PUMA SE (PUM) Earnings Call Transcript & Summary

Good morning. I hope all of you had a great first day. Thank you all so, so much for showing up tomorrow, this morning. We counted 20 participants. So it's not only we are the fastest sports brand, but we also have the fastest finance community. So thank you very much. We hope you all really enjoyed the run. Look, I think on your table, you'll find a little souvenir, which I think are compliant with every single gift policy, a little -- the memory of yesterday, having our special guests around. So please take that one home. Yesterday, the first day was all about the challenger. And we told you, let's say, what are opportunities which we have on a regional perspective. We showed you our strength, which we already unveiled in countries like India and Latin America and the big opportunities we have in U.S. and China. Today is all about product. I think that's all why we're here for, the most exciting piece. And we will show you the opportunities which we have on the running side as well on the sports style side and then show you what kind of strength we already are unveiling on the team sport side and basketball side. And we complement it with our foundations in sustainability and people first. And then finally, we go and open the showrooms to show you the exciting lineup for SS25. Without further ado, I hand over to Erin to go through running and training. Erin, stage is yours.

Good morning, everybody. We thought it was a great way to start the day with running since many of you are off a nice fresh morning run. Glad you've got the chance to test some of our newest products. So I definitely look forward to hearing your feedback. So I'm Erin Longin. I'm the Vice President of our Running and Training categories and here to talk to you about some of the opportunity that we have ahead of us. So many of you know that the global running gear market is the largest segment within the sporting goods industry, and it has the largest consumer participation on a global level, and the numbers just continue to rise. So it's that big that it's actually 3x the size of football in Europe, and it's 5x the size of performance basketball in the U.S. So this really gives us the largest opportunity to scale within a performance category. Now as Arne mentioned, we know why it's so big, right? Because we know that consumers buy running products for many different reasons. Of course, there's a lot that buy running products to run in. But running shoes cross over into everyday life, right, into multisport use, which isn't the same as other categories, with cleated products. And the good news is, for us, that running consumers are really open to new brands, disruptions and product innovations. It's a very rational market and rational consumer where innovative technology and great product solutions win and can break through. And we believe strongly that PUMA belongs in running, and the opportunity is there for us to gain significant market share and become a relevant running brands. The running category goes deep in the history of the PUMA brand. We've always been a brand with high visibility and credibility in the world of track and field. PUMA has been associated with so many iconic moments over time, like Tommie Smith's statement at the 1968 Olympic Games, raising his fist in the air. Also the amazing moments of the fastest man alive, Usain Bolt, always wearing PUMA, loud and proud. So we have this proven legacy and speed, and we've outfitted some of the most iconic athletes and record breakers of all time. Track and field gives us that edge and that credibility, but we know that the large commercial opportunity is in the world of road running. And as you guys heard, when it comes to road running, we're just getting back in the game. And we do know that it will take some time to build that credibility with consumers. We like to say that getting into road running is not a sprint. It's really a marathon. So we're at the beginning of this journey of this reentry into the space. And we look at this in a 3-phase approach. Each phase is intentionally about 4 years, which is the cycle of the Olympic Games, which gives us a really good time frame and road map for innovation. So Phase 1, we're still in the middle of, right? Phase 1 for us kicked off in 2021. It will end at the end of this year, and it was all about getting started in reentering the space. Phase 2 will kick off next year through 2028 through the L.A. Olympics, and that's where we're going to work on really strategic acceleration in the space. And that's all to set us up for Phase 3, which will come next where we'll be able to really scale and unleash our potential. So we're still a very small player today. We have a great start and great progress, but we believe there is so much upside potential from here. We believe we have nothing to lose. And as the third largest sport brand, we need to be participating in the largest sport category. So our goal in the future is to become a top 5 running brand. Our how-to-win strategy has 3 parts. First, credibility is crucial for success in the world of running, and we have to enhance our performance credibility in order to win. Next, we need strategies to really reach running consumers and show them the great products and initiatives that we offer. And lastly, we're doing this to gain market share, right? And it's going to take a really focused distribution strategy to do that. So I'll go through each one. Let's take a look at the first and how we plan to enhance our running credibility. So in running, performance credibility comes from exceptional product. And this was, for us, the main goal in Phase 1, was to build the best possible product solutions as we enter. And to win in running, we knew we had to focus on footwear. It is footwear first in terms of the segment, and you have to bring great solutions in footwear. That's where we focused all of our research and development now and in the future as well. And in footwear, it's all about key technology. So to be honest, we scrapped everything we had when we restarted this journey. We built everything from scratch, all new foam solutions, new plates, right? Plated products were really hot at the time. So we have our POWER PLATE and best-in-class rubber solution. Our PUMA Grip is kind of the underlying hero of our collection. We did this leading -- through working with leading chemists and biomechanical experts. But the backbone of what we offer in our running range and what makes us different is our NITRO Foam technology. This is an industry-leading foam innovation, and we know that foam is the most important part of any running shoe. So NITRO Foam is our own proprietary formula, okay? Nobody has exactly what we have, and we know it's superior because we start with superior raw materials. Then we use a very innovative nitrogen injection process. And the end result is this idea of superior responsiveness. It's a very lightweight and responsive product. And we can actually measure responsiveness by measuring energy return, the amount of bounce back of the product. And we know our metrics are leading the industry. We also are set up with the most robust supplier network. So the idea that we can stay ahead and keep innovating is really, really there for us. And most importantly, we are the only brand today that is using this type of foam across the entire product line. So when you buy PUMA running performance product, you're getting NITRO Foam. And we know that NITRO Foam has proven results with our athletes in running and in track and field. We've pulled NITRO Foam now across all of our products. So it's helping them break records, win medals and beat their personal best. Let's take a look at NITRO. [Presentation]

Okay. Now this advanced technology development wouldn't be possible without the help of our innovation team. And you saw a great video Maria showed yesterday with the leader of that team, Romain Girard. But they have a relentless approach to finding solutions that will help runners continue to improve. They help us improve technologies that we have today like NITRO, but they also are constantly looking at what's next and working on solutions that will bring in the midterm to sit alongside of NITRO technology. And our innovation team leverages, of course, internal but also external experience. We work constantly with an extensive supplier network, industry-leading biomechanical experts and universities and most importantly, our elite athletes. And I would say that the way the team works with our elite athletes is what really sets us apart from any other brands. We don't only build products and test and get feedback from our athletes. We actually invite them behind the curtain to be part of our product creation process. But instead of hearing about this from me, we asked one of our athletes to explain his experience with you. Let's take a look.

So my name is Karsten Warholm, and I run the 400-meter hurdles. The way we're working with the PUMA Innovation team is that they allow us to come with feedback. And then we can use their expertise, and they can use our expertise and our knowledge. So we work together to develop what hopefully will become the best product. It's really unique the way we have been able to work with PUMA in developing new equipment. It's been a learning process, and we always based it on the laws of physics, which makes sure that if you do it in the right way, it will work. And I think PUMA, as we speak, are in the forefront of this development. When we were in Vietnam, first of all, it was a great knowledge to see how the process is behind the product. And to me, I learned a lot seeing what's going on behind the scenes. And also, we got to meet a lot of great people, hard-working people that knows what they're doing, also to be able to meet them and to discuss with them what to do and how to further develop the shoes that I'm going to use in the Olympics, for example. We also did a lot of testing where some of the people from the Innovation team were there to see how the spikes were. So we had 3 test sessions where we improved the shoe over these few amount of days, and it was incredible. I really enjoyed my time there. I'm so happy to be able to be part of the PUMA family and be involved in making equipment for the athletes. Not too long ago, a shoe was a shoe. Now it's turning into a sophisticated music instrument. And if you are a violin player, I don't think you should choose the trumpet. So what I think is unique about the partnership is that PUMA allows me to work the way that we do right now. I can always reach out to people whenever I want, and they're always there to help. They want to make sure that the athletes and also myself get the best tools and that we get the support we need to achieve the great results that we are trying to do. So I think this is very unique in also the way that we can be hands on. I'm also really impressed with the passion and the results of the PUMA innovation team. They are not that many, but the results are fabulous. I think a lot of companies, they want to own the product 100%, and then they just send it to athletes. But we are able to look at it many times. We're able to test it. We're able to come with feedback, and we are listening to. And this makes a great cooperation because that is what it should be. It should be a cooperation.

So I think we work differently than our competitors do when it comes to creating innovations. And newness and innovation is very important to drive credibility, but it's not the only thing. One of the most important ways to drive performance credibility is actually through consistency. We know that runners want to find a shoe they love and know that brand is going to stay committed to that product and continue to update it, improve it and evolve it. So as you heard from Maria, we've identified 3 hero franchises where we will have this firm commitment to constantly evolving and improving the product. This is where we'll also invest our marketing focus and our go-to-market strategies. So first, we have Velocity. Many of you guys got to run in Velocity today. So that is really our go-to everyday cushioning daily trainer. We also have Deviate, which has also the additional POWER PLATE technology for speed. And then the ForeverRun is our modern take on a stability solution. So 3 intentional products with different consumer benefits to serve different consumer preferences. And again, we're committed to building these out over time. Some of our competitors who are farther ahead in the journey around number 20, 30 of these types of products. We're on number 3, 4, 5, but we have that commitment to continue and build that consumer loyalty. So next, I'll talk about how we will reach the running consumer in a stronger way going forward. In order to reach the consumer, we have to build awareness of these great products and technologies that we have and find ways to connect to the culture around running to become a loved brand in this space. So when it comes to building awareness, we believe there's a couple of ways that we can improve what we're doing, through media and influencers and also athletes. We know the key media that consumers are looking at, right, to really find out what products are hot, what works, what to wear. And we're actually lucky because from the start, we've gotten very strong reviews on our product line. So we're starting from a point of strength. But here, we are going to increase our investment in how we work with the media and the key influencers, content creators and reviewers in the space and enhance our seating program and relationship with them. We also have the opportunity to amplify the great achievements of our athletes. Our sports marketing team has been busy now signing more and more road running athletes to balance out our portfolio. While we have a great and established roster and track and field, we want to be more present in the road running world. So we're signing athletes with a focus on females and connected to our key markets as well for running. And you guys heard a little bit about this. It was a great moment for us a few weeks ago when 2 of our athletes came on to the scene for the U.S. Olympic trials. And if I could talk about Fiona for 1 minute. She came in first place at the marathon trials. She is the youngest ever American female to place in the trials and to win first. She also beat the record time that's been there since, I think, 2012 by 3 full minutes. And the most amazing part of this is it was her first ever marathon, her first professional marathon. So she really came on to the scene in a strong way. In that same race, we had Dakotah Lindwurm, who at the end overtook the person that she was kind of running neck and neck with to come in third. And the exciting thing for us was that, one, these are 2 of our female athletes, both on the podium, qualifying for the Olympic Games and both wearing our brand new Deviate Elite 3, which is coming out this summer, which is what I'm wearing as well. So an amazing debut moment to really show what our products can do. Now the story of Fiona and this woman coming on to the scene in her first ever marathon with this type of accomplishment might sound familiar to you guys. And today, you got to meet somebody with a similar story. Let's take a look. [Presentation]

Please join me in welcoming Molly Seidel.

Oh, my gosh. It's great being here.

Fresh off a run. I thought you could start by pointing out who in the room was the fastest and the slowest. How did these guys do? Did they keep up?

I think Arne was leading like pretty much all of them.

You're showing us up. Yesterday, I'm like nice go nice and easy. Anyways, thank you for joining us. Thank you for doing the morning run with everybody. But we were just talking a minute about Fiona, and your stories have some overlap, right? I mean just in case anybody doesn't know Molly's history. She started out as an NCAA champion cross country, right? Made that change to running marathons 2020. Similar in your first-ever marathon, qualified for Tokyo. And then went on to become an Olympic medalist, right, in 2021. Now the amazing thing is in the middle of this journey and all of this success, Molly decided to change sponsorships, right, and explore new brand partners. And I remember it was, what, December of 2020. You came to see us.

Yes, in the Boston office.

And we were one of many that we're trying to get Molly to come to us. Can you tell us why you decided to choose PUMA?

Yes. When I was changing brands at the end of 2020, I had qualified for the marathon. And with the Olympics being postponed, it wasn't going to be until that next summer. And so I was coming in at this really pivotal part of my career where I'd achieved a certain level of success, but I knew that I was going to be taking that next step up. And this next -- this transition in my career, I felt like I really needed to align myself with the brand that was going to -- as I told you guys in the office, I was going in with the goal of winning medals, and I needed a brand that was going to help me do that. And PUMA was just getting back into the distance running space. I believe the shoes that you guys sent me weren't even on the market yet. But the minute I put them on my feet, I knew it was just -- it was game changing and that was going to be it. And I think the first race I did in them, I PR-ed by about a minute in a half marathon, which is huge. And so I feel like from there, I've known that, that was the right decision in the entire time.

Yes. I remember when you were coming that day, it felt very intimidating. We didn't have any products in the market. We're like how do we convince an athlete to join us when we don't have a success record. But luckily, you saw the products. You believed in it, and then we've been together ever since. But I was curious how your experience with PUMA has been. Maybe you heard a little of what Karsten said. Do you feel that it's different, your experience working with PUMA?

Honestly, I feel like that's been the biggest thing for me, being a PUMA athlete. PUMA is such an athlete-centric brand. I feel like so many times, I'm being asked for my feedback on stuff, being asked how the shoes are feeling. I think there's -- sometimes in other brands, there is this attitude of, oh, the athletes need to conform to the product that we're creating. And I feel like PUMA, the entire ethos is really focused on how do we create the best product for the athletes, and that's what leads to the performance.

Yes, absolutely. And then Molly was the first athlete to really run in our original version of the Deviate Elite, and it became known in the industry and through reviewers as the Molly shoe. Everybody is where can I get the Molly shoe. Now we're on to version 3, and obviously, you saw how Fiona and Dakotah did. Have you been able to test the product?

No. I was in the Boston office a couple of months ago, I believe, in November, and we were in the NITRO lab actually testing versions of the shoe. And it was amazing to me because the first version of the deviate nitro Elite is the one that I won bronze in. And this current version, I believe it showed that I was 2% more efficient in the shoe, which is huge in running. That equates to about 3 minutes over the course of a marathon. So it's shocking to me just how much, even over the 3 years that I've been with PUMA, that the technology has evolved.

Yes, excellent. Now I know that unfortunately, you had to pull out of the trials this year, right, due to an injury. I'm sure you'll be cheering on your fellow American females as we get to Paris. But what are your goals? What are you thinking? How are you feeling?

Yes. Obviously, it was very, very disappointing, not getting to race. But also, it was like this bittersweet thing of like I was so sad I couldn't race. But then this -- the last trials, there weren't any PUMA athletes in the trials. It hadn't entered the distance running market. Now there are 2 on the podium. And so it was this incredible moment of just seeing how far we've come as the PUMA family. And I'm taking the time healing up, and I'm going to try and go for the 10K on the track, the 10,000 meters. So I'll be testing out the spike technology now.

Oh, nice. We have plenty of that.

Yes, I think that's -- it's just a reality of the sport, that injuries happen. But yes, luckily, there's always opportunities and different ways to spin it and making the most of the year.

That's great. Now I think one of the things that we loved about Molly from the start is we felt your personality was the perfect fit for the PUMA brand, right? Molly is somebody who brings joy and fun to the sport of running, which is something as a brand that we always want to do, is bring joy to sport. Did you feel that same connection?

Oh, 100%. I think what I was...

Did you see the embarrassing side...

Yes, exactly. I know. I love that the dumpster pick made it in there. But that first meeting in the office, I think Todd and I were just like kicking out over different technology, and you guys showed me the first prototypes of the Fast-R at that point. And I was like losing my mind because I've never seen anything like that. I'm very, very much into shoe technology. And so I feel like just the passion that you guys had for creating really quality product, and then also, there is this element with PUMA that I don't find with other brands of really like being willing to push the limits, being willing to try to fun new thing and really go for it. It's an energy that I think really sets the brand apart.

That's great. Thank you. Well, I mean a huge thank you from me, and of course, the PUMA family. You believed in us from the start, and we're still very grateful. And also, thanks for joining today.

Thanks for having me. Thanks, Erin.

So thank you to Molly. So we'll move on. So the other really important thing which Molly has a unique talent of doing is connecting to run culture, right? She makes her story approachable. Most people cannot run nearly as fast as Molly, but the way she brings joy and fun to it, a lot of people can relate to. When it comes to our opportunities to connect to the culture, we're looking at females in running and also races and events. We believe strongly that women are the future of running. We know that in the last few years, there are more women than men now participating in races around the world, actually registering for races. This is a massive change over 20 years. 20 years ago, it was a male-dominated race participation. So with the reset of running from the start, we had the opportunity to really focus on females. From the way that we build product, we have women-specific fits. We test product on women, which is very different from the industry. Typically, brands will prototype in just the men's size, test on men, expand it to women's sizes later. We do women from the start, so we can get feedback from female runners from the start. And then lastly, as you've seen, we're investing strongly in female athletes. When it comes to races and events, this is a key way to really connect to where the runners are. And it's a really important thing that we need to enhance going forward. So we're working on a new strategy to kind of ambush the 6 major marathons and show up with a unique PUMA activation that will give runners that PUMA experience every time. And you heard a little bit about HYROX. HYROX gives us another chance to reach more consumers with our product solutions. So HYROX is the sport of fitness racing. And what's unique about it is that it's half running, you're running half of the time, and it's half training. So it really hits both of my categories, which is great. And we know the preferred footwear to use in an environment like that are running shoes. So another way to reach the consumer with our NITRO products. And HYROX is expanding like crazy. Right now, they're in about 60 events. They will double that and expand their country footprint as well as they move forward. The participation rate is growing just as fast, and events in the key countries where they're more established are selling out. But by 2027, they plan to be at about 600,000 participants annually, which is a big number of consumers to reach. And we believe also this gives us an opportunity to really show what we can do on the apparel side as well across both running and training. This is definitely an untapped area where we have a ton of upside potential to reach. But we need to do a few things on the product side to better maximize this opportunity. So first, we're going to sharpen our USP, our design language, our differentiation in terms of how our products look. We're also going to sharpen our technology stories and really offer better technical solutions, which you'll see in our showroom today, comfort solutions like CLOUDSPUN or lightweight solutions like ULTRAWEAVE. And then we're going to establish a key item strategy that we're building now with long life cycle items, so when people find that tight they love or shirt they love, they always can come back to the brand and get that performance solution. So lastly, we're doing all of this because we want to gain market share, and we have a lot of market share potential to gain. So I'll move on next. When it comes to the running distribution, we have a very focused strategy to win here. We look at it in 2 buckets, very simple. The top of the pyramid is run specialty channel. This is all about credibility. It's been a really big focus of ours from the start. We know it gets us credibility, and it helps us reach the runner directly. The bottom of the pyramid is the sporting goods channel, which gives us the opportunity to scale. Let me start off with the run specialty. So from the start, we built relationships again before we even launched a shoe with key partners in this channel. We knew that it was crucial to get credibility to show up in this space. We have so much opportunity still to maximize. In the U.S., for example, we're in 100 out of 1,000 great stores, okay? So a lot of upside potential. We also, in the stores we're in, can expand shelf space and become a brand with a bigger presence. So in this channel today, we have our strongest sell-through. So we have a great start, and we have a lot of expansion opportunity. In sporting goods, it looks a little bit different. I would say we're hit or miss in our Phase 1 results in sporting goods, but we've learned a lot. We know we have to focus on our strategic partners in the space, even down to what doors we show up in so that our brand comes across in a really strong way. And we know we have to build awareness in order to have that lasting success in a multisport environment. And one of the most important things we need to do to drive sell-through is enhance our tech rep structure. I'll tell you guys a quick story about this. When we were relaunching running, we met with the CEO of run specialty account called JackRabbit in the U.S. It's now merged Fleet Feet, so it doesn't exist under that banner. But he said to me, it's so simple to win and running. There's only 2 things you need to do. The first is great product. The second are tech reps. So that's stuck with me through this entire thing. And I have to say, he's right. Where we have great tech reps and ambassadors that are winning the hearts and minds of shop staff and consumers at the store level, that is where we're the most successful. So going forward, we're going to increase our investment in this space around our key markets as well. So in summary, we're just in Phase 1. It's all about getting started. By the end of this year, we will have doubled our business from where we started in 2021. And as you've heard, we're the fastest-growing brand in Europe, breaking into the top 10 by the end of last year. And even in other markets like France, we've overachieved that, right? Brand #9 in France as well. So some strong growth, fastest-growing market share. As we look ahead to Phase 2, we're planning to triple our business between '25 and '28. Again, strategic growth. We don't want to shove a ton of products in the market. These are high-priced performance products. But we do believe that we can grow to this level by the end of Phase 2. And it's because we know that we have the winning formula, right? It's all about enhancing performance credibility first by doubling down on product excellence and innovation. It's about reaching the running consumer by building awareness and connecting to the culture around running. And then lastly, it's about gaining market share by focusing on those 2 strategic distribution channels and enhancing our tech rep infrastructure to drive that sell-through. So that's it for me, and I definitely look forward to showing you guys the products later today. Thank you.

Thank you, Erin. Thank you, Molly. Good morning, everyone. I'm glad to be with you today to talk about sports style. Sports style is the heart of our business. It shapes the image of our brand. But more than anything else, sports style gives our brand heat, and it makes our brand cool. My name is Lionel Telega, and I'm the Vice President of PUMA Sports Style. And I'm very excited to be with you today to share how many great new products we have coming our way. The market is starving for newness, and we are bringing it. When we talk about sports style, we are talking about the sport leisure segment, which are lifestyle products that are rooted in sports. It's the largest part of our industry. Sport leisure is a truly global business with consumers across all geographies, all genders and all ages that are wearing sport inspired clothes and shoes. To be successful in sport leisure, you absolutely have to be credible in sports. And PUMA is one of the few brands that has authenticity across different categories in sports. We've got heritage in motorsport, in track and field, in tennis, in football, in skate. But you also have to be credible in fashion. And PUMA has got the history of making that leg between sports and fashion. We have been doing that longer than everybody else, back to Walt Frazier in 1973 or Jil Sander in 1998, just to name a few. When you look at the markets in footwear, these are in the tens of billions of dollars. And today, we only have a tiny share. But we have really strong ambitions to grow. We are already a top player in core with our strong price value proposition, and we want to hold that position. But where there is the most potential, it's in prime. Our target is to build our prime business. And that's where our team is currently focusing on. So we have a tiny share today. We are the brand with the biggest growth potential, especially in the higher and aspirational channels, the prime and the select segment. Let's take a look at what we are changing to tackle that. Everything starts by our attitude. We are a challenger brand. We are the challenger. We are hungry. We go the extra mile, and we will disrupt. We are already disrupting the industry in football. We are already disrupting the industry in basketball. Now it's time to disrupt the industry in sports style. Sports style is PUMA's biggest business unit, and we are divided into 4 segments: select, prime, core and kits. This helps us to have one brand approach to bring more consistency to our consumers. Let's look at how we are going to work these segments to achieve our goals. This is the sports style pyramid. At the very top, you have select, then prime, then core. The 3 segments, they have different roles when it comes to financial contribution and brand heat building. Prime is the biggest part of the market. It's our biggest growth opportunity. But to get into prime, you've got to succeed in select, a smaller market but absolutely crucial when it comes to driving brand heat. One of the key factors for success is to bring products at the right time. In the last few years, we have been maximizing existing trends without having a clear and unique point of view. As an example, in terrace, with our Palermo, we joined the party, but when the party was already at full swing. To create brand heat, what we are changing is to focus on creating the trends, bringing to the market products and stories with a unique PUMA point of view. After many years of pursuing a volume business and growth for growth's sake, our strategy now is about creating trends and breeding franchises as brands. Our select, prime and core segments have vital role to play in the life cycle of any given trend. It starts with select, where we are introducing new styles and incubating new trends. This process takes time. But once a trend takes off, we are in the best position to make the most of it. That's what we do in prime afterwards with a wider distribution with our major key accounts. Finally, in core, we deliver our volume business when the trends are established. I will explain to you in the next slides our strategy to create new trends, to be on trend and on time and to deliver commercial results in the short term. Let's start with select. The primary objective with select is to create brand heat by creating the trends. Our select products are exclusively available to selected premium accounts like [ Keith ] or [ in clothing ] and also, obviously, our D2C. Select is the pinnacle of our sports in fashion offer, and it shows our point of view to the market to connect with highly influential consumers. Today, our market share in select is very low. That's because we have spent a lot of time catching up with trends. Now we are investing in creativity and in innovation to create those trends ourselves. What are our goals in Select? On an emotional level, it's to create a deep connection with the most influential consumers. And on the distribution side, our goal is to be one of the top 8 brands in the select distribution. Then the question is how do we get there. First, we have created a strong multiyear product pipeline with a unique PUMA point of view. Second, we are currently working with some of the most relevant partners to create hype like recently Ottolinger, Coperni or Noah, just to name a few. And finally, we are working with limited jobs to create scarcity and to create sell-out. And the success that we will create in select will have a halo effect on the entire PUMA brand. Let me give you a concrete example. In select, once again, it's all about creating the trend. The trend that we will own in the future is low profile. Low-profile shoes, they have a slicker look where the midsole is closer to the ground. We are currently creating this trend with the Speedcat and with the Mostro. Let's look at the Mostro, which we are bringing back after more than 15 years for new generation of consumers. To create the trend, we showcased the silhouette in fashion weeks, strategically aligning with industry leaders and tastemakers. Our big moment was collaborating with Ottolinger on their runway in March 2023. It was a perfect collaboration to tease the market about the return of the Mostro. Next, we showcased the Mostro during Copenhagen Fashion Week in the Paolina Russo show. Paolina asked us to have the Mostro in her show. We just confirmed the market eagerness for Mostro's return. And last September, we revealed the next Ottolinger iteration of the Mostro that is set to launch this month. At the same time, we had the pop-up store in Paris for the Ottolinger launch, and we totally sold out the collection. And then more recently, as you've heard yesterday, we literally took over the New York Fashion Week with the Mostro. That was one of the highest hype moment for our brand. But it's not just on the runway. It's also on the street with our ambassadors. The last few months, our ambassadors like Skepta or A$AP Rocky, they have been wearing Mostro. And it has been organically being picked up by the media. We are also collaborating with cultural authenticators such as Inside Tag who are passionated about heritage and culture. They are also very excited by the low profile trend and the Mostro. We are clear with what we want to own. We are clear that we want to bring PUMA's unique point of view through low profile in a market that is starving for newness. And the first results have been above our expectations. The market is ready for low profile. And the most important is that the market is ready for the Mostro. And our customers, they have the same strong belief that low profile with PUMA and product like Mostro is the next big thing. Here are my 2 favorite quotes. The first one from [ Nicholas Vien ] from Sneakersnstuff, "2024 is the year when PUMA will lead the low profile segment with its Mostro and Speedcat." And that's great because that's now. But what I really like to hear is the quote from Luke Matthews, Brand Director at size?, JD Group, "Now rather than looking outside, it feels like PUMA is looking within and telling the market what they want it to be." And that's exactly what we are after. Back to my pyramid, select is about creating trend and brand heat. What we do in select will influence prime and then will influence core. Let's dive into prime. Once again, prime is where we have the biggest opportunity for growth. Prime is the commercial extension of select. It's all about addressing sports trends through archive and new progressive designs. Success in prime is absolutely crucial. It's the biggest market with huge growth opportunities. It's an aspirational business with high ASPs and margin. And most importantly, it will help us building lasting relationship with our consumers. And on top, it really help us to build on the legacy and on the authenticity of our brand. This is how we are looking today in the prime distribution. We have been growing the last few years. But today, we still have a few products in the world. We still have a small share of shelves, even sometimes in the middle of the competition. We can do a lot better than that. Today, I'm going to tell you how we are going to do that. Our goal is clear in prime. We are currently in the top 10, and we want to be in the top 5. We want to increase our ASP and increase our profitability. We want to reconnect with our female consumer and our male urban streetwear consumers. How do we do that? First, by building long-term power franchises with a distinctive PUMA identity; secondly, by maximizing the trends that we will create in select; and then finally, by being on trend and on time to commercialize business opportunities. And one more point, as presented by Richard yesterday, we want to master influence. We will master influence to reconnect with our Gen Z consumers. Let's take a look at the market and at its segmentation within prime. We have classic, which is all about addressing sports trends we archive that does represent approximately 3/4 of the market. And then on the other side, we have progressive, a segment where we have a very strong plan to reconnect with our young urban male consumers, which is approximately 1/4 of the market. In classics, we can tap into our rich archive and our legacy in many sports. And for our key franchises, our key classics franchises, we have go-to-market plans, making sure that we land the right products at the right time in the right distribution with the right marketing support. Let's take a look at those products. With Easy Rider, we are taking the terrace trend to the next level through the lens of retro running. You all know the SUEDE, that is our most iconic product, and we've given it a new twist to make sure that we connect with the current skate trend with the Suede XL. Our GV Special [ text ] inspiration from our tennis archive and brings a new level of tooling and a new level of comfort to the white leather segment. And in low profile, we are very excited about the Speedcat, which will hit the stores globally this year. And we are already off to a great start with our Speedcat with a fantastic launch event that took place in South Korea last month, South Korea being a crucial market when it comes to creating the trends. Let's take a look. [Presentation]

That's a great video. But the most important is that the consumers' response has been fantastic. We sold entirely in our own channels in 30 minutes and [indiscernible] has sold 81% of their stocks in just 1 day, meaning thousands of pairs in just 1 day. And finally, our Palermo. Palermo hit the market end of 2023 and is also off to a great start. To support the Palermo, we've got marketing activities all around the world. As an example, we've done a big push with Palermo in Asia Pacific. Here, you have some examples from China. And here, closer to Europe and to the U.S., we've got a major collaboration with Dua Lipa with supporting the Palermo and wearing it during her latest music video for the song Houdini. Let's take a look. [Presentation]

That's exciting. After classics, now we have progressive. It is our priority to bring newness to the market to reconnect with the young urban consumers. We've listened to our accounts, and we've made newness an absolute priority. This is our lineup for the next seasons with 2 main product priorities in 2024: with the Inhale, supported by A$AP Rocky; and with the Mostro that is currently in select in 2024, and that will cascade to the prime distribution in 2025. So we have exciting newness for 2024, and we have a strong lineup for the next few years. Here is the Inhale, supported by A$AP Rocky, and then the Mostro that I showed you, I think, in details earlier. And to support some of those initiatives, we have the support of the most powerful, the most iconic couple with Rihanna and A$AP Rocky, Rihanna supporting our classics product portfolio and Rocky supporting our progressive strategy. As we have said, our winning formula in prime is clearly marked out. It all starts with products. And as you've seen, we have some great products coming our way. We've got a strong marketing strategy. We want to connect with Gen Z and master influence. In footwear, we are leading the trends in apparel complements. And from a commercial perspective, we are looking -- we are working in close partnership, close collaboration with our strategic accounts, Foot Locker, JD and SNIPES. From November 2023 to May 2024, we have 6 major franchise launches. In select, we have the Inhale, the Speedcat and the Mostro. And in Prime, we have the Palermo, the Suede XL and the Easy Rider. And this will help us to create new trends, to be on trend and on time and deliver commercial results in the short term. When we look at Google Search, because I know from Arne and from Gottfried that this is an important measurement for you. You see that our newness, Palermo and the Suede XL are already performing better than any of our franchises from the last few years. And on top, like for select, we have the commitment and the support from our major accounts, like you heard yesterday from Sven from SNIPES during Arne's presentation. But on top of that, here are some very enthusiastic feedbacks from [indiscernible], the Buying Director at [indiscernible], one of our biggest European accounts. [Presentation]

Great. Then from select to prime to core. Let's dive into core. If you want to be strong, you've got to have a strong core, and that's true also for our business. In core, it's all about mastering the fundamentals by having the best price proposition for everyday consumer. What are our goals in core? Our goal is to defend our strong position and further increase market share by growing with our retailers and be in the top 3 in all the markets. And on top of that, we want to start establishing higher price points. How do we do that? We will continue to offer the best price quality through fashionable and comfortable products. And obviously, we will commercialize our product through the halo effect that we will create in select to prime and then to core. In core, you can see that great products with the right balance between the commercial price and good quality can deliver fantastic results even without marketing. This applies to our footwear products like the Caven and to our apparel lines in general. But that doesn't mean that we are completely ignoring the category. We can do some very effective activations to take it even further. So we don't have big campaigns, but we do smart focused ones, resonating with the local target consumer audience, like the ongoing campaign that we have with DEICHMANN and the Zarrella collection that is very successful. We've been talking so far about select, prime and core and how they work together as one product ecosystem and so far, our focus on how we are winning in the adult market, but I don't want to leave out what we are doing to attract the consumers of tomorrow, and that's the kids market. We've got very exciting products, stories and concepts coming our way in this crucial market segment. To conclude, we are the brand with the biggest growth potential, and we want to move faster than the competition. We aim to win market shares to become a top 8 brand in select, a top 5 brand in prime and to be in the top 3 in core. We are clear and we have a clear strategy to each segment with great products with a lot of newness. And as the challenger brand, we are absolutely committed to delivering results. Thank you. [indiscernible] to Anne-Laure.

I do apologize in advance. You have to be with another French accent for the next 30 minutes. The third one today. But I try to be efficient and sharp like sourcing is. So my name is Anne-Laure Descours. I'm the Chief Sourcing Officer for PUMA. I look after 2 very important area of the business, sourcing and sustainability. And I'm going to try to be efficient and sharp to walk you through what we do on that side of the business. So I'm French. I'm based in Hong Kong actually for 30 years, and sourcing has been my life. It's still really a key area of what we do. And what is sourcing for PUMA? It's really making sure we can provide product solutions and margin to the business, to make it very simple. So the role of sourcing. When I started 30 years ago, what we did in sourcing was about product quality, margin, landed cost. That was the core of what we are doing every day. It was about chasing for the next cheaper product somewhere. What happened in the last few years, the complexity of sourcing has increased tremendously, a, because of sustainability and compliance, but also recently about the risk mitigations and the resilience we have to have in supply chains that was really illustrated during the COVID crisis. And to support all that, we had also to enhance our systems between the process and the transformation and the data flow. Our key competitive advantage, and I'm really proud of that, a, we deliver margin and [ FOB ]. And I know this is important for you guys. Trust me, we do a hell of a work to make that happen, pushed by my dear colleagues from the subsidiary that want us to make the impossible possible. One really key part of PUMA, which is unique also to my organization, we have integrated product development into sourcing. Most of the trade today still have product development under the product team. We made a conscious decision some years back to integrate product development into sourcing for one reason: because we want to build a product to cost. And to build a product to cost, you have to be sitting with your suppliers at source in the factories, and the largest part of the product development organization is sitting between China, Hong Kong, Vietnam, Cambodia, Bangladesh, Indonesia. That gives us an edge to really make sure we deliver the price we need for the business. The second key competitive advantage we have is the partnership, and I will elaborate on that. Our vendors are part of the family. We grow together. We go through s*** together, and we have quite a lot of s*** on a daily basis. This is the heart of the business. But we continue really bringing us to the next level. As an organization, we are ensuring that we stay very pragmatic, and we make fast decisions [ under ] very speed drive. We get the basic rights. The basics are very easy for us. It's the right product delivered at the right time with the right quality at the right price. This is the base of what we do. And to do that, we stay humble, we look at providing solutions -- pragmatic solutions to make sure that the business can deliver. To do that, of course, we're very agile. And my age is probably this, but my team is very young, so they're very, very agile. They look at multiple options to deliver and to serve the business. And recently, we have also invested quite significantly in managing data. Today, to make sure that we run the business with no risk, we have to have millions of data to report back to the regulators, not just the regulators, but also multiple stakeholders. So we have been really working on automation, data usage and data flow as a backbone. And as a matter of fact, we have a dedicated team sitting in Asia to help us enhancing this data and digitalization road map. So landscape. We're very focused. We have 150 vendors in 29 countries worldwide. And here, this is actually the split between Asia and the rest of the world. Asia is still the core of sourcing today for PUMA, both footwear and apparel. Our 6 more important countries are China, Vietnam, Cambodia, Bangladesh, Indonesia and India. China has a share which we have to take into -- I need to explain to you a little bit. The 32% actually -- part of that 32% of China is serving surely for the local for local for the China market. So China export is about 25% and the rest is actually going for the China market directly. Because we are focused, we don't have so many vendors, and 45% of our suppliers actually have been with us for over 10 years, and 11% of our vendors have been with PUMA for 20 years. 24 of these vendors do 80% of our business. This is really critical for us, and we made that conscious decision to grow with the suppliers to make sure that they can serve us for multiple countries of ranging perspective. That provides to us efficiency, speed. Instead of onboarding a new vendor, we onboard a new factory. So that new factory is completely already trained for the new -- for the system of PUMA for the regulations and the compliance of PUMA that will also help to build also a better environment in terms of business. So we have a strong sourcing entity, rooted in partnership and commitment between us and the vendors. Our headquarters is in Hong Kong, for my case, but the footwear team headquarter is between Vietnam and China and apparel is in Hong Kong. We are really localized next to our vendors. Some of our people are really working also in the factories directly, and we have also made sure that the management managing sourcing locally is coming from local people. Our Head of Bangladesh is from Bangladesh, our Head of China is from China and same apply to Vietnam. We really want to enhance this capability to be very present in the country. We innovate together, and we invest together. And here, I want to share with you one testimony from one of our key suppliers. You saw actually [ Leslie ] from Royal on Erin's video earlier. Royal Footwear has been with PUMA for 20 years, is a key footwear supplier that really help us in innovation, both from a track and field standpoint, but also from basketball. Here's [ Leslie ]. [Presentation]

[Foreign Language] from Vietnam. Royal Group has been a proud partner of PUMA for nearly 30 years, and it is with utmost pleasure that I share with you some of the key elements that have enabled this valuable partnership to flourish. PUMA clearly considers its supplier partners to be an integral part of its business and ensures that communications are rooted in trust and transparency. In 2018, PUMA trusted us with the basketball category. Working alongside PUMA from development to manufacturing, we identified and implemented innovative solutions that maximize market appeal and manufacturing efficiencies, resulting in success stories such as the LaMelo series and the Clyde All-Pro's. This collaborative approach is also replicated in other categories, such as running with their class-leading NITRO technology, sports lifestyle, golf and even track and field shoes. We take pride in being part of making products in cooperation with champion athletes and celebrities alike. Another integral part of PUMA's culture is sustainability. With PUMA's guidance, we have actively improved employee welfare through programs such as better works and worker voice. By 2025, we will declare science-based targets to reduce greenhouse gases through projects implemented by the GIZ and PUMA, such as climate action training and resource efficiency. We look forward to further strengthening our partnership with PUMA as we work towards our shared vision of creating sustainable, exciting products that inspire our consumers. Thank you.

So we're proud to be a family also with our vendors. And we last year hosted the vendor summit here in Herzo to make sure after COVID, they had the opportunity to regroup also with people from headquarters. Thanks to them, we are able to navigate a very volatile environment when it comes into sourcing. We have surprises on a constant basis. So what are the 3 key areas of attention for us today? Resilience, manufacturing transformations and agility are really our key focus. When it comes into resilience, we have 3 current challenges: regulatory landscape, I'm sure most of you coming from Europe are very familiar with the regions when it come into sustainability and regulations; inflations; and also decoupling and relocalizations. To navigate these situations, we have 3 different topic areas: a, supply chain diversification; b, product cost optimization and logistics excellence. When it comes into supply chain diversification, 2/3 of our main vendors have a multi-country of origin capability. This allow us to decrease dependency on any single sourcing country and really help us to manage the risk. As a matter of fact, during COVID, when one country was closed, we had the opportunity to move to another one. When Vietnam was shut down, we moved production of footwear into China. That really provides us an edge to make sure we could navigate all these situations. And we also never shut down any order or any factory during COVID, maintaining this openness to make sure we could react fast. Being able to source product from multiple countries really help us to answer the market response and disruptions. Here on the screen, you see the countries where we have a global sourcing, which is the case for Bangladesh or Vietnam, but also the green ones are the ones where we do local-for-local sourcing, which I will elaborate later, China being a mix between local and export. When it comes into product cost optimization, we have had hard to really design to cost. If you have $10 to spend, you need to build a product for $10, not for $12. So we really look at a better cost control, combined with traceability and speed. We also have our suppliers that have built through our common strategy, a vertical integration setup. Why we want them to be vertically integrated, not just from a product manufacturing but to material manufacturing, 2 reasons. A, materials represent more than 50% of the project cost. If a vendor has integrated the material production, they manage the cost better. B, when you integrate your material production within your space, you also have more flexibility and you address speed. In the footwear sourcing, our vendors today have integrated the manufacturing of the outsoles. In the apparel, our top vendors have other a complete verticality from a yarn to finished product or for materials to finish product. This also lead us to long-term commitment for our vendors to bring efficiency and reduce costs and deal with the inflation today. They need long-term commitment, so they can plan their investment. This is something we've done consistently for the last 10 years, which has lead us to have now manufacturing in multiple countries. And of course, we need to simplify the way we do business through material consolidations and system integration. Logistic excellence. We have a very, very strong partnership with Maersk. This collaboration has moved from a transactional business to a partnership business since 2018 and has regular conversation with the top management of Maersk. Our people here from the team have also a regular conversation, discussing on rates and also solutions whenever the logistics situation becomes a bit complicated. Now manufacturing transformation is very also impacted again by regulations because the consumer and regulators demand for change when it comes into the project. What we do here, 2 things: more sustainable products and more sustainable process. One example of more sustainable product -- a few examples of more sustainable products. We've been really working on product excellence. Quality means a lot to the consumer. If you want the consumer to buy again a PUMA product, we have to have very strong quality and durability. Then we also have to look at lowering our emissions in terms of materials. We use mostly recycle -- a lot of recycled materials when it comes into footwear between recycled EVA or recycled rubber, but also look work a lot with recycled polyester and cotton when it comes into apparel. Last but not least, waste is becoming a huge topic. We work with our suppliers through robotics, automation and usage of analytics for better planning to reduce waste in terms of manufacturing not only from the material, but also from water and energy savings. More sustainable process is about data. We need to make this data flow and data transparency being available. We bring capability to provide this possibility and this transparency, and we invested into 3D sampling, better machinery for resource efficiency and better consumptions and also renewable energy. Last but not least, agility. We really need to have an adjustment ongoing to the market needs. We need to be able to provide shortcut to the countries whenever they need speed programs. Shirley elaborated yesterday on the speed program from China. We have similar speed programs in other countries. We also ramp up digital sampling using the new technology for a faster approval of product. So bringing from design market in a much faster way. And we work very closely on material availability, having material ready provides speed to the execution. An example was the FENTY Creeper Phatty. Between the moment we signed with Rihanna to the moment the shoe was in the market, it took only 6 months. And of course, we look at material consolidation for better FOBs. Last but not least, local for local. It's something that PUMA has established many years ago, even prior to my time. It started, I think, in Argentina and Brazil long time back to build the footwear capability locally. This local for local really is a competitive advantage for PUMA in multiple countries. We have local for local in Argentina, in Brazil, in India, in South Africa, in China, in Indonesia and in Turkey. That help us, a, to support the country locally to build a product that is relevant for the market in a very fast speed, but also when the situation from a trades point do not allow to import product into the country, like the case now for India in footwear, we have the capability to serve the country very fast. So we provide good margin -- great margin, great FOBs. We are a strong partner to our vendors. We are very pragmatic. We get the basic rights and we bring agility through data and also digitalization. This is where we stand as a PUMA group sourcing. And we believe that we have the right tools and the right values to address all the challenges and to support the growth of PUMA. So that's the sourcing presentation. That leads me now to sustainability, very close to my heart and now very close to the hearts of many people. So sustainability for PUMA is actually a journey. It's not a destination. And PUMA has been one of the very first brand that had really built sustainability as a backbone of business. It's part of the DNA for many, many years. It's now touching every part of the business. It used to be an expert conversation. It became a business conversation. As a matter of fact, in PUMA, sustainability is embedded in every division of the business, from product to supply chains to finance, to sales or logistics. This is now driven very much by stakeholders for a long time, but now regulators came into the party. Stakeholders and consumers are really expecting us to reduce amount of footprint and to look after the workforce whenever we produce and the regulations are a kick off to really add complexity into the journey. So what is sustainability at PUMA? It's a vision which is really brought by the management Board, executed by operation, touching economic, environmental and socials. And our mantra is really forever better, where forever, means sustainable, caring for the needs of the present without impacting the future and better in responding to environment, economic and social opportunities and the challenges that we face. This also is key for our people internally. The average age of employees at PUMA is in early 30s. Sustainability is one element for people to decide to work for the brand, and we are very proud that we involve them also in this conversation. It's supported by the management. And as a matter of fact, it's also part of our bonus. So we pushed the boundaries for the last 20 years. We were the first one to publish our own EP&L in 2011. This with an ambition to be transparent, about the cost of environment and committed to mitigate that cost. We also were the first one in 2016 to launch a further better finance program with IFC, which incentivized the vendors for better scoring in social environmental to get lower rates. Then in 2018, we were one of the founding members of Fashion Industry Charter for climate Action, which is under the UN, an association that released conversation with different governments on energy particularly. And recently, we brought on board some young voices, 4 young voices, to help us to shape the conversation with the next generation on sustainability. We listen to them and they help us also to educate, engage and co-create with PUMA to improve our communication, but also to understand what this generation expects from us. This led us to very strong external recognition. We're very proud of that. It helps us to measure where we are, but also help us to measure what we need to improve for the future. I want to call out here 2 very important ones for me personally. The first one is CDP, the Climate Disclosure Project, on climate. We ranked A for the second year in a row, and CDP has assessed actually 21,000 companies. Very few make to A; and for the second year, we still got A. The second one, which is also very important, is the Platform Living Wage Financials, the PLWF, which is a coalition of 20 financial institutions for which we are the only brand that leads the category of leading category for our work on fair income. So how do we work on sustainability? We work by 5-year cycles. We are now in the middle of 10 to '25, and we are building now '25 to '30. 10 for '25, as of today, we've reached already 8 -- 2 of our targets. We still work on 8. We have 28 subtargets. Of the 28, 19 already achieved. For example, we completed the fair wage assessment for the top 5 sourcing countries, we map our subcontractors and Tier 2 for human rights risk. We eliminate plastic bag from the stores and -- from our stores. And we also spent 57,000 of humanity hours -- of community engagement for our staff. A few of the highlights of 2023. We reduced environmental footprint in terms of CO2. Our suppliers improve their waste management in factories. The worker safety being key, we signed Accord in Pakistan on top of Accord in Bangladesh. We ensure consumer safety by using only materials that pass RSL testing, and we train more than 226,000 PUMA staff and workers for women empowerment since 2021. Now when it comes into 2030, this is the road map we have. We did actually a double materiality exercise in 2023. It's now compulsory under the CSRD in Germany. This double materiality allow us to understand what is the impact we have on people and environment, but also what sustainability impact is on our business, the risk and opportunities. Based on the material assessments, we're going to move on to a stakeholder dialogue in April, where we bring organizations from a sustainability standpoint, stakeholders, but also customers with us and vendors to define our road map for 2030. Very likely, our road map will be focused for 2030 on climate circularity and human rights. I'm going to walk you through the highlights on this, the different topics. So climate. Again, very connected to regulations. I mean the regulators have kept us very busy for the past 3 to 4 years. The landscape has changed and the impact now is on the entire value chain from project design and marketing and sales. But our long investment in sustainability actually positions us very well to make sure that we can deliver against the regulations. We have revised our science-based target this year. We are aiming having 90% of our absolute emissions to be reduced by the -- with the baseline of 2017. But the most challenging part for us is about supply chain. Actually, 70% of greenhouse gas emission from a PUMA brand come from the supply chain. And the objective is to reduce 33% of our emission on the 2017 baselines. That shows you here the graph, 2017 being there. We estimate 2030. So if you look at 2030, basically, we have took up 50% of emissions on the 2030 projection. How are we going to get there? It's about renewable energy at supply chain. This is where the conversation with local authorities is critical for us because we need to make sure our vendors have access to renewable energy. There are a lot of programs in different countries. I was in China last week. China today is basically financing solar panel roof for multiple suppliers. So we have a good trajectory in China to get to more renewable energy. It's about lower emission materials, increase of low carbon materials and material innovation, where [ Romain's ] team is helping us together with the vendors to get there. And it's about partnership not just with the vendors, which is absolutely critical, but in sustainability, the partnership with the other players, the other competitors, but also associations such as Better Cotton Initiative, Fashion Pact are critical for us to get there. We commit to net zero by 2050. Now when it comes into circularity, it's about innovation and collaboration. Innovation is key. We need to find ways to make our product circular, but collaboration is the vehicle for us to get there. It's collaboration internally between the product team on the BU level and the sourcing and the vendors, but also it's really externally as well with the partners and competitors. Two examples here, one on innovation with RE:SUEDE that we -- an experiment we did 2 years ago to test biodegradability for footwear. We proved that it was possible. And what we did with the result, we shared with the community of our partners, but also our competitors to make sure that this capability could be expanded beyond PUMA. And when it comes into collaboration, the RE:FIBRE, which is textile-to-textile recycling, which I'm very proud that Puma has really developed, has been the complete collaboration between chemical companies, yarn supplier, material supplier, garment suppliers, but also some outside companies as well. Let me show you a movie to explain the technology. [Presentation]

The good news is this technology is nearly cost-neutral compared to bottle recycling. So we're going to enhance and expand the offer of RE:FIBRE. We started actually with Matthias on Teamsport, with the pilot phase in 2022. Next year, or this year in 2024, we're going to provide most of the Replica business using the RE:FIBRE technology, and we want to expand this recycled polyester options to the rest of the range after 2025. This has been supported very strongly by the Teamsport guys and by the clubs. We have taken back bins in the clubs and in the stores of the clubs. They also help us to do activations to make the technology known by the fans, and we could see that the traction was actually quite strong here. Last but not least, human rights. For many years, we built a very solid and comprehensive compliance system on 3 levels: due diligence. This is why we foster sustainable and responsible corporate behavior. We anchor the human rights, environmental considerations in operations and corporate governance. And all the policies and standards that we have in place are reviewed regularly by Fair Labor Association. We ensure that there is a grievance mechanism in case of issues in the factories. Our people on site are being trained, but also we provide hotline for the workers to reach to us whenever there is an issue. And we make sure we train through building capability programs, the factories people but also our own people. We want to continue to focus and raise our ambition. This was identified through the materiality exercise we did. We're going to focus on labor conditions, fair income and gender equality. So as a wrap-up, we are open and transparent in our work on sustainability because we believe transparency and openness lead to collaboration and innovation and that will lead to a forever better. On the pitch, we are competitive. But when it comes to the planet, we play as a team. There is one forever, let's make it better together. Thank you very much. And with that, I hand over to my friend, Dietmar. [Presentation]

I was asked the other day by an HR auditor: "Dietmar, how do you ensure that your empty experience is consistent with your employer brand?" My answer to this was simply, we just share what we are doing at PUMA. Because nowadays, a good employer branding is coming from within, and you can't miss up nowadays with candidates and employees anymore. And I hope after you experienced the first 24 hours here at PUMA and watching our lovely location video here in -- about Herzogenaurach, you agree to that statement. I'm Dietmar Knoess. I'm heading up people and organizations since 13 years here at PUMA, and I probably have one of the best roles you could possibly have. Why is that? Simply, I'm heading up people in a people-centric company. So -- and that's actually the topic I want to talk to you about, that goes people centricity what we call internally People First and what is the strategy behind it. I want to share a few stats about PUMA, how we do as an employer. And while we are sitting here or standing, a lot of stuff is happening around us. There are some macro trends affecting the way we're going to work moving forward. And I want to give you the answer how PUMA is tackling these topics. So People First is something you have heard quite a few times. You heard about how much PUMA is caring about people. And of course, you have seen this triangle from Arne with a very strong foundation, which is a focus on People First. But that's nothing you can, yes, delegate or just define from the top as a management team. So People First, not something we're just putting in a paper strategy, it was more something which has been growing over many, many years. And the way how you grow as a People First company is simply that you generally care about your people. You care about their physical wellbeing, their mental wellbeing and their financial wellbeing, and you generally care. Because only people you look after can care about athletes, consumers and partners of the organization. That's the only way how you make it possible. And you heard about the last 2 days quite a bit, how much we care about our athletes, our retailers and our vendors. So -- and People First was, again, not something which just was created for us. So because we have been listening to our people for many years, internal, external platforms, and People First was something which actually was coming from our employees. Because comments they made on internal opinion surveys or on rating platforms externally, and you heard more and more People First. And then we said, why not take this as one of objectives of one of our foundations, and that's what we actually did. So it was actually coming from the inside out. And what we're doing as a company is simply that we focus on workforce diversity. We are a global brand. We do business in 120-plus countries around the world. And in order to run this business successfully, we need people from around the world. Because there's different ways how to look at the world, and we're all right and wrong at the same time. And we need those people. And we're able to attract those people. You're running around a campus. So we're an attractive brand, and we're able to attract people from on the world. But one thing is to get them here, of course, and then you need to care of them, what we call with an inclusion. So we invite them to the game, but we need to allow them to game. And the way we allowed them to the game is that we foster culture that encourages collaboration and teamwork. And you also heard that the word team quite a bit throughout all the presentations here. And it only works if you give also autonomy to the people. We are much leaner than other companies. That only works if you manage the organization by objectives and you give them a certain autonomy to act in a certain framework. And last but not least, we are listening to our people. We're using any opportunity. No matter it's up in our team that you just pass by so that people can reach out to you as. As a manager, we do regular feedback surveys, smaller ones, bigger ones. And of course, we are listening what people are talking about us outside because there are also platforms outside where we now see what people think about us. So what's also quite important, you see our values here internally. You might have seen when you walk by the P&O office, be present, be vibrant, be together and be you. Be you is the most strongest one. Why? Because we want people to be authentic. We want them to be exactly the same people as they are at home. We don't want them to change because that's the only way how can you value diversity. If you hire people from around the world and you want them to play a certain role in your company, it's not going to work. You can only harvest the benefits of being diverse if you let them being diverse. And if somebody wants to wear a headscarf, they wear a headscarf. No one needs to hide a tattoo in this company. We have here a prayers room. If somebody wants to go and do a prayer, it's absolutely fine. If people want to do meditation, it's also fine. You need to value this diversity in the organization. And that's what we're doing. And again, it's quite important that we have very authentic people know and what they say is what they mean. So what are the benefits of it? It starts with an high employee engagement. And I will share in a minute our stats, sharing the results of our employee opinion survey. And only if you have engaged people, they are happy, they are able to contribute to a positive work environment. And also, that helps us because they speak with other people. So the word of mouth is quite important to attract talent to our organization. So it helps on the talent attraction and retention. Of course, no one wants to leave typically a place where they feel welcomed. And last but not least this past environment, we are a creative organization, encourages people to be creative. Again, only if they can be themselves, if they can contribute the game. If they can raise the concerns, if any, if they can share the ideas, and that's what's all about here. So long so short, there is a business case and our investments in People First is paying off. So how did we do? Over the past years as an employer, I was sharing some stats yesterday already. I just want to make sure I have a certain consistency, say the same stats. So we grew our population by 2.6%. We have now 21,170. So our turnover last year was 23%, and we need to differentiate. So we have a strong retail operation, roughly 56% of our population works in retail. So we have a higher turnover, 38.5%. So we had a slight increase from the 36%. I will refer to that in a second. In corporate, we had a turnover of 6.5%. And we saw a drop, coming from 12% in 2022, from an all-time high, actually we had. And I think that's what all companies experience around the world. Our average age is 31.8. A lot of companies here in Europe talk about Gen Z and how to get and how the retain Gen Z. I mean, when, you walk the aisles here, we have them. It's our key customer and so we understand our key customer well because we understand our people quite well here. And we are promoting -- sorry, we are filling 81% of our leadership roles worldwide from within. And we're doing that over the past years already. So I think the last 5, 6 years since we are tracking that, at the moment, we have that consistency. And we think that's the right balance. So if you say 3 out of 4, 4 out of 5 positions. And why we're doing this? To retain this wonderful culture we have in at PUMA. If you would hire too many managers from the top, from the outside at a moment, we had risk to lose our value, our fabulous culture here at PUMA. But we also open if you see a need on certain skills we can't fill roles from within. We are really not too proud to go also to the outside actually and hire people where needed. So I was sharing the turnover rate and then also I want to say there is a difference because the turn rate in retail, so we have some structural turnover because when we have students working for us in the store, it's very likely that they're going to leave us one day. Of course, I mean if they finish their studies, often, they don't work in the store. So we have some structural turnover at the moment. So what is very important for us when you read our turnover numbers is what is the retention rate or the staff turnover on the store manager side? And you see that we saw a drop from a 17% to a 15.3% on the store manager side. And these are quite important because these are the representatives of our culture. Those are the ones we need to retain and make sure that we have a certain consistency over time. So we talk about the corporate world, so we see that we had a significant drop again on the turnover side from '22 to '23. And then we need to talk about management roles, which are also key for us to maintain that culture. And we just had a turnover rate from 6.2% in management. And we look at the Germany corporate, it means this location here, we had a turnover rate last year of 5.1%, coming from 10% the year before. A few other stats. So we are hosting 143 different nations around the world, which makes 75% of all UN countries in the world. And it's quite important that we have people from all the world. So when we look at our headquarters, we're having 77 different nationalities here. Some people say, "Hang on, Dietmar. You said 86 yesterday." That's true, because we don't count the interns here, typically in that number. So we have about [ 200 ] interns here per year at headquarters, and they bring also quite a bit diversity into our organization. So -- and that is the question: So how many people are German, non-German? That's a number to share a bit to know how serious we mean with our diversity. So almost half of our population is non-German. And you might have noticed it as well. I just checked the number this morning, by the way, we went also up now. We have only a share of 52% Germans here. And there's nothing wrong with Germans, by the way. Yes. I just want to say that. So we just believe we are the global headquarter of a company. And of course, we need that diversity. And yes, and I come to a macro trend as well, which is going to hit us, what also explains why we were investing so much into diversity. When it comes to gender distribution, 50-50 looks like that I was tracking a bit. And when you look at the stats over the past years, more or less the same numbers, 50-50. But I swear, I don't do anything on that. That's naturally happening. What's also naturally happening is the share of women in so-called STEM roles, which in Germany called MINT, or in English scientific, tech roles, engineering and math. And our share of women is 45%, and that naturally grew to that percentage. What also naturally grew was the share of women in leadership, which is 43%. Believe it or not, we don't have any quota in Puma. We never had any quota when it comes to women in management. We have one according to the Corporate Shareholder Act where we need to set targets to the outside. But to the inside, we never worked here with any quotas. You can believe or not. So I promised to share some stats with you. Employee opinion survey, we run a big survey every second year. We run pulse surveys in between. We ask more than 50 questions split up in multiple categories. I was picking the most important one. So typically, an employee has 3 choices. He/she can give us a positive feedback, can give us a neutral feedback or a question mark or a less good feedback. So this survey has 3 options. What I'm showing to you here, the white bars are the positive feedbacks only. So we have been serving our entire population. We have a participation rate of 85%. I'm not sure whether you have ever run an employee opinion survey. But typically, if you get 65% participation rate, this is fantastic. Again, we have 85% of our population of Puma participating, including retail. 15,400 people, it's very representative. So when you look at the first bar here, in my eyes, it's the most important one and maybe the most important one for you: how engaged are people here at Puma. Because this category subsumes also the questions how much people believe in our vision, our goals at Puma; and how well people get along with each other; or whether people are recommending Puma as an employer of choice. Because these are 3 questions we've been asking, which are scoring 92% and even higher than this. And again, numbers are quite representative here. And the other, what you see on the right-hand side, is how we are doing against the 2 previous surveys we did in 2021 or in 2019, and how we're doing against a retail benchmark. That means compared to other retail companies. And the right, very right column, you can see it's probably one of the most important ones is how we do against high-performing companies. So what is a high-performing company according to this benchmark? It's the top 30 companies having the best survey results and the best business performance. And Puma is one of it. So you can see a lot of green. That means we are outperforming in those categories, the high performance. And not just since last year, so we are consistent when you also look at the '21 results. We also listen to the outside. And this is just one platform you can go, it's called Glassdoor. There's some others indeed. And comparably, you can also go on these platforms, you will see a similar picture where you can see how we're doing against our competitors. And we didn't disclose any numbers. You can do that. I can tell you the numbers look great. But when you see the green areas, those are the areas where we're leading the pack in these categories. And when you see the green areas on competitor A and B, that's where we're at eye level with them, right? So in general, I can tell you that in all KPIs or all categories, we're leading the pack here against our key competitors. There's also a question why we also have a 4.1 than competitor A. I can't tell you. There's a certain algorithm behind it. I don't even understand. But that's what it is. But generally, in all subcategories, we do much better than our competitors. And that's a very important message. When you go to Glassdoor, you can also see employee reviews. And I can tell you, we answer every single review not just with thank you for your comments. We take it serious. We read those comments. If it's coming from a market, we reach out to our head of P&O on those relative markets and everyone gets a qualitative answer on this, if we can. If somebody is just venting, then we can't. But if there is a qualitative comment, we are answering all that. And we're doing that since probably 11 years, when you reach out back, so there's a certain consistency as well. So what we're very proud of is a lineup of awards we have been winning recently. There are a lot of awards. Some awards, they're just coming. So there's some big magazines or newspapers. They survey. Some of them we work together. With Statista, Statista is typically serving 200,000 people around the world, multi-countries. And we're typically ranking amongst the top 30, 50 employers. It depends on which ranking you're going in the world. There are some awards as well. We are very proud of -- sorry, the global awards are actually on the left-hand side, so where we get recognition for being a fantastic global employer. And we have a lot of local awards where we either contribute in the competition or we get local feedback. And we didn't list all of them, just a few. But there's one award I'm very proud of, and I want to share that one here. It's a top employer award. So my team just went yesterday to Amsterdam because Puma has been awarded as 1 of 19 companies only who have received a global top employer award. So what is top employer? Top employer is something where you need to do something because you have to share your human resources practices with top employer. So to answer your 315 questions, you need to upload all information, auditors is coming on site. This was -- by the way, the auditor was asking me the question from earlier, and they check everything, whether what you are pretending you're doing is actually right, and you need to provide evidence. So the great thing is we have achieved that award in 24 countries. Those 24 countries are representing 87% of our Puma population globally. And the great thing is, typically, you get that top employer award globally if you have achieved minimum 65% of their standards, and the Puma average is 90%. So those markets not listed here can tell you they have the similar practices, they've just not been audited. So I can assure you that we have a high standard in our HR practice around the world. And there is no other company in our industry participating in that. There's just one company who is participating in 2 markets, Colombia and Brazil, in that competition. But you can Google all other competitors, none of our competitors is attending that and is auditing the company accordingly. So another thing we're very proud of, Puma has been certified last year as 1 of 2 employers to be an equal-pay employer here in Germany. We're also certified in Sweden and in the Middle East. And I can share with you, we go public next week with that. We just got a recertification here in Germany. And I can tell you there are more countries to follow. It's going to become a legislation anyway in 2026 onwards here across the EU. But I can tell you, we're already ahead of the game. And I'm sure, in a very short while, we're able to complete with the other European countries. And the reason why we do that or that's happening is we established a pay metrics where we only do merit increase according to two factors: one is how you compensate that person against to a peer group; and the second thing, the performance of the employee. And other criteria like gender, age and co, we don't consider at all. And that's a practice we're having consistently over the past years and because we found out that we are an equal-pay employer by coincident actually. We just did a check and found out and we made it from scratch. So it was also quite important that we pay living wage. I'm not saying minimum wage. We pay a living wage across the world to all people in Puma. That's one of our objectives. These are the objectives we're having, and we filled them already last year. And also this year, we are 100% fair pay or living wage pay employer around the world. So what's happening around us? You all know, there are some demographic developments happening. We knew this since years already, so it's now hitting hard the European market, U.S. market; on the long run, also Chinese market. So we're going to have a shortage labor, and we can feel it already. So what is the way we can approach that is simply immigration of skilled labor. And that's something we're doing already since years. I think we're in a good shape when it comes to this. One thing is, of course, hiring foreigners. The other thing is making them stay longer. The second thing is efficiency through automation, digitalization and AI. And I can tell you, since 2018, we are digital in HR and P&O. So I do my job 90% just with my mobile phone. And also, our people can do that, can nearly do every single thing in P&O with their mobile phone if they want. But we're also personally reachable. So if they want to come to us, they can still speak to us. So we're still available for them. So making people return quicker, back from the parental leave, is only possible if you provide a very flexible environment, primarily for mothers, which are mainly affected here. We are flexible. We have flexible hours. We support them on the childcare side. You are able to bring even your kid to work. We have parent-child offices here, people can bring -- and we have an ideal environment actually when people come back. And we try to help them as much as we can to reduce the time of their parental leave to an absolute minimum. So then, yes, whether we like it or not, we probably need to work a bit longer and we need to prepare people for that. We also need to offer part-time solutions for people at a certain age who say, "I may not want to work full time anymore but maybe part-time. I maybe want to make some additional money then to my pension." And last, but not least, we all take this seriously, we think about that and we do it already, is offshoring roles and offer remote working solutions. So the second macro trend, as I was mentioning, is automation and AI. So we're right in between. There are a lot of software solution now coming, which make that topic very serious. I just want to ensure you that we work on the topic and we're preparing our organization here because that's a trend which will be affecting us quite significantly. We are preparing our people with upskilling and reskilling opportunities in the organization. And that's a huge change process, but we're definitely working on this topic. So our way moving forward, I just want to share our 4 key priorities in P&O. Number one, is talent management. I can show you my slides for the last 10 years. Number one was always talent management. And if there's one thing we are really good at in Puma, then it's talent management. We take talent management very serious. We evaluate our talent. We have talent conferences. And we share our talents to the very top, to Arne and the team as well. And what's more important than having a system behind is talking talents and also taking actions, giving people an opportunity to grow. And that's very important. Retention management is a key thing. Retention is the new hiring strategy, making people stay longer. And I'm always saying the first day with Puma needs to be double and as good as the last day with the previous. And we're expediting the onboarding process. And of course, the last day with Puma needs to be double as good with the first day with the new employer. Why? Because retention management is also keeping track on your alumni, in particular, people just moving on to a new employer. And don't be too proud to hire them back. And what we do to people, we give them a promise actually to hire them back in a certain time frame, if they change their mind. And of course, if people change employers, it's quite important that you keep track on them. And maybe in a short while, actually, they change their mind and you get them back. So retention is all about making people happy in an organization, offering them the best work environment, and that's what I think we do quite well here. Employer branding, again, not just to the outside, employer branding to the inside. We need to tell our people as well how great we are as an employer. It's sometimes difficult when Puma is their first employer. Because they haven't seen any other companies before, they often find out, when they move somewhere else, that the new employer is quite different than Puma. And again, it's quite important that we offer them the hand and say there's no problem to come back. And last, but not least, upskilling. I mentioned that there is a lot of technology hitting us in the next month and years, and you need to prepare the organization. I think we are well prepared because we have a very young crowd, which is quite open to the new technology. However, we need to prepare our organization on how to use these new tools, these new features in the organization. So in short, I think we have highly engaged people here. We have fantastic P&O practices around the world; consistency. On the diversity side, I think we are on the right track. We're looking actually rather good here. So I think we are rather well prepared actually for whatever is coming next for us. So before I leave the stage, I need to make an announcement that after my presentation, you have a little break, 30 minutes break. And I was also asked to tell you that behind the curtain -- there's not a reason why we put a curtain that you don't look behind, you should look behind it because you'll see our wonderful archive there and some [ seating ] opportunities. So if you grab a coffee, just spend some time because you see some very fantastic product we have done in the past. There's a little archive we put in there. So please take the time. And the last word, I don't want to -- it's not going to be me, I just want to give the last word to our people to tell them how great we are as an employer. Thank you. [Break]

So Max, what do you think do the guys have enough energy for the next lap?

I think they all went to the bathroom. It looks like they have coffee. They're excited.

I think a lot of -- is it your turn or my turn, by the way?

I don't know. We saved the best for last, so it doesn't really matter.

I'm not sure. But you know what, what I feel...

Didn't you just hear them laugh? I've been waiting the entire day.

I hear them laugh. They are nice guys. I can tell you that. You have no French accent. You're wrong here.

We both don't have French accents, but we both don't sound too great.

That's true. Let's get it started.

Okay. Let's go.

Guys, before I start onstage, I have to give you a little secret. So I had great conversations last night, I have to say, especially with some hardcore Frankfurt -- Eintracht Frankfurt fans like [ Jurgen ] is. We will go to the stadium together, I promise you. But I forgot to eat. I went home, opened the fridge and took a sausage, and I was done. And then I closed the door. And I thought we are so blessed. If I have to go back tomorrow and presenting things about sausages, it would be a nightmare. Also for you guys, I think you're going to kill 48 hours presenting sausages and things like this. We are blasting this industry, I can promise. So now I need a clicker. Do I have the clicker? The clicker is here. [Presentation]

But seriously, my name is Matthias. I'm heading up the BU Teamsport, driving football. And I want to have kind of a sound check from you. So who is, let's say, at least a football fan? That many? Whoa, makes my life easier. I thought you're going to kill me. And who is playing actively football or has played actively football? Still on it? Wow, cool. So join me. I would love to invite you all, let's say, for the next minutes for what I think is an exciting journey about something which is deeply rooted in our DNA. So it's a fantastic sport. It's a universal language, I would say, a bit of a religion as well. So 4 billion people are watching football and following, are fans, in more than 200 countries. That's really amazing. I think before we, let's say, dive in the strategy and how we look at it and look at our results, it might make sense, let's say, to look at the pitch from a helicopter view and looking onto the field where we're playing on. So football today is highly competitive. It's really about physical and mental strength. It's about agility. It's about power. It's possession. And it's about more and more analytics, let's say, consumer-centric on pitch. I've been at Man City a couple of weeks ago, and I can tell you, it's my employee. So they have a room with 300 seats, I don't know, doing analytics before they play a game to whomever. All the players know exactly what is the open end, how does he react. They have it on their iPads. They have analytics, figures. Unbelievable. They have drones flying over the training camp and measuring every single movement and every single run-passes and so on and so on. It's totally changed. And then if you have this kind of a mastermind, like Pep Guardiola, and I think he's a great guy and he has won 5 trophies in a row, then you're really blessed. And we are a part of the journey, and I can't wait for more. But today's football competitiveness, let's say, is far beyond the 90 minutes on pitch. So what we can see out there is that big investments are made to turn more in that kind of entertainment clubs, right, and also, let's say, turning into more international groups like the City Football Group. AC Milan, for example, they will build a new stadium within the next years; super big, cinemas, shops, restaurants, everything; same thing to Man City. So if you look at the pre- and post-season tours, towards China, U.S., Japan, wherever, you can clearly see that they're underlining the ambition to internationalize the business. They also have been to offices in New York, Shanghai, in Dubai and elsewhere. Borussia Dortmund, for example, and it's close to my heart, this club, I signed it, is opening their offices in New York within the next 14 days. Football is a key focus for global sports brands. I would say all the brands, many brands, want to be part of a sport that still has the biggest viewership on Earth. Followerships and engagement rates across all social channels are really massive, I have to say. It's unbelievable. Everybody want to have kind of a piece of it and want to have a part of it. So if you want to be considered as a true performance brand, you have to reach significance like we do since decades, I have to say. But there is a hunt outside. And this hunt, to get the best players, clubs and federations for each brand, is really an incredible battle. So I want to summarize it a bit because honestly, sometimes I'm receiving these questions, "You know, brand A or B, they're doing this." Like, you know what, if I drop some bananas, I don't catch bananas. I'm going for the fresh apples. This way, I want to win. This way, I'm doing my share with the Unisports, with elite partners, with the Pro:Direct Sports and SoccerPro.coms. This is very important. So there is truly no free lunch outside, nothing. There's not one free inch. And there's no success by accident, I have to say. So what we have to do, we have to fight for any single millimeter. If you want to be as relevant as we are, then you really have to be somehow obsessed in this kind of a business to reach what we reached. And I have to say, the journey over the last years, and especially the last year, has been amazing. I want to share with you, check it out at the video. [Presentation]

Of course, I mean, this is a takeaway from this beautiful video, these strong numbers behind me on the screen. I mean multiplying shares and doubling sales is, of course, super great. But on top of that one, it's worth to mention that, I think lots of the best and outstanding players today are with Puma. Many really iconic clubs today are with Puma. So we are really consistent. So we have progressive product innovation season by season. And '23 has been the best year ever for Puma Teamsport, and I promise you it won't stop there. As a real challenger brand, we stay hungry even if the achievements are already, let's say, remarkable. I mean listening to Pep yesterday, same, same. Success is nice, but it makes you ready for the next one. So we do have in mind that we're really actually scratching surfaces. We'll drive Puma football definitely to the next level, and we will continuously accelerate, built on a very focused vision and strategy. That is very important. And this is based on 3 important pillars for me, and it's about clarity, simplicity and execution excellence. Having said this, let's have a look at our strategy. I will hurry up a bit because you learned a lot over the last 24 hours about football. But there are some things, I think that are worthy to share. Here we go. So first of all, we do have a very clear vision, and I want to read this one for you. Catalyst, this represents Puma football's active role to bring positive changes within football, beyond age, next-gen references, so to push the game forward, both on and off the field. We aim to be the most authentic, socially aware and culturally relevant brand in football. If it comes to the strategy, I think it's very important that you find your game, to define your strategy to attack and challenge the status quo. In a deeper sense, we have a clearly aligned strategy based on so-called business drivers, which you can see easily behind me. Business drivers are connected to commercial targets. They are boiled down into the organization and translated into game blends per market. Everybody within Puma knows precisely what he has to do when it comes to team sport. We are the fastest-growing football footwear brand, and we're getting more and more shelf space. This is amazing. So we will keep this momentum. And we're gaining market shares, I promise you. The way how we ramp up our license business led us to an outperforming double-digit growth. We fully focus on the club DNA. This is a very important point, by the way. So we don't do template business. We don't do copy and paste. Back in the days, there have been great ideas. We can do all the same, same. And then people forgot to put the crest on the breast, on the heart, right? It's going to kill you. I asked [ Jurgen ], the Frankfurt fan, if you put away the crest, they're going to kill you. And now we have all ducks in a row. We really ramped it up in the right way. And what we as well know, that there's kind of a bit of a blind spot when it comes to team sport. I personally believe there are triple of millions of potential, triple millions of potential, if you discover the full ecosystem. We're on the way. Women's community in football is rapidly growing. I mean, remember, the Euros, U.K., so Wembley has been sold out at the final. Looking backwards last year to the World Cup Down Under, all stadiums sold out. So the women's football is getting bigger and even more relevant, especially when it comes to the culture side of the business. The last, let's say, pillar for me, and this is somehow an important one as well because no one has it on the radar, is to become a leading match ball partner. For me, there is nearly no way to show better high-end performance and maximized visibility via the ball. I will come to this, back to this one later because it's a super interesting one. So it comes to, let's say, the footwear, I don't want to tick every box, but just briefly get along. So it's very important for us that we build franchises, is what you have learned. And therefore, let's say, we are trying to really get the best insights from the players. And the most important thing on that one is that you create kind of an emotional connect. And this emotional connect is the red thread across seasons. And then season by season, you evolve your technique and your innovation and you're getting better and better and better. That's super, super important. Secondly, it's about consumer-centric. My friend over there, Dom, is heading it up. So he's traveling with his team around the globe tons of time, out in the markets with young players, with professionals, with amateurs, to get an understanding about what is really the need. And this is so important that you listen and that you then, out of this, create something that really matters to the consumers. Thirdly, best kids products. I mean, I've been impressed, so many people obviously played football or at least are fans. You can remember your first brand that you had as a kid, right, most people can; what has been the first football shoe you had in your hands. And therefore, it's super important that we connect with these guys. Of course, we have to deliver the right performance product, the right fit, at the right price points. On this one, we are as well very heavily on. And then last, but not least, be the best partners to the customers. The customers, they are driving the performance. And we can connect also, let's say, to their communities. This is very important. And we're doing bespoke products for these guys because we know what they need, and we learn from them and we have discussions on an eye level. Building franchises is absolutely crucial. So and consistency on that one is, of course, super important. I mentioned it a couple of times now. So players need a clear benefit. A clear benefit, I'm giving you an example. Ultra is a synonym for speed, lightweight, for the fastest players. The emotional benefit behind Ultra is a silo is I want to feel dangerous. This is important to the player. And the player type is obsessed to being the first, relentless and super competitive. The boot definition itself, it's my weapon. It's not fast. It's faster, it's aggressive, it's just explosive. And this we are doing for each silo. So we have these kinds emotional connect and every player understands what's in for me and what's -- why I want to be like this. To be clear, again, we just started in 2018 with the first franchise, the FUTURE boot. What we achieved in such a short time frame is for me really impressive. It's outstanding. Having in mind that the speed segment is commercially the biggest one, by far the biggest one. We just launched in 2020 the Ultra. So you can get an idea if you really let get that one nice down what it means to our business as well. And knowing this, it's even more important to understand that this market share growth that we have is based, let's say, only on one boot, the FUTURE. You imagine, we come in full swing with Ultra on the speed side. We come in full swing with the KING, what will happen when it comes to the shares? And there's a very important chart now behind me in my presentation. So the top 10 -- the top 10 market shares on the -- Sorry. On the top 10 market shares, we have 3 boots that are from PUMA. But even more important, if you look at the pace, how we are growing, number one fastest, PUMA; number two, PUMA; number four, PUMA. So a success like this is built on bits and pieces. And of course, you have to have the right player strategy behind. So to deeply connect to the football playing audience, you need outstanding players, you need really characters, fashionable guys, true performers on and off pitch. I mean remember, Kingsley Coman yesterday, how he has been dressed. So they love it. [ And here on top connected to hero ] national teams, like Coman and Neymar, these guys are really ticking the box. So as we are continuously scouting, I have to say we are extremely happy to add always new players to our roster. And we are super happy, not allowed to speak officially about it, but we will get another star to our roaster, a great player from AC Milan, you will check it out within the next weeks. Given these outstanding players lineup, the share of voice has really shot up across the last season. Look at this across the 5 biggest leagues, we are actually around 20% in average, counting all PUMA players on pitch compared to other brands. A couple of years ago, honestly, it has been unthinkable. It's justified and it's justifying that we're really back in the race. [ Licensing team ] here is the second big pillar. The persona approach I spoke about already is so important. The fan of AC Milan is different from a fan of BBB, BBB is different to Man City. So therefore, it's so important that we really deliver, let's say, individual solutions that we do in [ a sense of persona ] and then doing the right stuff. And combined with this, we created business plans and these business plans are working out. We have with each club a very concrete idea how we want to develop the business. And with all these big clubs, we are in double-digit growth, we grown with every club bigger than 30% over the last years. At the same time, it's a commitment of the club, and we want to feel their willingness to really grow with us and to drive business forward. We are now in the position that we really can somehow select which clubs we can add to our portfolio because our portfolio is so strong. And I'm really happy 2 years -- 2 days ago that we announced RB Leipzig coming to us and now being with us. And also [ after Sampaoli ] is a great addition. Given the time frame today, I'll touch those boxes really just briefly, but I wanted to say when it comes to license, number one, all first partners are in double-digit growth. So it's really a proof that business plans are working. Number two, we don't any template business, no copy and paste. We stay unique. Number three, we have the lightest game shirt in the market, the lightest game shirt in the market. You can check it out. ULTRAWEAVE technology. On top, PUMA is pioneering and Anne-Laure talked to this one when it comes to secularity, sustainability as of Autumn/Winter '24, very well received by the clubs and the fans. Number four, culture and collabs, exploring the full universe of that one, and I will come back to this one, but just give me a second. So -- and then super important, fueling teamwork. This is so, so important that we trickle it down. We have triple million potential, nothing more to say to this one. Exploring the culture, I mean, look behind me with this beautiful shirts. We do it by using our performance power and our, let's say, our performance DNA, and we are creating spillover effects into style and fashion and vice versa. So this is how we drive football culture and we're connecting to sports and fueling trends. The shortcut, at least the commercial opportunities we have on that one are more or less endless, I have to say. So these shirts are really flying through the roof. If I could reorder what people want to have, [indiscernible] would be crazy. All these great initiatives are creating brand heat and desirability. And this is helping us, let's say, to really discover the full ecosystem when it comes to teamwork especially. And here we have to grow. But we are ready to go. We have a fully digitalized catalog. We have a real-time inventory management, all that stuff that you need. And nothing fits more to team where -- as clarity, simplicity and execution excellence. So we are ready to go on the one, and we will make a lot of money out of this. I promise you. Let's talk about women's football. First of all, we spent really tons of time and also a significant investment to understand the needs and to get all the insights about women, but a lot of people talk about it, but they don't really get it. So -- but now we know really the specific needs and performance, and we can offer to these ladies the best product and [ supporting ] the best fit, giving the innovations also, let's say, avoiding injuries and so on, and so on and so on with all insights that we have. So we put also a lot of efforts behind, let's say, ramp up the business for all the women's, getting shelf space, convincing also, let's say, wholesale partners, how important it is and that it drastically has changed over the last year -- years, sorry. So as on the men's side, we do have a great share of voice as well, and we are focused on the silo approach, and we have great performance here on and off pitch. More than 90% of our sponsored ladies are using the specific fit. This is a clear proof of our strategy, and we are a pioneer in this market. We have the products on all price points and all fits specifically for women's. And the level of women's football, as I said, I think, has drastically changed. I mean it's -- the stadiums are getting more and more full, and it's very attractive, and I strongly believe this is part of this universal sport. It's a fantastic opportunity for us. And last but not least, I spoke about the match balls. So I strongly believe that we will become; a, I would say, now we will become the leading match ball partner. Again, there's really no better way to show up high-end performance and getting visible around the globe. People underestimate this. There's one league ball, who is, let's say, reaching out to 1.4 billion households every week once or twice. There's nothing you have on your hands to create more visibility and convince people. For me, it's -- the balls business is a bit like a sleeping giant. We shake the giant already a bit, I have to say. So it took us already to 12 important competition such as LaLiga, Serie A and many more. So 4 additional match balls as of this year, so 16 in total. And the giant will wake up even more, I would say, with a partner #17. Unfortunately, I can't talk about this partner. It's a fantastic one, and I promise you it's a super, super big one. Nothing is more important at the end of the day then to keep momentum. So I strongly believe, and not only believe, I don't have, let's say, any single doubt about that PUMA Football will grow in the future. And of course, why we are growing, what is the reason for? So first of all, and we heard it a couple of times, nothing is more than the product itself. So we're doing extraordinary hard work on that one on innovation, on global sourcing by end and the entire design department. So we engineered the strongest lineup that this company has ever had in football. Whether we talk about footwear, apparel or equipment, for those of you who will join the showroom sessions right after, I can promise you fasten your seatbelt. You will see highly consumer-relevant product, you will see beautiful product, and you will be amazed about that one. PUMA is benchmark in customer relation. This is core to us because we are as we are. The bond of partnership with customers has never been better than today. And I want to give you a kind of a clue about it. Last -- or an impression. 3 weeks ago, we held our second Team Sports Summit in Man City. We did a short movie about that one. [Presentation]

It has been a fantastic event. I mean more than 50% of our turnover followed us to Man City, so customers from all over the world. We have Australia over there. South Africa has been there. [ P&A ] has been there. Lat Am has been there. It has been just a great, great venue. And I have to say, I mean, we get that much of a strong feedback to the product line that we are really amazed about. And of course, I believe that we will get some on top commitments when it comes to [ buying this budget ]. So it's also very important. I will show you might be this one here from Unisport. So he's saying the funnel is full of ammunition, full for growth and increase of market share. It's nice Pro:Direct from U.K. PUMA remains the French benchmark. PUMA strategy is spot on. I mean this is, of course, music to our ears because obviously, we're doing more things right than wrong. Built a super strong Online Footwear business and use the great collabs and limited edition drops to drive brand heat and the business will follow. Very nice. We are on it. Thirdly, while we will continue to grow it, we continue to invest wisely. I mean, as always in life, you have different options. You can, let's say, spend smart money or you can smart -- spent might be stupid money. So this is what we don't do. We have clear guardrails and we are scouting really assets, where we have the feeling, the brand heat is that strong that we have a kind of a payoff. So it's also justified by a future club share of more than -- or let's say, 30% when it comes to Champions League as of next year. Years ago, it goes unthinkable. I mean having more than 30% of the clubs at the Champions League is amazing, yes. And thank God that so many football fans are here. So -- and do know what I'm speaking about. So given the opportunities and the momentum we have, let's say, have a kind of a quick summary. I would say the speed silo is so important to us. We have a brand new Ultra Carbon Plate, great products. Tom over there, he created a machine. This is what customers are saying. Customers are not saying, you have a great boot. They're saying this is a machine. So we [ attack teamwear ], very important. Sky is, for me, the limit. Again, these are triple millions. And then, I mean, if you travel around the world, what a great journey we can do and can have, let's say, together, explore in the next year U.S. or [ P&A. ] So the Copa America '24, the Club World Cup in '25 and then the Men's World Cup in '26. And if we are lucky, we have might be the Women's World Cup in '27 as well. 4 amazing venues. So as I said, these are for me tons of opportunities, but there's one thing on top that I really want to share with you. And I think it's popped up a couple of times, the PUMA mentality. The PUMA mentality is unique. I think we are really brave to take challenges. And you see these sailing boats behind me, [ I've stoned ] this picture from a presentation of the CEO of Man City, from Ferran, because he -- and he can speak to this, I think, better than I do. But there's some takeaway he said, "Okay. If you want to change something, it doesn't make sense if you follow the boat. If you want to pass by and be faster, if you go their route, then you have the same wind, you have the same water underneath, you just won't change. So be brave, find your own course. Sometimes you fail, sometimes you win, that's life." So -- but this is about. And if you might be lose for -- or you get a goal, there's another analogy I want to share. He showed us a film, a small movie and that count as seconds. It was about 12 seconds. A goalie got a goal for whatever game, important game. You have 12 seconds to come over your frustration. You have 12 seconds to get the ball out of the net. You have 12 seconds to put it on the line and makes the game fast again. And this is our mentality, I would say. So don't run around, don't complain, don't explain why, find the solutions, be our child and show that you can change it and then you can drive the business. I think you get me. So -- and for us, and especially for me and my team and all of us, I would say, and hopefully, this is the kind of an experience you made during the last hours. This is not just a job. I think for us, it's more really a passion to be the challenger. And I hope that you really feel this with very fiber of your heart because this makes a difference. It's the emotional connection to consumers, customers -- this makes a difference, and it's important. I want to let's say, underline it. And this what I can, let's say, promise from the bottom of my heart, the PUMA keeps on hunting, this is how I put it here. And as we speak about football hunting is so important to be successful. And there's a very last trailer I want to show you from my friends from Man City because, as I said, it's super important, let's say, to stay on the hunt and to chase. [Presentation]

Yes. This is a perfect, let's say, translation into this beautiful chart that I'm sharing with you now because we're talking about the travel. We put our business into 4 phases, and we doubled the business within PUMA, [ I think it was within 2 years ]. And this is not, let's say, kind of an estimation. I know we're going to triple the business by '24. We're going to triple the business within PUMA team sport by '24. And this, let's say, is a very, very strong half-time result. Let's keep it and call it like this. I know it will come -- our -- what I know is this will qualify us for the next challenge and might be we double the travel. I don't know. I don't want to promise that much, but we are on the journey, we are on the way, and it's a great one. The very last slide, I have to share with you, as we stay hungry, we have really, let's say, a kind of a huge appetite for more. So look behind me. We are not allowed to talk about this one today, but you will discover everything very soon. We will have an iconic outstanding and super relevant additions to our portfolios. So these will be assets that we really make the diff in the future as well. So guys, it will drive consideration. It will drive visibility. It will drive top line sales, and we only to make the money. The future of PUMA and the future of PUMA Football is pride. Thank you very much. [Presentation]

Okay. We were running on time. Then Matthias started talking about sausages, and now we're late. Welcome to basketball. Look, I think the last time we got together for Capital Markets Day was 2018, and that's just when we started to think about, let's get back into basketball. So we wanted to take this time today to really show you why we got into basketball, how we're doing it. And then what are the products that we've created this amazing momentum becoming one of the fastest-growing brands in the sector and how this momentum will continue. In order to do this, and because this is the last presentation, I wanted to change it a little bit, and I wanted to think about it more as a case study, right? We're set up as a classroom, which is great. So all of you who are sitting in the front row, good job. Back row, always room to improve, but that's okay. So in order to do the case study, we need to set the scene a little bit. And for that, you got to rewind the clock and think about 2018 for us. And we're sitting there in 2018 and saying, okay, we're noticing a trend that sport culture is diluting this very classic narrative of performance marketing, right? So it's not just about is the shoe the lightest, it's the fastest. It's not really why people are starting to buy stuff more and more and even the kind of purchase funnel, the decision-making process, started to become a lot more about the fashion angle, the gaming angle, the angle of art, music and so on and so forth, really the culture around this. And we said, how can PUMA leading with our products, be part of that narrative? How can we be part of that cross-section? And we started looking at the sports that really operated right at that intersection in that cross section. And we landed on one thing. It became clear that basketball is out of all the sports, the one that is best suited to live at that cross-section of sports and culture. Because if you think about it, basketball today, while performance-driven really is the game that connects the idea, fashion of art of business of community of gaming. The consumer today learn so much more through basketball than just the performance thing. The players that are the voices of basketball our ambassadors of the performance side, sure, but also our ambassadors in the world of fashion, of art, of music, community and so on and so forth. You have to understand in a lot of countries, basketball is an intercity game. A lot of the kids that are connected to basketball only learn about these areas of fashion art, the ideas of business of music of gaming through basketball. There's nothing else. That's the outlet. That's really the archway into all of this. And we said, "Okay, if that's really the case, then that's the support we have to get into." But listen, only because they rolled out the tallest guy, they could find the PUMA is telling you this, don't believe me. So let's dive a little bit into this basketball culture truly exists. You can see it at all levels. I want to show you a couple of examples. I think the most classic way is that basketball out of any of the sport has this true connection. It's emotional connection from the fan to the player. We were recently at a college, so this is students 17 to 21, both the athlete and the students. And look at the interaction. [Presentation]

Okay. Now 2 things. One, if you're wondering if Arne will do this with you later. Yes, absolutely. Okay. Two, you see the connection there, right? These are teenagers. And they want -- the fans want to be the players, the players want to be the fans. They want to feel that connection. And you can see that at all levels of basketball, and it's truly something unique to the sport. Now fine, you might be sitting there and saying, "Well, Max, okay. I've seen this in football. I've seen this in Formula 1. I've even seen this in handball and so on and so forth. And you're right. Sports and arenas were really true fan bases and communities coming together, you see this interaction. But I would still argue that from an emotional standpoint, basketball is really at another level. But fine, I'll take the argument. But if you widen the scope to the community piece or the culture piece of this, you can see this through all levels of basketball. Listen, a lot of people in New York. They go see the Knicks and the Nets play. But most of the time, they don't go see for the basketball. They want to see all the culture around it. And you see some weird stuff there. But people go for the entertainment. On the music side, that's [ Quavo ], Grammy Award-winning music artists. This dude is filming a music video in the middle of an NBA game. This is not some production. He bought 4 courtside seat and brought a camera guy. This is a normal thing in basketball. The connection between culture and basketball is stronger than ever. If you like pop culture, you know and if you know the case study, you know Larry and Jerry wrote that scene and they use the Lakers and check for a specific reason because you know the demographic of the show expanded pretty widely after they did this. And yes, if you're watching this video, that is someone getting his hair cut in the middle of a basketball game around the courtside because the barbershop community idea within the community of basketball is great, and you can see that. So point is, this is unique to basketball and something that you only find in this sport. It continues from there though because you see it on the player level as well. Here's Kyle Kuzma. Kyle is an all-star NBA player for the Washington Wizards but he is also a fashion model. He works and he walks in fashion shows around the world. And he is also an investor in 2 vineyards and probably knows more about wine than all of us combined in this room. And you've never know that. But the kid that follows him gets exposed to these worlds through the lens of basketball. And we said, if we can somehow connect to a product and be a brand that stands for that connection in basketball, it's a white space that we can take advantage of and maybe have a chance at winning. That also led us to the question is, do we have a right to be in the sport? Is there an authenticity? And the answer is absolutely yes, because of this culture piece. You heard it many times already. This guy literally invented basketball culture. Before he showed up in the 70s, basketball was clean and kind of boring. He showed up in fur coats and purple Rolls-Royce and said, "The attitude that I can have on the court, I can bring off the court." And by the way, I can wear the same shoes doing it. Because he's doing this, we have this today, our players could not express themselves, work in the fields that they do, have the expansive idea of culture if it wasn't for what Clyde and PUMA started back in the '70s. Probably one of my favorite slides, GQ Cover 1974, almost 50 years later with Melo. This couldn't happen if it wasn't for Clyde and if it wasn't for PUMA. So we absolutely have the right to be in this space and be the connector between the performance and the culture through the lens of basketball. When we figured this out, we also said, let's figure out who's buying this basketball stuff. And we realized that from a consumer subset perspective, it also matches this idea that basketball is the sport of culture. Now from a consumer perspective, there's the traditional basketball consumer. We call them the high school hero, a little bit younger, has a dream of playing in the NBA, loves basketball, everything about them is basketball. His friends play. He's on the varsity team and so on and so forth. But then on the peripheries, we also have other consumers. On one hand, we have an authentic -- some what we call an authentic athlete, a little bit older. Someone who's understood that the dream of playing in the NBA has probably passed but he wants to be entertained. He has a favorite team, he has a favorite player, and he wants to be, again, entertained from the culture of the sport to get to that purchasing decision. And then on the other side, you have someone called the court culturalist. He can't tell you a thing about basketball, but is really into the fashion, the latest drops, lines up to get the latest select drops and so on and so forth. And we said if we have a chance, everything we do has to speak to at least 2 of these consumers at the same time because the worst thing we could do is just talk to the middle one. So we said, okay, there's a reason that we can get into the sport, we have authenticity. There's consumers that want a story that currently doesn't exist. And we've kind of proven to ourselves that basketball is part of that culture. So we were sitting there, we're saying, wow, what an amazing sport. And then we kind of looked at the competition and the narrative they were putting out and we said, "It's a bit boring." Okay? Because you're missing a lot of this culture first storytelling element. This is great. This is amazing basketball. It's fantastic. This has worked for a long time, but you're missing a large part of the basketball market. So we said, "Okay, let's do it." First thing we needed, we needed a vision. We said we wanted to be the next-generation brand of basketball. Next generation in terms of design, next generation in terms of the players we invest in and next generation in terms of the partners and the stories that we tell and how we do it. Speaking about how we do it, we needed rules. We had 3 simple ones. First, all stories, culture first, meaning that we don't go out there and say, our shoes are the best because of the performance. We've been building great shoes here for 75 years. We don't have to convince people of that, but we do need to convince them that we're cool and basketball is the coolest sport. Two, we've got a ground of product and performance. As cool as their storytelling could be, we got to make sure we can actually play in our product and have the latest technology. Well, you saw for the last day. We got great technology. So we had it already. Wonderful. And then three, in order to stand a chance we had to be disruptive. We had to take first-mover opportunities, and we had to take some risks. And I think we did that and did it quite well. Now in terms of a rule, we also needed a simple framework from a business perspective. This is also simple and not surprising. We needed to win in the U.S. and we said if we win the U.S., we'd win the world because being accepted into the American basketball culture is the biggest thumbs-up that you can get and the moment that happens, it trickles into all the other regions where basketball is prevalent. This is a little bit from a sales perspective. Yes, you want to do sales in the U.S. to get momentum, but it's also the acceptance is just within the fabric of the basketball culture. The NBA is the global platform for basketball and it's in America. And if you win there, you win everywhere. So we put all of this together and let's take a look how it turned out. [Presentation]

You can applaud, don't be shy. Good. Got you to applaud for a video. That's great. Okay. Look, if you think about what you saw in this video, it's really about culture. It's about the voices of it, and then about the creativity, and then ultimately and most importantly, about the product. If you think about the culture aspect, the partners -- just a snapshot here and recent memory of the partners that we've brought in to tell the basketball story, again, not starting from the performance side but from the culture side: music, art, fashion, gaming, pop culture, you name it. At the end, it's basketball. It's just a different way to tell the consumer about the sport. When you take a snapshot of our voices across the NBA and WNBA, the thing that the players have in common is that they're all more than a basketball player. They all have the affinity and the motivation to tell more of this culture. First story, they're involved in much more than just basketball. And we require them to do so. And we use them in that as well. Then when it comes to the creativity, this is our first basketball campaign. This doesn't look like anything, especially back in 2018, it didn't look like anything that was out there. It was younger. It was different. It gave the brand a new voice, a new vibe that attracted a younger consumer, and they totally shook up basketball. And if you think about where we started here and what we put out now, it started in that same trend, and it's continuing that same way. The best example is take out your phones, open up our Instagram, open up a competitor's Instagram in the same space. Listen, not right or wrong. At the end of the day, we're telling a basketball story. We're just doing it differently. They own this space quite well, and they should own it. We're opening up an entire new space the way that we're giving the storytelling approach. Lastly, when it comes to product, the most important piece. When it comes to that, we think about it in 3 areas: culture, performance and signature. And if you think about the product in recent memory that we released, you can see that idea of pushing the boundary of something that maybe looks like a basketball shoe but kind of blurs the line. You might not wear it on a court, it's fashionable, you can wear it off a court, and so on and so forth. When it comes to signature, obviously, you're well aware. We've had good success with Melo. This was the first one, and just in 2 years now, we're even on the third edition here and getting awards that we couldn't even think of from Complex Magazine saying, that is just one of the best shoes in '23, it doesn't even matter if it's basketball or lifestyle, so be it. We're pushing the boundaries with signature with Scoot Henderson, the first true rookie to get a signature shoe the moment he steps on court for his first game, and then we're getting great accolades for that as well, even pushing a new price point at $100, something that's in signature had never seen before. And then even from a storytelling perspective, taking a rookie, not an all-star, bringing them to the all-star game and doing something great, like this activation with Cheetos. And I'm telling you, if you ever wanted to figure out what it was like to go inside a bag of chips, we could have done that for you just 2 weeks ago. And the success we've had here is great, and we've kind of took over the talent and the narrative. And again, it's a culture-first marketing approach. And then even on the women's side. We said let's get into women's basketball and we're able to partner with the best female player on the planet, which is one of the best basketball players. And her signature line has been doing very well, and it's taught us a lot how to make performance products for the female consumer as well in basketball. So a great expansion on the signature side. As you heard on the performance side, it's simple. We have one the best foams in the industry with NITRO. We launched the All-Pro NITRO less than 6 months ago. We already have world MVPs, league MVPs, winning titles across the board, and we've even jumped over Shaquille O'Neal with the shoe. That's a pretty good accomplishment. We're continuing this narrative as well, introducing the All-Pro NITRO Elite. We're even adding carbon plating, removable mid sole, ultra weave upper, and so on and so forth. Point is we're expanding the performance segment. Pause here for a second, that logo, it's called NEXPRO. 5 years in basketball, we haven't even touched the grassroots use space in the U.S. yet. Starting this March, we have our own new circuit, 600 teams, almost 10,000 players, all representing NITRO. It's going to be a great success. You put that into our full performance lineup, we're now offering performance products from pinnacle all the way to the entry price point. And in just 5 years, that expansion, absolutely fantastic. Lastly, on the culture side, there's this whole area of this kind of crossover on and off court. And a lot of our players have a lot of personality on the court, but even more personality off the court. For example, our friend, Melo, very flashy on the court. But off the court as well, I'm sure a lot of you can compare, you want to style your outfits to your supercars every day of the week as he does. And we said, why not try to capture some of that vibe, some of that momentum through a product? This May, we're launching something called the LaFrance, his off-court lifestyle line. I think from a trend perspective, quite good, in that skate trend, disruptive silhouette and something that can expand our basketball offering quite well. When you summarize all of this, I think one of the reasons why we've had success is if we've kept this idea of wanting to be the first mover. We are the brand of firsts. We are the brand investing in the next generation with top draft picks. We're the first brand to take advantage of the NIL opportunities in the U.S. We were the first brand to actually do one of these culture shoes with J. Cole and Dreamer. Don't forget, we are the first ones to actually have success in that. We are the first brand to invest in this cool counterculture Pro-Am tournament. We're the first brand to give a rookie a true signature shoe. First brand to bring back the modern women's signature shoe. The first brand to do a high-fashion performance on court shoe with Ballmer. And now, we'll be the first to really bring back this idea of off-court signature. And I think we have to continue this. Why? We followed our rules. Culture storytelling first, grounded in performance and be the unexpected first movers. Now remember this framework? We've got to win in the U.S. to win the world. Have we done that? We closed year 5 in the U.S. If you look how we're doing, we're in the top 3 in signature brands, and we're also on the top 3 in performance brand. Some months, we even scratched #2. We said if we win in the U.S., we will win in the rest of the world. If you look at the business development starting 2018, and up here, you can see the international expansion, the more success that we've had in the U.S., the bigger the international opportunity came. We really started this expansion right towards the end of COVID, and already, the cat is getting more and more visible across the regions in many clubs, including the Euro league. And if we have this meeting a little later, we could actually reveal another club that we're signing. So more and more popular on the international stage as well. What has the effect been for Puma? One, newness for the trade. I think something that we heard is that basketball, not only from a creativity, it was getting stale, but also from the products that were out there, the design, the colors, the stories, and we're providing that. We're still providing that, sometimes on a monthly basis. Two, we have learned that we are capturing a completely younger consumer for Puma. If you look at the way that we tell our story, the way that we do our creative, the way that our graphic looks, the result is that when you look at who's buying it, it is much younger than the demographic of all the other stuff that we had previously. And then two, the halo effect and the brand reach has been terrific, better than we could even imagine because we love when Drake's son wears our shoes because another brand pays them a lot of money, and we don't mind that. So from an idea of lifting the logo and seeing Puma more and more, basketball has been better than we could even expect. If you break this down, you saw the signature -- you saw this pyramid already. It starts with signature, 5 years, top 3 signature brand. Performance, 5 years, top 3 performance brand. But that's only 10% of the market, and within that 10%, if it comes to the U.S., we're only about half of the doors that can carry basketball. The thing is that, the main part of the basketball market is actually the lifestyle, off-court, almost 90%, and we haven't even started that yet. We're just taking the first steps because we've built this very important foundation. So for us, our focus is obviously expanding signature and performance. We have great momentum, and then taking the first steps on the culture side. We're going to continue to be the challenger brand, and you can see the momentum that we've built. There are so many ways that this will continue. And if you don't agree with me, I'll argue in our showroom. So that's it from basketball. We'd love to actually have brought over a player, but they're all in season. So we gave them the prompt that we're talking to our investment community and they should send us some videos, and I will leave you with that. So thank you. [Presentation]

Now obviously, it's never easy to come on stage after Max. I mean, I don't need to explain why. As we promised to you yesterday, we will translate the presentations into the physical product and show you the showrooms which we have on site. So the idea is that we split up in 4 different groups. Based on your color batches, you will recognize in which group you are in. That is going up to last about 1.5 hours. Our people will wait for you outside of the [indiscernible] Hall. I hope you would understand that in view of the Spring/Summer '25 product, which hardly anybody has seen so far, we'll ask you to cover your phones and the cameras with certain stickers, which will be handed out by the teams in front of the [indiscernible] Hall. For all the others following us online, we'll have a break for about 1.5 hours, and then come back for a Q&A session. Thank you. Enjoy. [Break]

Thank you very much. I hope you all enjoyed the showroom tours. Certainly, we are, yes, a little bit late for now. So we have approximately 20 minutes, I think, for the Q&A now. We'll be traveling the world in the next few weeks anyhow and meeting many of you for meetings. And I'm more than happy to discuss any follow-up questions which you might have. I'm happy that we have a better gender diversity today on stage than we had yesterday. So maybe just to start the Q&A. I mean, Zuzanna has left, the rule breaker, sneaking in more questions, has left. But I will still remind you to stick to 1 question, please. So who wants to take the first question? Andreas? And then you can -- David, hand it over straight to you.

I would have a question on football or soccer. So I think, we heard that you speak about half time. So it sounds like you want to double the business. And would you say, the future growth in football depends on signing more players teams? Or is the growth not so much depending on those players or teams as in the past?

Yes. I mean I think what we do see is a certain correlation on that. I mean, we need, let's say, to be relevant in every single league because, let's say, that's how the fan is looking up to what kind of shoe is my idol wearing. I think when you look at our roster of players, we feel very strong, let's say, that on the top Tier 1s, we have some a very significant one. So I don't think that, say, we need more on this one. But with the increased market shares, which we have, we are continuing to sign players for sure.

That question would be around white spots because you signed many players and teams where there are white spots going forward to double the business again. This would be then the follow-up question.

Yes. So it was specifically on the player side now.

Players, teams?

Yes. I mean again, I mean, with our ambition, which we have, and Matthias showed it. I mean, there are some exciting signings coming up on the national team side, on the club side, on the ball side. So for sure, you can expect a strengthened roster, which is further providing substance to our growth plans.

Okay. A question maybe on the sourcing side. Over the last couple of years, we've seen quite some disruptions. A, what kind of learnings have you, as Puma, drawn from those changes and supply chain issues? And how do you see the likelihood that maybe this near-shoring might become a bigger topic? I noticed that, like in Northern Africa, you have no sourcing, whereas some other companies in the apparel segment are obviously quite active there. I guess there are some advantages to it. But how -- is that put all in stone? Or how much do you try to be more flexible or change a little bit here? And one add-on question, AI, is that a topic for you on the sourcing side?

Okay. In terms of sourcing mapping, starting with Africa, we are in Africa, actually, for local -- for local in South Africa, but that's not a big business. We are not looking at Africa now because you need to put in perspective, when you move to a country, you need the entire supply chain to move in the country. So it's not helpful to move a footwear factory in the country if you cannot source sole and uppers at the same time. Same for apparel. Whoever has gone to Ethiopia, and we've been following that a lot because a lot of the brand and the partners went to Ethopia, it was not successful. So it's not something -- no. So it's not something that we've been looking at, at the moment. Disruption, I think the recipe for us and why we've been successful in disruptions is -- managing the disruption, is because we are living in the countries, and we are working with the vendor on a daily basis. And as much as we would like AI to take over or take to take over, I can tell you, because I'm in this business for 30 years, relationship, being next to our partners on a daily basis changes everything. During COVID, none of us flew back to our home country. We all stayed. We had people in sourcing in Vietnam that were locked down in camps on quarantine and they were still working from there. And that is something that really makes a huge difference when you have to deal with problem because the respect and the attention you get from your partner is massive. We even had, in Team Sports, some factory where the people in Vietnam were living in the factory for 3 weeks just to manufacture product for Puma. So this is how we handle disruption today. This is really the particular connection and relationship we've built over the years, having 24 vendors that is core to us, to whom we talk every day. I visit them every month. I'm in China, Indonesia, Vietnam, Cambodia, Bangladesh constantly. When you are on the ground, you manage disruption. This is the only option. And the last question was AI?

Maybe if I can add on. Also with our strategic partners, we are pursuing a multi-country of origin strategy, yes. So let's say that in terms of we need to shift capacities for one or the other reasons -- from one to the other one, it makes it easier because it's for the same company but a different site.

So we have the best sourcing team of the industry, trust me. Yes. This has been the right recipe for many years. So there's no reason to change it now.

Richard?

Yes. Just a follow-up question on sourcing. I think Shirley yesterday talked about immediate orders going from something like 8% of the business in China up to maybe half the business over the next few years. So I just wonder what are the challenges of trying to go from 8% to half of your business as immediate orders, I think she called it? So short [indiscernible].

Richard [indiscernible], you said 8%? 8% of what?

No. The local for local. So China is 32% of today's Puma sourcing. Out of 32%, 8% is for China for China, and the remaining is export business.

So 25% China for export. And then the rest, but basically 80% of China's demand is covered by local production.

And I thought her point was that she was trying to significantly increase -- reduce the lead times of a local for local product?

More than 80% for local for local.

The lead time.

So lead time in China, yes, of course, we've been working on lead time together with Shirley. So we have amazing partners and building shorter lead times goes back to having materials ready. If you don't have materials ready, you cannot do anything. Our partners in China have vertical integration, meaning that they produce materials so they can produce products. In the apparel business, we work with the best-in-class in the world, and they are capable to do replenishment for Puma China in 10 days to 15 days for Puma China. Footwear, we built a similar capacity with our vendors in China. We are capable to replenish for Shirley's team in a matter of 6 weeks to 2 months in terms of footwear.

Okay. So it's not really a big challenge. It's actually pretty straightforward.

And we have developed a product team that is based in the different facilities, either close to the apparel team in Shanghai or close to the footwear team in China.

Okay. Who wants to ask next? [ Philip ] from Warburg. Philip, could you do me a favor, please, and hold the mic nearer and speak louder.

Well, typically, not my problem that I'm too reluctant. Well, actually, I wanted to come back a bit about technology in sourcing while your cross-town neighbor, they've basically famously shown us some speed factories and things like that. Do you think that is something which is anytime getting big or where you also need to invest more for nearshoring?

So nearshoring, you need -- two things here. You need to provide competitive prices, okay? Because at the end of the day, margin matters. Lead time is one thing, but margin is in another thing. Today, with margin, [indiscernible], Asia still lead in terms of margin, that's why we still focus a lot on Asia. If I look at Bangladesh, for instance, from a sourcing standpoint, from the apparel, Bangladesh is able to replenish a product in 4 weeks, and we ship by boat. We don't ship by air, we ship by boat. So the total lead time will be 8 weeks. What we're looking at, at the moment is understanding also better the demand so we can plan better at the back. Once you have that, then you orchestrate your capacity in a way that fit the markets based on the demand that they have, based on the data that we have. So this is where we are working at the moment quite a lot. In terms of resshoring, nearshoring in Europe, we're looking at options today. Actually, we produce in Marseille for Marseille, believe it or not. So we have dedicated t-shirts for Marseille made in Marseille. We're looking at options to make -- to reshore some footwear in Europe as well. We are building some capability here, but it's not going to be huge because the industry isn't there, it disappeared many years ago. And again, if you look at the total supply chain, you can always move a t-shirt factory somewhere, but then you need to bring the fabrics and everything, and that is the bigger problem that we have at the back. So the reshoring in Europe, not so much. We do reshoring in Mexico for P&A, for instance. We do a lot of Mexico for P&A. We do Argentina and Brazil, we do India, we do Turkey. So all these pieces are there, but for Europe itself, it's going to be quite complicated.

Who wants to be the next? Monique?

I just had a question on this idea of sort of building the trend and building heat rather than just taking on the trend. So it's a difference between what's going on with Palermo, which is sort of taking advantage of the trend that's really there versus trying to push that trend with like the low profile, the Mostro and the Speedcat. I guess how confident can you feel ahead of time that those trends you try and build will land? And what flexibility do you have in terms of, I don't know, plan B products or how you then distribute that stuff through outlets or other channels to get rid of it, if it doesn't scale as effectively as you'd like?

Yes. So it's not that we woke up yesterday and we said, okay, we're going to do low profile because we could have done it 2 years ago. And I think one of the things you always need to analyze is the evolution of the consumer. And we tend to be a bit repetitive and luckily, when you see the market going from very bulky silhouettes 5 years ago, and I think, hopefully, you all saw a very chunky Balenciaga that influenced a lot the industry back then. Everybody was wearing chunky shoes. Then naturally, they start waning lower and lower to the ground. And today, you see Terra shoe with 2 components of it. One is much lower, and it's closer, and then it has a T-toe when you -- when you look from a top view. So consumers are getting used to 2 very important elements that it's just 1 step away from low profile. We did 2 elements in that trend. Mostro, that is a very unique Puma proposition to, let's say, immersed point of view. But then, of course, at the same time, we come with a very commercial proposition that is [ kit cut ] that has those 2 elements, that is T-toe and lower to the ground. There's definitely trend information out there that comes in some of them with 18 months, 12 months, and most of the trends, you confirm them as well with the latest fashion weeks releases. So you see all the fashion brands also going into a low-profile direction. But the beauty is identifying, which are those -- let's say, trends that are scalable. Once we know that, and in this particular case, we are already in a stage where we can see that the low profile is going into that direction, we work with Anne and many of our stakeholders to plan and react towards how early or how fast we can control that still because there's no -- today, there is no rule about the amount of month of how that can flow. So definitely, we have the flexibility on how to do that. And one more -- oh, no, I lost my track. I wanted to say about...

Then you pause, and I say -- I think, when you look at, let's say, the last 2 days, I think what we have shown you is 3 pieces of evidence. I mean, first, let's say, from a fashion show perspective, and we know, let's say, how Balenciaga was pushing the baggy trend and it trickled down, evidence number one. Evidence number two, you see, let's say, the heat, which is building up, let's say -- or you heard, let's say, [indiscernible] and so on, talking about, let's say, how well Mostro is resonating with the consumer. So in this very high premium segment, they see, let's say, that consumer demand is awakening. And third, let's say, was Korea. We all know, let's say, also the [ Terra ] trend was significantly earlier in Korea until it - before it came here. And you saw, let's say, that we sold multiple thousands of units, let's say, on that launch event in Korea. So I think these 3 evidences make us, let's say, very confident that we are exactly moving on the right trend. How do we manage, let's say, quantities. I mean, when we are doing this, it's all about, let's say, finding the right balance in terms of demand and supply, and because you need, let's say, to ensure that you have exactly the right allocation. So this is why also why we are allocating and not, let's say, open our books and say you can take any -- as many [indiscernible] as you can, so it's really a managed supply, yes.

Great that you gave me time because you made me a second question about what happened if it doesn't work. Well, first, it's going to work. If not, one of the beauties of our brand, and I think I mentioned it in my presentation, is that we have built our success in many good bestsellers, and not just 1 best seller. And I think as you can see in the multiple inspirations and the multiple sports that allow us to have different answers in terms of franchise in that silhouette will always allow us to have flexibility. So you saw in the showroom, still [ Terra ] shoes, you still saw skate shoes covering that direction. And of course, you saw low profile shoes goes in that direction. So they still have a big role within our portfolio in the [indiscernible].

Yes. I mean I think it's important what you said, it's, let's say, what we do in addition -- I mean, we always, let's say, stay on our feet and react to the trends, and we have that ammunition. So we are continuing to do that. But let's say, the muscle, which we are building on top, which we are now newly developing is, let's say, to be more disciplined on the go-to-market, that's how we are incubating and igniting things.

Okay. Do we have any further questions from the audience?

It sounds like we did quite a good job in the last 24 hours to proactively address some of the topics. Okay. Yes. Okay. Then let me wrap it up. Is this working or not? It's not. Well, first of all, thank you very much for coming. I mean, 24 hours ago, I explained to you why it's important to welcome you here at our home, and I hope you felt it because there's no other way, no better way to make you feel, let's say, the excitement now about the brand, our product and our people. So again, thank you very much for coming. What I also, let's say, told 24 hours ago, if there's one message I would like you to leave is the message that Puma is the challenger. And 24 hours ago, I invited you to see the game like we do, and the game, how we see it, this challenger is on a way -- is on a journey. In 2018, we started that journey really by saying we focus on football and basketball. And we showed you what kind of strength and muscle we have built and how we were able to break through. In the last 24 hours, we guided you through our significant opportunities ahead of us. Sports type prime and we were showing you how big that market is, significantly bigger than the core business where we already have a strong [indiscernible]. Now let's say, we want to tackle the prime business. It's a matter in which we need to build or whether we are able to resonate with the Gen Z consumer. We have shown the same Gen Z consumer who's already buying today our football shoes, who's already buying today our basketball shoes, and now we also need to build up relevance with the same consumer off the court more and take the prime business. We only have low single-digit market share. We talked about running, the most -- the sport with the highest participation, the most versatile use. I think you heard our athletes talk about the amazing benefits of that product and how we are working together with them to make the best product even better. And we showed you that in only 3 years, we were able to enter the top 10, now we are already the fastest-growing performance brand. And we talked briefly about training, a huge business, great margins where we are hardly participating to this one because it was not yet our focus, and we feel 2025 will be the right time with a new restructured product offering, the time to attack it. And we talked about 2 regional priorities, being the #8 brand with only -- or less than 3% market share in the U.S., and only about 1% market share in China, not being in the top 10. That's not, let's say, our ambition. We showed you, let's say, how strong we can be in India as well in Latin America, we have already unveiled, let's say, the strength of the brand and showed how we can build that sustainable growth. Talking about sustainable growth. We talked you through the brand elevation is key. Richard talked to you exactly through, we have identified where we need to improve, where to improve our team, and also we, let's say, go live now with our first brand campaign, to really build that connection to the consumer. And we showed it -- we also showed you how well the current campaign is testing, both long-term impact, but also the short-term sales impact from the testing was very encouraging for us. And we talked you through the sustainable growth strategy. The next 2 years, '24, '25, we want to make sure we're building a substance that we are getting out of this volatility, which we have seen both in the U.S. business as well as the China business, that we have the foundation then for accelerated gains after 2025. And finally, we talked about the 10%. I would like to reiterate again, why are we losing this 170 basis points currently. We have a USD 3 billion hedge in the USD, roughly USD 3 billion, multiply that by $0.06, which we are currently missing, the [ 109 ] to [ 115 ], that is your 180 million. That is 170 to 180 basis points which is currently missing. I think everybody can do that math. But we also said we cannot rely on the currencies to bounce back. So that brand elevation strategy will also be fundamental to improve our margins because then we are able to tackle the higher-margin areas of the business, the prime sector with the best margins, training with great apparel margins, improve our full price relation, be more successful in China. And finally, with that accelerated gains, also realize operational levels. And I hope you also felt it, let's say, with everybody you talked to, there's a great confidence of everybody working here at Puma, that we have everything it takes to unlock that potential. We have an amazing brand, which is just getting better and better every single day, with amazing product. You were able to see our super strong Spring/Summer 2025 collections. Amazing partners, you heard them talk from the retailer side, the supplier side, the athlete side, that they all appreciate working with us. And then it is us, the way we work, in a fast, agile wheel -- team, and always in a great team spirit. So we are super hungry for more. We like you, let's say, to have you on our journey. So thank you very much for coming. It has been a huge pleasure to have you here, and we wish you all safe travels back to wherever home is. Thank you very much for your time. And for the ones who still have time and are hungry, in the canteen, we have a little optional lunch for you prepared. The canteen staff is very happy to welcome you. And for everybody who needs to leave, safe travels home. Thank you.