYOUT RATIO (in %)

DIVIDEND (in €)
NEW SEGMENTAL REPORTING
STRUCTURE

WESTERN EUROPE
NORTH AMERICA
GREATER CHINA
RUSSIA/CIS OTHER BUSINESSES
LATIN AMERICA
JAPAN
MEAA

OTHER CENTRALLY
MANAGED BRANDS
GLOBAL BRANDS
OPEN SOURCE

BRAND
DESIRE
FOCUS ON SPORT

SPORT SPORTSWEAR STREETWEAR COLLABS

BEST
SPORTS BRAND

ORIGINAL
SPORTS BRAND

SPORTSWEAR
FOR ALL
FOCUSED ON
ORGANIZATION
CONSUMERS
CLEAR LINE OF SITE FOR EACH CATEGORY

FOOTBALL RUNNING BASKETBALL TRAINING OUTDOOR HBS ORIGINALS STYLE DIGITAL

SPORTS

STRATEGY

FUTURE

CREATIVE
DIRECTION

BRAND MGT

CTC
FOCUS ON CREATORS

MALE FEMALE YOUNG STREETWEAR

ATHLETE ATHLETE ATHLETE HOUND

AMPLIFIER

VALUE
 LONDON
PARIS
NEW YORK
TOKYO
LOS ANGELES SHANGHAI

FOCUS ON
KEY CITIES
FOCUS ON
AMERICA
FOCUS ON
FOOTWEAR
LOYALTY FROM THE FEET UP
FOCUS ON FRANCHISES

30% OF FTW NS
BY 2017
MEAN MORE BY
DOING LESS
REDUCE BY
25%
FOCUS CATEGORIES

LEAD GROW AMPLIFY AUTHENTICATE

#1 IN EVERY MARKET DRAMATIC MARKET LARGEST BUSINESS REGIONAL PLAYERS/
SHARE GAINS IN EVERY MARKET GROWTH ENGINES

FOOTBALL RUNNING TRAINING BASKETBALL

ORIGINALS NEO HEARTBEAT SPORTS
DIGITAL
OUTDOOR
WOMEN
FEMALE ATHLETE

VERTICAL VERSATILE
WANTS TO MAKE USES SPORT TO MAKE
A DIFFERENCE IN HER SPORT A DIFFERENCE IN HER LIFE
WOMEN’S PLATFORMS

VERTICAL VERSATILE
SPECIALIZED FOOTWEAR MUST HAVES OUTDOOR GEAR
COMPRESSION GEAR BRAS RUNNING GEAR
UNIFORMS TEES & TANKS TRAINING FTWR
SHORTS & TIGHTS STUDIO WEAR
RUNNING SHOES

SPORT STYLE
UNRIVALED RANGES
FROM ORIGINALS, NEO, Y-
3
FOCUS
MARKETING
REASONS TO BELIEVE LOCKER ROOM
REASONS TO BUY COMMUNITIES
EVERYTHING COMES FROM SPORT
CREATE FOR THE CREATOR
6 CITIES
FOOTWEAR FRANCHISES
CATEGORY ROLES
WOMEN
MARKETING SPEND
OPEN SOURCE

BRAND
DESIRE
OPEN SOURCE

CREATORS PARTNERS

COMMUNITY CUSTOMERS
UNLEASH ACCESS

ARCHIVES PROTO STUDIOS TECH AND FACTORIES

MATERIAL LABS
CREATOR FARMS
LONDON BERLIN
DESIGN STUDIO DESIGN STUDIO

PARIS
LOS ANGELES NYC BROOKLYN DESIGN STUDIO TOKYO
EIM OFFICE DESIGN STUDIO DESIGN STUDIO
SHANGHAI
DESIGN STUDIO
OPEN SOURCE

CREATORS PARTNERS

COMMUNITY CUSTOMERS
NEWSROOMS
MOSCOW
PORTLAND LONDON
HERZO
NEW YORK

TOKYO
SHANGHAI

RIO
GOAL
30% OF SHARED CONTENT
IS CREATED BY CONSUMERS
BY 2017
OPEN SOURCE

CREATORS PARTNERS

COMMUNITY CUSTOMERS
PARTNERS
OPEN SOURCE

CREATORS PARTNERS

COMMUNITY CUSTOMERS
OPEN SOURCE

BRAND
DESIRE
SPEED
FIRST FAST SPORTS
COMPANY
IN THE INDUSTRY
CHALLENGING
THE INDUSTRY STANDARD

WE ARE SPORTS INDUSTRY

(FOOTWEAR) STANDARD

45 days 12-18 months

INTRODUCED TWO
NEW BUSINESS MODELS

IN-SEASON PLANNED
CREATION RESPONSIVENESS
FOUR GAME-CHANGING
CAPABILITIES

SPACE LED DATA DIGITAL CREATION MAXIMUM

BRAND DRIVEN ENABLED MODULAR DESIGN AGILITY
GOAL

50% 20%
OF ALL RANGES FULL-PRICE SELL-THRU
ON SPEED PROGRAMS ACROSS SPEED RANGES
SPEED FACTORY
GERMAN INNOVATION

GERMAN KNIT ROBOTICS BOOST

GOVT MACHINES MACHINES
BMWi STOLL MANZ REUTLINGEN KURZ FÜRTH
SPEED FACTORY
MANUFACTURING UNRESTRICTED BY LOCATION
INVESTMENT INTO INTERNAL EXPERTISE
FIRST FAST SPORTS
COMPANY
IN THE INDUSTRY
SHARE OF VOLUME
SOLD AT FULL PRICE
RISK OF
OVERBUYING
INVENTORY
TURN
AVERAGE MARKDOWN
ON ARTICLES SOLD
€1.5bn €1.7bn

FITNESS

TRADITIONAL SPORTS
 SPENDS
MORE

ACTIVE G LO B A L
P O P U L AT I O N FITNESS
SPEND

AVERAGE FITGEN
CONSUMER CONSUMER
CROSSFI T DANCE YOGA SPIN
COMBAT
SPEED DISTANCE TERRAIN TRAIL
FOUNDATION RETRO RUNNI NG CONTEMPORARY
THE OF
WILL BE

BACK IT!

DESIGN DELIVER
GLOBAL SALES
CONVERTING
BRAND DESIRE
INTO PROFITABLE
AND SUSTAINABLE
BUSINESS GROWTH
DELIVER THE PROMISE
OPEN SOURCE

LEVERAGE SCALE OF
OUR POS NETWORK
DRIVE PRODUCTIVITY
ACROSS OUR
SALES PLATFORM
SHAPE OUR
OWN DESTINY
CREATING THE NEW
OPEN SOURCE
 PURCHAS 7
E

FIND A 5 FEEL & TRY

STORE PRODUCT 6
4

SEEK
APPROVAL

SHARE
3
CONSUMER
JOURNEY
2 BROWSE
ONLINE TODAY’S FEMALE
ATHLETE

GET 1
INSPIRED
OMNI-CHANNEL SOCIAL
MEDIA

SEAMLESS MOBILE ONLINE

CONSUMER
EXPERIENCE CONSUMER

ACROSS ALL
TOUCHPOINTS BIG
DATA
PHYSICAL
STORE

CRM
CAPTURING FULL
SALES POTENTIAL

INVENTORY CLICK & SHIP FROM ENDLESS

CHECK COLLECT STORE AISLE
 SALES
STRATEGY &
EXCELLENC
E
TEAM

OMNI- EXTENDED OMNI-

CHANNEL SUPPLY CHAIN CHANNEL
CRM MODEL TEAM
UNRIVALED
STORE NETWORK

2,900
OWN RETAIL
11,000
FRANCHISE
30+
OWN ECOM

…AND
GROWING
 CIS

WESTERN EUROPE
NORTH AMERICA

LATIN AMERICA

2016 OMNI-CHANNEL CAPABILITIES IN DTC

2017 INTEGRATE KEY ACCOUNTS
PREMIUM
PRESENTATION

HOMECOURT NEIGHBOURHOOD REEBOK FITHUB

PREMIUM EXPERIENCE
IN CONSUMER SERVICE
CONNECT // ENGAGE // INSPIRE
OWN CONCEPT DOUBLE-DIGIT
STORES CAGR BY 2020

PREMIUM PRESENTATION WITH NEW

500-600
STORE FORMATS ADDITIONAL
CONNECT-ENGAGE-INSPIRE SERVICE
STORES
MODEL
LEVERAGE OMNI-CHANNEL
FRANCHISE DOUBLE-DIGIT
CAGR BY 2020
LEVERAGE OWN-RETAIL
CAPABILITIES 3,000
IMPLEMENT HARD FRANCHISE
ADDITIONAL
BUSINESS MODEL
STORES
EXPAND TO NEW GEOGRAPHIES
ECOM
PERSONALISED INTERACTION
EUR
500M X4BY 2020
PRODUCT-LED EXPERIENCE
PRODUCT AVAILABILITY AND
2 BILLION
EXCLUSIVITY
LEVERAGE OMNI-CHANNEL
CREATING THE NEW
OPEN SOURCE
FASTER REACTION TIME
TO CONSUMER TRENDS

IN-SEASON END-2-END SUPPLY LEVERAGE BIG DATA

CREATION AND MODELS AND TECHNOLOGY
PLANNED
RESPONSIVENESS
PROGRAMS
SPEED OF
DECISION MAKING

ACTIVE STREAMLINED REDUCED # OF

MANAGEMENT STANDARDIZED STORE FORMATS
OF OUR CHAIN PROCESS FOR
OPENINGS AND
CLOSINGS
CONCEPT STORE PRODUCTIVITY
NS/SQM – EXCL. CIS

2015 - 2020
NEW SERVICE PHILOSOPHY
BETTER ASSORTMENT AND RANGE
PLANNING
+7%
CAGR
IMPROVED FOCUS ON STAFF TRAINING
ACTIVE SHAPING OF THE CHAIN
FOOTWEAR FOCUS
OMNI-CHANNEL CAPABILITIES

2010 2015
CREATING THE NEW
OPEN SOURCE
WINNING CONSUMERS BY WINNING IN

KEY CITIES
 LONDON
PARIS
NEW YORK
TOKYO
LOS ANGELES SHANGHAI

6 GLOBAL BRAND KEY CITIES

GLOBALLY DRIVEN
TOP PRIORITY
3-PHASE
CITY PLAN
UNDERSTAND CONTROL ACTIVATE &
1SHAPE OF
MARKET 2 THE RIGHT
SPACES 3 SHAPE THE
RIGHT
PLACES
 STRATEGIC SELL-OUT FOCUSED END-2-END
PLANNING INVESTMENT SUPPLY

TOP 20 KA STRATEGY
1

PREMIUM KEY DESTINATION DIGITALIZATION

PRESENTATION DOORS & INNOVATION
RETAIL TO
WHOLESALE
PREDEFINED
SPACE SOLUTIONS

MODULAR
PRODUCT PACKAGES

SIMPLIFIED
PROCESS
WHOLESALE
MANAGED SPACE
FOCUS ON KEY LOCATIONS IN KEY
CITIES
SEGMENTATION OF THE RSM X2
SPACES
CLOSE COLLABORATION WITH TOP
+300KSQM
WHOLESALE MID-SINGLE-
CUSTOMIZED STRATEGIC DIGIT CAGR
PARTNERSHIPS WITH TOP KEY
ACCOUNTS +2 BILLION
EUR
PARTNER WITH SPECIALISTS TO
ADDRESS AUTHENTIC ATHLETES
AND INFLUENCERS
CONTROLLED 2020
60%+
SPACE
ALLOW OUR BRANDS TO SHINE
2015
TURN BRAND HEAT INTO
COMMERCIAL SUCCESS 50%+
2010
37%
ROLES OF MARKETS
WESTERN CIS
EUROPE
NORTH
AMERICA JAPAN
GREATER
CHINA SOUTH KOREA

EMERGING
MARKETS
SEA/PACIFIC
LATIN
AMERICA

LEAD GROW EXTEND

HIGH-SINGLE-DIGIT DOUBLE-DIGIT MID-SINGLE-DIGIT
WESTERN EUROPE // NORTH AMERICA // CIS //
GREATER CHINA // LATIN AMERICA // JAPAN //
EMERGING MARKETS SEA/PACIFIC SOUTH KOREA
 WESTERN
EUROPE
NORTH
AMERICA
GREATER
CHINA

LATIN
AMERICA

80%
OF ABSOLUTE GROWTH
FROM FOCUS MARKETS
DELIVER
THE PROMISE OMNI-CHANNEL
LEADER
IN SPORTING GOODS
WINNING IN 6 GLOBAL
1 LEVERAGE SCALE
OF OUR POS
NETWORK
KEY CITIES
80% OF GROWTH
TO COME FROM 4 KEY
MARKETS

2 DRIVE
PRODUCTIVITY
ACROSS OUR
4X ECOM
INCREASED NS / SQM
SALES PLATFORM PRODUCTIVITY
+1 MILLION SQM OF

3 SHAPE OUR
OWN DESTINY
CONTROLLED SPACE
60%+ OF NS FROM
CONTROLLED SPACE
NORTH AMERICA
KEY
TAKEAWAYS

ONE DESIRABLE SUSTAINABLE DISRUPTIVE

COMPANY BRAND GROWTH
KEY INVESTMENT PRIORITIES

BRAND ANTHEM OPEN SOURCE PREMIUM PRESENTATION

WIN THE LOCKER ROOM SPEED CITY ATTACK

LARGEST BRAND
INVESTMENT EVER
IN AMERICA

MULTI-YEAR MULTI-SPORT MULTI-LEVEL

PLATFORMS
WIN THE LOCKER ROOM
KEY CITIES
GREATER IMPACT WITH GREATER FOCUS

NEW YORK LOS ANGELES CHICAGO MIAMI ATLANTA

BUILD BRAND DESTINATIONS
PREMIUM RETAIL EXPERIENCE

BRAND CENTERS HOMECOURT NEIGHBOURHOOD

OUR FLAGSHIPS BEST OF ADIDAS BEST OF ORIGINALS

55 NEW LOCATIONS IN NEXT 30 MONTHS

ROLE OF CATEGORIES

LEAD GROW AMPLIFY AUTHENTICATE

#1 IN THE US DRAMATIC MARKET LARGEST BUSINESS IN CONSUMER
SHARE GAINS NORTH AMERICA CONNECTIVITY
SOCCER RUNNING TRAINING BASKETBALL
ORIGINALS NEO FOOTBALL
BASEBALL
VOLLEYBALL
LACROSSE
BRINGING TO MARKET

NFL COMBINE YEEZY BOOST LAUNCH NBA ASW EASTBAY

CATALOG
WHY NOW
DELIVER IN 3 PHASES

BUILD GLOBAL RESOURCES DRIVE MARKET SHARE

INFRASTRUCTURE AND DEPLOYED INTO USA GROWTH
MOMENTUM

OVER-INVESTMENT IN THROUGH THE LENS

MARKETING IN OF THE US CONSUMER 2017-2020
NORTH AMERICA
WESTERN EUROPE
WESTERN EUROPE HAS BECOME
ONE ORGANIZATION

ONE ONE ONE

LEADERSHIP INTEGRATED RANGE
ORGANIZATION
ONE EXECUTIVE TEAM BRAND TEAM ONE BUY
ONE P&L EUROPEAN ACCOUNTS ONE STOCK POOL
ONE STRATEGY DIRECT TO CONSUMER
BACKOFFICE
DELIVER THE PROMISE
WE CREATE THE NEW

KEY CATEGORIES
WIN THE
KEY CATEGORIES

FOOTBALL ORIGINALS RUNNING TRAINING

LEAD LEAD GROW AMPLIFY

CREATE
REEBOK FITNESS

FITNESS PUMP CLASSICS

COLLABORATIONS
DELIVER THE PROMISE
WE CREATE THE NEW

KEY CITIES
BE THE MOST VISIBLE
& DESIRED BRAND

PARIS LONDON BARCELONA BERLIN MILAN

3 KEY CITY
PRIORITIES
SHOWCASE CONNECT WIN
BRAND KEY KEY SHOPPING
CENTERS COMMUNITIES DESTINATIONS
DELIVER THE PROMISE
WE CREATE THE NEW

DIRECT TO CONSUMER
5 DTC
PRIORITIES
FOCUS RETAIL ON
BRAND SHOWCASE
2x FRANCHISE
4x ECOM
BEST IN CLASS
CONSUMER SERVICE
DELIVER 100%
OMNI-CHANNEL
DELIVER THE PROMISE
WE CREATE THE NEW

KEY CUSTOMERS
 WIN WITH
THE WINNERS

STRATEGIC PURE PLAYERS FASHION SPORT

KEY ACCOUNTS SPECIALISTS
 4 KEY CUSTOMER
STRATEGIES

SEGMENTATION CONTROLLED E2E SUPPLY B2B

SPACE MODELS E-TAILING
BRAND DESIRE & PROFITABILITY
QUALITY GROWTH
THE BEST GOLF COMPANY
IN THE
OUR MISSION
WORLD
BY THE NUMBERS

CURRENT U.S.
MARKET SHARE 37% 24% CURRENT U.S.
MARKET SHARE

2014 WORLDWIDE WINS vs. COMPETITORS

(PGA, EURO, LPGA, WEB.COM, JAPAN AND CHAMPIONS TOURS)

33
TAYLORMADE
WHAT WE
HAVE DONE
RESIZE BASED DIFFERENTIATED EVOLVED OUR
ON REVENUE THE BRANDS COMMERCIAL
STRATEGY
CLOSED PLANO COMPLEMENTING FOCUS ON
OPEX REVIEW NOT COMPETING SELL THROUGH
OUR
BRANDS
BEST PERFORMANCE EQUIPMENT FOR NATURAL INVITING
PRODUCTS YOUR BODY PERFORMANCE EASY TO HIT
INNOVATION SPORTS INNOVATION PREMIUM INCLUSIVE
0-4 HANDICAP FOR THE GOLFER FABRICS
ADVANCED GOLF LIFESTYLE FRIENDLY
#1 ON TOUR TECHNOLOGIES INSPIRED
BRAND POSITIONING
OLD BRAND POSITION

COMPETITIVE CASUAL

NEW BRAND POSITION

COMPETITIVE CASUAL
BRAND POSITIONING
OLD BRAND POSITION

COMPETITIVE LIFESTYLE

NEW BRAND POSITION

COMPETITIVE LIFESTYLE
BUILDING BRAND DESIRE - FOCUS

WORLD CLASS MODERNIZING

PRODUCTS AND OUR DISTRIBUTION
DESIGN STRATEGY
INCREASE
OUR SHARE
LAUNCHING IN THE OF THE LEADING
RIGHT WAY, AT THE GOLFER‘S TECHNOLOGIES
RIGHT TIME WALLET

GETTING A DEEP ENTER

ENGAGEMENT WITH THE NEW CATEGORIES
GOLFER (SMART GOLF)
#1 ON TOUR
HOW WE
GROW 2018
2019/20

2017
NEW CATEGORIES
2016
NEW CATEGORIES
NEW CATEGORIES CHANNEL MIX
CHANNEL MIX
NEW CATEGORIES CHANNEL MIX
CHANNEL MIX

MARKET SHARE MARKET SHARE MARKET SHARE MARKET SHARE

MARKET