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.

This new partnership, effective from 1 February 2012, will see PUMA benefit from prominent branding locations on all BMW Motorsport racing cars and all Race and Teamwear for BMW Motorsport technical staff. With BMW re-entering the DTM racing class in 2012 following an illustrious history in GT car racing, PUMA will outfit drivers Martin Tomczyk, Bruno Spengler, Andy Priaulx, Augusto Farfus, Dirk Werne and Joey Hand with the latest innovations in fireproof technology.

In 2004, PUMA first partnered with BMW Motorsport, through its involvement with the BMW Williams Formula One team. This relationship continued when BMW acquired Sauber F1 to become BMW Sauber F1, and after BMW ceased its Formula One activities in 2009 to reorganise its activities, PUMA and BMW Motorsport have once again joined forces with this new deal.

PUMA will also develop BMW Motorsport licensed products for global sales and distribution. While existing motorsport markets in Europe are a key focus for this distribution, a strong emphasis will be placed on expanding sales performance of BMW Motorsport products in emerging markets, particularly in Asia Pacific and the Americas.

“It is great to have such a well-known and reliable partner as PUMA on board again at such an exciting time for us,” said BMW Motorsport Director Jens Marquardt. “The link between BMW Motorsport and this successful company has grown over the years and goes as far back as the 2004 season. It is hard to imagine our team and driver apparel without the characteristic PUMA logo. As a strong partner in the field of licensed products, PUMA will play a major role in ensuring that our fans around the world enjoy the products from the BMW Motorsport collections.”

Christian Voigt, Senior Head of Global Sports Marketing at PUMA said: “PUMA is delighted to once again be working with BMW Motorsport, following the successes we enjoyed with them through their tenure in Formula One. Their heritage in competitive motorsport and automotive engineering is so impressive, and their global profile derived from this makes them another strong partner for PUMA in motorsport. Through our experience in licensed product development and distribution we are fully confident this will be a successful partnership for both parties, and we hope to grow it in the years to come.”

Dr. Thomas Goerdt, Head of Lifestyle Collections in the BMW Group, added: “From 2012, BMW will be even more active and prominent in motorsport than it has been in recent years. For this reason, securing this partnership with PUMA was a priority for BMW Lifestyle right from the start. As leading sport lifestyle brand, PUMA boasts a unique wealth of expertise and proficiency in developing and distributing licensed products on a global scale. Bearing in mind the great success we have enjoyed together in the past, we are looking forward to continuing this partnership.”

To reduce waste and keep products out of landfills, the Sportlifestyle company PUMA has installed recycling bins in PUMA Stores and outlets in Germany for customers to return used shoes, clothing and accessories of any brand.

The PUMA “Bring Me Back” program, which is run in cooperation with global recycling company I:CO, aims at encouraging the recycling and re-usability of sportlifestyle products among consumers by providing a convenient and simple process: Consumers bring used shoes, clothing and accessories from any manufacturer to a PUMA Store and deposit them in the designated Bring Me Back bins. The used products are then sent off to be re-used or recycled. This means they are either broken down and re-used to create raw materials, or they will be re-used in case they are still in a suitable condition, or they will be recycled into new products. With this new initiative PUMA helps to protect the environment, aspiring to eliminate waste by recycling used products to create new ones. This effort is one more step forward toward the long-term goal of transitioning to a closed cycle loop for materials usage.
“On our mission to become the most desirable and sustainable Sportlifestyle company in the world, we areconstantly working on solutions that aim at reducing the environmental impact that PUMA as a company leaves behind on our planet,” said Franz Koch, CEO of PUMA. “With our Bring Me Back-Program, we are pleased to target for the first time ever the massive amounts of waste sportlifestyle products leave behind at their end-of-life phase when consumers dispose them and they end up on landfills or in waste incineration plants.”

PUMA has implemented several initiatives and programs within its long-term sustainability program that foresees a reduction of 25% of carbon emissions, energy, water and waste in PUMA offices, stores, warehouses and direct supplier factories by 2015. With the innovative packaging system Clever Little Bag, that PUMA introduced in 2010 and that replaced traditional shoeboxes, the company already reached a milestone in reducing PUMA’s – and its consumers’ – environmental footprint significantly by saving more than 60% of paper and water annually.

In 2011, PUMA published the first-ever Environmental Profit and Loss Account that assessed and valued the environmental impacts of the company’s core operations (PUMA offices, stores and warehouses) and along its entire supply chain of production factories – from the level of raw material production to the final manufacturing of PUMA products. This analysis helped PUMA to determine the impacts that arise from the point of cotton or leather production to the point where PUMA products are sold in a PUMA store. However, a considerable part of PUMA’s environmental footprint comes about through the consumer disposal phase. The Bring Me Back program now addresses PUMA’s impact at that level, reducing the waste generation of sportlifestyle products.

The program furthermore sets the foundation for an initiative on products which are designed for recycling as PUMA is currently looking into solutions to develop recyclable or decompostable products. PUMA’s entire team is also working on achieving the company’s goal of having 50% of the international collections made of more sustainable materials by 2015. In 2011, about 16% of PUMA’s total apparel products were made of more sustainable materials such as recycled polyester, organic cotton and Cotton Made in Africa, proving that the company is right on track to reach this target.

Bring Me Back launches in PUMA Stores and Outlets across Germany from the 17 April 2012. PUMA Stores and Outlets include among others Berlin, Düsseldorf, Munich, Hamburg, Augsburg and Herzogenaurach. The program will roll out to a handful of additional markets in October 2012, with a full global roll-out slated for January 2013.

More information can be obtained on the soon to be launched website www.puma.com/bringmeback.

Notes to the Editors:

I:CO is a global recycling company that works in conjunction with retailers to house collection bins and give consumers a place where they can return old gear and help give valuable resources another life.

For further information and to find the nearest collection bin, visit puma.com/bringmeback (launched soon).

WORLD’S FASTEST MAN INSPIRES FASTEST PERFORMANCE

Products in the ‘Year of Speed’

PUMA is proud to introduce evoSPEED, the groundbreaking performance collection that for the first time in the Sportlifestyle brand’s history, features product offerings for all PUMA sport categories. Inspired by the Usain Bolt – the World’s Fastest Man, the collection answers every athlete’s need for speed by taking performance technology and innovations and incorporating them in footwear and apparel developed for running, football, motorsport, golf, cricket and indoor sports. evoSPEED will be available from 1 June 2012.

Designed under the criteria of “light, flex, and fit”, all evoSPEED footwear features lightweight materials, increased flexibility and an optimized fit that enables a greater freedom of movement without compromising support, to enhance speed. For the first time in PUMA’s history, the classic Formstripe has been changed and a new lightening version, a signature graphic that emphasizes speed and harkens back to Usain Bolt, will be featured on the complete evoSPEED footwear collection.

The evoSPEED styles will be worn by PUMA’s key athletes in running (e.g. Usain Bolt), football (e.g. Sergio Aguero), motorsport (e.g. Fernando Alonso), golf (e.g. Rickie Fowler), cricket (e.g. Yuvraj Singh) and indoor sports (e.g. Luc Abalo) this summer and beyond.

Running

Inspired by the competitive performance spikes that Usain Bolt will be wearing during the 2012 Diamond League and at the Olympic Games in London, the BOLT evoSPEED Runner is a light, breathable and flexible trainer built to enhance speed. Through evoFOAM, a lightweight midsole cushioning, this trainer offers a fast, responsive and smooth ride. The BOLT evoSPEED Runner upper also has a modern and fresh aesthetic, to bring a strong lifestyle appeal to the track.

 

Football

Part of this cross category collection is the evoSPEED 1 FG, which will be worn by PUMA’s top football players including Sergio Aguero, Radamel Falcao and Mario Gomez. The next generation in PUMA’s Speed silo, the evoSPEED 1 FG is one of the lightest boots in the market and is designed to help players achieve top speed. The upper features a soft and ultrathin microfiber material whilst stability is provided by the internal EverFit cage. The anatomically engineered lightweight one-piece outsole provides stability and support, utilising high-tech materials to minimize weight and to maximize its flexibility and reactivity. The evoSPEED 1 FG features an external heel counter which secures an excellent heel fit and the new PUMA evoAptoLast which provides an industry leading fit.

 

Motorsport

The evoSPEED Mid is the newest style in the PUMA Motorsport range, and took its inspiration directly from the Formula 1 race track and the performance of World Class drivers such as Fernando Alonso of the Scuderia Ferrari F1 Racing Team. The shoe features a full EVA comfort midsole, an internal EverFit cage for enhanced fit, and a heel wrap up for better grip. For extra durability, a rubber spray toe-cap has been added. The minimalistic pattern piecing and the asymmetrical lace system showcase the focus on function for this style.

 

Golf

For the golf category, speed is represented with the FAAS Trac evoSPEED. The latest PUMA Golf shoe will be worn by COBRA PUMA GOLF superstar Rickie Fowler at the U.S. Open and other 2012 golf tournaments. As with the other evoSPEED collection styles, the FAAS Trac evoSPEED provides maximum flexibility to enhance a 360° movement as well as very lightweight materials. These light and highly functional materials deliver unmatched protection through extremely durable waterproofing, taped seams and high breathability to shield the athlete from external forces. The outsole combines directionally molded S2Quill spikes with replaceable S2Quill spikes for ultimate grip on the course. The spikes are situated within a stepped outer frame with additional traction elements to provide a stable, supportive platform. The FAAS Trac evoSPEED further provides improved balance, feel and lateral stability.

 

Cricket

The evoSPEED Cricket Spike is one of the lightest Cricket spikes in the market. The upper features a soft and ultrathin material whilst stability is provided by the EverFit cage that is also being used for the football and motorsport evoSPEED Footwear styles. A mesh window gives breathability and the anatomically engineered one-piece outsole provides stability and support.

 

Indoor

An additional part of the evoSPEED collection is the evoSPEED Indoor 1 that will be worn by many international handball players such as Luc Abalo of the French national team. Matching the general evoSPEED criteria, the shoe features very light weight materials, a super flexible outsole and the EverFit cage that offers a perfect fit and support. A mesh tongue further adds breathability whilst the removable perforated sockliners provide additional comfort.

For more information, please visit www.puma.com .

The results of this testing confirmed that the PUMA Italy replica jersey is within all legal regulations and fully meets the standards of PUMA’s own Restricted Substances List. The amounts of nonylphenolethoxylates (NPEOs) found in the product are considerably below PUMA’s own limits laid out in the Restricted Substances List and are therefore not dangerous to health and do not represent any health hazards.

Furthermore, the report by European Consumer Organisation claims that the jersey would contain lead. PUMA’s independent testing did not detect any traces of lead.

The manufacturer of the PUMA Italy replica jersey holds a valid OEKO-TEX 100 Certificate, which indicates full compliance to the strict Oeko-Tex Standard.

PUMA considers product and environmental safety as a core priority of its business practices. Clear standards that follow the strictest local and international regulations and best practice standards for consumer care and safety are specified in the PUMA.Safe Handbook of Environmental Standards  which also includes PUMA’s Restricted Substances List. The company’s quality concept requires all products to be free of environmentally hazardous chemicals or harmful substances as defined by the Restricted Substances List which is updated on a frequent basis to ensure compliance to all relevant legislation and standards.

PUMA is an active member of the “Zero Discharge of Hazardous Chemicals” industry working group and has committed to zero discharge of hazardous chemicals for all products across all pathways in the supply chain by 2020. Alkylphenolethoxylates (APEOs) and NPEOs are similar to soaps and are being used during the dying process.

APEOs and NPEs are one of the eleven priority chemical groups, targeted by the roadmap of the ZDHC industry working group and PUMA has advised its suppliers to convert to APEO/NPE free formulations. For more information and updates on the joint roadmap projects, please visit www.roadmaptozero.com

The Management has therefore decided to speed up as well as significantly expand the scope of the company’s Transformation Program in order to streamline the cost bases and increase efficiencies in terms of organization, processes and systems. PUMA’s Management estimates that these actions will require one-time costs of up to approximately € 100 million, to be booked in the second half-year of 2012.

The Management therefore revises its previous guidance for PUMA’s 2012 net sales growth from a high-single digit to a mid-single digit rate and expects annual Net Earnings to decrease significantly from the € 230.1 million posted last year, impacted by the aforementioned one-off expense.

Further details of PUMA’s business performance during the second quarter and first half year of 2012 will be provided with the results announcement on 26 July 2012.