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The central objective of PUMA’s corporate strategy is to become themost desirable Sportlifestyle brand in the world. To accomplish thisgoal, PUMA aims to achieve desirability by combining design and innovation, a clear distribution channel strategy, and brand buildingmarketing initiatives.

Innovation has been a constant throughout PUMA’s history and a cornerstone of PUMA’s growth over the past several years. By incorporating diverse sport and lifestyle influences into our productsand by always asking ourselves how can we do things differently, we have forged a unique look and aesthetic identity. And to helpensure that PUMA continues to develop fresh and exciting product, we haveadopted an organiza-tional structure that isgeared towards recog-nizing and incubatingideas throughout the company. The result should always be truly innovative product that reflects our long tradition of top performancecombined with distinctive and unique PUMA signature design.

PUMA’s distribution is equally important in contributing to brand desirability by making sure the right products get to their targeted consumers in the proper channels. Our distribution system also workstogether with product lifecycle management that enables us to controlbrand visibility and extend PUMA’s market potential.

Desirability is further enhanced by marketing that develops the brandas an icon at the epicenter of sportlifestyle, creating sustainable brandequity.

PUMA supports these efforts with a continuous drive to improve operational efficiency. Our decentralized organization allows for theplacement of our competencies in locations where they will be mosteffective and enables PUMA to realize speed and efficiency throughoutthe supply chain, and ultimately to better service both our wholesalecustomers and our end consumers.

BRAND STRATEGYTO BECOME THE MOST DESIRABLE SPORTLIFESTYLE BRAND


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PUMA’s marketing aspires to develop an iconic brand that defines theculture of Sportlifestyle. In a world of evolving media forms that canoften overwhelm, PUMA focuses on creating a differentiating yetunmistakably clear brand message that resonates with our consumers.

In 2004, PUMA’s core brand campaigns - Italia, Jamaica, and Hello –incorporated PUMA athletes in a way fitting to our brand. We portraythem with distinctly human qualities – spontaneity, authenticity, and

individualism – all characteristicsthat reinforce PUMA brand values. These communicationsstrengthen our link to sports, but with a lifestyle edge that

remains relevant to our consumers. And in the process PUMA forms a distinctive sportlifestyle identity.

Throughout 2005, our marketing will use fresh stories and themes tocontinue to highlight PUMA’s point-of-difference. In addition, our newpartnerships with Ferrari and Michael Schumacher provide anotherplatform to communicate PUMA’s unique mix of performance and cutting-edge design, while our “New Stuff” campaign focuses on andinjects personality into the new products in our collections.

Above all, PUMA’s marketing will always strive to surprise, stimulate,entertain and engage. By constantly delivering the unexpected andchallenging perceptions, PUMA aims to continue to be a defining voicein the world of Sportlifestyle.

MARKETINGDEVELOPING AN ICONIC BRAND THAT DEFINES SPORTLIFESTYLE


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Now in its second season, the “Hello” print campaign, shot by famedphotographer Juergen Teller, explores and portrays PUMA’s brand personality. As PUMA’s visibility increases, the photo series helps defineand refine PUMA’s brand messageto the consumer audience. Teller isknown for his intimate portraits andability to capture the authenticity ofhis subjects. As a result, “Hello”portrays life with a realism that is true to PUMA. The campaign revealsthe emotional heart of PUMA - a brand that entertains and encouragesself-discovery.

In continuation of the successful 2003 campaign, which offered a natural view of models in everyday life situations, the 2004 photoseries incorporated PUMA athletes for the first time. Sports championssuch as Italian national goalkeeper Gianluigi Buffon, baseball starJohnny Damon and the young Jamaican sprinting sensation Usain Boltare portrayed wearing PUMA’s modern Sportlifestyle product with theprimary focus however not being on the product, but rather on thespontaneity of the moment.

HELLOEXPLORING PUMA’S BRAND PERSONALITY


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With “New Stuff” PUMA announced a new ad campaign at the end of 2004 which, following the “Hello” campaign that communicated PUMA’s personality, complements the brand’s image through a product-focused approach.

The “New Stuff” campaign, launched globally in December 2004, highlights unique new product offerings from PUMA that exemplify thebrand’s signature design aesthetic.Visually, the campaign is very freshand clean; the product is featured ona crisp white background. In TV spots,an animal interacts with the product inan adoringly distinctive way, while theprint advertising reflects the focused simplicity and whimsical nature of the TV spots. Both the TV campaign and the subsequentprint execution will run through Q1 of 2005.

NEW STUFFHIGHLIGHTING PUMA’S DESIGN INNOVATIONS


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PUMA’s 2004 motorsport lineup included six Formula One teams: BMWWilliams, Mild Seven Renault, Sauber Petronas, Jordan Grand Prix,Minardi and Jaguar Racing. At the end of 2004, PUMA entered into partnership with Ferrari, rounding out PUMA’s unmatched Formula One portfolio. From 2005 on, PUMA will be the official licensee of replica and fan merchandise as well as supplier of ScuderiaFerrari.

With 14 World Constructors’ Championship titles, Ferrari is the mostsuccessful Formula One team of all time and their tradition, innovativedesign, Italian fashion finesse as wellas their combination of high-perform-ance and lifestyle makes them a perfect match for PUMA. This highprofile addition, coupled with our continued cooperations in othermotorsport disciplines such as Rally Racing, Touring Car and PorscheSupercup, solidifies our position as motorsport category leaders.

A separate new agreement was reached with Ferrari’s top driver and seven-time F1 World Drivers’ Championship winner MichaelSchumacher, who will wear the “Future Cat” racing shoe in the 2005season. Beyond maximizing brand exposure on the racetrack, bothnew partnerships pose an invaluable opportunity for us to furtherdevelop the motorsport as a significant Sportlifestyle segment and to use the different motorsport platforms for many unique product types and silhouettes.

FERRARIHIGH PERFORMANCE AND CUTTING EDGE DESIGN


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Our partnership with the Jamaican Olympic Association hit a high pointin the year of the Summer Olympic Games. In the run-up to the Athens

Games PUMA passed the relay baton toJamaica by launching the ad campaign“Stick, Stick, Stick”. The campaign celebrated the Jamaica Athletics Team’sdominance in the 4x100 and 4x400

relay events and refers to the excitement and intensity of the batonexchange.

Living up to their reputation, the women’s teams secured medals in both relay competitions, with one of the overall Olympic Games highlights being the Jamaicans blazing to gold in the 4x100m women’srelay event wearing their new innovative PUMA speed suits.

In addition to working with the Jamaican Olympic Association, PUMAalso continues to support the Jamaican community with several grassroots programs that display the complementary relationshipbetween the brand and Jamaican culture with the infusion of sport,music, playfulness and energy.

JAMAICA“STICK, STICK, STICK”


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PUMA Retail continues to evolve as an increasingly important part ofPUMA’s corporate strategy. In 2004 we opened 19 concept stores,bringing the company total to 46 doors (including puma.com).

The growth of PUMA Retail enables us to provide more consumers with an enhanced PUMA brand experience and serves as a

stronger distribution for ourproduct innovations. By creatinga unique shopping environmentthat engages, surprises, andinteracts, our retail stores add

significant depth to the PUMA brand – resulting in an opportunity forconsumers to discover even more of PUMA.

Additionally, being closer to our consumers via PUMA Retail allows usto better interpret, meet and deliver on their needs. The result is thatPUMA is a more responsive, consumer-driven company.

RETAILENHANCING THE PUMA BRAND EXPERIENCE


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Corporate social responsibility (CSR) is becoming ever more importantin today’s global business community. For PUMA, as an internationalplayer in the sporting goods industry and engaged in the worldwideproduction process, CSR goes well beyond auditing factories accordingto industry standards. The development of tools and practices thatenable PUMA to maximize its social responsibility is a continualprocess. Flexibility, innovation and refinement are important for successful CSR at PUMA.

Through a continuous improvement of our S.A.F.E. (SocialAccountability and Fundamental Environmental Standards) activitieswe have managed to establish a system that helps to ensure highsocial and environmentalstandards along our entiresupply chain. Coupled withan active dialog, theseactivities create a platformthat allows suppliers toimplement best practices and to improve their own environmental andsocial management systems at the point of production. Using this symbiotic process, we established PUMA as an active partner in the implementation of CSR at our suppliers in areas beyond factoryconditions.

A recently conducted S.A.F.E. internal survey indicates that theseefforts are beneficial to our suppliers. Since 2002 when we first implemented our statistical survey, 63% of suppliers have improved in S.A.F.E. related issues. This progress at our suppliers results inincreased worker satisfaction and competitiveness on the labor andthe sales market.

In November 2004 PUMA conducted its second multistakeholder meeting with participants including international non-governmentalorganizations (NGOs), the International Textile and Leather Union,ITGLWF, the International Labour Organization (ILO) and the FairLabor Association (FLA). This time, in contrast to the first meeting lastyear when emphasis was laid on the retail sector, four major supplierswere invited to contribute to the discussion. At mutual agreement,specific issues have been identified to create a common basis forfuture cooperation between the attendees.

At the start of 2004 PUMA joined the Fair Labor Association. Since thebeginning of PUMA’s membership, several unannounced externalaudits have been conducted with the results to be published on the FLA homepage. With our membership in the FLA, PUMA has committed itself to external and independent factory audits and again demonstrates our transparency in CSR issues.

S.A.F.E.SOCIAL ACCOUNTABILITY AND FUNDAMENTAL ENVIRONMENTAL STANDARDS

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