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FootwearFootwearFootwearFootwear IndustryIndustryIndustryIndustry ReportReportReportReport

FIRFIRFIRFIR 18-Apr-202218-Apr-202218-Apr-202218-Apr-2022

Industry 11Industry 11Industry 11Industry 11 Mgmt 4370-601Mgmt 4370-601Mgmt 4370-601Mgmt 4370-601

Spring 2022Spring 2022Spring 2022Spring 2022

Year 17Year 17Year 17Year 17

Year 17 Scoreboard

Rank

Company Name

Investor Expectation

Score

Best-In- Industry

Score

Weighted Average

Score

Change from Y16

1 High Performance 114 95 105 0 2 Cickers 107 77 92 -12 2 E Terra Footwear 106 78 92 -7 4 I Company 98 72 85 -15 5 Famous Footwear 96 69 83 +6 6 B Alpha 81 61 71 -26 7 DS Footwear 33 28 31 -13 7 Groundbreakers 43 18 31 +15 9 A Company 10 8 9 -1

Game-To-Date Scoreboard

Rank

Company Name

Investor Expectation

Score

Best-In- Industry

Score

Weighted Average

Score

Bonus Points

Overall G-T-D Score

1 High Performance 116 94 105 2 107 2 E Terra Footwear 113 89 101 3 104 3 Cickers 112 83 98 2 100 4 I Company 105 82 94 3 97 5 Famous Footwear 91 66 79 3 82 6 B Alpha 81 59 70 2 72 7 DS Footwear 46 38 42 2 44 8 Groundbreakers 20 16 18 1 19 9 A Company 11 9 10 0 10

Investor Expectation Score (I.E.)

Investors and company boards of directors have established targets for the five scoring measures that appear on pages 2 and 3 of this report. The I.E. score ranges from 0 to 120 (if all targets are exceeded by 40% or more). Click the Help button (upper-right) for more information.

Best-In- Industry Score (B-I-I)

The B-I-I score measures each company's performance relative to the best performing company on each of the five scoring measure. The B-I-I score ranges from 0 to 100. To score 100 a company must be the best performing company in the industry on all five scoring measures.

Weighted Average Score

The weighted average score combines the Investor Expectation Score and the Best-In-Industry Score using a 50%-50% weighting as specified by the course instructor. Detailed explanations of scoring are provided in the Help documents asociated with pages 1, 2, and 3 of this report.

Page 1

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Industry 11 S�� M�� Year 17

Earnings Per Share ($ per share)

Earnings Per Share scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected EPS shown below each yearly column head. A highlighted number indicates best-in-industry performance. Game-To-Date EPS scores are based on a weighted average of the annual EPS performances.

Y11 (2.50)

Y12 (3.00)

Y13 (3.50)

Y14 (4.00)

Y15 (4.50)

Y16 (5.25)

Y17 (6.00)

Y18 (7.00)

Y19 (8.50)

Y20 (10.00)

Wgt. Avg. (4.11) I.E. B-I-I

Y17 Score I.E. B-I-I

G-T-D Score

A 1.42 0.88 0.18 -0.73 -0.76 -1.46 -4.37 -0.69 0 0 0 0 A B 1.42 1.63 1.59 1.96 5.76 8.37 5.50 3.67 18 9 18 9 B C 3.61 3.32 2.50 3.32 9.50 13.19 9.30 6.10 24 16 24 16 C D 1.91 1.40 0.53 0.70 2.49 1.19 0.07 1.13 0 0 5 3 D E 3.53 6.87 6.69 7.05 9.88 11.73 9.79 7.87 24 17 24 20 E F 2.05 0.23 3.83 3.46 4.99 7.01 8.19 4.17 24 14 20 11 F G 3.44 4.13 2.46 2.39 -0.24 -15.82 0.23 -1.31 1 0 0 0 G H 1.69 2.60 4.41 5.12 7.70 12.37 11.81 6.45 24 20 24 16 H I 1.97 4.54 4.69 4.80 11.47 12.33 8.42 6.99 24 14 24 18 I

Return On Equity (%)

Return On Equity scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected ROE shown below each yearly column head. A highlighted number indicates best-in-industry performance. Game-To-Date ROE scores are based on a weighted average of the annual ROE performances.

Y11 (21.0)

Y12 (22.0)

Y13 (23.0)

Y14 (24.0)

Y15 (25.0)

Y16 (26.0)

Y17 (27.0)

Y18 (28.0)

Y19 (29.0)

Y20 (30.0)

Wgt. Avg. (24.0) I.E. B-I-I

Y17 Score I.E. B-I-I

G-T-D Score

A 13.3 7.7 1.5 -6.3 -7.0 -15.0 -63.8 -6.6 0 0 0 0 A B 13.3 14.8 12.8 14.3 33.2 45.7 33.7 25.8 22 20 21 18 B C 29.5 22.3 15.1 17.6 39.6 41.2 23.5 27.9 17 14 22 20 C D 16.7 10.9 4.4 6.2 21.0 8.7 0.5 8.8 0 0 7 6 D E 28.9 40.4 29.6 25.4 28.6 27.2 19.9 27.0 15 12 21 19 E F 17.8 1.8 26.1 18.9 22.1 24.5 26.0 21.1 19 15 18 15 F G 28.3 26.1 12.9 14.3 -2.3 -828.0 n.m. -15.0 20 0 0 0 G H 14.9 19.3 27.7 26.9 30.2 34.8 29.8 28.4 21 18 22 20 H I 18.0 33.0 20.6 14.0 28.3 24.2 15.5 21.2 11 9 18 15 I

Stock Price ($ per share)

Stock Price scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected stock price shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date scores are based solely on the most recent year's stock price.

Y11 (40.00)

Y12 (50.00)

Y13 (65.00)

Y14 (80.00)

Y15 (100.00)

Y16 (125.00)

Y17 (150.00)

Y18 (180.00)

Y19 (215.00)

Y20 (250.00) I.E. B-I-I

Y17 Score I.E. B-I-I

G-T-D Score

A 12.31 6.36 5.21 5.16 5.11 5.06 5.01 1 0 1 0 A B 12.40 8.32 11.75 11.55 115.27 193.16 84.52 11 6 11 6 B C 81.23 50.38 20.79 30.64 178.80 334.22 172.55 22 11 22 11 C D 13.75 7.55 5.21 5.16 23.70 9.26 5.38 1 0 1 0 D E 81.40 182.26 169.96 144.56 228.04 264.12 181.46 22 12 22 12 E F 17.87 8.07 57.58 33.74 48.29 100.57 129.60 17 9 17 9 F G 68.03 75.11 31.33 12.95 5.90 5.06 5.01 1 0 1 0 G H 12.30 25.52 91.33 95.15 177.34 309.68 303.98 24 20 24 20 H I 22.62 102.31 87.23 87.13 291.26 302.13 145.53 19 10 19 10 I

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Industry 11 S�� M�� Year 17 (concluded)

Credit Rating Credit Rating scores are based on a 20% (20-point) weighting. A bolded credit rating indicates achievement of the investor expected credit rating shown below each yearly column head. Game-To-Date credit rating scores are based solely on the most recent year's credit rating performance.

Y11 (B+)

Y12 (B+)

Y13 (B+)

Y14 (A–)

Y15 (A–)

Y16 (A–)

Y17 (A)

Y18 (A)

Y19 (A)

Y20 (A) I.E. B-I-I

Y17 Score I.E. B-I-I

G-T-D Score

A B B– C– C– C– C– C– 0 1 0 1 A B B B+ A– B+ A A B– 11 11 11 11 B C A B– C C B+ A A+ 24 20 24 20 C D B C+ C– C+ A B+ B 14 14 14 14 D E A A A+ A+ A+ A+ A+ 24 20 24 20 E F B+ C– C+ C+ B A A 20 19 20 19 F G A B– C+ C C– C– C– 0 1 0 1 G H B B B B+ A A+ A+ 24 20 24 20 H I B B B A A A A 20 19 20 19 I

Image Rating Image Rating scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected image rating shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date scores are based on an average of the most recent three years.

Y11 (70)

Y12 (72)

Y13 (72)

Y14 (75)

Y15 (75)

Y16 (77)

Y17 (77)

Y18 (80)

Y19 (80)

Y20 (80)

Y15-Y17 Average I.E. B-I-I

Y17 Score I.E. B-I-I

G-T-D Score

A 60 50 45 43 40 39 36 38 9 7 10 8 A B 60 59 58 69 78 76 74 76 19 15 20 15 B C 81 85 81 79 81 79 78 79 20 16 20 16 C D 72 61 74 77 73 75 70 73 18 14 19 15 D E 83 86 90 83 94 88 86 89 21 17 22 18 E F 70 69 64 63 57 58 61 59 16 12 16 12 F G 82 77 76 68 69 66 86 74 21 17 19 15 G H 68 75 78 85 90 96 87 91 21 17 22 18 H I 72 100 100 100 100 100 100 100 24 20 24 20 I

High Average Low Total Dollars ($000s)

High Average Low Per Unit Sold ($/unit)

Industry 11 Cash Outlays for Corporate Social Responsibility and Citizenship

High Average Low

Image Rating Points Generated from

CSRC Expenditures

Year 11 16,789 9,620 0 2.10 1.09 0.00 5 3 0 Year 12 16,965 5,895 0 2.01 0.57 0.00 8 4 0 Year 13 17,400 5,947 0 2.18 0.66 0.00 10 5 0 Year 14 44,085 10,164 0 5.03 1.04 0.00 13 7 0 Year 15 10,660 6,089 0 1.42 0.60 0.00 17 9 0 Year 16 14,900 8,119 0 2.33 0.78 0.00 18 9 0 Year 17 13,743 7,712 0 1.34 0.55 0.00 19 10 0 Year 18 Year 19 Year 20

Corporate Social Responsibility and Citizenship

Beginning in Year 14, the World Council for Exemplary Corporate Citizenship presents a distinguished award to the company making the highest cash outlays as a percentage of revenues for corporate social respon- sibility and citizenship initiatives.

Award Winner 2nd Place Y14 Groundbreakers High Performance Y15 Groundbreakers Famous Footwear Y16 High Performance Groundbreakers Y17 Famous Footwear B Alpha Y18 Y19 Y20

Corporate Responsibility Award for Exemplary Corporate Citizenship

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Industry 11 B�� P�� A�� Year 17

BULL'S EYE AWARD for Accurately Forecasting Total Revenues,

Earnings Per Share, and Image Rating

One bonus point added to any company's game-to-date score when actual performance on Total Revenues AND Earnings Per Share vary by no more than 5% from projected performance AND when Image Rating varies by no more than 4 points from the projected image rating.

Year 17 Forecast

Year 17 Actual

Percent Variance

Revenues (within ± 5%) Year 17

Forecast Year 17 Actual

Percent Variance

EPS (within ± 5% or ± 10¢) Year 17

Forecast Year 17 Actual

Point Variance

Image Rating (within ± 4 points) Year 17 Bull's Eye

Award

Cumu- lative

Awards A 0 246,891 0.0 % 0.00 -4.37 0.0 % 0 36 0 pts. No 0 A B 872,111 835,422 -4.2 % 6.06 5.50 -9.3 % 77 74 -3 pts. No 2 B C 1,148,781 1,099,156 -4.3 % 10.20 9.30 -8.8 % 81 78 -3 pts. No 1 C D 541,273 514,566 -4.9 % 0.16 0.07 -56.1 % 71 70 -1 pts. Yes 1 D E 1,028,593 932,917 -9.3 % 11.68 9.79 -16.2 % 92 86 -6 pts. No 3 E F 728,981 650,794 -10.7 % 9.70 8.19 -15.6 % 64 61 -3 pts. No 1 F G 824,879 928,984 +12.6 % -0.79 0.23 +128.9 % 79 86 +7 pts. No 0 G H 1,223,859 1,185,160 -3.2 % 12.50 11.81 -5.5 % 90 87 -3 pts. No 2 H I 2,038,842 1,841,603 -9.7 % 10.84 8.42 -22.3 % 100 100 0 pts. No 2 I

Trends in Variances Between Projected and Actual Performance (company and industry variances between projected and actual revenues, EPS, and image rating)

Industry 11 Variance

Largest Average Smallest

Company D Variance

Year 11 -1.8 %

-12.3 % -20.7 % -19.2 %

Year 12 0.0 %

-13.5 % -41.4 % -38.3 %

Year 13 +1.2 % -8.0 %

-24.2 % -22.2 %

Year 14 +2.7 %

-15.1 % -29.7 % -22.3 %

Year 15 +9.5 % -6.3 %

-50.8 % +2.6 %

Year 16 +18.2 % +0.7 %

-24.5 % +11.6 %

Year 17 +50.1 %

-1.9 % -24.4 % -20.8 %

Year 18 Year 19 Year 20

Y11 Score Δ

Y12 Score Δ

Y13 Score Δ

Y14 Score Δ

Y15 Score Δ

Y16 Score Δ

Y17 Score Δ

Y18 Score Δ

Y19 Score Δ

Y20 Score

Current-Year Scores and Net Changes Cumu- lative

Awards A 56 -20 36 -21 15 -3 12 -1 11 -1 10 -1 9 0 A B 56 -4 52 +2 54 +1 55 +35 90 +7 97 -26 71 0 B C 108 -33 75 -26 49 +7 56 +40 96 +8 104 -12 92 1 C D 65 -26 39 -13 26 +9 35 +28 63 -19 44 -13 31 1 D E 108 -1 107 +1 108 -3 105 -4 101 -2 99 -7 92 0 E F 71 -49 22 +50 72 -14 58 +6 64 +13 77 +6 83 2 F G 105 -24 81 -27 54 -10 44 -27 17 -1 16 +15 31 1 G H 61 +5 66 +24 90 +3 93 +3 96 +9 105 0 105 0 H I 70 +23 93 -5 88 0 88 +16 104 -4 100 -15 85 1 I

Δ = net change in score between years Highlighted figure = Leap Frog Award winner

for Most Improved Overall Score (current year to current year)

LEAP FROG AWARD Beginning in Year 12, one bonus point is added to the game-to-date overallscore of the company whose current-year overall score is most improved over the prior year. If all companies fail to improve their scores from one year to the next, then no Leap Frog bonus is awarded.

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Industry 11 I�� O�� Year 17

Materials Prices

Price Adjustments

Materials Usage Facilities Utilization

Base Prices of Materials ($ per pair)

Materials Prices in Year 17 ($ per pair)

$6.00 -0.12 +0.39 $6.27

Standard $12.00 +0.96 +0.78

$13.74

Superior High industry-wide superior materials usage (44.0%) lead to superior materials prices that were 8.0% above the base and standard materials prices that were 2.0% below the base. Industry-wide utilization of production capability was above 110% and resulted in materials price increases of 6.5%.

Notes

Footwear Production and Sales

Branded Demand (000s of pairs)

Forecast Actual

Stockouts No. of Companies Unfilled Orders (000s)

Pairs Available (000s)

Pairs Sold (internet + wholesale)

Private Label

Demand Forecast (000s of pairs) Pairs Offered (000s) Pairs Sold (000s)

Superior Materials Usage Utilization of Production Capability

North America

39% 113.3% 54,712 31,512 31,923 31,922

1 0

3,591 4,536 3,591

Europe Africa

48% 119.1% 40,149 27,097 27,090 27,089

0 0

3,591 3,631 3,102

Asia Pacific

44% 117.3% 41,982 26,601 26,631 26,630

0 0

4,068 4,068 3,128

Latin America

50% 119.7% 40,021 26,995 27,270 27,271

1 0

4,068 3,857 3,657

Average or Total

44% 116.5%

176,864 112,205 112,914 112,912

15,318 16,092 13,478

⇦ % usage down 0.8 points from Year 16. ⇦ % usage down 1.2 points from Year 16.

⇦ 56.6% higher than Year 17 demand.

⇦ From page 4 of FIR for Year 16. ⇦ Actual branded demand was 0.6% higher

than forecast branded demand due to increased competitive intensity.

⇦ Extent to which orders for branded pairs went unfilled due to inventory shortages at one or more companies.

⇦ From page 4 of FIR for Year 16. ⇦ Private-label pairs offered was higher than

actual private-label demand by 4.8%.

Notes

Demand Forecast

Branded Demand (internet + wholesale)

Year 18 Year 19 Year 20

Private-Label Demand Year 18 Year 19 Year 20

North America

32,947 34,261 35,630

3,915 4,266 4,653

Europe Africa 27,993 29,109 30,271

3,915 4,266 4,653

Asia Pacific 28,542 30,829 33,295

4,518 5,013 5,562

Latin America

29,186 31,525 34,046

4,518 5,013 5,562

Global Total

118,668 125,724 133,242

16,866 18,558 20,430

Global demand for Y11-Y15 is expected to grow by 7%-9% annually, slowing to 5%-7% during Y16-Y20. The projected growth rates are not the same for all regions, as shown in the table on page 5 of the Player's Guide. Actual demand growth may vary from the forecast due to stronger or weaker competitive efforts on the part of rival companies.

Notes

Supply / Demand Analysis

Beginning Year 18 Inventory Potential Y18 Production (with OT) Potential Global Supply

63,952 167,700 231,652

Potential Footwear Suppy in Year 18 Branded Demand Forecast Private-Label Demand Forecast Expected Global Demand

118,668 16,866

135,534

Expected Footwear Demand in Year 18 Potential global supply (at max OT) in the upcoming year is 70.9% greater than projected global demand. Such excess production capability will result in FIERCE competition for the next several years. Companies with underutilized production capability are advised to sell unneeded production equipment.

Analysis

Facility Space Production Equipment

N.A. E-A A-P L.A.

Year 17 Facility Space (000s of pairs available for prod. equipmernt)

N.A. E-A A-P L.A.

Construction of New Space (initiated in Y17 and available in Y18)

Total Space

Available in Y18

N.A. E-A A-P L.A. Total

Year 17 Production Equipment (000s of pairs available for production)

A 5,000 0 6,000 0 0 0 0 0 11,000 A 4,000 0 4,000 0 8,000 A B 5,000 1,000 6,000 0 2,000 2,000 2,000 2,000 20,000 B 5,000 1,000 6,000 0 12,000 B C 5,000 0 6,000 5,000 0 0 0 0 16,000 C 5,000 0 6,000 5,000 16,000 C D 5,000 2,000 7,000 2,000 0 0 0 0 16,000 D 4,000 1,250 1,000 1,250 7,500 D E 6,000 3,000 6,000 0 0 0 0 0 15,000 E 4,000 2,750 6,000 0 12,750 E F 7,000 1,000 8,000 2,000 0 0 0 0 18,000 F 7,000 0 8,000 0 15,000 F G 9,000 8,000 9,000 5,000 0 0 0 0 31,000 G 8,000 4,000 5,000 4,000 21,000 G H 5,000 4,000 7,000 5,000 0 0 0 0 21,000 H 5,000 3,000 5,000 4,500 17,500 H I 7,000 7,000 8,000 8,000 1,000 1,000 1,000 1,000 34,000 I 7,000 7,000 8,000 8,000 30,000 I

54,000 26,000 63,000 27,000 3,000 3,000 3,000 3,000 182,000 49,000 19,000 49,000 22,750 139,750

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Industry 11 F�� P�� S�� Year 17

Income Statement Data ($000s)

Internet Wholesale P-label Total Net Sales Revenues Cost of

Pairs Sold Warehouse Expenses

Marketing Expenses

Admin Expenses

Operating Profit

Interest Exp (Inc)

Income Taxes

Net Profit

A 47,525 199,366 0 246,891 138,365 40,919 71,670 16,147 -20,210 67,142 0 -87,352 A B 323,917 511,505 0 835,422 412,646 79,722 147,690 22,649 172,715 19,903 45,844 106,968 B C 274,714 769,329 55,113 1,099,156 503,973 82,954 257,688 25,147 229,394 13,048 63,606 148,413 C D 145,884 313,661 44,355 514,566 377,516 46,542 61,153 18,752 10,603 6,585 1,205 2,813 D E 314,929 516,197 71,282 932,917 397,178 74,445 183,943 25,650 251,701 -3,407 76,232 177,876 E F 183,947 466,847 0 650,794 247,841 61,162 114,042 31,637 196,112 -2,858 59,691 139,279 F G 271,640 498,669 78,073 928,984 414,334 121,668 191,920 32,653 168,409 161,947 0 6,462 G H 403,110 657,727 98,031 1,185,160 537,187 103,217 191,067 32,149 321,540 8,699 93,852 218,989 H I 406,373 1,150,515 204,003 1,841,603 987,416 135,038 407,759 41,653 269,737 12,055 77,305 180,377 I

263,560 564,868 61,206 915,055 446,273 82,852 180,770 27,382 177,778 31,457 46,415 99,314

Selected Balance Sheet Data ($000s)

Cash On Hand

Current Assets

Fixed Assets

Total Assets

Assets Current

Liabilities Long-Term

Loans Total

Liabilities

Liabilities Beginning

Equity Stock Sale (Purchase)

Earnings Retained

Ending Equity

Shareholder Equity

A 0 533,928 233,560 767,488 664,388 9,900 674,288 180,552 0 -87,352 93,200 A B 0 179,280 542,537 721,817 100,692 259,700 360,392 273,669 -6,579 94,335 361,425 B C 26,828 312,155 536,872 849,027 64,501 125,000 189,501 602,737 -67,682 124,471 659,526 C D 122,343 309,795 335,268 645,063 25,238 0 25,238 610,642 6,370 2,813 619,825 D E 306,305 524,722 462,911 987,633 43,489 37,000 80,489 879,433 -132,913 160,624 907,144 E F 13,154 303,183 531,762 834,945 303,884 104,000 407,884 642,742 -354,960 139,279 427,061 F G 0 641,120 814,632 1,455,752 1,133,295 475,000 1,608,295 -159,005 0 6,462 -152,543 G H 27,671 290,603 625,265 915,868 71,713 178,300 250,013 804,458 -224,959 86,356 665,855 H I 0 538,292 975,427 1,513,719 222,642 199,000 421,642 1,227,940 -316,240 180,377 1,092,077 I

55,145 403,675 562,026 965,701 292,205 154,211 446,416 562,574 -121,885 78,596 519,286

Selected Financial Statistics

Gross Profit

Margin

Operating Profit

Margin

Net Profit

Margin

Profitability Measures Div. Per Share ($/share)

Total Div. Payment

($000s)

Payout (percent of net profit)

Dividend Data Credit Rating Measures Interest Coverage

Ratio

Debt to Assets Ratio

Default Risk Ratio

Risk of

Default Current Ratio

Days of Inventory

Shares of Stock

Outstanding (000s of shares)

A 44.0% -8.2% -35.4% 0.00 0 0.0% -0.30 0.88 0.00 N/A 0.80 1,270 days 20,000 A B 50.6% 20.7% 12.8% 0.65 12,633 11.8% 8.68 0.50 0.62 High 1.78 45 days 19,436 B C 54.1% 20.9% 13.5% 1.50 23,942 16.1% 17.58 0.22 7.88 Low 4.84 62 days 15,961 C D 26.6% 2.1% 0.5% 0.00 0 0.0% 1.61 0.04 0.89 High 12.27 108 days 40,000 D E 57.4% 27.0% 19.1% 0.95 17,252 9.7% 1,000.00 0.08 12.87 Low 12.07 73 days 18,160 E F 61.9% 30.1% 21.4% 0.00 0 0.0% 1,000.00 0.49 1,000.00 Low 1.00 257 days 17,000 F G 55.4% 18.1% 0.7% 0.00 0 0.0% 1.04 1.10 0.09 High 0.57 688 days 28,612 G H 54.7% 27.1% 18.5% 7.15 132,633 60.5% 36.96 0.27 13.54 Low 4.05 60 days 18,550 H I 46.4% 14.6% 9.8% 0.00 0 0.0% 22.38 0.28 7.40 Low 2.42 96 days 21,410 I

51.2% 19.4% 10.9% 1.14 20,718 10.9% 12.56 0.43 4.81 4.42 295 days 22,125

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Industry 11 P�� B�� Year 17

Production Benchmarks

North America Low Average High Industry 11 Company

Labor Statistics

Total Regular Compensation ($ / worker / year) Workforce Productivity (pairs / worker / year) Production Labor Cost ($ per pair after rejects) Supervisory Compensation ($ / supervisor / year)

Branded Production TQM/6-Sigma Spending Current ($/pair produced)

Cumulative ($000s)

Superior Materials Usage

Total Production Cost ($ per pair produced) Reject Rate

Percentage of New Production Equipment

Cost Per S/Q Star (total production cost per pair ÷ S/Q rating)

0% 40,528

4,505 6.27

63,691 0%

0.00 28,661

18.93 1.5% 2.82

64% 44,770

5,463 8.81

65,443 44% 1.51

80,234 29.20 6.7% 5.65

100% 50,604

7,636 10.78

73,075 100% 3.00

125,814 41.07 13.2% 13.52

0% 50,604

4,941 10.78

63,691 94% 2.60

84,646 41.07 9.5% 5.40

Europe-Africa Low Average High Industry 11 Company

Labor Statistics

Total Regular Compensation ($ / worker / year) Workforce Productivity (pairs / worker / year) Production Labor Cost ($ per pair after rejects) Supervisory Compensation ($ / supervisor / year)

Branded Production TQM/6-Sigma Spending Current ($/pair produced)

Cumulative ($000s)

Superior Materials Usage

Total Production Cost ($ per pair produced) Reject Rate

Percentage of New Production Equipment

Cost Per S/Q Star (total production cost per pair ÷ S/Q rating)

0% 21,871

3,568 5.63

38,215 14% 0.70

3,240 21.43 1.7% 2.35

78% 26,311 4,083

6.87 38,727

51% 1.70

15,849 31.57 5.1% 4.36

100% 29,764

4,313 7.82

40,141 100% 4.00

39,720 58.36 9.2% 7.68

0% 26,987

3,568 7.82

38,215 66% 1.00

7,973 58.36 9.2% 7.68

Asia-Pacific Low Average High Industry 11 Company

Labor Statistics

Total Regular Compensation ($ / worker / year) Workforce Productivity (pairs / worker / year) Production Labor Cost ($ per pair after rejects) Supervisory Compensation ($ / supervisor / year)

Branded Production TQM/6-Sigma Spending Current ($/pair produced)

Cumulative ($000s)

Superior Materials Usage

Total Production Cost ($ per pair produced) Reject Rate

Percentage of New Production Equipment

Cost Per S/Q Star (total production cost per pair ÷ S/Q rating)

0% 12,865

3,305 3.55

26,539 0%

0.00 27,168

16.85 1.3% 2.53

82% 17,798

3,957 4.71

27,298 46% 1.41

95,539 25.75 5.5% 4.30

100% 21,124

4,371 5.23

30,449 100% 2.90

179,520 43.73 12.7%

6.48

50% 19,817

4,128 5.05

26,539 54% 1.80

89,973 43.73 1.7% 5.83

Latin America Low Average High Industry 11 Company

Labor Statistics

Total Regular Compensation ($ / worker / year) Workforce Productivity (pairs / worker / year) Production Labor Cost ($ per pair after rejects) Supervisory Compensation ($ / supervisor / year)

Branded Production TQM/6-Sigma Spending Current ($/pair produced)

Cumulative ($000s)

Superior Materials Usage

Total Production Cost ($ per pair produced) Reject Rate

Percentage of New Production Equipment

Cost Per S/Q Star (total production cost per pair ÷ S/Q rating)

0% 17,148

3,494 4.36

26,539 12% 0.80

9,499 19.84 2.4% 3.05

78% 18,314

3,994 4.83

26,751 56% 2.06

34,727 30.42 5.7% 4.27

100% 20,263

4,325 5.23

27,334 100% 4.00

72,680 54.25 10.5%

7.23

0% 17,501

3,494 5.23

26,539 86% 1.60

9,499 54.25 10.5%

7.23

Note: To protect individual companies from having competitively sensitive data revealed to rival companies, only the industry averages are reported for regions with 2 or 3 production facilities. Industry low and high numbers are reported only for regions with 4 or more production facilities. No benchmark data is reported for regions with only 1 production facility.

4/19/22, 9:29 AM BSG Decisions & Reports

https://www.bsg-online.com/users/program/v3/fir/page2 8/9

Industry 11 P�� B�� Year 17 (concluded)

Branded Operating Benchmarks

North America Low Average High Industry 11 Company

Internet Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin

Wholesale Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin

Distribution and Warehouse Costs ($ per pair available for sale) Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment)

1.95 20.05 11.24

-18.51 -23.3%

6.27 -2.41 -5.0%

5.10 30.08 24.41 23.01 23.8% 11.39 10.93 17.8%

6.49 42.06 49.98 39.36 44.2% 15.73 21.65 34.1%

5.74 42.06 11.24 27.26 28.3%

6.27 4.76 7.9%

Europe-Africa Low Average High Industry 11 Company

Internet Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin

Wholesale Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin

Distribution and Warehouse Costs ($ per pair available for sale) Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment)

4.21 22.43 10.03

-14.89 -18.9%

3.11 -8.49

-17.4%

8.49 32.60 22.21 18.72 20.5% 10.68

6.43 11.0%

13.29 55.58 39.90 33.41 39.1% 17.69 22.64 35.8%

7.35 55.58 13.51 13.22 13.4%

5.83 -7.55

-12.2%

Asia-Pacific Low Average High Industry 11 Company

Internet Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin

Wholesale Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin

Distribution and Warehouse Costs ($ per pair available for sale) Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment)

2.86 17.88

7.88 -8.33

-10.7% 4.25

-4.56 -8.0%

5.65 27.39 23.40 23.74 25.4% 10.57 10.21 18.5%

8.39 45.70 43.04 54.24 56.3% 18.59 23.91 44.7%

7.32 45.70 20.25 11.01 11.8%

8.06 -4.56 -8.0%

Latin America Low Average High Industry 11 Company

Internet Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin

Wholesale Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin

Distribution and Warehouse Costs ($ per pair available for sale) Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment)

3.93 19.82 13.63

-15.10 -18.1%

8.16 -13.12 -22.2%

9.32 33.01 24.67 21.43 21.9% 11.59 8.43

13.6%

16.17 54.67 46.17 35.04 35.5% 16.79 20.95 34.5%

9.80 54.67 16.72

7.76 8.2%

10.07 -13.12 -22.2%

Private-Label Operating Benchmarks

Low Average High Industry 11 Company

North America Cost Per Pair Sold (production, freight, tariffs, x-rates)Margin Over Direct Cost ($ per pair sold) 26.18 +3.13

33.28 +8.39

42.57 +17.37

42.57 +5.57

Europe-Africa Cost Per Pair Sold (production, freight, tariffs, x-rates)Margin Over Direct Cost ($ per pair sold) 22.20 +4.42

29.54 +11.91

32.26 +22.32

0.00 0.00

Asia-Pacific Cost Per Pair Sold (production, freight, tariffs, x-rates)Margin Over Direct Cost ($ per pair sold) 23.58 +6.99

25.97 +10.56

29.14 +18.23

0.00 0.00

Latin America Cost Per Pair Sold (production, freight, tariffs, x-rates)Margin Over Direct Cost ($ per pair sold) 23.47 -1.95

31.07 +9.62

50.63 +18.54

50.63 -1.95

4/19/22, 9:29 AM BSG Decisions & Reports

https://www.bsg-online.com/users/program/v3/fir/page2 9/9

Industry 11 C�� E�� I�� T�� Year 17

Celebrity Endorsements

Celebrity Year 18

Contract Holder No. of Offers

Highest Offer

2nd Highest

3rd Highest

Most Recent Contract Offers (letter in parens indicates company that made offer)

Judy Judge Groundbreakers 3 1,500 (B) 1,500 (G) 1,305 (E) Kimmie Jimmel I Company 3 2,500 (I) 2,200 (B) 1,500 (E) Bud Birkenstock B Alpha 3 1,900 (B) 1,800 (I) 1,605 (E) Jose Montana DS Footwear 3 1,500 (G) 1,400 (D) 1,335 (E) Samuelle Jackson B Alpha 2 2,300 (B) 1,625 (E) 0 Bronko Mars I Company 2 2,000 (I) 1,805 (E) 0 Steff Caraway E Terra Footwear 1 1,350 (E) 0 0 Jay XYZ I Company 2 2,100 (I) 1,333 (E) 0 Nunchuck Norris B Alpha 5 2,600 (B) 2,400 (G) 2,175 (H) Roger Federation High Performance 3 1,900 (H) 1,227 (E) 501 (G) Nick Shavan Groundbreakers 4 2,400 (G) 2,100 (D) 2,000 (B) Anderson Blooper B Alpha 4 2,000 (B) 1,500 (H) 677 (E) Mic Jagermeister Groundbreakers 5 2,400 (G) 2,200 (B) 2,100 (D)

Co. N.A. E-A A-P L.A. A 0 0 0 0 B 265 325 300 300 C 0 0 0 0 D 60 50 60 95 E 75 80 95 60 F 0 0 0 0 G 235 240 205 170 H 75 85 65 100 I 235 185 220 230

Avg. 105 107 105 106

Year 18 Consumer Appeal (sum of consumer appeal indexes for each company in the upcoming year)

Pricing and S/Q Rating Trends

N�� A�� E��-A��

A��-P�� L�� A��

Internet Price Wholesale Price S/Q Rating

10 11 12 13 14 15 16 17 18 19 20 $40

$50

$60

$70

$80

$90

4.0★

4.5★

5.0★

5.5★

6.0★

6.5★

Year

P ric

S /Q

R at

in g

Internet Price Wholesale Price S/Q Rating

10 11 12 13 14 15 16 17 18 19 20 $50

$60

$70

$80

$90

$100

4.0★

4.5★

5.0★

5.5★

6.0★

6.5★

Year

P ric

S /Q

R at

in g

Internet Price Wholesale Price S/Q Rating

10 11 12 13 14 15 16 17 18 19 20 $40

$50

$60

$70

$80

$90

4.0★

4.5★

5.0★

5.5★

6.0★

6.5★

Year

P ric

S /Q

R at

in g

Internet Price Wholesale Price S/Q Rating

10 11 12 13 14 15 16 17 18 19 20 $50

$60

$70

$80

$90

4.0★

4.5★

5.0★

5.5★

6.0★

6.5★

Year

P ric

S /Q

R at

in g