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\\nKPIs: \\n• Percentage of Apparel and Accessories with 50% recycled or certified material \\n• Percentage of Footwear with at least one recycled or certified component \\n• Percentage of recycled polyester used in Apparel and Accessories \\nThe PUMA Environmental Profit and Loss Account (EP&L) attributes more than 50% of our environmental \\nimpact to material and raw material production. Against this background, we have decided to prioritize the \\nlarge-scale use of certified or recycled raw materials. In our 10FOR25 strategy, we have set 100% targets for \\nthe raw materials of cotton, polyester, leather, and cardboard. \\nIn addition to measuring the use of recycled or certified materials, we also determine the percentage of all \\nproducts made of such materials. As defined in our PUMA Sustainability Index, or S-Index, S-Index-\\napproved apparel or accessories products contain at least 50% certified or recycled materials by weight. For \\nfootwear, we currently measure S-Index conformance by including one or more main components* made \\nfrom certified or recycled materials. \\nIn 2021 we rolled out an e-learning toolkit on our PUMA S-Index for the PUMA family. The training allows \\ndesigners, developers, and product managers to understand which materials qualify as more sustainable, \\nhow the PUMA S-Index is calculated, and which certifications need to be in place to externally communicate \\non a product level. \\nIn 2023, 85% of our product by volume met our S-Index definition. We are on track to meet our goals of 90% \\nfor 2025. \\n \\n \\n \\n \\n \\n \\n \\n* \\nMain component in the upper includes the visible upper and its components, linings, sockliner, and strobel as the only non-\\nvisible component. They can be made of textile, leather, synthetic (PU) or TPU. It excludes trims such as eyelets, laces, \\ncounters, decorations, etc. Main components in the bottom includes outsoles, midsoles, and insoles. They can be made of \\nRubber, PU, TPU, EVA. It excludes trims and decorations. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n166 \\n↗ T.44 CERTIFIED OR RECYCLED PRODUCTS \\nProduct Category \\nStyles 2023 \\nVolume 2023 \\nTarget 2025 \\nApparel with at least 50 % certified or recycled material \\n77 % \\n87 % \\n90 % \\nAccessories with at least 50 % certified or recycled material \\n20 % \\n40 %* \\n90 % \\nFootwear with at least one certified or recycled component \\n89 % \\n93 % \\n90 % \\nTotal \\n75 % \\n85 % \\n90 % \\n \\n \\n \\n \\n \\n* \\nExcluding products from stichd; for further details on the reporting scope please refer to the Scope of the Report section. \\nIn 2023 we continued to develop and design our collections and individual styles using recycled materials. \\nHighlights include the use of our RE:FIBRE technology in our Teamsport jerseys. The jerseys made with \\nRE:FIBRE are made from at least 95% of recycled textile waste and other used materials made of polyester. \\nWe also continued our Downtown collection from Sportstyle and accessories. The different styles in \\nDowntown are made using 20-30% recycled cotton, while the accessories are made from at least 20% \\nrecycled content. Another highlight includes the scaling of our Caven shoe, which is made with at least 20% \\nrecycled materials in the upper and at least 10% recycled materials in the bottom. Our Downtown collection \\nexceeded 1 million pieces in 2023 and we produced 3 million Caven shoes for the Spring Summer and \\nAutumn Winter collections in 2023 combined. \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nPUMA Caven contains at least 20% recycled content in the upper and 10% recycled content in bottom of the shoe. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n167 \\nPRODUCT LIFE CYCLE ASSESSMENT \\nWe continued the Life Cycle Assessment (LCA) studies of our product portfolios in 2023. The outcomes of an \\nLCA act as a quantifiable measure of our efforts towards embedding sustainability in our products by \\nexploring ways to make our product value chains safer, cleaner and more sustainable. It also encourages \\ninnovation in our products and processes so that we can meet increasing social and business expectations \\nregarding sustainability and transparency. Sphera, a leading consulting organisation in the field of LCA, \\nconducted LCA studies to consider all of the elements of the life cycle, from the overall manufacturing \\nincluding supply of material and energy carriers through to the end of life, when analysing the \\nenvironmental performance of the products. The LCAs were performed as per ISO 14040 and ISO 14044 \\nrequirements. A third-party critical review panel was commissioned to peer review the work and ensure \\ncompliance with the mentioned standards. \\nLCA OF TWO PRODUCTS \\nWe completed a screening LCA study for two of our top products, the PUMA POPCAT 20 sandals, and the \\nPUMA Smash v2L shoes, to map the environmental footprint of these products across their entire value \\nchains (cradle to grave), excluding the consumer use phase. This helped us to understand the hotspots in \\nthe value chain (the maximum impacts in terms of climate, energy and water), and to identify sustainable \\noptions in various phases to improve the product’s environmental footprint. \\n \\n \\n \\n \\n \\n \\n \\n \\nThe results of the analysis can be summarised as follows: \\n↗ G.30 GLOBAL WARMING POTENTIAL \\n \\n49.07%\\n69.61%\\n40.37%\\n21.38%\\n0.29%\\n0.23%\\n9.94%\\n8.78%\\nSandals POPCAT20\\nShoes SMASH V2L\\nManufacturing\\nRaw Material\\nEnd of Life\\nUse Phase\\nShoe PUMA SMASH V2 L, gross \\nweight 0.955 kg/pair \\nSandal PUMA POPCAT 20, gross \\nweight 0.381 kg/pair \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n168 \\nFor the POPCAT20 sandals, the global warming potential (GWP) in kg CO2e was mainly influenced by raw \\nmaterials which include polyester fabric, chemicals etc. (49.07%), manufacturing energy (40.37%) and End of \\nLife (9.94%). Ethylene Vinyl Acetate (EVA) and PU Synthetic are the major contributing materials. \\nFor the SMASHv2L shoes, the global warming potential (GWP in kg CO2e) was mainly influenced by materials \\nwhich include body material, parts and components (69.61%), manufacturing energy (21.38%), and end-of-\\nlife (8.78%). Polyester fabric and rubber are the major contributing materials. \\nFootwear usually does not require extensive cleaning during its lifetime, and hence the impact of the \\nconsumer use phase is negligible. Therefore, the GHG emissions of the use phase from both of the footwear \\nis not considered. However, the end-of-life phase includes reuse, recycling, incineration, and landfilling \\nbased on European scenarios, which contributes to GWP impacts of 9.94% for the POPCAT20 sandals and \\n8.78% for the SMASHv2L shoes. \\n \\n↗ G.31 PRODUCT ENVIRONMENTAL FOOTPRINT\\n1-2 \\n \\n1 \\nPrimary energy is the energy that is harvested directly from natural resources: coal, oil, natural gas and uranium. \\n2 \\nBlue water is water that has been sourced from surface or groundwater resources and is either evaporated or incorporated \\ninto a product. \\n \\nFor the POPCAT20 sandals, the total global warming potential is 1.61 kg CO2e. The total primary energy \\ndemand is 32.36 MJ with major contributions from ethylene vinyl acetate (EVA) (60.60%) and PU Synthetic \\n(11.48%). The total blue water consumption is 31.02 kg with major contributions from the raw material PU \\nSynthetic blend (51.85%) which contains 52% recycled polyester and 48% polyurethane. The remaining \\ncontribution comes from other materials, chemicals, electricity and fuel consumption. \\nFor the SMASHv2L shoes, the total global warming potential is 4.61 kg CO2e. The total primary energy \\ndemand is 90.38 MJ with major contributions from the polyester fabric (30.04%) and rubber (22.04%). The \\ntotal blue water consumption is 41.33 kg with major contributions from PU-coated leather (33.41%). \\nPOPCAT 20 sandals have a significantly smaller (65%) carbon footprint than SMASH v2L shoes. One reason \\nfor this is the lower net weight of POPCAT 20, which is 60% lower. Looking at the carbon footprint of \\nmaterials, in the case of POPCAT 20, 64.5% of climate impact comes from the Ethylene Vinyl Acetate (EVA) \\nwhile for Smash V2L, the majority of the impact comes from polyester and rubber, which accounts for 65.4% \\nof the carbon footprint of the raw material of the product. This indicates that low-carbon material such as \\nEVA has also contributed to the lower carbon footprint of POPCAT 20. Looking at energy consumption during \\n1.61\\n4.61\\nSandals\\nPOPCAT20\\nShoes\\nSMASHv2L\\nClimate Change\\n[kg CO2e/product]\\n32.36\\n90.38\\nSandals\\nPOPCAT20\\nShoes\\nSMASHv2L\\n31.02\\n41.33\\nSandals\\nPOPCAT20\\nShoes\\nSMASHv2L\\nPrimary Energy Demand (Net)\\n[MJ/product]\\nBlue Water Consumption\\n[kg/product]\\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n169 \\nproduction, POPCAT 20 consumed 52% less electricity than SMASH v2L. This can be attributed to the lower \\nnet weight and the simplicity of the POPCAT 20 product design. \\nThough the SMASH v2L has a larger carbon footprint than the POPCAT 20, it is much smaller (4.61 kg CO2e) \\nwhen compared to previously conducted LCAs of footwear products in 2021 i.e. the Future Rider Play on \\n(9.49 kg CO2e) and Velocity Nitro (7.6 kg CO2e). Both the Future Rider Play on and Velocity Nitro have a lower \\nnet weight of 0.78 kg and 0.72 kg as compared to the SMASH v2L which has a net weight of 0.955 kg/pair. The \\nSMASH v2L is made of recycled materials such as recycled polyester, recycled PU, and recycled rubber \\nalong with recycled packaging materials and the quantity of leather used is much lower, which explains the \\nlower carbon footprint when compared to the Rider Play on and Velocity Nitro. \\nThe key takeaways from the LCA study are, to make future footwear products lighter, increase the usage of \\nlow-impact materials such as recycled polyester or recycled PU and reduce the use of high-impact \\nmaterials such as virgin PU and virgin polyester. The supply chain for footwear products is complex and \\ninvolves multiple stages such as raw material extraction, processing, finishing, assembly, distribution and \\nend of life. The LCA study is used to understand the value chain environmental impacts of our products. \\nPUMA intends to use the outcomes of the study to raise internal awareness and improve the product’s \\nenvironmental footprint by increasing the use of more sustainable materials (recycled or biosynthetic), \\nimproving resource efficiency, optimizing energy use, promoting renewable energy in the value chain, and \\nenhancing the circularity of our products. \\nCOMPARATIVE LCA VIRGIN POLYESTER VS. PET RECYCLED POLYESTER VS. RE:FIBRE POLYESTER \\nPRODUCTS \\nIn 2023, PUMA engaged Sphera, Inc. to conduct a comparative Life Cycle Assessment (LCA) of three types of \\nsports jerseys made from virgin polyester, PET recycled polyester and RE:FIBRE, in our Turkey supply chain. \\nThe RE:FIBRE process uses mainly polyester material from factory offcuts, faulty goods and \\nused clothes. PET recycled polyester comes from PET plastic bottles. \\nThe LCAs were performed using the “cradle to grave” approach. The objective was to quantify the \\nenvironmental impacts associated with the production of these three types of jerseys using the LCA \\napproach. The products studied were: \\n \\nThe scope of this study includes raw material sourcing and extraction, transportation of raw materials to \\nthe manufacturing location, manufacturing of the jersey products, product distribution, product use phase \\nand end of life (EoL) of product and packaging. \\nPET recycled polyester jersey \\nNet weight 0.964 kg \\n(88% Mechanically Recycled \\nPolyester and 12% Virgin Polyester) \\nRE:FIBRE polyester jersey \\nNet weight 0.904 kg \\n(57% Chemically Recycled \\nPolyester, 34% Mechanically \\nRecycled Polyester, and 9% \\nVirgin Polyester) \\nVirgin polyester jersey \\nNet weight 1.316 kg \\n(100% Virgin Polyester) \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n170 \\nThe LCA study indicates that per kg, the PET recycled polyester jersey has the smallest carbon footprint \\n(13.19% lower as compared to virgin polyester jersey) among the three products compared in the study. \\nWhereas, per kg, the RE:FIBRE polyester jersey has a 7.31% lower Global Warming Potential (GWP) impact \\nwhen compared to the virgin polyester jersey. The RE:FIBRE polyester jersey has 57% chemically recycled \\nfibre which has a higher GWP impact as compared to mechanically recycled fibre but a lower one than virgin \\nrecycled fibre. \\nThe total primary energy demand also exhibits a similar trend, due to same factor as the carbon \\nfootprint. The PET recycled polyester jersey and RE:FIBRE Polyester Jersey are 16.15% and 12.13% lower \\nrespectively per kg than the virgin polyester jersey. \\nThe LCA study also indicates that, the water consumption per kg of PET recycled polyester jersey and \\nRE:FIBRE polyester jersey is 1.10% and 2.82% higher than per kg value of the virgin polyester jersey. \\nAlthough textile-to-textile technology currently has a larger environmental footprint than mechanical \\nrecycling, through the RE:FIBRE programme, PUMA is keen to address the challenge of textile waste via a \\nlong-term solution for recycling. The technology also looks to diversify the fashion industry’s main source of \\nrecycled polyester in garments to make it less reliant on clear plastic bottles. We also believe that this \\ntechnology has room to become more energy efficient in future. \\nManaging waste has become a necessity, which is why PUMA is ramping up its investment into resource-\\nefficient manufacturing processes in a move to reduce textile waste. Textile waste build-up in landfills is an \\nenvironmental risk. Rethinking the way we produce and moving towards a more circular business model is \\none of the main priorities of our Sustainability Strategy. \\nTo help make the technical process of RE:FIBRE more digestible for the everyday consumer who wants to \\nknow more, PUMA has created a RE:FIBRE process explainer video, which can be accessed here. \\nThe four-step process of RE:FIBRE: \\n• Collect and Sort: collecting and sorting textile waste and other previously wasteful materials. \\n• Shred and Mix: shredding and mixing the collected materials \\n• Dissolve, Filter and Polymerize: Dissolving the shredded polyester and removing dyes through a \\nchemical recycling process. \\n• Melt, Spin, Knit and Sew: The melting makes the newly produced polymers ready to be spun and sewn \\ninto shape to create good as new RE:FIBRE fabric which can be recycled again and again. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n171 \\n↗ G.32 ENVIRONMENTAL FOOTPRINT OF POLYESTER JERSEYS\\n1-2 \\n \\n1 \\nPrimary energy is the energy that is harvested directly from natural resources: coal, oil, natural gas and uranium. \\n2 \\nBlue water is water that has been sourced from surface or groundwater resources and is either evaporated or incorporated \\ninto a product. \\n \\nCOMPARATIVE LCA OF 3 TYPES OF COTTON FABRIC \\nPUMA engaged Sphera to conduct a comparative Life Cycle Assessment (LCA) of one kilogramm of 100% \\nvirgin piece dyed cotton fabric, 75/25 virgin/undyed recycled piece dyed cotton fabric and 75/25 \\nvirgin/coloured recycled piece dyed cotton fabric. \\nPiece dyed fabric is fabric made of grey yarns which are dyed, and is different to yarn dyed fabric: a fabric \\nthat is knitted using dyed yarn. \\nLCAs are performed using the “cradle to gate” approach. Since this is the “cradle to gate” approach, \\nconsumer use phase and fabric end-of-life impacts for the cotton fibre products were not considered in this \\nLCA study. \\nThe main objective of the study is to quantify the environmental impacts associated with the production of \\nthese fabrics across various life cycle stages of the manufacturing process, including the supply of raw \\nmaterials and energy carriers. The primary data considered for the study was collected from three PUMA \\nsuppliers stretched across two regions, Bangladesh (two factories) and Turkey (one factory). The data \\ncollected includes data for all the production processes such as collection and pre-processing, yarn \\nspinning, knitting and inspection, pre-treatment, dyeing, compacting and drying. \\nThe LCA study indicates that for one kg of 75/25 virgin/undyed recycled piece dyed cotton fabric, the carbon \\nfootprint is 5.83% smaller compared to the 100% virgin piece dyed cotton fabric. This change was mainly \\ninfluenced by the inclusion of 25% undyed recycled cotton material. For 1 kg of 75/25 virgin/coloured \\nrecycled piece dyed cotton fabric, the carbon footprint was smaller by 13% when compared to the 100% \\nvirgin piece dyed cotton fabric. This change was mainly influenced by the inclusion of 25% coloured recycled \\npiece dyed cotton fabric. When comparing these three fabrics, the environmental impacts of 75/25 \\nvirgin/coloured recycled piece dyed cotton fabric were found to be the lowest. This is due to the usage of \\n25% recycled yarn which is recovered from a coloured fabric and hence requires fewer chemicals and less \\nenergy during the dyeing process. \\n22.46\\n19.49\\n20.81\\nClimate Change\\n[kg CO2e/kg of product]\\n606.31\\n508.39\\n532.79\\n964.28\\n974.88\\n991.49\\nPrimary Energy Demand \\n[MJ/ kg of product]\\nBlue Water Consumption\\n[kg/kg of product]\\nGWP\\nPED\\nBWC\\nPET Recycled Jersey \\nVirgin Polyster Jersey \\nRE: FIBRE Polyester Jersey \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n172 \\n↗ G.33 ENVIRONMENTAL FOOTPRINT OF COTTON FABRICS \\n \\nAdditionally, it was found that the most significant carbon footprint impact is related to the conventional \\ndyeing of fabric followed by the impacts of cotton cultivation and yarn spinning. Primary energy demand is \\nlargely driven by the cultivation of cotton, followed by conventional dyeing of fabric. Water consumption is \\nlargely driven by cotton cultivation followed by conventional dyeing, compacting and drying processes. \\nIn the study, we also evaluated the environmental impacts of different types of dyeing technologies such as \\nconventional and Pad-Steam dyeing processes for the three types of fabrics. The Pad-Steam process is a \\ntextile finishing technique used to apply chemicals or dyes to fabric. It is a combination of two steps: \\npadding and steaming. This process is employed to achieve uniform coloration, improved fabric properties, \\nand enhanced performance characteristics. This study was conducted at a factory located in Turkey that \\nuses both technologies. Conventional dyeing for knitted products is typically a batch process in which the \\nfabric is loaded along with water, chemical and dyestuffs and processed for a fixed number of hours based \\non the type of fabric. Whereas, Pad-Steam dyeing is a continuous dyeing process, in which the fabric is dyed \\nby immersing the fabric in the dye solution for a few seconds, immediately pressed through a roller and \\nthen steamed. Pad-Steam dyeing is more resource-efficient as compared to conventional dyeing. This was \\nfurther corroborated by our LCA study. Pad-Steam dyeing was found to have a smaller environmental \\nfootprint than conventional dyeing. It was observed that the Pad-Steam dyeing process has 81.9% less \\nenergy and 80.5% less water consumption as compared to the conventional dyeing process. \\nIt was found that Pad-Steam dyeing for 100% virgin piece dyed cotton fabric has a 34.8% smaller carbon \\nfootprint as compared to conventional dyeing. The corresponding figure for 75/25 virgin/undyed recycled \\npiece dyed cotton fabric was 36.9% and 25.02% for 75/25 virgin/coloured recycled piece dyed cotton fabric. \\nSimilar trends were also observed for primary energy demand and water consumption. \\nThe LCA study clearly indicates that the inclusion of recycled cotton fabrics has a smaller environmental \\nfootprint and hence is to be promoted for future product development. However, there are currently \\ntechnological limitations surrounding increasing recycled cotton to more than 25% in a cotton fabric mix. \\nThis calls for a focus on future innovation in this area. Furthermore, our suppliers could adopt better dyeing \\ntechnologies such as the Pad-Steam dyeing process which has a smaller environmental footprint. \\n \\n8.67\\n8.16\\n7.53\\nClimate Change\\n[kg CO2e/kg of Fabric]\\n190.81\\n170.42\\n160.20\\n1,216.26\\n942.48\\n912.84\\nPrimary Energy Demand \\n[MJ/kg of Fabric]\\nBlue Water Consumption\\n[kg/kg of Fabric]\\nGWP\\nPED\\nBWC\\n75/25 Virgin / Undyed Recycled\\nPiece Dyed Cotton Fabric\\nVirgin Piece Dyed\\nCotton Fabric \\n75/25 Virgin / Coloured Recycled\\nPiece Dyed Cotton Fabric\\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n173 \\nMATERIAL ORIGIN \\nMapping and assessing risk and impact practices in the lower tiers of the supply chain helps us to identify \\nopportunities for improvement. \\n \\nCOTTON \\nIn 2023, we sourced approximately 34,000 tons of cotton. To reach our 100% targets for certified or recycled \\ncotton, we require our suppliers to only source cotton from farms that are licensed or certified as having \\ngood farming and human rights standards, or recycled cotton. 96% of the cotton used in PUMA products \\ncomes from the USA, Brazil, Australia, India, Bangladesh, Vietnam, Indonesia and Turkey. \\nLEATHER \\nIn 2023, we sourced approximately 3,500 tons of bovine leather. We are working on improving the traceability \\nof the leather we use by recording the traceability score of our leather manufacturers certified by the \\nLeather Working Group. The leather used in PUMA footwear mainly comes from the USA (61%), Argentina \\n(27%), Australia (6%) and Brazil (5%). We also monitor our LWG (Leather Working Group) medal-rated \\ntanneries' traceability performance. Most suede tanneries work with agents and intermediaries besides \\ndirect tanneries to guarantee a stable sourcing supply. Suede is a byproduct of the full-grain leather \\nbusiness. This creates a challenge to full traceability. This explains why our suede leather LWG tanneries \\nhave a worse traceability performance than full-grain LWG tanneries. We aim to increase all of our LWG \\nmedal-rated tanneries’ traceability performance over time. \\n \\nMATERIAL CONSUMPTION DATA \\n↗ G.34 CERTIFIED OR RECYCLED MATERIALS DEVELOPMENT\\n1-2 \\n \\n1 \\nCotton and polyester including apparel and accessories material (including trims) \\n2 \\nProliferation for 2023 based on actual data in January - September 2023 and previous data October - December 2022 \\n \\nAs in previous years, a significant percentage of our materials can be attributed to cotton either from the \\nBetter Cotton Initiative, recycled or organic cotton, to polyester that is either bluesign® or OEKO-TEX®-\\ncertified, recycled or bio-based polyester, and to leather sourced from Leather Working Group (LWG)-\\ncertified tanneries or recycled leather. In addition, we only use down feathers certified by the Responsible \\nDown Standard and 84% of our man-made cellulosic (MMCF) is made by green shirt-rated MMCF suppliers \\nwith a proven track record on sustainability based on the Hot Button report from the NGO Canopy. \\n0\\n10\\n20\\n30\\n40\\n50\\n60\\n70\\n80\\n90\\n100\\n2015\\n2016\\n2017\\n2018\\n2019\\n2020\\n2021\\n2022\\n2023\\nYear\\nCotton\\nPolyester\\nCardboard\\nLeather\\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n174 \\nTherefore, more than 87% of our apparel, 40% of our accessories and 93% of our footwear products are \\nalready classified in line with the definition in our PUMA Sustainability Index. \\nCoverage and calculations are more complex for footwear because all of our shoes are made from several \\ncomponents. The main materials we use are polyester, polyurethane, rubber, leather and nylon. In line with \\nour earlier targets, we have achieved 99.7% coverage of leather sourced from LWG-certified tanneries. \\nIn 2023, 99.2% of the cotton used came from certified or recycled sources, as did 85% of our polyester. \\nWe hardly used wool in 2023 (6,566 kg). Nevertheless, we see an increased number of factories certified in \\nline with the Responsible Wool Standard (RWS). We organised a RWS training for our in-scope suppliers in \\nJune 2023, and the positive results were shown by the six RWS-certified factories in our supply chain. We \\naim to reach 100% certified wool in 2025. \\n↗ T.45 DEVELOPMENT OF CERTIFIED OR RECYCLED MATERIAL USAGE* \\nCotton \\nApparel \\nAccessories \\nFootwear \\nTotal \\nBetter Cotton \\n90.6 % \\n23.2 % \\n8.0 % \\n90.3 % \\nRecycled \\n8.6 % \\n16.7 % \\n1.6 % \\n8.6 % \\nOrganic \\n0.3 % \\n0.3 % \\n \\n0.3 % \\nConventional \\n0.6 % \\n59.7 % \\n90.5 % \\n0.9 % \\n \\n \\n \\n \\n \\nPolyester \\nApparel \\nAccessories \\nFootwear \\nTotal \\nRecycled \\n68.4 % \\n29.3 % \\n56.5 % \\n61.8 % \\nOekotex® / bluesign® \\n30.3 % \\n54.5 % \\n8.1 % \\n23.3 % \\nSorona® \\n0.1 % \\n \\n0.2 % \\n0.1 % \\nConventional \\n1.2 % \\n16.2 % \\n35.2 % \\n14.8 % \\n \\n \\n \\n \\n \\nManmade cellulosics \\nApparel \\nAccessories \\nFootwear \\nTotal \\nGreen Shirt-rated fiber producers** \\n82.4 % \\n \\n \\n72.7 % \\nEcovero® \\n12.7 % \\n \\n0.7 % \\n11.3 % \\nConventional \\n4.9 % \\n100.0 % \\n99.3 % \\n16.0 % \\n \\n \\n \\n \\n \\nPolyamide (nylon) \\nApparel \\nAccessories \\nFootwear \\nTotal \\nRecycled \\n26.4 % \\n60.2 % \\n2.0 % \\n19.3 % \\nOekotex® / bluesign® \\n70.8 % \\n38.2 % \\n13.9 % \\n46.9 % \\nConventional \\n2.8 % \\n1.6 % \\n84.2 % \\n33.8 % \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n175 \\nLeather \\nApparel \\nAccessories \\nFootwear \\nTotal \\nLWG medal-rated tannery \\n \\n \\n99.96 % \\n99.7 % \\nRecycled \\n \\n \\n0.04 % \\n0.04 % \\nConventional \\n \\n100.0 % \\n \\n0.22 % \\n \\n \\n \\n \\n \\nRubber \\nApparel \\nAccessories \\nFootwear \\nTotal \\nSynthetic \\n34.7 % \\n52.6 % \\n93.9 % \\n93.0 % \\nNatural \\n65.3 % \\n32.5 % \\n1.2 % \\n1.9 % \\nRecycled \\n \\n15.0 % \\n4.9 % \\n5.1 % \\n \\n \\n \\n \\n \\nPU \\nApparel \\nAccessories \\nFootwear \\nTotal \\nRecycled \\n2.4 % \\n1.5 % \\n2.4 % \\n2.4 % \\nOekotex® / bluesign® \\n93.4 % \\n \\n \\n0.8 % \\nWater-based \\n \\n0.02 % \\n1.1 % \\n1.0 % \\nBio-based \\n \\n \\n0.4 % \\n0.4 % \\nConventional \\n4.3 % \\n98.48 % \\n96.1 % \\n95.4 % \\n \\n \\n \\n \\n \\nDown \\nApparel \\nAccessories \\nFootwear \\nTotal \\nRDS certified \\n100 % \\n \\n \\n100 % \\n \\n \\n \\n \\n \\n \\n* \\nFigures include trims and exclude licensee production as well as production from stichd. For further details on the reporting \\nscope, please refer to the Scope of the Report section. \\n** Green Shirt-rated fiber producers, as set by the annual Canopy Hot Button report, encourage existing fiber suppliers to \\ncommit to CanopyStyle and a Canopy Audit. \\n \\n↗ T.46 CERTIFIED OR RECYCLED MATERIALS BY PRODUCT DIVISION* \\n \\n2023 \\n2025 target \\nApparel \\n \\n \\nCertified or recycled cotton \\n99.4 % \\n100 % \\nCertified or recycled polyester \\n98.8 % \\n100 % \\nCertified or recycled MMCF \\n95.1 % \\n100 % \\nCertified or recycled PU \\n95.7 % \\nNA \\n \\n \\n \\nAccessories \\n \\n \\nCertified or recycled cotton \\n40.3 % \\n100 % \\nCertified or recycled polyester \\n83.8 % \\n100 % \\nCertified or recycled MMCF \\n0.0 % \\n100 % \\nCertified or recycled leather \\n0.0 % \\n100 % \\nCertified or recycled PU \\n1.5 % \\nNA \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n176 \\nFootwear \\n \\n \\nCertified or recycled cotton \\n9.5 % \\n100 % \\nCertified or recycled polyester \\n64.8 % \\n100 % \\nCertified or recycled MMCF \\n0.7 % \\n100 % \\nCertified or recycled leather \\n100 % \\n100 % \\nCertified or recycled PU \\n3.9 % \\nNA \\n \\n \\n \\nL&P paper/cardboard products** \\n \\n \\nRecycled and/or FSC-certified \\n99.4 % \\n100 % \\n \\n \\n \\n \\n* \\nFigures include trims and exclude licensee production as well as production from stichd. For further details on the reporting \\nscope, please refer to the Scope of the Report section. \\n** Including outer cardboard boxes, which were excluded in previous years. \\nIn 2023, the total number of GRS/RCS certified factories has increased to 159 from 145 in 2022. This indicates \\na higher uptake of recycled material due to the launch of more sustainable products in our product mix. \\nIn 2023, we saw an increased number of factories certified by the Responsible Wool Standard. \\n↗ T.47 NUMBER OF FACTORIES WITH CERTIFICATION\\n1 \\nNumber of factories certified \\nGRS/RCS \\nGOTS \\nOCS \\nRDS \\nRWS \\nLWG \\nApparel & Accessories Tier 1 \\nand Tier 2 \\n128 \\n30 \\n23 \\n6 \\n6 \\nNA \\nFootwear Tier 1 and Tier 2 \\n31 \\n0 \\n1 \\nNA \\n1 \\nNA \\n \\n \\n \\n \\n \\n \\n32 Gold \\nLeather Tanneries \\n \\n \\n \\n \\n \\n4 Silver \\n \\n \\n \\n \\n \\n \\n \\n \\n1 \\nGRS: Global Recycling Standard, RCS: Recycled Claim Standard, OCS: Organic Content Standard; GOTS: Global Organic \\nContent Standard; RDS: Responsible Down Standard, RWS: Responsible Wool Standard, LWG: Leather Working Group. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n177 \\nBIODIVERSITY \\nTARGET DESCRIPTION: \\n• Support the industry in setting a science-based target for biodiversity \\n• 100% cotton, leather and down procured from certified sources (shared target) \\n• Zero use of exotic skins and hides \\nRelates to United Nations Sustainable Development Goals 14 and 15 \\n \\nThe world’s biodiversity experts agreed to conserve 30% of the world’s land and oceans by 2030. Biodiversity \\nis also inextricably linked to climate change. \\nConsequently, we have dedicated one of our 10FOR25 sustainability target areas to biodiversity. Most of \\nPUMA’s biodiversity impact is based in the supply chain, particularly to the usage of agricultural raw \\nmaterials. However, we also include biodiversity checks in our annual environmental data collection for our \\nown offices, stores and warehouses around the globe. \\n \\nBIODIVERSITY POLICY \\nAs part of the Fashion Pact, we are committed to supporting the development of science-based targets \\nrelated to biodiversity. \\nIn 2021 we published the PUMA biodiversity policy and animal welfare policy- signed off by our Board of \\nManagement- to create a framework for our approach to biodiversity and animal welfare. These policies are \\navailable for download on our website. \\nThis includes our commitments: \\n• as a supporting partner of the CanopyStyle initiative, to only source our viscose from Green Shirt-rated \\nsuppliers in order to protect endangered forests and species. \\n• to source the leather used in PUMA products solely from manufacturers who implement industry best \\npractice standards of environmental management and traceability, such as the leather working group. \\n• to source all our paper and paper-based packaging from recycled sources and/or Forest Stewardship \\nCouncil-certified sources. PUMA acted as a partner of Canopy’s Pack4Good initiative to collectively \\nreduce any risk of sourcing from ancient and endangered forests by 2022 and promoting next-generation \\nsolutions. \\nAt PUMA we care for the welfare of animals. We do not use animal products which originate from animals \\nthat have been treated inhumanely. Therefore, we aim to implement high welfare and traceability standards \\nand have published an Animal Welfare Policy. PUMA consults animal protection organisations on a regular \\nbasis to review our policies and actions. As a sign of our commitment to animal welfare, we joined the Fur \\nFree Retailer programme and phased out the use of kangaroo leather in 2023. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n178 \\nBIODIVERSITY IN OUR OWN OPERATION \\nWe checked via our annual environmental reporting campaign and confirmed that none of our PUMA sites \\nare located within a protected area. We have identified one site in South Africa, as being located next to a \\nprotected area, which holds a rare species of the plant, Renosterveld Finbos. This site is an office location, \\nand is fenced off from the protected area, so any negative impact on these plants can be ruled out. \\nThere are green roofs which offer additional habitats for insects as well as wildflower meadows and \\nbeehives on our headquarters in Herzogenaurach, as well as on our (outsourced) German central logistics \\ncentre. \\n \\nBIODIVERSITY IN OUR SUPPLY CHAIN \\nMany species, including plants, animals, bacteria and fungi are being threatened with extinction due to \\nhuman activities such as deforestation, putting Earth’s biodiversity at risk. Apparel supply chains are \\ndirectly linked to soil degradation, conversion of natural ecosystems and waterway pollution. Two-thirds of \\napparel shoppers say that limiting the impact on climate change is now more important to them now than \\nbefore COVID-19 (McKinsey: Biodiversity – The next frontier in sustainable fashion). \\nPUMA is a signatory to the Fashion Pact, a global initiative of companies in the fashion and textile industry \\n(ready-to-wear, sport, lifestyle and luxury), all committed to a common core of key environmental goals in \\nthree areas mitigating global warming, restoring biodiversity and protecting the oceans. \\nBiodiversity loss and climate change are interdependent and mutually reinforcing. For example, protecting \\nforests could help reduce greenhouse gas emissions. In turn, the rise of global temperatures increases the \\nrisk of species becoming extinct. In 2019 PUMA published its science-based emissions target (SBT) with the \\nSBT Coalition and joined the Fashion Pact. In 2023 an updated and 1.5 degree aligned science-based \\nemissions target was approved for Scope 1 and 2 by SBT Coalition. \\nPlease see the Climate section of this report to find out about our climate action and progress. \\n↗ T.48 SUSTAINABLY SOURCED NATURAL MATERIALS \\nSub-targets \\n2023* \\n2022* \\n2021 \\nTarget 2025 \\nScience Based Target (SBT) \\nFund Biodiversity \\nLandscape Report \\nFund Biodiversity \\nLandscape Report \\nJoined Fashion \\nPact activities on \\nbiodiversity \\nSBT set \\nCotton (BCI** and/or recycled) \\n99.2% \\n99.9% \\n99% \\n100% \\nLeather (LWG-certified tanneries) \\n99.7% \\n100% \\n99.9% \\n100% \\nDown (RDS-certified) \\n100% \\n100% \\n100% \\n100% \\nSustainably sourced viscose / MMCF \\n84% \\n97% \\n38% \\n100% \\nCardboard and paper (FSC and/or recycled) \\n99.4%*** \\n99.4%*** \\n99% (product \\npackaging supply \\nchain) \\n100% \\n \\n \\n \\n \\n \\n \\n* \\nIncluding trims and excluding licensee production \\n** Better Cotton Initiative (BCI) principle: Biodiversity and Land Use is one of the seven Better Cotton Principles and Criteria. \\nManagement practices address identifying and mapping biodiversity resources, identifying and restoring degraded areas, \\nenhancing populations of beneficial insects, ensuring crop rotation and protecting riparian areas. \\n*** Including outer cardboard \\nMost of the negative impact on biodiversity comes from three stages in the value chain – raw material \\nproduction, material preparation and processing, and end of life. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n179 \\nTo mitigate the risk of biodiversity loss due to the production process, we address environmental pollution \\nrisk through our targets and supplier programmes related to climate, chemicals, water and air. \\nIn 2021 we developed roadmaps for water and waste, which can be found in the Water and Air, and \\nCircularity sections of this report. In 2022 we developed a biodiversity roadmap using the Fashion Pact \\nBiodiversity Strategy Tool Navigator that is in line with SBTN recommendations. \\nAt cotton farming level, Regenerative Agriculture practices aim to reduce the impact of production on soils \\nand promotes soil health by restoring the soil’s organic carbon. Through our partnership with Better Cotton, \\nwe support regenerative cotton farming practices. BCI farmers have to follow these two principles, among \\nothers: \\n• Care for the health of soil: This principle requires farmers to develop a Soil Management Plan. The plan \\nshould include practices that contribute to maintaining and enhancing soil structure and soil fertility, \\nand continuously improving nutrient cycling. \\n• Enhance biodiversity and use land responsibly: This principle requires Better Cotton farmers to adopt a \\nBiodiversity Management Plan to conserve biodiversity on and around their farm. This plan includes \\nregenerative farming practices such as ensuring crop rotation, which helps with soil regeneration. \\nBIODIVERSITY ROADMAP \\nScope: Cotton, Leather, Rubber, Paper, MMCF, Synthetics, Wool \\nBelow are some key focus areas for the coming years. Some measures were implemented in 2022 and 2023 \\nand are covered in this report. \\n• Raise awareness: We see the need to raise awareness internally and will be developing an e-learning on \\nbiodiversity for our staff. We also see the need to increase the awareness of our consumers. We aim to \\nmaintain transparency to keep a strong relationship with stakeholders while providing information about \\nbiodiversity actions. In 2022, PUMA sponsored the Biodiversity Landscape Analysis Report as an \\nopportunity to foster collaboration and knowledge-sharing in biodiversity. Together with Textile \\nExchange, Conservation International and the Fashion Pact, the Biodiversity Landscape Analysis Report \\naims to provide a common reference point on the topic of biodiversity in the textile industry, and to offer \\nconcrete pathways for brands and retailers to deepen their engagement. The report, which was \\npublished in 2023 intends to help companies of all sizes and maturities to begin or continue their \\nbiodiversity journey. \\n• Knowledge of impact: We will explore traceability tools and conduct impact assessments, starting with \\nleather and rubber. We collect material and packaging consumption data on an annual basis for the \\ncountry of origin. For example, only a small percentage of the total leather used in PUMA products \\noriginates from South America, where deforestation is occurring at a rapid pace. Our EP&L identifies \\nhow the environmental impact is distributed along our value chain, for example, land use change per \\ncountry, material type and tier level. The potential financial impact on land use was estimated to be \\napproximately € 100 million in our 2023 EP&L. \\n• Internal action: We will define a KPI to be included in a supplier scorecard (environmental and chemical) \\nand set biodiversity targets as well as traceability targets, starting with leather. We set goals to reach \\n100% cotton, leather, viscose, paper packaging and down-procured from certified sources in 2025. Both \\ncotton farming and cattle ranching require extensive land use and are known to reduce biodiversity, \\n99.2% of cotton used in PUMA products is BCI or recycled cotton. 99.7% of the leather used in our foot-\\nwear is sourced from Leather Working Group (LWG) medal-rated tanneries. Leather traceability is a first \\nstep towards reducing deforestation. We monitor our LWG medal-rated tanneries' traceability \\nperformance and have joined the LWG Traceability working group. We partner with the NGO, Canopy, a \\nCanadian non-profit organisation with the mission to protect the world’s forests, species and climate, \\nand to help advance indigenous communities’ rights. We aim to ensure that our sourcing of man-made \\ncellulosic materials (such as viscose) as well as paper and cardboard, does not contribute to de-\\nforestation. 99.4% of our paper packaging is either recycled and/or FSC-certified. We commit to sourcing \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n180 \\n100% of our viscose from suppliers committed to reducing the risk of sourcing from ancient and \\nendangered forests. In 2023, 84% of viscose was sourced from Green Shirt-rated suppliers. We hardly \\nused wool (6,566 kg in 2023), but we have initiated Responsible Wool Standards certification. We aim to \\nreach 100% certified responsible wool by 2025. \\n• Collaboration and partnership: PUMA joined the Fashion Pact, a global coalition of companies in the \\nfashion and textile industry that is committed to stopping global warming, restoring biodiversity and \\nprotecting the oceans. PUMA joined the Fashion Charter, and committed to sourcing 100% of priority \\nmaterials as preferred materials by 2030 (material for which no natural ecosystems are converted or \\ndeforested). In 2021 we engaged with Canopy, who helped us develop our policy on forest protection. We \\nalso engaged with Canopy‘s initiatives: CanopyStyle and Pack4good. Through these initiatives, we started \\ninvestigating the next generation of raw materials with a focus on biobased materials, such as wheat \\nstraw, as a partial substitute for paper in our shopping paper bags. \\nBIODIVERSITY RISK ASSESSMENT \\nIn 2023, we conducted a biodiversity risk assessment for our key raw materials such as cotton, polyester \\nand leather. For cotton and polyester, we used the Materials Impact Explorer tool provided by Textile \\nExchange. For leather, we used the Biodiversity Risk and Impact Dashboard of Fashion Pact. PUMA is \\ncurrently taking steps to mitigate biodiversity risks and address environmental pollution risks through our \\ntargets and supplier programmes related to the climate, chemicals, water and air. \\nWe evaluated the environmental risk of rubber using the EiQ platform from Elevate. EiQ is a data-driven \\nsupply chain Environmental, Social, and Governance (ESG) due diligence platform used by businesses to \\nenhance ESG risk management. The environmental risk encompasses water use, non-GHG air pollutants, \\nterrestrial ecosystem use, soil pollutants, solid waste and water pollutants. We also mapped our sourcing of \\nthese materials by country. \\nFor cotton and polyester, we mapped our material consumption by country of origin using the Materials \\nImpact Explorer tool to evaluate the potential impact on biodiversity in terms of changes in the state of \\nnature (quality or quantity) which may result in changes to the capacity of nature to sustain social and \\neconomic functions. We also evaluated the risk of dependency in terms of environmental assets and \\necosystem services that an organisation relies on to function. The dependency risk rating for recycled cotton \\nand recycled polyester is not applicable as per the tool used. The outcome of the assessment is \\nsummarised below. The risk profile of a few countries from which PUMA is sourcing cotton and polyester \\nis not available in the tool. However, such countries represent less than 5% of our sourcing volume for \\ncotton and 13% for polyester. \\nAs a next step, we will look at a collaborative approach and join programmes with third-party initiatives to \\nunderstand governance challenges. \\nCotton: In 2023, we sourced 63% of cotton from the USA, followed by Brazil (15%) and Australia (8%). These \\nthree countries have high a risk rating for potential impact. 4% of cotton is sourced from India which a very \\nhigh-risk country. \\nIn terms of dependency risk, the USA, Brazil and Australia are categorised as high-risk countries, whereas \\nIndia is categorised as a very high-risk country. \\nWe have required our suppliers to source only cotton grown in farms that are licensed as having good \\nfarming and human rights standards or recycled cotton from factories that are either Global Recycled \\nStandard (GRS) or Recycled Claim Standard (RCS) certified in 2025. \\nPUMA is taking steps to mitigate the biodiversity risks associated with the cotton sourcing. These include \\nthe adoption of BCI cotton, increased usage of recycled cotton, focusing on innovation to increase the share \\nof recycled cotton in our products, conducting Life Cycle Assessment of products and materials to evaluate \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n181 \\nenvironmental impact in different lifecycle stages and engaging with textile exchange to stay informed on \\nindustry best practices. \\nWe collect material consumption data on an annual basis along with the country of origin and require our \\nsuppliers to keep all the supportive documentation at disposal. We have also established an on-going due \\ndiligence programme with our partner laboratory in Germany where we regularly test samples of cotton \\nfinished garments before shipment. This further strengthens traceability and control across our supply \\nchain, from the raw material to the finished products. \\nThrough our partnership with Better Cotton, we support regenerative cotton farming practices. Better \\nCotton Soil Health principles require farmers to develop a Soil Management Plan. The plan should include \\npractices that contribute to maintaining and enhancing soil structure and soil fertility, and continuously \\nimproving nutrient cycling. \\nBetter Cotton Biodiversity principles require Better Cotton farmers to adopt a Biodiversity Management \\nPlan to conserve biodiversity on and around their farms. This Plan includes regenerative farming practices \\nsuch as ensuring crop rotation, which helps with soil regeneration. Biodiversity loss and climate change are \\ninterdependent and mutually reinforcing. Protecting forests, for example, could help reduce greenhouse gas \\nemissions. \\nThrough our partnership with Better Cotton, we also support cotton farmer producers for climate-friendly \\npractices, Better Cotton has set the goal of reducing greenhouse gas emissions by 50% per ton of Better \\nCotton lint produced by the end of the decade. \\nIn 2023, the share of BCI cotton was 90% and recycled cotton made up 8.6% of all cotton sourced by PUMA. \\nPolyester: We sourced 79% of our polyester from China in 2023, followed by Taiwan 9.2% and Vietnam \\n7.4%. We sourced both virgin polyester and recycled polyester from China, whereas we sourced only \\nrecycled polyester from Taiwan and Vietnam. China has a very high-risk rating in terms of the potential \\nimpact of virgin polyester. Recycled polyester is rated as medium risk irrespective of country of origin by the \\nTextile Exchange tool. \\nIn terms of risk related to dependency, China, Turkey, South Korea, Japan and Indonesia are rated as very \\nhigh-risk countries for virgin polyester whereas the USA and Germany are considered as high-risk \\ncountries. However, apart from China, we source a negligible volume (around 1%) from high, and very high-\\nrisk countries. \\nWe have required our suppliers to source only polyester-certified to Bluesign/ Oekotex, or recycled polyester \\nfrom factories that are either Global Recycled Standard (GRS) or Recycled Claim Standard (RCS) certified in \\n2025. PUMA has joined the Textile Exchange polyester challenge, since our 2025 goal of 75% recycled \\npolyester is aligned with this challenge. While most of our recycled polyester to date has been made \\nfrom PET bottles, PUMA launched the innovative RE:FIBRE programme, and can repurpose collected textile \\nwaste and other used materials to create new textiles. We engaged our core fabric manufacturing plants in \\nenergy efficiency programmes and are helping them to transition to 25% renewable energy processing in \\n2025. We monitor and report chemical discharges, and work to eliminate pollutant chemicals. \\nIn 2023, we sourced a bio-based, high-performance polyester fibre known as Sorona, which constitutes \\n0.11% of our total polyester consumption. Sorona contains over 20% bio-based carbon, which helps reduce \\nthe environmental impact without sacrificing quality and performance. Sorona is produced using a \\nfermentation process which utilizes corn sugar as the main ingredient. \\nLeather: The Fashion Pact Dashboard allows us to assess overall risk in terms of biodiversity loss and land \\nuse area. However, biodiversity risk specific to leather usage by a brand or company cannot be evaluated by \\nusing this dashboard. We plan to explore a more specific tool for leather in future. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n182 \\nIn 2023, we sourced 61% of our leather from the USA, followed by Argentina (27%), Australia (6%) and Brazil \\n(5%). The risk assessment indicates that the USA has a risk rating of very high for land use impact and high \\nrisk for biodiversity loss, while Argentina has a very high-risk rating for land use impact and a medium risk \\nrating for biodiversity loss. Australia has a medium-risk rating for both impact categories while Brazil has \\nvery high-risk rating for both impact areas. \\nPUMA is taking several steps to mitigate the biodiversity risks associated with leather sourcing. These \\ninclude sourcing leather from LWG-rated tanneries, setting goals for sourcing deforestation-free leather, \\nand focusing on innovation in the development of recycled and other bio-based alternatives. We engage with \\nFashion Pact, Textile Exchange and the Leather Working Group to remain updated about industry best \\npractices. \\nWe have committed to sourcing all the bovine leather used in our products from verified deforestation-free \\nsupply chains by 2030 or earlier launched by global non-profits Textile Exchange and the Leather Working \\nGroup. The initiative aims to create equitable, transparent, and deforestation-free leather supply chains. The \\ncross-sector initiative is aimed at galvanizing brands into action to end the deforestation and conversion of \\nnatural ecosystems linked to leather sourcing. In doing so, it looks to protect wildlife habitats and \\nbiodiversity, preserve carbon stocks to mitigate climate change, and protect human rights. \\nClose to 100% of the leather that PUMA currently sources comes from Leather Working Group-certified \\ntanneries. This means that the leather used in PUMA products comes from manufacturers who are working \\nto implement industry best practices of environmental management and traceability. PUMA currently \\nmonitors its LWG medal-rated tanneries’ upstream traceability performance. \\nHowever, around 76% of the leather used at PUMA is suede, a byproduct of the full-grain leather business. \\nThe challenge faced currently by PUMA and others in the industry is that most suede tanneries work with \\nagents and intermediaries alongside direct tanneries, to guarantee a stable supply which creates a \\nchallenge to have full traceability at the cattle ranch level. \\nOur innovation team has worked to address the technological limitations of a shoe designed for composting \\nand launched the RE:SUEDE experiment. In 2022, 500 participants were asked to wear their RE:SUEDEs for \\nsix months before returning them to PUMA for the next stage of the experiment. A total of 412 pairs of worn \\nRE:SUEDEs were returned to PUMA and sent to our industrial composting partner Valor Composting – a \\nfamily business that takes a different approach to waste. We discovered that it is possible to turn the \\nRE:SUEDE into Grade A compost under specific industrial conditions provided by Ortessa. RE:SUEDE is \\nmainly made up of zeolite-tanned suede leather, hemp fibres, biodegradable TPE and organic cotton. The \\nzeolite tanning process is an innovative approach to in tanning chemicals, which use mineral zeolite and is \\nfree from toxic substances such as chrome, heavy metal and aldehyde. We will continue to innovate with our \\npartners to determine the infrastructure and technologies needed to make the process viable for a \\ncommercial version of the RE:SUEDE, including a take-back scheme, in 2024. \\nSynthetic Rubber: We sourced, 74% of our synthetic rubber from China, followed by Vietnam 14% and South \\nKorea 4%. China and South Korea are high-risk countries, while the risk profile for synthetic rubber from \\nVietnam is not available on the EiQ platform. High risks are Greenhouse Gas emissions, water use and solid \\nwaste. \\nWe have not yet mapped the manufacturing plants supplying synthetic rubber to our outsole manufacturers. \\nAs part of our 10FOR25, we work on developing recycled materials as alternatives to rubber. In 2023, 5% of \\nsynthetic rubber was recycled. We engage our strategic outsole suppliers in Higg FEM (environmental \\nperformance tool measurement which includes energy use and greenhouse gas emissions, water use, \\nwastewater, emissions to air and waste management) and work with them to eliminate pollutant chemicals. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n183 \\nNatural Rubber: In 2023, we sourced 29% of natural rubber from Vietnam, followed by Brazil 25%, \\nPakistan 13%, and Thailand 5%. Vietnam is categorised as an extreme risk country, while risk profiles for \\nnatural rubber from Brazil, Pakistan and Thailand are not available on the EiQ platform. The main high risks \\nare water use and impact on ecosystem. In 2023, only 2% of the rubber used in our products was natural \\nrubber. We aim in future to only source FSC certified rubber. FSC certification include adopting standards to \\nmaintain, conserve, and/or restore the ecosystem and environmental values of managed forests and avoid, \\nrepair, or mitigate negative environmental impacts. \\n↗ G.35 PUMA CDP FOREST SCORE \\n \\nPUMA’s CDP Forestry score improved from C in 2021 to B- in 2022. Until the end of January, 2024, we \\nretained our B-score. PUMA’s rating is better than the average performance of the sector (textile and fabric \\ngoods) which has an average rating of C. The overall global average rating stands at C. For more \\ninformation, please visit the CDP website.  \\n↗ T.49 E-KPIS - PAPER\\n1-4 \\n \\n* \\nIncluding paper bags, office paper and cardboard consumption \\n** Including outer cardboard boxes \\n1 \\nPUMA figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in \\nArgentina. All other production is outsourced to independent supplier factories, some warehouse operations are outsourced \\nto independent logistics providers. Franchised stores are excluded. \\n2 \\nPUMA production figures include core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories) and core Tier \\n2 supplier factories, Leather, PU and Textiles (40 factories). \\n3 \\nData includes extrapolations or estimates where no real data could be provided. \\n4 \\nMethodological changes over the last three years have influenced results. \\nC\\n2020\\nC\\n2021\\nB-\\n2022\\nPaper (tons) \\n2023 \\n2022 \\n2021 \\n2020 \\n2019 \\n2017 \\n% Change \\n2023/2022 \\n% Change \\n2023/2017 \\nPaper and cardboard \\nconsumption PUMA* \\n5,374 \\n5,021 \\n4,152 \\n2,638 \\n2,281 \\n2,756 \\n7% \\n95% \\nCertified or recycled paper and \\ncardboard consumption PUMA \\n4,911 \\n4,393 \\n3,306 \\n1,848 \\n1,818 \\n2,025 \\n12% \\n143% \\nPercentage of certified or \\nrecycled paper consumption \\n91% \\n87% \\n80% \\n70% \\n80% \\n74% \\n \\n \\nPaper and cardboard \\nconsumption from PUMA \\nproduction (shoe boxes, \\nhangtags) \\n25,602** 30,656** 19,670** \\n18,538 \\n14,863 \\n14,129 \\n-16.5% \\n81.2% \\nPercentage of certified or \\nrecycled paper and cardboard \\nconsumption from PUMA \\nproduction \\n99%** \\n99%** \\n88%** \\n99% \\n100% \\nn/a \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n184 \\nENVIRONMENTAL KEY PERFORMANCE DATA \\nГ \\nThe PUMA Environmental Profit and Loss Account, or EP&L, calculates the environmental impact of \\nPUMA's activities in financial terms across six categories from raw material production to the PUMA store. \\nWhile the EP&L is not a precise measurement tool, it helps to show the categories and stages of the value \\nchain in which the impact is greatest and therefore gives a good indication of where we should focus our \\nefforts. \\nThe EP&L methodology, was developed in 2011 by PWC and Truecost, and later refined by Kering with the \\nhelp of PWC. It mainly relies on material input and spending data. \\nOver the last years, we have added primary data for our Tier 1 and Tier 2 suppliers and developed specific \\nEP&L emission factors for major materials used, such as Better Cotton. \\nHowever, we are still in the process of fully aligning our EP&L methodology for Tiers 3 and 4 with internal \\nand external standards. As a result, the table below differs from our Scope 3 emission calculation in the \\nClimate section and also results in a high water value for Tier 3 due to some wet processing for leather and \\npolyester being attributed to Tier 3. \\nWe will continue to work on the alignment of methodologies to strengthen the EP&L as a valuable risk \\nassessment and information tool. \\n↗ G.36 EP&L RESULTS 2023 \\n \\n \\nAir pollution\\nGHG emission\\nLand use\\nWaste\\nWater use\\nWater pollution\\nTier 0\\nOwn\\noperations\\nTier 1\\nProduct\\nmanufacturing\\nTier 2\\nComponent\\nmanufacturing\\nTier 3\\nRaw material\\nprocessing\\nTier 4\\nRaw material\\nproduction\\n2%\\n9%\\n14%\\n28%\\n48%\\nTotal\\nEP&L Value 2023: € 415 million\\n10%\\n33%\\n21%\\n4%\\n11%\\n22%\\n100%\\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n185 \\n↗ G.37 EP&L TREND 2020 – 2023 \\n \\nFrom our EP&L results, we can conclude that the production (48%) and processing of raw materials (28%) is \\nresponsible for the vast majority of the environmental impact from a process point of view, while \\ngreenhouse gas emissions (33%), water pollution (22%) and land use (21%) are responsible for over half of \\nall environmental impact measured by the EP&L in terms of impact categories. \\nThis confirms our strategy of transitioning to the use of low-impact materials at scale, while focusing on the \\nreduction of greenhouse gas emissions across our supply chain. \\nThe EP&L trend over the last years shows that the EP&L value is growing slower than sales. This means \\nthat while the overall impact was growing, we were able to reduce the EP&L value relative to sales. In 2023, \\nwe achieved an absolute reduction. \\n└ \\n \\nPRODUCT/MATERIAL-RELATED E-KPIS \\nWe have been measuring the average environmental key performance indicators (E-KPIs) from Textile and \\nLeather manufacturing (Tier 2) and Apparel and Footwear manufacturing (Tier 1) since 2017. \\nIn 2023, the Greenhouse Gas emissions KPIs reduced across the product divisions, both Tier 1 and Tier 2, \\nexcept for the footwear division, where it almost remained stable (increase by 0.2%) as compared to 2020. \\nCO2 emissions per piece of garment reduced by 23.2%; per square metre of leather produced, CO2 emissions \\nhave reduced by 40.7% and per ton of textile produced, CO2 emissions reduced by 9.2%. This was mainly \\nachieved due to various climate actions initiated as described in the report. The participation of core \\nsuppliers in cleaner production and renewable energy programmes, installation of rooftop solar projects, \\nswitching from coal to biomass, and the purchase of RECs are the main contributor for these reductions \\nachieved in Greenhouse Gas emissions. \\nIn 2023, water consumption per pair/square metre reduced for footwear by 21.5% and 4.9% for textile as \\ncompared to the baseline of 2020 mainly due to the implementation of water efficiency measures including \\nwater recycling plants by a few textile mills towards the end of 2022. \\nHowever, the water KPI increased for apparel by 9.4%, and for leather by 11.7%. For apparel, production \\nreduced by 15% as compared to 2020 (which is 33% reduction from 2022). Most of the apparel factories use \\nwater for domestic purposes and hence water consumption depends on the number of workers. In 2023, the \\nmarket environment and increased inventory levels resulted in a need for more cautious procurement from \\n441\\n530\\n549\\n415\\n0\\n1,000\\n2,000\\n3,000\\n4,000\\n5,000\\n6,000\\n7,000\\n8,000\\n9,000\\n10,000\\n0\\n100\\n200\\n300\\n400\\n500\\n600\\n700\\n800\\n2020\\n2021\\n2022\\n2023\\nEP&L Value\\nRevenue\\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n186 \\nour suppliers, so the number of workers in core apparel factories decreased by 9% and production fell by \\n15% resulting in higher water consumption per piece of apparel as compared to 2020. \\nOut of five leather factories, two were new core factories and have not participated in resource efficiency \\nprogrammes. One of the tanneries in China has relatively high water consumption as they process raw hide \\nin-house, whereas other leather tanneries process wet blue leather (tanned leather, but not dried, dyed nor \\nfinished). Also, one tannery in Vietnam started tracking and reporting rainwater usage in 2023. \\nIn 2023, production waste to landfills decreased by 87.4% for apparel and by 64.7% for the footwear division \\nas compared to the 2020 baseline. This is mainly due to the adoption of better waste disposal practices by \\nour suppliers and being able to achieve diversion from landfill. We also observed that factories were able to \\ntrack and report waste data more accurately. \\n↗ T.50 FOOTWEAR E-KPI RESULTS (TIER 1) \\nValue \\n2023 \\n2022 \\n2021 \\n2020 \\n2019 \\n2018 \\n2017 \\nChange \\n2020-2023 \\nNumber of \\nsuppliers \\nEnergy/pair (kWh) \\n1.63 \\n1.36 \\n1.41 \\n1.31 \\n1.30 \\n1.25 \\n1.40 \\n24.8% \\n21 \\nCO2/pair (kg) \\n0.75 \\n0.7 \\n0.68 \\n0.74 \\n0.96 \\n0.93 \\n1.00 \\n0.2% \\nWater/pair (L) \\n11.8 \\n9.6 \\n11.9 \\n15.1 \\n15.2 \\n12.3 \\n14.5 \\n-21.5% \\nWaste/pair (g) \\n122 \\n134 \\n141 \\n145 \\n127 \\n109 \\n116 \\n-15.6% \\nWaste to \\nlandfills/pair (g) \\n8.36 \\n12.3 \\n19.0 \\n23.7 \\n- \\n- \\n- \\n-64.7% \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n↗ T.51 APPAREL E-KPI RESULTS (TIER 1) \\nValue \\n2023 \\n2022 \\n2021 \\n2020 \\n2019 \\n2018 \\n2017 \\nChange \\n2020-2023 \\nNumber of \\nfactories \\nEnergy/piece \\n(kWh) \\n0.58 \\n0.52 \\n0.55 \\n0.56 \\n0.57 \\n0.57 \\n0.72 \\n4.5% \\n19 \\nCO2/piece (kg) \\n0.17 \\n0.19 \\n0.20 \\n0.22 \\n0.24 \\n0.26 \\n0.31 \\n-23.2% \\nWater/piece (l) \\n5.03 \\n3.83 \\n4.23 \\n4.60 \\n4.39 \\n4.20 \\n7.58 \\n9.4% \\nWaste/piece (g) \\n60.7 \\n58.2 \\n62.3 \\n54.3 \\n56.3 \\n46.5 \\n44.0 \\n11.8% \\nWaste to \\nlandfills/piece (g) \\n0.33 \\n2.66 \\n2.40 \\n2.64 \\n- \\n- \\n- \\n-87.4% \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n↗ T.52 LEATHER E-KPI RESULTS (TIER 2) \\nValue \\n2023 \\n2022 \\n2021 \\n2020 \\n2019 \\n2018 \\n2017 \\nChange \\n2020-2023 \\nNumber of \\nfactories \\nEnergy/SqM (kWh) \\n7.37 \\n7.55 \\n6.46 \\n7.05 \\n8.19 \\n8.65 \\n9.10 \\n4.5% \\n5 \\nCO2/SqM (kg) \\n1.61 \\n2.34 \\n1.89 \\n2.72 \\n3.21 \\n3.16 \\n3.39 \\n-40.7% \\nWater/SqM (L) \\n76.4 \\n56.9 \\n60.9 \\n68.3 \\n74.7 \\n90.20 \\n91.80 \\n11.7% \\nWaste/SqM (kg) \\n0.67 \\n0.60 \\n0.50 \\n0.68 \\n0.78 \\n0.85 \\n1.56 \\n-1.4% \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n187 \\n \\n↗ T.53 TEXTILES E-KPI RESULTS (TIER 2) \\nValue \\n2023 \\n2022 \\n2021 \\n2020 \\n2019 \\n2018 \\n2017 \\nChange \\n2020-2023 \\nNumber of \\nfactories \\nEnergy/ton (kWh) \\n14,320 \\n13,122 \\n13,394 \\n13,049 \\n12,636 \\n13,387 \\n13,679 \\n9.7% \\n32 \\nCO2/ton (T) \\n4.06 \\n4.54 \\n4.58 \\n4.47 \\n4.37 \\n4.45 \\n4.45 \\n-9.2% \\nWater/ton (m3) \\n98.3 \\n98.5 \\n98.7 \\n103 \\n106 \\n123 \\n119 \\n-4.9% \\nWaste/ton (kg) \\n276 \\n289 \\n121 \\n78.9 \\n62.1 \\n70.6 \\n300 \\n250.0% \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nFor tables on E-KPI results, the values for November and December 2023 were estimated by employing the Exponential \\nSmoothing (ETS) algorithm in Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after \\ncomparing it to alternative methods, considering its performance against actual historical data, specifically in terms of deviation \\nfrom the actual values in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to \\nother methods, such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per \\nproduction unit) from the 12 months of data spanning from November 2021 to October 2022. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n188 \\nREPORTING IN ACCORDANCE WITH THE EU \\nTAXONOMY REGULATION \\nTAXONOMY OBJECTIVES \\nThe Taxonomy Regulation (EU) 2020/852 (in the following “the Taxonomy”) entered into force on 22 June 2020. \\nThe purpose of this regulation is to provide a definition of what constitutes a sustainable economic activity \\nand to redirect capital flows into companies that are aligning their business models towards such sustainable \\neconomic activities. To achieve this goal, companies must report on the proportion of “environmentally \\nsustainable” revenues, investments (capital expenditure) and operating expenses. \\nThe focus of the Taxonomy lies on 6 environmental objectives: \\n• Climate change mitigation \\n• Climate change adaptation \\n• Sustainability and protection of water and marine resources \\n• Pollution prevention and control \\n• Protection and restoration of biodiversity and ecosystems \\n• Transition to a circular economy \\nThe Taxonomy has identified eligible economic activities that substantially contribute to each of these \\nenvironmental objectives. Linked to these eligible activities are technical screening criteria as well as do no \\nsignificant harm criteria and minimum safeguards that define whether the activity is considered sustainable \\nor not (aligned). \\nDelegated Regulation (EU) 2021/2178 as of July 6, 2021 on the climate objectives (climate change mitigation \\n(Annex I) and climate change adaptation (Annex II)) (“the Climate Delegated Act”), was published in the \\nOfficial Journal on December 9, 2021 and entered into force on January 1, 2022 ((EU) 2021/2139). Further \\ndelegated acts for the remaining objectives were published in 2023, namely EU 2022/1214 (Complementary \\nClimate DA), EU 2023/2485 (amending EU 2021/2139), EU 2023/2486 (targets three to six), C(2023)3850 \\n(Amended Climate DA) and C(2023)3851 Environmental DA (targets three to six). \\n \\nDISCLOSURE REQUIREMENTS FOR NON-FINANCIAL UNDERTAKINGS \\nAccording to Article 2 of the Climate Delegated Act and Article 8 of the Taxonomy any undertaking subject to \\nthe Non-Financial Reporting Directive (NFRD) must provide information on “environmentally sustainable” \\nrevenues, investments (capital expenditure) and operating expenses (OpEx). \\nAccording to Article 10 of the Climate Delegated Act undertakings must disclose the proportion of \\nTaxonomy-eligible and Taxonomy non-eligible economic activities in their total turnover, capital expenditure \\nand operational expenditure. The eligibility of an activity implies that an activity is included in the Climate \\nDelegated Act. Whether an activity is Taxonomy-eligible or not says nothing about the sustainability of that \\nactivity. Being Taxonomy-eligible is merely an indication that a certain activity makes a substantial \\ncontribution to one of the six environmental objectives of the Taxonomy. From January 1, 2023, the \\ndisclosure must also include information on taxonomy alignment, meaning only activities that are included \\nin the “environmentally sustainable share” of the three performance indicators. An economic activity is \\nenvironmentally sustainable if it: \\n• makes a significant contribution to the achievement of one or more environmental goals (significant \\ncontribution, SC) \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n189 \\n• does not result in significant harm to one of more of the environmental objectives (do no significant \\nharm, DNSH) \\n• is carried out in compliance with a defined minimum level of protection (minimum safeguards, MS) and \\ncomplies with technical screening criteria (TSC) of Annex I and Annex II. \\n \\nTAXONOMY-ELIGIBILITY OF PUMA’S ECONOMIC ACTIVITIES IN RESPECT TO THE \\nENVIRONMENTAL OBJECTIVES OF THE EU TAXONOMY \\nThe technical screening criteria in Annex I and Annex II of Delegated Regulation (EU) 2021/2139 of June 4, \\n2021 for the first two environmental objectives, namely climate change mitigation and climate change \\nadaptation, do not list any business activities that are linked to the production and sale of footwear, apparel \\nand accessories. This means that PUMA’s business activities so far do not qualify as contributing \\nsubstantially to climate change mitigation or climate change adaptation. \\nFurther technical screening criteria were published as Annexes I, III and IV of Delegated Regulation (EU) \\n2023/2486 (supplementing EU 2020/852) of June 27, 2023, for the remaining environmental objectives, \\nnamely sustainable use and protection of water and marine resources, pollution prevention and control as \\nwell as restoration of biodiversity and ecosystems. Likewise, these do not list any business activities that are \\nlinked to the production and sale of footwear, apparel and accessories. \\nFor the remaining environmental objective published as Annex II, the transition to a circular economy, \\nactivities related to apparel are listed, but are limited to sales generated by services such as repair, \\nremanufacturing or refurbishment, preparation for reuse, sale of second-hand goods, or product as a \\nservice business models, none of which are not part of PUMA current revenue generating activities. \\nAs mentioned in the Circularity section of this report, PUMA and its partners are piloting fibre to fibre \\nrecycling technology and take-back systems. However, those activities have not generated any significant \\nTaxonomy-eligible or aligned sales under the definition of Annex II and had a project status in 2023. \\nTherefore, PUMA’s business activities in this regard are not considered Taxonomy-eligible (so far). Since \\nPUMA does not have any economic activities related to nuclear power or power generation from gas, PUMA \\nwill not report the related standard forms from the Delegated Act (EU 2022/1214). \\n \\nELIGIBLE CAPITAL EXPENDITURE \\nPUMA understands that the Taxonomy and the Climate Delegated Act as well as the Environmental \\nDelegated Act including its Annexes nonetheless requires non-financial undertakings with non-Taxonomy \\neligible economic activities to report on the part of the capital expenditure related to the purchase of output \\nfrom Taxonomy-aligned economic activities and individual measures enabling target activities to become \\nlow-carbon or to lead to greenhouse gas reductions. \\nIn this regard PUMA reviewed so-called cross-cutting activities that are not directly related to PUMA’s \\nprimary business activity and are not revenue-generating for PUMA but still are of relevance to support \\nPUMA’s sustainability efforts. Taxonomy-eligible capital expenditure could be identified with regard to \\n“Transport” and “Real Estate Activities”. \\nThe key figures are determined based on Delegated Regulations (EU) 2020/852, 2021/2139 and 2021/2178 as \\nwell as 2023/2385 and 2023/2086 in conjunction with the accounting policies to be applied to the \\nconsolidated financial statements. To avoid double counting, expenditure has been allocated to only one \\neconomic activity. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n190 \\nIn 2023 PUMA made investments in several buildings, including: \\n• A new solar PV station in Germany (planned completion in 2024) \\n• New charging stations in Germany \\n• Office space in Argentina \\nThe technical screening criteria of Annexes I and II define a taxonomy-aligned investment in buildings only \\nfor those buildings that are ranked among the top 15% of their regional building stock in terms of Primary \\nEnergy Demand (PED). \\nSince there is no precise definition of this 15%, for example in terms of area covered or primary energy \\ndemand per m\\n2, and as the rental of buildings is not material to PUMA’s business performance in terms of \\nCO2 emissions, we have decided to report the Taxonomy-aligned investment in buildings for 2023 as zero. \\nThis does not mean that PUMA is not investing in lowering CO2 emissions from its own entities. As described \\nin the Climate section of this report, our Scope 1 and 2 emissions have been reduced by 85% compared to \\nour baseline in 2017, mainly through green electricity tariffs or renewable energy attribute certificates. \\nIn 2023 PUMA also invested in charging stations for electric cars, which do fall under the taxonomy \\nalignment criteria for climate mitigation. The total investment in these charging stations was 241 TEUR \\n(2022: 79 TEUR). \\nFurthermore, PUMA started to invest in additional solar PV capacity at its headquarters in Germany. The \\ninvestment in 2023 came to 262 TEUR (no investment in 2022). \\nAs part of PUMA’s 10FOR25 sustainability targets, PUMA is transitioning its car fleet to more sustainable \\ntransport vehicles. Therefore, in 2023 PUMA invested in the lease of 92 low or zero emission vehicles (2022: \\n64 vehicles). \\nUnlike buildings, the technical screening criteria for CO2 emissions for taxonomy alignments are clearly \\ndefined as below 50 g CO2/km. \\nWe can confirm that 92 cars added to our car fleet are Taxonomy-aligned with the technical screening \\ncriteria based on their CO2 emission footprint, equalling an investment of over 2,000 TEUR (2022: 1,521 TEUR) \\nConsidering the do-no-significant harm criteria of tires for passenger cars, not all those cars can be \\nconsidered as fully Taxonomy-aligned, as many of the standard tires used for our new electric cars from \\nTesla, Volkswagen, Hyundai, Mercedes and BMW do not fulfil the criteria for noise emissions. As a result \\nthe reported Taxonomy-aligned investment in vehicles for the year 2023 is 408 TEUR (2022: 372 TEUR). \\nThe total capital expenditure (IAS 16, 38 and IFRS 16) of the PUMA Group amounts to 599,874 TEUR for the \\nyear 2023 (2022: 669,382 TEUR). The eligible capital expenditure related to “Transport” amounts to 7,930 \\nTEUR (2022: 5,427 TEUR) and the amount related to“Real Estate Activities /Other” is 336,500 TEUR \\n(2022:376,996 TEUR). The Taxonomy-aligned capital expenditure from investment in solar PV, low or zero \\nemission cars and charging stations for electric cars was 910 TEUR (2022: 372 TEUR). \\n \\nELIGIBLE OPERATIONAL EXPENDITURE \\nPUMA understands that the Taxonomy and the Disclosure Delegated Regulation (EU 21/2178) nonetheless \\nasks non-financial undertakings with non- Taxonomy eligible activities to report on the part of the \\noperational expenditure related to the purchase of output from Taxonomy-aligned economic activities and \\nindividual measures enabling the target activities to become low-carbon or to lead to greenhouse gas \\nreductions. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n191 \\nDue to the nature of our business model, which is the design, development, marketing and sale of footwear, \\napparel and accessories, the eligible operational expenditure is not material in the context of the \\nenvironmental objectives of the Taxonomy, therefore the numerator of our taxonomy-eligible operational \\nexpenditure is zero. \\nFor the denominator, Article 2, Section 1.1.3.1. of Annex 1 the Climate Delegated Act asks for reporting on the \\ntotal operational expenditure derived from the categories “research and development, building renovation \\nmeasures, short-term lease, maintenance and repair and any other direct expenditures related to the day-\\nto-day servicing of assets of property, plant and equipment by the undertaking or third party to whom \\nactivities are outsourced that are necessary to ensure the continued and effective functioning of such \\nasset.” The total operational expenditure from these categories amounts to 113.4 TEUR (2022: 103.6 TEUR) \\nfor the 2023 financial year. \\n \\nOUTLOOK \\nAt PUMA, we will continue the transition of our car fleet to low or zero emission vehicles in those countries \\nwhere the charging infrastructure can support running an electric car fleet. We also plan to continue \\ninvesting in te renewable energy capacity of the buildings we own. In addition, we will explore the activities \\nlisted under “Transition to a circular economy” to assess their technical and financial viability over the next \\nyears. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n192 \\nProportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023 \\n \\n \\n \\n \\nSubstantial contribution criteria \\nDNSH criteria \\n('Does Not Significantly Harm') \\n \\n \\n \\n \\nEconomic Activities \\nCode \\nTurnover \\nProportion of turnover \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nMinimum Safeguards \\nProportion of Taxnomy-\\naligned (A.1) or eligible (A.2) \\nturnover, year 2022 \\nCategory enabling activity \\nCategory transitional activity \\n \\n \\nCurrency (€) \\n% \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\n% \\nE \\nT \\nA. TAXONOMY-ELIGIBLE ACTIVITIES \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nA.1 Environmentally sustainable activities \\n(Taxonomy-aligned) \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nTaxonomy-aligned environmentally sustainable \\nactivities performed by PUMA \\n \\n0 \\n0 \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nN/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nTurnover of environmentally sustainable activities \\n(Taxonomy-aligned) (A.1) \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nOf which enabling \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nOf which transitional \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nA.2 Taxonomy-eligible but not environmentally \\nsustainable activities (not Taxonomy-aligned \\nactivities) \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nTaxonomy-eligible environmentally sustainable \\nactivities performed by PUMA \\n \\n0 \\n0 \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nN/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nTurnover of Taxonomy-eligible but not environmentally \\nsustainable activities \\n(not Taxonomy-aligned activities) (A.2) \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n193 \\n \\n \\n \\n \\nSubstantial contribution criteria \\nDNSH criteria \\n('Does Not Significantly Harm') \\n \\n \\n \\n \\nEconomic Activities \\nCode \\nTurnover \\nProportion of turnover \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nMinimum Safeguards \\nProportion of Taxnomy-\\naligned (A.1) or eligible (A.2) \\nturnover, year 2022 \\nCategory enabling activity \\nCategory transitional activity \\n \\n \\nCurrency (€) \\n% \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\n% \\nE \\nT \\nA. Turnover of Taxonomy eligible activities (A.1+A.2) \\n \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nB. TAXONOMY-NON-ELIGIBLE ACTIVITIES \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nTurnover of Taxonomy-non-eligible activities \\n \\n8,601,699,000 100 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nTOTAL \\n \\n8,601,699,000 100 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n194 \\nProportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023 \\n \\n \\n \\n \\nSubstantial contribution criteria \\nDNSH criteria \\n('Does Not Significantly Harm') \\n \\n \\n \\n \\nEconomic Activities \\nCode \\nCapEx \\nProportion of CapEx, 2023 \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nMinimum safeguard \\nProportion of Taxonomy \\naligned (A.1) or eligible (A.2) \\nCapEx, 2022 \\nCategory enabling activity \\nCategory transitional activity \\n \\n \\nCurrency (€) \\n% \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\n% \\nE \\nT \\nA. TAXONOMY-ELIGIBLE ACTIVITIES \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nA.1 Environmentally sustainable activities \\n(Taxonomy-aligned) \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nActivity 1: Installation, maintenance and repair of \\ncharging stations for electric vehicles in buildings \\n(and parking spaces attached to buildings) (7.4) \\nF42, \\nF43, \\nM71 \\n240,000 \\n0.04 \\nY \\nY \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nY n.a. n.a. n.a. n.a. n.a. \\nY \\n0.01 \\nE \\n \\nActivity 2: Installation, maintenance and repair of \\nrenewable energy technologies (7.6) \\nF42, \\nF43, \\nM71 \\n262,000 \\n0.05 \\nY \\nY \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nY n.a. n.a. \\nY \\nY n.a. \\nY \\n0 \\nE \\n \\nActivity 3: Transport by motorbikes, passenger \\ncars and light commercial vehicles (6.5) \\nN77.11 \\n408,000 \\n0.07 \\nY \\nY \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nY \\nY n.a. \\nY \\nY n.a. \\nY \\n0.04 \\nE \\n \\nCapEx of environmentally sustainable activities (Taxonomy-\\naligned) (A.1) \\n910,000 \\n0.16 \\n0.16 \\n0.16 \\n0 \\n0 \\n0 \\n0 \\nY \\nY n.a. \\nY \\nY n.a. \\nY \\n0.05 \\n \\n \\nOf which enabling \\n \\n910,000 \\n0.16 \\n0.16 \\n0.16 \\n0 \\n0 \\n0 \\n0 \\nY \\nY n.a. \\nY \\nY n.a. \\nY \\n \\nE \\n \\nOf which transitional \\n \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n \\n \\nT \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n195 \\n \\n \\n \\n \\nSubstantial contribution criteria \\nDNSH criteria \\n('Does Not Significantly Harm') \\n \\n \\n \\n \\nEconomic Activities \\nCode \\nCapEx \\nProportion of CapEx, 2023 \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nMinimum safeguard \\nProportion of Taxonomy \\naligned (A.1) or eligible (A.2) \\nCapEx, 2022 \\nCategory enabling activity \\nCategory transitional activity \\n \\n \\nCurrency (€) \\n% \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\n% \\nE \\nT \\nA.2 Taxonomy-eligible but not environmentally \\nsustainable activities (not Taxonomy-aligned \\nactivities) \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nActivity 1: Acquisition and ownership of buildings \\n(7.7) \\nL68 \\n335,998,000 60.01 \\nEL \\nEL \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\n \\n \\n \\n \\n \\n \\n \\n56.31 \\n \\n \\nActivity 2: Transport by motorbikes, passenger \\ncars and light commercial vehicles (6.5) \\nN77.11 \\n7,522,000 \\n1.34 \\nEL \\nEL \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\n \\n \\n \\n \\n \\n \\n \\n0.77 \\n \\n \\nCapEx of Taxonomy-eligible but not environmentally \\nsustainable activities (not Taxonomy-aligned activities) (A.2) \\n343,520,000 61.36 61.36 61.36 \\n0 \\n0 \\n0 \\n0 \\n \\n \\n \\n \\n \\n \\n57.09 \\n \\n \\nA. CapEx of Taxonomy eligible activities (A.1+A.2) \\n344,430,000 61.52 61.52 61.52 \\n0 \\n0 \\n0 \\n0 \\n \\n \\n \\n \\n \\n \\n \\n57.13 \\n \\n \\nB. TAXONOMY-NON-ELIGIBLE ACTIVITIES \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nCapEx of Taxonomy-non-eligible activities \\n \\n215,444,000 38.48 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n42.87 \\n \\n \\nTOTAL \\n \\n559,874,000 \\n100 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n196 \\nProportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023 \\n \\n \\n \\n \\nSubstantial contribution criteria \\nDNSH criteria \\n('Does Not Significantly Harm') \\n \\n \\n \\n \\nEconomic Activities \\nCode \\nOpEx \\nProportion of OpEx, 2023 \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nMinimum safeguard \\nProportion of Taxonomy \\naligned (A.1) or eligible (A.2) \\nOpEx, 2022 \\nCategory enabling activity \\nCategory transitional activity \\n \\n \\nCurrency (€) \\n% \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\n% \\nE \\nT \\nA. TAXONOMY-ELIGIBLE ACTIVITIES \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nA.1 Environmentally sustainable activities (Taxonomy-\\naligned) \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nTaxonomy-aligned environmentally sustainable \\nactivities performed by PUMA \\n \\n0 \\n0 \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nN/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nOpEx of environmentally sustainable activities (Taxonomy-\\naligned) (A.1) \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nOf which enabling \\n \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nOf which transitional \\n \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. \\n0 \\n \\n \\nA.2 Taxonomy-eligible but not environmentally \\nsustainable activities (not Taxonomy-aligned activities) \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nTaxonomy-eligible environmentally sustainable \\nactivities performed by PUMA \\n \\n0 \\n0 \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\nN/EL \\n \\n \\n \\n \\n \\n \\n \\n0 \\n \\n \\nOpEx of Taxonomy-eligible but not environmentally \\nsustainable activities (not Taxonomy-aligned activities) (A.2) \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n \\n \\n \\n \\n \\n \\n \\n0 \\n \\n \\nA. OpEx of Taxonomy eligible activities (A.1+A.2) \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n0 \\n \\n \\n \\n \\n \\n \\n \\n0 \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n197 \\n \\n \\n \\n \\nSubstantial contribution criteria \\nDNSH criteria \\n('Does Not Significantly Harm') \\n \\n \\n \\n \\nEconomic Activities \\nCode \\nOpEx \\nProportion of OpEx, 2023 \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nClimate change mitigation \\nClimate change adaptation \\nWater \\nPollution \\nCircular Economy \\nBiodiversity \\nMinimum safeguard \\nProportion of Taxonomy \\naligned (A.1) or eligible (A.2) \\nOpEx, 2022 \\nCategory enabling activity \\nCategory transitional activity \\n \\n \\nCurrency (€) \\n% \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY;N; \\nN/EL \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\nY/N \\n% \\nE \\nT \\nB. TAXONOMY-NON-ELIGIBLE ACTIVITIES \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nOpEx of Taxonomy-non-eligible activities \\n113,400,000 100 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nTOTAL \\n113,400,000 100 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n198 \\nINDEX FOR COMBINED NON-FINANCIAL REPORT \\nAND GRI CONTENT \\nThis report constitutes a separate combined non-financial report in accordance with Sections 289b to 289e \\nand 315b, 315c in conjunction with Sections 289c to 289e of the German Commercial Code (HGB). This \\nconsolidated combined non-financial report consists of the \\\"Sustainability\\\" and \\\"Culture\\\" subsections in the \\n\\\"Our People\\\"section as well as “Compliance Management System” and “Corporate Social Responsibility” in \\nthe chapter “Corporate Governance Statement in accordance with Section 289f and Section 315d HGB”. The \\nreporting period covered is from January 1, 2023 to December 31, 2023. No restatements of information have \\nbeen made in this report. We have provided separate reports for PUMA SE and the PUMA Group within the \\n“Our People” section only. Separate reporting of other sustainability data would not add any meaningful new \\ninformation or value and would require significant additional resources, so we have omitted it here. \\nInformation about PUMA’s business model is set out in the Financial section of this Annual Report. We have \\nnot identified any most significant non-financial performance indicators according to Article § 289c, section \\n3, number 5 of the German Commercial Code (HGB). PUMA engaged KPMG AG Wirtschaftsprüfungs-\\ngesellschaft to perform a “limited assurance” audit of the combined sustainability report with a focus on \\naccordance with the German CSR Implementation Act (CSR-RUG). \\nSince 2003 PUMA’s sustainability reports are based on the guidelines of the Global Reporting Initiative (GRI), \\nwhich developed detailed and widely recognised standards on sustainability reporting. PUMA SE has \\nprepared this report with reference to the GRI Standards GRI 1: Foundation 2021. This option enables us to \\nreport on the impacts related to our economic, environmental, social and governance performance. It \\nincludes topics that are material to PUMA’s business and our key stakeholders, and that constitute our \\nsustainability targets. These targets have been systematically developed in accordance with the feedback \\nfrom PUMA’s stakeholders. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n199 \\nGENERAL DISCLOSURES \\n \\n \\nLocation \\nPages \\nGRI 2: General \\nDisclosures 2021 \\n2-1 Organisational details \\nCommercial activities and organisational \\nstructure \\n214 \\n \\n2-2 Entities included in the \\norganisation’s sustainability reporting \\nScope of the Report \\n48 \\n \\n2-3 Reporting period, frequency and \\ncontact point \\nIndex for combined non-financial report \\nand GRI content, Imprint \\n198 \\n \\n2-4 Restatements of information \\nIndex for combined non-financial report \\nand GRI content \\n198 \\n \\n2-5 External assurance \\nLimited assurance report of the \\nindependent practitioner regarding the \\nseparate non-financial group report \\n205 \\n \\n2-6 Activities, value chain and other \\nbusiness relationships \\nCommercial activities and organisational \\nstructure; Sourcing \\n214, 220 \\n \\n2-7 Employees \\nOur People; Employees \\n16, 222 \\n \\n2-9 Governance structure and \\ncomposition \\nDescription of the working practices of \\nthe management board and the \\nsupervisory board \\n254 \\n \\n2-10 Nomination and selection of the \\nhighest governance body \\nDescription of the working practices of \\nthe management board and the \\nsupervisory board \\n254 \\n \\n2-11 Chair of the highest governance \\nbody \\nDescription of the working practices of \\nthe management board and the \\nsupervisory board \\n254 \\n \\n2-12 Role of the highest governance \\nbody in overseeing the management of \\nimpacts \\nSustainability organisation and \\ngovernance structure; Description of the \\nworking practices of the management \\nboard and the supervisory board \\n36, 254 \\n \\n2-13 Delegation of responsibility for \\nmanaging impacts \\nSustainability organisation and \\ngovernance structure \\n36 \\n \\n2-14 Role of the highest governance \\nbody in sustainability reporting \\nSustainability committee \\n8 \\n \\n2-15 Conflicts of interest \\nDiversity concept for the supervisory \\nboard \\n254 \\n \\n2-16 Communication of critical concerns Risk and opportunity report \\n255 \\n \\n2-17 Collective knowledge of the highest \\ngovernance body \\nCompensation System \\nhttps://about.puma.com/en/investor-\\nrelations/corporate-governance \\n \\n \\n2-19 Remuneration policies \\nDescription of the working practices of \\nthe management board and the \\nsupervisory board \\n254 \\n \\n2-20 Process to determine remuneration Description of the working practices of \\nthe management board and the \\nsupervisory board. \\nCompensation System \\nhttps://about.puma.com/en/investor-\\nrelations/corporate-governance \\n254 \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n200 \\n \\n \\nLocation \\nPages \\nGRI 2: General \\nDisclosures 2021 \\n2-21 Annual total compensation ratio \\nDescription of the working practices \\nof the management board and the \\nsupervisory board. \\nCompensation Report \\nhttps://about.puma.com/en/investor-\\nrelations/corporate-governance \\n254 \\n \\n2-22 Statement on sustainable \\ndevelopment strategy \\nCEO Letter; Foreword \\n5, 31 \\n \\n2-23 Policy commitments \\nhttps://about.puma.com/en/sustaina\\nbility/codes-policies-and-handbooks \\n \\n \\n2-24 Embedding policy commitments \\nPUMA's FOREVER. BETTER. \\nSustainability Strategy; Human Rights \\n35, 53 \\n \\n2-25 Processes to remediate negative \\nimpacts \\nHuman Rights \\n67-78 \\n \\n2-26 Mechanisms for seeking advice \\nand raising concerns \\nCompliance management system \\n254 \\n \\n2-28 Membership associations \\nStakeholder outreach \\n38-41 \\n \\n2-29 Approach to stakeholder \\nengagement \\nStakeholder outreach \\n38-41 \\n \\n2-30 Collective bargaining \\nagreements \\nHuman Rights at own entities \\n53 \\n \\n \\n \\n \\n \\n \\nMATERIAL TOPICS \\n \\n \\nLocation \\nPages \\n \\n3-1 Process to determine material \\ntopics \\nMost material aspects \\n42-44 \\nGRI 3: Material \\nTopics 2021 \\n3-2 List of material topics \\nMost material aspects \\n42-44 \\n \\n \\n \\n \\n \\n \\nANTI-CORRUPTION \\n \\n \\nLocation \\nPages \\n \\n3-3 Management of material topics \\nRelevant disclosures of corporate \\ngovernance practices that are applied \\nbeyond the regulatory requirements \\n263 \\nGRI 3: Material \\nTopics 2021 \\n205-2 Communication and training \\nabout anti-corruption policies and \\nprocedures \\nRelevant disclosures of corporate \\ngovernance practices that are applied \\nbeyond the regulatory requirements \\n263 \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n201 \\nTAX \\n \\n \\nLocation \\nPages \\n GRI 207: Tax 2019 \\n207-1 Approach to tax \\n“WE PAY OUR FAIR SHARE” is the \\ncore principle the PUMA Group is \\ntaking into consideration for its global \\ntax strategy. In this regard, PUMA \\nfully commits to act in accordance \\nwith all international tax regulations \\nand to fulfill any tax obligations \\narising from its business activities. \\nAll information regarding PUMA’s tax \\napproach can be found in the tax \\nstrategy \\n(https://about.puma.com/en/investor-\\nrelations/corporate-governance, see \\nTax Strategy) \\n \\n \\n \\nAs it is a general principle for PUMA \\nto follow tax rules and to pay \\napplicable taxes, taxes as such are \\nnot a material issue within the \\nsustainability approach. \\nConsequently, PUMA does not report \\nin detail on the GRI Standard in this \\nregard. \\n \\n \\n \\n \\n \\n \\n \\nMATERIALS \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nRecycled material usage; Material \\norigin \\n157, 173 \\nGRI 301: Materials \\n2016 \\n301-1 Materials used by weight or \\nvolume \\nRecycled material usage; Material \\nconsumption data \\n157, 173 \\n \\n301-2 Recycled input materials used \\nRecycled material usage \\n157, 173 \\n \\n \\n \\n \\n \\n \\nENERGY \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nClimate \\n104 \\nGRI 302: Energy \\n2016 \\n302-3 Energy intensity \\nClimate \\n104 \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n202 \\nWATER AND EFFLUENTS \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nWater and air \\n142 \\n \\n303-2 Management of water \\ndischarge-related impacts \\nWater and air \\n142 \\n \\n303-5 Water consumption \\nWater and air \\n142 \\n \\n \\n \\n \\n \\n \\nBIODIVERSITY \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nBiodiversity \\n177 \\nGRI 304: \\nBiodiversity 2016 \\n304-1 Operational sites owned, \\nleased, managed in, or adjacent to, \\nprotected areas and areas of high \\nbiodiversity value outside protected \\nareas \\nBiodiversity \\n177 \\n \\n \\n \\n \\n \\n \\nEMISSIONS \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nClimate \\n104 \\n \\n305-1 Direct (Scope 1) GHG emissions Climate \\n104 \\n \\n305-2 Energy indirect (Scope 2) GHG \\nemissions \\nClimate \\n104 \\n \\n305-3 Other indirect (Scope 3) GHG \\nemissions \\nClimate \\n104 \\n \\n305-4 GHG emissions intensity \\nClimate \\n104 \\nGRI 305: Emissions \\n2016 \\n305-5 Reduction of GHG emissions \\nClimate \\n104 \\n \\n \\n \\n \\n \\n \\nWASTE \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nCircularity \\n156 \\n \\n306-1 Waste generation and \\nsignificant waste-related impacts \\nCircularity \\n156 \\nGRI 306: Waste 2020 306-2 Management of significant \\nwaste-related impacts \\nCircularity \\n156 \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n203 \\nOCCUPATIONAL HEALTH AND SAFETY \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nOur people occupational health and \\nsafety \\n22 \\n \\n403-2 Hazard identification, risk \\nassessment, and incident \\ninvestigation \\nOur people occupational health and \\nsafety \\n22 \\n \\n403-9 Work-related injuries \\nOur people occupational health and \\nsafety \\n22 \\n \\n \\n \\n \\n \\n \\nDIVERSITY AND EQUAL OPPORTUNITY \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nRelevant disclosures of corporate \\ngovernance practices that are applied \\nbeyond the regulatory requirements \\n254 \\nGRI 405: Diversity \\nand Equal \\nOpportunity 2016 \\n405-1 Diversity of governance bodies \\nand employees \\nRelevant disclosures of corporate \\ngovernance practices that are applied \\nbeyond the regulatory requirements \\n254 \\n \\n \\n \\n \\n \\n \\nFREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nHuman Rights in the supply chain \\n55 \\nGRI 407: Freedom of \\nAssociation and \\nCollective \\nBargaining 2016 \\n407-1 Operations and suppliers in \\nwhich the right to freedom of \\nassociation and collective bargaining \\nmay be at risk \\nHuman Rights in the supply chain \\n55 \\n \\n \\n \\n \\n \\n \\nFORCED OR COMPULSORY LABOR \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nHuman Rights in the supply chain \\n55 \\nGRI 409: Forced or \\nCompulsory Labor \\n2016 \\n409-1 Operations and suppliers at \\nsignificant risk for incidents of forced \\nor compulsory labor \\nHuman Rights in the supply chain \\n55 \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n204 \\nSUPPLIER SOCIAL ASSESSMENT \\n \\n \\nLocation \\nPages \\nGRI 3: Material \\nTopics 2021 \\n3-3 Management of material topics \\nHuman Rights in the supply chain \\n55 \\nGRI 414: Supplier \\nSocial Assessment \\n2016 \\n414-1 New suppliers that were \\nscreened using social criteria \\nHuman Rights in the supply chain \\n55 \\n \\n414-2 Negative social impacts in the \\nsupply chain and actions taken \\nHuman Rights in the supply chain \\n55 \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n205 \\nKPMG ASSURANCE STATEMENT \\nTo the PUMA SE, Herzogenaurach \\nWe have performed a limited assurance engagement on the combined separate non-financial group report \\nof PUMA SE, Herzogenaurach (hereinafter: “company”), which was combined with the non-financial report \\nof the parent company for the period from January 1 to December 31, 2023 (hereinafter the “consolidated \\nnon-financial report”). This consolidated non-financial report consists of the chapter “Sustainability”, the \\nsection “Culture” in the chapter “Our People” and the sections “Compliance Management System” and \\n“Corporate Social Responsibility” in the chapter “Corporate Governance Statement in accordance with \\nSection 289f and Section 315d HGB” of the Annual Report 2023 of PUMA SE, Herzogenaurach. \\nNot subject of our assurance engagement was the material audit of the external sources of documentation, \\ninterviews, case studies, expert opinions, the Environmental Profit & Loss figures as well as checking the \\ncontent of links to internet pages mentioned in the non-financial report (see Annex 1 to the assurance \\nreport). \\nResponsibilities of Management \\nManagement of PUMA SE, Herzogenaurach, is responsible for the preparation of the consolidated non-\\nfinancial report in accordance with Sections 315c in conjunction with 289c to 289e HGB and Article 8 of \\nREGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of June 18, 2020 on \\nestablishing a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 \\n(hereinafter the “EU Taxonomy Regulation”) and the Delegated Acts adopted thereunder, as well as for \\nmaking their own interpretation of the wording and terms contained in the EU Taxonomy Regulation and the \\ndelegated acts adopted thereunder as set out in section “Reporting in accordance with the EU taxonomy \\nregulation” of the consolidated non-financial report. \\nThis responsibility of the legal representatives of the company includes the selection and application of \\nappropriate non-financial reporting methods and making assumptions and estimates about individual non-\\nfinancial disclosures of the group that are reasonable in the circumstances. Furthermore, management is \\nresponsible for such internal control as they consider necessary to enable the preparation of a consolidated \\nnon-financial report that is free from material misstatement, whether due to fraud (manipulation of the \\nnon-financial group report) or error. \\nThe EU Taxonomy Regulation and the Delegated Acts issued thereunder contain wording and terms that are \\nstill subject to considerable interpretation uncertainties and for which clarifications have not yet been \\npublished in every case. Therefore, management has disclosed their interpretation of the EU Taxonomy \\nRegulation and the Delegated Acts adopted thereunder in section “Reporting in accordance with the EU \\ntaxonomy regulation” of the consolidated non-financial report. They are responsible for the defensibility of \\nthis interpretation. Due to the immanent risk that indeterminate legal terms may be interpreted differently, \\nthe legal conformity of the interpretation is subject to uncertainties. \\nIndependence and Quality Assurance of the Assurance Practitioner \\nWe have complied with the independence and quality assurance requirements set out in the national legal \\nprovisions and professional pronouncements, in particular the Professional Code for German Public \\nAuditors and Chartered Accountants (in Germany) and the IDW Standard on Quality Management 1: \\nRequirements for Quality Management in Audit Firms (IDW QMS 1 (09.2022)). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n206 \\nResponsibility of the Assurance Practitioner \\nOur responsibility is to express a conclusion with limited assurance on the consolidated non-financial report \\nbased on our assurance engagement. \\nWe conducted our assurance engagement in accordance with International Standard on Assurance \\nEngagements (ISAE) 3000 (Revised): “Assurance Engagements other than Audits or Reviews of Historical \\nFinancial Information” issued by the IAASB. This standard requires that we plan and perform the assurance \\nengagement to obtain limited assurance about whether any matters have come to our attention that cause \\nus to believe that the company’s consolidated non-financial report, other than the external sources of \\ndocumentation or expert opinions mentioned in the non-financial report, is not prepared, in all material \\nrespects, in accordance with Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy \\nRegulation and the Delegated Acts issued thereunder as well as the interpretation by management \\ndisclosed in section “Reporting in accordance with the EU taxonomy regulation” of the consolidated non-\\nfinancial report. \\nIn a limited assurance engagement, the procedures performed are less extensive than in a reasonable \\nassurance engagement, and accordingly, a substantially lower level of assurance is obtained. The selection \\nof the assurance procedures is subject to the professional judgment of the assurance practitioner. \\nIn the course of our assurance engagement we have, among other things, performed the following \\nassurance procedures and other activities: \\n• Gain an understanding of the structure of the Group’s sustainability organisation and stakeholder \\nengagement. \\n• Inquiries of management and relevant employees involved in the preparation of the consolidated non-\\nfinancial report about the preparation process, about the internal control system related to this process, \\nand about disclosures in the non-financial report. \\n• A risk analysis, including media research, to identify relevant information on PUMA SE’s sustainability \\nperformance in the reporting period. \\n• Identification of likely risks of material misstatement in the consolidated non-financial report. \\n• Analytical procedures on selected disclosures in the consolidated non-financial report. \\n• Inquiries of management and relevant employees that are responsible for determining disclosures about \\nconcepts, due diligence processes, results and risks, performing internal control procedures and \\nconsolidating disclosures in the preparation of the consolidated non-financial report. \\n• Inspection of selected internal and external documents. \\n• Analytical procedures for the evaluation of data and of the trends of quantitative disclosures as reported \\nat Group level by all sites. \\n• Evaluation of local data collection, validation and reporting processes as well as the reliability of \\nreported data based on a sample taken at nine suppliers (remote site visits) and two offices (on-site and \\nremote site visits). \\n• Assessment of the overall presentation of the disclosures. \\n• Inquiries of Group level personnel in order to understand the processes for identifying relevant economic \\nactivities according to the EU Taxonomy Regulation. \\n• Evaluation of the process for the identification of taxonomy-eligible and taxonomy-aligned economic \\nactivities and the corresponding disclosures in the consolidated non-financial report. \\nIn determining the disclosures in accordance with Article 8 of the EU Taxonomy Regulation, management is \\nrequired to interpret undefined legal terms. Due to the immanent risk that undefined legal terms may be \\ninterpreted differently, the legal conformity of their interpretation and, accordingly, our assurance \\nengagement thereon are subject to uncertainties. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Sustainability \\n \\n207 \\n@@linksunterzeichner--@@\\n@@rechtsunterzeichner--@@\\nAssurance Opinion \\nBased on the assurance procedures performed and the evidence obtained, nothing has come to our \\nattention that causes us to believe that the consolidated non-financial report of PUMA SE, Herzogenaurach \\nfor the period from January 1 to December 31, 2023 has not been prepared, in all material respects, in \\naccordance with Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy Regulation and \\nthe Delegated Acts issued thereunder as well as the interpretation by management as disclosed in section \\n“Reporting in accordance with the EU taxonomy regulation” of the consolidated non-financial report. \\nWe do not express an assurance opinion on the external sources of documentation, interviews, case studies, \\nexpert opinions, Environmental Profit & Loss as well as content of links to internet pages mentioned in the \\nconsolidated non-financial report (see Annex 1 to the assurance report). \\nRestriction of Use \\nThis assurance report is solely addressed to the PUMA SE. \\nOur assignment for PUMA SE and professional liability is governed by the General Engagement Terms for \\nWirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (German Public Auditors and Public Audit Firms) \\n(Allgemeine Auftragsbedingungen für Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) in the \\nversion dated January 1, 2017 (Appendix 2). By reading and using the information contained in this assurance \\nreport, each recipient confirms having taken note of provisions of the General Engagement Terms (including \\nthe limitation of our liability for negligence to EUR 4 million as stipulated in No. 9) and accepts the validity of \\nthe attached General Engagement Terms with respect to us. \\n \\n \\n \\nNuremberg, February 1st, 2024 \\n \\nKPMG AG \\nWirtschaftsprüfungsgesellschaft \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n208 \\nCOMBINED MANAGEMENT REPORT OF \\nPUMA SE FOR THE FINANCIAL YEAR 2023 \\n \\nOverview 2023 \\n210 \\nPUMA Group essential information \\n214 \\nCommercial activities and organisational structure 214 \\nTargets and strategy \\n215 \\nProduct development and design \\n217 \\nSourcing \\n220 \\nEmployees \\n222 \\nManagement system \\n225 \\nInformation regarding the non-financial report \\n227 \\nEconomic report \\n228 \\nGeneral economic conditions \\n228 \\nSales development \\n229 \\nResults of operations \\n233 \\nDevelopment of the segments \\n237 \\nDividends \\n238 \\nNet assets and financial position \\n239 \\nCash flow \\n242 \\nStatement regarding the business development and \\nthe overall situation of the Group \\n245 \\nComments on the Financial Statements of \\nPUMA SE in accordance with the German \\nCommercial Code (HGB) \\n247 \\nResults of operations \\n247 \\nNet assets \\n249 \\nFinancial position \\n250 \\nOutlook \\n250 \\n \\n \\n \\n \\nCombined Management Report: This report \\ncombines the Management Report of the PUMA \\nGroup and the Management Report of PUMA SE \\n \\n \\n \\nInformation concerning takeovers \\n251 \\nCorporate governance statement in accordance \\nwith section 289f and 315d HGB \\n254 \\nRisk and Opportunity Report \\n255 \\nRisk Management System \\n255 \\nRisks \\n258 \\nOpportunities \\n267 \\nOverall Assessment of the Risk and Opportunity \\nSituation \\n268 \\nMain Features of the Internal Control and Risk \\nManagement System as it relates to the Group's \\nAccounting Process \\n268 \\nInternal Control System \\n269 \\nOutlook report \\n272 \\nGlobal economy \\n272 \\nSporting goods industry \\n272 \\nOutlook 2024 \\n272 \\nInvestments \\n273 \\nFoundation for Long-Term Growth \\n273 \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n209 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nNotes relating to forward-looking statements \\nThis document contains statements about the future business development and strategic direction of the \\nCompany. The forward-looking statements are based on management's current expectations and \\nassumptions. They are subject to certain risks and fluctuations as described in other publications, in \\nparticular in the risk and opportunities management section of the combined management report. If these \\nexpectations and assumptions do not apply or if unforeseen risks arise, the actual course of business may \\ndiffer significantly from the expected developments. We therefore assume no liability for the accuracy of \\nthese forecasts. \\n┌ \\nThese sections contain content or cross-references not required by law, which were not audited by the \\nauditor, but were merely read critically. In the case of cross-references, the information to which the cross-\\nreferences refer was also not audited. \\n└ \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n210 \\nOVERVIEW 2023 \\n┌ \\nIn 2023, we celebrated PUMA’s 75th anniversary with events around the world which highlighted our proud \\nhistory with our employees and our brand ambassadors. PUMA’s founder Rudolf Dassler had the vision of \\nmaking products that would provide athletes with the agility and speed of a puma and through this vision, \\nPUMA has left a firm mark on sports and culture since 1948. \\nEven though we faced many global uncertainties during the year, PUMA was able to sustain its strong brand \\nmomentum as we launched significant new products and initiatives. \\nIn Teamsport, the Women's World Cup in Australia and New Zealand was an important moment to \\nemphasize our commitment to women’s football and to demonstrate our leading product offer for women: \\nPUMA is the only sports brand to offer all boots in women’s specific fits. On pitch, PUMA supplied more than \\n100 players and the fact that more than 90% of them chose our women’s fit shows that there is a real \\ndemand for these products. \\nWe introduced new versions of the successful boots ULTRA and FUTURE and redesigned the KING without \\nkangaroo leather. Instead, PUMA uses K-BETTER, a completely new, vegan material for the upper which \\ncontains at least 20% recycled material. K-BETTER has proven to outperform the previous versions of the \\nKING in testing for touch, comfort, and durability. The performance characteristics of K-BETTER were so \\nconvincing that PUMA committed to stop producing football boots with kangaroo leather altogether in 2023 \\nas the first company in the industry. \\nIn club football, PUMA team Manchester City won the treble for the first time in its history: the UEFA \\nChampions League, the Premier League and the FA CUP, showcasing that it’s currently the best football \\nteam in the world. Manchester City was also the first team in PUMA’s history to win the Treble. \\nMany PUMA teams were among the best in their respective countries: In Germany, Borussia Dortmund was \\na close runner up in the Bundesliga, in France, RC Lens and Olympique de Marseille finished second and \\nthird in Ligue 1, in Sweden, Malmö FF won the Allsvenskan and in the Netherlands, PSV Eindhoven once \\nagain won the KNVB Cup. Elsewhere, the young talents of PUMA team Uruguay became world champions at \\nthe FIFA U-20 World Cup in Argentina. \\nTo extend our global reach in football, we signed agreements with South American football federation \\nCONMEBOL and the African football federation CAF. As part of these agreements, PUMA will become very \\nvisible during the tournaments organised by these federations, for example by supplying the official match \\nball, equipping referees and officials and also conducting exciting marketing campaigns which will engage \\nwith football fans on these continents. \\nOn the players’ side, PUMA welcomed some of the most inspirational talents of their generation as brand \\nambassadors in 2023 such as Kai Havertz, the Arsenal and Germany midfielder, Jack Grealish, the \\nManchester City and England playmaker, and Xavi Simons, the RB Leipzig and Netherlands midfielder. \\nIn track and field, the World Athletics Championships in Budapest were an immense success for us, as \\nPUMA-sponsored athletes won 22 medals, including six gold medals, twice the medal count achieved in \\nEugene in 2022. PUMA athletes also won 17 medals at the European Indoor Championships in Istanbul. \\nArmand “Mondo” Duplantis once again set a new pole vault world record of 6 meters 23. For his outstanding \\nperformances, Mondo was named Male Athlete of the Year 2023 – the third time he received this award in \\nfour years’ time. At the World Para Athletics Championships in Paris, PUMA athletes took 13 medals, with \\nCuban sprinter Omara Durand adding to her status as one of the most successful para-athletes of her \\ngeneration with three gold medals. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n211 \\nWe built on our impressive portfolio of brand ambassadors by welcoming Marcell Jacobs, the current \\nOlympic 100 m Champion, and Julien Alfred, the current NCAA 100m Champion to the PUMA Family. \\nIn our Running category, we continued to focus on establishing our NITRO™ foam technology in the market. \\nWith our supercritical NITRO™ foam, PUMA has one of the best foams in the industry and we are fully \\ndetermined to become a sought-after brand in road running. We continue to see a strong growth trajectory \\nin our third year after the launch of our first NITRO™ running shoes and further underlined our credibility \\nwith signings of new running ambassadors: European 5,000 m Champion Konstanze Klosterhalfen, \\nmarathon legend Edna Kiplagat and European marathon Champion Aleksandra Lisowska. \\nIn basketball, we introduced the third signature shoe for PUMA Hoops ambassador LaMelo Ball, the MB.03, \\nfollowing the tremendous success of his first signature products. The MB.03 launched in several colours, \\nincluding a version inspired by the popular cartoon series Dexter’s Laboratory. \\nPUMA teamed up with NBA rookie and the 3rd NBA Draft Pick Scoot Henderson to present the new All-Pro \\nNITRO™, PUMA’s newest basketball silhouette, which features our NITRO™ foam technology. Later in the year, \\nScoot became the youngest player ever to receive his own signature shoe, the Scoot Zeros. Breanna Stewart, \\nour WNBA ambassador, introduced several versions of her signature shoe Stewie 2 throughout the year. \\nOur athletes also achieved tremendous success on court, as Breanna Stewart became the most valuable \\nplayer for the WNBA for the second time and Dennis Schröder became the MVP of the tournament at the \\nBasketball World Championships in Southeast Asia, when he led Germany to its first title. \\nAfter the strong success of PUMA in basketball over the past years, we decided to broaden our reach and \\nfurther strengthen our connection to the younger consumers. Partnering with NXTPRO gives PUMA access \\nto one of the top 3 Amateur Basketball circuits with 15,000 players. \\nIn golf, we introduced the AEROJET family of clubs, which feature a raised skirt, symmetrical shaping and \\nstreamlined edges. Designed to achieve new levels of speed not believed to be possible until now, the \\nAEROJET was named best driver for distance by Golf Monthly. \\nTo underscore our credibility in this sport, PUMA ambassador Rickie Fowler captured his sixth PGA Tour \\nvictory at the Rocket Mortgage Classic in Detroit, while Patricia Isabel Schmidt secured her maiden \\nEuropean Tour win at the Belgian Ladies Open. \\nPUMA further added to its dominant position in motorsport by signing a landmark agreement with Formula \\n1 to become the sport’s official licensing partner and exclusive trackside retailer. While PUMA will equip F1 \\nofficials and our subsidiary stichd will operate the fan retail stores during race weekends, we will also \\nproduce exciting collections for the growing number of F1 fans around the world. \\nThe PUMA x F1 collections will be designed by A$AP Rocky, whom PUMA presented as the creative director \\nfor F1 in a game changing announcement. As one of the biggest cultural influencers of his day, A$AP has the \\nvision and the talent to really provide a new perspective on this category. The first successful capsule \\ncollection was launched during the Las Vegas Grand Prix with many more products to come in 2024 and \\nbeyond. The extension of PUMA’s long-term partnership with Ferrari and a new contract with Williams \\nRacing further increased our dominance in motorsport. \\nIn Sportstyle, global superstar Rihanna returned to PUMA in 2023 and the first joint product of the FENTY x \\nPUMA collection, the Avanti, created a huge buzz and sold out on PUMA.com immediately. At the end of the \\nyear, she followed up on the Avanti with the launch of the Creeper Phatty, a remake of the plateau style she \\npioneered during her first collaboration with PUMA, which was named “Shoe of the Year” by Footwear News \\nin 2016. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n212 \\nPUMA’s Sportstyle offering also benefited from our strong take on the terrace trend. We reintroduced our \\nclassics Palermo and Super Team to the market and saw strong demand for the first drops. To mark 50 \\nyears of hip-hop, PUMA took a journey through time with the iconic Suede, and we created several versions \\nwhich showed how hip-hop evolved and left its unmistakable impact on culture. On time with the ongoing \\nskate trend in the market, we also launched the all-new Suede XL at the end of the year. \\nWith styles such as the CA Pro, Slipstream and Doublecourt, we continued to have the right proposition for \\nthe ongoing demand for white court shoes, with our RS-X and the Velophasis we further built on our \\nProgressive Running offer and with our Mayze we continued to excite our female consumers. \\nOur Sportstyle offer was complemented by several successful Select collaborations with partners such as \\nNoah, Palomo Spain and Rhuigi. \\n└ \\nIn financial year 2023, PUMA found itself in an increasingly difficult geopolitical and macroeconomic \\nenvironment. The conflict in the Middle East, the war in Ukraine, persistent inflation and risks of recession \\nhad a negative impact on the consumer sentiment and led to volatile retail demand. For this reason, the \\nManagement saw 2023 as a transitional year in which PUMA focused entirely on the factors that could be \\ndirectly influenced. The main focus was on operational flexibility, the normalisation of inventories and \\nongoing cost discipline. The purpose of this was to overcome the short-term challenges without \\ncompromising the medium and long-term success of PUMA. In this respect, sales growth and increasing \\nmarket shares took priority over short-term profitability optimisation. \\nDespite the difficult market environment, PUMA was able to further increase its sales and set a new sales \\nrecord in financial year 2023, based on continued strong brand momentum, exciting product launches, \\nstrong partnerships in all areas of the value chain and a focus on flexibility in operating activities. Currency-\\nadjusted sales increased by 6.6%. Due to strong negative currency effects this corresponds to an increase in \\nsales in the reporting currency, the euro, of 1.6% from € 8,465 million in the previous year to € 8,602 million \\nin 2023. The positive sales development was achieved despite the significant devaluation of the Argentine \\npeso and was therefore largely in line with the outlook of currency-adjusted sales growth in the high single-\\ndigit percentage range. \\nUnfavourable currency effects, industry-wide sales promotion measures and fluctuating sourcing prices \\nand freight costs had a negative impact on the gross profit margin in 2023. These negative effects were more \\nthan offset by price adjustments and a favourable regional and distribution channel mix. Overall, this led to \\nan improvement in the gross profit margin from 46.1% in the previous year to 46.3% in 2023. The net \\nexpenditure of other operating income and expenses increased by a total of 3.3% in financial year 2023 to \\n€ 3,403 million (from € 3,296 million in the previous year). The increase was mainly due to higher sales-\\nrelated distribution and other variable costs, the strong growth in our direct-to-consumer sales and higher \\nmarketing investments. This development was partially offset by operational leverage in other cost areas \\nand favourable exchange rate effects. Due to the continued cost control, the cost ratio increased only from \\n38.9% in the previous year to 39.6% in 2023. \\nDespite the sales growth and the improvement in the gross profit margin, the slight increase in the cost \\nratio during the past financial year led to a slight decline in operating result (EBIT) of 3.0% to € 621.6 million \\n(from € 640.6 million in the previous year). Despite the significant devaluation of the Argentine peso, \\noperating result was therefore well within the € 590 million to € 670 million range. However, the EBIT \\nmargin fell from 7.6% in the previous year to 7.2% in 2023. The devaluation of the Argentine peso had a \\nparticularly negative effect on the financial result. Because of this, consolidated net income amounted to \\n€ 304.9 million compared to € 353.5 million in the previous year. This corresponds to a decrease of 13.7%. \\nEarnings per share therefore decreased from € 2.36 in the previous year to € 2.03. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n213 \\nThe positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose \\nthe distribution of a dividend of € 0.82 per share for the financial year 2023 at the Annual General Meeting on \\n22 May 2024. This corresponds to a payout ratio of 40.3% of consolidated net income according to IFRS. The \\nhigher payout ratio results from the strong improvement in free cash flow and reflects the underlying \\npositive operating business development. In general, PUMA's dividend policy continues to provide for a \\npayout of 25% to 35% of consolidated net income. In the previous year, a dividend of € 0.82 per share was \\npaid out (payout ratio for previous year: 34.7%). \\nThe PUMA share had a negative performance in financial year 2023. Based on the share price at the end of \\nthe previous year, the PUMA share started 2023 at a price of € 56.70. In the following twelve months, the \\nprice of the PUMA share ranged between € 67.22 (February 2023) and € 44.36 (May 2023). At the end of 2023, \\nthe price of the PUMA share was € 50.52, which represents a decline of 10.8% compared to the previous \\nyear. The market capitalisation of the PUMA Group amounted to around € 7.6 billion at year-end 2023 \\n(previous year: € 8.5 billion). \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n214 \\nPUMA GROUP ESSENTIAL INFORMATION \\nCOMMERCIAL ACTIVITIES AND ORGANISATIONAL STRUCTURE \\nPUMA SE operates as a European stock corporation with Group headquarters in Herzogenaurach, Germany. \\nIn the internal reporting, our business activities are mapped according to three major regions (EMEA, the \\nAmericas and Asia/Pacific) and three product divisions (footwear, apparel and accessories). In addition, we \\nconsider seven segments for internal management purposes, as shown in the segment reporting. \\nOur revenues are derived in particular from the sale of products from the PUMA and Cobra Golf brands via \\nthe wholesale and retail trade, as well as from sales directly to consumers in our own retail stores and \\nonline stores. We market and distribute our products worldwide primarily via our own subsidiaries. There \\nare distribution agreements in place with independent distributors in a small number of countries. \\nAs of 31 December 2023, 99 subsidiaries were controlled directly or indirectly by PUMA SE. Our subsidiaries \\ncarry out various tasks at the local level, such as distribution, marketing, product development, sourcing \\nand administration. A full list of all subsidiaries can be found in chapter 2 of the Notes to the Consolidated \\nFinancial Statements (in the subsection \\\"Group of consolidated companies\\\"). \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n215 \\nTARGETS AND STRATEGY \\nPUMA started 2023 by sharpening its strategic priorities. \\n↗ G.01 STRATEGIC PRIORITIES \\n \\nOur strategic framework consists of a triangle: Elevate the Brand, Increase Product Excellence, and \\nImprove Distribution Quality. Within this context, we placed a special emphasis on implementing this \\nstrategic framework in the US and China – two key countries where our current market shares are \\nsignificantly too low. The strategic framework triangle is based on our three foundational pillars of focusing \\non people first, evolving sustainability and digitalizing PUMA’s infrastructure. \\n┌ \\nBy elevating the brand, we want to anchor PUMA more deeply in the hearts and minds of customers, to \\nbecome more consumer centric and to focus our investments on fewer Tier 1 ambassadors with a bigger \\nreach. Finally, we will also improve our focus and engage with consumers with fewer, bigger and better \\nbrand and product campaigns going forward. \\nWith our rich history of having served athletes since 1948, our PUMA brand has some of the best logos in the \\nwhole industry and a huge archive of the most iconic sport moments, athletes, and products in history. This \\nunmatchable DNA gives our product designers and marketeers a unique opportunity to tell our brand and \\nproduct stories with the authenticity and credibility of a true sports brand. \\nWe continuously focus on enhancing our product excellence and we put innovation and quality at the heart \\nof our designs. All PUMA products will have 100% sports DNA. While we celebrate the sports roots of our \\nshoes on the Sportstyle side, we push for new innovations on the performance side to make our athletes \\neven faster. We keep on leveraging our NITRO™ foam technology in our key running styles Deviate, Velocity \\nand ForeverRun and are continuously evolving to improve the cushioning, responsiveness and weight of our \\nshoes. We are also continuously evolving our three strong football footwear franchises FUTURE, ULTRA and \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n216 \\nKING, which is reflected in our ongoing market share gains in this highly competitive market. Finally, we \\nalso introduced the All-Pro, which we believe is one of the best basketball shoes in the industry and we will \\ncontinue to evolve our All-Pro proposition going forward. \\nPUMA is continuously improving the quality of its distribution in wholesale. Our retail partners are our key \\npriority as we believe that the consumers enjoy a multi-branded retail environment to make the best \\nproduct choices. To cater to the requirements of our retail partners and to build long-term partnerships \\nwith them, we provide our retail partners with the best and fastest service in the industry. PUMA continues \\nto pursue its direct-to-consumer business as a complementary offering in its distribution strategy to realize \\nthe roles which our retail partners cannot fulfil, namely brand storytelling. \\n└ \\nIn the United States, we see significant opportunities to enhance our market share in the world’s biggest \\nsports market. To achieve this, we need to position ourselves as a credible performance brand. Our \\ninitiatives in basketball, motorsport and even football - as our new partner CONMEBOL will host the next \\nCopa America in the US – will all contribute to this target. With our roster of athletes including LaMelo Ball, \\nScoot Henderson, and Breanna Stewart in basketball and Christian Pulisic in football, we have the right \\nbrand ambassadors in place to connect with our target audiences in a credible manner. Furthermore, we’re \\nalso focussing on creating more US-first products, improving our distribution quality in the US and \\nstrengthening our local US organisation. \\nNext to the United States, we see significant opportunities to enhance our market shares in China, the \\nworld’s most dynamic sports market. PUMA also has a clear strategy in place when it comes to our rebound \\nin the Chinese market. We want to position PUMA as a global sports brand in China, leverage our local-for-\\nlocal resources both in terms of design and sourcing to deliver the right product to the Chinese consumer, \\nimprove our distribution quality in this digital-first market and strengthen our local China organisation. \\nPutting our people first is an important part of our corporate strategy. PUMA’s working culture is \\ncharacterised by diversity, inclusion, and equality, as our employees have many different nationalities and \\nbackgrounds. We believe this diversity to be one of our key strengths and we were thrilled to be named a \\nglobal Top Employer in 2023. Our commitment to equality was rewarded when an independent agency \\ncertified that we had closed the adjusted pay gap between women and men among our employees in \\nGermany. We will continue to work hard to provide our employees with an inspiring place to work which \\nreflects our values. \\nThe aim of our FOREVER.BETTER. sustainability strategy is to fully integrate sustainability into all our core \\nbusiness functions. By 2025, we want to make nine out of ten products with materials such as certified \\ncotton and viscose or recycled polyester. We also want to become more circular. \\nWith our RE:SUEDE project, we showed in 2023 how we can successfully turn an experimental version of our \\nclassic Suede sneaker into compost under certain tailor-made industrial conditions. Going forward, we will \\ncontinue to innovate with our partners to determine the infrastructure and technologies needed to make the \\nprocess viable for a commercial version of the RE:SUEDE, including a takeback scheme. \\nTo reach younger audiences with our sustainability strategy, we started our “Voices of a RE:GENERATION” \\ninitiative. The Voices, who are GEN-Z activists and environmentalists, regularly join PUMA to give our senior \\nmanagement feedback on how we can further strengthen our sustainability strategy. The voices also visited \\nthe factories of our partners in Asia and Turkey and helped us communicate with younger audiences \\nthroughout the year. We believe that new ways of communication like this and transparency are essential for \\nthe journey towards a more sustainable world. \\nTo operate efficiently and to keep up with our growth momentum, we constantly improve our infrastructure \\nand processes. This includes investments in our IT systems, distribution centres and offices around the world. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n217 \\nPRODUCT DEVELOPMENT AND DESIGN \\nEnhancing the excellence of our products is one of PUMA’s strategic priorities. In order to accomplish this, \\nwe will focus on five key measures: authentic sports DNA across all our products, design and innovation \\nexcellence, focus on clear must-win priorities, creating product franchises as a brand, and a global-local \\n(“glocal”) product creation approach. \\n┌ \\nAs a sports company, PUMA has 75 years of history and sports authenticity, created by writing history \\nalongside the world’s fastest athletes. All PUMA products will have 100% sports DNA. While we celebrate \\nthe sport roots of our products and rich archive on the non-performance side, we push for new innovations \\non the performance side. \\n└ \\nIn addition to the clear sports DNA of our products, we also place a special emphasis on design and \\ninnovation across all our categories. We have a strong pipeline of innovations across all our performance \\ncategories both on the footwear and apparel side. We have the clear ambition to make the fastest products \\nfor the fastest athletes and our innovative technologies such as NITRO™ will ensure that we live up to this \\nambition. \\n┌ \\nAlso on the design side, PUMA has a rich history of firsts and bests. We built on our legacy in 2023 by \\nrelaunching the Avanti with global icon Rihanna, a style which is based on the sneaker through which PUMA \\nrevolutionised the category in the 1990s. The Avanti is a perfect example of how we leverage our rich archive \\nof iconic silhouettes while ensuring cutting-edge and on-trend design in the here and now. \\nTo sharpen our focus, we decided to implement fewer, bigger and better product stories and we defined four \\nclear must-win priorities that we will focus on: classics, sports culture, our NITRO™ technology and \\ncreating the best product offer for women. \\nClassics are one of PUMA’s biggest asset, given our rich history and our vast archive, which continues to \\ninspire our designers today. PUMA was already an established brand when football transformed to terrace, \\nskate became streetwear and when fashion embraced low profile styles. This means that PUMA has \\ngenuine credibility to respond to the return of such trends. \\nThrough its archive and history, PUMA will continue to incubate new trends, such as low profile, and \\ncapitalise on existing trends such as the prevalent terrace and skate trends. \\nFor PUMA, sports culture is about more than the game, as the influence of sport can be felt long after the \\nfinal whistle or the chequered flag. In Football, the terrace trend first started in the football stadiums of the \\n1980s and made its way into fashion and streetwear. \\nBasketball also has a direct impact on culture and streetwear, for example when the players make strong \\nfashion statements on their way into the venue of the game, or when celebrities show of their style as they \\nsit courtside. \\nFew players embody this spirit and cultural influence like our ambassador LaMelo Ball, with whom we will \\ncontinue to work on his range of signature shoes which blend performance and style. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n218 \\nIn Motorsport, some of the biggest names in sports, film and music regularly attend Formula 1 races and \\ncan be seen in the pits on race weekends. By hosting races across the planet and popular documentaries \\nfeaturing the sport, F1’s global viewership has skyrocketed in recent years and the audience has become \\nmore female and diverse, further increasing its influence on culture. With our strong legacy and authenticity \\nin motorsport, we’re well positioned to capitalise on this growing cultural influence and create relevant F1-\\ninspired streetwear. We already showcased this approach when we released a bespoke capsule collection \\nwith A$AP Rocky, our creative director for the PUMA X F1 partnership, during the Las Vegas Grand Prix. \\nNITRO™, one of the best foam technologies in the industry, is at the core of our successful return to \\nperformance running and we will continue to invest significant resources into these performance products. \\nPUMA has a long-term vision for the running category, with a pipeline of innovations going beyond the next \\nfour or five years. \\nNITRO™ foam maximizes responsiveness and cushioning while being extremely lightweight, and while it \\nwas created as part of our performance running line up, it is also used in other categories, for example in \\nbasketball. \\nPUMA has set up state of the art testing facilities in Germany and the US for our elite athletes, called \\nNITRO™ LAB, which can gather full-body insights to develop bespoke and customised products, so they can \\nperform at their best. \\nNITRO™ is used in our award-winning running styles Deviate, Velocity and the latest addition ForeverRun. \\nWith these three styles, we have a clear product proposition for our consumers. \\nWomen have been a priority for PUMA for many years, and we are doubling down on our commitment to \\nmake the best products for her, whether it is female-specific fits for our footwear or other products \\nspecifically catering to the needs of women. \\nWe take her serious throughout our performance categories, for example in football, where following two \\nyears of research, PUMA is the only sports brand to offer all football boots in fits that are specifically \\ndeveloped for female feet, with a lower volume in the midfoot and a smaller instep compared to unisex \\nsizes. More than 90% of PUMA’s professional female players choose their boots in women’s specific fits, \\nwhich shows the real demand for such products. \\n└ \\nWhile PUMA is not afraid to combine performance and non-performance, our goal is not to be a fashion \\nbrand but make sports on trend. \\nWe will continue to create products for her and communicate to our female consumers through campaigns \\nwith our global ambassadors such as Rihanna and Dua Lipa, and Pamela Reif. \\nAnother clear area of product excellence is to create franchises as brands with well-defined consumer \\nbenefits such as Deviate, Velocity and ForeverRun in running, FUTURE, ULTRA, and KING in football as well \\nas All-Pro and MB in basketball. In non-performance categories, we also see the opportunity to establish \\nstrong product franchises such as Suede, and Palermo on the Classics side or RS-X and Mostro on the \\nProgressive side. Going forward, we will continue to focus on these key products and ensure a long-term \\nstrategy across all our categories. \\nWe have set up local creation centres in major markets such as the US, Europe, China, India, or Japan so \\nthey can design the products that best resonate with local consumers and we are active in regionally \\nrelevant sports such as cricket, handball, rugby, or netball. We believe that this glocal approach to product \\ncreation combining global Business Units and local creation centres ensures the perfect balance of global \\nreach and consistency and local relevance of our products. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n219 \\nResearch and product development at PUMA mainly comprise the areas of innovation (new technologies), \\nproduct design and model and collection development. The research and product development activities \\nrange from the analysis of scientific studies and customer surveys through the generation of creative ideas \\nto the implementation of innovations in commercial products. The activities in research and product \\ndevelopment are directly linked to sourcing activities. \\nAs of 31 December 2023, a total of 1,406 people were employed in research and development/ product \\nmanagement (previous year: 1,307). In 2023, research and development/ product management expenses \\ntotalled € 171.5 million (previous year: € 153.1 million), of which € 89.0 million (previous year: € 82.2 million) \\nrelated to research and development. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n220 \\nSOURCING \\n \\nTHE SOURCING ORGANISATION \\nPUMA Group’s sourcing functions, referred to as PUMA Group Sourcing (PGS), manages all sourcing related \\nactivities for PUMA and Cobra, including supplier selection, product development, price negotiation and \\nproduction control. These activities are centrally managed by PUMA International Trading GmbH (PIT), the \\ngroup’s global trading entity, with its head office in the Corporate headquarters in Herzogenaurach \\n(Germany). In addition, PIT is responsible for procurement and supply into the PUMA distribution channels \\nworldwide. PIT receives volume forecasts from PUMA subsidiaries and licensees worldwide, translates \\nthese forecasts into production plans which are subsequently distributed to the third-party vendors. The \\nPUMA subsidiaries confirm their forecasts into purchase orders to PIT, which in turn consolidates these \\nrequirements and purchases from the vendors. There is a clear buy/sell relationship between the sales-\\nsubsidiaries and PIT and between PIT and the vendors, for added transparency. \\nThe centralisation of the sourcing and procurement functions supported by a cloud-based purchase order \\nmanagement and payment platform has enabled the digitalisation of the supply chain creating \\ntransparency, operational efficiency and reducing complexity. For example, container fill rates are \\noptimised, foreign currency risks are managed by PIT directly via a centralised currency hedging policy, and \\nall payments to vendors are automated and paper free. \\nTo meet the needs of our customers in terms of service, quality, social and environmental sustainability, we \\nfocus on six core strategic pillars: partnership, product quality, growth management, margins, acquisition \\ncosts and sustainability. The integration of PUMA's sustainability function into the sourcing organisation \\nensures that industry standards, including social, environmental, chemical safety, as well as product \\ncompliance are closely integrated with all our sourcing activities. \\nAnother key aspect in our sourcing setup since 2016 has been the PUMA Forever Better Vendor Financing \\nProgram. The program allows suppliers to be paid earlier. The International Finance Corporation (IFC), \\nbanking group BNP Paribas, HSBC and Standard Chartered offer attractive financing terms to our suppliers, \\nallowing them to maintain their own lines of credit. \\nIn 2023, no sourcing countries experienced material COVID restrictions. The lifting of restrictions enabled \\nfull normalisation of the supply chain to pre-pandemic levels. \\nHigh inflation, fluctuating raw material cost and freight cost impacted the company's operations. In view of \\nthe global macroeconomic situation, which has led to a change in customers' ordering behavior and \\nincreased inventory levels resulted in a need for more cautious procurement from our suppliers. Hence, we \\nactively adjusted sourcing activities respectively and continued to provide transparency to our sourcing \\npartners so they can adjust their capacities accordingly. Despite these challenges, we remained committed \\nto delivering value to our stakeholders and implemented strategies to mitigate the adverse effects of the \\nprevailing market conditions. Together with sustained demand for PUMA products in 2023 this led to a \\nfurther normalisation of PUMA inventory levels, in line with expectations. \\nOur supplier partners form an integral part of the PUMA business. To recognise our suppliers, we organised \\na Supplier Summit in June 2023 at PUMA Headquarters in Herzogenaurach, bringing them together across \\nall divisions for the first time in over six years. During the Summit, we shared recent and upcoming \\nbusiness developments and expressed gratitude for their partnership with PUMA. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n221 \\nTHE SOURCING MARKETS \\nDuring the financial year 2023, PIT purchased from 158 independent suppliers (previous year: 141) in 29 \\ncountries worldwide. The strategic cooperation with long-term partners continues to be one of our key \\ncompetitive advantages and was crucial in navigating through ongoing supply chain challenges of 2023. \\nAsia is the strongest sourcing region overall with 95% of the total volume, followed by the Americas with 3% \\nand EMEA with 2% (thereof Europe with 1% and Africa with 1%). \\nAs a result, the six most important sourcing countries (94% of the total volume) are all located in the Asian \\ncontinent. China is the biggest production country in 2023 with a total of 32%. While the absolute volumes in \\nChina for apparel have decreased, it was further strengthened as a strategic origin for footwear in 2023. \\nVietnam – a key development and sourcing hub for all three divisions – is the second biggest production \\ncountry with 30%. Cambodia is in third place at 13%, Bangladesh, which focusses on apparel, is in fourth \\nplace at 12%. Indonesia, with an initial focus on footwear production and increasing volumes for apparel, \\nproduces 4% of the total volume and is in fifth place. India – only serving the local market - is in sixth place \\nat 3%. In the growth market of India, we see ourselves in a good competitive position due to local sourcing \\nand are therefore also able to limit the impact of the government's protectionist measures on our business. \\nRising wage costs, fluctuating material prices, macroeconomic developments and evolving sustainability \\nregulations, have continued to influence sourcing markets in 2023. Such impacts need to be considered in \\nallocating the production to ensure a secure, sustainable, and competitive sourcing of products. In this \\nregard sourcing continues to extend its local supply chain initiatives for markets such as China, India, Latin \\nAmerica, Türkye and others. Our sourcing activities resumed with business travel to key sourcing markets \\nin order to visit our existing partners but also evaluate new vendors and opportunities in sourcing countries \\nsuch as Indonesia. \\n↗ G.02 SOURCING REGIONS OF PUMA (in %) \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n222 \\nEMPLOYEES \\n \\nNUMBER OF EMPLOYEES \\nThe global number of employees on a yearly average was 18,023 in 2023, compared to 16,669 in the previous \\nyear. Personnel expenses increased by a total of 6.4% from € 846.5 million to € 900.6 million in 2023. On \\naverage, personnel expenses per employee amounted to € 50.0 thousand, compared to € 50.8 thousand in \\nthe previous year. \\n↗ G.03 CHANGES IN EMPLOYEES (annual average / year-end) \\n \\nAs of 31 December 2023, the number of employees was 18,681, compared to 18,071 in the previous year. This \\ncorresponds to an overall increase in the number of employees of 3.4% compared to the previous year. The \\ndevelopment in the number of employees per area is as follows: \\n↗ G.04 EMPLOYEES (year-end) \\n \\n \\n \\n13,348\\n13,016\\n14,846\\n16,669\\n18,023\\n14,332\\n14,374\\n16,125\\n18,071\\n18,681\\n2019\\n2020\\n2021\\n2022\\n2023\\nEmployees (annual average)\\nEmployees (year-end)\\n13,343\\n1,307\\n3,421\\n13,647\\n1,406\\n3,628\\nMarketing / retail / sales\\nResearch & development / product\\nmanagement\\nAdministration and general units\\n2022\\n2023\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n223 \\nTALENT RECRUITMENT AND DEVELOPMENT \\n┌ \\nOur PUMA family is the key to our success. Our human resources strategy forms the basis of our unique \\nworking environment and corporate culture. These help us to attract the best talent worldwide and secure \\nthe future success of the company. The three core elements of this strategy are \\\"People First\\\", sustainable \\nhuman resources practices and digitalisation. \\nPeople First means understanding employees' needs, values, and potential and putting them at the centre \\nof our decision making. It helps us create an inclusive culture that respects diversity, promotes health and \\nwell-being, and encourages personal and professional growth. \\nSustainable people practises create a workplace culture that prioritises employee health and happiness, \\ndiversity, and inclusivity, and offers ample opportunities for career growth. Our sustainable people practices \\nare central to building a resilient organisation. By thinking ahead and equipping our employees with the \\nfuture skills and leadership qualities necessary, we ensure the long-term success of PUMA. \\nDigital tools in Human Resources improve the work experience of our employees and help us stay \\ncompetitive and agile in a fast-changing business landscape. By using digital technology, we are improving \\nefficiency, data-driven decision-making, and candidate and employee experiences. We deploy easy-to-use \\ndigital tools that enhance collaboration and productivity and offer digital literacy programmes to ensure all \\nemployees are equipped to thrive in a digital environment. \\n└ \\nTo attract external applicants, we use digital platforms and social media in addition to our careers website \\nin order to pursue proactive recruitment strategies that are tailored to our specific target groups. Having a \\nrange of on-site and online initiatives at universities both in Germany and abroad creates opportunities to \\napproach potential employees and identify suitable candidates. Our extensive networks and applicant pools \\nenable us to fill vacancies quickly. In a competitive labour market, it's essential for us not only to present \\nourselves as an attractive employer, but to be viewed as such by our current and potential employees. \\nPUMA's attractiveness is evidenced by its top rankings as an employer and numerous awards. We are very \\nproud that 24 of our PUMA subsidiaries across the regions (Europe, APAC, LATAM and North America) won a \\ncoveted Top Employer award in the year under review in recognition of our outstanding corporate culture \\nand working environment. We can therefore continue to call ourselves a \\\"Global Top Employer\\\". We were \\nalso named one of the \\\"World's Best Employers\\\" by Forbes and a \\\"Leader in Diversity\\\" by the Financial \\nTimes, and awarded the \\\"Great Place to Work\\\" seal in numerous countries. \\n┌ \\nIn 2023 we continued to work on simplifying, accelerating and harmonising our business processes \\nworldwide, and intensified the digitalisation of our processes. We have been using the \\\"Workday\\\" software \\nsolution for a wide range of HR workflows since 2017. This gives our employees and managers the processes \\nand tools they need to make everyday human resources management efficient. Furthermore, easy-to-use \\ndashboards provide managers with important information and data-driven insights that are essential to \\ntheir planning work and managerial duties. Analysing our centralised, globally available data provides a \\nsolid foundation for making strategic decisions and delivers measurable results. Our objective is to use this \\ndigitalised infrastructure to increase operational efficiency and continuously improve our HR practices \\nthroughout the employee life cycle at PUMA. This in turn facilitates PUMA's overarching goal of optimising \\nworkflows and employees' experiences. It also gives us the means to deal more effectively with the \\ndynamics of demanding labour markets. \\nWe empower our employees to shape their own career paths proactively and independently, promoting their \\nprofessional development both within Germany and internationally. This is how we succeed in inspiring their \\nloyalty to the company in the long term. As part of our talent management initiative, we use Workday not \\nonly to assess performance and set targets, but also to make systematic and forward-looking succession \\nplans for key positions. We identify talent within the company during annual performance reviews and global \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n224 \\ntalent conferences, and foster their development through tailored development plans. This approach to \\ntalent management opens up attractive career and development opportunities for our employees. As in the \\nprevious financial year, this year we were again able to fill the majority of key positions worldwide via \\ninternal promotions or horizontal moves, which confirms that our talent management and employee \\ndevelopment strategy is solid. \\nThe ongoing personal and professional development of our employees is crucial to ensuring that our team \\nhas the skills they need to guarantee us continuous growth and market competence, particularly in times of \\ngreat uncertainty and change. Workday helps us to avoid skills shortages and maintain a clear overview of \\nthe existing competencies in our team. In 2023 we examined this issue more closely, delving deeper in \\nparticular into the competencies that we will need in the future. The insights we gained from this deep dive \\nare essential for us in terms of strategic human resources planning. They form the basis for our \\nrecruitment activities and for the development of new training programmes. \\nThe range of training that we provide includes a number of online and offline training courses and \\nworkshops, which are either standardised or tailored to individual needs. With \\\"LinkedIn Learning\\\" and \\\"Good \\nHabitz\\\", there are now over 23,000 different training courses available for our employees. They also have a \\nwide range of learning categories to choose from for self-directed personal and professional development. \\nLike last year, we focused particularly on the topics of mental well-being, resilience and mindfulness this \\nyear, providing our employees with a wide range of services to best support them in dealing with the \\nincreased mental strain that can often arise in this politically and economically difficult environment. \\nWe have a proactive strategy for engaging learners. This includes putting on entertaining activities about \\nvarious topics, gamification and internal learning competitions, not to mention the quarterly Top Learner \\nAward for the most active learners worldwide. Thanks to this approach, PUMA was nominated for the \\n\\\"eLearning Journal\\\" Award 2024 in the \\\"Learner Engagement\\\" category. We further expanded the Digital \\nAgile Coach programmes that we offer to various target groups. \\nWe have a global Busuu licence that provides access to 13 languages. This enables all our employees, \\nincluding retail staff, to learn new languages online in a flexible way that meets their needs. They are \\nsupported by live lessons with qualified trainers. Learning is undertaken both via an app and in direct \\ncontact with others. There is a particular focus on English, but Busuu also facilitates the learning of other \\nlanguages for personal or professional purposes. \\nWith a range of dual-study programmes and apprenticeships, as well as study-related internships, we offer \\nadequate entry-level and development opportunities for talented individuals at all levels. \\nWe offer our managers numerous training and development opportunities. All managers worldwide \\ncomplete our internal global leadership training programme, consisting of the ILP (International Leadership \\nProgramme) and ILP² seminar series. The programme ensures a uniform understanding of leadership at \\nPUMA and promotes development among participants over the longer term. It offers intensive training and \\ncoaching, including interactive learning, role play simulations, and best practice learning, as well as joint \\nprojects. The key topics include coaching, mindful leadership, and agile working methods. The PUMA \\nLeadership Expedition training programme aims to empower our managers to lead effectively in the VUCA \\nworld (VUCA is an acronym for volatile, uncertain, complex, and ambivalent). The programme is completely \\nvirtual, easily accessible, and designed as a self-directed and tailor-made learning format. It includes self-\\nselected virtual training sessions with a trainer, regular communication with other international \\nparticipants in smaller working groups, and coached sessions, as well as individual learning sprints and \\ncheck-ins with the trainers. This innovative training programme received the eLearning AWARD 2023 in the \\n\\\"Agile Learning\\\" category. \\nOur training from employee to manager is intended to prepare employees who are taking on a management \\nposition for the first time specifically for their new role. In addition to the training module, the programme \\nalso offers individual coaching. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n225 \\nOur \\\"Speed Up\\\" and \\\"Speed Up²\\\" development programmes are aimed at employees across different levels \\nof the organisation. These programmes help to fully prepare employees for the next stage of their career, \\ncovering interdisciplinary projects and deployments, targeted training, mentoring, coaching and job \\nrotations. They are designed to actively promote selected top talent. Another essential aspect of these \\nprogrammes is increasing the visibility of participants through to the highest level of management, \\npromoting multi-disciplinary cooperation and developing a strong professional network. \\nFeedback from our employees is of the utmost importance to us. Our listening strategy comprises various \\nmethods of receiving feedback and aims to capture and understand the opinions and needs of our workforce. \\nTo gather their views and suggestions, we prepare questionnaires, regular short surveys, focus groups, \\ninterviews and mood analyses, often using systems such as Amber and Workday. The resulting feedback \\naffirms our commitment to continuing and further developing the initiatives that have been launched. \\nSince 2009 we have been conducting regular global employee surveys to obtain feedback from our staff on a \\nvariety of topics and to measure their engagement. A total of 15,339 employees took part in the global survey \\nwe carried out in 2023 and took the opportunity to tell us what they think about their workplace and their \\nday-to-day work. This equates to a participation rate of 85% (2021: 86%). We saw an increase in positive \\nratings in two categories. Four categories remained at their already high level and seven categories saw a \\nslight decline of 1% compared to the previous survey. We compare our survey results with various sets of \\nmarket data, including high-performance data that we surpass or are equal to in up to four categories. \\nHigh-performing companies are those that outperform the market in financial terms and regularly achieve \\nexcellent employee survey results. This positive feedback encourages us to continue and strengthen the \\nmeasures we have already introduced. The survey results were communicated at global, local and \\ndepartmental level, and follow-up measures were defined. \\nWORKS COUNCIL \\nOur trust-based, constructive collaboration with the Works Councils is an important part of our corporate \\nculture. In 2023, the European Works Council of PUMA SE represented employees from 14 European \\ncountries and had 18 members. The German Works Council of PUMA SE consisted of 17 members and \\nrepresented the employees of the PUMA Group in Germany. A designated member of the Works Council in \\nGermany represents the interests of employees with disabilities. \\nCOMPENSATION \\nWe at PUMA offer our employees a targeted and competitive compensation system, which consists of \\nseveral components. In addition to a fixed base salary, the PUMA bonus system, profit-sharing programmes, \\nand various social benefits form part of an attractive and performance-based compensation system. In \\naddition, we offer our employees comprehensive services in the areas of further development, employee \\nmotivation, health management, and well-being. We also offer long-term incentive programmes for the \\nsenior management level that honour the sustainable development and performance of the business. The \\nbonus system is transparent and globally standardised. Incentives are exclusively linked to company goals. \\n└ \\nMANAGEMENT SYSTEM \\nWe use a variety of indicators to manage our performance in relation to our top corporate goals. We have \\ndefined growth and profitability as key targets within finance-related areas. Our focus therefore is on \\nimproving our sales and operating result (EBIT). These are the most significant financial performance \\nindicators. Moreover, we aim to minimise working capital and improve free cash flow. Our Group's Planning \\nand Management System has been designed to provide a variety of instruments in order to assess current \\nbusiness developments and derive future strategy and investment decisions. This involves the continuous \\nmonitoring of key financial indicators within the PUMA Group and a monthly comparison with budget \\ntargets. Any deviations from the targets are analysed in detail and appropriate countermeasures are taken \\nin the event such deviations have a negative impact. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n226 \\nChanges in sales are also influenced by currency exchange effects. This is why we also state any changes \\nin sales in euros, the reporting currency, adjusted for currency exchange effects in order to provide \\ninformation that is relevant to the decision-making process when assessing the revenue position. Currency-\\nadjusted sales are used for comparison purposes and are based on the values that would arise if the foreign \\ncurrencies included in the consolidated financial statements were not converted at the average rates for the \\nprevious year, but were instead translated at the corresponding average rates for the current year. In the \\ncase of countries that are in a hyperinflationary environment, the previous year's amounts are not converted \\nat the reporting date rates of the previous year, but at those of the current reporting year. As a result, \\ncurrency-adjusted figures are not to be regarded as a substitute or as superior financial indicators, but \\nshould instead always be regarded as additional information. \\nWe use the indicator free cash flow in order to determine the change in cash and cash equivalents after \\ndeducting all expenses incurred to maintain or expand the organic business of the PUMA Group. Free cash \\nflow is calculated from the cash flow from operating activities and investment activities. We also use the \\nindicator free cash flow before acquisitions, which goes beyond free cash flow and includes an adjustment \\nfor incoming and outgoing payments that are associated with shareholdings. \\nWe use the indicator working capital in order to assess the financial position. Working capital is essentially \\nthe difference between current assets – including in particular inventories and trade receivables – and \\ncurrent liabilities. Cash and cash equivalents, the positive and negative market values of derivative financial \\ninstruments and current finance and lease liabilities are not included in working capital. \\nBesides the above mentioned significant indicators, sustainability and creating stakeholder value is an \\nimportant aspect of PUMA’s overall business performance. Acting in a responsible manner and continuously \\nimproving PUMAs impacts on the environment and people are not only expected by our employees, \\nconsumers and investors but also supports our financial performance. Since many years, and in line with \\nour current 10FOR25 sustainability strategy, we use several indicators to assess PUMA’s performance \\nagainst environmental and social criteria. Those indicators relate to climate action, human rights (including \\noccupational health and safety) as well as circularity and are part of the performance bonus of our \\nleadership team globally. Since a large portion of PUMAs impact on the environment and people is created \\nin our supply chain, we also include supply chain specific sustainability performance indicators in our \\nannual reporting. For further details, please refer to the sustainability section of this report and our \\ncorporate website. \\nThe calculation of the financial control parameters that PUMA uses is defined as follows: \\nThe recognition of sales is based on the provisions of IFRS 15 Revenue from contracts with customers. \\nPUMA's gross profit is calculated as sales minus cost of sales. Cost of sales mainly comprise the carrying \\namounts of inventory that were recognised as expenses during the reporting period. The gross profit margin \\nis calculated as gross profit divided by sales. \\nPUMA's operating result (EBIT) is the sum of sales and royalty and commission income, minus cost of sales \\nand other operating income and expenses (OPEX). EBIT is defined as operating result, less depreciation and \\namortisation, provisions and impairment loss, before interest (= financial result) and before taxes. The \\nfinancial result includes interest income and interest expenses, currency conversion differences and the \\neffects from the net position of monetary items in connection with hyperinflation accounting. The EBIT \\nmargin is calculated as EBIT divided by sales. \\nPUMA's working capital is calculated based on the sum of current assets less the sum of current liabilities. \\nIn addition, cash and cash equivalents and positive and negative market values of derivative financial \\ninstruments are deducted. The market values of derivative financial instruments are recognised in the \\nbalance sheet in the items Other Current Assets and Other Current Liabilities not attributable to working \\ncapital. Current financial and lease liabilities are also not part of working capital. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n227 \\nWe also use the EBITDA indicator, which represents the operating result before interest (= financial result), \\ntaxes and depreciation and amortisation, to assess the results of operations. EBITDA is calculated based on \\nthe operating result (EBIT) adding depreciation and amortisation, which may also contain any incurred im-\\npairment expenses relating to non-current assets. The EBITDA margin is calculated as EBITDA divided by \\nsales. \\n \\nINFORMATION REGARDING THE NON-FINANCIAL REPORT \\nIn accordance with Sections 289b and 315b of the German Commercial Code (Handelsgesetzbuch – HGB), \\nwe are required to make a non-financial declaration for PUMA SE and the PUMA Group within the combined \\nmanagement report or present a non-financial report external to the combined management report, in \\nwhich we report on environmental, social and other non-financial aspects. PUMA has been publishing \\nsustainability reports since 2003 under the provisions of the Global Reporting Initiative (GRI) and since 2010 \\nhas published financial data and key sustainability indicators in a single report. In this context, we report the \\ninformation required under Sections 289b and 315b of the HGB in the sustainability chapter of our annual \\nreport. The non-financial report for the financial year 2023 is published together with the combined \\nmanagement report and can be accessed at the following location on our website: \\nhttps://about.PUMA.com/en/investor-relations/financial-reports \\n┌ \\nFurthermore, important sustainability information can always be found in the sustainability section on \\nPUMA's website: http://about.PUMA.com/en/sustainability \\n└ \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n228 \\nECONOMIC REPORT \\nGENERAL ECONOMIC CONDITIONS \\n \\nGLOBAL ECONOMY \\nAccording to the winter forecast of the Kiel Institute for the World Economy (Kiel Institut für Weltwirtschaft – \\nIfW Kiel) dated 13 December 2023, the global economy held up better than expected in view of the inflation \\nshock and the massive tightening of monetary policy in 2023, even if economic expansion was only \\nmoderate. Industrial production and world trade remained without momentum until the end of the year. The \\nexperts at IfW Kiel expect global gross domestic product (GDP) to have risen by a total of 3.1% for the past \\nfinancial year 2023. Major differences in economic momentum were recorded both in the advanced \\neconomies and in the emerging markets. With regard to China, IfW Kiel experts note that, by historical \\ncomparison, the pace of expansion is still low and that China has largely lost its role as the engine of global \\neconomic expansion. In addition, accelerated inflation in Argentina and Turkey had a negative impact on \\neconomic development. \\nSPORTING GOODS INDUSTRY \\nThe sporting goods industry was faced with various challenges in 2023, which contributed to a difficult \\nmarket environment. This was mainly due to the sharp rise in inflation, which led to a corresponding \\nnegative impact on consumer spending. In addition, excess inventory and sales-promoting measures were \\nunfavourable to industry development. \\nMajor sporting events in 2023, such as the Athletics World Championships in Hungary and the FIFA Women's \\nWorld Cup in Australia and New Zealand, had a positive effect on the sporting goods industry. To our \\nknowledge, sporting activity and the pursuit of an increasingly healthy and sustainable lifestyle continued to \\ngain in importance for an ever-increasing proportion of the world's population, following the COVID-19 \\npandemic. Among other things, this resulted in the increased popularity of athletic footwear and \\nleisure/athletic apparel as an integral part of everyday fashion (\\\"athleisure\\\"). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n229 \\nSALES DEVELOPMENT \\n \\nILLUSTRATION OF SALES DEVELOPMENT IN 2023 COMPARED TO THE OUTLOOK \\nIn its combined management report for 2022, PUMA forecast a currency-adjusted increase in sales in the \\nhigh single-digit percentage range for financial year 2023. Sales development was affected by the significant \\ndevaluation of the Argentine peso and the associated translation effects at the closing rate, which had an \\nextraordinary impact in the fourth quarter and on the full-year 2023. Due to the extent and timing of these \\ncurrency effects, we were unable to fully compensate for the overall negative impact at the end of the year. \\nNevertheless, sales development was largely in line with the outlook. More details on sales development in \\nthe financial year 2023 are provided below. \\nSALES \\nPUMA's sales in the reporting currency, the euro, increased by 1.6% to € 8,601.7 million in the financial year \\n2023 (previous year: € 8,465.1 million). Currency-adjusted sales increased by 6.6%. This allowed PUMA to \\nachieve record sales of € 8.6 billion in 2023, the year of the 75th anniversary of the company, despite the \\ndifficult market environment. \\n \\n↗ G.05 SALES (€ million) \\n \\nIn the footwear division, sales increased in the reporting currency, the euro, by 6.1% to € 4,583.4 million. \\nCurrency-adjusted sales increased by 12.4%. The footwear division continued to be the growth driver and the \\nstrongest growth was achieved in the Sportstyle, Teamsport and Basketball categories. The share of the \\nfootwear division in total sales rose from 51.0% in the previous year to 53.3% in 2023. \\nSales in the apparel division fell by 4.6% to € 2,763.0 million in the reporting currency, the euro. Adjusted for \\ncurrency effects, sales fell only slightly by 0.3%. Higher sales in the categories Teamsport and Running & \\nTraining were compared to lower sales in the Sportstyle and Motorsport categories. The share of the \\napparel division decreased to 32.1% of Group sales (previous year: 34.2%). \\nThe accessories division reported an increase in sales in the reporting currency, the euro, of 0.3% to \\n€ 1,255.3 million. This corresponds to a currency-adjusted sales growth of 3.1%. The growth in the \\nTeamsport category was partly offset by slightly lower sales with Cobra golf clubs. In 2023, the share of the \\naccessories division decreased to 14.6% of Group sales from 14.8% in the previous year. \\n5,502.2\\n5,234.4\\n6,805.4\\n8,465.1\\n8,601.7\\n2019\\n2020\\n2021\\n2022\\n2023\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n230 \\n↗ G.06 SALES BY PRODUCT DIVISIONS (€ million) \\n \\n \\nOWN RETAIL ACTIVITIES \\nPUMA's own retail activities include direct sales to our consumers (\\\"Direct-to-consumer business\\\"). This \\nincludes selling to our customers in PUMA's own retail stores, the so-called \\\"Full Price Stores\\\" and \\n\\\"Factory Outlets\\\". Our e-commerce business on our own online platforms and on the platforms of online \\nretailers, which we refer to as \\\"marketplaces\\\", is also part of the direct sales to our consumers. Our own \\nretail businesses ensure regional availability of PUMA products and the presentation of the PUMA brand in \\nan environment suitable to our brand positioning. \\nPUMA's direct-to-consumer sales increased by 17.5% currency-adjusted to € 2,133.0 million in the financial \\nyear 2023. This corresponds to a share of 24.8% of total sales (previous year: 23.1%). Adjusted for currency \\neffects, sales in PUMA's own full-price stores and factory outlets increased by 18.8% in 2023. In the e-\\ncommerce business, sales increased by 15.0% in 2023, adjusted for currency effects. The continued strong \\nsales growth in our DTC business was due to continued brand desirability, the opening of own retail stores \\nand their increase in productivity. \\n↗ G.07 DIRECT-TO-CONSUMER SALES \\n \\n881.1\\n892.7\\n1,124.5\\n1,251.0\\n1,255.3\\n2,068.7\\n1,974.1\\n2,517.3\\n2,896.3\\n2,763.0\\n2,552.5\\n2,367.6\\n3,163.6\\n4,317.9\\n4,583.4\\n2019\\n2020\\n2021\\n2022\\n2023\\nAccessories\\nApparel\\nFootwear\\n1,395.3\\n1,424.5\\n1,724.8\\n1,951.4\\n2,133.0\\n25.4%\\n27.2%\\n25.3%\\n23.1%\\n24.8%\\n2019\\n2020\\n2021\\n2022\\n2023\\nDirect-to-consumer sales in € million\\nin % of sales\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n231 \\nLICENSING BUSINESS \\nPUMA grants licenses to independent partners for various product divisions, such as watches, glasses, \\nsafety shoes, workwear and gaming accessories. In addition to design, development and manufacture, these \\ncompanies are also responsible for product distribution. Income from license agreements also includes \\nsome distribution licenses for different markets. PUMA's royalty and commission income increased by \\n14.0% to € 38.5 million in the financial year 2023 (previous year: € 33.8 million). The main reason for the \\nincrease was the granting of new licences in the golf and accessories segment. \\nREGIONAL DEVELOPMENT \\nIn the following explanation of the regional development of sales, the sales are allocated to the customers' \\nactual region (\\\"customer site\\\"). It is divided into three geographical regions (EMEA, Americas and \\nAsia/Pacific). \\nPUMA's sales in the reporting currency, the euro, increased by 1.6% in the financial year 2023. This \\ncorresponds to a currency-adjusted sales increase of 6.6% compared to the previous year. This currency-\\nadjusted growth resulted in particular from good sales performance in the EMEA and Asia/Pacific regions, \\nwhich both achieved double-digit growth rates. In contrast, the Americas region recorded a slight decrease \\nin sales. \\nIn the EMEA region, sales in the reporting currency, the euro, rose by 9.8% to € 3,418.4 million. Adjusted for \\ncurrency effects, this corresponds to an increase in sales of 13.4%. Almost all countries in the region, with \\nthe exception of Great Britain and Sweden, contributed to this development with sales growth. Particularly \\nstrong growth came from Germany, Spain, Italy and Turkey. In terms of Group sales, the EMEA region's \\nshare rose from 36.8% in the previous year to 39.7% in 2023. \\nWith regard to product divisions, sales from footwear recorded a currency-adjusted increase of 21.7%. \\nCurrency-adjusted sales of apparel increased by 8.2%. Currency-adjusted sales of accessories rose by 2.5%. \\n↗ G.08 EMEA SALES (€ million) \\n \\n \\n \\n2,001.4\\n1,982.9\\n2,531.7\\n3,113.8\\n3,418.4\\n2019\\n2020\\n2021\\n2022\\n2023\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n232 \\nIn the Americas region, sales in the reporting currency, the euro, decreased by 8.0% to € 3,389.9 million. The \\ndecline in sales in the reporting currency was impacted by negative exchange rate effects due to the strong \\ndevaluation of the Argentine peso against the euro. Currency-adjusted sales decreased by 2.4%. The \\ncurrency-adjusted sales decline was mainly due to a difficult macroeconomic environment, high inventory \\nlevels in the trade and PUMA's relative dependence on the off-price wholesale business in the USA. The \\nAmericas region's share of Group sales decreased from 43.5% in the previous year to 39.4% in 2023. \\nIn terms of product divisions, both footwear (+1.5% currency-adjusted) and accessories (+4.8% currency-\\nadjusted) recorded sales growth compared to the previous year. In contrast, currency-adjusted sales in the \\napparel division fell by 13.3%. \\n↗ G.09 AMERICAS SALES (€ million) \\n \\nIn the Asia/Pacific region, sales in the reporting currency, the euro, rose by 7.7% to € 1,793.4 million. Adjusted \\nfor currency effects, this corresponds to an increase in sales of 13.6%. While China, India and Singapore, \\namong others, recorded double-digit sales growth, sales declined in South Korea and Australia. The share of \\nthe Asia/Pacific region in Group sales increased from 19.7% in the previous year to 20.8% in 2023. \\nIn terms of product divisions, both footwear (+22.6% currency-adjusted) and apparel (+5.9% currency-\\nadjusted) recorded sales growth compared to the previous year. In contrast, currency-adjusted sales in the \\naccessories division fell by 1.4%. \\n↗ G.10 ASIA/PACIFIC SALES (€ million) \\n \\n \\n1,944.0\\n1,775.2\\n2,636.9\\n3,685.9\\n3,389.9\\n2019\\n2020\\n2021\\n2022\\n2023\\n1,556.9\\n1,476.3\\n1,636.8\\n1,665.3\\n1,793.4\\n2019\\n2020\\n2021\\n2022\\n2023\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n233 \\nRESULTS OF OPERATIONS \\n↗ T.01 INCOME STATEMENT \\n \\n2023 \\n2022 \\n \\n \\n€ million\\n%\\n€ million\\n%\\n+/-%\\nSales \\n8,601.7\\n100.0%\\n8,465.1 \\n100.0%\\n1.6% \\nCost of sales \\n-4,615.1\\n-53.7%\\n-4,562.3 \\n-53.9%\\n1.2% \\nGross profit \\n3,986.6\\n46.3%\\n3,902.7 \\n46.1%\\n2.1% \\nRoyalty and commission income \\n38.5\\n0.4%\\n33.8 \\n0.4%\\n14.0% \\nOther operating income and expenses \\n-3,403.5\\n-39.6%\\n-3,295.9 \\n-38.9%\\n3.3% \\nOperating Result (EBIT) \\n621.6\\n7.2%\\n640.6 \\n7.6%\\n-3.0% \\nFinancial result \\n-143.3\\n-1.7%\\n-88.9 \\n-1.1%\\n61.2% \\nEarnings before taxes (EBT) \\n478.3\\n5.6%\\n551.7 \\n6.5%\\n-13.3% \\nTaxes on income \\n-117.8\\n-1.4%\\n-127.4 \\n-1.5%\\n-7.5% \\n- Tax rate \\n24.6%\\n \\n23.1%\\n \\n \\nNet income attributable to non-controlling \\ninterests \\n-55.7\\n-0.6%\\n-70.9 \\n-0.8%\\n-21.4% \\nNet income \\n304.9\\n3.5%\\n353.5 \\n4.2%\\n-13.7% \\nWeighted average number of outstanding \\nshares (million shares) \\n149.85\\n \\n149.65\\n \\n0.1% \\nWeighted average number of outstanding \\nshares, diluted (million shares) \\n149.87\\n \\n149.66\\n \\n0.1% \\nEarnings per share (€) \\n2.03\\n \\n2.36 \\n \\n-14.0% \\nEarnings per share (€) - diluted \\n2.03\\n \\n2.36 \\n \\n-14.0% \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n234 \\nILLUSTRATION OF EARNINGS DEVELOPMENT IN 2023 COMPARED TO THE OUTLOOK \\nIn the outlook in the combined management report for 2022, PUMA forecast an operating result (EBIT) in the \\nrange between € 590 million and € 670 million for the financial year 2023 (2022: € 641 million). Thanks to \\ncontinued strong brand momentum, exciting product launches, strong partnerships along the value chain, \\nand supported by our operational flexibility, PUMA was able to fully achieve its forecast for operating result \\nfor the full-year 2023, despite the significant devaluation of the Argentine peso. \\nMore details on earnings development in the financial year under review are provided below. \\nGROSS PROFIT MARGIN \\nPUMA's gross profit in the financial year 2023 increased by 2.1% from € 3,902.7 million to € 3,986.6 million. \\nThe gross profit margin improved by 20 basis points from 46.1% to 46.3%. The increase was due to price \\nadjustments, a more favourable regional and distribution channel mix, and positive currency effects. In \\ncontrast, a discount-intensive market environment with higher sales-promoting measures, fluctuating \\nsourcing prices due to raw materials and fluctuating freight costs had a negative effect. \\nThe gross profit margin in the footwear division improved from 44.9% in the previous year to 45.4% in 2023. \\nThe gross profit margin for apparel increased from 47.3% to 47.8%. In contrast, the gross profit margin for \\naccessories fell from 47.4% to 46.6%. \\n↗ G.11 GROSS PROFIT/GROSS PROFIT MARGIN \\n \\n \\n \\n2,686.4\\n2,458.0\\n3,257.8\\n3,902.7\\n3,986.6\\n48.8%\\n47.0%\\n47.9%\\n46.1%\\n46.3%\\n2019\\n2020\\n2021\\n2022\\n2023\\nGross profit in € million\\nGross profit margin in %\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n235 \\nOTHER OPERATING INCOME AND EXPENSES \\nThe net expense of other operating income and expenses (OPEX) increased by 3.3% in financial year 2023 to \\n€ 3,403.5 million (from € 3,295.9 million in the previous year). The increase is due to sales-related \\ndistribution and other variable costs, the strong growth in our DTC sales channel and higher marketing \\ninvestments. This development was partially offset by operational leverage in other cost areas and \\nfavourable exchange rate effects. The cost ratio increased from 38.9% in the previous year to 39.6% in 2023. \\n↗ G.12 OPERATING EXPENSES (as a % of sales) \\n \\nWithin selling expenses, marketing/retail expenses increased by 4.1% to € 1,643.2 million, while the cost \\nratio was 19.1% of sales in 2023, compared with a cost ratio of 18.6% in the previous year. Other selling \\nexpenses, which mainly include sales-related costs and costs for warehousing and logistics, increased by \\n5.2% to € 1,155.8 million. The cost ratio of other selling expenses decreased to 13.4% of sales in 2023 \\ncompared to a cost ratio of 13.0% in the previous year. \\nResearch and development/product management expenses increased by 12.0% to € 171.5 million compared \\nto the previous year and the cost ratio rose slightly to 2.0%. Other operating income amounted to \\n€ 17.8 million in the past financial year and essentially includes income from the sale of fixed assets and \\nincome from the disposal of finance leases. General and administrative expenses fell by 3.2% to \\n€ 450.9 million in 2023. The cost ratio of general and administrative expenses improved to 5.2% of sales in \\n2023. Depreciation and amortisation is included in the relevant costs and total € 351.7 million (previous year: \\n€ 332.8 million). In addition, the respective costs include impairment expenses totalling € 5.7 million and \\ncorresponding reversals of impairment losses in the amount of € 11.9 million. \\n \\n \\n41.3%\\n43.3%\\n40.0%\\n38.9%\\n39.6%\\n2019\\n2020\\n2021\\n2022\\n2023\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n236 \\nRESULT BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTISATION (EBITDA) \\nThe result before interest (= financial result), taxes, depreciation and amortisation (including impairment \\nlosses and reversals of impairment losses) (EBITDA) decreased by 3.2% to € 967.1 million in financial year \\n2023 (from € 999.3 million in the previous year). The EBITDA margin decreased from 11.8% in the previous \\nyear to 11.2% in 2023. \\nOPERATING RESULT (EBIT) \\nIn the 2023 financial year, operating result decreased by 3.0% to € 621.6 million (from € 640.6 million in the \\nprevious year). Despite higher sales and an improved gross profit margin, the slightly stronger increase in \\nother operating income and expenses in comparison with sales led to this decline. The EBIT margin \\ndecreased from 7.6% in the previous year to 7.2% in 2023. \\n↗ G.13 OPERATING RESULT \\n \\n \\nFINANCIAL RESULT \\nThe financial result in 2023 decreased from a total of € -88.9 million in the previous year to € -143.3 million. \\nThis development is mainly due to the sharp increase in expenses from currency conversion differences \\ntotalling € -69.4 million in 2023, compared to just € - 2.2 million in the previous year, and also includes \\nvaluation losses in connection with the devaluation of the Argentine peso. The increase in interest expenses \\nin 2023 to a total of € -100.8 million (previous year: € - 54.4 million) also contributed significantly to this \\ndevelopment. In contrast, interest income increased to a total of € 37.8 million in 2023 (previous year: \\n€ 32.3 million) and expenses from hyperinflation effects fell to € - 23.7 million (previous year: \\n€ - 27.8 million). The remaining other financial income and expenses, which in particular include interest \\ncomponents in connection with forward exchange contracts (\\\"swap points\\\"), improved to € 12.8 million \\ncompared to € - 36.8 million in the previous year. \\nEARNINGS BEFORE TAXES (EBT) \\nIn the financial year 2023, PUMA generated earnings before taxes of € 478.3 million. This corresponds to a \\ndecrease of 13.3% compared to the previous year (€ 551.7 million). Tax expenses decreased to € 117.8 million, \\ncompared to € 127.4 million in the previous year. Accordingly, the tax rate rose from 23.1% to 24.6% in 2023. \\n440.2\\n209.2\\n557.1\\n640.6\\n621.6\\n8.0%\\n4.0%\\n8.2%\\n7.6%\\n7.2%\\n2019\\n2020\\n2021\\n2022\\n2023\\nOperating result in € million\\nas a % of sales\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n237 \\nNET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS \\nNet earnings attributable to non-controlling interests relate to companies in the North American market, in \\neach of which the same shareholder holds a minority stake. The earnings attributable to these interests \\ndecreased by 21.4% to € 55.7 million in the financial year 2023 (previous year: € 70.9 million). The companies \\naffected are PUMA United North America LLC, PUMA United Aviation North America LLC, PUMA United \\nCanada ULC and Janed Canada LLC. The business purpose of these companies is mainly the sale of socks, \\nbodywear, accessories and children's apparel in the North American market. \\nCONSOLIDATED NET INCOME \\nConsolidated net income decreased by 13.7% in financial year 2023 to € 304.9 million (from € 353.5 million). \\nDespite higher sales and an improved gross profit margin, the slightly stronger increase in other operating \\nincome and expenses compared to sales and the declining financial result led to this development. \\nEarnings per share and diluted earnings per share decreased from € 2.36 in the previous year to € 2.03 in \\nthe financial year 2023, in line with the development of the consolidated net income. \\n \\nDEVELOPMENT OF THE SEGMENTS \\nInternal management of the PUMA Group is carried out across seven segments (Europe, EEMEA, North \\nAmerica, Latin America, Greater China, Asia/Pacific (excluding Greater China) and stichd), based on the \\nregistered office of the respective subsidiaries. The differences from the presented regional development of \\nsales are essentially down to the separated \\\"stichd\\\" segment and India and Southeast Asia, which are \\nallocated to the EEMEA segment. \\nThe operating segments developed in line with the trends already discussed. Exceptions were the EEMEA \\nsegment, which showed double-digit growth rates due to the comparatively strong growth of sales and \\noperating result in several countries and especially in Turkey. In the North America segment, the difficult \\nmacroeconomic environment, high inventory levels in the trade and the relative dependence on wholesale \\nbusiness in the off-price segment led to a decline in sales and operating result. In the Latin America \\nsegment, operating result was only at the previous year's level, despite double-digit sales growth in Mexico, \\nChile and Brazil. This was mainly due to the negative currency exchange effects resulting from the sharp \\ndevaluation of the Argentine peso, which had a strong impact on profitability in the Latin America segment. \\nIn the Greater China segment, double-digit sales growth and a significant improvement in operating result \\nwere achieved due to the continued recovery and re-opening of the market. The stichd segment recorded a \\ndecline in operating result due to start-up costs in the Formula 1 business and due to expenses in \\nconnection with the implementation of SAP in 2023. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n238 \\nDIVIDENDS \\nThe positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose \\nthe distribution of a dividend of € 0.82 per share for the financial year 2023 at the Annual General Meeting on \\n22 May 2024. This corresponds to a payout ratio of 40.3% of consolidated net income. The higher payout ratio \\nresults from the strong improvement in free cash flow and reflects the underlying positive operating \\nbusiness development. In general, PUMA's dividend policy continues to provide for a payout of 25% to 35% of \\nconsolidated net income. The payment of the dividend is to take place in the days after the Annual General \\nMeeting at which the decision is made on the payout. In the previous year, a dividend of € 0.82 per share was \\npaid out (payout ratio for previous year: 34.7%). \\n↗ G.14 EARNINGS/DIVIDEND PER SHARE (in €) \\n \\n \\n \\n1.76\\n0.53\\n2.07\\n2.36\\n2.03\\n0.00\\n0.16\\n0.72\\n0.82\\n0.82\\n2019\\n2020\\n2021\\n2022\\n2023\\nEarnings per share\\nDividend per share\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n239 \\nNET ASSETS AND FINANCIAL POSITION \\n↗ T.02 BALANCE SHEET \\n \\n31 Dec. 2023 \\n31 Dec. 2022 \\n \\n \\n€ million\\n%\\n€ million\\n%\\n+/-%\\nCash and cash equivalents \\n552.9\\n8.3%\\n463.1 \\n6.8%\\n19.4% \\nInventories * \\n1,804.4\\n27.2%\\n2,245.1 \\n33.1%\\n-19.6% \\nTrade receivables * \\n1,118.4\\n16.8%\\n1,064.9 \\n15.7%\\n5.0% \\nOther current assets * \\n385.6\\n5.8%\\n304.1 \\n4.5%\\n26.8% \\nOther current assets \\n69.8\\n1.1%\\n123.2 \\n1.8%\\n-43.4% \\nCurrent assets \\n3,931.1\\n59.2%\\n4,200.4 \\n62.0%\\n-6.4% \\n \\n \\n \\n \\n \\n \\nDeferred tax assets \\n296.1\\n4.5%\\n295.0 \\n4.4%\\n0.3% \\nRight-of-use assets \\n1,087.7\\n16.4%\\n1,111.3 \\n16.4%\\n-2.1% \\nOther non-current assets \\n1,325.6\\n20.0%\\n1,166.0 \\n17.2%\\n13.7% \\nNon-current assets \\n2,709.3\\n40.8%\\n2,572.3 \\n38.0%\\n5.3% \\nTotal assets \\n6,640.4\\n100.0%\\n6,772.7 \\n100.0%\\n-2.0% \\nCurrent borrowings \\n145.9\\n2.2%\\n75.9 \\n1.1%\\n92.3% \\nTrade payables * \\n1,499.8\\n22.6%\\n1,734.9 \\n25.6%\\n-13.6% \\nOther current liabilities * \\n631.3\\n9.5%\\n792.3 \\n11.7%\\n-20.3% \\nCurrent lease liabilities \\n212.4\\n3.2%\\n200.2 \\n3.0%\\n6.1% \\nOther current liabilities \\n47.7\\n0.7%\\n39.7 \\n0.6%\\n20.1% \\nCurrent liabilities \\n2,537.2\\n38.2%\\n2,843.0 \\n42.0%\\n-10.8% \\n \\n \\n \\n \\n \\n \\nNon-current borrowings \\n426.1\\n6.4%\\n251.5 \\n3.7%\\n69.4% \\nDeferred tax liabilities \\n12.4\\n0.2%\\n42.0 \\n0.6%\\n-70.5% \\nPension provisions \\n22.5\\n0.3%\\n22.4 \\n0.3%\\n0.7% \\nNon-current lease liabilities \\n1,020.0\\n15.4%\\n1,030.3 \\n15.2%\\n-1.0% \\nOther non-current liabilities \\n40.0\\n0.6%\\n44.7 \\n0.7%\\n-10.5% \\nNon-current liabilities \\n1,520.9\\n22.9%\\n1,390.9 \\n20.5%\\n9.4% \\nEquity \\n2,582.3\\n38.9%\\n2,538.8 \\n37.5%\\n1.7% \\nTotal liabilities and equity \\n6,640.4\\n100.0%\\n6,772.7 \\n100.0%\\n-2.0% \\n \\n \\n \\n \\n \\n \\nWorking Capital \\n1,177.3\\n \\n1,086.8\\n \\n8.3%\\n- in % of sales \\n13.7%\\n \\n12.8%\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n* included in working capital \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n240 \\nEQUITY RATIO \\nPUMA has a very solid capital base. As of the balance sheet date, the equity of the PUMA Group increased by \\n1.7%, from € 2,538.8 million in the previous year to € 2,582.3 million as of 31 December 2023. Although the \\npositive consolidated income contributed to the increase in Group equity, there was a negative impact of \\n€ - 85.9 million from the other comprehensive income that is directly recorded in equity, mainly due to \\nnegative currency conversion differences. The balance sheet total decreased slightly by 2.0% as at the \\nbalance sheet date, to € 6,640.4 million (from € 6,772.7 million in the previous year). Overall, this resulted in \\nan increase in the equity ratio of 1.4 percentage points from 37.5% in the previous year to 38.9% as at \\n31 December 2023. \\n↗ G.15 BALANCE SHEET TOTAL/EQUITY RATIO \\n \\n \\nWORKING CAPITAL \\nAs of the balance sheet date, working capital increased by 8.3% from € 1,086.8 million in the previous year to \\n€ 1,177.3 million as of 31 December 2023. In relation to sales in the respective financial year, this corresponds \\nto an increase in the working capital ratio from 12.8% in the previous year to 13.7% at the end of 2023. This \\ndevelopment was mainly attributable to the decline of trade payables due to the adjusted sourcing volumes \\nin 2023 and the decrease in other current liabilities and provisions included in working capital. In addition, \\nhigher trade receivables and higher other current assets attributable to working capital contributed to the \\nincrease. In contrast, the reduction in inventories had the opposite effect. \\nOn the assets side, inventories fell by 19.6% as at the balance sheet date, to € 1,804.4 million (from \\n€ 2,245.1 million). This development shows that our previous measures to reduce inventories to an \\nappropriate level were successful. Trade receivables increased due to longer customary payment terms by \\n5.0% to € 1,118.4 million (from € 1,064.9 million) as at the balance sheet date. Other current assets, which are \\nattributable to working capital rose by 26.8% to € 385.6 million (from € 304.1 million), primarily due to higher \\nadvance payments and tax refund claims. \\nOn the liabilities side, trade payables decreased by 13.6% to € 1,499.8 million (from € 1,734.9 million) due to \\nthe adjusted sourcing volumes. The other current liabilities and provisions, which are contained in working \\ncapital and include, among other things, customer bonus and warranty provisions, decreased by 20.3% to \\n€ 631.3 million (from € 792.3 million). \\n4,378.2\\n4,684.1\\n5,728.3\\n6,772.7\\n6,640.4\\n43.9%\\n37.7%\\n39.8%\\n37.5%\\n38.9%\\n2019\\n2020\\n2021\\n2022\\n2023\\nTotal assets in € million\\nEquity ratio in %\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n241 \\n↗ G.16 WORKING CAPITAL \\n \\n \\nOTHER ASSETS AND OTHER LIABILITIES \\nOther current assets outside of working capital include, in particular, the positive market value of derivative \\nfinancial instruments and current receivables from leases. Overall, other current assets outside of working \\ncapital decreased to € 69.8 million, compared to € 123.3 million in the previous year. \\nRight-of-use assets fell slightly by 2.1% to € 1,087.7 million (from € 1,111.3 million in the previous year). The \\ndecline was due to the ongoing depreciation of right-of-use assets and the effects of subleasing. In contrast, \\nthe additions to right-of-use assets in 2023 were mainly related to newly opened retail stores and extensions \\nor contract amendments to existing retail stores as well as the opening of new warehouses or the expansion \\nof existing warehouses. The right-of-use assets referred to own retail stores totalling € 464.2 million \\n(previous year: € 430.9 million), warehouses and offices totalling € 557.7 million (previous year: \\n€ 613.1 million) and other lease items, mainly technical equipment and machines and motor vehicles, \\ntotalling € 65.7 million as of 31 December 2023 (previous year: € 67.3 million). The associated current and \\nnon-current leasing liabilities remained virtually unchanged overall. \\nOther non-current assets, which mainly comprise intangible assets and property, plant and equipment, \\nincreased by 13.7% to € 1,325.6 million (from € 1,166.0 million) in the past financial year. The increase is \\nlinked to the expansion of investment activities in 2023, following lower investments in non-current assets in \\nprevious years. In addition, the acquisition of investment property totaling € 21.1 million contributed to the \\nincrease. \\nAs at 31 December 2023, current borrowings include the current proportion of promissory note loans in the \\namount of € 125.0 million (previous year: € 60.0 million) and short-term bank liabilities amounting to \\n€ 20.9 million (previous year: € 15.9 million). \\nOther current liabilities, which exclusively include the negative market value of derivative financial \\ninstruments, increased from € 39.7 million to € 47.7 million compared to the previous year. \\nNon-current borrowings include promissory note loans totalling € 426.1 million (previous year: \\n€ 251.5 million). \\nPension provisions remained almost unchanged at € 22.5 million (previous year: € 22.4 million). \\n549.4\\n465.8\\n727.9\\n1,086.8\\n1,177.3\\n10.0%\\n8.9%\\n10.7%\\n12.8%\\n13.7%\\n2019\\n2020\\n2021\\n2022\\n2023\\nWorking capital in € million\\nWorking capital as a % of sales\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n242 \\nOther non-current liabilities amounted to € 40.0 million as at the balance sheet date (previous year: \\n€ 44.7 million). \\n \\nCASH FLOW \\n↗ T.03 CASH FLOW STATEMENT \\n \\n1-12/2023\\n1-12/2022\\n \\n \\n€ million\\n€ million\\n+/-%\\nEarnings before taxes (EBT) \\n478.3 \\n551.7 \\n-13.3% \\nFinancial result and non-cash effected expenses and income \\n485.7 \\n367.2 \\n32.3% \\nGross cash flow \\n964.1 \\n918.9 \\n4.9% \\nChange in current assets, net \\n-129.2 \\n-343.3 \\n-62.4% \\nPayments for taxes on income \\n-181.3 \\n-157.4 \\n15.2% \\nNet cash from operating activities \\n653.6 \\n418.3 \\n56.3% \\nPayments for investing in fixed assets \\n-300.4 \\n-263.6 \\n13.9% \\nOther investing and divestment activities incl. interest received \\n15.8 \\n22.9 \\n-31.1% \\nNet cash used in investing activities \\n-284.6 \\n-240.8 \\n18.2% \\nFree cash flow \\n369.0 \\n177.5 \\n107.9% \\nFree cash flow (before acquisitions) \\n369.0 \\n177.5 \\n107.9% \\nDividend payments to shareholders of PUMA SE \\n-122.8 \\n-107.7 \\n14.0% \\nDividend payments to non-controlling interests \\n-92.4 \\n-73.3 \\n26.2% \\nProceeds from borrowings \\n299.6 \\n17.9 \\n1571.2% \\nCash repayments of borrowings \\n-59.1 \\n-69.5 \\n-14.9% \\nRepayments of lease liabilities \\n-208.0 \\n-190.0 \\n9.4% \\nInterest paid \\n-94.3 \\n-53.8 \\n75.3% \\nNet cash used in financing activities \\n-277.1 \\n-476.4 \\n-41.8% \\nExchange rate-related changes in cash and cash equivalents \\n-2.1 \\n4.4 \\n-146.8% \\nChanges in cash and cash equivalents \\n89.8 \\n-294.4 \\n-130.5% \\nCash and cash equivalents at the beginning of the financial year \\n463.1 \\n757.5 \\n-38.9% \\nCash and cash equivalents at the end of the financial year \\n552.9\\n463.1 \\n19.4% \\n \\n \\n \\n \\n \\nNET CASH FROM OPERATING ACTIVITIES \\nGross cash flow increased by 4.9% to € 964.1 million in financial year 2023 (from € 918.9 million in the \\nprevious year). This development was due to the increase in non-cash adjustments relating to the financial \\nresult and other non-cash expenses and income by 32.3% to € 485.7 million. In contrast, earnings before \\ntaxes decreased by 13.3% to € 478.3 million. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n243 \\n↗ G.17 GROSS CASH FLOW (€ million) \\n \\n \\nAs a result of the smaller increase in working capital compared to the previous year, there was a lower cash \\noutflow from the change in net working capital* of € - 129.2 million in financial year 2023, compared to a \\ncash outflow of € - 343.3 million in the previous year. The cash outflow from payments for income taxes \\nincreased from € - 157.4 million in the previous year to € - 181.3 million in financial year 2023. On balance, \\ndue to the improvement in gross cash flow and the lower cash outflows in connection with working capital, \\nthere was a significant improvement in cash inflow from operating activities, which rose by 56.3% to \\n€ 653.6 million (from € 418.3 million). \\nNET CASH USED IN INVESTING ACTIVITIES \\nIn the financial year 2023, cash outflow from investment activities increased from a total of € 240.8 million to \\n€ 284.6 million. The investments in fixed assets included in this figure increased from € 263.6 million in the \\nprevious year to € 300.4 million in 2023 in line with our investment planning. The increase mainly related to \\ninvestments in our own retail stores, in our logistics infrastructure and in investment properties. In addition, \\ninvestments in the modernisation of the IT infrastructure continued to be made. The increase in capital \\nexpenditures relates in particular to the North America and Latin America segments and the central area, \\nwhich is not allocated to the business segments. \\n \\n \\n \\n* Net current assets include working capital line items plus current assets and liabilities, which are not part of the working \\ncapital calculation. Current lease liabilities are not part of the net current assets. \\n \\n704.8\\n522.8\\n821.2\\n918.9\\n964.1\\n2019\\n2020\\n2021\\n2022\\n2023\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n244 \\nFREE CASH FLOW BEFORE ACQUISITIONS \\nThe free cash flow before acquisitions is the balance of the cash inflows and outflows from operating and \\ninvesting activities. In addition, an adjustment is made for incoming and outgoing payments that relate to \\nthe purchase or sale of shareholdings, where applicable. No acquisitions or disposals of investments were \\nmade in 2022 and 2023. \\nFree cash flow before acquisitions improved from € 177.5 million in the previous year to € 369.0 million in the \\nfinancial year 2023. Free cash flow before acquisitions was 4.3% of sales compared to 2.1% in the previous year. \\n↗ G.18 FREE CASH FLOW (BEFORE ACQUISITIONS) (€ million) \\n \\n \\nNET CASH USED IN FINANCING ACTIVITIES \\nThe net cash used in financing activities decreased overall from a cash outflow of € 476.4 million in the \\nprevious year to a cash outflow of € 277.1 million in 2023. The decline in cash outflow was mainly due to \\nincreased proceeds from taking on financial borrowings. \\nA dividend payment of € 122.8 million was distributed to the shareholders of PUMA SE for the financial year \\n2022. In the previous year, the dividend payment was € 107.7 million. The net cash used in financing activities \\nalso included payouts to non-controlling interests totalling € 92.4 million in 2023 (previous year: \\n€ 73.3 million). Cash inflows from borrowings amounted to € 299.6 million, compared with cash inflows of \\n€ 17.9 million in the previous year. In the financial year 2023, payments made for the repayment of financial \\nborrowings totalled € 59.1 million (previous year: € 69.5 million). The cash outflows for the repayment of \\nleasing liabilities and related interest expenses included in the cash outflow from financing activities \\nincreased from a total of € 228.7 million in the previous year to € 254.8 million in 2023. \\nAs of 31 December 2023, PUMA had cash and cash equivalents of € 552.9 million, an increase of 19.4% \\ncompared with the previous year (€ 463.1 million). The PUMA Group also had credit lines totalling \\n€ 1,552.8 million as of 31 December 2023 (previous year: € 1,271.0 million). Unutilised credit lines amounted \\nto € 986.1 million as at the balance sheet date, compared to € 943.7 million in the previous year. \\n \\n \\n331.2\\n276.0\\n276.2\\n177.5\\n369.0\\n2019\\n2020\\n2021\\n2022\\n2023\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n245 \\nSTATEMENT REGARDING THE BUSINESS DEVELOPMENT AND THE OVERALL \\nSITUATION OF THE GROUP \\nIn financial year 2023, we were confronted with an increasingly difficult geopolitical and macroeconomic \\nmarket environment. The conflict in the Middle East, the war in Ukraine, persistent inflation and risks of \\nrecession had a negative impact on the consumer sentiment and led to volatile retail demand. We therefore \\nconsidered 2023 to be a transitional year. In 2023, we continued to focus on overcoming the short-term \\nchallenges without compromising the medium and long-term success of PUMA. Accordingly, we prioritised \\nsales growth and increasing market share over short-term profitability optimisation. Despite the difficult \\nmarket environment, we were able to further increase PUMA's sales based on our operating flexibility. In \\nthe past financial year, we were also able to fully achieve our target in terms of operating result. \\nOur focus on the PUMA family is an important cornerstone of our corporate strategy. We want to offer our \\nemployees an attractive working environment and diversity plays an important role in our corporate culture. \\nIn 2023, PUMA received multiple awards for this successful strategy, including the \\\"Top Employer Award\\\" for \\n24 PUMA subsidiaries in the Europe, Asia/Pacific and Latin and North America regions. We can therefore \\ncontinue to call ourselves a \\\"Global Top Employer\\\". We were also named one of the \\\"World's Best \\nEmployers\\\" by Forbes and a \\\"Leader in Diversity\\\" by the Financial Times, and awarded the \\\"Great Place to \\nWork\\\" seal in numerous countries. We were able to further optimise our processes by upgrading the \\nlogistics centres in our main markets, and by expanding existing warehouses and opening new ones. We \\nalso invested in improving our IT infrastructure, product development and ERP systems. \\nWe were able to achieve currency-adjusted sales growth of 6.6% in the financial year 2023. Sales \\ndevelopment was affected by the significant devaluation of the Argentine peso, which had an extraordinary \\nimpact in the fourth quarter and on the full-year 2023. Due to the extent and timing of these currency \\neffects, we were unable to fully compensate for all of the negative impacts at the end of the year. \\nNevertheless, sales development was mainly in the high single-digit percentage range, in line with the \\noutlook for currency-adjusted sales growth. In addition to sales growth, the gross profit margin improved. \\nHowever, these positive effects were offset by the slightly stronger increase in other operating income and \\nexpenses compared to sales. \\nOperating result (EBIT) of € 621.6 million in the past financial year was in line with our forecast of a range \\nbetween € 590 million and € 670 million. Despite the significant devaluation of the Argentine peso, we have \\ntherefore fully achieved our target in terms of operating result in the past financial year. The devaluation of \\nthe Argentine peso had a particularly negative effect on the financial result. Because of this, consolidated \\nnet income amounted to € 304.9 million compared to € 353.5 million in the previous year. This corresponds \\nto a decrease of 13.7%. Earnings per share therefore decreased from € 2.36 in the previous year to € 2.03. \\nUnder the given circumstances of a challenging macroeconomic environment worldwide and the \\nexceptional devaluation of the Argentine peso, we are very satisfied with the achievement of objectives in \\nfinancial year 2023. We believe that, despite the exceptional devaluation of the Argentine peso, the business \\ndevelopment of PUMA in 2023 reflects strong underlying operational development and strict cost discipline. \\nWith regard to the consolidated balance sheet, we believe that PUMA continues to have a very solid capital \\nbase. As of the balance sheet date, the PUMA Group's equity amounted to nearly € 2.6 billion and the equity \\nratio was 38.9%. \\nOur measures to right-size inventories to an appropriate level contributed to limiting the increase in our \\nworking capital in 2023. This is also reflected in the improvement in the cash flow from operating activities \\nand free cash flow. Our cash and cash equivalents amounted to € 552.9 million as of the balance sheet date. \\nIn addition, the PUMA Group has unutilised credit lines totalling € 986.1 million at its disposal. \\nConsequently, the net assets, financial position and results of operations of the PUMA Group is overall very \\nsolid at the time the combined management report was prepared. This enables the Management Board and \\nthe Supervisory Board to propose to the Annual General Meeting on 22 May 2024 a dividend of € 0.82 per \\nshare for the financial year 2023. This corresponds to a payout ratio of 40.3% in relation to the consolidated \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n246 \\nnet income according to IFRS. The higher payout ratio results from the strong improvement in free cash \\nflow and reflects the underlying positive operating business development. In general, PUMA's dividend \\npolicy continues to provide for a payout of 25% to 35% of consolidated net income. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n247 \\nCOMMENTS ON THE FINANCIAL STATEMENTS OF \\nPUMA SE IN ACCORDANCE WITH THE GERMAN \\nCOMMERCIAL CODE (HGB) \\nThe annual financial statements of PUMA SE are prepared in accordance with the rules of the German \\nCommercial Code (German GAAP, HGB), taking into account the SEAG (German SE Implementation Act) and \\nthe German Stock Corporation Act (AktG). PUMA SE is the parent company of the PUMA Group. PUMA SE's \\nresults are to a large extent influenced by the directly and indirectly held subsidiaries and shareholdings. \\nThe business development of PUMA SE is essentially subject to the same risks and opportunities as the \\nPUMA Group. In addition, the management of earnings before taxes (EBT) is affected by changes in the \\nfinancial result. \\nPUMA SE is responsible for wholesale business in the DACH area, consisting of the home market of \\nGermany, Austria, and Switzerland. Furthermore, PUMA SE is also responsible for pan-European \\ndistribution for individual key accounts and for sourcing products from European production countries, as \\nwell as global licensing management. In addition, PUMA SE acts as a holding company within the PUMA \\nGroup and is as such responsible for international product development, merchandising, international \\nmarketing, the global areas of finance, operations and PUMA's strategic direction. \\n \\nRESULTS OF OPERATIONS \\n↗ T.04 INCOME STATEMENT (GERMAN GAAP, HGB) \\n \\n2023 \\n2022 \\n \\n \\n€ million\\n%\\n€ million\\n%\\n+/- %\\nSales \\n1,243.7\\n100.0%\\n1,151.9\\n100.0%\\n8.0%\\nOther operating income \\n83.7\\n6.7%\\n84.0\\n7.3%\\n-0.4%\\nCost of sales \\n-389.5\\n-31.3%\\n-316.4\\n-27.5%\\n23.1%\\nPersonnel expenses \\n-130.8\\n-10.5%\\n-120.2\\n-10.4%\\n8.8%\\nDepreciation \\n-36.1\\n-2.9%\\n-36.8\\n-3.2%\\n-2.0%\\nOther operating expenses \\n-898.8\\n-72.3%\\n-816.3\\n-70.9%\\n10.1%\\nTotal expenses \\n-1,455.2\\n-117.0%\\n-1,289.7\\n-112.0%\\n12.8%\\nFinancial result \\n258.8\\n20.8%\\n189.5\\n16.5%\\n36.6%\\nIncome before Tax \\n131.0\\n10.5%\\n135.8\\n11.8%\\n-3.5%\\nIncome tax \\n-21.2\\n-1.7%\\n-18.8\\n-1.6%\\n12.9%\\nNet income \\n109.8\\n8.8%\\n117.0\\n10.2%\\n-6.2%\\n \\n \\n \\n \\n \\n \\n \\nIn the financial year 2023, sales increased by a total of 8.0% to € 1,243.7 million. The increase resulted both \\nfrom higher revenues from product sales and from higher commission income in the context of licence \\nmanagement. Revenues from PUMA SE product sales rose by 15.8% to € 589.4 million (previous year: \\n€ 508.9 million). Royalty and commission income included in sales increased by 1.7% to € 599.3 million \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n248 \\n(previous year: € 589.1 million). Other sales, which mainly consisted of recharges of costs to affiliated \\ncompanies, totalled € 55.0 million in 2023 (previous year: € 53.9 million). \\nOther operating income amounted to € 83.7 million in 2023 (previous year: € 84.0 million) and includes, in \\nparticular, realised and unrealised gains from currency conversion related to the measurement of \\nreceivables and liabilities in foreign currencies at the balance sheet date. \\nThe total expenditure from material expenses, personnel expenses, depreciation and other operating \\nexpenses increased by 12.8% to € 1,455.2 million compared to the previous year (previous year: a total of \\n€ 1,289.7 million). The increase in material expenses compared to the previous year was mainly due to the \\nincrease in sales. The disproportionate growth in material expenses in comparison with sales resulted from \\nintra-group sales of goods to PUMA Benelux, which were carried out without a surcharge. Personnel \\nexpenses increased due to a higher number of employees. Other operating expenses increased compared \\nwith the previous year, mainly due to increased administrative, marketing and sales expenses. \\nThe financial result increased, compared to the previous year, by 36.6% to € 258.8 million. The increase was \\nmainly due to higher profit transfer from affiliated companies. The interest result and the income from \\ndividends from investments in affiliated companies fell slightly. In addition, the investment in Borussia \\nDortmund GmbH & Co. KGaA (BVB), Dortmund, was written down in the financial year due to an impairment \\nof € 0.5 million, which is expected to be permanent. \\nThe increase in sales was offset by the increase in expenses, which is why earnings before income taxes \\nfell by 3.5% to € 131.0 million in 2023 (from € 135.8 million in the previous year). Taxes on income amounted \\nto € 21.2 million (previous year: € 18.8 million). Accordingly, PUMA SE's net income under the German \\nCommercial Code (German GAAP, HGB) decreased by 6.2% to € 109.8 million in the financial year 2023 \\n(previous year: € 117.0 million). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n249 \\nNET ASSETS \\n↗ T.05 BALANCE SHEET (GERMAN GAAP, HGB) \\n \\n31.12.2023 \\n31.12.2022 \\n \\n \\n€ million\\n%\\n€ million\\n%\\n+/- %\\nFixed Assets \\n1,648.9\\n63.3%\\n1,100.3 \\n43.7%\\n49.9%\\nInventory \\n85.7\\n3.3%\\n115.2 \\n4.6%\\n-25.6%\\nReceivables and other current assets \\n680.9\\n26.1%\\n1,177.8 \\n46.8%\\n-42.2%\\nCash and cash equivalents \\n165.8\\n6.4%\\n96.5 \\n3.8%\\n71.8%\\nCurrent Assets \\n932.4\\n35.8%\\n1,389.5 \\n55.2%\\n-32.9%\\nOthers \\n23.7\\n0.9%\\n25.2 \\n1.0%\\n-5.9%\\nTotal Assets \\n2,605.0\\n100.0%\\n2,515.1 \\n100.0%\\n3.6%\\nEquity \\n925.8\\n35.5%\\n933.8 \\n37.1%\\n-0.9%\\nAccruals/Provision \\n123.7\\n4.7%\\n141.9 \\n5.6%\\n-12.8%\\nLiabilities \\n1,555.0\\n59.7%\\n1,438.9 \\n57.2%\\n8.1%\\nOthers \\n0.5\\n0.0%\\n0.5 \\n0.0%\\n0.0%\\nTotal Equity & Liabilities \\n2,605.0\\n100.0%\\n2,515.1 \\n100.0%\\n3.6%\\n \\n \\n \\n \\n \\n \\n \\nOverall, fixed assets increased by 49.9% to € 1,648.9 million in 2023. The increase is mainly the result of the \\nincrease in shareholdings in the amount of € 521.9 million due to capital contributions to PUMA Sprint \\nGmbH, Germany, as well as further investments in IT. \\nThe decline in inventories of current assets by 25.6% to € 85.7 million was mainly due to more conservative \\npurchasing behaviour, especially at the end of the year. The consolidation of inventories for Central Europe, \\nincluding Benelux, and the associated improvement in the management of purchases and sales supported \\nthe positive development of inventories. Receivables and other assets decreased by a total of 42.2% \\ncompared with the previous year to € 680.9 million. In particular, lower receivables from affiliated \\ncompanies contributed to this development, which resulted in particular from the capital contribution. Cash \\nand cash equivalents increased by 71.8% to € 165.8 million compared to the previous year, due to the cash \\ninflow from financing and investing activities. \\nOn the liabilities side, equity fell slightly by 0.9% to € 925.8 million in 2023. In combination with the increase \\nof the balance sheet total due to higher liabilities, this led to a decline in the equity ratio, which was 35.5% \\nas at the balance sheet date of 31 December 2023 compared to 37.1% in the previous year. \\nProvisions decreased by 12.8% compared to the previous year to € 123.7 million. This development was \\nmainly due to lower provisions for outstanding invoices. Liabilities increased from € 1,438.9 million in the \\nprevious year to € 1,555.0 million as of 31 December 2023. This increase primarily resulted from the \\nincreased liabilities to banks due to the taking out of a promissory note loan and, in contrast, lower \\nliabilities to affiliated companies. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n250 \\nFINANCIAL POSITION \\n↗ T.06 CASH FLOW STATEMENT (GERMAN GAAP, HGB) \\n \\n2023\\n2022\\n \\n \\n€ million\\n€ million\\n+/- %\\nCash flow used in/ from operating activities \\n-92.6\\n4.9\\n-\\nCash flow from/ used in investing activities \\n66.3\\n-441.2\\n-\\nFree Cash Flow \\n-26.3\\n-436.3\\n-94.0%\\nCash flow from financing activities \\n95.6\\n134.0\\n-28.7%\\nChange in cash and cash equivalents \\n69.3\\n-302.3\\n>-100%\\nCash and cash equivalents at beginning of financial year \\n96.5\\n398.8\\n-75.8%\\nCash and cash equivalents at year-end \\n165.8\\n96.5\\n71.8%\\n \\n \\n \\n \\n \\nIn financial year 2023, cash outflow from operating activities amounted to € 92.6 million, compared to a \\ncash inflow of € 4.9 million in the previous year. This development is mainly due to the decrease of \\nreceivables from affiliated companies. In contrast, the reduction in inventories had a positive effect. \\nThe cash inflow from investing activities in 2023 is mainly due to the reduction in cash pool and loan \\nreceivables from affiliated companies. These are offset by cash outflows from investments in fixed assets. \\nCash flow from financing activities showed a total cash inflow of € 95.6 million in 2023 (previous year: \\n€ 134.0 million). The cash inflow primarily resulted from the taking out of promissory note loans. In contrast, \\nreduced liabilities to affiliated companies and the payment of dividends to PUMA SE shareholders for \\nfinancial year 2022 in the amount of € 122.8 million led to a cash outflow. \\n \\nOUTLOOK \\nIn PUMA SE's financial statements under German Commercial Code (German GAAP, HGB), we expect an \\nincrease in sales in the mid single-digit percentage range for the financial year 2024. Assuming dividends \\nfrom investments in affiliated companies at the previous year's level, we expect earnings before tax for the \\nfinancial year 2024 to be at the previous year's level. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n251 \\nINFORMATION CONCERNING TAKEOVERS \\nThe following information, valid 31 December 2023, is presented in accordance with Art. 9 p. 1 c) (ii) of the SE \\nRegulation in conjunction with Sections 289a, 315a German Commercial Code (HGB). Details under Sections \\n289a, 315a HGB which do not apply at PUMA SE are not mentioned. \\nComposition of the subscribed capital (Sections 289a [1][1], 315a [1][1] HGB)) \\nOn the balance sheet date, subscribed capital totaled € 150,824,640.00 and was divided into 150,824,640 no-\\npar value shares with a proportional amount in the statutory capital of € 1.00 per share. As of the balance \\nsheet date, the Company held 980,096 treasury shares. \\nShareholdings exceeding 10% of the voting rights (Sections 289a [1][3], 315a [1][3] HGB) \\nAs of 31 December 2023, there was one shareholding in PUMA SE that exceeded 10% of the voting rights. It \\nwas held by the Pinault family via several companies controlled by them (ranked by size of stake held by the \\nPinault family: Financière Pinault S.C.A., Artémis S.A.S. and Kering S.A.). The shareholding of Kering S.A. in \\nPUMA SE amounted to 1.47% of the share capital on 18 September 2023. The shareholding of Artémis S.A.S. \\nand Kering S.A. together amounted to 29.99% of the share capital on18 September 2023. \\nStatutory provisions and regulations of the Articles of Association on the appointment and \\ndismissal of the members of the Management Board and on amendments to the Articles of Association \\n(Sections 289a [1][6], 315a [1][6] HGB) \\nRegarding the appointment and dismissal of the members of the Management Board, reference is made to \\nthe applicable statutory requirements of Section 84 German Stock Corporation Act (AktG). Moreover, Section \\n7[1] of PUMA SE’s Articles of Association stipulates that Management Board shall consist of two members in \\nthe minimum; the Supervisory Board determines the number of members in the Management Board. The \\nSupervisory Board may appoint deputy members of the Management Board and appoint a member of the \\nManagement Board as chairperson of the Management Board. Members of the Management Board may be \\ndismissed only for good cause, within the meaning of Section 84[3] of the AktG or if the employment \\nagreement is terminated, for which in each case a resolution must be adopted by the Supervisory Board \\nwith a simple majority of the votes cast. \\nAmendments to the Articles of Association of the Company require a resolution by the Annual General \\nMeeting. Resolutions of the Annual General Meeting require a majority according to Art. 59 SE Regulation \\nand Sections 133[1], 179 [2] [1] AktG (i.e. a simple majority of votes and a majority of at least three quarters of \\nthe share capital represented at the time the resolution is adopted). The Company has not made use of \\nSection 51 SEAG. \\nAuthority of the Management Board to issue or repurchase shares (Sections 289a [1][7], 315a [1][7] HGB) \\nThe authority of the Management Board to issue shares result from Section 4 of the Articles of Association \\nand from the statutory provisions: \\nAUTHORISED CAPITAL \\nBy resolution of the Annual General Meeting on 5 May 2021, the Management Board is authorised, with \\napproval of the Supervisory Board, to increase the share capital of the Company by up to EUR 30,000,000.00 \\nby issuing, once or several times, new no par-value bearer shares against contributions in cash and/or kind \\nuntil 4 May 2026 (Authorised Capital 2021). In case of capital increases against contributions in cash, the new \\nshares may be acquired by one or several banks, designated by the Management Board, subject to the \\nobligation to offer them to the shareholders for subscription (indirect pre-emption right). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n252 \\nThe shareholders shall generally be entitled to pre-emption rights. However, the Management Board shall \\nbe authorised with approval of the Supervisory Board, to partially or completely exclude pre-emption rights \\n• to avoid peak amounts; \\n• in case of capital increases against contributions in cash if the pro-rated amount of the share capital \\nattributable to the new shares for which pre-emption rights have been excluded does not exceed 10% of \\nthe share capital and the issue price of the newly created shares is not significantly lower than the \\nrelevant exchange price for already listed shares of the same class, Section 186 (3) sentence 4 of the \\nGerman Stock Corporation Act (Aktiengesetz, AktG). The 10% limit of the share capital shall apply at the \\ntime of the resolution on this authorisation by the Annual General Meeting as well as at the time of \\nexercise of the authorisation. Shares of the Company (i) which are issued or sold during the term of the \\nAuthorised Capital 2021 excluding shareholders’ pre-emption rights directly or respectively applying \\nSection 186 (3) sentence 4 AktG or (ii) which are or can be issued to service option and convertible bonds \\napplying Section 186 (3) sentence 4 AktG while excluding shareholders’ pre-emption rights during the \\nterm of the Authorised Capital 2021, shall be counted towards said limit of 10%; \\n• in case of capital increases against contributions in cash insofar as it is required to grant pre-emption \\nrights regarding the Company’s shares to holders of option or convertible bonds which have been or will \\nbe issued by the Company or its direct or indirect subsidiaries to such an extent to which they would be \\nentitled after exercising option or conversion rights or fulfilling the conversion obligation as a \\nshareholder; \\n• in case of capital increases against contributions in kind for carrying out mergers or for the direct or \\nindirect acquisition of companies, participation in companies or parts of companies or other assets \\nincluding intellectual property rights and receivables against the Company or any companies controlled \\nby it in the sense of Section 17 AktG. \\nThe total amount of shares issued or to be issued based upon this authorisation while excluding \\nshareholders’ pre-emption rights may neither exceed 10% of the share capital at the time of the \\nauthorisation becoming effective nor at the time of exercising the authorisation; this limit must include all \\nshares which have been disposed of or issued or are to be issued during the term of this authorisation \\nbased on other authorisations while excluding pre-emption rights or which are to be issued because of an \\nissue of option or convertible bonds during the term of this authorisation while excluding pre-emption \\nrights. The Management Board shall be entitled, with approval of the Supervisory Board, to determine the \\nremaining terms of the rights associated with the new shares as well as the conditions of the issuance of \\nshares. The Supervisory Board is entitled to adjust the respective version of the Company’s Articles of \\nAssociation with regard to the respective use of the Authorised Capital 2021 and after the expiration of the \\nauthorisation period. \\nThe Management Board of PUMA SE did not make use of the existing Authorised Capital in the current \\nreporting period. \\nCONDITIONAL CAPITAL \\nThe Annual General Meeting of 11 May 2022 has authorised the Management Board until 10 May 2027 with \\nthe approval of the Supervisory Board to issue once or several times, in whole or in part, and at the same \\ntime in different tranches bearer and/or registered convertible bonds and/or options and profit-participation \\nrights and/or profit bonds or combinations thereof with or without maturity restrictions in the total nominal \\namount of up to € 1,500,000,000.00. \\nThe share capital is conditionally increased by up to € 15,082,464.00 by issue of up to 15,082,464 new no-par \\nvalue bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented \\nto the extent that conversion/option rights are exercised, or the conversion/option obligations are \\nperformed, or tenders are carried out and to the extent that other forms of performance are not applied. \\nNo use has been made of this authorisation to date. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n253 \\nAUTHORISATION TO ACQUIRE TREASURY SHARES \\nThe Annual General Meeting of 7 May 2020 resolved under agenda item 6 to authorise PUMA SE to acquire \\nand utilise treasury shares until 6 May 2025, including the authorisation to sell treasury shares while \\nexcluding shareholders' pre-emption rights and the authorisation to offer and transfer treasury shares to \\nthird parties against non-cash consideration. The authorisation from 2020 was extended by resolution of the \\nAnnual General Meeting on 5 May 2021 to the effect that the Supervisory Board was authorised to issue \\ntreasury shares to members of the Management Board as a component of Management Board \\nremuneration, while excluding shareholders' pre-emption rights. In addition, the authorisation from 2020 \\nwas extended by resolution of the Annual General Meeting on 11 May 2022 to the effect that the Management \\nBoard was authorised to issue shares acquired, excluding shareholders' subscription rights, in connection \\nwith share-based payment or employee share programs of the Company or its affiliated companies to \\npersons who are or were employed by the Company or one of its affiliated companies or are a member of \\nthe management of a company affiliated with the Company. In all other aspects, the authorisation from 2020 \\nremained unchanged. \\nNo use has been made of the authorisation to acquire treasury shares in the reporting period. \\nSignificant agreements of the Company which are subject to a change of control as a result of a takeover \\nbid and the resulting effects (Section 289a [1][8], 315a [1][8] HGB) \\nMaterial financing agreements of PUMA SE with its creditors contain the standard change-of-control \\nclauses. In the case of change of control the creditor is entitled to termination and early calling-in of any \\noutstanding amounts. \\nFor more details, please refer to the relevant disclosures in chapter 17 of the Notes to the Consolidated \\nFinancial Statements. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n254 \\nCORPORATE GOVERNANCE STATEMENT IN \\nACCORDANCE WITH SECTION 289F AND 315D HGB \\n┌ \\nThe corporate governance statement (in accordance with Sections 289f and 315d HGB) includes the \\ndeclaration of compliance, information on corporate governance practices and a description of the working \\nmethods of the Management Board and Supervisory Board. It is available at \\nhttps://about.puma.com/en/investor-relations/corporate-governance. \\n└ \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n255 \\nRISK AND OPPORTUNITY REPORT \\nPUMA is continuously exposed to opportunities and risks in the competitive, fast-paced and international \\nsport and lifestyle industry. The risk strategy is therefore to take business risks in a calculated manner in \\norder to implement the corporate strategy with all its opportunities. For this purpose, effective risk and \\nopportunity management is required so that opportunities can be recognised and utilised, and risks can be \\nidentified and managed at an early stage. We define risks as potential future developments or events that \\nmay lead to a negative deviation from targets for the company (see the \\\"Risk Management System\\\" section). \\nSimilarly, opportunities are potential future developments or events that may result in a positive deviation \\nfrom targets. \\n \\nRISK MANAGEMENT SYSTEM \\nPUMA takes a conscious and controlled approach to risks in order to achieve the company's goals. The aim \\nof the risk management system is to identify and manage at an early-stage material risks or risks that could \\neven jeopardise the company's existence and thus support the achievement of the company's objectives. In \\naddition, compliance with the related laws, regulations and standards must be ensured, as well as \\ntransparency in relation to the risk situation from the perspective of partners such as customers, suppliers \\nand investors. Therefore, PUMA has established an appropriate and effective risk management organisation \\nwhich is able to identify risks at an early stage and manage them in accordance with the corporate strategy \\nand promote risk awareness within the PUMA Group to facilitate risk-based decisions. As part of the \\norganisation, risks are looked at Group-wide, unless explicitly stated to the contrary. As in the previous year, \\nPUMA's risk management system is based on a comprehensive, interactive, and management-oriented \\napproach to risk that is integrated into the company's organisation and is based on the globally recognised \\nCOSO standard (Committee of Sponsoring Organisations of the Treadway Commission). Opportunity \\nmanagement is not part of the risk management system and is the responsibility of operational \\nmanagement teams in the respective regions, markets, and departments (see the \\\"Opportunities\\\" section). \\nThe Management Board of PUMA SE bears overall responsibility for the risk management system in \\naccordance with Section 91(3) AktG. The Management Board regularly updates the Audit Committee of the \\nSupervisory Board of PUMA SE. In addition, pursuant to Section 107(4), the Audit Committee has a direct \\nright to information from the operational management departments. The Risk Management Committee, \\nwhich consists of the PUMA SE Management Board and selected managers, is responsible for the design, \\nreview, and adaptation of the risk management system. For the operational coordination of the risk \\nmanagement process and support of the risk officers, the risk management function of the Group Internal \\nAudit, Risk Management & Internal Control department has been assigned to prepare the regular risk \\nreporting to the Risk Management Committee. The responsibilities, tasks and processes of the risk \\nmanagement system are defined in PUMA’s enterprise risk guidelines. The structure and design of the risk \\nmanagement system are as follows: \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n256 \\n↗ G.19 RISK MANAGEMENT SYSTEM \\n \\n \\n \\n \\nThe risk owners are mainly the managers of the functional areas and the managing directors of the \\nsubsidiaries. Risks are identified company-wide by performing a bottom-up analysis within the risk owner's \\narea of responsibility. These risks are regularly reported to the risk management function and/or the local \\nmonitoring bodies in structured interviews that take place every six months or during the year using \\nestablished internal reporting channels. As a part of the risk culture at PUMA, general information for risk \\nmanagement as well as training materials are made available for all employees. \\nThe risks are evaluated and assessed in terms of probability of occurrence and extent of damage using \\nquantitative criteria with the help of a systematic methodology. The quantitative criteria are represented in \\nthe form of risk classification ranges on a four-level scale: Low, Medium, Significant and High. While the \\nrisk assessment of the probability of occurrence is measured as a percentage rate, the extent of damage is \\nbased on the planned operating result for the upcoming financial year. We follow a net risk approach, \\naddressing the risks that remain after existing control measures have been implemented. The resulting risk \\nassessments are presented as an aggregated risk group (\\\"overall risk situation\\\"). Thus, for the materiality \\nassessment, the quantified risks are combined from their extent of damage and probability of occurrence \\nand are classified in a comprehensive risk matrix regarding their significance level (“Low”, “Moderate”, \\n“Material” and “Critical”) for internal monitoring and to assess their viability (see graphic G.21). \\nFor example, a risk can be allocated within the most critical range, which may also include risks that could \\neven jeopardise the company's existence, in the case that its assessment reflects a combination of highest \\nbandwidth for extent of damage (“High > € 50 million”) and probability (“High > 50%”). The overview of the \\nrisk groups is presented in table T.7, summarised in the order of their relative importance and their change \\nduring the year. \\n \\n \\nSupervisory Board / Audit Committee\\nManagement Board / Risk Management Committee\\nRisk Strategy\\nInternal Audit\\nMonitoring\\nRisk Owner\\nSubsidiaries\\nFunctions\\nIdentification\\nManagement\\nAssessment\\nReporting\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n257 \\n↗ G.20 RISK MATRIX \\n \\n \\nRegular risk identification and assessment is carried out by the risk management function every six months \\nwith all major functional areas. The risks recorded and assessed are also reviewed with a top-down \\napproach by the Risk Management Committee. This ensures that adequate consideration is given to \\ninterdependencies and the overall risk situation. \\nThe risk owners are responsible for the operational management of identified risks. Risks can be managed \\nby avoiding, reducing, diversifying, or transferring the risk to achieve the targeted and acceptable residual \\nrisk. Within the reporting process, material risks or those which could even jeopardise the company’s \\nexistence are coordinated with and managed by the Risk Management Committee or the Management \\nBoard, considering the risk-bearing capacity, which is also based on the planned operating result. \\nThe methodology and structure of the risk management system are continuously monitored in terms of \\ntheir appropriateness and effectiveness and adapted or improved when required. This is carried out on the \\none hand by the Internal Audit department, as an independent audit body within the PUMA Group, and on \\nthe other hand through the utilisation of the results of the auditor of PUMA SE, which assesses the early \\nrisk identification system annually for its fundamental suitability to be able to identify risks that endanger \\nthe company’s existence at an early stage. \\n \\n \\nLikelihood in %\\nlow\\nmoderate\\nmaterial\\ncritical\\nhigh\\nsignificant\\nmedium\\nlow\\n>50\\n≤50 ≥20\\n<20 ≥10\\n<10\\nSignificance level\\nImpact in € million\\n≥5 <20\\nmedium\\n≥20 <50\\nsignificant\\n≥2 <5\\nlow\\n≥50\\nhigh\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n258 \\nRISKS \\nThe following explanations of risk groups are presented based on their relative importance from the Group \\nperspective for the financial year 2023. \\nMACROECONOMIC DEVELOPMENTS \\nAs an internationally operating enterprise, PUMA is exposed to challenges and uncertainties that affect the \\nglobal economy and the associated risks may have an impact on our sales and sourcing markets. For \\nexample, macroeconomic risks because of economic recessions, changes in interest rates, or inflation and \\ncost pressures, might have an impact on consumer behavior, production costs, sales, and profit margins. \\nLikewise, global events such as political changes, social developments, geopolitical tensions, and natural \\ndisasters can disrupt supply chain activities or affect consumer sentiment, are also reflected in legal and \\nmacroeconomic conditions. \\nIn 2023, the macroeconomic and geopolitical environment remain challenging. The recent conflict in Middle \\nEast, the war in Ukraine, persistent inflation, and the risks of recession weights on consumer sentiment, \\nresulting in volatile demand in the retail sector. The pattern of China’s economic recovery after COVID-19 \\nremains uncertain and competition with both local and global brands remains high. \\nOverall, we manage these challenges by having close alignment and communication with regions and key \\nmarkets to follow up and deal with critical developments affecting PUMA business environment (e.g., price \\nincreases, supply chain interruptions, geopolitical tensions) and develop alternative scenarios to analyse \\npossible occurrence of events. Moreover, the Management Board is regularly updated about country and \\nmacroeconomic developments and defines action plans to quickly adapt to changing economic conditions. \\nBUSINESS PARTNERS \\nAs an enterprise with global operations, managing sourcing and supply chain related risks is of key \\nimportance for PUMA. Most of our PUMA products are produced in Asia in countries like China, Vietnam, \\nCambodia, Bangladesh, Indonesia and India. In addition to the challenges, production in these countries \\ncontinues to be associated with significant risks for us. These risks arise, for example, from changes in \\nsourcing, wage and logistic costs, supply bottlenecks for raw materials or components, and quality issues, \\nas well as from the possibility of overdependence on individual suppliers. Sourcing and the supply chain \\nmust also react to risks, such as changes in duties and tariffs as well as trade restrictions and government \\nrequirements. The transport of products to the distribution countries is also exposed to the risk of delays \\nand failures by warehouse and logistics service providers due to extraordinary events and/or human or \\nsystem error. \\nTo mitigate business partners related risks, we have implemented a functional framework for sourcing and \\nsupply chain processes. Our sourcing portfolio is regularly reviewed and adjusted to avoid creating a \\ndependence on individual suppliers and sourcing markets. Generally, long-term master framework \\nagreements are concerted to secure the required production capacities for the future. Regular \\ncommunication with PUMA entities allows us to anticipate any price increase and strengthen our forecast \\nactivities. A quality control process and the direct and partnership-like collaboration with suppliers should \\npermanently secure the quality and availability of our products. Moreover, we continuously analyse political, \\neconomic, and legal framework conditions and have further enhanced our close cooperation with our \\nlogistics partners to be able to react to changes in the supply chain early on and to continuously strengthen \\nthe supply chain. The collaboration with warehouse and logistics service providers is accordingly secured by \\nselection processes, consistent contractual terms, and permanent monitoring of relevant indicators. \\nIn 2023 global sourcing markets normalised because of the end of COVID-related restrictions: However, \\nthere are continued supply chain and sourcing challenges regarding rising costs and the potential threat of \\na larger recession that could still cause disruptions and delays in the operations. To diminish these \\nchallenges, we have further intensified the cooperation with our suppliers and logistics partners to be able \\nto act flexibly and base our actions around finding the right solutions. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n259 \\nCURRENCY RISKS \\nAs a group that operates internationally, PUMA is exposed to transactional foreign currency risks. The \\ncurrency risks exist to the extent that the exchange rates of currencies in which purchase and sales \\ntransactions as well as lending transactions and receivables are carried out fluctuate against the functional \\ncurrency of the PUMA Group - the euro. \\nPUMA's biggest sourcing market is Asia, where most payments are settled in US dollars (USD), while sales \\nof the PUMA Group are mostly invoiced in other currencies. PUMA manages currency risk in accordance \\nwith internal guidelines. Material risks are hedged, in accordance with the Group directive, up to a hedging \\nratio of 95% of the estimated foreign currency risks from expected purchase and sales transactions over the \\nnext 12 to 15 months. Forward exchange contracts and currency options, usually with a term of around 12 \\nmonths from the reporting date, are used to hedge the foreign currency risk. For significant risks that are \\nsubject to large hedging costs, high hedging ratios can only be achieved over shorter terms. \\nTo hedge signed or pending contracts against currency risk, PUMA only concludes currency forward \\ncontracts and currency options on customary market terms with reputable international financial \\ninstitutions. As of the end of 2023, the net requirements for the 2024 planning period were adequately \\nhedged against currency effects, if possible. \\nForeign exchange risks may also arise from intra-group loans granted for financing purposes. Currency \\nswaps and currency forward transactions are used to hedge currency risks when converting intra-group \\nloans denominated in foreign currencies into the functional currencies of the group companies (EUR). \\nIn addition, as an international group with its own presence in a large number of countries, PUMA is also \\nexposed to translation risks. These arise in the course of consolidation when individual financial statements \\nof foreign subsidiaries that do not prepare their accounts in euros are translated into the PUMA Group's \\nfunctional currency, the euro. \\nIn countries with high interest and inflation rates, both transaction risks and translation risks can arise to a \\nconsiderable extent. PUMA does not hedge these risks, as the hedging costs in high-interest countries - \\ninsofar as hedging is possible at all - in some cases significantly exceed the benefits of hedging. The \\nnegative effects of currency and inflation are generally compensated for by adjusting the prices of products \\nin the respective market. \\nIn order to disclose market risks, IFRS 7 requires sensitivity analysis that show the effects of hypothetical \\nchanges in relevant risk variables on earnings and equity. The periodic effects are determined by relating \\nthe hypothetical changes caused by the risk variables to the balance of the financial instruments held as of \\nthe balance sheet date. The underlying assumption is that the balance as of the balance sheet date is \\nrepresentative for the entire year. \\nCurrency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a \\ncurrency which differs from the functional currency and are monetary in nature. Differences resulting from \\nthe conversion of the individual financial statements to the group currency are not taken into account. All \\nnon-functional currencies in which the Group employs financial instruments are generally considered to be \\nrelevant risk variables. \\nThe currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies. \\nThis also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also \\nreassessed as part of the sensitivity analysis. It is assumed that all other influencing factors, including \\ninterest rates and raw material prices, remain constant. The effects of the forecasted operating cash flows \\nare also ignored. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n260 \\nCurrency forward contracts, used to hedge against payment fluctuations caused by exchange rates, are part \\nof an effective cash-flow hedging relationship pursuant to IAS 39. Changes in the exchange rate of the \\ncurrencies underlying these contracts have an effect on the hedge reserve in equity and on the fair value of \\nthese hedging contracts. \\nPANDEMIC \\nPUMA first identified the COVID-19 pandemic as a new risk in the financial year 2020 and accordingly estab-\\nlished the risk category \\\"Pandemic”. Risks related to a pandemic event such as supply chain disruptions, \\neconomic and financial strains, lockdowns, retail store closings, cancellations of sport events or social \\nrestrictions could lead to severe business disruptions, reduced consumption, loss of sales, or liquidity \\nshortfalls. For financial year 2023, the negative impacts of the pandemic have diminished as countries and \\nregions ended pandemic-related restrictions and economic and life activities are normalising. In principle, \\nuncertainties arise in relation to new variants that could lead to possible lockdowns or restrictions. \\nTo mitigate pandemic-related risks, different strategic approaches have been established to ensure and \\nprioritise the health and safety of our employees and customers, as well as continuous monitoring of the \\nsituation and possible restrictions. There is continuous monitoring of the latest economic events and close \\nalignment with our regions and key markets to manage critical developments and adapt to market \\nconditions. Close cooperation with partners and suppliers is essential to implement and monitor \\ncontingency strategies. In addition to Direct-to-Consumer business, the e-commerce business and PUMA \\nApp are an essential part of our distribution structure. \\nPRODUCT & MARKET ENVIRONMENT \\nThe sport and lifestyle markets are defined by intense competition, constant innovation, and changing \\nconsumer preferences. PUMA faces the challenge of continuously innovating and differentiating its product \\noffering to capture consumer interest and gain and edge over its competitors. Product and market \\nenvironment risks could arise from a non-anticipated or late response to consumer demand within the fast-\\nmoving lifestyle and sports markets. Constant changes in consumer lifestyle/sports trends and long product \\nlifecycles bear the risk of creating products that are not relevant to our consumers, launching them at the \\nwrong time, launching them with the wrong marketing campaign or placing them in the wrong distribution \\nchannels. As a result, these risks could lead to a loss in market share, sales shortfalls, and lower brand \\nattractiveness. Media reports about PUMA also play a key role in brand image. For example, reports about \\nthe infringement of laws or internal/external requirements, product recalls and exposure on social media \\nas well as reports about workforce diversity and tolerance can cause significant damage to brand image and \\nultimately result in the loss of sales and profit. \\nTo mitigate these risks, we conduct market research and systemic monitoring of market environment for \\nearly recognition and taking advantage of relevant consumer trends. Targeted investments in product design \\nand product development are to ensure that the characteristic PUMA design of the entire product range is \\nconsistent with the overall brand strategy (\\\"Forever Faster\\\"), thereby creating a unique level of brand \\nrecognition. Accordingly, we have set the guiding principle that \\\"We want to become the fastest sports brand \\nin the world\\\" to underline the company's long-term direction and strategy. The \\\"Forever Faster\\\" brand \\npromise does not just stand for PUMA's product range as a sports and lifestyle company, but also applies to \\nall company processes. Brand image is particularly strengthened through cooperation with brand \\nambassadors who embody the core of the brand and PUMA's brand values (\\\"brave,\\\" \\\"confident,\\\" \\n\\\"determined\\\" and \\\"joyful\\\") and have a large potential for influencing PUMA's target group. We additionally \\ncounter this risk through careful press, social media, and public relations work as well as by monitoring the \\npress and social media environment. \\nPROJECTS \\nThe strategic program portfolio of PUMA contains important and critical projects to ensure that the flow of \\ngoods and information is sufficiently supported by modern warehouse, logistics and IT infrastructure. These \\ninclude, for example, the implementation of IT systems to enhance operations, such as centralised systems \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n261 \\nor e-commerce platforms and systems in the warehouse and supply chain. Risk associated with projects \\ninclude ineffective change management, lack of resources, high costs, exceeding budget, overrun time \\nframes, non-acceptance of users due to weak communication, increase vulnerability to potential data \\nbreaches and disruption to business processes. \\nTo manage project-related risks effectively, PUMA has established group and regional project teams as well \\nas policies to manage the roll-out of new and existing projects that have a significant impact on the core \\nvalue chain. In addition, as part of project management practices, continuous alignment with stakeholders \\nand steering meetings to monitor, provide support and guidance on strategic projects are implemented to \\nensure its execution is in line with pre-defined objectives and milestones such as time frames and budgets. \\nINFORMATION TECHNOLOGY \\nThe ongoing digitalisation of business environments brings new challenges to PUMA in the field of \\ninformation technology which – in case of incidents - may have an impact on our operations, data security \\nand privacy, as well as overall performance. Key business procedures and processes such as supply chain \\nmanagement, e-commerce, and financial reporting depend on digital services, infrastructure, and their \\nunimpaired availability. Interruptions of service availability can disrupt essential processes and cause \\noperational problems. Moreover, information security is of outmost importance for PUMA, the risk of a data \\nbreach might lead to financial loss, brand damage, legal claims, and loss of customer trust. \\nTo mitigate these risks, we continuously carry out technical and organisational measures. Key business \\nprocedures, processes and infrastructure on information technology and security are established based on \\nbest -practice frameworks, regularly updated and controlled. These processes are subject to internal and \\nexternal audits to ensure their reliability and the appropriateness of control mechanisms. Appropriate \\nprocedures and guidelines related to IT-incident response are in place and updated accordingly. Moreover, \\nPUMA has an Information Security Committee which consistently updates the Management Board on the \\nlatest status and developments. In addition, trainings and information campaigns are conducted regularly to \\nincrease awareness and knowledge on information security related issues. \\nDISTRIBUTION STRUCTURE \\nPUMA relies on different distribution channels including the Wholesale business with our retail partners \\nand the Direct-to-Consumer (DTC) business with our PUMA-owned and operated (O&O) retail stores and e-\\ncommerce platforms. This diversified distribution mix enables PUMA to reduce its dependency on individual \\ndistribution channels and/or retail partners. \\nThe wholesale business represents the largest share of sales overall and is characterised by strong \\npartnerships with all our retail partners. The company’s DTC business has a complementary role and is \\nintended to ensure a better and more comprehensive presentation of PUMA products in a controlled brand \\nenvironment, direct interaction with our end consumers and a higher gross profit margin. \\nIn the wholesale business, growing retailers, including those offering their own brands, and direct \\ncompetitors pose the risk of intensified competition for market shares, price pressures or reduced profit \\nmargins. Consumer purchase behavior is also changing, focusing more on e-commerce and a combination \\nof stationary and digital trade. This requires continuous adjustment of the distribution structure. \\nDistribution through our O&O retail stores and e-commerce platforms is, however, also associated with \\nvarious risks including the required investments in expansion and infrastructure, setting up and \\nrefurbishing stores, higher fixed costs, and leases with long-term lease obligations. This can have an \\nadverse impact on profitability in the event of a business decline. \\nTo avoid risks, we carry out permanent monitoring of distribution channels and regular reporting by \\nControlling and the dedicated functions. We maintain strong collaborations with all our retail partners in line \\nwith our wholesale-focused strategy. The company's reporting and controlling system allows us to detect \\nnegative trends early on, and to take the countermeasures required to manage individual stores and overall \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n262 \\nto monitor the evolution of the distribution landscape. A detailed location and profitability analysis is carried \\nout in our DTC business before making any investment decision. In e-commerce, global activities are \\nharmonised and investments in IT systems are carried out to further improve the shopping experience for our \\nconsumers and to drive conversion. This includes the continued global roll-out of the PUMA Shopping App. \\nSUSTAINABILITY \\nSustainability topics are highly important for PUMA specially in sourcing as well as along the entire value \\nchain. Natural resources crises and the resulting increase in customer requirements regarding \\nsustainability have led to a stronger ecological focus in our product range, both at our own locations and \\nalong the production and supply chain. A more efficient use of resources, reduction in greenhouse gas \\nemissions and compliance with environmental standards as well as the increased use of environmentally \\npreferred materials and environmentally friendly chemicals in production are crucial parts of our \\nsustainability strategy. The risk of not implementing an effective sustainability approach to our products and \\nalong the supply chain could lead to serious brand damage, loss of customer loyalty, supply chain \\ndisruptions, increased costs, and non-compliance with environmental regulations. \\nPUMA’s efforts towards managing sustainability risks and efficient use of resources are reflected in the \\ncomprehensive “Forever Better” strategy which defines 10 target areas to improve sustainability \\nperformance: Human Rights, Climate Action, Circularity, Products, Water and Air, Biodiversity, Plastics and \\nthe Oceans, Chemicals, Health & Safety as well as Fair Income. For each of these target areas, which are \\naligned to the UN Sustainable Development Goals (SDGs), there are measurable targets and KPI’s which are \\nregularly monitored and reported to Board Members, Supervisory Board, and stakeholders. Additionally, \\nrisk assessments and audits are performed to ensure our suppliers follow environmental standards. \\nPUMA’s efforts to engage with stakeholder dialog through different events like “Conference of the People” \\nor \\\"Voices of a RE:GENERATION\\\" allowed to discuss sustainability topics with generation Z representatives, \\nindustry peers, experts and activists. \\nPUMA's sustainability report (the Non-financial Report) for the financial year 2023 is published together \\nwith the combined management report and can be accessed at the following page on our website: \\nhttps://about.PUMA.com/en/investor-relations/financial-reports. \\nMONITORING OF WORKING CONDITIONS \\nAn important aspect of corporate responsibility is maintaining and monitoring good working conditions and \\ncompliance with human rights in PUMA’s own operations and throughout the supply chain to ensure that \\nemployee’s rights and well-being are protected. This risk considers the event of human rights violation or \\nsocial and environmental non-compliance (e.g., child labor, excessive overtime, forced labor, sexual \\nharassment, gender-based violence, unsafe work environment, fair income) in PUMA’s own business and its \\nsupply chain. \\nTo mitigate these risks, PUMA has implemented clear policies that are aligned with all relevant legislation \\non sustainability like the German Supply Chain Act, United Nations’ (UN) Declaration of Human Rights, the \\nUN Guiding Principles (UNGPs) on Business and Human Rights, the International Labor Organisation’s Core \\nLabor Conventions, and the ten principles of the UN Global Compact (UNGC). Regular audits and human \\nrights/environmental risk assessments are conducted at the corporate and the supply chain level to \\nevaluate compliance with applicable standards. Stakeholder dialogue with NGOs and partnerships with \\norganisations (e.g., Fair Labor Association) enable transparent communication channels to address \\nconcerns and share best practices regarding human rights and environmental standards. \\nPUMA’s Sustainability Report (the Non-financial Report) for the financial year 2023 is available here: \\nhttps://about.PUMA.com/en/investor-relations/financial-reports. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n263 \\nLEGAL \\nAs an internationally operating group, PUMA is exposed to various legal risks. These risks could arise from \\nIntellectual Property (IP) infringements that involve using a trademark, patent or copyright without proper \\nauthorisation and resulting in legal disputes, brand damage or loss of exclusivity rights. Contractual risks or \\nrisks that a third party could assert claims and litigations for infringements of its trademark rights are also \\nconsidered. Counterfeit products are often of inferior quality and may not meet safety standards which can \\nundermine the PUMA’s brand reputation, reduce consumer trust and lead to legal disputes. \\nThe continuous monitoring of contractual obligations and the integration of internal and external legal \\nexperts in contractual matters should ensure that any legal risks reduced to the minimum. The legal team \\nis responsible for protecting our intellectual property in order to act against brand piracy. This not only \\nensures that we have a strong global portfolio of property rights, such as trademarks, designs and patents, \\nbut also works closely with customs, police and other authorities and provides input to legislators regarding \\nthe implementation of effective measures to protect intellectual property. \\nCOMPLIANCE \\nAs an international group, PUMA is exposed to compliance risks resulting from the potential non-adherence \\nto corporate governance rules, legal and regulatory requirements, or industry standards. These risks \\ninclude fraud, conflict of interest, money laundering, antitrust law, corruption as well as deliberate \\nmisrepresentations in financial reporting which may lead to significant penalties, legal consequences, \\nreputational damage, and disruption to business operations. \\nPUMA has implemented various tools to manage such risks. This includes a functioning compliance \\nmanagement system, the internal control system, group controlling and the internal audit departments to \\nprevent, detect and sanction compliance-related topics at an early stage. Through the compliance \\nmanagement system, clear roles and responsibilities are assigned to group and local compliance functions. \\nTo ensure PUMA employees comply with PUMA ‘s values there are ongoing trainings, communication and \\nawareness campaigns for policies and procedures. PUMA employees also have access to a whistleblowing \\nsystem for reporting illegal or unethical behavior. \\nTAX \\nAs a global company PUMA is exposed to a complex tax environment in which main challenges arise from \\ncross-border transactions involving intercompany transfer of goods, services, and intellectual property. To \\nminimise tax exposure, it is essential to optimise tax planning activities and ensure compliance with local \\nand international laws and reporting requirements. In addition to compliance with national tax regulations \\nto which the individual group companies are subject, there are increasing risks related to intra-group \\ntransfer pricing, which must be applied for various internal business transactions in accordance with the \\narm's length principle between related parties. Different countries have implemented laws and guidelines \\nfor international taxes in alignment with the Organisation for Economic Co-operation and Development \\n(OECD) recommendations to standardise requirements for transfer-pricing documentation and update \\nglobal tax policy. \\nIn order to manage tax-related risks in an effective manner, PUMA established a solid tax governance \\nframework. An adequate tax organisation with internal and external tax experts to comply with the relevant \\ntax regulations and to be able to react to changes in the constantly changing tax environment. For the \\ngroup-internal transfer pricing, corresponding documentation and policies are in place and aligned with \\ninternational and national requirements and standards. There are guidelines and specifications for \\ndetermining transfer prices for intra-group transactions that are common for foreign companies, which \\ncomply with the applicable internal procedural rules and are binding for employees who act on behalf of the \\ngroup. By means of internal tax reporting, external and internal tax experts can control and monitor tax \\ndevelopments at PUMA on an ongoing basis. Training and awareness activities are performed on a regular \\nbasis to ensure relevant stakeholders are informed about current tax developments and acquire further \\nexpertise for tax treatment activities. Both, the Management Board, and the Supervisory Board, are \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n264 \\nregularly informed about ongoing tax developments at PUMA to identify and avoid tax-related risks as early \\nas possible. \\nPERSONNEL DEPARTMENT \\nThe creative potential, commitment and performance of PUMA employees are essential factors for \\nachieving our strategic and financial targets. Personnel-related risks involve the management of workforce, \\ntalent acquisition and retention, employee engagement and compliance with employment laws. Any \\nshortfall in staffing may lead to inadequate performance of tasks and have a negative impact on operational \\nefficiency. In addition, there is still strong global competition for highly qualified personnel. Therefore, loss \\nof key personnel and difficulties in identifying, attracting, and retaining key talent could lead to loss of know-\\nhow and decrease business performance. Likewise, non-compliance to health and safety laws and \\nregulations could lead to accidents, penalties, employee dissatisfaction, business interruptions and \\nreputational damage at Group level. \\nThrough our human resources strategy, we seek to encourage independent thinking and action, which are \\nkey in an open corporate culture with flat hierarchies on a long-term and sustainable basis. To achieve this \\ngoal, a control process is in place to detect and assess human-resource risks. PUMA pays particular \\nattention to talent management, identifying key positions and talent, ensuring this talent is trained and \\npositioned optimally, and succession planning. We have also instituted additional national and global \\nregulations and guidelines to ensure compliance with legal provisions and safeguard the health and safety \\nof our employees. Moreover, employee surveys are conducted to obtain feedback and measure employee \\nengagement (e.g., “Great Place to Work”, “Diversity Leader”). During 2023, PUMA received several awards \\nwhich recognised the ongoing efforts to create a diverse, inclusive, and equal workforce (e.g., “Top \\nEmployer”). We will continue to make targeted investments in the human resource needs of functions or \\nregions to meet the future requirements of our corporate strategy. \\nLIQUIDITY AND INTEREST RATE RISKS \\nPUMA continually analyses short-term capital requirements by rolling cash flow planning at the level of the \\nindividual companies in coordination with the central Treasury department. In order to ensure the \\ncompany's solvency, financial flexibility and a strategic liquidity buffer, PUMA maintains, for example, a \\nliquidity reserve in the form of cash and confirmed credit facilities. In this respect, as of December 31, 2023, \\nthe PUMA Group had unused credit lines totaling € 896.1 million. \\nMedium and long-term funding requirements that cannot be directly covered by net cash from operating \\nactivities are financed by taking out medium and long-term loans. For this purpose, various promissory note \\nloans were issued in several tranches with fixed and variable coupons and different remaining terms. The \\nutilised promissory note loans amount to a total of € 551.5 million as of December 31, 2023 and have a \\nremaining term of between one and five years. \\nChanges in market interest rates around the world have an impact on future interest payments for variable \\ninterest liabilities. As PUMA only has a limited amount of variable interest-bearing liabilities, interest rate \\nhedging instruments are used to a limited extent. \\nDEFAULT RISKS \\nDue to its business activities, PUMA is exposed to default risk on trade receivables. These risks consider \\ndelayed payments and losses of accounts receivables (e.g., default of a customer) as well as default risks \\nfrom counterparty's other contractual financial obligations (e.g., bank deposits, derivative financial \\ninstruments). This could lead to bad debt expenses and reduced liquidity and could have a negative impact \\non cash flow and profitability, as trade receivables are one of the most significant financial assets. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n265 \\nThe default risk is managed by continuously monitoring outstanding receivables and recognising \\nimpairment losses, where appropriate. The default risk is limited, if possible, by credit insurance. The \\nmaximum default risk is reflected by the carrying amounts of the financial assets recognised in the balance \\nsheet. In addition, default risks also arise to a lesser extent from other contractual financial obligations of \\nthe counterparty, such as bank balances and derivative financial instruments. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n266 \\nRISK OVERVIEW TABLE \\nThe following table summarises the risk groups described above based on their relative importance \\n(significance level) and any changes during the year: \\n↗ T.07 OVERVIEW OF RISK GROUPS \\nRisk Groups \\nClassification \\nDescription \\nSignificance level \\nChange compared \\nto previous year \\nMacroeconomic \\nDevelopments \\nStrategic \\ne.g., economic development, political \\nsituation, geopolitical tensions \\nCritical \\n↗ \\nBusiness Partners \\nOperational \\ne.g., raw material bottlenecks, supply \\nchain disruptions, sourcing and \\nlogistic costs, quality problems \\nCritical \\n→ \\nCurrency Risk \\nFinancial \\ne.g., exchange rate fluctuations \\nCritical \\n↗ \\nPandemic \\nStrategic \\ne.g., store closures, supply problems, \\nhealth of employees and customers \\nCritical \\n↘ \\nProduct and Market \\nEnvironment \\nStrategic \\ne.g., trends, customer requirements, \\nbrand image, media reports \\nMaterial \\n→ \\nProjects \\nStrategic \\ne.g., IT infrastructure, construction \\nprojects \\nMaterial \\n→ \\nInformation \\nTechnology \\nOperational \\ne.g., cyberattacks, network and \\nsystem failures \\nMaterial \\n→ \\nDistribution Structure \\nStrategic \\ne.g., change in the distribution \\nlandscape \\nMaterial \\n→ \\nSustainability \\nRegulatory \\ne.g., climate change, environmental \\nstandards \\nMaterial \\n→ \\nWorking Conditions \\nRegulatory \\ne.g., labor law, human rights, German \\nSupply Chain Due Diligence Act \\nMaterial \\n→ \\nLegal \\nRegulatory \\ne.g., trademark law, patent law, \\ncounterfeit products \\nMaterial \\n→ \\nCompliance \\nRegulatory \\ne.g., fraud, corruption \\nMaterial \\n→ \\nTax \\nFinancial \\ne.g., transfer prices \\nMaterial \\n→ \\nPersonnel Department Operational \\ne.g., key positions, employee \\nretention, health & safety \\nModerate \\n→ \\nLiquidity and Interest \\nRate \\nFinancial \\ne.g., cash, credit lines, custody fees, \\ninterest rate developments \\nModerate \\n→ \\nDefault Risk \\nFinancial \\ne.g., payment claims against \\ncustomers \\nModerate \\n→ \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n267 \\nOPPORTUNITIES \\nOpportunities should be identified by PUMA at an early stage, assessed and - where possible - materialised. \\nThe operational management teams in the markets and departments are responsible for opportunity \\nmanagement. In course of the budget- and mid-term process, the identified opportunities are incorporated \\ninto PUMA’s overall planning approach. PUMA has identified and defined multiple key opportunity \\ncategories for the current planning period and beyond. \\nPUMA is operating in an external environment that is characterised by increasing geo-political risks, \\ncontinued macro-economic headwinds, a muted consumer sentiment and a strong volatility in foreign \\nexchange rates. In addition, the speed of recovery in the important U.S. and Chinese markets remains \\nuncertain. In response, PUMA will continue to focus on managing short-term challenges without \\ncompromising the mid- and long-term momentum of the brand, always prioritising sales growth and \\nmarket share gains over short-term profitability. Therefore, PUMA will continue to focus on being the best \\npartner to its wholesale accounts and end consumer, providing them with the best possible service. \\nWithin our corporate strategy, we have defined the following six strategic priorities which offer significant \\nopportunities: elevate the brand, enhance product excellence, improve distribution quality, focus on people \\nfirst, digitalise our infrastructure and evolve sustainability. Within this overarching framework, we’re \\ncurrently placing a special focus on brand elevation, winning in the important U.S. market, and accelerating \\nour rebound in China. PUMA will continue to invest into the brand and sees significant opportunities to \\nincrease market shares in all key markets. Supported by new landmark partnerships with brand \\nambassadors such as Rihanna and A$AP Rocky, our lifestyle products continue to enjoy strong relevance \\nand demand across all age groups and regions. We have also made great progress in performance in recent \\nyears and have significantly improved our market position across football, running, fitness, basketball, golf, \\nand motorsport. PUMA's product range is being continuously optimised and further developed across all \\ncategories with a special emphasis on innovation and franchise management. In 2024, multiple \\ninternational sport events such as the UEFA Euro Cup in Germany, the Olympic & Paralympic Games in \\nParis, and the Copa America in the U.S. will give us a platform to underline our performance credibility and \\nto increase brand heat and visibility. The major global interest in these events and sports in general will \\nfurther support the growth of the sporting goods industry. We are also seeing a continued trend toward a \\nhealthier lifestyle, greater sports participation, and more casual clothing, which opens corresponding \\nopportunities for our industry. Meaningful marketing campaigns supported by relevant brand ambassadors \\nin all major markets are essential to anchor PUMA deeply in the hearts and minds of our consumers and \\ncreate brand relevancy and loyalty. To further elevate the brand and strengthen our consumer connection, \\nPUMA will also launch a big brand campaign in 2024. \\nIn terms of distribution, PUMA will continue to focus on the wholesale channel. The strong partnerships \\nwith our wholesale accounts offer opportunities for future market share gains and business growth. \\nHowever, we also see significant opportunities in our Direct-to-Consumer (DTC) business with a special \\nemphasis on PUMA’s e-commerce channels. Since 2022, we’re rolling out a dedicated PUMA shopping app \\nwhich is showing strong results and significantly better KPIs compared to our traditional puma.com e-\\ncommerce channels. The PUMA shopping app will be expanded to other markets in the coming years and \\nwill open further opportunities regarding customer loyalty and sales growth. New store formats and \\nimprovements to the overall shopping experience in our own retail stores can and should also lead to \\nadditional business opportunities. In China, we introduced a new store format that was developed by a local \\nagency to fit the needs of the Chinese consumers and that is showing strong results. In terms of \\ndistribution, ensuring delivery excellence through new, state-of-the art multi-channel distribution centers \\nin key markets also continues to support business development. \\nIn information technology, improved communication with wholesale accounts and consumers via digital \\nchannels also offers opportunities – e.g., through the increased use of 3D technology. In addition, new or \\nmore efficient processes supported by digital technology may add value or result in cost optimisation. The \\ndigitalisation of key business processes such as product design will continue to be advanced in order to \\nincrease efficiency and effectiveness. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n268 \\nWith end consumers paying more attention to sustainability, there is an opportunity to improve \\nsustainability-related communication and sell more sustainable products. PUMA’s strategic approach for \\nsustainability is centered around creating maximum possible impact within the supply chain and final \\ncustomer. Numerous initiatives are ongoing and aligned with the UN Sustainable Development Goals. For \\nexample, in 2023 PUMA reached another milestone: 7 out of 10 products were produced from better \\nmaterials such as recycled polyester. PUMA started the \\\"Voices of a RE:GENERATION\\\" initiative which aims \\nto have constant communication with GEN-Z activists and environmentalists and give feedback to our senior \\nmanagement on how PUMA can further strengthen its sustainability initiatives and communicate its \\nsustainability efforts to young audiences. All these initiatives will help us to evolve sustainability within \\nPUMA and leverage corresponding business opportunities. \\n \\nOVERALL ASSESSMENT OF THE RISK AND OPPORTUNITY SITUATION \\nThe assessment of the overall risk and opportunity situation of the Group and PUMA SE is the result of a \\nconsolidated view of the risk and opportunity categories described above for the financial year 2023. \\nFollowing the description in our 2023 combined management report, our assessment of PUMA's overall risk \\nsituation this year is predominantly influenced by the macroeconomic environment and volatile retail \\ndemand specially in key markets, as described above, and is focused on the major challenges these pose. \\nThe Management Board is currently not aware of any material risks that, either individually, on an \\naggregated basis or in combination with other risks, could jeopardise the continued existence of the Group \\nand PUMA SE. \\nHowever, we cannot exclude the possibility that in the future influencing factors, of which we are currently \\nunaware or which we currently do not consider to be material, could have a negative impact on the \\ncontinued existence of the Group or PUMA SE or individual consolidated companies. Also due to the \\nextremely solid balance sheet and the positive business outlook, the Management Board does not see any \\nsignificant threat to the continued existence of the PUMA Group and PUMA SE. \\n \\nMAIN FEATURES OF THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM AS IT \\nRELATES TO THE GROUP'S ACCOUNTING PROCESS \\nThe Management Board of PUMA SE is responsible for the preparation and accuracy of the annual financial \\nstatements, the consolidated financial statements and the combined management report of PUMA SE. The \\nconsolidated financial statements were prepared in accordance with the International Financial Reporting \\nStandards that apply in the EU, the requirements of the German Commercial Code (HGB), the German Stock \\nCorporation Act (AktG) and the German SE Implementation Act (SEAG). Certain disclosures and amounts \\nare based on current estimates by the Management Board and the management. \\nThe Management Board is responsible for maintaining and regularly monitoring a suitable internal control \\nand risk management system covering the consolidated financial statements and the disclosures in the \\ncombined management report. This control and risk management system is designed to ensure the \\ncompliance and reliability of the internal and external accounting records, the presentation and accuracy of \\nthe consolidated financial statements, and the combined management report and the disclosures contained \\ntherein. It is based on a series of process-integrated monitoring steps and encompasses the measures \\nnecessary to accomplish these, such as internal instructions, organisational and authorisation guidelines, \\nthe relevant company guidelines and handbooks, a clear separation of functions within the Group and the \\ndual-control principle. The adequacy and operating effectiveness of these measures are regularly reviewed \\nby the Group Internal Audit, Risk Management & Internal Control Department. \\nFor monthly financial reporting and consolidation, PUMA has a group-wide reporting and controlling system \\nthat makes it possible to regularly and quickly detect deviations from projected figures and accounting \\nirregularities and, where necessary, to take countermeasures. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n269 \\nBy means of established internal reporting channels, the risk management system can regularly identify \\nevents that could affect the Group's economic performance and its accounting process so that it can analyse \\nand evaluate the resulting risks and take the necessary actions to counter them. \\nIn preparing the consolidated financial statements and the combined management report, it is sometimes \\nnecessary to make assumptions and estimates based on the information available at the time the financial \\nstatements and management report are prepared that affect the amount, presentation and explanation of \\nrecognised assets and liabilities, income and expenses, contingent liabilities, and other reportable \\ninformation. \\nThe Audit Committee of the Supervisory Board meets on a regular basis with the independent statutory \\nauditors, the Management Board and the Group Internal Audit, Risk Management & Internal Control \\nDepartment to discuss the results of the internal audits and statutory audits with reference to the internal \\ncontrol and risk management system as it relates to the accounting process. At the annual meeting on the \\nfinancial statements, the auditor reports to the Supervisory Board (including the Audit Committee) on the \\nresults of the audit of the annual and consolidated financial statements. \\n \\nINTERNAL CONTROL SYSTEM \\nPUMA's internal control system applies to all employees throughout the Group as it incorporates the \\nprinciples, procedures and measures established by PUMA Group management. All essential business \\nprocesses that support the organisational implementation of management decisions must be taken into \\naccount. \\nWithin the PUMA Group, the methodology of the internal control system is based on the COSO Framework, \\nwhich describes internal management and monitoring considerations for key processes within the company. \\nIts purpose is to support the objectives of ensuring proper financial reporting, improving the efficiency and \\neffectiveness of the processes and maintaining compliance with legal framework conditions. \\nThe PUMA control framework is applied uniformly to the entire Group. The requirement here is to manage \\nthe significant risks through appropriate control activities. The objective is to continuously improve the \\ninternal control system and to identify specific risks and potential for improvement in the control \\nenvironment at process level in order to define appropriate recommendations for action and to \\nsystematically track their timely implementation. Independent monitoring bodies such as the Supervisory \\nBoard and the Audit Committee help ensure that the control environment remains up-to-date. The \\nManagement Board of PUMA SE bears overall responsibility for the internal control system. The \\nManagement Board regularly updates the Audit Committee of the Supervisory Board of PUMA SE. The \\ninternal control function of the Group Internal Audit, Risk Management & Internal Control Department has \\nbeen tasked with preparing regular reports for the Management Board in order to help coordinate the \\ninternal control system from an operational perspective. The responsibilities, tasks and processes of the \\ninternal control system are defined in guidelines. \\nWith regard to the PUMA control framework, the following five core components must be kept in mind: \\ncontrol environment, risk assessment, control activities, information and communication, and monitoring \\nactivities. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n270 \\n↗ G.21 INTERNAL CONTROL SYSTEM \\n \\n \\n \\n \\n \\n \\n \\nThe internal control system is based on the control environment established within the PUMA Group, in that \\nit lays out principles for employee and management behavior within the company. The standards practiced \\nare underpinned by internally formalised procedures and by clear guidelines on giving instructions and \\nauthorisations to do so. Together with external regulations, these internal standards form a control \\nenvironment that applies to all employees of the PUMA Group, supported by the relevant management and \\nthe process manager in the entities. \\nAs described in the previous section headed \\\"Risk Management,\\\" the PUMA Group is also subject to a large \\nnumber of risks that may potentially impact on company goals. Risk identification and assessment is \\ncarried out every six months in order to manage material risks at Group level. Using the resulting risk \\nportfolio, the objective of the internal control system is to ensure that the compensating control measures \\nfully correspond to the risk assessment/evaluation. In addition, the internal control system's risk \\nassessment also includes a large number of more detailed risks in day-to-day operations – for example, \\noperational activities in accordance with compliance regulations. \\nControl activities serve to counteract the identified business risks. In order to ensure that the control \\nframework is continuously up-to-date and to monitor its application in business processes, an annual \\n\\\"Internal Control Self-Assessment\\\" (ICSA) is completed by the key business units of the PUMA Group. The \\ninternal control function ensures that the key business units - at parent and subsidiary company level - are \\nincluded in the ICSA. The managers of these business units evaluate the specified control objectives of the \\nPUMA Group in relation to their business area. When doing so, the existing control framework is assessed \\nbased on internal and external guidelines and best-practice standards. Based on the responses, a level of \\nimplementation of the controls is determined, which undergoes independent verification by the Internal \\nControl function and is then communicated to the Management Board using established reporting channels. \\nThe results of the ICSA are also reported to the Audit Committee and the statutory auditors and are used by \\nthe internal audit function of the Group Internal Audit, Risk Management & Internal Control Department in \\nrisk-oriented audit planning. \\nThe purpose of informing and communicating potential business risks and control activities is to help make \\nsound business decisions, with the information required to do so being accessible within an appropriate and \\ntimely framework. Established communication channels are continuously used in the PUMA Group to \\nachieve this. The internal control function coordinates awareness training and regular coordination \\nmeetings in order to continuously guarantee, and also strengthen, its cooperation with the Management \\nBoard and other managers of business units. \\nControl \\nActivities\\nRisk \\nAssessment\\nInformation & \\nCommunication\\nMonitoring \\nActivities\\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n271 \\nThe use of a standardised software system as the basis for monitoring activities is intended to ensure the \\nsystematic and uniform implementation of ICSA across the entire company. The internal control function \\nanalyses the results of the ICSA and derives recommended actions, which are coordinated with the \\nmanagers of the business units and the implementation status of which is reviewed and monitored \\ncontinuously. \\n┌ \\nThe Management Board also monitors the effectiveness of the risk management and internal control \\nsystem in a holistic manner. Accordingly, key aspects of the systems are reviewed on a quarterly basis as \\npart of cyclical reporting. This is to ensure that material risks are managed with an appropriate level of \\ntransparency, that individual issues are discussed in an appropriate form and can be tracked, and that \\npossible improvements to the systems are considered. Supported by an established control environment, \\nthe continuous system monitoring, and improvement reflects the PUMA Group's open risk culture. During \\nthe reporting period, PUMA SE was not aware of any relevant circumstances that cast doubt on the \\nadequacy and effectiveness of the risk management and internal control systems nor that had not been \\nrectified by the balance sheet date. Nevertheless, it is worth noting that even systems that have been \\ncharacterised as appropriate and effective are subject to inherent limitations. As such, it is not possible to \\nguarantee the complete prevention of any procedural violations and/or risks arising. \\n└ \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n272 \\nOUTLOOK REPORT \\nGLOBAL ECONOMY \\nIn their winter forecast dated 13 December 2023, experts at the Kiel Institute for the World Economy (Kiel \\nInstitut für Weltwirtschaft – IfW Kiel) expect global gross domestic product (GDP) to increase by 2.9% in \\n2024, following growth of 3.1% in 2023. Meanwhile, inflation is rapidly on the decline, and central banks are \\nexpected to start cutting interest rates in the first half-year of 2024. However, there are currently no \\nprospects of an economic upturn. A high level of uncertainty about the economic conditions is slowing \\nthings down in the advanced economies, and fiscal incentives are tapering out. In China, economic \\nmomentum remains subdued, in view of structural issues. According to experts at IfW Kiel, the risks to the \\neconomic forecast for 2024 are primarily financial and political in nature. Among other things, there is \\nuncertainty about developments in China, where orderly consolidation in the property sector is still not \\nguaranteed. In addition, geopolitical risks have stemmed from the increasingly prominent differences \\nbetween China and the United States. Irrespective of this, the outcome of the upcoming presidential \\nelections in the United States in November harbours considerable economic and political uncertainty. \\n \\nSPORTING GOODS INDUSTRY \\nUnless the geopolitical environment has any significant negative impact on the overall economic \\nenvironment, we expect growth in the sporting goods industry in 2024. We expect demand for sporting goods \\nto increase in 2024 as the trend towards increased sports activities and healthier lifestyles continues and \\nbecomes even more significant following the COVID-19 pandemic. This applies equally to the increasing \\npopularity of athletic footwear and leisure/athletic apparel as an integral part of everyday fashion \\n(\\\"athleisure\\\"). We also assume that major sporting events in the coming year, such as the Summer \\nOlympics in Paris and the UEFA Euro 2024 men's football championship in Germany, will help to support \\ngrowth in the sporting goods industry. \\n \\nOUTLOOK 2024 \\nWe expect geopolitical and macroeconomic headwinds as well as currency volatility to persist in 2024. These \\nconditions already led to muted consumer sentiment and volatile demand in 2023 and we expect these \\neffects to continue in 2024, particularly in the first half of the year. \\nIn this continued challenging environment, we are fully focused on executing our strategic priorities: \\nelevating the brand, increasing product excellence and improving our distribution quality - especially in the \\nkey markets US and China. For us, 2024 is not only the year of sport with major events such as the Olympic \\nGames, Euro 2024 and the Copa America providing the perfect platform to showcase our strong product \\ninnovation and credibility as a performance brand. It is also the year in which PUMA will invest in a new \\nglobal brand campaign to improve its positioning as the fastest sports brand in the world. \\nSupported by the continued brand momentum and despite ongoing global geopolitical and macroeconomic \\nchallenges, PUMA expects to achieve mid-single-digit currency-adjusted sales growth and an operating \\nresult (EBIT) in the range of € 620 million to € 700 million for the financial year 2024 (2023: € 621.6 million). \\nThe outlook assumes that the future devaluation of the Argentine peso will be fully compensated by \\ncorresponding price increases in Argentina. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Combined Management Report \\n273 \\nWe expect net income (2023: € 304.9 million) to change in 2024 in line with the operating result. \\nAs in previous years, PUMA will continue to focus on managing short-term challenges without \\ncompromising the brand's medium- and long-term momentum. Our sales growth and market share gains \\nwill take priority over short-term profitability. The exciting product range for 2024 and the very good \\nfeedback from retail partners as well as consumers give us confidence for the medium- and long-term \\nsuccess and continued growth of PUMA. \\n \\nINVESTMENTS \\nInvestments in fixed assets of around € 300 million are planned for 2024. The majority of these investments \\nwill be in infrastructure in order to create the operating conditions required for the planned long-term \\ngrowth. The investments mainly concern own distribution and logistics centers, investments in the \\nexpansion and modernisation of the Group's own retail stores and investments in IT infrastructure. \\n \\nFOUNDATION FOR LONG-TERM GROWTH \\nThe Management Board and the Supervisory Board have set long-term strategic priorities. Action plans are \\nbeing implemented in a targeted and value-oriented manner. We believe that the corporate strategy \\n\\\"Forever Faster\\\" provides the basis for mid- and long-term positive development. \\nHerzogenaurach, 7 February 2024 \\nThe Management Board \\n \\n \\nFreundt \\nHinterseher \\n \\nDescours \\n \\nValdes \\n \\nThis is a translation of the German version. In case of doubt, the German version shall apply. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n274 \\nCONSOLIDATED FINANCIAL STATEMENTS \\nPUMA SE FOR FINANCIAL YEAR 2023 \\n– INTERNATIONAL FINANCIAL REPORTING STANDARDS – IFRS\\nConsolidated Statement of Financial Position \\n275 \\nConsolidated Income Statement \\n277 \\nConsolidated Statement of Comprehensive Income 278 \\n2\\u001a\\u001c \\n281 \\n282 \\n302 \\n351 \\n357 \\n372 \\nConsolidated Statement of Cash Flows \\nStatement of Changes in Equity \\nNotes to the Consolidated FLQDQFLDO\\u0003Statements \\nNotes to the Consolidated Statement of \\nFinancial Position \\nNotes to the Consolidated Income Statement \\nAdditional information \\nDeclaration by the Legal Representatives \\nIndependent Auditor's Report \\n373\\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n275 \\nCONSOLIDATED FINANCIAL STATEMENTS \\n↗ T.01 CONSOLIDATED STATEMENT OF FINANCIAL POSITION \\n \\n \\n31 Dec. 2023\\n31 Dec. 2022\\n \\nNotes\\n€ million\\n€ million\\nASSETS \\n \\n \\n \\nCash and cash equivalents \\n3\\n552.9 \\n463.1 \\nInventories \\n4\\n1,804.4 \\n2,245.1 \\nTrade receivables \\n5\\n1,118.4 \\n1,064.9 \\nIncome tax receivables \\n22\\n90.1 \\n54.0 \\nOther current financial assets \\n6\\n94.9 \\n137.4 \\nOther current assets \\n7\\n270.4 \\n235.9 \\nCurrent assets \\n \\n3,931.1 \\n4,200.4 \\nDeferred tax assets \\n8\\n296.1 \\n295.0 \\nProperty, plant and equipment \\n9\\n685.6 \\n592.2 \\nRight-of-use assets \\n10\\n1,087.7 \\n1,111.3 \\nIntangible assets \\n11\\n530.8 \\n506.5 \\nOther non-current financial assets \\n12\\n83.6 \\n58.4 \\nOther non-current assets \\n12\\n25.6 \\n8.8 \\nNon-current assets \\n \\n2,709.3 \\n2,572.3 \\nTotal assets \\n \\n6,640.4 \\n6,772.7 \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n276 \\n \\n \\n \\n31 Dec. 2023\\n31 Dec. 2022\\n \\nNotes\\n€ million\\n€ million\\nLIABILITIES AND EQUITY \\n \\n \\n \\nCurrent borrowings \\n13\\n145.9 \\n75.9 \\nTrade payables \\n13\\n1,499.8 \\n1,734.9 \\nIncome tax liabilities \\n22\\n79.3 \\n86.8 \\nCurrent lease liabilities \\n10\\n212.4 \\n200.2 \\nOther current provisions \\n16\\n27.7 \\n50.3 \\nOther current financial liabilities \\n13\\n78.6 \\n76.1 \\nOther current liabilities \\n13\\n493.4 \\n618.9 \\nCurrent liabilities \\n \\n2,537.2 \\n2,843.0 \\nNon-current borrowings\\n1 \\n13\\n426.1 \\n251.5 \\nNon-current lease liabilities \\n10\\n1,020.0 \\n1,030.3 \\nDeferred tax liabilities \\n8\\n12.4 \\n42.0 \\nPension provisions \\n15\\n22.5 \\n22.4 \\nOther non-current provisions \\n16\\n27.3 \\n29.5 \\nOther non-current financial liabilities \\n13\\n11.4 \\n13.8 \\nOther non-current liabilities \\n13\\n1.3 \\n1.4 \\nNon-current liabilities \\n \\n1,520.9 \\n1,390.9 \\nSubscribed capital \\n17\\n150.8 \\n150.8 \\nCapital reserve \\n17\\n93.8 \\n90.8 \\nOther reserves \\n17\\n2,330.4 \\n2,253.6 \\nTreasury stock \\n17\\n-21.6 \\n-23.5 \\nEquity attributable to the shareholders of PUMA SE \\n \\n2,553.4 \\n2,471.7 \\nNon-controlling interests \\n17, 28\\n28.9 \\n67.1 \\nTotal equity \\n \\n2,582.3 \\n2,538.8 \\nTotal liabilities and equity \\n \\n6,640.4 \\n6,772.7 \\n \\n \\n \\n \\n \\n1) \\nIn order to improve the communication of decision-relevant information, non-current borrowings are no longer \\nreported under other non-current financial liabilities in the 2023 reporting year, but are reported in a separate \\nbalance sheet item. The previous year's figures have been adjusted accordingly. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n277 \\n↗ T.02 CONSOLIDATED INCOME STATEMENT \\n \\n \\n2023\\n2022\\n \\nNotes\\n€ million\\n€ million\\nSales \\n19, 24\\n8,601.7 \\n8,465.1 \\nCost of sales \\n24\\n-4,615.1 \\n-4,562.3 \\nGross profit \\n24\\n3,986.6 \\n3,902.7 \\nRoyalty and commission income \\n \\n38.5 \\n33.8 \\nOther operating income and expenses \\n20\\n-3,403.5 \\n-3,295.9 \\nthereof impairment losses on trade receivables and other financial \\nassets \\n \\n-12.2 \\n-4.4 \\nOperating Result (EBIT) \\n \\n621.6 \\n640.6 \\nFinancial income \\n21\\n112.7 \\n79.4 \\nFinancial expenses \\n21\\n-256.0 \\n-168.3 \\nFinancial result \\n \\n-143.3 \\n-88.9 \\nEarnings before taxes (EBT) \\n \\n478.3 \\n551.7 \\nTaxes on income \\n22\\n-117.8 \\n-127.4 \\nConsolidated net income of the year \\n \\n360.6 \\n424.4 \\nattributable to: \\n \\n \\n \\nNon-controlling interests \\n17, 28\\n55.7 \\n70.9 \\nNet income attributable to the shareholders of PUMA SE \\n \\n304.9 \\n353.5 \\nEarnings per share (€) \\n23\\n2.03 \\n2.36 \\nEarnings per share (€) - diluted \\n23\\n2.03 \\n2.36 \\nWeighted average number of outstanding shares (million shares) \\n23\\n149.85 \\n149.65 \\nWeighted average number of outstanding shares, diluted (million shares) \\n23\\n149.87 \\n149.66 \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n278 \\n↗ T.03 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME \\n \\n2023\\n2022\\n \\n€ million\\n€ million\\nConsolidated net income of the year before attribution \\n360.6 \\n424.4 \\nCurrency translation differences \\n-87.6 \\n68.5 \\nNet gain/ loss on cash flow hedges, net after tax \\n-18.0 \\n-64.5 \\nItems expected to be reclassified to the income statement in the future \\n-105.6 \\n4.0 \\nRemeasurements of the net defined benefit liability, net after tax \\n-0.8 \\n7.6 \\nNeutral effects financial assets through other comprehensive income (FVOCI), net after tax \\n-0.5 \\n-3.4 \\nItems not expected to be reclassified to the income statement in the future \\n-1.3 \\n4.2 \\nOther comprehensive income \\n-106.9 \\n8.2 \\nComprehensive income \\n253.7 \\n432.6 \\nattributable to: \\n \\n \\nNon-controlling interests \\n54.2 \\n75.0 \\nShareholders of PUMA SE \\n199.6 \\n357.6 \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n279 \\n↗ T.04 CONSOLIDATED STATEMENT OF CASH FLOWS \\n \\n \\n2023\\n2022\\n \\nNotes\\n€ million\\n€ million\\nOperating activities \\n \\n \\n \\nEarnings before tax (EBT) \\n \\n478.3 \\n551.7 \\nAdjustments for: \\n \\n \\n \\nDepreciation and impairment \\n9, 10, 11\\n357.5 \\n358.7 \\nReversal of impairment losses \\n9, 10, 11\\n-11.9 \\n0.0 \\nNon-realized currency gains/losses, net \\n \\n60.1 \\n-43.6 \\nFinancial income \\n21\\n-37.8 \\n-32.3 \\nFinancial expenses \\n21\\n100.7 \\n54.4 \\nGains/losses from the sale of fixed assets \\n \\n-3.9 \\n1.0 \\nChanges to pension provision \\n15\\n-1.5 \\n0.5 \\nOther non cash effected expenses/income \\n \\n22.5 \\n28.6 \\nGross cash flow \\n25\\n964.1 \\n918.9 \\nChanges in receivables and other current assets \\n5, 6, 7\\n-153.4 \\n-209.4 \\nChanges in inventories \\n4\\n352.1 \\n-747.0 \\nChanges in trade payables and other current liabilities \\n13\\n-327.9 \\n613.1 \\nNet cash from operational business activities \\n \\n834.9 \\n575.6 \\nIncome taxes paid \\n22\\n-181.3 \\n-157.4 \\nNet cash from operating activities \\n25\\n653.6 \\n418.3 \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n280 \\n \\n \\n2023\\n2022\\n \\nNotes\\n€ million\\n€ million\\nInvesting activities \\n \\n \\n \\nPurchase of property and equipment \\n9, 11\\n-300.4 \\n-263.6 \\nProceeds from sale of property and equipment \\n \\n14.3 \\n1.3 \\nPayment for other assets \\n12\\n-36.3 \\n-10.8 \\nInterest received \\n21\\n37.8 \\n32.3 \\nNet cash used in investing activities \\n \\n-284.6 \\n-240.8 \\nFinancing activities \\n \\n \\n \\nRepayment of lease liabilities \\n10\\n-208.0 \\n-190.0 \\nRepayment of current borrowings \\n13\\n-59.1 \\n-9.5 \\nRaising of current borrowings \\n13\\n0.0 \\n17.9 \\nRepayment of non-current borrowings \\n13\\n0.0 \\n-60.0 \\nRaising of non-current borrowings \\n13\\n299.6 \\n0.0 \\nDividend payments to shareholders of PUMA SE \\n17\\n-122.8 \\n-107.7 \\nDividend payments to non-controlling interests \\n17, 28\\n-92.4 \\n-73.3 \\nInterest paid \\n21\\n-94.3 \\n-53.8 \\nNet cash used in financing activities \\n25\\n-277.1 \\n-476.4 \\nExchange rate-related changes in cash and cash equivalents \\n \\n-2.1 \\n4.4 \\nChange in cash and cash equivalents \\n \\n89.8 \\n-294.4 \\nCash and cash equivalents at beginning of the financial year \\n \\n463.1 \\n757.5 \\nCash and cash equivalents at the end of the financial year \\n3, 25\\n552.9 \\n463.1 \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n281 \\n↗ T.05 STATEMENT OF CHANGES IN EQUITY (in € million) \\n \\n \\n \\nOther reserves \\n \\n \\n \\n \\n \\nSubscribed\\ncapital\\nCapital\\nreserve\\nRevenue\\nreserves incl.\\nretained\\nearnings\\nDifference\\nfrom currency\\nconversion\\nCash flow \\nhedges\\nTreasury stock\\nShareholders' \\nequity\\nNon-\\ncontrolling \\ninterests\\nTOTAL equity\\n1 January 2022 \\n150.8 \\n86.4\\n2,245.4\\n-320.6 \\n78.1 \\n-26.9 \\n2,213.3 \\n65.2 \\n2,278.5 \\nConsolidated net income of the year \\n \\n \\n353.5\\n \\n \\n \\n353.5 \\n70.9 \\n424.4 \\nOther comprehensive income \\n4.2\\n63.8 \\n-63.9 \\n4.1 \\n4.1 \\n8.2 \\nComprehensive income \\n357.7\\n63.8 \\n-63.9 \\n357.6 \\n75.0 \\n432.6 \\nDividends paid to shareholders of PUMA SE / non-\\ncontrolling interests \\n \\n \\n-107.7\\n \\n \\n \\n-107.7 \\n-75.3 \\n-183.0 \\nShare-based payment and Utilization/Issue of \\ntreasury stock \\n \\n4.4\\n \\n \\n \\n3.4 \\n7.7 \\n \\n7.7 \\nTransaction with shareholders \\n \\n \\n0.9\\n \\n \\n \\n0.9 \\n2.2 \\n3.1 \\n31 December 2022/ 1 January 2023 \\n150.8 \\n90.8\\n2,496.2\\n-256.8 \\n14.2 \\n-23.5 \\n2,471.7 \\n67.1 \\n2,538.8 \\nConsolidated net income of the year \\n \\n \\n304.9\\n \\n \\n \\n304.9 \\n55.7 \\n360.6 \\nOther comprehensive income \\n-1.3\\n-85.9 \\n-18.1 \\n-105.3 \\n-1.5 \\n-106.9 \\nComprehensive income \\n303.6\\n-85.9 \\n-18.1 \\n199.6 \\n54.2 \\n253.7 \\nDividends paid to shareholders of PUMA SE / non-\\ncontrolling interests \\n \\n \\n-122.8\\n \\n \\n \\n-122.8 \\n-92.4 \\n-215.3 \\nShare-based payment and Utilization/Issue of \\ntreasury stock \\n \\n3.0\\n \\n \\n \\n1.9 \\n4.9 \\n \\n4.9 \\nTransaction with shareholders \\n \\n \\n \\n \\n \\n0.1 \\n0.1 \\n31 December 2023 \\n150.8 \\n93.8\\n2,677.0\\n-342.7 \\n-3.9 \\n-21.6 \\n2,553.4 \\n28.9 \\n2,582.3 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n282 \\nNOTES TO THE CONSOLIDATED FINANCIAL \\nSTATEMENTS \\n1. GENERAL \\nUnder the PUMA and Cobra Golf brand names, PUMA SE and its subsidiaries are engaged in the \\ndevelopment and sale of a broad range of sports and sports lifestyle products, including footwear, apparel \\nand accessories. The company is a European stock corporation (Societas Europaea/SE) and parent company \\nof the PUMA Group; its registered office is on PUMA WAY 1, 91074 Herzogenaurach, Germany. The competent \\nregistry court is in Fürth (Bavaria), the register number is HRB 13085. \\nThe consolidated financial statements of PUMA SE and its subsidiaries (hereinafter referred to in short as \\nthe \\\"Group\\\" or \\\"PUMA\\\") were prepared in accordance with the \\\"International Financial Reporting Standards \\n(IFRS)\\\" accounting standards issued by the International Accounting Standards Board (IASB), as they are to \\nbe applied in the EU, and the supplementary accounting principles to be applied in accordance with Section \\n315e(1) of the German Commercial Code (HGB). All of the IASB standards and interpretations, as they are to \\nbe applied in the EU, which are mandatory for financial years as of 1 January 2023, have been applied. \\nThe items contained in the financial statements of the individual Group companies are measured based on \\nthe currency that corresponds to the currency of the primary economic environment in which the Company \\noperates. The consolidated financial statements are prepared in euros (EUR or €). The presentation of \\namounts in millions of euros with one decimal place may lead to rounding differences since the calculation \\nof individual items is based on figures presented in thousands. \\nThe cost of sales method is used for the consolidated income statement. \\nThe following new or amended standards and interpretations have been used for the first time in the \\ncurrent financial year: \\n↗ T.06 NEW AND AMENDED STANDARDS AND INTERPRETATIONS \\nStandard \\nTitle \\nFirst-time adoption in the current financial \\nyear \\n \\nIFRS 17 (including amendment IFRS 17) \\nInsurance contracts \\nAmendments to IAS 1 \\nDisclosure of accounting policies \\nAmendments to IAS 8 \\nDefinition of accounting estimates \\nAmendments to IAS 12 \\nDeferred taxes relating to assets and liabilities from a single transaction \\nAmendments to IFRS 17 \\nFirst-time application of IFRS 17 and IFRS 9 – Comparative information \\nAmendments to IAS 12 \\nInternational tax reform – Pillar Two model rules \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n283 \\nThe amendments to the standards and interpretations described below, which were to be initially adopted \\nas of 1 January 2023, did not materially affect the PUMA consolidated financial statements. \\nThe IFRS 17 standard regulates the accounting treatment of insurance contracts and replaces the previously \\nvalid transitional standard IFRS 4. The scope of application includes insurance contracts, reinsurance \\ncontracts and investment contracts with discretionary participation features. The amendment to IFRS 17 \\npostponed the date of first mandatory application of IFRS 17 to 1 January 2023. These amendments have no \\neffect on the PUMA consolidated financial statements. \\nThe amendments to IAS 1 and IFRS Guideline Document 2 are intended to assist preparers in deciding which \\naccounting policies they must disclose in the financial statements. This requires an enterprise to disclose \\nessential information relating to accounting policies rather than just its significant accounting policies. This \\nchange has no material effect on the PUMA consolidated financial statements. \\nThe amendment to IAS 8 is intended to help distinguish between accounting policies and accounting-related \\nestimates. The definition of a change in accounting estimates has been replaced by a definition of \\naccounting estimates. According to the new definition, accounting-related estimates are \\\"monetary \\namounts in financial statements that are subject to measurement uncertainty\\\". This change has no effect on \\nthe PUMA consolidated financial statements. \\nThe amendment to IAS 12 narrows the scope of the \\\"initial recognition exemption\\\" under which no deferred \\ntax assets or liabilities are to be recognised at the time of recognition of an asset or liability. If temporary \\ndifferences of the same amount are simultaneously deductible and taxable in a single transaction, they are \\nno longer covered by the exception, meaning that deferred tax assets and liabilities must be recognised. \\nThis change does not materially affect PUMA's net assets, financial position and results of operations. \\nHowever, the amendment to IAS 12 leads to a change in the disclosures to be made in the notes to the \\nconsolidated financial statements. \\nThe amendment to IFRS 17 concerns companies that apply IFRS 17 and IFRS 9 simultaneously for the first \\ntime. The amendment allows an entity to present comparative information about a financial asset in such a \\nway that the IFRS 9 rules on classification and measurement would have been previously applied to that \\nfinancial asset. This change has no effect on the PUMA consolidated financial statements. \\nThe amendments to IAS 12 introduce a temporary exemption for deferred tax accounting in the framework of \\nthe implementation of the global minimum taxation (\\\"OECD Pillar Two Scheme\\\"). This should help to ensure \\nthe consistency of financial statements while facilitating implementation of the rules. Targeted disclosure \\nrequirements will also be introduced to help investors better understand the impact of the reform on the \\ncompany, especially before the country-specific legislation implementing minimum taxation enters into \\nforce. This change has no material effect on the PUMA consolidated financial statements. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n284 \\nNEW, BUT NOT YET MANDATORY, STANDARDS AND INTERPRETATIONS \\nThe following standards and interpretations have been released but will only become effective in later \\nreporting periods and are not applied earlier by the Group: \\n↗ T.07 NEW, BUT NOT YET MANDATORY, STANDARDS AND INTERPRETATIONS \\nStandard \\nTitle \\nDate of adoption* \\nPlanned adoption \\nEndorsed \\n \\n \\n \\nAmendments to IFRS 16 \\nLease liabilities as part of a \\nsale and leaseback \\ntransaction \\n01/01/2024 \\n01/01/2024 \\n \\n \\n \\n \\nEndorsement pending \\n \\n \\n \\nAmendments to IAS 1 \\nClassification of liabilities as \\ncurrent or non-current \\n01/01/2024 \\n01/01/2024 \\nAmendments to IAS 1 \\nNon-current liabilities with \\ncovenants \\n01/01/2024 \\n01/01/2024 \\nAmendments to IAS 7 and \\nIFRS 7 \\nSupplier financing \\nagreements \\n01/01/2024 \\n01/01/2024 \\nAmendments to IAS 21 \\nLack of exchangeability \\n01/01/2025 \\n01/01/2025 \\nAmendments to IFRS 10 and \\nIAS 28 \\nSale or contribution of \\nassets \\nPostponed indefinitely \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n* \\nAdjusted by EU endorsement, if applicable \\nPUMA does not expect that these amendments will have any significant effects on the net assets, financial \\nposition and results of operations. However, the amendments to IAS 7 and IFRS 17 concerning supplier \\nfinancing agreements expand the scope of future disclosures in the notes to the consolidated financial \\nstatements. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n285 \\n2. SIGNIFICANT CONSOLIDATION, ACCOUNTING AND VALUATION PRINCIPLES \\nCONSOLIDATION PRINCIPLES \\nThe consolidated financial statements were prepared as of 31 December 2023, the reporting date of the \\nannual financial statements of the PUMA SE parent company, on the basis of uniform accounting and \\nvaluation principles according to IFRS, as applied in the EU. \\nGROUP OF CONSOLIDATED COMPANIES \\nIn addition to PUMA SE, the consolidated financial statements include all subsidiaries in which PUMA SE \\ndirectly or indirectly holds existing rights that give it the current ability to direct the relevant activities. At \\npresent, control of all Group companies is based on a direct or indirect majority of voting rights. \\nAssociated companies are generally accounted for in the Group using the equity method. As of 31 \\nDecember 2023, however, the Group does not hold any investments in associated companies. \\nThe changes in the number of Group companies (including the parent company PUMA SE) in the financial \\nyear 2023 were as follows: \\n↗ T.08 GROUP OF CONSOLIDATED COMPANIES \\nAs of \\n31 Dec. 2022\\n100\\nFormation of companies \\n \\n1\\nDisposal of companies \\n \\n-1\\nAs of \\n31 Dec. 2023\\n100\\n \\n \\n \\n \\nThe addition to the group of consolidated companies relates to the formation of PUMA Card Services NA \\nLLC, USA. \\nThe disposal in the group of consolidated companies concerns the merger of PUMA Sports SEA Trading Pte. \\nLtd., Singapore within the group of consolidated companies. \\nThe changes in the group of consolidated companies did not have a significant effect on the net assets, \\nfinancial position and results of operations. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n286 \\nThe Group companies are allocated to regions as follows: \\n↗ T.09 LIST OF SHAREHOLDINGS \\nAS OF 31 DECEMBER 2023 \\n \\n \\n \\n \\nNo. \\nCompanies/Legal Entities \\nCountry \\nCity \\nShareholder \\nShare of capital \\n \\nParent company \\n \\n \\n \\n \\n1. \\nPUMA SE \\nGermany \\nHerzogenaurach \\n \\n \\n \\nEMEA \\n \\n \\n \\n \\n2. \\nAustria Puma Dassler Gesellschaft m.b.H. \\nAustria \\nSalzburg \\ndirect \\n100% \\n3. \\nstichd austria gmbh \\nAustria \\nSalzburg \\nindirect \\n100% \\n4. \\nPuma Czech Republic s.r.o. \\nCzech Republic \\nPrague \\nindirect \\n100% \\n5. \\nPUMA DENMARK A/S \\nDenmark \\nAarhus \\nindirect \\n100% \\n6. \\nPUMA Estonia OÜ \\nEstonia \\nTallinn \\nindirect \\n100% \\n7. \\nPUMA Finland Oy \\nFinland \\nHelsinki \\nindirect \\n100% \\n8. \\nPUMA FRANCE SAS \\nFrance \\nStrasbourg \\nindirect \\n100% \\n9. \\nstichd france SAS \\nFrance \\nBoulogne Billancourt \\nindirect \\n100% \\n10. \\nPUMA International Trading GmbH \\nGermany \\nHerzogenaurach \\ndirect \\n100% \\n11. \\nPUMA Europe GmbH \\nGermany \\nHerzogenaurach \\ndirect \\n100% \\n12. \\nPUMA Sprint GmbH \\nGermany \\nHerzogenaurach \\ndirect \\n100% \\n13. \\nPUMA Mostro GmbH \\nGermany \\nHerzogenaurach \\nindirect \\n100% \\n14. \\nPUMA Blue Sea GmbH \\nGermany \\nHerzogenaurach \\nindirect \\n100% \\n15. \\nstichd germany gmbh \\nGermany \\nDüsseldorf \\nindirect \\n100% \\n16. \\nPUMA UNITED KINGDOM LTD \\nGreat Britain \\nLondon \\nindirect \\n100% \\n17. \\nPUMA PREMIER LTD \\nGreat Britain \\nLondon \\nindirect \\n100% \\n18. \\nSTICHD UK LTD \\nGreat Britain \\nMansfield \\nindirect \\n100% \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n287 \\nAS OF 31 DECEMBER 2023 \\n \\n \\n \\n \\n19. \\nSTICHD SPORTMERCHANDISING UK LTD \\nGreat Britain \\nLondon \\nindirect \\n100% \\n20. \\nGENESIS GROUP INTERNATIONAL LIMITED \\nGreat Britain \\nManchester \\ndirect \\n100% \\n21. \\nSport Equipment Hellas S. A. of Footwear, Apparel and Sportswear u.Li. \\nGreece \\nAthens \\ndirect \\n100%\\n1) \\n22. \\nPUMA ITALIA S.R.L. \\nItaly \\nAssago \\nindirect \\n100% \\n23. \\nSTICHD ITALY SRL \\nItaly \\nAssago \\nindirect \\n100% \\n24. \\nPuma Sport Israel Ltd. In Liq \\nIsrael \\nHertzeliya \\nindirect \\n100% \\n25. \\nPuma Benelux B.V. \\nNetherlands \\nLeusden \\ndirect \\n100% \\n26. \\nPUMA International Sports Marketing B.V. \\nNetherlands \\nLeusden \\ndirect \\n100% \\n27. \\nstichd group B.V. \\nNetherlands \\ns-Hertogenbosch \\ndirect \\n100% \\n28. \\nstichd international B.V. \\nNetherlands \\ns-Hertogenbosch \\nindirect \\n100% \\n29. \\nstichd sportmerchandising B.V. \\nNetherlands \\ns-Hertogenbosch \\nindirect \\n100% \\n30. \\nstichd B.V. \\nNetherlands \\ns-Hertogenbosch \\nindirect \\n100% \\n31. \\nstichd logistics B.V. \\nNetherlands \\ns-Hertogenbosch \\nindirect \\n100% \\n32. \\nstichd licensing B.V. \\nNetherlands \\ns-Hertogenbosch \\nindirect \\n100% \\n33. \\nPUMA NORWAY AS \\nNorway \\nFornebu \\nindirect \\n100% \\n34. \\nPUMA POLSKA sp. z o.o. \\nPoland \\nWarsaw \\nindirect \\n100% \\n35. \\nPUMA SPORTS ROMANIA SRL \\nRomania \\nVoluntari \\nindirect \\n100% \\n36. \\nPUMA-RUS o.o.o. \\nRussia \\nMoscow \\nindirect \\n100% \\n37. \\nPUMA SPORTS DISTRIBUTORS (PTY) LTD \\nSouth Africa \\nCape Town \\nindirect \\n100% \\n38. \\nPUMA SPORTS S A (PTY) LTD \\nSouth Africa \\nCape Town \\nindirect \\n100% \\n39. \\nPUMA IBERIA SLU \\nSpain \\nMadrid \\ndirect \\n100% \\n40. \\nSTICHDIBERIA S.L. \\nSpain \\nCornella de Llobregat \\nindirect \\n100% \\n41. \\nNrotert AB \\nSweden \\nHelsingborg \\ndirect \\n100% \\n42. \\nPUMA Nordic AB \\nSweden \\nHelsingborg \\nindirect \\n100% \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n288 \\nAS OF 31 DECEMBER 2023 \\n \\n \\n \\n \\n43. \\nNrotert Sweden AB \\nSweden \\nHelsingborg \\nindirect \\n100% \\n44. \\nstichd nordic AB \\nSweden \\nHelsingborg \\nindirect \\n100% \\n45. \\nMOUNT PUMA AG \\nSwitzerland \\nOensingen \\ndirect \\n100% \\n46. \\nPuma Retail AG \\nSwitzerland \\nOensingen \\nindirect \\n100% \\n47. \\nstichd switzerland ag \\nSwitzerland \\nEgerkingen \\nindirect \\n100% \\n48. \\nPUMA Spor Giyim Sanayi ve Ticaret A.S. \\nTürkiye \\nIstanbul \\nindirect \\n100% \\n49. \\nPUMA UKRAINE LIMITED LIABILITY COMPANY \\nUkraine \\nKiew \\nindirect \\n100% \\n50. \\nPUMA Middle East FZ-LLC \\nUnited Arab Emirates \\nDubai \\nindirect \\n100% \\n51. \\nPUMA UAE (L.L.C) \\nUnited Arab Emirates \\nDubai \\nindirect \\n100% \\n \\nAmericas \\n \\n \\n \\n \\n52. \\nPUMA Sports Argentina S.A. (former Unisol S.A.) \\nArgentina \\nBuenos Aires \\nindirect \\n100% \\n53. \\nPUMA Sports Ltda. \\nBrazil \\nSao Paulo \\nindirect \\n100% \\n54. \\nPUMA Canada, Inc. \\nCanada \\nToronto \\nindirect \\n100% \\n55. \\nPUMA United Canada ULC \\nCanada \\nVancouver \\nindirect \\n51% \\n56. \\nPUMA CHILE SpA \\nChile \\nSantiago \\ndirect \\n100% \\n57. \\nPUMA SERVICIOS SpA \\nChile \\nSantiago \\nindirect \\n100% \\n58. \\nPUMA México Sport, S.A. de C.V. \\nMexico \\nMexico City \\ndirect \\n100% \\n59. \\nImportaciones RDS, S.A. de C.V. \\nMexico \\nMexico City \\ndirect \\n100% \\n60. \\nGLOBAL LICENSE STICHD GROUP MEXICO S.A. de C.V. \\nMexico \\nMexico City \\nindirect \\n100% \\n61. \\nImportationes Brand Plus Licensing S.A. de C.V. \\nMexico \\nMexico City \\nindirect \\n100% \\n62. \\nDistribuidora Deportiva PUMA S.A.C. \\nPeru \\nLima \\nindirect \\n100% \\n63. \\nDistribuidora Deportiva PUMA Tacna S.A.C. \\nPeru \\nTacna \\nindirect \\n100% \\n64. \\nPUMA Sports LA S.A. \\nUruguay \\nMontevideo \\ndirect \\n100% \\n65. \\nPUMA Suede Holding, Inc. \\nUSA \\nWilmington \\nindirect \\n100% \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n289 \\nAS OF 31 DECEMBER 2023 \\n \\n \\n \\n \\n66. \\nPUMA North America, Inc. \\nUSA \\nWilmington \\nindirect \\n100% \\n67. \\nCobra Golf Incorporated \\nUSA \\nWilmington \\nindirect \\n100% \\n68. \\nPUMA United Aviation North America LLC \\nUSA \\nWilmington \\nindirect \\n70% \\n69. \\nPUMA United Canada Holding, Inc. \\nUSA \\nWilmington \\nindirect \\n100% \\n70. \\nPUMA United North America LLC \\nUSA \\nDover \\nindirect \\n51% \\n71. \\nJaned Canada, LLC \\nUSA \\nDover \\nindirect \\n51% \\n72. \\nstichd NA, Inc. \\nUSA \\nLewes \\nindirect \\n100% \\n73. \\nPUMA Card Services NA, LLC. \\nUSA \\nPlantation \\nindirect \\n100% \\n \\nAsia/Pacific \\n \\n \\n \\n \\n74. \\nPUMA Australia Pty. Ltd. \\nAustralia \\nMelbourne \\nindirect \\n100% \\n75. \\nWhite Diamond Australia Pty. Ltd. \\nAustralia \\nMelbourne \\nindirect \\n100% \\n76. \\nWhite Diamond Properties Pty. Ltd. \\nAustralia \\nMelbourne \\nindirect \\n100% \\n77. \\nPUMA China Ltd. (彪⻢（上海）商贸有限公司) \\nChina \\nShanghai \\nindirect \\n100% \\n78. \\nstichd Trading (Shanghai) Co., Ltd. (斯梯起特贸易（上海）有限公司) \\nChina \\nShanghai \\nindirect \\n100% \\n79. \\nGuangzhou World Cat Information Consulting Services Company Ltd. (广州寰\\n彪信息咨询服务有限公司) \\nChina \\nGuangzhou \\nindirect \\n100% \\n80. \\nWorld Cat Ltd. (寰彪有限公司) \\nChina \\nHong Kong \\ndirect \\n100% \\n81. \\nDevelopment Services Ltd. \\nChina \\nHong Kong \\ndirect \\n100% \\n82. \\nPUMA International Trading Services Ltd. \\nChina \\nHong Kong \\nindirect \\n100% \\n83. \\nPUMA ASIA PACIFIC LTD (彪馬亞太區有限公司) \\nChina \\nHong Kong \\ndirect \\n100% \\n84. \\nPUMA Hong Kong Ltd. (彪馬香港有限公司) \\nChina \\nHong Kong \\nindirect \\n100% \\n85. \\nstichd Limited \\nChina \\nHong Kong \\nindirect \\n100% \\n86. \\nPUMA Sports India Private Ltd. \\nIndia \\nBangalore \\nindirect \\n100% \\n87. \\nPT PUMA Cat Indonesia \\nIndonesia \\nJakarta \\nindirect \\n100% \\n88. \\nPT PUMA Sports Indonesia \\nIndonesia \\nJakarta \\nindirect \\n100% \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n \\n290 \\nAS OF 31 DECEMBER 2023 \\n \\n \\n \\n \\n89. \\nPUMA Japan K.K. (プーマ ジャパン株式会社) \\nJapan \\nTokyo \\nindirect \\n100% \\n90. \\nPUMA Korea Ltd. (푸마코리아 유한회사) \\n(South) Korea \\nSeoul \\ndirect \\n100% \\n91. \\nStichd Korea Ltd \\n(South) Korea \\nIncheon \\nindirect \\n100% \\n92. \\nPUMA Sports Goods Sdn. Bhd. \\nMalaysia \\nPetaling Jaya \\nindirect \\n100% \\n93. \\nSTICHD SOUTHEAST ASIA SDN. BHD. \\nMalaysia \\nKuala Lumpur \\nindirect \\n100% \\n94. \\nPUMA New Zealand Ltd. \\nNew Zealand \\nAuckland \\nindirect \\n100% \\n95. \\nPUMANILA IT SERVICES INC. \\nPhilippines \\nCity of Makati \\nindirect \\n100% \\n96. \\nPUMA Sports Philippines Inc. \\nPhilippines \\nCity of Makati \\nindirect \\n100% \\n97. \\nPUMA SOUTH EAST ASIA PTE. LTD. \\nSingapore \\n \\nindirect \\n100% \\n98. \\nPUMA Taiwan Sports Ltd. (台灣彪馬股份有限公司） \\nChina (Taiwan) \\nTaipei \\nindirect \\n100% \\n99. \\nPUMA Sports (Thailand) Co., Ltd. \\nThailand \\nBangkok \\nindirect \\n100% \\n100. \\nWorld Cat Vietnam Sourcing & Development Services Company Limited \\n(CÔNG TY TNHH DͥCH VͿ PHÁT TRI͝N & NGUͭN CUNG ΃NG WORLD CAT \\nVI͡T NAM) \\nVietnam \\nHo Chi Minh City \\nindirect \\n100% \\n \\n \\n \\n \\n \\n \\n \\n1) \\nsubsidiaries which are assigned to be economically 100% PUMA Group \\nPUMA Mostro GmbH, PUMA Blue Sea GmbH and PUMA Sprint GmbH have made use of the exemption provision under Section 264(3) of the German Commercial Code \\n(HGB). PUMA Europe GmbH and PUMA International Trading GmbH have also made use of the exemption provision under Section 264(3) HGB, but waive the exemption \\nfrom the third subsection. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n291 \\nCURRENCY CONVERSION \\nIn general, monetary items in foreign currencies are converted in the individual financial statements of the \\nGroup companies at the exchange rate valid on the balance sheet date. Any resulting currency gains and \\nlosses are immediately recognised in the income statement. Non-monetary items are converted at \\nhistorical acquisition and manufacturing cost. \\nThe assets and liabilities of foreign subsidiaries, whose functional currency is not the euro, have been \\nconverted to euros at the exchange rates valid on the balance sheet date. Expenses and income have been \\nconverted at the annual average exchange rates. Any differences resulting from the currency conversion of \\nnet assets relative to exchange rates that had changed in comparison with the previous year were adjusted \\ndirectly in other comprehensive income. \\nThe significant conversion rates per euro are as follows: \\n↗ T.10 SIGNIFICANT CONVERSION RATES \\n \\n2023 \\n2022 \\nCurrency \\nReporting date\\nexchange rate\\nAverage\\nexchange rate\\nReporting date\\nexchange rate\\nAverage \\nexchange rate \\nUSD \\n1.1050\\n1.0813\\n1.0666\\n1.0530 \\nCNY \\n7.8509\\n7.6600\\n7.3582\\n7.0788 \\nJPY \\n156.3300\\n151.9903\\n140.6600\\n138.0274 \\nMXN \\n18.7231\\n19.1830\\n20.8560\\n21.1869 \\nARS* \\n892.9166\\n-\\n188.7249\\n- \\nGBP \\n0.8691\\n0.8698\\n0.8869\\n0.8528 \\n \\n \\n \\n \\n \\n \\n* \\nDue to the application of accounting for hyperinflationary economies in Argentina, all items in the financial \\nstatements are converted at the exchange rate applicable on the reporting date. \\n \\nArgentina and Türkiye are in a hyperinflation environment. In 2022, the subsidiaries whose functional \\ncurrency is the Argentine peso or the Turkish lira applied the accounting for hyperinflationary economies in \\naccordance with IAS 29 for the first time, with retroactive effect from 1 January 2022. The carrying amounts \\nof non-monetary assets and liabilities, shareholders' equity and other comprehensive income are translated \\ninto the unit of measurement applicable at the balance sheet date and thus adjusted to reflect price \\nchanges. The financial statements are based on the concept of historical acquisition and/or production \\ncosts. The exchange rate as of 31 December 2023 was used for conversion into the reporting currency, the \\neuro, for all items. \\nGains and losses on the net monetary position are included in the financial result. In the financial year 2023, \\nthe net profit from the monetary items amounted to € 7.7 million (previous year: € 0.9 million). The amount \\nalso includes interest income from invested liquid funds in accordance with IAS 29.28. \\nThe price index used for Türkiye as of 31 December 2023 was 1,859.4 (31 December 2022: 1,128.5) and is based \\non the consumer price index. The general price index used for Argentina as of 31 December 2023 was \\n3,500.4 (31 December 2022: 1,134.3). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n292 \\nACCOUNTING AND VALUATION PRINCIPLES \\nFINANCIAL INSTRUMENTS \\nFinancial instruments are classified and recognised in accordance with IFRS 9. Acquisitions and disposals of \\nfinancial assets, with the exception of trade receivables, are initially recognised on the settlement date and \\nare recorded at fair value. \\nFor investments (equity instruments), IFRS 9 allows a measurement at fair value through other \\ncomprehensive income (FVOCI) under certain conditions. If these investments, however, are disposed of or \\nadjusted in value, the gains and losses from these investments which were not realised up to this point are \\nreclassified to retained earnings in accordance with IFRS 9. \\nDERIVATIVE FINANCIAL INSTRUMENTS/HEDGE ACCOUNTING \\nIn relation to the accounting of hedge relationships, PUMA made use of the option to continue applying the \\nrules of IAS 39 for hedge accounting. \\nDerivative financial instruments are recognised at fair value at the time a contract is entered into and \\nthereafter. At the time a hedging instrument is concluded, PUMA classifies the derivatives either as hedges \\nof a planned transaction and hedging variable interest flows from the promissory note loans (cash flow \\nhedge accounting), or as hedges of the fair value of a recognised asset or liability (fair value hedge). \\nAt the time when the transaction is concluded, the hedging relationship between the hedging instrument \\nand the underlying transaction as well as the purpose of risk management and the underlying strategy are \\ndocumented. In addition, assessments as to whether the derivatives used in the hedge accounting \\ncompensate effectively for a change in the fair value or the cash flow of the underlying transaction are \\ndocumented at the beginning of the hedging relationship and continuously thereafter. \\nThe Group designates the spot rate for forward transactions and the intrinsic value for options contracts. \\nThe interest component and/or fair value are excluded from the designation of the hedging instrument and \\nare recorded in the financial result through profit or loss. \\nThe Group determines the existence of an economic relationship between the hedging instrument and the \\nhedged underlying transaction on the basis of the key valuation parameters, such as the reference interest \\nrate, the currency, the amount and the time of their respective cash flows (critical terms match method). \\nThe Group uses the cumulative dollar offset method to assess whether the derivative designated in each \\nhedging relationship is expected to be prospectively effective and retroactively effective in relation to \\noffsetting changes in the cash flows of the hedged underlying transaction. \\nThe main reason for ineffectiveness is the decline or loss of hedged transactions in these hedging \\nrelationships. \\nChanges in the market value of derivatives that are intended and suitable for cash flow hedging and that \\nprove to be effective are adjusted directly in other comprehensive income, taking into account deferred \\ntaxes. If there is no complete effectiveness, the ineffective part is recognised in the income statement. The \\namounts recognised in other comprehensive income are recognised in the income statement during the \\nsame period in which the hedged planned transaction affects the income statement. If, however, a hedged \\nfuture transaction results in the recognition of a non-financial asset or a liability, gains or losses previously \\nrecorded in other comprehensive income are included in the initial measurement of the acquisition costs of \\nthe respective asset or liability. \\nChanges in the market value of derivatives that qualify for and are designated as fair value hedges are \\nrecognised directly in the consolidated income statement, together with changes in the fair value of the \\nunderlying transaction attributable to the hedged risk. The changes in the market value of the derivatives \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n293 \\nand the change in the underlying transaction attributable to the hedged risk are reported in the \\nconsolidated income statement under the item relating to the underlying transaction. \\nThe fair values of the derivative instruments used to secure planned transactions and for hedging the \\nvariable cash flows from the promissory note loans (cash flow hedge accounting) and to secure the fair \\nvalue of a recognised asset or liability (fair value hedge) are shown under \\\"Other current and non-current \\nfinancial assets or liabilities\\\". \\nPUMA AS LESSEE \\nThe leases for which PUMA acts as a lessee are identified at the individual contract level. For these leases, \\nPUMA recognises a right-of-use asset and a respective lease liability, with the exception of short-term \\nleases (defined as leases with a term of no more than 12 months) and low-value lease agreements (with a \\nvalue of less than € 5,000 at contract conclusion). In the case of a short-term lease or low-value lease, the \\nGroup recognises the lease payments on a straight-line basis over the term of the lease agreement as other \\noperating expense. \\nIn addition, right-of-use assets are not recognised for intangible assets. PUMA has made use of the option \\nand decided not to apply IFRS 16 with regard to leases for intangible assets. \\nThe lease liability at initial recognition is measured at the present value of the not yet paid lease payments \\nat the beginning of the lease agreement. The present value is calculated using the incremental borrowing \\nrate, as the interest rate implicit in the lease is usually not known. \\nA number of lease agreements, particularly for real estate properties, contain extension and termination \\noptions. When determining agreement terms, all facts and circumstances are taken into account that offer a \\nfinancial incentive to exercise the extension option or not to exercise the termination option. The changes in \\nthe term of a lease due to the exercise or non-exercise of such options are only taken into account for the \\nagreement term if they are sufficiently certain. \\nThe lease liability is recognised as a separate line item on the consolidated balance sheet. \\nThe right-of-use assets comprise the respective lease liability as part of initial valuation. Lease instalments \\nthat are paid before or at the beginning of the lease are added. Lease incentives received from the lessor \\nare deducted and initial direct costs are included. If dismantling obligations exist with regard to the leased \\nassets, they are included in the valuation of the right-of-use assets. The subsequent valuation of the right-\\nof-use assets is at acquisition cost less accumulated depreciation and impairment losses. \\nThe right-of-use assets are generally depreciated over the term of the lease. If the useful life of the asset \\nunderlying the lease is shorter, this limits the depreciation period accordingly. Depreciation starts with the \\ncommencement of the lease. \\nAs part of the practical expedient, IFRS 16 permits dispensing with a separation between non-lease \\ncomponents and lease components. With regard to land and buildings, PUMA generally does not apply the \\npractical expedient, meaning that the right-of-use assets relating to land and buildings only contain leasing \\ncomponents. With regard to other right-of-use assets (comprising technical equipment & machines and \\nmotor vehicles), the practical expedient is generally applied, the result of which is that the leasing \\ncomponents and non-leasing components are both recognised. \\nThe right-of-use assets are recognised as a separate line item in the consolidated balance sheet. \\nThe rights of use are subject to the impairment regulations pursuant to IAS 36. As a general rule, the right-\\nof-use assets are tested for impairment (impairment test) if there is any indication that the value of the \\nasset could be impaired. The right-of-use assets, in particular in connection with the Group's own retail \\nstores, are subjected to an impairment test if there are indicators or changes in planning assumptions that \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n294 \\nsuggest that the carrying amount of the assets may not be recoverable. To this end, a triggering event test \\nof all retail stores, each of which is a separate cash-generating unit, is carried out after preparation of the \\nannual budget planning or on an ad-hoc basis. \\nFor the purposes of the triggering event test, the recoverable amount of the respective retail stores is \\ndetermined as a value in use using a simplified discounted cash flow method. The value in use is \\ndetermined on the basis of the planned cash flows for the retail stores according to the budget, which is \\nprepared on a bottom-up basis and approved by management. The forecast period is derived from the \\nexpected useful lives of the respective retail store and is reviewed annually. Following the bottom-up \\nbudget, revenue and cost developments are used as a basis for the remaining useful life, the growth rate of \\nwhich is based on expected nominal retail growth. Growth rates in the single-digit percentage range are \\nexpected for all retail stores over the three-year detailed planning period. In calculating the value in use of \\nretail transactions, cash flows in non-inflationary countries were measured at a weighted cost of capital \\nrate of between 8.8% and 38.0% (previous year: between 8.2% and 25.3%) and the cash flows of retail \\ntransactions in the two high-inflation countries with a weighted cost of capital between 31.2% and 145.0% \\n(previous year: between 20.0% and 62.7%). This was based on a risk-free interest rate on equivalent term \\nstructures of 3.1% (previous year: 2.3%) and a market risk premium of 7.0% (previous year: 7.3%) are used as \\na basis. \\nIf, in the triggering event test, the carrying amount of the retail store assets exceeds the simplified value in \\nuse, the recoverable amount of this cash-generating unit is calculated with the discounted cash flow \\nmethod using the above cost of capital rates. This is based on the individual planning of cash flows for the \\nretail store. If an impairment arises, the right of use is impaired first. \\nIf there are indications that retail stores for which impairment has been recorded in the past have been able \\nto achieve a turnaround and that their rights of use are recoverable, the impairment is reversed up to a \\nmaximum of the amount of amortised costs. \\nIf there is an impairment loss or a reversal of an impairment loss, this is allocated to the central area in the \\nsegment reporting under IFRS 8. However, the impaired assets are reported in the relevant operating \\nsegments. \\nPUMA AS LESSOR \\nIn financial year 2023, the accounting principles of IFRS 16 were applied for PUMA as a lessor for the first \\ntime. If PUMA acts as a lessor, it is determined at the beginning of the lease whether it is a finance lease or \\nan operating lease. In order to classify the lease agreement, PUMA makes an overall assessment of \\nwhether the lease essentially transfers all the risks and benefits associated with ownership of the \\nunderlying asset. If this is the case, it is classified as a finance lease. If not, it is classed as an operating \\nlease. Various indicators are taken into account as part of this assessment, such as whether the lease ratio \\ncomprises the majority of the economic useful life of the underlying asset. At our discretion, the leases in \\nwhich PUMA acts as an intermediate lessor are in most cases finance leases, as subletting always covers \\nmost of the term of the main lease. If PUMA acts as an interim lessor, the shares in the main lease contract \\nand the sub-lease contract are accounted for separately. \\nIn the case of finance leases, a net investment (receivable) equal to the discounted future rental payments \\nto be received is recognised in the balance sheet and reported under other assets (without inclusion in \\nworking capital). The marginal debt interest rate is used to determine the discount, as the interest rate \\nunderlying the lease is generally unknown. Interest income from finance leases is reported in the cash flow \\nfrom investing activities. \\nIf the lease is classified as operating leases, the lease payments are immediately recognised in profit or loss \\nas rental income. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n295 \\nCASH AND CASH EQUIVALENTS \\nCash and cash equivalents include cash and bank balances. This also includes free cash and cash \\nequivalents that are invested as a fixed-term deposit with a term of up to three months. The total amount of \\ncash and cash equivalents is consistent with the cash and cash equivalents stated in the cash flow \\nstatement. \\nCash and cash equivalents are measured at amortised cost. They are subject to the impairment \\nrequirements in accordance with IFRS 9 \\\"Financial Instruments\\\". PUMA monitors the credit risk of these \\nfinancial instruments taking into account the economic situation, external credit rating and/or premiums for \\ncredit default swaps (CDS) of other financial institutions. The credit risk from cash and cash equivalents is \\nclassified as immaterial, due to the relatively short terms and the investment-grade credit rating of the \\ncounterparty, which signals a low probability of default for the financial instruments. \\nINVENTORIES \\nThe Group procures inventories primarily from third parties and these are reported as goods within \\ninventories. To a small extent, footwear and golf clubs are produced in-house, which are reported as \\nfinished goods together with the goods within the inventories. \\nInventories are measured at acquisition or manufacturing cost or at the lower net realisable values derived \\nfrom the selling price at the balance sheet date. The acquisition cost of merchandise is determined using an \\naveraging method. Value adjustments are adequately recorded, depending on age, seasonality and \\nrealisable market prices. \\nTRADE RECEIVABLES \\nTrade receivables are initially measured at the transaction price and subsequently at amortised cost with \\ndeduction of value adjustments, in the form of a provision for risks. \\nWhen determining the provision for risks for trade receivables, PUMA uniformly applies the simplified \\nmethod in order to determine the expected credit losses over the remaining lifetime of the trade receivables \\n(called \\\"lifetime expected credit losses\\\") in accordance with the provisions of IFRS 9 \\\"Financial \\nInstruments\\\". For this, trade receivables are classified by geographic region into suitable groups with \\nshared credit risk characteristics. The expected credit losses are calculated using a matrix that presents \\nthe age structure of the receivables and depicts a likelihood of loss for the individual maturity bands of the \\nreceivables on the basis of historic credit loss events and future-based factors. The percentage rates for the \\nloss likelihoods are checked regularly to ensure they are up to date. If objective indications of a credit \\nimpairment are found regarding the trade receivables of a certain customer, a detailed analysis of this \\ncustomer's specific credit risk is conducted and an individual provision for risks is established for the trade \\nreceivables with respect to this customer. If a credit insurance is in place, it is taken into account when \\ndetermining the amount of the risk provision. \\nThe Group assumes that the default risk of a financial asset has increased significantly if it is more than \\n30 days overdue. \\nOTHER FINANCIAL ASSETS \\nOther financial assets are classified based on the business model for control and the cash flows of the \\nfinancial assets. In the Group, financial assets are generally held under a business model that provides for \\n\\\"holding\\\" the asset until maturity, in order to collect the contractual cash flows. The second condition is that \\nthe terms and conditions of the financial asset result in cash flows at specified times, which exclusively \\nrepresent repayments and interest payments on the outstanding nominal amount. \\nThe \\\"trading\\\" business model is used for financial assets in the form of derivatives without a hedging \\nrelationship. These are valued at fair value through profit or loss (FVPL). \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n296 \\nNon-current financial assets include rental deposits and other assets. Non-interest-bearing non-current \\nassets are discounted to present value if the resulting effect is significant. \\nINVESTMENTS \\nThe investment recognised under non-current financial assets belongs to the category \\\"measured at fair \\nvalue through other comprehensive income\\\" (FVOCI), since these investments are held over the long term \\nfor strategic reasons. \\nAll purchases and disposals of investments are recorded on the settlement date. Investments are initially \\nrecognised at fair value plus transaction costs. They are also recognised at fair value in subsequent periods. \\nUnrealised gains and losses are recognised in other comprehensive income, taking into account deferred \\ntaxes. The gain or loss on disposal of investments is transferred to retained earnings. \\nThe category \\\"measured at fair value through profit or loss\\\" (FVPL) is not used with regard to investments. \\nPROPERTY, PLANT AND EQUIPMENT \\nProperty, plant and equipment are measured at acquisition cost, net of accumulated depreciation. The \\ndepreciation period depends on the expected useful life of the respective item. The straight-line method of \\ndepreciation is applied. The useful life depends on the type of the assets involved. Buildings are subject to a \\nuseful life of between ten and fifty years, and a useful life of between three to ten years is assumed for \\nmovable assets. \\nRepair and maintenance costs are recorded as an expense as of the date on which they were incurred. \\nSubstantial improvements and upgrades are capitalised to the extent that the criteria for capitalisation of an \\nasset item apply. \\nINVESTMENT PROPERTY \\nIn the financial year 2023, accounting for investment property was applied for the first time in accordance \\nwith IAS 40. These are accounted for in the same way as property, plant and equipment in accordance with \\nthe cost model, with their acquisition or production costs less scheduled depreciation and any necessary \\nimpairment losses. Depreciation is carried out on a straight-line basis and the useful lives are generally \\nequivalent to those of property, plant and equipment used in-house. \\nOTHER INTANGIBLE ASSETS (NOT INCLUDING GOODWILL) \\nAcquired intangible assets largely consist of concessions, intellectual property rights and similar rights. \\nThese are measured at acquisition cost, net of accumulated amortisation. The useful life of intangible \\nassets is between three and ten years. Scheduled depreciation is done on a straight-line basis. \\nIf the capitalisation requirements of IAS 38.57 \\\"Intangible Assets\\\" are met cumulatively, expenses in the \\ndevelopment phase for internally generated intangible assets are capitalised at the time they arise. In \\nsubsequent periods, internally generated intangible assets and acquired intangible assets are measured at \\ncost less accumulated amortisation and impairment losses. In the Group, internally generated intangible \\nassets are generally depreciated on a straight-line basis over a useful life of 3 years. \\nThere are also trademark rights acquired for a fee in relation to Cobra Golf. Cobra Golf, founded in 1978, has \\na brand history spanning over 40 years in golf. The Cobra brand represents the core of the Golf business \\narea and is continued through ongoing marketing investments by the PUMA Group in the Cobra brand. Due \\nto the stability of the golf market and the continuation of the brand by PUMA, an indefinite useful life is \\nassumed for the Cobra brand. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n297 \\nIMPAIRMENT OF ASSETS \\nIntangible assets with an indefinite useful life are not amortised according to schedule but are subjected to \\nan annual impairment test. Property, plant and equipment, right-of-use assets, and other intangible assets \\nwith finite useful lives are tested for impairment if there is any indication of impairment in the value of the \\nasset concerned. In order to determine whether there is a requirement to record the impairment of an \\nasset, the recoverable amount of the respective asset (the higher amount of the fair value less costs to sell \\nand value in use) is compared with the carrying amount of the asset. If the recoverable amount is lower than \\nthe carrying amount, the difference is recorded as an impairment loss. The test for impairment is \\nperformed, if possible, at the level of the respective individual asset, otherwise at the level of the cash-\\ngenerating unit. Goodwill, on the other hand, is tested for impairment only at the level of a group of cash-\\ngenerating units. If it is determined within the scope of the impairment test that an asset needs to be \\nimpaired, then the goodwill, if any, of the group of cash-generating units is written down initially and, in a \\nsecond step, the remaining amount is distributed proportionately over the remaining assets within the \\napplication scope of IAS 36. If the reason for the recorded impairment no longer applies, a reversal of \\nimpairment loss is recorded to the maximum amount of the amortised costs. There is no reversal of an \\nimpairment loss for goodwill. \\nThe recoverable amount is primarily calculated using the discounted cash flow method. For determining the \\nfair value less costs to sell and value in use, the expected cash flows are based on corporate planning data. \\nExpected cash flows are discounted using an interest rate in line with market conditions. As part of the fair \\nvalue determination less cost to sell, no special synergies of cash-generating units are taken into account, \\nand corporate planning data is adjusted to the assumptions of market participants, if required. Moreover, \\nthere is a difference between the fair value less costs to sell and the value in use because the costs to sell \\nare also taken into account. \\nTrademarks with an indefinite useful life are subjected to an impairment test based on the relief from \\nroyalty-method during the financial year or when the occasion arises. If there is evidence that the \\nunderlying Cobra business is insufficiently profitable, the trademark is not only valued individually using the \\nrelief from royalty-method, but the recoverable amount of the cash-generating units to which the trademark \\nis attributable is determined. \\nSee chapter 11 for further details, in particular regarding the assumptions used for the calculation. \\nBORROWINGS, OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES \\nIn general, these items are recognised at fair value, taking into account transaction costs, and subsequently \\nrecognised at amortised cost. Non-interest or low-interest-bearing liabilities with a term of at least one \\nyear are recognised at present value, taking into account an interest rate in line with market conditions, and \\nare compounded until their maturity at their repayment amount. \\nThe \\\"trading\\\" business model is used for financial liabilities in the form of derivatives without a hedge \\nrelationship. These are valued at fair value through profit or loss (FVPL). \\nCurrent borrowings also include those long-term loans that have a maximum residual term of up to one year. \\nPUMA offers its suppliers a supplier financing programme. This is reverse factoring, the financing \\nconditions of which are also linked to the achievement of sustainability targets by the suppliers in most \\ncases. Participation in the programme is voluntary for the suppliers and helps them to already pre-finance \\nthe supplier invoices to PUMA from one of the partner banks against an interest discount significantly \\nbefore the customary payment date. PUMA is not affected by the participation of the suppliers in the \\nsupplier financing programme (in particular no changes to the payment terms, no changes to the payment \\nmethods and/or no changes to the original contractual conditions). Accordingly, the liabilities are recognised \\nin the balance sheet as trade payables, and cash outflows are allocated to the cash inflow from operating \\nactivities in the cash flow statement. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n298 \\nPROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS \\nIn addition to defined benefit plans, some companies apply defined contribution plans, which do not result in \\nany additional pension commitment other than the current contributions. The pension provision under \\ndefined benefit plans is generally calculated using the projected unit credit method. This method takes into \\naccount not only known pension benefits and pension rights accrued as of the reporting date, but also \\nexpected future salary and pension increases. The defined benefit obligation (DBO) is calculated by \\ndiscounting expected future cash outflows at the rate of return on senior, fixed-rate corporate bonds. The \\ncurrencies and maturity periods of the underlying corporate bonds are consistent with the currencies and \\nmaturity periods of the obligations to be satisfied. In some of the plans, the obligation is accompanied by a \\nplan asset. In that case, the pension provision shown is reduced by the plan asset. \\nDetails regarding the assumed life expectancy, the mortality tables used and other assumptions are shown \\nin chapter 15. \\nOTHER PROVISIONS \\nProvisions for the expected expenses from warranty obligations pursuant to the respective national sales \\ncontract laws are recognised at the time of sale of the relevant products, according to the best estimate in \\nrelation to the expenditure needed in order to fulfil the Group's obligation. \\nProvisions are also made to account for onerous contracts. An onerous contract is assumed to exist where \\nthe unavoidable costs for fulfilling the contract exceed the economic benefit arising from this contract. \\nMANAGEMENT INCENTIVE PROGRAMMES \\nPUMA uses cash-settled share-based payments, share-based payments settled in cash or equities, and key \\nperformance indicator-based long-term incentive programmes. The share-based payments settled in cash \\nor equities are accounted for in the same way as cash-settled share-based payments. \\nDetailed information on the management incentive programmes is presented in Chapter 18. \\nRECOGNITION OF SALES \\nThe Group recognises sales from the sale of sporting goods. The sales are measured at fair value of the \\nconsideration to which the Group expects to be entitled from the contract with customers, taking into \\naccount returns, discounts and rebates. Amounts collected on behalf of third parties (such as VAT) are not \\nincluded in sales. The Group records sales at the time when PUMA fulfils its performance obligation to \\ncustomers and has transferred the right of disposal over the product to customers. \\nThe Group sells footwear, apparel and accessories both to wholesalers and directly to customers through its \\nown retail activities and online sales channels. Meanwhile, the sales-related warranty services cannot be \\npurchased separately and do not lead to services that go beyond the assurance of the specifications at the \\ntime of the transfer of risk. Accordingly, the Group records warranties in the balance sheet in accordance \\nwith IAS 37 \\\"Provisions, contingent liabilities and contingent assets\\\". \\nIn the case of sales of products to wholesalers, the sales revenue is recorded at the date on which the right \\nof disposal over the products is transferred to customers, in other words, when the products have been \\nshipped to the specific location of the wholesaler (delivery). After delivery, the wholesaler bears the \\ninventory risk and has full right of disposal over the manner and means of distribution and the selling price \\nof the products. In the case of sales to end customers in the Group's own retail stores, the sales are \\nrecorded at the date when the right of disposal over the products is transferred to the end customer, in \\nother words, the date on which the end customer buys the products in the retail store. The payment of the \\npurchase price is due as soon as the customers purchase the products. In the case of sales of goods \\nthrough our own online sales channels, sales are realised when the end customers have accepted the goods \\nand the power of disposal over the goods has been passed to the end customer. The payment terms applied \\ncorrespond to the standard industry payment terms for each country. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n299 \\nUnder certain conditions and according to the contractual stipulations, customers have the option to \\nexchange products or return them for a credit. The amount of the expected returns is estimated on the basis \\nof past experience and is deducted from sales in the form of a liability based on refund obligations. The \\nasset value of the right arising from the product return claim is recorded under inventories and leads to a \\ncorresponding reduction of cost of sales. \\nROYALTY AND COMMISSION INCOME \\nThe Group recognises license and commission income from the out-licensing of trademark rights to third \\nparties in accordance with IFRS 15 Revenue from contracts with customers. Income from royalties is \\nrecognised in the income statement in accordance with the invoices to be submitted by the licensees. In \\ncertain cases, values must be estimated in order to permit accounting on an accrual basis. Commission \\nincome is invoiced if the underlying purchase transaction is classified as realised. \\nADVERTISING AND PROMOTIONAL EXPENSES \\nAdvertising expenses are recognised in the income statement at the time they are incurred. In general, \\npromotional expenses stretching over several years are recognised as an expense over the contractual term \\non an accrual basis. Any expenditure surplus exceeding the economic benefit that results from this \\nallocation of expenses after the balance sheet date is recognised in the financial statements in the form of \\nan impairment of assets and, if necessary, a provision for anticipated losses. If promotional and advertising \\ncontracts provide for additional payments when predefined targets are achieved (e.g. medals, \\nchampionships), which cannot be predicted exactly in terms of time and amount, they are recognised in full \\nin profit or loss at the relevant date. \\nFINANCIAL RESULT \\nThe financial result includes interest income from financial investments and interest expenses from loans, \\nalong with interest income and expenses in connection with derivative financial instruments. Financial \\nresults also include interest expenses from lease liabilities as well as discounted, non-current liabilities \\nassociated with acquisitions and those arising from the valuation of pension commitments, in addition to \\ninterest income from finance leases. \\nExchange rate effects that can be directly allocated to an underlying transaction are shown in the respective \\nincome statement item. \\nINCOME TAXES \\nCurrent income taxes are determined in accordance with the tax regulations of the respective countries \\nwhere the individual Group companies conduct their operations. \\nPUMA management regularly assesses individual tax issues to determine whether there is scope for \\ninterpretation in view of existing tax regulations. If appropriate, these issues are taken into account in \\nincome tax liabilities or deferred taxes. The income tax assessment is generally carried out at the level of \\nthe individual case, taking into account any possible interactions. Appropriate balance sheet provisions have \\nbeen made for potential risks from uncertain tax positions, taking into account IFRIC 23. \\nDEFERRED TAXES \\nDeferred taxes resulting from temporary valuation differences between the IFRS and tax balance sheets of \\nindividual Group companies and from consolidation procedures, which are levied by the same taxation \\nauthority and can be netted, are charged to each taxable entity and recognised either as deferred tax assets \\nor deferred tax liabilities. \\nDeferred tax assets may also include claims for tax reductions that result from the expected utilisation of \\nexisting losses carried forward to subsequent years and which is likely to materialise. Deferred tax assets \\nor liabilities may also result from accounting treatments that do not affect the income statement. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n300 \\nDeferred tax assets are recognised only to the extent that the respective tax advantage is likely to \\nmaterialise. \\nESTIMATION UNCERTAINTY \\nThe preparation of the consolidated financial statements requires some assumptions and estimates that \\nhave an impact on the measurement and presentation of the recognised assets and liabilities, income and \\nexpenses, and contingent liabilities. The assumptions and estimates are based on premises, which in turn \\nare based on currently available information. In individual cases, the actual values may deviate from the \\nassumptions and estimates made. Consequently, future periods involve a risk of adjustment to the carrying \\namount of the assets and liabilities concerned. If the actual development differs from the expectation, the \\npremises and, if necessary, the carrying amounts of the relevant assets and liabilities are adjusted with an \\neffect on profit or loss. \\nAll assumptions and estimates are continuously reassessed. They are based on historical experiences and \\nother factors, including expectations regarding future global and industry-related trends that appear \\nreasonable under the current circumstances. Assumptions and estimates mainly relate to the valuation of \\ngoodwill and trademarks, inventories, liabilities from refund obligations, taxes and leases in which PUMA is \\nthe lessee. The most significant forward-looking assumptions and sources of estimation and uncertainty as \\nof the reporting date concerning the above-mentioned items are discussed below. \\nGoodwill and brands \\nA review of the impairment of goodwill is based on the calculation of the value in use as a leading valuation \\nconcept. In order to calculate the value in use, the Group must estimate the future cash flows from those \\ncash-generating units to which the goodwill is allocated. To this end, the data used were from the three-\\nyear plan, which is based on forecasts of the overall economic development and the resulting industry-\\nspecific consumer behaviour. Another key assumption concerns the determination of an appropriate \\ninterest rate for discounting the cash flow to present value (discounted cash flow method). The relief from \\nroyalty-method is used to value brands. See chapter 11 for further details, in particular regarding the \\nassumptions used for the calculation. \\nInventories \\nInventories are measured at acquisition or manufacturing cost or at the lower net realisable values derived \\nfrom the selling price at the balance sheet date. Value adjustments are adequately recorded, depending on \\nage, seasonality and realisable market prices. Further details on the inventory valuation are provided in \\nchapter 4. \\nLiabilities from refund obligations \\nThe Group recognises sales from the sale of sporting goods. The sales are measured at fair value of the \\nconsideration to which the Group expects to be entitled from the contract with customers, taking into \\naccount returns, discounts and rebates. As customers have the opportunity to exchange goods under \\ncertain conditions and in accordance with the contractual agreements, the amount of expected return \\ndeliveries is estimated on the basis of experience. The accrual of sales takes place via the liability from \\nrefund obligations. \\nTaxes \\nTax items are determined taking into account the various prevailing local tax laws and the relevant \\nadministrative opinions and, due to their complexity, may be subject to different interpretations by persons \\nsubject to tax on the one hand and the tax authorities on the other hand. Differing interpretations of tax laws \\nmay result in subsequent tax payments for past years; these are included based on the assessment of the \\nmanagement, using the most probable amount or the expected value for the individual case. \\nThe recognition of deferred taxes requires that estimates and assumptions be made concerning future tax \\nplanning strategies as well as expected dates of occurrence and the amount of future taxable income. The \\ntaxable income from the relevant corporate planning is derived for this assessment. It takes into account \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n301 \\nthe past financial position and the business development expected in the future. Deferred tax assets are \\nrecorded in the event of companies incurring a loss only if it is highly probable that future positive results \\nwill be achieved. See Chapter 8 for further information. \\nPUMA as lessee \\nThe measurement of lease liabilities under leases in which PUMA is the lessee is based on assumptions for \\nthe discount rates used, the lease term and the determination of fixed lease payments. To determine the \\npresent value of future minimum lease payments, PUMA uses country- and currency-specific interest rates \\non borrowings with compatible terms. In addition to the basic lease period, the Group includes extension \\noptions in the determination of the lease term if management is sufficiently certain that such options will be \\nexercised after taking into account all facts and circumstances. The fixed lease payments also include firmly \\nagreed upon minimum amounts for agreements with a predominantly variable lease amount. \\nDISCRETIONARY DECISIONS \\nThe preparation of the consolidated financial statements requires discretionary decisions relating to the \\napplication of accounting methods and the amounts of assets, liabilities, income and expenses reported. \\nInformation on the application of accounting policies that have the most material impact on the amounts \\nrecorded in the financial statements can be found in the following notes: \\nEvaluation of the control of companies with non-controlling interests \\nThe determination as to whether the Group controls the companies with non-controlling interests is \\npresented in chapter 28, Information on non-controlling interests. \\nPUMA as lessee \\nThe accounting for leases in which PUMA is the lessee includes discretionary decisions, in particular in \\nrelation to the term of the lease agreements with regard to determining whether the exercise of extension \\noptions is sufficiently certain. \\nSome real estate leases contain extension options that can only be exercised by PUMA and not by the lessor. \\nIf possible, the Group seeks to include extension options when concluding new leases in order to ensure \\noperational flexibility. On the date of provision, the Group assesses whether it is sufficiently certain that the \\nextension options will be exercised. The assessment is carried out individually for each contract and takes \\ninto account the amount of the company's own investments and the possibility of changing macroeconomic \\nconditions in the future. If significant events or significant changes occur during the term of the contract \\nthat are within PUMA's control, it will be reassessed as to whether it is sufficiently certain that the extension \\noption will be exercised. \\nSignificant discretionary decisions are made in the subsequent valuation of rights of use for retail stores in \\nthe context of assessing the existence of an impairment and determining the impairment requirement. \\nAmong other things, assumptions are made about the duration of the lease, the future economic \\ndevelopment and profitability of the retail stores, and also the underlying interest rate. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n302 \\nNOTES TO THE CONSOLIDATED STATEMENT OF \\nFINANCIAL POSITION \\n3. CASH AND CASH EQUIVALENTS \\nAs of 31 December 2023, the Group has € 552.9 million (previous year: € 463.1 million) in cash and cash \\nequivalents. This includes bank balances, including short-term financial investments with an original term \\nof up to three months. The average effective interest rate of the financial investments was 1.1% (previous \\nyear: 1.7%) for countries without hyperinflation. In countries with hyperinflation, the average effective \\ninterest rate of financial investments was 40.9% (previous year: 33.4%). Due to currency exchange controls, \\ntransfer restrictions of € 45.6 million (previous year: € 93.3 million) were placed on the cash and cash \\nequivalents reported. \\n \\n4. INVENTORIES \\nInventories are allocated to the following main groups: \\n↗ T.11 INVENTORIES (in € million) \\n \\n2023\\n2022\\nGoods/inventory and finished goods \\n \\n \\nFootwear \\n625.9\\n750.2\\nApparel \\n420.8\\n519.0\\nAccessories/Other \\n216.0\\n266.4\\nRaw materials, consumables and supplies \\n34.9\\n46.8\\nPrepayments made \\n2.9\\n3.2\\nGoods in transit \\n458.7\\n592.6\\nInventory adjustments related to returns \\n45.2\\n66.9\\nTotal \\n1,804.4\\n2,245.1\\n \\n \\n \\n \\nThe raw materials, consumables and supplies mainly relate to raw materials for the production of golf clubs \\nand footwear. \\nThe table shows the carrying amounts of the inventories net of value adjustments. Of the value adjustments \\nin the amount of € 157.1 million (previous year: € 217.0 million) approx. 64.3% (previous year: approx. 67.5%) \\nwere recognised as an expense under cost of sales in financial year 2023. The volume of inventories \\nrecorded as an expense during the period mainly includes the cost of sales shown in the consolidated \\nincome statement. \\nThe inventory adjustments related to returns represents the historical acquisition or production costs of the \\ninventories for which a return is expected. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n303 \\n5. TRADE RECEIVABLES \\nThe trade receivables are broken down as follows: \\n↗ T.12 TRADE RECEIVABLES (in € million) \\n \\n2023\\n2022\\nTrade receivables, gross \\n1,183.4\\n1,122.8\\nLess provision for risks \\n-65.0\\n-57.9\\nTrade receivables, net \\n1,118.4\\n1,064.9\\n \\n \\n \\n \\nThe change in the provision for risks for financial assets in the \\\"trade receivables\\\" class measured at \\namortised cost relates to receivables in connection with revenues from contracts with customers and has \\ndeveloped as follows: \\n↗ T.13 CHANGE OF RISK PROVISIONS FOR TRADE RECEIVABLES (in € million) \\n \\n2023\\n2022\\nStatus of provision for risks as of 1 January \\n57.9\\n58.7\\nExchange rate differences \\n-1.6\\n0.4\\nAdditions \\n26.7\\n20.3\\nUtilization \\n-3.8\\n-5.6\\nReversals of unused provision for risks \\n-14.3\\n-15.8\\nStatus of provision for risks as of 31 December \\n65.0\\n57.9\\n \\n \\n \\n \\nThe age structure of the trade receivables is as follows: \\n↗ T.14 AGE STRUCTURE 2023 (in € million) \\n \\n \\n \\noverdue \\n2023 \\nTotal\\nNot due\\n0-30\\ndays\\n31-90\\ndays\\n90-180\\ndays\\nOver 180\\ndays\\nGross carrying amount - \\nTrade receivables \\n1,183.4\\n952.3\\n92.4\\n83.4\\n14.1\\n41.4\\nProvision for risks \\n-65.0\\n-16.4\\n-4.0\\n-8.2\\n-4.5\\n-31.9\\nNet carrying amount - \\nTrade receivables \\n1,118.4\\n935.8\\n88.4\\n75.2\\n9.6\\n9.5\\nExpected loss rate \\n \\n1.7%\\n4.3%\\n9.8%\\n32.0%\\n77.1%\\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n304 \\n↗ T.15 AGE STRUCTURE 2022 (in € million) \\n \\n \\n \\noverdue \\n2022 \\nTotal\\nNot due\\n0-30\\ndays\\n31-90\\ndays\\n90-180\\ndays\\nOver 180\\ndays\\nGross carrying amount - \\nTrade receivables \\n1,122.8\\n986.7\\n58.5\\n26.4\\n11.6\\n39.7\\nProvision for risks \\n-57.9\\n-21.2\\n-3.7\\n-2.7\\n-2.7\\n-27.6\\nNet carrying amount - \\nTrade receivables \\n1,064.9\\n965.5\\n54.8\\n23.7\\n8.9\\n12.1\\nExpected loss rate \\n \\n2.1%\\n6.3%\\n10.2%\\n23.6%\\n69.6%\\n \\n \\n \\n \\n \\n \\n \\n \\nWith respect to the net carrying amounts of trade receivables, PUMA assumes that the debtors will satisfy \\ntheir payment obligations or that, in the event of a default, the net carrying amount will be covered by \\nexisting credit insurance. There are no significant risk concentrations as the customer base is very broad \\nand there are no correlations. \\n \\n6. OTHER CURRENT FINANCIAL ASSETS \\nOther current financial assets are broken down as follows: \\n↗ T.16 OTHER CURRENT FINANCIAL ASSETS (in € million) \\n \\n2023\\n2022\\nFair value of derivative financial instruments \\n34.5\\n115.9\\nLease receivables \\n14.9\\n0.0\\nOther financial assets \\n45.6\\n21.6\\nTotal \\n94.9\\n137.4\\n \\n \\n \\n \\nThe amount shown is due within one year. The fair value corresponds to the carrying amount. \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n305 \\n7. OTHER CURRENT ASSETS \\nOther current assets are broken down as follows: \\n↗ T.17 OTHER CURRENT ASSETS (in € million) \\n \\n2023\\n2022\\nPrepaid expense relating to the subsequent period \\n98.3\\n86.2\\nOther receivables \\n172.1\\n149.8\\nTotal \\n270.4\\n235.9\\n \\n \\n \\n \\nThe amount shown is due within one year. The fair value corresponds to the carrying amount. \\nOther receivables mainly comprise receivables relating to VAT of € 98.9 million (previous year: € 97.9 million) \\nand other taxes of € 25.6 million (previous year: € 30.3 million). \\n \\n8. DEFERRED TAXES \\nDeferred taxes relate to the items shown below: \\n↗ T.18 DEFERRED TAXES\\n1 (in € million) \\n \\n2023\\n2022\\nTax loss carryforwards \\n76.9\\n57.5\\nInventories \\n74.5\\n90.8\\nRemaining current assets \\n13.5\\n13.5\\nNon-current assets \\n56.3\\n37.6\\nLease liabilities (current and non-current) \\n290.8\\n289.6\\nProvisions and other liabilities \\n118.1\\n142.6\\nDeferred tax assets (before netting) \\n630.1\\n631.6\\nCurrent assets \\n17.4\\n37.6\\nIntangible assets \\n42.1\\n44.1\\nRight-of-use assets \\n258.2\\n260.5\\nRemaining non-current assets \\n24.6\\n32.4\\nProvisions and other liabilities \\n4.1\\n4.0\\nDeferred tax liabilities (before netting) \\n346.4\\n378.5\\nDeferred tax assets, net \\n283.7\\n253.1\\n \\n \\n \\n1 \\nIn order to better provide decision-relevant information, the data – including the previous year's figures – has been \\nadjusted. \\nAs of 31 December 2023, tax losses carried forward amounted to a total of € 447.9 million (previous year: \\n€ 360.7 million). Deferred tax assets were recognised for these items in the amount at which the associated \\ntax advantages are likely to be realised in the form of future profits for income tax purposes. In financial \\nyear 2023, no deferred tax items were recognised for the losses carried forward in the amount of \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n306 \\n€ 102.9 million (previous year: € 93.5 million), of which € 94.5 million (previous year: € 88.2 million) are \\nvested. The remaining tax losses carried forward, for which no deferred tax items were recognised, in the \\namount of € 8.3 million (previous year: € 5.3 million) will expire within the next six years\\n1.\\n \\nIn addition, no deferred tax items were recognised for temporary differences in the amount of € 27.0 million \\n(previous year: € 22.6 million) because they were not expected to be realised as of the balance sheet date. \\nFor Group companies that achieved a negative tax result in this or the previous financial year, a total of \\ndeferred tax assets in the amount of € 157.1 million were recognised after deduction of any deferred tax \\nliabilities (previous year: € 70.0 million) as sufficiently positive tax results can be expected in the future on \\nthe basis of the relevant projections. \\nNo deferred taxes on retained profits at subsidiaries were recognised where these gains are to be \\nreinvested on an ongoing basis and there is no intention to make a distribution in this respect. \\nDeferred tax assets and liabilities are netted if they relate to a taxable entity and can in fact be netted. \\nAccordingly, they are shown in the balance sheet as follows: \\n↗ T.19 DEFERRED TAX ASSETS AND LIABILITIES (in € million) \\n \\n2023\\n2022\\nDeferred tax assets \\n296.1\\n295.0\\nDeferred tax liabilities \\n12.4\\n42.0\\nDeferred tax assets, net \\n283.7\\n253.1\\n \\n \\n \\n \\nThe changes in deferred tax assets (net) were as follows: \\n↗ T.20 MOVEMENT OF DEFERRED TAXES (in € million) \\n \\n2023\\n2022\\nDeferred tax assets, net as of 1 January \\n253.1\\n231.1\\nRecognition in the income statement \\n22.8\\n25.1\\nAdjustment related to remeasurements of the net defined benefit liability, \\nrecognised in other comprehensive income \\n0.2\\n-2.5\\nAdjustment related to the market value of hedging contracts, \\nrecognised in other comprehensive income \\n10.1\\n-0.7\\nCurrency exchange effects \\n-2.5\\n0.0\\nDeferred tax assets, net as of 31 December \\n283.7\\n253.1\\n \\n \\n \\n \\n \\n \\n \\n1 In order to better provide decision-relevant information, the data – including the previous year's figures – has been adjusted. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n307 \\n9. PROPERTY, PLANT AND EQUIPMENT \\nThe development of property, plant and equipment is shown in the following tables: \\n↗ T.21 MOVEMENTS PROPERTY, PLANT & EQUIPMENT 2023 (in € million) \\n \\nReal Estate\\nTechnical\\nequipment and\\nmachines\\nOther equipment, \\nfactory and office \\nequipment\\nPayments on \\naccount and assets \\nunder construction\\nTotal\\nPurchase costs as of \\n1 January 2023 \\n175.2 \\n170.8\\n706.2 \\n75.1 \\n1,127.3 \\nAdditions \\n23.9 \\n16.6\\n118.4 \\n66.5 \\n225.4 \\nDisposals \\n-4.8 \\n-0.4\\n-41.0 \\n-2.8 \\n-49.0 \\nTransfers \\n0.1 \\n39.7\\n2.2 \\n-42.3 \\n-0.4 \\nCurrency changes \\n-5.0 \\n-4.1\\n-32.6 \\n-1.8 \\n-43.4 \\nAs of 31 December 2023 \\n189.5 \\n222.5\\n753.2 \\n94.8 \\n1,260.0 \\nAccumulated \\ndepreciation as of \\n1 January 2023 \\n-54.5 \\n-37.3\\n-443.2 \\n-0.1 \\n-535.2 \\nDepreciation \\n-6.2 \\n-15.0\\n-84.4 \\n0.0 \\n-105.7 \\nDisposals \\n3.5 \\n0.4\\n38.6 \\n0.0 \\n42.5 \\nTransfers \\n0.0 \\n-0.3\\n-0.0 \\n0.0 \\n-0.3 \\nCurrency changes \\n1.2 \\n2.5\\n20.3 \\n0.1 \\n24.2 \\nAs of 31 December 2023 \\n-56.0 \\n-49.7\\n-468.7 \\n0.0 \\n-574.4 \\nNet carrying amount as \\nof 31 December 2023 \\n133.5 \\n172.8\\n284.6 \\n94.8 \\n685.6 \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n308 \\n↗ T.22 MOVEMENTS PROPERTY, PLANT & EQUIPMENT 2022 (in € million) \\n \\nReal Estate\\nTechnical\\nequipment and\\nmachines\\nOther equipment, \\nfactory and office \\nequipment\\nPayments on \\naccount and assets \\nunder construction\\nTotal\\nPurchase costs as of \\n1 January 2022 \\n168.6 \\n145.2\\n574.1 \\n42.1 \\n930.0 \\nAdditions \\n0.9 \\n6.8\\n112.7 \\n79.5 \\n199.9 \\nDisposals \\n-0.2 \\n-0.5\\n-45.0 \\n-2.4 \\n-48.1 \\nTransfers \\n-4.2 \\n12.8\\n44.9 \\n-44.8 \\n8.5 \\nCurrency changes \\n10.1 \\n6.5\\n19.6 \\n0.8 \\n37.0 \\nAs of 31 December 2022 \\n175.2 \\n170.8\\n706.2 \\n75.1 \\n1,127.3 \\nAccumulated \\ndepreciation as of \\n1 January 2022 \\n-47.0 \\n-19.5\\n-391.1 \\n0.0 \\n-457.6 \\nDepreciation \\n-6.0 \\n-9.0\\n-78.7 \\n0.0 \\n-93.7 \\nDisposals \\n0.1 \\n0.4\\n43.6 \\n0.0 \\n44.2 \\nTransfers \\n0.1 \\n-4.1\\n-0.0 \\n-0.1 \\n-4.2 \\nImpairment \\n0.0 \\n0.0\\n-0.6 \\n0.0 \\n-0.6 \\nCurrency changes \\n-1.7 \\n-5.2\\n-16.4 \\n0.0 \\n-23.2 \\nAs of 31 December 2022 \\n-54.5 \\n-37.3\\n-443.2 \\n-0.1 \\n-535.2 \\nNet carrying amount as \\nof 31 December 2022 \\n120.7 \\n133.5\\n263.1 \\n75.0 \\n592.2 \\n \\n \\n \\n \\n \\n \\n \\nInvestment properties are included under real estate within property, plant and equipment with a carrying \\namount of € 21.1 million (previous year: € 0.0 million) as of 31 December 2023. The fair value of investment \\nproperties as of 31 December 2023 is € 23.3 million (previous year: € 0.0 million). This was determined by \\nexternal, independent experts who have relevant professional qualifications and current experience with the \\nlocation and type of properties to be valued. The fair value was determined on the basis of the market-\\ncomparative approach, which reflects the most recent transaction prices for similar properties. \\nThe rental income generated by the Group from investment properties amounted to € 0.6 million in the \\nfinancial year (previous year: € 0.0 million). Direct operating expenses for investment properties, which \\ngenerated rental income in the financial year, amounted to € 0.0 million (previous year: € 0.0 million). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n309 \\n \\n10. LEASES \\nPUMA AS LESSEE \\nThe Group rents and leases offices, warehouses, facilities, technical equipment and machinery, motor \\nvehicles and sales rooms for its own retail business. As a rule, the lease agreements have a term of \\nbetween one and fifteen years. Some agreements include renewal options and price adjustment clauses. \\nThe carrying amounts for right-of-use assets recognised in the balance sheet relate to the following asset \\nclasses: \\n↗ T.23 RIGHT-OF-USE ASSETS 2023 (in € million) \\n \\nReal Estate –\\nRetail stores\\nReal Estate –\\nWarehouses & offices\\nOthers\\n(technical equipment\\nand machines and\\nvehicles)\\nTotal\\nDepreciation \\n107.1\\n89.7\\n12.2\\n209.0\\nAdditions \\n174.1\\n71.9\\n14.3\\n260.3\\nNet carrying amount as of \\n31 December 2023 \\n464.2\\n557.7\\n65.7\\n1,087.7\\n \\n \\n \\n \\n \\n \\n↗ T.24 RIGHT-OF-USE ASSETS 2022 (in € million) \\n \\nReal Estate –\\nRetail stores\\nReal Estate –\\nWarehouses & offices\\nOthers\\n(technical equipment\\nand machines and\\nvehicles)\\nTotal\\nDepreciation \\n110.1\\n82.1\\n10.6\\n202.8\\nAdditions \\n187.1\\n188.8\\n29.5\\n405.4\\nNet carrying amount as of \\n31 December 2022 \\n430.9\\n613.1\\n67.3\\n1,111.3\\n \\n \\n \\n \\n \\n \\nThe following lease liabilities result: \\n↗ T.25 LEASE LIABILITIES (in € million) \\n \\n2023\\n2022\\nCurrent lease liabilities \\n212.4\\n200.2\\nNon-current lease liabilities \\n1,020.0\\n1,030.3\\nTotal \\n1,232.4\\n1,230.4\\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n310 \\nThe amounts recognised in the income statement are as follows: \\n↗ T.26 RECOGNISED IN INCOME STATEMENT (in € million) \\n \\n2023\\n2022\\nDepreciation of right-of-use assets incl. impairment losses and reversal of \\nimpairment losses (included in operating expenses) \\n202.8\\n228.1\\nInterest expense (included in financial expenses) \\n46.8\\n38.6\\nExpenses short-term leases \\n(included in operating expenses) \\n11.3\\n10.1\\nExpenses leases of low-value assets \\n(included in operating expenses) \\n1.2\\n1.0\\nExpenses variable lease payments \\n(included in operating expenses) \\n35.4\\n29.7\\nTotal \\n297.5\\n307.6\\n \\n \\n \\n \\nVariable lease payments are incurred in connection with the Group's own retail stores. These are based on \\nthe sales amount and are therefore dependent on the overall economic development. \\nTotal cash outflows from lease liabilities in 2023 amounted to € 254.8 million (previous year: € 228.7 million). \\nDue to reduced earnings prospects based on updated financial planning and estimates as well as retail \\nstore closures, impairment expenses in the total amount of € 5.7 million were recorded for the right of use \\nof assets in connection with PUMA's own retail stores in financial year 2023 (previous year: € 25.4 million). \\nTo determine the impairment, the recoverable amount was calculated for the individual retail stores. This \\namounted to € 65.3 million for impaired retail stores (previous year: € 111.4 million). In the financial year, \\nimpairment reversals in the amount of € 11.9 million (previous year: € 0.0 million) were recorded for retail \\nstores. There were no impairment losses or impairment reversals in the other categories of right-of-use \\nassets. \\nIn 2023, PUMA entered into lease agreements that had not yet commenced by year-end. As a result, no \\nlease liabilities and corresponding right-of-use assets had been recognised as of 31 December 2023. Future \\nlease payments in connection with these agreements amount to € 2.0 million (previous year: € 2.6 million) \\nfor the next year, € 28.2 million for years two to five (previous year: € 13.7 million) and € 48.5 million for the \\nsubsequent period (previous year: € 8.7 million). The lease terms for these are up to 15 years. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n311 \\nThe maturity analysis of lease liabilities is as follows: \\n↗ T.27 MATURITY ANALYSIS OF LEASE LIABILITIES (in € million) \\n \\n2023\\n2022\\nDue within one year \\n255.8\\n234.0\\nDue between one and five years \\n679.6\\n665.3\\nDue after five years \\n510.4\\n541.2\\nTotal (undiscounted) \\n1,445.8\\n1,440.6\\nInterest expense (not yet realised) \\n-213.4\\n-210.2\\nTotal \\n1,232.4\\n1,230.4\\n \\n \\n \\n \\nPUMA AS LESSOR \\nPUMA rents out properties owned and leased as a lessor. From the lessor's point of view, these (sub)leases \\nare classified as operating or finance leases. In the previous year, PUMA did not rent out any properties. \\nThe net investments from finance leases are shown as receivables in the balance sheet and are reduced by \\nthe repayment portion included in the lease payment. The interest portion included in the lease payment is \\nreported as interest income in the financial result. \\nThe maturities of the existing receivables on lease payments against third parties classified as finance \\nleases are as follows: \\n↗ T.28 MATURITY ANALYSIS OF LEASE RECEIVABLES (in € million) \\n \\n2023\\nDue within one year \\n16.8\\nDue between one and five years \\n24.8\\nDue after five years \\n4.5\\nTotal (undiscounted) \\n46.1\\nInterest income (not yet realised) \\n-5.4\\nProvision for risks \\n-0.5\\nTotal \\n40.2\\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n312 \\nThe following income was recognised in the income statement in connection with leases: \\n↗ T.29 RECOGNISED IN INCOME STATEMENT (in € million) \\n \\n2023\\nOperating leases \\n \\nFixed rental income \\n1.0\\nFinance leases \\n \\nVariable rental income \\n0.4\\nTotal rental income (included in other operating income) \\n1.4\\nSelling profit (included in other operating income) \\n8.0\\nInterest income (included in financial income) \\n1.2\\n \\n \\n \\nFuture lease payments from operating leases for the coming year amount to € 1.6 million (previous year: \\n€ 0.0 million) and to € 5.1 million for years two to five (previous year: € 0.0 million). \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n313 \\n11. INTANGIBLE ASSETS \\nIntangible Assets mainly include goodwill, intangible assets with indefinite useful lives (e.g. brands), assets \\nassociated with the Company's own retail activities and software licenses. \\nThe development of intangible assets is shown in the following table: \\n↗ T.30 MOVEMENTS INTANGIBLE ASSETS 2023 (in € million) \\n \\nGoodwill\\nIntangible assets \\nwith an indefinite \\nuseful life\\nOther \\nintangible assets\\nTotal\\nPurchase costs as of 1 January 2023 \\n289.3\\n151.0\\n341.0\\n781.2\\nAdditions \\n0.0\\n0.0\\n74.2\\n74.2\\nDisposals \\n0.0\\n0.0\\n-16.8\\n-16.8\\nTransfers \\n0.0\\n0.0\\n0.6\\n0.6\\nCurrency changes \\n-4.0\\n-4.6\\n-1.5\\n-10.1\\nAs of 31 December 2023 \\n285.3\\n146.3\\n397.5\\n829.1\\nAccumulated depreciation as of \\n1 January 2023 \\n-46.6\\n-17.6\\n-210.5\\n-274.7\\nDepreciation \\n0.0\\n0.0\\n-37.0\\n-37.0\\nDisposals \\n0.0\\n0.0\\n11.9\\n11.9\\nTransfers \\n0.0\\n0.0\\n-0.1\\n-0.1\\nCurrency changes \\n0.4\\n0.0\\n1.3\\n1.6\\nAs of 31 December 2023 \\n-46.3\\n-17.6\\n-234.5\\n-298.2\\nNet carrying amount as of \\n31 December 2023 \\n239.0\\n128.7\\n163.0\\n530.8\\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n314 \\n↗ T.31 MOVEMENTS INTANGIBLE ASSETS 2022 (in € million) \\n \\nGoodwill\\nIntangible assets \\nwith an indefinite \\nuseful life\\nOther \\nintangible assets\\nTotal\\nPurchase costs as of 1 January 2022 \\n291.5\\n143.2\\n276.6\\n711.4\\nAdditions \\n0.0\\n0.0\\n64.0\\n64.0\\nDisposals \\n0.0\\n0.0\\n-2.4\\n-2.4\\nTransfers \\n0.0\\n0.0\\n1.3\\n1.3\\nCurrency changes \\n-2.2\\n7.8\\n1.4\\n6.9\\nAs of 31 December 2022 \\n289.3\\n151.0\\n341.0\\n781.2\\nAccumulated depreciation as of \\n1 January 2022 \\n-46.8\\n-17.6\\n-175.1\\n-239.5\\nDepreciation \\n0.0\\n0.0\\n-36.3\\n-36.3\\nDisposals \\n0.0\\n0.0\\n2.2\\n2.2\\nTransfers \\n0.0\\n0.0\\n-0.2\\n-0.2\\nCurrency changes \\n0.2\\n0.0\\n-1.1\\n-1.0\\nAs of 31 December 2022 \\n-46.6\\n-17.6\\n-210.5\\n-274.7\\nNet carrying amount as of \\n31 December 2022 \\n242.7\\n133.4\\n130.4\\n506.5\\n \\n \\n \\n \\n \\n \\nThe item Other intangible assets includes advance payments in the amount of € 21.6 million (previous year: \\n€ 5.6 million). \\nThe current amortisation of intangible assets in the amount of € 37.0 million (previous year: € 36.3 million) is \\nincluded in the other operating expenses. Of this, € 11.5 million relate to sales and distribution expenses \\n(previous year: € 7.7 million), € 0.1 million to expenses for product management/merchandising (previous \\nyear: € 0.1 million), € 0.0 to development expenses (previous year: € 1.9 million), and € 25.3 million to \\nadministrative and general expenses (previous year: € 26.5 million). \\nINFORMATION ON PLANNING ASSUMPTIONS FOR IMPAIRMENT TESTS \\nGoodwill and intangible assets with indefinite useful lives are not amortised according to schedule. \\nImpairment tests with regard to goodwill were performed in the past financial year using the discounted \\ncash flow method. The data from the three-year plan for the respective cash-generating unit or group of \\ncash-generating units was used as a basis for this. Planning on the level of the cash-generating units was \\nthereby derived from the PUMA Group's three-year plan. The following key assumptions have been made for \\nthe PUMA Group plans: \\nBased on the basic assumptions regarding overall economic development, planning at Group level assumes \\nthat geopolitical tensions will not increase any further. Under these conditions, we expect our business to \\ncontinue to grow profitably. \\nPlanned sales growth is based on the good future growth prospects in the sporting goods industry and on \\nmarket share gains by PUMA. This is to be achieved, in particular, via the continued consistent \\nimplementation of the Forever Faster corporate strategy and the increase in PUMA's brand heat. \\nThe improvement in EBIT margin in the planning period is the result of a slight increase in gross profit \\nmargin due to, for example, a higher share of own retail sales as a result of above-average growth of the e-\\ncommerce distribution channel. Furthermore, the slightly weaker percentage increase of other operating \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n315 \\nincome and expenses compared to sales growth is also expected to contribute to the improvement of the \\nEBIT margin; for example, the operating requirements for planned sales growth over the coming years have \\nessentially been met, meaning that economies of scale can be realised. \\nThe planning of investments and working capital is based on historical experience and is carried out in \\naccordance with strategic objectives. \\nThe future tax payments are based on current tax rates in the respective country. \\nFor periods beyond the three-year plan, an annual growth rate is determined and used to forecast future \\ncash flows beyond the three-year period. The assumed growth rate is based on long-term expectations of \\ninflation rates and does not exceed the long-term average growth rates for the business area in which the \\nrespective cash-generating unit, or group of cash-generating units, operates. \\nThe recoverable amount for the respective cash-generating unit or group of cash-generating units was \\ndetermined on the basis of the value-in-use. This did not result in impairment losses for any cash-\\ngenerating units. \\nINTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE \\nIn connection with the Golf business unit (CPG – Cobra PUMA Golf), the Cobra brand exists as an intangible \\nasset with an indefinite useful life amounting to € 128.7 million (previous year: € 133.4 million). The carrying \\namount of the Cobra brand is significant in comparison to the overall carrying amount of the intangible \\nassets with an indefinite useful life. It was assigned to the North America business segment, where the \\nheadquarters of Cobra PUMA Golf is located. The recoverable amount of the Cobra brand was determined \\nusing the relief from royalty-method (level 3 – see explanation in chapter 14). A discount rate of 10.6% p.a. \\n(previous year: 9.4% p.a.), a royalty rate of 6.0% (previous year: 8.0%) and a sustainable 2.0% growth rate \\n(previous year: 2.0%) was used. Cobra or CPG's three-year plan shows average revenue growth in the high \\nsingle-digit percentage range. The Management's key assumptions about improvement in the EBIT margin \\nin Cobra's or CPG's three-year plan are essentially in line with the fundamental assumptions in the plans at \\nGroup level. \\nA reduction of the royalty rate to approximately 5.4% or a reduction of the average planned sales revenues \\nby approx. 10.3% would not result in any impairment requirement for the Cobra brand, and the recoverable \\namount would correspond to the carrying amount. \\nIf there is evidence that the underlying Cobra business is insufficiently profitable, the trademark is not only \\nvalued individually using the relief from royalty-method, but the recoverable amount of the cash-generating \\nunits to which the trademark is attributable is determined. In 2023, there were no indications of an \\nimpairment. \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n316 \\nGOODWILL \\nGoodwill is allocated to the Group's identifiable groups of cash-generating units (CGUs) according to the \\ncountries where the activities are carried out. Summarised by regions, goodwill is allocated as follows: \\n↗ T.32 COMPOSITION OF GOODWILL (in € million) \\n \\n2023\\n2022\\nPUMA UK \\n1.6\\n1.6\\nGenesis \\n7.0\\n6.9\\nSubtotal Europe \\n8.7\\n8.5\\nPUMA Canada \\n9.7\\n9.9\\nPUMA United NA \\n2.0\\n2.1\\nSubtotal North America \\n11.7\\n11.9\\nPUMA Argentina \\n15.8\\n16.4\\nPUMA Chile \\n0.5\\n0.5\\nPUMA Mexico \\n12.2\\n10.9\\nSubtotal Latin America \\n28.5\\n27.8\\nPUMA China \\n2.5\\n2.5\\nPUMA Taiwan \\n13.3\\n13.7\\nSubtotal Greater China \\n15.8\\n16.2\\nPUMA Japan \\n35.0\\n38.9\\nSubtotal Asia/Pacific (excluding Greater China) \\n35.0\\n38.9\\nstichd \\n139.4\\n139.4\\nTotal \\n239.0\\n242.7\\n \\n \\n \\n \\nAssumptions used in conducting the impairment tests in 2023: \\n↗ T.33 ASSUMPTIONS IMPAIRMENT TEST 2023 \\n \\nTax rate (range)\\nWACC before tax \\n(range)\\nWACC after tax \\n(range)\\nEurope \\n19.0%\\n13.3%\\n11.1%\\nNorth America * \\n26.2%\\n12.7%\\n10.3%\\nLatin America \\n27.0%-35.0%\\n16.5%-64.1%\\n12.1%-51.7%\\nGreater China \\n20.0%-25.0%\\n12.9%-14.0%\\n10.5%-11.2%\\nAsia/Pacific (excluding Greater China) * \\n38.1%\\n16.4%\\n10.5%\\nstichd * \\n25.0%\\n13.1%\\n10.2%\\n \\n \\n \\n \\n \\n* \\nThe information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-\\ngenerating unit (CGU) \\nThe tax rates used for the impairment test correspond to the actual tax rates in the respective countries. \\nThe weighted average cost of capital (WACC) was derived on the basis of the weighted average cost of total \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n317 \\ncapital, taking into account a standard market capital structure (ratio of debt to equity) and including the \\nmost important listed competitors (peer group). \\nIn addition, a growth rate of 2.0% (previous year: 2.0%) is generally assumed. A growth rate of less than \\n2.0% (previous year: less than 2.0%) was applied only in justified exceptional cases, where the long-term \\nexpectations on inflation rate for the country in which the cash-generating unit operates were lower than \\nthe assumed growth rate; this applies, in particular, to the UK, Japan and Taiwan. \\nThe cash-generating unit stichd includes goodwill of € 139.4 million (previous year: € 139.4 million), which is \\nsignificant in comparison to the overall carrying amount of goodwill. The recoverable amount was \\ndetermined by a value-in-use calculation with a discount rate of 10.2% p.a. (previous year: 9.4% p.a.) and a \\ngrowth rate of 2.0% (previous year: 2.0%). Stichd's three-year plan shows sales growth in the low double-\\ndigit percentage range. In the three-year plan for stichd, a lower improvement in the EBIT margin is \\nexpected compared to the Group, as the EBIT margin of stichd is already higher than for the Group as a \\nwhole. \\nThe cash-generating unit PUMA Japan includes goodwill of € 35.0 million (previous year: € 38.9 million), \\nwhich is significant in comparison to the overall carrying amount of goodwill. The recoverable amount was \\ndetermined by a value-in-use calculation with a discount rate of 10.5% p.a. (previous year: 9.4% p.a.) and a \\ngrowth rate of 1.2% (previous year: 1.0%). PUMA Japan's three-year plan shows sales growth in the high \\nsingle-digit percentage range. PUMA Japan's three-year plan shows that the company expects a strong \\nimprovement in the EBIT margin and a return to the historical profitability level of PUMA Japan. \\nThe following table contains the assumptions for the performance of the impairment test in the previous \\nyear: \\n↗ T.34 ASSUMPTIONS IMPAIRMENT TEST 2022 \\n \\nTax rate (range)\\nWACC before tax \\n(range)\\nWACC after tax \\n(range)\\nEurope \\n19.0%\\n12.3%-12.4%\\n10.4%\\nNorth America * \\n26.2%\\n11.8%\\n9.1%\\nLatin America \\n27.0%-34.9%\\n14.8%-65.4%\\n11.2%-58.3%\\nGreater China \\n20.0%-25.0%\\n12.1%-13.5%\\n10.0%-10.6%\\nAsia/Pacific (excluding Greater China) * \\n38.1%\\n14.3%\\n9.4%\\nstichd * \\n25.0%\\n12.0%\\n9.4%\\n \\n \\n \\n \\n \\n* \\nThe information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-\\ngenerating unit (CGU) \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n318 \\n12. OTHER NON-CURRENT ASSETS \\nOther non-current financial and non-financial assets consist of: \\n↗ T.35 OTHER NON-CURRENT ASSETS (in € million) \\n \\n2023\\n2022\\nInvestments \\n21.2\\n21.7\\nFair value of derivative financial instruments \\n1.4\\n2.5\\nLease receivables \\n25.3\\n0.0\\nOther financial assets \\n35.7\\n34.2\\nTotal of other non-current financial assets \\n83.6\\n58.4\\nOther non-current non-financial assets \\n25.6\\n8.8\\nOther non-current assets, total \\n109.1\\n67.2\\n \\n \\n \\n \\nThe investments relate to the 5.32% shareholding in Borussia Dortmund GmbH & Co. Kommanditgesell-\\nschaft auf Aktien (BVB) with registered office in Dortmund, Germany. According to the audited IFRS \\nconsolidated financial statements 2022/2023 of Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf \\nAktien, equity as of 30 June 2023 amounted to € 282.7 million and the result of the last financial year was \\n€ 9.6 million. \\nOther financial assets mainly include rental deposits in the amount of € 31.9 million (previous year: \\n€ 29.8 million). The other non-current non-financial assets mainly include accruals and deferrals in \\nconnection with promotional and advertising agreements. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n319 \\n13. LIABILITIES \\nThe residual terms of liabilities are as follows: \\n↗ T.36 LIABILITIES (in € million) \\n \\n2023 \\n2022 \\n \\n \\nResidual term of \\n \\nResidual term of \\n \\nTotal\\nup to 1 year\\n1 to 5 years\\nover 5 years\\nTotal\\nup to 1 year\\n1 to 5 years\\nover 5 years\\nBorrowings \\n572.0\\n145.9\\n426.1\\n0.0\\n327.4\\n75.9\\n251.5\\n0.0\\nTrade payables \\n1,499.8\\n1,499.8\\n0.0\\n0.0\\n1,734.9\\n1,734.9\\n0.0\\n0.0\\nOther liabilities* \\n \\n \\n0.0\\n \\n \\n \\n \\n \\nLiabilities from other taxes \\n110.0\\n110.0\\n0.0\\n0.0\\n82.6\\n82.6\\n0.0\\n0.0\\nLiabilities relating to social security \\n10.6\\n10.6\\n0.0\\n0.0\\n10.0\\n10.0\\n0.0\\n0.0\\nPayables to employees \\n123.6\\n123.6\\n0.0\\n0.0\\n137.2\\n137.2\\n0.0\\n0.0\\nLiabilities from refund obligations \\n236.9\\n236.9\\n0.0\\n0.0\\n373.9\\n373.9\\n0.0\\n0.0\\nLiabilities from derivative financial instruments \\n58.2\\n47.7\\n10.5\\n0.0\\n52.4\\n39.5\\n12.9\\n0.0\\nRemaining other liabilities \\n45.4\\n43.2\\n2.0\\n0.2\\n54.0\\n51.6\\n2.0\\n0.3\\nTotal \\n2,656.5\\n2,217.7\\n438.5\\n0.2\\n2,772.5\\n2,505.8\\n266.3\\n0.3\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n* \\nThe maturity analysis on lease liabilities is presented in chapter 10. \\n \\nThe liabilities from refund obligations result from contracts with customers and essentially comprise obligations from customer return rights. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n320 \\n14. FINANCIAL INSTRUMENTS \\nCARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND ALLOCATION TO VALUATION CATEGORIES \\n↗ T.37 CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUE (in € million) \\n \\nMeasurement\\ncategories\\nunder IFRS 9\\nCarrying\\namount\\nFair value\\nLevel 1\\nLevel 2\\nLevel 3\\nCarrying\\namount\\nFair value\\nLevel 1\\nLevel 2\\nLevel 3\\n \\n \\n2023\\n2023\\n \\n \\n \\n2022\\n2022\\n \\n \\n \\nAssets \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nCash and cash equivalents \\n1)AC\\n552.9\\n \\n \\n \\n \\n463.1\\n \\n \\n \\n \\nTrade receivables \\nAC\\n1,118.4\\n \\n \\n \\n \\n1,064.9\\n \\n \\n \\n \\nOther current financial assets \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nDerivatives - hedge accounting \\nn/a\\n22.8\\n22.8\\n \\n22.8\\n \\n56.1\\n56.1\\n \\n56.1\\n \\nDerivatives - no hedge accounting \\n2)FVPL\\n11.6\\n11.6\\n \\n11.6\\n \\n59.8\\n59.8\\n \\n59.8\\n \\nLease receivables \\nn/a\\n14.9\\n \\n \\n \\n \\n0.0\\n \\n \\n \\n \\nRemaining current financial assets \\nAC\\n45.6\\n \\n \\n \\n \\n21.6\\n \\n \\n \\n \\nOther non-current financial assets \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nDerivatives - hedge accounting \\nn/a\\n1.4\\n1.4\\n \\n1.4\\n \\n2.5\\n2.5\\n \\n2.5\\n \\nInvestments \\n3)FVOCI\\n21.2\\n21.2\\n21.2\\n \\n \\n21.7\\n21.7\\n21.7\\n \\n \\nLease receivables \\nn/a\\n25.3\\n \\n \\n \\n \\n0.0\\n \\n \\n \\n \\nRemaining non-current financial assets \\nAC\\n35.7\\n \\n \\n \\n \\n34.2\\n \\n \\n \\n \\nLiabilities \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nCurrent borrowings \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nBank liabilities \\nAC\\n15.2\\n \\n \\n \\n \\n15.9\\n \\n \\n \\n \\nPromissory note loans \\nAC\\n130.8\\n124.9\\n \\n124.9\\n \\n60.0\\n59.3\\n \\n59.3\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n321 \\n \\nMeasurement\\ncategories\\nunder IFRS 9\\nCarrying\\namount\\nFair value\\nLevel 1\\nLevel 2\\nLevel 3\\nCarrying\\namount\\nFair value\\nLevel 1\\nLevel 2\\nLevel 3\\n \\n \\n2023\\n2023\\n \\n \\n \\n2022\\n2022\\n \\n \\n \\nTrade payables \\nAC\\n1,499.8\\n \\n \\n \\n \\n1,734.9\\n \\n \\n \\n \\nCurrent lease liabilities \\nn/a\\n212.4\\n \\n \\n \\n \\n200.2\\n \\n \\n \\n \\nOther current financial liabilities \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nDerivatives - hedge accounting \\nn/a\\n22.6\\n22.6\\n \\n22.6\\n \\n23.6\\n23.6\\n \\n23.6\\n \\nDerivatives - no hedge accounting \\n2)FVPL\\n25.1\\n25.1\\n \\n25.1\\n \\n15.9\\n15.9\\n \\n15.9\\n \\nRemaining current financial liabilities \\nAC\\n30.9\\n \\n \\n \\n \\n36.5\\n \\n \\n \\n \\nNon-current borrowings (promissory note loans) \\nAC\\n426.1\\n427.4\\n \\n427.4\\n \\n251.5\\n239.5\\n \\n239.5\\n \\nNon-current lease liabilities \\nn/a\\n1,020.0\\n \\n \\n \\n \\n1,030.3\\n \\n \\n \\n \\nOther non-current financial liabilities \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nDerivatives - hedge accounting \\nn/a\\n10.5\\n10.5\\n \\n10.5\\n \\n12.9\\n12.9\\n \\n12.9\\n \\nRemaining non-current financial liabilities \\nAC\\n0.9\\n \\n \\n \\n \\n1.0\\n \\n \\n \\n \\nTotal financial assets at amortised cost \\n \\n1,752.6\\n \\n \\n \\n \\n1,583.8\\n \\n \\n \\n \\nTotal financial liabilities at amortised cost \\n \\n2,103.6\\n \\n \\n \\n \\n2,099.8\\n \\n \\n \\n \\nTotal financial assets at fair value through profit \\nor loss \\n \\n11.6\\n \\n \\n \\n \\n59.8\\n \\n \\n \\n \\nTotal financial liabilities at fair value through \\nprofit or loss \\n \\n25.1\\n \\n \\n \\n \\n15.9\\n \\n \\n \\n \\nTotal financial assets at FVOCI \\n \\n21.2\\n \\n \\n \\n \\n21.7\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n1) AC = at amortised cost \\n2) FVPL = fair value through PL \\n3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n322 \\nFinancial instruments that are measured at fair value in the balance sheet were determined using the \\nfollowing hierarchy: \\nLevel 1: Use of prices quoted on active markets for identical assets or liabilities. \\nLevel 2: Use of input factors that do not involve the quoted prices stated under level 1, but can be observed \\nfor the asset or liability either directly (i.e. as the price) or indirectly (i.e. derived from the price). \\nLevel 3: Use of factors for the valuation of the asset or liability that are based on non-observable market \\ndata. \\nReclassification between different levels of the fair value hierarchy are recorded at the end of the reporting \\nperiod in which the change occurred. \\nThe fair value of the investments held for strategic reasons only refers to equity instruments of the category \\n\\\"fair value through OCI\\\" (FVOCI) and is determined on the basis of level 1. The market values of the \\nderivative assets and liabilities as well as the fair value of the promissory note loans were determined in \\naccordance with level 2. \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n323 \\nThe following table shows the measurement techniques used for determining Level 2 fair values for \\nfinancial instruments. \\n↗ T.38 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE - LEVEL 2 \\nType \\nMeasurement technique \\nMaterial, non-\\nobservable input \\nfactors \\nConnection between \\nmaterial, non-\\nobservable input \\nfactors and fair value \\nmeasurement \\nCurrency forward \\ntransactions \\nThe fair values are determined on the basis of \\ncurrent market parameters, i.e., reference prices \\nobservable on the market, taking into account \\nforward premiums and discounts. The discounted \\nresult of the comparison of the forward price on the \\nreporting date with the forward price of the \\nvaluation date is included in the measurement. \\nThe fair values are also checked for the \\ncounterparty's non-performance risk. In doing this, \\nPUMA calculates credit value adjustments (CVA) or \\ndebt value adjustments (DVA) on the basis of an \\nup/down method, taking current market information \\ninto account, in particular the creditworthiness of \\nthe company's business partners. No material \\ndeviations were found, so that no adjustments were \\nmade to the fair value determined. \\nNot applicable \\nNot applicable \\nCurrency options \\nThe valuation is based on Garman Kohlhagen model, \\nan extended version of the Black Scholes model. \\nNot applicable \\nNot applicable \\nPromissory note \\nloans \\nThe valuation takes into account the cash value of \\nexpected payments, discounted using a risk-\\nadjusted discount rate. \\nNot applicable \\nNot applicable \\nInterest options \\nThe valuation is based on the Black Scholes model. \\nNot applicable \\nNot applicable \\n \\n \\n \\n \\n \\nOf the fair value of the derivatives with a hedge relationship with positive market values of € 24.2 million \\n(previous year: € 58.6 million), € 24.5 million (previous year: € 65.9 million) related to the valuation of the \\nspot component. Of the fair value of the derivatives with a hedge relationship with negative market values of \\n€ 33.1 million (previous year: € 36.5 million), € 40.7 million (previous year: € 46.9 million) related to the \\nvaluation of the spot component. \\nCash and cash equivalents, trade receivables and other receivables have short maturities. Accordingly, as of \\nthe reporting date, the carrying amount approximates fair value. Receivables are stated at nominal value, \\ntaking into account deductions for default risk. \\nThe fair values of other financial assets correspond to their carrying amount, as the interest calculation \\noccurs at the prevailing market interest rates on the balance sheet date. Other (current and non-current) \\nfinancial assets include € 40.3 million (previous year: € 37.8 million) that were pledged as rental deposits at \\nusual market rates. \\nTrade payables have short residual maturities; their carrying amounts therefore approximate fair value. \\nThe remaining financial liabilities have short residual maturities; the recognised amounts therefore \\napproximate fair value. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n324 \\nNET RESULT BY VALUATION CATEGORIES \\nThe following table shows the net result by valuation category: \\n↗ T.39 NET GAINS/LOSSES FROM FINANCIAL INSTRUMENTS (in € million) \\n \\n2023\\n2022\\nFinancial assets at amortised cost (AC) \\n5.8\\n26.0\\nFinancial liabilities at amortised cost (AC) \\n-89.3\\n-7.1\\nDerivatives without hedging relationship measured at fair value through profit or loss \\n(FVPL) \\n7.7\\n-47.6\\nFinancial assets measured at fair value through other comprehensive income (FVOCI) \\n-0.5\\n-3.4\\n \\n \\n \\n \\nThe net result was determined by taking into account interest income and expense, currency exchange \\neffects, changes in provisions for risks as well as gains and losses from disposal. It also includes effects \\nfrom the fair value measurement of derivatives without a hedging relationship. \\nThe net result includes interest income of € 36.6 million (previous year: € 31.8 million) and interest expenses \\nof € 47.7 million (previous year: € 15.2 million) according to the effective interest method. \\nGeneral administrative expenses include changes in risk provisions for receivables. \\nDISCLOSURES RELATING TO FINANCIAL RISKS \\nThe PUMA Group is exposed to the following risks from the use of financial instruments: \\n• Default risk \\n• Liquidity risk \\n• Market risk \\nThese risks and the principles of risk management are explained below. \\nPRINCIPLES OF RISK MANAGEMENT \\nThe Management Board of PUMA SE is responsible for developing and monitoring risk management in the \\nPUMA Group. To this end, the Management Board has set up a Risk Management Committee that is \\nresponsible for designing, reviewing and adapting the risk management system. The Risk Management \\nCommittee regularly reports to the Management Board on its work. \\nThe guidelines for the risk management system define the responsibilities, tasks and processes of the risk \\nmanagement system. The guidelines for the risk management system and the risk management system \\nitself are reviewed regularly in order to be able to pick up on any changes in market conditions and PUMA's \\nactivities and incorporate them accordingly. \\nThe Audit Committee, on the one hand, monitors the Management Board's compliance with the guidelines \\nand the Group risk management processes. On the other hand, the Audit Committee monitors the \\neffectiveness of the risk management system with regard to the risks to which the PUMA Group is exposed. \\nThe Internal Audit department supports the Audit Committee in its monitoring tasks. To this end, regular \\naudits and ad hoc audits are also carried out by the Internal Audit department. Their results are reported \\ndirectly to the Audit Committee. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n325 \\nDEFAULT RISK \\nDefault risk is the risk of financial losses if a customer or party to a financial instrument fails to meet its \\ncontractual obligations. Default risk arises in principle from trade receivables and from other contractual \\nfinancial obligations of the counterparty, such as bank deposits and derivative financial instruments. \\nWithout taking into account any existing credit insurance policies or other guarantees received, the \\nmaximum default risk is equal to the carrying amount of the financial assets. \\nAt the end of financial year 2023, there was no relevant concentration of default risk by customer type or \\nregion. Default risk is mainly influenced by individual customer characteristics. In accordance with our \\ncredit guidelines, new customers are checked for creditworthiness before we offer them our regular \\npayment and delivery terms. In addition, we set specific receivables limits for each customer. In particular, \\nthe international credit insurance programme that PUMA has concluded for all major subsidiaries \\ncontributes to risk mitigation. The creditworthiness of our customers and the limits on receivables are \\nmonitored on an ongoing basis, which also includes requests for individual credit limits from credit \\ninsurance providers for all customers who have external accounts that exceed a certain value limit. The \\ncredit insurer's response to such credit limit requests always includes information on the creditworthiness. \\nCustomers with a credit rating that does not meet the minimum requirements set may, as a rule, only \\nacquire products against advance payment. \\nFurther activities to reduce default risk include retention of title clauses, and also in individual cases the \\nselective sale of trade receivables (without recourse) and the obtaining of bank guarantees or parent \\ncompany guarantees for our customers. \\nAt the end of the financial year 2023, no individual customers accounted for more than 10% of trade \\nreceivables. \\nThe central Treasury department has a comprehensive overview of the banks involved in currency hedging \\ninstruments and the management of cash and cash equivalents. Business with banks is focused on core \\nbanks with the appropriate credit rating (currently a minimum rating of BBB+ or better), while maximum \\nrisk amounts are specified for banks that have also been engaged in addition to this. The counterparty risks \\nresulting from this are reviewed at least once every six months. \\nPUMA held derivative financial instruments with a positive market value of € 35.8 million in 2023 (previous \\nyear: € 118.3 million). The maximum default risk for an individual bank from such assets amounted to \\n€ 7.5 million (previous year: € 24.8 million). \\nIn accordance with IFRS 7, the following table contains further information on the offsetting options for \\nderivative financial assets and liabilities. Most agreements between financial institutions and PUMA include \\na mutual right to offsetting; the right to offsetting is only enforceable in the event of the default of a business \\npartner. Therefore, the criteria for offsetting in the balance sheet are not met. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n326 \\nThe carrying amounts of the derivative financial instruments affected by the aforementioned offsetting \\nagreements are shown in the following table: \\n↗ T.40 OFFSETTING POSSIBILITIES OF DERIVATIVE FINANCIAL INSTRUMENTS (in € million) \\n \\n2023\\n2022\\nAssets \\n \\n \\nGross amounts of financial assets recognised in the balance sheet \\n35.8\\n118.3\\nFinancial instruments that qualify for offsetting \\n0.0\\n0.0\\n= Net book value of financial assets \\n35.8\\n118.3\\nOffsettable on the basis of framework agreements \\n-34.5\\n-50.6\\nTotal net value of financial assets \\n1.3\\n67.7\\n \\n \\n \\n \\n \\n2023\\n2022\\nLiabilities \\n \\n \\nGross amounts of financial liabilities recognised in the balance sheet \\n58.2\\n52.4\\nFinancial instruments that qualify for offsetting \\n0.0\\n0.0\\n= Net book value of financial liabilities \\n58.2\\n52.4\\nOffsettable on the basis of framework agreements \\n-34.5\\n-50.6\\nTotal net value of financial liabilities \\n23.7\\n1.8\\n \\n \\n \\n \\nLIQUIDITY RISK \\nLiquidity risk is the risk that the Group may not be able to meet its financial liabilities by delivering cash or \\nother financial assets in accordance with the agreement. The objective of the Group in managing liquidity is \\nto ensure that, as far as possible, sufficient cash and cash equivalents are always available in order to meet \\nthe payment obligations upon maturity, under both normal and strained conditions. \\nPUMA aims to maintain the amount of cash, cash equivalents and fixed loan commitments at a level that \\ncovers the effects of an assumed worst-case scenario. This scenario is based on the events and financial \\nimpact of the COVID-19 crisis in Q2 2020, which must be covered accordingly. \\nPUMA has confirmed credit lines amounting to a total of € 1,552.8 million (previous year: € 1,271.0 million), of \\nwhich € 986.1 million had not been used as at 31 December 2023 (previous year: € 943.7 million). \\nNo financial liabilities were utilised from credit lines granted only until further notice. \\nThe effective interest rate of the financial liabilities ranged from 0.0% to 1.3% (previous year: 0.0% to 0.9%). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n327 \\nThe following table shows the future cash outflows from the financial liabilities existing as at the reporting \\ndate, as well as the contractual cash flows in connection with derivatives with a negative market value. \\nThese are non-discounted gross amounts including expected interest payments, but exclude presentation of \\nthe effects of offsetting: \\n↗ T.41 CONTRACTUAL CASH FLOWS FROM FINANCIAL LIABILITIES 2023 (in € million) \\n \\nTotal\\n2024\\n2025\\n2026 et \\nseq.\\nNon-derivative financial liabilities \\n \\n \\n \\n \\nBorrowings \\n634.0\\n166.9\\n85.1\\n382.0\\nTrade payables \\n1,499.8\\n1,499.8\\nOther liabilities \\n31.8\\n30.9\\n0.5\\n0.4\\nDerivative financial liabilities \\n47.0\\n43.8\\n2.2\\n1.0\\nCash inflow derivative financial liabilities \\n-2,876.6\\n-2,397.1\\n-479.5\\nCash outflow derivative financial liabilities \\n2,923.6\\n2,440.8\\n481.8\\n1.0\\n \\n \\n \\n \\n \\n \\nThe following values were determined for the previous year: \\n↗ T.42 CONTRACTUAL CASH FLOWS FROM FINANCIAL LIABILITIES 2022 (in € million) \\n \\nTotal\\n2023\\n2024\\n2025 et seq.\\nNon-derivative financial liabilities \\n \\n \\n \\n \\nBorrowings \\n332.7\\n78.3\\n126.6\\n127.8\\nTrade payables \\n1,734.9\\n1,734.9\\nOther liabilities \\n37.5\\n36.5\\n0.8\\n0.2\\nDerivative financial liabilities \\n34.5\\n34.2\\n0.3\\nCash inflow derivative financial liabilities \\n-1,905.7\\n-1,303.9\\n-601.8\\nCash outflow derivative financial liabilities \\n1,940.2\\n1,338.1\\n602.1\\n \\n \\n \\n \\n \\n1) The previous year's figures have been adjusted \\n \\nMARKET RISK \\nMarket risk is the risk that market prices, such as exchange rates, share prices or interest rates, may \\nchange, thereby affecting the income of the Group or the value of the financial instruments held. \\nThe aim of market risk management is to manage and control market risk within acceptable margins while \\noptimising returns. \\nTo manage market risks, PUMA acquires and sells derivatives and also enters into financial liabilities. All \\ntransactions are carried out within the framework of the Group's risk management regulations. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n328 \\nCURRENCY RISK \\nPUMA is exposed to transactional foreign currency risks such that the quoted currencies used for \\nacquisition, disposal and credit transactions and for receivables do not match the functional currency of the \\nGroup companies. \\nIn financial year 2023, PUMA designated currency hedges in Cashflow Hedge Accounting in order to hedge \\nthe amount payable of purchases denominated in USD, and converted to euros, as well as for other currency \\nrisks resulting from internal resale to PUMA subsidiaries. \\nFurthermore, currency swaps and forward exchange contracts are used to hedge foreign exchange risks \\nwhen measuring intra-group loans denominated in foreign currencies. \\nThe estimated foreign currency risks are initially subjected to a quantitative materiality test, while \\nsimultaneously taking hedging costs into account. Material risks are then hedged, in accordance with the \\nGroup directive, up to a hedging ratio of up to 95% of the estimated foreign currency risks from expected \\nacquisition and disposal transactions over the next 12 to 15 months. Forward exchange contracts and \\ncurrency options, usually with a term of around 12 months from the reporting date, are used to hedge the \\nforeign currency risk. For significant risks that are subject to large hedging costs, high hedging ratios can \\nonly be achieved over shorter terms. \\nThe summarised quantitative information about the Group's currency risk is as follows: \\n↗ T.43 EXPOSURE TO FOREIGN CURRENCY RISK 2023 (in € million) \\nas of 31 December 2023 \\nUSD\\nMXN\\nJPY\\nRisk from forecast transactions \\n-1,716.4\\n269.1\\n190.0\\nBalance sheet risk \\n-628.3\\n78.8\\n13.4\\nTotal gross risk \\n-2,344.7\\n347.9\\n203.4\\nHedged with currency options \\n18.1\\n0.0\\n-51.5\\nHedged with currency forward contracts \\n1,933.1\\n-211.1\\n-110.3\\nNet risk \\n-393.5\\n136.7\\n41.6\\n \\n \\n \\n \\n \\n↗ T.44 EXPOSURE TO FOREIGN CURRENCY RISK 2022 (in € million) \\nas of 31 December 2022 \\nUSD\\nGBP\\nJPY\\nRisk from forecast transactions \\n-1,665.5\\n104.5\\n205.2\\nBalance sheet risk \\n-307.1\\n76.6\\n28.3\\nTotal gross risk \\n-1,972.6\\n181.0\\n233.4\\nHedged with currency forward contracts \\n1,833.9\\n-171.9\\n-181.6\\nNet risk \\n-138.7\\n9.1\\n51.9\\n \\n \\n \\n \\n \\nCurrency forward contracts and the risk from forecast transactions were calculated on a one-year basis. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n329 \\nThe nominal amounts of open exchange rate-hedging transactions refer primarily to currency forward \\ncontracts in a total amount of € 3,745.0 million (previous year: € 3,792.6 million). \\nThe market values of open exchange rate-hedging transactions on the balance sheet date consist of: \\n↗ T.45 MARKET VALUE OF EXCHANGE RATE HEDGING CONTRACTS (in € million) \\n \\n2023\\n2022\\nCurrency forward contracts \\n35.5\\n118.3\\nCurrency options \\n0.3\\n0.0\\nCurrency hedging contracts, assets \\n35.8\\n118.3\\nCurrency forward contracts \\n56.0\\n52.4\\nCurrency options \\n1.2\\n0.0\\nCurrency hedging contracts, liabilities \\n57.2\\n52.4\\nNet \\n-21.4\\n66.0\\n \\n \\n \\n \\nThe net risk position and the average hedging rates are broken down as follows: \\n↗ T.46 AVERAGE HEDGING RATES \\n \\n2023 \\n2022 \\n \\nCurrent\\nNon-current\\nCurrent\\nNon-current \\nCurrency risk \\n \\n \\n \\n \\nNet risk position (€ million) \\n1,076.5\\n504.2\\n1,167.5\\n508.2 \\n \\n \\n \\n \\n \\nCurrency forward contracts \\n \\n \\n \\n \\nAverage EUR/USD exchange rate \\n1.108\\n1.110\\n1.092\\n1.069 \\nAverage EUR/MXN exchange rate \\n19.978\\n-\\n21.636\\n- \\nAverage EUR/JPY exchange rate \\n138.560\\n148.736\\n133.205\\n137.338 \\nCurrency options \\n \\n \\n \\n \\nAverage EUR/USD exchange rate (Put/Call) \\n1.050/1.144\\n1.039/1.131\\n-\\n- \\nAverage EUR/MXN exchange rate (Put/Call) \\n-\\n-\\n-\\n- \\nAverage EUR/JPY exchange rate (Put/Call) \\n140.198/157.850\\n143.733/161.366\\n-\\n- \\n \\n \\n \\n \\n \\n \\nCurrency sensitivity analysis \\nIn order to disclose market risks, IFRS 7 requires sensitivity analysis that show the effects of hypothetical \\nchanges in relevant risk variables on earnings and equity. The periodic effects are determined by relating \\nthe hypothetical changes caused by the risk variables to the balance of the financial instruments held as of \\nthe balance sheet date. The underlying assumption is that the balance as of the balance sheet date is \\nrepresentative for the entire year. \\nCurrency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a \\ncurrency which differs from the functional currency and are monetary in nature. Differences resulting from \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n330 \\nthe conversion of the individual financial statements to the group currency are not taken into account. All \\nnon-functional currencies in which PUMA employs financial instruments are generally considered to be \\nrelevant risk variables. \\nThe currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies. \\nThis also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also \\nreassessed as part of the sensitivity analysis. \\nThe following table shows the increase or decrease of profit or loss or cash flow hedge reserve in equity in \\nthe event of a 10% appreciation or depreciation against the euro spot price. It is assumed that all other \\ninfluencing factors, including interest rates and commodity prices, remain constant. The effects of the \\nforecasted operating cash flows are also ignored. \\n↗ T.47 SENSITIVITY ANALYSIS FOR FOREIGN EXCHANGE RATE CHANGES 2023 (in € million) \\nas of 31 December 2023 \\nUSD\\nMXN\\nJPY\\nNominal amounts of outstanding currency forward contracts \\n2,413.7\\n-211.1\\n-123.7\\n \\nEUR +10%\\nEUR +10%\\nEUR +10%\\nEquity \\n-151.3\\n17.9\\n-1.0\\nProfit or loss \\n2.0\\n-0.6\\n-0.1\\n \\nEUR -10%\\nEUR -10%\\nEUR -10%\\nEquity \\n218.9\\n-11.0\\n-23.7\\nProfit or loss \\n-2.4\\n0.8\\n0.1\\n \\n \\n \\n \\n \\n↗ T.48 SENSITIVITY ANALYSIS FOR FOREIGN EXCHANGE RATE CHANGES 2022 (in € million) \\nas of 31 December 2022 \\nUSD\\nGBP\\nJPY\\nNominal amounts of outstanding currency forward contracts \\n2,428.2\\n-205.7\\n-233.8\\n \\nEUR +10%\\nEUR +10%\\nEUR +10%\\nEquity \\n-186.6\\n7.7\\n13.9\\nProfit or loss \\n5.7\\n-0.1\\n0.4\\n \\nEUR -10%\\nEUR -10%\\nEUR -10%\\nEquity \\n221.0\\n-18.8\\n-28.7\\nProfit or loss \\n-6.9\\n0.1\\n-0.5\\n \\n \\n \\n \\n \\nCurrency risks and other risk and opportunity categories are discussed in greater detail in the Combined \\nManagement Report in the Risk and Opportunity Report. \\nINTEREST-RATE RISKS \\nThe interest rate risk in the PUMA Group is primarily attributable to variable-interest borrowings. Interest \\nrate management is carried out centrally by the Treasury division on the basis of specified limits. Within this \\nframework, the division manages and monitors interest rate risk through the use of interest rate \\nderivatives. Transactions are only concluded with counterparties that are creditworthy. Derivatives financial \\ninstruments must not be used for speculative purposes, but only to hedge risks related to underlying \\ntransactions. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n331 \\nAs of 31 December 2023, € 207.5 million (previous year: € 67.5 million) of the borrowings were subject to \\nvariable interest. \\nInterest rate collars were also concluded at the same amount and with the same maturity to hedge the risk \\nof interest rate changes for the variable interest-rate promissory note tranches in the amount of \\n€ 150.0 million in May 2023. \\nThere is an economic relationship between the underlying and hedging transactions, since the terms of the \\ninterest-rate collars correspond to those of the floating-rate loans. This applies to the nominal amount, \\nmaturity, payment and interest adjustment dates. The underlying risk of interest rate collars is identical to \\nthat of the hedged risk components. A hedge ratio of 1:1 has therefore been established for the hedging \\nrelationship. \\nThe net risk position and the average hedged interest rate are as follows: \\n↗ T.49 AVERAGE HEDGED INTEREST RATE \\n \\n2023 \\n \\nCurrent \\nNon-current \\nNet risk position (€ million) \\n54.5\\n3.0\\nInterest rate risk \\n \\n \\nAverage hedged interest rate in % based on current fixing (Cap/Floor) \\n \\n4.7%/1.5%\\n \\n \\n \\n \\nAs there were no significant variable interest-bearing liabilities in the previous year and no interest hedging \\ntransactions were therefore used, the information for the previous year is not applicable. \\nInterest sensitivity analysis \\nThe result in the Group depends on the development of the market interest rate level. A change in the \\ninterest rate level would have an impact on the Group's income and equity. The analysis carried out includes \\nall interest-bearing financial instruments that are subject to interest rate risk. \\nA change in the interest rate level of 100 basis points would have the following effects on profit or loss and \\nthe cash flow hedge reserve in equity \\n↗ T.50 SENSITIVITY ANALYSIS FOR INTEREST RATE RISK (in € million) \\n \\n2023 \\n \\n+1.0%\\n-1.0%\\nEquity \\n0.8\\n0.0\\nProfit or loss \\n0.4\\n-1.9\\n \\n \\n \\n \\nAs there were no significant variable interest-bearing liabilities in the previous year, no interest-rate \\nsensitivity analysis was prepared for the previous year. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n332 \\nINFORMATION ON HEDGING INSTRUMENTS THAT ARE IN A HEDGING RELATIONSHIP \\nOn the balance sheet date, the amounts relating to items designated as hedged underlying transactions with regard to exchange rate risks were as follows: \\n↗ T.51 DESIGNATED HEDGE ITEMS (in € million) \\n \\nChange in value for the calculation of \\nhedge ineffectiveness \\nReserve for cash flow hedges \\nBalance remaining in the cash flow hedging \\nreserve from hedging relationships to which \\nhedge accounting is no longer applied \\nas of 31 December 2023 \\n \\n \\n \\nCurrency risk – \\nsales transactions \\n-8.2 \\n19.6\\n0.0\\nCurrency risk – \\nsourcing transactions \\n-5.4 \\n-23.5\\n0.0\\nInterest rate risk \\n0.0 \\n0.0\\n0.0\\nas of 31 December 2022 \\n \\n \\n \\nCurrency risk – \\nsales transactions \\n-31.1 \\n29.8\\n0.0\\nCurrency risk – \\nsourcing transactions \\n188.1 \\n-15.7\\n0.0\\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n333 \\nThe amounts relating to items designated as hedging instruments have the following effects on the statement of financial position and income statement: \\n↗ T.52 DESIGNATED HEDGE INSTRUMENTS (in € million) \\n \\nNominal \\nvalue \\nCarrying amount \\n \\nin the financial year 2023 \\n \\n \\nAssets\\nLiabilities\\nItem in the balance\\nsheet, in which the\\nhedging instrument\\nis included\\nChanges in the \\nvalue of the \\nhedging \\ninstrument, \\nrecognized in \\nother \\ncomprehensive \\nincome \\nIneffectiveness\\nof the hedging\\ninstrument,\\nrecognized in the\\nincome\\nstatement\\nItems in the\\nincome \\nstatement, \\ncontaining the\\nineffectiveness\\nof the hedging\\nAmount \\ntransferred\\nfrom the \\nhedging reserve\\nto the inventory\\nacquisition cost\\nAmount \\nreclassified \\nfrom the \\nhedging reserve\\nto the income \\nstatement\\nItems in the\\nincome\\nstatement\\naffected by the\\nreclassification\\nas of 31 December 2023 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nCurrency risk – \\nsales transactions \\n1,082.2\\n22.3\\n-6.2\\nother current/\\nnon-current\\nfinancial assets/\\nliabilities\\n8.2 \\n-\\nFinancial \\nexpenses\\n-\\n29.8\\nSales\\nCurrency risk – \\nsourcing transactions \\n1,996.4\\n2.3\\n-34.5\\n5.4 \\n-\\n-12.9\\n-5.1\\nCost of sales\\nInterest rate risk \\n150.0\\n0.0\\n0.0\\n0.0 \\n-\\n-\\n0.0\\nFinancial\\nexpenses\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nin the financial year 2022 \\nas of 31 December 2022 \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nCurrency risk – \\nsales transactions \\n1,097.7\\n44.0\\n-3.5\\nother current/\\nnon-current\\nfinancial assets/\\nliabilities\\n31.1 \\n-\\nFinancial \\nexpenses\\n-\\n-16.7\\nSales\\nCurrency risk – \\nsourcing transactions \\n2,082.6\\n21.9\\n-43.4\\n-188.1 \\n-\\n91.9\\n144.0\\nCost of sales\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n334 \\nThe following table shows the reconciliation of the change in equity in relation to cash flow hedges: \\n↗ T.53 CHANGES IN THE RESERVE FOR CASH FLOW HEDGE (in € million) \\n \\n2023\\n2022\\nReserve for cash flow hedge as of 1 January \\n14.2\\n78.1\\nChange in fair value \\n \\n \\nThereof currency risk \\n-13.6\\n157.0\\nThereof interest rate risk \\n0.0\\n0.0\\nAmount included in the acquisition cost of non-financial assets \\n12.9\\n-91.9\\nAmount reclassified to the income statement \\n \\n \\nThereof currency risk \\n-27.5\\n-128.2\\nThereof interest rate risk \\n0.0\\n0.0\\nTax effect \\n10.1\\n-0.7\\nReserve for cash flow hedge as of 31 December \\n-3.9\\n14.2\\n \\n \\n \\n \\nA small portion of the originally planned sourcing and sales volume in foreign currencies did not transpire, \\nleading to an excess of hedging transactions. Hedge accounting was terminated for those sourcing and \\nsales transactions that were no longer expected to transpire, and the fair value was transferred as a profit \\nor loss from the cash flow hedge reserve to the income statement. As soon as any highly likely sourcing or \\nsales transaction is no longer expected to transpire, an offsetting transaction is concluded. Across all \\ncurrency pairs, an amount of € 5.5 million (previous year: € -14.8 million) was recognised in the income \\nstatement. \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n335 \\n15. PENSION PROVISIONS \\nPension provisions result from employees' claims and, if applicable, their survivors, for benefits which are \\nbased on the statutory or contractual regulations applicable in the respective country in the event of \\ninvalidity, death or when a certain retirement age has been reached. Pension commitments in the PUMA \\nGroup include both benefit- and contribution-based pension commitments and include both obligations \\nfrom current pensions and rights to pensions payable in the future. The pension entitlements are financed \\nby both provisions and funds. \\nThe risks associated with the pension commitments mainly concern the usual risks of benefit-based \\npension plans in relation to possible changes in the discount rate and inflation trends, and recipient \\nlongevity. In order to limit the risks of changed capital market conditions and demographic developments, \\nplans with the maximum obligations were agreed or insured for new hires a few years ago in Germany and \\nGreat Britain. The specific risk of obligations based on salary is low within the PUMA Group. The \\nintroduction of an annual cap for pensionable salary in the Great Britain plan in 2016 covers this risk for the \\nhighest obligations. The Great Britain plan is therefore classified as a non-salary obligation. \\n↗ T.54 PRESENT VALUE OF PENSION OBLIGATION 2023 (in € million) \\n \\nGermany\\nGreat Britain\\nOther \\ncompanies\\nPUMA Group\\nPresent value of pension obligation 31 December 2023 \\n \\n \\n \\n \\nSalary-based obligations \\n \\n \\n \\n \\nAnnuity \\n0.0\\n0.0\\n8.8\\n8.8\\nOne-off payment \\n0.0\\n0.0\\n9.1\\n9.1\\nNon-salary based obligations \\n \\n \\n \\n \\nAnnuity \\n49.3\\n31.9\\n0.0\\n81.2\\nOne-off payment \\n8.2\\n0.0\\n0.0\\n8.2\\nTotal \\n57.5\\n31.9\\n17.9\\n107.3\\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n336 \\nThe following values were determined in the previous year: \\n↗ T.55 PRESENT VALUE OF PENSION OBLIGATION 2022 (in € million) \\n \\nGermany\\nGreat Britain\\nOther \\ncompanies\\nPUMA Group\\nPresent value of pension obligation 31 December 2022 \\n \\n \\n \\n \\nSalary-based obligations \\n \\n \\n \\n \\nAnnuity \\n0.0\\n0.0\\n8.6\\n8.6\\nOne-off payment \\n0.0\\n0.0\\n9.3\\n9.3\\nNon-salary based obligations \\n \\n \\n \\n \\nAnnuity \\n48.9\\n29.6\\n0.0\\n78.5\\nOne-off payment \\n7.9\\n0.0\\n0.0\\n7.9\\nTotal \\n56.8\\n29.6\\n17.9\\n104.3\\n \\n \\n \\n \\n \\n \\nThe main pension arrangements are described below: \\nThe general pension scheme of PUMA SE essentially provides for pension payments to a maximum amount \\nof € 127.82 per month and per eligible employee. It was closed for new members beginning in 1996. In \\naddition, PUMA SE provides individual commitments (fixed sums in different amounts) as well as \\ncontribution-based individual benefits (in part from salary conversion). The contribution-based individual \\nbenefits are insured plans. There are no statutory minimum funding requirements. The scope of obligation \\nfor domestic pension claims amounts to € 57.5 million at the end of 2023 (previous year: € 56.8 million) and \\nthus comprises 53.6% of the total obligation. The fair value of the plan assets relative to domestic \\nobligations amounts to € 50.4 million. The corresponding pension provision amounts to € 7.1 million. \\nThe defined benefit plan in Great Britain has not been available to new hires since 2006. This defined benefit \\nplan includes salary and length of service-based commitments to provide old age, invalidity and surviving \\ndependents' retirement benefits. In 2016, a growth cap of 1% p.a. was introduced on the pensionable salary. \\nPartial capitalisation of the old-age pension is permitted. There are statutory minimum funding \\nrequirements. The obligations regarding pension claims under the defined benefit plan in the UK amount to \\n€ 31.9 million at the end of 2023 (previous year: € 29.6 million) and thus account for 29.7% of the total \\nobligation. The obligation is covered by assets amounting to € 29.7 million. The provision amounts to \\n€ 2.2 million. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n337 \\nThe present value of the pension obligation has developed as follows: \\n↗ T.56 DEVELOPMENT OF PRESENT VALUE OF PENSION OBLIGATION (in € million) \\n \\n2023\\n2022\\nPresent value of pension obligation 1 January \\n104.3\\n122.3\\nCost of the pension obligation earned in the reporting year \\n2.0\\n2.5\\nInterest expense on pension obligation \\n4.4\\n1.9\\nEmployee contributions \\n0.6\\n8.3\\nBenefits paid \\n-4.5\\n-3.4\\nEffects from transfers \\n0.0\\n0.0\\nActuarial gains (-) and losses \\n0.1\\n-25.1\\nCurrency exchange effects \\n0.5\\n-2.2\\nPresent value of pension obligation 31 December \\n107.3\\n104.3\\n \\n \\n \\n \\nThe changes in the plan assets are as follows: \\n↗ T.57 DEVELOPMENT OF PLAN ASSETS (in € million) \\n \\n2023\\n2022\\nPlan assets 1 January \\n82.4\\n90.7\\nInterest income on plan assets \\n3.5\\n1.4\\nActuarial gains and losses (-) \\n-0.9\\n-15.0\\nEmployer contributions \\n1.2\\n1.0\\nEmployee contributions \\n0.6\\n8.3\\nBenefits paid \\n-2.2\\n-2.3\\nCurrency exchange effects \\n0.6\\n-1.7\\nPlan assets 31 December \\n85.2\\n82.4\\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n338 \\nThe pension provision for the Group is derived as follows: \\n↗ T.58 PENSION PROVISION (in € million) \\n \\n2023\\n2022\\nPresent value of pension obligation from benefit plans \\n107.3\\n104.3\\nFair value of plan assets \\n-85.2\\n-82.4\\nFinancing status \\n22.1\\n21.9\\nPension provision 31 December \\n22.1\\n21.9\\nThereof assets \\n0.4\\n0.5\\nThereof liabilities \\n22.5\\n22.4\\n \\n \\n \\n \\nIn 2023, benefits paid amounted to € 4.5 million (previous year: € 3.4 million). Contributions in 2024 are \\nexpected to amount to € 3.0 million. Of this, € 0.9 million is expected to be paid directly by the employer. \\nEmployer contributions to external plan assets amounted to € 1.2 million in 2023 (previous year: \\n€ 1.0 million). Employer contributions in 2024 are expected to amount to € 0.8 million. \\nThe changes in pension provisions are as follows: \\n↗ T.59 DEVELOPMENT OF THE PENSION PROVISION (in € million) \\n \\n2023\\n2022\\nPension provision 1 January \\n21.9\\n31.6\\nPension expense \\n2.8\\n3.0\\nActuarial gains (-) and losses recorded in other comprehensive income \\n1.0\\n-10.1\\nEmployer contributions \\n-1.2\\n-1.0\\nDirect pension payments made by the employer \\n-2.3\\n-1.1\\nTransfer values \\n0.0\\n0.0\\nCurrency exchange differences \\n-0.2\\n-0.5\\nPension provision 31 December \\n22.1\\n21.9\\nThereof assets \\n0.4\\n0.5\\nThereof liabilities \\n22.5\\n22.4\\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n339 \\nThe expenses in financial year 2023 are structured as follows: \\n↗ T.60 EXPENSES FOR DEFINED BENEFIT PLANS (in € million) \\n \\n2023\\n2022\\nCost of the pension obligation earned in the reporting year \\n2.0\\n2.5\\nInterest expense on pension obligation \\n4.4\\n1.9\\nInterest income on plan assets \\n-3.5\\n-1.4\\nAdministration costs \\n0.0\\n0.0\\nExpenses for defined benefit plans \\n2.8\\n3.0\\nThereof personnel costs \\n1.9\\n2.5\\nThereof financial costs \\n0.9\\n0.5\\n \\n \\n \\n \\nIn addition to the defined benefit pension plans, PUMA also makes contributions to defined contribution \\nplans. Payments for financial year 2023 amounted to € 19.8 million (previous year: € 18.5 million). \\nActuarial gains and losses recorded in Other Comprehensive Income: \\n↗ T.61 GAINS AND LOSSES RECORDED IN OTHER COMPREHENSIVE INCOME (in € million) \\n \\n2023\\n2022\\nRevaluation of pension commitments \\n0.1\\n-25.1\\nActuarial gains (-) and losses resulting from changes in demographic assumptions \\n-0.7\\n-0.1\\nActuarial gains (-) and losses resulting from changes in financial assumptions \\n0.0\\n-30.3\\nActuarial gains (-) and losses due to adjustments based on experience \\n0.8\\n5.3\\nRevaluation of plan assets \\n0.9\\n15.0\\nAmounts not recorded due to the maximum limit applicable to assets \\n0.0\\n0.0\\nAdjustment of administration costs \\n0.0\\n0.0\\nTotal revaluation amounts recorded directly in other comprehensive income \\n1.0\\n-10.1\\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n340 \\nPlan assets investment classes: \\n↗ T.62 PLAN ASSETS INVESTMENT CLASSES (in € million) \\n \\n2023\\n2022\\nCash and cash equivalents \\n0.3\\n0.1\\nEquity instruments \\n6.0\\n5.5\\nBonds \\n7.4\\n3.5\\nInvestment funds \\n3.2\\n3.0\\nDerivatives \\n10.0\\n11.6\\nReal estate \\n2.9\\n2.9\\nInsurance \\n50.6\\n49.4\\nOther \\n4.9\\n6.4\\nTotal plan assets \\n85.2\\n82.4\\n \\n \\n \\n \\nOf which, investment classes with a quoted market price: \\n↗ T.63 PLAN ASSETS WITH A QUOTED MARKET PRICE (in € million) \\n \\n2023\\n2022\\nCash and cash equivalents \\n0.3\\n0.1\\nEquity instruments \\n6.0\\n5.5\\nBonds \\n7.4\\n3.5\\nInvestment funds \\n3.2\\n3.0\\nDerivatives \\n10.0\\n11.6\\nReal estate \\n2.1\\n2.1\\nInsurance \\n0.0\\n0.0\\nOther \\n4.7\\n6.3\\nPlan assets with a quoted market price \\n33.7\\n32.1\\n \\n \\n \\n \\nPlan assets still do not include the Group's own financial instruments or real estate used by Group \\ncompanies. \\nThe plan assets are used exclusively to meet defined pension commitments. Legal requirements exist in \\nsome countries for the type and amount of financial resources that can be chosen; in other countries (for \\nexample Germany) the financing of pension commitments can be chosen freely. In Great Britain, a board of \\ntrustees made up of company representatives and employees is in charge of asset management. Its \\ninvestment strategy is aimed at long-term profits and tolerable volatility. It was last revised in 2022 to \\nreduce the risk profile. In 2023, the trustees continued to monitor the investment strategy. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n341 \\nThe following assumptions were used to determine pension obligations and pension expenses: \\n↗ T.64 ASSUMPTIONS USED TO DETERMINE THE PENSION OBLIGATIONS \\n \\n2023\\n2022\\nDiscount rate \\n4.55%\\n4.35%\\nFuture pension increases \\n1.93%\\n2.00%\\nFuture salary increases \\n2.05%\\n2.06%\\n \\n \\n \\n \\nThe indicated values are weighted average values. A standard interest rate of 4.45% was applied for the \\neurozone (previous year: 4.00%). \\nThe 2018 G Heubeck guideline tables were used as mortality tables for Germany. For Great Britain, the \\nmortality was assumed based on basic table series S2 taking into account life expectancy projections in \\naccordance with CMI2021 with a long-term trend of 1%. \\nThe following overview shows how the present value of pension obligations from benefit plans would have \\nbeen affected by changes to significant actuarial assumptions. \\n↗ T.65 SENSITIVITY ANALYSIS FOR PENSION OBLIGATION (in € million) \\n \\n2023\\n2022\\nEffect on present value of pension obligations if \\n \\n \\nthe discount rate were 50 basis points higher \\n-3.7\\n-3.7\\nthe discount rate were 50 basis points lower \\n4.2\\n4.1\\n \\n \\n \\n \\nSalary and pension trends have only a negligible effect on the present value of pension obligations due to \\nthe structure of the benefit plans. \\nThe weighted average duration of pension obligations is around 12 years (previous year: around 11 years). \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n342 \\n16. OTHER PROVISIONS \\n↗ T.66 OTHER PROVISIONS (in € million) \\n \\n2022\\n \\n \\n \\n \\n2023 \\n2022\\n \\n \\nCurrency \\nadjustments, \\nretransfers \\nAdditions\\nUtilization\\nReversal\\n \\nthereof non-\\ncurrent\\nthereof non-\\ncurrent\\nProvisions for: \\n \\n \\n \\n \\n \\n \\n \\n \\nWarranties \\n2.7\\n-0.1 \\n0.5\\n-0.6\\n-0.3\\n2.1\\n0.0\\n0.0\\nPurchasing risks \\n7.1\\n-0.1 \\n5.9\\n-4.6\\n-0.9\\n7.4\\n0.0\\n0.0\\nLitigation risks \\n26.6\\n-0.7 \\n6.1\\n-15.2\\n-2.8\\n13.9\\n7.5\\n8.4\\nRestoration obligations \\n17.0\\n-0.8 \\n1.9\\n-0.8\\n-0.5\\n16.9\\n13.9\\n14.1\\nPersonnel provisions \\n7.0\\n0.4 \\n2.6\\n-4.1\\n0.0\\n5.9\\n5.9\\n7.0\\nOther \\n19.3\\n-0.2 \\n5.5\\n-6.1\\n-9.8\\n8.7\\n0.0\\n0.0\\nTotal \\n79.8\\n-1.4 \\n22.3\\n-31.5\\n-14.3\\n55.0\\n27.3\\n29.5\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nThe warranty provision is determined on the basis of the historical value of sales generated during the past six months. It is expected that the majority of these expenses \\nwill fall due within the first six months of the next financial year. Purchasing risks relate primarily to materials and moulds that are required for the manufacturing of \\nshoes. \\nPersonnel provisions mainly relate to non-current variable compensation components. The risks arising from legal disputes relate to any form of legal dispute, including \\nthose relating to trademark and patent rights. The other provisions relate to other risks, in particular those associated with sourcing. \\nCurrent provisions are expected to be paid out in the following year, non-current provisions are expected to be paid out in a period of up to ten years. There are no \\nsignificant compounding effects. The recognition and valuation of provisions is based on past experience of similar transactions. All events until the preparation of the \\nconsolidated financial statements are taken into account here.\\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n343 \\n \\n17. EQUITY \\nSUBSCRIBED CAPITAL \\nThe subscribed capital corresponds to the subscribed capital of PUMA SE. \\nAs of the balance sheet date, the subscribed capital in accordance with the Articles of Association \\ncorresponds to € 150,824,640.00 and is divided into 150,824,640 no-par value voting shares. This corresponds \\nto a proportional amount of € 1.00 per share. \\nChanges in the outstanding shares: \\n↗ T.67 CHANGE IN OUTSTANDING SHARES \\n \\n2023\\n2022\\nOutstanding shares as of January 1, share \\n149,758,644\\n149,605,600\\nIssue of Treasury Stock, share \\n85,900\\n153,044\\nOutstanding shares as of December 31, share \\n149,844,544\\n149,758,644\\n \\n \\n \\n \\nThe issue of treasury stock relates to compensation in connection with promotional and advertising \\nagreements. \\n \\nCAPITAL RESERVE \\nThe capital reserve includes the premium from issuing shares, as well as amounts from the grant, \\nconversion and expiration of share options. \\n \\nREVENUE RESERVES INCL. RETAINED EARNINGS \\nThe revenue reserves incl. retained earnings include the net earnings of the financial year as well as the \\nearnings achieved in the past by the companies included in the consolidated financial statements to the \\nextent that it was not distributed. In addition, the valuation effects from the pension provision recognised in \\nother comprehensive income are recognised in retained earnings. \\n \\nDIFFERENCE FROM CURRENCY CONVERSION \\nThe equity item for currency conversion serves to record the foreign exchange differences from the \\nconversion of the financial statements of subsidiaries with non-euro accounting. \\n \\nCASH FLOW HEDGES \\nThe \\\"cash flow hedges\\\" item includes the market valuation of derivative financial instruments. The item \\namounting to € -3.9 million (previous year: € 14.2 million) is offset by deferred taxes of € 5.3 million (previous \\nyear: € -4.8 million). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n344 \\nTREASURY STOCK \\nThe resolution adopted by the Annual General Meeting on 7 May 2020 authorised the Company to purchase \\ntreasury shares up to a value of 10% of the share capital until 6 May 2025. By resolution of the Annual \\nGeneral Meeting of 5 May 2021, the Supervisory Board was authorised to issue the acquired shares to the \\nmembers of the Management Board of the Company, excluding the shareholders' subscription rights. By \\nresolution of the Annual General Meeting of 11 May 2022, the Management Board was, moreover, authorised \\nto issue the acquired shares, excluding the shareholders' subscription rights, as part of the Company's or \\nits affiliated companies' share-based payments or employee share programmes to individuals currently or \\nformerly in an employment relationship with the Company or one of its affiliated companies or to members \\nof the management of one of the Company's affiliated companies. If purchased through the stock exchange, \\nthe purchase price per share must not exceed 10% or fall below 20% of the average closing price for the \\nCompany's shares with the same attributes in the XETRA trading system (or a comparable successor \\nsystem) during the last three trading days prior to the date of purchase. \\nThe Company did not make use of the authorisation to purchase treasury stock during the reporting period. \\nAs of the balance sheet date, the Company holds a total of 980,096 PUMA shares in its own portfolio, which \\ncorresponds to 0.65% of the subscribed capital. \\n \\nAUTHORISED CAPITAL \\nAs of 31 December 2023, the Company's Articles of Association provide for authorised capital totalling \\n€ 30,000,000.00: \\nPursuant to Section 4.2. of the Articles of Association, the Management Board is authorised, with the \\nconsent of the Supervisory Board, to increase the Company's share capital by 4 May 2026 by up to \\n€ 30,000,000.00 (Authorised Capital 2021) by issuing new no-par value bearer shares against cash and/or \\nnon-cash contributions on one or more occasions. In the case of capital increases against contributions in \\ncash, the new shares may be acquired by one or several banks, designated by the Management Board, \\nsubject to the obligation to offer them to the shareholders for subscription (indirect subscription right). The \\nshareholders shall generally be entitled to subscription rights. However, the Management Board is \\nauthorised, with the consent of the Supervisory Board, to exclude shareholders' subscription rights in whole \\nor in part in the cases specified in Section 4.2. of the Articles of Association. \\nThe Management Board of PUMA SE did not make use of the existing authorised capital in the current \\nreporting period. \\n \\nCONDITIONAL CAPITAL \\nBy resolution of the Annual General Meeting of 11 May 2022, the Management Board was authorised until \\n10 May 2027, with the consent of the Supervisory Board, through one or more issues, altogether or in parts \\nand in various tranches at the same time, to issue bearer or registered convertible and/or option bonds, \\nprofit-sharing rights or participation bonds or a combination of these instruments with or without a term \\nlimitation in a total nominal amount of up to € 1,500,000,000.00. \\nThe share capital was conditionally increased by up to € 15,082,464.00 by issuing up to 15,082,464 new no-par \\nvalue bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented \\nto the extent that conversion/option rights are exercised, or the option/conversion obligations are met or \\ntenders are carried out and to the extent that other forms of performance are not applied. \\nNo use has been made of this authorisation to date. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n345 \\nDIVIDENDS \\nThe amounts eligible for distribution relate to the retained earnings of PUMA SE, which are determined in \\naccordance with German Commercial Law. \\nThe Management Board and the Supervisory Board will propose to the Annual General Meeting that a \\ndividend of € 0.82 (previous year: € 0.82) per circulating share, or a total of € 122.9 million (with respect to \\nthe circulating shares as of 31 December 2023), be distributed to the shareholders from the retained \\nearnings of PUMA SE for financial year 2023. \\nProposed appropriation of the retained earnings of PUMA SE: \\n↗ T.68 PROPOSED APPROPRIATION OF THE RETAINED EARNINGS OF PUMA SE \\n \\n2023\\n2022\\nRetained Earnings of PUMA SE as of December 31, € million \\n486.4\\n499.4\\nRetained earnings available for distribution, € million \\n486.4\\n499.4\\nDividend per share, € \\n0.82\\n0.82\\nNumber of outstanding shares*, share \\n149,844,544\\n149,758,644\\nTotal dividend*, € million \\n122.9\\n122.8\\nCarried forward to the new accounting period*, € million \\n363.6\\n376.6\\n \\n \\n \\n \\n* \\nPrevious year's values adjusted to the outcome of the Annual General Meeting \\n \\nNON-CONTROLLING INTERESTS \\nThis item comprises non-controlling interests. The composition is shown in chapter 28. \\n \\nCAPITAL MANAGEMENT \\nThe Group's objective is to retain a strong equity base in order to maintain both investor and market \\nconfidence, and to strengthen future business performance. \\nCapital management relates to the consolidated equity of PUMA. This is presented in the consolidated \\nstatement of financial position and in the consolidated statement of changes in equity. \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n346 \\n18. MANAGEMENT INCENTIVE PROGRAMMES \\nVirtual shares with cash settlement and other global long-term incentive programmes are used at PUMA to \\ntie the management to the Company with a long-term incentive effect. \\nThe current programmes are described below: \\nEXPLANATION OF \\\"VIRTUAL SHARES\\\", TERMED \\\"MONETARY UNITS\\\" (FULL TERM: MONETARY UNITS \\nPLAN – MUP) \\nMonetary units were granted on an annual basis to members of the Management Board beginning in 2013 as \\npart of a management incentive programme. Monetary units are based on the PUMA share performance. \\nEach of these monetary units entitles the holder to a cash payment at the end of the term. The entitled cash \\npayment compares the performance using the average virtual appreciation rights of the last thirty trading \\ndays before the start of the year of issue with the virtual appreciation rights of the last thirty trading days \\nbefore the exercise date. The maximum increase in value (cap) is limited to 300% of the amount allocated. \\nMonetary units are subject to a vesting period of three years. After that, there is an exercise period \\nbeginning 30 days after each quarterly publication date for a period of two years which can be freely used by \\nparticipants for the purposes of execution. Virtual shares are reduced on a \\\"pro rata\\\" basis in the event of \\nwithdrawal during the vesting period. This programme will expire and be replaced by the Performance \\nShare Plan. As a result, no more shares were issued from this programme in financial year 2023. \\n \\nEXPLANATION OF \\\"VIRTUAL SHARES\\\" (FULL TERM: PERFORMANCE SHARE PLAN – PSP) \\nVirtual shares were granted on an annual basis to members of the Management Board beginning in 2021 as \\npart of a management incentive programme. The virtual shares are based on the PUMA share performance. \\nEach of these virtual shares entitles the holder to a cash payment at the end of the term. However, the \\nSupervisory Board reserves the right to make the payment in PUMA shares instead of cash. This cash \\npayout is based on the PUMA closing prices for the last thirty trading days before the exercise date. The final \\nnumber of virtual shares is between 50% and 150%, depending on the relative \\\"Total Shareholder Returns\\\" \\n(TSR) compared to the MDAX index. The PUMA and MDAX index TSRs are calculated using the arithmetic \\nmeans of each of the TSR values on the 30 trading days before the start and end of the performance period. \\nThe averages calculated in this way for PUMA and the MDAX index are then compared with each other. The \\ndifference in percentage points between the PUMA TSR and the MDAX index TSR is then calculated (= TSR \\noutperformance in percentage points). The maximum increase in value (cap) is limited to 300% of the \\namount allocated. Virtual shares are subject to a vesting period of four years. They are generally paid out \\nwithin the first quarter of the fifth year after their issue. Virtual shares are reduced on a \\\"pro rata\\\" basis in \\nthe event of withdrawal during the vesting period. For the programmes issued in the financial years 2021 \\nand 2022, the DAX acts as the basis for calculating virtual shares, while the MDAX index is used starting \\nfinancial year 2023. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n347 \\nIn financial year 2023, income of € 2.4 million was recorded for this purpose on the basis of the employment contract commitments to the Management Board members \\n(previous year: income of € 0.9 million). \\n↗ T.69 VIRTUAL SHARES, MEMBERS OF THE MANAGEMENT BOARD \\nPlan \\nMUP\\nMUP\\nPSP\\nMUP\\nPSP\\nPSP\\n \\nIssue date \\n1/1/2020\\n1/1/2021\\n1/1/2021\\n1/1/2022\\n1/1/2022\\n1/1/2023\\n \\nTerm \\n5\\n5\\n4.25\\n5\\n4.25\\n4.25\\nYears\\nVesting period \\n3\\n3\\n4\\n3\\n4\\n4\\nYears\\nBase price PUMA share at issue \\n67.69\\n86.23\\n86.23\\n106.95\\n106.95\\n51.86\\nEUR/share\\nReference value PUMA share at the end of the financial year \\n0\\n55.46\\n49.25\\n55.46\\n46.3\\n50.62\\nEUR/share\\nWeighted share price at the time of exercise \\n62.03\\n0\\n0\\n0\\n0\\n0\\nEUR/share\\nParticipants in the year of issue \\n3\\n3\\n2\\n1\\n3\\n4\\nPersons\\nParticipants at the end of the financial year \\n3\\n3\\n2\\n1\\n3\\n4\\nPersons\\nNumber of monetary units/virtual shares as of 1 January 2023 \\n62,743\\n34,548\\n7,070\\n10,323\\n16,458\\n81,279\\nShares\\nNumber of monetary units/virtual shares exercised in the financial year \\n-62,743\\n0\\n0\\n0\\n0\\n0\\nShares\\nNumber of monetary units/virtual shares expired in the financial year \\n0\\n0\\n0\\n0\\n0\\n0\\nShares\\nFinal number of monetary units/virtual shares as of 31 December 2023 \\n0\\n34,548\\n7,070\\n10,323\\n16,458\\n81,279\\nShares\\n \\n \\n \\n \\n \\n \\n \\n \\n \\nThis commitment consisting of share-based remuneration transactions with cash compensation is recorded as personnel provisions and remeasured at fair value on \\nevery balance sheet date, provided it has not been exercised yet. The expenses are recorded pro rata over the vesting period. Based on the prorated average market price \\nover the last thirty trading days in 2023 and taking into account the intra-year exercises in 2023, the provisions for these programmes amounted to € 4.4 million at the end \\nof the financial year (previous year: € 5.8 million). \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n348 \\nEXPLANATION OF THE \\\"GAME CHANGER 2.0\\\" PROGRAMME \\nIn 2018, the Long-Term Incentive Programme (LTIP) \\\"Game Changer 2.0\\\" was launched. Participants in this \\nprogramme consist mainly of top executives reporting to the Management Board and individual key \\npositions in the PUMA Group. The objective of this programme is to retain these employees in the Company \\non a long-term basis and to allow them to share in the medium-term success of the Company. \\nThe LTIP \\\"Game Changer 2.0\\\" consists of two plan parts, a Performance Cash Plan and a Performance \\nShare Plan, each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's \\nfinancial performance, while the Performance Share Plan gives a reward for the performance of the \\nPUMA SE share in the capital market. \\nThe performance period of the Performance Cash Plan is three years and is based on the average medium-\\nterm targets of the PUMA Group in terms of EBIT, sales and cash flow or working capital as a percentage of \\nsales. Payment is made in cash and is limited to a maximum of 200% of the granted proportionate target \\namount (cap). \\nThe Performance Share Plan uses virtual shares to manage the incentive. The term is up to five years. This \\nis divided into a three-year performance period and a two-year exercise period in which the virtual shares \\nare paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24 months after the end \\nof the performance period). The average share price of the last 30 trading days before the exercise date \\ndetermines the value of a virtual share. The payout is limited to a maximum of 300% of the granted prorated \\ntarget amount (cap) and is only made if an exercise hurdle of +10% share-price appreciation is exceeded \\nonce during the performance period. \\n \\nEXPLANATION OF THE \\\"GAME CHANGER 2.0 – 2023\\\" PROGRAMME \\nIn 2020, the global \\\"Game Changer 2.0 – 2023\\\" programme, as outlined above, was launched. The \\nPerformance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As \\npart of the Performance Share component, payment is limited to a maximum of 300% of the granted \\nproportionate target amount (cap). \\nIn the reporting year, an amount of € 2.2 million (of which, € 0.8 million from the Performance Share Plan) \\nwas paid out to the participants. The payment was subject to the condition that the individual participants \\nwere in an unterminated employment relationship with a company in the PUMA Group as at 31 \\nDecember 2022. Furthermore, € -0.1 million was released for this programme in the year under review \\n(previous year: release of € 0.2 million). This resulted in a provision for this programme at the end of the \\nfinancial year of \\n€ 0.5 million (previous year: € 2.8 million). The Performance Share Plan portion accounted for € 0.5 million \\n(previous year: € 1.3 million). \\n \\nEXPLANATION OF THE \\\"GAME CHANGER 2.0 – 2024\\\" PROGRAMME \\nIn 2021, the global \\\"Game Changer 2.0 – 2024\\\" programme, as outlined above, was launched. The \\nPerformance Cash Plan is based on the following targets: EBIT (45%), working capital as a percentage of \\nsales (15%), and sales (40%). As part of the Performance Share component, payment is limited to a \\nmaximum of 300% of the granted proportionate target amount (cap). An employment relationship until \\n31 December 2023 is required. In the reporting year, € 0.2 million was released for this programme (previous \\nyear: € 0.0 million) and a proportionate amount of € 1.1 million (previous year: € 0.5 million) was set aside for \\nthis programme. This resulted in a provision for this programme at the end of the financial year of \\n€ 3.4 million (previous year: € 2.5 million). The Performance Share Plan portion accounted for € 1.2 million \\n(previous year: € 0.8 million). \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n349 \\nEXPLANATION OF THE \\\"GAME CHANGER 2.0 – 2026\\\" PROGRAMME \\nIn 2023, the global \\\"Game Changer 2.0 – 2026\\\" programme, as outlined above, was launched. The \\nPerformance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As \\npart of the Performance Share component, payment is limited to a maximum of 300% of the granted \\nproportionate target amount (cap). An employment relationship until 31 December 2024 is required. In the \\nreporting year, a prorated amount of € 1.8 million (previous year: € 0.0 million) was set aside for this \\nprogramme. This resulted in a provision for this programme at the end of the financial year of € 1.8 million \\n(previous year: € 0.0 million). The Performance Share Plan portion accounted for € 1.0 million (previous year: \\n€ 0.0 million). \\n \\nEXPLANATION OF THE \\\"ROAD 2 10B\\\" PROGRAMME \\nIn 2022, the \\\"Game Changer 2.0\\\" programme was replaced by the long-term incentive programme (LTIP) \\n\\\"Road 2 10B\\\". Participants in this programme consist of important professionals and managers within the \\nPUMA Group. The objective of this programme is to retain these employees in the Company on a long-term \\nbasis and to allow them to share in the medium-term success of the Company. \\nThe LTIP \\\"Road 2 10B\\\" consists of two plan parts, a Performance Cash Plan and a Performance Share Plan, \\neach with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's financial \\nperformance, while the Performance Share Plan gives a reward for the performance of the PUMA SE share \\nin the capital market. \\nThe Performance Cash Plan is focused on the following targets: EBIT, sales and working capital as a \\npercentage of sales based on the three-year plan set by the Management Board of PUMA SE. For \\nparticipants in the programme with an employment relationship at Group level, the target achievement is \\nbased on the following Group targets: EBIT (45%), sales (40%), and working capital as a percentage of sales \\n(15%). For participants in the programme with an employment relationship at the national or regional level, \\n50% of the target achievement is based on achieving the Group targets. The remaining 50% is based on \\nachieving the following targets at the national or regional level: EBIT (22.5%), sales (20%) and working \\ncapital as a percentage of sales (7.5%). Payment is limited to a maximum of 200% of the granted \\nproportionate target amount (cap). \\nThe Performance Share Plan is based on the performance of the PUMA share price. The term is up to five \\nyears, divided into a three-year performance period and a subsequent two-year exercise period, in which \\nthe virtual shares are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24 \\nmonths after the end of the performance period). The average share price of the last 30 trading days before \\nthe exercise date determines the payout value of a virtual share. The payout is limited to a maximum of \\n300% of the granted prorated target amount (cap) and is only made if an exercise hurdle of +10% share-price \\nappreciation is exceeded once during the performance period. \\nIn the reporting year, € 0.6 million was released for this programme (previous year: € 0.0 million) and a \\nproportionate amount of € 0.8 million (previous year: € 4.7 million) was set aside for this programme. This \\nresulted in a provision for this programme at the end of the financial year of € 6.0 million (previous year: \\n€ 5.8 million). The Performance Share Plan portion accounted for € 0.4 (previous year: € 0.6 million). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n350 \\n↗ T.70 VIRTUAL SHARES, NON-MANAGEMENT BOARD MEMBERS \\nProgram addendum \\nGame Changer\\n2023\\nGame Changer\\n2024\\nRoad 2.10b\\nGame Changer \\n2026\\n \\nIssue date \\n1/1/2020\\n1/1/2021\\n1/1/2022\\n1/1/2023\\n \\nTerm \\n5\\n5\\n5\\n5\\nYears\\nVesting period \\n3\\n3\\n3\\n3\\nYears\\nBase price at program start \\n67.69\\n86.23\\n106.95\\n51.86\\nEUR/share\\nReference value at the end of the financial year \\n55.46\\n55.46\\n5.73\\n55.46\\nEUR/share\\nWeighted share price at the time of exercise \\n51.43\\n0\\n0\\n0\\nEUR/share\\nParticipants in the year of issue \\n60\\n76\\n486\\n84\\nPersons\\nParticipants at the end of the financial year \\n19\\n65\\n467\\n84\\nPersons\\nNumber of virtual shares as of 1 January 2023 \\n24,547\\n23,340\\n103,352\\n55,167\\nShares\\nNumber of virtual shares expired in the financial year \\n-222\\n-2,370\\n-10,467\\n0\\nShares\\nNumber of virtual shares added in the financial year (new participants) \\n0\\n470\\n2,674\\n0\\nShares\\nNumber of virtual shares exercised in the financial year \\n-15,334\\n0\\n0\\n0\\nShares\\nFinal number of virtual shares as of 31 December 2023 \\n8,991\\n21,440\\n95,559\\n55,167\\nShares\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n351 \\nNOTES TO THE CONSOLIDATED INCOME \\nSTATEMENT \\n19. SALES \\nThe following table shows the Group's sales broken down by distribution channel and division: \\n↗ T.71 BREAKDOWN BY DISTRIBUTION CHANNEL (in € million) \\n \\n2023\\n2022\\nWholesale \\n6,468.6\\n6,513.7\\nDirect-to-consumer (DTC) \\n2,133.0\\n1,951.4\\nTotal \\n8,601.7\\n8,465.1\\n \\n \\n \\n \\n↗ T.72 BREAKDOWN BY PRODUCT DIVISION (in € million) \\n \\n2023\\n2022\\nFootwear \\n4,583.4\\n4,317.9\\nApparel \\n2,763.0\\n2,896.3\\nAccessories \\n1,255.3\\n1,251.0\\nTotal \\n8,601.7\\n8,465.1\\n \\n \\n \\n \\n20. OTHER OPERATING INCOME AND EXPENSES \\nAccording to the respective functions, other operating income and expenses include personnel, advertising, \\nsales and distribution expenses as well as rental and leasing expenditure, travel costs, legal and consulting \\nexpenses and other general expenses. Rental and lease expenses associated with the Group's own retail \\nstores include revenue-based rental components. \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n352 \\nOther operating income and expenses are allocated based on functional areas as follows: \\n↗ T.73 OTHER OPERATING INCOME AND EXPENSES (in € million) \\n \\n2023\\n2022\\nSales and distribution expenses \\n2,799.0\\n2,677.2\\nProduct management/merchandising \\n82.5\\n70.9\\nResearch and development \\n89.0\\n82.2\\nAdministrative and general expenses \\n450.9\\n465.8\\nOther operating expenses \\n3,421.3\\n3,296.0\\nOther operating income \\n-17.8\\n-0.1\\nTotal \\n3,403.5\\n3,295.9\\nThereof personnel expenses \\n894.4\\n836.3\\nThereof scheduled depreciation \\n351.7\\n332.8\\nThereof impairment losses \\n5.7\\n26.0\\nThereof reversal of impairment losses \\n-11.9\\n0.0\\n \\n \\n \\n \\nWithin the sales and distribution expenses, marketing/retail expenses account for a large proportion of the \\noperating expenses. In addition to advertising and promotional expenses, they also include expenses \\nassociated with the Group's own retail activities. Other sales and distribution expenses include logistics \\nexpenses and other variable sales and distribution expenses. \\nImpairment expenses in the reporting year amounted to € 5.7 million and related exclusively to right-of-use \\nassets (previous year: € 25.4 million). There were no impairment expenses for property, plant and \\nequipment (previous year: € 0.6 million). In contrast, there were reversals of impairment losses on \\nright-of-use assets amounting to € 11.9 million (previous year: € 0.0 million). \\nIn the consolidated financial statements of PUMA SE, fees of € 2.0 million (previous year: € 1.9 million) are \\nrecorded as operating expenses for the auditor of the consolidated financial statements, KPMG AG \\nWirtschaftsprüfungsgesellschaft, Nuremberg, Germany. The audit fee is divided into fees for audit services \\nfor the annual and consolidated financial statements as well as the audit review of the half-year financial \\nreport in the amount of € 1.8 million (previous year: € 1.8 million) and other assurance services amounting to \\n€ 0.2 million (previous year: € 0.1 million) mainly for the audit of information in the sustainability report and \\nother minor services in the amount of € 0.0 million (previous year: none). In addition to expenses for \\nPUMA SE, the fees also include the fees of the domestic and foreign subsidiaries audited directly by the \\nGroup auditor. \\nIn financial year 2023, government grants amounted to a mid single-digit (previous year: low double-digit) \\nmillion euro amount. Government grants are deducted from the corresponding expenses. \\nOther operating income comprises income from the sale of fixed assets in the amount of € 8.5 million \\n(previous year: € 0.1 million), selling profit from finance leases totalling € 8.0 million (previous year: \\n€ 0.0 million), and rental income totalling € 1.4 million (previous year: € 0.0 million). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n353 \\nOverall, other operating expenses include personnel costs, which consist of: \\n↗ T.74 PERSONNEL COSTS (in € million) \\n \\n2023\\n2022\\nWages and salaries \\n688.7\\n649.8\\nSocial security contributions \\n101.2\\n91.9\\nExpenses from share-based payments with cash compensation \\n5.2\\n5.1\\nExpenses for retirement pension and other personnel expenses \\n99.3\\n89.5\\nTotal \\n894.4\\n836.3\\n \\n \\n \\n \\nIn addition, cost of sales includes personnel costs in the amount of € 6.2 million (previous year: \\n€ 10.2 million). \\nThe average number of employees for the year was as follows: \\n↗ T.75 EMPLOYEES \\n \\n2023\\n2022\\nMarketing/retail/sales \\n13,092\\n12,229\\nResearch & development/product management \\n1,360\\n1,228\\nAdministrative and general units \\n3,570\\n3,213\\nTotal annual average \\n18,023\\n16,669\\n \\n \\n \\n \\nAs of the end of the year, a total of 18,681 individuals were employed (previous year: 18,071). \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n354 \\n21. FINANCIAL RESULT \\nThe financial result consists of: \\n↗ T.76 FINANCIAL RESULT (in € million) \\n \\n2023\\n2022\\nInterest income \\n36.6\\n32.3\\nInterest income - lease receivables \\n1.2\\n0.0\\nOther \\n74.9\\n47.1\\nFinancial income \\n112.7\\n79.4\\nInterest expense \\n-53.1\\n-15.2\\nInterest expense - lease liabilities \\n-46.8\\n-38.6\\nInterest expense of valuation of pension plans \\n-0.9\\n-0.6\\nExpenses from currency-conversion differences, net \\n-69.4\\n-2.2\\nOther \\n-85.9\\n-111.7\\nFinancial expenses \\n-256.0\\n-168.3\\nFinancial result \\n-143.3\\n-88.9\\n \\n \\n \\n \\nThe \\\"Other\\\" item in the financial income of € 74.9 million (previous year: € 47.1 million) includes interest \\ncomponents in connection with currency derivatives as well as hedging gains from freestanding derivatives. \\nThe item \\\"Other\\\" in financial expenses includes, among other things, interest components in connection \\nwith currency derivatives in the amount of € 58.1 million (previous year: € 69.9 million) and the loss on the \\nnet monetary position associated with hyperinflation in the amount of € 23.7 million (previous year: \\n€ 27.8 million). \\n \\n22. INCOME TAXES \\n↗ T.77 INCOME TAXES (in € million) \\n \\n2023\\n2022\\nCurrent income taxes \\n140.6\\n152.5\\nDeferred taxes \\n-22.8\\n-25.1\\nTotal \\n117.8\\n127.4\\n \\n \\n \\n \\nCurrent income taxes include € 0.8 million in out-of-period income. Deferred taxes include tax income of \\n€ 0.3 million (tax income in previous year: € 39.2 million), which is attributable to the occurrence or \\nresolution of temporary differences. \\nIn general, PUMA SE and its German subsidiaries are subject to corporate income tax, plus a solidarity \\nsurcharge and trade tax. Thus, a weighted mixed tax rate of 27.22% continued to apply for the financial year. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n355 \\nReconciliation of the theoretical tax expense with the effective tax expense: \\n↗ T.78 TAX RATE RECONCILIATION (in € million) \\n \\n2023\\n2022\\nEarnings before income tax \\n478.3\\n551.7\\nTheoretical tax expense \\n \\n \\nTax rate of the SE = 27.22% (previous year: 27.22%) \\n130.2\\n150.2\\nTax rate difference with respect to other countries \\n-21.0\\n-6.9\\nOther tax effects: \\n \\n \\nIncome tax for previous years \\n3.7\\n-9.7\\nLosses and temporary differences for which no tax claims were recognized \\n6.4\\n4.8\\nChanges in tax rates \\n-0.4\\n-0.6\\nNon-deductible expenses for tax purposes and non-taxable income and other effects \\n-1.1\\n-10.4\\nEffective tax expense \\n117.8\\n127.4\\nEffective tax rate \\n24.6%\\n23.1%\\n \\n \\n \\n \\nFor the financial year 2023, the total tax advantage from previously uncapitalised tax losses, tax credits or \\ntemporary differences from previous years which led to a reduction in deferred tax expenses, amounted to \\n€ 7.5 million (previous year: € 7.0 million). Deferred tax expenses due to an impairment of deferred tax \\nassets amounted to € 11.3 million in the financial year (previous year: € 5.0 million). \\nThe tax effect resulting from items that were directly included in other comprehensive income can be found \\nin chapter 8. \\nINFORMATION ON THE EFFECTS OF GLOBAL MINIMUM TAXATION (PILLAR II) \\nOn 23 May 2023, the IASB published amendments to IAS 12, which require companies subject to global \\nminimum taxation regulations to provide additional information on the impact of the global minimum \\ntaxation in their annual financial statements for financial years beginning on or after 1 January 2023. \\nThe PUMA Group falls within the scope of application of the global minimum taxation. The relevant \\nlegislation entered into force on 28 December 2023 in Germany, the country in which the parent company of \\nthe PUMA Group is based, and applies to financial years beginning after 31 December 2023. As the Minimum \\nTax Act (\\\"MinStG\\\") applies to the financial year of the PUMA Group beginning on 1 January 2024, but was not \\nyet applicable to the financial year beginning on 1 January 2023, the PUMA Group has no associated ongoing \\ntax risk in financial year 2023. Taking into account the fact that the PUMA Group will be affected by the \\nminimum tax legislation, a preliminary valuation of the potential risk was carried out. \\nThe valuation of the potential risk of Pillar II taxes is based on the most recent country-related reports and \\nfinancial statements available to the Group's business units. The Group has identified a potential risk of the \\nsuspension of Pillar II taxes on profits made in Hong Kong and the United Arab Emirates. The potential risk \\narises from the business units (mainly operating subsidiaries) in these countries, where the effective tax \\nrate is likely to be less than 15%. \\nIf the MinStG had been applied for this financial year ending on 31 December 2023, the amount of the tax \\nincrease determined according to the MinStG would have totalled approx. € 12 million. However, the actual \\namounts of tax increases in the countries concerned in 2024 will depend on various factors. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n356 \\nThe PUMA Group makes use of the exemption under IAS 12.88A for the recognition of deferred taxes that \\nresult from the introduction of global minimum taxation. \\n \\n23. EARNINGS PER SHARE \\nThe earnings per share are determined in accordance with IAS 33 by dividing the consolidated annual \\nsurplus (consolidated net earnings) attributable to the shareholders of the parent company by the weighted \\naverage number of outstanding shares. \\nThe calculation is shown in the table below: \\n↗ T.79 EARNINGS PER SHARE \\n \\n2023\\n2022\\nNet income attributable to the shareholders of PUMA SE (€ million) \\n304.9\\n353.5\\nWeighted average number of outstanding shares (shares) \\n149,852,251\\n149,649,158\\nEarnings per share (€) \\n2.03\\n2.36\\n \\n \\n \\nNet income for calculating the diluted earnings per share (€ million) \\n304.9\\n353.5\\nWeighted average number of outstanding shares (shares) \\n149,852,251\\n149,649,158\\nDilutive effect of conditionally issuable shares in connection with service agreements \\n0\\n12,107\\nDilutive effect from share-based payments \\n19,651\\n2,573\\nWeighted average number of outstanding shares, diluted (shares) \\n149,871,901\\n149,663,837\\nEarnings per share (€) - diluted \\n2.03\\n2.36\\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n357 \\nADDITIONAL INFORMATION \\n24. SEGMENT REPORTING \\nSegment reporting is based on geographical areas of responsibility in accordance with the PUMA internal \\nreporting structure, with the exception of stichd. The geographical area of responsibility corresponds to the \\nbusiness segment. Sales, the operating result (EBIT) and other segment information are allocated to the \\ncorresponding geographical areas of responsibility according to the registered office of the respective Group \\ncompany. \\nThe internal management reporting includes the following reporting segments: Europe, EEMEA (Eastern \\nEurope, Middle East, Africa, India and Southeast Asia), North America, Latin America, Greater China, rest of \\nAsia/Pacific (excluding Greater China and Southeast Asia) and stichd. These are reported as reportable \\nbusiness segments in accordance with the criteria of IFRS 8. \\nThe reconciliation includes information on assets, liabilities, expenses and income in connection with \\ncentralised functions that do not meet the definition of business segments in IFRS 8. Central expenses and \\nincome include in particular central sourcing, central treasury, central marketing, impairment losses on \\nnon-current assets and other global functions of the Company headquarters. \\nThe Company's main decision-maker is defined as the entire Management Board of PUMA SE. \\nThe external sales presented in the segment reporting includes sales from both the wholesale business and \\nown retail activities (direct-to-consumer business). The percentage breakdown of sales by wholesale \\nbusiness and direct-to-consumer business at the segment level mainly aligns with the breakdown at the \\nGroup level (see chapter 19). Exceptions to this are the Greater China segment, where wholesale sales \\nrepresent approximately 50%, and the stichd segment, which almost exclusively generates wholesale sales. \\nThe business relationships between the companies in the segments are essentially based on prices that are \\nalso agreed with third parties. With the exception of sales of goods by stichd amounting to € 37.1 million \\n(previous year: € 38.3 million), there are no significant internal sales, which is why they are not included in \\nthe presentation. \\nThe operating result (EBIT) of the business segments is defined as gross profit less the attributable other \\noperating expenses plus royalty and commission income and other operating income, but not considering \\nthe costs of the central departments and the central marketing expenses. \\nThe external sales, operating result (EBIT), inventories and trade receivables of the business segments are \\nregularly reported to the main decision-maker. Amounts recognised by the Group from the intra-group \\nprofit elimination on inventories in connection with intra-group sales are not allocated to the business \\nsegments in the way that they are reported to the main decision-maker. Investments, depreciation and non-\\ncurrent assets at the level of the business segments are not reported to the main decision-maker. \\nIntangible assets are allocated to the business segments in the manner described in chapter 11. Liabilities, \\nthe financial result and income taxes are not allocated to the business segments and are therefore not \\nreported to the main decision-maker at the business segment level. \\nNon-current assets and depreciation comprise the carrying amounts and depreciation of property, plant and \\nequipment, right-of-use assets and intangible assets during the past financial year. The investments \\ncomprise additions to property, plant and equipment and intangible assets. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n358 \\nSince PUMA is active in only one business area, the sporting goods industry, products are additionally \\nallocated according to the Footwear, Apparel and Accessories product segments in accordance with the \\ninternal reporting structure. \\n \\nSEGMENT REPORTING JAN-DEC 2023 \\n↗ T.80 BUSINESS SEGMENTS (in € million) \\n \\nExternal Sales \\nEBIT \\nInvestments \\n \\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\nEurope \\n2,016.0\\n1,922.5\\n251.4\\n242.0\\n25.8\\n33.6\\nEEMEA \\n1,626.2\\n1,333.3\\n392.1\\n308.5\\n28.1\\n30.2\\nNorth America \\n2,095.9\\n2,531.4\\n295.0\\n398.9\\n75.5\\n67.6\\nLatin America \\n1,239.9\\n1,098.3\\n285.3\\n285.2\\n75.8\\n34.6\\nGreater China \\n582.2\\n521.3\\n84.5\\n20.2\\n10.3\\n20.3\\nAsia/Pacific (excluding \\nGreater China) \\n551.7\\n588.5\\n61.2\\n73.4\\n6.5\\n7.2\\nstichd \\n459.4\\n469.8\\n89.5\\n113.2\\n22.1\\n21.2\\nTotal business segments \\n8,571.3\\n8,465.1\\n1,458.9\\n1,441.2\\n244.1\\n214.7\\n \\n \\n \\n \\n \\n \\n \\n \\n \\nDepreciation and amortization \\nInventories \\nTrade Receivables (third \\nparties) \\n \\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\nEurope \\n61.7\\n58.5\\n498.5\\n602.5\\n196.4\\n190.3\\nEEMEA \\n55.6\\n55.8\\n338.4\\n378.5\\n286.5\\n189.4\\nNorth America \\n83.3\\n71.2\\n466.1\\n739.3\\n204.9\\n259.2\\nLatin America \\n39.2\\n23.1\\n306.9\\n253.1\\n223.7\\n200.7\\nGreater China \\n29.3\\n39.7\\n109.6\\n179.1\\n40.6\\n44.5\\nAsia/Pacific (excluding \\nGreater China) \\n28.1\\n31.6\\n97.8\\n114.7\\n91.5\\n111.4\\nstichd \\n11.2\\n8.3\\n104.8\\n93.9\\n72.1\\n66.1\\nTotal business segments \\n308.3\\n288.2\\n1,922.0\\n2,361.1\\n1,115.7\\n1,061.6\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n359 \\n↗ T.81 CONTINUATION BUSINESS SEGMENTS (in € million) \\n \\nNon-current assets \\n \\n1-12/2023\\n1-12/2022\\nEurope \\n477.4\\n477.1\\nEEMEA \\n186.1\\n198.1\\nNorth America \\n741.8\\n750.4\\nLatin America \\n221.5\\n128.2\\nGreater China \\n91.8\\n86.2\\nAsia/Pacific (excluding Greater China) \\n121.7\\n149.4\\nstichd \\n226.0\\n209.6\\nTotal business segments \\n2,066.4\\n1,999.1\\n \\n \\n \\n \\n↗ T.82 PRODUCT External Sales (€ million) Gross Profit Margin (in %) \\n \\nExternal Sales \\nGross Profit Margin \\n \\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\nFootwear \\n4,583.4\\n4,317.9\\n45.4%\\n44.9%\\nApparel \\n2,763.0\\n2,896.3\\n47.8%\\n47.3%\\nAccessories \\n1,255.3\\n1,251.0\\n46.6%\\n47.4%\\nTotal \\n8,601.7\\n8,465.1\\n46.3%\\n46.1%\\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n360 \\nRECONCILIATIONS \\n↗ T.83 RECONCILIATIONS (in € million) \\n \\nExternal Sales \\n \\n1-12/2023\\n1-12/2022\\nTotal business segments \\n8,571.3\\n8,465.1\\nCentral Areas \\n30.4\\n0.0\\nTotal \\n8,601.7\\n8,465.1\\n \\n \\n \\n \\n \\nEBIT \\n \\n1-12/2023\\n1-12/2022\\nTotal business segments \\n1,458.9\\n1,441.2\\nCentral Areas \\n-344.6\\n-364.4\\nCentral expenses Marketing \\n-492.7\\n-436.2\\nConsolidation \\n0.0\\n0.0\\nEBIT \\n621.6\\n640.6\\nFinancial Result \\n-143.3\\n-88.9\\nEBT \\n478.3\\n551.7\\n \\n \\n \\n \\n \\nInvestments \\nDepreciation and amortization \\n \\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\nTotal business segments \\n244.1\\n214.7\\n308.3\\n288.2\\nCentral Areas \\n55.5\\n49.3\\n43.4\\n44.6\\nConsolidation \\n0.0\\n0.0\\n0.0\\n0.0\\nTotal \\n299.6\\n263.9\\n351.7\\n332.8\\n \\n \\n \\n \\n \\n \\n \\nInventories \\nTrade Receivables (third \\nparties) \\nNon-current assets \\n \\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\nTotal business segments \\n1,922.0\\n2,361.1\\n1,115.7\\n1,061.6\\n2,066.4\\n1,999.1\\nNot allocated to the business \\nsegments \\n-117.7\\n-116.0\\n2.8\\n3.3\\n237.7\\n211.0\\nTotal \\n1,804.4\\n2,245.1\\n1,118.4\\n1,064.9\\n2,304.1\\n2,210.1\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n361 \\nGEOGRAPHICAL INFORMATION \\nSales revenue (with third parties) is reported in the geographical market in which it arises. Non-current \\nassets are allocated to the geographical market based on the registered office of the relevant subsidiary, \\nregardless of the segment structure. \\n↗ T.84 GEOGRAPHICAL INFORMATION BY COUNTRY (in € million) \\n \\nExternal Sales \\nNon-current assets \\n \\n1-12/2023\\n1-12/2022\\n1-12/2023\\n1-12/2022\\nGermany, Europe \\n631.6\\n586.3\\n507.0\\n488.3\\nUSA, North America \\n1,933.7\\n2,334.2\\n604.5\\n604.7\\n \\n \\n \\n \\n \\n \\n25. NOTES TO THE CASH FLOW STATEMENT \\nThe cash flow statement was prepared in accordance with IAS 7 and is structured based on cash flows from \\noperating, investing and financing activities. The indirect method is used to determine the cash \\noutflow/inflow from operating activities. The gross cash flow, derived from earnings before income tax and \\nadjusted for non-cash income and expense items, is determined within the cash flow from operating \\nactivities. Cash outflow/inflow from operating activities less investments in property, plant and equipment \\nas well as intangible assets is referred to as free cash flow. \\nThe cash and cash equivalents reported in the cash flow statement include all cash and cash equivalents \\nshown in the statement of financial position under the item \\\"Cash and cash equivalents\\\", i.e. cash on hand, \\nchecks and current bank balances including short-term financial investments. \\nThe following table shows the cash and non-cash changes in financial liabilities in accordance with IAS 7.44 \\nA: \\n↗ T.85 RECONCILIATION OF FINANCIAL LIABILITIES TO THE CASH INFLOW/ OUTFLOW FROM \\nFINANCING ACTIVITIES 2023 (in € million) \\n \\n \\n \\nNon-cash changes \\n \\n \\n \\n \\nNotes\\nBalance\\n01/01/2023\\nCurrency\\nchanges\\nOther \\nCash changes\\nBalance\\n31/12/2023\\nFinancial liabilities \\n \\n \\n \\n \\n \\n \\nLease liabilities \\n10\\n1,230.4\\n-44.9\\n254.9 \\n-208.0\\n1,232.4\\nCurrent borrowings \\n13\\n75.9\\n-0.6\\n129.8 \\n-59.1\\n145.9\\nNon-current borrowings \\n13\\n251.5\\n0.0\\n-125.0 \\n299.6\\n426.1\\nTotal \\n \\n1,557.8\\n-45.6\\n259.7 \\n32.5\\n1,804.4\\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n362 \\n↗ T.86 RECONCILIATION OF FINANCIAL LIABILITIES TO THE CASH INFLOW/ OUTFLOW FROM \\nFINANCING ACTIVITIES 2022 (in € million) \\n \\n \\n \\nNon-cash changes \\n \\n \\n \\n \\nNotes\\nBalance\\n01/01/2022\\nCurrency\\nchanges\\nOther \\nCash changes\\nBalance\\n31/12/2022\\nFinancial liabilities \\n \\n \\n \\n \\n \\n \\nLease liabilities \\n10\\n1,023.4\\n12.1\\n385.0 \\n-190.0\\n1,230.4\\nCurrent borrowings \\n13\\n68.5\\n-1.1\\n0.0 \\n8.4\\n75.9\\nNon-current borrowings \\n13\\n311.5\\n0.0\\n0.0 \\n-60.0\\n251.5\\nTotal \\n \\n1,403.4\\n11.1\\n385.0 \\n-241.6\\n1,557.8\\n \\n \\n \\n \\n \\n \\n \\n \\nThe lease liabilities of € 1,232.4 million (previous year: € 1,230.4 million) break down into current lease \\nliabilities of € 212.4 million (previous year: € 200.2 million) and non-current lease liabilities of \\n€ 1,020.0 million (previous year: € 1,030.3 million). \\n \\n26. OTHER FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES \\nOTHER FINANCIAL OBLIGATIONS \\nThe Company has other financial obligations associated with license, promotional and advertising \\nagreements, which give rise to the following financial obligations as of the balance sheet date: \\n↗ T.87 COMMITMENTS FROM LICENSE, PROMOTIONAL AND ADVERTISING AGREEMENTS \\n(in € million) \\n \\n2023\\n2022\\nFrom license, promotional and advertising agreements: \\n \\n \\nDue within one year \\n402.4\\n348.6\\nDue between one and five years \\n1,203.5\\n781.1\\nDue after five years \\n314.2\\n130.8\\nTotal \\n1,920.2\\n1,260.5\\n \\n \\n \\n \\nAs is customary in the industry, the promotional and advertising agreements provide for additional \\npayments on reaching pre-defined goals (e.g. medals, championships). These are contractually agreed, but \\nby their nature cannot be predicted exactly in terms of their timing and amount. \\nIn addition, there are other financial obligations totalling € 246.5 million, of which, € 146.5 million relate to \\nthe years from 2025. These include service agreements of € 234.2 million as well as other obligations of \\n€ 12.3 million. \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n363 \\nCONTINGENT LIABILITIES \\nIndividual PUMA companies are involved in legal disputes arising from normal operating activities, e.g. \\nrelating to intellectual property rights and employee matters. If an outflow of resources from these legal \\ndisputes is classified as probable and the amount of the obligation can be reliably estimated, the risks \\narising from these legal disputes are included in the other provisions. However, if the probability of \\noccurrence is classified as low, these legal disputes are recognised as contingent liabilities, which are \\nestimated at € 0.8 million in this financial year (previous year: € 3.1 million). Contingent liabilities also exist \\ndue to uncertainties in the appraisal of the facts by the tax and customs authorities in India. Based on \\nexternal reports, the Management currently assumes that the receivables of Indian tax and customs \\nauthorities will not result in any cash outflow. Overall, the PUMA Management considers that the impact of \\nthe total of the contingent liabilities on the net assets, financial position and results of operations of the \\nCompany is immaterial. \\n \\n27. COMPENSATION OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD \\nDisclosures pursuant to Section 314(1) 6 HGB (German Commercial Code [Handelsgesetzbuch]) in \\nconjunction with Section 315e HGB. \\nCOMPENSATION OF THE MEMBERS OF THE MANAGEMENT BOARD \\nThe total compensation of the members of the Management Board in financial year 2023 was € 10.3 million \\n(previous year: € 11.9 million). \\nThe total remuneration of the Management Board includes the share-based remuneration granted for the \\nfinancial year with a fair value of € 4.2 million (previous year: € 1.7 million) and 81,279 performance shares \\nwere issued (previous year: 16,457). The total remuneration for the previous year also includes the issue of \\n30,968 virtual shares of the PUMA Monetary Unit Plan with a fair value of € 3.0 million. \\n \\nTOTAL COMPENSATION OF FORMER MEMBERS OF THE MANAGEMENT BOARD \\nThe total remuneration of former members of the Management Board and their surviving dependents \\namounted to € 2023 million in financial year 0.7 (previous year: € 0.7 million). \\nIn addition, there were defined benefit pension obligations to former members of the Management Board \\nand their widows/widowers amounting to € 2.4 million (previous year: € 2.5 million) as well as defined \\ncontribution plans from deferred compensation of former members of the Management Board and \\nManaging Directors amounting to € 47.2 million (previous year: € 17.3 million). Both items are recognised \\naccordingly within pension provisions to the extent they were not offset against plan assets of an equal \\namount. \\n \\nCOMPENSATION OF THE SUPERVISORY BOARD \\nThe compensation paid to the Supervisory Board comprised fixed compensation and additional \\ncompensation for committee activities, and amounted to a total of € 0.4 million (previous year: \\n€ 0.2 million). \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n364 \\n28. DISCLOSURES RELATED TO NON-CONTROLLING INTERESTS \\nThe summarised financial information about subsidiaries of the Group in which non-controlling interests \\nexist is presented below. This financial information relates to all companies with non-controlling interests in \\nwhich the identical non-controlling shareholder holds an interest. The figures represent the amounts before \\nintercompany eliminations. \\nEvaluation of the control of companies with non-controlling interests: \\nThe Group holds a 51% capital share in PUMA United North America LLC, PUMA United Canada ULC and \\nJaned Canada LLC (inactive company). With these companies, there are profit-sharing arrangements in \\nplace which differ from the capital share for the benefit of the respective identical non-controlling \\nshareholder. PUMA receives higher license fees in exchange. \\nIn addition, there is a shareholding in the capital and the result, amounting to 70%, in the company PUMA \\nUnited Aviation North America LLC. \\nThe contractual agreements with these companies respectively provide PUMA with a majority of the voting \\nrights at the shareholder meetings, and thus the right of disposal regarding these companies. PUMA is \\nexposed to fluctuating returns from the sales-based license fees and from variable earnings. The Group \\nalso controls the key activities of these companies. The companies are accordingly included in the \\nconsolidated financial statements as subsidiaries with full consolidation with recognition of non-controlling \\ninterests. \\nThe non-controlling interests existing on the balance sheet date relate to PUMA United North America LLC, \\nPUMA United Canada ULC, Janed Canada, LLC (inactive) and PUMA United Aviation North America LLC at \\n€ 28.9 million (previous year: € 67.1 million). \\nThe following tables show a summary of the financial information for subsidiaries with non-controlling \\ninterests: \\n↗ T.88 ASSETS AND LIABILITIES (in € million) \\n \\n2023\\n2022\\nCurrent assets \\n112.9\\n105.8\\nNon-current assets \\n8.6\\n10.3\\nCurrent liabilities \\n85.3\\n40.4\\nNon-current liabilities \\n0.0\\n0.0\\nNet assets \\n36.3\\n75.7\\nNet assets attributable to non-controlling interests \\n28.9\\n67.1\\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n365 \\n↗ T.89 INCOME STATEMENT (in € million) \\n \\n2023\\n2022\\nSales \\n411.8\\n452.2\\nNet income \\n56.8\\n72.0\\nProfit attributable to non-controlling interests \\n55.7\\n70.9\\nOther comprehensive income of non-controlling interests \\n4.3\\n4.1\\nTotal comprehensive income of non-controlling interests \\n54.2\\n75.0\\nDividends paid to non-controlling interests \\n92.4\\n73.3\\n \\n \\n \\n \\n↗ T.90 CASH (in € million) \\n \\n2023\\n2022\\nNet cash from operating activities \\n101.8\\n79.4\\nNet cash used in investing activities \\n-0.3\\n0.0\\nNet cash used in financing activities \\n-101.4\\n-80.1\\nChanges in cash and cash equivalents \\n0.0\\n-0.4\\n \\n \\n \\n \\n \\n29. RELATED PARTY RELATIONSHIPS \\nIn accordance with IAS 24, relationships to related companies and persons that control or are controlled by \\nthe PUMA Group must be reported. All natural persons and companies that can be controlled by PUMA, that \\ncan exercise relevant control over the PUMA Group or that are under the relevant control of another related \\nparty of the PUMA Group are considered to be related companies or persons within the meaning of IAS 24. \\nAs of 31 December 2023, there was one shareholding in PUMA SE that exceeded 20% of the voting rights. \\nThis is held by the Pinault family via several companies that the family controls (in order of proximity to the \\nPinault family: Financière Pinault S.C.A., Artémis S.A.S. and Kering S.A.). The share of Kering S.A. in \\nPUMA SE amounted to 1.47% of the share capital at 18 September 2023. Combined, the shareholdings of \\nArtémis S.A.S. and Kering S.A. amounted to 29.99% of the share capital of PUMA SE at 18 September 2023. \\nSince Artémis S.A.S. and Kering S.A. hold more than 20% of the voting rights in PUMA SE, they are \\npresumed to have significant influence according to IAS 28.5 and IAS 28.6. They and all other companies \\ndirectly or indirectly controlled by Financière Pinault S.C.A. that are not included in the consolidated \\nfinancial statements of PUMA SE are considered as related parties in the following. \\nIn addition, the disclosure obligation pursuant to IAS 24 extends to transactions with associated companies \\nas well as transactions with other related companies and persons. \\nTransactions with related companies and persons largely concern sales of goods and licensing agreements. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n366 \\nThe following overview illustrates the scope of the business relationships: \\n↗ T.91 DELIVERIES AND SERVICES RENDERED AND RECEIVED (in € million) \\n \\nDeliveries and services rendered \\nDeliveries and services received \\n \\n2023\\n2022\\n2023\\n2022\\nCompanies included in the Artémis Group \\n2.1\\n1.7\\n0.0\\n0.1\\nOther related companies and persons \\n0.0\\n0.0\\n0.0\\n0.0\\nTotal \\n2.1\\n1.7\\n0.0\\n0.1\\n \\n \\n \\n \\n \\n \\n↗ T.92 NET RECEIVABLES AND LIABILITIES (in € million) \\n \\nNet receivables from \\nLiabilities to \\n \\n2023\\n2022\\n2023\\n2022\\nCompanies included in the Artémis Group \\n0.3\\n0.3\\n0.0\\n0.0\\nOther related companies and persons \\n0.0\\n0.0\\n0.0\\n0.0\\nTotal \\n0.3\\n0.3\\n0.0\\n0.0\\n \\n \\n \\n \\n \\n \\nReceivables from related companies and persons are not subject to value adjustments. \\nClassification of the remuneration of key management personnel in accordance with IAS 24.17: \\nThe members of key management personnel in accordance with IAS 24 are the Management Board and the \\nSupervisory Board. These are counted as related parties. \\nIn financial year 2023, the remuneration of the members of the Management Board of PUMA SE for short-\\nterm benefits amounted to € 6.1 million (previous year: € 7.2 million), for termination benefits to \\n€ 0.0 million (previous year: € 0.0 million) and the share-based payment € 1.4 million (previous year: \\n€ -0.5 million). Furthermore, just like in the previous year, no remuneration was granted in the form of \\nother long-term benefits or in the form of post-employment benefits in the reporting year. Accordingly, the \\ntotal expenditure for the reporting year amounted to € 7.5 million (previous year: € 6.7 million). \\nIn financial year 2023, the remuneration of the members of the Supervisory Board of PUMA SE for short-\\nterm benefits amounted to € 0.4 million (previous year: € 0.2 million). \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n367 \\n30. CORPORATE GOVERNANCE \\nIn November 2023, the Management Board and the Supervisory Board submitted the required compliance \\ndeclaration with respect to the recommendations issued by the Government Commission German Corporate \\nGovernance Code pursuant to Section 161 of the German Stock Corporation Act (Aktiengesetz – AktG) and \\npublished it on the Company's website (https://about.PUMA.com). Please also refer to the corporate \\ngovernance statement in accordance with section 289f and section 315d HGB (Handelsgesetzbuch, German \\nCommercial Code) in the Combined Management Report. \\n \\n31. EVENTS AFTER THE BALANCE SHEET DATE \\nNo events with any significant effect on the net assets, financial position and results of operations of the \\nPUMA Group occurred after the balance sheet date. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n368 \\n32. DATE OF RELEASE \\nThe Management Board of PUMA SE released the consolidated financial statements on 7 February 2024 for \\ndistribution to the Supervisory Board. The task of the Supervisory Board is to review the consolidated \\nfinancial statements and state whether it approves them. \\nHerzogenaurach, 7 February 2024 \\n \\nThe Management Board \\n \\n \\n \\nFreundt \\n \\nHinterseher \\n \\nDescours \\n \\n \\nValdes \\n \\nThis is a translation of the German version. In case of doubt, the German version shall apply. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n369 \\nAPPENDIX 1 OF THE CONSOLIDATED FINANCIAL STATEMENT \\nMEMBERS OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD AND THEIR MANDATES \\nSTATUS: 31 DECEMBER 2023 \\n \\nMEMBERS OF THE MANAGEMENT BOARD AND THEIR MANDATES \\nArne Freundt \\nChief Executive Officer (CEO) \\nHubert Hinterseher \\nChief Financial Officer (CFO) \\nAnne-Laure Descours \\nChief Sourcing Officer (CSO) \\nMaria Valdes (since 1 January 2023) \\nChief Product Officer (CPO) \\n \\nMEMBERS OF THE SUPERVISORY BOARD AND THEIR MANDATES \\nHéloïse Temple-Boyer (first elected on 18 April 2019) \\n(Chair) \\nParis, France \\nDeputy CEO of ARTÉMIS S.A.S., Paris/France \\nMembership in other statutory supervisory boards in Germany: None \\nMembership in comparable domestic and foreign controlling bodies of commercial enterprises\\n2 \\n• Kering S.A., Paris/France \\n• Christie's International Plc., London/ United Kingdom \\n• CAA LL.C., Los Angeles/USA \\n• Giambattista Valli S.A.S., Paris/France \\n• Société d'exploitation de l’hebdomadaire le Point S.A., Paris/France \\n• Pinault Collection, Paris/France \\n \\n \\n \\n2 \\nAll mandates are mandates within the ARTÈMIS/KERING-Group. Only Kering S.A. is a listed company. \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n370 \\nThore Ohlsson (first elected on 21 May 1993) \\n(Deputy Chair) \\nFalsterbo, Sweden \\nPresident of Elimexo AB, Falsterbo/Sweden \\nMembership in other statutory supervisory boards in Germany: None \\nMembership in comparable domestic and foreign controlling bodies of commercial enterprises: \\n• Tomas Frick AB, Vellinge/Sweden \\n• Orrefors Kosta Boda AB, Kosta/Sweden \\n• Infinitive AB, Malmö/Sweden \\n• Friskvårdcenter AB, Malmö/Sweden \\n• Totestories AB, Vellinge/Sweden \\nJean-Marc Duplaix (first elected on 24 May 2023) \\nParis, France \\nDeputy CEO of Kering S.A., Paris/France \\nMembership in other statutory supervisory boards in Germany: None \\nMembership in comparable domestic and foreign controlling bodies of commercial enterprises\\n3: \\n• Balenciaga S.A., Paris/Frankreich \\nJean-François Palus (first elected on 16 June 2007, until 24 May 2023) \\nParis, France \\nManaging Director of Guccio Gucci S.p.A., Florence/Italy \\nMembership in other statutory supervisory boards in Germany: None \\nMembership in comparable domestic and foreign controlling bodies of commercial enterprises: \\n• Financière Pinault S.C.A., Paris/France \\n• Sonova Management S.A.S., Paris/France \\n• Bureau Veritas S.A., Paris/France \\nFiona May (first elected on 18 April 2019) \\nCalenzano, Italy \\nIndependent Management Consultant \\nMembership in other statutory supervisory boards in Germany: None \\nMembership in comparable domestic and foreign controlling bodies of commercial enterprises: None \\n \\n \\n \\n3 \\nThe mandate is a mandate within the Kering Group. Kering S.A. is a listed company. Balenciaga S.A. is not listed \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n371 \\nMartin Köppel (first elected on 25 July 2011) \\n(Employees‘ Representative) \\nAdelsdorf, Germany \\nChair of the Works Council of PUMA SE \\nMembership in other statutory supervisory boards in Germany: None \\nMembership in comparable domestic and foreign controlling bodies of commercial enterprises: None \\nBernd Illig (first elected on 9 July 2018) \\n(Employees‘ Representative) \\nBechhofen, Germany \\nTeamhead IT Endpoint Management of PUMA SE \\nMembership in other statutory supervisory boards in Germany: None \\nMembership in comparable domestic and foreign controlling bodies of commercial enterprises: None \\n \\nSUPERVISORY BOARD COMMITTEES \\nPersonnel Committee \\n• Héloïse Temple-Boyer (Chair) \\n• Fiona May \\n• Martin Köppel \\nAudit Committee \\n• Jean-Marc Duplaix (Chair since 24 May 2023) \\n• Thore Ohlsson (Chair until 24 May 2023) \\n• Héloïse Temple-Boyer (until 24 May 2023) \\n• Bernd Illig \\nNominating Committee \\n• Héloïse Temple-Boyer (Chair) \\n• Jean-François Palus (until 24 May 2023) \\n• Fiona May \\n• Jean-Marc Duplaix (since 24 May 2023) \\nSustainability Committee \\n• Fiona May (Chair) \\n• Héloïse Temple-Boyer \\n• Martin Köppel \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n372 \\nDECLARATION BY THE LEGAL REPRESENTATIVES \\nWe state to the best of our knowledge that the consolidated financial statements give a true and fair view of \\nthe net assets, financial position and results of operations of the Group in accordance with the applicable \\naccounting principles, and that the Group management report, which is combined with the Management \\nreport of PUMA SE for the financial year 2023, provides a true and fair view of the course of the development \\nand performance of the business and the position of the Group, together with a description of the principal \\nrisks and opportunities associated with the expected performance of the Group. \\nHerzogenaurach, 7 February 2024 \\n \\nThe Management Board \\n \\n \\n \\nFreundt \\n \\nHinterseher \\n \\nDescours \\n \\nValdes \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n373 \\nINDEPENDENT AUDITOR’S REPORT \\nFor the Consolidated Financial Statements and Group Management Report we have issued an unqualified \\nauditor’s report. The English language text below is a translation of the auditor’s report. The original \\nGerman text shall prevail in the event of any discrepancies between the English translation and the \\nGerman original. We do not accept any liability for the use of, or reliance on, the English translation or for \\nany errors or misunderstandings that may derive from the translation. \\n \\nTo PUMA SE, Herzogenaurach \\nREPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE \\nCOMBINED MANAGEMENT REPORT \\nOPINIONS \\nWe have audited the consolidated financial statements of PUMA SE, Herzogenaurach, and its subsidiaries \\n(the Group), which comprise the consolidated statement of financial position as of December 31, 2023, the \\nconsolidated income statement, the consolidated statement of comprehensive income, the consolidated \\nstatement of changes in equity and the consolidated statement of cash flows for the financial year from \\nJanuary 1 to December 31, 2023, and notes to the consolidated financial statements, including a summary of \\nsignificant accounting policies. In addition, we have audited the management report of the Company and the \\nGroup (combined management report) of PUMA SE for the financial year from January 1 to \\nDecember 31, 2023. \\nIn accordance with German legal requirements, we have not audited the content of those components of the \\ncombined management report specified in the \\\"Other Information\\\" section of our auditor's report. \\nThe combined management report contains cross-references that are not provided for by law and which are \\nmarked as unaudited. In accordance with German legal requirements, we have not audited the cross-\\nreferences and the information to which the cross-references refer. \\nIn our opinion, on the basis of the knowledge obtained in the audit, \\n• the accompanying consolidated financial statements comply, in all material respects, with the IFRSs as \\nadopted by the EU, and the additional requirements of German commercial law pursuant to Section \\n315e (1) HGB [Handelsgesetzbuch: German Commercial Code] and, in compliance with these \\nrequirements, give a true and fair view of the assets, liabilities, and financial position of the Group as of \\nDecember 31, 2023, and of its financial performance for the financial year from January 1 to \\nDecember 31, 2023, and \\n• the accompanying combined management report as a whole provides an appropriate view of the Group's \\nposition. In all material respects, this combined management report is consistent with the consolidated \\nfinancial statements, complies with German legal requirements and appropriately presents the \\nopportunities and risks of future development. Our opinion on the combined management report does \\nnot cover the content of those components of the combined management report specified in the \\\"Other \\nInformation\\\" section of the auditor's report. The combined management report contains cross-\\nreferences that are not provided for by law and which are marked as unaudited. Our audit opinion does \\nnot extend to the cross-references and the information to which the cross-references refer. \\nPursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations \\nrelating to the legal compliance of the consolidated financial statements and of the combined management \\nreport. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n374 \\nBASIS FOR THE OPINIONS \\nWe conducted our audit of the consolidated financial statements and of the combined management report in \\naccordance with Section 317 HGB and the EU Audit Regulation No 537/2014 (referred to subsequently as \\n\\\"EU Audit Regulation\\\") and in compliance with German Generally Accepted Standards for Financial \\nStatement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] \\n(IDW). Our responsibilities under those requirements and principles are further described in the \\\"Auditor's \\nResponsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management \\nReport\\\" section of our auditor's report. We are independent of the group entities in accordance with the \\nrequirements of European law and German commercial and professional law, and we have fulfilled our \\nother German professional responsibilities in accordance with these requirements. In addition, in \\naccordance with Article 10 (2)(f) of the EU Audit Regulation, we declare that we have not provided non-audit \\nservices prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the evidence we have \\nobtained is sufficient and appropriate to provide a basis for our opinions on the consolidated financial \\nstatements and on the combined management report. \\n \\nKEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS \\nKey audit matters are those matters that, in our professional judgment, were of most significance in our \\naudit of the consolidated financial statements for the financial year from January 1 to December 31, 2023. \\nThese matters were addressed in the context of our audit of the consolidated financial statements as a \\nwhole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. \\nRevenue recognition cut-off for wholesale customers \\nFor information on the accounting policies applied, please refer to Sections 2 and 19 in the notes to the \\nconsolidated financial statements. \\nTHE FINANCIAL STATEMENT RISK \\nThe consolidated financial statements of PUMA SE for financial year 2023 report revenue of \\nEUR 8,601.7 million. Revenue includes revenue of EUR 6,468.6 million from the sale of goods to wholesale \\ncustomers. \\nThe Group recognizes revenue from the sale of goods to wholesale customers when it fulfils a performance \\nobligation through the transfer of a promised asset to a customer. An asset is transferred when (or as) the \\ncustomer obtains control of that asset. In accordance with the transfer of control, revenue from wholesale \\ncustomers is recognized at a point in time in the amount to which the Group is entitled. \\nThe Management Board of PUMA SE has defined the criteria for the recognition of revenue at a point in time \\nin a group-wide accounting policy and implemented processes for correct recognition and cut-off. \\nIn the final weeks prior to the reporting date, a range of transactions with wholesale customers take place \\nwith individual contractual agreements on the transfer of risk. In addition, there are internally defined and \\nexternally communicated revenue targets for the financial year, which represent a key benchmark for \\nmeasuring corporate success. \\nThere is the risk for the consolidated financial statements that revenue in the reporting year is overstated \\ndue to it being recognized in the wrong period, meaning that it is not recorded on an accrual basis. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n375 \\nOUR AUDIT APPROACH \\nIn order to audit revenue recognition cut-off for wholesale customers, we assessed the design, setup and \\neffectiveness of the internal controls relating to outgoing goods and the acceptance of goods and invoicing, \\nin particular the determination and verification of the correct transfer of control. In addition, we reviewed \\nthe presentation of revenue recognition in the group-wide accounting policy to ensure compliance with \\nIFRS 15. \\nFurthermore, we assessed revenue recognition cut-off for wholesale customers by reconciling invoices with \\nthe related orders, underlying contracts and external delivery records. This was based on revenue \\nrecognized at the end of December 2023 and selected using a mathematical/statistical procedure. \\nOUR OBSERVATIONS \\nPUMA SE's approach to revenue recognition cut-off with wholesale customers is appropriate. \\nImpairment testing of right-of-use assets for retail stores \\nFor information on the accounting policies applied, please refer to Sections 2 and 10 in the notes to the \\nconsolidated financial statements. \\nTHE FINANCIAL STATEMENT RISK \\nAs of December 31, 2023, right-of-use assets of EUR 1,087.7 million are recognized in the consolidated \\nfinancial statements of PUMA SE. A significant portion of the right-of-use assets is attributable to retail \\nstores (EUR 464.2 million). Right-of-use assets amount to 16.4% of total assets and thus have a material \\ninfluence on the Company's net assets. \\nOwing to the large number of leases and the resulting transactions, the Company has set up group-wide \\nprocesses and controls for the measurement of leases. \\nRight-of-use assets for retail stores are tested for impairment at the level of the individual retail stores as \\ncash-generating units. The impairment test compares the carrying amount of the cash-generating unit with \\nits recoverable amount. The Company determines the recoverable amount for the retail stores indicating \\npotential impairment by using the discounted cash flow method. If the carrying amount exceeds the \\nrecoverable amount, an impairment loss is recognized for the right-of-use asset of the cash-generating \\nunit. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. \\nImpairment testing of right-of-use assets for retail stores is complex and based on a range of assumptions \\nthat require judgment. Among others, these include the business and earnings performance of the retail \\nstore for the next year, the assumed growth rates, the applied discount rate and the use of extension \\noptions. The Company recognized impairment losses in the amount of EUR 5.7 million for right-of-use \\nassets for retail stores during the financial year. \\nIn particular owing to the judgments for measuring right-of-use assets for retail stores, there is the risk for \\nthe consolidated financial statements that an impairment of right-of-use assets may not be identified. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n376 \\nOUR AUDIT APPROACH \\nUsing the information obtained during our audit, we assessed whether there were any indicators of \\nimpairment for right-of-use assets for retail stores. In doing so, we thoroughly examined the Company's \\napproach to determining the need to recognize impairment losses and, based on the information obtained in \\nthe course of our audit, assessed whether there were any indications of impairment that had not been \\nidentified by the Company. \\nWith the involvement of our valuation specialists, for a sample of retail stores selected based on risk, we \\nthen assessed (among other things) the appropriateness of the Company's calculation method. For this \\npurpose we discussed the expected business and earnings development for the retail stores selected in this \\nsample and the assumed growth rates with those responsible for planning. Where accounting judgments \\nwere made for determining the lease term, we examined these judgments to determine whether the \\nunderlying assumptions were comprehensible in light of the prevailing market conditions and risks in the \\nindustry. \\nWe also assessed the accuracy of the Company's previous forecasts for the affected right-of-use assets by \\ncomparing the budgets from the previous financial year for the selected retail stores in the sample with the \\nactual results, and we analyzed any deviations. Further, we compared the assumptions and data underlying \\nthe discount rates with our own assumptions and publicly available data. We also assessed whether the \\ncalculation method for the discount rate was appropriate. \\nWe verified the computational accuracy of the carrying amount of the right-of-use assets determined by \\nPUMA SE for the retail stores included in the sample. \\nIn order to take forecast uncertainty into account, we examined the impact of potential changes in the \\ndiscount rate, earnings performance and long-term growth rates on the value in use by calculating \\nalternative scenarios for the selected sample and comparing these with the values stated by the Company \\n(sensitivity analysis). \\nOUR OBSERVATIONS \\nThe calculation method used for impairment testing of right-of-use assets for retail stores is appropriate \\nand in line with the accounting policies to be applied. \\nThe Company's assumptions and data used for the measurement of the right-of-use assets for retail stores \\nare appropriate. \\n \\nOTHER INFORMATION \\nThe Management Board and/or the Supervisory Board is responsible for the other information. The other \\ninformation comprises the following components of the combined management report, whose content was \\nnot audited: \\n• the Company's and Group's separate combined non-financial report, which is referred to in the \\ncombined management report, and \\n• the combined corporate governance statement for the Company and Group, which is included in a \\nseparate section of the combined management report, and \\n• information extraneous to combined management reports and marked as unaudited. \\nThe other information also includes the annual report, which is expected to be made available to us after \\nthe date of this independent auditor's report. The other information does not include the consolidated \\nfinancial statements, the combined management report information audited for content and our auditor's \\nreport thereon. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n377 \\nOur opinions on the consolidated financial statements and on the combined management report do not \\ncover the other information, and consequently we do not express an opinion or any other form of assurance \\nconclusion thereon. \\nIn connection with our audit, our responsibility is to read the other information and, in so doing, to consider \\nwhether the other information \\n• is materially inconsistent with the consolidated financial statements, with the combined management \\nreport information audited for content or our knowledge obtained in the audit, or \\n• otherwise appears to be materially misstated. \\n \\nRESPONSIBILITIES OF THE MANAGEMENT BOARD AND THE SUPERVISORY BOARD FOR THE \\nCONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT \\nThe Management Board is responsible for the preparation of consolidated financial statements that comply, \\nin all material respects, with IFRSs as adopted by the EU and the additional requirements of German \\ncommercial law pursuant to Section 315e (1) HGB and that the consolidated financial statements, in \\ncompliance with these requirements, give a true and fair view of the assets, liabilities, financial position, \\nand financial performance of the Group. In addition, the Management Board is responsible for such internal \\ncontrol as it has determined necessary to enable the preparation of consolidated financial statements that \\nare free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and \\nmisappropriation of assets) or error. \\nIn preparing the consolidated financial statements, the Management Board is responsible for assessing the \\nGroup's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, \\nmatters related to going concern. In addition, they are responsible for financial reporting based on the going \\nconcern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or \\nthere is no realistic alternative but to do so. \\nFurthermore, the Management Board is responsible for the preparation of the combined management \\nreport that, as a whole, provides an appropriate view of the Group’s position and is, in all material respects, \\nconsistent with the consolidated financial statements, complies with German legal requirements, and \\nappropriately presents the opportunities and risks of future development. In addition, the Management \\nBoard is responsible for such arrangements and measures (systems) as they have considered necessary to \\nenable the preparation of a combined management report that is in accordance with the applicable German \\nlegal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the \\ncombined management report. \\nThe Supervisory Board is responsible for overseeing the Group's financial reporting process for the \\npreparation of the consolidated financial statements and of the combined management report. \\n \\nAUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF \\nTHE COMBINED MANAGEMENT REPORT \\nOur objectives are to obtain reasonable assurance about whether the consolidated financial statements as a \\nwhole are free from material misstatement, whether due to fraud or error, and whether the combined \\nmanagement report as a whole provides an appropriate view of the Group’s position and, in all material \\nrespects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, \\ncomplies with the German legal requirements and appropriately presents the opportunities and risks of \\nfuture development, as well as to issue an auditor’s report that includes our opinions on the consolidated \\nfinancial statements and on the combined management report. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n378 \\nReasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in \\naccordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally \\nAccepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) \\nwill always detect a material misstatement. Misstatements can arise from fraud or error and are considered \\nmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economic \\ndecisions of users taken on the basis of these consolidated financial statements and this combined \\nmanagement report. \\nWe exercise professional judgment and maintain professional skepticism throughout the audit. We also: \\n• Identify and assess the risks of material misstatement of the consolidated financial statements and of \\nthe combined management report, whether due to fraud or error, design and perform audit procedures \\nresponsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis \\nfor our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than \\nthe risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, \\nforgery, intentional omissions, misrepresentations, or the override of internal controls. \\n• Obtain an understanding of internal control relevant to the audit of the consolidated financial statements \\nand of arrangements and measures (systems) relevant to the audit of the combined management report \\nin order to design audit procedures that are appropriate in the circumstances, but not for the purpose of \\nexpressing an opinion on the effectiveness of these systems. \\n• Evaluate the appropriateness of accounting policies used by the Management Board and the \\nreasonableness of estimates made by the Management Board and related disclosures. \\n• Conclude on the appropriateness of the Management Board's use of the going concern basis of \\naccounting and, based on the audit evidence obtained, whether a material uncertainty exists related to \\nevents or conditions that may cast significant doubt on the Group's ability to continue as a going concern. \\nIf we conclude that a material uncertainty exists, we are required to draw attention in the auditor's \\nreport to the related disclosures in the consolidated financial statements and in the combined \\nmanagement report or, if such disclosures are inadequate, to modify our respective opinions. Our \\nconclusions are based on the audit evidence obtained up to the date of our auditor's report. However, \\nfuture events or conditions may cause the Group to cease to be able to continue as a going concern. \\n• Evaluate the overall presentation, structure and content of the consolidated financial statements, \\nincluding the disclosures, and whether the consolidated financial statements present the underlying \\ntransactions and events in a manner that the consolidated financial statements give a true and fair view \\nof the assets, liabilities, financial position and financial performance of the Group in compliance with \\nIFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to \\nSection 315e (1) HGB. \\n• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or \\nbusiness activities within the Group to express opinions on the consolidated financial statements and on \\nthe combined management report. We are responsible for the direction, supervision and performance of \\nthe group audit. We remain solely responsible for our opinions. \\n• Evaluate the consistency of the combined management report with the consolidated financial \\nstatements, its conformity with [German] law, and the view of the Group's position it provides. \\n• Perform audit procedures on the prospective information presented by the Management Board in the \\ncombined management report. On the basis of sufficient appropriate audit evidence we evaluate, in \\nparticular, the significant assumptions used by the Management Board as a basis for the prospective \\ninformation, and evaluate the proper derivation of the prospective information from these assumptions. \\nWe do not express a separate opinion on the prospective information and on the assumptions used as a \\nbasis. There is a substantial unavoidable risk that future events will differ materially from the \\nprospective information. \\nWe communicate with those charged with governance regarding, among other matters, the planned scope \\nand timing of the audit and significant audit findings, including any significant deficiencies in internal \\ncontrol that we identify during our audit. \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n379 \\nWe also provide those charged with governance with a statement that we have complied with the relevant \\nindependence requirements, and communicate with them all relationships and other matters that may \\nreasonably be thought to bear on our independence, and where applicable, the actions taken or safeguards \\napplied to eliminate independence threats. \\nFrom the matters communicated with those charged with governance, we determine those matters that \\nwere of most significance in the audit of the consolidated financial statements of the current period and are \\ntherefore the key audit matters. We describe these matters in our auditor's report unless law or regulation \\nprecludes public disclosure about the matter. \\n \\nOTHER LEGAL AND REGULATORY REQUIREMENTS \\nREPORT ON THE ASSURANCE ON THE ELECTRONIC RENDERING OF THE CONSOLIDATED FINANCIAL \\nSTATEMENTS AND THE COMBINED MANAGEMENT REPORT PREPARED FOR PUBLICATION PURPOSES IN \\nACCORDANCE WITH SECTION 317 (3A) HGB \\nWe have performed assurance work in accordance with Section 317 (3a) HGB to obtain reasonable \\nassurance about whether the rendering of the consolidated financial statements and the combined \\nmanagement report (hereinafter the \\\"ESEF documents\\\") contained in the electronic file „PUMA KA 2023.zip“ \\n(SHA256-Hashwert: 3d9c82efdcc3657b21661fc4c90debfbfafac65be5b3f152055611b47a544d9b) made available \\nand prepared for publication purposes complies in all material respects with the requirements of \\nSection 328 (1) HGB for the electronic reporting format (\\\"ESEF format\\\"). In accordance with German legal \\nrequirements, this assurance work extends only to the conversion of the information contained in the \\nconsolidated financial statements and the combined management report into the ESEF format and \\ntherefore relates neither to the information contained in these renderings nor to any other information \\ncontained in the file identified above. \\nIn our opinion, the rendering of the consolidated financial statements and the combined management \\nreport contained in the electronic file made available, identified above and prepared for publication \\npurposes complies in all material respects with the requirements of Section 328 (1) HGB for the electronic \\nreporting format. Beyond this assurance opinion and our audit opinion on the accompanying consolidated \\nfinancial statements and the accompanying combined management report for the financial year from \\nJanuary 1 to December 31, 2023, contained in the \\\"Report on the Audit of the Consolidated Financial \\nStatements and the Combined Management Report\\\" above, we do not express any assurance opinion on the \\ninformation contained within these renderings or on the other information contained in the file identified \\nabove. \\nWe conducted our assurance work on the rendering of the consolidated financial statements and the \\ncombined management report contained in the file made available and identified above in accordance with \\nSection 317 (3a) HGB and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of \\nFinancial Statements and Management Reports Prepared for Publication Purposes in Accordance with \\nSection 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibility in accordance therewith is further described \\nbelow. Our audit firm applies the IDW Standard on Quality Management 1: Requirements for Quality \\nManagement in Audit Firms (IDW QMS 1) (09.2022). \\nOwing to the conversion process selected by the Company concerning the information in the notes in iXBRL \\nformat (block tagging), the consolidated financial statements converted into the ESEF format are not \\nmachine-readable in a fully meaningful respect. There is significant legal uncertainty regarding the legal \\nconformity of the Management Board's interpretation that meaningful machine-readability of the structured \\ninformation in the notes is not explicitly required by Commission Delegated Regulation (EU) 2019/815 for the \\nblock tagging of the notes, which thus also constitutes an inherent uncertainty of our audit. \\nThe Company's Management Board is responsible for the preparation of the ESEF documents including the \\nelectronic rendering of the consolidated financial statements and the combined management report in \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n380 \\naccordance with Section 328 (1) sentence 4 item 1 HGB and for the tagging of the consolidated financial \\nstatements in accordance with Section 328 (1) sentence 4 item 2 HGB. \\nIn addition, the Company's Management Board is responsible for such internal control that they have \\nconsidered necessary to enable the preparation of ESEF documents that are free from material intentional \\nor unintentional non-compliance with the requirements of Section 328 (1) HGB for the electronic reporting \\nformat. \\nThe Supervisory Board is responsible for overseeing the process of preparing the ESEF documents as part \\nof the financial reporting process. \\nOur objective is to obtain reasonable assurance about whether the ESEF documents are free from material \\nintentional or unintentional non-compliance with the requirements of Section 328 (1) HGB. We exercise \\nprofessional judgment and maintain professional skepticism throughout the assurance work. We also: \\n• Identify and assess the risks of material intentional or unintentional non-compliance with the \\nrequirements of Section 328 (1) HGB, design and perform assurance procedures responsive to those \\nrisks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our \\nassurance opinion. \\n• Obtain an understanding of internal control relevant to the assurance on the ESEF documents in order to \\ndesign assurance procedures that are appropriate in the circumstances, but not for the purpose of \\nexpressing an assurance opinion on the effectiveness of these controls. \\n• Evaluate the technical validity of the ESEF documents, i.e. whether the file made available containing the \\nESEF documents meets the requirements of Commission Delegated Regulation (EU) 2019/815, as \\namended as of the reporting date, on the technical specification for this electronic file. \\n• Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the \\naudited consolidated financial statements and the audited combined management report. \\n• Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance \\nwith the requirements of Articles 4 and 6 of the Commission Delegated Regulation (EU) 2019/815, as \\namended as of the reporting date, enables an appropriate and complete machine-readable XBRL copy of \\nthe XHTML rendering. \\n \\nFURTHER INFORMATION PURSUANT TO ARTICLE 10 OF THE EU AUDIT REGULATION \\nWe were elected as group auditor at the Annual General Meeting on May 24, 2023. We were engaged by the \\nSupervisory Board on November 21, 2023. We have been the group auditor of PUMA SE without interruption \\nsince financial year 2022. \\nWe declare that the opinions expressed in this auditor's report are consistent with the additional report to \\nthe Audit Committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report). \\n \\nOTHER MATTER – USE OF THE AUDITOR'S REPORT \\nOur auditor's report must always be read together with the audited consolidated financial statements and \\nthe audited combined management report as well as the examined ESEF documents. The consolidated \\nfinancial statements and combined management report converted to the ESEF format – including the \\nversions to be entered in the German Company Register [Unternehmensregister] – are merely electronic \\nrenderings of the audited consolidated financial statements and the audited combined management report \\nand do not take their place. In particular, the ESEF report and our assurance opinion contained therein are \\nto be used solely together with the examined ESEF documents made available in electronic form. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Consolidated Financial Statements \\n381 \\nGERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT \\nThe German Public Auditor responsible for the engagement is Matthias Koeplin. \\n \\n \\nNuremberg, February 9, 2024 \\nKPMG AG \\nWirtschaftsprüfungsgesellschaft \\n \\n \\nKoeplin \\nWirtschaftsprüfer \\n[German Public Auditor] \\nBehrendt \\nWirtschaftsprüferin \\n[German Public Auditor] \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Additional Information \\n382 \\nADDITIONAL INFORMATION \\n \\nThe PUMA Share \\n383 \\nPUMA Year-on-Year Comparison \\n385 \\nPUMA Group Development \\n387 \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Additional Information \\n \\n383 \\nTHE PUMA SHARE \\nThe PUMA share had a negative performance in financial year 2023. The closing price of the PUMA share on the last trading day in 2023 (30 December) was € 50.52 and \\nthus 10.8% lower than the closing price of the previous year. The market capitalisation of the PUMA Group fell accordingly from € 8.5 billion at the end of 2022 to \\n€ 7.6 billion at the end of 2023. The PUMA share started 2023 at a price of € 56.70 and fluctuated between € 67.22 (3 February 2023 / +18.6%) and € 44.36 (26 May 2023 / -\\n21.8%) in the following twelve months. The daily trading volume of PUMA shares decreased from an average of 519 thousand shares in the previous year to an average of \\n423 thousand shares in financial year 2023. \\n↗ T.01 KEY DATA PER SHARE* \\n \\n \\n2023\\n2022\\n2021\\n2020\\n2019\\n2018\\n2017\\nEnd of year price \\n€\\n50.52\\n56.70\\n107.50\\n92.28 \\n68.35 \\n42.70 \\n36.30\\nHighest price listed \\n€\\n67.22\\n108.00\\n114.70\\n92.28 \\n72.95 \\n52.50 \\n39.14\\nLowest price listed \\n€\\n44.36\\n43.85\\n80.42 \\n42.14 \\n43.00 \\n31.70 \\n24.35\\nDaily trading volume (Ø) \\namount in \\nthousands\\n423\\n519\\n281 \\n423 \\n387 \\n444 \\n67\\nEarnings per share \\n€\\n2.03\\n2.36\\n2.07 \\n0.53 \\n1.76 \\n1.25 \\n9.09\\nGross cashflow per share \\n€\\n6.43\\n6.14\\n5.49 \\n3.50 \\n4.71 \\n2.66 \\n2.21\\nFree cashflow (before acquisitions) per \\nshare \\n€\\n2.46\\n1.19\\n1.85 \\n1.85 \\n2.22 \\n1.00 \\n0.86\\nShareholders' equity per share \\n€\\n17.23\\n16.97\\n15.23 \\n11.79 \\n12.84 \\n11.52 \\n11.09\\nDividend per share \\n€\\n0.82\\n0.82\\n0.72 \\n0.16 \\n0.50 \\n0.35 \\n1.25**\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n* \\nDisclosures for the prior periods were adjusted retroactively to the 1:10 stock split carried out in the second quarter of 2019 \\n** one time/special dividend \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Additional Information \\n \\n384 \\n↗ G.01 PUMA SHARE PERFORMANCE / TRADING VOLUME \\n \\n↗ G.02 SHARE DEVELOPMENT - REBASED \\n \\nThe PUMA share has been registered for the regulated market on German stock exchanges since 1986. It is \\nlisted in the Prime Standard Segment and the Mid-Cap Index MDAX of the German Stock Exchange \\n(Deutsche Börse). Moreover, membership in the FTSE4Good index was once again confirmed. \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Additional Information \\n \\n385 \\nPUMA YEAR-ON-YEAR COMPARISON \\n↗ T.02 PUMA YEAR-ON-YEAR COMPARISON (in € million) \\n \\n2023\\n2022\\nDeviation\\nSales \\n \\n \\n \\nConsolidated sales \\n8,601.7 \\n8,465.1 \\n1.6%\\n- Footwear \\n4,583.4 \\n4,317.9 \\n6.1%\\n- Apparel \\n2,763.0 \\n2,896.3 \\n-4.6%\\n- Accessories \\n1,255.3 \\n1,251.0 \\n0.3%\\n \\n \\n \\n \\nResult of operations \\n \\n \\n \\nGross profit \\n3,986.6 \\n3,902.7 \\n2.1%\\nEBIT \\n621.6 \\n640.6 \\n-3.0%\\nEBT \\n478.3 \\n551.7 \\n-13.3%\\nNet earnings attributable to shareholders of PUMA SE \\n304.9 \\n353.5 \\n-13.7%\\n \\n \\n \\n \\nProfitability \\n \\n \\n \\nGross profit margin \\n46.3% \\n46.1% \\n0.2%pt\\nEBT margin \\n5.6% \\n6.5% \\n-1.0%pt\\nNet earnings margin \\n3.5% \\n4.2% \\n-0.6%pt\\nReturn on capital employed (ROCE) \\n25.1% \\n28.4% \\n-3.3%pt\\nReturn on equity (ROE) \\n11.8% \\n13.9% \\n-2.1%pt\\n \\n \\n \\n \\nBalance sheet \\n \\n \\n \\nTotal equity \\n2,582.3 \\n2,538.8 \\n1.7%\\n- Equity ratio \\n38.9% \\n37.5% \\n1.4%pt\\nWorking capital \\n1,177.3 \\n1,086.8 \\n8.3%\\n- in % of consolidated sales \\n13.7% \\n12.8% \\n0.8%pt\\n \\n \\n \\n \\nCash flow and investments \\n \\n \\n \\nGross cash flow \\n964.1 \\n918.9 \\n4.9%\\nFree cash flow \\n369.0 \\n177.5 \\n107.9%\\nInvestments (before acquisitions) \\n300.4 \\n263.6 \\n13.9%\\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Additional Information \\n \\n386 \\n \\n2023\\n2022\\nDeviation\\nEmployees \\n \\n \\n \\nNumber of employees (annual average) \\n18,023 \\n16,669 \\n8.1%\\nSales per employee (k€) \\n477.3 \\n507.8 \\n-6.0%\\n \\n \\n \\n \\nPUMA share \\n \\n \\n \\nShare price (in €) \\n50.52 \\n56.70 \\n-10.8%\\nAverage outstanding shares (in million) \\n149.85 \\n149.65 \\n0.1%\\nNumber of shares outstanding as of 31 Dec. (in million shares) \\n149.84 \\n149.76 \\n0.1%\\nEarnings per share (in €) \\n2.03 \\n2.36 \\n-14.0%\\nMarket capitalization \\n7,570 \\n8,491 \\n-10.8%\\nAverage trading volume (amount/day) \\n423,200 \\n519,477 \\n-18.5%\\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Additional Information \\n387 \\nPUMA GROUP DEVELOPMENT \\n↗ T.03 PUMA GROUP DEVELOPMENT (in € million) \\n \\n2023 \\n2022\\n2021\\n2020\\n2019 \\n2018 \\n2017 \\n2016 \\n2015 \\n2014 \\nSales \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nConsolidated sales \\n8,601.7\\n8,465.1\\n6,805.4\\n5,234.4\\n5,502.2\\n4,648.3\\n4,135.9\\n3,626.7\\n3,387.4\\n2,972.0\\n- Change in % \\n1.6%\\n24.4%\\n30.0%\\n-4.9%\\n18.4%\\n12.4%\\n14.0%\\n7.1%\\n14.0%\\n-0.4%\\n- Footwear \\n4,583.4\\n4,317.9\\n3,163.6\\n2,367.6\\n2,552.5\\n2,184.7\\n1,974.5\\n1,627.0\\n1,506.1\\n1,282.7\\n- Apparel \\n2,763.0\\n2,896.3\\n2,517.3\\n1,974.1\\n2,068.7\\n1,687.5\\n1,441.4\\n1,333.2\\n1,244.8\\n1,103.1\\n- Accessories \\n1,255.3\\n1,251.0\\n1,124.5\\n892.7\\n881.1\\n776.1\\n719.9\\n666.5\\n636.4\\n586.3\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nResult of operations \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nGross profit \\n3,986.6\\n3,902.7\\n3,257.8\\n2,458.0\\n2,686.4\\n2,249.4\\n1,954.3\\n1,656.4\\n1,540.2\\n1,385.4\\n- Gross profit margin \\n46.3%\\n46.1%\\n47.9%\\n47.0%\\n48.8%\\n48.4%\\n47.3%\\n45.7%\\n45.5%\\n46.6%\\nRoyalty and commission income \\n38.5\\n33.8\\n23.9\\n16.1\\n25.1\\n16.3\\n15.8\\n15.7\\n16.5\\n19.4\\nEBIT \\n621.6\\n640.6\\n557.1\\n209.2\\n440.2\\n337.4\\n244.6\\n127.6\\n96.3\\n128.0\\n- EBIT margin \\n7.2%\\n7.6%\\n8.2%\\n4.0%\\n8.0%\\n7.3%\\n5.9%\\n3.5%\\n2.8%\\n4.3%\\nEBT \\n478.3\\n551.7\\n505.3\\n162.3\\n417.6\\n313.4\\n231.2\\n118.9\\n85.0\\n121.8\\n- EBT margin \\n5.6%\\n6.5%\\n7.4%\\n3.1%\\n7.6%\\n6.7%\\n5.6%\\n3.3%\\n2.5%\\n4.1%\\nNet earnings attributable to shareholders of PUMA SE \\n304.9\\n353.5\\n309.6\\n78.9\\n262.4\\n187.4\\n135.8\\n62.4\\n37.1\\n64.1\\n- Net margin \\n3.5%\\n4.2%\\n4.5%\\n1.5%\\n4.8%\\n4.0%\\n3.3%\\n1.7%\\n1.1%\\n2.2%\\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Additional Information \\n388 \\n \\n2023 \\n2022\\n2021\\n2020\\n2019 \\n2018 \\n2017 \\n2016 \\n2015 \\n2014 \\nExpenses \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nMarketing/retail \\n1,643.2\\n1,578.5\\n1,309.1\\n1,050.2\\n1,112.1\\n931.2\\n822.9\\n732.3\\n697.6\\n599.7\\nPersonnel \\n900.6\\n846.5\\n712.4\\n583.7\\n640.5\\n553.8\\n549.1\\n493.1\\n483.8\\n425.3\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nBalance sheet \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nTotal assets \\n6,640.4\\n6,772.7\\n5,728.3\\n4,684.1\\n4,378.2\\n3,207.2\\n2,853.8\\n2,765.1\\n2,620.3\\n2,549.9\\nTotal equity \\n2,582.3\\n2,538.8\\n2,278.5\\n1,763.9\\n1,902.3\\n1,722.2\\n1,656.7\\n1,722.2\\n1,619.3\\n1,618.3\\n- Equity ratio \\n38.9%\\n37.5%\\n39.8%\\n37.7%\\n43.4%\\n53.7%\\n58.1%\\n62.3%\\n61.8%\\n63.5%\\nWorking capital \\n1,177.3\\n1,086.8\\n727.9\\n465.8\\n549.4\\n503.9\\n493.9\\n536.6\\n532.9\\n455.7\\n- thereof: inventories \\n1,804.4\\n2,245.1\\n1,492.2\\n1,138.0\\n1,110.2\\n915.1\\n778.5\\n718.9\\n657.0\\n571.5\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nCash flow \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nFree cash flow \\n369.0\\n177.5\\n276.2\\n276.0\\n330.0\\n172.9\\n128.5\\n49.7\\n-98.9\\n39.3\\nInvestments (incl. acquisitions) \\n300.4\\n263.6\\n202.4\\n151.0\\n218.4\\n130.2\\n122.9\\n91.1\\n79.5\\n96.4\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nProfitability \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nReturn on equity (ROE) \\n11.8%\\n13.9%\\n13.6%\\n4.5%\\n13.8%\\n10.9%\\n8.2%\\n3.6%\\n2.3%\\n4.0%\\nReturn on capital employed (ROCE) \\n25.1%\\n28.4%\\n31.9%\\n15.1%\\n29.6%\\n25.8%\\n20.7%\\n10.3%\\n7.9%\\n11.5%\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Additional Information \\n389 \\n \\n2023 \\n2022\\n2021\\n2020\\n2019 \\n2018 \\n2017 \\n2016 \\n2015 \\n2014 \\nAdditional information \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nNumber of employees (year-end) \\n18,681\\n18,071\\n16,125\\n14,374\\n14,332\\n12,894\\n11,787\\n11,495\\n11,351\\n11,267\\nNumber of employees (annual average) \\n18,023\\n16,669\\n14,846\\n13,016\\n13,348\\n12,192\\n11,389\\n11,128\\n10,988\\n10,830\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nPUMA share* \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nShare price (in €) \\n50.52\\n56.70\\n107.50\\n92.28\\n68.35\\n42.70\\n36.30\\n24.97\\n19.87\\n17.26\\nEarnings per share (in €) \\n2.03\\n2.36\\n2.07\\n0.53\\n1.76\\n1.25\\n0.91\\n0.42\\n0.25\\n0.43\\nAverage outstanding shares (in million) \\n149.85\\n149.65\\n149.59\\n149.56\\n149.52\\n149.47\\n149.43\\n149.40\\n149.40\\n149.40\\nNumber of shares outstanding as of 31 Dec. \\n(in million shares) \\n149.84\\n149.76\\n149.61\\n149.58\\n149.55\\n149.51\\n149.46\\n149.40\\n149.40\\n149.40\\nMarket capitalization \\n7,570\\n8,491\\n16,083\\n13,804\\n10,222\\n6,384\\n5,426\\n3,730\\n2,968\\n2,578\\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n* \\nDisclosures for the prior periods were adjusted retroactively to the 1:10 stock split carried out in the second quarter of 2019 \\n \\n\\n\\nPUMA Annual Report 2023 \\n↗ Imprint \\n390 \\nIMPRINT \\nPUBLISHER \\nPUMA SE \\nPUMA Way 1 \\n91074 Herzogenaurach \\nGermany \\n+49 (0)9132 81-0 \\nwww.about.puma.com \\nCORPORATE COMMUNICATIONS \\nKerstin Neuber \\nSenior Director Corporate Communications \\nkerstin.neuber@puma.com \\nINVESTOR RELATIONS \\nGottfried Hoppe \\nDirector Investor Relations & Finance Strategy \\ngottfried.hoppe@puma.com \\nPEOPLE & ORGANIZATION \\nDietmar Knoess \\nVice President People & Organization \\ndietmar.knoess@puma.com \\n \\nSUSTAINABILITY \\nStefan Seidel \\nSenior Director Corporate Sustainability \\nstefan.seidel@puma.com \\n \\nVeronique Rochet \\nSenior Director Sustainability \\nveronique.rochet@puma.com \\nDESIGN AND LAYOUT \\n3st kommunikation GmbH \\nwww.3st.de \\nREALISATION \\nProduced inhouse with firesys \\nwww.firesys.de \\n \\n \\n\\n\\n \\n \\nHALF-YEAR FINANCIAL REPORT \\nJANUARY TO JUNE 2024 \\n\\n\\n2 \\n \\nCONTENT \\n \\nKey Figures \\n3 - 4 \\nInterim Management Report \\n \\n- General Economic Conditions \\n5 \\n \\n- Brand and Strategy Update \\n5 - 8 \\n \\n- Sales and Earnings Development \\n9 - 11 \\n \\n- Net Assets and Financial Position \\n12 \\n \\n- Outlook \\n13 \\nCondensed Interim Consolidated Financial Statements \\n \\n- Balance Sheet \\n14 \\n \\n- Income Statement \\n15 \\n \\n- Statement of Comprehensive Income \\n16 \\n \\n- Cashflow Statement \\n17 \\n \\n- Statement of Changes in Equity \\n18 \\n \\n- Operating Segments \\n19 - 20 \\n \\n- Notes to the Interim Consolidated Financial Statements \\n21 – 27 \\nManagement Board / Supervisory Board \\n28 \\nFinancial Calendar \\n29 \\n \\n\\n\\n3 \\n \\n \\n \\nArne Freundt, CEO: \\n \\n“With our second quarter operating performance, \\nwe fully delivered on our outlook for the quarter and \\nare well on track to deliver on our outlook for the full \\nyear. I could not be prouder of our team and our \\nstrong retail partnerships, which were key to \\ndelivering this result in an environment of increased \\ncurrency headwinds, stressed supply chains and \\nmacroeconomic and geopolitical challenges that are \\nweighing on consumer sentiment around the world. \\nWith view to our strong orderbook for the second \\nhalf of the year, we reiterate our sales growth \\noutlook in the MSD range and are narrowing our full-\\nyear EBIT outlook range to € 620 – 670 million EBIT \\nin light of these external factors. \\nWith our continued focus on a good sell-through and \\ndisciplined sell-in, we were able to improve our \\nwholesale business in all regions, except EEMEA. \\nWith our strong order book for the second half of \\nthe year, we will see further improvement in our \\nwholesale business in the coming quarters. The \\nrobust demand for the PUMA brand continues to be \\ndriven by our great product newness and innovation \\nwhich we launched in the past months. There is \\nmore to come in the second half of the year. \\n \\n \\nKey Figures\\n1-6/2024\\n1-6/2023\\nDevi-\\n€ million\\n€ million\\nation\\nSales\\n4,219.6 \\n4,308.3 \\n-2.1% \\nGross profit margin\\n47.2% \\n45.7% \\nOperating result (EBIT)\\n276.2 \\n290.9 \\n-5.1% \\nNet income\\n129.3 \\n172.3 \\n-25.0% \\n - in % of sales\\n3.1% \\n4.0% \\nTotal assets\\n6,966.3 \\n6,899.7 \\n1.0% \\nEquity ratio in %\\n38.1% \\n37.1% \\nWorking capital\\n1,643.7 \\n1,693.0 \\n-2.9% \\nGross cash flow\\n388.1 \\n491.4 \\n-21.0% \\nFree cash flow (before acquisitions) \\n-204.4 \\n-341.4 \\nEarnings per share (in €) \\n0.86 \\n1.15 \\n-25.0% \\nGross cash flow per share (in €) \\n2.59 \\n3.28 \\n-21.0% \\nFree cash flow per share (before acquisitions) (in €) \\n-1.36 \\n-2.28 \\nShare price at end of the reporting period (in €)\\n42.87 \\n55.12 \\n-22.2% \\nMarket capitalisation at end of the reporting period\\n6,397 \\n8,255 \\n-22.5% \\nInvestments in property, plant and equipment and intangible assets \\n125.4 \\n158.0 \\n-20.7% \\n\\n\\n4 \\n \\nOn the performance side, ULTRA, PUMA’s fastest \\nfootball boot, Deviate Nitro Elite 3, PUMA’s fastest \\nrunning shoe, and MB.04, PUMA’s latest version of \\nits bestseller signature shoe with LaMelo Ball will be \\nthe key newness and innovations for the second half \\nof 2024. Together with our new design partner \\nSalehe Bembury, we will continue to stir up the \\nbasketball market with new disruptive designs in the \\ncoming year. \\nOn the Sportstyle side, we are continuing to see \\nstrong sell-through with our family footwear retail \\npartners, while we are making good progress in the \\ntransition of our Sportstyle Prime offer with Palermo, \\nSuede XL and Easy Rider. We are very encouraged \\nby the first launches of Speedcat in the elevated \\ndistribution channels globally and by the great \\nfeedback of our retail partners on our product line-\\nup. We are very confident about the future success \\nof the low-profile silhouette and are happy to \\nwelcome Rosé, the iconic K-Pop star, as great new \\nambassador for this emerging trend. \\nWe continue to focus our efforts on increasing the \\nbrand desirability for the long-term growth of the \\nPUMA brand. With our first global brand campaign \\nin ten years, we have done the first steps and \\nimproved our brand consideration with consumers. \\nDelivering great innovation and newness are further \\npillars of that strategy. With the Euros, Copa \\nAmerica and now the Olympics, we have the perfect \\nstage to create great brand visibility and credibility \\nin our unmissable “fireglow” shoe colourway and \\nshowcase the superiority of our Nitro foam \\ntechnology which enhances the performance of elite \\nand everyday athletes. We are very proud of the \\nachievements of our athletes and are grateful to \\ncelebrate these amazing sporting events and iconic \\nmoments together with them.” \\n \\n \\n\\n\\n5 \\n \\nInterim Management Report \\n \\n \\nGENERAL ECONOMIC CONDITIONS \\n \\nAccording to the summer forecast published by the \\nKiel Institute for the World Economy (ifw Kiel) on 13 \\nJune 2024, the global economy has expanded at a \\nmoderate pace so far this year. The main reason for \\nthis was that production in the emerging economies \\n- and particularly in China - grew much more \\nstrongly than before. In the advanced economies, \\non the other hand, economic expansion continued at \\na somewhat slower pace overall. \\n \\n \\nBRAND AND STRATEGY UPDATE \\n \\nMaking Progress in Brand Elevation \\nWith many important events such as the Olympic \\nGames, UEFA Euro 2024 and CONMEBOL Copa \\nAmerica, 2024 is undoubtedly a year of sports. \\nPUMA took this as an opportunity to launch our \\nbiggest-ever brand campaign to elevate the \\nbrand, one of the cornerstones of our strategy \\ntogether with increasing product excellence and \\nimproving our distribution quality. \\n \\nThe campaign “FOREVER. FASTER. - See The \\nGame Like We Do” conveys the brand’s unique \\nconnection with speed and is communicated across \\nthe entire media mix, such as Social Media, TV, PR, \\nOut Of Home Media and Points of Sale worldwide. \\nFollowing the launch in April, from which we \\nreceived very positive feedback, PUMA followed \\nup with additional chapters of the campaign fully \\ndedicated to Euro 2024, Copa America and our \\n \\n \\n \\nbest-in-class athletes at these events such as \\nNeymar Jr., Xavi Simons, Kai Havertz and Cody \\nGakpo. \\n \\nGreat Performances by PUMA Athletes and \\nTeams \\nThe great performance of our sponsored teams and \\nathletes underscored our credibility as a sports \\nbrand across the world. At Euro 2024, our players \\nand teams ensured fantastic visibility throughout \\nthe tournament, with PUMA-Teams Austria and \\nSwitzerland \\nputting \\nup \\nsome \\nfantastic \\nperformances to progress to the knock-out stages. \\n \\nThe success of our club teams also contributed to \\nour brand visibility, as Manchester City secured \\nthe Premier League title for the fourth consecutive \\nyear, while Borussia Dortmund reached the final \\nof the Champions League, Europe’s most coveted \\ncompetition. \\nWith \\nFrench \\ndefender \\nTheo \\nHernández and US midfielder Weston McKenny, \\nPUMA signed two young players at the top of their \\ngame to become brand ambassadors. \\n \\nIn track and field, PUMA athletes broke three world \\nrecords in the first half of 2024, underscoring the \\ngreat performance of our spikes. Ukrainian high \\njumper Yaroslava Mahuchickh showed her \\nincredible form ahead of the Olympic Games by \\nbreaking the 37-year-old high jump world record \\nwith a 2.10m jump. Pole vaulter Armand “Mondo” \\n \\n \\n \\nDuplantis once again soared to new heights, \\nbreaking his own world record for the ninth time by \\nraising the bar to 6.25m. In March, Devynne \\nCharlton from the Bahamas set a new 60m hurdles \\nworld record. Our track and field athletes also shone \\nat the European Athletics Championships in Rome, \\nwinning seven gold, ten silver and seven bronze \\nmedals. \\n \\nSupported \\nby \\nour \\naward-winning \\nNITROTM \\ntechnology, our road running athletes also went \\nfrom strength to strength this year. For the first time \\nin decades, PUMA athletes reached the podium \\nat international marathon majors, with Vivian \\nCheruiyot coming in third in Paris and Edna Kiplagat \\ntaking third position in Boston. \\n \\nAt the Olympic Games in Paris, PUMA equips 17 \\nfederations and more than 350 athletes across a \\nrange of different sports. Most recently, PUMA \\njoined forces with the Athletic Federation of India as \\nan Official Kit Partner. PUMA will also outfit seven \\nfederations at the Paralympic Games in Paris. \\n \\nThroughout this year of sports, PUMA enjoyed great \\nvisibility with the eye-catching “fireglow” colours of \\nour football boots and track and field spikes worn by \\nour athletes. \\n \\n \\n\\n\\n6 \\n \\n \\n \\nTo build on our strong portfolio of brand \\nambassadors on the entertainment side, we \\nwelcomed Rosé, a member of one of the best-\\nselling girl groups of all time, South Korean musical \\nquartet BLACKPINK. With a dedicated fanbase \\nacross the globe, the K-Pop idol will support classic \\nfranchises in PUMA’s Sportstyle category including \\nthe Palermo. \\n \\nRebounding in China \\nPUMA has focused on strengthening its credibility as \\na sports brand in China, for example by sponsoring \\nthe Diamond League event in Xiamen and by \\nbeing among the top 10 brands at the Wuxi \\nMarathon, one of the world’s largest running \\nevents. To capture the popularity of basketball in the \\ncountry, PUMA took its NBA ambassador Scoot \\nHenderson on a tour of China. \\n \\nThe announcement of our collaboration with K-Pop \\nstar Rosé also struck a chord with Chinese \\nconsumers, as it generated PUMA’s biggest social \\nmedia stir in China over the past years. The Formula \\n1 Grand Prix in China gave us the opportunity to \\nshowcase the best of the PUMA brand and the \\nFormula 1 collection in a successful live event on \\nChinese e-commerce platform Tmall, which \\nengaged millions of viewers. PUMA also leveraged \\nits ambassadors from the world of music and \\nentertainment to further build up brand momentum \\nin Sportstyle. In 2024, PUMA signed singer-\\nsongwriter Henry Lau and featured him in a \\nsuccessful dance campaign which created great \\nengagement on social media. \\n \\n \\nHenry Lau also helped PUMA promote locally \\ndesigned apparel collections, which incorporated \\nlocal fitting and design details and resonated well \\nwith consumers. Our Palermo and Speedcat \\nsneakers became bestselling franchises, with the \\nSpeedcat immediately selling out at its initial launch. \\nThese and other measures resulted in PUMA \\ncontinuing to build up momentum to rebound \\nin China despite the difficult market environment. \\nThis was underscored by the results of the recent \\n6/18 shopping holiday, where PUMA clearly \\nexceeded last year’s results. \\n \\nWinning in the USA \\nAs official partners of CONMEBOL, the Copa \\nAmerica tournament in the US offered a great \\nopportunity to position PUMA as a performance \\nbrand in the country and enjoy great visibility. We \\nharnessed the appeal of our football brand \\nambassadors Neymar Jr. and Christian Pulisic, \\nwho hosted events ahead of the tournament to \\ncreate excitement. \\n \\nIn road running, our NITROTM technology propelled \\nFiona O’Keeffe and Dakotah Lindwurm to first and \\nthird at the US Olympic Marathon Trials, \\nunderscoring our successful return to performance \\nrunning. Our lightweight NITROFOAM™, which \\noffers exceptional rebound, also features in our \\nbasketball style All-Pro NITRO™, which became \\nthe official shoe of leading amateur basketball circuit \\nNXTPro Hoops. PUMA used the cultural appeal of \\nmotorsports to launch an exclusive collection with \\nFerrari for the Miami Grand Prix, which sold out \\nimmediately.\\n \\n \\nWe drove brand heat through our strong \\npartnerships with ambassadors from music and \\nentertainment, especially PUMA’s power couple \\nRihanna and A$AP Rocky. Rihanna continues to \\nmake waves with the back-to-school editions of her \\nsneakers Creeper and Avanti while A$AP Rocky \\nteamed up with PUMA to present the Inhale \\nsneaker, an immediate sell-out success. PUMA \\ndoubled down on its culture-first approach to \\nbasketball by signing trailblazing footwear designer \\nSalehe Bembury, to reimagine the signature shoe \\ncategory in basketball. \\n \\nIn terms of organisation, we welcomed Tara McRae \\nas Senior Vice President Marketing and Brand \\nStrategy North America. She will lead all elements of \\nthe North American Marketing organisation to drive \\nprofitable growth and build brand equity. Tara had \\nalready worked at PUMA previously but spent the \\npast four years as the Chief Marketing Officer & \\nDigital Officer at Clark’s. \\n \\nTo be closer to our most important entertainment \\nand music ambassadors, we announced that we \\nwould open a creative space in Los Angeles that will \\ndesign campaigns and products for the US market. \\nTo support future growth in the US market from an \\noperational point of view, PUMA opened a new \\ndistribution centre in Arizona. \\n \\n\\n\\n7 \\n \\n \\n \\nOngoing Momentum in Performance \\nThe success of our athletes highlights the \\nperformance of our products and our design and \\ndevelopment teams introduced exciting new \\ninnovations to the market in the first half of 2024. \\n \\nIn football, the seventh generation of the FUTURE \\nboot empowers our athletes, such as Neymar Jr., Kai \\nHavertz and Julia Grosso to experience a new level \\nof freedom of movement. PUMA also unveiled the \\nsixth edition of its speed boot ULTRA with a new \\nhigh-performance outsole design, which generated \\ngreat sell through. \\n \\nThe gripping performances of PUMA-Teams Austria \\nand Switzerland led to a sell-out success of the \\njerseys, while the fan shirt campaign with German \\ncomparison platform Check24 generated fantastic \\nvisibility in the summer of sports. \\n \\nIn Running, the third iteration of PUMA’s award-\\nwinning running shoe Deviate NITROTM is \\nengineered with even more NITROFOAM™ to deliver \\nsupreme cushioning and responsiveness. Our \\ninnovations are also recognised by running experts \\naround the world, as PUMA’s ultimate race-day \\nrunning shoe FAST-R2 was awarded the prestigious \\nSpanish CORREDOR award for the best new shoe of \\nthe year. \\n \\n \\n \\n \\n \\nOur running models will feature prominently in our \\nnew global partnership with HYROX, the world \\nseries of fitness racing. As part of the agreement, \\nPUMA will develop a full range of innovative HYROX \\napparel and bespoke footwear models. \\n \\nIn Baskeball, PUMA used the great momentum of \\nthe signature basketball shoes with NBA-star \\nLaMelo Ball, to expand into a signature lifestyle \\nseries with him. The LaFrancé sneaker gets its \\ninspiration and name from LaMelo’s official lifestyle \\nbrand specialising in designer streetwear. PUMA \\nintroduced the latest signature shoe with WNBA \\nstar Breanna Stewart, the Stewie 3, which apart \\nfrom its striking design incorporates the latest of \\nPUMA’s performance technology. \\n \\nIn Golf, Cobra launched a new driver series called \\nDARKSPEED. It was designed by aerospace \\nengineers and is built for extraordinary speed and \\ndistance. \\n \\nBuilding Up Traction with Sportstyle Newness \\nPUMA presented significant product newness in its \\nSportstyle offering. Maximising the current terrace \\nand skate trends, we launched new versions of our \\nsuccessful Palermo and Suede XL sneakers, which \\nare continuing to resonate well with our consumers. \\nThe classic running style Easy Rider, with its \\nsought-after T-toe style, was also brought back for \\na new generation, with great feedback from our \\naccounts and customers. To raise awareness for \\nPUMA’s other Classics franchises, we launched the \\ncommunications platform “Rewrite the Classics”.\\n \\n \\n \\nPUMA also helped create the next trends, as we \\nshowed with the successful introduction of our low-\\nprofile styles Mostro and Speedcat. We believe \\nthat given our amazing archive of low-profile \\nsneakers, we can own and lead this emerging trend. \\nBy taking PUMA’s new styles to the catwalk and \\ncollaborating with A$AP Rocky, renowned fashion \\ndesigner Kid Super and others for Paris Fashion \\nWeek, PUMA secured in-depth coverage from the \\nmost prestigious fashion magazines in the world. \\nSought-after collaborations with British rapper \\nSkepta, who introduced the Skope Forever sneaker \\nand the football-inspired “Más Tiempo” collection, \\nand a collection with best-selling anime series One \\nPiece, were a sell-out success. \\n \\nMaking Strong Progress in Sustainability \\nIn the first half of 2024, PUMA achieved significant \\nmilestones in its sustainability journey. We scaled up \\nour RE:FIBRE technology, which transforms textile \\nwaste into new materials, and made millions of our \\nreplica shirts for 35 clubs and all teams at Euro 2024 \\nwith this recycled material. \\n \\nIn footwear, we introduced a commercial version of \\nour RE:SUEDE for sale, following a successful two-\\nyear \\ncomposting \\nexperiment. \\nThis \\nproject \\ndemonstrated that a special version of our classic \\nSuede sneaker can be turned into compost under \\ncertain industrial conditions. \\n \\n\\n\\n8 \\n \\n \\n \\nWe are encouraged that these initiatives and others, \\nwhich are part of PUMA’s FOREVER. BETTER. \\nsustainability strategy, were recognised, when \\nTIME Magazine listed PUMA on the “World’s Most \\nSustainable Companies” ranking as the only \\ncompany in our industry. \\n \\nOrganisational Changes \\nIn May, Harsh Saini and Roland Krüger were \\nelected as independent members of the PUMA’s \\nSupervisory Board for a period of three years. \\nHarsh Saini is a sustainability expert and has worked \\nfor brands such as the Body Shop, Nike and the Fung \\nGroup wheras Roland Krüger is an expert in the field \\nof retail management, marketing, and digitalisation. \\nHe currently serves as a member of the Board of \\nDirectors of Dyson Holdings. \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\n9 \\n \\nSales and Earnings Development \\n \\nSECOND QUARTER 2024 \\n \\nSales \\nSales grew by 2.1% (ca) to € 2,117.3 million, while \\ncurrencies continued to be a headwind, negatively \\nimpacting sales in euro terms by approximately € 50 \\nmillion in Q2 2024 (-0.2% reported). \\nSales in the Americas region increased by 9.0% (ca) \\nto € 887.5 million, with both the U.S. and LATAM \\ncontributing to the growth and showing a sequential \\nimprovement. The Asia/Pacific region recorded sales \\ngrowth of 1.9% (ca) to € 411.9 million, driven by \\ncontinued growth in Greater China and sequential \\nimprovement in the rest of APAC. In the EMEA \\nregion, sales decreased by 4.3% (ca) to € 817.9 \\nmillion due to a decline in EEMEA from a strong prior \\nyear quarter (EEMEA grew +111% ca in Q2 2023), \\nwhile Europe returned to growth. \\nPUMA's Wholesale business declined by 3.3% (ca) \\nto € 1,529.6 million, due to the decline in EEMEA. In \\nall other regions, the wholesale business improved \\nquarter-on-quarter, driven by continued good sell-\\nthrough and improved inventory levels in the trade. \\nOur Direct-to-Consumer (DTC) business grew by \\n19.5% (ca) to € 587.7 million, supported by \\ncontinued brand momentum and scaled back \\npromotions. Sales in owned & operated retail stores \\nincreased 16.5% (ca) and e-commerce increased \\n \\n \\n \\nof 27.8% (Q2 2023: 24.3%), in line with \\nexpectations. \\nSales in Footwear were flat (ca) at € 1,097.0 million \\non the back of a strong prior year quarter (Q2 2023: \\n+18.2% ca) with all Performance categories as well \\nas Sportstyle Core performing very well. Sales in \\nApparel grew by 9.2% (ca) to € 705.6 million, while \\nsales in Accessories declined by 4.7% (ca) to € 314.8 \\nmillion. \\n \\nGross Profit Margin \\nThe gross profit margin improved by 200 basis \\npoints to 46.8% (Q2 2023: 44.8%). Significant \\nheadwinds from currencies were more than offset by \\na favourable product and distribution channel mix as \\nwell as tailwinds from sourcing and freight. \\n \\nOperating Expenses \\nOperating expenses (OPEX) increased by 4.3% to \\n€ 879.3 million (Q2 2023: € 843.4 million). The \\nincrease was primarily due to the continued growth \\nof our DTC business and ramp-up costs of \\nwarehouse and digital infrastructure projects while \\nall non-demand creating costs remained under \\nstrong \\ncontrol. \\nIn \\naddition, \\ncurrency-related \\n \\n \\n \\nheadwinds weighed on the OPEX ratio, which \\nincreased by 180 basis points to 41.5% (Q2 2023: \\n39.8%). \\n \\nOperating Result (EBIT) \\nThe operating result (EBIT) increased by 1.6% to \\n€ 117.2 million (Q2 2023: € 115.3 million), despite \\nnegative currency effects on sales, gross profit \\nmargin and OPEX ratio. Consequently, the EBIT \\nmargin improved by 10 basis points to 5.5% (Q2 \\n2023: 5.4%). \\n \\nFinancial Result \\nThe financial result decreased to € -42.6 million (Q2 \\n2023: € -23.0 million) due to higher currency related \\nlosses and a lower interest result. \\n \\nNet Income and Earnings per Share \\nConsequently, net income decreased by 23.8% to \\n€ 41.9 million (Q2 2023: € 55.0 million) and earnings \\nper share amounted to € 0.28 (Q2 2023: € 0.37). \\nThe development of the operating result and net \\nincome is fully in line with our expectations that the \\nsecond half of the year, particularly in the fourth \\nquarter, will be stronger than the first half, and that \\nnet income will improve in line with the operating \\nresult outlook for FY 2024. \\n \\n\\n\\n10 \\n \\n \\n \\nSales by regions and product divisions\\n€ million\\n2024\\n2023\\nEuro\\ncurrency \\nadjusted\\n2024\\n2023\\nEuro\\ncurrency \\nadjusted\\n \\n \\n \\n \\n \\n \\n \\n \\n Breakdown by regions\\n EMEA\\n817.9 \\n846.0 \\n-3.3% \\n-4.3% \\n1,673.7 \\n1,729.7 \\n-3.2% \\n-2.2% \\n Americas\\n887.5 \\n861.5 \\n3.0% \\n9.0% \\n1,677.5 \\n1,689.4 \\n-0.7% \\n5.1% \\n Asia/Pacific\\n411.9 \\n413.3 \\n-0.3% \\n1.9% \\n868.5 \\n889.2 \\n-2.3% \\n1.2% \\n Total\\n2,117.3 \\n2,120.7 \\n-0.2% \\n2.1% \\n4,219.6 \\n4,308.3 \\n-2.1% \\n1.3% \\n Breakdown by product divisions\\n Footwear\\n1,097.0 \\n1,126.0 \\n-2.6% \\n0.0% \\n2,278.4 \\n2,336.4 \\n-2.5% \\n1.6% \\n Apparel\\n705.6 \\n663.3 \\n6.4% \\n9.2% \\n1,313.7 \\n1,311.0 \\n0.2% \\n3.5% \\n Accessories\\n314.8 \\n331.3 \\n-5.0% \\n-4.7% \\n627.5 \\n660.9 \\n-5.1% \\n-4.0% \\n Total\\n2,117.3 \\n2,120.7 \\n-0.2% \\n2.1% \\n4,219.6 \\n4,308.3 \\n-2.1% \\n1.3% \\ngrowth rates\\nSecond Quarter\\nFirst Half-Year\\nQ2\\ngrowth rates\\n1-6\\n\\n\\n11 \\n \\n \\n \\nFIRST HALF-YEAR 2024 \\n \\nSales \\nSales increased by 1.3% (ca) to € 4,219.6 million. \\nCurrencies were a major headwind, negatively \\nimpacting sales in euro terms by approximately \\n€ 150 million in H1 2024 (-2.1% reported). \\n \\nThe Americas region led the growth with a sales \\nincrease of 5.1% (ca) to € 1,677.5 million, followed \\nby the Asia/Pacific region with a sales increase of \\n1.2% (ca) to € 868.5 million, while sales in the EMEA \\nregion declined by 2.2% (ca) to € 1,673.7 million. \\n \\nPUMA’s Wholesale business declined by 3.1% (ca) \\nto € 3,137.7 million as a result of disciplined sell-in \\nand focus on good sell-through in preparation for a \\nstronger sell-in in H2 2024. Our Direct-to-Consumer \\n(DTC) business increased by 16.7% (ca) to \\n€ 1,081.9 million. Sales in owned & operated retail \\nstores increased 16.0% (ca) and e-commerce \\nincreased 18.1% (ca). This resulted in an increased \\nDTC share of 25.6% (H1 2023: 22.8%). \\n \\nAmong product divisions, sales in Footwear \\nincreased by 1.6% (ca) to € 2,278.4 million and \\nApparel grew by 3.5% (ca) to € 1,313.7 million. \\nAccessories decreased by 4.0% (ca) to € 627.5 \\nmillion. \\n \\n \\n \\n \\nGross Profit Margin \\nThe gross profit margin increased by 150 basis \\npoints to 47.2% (H1 2023: 45.7%). Major \\nheadwinds from currencies were more than offset by \\na favourable product and distribution channel mix as \\nwell as tailwinds from sourcing and freight. \\n \\nOperating Expenses \\nOperating expenses (OPEX) increased by 1.9% to \\n€ 1,724.6 million (H1 2023: € 1,691.7 million). The \\ncontinued growth of our DTC business and ramp-up \\ncosts for infrastructure projects were the main \\ndrivers of this increase. As a result, the OPEX ratio \\nwas up 160 basis points to 40.9% (H1 2023: \\n39.3%), also impacted by currency headwinds. \\n \\nResult before Interest, Taxes, Depreciation \\nand Amortisation (EBITDA) \\nThe result before interest, taxes, depreciation and \\namortisation (EBITDA) decreased to € 445.8 million \\nin the first half of 2024 (last year: € 455.6 million). \\n \\n \\n \\n \\n \\nOperating Result (EBIT) \\nThe operating result (EBIT) decreased by 5.1% to \\n€ 276.2 million (H1 2023: € 290.9 million), mainly \\ndue to negative currency effects on sales, the gross \\nprofit margin and the OPEX ratio, which resulted in \\nan EBIT margin of 6.5% (H1 2023: 6.8%). \\n \\nFinancial Result \\nThe financial result decreased to € -69.4 million (H1 \\n2023: € -30.8 million) due to a lower interest result \\nand higher currency related losses. \\n \\nNet Income and Earnings per Share \\nConsequently, net income decreased by 25.0% to \\n€ 129.3 million (H1 2023: € 172.3 million) and \\nearnings per share amounted to € 0.86 (H1 2023: \\n€ 1.15). \\nThe development of the operating result and net \\nincome is fully in line with our expectations that the \\nsecond half of the year, particularly in the fourth \\nquarter, will be stronger than the first half, and that \\nnet income will improve in line with the operating \\nresult outlook for FY 2024. \\n\\n\\n12 \\n \\nNet Assets and Financial Position \\n \\n \\n \\nWorking Capital \\nThe working capital decreased by 2.9% to € 1,643.7 \\nmillion (30 June 2023: € 1,693.0 million). \\nInventories decreased by 8.6% to € 1,961.1 million \\n(30 June 2023: € 2,145.9 million). The quarter-on-\\nquarter increase mainly reflects the stronger order \\nbook for the second half of the year. The Group's \\ntotal inventory remains at a healthy level, while \\nquality has further improved. Trade receivables \\nincreased by 3.4% to € 1,394.7 million (30 June \\n2023: € 1,348.4 million). On the liabilities side, trade \\npayables increased by 13.1% to € 1,647.9 million \\n(30 June 2023: € 1,457.3 million). \\n \\n \\n \\nCashflow and Liquidity Situation \\nThe free cash flow was at € -204.4 million in the first \\nhalf of 2024 (H1 2023: € -341.4 million). As of \\n30 June 2024, PUMA had cash and cash equivalents \\nof € 271.8 million (30 June 2023: € 307.9 million). \\nIn addition, the PUMA Group had available credit \\nlines totalling € 1,411.7 million as of 30 June 2024 \\n(30 June 2023: € 1,592.5 million). Unutilised credit \\nlines amounted to € 595.4 million as of 30 June 2024 \\n(30 June 2023: € 846.0 million). \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\n13 \\n \\nOutlook 2024 \\n \\n \\n \\nGlobal Economy \\nAccording to the summer forecast published by the \\nKiel Institute for the World Economy (ifw Kiel) on 13 \\nJune 2024, the moderate global economic expansion \\nis likely to continue this year. The experts at ifw Kiel \\nexpect an increase in global production of around \\n3.2% for 2024 as a whole. There are risks with \\nregard to a longer than previously expected \\nrestrictive monetary policy. Further risks for the \\nglobal economy are primarily of a geopolitical nature \\nand result not least from the uncertainties \\nsurrounding the US presidential election. \\n \\nInvestments \\nInvestments in fixed assets of around € 300 million \\nare planned for 2024. The majority of these \\ninvestments will be in infrastructure in order to \\ncreate the operating conditions required for the \\nplanned long-term growth. The investments mainly \\nconcern own distribution and logistics centers, \\ninvestments in the expansion and modernisation of \\nthe company's own retail stores and investments in \\nIT infrastructure. \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\nAs in previous years, PUMA will continue to focus on \\nmanaging \\nshort-term \\nchallenges \\nwithout \\ncompromising the brand's medium- and long-term \\nmomentum. Our sales growth and market share \\ngains will take priority over short-term profitability. \\nThe very positive feedback from our retail partners \\nand consumers on our 2024/2025 product line-up \\nand go-to-market strategies gives us confidence for \\nthe medium and long term success and continued \\ngrowth of PUMA\\nOutlook 2024 \\nThe first half of the year was characterised by a \\nvolatile environment with persistent currency \\nheadwinds, stressed supply chains and muted \\nconsumer sentiment globally. In this challenging \\nenvironment, PUMA continued to make progress on \\nits strategic initiatives of brand elevation, product \\nexcellence and distribution quality with special focus \\non the U.S. and China, and focused on strong sell-\\nthrough and the best possible service to its retail \\npartners, brand ambassadors and consumers.\\nBased on the results of the first half year and \\nsupported by building brand momentum as well as \\nby our strong orderbook for the second half of the \\nyear, PUMA reiterates its outlook for the financial \\nyear 2024 of mid-single-digit currency-adjusted \\nsales growth. Taking into account the external \\nfactors of higher freight costs, changing duties and \\ncontinued muted consumer sentiment, especially in \\nChina, we narrow our outlook for the operating \\nresult (EBIT) to a range of € 620 million to € 670 \\nmillion. We expect net income to change in 2024 in\\n line with the operating result.\\n. \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n \\n\\n\\n14 \\n \\nCondensed Interim Consolidated Financial Statements (IFRS) \\n \\n \\n \\nJune 30,'24\\nJune 30,'23\\nDevi-\\nDec. 31,'23\\n€ million\\n€ million \\nation\\n€ million \\nASSETS\\nCash and cash equivalents\\n271.8 \\n307.9 \\n-11.7% \\n552.9 \\nInventories *\\n1,961.1 \\n2,145.9 \\n-8.6% \\n1,804.4 \\nTrade receivables *\\n1,394.7 \\n1,348.4 \\n3.4% \\n1,118.4 \\nOther current assets *\\n493.8 \\n374.3 \\n31.9% \\n385.6 \\nOther current assets\\n101.3 \\n77.2 \\n31.3% \\n69.8 \\nCurrent assets\\n4,222.7 \\n4,253.6 \\n-0.7% \\n3,931.1 \\nDeferred tax assets\\n282.8 \\n327.6 \\n-13.7% \\n296.1 \\nRight-of-use assets \\n1,069.2 \\n1,063.2 \\n0.6% \\n1,087.7 \\nOther non-current assets\\n1,391.6 \\n1,255.3 \\n10.9% \\n1,325.6 \\nNon-current assets\\n2,743.7 \\n2,646.1 \\n3.7% \\n2,709.3 \\nTotal Assets\\n6,966.3 \\n6,899.7 \\n1.0% \\n6,640.4 \\nLIABILITIES AND EQUITY\\nCurrent borrowings\\n466.6 \\n360.6 \\n29.4% \\n145.9 \\nTrade payables *\\n1,647.9 \\n1,457.3 \\n13.1% \\n1,499.8 \\nOther current liabilities *\\n558.0 \\n718.3 \\n-22.3% \\n631.3 \\nCurrent lease liabilities \\n213.0 \\n197.1 \\n8.1% \\n212.4 \\nOther current liabilities\\n15.8 \\n73.5 \\n-78.4% \\n47.7 \\nCurrent liabilities\\n2,901.3 \\n2,806.7 \\n3.4% \\n2,537.2 \\nNon-current borrowings\\n357.8 \\n427.6 \\n-16.3% \\n426.1 \\nDeferred tax liabilities\\n18.4 \\n51.5 \\n-64.3% \\n12.4 \\nPension provisions\\n24.0 \\n20.1 \\n19.2% \\n22.5 \\nNon-current lease liabilities \\n982.2 \\n997.3 \\n-1.5% \\n1,020.0 \\nOther non-current liabilities\\n29.0 \\n34.4 \\n-15.8% \\n40.0 \\nNon-current liabilities\\n1,411.3 \\n1,530.8 \\n-7.8% \\n1,520.9 \\nEquity\\n2,653.7 \\n2,562.2 \\n3.6% \\n2,582.3 \\nTotal Liabilities and Equity\\n6,966.3 \\n6,899.7 \\n1.0% \\n6,640.4 \\n* included in working capital\\nBalance Sheet\\n\\n\\n15 \\n \\n \\n \\n \\nQ2/2024\\nQ2/2023\\nDevi-\\n1-6/2024\\n1-6/2023\\nDevi-\\n€ million\\n€ million\\nation\\n€ million\\n€ million\\nation\\nSales\\n2,117.3 \\n2,120.7 \\n-0.2% \\n4,219.6 \\n4,308.3 \\n-2.1% \\nCost of sales\\n-1,126.7 \\n-1,170.9 \\n-3.8% \\n-2,230.0 \\n-2,341.6 \\n-4.8% \\nGross profit\\n990.6 \\n949.8 \\n4.3% \\n1,989.6 \\n1,966.8 \\n1.2% \\n - in % of sales\\n46.8%\\n44.8%\\n+2.0 pp\\n47.2%\\n45.7%\\n+1.5 pp\\nRoyalty and commission income\\n5.9 \\n8.9 \\n-33.4% \\n11.2 \\n15.9 \\n-29.5% \\nOther operating income and expenses \\n-879.3 \\n-843.4 \\n4.3% \\n-1,724.6 \\n-1,691.7 \\n1.9% \\nOperating result (EBIT) \\n117.2 \\n115.3 \\n1.6% \\n276.2 \\n290.9 \\n-5.1% \\n - in % of sales\\n5.5%\\n5.4%\\n+0.1 pp\\n6.5%\\n6.8%\\n-0.2 pp\\nFinancial result \\n-42.6 \\n-23.0 \\n85.7% \\n-69.4 \\n-30.8 \\n>100%\\nEarnings before taxes (EBT)\\n74.6 \\n92.4 \\n-19.3% \\n206.7 \\n260.1 \\n-20.5% \\n - in % of sales\\n3.5%\\n4.4%\\n-0.8 pp\\n4.9%\\n6.0%\\n-1.1 pp\\nTaxes on income\\n-18.4 \\n-23.0 \\n-20.3% \\n-51.4 \\n-65.0 \\n-20.9% \\n - Tax rate\\n24.6%\\n24.9%\\n-0.3 pp\\n24.9%\\n25.0%\\n-0.1 pp\\nNet income attributable to non-controlling interests\\n-14.3 \\n-14.3 \\n-0.1% \\n-26.1 \\n-22.8 \\n14.2% \\nNet income\\n41.9 \\n55.0 \\n-23.8% \\n129.3 \\n172.3 \\n-25.0% \\n - in % of sales\\n2.0%\\n2.6%\\n-0.6 pp\\n3.1%\\n4.0%\\n-0.9 pp\\nEarnings per share (€) \\n0.28 \\n0.37 \\n-23.8% \\n0.86 \\n1.15 \\n-25.0% \\nEarnings per share (€) - diluted \\n0.28 \\n0.37 \\n-23.8% \\n0.86 \\n1.15 \\n-25.0% \\nWeighted average shares outstanding (million shares) \\n149.79\\n149.80\\n0.0% \\nWeighted average shares outstanding - diluted (million shares) \\n149.83\\n149.81\\n0.0% \\nSecond Quarter\\nFirst Half-Year\\nIncome Statement\\n\\n\\n16 \\n \\n \\n \\n \\n \\nStatement of Comprehensive Income\\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\nConsolidated net income of the year before attribution\\n155.3 \\n195.1 \\nCurrency translation differences\\n57.1 \\n-15.4 \\nNet gain/ loss on cash flow hedges, net after tax\\n42.2 \\n-15.9 \\nNet gain/ loss from reserve for hedging costs - options, net after taxes\\n3.9 \\nNet gain/ loss from reserve for hedging costs - forward transactions, net after taxes\\n-10.9 \\nItems expected to be reclassified to the income statement in the future\\n92.3 \\n-31.3 \\nRemeasurements of the net defined benefit liability, net after tax\\n-0.3 \\n1.6 \\nNeutral effects financial assets through other comprehensive income (FVTOCI), net after tax\\n-0.6 \\n3.6 \\nItems not expected to be reclassified to the income statement in the future\\n-1.0 \\n5.2 \\nOther comprehensive income\\n91.3 \\n-26.1 \\nComprehensive income\\n \\n246.6 \\n169.1 \\nattributable to:\\nNon-controlling interests\\n27.0 \\n21.6 \\nShareholders of PUMA SE\\n219.7 \\n147.5 \\n\\n\\n17 \\n \\n \\n \\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\nEarnings before taxes (EBT)\\n206.7 \\n260.1 \\nFinancial result and non-cash effected expenses and income\\n181.4 \\n231.3 \\nGross cash flow\\n388.1 \\n491.4 \\nChange in current assets, net\\n-420.2 \\n-603.9 \\nPayments for taxes on income\\n-67.4 \\n-96.6 \\nNet cash used in operating activities\\n-99.5 \\n-209.0 \\nPayments for investing in fixed assets\\n-125.4 \\n-158.0 \\nOther investing and divestment activities incl. interest received\\n20.5 \\n25.6 \\nNet cash used in investing activities \\n-104.9 \\n-132.4 \\nFree cash flow\\n-204.4 \\n-341.4 \\nFree cash flow (before acquisitions)\\n-204.4 \\n-341.4 \\nDividends paid to shareholders of PUMA SE\\n-122.8 \\n-122.8 \\nDividends paid to non-controlling interests\\n-27.0 \\n-23.4 \\nProceeds from borrowings\\n374.0 \\n460.9 \\nCash repayments of borrowings\\n-125.0 \\n0.0 \\nRepayments of lease liabilities\\n-110.7 \\n-98.8 \\nRepurchase of treasury shares\\n-26.5 \\n0.0 \\nPayments of interest\\n-63.8 \\n-38.7 \\nNet cash used in/ from financing activities\\n-101.9 \\n177.3 \\nExchange rate-related changes in cash and cash equivalents\\n25.1 \\n8.9 \\nChanges in cash and cash equivalents\\n-281.1 \\n-155.2 \\nCash and cash equivalents at the beginning of the financial year\\n552.9 \\n463.1 \\nCash and cash equivalents at the end of the reporting period\\n271.8\\n307.9 \\nCash Flow Statement\\n\\n\\n18 \\n \\n \\n \\n \\nStatement of\\nSubscribed\\nCapital\\nTreasury\\nShare-\\nNon-\\nTotal\\nChanges in Equity\\ncapital\\nreserve\\nRevenue\\nDifference\\nCash flow\\nReserve for\\nReserve for\\nstock\\nholders'\\ncontrolling\\nEquity\\nreserves\\nfrom\\nhedges\\nhedging\\nhedging costs\\nequity\\ninterests\\n \\nincl. retained\\ncurrency\\ncosts\\n- forward\\n€ million\\nearnings\\nconversion\\n- options\\ntransactions\\n1 January 2023\\n150.8 \\n90.8 \\n2,496.2 \\n-256.8 \\n14.2 \\n0.0 \\n0.0 \\n-23.5 \\n2,471.7 \\n67.1 \\n2,538.8 \\nConsolidated net income of the year\\n0.0 \\n0.0 \\n172.3 \\n0.0 \\n0.0 \\n0.0 \\n172.3 \\n22.8 \\n195.1 \\nOther comprehensive income\\n0.0 \\n0.0 \\n5.2 \\n-14.2 \\n-15.9 \\n0.0 \\n-24.9 \\n-1.2 \\n-26.1 \\nComprehensive income\\n0.0 \\n0.0 \\n177.5 \\n-14.2 \\n-15.9 \\n0.0 \\n147.5 \\n21.6 \\n169.1 \\nDividends paid to shareholders of\\n PUMA SE / non-controlling interests \\n-122.8 \\n-122.8 \\n-23.4 \\n-146.2 \\nShare-based payment and Utilization\\n /Issue of treasury stock\\n0.3 \\n0.2 \\n0.4 \\n0.4 \\n30 June 2023\\n150.8 \\n91.0 \\n2,551.0 \\n-270.9 \\n-1.7 \\n0.0 \\n0.0 \\n-23.3 \\n2,496.8 \\n65.3 \\n2,562.2 \\n31 December 2023\\n150.8 \\n93.8 \\n2,677.0 \\n-342.7 \\n-3.9 \\n0.0 \\n0.0 \\n-21.6 \\n2,553.4 \\n28.9 \\n2,582.3 \\nEffect of transition to IFRS 9 (hedge\\n accounting), net after tax\\n-4.9 \\n-1.3 \\n6.2 \\n0.0 \\n0.0 \\n1 January 2024\\n150.8 \\n93.8 \\n2,672.1 \\n-342.7 \\n-3.9 \\n-1.3 \\n6.2 \\n-21.6 \\n2,553.4 \\n28.9 \\n2,582.3 \\nConsolidated net income of the year\\n0.0 \\n0.0 \\n129.3 \\n0.0 \\n0.0 \\n0.0 \\n129.3 \\n26.1 \\n155.3 \\nOther comprehensive income\\n0.0 \\n0.0 \\n-1.0 \\n56.1 \\n42.2 \\n3.9 \\n-10.9 \\n0.0 \\n90.4 \\n0.9 \\n91.3 \\nComprehensive income\\n0.0 \\n0.0 \\n128.3 \\n56.1 \\n42.2 \\n3.9 \\n-10.9 \\n0.0 \\n219.7 \\n27.0 \\n246.6 \\nGain and loss from hedging, that has\\n been reclassified to inventories\\n1.2 \\n1.2 \\n1.2 \\nDividends paid to shareholders of\\n PUMA SE / non-controlling interests \\n-122.8 \\n-122.8 \\n-27.0 \\n-149.8 \\nShare-based payment and Utilization\\n /Issue of treasury stock\\n2.9 \\n1.9 \\n4.8 \\n4.8 \\nRepurchase of treasury stock\\n-31.3 \\n-31.3 \\n-31.3 \\nChanges in the scope of consolidation\\n-0.1 \\n-0.1 \\n-0.1 \\n30 June 2024\\n150.8 \\n96.7 \\n2,677.7 \\n-286.7 \\n39.5 \\n2.6 \\n-4.7 \\n-51.0 \\n2,624.9 \\n28.9 \\n2,653.7 \\nOther reserves\\n\\n\\n19 \\n \\n \\n \\nOperating Segments 1-6/2024\\nRegions\\nSales\\nEBIT \\nInvestments\\n1-6/2024\\n1-6/2023\\n1-6/2024\\n1-6/2023\\n1-6/2024\\n1-6/2023\\n€ million\\n€ million \\n€ million\\n€ million\\n€ million\\n€ million\\nEurope\\n1,002.5 \\n1,013.0\\n131.5 \\n129.5\\n16.2 \\n9.7\\nEEMEA*\\n791.0 \\n868.1\\n166.2 \\n207.7\\n11.5 \\n12.6\\nNorth America\\n1,024.2 \\n1,037.4\\n117.5 \\n124.3\\n28.4 \\n47.1\\nLatin America\\n628.2 \\n625.9\\n122.5 \\n142.7\\n30.3 \\n44.8\\nGreater China\\n314.5 \\n305.1\\n61.2 \\n52.0\\n3.5 \\n2.6\\nAsia/ Pacific (without Greater China)*\\n201.8 \\n215.6\\n27.9 \\n32.0\\n2.3 \\n2.7\\nstichd\\n244.7 \\n237.1\\n34.4 \\n46.0\\n10.8 \\n6.0\\nOperating segments in total\\n4,206.9 \\n4,302.2\\n661.2 \\n734.1\\n103.0 \\n125.5\\n \\n \\n \\n \\n \\n \\nDepreciation and Amortisation\\nInventories\\nTrade Receivables \\n(3rd party)\\n1-6/2024\\n1-6/2023\\n1-6/2024\\n1-6/2023\\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\n€ million\\n€ million\\n€ million\\n€ million\\nEurope\\n33.5 \\n30.4\\n543.8 \\n613.6\\n275.9 \\n284.1\\nEEMEA*\\n31.4 \\n30.8\\n426.2 \\n410.6\\n346.6 \\n325.9\\nNorth America\\n42.1 \\n42.0\\n438.8 \\n611.9\\n275.9 \\n279.5\\nLatin America\\n24.5 \\n15.6\\n379.5 \\n364.4\\n277.6 \\n272.2\\nGreater China\\n14.8 \\n15.4\\n112.1 \\n116.2\\n54.1 \\n40.7\\nAsia/ Pacific (without Greater China)*\\n11.0 \\n11.5\\n64.8 \\n82.2\\n65.9 \\n68.0\\nstichd\\n7.0 \\n5.1\\n127.9 \\n102.8\\n95.1 \\n73.4\\nOperating segments in total\\n164.2 \\n150.7\\n2,093.3 \\n2,301.6\\n1,391.2 \\n1,343.7\\nNon-current Assets\\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\nEurope\\n494.9 \\n470.8\\nEEMEA*\\n217.3 \\n198.0\\nNorth America\\n776.6 \\n769.3\\nLatin America\\n264.0 \\n179.1\\nGreater China\\n87.6 \\n84.1\\nAsia/ Pacific (without Greater China)*\\n83.7 \\n97.7\\nstichd\\n230.3 \\n210.6\\nOperating segments in total\\n2,154.4 \\n2,009.7\\n* Prior year amounts were adjusted due to changes of the structure of the regions EEMEA and Asia/ Pacific (without Greater China)\\n\\n\\n20 \\n \\n \\n \\nProduct\\nSales\\nGross Profit Margin\\n1-6/2024\\n1-6/2023\\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\n€ million\\n€ million\\nFootwear\\n2,278.4 \\n2,336.4\\n46.2%\\n44.2%\\nApparel\\n1,313.7 \\n1,311.0\\n48.2%\\n47.7%\\nAccessories\\n627.5 \\n660.9\\n48.5%\\n46.6%\\nTotal\\n4,219.6 \\n4,308.3\\n47.2%\\n45.7%\\nReconciliations\\nSales\\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\nOperating segments in total\\n4,206.9 \\n4,302.2\\nCentral Units\\n12.7 \\n6.2\\nTotal\\n4,219.6 \\n4,308.3\\nEBIT \\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\nOperating segments in total\\n661.2 \\n734.1\\nCentral Units\\n-146.9 \\n-193.3\\nCentral marketing expenses \\n-238.0 \\n-249.9\\nConsolidation\\n0.0 \\n0.0\\nEBIT\\n276.2 \\n290.9\\nFinancial Result\\n-69.4 \\n-30.8\\nEBT\\n206.7 \\n260.1\\nInvestments\\nDepreciation and Amortisation\\n1-6/2024\\n1-6/2023\\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\n€ million\\n€ million\\nOperating segments in total\\n103.0 \\n125.5\\n164.2 \\n150.7\\nCentral Units\\n13.2 \\n22.4\\n19.9 \\n19.3\\nConsolidation\\n0.0 \\n0.0\\n0.0 \\n0.0\\nTotal\\n116.1 \\n147.9\\n184.2 \\n170.1\\nInventories\\nTrade Receivables \\n(3rd party)\\nNon-current Assets\\n1-6/2024\\n1-6/2023\\n1-6/2024\\n1-6/2023\\n1-6/2024\\n1-6/2023\\n€ million\\n€ million\\n€ million\\n€ million\\n€ million\\n€ million\\nOperating segments in total\\n2,093.3 \\n2,301.6\\n1,391.2 \\n1,343.7\\n2,154.4 \\n2,009.7\\nNot allocated to the operating segments\\n-132.2 \\n-155.7\\n3.6 \\n4.7\\n200.8 \\n217.8\\nTotal\\n1,961.1 \\n2,145.9\\n1,394.7 \\n1,348.4\\n2,355.2 \\n2,227.5\\n\\n\\n21 \\n \\n \\nExplanatory Notes to the Condensed Interim Consolidated Financial Statements (IFRS) as of 30 June 2024 \\n \\n \\n \\nGENERAL REMARKS \\n \\nUnder the “PUMA” brand name, PUMA SE and its \\nsubsidiaries (the “PUMA group”) are engaged in the \\ndevelopment and sales of a broad range of sport and \\nsportlifestyle products including footwear, apparel \\nand accessories. The company’s registered head \\noffice is in Herzogenaurach, Federal Republic of \\nGermany; its responsible court of registration is at \\nFürth (Bavaria). \\n \\n \\nACCOUNTING STANDARDS \\n \\nThe unaudited financial report of PUMA SE and its \\nsubsidiaries (which together form the PUMA group) \\nwas prepared according to IAS 34 “Interim Financial \\nReporting” and should be read in connection with \\nthe consolidated financial statements as of 31 \\nDecember 2023. The information contained in the \\nconsolidated financial statements as of 31 December \\n2023, apply to the financial reports for 2024, unless \\nchanges have been explicitly referred to. \\n \\nIn preparing the half-year financial report, the \\naccounting policies applied and explained for the \\nconsolidated financial statements as of 31 December \\n2023 were applied consistently with the following \\nexception. \\n \\n \\n \\n \\nPUMA is applying the provisions of IFRS 9 for phase \\n3 hedge accounting for the first time as of 1 January \\n2024. Previously, the option of continuing to apply \\nIAS 39 for hedge accounting was exercised. For \\nreasons of materiality, PUMA does not resatate \\ncomparative information for previous periods. \\nConsequently, an adjustment was made to the \\nopening balance sheet as of 1 January 2024. For \\nexisting cash flow hedge relationships, the hedging \\ncost approach was applied retrospectively on a \\nmandatory basis for options held as at the opening \\ndate and voluntarily for the components of forward \\nexchange contracts excluded from the designation. \\nThis resulted in a correction of the opening balance \\nsheet in a high single-digit million euro amount, \\nwhereby the amount was withdrawn from retained \\nearnings and allocated to other comprehensive \\nincome. \\n \\nAs under IAS 39, the PUMA Group now also \\ngenerally designates the spot component of \\ncurrency forwards and the intrinsic value of currency \\nand interest rate options in a hedging relationship \\nunder IFRS 9. The effective cumulative changes in \\nfair value resulting from the spot component or the \\nintrinsic value are initially recognised directly in \\nequity in the cash flow hedge reserve in other \\ncomprehensive income. \\n \\n \\n \\n \\n \\nWhen accounting for currency hedges as cash flow \\nhedges, the fair values of the option contracts as \\nwell as the forward components and the currency \\nbasis spreads of the forward exchange contracts are \\nexcluded from designation in a hedging relationship. \\nFor these components excluded from designation, \\nthe hedging cost approach is applied mandatorily for \\noptions and voluntarily for currency forwards. \\n \\nWhen accounting for interest rate hedges as cash \\nflow hedges, the fair values of the option \\ntransactions are excluded from designation in a \\nhedging relationship. The hedging cost approach is \\nmandatory for these components excluded from \\ndesignation. \\n \\nThe effective cumulative changes in market value of \\nthe non-designated components are recognised as \\nhedging costs in other comprehensive income as a \\nseparate item. \\n \\nIn general, the changes in market value of the \\ncomponents designated in hedging relationships for \\nforeign currency hedges accumulated in other \\ncomprehensive \\nincome \\nare \\nincluded \\nin \\nthe \\nacquisition costs when hedged non-financial assets \\nare initially recognised or, in other cases, are \\nreclassified to sales in the same period as the \\n \\n \\n \\n\\n\\n22 \\n \\n \\n \\n \\n \\nhedged item affects profit or loss. The adjustment \\nof non-financial assets affects profit or loss in the \\nsame way and in the same periods as the affected \\nnon-financial items affect profit or loss. A \\ncorresponding disclosure is made both in the \\nstatement of comprehensive income and in the \\nstatement of changes in equity. In the case of \\ninterest rate hedges, the changes in market value \\naccumulated in accumulated other equity are \\nreclassified to interest expense. The components \\nexcluded from the designation are reclassified from \\nother comprehensive income to the financial result. \\n \\nIn the unusual case for the PUMA Group that \\nderivative financial instruments are not designated \\nas hedging instruments, they continue to be \\nclassified and measured at fair value through profit \\nor loss. \\n \\nThis financial report is partly based on assumptions \\nand estimates which have an impact on the amounts \\nand on the breakdown of the reported assets and \\nliabilities as well as of the revenues and expenses. \\nThe actual values may, in some exceptional cases, \\ndiffer from these assumptions and estimates at a \\nlater date. The corresponding changes if and when \\nthey occur will be considered as soon as the findings \\nare revised. The main uncertainties of estimates and \\ndiscretionary decisions are described in the \\nconsolidated financial statements as of 31 December \\n2023. \\n \\n \\n \\n \\n \\nIn this regard, in line with our sales strategy, the \\nassumptions relating to the allocation of planned \\ncash inflows in the measurement of right-of-use \\nassets for retail stores were adjusted in the first half \\nof 2024 based on better experience. In the first half \\nof 2024, this led to the reversal of an impairment \\nloss recognised in the past and last adjusted as of \\n31 December 2023 in a very low 2-digit million euro \\namount. The reversal was recognised in other \\noperating income and expenses. \\n \\n \\nSEASONAL VARIANCE \\n \\nThe Group's sales are seasonal and result in varying \\nsales and resulting profits throughout the year. Sales \\nand resulting profits tend to be highest in the first \\nand third quarters of the financial year and inventory \\nlevels tend to be lowest. This is respectively due to \\nthe start of the spring/summer and autumn/winter \\ncollections. \\n \\n \\n \\nMANAGEMENT SYSTEM \\n \\nChanges in sales are also influenced by currency \\nexchange effects. This is why we also state any \\nchanges in sales in euros, the reporting currency, \\nadjusted for currency exchange effects in order to \\nprovide information that is relevant to the decision-\\nmaking process when assessing the revenue \\nposition. Currency-adjusted sales are used for \\ncomparison purposes and are based on the values \\nthat would arise if the foreign currencies included in \\nthe consolidated financial statements were not \\nconverted at the average rates for the previous year, \\nbut were instead translated at the corresponding \\naverage rates for the current year. In the case of \\ncountries \\nthat \\nare \\nin \\na \\nhyperinflationary \\nenvironment, the previous year's amounts are not \\nconverted at the reporting date rates of the previous \\nyear, but at those of the current reporting year. As \\na result, currency-adjusted figures are not to be \\nregarded as a substitute or as superior financial \\nindicators, but should instead always be regarded as \\nadditional information. \\n \\n \\n \\n\\n\\n23 \\n \\n \\n \\n \\n \\nWe use the indicator working capital in order to \\nassess the financial position. Working capital is \\nessentially the difference between current assets - \\nincluding in particular inventories and trade \\nreceivables - and current liabilities. Cash and cash \\nequivalents, lease receivables, the positive and \\nnegative market values of derivative financial \\ninstruments and current finance and lease liabilities \\nare not included in working capital. \\n \\nNet current assets include working capital line \\nitems plus current assets and liabilities, which are \\nnot part of the working capital calculation. Current \\nlease liabilities are not part of the net current assets. \\n \\n \\nNOTES TO THE INCOME STATEMENT \\n \\nThe breakdown of the Group's revenues by \\ndistribution channel is as follows: \\n \\n \\n2024 \\n€ million \\n2023 \\n€ million \\nWholesale \\n3,137.7 \\n3,327.4 \\nDirect to Consumer-business (Retail) \\n1,081.9 \\n980.9 \\nTotal \\n4,219.6 \\n4,308.3 \\n \\n \\n \\n \\nEARNINGS PER SHARE \\n \\nEarnings per share are calculated in accordance with \\nIAS 33 by dividing the result for the reporting period \\nby the average number of shares outstanding. The \\naverage number of shares outstanding also includes \\nvested shares not yet issued. Shares held in treasury \\nstock reduce both the number of shares outstanding \\nand the diluted number of shares. Outstanding stock \\noptions from the management incentive programme \\ncan generally lead to a dilution of earnings per \\nshare. \\n \\n \\n2024 \\n2023 \\nEarnings per share \\n€ 0.86 \\n€ 1.15 \\nDiluted earnings per share \\n€ 0.86 \\n€ 1.15 \\n \\n \\n \\nEMPLOYEES \\n \\nThe development of the number of employees on \\nthe basis of full-time equivalents (FTE) is as follows: \\n \\n \\n2024 \\n2023 \\nNumber of employees as of 1 January \\n18,681 \\n18,071 \\nNumber of employees as of 30 June \\n18,420 \\n17,590 \\nAverage number of employees \\n18,292 \\n17,876 \\n \\n \\n \\n \\n \\nDIVIDEND \\n \\nThe Annual General Meeting on 22 May 2024 \\napproved a dividend of € 0.82 per share for the 2023 \\nfinancial year. The total amount of the distribution is \\n€ 122.8 million. The dividend was paid out to the \\nshareholders in the days following the Annual \\nGeneral Meeting. \\n \\n \\nSHAREHOLDERS‘ EQUITY \\n \\nSubscribed Capital \\nThe subscribed capital amounts to € 150,824,640.00 \\non the balance sheet date in accordance with the \\narticles \\nof \\nassociation \\nand \\nis \\ndivided \\ninto \\n150,824,640 no-par value shares with voting rights. \\nThis corresponds to a proportionate amount of \\n€ 1.00 per share. \\n \\nTreasury Stock \\nThe resolution adopted by the Annual General \\nMeeting on 7 May 2020 (adjusted on 5 May 2021) \\nauthorised the company to purchase until 6 May \\n2025 its own shares to a value of up to ten percent \\nof the share capital. \\n \\nBased on the aforementioned authorisation, the \\nManagement Board of PUMA SE approved a share \\nbuyback programme on 29 February 2024. The first \\ntranche provides for the buyback of treasury shares \\nwith a total purchase price of up to € 100 million and \\nbegins in March 2024 for the period until 6 May \\n2025. \\n \\n\\n\\n24 \\n \\n \\n \\n \\n \\n \\nBy resolution of the Annual General Meeting on 22 \\nMay 2024, the existing authorisation was revoked \\nand the company was again authorised to acquire \\ntreasury shares of up to ten percent of the share \\ncapital until 21 May 2029. \\n \\nIn the period from March 2024 up to and including \\n30 June 2024, PUMA SE acquired 700,413 shares in \\nthe first tranche at a total price of € 31,291,030.36 \\n(excluding acquisition costs) and an average \\npurchase price of approximately € 44.68 per share. \\nThis corresponded to 0.46% of the subscribed \\ncapital. \\n \\nThe company may use the repurchased shares for \\nall purposes of the authorisation granted. However, \\nPUMA SE intends to cancel the repurchased shares \\nin the fourth quarter of 2024. \\n \\nFurther information on the repurchase of treasury \\nshares can be found in the following table. \\n \\n \\n \\nRepurchase of Treasury Shares in the \\nFirst Half of 2024 \\n \\nMonth \\nNumber of shares \\nTotal price in € \\nAverage purchase \\nprice per share \\n in € \\nShare of \\nsubscribed capital \\nin € \\nShare of \\nsubscribed capital \\nin % \\nMarch \\n105,713 \\n4,310,868.52 \\n40.78 \\n105,713 \\n0.07% \\nApril \\n88,714 \\n3,706,587.20 \\n41.78 \\n88,714 \\n0.06% \\nMay \\n85,933 \\n4,120,879.78 \\n47.95 \\n85,933 \\n0.06% \\nJune \\n420,053 \\n19,152,694.86 \\n45.60 \\n420,053 \\n0.28% \\nFirst half of 2024 \\nin total \\n700,413 \\n31,291,030.36 \\n44.68 \\n700,413 \\n0.46% \\n \\n \\n \\n \\n \\n\\n\\n25 \\n \\n \\n \\n \\n \\n \\n \\nAt the end of the second quarter, the company held \\na total of 1,596,001 PUMA shares in treasury, which \\ncorresponds to 1.06% of the subscribed capital. \\n \\n \\nDevelopment Number of Shares \\n \\n \\n2024 \\n2023 \\nNumber of shares as of \\n1 January and as of 30 June \\n150,824,640 150,824,640 \\nThereof treasury shares \\n-1,596,001 \\n-1,057,505 \\nShares outstanding as of \\n30 June \\n149,228,639 149,767,135 \\n \\n \\n \\nWeighted average number \\nof shares, outstanding \\n149,786,266 149,801,086 \\nDiluted number of weighted \\naverage shares, outstanding \\n149,829,651 \\n149,814,188 \\n \\n \\n \\n \\n \\n \\n \\nFINANCIAL INSTRUMENTS \\n \\nThe valuation methods of the fair values according \\nto levels 1 to 3 are unchanged and can be found in \\nthe consolidated financial statements as of 31 \\nDecember 2023. \\n \\nFinancial instruments that are measured at fair value \\nin the balance sheet were determined using the \\nfollowing hierarchy: \\n \\nLevel 1: Use of prices quoted on active markets for \\nidentical assets or liabilities. \\n \\nLevel 2: Use of input factors that do not involve the \\nquoted prices stated under Level 1, but can be \\nobserved for the asset or liability either directly (i.e., \\nas price) or indirectly (i.e., derivation of prices). \\n \\n \\n \\n \\n \\n \\n \\nLevel 3: Use of factors for the valuation of the asset \\nor liability that are based on non-observable market \\ndata. \\n \\nThe fair value of the investments held for strategic \\nreasons only refers to equity instruments of the \\ncategory “fair value through OCI” (FVOCI) and is \\ndetermined on the basis of level 1. The market \\nvalues of derivative assets or liabilities were \\ndetermined on the basis of level 2. \\n \\n \\n \\n \\n\\n\\n26 \\n \\n \\n \\nMeasurement\\nCarrying \\namount \\nFair Value\\nCarrying \\namount\\nFair Value\\ncategories\\n2024\\n2024\\nLevel 1\\nLevel 2\\nLevel 3\\n2023\\n2023\\nLevel 1\\nLevel 2\\nLevel 3\\nunder IFRS 9\\n€ million\\n€ million\\n€ million\\n€ million\\nAssets\\nCash and cash equivalents\\n1)AC\\n271.8 \\n307.9\\nTrade receivables\\nAC\\n1,394.7 \\n1,348.4\\nOther current financial assets\\nDerivatives - hedge accounting\\nn.a.\\n58.2 \\n58.2 \\n58.2\\n39.6\\n39.6\\n39.6\\nDerivatives - no hedge accounting\\n2)FVPL\\n25.9 \\n25.9 \\n25.9\\n21.7\\n21.7\\n21.7\\nLease receivables\\nn.a.\\n15.9 \\n4.3\\nRemaining current financial assets\\nAC\\n54.1 \\n26.7\\nOther non-current financial assets\\nDerivatives - hedge accounting\\nn.a.\\n5.7 \\n5.7 \\n5.7\\n3.4\\n3.4\\n3.4\\nInvestments\\n3) FVOCI\\n20.6 \\n20.6 \\n20.6\\n25.4\\n25.4\\n25.4\\nLease receivables\\nn.a.\\n24.0 \\n13.8\\nRemaining non-current financial assets\\nAC\\n31.0 \\n34.4\\nLiabilities\\nCurrent borrowings\\nBank liabilities\\nAC\\n396.6 \\n175.6\\nPromissory note loans\\nAC\\n70.0 \\n68.5 \\n68.5\\n185.0\\n183.4\\n183.4\\nTrade payables\\nAC\\n1,647.9 \\n1,457.3\\nCurrent lease liabilities\\nn.a.\\n213.0 \\n197.1\\nOther current financial liabilities\\nDerivatives - hedge accounting\\nn.a.\\n10.6 \\n10.6 \\n10.6\\n45.7\\n45.7\\n45.7\\nDerivatives - no hedge accounting\\n2)FVPL\\n5.2 \\n5.2 \\n5.2\\n27.6\\n27.6\\n27.6\\nRemaining current financial liabilities\\nAC\\n28.7 \\n35.1\\nNon-current borrowings (promissory note loan)\\nAC\\n357.8 \\n357.2 \\n357.2\\n427.6\\n419.8\\n419.8\\nNon-current lease liabilities\\nn.a.\\n982.2 \\n997.3\\nOther non-current financial liabilities\\nDerivatives - hedge accounting\\nn.a.\\n1.3 \\n1.3 \\n1.3\\n1.5\\n1.5\\n1.5\\nRemaining non-current financial liabilities\\nAC\\n2.2 \\n0.2\\nTotal financial assets at amortised cost\\n1,751.6 \\n1,717.3\\nTotal financial liabilities at amortised cost\\n2,503.2 \\n2,280.6\\nTotal financial assets at fair value through profit or loss\\n25.9 \\n21.7\\nTotal financial liabilities at fair value through profit or loss\\n5.2 \\n27.6\\nTotal financial assets at FVOCI\\n20.6 \\n25.4\\n1) AC = at amortised cost\\n2) FVPL = fair value through PL\\n3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income\\n\\n\\n27 \\n \\n \\n \\nSEGMENT REPORTING \\n \\nSegment reporting is based on geographical areas \\nof responsibility in accordance with the PUMA \\ninternal reporting structure, with the exception of \\nstichd. The geographical area of responsibility \\ncorresponds to the business segment. Sales, the \\noperating \\nresult \\n(EBIT) \\nand \\nother \\nsegment \\ninformation are allocated to the corresponding \\ngeographical areas of responsibility according to the \\nregistered office of the respective Group company. \\n \\nThe internal management reporting includes the \\nfollowing reporting segments: Europe, EEMEA \\n(Eastern Europe, Middle East, Africa, India, South \\nEast Asia, Australia and New Zealand), North \\nAmerica, Latin America, Greater China, Rest of \\nAsia/Pacific (excluding Greater China, South East \\nAsia, Australia and New Zealand) and stichd. These \\nare reported as reportable business segments in \\naccordance with the criteria of IFRS 8. \\n \\nThe reconciliation includes information on assets, \\nliabilities, expenses and income in connection with \\ncentralised functions that do not meet the definition \\nof business segments in IFRS 8. Central expenses \\nand income include in particular central sourcing \\n(incl. hedging), central treasury, central marketing, \\nimpairment losses on non-current assets and other \\nglobal functions of the Company headquarters. \\n \\nThe Company’s main decision-maker is defined as \\nthe entire Management Board of PUMA SE. \\n \\n \\n \\n \\nWith the exception of stichd’s sales of products \\namounting to € 30.2 million (last year: € 20.7 \\nmillion), there are no significant internal sales \\nbetween the business segments, which are \\ntherefore not included in the presentation. \\n \\nThe operating result (EBIT) of the business \\nsegments is defined as gross profit less the \\nattributable other operating expenses plus royalty \\nand commission income and other operating \\nincome, but not considering the costs of the central \\ndepartments and the central marketing expenses. \\n \\nSince PUMA is only active in one business field, the \\nsporting goods industry, products are additionally \\nallocated according to the footwear, apparel and \\naccessories product divisions in accordance with the \\ninternal reporting structure. \\n \\n \\nEVENTS AFTER THE BALANCE SHEET DATE \\n \\nThere were no events after the balance sheet date \\nwhich may have a material effect on the financial \\nsituation and earnings position as of 30 June 2024. \\n \\n \\n \\nResponsibility Statement \\n \\n“To the best of our knowledge, and in accordance \\nwith the applicable reporting principles for interim \\nfinancial reporting, the interim consolidated financial \\nstatements give a true and fair view of the assets, \\nliabilities, financial position and profit or loss of the \\ngroup, and the interim management report of the \\ngroup includes a fair review of the development and \\nperformance of the business and the position of the \\ngroup, together with a description of the principal \\nopportunities and risks associated with the expected \\ndevelopment of the group for the remaining months \\nof the financial year.” \\n \\n \\nHerzogenaurach, 7 August 2024 \\n \\n \\nThe Management Board of PUMA SE \\n \\n \\n \\n\\n\\n28 \\n \\nManagement Board \\n \\nArne Freundt \\n(CEO, Chief Executive Officer) \\n \\nAnne-Laure Descours \\n(CSO, Chief Sourcing Officer) \\n \\nMaria Valdes \\n(CPO, Chief Product Officer) \\n \\nHubert Hinterseher \\n(CFO, Chief Financial Officer) \\nSupervisory Board \\n \\nHéloïse Temple-Boyer \\n(Chair) \\n \\nJean-Marc Duplaix \\n(Deputy Chairman) \\n \\nFiona May \\n \\nHarsh Saini (since 22 May 2024) \\n \\nRoland Krüger (since 22 May 2024) \\n \\nThore Ohlsson (until 22 May 2024) \\n(Deputy Chairman) \\n \\nMartin Koeppel \\n(Employees‘ Representative) \\n \\nBernd Illig \\n(Employees‘ Representative) \\n \\n \\n \\n\\n\\n29 \\n \\nFinancial Calendar FY 2024 \\n \\n27 February 2024 \\nFinancial Results FY 2023 \\n \\n8 May 2024 \\nQuarterly Statement Q1 2024 \\n \\n22 May 2024 \\nAnnual General Meeting \\n \\n7 August 2024 \\nHalf-Year Financial Report 2024 \\n \\n6 November 2024 \\nQuarterly Statement Q3 2024 \\n \\n \\nThe financial releases and other financial information are available on the \\nInternet at „about.puma.com“. \\n \\n \\nPublished by \\n \\nPUMA SE \\nPUMA Way 1 \\nD-91074 Herzogenaurach \\n \\nTel.: \\n+49 (0)9132 81-0 \\nemail: \\ninvestor-relations@puma.com \\nInternet: \\nhttp://www.puma.com \\n \\n \\n \\n \\nNotes relating to forward-looking statements: \\nThis document contains statements about the future business development and strategic direction of the Company. The forward-looking statements are based on management's current \\nexpectations and assumptions. They are subject to certain risks and fluctuations as described in other publications, in particular in the risk and opportunities management section of the \\ncombined management report. If these expectations and assumptions do not apply or if unforeseen risks arise, the actual course of business may differ significantly from the expected \\ndevelopments. We therefore assume no liability for the accuracy of these forecasts. \\nPUMA \\n \\nPUMA is one of the world’s leading sports brands, designing, developing, selling and marketing footwear, apparel and accessories. For more than 75 years, PUMA has relentlessly pushed sport and culture forward \\nby creating fast products for the world’s fastest athletes. PUMA offers performance and sport-inspired lifestyle products in categories such as Football, Running and Training, Basketball, Golf and Motorsports. It \\ncollaborates with renowned designers and brands to bring sport influences into street culture and fashion. The PUMA Group owns the brands PUMA, Cobra Golf and stichd. The company distributes its products in \\nmore than 120 countries, employs about 21,000 people worldwide and is headquartered in Herzogenaurach/Germany. \\nFor more information, please visit https://about.puma.com.\",\"difficulty\":\"easy\",\"domain\":\"Multi-Document QA\",\"length\":\"long\",\"question\":\"If PUMA wants to achieve the EBIT targets outlined in the latest 2024 outlook, what percentage increase must be achieved in the second half of 2024 compared to the second half of 2023?（Results are rounded to the nearest integer）\",\"sub_domain\":\"Financial\"}","display_format":"text","language":"","answer_status":"published","assets":[],"source_url":"https://huggingface.co/datasets/zai-org/LongBench-v2","history":"initial import","indexing_mode":"noindex","subproblems":[],"grids":[]}