On Holding AG (ONON) Earnings Call Transcript & Summary

Before we begin today's presentation and our remarks, including the Q&A, contain forward-looking statements. Actual results may differ materially from those projected. Important factors that could cause that difference are set out in our press release issued this morning in our annual report on Form 20-F for the year ended December 31, 2025, and in our subsequent reports on Form 6-K, all available at sec.gov and on our Investor Relations website. Reconciliations of the non-IFRS measures we discussed today to the most directly comparable IFRS measures are also available on our Investor Relations website at investors.on-running.com. [Presentation]

Good afternoon. A very warm welcome to Zurich to our home and of course, to our Innovation Lab. And to everyone joining in the webcast, where ever your day is right now. Thank you. Thank you for investing time and thank you for your loyalty to On.

Thank you for being with us this afternoon. Since the very first day, On has been an innovator and a disruptor. We have never stood still nor rested on our laurels. And today is no different. Encouraged by the success that we've seen over the past 16 years, and also encouraged by the rapidly growing number of fans around the world, we have formulated a bold vision for On's future, redefining what a sportswear brand can be. So here's our promise for you for this afternoon. You will leave with three things. First, you will understand the On Premium Playbook that connects everything that On does. Second, you will get the back story on the big news of the last couple of days and this morning news about new sports, news about new athletes and news about capital allocation. And third, you will see the road map to '29 that turns On into the high-quality earnings compounder in our industry.

Casper before we start, let me take you to like Kitchen years ago, almost 17 years ago and show you something. This is where the company you are invested in started. So just look at it at this weird garden hose pieces, a shaved-off shoe, three guys, I'm crouching over a kitchen table and talking about running shoe technology, and everyone said that this market was saturated, dominated, mature. People literally thought we were crazy. So our question was, what if running could feel completely different? Not just better, different, a soft landing, firm push off far less drain on the body. And could the best-performing running shoe actually was to be the best looking one, right?

We definitely believe so, David. And of course, I had also brought a spreadsheet to that kitchen. We have studied the market, and we had found something very surprising. Passion runners were investing more into their gear into their sport every year. They were basically willing to pay for progress. The most valuable customers in the category. However, there was no brands that cater to them exclusively. And I think that was the moment where it all made sense to us. We will disrupt running with innovation, and we would only sell at the premium end. And of course, [indiscernible] back then, we felt that we needed a strong mission, and we all know the power of sports. So what we set out to do is to ignite the human spirit through movement. We call this start-up, as you know, On and within 2 years, On was in 10 countries. Within 3 years, we had won first world championship title, and after 6 years On took home its first Olympic Medal in Rio. 11 years after that kitchen table, we rang the bell at the New York Stock Exchange. We were the first Swiss consumer brand ever to do so.

And so 17 years later, today, we are doubling down on what has made On special throughout. Disruptive innovation and a Premium Playbook. What is new is everything around it, the organization, the scale and the financial discipline to execute at a different level. What has not changed is the founder mindset. Restless, challenge what exists, invent what comes next. The experience to dream big and take calculated risks.

But before we look ahead, allow us a moment to look back. When we went public, we made your promise. We were going to build a much [indiscernible] company and make it more profitable at the same time. Then we set out to prove it. So today, we can say, we did. We never stopped dreaming, and we also learned to execute that skill without losing what made On different in the very first place. So think back to '21. Most people saw in us a running shoe company. We, of course, saw something much broader, but granted, it was mostly still on paper. Back then, our purposes was an emerging idea. We had just opened our first retail store in the middle of a pandemic nonetheless. The Asia Pacific region was an emerging business, and our foothold in elite sports was just taking shape. Today, On is a full toe-to-head sportswear brand. Beyond running, we have a strong business in Tennis, Training, Trail and Outdoor and also with kids with Young Movers. On is a highly desired brand on every continent of this planet. And we are closing in on 100 retail stores in the cities that matter. And as you've seen just this weekend, our athletes stand on podiums almost every weekend of the year. So here is what we promised you 3 years ago in '23 at our last Investor Day, the targets we would reach in '26. For top line sales growth, we had forecasted more than 26% compounded annual growth per year in constant currency. We now expect more than 30%, ahead of our original promise. For gross margin in '23, we promised above 60%. This year, we expect to achieve above 65%, ahead of our promise. And for adjusted EBITDA, in '23, we promised to deliver above 18% by '26. Now we expect it to be between 19.5% and 20% this year. Again, ahead of our promise. We grew bigger and more profitable, both at the same time. So notice one thing about these numbers. It's not that we grew, plenty of brands grow. It is that bottom line, structurally grew faster than the top line. That is the foundation for what lies ahead. Now of course, today is about the long term. But before we go into the details of our plan, we also want to acknowledge the more recent decisions we have taken that demonstrate On's commitments to our Premium Playbook and also to the discipline it takes in executing it. In the second quarter, we made a choice. When the market became highly promotional, we could have just followed it down that path. But as you know, we have never taken that path. So we held back sell-in rather than build inventory in the channel that could potentially compromise On's full price integrity down the line. At the same time, our teams together with our wholesale partners have emphasized strong in-store storytelling to drive a very successful back-to-school campaign. With this, we have observed a meaningful uptick in sellout momentum in U.S. wholesale versus second quarter, notably at the highest ASP and lowest promotion share of our industry. With this, as you saw in the release this morning, we are reiterating our full year '26 growth outlook in the low 20% range that we provided at Q2. The midterm outlook through '29 we are sharing today is built from that base. And Frank will share further details on the Q3 specific guidance later today.

And Casper, you know this, people ask us all the time, what makes On, On? What is the secret behind the success? And here is the honest answer. A single piece of On can be copied, a foam can be reverse engineered. And athletes can sign with somebody else, right? And a beautiful store can be built. What cannot be copied is how the pieces reinforce each other. We call that the On Premium Playbook, and it has 5 moves. One, exceptional talents and a high risk-taking culture dome, deliver breakthrough innovation, swiss engineering and our design signature. We make premium products that stand out. Two, these products earn validation from the world's best athletes and talents performing in them. We tell the stories and preference is earned not bought. And three, we then wow our customers with a premium experience across our own channels and with carefully chosen partners. And four, we protect full-price demand through disciplined commercial execution. This strengthened our best-in-class economics and superior margin profile. And five, we reinvest into the one thing that drives our relentless innovation mindset. It's our world-class people and the culture we all live at On every day. And then the loop turns better product, stronger preference, better experience, better economics, next innovation, 17 years of turning it. So simple in principle, demanding in practice, powerful because it compounds. So let us take you through the 5 moves. Move 1. It begins where On has always begun with innovation and with design. Very young brand. We have no archive, no established way of engineering and sensation. So we had to become something else. We had to become the brand from the future. Every time we start with a clean slate in material science, in structural engineering, [indiscernible] design and how the shoe is actually built. And our inspiration is the athlete. And we obsess like one over that millisecond of grant contact time, over detail, so small that the everyday runner simple fills them and the elite athlete knows, they will win the race. So innovation leads, design makes it felt, one builds performance, the other makes it visible, desirable and unmistakably On. So yesterday, we opened the doors of On Labs to you, and you were able to see firsthand, we have a very deep innovation pipeline for years to come. So On is no longer just about CloudTec. On's from competence centers that you saw creates formulas for new super foams and combines them with structural engineering. So it's chemistry and it's physics. LightSpray now brings the performance and manufacturing of footwear to a new level across all categories. And here is where this leads. Right now, in running, we are rolling out the biggest innovation cycle in On's history, not one shoe. Every major running franchise gets its next generation. The Cloudsurfer 3, will be first out of the gate. When we take what the running shoe learned and bring to the Street, then we create something special. Take the CloudTilt. Our technology translated into lifestyle. To today, one of the fastest-growing sneaker franchises in the industry and a precursor of much more to come. And the parallel you -- and apparel, you mentioned it. 4 years ago, just an emerging idea, right? Today, our fastest-growing category. Admission from here is clear. It became very clear after our fashion show this morning as well. Win with her, the woman who is redefining what sportswear is for her. So Run, Sneaker, Apparel, 3 engines, all born in move 1. So Casper, take them into the lab.

So move 2 coming up. The strongest innovation in our experience happens when a new technology meets a world class athletes. Athletes are on most demanding customers. They're as obsessed about marginal gains as our own engineers. But the technology only becomes a breakthrough on the right feet. So allow me to take you into the lab at September '23, the Paris Olympics are 10 months away. We had just developed LightSpray, a point where we felt it was ready to be applied to a product. LightSpray is a robot spraying an upper in one continuous filament in about 3 minutes. And we had a dream, what if you could win an Olympic medal in the marathon in this technology. So Olivier and the engineers, they flew to Boulder, Colorado with a few rough prototypes in the back and one mission. Convince running Superstar Hellen Obiri to build the world's fastest marathon shoe with us. Now you can imagine Hellen had many questions. Hellen had opinions, very strong views. So huge shout-out to the team, nearly 50 iterations later, she put a pair on and finally said the words we had all been waiting for. Now we have made the best racing shoe in the world. She then wore it in the Boston Marathon and won. And in Paris, she made our dream come true and won an Olympic Medal. So technology plus talent equals breakthrough. ROGER co-engineering his compact shoe, Eager winning women in Hers. [ Cyndea ] co-designing her own collection, our sprinters -- their world championship gold winners in spikes, they helped create. And most recently, Ron [indiscernible], the [indiscernible] world record in shoes, we have built together. You see the value of this validation in one number. Global brand awareness for On is now above 30%. And in the growth phase ahead, we are working towards more than 50%. So when you see a new athlete partnering with On, we actually see an opportunity to disrupt through innovation and to grow brand awareness at the same time.

So move 3, elevate the experience in how we go to market and how we manage our channels. When people want your brand, every touch point becomes a chance to make that desire stronger. So picture walking into one of our stores, the light, the materials, one shoe on a shelf, we space around it. Someone who runs talking to you about how you run. Nothing in that room is accidental. Every detail says, it's premium, and this is On. Now a question we get often, is that a store, a lost leader and that is just dressed up as marketing. And a very clear No. Our own retail is a profitable business in its own right. And so we are doubling it and planning for 100 additional stores by '29 in the most important city centers across the planet. Every one of them strengthens the brand. And every one of them is a full toe-to-head store, which is why Retail and Apparel grow as an ambition together. And the same is true for our biggest store, our website and the loyalty it builds through digital experience. And this does not stop at our own door. Our wholesale partners are carefully chosen, and we work with them on how On is presented, and we protect our premium positioning. So that where ever you meet on our site, our store, a partner shelf, it's the same brand, the same experience at the same level. And that is exactly what makes move 4 possible, right?

Yes. Let's now have a look at how the On Premium Playbook creates strong growth and best-in-class margins. Some of you may have walked in into this room with a question on your mind. Is On just a growth story? Or is there more to it? And yes, there is more to it. To be very clear, we have never pursued growth for growth's sake. Growth has always been a result of the On Premium Playbook. What we have shown year after year is that On can outgrow the industry and expand margins at the same time. And in the phase ahead, we expect to do both, again, grow faster than the industry and grow adjusted EBITDA faster than revenue. So when radically innovative products are validated by the world's best athletes, people want them. And when people want what you make, you're on pricing power. The Premium Playbook ensures that our desirability is protected by a balance of demand and supply, following a disciplined full-price strategy, carefully creating our go-to-market and our channels, no volume at the expense of the brand. And this leads to Move 5 reinvestment. The financial results overall and the margin that this discipline produces goes back into our people, our labs, our technology and into the innovation culture that fuels it. Let me talk about this innovation culture at On. This is a culture of yes. The culture or possibility beats constrained, where teams allowed to dream and to act on their dreams. Really at On, we look at it this way. Failure is not trying and falling short. Failure is never taking the shot. And this is where Olivier, David and myself we still make the biggest difference today. When boldest ideas show up, we are there and we're the ones who say yes. That together is On Premium Playbook. So in '23, in economic terms, we call the outcome of it durable growth, if you remember, as we now set out to redefine what a Sportswear brand can be. Going forward, we will aim for what we call premium growth. Through '29, On aims to become a high-quality earnest compounder.

So now, why is the opportunity ahead bigger than on? So quick question. Who in this room has already moved today. Run along the lake, the gym, a long walk to get here. Some of you are jet lagged, I give you 24 hours who has moved hands up. No pressure. Look around you. That is the shift. Sport has moved to the center of our lives. Movement is no longer a weakened activity. It's an identity every day of the week. We call this group -- and of course, now you as well with your hands up, the movement class, a generation that treats health, vitality and longevity as the new premium status symbol. And we're not the only one seeing it. McKinsey surveyed 90,000 consumers across the U.S., the U.K., Germany and China last year. McKinsey's words, wellness has become a daily practice, not an occasional purchase. And the largest cohort in that market is 1/4 of consumers with more than 40% of the spending. There were #1 buying criteria, not price, quality. Now I look at your wrist and even fingers, sport watches, rings, devices, a $60 billion market built just in the last 10 years. It spans every age bracket. And it is looking for a performance brand that deliver premium innovation and design, rings the bell, right? So as you know, multibillion-dollar brands have been built exactly at the intersection, the intersection that is at the heart of On's playbook. The vacuum cleaner that performance like a jet engine it actually looks like one and sells at 5x the category price or the computer that became a personal identity device in your pocket and on your ear. Beautiful shell innovation inside Premium Plus. Unlike the scarcity playbook of luxury fashion, which by definition is scarce, On's premium innovation playbook opens a far bigger market. That market is our opportunity. Casper. How big? How big is the opportunity?

We believe it's big and it's getting more interesting. So global sportswear generally is about CHF 350 billion. And it grows at 3% per year. The premium segment of the market sits at $125 billion today and is growing more than twice as fast. And we expect it to continue to grow faster. By some estimates, premium alone will be a CHF 71 billion market by 2030. But be not mistaken. This market is not lifting every boat. It favors performance, and it favors premium brands that stand for something specific. The premium consumer is looking for somewhere credible to go. And that consumer is also a redefining premium, less about what you own, more about how you live, spending on experiences so travel events, recreation has outpaced spending on goods for a decade. We feel that in our own numbers. Our average footwear price has moved from $145 to $170 in just 5 years, with demand growing. Meanwhile, the luxury brands have priced out some 80 million aspirational customers in the past 2 years. We're asking, where does that aspiration go? We believe will go into wellbeing, experienced at entity and into premium sportswear. The things become very obvious here. One, our addressable market is sizable and it's growing. Two, On is growing considerably faster than the premium segment of the sportswear market. And three, On is uniquely positioned to capture this growth. So when you ask about our addressable market. We define it by the movement class and everything they're here to move through their life. That is our market, and we're ready for it. Today, we will present to you how we will capture growth in our addressable market across product, brand and channels. Very simply put, in performance, we will lead with Running. In Lifestyle, we will lead with Sneaker. And in Apparel, we will lead [indiscernible].

The movement class reaches far beyond the sports we play in today. And it will be easy to chase every category. We don't. Every new sport has to come through the playbook. Look at the sequence of our last 17 years. Running an all-day footwear, outdoor and trail, tennis, training young movers, non-chosen because the category was big each chosen because we could bring something unique to that sport to the sport that, that sport did not have. And because it made On more relevant in the world and for a bigger community. Three conditions can be disrupted with our innovation and Swiss engineering? Does it build cultural relevance beyond performance and widen our market? And is it ready to be premiumized? Tennis actually passes all 3. 6 years in, Tennis posts our highest customer lifetime value, a 61% net sales CAGR since '21 and millions of people who found On who had never previously known us when we were mainly a running brand. The next chapter follows the same rule. Four days ago, we told the world On enters football. And here is what happened next. 8 billion earned media reach -- 8 billion earned media reach, Sorry, I was a little bit exaggerating, 8 billion earned media reach, the most seen story in On's history. In Mexico, 312x our baseline reach. In China, 344x our baseline reach. 50.5% share of voice in all football-related media mentions. 72% of new followers we attracted since the announcement are under the age of 35, an organic social in organic social media, over 4,000 times engagement than our comparable average. This is what football does to a brand's relevance before we have sold a single boot. This morning, you stood on real grass in a tent. So the first piece is of our football world and heard Thierry Henry and Kylian. So both incredible icons and legends. I'm not here to announce football. I'm here to tell you what it does to this company. And I'm talking about global football, not the other one. So 140 million watched the Super Bowl, 1.5 billion watched the World Club Final. A footwear market of roughly $29 billion heading for $38 billion by 2030, growing fastest in Asia Pacific and in the women's game. But again, we are not entering because the market is big. We're entering because at the premium end of the sport, there is still space open, radical innovation on the pitch, extending to the pavement and the runway. A few incumbents on the architecture of the category, they compete head-to-head. We will play a different game. And here is how we know we can build a sport, not just sign On. Look at Tennis. [indiscernible] become just an ambassador. He became a partner, an owner, a co-creator. And around him, we built the generation, right? [indiscernible] Flavio, this is how On build sport. And football starts in the same way. Thierry Henry, one of the greatest ever to play the game is our Director of Football, helping us since 2025 on our strategic entry and you heard him this morning. Kylian Mbappé the defining player of his generation, fresh off the World Cup, Golden Boot. Sydney Schertenleib, Switzerland's finest, the first of a women's roster, you will hear much more about very soon. So a builder, a legend in the making and the next generation, Caper, with Sydney, Kylian and Thierry, on our side, right, we carve our own path.

Absolutely. You want to hear why we can. Our innovation engine and you have seen the LightSpray product this morning, has given us an entry ticket nobody else holds. Quoting Sydney here. "I have never felt the ball like this before", is what she said after her very first practice in an early concept of our upcoming performance football boot that you have seen this morning. This is the disruptive power of LightSpray. On a football boot, LightSpray does something no boot has done. It puts almost nothing between the foot and the ball. As always, innovation is really at the core of our playbook. As we've just heard, football produces the most watched human beams on the planet. They hear us on the pitch, but there are cultural icons of it. Again, the On Premium Playbook in action, combining innovative products with validation in the elite performance space that then needs to translate, that will translate into culture relevance. Now picture football in our own stores and in our online channels. What we can do to our relevance with wholesale partners and to consumers that meet On for the very first time and they meet us in a new arena. Football instantly increases On awareness and relevance in many corners of the world. In South America, Africa and Southeast Asia regions, better sports is not a category, but culture, some would even say it's a religion. We're excited about football, and you will see more and more momentum building over the next months and a true market entry over the course of 2027. Now from the football page to the golf course, which looking around this room and the reactions we had this morning means the rule to quite a few of you. Roger, of course, let the cat out of the back this morning. So let me repeat in the first half of '27 On enters Golf, toe to head. It is no secret that many golfers already playing On. You might not know is that a coincidence. Or is it maybe that our Chief Design Officer, Thilo is a golf fanatic, that our President and COO, Scott Maguire, who will be here in a second group in St. Andrews, the home of golf, or that our partner, Roger now plays rather more golf than Tennis. In any case, here is the business case. Golf is the most premium mass spot sport in the world. Roughly 150 million players, over $5 billion annual spend in Golf here and a consumer who spends more per head than any other sport we play in. And it has changed since post covered, a younger, more diverse and style-conscious player is now coming on to the course. This is On consumer. So let's run you through the 3 criteria that David outlined, the 3 criteria of the On Premium Playbook that they define whether we can enter a new sport or not. First, can we disrupt with innovation? Yes, Golf footwear has barely moved in a decade. Is there culture relevance beyond performance? Of course, Golf is fashion, travel and status in one and third, do you think Golf is ready for premium? Golf was born premium. So football and golf the same reason. Bring the playbook into new arenas with products that perform at the highest level and experiences that connect course, stadium and street.

So how do we capture this opportunity? The movement class Running, Sneaker, Apparel as the immediate growth engines, Training, Tennis, Football, Golf, to build for the future. There is ample room ahead of us to run the playbook. So the rest of today is about how you operate it, how we run this business. And let me start with us. Throughout On's history, the founders have set the strategy, taken the operating decisions that matter and driven the mature growth engines ourselves. That has not changed. It is 5 years standing here as CEOs. And by Oliver, as founder and professional athlete remains absolutely instrumental at the very heart of On in innovation. But a playbook at this sclae needs a leadership bench, and ours is very, very deep. You have met many of them today. You will hear from more this afternoon. One of them is responsible for turning the playbook into daily execution across the whole company, our President and COO, Scott Maguire. Scott joined us 18 months ago after helping scale some of the world's leading premium innovation brands, again, rings a bell, right. His job is to keep strategy, innovation, product, brand and commercial execution connected and to keep us fast and disciplined as we grow. So Scott, please join us here on stage.

Thank you, David, and Casper. The bigger a company gets, you all know the easier it is to get slower to get more complex to get more siloed and to be much more interested itself that it's consumer. My job is to ensure that On does the opposite. We've been changing our operating model under one principle. Start with the consumer and work backwards. Across every function across the whole journey from the idea in the lab to the moment someone picks up a box in the store. It's not just a concept. Let me bring it to life with an example of how David, Casper and I work every day. And I've spoken to some of you about this today already. But last year, Casper and I flew to the U.S. We spent a whole day in our Run specialty store. We watched as people came in, they picked up the shoes and put them down. Some chose On and some chose others. And we went super deep on why. Some of the answers were in the product, some were in the storytelling, somewhere in the channel and even some was the information on the side of the shoebox. The store staff couldn't quickly work out what product they we're pulling we were losing out exactly when it mattered. We immediately got on the flight back to Zurich, and we put every function around that one day in that one store. And the result, a product built in record time with an engineering breakthrough we've been chasing for years, the combination of super foam and CloudTec together, the structural engineering of CloudTec. We had a whole new color pilot for that market, a new way of explaining our technology a totally different channel plan for that launch and of course, even a new label on the box. The Cloudsurfer 3 launches next month. Early feedback from running media has been exceptional. That is what our consumer-led cross-functional organization does. It turns insight into action quickly across the whole company. And it's how we're running all of the 2029 strategic plans, and it's how we'll scale faster without losing the premium playbook discipline. Every decision for us comes back to two questions. Does this make on more relevant to the consumer? And does it strengthen the economics? Casper?

Thank you, Scott. Yes. And now let's look at the economics. Let's look at about On's premium playbook aims to deliver for shareholders in the next 3 years. By '29, our goal is to add more than CHF 2.1 billion to our net sales. This will turn On into a roughly USD 7 billion global sportswear brand at current spot rates. At the same time, we aim to maintain our premium profitability profile with a gross margin of above 65%. The combination of disciplined investments and leveraging economies of scale will enable us to grow the bottom line faster than the top line in order to achieve adjusted EBITDA margins of at least 22%. Our goal is to make sure that the bottom line grows faster than the top line. We anticipate an adjusted EBITDA CAGR of above 20%. This whole team is laser focused on delivering the plan for '29. But we'll continue to apply the On Premium Playbook with a lot of discipline. The playbook has delivered. It has delivered unparalleled results in the last period, and we will keep executing it play-by-play in the future.

So this year, the team at all expects to deliver a business of roughly CHF 3.5 billion. And with the growth engines, you will see this afternoon, we have strong conviction in our premium growth path, which brings us to the question of how we use our excess capital. You may have read this morning that we are announcing a $1 billion share buyback framework over 3 years. And of course, our first priority for allocating capital has not changed. Reinvest into the business where the long-term return is highest. You heard it, innovation, product, brand, markets and capabilities. But our success now generates more capital than our strategy and premium playbook requires. Like you, we are shareholders and capital, the strategy doesn't need, it belongs to you and to all shareholders. That is the whole logic, not a substitute for growth, but an outcome of the premium business model. So 17 years ago, three people sat the kitchen table. That company is now a high-quality earnings compounder and is returning up to $1 billion to its shareholders. That is what premium growth means. Remember this 17 years ago, three people believed in this shoe. Today, millions of people in more than 90 countries believe in On. Some of them are in this building right now, and you will meet them this afternoon. Everything you have seen today, every product every category, every store is tissue, turns through the playbook again and again, not by three founders. But by a world-class team that has made the playbook its own. So if you take three things from this stage, take this. One, we've done it before, three promises made, three promises not just kept, but actually beaten. Two, the consumer, the movement class is moving toward us. And this movement class is real. It is global and it is just getting started. And three, we have the people, an innovation culture there, yes, is the default where the boldest idea gets the shot and the leadership team that turns it into results quarter after quarter. Casper, Olivier and I are here to protect that culture, but it no longer depends on us. That is the point. On has come a long way from that kitchen. And everyone in this company, founders very much included is more excited about what is ahead to anything behind us. The brand from the future, the on-premium playbook simple in principle, demanding in practice, powerful because it compounds. So dream On.

Thank you for listening to our dream and to the plan. This afternoon, it's also the proof and it belongs to the people who build the dream together with us. Scott, why don't you show us what's ahead for the rest of the afternoon.

So you have just heard the playbook from those that wrote it. And this afternoon, you're going to hear it from the people who run it and strengthen it every day. Each session connects and brings the playbook to life. First, we're going to hear from [ Katherina Berg ] on people and culture, our most important asset. And the reason we really believe we're going to deliver this plan and the premium playbook. Then innovation and design. How science-driven innovation and our design language create differentiating product and pricing power. Then community and brands. How we turn what makes On distinctive, into cultural relevance and relevance into demand. And GTM and channels. How we connect people with On through a premium experience while growing with discipline. And finally, Frank Sluis will show you the financial outcome, the real result of all this work. For these sessions, we have one ask, do not hear them as separate strategies. They are deeply connected and integrated to one another. You'll see a focus on the three immediate growth engines, and they're running through all of them. Remember, performance led by Run. Lifestyle led by Sneaker and apparel led by Her. This is where the economics of the next 3 years will be made. And the new sports, the categories we just announced will help us build the growth for decades. So with that, [ Catarina ], please.

Thank you. Thank you, Casper, David and Scott. My name is [ Katarina Barrick ]. I might pronounce it different because I'm not scottish. I head up everything talent here at On. I'm going to talk a bit about something that I'm super passionate about. And it might not be strange, with my role, if you think about that this is what I've been doing for the last 30 years. I know I'm in a room with a lot of people that is good at maths and numbers. So you already figured out that I started when i was 12. But what's unique with this company is that it's not just the person that heads up HR that is passionate about people and culture. You just heard the founder and Scott, but the whole executive team are very, very dedicated and they believe in the culture as something that will set us apart. So -- so that uniqueness is what we build and what makes us drive and find the talent for the future on an ongoing basis. So that is also what brought me here. It's more than a year since I joined this company. I worked for some epical brands and all of them, all of them said that culture was important, but none of them put people and culture first at their investment days. So this mission of ours is the reason why I came. This is the reason why most of our people come to work every day. It's something that we strive, something that really talks to us. You heard David and Casper say and also allude to some of the most or globally researchers in the world. Everybody is interested in movement. Everybody is interested in longevity and everybody is interested in health. And this is why this is important and this is why people are engaged. So at the moment, On is 4,880 people, we speak more than 110 languages and we are in 33 locations and growing. So in a fairly fast pace, we've been growing. But that means also if culture is important to you, you have to make sure that you have a structural way to grow that you are very, very deliberate on what you do and that everything that you do means something. So you can even say that you can summarize our whole existence with the 4 Ps. The people in the organization the product, obviously, in a company like this, the planet and our promise to the planet, but also profitability. But you can't do really anything with the last 3 Ps if you don't double down on your people. It's not going to move. It's not going to change. It's not going to evolve. And therefore, people and culture is truly very important to us. So everybody that works at this company are relentlessly obsessed with excellence. That is how we drive the premium pay book for us. We also I think going back, thinking about what it was when I joined here that really struck me as very unique. It's a very humble culture but we never done. right? And it's unapologetically resourceful in everything that we do and everything that we strive to achieve. We do to think differently, act differently and do things our way. You heard Casper and David say that one of the most important things that they do on a daily basis is to say, yes. It is true. But I dare to say that everybody that comes to work at On may frame it slightly different. They might say with and why not? It's the same thing as yes, we can. We dare to think different, we dare to act different, and therefore, there's a constant movement. Change is the only concept that we have, and it's all about raising the bar for all of us. So [indiscernible] culture doesn't happen by a reason, right? They are defended, but first, they are designed. You can either be a passive driver to your culture or you can lean in. You can also understand that this could be what really sets you apart. Standing still is not necessarily an option for us. And I think you, by now, since you've known us for a long time, and you've been loyal, you understand that this is part of where we're going. [indiscernible] are made to move forward. And I think the progress and everything that we build, how we attract people, how we grow people, how we engage people and also how we retain people, is very much the answer of what we do. So culture is a part of our core business. The way that we do things, the way we choose and we also think it is advantaged. So if you ask our organization and our people, which we do on a yearly basis. 87% states that they know that they contribute to On. They're proud to work here and all of you know, proud people perform. So culture of innovation, you're going to hear that word many times this afternoon, it is exactly what is unmistakenly us. Culture of innovation. If you think about it, what does that then mean, right? It is very much still for all of us an entrepreneurial mindset. Yes, we can. It is also about speed and execution. You heard Scott give many examples of that. It is innovations everywhere. It's not just in the product lab. It doesn't matter if you're part of the legal team, if you're part of the finance team. Can we do things in a different way and what is the unique way to do it here? That goes right through cross-functional in everything that we do. Innovation also is part of the attraction. A good idea is a good idea, whoever comes with it. And that is also the reason why as we grow, and you know most companies don't get faster when they grow. They actually go slower. That's not true here. You also know that to make it simple, easy, it's getting harder and harder, the more context you get. Our people say, that they find us to move faster and faster. And again, innovation, how do you make sure after year after year after year that you keep innovating? We see no [indiscernible] of size that we keep doing that in a good and fast way. This translates into the super exciting information like you heard it before, LightSpray right, CloudTec and [indiscernible] just to mention a couple of examples. But it also is how we bring and design apparel into the market. And obviously, it would be very remiss of me, if I don't say how we also bring the beautiful sport of football into the world right? I think that cross-functional way of doing it in a very fast, almost crunch year of doing things that most people might have thought that, that could be the next play, but do it in that way precisely and also communicate, market, everything again from legal to all the functions that needs to play part. I think that is where we are very different. So to show you a couple of data points to you. 87% of all our people leaders feel encouraged to innovate and have the autonomy to do so together with teams. Think about it, it's close to 90%. And that number, as I said before, has actually become higher and higher. We're not happy there. That would not be us. So we're trying to make that something that is constant. This demonstrates also that we are able to do so. 86 of our people leaders respond favorably when we -- they say that they can do this and they feel that they are encouraged but also that they have the autonomy, the freedom and the flexibility to add something and have impact. We know in all the research that we see around the world that most companies are struggling with exactly this. So when we compare ourselves, yes, we are in a good position. We're doing a lot of things right, but that means that we need to lean in and we need to make sure and as leaders also need to remove those blockers. So growth is our baseline. When our people grow, we grow, when our people doing well, we do well too. Easy to say, harder to do. But growth is really embedded in our DNA. It's connected to everything we do on a daily basis, but it's also rooted in that we are a purpose-driven company. We have that North Star. We have that beacon and people do know what their vision and mission is. So as I usually say, when the why is clear, the how is easy. Therefore, it's also a strength of ours, but everybody understands what we are doing, where we're going, when we are going and how we are doing. So a couple of hero events that will help us as we grow, as we become more complex, we are more parts of the world, and we are in every time zone of the world. And one of those things is something we call Ignition Day. So we fly every person that comes to and join this company, no matter what their role is, no matter what their function is no matter where they're based. They come to Zurich, they come to the mother ship where you are now to hear the founder stories, to meet most of the executive team to understand what makes us uniquely us to also find a way so they can navigate and contribute much faster than they wouldn't otherwise. 93% of [indiscernible] that's been to ignition days said it helped them achieve and perform much faster to understand who we are and also what their role is. They also found and met other colleagues that would help them do their job much faster. Another of these hero events was that we do understand that our leaders are people leaders or our manager, if you will, are very, very important. They could either be blockers or they could be the coaches, the mentors and the people that push back that also enables but in the long run, also make sure that we grow the next generation of leaders. So we created and we designed a leadership program on the principles that we have. So people are set up for success today and tomorrow but also that we continue to foster that culture of innovation. So we now in our 9th cohort, again, it's a 9.2 out of 10 scheme of do you now think that it's easier for you to, again, foster, develop coach, but also push and talent the people that report in to you. So we can do what we have set out to do here, which is not a small feat. And then we are launching a new Oniverse. And most of you would maybe think, "Oh, is that another Internet" If you think about it, especially if you have different types of skills, different types of roles, you are everywhere in the world for us to have a tool where we can communicate, we can inform from the same person or from the same message at the same time to everybody no matter if you work in an office or you work in a store, it's quite powerful. All these things are there just to mention a couple to make sure that everybody is more or less culture vaccinated because we think we are onto something special. And these are the things that we also all the time pressure test. So it's not a chosen truth or what's working here. And then we keep them forever because our culture obviously has to evolve. Our people is our culture and our culture is our people. And it needs to evolve for different reasons. But one because people that's been here for a long time, they have to understand that they matter. And the people that join also have to understand that they also matter. And together, we are creating and we are set off on a journey that is super, super important to us. So the commitment that we have to all the people that join and the expectations we have on them is a couple of things. One, what helps guide us is these five spirits. In most other companies, you would call them values. They've been with us for a long time. They serve us really well. And the thing that really sets us apart is this -- in most companies, you ask, do you know what the values are and maybe scores, okay. Here, it scores over 90%. You could go okay. And then -- and we ask them, do you live by the values? Do you embody the brand? And again, it scores super high. What is different at this company compared to other companies is do you also think that other people in other functions, in other roles live our values and everybody again says, I truly believe so. So this is the values or the spirits as we call them, that is here to guide us, make decisions, but also how we show up, how we treat each other and the playbook of On. So growing our people is a commitment that we have. We dare to be trust-based, we dare to be value-driven, but growth is very, very important. I said earlier, when people grow, the company grows. So that is the promise, but also something we expect from our people. They need to lean in, they need to stretch. They need to make sure that they grow with us. We need to make sure that succession planning is on point. We need to make sure that we stay a high-performing team, very much back to the athlete spirit. How can we, all the time, make sure that we find new ways of doing things in a different way and not changing for the safer shaking, but just to improve. We also know that it's much more fun to learn new things, if you believe in a growth mindset, and we do, then it is super, super, super important that we find ways to evolve push, but also develop and grow your people. This -- all of these things makes On a destination employer. And what we have seen, which makes us both happy and proud as lately, we have had the reason an opportunity to add a couple of tentpole hires, and it's been easy for us to attract people that has not necessarily had the same experience and skill set that we needed before. And these people can choose any employer, any brand in the world, and they can also live in most parts of the world, and we still come out on top, which is a strong signal to our brand, our attraction and our employee brand. So if culture is our kind of original innovation lab. And when we dream together, we dream big together and we grow and we become something else together. Everything that I have described in this session is an innovation mindset. You heard before, like being complacent, is not necessarily a choice here. Doing it the same way over and over again, it's not necessarily us. The culture of growth and the investment in our people is kind of a service to something larger. On has always been a company with a sense and very clear sense of purpose. As we become bigger and bigger and bigger company, we need to master how to scale. And some of us have done that before. It's not necessarily easy, but having that strong and very relevant evolving culture will help us do that. Our premium standard completes this logic. Our culture extends to how we treat our people, it extends to how we engage our communities. It also is kind of a fact that we refused to compromise. Again, unapologetically us. The same discipline that goes into building product goes into building teams, building functions, building our culture, building this company. I'm just going to end off with saying that what you have heard and seen this morning. And while you hear my colleagues come up here and give you examples of what we're doing. I think it's very, very hard not to be very excited about what's next and also what the future holds. And with that, I would love to invite up on stage my dear colleagues, Thilo, Olivier and also Scott to talk about innovation and design. Thank you.

Thank you, [ Katrina ]. I couldn't agree more, right? As you probably don't know so much, but there is still some people in the audience, I love people and the culture is everything to me. And the beauty of it that both both enable actually innovation. And innovation is not just innovation. Innovation is an important mindset on. And I'm not here on stage by myself over the next 30 minutes or so. We're going to talk about innovation, product and design as well. And hey, the good news is my presence on stage is 8 minutes. Now it's 9:30, 12 in the U.S. The market opens in 18 minutes. You don't have any notes from my presentation. And I ask you to close the laptops for 8 minutes only for me. I think if -- I think there's information you want to take notes from Scott, so please feel happy to 8 minutes. Be with me. I need your eye contact. I don't know how you feel, but looking at the industry lately, I sometimes get the feeling that many of the legacy brands maybe view innovation as a single annual event tied to product circle. At On not the case. You have heard it a couple of times, even yesterday in the [indiscernible] space, it's a relentless, continuous loop across many multiple teams. It's how we formulate the new foam, it's how we sequence the textile, but also how we re-engineer our supply chain with us, innovation it's not a corporate initiative. I said it before, it's mindset. And it's also innovate means it's also a mindset to fail. We celebrate failure. If you don't fail, you're not trying hard enough. And I'm sure you have heard us saying [indiscernible] and also that is not the marketing tagline. It's an engineering protocol, start with athletes intuition, create our maker space -- create in our maker space with our engineers. And then we go validate in our labs with our biomechanics. Test to failure, we want the product to fail at some point in our labs and out in the fields like that, and that loop goes on and on and on. What we have learned from that protocol is pretty easy. It doesn't make sense to make for break through doesn't make sense, to try to improve the product by only 5%. Even breakthroughs, they come from questioning the core assumptions the industry is built on. And to make those breakthroughs success every time I circle back to [ Katrina ], we need people. We need the right people, and we need a lot of people. Over the past years, we bought 400 specialized designers, engineers and sport scientists, right here to Zurich to let those disciplines collide, and sometimes tell you, it's literally collide. To exactly understand where this obsession for innovation comes from and how we -- this entire engine scale today, I won't take you back where it all started. Probably some of you know I've been a professional athlete and was in 2009, then when I was retired for a couple of years. I realize that -- knew that the competitive years were over, what my life for running was still there. So I kept searching for running sensation that simply did not exist in the market. And at that time, if you circle back, probably you recall, the market forced a permanent trade-off. You either could take heavily cushioned, soft or thin hard and fast. Basically, you have to choose between running on mattresses or on concrete bricks. Me, of course, i want it both, a soft protected lending paired with a firm, explosive push off to drive forward. But I guess, just lately, you have seen some Instagram posts, I've tried to pitch that concept to legacy brands, they look at me, you should have seen their faces. They looked at me like I was crazy and told me that physics were not possible. The trade-off was fixed. Not a good idea. Never tell an athlete, something is impossible. I'll go fix it. So we went in to my garage in the tiny village. I grew up. By the way, I still live, much to my neighbor's ongoing concern by the way. But after tinkering with a few questionable ideas. We took a pair of scissors. I mean you see it here, right, to a garden hose, [indiscernible] a shoe, and I know exactly what you're thinking of. And yes, you're totally right. Most billion-dollar companies start with sophisticated pitch tags or Silicon Valley incubators. Us, we started with garden equipment, a scissor and some glue. To be very honest, initially, I mean, come on. Would have one of you go out running in these kind of shoes, probably not, right? At half time because, hey, it looked [indiscernible] this prototype. It was even higher stacked. It was meticulously heavy. And on top of it, hey, I had your reputation to protect. I was still an athlete? But only a few steps in, I knew I was on to do something. I never felt that feeling before. And I've had -- I have gone around the planet a couple of times in my life. But 10 minutes in, things change. The friction that you get from running probably melted the glue, and pieces of the garden hose when flying off left and right into the bushes, like small [indiscernible]. [indiscernible] has definitely thought I've lost it. But for those first 10 minutes, the comprise was completely down. There wasn't -- didn't have to choose between soft and hard, slow and fast. It was all there. And that moment, that particular moment. That was the moment the spark of On. I felt compelled to create a running shoe, not for professional athletes, for anyone, for the people, but of course, I had no idea where to begin. And that depends on curious and slightly chaotic spirit was born in my garage, and it remains the unfair advantage till today. Still, to confirm, I wasn't hallucinating. I wanted to take the raw concept to some experience biomechanics. So I talked to people to [indiscernible], which is super close, here up the hill, the ETH, by the way, is the Swiss Federal Institute of Technology. And we mapped how hollow structures could collapse vertically to absorb impact then instantly lock to [indiscernible] platform to [indiscernible] propulsion. [indiscernible], you had the chance to walk our search maker space and -- saw with [indiscernible] was the guy that presented. And that facility still today is the link to the spirit of innovation in my garage back almost 20 years now. The main difference, and it's really the main difference is spirit hasn't moved. It's the main difference. We have state-of-the-art machinery and hopefully, less of the fragment flying off nowadays. What we've learned from since is also very simple. To innovation begins with a genuine idea with bold decisions, raw materials and very important rapid prototyping, and we don't spend 6 months exchanging digital [indiscernible] across the ocean. We focus on innovation, and it all happens right here in Zurich. Look, it's that simple, if a designer has a crazy idea of a morning coffee, they don't create the PowerPoint presentation. They don't even ask for permission, what they do. They simply walk run down to the maker space, they cut up a shoe, fine-tune it all, mold the plate and have an athlete generating data on a treadmill all before launch. And that compromise of time to prototype is how a crazy idea with the gardener hose became a movement, a global movement, and it's how we will continue to scale radical innovation across the globe. And to show you now how innovation translate -- direct translates directly into commercial margin and category growth. I hand over to Scott, our President and CEO.

Thank you, Olivier. Thank you. So last night, you walked through our labs. You saw firsthand how deep our teams go. We're here to connect the dots, widest engineering depth builds competitive advantage. We've scaled what Olivier build over 17 years ago into a world-class innovation engine. And we believe that even our recent unparalleled growth in Lifestyle, remember David talked about it, is authentically earned because of our technical performance credibility. This link is so incredibly important for us. And it's the reason that our whole strategy, everything that you're hearing today deeply invest in performance innovation. It doesn't just fuel our Performance business. We truly believe it fuels our Lifestyle business as well. We built a portfolio of over 650 patents to translate this men's engineering output into an unmatched business model. We think in three pillars: science and technology, CloudTec and Swiss engineering and LightSpray. So let me talk about Pillar one, science to technology. Olivier alluded to it, to own human movement which is what the teams you've seen yesterday strive for every day. We start with a deep scientific understanding of biomechanics. Insights from this measurement are the absolute catalysts to invent all of our new technologies. So let me make it real with an example. Casper talked about Hellen Obiri. Hellen Obiri comes to us. This is a real story, and says her legs feel like legs in the last 10K of a marathon. So we go deep into the biomechanics with independent studies into a new research phenomenon in running called leg stiffness. We go really, really deep into understanding that. We use that insight to invent a whole brand-new CloudTec, CloudTec Sphere. That optimize the leg stiffness. And then we build the latest racing product that you've seen that we launched 2 months ago. Not only does that same study show a huge jump in running economy. Our elite marching athletes, of course, including Hellen, all go on to master PBs as soon as they put that shoe on. This approach is now what we've taken across all of our categories, from Running, Tennis, Apparel and now Football and Golf. So that's science to technology. The second pillar is CloudTec and Swiss engineering. So what does all that mean? So when people think of On, they think of the Shoe brand with the hopes. That's what people know as CloudTec. For us, cloud tech is something very, very different and much more technical. We see it as structural engineering. Most brands can buy super foams off-the-shelf, and then that's the midsole of the shoe done. Very few have the engineering capability to structure the foam based on the sensations we want from the biomechanical insights we just talked about. No other brand can blend their own super foams in their lab on their R&D site and combine that with CloudTec. Nearly half of our patent portfolio are different CloudTec innovations. They are not just hopes. This is what gives On shoes the unique sensation and differentiation. And high-performance engineering comes with an equal responsibility on our planet. [ Catherine ] talked about at one of the Ps. Our goal is to prove that high performance and environmental impact do not have to be in conflict. And this brings me to CleanCloud, another huge innovation from On. Almost every running sole today is made from petroleum-based EVA foam. In 2019, we asked the ambitious question. In fact, as usual, Olivier asked the ambitious question. What if we could take carbon industrial emissions and capture it and turn it into high-performance foam. We did it, and we announced CleanCloud in 2022. The chemical industry told us it would not be able to scale until 2030. We didn't wait. We built a global supply chain from scratch, converting captured CO2 into E-NAFTA and high-performance EVA pellets. More importantly, we made zero compromise on performance for lower carbon impact. And even more importantly than that, we do this for staying incredibly disciplined in our economics. So when you add this proprietary material innovation, structural engineering, along with extensive durability, acoustic testing for squeaking, premium material selection, highest manufacturing standards, and you see it on the side of our shoes. All this together is what we mean by Swiss engineering in the On context. It's a lot that all comes together, in one phrase, and a beautiful lockup as well from Thilo. So Pillar 3, LightSpray. LightSpray is not just an automating manufacturing breakthrough. It's one of the lightest and most sustainable upper technologies on the planet today. When we combine our latest cloud technologies gives step-change performance improvements, LightSpray just adds on top of that. We have obviously designed the LightSpray shoes. But what most of you do not know as we also designed the robots that make it because we had to. We hold over 250 patents already across the product and process. And we're so excited how fast this is scaling production. Scaling fast because we see LightSpray technology already translating into some of our lifestyle products. We're starting to pilot that. and that is the unlock to scale this technology. And we've got a lot of work to do, but we see incredibly great initial signs. It's a fast evolving technology at On, and we predict it will be 10% of our Footwear business. It's not about the volume that's important. And that's not the reason I LightSpray spread. The reason I love LightSpray is what it does to technology, the paradigm shift in global supply chains. But the real reason I love LightSpray is what represents about us. We can take the most ambitious challenge. We can make it real even if no manufacturing process exists today, and breakthrough where many others before us have tried and failed. When you combine these 3 pillars of technology all of that innovation with our design philosophy, that is what drives on pricing power. So say again, when you combine all that technology with a very distinct design language, that's what drives our pricing power. And I'd like to introduce Thilo, our Chief Design Officer, will take you through how we bring the emotion to all of that tech. Thilo?

Thank you, Scott I had a lot of fun this morning. Did you? Good. I'm glad. So you saw a lot of applied design this morning already on finished products. So we're going to take it a bit on the design meta level. And I especially welcome again the people I met 3 years ago. So design is consistent. It's super important to really build up on the story. So what is the function of design it on? It is here to show you how innovation feels. And that's an equation I really love. As David said earlier, engineering solves a functional requirement and design makes this solution desirable. And I like this so much because there is so much in it in the word engineering, you have innovation, you have credibility, how a product feels physically and in the work design, you have expression how a product and therefore, a brand feels emotionally. And what in other places might be a reason for a lot of friction internally because people would want to build either a performance or an expression brand -- we see this, as I call it, semantic ambiguity as the main contributor to our unique design proposition that we've built now for 1.5 decades. I say for the first time, I will repeat a few times we designed for the end and not the or. But why is this so? I think there's ingredients that play a role, and 1 of them is our provenance. You see the famous Zurich School of Arts that made the Swiss style that became international style big in the 50s of last century. And the foundation of this is really the rigor and the clarity and the purity with which design was done in Switzerland. With design, it's no different than with engineering, precision is king, and it runs very deep in the DNA. But next to Swiss rigor, I think there is as well a thing that we love to entitle as modern craft. Modern craft is as important as conceptualizing and think about design, you have to be able to go and build it. You touch the word on it. Currently, the more people spend time on AI-enhanced digital landscapes, the more I ask people to just go to the workshop and quickly try and do it. And I truly think if you both do in parallel that's really a superpower. The third ingredient that we love to work with or even define is the design vocabularies. I think a traditional design vocabulary is useful, but it's not what keeps us hungry. And while we keep an eye on the competition, I would say it was never the main source for our inspiration. So while we respect the past of Swiss design, we are the brand of the future, and the language is the aesthetic expression that we push is the principle we call or that you know as well from a different context, Maya, most advanced, yet acceptable. I think we have never been afraid creating something new that hasn't been out there. And so I think one of the biggest motivations of the design team is to create our own visual and tactile vocabularies for the movement. The tools that we work with currently, they deserve as well I mentioned. What you see on the left appearing on the big screen, this was the reality. That's what the sketch looked like a first sketch that we presented at the so-called initial design review which was the first design review in a series of several ones in 9 months or a year. What you see on the right is the images that we now bring along to a first initial design review, and this is not photography. This is AI enhanced from what we sketch and we line draw in a very, very few days. So we're not only producing pack shots, we're producing editorial images on body. We even animated and in cooperation with marketing and comps we can imagine campaigns. So I'd rather tell you why we do this not only about the advancements that we did. Design administration is somewhat the enemy of the beautiful design mind because drawing plants, filling in material sheets, hundreds of color specs. This all takes away actually from creating. And by letting digital tools absorb all of this, we liberate the full capacity of the design teams for really creative work, which for us are defined by exploratory thinking by judgment by intuition by taste, which are all the most human of qualities and not necessarily the forte of AI. So the best designers in the future are needed for the best curation the most unlikely of combinations, the most illogical, but beautiful choices and for thinking the unthinkable. But now let's get to the results. What does design enable us to do at On. First of all, we've always had the goal to operate with one design language because we believe, a, in the stretch of the brand but we always as well believe that we can speak one design language in several dialects and that we can go very far with that and that we don't need a hundred sub-brands. The more that we grow On, the more it becomes recognizable and the more we can build bridges across verticals. Something which I enjoyed a lot is last week when the rumor Kitchen was boiling at its hottest and you could see AI images appear of what perhaps what the football will look like or another shoe that we might go after. You could say, are the people copy us with AI, but what I'm really fascinated is the people are getting it pretty right, which means they pretty much understand the design language. So the design philosophy unifies, but it's not only about the aesthetic language, it's as well about implementing the horizontal tech transfer. So we've always rejected to just say the best physical product comes at the highest price just for an elite buyer, but our goal is always to apply that as horizontally as possible, not only esthetically recognizable but as well really offering the function. My very favorite example these days is our lightweight jackets. This started in a way where strictly for our athletes, trail runners and runners, we set out to get 2 records, lightest windbreaker and lightest membrane jacket. We achieved 2 outstanding pieces that were foreseen a safety gear mostly for the trail runner so they can pack it up that size and take it along. But very quickly, this very techy appeal was recognized by buyers far, far into active lifestyle. We've identified this gap, and we very, very deliberately want to be the brand that occupies this gap as we see it, which is defined by technology, material and a very translucent lightweight tech appearance. And last but not least, then the third piece is now we really can start to compound. It's about cross category expansion, and this has been very enjoyful I have to say. In the very beginning, we had to learn so many things in running. We had to learn so many things in tennis. Then when we enter training slowly, we could tell we have learned something that we can use again. And while Footwear always remains hyper special at the end, I think, about the process in design and engineering, you can take so many things along -- and now that we're adding sports, so the things that you've seen this morning, this all comes very, very beautifully together. And this is exactly how this design discipline establishes technical credibility all across the board. As an example, in footwear, I would like to give the word back to Scott, who shows us how this involves on the road.

So let's talk about performance running. As a brand born from running, we're absolutely privileged to be part right at the epicenter of an ongoing megatrend. The running landscape today is more competitive and faster moving than ever. Global participation is exploding to historic highs. The London Marathon in 2010 are the 120,000 applicants. Today, in 2026, it's 1.3 million applicants. If we look at our premium TAM for us, we define that above $160 is outgrowing the broader market. Growing to 36% of the $22 billion total running market. We disrupted the industry 16 years ago, and we're accelerating that disruption to date, taking that proven science, that's Swiss engineering, a very disruptive manufacturing and bringing them together into our franchise architecture that we could build 20 generations of running product upon. So remember, we're only on Surfer 3. Most other brands are on 20. That's what we're building upon. The playbook, Olivier pioneered using innovations to build unique sensations for running has not changed. What is new is how we explain our product architecture to our communities and to our retailers. So it truly brings that differentiation to life, to make the product choice easier and more intuitive we engineer 4 distinct underfoot sensations, pairing specific cloud tech geometries with custom super foams. First, support delivered through the franchise cloud runner. This builds a runner's confidence, measured by core stability, not by weight or size, by core stability. It uses wider-based geometries, asymmetric heal cliff and a cradle like CloudTec cavity that guides foot naturally. The second is soft, delivered by CloudSurfer. This focuses on neutral cushioning and smooth effortless transitions. CloudTec phase cavities collapsed sequentially paired with SURREAL super foam for an intuitive heel to toe right. The third is the Cloudmonster. This is designed for high rebound forward acceleration and explosive balance. Combining maximus clouds with responsive foams and an aggressive rocker profile. And the fourth and last is fast. And we've talked about it a lot already, is our Cloudboom franchise. This is built from maximum propulsion, fatigue resistance in that last 10K and race day personal best. Feedback from our customers and key accounts on this new architecture, our recent POWER RUN SUMMIT, was overwhelmingly positive and not only enables our performance credibility that enables us to really cut through on that shop floor and online. We have already substantiated this architecture with 2 releases so far this year. We've talked a lot about it, but the Cloudsurfer 3 is already launched, actually, exclusively, we run specialty, but officially on October 1. This marks the commercial debut of the SURREAL superfoam combined with CloudTec phase. SURREAL is 15% lighter, 20% softer and 15% more explosive than Helion. In Pinnacle Racing, the LightSpray Cloudboom Strike 2 has a brand-new CloudTec technology, the CloudTec Sphere, 15% lighter and a lightweight 158 grams with a LightSpray upper. It showed a huge jump in running economy, and the demand 6x more than initial availability. So we're working hard to catch that up. This potent mix of advanced mid-sole technologies and industry-defining LightSpray upper delivers meaningful performance. That same integrated approach that we've taken to running clear communication on simple methodology is exactly what we're now bringing to the apparel range. And Thilo will talk through that.

That's a very nice jacket.

Olivier and I wore the same one.

Okay. Thank you. So I want to start this section with the same precision is the silent authority of premiumness. I think we have been very encouraged and asked by the fact that a lot of people who ever picked up a piece of On apparel immediately saw and felt the precise make of it. We made this an absolute nonnegotiable product brand marker physically. But of course, beyond its precision of make and function, apparel, of course, is the cultural expressive element, which is able to connect all sports. Two simple points, and a very strong view on expression guidance here. The first one is not new to you, so I'm keeping it short. We view the athlete as a single integrated performance system and we want to deliver toe-to-head confidence and emotional connection precise to the tenth of a millimeter no matter what piece. Everything said I think what you saw this morning was hopefully not what you knew and expected, but you do know our performance expression that we've been building for years. Secondly, we've invested really a lot into materials and material innovation. As in Footwear, we believe that materials and therefore, technology and materials are going to be even more defining for design than they already are. They are the base on which every expression is built, and this is exactly where we come a long way. What franchises are in product portfolios, technology brands can be to material innovation. It's a purposeful intentional compass on what to focus on, both for us internally when we build and for the customer externally to find guidance. We therefore built our two material technology families. One is about functional technologies, engineered performance and climate utility. In there, we have DryTech, which is a two-directional moisture wicking and rapid evaporative cooling technology. We have ThermoTech which is a high-loft low-weight insulation, and we have [indiscernible] our own system of waterproof and [indiscernible] membranes. On the other hand, we have a material technology family, which is more on site of tactile sensory experience and of adaptive fit. We named it Sensetec which is a family of Velvet next to Skin touch that prevents cling when wet for distraction-free movement, and we have FormTech high-power elastic recovery and adaptive body sculpting. It's way more than rationalizing about material Sensetec for example, has been one of the most successful pathways to bring more female athletes to On. After now the foundation of those two logical points here comes a bit my emotional closing speech about expression. Everywhere, but I think especially in apparel we just refused to play in the sea of sameness. And we very deliberately want to be a brand of [indiscernible] easy to remember. I put up this picture here because on the left, I think, is what people know from a high-performance context. On the right is what we think is the expression of a contemporary sportswear brand into active lifestyle. And you've seen many of the pieces and their expression with a very strong focus on her this morning. It all comes back to the end. Remember that in the very beginning, it was the soft landing and the hard push off. And today, we still reject very deliberately designed everywhere else to be a mono-dimensional brand. We design for the and. And we're not doing it in a way where we're all over the place, but we do it so very, very deliberately. A recent industry feature, which you might have read placed On's squarely between mass athletic wear and luxury outerwear and we loved it. We believe that we both have the brand and the design team that can take the stretch and that can create a perfect product for an active TAM, while we maintain from the beginning design-wise, the rigor to execute on it. These principles that I just told you about, they give us the clarity and the confidence to explore many facets of sportswear, many, many more and we don't dilute our design equity with it. Remember, we speak one language, different dialects, everybody gets its one brand. And this might be the difference really to others because if we did not challenge the aesthetic status quo, if we did not connect the dots in the most unexpected ways and if we did not rely on human intuition, than perhaps others and even AI could do it, Oli. Do you want to close this out?

Thank you, Thilo. Yes. Happy to. Yes. I saw two lads stopped closing and soon as I stood up. I don't know about impression i left. You can leave it open, but still you don't need to take any notes. It takes 45 seconds to close. So isn't that amazing that all started in this little kitchen in my small village, I mean I'm really emotions. I never thought that it could become a company. And I'm sure nor David, Casper or anyone that's showing us truly believed what we see what it had to come nowadays. And what you have witnessed firsthand in our maker space from material science at our foam competence center to the automated robotics of Libra and from podiums at the elite running to technical textiles every single breakthrough. And it's every single breakthrough reflects: one, relentless drive to reset the industry's benchmark. And that's our reason for being here. And now not only looking at you also myself and looking and my two co-founder friends, I think it's time for a break. It's 7 minutes to 10 in the U.S. I think it's time for the second, third or fourth coffee for all of us to stretch a little bit, to use the washroom, hey, use that time, again, whatever you need to give you 20 minutes. So that means, let's gather back at a quarter past 4:00 our time. Thank you, everyone. And we truly appreciate your presence today and your attention to our story. Thank you so much. [Break]

Please have a seat. We're in the tough slot after the coffee. I'm Alex. I'm not sure whether I should apologize to being responsible for marketing or to praise it based on a number of questions I've had today and yesterday, I think we're on the edge somewhere.

My name is Gerald. If you have any color recommendations for the product. I'm your guy and the Chief Product Officer.

So we are here the next 4.5 hours to speak about product and marketing. We just checking everyone still awake. The classic gag. But hey, Gerald and I actually represent two incredible forces at On. Two incredible teams that work on product and also on marketing. What does that do together? It creates a brand. So amongst our very busy schedules of meetings throughout the day. Our teams are working incredibly hard on forging that brand because, as Scott said earlier, when a consumer comes to our brand for the first time and maybe comes back for a second and hopefully, a third and fourth, they're feeling the brand. They don't feel our function. They don't feel all of the ins and outs of our day to day. They feel something hopefully very special. And that is really that killer combination that we work on every single day. And what does that mean? What's the result of that? That, of course, increases our TAM is the overall addressable market that we want to increase.

And in product, you heard it before, we slice and dice that addressable market in what we call community mindsets. We have 14 community mindsets that we built and through our innovation pipeline and through product sensations, we make sure that we can satisfy those community mindsets altogether. That starts with the peak performer in Running and goes now all the way to a premium active mindset when we talk to Her in Apparel.

But that leads to a pretty big question. And I've told you a few times today and yesterday. It's how do we stay true to who we are as we go. It's a very clear question. Relatively context question, but the answer actually sometimes is quite simple. We stay very true to who we are by focusing on innovation. This is not just in the product space. It's pretty much in everything that we do. You saw we went to market last week in the biggest sport on the planet. Our approach was very unconventional. It was very different to how other brands would approach that. And that's really -- there was a secret sauce of on. It will be something in this approach of saying, this is how others do it. This is how we're going to do it. We want to be different, we want to approach it in a very unique way. So the role of our brand within the premium playbook is hopefully very clear. We start from a point of view of authenticity. You've seen this slide earlier from David and Casper. You show some of our best partners that we're currently working with. There's a lot more behind the scenes as well. What I can add a little bit more flavor onto this picture is that when we work with these partners, they're not just a face for hire. They come to our brands. We sit often around their kitchen table or somewhere when they come to On Labs in our spaces. And we talk about what are the things that we really find important together. It's actually more like a slight sibling relationship from brothers and sisters. They tell you when you're doing good and weekly when you're doing bad, sometimes it's hard to hear. But the reality is that all of these partners, they spend time with us at On. Zendaya a few months ago, she came looked through the entire collection we had about 10 or 15 different versions of yoga tights for her to try and sample. She has given us extremely direct clear feedback. Roger in the same breath? People often think, hey, does he really come to On, does he spend his time here. He actually does. He has a parking space. He does have a real badge. He comes here, he tries product. He tells us what he thinks it improves everything for us. What we know from all of this is through adoption. Adoption that we buy does not compound. Adoption that we earn, that does. That's the engine that keeps all of this brand actually running. And we're building at the same time in a pretty new and different environment. When I was on the stage 3 years ago, we were talking about this emergence of this thing called AI. Now it's -- we're living and breathing this all day and absolutely every day. And to be honest, this has radically changed the way that we go to market and the way that we tell stories, the way that we capture demand. So in this space, it's a real shift in the marketing playbook. And it's meant that whilst media spend absolutely still matters, it's not the driving factor around how we're going to go and build this brand. You see from the examples on the screen. When we go to market and we tell our stories in the most authentic way through entertainment, through storytelling through things that really capture attention in an entertainment space. This is where the media power becomes even more important. So when we're all scanning on our phones going through the feed, what is the thing that you stop and you engage with. Is it an add in the classic sense. I think now, especially with younger generations, they are extremely in tuned to when they're being classically marketed to. They want to be entertained, they want to feel authenticity. They want things that stop that thumb, help them to engage and hopefully help them to come back over time. So it's a brand that believes in innovation and creativity. That's great for us because we're very well placed to tell more of those kind of stories. We want to work with the algorithm, not against it. And it's very fast evolving space. This means that we can be pretty rapid. We can test and learn. I've spoken at length over the last couple of days about how AI plays a role, not necessarily the things that we create, but how we test and learn over what we create. This is just amazing opportunity for us to be different. So I want to give you a slight look back over what we've done over the last 3 years. When I was here last time, the buzz word was communities back then, at the core has always been Run. It will always be Run. This is the absolute epicenter of the brand. The back through 2023, we spoke about how the emergence of a couple of new core sports. We had Tennis -- we had Training that was amplifying out to a few more communities that we were reaching, and you heard earlier, what is that hard work achieved of building the brand? This has increased overall by 2.5%, which is fantastic. And we -- what we actually promised back then was that we would be at over 30%. I'm very happy to say that all of that hard work has now achieved that. Now in the performance space, actually 1 of the questions I've had over the last few days has been around our athlete approach. We are not a scatter gun brand. We do not go out and bring on endless number of athletes in this number of partners, we are extremely selective. We're very precise in who we bring to this brand. We make sure that we [indiscernible] I mentioned earlier. The things that they care about are the things that we care about. When we forge that partnership, that's when the magic really happens. So you can see here that -- this back in European Championships just last year, we only had 3.4% of the athlete quota that got to the start line. That equated to 10.7% of the medals. So a precise formula that gets us from people that want to work with us, they feel credible, give us incredible feedback like brothers and sisters and then we go and create the products that they need to perform. Switching gears from performance and into the more lifestyle space. We have someone relatively well known called Zendaya, one of the best actors on the planet. And we select partners like this to help us to amplify the brand overall. So major moments for [indiscernible] and Zendaya. We had an incredible Super Bowl advert where we put Roger Federer and Elmo together, to not necessarily the partners you imagine going together on Super Bowl, but we created entertainment. We created cultural moments. We created these elements in these moments where consumers really interact with us as a brand, and they start to understand what we actually stand for. So this is really the power. With film this recent spot that we created with Spike Jones, Amy Award-winning director with Zendaya, we crushed every benchmark possible. We had 87 seconds of average user viewing time. That's on a 3-minute film, which is pretty. [indiscernible] Our partners at YouTube, Google or somewhere in the audience, they tell us that this crashes through every benchmark that they had. And the ultimate goal of that was a 730% brand lift. So we've really put in the playbook at work, great partners, great entertainment pieces, tell the story of product. This equates to our overall brand growth. Another great example of this is how we take from performance all the way to what we call expression and lifestyle. So you heard earlier around the Cloudsurfer 3, an incredible product that's coming to many feats have runners in the coming months. It actually started very much in the lab. It was around the creation of CloudTec phase. So think of this in the lab, you see on the picture on the left-hand side, engineers working on perfecting the exact version of CloudTec phase. How is this going to compress to create the soft landing and firm push off that we have back in the garden hose from the early days. And that was really the nucleus of the idea. But in fast forward a couple of years, we took that through to one of our best partners, [indiscernible] one of the hottest fashion brands on the planet. They picked that up and said, "Hey, that's just incredibly looking technology and design. So we took that to a fashion market for the very first time. And now we see that going all the way through to a more expressive version with the CloudTec remix, which is now one of the hottest sneakers with our European partners in the top 3, actually, of the best-selling sneakers. So performance, relevance, expression back to the playbook is how everything starts with performance. Consumers really want it, but we can take it all the way through to lifestyle. I think another great thing with this is that we've mentioned it before. We don't have an archive. We can't go down in the dustbin in the basement and pick out something from decades before. But what we know from consumers is that other brands can do that. They want newness. They want innovation, they want freshness. They're actually pretty hungry for a brand like us to come along with something very, very different. We are on the streets of Marseille just this year, and we start to see the nucleus of consumers putting this on their feet, we see groups of 6 or 10 friends together, and there's 1 or 2 Ons. This didn't happen a couple of years ago. These are really the green shoots of what we see from the future. So that awareness development I mentioned earlier. Back in 2023, we were around the 12%. We put a lot of effort into growing that brand. Back then, we were in this cohort, what we call the run peers. So we were kind of hanging out. We were an emerging brand hot on the tails of some of our competitors. But we're seeing through that growth within branded awareness, we now get to above 30%. And that really is now the headroom that we have because the brands on the left-hand side with a little bit longer in the tooth and I've been around for a few more decades. They're more in the lifestyle space. They have more categories to play in. You start with the emergence of football just over the weekend. This is now the permission that we believe we have as a brand, the opportunity, the growth that we have to go after ever more fans. David mentioned over the weekend, we're just talking about 3 days here we're 50% -- over 50% of the awareness share of the voice of people talking about on a brand. Was it 8 billion? Was it 80 billion. I think we were our eye somewhere in the future, 3 days of 8 billion, I think we're quite happy. We'll take 80 billion in the years to come. So we mentioned the 30%. Now that obviously grows. We set our target of over 50%. I think we're absolutely going to smash that when we come back in a few years' time. Ron said at the core, core sports, new sports, as we now mentioned, and then broadening out into lifestyle and culture. It's not a compromise, as I said earlier. Consumers are very hungry for innovation. They actually want to know how CloudTec works. And the next step, of course, is how does it feel? How does it look? Are the colors? Is it my size, all of those things are obviously extremely important. But we set that target very precisely, and with the new sports we feel that, that's what fully achievable. So unsurprisingly, when you look at -- when you break down that 30% that we're currently at, Running being our core is the largest with 40% with [indiscernible] consumer with women, we're roughly 30%, non-runners and the younger age range is a bit lower. So don't look at this as a negative thing. We see this as opportunity. We have just one sneaker that we feel we can stand behind as the sneaker of the moment. We're going to add many more franchises over the future, adding apparel, we're adding new sports. So fueling these awareness engines is fully in our grasp, it's something that we can get after with our premium playbook. So that brings us to what we would call a confidence framework because, of course. If a consumer wants to fill the brand and wants to hopefully fall in love with the brand, they should have some confidence that we're doing some great things. Scott and everyone has mentioned, we put the consumer at the heart of absolutely everything that we do. And we feel that when we have these 6 signals working extremely powerfully, that's when the consumer has the most confidence with us as a brand. And it starts, of course, with Gerald in product experience.

With product experience.

Yes. And Scott, Thilo, Olivier talked a lot about product experience. So I think just in a nutshell, as I hold a bottle of water, what we're trying to do is to really give consumers 10% extra. The 10% you speak about, the 10% of that experience where you go to your peers, to people in the gym, to people on a run route and you say, have you seen this? Have you felt this? So we will always do the 100% job, but we also want to leave the little extra that gives you the confidence on the product experience to bring everyone else along.

And the athletes and cultural relationships, as I mentioned, are a key element of that process. We turned up in Copenhagen just last weekend, absolutely smashed it with incredible athlete results with product that we turned around with LightSpray, actually an incredibly fast time. We know that when more people talk about our brand, when they enthuse about our brand, that's when the magic happens, and that leads then into the retail space.

Which for us was so crucial to breakthrough in apparel and accessories. And if you look at how we now really build toe to head, our own retail is the perfect expression of that. Alex and Rebecca are going to speak a little bit more about how we build now beyond the 80 stores that we have. Our own retail is where our confidence is expressed at its best.

Think we spent quite a lot of years as the brand speaking to the consumer. I think that was very important in the early years, those first formation moments. So a lot of us explaining the technology, what we stand for as a brand, almost introducing ourselves with a handshake. I think what we now know is that the voice in per and social proof is ever more important. So you'll see a lot more people speaking about on through their voice now and in the future is something that we are focused on a lot in the coming years because, hey, if someone recommends you as a brand, that's often more powerful than the brand speaking for itself. So we've had the early days of when someone would see a shoe and say, Hey, what is that?" And hopefully, that will tell a very good story. Now we know through the digital media and the algorithm is that we have to have more people ampllyying our brand, more people talking about the great things that we're doing.

Which in the premium playbook that we heard in the keynote makes this demand generation opportunity much more precise. And if you look at where we place content and how we make media bets, we can be extremely concise and precise in our execution.

Alison and Rebecca, who are up next, will talk a lot about the experience, particularly in the digital space. We know now more than ever when we're trying to find a brand, are you going to ChatGPT? Are you going to a lot more people going to Google still or some of the other spaces. Our digital space is really where a consumer can feel everything from us as a brand. You've experienced lots of new things in the spaces today, but our digital space is really that global flagship digital experience, which has to be the absolute pinnacle when you come to experience the brand. So we're going to go through the engines. You heard the 3 core engines earlier, run, sneaker and apparel. We've added a fourth one cheeky to the right-hand side because there's always room for one more. And we're going to give you a bit more insights into how we look at this. So we'll start with run. You heard earlier the incredible amount of effort that's going into our core run franchises and how we're going to double down on bringing those best sensations to the world. There's really 3 core things that we look at when we try and amplify our run story. We want to be there with run culture. It's something that has emerged over the last number of years. What that simply means is being at the places where runners are, speaking to them in a way that connects with them. So whether that's turning up at the best running routes of the planet, being at the most incredible events that we can put on or infusing about that with athletes, that's really the focus of our run culture work. I mentioned athletes, we leverage them. We believe that the precise nature of how we bring these athletes on board, having them talk about what we do and then obviously put the put the money where the mouth is and put it on the track, that's where the magic really happens. And then the third of that third portion of that is about the right experiences. So the very best product experience, walking into our stores, immediately understanding the differences between our franchises, having an incredible conversation with the sales assistant, going on to our website and being able to just do a shoe finder to find that very best product. This is where we will put our efforts within the run space.

And you heard it from Scott, CloudTec can now do it all. So we want to make it extra simple for our consumers to understand where they should find their home with us. We have 4 product brands that we build in running across the 4 sensations that we strongly believe in. And then we add extra sensations within those 4 product brands. So if you think about the Cloudmonster, where we now bring a trail running shoe within that franchise, it's very clear that through CloudTec engineering and our high-perform approach and how we put those 2 things together, you're going to get great energy return even if you go off for a trail run. And across all of those franchises, of course, LightSpray is coming to life as our pinnacle technology, and we'll make sure that from a strong retail partner all the way through our homes in D2C, you're going to be very easy and clear to understand where your home is depending on your style of running.

Sneaker, next big area. So as I mentioned earlier, we've made some early, really big steps with the Cloud tilt, which we're all very happy about. The younger audience is starting to take notice of us. We're disrupting in the space, which is pretty much ripe for innovation from the shoeroom, the footwear room that you saw downstairs, the lineup is incredible. Again, with our partners, they give us a lot of feedback. We're very happy to take that. We want to work in combination with them to bring the right products to their consumer in a very authentic way. But again, we want to be different. We don't want to be just like everyone else. So we're very precise on what we do. With our kids and youth space, actually it's only 5% of the current footwear business. So a lot of headroom there at the same time.

And I really love this chart because we can build lifestyle through different lenses now with adding football to the mix. So we will always have a very strong lineup when it comes to what is born and run. And if you look at the Cloud Swift, the Cloudmonster and the Cloud Tilt, this is all true running technology that we now translate with our core partners in the sneaker space and give that more options, more materials, more color so that you can renew your inventory every other season. We're also very proud to continue the journey, obviously, with Roger and what was born in tennis. And as we open up also having a leather in our portfolio, we're renewing the Clubhouse as our center point of the sneaker strategy for what we call born in tennis. And then last but not least, and I think that is a very important point and just the first glimpse of how we will translate what we built on the pitch to off the pitch. We know that is incredibly important, and we have a lot of great ideas, and we will very early in 2027, start to go off pitch in football as well. And I can't wait to show you what that's going to look like. There's a little example from last weekend, just to give you a little bit more color on the sneaker strategy. This is the latest release with our friends at Kids in New York. And Ronnie has now for a couple of years, edited several of our sneakers in the main focus point for this drop was the Cloud Swift, but also the Cloud zone, where we look at how we can bring energy, the same as Alex spoke about with Louis previously through our sneaker franchises with a Kids run club who will be now New York, L.A., Tokyo and Seoul running in these products every week and at the same time, then translating that towards an in-line business for us as we go in spring '27 and build a bigger business behind the Cloud Swift. Kids you mentioned, they're not just cute, the very little ones on top there, but they're also absolutely through product integrity followed through that is super important to us. So we always say it's from 0 to 99 now, and we want to make sure that we really execute at the highest level from the toddlers all the way to the kids, to the youth and then to the adults, you will be able to get full product franchises from us, and we're super, super proud to bring the very little ones into something come and something very good looking as well. So with apparel, we build from her. Again, when we speak to consumers, which we've done a lot of over the last year within apparel, we hear from her that she actually does sports a lot. The interesting point is we've heard from consumers that we actually don't do sport that much. And then when you hear how the day actually looks, you realize they do sport a lot. It's extremely integral to what they do. But they don't want to be defined by that look. I think there's other looks from the past, which are the sporty girl, the sporty look. And what we know from this consumer, they definitely want the functionality. They want the performance and the materials, but they want to style it in a slightly different way. So everything that you've seen from the product presentations has been about elevating that look, starting that look in a very different way. And we feel that's something that the next generation of consumer is very keen for. I want to keep this very brief product strategy and our 3 pillars. We're not going to slow down in dedicated. And for those in the room, you've seen this morning in the fashion show, there's a lot of great things that you can run in, look great. We have a lot of material innovations coming. Thilo spoke about that. So we're going to double down on that and make sure that we have that peak performer mindset represented continuously in a dedicated space for all the sports that we do. When it comes to the second pillar, it's what we call the essentials. We want to take the best materials that we've built and the most mainstream -- can I say that?

You said it.

Yes. The most mainstream silhouettes to as many people as we can. So we built an essentials range together with our creative team that should capture a huge market out there with our best materials, our greatest silhouettes and a very easy to style look. And then last but not least, the one thing that we're all so excited about is how we build our foray into premium active, how we take a more natural approach to materials, how we look at the silhouettes altogether and make sure they transition well from a more workout or gym space all the way through your every day and how we innovate a lightweight jacket together with the pant so that we can represent her in her true self with the ideas that we bring in premium Active. So we sneakly add the last fourth engine with football. We're 3 days in. So there's not too much to report. You've heard some of the fantastic numbers that we're very happy with. I think overall, how we see football is not just -- it's a new engine. It's not a completely separate one. We know that a lot of the consumers or the customers we already speak to in those other 3 engines, they care a lot about football. And we see from the very first days that actually that audience is very connected to those other spaces. They're already asking what people like [indiscernible] is wearing when he turns up with a training ground is decked out in you guess on apparel and footwear, not just from the football space, but from the lifestyle space. So this just shows how that engine is going to really be a superpower for the other spaces that we have.

Actually decked out in on Essentials.

There you go.

We have 3 incredible athletes that we partner with, and we spoke a lot about how the athlete is at the core of how we develop. So with Sydney, Thierry and Kylian, we've really found great partners or siblings as you call them. And they're in the lab and they're working on pitch, off pitch altogether. And we want to make sure that we create that full sport through On's DNA and that we have our own take in that sport. And that actually started last week. This is one of our prototypes that hen war in one of the trainings last week, and we're tinkering back and forth. There's a lot of little details, a little thing here, a little thing there, but I can guarantee you this is going to be the best football shoe that was ever made.

That's a promise.

Yes, it's okay.

We take -- we can do that. So those are the 4 core engines. free clearly the biggest focus that we have. And over the coming years, you're going to see how football comes to life in a more meaningful way. So just as a reminder, we actually probably should have added a fifth circle on football. I would have been interested to see what the global brand awareness would have been today. But it just shows how we can keep adding these different engines. We can keep adding these different awareness drivers. Overall, that's going to supercharge us up to 50% and above. And that's just the future of the ride that we're all together on now.

So yes, with that, please bear with us. We're going to set up for a panel. We'll close brand and community. Thank you very much.

All right. I wasn't going too long. I hope you didn't get bored. This is going to be fabulous. That's all I'm going to say, but we're going to watch video first. Ladies and gentlemen, please welcome to Absolute Legends, Roger Federer and [indiscernible].

I hope they're happy with us that we're sitting in the wrong order.

Sitting in the wrong order.

Okay. You got some you guys were standing I was like I hope we're going to have some seats.

It's comfy, no?

Yes, it's very comfy. Roger, let's start this off with how often you're here. People sometimes don't believe it. We know your dog's name. I still don't know the street. That's fine. You know more or less every team member's name and you welcome them and you're here, you're humble. You just love it, but we actually output a lot. How do you do it? You come in every day and you're like easy, easy? Or how do you get your come in and create product together with us?

I mean it's great to be always at headquarters here in Zurich. And I try to come in as much as I can. I think the beginning of the relationship partnership. And then friendship as well was very important when -- well, unfortunately, through COVID and my knee problems that I had, I actually had a lot of time working on product, getting to know the team and actually getting to know the brand and obviously, the founders then became friends. And it was amazing. And then, of course, because it's just so close to home, I can always pop in for a quick lunch or coffee or just catch up with either the Roger franchise team or the tennis team or marketing team or whatever it is. So I try to come obviously as much as I can. I'm also very busy traveling the road a lot, but it's been an amazing journey so far. I'm very happy that the way we got going and announced the partnership to the world and now welcoming Cherry and football to on is a dream come true for me personally because I know Terry since a long time and call him a friend as well. So it's so cool to be doing things again together. It's an absolute dream come true, and it's good to see also Thierry at HQ.

Fantastic. Is it just him why you chose on? Or you could have worked with any other brand in the world. Why did you choose us to build together?

The vision about the innovation, where the game was going to go, the impact that we wanted to have. I mean we talked about it before throughout the whole day. We started in this building where we had a meeting and you guys talked to me about the vision that you were going to take, and I wanted to be part of that first and foremost, because the relationship that we're going to have with the a that we need to have in terms of how close we're going to work on the product and the boots and obviously, the impact that I can have that you can have and everybody involved the athlete, but also the impact that we can have on women's football, which is important and now we can develop a boot specifically made for women, which is very important for a very long time. Women football is to wear men boots, which I don't think is normal. So all of that -- and I mean, we're talking about it with Roger earlier I do think that the game, the brand, whatever game it is, it's just limitless in terms of where you can go and how far you can go. That's -- I'm sure Roger had the same kind of attitude when he was a prior. You're always learning and seeing where you can go. And that's why I see us going, learning every day and trying to be the version that you can be.

When you came in a year ago, we put all the team in the room and was like 1, 2, 3, 4 big ideas, and we have an immediate collision of big ideas and innovation. If you think of that for a long time, creating product together that was always sort of in your back pocket?

No, it's not so much about creating products. You have a vision of how the game should be and how you should go about it and why you want -- what you want to bring back or not. And I mean you're talking about in the first meeting that we had, obviously, people were talking about different ideas. You had one, I had a couple, maybe more than a couple. does it work, does it not work, where do we go with that? But we all know that diamond comes from pressure. And so you need to be able to push people to a certain way on what they can achieve and that doesn't happen by relaxing and not any idea, they must come in together and sometimes argue about it and it's just normal. But I will take the time quickly to thank everybody because to be able to -- and I said it earlier, but I will say it again, to be able to create something so quick in what we were thinking of when we were in that room to be able to impress Sydney, and everybody is just outstanding. So I had ideas. But like I said, I was sleeping at night and those guys were not sleeping so much and pressure was there, but that's just how it goes.

Talks a lot to the athletes respect, right, that we have as a center of gravitas almost, Roger. I mean, you were almost at the end or towards the end when we started working together, and then we were able to attract a lot of young athletes through that. How do you define that kind of athlete mindset when you bring it in and you work on product or the athlete respect in that sense?

Yes. I mean, like that was obviously a very interesting learning curve for me as well at the back end of my career. to then start basically the tennis division here and on and trying to understand who could be a good fit to the brand, how do we -- well, design a shoe with Olivier, which has been a very cool and fun journey, stressful at times, but we made it work. We even started before we even had a deal and made it in time 3 days before my comeback in Doha, and that was obviously super special. But I think it's very important to make the athletes feel very special because everybody has a unique character. They all want to shine in their own right. And I think it's the difficulty for us to make that happen that they feel are being seen and listened to. And they all have some inputs like Killian now with his boots and me with my shoes in the beginning or Iga when she tried to move into her shoe. These are like really fun challenges can be stressful at times. But coming from an athlete's perspective, some guys are just super chilled and like give me whatever you want and some others, they tinker for life and it never stops. So I think this is where we need to have strong teams in place that can speak to them, build product for them, but also sometimes mentally come everybody down that we'll get to it eventually. And it's just -- we need to also play the long game and understand some things just take time as well.

They also executed on your golf shoe briefing, right?

Yes. We're in the golf show, very excited about my new sport. Yes, retirement is good. You should try it out, by the way, gives you more time to play golf. And obviously, I'm very excited to see that we have officially moved into golf. And I think we can maybe also use the blueprint from Tennis when it comes to golf because football is very different in my opinion, even though that's a sport I used to play and then chose tennis over football and now I mean to golf, and it's a very exciting sport, very demanding, technically and mentally demanding and challenging. So love the shoe, really comfortable. It's great, and I'm looking forward to everything that's to come.

On a product integrity lens, right, where we spend a lot of time, it's beautiful to see now those overlaps. Obviously, your input also into training and how we think about lateral movement, how we take what we learned in tennis, we apply it to training, you being also on many different fronts. What is important for you, Thierry, when you think about this is a product. And you've been wearing our stuff now, please be critical. What excites you? What is that premium playbook that we spoke about all day for you in your mind?