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.

PUMA will also provide MERCEDES GP PETRONAS with its latest innovations of fireproof racewear for the team’s drivers and all technical pit personnel. As the Sportlifestyle brand with the longest heritage in motorsport, PUMA’s development of fire retardant technology has helped revolutionise driver racewear by dramatically reducing weight, while maintaining the optimal performance of safety and comfort.

Ross Brawn, Team Principal at MERCEDES GP PETRONAS commented: “PUMA has a long and successful heritage in motorsport and, having worked with them previously in Formula One, I know their technical performance innovations for racewear are amongst the best in the industry, which is of course critical to our racing operation. PUMA’s global capability to design, develop and distribute licensed products for fans of the Silver Arrows around the world is equally impressive. This is a key partnership for MERCEDES GP PETRONAS, and one we are delighted to have established.”

Christian Voigt, Senior Head of Global Sports Marketing at PUMA said: “PUMA is fully committed to motorsport for the long term, and signing this partnership with the MERCEDES GP PETRONAS team is a major statement for us as a brand. Mercedes-Benz has such a rich heritage in motorsport and MERCEDES GP PETRONAS is an exciting continuation of this story. With such talented drivers and team personnel, it’s clear they are destined for great things in the years to come. Combining our experience in licensed product development and distribution with the brand equity of the team has significant commercial benefits for both parties, and is another strong basis for this new partnership.”

Highlights Third Quarter 2011

• Consolidated sales increased by 10.2% currency adjusted to € 841.6 million

• Gross profit margin remained at 50.0% despite volatile input prices

• EBIT improved by 1,8% to € 118.6 million

• Net earnings remained flat at € 81.7 million

• EPS are up to € 5.45 from € 5.43

• PUMA has signed football stars Agüero, Falcao and Fàbregas

Highlights First Nine Months of 2011

• Consolidated sales climbed 11.0% currency adjusted to € 2.3 billion

• Gross profit margin remained at a sector-best 50.6%

• EBIT rose by 2.2% to € 285.0 million

• Net earnings improved by 4.7% to € 197.1 million

• EPS increased from € 12.51 to € 13.15

Outlook for the remainder of the Financial Year 2011

• PUMA’s management reiterates that PUMA’s target is € 3 billion in sales for the full year.

• In light of PUMA’s “Back on the Attack” growth strategy, investments and expenses will remain at a high level, and gross profit margins will continue to be stressed based on procurement price volatilities.

• Management continues to foresee an improvement of net earnings in mid single-digits for the full year.

“PUMA posted a very solid sales performance for the fifth consecutive quarter,” said Franz Koch, CEO of PUMA SE.”This underpins our 5-year growth strategy, which is already delivering results. After a strong performance in the first nine months of this year, we are now approaching our sales target of € 3 billion for the full year, and despite continuing cost pressures we maintain our forecast of an improvement in net earnings in mid single-digits.“

Asia/Pacific and Latin America drive PUMA’s Sales Growth in the Third Quarter – Performance Business accelerating

PUMA’s third-quarter consolidated sales rose 10.2% currency adjusted and 7.3% in Euro terms to € 841.6 million compared to last year, representing the most successful quarterly performance in the firm’s history. Asia and Latin America provided the platform for these numbers, underpinning the excellent overall result with double-digit growth.

With all product categories contributing to this increase, Footwear rose 7.0% currency adjusted to € 431.1 million, Apparel went up 13.8% to € 294.7 million and Accessories climbed 13.9% to € 115.8 million.

PUMA’s Running category in particular grew significantly, boosted by Usain Bolt’s spectacular performances at the Track & Field World Championships in Daegu and by the light-weight concept which includes our best selling PUMA Faas range. The shoe is constructed with BioRide Technology which provides runners with a naturally responsive ride. PUMA’s Women’s Fitness category is growing strongly, a consequence of enhanced targeting of the female consumer demographic with PUMA’s Bodytrain concept. PUMA’s Sailing category also improved, as sales have been accelerating in the run-up to PUMA’s participation in the Volvo Ocean Race 2011-2012. Given the duration of this sailing marathon and in the light of our new extended range of outdoor products, PUMA expects the positive performance of its Sailing category to continue.

PUMA’s five-year growth plan “Back on the Attack” already yielding fruit

As previously detailed, PUMA is continuing to work on improving its performance categories without losing sight of its Sportlifestyle positioning as a brand. This was laid out in the company’s growth strategy one year ago, which focused on strengthening PUMA’s Sports Performance business alongside its lifestyle segment. To further boost PUMA’s brand visibility on international football pitches and underline our position as the No. 3 football brand, PUMA signed three of the world’s top football stars during the third quarter: Manchester City’s Sergio Agüero, Atletico Madrid’s Falcao and FC Barcelona’s Cesc Fàbregas.

PUMA also introduced its new football boot, the Powercat 12. These boots will be worn by Fàbregas, Nemanja Vidic of Manchester United and Gianluigi Buffon, goalkeeper of the Italian National Team, amongst others. This innovative boot features the new PUMA 3D DUO Power Shooting Technology, applied to the inside of the boot.

Cobra-PUMA-Golf also continues to perform well, where the 360 degree offering appeals to discerning consumers. PUMA also congratulates its brand ambassador and golf professional Lexi Thompson who, at 16 years of age, has become the youngest ever winner on the LPGA tour in America.

Asia/Pacific and Latin America remain the main growth areas in the quarter

In regional terms, PUMA continued its excellent performance in Asia/Pacific, with sales growing by 16.4% currency-adjusted to € 196.0 million. Light-weight Running gear such as the Faas range and Women’s Fitness products (Bodytrain) drove the overall growth in this region.

EMEA also performed well, posting an increase of 9.5% currency adjusted to € 410.6 million. Russia, Turkey, Spain and Germany in particular contributed to this performance.

Sales in the Americas grew by 6.7% currency-adjusted but were down 0.7% in Euro terms at € 235.0 million. Latin America delivered a remarkable top-line performance, reflecting broad-based double-digit growth across all countries in the region, while North America had to comp against strong double-digit growth numbers from the previous year.

Consolidated sales for the nine-month period climbed 11.0% currency adjusted (9.9% in Euro terms) to € 2.29 billion. EMEA sales rose 7.7% (7.6% currency adjusted), the Americas improved a satisfying 8.7% (14.2% currency adjusted) and Asia/Pacific climbed an impressive 16.4% (14.3% currency adjusted).

Nine-month sales across all product categories continued to climb. Footwear sales were up 7.5% (9.5% currency adjusted), Apparel sales increased 8.8% (8.9% currency adjusted) and Accessories grew 22.7% (22.8% currency adjusted), due in part to the full year effect of the Cobra golf acquisition last year.

Gross Profit Margin remains at industry-leading levels despite cost pressure

PUMA’s ongoing efficiency drive has resulted in a third quarter gross profit margin of 50.0%, which remains the industry leading number.

The Footwear segment had a gross profit margin of 49.8%, up from 49.7%. Apparel stood at 50.3%, up from 50.0%. Accessories were at 50.0%, a decline from 51.8% which can be attributed to higher procurement costs.

For the first nine months of 2011, gross profit margin is down slightly to 50.6% from 51.0% compared to last year. The Footwear margin is currently at 49.8% down from 50.4%, Apparel down from 51.9% to 50.9% and Accessories up from 51.2% to 52.4%.

Operating Expenses

Operating expenses rose by 9.7% to € 307.0 million during the third quarter of 2011. As a percentage of sales, this represents a slight increase from 35.7% to 36.5% compared to last year. For the full year to the end of September 2011, Operating expenses rose by 13.6% to € 885.5 million. Increases in expenditure arose from our continued investments outlined in our 5-year growth plan and the full year effects caused by the extension of the scope of consolidation with Cobra and PUMA Spain now fully included. The majority of those incremental increases went into Marketing, Product Design and enhancements in our supply chain.

EBIT

Operating profit improved to € 118.6 million from € 116.6 million in line with expectations. This represents 14.1% of consolidated sales versus 14.9% at this time last year. On a nine month basis EBIT was up 2.2% to € 285.0 million.

Financial Result / Income from associated companies

The financial result declined from € -1.4 million to € -2.1 million, however, the nine month number improved from € -4.1 million last year to € -3.9 million.

Earnings before Taxes

PUMA’s third quarter EBT rose from € 115.1 million to € 116.6 million. They also rose from € 274.8 million to € 281.1 million on a nine month basis. Quarterly tax expenses increased from € 33.4 million to € 34.9 million and the tax rate increased from 29.0% to 30.0% in the quarter but improved from 31.5% to 30.0% as of September 30, 2011.

Net Earnings

Consolidated net earnings were flat at € 81.7. Earnings per share rose from € 5.43 to € 5.45, and diluted earnings per share were up from € 5.39 to € 5.45.
For the first nine months of 2011, net earnings rose by 4.7% to € 197.1 million. EPS increased by 5.1% to € 13.15.

Net Assets and Financial Position

Equity

Total assets(as of September 30, 2011) grew by 4.5% from € 2,319.0 million to € 2,422.5 million. This rise is primarily attributable to an increase in both inventories and trade receivables based on the additional volume in business. The equity ratio rose sharply from 57.8% to 62.9%, signifying further improvement in our capital base. In absolute figures, shareholders’ equity increased by 13.7% from € 1,340.2 million to € 1,524.3 million.

Working Capital

PUMA’s overall Working Capital went up by 35.0% to € 668.7 million. On the asset side, inventories went up by 18.5% from € 449.2 million to € 532.4 million, supporting our continued and expected sales growth in addition to our new styles and offerings. Trade receivables also increased, up 13.3% from € 538.9 million to € 610.5 million. This again is an effect of our growth in sales compared to this point in time last year.

Cashflow/ Capex

The Free Cashflow (before acquisitions) came in at € -89.4 million versus € 57.9 million last year. The additional outflow resulted from tax payments and higher working capital needed as well as higher CAPEX. For Capex, the company spent € 44.6 million versus € 35.5 million in 2010. The increase derives mainly from investments in the improvement of organizational processes and IT systems as well as in the expansion of our Retail store portfolio, all of which continue to be integral components of our growth strategy.

Cash Position

Total cash (as of September 30, 2011) dropped by 30.7% to € 289.5 million from € 417.9 million last year. Bank debts were reduced by 39.9% from € 57.2 million to € 34.4 million. As a result, the net cash position decreased 29.3%, from € 360.7 million to € 255.1 million.

Share buyback

PUMA did not activate its share buyback program during the third quarter of 2011.

Outlook for the Financial Year 2011

Going into the final quarter of 2011, we reiterate that PUMA’s target is €3 billion in sales for the full year. Our overall outlook remains positive despite the current uncertainty afflicting various markets at this time. We anticipate ongoing input cost volatility, although we have demonstrated in the third quarter that our ability to maintain gross profit margins remains undiminished. As previously communicated, our current elevated operating and capital expenditures are an integral part of our growth strategy. None the less, we continue to expect full year net earnings to improve in the mid-single digit range.

Franz Koch, Chief Executive Officer at PUMA SE commented: “We are really excited about this new addition to our football portfolio. Borussia Dortmund perfectly embodies the mix of sport and lifestyle, an ethos we share at PUMA. The brand values emphasised by both companies of joy, enthusiasm and passion make this partnership a perfect match. Our association with Borussia Dortmund will allow us to further expand our position as the clear number three football brand.”

Matthias Bäumer, General Manager at PUMA Germany says: “We are very pleased to be able to strengthen our portfolio with such a long-standing and successful Bundesliga club as Borussia Dortmund. The enthusiasm of this club and its unique fans will not only allow us to leave our mark in the field of Teamsports and merchandising, but provide our retail partners with innovative football product and marketing concepts.”

Hans-Joachim Watzke, Borussia Dortmund Club President said: “Borussia Dortmund is thrilled to enter this new partnership with PUMA. We share a great synergy with PUMA, we both have brand values that extend beyond simply performance on the pitch, and our work together in coming seasons will reflect this. From our very early conversations with PUMA it was abundantly clear that they wished to make Borussia Dortmund fans integral to the brand’s football campaigns in Germany, to value them as we do. This marketing focus was a key reason for us signing a partnership with PUMA, and we are excited about the prospect of implementing these plans for the 2012/13 season and beyond.”

Borussia Dortmund will become the third current Bundesliga club to partner with PUMA, joining VfB Stuttgart and TSG Hoffenheim in the global Sportlifestyle brand’s football family. PUMA also partners with numerous club teams such as Girondins Bordeaux, AS Monaco, Feyenoord Rotterdam, Tottenham Hotspur, SS Lazio and Olympiakos Piräus as well as international teams including Italy, Czech Republic, Switzerland, South Africa, Cameroon, Ghana, Ivory Coast, Algeria, Chile and Uruguay. Borussia Dortmund will also join a host of international player assets that have joined PUMA in recent months including Sergio ‘Kun’ Aguero, Ramadel Falcao and Cesc Fabregas.

The morning rain let up and the skies cleared in time for race start. PUMA’s Mar Mostro and crew quickly made their way down the first leg, rounding the first mark in third position. Shortly after passing the second mark, they moved ahead of CAMPER to take the second position behind Abu Dhabi. Although the breeze died, forcing the race course to get shortened, PUMA held on to second place through the third gate and across the finish line. CAMPER finished third, followed by Team Sanya in fourth, the Groupama sailing team in fifth and Team Telefónica in sixth.

“We got off to a good start,” said tactician Kelvin Harrap. “At the first turning mark, we had the opportunity to turn inside Abu Dhabi, but we took the conservative option and went behind them. At the bottom mark we went past CAMPER. Then, the rest of the race was just a matter of staying in the breeze – it was so variable. We sailed well today.”

Three special guests joined the team onboard to witness the action first hand: PUMA CEO Franz Koch, BERG CEO Håkan Svensson and HRH Prince Carl Philip of Sweden.

“It was truly awesome to be out there with the boys,” said Koch. “I was sitting in the back with Prince Carl Philip and we had a good time, chatted a lot and talked about the strategy for the race. It was wonderful to see the team in action and a great experience. I think we’re well positioned, and I look forward to following the team throughout the race.”

The In-Port Race marked the first opportunity for teams to score points towards the overall standings in the Volvo Ocean Race 2011-2012. With five points, the team heads into the start of Leg 1 next week in second place on the leaderboard.

On Sunday, the Pro Am Race will begin at 10:00 UTC (12:00) local with the first of three races. Guests onboard each race will participate in sailing PUMA’s Mar Mostro around the race course. Koch and Svensson will once again join the PUMA crew for the Pro Am, and this race they’ll get a bigger piece of the action.

In-Port and Pro Am races will be held at all 10 port stopovers. The first leg of this year’s Volvo Ocean Race gets underway on Saturday, November 5, and the fleet will travel 39,000 nautical miles, finishing in Galway, Ireland, in July 2012.

The PUMA Ocean Racing team is under the leadership of Read (Newport, Rhode Island, United States). The team includes: Tom Addis, Navigator (Sydney, Australia); Ryan Godfrey, Pitman (Adelaide, Australia); Kelvin Harrap, Helmsman, Inshore Tactician (Napier, New Zealand); Brad Jackson, Watch Captain (Auckland, New Zealand); Rome Kirby, Trimmer & Driver (Newport, Rhode Island, USA); Michael “Michi” Müller, Bowman (Kiel, Germany); Tony Mutter, Watch Captain (Auckland, New Zealand); Casey Smith, Bowman (Brisbane, Australia); Jonathan “Jono” Swain, Helmsman & Trimmer (Durban, South Africa); Amory Ross, Media Crew Member (Newport, Rhode Island, USA); Kimo Worthington, General Manager (Portsmouth, Rhode Island, United States); and Tim Hacket, Shore Team Manager (Sydney, Australia).

RESULTS

Position / Team / Time / Points

1. Abu Dhabi Ocean Racing / 53 minutes 44 seconds/ 6
2. PUMA Ocean Racing powered by BERG / 1:07:58 / 5
3. CAMPER with Emirates Team New Zealand / 1:10:11 / 4
4. Team Sanya / 1:10:43 / 3
5. Groupama sailing team / 1:11:11 / 2
6. Team Telefónica / 1:12:08 / 1

QUOTING KEN READ:

On today’s result:
“You like getting points any time you have the opportunity to do so. We now go into this week with good morale. But, as soon as the next gun fires, it’s all wiped away and it’s time to start again.”