AI assistant
PUMA SE — Interim / Quarterly Report 2013
May 14, 2013
341_10-q_2013-05-14_a0af582d-3d1e-4d7c-84cb-ba030a304651.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer

PUMA SE
FINANCIAL REPORT
January - March of 2013


CONTENT
| Financial Facts | 3 |
|---|---|
| Management Report | |
| - General Economic Conditions |
4 |
| - Strategy |
4 |
| - Sales and Earnings Development |
5 - 8 |
| - Net Assets and Financial Position |
9 |
| - Outlook |
10 |
| Consolidated Financial Statements | |
| - Balance Sheet |
1 1 |
| - Income Statement |
1 2 |
| - Statement of Comprehensive Income |
1 3 |
| - Cashflow Statement |
1 4 |
| - Changes in Equity |
1 5 |
| - Operating Segments |
1 6 |
| - Notes to the Financial Report |
17 – 19 |
| Managing Directors / Administrative Board |
2 0 |
| Financial Calendar | 2 |
Development of the PUMA Share Rebased Development incl. Trading Volume (Xetra)


| Financial Facts | 1-3/2013 | 1-3/2012 | Devi- |
|---|---|---|---|
| € million | € million | ation | |
| Brand Sales | 820,5 | 856,1 | -4,2% |
| Consolidated net sales | 781,6 | 820,9 | -4,8% |
| Gross profit in % | 49,1% | 51,2% | |
| Operating result | 79,0 | 102,0 | -22,6% |
| Net earnings | 50,3 | 73,9 | -32,0% |
| - in % | 6,4% | 9,0% | |
| Total assets | 2.513,9 | 2.486,2 | 1,1% |
| Equity ratio in % | 66,7% | 66,4% | |
| Working capital | 774,7 | 723,7 | 7,0% |
| Cashflow - gross | 88,7 | 120,9 | -26,6% |
| Free cashflow (before acquisition) | -134,0 | -111,5 | 20,2% |
| Earnings per share (in €) | 3,36 | 4,92 | -31,8% |
| Cashflow - gross per share (in €) | 5,93 | 8,05 | -26,4% |
| Free cashflow per share (in €) (before acquisition) | -8,96 | -7,43 | 20,6% |
| Share price at end of the period | 242,89 | 267,80 | -9,3% |
| Market capitalization at end of the period | 3.629 | 3.999 | -9,3% |
| Investments in tangible and intangible assets (excluding goodwill) | 8,9 | 13,8 | -35,4% |
Michael Laemmermann, CFO:
"In the current challenging business climate, especially in Europe and in Asia, we are continuing to implement our Transformation and Cost Reduction Program aimed at improving efficiencies and our cost base. This will increase PUMA"s profitability in the long-term. Confirming our increased focus on Performance, PUMA"s visibility and credibility as a premium football brand have been further enhanced with Borussia Dortmund"s progress to the Champions League final."




Management Report
GENERAL ECONOMIC CONDITIONS
The spring forecast published on March 13, 2013 by the Kiel World Economic Institute indicates that global economic activity slowed markedly durin g the course of 2012. There are, however, increasing signs which suggest that the world"s economy is picking up. World output increased slightly at the end of the year, albeit due solely to Asian emerging markets. Industrial output has, however, slowed notably in developed markets, as Japan and the Eurozone in particular have failed to perform.
STRATEGY
With the objective of becoming "The Most Desirable and Sustainable Sportlifestyle Company", PUMA's position as one of the few, true multi category brands is to be strengthened and the opportunities offered by the sportlifestyle market are to be systematically exploited in all categories and regions. As a multi -category supplier, PUMA is active in categories and business fields/divisions that suit its unique brand positioning, and in which permanent value increases can be achieved for the company. PUMA is positioned as a sportlifestyle brand that takes pleasure in skilfully combining sports and lifestyle influences and which strives to contribute to a better world.
The above -mentioned brand positioning is to be supported by selectively expanding the existing product categories, by regional expansion, and by expansion with non -PUMA brands.

Sales and Earnings Development
Global Brand Sales
Worldwide PUMA brand sales - comprised of consolidated and license sales - declined by 1.7% currency adjusted, from € 856 million last year to € 821 million in the third quarter of 2013.
Consolidated Sales
Business climate in Europe remains challenging
Sportlifestyle company PUMA recorded a decline in first quarter sales as Eurozone retail spending continued to weaken and sales in Asia were affected by an unusually long winter. Sales fell by 2.3% in currency adjusted terms to € 782 million when compared to the first quarter of 2012.
PUMA"s sales in the Americas improved by 1.8% currency adjusted to € 260 million. There were strong performances in Mexico and Brazil, where Teamsport was bolstered by Rio de Janeiro soccer club Botafogo, and Argentina, where Lifestyle collections are resonating well. Our Cobra PUMA Golf division continues to deliver outstanding results, which is also reflected in rising sales in North America.
Sales in the EMEA region were impacted in particular by the softening in retail spending, exacerbated be the unusually long winter, and fell by 4.8% currency adjusted to € 348 million.
Strong performances in Russia, Turkey and the D-A-CH region, where classic footwear models such as the Suede and new Motorsport apparel lines resonated well, could not completely offset weak performances in Italy and France. Steadfastly high levels of unemployment in the southern regions of the Eurozone added to the difficult retail environment.
In the Asia/Pacific region, sales declined by 2.9% currency adjusted to € 173 million. India, supported by excellent sales in Running and Teamsports, and Australia delivered positive performances which could not quite offset the less satisfactory numbers from Japan, where there was an unusually harsh winter, and China, where Fitness & Training products in particular did not perform as expected.
Satisfying retail performance
PUMA"s Retail sales increased by 13.9% currency adjusted to € 135 million, representing a 17.3% share of total sales. This rise in sales was supported by excellent results from our ecommerce business, particularly in North America.




| Sales by regions and product segments | Q1 | growth rates | |||
|---|---|---|---|---|---|
| € million | 2013 | 2012 | Euro | currency adjusted |
|
| Breakdown by regions | |||||
| EMEA | 347,9 | 368,0 | -5,5% | -4,8% | |
| Americas | 260,2 | 260,8 | -0,2% | 1,8% | |
| Asia/Pacific | 173,4 | 192,1 | -9,7% | -2,9% | |
| Total | 781,6 | 820,9 | -4,8% | -2,3% | |
| Breakdown by product segments | |||||
| Footwear | 373,1 | 414,6 | -10,0% | -7,8% | |
| Apparel | 256,1 | 267,6 | -4,3% | -1,1% | |
| Accessories | 152,4 | 138,7 | 9,9% | 11,9% | |
| Total | 781,6 | 820,9 | -4,8% | -2,3% |

Lack of Sporting Events impacts Footwear Sales; Mobium on the Rise
In the first quarter of 2013, Accessories performed exceptionally well during the first three months of 2013, rising by 11.9% currency adjusted to € 152 million. This outstanding performance was once again led by Cobra PUMA Golf and our North American joint venture for socks and bodywear.
Apparel sales declined modestly in the first quarter by 1.1% currency adjusted to € 256 million. Although Fundamentals were lower, Cobra PUMA Golf and Running continued to perform well. In Teamsport, the spotlight remains firmly on our most successful team, Borussia Dortmund, whose journey to this season"s Champions League final at the end of May has captured the imagination of football fans around the world underlining PUMA"s position as a premium football brand.
PUMA has also recently successfully introduced its ISPO award winning PUMA ACTV and RCVR performance apparel. By fusing compression technology with inbuilt athletic taping, ACTV and RCVR apparel increase the body"s performance and improve its recovery times, taking this category to the next level.
Footwear sales declined by 7.8% currency adjusted to € 373 million. The decline was caused in part by the Teamsport category, which did not perform as well in a non-event year, and Training & Fitness was impacted by the shrinking demand for toning products. In Lifestyle PUMA"s new range of Suede and Archive Lite Models were very well received, with our Future Suede Lite and TX-3 shoes resonating extremely well with consumers in the Asia/Pacific region.
Following the launch of "The Nature of Performance" brand platform to revitalize our Performance categories, PUMA Running was invigorated by our new Adaptive Running shoe, the PUMA Mobium Elite. The Mobium Elite is delivering encouraging sell-through in many markets, including the United States and Asia/Pacific region.
Transformation Program being implemented according to plan
The implementation of PUMA"s Transformation Program continued during the first quarter. The set up of PUMA"s new Business Unit, supported by our Performance and Lifestyle pillars, is now complete and the evolution to a market and consumer focused organization continues. Each of PUMA"s six Business Units will be managed by one fully accountable Business Unit General Manager. Each team is wholly situated at one location to be able to react faster to consumer trends and optimize each team"s efforts. PUMA"s European consolidation of 23 countries into 7 areas is also on track, with our D-A-CH and Iberia areas now established. In retail, 45 underperforming stores were closed by the end of the first quarter.


PUMA will continue to execute on all of the measures set out under the Transformation and Cost Reduction Program in 2012 in order to benefit the Company in both the mid- and long-term.
Gross Profit Margin
Gross Profit Margin softens to 49.1%
PUMA"s gross profit margin fell from 51.2% to 49.1% year on year. Pressure on the gross profit margin in the first quarter came in the most part from two sources: Substantial currency headwinds due to the negative hedging position in the first quarter of 2013 compared to the same period last year, and also continued inventory management with a particular focus on Footwear, combined with higher input costs. As a consequence, Footwear margins dropped from 49.5% to 46.1% and Apparel retreated from 53.5% to 51.5%, while Accessories improved from 51.9% to 52.6%.
Operating Expenses
OPEX decrease as a result of the Transformation and Cost Reduction Program
The broad approach undertaken to reduce costs by PUMA under both programs enabled the Company to reduce operating expenditure in nearly all areas, resulting in a decrease in OPEX of 3.9% to € 310 million.
EBIT
Operating Result (EBIT) impacted by drop in gross profit margin
Despite the cost savings achieved by the measures undertaken under the Cost Reduction Program, operating profit declined in the first three months of 2013 from € 102 million to € 79 million due to the decline in sales and gross profit margin. As a consequence, the EBIT ratio decreased from 12.4% last year to 10.1% this year.
Financial Result/Income from Associated Companies
The financial result declined from € 1.1 million to € -4.0 million in the first quarter, due mainly to negative currency conversion impacts.
Earnings before Taxes
PUMA"s EBT for the first quarter declined to € 75 million in 2013 compared to € 103 million in 2012, representing 9.6% of sales compared to 12.6% for the same period last year. Consequently, tax expenses abated from € 28 million to € 22 million, representing a tax rate of 29.3% versus 27.1% for the first quarter of 2012.
Net Earnings
Consolidated net earnings dropped by 32.0% from € 74 million to € 50 million. Earnings per share therefore also fell back from € 4.92 in 2012 to € 3.36 in the first quarter of 2013.




Net Assets and Financial Position
Equity
PUMA"s equity base continued to strengthen, with the equity ratio moving up slightly from 66.4% to 66.7% compared to the first quarter of 2012. Shareholder's equity is now equivalent to € 1,676 million, up from € 1,652 million.
Working Capital
PUMA"s overall Working Capital increased by 7.0% to € 775 million due to the reduction of working capital related liabilities. A continued strong emphasis on inventory management resulted in almost flat stock levels at € 592 million. Trade receivables declined by 4.3% to € 594 million, due to the lower revenues in the quarter.
Cashflow / Capex
The Free Cashflow improved from € -200 million last year to € -154 million this year due to lower payments for acquisitions in spite of the decline in earnings before tax.
Capex declined from € 14 million to € 9 million, which was mainly invested in the opening and refitting of selected retail stores as well as office and IT equipment.
Cash Position
PUMA"s net cash position improved slightly from € 203 million to € 207 million at the end of the first quarter.

Outlook 2013
Global Economy
The spring forecast published on March 13, 2013 by the Kiel World Economic Institute projects that the global economy is gradually gaining momentum after a significant slowdown during the course of 2012. Likewise the IfW sentiment indicator, which is based on forward looking business sentiment components in 42 countries, which is signaling a substantially stronger increase in global economic activity in the first quarter of 2013. IfW experts project an increase in global output of 3.4 percent this year, unchanged from the forecast in December. For 2014, they have marginally increased their output projections to 4.0 percent (December forecast: 3.9 percent).
Investments
Investments totaling € 70 million are planned for 2013. The majority of these funds have been allocated to infrastructure investments which are necessary to help drive the planned growth in sales, the expansion of our core markets as well as selective investments in retail trade operations.
General Matters
New Chief Executive Officer appointed
PUMA SE"s Administrative Board appointed Björn Gulden as PUMA"s new Chief Executive Officer (CEO), effective 1 July 2013. Björn brings to PUMA an extensive international experience of nearly 20 years in the sporting goods and footwear industry, where he has held a variety of senior management positions.
Outlook 2013
In view of PUMA's first quarter results and of continuing economic uncertainty in certain key markets, Management now expects a low- to midsingle-digit decline in currency-adjusted full-year net sales. This forecast represents a slight downward revision compared to the guidance provided with the 2012 full-year results.
Management reiterates its expectations for continued pressure on the gross profit margin. Under these circumstances, PUMA is also unlikely to meet its original guidance of low- to mid-singledigit growth in EBIT before special items. However, PUMA"s Management confirms that it expects net earnings to increase compared to the 2012 level.

| Balance Sheet | Mar. 31,'13 | Mar. 31,'12 | Devi- | Dec. 31,'12 |
|---|---|---|---|---|
| € million | € million | ation | € million | |
| ASSETS | ||||
| Cash and cash equivalents | 260,0 | 245,8 | 5,8% | 407,3 |
| Inventories | 591,6 | 587,1 | 0,8% | 552,5 |
| Trade receivables | 593,7 | 620,5 | -4,3% | 507,0 |
| Other current assets (Working Capital related) | 178,3 | 162,4 | 9,8% | 167,4 |
| Other current assets | 17,2 | 15,8 | 8,5% | 8,4 |
| Current assets | 1.640,7 | 1.631,5 | 0,6% | 1.642,6 |
| Deferred taxes | 139,0 | 110,3 | 26,1% | 152,0 |
| Other non-current assets | 734,2 | 744,3 | -1,4% | 735,7 |
| Non-current assets | 873,2 | 854,6 | 2,2% | 887,6 |
| Total Assets | 2.513,9 | 2.486,2 | 1,1% | 2.530,3 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current bank liabilities | 53,4 | 42,6 | 25,3% | 44,1 |
| Trade payables | 376,0 | 393,5 | -4,5% | 376,1 |
| Other current liabilities (Working Capital related) | 212,9 | 252,7 | -15,8% | 227,2 |
| Other current liabilities | 66,9 | 10,0 | 571,8% | 156,1 |
| Current liabilities | 709,2 | 698,8 | 1,5% | 803,5 |
| Deferred taxes | 54,6 | 64,8 | -15,7% | 54,1 |
| Pension provisions | 31,1 | 30,1 | 3,3% | 30,7 |
| Other non-current liabilities | 43,4 | 40,8 | 6,3% | 44,7 |
| Non-current liabilities | 129,1 | 135,7 | -4,9% | 129,4 |
| Shareholders' equity | 1.675,6 | 1.651,6 | 1,5% | 1.597,4 |
| Total Liabilities and Shareholders' equity | 2.513,9 | 2.486,2 | 1,1% | 2.530,3 |

First Quarter
| Income Statement | Q1/2013 | Q1/2012 | Devi- | |
|---|---|---|---|---|
| € million | € million | ation | ||
| Sales | 781,6 | 820,9 | -4,8% | |
| Cost of sales | -397,6 | -400,7 | -0,8% | |
| Gross profit | 384,0 | 420,1 | -8,6% | |
| - in % of consolidated sales | 49,1% | 51,2% | ||
| Royalty and commission income | 4,8 | 4,3 | 11,9% | |
| Other operating income and expenses | -309,8 | -322,4 | -3,9% | |
| Operating result (EBIT) | 79,0 | 102,0 | -22,6% | |
| - in % of consolidated sales | 10,1% | 12,4% | ||
| Financial result / Income from associated companies | -4,0 | 1,1 | ||
| Earnings before taxes (EBT) | 75,0 | 103,1 | -27,2% | |
| - in % of consolidated sales | 9,6% | 12,6% | ||
| Taxes on income | -22,0 | -27,9 | -21,3% | |
| - Tax rate | 29,3% | 27,1% | ||
| Net earnings attributable to non-controlling interests | -2,8 | -1,2 | ||
| Net earnings | 50,3 | 73,9 | -32,0% | |
| Earnings per share (€) | 3,36 | 4,92 | -31,8% | |
| Earnings per share (€) - diluted | 3,36 | 4,92 | -31,8% | |
| Weighted average shares outstanding | 14,965 | 15,010 | -0,3% | |
| Weighted average shares outstanding - diluted | 14,966 | 15,017 | -0,3% |

| Statement of Comprehensive Income | After tax | Tax impact | Before tax | After tax | Tax impact | Before tax | |
|---|---|---|---|---|---|---|---|
| 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | ||
| € million | € million | € million | € million | € million | € million | ||
| Net earnings before attribution | 53,0 | 53,0 | 75,1 | 75,1 | |||
| Currency changes | 12,7 | 12,7 | -19,3 | -19,3 | |||
| Neutral effects hedge accounting | 11,8 | -4,6 | 16,4 | -10,9 | 3,5 | -14,4 | |
| Other result | 24,5 | -4,6 | 29,1 | -30,2 | 3,5 | -33,7 | |
| Comprehensive income | 77,5 | -4,6 | 82,1 | 45,0 | 3,5 | 41,5 | |
| attributable to: | Non-controlling interest | 3,1 | 3,1 | 1,2 | 1,2 | ||
| Equity holders of the parent | 74,4 | -4,6 | 79,0 | 43,8 | 3,5 | 40,3 |

| Cashflow Statement | 1-3/2013 | 1-3/2012 | Devi- |
|---|---|---|---|
| € million | € million | ation | |
| Earnings before taxes (EBT) | 75,0 | 103,1 | -27,2% |
| Financial result and non cash effected expenses and income | 13,7 | 17,8 | -23,3% |
| Cashflow - gross | 88,7 | 120,9 | -26,6% |
| Change in net working capital | -177,4 | -193,9 | -8,5% |
| Taxes and interest payments | -38,8 | -26,5 | 46,4% |
| Cashflow from operating activities | -127,5 | -99,5 | 28,1% |
| Payments for acquisitions | -19,5 | -88,6 | -78,0% |
| Payments for investments in fixed assets | -8,9 | -13,8 | -35,4% |
| Other investing activities | 2,4 | 1,8 | 31,3% |
| Cashflow from investing activities | -26,1 | -100,6 | -74,1% |
| Free Cashflow | -153,6 | -200,1 | -23,3% |
| Free Cashflow (before acquisition) | -134,0 | -111,5 | 20,2% |
| Dividends paid to non-controlling interests | -0,4 | -0,6 | -32,6% |
| Other changes | 7,8 | 7,2 | 8,2% |
| Cashflow from financing activities | 7,4 | 6,6 | 11,7% |
| Effect on exchange rates on cash | -1,1 | -9,0 | -87,6% |
| Change in cash and cash equivalents | -147,3 | -202,5 | -27,3% |
| Cash and cash equivalents at beginning of financial year | 407,3 | 448,2 | -9,1% |
| Cash and cash equivalents end of the period | 260,0 | 245,8 | 5,8% |

| Changes in Equity | Subscribed | Group reserves | Retained | Treasury | Equity | Non- | Total | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| capital | Capital | Revenue | Difference | Cashflow | At equity | earnings | stock | before | controlling | Equity | |
| reserve | reserves | from | hedges | accounted | non- | interests | |||||
| currency | investments | controlling | |||||||||
| € million | conversion | interests | |||||||||
| Dec. 31, 2011 | 38,6 | 187,6 | 66,7 | 6,4 | 19,8 | 0,8 | 1.317,3 | -32,6 | 1.604,5 | 0,7 | 1.605,2 |
| Dividends paid to equity holders of the parent company / non- controlling interests |
0,0 | -0,6 | -0,6 | ||||||||
| Currency changes | -18,9 | -0,3 | -19,2 | -0,0 | -19,3 | ||||||
| Net effect on cashflow hedges, | |||||||||||
| net of taxes | -10,9 | -10,9 | -10,9 | ||||||||
| Value of employees services | 2,0 | 0,0 | 2,0 | 2,0 | |||||||
| Net earnings | 73,9 | 73,9 | 1,2 | 75,1 | |||||||
| Mar. 31, 2012 | 38,6 | 189,6 | 66,7 | -12,5 | 8,9 | 0,5 | 1.391,2 | -32,6 | 1.650,3 | 1,3 | 1.651,6 |
| Dec. 31, 2012 | 38,6 | 189,8 | 65,1 | -24,9 | -6,4 | 0,2 | 1.357,6 | -31,6 | 1.588,5 | 8,9 | 1.597,4 |
| Dividends paid to equity holders of the parent company / non- controlling interests |
0,0 | -0,4 | -0,4 | ||||||||
| Currency changes | 12,4 | 0,0 | 12,4 | 0,3 | 12,7 | ||||||
| Net effect on cashflow hedges, | |||||||||||
| net of taxes | 11,8 | 11,8 | 11,8 | ||||||||
| Value of employees services | 1,1 | 1,1 | 1,1 | ||||||||
| Net earnings | 50,3 | 50,3 | 2,8 | 53,0 | |||||||
| Mar. 31, 2013 | 38,6 | 190,9 | 65,1 | -12,5 | 5,4 | 0,2 | 1.407,8 | -31,6 | 1.664,0 | 11,7 | 1.675,6 |

Operating Segments 1-3/2013
| Regions | Net Sales | EBIT | Investments | |||||
|---|---|---|---|---|---|---|---|---|
| 1-3/2013 € million |
1-3/2012 € million |
1-3/2013 € million |
1-3/2012 € million |
1-3/2013 € million |
1-3/2012 € million |
|||
| EMEA | 318,5 | 339,6 | 15,8 | 24,1 | 2,0 | 6,2 | ||
| Americas | 219,3 | 225,9 | 7,8 | 13,3 | 2,1 | 6,4 | ||
| Asia/Pacific | 139,6 | 159,3 | 8,0 | 8,0 | 0,6 | 0,6 | ||
| Central units/consolidation | 104,1 | 96,1 | 47,3 | 56,7 | 4,3 | 0,7 | ||
| Total | 781,6 | 820,9 | 79,0 | 102,0 | 9,0 | 13,9 |
| Depreciation | Inventories | Trade Receivables | ||||||
|---|---|---|---|---|---|---|---|---|
| 1-3/2013 € million |
1-3/2012 € million |
1-3/2013 € million |
1-3/2012 € million |
1-3/2013 € million |
1-3/2012 € million |
|||
| EMEA | 4,1 | 4,2 | 254,4 | 269,8 | 238,9 | 274,1 | ||
| Americas | 3,5 | 3,4 | 180,8 | 169,1 | 173,9 | 167,7 | ||
| Asia/Pacific | 2,3 | 2,3 | 101,1 | 107,8 | 91,5 | 104,2 | ||
| Central units/consolidation | 3,8 | 5,0 | 55,2 | 40,3 | 89,4 | 74,5 | ||
| Total | 13,6 | 14,9 | 591,6 | 587,1 | 593,7 | 620,5 |
| Product | Net Sales | Gross Profit Margin | ||||
|---|---|---|---|---|---|---|
| 1-3/2013 € million |
1-3/2012 € million |
1-3/2013 € million |
1-3/2012 € million |
|||
| Footwear | 373,1 | 414,6 | 46,1% | 49,5% | ||
| Apparel | 256,1 | 267,6 | 51,5% | 53,5% | ||
| Accessories | 152,4 | 138,7 | 52,6% | 51,9% | ||
| Total | 781,6 | 820,9 | 49,1% | 51,2% |
| Bridge to EBT | 1-3/2013 € Mio. |
1-3/2012 € Mio. |
|---|---|---|
| EBIT | 79,0 | 102,0 |
| Financial Result | -4,0 | 1,1 |
| EBT | 75,0 | 103,1 |

Notes to the Financial Report for the First Three Months of 2013
GENERAL REMARKS
Under the "PUMA" brand name, PUMA SE and its subsidiaries (the "PUMA group") are engaged in the development and sales of a broad range of sport and sportlifestyle products including footwear, apparel and accessories. The company"s registered head office is in Herzogenaurach, Federal Republic of Germany; its responsible court of registration is at Fürth (Bavaria).
PUMA is an affiliated company of the Kering Group (formerly PPR Group) and will be consolidated in the consolidated financial statements of Kering.
ACCOUNTING STANDARDS
The unaudited financial report of PUMA SE and its subsidiaries (which together form the PUMA group) was prepared according to IAS 34 "Interim Financial Reporting" and should be read in connection with the annual financial statements as of December 31, 2012. The consolidated financial statements details contained therein apply to the financial reports for 2013, unless changes have been explicitly referred to.
The financial report corresponds to all committing standards and interpretations applied and explained in the annual financial statements as of December 31, 2012.
This financial report is partly based on assumptions and estimates which have an impact on the amounts and on the breakdown of the reported assets and liabilities as well as of the revenues and expenses. The actual values may, in some exceptional cases, differ from these assumptions and estimates at a later date. The corresponding changes if and when they occur will be considered as soon as the findings are revised.
SEASONAL VARIANCE
The group"s sales fluctuate with the seasons. Consequently, the sales and resulting earnings vary in the course of a year.
EMPLOYEES
| 2013 | 2012 | |
|---|---|---|
| Number of employees at the beginning of the period |
11,290 | 10,836 |
| Number of employees at the end of the period |
10,668 | 10,657 |
| Average number of employees |
10,787 | 10,675 |

EARNINGS PER SHARE
Earnings per share are calculated according to IAS 33 by dividing the result for the period by the weighted average number of outstanding shares. The repurchased shares reduced the number of outstanding shares as well as diluted number of shares. In principle, outstanding stock options from the Management Incentive Program can result to a dilution of earnings per share.
| 2013 | 2012 | |
|---|---|---|
| Earnings per share | € 3.36 | € 4.92 |
| Diluted earnings per share | € 3.36 | € 4.92 |
DIVIDEND
According to the Annual Shareholders" Meeting on May 7, 2013, a dividend of € 0.50 per share was approved for the fiscal year 2012. The dividend totaled € 7.5 million and was paid to the shareholders beginning on May 8, 2013.
SHAREHOLDERS' EQUITY
Subscribed Capital
As of balance sheet date the subscribed capital amounted to € 38.6 million, divided into 15,082,464 no par value shares.
Treasury Stock
The resolution adopted by the Annual General Meeting on April 20, 2010 authorized the company to purchase until April 19, 2015 its own shares to a value of up to ten percent of the share capital.
The company did not add shares to the treasury stock during the first three months.
At the end of March, the company held a total of 147,831 shares. This represents 0.98% of the total subscribed capital.
Development Number of Shares
| 2013 | 2012 | |
|---|---|---|
| Number of shares at the beginning and at the end of the period |
15,082,464 | 15,082,464 |
| Thereof own shares/treasury stocks |
-147,831 | -147,831 |
| Shares outstanding at the end of the period |
14,934,633 | 14,934,633 |
| Weighted average number of shares, outstanding |
14,964,581 | 15,009,645 |
| Diluted number of shares | 14,966,228 | 15,016,615 |

SEGMENT REPORTING
Segment reporting is based on geographical regions in accordance with the internal reporting structure. Sales and gross profit are shown according to the geographical region where the respective group company is located (head office). Intra-group sales are eliminated. Allocation of the remaining segment information is also determined on the basis of the respective group company"s head office. The sum totals equal the amounts on the income statement or on the balance sheet, respectively.
EVENTS AFTER THE BALANCE SHEET DATE
There were no events after the balance sheet date which may affect the financial situation and earnings position as of March 31, 2013.
Herzogenaurach, May 14, 2013
The Managing Directors

Managing Directors
Stefano Caroti (Chief Commercial Officer)
Michael Laemmermann (CFO)
Administrative Board
Jean -François Palus (Chairman)
François -Henri Pinault (Deputy Chairman)
Thore Ohlsson
Todd Hymel
Michel Friocourt
Jean -Marc Duplaix (from May 7, 2013)
Bernd Illig Employees" Representative
Martin Koeppel Employees" Representative
Guy Buzzard Employees" Representative

Financial Calendar FY 2013
- February 14, 2013 Financial Results FY 2012
- May 7, 2013 Annual Shareholders" Meeting
- May 14, 2013 Financial Results Q1/2013
- July 24, 2013 Financial Results Q2/2013
- November 8, 2013 Financial Results Q3/2013
The financial releases and other financial information are available on the Internet at "about.puma.com".
Notes relating to forward-looking statements:
This document contains forward-looking information about the Company"s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.
PUMA
Published by
PUMA SE PUMA Way 1 D-91074 Herzogenaurach
Tel.: +49 (0)9132 81-0 email: [email protected] Internet: http://www.puma.com
PUMA is one of the world"s leading Sportlifestyle companies that designs and develops footwear, apparel and accessories. It is committed to working in ways that contribute to the world by supporting Creativity, SAFE Sustainability and Peace, and by staying true to the principles of being Fair, Honest, Positive and Creative in decisions made and actions taken. PUMA starts in Sport and ends in Fashion. Its Sport Performance and Lifestyle labels include categories such as Football, Running, Motorsports, Golf and Sailing. Sport Fashion features collaborations with renowned designer labels such as Alexander McQueen, Mihara Yasuhiro and Sergio Rossi. The PUMA Group owns the brands PUMA, Cobra Golf and Tretorn. The company, which was founded in 1948, distributes its products in more than 120 countries, employs about 10,000 people worldwide and has headquarters in Herzogenaurach/Germany, Boston, London and Hong Kong. For more information, please visit http://www.puma.com