Industry 6 Footwear Industry Report Year 11

Year 11 Scoreboard

Rank Company Points Trend*

1 Froot 98 A
2 GUEPARDO 76 B
3 C-LION 72 C
4 ETERNALS 65 D
5 A-FLEET FEET 64 E
6 BEYOND 60 F
7 D-COMFORT 51 G
8 HIVAR 40 H

Game-To-Date Scoreboard

Rank Company Points Trend*

1 Froot 98 A
2 GUEPARDO 76 B
3 C-LION 72 C
4 ETERNALS 65 D
5 A-FLEET FEET 64 E
6 BEYOND 60 F
7 D-COMFORT 51 G
8 HIVAR 40 H

* Trend data not available in Year 11.

Industry 6 Footwear Industry Report — Year 11 Page 2

Year 11 Scoring Breakdown

Sales Revenues After-Tax Earnings Return On Equity

(15 point maximum) (20 point maximum) (20 point maximum)
Company Name Revenues Points Total Profit EPS * Points ROE Points

A-FLEET FEET $ 98,054 12 $ 8,657 $ 1.73 10 0 19.65% 12

BEYOND 96,265 12 7,473 1.49 9 0 17.66 11
C-LION 107,457 13 11,132 2.23 13 0 23.93 15
D-COMFORT 90,278 11 6,973 1.39 8 0 16.46 10
ETERNALS 109,364 13 11,876 1.70 10 0 17.49 11
Froot 122,463 15 16,785 3.36 20 0 32.17 20
GUEPARDO 95,695 12 12,237 2.44 15 0 25.52 16
HIVAR 92,242 11 8,102 0.58 3 0 8.93 6
122463 3.36 32.169
Industry Average $ 101,477 12 $ 10,404 $ 1.86 11 0 20.23% 13

Bond Rating Company Value Strategy Rating

(20 point maximum) (20 point maximum) (5 point maximum)
Company Name Bond Rating Points All Shares Stock Price* Points Rating Points

A-FLEET FEET A 16 $ 98,550 $ 19¾ 12 30 2

BEYOND A 16 89,800 18 11 16 1
C-LION A 16 122,050 24½ 15 17 1
D-COMFORT BBB 14 62,200 12½ 8 10 1
ETERNALS AA 18 148,050 21¼ 13 18 1
Froot AA 18 169,600 34 21 70 5
GUEPARDO A 16 132,028 26¼ 16 15 1
HIVAR A 16 83,580 6 4 6 0
70
Industry Average A 16 $ 113,232 $ 20¼ 12 23 2

* Indicates the variable being used in the grading algorithm.

Industry 6 Footwear Industry Report — Year 11 Page 3

Game-To-Date Scoring Breakdown

Sales Revenues After-Tax Earnings Return On Equity

(15 point maximum) (20 point maximum) (20 point maximum)
Company Name Revenues Points Total Profit EPS * Points ROE Points

A-FLEET FEET $ 98,054 12 $ 8,657 $ 1.73 10 19.65% 12

BEYOND 96,265 12 7,473 1.49 9 17.66 11
C-LION 107,457 13 11,132 2.23 13 23.93 15
D-COMFORT 90,278 11 6,973 1.39 8 16.46 10
ETERNALS 109,364 13 11,876 1.70 10 17.49 11
Froot 122,463 15 16,785 3.36 20 32.17 20
GUEPARDO 95,695 12 12,237 2.44 15 25.52 16
HIVAR 92,242 11 8,102 0.58 3 8.93 6
122463 3.36 32.169
Industry Average $ 101,477 12 $ 10,404 $ 1.86 11 20.23% 13

Bond Rating Company Value Strategy Rating

(20 point maximum) (20 point maximum) (5 point maximum)
Company Name Bond Rating Points All Shares Stock Price* Points Rating Points

A-FLEET FEET A 16 $ 98,550 19¾ 12 30 2

BEYOND A 16 89,800 18 11 16 1
C-LION A 16 122,050 24½ 15 17 1
D-COMFORT BBB 14 62,200 12½ 8 10 1
ETERNALS AA 18 148,050 21¼ 13 18 1
Froot AA 18 169,600 34 21 70 5
GUEPARDO A 16 132,028 26¼ 16 15 1
HIVAR A 16 83,580 6 4 6 0
70
Industry Average A 16 $ 113,232 20¼ 12 23 2

* Indicates the variable being used in the grading algorithm.

Industry 6 Footwear Industry Report — Year 11 Page 4

Industry Overview

Ohio Texas Europe Asia Overall

Global ———————
Pairs Produced 8,030 18,000 0 0 26,030
Production Pairs Rejected 408 908 0 0 1,316
Capacity Utilization 100.4% 112.5% 0.0% 0.0% 108.5%
Long-Wear Materials 19.3% 25.4% 0.0% 0.0% 23.5%

P–Label N.A. Europe Asia Overall

Global Sales ——— Pairs Available 5,470 13,191 5,478 2,712 26,851
Pairs Sold 4,800 11,683 4,873 2,712 24,068
Pairs Liquidated 0 238 52 0 290
Ending Inventory 670 1,270 553 0 2,493

Demand Forecast (000s of pairs) Year 11 Materials Prices

Private- Branded Markets World Normal- Long-

Label N.A. Europe Asia Total Wear Wear

Year 12 5,600 14,558 6,240 3,598 29,996 Base Price 6.00 € 12.00 €
Year 13 6,800 15,723 6,989 4,282 33,793 Adjustment for:
Year 14 8,300 16,823 7,548 4,838 37,509 Cap. Utilization 0.51 1.01
Year 15 10,200 17,664 7,925 5,225 41,015 Materials Mix 0.04 -0.09
Year 16 12,650 17,134 7,767 4,964 42,515 –––––— –––––—
Market Price 6.55 € 12.93 €

Plant Capacity

Plant Capacity On-Line in Year 11 Planned Changes for Year 12 Year 12

Company Ohio Texas Europe Asia Texas Europe Asia Capacity

A 1,000 2,000 0 0 1,000 0 0 4,000

B 1,000 2,000 0 0 1,000 0 0 4,000
C 1,000 2,000 0 0 0 0 3,000 6,000
D 1,000 2,000 0 0 0 0 2,000 5,000
E 1,000 2,000 0 0 0 0 2,000 5,000
F 1,000 2,000 0 0 0 0 2,000 5,000
G 1,000 2,000 0 0 0 1,000 2,000 6,000
H 1,000 2,000 0 0 0 0 2,000 5,000

Total 8,000 16,000 0 0 2,000 1,000 13,000 40,000

Industry 6 Footwear Industry Report — Year 11 Page 5

The Private-Label Market

Model Quality Bid Warehouse Operations (000s of pairs) Market

Co. Availability Rating Price Available Offered Sold Inventory Share %

A 50 91 25.22 € 950 950 950 0 19.8

B 50 110 26.50 600 600 600 0 12.5
C 50 88 26.00 650 650 650 0 13.5
D 100 93 28.30 600 600 600 0 12.5
E 50 97 28.34 500 500 500 0 10.4
F 50 91 25.40 950 950 950 0 19.8
G 150 88 28.99 620 620 0 620 0.0
H 100 94 28.34 618 618 550 50 11.5

Overall 75 94 27.14 € 5,488 5,488 4,800 670 12.5

The Branded Markets

Model Availability Quality Ratings

Co. N.A. Europe Asia N.A. Europe Asia

A 100 100 100 104 104 90

B 144 146 69 100 100 104
C 126 146 143 99 102 101
D 100 100 100 91 93 93
E 120 147 143 98 98 98
F 100 100 69 107 108 94
G 145 146 142 105 106 88
H 100 100 100 95 94 93

Average 117 123 109 99 101 96

Industry 6 Footwear Industry Report — Year 11 Page 6

The Branded Markets

(continued)

Service Ratings Number of Retail Outlets

Co. N.A. Europe Asia N.A. Europe Asia

A 112 115 67 5,500 1,500 100

B 95 100 100 5,000 1,000 1,000
C 115 115 140 5,500 1,500 550
D 100 100 100 5,000 1,000 500
E 115 130 130 5,500 1,000 1,000
F 156 168 156 5,500 1,100 550
G 104 108 133 6,000 1,300 600
H 100 100 100 5,000 1,000 500

Average 112 117 123 5,375 1,175 671

Year 11 Advertising ($000s) Image Rating

Co. N.A. Europe Asia N.A. Europe Asia

A 2,000 1,000 0 50 46 30
B 2,200 1,200 850 50 46 42
C 2,500 1,500 650 50 46 38
D 2,000 1,000 500 50 46 38
E 3,000 1,500 800 50 46 42
F 4,000 2,000 650 54 50 38
G 2,500 1,250 625 50 46 38
H 2,000 1,250 750 50 46 42

Average 2,525 1,338 689 50 46 40

Industry 6 Footwear Industry Report — Year 11 Page 7

The Branded Markets

(continued)

Customer Rebates Selling Prices

Co. N.A. Europe Asia N.A. Europe Asia

A 2€ 1€ 0€ 32.00 € 34.00 € 35.00 €

B 3 3 2 34.00 35.00 35.00
C 3 2 1 35.00 36.00 37.00
D 3 2 1 33.90 34.90 35.90
E 3 3 3 35.00 36.00 37.00
F 2 1 1 35.00 36.00 37.00
G 5 4 3 37.99 38.99 39.99
H 4 3 2 34.00 35.00 36.00

Average 3.1 € 2.4 € 1.9 € 34.61 €* 35.74 €* 36.84 €*

Sales Gained (Lost)

Pairs Sold Because of Stockouts
Co. N.A. Europe Asia N.A. Europe Asia

A 1,500 560 60 32 15 (144)

B 1,465 638 235 32 (2) (98)
C 1,442 650 451 31 18 23
D 1,182 482 457 25 13 174
E 1,492 723 458 32 20 (13)
F 1,777 677 318 (106) (64) (21)
G 1,497 606 380 (75) (14) (9)
H 1,328 537 353 29 15 36

Total 11,683 4,873 2,712 0 1 (52)

* Region averages do not include the prices of companies selling fewer than 100,000 pairs (since such companies
are not significant competitors in the region).
Industry 6 Footwear Industry Report — Year 11 Page 8

Celebrity Endorsements

Consumer Contract Status Standard Year Next

Appeal Contract Holder Terms Contract Available
Celebrity Index (year signed) ($000/yr.) Period For Bid

José Montana 50 [unsigned] $0 2 years Year 12

Oprah Letterman 100 D-COMFORT (Y11) $1200 3 years Year 14
Angelica Freestyle 70 ETERNALS (Y11) $5000 5 years Year 16
Tiger Greene 90 [unsigned] $0 2 years Year 12
Freon Deon 50 [unsigned] $0 3 years Year 12
Karioki Footsu 100 [unsigned] $0 4 years Year 12
Sir Charles Dunkem 40 [unsigned] $0 1 years Year 13
Sally Strideright 55 [unsigned] $0 3 years Year 13
Monica Sellars 75 [unsigned] $0 4 years Year 13
Jacques LaFeet 30 [unsigned] $0 2 years Year 13
Pélé Payless 60 [unsigned] $0 3 years Year 14
Mikee Nikee 80 [unsigned] $0 4 years Year 14

Year 11 Strategy Rating Comparisons

Measure of Strategy Rating Points by Company

Strategic Performance A B C D E F G H
Product Line ––————
N.A. · 5 · · · · 5 ·
(broad/focused) Europe 4 4 4 4 4 4 4 4
Asia · 7 6 · 6 7 6 ·
High Quality –––––––—N.A. · · · · · · · ·
Europe · · · · · · · ·
Asia · · · · · · · ·
Good Service –––––––—
N.A. · · · · · 9 · ·
Europe · · · · · 10 · ·
Asia · · 3 · · 7 · ·
Brand Image ––––––——
N.A. · · · · · · · ·
Europe · · · · · · · ·
Asia · · · · · · · ·
Overall Low Cost –––—P-Label · · · 2 · 3 · 2
N.A. · · · · · · · ·
Europe · · · · · · · ·
Asia 9 · · · · · · ·
Market Share –––———P-Label 13 · · · · 13 · ·
Leadership N.A. · · · · · 4 · ·
Europe · · · · 4 · · ·
Asia · · 4 4 4 · · ·
Superior Value –––––—N.A. 4 · · · · 6 · ·
Europe · · · · · 7 · ·
Asia · · · · · · · ·
Market Coverage –––—Global · · · · · · · ·
Focused · · · · · · · ·

Total Strategy Rating Points 30 16 17 10 18 70 15 6

Industry 6 Footwear Industry Report — Year 11 Page 9

Compensation and Productivity

Annual Wages Total Compensation

($000s per worker) ($000s per worker)
Co. Ohio Texas Europe Asia Ohio Texas Europe Asia

A 16.1 € 12.7 € 0.0 € 0.0 € 18.2 € 18.2 € 0.0 € 0.0 €

B 14.6 12.5 0.0 0.0 16.8 16.8 0.0 0.0
C 16.8 12.6 0.0 0.0 18.8 17.8 0.0 0.0
D 16.5 12.4 0.0 0.0 18.7 17.8 0.0 0.0
E 14.3 12.3 0.0 0.0 18.4 17.6 0.0 0.0
F 17.0 12.8 0.0 0.0 20.6 18.7 0.0 0.0
G 16.8 13.0 0.0 0.0 20.0 17.6 0.0 0.0
H 17.0 13.0 0.0 0.0 20.9 17.7 0.0 0.0

Average 16.1 € 12.7 € 0.0 € 0.0 € 19.0 € 17.8 € 0.0 € 0.0 €

Incentive Pay Worker Productivity

(as % of total compensation) (pairs per worker per year)
Co. Ohio Texas Europe Asia Ohio Texas Europe Asia

A 11.7 30.0 0.0 0.0 2,445 3,527 0 0

B 13.0 25.4 0.0 0.0 2,113 3,102 0 0
C 10.5 29.1 0.0 0.0 2,568 3,141 0 0
D 11.8 30.3 0.0 0.0 2,526 3,110 0 0
E 22.1 30.0 0.0 0.0 2,225 3,108 0 0
F 17.4 31.5 0.0 0.0 3,104 3,593 0 0
G 15.9 26.2 0.0 0.0 2,651 3,206 0 0
H 18.7 26.6 0.0 0.0 2,682 3,182 0 0

Average 15.1 28.7 0.0 0.0 2,539 3,246 0 0

Industry 6 Footwear Industry Report — Year 11 Page 10

Comparative Financials

Income Statement Data ($000s) Miscellaneous Data

Manufac- Ware- Market- Admini- Oper- Extra- Common Divi- Net
turing house ing strative ating Interest ordinary Stock dends Profit
Co. Cost Expense Expense Expense Profit Expense Gain(Loss) (shares) ($/share) ($/pair)

A 60,757 9,138 5,291 2,525 14,837 2,470 0 5,000 0.40 2.82

B 63,404 10,314 6,876 2,525 13,146 2,470 0 5,000 0.50 2.54
C 66,572 12,727 7,260 2,525 18,373 2,470 0 5,000 0.40 3.49
D 55,394 13,004 6,924 2,525 12,431 2,470 0 5,000 0.40 2.56
E 65,164 13,266 8,974 2,525 19,436 2,470 0 7,000 0.40 3.74
F 71,754 12,598 9,138 2,525 26,448 2,470 0 5,000 0.40 4.51
G 53,153 10,789 9,278 2,525 19,951 2,470 0 5,022 0.40 4.93
H 57,029 11,114 7,529 2,525 14,045 2,470 0 14,000 0.20 2.93

Avg. 61,653 11,619 7,659 2,525 17,333 2,470 0 6,378 0.39 3.44

Balance Sheet Data ($000s) Financial Ratios

Ending Short- Accum. Stock- Days Times Debt to
Cash Total Term Bonded Total Retained holders' of Interest Assets
Co. Balance Assets Debt Debt Liabilities Earnings Equity Inventory Earned Ratio

A 5,079 72,344 0 22,800 28,294 23,050 44,050 52 6.01 0 0.32

B 4,742 68,849 0 20,800 26,524 21,325 42,325 0 5.32 0 0.30
C 7,266 75,839 0 22,800 29,316 25,523 46,523 9 7.44 0 0.30
D 0 81,192 9,048 22,800 38,827 21,365 42,365 120 5.03 0 0.39
E 23,415 97,425 0 22,800 29,529 25,467 67,896 37 7.87 0 0.23
F 9,613 80,249 0 22,800 28,072 31,177 52,177 0 10.71 0 0.28
G 0 79,289 2,226 22,800 31,341 26,619 47,948 91 8.08 0 0.32
H 66,629 138,666 0 42,000 47,975 21,477 90,691 56 5.69 0 0.30

Avg. 14,593 86,732 1,409 24,950 32,485 24,500 54,247 20 7.02 0 0.30
Industry 6 Footwear Industry Report — Year 11 Page 11

Key Financial and Cost Values

Exchange ———–————
Japanese Yen / $ 113.63 Import Tariffs —————N.A. to Europe 4.00
Rates Eurodollars / $ 0.8759 ($ per pair) N.A. to Asia 8.00
Europe to N.A. 0.00
Interest Rates —————AAA Bonds 7.50% Europe to Asia 8.00
S-T Prime 7.50% Asia to N.A. 0.00
Asia to Europe 4.00
Base Materials Prices —–——
Normal-Wear 6.00
(base $ per pair) Long-Wear 12.00 Cost of Faster Delivery ————3-weeks 0.25
($ per pair) 2-weeks 0.75
Private-Label Specs ———
Minimum Models 50 1-week 1.50
Minimum Quality 50
Base Plant Supervision Cost ($/worker) 5,000
Shipping Costs —————
Within a Region 0.25
($ per pair) Between Regions 0.50 Retailer Support Cost ($/retail outlet) 100

Private–Label Conversion Cost ($/pair) 0.25 Cost of Bid for Celebrities ($000s) 100

Headline News

Bienvenidos