Franz Koch is currently in charge of Global Strategy for PUMA and based in Herzogenaurach. He has been responsible for the long-term strategic group development and management of special projects such as portfolio optimization, process re-engineering as well as mergers and acquisitions. Moreover, he coordinated and helped execute the company’s restructuring program in 2009 to lay the foundation for sustainable growth following the economic crisis. Koch has also strongly contributed to PUMA’s long-term sustainability program and most recently, he was instrumental in developing – in close cooperation with Jochen Zeitz and the other members of the Board of Management – the five-year growth strategy “Back on the Attack 2011-15” with its clear mission for PUMA to become the most desirable and sustainable Sportlifestyle company.

Jochen Zeitz, Chairman and CEO of PUMA: “Having an exceptionally analytical yet most pragmatic mind, Franz Koch has been one of the key drivers of PUMA’s strategic course and strongly contributed to our 2010 record sales level. Together, we have defined the company’s five-year strategic plan which will be the catalyst to tap into PUMA’s envisaged sales potential of 4 billion Euros in 2015. I am convinced that Franz is the right person at the right time and that he is the most qualified candidate and dedicated individual to take the helm at PUMA. I will personally accompany Franz’ transition period and I look forward to continuing a close and trusting cooperation with him.”

Koch joined PUMA in 2007 as Global Strategic Planner after having worked for the international management consultancy Oliver Wyman for several years. Koch (32) graduated in Business Administration from Leipzig Graduate School of Management and holds a Masters Degree in Commerce from the University of Sydney. The appointment of Franz Koch is the result of a thorough and diligent search process, in which many external and internal candidates were reviewed.

“Franz Koch, who has been working closely with Jochen Zeitz and the Board of Management over the past years, is our candidate of choice for this position. His excellent knowledge of the company and strategic expertise will guarantee a seamless handover and continuation of the company’s growth strategy. PUMA is one of PPR’s core brands and I am confident that Franz will bring PUMA to the next level. He has our full support and confidence,” said François-Henri Pinault, Chairman of PUMA’s Supervisory Board.

As announced last year, PUMA is about to convert into a European Corporation, trading under the name of PUMA SE. The transformation is subject to approval at the company’s annual shareholder meeting on April 14, 2011. Following the conversion into an SE, PUMA’s current CEO Jochen Zeitz will become Executive Chairman of the one-tier PUMA SE Board. Additionally, Zeitz has been appointed Head of the Sport & Lifestyle Group of PPR as well as Chief Sustainability Officer.

Highlights January – March 2011

• Consolidated sales increased by 13.2% in Euro terms to a record high of € 773 million

• Gross profit margin back to a strong, sector leading 52.4%

• EBIT 2.1% above last year at € 111.0 million

• Net earnings improved by 7.1% to € 77.7 million

• EPS increased to € 5.17 from € 4.81 last year

Outlook 2011:

• Based on the success of the past quarter and the positive business development, Management targets the milestone of € 3 billion in sales for the full year 2011.

• To support business growth and the “Back on the Attack” growth strategy, investments in marketing, sales, product development as well as process optimization will continue to affect the OPEX ratio.

• Despite expected moderate price increases in sourcing costs related to raw materials and wages for the 2nd half, Management still foresees continuous improvement of net earnings by mid single-digits.

Jochen Zeitz, CEO: “The first quarter performance was a strong start to 2011 and our Back on the Attack growth plan, as PUMA managed to generate strong sales growth. We were even able to mitigate the negative impact we saw from the disastrous events in Japan last month as our Asian/ Pacific region contributed with an increase in sales to the overall solid company performance. For the full year 2011 we continue to expect an increase in net earnings in the mid single-digit percentage range with sales targeting the € 3 billion milestone for the first time. PUMA continues to execute on the Back on the Attack company growth plan and performs at levels consistent with reaching the long-term target of € 4 billion in sales by 2015. The recent approval of our shareholders to convert PUMA from the German Aktiengesellschaft PUMA AG to the European Corporation PUMA SE will provide our company with a broader international profile, helping to tap into the many opportunities the international Sportlifestyle market offers.

Sales and Earnings Development January-March 2011

Global Brand Sales

Worldwide PUMA brand sales – comprised of consolidated and license sales – rose by 12.5% in Euro terms (8.8% currency adjusted) to € 811.1 million from € 720.8 million last year.

Consolidated Sales

PUMA’s first quarter consolidated sales reached € 773.4 million, rising 9.3% in currency adjusted terms and an impressive 13.2% in Euro terms when compared to the first quarter of 2010. This represents PUMA’s best ever first quarter. All product segments showed considerable growth: Footwear up 6.8% currency adjusted at € 417.2 million, Apparel up 2.2% at € 241.8 million, and Accessories posting a superb 42.4% increase at € 114.4 million. The strong performance in the Accessories product segment was also supported by the inclusion of Cobra Golf into the consolidation.
In regional terms, sales in EMEA grew by 4.4% currency adjusted to € 374.5 million, Asia/ Pacific posted a gain of 6.9% to € 163.9 million and PUMA continued its excellent performance in the Americas with sales growing by 19.9% to € 235.1 million.

Gross Profit Margin

The gross profit margin remained at an industry leading 52.4%, which is testament to PUMA’s continuing efforts to maximize returns and efficiencies. The Footwear segment had a gross profit margin of 51.3%, up from 50.9%. Apparel stood at 53.7%, down slightly from 53.9%. Accessories were at 54.0%, also down slightly from 55.7%.

Operating Expenses

Operating expenses before special items rose by 21.6% to € 298.6 million during the first quarter of 2011. As a percentage of sales, this represents an increase from 35.9% to 38.6% compared to last year. Reasons for this rise include currency fluctuations, as well as additional investments in Marketing, Sales and Product Design to fuel our “Back on the Attack” growth plan.

EBIT

Operating profit came in as expected, improving to € 111.0 million from € 108.7 million. This represents 14.4% of consolidated sales, down slightly from a rate of 15.9% at this time last year.

Financial Result / Income from associated companies

The financial result improved from € -1.4 million to € -0.2 million, including € 0.9 million from our investment in Wilderness.

Earnings before Taxes

PUMA’s EBT rose from € 107.3 million to € 110.8 million.
Tax expenses declined from € 34.8 million to € 33.1 million and the tax rate dropped from 32.4% to a normalized tax rate of 29.9%.

Net Earnings

Consolidated net earnings increased to € 77.7 million from € 72.5 million in 2010, an increase of 7.1%. Earnings per share rose from € 4.81 to € 5.17, and diluted earnings per share rose from € 4.80 to € 5.15.

Net Assets and Financial PositionEquity

Total assets (as of 31st March 2011) increased by 11.3% from € 2.068,5 million to € 2.303,2 million. This rise stems mainly from the expansion of the consolidated group, as Cobra Golf is included this year. The equity ratio declined slightly from 61.2% to 60.6%. However, in absolute figures, shareholders’ equity increased by 10.3% to € 1.395,9 million from € 1.265,7 million. As a consequence, PUMA’s balance sheet remains very strong.

Working Capital

PUMA’s overall Working Capital went up by 13.9% to € 598.1 million. On the asset side, inventories went up by 24.9% from € 371.8 million to € 464.3 million, supporting our expected sales growth in the upcoming quarters and trade receivables also increased, up 11.0% from € 520.4 million to € 577.8 million. Considering the change in scope and the strong increase in sales during the quarter, the trade receivables developed positively.
On the liabilities side, trade liabilities rose 25.8% from € 270.4 million to € 340.2 million.

Cashflow/Capex

The Free Cashflow (before acquisitions) came in at € -113.5 million versus € -71.6 million last year. The additional outflow was caused mainly by the increase in working capital and tax payments.
The payments for acquisitions are related to the purchase of the remaining shares of PUMA China, as announced in our third quarter results last year.
For Capex, the company spent € 10.8 million versus € 7.7 million in last year’s first quarter. The increase derives from investments in the improvement of organizational processes and IT, which are necessary components of our growth strategy.

Cash Position

Total cash (as of 31st March 2011) dropped by 29.1% to € 300.8 million from € 424.2 million last year. Bank debts were reduced by 25.9% from € 52.3 million to € 38.8 million. As a result, the net cash position decreased 29.6%, from € 371.9 million to € 262.0 million.

Share buyback

PUMA continued with its share buy back program and purchased 51.720 shares for € 10.9 million during the first quarter.

Other Events

PUMA AG converts to a Societas Europaea (SE)

As previously reported, PUMA’s shareholders returned a positive vote in April’s Annual General Meeting on the conversion from a German ‘Aktiengesellschaft’, or AG, to a European ‘Societas Europaea’, or SE. The conversion is expected to be completed latest by July.

Outlook 2011

As the first quarter visibly demonstrates, PUMA’s “Back on the Attack” strategy is already taking effect, with higher investment in marketing and product being offset by significant increases in sales with a stable gross profit margin. Taking into account the risk of higher input prices in the form of raw materials and wages for the second half of the year, PUMA’s outlook for 2011 continues to be favourable. We continue to expect an improvement in net earnings in the mid single digit range for 2011 whilst targeting the € 3 billion milestone in sales.

As part of PUMA’s long-term sustainability plan, the analysis was commissioned in recognition that producing and selling PUMA products has a wide impact along the entire supply chain. By identifying the most significant environmental impacts, PUMA will develop solutions to address these issues, consequently minimizing both business risks and environmental effects. PUMA’s E P&L statement provides an unprecedented and detailed level of understanding, sets a new benchmark in corporate environmental reporting and will hopefully serve as a catalyst for others to join an industry-wide engagement.

The first results of PUMA’s E P&L have revealed that the direct ecological impact of PUMA’s operations translates to the equivalent of €7.2 million of the overall impact valuation. An additional €87.2 million falls upon four tiers along the supply chain. In total, this leads to an overall environmental impact of GHG and Water Consumption of PUMA’s operations and the supply chain of €94.4 million. By putting a monetary value on the environmental impacts, PUMA is preparing for potential future legislation such as disclosure requirements. These costs will serve as a metric for the company when aiming to mitigate the footprint of PUMA’s operations and all supply chain levels and will not affect PUMA’s net earnings.

“The E P&L statement is a milestone in PUMA’s mission to become the most desirable and sustainable Sportlifestyle company in the world. It is an essential tool and a shift in how companies can and should account for and, ultimately, integrate into business models the true costs of their reliance on ecosystem services and PPR HOME will encourage and collaborate with the industry to adopt this tool,” said Jochen Zeitz, Chairman and CEO of PUMA and Chief Sustainability Officer PPR. “Gaining a better understanding of the source of the natural goods and services PUMA relies on and the declining availability of the basic resources required for our business growth, will help PUMA build a more resilient and sustainable business model and ultimately better manage its impacts on the environment.”

PUMA chose GHG emissions and water for the first analysis in their E P&L development as they were considered to be the most significant environmental impacts. The economic valuation of these impacts (please refer to www.about.puma.com for details of methodology) by PwC (GHG emissions) and Trucost (water use), estimated a value per tonne of CO2e at €66 and an average water value of €0.81/ m3. The analysis found that:

• Including the full supply chain, the overall impact was valued at €94.4 million in total for 2010 with greenhouse gases equating to €47.0 million and water to €47.4 million.

• Of the total, PUMA’s operations accounted for 15% of the overall GHG emissions analysed, and 0.001% of water consumption. This is the equivalent to €7.2 million of the overall valuation.

• The remaining GHG and water consumption – the equivalent of €87.2 million – fell upon its entire supply chain.

“Fundamentally, this analysis is about risk management for the environment, and for business, because you cannot separate the two,” said Alan McGill, partner, PwC Sustainability and Climate Change. “This is a first for a company to measure and value the impact of its business in this way and gives PUMA a unique and challenging insight into their supply chain. It’s a game–changing development for businesses to integrate environmental issues into their current business model like this, because it provides a basis for embedding their reliance on ecosystem services into business strategy. Tackling the impacts will need concerted efforts by the businesses in their supply chain as PUMA shares a common but differentiated responsibility with other brands at the production facilities,” he continued.

Analyses of the water and GHG impacts were performed across PUMA’s value chain, including the operations of raw material and product suppliers as well as logistic services, which PUMA has limited control over.

• Tier 4: Raw material production, such as cotton farming, oil drilling, etc.

• Tier 3: The processing of raw materials, such as leather tanneries, chemical industry, oil refining

• Tier 2: Outsourced processes such as embroiders, printers, outsole production

• Tier 1: The manufacturing of its products

• PUMA core operations: Design, logistics services, warehousing, head office functions and retail

Biggest Environmental Impact Derives from Raw Material Production

The analyses have shown that the biggest environmental impacts in the value chain occur, not through PUMA’s core operations but at the level of its Tier 4 suppliers, where raw materials are derived from natural resources, such as the cultivation and harvesting of cotton, cattle ranching for leather, and natural rubber production. This part of the supply chain accounts for 36% of the total GHG (€16.7 million) and 52% of water consumption (€24.7 million); indicating that the most water intensive activity in the production of a t-shirt occurs at the initial step – the cultivation of cotton.

This analysis provides the first results of the first stage in a three-stage process to consider PUMA’s and its supply chain’s environmental, social and economic impacts, ultimately leading to the development of an all encompassing Environmental, Social and Economic Profit and Loss Account.

The final results completing Stage 1 – to be released in autumn this year – will see the inclusion of additional environmental key performance indicators such as acid rain and smog precursors, volatile organic compounds, waste and land use change, completing the valuation of the significant environmental impacts in PUMA’s value chain.

As the impacts of PUMA’s operations not only refer to the natural environment, Stage 2 will require collaboration with other corporate and civil society stakeholders in tackling the complexities of social factors in sustainability such as fair wages, safety and working conditions, enabling the development of an Environmental and Social P&L account.

Stage 3 will complete the other side of the equation, moving to the equally complex area of valuing the social and economic benefits from PUMA’s operations through the creation of jobs, tax contributions, philanthropic initiatives and other value-adding elements. These benefits will then be offset against the environmental and social costs calculated in Stages 1 and 2, hence completing PUMA’s Environmental, Social and Economic P&L statement. Stage 3 will require a strong collaborative effort to develop robust valuation methodologies and approaches. This challenge will have resonance with the corporate sector as more and more companies actively undertake similar analyses throughout their supply chains.

“Companies that understand their dependence on natural resources along the value chain are well placed to manage underlying risk from rising raw material costs and scarcity of supply issues”, said Dr. Richard Mattison, CEO of Trucost. “Companies are already facing increasing input costs as a result of rising commodity prices related to climate change and water availability. PUMA is now positioned to address these challenges in advance and we have helped provide them with management tools to minimise risk, hedge against uncertainty and identify new opportunities to optimise the sustainability of its products.”

PUMA’s Response to the Results to Minimize Risks

To reduce the impact, PUMA will start by using these findings to better direct its sustainability efforts and initiatives. PUMA’s sustainability scorecard, which was introduced in early 2010 and sets targets such as 100% sustainable packaging and 25% reductions of carbon, energy, water for 2015, has already begun to address the environmental impacts at PUMA’s operations and Tier 1 supplier levels. PUMA will examine how to adjust the targets set in its current sustainability scorecard and look for solutions along the entire supply chain.

In order to target solutions that address the levels of the greatest impact from tier two to four, PUMA and PPR HOME will look to play a catalytic role in raising awareness that the current business model is outdated and needs decisive reforms, forging partnerships and collaborations to explore new and innovative ways to differentially attribute the responsibilities and equitably share the costs of these, while building capacity at suppliers’ factories and developing new materials and products.

Raising Awareness

PUMA and PPR HOME are sharing 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 within business operations into account.

This analysis will also help to better assess the relative environmental impacts of sourcing from different countries and regions. Down the line it will allow PUMA to improve supply chain management and reduce supply chain risks.

Developing synergies and partnerships

PUMA’s majority shareholder, PPR, has recently joined the World Business Council for Sustainable Development (WBCSD), which could provide an appropriate platform for constructive debate on the issue of differentiated responsibility and equitable sharing of the costs of environmental impacts while exploring new business models to help reduce these costs in future. For many years, PUMA has been engaging with other global initiatives, industry dialogues and corporate alliances to address sustainability challenges such as: the UN Global Compact, the Fair Labor Association, the Carbon Disclosure Project and, most recently, the 2 Degree Initiative and PPR’s luxury brands have been long-term members of organizations such as the Sustainable Luxury working group (set up by the Business for Social Responsibility) and the RJC (Responsible Jewellery Council).

PUMA will soon join the Sustainable Apparel Coalition, an industry-wide group of leading apparel and footwear brands, manufacturers, experts and the United States Environmental Protection Agency to reduce the environmental and social impacts of apparel and footwear products. This underpins PUMA’s effort to increase collaborations with its industry peers to address the environmental impacts occurring at all shared levels of the supply chain.

Building Capacity to Create Snowball Effect

PUMA will focus even more attention on capacity building projects in collaboration with other industry players to help Tier 1 supplier management identify weak points in their operations by offering training programs and by enabling them to make improvements, independently. For more than six years, PUMA has carried out capacity building projects together with other industry brands to improve environmental and social conditions at Tier 1 supplier factories.

Over the past decade PUMA has ensured that Tier 1 suppliers are committed to adhere to PUMA’s environmental and social standards. The company will now require Tier 1 suppliers to guarantee that all of their suppliers in the next tier down follow the same guidelines. Through this it is hoped that over time all suppliers will comply with PUMA’s Code of Conduct and Environmental, Social and Health & Safety standards.

Innovating for the Development of Sustainable Materials and Products

By 2015, 50% of PUMA’s international collections will be manufactured according to PUMA’s internal sustainability standard, PUMA S-Index, using more sustainable materials such as recycled polyester, that take into account the enormous environmental impact of raw material production. PUMA will investigate the opportunity to address the impact of Tier 1 to Tier 4 suppliers through the innovative development of more sustainable materials and products.

Nina Nix, PUMA’s Global Director Accessories & Licensing, has been appointed as the new General Manager of Dobotex. She will take up her new position on the 1st of January 2012. “PUMA and Dobotex have a long and successful history and we are proud that Dobotex will be 100% part of the PUMA group,” said Nina Nix. “Dobotex is a true product expert and offers a leading service proposition in its field of activity. Whilst further fostering synergies, especially in the global expansion of sales and distribution, Dobotex remains an independent company. I very much look forward to working with the Dobotex team and to contribute to the continued growth of Dobotex.”

Current Dobotex’ managing director Jeroen van Dooren said: “PUMA taking over the remaining shares as of January 1st 2012 and Nina Nix taking over the reins of the company could not have come at a better time, and is coupled with a well prepared management team looking to execute Dobotex’ ambitions for market expansion.”

Dobotex, which is located in s’Hertogenbosch in the Netherlands, was founded in 1979 and signed the first license agreement with PUMA for socks in 1997. As of January 1, 2009, PUMA became a majority shareholder of Dobotex and hence the market leader in the sports socks category in Europe.

The new PUMA South Africa kit was also launched in Johannesburg today, by South African captain Stephen Pienaar along with Siphiwe Tshabalala, Renielwe Letsholonyane, Kagisho Dikgacoi, Darren Keet and Katlego Mphela. Featuring the very latest innovations of PUMA technology, the kit incorporates performance enhancing fabric through moisture wicking properties, mesh inserts on the side for improved ventilation and embossed fabric to enhance the optical appearance. The shirt will also feature both the Protea and SAFA badges. In line with PUMA’s CSR commitment to Africa, all proceeds from replica home shirts sales will be donated to the SOS Children Villages in South Africa, a cause designated by the South African Football Association.

Christian Voigt, Senior Head of Global Sports Marketing at PUMA said “We are delighted to enter into this new partnership with the South African Football Association. PUMA has a longstanding commitment to Africa and African football, and this new relationship further underlines our continuing investment in the continent. In partnering with the South African Football Association, we are proud to have added another great asset to our sports marketing portfolio, and we look forward to a long and successful relationship.”

Kirsten Nematandani, President of the South African Football Association said, “To announce this new commercial relationship with PUMA is a great privilege for us, and we are very happy to have secured this deal. PUMA’s presence in African football really speaks for itself, and they were the most desirable company for us to align ourselves with. Their technical innovation and excellence is of course important, but more so is the heritage and support they have demonstrated for this continent over a number of years. They are the perfect partner as we strive to grow the profile of football in South Africa in the years to come.”

South Africa will become the twelfth current African international team to be currently outfitted by PUMA, the German company is also supplying the Orange African Cup of Nations champions Egypt, Ghana, Ivory Coast, Cameroon, Algeria, Senegal, Morocco, Togo, Burkina Faso, Malawi and Namibia.

As part of the brand’s commitment to Africa, PUMA continues to support a number of grass roots and charitable initiatives across the continent. In 2010, the sportlifestyle brand launched the Africa Unity kit – the official FIFA sanctioned third kit of all PUMA sponsored African national football teams, with proceeds from global sales supporting biodiversity causes in Africa. Later the same year, 10,000 durable footballs were delivered to various football projects across a number of West African countries. PUMA was also the official sponsor and fanwear supplier of the 2010 Orange African Cup of Nations in Angola. In 2009, PUMA incorporated the use of sustainable cotton sources from Africa into its product ranges, supporting the Aid by Trade Foundation’s ‘Cotton Made in Africa’ initiative, developed to improve the living conditions of African cotton farmers and promote environmentally responsible farming practices.

PUMA is the sport-lifestyle brand with the longest heritage in motorsport, and its development of fire retardant technology has revolutionized driver racewear by dramatically reducing weight while maintaining the optimal performance of safety and comfort. PUMA will continue to supply Scuderia Ferrari with the latest technological innovations in team and racewear, enabling Fernando Alonso and Felipe Massa to compete for the coveted Drivers’ and Constructors’ Championships in one of the lightest and safest race suits in Formula One.

Luca di Montezemolo, Chairman of Ferrari S.p.A., said: “We have enjoyed a very successful relationship with PUMA over the past six years, and we are very happy that this will continue long term. Their commitment to product design, development and racewear technology is unrivalled in the industry, and they continue to impress us on all counts. Clearly licensed apparel and footwear is a key business area for us, and it could not be in better hands. We look forward to continue working with PUMA for many years to come.”

Jochen Zeitz, Chairman and CEO of PUMA AG, said: “We are delighted to continue and deepen our partnership with Ferrari. To extend a relationship with the most prestigious brand in the automotive industry and the most popular and successful team in Formula One is of great benefit to us both commercially and reputationally. The Ferrari licensed product development we have undertaken so far has been very successful, and the plans we have for the coming years are equally exciting. They are an ideal motorsport partner for us in every respect.”

The verdict was reached on 14 June 2011. This outcome is a direct consequence of PUMA’s successful appeal against the arbitration ruling, which previously required remittance of said funds to the former Spanish licensee and holder of the remaining rights Estudio 2000 S.A. to vest the remaining trademark rights in Spain.

“The ruling by the District Court of Madrid is totally in line with what we had anticipated and frees us from the payment of 98 million Euros for the vesting of PUMA trademark rights,” said Jochen Zeitz, Chairman and CEO of PUMA AG. “We will now make full use of all the options available to us to secure all PUMA trademark rights in Spain.”

PUMA will continue its efforts in uniting all Spanish PUMA trademarks.

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

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

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

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

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

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

Highlights Second Quarter 2011

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

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

• EBIT 3.2% above last year at € 55.4 million

• Net earnings up 10.6% to € 37.6 million

• EPS up to € 2.51 from € 2.26 last year

Highlights First Half 2011

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

• Gross profit margin still a strong 50.9%

• EBIT 2.5% above last year at € 166.4 million

• Net earnings improved by 8.2% to € 115.3 million

• EPS increased to € 7.69 from € 7.07 last year

Outlook for the Financial Year 2011

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

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

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

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

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

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

PUMA Faas is building up momentum

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

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

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

Latin America and Asia remain the main growth areas

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

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

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

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

Gross Profit Margin at industry-leading levels

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

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

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

Operating Expenses

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

EBIT

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

Financial Result / Income from associated companies

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

Earnings before Taxes

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

Net Earnings

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

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

Net Assets and Financial Position

Equity

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

Working Capital

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

Cashflow/ Capex

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

Cash Position

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

Share buyback

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

Other Events

PUMA AG converts to a Societas Europaea (SE)

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

SPANISH Court Ruling

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

Outlook for the Financial Year 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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