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.”

Today’s unveiling at the Design Museum in London, brought together high profile football players and CAN artists from each of the 10 PUMA partnered teams, including Samuel Eto’o of Cameroon, John Mensah of Ghana and Yaya Touré of Ivory Coast. With the 2012 Orange Africa Cup of Nations® fast approaching, the event was the perfect platform for PUMA to demonstrate how the brand has fused its work within sport and art, seamlessly bringing together two worlds that don’t often collide.

Central to the project is PUMA.Creative (a programme of PUMAVision), that brings together individual artists and organizations, and provides them with a platform for creative exchange and international exposure. Through PUMA.Creative’s CAN programme, artists were commissioned to design a football jersey inspired from the country’s heritage, culture and traditions. Ten artists worked with their home nation to create unique and inspiring designs for the official football kits.

“PUMA has been at the forefront of integrating the two disparate worlds of sport and art, and today through a celebration of football, art, colour and culture, we have shown to the world how these two spheres can be uniquely combined,” comments Franz Koch, CEO of PUMA SE. “PUMA has a long standing history with Africa, and this event demonstrates how as a brand we continue to be fully committed to our relationship with the continent.”

PUMA does indeed have a celebrated history with African football, each year bringing something new and different to the football category. Notable highlights include the African Unity Kit for the FIFA World Cup 2010 and the Cameroon Unikit in 2004. Art has also featured prominently in PUMA projects: to celebrate the FIFA World Cup 2010, the brand commissioned contemporary artist Kehinde Wiley for a series of portraits with African football players and to design African-inspired lifestyle products.

The PUMA partnered African national teams represented include Cameroon, Ghana, Ivory Coast, Algeria, Namibia, Senegal, Togo, Gabon, Burkina Faso and PUMA’s newest partner South Africa, which signed with the sportlifestyle brand in June 2011. The technical kits have been designed to maximise the player’s on-pitch performance. The jersey fits the body closely to avoid grabbing from the opponent, it also emphasises the physique of the players, allowing them to exhibit their physical presence on the pitch. The fabric features PUMA’s U.S.P Moisture Management technology, enhancing body performance by dragging moisture away from the body, enhancing air flow and keeping the body at the ultimate performance temperature.

Terence Parris, Head of Teamsports Marketing at PUMA SE comments, “African football continues to play a huge part in our global sports marketing strategy. Over the past decade, we have progressively developed our relationship with Africa, investing in grassroots projects, player relationships and African federation partnerships. The emotion and passion of African football perfectly complements our brand ethos and we are uniquely privileged to be in a position to work with a continent with such rich culture and heritage. These football kits embody all of our brand values.”

PUMA has worked with the Design Museum in London to launch a month-long exhibition ‘Interpretations of Africa: Football, Art and Design’ to celebrate PUMA’s inspired new football kit designs for the 10 PUMA partnered African National football teams.

Through the African kits revealed today, ‘Interpretations of Africa: Football, Art and Design’ explores the response of the 10 artists from the Creative African Network, to a demanding brief, focused on Africa’s unique visual identity and culture. The exhibition charts the artists’ journey, inspiration, and design process, demonstrating howAfrica’s culture and history can be captured in both an artwork and a corresponding sportswear design.

The exhibition will feature original artwork and sketches alongside development work and the resulting final football kits created by the artists involved, including Barthélémy Toguo ofCameroon, Zineb Zedira ofAlgeriaand Godfried Donker ofGhanawho have all become renowned in the art world for their emotive and captivating work. The other artists representing their nations are: Saïdou Dicko ofBurkina Faso, Ernest Düku ofIvory Coast, Owanto of Gabon, Hentie van der Merwe ofNamibia, Samba Fall of Senegal, Hasan and Husain Essop ofSouth Africaand El Loko ofTogo.

Alex Newson, Exhibition Curator,DesignMuseum,Londonadds, “As a design challenge, creating a new national football kit is a complicated and demanding brief. The results of the collaboration between PUMA and the group of celebrated artists are remarkable and testament to the talent, pride and passion evident in both African art and football and this exhibition charts this unique journey.”

The exhibition is open for public viewing from November 8 – 27, 2011, 10.00am – 17.45pm.

Continuing with a partnership that started in 1998, PUMA will remain the official supplier of playing kits, training and representation apparel and equipment for all associated Swiss national teams, including the National A, Youth, Women’s and Futsal teams. PUMA will also extend its active partnerships of various SFV grass roots and youth initiatives, including the Credit Suisse Football Academies.

Today in Feusisberg, Switzerland, PUMA also unveiled the new home playing kit for the Swiss National Team. Part of the Power 12 range of PUMA kits that includes Italy, Uruguay, Czech Republic and Austria, the Switzerland kit is unique as it incorporates the Swiss flag on the shirt, shorts and socks, in addition to the SFV badge. Engineered mesh at the front of the shirt increases breathability and a technical fabric greatly improves moisture wicking tendencies.

Franz Koch, CEO of PUMA SE said, “We are delighted to extend and deepen our partnership with the Swiss Football Association. The SFV’s work and commitment to the development of football at all levels in Switzerland is very impressive, evidenced by both the Switzerland U17 team winning the FIFA U-17 World Cup last year and the U21 team reaching the final of the UEFA U21 Championship earlier this year. We are proud to be associated with SFV, as they strive to build on these successes in the coming years.”

Alex Miescher, General Secretary of SFV commented, “The SFV has enjoyed a highly successful partnership with PUMA over a 13 year period, and we are thrilled to announce the continuation of this relationship. PUMA’s proficiency in developing technical performance playing and training apparel is second to none, and their support in the development of our grass-roots and youth programmes has been instrumental. They are the perfect partner for the SFV in every respect, and we very happy to continue with them.”

In addition to the SFV, PUMA also partners with Swiss international players Johan Djourou, Stephan Lichtsteiner, Diego Benaglio and Xavier Margairaz.

Furthermore, in acknowledging the PUMA EP&L today as an innovative sustainability approach, the PPR Group, PUMA’s majority shareholder, announced that this groundbreaking economic valuation methodology1 for a company’s environmental impacts will be implemented across its Luxury and Sport & Lifestyle brands by 2015.

After publishing an economic valuation of € 94 million of GHG emissions and water consumption in May this year2, PUMA has now finalised its 2010 E P&L by adding € 51 million caused by land use change for the production of raw materials, air pollution and waste along its value chain. Only € 8 million of the € 145 million total derive from PUMA’s core operations such as offices, warehouses, stores and logistics while the remaining € 137 million fall upon PUMA’s supply chain. These costs, which will not affect PUMA’s net earnings, will serve as an initial metric for the company when aiming to mitigate the footprint of PUMA’s operations and all supply chain levels.

“The unprecedented PUMA Environmental Profit and Loss Account has been indispensible for us to realize the immense value of nature’s services that are currently being taken for granted but without which companies could not sustain themselves,” said Jochen Zeitz, Executive Chairman of PUMA and Chief Sustainability Officer of PPR. “At PPR HOME, we view the PUMA EP&L as an essential tool to help drive PPR’s sustainability development across its Group of brands because analysing a company’s environmental impact through an E P&L and understanding where environmental measures are necessary will not only help conserve the benefits of ecosystem services but also ensure the longevity of our businesses. The results of the PUMA E P&L underpin the urgency for a paradigm shift in the way we all currently do business and I have been pleased to also see that the release of PUMA’s first results has generated widespread interest among governments, corporations, NGOs and academics.“

The PUMA E P&L and the associated methodology3 were developed with the support of PricewaterhouseCoopers LLP and Trucost PLC, using recognised ecological and economic techniques and building on a large volume of work in the fields of environmental and natural resource economics. The valuation of the overall results shows:

• PUMA’s supply chain is responsible for 94% or € 137 million of its total environmental impact.

• Over half (57% or € 83 million) of all environmental impacts are associated with the production of raw materials (including leather, cotton and rubber) in Tier 4 of PUMA’s supply chain4.

• Only 6% or € 8 million derive from PUMA’s core operations such as offices, warehouses, stores and logistics; a further 9% (€ 13 million) occur in Tier 1, with the remaining 85% (€ 124 million) in Tiers 2-4.

• GHGs make up 90% of the total impact of PUMA’s offices, stores and warehouses.

Alan McGill, partner, Sustainability and Climate Change, PwC, said: “These values are enough to make any business pay attention. The PUMA E P&L offers a real insight into the environmental consequences of commercial decisions and at the same time highlights potential commercial consequences of the environmental realities unfolding around the world. This will make many companies consider how they can apply similar analysis in their own organisations. Companies – big and small – are now reliant on global supply chains, making their environmental footprint much larger than many realise. Assigning economic values to the environmental impact of a company’s operations enables a business to tackle vital questions now, not just about environmental impacts, but business risk, costs savings and finding new ways to become more effective. Without measuring them, the impacts cannot be managed, or reduced.”

E P&L Results Break-Down

Water Use and Greenhouse Gas Emissions

The impacts of water use and GHGs were found to be roughly equal, together making up just under two thirds of the overall impact (around € 47 million each)5. (For more details, please refer to the press materials of PUMA’s May 2011 announcement on http://about.puma.com/?p=6644)

Land Use

Negative impacts on biodiversity and ecosystem services as a result of land-use for agriculture and buildings in PUMA’s supply chain are valued at € 37 million or 26% of the total E P&L. More than any other impact these costs are concentrated in Tier 4 with just 1% arising in PUMA’s operations and Tiers 1-3. Because leather is used extensively in footwear – PUMA’s dominant business line – and it is the most land extensive raw material that PUMA sources, the use of leather is the greatest single factor contributing to impacts on land-use. As a result, footwear accounts for € 34 million or 91% of the overall land-use impact.

Air Pollutants

The environmental damage caused by air pollution (particulates, ammonia, sulphur dioxide, nitrogen oxide, Volatile Organic Compounds (VOCs) and carbon monoxide) amounts to € 11 million, representing 7% of the E P&L total. Tier 4 is responsible for the lion’s share of the air pollution impact, valued at just over € 4 million. The single most significant contributor to this impact is ammonia emissions from animal waste and fertilisers used in agricultural processes.

Waste

The environmental impact caused by waste generation (landfill and incineration) is valued at € 3 million, representing 2% of the total PUMA E P&L. More than half of this derives from Tier 1 with some 21,000 tonnes of waste, followed by Tier 2 suppliers with some 8,000 tonnes and PUMA Operations with some 6,000 tonnes of waste. The vast majority of PUMA’s overall waste is produced in Asia / Pacific where most of PUMA’s suppliers are located.

Dr. Richard Mattison, Chief Executive Officer, Trucost said: “The current era of volatile resource prices, growing consumer and investor interest and greater regulatory standards mean that environmental issues are increasingly core to the business strategy. Water supplies, access to raw materials, a stable climate and clean air are vital to business operations, but many companies struggle to assess these issues due to their long and intricate supply chains. The Environmental Profit and Loss Account approach provides a robust framework to help companies unlock this complex challenge and embed sustainability at the heart of business decision making. PUMA has demonstrated that accounting for the environment is no longer a ‘holy grail’ objective, but simply makes good business sense.”

Responses to the PUMA 2010 Environmental Profit and Loss Account

The PUMA E P&L findings from 2010 have revealed that the lion share of PUMA’s environmental impact occurs within its supply chain of external partners, which the company has limited control over. In order to reduce the environmental impact at the lower end of the supply chain, PUMA is dependent on the cooperation of other industry players. To tackle this issue, PUMA has already started to gain support from national governments, environmental organizations, and representatives of science and industry to push for a shift in the current business paradigm towards a more sustainable approach; one that acknowledges the indispensible services provided by healthy ecosystems and respects their limits. The first step to achieving this change requires the services to be given monetary values in order to account for them when doing business.

At the same time, PUMA has started to implement solutions at its Tier 1 suppliers and within its own operations, where the company is able to provide support for change, independently.

Jochen Zeitz commented: “Reducing the environmental impacts that derive from PUMA’s supply chain represents a real challenge for us, as we have limited control over these activities and on further Tiers, suppliers can be shared by thousands of companies. However, we recognise that in order to make a real change we, along with our industry peers, have to work responsibly to help reduce the impacts of external supplier factories and raw material producers. In addition to driving innovation in various areas along our own supply chain and with our consumers, we also need the support of policy makers and the engagement of the whole industry to implement a new model for businesses that works with nature rather than against it and ultimately supports social and economic sustainability.”

Raising Awareness Among National Governments, the Industry and Science

The release of the initial E P&L results in May generated extensive media coverage and attained significant interest among governments, industry peers and international organizations.

Having been nominated as a co-opted member of the German Council for Sustainable Development, which advises the German government on sustainability issues, Jochen Zeitz presented the results and benefits of the PUMA E P&L to 15 Council members and a representative of the Federal Government last month. As a result, the council will launch a project that aims at implementing standards for PUMA’s environmental accounting statement and will promote the E P&L approach as an innovative practice in public debates.

The UK government featured PUMA’s groundbreaking analysis as a best practices case study for sustainable business in the Department for Environment, Food and Rural Affair (DEFRA) Natural Environment White Paper in June 2011. White papers are documents produced by the UK government setting out details of future policy on a particular subject, often forming the basis for legislative reform.

Also, the Co-Chair of the Investment Commission and Treasurer for the UN Environment Programme Financial Initiatives referred to the PUMA E P&L when speaking at the 2011 UNEP Financial Initiatives Global Roundtable in Washington last month. Further references have been made by sustainability experts Pavan Sukhdev6 and John Elkington7, the Harvard Business Review8, the Stanford Social Innovation Review9 and the World Business Council for Sustainable Development to name but a few.

Stepping up internal Resources at PPR and PUMA

In support of these findings, PPR and PUMA have stepped up their internal resources, hiring additional staff on a group level as well as within the PUMA.Safe team in order to address the challenge of reducing the environmental impact. On a corporate level, PPR is adding an Energy Management Specialist to its sustainability team, who will immediately begin to investigate opportunities for reducing Greenhouse Gas emissions. PPR has also hired a Conservation and Ecosystem Services Specialist who will be investigating the development of broadly-accepted definitions of sustainable cotton and rubber and internal standards for their sourcing.

To better target and focus its efforts, the PUMA.Safe team, which ensures that supplier factories adhere to PUMA’s social and environmental standards, has created both a Humanity and an Ecology team. Five additional environmental and social auditors will be joining the existing 13 employees in the PUMA.Safe team, so that environmental impacts at PUMA’s Tier 1 and Tier 2 suppliers can be better addressed and solutions for their reduction more rapidly developed. PUMA is also hiring a Chemical Engineer to look at solutions to identify more sustainable materials as well as supporting PUMA in phasing out harmful substances within the supply chain.

Developing synergies and partnerships

PUMA and PPR HOME have shared 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 and eco-system services within corporate supply chains into account. Furthermore, PUMA has collected information on the environmental performance of suppliers which can be used to provide benchmarks for supplier performance targets and the sharing of best practice. PPR HOME will also leverage the lessons learned during PPR’s Group EP&L implementation stages in order to provide case studies across the Group’s companies and brands to assist in broader adoption among businesses.

Building Capacity to Penetrate the Supply Chain

PUMA has already stepped up its capacity building programme for its suppliers such as the CONSERV project at apparel and footwear factories in Vietnam. The project, which was launched in cooperation with the German investment and development organization DEG and international capacity building organization Assist Asia, will support the factories of Tier 1, Tier 2 and Tier 3 suppliers to reduce greenhouse gas emissions, secure availability of natural resources and minimize the risks from waste and pollution through the implementation of resource efficiency practices.

Rinaldo Sagramola, Palermo Football Club CEO confimed the new agreement by saying, “We are proud to be entering into this partnership with PUMA, and look forward to working with them from the 2012/13 season in prospect. PUMA has such credibility in the development of high quality performance football apparel, and the sales and distribution of licensed products, this new partnership is one that will significantly benefit Palermo for years to come.”

PUMA currently partners with several International football federations including Italy, Czech Republic, Switzerland, Uruguay, Chiles, South Africa, Cameroon, Ghana, Ivory Coast, Algeria. The sportlifestyle brand also has a strong player portfolio in football that includes Gigi Buffon, Giorgio Chiellini, Samuel Eto’o, Cesc Fabregas, Sergio ‘Kun’ Aguero, Radamel Falcao, Yaya Toure,Thierry Henry, Nemanja Vidic, Mario Gomez and Marco Reus.

The new Palermo Club Football Kit will be launched by PUMA in advance of the 2012/13 football season.

This new partnership, effective from 1 February 2012, will see PUMA benefit from prominent branding locations on all BMW Motorsport racing cars and all Race and Teamwear for BMW Motorsport technical staff. With BMW re-entering the DTM racing class in 2012 following an illustrious history in GT car racing, PUMA will outfit drivers Martin Tomczyk, Bruno Spengler, Andy Priaulx, Augusto Farfus, Dirk Werne and Joey Hand with the latest innovations in fireproof technology.

In 2004, PUMA first partnered with BMW Motorsport, through its involvement with the BMW Williams Formula One team. This relationship continued when BMW acquired Sauber F1 to become BMW Sauber F1, and after BMW ceased its Formula One activities in 2009 to reorganise its activities, PUMA and BMW Motorsport have once again joined forces with this new deal.

PUMA will also develop BMW Motorsport licensed products for global sales and distribution. While existing motorsport markets in Europe are a key focus for this distribution, a strong emphasis will be placed on expanding sales performance of BMW Motorsport products in emerging markets, particularly in Asia Pacific and the Americas.

“It is great to have such a well-known and reliable partner as PUMA on board again at such an exciting time for us,” said BMW Motorsport Director Jens Marquardt. “The link between BMW Motorsport and this successful company has grown over the years and goes as far back as the 2004 season. It is hard to imagine our team and driver apparel without the characteristic PUMA logo. As a strong partner in the field of licensed products, PUMA will play a major role in ensuring that our fans around the world enjoy the products from the BMW Motorsport collections.”

Christian Voigt, Senior Head of Global Sports Marketing at PUMA said: “PUMA is delighted to once again be working with BMW Motorsport, following the successes we enjoyed with them through their tenure in Formula One. Their heritage in competitive motorsport and automotive engineering is so impressive, and their global profile derived from this makes them another strong partner for PUMA in motorsport. Through our experience in licensed product development and distribution we are fully confident this will be a successful partnership for both parties, and we hope to grow it in the years to come.”

Dr. Thomas Goerdt, Head of Lifestyle Collections in the BMW Group, added: “From 2012, BMW will be even more active and prominent in motorsport than it has been in recent years. For this reason, securing this partnership with PUMA was a priority for BMW Lifestyle right from the start. As leading sport lifestyle brand, PUMA boasts a unique wealth of expertise and proficiency in developing and distributing licensed products on a global scale. Bearing in mind the great success we have enjoyed together in the past, we are looking forward to continuing this partnership.”

2011 Fourth Quarter Highlights

• Consolidated sales totaled in excess of € 720 million, a currency adjusted increase of 15.8%
• Gross profit margin improved to 46.7% despite continuing input price pressure
• EBIT rose by over 72% to € 48.1 million
• Net earnings more than doubled to € 33.1 million
• Consequently, EPS leapt from € 0.93 to € 2.21
• Long-term sponsorship agreement signed with German football champions Borussia Dortmund
• Multi-year sponsorship of Mercedes GP Formula 1 team announced
  
  

2011 Full Year Highlights

• PUMA delivers on its € 3 billion sales target for 2011
• Gross profit margin continues to be in the upper echelons of the industry at 49.6%
• EBIT rose by 8.6% to € 333.2 million
• Net earnings rose by nearly 14% to just over € 230 million
• EPS increased from € 13.45 to € 15.36
  
  

Outlook for the Financial Year 2012

• Management is targeting high single digit sales growth in 2012.
• PUMA enters the second year of its “Back on the Attack” strategy, continuing with the execution of selective investments into the growth drivers.
• Management foresees an improvement of net earnings in mid single-digits for the full year.
  
  

“I am pleased to see that our sales and earnings performance in the financial year 2011 bear testament to the fact that PUMA is “Back on The Attack”, and that our 5-year growth plan is already having a positive impact”, said Franz Koch, CEO of PUMA SE. “We managed to surpass our sales target this year, eclipsing € 3 billion in sales for the first time, while PUMA’s net earnings also beat management’s expectations. With the support of a strong sports marketing portfolio we are well on track to explore the opportunities of the sports year 2012 as well as achieve our 2015 goal of € 4 billion in sales. We expect a sales increase in the high single digits for this year.”

Americas region drives sales growth in the fourth quarter

PUMA’s fourth-quarter consolidated sales rose strongly to over € 720 million, up 15.8% currency adjusted and 15.6% in Euro terms when compared to last year, and surpassing all of PUMA’s previous fourth quarter results. This exceptional performance was once again underpinned by all regions, despite the continued economic uncertainty stemming from the Euro-zone debt crisis, which continued unabated during the last three months of 2011.

PUMA excelled again in the Americas, where sales grew by 27.8% currency adjusted to € 271 million. The Latin American market continued to be a significant growth driver for PUMA, and Motorsport remains the top performing category in the region. The situation in the US improved, and sales accelerated during the fourth quarter, while PUMA’s lifestyle products in particular resonated well with consumers.

Despite reluctant consumer behavior amid the Euro-zone debt crisis, EMEA sales rose by 8.3% currency adjusted to € 237 million. The UK and France performed well, while Russia was at the forefront of improved performance in Eastern Europe. Lifestyle products in particular continued to perform well, while our participation in the Volvo Ocean Race boosted sales in PUMA’s Sailing category. Fitness also posted significant growth rates.

Sales in Asia/Pacific improved by 11% currency adjusted to € 212 million. PUMA’s football shoes and lightweight running products, especially our FAAS range, continued to stand out, while growing demand came from outdoor products in the region. Results in Japan, India and Korea remained very strong while China grew at the expected rate.

PUMA’s performance in terms of segments mirrors that of the regions, in that all of them contributed strongly to the impressive performance. Footwear sales came in at € 339 million, an increase of 11.4% currency adjusted. Apparel grew by 12.7% currency adjusted to € 275 million and Accessories, including the consolidation of Cobra Golf, performed very well, up 43.6% currency adjusted to € 107 million.

Gross Profit Margin improves

In the fourth quarter, PUMA’s gross profit margin was 46.7%, up from 45.4% last year. The gross profit margin for footwear increased from 43.4% to 46.6%. Apparel retreated from 47.0% to 45.9%, whereas Accessories rose to 49.0% from 48.4%. This increase stems from the overall product mix and an acceptance of the selective price rises indicated previously by PUMA and implemented in the fourth quarter of 2011.

Fourth quarter operating expenses rose in line with our growth strategy, by 18.4% to € 292.3 million, and was equivalent to 40.6% of sales, up from 39.6% for the same period last year. This increase derives from the further investments under the aegis of our “Back on the Attack” strategic growth plan. Additional funding in IT, the supply chain, marketing and product has grown as planned, as we continue to aim for the targets set out at the end of 2010.

EBIT was up 72.6% in the fourth quarter, at € 48.1 million. This represents 6.7% of consolidated sales and is above last year’s ratio of 4.5%.

The financial result declined from € -1.2 million to € -8.9 million, largely as a result of foreign exchange impacts relating to financing activities.

EBT in the fourth quarter was up 47%, from € 26.7 million to € 39.3 million.

Net Earnings excel with a 137% improvement

Net earnings rose by € 19 million to € 33.1 million, a notable increase of 137%, meaning that earnings per share followed suit, up to € 2.21 from € 0.93 (diluted earnings € 2.21 per share versus € 0.92 last year)

PUMA achieves its goal of € 3 billion in sales for the Full Year 2011

“Back on the Attack” growth plan already having a positive impact

Much of PUMA’s success in 2011 can be attributed to its long-term strategic growth plan “Back on the Attack,” launched in autumn 2010 and implemented from the beginning of last year. PUMA’s annual results attest that this roadmap, which aims to unlock our long-term brand potential of € 4 billion in sales by 2015, has already had a positive impact on the company’s performance during 2011. One aspect of this strategy is increasing PUMA’s brand desirability by differentiating PUMA’s Performance and Lifestyle categories.

In 2011, we strengthened PUMA’s roots in performance, particularly in football, by significantly expanding the sports marketing portfolio of brand ambassadors. PUMA signed Sergio ‘Kun’ Agüero and Yaya Touré of Manchester City, Radamel Falcao of Atlético Madrid and Cesc Fàbregas of Barcelona. They will all feature as central figures in our global marketing campaigns in the coming years. PUMA signed up the reigning German football champions, Borussia Dortmund, to a new partnership as well as the South African Football Federation, the host of the next African Cup of Nations. With a portfolio of 12 African teams, we remain the leading football sponsor on the African continent. All these strategic moves underline our ambition to be the clear number 3 brand in the world of football.

Record sales increase to more than € 3 billion

Consolidated sales for the Full Year climbed 12.1% currency adjusted (11.2% in Euro terms) to just over € 3 billion. With this record result, PUMA has achieved its sales target for the full year.

Regions

Once again, all regions contributed to this excellent performance. Sales in EMEA rose by 7.7% currency adjusted to over € 1.31 billion. EMEA therefore accounted for 43.6% of total sales compared to the 2010 number of 45.1%. In the Americas, sales increased by 17.7% currency adjusted, equal to € 967 million and equal to 32.1% of total sales. Sales figures improved in every country in the region. Asia/ Pacific also recorded a double digit increase, with sales topping € 730 million, a currency adjusted increase of 13.3%. This was equivalent to 24.3% of total sales.

Segments

In terms of segments, Footwear continued to thrive, growing 9.9% currency adjusted to € 1.54 billion. Apparel rose at the same rate, surpassing the 1 billion Euro mark for the first time.

Accessories posted an impressive 27.3% currency adjusted increase, up to € 434 million, after Cobra Golf had been integrated for a full year for the first time in the financial year 2011.

Retail sales rise by € 45 million

Of the total consolidated number, retail sales were € 515 million or 17.1%. This is an increase in absolute terms of € 45 million, but a slight decrease from 17.4% of total sales in 2010. As part of our growth strategy, we are still aiming for 20% of sales to be recorded in our own retail.

Gross profit margin remains stable

For the full year, gross profit margin is stable at 49.6% (prior year: 49.7%). This was achieved in the face of higher wage pressures and increasingly volatile commodity price movements. The Footwear margin rose slightly from 48.9% to 49.1%, Apparel dropped a percentage point to 49.6% and Accessories moved up one percentage point, to 51.6%.

Operating expenses

Full year operating expenses were up, by 14.8% to € 1,178 million, in line with the “Back on the Attack” growth strategy. Marketing & Retail rose by 9.8% to € 550.7 million, but dropped slightly as a percentage of sales to 18.3%. Other Selling Expenses rose in line with sales to € 387.1 million. As envisioned under the plan, RD&D expenses rose by 21.0% to € 77.0 million, and General and Administrative expenses rose by 31.8% to € 195.3 million, due to continued investments in infrastructure and systems to build the platform for future growth. This caused the expense ratio to rise from 5.5% to 6.5%. In addition, the Company reported other operating income of € 32.2 million, compared to € 35.5 million in 2010.

Earnings

EBIT rose by 8.6% to € 333.2 million. As a percentage of sales, EBIT was 11.1% for 2011, as compared to 11.3% for 2010.

The financial result for 2011 came in at € -12.8 million versus € -5.3 million in 2010. Interest income rose by € 0.8 million to € 5.2 million, while foreign exchange rate fluctuations related to financing activities led to a negative result of € 6.9 million which did not occur in 2010. Other financial expense related items increased by € 1.4 million this year.

Full year EBT rose, by 6.3% from € 301.5 million to € 320.4 million. Tax expenses declined for the full year, by 9.4% to € 90.0 million. The tax ratio was therefore at a normalized rate of 28.1%, compared to 32.9% in 2010.

For the full year of 2011, net earnings jumped 13.8% to € 230.1 million, from € 202.2 million last year. EPS increased strongly, by 14.2% to € 15.36.

Net Assets and Financial Position

Equity

Total assets (as of December 31, 2011) stood at € 2,581.8, an increase of 9.1% from last year’s € 2,366.6 million. Inventories and trade receivables were the main contributors. The equity ratio rose from 58.6% to 62.2%, which indicates continued improvement in our capital base. In absolute figures, shareholders’ equity increased by 15.8% from € 1,386.4 million to € 1,605.2 million.

Working Capital

PUMA’s overall Working Capital increased by 32.0% to € 534.0 million. Inventories rose by 22.1% from € 439.7 million to € 536.8 million, which was necessary to accommodate our planned sales growth, and also a consequence of higher procurement prices which, amongst other things, led to this increase. Trade receivables also increased, up 19.3% from € 447.0 million to € 533.1 million as a result of our strong sales performance, particularly in the fourth quarter. Trade payables also rose strongly by 25.3% to € 431.4 million, partly balancing the increase in Working Capital.

Cashflow/ Capex

Free Cashflow for the full year dropped slightly to € 16.8 million versus € 17.1 million in 2010. With regards to our Capex, PUMA’s outgoings increased by 28.9% to € 71.1 million. As already discussed, this increase is almost entirely derived from investments in line with our growth strategy, into supply chain improvement, IT systems and the ongoing expansion of our retail store portfolio. Payments for acquisitions fell by almost 60% to € 44.2 million, as the 2010 number included PUMA’s purchase of Cobra Golf. The purchase of the outstanding stake in our China business from our joint venture partner accounted for the majority of acquisition payments made in 2011.

Cash Position

Total cash (as of December 31, 2011) fell by 6.5% to € 448.2 million. Bank debts were reduced by 18.0% to € 35.1 million. The net cash position decreased 5.4%, from € 436.8 million to € 413.1 million.

Dividend

The Administrative Board will propose to the Annual General Meeting on April 24, 2012, that an increased dividend of € 2.00 per share (€ 1.80 in the previous year) be paid for the financial year 2011, due to the improvement in net earnings and in spite of a flat free cash flow.

Share buyback

PUMA did not activate its share buyback program during the fourth quarter of 2011.
As of the balance sheet date, PUMA owned 147.831 of its own shares, equal to € 32.6 million.

Outlook

Management believes that PUMA can achieve increases in sales in the upper single-digit range in each of the next two years. This growth will be fuelled by further investments into marketing, product design and development, structure in emerging markets as well as the optimization of processes, organization and systems. Assuming moderate input cost inflation, combined with necessary operating expense increases, net earnings are expected to improve in the mid-single digit range for both years.

PUMA can also confirm that its supplier Kaoway Sports Ltd. had agreed last Friday – prior to the unrest taking place outside the premises of Kaoway Sports Ltd. – to meet the collective demands of workers in this Cambodian region. According to this agreement, Kaoway Sports Ltd. will provide a monthly transportation subsidy of USD 10 and a daily subsidy of USD 0.50, effective March 1, 2012.

PUMA is currently in the process of hosting several meetings with other non-governmental organizations and trade unions this week to discuss solutions for the ongoing conflict in the country so that the safety and well-being of the employees in its supplier factories is ensured and working conditions meet PUMA’s mandatory standards.

Kaoway Sports Ltd. will resume work on Friday after all personnel have been evacuated from the compound to ensure the employee’s safety and workers were sent home.

Building on a successful nine year relationship, PUMA has significantly deepened its contractual involvement with the FIGC to place a global emphasis on expanding the profile and commercial potential of the FIGC brand driven by its newly established international sports licensing division. This evolution sees the FIGC partnership become the most comprehensive in the global PUMA football portfolio, and gives PUMA the scope to substantially increase its licensing opportunities that exist through one of the most prominent and successful federations in world football.

Franz Koch, CEO of PUMA said, “We have enjoyed a highly successful relationship with the FIGC over the past nine years, and as such we are delighted to have reached this new agreement and considerably expand our partnership with them. It underlines PUMA’s reinforced commitment to further strengthen its position as one of the top 3 football brands because the Italian National Team, more than any other national team property in world football, perfectly embodies PUMA’s unique Sportlifestyle positioning. Holding the Master License of the FIGC enables us to elevate our work with them to a truly global level; this is a new venture for PUMA, and one that we are fully confident will be successful.”

Today in Genoa, PUMA also launched the new Italy away kit. Part of the Power 12 range of PUMA playing kits that includes Uruguay, Chile, Czech Republic, Switzerland and Austria. The FIGC Italia Away shirt has a regular fit with a classic look, re-introducing the horizontal blue stripe for the first time since 1974 – a signature feature that stretches across the chest enhancing the breathable performance of the shirt. The V neck has a double layer in mesh fabric and contrast colour inside, while the underarm range of movement mesh allows both a better fit and a more comfortable arm movement. The deep cuffs in shell fabric add to the classic look of the shirt, and the number and lettering features the PUMA Gaffer font-type.

Giancarlo Abete, President of the FIGC commented, “PUMA has been a great partner for us, and we are very happy to not only continue but also deepen our relationship with them. Their licensing expertise, ideas and commitment to expanding the commercial potential of this partnership are impressive, and have led us to create this new contract. PUMA’s proficiency in design, marketing and global sales distribution is among the best in the industry, which gives us great confidence for the future.”

In addition to the Italian Football Federation, PUMA signed a new partnership with the South African Football Association (SAFA) last year and extended its partnership with the Swiss Football Association (SFV). The global Sportlifestyle brand continues to partner with Italian internationals Gianluigi Buffon and Giorgio Chiellini, and recently added Cesc Fabregas, Sergio Aguero, Radamel Falcao, and Yaya Toure amongst others to its portfolio.