In his previous role, Franz Koch has been in charge of Global Strategy for PUMA and therefore the long-term strategic group development. He was instrumental in developing PUMA’s growth strategy “Back on the Attack 2011-15” with its clear mission for PUMA to become the most desirable and sustainable Sportlifestyle company.

Besides Franz Koch (CEO), PUMA SE’s Managing Directors are Klaus Bauer (Operations), Stefano Caroti (Commerce), Antonio Bertone (Marketing) and Reiner Seiz (Supply Chain). No longer part of the management team is Melody Harris-Jensbach. The separation has been mutually agreed between the company and herself. The Product function that Harris-Jensbach has held, will not be filled with a managing director role in the foreseeable future, and will report directly to Koch.

The European Corporation is a legal form for companies that operate in several member states within the European Union. It facilitates cooperation across borders and is therefore – due to the international orientation of PUMA as a brand and company – a logical step to support the strategic growth of the Sportlifestyle company in the next phase of its development. More than 90 percent of PUMA’s staff of about 9700 is employed outside of Germany, whilst equally 90 percent of PUMA’s sales are generated abroad.

With the structure of PUMA as an SE, participation by PUMA’s employees will gain more importance. In addition to the national works councils in PUMA’s subsidiaries, PUMA SE will also have an SE works council – a panel of around 30 employee representatives from 26 countries. The SE works council will observe the rights of European Employees on information and consultation at PUMA SE. Furthermore, the employees will be represented on the Administrative Board of PUMA SE by three employee representatives from Europe.

The transformation of PUMA into a European Corporation was welcomed by the grand majority of shareholders. At PUMA’s 2011 Annual General Meeting in April, 99.82 percent of shareholders had voted in favour of the resolution of transforming PUMA AG into an SE, as suggested by the Board of Management and the Supervisory Board.

The shares of PUMA SE, which have been traded at the stock exchange since 1986, will remain
listed on the Xetra as well as Frankfurt floor trade under WKN 6969603/ISIN DE0006969603.

Highlights Second Quarter 2011

• Consolidated sales increased by 14.1% currency adjusted to a record second quarter high of € 674 million

• Gross profit margin holding up well at 49.1% despite pressure from external factors

• EBIT 3.2% above last year at € 55.4 million

• Net earnings up 10.6% to € 37.6 million

• EPS up to € 2.51 from € 2.26 last year

Highlights First Half 2011

• Consolidated sales up by 11.5% currency adjusted to a record € 1.45 billion

• Gross profit margin still a strong 50.9%

• EBIT 2.5% above last year at € 166.4 million

• Net earnings improved by 8.2% to € 115.3 million

• EPS increased to € 7.69 from € 7.07 last year

Outlook for the Financial Year 2011

• PUMA’s continued business success over the past six months confirmed the Management view that the 3 billion milestone in sales for the full year of 2011 is attainable.

• Sourcing cost increases caused by rising prices for commodities and higher wages in Asia will continue to impact gross margins. PUMA will continue to support business growth and the “Back on the Attack” growth strategy; thus investments in marketing, sales, product development as well as process optimization will continue to affect overall expenses.

• Although increases in sourcing costs and continued investments in brand and product will impact overall operational results, management foresees continuous improvement of net earnings by mid single-digits for the full year.

“I could not have asked for a better start to my new position as PUMA’s CEO than to announce the best second quarter in PUMA’s history in terms of sales, a performance that underlines our ambition to achieve our sales target of 3 billion Euros for this year,” said Franz Koch, CEO of PUMA SE. “The investments into our core markets, in line with our Back on the Attack company growth strategy, have started to pay off and we will continue to strengthen our brand and product in order to become the most desirable and sustainable sportlifestyle company in the world.“

PUMA’s Q2 Sales Record underpinned by Running Category and strong Growth in Latin America and Asia

With the global economic recovery having gained strength, the Sportlifestyle company PUMA posted a strong second quarter growth in consolidated sales of 14.1% currency-adjusted and 9.4% in Euro terms to € 673.5 million compared to last year, representing PUMA’s best ever second quarter sales performance.

PUMA Faas is building up momentum

With all product categories contributing to this increase, Footwear rose 16.2% currency adjusted to € 352.6 million, Apparel went up 10.7% to € 224.3 million and Accessories again posted an eye catching 15.0% increase to € 96.7 million. In particular, PUMA’s Running category grew significantly, boosted by the ongoing top seller PUMA Faas, a lightweight neutral racer for tempo runs and racing. The shoe is constructed with BioRide Technology, an integrated system that provides more natural running rhythm and enhanced speed. Another Performance category that performed well in the second quarter was Cobra-PUMA-GOLF as a result of synergies arising from the Cobra Golf integration.

In the Teamsport category, PUMA claimed another champion title with Uruguay winning the Copa America for the 15th time, building on their fourth place at the 2010 FIFA World Cup. The team also achieved their second-ever qualification for the FIFA Confederations Cup to be held in Brazil in 2013. Uruguay beat Paraguay 3-0 in Sunday’s final, becoming the most successful team in the tournament’s history. The FIFA Women’s World Cup in Germany provided another great opportunity, where PUMA further strengthened its brand awareness in Women’s Football. PUMA sponsored eight PUMA players on the German team as well as international stars from England, Canada, Norway, Sweden, France and the USA as well as brand ambassador Marta of Brazil, who all sported the PUMA Speed v1.11 football boot. In fact, the v1.11 scored most goals in the tournament, 16 in total.

Over the first half of this year sales across all categories increased in pace. Footwear sales were up 9.9% (10.9% currency adjusted), Apparel sales were up 7.0% (6.1% currency adjusted) and Accessories were up 29.4% (28.3% currency adjusted) partly due to the full year effect of Cobra golf.

Latin America and Asia remain the main growth areas

In regional terms, PUMA continued its excellent performance in the Americas with sales growing by 16.9% currency-adjusted to € 226 million. Latin America and Asia excelled with a strong double-digit rise with Lifestyle and PUMA’s Motorsport categories being the main growth drivers.

Sales in EMEA grew by 9.2% currency-adjusted to € 290 million with satisfying performances in both Western and Eastern Europe. Spain advanced significantly after a PUMA subsidiary was opened in the second quarter of last year. Women’s Fitness (Bodytrain) increased by double-digit rates.

Asia/Pacific posted a gain of 20.1% currency adjusted to € 158 million, as sales in Japan have recovered much faster than anticipated in the aftermath of the earthquake disaster, posting double-digit growth. PUMA’s Lifestyle (PUMA Social), Running (Faas and light-weight gear) and Fitness (Bodytrain) categories drove the overall growth.

Half-year EMEA sales are up 7.3% (6.5% currency adjusted), the Americas are up a satisfying 14.3% (18.4% currency adjusted) and Asia/Pacific is up an impressive 16.5% (13.0% currency adjusted).

Gross Profit Margin at industry-leading levels

The gross profit margin remained at an industry leading 49.1%, which is testament to PUMA’s continuing efforts to maximize returns and efficiencies.

The Footwear segment had a gross profit margin of 48.1%, down from 50.7%. Apparel stood at 48.9%, down from 52.1%. Both segments were impacted by slightly higher sourcing costs as well as negative currency impacts from hedging. Accessories were at 53.3%, a sharp jump from 46.3% which is based on last year’s impact of the Cobra takeover.

Overall the half year gross profit margin is down slightly to 50.9% after 51.5% last year. The Footwear margin is currently at 49.8%, Apparel at 51.4% and Accessories at 53.7%.

Operating Expenses

Operating expenses rose by 10.3% to € 279.9 million during the second quarter of 2011. As a percentage of sales, this represents a slight increase from 41.2% to 41.6% compared to last year. For the full year to the end of June 2011, OPEX rose by 15.9% to € 578.5 million. Increases in expenditure arose from our continued investments outlined in our 5-year growth plan and the full year effects caused by the extension of the scope of consolidation with Cobra and PUMA Spain now fully included.

EBIT

Operating profit came in as expected, improving to € 55.4 million from € 53.6 million. This represents 8.2% of consolidated sales, down slightly from a rate of 8.7% at this time last year. On a half year basis EBIT is up slightly to € 166.4 million.

Financial Result / Income from associated companies

The financial result declined from € -1.3 million to € -1.6 million, however, the half year number improved from € -2.7 million last year to € -1.8 million.

Earnings before Taxes

PUMA’s second quarter EBT rose from € 52.3 million to € 53.8 million. They also rose from € 159.6 million to € 164.6 million on a half yearly basis. Quarterly tax expenses declined from € 18.2 million to € 16.2 million and the tax rate dropped from 34.9% to a normalized tax rate of 30.0%.

Net Earnings

Consolidated net earnings increased by 10.6% to € 37.6 million from € 34.0 million in 2010. Earnings per share rose from € 2.26 to € 2.51, and diluted earnings per share were up from € 2.25 to € 2.51.

For the first half of 2011, net earnings rose by 8.2% to € 115.3 million. EPS increased by 8.8% to € 7.69.

Net Assets and Financial Position

Equity

Total assets (as of 30th June 2011) grew by 2.6% from € 2,284.8 million to € 2,343.4 million. This rise is primarily attributable to an increase in non-current assets in the form of deferred taxes and non-current assets as a result of our ongoing capital investment program. The equity ratio rose from 58.6% to 59.4%. In absolute figures, shareholders’ equity increased by 4.1% to € 1,392.5 million from € 1,338.3 million. PUMA’s balance sheet remains strong.

Working Capital

PUMA’s overall Working Capital went up by 13.0% to € 509 million. On the asset side, inventories went up by 12.1% from € 453.1 million to € 508.0 million, supporting our continued and expected sales growth. Trade receivables also increased, up 5.0% from € 497.1 million to € 522.0 million. This again is an effect of our growth in sales compared to this point in time last year. On the liabilities side, trade payables rose 7.6% from € 395.4 million to € 425.3 million.

Cashflow/ Capex

The Free Cashflow (before acquisitions) came in at € -9.2 million versus € 57.2 million last year. The additional outflow resulted from tax payments and higher working capital needed as well as higher CAPEX. The payments for acquisitions are related to the purchase of the outstanding shares in our Chinese venture. For Capex, the company spent € 29.1 million versus € 18.5 million in 2010. The increase derives mainly from investments in the improvement of organizational processes and IT as well as in the expansion of our Retail store portfolio, which are necessary components of our growth strategy.

Cash Position

Total cash (as of 30th June, 2011) dropped by 21.6% to € 351.6 million from € 448.3 million last year. Bank debts were reduced by 41.2% from € 51.5 million to € 30.3 million. As a result, the net cash position decreased 19.0%, from € 396.8 million to € 321.3 million.

Share buyback

PUMA continued with its share buy-back program and purchased 72.853 shares for € 15.7 million during the second quarter. The company now holds 173.377 shares in total as treasury stock which equals 1.15% of the subscribed capital.

Other Events

PUMA AG converts to a Societas Europaea (SE)

With the completion of the transformation on July 25th,, 2011, Franz Koch has become Chief Executive Officer, with Jochen Zeitz taking over as Chairman of the Administrative Board of PUMA SE. At the same time, he will lead PPR’s Sport & Lifestyle Division. In this role, he will ensure PUMA SE’s continuous and strategic growth within the framework of the next phase of development and support the drive to sustainability as PPR’s Chief Sustainability Officer.

SPANISH Court Ruling

As already announced in an ad hoc release on 17th of June, 2011 the arbitration ruling of 2nd June, 2010 by a Spanish arbitration panel regarding the one-time payment of 98 million Euros has been repealed by the District Court of Madrid. PUMA is therefore no longer obliged to pay the amount of 98 million Euros.

Outlook for the Financial Year 2011

PUMA continues to target the € 3 billion sales mark for the full year which reflects a continuation of our first-half sales. There will, however, continue to be pressure on gross profit margins in the shape of higher raw material prices and Asian wage increases, although PUMA has thus far shown an ability to keep its gross profit margins at the highest level within the industry. Despite higher operating expenditures which are in line with the overall strategy, PUMA expects absolute net earnings to improve in the mid single digit range.

The partnership between the 34th America’s Cup and PUMA represents the continued reinvention of the Cup. From the groundbreaking AC45 wing-sailed catamaran and breakthrough television graphics to athlete’s view cameras and premium sportswear, every change of the 34th edition is focused on transforming the sport of sailing into fan-driven experience.

Craig Thompson, CEO, America’s Cup Event Authority said: “The new America’s Cup represents a radical shift in the way people will connect with the sport of sailing. We’ve looked at every component of the event from the viewer’s eye so we can create customized experiences for audiences around the globe. We’re committed to providing the ultimate in performance sportswear for our fans, and in PUMA, we’ve found a partner who can deliver on that promise.”

“PUMA’s approach to sailing has always been a little bit different,” said Antonio Bertone, Chief Marketing Officer for PUMA. “We’re the mavericks in the industry, intent on shaking up the sport with campaigns, products and partnerships that reach new audiences, dial up the ‘fun’ and push the boundaries of performance technology. America’s Cup embraces a similar philosophy and re-emerged as the hottest thing to happen to professional sailing in decades. We’re excited to come aboard as the official sportswear partner for the Cup.”

PUMA first entered the sailing category in 2008 when it developed a line of performance and lifestyle footwear, apparel and accessories to support the launch of the PUMA Ocean Racing. Driven by a massive global marketing machine focused on media and fan engagement, its early successes helped establish PUMA as a credible sailing brand and paved the way for the partnership with the America’s Cup.

The 34th America’s Cup and PUMA also share a commitment to sustainability and the health of the world’s oceans. The 34th America’s Cup is embarking upon a major ocean awareness campaign aimed at restoring the health of the worlds’ oceans by inspiring people to take immediate action. PUMA is committed to working across the globe in sustainable, creative and innovative ways to lessen the company’s impact on the environment and to give back what it takes from the planet by seeking to reduce its carbon footprint in all areas of business. Ocean preservation will be a major focus for PUMA across all of its sailing platforms. Additionally, the America’s Cup sportswear produced by PUMA will be made from more sustainable fabrics.

“We want partners who not only understand the dramatically changing landscape of sport, but also the importance of putting the needs of our stakeholders at the forefront, which is evident in PUMA’s commitment to global sustainability,” added Thompson.

“Environmental stewardship is our collective responsibility,” said Bertone. “Together with the America’s Cup, we have a unique opportunity to reach people across the globe and raise awareness of the critical importance of marine preservation.”

“There was only one company for us. It was PUMA. It’s a hot brand with seriously cool gear,” said ORACLE Racing Skipper James Spithill during a press briefing today at the inaugural America’s Cup World Series regatta in Cascais, Portugal. The partnership will be built around a full design and development programme to meet the exceptional demands athletes face while racing new high-speed America’s Cup wingsailed multihulls.

PUMA continues to expand its sailing performance line, including gear tailored to the needs of the ORACLE Racing team. PUMA’s Sailing performance footwear, apparel and accessories have been created and tested by the world’s best sailors, under the most extreme conditions. The gear is appropriate for all weather conditions, featuring various types of layering made from highly durable fabrics.

PUMA Sailing apparel is designed for comfort, with lightweight material and ergonomic shapes that ensure total freedom of movement. PUMA’s ORACLE Racing Team fan wear for men, women and children – including tees, polos and hooded jackets – will be made with sustainable materials and “Cotton made in Africa.”

“For PUMA, this is a great opportunity to align with a team on the cutting edge of innovation,” said Antonio Bertone, Chief Marketing Officer for PUMA. “ORACLE Racing is not only defending the Cup, but they are taking sailing to the next level – the boats are fast, the crews are dynamic and the racing is exciting to watch. This is the next step in developing the performance aspects of the sailing gear, along with connecting to a larger audience to spread the passion and joy of the sport.”

ORACLE Racing’s CEO and four time America’s Cup winner, Russell Coutts, welcomed PUMA aboard: “It’s fantastic to have the most recognizable brand in sport sharing the vision for a faster and more exciting America’s Cup and to have PUMA alongside us for the next three years in our bid to stay the champion team.”

“This will be one the toughest briefs ever given to a clothing company,” explained James Spithill. “The guys onboard will have phenomenal aerobic work rate, with high body temperatures, whilst needing protection from drenching spray. Not only will boatspeeds exceed 30 knots (35mph/40kph) creating wind chill, but the clothing must be aerodynamically efficient for low drag.”

ORACLE Racing’s James Spithill and Russell Coutts lead two crews contesting the inaugural America’s Cup World Series regatta in Cascais, Portugal. Racing starts on Saturday August 6 and runs through to Sunday August 14. This is the first of the many competitions in which the defending champion will meet the challengers for the 34th America’s Cup.

PUMA first entered the sailing category in 2008 when it developed a line of performance and lifestyle footwear, apparel and accessories for the PUMA Ocean Racing entry which finished 2nd in the 2008/9 round the world race. These early successes helped establish PUMA as a credible sailing brand and paved the way for the ORACLE Racing partnership. PUMA is also the Official Sportswear Partner for the 34th America’s Cup.

Bolt was clearly in a determined mood as he prepared for the final, winning the preliminary heats and semi-final comfortably. The tension around the stadium was intense, but when the moment came, Usain responded well to the starter’s gun, exploding out of the blocks before powering into an unbeatable lead. His post-race celebrations were typically flamboyant as he jumped the barrier to entertain the Daegu crowd.

Usain Bolt said “I am very happy and proud to have won here today. After the false start on Sunday, I was extremely disappointed not to have given myself the chance to defend my 100m title. The 200m represented a great opportunity for me to put it behind me and move on, and I’ve been determined to do so all week. The crowd was wonderful here tonight and I really enjoyed the moment.”

The Jamaica men’s relay team made history on the last day of the World Championships in Daegu, breaking their own World Record for the 4 x 100m relay. The relay was the very last event in the 2011 IAAF World Championships and the first World Record – making this even more of a triumph for Jamaica. Nesta Carter got off to a great start, followed by Michael Frater, who passed the baton over to the new 100m World Champion Yohan Blake who tore round the bend to hand over to Usain Bolt who powered down the home stretch to claim his second gold medal of the Championships and complete a new World Record.

The silver PUMA Bolt Spike Ltd race spikes that helped Usain Bolt reclaim his IAAF World Championship 200m crown in Daegu are the latest innovation of the Theseus II track spike. The World’s Fastest Man first wore this line of spike when he broke the 100m World Record in New York in 2008, and has continued to wear them through its various evolutions. The World’s Fastest Man also wore personalised gold Theseus II spikes when he took the 2008 Olympic Games in Beijing by storm, winning three gold medals and breaking two World Records in the process. One year later, the same shoe in an orange colourway propelled him to shatter his 100m and 200m world records in the IAAF World Championships in Berlin.

Usain Bolt has worked closely with PUMA over the last five years to develop the optimum running shoe and through this collaborative process the Theseus II has evolved into the spike worn today. Microfiber synthetic that match the characteristics of K-leather creates a glove-like fit for the PUMA Bolt Spike Ltd, and enhances sprinting efficiency through the stiffness of material. Microfiber suede lining on the inside create a soft on-skin feel, and asymmetrical lacing also facilitates comfort and an improved fit. A pebax plate material in the midsole, combined with a 100% woven carbon fiber forefront, helps Bolt gain a higher energy return while powering down the track, and an increased curved and rounded bottom with a lower instep midfoot fit optimizes stability while running at a quicker pace. Like Bolt himself, this spike defines fast.

Bolt’s sprint spike is also the inspiration for PUMA’s Faas range of lightweight running shoes. The PUMA Faas 200, 300, 400 and 500 styles are designed to give runners a more natural running rhythm and enhanced speed, but with a touch of old-school styling, inspired by iconic silhouettes like PUMA’s Easy Rider. Having studied the movement, foot placement and overall running styles of Usain Bolt and other athletes, PUMA identified three proven and consistent skills that were critical to top performance. These elements were then translated into three categories —Rocker Flex and Groove. The unique rocker shape allows for a biomechanically efficient stride with an effortless toe-off. The flex grooves built across the tooling increase responsiveness. The PUMA Faas range is available online and at retail stores worldwide.

PUMA will also provide MERCEDES GP PETRONAS with its latest innovations of fireproof racewear for the team’s drivers and all technical pit personnel. As the Sportlifestyle brand with the longest heritage in motorsport, PUMA’s development of fire retardant technology has helped revolutionise driver racewear by dramatically reducing weight, while maintaining the optimal performance of safety and comfort.

Ross Brawn, Team Principal at MERCEDES GP PETRONAS commented: “PUMA has a long and successful heritage in motorsport and, having worked with them previously in Formula One, I know their technical performance innovations for racewear are amongst the best in the industry, which is of course critical to our racing operation. PUMA’s global capability to design, develop and distribute licensed products for fans of the Silver Arrows around the world is equally impressive. This is a key partnership for MERCEDES GP PETRONAS, and one we are delighted to have established.”

Christian Voigt, Senior Head of Global Sports Marketing at PUMA said: “PUMA is fully committed to motorsport for the long term, and signing this partnership with the MERCEDES GP PETRONAS team is a major statement for us as a brand. Mercedes-Benz has such a rich heritage in motorsport and MERCEDES GP PETRONAS is an exciting continuation of this story. With such talented drivers and team personnel, it’s clear they are destined for great things in the years to come. Combining our experience in licensed product development and distribution with the brand equity of the team has significant commercial benefits for both parties, and is another strong basis for this new partnership.”

Highlights Third Quarter 2011

• Consolidated sales increased by 10.2% currency adjusted to € 841.6 million

• Gross profit margin remained at 50.0% despite volatile input prices

• EBIT improved by 1,8% to € 118.6 million

• Net earnings remained flat at € 81.7 million

• EPS are up to € 5.45 from € 5.43

• PUMA has signed football stars Agüero, Falcao and Fàbregas

Highlights First Nine Months of 2011

• Consolidated sales climbed 11.0% currency adjusted to € 2.3 billion

• Gross profit margin remained at a sector-best 50.6%

• EBIT rose by 2.2% to € 285.0 million

• Net earnings improved by 4.7% to € 197.1 million

• EPS increased from € 12.51 to € 13.15

Outlook for the remainder of the Financial Year 2011

• PUMA’s management reiterates that PUMA’s target is € 3 billion in sales for the full year.

• In light of PUMA’s “Back on the Attack” growth strategy, investments and expenses will remain at a high level, and gross profit margins will continue to be stressed based on procurement price volatilities.

• Management continues to foresee an improvement of net earnings in mid single-digits for the full year.

“PUMA posted a very solid sales performance for the fifth consecutive quarter,” said Franz Koch, CEO of PUMA SE.”This underpins our 5-year growth strategy, which is already delivering results. After a strong performance in the first nine months of this year, we are now approaching our sales target of € 3 billion for the full year, and despite continuing cost pressures we maintain our forecast of an improvement in net earnings in mid single-digits.“

Asia/Pacific and Latin America drive PUMA’s Sales Growth in the Third Quarter – Performance Business accelerating

PUMA’s third-quarter consolidated sales rose 10.2% currency adjusted and 7.3% in Euro terms to € 841.6 million compared to last year, representing the most successful quarterly performance in the firm’s history. Asia and Latin America provided the platform for these numbers, underpinning the excellent overall result with double-digit growth.

With all product categories contributing to this increase, Footwear rose 7.0% currency adjusted to € 431.1 million, Apparel went up 13.8% to € 294.7 million and Accessories climbed 13.9% to € 115.8 million.

PUMA’s Running category in particular grew significantly, boosted by Usain Bolt’s spectacular performances at the Track & Field World Championships in Daegu and by the light-weight concept which includes our best selling PUMA Faas range. The shoe is constructed with BioRide Technology which provides runners with a naturally responsive ride. PUMA’s Women’s Fitness category is growing strongly, a consequence of enhanced targeting of the female consumer demographic with PUMA’s Bodytrain concept. PUMA’s Sailing category also improved, as sales have been accelerating in the run-up to PUMA’s participation in the Volvo Ocean Race 2011-2012. Given the duration of this sailing marathon and in the light of our new extended range of outdoor products, PUMA expects the positive performance of its Sailing category to continue.

PUMA’s five-year growth plan “Back on the Attack” already yielding fruit

As previously detailed, PUMA is continuing to work on improving its performance categories without losing sight of its Sportlifestyle positioning as a brand. This was laid out in the company’s growth strategy one year ago, which focused on strengthening PUMA’s Sports Performance business alongside its lifestyle segment. To further boost PUMA’s brand visibility on international football pitches and underline our position as the No. 3 football brand, PUMA signed three of the world’s top football stars during the third quarter: Manchester City’s Sergio Agüero, Atletico Madrid’s Falcao and FC Barcelona’s Cesc Fàbregas.

PUMA also introduced its new football boot, the Powercat 12. These boots will be worn by Fàbregas, Nemanja Vidic of Manchester United and Gianluigi Buffon, goalkeeper of the Italian National Team, amongst others. This innovative boot features the new PUMA 3D DUO Power Shooting Technology, applied to the inside of the boot.

Cobra-PUMA-Golf also continues to perform well, where the 360 degree offering appeals to discerning consumers. PUMA also congratulates its brand ambassador and golf professional Lexi Thompson who, at 16 years of age, has become the youngest ever winner on the LPGA tour in America.

Asia/Pacific and Latin America remain the main growth areas in the quarter

In regional terms, PUMA continued its excellent performance in Asia/Pacific, with sales growing by 16.4% currency-adjusted to € 196.0 million. Light-weight Running gear such as the Faas range and Women’s Fitness products (Bodytrain) drove the overall growth in this region.

EMEA also performed well, posting an increase of 9.5% currency adjusted to € 410.6 million. Russia, Turkey, Spain and Germany in particular contributed to this performance.

Sales in the Americas grew by 6.7% currency-adjusted but were down 0.7% in Euro terms at € 235.0 million. Latin America delivered a remarkable top-line performance, reflecting broad-based double-digit growth across all countries in the region, while North America had to comp against strong double-digit growth numbers from the previous year.

Consolidated sales for the nine-month period climbed 11.0% currency adjusted (9.9% in Euro terms) to € 2.29 billion. EMEA sales rose 7.7% (7.6% currency adjusted), the Americas improved a satisfying 8.7% (14.2% currency adjusted) and Asia/Pacific climbed an impressive 16.4% (14.3% currency adjusted).

Nine-month sales across all product categories continued to climb. Footwear sales were up 7.5% (9.5% currency adjusted), Apparel sales increased 8.8% (8.9% currency adjusted) and Accessories grew 22.7% (22.8% currency adjusted), due in part to the full year effect of the Cobra golf acquisition last year.

Gross Profit Margin remains at industry-leading levels despite cost pressure

PUMA’s ongoing efficiency drive has resulted in a third quarter gross profit margin of 50.0%, which remains the industry leading number.

The Footwear segment had a gross profit margin of 49.8%, up from 49.7%. Apparel stood at 50.3%, up from 50.0%. Accessories were at 50.0%, a decline from 51.8% which can be attributed to higher procurement costs.

For the first nine months of 2011, gross profit margin is down slightly to 50.6% from 51.0% compared to last year. The Footwear margin is currently at 49.8% down from 50.4%, Apparel down from 51.9% to 50.9% and Accessories up from 51.2% to 52.4%.

Operating Expenses

Operating expenses rose by 9.7% to € 307.0 million during the third quarter of 2011. As a percentage of sales, this represents a slight increase from 35.7% to 36.5% compared to last year. For the full year to the end of September 2011, Operating expenses rose by 13.6% to € 885.5 million. Increases in expenditure arose from our continued investments outlined in our 5-year growth plan and the full year effects caused by the extension of the scope of consolidation with Cobra and PUMA Spain now fully included. The majority of those incremental increases went into Marketing, Product Design and enhancements in our supply chain.

EBIT

Operating profit improved to € 118.6 million from € 116.6 million in line with expectations. This represents 14.1% of consolidated sales versus 14.9% at this time last year. On a nine month basis EBIT was up 2.2% to € 285.0 million.

Financial Result / Income from associated companies

The financial result declined from € -1.4 million to € -2.1 million, however, the nine month number improved from € -4.1 million last year to € -3.9 million.

Earnings before Taxes

PUMA’s third quarter EBT rose from € 115.1 million to € 116.6 million. They also rose from € 274.8 million to € 281.1 million on a nine month basis. Quarterly tax expenses increased from € 33.4 million to € 34.9 million and the tax rate increased from 29.0% to 30.0% in the quarter but improved from 31.5% to 30.0% as of September 30, 2011.

Net Earnings

Consolidated net earnings were flat at € 81.7. Earnings per share rose from € 5.43 to € 5.45, and diluted earnings per share were up from € 5.39 to € 5.45.
For the first nine months of 2011, net earnings rose by 4.7% to € 197.1 million. EPS increased by 5.1% to € 13.15.

Net Assets and Financial Position

Equity

Total assets(as of September 30, 2011) grew by 4.5% from € 2,319.0 million to € 2,422.5 million. This rise is primarily attributable to an increase in both inventories and trade receivables based on the additional volume in business. The equity ratio rose sharply from 57.8% to 62.9%, signifying further improvement in our capital base. In absolute figures, shareholders’ equity increased by 13.7% from € 1,340.2 million to € 1,524.3 million.

Working Capital

PUMA’s overall Working Capital went up by 35.0% to € 668.7 million. On the asset side, inventories went up by 18.5% from € 449.2 million to € 532.4 million, supporting our continued and expected sales growth in addition to our new styles and offerings. Trade receivables also increased, up 13.3% from € 538.9 million to € 610.5 million. This again is an effect of our growth in sales compared to this point in time last year.

Cashflow/ Capex

The Free Cashflow (before acquisitions) came in at € -89.4 million versus € 57.9 million last year. The additional outflow resulted from tax payments and higher working capital needed as well as higher CAPEX. For Capex, the company spent € 44.6 million versus € 35.5 million in 2010. The increase derives mainly from investments in the improvement of organizational processes and IT systems as well as in the expansion of our Retail store portfolio, all of which continue to be integral components of our growth strategy.

Cash Position

Total cash (as of September 30, 2011) dropped by 30.7% to € 289.5 million from € 417.9 million last year. Bank debts were reduced by 39.9% from € 57.2 million to € 34.4 million. As a result, the net cash position decreased 29.3%, from € 360.7 million to € 255.1 million.

Share buyback

PUMA did not activate its share buyback program during the third quarter of 2011.

Outlook for the Financial Year 2011

Going into the final quarter of 2011, we reiterate that PUMA’s target is €3 billion in sales for the full year. Our overall outlook remains positive despite the current uncertainty afflicting various markets at this time. We anticipate ongoing input cost volatility, although we have demonstrated in the third quarter that our ability to maintain gross profit margins remains undiminished. As previously communicated, our current elevated operating and capital expenditures are an integral part of our growth strategy. None the less, we continue to expect full year net earnings to improve in the mid-single digit range.

Franz Koch, Chief Executive Officer at PUMA SE commented: “We are really excited about this new addition to our football portfolio. Borussia Dortmund perfectly embodies the mix of sport and lifestyle, an ethos we share at PUMA. The brand values emphasised by both companies of joy, enthusiasm and passion make this partnership a perfect match. Our association with Borussia Dortmund will allow us to further expand our position as the clear number three football brand.”

Matthias Bäumer, General Manager at PUMA Germany says: “We are very pleased to be able to strengthen our portfolio with such a long-standing and successful Bundesliga club as Borussia Dortmund. The enthusiasm of this club and its unique fans will not only allow us to leave our mark in the field of Teamsports and merchandising, but provide our retail partners with innovative football product and marketing concepts.”

Hans-Joachim Watzke, Borussia Dortmund Club President said: “Borussia Dortmund is thrilled to enter this new partnership with PUMA. We share a great synergy with PUMA, we both have brand values that extend beyond simply performance on the pitch, and our work together in coming seasons will reflect this. From our very early conversations with PUMA it was abundantly clear that they wished to make Borussia Dortmund fans integral to the brand’s football campaigns in Germany, to value them as we do. This marketing focus was a key reason for us signing a partnership with PUMA, and we are excited about the prospect of implementing these plans for the 2012/13 season and beyond.”

Borussia Dortmund will become the third current Bundesliga club to partner with PUMA, joining VfB Stuttgart and TSG Hoffenheim in the global Sportlifestyle brand’s football family. PUMA also partners with numerous club teams such as Girondins Bordeaux, AS Monaco, Feyenoord Rotterdam, Tottenham Hotspur, SS Lazio and Olympiakos Piräus as well as international teams including Italy, Czech Republic, Switzerland, South Africa, Cameroon, Ghana, Ivory Coast, Algeria, Chile and Uruguay. Borussia Dortmund will also join a host of international player assets that have joined PUMA in recent months including Sergio ‘Kun’ Aguero, Ramadel Falcao and Cesc Fabregas.

The morning rain let up and the skies cleared in time for race start. PUMA’s Mar Mostro and crew quickly made their way down the first leg, rounding the first mark in third position. Shortly after passing the second mark, they moved ahead of CAMPER to take the second position behind Abu Dhabi. Although the breeze died, forcing the race course to get shortened, PUMA held on to second place through the third gate and across the finish line. CAMPER finished third, followed by Team Sanya in fourth, the Groupama sailing team in fifth and Team Telefónica in sixth.

“We got off to a good start,” said tactician Kelvin Harrap. “At the first turning mark, we had the opportunity to turn inside Abu Dhabi, but we took the conservative option and went behind them. At the bottom mark we went past CAMPER. Then, the rest of the race was just a matter of staying in the breeze – it was so variable. We sailed well today.”

Three special guests joined the team onboard to witness the action first hand: PUMA CEO Franz Koch, BERG CEO Håkan Svensson and HRH Prince Carl Philip of Sweden.

“It was truly awesome to be out there with the boys,” said Koch. “I was sitting in the back with Prince Carl Philip and we had a good time, chatted a lot and talked about the strategy for the race. It was wonderful to see the team in action and a great experience. I think we’re well positioned, and I look forward to following the team throughout the race.”

The In-Port Race marked the first opportunity for teams to score points towards the overall standings in the Volvo Ocean Race 2011-2012. With five points, the team heads into the start of Leg 1 next week in second place on the leaderboard.

On Sunday, the Pro Am Race will begin at 10:00 UTC (12:00) local with the first of three races. Guests onboard each race will participate in sailing PUMA’s Mar Mostro around the race course. Koch and Svensson will once again join the PUMA crew for the Pro Am, and this race they’ll get a bigger piece of the action.

In-Port and Pro Am races will be held at all 10 port stopovers. The first leg of this year’s Volvo Ocean Race gets underway on Saturday, November 5, and the fleet will travel 39,000 nautical miles, finishing in Galway, Ireland, in July 2012.

The PUMA Ocean Racing team is under the leadership of Read (Newport, Rhode Island, United States). The team includes: Tom Addis, Navigator (Sydney, Australia); Ryan Godfrey, Pitman (Adelaide, Australia); Kelvin Harrap, Helmsman, Inshore Tactician (Napier, New Zealand); Brad Jackson, Watch Captain (Auckland, New Zealand); Rome Kirby, Trimmer & Driver (Newport, Rhode Island, USA); Michael “Michi” Müller, Bowman (Kiel, Germany); Tony Mutter, Watch Captain (Auckland, New Zealand); Casey Smith, Bowman (Brisbane, Australia); Jonathan “Jono” Swain, Helmsman & Trimmer (Durban, South Africa); Amory Ross, Media Crew Member (Newport, Rhode Island, USA); Kimo Worthington, General Manager (Portsmouth, Rhode Island, United States); and Tim Hacket, Shore Team Manager (Sydney, Australia).

RESULTS

Position / Team / Time / Points

1. Abu Dhabi Ocean Racing / 53 minutes 44 seconds/ 6
2. PUMA Ocean Racing powered by BERG / 1:07:58 / 5
3. CAMPER with Emirates Team New Zealand / 1:10:11 / 4
4. Team Sanya / 1:10:43 / 3
5. Groupama sailing team / 1:11:11 / 2
6. Team Telefónica / 1:12:08 / 1

QUOTING KEN READ:

On today’s result:
“You like getting points any time you have the opportunity to do so. We now go into this week with good morale. But, as soon as the next gun fires, it’s all wiped away and it’s time to start again.”

Today’s unveiling at the Design Museum in London, brought together high profile football players and CAN artists from each of the 10 PUMA partnered teams, including Samuel Eto’o of Cameroon, John Mensah of Ghana and Yaya Touré of Ivory Coast. With the 2012 Orange Africa Cup of Nations® fast approaching, the event was the perfect platform for PUMA to demonstrate how the brand has fused its work within sport and art, seamlessly bringing together two worlds that don’t often collide.

Central to the project is PUMA.Creative (a programme of PUMAVision), that brings together individual artists and organizations, and provides them with a platform for creative exchange and international exposure. Through PUMA.Creative’s CAN programme, artists were commissioned to design a football jersey inspired from the country’s heritage, culture and traditions. Ten artists worked with their home nation to create unique and inspiring designs for the official football kits.

“PUMA has been at the forefront of integrating the two disparate worlds of sport and art, and today through a celebration of football, art, colour and culture, we have shown to the world how these two spheres can be uniquely combined,” comments Franz Koch, CEO of PUMA SE. “PUMA has a long standing history with Africa, and this event demonstrates how as a brand we continue to be fully committed to our relationship with the continent.”

PUMA does indeed have a celebrated history with African football, each year bringing something new and different to the football category. Notable highlights include the African Unity Kit for the FIFA World Cup 2010 and the Cameroon Unikit in 2004. Art has also featured prominently in PUMA projects: to celebrate the FIFA World Cup 2010, the brand commissioned contemporary artist Kehinde Wiley for a series of portraits with African football players and to design African-inspired lifestyle products.

The PUMA partnered African national teams represented include Cameroon, Ghana, Ivory Coast, Algeria, Namibia, Senegal, Togo, Gabon, Burkina Faso and PUMA’s newest partner South Africa, which signed with the sportlifestyle brand in June 2011. The technical kits have been designed to maximise the player’s on-pitch performance. The jersey fits the body closely to avoid grabbing from the opponent, it also emphasises the physique of the players, allowing them to exhibit their physical presence on the pitch. The fabric features PUMA’s U.S.P Moisture Management technology, enhancing body performance by dragging moisture away from the body, enhancing air flow and keeping the body at the ultimate performance temperature.

Terence Parris, Head of Teamsports Marketing at PUMA SE comments, “African football continues to play a huge part in our global sports marketing strategy. Over the past decade, we have progressively developed our relationship with Africa, investing in grassroots projects, player relationships and African federation partnerships. The emotion and passion of African football perfectly complements our brand ethos and we are uniquely privileged to be in a position to work with a continent with such rich culture and heritage. These football kits embody all of our brand values.”

PUMA has worked with the Design Museum in London to launch a month-long exhibition ‘Interpretations of Africa: Football, Art and Design’ to celebrate PUMA’s inspired new football kit designs for the 10 PUMA partnered African National football teams.

Through the African kits revealed today, ‘Interpretations of Africa: Football, Art and Design’ explores the response of the 10 artists from the Creative African Network, to a demanding brief, focused on Africa’s unique visual identity and culture. The exhibition charts the artists’ journey, inspiration, and design process, demonstrating howAfrica’s culture and history can be captured in both an artwork and a corresponding sportswear design.

The exhibition will feature original artwork and sketches alongside development work and the resulting final football kits created by the artists involved, including Barthélémy Toguo ofCameroon, Zineb Zedira ofAlgeriaand Godfried Donker ofGhanawho have all become renowned in the art world for their emotive and captivating work. The other artists representing their nations are: Saïdou Dicko ofBurkina Faso, Ernest Düku ofIvory Coast, Owanto of Gabon, Hentie van der Merwe ofNamibia, Samba Fall of Senegal, Hasan and Husain Essop ofSouth Africaand El Loko ofTogo.

Alex Newson, Exhibition Curator,DesignMuseum,Londonadds, “As a design challenge, creating a new national football kit is a complicated and demanding brief. The results of the collaboration between PUMA and the group of celebrated artists are remarkable and testament to the talent, pride and passion evident in both African art and football and this exhibition charts this unique journey.”

The exhibition is open for public viewing from November 8 – 27, 2011, 10.00am – 17.45pm.

Continuing with a partnership that started in 1998, PUMA will remain the official supplier of playing kits, training and representation apparel and equipment for all associated Swiss national teams, including the National A, Youth, Women’s and Futsal teams. PUMA will also extend its active partnerships of various SFV grass roots and youth initiatives, including the Credit Suisse Football Academies.

Today in Feusisberg, Switzerland, PUMA also unveiled the new home playing kit for the Swiss National Team. Part of the Power 12 range of PUMA kits that includes Italy, Uruguay, Czech Republic and Austria, the Switzerland kit is unique as it incorporates the Swiss flag on the shirt, shorts and socks, in addition to the SFV badge. Engineered mesh at the front of the shirt increases breathability and a technical fabric greatly improves moisture wicking tendencies.

Franz Koch, CEO of PUMA SE said, “We are delighted to extend and deepen our partnership with the Swiss Football Association. The SFV’s work and commitment to the development of football at all levels in Switzerland is very impressive, evidenced by both the Switzerland U17 team winning the FIFA U-17 World Cup last year and the U21 team reaching the final of the UEFA U21 Championship earlier this year. We are proud to be associated with SFV, as they strive to build on these successes in the coming years.”

Alex Miescher, General Secretary of SFV commented, “The SFV has enjoyed a highly successful partnership with PUMA over a 13 year period, and we are thrilled to announce the continuation of this relationship. PUMA’s proficiency in developing technical performance playing and training apparel is second to none, and their support in the development of our grass-roots and youth programmes has been instrumental. They are the perfect partner for the SFV in every respect, and we very happy to continue with them.”

In addition to the SFV, PUMA also partners with Swiss international players Johan Djourou, Stephan Lichtsteiner, Diego Benaglio and Xavier Margairaz.

Furthermore, in acknowledging the PUMA EP&L today as an innovative sustainability approach, the PPR Group, PUMA’s majority shareholder, announced that this groundbreaking economic valuation methodology1 for a company’s environmental impacts will be implemented across its Luxury and Sport & Lifestyle brands by 2015.

After publishing an economic valuation of € 94 million of GHG emissions and water consumption in May this year2, PUMA has now finalised its 2010 E P&L by adding € 51 million caused by land use change for the production of raw materials, air pollution and waste along its value chain. Only € 8 million of the € 145 million total derive from PUMA’s core operations such as offices, warehouses, stores and logistics while the remaining € 137 million fall upon PUMA’s supply chain. These costs, which will not affect PUMA’s net earnings, will serve as an initial metric for the company when aiming to mitigate the footprint of PUMA’s operations and all supply chain levels.

“The unprecedented PUMA Environmental Profit and Loss Account has been indispensible for us to realize the immense value of nature’s services that are currently being taken for granted but without which companies could not sustain themselves,” said Jochen Zeitz, Executive Chairman of PUMA and Chief Sustainability Officer of PPR. “At PPR HOME, we view the PUMA EP&L as an essential tool to help drive PPR’s sustainability development across its Group of brands because analysing a company’s environmental impact through an E P&L and understanding where environmental measures are necessary will not only help conserve the benefits of ecosystem services but also ensure the longevity of our businesses. The results of the PUMA E P&L underpin the urgency for a paradigm shift in the way we all currently do business and I have been pleased to also see that the release of PUMA’s first results has generated widespread interest among governments, corporations, NGOs and academics.“

The PUMA E P&L and the associated methodology3 were developed with the support of PricewaterhouseCoopers LLP and Trucost PLC, using recognised ecological and economic techniques and building on a large volume of work in the fields of environmental and natural resource economics. The valuation of the overall results shows:

• PUMA’s supply chain is responsible for 94% or € 137 million of its total environmental impact.

• Over half (57% or € 83 million) of all environmental impacts are associated with the production of raw materials (including leather, cotton and rubber) in Tier 4 of PUMA’s supply chain4.

• Only 6% or € 8 million derive from PUMA’s core operations such as offices, warehouses, stores and logistics; a further 9% (€ 13 million) occur in Tier 1, with the remaining 85% (€ 124 million) in Tiers 2-4.

• GHGs make up 90% of the total impact of PUMA’s offices, stores and warehouses.

Alan McGill, partner, Sustainability and Climate Change, PwC, said: “These values are enough to make any business pay attention. The PUMA E P&L offers a real insight into the environmental consequences of commercial decisions and at the same time highlights potential commercial consequences of the environmental realities unfolding around the world. This will make many companies consider how they can apply similar analysis in their own organisations. Companies – big and small – are now reliant on global supply chains, making their environmental footprint much larger than many realise. Assigning economic values to the environmental impact of a company’s operations enables a business to tackle vital questions now, not just about environmental impacts, but business risk, costs savings and finding new ways to become more effective. Without measuring them, the impacts cannot be managed, or reduced.”

E P&L Results Break-Down

Water Use and Greenhouse Gas Emissions

The impacts of water use and GHGs were found to be roughly equal, together making up just under two thirds of the overall impact (around € 47 million each)5. (For more details, please refer to the press materials of PUMA’s May 2011 announcement on http://about.puma.com/?p=6644)

Land Use

Negative impacts on biodiversity and ecosystem services as a result of land-use for agriculture and buildings in PUMA’s supply chain are valued at € 37 million or 26% of the total E P&L. More than any other impact these costs are concentrated in Tier 4 with just 1% arising in PUMA’s operations and Tiers 1-3. Because leather is used extensively in footwear – PUMA’s dominant business line – and it is the most land extensive raw material that PUMA sources, the use of leather is the greatest single factor contributing to impacts on land-use. As a result, footwear accounts for € 34 million or 91% of the overall land-use impact.

Air Pollutants

The environmental damage caused by air pollution (particulates, ammonia, sulphur dioxide, nitrogen oxide, Volatile Organic Compounds (VOCs) and carbon monoxide) amounts to € 11 million, representing 7% of the E P&L total. Tier 4 is responsible for the lion’s share of the air pollution impact, valued at just over € 4 million. The single most significant contributor to this impact is ammonia emissions from animal waste and fertilisers used in agricultural processes.

Waste

The environmental impact caused by waste generation (landfill and incineration) is valued at € 3 million, representing 2% of the total PUMA E P&L. More than half of this derives from Tier 1 with some 21,000 tonnes of waste, followed by Tier 2 suppliers with some 8,000 tonnes and PUMA Operations with some 6,000 tonnes of waste. The vast majority of PUMA’s overall waste is produced in Asia / Pacific where most of PUMA’s suppliers are located.

Dr. Richard Mattison, Chief Executive Officer, Trucost said: “The current era of volatile resource prices, growing consumer and investor interest and greater regulatory standards mean that environmental issues are increasingly core to the business strategy. Water supplies, access to raw materials, a stable climate and clean air are vital to business operations, but many companies struggle to assess these issues due to their long and intricate supply chains. The Environmental Profit and Loss Account approach provides a robust framework to help companies unlock this complex challenge and embed sustainability at the heart of business decision making. PUMA has demonstrated that accounting for the environment is no longer a ‘holy grail’ objective, but simply makes good business sense.”

Responses to the PUMA 2010 Environmental Profit and Loss Account

The PUMA E P&L findings from 2010 have revealed that the lion share of PUMA’s environmental impact occurs within its supply chain of external partners, which the company has limited control over. In order to reduce the environmental impact at the lower end of the supply chain, PUMA is dependent on the cooperation of other industry players. To tackle this issue, PUMA has already started to gain support from national governments, environmental organizations, and representatives of science and industry to push for a shift in the current business paradigm towards a more sustainable approach; one that acknowledges the indispensible services provided by healthy ecosystems and respects their limits. The first step to achieving this change requires the services to be given monetary values in order to account for them when doing business.

At the same time, PUMA has started to implement solutions at its Tier 1 suppliers and within its own operations, where the company is able to provide support for change, independently.

Jochen Zeitz commented: “Reducing the environmental impacts that derive from PUMA’s supply chain represents a real challenge for us, as we have limited control over these activities and on further Tiers, suppliers can be shared by thousands of companies. However, we recognise that in order to make a real change we, along with our industry peers, have to work responsibly to help reduce the impacts of external supplier factories and raw material producers. In addition to driving innovation in various areas along our own supply chain and with our consumers, we also need the support of policy makers and the engagement of the whole industry to implement a new model for businesses that works with nature rather than against it and ultimately supports social and economic sustainability.”

Raising Awareness Among National Governments, the Industry and Science

The release of the initial E P&L results in May generated extensive media coverage and attained significant interest among governments, industry peers and international organizations.

Having been nominated as a co-opted member of the German Council for Sustainable Development, which advises the German government on sustainability issues, Jochen Zeitz presented the results and benefits of the PUMA E P&L to 15 Council members and a representative of the Federal Government last month. As a result, the council will launch a project that aims at implementing standards for PUMA’s environmental accounting statement and will promote the E P&L approach as an innovative practice in public debates.

The UK government featured PUMA’s groundbreaking analysis as a best practices case study for sustainable business in the Department for Environment, Food and Rural Affair (DEFRA) Natural Environment White Paper in June 2011. White papers are documents produced by the UK government setting out details of future policy on a particular subject, often forming the basis for legislative reform.

Also, the Co-Chair of the Investment Commission and Treasurer for the UN Environment Programme Financial Initiatives referred to the PUMA E P&L when speaking at the 2011 UNEP Financial Initiatives Global Roundtable in Washington last month. Further references have been made by sustainability experts Pavan Sukhdev6 and John Elkington7, the Harvard Business Review8, the Stanford Social Innovation Review9 and the World Business Council for Sustainable Development to name but a few.

Stepping up internal Resources at PPR and PUMA

In support of these findings, PPR and PUMA have stepped up their internal resources, hiring additional staff on a group level as well as within the PUMA.Safe team in order to address the challenge of reducing the environmental impact. On a corporate level, PPR is adding an Energy Management Specialist to its sustainability team, who will immediately begin to investigate opportunities for reducing Greenhouse Gas emissions. PPR has also hired a Conservation and Ecosystem Services Specialist who will be investigating the development of broadly-accepted definitions of sustainable cotton and rubber and internal standards for their sourcing.

To better target and focus its efforts, the PUMA.Safe team, which ensures that supplier factories adhere to PUMA’s social and environmental standards, has created both a Humanity and an Ecology team. Five additional environmental and social auditors will be joining the existing 13 employees in the PUMA.Safe team, so that environmental impacts at PUMA’s Tier 1 and Tier 2 suppliers can be better addressed and solutions for their reduction more rapidly developed. PUMA is also hiring a Chemical Engineer to look at solutions to identify more sustainable materials as well as supporting PUMA in phasing out harmful substances within the supply chain.

Developing synergies and partnerships

PUMA and PPR HOME have shared the results of the E P&L with other industry players and corporations to leverage adopting a new business model that takes the costs of using natural resources and eco-system services within corporate supply chains into account. Furthermore, PUMA has collected information on the environmental performance of suppliers which can be used to provide benchmarks for supplier performance targets and the sharing of best practice. PPR HOME will also leverage the lessons learned during PPR’s Group EP&L implementation stages in order to provide case studies across the Group’s companies and brands to assist in broader adoption among businesses.

Building Capacity to Penetrate the Supply Chain

PUMA has already stepped up its capacity building programme for its suppliers such as the CONSERV project at apparel and footwear factories in Vietnam. The project, which was launched in cooperation with the German investment and development organization DEG and international capacity building organization Assist Asia, will support the factories of Tier 1, Tier 2 and Tier 3 suppliers to reduce greenhouse gas emissions, secure availability of natural resources and minimize the risks from waste and pollution through the implementation of resource efficiency practices.