PUMA AG announces its consolidated financial results for the 4th Quarter and Financial Year 2004

Highlights Q4:

• Consolidated sales up 20%
• 51.9% strongest gross profit margin in a fourth quarter
• EBT above expectation
• EPS reaches 2.31 € versus 1.51 € in last year’s quarter

Highlights FY 2004:

• Worldwide brand sales exceed € 2 billion for the first time
• Consolidated sales up almost 23% currency adjusted
• Gross profit margin reaches new record at 51.9%
• EBT once again on record level with €371 million
• EPS increases 43% to 16.06 €
  
  

Outlook:

• Management expects new record in sales and further increase in earnings
• Future orders increase by nearly 18% currency adjusted
  
  

In the 2004 financial year, PUMA continued the positive development of previous years and further expanded its position as a desirable Sportlifestyle brand. The financial targets set at the beginning of the year were significantly exceeded. The financial year closed with double-digit growth for the sixth consecutive year. For the first time, worldwide brand sales reached the € 2 billion mark with a currency-adjusted increase of over 21%. Consolidated sales rose 23%. In addition to the strong sales growth, the gross profit margin likewise climbed to a new record high of nearly 52%. Pre-tax profit reached € 371 million, growing faster than sales for the sixth consecutive year. Earnings per share jumped from € 11.26 to € 16.06. At year-end, PUMA’s share was listed at € 202.30. This corresponds to another significant value increase of 45% compared to the end of the previous year.

The Senegal National Team, nicknamed the Lions of Teranga, will debut its new PUMA Cellerator kit and training line in the upcoming friendly match against fellow PUMA team Cameroon, a.k.a the Indomitable Lions, to be played on neutral ground in France on February 9th.

Cellerator, PUMA’s established statement football playing kit and training line, represents the pinnacle performance solution within the brand’s football apparel product offering. All Cellerator apparel takes advantage of PUMA’s AMT (Advanced Movement Technology). This technology incorporates articulated cut lines to reduce friction, ensuring the player has a complete freedom of movement. In addition, the textile and material selection across the range has been tailored to players’ requirements – be it breathability, ventilation, moisture management and, naturally, comfort.

Senegal played its first international game in 1961 and have since successfully qualified for the African Cup of Nations Finals on nine occasions with their best finish in 2002, placing second. Later that year, the Lions of Teranga became the second African team to advance to the World Cup quarterfinals.

The Senegal National Team is currently en route for the 2006 FIFA World Cup facing Togo, Zambia, Congo, Liberia and Mali in Group 1 of the CAF continental qualifications. The teams’ next upcoming World Cup qualifier is a home game against Liberia on March 25th.

The new PUMA store will act as a laboratory or incubator for the brand to experiment with new ideas and infuse the PUMA personality with the design sensibility of experts from various industries. Each collection in the store is created to stand-alone, however, they are being presented as a together under one roof for the first time with the opening of the new store.

“After embarking into the sport-fashion segment in the mid-1990’s, we felt it was time to create a PUMA environment that showcases the inherent design of these products,” said Jochen Zeitz, CEO and Chairman of PUMA AG. “This store is a first in many respects. PUMA is the first to take the sport-fashion concept a step further by creating a multi-branded store environment. The Meatpacking District store will also provide a setting to connect directly with a cutting edge consumer.”

Two distinctive logos, the jumping cat and the formstrip, typically identify PUMA product to consumers. The existing PUMA Concept Stores utilize the jumping cat branding as its focal point for design direction. In contrast, the PUMA Store Meatpacking District takes its lead for interior design from the brand’s signature formstrip. Intended to highlight the unique aspects of a multitude of collections in an inclusive space, the store also has a black interior that provides a neutral backdrop to focus consumers on the designs of each range. Each of the fixtures in the store is inspired by sport and it is designed to be a place where all of PUMA’s sport-fashion brands can intersect and interact in a unique way. This is shown through new graphics that incorporate the individual logos of all of these collections.

New York, specifically the Meatpacking District, draws the right clientele to support a retail environment dedicated specifically to PUMA’s sport-fashion collections. Known for embracing design and progressive thought, New York is also the center of fashion for the United States. Just as the PUMA Concept Store in New York is the right fit for Broadway in Soho, this new PUMA store is uniquely suited for W 14th Street in the Meatpacking District.

German Chancellor Gerhard Schroeder has joined Pelé and PUMA Chairman and CEO, Jochen Zeitz, at 14:45 CET for a brief statement and photo opportunity to celebrate the German sportswear brand’s renewed partnership with the famed football legend.

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

While the eyes of the world focus on Germany as the host nation of the 2006 football world championships, this partnership is especially poignant for PUMA. This brand initiative will position Pelé as the brand’s football ambassador while PUMA’s active players promote the brand’s technical football range on the pitch.

“I am very pleased to be working with PUMA once again,” said Pelé. “Over the years PUMA has been my brand and it is great to reunite with them so we can create some excitement for the football fans leading into 2006.”

PUMA AG announces its consolidated financial results for the 1st Quarter of 2005

Highlights Q1:

• Global brand sales increase more than 18% currency-neutral
• Consolidated sales grew almost 14% (currency-neutral)
• Gross profit margin on highest level in company’s history at 53.4%
• EBIT margin increases to 26.5%
• EPS improves by 13.5% from €5.00 to €5.68

Outlook 2005:

• Future orders once again increase by more than 6% currency-neutral and reach €812 million
• Management reaffirms sales and earnings expectations for 2005

Sales and Earnings Development January through March 2005

Global brand sales up over 18%

PUMA’s worldwide branded sales, which include consolidated and license sales, rose 18.1% currency-neutral or, in Euro by 16.3% to €639 million. Footwear sales improved by 13.3% (in Euro 11.5%) to €376 million, Apparel by 21.5% (19.7%) to €211 million and Accessories by a strong 46.9% (45.1%) to €52 million.

Consolidated sales almost 14% above last year

Consolidated sales increased for the 25th consecutive quarter and continued with another double-digit growth of 13.7% currency-neutral in Q1. In Euro, this means an increase of 11.9% to €497 million. Sales in the largest segment, Footwear, were up 12.1% (in Euro 10.6%) to €338 million and Apparel by 12.4% (11.2%) to €124 million. Accessories realized the strongest growth rate with 32.5% (30.1%) and sales climbed to €35 million. All regions contributed positively to this performance.

Mayfair is an asset management company that manages the investments of Günter and Daniela Herz and their families. The company invests in property, financial and business assets.

Jochen Zeitz, CEO of PUMA AG: “We welcome Mayfair as a new shareholder and also welcome the investment in the company, particularly in view of PUMA’s strategic plans as part of Phase IV of the long-term development of the company.”

PUMA will make its announcement on Phase IV of the strategic development of the brand and the company as scheduled in the last week of July.

“With the borders of the European Union shifting eastward, Poland’s position as a key market is further underlined,” said Jochen Zeitz, PUMA CEO and Chairman, attending a press conference in Warsaw. Confirming the strategic importance of the continued collaboration he added, “PUMA has successfully established itself in this important market, and in doing so the partnership with the Polish FA has been a major contributor. Both parties have a strong heritage in football, but more importantly they have their eyes set on what promises to be an exciting future.”

Michal Listkiewicz, President of the Polish Football Association: “We are very pleased to have extended the co-operation with a global brand of PUMA’s magnitude. The Polish FA has a proud international record and so does PUMA. As such, it feels very reassuring to work with a partner that shares our ambition concerning the future of Polish football.”

The Polish National Team endorses the PUMA Cellerator line – the brand’s established statement football concept in footwear, apparel and equipment. All Cellerator apparel takes advantage of PUMA’s AMT (Advanced Movement Technology), which incorporates articulated cut lines to reduce friction, ensuring the player has a complete freedom of movement. In addition, the textile and material selection across the range has been tailored to players’ requirements – be it breathability, ventilation, moisture management and, naturally, comfort. The FIFA approved Cellerator ball introduces the revolutionary Dimple II CW System developed and designed to boost speed and distance with controlled trajectory.

Poland, whose honors include an Olympic Games’ title (1972), an Olympic silver medal (1976) and two FIFA World Cup third place finishes (1974 and 1982), is currently in second place of their 2006 FIFA World Cup qualification campaign, facing Austria, Azerbaijan, England, Wales and Northern Ireland in Group 6.

Samoa Rugby Union Chairman, Tuilaepa Sailele Malielegaoi stated, “the Samoa Rugby Union is very excited about the relationship with PUMA.” He went on to say, “At this critical point in the rebuilding of our national rugby team we believe that PUMA’s innovative success with other sporting teams will also lead us to further success on the field and at the next Rugby World Cup.”

Samoa is considered one of the most fertile breeding grounds for rugby talent in the world; players of Samoan descent are currently on the roster of elite clubs and National teams in Australia and New Zealand. With a proud heritage in the game, Manu Samoa has firmly emerged on the professional rugby scene as a strong competitor with a combination of fast paced, powerful, dynamic play and flair.

After winning the 1993 Hong Kong Sevens, Samoa went on to success in the 1995 Rugby World Cup (RWC) in South Africa, where they reached the quarterfinals with wins over Argentina and Italy. At the 1999 RWC the team delivered a decisive and shocking victory over the host nation of Wales. Samoa went on to nearly defeat England, the eventual champions in 2003 at the RWC to secure a place in the finals. Looking ahead to the 2007 RWC, Manu Samoa will be major contenders and the team to watch.

The new agreement commences on October 15th, 2005 and includes all on field, sideline, training and representation apparel, as well as a selection of lifestyle offerings. Manu Samoa will debut their new PUMA kit at the Northern Hemisphere tour, which is scheduled to commence in November 2005.

“We are very excited to be working with the Moroccan Association”, says Jochen Zeitz, Chairman and CEO of PUMA AG. “PUMA has been strongly connected with athletics for many years. By adding the Moroccan Association to our athletics roster it furthers the brand’s positioning in this category and strengthens PUMA’s position as one of the leading suppliers in athletics.”

“We appreciate our new apparel supplier PUMA and are glad to cooperate with the company”, added Aziz Daouda, Technical Director of the Moroccan National Athletic Association. “Especially our common aim of engagement concerning youth training and our combined participation in the Olympic Games in Beijing 2008, which is of great importance to the Moroccan Association.”

During the last few years the Moroccan Athletic Association has enhanced its athletics development program and now possesses a successful international team. One of Morocco’s many outstanding athletes is the 27 year-old Hasna Benhassi who won the 1500m gold medal at the 2001 indoor championships in Lisbon and the 800m silver medal in the 2004 Athens Olympics.

Alongside the Moroccan Athletic Association, PUMA is also the official apparel supplier for the Swedish and Jamaican Athletic Associations.

In addition PUMA is in the process of setting up a fully owned subsidiary in the Middle East, located in Dubai, which will serve as a hub coordinating our efforts across the region. PUMA Middle East should be operative and consolidating sales as of January of next year for most countries in the region.

Jochen Zeitz, CEO and Chairman of PUMA AG: “We see significant potential for PUMA in India in the long run which we intend to fully explore in the early years of the market’s development. We thank Planet Sports for their work as a licensee for PUMA and look forward to jointly enhancing our retail structure with them in the future. Our new Middle East Hub will provide us with a platform to better coordinate as well as grow our business in the entire Middle East region.”

Jochen Zeitz, CEO and Chairman of PUMA AG: “Starlike has been very successful in delivering strong growth over the past few years while substantially increasing PUMA’s desirability and establishing us as a top 3 player in the market. With this mutually beneficial joint venture we will build on this strong position to further maximize the PUMA brand potential.”

Michael Lin, Chairman of Starlike: “Starlike is excited to start the new partnership with PUMA. With PUMA’s global strength and Starlike’s dynamic performance, we believe the combination will lead us to a great triumph in the future.