As the COO, Koehler will be in charge of the functions Operations as well as Supply Chain Management, Logistics and IT. With this organizational change PUMA will streamline the organization within its Transformation program and integrate the responsibilities of the former Chief Supply Chain Officer into his resort.

“I am pleased that Andy Koehler will be joining PUMA as Chief Operating Officer, an important step in rebuilding and establishing a strong and effective senior management team under the leadership of PUMA’s future CEO Björn Gulden”, said Jean-Francois Palus, Chairman of the Administrative Board of PUMA SE. “Andy Koehler brings international and industry experience in sourcing and supply chain management necessary to manage PUMA’s operations through the company’s Transformation period and consequently its next phase of growth.”

“I am excited to be a member of PUMA’s top management team contributing in supporting the company and brand strategy within its Transformation program and beyond”, said Andy Koehler, Chief Operating Officer of PUMA. “PUMA has an enormous potential to tap both the sports performance and lifestyle markets with its design and innovation power as well as its unique brand heritage and I am eager to support reaching the business and growth targets within the next stage of the company’s development.”

Andy Koehler has a broad international experience in various industries such as the sporting goods, automotive Tier 1 industries and consumer goods. Before joining PUMA, he was Managing Director Hong Kong and Head of Global Sourcing at adidas Group, where he led the global sourcing activities across all product categories for adidas, Reebok, Taylormade and others. From 2004 to 2008 he held the position as Vice President Purchasing at automotive and Industrial products company Johnson Controls Automotive and was member of the leadership team responsible for Europe, South Africa and South America.

Andy Koehler graduated at the University of Karlsruhe with a Masters in Business Administration and Engineering. He will be based at the PUMAVision Headquarters in Herzogenaurach, Germany.

• Consolidated sales fall by 2.3% currency adjusted to € 782 million
• EPS reduced from € 4.92 to € 3.36
• Transformation and Cost Reduction Program on track
• New Chief Executive Officer Björn Gulden appointed
• PUMA partner Borussia Dortmund reaches Champions League final

Michael Laemmermann, Chief Financial Officer of PUMA SE: “In the current challenging business climate, especially in Europe and in Asia, we are continuing to implement our Transformation and Cost Reduction Program aimed at improving efficiencies and our cost base. This will increase PUMA’s profitability in the long-term. Confirming our increased focus on Performance, PUMA’s visibility and credibility as a premium football brand have been further enhanced with Borussia Dortmund’s progress to the Champions League final.”

BUSINESS CLIMATE IN EUROPE REMAINS CHALLENGING

Sportlifestyle company PUMA recorded a decline in first quarter sales as Eurozone retail spending continued to weaken and sales in Asia were affected by an unusually long winter. Sales fell by 2.3% in currency adjusted terms to € 782 million when compared to the first quarter of 2012.

PUMA’s sales in the Americas improved by 1.8% currency adjusted to € 260 million. There were strong performances in Mexico and Brazil, where Teamsport was bolstered by Rio de Janeiro soccer club Botafogo, and Argentina, where Lifestyle collections are resonating well. Our Cobra PUMA Golf division continues to deliver outstanding results, which is also reflected in rising sales in North America.

Sales in the EMEA region were impacted in particular by the softening in retail spending, exacerbated be the unusually long winter, and fell by 4.8% currency adjusted to € 348 million.

Strong performances in Russia, Turkey and the D-A-CH region, where classic footwear models such as the Suede and new Motorsport apparel lines resonated well, could not completely offset weak performances in Italy and France. Steadfastly high levels of unemployment in the southern regions of the Eurozone added to the difficult retail environment.

In the Asia/Pacific region, sales declined by 2.9% currency adjusted to € 173 million. India, supported by excellent sales in Running and Teamsports, and Australia delivered positive performances which could not quite offset the less satisfactory numbers from Japan, where there was an unusually harsh winter, and China, where Fitness & Training products in particular did not perform as expected.

SATISFYING RETAIL PERFORMANCE

PUMA’s Retail sales increased by 13.9% currency adjusted to € 135 million, representing a 17.3% share of total sales. This rise in sales was supported by excellent results from our e-commerce business, particularly in North America.
 

LACK OF SPORTING EVENTS IMPACTS FOOTWEAR SALES; MOBIUM ON THE RISE

In the first quarter of 2013, Accessories performed exceptionally well during the first three months of 2013, rising by 11.9% currency adjusted to € 152 million. This outstanding performance was once again led by Cobra PUMA Golf and our North American joint venture for socks and bodywear.

Apparel sales declined modestly in the first quarter by 1.1% currency adjusted to € 256 million. Although Fundamentals were lower, Cobra PUMA Golf and Running continued to perform well. In Teamsport, the spotlight remains firmly on our most successful team, Borussia Dortmund, whose journey to this season’s Champions League final at the end of May has captured the imagination of football fans around the world underlining PUMA’s position as a premium football brand.

PUMA has also recently successfully introduced its ISPO award winning PUMA ACTV and RCVR performance apparel. By fusing compression technology with inbuilt athletic taping, ACTV and RCVR apparel increase the body’s performance and improve its recovery times, taking this category to the next level.

Footwear sales declined by 7.8% currency adjusted to € 373 million. The decline was caused in part by the Teamsport category, which did not perform as well in a non-event year, and Training & Fitness was impacted by the shrinking demand for toning products. In Lifestyle PUMA’s new range of Suede and Archive Lite Models were very well received, with our Future Suede Lite and TX-3 shoes resonating extremely well with consumers in the Asia/Pacific region.

Following the launch of “The Nature of Performance” brand platform to revitalize our Performance categories, PUMA Running was invigorated by our new Adaptive Running shoe, the PUMA Mobium Elite. The Mobium Elite is delivering encouraging sell-through in many markets, including the United States and Asia/Pacific region.

TRANSFORMATION PROGRAM BEING IMPLEMENTED ACCORDING TO PLAN

The implementation of PUMA’s Transformation Program continued during the first quarter. The set up of PUMA’s new Business Unit, supported by our Performance and Lifestyle pillars, is now complete and the evolution to a market and consumer focused organization continues. Each of PUMA’s six Business Units will be managed by one fully accountable Business Unit General Manager. Each team is wholly situated at one location to be able to react faster to consumer trends and optimize each team’s efforts. PUMA’s European consolidation of 23 countries into 7 areas is also on track, with our D-A-CH and Iberia areas now established. In retail, 45 underperforming stores were closed by the end of the first quarter.

PUMA will continue to execute on all of the measures set out under the Transformation and Cost Reduction Program in 2012 in order to benefit the Company in both the mid- and long-term.
 

GROSS PROFIT MARGIN SOFTENS TO 49.1%

PUMA’s gross profit margin fell from 51.2% to 49.1% year on year. Pressure on the gross profit margin in the first quarter came in the most part from two sources: Substantial currency headwinds due to the negative hedging position in the first quarter of 2013 compared to the same period last year, and also continued inventory management with a particular focus on Footwear, combined with higher input costs. As a consequence, Footwear margins dropped from 49.5% to 46.1% and Apparel retreated from 53.5% to 51.5%, while Accessories improved from 51.9% to 52.6%.

OPEX DECREASE AS A RESULT OF THE TRANSFORMATION AND COST REDUCTION PROGRAM

The broad approach undertaken to reduce costs by PUMA under both programs enabled the Company to reduce operating expenditure in nearly all areas, resulting in a decrease in OPEX of 3.9% to € 310 million.

OPERATING RESULT (EBIT) IMPACTED BY DROP IN GROSS PROFIT MARGIN

Despite the cost savings achieved by the measures undertaken under the Cost Reduction Program, operating profit declined in the first three months of 2013 from € 102 million to € 79 million due to the decline in sales and gross profit margin. As a consequence, the EBIT ratio decreased from 12.4% last year to 10.1% this year.

FINANCIAL RESULT DECLINES

The financial result declined from € 1.1 million to € -4.0 million in the first quarter, due mainly to negative currency conversion impacts.

EARNINGS BEFORE TAXES (EBT) RETREAT

PUMA’s EBT for the first quarter declined to € 75 million in 2013 compared to € 103 million in 2012, representing 9.6% of sales compared to 12.6% for the same period last year. Consequently, tax expenses abated from € 28 million to € 22 million, representing a tax rate of 29.3% versus 27.1% for the first quarter of 2012.

NET EARNINGS SOFTEN

Consolidated net earnings dropped by 32.0% from € 74 million to € 50 million. Earnings per share therefore also fell back from € 4.92 in 2012 to € 3.36 in the first quarter of 2013.
 

EQUITY CONTINUES TO STRENGTHEN

PUMA’s equity base continued to strengthen, with the equity ratio moving up slightly from 66.4% to 66.7% compared to the first quarter of 2012. Shareholder’s equity is now equivalent to € 1,676 million, up from € 1,652 million.

WORKING CAPITAL INCREASES

PUMA’s overall Working Capital increased by 7.0% to € 775 million due to the reduction of working capital related liabilities. A continued strong emphasis on inventory management resulted in almost flat stock levels at € 592 million. Trade receivables declined by 4.3% to € 594 million, due to the lower revenues in the quarter.

CASHFLOW / CAPEX

The Free Cashflow improved from € -200 million last year to € -154 million this year due to lower payments for acquisitions in spite of the decline in earnings before tax.

Capex declined from € 14 million to € 9 million, which was mainly invested in the opening and refitting of selected retail stores as well as office and IT equipment.

CASH POSITION IMPROVED

PUMA’s net cash position improved slightly from € 203 million to € 207 million at the end of the first quarter.
 

NEW CHIEF EXECUTIVE OFFICER APPOINTED

PUMA SE’s Administrative Board appointed Björn Gulden as PUMA’s new Chief Executive Officer (CEO), effective 1 July 2013. Björn brings to PUMA an extensive international experience of nearly 20 years in the sporting goods and footwear industry, where he has held a variety of senior management positions.

In view of PUMA’s first quarter results and of continuing economic uncertainty in certain key markets, Management now expects a low- to mid-single-digit decline in currency-adjusted full-year net sales. This forecast represents a slight downward revision compared to the guidance provided with the 2012 full-year results.

Management reiterates its expectations for continued pressure on the gross profit margin. Under these circumstances, PUMA is also unlikely to meet its original guidance of low- to mid-single-digit growth in EBIT before special items. However, PUMA’s Management confirms that it expects net earnings to increase compared to the 2012 level.

Photo Credits: Conné/ PUMA

Björn Gulden brings to PUMA an extensive international experience of nearly 20 years in the sporting goods and footwear industry, where he held a variety of management positions. He has been CEO of Danish jewellery brand Pandora since the beginning of 2012. From 2000 to 2011, the Norwegian native was Managing Director of Europe’s largest footwear retailer, Deichmann, where he also headed the US-subsidiaries Rack Room Shoes and Off Broadway Shoes as CEO and President. Prior to 2000, he held several management positions at outdoor apparel company Helly Hansen and sporting goods firm Adidas, where he was Senior Vice President of Apparel and Accessories.

“With Björn Gulden, we are pleased to have an experienced sports industry expert with proven leadership quality and know-how in managing sports and footwear brands taking up the reins of PUMA,” said Jean-François Palus, Chairman of the PUMA Administrative Board and Group Managing Director of Kering, PUMA’s majority shareholder. “I am absolutely convinced that Björn Gulden is the perfect fit to lead PUMA through its continuing restructuring and transformation program on its mission to become the most desirable and sustainable Sportlifestyle company in the world.”

Björn Gulden, new CEO of PUMA said: “I am honoured and look forward to taking on the position as CEO of PUMA, one of the industry’s most exciting and powerful brands. PUMA enjoys an enormous potential – both in the Performance and in the Lifestyle markets, and I am eager to help unlock this potential and further grow the company in the years to come.”

The former football professional who played among others for German Bundesliga club 1. FC Nürnberg studied Business Administration in Norway and obtained an MBA from Babson Graduate School of Business in Boston. Fluent in Norwegian, English and German, he will be based at PUMA’s headquarters in Herzogenaurach, Germany.

Photo Credits: Christoph Maderer/ PUMA

• PUMA’s consolidated sales climb by 11.7% in Euro terms to € 804.7 million.
• Gross profit margin declines to 44.6% due to inventory clearance.
• EBIT before special items falls slightly to € 42.8 million.
• Special items of € 98.2 million booked in the quarter.
• Net earnings come in at € -42.6 million, impacted by special items.

• PUMA’s full year consolidated sales rise by 8.7% in Euro terms to just under € 3.3 billion.
• Gross profit margin abates to 48.3%.
• EBIT before special items softens by 12.8% to € 290.7 million.
• Special items of € 177.5 million caused by Transformation and Cost Reduction Program, Spain Arbitration and restructuring of businesses in Greece, Cyprus and Bulgaria.
• EBIT including special items totals € 113.2 million.
• EPS amount to € 4.69 after € 15.36 last year.
   

• Transition Period defined within our strategy extended into 2013
• Launch of “The Nature of Performance” brand platform and new product innovations to revitalize Performance categories
• Management expects 2013 sales unchanged from the 2012 level
• Management envisages an increase in EBIT before special items of low- to mid-single digits and a significant improvement of net earnings

“Despite a continuously challenging market environment, particularly in Europe, PUMA delivered a strong sales performance in the fourth quarter, enabling us to meet our sales projections for the full year of 2012,” said Franz Koch, CEO of PUMA SE. “We have completed defining the scope of PUMA’s Transformation and Cost Reduction Program, and will continue with the implementation of all measures throughout 2013 to improve the company’s profitability. I want to reiterate that it is not our priority to push for sales growth at any cost, but instead focus on improving desirability for the PUMA brand.”
 

PUMA delivered a strong sales performance in the fourth quarter of 2012. Boosted by double-digit sales growth in Asia and North America, PUMA’s consolidated sales increased by nearly 12% in Euro terms or 8.7% currency adjusted to € 804.7 million from October 1 to December 31. The numbers were supported by the performance of Cobra PUMA Golf, with its products resonating exceptionally well with consumers.

SALES PERFORMANCE BY SEGMENT

All of PUMA’s product segments grew in the fourth quarter of 2012. Footwear was up by 8.6% in Euro terms to € 367.9 million. On the Performance side, PUMA’s Faas footwear family continued to appeal to consumers while the PUMA Suede range fuelled sales in PUMA’s Lifestyle footwear business.

Apparel climbed by 15.2% in Euro terms to € 316.6 million after increasing demand for Fitness & Training gear. Accessories rose by 12.3% in reported terms to € 120.1 million driven by our US joint ventures Janed and Wheat as well as our Cobra PUMA Golf business.

SALES PERFORMANCE BY REGION

While PUMA’s sales increased in all regions, performance in the Asia/Pacific region was exceptionally satisfactory during the fourth quarter. Sales rose by 16.2% to € 246.7 million while PUMA expanded in virtually all markets. Japan and India in particular excelled on the back of demand for evoSPEED Apparel products. Seasonal factors also played a part, with winter collections gaining traction with consumers, especially PUMA branded duffel coats and parka collections in Korea, China and Japan.

PUMA was also able to reverse the slight declines from previous quarters in the EMEA region, with sales rising by 7.0% in Euro terms to € 253.4 million. This performance was supported by strong growth in Germany, Sweden and Switzerland delivering satisfying growth rates. PUMA’s Lifestyle footwear ranges sold well, especially the PUMA Suede in developed countries as well as our Motorsport collections in emerging markets.

In the Americas, PUMA continued to increase sales at a favorable rate, improving by 12.2% in reported terms to € 304.5 million. This growth was driven mainly by the Cobra PUMA Golf business as well as by undiminished demand for Fitness, Lifestyle and Motorsport products.

SALES PERFORMANCE RETAIL

PUMA’s retail business increased by a significant 23.0%, with the company operating 60 additional stores when compared to the fourth quarter of last year. As in the three previous quarters, our comparable store sales developed positively, while E-commerce sales rose by 23.4% over the same period.

MARGIN, EXPENSES AND PROFITABILITY

PUMA’s fourth quarter gross profit margin declined from 46.7% to 44.6%. The Footwear margin fell sharply from 46.6% to 41.8%, due to inventory clearances during the quarter and unfavorable hedging rates as well as a shift in the regional mix. The gross profit margin for Apparel, however, improved from 45.9% to 46.6% and Accessories declined from 49.0% to 48.0%.

Operating expenses in the fourth quarter continued to rise, by 10.0% from € 292.3 million to € 321.5 million. This was equivalent to 40.0% of sales and an OPEX ratio improvement from 40.6% in 2011. The absolute increase in operating expenses is mostly attributable to higher marketing and retail expenses on the back of our increased retail portfolio as well as continuing IT and supply chain infrastructure improvements.

The EBIT before special items fell by 11.2% to € 42.8 million in the fourth quarter from last year’s € 48.1 million and also as a percentage of sales, from 6.7% to 5.3%.

In addition to the special items of € 79.3 million reported in the third quarter, PUMA recorded a further € 98.2 million in special items for the last three months of 2012. These additional items consist of the arbitral award in December related to the trademark rights in Spain, the restructuring of our distribution set-up and the closure of our subsidiaries in Greece, Cyprus and Bulgaria, as well as the streamlining of our product and endorsement portfolio.

The fourth quarter financial result further improved from € -8.9 million to neutral, largely as a result of a decline of foreign exchange impacts.

EBT in the fourth quarter fell from € 39.3 million to € -55.4 million. Net earnings consequently also declined from € 33.1 million to a loss of € -42.6 million in the quarter and Earnings per share followed suit, reduced from € 2.21 to € -2.85. These drops all stem from the special items booked in the quarter.

2012 was an exceptional year for PUMA in many ways. The Football Euro Cup in June, the conclusion of PUMA’s second Volvo Ocean Race in July and the Summer Olympics in August turned 2012 into a year full of major sports highlights. These events provided the perfect platform for PUMA to generate global brand visibility and desirability.

In terms of product, 2013 will be a pioneering year for PUMA, as the company re-energizes its Performance positioning through the introduction of a new cross-category brand platform: The Nature of Performance. The Nature of Performance unifies all of PUMA’s performance categories with a consistent voice, look and feel and serves as the inspiration for a collection of innovative new products in the Football, Running, Training, Fitness and Golf categories.

PUMA’s management began to implement the company’s Transformation and Cost Reduction Program throughout the second half of 2012, laying the groundwork for substantial financial improvements going forward. The program entails the set up of a new business model in Europe by reducing the number of reporting entities from 23 countries to seven areas as well as a strong European management paradigm. The areas DACH (Germany, Austria, Switzerland), IBERIA (Spain, Portugal), UKIB (UK, Ireland and Benelux), SCANDINAVIA (Denmark, Finland, Norway, Sweden), EASTERN EUROPE (Estonia, Latvia, Lithuania, Poland and Slovakia, Czech Republic, Hungary), FRANCE and ITALY have all been implemented.

The Transformation and Cost Reduction Program includes the closure of approximately 90 unprofitable stores, mostly in established markets, which has also begun. However, PUMA will continue to open new stores in selected profitable locations throughout 2013, primarily in emerging markets. PUMA expects to be operating 540 stores at the end of 2013 compared with 590 stores at the end of 2012.

PUMA has also assessed its sponsorship portfolio and terminated endorsement contracts that are either unprofitable or are no longer part of PUMA’s core categories going forward. Within this context, PUMA has decided to focus its activities in the Sailing category on endorsing the America’s Cup and ORACLE TEAM USA for 2013. Beyond 2013, PUMA will cease the production of Sailing products, and focus instead on its Outdoor business, for which Sailing has served as the perfect springboard. PUMA has also decided to exit all European Rugby activities, including the endorsement of the Irish Rugby Football Union beyond the 2013/14 season.

FULL YEAR SALES INCREASE TO ALMOST € 3.3 BILLION

Consolidated sales for the Full Year climbed 8.7% in Euro terms or 4.6% currency adjusted to € 3,270.7 million. With this record result, PUMA achieved its sales target for the full year.

SALES PERFORMANCE BY REGION

While sales in EMEA softened by 0.8% in Euro terms to € 1.3 billion due to a weaker performance in Western Europe, there were strong performances in Germany, Russia and Turkey in 2012. The Americas delivered a satisfying performance, including North America, Mexico and Argentina, increasing in Euro terms by 16.6% to € 1.13 billion. Asia/Pacific was equally strong, rising by 15.3% to € 841.7 million, supported by good numbers in Japan and India in particular.

SALES PERFORMANCE BY SEGMENT

In terms of segments, Footwear grew 3.6% in Euro terms to € 1.6 billion. Apparel rose by 11.2% to € 1.15 billion, while Accessories posted an impressive 20.7% increase to € 523.6 million also bolstered by consolidation effects of the new joint ventures.

RETAIL SALES CLIMB BY € 109.0 MILLION

Sales in our owned and operated retail outlets rose by 21.2% in 2012 to € 623.9 million, an increase of € 109.0 million from 2011. This is due in part to the expansion of our retail base compared to the end of 2011. As a percentage of total turnover, retail sales rose from 17.9% to 19.1%. E-commerce also posted a gain, up 16.5% for the year.

GROSS PROFIT MARGIN EASES TO 48.3%

For the full year, PUMA’s gross profit margin moved down from 49.6% to 48.3% in 2012. This was due to a combination of factors, most notably inventory clearance, the regional mix and also continued input cost pressure in the form of wage inflation in the Far East. The Footwear margin declined from 49.1% to 46.5%. Apparel rose slightly, from 49.6% to 49.8% whereas Accessories fell, from 51.6% to 50.5%.

OPERATING EXPENSES

PUMA’s full year operating expenses rose by 11.0% in 2012, from € 1,177.8 million to € 1,307.5 million, slightly ahead of and equal to 40.0% of sales. Marketing and Retail rose by 10.7% to € 609.3 million, and also slightly as a percentage of sales to 18.6% after 18.3% last year, caused by supporting a double event year and the increasing number of stores operated by PUMA. Other Selling Expenses rose 11.4% to € 431.1 million. Similarly, Research, Design and Development costs rose 10.3% to € 84.9 million as PUMA continues to emphasize its product pipeline. General and Administrative Expenses were up 5.0% to € 205.0 million. Despite this, the expense ratio declined from 6.5% to 6.3% in 2012 due to cost saving measures. The Company reported other operating income of € 22.9 million compared to € 32.2 million in 2011.

EARNINGS BEFORE SPECIAL ITEMS

EBIT before special items declined 12.8% to € 290.7 million as a result of higher costs and lower than expected margins. As a percentage of sales this is equal to 8.9% for the year compared to last year’s 11.1%.

SPECIAL ITEMS

PUMA recorded € 124.9 million in special items that are related to the Transformation and Cost Reduction Program. These have been incurred mainly by restructuring the European region, optimizing the retail portfolio, adjusting the product and endorsement portfolio, and reorganizing our global functions and local subsidiaries.

As announced on 20 December 2012, the former Spanish distributor and license holder Estudio 2000 S.A., who owned several PUMA trademark rights in Spain, was obliged to vest these to PUMA in accordance with the award of the arbitration panel. According to this ruling, the transfer of the trademark rights is subject to a one-time payment of € 42.2 million to Estudio 2000 S.A., which led to a one-off expense of € 24.6 million in 2012.

For Greece, Cyprus and Bulgaria, PUMA has appointed Sportswind, a local distributor, to take over PUMA’s business activities in these countries, as PUMA wants to focus its efforts, initiatives and investments on its key strategic markets. The distribution agreement should reduce PUMA’s business risks in these markets substantially while at the same time improve its sales. PUMA will close its own operations in due course in these three markets. The restructuring of the aforementioned distribution and operations resulted in additional one-time costs of € 28.0 million.

OPERATIONAL RESULT AFTER SPECIAL ITEMS

The EBIT after special items for 2012 was € 113.2 million, or 3.5% as a percentage of sales.

The financial result for 2012 improved significantly and was € -0.9 million compared to € -12.8 million in 2011 due to lower foreign exchange impacts in PUMA’s financing activities.

Full year EBT was therefore € 112.3 million, or 3.4% of sales, while the tax ratio remained stable at 28.9%.

As a result of our Transformation and Cost Reduction Program in 2012, net earnings for the financial year 2012 were € 70.2 million, compared to € 230.1 million last year and EPS was therefore equal to € 4.69 and down from last year’s € 15.36.

EQUITY

The equity ratio rose from 62.2% to 63.1%, which indicates continued improvement in our capital base, despite the lower net earnings in 2012.

WORKING CAPITAL

PUMA’s overall Working Capital increased by 16.8% to € 623.7 million, due in particular to a decline of working capital related liabilities at the balance sheet date. On the asset side, testament to PUMAs strict management, Inventories rose only slightly, by 2.9% to € 552.5 million and Trade receivables actually decreased despite the rise in sales, down 4.9% to € 507.0 million.

CASHFLOW / CAPEX / CASH POSITION

Free cashflow before acquisitions for the full year improved by 37.1% from € 61.0 million to € 83.5 million in 2012 mainly due to lower tax payments. With regards to our Capex, PUMA’s outgoings increased by 14.1% to € 81.2 million related to store openings and IT investments. Payments for acquisitions more than doubled to € 91.7 million, consisting for the most part of PUMA’s purchase of all outstanding Dobotex shares at the beginning of the year. As a consequence, the net cash position decreased by 12.1% to € 363.2 million.

DIVIDEND

The Administrative Board will propose at the Annual General Meeting on May 7, 2013, that a dividend of € 0.50 per share (€ 2.00 in the previous year) be paid for the financial year 2012. This is a result of the reduced earnings caused by the special items undertaken under the Transformation and Cost Reduction Program, the restructuring of the distribution in southern east European countries and the Arbitration ruling in Spain.

SHARE BUYBACK

The company did not buy back any of its own shares throughout the year, including the fourth quarter of 2012. As of the balance sheet date, PUMA owned 143.185 of its own shares, equal to € 32.2 million.

Management expects that PUMA’s sales in 2013 will remain at a level consistent with that of 2012. This is due to the fact that the implementation of the Transformation and Cost Reduction Program will continue throughout 2013, making it a transitional year before PUMA will once again generate desirable, profitable sales growth. However, as PUMA’s Transformation and Cost Reduction Program is geared towards improving the company’s profitability, management envisages an increase in EBIT before special items in the low- to mid-single digits while net earnings should improve significantly.

In line with PUMA’s transformation program and the newly established regional business model, Volfango Bondi will be responsible for optimizing the efficiency of PUMA’s business model in the region Europe. He will be supported by the General Managers of PUMA’s new seven European areas DACH (Germany, Austria and Switzerland), Iberia, UK and Benelux, France, the Nordics, Eastern Europe and Italy who all report directly into him.

Volfango Bondi, who is of Italian citizenship, joined PUMA in 2009 and most recently held the position of Director Global Sales. With more than 20 years of experience in the sporting goods industry, he has a unique understanding of the retail landscape and profound experience in the strategic and operational management of retail businesses. Before joining PUMA, Bondi was in leading sales positions at Nike Italy and Nike Europe.

Photo Credits: Conné/ PUMA