Strong start into 2006: Q1 better than expected

Highlights Q1:

• Strong start into 2006: Q1 better than expected
• Consolidated sales rise almost 30%
• Gross profit margin remains above 52%
• EBIT margin above 20% despite strong brand investments
• EPS at €5.83 compared to €5.68

Outlook 2006:

• Further improvement in orders, now up by 35% to €1.1 billion, EMEA up double-digit y-o-y
• Management increases sales and earnings guidance for 2006

Sales and Earnings Development

Global branded sales rise more than 15%

PUMA’s worldwide branded sales, which include consolidated and license sales, rose 15.3% to €737 million or currency adjusted by 11.8%. Footwear sales improved by 12.5%, Apparel by strong 19.1% and Accessories by almost 20%.

Consolidated sales rise almost 30%

In Q1, consolidated sales grew 29.5% (currency adjusted 25.4%) to €643 million. Hence, sales developed significantly better than expected with positive contributions from almost all product segments and regions. As already announced, due to the license take-backs and new Joint Ventures the consolidated business was extended to Japan (Apparel), China/Hong Kong, Taiwan China, Canada and Argentina effective January 1, 2006. Furthermore, the fully owned subsidiaries in Dubai and India started their operating activities as of this year. Like-for-like, organic growth contributed a strong 10,7% and new consolidations 18.8% to the overall performance. In total, Footwear was up 18% (currency adjusted 14%) to €399 million, Apparel by a healthy 63.1% (59.8%) to €202 million and Accessories by 21.6% (19.3%) to €42 million.

Licensed business up almost 10% on a like-for-like basis

On a like-for-like basis, the licensed business increased by 9.9% to €87 million. However, due to the take-backs of the aforementioned license markets, total licensed sales declined by 34.1% versus prior year. Based on the remaining licensed business, the company realized a royalty and commission income of €8.5 million in the first quarter versus €12.5 million in the prior year.

Gross profit remains above 52%

In Q1, gross profit margin stood better than expected at 52.4% compared to 53.4% last year, despite the planned and implemented shift in the regional and product mix. The Footwear margin decreased from 53.6% to 52% and Apparel from 53.4% to 52.9%. Accessories margin increased from 51.1% to 53.4%.

SG&A expenses at 32%

Due to strong brand investments and regional expansion, total SG&A rose 45.4% to €205 million. As a percentage of sales, the cost ratio increased as expected from 28.4% to 31.9%. The increase was mainly driven by strong Marketing/Retail expenses.

Marketing/Retail expenses rose as expected by 60.8% to above €100 million, representing a cost ratio of 15.6% compared to 12.6% last year. Product development and design expenses increased by almost 39% to €13 million and, as a percentage of sales, from 1.8% to 2%. Other selling, general and administrative expenses were up 32.4% to €92 million and remained around last year’s level at 14.3% of sales.

EBIT margin above 20%

  Despite the strong brand investments EBIT, margin reached 20.6% and remained on a very high level. In absolute amounts EBIT increased by 0.5% to €132 million versus the intitial expectation of an earnings decline. Due to a strong increase in the financial results, pre-tax profit grew by more than 1% to €134 million. The tax ratio remained at 29.5 % and was unchanged versus last year’s quarter.

Earnings per share above last year

In Q1, net earnings grew by 2.5%. In absolute amounts, net earnings accounted for €93 million versus €91 million last year. The net return amounts to 14.5% versus 18.3%. Earnings per share reached €5.83, a 2.7% increase to last year’s €5.68. Diluted earnings per share were calculated at €5.78 compared with €5.63.

Net Assets and Financial Position

Equity ratio above 60%

Despite a 42.9% increase in the balance sheet total to €1,552 million, the equity ratio further improved. The end of March equity ratio reached 61.4% compared with 58.2% last year.

Solid net cash position

Cash and cash equivalents grew from €323 million to €354 million and bank debts increased from €22 million to €68 million. Therefore, net cash position slightly decreased from €302 million to €286 million due to the strong investments, the take-backs and Joint Ventures inseveral markets.

Working capital

Inventories increased by 49.2% to €283 million and receivables were up by 34.4% to €476 million. Total working capital at the end of March increased 59.5% and amounted to €440 million compared with €276 million last year. The increase was mainly due to the regional expansion. Excluding the regional expansion inventories increased by 17% and receivables by 21%.

Capex/Cashflow

Capex increased from €21 million to €59 million, whereby €42 million are related to acquisitions. Tax payments rose from €21 million to €34 million. Due to these effects as well as the higher working capital due to the regional expansion, free cashflow was €-135 million compared to €-25 million last year.

Share Buyback

PUMA purchased another 50,000 of its own shares during the first three months. At quarter-end, a total of 940,000 shares were held as treasury stock, accounting for 5.6% of total share capital.

Regional Development

Change in regional mix

Due to the license take-backs and Joint Ventures, the regional mix changed significantly resulting in a more balanced regional business portfolio. Now, EMEA accounts for 52.8% (last year 72.2%), Americas for 28.3% (19%) and Asia/Pacific for 18.9% (8.8%).

Sales in the EMEA-region reached €339 million versus €359 million last year. The anticipated decline was due to the strong top-line performance in Q1 2005, hence leading to strong comp basis. Gross profit margin reached 55.2% compared to 55.6% last year. However, orders for EMEA now report a better than expected increase of nearly 12% to €600 million. All countries in this region contributed to the improvement.

Sales in the Americas continued to grow strongly. Currency adjusted, Q1 sales jumped 75.2% and in Euro terms by 93.1% to €182 million. The growth was due to a particularly strong organic business as well as the consolidation of Canada and Argentina. Gross profit margin increased from 46.1% to 47.5%. The order volume was up by a strong 87.8% to €310 million, or currency neutral by 71.6%.
In the US market, sales increased like-for-like by 62.4% to $157 million and end-of-quarter orders were up by strong 45.9%.

In the Asia/Pacific region sales increased by a strong 177.6% (currency-adjusted 179.5%) to €122 million. The organic growth contributed 17.7% to the overall performance and the remaining growth was contributed by the regional expansion. The gross profit margin increased by 100 basis points to 51.9%. As of March 31, 2006, orders on hand were up 114.6% (currency adjusted 115%) and totaled €187 million.

Outlook 2006

Future orders now up 35%

Consolidated orders further improved and increased by 35% (currency adjusted 31.3%) to €1,097 million. This represents the 41st consecutive quarter of order increase. In terms of product segments, Footwear increased by 29.8% (25.5%) to €720 million, Apparel 49.1% (46.4%) to €309 million and Accessories by 34.6% (32.1%) to €68 million.

Management increases sales and earnings guidance for FY2006

Due to a further improvement in the order position for the EMEA region and the overall strong performance in Q1, Management once again raises its sales forecast and now expects a growth of up to 35% for FY 2006, reaching almost €2.4 billion. The gross profit margin should range between 50% and 51%, given the anticipated shift in regional and product mix. The takeover of the license markets into the consolidated business will lead to a corresponding reduction in royalty and commission income. Selling, general and administrative expenses will be impacted in particular by disproportionately high marketing expenses relating to the World Cup and other PUMA campaigns, as well as by planned expansion of the Group’s retail operations and higher expenses for infrastructure. Overall operating expenses are assumed to rise to approximately 35% of sales. The operating margin is expected to decrease versus the prior year to approximately 15% of sales as a result of the brand-building investments in 2006 and conversion of the license businesses into consolidated business. Based on the higher top-line growth, Management also increases operating profit expectation to now around €360 million. The tax rate is expected to be below the original guidance and should be between 30% and 31%. As a result, net earnings are now expected to be only high single-digits below the previous year’s level. Thus, in absolute figures, net earnings are expected to significantly exceed the original expectations for 2006 communicated with the Phase IV strategy mid last year.

Jochen Zeitz, CEO: “We are pleased to have catalyzed our Phase IV growth plans with a Q1 above our expectations and the smooth integration of former licensee partners into our consolidated business. With the World Cup and other exciting initiatives still to come in 2006, we remain very positive in the outlook for the remainder of the year.“

The starting point and the basis for the development of a screw-in stud boot is PUMA’s “ATOM” football boot, launched on the market by PUMA’s founder, Rudolf Dassler, shortly after the company was founded in 1948/49. After a two-year development period during which Dassler worked on his screw-in stud technology, as early as 1951 there were experienced players from a variety of leagues trialling the revolutionary innovation. One year later, PUMA commenced serial production of the new screw-in stud boot, the “SUPER ATOM”. The first deliveries of the PUMA screw-in stud boot to both leading sportsmen and the trade took place at the start of the 1952/53 football season in Germany, which saw them being used for the first time on the football field. Of the 1. FC Kaiserslautern team which won the German championship on 21 June 1953, a total of seven players were using the PUMA screw-in stud boot. These included Horst Eckel and Werner Liebrich, whose outstanding sporting achievements saw them included in the German national team. In 1953, as part of an advertising campaign, PUMA made reference to the successful use of the “SUPER ATOM” among Germany’s footballing elite.

In assessing the importance of this development for football, Georg Hetzler, a master craftsman who was making boots at PUMA right from the earliest days, states: ” The sporting world was, of course, pleased to see the screw-in stud appear on the market, as the earlier soles were dangerous for the player. Once the studs had worn down, the heads of the nails were left standing exposed. Of course the risk of injury was extremely high, but this was no longer the case with the screw-in stud boot. And that’s why this product was received so well everywhere.”

Then in the next football season in 1953/54, another version of the PUMA boot was launched on the market as a further development. The new model appeared under the name “BRASIL” and also featured the screw-in stud system which had proved its worth in the meantime. In the game which decided that year’s German football championship, played on 23 May 1954, a total of eight out of the eleven Hannover 96 players were wearing the new PUMA screw-in stud boot.

At the end of this season, PUMA launched another advertising campaign, this time highlighting the success of the newly developed “BRASIL” football boot. The headline caption on the advertising poster read: “And so it was in Hamburg in the deciding match of the 1954 German football championship – PUMA playing a part again!” There were also photos of the final match shown, featuring Hannover 96 players in their PUMA screw-in stud boots.

One member of the team, Rolf Gehrke, remembers using the PUMA screw-in stud boot: “We were really delighted to get the boot from PUMA when we did. The advantage of the screw-in stud boot was that it could be fitted with different studs for different weather conditions. Before the match every player could decide for himself whether he wanted to play with long, short or medium-length studs. This was PUMA creating a genuine revolution!”

PUMA has successfully come up with the historical evidence that as early as one year before the 1954 World Cup in Switzerland the company had become the first to introduce the screw-in stud boot into to the market under conditions of serial production. In so doing, PUMA has refuted the accepted version of the initial use of the screw-in stud boot, which had it that the suppliers of equipment to the German national team came up with the screw-in stud boot on their own for the World Cup in Switzerland.

Governing mayor of Berlin, Klaus Wowereit commented: “I am happy to welcome Africa to Berlin today in this special way. My cordial welcome especially goes to the players of the five African World Cup teams, who are supporting the UNITED FOR AFRICA campaign. By supporting UNITED FOR AFRICA, the City of Berlin would like to express its solidarity with the people on the African continent. With your support, we are demonstrating the openness and solidarity of our city. Demonstrate your personal rejection of right wing extremist tendencies in Germany by showing your hospitality.”

Numerous celebrity supporters were present at the grand opening at Hackescher Markt. The stars of the African World Cup football team were demonstrating their football skills for charity, fashion fans made use of the opportunity to print their very own limited edition charity T-shirts and sports fans went one-on-one against leading film, radio and TV stars in a penalty shoot out. In addition to Daniel Brühl, Jasmin Tabatabai and Alexandra Maria Lara, photographer Hubertus von Hohenlohe and the American Jazz musician Keziah Jones supported the campaign with their unique talents and personal commitment. Also present at the event were Katrin Kortmann, Parliamentary State Secretary at the Federal Ministry for Economic Cooperation and Development, and representatives of several African embassies in Berlin.

“We are pleased and honoured to support the campaign UNITED FOR AFRICA in its initiatives and efforts”, said Jochen Zeitz, CEO of PUMA AG. “The Charity Tram with the PUMA Charity Collection UNITED FOR AFRICA is an innovative, unusual way to generate awareness and promote donations for Africa during the World Cup.”

The information stands at Hackescher Markt informed all visitors about the work carried out by UNITED FOR AFRICA. The aim of this event during the World Cup 2006 is to direct international awareness to Africa and African issues, to encourage and inspire people to face up to these topics and gather donations for the 5000 and more aid projects currently active on the African continent. In addition, the Goethe Institute Film Festival “Africa In Motion” was presented, which will amaze and excite football fans, Africa and cinema enthusiasts alike.

Susanne Anger, spokeswoman of UNITED FOR AFRICA said: “In addition to the work of the aid and humanitarian organisations, the UNITED FOR AFRICA campaign clearly aims to emphasize the opportunities and true potential which Africa has. With more than 5000 projects, the 30 aid organisations of UNITED FOR AFRICA actively help people in need every day. We are happy to have found such a strong and authentic partner as PUMA for our campaign.”

The UNITED FOR AFRICA Charity Tram runs on a central, specially planned route through the heart of Berlin and is advertising the campaign. The tram will attract attention by hosting numerous events featuring prominent artists and sports personalities and offer numerous opportunities to donate money to the charity. PUMA’s Charity Collection UNITED FOR AFRICA, also sold in the PUMA Concept Stores in Germany, will be available here for purchase, as will the limited edition World Cup outfits. The moment both wagons of the special event tram start moving, the motto until the 9th July 2006 is: GET ON IT!

Film material and photos can be downloaded at http://about.puma.com/newsroom. You will be redirected to the website www.thenewsmarket.com, where you will then be able to access the material free of charge. If you have any further questions please contact us by e-mail at puma@thenewsmarket.com.

“The long term partnership with the Czech National Team has been instrumental in the continued positive development of the PUMA brand in Czech Republic”, said Jochen Zeitz, PUMA CEO and Chairman. Confirming the team’s positive performances on the pitch, he added: “Both parties have a strong heritage in the world of football but, more importantly, continue to perform successfully today. We are delighted to extend the co-operation beyond the two upcoming major championships.”

The Czech National Team endorses PUMA’s statement product concept – the v1.06. In line with its ‘gets you there faster’ design objective, the v1.06 Czech Republic shirt uses a progressive minimalist design resulting in a modern and unique silhouette engineered to support players in their stride. An extreme lightweight solution the new playing shirt weighs as little as 100g. The v1.06 shirt utilizes the Kold Fusion technology, providing a stitch-less alternative to traditional cut and sewn shirts by welding together the fabric to form an incredible strong, light and durable molecular bond.

In an effort to honour and stress the individuality of each contracted national team, PUMA has designed a new graphic treatment iconic to each country. The Czech Republic shirt features a tonal print revealing the country’s national coat of arms. The new Czech Republic v1.06 licensed apparel training line and equipment offering further supports the playing kit.

As one of 12 PUMA teams represented at the 2006 FIFA World Cup, the Czech Republic are looking to continue on the same momentum that saw them play some of the best football at the 2004 UEFA European ChampionshipÔ. Under the guidance of the team’s experienced coach Karel Brueckner, Czech Republic face Group E contenders Italy, USA and Ghana at Germany 2006™

Currently ranked 2nd in the FIFA rankings and coming in on the back of a fantastic display at the recent 2004 UEFA European Championships, it is clear that the Czech Republic is travelling to Germany as one of the odds on favourites to do well. The team fields a blend of hungry youth and clever experience all eager to make an impact on football’s biggest stage. Remarkably, the Czech Republic joins Angola, Togo, Ghana, Ivory Coast, Trinidad & Tobago and Ukraine on the list of World Cup debutants. A bit far fetched it might seem taking into account that Czechoslovakia has a proud record of eight World Cup appearances between 1934 and 1990, including runners-up spots in 1934 and 1962.

The reveal phase presents evidence that points to the secret source of this newfound football fervor. In a dramatic courtroom scene someone is being accused of having given fans and PUMA sponsored athletes an advantage.
In “The Trial” it comes to light that football great, Pelé, is in fact the man in question. Now, he must answer to a fictional governing body of football, the Global International Football Organization (GIFO). The contents of the packages given to the players are revealed and Pelé must respond to the accusations. In the closing moments of the TV spot, Pelé finally speaks and delivers a special message to the football world.
“The Trial” premiers worldwide on June 8 with 30, 60 second TV spots and is supported by print and outdoor formats, online and ambient media.

The “WILLKOMMEN ZUM FUSSBALL” TV ad campaign is directed by Tarsem – award-winning ad filmmaker and director of Hollywood blockbuster “The Cell” and the forthcoming film “Westworld”.

“I think everybody knows that PUMA is synonymous with football…I used to be sponsored by PUMA,” said Pelé. “Now we are back together and I am very happy to be a part of the family again.”

Pelé is synonymous with joy and entertainment. As such, the PUMA sponsored section within PeléStation pays homage to his prime attributes. Showcasing excerpts from PUMA’s dedicated World Cup™ advertising campaign; exhibition visitors are introduced to the evidence that confirm Pelé’s greatness as a player and as a person. This iconic football legend that brings passion and excitement to the game of football all over the world, is personified in just three words – “WILLKOMMEN ZUM FUSSBALL”. German for “Welcome to Football” these three words are more than just a campaign headline, they are a special message to the football world delivered by Pelé in the closing moments of a dramatic courtroom scene which perfectly embody Pelé’s attitude to the game that he single-handedly took to a different level.

“Love, passion and football are the three words that come to my mind when thinking about Pelé,” said Jochen Zeitz, PUMA Chairman and CEO. “We are inspired by Pelé’s presence and we are excited to be working with this remarkable football legend once again.”

Earlier this year the sportslifestyle brand and the football legend collaborated to reveal a Pelé signature collection for the Spring 2006 season, marking the football icons return to the fold and the start of a new relationship. PUMA celebrates this rejuvenated co-operation with Pelé by supporting PeléStation and ensuring that future generations honor the man who led and continues to lead by example on and off the pitch.

The PeléStation exhibition is at Potsdamer Platz and can be reached by PUMA’s UNITED FOR AFRICA Charity Tram. The Tram is part of PUMA’s “WELCOME TO FOOTBALL” circuit connects the PUMA Store (Hackescher Markt), PUMA HQ Café Moskau (near Alexanderplatz) and stops at Oranienburger Straße with a direct connection to the the PeléStation Exhibition.

PUMA will in the coming four years strive to strengthen its strong position in Africa. PUMA estimates the potential turnover in Africa at four times higher than today’s turnover and it will considerably tap into this potential over the next five to six years. With an impressive portfolio of more than ten PUMA-sponsored African national teams, PUMA is already indisputably the most visible football brand in Africa.

On the occasion of his visit to Africa, PUMA CEO Jochen Zeitz was delighted to start the PUMA countdown to 2010 today at a press conference in Johannesburg. “Only 1,295 days left until the 2010 World Cup. PUMA is very proud to be the official kit supplier of over 10 African teams and is already certain to make a strong mark at the first World Cup ever set on African soil.”

“The World Cup 2006 might not be over yet – but the work on our part is accomplished. We have not only reached, but surpassed our aim for this year’s World Cup. Now, it is time for us to move on to the next project: the World Cup in Africa”, says Zeitz.

Economic interests alone do not drive PUMA’s long-term commitment on the African continent. PUMA actively supports the development of African football with aid projects such as football camps. To deepen ties, PUMA announced two months ago its cooperation with the charity campaign United for Africa, the most significant aid organization for Africa in Germany, with whom PUMA will jointly gather donations and awareness.

“PUMA is proud to have Geoff as a part of the PUMA family. He continually proves his superior athletic abilities and his finesse on the course. This win at the US Open proves his talent and his skill,” said Jochen Zeitz Chairman and CEO of PUMA AG. “Geoff’s visibility and performance in the industry has helped propel our launch into the golf category and we are happy to be a part of this momentous achievement in his career.”

At the U.S. Open, Ogilvy turned heads with his all around game highlighted by a chip-in for a par at the 17th and his great up and down on the 18th. His skill, technique and accuracy led Ogilvy to finish 5-over 275. Ogilvy has quickly become a rising star in the golf world after his impressive win at the Accenture World Match Play Championships this past February. Geoff has shown a solid performance in the last four majors, finishing 5th in the British Open, 6th in the PGA Championships and 16th at The Masters. 2006 has been a break out year for Ogilvy with two wins and four top ten finishes. This win at the U.S Open advances Ogilvy to 2nd on the 2006 PGA Tour Money Leaders and 8th in the official 2006 PGA Tour Official World Golf Ranking.

“I am still in a state of excitement over my first victory in the Majors,” said PUMA athlete Geoff Ogilvy, “I feel very fortunate to have partners like PUMA by my side, supporting me at every competition. The PUMA brand is about making the sport of golf inclusive and fun and no other tournament speaks to this more than the U.S. Open.”

Ogilvy, who has been sponsored by PUMA since January, was wearing pieces from PUMA’s spring and fall Golf collections throughout the week. Later this month, the new fall collection will hit stores. During the U.S. Open, Geoff was wearing PG GTX Spikes in black and white. For apparel, he chose bright and colorful pieces from the line including the Golf Engineered Polo in fresh salmon, Golf Polo featuring PUMA’s 18-hole graphic, Golf Pants and the PUMA Golf Belt, which adorns the PUMA Cat on the buckle. Despite the heat throughout the weekend, Geoff stayed calm and cool with PUMA’s advanced technology such as the Ultimate Sports Performance Technology (USP) and moisture wicking finish featured in his attire.

PUMA Golf offers performance footwear, apparel and accessories and select lifestyle pieces for men and women that will enhance your game as well as your style. The PUMA Golf Collection worn by Geoff Ogilvy is currently available at lifestyle boutiques, select golf specialty, green grass retailers and PUMA Concept Stores worldwide.

For more information visit www.puma.com

About Bob

Bob Kennedy is arguably one of the most well-known and well-respected U.S. distance runners of the modern era. While in college at Indiana University, Bob held several NCAA cross country and long distance titles. His passion for running began in high school where he claimed the title of champion in the 1987 National High School Cross Country race and 1988 National High School Mile. He is an American record holder in multiple events, two-time Olympian, many time NCAA champion, and the only American to break the 13-minute barrier in the 5000 meters. At the age of 35, Kennedy has now retired from his professional running career to take on new horizons in the industry not only with PUMA but also as the co-owner of The Running Company, a running specialty store with three locations in Indianapolis. Bob is known as an aggressive and smart competitor as well as a role model for aspiring athletes. With Olympic experience, American records, a successful business, and 16-month old twins, there is not a lot left for Bob to conquer. However, he does not see it that way.

Bob currently resides in Indianapolis, IN where he lives with his wife Melina and two children Marcus and Sophia.

Accomplishments

• Officially retired from competition January 2006
• American Record Holder at 3000 meters – 7:30.89
• American Record Holder at 5000 meters – 12:58.21
• 1996 Olympian at 5000 meters – 6th place
• 1992 Olympian at 5000 meters – 12th place
• Won 20 Individual Big Ten Championships at Indiana University
• 1992 NCAA Cross Country Champion at Indiana University
• 1991 NCAA One Mile run Champion at Indiana University
• 1990 NCAA 1500 meter run Champion at Indiana University
• 1988 NCAA Cross Country Champion at Indiana University
• 1988 National High School One Mile Run Champion
• 1987 National High School Cross Country Champion
  
  Photo Credits: Conné/ PUMA

PUMA has gained brand visibility throughout 56% of the tournament, making PUMA the most prominent brand in terms of visibility – that being, in 36 out of the 64 games at least one PUMA team was present, equating to 54 hours of on-pitch action.

PUMA was also among the top three brands in terms of player presence on the field, with 18% of all players wearing the most innovative speed proposition product line v1.06, which has received an outstanding response from players and teams alike. Exceptional sell through reports in all markets led to the football performance turnover rising by approximately 40% compared to 2005.

“Not only have we reached, but by far surpassed our goals for our brand at the World Cup. We have significantly strengthened our strong position as one of the worlds leading football brands and made unparalleled impact with our innovative performance products”, comments Jochen Zeitz.

Off the field, PUMA’s activities during the World Cup have been centred in Berlin at their specially created CAFÉ MOSKAU headquarters. The venue has offered public viewing for every match and a showcase of live entertainment ranging from underground music acts to international stars such as AKON and Basement Jaxx who are set to perform on 9 July. Since the start of the tournament the CAFÉ MOSKAU has been noted as the alternative place in Berlin to watch football and described by The “Frankfurter Allgemeine Zeitung” as being the “football cathedral chosen by the in-crowd of Berlin” (FAZ, June 22, 2006).

PUMA’s leading position in African Football has been underlined with the charity campaign with UNITED FOR AFRICA, an organisation that supports over 30 charities and 5000 projects. With a transparent amount of funds directly benefiting the African people, PUMA launched an entire charity collection of clothing and lifestyle products and integrated the charity campaign in all German Concept Stores. The creation of a unique UNITED FOR AFRICA charity tram surprised locals and visitors in Berlin with it’s entertainment and retail offering and cooperation with the GOETHE INSTITUTE which hosted an onboard African film festival.

PUMA’s partnership with German national airline DBA saw a total of 27 aeroplanes prominently display the brand message “WILLKOMMEN ZUM FUSSBALL” and has been clearly visible in the airports of each of the twelve host cities. The Spree river in Berlin hosted the PUMA boat, a floating football pitch and beach bar which, with the hot summer weather has been a huge success among all fans who wanted to view the games outdoors.

WILLKOMMEN ZUM FUSSBALL is the biggest global marketing campaign in the company history with Pelé as the figurehead character of the advertising campaign. Overall, PUMA is highly satisfied with the results achieved at the World Cup.

“We have once again proven that PUMA is deeply embedded in the world of football. We intend to continue this course, starting on Sunday at the final with Italy, and carrying on through the European Cup in 2008 in Austria and Switzerland, both guest hosts being sponsored by PUMA, pushing through until the World Cup 2010 in South Africa where we will once again be the most dominant brand in African Football. With the Italians as one of the top favorite teams we will enter the world cup in South Africa with either a world champion or a runner up”, says Jochen Zeitz.

PUMA previously announced that preparations are already underway for the World Cup 2010 in South Africa. With an impressive portfolio of more than ten PUMA-sponsored African national teams, PUMA is already indisputably the most visible football brand in Africa.

„Italy´s victory is the glorious final of an incredibly successful World Cup for us“, says Jochen Zeitz, PUMA CEO. „We assume, that the football performance turnover rose by approximately 40% compared to 2005”, he comments. The brand visbility at this Word Cup not only strengthened, but cleary expandend PUMAs position as one of the top 3 football brands in the world.
PUMA will now produce new kits with four World Cup Stars, which will be available in PUMA Concept Stores starting next Monday, July 17. Furthermore, PUMA will start an international advertisement campaign, congratulating the Italian team to their World Cup victory. The ads will be printed in high profile newspapers such as the “Financial Times”, “Gazzetta dello Sport”, “Frankfurter Allgemeine Zeitung”, “De Telegraf”, “L´Equpe”, “Neue Zürcher Zeitung” or “The Times”.
„This is a great starting position in terms of the European Cup in 2008 in Austria and Switzerland, both guest hosts being sponsored by PUMA, pushing through until the World Cup 2010 in South Africa where we will once again be the most dominant brand in African Football. With the Italians as one of the top favourite teams we will enter the World Cup in South Africa with a World Champion”, says Jochen Zeitz.

The EURO 2006 will have 1400 athletes from 49 countries participating in the Championships; around 2000 media representatives are accredited to cover the event. 65 000 000 TV spectators are expected to follow the competitions each day, 32 000 will assist at the Championships in the Ullevi stadium. As one of the main sponsors, PUMA will outfit a total of 3000 volunteers during the EURO 2006 week.

“PUMA has been strongly connected with athletics for many years, `Running´ being one of PUMAs core business segments. With our sponsorship, we will further enhance the brand’s visibility in this category and strengthen PUMAs position as one of the leading suppliers in athletics”, Ulf Kinneson, General Manager of PUMA Nordic AB.

Being one of the most attractive and biggest sporting events in Scandinavia since the 1995 Athletic World Championships also held in the Gothenburg stadium Ullevi, the EURO 2006 will achieve high brand visibility for PUMA. The sponsorship is part of an extensive marketing campaign which includes advertising and communication measures, as well as a wide array of entertainment activities. Furthermore, PUMA has launched a special EURO 2006 collection in the Swedish national colours yellow and blue.

PUMA and the Swedish Athletics Association intend to further strengthen their cooperation with the shared claim “Go Sweden” at this years Championship. “Our goal with Gothenburg is to make it our `own´ Gothenburg, entertaining guests and fans from around the world day and night”, adds Ulf Kinneson. PUMA will therefore focus most of the marketing activities on Gothenburg, the people visiting the city and the Ullevi arena during the EURO 2006 week.