PUMA SE — Interim / Quarterly Report 2019

Apr 26, 2019

QUARTERLY STATEMENT Q1 2019

Strong Sales and EBIT Growth in the first Quarter

Herzogenaurach, April 26, 2019

2019 First-Quarter Facts

• Sales increase by 15.3% currency-adjusted to € 1,319 million (+16.6% reported), driven by continued growth in all regions and product divisions
• Gross profit margin improves by 80 basis points to 49.0%
• Operating expenses (OPEX) increase to € 511 million (last year: € 437 million) due to higher sales related variable costs, including logistics costs as well as higher marketing and retail investments
• Operating result (EBIT) improves by 27.0% to € 143 million (last year: € 112 million)
• PUMA signs the football clubs Manchester City and Valencia CF
• PUMA will be official matchball partner of Spanish Football League "LaLiga" starting season 2019/20
• PUMA becomes the exclusive merchandise and trackside retail partner of Formula 1
• PUMA's shareholders approve share split 1:10 at the Annual General Meeting on April 18
• Héloïse Temple-Boyer and Fiona May elected as new members of the supervisory board

Bjørn Gulden, Chief Executive Officer of PUMA SE:

"The first quarter of 2019 was the best quarter PUMA has ever seen. Revenues of € 1,319 million (+15.3% currency adjusted) is the highest PUMA has ever achieved in a quarter and the EBIT of € 143 million (EBIT-margin 10.8%) was also the highest absolute EBIT PUMA has ever achieved. So, it has been a very good start into the year. The growth in all regions and all product divisions shows that we continue to make progress. Even if we have nine more months to go and despite a lot of uncertainty in the market, we feel comfortable that we will achieve our guidance for the full year."

Sales Development:

Sales by regions and product divisions	Q1		growth rates
€ million	2019	2018	Euro	currency adjusted
Breakdown by regions
EMEA	501.7	480.7	4.4%	5.7%
Americas	416.6	347.7	19.8%	16.3%
Asia/Pacific	401.0	302.6	32.5%	28.6%
Total	1,319.3	1,131.1	16.6%	15.3%
Breakdown by product divisions
Footwear	639.3	580.3	10.2%	9.3%
Apparel	468.4	364.1	28.6%	26.9%
Accessories	211.6	186.6	13.4%	11.0%
Total	1,319.3	1,131.1	16.6%	15.3%

First Quarter

First Quarter 2019

PUMA's sales growth continued in the first quarter of 2019. Sales rose by 15.3% currencyadjusted to € 1,319.3 million (+16.6% reported) compared to € 1,131.1 million last year. The regions Asia/Pacific, driven by China, and the Americas contributed with double-digit sales growth, while sales in EMEA increased solidly. In terms of divisions, Apparel was the main growth driver in the quarter, followed by Accessories and Footwear. The categories Running and Training, Teamsport, Motorsport and Golf on the performance side as well as Sportstyle recorded all strong growth. The double-digit increase in both wholesale and direct-toconsumer sales underlines a well-balanced growth of our business.

The gross profit margin improved by 80 basis points from 48.2% to 49.0%. The increase resulted from a favorable product mix with higher growth in Apparel and a favorable regional sales mix with higher sales growth in the Asia/Pacific region. Currency effects also had a slight positive impact on the gross profit margin development in the first quarter.

Operating expenses (OPEX) rose by 16.8% to € 510.7 million in the first quarter. The increase was mainly caused by higher sales-related variable costs, including logistics costs as well as higher marketing and retail investments.

The operating result (EBIT) improved by 27.0% from € 112.2 million to € 142.5 million in the first quarter 2019 due to a strong sales growth combined with a higher gross profit margin. This corresponds to an EBIT-margin of 10.8% compared to 9.9% in the first quarter last year.

Net earnings went up by 40.1% from € 67.4 million last year to € 94.4 million in the first quarter of 2019, supported by an improved financial result. As a consequence, earnings per share improved from € 4.51 to € 6.31.

Working Capital

Despite the significant sales growth, working capital rose by only 7.1% from € 791.0 million to € 846.9 million. Inventories were up by 19.3% to € 907.5 million due to management of supplier capacities and to support the growing demand in the upcoming quarters. Trade receivables rose by 12.3% from € 685.0 to € 769.2 million. On the liabilities side, trade payables and other current liabilities increased by 17.1% to a total of € 1,004.8 million (last year: total of € 858.2 million).

Effects from first-time application of IFRS 16 Leases and related extension of the balance sheet

The new lease standard (IFRS 16) has to be applied since the beginning of this year. This led to a significant extension of the balance sheet total as of March 31, 2019. The capitalization of the 'rights of use' from former operating-lease contracts at the amount of € 635.6 million and the recognition of a corresponding lease liability on the balance sheet were the reasons for the increase of non-current assets and liabilities. A lease liability of € 116.9 million is included in other current liabilities and € 535.1 million are included in other non-current liabilities. This extension of the balance sheet resulted in a negative impact on the equity ratio, which therefore decreased from 57.9% at year-end 2018 to 44.5% at the end of the first quarter 2019.

The effects from the first-time application of IFRS 16 on the profit and loss statement of the first quarter 2019, however, were not material. IFRS 16 has had a slight positive effect on the operating result (EBIT) of € 3.8 million. Including the additional interest expense of € 6.6 million due to IFRS 16 and further deferred tax effects (+ € 0.8 million), the impact on net earnings in the first quarter 2019 in total was a negative amount of € 2.0 million.

Please refer to the Notes to the Consolidated Financial Statements as of December 31, 2018, chapter 1 General, for a detailed description of the new lease accounting standard and the effects of the first-time application of IFRS 16.

Outlook 2019

After a strong start into 2019 both in terms of sales and profitability, we confirm our guidance for the full-year 2019, which was provided on February 14, 2019:

• Sales: currency-adjusted growth of around 10%
• Gross profit margin: slight improvement compared to last year (2018: 48.4%)
• OPEX: increase at a slightly lower rate than sales
• EBIT: in a range between € 395 million and € 415 million
• Net earnings: significant improvement

		First Quarter
Income Statement	Q1/2019	Q1/2018	Devi-
	€ million	€ million	ation
Sales	1,319.3	1,131.1	16.6%
Cost of sales	-672.4	-585.6	14.8%
Gross profit	646.8	545.5	18.6%
- in % of consolidated sales	49.0%	48.2%
Royalty and commission income	6.4	4.1	56.1%
Other operating income and expenses	-510.7	-437.3	16.8%
Operating result (EBIT)	142.5	112.2	27.0%
- in % of consolidated sales	10.8%	9.9%
Financial result / Income from associated companies	-4.0	-10.5	-61.4%
Earnings before taxes (EBT)	138.5	101.8	36.1%
- in % of consolidated sales	10.5%	9.0%
Taxes on income	-37.4	-28.1	33.1%
- Tax rate	27.0%	27.6%
Net earnings attributable to non-controlling interests	-6.7	-6.3	6.2%
Net earnings	94.4	67.4	40.1%
Earnings per share (€)	6.31	4.51	40.1%
Earnings per share (€) - diluted	6.31	4.51	40.1%
Weighted average shares outstanding (million)	14.951	14.946	0.0%
Weighted average shares outstanding - diluted (million)	14.951	14.946	0.0%

Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.

5

Balance Sheet	Mar. 31,'19	Mar. 31,'18	Devi-	Dec. 31,'18
	€ million	€ million	ation	€ million
ASSETS
Cash and cash equivalents	420.4	296.8	41.6%	463.7
Inventories	907.5	760.4	19.3%	915.1
Trade receivables	769.2	685.0	12.3%	553.7
Other current assets (working capital)	175.0	203.8	-14.1%	187.7
Other current assets	79.3	22.5	-	72.6
Current assets	2,351.4	1,968.5	19.4%	2,192.8
Deferred taxes	240.7	202.7	18.7%	207.6
Other non-current assets	1,489.6	761.3	95.7%	806.8
Non-current assets	1,730.3	964.0	79.5%	1,014.4
Total Assets	4,081.8	2,932.6	39.2%	3,207.2
LIABILITIES AND SHAREHOLDERS' EQUITY
Current financial liabilities	257.1	52.8	-	20.5
Trade payables	559.3	471.4	18.6%	705.3
Other current liabilities (working capital)	445.5	386.8	15.2%	447.3
Other current liabilities	155.4	172.6	-10.0%	22.1
Current liabilities	1,417.2	1,083.6	30.8%	1,195.2
Deferred taxes	80.9	37.2	117.6%	47.7
Pension provisions	29.5	29.1	1.5%	28.9
Other non-current liabilities	738.3	85.4	-	213.1
Non-current liabilities	848.7	151.7	-	289.7
Shareholders' Equity	1,815.8	1,697.3	7.0%	1,722.2
Total Liabilities and Shareholders' Equity	4,081.8	2,932.6	39.2%	3,207.2

Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.

Financial Calendar FY 2019:

February 14, 2019	Financial Results FY 2018
April 18, 2019	Annual General Meeting
April 26, 2019	Quarterly Statement Q1 2019
July 31, 2019	Interim Report Q2 2019
October 24, 2019	Quarterly Statement Q3 2019

The financial releases and other financial information are available on the Internet at "about.puma.com".

Media Relations:

Kerstin Neuber - Corporate Communications - PUMA SE - +49 9132 81 2984 - kerstin.neuber@puma.com

Investor Relations:

Johan-Philip Kuhlo - Head of Investor Relations - PUMA SE - +49 9132 81 3170 - investor-relations@puma.com

Notes to the editors:

• The financial reports are posted on www.about.puma.com.
• PUMA SE stock symbol: Reuters: PUMG.DE, Bloomberg: PUM GY, Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

Notes relating to forward-looking statements:

This document contains forward-looking statements about the Company's future financial status and strategic initiatives. The forward-looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

PUMA

PUMA is one of the world's leading Sports Brands, designing, developing, selling and marketing footwear, apparel and accessories. For 70 years, PUMA has established a history of making fast product designs for the fastest athletes on the planet. PUMA offers performance and sport-inspired lifestyle products in categories such as Football, Running and Training, Basketball, Golf, and Motorsports. It engages in exciting collaborations with renowned design brands to bring innovative and fast designs to the sports world. The PUMA Group owns the brands PUMA, Cobra Golf and Dobotex. The company distributes its products in more than 120 countries, employs more than 13,000 people worldwide, and is headquartered in Herzogenaurach/Germany.