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FootwearFootwearFootwearFootwear IndustryIndustryIndustryIndustry ReportReportReportReport

FIRFIRFIRFIR 27-Nov-202227-Nov-202227-Nov-202227-Nov-2022

Industry 52Industry 52Industry 52Industry 52 MGT 4337.31MGT 4337.31MGT 4337.31MGT 4337.31

Year 20Year 20Year 20Year 20

Year 20 Scoreboard

Rank

Company Name

Investor Expectation

Score

Best-In- Industry

Score

Weighted Average

Score

Change from Y19

1 EndurNCE 108 95 102 +8 2 F - Tread Threads 107 85 96 +8 3 Dynasty Shoes 100 78 89 0 4 Jack In The Box 80 63 72 +9 5 Klassy Feet 67 54 61 -2 6 C Company 59 49 54 +8 7 L Zeel Company 55 44 50 +9 8 All Brands Shoes 50 42 46 +12 9 Icon Athletics 34 28 31 +5

10 Genesis Shoes 22 20 21 +1 11 BeRite Shoes 14 12 13 -1 12 H Cocoa Runners 10 9 10 -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 EndurNCE 110 97 104 1 105 2 F - Tread Threads 109 86 98 4 102 3 Dynasty Shoes 95 73 84 2 86 4 Jack In The Box 91 72 82 3 85 5 Klassy Feet 77 61 69 1 70 6 C Company 59 49 54 1 55 6 L Zeel Company 60 48 54 1 55 8 All Brands Shoes 51 43 47 2 49 9 Icon Athletics 40 32 36 0 36

10 Genesis Shoes 21 19 20 2 22 11 BeRite Shoes 14 12 13 0 13 12 H Cocoa Runners 10 9 10 1 11

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 52 S�� M�� Year 20

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. (5.43) I.E. B-I-I

Y20 Score I.E. B-I-I

G-T-D Score

A 1.68 3.18 2.87 2.18 1.75 2.67 1.79 1.82 1.56 3.55 2.29 7 4 8 4 A B 1.94 2.02 1.86 0.80 1.11 -0.40 -0.91 -4.30 -3.33 -3.66 -0.78 0 0 0 0 B C 1.94 2.01 2.93 1.45 0.68 2.70 2.71 2.48 2.58 4.46 2.36 9 5 9 5 C D 1.88 3.56 3.39 3.61 4.37 5.60 5.80 4.86 9.04 11.61 5.22 22 13 19 10 D E 2.70 6.48 10.33 10.00 9.73 12.40 12.78 12.55 11.55 17.72 10.44 24 20 24 20 E F 2.39 5.52 7.21 3.52 7.47 9.67 11.32 9.72 9.74 14.24 8.08 24 16 24 15 F G 0.61 0.88 -0.30 0.44 0.05 -1.15 -5.25 -23.01 -33.05 -29.76 -9.05 0 0 0 0 G H 1.96 1.82 -0.23 1.13 -1.66 -2.36 -4.54 -5.71 -8.35 -10.16 -3.18 0 0 0 0 H I 2.54 3.94 3.01 3.47 0.73 1.00 0.74 0.47 0.85 1.55 1.73 3 2 6 3 I J 3.41 6.62 10.56 9.72 6.21 3.53 7.78 6.70 4.27 7.41 6.63 15 8 22 13 J K 1.77 1.52 3.64 3.15 4.88 5.47 5.87 5.72 4.90 5.18 4.44 10 6 16 9 K L 2.09 3.33 2.61 0.37 1.77 5.21 3.51 2.50 0.41 3.11 2.49 6 4 9 5 L

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. (26.0) I.E. B-I-I

Y20 Score I.E. B-I-I

G-T-D Score

A 14.8 23.1 17.0 11.0 9.4 12.8 7.8 7.4 6.0 13.2 11.1 9 9 9 9 A B 17.7 16.2 13.0 5.1 6.7 -2.8 -6.5 -38.1 -44.4 -106.4 -6.7 0 0 0 0 B C 17.7 16.2 19.7 8.3 3.9 14.0 12.4 10.1 9.5 13.0 12.0 9 9 9 9 C D 17.0 25.5 19.6 17.7 17.9 19.1 16.5 12.0 19.2 23.9 18.5 16 16 14 14 D E 22.8 39.4 41.5 28.7 22.0 22.8 19.9 18.3 16.9 23.5 23.1 16 16 18 18 E F 20.5 36.3 30.4 12.2 21.9 22.9 22.0 16.5 15.2 20.3 20.2 14 14 16 16 F G 5.7 7.7 -2.5 3.7 0.4 -9.9 -62.4 n.m. n.m. n.m. n.m. 0 0 0 0 G H 17.1 13.6 -1.6 7.7 -11.6 -19.1 -51.1 -201.3 n.m. n.m. -47.6 0 0 0 0 H I 21.6 26.3 16.3 16.0 3.1 4.8 3.2 2.0 3.5 6.1 8.2 4 4 6 6 I J 27.9 38.4 43.4 30.6 17.4 9.8 19.9 16.7 10.7 17.6 20.9 12 12 16 16 J K 15.6 11.6 30.3 19.2 20.3 17.6 17.5 16.3 14.0 13.5 17.0 9 9 13 13 K L 18.1 23.4 15.2 2.0 8.9 22.3 12.7 8.2 1.3 9.3 10.9 6 6 8 8 L

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

Y20 Score I.E. B-I-I

G-T-D Score

A 11.87 40.65 36.75 15.19 11.58 12.94 9.48 9.83 8.01 20.49 2 1 2 1 A B 19.42 9.50 9.55 5.58 5.91 5.06 5.01 4.96 5.96 4.86 0 0 0 0 B C 18.72 9.61 23.56 9.39 5.62 12.63 13.73 13.08 16.92 34.29 3 2 3 2 C D 22.92 51.48 56.79 54.50 62.84 96.65 83.41 54.31 167.69 215.43 17 12 17 12 D E 41.05 180.54 292.77 245.38 204.69 279.08 268.51 251.75 191.52 363.28 24 20 24 20 E F 28.79 145.17 189.35 82.84 157.10 208.16 249.33 175.19 161.03 263.99 21 15 21 15 F G 11.71 6.01 5.21 5.16 5.11 5.06 5.01 4.96 4.98 5.86 0 0 0 0 G H 14.16 9.49 5.55 6.61 5.11 5.06 5.01 4.96 5.68 4.86 0 0 0 0 H I 28.47 77.09 31.92 34.87 13.99 6.31 5.01 4.96 5.78 8.70 1 0 1 0 I J 65.02 181.32 301.88 249.48 118.95 50.02 164.09 137.64 64.15 94.56 8 5 8 5 J K 12.31 8.21 79.20 69.76 102.87 91.12 92.68 81.66 49.75 52.72 4 3 4 3 K L 20.12 50.41 21.51 8.98 9.56 58.26 38.83 15.65 7.12 21.73 2 1 2 1 L

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Industry 52 S�� M�� Year 20 (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

Y20 Score I.E. B-I-I

G-T-D Score

A B+ A A B B+ B+ B B B– B+ 16 16 16 16 A B B+ A– A– B+ A– C– C– C– C– C– 0 1 0 1 B C B+ A– B C C– C+ B B B+ A 20 19 20 19 C D B+ B A– A– A A+ A+ A+ A+ A+ 24 20 24 20 D E A– A– A B+ B+ A A+ A+ A A 20 19 20 19 E F B+ A– A A– A+ A+ A+ A+ A+ A+ 24 20 24 20 F G C+ C C– C– C– C– C– C– C– C– 0 1 0 1 G H B+ B– C– C C– C– C– C– C– C– 0 1 0 1 H I A– A A– A A– C C C– C C+ 8 8 8 8 I J A A+ A+ A+ A+ A+ A+ A+ A+ A+ 24 20 24 20 J K B C B C+ B+ A– A A A A+ 24 20 24 20 K L A– A B– C– C B+ A A+ A+ A+ 24 20 24 20 L

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)

Y18-Y20 Average I.E. B-I-I

Y20 Score I.E. B-I-I

G-T-D Score

A 65 65 68 71 63 69 80 67 62 62 64 16 12 16 13 A B 64 53 52 49 52 54 60 56 56 54 55 14 11 14 11 B C 64 53 60 64 68 74 77 73 72 72 72 18 14 18 14 C D 79 82 75 79 84 84 84 83 89 85 86 21 17 21 17 D E 79 97 100 100 98 100 100 100 100 100 100 24 20 24 20 E F 78 100 98 97 100 100 100 100 100 100 100 24 20 24 20 F G 58 67 58 62 65 64 61 80 89 95 88 22 19 21 18 G H 64 53 45 51 44 39 44 41 41 41 41 10 8 10 8 H I 65 66 65 61 85 93 80 80 76 70 75 18 14 19 15 I J 81 85 100 96 89 88 91 88 88 89 88 21 18 21 18 J K 67 62 85 86 91 93 86 86 81 78 82 20 16 20 16 K L 73 74 62 70 77 73 76 66 71 67 68 17 13 17 14 L

High Average Low Total Dollars ($000s)

High Average Low Per Unit Sold ($/unit)

Industry 52 Cash Outlays for Corporate Social Responsibility and Citizenship

High Average Low

Image Rating Points Generated from

CSRC Expenditures

Year 11 17,272 6,379 0 1.90 0.73 0.00 5 2 0 Year 12 20,935 6,865 0 1.77 0.67 0.00 8 3 0 Year 13 18,200 8,696 0 2.15 0.92 0.00 11 5 0 Year 14 22,842 6,009 0 2.96 0.59 0.00 13 7 0 Year 15 11,250 5,892 0 1.63 0.56 0.00 16 8 0 Year 16 18,501 5,447 0 2.58 0.48 0.00 17 9 0 Year 17 15,557 5,133 0 1.14 0.39 0.00 16 9 0 Year 18 41,047 9,717 600 2.37 0.66 0.06 17 9 0 Year 19 31,023 10,819 2,600 1.43 0.69 0.21 19 10 1 Year 20 39,631 11,774 2,250 1.69 0.65 0.20 19 10 2

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 All Brands Shoes EndurNCE Y15 F - Tread Threads Dynasty Shoes Y16 BeRite Shoes EndurNCE Y17 EndurNCE Dynasty Shoes Y18 Genesis Shoes Dynasty Shoes Y19 Dynasty Shoes Genesis Shoes Y20 Dynasty Shoes EndurNCE

Corporate Responsibility Award for Exemplary Corporate Citizenship

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Industry 52 B�� P�� A�� Year 20

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 20 Forecast

Year 20 Actual

Percent Variance

Revenues (within ± 5%)

Year 20 Forecast

Year 20 Actual

Percent Variance

EPS (within ± 5% or ± 10¢)

Year 20 Forecast

Year 20 Actual

Point Variance

Image Rating (within ± 4 points) Year 20 Bull's Eye

Award

Cumu- lative

Awards A 877,784 975,659 +11.2 % 2.44 3.55 +45.4 % 61 62 +1 pts. No 1 A B 900,218 536,885 -40.4 % 2.92 -3.66 -225.3 % 62 54 -8 pts. No 0 B C 796,749 801,655 +0.6 % 4.46 4.46 -0.1 % 72 72 0 pts. Yes 1 C D 1,408,118 1,400,871 -0.5 % 11.61 11.61 0.0 % 86 85 -1 pts. Yes 1 D E 2,271,001 2,379,212 +4.8 % 15.85 17.72 +11.8 % 100 100 0 pts. No 1 E F 2,015,886 2,201,045 +9.2 % 11.11 14.24 +28.1 % 100 100 0 pts. No 2 F G 1,111,085 1,117,093 +0.5 % -30.72 -29.76 -3.1 % 94 95 +1 pts. Yes 1 G H 0 338,145 0.0 % 0.00 -10.16 0.0 % 0 41 0 pts. No 0 H I 872,795 765,466 -12.3 % 3.29 1.55 -53.0 % 74 70 -4 pts. No 0 I J 1,044,500 1,155,113 +10.6 % 4.92 7.41 +50.5 % 88 89 +1 pts. No 2 J K 1,310,831 1,386,293 +5.8 % 4.97 5.18 +4.2 % 75 78 +3 pts. No 0 K L 729,200 585,345 -19.7 % 5.39 3.11 -42.3 % 71 67 -4 pts. No 0 L

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

Industry 52 Variance

Largest Average Smallest

Company L Variance

Year 11 +8.6 % -3.3 %

-12.2 %

-8.3 %

Year 12 +23.8 % +1.8 % -11.0 %

-7.2 %

Year 13 +12.4 % -11.7 % -53.4 %

+4.2 %

Year 14 +46.3 % -11.9 % -40.0 %

+46.3 %

Year 15 +40.6 % -11.1 %

-122.7 %

+15.5 %

Year 16 +21.1 %

-8.8 % -79.7 %

-17.1 %

Year 17 +4.8 %

-16.9 % -66.6 %

-7.0 %

Year 18 +6.9 %

-42.9 % -271.4 %

-32.2 %

Year 19 +13.4 % -17.8 % -76.2 %

-33.3 %

Year 20 +21.9 %

-6.4 % -92.9 %

-22.5 %

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 65 +14 79 -13 66 -17 49 -1 48 +4 52 -8 44 -5 39 -5 34 +12 46 1 A B 72 -15 57 -7 50 -14 36 +5 41 -27 14 +1 15 -1 14 0 14 -1 13 0 B C 71 -14 57 +2 59 -27 32 -9 23 +22 45 +4 49 -5 44 +2 46 +8 54 0 C D 75 +6 81 -7 74 -1 73 +4 77 +5 82 -6 76 -10 66 +23 89 0 89 1 D E 94 +13 107 +1 108 -4 104 -3 101 +4 105 -2 103 -2 101 -7 94 +8 102 0 E F 84 +20 104 -5 99 -24 75 +26 101 +1 102 +1 103 -11 92 -4 88 +8 96 2 F G 38 -6 32 -16 16 +4 20 -4 16 0 16 -1 15 +4 19 +1 20 +1 21 1 G H 68 -23 45 -32 13 +15 28 -16 12 -2 10 +1 11 -1 10 +1 11 -1 10 1 H I 84 +4 88 -24 64 0 64 -19 45 -12 33 -6 27 -6 21 +5 26 +5 31 0 I J 108 -1 107 +3 110 -2 108 -16 92 -27 65 +26 91 -9 82 -19 63 +9 72 1 J K 63 -26 37 +43 80 -16 64 +20 84 -5 79 -3 76 -5 71 -8 63 -2 61 1 K L 77 +7 84 -34 50 -28 22 +15 37 +35 72 -13 59 -9 50 -9 41 +9 50 1 L

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 overall score 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 52 I�� O�� Year 20

Materials Prices

Price Adjustments

Materials Usage Facilities Utilization

Base Prices of Materials ($ per pair)

Materials Prices in Year 20 ($ per pair)

$6.00 -0.11

+0.07 $5.96

Standard $12.00 +0.86 +0.14

$13.00

Superior High industry-wide superior materials usage (43.6%) lead to superior materials prices that were 7.2% above the base and standard materials prices that were 1.8% below the base. Industry-wide utilization of production capability was above 110% and resulted in materials price increases of 1.2%.

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

40% 109.6%

91,849 48,195 48,864 48,864

2 0

6,204 9,422 6,203

Europe Africa

47% 117.7%

64,027 42,940 42,876 42,873

1 2

6,204 6,931 6,203

Asia Pacific

46% 105.9%

77,630 46,631 46,548 46,549

3 0

7,416 7,686 7,333

Latin America

43% 115.2%

76,673 47,611 48,276 48,275

3 1

7,416 6,844 6,703

Average or Total

44% 111.2%

310,179 185,377 186,564 186,561

27,240 30,883 26,442

⇦ % usage down 2.8 points from Year 19. ⇦ % usage down 2.4 points from Year 19.

⇦ 66.3% higher than Year 20 demand.

⇦ From page 4 of FIR for Year 19. ⇦ 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 19. ⇦ Private-label pairs offered was higher than

actual private-label demand by 11.8%.

Notes

Demand Forecast

Branded Demand (internet + wholesale)

Year 21 Year 22 Year 23

Private-Label Demand Year 21 Year 22 Year 23

North America

50,290 52,300 54,386

6,576 6,972 7,392

Europe Africa 44,045 45,801 47,635

6,576 6,972 7,392

Asia Pacific 48,749 51,675 54,770

7,860 8,328 8,832

Latin America

50,940 53,998 57,232

7,860 8,328 8,832

Global Total

194,024 203,774 214,023

28,872 30,600 32,448

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 21 Inventory Potential Y21 Production (with OT)

Potential Global Supply

123,618 241,800 365,418

Potential Footwear Suppy in Year 21 Branded Demand Forecast Private-Label Demand Forecast Expected Global Demand

194,024 28,872

222,896

Expected Footwear Demand in Year 21 Potential global supply (at max OT) in the upcoming year is 63.9% 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 20 Facility Space (000s of pairs available for prod. equipmernt)

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

Construction of New Space (initiated in Y20 and available in Y21)

Total Space

Available in Y21

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

Year 20 Production Equipment (000s of pairs available for production)

A 5,000 4,000 8,000 4,000 0 0 0 0 21,000 A 0 2,250 6,250 2,000 10,500 A B 10,000 4,000 10,000 4,000 0 0 0 0 28,000 B 1,250 500 1,000 1,000 3,750 B C 5,000 0 6,000 7,000 0 0 0 0 18,000 C 0 0 3,000 7,000 10,000 C D 9,000 2,000 6,000 3,000 0 0 0 0 20,000 D 9,000 2,000 6,000 3,000 20,000 D E 9,000 9,000 9,000 9,000 1,000 1,000 1,000 1,000 40,000 E 9,000 9,000 9,000 9,000 36,000 E F 5,000 8,000 9,000 11,000 0 0 0 0 33,000 F 0 8,000 9,000 11,000 28,000 F G 6,000 0 7,000 6,000 0 0 0 0 19,000 G 5,000 0 6,000 5,000 16,000 G H 5,000 0 6,000 4,000 0 0 0 0 15,000 H 4,500 0 5,000 4,000 13,500 H I 5,000 2,000 6,000 5,000 0 0 0 0 18,000 I 3,000 2,000 3,000 3,000 11,000 I J 6,000 4,000 7,000 6,000 0 0 0 0 23,000 J 0 3,000 6,000 6,000 15,000 J K 5,000 0 11,000 10,000 0 0 0 0 26,000 K 5,000 0 11,000 10,000 26,000 K L 5,000 2,000 6,000 2,000 0 0 0 0 15,000 L 3,500 2,000 4,250 2,000 11,750 L

75,000 35,000 91,000 71,000 1,000 1,000 1,000 1,000 276,000 40,250 28,750 69,500 63,000 201,500

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Industry 52 F�� P�� S�� Year 20

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 427,804 547,855 0 975,659 391,280 102,212 297,333 28,915 155,919 18,569 41,205 96,145 A B 223,518 313,367 0 536,885 194,560 72,079 221,190 41,518 7,538 116,478 0 -109,940 B C 333,595 432,928 35,132 801,655 388,989 78,509 202,432 23,354 108,371 7,742 30,189 70,440 C D 573,200 658,329 169,342 1,400,871 576,227 137,288 348,018 35,220 304,118 -1,652 85,310 199,056 D E 579,942 1,324,276 272,631 2,379,212 1,173,673 195,208 536,588 51,220 422,523 10,235 122,450 285,715 E F 579,365 1,212,555 224,819 2,201,045 1,073,050 186,738 450,887 46,422 443,948 6,715 131,170 306,063 F G 231,578 824,666 0 1,117,093 843,297 102,246 488,819 29,474 -346,743 248,492 0 -595,235 G H 109,112 229,033 0 338,145 142,938 66,882 175,234 23,220 -70,129 183,950 0 -254,079 H I 260,258 382,847 58,385 765,466 331,272 91,705 234,220 23,221 85,048 29,726 16,597 38,725 I J 353,772 585,440 173,182 1,155,113 493,528 95,322 336,085 33,844 196,334 -138 58,942 137,530 J K 386,634 852,559 147,100 1,386,293 617,173 128,631 394,040 39,470 206,979 735 58,780 137,152 K L 176,887 377,997 0 585,345 244,548 70,076 160,605 23,570 86,546 -579 26,138 60,987 L

352,972 645,154 90,049 1,136,899 539,211 110,575 320,454 33,287 133,371 51,689 47,565 31,047

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 53,500 607,905 429,556 1,037,461 275,655 0 275,655 695,606 3,930 62,270 761,806 A B 0 541,819 418,535 960,354 674,569 225,000 899,569 145,875 24,850 -109,940 60,785 B C 116,646 318,515 353,770 672,285 52,412 75,038 127,450 537,139 -62,744 70,440 544,835 C D 9,598 270,971 540,602 811,573 44,417 0 44,417 898,235 -273,540 142,461 767,156 D E 111,960 647,968 1,034,051 1,682,019 340,135 175,000 515,135 1,262,039 -359,907 264,752 1,166,884 E F 416,796 1,109,783 679,220 1,789,003 104,027 150,000 254,027 1,477,641 -240,128 297,463 1,534,976 F G 0 301,544 437,368 738,912 2,337,955 0 2,337,955 -1,003,808 0 -595,235 -1,599,043 G H 0 1,072,682 304,407 1,377,089 1,829,514 0 1,829,514 -198,346 0 -254,079 -452,425 H I 5,517 447,211 367,240 814,451 160,568 0 160,568 615,158 0 38,725 653,883 I J 168,993 444,526 453,220 897,746 47,170 0 47,170 713,046 0 137,530 850,576 J K 42,668 363,295 664,208 1,027,503 36,139 0 36,139 1,046,852 -166,140 110,652 991,364 K L 49,798 433,938 336,752 770,690 36,850 45,000 81,850 627,853 0 60,987 688,840 L

81,290 546,680 501,577 1,048,257 494,951 55,837 550,787 568,108 -89,473 18,836 497,470

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 59.9% 16.0% 9.9% 1.25 33,875 35.2% 8.40 0.27 1.79 High 2.21 395 days 27,100 A B 63.8% 1.4% -20.5% 0.00 0 0.0% 0.06 0.94 0.00 N/A 0.80 849 days 30,000 B C 51.5% 13.5% 8.8% 0.00 0 0.0% 14.00 0.19 4.16 Low 6.08 83 days 15,811 C D 58.9% 21.7% 14.2% 3.30 56,595 28.4% 1,000.00 0.05 1,000.00 Low 6.10 45 days 17,150 D E 50.7% 17.8% 12.0% 1.30 20,963 7.3% 41.28 0.31 16.31 Low 1.91 59 days 16,125 E F 51.2% 20.2% 13.9% 0.40 8,600 2.8% 66.11 0.14 15.49 Low 10.67 156 days 21,500 F G 24.5% -31.0% -53.3% 0.00 0 0.0% -1.40 3.16 0.00 N/A 0.13 40 days 20,000 G H 57.7% -20.7% -75.1% 0.00 0 0.0% -0.38 1.33 0.00 N/A 0.59 2,578 days 25,000 H I 56.7% 11.1% 5.1% 0.00 0 0.0% 2.86 0.20 0.28 High 2.79 526 days 24,950 I J 57.3% 17.0% 11.9% 0.00 0 0.0% 1,000.00 0.05 1,000.00 Low 9.42 98 days 18,550 J K 55.5% 14.9% 9.9% 1.00 26,500 19.3% 281.60 0.04 10.04 Low 10.05 50 days 26,500 K L 58.2% 14.8% 10.4% 0.00 0 0.0% 1,000.00 0.11 1,000.00 Low 11.78 481 days 19,600 L

52.6% 11.7% 2.7% 0.60 12,211 7.8% 45.84 0.57 4.01 5.21 447 days 21,857

11/29/22, 2:41 AM BSG Decisions & Reports

https://www.bsg-online.com/users/program/v3/fir/page2 7/9

Industry 52 P�� B�� Year 20

Production Benchmarks

North America Low Average High Industry 52 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)

38,547 4,386

6.38 65,621

0% 0.00

45,996 21.25 0.8%

2.83

68%

50,560 5,505

9.71 72,180

44% 2.37

105,552 28.06 3.8%

4.36

100%

102,161 6,672 18.02

103,380 100% 5.00

295,860 42.45 7.0%

6.87

93%

38,547 4,871

8.40 65,621

52% 2.30

73,346 26.10 4.2%

2.97

Europe-Africa Low Average High Industry 52 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)

50%

22,311 3,834

6.07 39,373

18% 0.00

14,640 24.15 1.7%

2.65

90%

25,301 4,081

6.64 39,766

46% 2.47

75,532 26.53 3.3%

3.66

100%

27,942 4,300

7.25 41,338

74% 3.80

241,320 28.87 5.1%

5.93

100%

22,780 4,054

6.07 39,373

52% 2.30

32,640 24.15 4.4%

2.78

Asia-Pacific Low Average High Industry 52 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)

14,143 3,217

3.71 27,343

0% 0.00

35,516 17.16 0.8%

2.43

73%

19,506 3,887

5.07 30,891

46% 2.61

152,854 24.87 3.9%

3.37

100%

61,591 4,565 13.49

63,631 100% 5.00

378,944 37.86 10.4%

4.70

94%

14,152 3,909

3.86 27,343

52% 2.30

77,533 20.89 4.9%

2.43

Latin America Low Average High Industry 52 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)

13,124 3,582

3.72 27,343

0% 0.00

21,240 17.61 0.8%

2.11

81%

19,661 3,949

5.03 31,039

44% 2.73

133,188 24.28 3.5%

3.17

100%

63,118 4,781 13.20

65,281 100% 5.00

291,862 37.58 6.1%

5.25

100%

13,635 3,949

3.72 27,343

52% 1.60

26,160 21.22 5.2%

2.50

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.

11/29/22, 2:41 AM BSG Decisions & Reports

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

Industry 52 P�� B�� Year 20 (concluded)

Branded Operating Benchmarks

North America Low Average High Industry 52 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)

1.88 22.42 13.80

-25.36 -25.0%

13.38 -18.65 -33.3%

6.00 29.54 32.89 12.42 14.7%

19.38 2.77 4.2%

11.43 42.95 71.79 28.56 33.6%

26.78 15.39 22.0%

3.57 27.03 16.85 22.77 27.1%

17.59 2.45 4.4%

Europe-Africa Low Average High Industry 52 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)

3.60 25.33

9.59 -23.17 -25.9%

10.46 -10.38 -19.0%

7.66 30.57 31.50 12.98 14.7%

17.31 3.84 6.2%

12.97 46.91 60.26 27.04 31.6%

24.52 11.03

16.5%

6.54 25.33 17.43 27.04 31.6%

17.81 4.73 8.6%

Asia-Pacific Low Average High Industry 52 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)

2.24 18.38 16.18

-46.09 -55.5%

10.86 -26.56 -63.1%

5.17 26.42 33.56

8.81 10.5%

17.98 1.86 1.7%

8.04 38.15 81.60 28.73 32.0%

25.67 11.01

21.2%

2.79 21.87 18.17 21.80 27.5%

18.47 3.98 7.5%

Latin America Low Average High Industry 52 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)

2.17 18.98 13.73

-30.03 -31.9%

10.80 -22.35 -53.4%

5.65 26.11 34.10 15.82 17.9%

18.32 6.11

8.9%

11.27 36.32 79.47 33.37 35.1%

22.93 18.38 28.8%

5.83 22.53 17.17 30.13 35.1%

17.63 7.95

14.4%

Private-Label Operating Benchmarks

Low Average High Industry 52 Company

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

26.17 +4.61

30.59 +10.27

33.61 +16.50

0.00 0.00

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

27.69 +4.20

31.10 +10.22

38.44 +15.23

0.00 0.00

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

21.59 +4.78

27.11 +11.21

31.83 +18.06

0.00 0.00

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

23.78 +8.33

27.81 +12.47

31.72 +15.93

0.00 0.00

11/29/22, 2:41 AM BSG Decisions & Reports

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

Industry 52 C�� E�� I�� T�� Year 20

Celebrity Endorsements

Celebrity Year 21

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 All Brands Shoes 6 18,999 (A) 18,751 (E) 16,666 (D) Kimmie Jimmel All Brands Shoes 8 25,999 (A) 19,999 (D) 19,001 (J) Bud Birkenstock All Brands Shoes 7 25,998 (A) 18,753 (E) 18,101 (J) Jose Montana Klassy Feet 9 20,000 (K) 18,754 (E) 17,999 (A) Samuelle Jackson F - Tread Threads 4 18,357 (F) 16,555 (D) 16,502 (J) Bronko Mars Jack In The Box 4 21,010 (J) 18,501 (F) 17,000 (K) Steff Caraway Jack In The Box 4 21,010 (J) 13,000 (K) 10,305 (F) Jay XYZ Jack In The Box 4 21,010 (J) 13,000 (K) 10,305 (F) Nunchuck Norris C Company 4 22,000 (C) 21,010 (J) 17,555 (F) Roger Federation F - Tread Threads 6 19,757 (F) 16,402 (J) 16,109 (A) Nick Shavan Klassy Feet 3 21,010 (J) 17,500 (K) 500 (L) Anderson Blooper Jack In The Box 5 16,502 (J) 15,555 (D) 10,250 (E) Mic Jagermeister F - Tread Threads 3 21,010 (J) 19,555 (F) 500 (L) Jim Hardball Dynasty Shoes 6 16,502 (J) 15,555 (D) 12,209 (A) LaBron Game F - Tread Threads 3 21,010 (J) 16,557 (F) 500 (L) Flint Westwood EndurNCE 5 16,502 (J) 15,555 (D) 10,250 (E)

Co. N.A. E-A A-P L.A. A 255 235 195 170 B 0 0 0 0 C 90 80 100 65 D 65 45 70 70 E 50 75 60 70 F 295 350 285 360 G 0 0 0 0 H 0 0 0 0 I 0 0 0 0 J 275 255 320 295 K 130 125 130 150 L 0 0 0 0

Avg. 97 97 97 98

Year 21 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★

5.0★

6.0★

7.0★

8.0★

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★

5.0★

6.0★

7.0★

8.0★

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

4.0★

5.0★

6.0★

7.0★

8.0★

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★

5.0★

6.0★

7.0★

8.0★

Year

P ric

S /Q

R at

in g