Herzogenaurach / Boston, June 07, 2006
“THE TRIAL”
The Second Instalment of “WILLKOMMEN ZUM FUSSBALL” the World Cup Advertising Campaign from PUMA® Premiers

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

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

Herzogenaurach, Germany, June 07, 2006
PUMA® honors football great PELÉ
Sharing passion and excitement for football … at PeléStation

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

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

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

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

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

June 15, 2006
PUMA Countdown 2010
PUMA announces aggressive marketing campaign for the upcoming World Cup hosted by South Africa

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

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

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

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

June 20, 2006
PUMA® Athlete Geoff Ogilvy Takes His First Major at the U.S. Open Championships
PUMA® athlete Geoff Ogilvy achieved victory with an impressive win at the U.S. Open Championships

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

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

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

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

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

For more information visit www.puma.com

July 05, 2006
Bob Kennedy Joins the PUMA Team

About Bob

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

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

Accomplishments

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

    Photo Credits: Conné/ PUMA
July 07, 2006
PUMA at the World Cup 2006
Outstanding results and brand visibility leading up to the World Cup final

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

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

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

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

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

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

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

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

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

July 10, 2006
First World Cup Title for PUMA
The Sportlifestyle brand at the Football WC 2006

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

July 27, 2006
PUMA at the EURO 2006
PUMA for the first time one of the main sponsors at the Athletic European Championship 2006 in Gothenburg

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

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

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

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

August 03, 2006
Global brand sales reach almost €1.4 billion, up 16%

PUMA AG announces its consolidated financial results for the 2nd Quarter and First Half-Year of 2006PUMA AG announces its consolidated financial results for the 2nd Quarter and First Half-Year of 2006

Highlights Q2:

  • Outstanding success during World Cup: Not only the most teams but also the World Champion wearing PUMA
  • Consolidated sales increase more than 38%
  • Gross profit margin above 51%
  • EBIT margin impacted as expected by strong brand investments
  • EPS at €3.12 versus €3.64

 

Highlights First Half-Year:

  • Global brand sales reach almost €1.4 billion, up 16%
  • Consolidated sales up more than 33%
  • Gross profit margin at 52%
  • EBIT margin better than expectations at 17%
  • EPS at €8.95 compared to €9.32

Outlook 2006:

  • Despite strong sales growth, orders remain on high level, up 35% currency adjusted
  • Management confirms full-year guidance with top line growth up to 35% and EBIT level of about €360 million

 

Outstanding success during World Cup

For the first time in the company history, a PUMA sponsored national team has won the World Cup Final: The Squadra Azzurri from Italy.
PUMA was the dominant kit supplier at the championships, with a strong portfolio of 12 teams and gained brand visibility throughout 56% of all games on the pitch. PUMA was also among the top three brands in terms of player presence on the field, with 18% of all players wearing the innovative v1.06 product line. PUMA now has a great starting position with regards to the Euro 2008 in Switzerland and Austria, where both host federations are sponsored by PUMA. Looking ahead to the World Cup 2010 in South Africa, PUMA will continue as the dominant brand in African Football and will enter the tournament with Italy as the reigning champion and tournament favourite.

Sales and Earnings Development

Global branded sales up 16% reaching almost €1.4 billion in six months PUMA’s branded sales, which include consolidated sales and licensee sales, reached €620 million during Q2, thus marking a 17.1% (currency adjusted 17.2%) increase over last year.
During the first six months, branded sales grew 16.1% (currency adjusted 14.3%) to €1,356 million. Footwear sales increased 13.9% (12.1%) to €770 million, Apparel improved by 19.2% (18.2%) to €469 million and Accessories rose by 18.9% (18.8%) to €118 million.

Consolidated sales rise more than 38% in Q2 and 33% in first six months

In Q2, consolidated sales grew strong 38.2% (currency adjusted 38.7%) to €547 million. First-time consolidations contributed 22% to the growth. In total, Footwear was up 23.7% (24.3%) to €328 million and Apparel improved by a strong 81.2% (81.5%) to €182 million. Accessories realized a growth of 22.8% (25.3%) to €37 million. Team Sport sales contributed the strongest sales growth with over 40%.
Sales in the first six months rose by 33.3% or 31.3% currency adjusted to €1,189 million. Like-for-like, organic growth contributed a strong 12.9% and new consolidations 20.4% to the overall performance. In total, Footwear increased 20.5% (currency adjusted 18.5%) to €727 million, Apparel improved by 71.2% (69.5%) to €383 million and Accessories by 22.2% (22.1%) to €79 million.

Licensed business

The licensed business increased on a like-for-like basis by 30.9% in Q2, and 18.6% after six months. However, due to the take-backs of six license markets as of the beginning of this year, total licensed sales declined by 45.5% to €73 million and by 39.6% to €167 million respectively. Based on the remaining licensed business, royalty and commission income was €7.3 million in Q2 and €15.8 million for the first half.

Gross profit margin remains on a high level

Due to the planned and implemented shift in regional and product mix, the gross profit margin reached 51.4% in Q2 compared to 53.2% last year. First half gross profit margin reached 51.9% versus 53.3% last year. The Footwear margin decreased from 53.6% to 51.8% and Apparel from 53.4% to 51.8% while Accessories increased from 50.3% to 53.5%.

SG&A expenses impacted by strong brand investments

Due to the strong brand investments and the regional expansion total SG&A expenses increased in Q2 by 54.4% to €211 million and by 49,8% to €416 million during the first six months. As a percentage of sales, the cost ratio increased in line with expectations from 34.5% to 38.6% or from 31.1% to 35% respectively.

For the first half, Marketing/Retail expenses increased by 61.7% and accounted for €207 million or 17.4% of sales versus 14.4% last year, in line with expectations. In particular, the marketing campaign for the World Cup and other marketing and retail expenses led to the increase. Product development and design expenses rose by 40.6% to €27 million and, as a percentage of sales, from 2.1% to 2.3%. Other selling, general and administrative expenses were up 39.5% to €182 million, or from 14.6% to 15.3% as a percentage of sales. The increase in other SG&A expenses is related to the extended infrastructure and operations for Phase IV expansion and in line with expectations.

EBIT above expectation

Due to strong brand investments EBIT in Q2 declined by 15.4% to €69 million and by 5.6% to €201 million after six months. This resulted in an EBIT margin of 12.7% and 16.9% respectively. Taking into account the full-year guidance of a high single-digit decline in EBIT, H1 came out better than expected given the high investments.

With an interest result of €2.1 million in Q2 and €4 million for the first half, pre-tax profit decreased by 14.5% to €71 million and by 4.9% to €205 million respectively. During the first six months, tax rate remained at 29% on last years level.
As a result, net earnings were down by 14.9% to €50 million in Q2 and by 4.4% to €143 million in the first half. Net margin was calculated at 9.2% (last year 14.9%) for Q2 and at 12% (16.8%) for the first six months.

Earnings per share

Earnings per share in Q2 reached €3.12, a decrease of 14.3% versus last year. Year-to-date earnings per share were down by only 4% to €8.95, better than expected. Diluted EPS translates to €3.03 and €8.81 respectively.

Photo Credits: Robert Ashcroft/ PUMA
September 10, 2006
PUMA Teams Up with Personal Trainer Schellenberg and “007 James Bond: Casino Royal” actor Schick to Lead the Pack
PUMA® Complete Running Faces the Mountain at the GORE-TEX Transalpine Run

“Even though I stay in shape, I am an actor and not an athlete – but I was fascinated by the idea,” says Bond-movie-actor Clemens Schick. “It does take a certain amount of adventure spirit for a city boy like me to just go running up a mountain like that but I’m looking forward to the challenge.”

Karsten Schellenberg, the personal fitness trainer who has been preparing Schick for the run for five weeks is confident of success: “Due to his demanding roles as an actor, Clemens is obviously in good shape. Nonetheless this is a tough run and you need to train hard to be able to reach the top but Clemens loved the idea, worked hard for it and had the best product at his disposal”.

The expert trail run challenges participants with a distance of over 230 km and 14,000 meters of altitude and demands a lot of both product and runner. Over the span of eight days, runners not only enjoy the beauty of alpine pastures and woodland paths but also face the challenges of the Tyrolean Alps’ steep gravel trails and icy mountain ridges. As the running teams strive to the top, sudden climate and profile changes demand runners to stay focused at all times and commands the utmost flexibility of both man and material.

As official supplier of the GORE TEXTM Transalpine-Run 2006, PUMA chooses this extraordinary backdrop to demonstrate its point of difference in Running. Balancing the excellence of the performance of its Complete Running products with its lifestyle approach to running, PUMA sends celebrity duo Schellenberg and Schick out to conquer the last relay of a race that starts where the common paths end. Almost 2000 meters of altitude and a distance of close to 29 kilometers is what the duo will face on 9th of September from Schlanders to Latsch in Italy.

September 12, 2006
PUMA included in Dow Jones Sustainability Index
Sportlifestyle company identified as one of the 46 new global sustainable leaders

„In the past seven years, since the launch of the Dow Jones Sustainability Indexes, sustainable investing has been recognized by a growing number of investors and is increasingly seen as an important driver of long-term performance. We are delighted to support this momentum by calculation an expanding family of professional and objective sustainability benchmarks that are utilized around the globe”, said Michael A. Petronella, president, Dow Jones Indexes/Ventures.

Jochen Zeitz, CEO of PUMA AG: “We are very pleased that PUMA has made it into the Dow Jones Sustainability Index, which not only acknowledges our involvement for sustainability, but also clearly affirms that we are on the right path with our transparency approach and our responsibility in the social and environmental field.”

The S.A.F.E. concept (Social Accountability and Fundamental Environmental Standards) is a specific tool PUMA developed to continuously improve social and environmental standards in all contractors and subcontractors factories as well as to fully implement the Code of PUMA Conduct established in 1993. PUMA is a gradual member of the FLA (Fair Labour Association) since 2004 and has been listed in the Financial Times Stock Exchange FTSE4Good since 2005.

September 25, 2006
PUMA® AND MARCEL WANDERS TEAM UP FOR DESIGN-LED COLLECTION
Wanders will collaborate with PUMA to create a design focused accessories collection for Spring 2007

Marcel Wanders’ fame started with his iconic Knotted Chair, which he produced for Droog Design in 1996. He is now ubiquitous, designing for the biggest European contemporary design manufacturers like Cappellini, Bisazza, B&B Italia, Poliform, Moroso, Flos, Boffi, Droog Design and Moooi, of which he is founder and art director. His designs run from mass-produced objects to limited editions, from the Wanders Wonders collection, to interior and architectural projects. He was invited to be the guest editor of the International Design Yearbook 2005 and, in the same year, tried his hand in the hospitality business by realizing the highly acclaimed ‘Lute Suites’ – a series of seven apartments near Amsterdam. Wander’s work has been selected for all major design collections around the world.

“PUMA has a strong connection to changing culture and wants to stay close to cultural trends by being a leader at the same time,” said Marcel Wanders. “I love to find new areas for my creativity and create greater value for a larger audience. Although we are very different, we both believe we can create added value by inspiring our public in a seductive and creative way.”

The announcement was made at Design Boston 2006, Boston Design Center’s annual market for the architecture and design communities. The Marcel Wanders PUMA collection will be unveiled during Tokyo Design Week on October 31, 2006 and then in New York and Amsterdam in November. The collection will be available globally in all PUMA Stores and select retail partners in Spring 2007.

Photo Credits: Robert Ashcroft/ PUMA
Subscribe to Corporate