PUMA SE — Call Transcript 2026

Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the Q4 and full year 2025 earnings call of PUMA SE. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may press star, followed by one on your touch-tone telephone. Please press the star key followed by zero for operator assistance. I would now like to turn the conference over to Manuel Bösing, Director of Investor Relations. Please go ahead. Thank you very much, Maura. Hello, everyone, welcome to the PUMA conference call for the Fourth Quarter and Full Year 2025. Joining me today are our CEO, Arthur Hoeld, and our CFO, Markus Neubrand. Before we start, please take note of the cautionary statement regarding forward-looking information. Arthur and Markus will guide you through today's presentation, covering our business recap, financial update, and outlook for the year ahead. After the presentation, we will open the floor for your questions. For the Q&A session, we kindly ask that you limit your initial questions to two per person. This will allow as many participants as possible the opportunity to take part in the discussion. We will begin with a short video. Afterwards, Arthur will take over. With that, please enjoy the video. When you've been in this game for over 75 years, it's fair to say we have what it takes. The team at PUMA, we killing it right now. Y'all did that? To win and celebrate timeless triumphs, to reshape the future, push performances beyond boundaries, winning medals and breaking records in style. Creatures of my dreams, rise up and dance with me. The truth is, we've also learned that victory never, ever comes easy. Goals don't live in our comfort zone, and icons aren't just created overnight. Right now, we're facing our biggest challenge yet. To reclaim our position on the court, on the track, the green, the pitch, the floor, the screens, and the streets all around the world. This meant we had to change and turn things around in 2025. We had to step up our game, raise our own bar, and take that leap to question what works and change what doesn't. This is how we sharpen our focus, rethink collections, reveal how we bring our brand and products into the hearts and minds of our customers- Damn! Reset what we bring to the table while we embrace our history, our innovations, and our DNA. Let's get to it. Let's rebuild a business that's relevant in another 75 years. Let's be our best team, partner with the people we know, trust the process, and become part of a culture to be proud of again. It is his first goal for Portugal. We know we have what it takes to get back where we belong as one global sports brand. Well, the winner has been quite impressive. Well done. Terrific. Just remember... This is PUMA. Good afternoon, welcome from my side here, from Arthur and Markus as well. I think that video summarized perfectly what a great brand we are, what a great potential we have, it certainly also highlighted some of the challenges that we have started to take last year. Allow me to take you on that journey and the progress that we have made over the last few months. Starting, of course, when we talk about PUMA, we want to start with sports, the foundation that we build upon. Some of the highlights last year were definitely Mondo Duplantis taking the World Title and at the same time, the World Record in Pole Vaulting at the Tokyo World Championships. That also made him the fourth time the Men's Athlete of the Year. Amanal Petros, featuring the Fast-R 3, was winning the silver medal in the marathon race, and then subsequent to that in Valencia, set the third Fastest European time ever. We are very happy that to-date, we have 10 teams qualified for the FIFA World Cup, and that gives us strong presence at one of the most prolific sporting events later this year. HYROX key partnership that we have extended last year sees increasing popularity, building a community way beyond what we have imagined beforehand, and we have key athletes who are breaking world records almost on a weekly basis. In Formula 1, last year, we had two out of five teams in the top Constructor Championships. As you've seen from our recent announcements, we're very proud to add McLaren, the current champion in the team and individual championships, to our roster for 2026. Last but not least, with Dennis Schröder and the German team winning the Euro Champs, at the same time, we are looking forward to Tyrese Haliburton coming back in the new season. There's a lot of positivity, a lot of great achievements that PUMA as a brand has seen in the year 2025. We also do see our foundation for future success in exactly those areas. First and foremost, providing innovative technologies for our athletes, for our teams, for our high-performing sports people. Whether it's a pair of technologies like CLOUDSPUN or dryCELL, or the best technology in the running world out there with NITRO. We're extremely proud of the developments and of the success stories our teams have achieved in recent months. Second to that, our brand will be built on community platforms, connecting with consumers around the world, connecting in new, different, and engaging ways to really set the tone and set the standard where PUMA will be at the forefront of conversations again. Of course, it's also about global reach. A brand that is globally recognized, but globally also connects on the highest level with partnerships that have been either long-lasting or will be added freshly and newly to excite our audience out there. That all will be built on 77 years of history, of history that was made out of great products, great athletes, and great partnerships that have built PUMA into one of the greatest brands on Earth to date. However, we also recognized last year that we have to start to do things differently in our organization and in our brands. We have called out a three-year transformation journey that was clearly starting middle of last year with the so-called Reset. Let me give you a brief update, what we have achieved and what we've done in those last five to six months since we called this out. 2025 was not just a year of Reset. We have clearly communicated and acted upon key measures and key activities that will take PUMA into a different area and allow us to really fulfill our growth ambitions in the years to come. From a distribution perspective, we have talked about cleaning up un undesirable wholesale business, reducing our overstock with wholesale partners, at the same time, reducing our discounts on our own channels, and I come to talk a little bit more in detail about that one. From a cash perspective, we have become a much more prolific organization in terms of managing our cash situation. We have definitely reduced our PO placements in order to avoid a further oversupply, for example, for our 2026 business. At the same time, we have also Reset our OpEx operations. We have, for example, significantly reduced our range size and our complexity, and also committed to working on our operational inefficiencies as an organization and as a company. When I talk about right-sizing measures across our business, I wanted to give you some details, a bit more flavor, what that meant for us. In the S, for example, when it comes to undesirable wholesale business, we will decrease our business by the double digits over the next couple of years until the end of this year. We have already started to reduce our discounting policy in our own e-commerce channels as well in our retail channels. This had already a significant impact, not just on our top line, but more importantly, that people and consumers start to see us again as a serious brand and as a brand that commands value. Last but not least, as I said, both our in-line and non-in-line product range will decrease double-digit. The season where that will be coming into fruition will be the spring, summer 2027 season. A lot of measures that we talked about that are now already in place that will show up in the market in the seasons to come. We also have committed to focusing on streamlining our organization. The adjustments we've promised was about 20% of our white-collar positions reduced between 2025 and 2026. 500 of those positions have been reduced in the first half of 2025 within the so-called nextlevel program. One-third of the additional 900 positions we have reduced in the second half of last year. That leaves another 2/3 of those 900 positions that we're actively engaging with at this point in time. We are committed, and we're executing to become a better, more streamlined, but also more efficient organization going forward. An organization is, of course, built on strong leadership, senior leadership that has the capabilities to transform this organization. What you see here on this chart is the already communicated new addition of Andreas Hubert as the Chief Operating Officer, as well as the extended responsibilities for Maria Valdes. Her role was transformed from being in charge in terms of products only, to now adding a responsibility for go-to-market and brand marketing to fulfill a new operating model that we, as an organization, will be carrying in the future. You also see a significant amount of other changes that I will not go into detail today. They've also been announced over the last three to six months, basically. Allow me to briefly touch on that new brand and operating model. What is new, that we're basically bringing all the elements together that allow us to develop successful and promising and cut-through marketing stories and concepts in the future. That means brand marketing, product creation, and the go-to-market teams are all united under one team and will in the future, develop concepts and propositions right from the get-go, and they then take them also fully through into the sales and into the conversations with our customers and with our DTC colleagues. Under Maria's leadership, we have also restructured our categories with a full ownership proposition moving forward. We've also clearly called out what we say, the four priority, the four DNA categories for PUMA in the future. They will be Football, Rrunning, and Training, now as two separated categories that previously were homed under one leadership, and a focus on Sportstyle, which is the Select and the Prime business, which has been split from the core business. Clearly a commitment to growth and to growth across a global scale with a dedicated viewpoint on how we will show up as a brand in the future. Also, at the same time, we have developed a new go-to-market calendar that will come fully into provision for the spring, summer 2028 season. That means we're gonna have a more focused approach in terms of alignment internally and improved selling readiness, but also higher efficiencies when as a brand we go to market. The second significant change that we are undergoing at the moment is under the leadership of Matthias as our Chief Commercial Officer. We are going to transform our home region, Europe, from an organization that had a very small regional layer with seven different competencies and different cluster centers, which lets a very decentralized structure, duplicate a lot of efforts, and ultimately also a pretty inconsistent brand activation. In the future, as of later this year, we're gonna increase our regional layer, our European layer. We're gonna have three more streamlined clusters across central, north, and south, that also will mean in the future, we're gonna have more consistency, stronger efficiencies. There will be a regional ownership of the key growth levers and also allowing us for faster and more aligned decision-making. These were some of the methods we talked about last year and the execution that was started, but of course, will transition into 2026. With that, I'll hand over to Markus to talk you through the results. Thank you, Arthur, and hello to everybody from my side. Following Arthur's remarks, I will now walk you through the key financial metrics and explain how the Reset measures he outlined impacted PUMA's Q4 and full year results. On the top line, we saw a substantial currency-adjusted sales decline of nearly -21% in Q4, leading to a sales decline in full year 2025 of around 8%. Notable reduction in sales of around 8% was primarily attributable to our Reset measures initiated during the second half of 2025. Our Reset measures can be split up mainly into three buckets. The largest impact came from cancellations of undesirable business with wholesale partners in the Mass Merchant Space, followed by Inventory Takebacks and lower DTC Promotions to improve brand perception. From a regional perspective, the Reset was particularly pronounced in Americas, especially in the U.S., EMEA, and China. Now, let's have a look at the sales breakdown by channel. Wholesale saw a decline of around 28% in Q4 due to significant takebacks to clear excess inventory in the channel, along with immediate actions to reduce exposure to mass merchants in North America and to phase out undesirable business in Latin America, EMEA, and Asia Pacific. In full year 2025, wholesale decreased by 13%. Direct-to-Consumer sales dropped 8% in Q4, with owned and operated stores down about 1% and e-commerce falling by 20% due to fewer promotions aimed at strengthening PUMA's brand. For the full year, DTC increased 3%, supported by both brick-and-mortar and e-commerce. Correspondingly, the Q4 DTC share rose substantially to 41.1% from 35.5% in Q4 2024. For the full year, the DTC share increased to 32.4%. Moving on to the sales breakdown by regions. EMEA sales decreased by around 24% in Q4 and -7% in full year 2025. Lower sales were driven by a weaker wholesale performance due to the reduction of undesired business and inventory takebacks, as well as lower DTC business on the back of reduced promotions. In the Americas region, sales fell by 22% in the fourth quarter and by -10% on a full year basis. The decline was mainly attributable to North America, where sales decreased by slightly more than 33% in Q4 and minus 19% in the full year as a result of the distribution cleanup in the mass merchant business in the U.S. Sales in Asia Pacific dropped by nearly 13% in Q4 and by 7% in full year 2025. This was mainly driven by a decline in the Greater China wholesale business, which was partially offset by robust growth in the direct-to-consumer channel. Overall, Greater China sales declined by almost 20% in Q4. From a product division perspective, footwear sales in Q4 decreased by around 25% due to a broad decline across most categories. Within footwear, we saw growth in the Sportstyle Prime and Select segment, driven by the Speedcat family, with particularly strong performance in the Asia Pacific region in the past quarter. However, the Training category remained resilient and delivered healthy growth. Despite an overall decrease in the Running category as a result of the distribution cleanup, performance running showed strong growth, driven by the success of the Velocity NITRO 4. Our Apparel sales fell 14% in Q4, reflecting widespread declines across categories. This was partially offset by growth in Training, with continued strong momentum in HYROX. Accessories decreased by 18% in the past quarter, mainly due to golf. On a full year basis, all product divisions declined in the high single digits. Moving on to the operating performance in the fourth quarter. Gross profit margin was down -7.5 percentage points, and I will elaborate a bit more on that development in just a minute. Royalty and commission income was up 36%, mainly due to a transition from a business partnership to a licensing agreement structure with United Legwear. Operating expenses, excluding one-time effects, fell by roughly 8% to EUR 887 million during the quarter. This decrease was driven by positive results from the cost efficiency program and reduced expenses in the DTC channel, which were a consequence of lower sales compared to the same quarter last year. Driven by lower sales and lower gross profit, Adjusted EBIT came in at -EUR 229 million, down EUR 315 million versus Q4 2024. One-time effects amounted to around EUR 79 million, mainly related to the cost efficiency program and a goodwill impairment. Reported EBIT, including one-time effects, was around -EUR 308 million, and our loss from continued operations came at a -EUR 335 million. As indicated, let's take a closer look at the gross profit margin in Q4. First and foremost, the drop was primarily attributable to increased promotions in the wholesale channel and inventory reserves, resulting from the distribution cleanup, both as a result of the Reset measures we commenced in the second half of 2025. We saw headwinds from unfavorable currency effects from Turkish lira, the US dollar, and the Argentine peso, as well as a slightly negative regional mix. These negative effects were partially offset by a favorable channel and product mix and slightly lower freight costs. Lower sourcing costs, including duties, were a tailwind and therefore more than offsetting the negative impact from U.S. Tariffs. Looking at full year 2025 operating performance. The Gross Profit margin was down year-over-year by 260 basis points. I will dive deeper into the drivers in a minute. The Royalty and Commission Income increased by 4.4% to EUR 92 million. OpEx, excluding one-time effects, remained flat at around EUR 3.5 billion. I will give more color on that development shortly. Due to reduced sales and gross profit, Adjusted EBIT, excluding one-time effects, fell to minus EUR 166 million. We incurred one-time effects of around EUR 192 million. The reported EBIT came in at minus EUR 357 million. Loss from continuing operations came in at around minus EUR 644 million. In light of the net loss recorded in Fiscal Year 2025, and in order to maintain liquidity, the management board and the supervisory board of PUMA will propose at the 2026 Annual General Meeting that no dividend should be paid out for 2025. Turning to gross profit margin development in Fiscal Year 2025. Gross profit margin was down 260 basis points to 45%. On a full year level, increased promotions in the wholesale channel and inventory reserves represented the main headwind. We also saw negative currency effects impacting gross margin, mainly from Turkish lira, Argentinian peso, and Mexican peso. This was partially offset by a favorable channel and product mix, as well as reduced sourcing costs, including duties. We managed to limit the adverse impact of U.S. Tariffs to around EUR 30 million in 2025. In 2026, we expect a substantial improvement versus 2025, especially due to lower promotions, including inventory reserves and a favorable channel mix. Let's take a closer look at OpEx and one-time effects, respectively. OpEx, excluding one-time effects, was flat at around EUR 3.5 billion. Both channel mix as the DTC share, especially e-commerce, increased from 28.9% to 32.4%. Other OpEx offset lower marketing expenses, as well as savings from the efficiency program. Looking at marketing expenses, I want to highlight that we deliberately did not reduce marketing expenses any further than we did. In constant currency, it even remained stable year-over-year, as we see this cost position as an essential lever to elevate brand perception. The OpEx includes higher depreciation and amortization costs resulting from investments in DTC and infrastructure, along with approximately EUR 30 million in accounts receivable write-offs precluded an OpEx decline. Due to significantly lower group sales, the OpEx ratio increased by 640 basis points to 48.5%. We recorded material one-time effects, mainly related to the cost efficiency program and goodwill impairments. Personnel expenses accounted for EUR 102 million. These expenses are linked to our cost efficiency program, targeting a global headcount reduction. Impairments were EUR 63 million related to goodwill impairments in Japan, Canada, as well as in digital infrastructure. Closing unprofitable stores and other non-operating costs reached EUR 27 million. Looking forward, we anticipated significantly less one-time effects than what we saw last year. These costs will mainly focus on personal expenses. Overall, in 2026, we do not expect materially lower OpEx in absolute terms as we will continue to invest in our brand, as well as marketing, and expect stronger growth in DTC versus wholesale. Let me shed some more light on the drivers of the reported EBIT margin development. Reported EBIT margin was down from 6.5% in Fiscal Year 2024 to -4.9% in Fiscal Year 2025. The negative development in gross profit margin had an impact of -2.6 percentage points. The effect of royalty and commission income had a slightly positive impact of 20 basis points. While OpEx remained flat in absolute terms, the significant decrease in sales caused the OpEx ratio to rise by 6.4 percentage points. One-time effects of EUR 192 million also had a negative effect on margin of 2.6 percentage points. I would like to take a closer look at working capital. Inventories rose by 2% reported and 11% currency adjusted to around EUR 2.1 billion, partly driven by inventory takebacks from wholesale partners to clean up distribution. This was partially offset by deliberate decrease in purchase volume that we adopted as a strategy to moderate inventory expansion and prevent excess supply. Trade receivables decreased by around 27% to just over EUR 900 million, mainly due to a significant sales decrease in the fourth quarter. Trade payables decreased by 3% to EUR 1.3 billion, mainly reflecting reduced purchasing volume in the fourth quarter. Working capital overall exceeded EUR 1.5 billion, increasing by 20% against last year, and accounted for 21% of group sales, compared to about 15% in Fiscal Year 2024. Staying within working capital, let's take a closer look at the inventory development. Our inventory cleanup is slightly ahead of plan. We completed the majority of targeted takebacks, and you can see that Q4 inventory started to decline slightly against the level seen in Q3. The decline was mainly driven by active with inventory reduction measures, including clearance through factory outlets and selected wholesale partners, as well as a restatement effect related to United. We aim to further reduce inventories this year through our own factory outlets and wholesale partners, supported by targeted promotions and disciplined purchasing. We remain firmly committed to restoring inventories to normalized levels by the end of 2026. Let's move on to cash flow and a change in our cash position. We ended the year 2024 with around EUR 370 million of available cash. Due to negative earnings before taxes and increased net working capital, we ended Fiscal Year 2025 with a negative operating cash flow of around EUR 320 million. Investing cash flow through the CspEx of EUR 206 million, focused on digital infrastructure, investments in our DTC channels, and initiatives to strengthen long-term competitiveness. Our operating cash flow and in the investing cash flow summed up to a negative free cash flow of minus EUR 530 million. Financing cash flow amounted to around EUR 400 million and included around EUR 1 billion proceeds from additional financial liabilities to support the operating business and finance working capital. Overall, the cash flow development led to a decline in cash against last year, to EUR 290 million. In 2026, we expect our free cash flow to be positive. This brings us to net-debt development. The additional financial liabilities resulted in an increase in net debt to just over EUR 1 billion. End of 2025, we saw more financial headroom of EUR 1.5 billion, including a cash position of EUR 290 million, as shown before, and unutilized credit lines of around EUR 1.2 billion to invest in our strategic priorities. In February 2026, we were able to secure another private placement of EUR 100 million. With this additional financing instrument, we reduced the bridge facility from EUR 500 million to EUR 350 million and secured slightly more favorable financing conditions. The bridge facility was fully syndicated with our core banks. Given the currently elevated level of net debt, deleveraging is a clear priority, and we target to reduce net debt over the coming years. This concludes my remarks on the financials. I will now hand back to Arthur for the outlook for Fiscal Year 2026. Markus, thank you very much. Let's look forward into 2026, and I want to explain to you again why this year is a year of transition before company then will enter a growth period again. It's very important to realize that the recent measures will now need to be executed throughout the year of 2026. That means, for example, first and foremost, our ongoing efforts to clean up the marketplace and to be diligently working on the inventory liquidation will have a high priority for us. I've briefly talked about the new brand operating model, that between brand, product, and go-to-market, will fully show the effects in 2027, and to remain in sporting goods terms, that muscle needs to be trained throughout the 2026 calendar year. We are also, of course, working on our high share of budgets that are allocated to long-term commitments. Reshaping our marketing working budgets to be most effective from a consumer and from a brand proposition perspective, remains a high priority for us. The organizational changes that I alluded to will of course, need to be executed and then reshaped throughout the year of 2026. Last but not least, you've notified that at the end of January, we do have a new strategic investor, with ANTA joining us throughout the year. That, of course, will mean a further transition, a further elaboration on how we're gonna set ourselves up as a brand, as a business moving forward. What remains content, however, is that our commitment, our North Star, to become a top three sports brand, remains unchallenged. We are very clear that is our ambition to return to above industry growth rates as of 2027, and to return to healthy profits in the same manner. Being a sports brand also means that we have a very clear idea, a very clear outlook in terms of how we wanna be perceived and how we wanna do this. It's important to say we're gonna be one global sports brand. A brand has a global footprint, a brand that has a global priority, and a brand that activates itself globally within the same manner and tone. We play this with two different or two distinct pillars, of course, an elevated proposition when it comes to our heritage of the 77 years of the archive, the great stories that we have achieved over the many decades in the sporting goods industry. At the same time, high attention to our innovations, to driving performance with athletes and teams alike across the globe, and making sure that PUMA is going to be seen as a sports brand that can help to innovate and can help to push boundaries in sports. 2026, I'm incredibly excited, of course, about the sports moments that are there to come and which we've achieved already. At the very beginning of the year, we had an all PUMA Final at the Africa Cup of Nations, where Senegal and Morocco were playing the final, and Senegal, for the 2nd time in a row, took the championship. Just a couple of weeks later, in Denmark, at the European Handball Championships, we had another all PUMA Final with Germany and Denmark playing in that game. The title was won by Denmark, led by Mathias Gidsel, who is a key ambassador for PUMA in this sport. We're also extremely excited about our future propositions, our opportunities when it comes to Running, Long-distance running, and Marathons. Just a couple of days ago, there was a new European record set by Yann Schrub in a 10K race. That was the fifth fastest ever time globally recorded, actually. Moving on to HYROX. As I said already a couple of times, a key partnership for us that we extended in October for another five years. Will be a massive event happening in May in New York, and we're also equally excited about the World Championships in Stockholm later on this year. The comeback of Tyrese Haliburton in the NBA, performing and outperforming what he started until end of last year. Of course, the pending start of the Formula 1 season again, with McLaren as a new additional partner to our roster. To support that, we've had already several very exciting launches, product launches at the beginning of the year. Full sellout of the first ever handball personalized proposition with Mathias Gidsel. The HYROX family has finally gotten its own dedicated piece of footwear. For the first time ever, we have created a dedicated shoe, a dedicated piece of footwear that has started to sell last week already. The sell-out ratios and the response is absolutely phenomenal. Last but not least, in running, we continue to innovate with the Deviate NITRO Elite 4. Three propositions that were all launched already or are being launched in the first quarter of the year, which will also give me a lot of confidence that NITRO, as the best running platform, as the best running proposition, will really start to break through in the world of sports. At the same time, we're of course also very concerned and very continuously working on connecting ourselves to culture and celebrating sports culture around the globe. We continue to believe in the prosperity of the Speedcat. We have had a really great activation period throughout the Paris Fashion Week with the Suede, which we believe will be the next iconic pillar in our roster for PUMA in the sports lifestyle area. We've also, in the background, continued to excite and innovate with collaborations that we believe will excite consumers around the globe. Many things have started to happen already to make sure with our brand moving forward, we're gonna elevate our game. The objectives for 2026 are pretty simple and pretty straightforward on this page. First and foremost, a continuation of the three-year transformation journey that we embarked upon last year. We will transform our company and our brand to succeed in the future with the measures that were outlined previously. It's our foremost goal to accelerate PUMA's brand momentum in order to achieve commercial success, and the first step here really has to be to drive our brand through the multitude of product launches, integrated storytelling, and a much more succinct go-to-market process to subsequently achieve commercial success. We also will shift towards a higher quality revenue with an improved focus on profitability. That also means that we operate in channels which allow for better profitability, which also allow for better pricing, and in our very own channels, reduced discounting policy. We're going to elevate the financial discipline, and we'll deliver reliable results as is promised ready in 2025. Last but not least, in order to win, we're going to continue to build a high-performing team around the world, not just from a structural perspective as I've outlined, but also by getting the best people into the jobs to do the job for PUMA moving forward. Now, let's take a look at 2026 and the outlook. What are the expectations and the underlying assumptions for this year? From a sales perspective, as for top line, we expect a constant currency sales decline in the low to mid-single-digit % range. FX headwinds are expected for around 3 percentage points. From a regional perspective, the primary driver for the sales decline will be reduced sales in North America, which is a further consequence of our strategy to streamline the distribution we've already initiated in 2025. On the other more positive side, sales will grow in Latin America, the Middle East, Africa, and India. ANTA's recent acquisition of 29% stake in our company will most likely negatively impact our business in Greater China in 2026. Nevertheless, we believe that this partnership will deliver substantial mid to long-term benefits for our brand and our company. With regards to sales channels, we anticipate a decrease in wholesale sales, while our direct-to-consumer business is expected to grow currency adjusted. We also do expect that the second half of 2026 will be stronger than the first half. Additionally, sales in the first quarter of 2026 should align with our full-year outlook. To expected sales decline, our reported EBIT is forecasted to range between -EUR 50 million to -EUR 150 million. This includes one-time effects, which are projected to be significantly lower compared to last year. As Markus already mentioned, we also anticipate a substantial improvement in our gross margin, while OpEx are not expected to be materially lower in absolute terms as we continue to invest and strengthen our DTC channels. Finally, our CapEx is expected to come in at around EUR 200 million, and we'll focus mainly on our digital infrastructure and investments in our own channels. I trust you've seen from us that we are engaged in building a strong foundation for this business and for this brand to then return to profitable growth in 2026. That year of transition is absolutely required for us to make the appropriate adjustments and to execute the promises which we've given in 2025. That being said, we're at the end of the presentation. I want to hand back to Manuel. Thank you. Thank you, Arthur. Thank you, Markus. We are now ready to start the Q&A session. Operator, please open the lines for questions. Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star followed by two. If you're using speaker equipment today, please lift the handset before making your selections. Anyone who has a question may press star followed by one at this time. In the interest of time, please limit yourself to two questions only. One moment for the first question, please. The first question comes from the line of William Woods from Bernstein. Please go ahead. Hi, good afternoon. The first question's on inventory and inventory clearance. When you look at how much inventory is still out there in wholesale channels, how much do you think is out there? Do you think there's still a way to go to clear that, some of that wholesale inventory? The second one is on, kind of kickstarting the brand heat and brand growth again. I suppose, how do you think about doing that, over the next six months? Is this something that you're going to start doing in kind of H2? What do you think we should be looking for in terms of seeing that inflection into H2 and into 2027? Thanks. Thank you, William, for your questions. I will start with the first part, and then Arthur will answer on the brand momentum. Regarding inventory, I shared also in my prepared remarks, with the Reset in 2025, we've completed the majority of the targeted takebacks from the wholesale accounts. So that's where we've been making very good progress. On top of it, I think, as you've seen, I think that we are slightly ahead of plan. Also, with the development from Q3 to Q4, we've been making good progress as we reduced our purchase orders, as also Arthur outlined in the presentation, and of course, are targeting to further reduce the excess inventory through our own factory outlets and also selected wholesale partners. Rest assured, I think we are firmly committed also to come back to normalize inventory levels at the end of 2026. Thanks, Markus, and yes, William, allow me to talk about the plans, how to increase our brand heat. We have not just reorganized our teams for future success in spring, summer 2027, but of course, we're taking immediate measures when it comes to 2026. The platforms that are provided for us are the World Cup in North America, of course, our partnership with HYROX, a much better communication, a much more succinct conversation about NITRO as a platform, and then engaging with our style audience differently. Some of those things, you've seen already happening around Paris, where we ignited a conversation around the Suede. We are going to be continuously focused on Speedcat as a second pillar when it comes to our style proposition. What you can expect also from a consumer perspective is a shift away from conventional, above-the-line media purchasing, to a much more grassroots, to much more personal conversation that will help us to also to engage with consumers more in the long term and more frequently than just sporadically popping up. You'll also see a highlighted conversation around products to make sure our consumers do understand what, for example, a great technology like NITRO will mean for them in the future and what benefit it can provide, versus just having a very generic conversation about running as a proposition. These are some of the things consumers can expect from us now, already, but definitely heading into the second half of this year. Understood. Thank you. Next question comes from the line of Warwick Okines from BNP Paribas. Please go ahead. Thanks. Good afternoon, everyone. Two questions from me, please. Firstly, you're reducing your dependence on the undesirable wholesale, as you've described, but actually, through this inventory cleanup process, you're having to use mass merchants to help you clear. Does that hurt the brand in the short term? Second question is actually around ANTA. I mean, does it still make sense to hold a strategy update in Q2, given that you've got a new partner coming on board? Actually, if you don't mind, a sort of subset to that. You made a comment about China in your outlook and ANTA, and I didn't quite understand that. Perhaps you could elaborate. Thank you. Okay. Thank you very much for those questions. I'll start with the inventory cleaning. We have taken a significant amount of inventory back. That doesn't mean we're then gonna relaunch them in the market with mass merchants. We have, of course, engaged with wholesale partners on those inventories, on those packs, and we have a dedicated plan in place with our very own channels to gradually, throughout the year, liquidate that inventory, fulfill the promise that Markus was alluding to, that our inventories, by the end of this year, will be on a level playing field again. Secondly, very good question regarding the strategy update. Yes, we have initially talked about having a full strategy update for Q2, but as you've alluded to, with a new partner coming on board, it is more than important for us to fully assess the new factors, the new opportunities that this partnership will bring to us, and therefore, instead of giving you a full strategy update, we are committed to updating you on our progress as we go through the upcoming quarter reports. We'll, of course, discuss with our future partner, more long-term ambition and more long-term strategy as we go along. Thank you very much. To your third question, the impact on China that I was alluding to, let me just put this into perspective. Our business in China is just shy of around about EUR 500 million in 2025. The split of our business in China is reverse than it is globally. About 70% of our business, we do in DTC channels and 30% is in wholesale, primarily with franchise partners. Our Greater China wholesale business, we do, of course, have ongoing commitments with our wholesale partners. As ANTA enters as a strategic partner, and we're very grateful for that, it does bring a unique DTC approach. Our partners do anticipate that PUMA's distribution model might shift in the future towards a more DTC-led share versus where we are today. These anticipated results might lead to commitments with our wholesale partners not being extended, such, for example, as new store openings, renovations, or even their ordering. We expect this to lead to a negative impact in our Greater China business in 2026, as these commitments might not be extended. We do anticipate that the medium to long-term benefits for us are significantly outweighing those short-term volatility. In collaboration with the strategic partner, we're also presenting unparalleled expertise in the region. We are positioned to access one of the largest sports markets globally and differentiate ourselves over the medium to long term. In our outlook in 2026, a potential short-term impact on our wholesale business is assumed and reflected in both sales and profitability. That's really helpful. Thank you so much. The next question comes from the line of Anne-Laure Bismuth from HSBC. Please go ahead. Yes. Hi, good afternoon. Thank you for taking my two questions. I will start with the first one about the fact that you used to be the go-to brand for the Formula 1 or the lifestyle basketball, given the increase in the competition, particularly in Formula 1, on which category can you differentiate yourself versus the competition? My second question is about the right sizing of the wholesale distribution. How far are you in the process? You talk about a double-digit decline in the U.S., will you also rightsize wholesales in other region? What do you see as a healthy balance between B2C and wholesale for the group going forward? Thank you very much. Thanks for the question, Anne-Laure. Let me start with our focus on which categories we are going to differentiate ourselves. First and foremost, as I said, NITRO, as the best platform in performance running, is a key differentiator for us. From a results perspective, from a testing perspective, we are far outperforming competition there at the moment. We'll definitely also differentiate ourselves in the space of training with a unique partnership that is HYROX, an exclusive partnership that we've extended over the last five years, and that will be unrivaled, and no one else in the sporting goods industry can compete and match against that. I would also like to point out, because you said Formula 1, that we're of course not just giving up our giving up our competitive advantage, because we will add with McLaren the winning the defending championship champion both in constructors but also in the individual titles. Next to Ferrari and Aston Martin, I would say an unrivaled positioning. In the other categories that I don't know well, deeper on, of course, we're looking at competitive advantages versus other sporting goods players in there. I'm very confident, specifically with the three platforms I've mentioned previously, that we have a very promising roster for us to differentiate ourselves as a brand and to create a brand heat moving forward. Second question was about right sizing of wholesale in other regions. The effort that we have started was not just focusing on North America, where we most likely have the highest exposure to mass merchants. Effort was started everywhere across the globe. We are working with Matthias' team on a very clear and globally consistent parameter, segmentation parameter when it comes to wholesale customers, and we're also making sure that with our future efforts, our wholesale business remains healthy. That means we have, as we've communicated last time, proactively reduced purchase orders for the early half of 2026. At the same time, with the measures I've just mentioned a few minutes ago, we are keen to grow in the better wholesale channels, the branded wholesale channels, where we can also appear as a premium brand and command full price sell-throughs. The last question, I think, was relating to an ideal or healthy mix. I think the proximity of what the industry overall at the moment is positioned in is a 60/40 split, 60% wholesale, healthy wholesale business, and 40% DTC will also be the areas we will be landing on as a brand in the future. Thank you. The next question comes from the line of Jürgen Kolb from Kepler Cheuvreux. Please go ahead. Yes, very good. Thanks very much. Two questions, really. First one on the previous question, really, the breakdown. Arthur, you mentioned 60/40. Within this 40%, where do you see the digital contribution? In this respect as well, I think you were targeting to hire a dedicated manager for your digital business. Has that already been done? The second thing is, maybe a little bit longer term out, as you and the whole team has obviously gone through the numbers and the strategies and what have you. Longer term view, gross profit margin potential, what do you think is possible for this group when you target more of the better distribution channels, less discounting, maybe a little bit better distribution mix? When we're talking about a stronger focus on higher priced products, just your thoughts as to what you think could be possible in a longer term perspective. Thank you. Thank you very much, Jürgen. I'll take the first part, and then Markus will elaborate a little bit on the second part. Of course, as he said, those are connected to each other. From a DTC and specifically from an e-commerce perspective, yes, we do anticipate higher, significantly higher growth rates in our e-commerce business. That's why we also said from a CapEx perspective, we are going to invest, over-invest in our digital capabilities as a company, which to a large degree, will of course benefit our digital platforms and our digital business moving forward. We do see PUMA at the moment underpenetrated versus competition, but also underpenetrated within our own ecosystem. The position of the global VP of e-commerce, sorry, e-commerce, a role that we've split recently, we are making significant progress, and I'm pretty confident that in the next few weeks, we can also give you an update in that regard. Jürgen, thank you for your second question. Let me start with walking you through what are the gross profit margin drivers also for 2026. We also, as we shared in the prepared remarks, I think we expecting a substantial improvement in our gross profit margin in 2026. Mainly driven by, of course, as low promotions and of course, also the change in inventory reserves. In terms of the overall, and I think your question was also going beyond 2026, looking at the midterm development, we will provide more information on midterm targets in due course and take, of course, the recent developments, and I think then also now on the shareholder side, I think as Arthur also mentioned earlier, into account, and include this in our discussion. Coming out of the Reset, I think in 2025, it's not prudent to provide a midterm target or ambitions at this point in time. Got it. Thank you very much. Welcome. The next question comes from the line of Thierry Cota from Bank of America. Please go ahead. Yes, good afternoon, gentlemen. Thank you very much for taking my questions. First of all, on the takebacks, please, could you give us the amount of takebacks that were realized last year in million euros in the second half? What was the organic growth rate ex takebacks in Q4? Secondly, Arthur, I didn't fully understand what you said regarding 2027 targets when you said healthy profitability should evolve in the same manner. I'm quoting what you said. I think you've been extremely clear on the growth and the idea of growing faster than the industry, which I think you put last time we talked at about 5% growth, so above that. On healthy profitability, where do you place it for next year and going forward, please? Thank you. Thank you for your questions. Looking at the first chart, I think going back to your inventory takebacks and also that you understand the magnitude of the Reset. In the financial parts, the first chart that I shared also gave you an illustrative indication that our sales decline on a currency-adjusted basis for the full year 2025 is mainly driven by the Reset initiatives. From the Reset initiatives, the reduction of the undesirable business has the biggest impact, then followed by the takebacks and of course, the reduced promotions. These three, of course, also factors and those key drivers also of the Reset, of course, impacted also our fourth quarter results in 2025. Let me allude to the 2027 comments I've made. We do expect to grow above the industry average at that point in time. That, without having a crystal ball, should be something in the low single digits to mid single digits, and we are committed to develop our plans and therefore also guide around that one. From a profitability perspective, yes, we will be turning into a healthy company again as of 2027 and beyond. At this point in time, I would not make any comments in terms of where that will be exactly, and I hope and I trust you would understand that at this point in time. Thank you. The next question comes from the line of Piral Dadhania from RBC. Please go ahead. Okay, good afternoon. Thank you for taking my questions as well. Two, please. The first is just on the product offer. I think you talked about rationalizing the range. Could you maybe just elaborate a bit on which categories you had to cut down on? In particular, is it more footwear or apparel, and within which category, if possible? Going forward, do you expect to run this kind of range size, or should we expect it to maybe grow in the future as the product pipeline starts to populate? Just in relation to the price positioning, you know, you've given us a lot in terms of what you've done, in terms of inventory clearance. How do you view the current PUMA price positioning in the marketplace relative to your competitors and the brand equity? Is there any scope for change there? Secondly, just on wholesale, could you maybe just give us a flavor as to what the type of conversations you're having with your partners is like? You know, are they encouraged by the Reset actions that you're taking? Are they giving you indications that they will support the expansion of your, you know, market share? Do you have a sales team on the ground in your major markets to help to develop those relationships, or do you need to invest in that capability? Thank you. Thank you very much, Piral. Let me start with the product range and the size of that range. We have across the board investigated in which categories, footwear, apparel, but also in which sports we're going to reduce. Overall, I can say in every category that is out there, we have started to reduce our range, and we have decomplexified our offer, basically. That should allow us, across the board in each and every area, to be more pointed, to be better from a storytelling perspective, and to be more streamlined towards our consumers and also our customers. I do not anticipate that will bounce back in the very near term, 'cause I'm very convinced we have a very sufficient product offering across all categories, across all sports, and also to cater for the short to midterm opportunities for PUMA as a brand. Should we decide to go into other sports or other categories in the future, that, of course, would need to be revised. From a current price position of PUMA, I think we've alluded to that. Of course, our first and foremost concern is to reduce the discounting of our very own product, starting in our DTC channels, and then also figuring out a way how to play in the better, in the more ambitious sales channels in the future. I am, however, very, very encouraged by our success that I've just alluded to, the running and the training footwear franchise I've mentioned, that had tremendous sellouts at the beginning of the year already, are commanding price points of around EUR 250 each. That is very much at the top of the pyramid from an industry perspective. As a brand, we are absolutely capable and competent to sell products at those high-end premium price points at very good ratios. Last but not least, you talked about the sentiment of our wholesale partners. Yes, I'm not just traveling frequently. I was in the U.S. recently around the All-Star weekend. I've pretty much met, as my team has, all major wholesale partners. They do believe in our story. They are supporting the Reset of our brand, and they do believe in a significantly brighter future for the PUMA brand. That, of course, entails the hard work I was alluding to in 2026, and us convincing them with more with better propositions as of spring, summer 2027. Yes, of course, in all markets, not just the major markets, in all markets, we have sales teams on the ground. Those sales teams, however, are also reorganized and adjusted to make sure they're gonna cater for our opportunities. First and foremost, for example, in the specialist channels that are catering for the running consumers, where we as a brand have started to invest already significantly as of the end of 2025. Thank you. Thank you. The next question comes from the line of Adam Cochrane from Deutsche Bank. Please go ahead. Good afternoon. Thanks, guys. First question I've got is: do you think that given the balance sheet and the cash position, that there's any constraints that have been put on your plan because of the sort of current financial position, or is everything that you want to do, able to do within the current resources, given the available liquidity that you've pointed out? The second question is really one in terms of the sort of shape of sales throughout 2026. I know that you talked about the second half being stronger than the first half, but given the sort of Q3, Q4 split, there's some quite big moving parts within that. What I'm trying to sort of get to grips with is it how bad could Q1 be? I think you answered earlier, but I didn't quite work out exactly what you're trying to say. What was the organic growth rate in Q4 without the takebacks, and is that way we should think about Q1? The other bit that I was thinking about is, these products that you bought back, does that actually boost your sales growth next year, or is it a risk that it dilutes it because people purchase the discounted product rather than full priced product? I was just getting an idea of how you think about that. Thanks. Thank you, Adam, for your questions. On the balance sheet, as we've worked through, especially the fourth quarter, and you've seen also the press release we issued in December, where we secured additional financing, and if I look also and what I shared in my prepared remarks, at the end of 2025, we had total EUR 1.5 billion of financial headroom available between our cash and also the unutilized credit lines. In terms of the additional financing, and I think then also, and providing additional financial flexibility so to support also the investments into strategic priorities we've completed, I think, what we've planned. Arthur will take you through the phasing of 2026. Yeah, I think your question was specific on the first half. I just want to reiterate, maybe that wasn't clear enough what I said during the presentation. We do expect our sales in the first quarter to align with our full year outlook. That full year outlook, just to remind again, was a constant currency sales decline in the low to mid-single digits. Let's just not forget, we have taken a significant amount of purchase orders out of the first half in 2026 last year already. We've been collaborating and working with our wholesale partners, primarily in order to avoid a further overstock situation, and that will, of course, have an impact on our top line results in the first half. That is all baked, however, in our outlook. At the same time, you've asked about the organic performance in the fourth quarter. A similar answer to that, with us taking significant stock out of the market, that, of course, has reduced our top line performance in the third, but more specifically, as Markus pointed out, in the fourth quarter. Will those take back products materially impact our performance in 2026? No, not really, because that is exactly the purpose why we took those products out of the market, why we've put them in our own inventory positions and why we have developed plans both with wholesale customers and within our own DTC channels, to liquidate them in a more responsible and in a more planned manner throughout the year of 2026. I would like to point out at this moment as well, however, when we talk about a significantly reduced discounting policy, we will, at the appropriate moments in time when the entire industry is going into discount mode, of course, do the same from a PUMA perspective. These will be the windows that allow us as a brand then, to liquidate overstock and residual products like competition will be doing in the future. Thank you. We now have time for one more question, which comes from the line of Robert Krakowski from UBS. Please go ahead. Two questions for me, please. The first one will be on gross margin. We heard that there is going to be a substantial improvement to gross margin, and you mentioned specifically the promotion activity. Are there any other positives that we should be thinking about gross margin, maybe specifically the FX hedging in the second half? How material can it be for 2026? The second one will be just clarification on the industry growth, because now we heard that it's going to be low single digit to mid single digit, potentially in 2027. I think previously it was roughly 5%. What has realistically changed in the last few months? Is there anything new that you realized or what basically is driving the change in the view? If you could share any more details. Thanks. Thank you, Robert, for your questions. Let me guide you through the gross margin drivers for 2026. We expect, I think as we said earlier, a substantial improvement in our gross profit margin. The drivers are mainly promotions as we continue with the efforts to reduce promotions to our B2C channels and inventory reserves. In addition, also we expect some tailwind from the channel mix. I think as we also talked about, I think we expect a stronger growth in the B2C channel compared to wholesale. I think there's still a little bit of shift in the distribution mix, I think contributes also to the gross profit margin development. As you pointed out, and of course, also given the weaker U.S. dollar, the weaker U.S. dollar is, with our hedging policy, a tailwind in the second half of 2026, but it's a slight tailwind, so that's why we didn't call it out earlier when we talked about the key gross and profit margin drivers. Thank you. Yes, Robert, to your second point, let me just clarify. I did not fully give you an outlook of the perceived industry growth. I was exemplarily saying, of course, we expect a mid-single digit, 5%, roughly, growth in the market. It would not be prudent at this point in time to commit to such a growth. What we are committing to, of course, is that should the industry average be that 5% or mid-single digit, PUMA will grow above that industry standard in 2027 again. We'll update you later in the year as we have more transparency also on how the year 2026 as an industry unfolds, to then project that growth for the next year. Thank you. There are no further questions at this time. I'll hand back to Manuel Bösing for closing comments. Thank you very much, Maura, and thanks to everyone for your questions. We appreciate your interest in PUMA, and we look forward to speaking with you again soon. This concludes our call for Q4 and full year 2025. Thank you, everyone, and goodbye.

Speaker 7: Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the Q4 and full year 2025 earnings call of PUMA SE. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may press star, followed by one on your touch-tone telephone. Please press the star key followed by zero for operator assistance. I would now like to turn the conference over to Manuel Bösing, Director of Investor Relations. Please go ahead. Ladies and gentlemen, thank you for standing by. ladies and gentlemen thank you for standing by Welcome, and thank you for joining the Q4 and full year 2025 earnings call of PUMA SE. welcome and thank you for joining the q4 and full year 2025 earnings call of puma se Throughout today's recorded presentation, all participants will be in a listen-only mode. throughout today's recorded presentation all participants will be in a listen-only mode The presentation will be followed by a question and answer session. the presentation will be followed by a question and answer session If you would like to ask a question, you may press star, followed by one on your touch-tone telephone. if you would like to ask a question you may press star followed by one on your touch-tone telephone Please press the star key followed by zero for operator assistance. please press the star key followed by zero for operator assistance I would now like to turn the conference over to Manuel Bösing, Director of Investor Relations. i would now like to turn the conference over to manuel bösing director of investor relations Please go ahead. please go ahead

Speaker 5: Thank you very much, Maura. Hello, everyone, welcome to the PUMA conference call for the Fourth Quarter and Full Year 2025. Joining me today are our CEO, Arthur Hoeld, and our CFO, Markus Neubrand. Before we start, please take note of the cautionary statement regarding forward-looking information. Arthur and Markus will guide you through today's presentation, covering our business recap, financial update, and outlook for the year ahead. After the presentation, we will open the floor for your questions. For the Q&A session, we kindly ask that you limit your initial questions to two per person. This will allow as many participants as possible the opportunity to take part in the discussion. We will begin with a short video. Afterwards, Arthur will take over. With that, please enjoy the video. Thank you very much, Maura. thank you very much maura Hello, everyone, welcome to the PUMA conference call for the Fourth Quarter a nd Full Year 2025. hello everyone welcome to the puma conference call for the fourth quarter a nd full year 2025 Joining me today are our CEO, Arthur Hoeld, and our CFO, Markus Neubrand. joining me today are our ceo arthur hoeld and our cfo markus neubrand Before we start, please take note of the cautionary statement regarding forward-looking information. before we start please take note of the cautionary statement regarding forward-looking information Arthur and Markus will guide you through today's presentation, covering our business recap, financial update, and outlook for the year ahead. arthur and markus will guide you through today's presentation covering our business recap financial update and outlook for the year ahead After the presentation, we will open the floor for your questions. after the presentation we will open the floor for your questions For the Q&A session, we kindly ask that you limit your initial questions to two per person. for the q&a session we kindly ask that you limit your initial questions to two per person This will allow as many participants as possible the opportunity to take part in the discussion. this will allow as many participants as possible the opportunity to take part in the discussion We will begin with a short video. we will begin with a short video Afterwards, Arthur will take over. afterwards arthur will take over With that, please enjoy the video. with that please enjoy the video

Speaker 13: When you've been in this game for over 75 years, it's fair to say we have what it takes. When you've been in this game for over 75 years, it's fair to say we have what it takes. when you've been in this game for over 75 years it's fair to say we have what it takes The team at PUMA, we killing it right now. Y'all did that? The team at PUMA, we killing it right now. the team at puma we killing it right now Y'all did that? y'all did that To win and celebrate timeless triumphs, to reshape the future, push performances beyond boundaries, winning medals and breaking records in style. To win and celebrate timeless triumphs, to reshape the future, push performances beyond boundaries, winning medals and breaking records in style. to win and celebrate timeless triumphs to reshape the future push performances beyond boundaries winning medals and breaking records in style Creatures of my dreams, rise up and dance with me. Creatures of my dreams, rise up and dance with me. creatures of my dreams rise up and dance with me The truth is, we've also learned that victory never, ever comes easy. Goals don't live in our comfort zone, and icons aren't just created overnight. Right now, we're facing our biggest challenge yet. To reclaim our position on the court, on the track, the green, the pitch, the floor, the screens, and the streets all around the world. This meant we had to change and turn things around in 2025. We had to step up our game, raise our own bar, and take that leap to question what works and change what doesn't. This is how we sharpen our focus, rethink collections, reveal how we bring our brand and products into the hearts and minds of our customers- The truth is, we've also learned that victory never, ever comes easy. the truth is we've also learned that victory never ever comes easy Goals don't live in our comfort zone, and icons aren't just created overnight. goals don't live in our comfort zone and icons aren't just created overnight Right now, we're facing our biggest challenge yet. right now we're facing our biggest challenge yet To reclaim our position on the court, on the track, the green, the pitch, the floor, the screens, and the streets all around the world. to reclaim our position on the court on the track the green the pitch the floor the screens and the streets all around the world This meant we had to change and turn things around in 2025. this meant we had to change and turn things around in 2025 We had to step up our game, raise our own bar, and take that leap to question what works and change what doesn't. we had to step up our game raise our own bar and take that leap to question what works and change what doesn't This is how we sharpen our focus, rethink collections, reveal how we bring our brand and products into the hearts and minds of our customers- this is how we sharpen our focus rethink collections reveal how we bring our brand and products into the hearts and minds of our customers- Damn! Damn! damn Reset what we bring to the table while we embrace our history, our innovations, and our DNA. Let's get to it. Let's rebuild a business that's relevant in another 75 years. Let's be our best team, partner with the people we know, trust the process, and become part of a culture to be proud of again. Reset what we bring to the table while we embrace our history, our innovations, and our DNA. reset what we bring to the table while we embrace our history our innovations and our dna Let's get to it. let's get to it Let's rebuild a business that's relevant in another 75 years. let's rebuild a business that's relevant in another 75 years Let's be our best team, partner with the people we know, trust the process, and become part of a culture to be proud of again. let's be our best team partner with the people we know trust the process and become part of a culture to be proud of again It is his first goal for Portugal. It is his first goal for Portugal. it is his first goal for portugal We know we have what it takes to get back where we belong as one global sports brand. We know we have what it takes to get back where we belong as one global sports brand. we know we have what it takes to get back where we belong as one global sports brand Well, the winner has been quite impressive. Well, the winner has been quite impressive. well the winner has been quite impressive Well done. Terrific. Just remember... Well done. well done Terrific. terrific Just remember... just remember This is PUMA. This is PUMA. this is puma

Speaker 3: Good afternoon, welcome from my side here, from Arthur and Markus as well. I think that video summarized perfectly what a great brand we are, what a great potential we have, it certainly also highlighted some of the challenges that we have started to take last year. Allow me to take you on that journey and the progress that we have made over the last few months. Starting, of course, when we talk about PUMA, we want to start with sports, the foundation that we build upon. Some of the highlights last year were definitely Mondo Duplantis taking the World Title and at the same time, the World Record in Pole Vaulting at the Tokyo World Championships. That also made him the fourth time the Men's Athlete of the Year. Good afternoon, welcome from my side here, from Arthur and Markus as well. good afternoon welcome from my side here from arthur and markus as well I think that video summarized perfectly what a great brand we are, what a great potential we have, it certainly also highlighted some of the challenges that we have started to take last year. i think that video summarized perfectly what a great brand we are what a great potential we have it certainly also highlighted some of the challenges that we have started to take last year Allow me to take you on that journey and the progress that we have made over the last few months. allow me to take you on that journey and the progress that we have made over the last few months Starting, of course, when we talk about PUMA, we want to start with sports, the foundation that we build upon. starting of course when we talk about puma we want to start with sports the foundation that we build upon Some of the highlights last year were definitely Mondo Duplantis taking the World Title and at the same time, the World Record in Pole Vaulting at the Tokyo World Championships. some of the highlights last year were definitely mondo duplantis taking the world title and at the same time the world record in pole vaulting at the tokyo world championships That also made him the fourth time the Men's Athlete of the Year. that also made him the fourth time the men's athlete of the year Amanal Petros, featuring the Fast-R 3, was winning the silver medal in the marathon race, and then subsequent to that in Valencia, set the third Fastest European time ever. We are very happy that to-date, we have 10 teams qualified for the FIFA World Cup, and that gives us strong presence at one of the most prolific sporting events later this year. HYROX key partnership that we have extended last year sees increasing popularity, building a community way beyond what we have imagined beforehand, and we have key athletes who are breaking world records almost on a weekly basis. Amanal Petros, featuring the Fast-R 3, was winning the silver medal in the marathon race, and then subsequent to that in Valencia, set the third Fastest European time ever. amanal petros featuring the fast-r 3 was winning the silver medal in the marathon race and then subsequent to that in valencia set the third fastest european time ever We are very happy that to- date, we have 10 teams qualified for the FIFA World Cup, and that gives us strong presence at one of the most prolific sporting events later this year. we are very happy that to- date we have 10 teams qualified for the fifa world cup and that gives us strong presence at one of the most prolific sporting events later this year HYROX key partnership that we have extended last year sees increasing popularity, building a community way beyond what we have imagined beforehand, and we have key athletes who are breaking world records almost on a weekly basis. hyrox key partnership that we have extended last year sees increasing popularity building a community way beyond what we have imagined beforehand and we have key athletes who are breaking world records almost on a weekly basis In Formula 1, last year, we had two out of five teams in the top Constructor Championships. As you've seen from our recent announcements, we're very proud to add McLaren, the current champion in the team and individual championships, to our roster for 2026. Last but not least, with Dennis Schröder and the German team winning the Euro Champs, at the same time, we are looking forward to Tyrese Haliburton coming back in the new season. There's a lot of positivity, a lot of great achievements that PUMA as a brand has seen in the year 2025. We also do see our foundation for future success in exactly those areas. First and foremost, providing innovative technologies for our athletes, for our teams, for our high-performing sports people. In Formula 1, last year, we had two out of five teams in the top Constructor Championships. in formula 1 last year we had two out of five teams in the top constructor championships As you've seen from our recent announcements, we're very proud to add McLaren, the current champion in the team and individual championships, to our roster for 2026. as you've seen from our recent announcements we're very proud to add mclaren the current champion in the team and individual championships to our roster for 2026 Last but not least, with Dennis Schröder and the German team winning the Euro Champs, at the same time, we are looking forward to Tyrese Haliburton coming back in the new season. last but not least with dennis schröder and the german team winning the euro champs at the same time we are looking forward to tyrese haliburton coming back in the new season There's a lot of positivity, a lot of great achievements that PUMA as a brand has seen in the year 2025. there's a lot of positivity a lot of great achievements that puma as a brand has seen in the year 2025 We also do see our foundation for future success in exactly those areas. we also do see our foundation for future success in exactly those areas First and foremost, providing innovative technologies for our athletes, for our teams, for our high-performing sports people. first and foremost providing innovative technologies for our athletes for our teams for our high-performing sports people Whether it's a pair of technologies like CLOUDSPUN or dryCELL, or the best technology in the running world out there with NITRO. We're extremely proud of the developments and of the success stories our teams have achieved in recent months. Second to that, our brand will be built on community platforms, connecting with consumers around the world, connecting in new, different, and engaging ways to really set the tone and set the standard where PUMA will be at the forefront of conversations again. Of course, it's also about global reach. A brand that is globally recognized, but globally also connects on the highest level with partnerships that have been either long-lasting or will be added freshly and newly to excite our audience out there. Whether it's a pair of technologies like CLOUDSPUN or dryCELL, or the best technology in the running world out there with NITRO. whether it's a pair of technologies like cloudspun or drycell or the best technology in the running world out there with nitro We're extremely proud of the developments and of the success stories our teams have achieved in recent months. we're extremely proud of the developments and of the success stories our teams have achieved in recent months Second to that, our brand will be built on community platforms, connecting with consumers around the world, connecting in new, different, and engaging ways to really set the tone and set the standard where PUMA will be at the forefront of conversations again. second to that our brand will be built on community platforms connecting with consumers around the world connecting in new different and engaging ways to really set the tone and set the standard where puma will be at the forefront of conversations again Of course, it's also about global reach. of course it's also about global reach A brand that is globally recognized, but globally also connects on the highest level with partnerships that have been either long-lasting or will be added freshly and newly to excite our audience out there. a brand that is globally recognized but globally also connects on the highest level with partnerships that have been either long-lasting or will be added freshly and newly to excite our audience out there That all will be built on 77 years of history, of history that was made out of great products, great athletes, and great partnerships that have built PUMA into one of the greatest brands on Earth to date. However, we also recognized last year that we have to start to do things differently in our organization and in our brands. We have called out a three-year transformation journey that was clearly starting middle of last year with the so-called Reset. Let me give you a brief update, what we have achieved and what we've done in those last five to six months since we called this out. 2025 was not just a year of Reset. That all will be built on 77 years of history, of history that was made out of great products, great athletes, and great partnerships that have built PUMA into one of the greatest brands on Earth to date. that all will be built on 77 years of history of history that was made out of great products great athletes and great partnerships that have built puma into one of the greatest brands on earth to date However, we also recognized last year that we have to start to do things differently in our organization and in our brands. however we also recognized last year that we have to start to do things differently in our organization and in our brands We have called out a three-year transformation journey that was clearly starting middle of last year with the so-called Reset. we have called out a three-year transformation journey that was clearly starting middle of last year with the so-called reset Let me give you a brief update, what we have achieved and what we've done in those last five to six months since we called this out. 2025 was not just a year of Reset. let me give you a brief update what we have achieved and what we've done in those last five to six months since we called this out 2025 was not just a year of reset We have clearly communicated and acted upon key measures and key activities that will take PUMA into a different area and allow us to really fulfill our growth ambitions in the years to come. From a distribution perspective, we have talked about cleaning up un undesirable wholesale business, reducing our overstock with wholesale partners, at the same time, reducing our discounts on our own channels, and I come to talk a little bit more in detail about that one. From a cash perspective, we have become a much more prolific organization in terms of managing our cash situation. We have definitely reduced our PO placements in order to avoid a further oversupply, for example, for our 2026 business. At the same time, we have also Reset our OpEx operations. We have clearly communicated and acted upon key measures and key activities that will take PUMA into a different area and allow us to really fulfill our growth ambitions in the years to come. we have clearly communicated and acted upon key measures and key activities that will take puma into a different area and allow us to really fulfill our growth ambitions in the years to come From a distribution perspective, we have talked about cleaning up un undesirable wholesale business, reducing our overstock with wholesale partners, at the same time, reducing our discounts on our own channels, and I come to talk a little bit more in detail about that one. from a distribution perspective we have talked about cleaning up un undesirable wholesale business reducing our overstock with wholesale partners at the same time reducing our discounts on our own channels and i come to talk a little bit more in detail about that one From a cash perspective, we have become a much more prolific organization in terms of managing our cash situation. from a cash perspective we have become a much more prolific organization in terms of managing our cash situation We have definitely reduced our PO placements in order to avoid a further oversupply, for example, for our 2026 business. we have definitely reduced our po placements in order to avoid a further oversupply for example for our 2026 business At the same time, we have also Reset our OpEx operations. at the same time we have also reset our opex operations We have, for example, significantly reduced our range size and our complexity, and also committed to working on our operational inefficiencies as an organization and as a company. When I talk about right-sizing measures across our business, I wanted to give you some details, a bit more flavor, what that meant for us. In the S, for example, when it comes to undesirable wholesale business, we will decrease our business by the double digits over the next couple of years until the end of this year. We have already started to reduce our discounting policy in our own e-commerce channels as well in our retail channels. This had already a significant impact, not just on our top line, but more importantly, that people and consumers start to see us again as a serious brand and as a brand that commands value. We have, for example, significantly reduced our range size and our complexity, and also committed to working on our operational inefficiencies as an organization and as a company. we have for example significantly reduced our range size and our complexity and also committed to working on our operational inefficiencies as an organization and as a company When I talk about right-sizing measures across our business, I wanted to give you some details, a bit more flavor, what that meant for us. when i talk about right-sizing measures across our business i wanted to give you some details a bit more flavor what that meant for us In the S, for example, when it comes to undesirable wholesale business, we will decrease our business by the double digits over the next couple of years until the end of this year. in the s for example when it comes to undesirable wholesale business we will decrease our business by the double digits over the next couple of years until the end of this year We have already started to reduce our discounting policy in our own e-commerce channels as well in our retail channels. we have already started to reduce our discounting policy in our own e-commerce channels as well in our retail channels This had already a significant impact, not just on our top line, but more importantly, that people and consumers start to see us again as a serious brand and as a brand that commands value. this had already a significant impact not just on our top line but more importantly that people and consumers start to see us again as a serious brand and as a brand that commands value Last but not least, as I said, both our in-line and non-in-line product range will decrease double-digit. The season where that will be coming into fruition will be the spring, summer 2027 season. A lot of measures that we talked about that are now already in place that will show up in the market in the seasons to come. We also have committed to focusing on streamlining our organization. The adjustments we've promised was about 20% of our white-collar positions reduced between 2025 and 2026. 500 of those positions have been reduced in the first half of 2025 within the so-called nextlevel program. One-third of the additional 900 positions we have reduced in the second half of last year. Last but not least, as I said, both our in-line and non-in-line product range will decrease double-digit. last but not least as i said both our in-line and non-in-line product range will decrease double-digit The season where that will be coming into fruition will be the spring, summer 2027 season. the season where that will be coming into fruition will be the spring summer 2027 season A lot of measures that we talked about that are now already in place that will show up in the market in the seasons to come. a lot of measures that we talked about that are now already in place that will show up in the market in the seasons to come We also have committed to focusing on streamlining our organization. we also have committed to focusing on streamlining our organization The adjustments we've promised was about 20% of our white-collar positions reduced between 2025 and 2026. 500 of those positions have been reduced in the first half of 2025 within the so-called nextlevel program. the adjustments we've promised was about 20% of our white-collar positions reduced between 2025 and 2026 500 of those positions have been reduced in the first half of 2025 within the so-called nextlevel program One-third of the additional 900 positions we have reduced in the second half of last year. one-third of the additional 900 positions we have reduced in the second half of last year That leaves another 2/3 of those 900 positions that we're actively engaging with at this point in time. We are committed, and we're executing to become a better, more streamlined, but also more efficient organization going forward. An organization is, of course, built on strong leadership, senior leadership that has the capabilities to transform this organization. What you see here on this chart is the already communicated new addition of Andreas Hubert as the Chief Operating Officer, as well as the extended responsibilities for Maria Valdes. Her role was transformed from being in charge in terms of products only, to now adding a responsibility for go-to-market and brand marketing to fulfill a new operating model that we, as an organization, will be carrying in the future. That leaves another 2/3 of those 900 positions that we're actively engaging with at this point in time. that leaves another 2/3 of those 900 positions that we're actively engaging with at this point in time We are committed, and we're executing to become a better, more streamlined, but also more efficient organization going forward. we are committed and we're executing to become a better more streamlined but also more efficient organization going forward An organization is, of course, built on strong leadership, senior leadership that has the capabilities to transform this organization. an organization is of course built on strong leadership senior leadership that has the capabilities to transform this organization What you see here on this chart is the already communicated new addition of Andreas Hubert as the Chief Operating Officer, as well as the extended responsibilities for Maria Valdes. what you see here on this chart is the already communicated new addition of andreas hubert as the chief operating officer as well as the extended responsibilities for maria valdes Her role was transformed from being in charge in terms of products only, to now adding a responsibility for go-to-market and brand marketing to fulfill a new operating model that we, as an organization, will be carrying in the future. her role was transformed from being in charge in terms of products only to now adding a responsibility for go-to-market and brand marketing to fulfill a new operating model that we as an organization will be carrying in the future You also see a significant amount of other changes that I will not go into detail today. They've also been announced over the last three to six months, basically. Allow me to briefly touch on that new brand and operating model. What is new, that we're basically bringing all the elements together that allow us to develop successful and promising and cut-through marketing stories and concepts in the future. That means brand marketing, product creation, and the go-to-market teams are all united under one team and will in the future, develop concepts and propositions right from the get-go, and they then take them also fully through into the sales and into the conversations with our customers and with our DTC colleagues. Under Maria's leadership, we have also restructured our categories with a full ownership proposition moving forward. You also see a significant amount of other changes that I will not go into detail today. you also see a significant amount of other changes that i will not go into detail today They've also been announced over the last three to six months, basically. they've also been announced over the last three to six months basically Allow me to briefly touch on that new brand and operating model. allow me to briefly touch on that new brand and operating model What is new, that we're basically bringing all the elements together that allow us to develop successful and promising and cut-through marketing stories and concepts in the future. what is new that we're basically bringing all the elements together that allow us to develop successful and promising and cut-through marketing stories and concepts in the future That means brand marketing, product creation, and the go-to-market teams are all united under one team and will in the future, develop concepts and propositions right from the get-go, and they then take them also fully through into the sales and into the conversations with our customers and with our DTC colleagues. that means brand marketing product creation and the go-to-market teams are all united under one team and will in the future develop concepts and propositions right from the get-go and they then take them also fully through into the sales and into the conversations with our customers and with our dtc colleagues Under Maria's leadership, we have also restructured our categories with a full ownership proposition moving forward. under maria's leadership we have also restructured our categories with a full ownership proposition moving forward We've also clearly called out what we say, the four priority, the four DNA categories for PUMA in the future. They will be Football, Rrunning, and Training, now as two separated categories that previously were homed under one leadership, and a focus on Sportstyle, which is the Select and the Prime business, which has been split from the core business. Clearly a commitment to growth and to growth across a global scale with a dedicated viewpoint on how we will show up as a brand in the future. Also, at the same time, we have developed a new go-to-market calendar that will come fully into provision for the spring, summer 2028 season. That means we're gonna have a more focused approach in terms of alignment internally and improved selling readiness, but also higher efficiencies when as a brand we go to market. We've also clearly called out what we say, the four priority, the four DNA categories for PUMA in the future. we've also clearly called out what we say the four priority the four dna categories for puma in the future They will be Football, Rrunning, and Training, now as two separated categories that previously were homed under one leadership, and a focus on Sportstyle, which is the Select and the Prime business, which has been split from the core business. they will be football rrunning and training now as two separated categories that previously were homed under one leadership and a focus on sportstyle which is the select and the prime business which has been split from the core business Clearly a commitment to growth and to growth across a global scale with a dedicated viewpoint on how we will show up as a brand in the future. clearly a commitment to growth and to growth across a global scale with a dedicated viewpoint on how we will show up as a brand in the future Also, at the same time, we have developed a new go-to-market calendar that will come fully into provision for the spring, summer 2028 season. also at the same time we have developed a new go-to-market calendar that will come fully into provision for the spring summer 2028 season That means we're gonna have a more focused approach in terms of alignment internally and improved selling readiness, but also higher efficiencies when as a brand we go to market. that means we're gonna have a more focused approach in terms of alignment internally and improved selling readiness but also higher efficiencies when as a brand we go to market The second significant change that we are undergoing at the moment is under the leadership of Matthias as our Chief Commercial Officer. We are going to transform our home region, Europe, from an organization that had a very small regional layer with seven different competencies and different cluster centers, which lets a very decentralized structure, duplicate a lot of efforts, and ultimately also a pretty inconsistent brand activation. In the future, as of later this year, we're gonna increase our regional layer, our European layer. We're gonna have three more streamlined clusters across central, north, and south, that also will mean in the future, we're gonna have more consistency, stronger efficiencies. There will be a regional ownership of the key growth levers and also allowing us for faster and more aligned decision-making. The second significant change that we are undergoing at the moment is under the leadership of Matthias as our Chief Commercial Officer. the second significant change that we are undergoing at the moment is under the leadership of matthias as our chief commercial officer We are going to transform our home region, Europe, from an organization that had a very small regional layer with seven different competencies and different cluster centers, which lets a very decentralized structure, duplicate a lot of efforts, and ultimately also a pretty inconsistent brand activation. we are going to transform our home region europe from an organization that had a very small regional layer with seven different competencies and different cluster centers which lets a very decentralized structure duplicate a lot of efforts and ultimately also a pretty inconsistent brand activation In the future, as of later this year, we're gonna increase our regional layer, our European layer. in the future as of later this year we're gonna increase our regional layer our european layer We're gonna have three more streamlined clusters across central, north, and south, that also will mean in the future, we're gonna have more consistency, stronger efficiencies. we're gonna have three more streamlined clusters across central north and south that also will mean in the future we're gonna have more consistency stronger efficiencies There will be a regional ownership of the key growth levers and also allowing us for faster and more aligned decision-making. there will be a regional ownership of the key growth levers and also allowing us for faster and more aligned decision-making These were some of the methods we talked about last year and the execution that was started, but of course, will transition into 2026. With that, I'll hand over to Markus to talk you through the results. These were some of the methods we talked about last year and the execution that was started, but of course, will transition into 2026. these were some of the methods we talked about last year and the execution that was started but of course will transition into 2026 With that, I'll hand over to Markus to talk you through the results. with that i'll hand over to markus to talk you through the results

Speaker 6: Thank you, Arthur, and hello to everybody from my side. Following Arthur's remarks, I will now walk you through the key financial metrics and explain how the Reset measures he outlined impacted PUMA's Q4 and full year results. On the top line, we saw a substantial currency-adjusted sales decline of nearly -21% in Q4, leading to a sales decline in full year 2025 of around 8%. Notable reduction in sales of around 8% was primarily attributable to our Reset measures initiated during the second half of 2025. Our Reset measures can be split up mainly into three buckets. The largest impact came from cancellations of undesirable business with wholesale partners in the Mass Merchant Space, followed by Inventory Takebacks and lower DTC Promotions to improve brand perception. Thank you, Arthur, and hello to everybody from my side. thank you arthur and hello to everybody from my side Following Arthur's remarks, I will now walk you through the key financial metrics and explain how the Reset measures he outlined impacted PUMA's Q4 and full year results. following arthur's remarks i will now walk you through the key financial metrics and explain how the reset measures he outlined impacted puma's q4 and full year results On the top line, we saw a substantial currency-adjusted sales decline of nearly -21% in Q4, leading to a sales decline in full year 2025 of around 8%. on the top line we saw a substantial currency-adjusted sales decline of nearly -21% in q4 leading to a sales decline in full year 2025 of around 8% Notable reduction in sales of around 8% was primarily attributable to our Reset measures initiated during the second half of 2025. notable reduction in sales of around 8% was primarily attributable to our reset measures initiated during the second half of 2025 Our Reset measures can be split up mainly into three buckets. our reset measures can be split up mainly into three buckets The largest impact came from cancellations of undesirable business with wholesale partners in the Mass Merchant Space, followed by Inventory Takebacks and lower DTC Promotions to improve brand perception. the largest impact came from cancellations of undesirable business with wholesale partners in the mass merchant space followed by inventory takebacks and lower dtc promotions to improve brand perception From a regional perspective, the Reset was particularly pronounced in Americas, especially in the U.S., EMEA, and China. Now, let's have a look at the sales breakdown by channel. Wholesale saw a decline of around 28% in Q4 due to significant takebacks to clear excess inventory in the channel, along with immediate actions to reduce exposure to mass merchants in North America and to phase out undesirable business in Latin America, EMEA, and Asia Pacific. In full year 2025, wholesale decreased by 13%. Direct-to-Consumer sales dropped 8% in Q4, with owned and operated stores down about 1% and e-commerce falling by 20% due to fewer promotions aimed at strengthening PUMA's brand. For the full year, DTC increased 3%, supported by both brick-and-mortar and e-commerce. From a regional perspective, the Reset was particularly pronounced in Americas, especially in the U.S., EMEA, and China. from a regional perspective the reset was particularly pronounced in americas especially in the u.s emea and china Now, let's have a look at the sales breakdown by channel. now let's have a look at the sales breakdown by channel Wholesale saw a decline of around 28% in Q4 due to significant takebacks to clear excess inventory in the channel, along with immediate actions to reduce exposure to mass merchants in North America and to phase out undesirable business in Latin America, EMEA, and Asia Pacific. wholesale saw a decline of around 28% in q4 due to significant takebacks to clear excess inventory in the channel along with immediate actions to reduce exposure to mass merchants in north america and to phase out undesirable business in latin america emea and asia pacific In full year 2025, wholesale decreased by 13%. in full year 2025 wholesale decreased by 13% Direct-to-Consumer sales dropped 8% in Q4, with owned and operated stores down about 1% and e-commerce falling by 20% due to fewer promotions aimed at strengthening PUMA's brand. direct-to-consumer sales dropped 8% in q4 with owned and operated stores down about 1% and e-commerce falling by 20% due to fewer promotions aimed at strengthening puma's brand For the full year, DTC increased 3%, supported by both brick-and-mortar and e-commerce. for the full year dtc increased 3% supported by both brick-and-mortar and e-commerce Correspondingly, the Q4 DTC share rose substantially to 41.1% from 35.5% in Q4 2024. For the full year, the DTC share increased to 32.4%. Moving on to the sales breakdown by regions. EMEA sales decreased by around 24% in Q4 and -7% in full year 2025. Lower sales were driven by a weaker wholesale performance due to the reduction of undesired business and inventory takebacks, as well as lower DTC business on the back of reduced promotions. In the Americas region, sales fell by 22% in the fourth quarter and by -10% on a full year basis. Correspondingly, the Q4 DTC share rose substantially to 41.1% from 35.5% in Q4 2024. correspondingly the q4 dtc share rose substantially to 41.1% from 35.5% in q4 2024 For the full year, the DTC share increased to 32.4%. for the full year the dtc share increased to 32.4% Moving on to the sales breakdown by regions. moving on to the sales breakdown by regions EMEA sales decreased by around 24% in Q4 and -7% in full year 2025. emea sales decreased by around 24% in q4 and -7% in full year 2025 Lower sales were driven by a weaker wholesale performance due to the reduction of undesired business and inventory takebacks, as well as lower DTC business on the back of reduced promotions. lower sales were driven by a weaker wholesale performance due to the reduction of undesired business and inventory takebacks as well as lower dtc business on the back of reduced promotions In the Americas region, sales fell by 22% in the fourth quarter and by -10% on a full year basis. in the americas region sales fell by 22% in the fourth quarter and by -10% on a full year basis The decline was mainly attributable to North America, where sales decreased by slightly more than 33% in Q4 and minus 19% in the full year as a result of the distribution cleanup in the mass merchant business in the U.S. Sales in Asia Pacific dropped by nearly 13% in Q4 and by 7% in full year 2025. This was mainly driven by a decline in the Greater China wholesale business, which was partially offset by robust growth in the direct-to-consumer channel. Overall, Greater China sales declined by almost 20% in Q4. From a product division perspective, footwear sales in Q4 decreased by around 25% due to a broad decline across most categories. Within footwear, we saw growth in the Sportstyle Prime and Select segment, driven by the Speedcat family, with particularly strong performance in the Asia Pacific region in the past quarter. The decline was mainly attributable to North America, where sales decreased by slightly more than 33% in Q4 and minus 19% in the full year as a result of the distribution cleanup in the mass merchant business in the U.S. the decline was mainly attributable to north america where sales decreased by slightly more than 33% in q4 and minus 19% in the full year as a result of the distribution cleanup in the mass merchant business in the u.s Sales in Asia Pacific dropped by nearly 13% in Q4 and by 7% in full year 2025. sales in asia pacific dropped by nearly 13% in q4 and by 7% in full year 2025 This was mainly driven by a decline in the Greater China wholesale business, which was partially offset by robust growth in the direct-to-consumer channel. this was mainly driven by a decline in the greater china wholesale business which was partially offset by robust growth in the direct-to-consumer channel Overall, Greater China sales declined by almost 20% in Q4. overall greater china sales declined by almost 20% in q4 From a product division perspective, footwear sales in Q4 decreased by around 25% due to a broad decline across most categories. from a product division perspective footwear sales in q4 decreased by around 25% due to a broad decline across most categories Within footwear, we saw growth in the Sportstyle Prime and Select segment, driven by the Speedcat family, with particularly strong performance in the Asia Pacific region in the past quarter. within footwear we saw growth in the sportstyle prime and select segment driven by the speedcat family with particularly strong performance in the asia pacific region in the past quarter However, the Training category remained resilient and delivered healthy growth. Despite an overall decrease in the Running category as a result of the distribution cleanup, performance running showed strong growth, driven by the success of the Velocity NITRO 4. Our Apparel sales fell 14% in Q4, reflecting widespread declines across categories. This was partially offset by growth in Training, with continued strong momentum in HYROX. Accessories decreased by 18% in the past quarter, mainly due to golf. On a full year basis, all product divisions declined in the high single digits. Moving on to the operating performance in the fourth quarter. Gross profit margin was down -7.5 percentage points, and I will elaborate a bit more on that development in just a minute. However, the Training category remained resilient and delivered healthy growth. however the training category remained resilient and delivered healthy growth Despite an overall decrease in the Running category as a result of the distribution cleanup, performance running showed strong growth, driven by the success of the Velocity NITRO 4. despite an overall decrease in the running category as a result of the distribution cleanup performance running showed strong growth driven by the success of the velocity nitro 4 Our Apparel sales fell 14% in Q4, reflecting widespread declines across categories. our apparel sales fell 14% in q4 reflecting widespread declines across categories This was partially offset by growth in Training, with continued strong momentum in HYROX . this was partially offset by growth in training with continued strong momentum in hyrox Accessories decreased by 18% in the past quarter, mainly due to golf. accessories decreased by 18% in the past quarter mainly due to golf On a full year basis, all product divisions declined in the high single digits. on a full year basis all product divisions declined in the high single digits Moving on to the operating performance in the fourth quarter. moving on to the operating performance in the fourth quarter Gross profit margin was down -7.5 percentage points, and I will elaborate a bit more on that development in just a minute. gross profit margin was down -7.5 percentage points and i will elaborate a bit more on that development in just a minute Royalty and commission income was up 36%, mainly due to a transition from a business partnership to a licensing agreement structure with United Legwear. Operating expenses, excluding one-time effects, fell by roughly 8% to EUR 887 million during the quarter. This decrease was driven by positive results from the cost efficiency program and reduced expenses in the DTC channel, which were a consequence of lower sales compared to the same quarter last year. Driven by lower sales and lower gross profit, Adjusted EBIT came in at -EUR 229 million, down EUR 315 million versus Q4 2024. One-time effects amounted to around EUR 79 million, mainly related to the cost efficiency program and a goodwill impairment. Royalty and commission income was up 36%, mainly due to a transition from a business partnership to a licensing agreement structure with United Legwear. royalty and commission income was up 36% mainly due to a transition from a business partnership to a licensing agreement structure with united legwear Operating expenses, excluding one-time effects, fell by roughly 8% to EUR 887 million during the quarter. operating expenses excluding one-time effects fell by roughly 8% to eur 887 million during the quarter This decrease was driven by positive results from the cost efficiency program and reduced expenses in the DTC channel, which were a consequence of lower sales compared to the same quarter last year. this decrease was driven by positive results from the cost efficiency program and reduced expenses in the dtc channel which were a consequence of lower sales compared to the same quarter last year Driven by lower sales and lower gross profit, Adjusted EBIT came in at -EUR 229 million, down EUR 315 million versus Q4 2024. driven by lower sales and lower gross profit adjusted ebit came in at -eur 229 million down eur 315 million versus q4 2024 One-time effects amounted to around EUR 79 million, mainly related to the cost efficiency program and a goodwill impairment. one-time effects amounted to around eur 79 million mainly related to the cost efficiency program and a goodwill impairment Reported EBIT, including one-time effects, was around -EUR 308 million, and our loss from continued operations came at a -EUR 335 million. As indicated, let's take a closer look at the gross profit margin in Q4. First and foremost, the drop was primarily attributable to increased promotions in the wholesale channel and inventory reserves, resulting from the distribution cleanup, both as a result of the Reset measures we commenced in the second half of 2025. We saw headwinds from unfavorable currency effects from Turkish lira, the US dollar, and the Argentine peso, as well as a slightly negative regional mix. These negative effects were partially offset by a favorable channel and product mix and slightly lower freight costs. Lower sourcing costs, including duties, were a tailwind and therefore more than offsetting the negative impact from U.S. Tariffs. Reported EBIT, including one-time effects, was around -EUR 308 million, and our loss from continued operations came at a -EUR 335 million. reported ebit including one-time effects was around -eur 308 million and our loss from continued operations came at a -eur 335 million As indicated, let's take a closer look at the gross profit margin in Q4. as indicated let's take a closer look at the gross profit margin in q4 First and foremost, the drop was primarily attributable to increased promotions in the wholesale channel and inventory reserves, resulting from the distribution cleanup, both as a result of the Reset measures we commenced in the second half of 2025. first and foremost the drop was primarily attributable to increased promotions in the wholesale channel and inventory reserves resulting from the distribution cleanup both as a result of the reset measures we commenced in the second half of 2025 We saw headwinds from unfavorable currency effects from Turkish lira, the US dollar, and the Argentine peso, as well as a slightly negative regional mix. we saw headwinds from unfavorable currency effects from turkish lira the us dollar and the argentine peso as well as a slightly negative regional mix These negative effects were partially offset by a favorable channel and product mix and slightly lower freight costs. these negative effects were partially offset by a favorable channel and product mix and slightly lower freight costs Lower sourcing costs, including duties, were a tailwind and therefore more than offsetting the negative impact from U.S. lower sourcing costs including duties were a tailwind and therefore more than offsetting the negative impact from u.s Tariffs. tariffs Looking at full year 2025 operating performance. The Gross Profit margin was down year-over-year by 260 basis points. I will dive deeper into the drivers in a minute. The Royalty and Commission Income increased by 4.4% to EUR 92 million. OpEx, excluding one-time effects, remained flat at around EUR 3.5 billion. I will give more color on that development shortly. Due to reduced sales and gross profit, Adjusted EBIT, excluding one-time effects, fell to minus EUR 166 million. We incurred one-time effects of around EUR 192 million. The reported EBIT came in at minus EUR 357 million. Loss from continuing operations came in at around minus EUR 644 million. Looking at full year 2025 operating performance. looking at full year 2025 operating performance The Gross Profit margin was down year-over-year by 260 basis points. the gross profit margin was down year-over-year by 260 basis points I will dive deeper into the drivers in a minute. i will dive deeper into the drivers in a minute The Royalty and Commission Income increased by 4.4% to EUR 92 million. the royalty and commission income increased by 4.4% to eur 92 million OpEx, excluding one-time effects, remained flat at around EUR 3.5 billion. opex excluding one-time effects remained flat at around eur 3.5 billion I will give more color on that development shortly. i will give more color on that development shortly Due to reduced sales and gross profit, Adjusted EBIT, excluding one-time effects, fell to minus EUR 166 million. due to reduced sales and gross profit adjusted ebit excluding one-time effects fell to minus eur 166 million We incurred one-time effects of around EUR 192 million. we incurred one-time effects of around eur 192 million The reported EBIT came in at minus EUR 357 million. the reported ebit came in at minus eur 357 million Loss from continuing operations came in at around minus EUR 644 million. loss from continuing operations came in at around minus eur 644 million In light of the net loss recorded in Fiscal Year 2025, and in order to maintain liquidity, the management board and the supervisory board of PUMA will propose at the 2026 Annual General Meeting that no dividend should be paid out for 2025. Turning to gross profit margin development in Fiscal Year 2025. Gross profit margin was down 260 basis points to 45%. On a full year level, increased promotions in the wholesale channel and inventory reserves represented the main headwind. We also saw negative currency effects impacting gross margin, mainly from Turkish lira, Argentinian peso, and Mexican peso. This was partially offset by a favorable channel and product mix, as well as reduced sourcing costs, including duties. We managed to limit the adverse impact of U.S. Tariffs to around EUR 30 million in 2025. In light of the net loss recorded in Fiscal Year 2025, and in order to maintain liquidity, the management board and the supervisory board of PUMA will propose at the 2026 Annual General Meeting that no dividend should be paid out for 2025. in light of the net loss recorded in fiscal year 2025 and in order to maintain liquidity the management board and the supervisory board of puma will propose at the 2026 annual general meeting that no dividend should be paid out for 2025 Turning to gross profit margin development in Fiscal Year 2025. turning to gross profit margin development in fiscal year 2025 Gross profit margin was down 260 basis points to 45%. gross profit margin was down 260 basis points to 45% On a full year level, increased promotions in the wholesale channel and inventory reserves represented the main headwind. on a full year level increased promotions in the wholesale channel and inventory reserves represented the main headwind We also saw negative currency effects impacting gross margin, mainly from Turkish lira, Argentinian peso, and Mexican peso. we also saw negative currency effects impacting gross margin mainly from turkish lira argentinian peso and mexican peso This was partially offset by a favorable channel and product mix, as well as reduced sourcing costs, including duties. this was partially offset by a favorable channel and product mix as well as reduced sourcing costs including duties We managed to limit the adverse impact of U.S. we managed to limit the adverse impact of u.s Tariffs to around EUR 30 million in 2025. tariffs to around eur 30 million in 2025 In 2026, we expect a substantial improvement versus 2025, especially due to lower promotions, including inventory reserves and a favorable channel mix. Let's take a closer look at OpEx and one-time effects, respectively. OpEx, excluding one-time effects, was flat at around EUR 3.5 billion. Both channel mix as the DTC share, especially e-commerce, increased from 28.9% to 32.4%. Other OpEx offset lower marketing expenses, as well as savings from the efficiency program. Looking at marketing expenses, I want to highlight that we deliberately did not reduce marketing expenses any further than we did. In constant currency, it even remained stable year-over-year, as we see this cost position as an essential lever to elevate brand perception. In 2026, we expect a substantial improvement versus 2025, especially due to lower promotions, including inventory reserves and a favorable channel mix. in 2026 we expect a substantial improvement versus 2025 especially due to lower promotions including inventory reserves and a favorable channel mix Let's take a closer look at OpEx and one-time effects, respectively. let's take a closer look at opex and one-time effects respectively OpEx, excluding one-time effects, was flat at around EUR 3.5 billion. opex excluding one-time effects was flat at around eur 3.5 billion Both channel mix as the DTC share, especially e-commerce, increased from 28.9% to 32.4%. both channel mix as the dtc share especially e-commerce increased from 28.9% to 32.4% Other OpEx offset lower marketing expenses, as well as savings from the efficiency program. other opex offset lower marketing expenses as well as savings from the efficiency program Looking at marketing expenses, I want to highlight that we deliberately did not reduce marketing expenses any further than we did. looking at marketing expenses i want to highlight that we deliberately did not reduce marketing expenses any further than we did In constant currency, it even remained stable year-over-year, as we see this cost position as an essential lever to elevate brand perception. in constant currency it even remained stable year-over-year as we see this cost position as an essential lever to elevate brand perception The OpEx includes higher depreciation and amortization costs resulting from investments in DTC and infrastructure, along with approximately EUR 30 million in accounts receivable write-offs precluded an OpEx decline. Due to significantly lower group sales, the OpEx ratio increased by 640 basis points to 48.5%. We recorded material one-time effects, mainly related to the cost efficiency program and goodwill impairments. Personnel expenses accounted for EUR 102 million. These expenses are linked to our cost efficiency program, targeting a global headcount reduction. Impairments were EUR 63 million related to goodwill impairments in Japan, Canada, as well as in digital infrastructure. Closing unprofitable stores and other non-operating costs reached EUR 27 million. Looking forward, we anticipated significantly less one-time effects than what we saw last year. These costs will mainly focus on personal expenses. The OpEx includes higher depreciation and amortization costs resulting from investments in DTC and infrastructure, along with approximately EUR 30 million in accounts receivable write-offs precluded an OpEx decline. the opex includes higher depreciation and amortization costs resulting from investments in dtc and infrastructure along with approximately eur 30 million in accounts receivable write-offs precluded an opex decline Due to significantly lower group sales, the OpEx ratio increased by 640 basis points to 48.5%. due to significantly lower group sales the opex ratio increased by 640 basis points to 48.5% We recorded material one-time effects, mainly related to the cost efficiency program and goodwill impairments. we recorded material one-time effects mainly related to the cost efficiency program and goodwill impairments Personnel expenses accounted for EUR 102 million. personnel expenses accounted for eur 102 million These expenses are linked to our cost efficiency program, targeting a global headcount reduction. these expenses are linked to our cost efficiency program targeting a global headcount reduction Impairments were EUR 63 million related to goodwill impairments in Japan, Canada, as well as in digital infrastructure. impairments were eur 63 million related to goodwill impairments in japan canada as well as in digital infrastructure Closing unprofitable stores and other non-operating costs reached EUR 27 million. closing unprofitable stores and other non-operating costs reached eur 27 million Looking forward, we anticipated significantly less one-time effects than what we saw last year. looking forward we anticipated significantly less one-time effects than what we saw last year These costs will mainly focus on personal expenses. these costs will mainly focus on personal expenses Overall, in 2026, we do not expect materially lower OpEx in absolute terms as we will continue to invest in our brand, as well as marketing, and expect stronger growth in DTC versus wholesale. Let me shed some more light on the drivers of the reported EBIT margin development. Reported EBIT margin was down from 6.5% in Fiscal Year 2024 to -4.9% in Fiscal Year 2025. The negative development in gross profit margin had an impact of -2.6 percentage points. The effect of royalty and commission income had a slightly positive impact of 20 basis points. While OpEx remained flat in absolute terms, the significant decrease in sales caused the OpEx ratio to rise by 6.4 percentage points. Overall, in 2026, we do not expect materially lower OpEx in absolute terms as we will continue to invest in our brand, as well as marketing, and expect stronger growth in DTC versus wholesale. overall in 2026 we do not expect materially lower opex in absolute terms as we will continue to invest in our brand as well as marketing and expect stronger growth in dtc versus wholesale Let me shed some more light on the drivers of the reported EBIT margin development. let me shed some more light on the drivers of the reported ebit margin development Reported EBIT margin was down from 6.5% in Fiscal Year 2024 to -4.9% in Fiscal Year 2025. reported ebit margin was down from 6.5% in fiscal year 2024 to -4.9% in fiscal year 2025 The negative development in gross profit margin had an impact of -2.6 percentage points. the negative development in gross profit margin had an impact of -2.6 percentage points The effect of royalty and commission income had a slightly positive impact of 20 basis points. the effect of royalty and commission income had a slightly positive impact of 20 basis points While OpEx remained flat in absolute terms, the significant decrease in sales caused the OpEx ratio to rise by 6.4 percentage points. while opex remained flat in absolute terms the significant decrease in sales caused the opex ratio to rise by 6.4 percentage points One-time effects of EUR 192 million also had a negative effect on margin of 2.6 percentage points. I would like to take a closer look at working capital. Inventories rose by 2% reported and 11% currency adjusted to around EUR 2.1 billion, partly driven by inventory takebacks from wholesale partners to clean up distribution. This was partially offset by deliberate decrease in purchase volume that we adopted as a strategy to moderate inventory expansion and prevent excess supply. Trade receivables decreased by around 27% to just over EUR 900 million, mainly due to a significant sales decrease in the fourth quarter. Trade payables decreased by 3% to EUR 1.3 billion, mainly reflecting reduced purchasing volume in the fourth quarter. One-time effects of EUR 192 million also had a negative effect on margin of 2.6 percentage points. one-time effects of eur 192 million also had a negative effect on margin of 2.6 percentage points I would like to take a closer look at working capital. i would like to take a closer look at working capital Inventories rose by 2% reported and 11% currency adjusted to around EUR 2.1 billion, partly driven by inventory takebacks from wholesale partners to clean up distribution. inventories rose by 2% reported and 11% currency adjusted to around eur 2.1 billion partly driven by inventory takebacks from wholesale partners to clean up distribution This was partially offset by deliberate decrease in purchase volume that we adopted as a strategy to moderate inventory expansion and prevent excess supply. this was partially offset by deliberate decrease in purchase volume that we adopted as a strategy to moderate inventory expansion and prevent excess supply Trade receivables decreased by around 27% to just over EUR 900 million, mainly due to a significant sales decrease in the fourth quarter. trade receivables decreased by around 27% to just over eur 900 million mainly due to a significant sales decrease in the fourth quarter Trade payables decreased by 3% to EUR 1.3 billion, mainly reflecting reduced purchasing volume in the fourth quarter. trade payables decreased by 3% to eur 1.3 billion mainly reflecting reduced purchasing volume in the fourth quarter Working capital overall exceeded EUR 1.5 billion, increasing by 20% against last year, and accounted for 21% of group sales, compared to about 15% in Fiscal Year 2024. Staying within working capital, let's take a closer look at the inventory development. Our inventory cleanup is slightly ahead of plan. We completed the majority of targeted takebacks, and you can see that Q4 inventory started to decline slightly against the level seen in Q3. The decline was mainly driven by active with inventory reduction measures, including clearance through factory outlets and selected wholesale partners, as well as a restatement effect related to United. We aim to further reduce inventories this year through our own factory outlets and wholesale partners, supported by targeted promotions and disciplined purchasing. We remain firmly committed to restoring inventories to normalized levels by the end of 2026. Working capital overall exceeded EUR 1.5 billion, increasing by 20% against last year, and accounted for 21% of group sales, compared to about 15% in Fiscal Year 2024. working capital overall exceeded eur 1.5 billion increasing by 20% against last year and accounted for 21% of group sales compared to about 15% in fiscal year 2024 Staying within working capital, let's take a closer look at the inventory development. staying within working capital let's take a closer look at the inventory development Our inventory cleanup is slightly ahead of plan. our inventory cleanup is slightly ahead of plan We completed the majority of targeted takebacks, and you can see that Q4 inventory started to decline slightly against the level seen in Q3. we completed the majority of targeted takebacks and you can see that q4 inventory started to decline slightly against the level seen in q3 The decline was mainly driven by active with inventory reduction measures, including clearance through factory outlets and selected wholesale partners, as well as a restatement effect related to United. the decline was mainly driven by active with inventory reduction measures including clearance through factory outlets and selected wholesale partners as well as a restatement effect related to united We aim to further reduce inventories this year through our own factory outlets and wholesale partners, supported by targeted promotions and disciplined purchasing. we aim to further reduce inventories this year through our own factory outlets and wholesale partners supported by targeted promotions and disciplined purchasing We remain firmly committed to restoring inventories to normalized levels by the end of 2026. we remain firmly committed to restoring inventories to normalized levels by the end of 2026 Let's move on to cash flow and a change in our cash position. We ended the year 2024 with around EUR 370 million of available cash. Due to negative earnings before taxes and increased net working capital, we ended Fiscal Year 2025 with a negative operating cash flow of around EUR 320 million. Investing cash flow through the CspEx of EUR 206 million, focused on digital infrastructure, investments in our DTC channels, and initiatives to strengthen long-term competitiveness. Our operating cash flow and in the investing cash flow summed up to a negative free cash flow of minus EUR 530 million. Financing cash flow amounted to around EUR 400 million and included around EUR 1 billion proceeds from additional financial liabilities to support the operating business and finance working capital. Let's move on to cash flow and a change in our cash position. let's move on to cash flow and a change in our cash position We ended the year 2024 with around EUR 370 million of available cash. we ended the year 2024 with around eur 370 million of available cash Due to negative earnings before taxes and increased net working capital, we ended Fiscal Year 2025 with a negative operating cash flow of around EUR 320 million. due to negative earnings before taxes and increased net working capital we ended fiscal year 2025 with a negative operating cash flow of around eur 320 million Investing cash flow through the CspEx of EUR 206 million, focused on digital infrastructure, investments in our DTC channels, and initiatives to strengthen long-term competitiveness. investing cash flow through the cspex of eur 206 million focused on digital infrastructure investments in our dtc channels and initiatives to strengthen long-term competitiveness Our operating cash flow and in the investing cash flow summed up to a negative free cash flow of minus EUR 530 million. our operating cash flow and in the investing cash flow summed up to a negative free cash flow of minus eur 530 million Financing cash flow amounted to around EUR 400 million and included around EUR 1 billion proceeds from additional financial liabilities to support the operating business and finance working capital. financing cash flow amounted to around eur 400 million and included around eur 1 billion proceeds from additional financial liabilities to support the operating business and finance working capital Overall, the cash flow development led to a decline in cash against last year, to EUR 290 million. In 2026, we expect our free cash flow to be positive. This brings us to net-debt development. The additional financial liabilities resulted in an increase in net debt to just over EUR 1 billion. End of 2025, we saw more financial headroom of EUR 1.5 billion, including a cash position of EUR 290 million, as shown before, and unutilized credit lines of around EUR 1.2 billion to invest in our strategic priorities. In February 2026, we were able to secure another private placement of EUR 100 million. With this additional financing instrument, we reduced the bridge facility from EUR 500 million to EUR 350 million and secured slightly more favorable financing conditions. Overall, the cash flow development led to a decline in cash against last year, to EUR 290 million. overall the cash flow development led to a decline in cash against last year to eur 290 million In 2026, we expect our free cash flow to be positive. in 2026 we expect our free cash flow to be positive This brings us to net- debt development. this brings us to net- debt development The additional financial liabilities resulted in an increase in net debt to just over EUR 1 billion. the additional financial liabilities resulted in an increase in net debt to just over eur 1 billion End of 2025, we saw more financial headroom of EUR 1.5 billion, including a cash position of EUR 290 million, as shown before, and unutilized credit lines of around EUR 1.2 billion to invest in our strategic priorities. end of 2025 we saw more financial headroom of eur 1.5 billion including a cash position of eur 290 million as shown before and unutilized credit lines of around eur 1.2 billion to invest in our strategic priorities In February 2026, we were able to secure another private placement of EUR 100 million. in february 2026 we were able to secure another private placement of eur 100 million With this additional financing instrument, we reduced the bridge facility from EUR 500 million to EUR 350 million and secured slightly more favorable financing conditions. with this additional financing instrument we reduced the bridge facility from eur 500 million to eur 350 million and secured slightly more favorable financing conditions The bridge facility was fully syndicated with our core banks. Given the currently elevated level of net debt, deleveraging is a clear priority, and we target to reduce net debt over the coming years. This concludes my remarks on the financials. I will now hand back to Arthur for the outlook for Fiscal Year 2026. The bridge facility was fully syndicated with our core banks. the bridge facility was fully syndicated with our core banks Given the currently elevated level of net debt, deleveraging is a clear priority, and we target to reduce net debt over the coming years. given the currently elevated level of net debt deleveraging is a clear priority and we target to reduce net debt over the coming years This concludes my remarks on the financials. this concludes my remarks on the financials I will now hand back to Arthur for the outlook for Fiscal Year 2026. i will now hand back to arthur for the outlook for fiscal year 2026

Speaker 3: Markus, thank you very much. Let's look forward into 2026, and I want to explain to you again why this year is a year of transition before company then will enter a growth period again. It's very important to realize that the recent measures will now need to be executed throughout the year of 2026. That means, for example, first and foremost, our ongoing efforts to clean up the marketplace and to be diligently working on the inventory liquidation will have a high priority for us. I've briefly talked about the new brand operating model, that between brand, product, and go-to-market, will fully show the effects in 2027, and to remain in sporting goods terms, that muscle needs to be trained throughout the 2026 calendar year. Markus, thank you very much. markus thank you very much Let's look forward into 2026, and I want to explain to you again why this year is a year of transition before company then will enter a growth period again. let's look forward into 2026 and i want to explain to you again why this year is a year of transition before company then will enter a growth period again It's very important to realize that the recent measures will now need to be executed throughout the year of 2026. it's very important to realize that the recent measures will now need to be executed throughout the year of 2026 That means, for example, first and foremost, our ongoing efforts to clean up the marketplace and to be diligently working on the inventory liquidation will have a high priority for us. that means for example first and foremost our ongoing efforts to clean up the marketplace and to be diligently working on the inventory liquidation will have a high priority for us I've briefly talked about the new brand operating model, that between brand, product, and go-to-market, will fully show the effects in 2027, and to remain in sporting goods terms, that muscle needs to be trained throughout the 2026 calendar year. i've briefly talked about the new brand operating model that between brand product and go-to-market will fully show the effects in 2027 and to remain in sporting goods terms that muscle needs to be trained throughout the 2026 calendar year We are also, of course, working on our high share of budgets that are allocated to long-term commitments. Reshaping our marketing working budgets to be most effective from a consumer and from a brand proposition perspective, remains a high priority for us. The organizational changes that I alluded to will of course, need to be executed and then reshaped throughout the year of 2026. Last but not least, you've notified that at the end of January, we do have a new strategic investor, with ANTA joining us throughout the year. That, of course, will mean a further transition, a further elaboration on how we're gonna set ourselves up as a brand, as a business moving forward. What remains content, however, is that our commitment, our North Star, to become a top three sports brand, remains unchallenged. We are also, of course, working on our high share of budgets that are allocated to long-term commitments. we are also of course working on our high share of budgets that are allocated to long-term commitments Reshaping our marketing working budgets to be most effective from a consumer and from a brand proposition perspective, remains a high priority for us. reshaping our marketing working budgets to be most effective from a consumer and from a brand proposition perspective remains a high priority for us The organizational changes that I alluded to will of course, need to be executed and then reshaped throughout the year of 2026. the organizational changes that i alluded to will of course need to be executed and then reshaped throughout the year of 2026 Last but not least, you've notified that at the end of January, we do have a new strategic investor, with ANTA joining us throughout the year. last but not least you've notified that at the end of january we do have a new strategic investor with anta joining us throughout the year That, of course, will mean a further transition, a further elaboration on how we're gonna set ourselves up as a brand, as a business moving forward. that of course will mean a further transition a further elaboration on how we're gonna set ourselves up as a brand as a business moving forward What remains content, however, is that our commitment, our North Star, to become a top three sports brand, remains unchallenged. what remains content however is that our commitment our north star to become a top three sports brand remains unchallenged We are very clear that is our ambition to return to above industry growth rates as of 2027, and to return to healthy profits in the same manner. Being a sports brand also means that we have a very clear idea, a very clear outlook in terms of how we wanna be perceived and how we wanna do this. It's important to say we're gonna be one global sports brand. A brand has a global footprint, a brand that has a global priority, and a brand that activates itself globally within the same manner and tone. We play this with two different or two distinct pillars, of course, an elevated proposition when it comes to our heritage of the 77 years of the archive, the great stories that we have achieved over the many decades in the sporting goods industry. We are very clear that is our ambition to return to above industry growth rates as of 2027, and to return to healthy profits in the same manner. we are very clear that is our ambition to return to above industry growth rates as of 2027 and to return to healthy profits in the same manner Being a sports brand also means that we have a very clear idea, a very clear outlook in terms of how we wanna be perceived and how we wanna do this. being a sports brand also means that we have a very clear idea a very clear outlook in terms of how we wanna be perceived and how we wanna do this It's important to say we're gonna be one global sports brand. it's important to say we're gonna be one global sports brand A brand has a global footprint, a brand that has a global priority, and a brand that activates itself globally within the same manner and tone. a brand has a global footprint a brand that has a global priority and a brand that activates itself globally within the same manner and tone We play this with two different or two distinct pillars, of course, an elevated proposition when it comes to our heritage of the 77 years of the archive, the great stories that we have achieved over the many decades in the sporting goods industry. we play this with two different or two distinct pillars of course an elevated proposition when it comes to our heritage of the 77 years of the archive the great stories that we have achieved over the many decades in the sporting goods industry At the same time, high attention to our innovations, to driving performance with athletes and teams alike across the globe, and making sure that PUMA is going to be seen as a sports brand that can help to innovate and can help to push boundaries in sports. 2026, I'm incredibly excited, of course, about the sports moments that are there to come and which we've achieved already. At the very beginning of the year, we had an all PUMA Final at the Africa Cup of Nations, where Senegal and Morocco were playing the final, and Senegal, for the 2nd time in a row, took the championship. Just a couple of weeks later, in Denmark, at the European Handball Championships, we had another all PUMA Final with Germany and Denmark playing in that game. At the same time, high attention to our innovations, to driving performance with athletes and teams alike across the globe, and making sure that PUMA is going to be seen as a sports brand that can help to innovate and can help to push boundaries in sports. 2026, I'm incredibly excited, of course, about the sports moments that are there to come and which we've achieved already. at the same time high attention to our innovations to driving performance with athletes and teams alike across the globe and making sure that puma is going to be seen as a sports brand that can help to innovate and can help to push boundaries in sports 2026 i'm incredibly excited of course about the sports moments that are there to come and which we've achieved already At the very beginning of the year, we had an all PUMA Final at the Africa Cup of Nations, where Senegal and Morocco were playing the final, and Senegal, for the 2nd time in a row, took the championship. at the very beginning of the year we had an all puma final at the africa cup of nations where senegal and morocco were playing the final and senegal for the 2nd time in a row took the championship Just a couple of weeks later, in Denmark, at the European Handball Championships, we had another all PUMA Final with Germany and Denmark playing in that game. just a couple of weeks later in denmark at the european handball championships we had another all puma final with germany and denmark playing in that game The title was won by Denmark, led by Mathias Gidsel, who is a key ambassador for PUMA in this sport. We're also extremely excited about our future propositions, our opportunities when it comes to Running, Long-distance running, and Marathons. Just a couple of days ago, there was a new European record set by Yann Schrub in a 10K race. That was the fifth fastest ever time globally recorded, actually. Moving on to HYROX. As I said already a couple of times, a key partnership for us that we extended in October for another five years. Will be a massive event happening in May in New York, and we're also equally excited about the World Championships in Stockholm later on this year. The comeback of Tyrese Haliburton in the NBA, performing and outperforming what he started until end of last year. The title was won by Denmark, led by Mathias Gidsel, who is a key ambassador for PUMA in this sport. the title was won by denmark led by mathias gidsel who is a key ambassador for puma in this sport We're also extremely excited about our future propositions, our opportunities when it comes to Running, Long-distance running, and Marathons. we're also extremely excited about our future propositions our opportunities when it comes to running long-distance running and marathons Just a couple of days ago, there was a new European record set by Yann Schrub in a 10K race. just a couple of days ago there was a new european record set by yann schrub in a 10k race That was the fifth fastest ever time globally recorded, actually. that was the fifth fastest ever time globally recorded actually Moving on to HYROX. moving on to hyrox As I said already a couple of times, a key partnership for us that we extended in October for another five years. as i said already a couple of times a key partnership for us that we extended in october for another five years Will be a massive event happening in May in New York, and we're also equally excited about the World Championships in Stockholm later on this year. will be a massive event happening in may in new york and we're also equally excited about the world championships in stockholm later on this year The comeback of Tyrese Haliburton in the NBA, performing and outperforming what he started until end of last year. the comeback of tyrese haliburton in the nba performing and outperforming what he started until end of last year Of course, the pending start of the Formula 1 season again, with McLaren as a new additional partner to our roster. To support that, we've had already several very exciting launches, product launches at the beginning of the year. Full sellout of the first ever handball personalized proposition with Mathias Gidsel. The HYROX family has finally gotten its own dedicated piece of footwear. For the first time ever, we have created a dedicated shoe, a dedicated piece of footwear that has started to sell last week already. The sell-out ratios and the response is absolutely phenomenal. Last but not least, in running, we continue to innovate with the Deviate NITRO Elite 4. Of course, the pending start of the Formula 1 season again, with McLaren as a new additional partner to our roster. of course the pending start of the formula 1 season again with mclaren as a new additional partner to our roster To support that, we've had already several very exciting launches, product launches at the beginning of the year. to support that we've had already several very exciting launches product launches at the beginning of the year Full sellout of the first ever handball personalized proposition with Mathias Gidsel. full sellout of the first ever handball personalized proposition with mathias gidsel The HYROX family has finally gotten its own dedicated piece of footwear. the hyrox family has finally gotten its own dedicated piece of footwear For the first time ever, we have created a dedicated shoe, a dedicated piece of footwear that has started to sell last week already. for the first time ever we have created a dedicated shoe a dedicated piece of footwear that has started to sell last week already The sell-out ratios and the response is absolutely phenomenal. the sell-out ratios and the response is absolutely phenomenal Last but not least, in running, we continue to innovate with the Deviate NITRO Elite 4. last but not least in running we continue to innovate with the deviate nitro elite 4 Three propositions that were all launched already or are being launched in the first quarter of the year, which will also give me a lot of confidence that NITRO, as the best running platform, as the best running proposition, will really start to break through in the world of sports. At the same time, we're of course also very concerned and very continuously working on connecting ourselves to culture and celebrating sports culture around the globe. We continue to believe in the prosperity of the Speedcat. We have had a really great activation period throughout the Paris Fashion Week with the Suede, which we believe will be the next iconic pillar in our roster for PUMA in the sports lifestyle area. We've also, in the background, continued to excite and innovate with collaborations that we believe will excite consumers around the globe. Three propositions that were all launched already or are being launched in the first quarter of the year, which will also give me a lot of confidence that NITRO, as the best running platform, as the best running proposition, will really start to break through in the world of sports. three propositions that were all launched already or are being launched in the first quarter of the year which will also give me a lot of confidence that nitro as the best running platform as the best running proposition will really start to break through in the world of sports At the same time, we're of course also very concerned and very continuously working on connecting ourselves to culture and celebrating sports culture around the globe. at the same time we're of course also very concerned and very continuously working on connecting ourselves to culture and celebrating sports culture around the globe We continue to believe in the prosperity of the Speedcat. we continue to believe in the prosperity of the speedcat We have had a really great activation period throughout the Paris Fashion Week with the Suede, which we believe will be the next iconic pillar in our roster for PUMA in the sports lifestyle area. we have had a really great activation period throughout the paris fashion week with the suede which we believe will be the next iconic pillar in our roster for puma in the sports lifestyle area We've also, in the background, continued to excite and innovate with collaborations that we believe will excite consumers around the globe. we've also in the background continued to excite and innovate with collaborations that we believe will excite consumers around the globe Many things have started to happen already to make sure with our brand moving forward, we're gonna elevate our game. The objectives for 2026 are pretty simple and pretty straightforward on this page. First and foremost, a continuation of the three-year transformation journey that we embarked upon last year. We will transform our company and our brand to succeed in the future with the measures that were outlined previously. It's our foremost goal to accelerate PUMA's brand momentum in order to achieve commercial success, and the first step here really has to be to drive our brand through the multitude of product launches, integrated storytelling, and a much more succinct go-to-market process to subsequently achieve commercial success. We also will shift towards a higher quality revenue with an improved focus on profitability. Many things have started to happen already to make sure with our brand moving forward, we're gonna elevate our game. many things have started to happen already to make sure with our brand moving forward we're gonna elevate our game The objectives for 2026 are pretty simple and pretty straightforward on this page. the objectives for 2026 are pretty simple and pretty straightforward on this page First and foremost, a continuation of the three-year transformation journey that we embarked upon last year. first and foremost a continuation of the three-year transformation journey that we embarked upon last year We will transform our company and our brand to succeed in the future with the measures that were outlined previously. we will transform our company and our brand to succeed in the future with the measures that were outlined previously It's our foremost goal to accelerate PUMA's brand momentum in order to achieve commercial success, and the first step here really has to be to drive our brand through the multitude of product launches, integrated storytelling, and a much more succinct go-to-market process to subsequently achieve commercial success. it's our foremost goal to accelerate puma's brand momentum in order to achieve commercial success and the first step here really has to be to drive our brand through the multitude of product launches integrated storytelling and a much more succinct go-to-market process to subsequently achieve commercial success We also will shift towards a higher quality revenue with an improved focus on profitability. we also will shift towards a higher quality revenue with an improved focus on profitability That also means that we operate in channels which allow for better profitability, which also allow for better pricing, and in our very own channels, reduced discounting policy. We're going to elevate the financial discipline, and we'll deliver reliable results as is promised ready in 2025. Last but not least, in order to win, we're going to continue to build a high-performing team around the world, not just from a structural perspective as I've outlined, but also by getting the best people into the jobs to do the job for PUMA moving forward. Now, let's take a look at 2026 and the outlook. What are the expectations and the underlying assumptions for this year? From a sales perspective, as for top line, we expect a constant currency sales decline in the low to mid-single-digit % range. That also means that we operate in channels which allow for better profitability, which also allow for better pricing, and in our very own channels, reduced discounting policy. that also means that we operate in channels which allow for better profitability which also allow for better pricing and in our very own channels reduced discounting policy We're going to elevate the financial discipline, and we'll deliver reliable results as is promised ready in 2025. we're going to elevate the financial discipline and we'll deliver reliable results as is promised ready in 2025 Last but not least, in order to win, we're going to continue to build a high-performing team around the world, not just from a structural perspective as I've outlined, but also by getting the best people into the jobs to do the job for PUMA moving forward. last but not least in order to win we're going to continue to build a high-performing team around the world not just from a structural perspective as i've outlined but also by getting the best people into the jobs to do the job for puma moving forward Now, let's take a look at 2026 and the outlook. now let's take a look at 2026 and the outlook What are the expectations and the underlying assumptions for this year? what are the expectations and the underlying assumptions for this year From a sales perspective, as for top line, we expect a constant currency sales decline in the low to mid-single-digit % range. from a sales perspective as for top line we expect a constant currency sales decline in the low to mid-single-digit % range FX headwinds are expected for around 3 percentage points. From a regional perspective, the primary driver for the sales decline will be reduced sales in North America, which is a further consequence of our strategy to streamline the distribution we've already initiated in 2025. On the other more positive side, sales will grow in Latin America, the Middle East, Africa, and India. ANTA's recent acquisition of 29% stake in our company will most likely negatively impact our business in Greater China in 2026. Nevertheless, we believe that this partnership will deliver substantial mid to long-term benefits for our brand and our company. With regards to sales channels, we anticipate a decrease in wholesale sales, while our direct-to-consumer business is expected to grow currency adjusted. We also do expect that the second half of 2026 will be stronger than the first half. FX headwinds are expected for around 3 percentage points. fx headwinds are expected for around 3 percentage points From a regional perspective, the primary driver for the sales decline will be reduced sales in North America, which is a further consequence of our strategy to streamline the distribution we've already initiated in 2025. from a regional perspective the primary driver for the sales decline will be reduced sales in north america which is a further consequence of our strategy to streamline the distribution we've already initiated in 2025 On the other more positive side, sales will grow in Latin America, the Middle East, Africa, and India. on the other more positive side sales will grow in latin america the middle east africa and india ANTA's recent acquisition of 29% stake in our company will most likely negatively impact our business in Greater China in 2026. anta's recent acquisition of 29% stake in our company will most likely negatively impact our business in greater china in 2026 Nevertheless, we believe that this partnership will deliver substantial mid to long-term benefits for our brand and our company. nevertheless we believe that this partnership will deliver substantial mid to long-term benefits for our brand and our company With regards to sales channels, we anticipate a decrease in wholesale sales, while our direct-to-consumer business is expected to grow currency adjusted. with regards to sales channels we anticipate a decrease in wholesale sales while our direct-to-consumer business is expected to grow currency adjusted We also do expect that the second half of 2026 will be stronger than the first half. we also do expect that the second half of 2026 will be stronger than the first half Additionally, sales in the first quarter of 2026 should align with our full-year outlook. To expected sales decline, our reported EBIT is forecasted to range between -EUR 50 million to -EUR 150 million. This includes one-time effects, which are projected to be significantly lower compared to last year. As Markus already mentioned, we also anticipate a substantial improvement in our gross margin, while OpEx are not expected to be materially lower in absolute terms as we continue to invest and strengthen our DTC channels. Finally, our CapEx is expected to come in at around EUR 200 million, and we'll focus mainly on our digital infrastructure and investments in our own channels. Additionally, sales in the first quarter of 2026 should align with our full-year outlook. additionally sales in the first quarter of 2026 should align with our full-year outlook To expected sales decline, our reported EBIT is forecasted to range between -EUR 50 million to -EUR 150 million. to expected sales decline our reported ebit is forecasted to range between -eur 50 million to -eur 150 million This includes one-time effects, which are projected to be significantly lower compared to last year. this includes one-time effects which are projected to be significantly lower compared to last year As Markus already mentioned, we also anticipate a substantial improvement in our gross margin, while OpEx are not expected to be materially lower in absolute terms as we continue to invest and strengthen our DTC channels. as markus already mentioned we also anticipate a substantial improvement in our gross margin while opex are not expected to be materially lower in absolute terms as we continue to invest and strengthen our dtc channels Finally, our CapEx is expected to come in at around EUR 200 million, and we'll focus mainly on our digital infrastructure and investments in our own channels. finally our capex is expected to come in at around eur 200 million and we'll focus mainly on our digital infrastructure and investments in our own channels I trust you've seen from us that we are engaged in building a strong foundation for this business and for this brand to then return to profitable growth in 2026. That year of transition is absolutely required for us to make the appropriate adjustments and to execute the promises which we've given in 2025. That being said, we're at the end of the presentation. I want to hand back to Manuel. Thank you. I trust you've seen from us that we are engaged in building a strong foundation for this business and for this brand to then return to profitable growth in 2026. i trust you've seen from us that we are engaged in building a strong foundation for this business and for this brand to then return to profitable growth in 2026 That year of transition is absolutely required for us to make the appropriate adjustments and to execute the promises which we've given in 2025. that year of transition is absolutely required for us to make the appropriate adjustments and to execute the promises which we've given in 2025 That being said, we're at the end of the presentation. that being said we're at the end of the presentation I want to hand back to Manuel. i want to hand back to manuel Thank you. thank you

Speaker 5: Thank you, Arthur. Thank you, Markus. We are now ready to start the Q&A session. Operator, please open the lines for questions. Thank you, Arthur. thank you arthur Thank you, Markus. thank you markus We are now ready to start the Q&A session. we are now ready to start the q&a session Operator, please open the lines for questions. operator please open the lines for questions

Speaker 7: Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star followed by two. If you're using speaker equipment today, please lift the handset before making your selections. Anyone who has a question may press star followed by one at this time. In the interest of time, please limit yourself to two questions only. One moment for the first question, please. The first question comes from the line of William Woods from Bernstein. Please go ahead. Ladies and gentlemen, at this time, we will begin the question and answer session. ladies and gentlemen at this time we will begin the question and answer session Anyone who wishes to ask a question may press star followed by one on their touchtone telephone. anyone who wishes to ask a question may press star followed by one on their touchtone telephone If you wish to remove yourself from the question queue, you may press star followed by two. if you wish to remove yourself from the question queue you may press star followed by two If you're using speaker equipment today, please lift the handset before making your selections. if you're using speaker equipment today please lift the handset before making your selections Anyone who has a question may press star followed by one at this time. anyone who has a question may press star followed by one at this time In the interest of time, please limit yourself to two questions only. in the interest of time please limit yourself to two questions only One moment for the first question, please. one moment for the first question please The first question comes from the line of William Woods from Bernstein. the first question comes from the line of william woods from bernstein Please go ahead. please go ahead

Speaker 12: Hi, good afternoon. The first question's on inventory and inventory clearance. When you look at how much inventory is still out there in wholesale channels, how much do you think is out there? Do you think there's still a way to go to clear that, some of that wholesale inventory? The second one is on, kind of kickstarting the brand heat and brand growth again. I suppose, how do you think about doing that, over the next six months? Is this something that you're going to start doing in kind of H2? What do you think we should be looking for in terms of seeing that inflection into H2 and into 2027? Thanks. Hi, good afternoon. hi good afternoon The first question's on inventory and inventory clearance. the first question's on inventory and inventory clearance When you look at how much inventory is still out there in wholesale channels, how much do you think is out there? when you look at how much inventory is still out there in wholesale channels how much do you think is out there Do you think there's still a way to go to clear that, some of that wholesale inventory? do you think there's still a way to go to clear that some of that wholesale inventory The second one is on, kind of kickstarting the brand heat and brand growth again. the second one is on kind of kickstarting the brand heat and brand growth again I suppose, how do you think about doing that, over the next six months? i suppose how do you think about doing that over the next six months Is this something that you're going to start doing in kind of H2? is this something that you're going to start doing in kind of h2 What do you think we should be looking for in terms of seeing that inflection into H2 and into 2027? what do you think we should be looking for in terms of seeing that inflection into h2 and into 2027 Thanks. thanks

Speaker 6: Thank you, William, for your questions. I will start with the first part, and then Arthur will answer on the brand momentum. Regarding inventory, I shared also in my prepared remarks, with the Reset in 2025, we've completed the majority of the targeted takebacks from the wholesale accounts. So that's where we've been making very good progress. On top of it, I think, as you've seen, I think that we are slightly ahead of plan. Also, with the development from Q3 to Q4, we've been making good progress as we reduced our purchase orders, as also Arthur outlined in the presentation, and of course, are targeting to further reduce the excess inventory through our own factory outlets and also selected wholesale partners. Thank you, William, for your questions. thank you william for your questions I will start with the first part, and then Arthur will answer on the brand momentum. i will start with the first part and then arthur will answer on the brand momentum Regarding inventory, I shared also in my prepared remarks, with the Reset in 2025, we've completed the majority of the targeted takebacks from the wholesale accounts. regarding inventory i shared also in my prepared remarks with the reset in 2025 we've completed the majority of the targeted takebacks from the wholesale accounts So that's where we've been making very good progress. so that's where we've been making very good progress On top of it, I think, as you've seen, I think that we are slightly ahead of plan. on top of it i think as you've seen i think that we are slightly ahead of plan Also, with the development from Q3 to Q4, we've been making good progress as we reduced our purchase orders, as also Arthur outlined in the presentation, and of course, are targeting to further reduce the excess inventory through our own factory outlets and also selected wholesale partners. also with the development from q3 to q4 we've been making good progress as we reduced our purchase orders as also arthur outlined in the presentation and of course are targeting to further reduce the excess inventory through our own factory outlets and also selected wholesale partners Rest assured, I think we are firmly committed also to come back to normalize inventory levels at the end of 2026. Rest assured, I think we are firmly committed also to come back to normalize inventory levels at the end of 2026. rest assured i think we are firmly committed also to come back to normalize inventory levels at the end of 2026

Speaker 3: Thanks, Markus, and yes, William, allow me to talk about the plans, how to increase our brand heat. We have not just reorganized our teams for future success in spring, summer 2027, but of course, we're taking immediate measures when it comes to 2026. The platforms that are provided for us are the World Cup in North America, of course, our partnership with HYROX, a much better communication, a much more succinct conversation about NITRO as a platform, and then engaging with our style audience differently. Some of those things, you've seen already happening around Paris, where we ignited a conversation around the Suede. We are going to be continuously focused on Speedcat as a second pillar when it comes to our style proposition. Thanks, Markus, and yes, William, allow me to talk about the plans, how to increase our brand heat. thanks markus and yes william allow me to talk about the plans how to increase our brand heat We have not just reorganized our teams for future success in spring, summer 2027, but of course, we're taking immediate measures when it comes to 2026. we have not just reorganized our teams for future success in spring summer 2027 but of course we're taking immediate measures when it comes to 2026 The platforms that are provided for us are the World Cup in North America, of course, our partnership with HYROX, a much better communication, a much more succinct conversation about NITRO as a platform, and then engaging with our style audience differently. the platforms that are provided for us are the world cup in north america of course our partnership with hyrox a much better communication a much more succinct conversation about nitro as a platform and then engaging with our style audience differently Some of those things, you've seen already happening around Paris, where we ignited a conversation around the Suede. some of those things you've seen already happening around paris where we ignited a conversation around the suede We are going to be continuously focused on Speedcat as a second pillar when it comes to our style proposition. we are going to be continuously focused on speedcat as a second pillar when it comes to our style proposition What you can expect also from a consumer perspective is a shift away from conventional, above-the-line media purchasing, to a much more grassroots, to much more personal conversation that will help us to also to engage with consumers more in the long term and more frequently than just sporadically popping up. You'll also see a highlighted conversation around products to make sure our consumers do understand what, for example, a great technology like NITRO will mean for them in the future and what benefit it can provide, versus just having a very generic conversation about running as a proposition. These are some of the things consumers can expect from us now, already, but definitely heading into the second half of this year. What you can expect also from a consumer perspective is a shift away from conventional, above-the-line media purchasing, to a much more grassroots, to much more personal conversation that will help us to also to engage with consumers more in the long term and more frequently than just sporadically popping up. what you can expect also from a consumer perspective is a shift away from conventional above-the-line media purchasing to a much more grassroots to much more personal conversation that will help us to also to engage with consumers more in the long term and more frequently than just sporadically popping up You'll also see a highlighted conversation around products to make sure our consumers do understand what, for example, a great technology like NITRO will mean for them in the future and what benefit it can provide, versus just having a very generic conversation about running as a proposition. you'll also see a highlighted conversation around products to make sure our consumers do understand what for example a great technology like nitro will mean for them in the future and what benefit it can provide versus just having a very generic conversation about running as a proposition These are some of the things consumers can expect from us now, already, but definitely heading into the second half of this year. these are some of the things consumers can expect from us now already but definitely heading into the second half of this year

Speaker 12: Understood. Thank you. Understood. understood Thank you. thank you

Speaker 7: Next question comes from the line of Warwick Okines from BNP Paribas. Please go ahead. Next question comes from the line of Warwick Okines from BNP Paribas. next question comes from the line of warwick okines from bnp paribas Please go ahead. please go ahead

Speaker 11: Thanks. Good afternoon, everyone. Two questions from me, please. Firstly, you're reducing your dependence on the undesirable wholesale, as you've described, but actually, through this inventory cleanup process, you're having to use mass merchants to help you clear. Does that hurt the brand in the short term? Second question is actually around ANTA. I mean, does it still make sense to hold a strategy update in Q2, given that you've got a new partner coming on board? Actually, if you don't mind, a sort of subset to that. You made a comment about China in your outlook and ANTA, and I didn't quite understand that. Perhaps you could elaborate. Thank you. Thanks. thanks Good afternoon, everyone. good afternoon everyone Two questions from me, please. two questions from me please Firstly, you're reducing your dependence on the undesirable wholesale, as you've described, but actually, through this inventory cleanup process, you're having to use mass merchants to help you clear. firstly you're reducing your dependence on the undesirable wholesale as you've described but actually through this inventory cleanup process you're having to use mass merchants to help you clear Does that hurt the brand in the short term? does that hurt the brand in the short term Second question is actually around ANTA. second question is actually around anta I mean, does it still make sense to hold a strategy update in Q2, given that you've got a new partner coming on board? i mean does it still make sense to hold a strategy update in q2 given that you've got a new partner coming on board Actually, if you don't mind, a sort of subset to that. actually if you don't mind a sort of subset to that You made a comment about China in your outlook and ANTA, and I didn't quite understand that. you made a comment about china in your outlook and anta and i didn't quite understand that Perhaps you could elaborate. perhaps you could elaborate Thank you. thank you

Speaker 3: Okay. Thank you very much for those questions. I'll start with the inventory cleaning. We have taken a significant amount of inventory back. That doesn't mean we're then gonna relaunch them in the market with mass merchants. We have, of course, engaged with wholesale partners on those inventories, on those packs, and we have a dedicated plan in place with our very own channels to gradually, throughout the year, liquidate that inventory, fulfill the promise that Markus was alluding to, that our inventories, by the end of this year, will be on a level playing field again. Secondly, very good question regarding the strategy update. Okay. okay Thank you very much for those questions. thank you very much for those questions I'll start with the inventory cleaning. i'll start with the inventory cleaning We have taken a significant amount of inventory back. we have taken a significant amount of inventory back That doesn't mean we're then gonna relaunch them in the market with mass merchants. that doesn't mean we're then gonna relaunch them in the market with mass merchants We have, of course, engaged with wholesale partners on those inventories, on those packs, and we have a dedicated plan in place with our very own channels to gradually, throughout the year, liquidate that inventory, fulfill the promise that Markus was alluding to, that our inventories, by the end of this year, will be on a level playing field again. we have of course engaged with wholesale partners on those inventories on those packs and we have a dedicated plan in place with our very own channels to gradually throughout the year liquidate that inventory fulfill the promise that markus was alluding to that our inventories by the end of this year will be on a level playing field again Secondly, very good question regarding the strategy update. secondly very good question regarding the strategy update Yes, we have initially talked about having a full strategy update for Q2, but as you've alluded to, with a new partner coming on board, it is more than important for us to fully assess the new factors, the new opportunities that this partnership will bring to us, and therefore, instead of giving you a full strategy update, we are committed to updating you on our progress as we go through the upcoming quarter reports. We'll, of course, discuss with our future partner, more long-term ambition and more long-term strategy as we go along. Thank you very much. To your third question, the impact on China that I was alluding to, let me just put this into perspective. Our business in China is just shy of around about EUR 500 million in 2025. Yes, we have initially talked about having a full strategy update for Q2, but as you've alluded to, with a new partner coming on board, it is more than important for us to fully assess the new factors, the new opportunities that this partnership will bring to us, and therefore, instead of giving you a full strategy update, we are committed to updating you on our progress as we go through the upcoming quarter reports. yes we have initially talked about having a full strategy update for q2 but as you've alluded to with a new partner coming on board it is more than important for us to fully assess the new factors the new opportunities that this partnership will bring to us and therefore instead of giving you a full strategy update we are committed to updating you on our progress as we go through the upcoming quarter reports We'll, of course, discuss with our future partner, more long-term ambition and more long-term strategy as we go along. we'll of course discuss with our future partner more long-term ambition and more long-term strategy as we go along Thank you very much. thank you very much To your third question, the impact on China that I was alluding to, let me just put this into perspective. to your third question the impact on china that i was alluding to let me just put this into perspective Our business in China is just shy of around about EUR 500 million in 2025. our business in china is just shy of around about eur 500 million in 2025 The split of our business in China is reverse than it is globally. About 70% of our business, we do in DTC channels and 30% is in wholesale, primarily with franchise partners. Our Greater China wholesale business, we do, of course, have ongoing commitments with our wholesale partners. As ANTA enters as a strategic partner, and we're very grateful for that, it does bring a unique DTC approach. Our partners do anticipate that PUMA's distribution model might shift in the future towards a more DTC-led share versus where we are today. These anticipated results might lead to commitments with our wholesale partners not being extended, such, for example, as new store openings, renovations, or even their ordering. We expect this to lead to a negative impact in our Greater China business in 2026, as these commitments might not be extended. The split of our business in China is reverse than it is globally. the split of our business in china is reverse than it is globally About 70% of our business, we do in DTC channels and 30% is in wholesale, primarily with franchise partners. about 70% of our business we do in dtc channels and 30% is in wholesale primarily with franchise partners Our Greater China wholesale business, we do, of course, have ongoing commitments with our wholesale partners. our greater china wholesale business we do of course have ongoing commitments with our wholesale partners As ANTA enters as a strategic partner, and we're very grateful for that, it does bring a unique DTC approach. as anta enters as a strategic partner and we're very grateful for that it does bring a unique dtc approach Our partners do anticipate that PUMA's distribution model might shift in the future towards a more DTC-led share versus where we are today. our partners do anticipate that puma's distribution model might shift in the future towards a more dtc-led share versus where we are today These anticipated results might lead to commitments with our wholesale partners not being extended, such, for example, as new store openings, renovations, or even their ordering. these anticipated results might lead to commitments with our wholesale partners not being extended such for example as new store openings renovations or even their ordering We expect this to lead to a negative impact in our Greater China business in 2026, as these commitments might not be extended. we expect this to lead to a negative impact in our greater china business in 2026 as these commitments might not be extended We do anticipate that the medium to long-term benefits for us are significantly outweighing those short-term volatility. In collaboration with the strategic partner, we're also presenting unparalleled expertise in the region. We are positioned to access one of the largest sports markets globally and differentiate ourselves over the medium to long term. In our outlook in 2026, a potential short-term impact on our wholesale business is assumed and reflected in both sales and profitability. We do anticipate that the medium to long-term benefits for us are significantly outweighing those short-term volatility. we do anticipate that the medium to long-term benefits for us are significantly outweighing those short-term volatility In collaboration with the strategic partner, we're also presenting unparalleled expertise in the region. in collaboration with the strategic partner we're also presenting unparalleled expertise in the region We are positioned to access one of the largest sports markets globally and differentiate ourselves over the medium to long term. we are positioned to access one of the largest sports markets globally and differentiate ourselves over the medium to long term In our outlook in 2026, a potential short-term impact on our wholesale business is assumed and reflected in both sales and profitability. in our outlook in 2026 a potential short-term impact on our wholesale business is assumed and reflected in both sales and profitability

Speaker 11: That's really helpful. Thank you so much. That's really helpful. that's really helpful Thank you so much. thank you so much

Speaker 7: The next question comes from the line of Anne-Laure Bismuth from HSBC. Please go ahead. The next question comes from the line of Anne-Laure Bismuth from HSBC. the next question comes from the line of anne-laure bismuth from hsbc Please go ahead. please go ahead

Speaker 2: Yes. Hi, good afternoon. Thank you for taking my two questions. I will start with the first one about the fact that you used to be the go-to brand for the Formula 1 or the lifestyle basketball, given the increase in the competition, particularly in Formula 1, on which category can you differentiate yourself versus the competition? My second question is about the right sizing of the wholesale distribution. How far are you in the process? You talk about a double-digit decline in the U.S., will you also rightsize wholesales in other region? What do you see as a healthy balance between B2C and wholesale for the group going forward? Thank you very much. Yes. yes Hi, good afternoon. hi good afternoon Thank you for taking my two questions. thank you for taking my two questions I will start with the first one about the fact that you used to be the go-to brand for the Formula 1 or the lifestyle basketball, given the increase in the competition, particularly in Formula 1, on which category can you differentiate yourself versus the competition? i will start with the first one about the fact that you used to be the go-to brand for the formula 1 or the lifestyle basketball given the increase in the competition particularly in formula 1 on which category can you differentiate yourself versus the competition My second question is about the right sizing of the wholesale distribution. my second question is about the right sizing of the wholesale distribution How far are you in the process? how far are you in the process You talk about a double-digit decline in the U.S., will you also rightsize wholesales in other region? you talk about a double-digit decline in the u.s will you also rightsize wholesales in other region What do you see as a healthy balance between B2C and wholesale for the group going forward? what do you see as a healthy balance between b2c and wholesale for the group going forward Thank you very much. thank you very much

Speaker 3: Thanks for the question, Anne-Laure. Let me start with our focus on which categories we are going to differentiate ourselves. First and foremost, as I said, NITRO, as the best platform in performance running, is a key differentiator for us. From a results perspective, from a testing perspective, we are far outperforming competition there at the moment. We'll definitely also differentiate ourselves in the space of training with a unique partnership that is HYROX, an exclusive partnership that we've extended over the last five years, and that will be unrivaled, and no one else in the sporting goods industry can compete and match against that. Thanks for the question, Anne-Laure. thanks for the question anne-laure Let me start with our focus on which categories we are going to differentiate ourselves. let me start with our focus on which categories we are going to differentiate ourselves First and foremost, as I said, NITRO, as the best platform in performance running, is a key differentiator for us. first and foremost as i said nitro as the best platform in performance running is a key differentiator for us From a results perspective, from a testing perspective, we are far outperforming competition there at the moment. from a results perspective from a testing perspective we are far outperforming competition there at the moment We'll definitely also differentiate ourselves in the space of training with a unique partnership that is HYROX, an exclusive partnership that we've extended over the last five years, and that will be unrivaled, and no one else in the sporting goods industry can compete and match against that. we'll definitely also differentiate ourselves in the space of training with a unique partnership that is hyrox an exclusive partnership that we've extended over the last five years and that will be unrivaled and no one else in the sporting goods industry can compete and match against that I would also like to point out, because you said Formula 1, that we're of course not just giving up our giving up our competitive advantage, because we will add with McLaren the winning the defending championship champion both in constructors but also in the individual titles. Next to Ferrari and Aston Martin, I would say an unrivaled positioning. In the other categories that I don't know well, deeper on, of course, we're looking at competitive advantages versus other sporting goods players in there. I'm very confident, specifically with the three platforms I've mentioned previously, that we have a very promising roster for us to differentiate ourselves as a brand and to create a brand heat moving forward. Second question was about right sizing of wholesale in other regions. I would also like to point out, because you said Formula 1, that we're of course not just giving up our giving up our competitive advantage, because we will add with McLaren the winning the defending championship champion both in constructors but also in the individual titles. i would also like to point out because you said formula 1 that we're of course not just giving up our giving up our competitive advantage because we will add with mclaren the winning the defending championship champion both in constructors but also in the individual titles Next to Ferrari and Aston Martin, I would say an unrivaled positioning. next to ferrari and aston martin i would say an unrivaled positioning In the other categories that I don't know well, deeper on, of course, we're looking at competitive advantages versus other sporting goods players in there. in the other categories that i don't know well deeper on of course we're looking at competitive advantages versus other sporting goods players in there I'm very confident, specifically with the three platforms I've mentioned previously, that we have a very promising roster for us to differentiate ourselves as a brand and to create a brand heat moving forward. i'm very confident specifically with the three platforms i've mentioned previously that we have a very promising roster for us to differentiate ourselves as a brand and to create a brand heat moving forward Second question was about right sizing of wholesale in other regions. second question was about right sizing of wholesale in other regions The effort that we have started was not just focusing on North America, where we most likely have the highest exposure to mass merchants. Effort was started everywhere across the globe. We are working with Matthias' team on a very clear and globally consistent parameter, segmentation parameter when it comes to wholesale customers, and we're also making sure that with our future efforts, our wholesale business remains healthy. That means we have, as we've communicated last time, proactively reduced purchase orders for the early half of 2026. At the same time, with the measures I've just mentioned a few minutes ago, we are keen to grow in the better wholesale channels, the branded wholesale channels, where we can also appear as a premium brand and command full price sell-throughs. The effort that we have started was not just focusing on North America, where we most likely have the highest exposure to mass merchants. the effort that we have started was not just focusing on north america where we most likely have the highest exposure to mass merchants Effort was started everywhere across the globe. effort was started everywhere across the globe We are working with Matthias' team on a very clear and globally consistent parameter, segmentation parameter when it comes to wholesale customers, and we're also making sure that with our future efforts, our wholesale business remains healthy. we are working with matthias' team on a very clear and globally consistent parameter segmentation parameter when it comes to wholesale customers and we're also making sure that with our future efforts our wholesale business remains healthy That means we have, as we've communicated last time, proactively reduced purchase orders for the early half of 2026. that means we have as we've communicated last time proactively reduced purchase orders for the early half of 2026 At the same time, with the measures I've just mentioned a few minutes ago, we are keen to grow in the better wholesale channels, the branded wholesale channels, where we can also appear as a premium brand and command full price sell-throughs. at the same time with the measures i've just mentioned a few minutes ago we are keen to grow in the better wholesale channels the branded wholesale channels where we can also appear as a premium brand and command full price sell-throughs The last question, I think, was relating to an ideal or healthy mix. I think the proximity of what the industry overall at the moment is positioned in is a 60/40 split, 60% wholesale, healthy wholesale business, and 40% DTC will also be the areas we will be landing on as a brand in the future. Thank you. The last question, I think, was relating to an ideal or healthy mix. the last question i think was relating to an ideal or healthy mix I think the proximity of what the industry overall at the moment is positioned in is a 60/40 split, 60% wholesale, healthy wholesale business, and 40% DTC will also be the areas we will be landing on as a brand in the future. i think the proximity of what the industry overall at the moment is positioned in is a 60/40 split 60% wholesale healthy wholesale business and 40% dtc will also be the areas we will be landing on as a brand in the future Thank you. thank you

Speaker 7: The next question comes from the line of Jürgen Kolb from Kepler Cheuvreux. Please go ahead. The next question comes from the line of Jürgen Kolb from Kepler Cheuvreux. the next question comes from the line of jürgen kolb from kepler cheuvreux Please go ahead. please go ahead

Speaker 4: Yes, very good. Thanks very much. Two questions, really. First one on the previous question, really, the breakdown. Arthur, you mentioned 60/40. Within this 40%, where do you see the digital contribution? In this respect as well, I think you were targeting to hire a dedicated manager for your digital business. Has that already been done? The second thing is, maybe a little bit longer term out, as you and the whole team has obviously gone through the numbers and the strategies and what have you. Longer term view, gross profit margin potential, what do you think is possible for this group when you target more of the better distribution channels, less discounting, maybe a little bit better distribution mix? Yes, very good. yes very good Thanks very much. thanks very much Two questions, really. two questions really First one on the previous question, really, the breakdown. first one on the previous question really the breakdown Arthur, you mentioned 60/40. arthur you mentioned 60/40 Within this 40%, where do you see the digital contribution? within this 40% where do you see the digital contribution In this respect as well, I think you were targeting to hire a dedicated manager for your digital business. in this respect as well i think you were targeting to hire a dedicated manager for your digital business Has that already been done? has that already been done The second thing is, maybe a little bit longer term out, as you and the whole team has obviously gone through the numbers and the strategies and what have you. the second thing is maybe a little bit longer term out as you and the whole team has obviously gone through the numbers and the strategies and what have you Longer term view, gross profit margin potential, what do you think is possible for this group when you target more of the better distribution channels, less discounting, maybe a little bit better distribution mix? longer term view gross profit margin potential what do you think is possible for this group when you target more of the better distribution channels less discounting maybe a little bit better distribution mix When we're talking about a stronger focus on higher priced products, just your thoughts as to what you think could be possible in a longer term perspective. Thank you. When we're talking about a stronger focus on higher priced products, just your thoughts as to what you think could be possible in a longer term perspective. when we're talking about a stronger focus on higher priced products just your thoughts as to what you think could be possible in a longer term perspective Thank you. thank you

Speaker 3: Thank you very much, Jürgen. I'll take the first part, and then Markus will elaborate a little bit on the second part. Of course, as he said, those are connected to each other. From a DTC and specifically from an e-commerce perspective, yes, we do anticipate higher, significantly higher growth rates in our e-commerce business. That's why we also said from a CapEx perspective, we are going to invest, over-invest in our digital capabilities as a company, which to a large degree, will of course benefit our digital platforms and our digital business moving forward. We do see PUMA at the moment underpenetrated versus competition, but also underpenetrated within our own ecosystem. Thank you very much, Jürgen. thank you very much jürgen I'll take the first part, and then Markus will elaborate a little bit on the second part. i'll take the first part and then markus will elaborate a little bit on the second part Of course, as he said, those are connected to each other. of course as he said those are connected to each other From a DTC and specifically from an e-commerce perspective, yes, we do anticipate higher, significantly higher growth rates in our e-commerce business. from a dtc and specifically from an e-commerce perspective yes we do anticipate higher significantly higher growth rates in our e-commerce business That's why we also said from a CapEx perspective, we are going to invest, over-invest in our digital capabilities as a company, which to a large degree, will of course benefit our digital platforms and our digital business moving forward. that's why we also said from a capex perspective we are going to invest over-invest in our digital capabilities as a company which to a large degree will of course benefit our digital platforms and our digital business moving forward We do see PUMA at the moment underpenetrated versus competition, but also underpenetrated within our own ecosystem. we do see puma at the moment underpenetrated versus competition but also underpenetrated within our own ecosystem The position of the global VP of e-commerce, sorry, e-commerce, a role that we've split recently, we are making significant progress, and I'm pretty confident that in the next few weeks, we can also give you an update in that regard. The position of the global VP of e-commerce, sorry, e-commerce, a role that we've split recently, we are making significant progress, and I'm pretty confident that in the next few weeks, we can also give you an update in that regard. the position of the global vp of e-commerce sorry e-commerce a role that we've split recently we are making significant progress and i'm pretty confident that in the next few weeks we can also give you an update in that regard

Speaker 6: Jürgen, thank you for your second question. Let me start with walking you through what are the gross profit margin drivers also for 2026. We also, as we shared in the prepared remarks, I think we expecting a substantial improvement in our gross profit margin in 2026. Mainly driven by, of course, as low promotions and of course, also the change in inventory reserves. In terms of the overall, and I think your question was also going beyond 2026, looking at the midterm development, we will provide more information on midterm targets in due course and take, of course, the recent developments, and I think then also now on the shareholder side, I think as Arthur also mentioned earlier, into account, and include this in our discussion. Jürgen, thank you for your second question. jürgen thank you for your second question Let me start with walking you through what are the gross profit margin drivers also for 2026. let me start with walking you through what are the gross profit margin drivers also for 2026 We also, as we shared in the prepared remarks, I think we expecting a substantial improvement in our gross profit margin in 2026. we also as we shared in the prepared remarks i think we expecting a substantial improvement in our gross profit margin in 2026 Mainly driven by, of course, as low promotions and of course, also the change in inventory reserves. mainly driven by of course as low promotions and of course also the change in inventory reserves In terms of the overall, and I think your question was also going beyond 2026, looking at the midterm development, we will provide more information on midterm targets in due course and take, of course, the recent developments, and I think then also now on the shareholder side, I think as Arthur also mentioned earlier, into account, and include this in our discussion. in terms of the overall and i think your question was also going beyond 2026 looking at the midterm development we will provide more information on midterm targets in due course and take of course the recent developments and i think then also now on the shareholder side i think as arthur also mentioned earlier into account and include this in our discussion Coming out of the Reset, I think in 2025, it's not prudent to provide a midterm target or ambitions at this point in time. Coming out of the Reset, I think in 2025, it's not prudent to provide a midterm target or ambitions at this point in time. coming out of the reset i think in 2025 it's not prudent to provide a midterm target or ambitions at this point in time

Speaker 4: Got it. Thank you very much. Got it. got it Thank you very much. thank you very much

Speaker 6: Welcome. Welcome. welcome

Speaker 7: The next question comes from the line of Thierry Cota from Bank of America. Please go ahead. The next question comes from the line of Thierry Cota from Bank of America. the next question comes from the line of thierry cota from bank of america Please go ahead. please go ahead

Speaker 10: Yes, good afternoon, gentlemen. Thank you very much for taking my questions. First of all, on the takebacks, please, could you give us the amount of takebacks that were realized last year in million euros in the second half? What was the organic growth rate ex takebacks in Q4? Secondly, Arthur, I didn't fully understand what you said regarding 2027 targets when you said healthy profitability should evolve in the same manner. I'm quoting what you said. I think you've been extremely clear on the growth and the idea of growing faster than the industry, which I think you put last time we talked at about 5% growth, so above that. On healthy profitability, where do you place it for next year and going forward, please? Thank you. Yes, good afternoon, gentlemen. yes good afternoon gentlemen Thank you very much for taking my questions. thank you very much for taking my questions First of all, on the takebacks, please, could you give us the amount of takebacks that were realized last year in million euros in the second half? first of all on the takebacks please could you give us the amount of takebacks that were realized last year in million euros in the second half What was the organic growth rate ex takebacks in Q4? what was the organic growth rate ex takebacks in q4 Secondly, Arthur, I didn't fully understand what you said regarding 2027 targets when you said healthy profitability should evolve in the same manner. secondly arthur i didn't fully understand what you said regarding 2027 targets when you said healthy profitability should evolve in the same manner I'm quoting what you said. i'm quoting what you said I think you've been extremely clear on the growth and the idea of growing faster than the industry, which I think you put last time we talked at about 5% growth, so above that. i think you've been extremely clear on the growth and the idea of growing faster than the industry which i think you put last time we talked at about 5% growth so above that On healthy profitability, where do you place it for next year and going forward, please? on healthy profitability where do you place it for next year and going forward please Thank you. thank you

Speaker 6: Thank you for your questions. Looking at the first chart, I think going back to your inventory takebacks and also that you understand the magnitude of the Reset. In the financial parts, the first chart that I shared also gave you an illustrative indication that our sales decline on a currency-adjusted basis for the full year 2025 is mainly driven by the Reset initiatives. From the Reset initiatives, the reduction of the undesirable business has the biggest impact, then followed by the takebacks and of course, the reduced promotions. These three, of course, also factors and those key drivers also of the Reset, of course, impacted also our fourth quarter results in 2025. Thank you for your questions. thank you for your questions Looking at the first chart, I think going back to your inventory takebacks and also that you understand the magnitude of the Reset. looking at the first chart i think going back to your inventory takebacks and also that you understand the magnitude of the reset In the financial parts, the first chart that I shared also gave you an illustrative indication that our sales decline on a currency-adjusted basis for the full year 2025 is mainly driven by the Reset initiatives. in the financial parts the first chart that i shared also gave you an illustrative indication that our sales decline on a currency-adjusted basis for the full year 2025 is mainly driven by the reset initiatives From the Reset initiatives, the reduction of the undesirable business has the biggest impact, then followed by the takebacks and of course, the reduced promotions. from the reset initiatives the reduction of the undesirable business has the biggest impact then followed by the takebacks and of course the reduced promotions These three, of course, also factors and those key drivers also of the Reset, of course, impacted also our fourth quarter results in 2025. these three of course also factors and those key drivers also of the reset of course impacted also our fourth quarter results in 2025

Speaker 3: Let me allude to the 2027 comments I've made. We do expect to grow above the industry average at that point in time. That, without having a crystal ball, should be something in the low single digits to mid single digits, and we are committed to develop our plans and therefore also guide around that one. From a profitability perspective, yes, we will be turning into a healthy company again as of 2027 and beyond. At this point in time, I would not make any comments in terms of where that will be exactly, and I hope and I trust you would understand that at this point in time. Let me allude to the 2027 comments I've made. let me allude to the 2027 comments i've made We do expect to grow above the industry average at that point in time. we do expect to grow above the industry average at that point in time That, without having a crystal ball, should be something in the low single digits to mid single digits, and we are committed to develop our plans and therefore also guide around that one. that without having a crystal ball should be something in the low single digits to mid single digits and we are committed to develop our plans and therefore also guide around that one From a profitability perspective, yes, we will be turning into a healthy company again as of 2027 and beyond. from a profitability perspective yes we will be turning into a healthy company again as of 2027 and beyond At this point in time, I would not make any comments in terms of where that will be exactly, and I hope and I trust you would understand that at this point in time. at this point in time i would not make any comments in terms of where that will be exactly and i hope and i trust you would understand that at this point in time

Speaker 10: Thank you. Thank you. thank you

Speaker 7: The next question comes from the line of Piral Dadhania from RBC. Please go ahead. The next question comes from the line of Piral Dadhania from RBC. the next question comes from the line of piral dadhania from rbc Please go ahead. please go ahead

Speaker 8: Okay, good afternoon. Thank you for taking my questions as well. Two, please. The first is just on the product offer. I think you talked about rationalizing the range. Could you maybe just elaborate a bit on which categories you had to cut down on? In particular, is it more footwear or apparel, and within which category, if possible? Going forward, do you expect to run this kind of range size, or should we expect it to maybe grow in the future as the product pipeline starts to populate? Just in relation to the price positioning, you know, you've given us a lot in terms of what you've done, in terms of inventory clearance. How do you view the current PUMA price positioning in the marketplace relative to your competitors and the brand equity? Okay, good afternoon. okay good afternoon Thank you for taking my questions as well. thank you for taking my questions as well Two, please. two please The first is just on the product offer. the first is just on the product offer I think you talked about rationalizing the range. i think you talked about rationalizing the range Could you maybe just elaborate a bit on which categories you had to cut down on? could you maybe just elaborate a bit on which categories you had to cut down on In particular, is it more footwear or apparel, and within which category, if possible? in particular is it more footwear or apparel and within which category if possible Going forward, do you expect to run this kind of range size, or should we expect it to maybe grow in the future as the product pipeline starts to populate? going forward do you expect to run this kind of range size or should we expect it to maybe grow in the future as the product pipeline starts to populate Just in relation to the price positioning, you know, you've given us a lot in terms of what you've done, in terms of inventory clearance. just in relation to the price positioning you know you've given us a lot in terms of what you've done in terms of inventory clearance How do you view the current PUMA price positioning in the marketplace relative to your competitors and the brand equity? how do you view the current puma price positioning in the marketplace relative to your competitors and the brand equity Is there any scope for change there? Secondly, just on wholesale, could you maybe just give us a flavor as to what the type of conversations you're having with your partners is like? You know, are they encouraged by the Reset actions that you're taking? Are they giving you indications that they will support the expansion of your, you know, market share? Do you have a sales team on the ground in your major markets to help to develop those relationships, or do you need to invest in that capability? Thank you. Is there any scope for change there? is there any scope for change there Secondly, just on wholesale, could you maybe just give us a flavor as to what the type of conversations you're having with your partners is like? secondly just on wholesale could you maybe just give us a flavor as to what the type of conversations you're having with your partners is like You know, are they encouraged by the Reset actions that you're taking? you know are they encouraged by the reset actions that you're taking Are they giving you indications that they will support the expansion of your, you know, market share? are they giving you indications that they will support the expansion of your you know market share Do you have a sales team on the ground in your major markets to help to develop those relationships, or do you need to invest in that capability? do you have a sales team on the ground in your major markets to help to develop those relationships or do you need to invest in that capability Thank you. thank you

Speaker 3: Thank you very much, Piral. Let me start with the product range and the size of that range. We have across the board investigated in which categories, footwear, apparel, but also in which sports we're going to reduce. Overall, I can say in every category that is out there, we have started to reduce our range, and we have decomplexified our offer, basically. That should allow us, across the board in each and every area, to be more pointed, to be better from a storytelling perspective, and to be more streamlined towards our consumers and also our customers. Thank you very much, Piral. thank you very much piral Let me start with the product range and the size of that range. let me start with the product range and the size of that range We have across the board investigated in which categories, footwear, apparel, but also in which sports we're going to reduce. we have across the board investigated in which categories footwear apparel but also in which sports we're going to reduce Overall, I can say in every category that is out there, we have started to reduce our range, and we have decomplexified our offer, basically. overall i can say in every category that is out there we have started to reduce our range and we have decomplexified our offer basically That should allow us, across the board in each and every area, to be more pointed, to be better from a storytelling perspective, and to be more streamlined towards our consumers and also our customers. that should allow us across the board in each and every area to be more pointed to be better from a storytelling perspective and to be more streamlined towards our consumers and also our customers I do not anticipate that will bounce back in the very near term, 'cause I'm very convinced we have a very sufficient product offering across all categories, across all sports, and also to cater for the short to midterm opportunities for PUMA as a brand. Should we decide to go into other sports or other categories in the future, that, of course, would need to be revised. From a current price position of PUMA, I think we've alluded to that. Of course, our first and foremost concern is to reduce the discounting of our very own product, starting in our DTC channels, and then also figuring out a way how to play in the better, in the more ambitious sales channels in the future. I do not anticipate that will bounce back in the very near term, 'cause I'm very convinced we have a very sufficient product offering across all categories, across all sports, and also to cater for the short to midterm opportunities for PUMA as a brand. i do not anticipate that will bounce back in the very near term 'cause i'm very convinced we have a very sufficient product offering across all categories across all sports and also to cater for the short to midterm opportunities for puma as a brand Should we decide to go into other sports or other categories in the future, that, of course, would need to be revised. should we decide to go into other sports or other categories in the future that of course would need to be revised From a current price position of PUMA, I think we've alluded to that. from a current price position of puma i think we've alluded to that Of course, our first and foremost concern is to reduce the discounting of our very own product, starting in our DTC channels, and then also figuring out a way how to play in the better, in the more ambitious sales channels in the future. of course our first and foremost concern is to reduce the discounting of our very own product starting in our dtc channels and then also figuring out a way how to play in the better in the more ambitious sales channels in the future I am, however, very, very encouraged by our success that I've just alluded to, the running and the training footwear franchise I've mentioned, that had tremendous sellouts at the beginning of the year already, are commanding price points of around EUR 250 each. That is very much at the top of the pyramid from an industry perspective. As a brand, we are absolutely capable and competent to sell products at those high-end premium price points at very good ratios. Last but not least, you talked about the sentiment of our wholesale partners. Yes, I'm not just traveling frequently. I was in the U.S. recently around the All-Star weekend. I've pretty much met, as my team has, all major wholesale partners. They do believe in our story. I am, however, very, very encouraged by our success that I've just alluded to, the running and the training footwear franchise I've mentioned, that had tremendous sellouts at the beginning of the year already, are commanding price points of around EUR 250 each. i am however very very encouraged by our success that i've just alluded to the running and the training footwear franchise i've mentioned that had tremendous sellouts at the beginning of the year already are commanding price points of around eur 250 each That is very much at the top of the pyramid from an industry perspective. that is very much at the top of the pyramid from an industry perspective As a brand, we are absolutely capable and competent to sell products at those high-end premium price points at very good ratios. as a brand we are absolutely capable and competent to sell products at those high-end premium price points at very good ratios Last but not least, you talked about the sentiment of our wholesale partners. last but not least you talked about the sentiment of our wholesale partners Yes, I'm not just traveling frequently. yes i'm not just traveling frequently I was in the U.S. recently around the All-Star weekend. i was in the u.s recently around the all-star weekend I've pretty much met, as my team has, all major wholesale partners. i've pretty much met as my team has all major wholesale partners They do believe in our story. they do believe in our story They are supporting the Reset of our brand, and they do believe in a significantly brighter future for the PUMA brand. That, of course, entails the hard work I was alluding to in 2026, and us convincing them with more with better propositions as of spring, summer 2027. Yes, of course, in all markets, not just the major markets, in all markets, we have sales teams on the ground. Those sales teams, however, are also reorganized and adjusted to make sure they're gonna cater for our opportunities. First and foremost, for example, in the specialist channels that are catering for the running consumers, where we as a brand have started to invest already significantly as of the end of 2025. Thank you. They are supporting the Reset of our brand, and they do believe in a significantly brighter future for the PUMA brand. they are supporting the reset of our brand and they do believe in a significantly brighter future for the puma brand That, of course, entails the hard work I was alluding to in 2026, and us convincing them with more with better propositions as of spring, summer 2027. that of course entails the hard work i was alluding to in 2026 and us convincing them with more with better propositions as of spring summer 2027 Yes, of course, in all markets, not just the major markets, in all markets, we have sales teams on the ground. yes of course in all markets not just the major markets in all markets we have sales teams on the ground Those sales teams, however, are also reorganized and adjusted to make sure they're gonna cater for our opportunities. those sales teams however are also reorganized and adjusted to make sure they're gonna cater for our opportunities First and foremost, for example, in the specialist channels that are catering for the running consumers, where we as a brand have started to invest already significantly as of the end of 2025. first and foremost for example in the specialist channels that are catering for the running consumers where we as a brand have started to invest already significantly as of the end of 2025 Thank you. thank you

Speaker 8: Thank you. Thank you. thank you

Speaker 7: The next question comes from the line of Adam Cochrane from Deutsche Bank. Please go ahead. The next question comes from the line of Adam Cochrane from Deutsche Bank. the next question comes from the line of adam cochrane from deutsche bank Please go ahead. please go ahead

Speaker 1: Good afternoon. Thanks, guys. First question I've got is: do you think that given the balance sheet and the cash position, that there's any constraints that have been put on your plan because of the sort of current financial position, or is everything that you want to do, able to do within the current resources, given the available liquidity that you've pointed out? The second question is really one in terms of the sort of shape of sales throughout 2026. I know that you talked about the second half being stronger than the first half, but given the sort of Q3, Q4 split, there's some quite big moving parts within that. What I'm trying to sort of get to grips with is it how bad could Q1 be? Good afternoon. good afternoon Thanks, guys. thanks guys First question I've got is: do you think that given the balance sheet and the cash position, that there's any constraints that have been put on your plan because of the sort of current financial position, or is everything that you want to do, able to do within the current resources, given the available liquidity that you've pointed out? first question i've got is do you think that given the balance sheet and the cash position that there's any constraints that have been put on your plan because of the sort of current financial position or is everything that you want to do able to do within the current resources given the available liquidity that you've pointed out The second question is really one in terms of the sort of shape of sales throughout 2026. the second question is really one in terms of the sort of shape of sales throughout 2026 I know that you talked about the second half being stronger than the first half, but given the sort of Q3, Q4 split, there's some quite big moving parts within that. i know that you talked about the second half being stronger than the first half but given the sort of q3 q4 split there's some quite big moving parts within that What I'm trying to sort of get to grips with is it how bad could Q1 be? what i'm trying to sort of get to grips with is it how bad could q1 be I think you answered earlier, but I didn't quite work out exactly what you're trying to say. What was the organic growth rate in Q4 without the takebacks, and is that way we should think about Q1? The other bit that I was thinking about is, these products that you bought back, does that actually boost your sales growth next year, or is it a risk that it dilutes it because people purchase the discounted product rather than full priced product? I was just getting an idea of how you think about that. Thanks. I think you answered earlier, but I didn't quite work out exactly what you're trying to say. i think you answered earlier but i didn't quite work out exactly what you're trying to say What was the organic growth rate in Q4 without the takebacks, and is that way we should think about Q1? what was the organic growth rate in q4 without the takebacks and is that way we should think about q1 The other bit that I was thinking about is, these products that you bought back, does that actually boost your sales growth next year, or is it a risk that it dilutes it because people purchase the discounted product rather than full priced product? the other bit that i was thinking about is these products that you bought back does that actually boost your sales growth next year or is it a risk that it dilutes it because people purchase the discounted product rather than full priced product I was just getting an idea of how you think about that. i was just getting an idea of how you think about that Thanks. thanks

Speaker 6: Thank you, Adam, for your questions. On the balance sheet, as we've worked through, especially the fourth quarter, and you've seen also the press release we issued in December, where we secured additional financing, and if I look also and what I shared in my prepared remarks, at the end of 2025, we had total EUR 1.5 billion of financial headroom available between our cash and also the unutilized credit lines. In terms of the additional financing, and I think then also, and providing additional financial flexibility so to support also the investments into strategic priorities we've completed, I think, what we've planned. Arthur will take you through the phasing of 2026. Thank you, Adam, for your questions. thank you adam for your questions On the balance sheet, as we've worked through, especially the fourth quarter, and you've seen also the press release we issued in December, where we secured additional financing, and if I look also and what I shared in my prepared remarks, at the end of 2025, we had total EUR 1.5 billion of financial headroom available between our cash and also the unutilized credit lines. on the balance sheet as we've worked through especially the fourth quarter and you've seen also the press release we issued in december where we secured additional financing and if i look also and what i shared in my prepared remarks at the end of 2025 we had total eur 1.5 billion of financial headroom available between our cash and also the unutilized credit lines In terms of the additional financing, and I think then also, and providing additional financial flexibility so to support also the investments into strategic priorities we've completed, I think, what we've planned. in terms of the additional financing and i think then also and providing additional financial flexibility so to support also the investments into strategic priorities we've completed i think what we've planned Arthur will take you through the phasing of 2026. arthur will take you through the phasing of 2026

Speaker 3: Yeah, I think your question was specific on the first half. I just want to reiterate, maybe that wasn't clear enough what I said during the presentation. We do expect our sales in the first quarter to align with our full year outlook. That full year outlook, just to remind again, was a constant currency sales decline in the low to mid-single digits. Let's just not forget, we have taken a significant amount of purchase orders out of the first half in 2026 last year already. We've been collaborating and working with our wholesale partners, primarily in order to avoid a further overstock situation, and that will, of course, have an impact on our top line results in the first half. That is all baked, however, in our outlook. Yeah, I think your question was specific on the first half. yeah i think your question was specific on the first half I just want to reiterate, maybe that wasn't clear enough what I said during the presentation. i just want to reiterate maybe that wasn't clear enough what i said during the presentation We do expect our sales in the first quarter to align with our full year outlook. we do expect our sales in the first quarter to align with our full year outlook That full year outlook, just to remind again, was a constant currency sales decline in the low to mid-single digits. that full year outlook just to remind again was a constant currency sales decline in the low to mid-single digits Let's just not forget, we have taken a significant amount of purchase orders out of the first half in 2026 last year already. let's just not forget we have taken a significant amount of purchase orders out of the first half in 2026 last year already We've been collaborating and working with our wholesale partners, primarily in order to avoid a further overstock situation, and that will, of course, have an impact on our top line results in the first half. we've been collaborating and working with our wholesale partners primarily in order to avoid a further overstock situation and that will of course have an impact on our top line results in the first half That is all baked, however, in our outlook. that is all baked however in our outlook At the same time, you've asked about the organic performance in the fourth quarter. A similar answer to that, with us taking significant stock out of the market, that, of course, has reduced our top line performance in the third, but more specifically, as Markus pointed out, in the fourth quarter. Will those take back products materially impact our performance in 2026? No, not really, because that is exactly the purpose why we took those products out of the market, why we've put them in our own inventory positions and why we have developed plans both with wholesale customers and within our own DTC channels, to liquidate them in a more responsible and in a more planned manner throughout the year of 2026. At the same time, you've asked about the organic performance in the fourth quarter. at the same time you've asked about the organic performance in the fourth quarter A similar answer to that, with us taking significant stock out of the market, that, of course, has reduced our top line performance in the third, but more specifically, as Markus pointed out, in the fourth quarter. a similar answer to that with us taking significant stock out of the market that of course has reduced our top line performance in the third but more specifically as markus pointed out in the fourth quarter Will those take back products materially impact our performance in 2026? will those take back products materially impact our performance in 2026 No, not really, because that is exactly the purpose why we took those products out of the market, why we've put them in our own inventory positions and why we have developed plans both with wholesale customers and within our own DTC channels, to liquidate them in a more responsible and in a more planned manner throughout the year of 2026. no not really because that is exactly the purpose why we took those products out of the market why we've put them in our own inventory positions and why we have developed plans both with wholesale customers and within our own dtc channels to liquidate them in a more responsible and in a more planned manner throughout the year of 2026 I would like to point out at this moment as well, however, when we talk about a significantly reduced discounting policy, we will, at the appropriate moments in time when the entire industry is going into discount mode, of course, do the same from a PUMA perspective. These will be the windows that allow us as a brand then, to liquidate overstock and residual products like competition will be doing in the future. Thank you. I would like to point out at this moment as well, however, when we talk about a significantly reduced discounting policy, we will, at the appropriate moments in time when the entire industry is going into discount mode, of course, do the same from a PUMA perspective. i would like to point out at this moment as well however when we talk about a significantly reduced discounting policy we will at the appropriate moments in time when the entire industry is going into discount mode of course do the same from a puma perspective These will be the windows that allow us as a brand then, to liquidate overstock and residual products like competition will be doing in the future. these will be the windows that allow us as a brand then to liquidate overstock and residual products like competition will be doing in the future Thank you. thank you

Speaker 7: We now have time for one more question, which comes from the line of Robert Krakowski from UBS. Please go ahead. We now have time for one more question, which comes from the line of Robert Krakowski from UBS. we now have time for one more question which comes from the line of robert krakowski from ubs Please go ahead. please go ahead

Speaker 9: Two questions for me, please. The first one will be on gross margin. We heard that there is going to be a substantial improvement to gross margin, and you mentioned specifically the promotion activity. Are there any other positives that we should be thinking about gross margin, maybe specifically the FX hedging in the second half? How material can it be for 2026? The second one will be just clarification on the industry growth, because now we heard that it's going to be low single digit to mid single digit, potentially in 2027. I think previously it was roughly 5%. What has realistically changed in the last few months? Is there anything new that you realized or what basically is driving the change in the view? If you could share any more details. Thanks. Two questions for me, please. two questions for me please The first one will be on gross margin. the first one will be on gross margin We heard that there is going to be a substantial improvement to gross margin, and you mentioned specifically the promotion activity. we heard that there is going to be a substantial improvement to gross margin and you mentioned specifically the promotion activity Are there any other positives that we should be thinking about gross margin, maybe specifically the FX hedging in the second half? are there any other positives that we should be thinking about gross margin maybe specifically the fx hedging in the second half How material can it be for 2026? how material can it be for 2026 The second one will be just clarification on the industry growth, because now we heard that it's going to be low single digit to mid single digit, potentially in 2027. the second one will be just clarification on the industry growth because now we heard that it's going to be low single digit to mid single digit potentially in 2027 I think previously it was roughly 5%. i think previously it was roughly 5% What has realistically changed in the last few months? what has realistically changed in the last few months Is there anything new that you realized or what basically is driving the change in the view? is there anything new that you realized or what basically is driving the change in the view If you could share any more details. if you could share any more details Thanks. thanks

Speaker 6: Thank you, Robert, for your questions. Let me guide you through the gross margin drivers for 2026. We expect, I think as we said earlier, a substantial improvement in our gross profit margin. The drivers are mainly promotions as we continue with the efforts to reduce promotions to our B2C channels and inventory reserves. In addition, also we expect some tailwind from the channel mix. I think as we also talked about, I think we expect a stronger growth in the B2C channel compared to wholesale. I think there's still a little bit of shift in the distribution mix, I think contributes also to the gross profit margin development. Thank you, Robert, for your questions. thank you robert for your questions Let me guide you through the gross margin drivers for 2026. let me guide you through the gross margin drivers for 2026 We expect, I think as we said earlier, a substantial improvement in our gross profit margin. we expect i think as we said earlier a substantial improvement in our gross profit margin The drivers are mainly promotions as we continue with the efforts to reduce promotions to our B2C channels and inventory reserves. the drivers are mainly promotions as we continue with the efforts to reduce promotions to our b2c channels and inventory reserves In addition, also we expect some tailwind from the channel mix. in addition also we expect some tailwind from the channel mix I think as we also talked about, I think we expect a stronger growth in the B2C channel compared to wholesale. i think as we also talked about i think we expect a stronger growth in the b2c channel compared to wholesale I think there's still a little bit of shift in the distribution mix, I think contributes also to the gross profit margin development. i think there's still a little bit of shift in the distribution mix i think contributes also to the gross profit margin development As you pointed out, and of course, also given the weaker U.S. dollar, the weaker U.S. dollar is, with our hedging policy, a tailwind in the second half of 2026, but it's a slight tailwind, so that's why we didn't call it out earlier when we talked about the key gross and profit margin drivers. As you pointed out, and of course, also given the weaker U.S. dollar, the weaker U.S. dollar is, with our hedging policy, a tailwind in the second half of 2026, but it's a slight tailwind, so that's why we didn't call it out earlier when we talked about the key gross and profit margin drivers. as you pointed out and of course also given the weaker u.s dollar the weaker u.s dollar is with our hedging policy a tailwind in the second half of 2026 but it's a slight tailwind so that's why we didn't call it out earlier when we talked about the key gross and profit margin drivers

Speaker 3: Thank you. Yes, Robert, to your second point, let me just clarify. I did not fully give you an outlook of the perceived industry growth. I was exemplarily saying, of course, we expect a mid-single digit, 5%, roughly, growth in the market. It would not be prudent at this point in time to commit to such a growth. What we are committing to, of course, is that should the industry average be that 5% or mid-single digit, PUMA will grow above that industry standard in 2027 again. We'll update you later in the year as we have more transparency also on how the year 2026 as an industry unfolds, to then project that growth for the next year. Thank you. Thank you. thank you Yes, Robert, to your second point, let me just clarify. yes robert to your second point let me just clarify I did not fully give you an outlook of the perceived industry growth. i did not fully give you an outlook of the perceived industry growth I was exemplarily saying, of course, we expect a mid-single digit, 5%, roughly, growth in the market. i was exemplarily saying of course we expect a mid-single digit 5% roughly growth in the market It would not be prudent at this point in time to commit to such a growth. it would not be prudent at this point in time to commit to such a growth What we are committing to, of course, is that should the industry average be that 5% or mid-single digit, PUMA will grow above that industry standard in 2027 again. what we are committing to of course is that should the industry average be that 5% or mid-single digit puma will grow above that industry standard in 2027 again We'll update you later in the year as we have more transparency also on how the year 2026 as an industry unfolds, to then project that growth for the next year. we'll update you later in the year as we have more transparency also on how the year 2026 as an industry unfolds to then project that growth for the next year Thank you. thank you

Speaker 7: There are no further questions at this time. I'll hand back to Manuel Bösing for closing comments. There are no further questions at this time. there are no further questions at this time I'll hand back to Manuel Bösing for closing comments. i'll hand back to manuel bösing for closing comments

Speaker 5: Thank you very much, Maura, and thanks to everyone for your questions. We appreciate your interest in PUMA, and we look forward to speaking with you again soon. This concludes our call for Q4 and full year 2025. Thank you, everyone, and goodbye. Thank you very much, Maura, and thanks to everyone for your questions. thank you very much maura and thanks to everyone for your questions We appreciate your interest in PUMA, and we look forward to speaking with you again soon. we appreciate your interest in puma and we look forward to speaking with you again soon This concludes our call for Q4 and full year 2025. this concludes our call for q4 and full year 2025 Thank you, everyone, and goodbye. thank you everyone and goodbye