Statement regarding the business development and overall situation of the Group

Statement regarding the business development and the overall situation of the Group

Despite the solid sales growth and our progress in strategic initiatives, we are not satisfied with our profitability in the past financial year. We have therefore initiated a comprehensive efficiency programme, 'nextlevel', with the aim of optimising costs and translating sales growth into higher profitability growth. The 'nextlevel' programme aims to achieve an EBIT margin of 8.5% by 2027 through optimising direct and indirect costs. PUMA's strategy, which is aimed at strengthening the brand and increasing PUMA's brand heat, will therefore be supplemented by the nextlevel programme. The ongoing investments in the brand and the nextlevel programme are intended to ensure the improvement of the underlying operating result from 2025 onwards and to form the basis for sustainable and accelerated future growth.

With regard to the consolidated balance sheet, we believe that PUMA continues to have a very solid capital base. As of the balance sheet date, the PUMA Group's equity amounted to € 2.8 billion and the equity ratio was 39.6%.

Inventories are at a healthy level at the end of 2024, with a strong increase in goods in transit. Our focus on working capital management helped to reduce the increase in working capital when compared with the previous year. This is also reflected in the improvement in the cash flow from operating activities and free cash flow. Our cash and cash equivalents amounted to € 368.2 million as of the balance sheet date. In addition, the PUMA Group has unutilised credit lines totalling € 1,360.2 million at its disposal.

The positive net income enables the Management Board and Supervisory Board of PUMA SE to propose a dividend of € 0.61 per share for the financial year 2024 at the Annual General Meeting on 21 May 2025. This corresponds to a payout ratio of 32.3% of consolidated net income according to IFRS. PUMA's adjusted dividend policy for 2024 provides for a payout ratio of 25% to 40% of the consolidated net income. In addition, the first tranche of the share buyback programme will continue with a remaining volume of € 50 million until 6 May 2025. The share buyback complements the dividend policy by a further 10% - 25% of the net income to achieve a total payout ratio of up to 50% of the consolidated net income.