Christian Voigt, Senior Head of Global Sports Marketing for PUMA commented: “This new relationship with RCD Espanyol is another positive move for PUMA, as we are actively working to expand our brand presence in Spain. La Liga also is considerably important within the global football market and a key focus for PUMA as we continue to grow our performance sport category portfolio in line with our ‘Back on the Attack’ strategy. This partnership with RCD Espanyol is a further step in asserting our position as the clear number three football brand.”

PUMA Spain General Manager Javier Ortega said; “PUMA and RCD Espanyol have a similar brand ethos and share many of the same values. RCD Espanyol defines itself by the strength of emotion (La Força Dún) a sentiment also embodied within PUMA through our brand values of joy, enthusiasm and passion. We are excited about this new partnership and the prospects it holds. RCD Espanyol will be a prominent focus in our marketing activations for the 2012/13 season and beyond.”

Joan Collet, CEO of RCD Espanyol added, “PUMA will supply all our teams, including the juniors, womens and veterans, enabling Espanyol to strengthen the licensing and merchandising opportunities that can only come from working with a world leading brand. As a club, we are very proud to have formed this partnership with PUMA”.

August Newton, RCD Espanyol Marketing and Communication Vice President further stated, “There is a great satisfaction within the Board of Directors, led by President Ramon Condal, to have confirmed this partnership with PUMA. We are confident it will be very fruitful. The ‘Perico’ fans have always shown great appreciation for PUMA and will welcome PUMA into their home, the home of those with a passion for football.

WORLD’S FASTEST MAN INSPIRES FASTEST PERFORMANCE

Products in the ‘Year of Speed’

PUMA is proud to introduce evoSPEED, the groundbreaking performance collection that for the first time in the Sportlifestyle brand’s history, features product offerings for all PUMA sport categories. Inspired by the Usain Bolt – the World’s Fastest Man, the collection answers every athlete’s need for speed by taking performance technology and innovations and incorporating them in footwear and apparel developed for running, football, motorsport, golf, cricket and indoor sports. evoSPEED will be available from 1 June 2012.

Designed under the criteria of “light, flex, and fit”, all evoSPEED footwear features lightweight materials, increased flexibility and an optimized fit that enables a greater freedom of movement without compromising support, to enhance speed. For the first time in PUMA’s history, the classic Formstripe has been changed and a new lightening version, a signature graphic that emphasizes speed and harkens back to Usain Bolt, will be featured on the complete evoSPEED footwear collection.

The evoSPEED styles will be worn by PUMA’s key athletes in running (e.g. Usain Bolt), football (e.g. Sergio Aguero), motorsport (e.g. Fernando Alonso), golf (e.g. Rickie Fowler), cricket (e.g. Yuvraj Singh) and indoor sports (e.g. Luc Abalo) this summer and beyond.

Running

Inspired by the competitive performance spikes that Usain Bolt will be wearing during the 2012 Diamond League and at the Olympic Games in London, the BOLT evoSPEED Runner is a light, breathable and flexible trainer built to enhance speed. Through evoFOAM, a lightweight midsole cushioning, this trainer offers a fast, responsive and smooth ride. The BOLT evoSPEED Runner upper also has a modern and fresh aesthetic, to bring a strong lifestyle appeal to the track.

 

Football

Part of this cross category collection is the evoSPEED 1 FG, which will be worn by PUMA’s top football players including Sergio Aguero, Radamel Falcao and Mario Gomez. The next generation in PUMA’s Speed silo, the evoSPEED 1 FG is one of the lightest boots in the market and is designed to help players achieve top speed. The upper features a soft and ultrathin microfiber material whilst stability is provided by the internal EverFit cage. The anatomically engineered lightweight one-piece outsole provides stability and support, utilising high-tech materials to minimize weight and to maximize its flexibility and reactivity. The evoSPEED 1 FG features an external heel counter which secures an excellent heel fit and the new PUMA evoAptoLast which provides an industry leading fit.

 

Motorsport

The evoSPEED Mid is the newest style in the PUMA Motorsport range, and took its inspiration directly from the Formula 1 race track and the performance of World Class drivers such as Fernando Alonso of the Scuderia Ferrari F1 Racing Team. The shoe features a full EVA comfort midsole, an internal EverFit cage for enhanced fit, and a heel wrap up for better grip. For extra durability, a rubber spray toe-cap has been added. The minimalistic pattern piecing and the asymmetrical lace system showcase the focus on function for this style.

 

Golf

For the golf category, speed is represented with the FAAS Trac evoSPEED. The latest PUMA Golf shoe will be worn by COBRA PUMA GOLF superstar Rickie Fowler at the U.S. Open and other 2012 golf tournaments. As with the other evoSPEED collection styles, the FAAS Trac evoSPEED provides maximum flexibility to enhance a 360° movement as well as very lightweight materials. These light and highly functional materials deliver unmatched protection through extremely durable waterproofing, taped seams and high breathability to shield the athlete from external forces. The outsole combines directionally molded S2Quill spikes with replaceable S2Quill spikes for ultimate grip on the course. The spikes are situated within a stepped outer frame with additional traction elements to provide a stable, supportive platform. The FAAS Trac evoSPEED further provides improved balance, feel and lateral stability.

 

Cricket

The evoSPEED Cricket Spike is one of the lightest Cricket spikes in the market. The upper features a soft and ultrathin material whilst stability is provided by the EverFit cage that is also being used for the football and motorsport evoSPEED Footwear styles. A mesh window gives breathability and the anatomically engineered one-piece outsole provides stability and support.

 

Indoor

An additional part of the evoSPEED collection is the evoSPEED Indoor 1 that will be worn by many international handball players such as Luc Abalo of the French national team. Matching the general evoSPEED criteria, the shoe features very light weight materials, a super flexible outsole and the EverFit cage that offers a perfect fit and support. A mesh tongue further adds breathability whilst the removable perforated sockliners provide additional comfort.

For more information, please visit www.puma.com .

The Guardian Sustainable Business Awards (GSBAs) reward best practice in sustainable business, showcasing innovative corporate initiatives that tackle the most pressing environmental and social challenges businesses face and that are part of a comprehensive sustainability strategy.

Both the “Biodiversity sponsored by Friends of the Earth” and the overall awards went to PUMA’s Environmental Profit and Loss Account (E P&L). Last year, the Sportlifestyle company published this worldwide unprecedented Environmental Profit and Loss Account for the first time, analyzing environmental factors such as water consumption and greenhouse gas emissions throughout its core business and supply chain operations. As part of PUMA’s long-term sustainability plan, the analysis was commissioned in recognition that producing and selling PUMA products has a wide impact along the entire supply chain. By identifying the most significant environmental impacts, PUMA will develop solutions to address these issues.

The designs will be worn by the entire team (men and women), including three-time Jamaican Olympic gold medallist, fastest man in the world and PUMA athlete Usain Bolt. PUMA’s partnership with Marley, the eldest daughter in the Jamaican family dynasty, underscores the brand’s long-time commitment to the Caribbean nation, with its rich cultural heritage, global music contributions and its unparalleled dedication to Athletics.

“It is truly an honor to design this collection for my home country and my home team,” said Cedella Marley. “It’s not even a dream come true because it’s something I never dreamed would be possible. I ran track in high school in Jamaica and I’m still a huge fan of Jamaican Athletics, so to have a role in creating the outfits for our Olympians is a thrill. I admire what PUMA has been doing in Jamaica over the years and the Marley family has the same type of give-back philosophy. I think this partnership is going to be legendary.”

Staying true to PUMA’s DNA of sportlifestyle, the collection incorporates high-tech fabrics and silhouettes engineered to enhance the performance of the athletes hailing from the fastest country in the world—Jamaica. Taking inspiration from the vibrant colors and patterns of the Caribbean nation as well as the African influences that have come to characterize that country, Cedella Marley’s unique designs are sure to make the world take notice in the summer of 2012.

“I can’t think of a better person to design our Olympic outfits than Cedella,” said Usain Bolt. “PUMA got that right…hooking up with a legendary Jamaican. She’s a great designer but also carries on the spirit of our nation through the legacy of the Marley family. It’s going to be inspirational to run in London with that energy surrounding me.”

PUMA’s Olympic wear will be accompanied by a lifestyle collection of apparel, footwear and accessories which will be available at PUMA retail stores globally in June 2012.

“We’ll go through a rigorous process of material selection and design to ensure the performance singlets, in particular, meet the needs of Jamaica’s world-class athletes,” continued Marley. They have to fit and feel like a second skin.”

“Cedella, the Marley family and their fun and laid back Jamaican nature are a perfect fit for the PUMA brand”, said Franz Koch, CEO of PUMA. “Cedella’s vibrant style and unique design will bring an authenticity to the Olympic PUMA collection for the entire world to see in London 2012, boosting the visibility of our brand significantly.”

Cedella Marley began designing clothes while she was on tour with Ziggy Marley and the Melody Makers, a band comprised of her brothers and sisters. Her fashion brand, Catch A Fire, named after her father’s first album, debuted in 2001 and encompasses a tailored bohemian style with vivid colors and prints. Her collections are available in upscale department stores throughout the United States. In addition to fashion design, Marley is a children’s book author and the CEO of Tuff Gong International—the record label founded by father Bob Marley in 1965. She is also the director of Marley and Company which manages Bob’s image and music rights and helms the merchandising conglomerate The House of Marley. A life-long philanthropist, Marley is currently overseeing operations for The Bob Marley Foundation and 1Love.org, which aligns well with PUMA’s own commitment to giving back.

PUMA’s investment in Track & Field in Jamaica is far and wide, with Usain Bolt being undeniably one of the brand’s greatest ambassadors. Since 2002, PUMA has sponsored the Jamaica Athletics Administrative Association (JAAA), which is the governing body for Track and Field in Jamaica, and the Jamaica Olympic Association. In addition to this, PUMA helps to foster young talent through sponsorship of seven high school track and field programs. This partnership also drives the annual ISSA Boys & Girls Track and Field Championships, dubbed “The Champs” which is lauded as the most popular sporting event in Jamaica and the place where many of the world-renowned sprinters got their start. PUMA is a partner of pre-Champs meets including the Gibson Relays and various Invitationals. Outside of the high school sphere, PUMA is the main partner of the Reggae Marathon, which takes place each December in Jamaica and draws distance runners from all over the world.

The world will be watching Usain Bolt in London 2012 to see if he will break his own record in the 100m and 200m relays, clad in Cedella Marley’s unique designs. At 25, Bolt has emerged as one of the world’s most talented Track and Field athletes in the modern era, winning three gold medals in the 2008 Beijing Olympics and smashing two world records in the 100m (9:58) and 200m (19:19) at the World Championships in Berlin in 2009. PUMA, like many Bolt enthusiasts, believes the best is yet to come.

The results of this testing confirmed that the PUMA Italy replica jersey is within all legal regulations and fully meets the standards of PUMA’s own Restricted Substances List. The amounts of nonylphenolethoxylates (NPEOs) found in the product are considerably below PUMA’s own limits laid out in the Restricted Substances List and are therefore not dangerous to health and do not represent any health hazards.

Furthermore, the report by European Consumer Organisation claims that the jersey would contain lead. PUMA’s independent testing did not detect any traces of lead.

The manufacturer of the PUMA Italy replica jersey holds a valid OEKO-TEX 100 Certificate, which indicates full compliance to the strict Oeko-Tex Standard.

PUMA considers product and environmental safety as a core priority of its business practices. Clear standards that follow the strictest local and international regulations and best practice standards for consumer care and safety are specified in the PUMA.Safe Handbook of Environmental Standards  which also includes PUMA’s Restricted Substances List. The company’s quality concept requires all products to be free of environmentally hazardous chemicals or harmful substances as defined by the Restricted Substances List which is updated on a frequent basis to ensure compliance to all relevant legislation and standards.

PUMA is an active member of the “Zero Discharge of Hazardous Chemicals” industry working group and has committed to zero discharge of hazardous chemicals for all products across all pathways in the supply chain by 2020. Alkylphenolethoxylates (APEOs) and NPEOs are similar to soaps and are being used during the dying process.

APEOs and NPEs are one of the eleven priority chemical groups, targeted by the roadmap of the ZDHC industry working group and PUMA has advised its suppliers to convert to APEO/NPE free formulations. For more information and updates on the joint roadmap projects, please visit www.roadmaptozero.com

The Management has therefore decided to speed up as well as significantly expand the scope of the company’s Transformation Program in order to streamline the cost bases and increase efficiencies in terms of organization, processes and systems. PUMA’s Management estimates that these actions will require one-time costs of up to approximately € 100 million, to be booked in the second half-year of 2012.

The Management therefore revises its previous guidance for PUMA’s 2012 net sales growth from a high-single digit to a mid-single digit rate and expects annual Net Earnings to decrease significantly from the € 230.1 million posted last year, impacted by the aforementioned one-off expense.

Further details of PUMA’s business performance during the second quarter and first half year of 2012 will be provided with the results announcement on 26 July 2012.

Performance Second Quarter 2012

• Consolidated sales increase 11.8% in Euro terms
• Gross profit margin remains stable at 49.1%
• EBIT decreases by 15.0% to € 47.1 million
• Net earnings decline by 29.2% to € 26.7 million
• EPS down from € 2.51 to € 1.78
• Scope of Transformation Program will be expanded
  
  

Performance First Six Months of 2012

• Consolidated sales grow 8.8% in Euro terms
• Gross profit margin softens to 50.2%
• EBIT reduced by 10.4% to € 149.1 million
• Net earnings decline by 12.8% to € 100.6 million
• EPS falls from € 7.69 to € 6.72
  
  

Outlook for the Financial Year 2012

• PUMA’s Management has revised its previous guidance for 2012 net sales growth from a high-single digit to a mid-single digit rate.

• Transformation Program to be extended, resulting in one-time costs of up to € 100 million.

• Management expects annual net earnings to decrease significantly after posting € 230.1 million of net earnings last year due to the aforementioned one-time expenses.

“Despite the poor consumer sentiment and challenging business environment particularly in Europe, PUMA achieved respectable sales growth in the second quarter and first half of this year,” said Franz Koch, CEO of PUMA SE. “However, pressure on gross profit margins and further strategic investments related to our ‘Back on the Attack’ plan in combination with a weakening European business impacted second quarter net earnings. We have therefore taken measures to secure sustainable and profitable growth by broadening the scope of our Transformation Program. This program is designed to reduce complexity and establish a more efficient business model, operating on a leaner cost base.”

Americas region and Accessories segment support PUMA’s second quarter sales growth

Net earnings weaker than expected

Sales Performance by Segment

PUMA’s second quarter consolidated sales grew by 11.8% in Euro terms and by 6.0% currency adjusted to € 752.9 million. Whereas Footwear sales were flat currency adjusted at € 370.9 million, with Teamsport and Running balancing the softening sales in the Motorsport and Fitness categories, Apparel sales increased by 7.9% to € 256.4 million, fueled in part by higher demand for fan wear in the Teamsport category on the back of EURO 2012. Accessories jumped by 24.3% to € 125.6 million with strong results in all regions for our Cobra Golf products and our socks business.

In PUMA’s Sportlifestyle business, the Archive Lite, an ultra-light shoe with a contemporary look that derives from the Suede and has been fused with performance technology such as the FAAS Foam and mash, continued to resonate well with consumers.

Over the first half of this year, consolidated sales improved by 8.8% in Euro terms or by 5.1% currency adjusted to € 1.57 billion. Footwear sales slowed down 1.2% currency adjusted. Apparel sales were up 8.0% currency adjusted and Accessories rose 21.5% currency adjusted, with Cobra Golf and the new Accessories joint venture in the US continuing to deliver excellent results.

Sales Performance by Region

Growth continues in the Americas and Asia

In regional terms, PUMA continued its excellent performance in the Americas with sales growing by 15.0% currency adjusted to € 278.7 million in the second quarter. Asia/Pacific posted a gain of 8.6% to € 190.6 million. Sales in EMEA declined by 3.0% to € 283.6 million, due to the difficult market environment in Europe and the weaker performance of the footwear category.

Half-year sales in the Americas rose strongly by 11.8% currency adjusted with good results across nearly all major markets. Asia/Pacific increased by 9.4% currency adjusted, supported by excellent numbers from India and Japan, while EMEA sales were down 2.1% currency adjusted with most markets not performing at the expected level, although Spain and Germany returned satisfying figures.

Sales Performance Retail

Retail posts solid growth

PUMA’s retail operations continue to provide solid growth. Second quarter retail sales were € 150 million, 22.3% ahead of last year’s € 122 million, representing 19.9% of total sales. From January to June, retail sales were up 19% from € 228 million to € 272 million, delivering 17.3% of total sales. Increased volumes at existing stores, new store openings as well as continued growth in our e-commerce business were responsible for this positive development.

Margins, Expenses and Profitability

Gross Profit Margin remains steady in Q2, but falls in H1

PUMA was mostly able to allay the effects of continued input price pressures in the second quarter. The gross profit margin stayed flat at 49.1% in the second quarter of 2012, supported by a favorable hedging impact compared to last year. However, the expected slight increase in margin did not materialize and we were therefore not able to offset higher input cost and margin pressure. Footwear rose slightly from 48.1% to 48.3% and Apparel improved from 48.9% to 49.4%. Accessories, however, fell back from 53.3% to 51.1% compared to 2011.

On a half year basis, the gross profit margin declined 70 basis points from 50.9% to 50.2%. Footwear fell from 49.8% to 48.9%. Apparel rose marginally from 51.4% to 51.5% while Accessories moved lower from 53.7% to 51.5% due to increased golf club business, which carries lower margins.

Operating Expenses increase

Second quarter operating expenses continued to rise as set out in our growth strategy. OPEX rose by 17.0% to € 327.4 million in the second quarter of the year compared to € 279.9 million last year. Increased expenditures were necessary to support the Euro-Cup in Poland and Ukraine and first initiatives for the Olympics in London, while at the same time PUMA has been extending RD&D resources and initiatives in order to strengthen the company’s product pipeline. In addition, PUMA’s increased number of retail stores, currency impacts and the extended scope of consolidation were responsible for a considerable portion of this increase.

For the first half of 2012, OPEX rose by 12.3% or € 71.4 million from € 578.5 million to € 649.9 million, impacted by the same factors as the second quarter figures. In addition, higher costs incurred to build up the groundwork of the Transformation Program, such as standardized ERP-IT-systems and the regional supply chain initiative.

EBIT declines due to lower than expected sales and higher expenses

Operating profit declined by 15.0% to € 47.1 million during the second quarter of 2012. On a half-year basis EBIT fell by 10.4% to € 149.1 million, which represents an EBIT margin of 9.5%.

Financial Result

The financial result declined from € -1.6 million to € -3.7 million due mainly to negative currency developments. Similarly, for the year to date, the financial result moved down from € -1.8 million to € -2.7 million.

Earnings before Taxes

PUMA’s second quarter EBT was down 19.4% to € 43.3 million. The quarterly tax ratio increased from 30.0% to 33.8%.

EBT also fell for the first half of the year from € 164.6 million to € 146.4 million, representing a drop of 11.0%. However, the company reported an improved tax rate of 29.1% compared to last year’s 30.0%.

Net Earnings decline

As a consequence of lower than expected gross profit and increased expenses, consolidated net earnings decreased by 29.2% to € 26.7 million, coming in weaker than Management had anticipated. Earnings per share fell by 29.0% to € 1.78.

For the first half of 2012, net earnings weakened by 12.8% to € 100.6 million and EPS decreased by 12.6% to € 6.72.

Net Assets and Financial Position

Total assets as of June 30, 2012 grew by 10.1% from € 2,343 million to € 2,580 million, mainly due to an increase in inventories. The equity ratio improved strongly from 59.4% to 65.7% when compared to the second quarter of 2011. In absolute figures, shareholders’ equity increased by 21.8% from € 1,392 million to € 1,696 million.

Working Capital related Assets and Liabilities

Looking at assets, inventories rose by 26.1% currency adjusted or 32.3% in Euro terms to € 672.3 million. This is mainly due to the continuing expansion of PUMA’s retail store network and higher average prices per unit on stock. Trade receivables also increased by 7.0% currency adjusted or 11.6% in Euro terms to € 582.7 million, broadly in line with sales growth. On the liabilities side, trade payables increased by 10.4% to € 469.5 million.

Cashflow/ CAPEX

The Free Cashflow (before acquisitions) came in at € -57 million compared to € -9 million for the same period in 2011, with the outflows consisting mostly of working capital increases. The payments for acquisitions relate to the purchase of the outstanding Dobotex shares, effected on January 1, 2012.CAPEX increased by 17.1% to € 34 million and continued for the most part to be related to investments aligned with “Back on the Attack”, such as supply chain initiatives and IT projects.

Cash Position

The total cash position as of June 30, 2012 was reduced by 19.8% from € 352 million to € 282 million, affected by the purchase of the remaining Dobotex shares. Including bank debts, the net cash position decreased 26.6% from € 321 million to € 236 million.
 

PUMA’s Transformation Program aiming at optimizing Business Model and improving Cost Structure

Given the challenges in its European business, coupled with increasing pressure on gross profit margins and the need for continued strategic investments into brand, product and the company’s structure, PUMA’s management has decided to accelerate the Transformation Program, which began in 2011 under the aegis of the company’s five-year growth plan.

This program aims to reduce complexity, increase operational efficiencies, and streamline the company’s cost bases. At the core of the program is the setup of a new regional business model which will initially be rolled out in Europe and will then be extended to the remaining regions.

The European setup will be simplified by consolidating the number of organizational entities within Europe from 23 countries to seven areas. Areas are groupings of countries where operations and back-office functions will be further centralized while each of the individual countries will maintain their commercial functions to enable a stronger focus on the end-consumer.

Another key component of the new regional business model is the establishment of a fully regionalized supply chain, which will significantly improve order management, inventory levels and turns, as well as production flows on the sourcing side. In order to enable and benefit from these new processes, PUMA has decided to roll out a globally harmonized IT systems landscape.

The extended scope of PUMA’s Transformation Program includes the continued optimization of PUMA’s retail portfolio mainly in Europe and North America. PUMA’s retail strategy consists of the selective adding of new stores in profitable locations, particularly in Emerging Markets, while closing those that are underperforming.

In addition, PUMA will further simplify its product portfolio by significantly reducing the overall number of articles developed. In line with the new regional business model, PUMA will develop strong global and regional collections while trimming collections that are created for specific local markets. Furthermore, collaboration and endorsement contracts that are either not viable or in line with PUMA’s long-term strategy will be terminated.

In addition to the above laid-out measures, PUMA will further improve the company’s cost structure by streamlining its global and regional organization setups.

PUMA’s Management estimates that these actions will require one-time costs of up to € 100 million, which will ultimately result in higher cost efficiency and working capital improvements in the upcoming years.

Managing Directors

Klaus Bauer (57), Chief Operating Officer, informed the Administrative Board that he is not planning to extend his current contract beyond 2012 due to his personal life planning. Michael Lämmermann (50), General Manager Finance, will take on the position of Chief Financial Officer, effective January 1, 2013 and will also be responsible for Legal in addition to Finance.

Klaus Bauer joined PUMA in 1989 and became a member of the Board of Management in 2009. As Chief Operating Officer, Klaus Bauer is responsible for Finance, Legal, Human Resources, IT, Logistics and Operations. He will remain in charge of his duties until he leaves the company at the end of the year, hence ensuring a smooth transition and hand-over to both Michael Lämmermann and the successor as COO, who will be announced at a later date.

Michael Lämmermann joined PUMA in 1993 and became the Director of Controlling in 1998. He was then promoted to Chief Financial Officer and Chief Operating Officer of PUMA North America, based in Westford, USA, a role he filled for 10 years, before returning to Germany to take up his current role as General Manager Finance.

Antonio Bertone (39), Chief Marketing Officer, will also be leaving the company at the end of 2012 to pursue other career opportunities after 18 years with PUMA. Antonio Bertone will continue to work for PUMA as a consultant on a project basis, providing his skills and expertise in managing global brand and marketing initiatives to PUMA. As Chief Marketing Officer, he oversees PUMA’s global brand management and will also remain in charge of his duties until the end of the year. His successor will be announced at a later date. Antonio Bertone had been a deputy member of PUMA AG´s Board of Management since 2008.
 

Outlook for the Financial Year 2012

The above laid-out one-time costs of up to € 100 million will be booked in the second half of 2012.

Management expects PUMA’s sales in the upcoming two quarters to grow, albeit at a reduced pace due to the increasingly difficult macro-economic environment and high levels of inventory in the markets.

The Management therefore revises its previous guidance for PUMA’s 2012 net sales growth from a high-single digit to a mid-single digit rate and expects annual Net Earnings to decrease significantly from the € 230.1 million posted last year, impacted by the aforementioned one-off expenses.

“In keeping with our mission of becoming the most desirable and sustainable Sportlifestyle company, PUMA is happy to take this pioneering step forward for the retail industry.”, said Franz Koch, CEO of PUMA. “Establishing a sustainable PUMA Store underlines our commitment to reduce CO2 emissions, energy, water and waste in PUMA offices, stores, warehouses and direct supplier factories by 2015.”

“The building is a true design marvel and incorporates a host of innovative sustainability features to make our sustainable PUMA Store a one-of-a-kind retail experience”, said Rajiv Mehta, Managing Director PUMA South Asia. “We are pleased to be a pioneer in sustainability again with setting new standards for an environmentally-friendly and resource-saving store concept in one of India’s best shopping locations.”

Features that meet the highest criteria for sustainability include:

• Recycled steel from old DVD players, bicycles and tiffin boxes has been used to construct the building of the PUMA Store.
• The surface layout of the building has been designed in a way that more than 90% of the interior spaces in this store have direct access to natural daylight so that less artificial light is needed.
• The artificial lighting used in this store is energy efficient with fewer watts being consumed for the same lumen output.
• The recessed first and second floor volume generates a stack-effect for natural cooling.
• The highly insulated building shell allows for cooling without an air conditioning. Soil temperature, at a depth of about 12 feet or more stays fairly constant throughout the year and is approximately equal to the average annual ambient air temperature. The ground will be used as a heat sink for cooling in the summer and as a heat source for heating in the winter. A simple method used in this store is to pass air through the underground air tunnel.
• By maintaining the temperature at a comfortable 24 degrees Celsius, PUMA leaves it warmer than in usual retail stores and thus conserves energy.
• The sustainable PUMA Store is 100% solar-powered as solar photovoltaic cells provide 10,384 kwh units of energy a year.
• The porotherm blocks used to construct the shell of the building have been made using silt from the lakes in Kunigal. These lakes are the only source of water for villages in Kunigal and hence are desilted every year to increase the water table. The silt usually ends up as waste, but has now been used as a valuable resource in the sustainable PUMA Store.
• Under Floor Air Distribution helps to save further energy. Floor Air Distribution works on the principle that air in any particular space needs to be cooled only for the first eight feet from the floor because convection currents cause hot air to rise automatically while cool air remains at the bottom.
• The furniture and fixture in this store were made of recycled wood while low volatile organic compound paint has been used to paint the Store’s walls.
• The Store’s roof garden keeps the building insulated from the direct heat of the sun and the plants keep the temperature lower at all times.
• A special insulation foam has been implemented in the roof which cuts down heat gains by reducing conduction.
• Occupancy sensors provide automatic on/ off control so that lights are used when the room is occupied. When the space is unoccupied, the lights are automatically turned off.

The store will retail a range of products made from organic cotton as well as PUMA’s Wilderness Collection – a collection primarily sourced and produced in Africa using sustainable materials. For the first time in India, the sustainable PUMA Store also introduces PUMA’s global ‘Bring Me Back” Program – an in-store recycling program for footwear, apparel and soft accessories.

The launch event was carbon-neutral with all the energy consumed during the party being produced by customers and invitees through pedal power. This is a novel initiative whereby people pedal on a special bicycle generator that feeds into the main power source. In this way, power can be created and stored in a battery bank thereby eliminating reliance on traditional power sources.

To generate awareness and appreciation for sustainability amongst the citizens of Bangalore, PUMA has embarked upon an ambitious initiative to involve the art and design community. The brand has partnered with Trapeze Design Studio as well as young installation artists from the city to create large-format installations using waste material. These will then be put up in key locations around Bangalore city later this month as a strong message to highlight the glaring need to reuse, reduce and recycle – the cornerstone of waste minimization strategies. The aesthetic and utilitarian installations will be donated to the Bangalore Municipality and remain as permanent artworks to beautify the city-scape.

Jean-François Palus became Group Managing Director of PPR SA in 2008, and joined the Supervisory Board of PUMA in 2007 and the PPR SA Board in 2009. He was Chief Financial Officer of PPR SA, the main shareholder of PUMA, for six years. A graduate of France’s HEC business school, Jean-François Palus began his career with Arthur Andersen as an auditor and financial adviser. He joined the PPR group in 1991.

“I have come to value PUMA highly over the last five years of successful cooperation and I would like to thank Jochen Zeitz for his invaluable contribution to PUMA’s outstanding development for more than 20 years”, said Jean-François Palus. “PUMA is a fantastic brand and company with highly committed people. I am looking forward to working with management to tap into the huge potential alongside Franz Koch and his PUMA team to become the most desirable and sustainable sportlifestyle company in the world.”