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LongBench v2 / 66f61d7dbb02136c067c1802 / If PUMA wants to achieve the EBIT targets outlined in the latest 2024 outlook,…
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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）
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Annual Report 2023
RIHANNA
TABLE OF CONTENTS
4
5
8
15
30
31
34
35
36
42
48
49
TO OUR SHAREHOLDERS
CEO-Letter
Report by the Supervisory Board
OUR PEOPLE
SUSTAINABILITY
Foreword Anne-Laure Descours, CSO Awards
and Recognitions
PUMA’s FOREVER.BETTER. Sustainability Strategy
Sustainability Organisation and Governance
Structure
Most Material Aspects
Scope of the Report
Due Diligence and Risk Assessment Human
Rights
53
Fair Income
79
Health and Safety
89
Environment
94
Climate
104
Chemicals
133
Water and Air
142
Plastics and the Oceans
153
Circularity
156
Products
165
Biodiversity
177
Environmental Key Performance Data
184
Reporting in accordance with the
EU Taxonomy Regulation
188
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GRI content
198
KPMG Assurance Statement
205
PUMA Annual Report 2023
Table of Contents
2
MONDO DUPLANTIS
COMBINED MANAGEMENT
REPORT OF PUMA SE FOR
THE FINANCIAL YEAR 2023
208
Overview 2023
210
PUMA Group essential information
214
Commercial activities and organisational structure 214
Targets and strategy
215
Product development and design
217
Sourcing
220
Employees
222
Management system
225
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Economic report
228
General economic conditions
228
Sales development
229
Results of operations
233
Development of the segments
237
Dividends
238
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Statement regarding the business development
and the overall situation of the Group
245
Comments on the Financial Statements of
PUMA SE in accordance with the German
Commercial Code (HGB)
247
Information concerning takeovers
251
Corporate governance statement in accordance
with section 289f and 315d HGB
254
Risk and Opportunity Report
255
Outlook report
272
CONSOLIDATED FINANCIAL
STATEMENTS
274
Consolidated Statement of Financial Position
275
Consolidated Income Statement
277
Consolidated Statement of Comprehensive Income 278
279
Consolidated Statement of Cash Flows
Statement of Changes in Equity
281
Notes to the Consolidated Financial Statements
282
Notes to the Consolidated Statement of
Financial Position
302
Notes to the Consolidated Income Statement
351
Additional information
357
Declaration by the Legal Representatives
372
Independent Auditor‘s Report
373
ADDITIONAL INFORMATION
382
The PUMA Share
383
PUMA Year-on-Year Comparison
385
PUMA Group Development
387
Imprint
390
PUMA Annual Report 2023
3
Table of Contents
LAMELO BALL
TO OUR SHAREHOLDERS
5
CEO-Letter
Report by the Supervisory Board
8
PUMA Annual Report 2023
To our Shareholders
4
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
5
CEO-LETTER
DEAR SHAREHOLDERS,
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↗ ARNE FREUNDT
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PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
6
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PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
7
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PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
Ң
REPORT BY THE SUPERVISORY BOARD
DEAR SHAREHOLDERS,
In a transition year for our industry, characterized by a challenging market environment, geopolitical con-
flict, macroeconomic headwinds and currency volatility, the PUMA Group sustained its strong momentum,
gained market shares and delivered a profitability fully in line with its outlook.
$UQHFUHXQGWZKRWRRNRYHUDV&KLHIE[HFXWLYHOIILFHULQODWHҜҚҜҜWRJHWKHUZLWK0DULDVDOGHVDV&KLHI
Product Officer, Anne-Laure Descours as Chief Sourcing Officer and Hubert Hinterseher as Chief Financial
Officer, started to build a foundation for the future growth of the company with the strategic priorities of ele-
vating the brand, increasing product excellence, and improving the distribution quality. Within that strategic
framework, PUMA put a special focus on the important US and China markets. As the Supervisory Board,
we are convinced that these are the right priorities to ensure not only sustainable but also more profitable
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right track. We are particularly pleased to see that the Management Board acts as a team and that this team
spirit not only motivates employees but is also recognized and appreciated by external stakeholders. We are
also proud of the progress PUMA has made on its sustainability journey. Making our supply chains fair and
sustainable has always been a matter close to PUMA's heart and we want to remain one of the leading
brands in the industry. The topic will also have a strong influence on the work of the Supervisory Board in
the future, which is why we are striving for further professionalization in this area.
Another focus of the Supervisory Board's work was resolving the unfavourable YRWLQJUHVXOWVDWWKHҜҚҜҝ$Q-
nual General Meeting and deriving follow-XSPHDVXUHV.FRUҜҚҜҞWKH6XSHUYLVRU\BRDUGVHWLWVHOIWKHJRDO
of further professionalizing its own work and strengthening the diversity concept of the Supervisory Board.
Especially, increasing independence at the Supervisory Board is our top priority going forward. The Supervi-
sory Board decided to actively engage with some of the Company’s largest investors and conduct a Govern-
ance Roadshow for the first time. In these conversations, I received valuable feedback which will shape the
↗ HÉLOÏSE TEMPLE-BOYER
CHAIR OF THE
SUPERVISORY BOARD
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
ң
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that the number of Supervisory Board members will be increased from the current six to seven. After Thore
Ohlsson has handed over the chair of the Audit Committee to Jean-Marc Duplaix and ensured a smooth
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General Meeting. Jean-Marc Duplaix is considered independent by the Supervisory Board because his func-
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Annual Financial Report. Until Thore’s resignation becomes effective, he continues to contribute his exten-
sive knowledge and many years of experience as a member of the Audit Committee for the benefit of PUMA
with great commitment. As a consequence, there will be two new vacancies on the Supervisory Board that
need to be filled. To find the right candidates, the Supervisory Board has assigned the search to a leading
global executive search consulting company. The search will focus on profiles with expertise in the areas of
sustainability and retail and will comply with the required independence by investors. With this step, the Su-
pervisory Board aims to strengthen the structure of the Board, both in terms of skills and independence. A
particular effort will be made in the next years to ensure that the chair of the Personnel Committee, who is
in charge of remuneration topics, of the Nominating Committee and of the Audit Committee as well as the
majority of the members of those Committees, are independent.
At the last Annual General Meeting, the majority of our shareholders present voted against the proposed
remuneration report. We have taken these voting results on the remuneration report very seriously and I am
addressing them in the introduction to the remuneration report (see https://about.puma.com/en under In-
vestor Relations/Corporate Governance). Following the feedback that emerged during the engagement with
the investors regarding the remuneration system, we are taking steps to review the remuneration system in
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General Meeting for approval.
Although the current share price performance is not in line with our and your expectations, I am convinced
that it does neither reflect the actual value of our company nor the good operating performance. The Super-
visory Board and the Management Board anticipate that the current challenging market environment is
temporary and are confident that the long-term prospects of the company based on its strong brand, strong
product, strong partnerships and strong team will lead to a sustainable growth.
The Supervisory Board would like to thank PUMA’s Management Board, Leadership Team and the entire
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SUPERVISORY BOARD MEETINGS
The meetings of the Supervisory Board and its committees generally take place in-person with the option of
participation via a video link. Meetings are held exclusively as video conferences in exceptional circum-
VWDQFHV.,QҜҚҜҝWKH6XSHUYLVRU\BRDUGFRQYHQHGWRIRXUUHJXODUPeetings. In these meetings, it advised the
Management Board on the management of the company and continuously supervised its conduct of busi-
ness. It discussed with the Management Board on the Company’s business policies, all relevant aspects of
corporate development and corporate planning, the Company’s economic situation, including its net assets,
financial position and results of operations, the adequacy of capital resources and all key decisions for the
Group. The Management Board informed the Supervisory Board regularly, comprehensively, and in a timely
manner in written and verbal form about the implementation of all decisions and about all major business
transactions. The members of the Management Board took part in meetings of the Supervisory Board and
its committees; the Supervisory Board also met regularly without the Management Board.
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new Supervisory Board by the Annual General Meeting. Several matters were decided via circular resolu-
tions using electronic means of communication. All members participated in drawing up the resolutions.
Whenever necessary, representatives of the shareholders and employees held separate preliminary discus-
sions prior to the meetings.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҚ
Plenary Supervisory Board
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Héloïse Temple-Boyer
5/5
100
Thore Ohlsson
5/5
100
Jean-François Palus
(until 24 May, 2023)
2/2
100
Jean-Marc Duplaix (since 24 May, 2023)
3/3
100
Fiona May
5/5
100
Martin Köppel
5/5
100
Bernd Illig
5/5
100
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as well.
The Supervisory Board discussed in detail all of the Company’s key business transactions, based on the re-
ports by the Management Board and the Committees, and presented its own ideas. The Management Board
provided the Supervisory Board with detailed information on any deviations of the business performance
from the budgeted figures, both in writing and orally. The Supervisory Board verified these explanations us-
ing the supporting documents, which were always submitted in appropriate time before the meetings. The
Supervisory Board was involved in all key decisions at an early stage. In addition, the Chair of the Supervi-
sory Board maintained, and continues to maintain, regular verbal or written contact with the CEO and keeps
herself informed of all major developments. Overall, these discussions did not give any indication that the
Management Board was managing the Group in anything other than a lawful and proper manner.
The Supervisory Board members took part, on their own initiative, in the educational and training measures
necessary for the performance of their duties. The Company supports the Supervisory Board members in
their training activities, for example by having the Legal Department regularly prepare changes in the legal
IUDPHZRUNIRUWKH6XSHUYLVRU\BRDUGDQGUHSRUWDERXWWKHPLQWKHPHHWLQJV.,QҜҚҜҝWKH6XSHUYLVRU\BRDUG
received an update on the German Supply Chain Akt (“Lieferkettensorgfaltspflichtengesetz”, LkSG) and the
Corporate Sustainability Reporting Directive (CSRD). There is an established onboarding process to familiar-
ize new Supervisory Board members with the PUMA business model, group structures and special topics.
MAIN ADVISORY FOCUS
,QWKHҜҚҜҝILQDQFLDO\HDUWKHPDLQIRFXVZDVRQWKHIROORZLQJLVVXHV UHYLHZDQGDSSURYDORIWKHҜҚҜҜFRQ-
VROLGDWHGDQGDQQXDOILQDQFLDOVWDWHPHQWVDQGWKHҜҚҜҜQRQ-financial report, dividend proposal, setting the
agenda for the Annual General Meeting on 0D\ҜҞҜҚҜҝUHDOL]DWLRQRISHUVRQQHODGMXVWPHQWVRQWKH0DQ-
DJHPHQWBRDUG LQSDUWLFXODUDSSRLQWPHQWRI0DULDVDOGHVDVPHPEHURIWKH0DQDJHPHQWBRDUG &KLHI
3URGXFWOIILFHU &3O IURP-DQXDU\қҜҚҜҝDQGH[WHQVLRQRIWKHFRQWUDFWRI+XEHUW+LQWHUVHKHUDs Chief
Financial Officer (CFO)), follow-up of the new strategy of the Management Board regarding elevating the
brand and growing the market share in the US and China, re-organization of the marketing organization,
current business and revenue development, markets and trends, financial position of the Group, corporate
DQGEXGJHWSODQQLQJҜҚҜҞDVZHOODVPHGLXP-term planning, including investments, further improvement of
the compliance management and the risk management and internal control system as well as material liti-
gation in the Group. In addition, the Supervisory Board regularly dealt with the development and implemen-
tation of sustainability topics.
As every year, the Personnel Committee and the Supervisory Board determined the degree of achievement
RIWKHWDUJHWVIRUWKHLQGLYLGXDO0DQDJHPHQWBRDUGPHPEHUVZLWKUHJDUGWRҜҚҜҜ.TKH6XSHUYLVRU\BRDUG
decided on the individual targets for the variable MDQDJHPHQWBRDUGUHPXQHUDWLRQIRUWKHҜҚҜҝILQDQFLDO
year upon recommendation of the Personnel Committee.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
ққ
CONFLICTS OF INTEREST
The members of the Supervisory Board are required to disclose to its Chair any conflicts of interest without
undue delay. In the past year, no such disclosures were made.
COMMITTEES
TKH6XSHUYLVRU\BRDUGKDVHVWDEOLVKHGIRXUFRPPLWWHHVWRSHUIRUPLWVGXWLHV the Personnel Committee,
the Audit Committee, the Nominating Committee and the Sustainability Committee. The Personnel Commit-
tee, the Audit Committee and the Sustainability Committee each comprise two shareholder representatives
and one employee representative. The Nominating Committee is composed only of shareholder representa-
tives. The composition of the committees can be found in the notes to the consolidated financial statements.
The Supervisory Board receives regular reports on their work.
PERSONNEL COMMITTEE
The Personnel Committee has the task of preparing the conclusion and amendment of employment con-
tracts with the members of the Management Board, reviewing the remuneration report and establishing
policies for human resources and personnel development. It mHWWRRQHUHJXODUPHHWLQJLQҜҚҜҝGHFLGHGRQ
WKHWDUJHWDFKLHYHPHQWIRUWKHLQGLYLGXDO0DQDJHPHQWBRDUGPHPEHUVDQGVHWWKHWDUJHWVIRUҜҚҜҝ.,QDGGL-
WLRQWKHDSSURYDORIWKH/T,SURJUDPVҜҚҜҝZHUHWKHIRFXVRIWKHGLVFXVVLRQV.&RUUHVSRQGLQJUHFRPPHQGD-
tions for resolutions were made to the Supervisory Board.
Personnel Committee
Attendance at meetings
Attendance in %
Héloïse Temple-Boyer (Chair)
1/1
100
Fiona May
1/1
100
Martin Köppel
1/1
100
AUDIT COMMITTEE
TKH$XGLW&RPPLWWHHKHOGIRXUUHJXODUPHHWLQJVLQWKHILQDQFLDO\HDUҜҚҜҝ.,QSDUWLFXODUWKH$XGLW&RPPLW-
tee is responsible for the review of the accounting, particularly comprising the consolidated financial state-
ments and the group management report, group half year report, interim financial information and the sin-
gle entity financial statements in accordance with the German Commercial Code (HGB). It is furthermore
responsible for monitoring the accounting process, the effectiveness of the internal control system, the risk
management system, the internal audit system, compliance and the statutory audit of the financial state-
ments, with particular regard to the process of selecting an auditor. The Audit Committee is also responsi-
ble for conducting the selection process of the auditor. In addition, the Audit Committee monitors the inde-
pendence of the auditor and ensures that the non-audit services of the auditor commissioned by the Man-
agement Board do not give rise to any grounds for disqualification or partiality or any threat to independ-
ence. The Audit Committee issues the audit mandate on behalf of the Supervisory Board to the auditor
elected by the general meeting, determines the audit areas of the audit, monitors the quality of the audit
and the services additionally provided by the auditor and agrees the fee with the auditor. Heads of the corpo-
rate functions were also available for reports and questions on individual agenda items at the committee
meetings. The Audit Committee meets regularly with the auditor, also without the Management Board.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҜ
Audit Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Thore Ohlsson
(Chair until 24 May, 2023)
4//4
100
Héloïse Temple-Boyer
(until 24 May, 2023)
2/2
100
Jean-Marc Duplaix
(since 24 May, 2023, Chair)
2/2
100
Bernd Illig
4/4
100
NOMINATING COMMITTEE
The Nominating Committee has the task of proposing suitable candidates to the Supervisory Board for its
election proposals to the Annual General Meeting. It held two meetings in the last financial year.
Nominating Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Héloïse Temple-Boyer (Chair)
2/2
100
Fiona May
2/2
100
Jean-François Palus
(until 24 May, 2023)
1/1
100
Jean-Marc Duplaix (since 24 May, 2023)
1/1
100
,QҜҚҜҞWKHPDLQIRFXVRIWKH1RPLQDWLQJ&RPPLWWHHVΝVZRUNZLOOOLHRQWKHVXFFHVVLRQSODQQLQJIRUTKRUH
Ohlsson and on finding the right candidate for the expansion of the Supervisory Board.
SUSTAINABILITY COMMITTEE
TKH6XVWDLQDELOLW\&RPPLWWHHPHWRQFHLQWKHҜҚҜҝILQDQFLDO\HDUWRGLVFXVVWKHFRPSDQ\
VVXVWDLQDELOLW\
strategies. The focus was emphasized on the evaluation of the "Conference of the People," sustainability-
related projects within the company and relevant, upcoming legislative projects. The Sustainability Commit-
tee consists of three members.
Sustainability Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Fiona May (Chair)
1/1
100
Héloïse Temple-Boyer
1/1
100
Martin Köppel
1/1
100
CORPORATE GOVERNANCE
$VLQSUHYLRXV\HDUVWKH6XSHUYLVRU\BRDUGDGGUHVVHGFXUUHQWGHYHORSPHQWVLQWKHILQDQFLDO\HDUҜҚҜҝUH-
JDUGLQJWKH*HUPDQ&RUSRUDWH*RYHUQDQFH&RGHLQWKHYHUVLRQGDWHG$SULOҜҢҜҚҜҜ HIIHFWLYHDVRIҜҡ-XQH
ҜҚҜҜ *&*& .TKH*&*&FRQWDLQVHVVHQWLDOVWDWutory regulations and recommendations for the manage-
ment and supervision of listed companies and standards for responsible corporate governance. The corpo-
rate governance standards have long been a part of the corporate routine.
3XUVXDQWWR3ULQFLSOHҜҝRIWKH*&*&WKH6XSHUYLVRU\BRDUGUHSRUWVRQFRUSRUDWHJRYHUQDQFHLQWKH&RUSR-
rate Governance Statement. The Company satisfies all requirements of the GCGC, to the extent required by
LW.TKH6WDWHPHQWRI&RPSOLDQFHRI1RYHPEHUңҜҚҜҝLVDYDLODEOHWRRXUVKDUHKROGHUVDWDQ\WLPHRQWKH
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҝ
Company’s website under https://about.PUMA.com/en/investor-relations/corporate-governance at
STATEMENT OF COMPLIANCE.
ANNUAL FINANCIAL STATEMENTS ADOPTED
The annual financial statements for PUMA SE prepared by the Management Board in accordance with the
German Commercial Code (Handelsgesetzbuch/HGB), the consolidated financial statements for PUMA
JURXSSUHSDUHGLQDFFRUGDQFHZLWK6HFWLRQҝқҟD+*BRQWKHEDVis of the International Financial Reporting
Standards (IFRS) and the combined management report for PUMA SE and the PUMA Group, each for the
ILQDQFLDO\HDUҜҚҜҝKDYHEHHQDXGLWHGE\WKHVWDWXWRU\DXGLWRUV.30*$*:LUWVFKDIWVSU¾IXQJVJHVHOOVFKDIW
NuremberJZKRZHUHDSSRLQWHGDWWKH$QQXDO*HQHUDO0HHWLQJRQ0D\ҜҞҜҚҜҝDQGFRPPLVVLRQHGE\WKH
Supervisory Board to audit the annual financial statements and the consolidated financial statements and
have been given an unqualified auditor’s opinion. The lead auditor on the KPMG team is Matthias Koeplin
DQGKHKDVEHHQDVVLJQHGWKHUROHVLQFHҜҚҜҜ.380$KDVQRWSDLGQRQ-audit related fees in excess of audit
related fees to its auditor.
In their report, the statutory auditors conclude that PUMA’s institutionalized risk management system, in
DFFRUGDQFHZLWK6HFWLRQңқ Ҝ RIWKH*HUPDQ6WRFN&RUSRUDWLRQ$FW $NWLHQJHVHW]$NW* LVFDSDEOHRIGH-
tecting at an early stage and countering any developments that might jeopardize the continuity of the Com-
pany as a going concern. The Supervisory Board has been updated by the Management Board regularly on
all relevant risks in this regard, in particular its assessments of market and procurement risks, financial
risks (including currency risks) and organizational risks.
The accounting records, the audit reports from the statutory auditors and the Management Board’s and Su-
pervisory Board’s recommendation on the appropriation of net profit were made available to all members of
the Supervisory Board in a timely manner. At thHPHHWLQJRIWKH$XGLW&RPPLWWHHRQFHEUXDU\ҜҠҜҚҜҞDQG
at the subsequent Supervisory Board meeting held on the same day, the statutory auditors reported on the
key results of their audit and discussed them in detail with the Management Board and the members of the
Supervisory Board. No discrepancies were detected.
The Supervisory Board reviewed in detail the annual financial statements, the combined management re-
port for PUMA SE and the PUMA Group, the Management Board’s and the Supervisory Board’s recommen-
dation on the appropriation of net profit and the consolidated financial statements and raised no objections.
In accordance with the recommendation of the Audit Committee, the Supervisory Board agreed with the re-
sults of the audit of both statements and approved the annual financial statements of PUMA SE and the con-
VROLGDWHGILQDQFLDOVWDWHPHQWVIRUWKHILQDQFLDO\HDUҜҚҜҝ.TKHҜҚҜҝDQQXDOILQDQFLDOVWDWHPHQWVKDYHWKXV
been adopted.
The Management Board and the Supervisory Board resolved to propose to the Annual General Meeting a
GLVWULEXWLRQRIDGLYLGHQGRIυҚ.ҢҜSHUGLYLGHQGHQWLWOHGVKDUHWRWKHVKDUHKROGHUVIRUWKHILQDQFLDO\HDU
ҜҚҜҝ.,QWKLVFRQWH[WWKHOLTXLGLW\VLWXDWLRQRI the Company, the financing and the effects on the capital mar-
ket were discussed. The payout is conditional to an overall sound macroeconomic environment. A total
DPRXQWRIDURXQGυқҜҜ.ңPLOOLRQZLOOEHSDLGRXWLQGLYLGHQGVIURP380$6EΝVUHWDLQHGHDUQLQgs. The re-
PDLQLQJUHWDLQHGHDUQLQJVRIDURXQGυҝҠҝ.ҠPLOOLRQZLOOEHFDUULHGIRUZDUG.
,QLWVPHHWLQJRQFHEUXDU\ҜҠҜҚҜҞWKH6XSHUYLVRU\BRDUGDOVRDSSURYHGWKHQRQ-financial report in accord-
DQFHZLWKiiҝқҟFLQFRQMXQFWLRQZLWKiiҜҢңFWRҜҢңHRIWKH*HUPDQ&RPPHUFLDO&RGH +*B .
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҞ
THANKS
We would like to express our gratitude and recognition to the Management Board, the management teams
at the Group companies, the Works Council and all our employees for their hard work and their outstanding
FRRSHUDWLRQLQҜҚҜҝ.:HORRNIRUZDUGWRҜҚҜҞD\ear of sports in which PUMA will launch its largest-ever
brand campaign and come to the market with an impressive portfolio of new and innovative products.
Herzogenaurach, ҜҠFHEUXDU\ҜҚҜҞ
On behalf of the Supervisory Board
Héloïse Temple-Boyer
Chair
PUMA Annual Report 2023
↗ Our People
15
OUR PEOPLE
PUMA Annual Report 2023
↗ Our People
16
OUR PEOPLE*
Our PUMA Family is the key to our success. Our people strategy is the foundation of PUMA’s unique work
environment and corporate culture, which helps us attract the world’s best talent and shapes the future
success of the company. Our people strategy is centred on three main pillars: People First, Sustainable
People Practices and Digitalisation.
People First means understanding employees' needs, values, and potential of our employees and putting
them at the centre of our decision making. That helps us create an inclusive culture that respects diversity,
promotes health and well-being, and encourages personal and professional growth.
Sustainable people practices create a workplace culture that prioritises employee health and happiness,
diversity, and inclusivity, and offers ample opportunities for career growth. Our sustainable people practices
are central to building a resilient organisation. By thinking ahead and equipping our employees with the
future skills and leadership qualities necessary, we ensure the long-term success of PUMA.
Digital tools in Human Resources improve work experience and help us stay competitive and agile in the
fast-changing business landscape. By using digital technology, we are improving efficiency, data-driven
decision-making, candidate and employee experiences. We deploy easy-to-use digital tools that enhance
collaboration and productivity and offer digital literacy programs to ensure all employees are equipped to
thrive in a digital environment.
Putting the human element first ensures that our pursuit of environmental and technological excellence is
responsible and rewarding. The result is a sustainable future where innovation and well-being go hand in hand.
PUMA LIFE CYCLE
RECRUITING/ONBOARDING
People are our most valuable asset. We adopt a data-driven approach to talent acquisition to ensure that
PUMA remains the employer of choice in the minds of external applicants. We analyse previous trends in
recruitment, identify the primary source of talent inflow, and tailor our talent acquisition approach accordingly.
To complement our goal, we employ digital platforms, social media, and the PUMA career website to
engage with talent around the world.
To ensure a continuous talent pipeline, we cultivate links with universities through career events, company
lectures and master classes. We also regularly participate in external professional events, panel
discussions, and seminars to build a solid talent network.
Over the past two years, we have fostered a deeper relationship with candidates by offering them the chance
to participate in unique PUMA digital events. These events allowed candidates to speak with top officials at
PUMA and offer suggestions on how to improve the brand.
Our onboarding process should not only provide the new starters with a great first day experience but also
guarantee that they will work effectively and feel a member of the PUMA family as soon as possible. This
effective onboarding serves as the foundation for a successful employee journey, aligning our new team
members with our culture, values, and mission. It ensures compliance, clarifies roles, and provides
essential support, enabling a seamless integration. This process not only fosters productivity and teamwork
but also enhances our employees' sense of belonging and growth within PUMA.
*
Contains also all information related to company culture.
PUMA Annual Report 2023
↗ Our People
17
LEARNING AND DEVELOPMENT
Talent management
We believe that each employee is in charge of their own personal development. At PUMA, we foster a culture
centred around feedback and results, coupled with a self-directed learning mindset through an integrated
talent management approach. At least annually, we evaluate of all our employees, assessing their
performance and potential. Personal development plans are crafted, and we identify the right individuals to
prepare them for shaping the future of PUMA.
Global talent conferences are held to assess the entire PUMA workforce, including all levels of
management. Criteria such as individual performance, competencies, potential, learning agility, ambition,
and mobility are used for evaluation. A targeted analysis of our employees' profiles allows us to align
internal talent with upcoming career opportunities. This helps us build a strong succession pipeline and
address future competency needs.
Our unwavering focus on internal talent mobility provides our employees with opportunities for professional
growth and cross-cultural experience, resulting in an enhanced learning curve on both professional and
personal levels. Utilizing digital platforms, such as Workday's “Job Alert” and “Talent Marketplace” feature,
our internal talents can easily find job opportunities.
For instance, in 2023, a substantial number of internal moves, including relocations abroad, were reported.
Overall, we successfully filled three out of four vacant key positions worldwide through internal promotions
or horizontal transfers, with 60% of open positions filled by internal candidates. This accomplishment
confirms the effectiveness of our talent and development strategy.
Our overarching goal is to minimize voluntary turnover and maintain a permanent employment rate of over
80% for our workforce. In 2023, 92% of our employees worldwide held permanent employment contracts,
and over 31% were governed by collective agreements. The turnover rate is intricately linked to the share of
retail business in respective markets and regions, with the employee-induced turnover rate standing at 24%
(7% for non-retail employees and 39% for retail employees). The overall turnover rate, including retail
employees, was 32% shows a decrease of 3% compared to last year. At the end of 2023, 22% of our
employees were working part-time.
↗ T.01 EMPLOYMENT CONTRACTS (PERMANENT/FIXED TERM)
Permanent
Fixed term
Region
Total
Total
Female
Male
Diverse
Total
Female
Male
Diverse
Europe
4,982
4,259
2,206
2,051
2
723
419
304
0
EEMEA
3,876
3,775
1,391
2,384
0
101
40
61
0
North America
3,788
3,203
1,640
1,552
11
585
266
318
1
Latin America
3,775
3,773
1,666
2,106
1
2
0
2
0
Asia/Pacific
4,743
4,359
2,667
1,688
4
384
215
168
1
Total
21,164
19,369
9,570
9,781
18
1,795
940
853
2
PUMA Annual Report 2023
↗ Our People
18
↗ T.02 EMPLOYMENT CONTRACTS (PERMANENT/FIXED TERM) (IN %)
Employment contracts
Female
Male
Diverse
Total
Full-time
47
53
0
100
Part-time
58
42
0.2
100
Development
Our employees’ ongoing professional and personal development ensures they have the necessary skills to
support internal growth and drive the company forward.
Strategic workforce planning and the use of Workday help us to identify skill gaps and determine the
capabilities of our employees. We provide a wide choice of training and development options, including
courses, workshops, and coaching – both online and offline, standardised or tailored to specific needs. We
offer a cutting-edge learning environment for both internal and external training classes, built into the
Workday Human Capital Management system. This is based on the idea of lifelong learning, which fosters a
self-driven learning culture.
In 2023, 18,527 employees worldwide attended 160,481 hours of training and workshops. This averaged 9
hours and € 226 per FTE for training activities. Compared to 2023, the average number of training hours per
FTE increased by 2 hours. We achieved this by a proactive learner engagement strategy, including fun
activations on various topics, a gamified approach, and internal learning competitions. The most engaged
learners worldwide were rewarded quarterly with the “Top Learner Award”. Based on this strategy, PUMA
was nominated for an “eLearning Journal” Award 2024 in the “Learner Engagement” category.
LinkedIn Learning and GoodHabitz offer more than 23,000 online training courses in up to 13 languages for
personal and professional growth. Additionally, PUMA employees actively generate product-specific
learning content.
Employees around the globe can access the language learning platform on any device. Speaking a second
language helps people understand each other, makes connections, and increases diversity. It also enhances
our internal mobility. While the global focus is on English, people can acquire or perfect any other language
for business or travel.
Our entire staff, including retail employees, can now learn a new language online, at their own pace and in a
way that fits their needs. By offering weekly language training in an office classroom, PUMA helps
employees integrate locally faster by eliminating the need to drive to external courses after work.
To support our global workforce during challenging times, we focused on mental health, resilience,
mindfulness, and emotional stability in 2023. All our current classroom training is based on hybrid concepts
to ensure that our employees can learn in the way that is best for them.
We continue to provide our digital agile coach programme to workers globally to establish an agile learning
organisation and increase agile working practises. Since its launch, approximately 190 employees around
the globe have completed the programme by 2023. We focus on need-based training at three levels – Agile
Rookie, Agile Facilitator, and Agile Coach – to equip the right people with the right skills. Various business
units are actively using agile ideas and frameworks such as Scrum, Kanban, Design Thinking, and OKRs, in
their daily operations and strategic planning.
PUMA Annual Report 2023
↗ Our People
19
Leadership Training ILP/ILP²/PLE
Our leaders are vital for PUMA becoming FOREVER.FASTER. We highly value their skills and leadership
expertise in mastering complex challenges in a volatile world while achieving our goals of excellence.
Our International Leadership Programme (ILP & ILP²) provides staff with essential competencies and
promotes a shared knowledge of our leadership culture. PUMA leaders receive comprehensive training and
coaching, including interactive learning, roleplay, best-practice learning, and joint projects. Mindful
leadership and agile work are emphasised. The programme's modular design allows managers to apply
their newly acquired knowledge between seminars. 191 global leaders took part in this state of the art
programme.
We continued to promote healthy and sustainable leadership in 2023 with the PUMA Leadership Expedition
programme. It is designed to teach leaders how to lead well in a VUCA world marked by volatility,
uncertainty, complexity, and ambiguity. Self-driven learning, nugget-learning, learning sprints, and peer-
learning underpin this virtual, easily accessible course.
Our leaders can choose what, when, and how to learn from over 130 one-hour learning nuggets with a
balanced mix of trainer-led virtual sessions and self-directed learning. To maximise learning and transfer
success, the programme is centred on Learning Sprints, which include trainer-led sessions, self-driven
nugget learning, retrospective sessions with coaches, and group assignments. 67 talents completed the
programme successfully in 2023.
First-time managers get PUMA-tailored training “From employee to manager” to prepare them for their
new role and ensure a common concept of leadership at PUMA. This programme includes training modules
and individual coaching as well as online pre- and post-learning. Classroom trainings provide new
executives with recruiting and appraisal skills.
Speed Up/Speed Up²
Retaining talent and speeding up their progress is important for the success of our business. Two selective
development programmes, Speed Up and Speed Up², are designed to help us reach this goal by bringing out
the best in our people.
An intensive curriculum of cross-functional projects and tasks, coaching, mentoring, and specialised
training prepares employees for their next career steps. Participants also get to meet top management and
build strong networks around the world.
Future Talent
We are always looking for future talent we can develop and equip with the relevant skills to take on
demanding PUMA Group responsibilities. We participate in various career fairs and university initiatives
both locally and abroad to approach potential employees and identify suitable candidates. Plenty of options
in an international work environment make PUMA an excellent place for career starters.
Nine apprentices and six dual students joined the PUMA Headquarters in Herzogenaurach in 2023. Dual
study programmes are available in International Business, Fashion Management, and Business Informatics.
Students acquire theoretical grounding through partnerships with various universities and practical
experience in different PUMA teams. Our apprentices either train as industrial clerks, IT specialists or retail
sales manager. They work in various company departments to build personal and professional skills and
increase their knowledge while attending vocational school. By the end of 2023, PUMA employed 41 trainees
and dual students.
Internships and working student positions are another way to become familiar with PUMA. Students from
around the world get six months of work experience as well as the opportunity to build their network and
hone their talents. By the end of 2023, roughly 140 interns and working students were part of the PUMA
family.
PUMA Annual Report 2023
↗ Our People
20
Future talents at the PUMA Headquarter
Feedback
We value internal and external feedback at PUMA, as it reveals whether we are on track and helps us grow.
We compare ourselves to other organisations and gain valuable insights from our employees.
Our "listening strategy" includes surveys, pulse surveys, focus groups, interviews and sentiment analysis to
gauge employee mood and understand their needs. For this, we use tools such as Amber, Leena AI, and
Workday. Our Top Employer certification, Great Place to Work award, “berufundfamilie” audit, and other
honours reflect regular industry benchmarking.
Since 2009, we have conducted global employee opinion surveys regularly to monitor employee engagement
and collect feedback on various topics. Overall, 15,339 employees participated in our 2023 global survey to
share their workplace and work life opinions. This equates to an 85% participation rate (2021: 86%). Despite
geopolitical tensions in Europe and their far-reaching social and economic effects, from 13 categories two
categories saw an increase in favourable scores, four categories stayed at their high levels, and seven
categories saw a slight 1% decrease from the last survey. Our poll results beat or match market data,
including high-performance data, in all but four categories. High-performance companies outperform the
market financially and consistently score excellently in surveys. This positive feedback inspires us to
continue and further strengthen the measures we have implemented. We shared the survey results globally,
locally, and at departmental level, and follow-up actions were devised.
Engagement
Outstanding performance and ongoing growth demand our employees' commitment and dedication. We
monitor employee engagement by regular global employee opinion surveys. The most recent one achieved
again an extraordinarily high engagement score of 91%, compared to 92% for the previous survey. This
implies our engagement score over the last three surveys has remained strong, something we are very proud
of. We value our employees' high level of engagement and brand loyalty and intend to retain this in the future.
We started already to implement the action plan resulting from this year's global employee survey.
PUMA Annual Report 2023
↗ Our People
21
↗ G.01 EMPLOYEE ENGAGEMENT SCORE
REWARD, RECOGNITION & BENEFITS
Compensation & Benefits
The attractive performance-based compensation system at PUMA consists of fixed base salary, PUMA
bonus schemes, profit-sharing programs and various social benefits and intangible benefits. We also offer
long-term incentive programs to the senior management level that honours the sustainable development
and performance of the business. The bonus system is transparent and globally standardised. Incentives
are exclusively linked to company goals.
Ensuring fair and non-discriminatory compensation at PUMA is one of our strategic priorities. Our
compensation framework is based on analytical job evaluations and a global grading system. Since the
criteria to be evaluated relate exclusively to characteristics of the job – not to the job holder – the
remuneration system as such is gender-neutral. This enables us to rule out any gender-specific
discrimination emanating from the compensation system.
After becoming Universal Fair Pay Analyst in Germany in 2022, PUMA was certified as Universal Fair Pay
Developer in Germany by FPI Fair Pay Innovation Lab as we successfully closed the adjusted pay gap in
January 2023. We extended the gender pay analysis to our subsidiaries in Europe and EEMEA markets by
using the consistent methodology. For Sweden and United Arabic Emirates we also closed the adjusted gap
in 2023. Certain regression analysis results look optimistic, and we are confident to close the adjusted pay
gap with the support of both local and global management in other European countries soon. For markets
with highly diversified workforce, nationality does not have a significant impact in the analysis. In 2024, the
gender pay gap analysis will be continuously conducted and introduced to our other regions to enhance
internal fairness.
In addition, we have continued our cooperation with the Fair Wage Network and are able to access
benchmarks for all of our subsidiaries and analyse them in terms of living wages as defined by the Fair Wage
Network. For the year 2023 we can confirm, with regards to the Living Wage Adjusted Mean benchmark as
defined by the Fair Wage Network, that all of our employees are earning a living wage or more.
Wellbeing
At PUMA, we care about the well-being of our people. Through a variety of services and benefits, we strive
to improve the health and happiness of our employees. We started the wellbeing approach at our
headquarters in Herzogenaurach, Germany. All PUMA companies around the world have adopted it and
adapted it to their local needs and regulations. It is now an important part of all PUMA subsidiaries around
the world.
There are four components to our wellbeing programme: Flex, Social, Financial and Athlete.
As a sports company, we offer regular in-house sports classes and training, sporting events and free access
to the gym. We provide outdoor facilities for football, volleyball, basketball, tennis, and paddle tennis. Our
69%
71%
91%
92%
91%
2013
2015
2019
2021
2023
2023
PUMA Annual Report 2023
↗ Our People
22
exercise classes include meditation, yoga, Zumba, jumping fitness, and Pilates. We host bouldering, stand
up paddling, trampolining, bowling, snowshoeing, and skiing events, among others.
Our "Be Well Weeks", which promote healthy lifestyles, offered free health checks and nutritional advice, as
well as the opportunity for employees to explore the latest fitness and sports trends. We provide access to
health and wellness resources, such as ergonomic assessments, mental health days, and health-related
information. To foster camaraderie and a sense of community, we organise team-building and social events
for our employees.
Flexible Working Conditions
The wellbeing of our people goes hand in hand with excellent working conditions based on a unique culture.
We offer a range of models, such as flexible working, mobile office, part-time and sabbaticals, to help our
employees balance their work and personal lives and manage stress. They can choose from these models
at different points in their lives.
All our offices around the world have a hybrid working model, which is very flexible in terms of when and
where people work. Employees in Germany can take advantage of free employee assistance services
provided by one of our partners. Our headquarters in Herzogenaurach was awarded the German "audit
berufundfamilie" certificate in 2015, which it has held ever since. The certificate recognises among other
offers services such as a parent-child office, a nursing room, day care and summer camps for children
during school holidays.
PROGRESSION & PERFORMANCE
Digitalised Infrastructure (Digitalisation)
A big part of PUMA's plan to streamline processes and improve the employee experience is investing in our
digital infrastructure. Since 2017, Workday has been our main human capital management (HCM) system. It
covers HR tasks at all stages of the recruitment process, from candidate to employee experience,
simplifying tasks such as recruitment, talent management and employee engagement. As a result, the
workforce is seamlessly integrated throughout the candidate and employee lifecycle.
Through this digital platform, our employees can access HR resources and data at any time, in a controlled
and secure environment that protects data privacy and integrity. It gives both employees and managers the
tools and processes they need to manage people effectively.
Workday's easy-to-use dashboards give managers clear, actionable insights for strategic planning and
decision-making. And because all of our global data is stored in one place in Workday, it enables
comprehensive analytics that help us make evidence-based decisions and drive tangible results.
By using such a digitalised infrastructure, we aim to maintain our focus on operational efficiency and
improving our HR practices throughout the PUMA employee lifecycle. This supports PUMA's overall goal of
improving workplace operations and the employee journey. It also helps us to prepare for the future to
better deal with the dynamics of challenging labour markets.
OCCUPATIONAL HEALTH & SAFETY
We want our employees to be healthy and safe, so we make sure that health and safety issues in the
workplace are taken seriously. Although the COVID-19 pandemic ceased in 2023, we continued to provide
free masks, rapid tests and vaccines where needed. To help our employees cope with this politically and
economically challenging environment and its increased mental stress, we focused on mental wellbeing,
resilience, and mindfulness in 2023.
Our global occupational health and safety policy underlines the importance of this issue. PUMA has a
central Health and Safety Committee at our headquarters in Herzogenaurach, which meets every three
months. The health and safety experts on this internal committee exchange information on health problems
PUMA Annual Report 2023
↗ Our People
23
and risks and carry out regular health and safety inspections. These are supplemented by inspections by
official bodies such as the German Berufsgenossenschaft. Each of our major sites has local health and
safety experts. Our Global Director People and Organisation, as part of our Executive Management Team,
reports at least quarterly on health and safety issues to our Executive Committee.
In our Headquarter in Herzogenaurach we got successfully certified for the ISO 45001 standard. ISO 45001 is
an international standard that outlines the requirements for an occupational health and safety management
system (OHSMS) and provides a framework to proactively manage and improve the occupational health and
safety performance. This certification not only demonstrates our commitment to safety and compliance with
health and safety law but also helps us to identify and address safety risks.
We have set ourselves the bonus-related goals of zero fatalities and lowering the average injury rate year on
year. For 2023, we set a goal to stay below a lost time injury rate of 0.50. The lost time injury rate expresses
the number of lost time injuries per 200.000 worked hours. In addition to conducting safety training courses
at all our sites, we also offer online training programs to prepare employees for potential emergency
situations and thus reduce the number of accidents. In 2023, we promoted our digital OHS training course to
all our sites, which included hygiene and proper mobile office behavior. Last year, we provided a total of
27,764 hours of safety training, while 10,769 employees were trained in fire safety and 7,692 employees in first
aid. In 2023, 98 workplace accidents requiring a work stoppage were recorded worldwide. This corresponds
to a lost time injury rate of 0.46 compared to 0.45 in 2022. The lost time injury rate for PUMA SE was zero
and zero in the previous year. Another indicator of employee engagement and the health of our workforce is
the rate of absence due to sickness, which was 1.95% in 2023. We recorded no fatal accidents, and the rate
of occupational diseases was zero at PUMA in the last 12 years, including 2023.
↗ G.02 LOST TIME INJURE (FREQUENCY) RATE
SOCIAL ENGAGEMENT
Community Engagement
2023 was another good year for PUMA's community engagement. With the support of our employees, we
engaged with local communities around the world through various projects. These ranged from beach
clean-ups and tree planting to organising and participating in charity runs. Colleagues also helped
underprivileged people, especially children, by donating food and school supplies and started many other
wonderful initiatives.
0.81
0.37
0.35
0.39
0.45
0.46
4.06
1.87
1.66
1.96
2.27
2.29
2018
2019
2020
2021
2022
2023
LOST TIME INJURY RATE per 200,000 working hours
LOST TIME INJURY FREQUENCY RATE per 1,000,000 working hours
PUMA Annual Report 2023
↗ Our People
24
Community engagement activities: Reforestation in Renca (from PUMA Chile)
Here are two examples of how they have helped:
PUMA Ukraine supports children affected by the war. Many of these children have lost everything -– their
childhoods, their homes, and their friends. In collaboration with the Peace in Amour Shelter in Dnipro,
PUMA Ukraine employees sought to bring joy and warmth to these youngsters. Corporate staff, store
managers and warehouse staff personalised gifts for the children by printing their names on T-shirts,
backpacks, and hoodies.
The PUMA team in South Africa organised several projects. As part of a beach clean-up, they picked up litter
from the beach and riverbanks. They also went to animal shelters and walked and played with the animals,
bringing food and blankets for the pets. The biggest CSR events take place every year at the head office and
in the stores: In 2023, the group prepared 2000 staple food parcels and 850 amenity kits for food banks,
children's homes and elderly people who can not move around. South African retail workers across the
country packed individual sandwiches to send to organisations in their local areas.
We have set ourselves the ambitious goal of spending at least twice as many hours on social engagement as
our average full-time equivalents (FTE) this year. We encouraged all of our employees around the world to
participate and recorded projects and employee engagement on an online platform. In total, initiatives led
by our subsidiaries on five continents contributed a total of 57,344 hours (3,113 for PUMA SE) of community
engagement. With the projects, we helped protect the environment, promote health and fitness, fight
discrimination or support education for children in need. Often these projects were carried out in
cooperation with local non-profit organisations. Considering that the number of full-time employees (FTEs)
in 2023 was 18,681 (1,255 for PUMA SE), we significantly exceeded our target. Since the start of our
community engagement program in 2016, we have recorded now over 200,000 community engagement
hours globally.
PUMA Annual Report 2023
↗ Our People
25
↗ G.03 COMMUNITY ENGAGEMENT 2023
CHARITY CAT
Charity Cat organisation founded by employees continues to support projects near and far in 2023
The members of Charity Cat have a huge heart for people in need – whether that is right next door or across
the globe. The charitable organisation was founded by PUMA employees in 2004 and has been fundraising,
supporting special causes, and partnering with different other charities ever since. There is Sozialtreff
Erlangen, for example, in the next town over from PUMA’s headquarters in Germany. Charity Cat not only
supports Sozialtreff Erlangen with the food donations, but members of the charity actually help out within
that organisation.
Further afield, on the Philippine island Samar to be precise, Charity Cat has been supporting the activities of
the charity Herz zu Herz e.V. (which means “Heart to Heart” in English). The goal is to help the poorest
families and children there to build a roof over their heads, make sure they have enough to eat and send
them to school. This year’s success story from Samar was that several children were able to finish high
school, while two young people went through culinary school, with one of them landing a job in a five-star
hotel at the end!
Another long-time partnered organisation of Charity Cat is FONMEH e.V. in Haiti, that has built an orphanage
for a group of children and young people, keeping them off the streets and in education. In Haiti, the situation
has gotten a lot worse: due to droughts and inflation, around 40% of the country’s population is suffering
extreme hunger or does not have enough to eat. So, Charity Cat was glad to help at least the kids in
FONMEH’s orphanage – who have been sharing their food with friends as neighbours – as well as other local
people in Haiti with a special financial donation in 2023, on top of the usual clothes and financial support.
Other Charity Cat activities included payments for food donations to be driven to the Ukraine, where the war
that started over one year ago is still ongoing and affecting many people, as well as emergency financial
donations for the victims of the huge earthquake in the already hard-hit area of south eastern Turkey in
spring and the catastrophic flooding that struck eastern Libya in the summer via Aktion Deutschland Hilft
e.V.
Besides financial support, Charity Cat also gives away PUMA clothing and shoes to partnered projects. For
example „Wir packen’s an e.V.“received several donations of clothing, underwear and especially shoes, that
was distributed to refugees fleeing their countries via Greece, France or Bosnia.
Charity Cat raises money through generous monetary donations from individuals, by fundraising during
employee events and by organising internal sample give-aways of products provided by PUMA, during which
employees can donate money for different Charity Cat projects.
APAC
11,977
21%
LATAM
8,548
15%
North America
4,563
8%
Europe
13,089
23%
EEMEA
19,167
33%
PUMA Annual Report 2023
↗ Our People
26
DIVERSITY, EQUALITY & INCLUSION
At PUMA, equality and non-discrimination are an important part of our culture. We encourage and support
people of all genders and believe that diversity drives success. The different nationalities and backgrounds
of our employees is one of our key strengths. We employ people from 143 countries and at our home base in
Germany, we have people with more than 81 different passports. BE YOU, the central tenet of the PUMA
family, is essential to creating a respectful and supportive work environment where each employee can be
their true self. We want to create a culture that fosters collaboration and fairness. That is why we are
listening to our PUMA family to address systemic barriers and identify areas for improvement.
In 2023, we reviewed our diversity policy and included employee training on discrimination and injustice,
intercultural communication, diversity, inclusion and belonging. We also hosted talks with internal and
external speakers and published articles on our internal communication platforms to raise awareness.
Celebrating diversity!
We treat all our employees fairly and equally, regardless of their gender, nationality, ethnicity, religion,
disability, age, or sexual orientation. These values are also part of our PUMA Code of Ethics (2005) and our
2010 Diversity Charter.
During Pride Month in June, for example, we celebrated our commitment to diversity and inclusion with a
“Together Forever” summer party at our headquarters, complete with food trucks, a live band and a DJ set.
Our partners from Christopher-Street-Day Nuremberg e.V. had their own stand with information about
LGBTQ+ events in the area. We also put up rainbow flags at our headquarters and lit up the building in
rainbow colours.
We share our beliefs with the rest of the world and support various NGOs and groups around the world.
For the fourth year running, PUMA worked with The Christopher-Street-Day Nürnberg e.V. to celebrate
PRIDE month in the Nuremberg metropolitan area, support the local PRIDE parade and raise awareness.
We were proud to organise our own information stand for the first time. This gave us the opportunity to
connect with the PRIDE community and showcase PUMA’s diverse and inclusive workplace culture where
employees can truly be themselves.
In 2023, PUMA North America’s (PNA) Diversity, Equity and Inclusion (DEI) team designed strategies based
on their five pillars: Environment, Talent, Learning, Advocacy, and Marketplace. PNA has four Employee
Resource Groups: BBOLD for Black and Brown Employees + Allies, Puma Association of Women (PAW) for
Women + Allies, PumALLiance for LGBTQ+ Employees + Allies, and ROAR for Asian-American and Pacific
Islander Employees + Allies. Our efforts also included trainings for leaders to improve their resources and
best-practices needed to act as an inclusive leader.
PNA’s DEI team hosted several cultural celebrations throughout the year including a conversation with
Black Panther’ Oscar winning costume designer Ruth Carter for Black History Month, Peloton instructor
and PUMA ambassador Aditi Shah for AAPI Heritage Month, and PUMA Ambassadors Dapper Dan and Alex
Toussaint for Juneteenth.
“Culture Labs” quarterly conversations meant to build a culture of belonging for everyone and “Connect &
Reflect” sessions which focus on providing safe space conversations were also offered by PNA.
PNA officially kicked off our strategic talent partnership with Clark Atlanta University, a historically black
university (HBCU), to foster talents among underrepresented groups in the industry and has, in addition,
partnerships with ALPFA, Ascend, Boston While Black, the Black Footwear Forum, National Black MBA,
College of Creative Arts and Pensole Lewis College of Business and Design, amongst other collegiate
partners. To date, this partnership has allowed PNA to impact more than 100 students and PUMA will
provide over $ 1 million in scholarships over a 5-year period.
PUMA Annual Report 2023
↗ Our People
27
Our efforts over the past year have been recognised with independent awards that we are delighted to
receive.
For the fourth year running, the Financial Times named us one of Leaders in Diversity, reflecting our
commitment to creating a diverse, equal, and inclusive culture. In terms of diversity, we are proud to be
included in the Pride Index and to be one of the top teams in the British Business Women Awards series.
Integrating Diversity, Equality, and Inclusion (DE & I) into the fabric of our business will help us maintain and
enhance our international competitiveness.
Actions to promote gender equality
We promote equality and are pleased that the PUMA Group has a balanced gender mix, with approximately
50% women and 50% men working with us. 44% of our STEM (Science, Technology, Engineering and
Mathematics) employees are female. Women held 43% of global leadership positions in 2023. Thanks to
PUMA's equal opportunities work, this figure has been on a high level over the last few years (2018: 40%,
2019: 41%, 2020: 43%, 2021: 44%, 2022: 44%, 2023: 43%). Due to the discontinuation of our Russian Operation
this year’s figure decreased by 1%. However, in the rest of the world the share of female managers has
increased by 0.2%. But there is still room for improvement. We are committed to increasing the number of
women in leadership positions around the world in the coming years, especially at the highest levels of
management.
↗ T.03 PERCENTAGE OF WOMEN IN MANAGEMENT POSITIONS (IN %)
Region
2017
2018
2019
2020
2021
2022
2023
Europe
31
31
35
34
37
37
39
EEMEA
38
43
42
44
42
40
35
North America
46
48
50
48
48
48
47
Latin America
35
38
38
40
45
44
44
Asia/Pacific
41
44
43
48
49
50
50
Total
38
40
41
43
44
44
43
In addition, the Supervisory Board of PUMA SE has set a target of at least two women (33%) for the
proportion of women on the Supervisory Board. For the Management Board, the Supervisory Board has set
the following targets for the proportion of women: (i) At least one woman (25%), on condition that PUMA SE
has four Management Board members, (ii) at least one woman (20%), on condition that PUMA SE has five
Management Board members, (iii) at least two women (33%), on condition that PUMA SE has six
Management Board members. We set ourselves an implementation deadline by October 31, 2026.
We want to continuously support the development of women in management positions. For this reason, we
offer special training and access to inspiring networks. The exchange with experienced female managers is
intended to encourage and motivate female employees to take on leading roles within the company
themselves.
We see the fact that PUMA has two women on the Management Board of four since January 1, 2023, with
Anne-Laure Descours (CSO) and Maria Valdes (CPO), as a success of our efforts to achieve equal
opportunities.
The average age of our employees worldwide is 32. Our employees represent all working age groups.
PUMA Annual Report 2023
↗ Our People
28
↗ G.04 AGE GROUP
BEING INCLUSIVE
We prioritise creating an inclusive workplace where people with disabilities can work and grow. We adapt
workplaces and training to meet their needs. In Germany, an elected works council member represents the
interests of employees with disabilities. In some countries, legal issues prevent our companies from
recording disability status and severity. Around 1% of our employees have told us that they have a severe
disability, but the true number is probably higher.
OFFBOARDING
Our aim is to ensure that the employee’s last day is as positive as their first day at PUMA, signifying an
appreciative end to the employment relationship. We facilitate a respectful and insightful offboarding
process, allowing both PUMA and the employee to reflect on their time together, ensure knowledge transfer,
and maintain a positive relationship post-employment. Employees are asked to complete an anonymous exit
questionnaire on Workday to provide feedback about their work experience. We will conduct an in-depth exit
interview to understand the reasons behind the decision to leave and propose to reapply in the future. We
also ask the leaving employees to remain a part of the PUMA family by joining our Alumni Network. This way
we keep in touch fostering professional networking opportunities as well as using this platform as talent
pool for future rehires.
AWARDS
As a global employer, PUMA received many awards in 2023. One of our main goals is to provide our
employees with a workplace where they can grow and take on new chances.
Forbes, together with market research company Statista, created the “World's Best Employers”
certification. We are proud to be included for the fourth year running in 2023. We were also awarded as one
of the “World’s Top Companies for Women” 2023 by Forbes and Statista. In addition, we have also been
recognised by Newsweek and Statista as one of the “World's Most Trustworthy Companies”. The Financial
Times together with Statista appointed us as “Leader in Diversity” for the fourth year in a row.
In addition to global recognition, we also received several regional awards. Focus magazine named PUMA
Europe “Top Nationaler Arbeitgeber” 2023. This award reflects our efforts to create a diverse, equal, and
inclusive culture. In terms of diversity, we are very proud to be listed in the Pride Index, and to have been
named one of the top teams in the British Business Women Awards series. All of this demonstrates that
PUMA supports and promotes diversity at all levels and around the world.
less than or equal to 20
11%
21-25
20%
26-30
21%
31-35
18%
36-40
12%
41-45
8%
46-50
5%
51-55
3%
56-60
2%
61-65
0.70% 66-70
0.10%
11%
20%
21%
18%
12%
8%
5%
3%
2%
0.7%
0.1%
0%
Less than or equal to 20
21-25
26-30
31-35
36-40
41-45
46-50
51-55
56-60
61-65
66-70
above 70
PUMA Annual Report 2023
↗ Our People
29
For five years in a row, we won India's Great Place to Work award. In addition, our Southeast Asian PUMA
site in Taipeh received three prestigious awards: HR Asia Best Companies to Work for in Asia 2023, HR Asia
Digital Transformation Awards 2023, and HR Asia Diversity, Equity & Inclusion Award 2023.
For Germany PUMA was ranked among the TOP 100 companies by Statista and was appointed as kununu
Top Company 2024 among the most popular 5% of the companies. Textilwirtschaft ranked us as number five
of the Top Arbeitgeber in der Textilindustrie in Deutschland 2023. And FOCUS magazine rated PUMA Europe
GmbH as Best National Employer 2023 in Germany.
In the Netherlands our Dutch PUMA store at McArthur Glen Designer Outlet in Roermond was awarded
Retail Store of the Year 2023.
Austria PUMA Dassler GmbH was certified as LEADING EMPLOYERS Österreich 2023 and is one of the TOP
1% of employers in Austria.
On top of this, we have been recognised as a Top Employer in 24 PUMA countries, this counts for 87% of the
PUMA population globally, including Germany, Austria, France, Italy, Spain, Poland, Ukraine, the United
Kingdom, Turkey, South Africa, India, Japan, Vietnam, South Korea, China and Hong Kong, Australia, USA,
Canada, Argentina, Chile, Brazil, Peru and Mexico, as well as in the four regions: Europe, Asia Pacific, North
America, and Latin America. We are especially proud to be named one of the Global Top Employers 2024.
Being recognised by various prestigious institutes and organisations around the world is not just an honour
but a responsibility that we take very seriously. We are committed to continuing our journey of people
excellence, ensuring that PUMA remains a place where talents are nurtured, achievements are celebrated,
and diversity is embraced.
PUMA Annual Report 2023
↗ Sustainability
30
SUSTAINABILITY
Foreword Anne-Laure Descours, CSO
31
Awards and Recognitions
34
PUMA’s FOREVER. BETTER. Sustainability Strategy 35
Sustainability Organisation and Governance
Structure
36
Most Material Aspects
42
Scope of the Report
48
Due Diligence and Risk Assessment
49
Human Rights
53
Fair Income
79
Health and Safety
89
Environment
94
Climate
104
Chemicals
133
Water and Air
142
Plastics and the Oceans
153
Circularity
156
Products
165
Biodiversity
177
Environmental Key Performance Data
184
Reporting in Accordance with the EU Taxonomy
Regulation
188
Index for Combined Non-financial Report and GRI
content
198
KPMG Assurance Statement
205
PUMA Annual Report 2023
↗ Sustainability
31
FOREWORD ANNE-LAURE DESCOURS, CSO
In 2023 we started preparing our sustainability vision for 2030 by asking our most important partners and
internal decision-makers to give us feedback on the sustainability topics that are most relevant for PUMA.
The results are included in the materiality assessment published in this report.
In parallel, we accelerated the implementation of our FOREVER. BETTER. Sustainability Strategy, making
progress towards achieving our 10FOR25 targets in Climate Action, Circularity, and Human Rights.
From a products and materials perspective, we produced eight out of ten products* according to our PUMA
Sustainability Index, which means these products are made with materials that are classified as preferred
fibres by Textile Exchange or originate from certified sources. In 2023, 99.7% of all leather was sourced from
Leather Working Group-certified tanneries, 99.2% of all cotton was sourced from Better Cotton licensed
farms or recycled and 99.4% of all paper and cardboard packaging was FSC-certified or recycled paper and
cardboard.
In Circularity, we expanded take-back programmes in three new countries. Meanwhile, almost 65% of the
polyester used for our apparel and accessories products came from recycled materials. We also started to
scale up the use of recycled cotton, which reached 8.6% in 2023.
We published the results of our RE:SUEDE project, an experiment to turn a new version of our iconic Suede
sneaker, into compost (under tailor-made industrial composting conditions) and expanded our RE:FIBRE
programme to transform textile waste and other used materials into new textiles. During the Women's
World Cup in Australia, the Swiss National Team played in RE:FIBRE jerseys, and our club partners re-
↗ ANNE-LAURE DESCOURS
CHIEF SOURCING OFFICER (CSO)
* Excluding products produced by PUMA Group company stichd and PUMA United. For further details on the reporting scope,
please refer to the Scope of the Report section.
PUMA Annual Report 2023
↗ Sustainability
32
launched the RE:FIBRE initiative by deploying new take-back bins in additional locations. Overall, 46,000
RE:FIBRE garments were produced in 2023.
To help fight climate change, we continued to source 100% renewable electricity for PUMA’s own offices,
stores, and warehouses, with either renewable electricity tariffs or renewable energy attribute certificates.
We also invested over € 2 million to electrify our PUMA car fleet and the first low carbon shipment tariffs
with our logistics service provider Maersk were implemented for our most important sea freight routes
between Asia and Europe. This has helped us to reduce our own carbon emissions by 85% (market-based,
including the purchase of RECs) compared to our 2017 baseline, as well as our logistics emissions from sea
freight by almost 50% compared to 2022.
In our supply chain, recycled material was up to 22% of the total material used for our products. Our core
suppliers continued to transition to renewable energy with large-scale rooftop solar PV installations, REC
purchases, and to transition boiler fossil fuels to renewable fuels. As a result, we reduced our absolute
Greenhouse Gas emissions (for Scope 3 category 1) by 30% compared to our 2017 baseline and our core
suppliers used 22% of renewable energy.
In 2023, PUMA joined Zero 100, a cross-sector membership-based research and intelligence organisation, to
accelerate progress on Digital Supply Chain Transformation and the path to zero carbon emissions.
On the social side, more than 222,000 factory workers received training on sexual harassment at work,
achieving our target three years ahead of schedule. As a long-term signatory to the Bangladesh
International Accord on Building and Fire Safety, we also joined Accord Pakistan and a pilot to establish an
Employment Injury Scheme in Bangladesh. Collectively, our PUMA employees contributed 57,000 hours of
community engagement work around the globe to support educational, women empowerment,
environmental, and sports activities.
Our efforts were recognised in several rankings and ratings such as the Corporate Human Rights
Benchmark, the Platform Living Wage Financials Benchmark, Know the Chain, the Carbon Disclosure
Project and being a finalist of the German Sustainability Award.
Despite this recognition, there are still many areas for improvement. We need to further strengthen our
efforts in Human Rights, Climate Action and Circularity.
Following our Conference of the People in 2022, we created our Voices of a RE:GENERATION initiative.
Empowering a cohort of four Young Voices to help PUMA identify key areas for improvement. Through
various projects, the Voices are helping us to communicate in a way that resonates with the next generation,
bringing new perspectives and challenging PUMA to think differently. The Voices have met several times
with key players at PUMA to discuss the progress and challenges surrounding our FOREVER. BETTER.
Sustainability Strategy and produced PUMA RE:GEN Reports; a podcast series created to engage and better
communicate with the younger generation on PUMA’s FOREVER. BETTER. 10FOR25 targets. The Voices have
also produced RE:HACKS (a social content series sharing tips with consumers on how to extend the lifespan
of clothing and kicks). The Voices participated in our materiality assessment, giving input into what will
shape PUMA's 2030 Sustainability Strategy.
There is only one Forever – Let’s Make it Better.
PUMA Annual Report 2023
↗ Sustainability
33
HIGHLIGHTS OF 2023
We continued to implement our FOREVER. BETTER. Sustainability Strategy working towards our 10FOR25
sustainability targets. We also started preparing for the Corporate Sustainability Reporting Directive (CSRD)
and of our next target cycle for 2030 with a new double materiality analysis.
Eight out of ten PUMA products globally were made with a significant part of recycled or certified materials,
such as better cotton or recycled polyester.
In Circularity, we re-launched product take-back initiatives at selected stores of our major football club
partners. At PUMA, we now operate take-back bins at our Headquarters Store in Germany as well as stores
in the USA, China/Hong Kong, and Australia. We equipped the Swiss National Women’s Football Team with
jerseys made from our RE:FIBRE initiative for the Women’s World Cup in Australia and launched product
take-back bins at our stores in Switzerland.
In Climate Action, we agreed on a new more ambitious science-based greenhouse gas reduction target with
the Science Based Targets initiative (SBTi) and published our first Climate Action Transition Plan. We
continued to power our own offices, stores, and warehouses with 100% green electricity (including purchase
of RECs) and added 92 electric cars to our PUMA car fleet. We decreased the air-freight ratio for the
transport of our products to under 0.5% and started using biofuels for the shipping of PUMA products from
Asia to Europe. We decreased our absolute Scope 3 emissions from the category purchased goods and
services by 30% from 2017 to 2023, our core suppliers used 22% of renewable energy and almost 62% of the
polyester used in our products is recycled.
In Human Rights, we made the payment of a fair wage a bonus relevant topic for PUMA's own staff and
continued to track the payment of wages at our core suppliers. For our core supplier Tier 1 factories, the
average payment is 12.7% above minimum wage. 222,933 factory workers received training on sexual
harassment and 83,089 were paid a living wage on average. Our PUMA employees donated 57,000 working
hours to community engagement work and we continued to focus on diversity and inclusion, for example by
increasing the percentage of women on our management board to 50% and by becoming a signatory of UN
Women Empowerment Principles (UNWEPs). Finally, we appointed a Human Rights Officer and worked on a
Human Rights Handbook for our employees to be published in 2024.
In Biodiversity, we continued to partner with the Fashion Pact and Textile Exchange and supported the
publication of a biodiversity landscape report for our industry. To ensure that the leather used for PUMA
products does not contribute to deforestation, we joined the call to action launched by the Leather Working
Group and Textile Exchange to source all bovine leather from deforestation-free supply chains by 2030 or
earlier. Since 2022, almost all tanneries used for PUMA leather products have been certified by the Leather
Working Group. For paper and cardboard, 99.4% are either FSC-certified and/or recycled, to avoid any link to
deforestation.
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34
AWARDS AND RECOGNITIONS
Our sustainability efforts continued to be recognised in several external rankings and recognitions. In 2023,
PUMA maintained its triple-A rating from MSCI, achieved a “good” rating from the critical consumer
labeling organisation “Good on You”, and achieved the highest score in the Platform Financials for Living
Wages benchmark report and Corporate Human Rights Benchmark for our industry, and maintained an A
rating from CDP.
PUMA once again topped the FTSE4Good sector ranking. We received a prime rating from ISS and were
included in the Corporate Knights Global 100 Most Sustainable Companies list for the third year in a row,
leading the textiles and clothing peer group. PUMA also had the highest score among all sports brands in
the S&P Corporate Sustainability Assessment.
At the same time, we continued to receive critical feedback in reports issued by Stand Earth on the use of
biomass as a replacement for coal in our supply chain, the Changing Markets Foundation on the
dependence on oil as a raw material for synthetic fibres and components, Labor Behind the Label on
working conditions in Pakistan, and Clean Clothes Campaign and Action Aid on the wage gap during the
COVID-19 pandemic in Cambodia. We consider these critical remarks as we develop our sustainability
standards, process and strategy.
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PUMA’S FOREVER. BETTER. SUSTAINABILITY
STRATEGY
Sustainability remains an integral part of the strategic priorities for PUMA under the leadership of our CEO
Arne Freundt and our CSO Anne-Laure Descours.
Our FOREVER. BETTER. Sustainability Strategy is based on our 10FOR25 targets, which were introduced in
2019 following an extensive materiality analysis and stakeholder dialogue. In 2023, we updated our
materiality analysis in preparation for our new target cycle until 2030. The results confirm that the areas of
Human Rights, Circularity, and Climate Action (including Biodiversity) were ranked as a high priority.
Until the end of our 10FOR25 targets period, we will still report on the 10 target areas to improve our
sustainability performance: Human Rights, Climate Action, Circularity, Products, Water and Air, Biodiversity,
Plastics and the Oceans, Chemicals, Health & Safety as well as Fair Income.
For each of these target areas, which reference the related United Nations Sustainable Development Goals
(SDG), we have defined a minimum of three concrete targets, as well as key performance indicators to
follow the progress we have made.
With our FOREVER. BETTER. Sustainability Strategy, we continue our path to fully integrate sustainability
into all our core business functions. Sustainability targets are part of the bonus arrangements for every
member of our global leadership team, from the CEO to Team Heads.
PUMA’s Code of Conduct and our vendor compliance programme, which were introduced more than 20
years ago, are still the basis for any contractual relationship with manufacturers globally and remain the
foundation of our responsible sourcing strategy and programme. We revised the Code in 2023 and will
publish the new version in 2024.
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SUSTAINABILITY ORGANISATION AND
GOVERNANCE STRUCTURE
PUMA’s sustainability organisation is structured and governed in multiple ways:
• At the Supervisory Board level, with a Sustainability Committee. In 2023, we had several meetings to
discuss the PUMA action plan related to the Corporate Sustainability Reporting Directive (including our
plan to conduct a double materiality assessment in 2023). We had a deep dive discussion into Human
Rights including PUMA work on fair income, responsible purchasing practices, the implementation plan
of the German Supply Act and critical feedback received through NGO reports regarding factories'
working conditions. We also had a deep dive discussion into circularity, including PUMA programmes
and projects update, and into Climate actions including our 2030 decarbonisation pathway plan.
• At the Management Board level, the responsibility for sustainability is assigned to the Chief Sourcing
Officer (CSO).
- There were several Management Board meetings in 2023 with dedicated sustainability updates and
decision on topics like the 2022 sustainability target status and 2023 action plan, PUMA’s action plan
related to the German Supply Chain Act and Corporate Sustainability Reporting Directive (including
our plan to conduct a double materiality assessment in 2023), new minimum wage negotiation
development in Bangladesh and PUMA’s position, circularity programmes and projects status and our
2030 decarbonisation pathway plan.
- PUMA’s CEO, the Chair of the Supervisory Board and the Works Council all participated in our
materiality assessment, which will lay the foundations of our new Sustainability Strategy for 2030.
- Our CSO has a monthly meeting with the Sustainability Leads for corporate and supply chain
sustainability. Topics include Human Rights, Health and Safety, and chemical programmes, as well as
climate and water projects in the supply chain.
• At the Functional Heads level, with an Executive Sustainability Committee.
- The Executive Sustainability Committee comprises of all Functional Heads of the company, such as
the People & Organisation, Sourcing, Finance, IT, Marketing, Risk Management, Investor Relations,
Retail, Logistics and Legal Affairs. The committee met twice in 2023 to provide an update on
sustainability programmes and approved the 2023 Sustainability Bonus Targets.
• At the Product level, with a Cross-Functional Business working group and monthly updates on PUMA’s
more sustainable product strategy and execution.
• At the Subsidiary level with nominated Sustainability Leads for each PUMA subsidiary (quarterly updates
on PUMA Sustainability Strategy and performance, best practice sharing from individual subsidiaries).
• At the Sustainability Experts level, with a corporate sustainability department and a supply chain
sustainability department.
• At the Legal and Compliance level, with a Human Rights Officer. In December 2023, PUMA appointed
PUMA General Counsel Corporate Governance & Compliance as Human Rights Officer. The Human
Rights Officer shall monitor PUMA’s risk management system, risk analysis relating to Human Rights
and compliance with Human Rights due diligence regulations.
• PUMA has a Health and Safety Committee that operates in the headquarters and conducts quarterly
meeting. This committee regularly reviews existing reports on known health and safety risks, conducts
frequent health and safety inspections and exchanges documentation on health issues and risks. The
Global Director People & Organisation, who is part of the Health and Safety Committee, informs the
Management Board of PUMA SE about relevant health and safety matters at least quarterly.
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↗ G.01 SUSTAINABILITY ORGANISATION CHART
SUSTAINABILITY PERFORMANCE-RELATED REMUNERATION
At PUMA, we link performance criteria in the remuneration of all leaders globally with clear and defined
sustainability targets. The variable annual performance bonus is based on the achievement of PUMA’s
FOREVER. BETTER. Sustainability Strategy targets.
All PUMA leaders globally, from the CEO to the Team Head level, have clearly defined sustainability targets
as part of their annual performance bonus. These targets are aligned with PUMA's FOREVER. BETTER.
Sustainability Strategy and focus on our 10FOR25 sustainability target areas: Human Rights, Climate Action,
Circularity, and Health and Safety. The targets cover 10% of the overall bonus for members of the
Management Board and 5% for other leaders globally.
↗ G.02 REMUNERATION CRITERIA BY WEIGHT
90%
10%
For management board
95%
5%
For other leaders globally
ESG related indicators
Financial indicators
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38
↗ T.01 2023 BONUS TARGETS
Area
Percentage
of Bonus Corporate & Subsidiaries Target
Sourcing & Supply Chain Target
Human
Rights
1.25%
(2.5%)
All PUMA employees are paid a living wage;
2 hours community engagement per FTE
No zero tolerance issues prevailing at year
end
180,000 workers training on women
empowerment
Climate
Action
1.25%
(2.5%)
30% of all cars in PUMA's car fleet hit the EU
Taxonomy definition of a low-emission car
(<50 g CO2/km)
Air freight ratio for transport of goods reduced
to under 0.5%
15% renewable energy for core suppliers
Health and
Safety
1.25%
(2.5%)
Zero fatal accidents;
Injury rate below 0.5
80% employees trained
Zero fatal accidents;
Injury rate below 0.5
100,000 workers trained
Circularity
1.25%
(2.5%)
Increase percentage of recycled polyester to
60% for apparel and accessories and 50% for
footwear
Take-back schemes rolled out in one country
each in Americas, Europe and Asia
Increase percentage of recycled polyester to
60% for apparel and accessories and 50% for
footwear
STAKEHOLDER OUTREACH
To ensure that the PUMA Sustainability Strategy covers the most relevant topics, we use a formal
materiality analysis process combined with stakeholder dialogue and outreach.
For our updated materiality assessment, we interviewed several non-profit stakeholders including the
Global Trade Union Federation IndustriAll, Fair Labor Association, Textile Exchange, United Nations
Framework Convention on Climate Change (UNFCCC), and the German Development Organization GIZ.
Our first PUMA stakeholder dialogue dates back to 2003. Since then, we have organised 15 in-person
stakeholder meetings and held one virtually. Our stakeholder dialogue includes representation in and
contribution to several sustainability initiatives. In 2023, we actively participated in several sustainability
initiatives and events, such as conferences by the UNFCCC (Global Stocktake and COP28), ZDHC (Board
Meetings), Textile Exchange Annual Conference, Better Work Global Business Forum, OECD Forum on Due
Diligence in the Garment and Footwear Sector, Better Cotton Initiative Annual Conference and the Global
Fashion Agenda (Global Conference), to name just a few. Our overall investment in partnerships to
accelerate sustainability efforts amounts to over € 1 million. Our next formal PUMA stakeholder dialogue
meeting is planned for April 2024.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively, further details are given in the Due Diligence and Risk Assessment section of this
report.
PUMA has placed a large emphasis on industry collaboration and, where possible, supporting existing
industry initiatives. Collaboration with our peers is paramount to streamlining the sustainability efforts of
our industry. We believe that encouraging the alignment of individual industry organisations, e.g.,
converging the use of tools and processes, makes the overall system more efficient.
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39
↗ G.03 MATRIX OF KEY PARTNERSHIP INITIATIVES
CONFERENCE OF THE PEOPLE AND VOICES OF A RE:GENERATION
In 2022, PUMA held the Conference of the People, a first-of-its-kind event for PUMA. Industry peers,
activists, NGOs, experts, ambassadors, and consumers came together to discuss solutions for some of the
fashion industry’s pressing sustainability challenges. With a special focus on Gen-Z, the conference
highlighted the need for brands to improve transparency and communication more regarding sustainability.
Following this event, in April 2023 PUMA launched its year-long Voices of a RE:GENERATION initiative,
empowering a group of Young Voices to help PUMA identify key areas for improvement and giving them a
seat at the table alongside leading stakeholders.
Through various projects, the Voices are educating, engaging and co-creating with PUMA to help improve
how PUMA communicates about sustainability in a way that resonates with the next generation, bringing
new perspectives and challenging PUMA to think differently. In September 2023, PUMA expanded the reach
of the initiative beyond Europe and the USA by adding Indian sustainable fashion advocate Aishwarya
Sharma. Aishwarya joined PUMA’s current Voices, the USA-based upcycler Andrew Burgess, Germany-
based sustainable and healthy living vlogger Luke Jaque-Rodney and France-based visual artist and
creative consultant Jade Roche.
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Voices of a RE:GENERATION: Aishwarya Sharma, Andrew Burgess, Jade Roche, Luke Jaque-Rodney (from left to right)
To date, the Voices have met several times with key players at PUMA to discuss the brand’s progress and
challenges surrounding its FOREVER. BETTER. Sustainability Strategy and produced PUMA RE:GEN
Reports, a podcast series created to engage and better communicate with the younger generation on
PUMA’s FOREVER. BETTER. 10FOR25 target areas.
Since then, the Voices have also partnered with PUMA to produce RE:HACKS (a social content series
sharing tips with consumers on how to care for and extend the lifespan of clothing and kicks) and
participated in the PUMA 2023 sustainability materiality assessment, giving input into what will shape
PUMA’s 2030 sustainability action plans.
In October 2023, three of the Voices visited some of PUMA’s manufacturing partners in Bangladesh,
Vietnam, and Turkey to get their impressions of PUMA’s supply chain and experience the realities, progress
and challenges of sustainability at scale on the ground. Their learnings will be shared through their social
channels in 2024. Building on these efforts and progress, PUMA will continue the RE:GENERATION initiative
into 2024.
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Voices of a RE:GENERATION visiting factories in Bangladesh, Turkey and Vietnam
PUBLIC POLICY ADVOCACY ENGAGEMENT
PUMA does not lobby as a separate entity. However, as part of our membership in industry federations and
expert organisations like the Federation of the European Sporting Goods Industry (FESI) or the Policy Hub,
our experts provide feedback on policy positions to those organisations and attend meetings with policy
makers from time to time. We ensure that our feedback provided is aligned with our Sustainability Strategy
and targets, such as limiting global warming to 1.5 degrees. In 2023, PUMA joined the Fashion Industry
Charter for Climate Action (UNFCCC) policy dialogue event in Bangladesh. Membership fees paid by PUMA
to the organisations involved in policy outreach are below € 300,000 per year in total.
Organisations engaged in public policy outreach in which PUMA is a member:
• Policy Hub
• World Federation of the Sporting Goods Industry (WFSGI)
• Federation of the European Sporting Goods Industry (FESI)
• Bundesverband der Sportartikelindustrie (BSI)
• Fashion Industry Charter for Climate Action (UNFCCC)
• Stifung Klimawirtschaft
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MOST MATERIAL ASPECTS
PUMA performed a formal materiality analysis in 2018 – 2019 with the help of expert consultancy BSR. The
methodology, list of consulted stakeholders, and results were reviewed and approved by PUMA’s Managing
Directors. Materiality assessment results are also considered in the risk management process. Our risk
management function assesses our most material topics and the risks related to those topics in
collaboration with the risk owners. The 2019 materiality assessment formed the basis for our existing PUMA
FOREVER. BETTER. Sustainability Strategy and 10FOR25 targets, as well as the structure of this 2023 report,
and is outlined in the graph below. Further details on the methodology can be found in PUMA’s 2022 Annual
Report.
↗ G.04 PUMA’S MOST MATERIAL ASPECTS (2018 – 2023)
DOUBLE MATERIALITY ANALYSIS – 2024 AND BEYOND
In 2023, PUMA conducted an updated materiality analysis based on the principle of double materiality as
requested by the Corporate Sustainability Reporting Directive (CSRD). The methodology, list of consulted
stakeholders, and results were reviewed and approved by PUMA’s Managing Directors (CEO, Chief Financial
Officer, Chief Product Officer and Chief Sourcing Officer). PUMA’s CEO, the Chair of the Supervisory Board,
and a Workers Council representative participated in the materiality assessment.
The 2023 materiality assessment was conducted by the expert consultancy Radley Yeldar and included:
• A horizon scanning stage, including peer benchmark assessment, legislation, sustainability frameworks
and ratings, and media screening
• Development of CSRD-compliant impact assessment criteria
• Stakeholders interviews with 32 participants, including 16 PUMA and 16 external stakeholders as well as
an online survey (37 responses)
• Out of the interviews, eight in-depth interviews for financial impact were conducted, including investor
and lender views
• Results validation meetings between PUMA’s Sustainability Team and Radley Yeldar
• Managing Directors‘ approval
A total of 25 sustainability topics were selected after the horizon scanning stage to be evaluated by
stakeholders. Seven topics were identified by our stakeholders as being financially material to PUMA.
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43
Social topics
• Forced and Child Labor in the supply chain
• Gender Equity in the supply chain
• Worker Wages in the supply chain
• Labor Conditions in the supply chain
• Employee engagement and development of own workforce
Other topics
• Circular Design and Production
• Supply Chain Traceability and Management
Seven topics were assessed to have a significant outward impact.
Social topics
• Worker Wages in the supply chain
• Labor Conditions in the supply chain
• Diversity, Equity, and Inclusion of own workforce
• Employee Engagement and Development of own workforce
Environmental topics
• Water Use in the supply chain
• Biodiversity, Land Use and Deforestation in the supply chain
• Climate Actions in the value chain
Notably, Labor Conditions, Worker Wages, and Employee Engagement and Development passed both the
financial and outward impact threshold for materiality. All eleven topics, targets and achievements,
identified as material (from a financial and outward impact perspective) are already included in this report.
Going forward, we will transition from our 10FOR25 targets toward our 2030 strategy, which will be based on
the new materiality assessment and the outcome of our stakeholder dialogue in 2024.
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↗ G.05 PUMA’S DOUBLE MATERIALITY MATRIX
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45
↗ G.06 PUMA’S 2025 SUSTAINABILITY TARGETS
*
SDG: United Nations Sustainable Development Goals
Human Rights
(SDG 3, 5, 8 and 10*)
Health and Safety
(SDG 3*)
Chemicals
(SDG 3 and 6*)
Water and Air
(SDG 6, 14 and 15*)
Biodiversity
(SDG 14 and 15*)
Climate
(SDG 7 and 13*)
Fair Income
(SDG 1, 2 and 10*)
Circularity
(SDG 9, 12, 14 and 15*)
Products
(SDG 12*)
Plastics and the Oceans
(SDG 3, 14 and 15*)
PUMA
SUSTAINABILITY
TARGETS
2025
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46
↗ T.02 PUMA 10FOR25 SUSTAINABILITY TARGETS PERFORMANCE SUMMARY
1
Not started
In progress
On track
Achieved
Target area
Targets for 2025
Performance 2023
Status
Target 1: Train 100,000 direct and indirect
staff members on women’s empowerment
222,933 factory workers and 3,727 PUMA
employees trained
01
Target 2: Map subcontractors and Tier 2
suppliers for Human Rights risks
Tier 1 subcontractors mapped
Tier 2 mapping completed (since 2022)
Human
Rights
Target 3: 25,000 hours of global community
engagement per year
57,000 hours
Target 1: Zero fatal accidents (PUMA and
suppliers)
Zero fatal accidents at PUMA
1 fatal accident at suppliers
02
Target 2: Reduce accident rate to 0.5 (PUMA
and suppliers)
0.46 at PUMA
0.2 injury rate at PUMA suppliers
Health and
Safety
Target 3: Building safety policy operational
in all high-risk countries
ACCORD Bangladesh: Progress rate 94%
Signed ACCORD Pakistan
Building safety assessments in 35
factories in Indonesia, India, Bangladesh
and Pakistan
Target 1: Ensure 100% of PUMA products
are safe to use
No product recall from the market
03
Target 2: Maintain RSL compliance rate
above 90%*
6,130 tests with RSL compliance rate at
98.7%
Chemicals
Target 3: Reduce organic solvent usage to
under 10 gr/pair
VOC index at 12.5 g/pair
Target 1: 90% compliance with ZDHC
Wastewater Guidelines
Conventional parameters: 99%
Restricted chemicals: 98%
Heavy metals: 99%
04
Target 2: 90% compliance with ZDHC Air
Emissions Guidelines
Our core Tier 1 and Tier 2 follow local
regulation
Joined ZDHC pilot
*
Water and
Air
Target 3: 15% water reduction per pair or
piece based on 2020 baseline
Textile: -4.9% per ton
Leather: +11.7% per square meter
Apparel: +9.4% per piece
Footwear: -21.5% per pair
Target 1: Align PUMA’s climate target with
1.5 degrees global warming scenario
SBTi approved our new 1.5 degree aligned
target for absolute GHG emission
reduction: Scope 1 and 2 by 90%, Scope 3
by 33% in 2030. Our first 2019 SBT
achieved in 2023.
05
Target 2: 100% renewable electricity for
PUMA entities
100% renewable electricity used for PUMA
entities (including RECs purchase)
Climate
Target 3: 25% renewable energy for core
suppliers
23.1% for Tier 1 (finished goods)
21.7% for Tier 2 (materials)
(including RECs purchase)
*
ZDHC air emission guidelines have not been yet released at the end of 2023. We have participated in a pilot in
collaboration with ZDHC to test the draft standards.
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Target 1: Eliminate plastic bags from owned
and operated PUMA stores
As of 1 January 2023, plastic bags are no
longer used in PUMA’s owned and
operated stores
06
Target 2: Support scientific research on
microfibres
Signed 2030 commitment of microfiber
consortium, 12 shedding tests conducted
Plastics and
the Oceans
Target 3: Research biodegradable plastics
options for products
RE:SUEDE experiment as a test for
biodegradability completed and results
publicly shared
Target 1: Establish take-back schemes in all
major markets
Take-back schemes established in at least
one country in each of Americas (the USA),
Europe (Switzerland) and Asia (Australia)
07
Target 2: Reduce production waste to
landfills by at least 50% compared to 2020
64.7% reduction of waste to landfill per
footwear pair
87.4% reduction of waste to landfill per
apparel piece
Circularity
Target 3: Develop recycled material options
for cotton, leather and rubber
Recycled cotton used at scale
Recycled rubber and reconstituted leather
used in selected collections
Target 1: Procure 100% cotton, polyester,
leather and down from certified sources
99.2% cotton
85% polyester
99.7% leather
100% down
08
Target 2: Increase recycled polyester use to
75% (apparel & accessories)
64.9% recycled polyester used for apparel
and accessories
Products
Target 3: 90% of apparel and accessories
classified as more sustainable
90% of all footwear contains at least one
more sustainable component
87% apparel volume
40% accessories volume
93% footwear volume
Target 1: Fair wage assessments for the top
five sourcing countries
Five out of five assessments completed
(Bangladesh, Cambodia, Indonesia,
Vietnam, China)
09
Target 2: Effective and democratically
elected worker representatives at all core
suppliers
66% core Tier 1 factories have elected
worker representatives
Fair Income
Target 3: Ensure bank transfer payments
for all core suppliers
100% core Tier 1 and Tier 2 suppliers use
digital payment
100% of workers are paid digitally in core
factories
Target 1: Support setting up a biodiversity SBT Sponsored a biodiversity landscape
analysis report with Textile Exchange and
Fashion Pact
10
Target 2: Procure 100% cotton, leather, and
viscose from certified sources
99.2% cotton
99.7% leather
84% viscose
Biodiversity
Target 3: Zero use of exotic skins or hides
Phased out the usage of kangaroo leather
during 2023
No exotic skins or hides in use
1
REC: Renewable Energy Attribute Certificates, RSL: Restricted Substances List, SBT: Science-Based Target, SLCP: Social
and Labor Convergence Programme, Tier 1 (T1) suppliers: Supplier of finished goods, Tier 2 (T2) supplier: Supplier of
materials or components, Tier 3 (T3) supplier: Supplier of yarn, hides, etc., VOC: Volatile Organic Compound, ZDHC: Zero
Discharge of Hazardous Chemicals
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SCOPE OF THE REPORT
DATA COLLECTION
In the Sustainability report, we cover the PUMA Group data, excluding PUMA United. We collect data from
our core suppliers of components, materials, and finished products. Our materials data excludes the
materials used by stichd (mainly socks and bodywear) and PUMA United, as well as the materials used for
Cobra Golf equipment, as these companies run their own sourcing. For social compliance data, PUMA
United, stichd, and Cobra Golf factories producing PUMA products are included. For environmental data, we
also report stichd own sites and factories according to PUMA’s Environmental Performance Rating System.
We do not provide separate reports for PUMA SE and the Group in the Sustainability section.
DATA SOURCES
To ensure a high level of transparency and promote the sharing of environmental and social data with our
industry peers, we have chosen to use external databases, most of which are publicly accessible:
• The Open Supply Hub, an open-source map and database of global apparel facilities
• The Fair Factories Clearinghouse for sharing social audit data with other brands
• The wastewater platform of the Zero Discharge of Hazardous Chemicals Foundation (ZDHC) for supplier
data on wastewater testing reports (ClearStream reports)
• The ZDHC Chemicals Gateway for the use of safe chemicals
• ZDHC-approved chemical inventory platforms: BHive, CleanChain, E3
• RSL database Green Arrow
• The China-based NGO IPE for the publication of suppliers’ environmental data
• IPE’s Green Supply Chain Map of environmental performance data of some of our core suppliers in
China
• The Higg Index Platform Worldy
• The Fair Labor Association (FLA) fair compensation dashboard to benchmark factory workers’ income
towards industry and/or living wage benchmark
• The Fair Wage Network database
• ACCORD Bangladesh inspections database: The Bangladesh Accord on Fire and Building Safety in
Bangladesh
• Worker Complaints – third-party platforms: MicroBenefits CIQ, Labor Solution - WOVO, Amader Kotha
We also use our own sustainability data collection tool to record social and environmental performance data
from PUMA-owned and operated sites and from the core suppliers that manufacture our products or the
material used in our products.
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DUE DILIGENCE AND RISK ASSESSMENT
PUMA conducts regular and industry-specific due diligence on human rights and labour, environmental, and
integrity risks (listed in T.03) for its own activities and across its supply chain as per the recommendations of
the UN Guiding Principles for Business and Human Rights, OECD Due Diligence Guidance for Responsible
Supply Chains in the Garment and Footwear Sector, and other relevant responsible business conduct
standards, such as the German Supply Chain Act. We embed responsible business conduct in our policies,
training, and management systems and identify actual and potential harms in our own operations and
supply chain.
↗ T.03 HUMAN RIGHTS & LABOUR, ENVIRONMENTAL AND INTEGRITY RISKS
Human Rights & Labour Risks
Environmental Risks
Integrity Risks
Child labor
Greenhouse gas (GHG) emissions
Bribery and corruption
Discrimination
Hazardous chemicals
Forced labor
Water scarcity
Occupational health and safety (e.g.,
worker-related injury and ill health)
Water pollution
Violations of the right of workers to
establish or join a trade union and to
bargain collectively
Landuse change
Non-compliance with minimum wage
laws
Waste
Wages do not meet basic needs of
workers and their families
Air emissions
Due diligence is an ongoing process, to identify, mitigate, and prevent risks and address their existing and
potential adverse impacts (e.g. child labour, discrimination, hazardous chemicals, etc.).
As stated in the “Corporate Governance Statement”, PUMA has a functioning Compliance Management
System (CMS) to systematically prevent, detect and sanction violations in the areas of corruption, money
laundering, conflicts of interest, antitrust law and fraud/embezzlement.
In response to the possibility of future crises and/or upcoming regulations, our vendors are recommended
to conduct their own due diligence. PUMA’s process of assessing the risk of potential harm to people
(human rights and labour and environmental risks) includes:
• External sources: NGO reports, media, country indices and country regulation, PUMA partnerships with
Fair Labor Association, Better Work, Fashion Charter, ZDHC, AFIRM, etc.
• Internal sources: PUMA social, chemical and environmental audit findings/data analysis, grievances
received per country, supply chain risk mapping, number of factories in countries with high risk, per
commodity, also including non-core factories, material processing and raw material extraction.
We prioritize risks based on:
• Severity: Scale (how serious the impact is), scope (how many people are or will be affected) and
irremediability
• The likelihood of risk occurring based on the operating environment: Conflict zone, weak governance;
mismatch between local practices and international standards
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Our mitigation measures include the factory monitoring programme, grievance mechanism, supplier
scorecard, business integration, goal-setting and internal and external reporting. The effectiveness of our
measures is evaluated based on progress and compliance with our policies.
PUMA’s policies are published on our website, as well as our factory monitoring programmes and
standards defined in our Social, Environmental, Occupational Health and Safety and Chemical Handbooks.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy, following Fair Labor
Association guidelines and approval. It formalizes PUMA’s commitment to engage with CSOs reactively and
proactively for information sharing (to understand concerns and to increase transparency about PUMA’s
works, challenges and progress) and for consultation purposes (to make informed sourcing decisions to not
impact people's rights) which can lead to collaboration to address a specific challenge or remediate an
issue.
It also defines the criteria below to plan the form and frequency of engagement:
• High-risk and high-production volume countries
• Severity and the likelihood of violations or risks
• Knowledge gaps regarding new or upcoming risks identified through a supply chain risk assessment
• Persistent issues identified through factory monitoring programme or risk assessment
• Concerns raised through PUMA grievance mechanisms and third-party reports
Proactive engagement with CSOs aims to develop and review our sustainability-related goals, policies and
standards, assess risks or get input for our double materiality assessment, develop remediation plans and
improve access to remedy, inform about PUMA’s sustainability performance and open issues and evaluate
the effectiveness of our due diligence processes, sustainability programmes and grievance mechanism.
Reactive engagement takes place when a concern is raised to PUMA. PUMA and PUMA’s suppliers offer
different grievance channels to any worker as well as third parties, including CSOs, to raise their concerns
regarding human rights, environmental protection and violations of PUMA’s policies: such concerns can be
raised through workers’ voice platforms, the PUMA hotline and Fair Labor Association third party
complaints.
PUMA also adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by geography, commodity and issue
• Complete a risk assessment for suppliers, factories and sites
• Manage risks that are material for each supplier, factory or site
Our 10FOR25 targets are linked directly to the four main sustainability-related risks identified in our due
diligence process:
• Potential human rights violations or incidents in our supply chain (Tier 1 and core Tier 2*)
• Potential incidents of environmental pollution in our supply chain (Tier 1 or core Tier 2)
• Potential non-compliance with chemical regulations during production (Tier 1 or core Tier 2)
• Negative effects of climate change (transition risks and physical risks)
The four main sustainability-related risks are reflected in the Risk Management System that PUMA has
established to identify and manage material risks or risks that could pose a threat to the company’s
objectives at an early stage. The Risk Management function conducts formal interviews with selected risk
owners (key function management responsible for identifying and addressing the risks) on a semi-annual
basis set to identify, evaluate, and report risks. The risk owners of PUMA’s Sustainability Department review
risks within their area of responsibility and report on the measures implemented to mitigate or reduce the
potential impact of sustainability-related risks to the Risk Management function.
* Tier 1 manufacturers of PUMA products; Tier 2 manufacturers of materials and components
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To mitigate and prevent sustainability risks, PUMA has set the 10FOR25 targets and implemented a due
diligence process. PUMA reports internally and publicly (through annual sustainability reports) on the
following activities and progress toward our 10FOR25 targets:
• Conducting regular complete and follow-up social audits based on International Labor Organization
standards (including reaudits and capacity building projects) for all Tier 1 and core Tier 2 suppliers.
• Monitoring performance with factory environmental management system via Higg Index Facility
Environmental Module (FEM), regular RSL (Restricted Substances List) testing of materials and
products, input chemistry control via Manufacturing Restricted Substances List (MRSL) by ZDHC, output
control via wastewater tests by independent and accredited laboratories.
• Following the status of new regulations via industry associations such as the Federation of the European
Sporting Goods Industry (FESI), or the Policy Hub, and other key partners. A matrix listing PUMA's key
partnership initiatives is maintained to track all relevant international and national sustainability
organisations, and follow up on legal requirements (e.g. UK Modern Slavery Act, new German Supply
Chain Due Diligence Act) in a timely manner.
• Implementation of an approval procedure for sustainability related product claims.
• Conducting stakeholder dialogue with NGOs and other expert organisations.
• Regular updates of PUMA policies and sustainability standards (e.g. Code of Conduct, sustainability
handbooks).
• Establishing of a functioning workers’ hotline (included in Code of Conduct) and employees’ hotline
(included in Code of Ethics).
• Enhanced industry-wide collaboration with competitors in terms of human rights and environmental
performance measurement tools, standards and certifications (e.g. Facility Environmental Module,
Social Labour Convergence Programme, Material Restricted Substances List, Leather Working Group,
Forest Stewardship Council).
• Regular internal training (for example e-learning accessible via Workday).
Net risks as outlined in the CSR Directive Implementation Act (§ 315c in relation to § 289c, section 3, number
3 German Commercial Code (HGB)), were not identified in 2023.
Further details on PUMA’s overall risk management can be found in the Risk Management section.
In 2023, as part of PUMA’s continuous review of Due Diligence policies and processes, we revised our Code
of Conduct and will publish it in 2024. We will also revise PUMA FOREVER. BETTER. Sustainability
Handbooks in 2024.
The scope of the implementation of the Code, Policies and Handbooks has been expanded, mentioning all
PUMA’s business partners within and beyond the supply chain, including business partners who represent
PUMA (such as consultants and agents), and PUMA’s own organisation.
The updates of the Code of Conduct include clarifying definitions regarding the worst forms of child labour
and the prohibition of slavery. Provisions were added regarding supply chain traceability, the use of security
forces without violating any Human Rights, provision on chemical and waste management in line with
International Conventions, as well as unlawful eviction and taking of land. We also emphasize PUMA’s
commitment to remediation of violations and similar expectations from our business partners; we also
added how workers can use PUMA hotline for any grievance.
Two new standards were added to the Code of Conduct:
• No harm when using security forces
• Respect of land rights
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To ensure that our suppliers understand the requirements set by PUMA as well as international Due
Diligence regulation and standards in the garment and footwear industry, PUMA organised multiple training
sessions in 2023 including:
• Meetings with suppliers to share updates on PUMA standards and industry best practices, elaborate on
the German Due Diligence Supply Chain Act by industry experts; CNTAC in China and VITAS in Vietnam.
• Training on Accident Prevention and Reporting with factory management, who will support us in
achieving the goal of training 100,000 workers in this area.
• Root cause analysis training for strategic suppliers.
• Customised e-learning on Social Standards, to support existing and new suppliers with understanding
PUMA's expectations.
• PUMA expectations for suppliers regarding our Code of Ethics.
Fashion Revolution works towards a vision of a fashion industry that conserves and
restores the environment and values people over growth and profit. The Fashion
Transparency Index is an annual review of 250 fashion brands and retailers ranked
according to their level of public disclosure on human rights and environmental policies,
practices and impacts in their own operations and in their supply chains.
PUMA ranks sixth out of the 250 fashion brands and retailers, our index improved from 58% in 2022 to 66%
in 2023, because of our increased public disclosure on social and environmental policies, practices and
impacts.
The Corporate Human Rights Benchmark ranks 110 of the world’s largest apparel and
extractives companies on their corporate human rights performance.
PUMA ranks fourth out of 110 companies and first in the Apparel sector of the World
Benchmarking Alliance 2023 Corporate Human Rights Benchmark, with a total score 53.4 of out of 100. We
have embedded our policy commitments to respect human rights within our operations by allocating
responsibility and resources for the day-to-day management of human rights, providing training on human
rights issues, and establishing a global due diligence system to assess, mitigate and evaluate human rights
risks and impacts.
KnowTheChain benchmarks how companies address forced labor in corporate
global supply chains to inform companies’ and investors’ decision-making and
enable companies to operate more transparent and responsible supply chains.
PUMA ranks second out of 65 companies in KnowTheChain 2023 Apparel & Footwear Benchmark. Compared
to 2021, we improved our rank by six places. This is because we disclose the percentage of migrant workers
at Tier 1 and core Tier 2 suppliers, recruitment fee remediation across four countries and responsible
recruitment training for suppliers. We also increased information disclosure on our human rights risk
assessment process. Notably, PUMA has the highest score on the theme of Traceability & Risk Assessment.
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HUMAN RIGHTS
TARGET DESCRIPTION:
• Train 100,000 direct and indirect staff on women’s empowerment
• Map subcontractors and Tier 2 suppliers
• Two hours of community engagement per FTE globally per year
Relates to United Nations Sustainable Development Goals 3, 5, 8 and 10
KPIs:
• Percentage of worker complaints resolved
• Number of factories with an A, B+, B-, C or D grade
• Number of Tier 2 suppliers and subcontractors included in our risk mapping
• Number of zero-tolerance issues prevailing at year end
• Number of employee hours spent on community engagement (KPI shared with Human Resources)
• Number of workers trained on women’s empowerment
PUMA’s sustainability policies are aligned with the United Nations’ (UN) Declaration of Human Rights, the
UN Guiding Principles (UNGPs) on Business and Human Rights, the International Labor Organization’s Core
Labor Conventions, and the ten principles of the UN Global Compact (UNGC). Observing Human Rights was
part of our first Code of Conduct developed in 1993 and has guided our business ethics ever since. It has
been the long-standing practice of PUMA to monitor our supply chain and conduct Human Rights due
diligence for our suppliers globally, including those in major production hubs, such as Vietnam, Bangladesh
and China continuously and rigorously.
HUMAN RIGHTS AT PUMA'S OWN ENTITIES
Guided by our Code of Ethics and Code of Conduct, PUMA’s company culture of diversity and inclusion puts
Human Rights at the centre of everything we do. Our commitment to employee well-being is also
documented in numerous employee awards and top-employer rankings received all over the world.
Our internal programmes to uphold Human Rights include measuring gender, nationality, and age distri-
bution among our colleagues, providing a safe work environment as well as elected worker representatives
and collective bargaining agreements at selected larger offices, such as our German headquarters. In
December 2023, PUMA appointed a Human Rights Officer to monitor PUMA’s risk management system, risk
analysis relating to human rights and compliance with Human Rights due diligence regulations. In addition,
we worked on a Human Rights Handbook for our own entities globally, to be published in 2024.
All PUMA employees who feel that ethical standards in business may have been compromised can raise
their voices. Various channels are in place to report any suspicions and/or observations related to modern
slavery or other Human Rights aspects. In practice, all employees can address their requests regarding
apparent failures to their line manager. They may also raise the matter with staff representatives, the Legal
department, the Internal Audit department, or via a toll-free external whistleblower platform available
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worldwide. Our Ethics Committees make sure that no action is taken against an employee who, in all good
faith, reports a case of failure to comply with an ethical principle of the Code of Ethics, because of having
reported the matter. In 2023, to meet its obligations under the German Act on Corporate Due Diligence
Obligations in Supply Chains (LkSG), PUMA published its Rules for the Complaint Procedure.
REFORM INITIATIVE
As REFORM continues through its fifth year of existence, our partnership with The Trevor Project (TTP)
continues to drive impact in our communities with a focus on supporting policies and practices that affirm
and protect young LGBTQ athletes. In 2021, in partnership with TTP, we sought to build a well-researched
and comprehensive training scheme to support equity in sports and promote gender inclusivity. In 2023, we
launched the Reform the Locker Room programme, furthering our reach to locker rooms, classrooms, and
offices alike.
REFORM was also able to launch a new project and collection, called Icons of Unity. Icons of Unity honors
PUMA ambassador and global Icon, Tommie Smith, and amplifies his message of Justice, Dignity, Equality
and Peace. As we continue to build out this programme, we look forward to identifying athletes, colleagues,
and community leaders who embody this characteristic of Tommie, being more than what is obvious and a
beacon for a more united community. We kicked this off with an amazing interview with Tommie and
Olympians, Felix Streng and Colin Jackson.
In 2023, we educated and preserved culture and history through our work with BLACK FIVES and its NY
RENS 100 collection launched in November with court refurbishments and street dedications. We have been
able to advocate for and amplify a message of rebuilding communities in conjunction with our partner Game
of Our Lives and football star and PUMA ambassador Oleksandr Zinchenko and his Game4Ukraine
charitable celebrity soccer match that raised large amounts of money to support the rebuilding of Ukrainian
schools. We supported the match with game balls and training gear for all participants. We also hosted a
match viewing event at our Herzo HQ with many of the Ukrainian families that have been relocated during
the time of war.
REFORM continues to show up and show out for our broader communities and remains true to our brand
vision; “…where all barriers to participation are removed so that everyone who wants to play can play.”
More on our Reform Initiative can be found here.
PUMA x BLACK FIVES collection which honours the 100th anniversary of the Harlem Rens
A panel discussion on Gidra, an Asian-American student-led newspaper created to stop the anti-Asian sentiment in 1969
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COMMUNITY ENGAGEMENT
Our goal is to reach a total number of hours spent on community engagement equal to twice our annual
average FTE (full-time equivalent). We encourage all our employees around the world to participate and
record projects and employee engagement on an online platform.
Our Community Engagement Programme has continued to create a positive impact locally by supporting
social, health and environmental causes, and we were able to donate 57,000 community hours in 2023. Since
2017, we have now recorded over 200,000 community engagement hours globally.
For more information on PUMA's employee policies and philanthropic donations please refer to the Our
People section.
Community engagement activities from PUMA Chile: Reforestation in Renca
HUMAN RIGHTS IN THE SUPPLY CHAIN
RESPONSIBLE PURCHASING PRACTICE POLICY
As a responsible business partner for our suppliers, we recognise that our business practices, and our
trading terms and conditions can have a significant impact on the organisation at our suppliers’ factories.
PUMA’s Responsible Sourcing Policy aims to reduce potential negative impacts. PUMA’s Responsible
Purchasing Practice Policy was developed in 2019 to create a framework for guiding decisions and
maintaining consistency through eight key principles:
1. Only working with suppliers that have signed a Manufacturing Agreement.
2. Payments to suppliers are made on time and in full. We only deduct payments and impose penalties
when it is lawful to do so.
3. Price paid for the product to include reasonable labour costs, such as overtime premium payments,
social insurance payments, and costs to comply with environmental standards.
4. Open production capacity must be declared by the supplier based on standard work weeks as per the
law of the relevant production country.
5. Seasonal production plans are allocated considering the negotiated capacity with the supplier.
6. Sufficient production lead time must be provided.
7. Suppliers may not subcontract production without authorisation from PUMA. All subcontracting units
should respect our Code of Conduct.
8. A minimum notice of six months must be given when ending a partnership or downscaling orders.
Longer timeframes will be granted, based on the average production capacities used in the last two to
three years, to reduce the impact on workers.
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In 2022, 280 PUMA staff and 1,145 supplier participants received Responsible Sourcing Practice training. The
training referred to the UN Guiding Principles on Business and Human Rights, to explain the link between
the purchasing practices, potential impact on working conditions, and the risk of Human Rights violations.
In 2023, as part of our Due Diligence Policy review, we added a clause on responsible disengagement into
our responsible purchasing practices. Following the Fair Labor Association guidelines, PUMA commits to
provide a minimum of six months of notice when significantly downscaling orders or terminating a business
relationship with suppliers. To mitigate impact on workers’ jobs and give suppliers time to find new buyers,
a longer timeframe shall be granted, depending on the average production capacities used over the last two
to three years.
BETTER BUYING SURVEY
In 2023 we asked 32 strategic Tier 1 suppliers (11 accessories, 12 apparel, and nine footwear suppliers
representing 69% of our business volume and 80% of our business value) to participate in the Better Buying
survey to collect feedback from our core suppliers on the implementation status of PUMA’s responsible
purchasing practices. 28 suppliers responded, and the response rate was 90.3%.
Better Buying gathers data from suppliers to provide guidance to brands for improving purchasing
practices. Brands voluntarily invite their suppliers to participate. Suppliers rate their brands anonymously
according to the five principles of responsible purchasing which focus on the buyer purchasing practices
that could have the biggest impact on suppliers’ businesses:
1. Visibility: Brands provide enough information about the planned business for suppliers to act
2. Stability: Brands give suppliers steady and predictable business across the year
3. Time: Brands provide enough time for suppliers to complete all processes
4. Financials: Brands use fair financial practices with suppliers
5. Shared Responsibility: Brands play their part in improving supply chain social and environmental
sustainability
We benchmarked our 28 suppliers' feedback with more than 800 suppliers' feedback from the 16 brands
classified under sporting goods and discussed these results internally to set a clear focus area for
improvement. PUMA’s overall score slightly increased in 2023, mainly due to the increased score on
covering cost for compliant production, accountability for delays, regular forecast updates, and order
cancellation percentage. The feedback is described below.
VISIBILITY
Design and development can play a significant role in improving supply chain sustainability. Choices made at
this stage have significantly lower financial, social, and environmental impacts. While all our samples are
based on a tech pack, tech packs have also been reviewed in 2023 to improve the accuracy of information.
PUMA has also provided internal training on the importance of providing accurate information to suppliers.
Our purchase order accuracy has improved compared to 2022. Our suppliers recognise our efforts in
increasing the use of more sustainable materials, 3D sampling, industry certification, and setting target
prices before product development. Our sample hit rate remains strong.
All our suppliers confirmed that we provide them with a business forecast, enabling them to plan the
workforce that is needed. In 2023, PUMA discussed its production capacity and the potential impact of
forecast inaccuracies on suppliers. We also provided internal training for key business departments
involved. PUMA has also been working with its suppliers to ensure their production capacity is accurate and
there has been regular feedback on sales forecast to its sales division. Although the overall score has
improved for 2023, we have identified the need to better communicate our overall forecasting and planning
timelines and processes to our suppliers and improve in-season communication for some product divisions.
Given the global macroeconomic situation in 2023, which has led to a change in customers' ordering
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behaviour, the gap between the placed and planned capacity results in unutilised capacity and excess
material increased according to our suppliers.
STABILITY
We value long term relationships with our suppliers. 40% of our suppliers have been working with PUMA for
more than ten years. To help ensure stability, as a principle, we will not cancel orders and accommodate
order placement to respond to suppliers’ difficulties such as lockdown periods. In the case of order
cancellation which remains less than 1% for PUMA, we always pay our suppliers for any liability associated
with cancellations. In 2023, 100% of suppliers from Accessories and Footwear reported no order
cancellation, while some Apparel suppliers reported cancelled orders.
TIME
A large majority of our suppliers confirmed that we have an agreed time and action calendar for pre-
production and production deadlines. In 2022 we received feedback from our suppliers that PUMA missed
some deadlines, however through better communication in 2023, our suppliers confirmed an improvement.
FINANCIAL
Most suppliers feel they have favourable financial terms through digital payment, the FOREVER. BETTER.
Vendor Financing Programme and through receiving payment for samples and bulk production in a timely
manner. PUMA International Trading and the vendors have enabled the digitisation of the supply chain
creating transparency, operational efficiency, and reducing complexity. For example, all payments to
vendors are automated and paper-free.
We do not apply late penalties to our vendors, and suppliers confirmed we are flexible and accountable for
delays. We will strengthen our communication of payment terms to suppliers. We also see opportunities to
collaborate with our suppliers to increase their production efficiency related to style allocation, volume,
standardisation of fabrics, labelling and packaging processes, etc. We made significant improvements in
covering costs for compliant production compared to 2022, but suppliers also reported pressure in cost
negotiation in 2023. Our suppliers also recognised our efforts to reduce audit duplication which benefits
them in saving cost.
SHARED RESPONSIBILITY
All our suppliers recognise that sustainability is the precondition for doing business with PUMA. However, in
2023, suppliers felt less incentivised to reach the sustainability goals compared to 2022 since we saw a
decline in orders in the first half of the year and stabilisation during the second half. The majority of our
suppliers acknowledge our effort to enforce our sustainability standards.
FOREVER. BETTER. VENDOR FINANCING PROGRAMME
The programme, established in 2016, allows suppliers with a good or very good compliance rating to benefit
from PUMA’s high credit rating and preferred interest rates. The programme runs in partnership with IFC,
BNP Paribas, HSBC, and Standard Chartered Bank.
At the end of 2023, 72 vendors were registered users (compared to 71 at the end of 2022). The financed
volumes in the full year 2023 amounted to 322 million compared to 2022), which reflects the
massive interest rate and with this financing cost increases for our suppliers, who chose other sources or
tried to avoid external financing.
HUMAN RIGHTS RISK ASSESSMENT
In previous years we have conducted Human Rights risk assessments at corporate and the supply chain
level and shared the results in our 2016 and 2017 Annual Reports. In 2021 we commissioned and completed a
Human Rights risk assessment, focusing on forced labour management in the supply chain.
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In our Handbooks, we request our vendors to conduct due diligence. To increase transparency, we report on
the most common audit findings, training, grievances, and mitigation measures as outcome-focused key
performance indicators (KPIs) to track the effectiveness of our supplier programmes.
The PUMA hotline is accessible to Civil Society Organisations (CSOs) and external stakeholders, including
stakeholders representing vulnerable groups: women, children, migrant workers, indigenous people and
national or ethnic, religious, and linguistic minorities. We also extend the scope of our social monitoring
programmes to EMEA factories, high-risk countries warehouses, and to some non-core Tier 2 suppliers.
In 2023, we conducted a review of our grievance mechanism, in line with the UNGP criteria for operational-
level grievance systems. To do this, we surveyed 14,823 workers at 45 factories in eight countries. The
legitimacy of the PUMA hotline was acknowledged by 94% of workers, accessibility confirmed by 80% of
participants together with 92% regarding the hotline's availability in a language they understand.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively. Please refer to the Due Diligence and Risk Assessment section of this report for
more information.
RISKS
The most salient risks to human rights are forced or bonded labour in the supply chain and, at the farm
level, child labour.
Freedom of association
As per World Governance Indicators (WGI), PUMA’s main sourcing countries have been identified as risk
countries on the Voice and Accountability indicator, which measures freedom of association. Social conflict
and freedom of association breaches could be a risk due to a lack of social dialogue at factories. The risk
could be more upstream in our supply chain when no audit programme is in place or when there is no
monitoring programme at the raw material extraction stage. We support our core Tier 1 suppliers to set up
effective social dialogue platforms in factories and adopt certification such as Better Cotton and the Forest
Stewardship Council to address raw material extraction Human Rights risks.
ILO Freedom of Association Committee has been investigating cases reported by International Trade
Unions on allegations of retaliation, anti-union discrimination and dismissals, and the arrest and detention
of workers for having participated in strike action, in a context where the legislative framework inadequately
ensures the effective recognition of freedom of association, in Bangladesh and Cambodia.
In Bangladesh and Cambodia, there were third-party complaints related to freedom of association
(described in the grievance section). As a countermeasure, all our factories in Bangladesh and Cambodia
are enrolled in the ILO Better Work programme, which provides advisory services and supports factory
management to create a participation committee as a platform for social dialogue.
Discrimination, sexual harassment, and gender-based violence
The Global Gender Gap Index measures gender equality in 153 countries by tracking and ranking a range of
gender-based gaps across society. East Asia is ranked as medium, while South Asia is ranked lower. While
East Asia has been able to reduce educational gender gaps, South Asia is one of the regions where women
are the most disadvantaged in the workplace.
Social dialogue can be used as an effective tool to overcome the under-representation of women and
promote gender equality at work. We support our core suppliers in setting up effective social dialogue
platforms in factories that include women's voices. We also support them in conducting women
empowerment training for factory workers.
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Health and Safety
South East Asia is prone to natural disasters, disease outbreaks, and health risks related to climate change.
In addition, building and fire safety risks have been identified as major risks in the apparel sector, especially
in Tier 1 and Tier 2 facilities. One of the World Health Organization’s key priorities is to strengthen
emergency risk management for sustainable development and to promote health coverage and robust
health systems.
We maintain a high focus on the OHS performance of our core Tier 1 and Tier 2 factories through factory
injury rate monitoring and OHS risk assessment training.
Wage and benefits, living wage, and working hours
Asian sourcing countries have been rated with low scores by the ITUC Global Rights Index.
We support our core Tier 1 factories, with which we have direct business relationships, to provide a fair
income for to their workforce, including all legal wages and benefits along with additional components
which could increase workers' incomes according to fair wage assessments. We launch fair wage
assessments and remediation in collaboration with the Fair Wage Network, for factories which fall short of
paying a living wage and continue benchmarking all our core Tier 1 wage data through the Fair Labor
Association (FLA) wage dashboard.
We also conduct training on root cause analysis to strengthen working hours management at our core Tier 1
factories, so the level of workers’ income depends less on overtime hours workers.
Child and forced labour
As per World Governance Indicators (WGI), PUMA’s main sourcing countries have been identified as risk
countries on Regulatory Quality (RQ) and Rule of Law (RL). The risk could be more upstream in our supply
chain when no audit programme is in place or when there is no monitoring programme at the raw material
extraction stage. We adopt certification to address raw material extraction and Human Rights risks such as
Better Cotton and the Forest Stewardship Council.
In 2021, we conducted a risk assessment on forced labour management through a third party and have
prioritised the traceability of our supply chain as a key focus. In addition, PUMA reviewed the severity
grading of audit findings according to ILO 11 forced labour indicators to prioritize the remediation process.
RISK ASSESSMENT FOR NEW FACTORIES
EiQ is a risk assessment tool for new and existing suppliers. The EiQ Sentinel service scans online and
media sources and provides alerts for supplier controversies relating to labour, health and safety, the
environment, business ethics and management systems. Sentinel alerts provide near-real-time monitoring
of supply chains from public news and information sources (in English and local languages), including local
or international media, NGO reports, government reports, worker allegations and social media platforms.
PUMA checks the EIQ Sentinel whenever it onboards a new factory. For China, we also use the IPE
database to check if any of the new factories have a record of environmental violations. We would then
ensure that factories comply with PUMA standards though a social audit. In 2023, one factory was not
onboarded due to two Sentinel alerts related to potential risks of forced labour.
IPE violations were found in three other factories. One factory was onboarded after it improved as per PUMA
standards and corrected its excessive daily wastewater discharge. The second factory improved and passed
the legally required environmental assessment but could not be onboarded in 2023 since we had not
conducted our social audit, it will be done in 2024. The third factory started production before going through
the legally required environmental assessment and without the approval of the local authorities; they
improved, so these violations were removed from the IPE database, but they could not be onboarded since
we had not completed our social audit within 2023.
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For PUMA’s existing supplier factories, 15 Sentinel cases were found as of September 2023. Eight cases
were from factories that had already been deactivated, and thus have no production for PUMA anymore. Five
cases were related to insufficient payments, health and safety, and waste management, which were
addressed through remediation action and the issues were resolved. The other two cases involve allegations
that have not been confirmed by our investigations.
RISK ASSESSMENT FOR EXISTING FACTORIES
In 2021, PUMA adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by country, commodity and issue
• Complete risk assessments for suppliers, factories, and sites
• Manage risks that are material to each supplier, factory or site
In 2023, we uploaded 676 audit results (2021-2022) to the EiQ tool. This tool shows the combined risk level
based on geography, product, and audit result. We evaluated the countermeasures we have in place in the
factories identified as high-risk facilities in this tool. 28 factories were identified as high-risk mainly due to
legal violations such as missing building safety permits, systematic excessive overtime or working hours
management. 16 factories are from Tier 1 suppliers, one is a warehouse, and 11 are Tier 2 factories. All of
them are under regular social compliance monitoring. 29% (eight) of these factories are under the ILO
Better Work Programme which offers a factory assessment and advisory services for remediation, 21%
(six) of these factories are covered by Worker Voice mobile app, through which workers can raise their
concerns to factory management (such concerns are escalated to PUMA when factories do not respond
timeously). This mobile app has also the functions to conduct workers survey and launch e-learnings for
workers. We also provided Root Causes Analysis training for 25% (seven) of the factories. One supplier in
China has been going through a capacity building programme since 2022 at PUMA’s expense to strengthen
its management system. In 2023 we saw a significant improvement as per the consultant company Elevate,
which we further explained as a case study.
In 2023, 75% (21 out of 28) of factories improved. Measures included obtaining building safety or fire safety
certificates, installing sufficient fire safety equipment, and ensuring that emergency exits were
unobstructed. Some factories improved working hours management after they joined the Root Cause
Analysis training that we provided or paid back insufficient overtime compensation. As a result, these 21
factories are no longer considered as high-risk. The four other factories are still implementing their
improvement plan and working to obtain legally mandated certificates and improve working hours
management. Three out of four factories have already joined ILO Better Work; for the one factory which is
outside of scope of ILO Better Work, we expect them to remedy the critical violations by 2024. The other
three factories are to be deactivated.
In 2023, PUMA’s Supply Chain Sustainability Team added one full-time staff member in Brazil. We now have
local team members in nearly all high-risk sourcing countries to support the implementation of our
standards. In Pakistan, with the launch of the Better Work programme, we have registered all factories in
scope to mitigate risks. We plan to add one full-time staff member to support Bangladesh and Pakistan in
2024. For the rest of the high-risk countries such as the Philippines, Mexico, or South Africa, we do not have
a local team member due to the total number of suppliers being less than ten. For these locations, we
work with third-party auditing firms to conduct regular social compliance audits.
Based on all these actions, we aim to mitigate the risks identified through this risk assessment.
WORKERS SURVEY
In 2020, PUMA launched the Worker Survey Programme to get workers’ feedback in eight countries and to
assess their satisfaction with the factory work environment through a mobile survey app.
PUMA operates multiple worker voice channels. The third-party worker engagement platforms cover 89
suppliers and 201,579 workers. 29 non-strategic factories in three countries (Bangladesh, Vietnam and
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China) also used the platforms in 2023. To review the design and efficiency of PUMA’s grievance system as
per the criteria of the UN Guiding Principles on Business and Human Rights, we collected feedback
from factory workers in 2023.
The UN Guiding Principles on Business and Human Rights set the following criteria to assess the
effectiveness of non-judicial operational-level grievance mechanisms: legitimacy, accessibility,
predictability, equitability, transparency, rights-compatibility, a source of continuous learning, and based on
engagement and dialogue. In 2023, to assess our hotline against these criteria, we surveyed 14,823 workers
at 45 factories in China, Cambodia, Vietnam, Indonesia, the Philippines, Turkey, Pakistan and Brazil.
• Legitimacy (enabling trust from the hotline users): 94% of workers agreed they can trust the PUMA hotline
• Accessibility (no barrier to access for users): 80% of workers know where to find the PUMA hotline
phone numbers and email, and 92% confirmed it is available in a language they understand
• Predictability (users are clear on the procedure): 75% of workers responded that they know what the
complaint procedure is and 90% understand their complaint will be investigated
• Transparency (keeping parties informed about progress on the issue): 91% of workers with unresolved
complaints (at the time they responded to the survey) said they were aware of the status of their cases
The Rights-compatibility criteria (ensuring that outcomes and remedies accord with internationally
recognised human rights) was not evaluated. We shall assess it in the future.
The survey results also showed that workers in Brazilian factories did not know where to find the PUMA
hotline, nor did they understand the procedure (only 25% responded positive). As a follow-up action, we will
conduct further training for workers in Brazil about our grievance mechanism and translate our video
material that explains the PUMA hotline procedure into Portuguese in 2024.
Lastly, to evaluate the effectiveness of remedial action, workers were asked systematically whether their
complaints were resolved. Of the 15% of surveyed workers who had used the hotline, 65% said they had filed
a complaint, with a complaint resolution rate of 96%.
↗ T.04 HOTLINE WORKER SURVEY - 2023
China
Cambodia
Vietnam
Indonesia
Philippines
Turkey
Pakistan
Brazil
Global
Can you access a
phone in order to call the
hotline?
76%
93%
94%
74%
92%
82%
97%
66%
86%
Do you have access to a
phone or computer to
send a complaint via
email?
57%
94%
92%
83%
92%
85%
97%
77%
82%
Can you use Zalo,
WeChat, Viber, QQ,
Whatsapp etc?
87%
96%
97%
99%
92%
97%
99%
83%
94%
Is the hotline available in
a language you
understand?
92%
88%
94%
93%
98%
87%
98%
89%
92%
PUMA’s hotline processes and complaints' numbers, statuses and outcomes are publicly available for
transparency. Our Rules for the Complaint Procedure is available for download on our website and details
about workers and third-party complaints are shared in our Annual Reports. Through regular evaluation of
our grievance mechanism, including feedback from factories' workers, we aim to collect information to
support continuous improvement of our due diligence and grievance mechanism procedure, in line with
these criteria that the mechanism should be a source of continuous learning and based on engagement and
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62
dialogue. For equitability, we are seeking to ensure that complainants can access a network of public and
private organisations or services to engage through the PUMA hotline on fair, informed and respectful
terms. In 2024, we plan to map local relevant organisations and institutions together with our suppliers, to
identify and share contacts of emergency care, psychological support or the judicial system, for any factory
worker in need who has raised a complaint.
↗ T.05 WORKER SURVEY 2021 – 2023
1
Year
Number of Factories
Number of Workers
2021
48
13,557
2022
68
21,526
2023
45
14,823
1
From 2021 onwards we have used Gallup’s methodology to define the sample of production workers of each factory, based on
a 95% confidence interval and a margin of error of plus or minus 5%.
WOMEN’S EMPOWERMENT
Training women about their rights and empowering them to advance their careers is key to achieving
gender equality, where both men and women have equal power and opportunities for education, healthcare,
economic participation and personal development.
60% of workers producing PUMA goods are women and 50% of factory managerial positions at our core Tier 1
suppliers are filled by women. PUMA initiatives support suppliers in reviewing existing policies and practices
or establishing new ones for women’s empowerment. We believe that collaboration within the industry and
with NGO experts in women’s empowerment is key to avoid duplication and provide the right expertise.
Since 2021, the accumulated participants of sexual harassment prevention training amounts to 222,933
workers, accounting for more than 148,642 training hours.
In 2023, we expanded the e-learning course on Sexual Harassment Prevention at the Workplace via Micro
Benefits to 50,478 workers in 37 factories in China and Vietnam. Another 4,418 workers at eight factories in
Cambodia and Indonesia completed the Better Work e-learning course on Discrimination and Elimination of
Violence and Harassment at Work via the mobile phone app WOVO, covering 51% of employees in these
factories.
China’s textile and apparel industry employs approximately 20 million people, over 60% of them female,
comprising many domestic migrants at the age of marriage, childbirth, or childcare. These workers have
limited education in personal development, childbirth and family care, and often must juggle their work at
the same time. Therefore, the China National Textile and Apparel Council (CNTAC) has launched the
initiative to build Family-Friendly Factories in the Chinese textile and apparel industry. This initiative is
supported by UN Women and UNICEF. In 2023, we partnered with CNTAC, piloting the Family-Friendly
Factories project at three core Tier 1 factories with 5,566 workers in total.
The programme’s objectives are:
• Understand how Chinese textile and apparel companies implement family-friendly policies, as well as
their challenges in implementing a gender equality system
• Develop guidance for these companies to promote family-friendly policies at the workplace
• Assist pilot companies in establishing family-friendly mechanisms in line with their existing human
resources management system
• Promote and pilot best practices across the industry
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In 2023, CNTAC conducted an onsite baseline assessment at three PUMA factories through workers surveys
and interviews about their perception of their factory’s current policies and practices, and their challenges
regarding family care. The project team also trained 207 workers (73% female) on gender equality, family-
friendly policies, work-life balance, and parent-child education. The three factories were provided with an
improvement plan to review their internal policies. PUMA’s Sustainability Team is working closely with them
to implement these improvement plans by the end of 2024.
PUMA encourages suppliers to join the ILO Better Work programme. The Better Work’s factory
improvement process includes three integrated services: assessments, follow-up advisory services and 15
training days per year. In 2023, 32 management staff (72% female participants), from 17 factories in
Bangladesh, Cambodia, Indonesia and Vietnam joined 19 training sessions on topics including gender
equality, sexual harassment and prevention of discrimination and gender.
The World Benchmarking Alliance (WBA) Gender Benchmark evaluates 112 of
the largest apparel, food and agriculture companies globally on their
responsibility to drive and promote gender equality in their entire value chain.
In the 2023 Gender Benchmark PUMA ranked eighth out of 112 companies and
sixth in the apparel sector with a score of 43.5 out of 100. 2023 was the first
time PUMA participated in the Gender Benchmark.
SUPPLIER SCORECARD
In 2023, PUMA conducted calls with 58 core Tier 1 factories to review the social scorecards for each of their
factories performance as of end of 2022, which included:
• Audit rating
• Participation in supplementary worker voice tools offered by third parties
• Workers’ training on women’s empowerment/sexual harassment
• Factory's injury rate compared to PUMA core Tier 1 factories’ average rate and 2023 goals
• Factory's average weekly overtime hours vs. PUMA core Tier 1 factories’ average
• Factory’s fair wage performance compared to living wage benchmark
• Whether the factory has freely elected worker representatives against 2025 goals
During these meetings, we reviewed the scorecard and discussed next steps to address identified gaps.
Most suppliers agreed with the scorecard and the action plan to achieve PUMA’s 2025 sustainability targets:
• Worker voice: 57 out of 58 factories are covered by third-party worker voice platforms (mobile app) and
one supplier in Brazil was added to PUMA’s 2023 strategic partner list. We discussed launching a third-
party worker engagement platform. Some suppliers shared their concerns about the functionality
of third-party worker engagement platforms, we are looking into it to further improve or find an
alternative.
• Fair wage: The discussion was based on the factories 2021 wage data; three factories were suggested to
conduct a Fair Wage Assessment as their wage level is below the industry or GLWC benchmark, which
was conducted in 2023.
• Women’s empowerment: Except for our new strategic supplier in Brazil, the rest of our core suppliers
provided sexual harassment prevention training to workers after the managerial staff had been trained
by PUMA. In 2023, 41 out of 58 factories continued the sexual harassment e-learning via the third-party
worker engagement platforms, and three Chinese factories joined a pilot led by CNTAC on promoting
gender equity.
• Worker representation: During these meetings, we encouraged 20 factories which had not freely elected
workers’ representatives, to either join the ILO Better Work programme, which help suppliers to set up a
Worker-Management Committee or join PUMA’s programme when the factory is not under the scope of
Better Work. Four of them joined the Better Work programme in 2023 or will join in 2024. In 2023,
PUMA’s Sustainability Team members in China, Vietnam, Bangladesh and Indonesia had been trained by
Timeline Consultancy, a China-based consultancy company, on guiding factories not in scope of the
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64
Better Work programme to have freely elected worker representatives and to build a dialogue
mechanism. The 16 factories agreed to join PUMA’s Worker Representation Programme.
SOCIAL COMPLIANCE
PUMA’s Code of Conduct is an integral part of our supply contracts. All PUMA suppliers sign a legally
binding “Declaration of Principles” to comply with the PUMA Code of Conduct. PUMA requires all vendors,
their subcontractors, and their suppliers to comply with this Code of Conduct, as well as PUMA’s Social and
OHS handbooks. These compliance expectations are verified through regular audits. The frequency of audits
is based on a factory’s previous audit results: A-graded factories are re-audited after 24 months, B+ after
18 months, B- after 12 months and C-graded after six months. Warehouses graded A, B+, B- are re-audited
after 24 months, C-grade after 12 months and D after six months. For factories with a D grade, including
Better Work Factories, Zero Tolerance (ZT) issues need to be corrected between two and six months.
Potential new factories will not be authorised to produce PUMA products until the factory can be rated
A or B. Regardless of the factory grade, all issues identified during audits need to be remediated as part of a
corrective action plan.
Since 1999, all direct PUMA factories (Tier 1) have been frequently audited for compliance with the ILO Core
Conventions and basic environmental standards. Each year we collect between 300 and 500 audits or
assessment reports issued through PUMA’s compliance programme, the ILO Better Work Programme, our
industry peers’ compliance programmes or independent experts accredited by the Social and Labour
Convergence Programme (SLCP). We have also included our most relevant material and component
suppliers (Tier 2) and key priority warehouses in our audit programme. Through collaborative efforts with
the sourcing team, we mapped more than 200 non-core Tier 2 suppliers in 2022. While one-third use FEM
(Facility Environmental Module) for other brands, only 13 have had a social audit. We converted these audit
reports in our grading system. In 2023, we reminded all suppliers that the use of undeclared sub-
contractors is a Zero Tolerance issue, as per PUMA standards. We asked them to self-declare their Tier 1
subcontractors used for PUMA production. 66 Tier 1 subcontractors were declared, 26 (19 for the first time)
had an audit report that we converted into PUMA‘s grading system.
In 2023, 454 Tier 1 suppliers, 92 Tier 2 suppliers and three warehouses were audited. 581 audit reports from
these 549 factories were collected to safeguard workers’ rights to more than half a million workers
(656,473).
All PUMA suppliers are required to display our Code of Conduct in factories producing PUMA products,
materials or components. This contains the contact details of the PUMA Sustainability Team as a whistle-
blower hotline. The number of grievances received and solved, as well as the most frequent type of
grievances are shared in this report.
Furthermore, PUMA is a member of the Fair Labor Association, which regularly audits and accredits
PUMA’s compliance programme for compliance with the Fair Labor Association’s Code of Conduct. This
ensures that PUMA has the systems and procedures in place to successfully uphold fair labour standards
throughout its supply chains and mitigate and remediate violations. As an FLA member, PUMA has agreed
to subject our supply chain to independent assessments and monitoring as part of an organisational
commitment to upholding fair labour standards through transparency. FLA publishes the results of these
assessments to encourage an open and honest dialogue about the conditions that workers face, ensure
PUMA’s accountability, and help consumers make more informed decisions about the products they buy.
View the public assessment results here: PUMA, SE – Fair Labor Association.
A comprehensive explanation of our compliance programme for suppliers (including grievance mechanisms
and case studies) can be found in our Sustainability Handbook for Social Standards. Our Social Handbook
explains the procedure for factory monitoring programmes (section 3) and our standards. This handbook is
reviewed on a regular basis and our suppliers receive regular training on our standards and monitoring
process. We launched the e-learning via Elevate’s EiQ Learning platform in April 2023. All suppliers were
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65
invited to complete the training course. 1,035 participants from 557 factories passed the e-learning in 2023,
representing 85% of PUMA’s active factories.
PUMA’s supplier factory list is disclosed on our website. It includes details such as the factory name,
address, product category, headcount range, the percentage of female workers, percentage of foreign
migrant workers and freely elected worker representation. PUMA also publishes its factory list in the Open
Supply Hub platform.
AUDIT PROCESS
Our audit starts with briefing the factory management and worker or union representatives on PUMA
standards, the audit process and its scope. In 2023, 94% of the audits conducted included a trade union
representative or workers’ representative during the audit’s opening and closing meetings (when closing
meetings take place during factory working hours).
We have a team of compliance experts in all our major sourcing regions who regularly visit our core
manufacturing partners. We work with external compliance auditors and with the ILO’s Better Work
Programme. Each PUMA supplier factory must undergo a regular compliance audit every six to 24 months
based on their audit rating and all issues identified need to be remedied as part of a corrective action plan.
Interviews with workers, workers’ representatives or union representatives are crucial for understanding
workers’ perspectives on workplace standards, the atmosphere at factories and protecting vulnerable
workers from any work that is likely to cause harm. All interviews with workers are conducted on-site (no
offsite interviews).
Around 79% of active factories were audited in 2023. Factories not audited in 2023 either had an audit that was
still valid because of their grading, were waiting for Better Work assessment or were located in Ukraine.
To avoid duplication and prevent auditing fatigue, in 2023, we increased the percentage of shared
assessments to 67% (59% in 2022). We will further increase our use of SLCP-based assessments
to 350 factories in 2024. We believe that SLCP is an ideal tool for building long-term relationships with
suppliers and supporting them to take ownership of their social and labour data. PUMA is a member of the
ILO Better Work Programme and uses Better Work assessment reports in lieu of the PUMA compliance
programme. PUMA also uses FLA-accredited brands' reports as well as some other brands’ audit reports in
lieu of the PUMA compliance programme. We aim to use external reports converted to PUMA standards for
up to 80% of our factories by the end of 2025.
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↗ T.06 AUDIT RESULTS 2021 – 2023
2023
2022
2021
T1
T2
Warehouse
T1
T2
Warehouse
T1
T2 Warehouse
A (Pass)
120
24
63
17
75
6
B+ (Pass)
154
27
1
157
41
144
23
2
B- (Pass)
152
38
2
144
39
2
155
46
1
C (Fail)
18
2
19
11
1
16
7
D (Fail)
10
1
9
4
3
2
Total Active+Inactive
audited factories
454
92
3
392
112
6
392
82
3
Total active factories as of
Dec 31st, 2023
564
120
7
516
128
10
445
99
6
Number of employees
572,541
81,756
2,176 546,286
82,070
2,229
Audit coverage %
80%
77%
43%
76%
88%
60%
88%
83%
50%
Total active+inactive
audited factories
549
510
477
Pass/Fail %
94/6
97/3
100
93/7
87/13
33/67
95/5
91/9
100
↗ G.07 AUDIT RESULTS 2021 – 2023
1
1
Total factories audited: 477 in 2021; 510 in 2022; 549 in 2023
16.6%
35.8%
42.3%
4.8%
0.4%
15.7%
38.8%
36.3%
6.3%
2.9%
26.2%
33.2%
35.0%
3.6%
2.0%
A
B+
B-
C
D
2021
2022
2023
PUMA Annual Report 2023
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67
AUDIT RESULTS AND FINDINGS
In 2023, we continued following up and training the factories with low performance; as a result, 67 factories
were upgraded to A or B+. 144 factories were audited for the first time in 2023 as per our strategy to
increase local-for-local production and to scale up our social monitoring programme to non-core Tier
2 suppliers (11) and Tier 1 sub-contractors (19).
In total, 36 factories failed the audit, (31 Tier 1, five Tier 2); 14 were deactivated due to low performance. Five
were re-audited in 2023 and passed the audit; 17 factories will be re-audited in 2024 since they have six
months to improve. 19 out of 36 were new factories, 12 factories were not onboarded so we did not enter into
any business relationship with them, four were re-audited and improved to a passing grade, the three other
factories (two non-core Tier 2, one retail furniture supplier) were audited for the first time in 2023 as we
expanded our audit scope; they all committed to improve and they will be re-audited in 2024.
Out of the 11 factories graded D in 2023, seven factories were deactivated. Four are still active as at the end
of 2023, as progress is on-going. Two out of these four D-graded factories had Zero Tolerance issues on
transparency and payment below minimum wage which were uncovered in late 2023. They corrected these
issues within 2023, as one paid back minimum wages. The other factory stopped subcontracting home
workers, recruited workers and communicated their policy change to all managerial staff and workers;
several critical issues are still under remediation and should be corrected in 2024. For the other two D-
graded factories, since the factory management submitted reliable corrective action plans, we will follow up
on the remediation by mid-2024.
↗ G.08 2022-2023 NUMBER OF MOST FREQUENT FINDINGS
1-2
1
Top 10 findings in 2023 active factories only excluding newly audited factories in 2022 and 2023
2
Including converted reports
G.08 shows the 10 most frequent audit findings from PUMA’s audit programme, including both own and
external converted reports.
Initial assessments are excluded from this graph. 144 audits were initial assessments (meaning no audit
was conducted previously) in 2023, 25% of the total number of audits performed over the course of the year.
These suppliers are not yet familiar with our standards. In 2023, we provided an e-learning on our social
91
48
57
64
24
11
7
5
3
20
87
65
59
46
26
9
9
9
9
8
2023
2022
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68
standards, which helped newly onboarded suppliers to better understand our expectations. As a result, the
pass rate of newly onboarded suppliers in 2023 was 4% higher than in 2022 (2023: 87%; 2022: 83%).
Working hours management: In 2022 we provided working hours management training for all Tier 1
factories. A root cause analysis workshop was held with selected core suppliers in both 2022 and 2023 to
explore opportunities for improvement. Factory management reviewed and strengthened their policy and
working hours monitoring system. They gained a deep understanding of how to conduct a root
cause analysis. We developed an action plan to address prioritised root causes of overtime hours. We
noticed improvements as there was a decrease in the number of audit findings in systematic excessive
overtime (reduced by 4.6%), overtime compensation (reduced by 3.2%), and working hours management
(reduced by 0.6%). We notice a decrease in the average overtime hours at our core Tier 1 factories compared
to 2022 from 7.7 to 5.3 hours in 2023, but it can be due to a decrease of our order book due to 2023 global
macroeconomic situation, which led to a change in customers' ordering behaviour.
Wages and overtime: Among issues related to wages and/or overtime, 31% of the corrective actions were
implemented and these issues were resolved in 2023, which is 20% higher than the 11% rate in 2022. We
expect more progress in 2024 as 31% of audits were conducted at the end of 2023, these factories involved
will receive a follow-up audit in 2024 to validate their improvements.
Social security: 100% of workers are covered under social security among all our core Tier 1 suppliers,
except in China where this is the case for 80.4% of workers. We plan to further explore how to support
suppliers to remedy those issues via in-person workshops in 2024. Improving working hours management,
following up with suppliers to obtain legal permits, and increasing social security coverage will continue to
be a focus of our efforts.
Transparency: Four transparency issues were found in 2023. One new factory with one transparency issue
along with other violations such as insufficient benefits and several OHS findings was not onboarded as a
PUMA supplier; two factories with one transparency issue each provided consistent records for review after
we emphasised PUMA’s zero tolerance policy on transparency. These records were verified by PUMA. One
transparency issue in one factory detected in late 2023 remains open; we will follow up in early 2024.
Freedom of association: The four open issues related to Freedom of association identified in 2022 were all
closed through follow-up with the management or under the Better Work programme. Five audit findings
related to Freedom of Association breaches were identified in 2023, such as the dismissal or poor treatment
of union members and delayed union elections. As of today, three issues were closed; one is still open
as there is an on-going mediation process between the management and trade union workers; the other
issue remains open, and concerns the factory HR manager taking dual leadership roles in
both management and union. This factory is working with Better Work Vietnam for remediation.
Women’s rights: PUMA is committed to respecting women’s rights as per the Convention on the Elimination
of Discrimination Against Women and expects suppliers to commit to and respect women’s rights. In this
context, we carefully monitor working conditions for women. In 2023, we identified 38 women-related audit
findings about missing benefits for nursing workers, unadopted conditions for pregnant workers or toilets
not maintained in clean and sanitary conditions. 15 of them were closed through follow-up with the factories
or via the Better Work programme, three findings will not be followed-up on because the factories
have been deactivated, 20 are still under remediation and are being followed-up. One violation was related
to unvoluntary overtime and has been corrected as per a Better Work progress report.
Freedom of movement: One audit finding was identified related to restricted freedom of movement. As a
result, the factory management issued warning letters to all relevant supervisors and conducted training to
avoid similar situations in future. We will verify these actions onsite in 2024. No case was found related to
workers' passports nor other identity and personal documents being retained.
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Wage payments: We identified 16 violations regarding delayed wage payments, 12 of them were closed; two
findings will not be followed-up because the factories were deactivated; for the two open findings, one
factory is working with Better Work on remediation, and another factory took appropriate actions so no
wage payments will be delayed. We will verify that proper actions were taken on-site in 2024.
Beyond auditing, we track social key performance indicators such as average payments vs. minimum wage
payments, overtime hours or coverage by collective bargaining agreements. This data is reported
under the Fair Income target section.
SUPPLIER TRAINING
To ensure that our suppliers understand the requirements set by PUMA as well as international due
diligence regulation and standards in the garment and footwear industry, PUMA organised multiple training
sessions in 2023, including:
• In-person or virtual suppliers round tables to share updates on PUMA standards and industry
best practices, elaborate on the German Due Diligence Supply Chain Act by industry experts; CNTAC in
China and VITAS in Vietnam.
• Training factory management on Accident Prevention and Reporting, who will then support us to achieve
the goal of training 100,000 workers on this subject.
• Root cause analysis training for strategic suppliers, so that they can develop corrective actions to resolve
their audit findings by addressing their root causes.
• Customised e-learning on Social Standards, to help suppliers, especially those newly onboarded, to
better understand PUMA's expectations.
• PUMA’s expectations to suppliers regarding our Code of Ethics.
We launched the e-learning via Elevate’s EiQ Learn platform in April 2023, and all suppliers were invited to
complete the training. 1,035 participants from 557 factories passed the e-learning in 2023, representing 85%
of PUMA’s active factories. We plan to add this e-learning to PUMA’s website, which will allow users, new
factories and workers, to access the course at any time.
↗ T.07 SUPPLIER TRAINING
Meeting
Topics
Number of
factories
% of suppliers
trained*
Number of
participants
Supplier in-person round table or
virtual meetings
Sustainability updates,
best practices sharing, German
Supply Chain Act. etc.
Average. 532
per round
(2 rounds)
81%
Average.
1,122 per
round
(2 rounds)
Code of Ethics**
536
82%
1,230
OHS Accident Prevention and
Reporting training
Training of Trainer to core Tier
1 supplier management on what
and how to do OHS Accident
Prevention and Reporting
102
16%
290
Root Cause Analysis training
In depth review of root
cause analysis methodology to new
core Tier 1 and core Tier 2 factories
71
11%
169
PUMA Social Standards e-learning
PUMA social standard handbook e-
learning course via EiQ Learn
platform to active factories’
management
557
85%
1,035
*
% of factories joined the training based on total 656 factories. The 656 factories include PUMA core Tier 1 and Tier 2, non-
core Tier 1, stichd factories and licensee factories.
** Included to second supplier in-person round table or virtual meetings.
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↗ CASE STUDIES
Capacity Building in China
With Elevate as a partner, a one-year capacity building programme was carried out to help the
supplier and its factory staff to identify key gaps in the factory’s management system and provide
them with a toolkit and expertise to drive sustainability-related improvements. Through top
management commitment, training and capacity building, regular review of metrics and impact
assessments, the factory understood the importance of being transparent with PUMA; established a
proper grievance mechanism, established an effective working time recording system; started to use
internal inspection tools to manage CSR performance independently and corrected most (91.7%) of
the EHS findings.
To further improve it was recommended that the factory should enhance compensation and benefits
payment systems, conduct follow-up investigations of workers’ suggestions and have a proper
mechanism to answer these suggestions.
GRIEVANCE CHANNELS
PUMA works towards providing access to functioning grievance channels throughout its supply chain.
Where we do not have direct operations, we seek out partners who can run such complaints mechanisms,
according to the UN Guiding Principles. At the cotton farm level, the Better Cotton Grievance procedure
provides a system for anyone, including third parties, who engages with its activities, people or programmes
to raise a complaint relating to any aspect of Better Cotton and its activities.
We operate multiple worker voice channels to reach more than half a million workers at our Tier 1 and core
Tier 2 factories. If workers are not satisfied with the responses offered by the factories via their respective
internal grievance system, we encourage them to use the PUMA hotline to raise complaints or request
consultations. Hotline contact details are published on our Code of Conduct posters, displayed at every
audited factory globally. We also use WeChat, Zalo, Facebook and other social media channels to connect
with workers and have established more formalised compliance and human resources apps at selected core
suppliers.
The third-party worker engagement platforms cover 89 factories (201,579 workers), which represents more
than 80% of our production volume. In 2023, 1,544 feedback messages were received through the
MicroBenefits and the WOVO platforms in China, Indonesia, Pakistan, Philippines, Turkey, Cambodia and
Vietnam, as well as the Amader Kotha Helpline in Bangladesh. Of the 1,544 messages, 41 cases were
escalated to PUMA as the factory did not respond within the 48-hour timeline. PUMA engaged with the
factories’ management to address workers’ concerns. All other concerns not escalated to PUMA were
handled and resolved directly by the suppliers.
In 2023, we engaged with a local hotline, Hamari Awaz who will provide all workers in factories producing
for PUMA in Pakistan with access to a local hotline in early 2024.
In 2023, 107 workers’ concerns were raised through PUMA’s hotline across eight countries. Together with
our suppliers, our team was able to resolve all these cases.
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In 2023, to meet its obligations under the German Act on Corporate Due Diligence Obligations in Supply
Chains (LkSG), PUMA published its Rules for the Complaint Procedure. PUMA’s own employees and the
employees of PUMA’s business partners can submit complaints in connection with human rights or
environmental risks and violations, as well as violations of PUMA policies via the following channels:
• PUMA’s electronic whistleblowing platform
• Telephone numbers of the PUMA Sustainability Team (“PUMA Hotline”)
• Third-party platforms made available to factory workers by the factories
Complaints may be made anonymously and all information regarding the complaint is treated as strictly
confidential and only shared on a need-to-know basis or if required by law. All complaints received are
acknowledged within seven days and PUMA shall conduct a comprehensive investigation without delay.
PUMA will also share the outcome of the investigation with the party making the complaint.
PUMA shall review the effectiveness of its complaint procedure at least once a year, or on an adhoc basis if
PUMA expects a significant change or increase in risk exposure in PUMA’s own operations and at PUMA’s
business partners. We aim to translate the Rules for the Complaint Procedure into 40 languages in 2024 to
ensure it is accessible for end users in PUMA’s supply chain.
↗ T.08 WORKERS’ COMPLAINTS 2020 – 2023
Workers’ complaints
2023
2022
2021
2020
Total received – external channels (third-party platforms)
1,544
2,006
3,132
1,021
Total received – PUMA Hotline
107
159
223
101
Total confirmed- PUMA Hotline and third-party platforms
1,443
1,877
3,165
984
Total received – PUMA Hotline and escalated to PUMA via third-party
platforms
148
173
262
127
Resolved - PUMA Hotline and escalated to PUMA via third-party platforms
148
172
261
126
Not resolved - PUMA Hotline and escalated to PUMA via third-party
platforms
0
1
1
1
Resolved (%)
100%
99.4%
99.6%
99.2%
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↗ G.09 NUMBER OF MOST FREQUENT GRIEVANCES RAISED IN 2023 THROUGH PUMA HOTLINE
AND THROUGH THIRD-PARTY PLATFORMS ESCALATED TO PUMA
WORKER COMPLAINTS
The most frequent areas of concern raised by workers remain as fair compensation, their employment
relationship, and excessive working hours. Most workers’ concerns about wages and benefits are mainly
due to their misunderstanding of wage and benefit calculations. We asked factories to proactively talk to and
train workers on wage and benefits' calculation methods. Regarding the employment relationship topic,
many cases are about workers wishing to resign without following the legally required notice period.
We asked factory management to discuss solutions with their employees.
In any country, when workers complain about working during public holidays or overtime hours, PUMA
would engage with factory management, to adjust the production schedule and to make sure overtime is
voluntary and properly communicated with workers. Furthermore, PUMA provided training to these
factories on working hours management, and overtime root cause analysis to prevent excessive overtime.
Below is a case study of the PUMA Hotline, which explains how we followed-up with our supplier to close
the single remaining open case of 2022.
39
31
20
11
11
10
5
3
2
2
6
2
3
2
1
Resolved
Not-Resolved
Unaccepted
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↗ CASE STUDIES
PUMA Hotline
A worker from a footwear factory in Vietnam called the PUMA Hotline in September 2022 regarding
the subsidies sponsored by the government according to the Resolution No. 68/NQ-CP dated on
July 1
st, 2021. Under this regulation, employees who were under contract suspension or termination,
or unpaid leave between May 1
st, 2021 and December 31
st 2021, and pregnant or taking care of children
under six years old are entitled to one of government subsidies. The complainant submitted all the
necessary documents to the factory to apply for this government subsidy but did not receive
any updates.
PUMA immediately contacted the factory. The factory explained that due to being busy with Covid
prevention measures and high levels of absenteeism in January 2022, they missed the deadline to
submit the documents to the local authority. In total 2,032 workers failed to receive a total amount of
about $ 115,000. Despite the factory’s efforts to follow-up with the local authority for the payment,
there was no positive response.
PUMA encouraged the factory to discuss with the Trade Union representatives to find a solution. In
July 2023, the Trade Union and the factory reached a consensus so the factory would pay 70% of the
subsidy, $ 78,388 to make up for the unpaid subsidy. PUMA verified that an instalment of about
1,207) as they had left the
factory. We are still engaged with the factory management regarding the remaining 30%.
THIRD PARTY COMPLAINTS
We continued following-up on the six open third-party complaints in 2022. Five related to freedom of
association were resolved through active engagement with factories, union and other stakeholders, with
union representatives reinstated or compensated in agreement with the unions involved. One of these five
cases was settled in collaboration with the Fair Labor Association and other brands, more details can be
found in case study below. Another complaint is about workers’ wages in Mauritius, which was followed-up
under the umbrella of the Fair Labor Association and in collaboration with other brands: migrant workers in
Mauritius received less than a minimum wage after the dormitory fees were deducted from their salary.
Based on the inspection report of local labor authority the practice is legal. In 2024 we will continuously
engage with the FLA and other stakeholders to find a collective solution.
In 2023, we received 15 third-party complaints from external organisations, 11 of which have been resolved.
Nine cases were related to freedom of association breaches, eight out of these nine cases were resolved
through active engagement with factories, unions and other stakeholders. The union representatives were
either reinstated or compensated in agreement with the unions involved. One case is still going through the
mediation process between management and the trade union.
Three cases involved wage and benefits issues; one of them is the request from the Bangladesh Union
Federation to provide support on their minimum wage demands. Upon receipt, PUMA actively engaged with
ILO Better Work and the Fair Labor Association. We published our Position on our website, and co-signed a
letter to the prime minister with other brands, through Fair Labor Association in November, to support
trade unions. Another two wage and benefits cases are still under investigation.
Two cases relate to NGO reports on working conditions for supply chain workers in Pakistan and Cambodia.
For both reports we engaged with ILO Better Work and the reporters. Details are provided under Pakistan
and Cambodia paragraphs below.
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In May 2023, a trade union requested the dismissal of two managers at a factory in Cambodia because they
thought they were responsible for the reduction of orders, among other concerns. The management and
union had several meetings to discuss the concerns. The management accepted all the trade union’s
concerns and took action, except for the dismissal of the two factory managers, which the trade union
agreed to retract.
Pakistan
In 2023, Labour Behind the Label published a Report on labour rights in Pakistan regarding issues such as
no payment of living wage, no employment contract, leave being denied or unpaid, child labour, no social
security, harassment, health and safety issues, fire safety risks and freedom of association breaches.
PUMA has investigated the details of the report and engaged with the reporters to understand the
methodology used. The report relates to factories located in Karachi, Faisalabad, and Lahore. While PUMA
does not have a business relationship with any suppliers in these regions, our subsidiary stichd, does have a
business relationship with four factories in this region, two of which are included in the report.
Three out of the four factories in the mentioned areas were audited in 2023, while one factory was audited in
2021 with a rating still valid in 2023. As a follow-up in 2023, PUMA conducted a full unannounced
assessment of all four factories through a different third-party company. As a result, three of the factories
were downgraded. We are closely following up on progress to address these newly identified violations
and all factories producing PUMA products that fall within the scope of the Better Work programme are now
enrolled in the Better Work programme. Additionally, all workers of factories producing for PUMA in
Pakistan will have access to a local hotline, Hamari Awaz.
Better Work Pakistan will also provide a social dialogue programme, as well as leadership capacity building
initiatives and training for female workers. Other services will include the ILO’s occupational health and
safety approaches, a factory improvement toolkit and productivity focused training. Additionally, PUMA
signed the ACCORD Pakistan in March 2023 for all factories producing PUMA and stichd products.
Cambodia
In 2022 we received five complaints concerning three Cambodian factories, about potential breach of
freedom of association rights. Three were resolved in 2022 and two in early 2023. We worked to find the best
solution related to these concerns, facilitating mediation meetings between workers’ representatives and
factory management, partnering with Better Work Factories Cambodia and/or with other brands producing
in the same factories. It took three to five months to solve these complaints.
Despite all our efforts, we received five complaints about freedom of association from Cambodia in 2023.
Four cases were resolved through open dialogue and facilitated mediation meetings between factories and
unions. One case is still under mediation or investigation.
We continued to work with Better Factories Cambodia (BFC) and hosted a training series from April to
August 2023 for all Cambodian factories producing PUMA products. 183 participants from 27 factories’
management teams, shop stewards and union representatives attended the training. As a lesson learned
from training conducted in 2021, we added one exclusive session for factory decision-makers in Chinese in
addition to a session conducted in Khmer for workers representatives and trade union leaders.
The aim of the training was to provide participants with a better understanding of:
• Rights and obligations of the employer, unions and worker representatives
• Managing communication and employment contract termination such as: resignation, dismissal, and
retrenchment.
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As per the BFC feedback, as result of the training participants confirmed they gained a better understanding
about Freedom of Association and their roles and responsibilities. All 27 factories submitted a Corrective
Action Plan after the training. We will verify the implementation of each action plan in early 2024 according
to the five KPIs established by BFC. They are described below:
1. Conduct regular meetings between the employer, union and shop stewards to raise and address any
concerns in the workplace on weekly/biweekly/monthly basis.
2. Develop/review a Freedom of Association (FoA) policy in consultation with the unions and shop stewards
and implement this policy accordingly.
3. Develop/review a Grievance Handling policy in consultation with the unions and shop stewards and
implement this policy accordingly.
4. Develop/review a policy for Employment Contract Termination in consultation with the unions and shop
stewards and implement this policy accordingly.
5. Provide internal/external training to more workers on relevant topics such as the roles and
responsibilities of the employers, unions and shop stewards.
In September 2023, the NGO Action Aid published an investigative report alleging that garment factories in
Cambodia, supplying apparel and footwear to companies (including PUMA), reduced monthly wages
compared to 2020 levels and failed to pay sufficient severance when the factories closed due to the COVID-19
lockdown. The report, which interviewed 308 garment workers in 15 factories, also claimed that workers
were unable to afford necessities even after the COVID-19 lockdown restrictions were lifted due to lower
wages and fewer overtime hours, while overtime pay became a systemic dependency.
Following the report, PUMA engaged with the Clean Clothes Campaign (CCC) and Action Aid to understand
the methodology behind the allegations that were made. For PUMA, the allegations relate to six of PUMA’s
suppliers, two of which PUMA had ended the business relationship with by mutual agreement in 2021. After
further investigation, PUMA did not identify any wage gap as per the government’s instructions during the
lockdown period in the remaining four factories. Although “no work, no pay” directives were in effect, PUMA
ensured that workers would receive a regular income during 2021 lockdown through regular communication
with our suppliers in collaboration with our sourcing team.
Between 2019 and 2022, Cambodia represented around 13% of PUMA’s total sourcing volume. In 2020 and
2021, PUMA focused on keeping suppliers in business and safeguarding workers’ health, employment, and
income through several measures including: minimizing order cancellations (0.35% of orders were
cancelled in 2020) and expanding our PUMA Vendor Financing Programme, with an increase in suppliers'
participation from 21% in 2019 to 30% in 2020. As a responsible business partner for our suppliers, PUMA set
up a responsible purchasing practices policy and engaged with Better Buying, an independent non-profit
organisation, to collect feedback from our core suppliers related to our purchasing practices. We reported
the key findings of the Better Buying survey in this report.
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↗ CASE STUDIES
Indonesia
On July 7
th, 2023, PUMA received complaints from a union related to union staff members at one of
PUMA’s footwear suppliers who were terminated based on not passing their probation period. The
union mentioned that the termination was considered illegal since it was without prior notice and no
evaluation was performed by a respective supervisor and section manager. The union believed that
this happened due to their union membership. The union leaders asked PUMA to support the
reinstatement of the three workers. On July 13
th, 2023, PUMA investigated and interviewed the factory
management and union representatives. PUMA found that the termination of the three union
members was not legal since there was no clear performance assessment from the respective of the
section heads. This was explained to factory management who agreed to re-instate the three
workers to the same position with the same wage. No wages were deducted for the period when the
workers were laid off. The union leader acknowledged PUMA’s engagement in this case and
recognised our commitment to respect freedom of association.
Madagascar
In June 2022, PUMA received a request from IndustriALL
’s Sub-Saharan Africa regional office to
support one of their trade union affiliates called SEMPIZOF in Madagascar. According to IndustriAll,
about 350 machinists went on strike in a factory producing for PUMA and other brands from May 18
th
to 25
th, 2022 to protest on wages and unfair skills’ assessments for experienced workers. The strikers
also denounced sexual harassment against female workers and bribery during recruitment.
SEMPIZOF approached the Labour Inspectorate and Labour Tribunal with another IndustriALL
affiliate SVS to request the reinstatement of 50 workers (dismissed during the strike) and respect of
workers’ rights. We immediately followed up with the supplier, who confirmed the unrest of 345
workers (out of 1,550), the dismissal of 58 workers, and their willingness to collaborate
for remediation. The four brands including PUMA producing in this factory had several meetings on
collaborative actions and reached out to the Fair Labor Association (FLA) for support.
In July 2022, during a first call with the FLA, the brands agreed to find an independent third party to
conduct an in-depth investigation. The FLA interviewed several candidates and commissioned an
independent third-party The Labour Hive in November 2022. It completed an investigation and
provided a detailed report with suggested actions in February 2023. The report includes a thorough
analysis of all allegations. The factory immediately suspended the manager related to
sexual harassment allegations and dismissed him after the investigation. The investigation did not
identify issues related to overtime, short-term contracts, unfair dismissals because of trade union
activities nor bribery at recruitment. The FLA published the results of the investigation report.
Brands studied the report and agreed on an action plan with the supplier in May 2023. During a
follow-up verification of the remedial action plan in November 2023, it was confirmed and verified by
The Labor Hive that factory management had engaged with various stakeholders such as
local authorities, Better Work, trade union (FISEMA), and worker reps to take corrective actions.
Various projects and programmes have been implemented, and improvements such as an increased
meal allowance, adjusted salary as per government decree, regulating probation period
for production workers, and removal of the dismissed workers from the blacklist (so that they can
find jobs in other factories) were made. In partnership with ILO Better Work, the factory
arranged several trainings on Freedom of Association, Harassment and Abuse, Compensation and
Benefits and Hours of Work. Further improvements on workplace dialogue, workers’
satisfaction surveys, training effectiveness, renewal of workers’ representation election, and the
implementation of a workers’ performance evaluation system are still on-going and aim to be
completed by August 2024.
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ZERO TOLERANCE ISSUES
All issues identified during our auditing and hotline activities are classified as zero tolerance issues (such
as child labour or forced labour), critical issues or other issues in our Sustainability Handbooks.
Zero tolerance issues lead to the immediate failure of an audit. If these issues are reported for a new
factory, the factory will not be allowed to produce PUMA goods. Established suppliers must remedy all zero
tolerance issues immediately by conducting a root cause analysis and implementing preventive measures to
prevent the issue reoccurring. As a last resort, a business relationship can be terminated if the factory fails
to cooperate. Other issues are also followed up on by our Compliance team.
In 2023, we identified 19 zero tolerance issues and were able to remedy eight on workers’ compensation in
line with legal requirements, lack of transparency and wastewater discharge. Two zero tolerance issues
remain open. One was related to a South Africa-based factory producing furniture for our retail stores
paying 94% of the minimum wage, as they were granted an exemption by local authorities. After meeting the
factory management, they committed to pay the full minimum wage from July 2024. Another example is
a factory in Pakistan which was found to have transparency issues during an unannounced audit in late 2023
conducted after the publication of a Report from Labour Behind the Label. The factory committed to
improve and joined the Better Work programme in December 2023. We informed Better Work about this
case and intend to resolve this issue during its first assessment. Nine factories were not onboarded or were
deactivated in 2023. The increase in zero tolerance issues is due to the increased number of
factories audited in 2023.
↗ T.09 ZERO TOLERANCE ISSUES (ZTIS)
Country
2023
2022
2021
India
5
3
Bangladesh
3
2
Cambodia
2
1
2
Vietnam
2
2
Canada
3
Pakistan
2
South Africa
2
Brazil
1
China
1
Egypt
1
Malaysia
1
Philippines
1
Spain
1
Grand total
19
12
4
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FREEDOM OF ASSOCIATION PROTOCOL IN INDONESIA
To ensure workers’ voices are heard, we want to foster Freedom of Association (FoA) and signed the
Indonesia FoA Protocol.
The main objectives of the Freedom of Association Protocol are:
• Eliminate the practice of union busting in the factory and to foster healthy industrial relationships
• Factory management and union leaders can identify violations and challenges around FoA that arise in
the factory and are able to discuss solutions together
• Avoid victimisation of union representatives and members when disputes arise between union members
and management
• Set up fair rules for the implementation of FoA by having a joint understanding and commitment
between workers and the factory management
• To have extra layer of rules and regulations related to FoA practice that is not regulated in Law
No. 21/2000
As of end of 2023, seven Tier 1 factories have agreed to apply the FoA Protocol with 13 unions. Two factories
are planning to sign up in 2024, while the remaining ten Tier 1 suppliers either do not have a union or their
union is not a member of FoA Protocol. As of end of 2023, no FoA case within PUMA suppliers has been
escalated to the FoA Protocol national committee. FoA cases are mainly resolved internally at a factory level
without PUMA’s involvement.
WAGE ISSUE IN KARNATAKA
On February 19, 2020, the state government of Karnataka increased the Variable Dearness Allowance (VDA),
requiring manufacturers to pay workers Rs. 417.56/month as a component of their wages, from April 2020
onwards. The VDA is calculated based on the increase or decrease in the consumer price index (CPI) to help
employees in the public and private sector to cope with the rising cost of living due to inflation.
The Karnataka labour department deferred the payment of VDA (as per the VDA Hike Order) until
March 2021 due to the financial hardships caused to employers during COVID-19. Two unions challenged the
deferral order and filed two petitions in August 2020. On September 11, 2020, the Karnataka High Court
announced that the Labor Department’s postponement of the wage increase was illegal as per Section 26(2)
of the Minimum Wages Act. This means that non-payment could be seen as being in contempt of such a
court order. In practice, factories paid Rs. 622.44/month VDA to workers from April 2021, but they did not pay
Rs. 417.56/month to workers from March 2020.
We have actively been working with our sourcing and suppliers in the region, informing our three suppliers
that PUMA expects suppliers to pay the incremental minimum wages (considering both the 2020 and 2021
VDA adjustment), including arrears to both existing and former workers. We aligned our expectations of
suppliers with the Worker Rights Consortium and kept informing them on our progress. In 2023, $ 484,928
was paid to 13,687 workers, including both existing and former workers. We verified payment on-site, except
for one factory onboarded in April 2023, where a visit is scheduled in early 2024.
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FAIR INCOME
TARGET DESCRIPTION:
• Make sure all PUMA employees are paid a living wage
• Carry out fair wage assessments including mapping a specific wage ladder for top five sourcing
countries to help improve their wage levels and practices
• Ensure bank transfer payment to workers at all core suppliers by 2022
• Ensure effective and freely elected worker representation at all core Tier 1 suppliers
Relates to United Nations Sustainable Development Goals 1, 2 and 10
KPIs:
• Percentage of average wages compared to minimum wage
• Percentage of workers with permanent contracts
• Percentage of workers with social insurance coverage
• Percentage of workers paid via bank transfer
• Percentage of factories with freely elected worker representation
• Percentage of factories with collective bargaining agreements
• Number of countries with fair wage assessments over the last five years
For the definition of fair wages, PUMA follows the requirements for compensation set out in the Code of
Conduct published by FLA. The Fair Wage Network conducts wage assessments and evaluates the wage
systems of selected factories across 12 dimensions, focusing on five major areas: legal compliance, wage
levels, wage adjustments, pay systems and social dialogue and communication. It also assesses the priority
the wage policy takes within the company’s Human Resources policy and its Sustainability Strategy
(considered as a thirteenth cross-cutting dimension).
FAIR WAGES AT PUMA'S OWN ENTITIES
The increasing cost of living is an emerging risk for PUMA. In 2021, we purchased a license for the living
wage database of the Fair Wage Network. In 2021 and 2022, we used this database to check that a living
wage was being paid to all PUMA employees globally. In 2022, our global leadership team implemented
performance indicators - tied to bonuses - related to ensuring PUMA employees earned a living wage. The
results of this internal assessment show that in 2022 all regular PUMA employees globally who were
working full time were paid according to living wage thresholds at the regional/city level or above the Living
Wage National Adjusted Mean as defined by the Fair Wage Network. This was also the case for 2023. See
Our People section for further details.
FAIR WAGES IN THE SUPPLY CHAIN
As part of our efforts to ensure fair wage practices at the factories of our suppliers, we have defined
the failure to make a full payment of at least the minimum wage as a zero-tolerance issue. This means that
to be taken on as or to remain an active PUMA supplier, a company must pay minimum wages in full
compliance with local regulations. 99.97% of workers in 2023 were paid at least minimum wage. Provisions
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80
around the payment of overtime hours and social insurance are also clearly articulated in PUMA’s Code of
Conduct and are scrutinised regularly as part of our Compliance Audit Programme. The performance of
PUMA‘s suppliers in other Fair Wage dimensions is also assessed through fieldwork assessment surveys
(among both the workers and management) carried out by the Fair Wage Network.
DIGITAL PAYMENT
In 2023, 100% of our core factories paid 224,444 employees digitally. We are further expanding the digital
mapping to all Pakistan factories, where 1,742 employees from four suppliers are not yet paid digitally. We
will follow up in 2024.
FAIR COMPENSATION DASHBOARD
We have collected wage data annually from our core Tier 1 factories for several years. We use this data to
report S-KPIs (see table T. 12). In 2022, we used the FLA’s Fair Compensation Dashboard* to analyze 2021
wage data for 59 strategic Tier 1 factories, and 2022 wage data for 60 strategic Tier 1 factories in 2023. We
use the Dashboard to compare aggregated and anonymised data from industry peers and, where available,
against living wage estimates of the Global Living Wage Coalition (GLWC), developed by the Anker Research
Institute**. Where GLWC estimates are not available, namely in Indonesia, we used 2022 Fair Wage Network
benchmarks***.
Graph G.10 shows the results of our benchmarking for 60 core Tier 1 factories in local currency, covering
wages in 2022. This data covers approximately 75% of PUMA’s global production volume for 145,834
workers employed under those suppliers. 32 factories paid a living wage to 83,089 workers in Cambodia,
China, Pakistan and Vietnam, covering 45% of PUMA’s global production volume. Those 83,089 workers
represent 13% of our total supply chain workforce.
Below is our analysis of the results:
• All of our five strategic factories in Cambodia, one out of two strategic factories in Pakistan, 13 out of 18
strategic factories in China and 13 out of 20 strategic factories in Vietnam pay, on average, a living wage
as set by the Global Living Wage Coalition. For Vietnam, as the GLWC provided a breakdown of the living
wage benchmark into four different levels instead of two previously, seven Vietnam factories out of 20 fell
below GLWC benchmarks. These seven factories now have a higher living wage level to reach.
• One supplier in the Philippines, which is below GLWC benchmark, will go through a Fair Wage
Assessment in 2024.
• In Indonesia, all strategic factories went through Fair Wage Assessments or Remediations. One of the
factories received the Fair Wage Certificate. At two factories re-assessed after remediation, we saw
improvements in their scores on the 12 Fair Wage Dimensions, especially on prevailing wage, real wages,
communication and social dialogue. These actions were taken between 2022 and 2023, which explains
why there is a wage gap towards a living wage. We will keep following the remediation actions of these
four core factories in Indonesia.
* Industry average wage data from the FLA Fair Compensation Dashboard from November 2020 and October 2021. Users of the
FLA’s Fair Compensation Dashboard have access to live anonymised monthly average net wage calculations based on all
wage data uploaded per country and year. Averages are updated as wage data is uploaded into the dashboard and includes
the Net Wage = Basic (Contracted) Wage + Cash Benefits + In-Kind Benefits – Mandatory Taxes and Legal Deductions.
Payment of overtime is excluded.
** Global Living Wage Coalition: The GLWC estimates and reference values are developed by the Anker Research Institute. The
methodology for these estimates uphold the definition of the living wage, which includes the standard remuneration received
by a worker for a workweek, in a particular place, to afford a decent standard of living for the worker and his/her family.
Elements of a decent standard of living include food, water, housing, education, healthcare, transportation, clothing and
other essential needs, including provision for unexpected events.
***Fair Wage Network methodology: It takes into account the minimum living wage necessary for a worker to cover his/her
family's basic needs considering multiple income earners in the family (the necessary family budget being covered by the
sum of income earners). FWN also proposes a more ambitious living wage threshold that would consider one income earner
and not multiple income earners. PUMA used multiple income earners thresholds in our fair wage analysis.
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• The Turkey factory’s net pay has increased by 55% compared to 2021 due to the high inflation. We plan to
enroll this factory for a Fair Wage assessment in 2024 to evaluate its wage system, so the factory can set
up an action plan and workers’ income can increase.
• One supplier in Pakistan reached the Global Living Wage Coalition Benchmark. Another supplier
reached 97% of the GLWC benchmark. We will launch Fair Wage Remediation with the latter in 2024.
• Wage payments in Bangladesh, despite being above industry average, fell well short of the Global Living
Wage Coalition Benchmark and reached 67% of the Global Living Wage Coalition Benchmark in 2022;
(70% in 2021, 69% in 2020).
In 2023, we conducted Fair Wage Assessments with ten factories in Bangladesh, Pakistan, Indonesia,
Cambodia and China, including seven re-assessments at factories in Bangladesh, Cambodia, Pakistan and
Indonesia and three first-time assessments at two suppliers in China and one in Bangladesh.
↗ G.10 FLA FAIR COMPENSATION DASHBOARD 2020 – 2022
FAIR WAGE ASSESSMENT
Since 2018, we have asked Fair Wage Network (FWN) to conduct fair wage assessments at our core factories
based in Bangladesh (2018), Cambodia (2019), Cambodia and Indonesia (2021), Bangladesh,
Vietnam, Pakistan (2022), and China (2023) at 27 factories in total. Six factories obtained a Fair Wage
Certificate, meaning that across the 13 dimensions of Fair Wage, wage and overtime payment,
communication, and social dialogue for example, factories received at least 280 points out of 400 with no
more than two dimensions below a 40% score, and workers are paid above the Fair Wage Network Living
Wage threshold.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
PUMA Average
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
PUMA Average
2021 (1/14)
2022 (1/10)
Turkey
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
PUMA Average
Indonesia
0
500
1000
1500
2000
2500
3000
3500
PUMA Average
China
0
50
100
150
200
250
300
350
PUMA Average
Cambodia
0
5000
10000
15000
20000
25000
30000
35000
40000
PUMA Average
Pakistan
0
5000
10000
15000
20000
25000
PUMA Average
Bangladesh
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
PUMA Average
Vietnam Rural
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
PUMA Average
Vietnam Urban
Net Legal Minimum Wage 2022
Industry Average 2022
GLWC Benchmark
FWN living wage
Philippines
2020 (1)
2021 (5/15)
2022 (4/31)
2020 (3)
2021 (18/122)
2022 (18/112)
2020 (16)
2022 (1)
2020 (1)
2021 (2/2)
2022 (2/11)
2020 (2)
2021 (5/36)
2022 (5/13)
2020 (4)
2021 (8/31)
2022 (9/57)
2020 (7)
2021 (11/122)
2022 (12/107)
2020 (7)
2021 (9/122)
2022 (8/107)
2020 (6)
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A positive outcome is that factories are strong in some institutional elements such as wage grids,
monitoring the wages’ cost progression within the total production cost (including involving worker
representatives to discuss and negotiate wage related issues and paying wages above competitors’ rates
and above companies from other sectors located in the same area. However, similar developments were not
always reported on in collective agreements, which have rarely been signed at the factory level, and
monitoring process for moving towards the payment of a living wage. These insights still provide valuable
information for follow-up and remediation in these factories. Worker satisfaction with wages and working
conditions was found to be relatively good, with most workers being either ‘fully’ or ‘partly’ satisfied with
their wages and working conditions. At one supplier, however, it was found that nearly half of the workforce
were not satisfied with the working conditions, we will follow up on this in 2024.
In 2023, out of 10 factories that went through a fair wage assessment, six were re-assessed after a nearly
one-year remediation phase with the support of Fair Wage Network (three in Bangladesh, one in Cambodia
and two in Indonesia). All six factories improved significantly in communication and social dialogue, wage
structure and also competitiveness. Under the Fair Wage Network Remediation Framework, social dialogue
activities took place at those six factories and the wage structure was jointly reviewed as a result. Although
wage adjustment mechanisms were improved, there is still room for improvement as regards the living
wage. At the three factories assessed for the first time, we will work with the Fair Wage Network to further
improve their wage strategy and pay systems. One factory in Pakistan was re-assessed as they previously
had reached the GLWC living wage threshold. The factory has not yet received fair wage certification
although its score has improved.
The Fair Wage Remediation programme provides a remediation plan to factories based on their individual
assessments, and guides factories in setting up a Fair Wage Implementation Committee (consisting of
workers and management representatives). The Committee is trained by the Fair Wage Network, on fair
wage dimensions, wage grid, and how to a conduct living wage survey. The committee is responsible -under
FWN guidance- for implementing the remediation plan.
In Indonesia, both factories under the remediation programme opened a dialogue channel with trade unions
to negotiate the pay systems. One supplier included a seniority bonus into its basic wage, 90% of workers
had a 0.46%-1.15% wage increase since January 2023; the factory also provided 14% to 28% as skill bonuses
to workers having the ability to operate more than one machine. Another supplier pays workers higher than
the legal requirement, providing a seniority bonus of 0.42%-0.48% of the minimum wage to workers who
have worked more than one year, and providing a skill bonus that ranges from 0.65% to 16.34% of the
minimum wage. All of these measures improve not only the fairness but also the efficiency of pay systems.
In Bangladesh, all three suppliers developed training modules and trained almost 100% of the workers
using a skills matrix for all the designations. This ensures that workers’ wages increase in step with human
capital developments (people skill development, working experience, creativity, strengths and attributes)
and that the promotion system is fair and transparent. Training programmes were also provided to both
management and workers on their roles and responsibilities based on the skills matrix and its connection to
wage increases. Suppliers also looked at the gap between workers’ gross income and the living wage, and
took initiative to minimize this gap. For example, one supplier introduced a fair price shop on the premises
of the factory, so that the workers get the daily products they need at an affordable price, allowing workers
to keep part of their wages for other needs. As a result of actions taken by our suppliers, we witnessed an
improved dialogue between workers and factory management on the topic of wages. Workers, in one of
three factories, formed a Trade Union during the remediation, so workers will be able to better coordinate
their workforce concerns through this platform. We got to understand that the management of this
particular supplier was highly supportive of the Trade Union’s creation, and it was found that their
concerned parties are currently engaged in a congenial relationship.
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In Cambodia, with the involvement of the Fair Wage Implementation Committee, the factory that started its
remediation programme in mid-2022, reviewed its wage structure by creating more bonuses such as
productivity bonuses and multi-skill bonuses. All of these are contributing to an almost 6% wage increase
on average for about 3% (122) of qualified workers. This helped the factory to stabilize its workforce, with a
14.8% reduction of annual staff turnover in 2022 and a further 68.5% reduction in 2023.
↗ CASE STUDY
Bangladesh
A factory in Bangladesh was assessed by Fair Wage Network team in 2018 to evaluate its wage
practices. The factory could not be certified, joined the Fair Wage Remediation Programme in 2022
and was re-assessed at the end of the programme in 2023. The company has developed a rather
comprehensive wage policy.
One of the major improvements was in ‘Communication and social dialogue’. A committee,
consisting of an equal number of representatives from management and workers, was formed to
implement a remediation plan. The workers’ representatives on the committee were engaged in the
decision-making process while developing and implementing the skills matrix, performance
evaluation processes, for example. A robust communication strategy was set, ensuring that
employees are well-informed about their wage levels and pay structures. The company set up a
social dialogue policy, allowing representatives of workers to be involved in discussions and
negotiations on wage matters. The intention is for these negotiations to lead to regular talks on
wage issues and the possible endorsement of a collective agreement in future. The improved labour
relations led to a 0.5% reduction in the staff turnover rate.
In March 2023, while the remediation programme was underway, the workers at the factory created a
Trade Union. This action suggests that the workers recognise the potential benefits of having a
collective organisation to represent their interests. By establishing the Trade Union, the workers
have created a structured platform that allows them to collaborate more effectively on matters of
collective concern. Currently, approximately half of the workers of the factory are members of that
Trade Union. The factory is working with Better Work Bangladesh, who provide training for both
management and union members on their roles and responsibilities under the Labor Law.
GENDER PAY GAP
For the first time in 2023, we collected wage data by gender. There is no wage gap between female and male
workers on a global average. We notice a difference of a few cents of Euros per hour in Pakistan, China,
Cambodia and Turkey, mainly because factories are paying higher wages for working positions, such as
polishing, or in warehouses that require the use of chemicals or heavy lifting and are positions
predominantly filled by male workers.
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↗ T.10 GENDER PAY GAP
1-2
2023
SOUTH ASIA
SOUTHEAST ASIA
EMEA
2023
Social KPI
Bangladesh
Pakistan
China
Cambodia Indonesia Philippines
Vietnam
Turkey
Average
Hourly average gross
wage excluding overtime
and bonuses (%)
(female-male)*
0.0
-0.2
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
Hourly average gross
wage including overtime
and bonuses (%)
(female-male)*
-0.1
-0.2
-0.1
0.0
0.0
0.0
0.0
-0.1
0.0
Number of factories
8
2
18
5
4
1
18
1
57
*
New KPI
1
Data received from 57 PUMA core suppliers representing 72.1% of 2023 production volume, 72.4% of 2023 production value;
reporting period for data collection: January 2023 – October 2023 (November and December 2023 were calculated based on
the estimation method)
2
Wage gap calculation – Average of total female workers’ hourly gross wage – Average of total male workers’ hourly gross
wage
RECRUITMENT FEES
PUMA signed the Fair Labor Association/American Apparel and Footwear Association Commitment to
Responsible Recruitment in 2018. Since then, we have been actively involved with suppliers, industry peers
and the UN’s International Organization for Migration (IOM) to ensure that the labour rights of foreign and
migrant workers are upheld in our supply chain.
We map on a yearly basis if our factories employ foreign migrant workers and how much workers paid in
recruitment fees. We then engage with our sourcing leaders, supplier top management, and in some cases
other brands the supplier produces for, to come up with an agreement on a timeline to pay migrant workers
back. The back payment could in certain cases be made in different instalments and not a lump sum to not
disturb the factory as not all workers are entitled to this payment – an issue which could lead to
misunderstandings between workers.
Through the efforts of multi-stakeholder engagements, factories paid back more than $ 100,000 to 255
foreign migrant workers at six factories in Japan, South Korea, China (Taiwan) and Thailand in 2022. PUMA
has used e-learning from the International Organization for Migration in employer guidelines to train 36
factories from Mauritius, China (Taiwan), South Korea, Thailand and Japan in 2022. In 2023, we kept
monitoring factories’ recruitment practices.
In May 2023, we found that eight foreign migrant workers had paid recruitment fees before starting to work
at three factories (two core Tier 2, one non-core Tier 2) in Taiwan; through communication with factories and
support from our sourcing team, over 370 for a flight ticket from
their home country to South Korea. The factory immediately reimbursed this worker after the audit.
During audits conducted at the end of 2023, we found that 12 migrant workers had paid a total of
approximately 23,109 to nine migrant workers in January 2024; we will terminate our business relationship
with the third factory which refused to reimburse workers since it is in breach of PUMA’s standards. We will
phase out this supplier by June 2025, so that they have sufficient time to find another customer to replace
PUMA’s business and to avoid impacting workers’ employment.
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In 2023, the IOM trained PUMA’s Sustainability Team in the following areas:
• How fair and ethical recruitment due diligence can help prevent and mitigate adverse human and labour
rights for migrant workers.
• Practical knowledge on how to apply Ethical Recruitment Due Diligence Tools, particularly the supplier
Self-Assessment Checklist, Corrective Action Plan, and the Interview Questionnaire for Migrant
Workers.
• Features and functions of the Ethical Recruitment Due Diligence tools as a trainer.
In 2024, the IOM will further support PUMA to develop suppliers’ guidelines regarding responsible migrant
workers recruitment and working conditions. These will be included into our Social Standards and
translated into all relevant languages. PUMA’s Sustainability Team will train our suppliers who employ
foreign migrants on these new requirements.
↗ T.11 FAIR INCOME TARGET STATUS
Sub-targets
2023
Baseline 2020
Target 2025
Digital payment (% of core Tier 1 and Tier 2 suppliers)
100%
90%
100%
% of workers that are receiving wage payments digitally
100%
*
100%
Percentage of core Tier 1 supplier facilities that have trade unions or
freely elected worker representation (core Tier 1)
66%
33%
100%
Fair wage assessments
(Mapping of a specific wage ladder for top five sourcing countries)
5 out of 5
2 out of 5
5 out of 5
*
No baseline in 2020
2022-2023 PUMA PLWF REPORT: LEADING
The Platform Living Wage Financials (PLWF) is a coalition of 20 financial institutions
that engage and encourage investee companies to enable living wages and incomes in
their global supply chains. The 2022-2023 PLWF report presents the annual
assessments of investee companies on living wage and responsible purchasing
practices. In 2023, PUMA was the only company that reached the Leading category for
its work on fair income, out of 31 companies from the Garment and Footwear sector.
SUPPORTING LEGAL MINIMUM WAGE INCREASE IN BANGLADESH
In 2023, PUMA received a letter from four Bangladeshi Unions calling for support for minimum wage to
increase, through social dialogue, and by making a long-term commitment to continue sourcing from
Bangladesh.
PUMA answered through a public statement recognizing that the current legal minimum wage in the
Ready-Made Garment sector is significantly below a living wage. In this statement, we share PUMA’s
standards regarding legal minimum wage, overtime and social insurance payment-related issues, as well
as our continuous monitoring and methodology, regarding living wage benchmarks and assessments. We
reiterated the importance of freedom of association and collective bargaining as a key means through which
employers, their organisations and trade unions can establish fair wages and working conditions. We also
supported the FLA’s letter shared in August 2023, which appeals to the Chairman of the Minimum Wage
Board to champion local union demands for increases in the minimum wage.
In October 2023, PUMA also joined other FLA-affiliated brands to ask the government to consider that the
minimum wage consultations should be made in an environment to support dialogue with relevant
stakeholders and Unions, seek to raise the minimum wage to a level that is sufficient to cover workers’
basic needs and some discretionary income and takes into account inflationary pressures, while ensuring
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that the minimum wage is reviewed annually. Signatory brands are AEO, Inc. Abercrombie & Fitch, adidas,
Amer Sports, Burton, Gap Inc., Hugo Boss AG, KMD Brands, Levi Strauss & Co., lululemon, Patagonia,
PUMA SE, PVH Corp, SanMar and Under Armour.
In both letters, PUMA shared its commitment to implement Responsible Purchasing Practices to support
negotiations and wage increases and to continue sourcing in Bangladesh.
WORKER REPRESENTATIVES PROJECT
Effective social dialogue and sound industrial relations are key components of achieving decent work.
Ensuring effective and freely elected worker representation in all core Tier 1 suppliers is among our
10FOR25 Sustainability Targets. PUMA encouraged our suppliers to join the ILO Better Work Programme,
which coaches the factory management to create or work with an existing bipartite or worker/management
committee to discuss and resolve workplace issues on an ongoing basis.
For factories that are not part of the Better Work programme, we partnered with Timeline Consultancy, a
China-based consultant experienced on improving worker-management cooperation, who trained PUMA’s
Sustainability Team in 2022 and 2023. Our PUMA Sustainability Team gained the ability to independently
promote the establishment of an effective Worker Representative Committee and to evaluate
its effectiveness.
Since 2022, 12 factories in China have established a Worker Representative Committee. 358 worker
representatives were freely elected by production workers, 59% of which are female workers. For a better
understanding of the worker-management dialogue mechanism, 380 representatives of factory
management were trained by PUMA’s Sustainability Team on the Significance of Dialogue and Worker
Representation before the worker representative election. After the election, all these factory management
and worker representatives were trained on their roles and responsibilities, rights and obligations, how to
conduct adequate information sharing and how to establish a dialogue mechanism, which enables open
dialogue between factory management and worker representatives.
In 2023, we expanded the programme to include two Vietnamese factories and one factory in Indonesia:
worker representative elections will be held in three factories in 2024.
SOCIAL-KPIS
On average, our core suppliers paid basic wages that exceed minimum wage levels by 12.7% in 2023. When
adding overtime and bonus payments, our core suppliers pay 62.7% above minimum wage. In view of the
global macroeconomic situation, which has led to a change in customers' ordering behaviour, we saw a
decline in the order book in the first half of 2023 and stabilisation during the second half of 2023; as a result,
overtime working hours decreased on average by 2.4 hours per week compared with 2022, which explains
why the percentage of gross wages (including overtime and bonuses) above minimum wage decreased
compared with 2022. At the same time, in 2023, the minimum wage increased over a 12-month average by
104% in Turkey, by 11% in Pakistan, by 2% in Indonesia, by 4% in the Philippines, by 3% in Cambodia and 0.3%
in China. For Bangladesh the new minimum wage came into effect on the first of December 2023, and
increased by 56%.
100% of workers are covered by social insurance in all countries except for China where 80.4% are covered:
this represents a 4.4% increase compared to 2022 due to factories making an effort to explain the benefits of
the programme and convincing workers to join social insurance schemes. The total average coverage with
social insurance increased from 97% to 97.5%.
In 2023, 32.3% workers are covered by a collective bargaining agreement (in 2022 34.4%). This number
decreased as one of our suppliers in Indonesia with a CBA dropped off our core supplier list.
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The percentage of women in managerial positions increased slightly to 50.4% (in 2022 49.1%) as some
factories reached their goals of increasing the number of females in managerial roles.
The percentage of permanent workers increased from 74.2% to 76.7% on average, mainly due to labour law
changes in Cambodia, under which more workers get an Undetermined Duration Contract (UDC), after
completing a two-year Fixed Duration Contract (FDC). In addition, since there was a decrease in orders
during the first half of 2023, factory management teams recruited fewer temporary workers.
The turnover rate decreased due to factories implementing worker retention programmes. However, in
countries such as Pakistan, Indonesia and Turkey turnover rates increased due to downsizing business or
workers entering into retirement.
The average injury rate was reduced to 0.2% (0.3% in 2022). We followed up on action plan implementation
after various OHS trainings, such as Accident Prevention and Reporting training, conducted by PUMA since
2021. In view of the 2023 global macroeconomic situation, which led to a change in customers' ordering
behaviour, we saw a decline in the order book in the first half of 2023 and stabilisation during the second
half. This led to a downturn in working hours, fewer temporary workers being recruited and potentially
fewer risks of injury. This could also explain why the injury rate decreased this year.
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↗ T.12 SOCIAL KPIS PUMA CORE TIER 1 FACTORIES 2020-2023
1-3
2023
SOUTH ASIA
SOUTHEAST ASIA
EMEA
2023
2022
2021
2020
Social KPI
Bangladesh
Pakistan
China
Cambodia
Indonesia Philippines
Vietnam
Turkey
Average
Gross wage paid above minimum wage
excluding overtime and bonuses (%)
23.6
33.2
5.9
6.1
1.3
0.0
31.4
0.4
12.7
13.4
14.5
13.0
Gross wage paid above minimum wage
including overtime and bonuses (%)
58.6
38.9
166.6
63.3
38.3
18.0
93.3
24.9
62.7
71.0
80.2
54.7
Workers covered by social insurance (%)
100.0
100.0
80.4
100.0
100.0
100.0
100.0
100.0
97.5
97.0
95.1
95.6
Overtime (hours per week)
6.0
0.3
13.5
4.9
4.5
6.0
3.5
3.8
5.3
7.7
8.3
5.4
Workers covered by a collective bargainning
agreement
0.0
0.0
93.3
40.0
25.0
0.0
100.0
0.0
32.3
34.4
37.2
26.9
Female managerial position (%)
7.4
7.7
56.3
64.6
73.8
76.9
71.2
45.3
50.4
49.1
NA
NA
Female workers (%)
42.0
9.7
61.6
83.1
82.8
63.9
76.2
58.5
59.7
60.0
59.5
58.8
Permanent workers (%)
100.0
100.0
28.6
62.7
99.2
77.2
45.6
100.0
76.7
74.2
75.5
74.4
Annual turnover rate (%)
27.3
32.9
52.8
41.9
26.5
15.1
39.9
34.8
33.9
35.6
34.0
29.9
Injury rate (%)
0.3
0.0
0.4
0.3
0.3
0.0
0.1
0.5
0.2
0.3
0.3
0.4
Hourly average gross wage excluding
overtime and bonuses (%)
(Female-Male)*
0.0
-0.2
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
Hourly average gross wage including
overtime and bonuses (%)
(Female-Male)*
-0.1
-0.2
-0.1
0.0
0.0
0.0
0.0
-0.1
0.0
Number of factories
8
2
18
5
4
1
18
1
57
65
63
58
* New KPI
1
Data received from 57 PUMA core suppliers representing 72.1% of 2023 production volume, 72.4% of 2023 production value; reporting period for data collection: January 2023 – October 2023
(November and December 2023 were calculated based on the estimation method)
2
Injury rate calculation – Number of OSHA Recordable cases X 200,000 / Number of Employee Labor hours worked
3
Wage gap calculation – Average of total female workers’ hourly gross wage – Average of total male workers’ hourly gross wage
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HEALTH AND SAFETY
TARGET DESCRIPTION:
• Zero fatal accidents
• Reduce accident rate to 0.5 at PUMA and at suppliers
• Building safety operational in high-risk countries*
Relates to United Nations Sustainable Development Goal 3
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Expand building safety projects to include Indonesia
• Ensure professional risk assessments are conducted regularly
KPIs:
• Number of fatal accidents at Tier 1 and core Tier 2 factories
• Average injury rate at PUMA
• Average injury rate at core Tier 1 suppliers
• Number of factories subject to our Building Safety Assessment Programme
Ensuring safe working conditions for our own employees and hundreds of thousands of indirect employees
at our manufacturing partners is an ethical imperative. In 2015, we set a target of zero fatal accidents and
aimed to reduce the number of work-related accidents. In 2021, we revised our Supplier OHS handbook,
requiring our manufacturing partners to conduct an OHS risk assessment. We also published the PUMA
OHS Policy for our own employees. Our health and safety targets are linked to the bonuses of our global
leadership team.
HEALTH AND SAFETY AT PUMA’S OWN ENTITIES
At our headquarters, we operate an occupational Health and Safety Committee, that oversees our health
and safety management system. The Committee includes a specialised labour physician, a health and safety
technician and employee representatives. In 2023, we certified our OHS management system according to
ISO 45001 at the headquarters level.
To ensure a global implementation of our health and safety policy, our larger subsidiaries have their own
health and safety committees or experts in place. For more than ten years, we have been able to record zero
fatal accidents at our own entities globally. We have also kept the lost time injury rate below 0.5 since 2019,
meaning that per 100 full-time employees, less than 0.5 accidents were recorded, in line with our targets.
*
High-risk countries are defined by the building safety index which is based on instances of non-compliance associated
with building approval, multi-tenant building, structural integrity, ventilation/ heating, and warehouses.
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In 2023, this target was supported by continuing our Occupational Health and Safety e-learning. Over 80% of
PUMA staff members globally participated in health and safety training to prevent injuries or work-related
negative health effects.
In addition, we offer sports facilities, canteens with balanced food and work-life balance courses at our
major offices globally. For more information on employee wellbeing please refer to the Our People section
of this report.
HEALTH AND SAFETY IN THE SUPPLY CHAIN
Apart from our ongoing auditing programme that includes occupational health and safety assessments, we
implement our Building Safety Assessment Programme in countries where we have identified risks. We also
set up professional risk assessments at all our major manufacturing partners. Despite these preventive
measures, unfortunately, a work-related accident resulted in the death of an employee in one of our
suppliers’ factories in India in 2023. We will keep our focus on Occupational Health Safety accident
prevention.
SUPPLIER TRAINING ON OHS RISK ASSESSMENT
In 2021, we updated our OHS Handbook to guide the OHS risk assessment processes and tools for the
factory management and OHS person in charge.
PUMA provided training to core Tier 1 and Tier 2 suppliers on how to conduct Occupational Health and Safety
(OHS) risk assessments in 2021 and 2022. We followed up on progress with an on-site visit by a third-party
auditing company.
In 2023, among the trained factories, we noticed fewer violations related to Chemical Safety Management (-
3%), and Electrical and Mechanical Safety Management (-2%) compared to 2022. However, we noticed more
violations related to noise pollution. We will explore how to improve together with suppliers in 2024.
In 2023, the PUMA Sustainability Team developed accident prevention and reporting training based on the
ITC-ILO material and provided Train-the-Trainer sessions to 266 managerial staff at 102 factories (core Tier 1
suppliers and all factories in India and Sri Lanka). Trained factory managers provided this training to 115,588
workers in 59 factories. Training hours were 117,695 in total. Some of the factory managers received the
training in late 2023, we will follow up on their workers’ training in 2024.
4,364 workers from eight factories in Cambodia and Indonesia completed the Better Work e-learning course
on Occupational Safety and Health via the WOVO mobile app, covering 51% of the employees in these
factories.
BUILDING SAFETY ASSESSMENT AND RISK ASSESSMENT
A safe workplace is a top priority at PUMA and we continuously carry out building safety inspections among
high-risk factories in our supply chain. From 2015 to the end of 2023, our Building Safety Assessment
Programme covered Bangladesh, India, Indonesia and Pakistan.
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↗ T.13 BUILDING SAFETY ASSESSMENT PROGRAMME
Country
Number of factories Comments
Bangladesh
21 Part of our ongoing membership of the Bangladesh Accord
India
6 In partnership with AsiaInspection or Elevate
Indonesia
5 In partnership with AsiaInspection
Pakistan
3 In partnership with Elevate
In 2023, we used EIQ to map all sourcing countries where building safety is considered as high risk. As a
result, two factories in Indonesia and four factories in India were identified as high-risk. The four factories in
India already went through a Building, Electrical and Fire Safety Assessment (BEFS) in 2022, conducted by
ELEVATE. A similar assessment was conducted in the two Indonesian factories in 2023. Through active
engagement with these four suppliers in India, 69% of the findings had been remediated by the end of 2023.
We will keep following up to ensure all findings are taken care of.
Five factories went through building safety inspections in Indonesia, two in 2023 and three in 2018. We
continued following up on remediation at the three factories. Two factories obtained building safety
certificates issued by the government, and one will be certified in early 2024.
↗ CASE STUDIES
Building Safety in India
A factory under the largest footwear supplier in India, underwent the Building, Electrical and Fire
Safety Assessment by a third-party inspection firm, Elevate, in 2022, as well as a follow-up
inspection in 2023.
75 findings were identified at the initial assessment, 22 of them categorised as Major Issues. PUMA
conducted an onsite follow-up with factory management, who then agreed to engage with experts to
conduct feasibility studies and implement corrective actions. Over $ 41,000 was invested to install
fire-fighting equipment, strengthen the building structure, do panel modifications, etc. As a result,
92% of findings had been corrected during the follow-up inspection in September 2023. The rest of
the findings require more time to remediate. PUMA will follow up with the supplier in 2024.
ACCORD
As part of its continued commitment to the ACCORD international programme, PUMA signed the Pakistan
ACCORD in early March 2023. Seven supplier factories joined the programme, including two of the three
factories that were previously assessed by ELEVATE and other third parties. Another factory in scope of this
programme was on-boarded in mid-2023, we are now applying for this factory to join the ACCORD.
Two factories are not under the scope of Pakistan ACCORD programme, as these are not textile product
manufacturers. One of these factories was on-boarded in the last quarter of 2022 and will go through an
assessment in 2024. The second factory went through a Building, Electrical and Fire Safety Assessment
(BEFS) conducted by ELEVATE in 2017 and 2021. Since then, the factory management has hired a
professional third party to support the remediation of the open findings. In 2024, this factory will be re-
assessed to measure progress.
Our factories in the ACCORD in Bangladesh have a completion rate (initial findings) of 94%, whereas the
average rate of all factories in the RSC programme is 91%. Eight (out of 21 ACCORD active) factories
achieved 100% remediation of the initial findings. Another seven factories achieved 90%-98% remediation of
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the initial findings. Six out of 21 factories were at low completion rates (0%-89%): two did not receive a follow
up inspection by ACCORD in 2023, two were newly onboarded to ACCORD, and two were delayed in
remediation of the findings. We will keep working with those factories on ACCORD remediation plan in 2024.
ACCIDENTS
In 2023, we unfortunately reported an employee death resulting from a work-related incident at one of our
suppliers’ factories in India. An electrician fell from the factory’s roof, as neither a secured ladder was used
nor a harness rope was installed. After 55 days of hospitalisation, the worker’s health deteriorated, leading
to his death. The factory paid all medical expenses and the legal compensation, as well as an additional
lump sum to the worker's family. An investigation and Hazard Risk Assessment were conducted by an
independent expert. Following this assessment, safety equipment including a harness hook was installed on
the rooftop, staff training on hazards and risks was provided and enhanced monitoring of potential unsafe
conditions was implemented to prevent similar accidents. We deeply regret this tragic accident which
caused the loss of this employee’s life.
INJURIES
The average injury rate was reduced to 0.2%. We followed up on factories' action plan implementation after
various OHS trainings, such as Accident Prevention and Reporting training, conducted by PUMA since 2021.
Given 2023’s global macroeconomic situation, which led to a change in customers' ordering behavior, we
saw a decline in the order book in the first half of the year and stabilisation in the second half. This led to
fewer working hours, and fewer temporary workers recruitment, meaning less risks for injury, this could
also explain why the injury rate decreased this year.
↗ T.14 INJURY RATES AT CORE SUPPLIERS
Country
2023
2022
2021
2020
Bangladesh
0.3
0.6
0.5
0.4
Cambodia
0.3
0.4
0.3
0.2
China
0.4
0.3
0.3
0.6
Indonesia
0.3
0.2
0.2
0.2
Vietnam
0.1
0.1
0.1
0.2
Average*
0.3
0.3
0.3
0.4
Fatal accidents**
1
2
0
0
*
Average of the five countries included in this table. Global average injury rate for PUMA’s core suppliers in 2023 was 0.2.
** Including non-core suppliers.
BANGLADESH EMPLOYMENT INJURY SCHEME PILOT
Despite significant progress on the way towards decent and safe working conditions in the ready-made
garment industry in Bangladesh, it lacks a comprehensive Employment Injury Scheme (EIS) in accordance
with international standards as defined in the ILO Employment Injury Benefits Convention. To mitigate that
gap the Bangladesh Government initiated a pilot programme to provide income replacements for the
permanently disabled and the dependents of deceased workers. The ILO and GIZ collaborated in the project
and agreed on the implementation as well as the transition to a permanent EIS after three to five years.
The EIS provides periodic payments/pensions as top-ups to the lump-sum payments of the Central Fund,
rendering the level of benefits compatible with ILO Convention No. 121. These payments are financed by
international brands.
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PUMA signed the voluntary pledge for the Employment Injury Scheme pilot in Bangladesh to contribute to
safeguarding decent living conditions for victims and their families. PUMA joined in early 2023, together with
seven other brands. We are actively engaged with the project not only by providing financial support, but
also by providing feedback for learning.
According to EIS data on 31 December 2023, the pilot has responded to 13 death cases. The EIS committee
has disbursed a total of 932,766 BDT, equivalent to 5,241 BDT as a monthly compensation, directly to the
family members affected by this tragedy. The pilot has responded to eight permanent disability cases, with a
total estimated lifelong benefit of 5,837,724 BDT.
As per EIS policy, factory and workers are kept anonymous, so we have no way to know if the families of the
two workers who passed away as reported in our 2022 Annual Report, have received such a benefit.
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ENVIRONMENT
The purpose of our environmental efforts is to ensure that PUMA and its suppliers are in full environmental
compliance and that any negative impact on the environment is minimised. Over the last ten years, PUMA
has not incurred any environmental violations or fines known to us. Ultimately, we are aiming for a positive
environmental impact of PUMA and our supply chain on the environment.
ENVIRONMENTAL MANAGEMENT AT PUMA’S OWN ENTITIES
We conduct energy efficiency audits every four years at our own entities. In 2023, we commissioned 19 audits
at PUMA offices, stores and warehouses in Germany, the Netherlands, France, Spain and Sweden.
Compulsory in the European Union, these audits help us to identify energy-saving opportunities at our
offices, stores and warehouses and roll them out globally. In 2023, for example, we replaced some lights at
our headquarters with more energy-efficient LED lights.
In 2022 we achieved the ISO 14001 Environmental Management certification for our headquarters and
published a stand-alone environmental policy. We also compiled and published an environmental handbook
specific to our own offices, stores and distribution centres. We continued our global data collection and
management processes for our own entities and set up a quarterly subsidiaries call for peer learning and
good practice sharing. These calls are also used to re-emphasize our Sustainability Strategy and goals with
our PUMA countries worldwide. The progress towards those goals is reported in this report.
ENVIRONMENTAL MANAGEMENT IN THE SUPPLY CHAIN
ENVIRONMENTAL RISK ASSESSMENT
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively. Please refer to the Due Diligence and Risk Assessment section of this report.
In 2023, we conducted an environmental risk assessment using EiQ platform by Elevate. EiQ is a data-driven
supply chain ESG due diligence platform used by businesses to enhance Environmental, Social, and
Governance (ESG) risk management. We focused on two risk areas; firstly, environmental country
risk exposure for supply chain and secondly environmental material risk exposure.
COUNTRY RISK EXPOSURE
We evaluated the environmental risk profile of our key sourcing countries. In 2023, the six most important
sourcing countries, comprising 90% of the total volume, are located in Asia. China is the biggest production
country in 2023 with a total of 30%, followed by Vietnam is the second biggest production country with 26%,
Cambodia with 13%, Bangladesh, which focuses on apparel, at 12%, Indonesia with 5% and India – only
serving the local market at 3%.
The parameters for the country risk include indexes such as air emission, environmental management,
waste management, environment permits and wastewater violations. The supply chain risk environmental
profile indicates that Indonesia and the Philippines are extreme-risk countries, whereas other key sourcing
countries like Vietnam, China, Bangladesh, India and Cambodia are high-risk countries. Taiwan is a
medium-risk country from supply chain environment risk. For environmental permits violations, Indonesia
and Bangladesh are indicated as extreme-risk countries.
The risks mitigation measures in place for extreme-risk and high-risk countries, excluding India include;
factory performance evaluation through Higg FEM verification, chemical management following ZDHC
guidelines, compliance to ZDHC Wastewater Guidelines and core factories’ participation in cleaner
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production programmes, capacity building training programmes, supplier scorecard with E-KPIs followed
by meetings with these core suppliers.
Publicly disclosed goals on reduction in water consumption, reduction in production waste to landfill and
increased use of renewable energy help to track the performance of core suppliers and hence help to
mitigate environmental risks. In China, the country with the largest sourcing volume in 2023, our suppliers
have been disclosing their environmental performance data on The Institute of Public & Environmental
Affairs (IPE) platform.
India production is only serving the local Indian market, and we have prioritised compliance with our Zero
Tolerance Issues. We have not yet launched mitigation measures such as Higg FEM verification,
chemical management following ZDHC guidelines, and compliance to ZDHC Wastewater Guidelines to all
factories. We will gradually enroll these factories in these programmes in the coming years. In 2024, we will
strengthen our existing measures to improve the environmental performance of supplier factories. We will
focus on the transition to Higg FEM 4.0 which is a more exhaustive evaluation. It will help factories to
further improve their performance and in turn help PUMA to manage its environmental risks. We plan to
discuss the results of this risk assessment with our sourcing teams for business consideration.
MATERIAL RISK
We evaluated the environmental risk of our key materials such as cotton, polyester, leather & rubber. The
environmental risk covers water use, non-GHG air pollutants, terrestrial ecosystem use, soil pollutants,
solid waste and water pollutants. The results indicate that material environment risk is highest for natural
rubber, followed by synthetic rubber and leather. Polyester has the lowest environmental risk. Furthermore,
we mapped our sourcing share by country of these materials.
Cotton: In 2023, we sourced 63% of cotton from the USA, followed by Brazil (15%), Australia (8%) and India
(4%). The USA is a high-risk country while Brazil and India are extreme-risk countries; Australia is a
medium-risk country. The risks are water use, air pollution and biodiversity and ecosystem.
We have required our suppliers to source only cotton grown in farms that are licensed as having good
farming and human rights standards (BCI), or recycled cotton from factories that are either Global Recycled
Standard (GRS) or Recycled Claim Standard (RCS) certified by 2025.
PUMA is taking steps to mitigate some of the environmental risks associated with cotton sourcing which
includes the adoption of BCI cotton, increased usage of recycled cotton, innovation to increase the share of
recycled cotton in our products, conducting Life Cycle Assessments of products and materials to evaluate
the environmental impact in lifecycle stages and engaging with the industry such as Textile Exchange to stay
informed on industry best practices.
We collect material data consumption on an annual basis along with the country of origin and require our
suppliers to keep all the supportive documentation available. We have also established an on-going due
diligence programme with our partner laboratory in Germany where we regularly test samples of cotton-
finished garments before shipment. This further strengthens traceability and control across our supply
chain, from the raw material to the finished products.
Through our partnership with Better Cotton, we support farmers in developing a better understanding of
Integrated Pest Management and phasing out the use of Highly Hazardous Pesticides (this helps to
address improper disposal of used agrochemical containers which can contaminate air, soil, water and
local ecosystems), to use water responsibly, to better protect the soil and to conserve and enhance
biodiversity on their land. Better Cotton has set up goals to reduce greenhouse gas emissions by 50% per
ton of Better Cotton lint produced by the end of the decade, ensure 100% of Better Cotton Farmers have
improved the health of their soil and reduce the use and risk of synthetic pesticides by at least 50%.
In 2023, the share of BCI cotton was 90.3% and recycled cotton was 8.6% of total cotton sourced by PUMA.
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Polyester: We sourced 79% of our polyester from China in 2023, followed by Taiwan at 9.2% and Vietnam
at 7.4%. China is a high-risk country. Risk profiles for polyester from Vietnam and Taiwan are not available
on the EIQ platform. High-risks are air pollution, water use and solid waste.
We have required our suppliers to source only polyester-certified by Bluesign/Oekotex, or recycled polyester
from factories that are either Global Recycled Standard (GRS) or Recycled Claim Standard (RCS) certified by
2025. PUMA has joined the Textile Exchange polyester challenge since our 2025 goal of 75% recycled
polyester is aligned with this challenge. We engage our core fabric manufacturing plants in energy
efficiency programmes and support them to the transition to 25% renewable energy processing in 2025. We
monitor and report chemical discharges, and work to eliminate pollutant chemicals.
In 2023, we sourced bio-based, high-performance polyester fibre known as Sorona, to up to 0.11% of our
total polyester consumption. Sorona contains over 20% bio-based carbon content, which helps to reduce
environmental impact, while maintaining quality and performance. Sorona is produced via a fermentation
process that utilizes corn sugar as the main ingredient.
In 2023, 61.8% of the polyester used in our products was recycled, 23.3% certified by Bluesign/Oekotex and
0.11% biobased.
Leather: In 2023, we sourced, 61% of our leather from the USA, followed by Argentina 27%, Australia 6% and
Brazil 5%. The USA, Brazil and Argentina are high-risk countries, while Australia is a medium-risk
country. High risks are air pollution, water use and impact on ecosystem.
PUMA is taking several steps to mitigate environmental risks associated with leather sourcing. These
include sourcing leather from Leather Working Group-rated tanneries, committing for sourcing
deforestation-free bovine leather, and focusing on innovation for the development of recycled and other bio-
based alternatives. We engage with Fashion Pact, Textile Exchange and the Leather Working Group (LWG)
to remain updated about industry best practices.
We have committed to sourcing all the bovine leather used in our products from verified deforestation-free
supply chains by 2030 or earlier. We have signed up for the Deforestation-Free Call to Action for
Leather, launched by global non-profits Textile Exchange and LWG.
99.7% of the leather that PUMA sourced in 2023 is from Leather Working Group-certified tanneries. This
means that the leather used in PUMA products comes from manufacturers who are working to implement
industry good practice standards of environmental management and traceability. PUMA currently monitors
its LWG medal-rated tanneries’ upstream traceability performance.
Around 76% of the leather used at PUMA is Suede, a byproduct of the full-grain leather business. The
challenge faced currently by PUMA and others in the industry is that most suede tanneries work with agents
and intermediaries alongside direct tanneries, to guarantee a stable supply which creates a challenge
to have full traceability at the cattle ranch level.
Our innovation team has worked to address the technological limitations of a shoe designed for composting
and launched the RE:SUEDE experiment. The upper of the RE:SUEDE is made of Zeology tanned suede.
Synthetic Rubber: We sourced, 74% of our synthetic rubber from China, followed by Vietnam 14% and South
Korea 4%. China and South Korea are high-risk countries. The risk profile for synthetic rubber from Vietnam
is not available on the EiQ platform. High risks are greenhouse gas emissions, water use and solid waste.
We have not yet mapped the manufacturing plants supplying synthetic rubber to our outsole manufacturers.
As part of our 10FOR25 targets, we work on developing recycled materials as alternatives to rubber. In 2023,
5% of synthetic rubber was recycled. We engage our strategic outsole suppliers in Higg FEM (environmental
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performance tool measurement of which includes energy use and greenhouse gas emissions, water use,
wastewater, emissions to air and waste management) and work with them to eliminate pollutant chemicals.
Natural Rubber: In 2023, we sourced 29% of natural rubber from Vietnam, followed by Brazil 25%,
Pakistan 13%, and Thailand 5%. Vietnam is categorised as an extreme-risk country. Risk profiles for natural
rubber from Brazil, Pakistan and Thailand are not available on the EiQ platform. High risks are mainly water
use and impact on the ecosystem.
In 2023, only 2% of the rubber used in our products was natural rubber. We aim in the future to only source
FSC-certified rubber. The FSC certification includes standards to maintain, conserve, and/or restore the
ecosystem and environmental values of managed forests and also avoid, repair, or mitigate negative
environmental impacts.
SUPPLIER ENVIRONMENTAL SCORECARD
In 2023, we developed environmental performance scorecards for core supplier factories to visualize their
progress towards our 10FOR25 targets and 2022 goals. During one-to-one meetings, we explained the need
for setting Science Based Targets to 21 selected suppliers, we reviewed the 2022 Environmental KPIs (E-
KPIs) for 60 suppliers and discussed their 2023 plans; the need for participation in cleaner production and
renewable energy programmes for some factories was also discussed. Environmental KPIs include Higg
FEM score, FEM chemical module score, MRSL conformance rate, wastewater test results, percentage of
renewable energy usage, greenhouse gas emission per product or volume of material, percentage of water
consumption reduction (per product or volume of material), percentage of production waste sent to landfill
(per product or volume of material).
These meetings were useful for understanding the challenges of our suppliers and for prioritizing our
actions to support them. Key meetings outcomes:
• Alignment on setting Science-Based Targets (SBT): In summer 2023, 20 out of 21 selected suppliers
agreed to set climate goals based on SBT methodology. In these meetings, we followed up our suppliers
decision to set up SBT. In October 2023, in partnership with Guidehouse, we launched a capacity
development programme for eight suppliers called Leadership on Climate Transition (LoCT), to support
suppliers in this journey. In 2024, this programme will be expanded to other suppliers who do not have
sufficient in-house or external expertise.
• Enrolment in cleaner production programmes: Factories were nominated to participate in Cleaner
Production programmes based on their performance through E-KPIs and the expertise of their team
members. In August 2023, Clean by Design (CbD) program phase three was launched in the China and
Taiwan region for seven factories. A new programme called Resource Efficiency (REF) in partnership
with ENERTEAM was started in Vietnam in August 2023 for four factories. The Cambodia Decarbonization
Programme (CaDP) with IFC will be launched in early 2024 for four factories in Cambodia.
• Enrolment in renewable energy programmess: Suppliers shared their plans to complete feasibility
studies or install rooftop solar systems. In the absence of adequate rooftop solar capacity, RECs
purchases were discussed. The suppliers also highlighted their challenges. Subsequently, GIZ-PDP
programme phase II was rolled out in Cambodia in February 2023 for one factory and in Vietnam in
March 2023 for four factories to support rooftop solar installation.
• Phase-out of coal-fired boilers: We discussed this challenging goal with the relevant suppliers to align
on a phase-out plan. Suppliers raised their concerns about the unstable availability of biomass, the
absence of sustainable biomass guidelines, and the increased cost of natural gas. We will bring these
challenges to the Fashion Charter working group to find solutions to address them.
• Higg FEM Performance: Discussions focused on FEM (Facility Environmental Module) score. We also
acknowledged improvements made by factories with an increased score in 2022 (2021 FEM score). We
aligned on the need for additional training and/or support, such as one-to-one support for low
performing factories to improve their score. 210 factories in total were provided training on Higg FEM in
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2023. As a result, the average 2022 FEM score of core factories improved to 69% from 61% (2021 FEM
score).
• Chemical Management: we focused on the factories with low compliance with MRSL standards and
ZDHC Wastewater Guidelines. We aligned with factories on the need to bring in chemical suppliers
disclosing their chemicals to the ZDHC gateway, a platform used to upload factory chemicals inventory
lists and measure their MRSL conformance rate. In February 2023, we invited chemical suppliers to join
the training session on ZDHC MRSL conformance. We also worked with some key chemical suppliers to
support them in complying with ZDHC MRSL standards. As a result of the efforts, the MRSL
conformance rate has increased from 68% in 2022 to 71% in 2023, and the average Higg FEM Chemical
module score improved from 39% in 2022 to 51% in 2023. For factories with low ZDHC Wastewater pass
rate tests, we discussed their corrective action plans. In 2024, we will continue to engage them to get
more chemicals to comply with ZDHC MRSL.
FACTORY ENVIRONMENTAL PERFORMANCE MONITORING
Social compliance audits: For suppliers, our PUMA social compliance audits (detailed in the Human Rights
section) contain a dedicated section on environmental and chemical compliance. For example, during each
audit, we inspect environmental permits, waste management and effluent treatment plants. In general,
PUMA social compliance audits are used for onboarding new factories.
Monitoring tools: For monitoring the environmental performance of suppliers, PUMA has used an industry-
wide tool, the Higg Index Facility Environmental Module (FEM) 3.0. PUMA requires an annual external
verification of the self-assessment FEM modules. This external verification may be completed by approved
verifiers from PUMA’s internal team, other credited brands, or third-party organisations on the approved list
from SAC. 100% of verification inspections are announced.
PUMA’s Environmental Performance Rating System is based on the ratings developed from the factories’
Higg FEM score verified by SAC-approved verifiers: A, B+, B-, C and D. The minimum passing grade from
the environmental perspective is 40% (i.e., only A, B+ and B- ratings are passing grades) and C and D are
failure ratings. This rating system was presented to suppliers in 2022 and implemented gradually during
2022 and 2023. Our environmental handbook has been updated accordingly. This rating system was included
in our vendor supplier scorecard along with social and chemical ratings.
↗ T.15 NUMBER OF CORE FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM) VERIFIED
SCORE
1
2023
2022
Number of factories with FEM verified score
Core T1
Core T2
Core L&P
Core T1
Core T2
Core L&P
A
14
12
3
8
10
2
B+
34
33
8
25
25
1
B-
9
11
2
30
22
7
C
1
3
0
2
8
2
D
1
0
0
0
0
0
Total
59
59
13
65
65
12
Number of factories
131
142
*
L&P: Labeling and packaging
1
Excluding stichd and PUMA United
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↗ T.16 NUMBER OF STICHD FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM) VERIFIED
SCORE
No. of factories with FEM verified score
stichd 2023 (FEM2022)
Core T1*
A
5
B+
15
B-
7
C
2
D
0
Total
29
*
stichd has 32 core Tier 1 factories of which 30 have completed verification. One core factory is a common factory between
PUMA and stichd and hence counted once under PUMA
Further data on the environmental performance of PUMA and our suppliers can be found in the Climate and
Environmental Key Performance Data sections.
↗ G.11 AGGREGATED VERIFIED FEM SCORE FOR PUMA FACTORIES BENCHMARKED WITH
INDUSTRY
1-3
*
Verification in 2023 is for FEM2022; Verification in 2022 is for FEM2021
1
FEM 2022 PUMA and stichd average: 160 factories
2
FEM 2021 PUMA average: 142 factories
3
Industry median FEM (6,980 factories): Filters used: Industry sector: Apparel; Footwear; Accessories (includes handbags,
jewellery, belts, and similar products) and Facility Type: Final Product Assembly; Printing, Product Dyeing and Laundering;
Material Production (textile, rubber, foam, insulation, pliable materials); Packaging Production
The Higg FEM assesses:
• Environmental Management Systems
• Energy use and greenhouse gas emissions
• Water use
• Wastewater
• Emissions to air (if applicable)
• Waste management
• Chemical management (FEM chemical module is explained under the Chemicals section of this report)
61
74
42
69
89
73
45
68
79
49
74
92
82
53
57
73
37
64
82
68
40
Total
Water
Air
WWT
Energy
EMS
Waste
FEM 2021 PUMA average
FEM 2022 PUMA & stichd average *
Industy median FEM 2022
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Since 2020, we have communicated to our core factories our expectation for them to improve their score by
setting up annual goals and using our new grading system. In 2021, 2022 and 2023 we facilitated training
sessions conducted by FEM experts. This training was compulsory for low-performance factories and for
those not familiar with this industry tool to attend. We closely monitor the factories to ensure completion of
the verification of their self-assessment.
Throughout 2023, we continued to provide customised training sessions by FEM experts for our existing core
Tier 1 and Tier 2, as well as non-core Tier 1 suppliers. The training focused on how to improve the Higg FEM
score on low-performing areas for each region. We also facilitated entry-level training sessions for factories
new to the Higg FEM tool. These trainings have helped our suppliers improve their environmental
performance as is visible from the improved average FEM score for PUMA and stichd factories moving from
61% in 2022 up to 68% in 2023. We also facilitated for our suppliers to attend webinars and workshops on
Higg FEM 4.0 to be launched in 2024, organised by SAC. In Vietnam, we facilitated for 61 factories to join the
training programme, To The Finish Line (TFL) initiative, from GIZ for building capacity to transition to Higg
FEM 4.0. The TFL initiative online sessions explained the changes made in this new tool and how to answer
new questions. 26 core factories from six countries participated in a Higg FEM 4.0 pilot initiated by SAC,
after which our suppliers provided valuable feedback to SAC on the new version of Higg FEM.
In 2023, all 131 PUMA core Tier 1 and Tier 2 factories completed the verification of their FEM self-
assessment. We have set a target to achieve an annual 10% increase of the average verified score from 2021
(the goal was to reach 64% FEM score in 2023). We exceeded this target by achieving an average FEM score
of 69%. Improvements are visible in all the sections of Higg FEM as compared to the previous year. PUMA’s
average FEM score is higher than the industry median in each section. In 2023, we included our group
company stichd’s core Tier 1 Higg FEM score. The combined average of PUMA and stichd also exceeded by
achieving the target with an average score of 68%.
The number of C-rated PUMA factories came down from 12 in 2022 to four in 2023. However, one factory in
Brazil which is a new core factory and new to FEM received a D rating. We will provide additional training
and support to improve their performance next year.
In 2023, we continued to closely track factories to ensure the timely completion of their verifications. We saw
the positive impact of our continued efforts to scale up cleaner production and renewable energy projects,
climate action training, chemical projects, chemical management training and wastewater treatment
training on the FEM scores of factories that had joined these programmes. For 2024 we have shared a goal
of an average FEM score of 71% with our PUMA core suppliers, which needs to be reviewed as the Higg FEM
will be going through a transition to Higg FEM 4.0.
Overall, our core factories have a score above 70% on wastewater, water, energy and GHG emissions, and
environment management systems. We see topics like chemicals, air and waste as a key focus. In 2021, we
conducted a risk assessment for chemical and waste and identified actions to be taken in the coming years.
PUMA, as one of the signatory brands under ZDHC, follows up closely on the development and the progress
of ZDHC air emission standards and guidelines and will apply them in the supply chain as applicable, once
details are available. In 2023, we joined the ZDHC air emission pilot which we report in the Water and Air
section of this report.
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↗ T.17 NUMBER OF NON -CORE FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM)
VERIFIED SCORE
No. of factories with FEM verified score
2023 (FEM2022) verified
Non Core T1*
A
18
B+
36
B-
36
C
15
D
4
Total
109
*
Scope for non-core FEM assessment includes only PUMA factories. Does not include stichd non-core factories.
In 2022, we rolled out FEM/Facility Environmental Foundation (FEP) which is a lighter version of FEM, to
non-core factories in our top three sourcing countries (Vietnam, China and Bangladesh) and to the factories
which are participating in the PUMA Vendor Financing Programme. As a continuation, in 2023 we rolled out
FEM/FEP to 154 of our non-core factories. The purpose is to also create a supplier scorecard for our non-
core factories.
Out of 154 factories, 141 completed the self-assessment. Out of these 141 factories, 116 factories used the
FEM tool, and 109 had their score verified by third party. 25 factories used the FEP tool, and 21 have
completed the verification. Most of our non-core facilities that had a verified FEM achieved an A or B rating,
while 15 factories got a C rating and four factories recorded a D rating. We will work with these C- and D-
rated factories to improve their performance by providing training and support in 2024.
Further data on the environmental performance of PUMA and our suppliers can be found in the Climate and
Environmental Key Performance Data sections.
SUPPLIER TRAINING
32% of supplier factories out of the total (656 factories) were provided with Higg FEM training. Currently we
are providing training to core Tier 1 and Tier 2, for which we set goals to increase their FEM score and non-
core Tier 1 factories for which we just required the use of FEM/FEP tool to measure their environmental
performance (in additional to their social performance) in 2023. We will expand the roll-out of the FEM/FEP
tool to licensee factories in the future and will include FEM training for stichd factories in 2024.
The Finish Line (TFL) training by GIZ for Higg FEM 4.0 was only available in Vietnam and hence the
percentage of total supplier factories covered is only 9%.
Similarly, the percentage of factories coverage is only 15% for sustainable material certification training, as
we currently only invite PUMA Tier 1 and core Tier 2 factories supplying recycled and other sustainable
materials/products. We need to expand the scope of this training to include all suppliers in the future to
raise awareness of recycled and other sustainable materials, as we aim at increasing the use of more
sustainable materials in our products.
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↗ T.18 SUPPLIER TRAINING
Training
Training Scope
Topics
Number of
factories
Number of
participants
% factories
which joined
Supplier meetings
All core and non-
core factories
Sustainability updates, best
practices sharing, etc.
559 average
per round
(2 rounds)
1,048
average per
round
(2 rounds)
85%*
average per
round
(2 rounds)
Higg FEM training
PUMA core and non-
core Tier 1
factories
Guiding existing factories to
improve Higg FEM score and
new factories to understand
how to complete the Higg
FEM/FEP module correctly
210
600
32%*
To The Finish Line
(TFL) - GIZ
PUMA core and non-
core factories in
Vietnam
Developing understanding
about changes in Higg FEM
4.0 and helping factories to
transition into new standard
61
294
9%*
Sustainable
Material (TE,
GRS/RCS, RWS)
PUMA Tier 1 and
Tier 2 factories
supplying recycled
and other
sustainable
materials and
products
Guiding suppliers how to
apply for relevant
certification
96
198
15%*
E-KPIs collection
training
Core Tier 1 and Tier
2 factories
in Enablon scope
For core factories how to
correctly fill in the
environmental data
75
188
77%**
*
% of factories joined the training based on total 656 factories. The 656 factories include PUMA core Tier 1 and Tier 2, non-
core Tier 1, stichd factories and licensee factories.
** % of factories joined the E-KPI training, based on a total of 98 factories which are in scope to submit E-KPIs.
↗ CASE STUDIES
Improvement in HIGG FEM Verified score
Being a longtime partner to PUMA, Royal Footwear Group is producing PUMA products at three
factories in Vietnam (Dai Loc Shoes, Sao Viet & Thien Loc Shoes). These three factories actively
participated in different trainings on all sections of Higg FEM provided by PUMA and its training
partner GIZ, and engaged in active consultation with PUMA’s Sustainability Team on its Performance
Improvement Plan. As a result, these three factories significantly improved their verified Higg FEM
total scores as compared to last year. Dai Loc increased its total verified score from 56% to 76%, Sao
Viet from 40% to 77%, and Thien Loc from 46% to 75%. Significant improvements were made in
sections like Environmental Management System, Chemical Management and Air Emissions.
THE INSTITUTE OF PUBLIC & ENVIRONMENTAL AFFAIRS (IPE) IN CHINA
PUMA is actively engaged with The Institute of Public & Environmental Affairs (IPE) which is a non-profit
environmental research organisation based in Beijing, China. IPE is involved in collecting, arranging and
analyzing government and corporate environmental information to build a database of environmental
information. IPE has developed a database called Blue Map and an online platform called BlueEcochain and
both are interconnected. Powered by IPE's Blue Map Database and AI technology, Blue EcoChain platform
provides an efficient means of supply chain oversight for environmental risks in China. Blue EcoChain
enables PUMA to track its suppliers in China for environmental compliance at scale, and sends automated
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updates on regulatory violations and environmental remediation, as well as carbon emission and pollutant
data disclosure continuously on a large scale.
Since 2013, PUMA has used IPE’s Blue Map database to screen its China supply chain and pre-screen its
potential new factories for any legal environmental violation and requires suppliers to improve on their
environmental performance. PUMA also discloses its local supplier list via the IPE supply chain map
platform. In these years, PUMA engaged and influenced its Tier 1 factories in China and their upstream
suppliers, e.g. core Tier 2 and selected Tier 3 suppliers, chemical suppliers, centralised wastewater
treatment plants, solid waste contractors, logistics partners, etc. to join “Blue EcoChain” to monitor and
disclose their own environmental performance. These disclosures include their Pollutant Release and
Transfer Register (PRTR) data, carbon emissions, targets for carbon emissions, and water consumption
reduction. PUMA worked with its core Tier 1 and Tier 2 factories to reduce their greenhouse gas emissions
and encourage them to disclose their action taken and progress made on the IPE platform.
Through the Blue EcoChain platform and engagement with IPE, PUMA influenced its Tier 1 suppliers and
their upstream suppliers to promptly issue public explanations regarding the reason for any environmental
violations and encouraged them to adopt corrective actions and track their implementation. This
supports PUMA Tier 1 factories in China to engage with their upstream suppliers for better practices and
promote transparency.
Since 2021, PUMA published its actions annually on the Brand Stories IPE webpage to communicate to the
public in China about PUMA's activities related to environmental protection.
2023 PUMA CITI & CATI RATINGS
PUMA participated in the first CITI (Corporate Information Transparency Index)
campaign in 2014 and first CATI (The Corporate Climate Action Transparency
Index) campaign in 2018 to score and rank PUMA’s environmental management
and climate action.
In 2023, PUMA jumped seven places compared to 2022 and was ranked number five in CITI out of 742
brands. In the CITI 2023 rating, PUMA did well in responsiveness to inquiries and engagement with IPE,
supply chain transparency, environmental compliance and corrective actions for any violations, energy
conservation and GHG emission reduction. PUMA’s strength is also in publicly disclosed targets on low
carbon and recycled products.
PUMA also jumped four places to be ranked number two in CATI out of 1,504 brands. In this rating, PUMA
climate governance such as policy and board accountability, Scope 1, 2 and 3 emissions and progress
disclosure and targets, as well as product carbon footprint disclosure and disclosures on decarbonisation
actions of our value chain was evaluated as strong areas by IPE. Disclosure of climate action by affiliated
companies, such as the PUMA subsidiary in China, was identified as a major improvement area. Other
improvement areas include the disclosure of our performance against PUMA’s net-zero target and our
action to decarbonize our own operations such as PUMA offices, stores and warehouses.
The details on our climate actions are provided in the Climate section of this report.
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CLIMATE
1OFOR25 TARGETS
• Align PUMA’s CO2 emissions target with a 1.5-degree scenario (that is, what is required to limit global
warming to 1.5 degrees)
• Move 100% of PUMA’s own entities to renewable electricity
• Expand the use of renewable energy at PUMA’s core suppliers to 25%
TARGET DESCRIPTION:
Old science-based CO2 emission target from 2019 aligned to well below 2 degrees:
• Reduce greenhouse gas emissions from PUMA’s own entities (Scope 1 and 2) by 35% by 2030 compared
to the 2017 baseline (absolute reduction)
• Reduce emissions from PUMA’s supply chain (Scope 3: Purchased goods and services) by 60% relative to
sales
New and 1.5 degree aligned science-based CO2 emission reduction target (approved 2023):
• Reduce absolute Scope 1 and 2 greenhouse gas emissions by 90% by 2030 from a 2017 base year
• Continue active annual sourcing of 100% renewable electricity through 2030
• Reduce absolute greenhouse gas emissions from purchased goods and services and upstream
transportation and distribution by 33% by 2030 from a 2017 base year*
*
Target boundary includes land-related emissions and removals from bioenergy feedstocks
Relates to United Nations Sustainable Development Goals 7 and 13
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Work with industry peers on climate action through the Fashion Industry Charter for Climate Action and
the Fashion Pact
• Join industry-level energy efficiency programmes for suppliers in our top five sourcing regions
• Join industry-level programmes for renewable energy in our top five sourcing regions
• Replace all coal-fired boilers at PUMA’s core suppliers
• Reduce emissions from the transport of goods by transitioning to more carbon-efficient modes of
transport
• Gradually transition to materials with a lower carbon footprint such as recycled polyester
• Switch all PUMA offices, stores and warehouses to renewable electricity tariffs or renewable energy
attribute certificates
• Gradually move PUMA’s fleet vehicles to alternative engines (electric or hydrogen)
KPIs:
• Direct CO2 emissions from own entities (Scope 1*)
• Indirect CO2 emissions from own entities (Scope 2*)
• Indirect CO2 emissions from manufacturing, business travel and transport of goods (Scope 3*)
• Percentage of core suppliers covered by energy efficiency programmes
• Percentage of core suppliers covered by renewable energy programmes
• Percentage of core suppliers with coal-fired boilers (Tier 1 and Tier 2)
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*
The GHG Protocol Corporate Standard classifies a company's GHG emissions into three scopes:
•
Scope 1: Direct GHG emissions from sources that are owned or controlled by the company (offices, stores, warehouses)
e.g. office building heating, car fleet emissions.
•
Scope 2: Indirect GHG emissions from the generation of purchased electricity, steam and heating/cooling consumed by
the company
•
Scope 3: All other indirect emissions not covered in Scope 2, such as extraction and production of purchased materials;
transportation of purchased goods and use of sold products and services, business travel, employee commuting, etc.
During the UN Climate Conference in Paris in 2015, PUMA agreed to set a science-based CO2 emissions
target. In 2018 PUMA co-founded the Fashion Industry Charter for Climate Action, an industry-wide coalition
that aims to align the fashion industry’s emissions with the targets included in the Paris Agreement. One
year later, PUMA agreed and published its first science-based emission target (SBT), which was aligned to a
well below 2-degree emission scenario with the SBT Coalition and joined the Fashion Pact, which also
includes a climate action commitment.
With an 85% reduction of own emissions (market-based, incl. the purchase of RECs) and a 65% reduction of
supply chain emissions relative to sales, we achieved our first science-based greenhouse gas reduction
target in 2023, seven years ahead of the target year 2030.
In 2022, we already prepared an updated and more ambitious science-based greenhouse gas reduction target
and aligned the target with a 1.5-degree scenario. We also published a net zero target for 2050 and added a
100% renewable electricity target to our SBT proposal since we already committed to net zero GHG emissions
and 100% renewable electricity as part of our Fashion Industry Charter for Climate Action engagement. Our
updated science-based target was formally submitted to and approved by the SBTi in 2023.
With a 90% absolute reduction target for PUMA's own operations by 2030, the new target sets a much higher
ambition level for Scope 1 and 2 emissions, after the first target of 35% reduction had already been achieved
in 2020, mainly through the purchase of renewable energy and renewable energy attribute certificates. The
SBTi has classified PUMA Scope 1 and 2 targets as in line with a 1.5-degree trajectory.
For Scope 3 emissions, the new 2030 target marks the transition from a target relative to sales (-60%) to an
absolute reduction target of 33%. Given PUMA's strong growth rates, the new target could even be
considered more ambitious.
TRANSITION PLAN TOWARD OUR 2030 SCIENCE-BASED GHG REDUCTION TARGET
During the year 2023, PUMA also developed and published its first climate transition plan. The plan lists the
planned actions and investments toward hitting our 2030 climate targets.
In 2023, PUMA’s Chief Sourcing Officer joined Zero 100, a membership-based research and intelligence
organisation, to accelerate progress on Digital Supply Chain Transformation and the path to zero carbon
emissions. Forward-thinking Chief Operations and Supply Chain Officers of international companies partner
up, sharing a common purpose – to harness new technology to re-invent the production, distribution
and consumption of physical goods around the world.
PUMA CDP CLIMATE SCORE: A
The Carbon Disclosure Project (CDP) is an investor-led coalition that ranks global companies and cities for
their climate strategies and disclosure. PUMA has been a long-term participant in the CDP, and we make
our responses to the CDP questionnaire publicly available via the CDP website. In 2022, for the first time in
PUMA’s history, we received an A score for our climate disclosure with CDP for the reporting year 2021. Until
the end of January 2024, we retained our A score.
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↗ G.12 PUMA CDP CLIMATE SCORES
↗ G.13 2022 CDP INDUSTRY AND GEOGRAPHICAL AVERAGE
PUMA’s rating is better than the average performance of the sector (textile and fabric goods) with an
average rating of B. The overall global average rating stands at C.
Over the last two years, we have made significant improvements in value chain engagement, Scope 3
emissions, risk management processes and risk disclosure, leading to the highest possible rating of A. Our
score increased as a result of a host of initiatives taken, including facilitating climate training programmes
for our suppliers, the participation of our suppliers in industry-wide resource efficiency and renewable
energy programmes, participation in Higg FEM, the recalculation of Scope 3 emissions, in line with the
greenhouse gas protocol, life cycle assessments (LCA) for our products, the preparation of a climate
roadmap for 2030 and a risk assessment.
For more information, please visit the PUMA sustainability website or the CDP website.
CLIMATE ROADMAP AND RISK ASSESSMENT
In 2021 we developed a climate roadmap and conducted a risk assessment using our risk assessment
methodology. This roadmap laid the foundation for our climate transition plan, which was published in 2023.
We see a regulatory landscape with unfavourable policies for renewables in some countries as a high risk.
Furthermore, unstable business in our industry overall can restrain suppliers from investing in technologies
and upgrading their facilities with low-carbon machinery.
Below are some key focus areas for the coming years. Some actions taken since 2021 and continued in 2023
are covered in this report.
• Raise awareness: We realised that suppliers need specific training to achieve the ambitious renewable
energy targets and that challenges vary from region to region. We facilitated certain training
programmes in partnership with industry experts as per the needs of suppliers, such as the possibility of
purchasing renewable energy certificates in various regions. In 2023, we launched a new capacity
development programme, called Supplier Leadership on Climate Transition (LOCT), to enable selected
suppliers to set and achieve Science Based Targets. Our suppliers continued to attend the GIZ Climate
Training programme at their own pace in 2023. The details of these training sessions are provided in the
table in “Climate Training 2023”.
• Knowledge of impact: In 2023, we continued to conduct Life Cycle Assessments (LCA) for two top-selling
products. We also conducted a comparative LCA of three types of polyester team sports jerseys to
evaluate the environmental impacts of virgin polyester, recycled polyester made from PET bottles and
recycled polyester made from recycled post-consumer waste and PET bottles. We also conducted a
comparative LCA study of the environmental impacts of virgin cotton and blended cotton (75% virgin and
25% recycled). We intend to use the outcomes of these LCA studies to increase internal awareness and
improve the products' carbon footprint by increasing the use of low-carbon materials, improving
resource efficiency, optimizing energy use, promoting renewable energy in the value chain and
enhancing the circularity of our products. LCA results are reported in the Products section of this report.
C
2017
B-
2018
B
2019
B
2020
A-
2021
A
2022
A
2023
B
Textiles & Fabric
B
Europe
C
Global Average
Average Performance
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• Internal action: We reviewed factories’ performance scorecards in 2023 based on their Higg FEM overall
score and chemical score with our sourcing leaders. We also discussed with suppliers about their
performance through one-to-one meetings and aligned on the next steps. We initiated a pilot to test a
data platform, which will help us to measure progress more frequently. We will keep our focus on
increasing the use of recycled materials in our products and explore opportunities to use more
biosynthetic materials. In 2023, PUMA upgraded its near-term science-based emissions reduction target
which includes our Scope 1 and Scope 2 emission targets in line with a 1.5-degree Celsius trajectory. We
continue to enroll more factories in cleaner production programmes and renewable energy
programmes. In 2023, the number of core factories with coal-fired boilers reduced from 21 in 2022 to 17
due to our business priorities that implied the revision of our core factory list. Two factories out of 17
have successfully phased out coal and 11 factories have partially replaced coal. The remaining four
factories completed a feasibility study and will initiate replacement in 2024. We remain committed to
phasing out coal from our core supply chain.
• Collaboration and partnership: We will keep our active engagement in the Fashion Charter to drive
collaboration on climate actions and influence policymakers to enable access to affordable renewable
energy. In 2023, we participated in a dialogue event organised by UN Fashion Charter with Bangladesh
policymakers on renewable energy policy.
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
Climate change has been a focus area for PUMA since the publication of the first Environmental Profit and
Loss Account in 2011. As a long-term and A-ranked respondent of the investor-led CDP questionnaire and a
founding member of the UN Fashion Industry Charter for Climate Action, PUMA has shown its commitment
to combatting climate change. Subsequently, we recognise the importance of disclosing climate-related
risks and opportunities in line with the recommendations of the TCFD, which are now being transitioned into
the IFRS standards.
The success of our business over the long term will depend on the social and environmental sustainability
of our operations, the resilience of our supply chain and our ability to manage the potential impact of
climate change on our business model and performance.
Through the implementation of the recommendations set by the TCFD, we summarize the actions PUMA
has taken to review its key climate-related risks and opportunities, and the potential impacts on its business
and strategy.
GOVERNANCE
The PUMA Board of Management takes overall accountability for the management of all risks and
opportunities, including climate change. PUMA’s CEO is responsible for the overall oversight of the group’s
strategy, including the Sustainability Strategy. This includes climate-related targets as stated in PUMA’s
10FOR25 sustainability targets. Besides the oversight of the CEO, PUMA’s Chief Sourcing Officer (CSO)
oversees all sustainability-related topics at PUMA, including climate change, at the management board
level. Responsibilities of the CSO include approving new climate-related targets, strategies and initiatives.
Sustainability falls under the scope of the CSO because the vast majority of the environmental impact of
PUMA’s activity is generated during the manufacturing of our products, which are sourced from
independent third-party vendors. Therefore, to reduce our climate impact, our Sustainability Strategy needs
to be driven through our supply chain into our vendors’ factories and into the components we procure.
Responsibility for these two activities lies with the CSO.
The Supervisory Board Sustainability Committee is handling sustainability at a Supervisory Board level. The
Management Board receives updates on sustainability-related matters quarterly, including those related to
climate change. The CSO has a monthly meeting with the sustainability leads for corporate and supply chain
sustainability in which climate and all other sustainability-related topics are governed. The Executive
Sustainability Committee meets twice a year to discuss and govern cross-functional sustainability-related
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topics, like the sustainability bonus targets. It is comprised of all functional heads of the company, such as
People & Organisation, Sourcing, Finance, IT, Marketing, Risk Management, Investor Relations, Retail,
Logistics and Legal Affairs. Sustainability at a product level is governed in a cross-functional business units
call, where updates on PUMA’s more sustainable product strategy are shared and discussed monthly. To
engage with PUMA’s worldwide subsidiaries on climate change and other sustainability-related topics, the
corporate sustainability department organises a quarterly call in which the nominated sustainability leads
for each PUMA subsidiary take part.
All PUMA leaders globally – from CEO to Team Head level – have clearly defined sustainability targets as
part of their annual performance bonus. These targets are aligned with PUMA’s FOREVER. BETTER.
Sustainability Strategy and focus on our 10FOR25 target areas, including climate change. Climate-related
bonus targets include a reduction in air freight to 0.5% as well as a gradual shift of PUMA’s car fleet to zero
or low-emission vehicles. Targets on recycled polyester also support our Scope 3 GHG reduction. The
targets cover 10% of the overall bonus for members of the Management Board and 5% for other leaders
globally., with climate-related targets accounting for 2,5% and 1.25% respectively.
Our sustainability governance structure is referenced in the Sustainability Organisation and Governance
Structure section.
STRATEGY AND RISK MANAGEMENT
PUMA has analysed risks and opportunities related to climate change for over 10 years and identified
climate change as a material risk to PUMA during its last materiality analyses conducted in 2018 and 2023.
Climate Change has the potential to impact PUMA’s business in the short (0-2 years), medium (2-5 years)
and long term (5-10 years). The climate-related risks can be grouped into physical risks and transitional
risks. Physical risks for PUMA include extreme weather events, such as flooding or heat waves, or water
scarcity, which can influence raw material availability. Transitional risks include all risks related to the
transition to a low-carbon economy, such as changing consumer preferences, policies and regulations, such
as carbon taxes or rising energy prices.
The process for assessing, identifying and managing climate-related risks is the same for all principal risks
and is described in the Risk Management section. All risks are monitored and reported regularly
throughout the year by the risk owners, who are the managers of the functional areas and the managing
directors of the subsidiaries. The risk owners are also responsible for the operational management of the
identified risks. For example, climate risks concerning manufacturing in the supply chain are managed by
PUMA’s Supply Chain Sustainability team.
To identify the impact of potential climate-related risks, a scenario-based analysis of climate-related risks
was commenced in 2022 (see G.16). The analysis is in line with TCFD recommendations by taking into
consideration two different climate-related scenarios: first, to analyse transitional risks, the Net Zero
Emissions by 2050 Scenario (NZE) developed by the IEA was considered. This scenario represents the
development of a low-carbon economy in line with global warming of 2°C or lower. It was also used to
develop our 1.5°C aligned science-based target, which was submitted at the beginning of 2023. Second, the
impact of physical risks was assessed using the SSP2 – RCP4.5 scenario. This scenario relies on the
Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs) published by
the IPCC and reflects the development of greenhouse gas emissions under current government policies,
resulting in warming of about 2.7°C by 2100 (per Climate Action Tracker). The different risk categories
shown in G.16 are taken from our CDP 2023 response.
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↗ G.14 SCENARIO-BASED RISK ANALYSIS ALIGNED WITH TCFD RECOMMENDATIONS
Climate-related risks and opportunities have influenced PUMA’s strategy in multiple areas. The demand for
more sustainable products has influenced our product portfolio and sourcing practices to shift towards
recycled and/or certified materials. On the supply chain side, PUMA invests in supplier programmes
focused on energy efficiency and renewable energy to reduce the carbon footprint of its manufacturing
process. PUMA is investigating and investing further in more sustainable material options, such as
biodegradable or recyclable materials. Additionally, PUMA operates its Circular Lab, under which it
collaborates with innovation partners on different pilot projects, such as a garment-to-garment recycling
process and a biodegradable shoe. Within its own operations, PUMA reduces its carbon footprint by
sourcing 100% renewable electricity since 2020 and by gradually shifting its car fleet to low- and zero-
emissions vehicles.
Climate-related issues also had an impact on PUMA’s financial planning. Direct costs have been influenced
by ESG-linked supplier financing programmes that have been in place since 2016. The programme provides
access for PUMA suppliers to external financing resources with favourable financing conditions.
Additionally, as part of the EU Taxonomy Regulations, PUMA is required to report on capital expenditures
that lead to greenhouse gas reductions. PUMA’s sales are currently not eligible under the EU Taxonomy
Regulation due to the nature of PUMA’s business (sale of footwear and apparel). In 2023, PUMA identified
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investments in zero-emissions vehicles and infrastructure such as charging stations as well as solar PV
installations to be aligned with Taxonomy criteria. The overall Taxonomy-aligned investment amounts to
EUR 910,000. Further information on the EU Taxonomy can be found in the Reporting in Accordance with the
EU Taxonomy Regulation section. Sustainability also influences PUMA’s access to capital as it becomes an
increasingly important topic for attracting equity and investors. In 2023, PUMA received an AAA rating from
MSCI for its sustainability efforts. PUMA is also listed in the FTSE4Good Index. Our Investor Relations and
Sustainability teams are in an ongoing dialogue with investors on ESG topics. PUMA maintains a revolving
credit facility and two promissory notes, which are linked to the achievements of five ESG targets as defined
within our 10FOR25 ESG framework. The targets relate to the sourcing of renewable electricity (climate),
sourcing of materials from certified sources (biodiversity), reduction of water consumption at core suppliers
(water and air), elimination of plastic bags in stores (plastics and the oceans) and community engagement
(human rights).
The results of our scenario analysis are used to ensure the necessary mitigating controls are in place,
support PUMA’s risk management activities and inform future business strategies. We will update our
scenario modeling as more climate data becomes available and regularly reframe the risks and
opportunities to PUMA presented by climate change.
METRICS AND TARGETS
PUMA has been measuring and reporting environmental key indicators for its own operations and its T1 and
T2 suppliers for many years, including energy consumption, carbon emissions, water consumption and
waste management. These are part of the Sustainability section of its Annual Report, which is published
annually and audited by a third party.
PUMA aligns its reporting on climate-related metrics with recognised standards, including the GHG Protocol.
In addition, our 10FOR25 sustainability targets include absolute carbon reductions, renewable energy
procurement and manufacturing of more sustainable products. Further information on our environmental
KPIs can be found in the Environmental Key Performance Data section and throughout this report.
Sourcing 100% renewable electricity for all PUMA entities from 2020 is one of the milestones of PUMA’s
climate change mitigation efforts. For its suppliers, PUMA has a target of sourcing 25% renewable energy
by 2025 (2023: 22.1%). During 2023, our 1.5 degree aligned near-term SBT was approved by the Science
Based Target Initiative: reducing absolute Scope 1 and 2 GHG emissions by 90% (market-based*, including
the purchase of RECs) by 2030 and reducing absolute Scope 3 GHG emissions by 33% by 2030, both from a
2017 baseline year.
• Scope 1 and 2 targets focus on GHG emissions from our direct operations (including electricity and gas
consumption at our stores, offices, internal manufacturing and distribution centres)
• Scope 3 targets relate to indirect GHG emissions in our extended supply chain and the transportation of
finished goods
By the end of 2023, PUMA had already reduced its combined Scope 1 and 2 emissions by 85% and its Scope 3
emissions from purchased goods and services and transportation by 28%. Our efforts in sourcing more
sustainable materials led to 99.2% cotton, 99,7% leather and 85% polyester coming from recycled or
certified sources and eight out of ten products being more sustainable in line with our internal definition. We
also reduced our GHG emissions from materials by 50%.
*
A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission
factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of
energy bundled with attributes about the energy generation, or for unbundled attribute claims.
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As part of its commitment to the UN convened Fashion Industry Charter for Climate Action, and according to
PUMA’s Environmental Handbook, PUMA declared its ambitions to meet a net zero 2050 goal. PUMA
recognises that meeting its climate-related targets is dependent on collective action and focus. Improving
the market conditions for clean energy supply, such as the rate of installation of renewable electricity in
many countries, reducing costs and the availability of power purchase agreements (PPAs) will help shift the
rate of decarbonisation at scale. PUMA believes it has a role to play in helping to shape the policy and
regulations required and is working collaboratively with partners, suppliers and other organisations to
achieve its ambition, including the United Nations Global Compact, the UN Fashion Industry Charter for
Climate Action, the Fashion Pact and Stiftung Klimawirtschaft. PUMA met with representatives of the
delegations of Bangladesh, Indonesia and Vietnam during the UN COP 28 climate conference to promote the
further expansion of renewable energy in those countries.
SCOPE 1 EMISSIONS
Our own direct CO2 emissions (Scope 1) are mainly caused by emissions from our PUMA car fleet and
airplane, as well as emissions from the heating of buildings. We are tackling the emissions from our car
fleet by gradually transitioning to zero-emission vehicles in those countries where the charging
infrastructure is mature enough to support the transition. Starting in 2023, only electric vehicles are allowed
as new additions to our car fleet in the region of Germany, Austria and Switzerland, which includes our
Headquarters and 242 cars. At the end of 2023, 319 out of 905 cars (35%) globally were already low or zero -
emission battery electric or hydrogen fuel cell cars, in line with our bonus target of hitting 30%.
We also significantly expanded the charging infrastructure at our headquarters and selected other offices
and now have over 75 charging stations in operation, including twelve public charging stations at our
headquarters stores that can be used by employees, business partners and customers free of charge.
For the heating of buildings, we use natural gas in 8% of buildings globally and plan to transition these
buildings to biogas or other renewable heat sources over time. Many PUMA buildings globally already use
(renewable) electricity for heating.
Overall we were able to reduce our Scope 1 GHG emissions by 17% between 2017 and 2023, and plan to
reduce these emissions further by 2025.
SCOPE 2 EMISSIONS
PUMA’s indirect GHG emissions (Scope 2) are caused by the electricity used for running our offices, stores
and warehouses, including the charging of electric cars, as well as thermal energy used from district
heating.
All of our offices, stores and warehouses have used renewable electricity via green electricity tariffs or
renewable energy attribute certificates since 2020. This has led to a significant reduction of our Scope 2
emissions (market-based). In addition, the closure of our stores in Russia, which were mostly heated by
district heating, contributed further to the reduction of Scope 2 emissions. At our headquarters, which is by
far the largest consumer of district heat among all PUMA entities, the district heat is created in co-
generation with electricity and by using over 50% biogas. In total, we were able to reduce our Scope 2
emissions by 99% (market-based, incl. the purchase of RECs) since 2017.
Further actions to reduce PUMA’s own greenhouse gas emissions include the use of energy-efficient heat
pumps at our headquarters, frequent energy efficiency audits at our stores, a free public transport ticket for
employees, job-bike-leasing and a meat-free Monday at canteens.
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↗ T.19 SCOPE 1 AND SCOPE 2 CO2e EMISSIONS FROM PUMA
1-4
CO2e Emissions1-8 (t)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Scope 1 – Direct CO2e-
Emissions Fossil fuels*
6,403 6,206 4,456 4,179 6,326 7,678
3%
-17%
Vehicle Fleet
2,639 2,264 2,008 1,985 3,618 4,134
17%
-36%
Heating
1,336 1,536 2,039 2,194 2,708 3,545
-13%
-62%
Air Plane*
2,428 2,405 410 689 2,359
-
1%
Scope 2 – Indirect CO2e
Emissions (location-based)
41,679 35,528 32,545 29,839 40,986 40,029
17%
4%
Scope 2 – Indirect CO2e
Emissions (market-based)
530
643 1,458 1,078 11,533 40,029
-18%
-99%
Electricity (location-based)
41,149 34,885 31,087 28,761 39,282 38,914
18%
6%
Electricity (market-based)
- - - - 9,828 38,914
-100%
District heating
530 643 1,458 1,078 1,705 1,115
-18%
-52%
Total Scope 1-2 (location-
based)
48,082 41,734 37,001 34,018 47,312 47,707
15%
1%
Total Scope 1-2 (market-
based)
6,933 6,849 5,914 5,257 17,859 47,707
1%
-85%
Scope 1-2 Relative to Sales (t
CO2e per € million sales)
(location-based)
5.6
4.9
5.4
6.5
8.6
11.5
13%
-51%
Scope 1-2 Relative to Sales (t
CO2e per € million sales)
(market-based)
0.8
0.8
0.9
1.0
3.2
11.5
0%
-93%
*
In 2022, Scope 3 Upstream Leased Assets was restructured. Previously, this category included the emissions from PUMA Air
Plane and well-to-tank emissions from PUMA Vehicle Fleet. Now, in line with GHG Protocol, emissions from PUMA Air Plane
are included in Scope 1, well-to-tank emissions from PUMA Vehicle Fleet are included in Scope 3 Fuel- and energy-related
activities and Scope 3 Upstream Leased assets includes the emissions from warehouses in PUMA’s value chain that are
operated by a third party.
** A location-based method reflects the average emissions intensity of grids on which energy consumption occurs.
*** A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission
factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of
energy bundled with attributes about the energy generation, or for unbundled attribute claims. PUMA has purchased such
Energy Attribute Certificates in 2023.
1.
PUMA’s greenhouse gas reporting is in line with the GHG Protocol International Accounting Standard. Fugitive emissions
(emissions from unintentional releases or leaks) are not included in Scope 1 emissions.
2. Methodological changes over the last three years have influenced results. In 2020 updated emission factors were applied
and the consolidated structure changed due to full alignment with the GHG Protocol.
3. The consolidation scope follows the operational control approach, including PUMA-owned or operated offices, warehouses,
stores and own industrial sites (Argentina).
4. PUMA applied emission factors from internationally recognised sources, such as the International Energy Agency (IEA)
(2019) and DEFRA conversion factors (2020).
PUMA Annual Report 2023
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↗ G.15 AGREED EMISSION TARGETS (SCOPE 1 AND 2*) (T CO2e) 2023
*
Including renewable energy attribute certificates
↗ T.20 E-KPIS PUMA – ENERGY
1-3
Energy (MWh)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Total energy from electricity
87,267
75,269
67,866
61,365
61,499
64,119
16%
36%
Non-renewable electricity
consumption
0
0
0
0
12,683
52,508
-
-100%
Electricity consumption from
renewable sources (green tariffs and
on-site photovoltaic)
16,032
15,697
13,749
10,839
11,547
11,611
2%
38%
Percentage of renewable electricity
consumption (excluding EACs)
18%
21%
20%
18%
16%
18%
Electricity consumption guaranteed
with EACs
71,235
59,572
54,117
50,526
37,269
0
20%
-
Percentage of renewable electricity
consumption (including EACs)
100%
100%
100%
100%
79%
18%
Total energy from non-renewable fuels
(oil, natural gas, etc.)
6,555
7,541
10,006
10,739
10,975
14,430
-13%
-55%
Total energy from district heating
4,828
5,483
10,795
6,247
7,915
5,155
-12%
-6%
Total energy consumption (PUMA own
entities)
98,651
88,462
88,666
78,350
80,389
83,704
12%
18%
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimates where no real data could be provided.
3
Methodological changes over the last three years have influenced results.
2015
2018
2021
2024
2027
2030
50,000
40,000
30,000
20,000
10,000
0
PUMA‘s emission reduction
1.5 °C pathway
Well-below 2 °C pathway
Approved SBT
PUMA Annual Report 2023
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SCOPE 3 EMISSIONS
↗ T.21 PUMA’S SCOPE 3 CO2E EMISSIONS FROM SELECTED VALUE CHAIN ACTIVITIES
1-6
CO2e emissions (t)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Scope 3 – Indirect CO2e
Emissions from
corporate value chain
1,089,971 1,430,690 1,355,633 1,486,324 1,762,087 1,502,162
-24 %
-27 %
Purchased goods and
services*
991,864
1,278,758
1,242,468
1,389,335
1,631,904
1,409,265
-22 %
-30 %
Fuel- and energy-
related activities**
4,736
4,220
3,700
3,463
3,712
7,433
12 %
-36 %
Upstream
transportation and
distribution
70,412
127,474
106,983
91,775
107,744
71,070
-45 %
-1 %
Inbound
47,812
99,724
85,622
67,842
98,386
64,076
-52 %
-25 %
Outbound***
22,600
27,750
21,361
23,933
9,358
6,994
-19 %
223 %
Business travel
11,499
9,439
2,482
1,751
18,727
14,394
22 %
-20 %
Upstream leased
assets**
11,460
10,799
6 %
-
Total Scope 1-3
(market-based)
1,096,904 1,437,609 1,362,482 1,492,238 1,767,344 1,549,869
-24 %
-29 %
Annual Sales PUMA
(in € million)
8,602
8,465
6,805
5,234
5,502
4,136
2 %
108 %
Total Scope 1-3 Relative
to Sales (t CO2e per €
million sales) (market-
based)
127.5
169.8
200.2
285.1
321.2
374.7
-25 %
-66 %
Total Scope 3 Relative
to Sales (t CO2e per €
million sales)
126.7
169.0
199.2
284.0
320.3
363.2
-25 %
-65 %
*
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed higher accuracy and higher precision compared to other methods, such as
averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit) from the 12
months of data spanning from November 2021 to October 2022.
** In 2022, Scope 3 Upstream Leased Assets was restructured. Previously, this category included the emissions from PUMA Air
Plane and well-to-tank emissions from PUMA Vehicle Fleet. Now, in line with GHG Protocol, emissions from PUMA Air Plane
are included in Scope 1, well-to-tank emissions from PUMA Vehicle Fleet are included in Scope 3 Fuel- and energy-related
activities and Scope 3 Upstream Leased assets includes the emissions from warehouses in PUMA’s value chain that are
operated by a third party.
*** In 2020, upstream outbound values were adjusted to fully cover the e-commerce business and exclude B2B express volumes.
1.
PUMA’s greenhouse gas reporting is in line with the GHG Protocol International Accounting Standard. Fugitive emissions
(emissions from unintentional releases or leaks) are not included in Scope 1 emissions.
2. Methodological changes over the last three years have influenced results. In 2020 updated emission factors were applied
and the consolidated structure changed due to full alignment with the GHG Protocol.
3. The consolidation scope follows the operational control approach, including PUMA-owned or operated offices, warehouses,
stores and own industrial sites (Argentina).
4. Outsourced Tier 1 production is accounted for in the Scope 3 emissions under purchased goods and services, covering CO 2
emissions from all three product divisions (Accessories, Apparel and Footwear).
5. PUMA applied emission factors from internationally recognised sources, such as the International Energy Agency (IEA)
(2019) and DEFRA conversion factors (2020).
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6. For sea freight transportation, PUMA follows the recommendation and new methodology of the Clean Cargo Working Group
that has transitioned from the use of tank-to-wheel (TTW) CO2 to well-to-wheel (WTW) CO2-equivalent emission factors for
all fuels.
GREENHOUSE GAS EMISSIONS FROM PURCHASED GOODS AND SERVICES
PUMA is determined to reduce its carbon emissions, water usage, waste and air pollution at its offices and
in its supply chain. For materials, PUMA strives to use more sustainable materials, such as cotton,
polyester, leather and cardboard.
The purpose of PUMA’s environmental efforts is to ensure that its suppliers are in full environmental
compliance and any negative impact on the environment is reduced. Ultimately, our goal is to achieve a
positive environmental impact. We ask all of our core suppliers to complete the Facilities Environmental
Module developed by the SAC.
For climate, PUMA’s 10FOR25 action plan includes steps such as:
• Work with industry peers on climate action through the Fashion Industry Charter for Climate Action and
the Fashion Pact.
• Joining industry-level energy efficiency programmes for suppliers in our top five sourcing regions.
• Joining industry-level programmes for renewable energy in our top five sourcing regions.
• Replacing all coal-fired boilers at PUMA’s core suppliers.
• Gradually transitioning to materials with a lower carbon footprint, such as recycled polyester.
To reduce the emissions from the production of our PUMA products, we worked with our suppliers on
programmes ranging from energy efficiency to installing on-site solar photovoltaic power plants to generate
renewable energy.
The reduction of our Scope 3 emissions at the factory level is complemented by using more sustainable
(less carbon-intensive) raw materials. In 2023, we used 85% more sustainable polyester, of which 61.8% was
recycled polyester; 99.2% more sustainable cotton, mainly from the Better Cotton Initiative (BCI) and 99.7%
leather from Leather Working Group medal-rated tanneries. In addition, 99.4% of our paper and cardboard
packaging was recycled or FSC-certified paper. By 2025 we aim to use 75% recycled polyester and 100%
recycled and/or certified paper and cardboard.
Supplier Training and Programme
In 2021, PUMA joined hands with other brands and key suppliers under the UN-led Fashion Industry Charter
for Climate Action to develop a standard training programme on climate action for apparel and footwear
suppliers in Asia, in partnership with GIZ. This online training programme provides foundational knowledge
for suppliers on global decarbonisation efforts, GHG emissions accounting, climate target-setting
methodology and solutions to reduce emissions and achieve these targets. The training is available in
English and other local languages such as Khmer, Mandarin, Bengali and Vietnamese. We encouraged our
suppliers to participate in this training, available free of charge.
The training provides foundational knowledge to suppliers on:
• Understanding global decarbonisation efforts
• How to account for GHG emissions
• How to implement available energy solutions to reduce emissions
In 2023, we continued to encourage factories to join the GIZ’s Climate Action Training. 57 participants from
42 factories completed the course and attempted the final exam. 100% of the participants successfully
passed the exam and obtained the certificate from GIZ, with an average score of 75%. Since 2021, 933
participants from 284 factories have completed this course.
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In 2023, we provided training to our suppliers on Science Based Target setting, renewable energy
procurement through RECs, carbon trading and energy efficiency. This climate-related training helped to
accelerate the implementation of rooftop solar projects, increase the purchase of renewable energy
attribute certificates and initiate coal phase-out measures. The progress made in these areas are described
in this report.
In 2023, we approached 21 selected supplier groups representing 40-50% of our business volume to suggest
that they set Science-Based Targets at a company level (covering all of their factories, including the ones
not producing for PUMA). In March 2023, 19 out of these 21 suppliers agreed to set up SBT; one supplier
declined, and one supplier already had an approved target. In October 2023, we engaged with Guidehouse to
launch the Supplier Leadership On Climate Transition (LOCT) capacity development programme. The
programme provides a web-based platform to learn and implement a step-by-step approach for
setting Science Based Targets and guidance on how to achieve those targets. Nine suppliers registered to
join this programme in 2023. However, only eight suppliers joined, since one supplier selected a training
available only after a supplier has set SBT. This supplier will join the programme in 2024. We expect more
suppliers to join in early 2024. We do not expect all 20 suppliers to join this programme, since some
suppliers have the required expertise in-house or are already engaged with a consultant to support them.
The renewable energy procurement training conducted by Monsson Carbon for Vietnam, Cambodia,
Indonesia and the Philippines focused on how to procure energy attribute certificates such as iRECs, while
the training conducted by Envision in China and Taiwan focused on iREC procurement and other green
energy procurement schemes available in the region like green electricity consumption certificate (GECC).
The percentage of training participation for factories in renewable energy procurement is 53%; as it was a
refresher training in 2023, the supplier factories which have already purchased iRECs, or other forms of
green energy certificates did not join.
In 2023, a training on carbon trading provided by IMPAQ (a
third party organisation) was only relevant for
textile/fabric core Tier 2 factories located in mainland China. However, all core Tier 1 and Tier 2 factories
located in China and Taiwan regions were invited to attend for awareness about regulatory requirements in
the area. As per these requirements, heavy industries in Guangdong province with greenhouse gas emissions
of more than 10,000 tons per year or energy consumption of at least 5,000 tons of standard coal per year are
required to be included in a carbon trading scheme. Although the textile sector is one of the potential sectors
to be included, this regulation is still not enforced for the textile sector. Because of this, 53% of core Tier 2
textile factories invited attended this training, whereas only 44% of non-textile core Tier 2 factories joined this
session. However, 76% core Tier 1 factories joined this training due to better engagement with them. In total,
59% of factories invited attended this training. If the scope of these regulatory requirements expands to other
product divisions, we will continue to provide this training in the future.
For the German Training Week on Energy Efficiency programme, organised by GIZ in Vietnam, PUMA was
allocated only eight slots, and eight core factories joined the programme. Hence, the percentage of core
factories which participated relative to the total number of core factories in Vietnam (47) is only 17%.
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↗ T.22 SUPPLIER TRAINING
Training Topic
Scope
Country
Trainer
Number of
suppliers
Number of
factories
Number of
participants
% factories
trained*
Science Based
Target networking
sessions
Suppliers selected
for SBT
Global
Guidehouse/
CDP/
UNFCCC
21
48
215
100%
LOCT program
Suppliers selected
for SBT
Global
Guidehouse
8
24
23
50%
Renewable
Energy
Procurement -
iREC training/
Green Energy
All core factories
Vietnam, China,
Cambodia,
Indonesia,
Philippines,
Taiwan
Monsoon
Carbon/
Envision
36
52
94
53%
Carbon Trading
Basic Introduction
(for textile
industry in China)
All core factories
China, Taiwan
IMPAQ
27
34
48
59%
German Training
Week –
Energy Efficiency
Selected
core factories
Vietnam
GIZ
8
8
8
17%
*
% of factories trained, calculated based on the total the factories in the scope for each subject matter training
To improve the awareness level of PUMA employees, we developed a foundational e-learning training
module on climate action for all employees which is expected to be rolled out in the first half of 2024. In
2023, we launched phase 3 of Clean by Design (CbD) in the China-Taiwan region in partnership with Apparel
Impact Institute (Aii) at two core Tier 1 and five core Tier 2 factories. We also kicked off a new resource
efficiency programme called REF Programme at four core Tier 1 factories in Vietnam in partnership with
ENERTEAM. In early 2024, we will launch an IFC cleaner production programme, called Decarbonization
programme (CaDP) in Cambodia at three core Tier 1 and 1 core Tier 2 factories.
In addition to this, four Tier 1 and three Tier 2 factories participated in various rooftop solar projects in 2023.
The macroeconomic situation and overall uncertainty in the trade remained challenging during the first half
of 2023. Recession fears in various markets, persistent high inflation and elevated interest rates led to
muted consumer sentiment and volatile demand in retail. In addition, elevated inventory levels in the
market contributed to a slower sell-in to the Wholesale channel. This created less demand from the
markets, and we had to adjust our orders accordingly. This explains why we did not launch Renewable
Energy programmes in 2023 to cover 76% sourcing volume of Tier 1, 75% sourcing volume of Tier 2, and
cleaner production programme to cover 74% sourcing volume of Tier 1 and 75% sourcing volume of Tier 2,
as reported in our 2022 annual report.
The values below represent annual savings from completed and ongoing projects (PaCT programme in
Bangladesh, CbD programme in China, Indonesia, Vietnam) from 2019 until the end of 2023:
• Greenhouse gas reduction: 90,182 tCO2e per year
• Renewable energy: 247 MWp of RE capacity (including offsite wind) added in 2021, 2022 and 2023
• Water saving: 2,401,002 m
3 per year
• Energy saving: 177,168 MWh per year
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↗ T.23 SUPPLIER CLIMATE ACTION PROGRAMMES
Cleaner Production programmes
Country
Program/Partner
Scope
Number of
factories*
% Sourcing volume
(globally)
China-Taiwan
Clean-by-Design (CbD)/aii
Energy and water efficiency
T1: 3
T2: 16
2023
Tier 1: 70%
Tier 2: 56%
To be Enrolled
2024
Tier 1: 71%
Tier 2: 62%
Low Carbon Manufacturing
Program (LCMP)/WWF
Energy and water efficiency
T1: 7
Bangladesh
Partnership for Cleaner Textile
(PaCT)/IFC
Energy and water efficiency
T1: 6
T2: 4
Vietnam -
Cambodia
Clean-by-Design (CbD)/aii,
FABRIC/GIZ
Energy and water efficiency,
Coal phase-out
T1: 8
T2: 2
MSMA
Energy and water efficiency
T1: 6
T2: 3
Greening Textile Program
Energy and water efficiency
T2: 2
Indonesia
Clean-by-Design (CbD)/aii
Energy and water efficiency
T1: 3
Mexico**
Sustainable energy for all
Energy efficiency
T1; 2
Total
T1: 35
T2: 27
*
The number of factories represents completed and ongoing projects from 2019 until the end of 2023
** Non-core factories
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↗ T.24 RENEWABLE ENERGY PROGRAMMES
Country
Programme/Partner
Scope
Number of
factories*
% Sourcing
volume (globally)
Vietnam/ Cambodia
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 7
T2: 2
Self-initiative by factories
Rooftop Solar
T1: 5
T2: 8
Self-initiative by factories
iREC/DPPA pilot
T1: 4
T2: 3
China-Taiwan
Self-initiative by factories
Rooftop Solar
T1: 7
T2: 9
Offsite wind, DPPA, iREC
T1: 11
T2: 9
2023
Tier 1: 65%
Tier 2: 60%
Bangladesh
Partnership for Cleaner Textile
(PaCT)/IFC
Rooftop Solar
T1: 2
T2: 1
Self-initiative by factories
Rooftop Solar
T1: 2
T2: 2
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 3 To be enrolled in
2024
Tier 1: 71%
Tier 2: 73%
Indonesia
Clean-by-Design(CbD)/aii
Rooftop Solar/ TIGR
T1: 3
Pakistan
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 2
Other (Argentina,
Brazil, Mauritius,
Philippines, Turkey)
iREC, Geothermal
T1: 3
T2: 1
Total
T1: 49
T2: 35
*
The number of factories represents completed and ongoing projects from 2019 until the end of 2023
Rooftop solar panels from our suppliers in Bangladesh and Vietnam
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Coal-Fired Boiler Phase-Out
We are committed to phasing out coal-fired boilers from our supply chain, mainly from the core Tier 1 and
Tier 2 suppliers, by 2025. In 2022, we mapped our core suppliers and found that 21 of them have coal-fired
boilers. In 2023, the number of core factories with coal fired boilers reduced to 17 due to revisions in the core
factory list, out of which two factories have successfully phased out coal and 11 factories have partially
replaced coal. In 2024, we plan to engage with remaining four factories which have not yet initiated the
transition. We also plan to continue our tracking of factories which are under transition.
↗ G.16 COAL-FIRED BOILER PHASE OUT STATUS
In 2022 PUMA joined the Coal Phase Out Action Group under the UN’s Fashion Charter, with an objective to
collaborate with other brands to expedite the phase-out of coal in our supply chain. We included a coal-fired
boiler question in our on-boarding checklist for new factories in July 2022, to avoid on-boarding such
factories with coal-fired boiler.
As a first step the brands have mapped their supply chain to identify supplier factories with coal fired
boilers, and also identified the overlapping suppliers to prioritize these factories. GIZ joined this programme
as an implementation partner and offered a coal phase-out pilot in Vietnam. This programme has a 10-step
approach to realize coal phase out. Currently we are exploring options to partner with other brands to test
the programme in our supply chain.
↗ CASE STUDY
Coal phase-out
In 2023, Chen Tai (Vietnam) Woven Tapes Enterprise Co., Ltd. successfully phased out the use of coal
for its boiler by switching to rice husk biomass. Not only did this transition allow the facility to reduce
their GHG emissions by 2,600 tCO2e, it also helped the facility to save 20% in fuel costs.
Supplier Climate Targets
Science based targets are ambitious and difficult to achieve. Only large suppliers with capacity and top
management commitment will be able to succeed. Those suppliers are identified through a readiness
survey, climate investment study, long term business potential and in alignment with sourcing leaders. For
the remaining suppliers, we plan to implement a simplified target setting system and hence an in-house
tool is being developed for these suppliers.
Vietnam
53%
China
17%
Taiwan
18%
Cambodia
6%
Turkey
6%
Geographical Spread
Partially replaced
65%
Not started
23%
Done
12%
Implementation Status
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In 2021, we developed two training modules for our core suppliers with the objective of driving climate target
setting. One module focuses on the group of suppliers that need to establish science-based targets, and the
other is aimed at the group of suppliers that needs to establish climate targets based on a simplified tool
developed in-house.
In continuation of efforts made in 2021 regarding SBT for key suppliers, we conducted a climate investment
survey for our top 20 suppliers and evaluated long-term business potential with them in alignment with our
sourcing leaders. We evaluated their readiness level to set a SBT in future.
In 2023, we approached 21 selected supplier groups representing 40-50% of our business volume,
to suggest them to set Science-Based Targets on company level (covering all of their factories including the
ones not producing for PUMA). In March 2023 we kicked it off through a meeting, to go in detail through SBT
process with the help of CDP. 19 out of these 21 suppliers agreed to set up SBT, one supplier declined, and
one supplier already had an approved target. To encourage peer learning and to learn from industry experts
we launched regular networking sessions on SBT. So far, we have completed two this year after the kickoff
meeting in March. One supplier has already an SBT approved by SBTi, one has science-aligned targets
(Scope 1 and 2) approved by World Resources Institute (WRI), nine suppliers are in process of getting
SBT approved.
Supplier Leadership On Climate Transition (LOCT) Programme
In October 2023, we engaged with Guidehouse to launch a capacity development programme called Supplier
Leadership On Climate Transition (LOCT). The programme provides a web-based platform to learn and
implement a step-by-step approach for setting Science Based Targets and guidance on how to achieve those
targets. So far, nine suppliers registered to join this programme in fall 2023. However, only eight suppliers
joined, since one supplier selected a training available only after a supplier has set a SBT. This supplier will
join the programme in 2024. We expect some other suppliers to join in early 2024.
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↗ CASE STUDIES
Resource efficiency
TST Group, which is one of our dyed fabrics suppliers, has implemented an innovative low-carbon
coloration process, at its dyeing mills located in China and Cambodia. The supplier has installed
advanced dyeing machines such as low liquor ratio dyeing machines, which require much less water
than conventional dyeing machines. The factories also switched from batch to continuous
pretreatment (preparation of fabric for dyeing) and continuous after-treatment (finishing of fabric)
which are more efficient processes and hence consume less energy and water. These initiatives are
estimated to reduce water usage by 70% and carbon footprint by 60% as compared to the
conventional dyeing process in China. In Cambodia, it is estimated to reduce water usage by 40% and
carbon footprint by 45% compared to the conventional process. TST has also gone for cold pad batch
dyeing machines in its Chinese factory, which dye fabric in a cold condition, rather than in a heated
condition in the conventional dyeing process. This technology, along with continuous pre-treatment
and continuous after-treatment, is estimated to reduce water consumption by 75%, carbon footprint
by 55% and chemical consumption by 90% compared to conventional dyeing process. The
environmental benefit of these initiatives can be evidenced from water and energy data we collected.
TST China’s GHG emissions are 54% lower, and the water consumption is 16% less than PUMA
suppliers' average for textile mills. TST Cambodia’s GHG emissions are 50% lower and the water
consumption is 10% less than PUMA suppliers’ average for the textile mills.
Solar PV
The Urmi Group, a renowned group of companies based in Bangladesh, has committed to reducing
the greenhouse gas emissions from its business operations by 52.6% (intensity) by 2027 compared to
the baseline year 2017. Therefore, Fakhruddin Textile Mills Ltd., one of the largest textile
manufacturing units of the Urmi Group, installed roof-top solar panels in April 2022 and started to
add renewable energy with a full design capacity of 2.5 MWp. As a result, solar PV is contributing to
increasing the share of renewable energy and lessening GHG emissions into the atmosphere. In
2023, renewable electricity consumption accounted for 10% of the total electricity consumption
(purchased & captive) of the factory. At the same time, the factory lowered its emissions by 1,216
tCO2e of greenhouse gas annually.
Forest, Land and Agriculture (FLAG) emissions estimation
As required by the Science Based Target Initiative (SBTi), in 2023 we undertook a study to estimate the
greenhouse gas emissions from the Forest, Land and Agriculture (FLAG) sector of our supply chain. The
SBT requirement states that we need to set a target for FLAG emissions, if the FLAG-related emissions total
20% or more of our Scope 1, 2 and 3 emissions. PUMA engaged leading sustainability consultant Sphera to
assess the FLAG footprint of our materials; the assessment indicates that FLAG emissions constitute 3% of
the total emissions in 2022 and 4% in the baseline of 2017. Thus, there is no requirement for PUMA to set
separate FLAG targets under SBT. Out of the total FLAG emissions cotton accounts for 55% of emissions
followed by leather which contributes 26%.
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↗ G.17 FLAG EMISSIONS
↗ T.25 FLAG EMISSIONS
2022
2017
Total PUMA GHG emissions (Scope 1, 2 & 3)*
1,975,535
1,836,272
Total FLAG emissions
66,324
74,408
FLAG emissions % of total Scope 1, 2 & 3
3%
4%
*
Emissions data contain further Scope 3 categories, e.g. the product use phase, which was not taken into account in the
further Scope 3 considerations of this report, as PUMA has no influence on it
Scope 3 Category 1 Emissions
In 2023, we continued our assessment of Scope 3 emissions that come from PUMA’s indirect business
activities, mainly in the supply chain, by lifecycle expert company Sphera in line with the Greenhouse Gas
Protocol.
As in 2022, they conducted a comprehensive assessment of our supply chain emissions beyond Tier 1
manufacturing, including Tier 2 manufacturing of fabrics and components, estimated emissions from Tier 3
suppliers and material production using emission factors from their LCA database known as the
GaBi database.
↗ T.26 PUMA’S SCOPE 3 CATEGORY-1 CO2E EMISSIONS FROM SELECTED VALUE CHAIN
ACTIVITIES
1
Scope 3
Emissions
(Category -1)
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2017/2023
Absolute GHG
emissions
(tCO2 eq)
991,864
1,278,758
1,242,468
1,389,335
1,631,904
1,484,935 1,409,265
-30%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Note: Scope 3 category 1 estimation includes GHG emissions associated with goods and services purchased by PUMA from
Cotton
55%
Polyester
0%
Rubber
2%
Paper and
cardboard
14%
Leather
26%
Others
3%
PUMA Annual Report 2023
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its suppliers related to PUMA products and associated packaging. This excludes emissions associated with other goods and
services acquired by PUMA offices, stores and warehouses.
We can see that our absolute Scope 3 emissions from the purchased goods and services category have
decreased by 30% from 2017 to 2023, while material consumption has in increased by 10% during the same
period.
In view of the global macroeconomic situation, which has led to a change in customers' ordering behaviour,
and the normalisation of the supply chain, we saw a decline in the order book in the first half of the year and
stabilisation during the second half, with a return to the pre-pandemic ordering practices. Therefore, we
actively adjusted sourcing activities respectively and continued to provide transparency to our sourcing
partners so they can adjust their capacities accordingly. This explains why material consumption and energy
consumption decreased compared with 2022. This contributed to our absolute greenhouse gas emission
reduction, alongside energy efficiency improvements and the increased use of renewable electricity at a
factory level, as well as the usage of more sustainable materials.
Scope 3 Category 1 emissions mainly originate from two sources; the raw materials and the energy
consumed by our core Tier 1, Tier 2, Tier 3 (production of raw material) suppliers to produce finished
materials and components as well as finished goods. A breakdown of total GHG emissions by source is
presented below.
↗ G.18 GHG EMISSIONS BY SOURCE
Carbon footprint at a supply chain level
Looking deeper into the emissions from our supply chain, we see that absolute GHG emissions from Tier 1
and Tier 2 suppliers were 3% lower in 2023 than in 2017. 65% of greenhouse gas emissions are coming from
Tier 2 factories while 35% of emissions are contributed by Tier 1 factories. Drilling down into product
divisions, we can see that the Tier 2 textile/fabric mills contribute a maximum of 61% followed by Tier 1
footwear factories with 26%. This is mainly due to the higher energy footprint of Tier 2 textile wet processing
units. Further analysis indicates that absolute emissions from Textile Tier 2 factories have increased by
18% while the production of textile/fabric for PUMA factories has increased by 23% in 2023 as compared to
2017. The absolute emissions from Footwear Tier 1 factories have reduced by 17% in 2023 as compared to
2017, while the PUMA production from Tier 1 Footwear factories has increased by 31%. This was achieved
due to the participation of these factories in cleaner production, renewable energy programmes and the
purchase of iRECs.
Absolute GHG emissions from Tier 3 suppliers in 2023 saw a marginal increase of 0.3% compared to 2017. A
closer look at the data indicates that this marginal increase in absolute emissions from Tier 3 suppliers is
mainly due to a rise in the consumption of polyester and polyurethane during this period. Polyester and
Tier 1&2
24%
Tier 3
18%
Materials
58%
Tier 1&2
34%
Tier 3
25%
Materials
41%
Scope 3.1 Emissions (2017)
Scope 3.1 Emissions (2023)
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polyurethane together increased by 27% in 2023 as compared to 2017; this was mainly due to an increase in
sourcing volume but also because our material data quality and accuracy has improved since 2021.
We see opportunities to further scale up cleaner production and renewable energy programmes to more
Tier 1 and Tier 2 suppliers, and also to launch them at some of the spinners (Tier 3).
In 2023, we mapped our core Tier 3 spinning mills for the Apparel division through our core Tier 1 and Tier 2
suppliers. We could identify 20 spinning mills. We collected yarn volume supply for PUMA production in 2022
for 19 mills. These 19 factories represented 25.8% of our total volume of yarns sourced in 2022. The objective
was to engage these factories to collect primary energy data from Tier 3 suppliers to calculate greenhouse
gas Scope 3 emissions rather than estimating the emissions from Tier 3 factories by using raw material
data and subsequently to engage them on cleaner production and renewable energy programmes. We
provided training to these Tier 3 suppliers on energy data questionnaires and asked them to provide the
data. However, we faced many challenges, including a lack of willingness on the part of these Tier 3
suppliers to provide energy data and supporting documents.
Only eight factories submitted data. Out of these eight factories only three factories’ data could be validated.
The remaining five factories did not provide supporting documents. In coming years, we will continue to
encourage these suppliers to submit their data. The 2023 Tier 3 emissions are estimated by Sphera using
its GaBi database.
↗ T.27 GHG EMISSIONS BY SUPPLIERS
1
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Absolute GHG emissions
from Tier 1 and Tier 2
suppliers (t CO2e)
334,123 423,762 358,508 297,573 371,420 382,043
345,361
-21%
-3%
Tier 3 suppliers (t CO2e)
252,918 305,869 284,215 223,909 258,425 193,193
252,251
-17%
0.3%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Note: Tier 1 & Tier 2 emissions are estimated based on actual energy consumption collected from core Tier 1 and Tier 2
factories and extrapolated to cover all Tier 1 and Tier 2 supplier factories. Tier 3 emissions are estimated by Sphera by using
its GaBi database.
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↗ G.19 GHG CONTRIBUTION BY PRODUCT DIVISION
1-2
1
Tier 1: Apparel, Footwear & Accessories factories
2
Tier 2: Leather, textile, polyurethane factories
PROPORTION OF PRODUCTION POWERED BY COAL
Out of the various product divisions, currently coal is only used in leather and textile production. For leather,
around 24% of PUMA production is powered by coal, of which 7.6% in China and 17.0% in Vietnam. For textile,
around 43% of PUMA production is powered by coal. Vietnam contributes the most with 31.8%; the remaining
percentage is shared between Cambodia, China, Taiwan and Turkey. Aligning with PUMA strategies, all
suppliers that are still using coal for their production have set targets and plan to phase out coal.
↗ T.28 PERCENTAGE OF PRODUCTION POWERED BY COAL (CORE TIER 2)
1
China
Vietnam
Total
Tier 2 -
Leather*
7.6%
17.0%
24.6%
Cambodia
China
Taiwan
Turkey
Vietnam
Total
Tier 2
Textile**
3.6%
1.7%
2.3%
3.8%
31.8%
43.2%
*
Core Tier 2 Leather: 5 factories
** Core Tier 2 Textile: 32 factories
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Carbon Footprint At A Raw Material Level
Absolute GHG emissions from raw material consumption fell by 50% even as total material consumption
increased by 10% since 2017. This was achieved due to our continuous endeavour to shift towards more
sustainable materials and other measures. More sustainable cotton and polyester increased from 40% and
47% in 2017 to 99.2% and 85% respectively in 2023. In view of the global macroeconomic situation, which has
led to a change in customers' ordering behaviour, and the normalisation of the supply chain, we saw a
Apparel
6%
Footwear
26%
Accessories
3%
Leather
1%
Polyurethane
3%
Textile
61%
Apparel
9%
Footwear
31%
Accessories
6%
Leather
3%
Polyurethane
1%
Textile
50%
2017
2023
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127
decline in the order book in the first half of the year and stabilisation during the second half. This explains
why material consumption decreased compared with 2022.
↗ T.29 GHG EMISSIONS FROM MATERIALS
1
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Total raw materials (t)
174,390 200,514 187,101 195,039
200,936 179,995
158,509
-13%
10%
GHG emission from
materials (tCO2e)
404,822 549,127 599,849 867,853 1,002,059 549,127
811,654
-26%
-50%
1
Assumptions: During the Scope 3 assessment, it was observed that material data collection has improved over time and
that, since 2021, we have been able to capture the material data comprehensively. For example, 2017, material data was not
available for all types of materials and some material data were incomplete. In the absence of comprehensive raw material
data for 2017, material data was extrapolated from 2020. Furthermore, we observed that the polyester consumption data for
footwear was exceptionally high for 2020 and possibly erroneously overestimated. Therefore, the polyester data for footwear
for 2017 and 2020 was extrapolated from 2019 data.
A breakdown analysis as shown in the following chart indicates that polyurethane (23%) contributes the
most, followed by leather (18%) and polyester (17%). The share of rubber has significantly reduced from 33%
in 2017 to 15% in 2023, mainly due to a reduction in rubber consumption during the same period, while
the share of polyurethane has significantly increased from 7% in 2017 to 23% in 2023, and polyester’s share
has increased from 12% to 17% mainly due to significant increase in polyurethane and polyester
consumption during the same period. The share of leather has fallen from 21% in 2017 to 18% in in 2023. This
is due to a combination of strategies to replace leather with polyurethane and textile and the improved
capture of leather data in 2023, as we collected suede leather and grain leather data separately and suede
leather has a lower carbon footprint than full grain leather.
The analysis for 2023 indicates that we need to focus more on sustainable alternatives for polyurethane,
polyester, leather and synthetic rubber.
↗ G.20 GHG CONTRIBUTIONS BY MATERIALS
1-2
1
Other include: acrylic, linen, lycra, metals, adhesives, etc.
2
Leather is natural leather while polyurethane is imitation leather, also known as synthetic leather
Cotton
11%
Leather
18%
Polyester
17%
Plastic packaging
1%
Rubber
15%
EVA
9%
Polyurethane
23%
Paper packaging
2%
Other
4%
Cotton
8%
Leather
21%
Polyester
12%
Plastic packaging
0%
Rubber
33%
EVA
6%
Polyurethane
7%
Paper packaging
0%
Other
13%
2017
2023
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↗ G.21 ENERGY AND WATER CONSUMPTION AT RAW MATERIAL LEVEL
↗ T.30 ENERGY AND WATER CONSUMPTION AT RAW MATERIAL LEVEL
Material wise analysis
Water Consumption (m3)
Energy Consumption (GJ)
Cotton
30,115,148
255,981
Leather
2,824,342
935,920
Polyester
5,253,305
1,950,459
Plastic packaging
7,520
18,543
Rubber
684,179
2,338,201
EVA
282,703
1,239,101
Polyurethane
495,391
1,977,494
Paper packaging
77,727
143,537
Others
1,793,769
469,798
In 2023, we evaluated the energy and water footprint at a raw material level. The results indicates that the
energy footprint of rubber is the highest (25.1%) followed by polyurethane (21.2%) and polyester (20.9%).
When it comes to water cotton has the highest share (72.5%) followed by polyester (12.6%). We intend to use
this analysis for material selection purposes to reduce the energy and water footprint of our products.
Renewable Energy
In line with our 10FOR25 target to achieve a 25% share of renewable energy for core Tier 1 and Tier 2
suppliers, we have set a goal of 15% renewable energy share for 2023. The share of renewable energy
consumption by Tier 1 suppliers increased from 11.3% in 2022 to 23.1% in 2023 and Tier 2 suppliers increased
from 10.8% in 2022 to 21.7% in 2023. The increase in both tiers therefore has helped PUMA to reach an
overall share of renewable energy of 22.1% in 2023, greatly exceeding our target. This was mainly achieved
due to the participation of the core suppliers in renewable energy projects, followed by the installation of
rooftop solar facilities, switching from coal to biomass and the purchase of energy attribute certificates
by both core Tier 1 and Tier 2 suppliers.
Cotton
72.5%
Leather
6.8%
Polyester
12.6%
Plastic packaging
0.0%
Rubber
1.6%
EVA
0.7%
Polyurethane
1.2% Paper packaging
0.2%
Others
4.3%
Cotton
2.7%
Leather
10.0%
Polyester
20.9%
Plastic packaging
0.2%
Rubber
25.1%
EVA
13.3%
Polyurethane
21.2%
Paper packaging
1.5%
Other
5.0%
Energy Consumption (GJ)
Water Consumption (m³)
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↗ T.31 E-KPIS PUMA TIER 1 & TIER 2 PRODUCTION - ENERGY
1
Energy (MWh)
2023
2022
2021
2020
2019
2018
2017
% Change
2020/2023
PUMA production (Core Tier 1)*
Non-renewable energy
consumption from PUMA
production (Core Tier 1)
201,553
292,459
331,199 221,641 246,160 195,866
194,881
-9.1%
Renewable energy consumption
from PUMA production (Core Tier 1)
60,662
37,322
17,763
3,013
294
1,913.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 1)
23.1%
11.3%
5.0%
1.0%
0.2%
1,625.0%
PUMA production (Core Tier 2)**
Non-renewable energy
consumption from PUMA
production (Core Tier 2)
611,238
744,940
795,673 607,310
586,986
0.6%
Renewable energy consumption
from PUMA production (Core Tier 2)
169,655
90,333
39,317
3,393
524
4,901.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 2)
21.7%
10.8%
5.0%
0.6%
0.1%
3,811.0%
PUMA production (Core Tier 1 and 2)
Non-renewable energy
consumption from PUMA
production (Core Tier 1 and 2)
812,792 1,037,399 1,126,872 828,951 246,160 195,866
781,867
-1.9%
Renewable energy consumption
from PUMA production (Core Tier 1
and 2)
230,317
127,655
57,080
6,406
-
818
3,496.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 1 and 2)
22.1%
11.0%
4.8%
0.8%
0.1%
2,779.0%
*
Core Tier 1 supplier factories Apparel, Footwear and Accessories (62 factories))
** Core Tier 2 supplier factories Leather, PU and Textiles (40 factories)
1
Data includes extrapolations or estimations where no real data could be provided. The values for November and
December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in Microsoft Excel, utilizing data
from January to October of 2023. This approach was chosen after comparing it to alternative methods, considering its
performance against actual historical data, specifically in terms of deviation from the actual values in percentage terms. The
ETS method displayed both higher accuracy and higher precision compared to other methods, such as averaging the last
10/12 months or multiplying the estimated production by the average KPI (per production unit) from the 12 months of data
spanning from November 2021 to October 2022.
Renewable electricity
The share of renewable electricity sourcing by Tier 1 and Tier 2 suppliers has increased from 0.35% in 2017
to 27.4% in 2023. Looking at the Tiers in the value chain, the share of renewable electricity has increased
from 0.18% in 2017 to 18.0% in 2023 by Tier 1 suppliers, while it has increased from 0.74% to a
significant 47.2% for Tier 2 suppliers during the same period including the purchase of RECs by suppliers.
This progress is achieved due to publicly disclosed 2025 goals on renewable energy, one-to-one follow-up
meetings with the suppliers, the participation of factories in renewable energy programmes which led to
the installation of roof-top solar PV and the purchase of RECs. Support from the Sourcing department has
played a major role in engaging with our core suppliers.
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↗ T.32 SHARE OF RENEWABLE ELECTRICITY AS COMPARED TO GRID ELECTRICITY
1-3
Electricity (kWh)
2023
2022
2021
2020
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Total renewable
electricity
91,246,157
64,624,534
14,494,042
3,588,937
817,644
41%
11060%
Total grid electricity
241,651,096
333,408,508
324,910,084
252,665,750
234,323,351
-28%
3%
Share of renewable
electricity
27.4%
16.24%
4.30%
1.40%
0.35%
69%
7783%
T-1 renewable
electricity
40,660,939
13,695,766
11,149,103
1,999,458
298,283
197%
13532%
T-1 grid electricity
185,115,917
266,321,305
218,804,548
169,593,745
164,904,224
-30%
12%
Share of renewable
electricity (T-1)
18.0%
4.89%
4.80%
1.17%
0.18%
268%
9874%
T-2 renewable
electricity
50,585,218
50,928,768
3,344,939
1,589,479
519,361
-1%
9640%
T-2 grid electricity
56,535,179
67,087,203
106,105,536
83,072,005
69,419,127
-16%
-19%
Share of renewable
electricity (T-2)
47.2%
43.15%
3.10%
1.88%
0.74%
9%
6259%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
2
The total electricity does not include captive electricity generation from fossil fuels such as Natural Gas, Diesel etc.
3
The renewable energy includes iREC certificates purchased by core leather, polyurethane, textile factories in the year 2023,
but excludes renewable energy sourced by the Tier 2 core factories e.g., packaging and labelling, trims, footwear bottom and
knitted uppers.
Policy Advocacy
As a part of Policy Engagement working group under Fashion Industry Charter for Climate Action. In 2023,
the UNFCCC organised a policy dialogue event with stakeholders in Bangladesh. The purpose of this policy
dialogue was to initiate an inclusive but focused discussion among key stakeholders in the fashion sector
about how to jointly effect the required changes, identify actions that can be taken in the near-term future to
accelerate renewable energy, support scaling renewable energy solutions, and connect existing efforts on
the ground with best practice case studies.
PUMA participated in this policy dialogue event on February 27
th, 2023, along with other brands. The key
outcomes were:
• The government of Bangladesh remains committed to accelerating transition to renewables.
• Discussions were focused on exploring direct Power Purchase Agreements (PPAs) as a solution for
transiting to renewable energy in Bangladesh.
• The need for fiscal and tax incentives, including upgrade of tariffs were identified as key required policy
interventions.
• Opportunities to identify financing for renewable energy were another key aspect which needs to be
explore.
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GREENHOUSE GAS EMISSIONS FROM THE TRANSPORT OF GOODS
PUMA’s Logistics Team has been working on reducing greenhouse gas emissions from the transport of
goods for several years. Key measures include the optimisation of container loads, as well as reducing
airfreight to an absolute minimum. Air freight reduction is also part of PUMA’s annual bonus targets.
2023 brought progress in several areas:
• We managed to further reduce our airfreight ratio to 0.3%, meaning that only 0.3% of all PUMA goods (by
unit) are transported by air. This is a significant reduction compared to 2019 (before the COVID-19
pandemic) where the value was close to 3%.
• Together with our main logistics service provider Maersk, we've integrated biofuels into our marine
shipments as part of Maersk’s eco-friendly shipping initiative. Since February 2023, the utilisation of
biofuels for transporting goods from our manufacturing sites to the European market has resulted in an
impressive 84.6% reduction in GHG emissions along these routes.
• Our logistics team in the USA was able to expand the use of electric trucks from one to three trucks for
the transport of PUMA goods between the port in Los Angeles and the warehouse in Torrance. We
anticipate that more electric trucks will follow in other countries over the next years.
An electric truck operates at PUMA’s warehouse in California, USA
↗ G.22 SHARE OF GHG EMISSIONS BY TRANSPORT MODE IN 2019 AND 2023
Road
23.6%
Rail
1.0%
Sea
19.1%
Air
56.4%
Road
49.7%
Rail
3.1%
Sea
37.0%
Air
10.1%
2019
2023
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↗ T.33 CO2e EMISSIONS PER TRANSPORT MODE
CO2e emissions (t)
2023
2022
2021
2019
Road freight
33,665
48,345
38,815
24,522
Rail freight
2,103
675
3,153
1,013
Sea freight
25,070
45,891
44,698
19,830
Air freight
6,864
29,751
17,731
58,651
The graph and table above illustrate the relative downturn in the use of air freight compared to other modes
of transport. Our airfreight reduction target helped us reduce the share of emissions from airfreight from
56.4% in 2019 to 10.1% in 2023.
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CHEMICALS
TARGET DESCRIPTION:
• 100% of all PUMA products are safe to use
• Maintain RSL compliance rate above 90%
• Reduce organic solvent usage to under 10 gr/pair
Relates to Sustainable United Nations Development Goals 3 and 6
KPIs:
• RSL compliance rate per product division (as a percentage)
• Percentage of core suppliers with chemicals inventory and MRSL conformance report (ZDHC InCheck
reports)
• Suppliers’ chemical performance (verified FEM scores under chemical management section)
• VOCs used in footwear production (VOC index for shoes)
PUMA follows the precautionary principle and takes measures to prevent harm to human health and the
environment from its products and operations.
All the materials used in PUMA products are subject to our Restricted Substance List (RSL) Testing
Programme to ensure compliance with global chemical regulations. Rather than applying internal testing
standards for our tests, we rely on the AFIRM Group’s Product RSL and on the Manufacturing RSL
developed by the Zero Discharge of Hazardous Chemicals Foundation (ZDHC).
In 2021, we updated our target to RSL compliance rate above 90% considering the potential use of new
chemicals in the new material development and innovation. No material with a failed RSL test can be used
for PUMA products until the failure has been corrected and the material has successfully passed the test. In
this way, we mitigate the risk of product-level RSL failures. We will still track our RSL failure rates to
identify improvement opportunities and to prevent such failures from occurring in future.
At the manufacturing level, as part of our Zero Discharge of Hazardous Chemicals commitment, we
continued to ban the intentional use of priority chemical groups classified as particularly hazardous under
ZDHC standards. This phase-out was supported by the widespread use of bluesign® and OEKO-TEX®-
certified materials. There was no intentional use of the priority chemical groups. Poly- and per-fluorinated
chemicals (PFCs) were used until 2017 for water-repellent finishes on apparel and footwear products. In
2021 we started using Gore-Tex bluesign®-certified membranes and finishes again, which are either
completely PFC-free or free from PFCs of environmental concern. In February 2017, Gore announced the
“Goal and Roadmap for Eliminating PFCs of Environmental Concern (PFCEC)” from the lifecycle of its
consumer fabric products following discussions with Greenpeace. Gore Fabrics Division is still fully
committed to the PFCEC-free goals for its consumer products and is now on track to transition most of its
portfolio by the end of 2025.
Our phase-out of hazardous substances is also reflected in the results of wastewater tests performed by
our wet-processing suppliers. The tests show compliance levels of 98% among the 20 MRSL parameters
listed in the ZDHC MRSL. Most parameters show compliance rates of 100% or close to 100%. Some MRSL
PUMA Annual Report 2023
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134
chemicals were still found in certain samples because we share production lines with other brands and
retailers. Please see our Water and Air section for further details.
A total of 283 ZDHC Gateway accounts are connected with PUMA: 45 are core Tier 1 and 64 core Tier 2
factories and the remaining are non-core factories. These factories are part of different ZDHC programmes,
depending on what applies to them: InCheck reports for MRSL conformance, ClearStream reports for
wastewater conformance, and the Supplier To Zero programme for chemical management.
CHEMICAL RISK ASSESSMENT AND NEXT STEPS
In 2021, we conducted a risk assessment using our risk assessment methodology. We used the Higg FEM
chemical management 2020 for our core suppliers and engaged with AFIRM and ZDHC foundation to review
our risk assessment.
We see a high level of risk in upcoming regulatory requirements. We will keep our engagement with AFIRM
and FESI as a platform to engage with policymakers in different regions and countries such as EU and the
USA, so that standards are achievable by the industry.
PUMA has a long-lasting programme to ensure compliance with industry standards.
We will keep using the China IPE database to screen any environmental violations by factories located in
China producing PUMA products or materials. We will keep monitoring compliance with ZDHC Wastewater
Guidelines, ZDHC MRSL and AFIRM RSL.
We organised MRSL conformance training for PUMA Tier 1 and Tier 2 suppliers and also invited chemicals
suppliers to engage on MRSL conformance engagement. In 2023 we initiated in-check report verification by
an authorised third party to ensure the credibility and reliability of MRSL conformance data.
The details of compliance with ZDHC Wastewater Guidelines, ZDHC MRSL, and Higg FEM chemical
management are described in this report.
2022 PUMA BRANDS TO ZERO – PROGRESSIVE LEVEL
We reached the Progressive Level for the Brands to Zero Assessment 2023. Brands
to Zero is ZDHC’s leader programme for contributor brands. ZDHC developed the
questionnaire and scoring methodology to assess the brands.
All participating contributors in the leader programmes are graded into three performance levels
Foundational, Progressive, and Aspirational. Our rating dropped from aspirational level in 2022 to
progressive level in 2023, due to changes in the rating criteria. Higher weightage is allocated to business
decisions linked to chemical management performance. Though at PUMA, we have a procedure in place to
link business decisions with factories’ chemical performance, we have not had such a case. We launched a
factory scorecard that includes chemical performance in 2021, so far factories have improved their
performance year after year.
In the 2023 Brands to Zero Assessment, we achieved a 100% score for five out of ten performance areas
such as Commitment, Internal Enablement, Supply Chain Engagement, ZDHC Gateway Chemical Module,
and ZDHC Wastewater Guidelines, as a result of our strong commitment to enhancing sustainable chemical
management in our supply chain.
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FEM CHEMICAL MODULE
PUMA has moved from individual brand chemical and environmental audits to using industry-wide tools,
such as the Higg Index Facility Environmental Module (FEM) 3.0. PUMA requires an annual external
verification of the self-assessment FEM modules (verification visits are announced). This external
verification may be completed by approved verifiers from PUMA’s internal team, other brands, or third-party
organisations on the approved list from SAC. The FEM Chemical Management Section measures factory
performance from inventory and purchasing through production, storage, and waste. PUMA’s Chemical
Performance Rating System is based on the ratings developed from the factories’ verified Higg FEM scores
under the chemical management section as verified by SAC-approved verifiers: A, B+, B-, C and D. The
minimum passing grade from a Chemicals perspective is 40% (i.e., only A, B+ and B- ratings are a passing
score) and C and D are failure ratings. This rating system was presented during meetings of suppliers and
sourcing teams in 2021 and was implemented gradually during 2022 and 2023. Our Chemicals handbook has
been updated accordingly. The rating system was included in vendor supplier scorecards along with social
and environmental ratings.
The table shows the aggregated verified FEM 2022 chemical module scores (median) for PUMA core
factories with industry benchmarking. Compared to the industry, the overall verified FEM score for our
factories is higher than the industry median score.
↗ G.23 AGGREGATED VERIFIED FEM CHEMICAL SCORE FOR PUMA FACTORIES BENCHMARKED
WITH INDUSTRY
1
*
FEM 2022 PUMA and Stichd average: 160 factories; FEM 2021 PUMA average: 142 factories; stichd has 32 core Tier 1 factories
of which 30 have completed verification. One core factory is a shared factory between PUMA and stichd and hence counted
once under PUMA
** Industry median FEM (6,980 factories): Filters used: Industry sector: Apparel; Footwear; Accessories (includes handbags,
jewelry, belts, and similar products) and Facility Type: Final Product Assembly; Printing, Product Dyeing and Laundering;
Material Production (textile, rubber, foam, insulation, pliable materials); Packaging Production
1
Verification in 2023 is for FEM2022; Verification in 2022 is for FEM2021
In 2023, PUMA continued to use the Higg Facility Environmental Module (FEM), an industry tool, to measure
chemical management performance through the Higg FEM Chemical Management Module, which tracks
purchasing and inventory management, production, storage, and waste locations. This tool is also used to
measure Chemical Management performance for stichd core factories.
In 2022, we communicated our expectation to the PUMA core factories that they improve their verified FEM
Chemical Management score to 46% in 2023. We exceeded this goal with a FEM Chemical Management
score for PUMA of 51%. The combined average of PUMA and stichd’s chemical module score also exceeded
by achieving the target with an average score of 49%. The industry median score is 32%.
29%
39%
49%
32%
FEM 2020 PUMA average FEM 2021 PUMA average FEM 2022 PUMA & stichd
average*
FEM 2022 Industry
median**
+26%
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During 2023, we continued to engage with our PUMA core Tier 1 and Tier 2 factories in capacity-building
activities and projects in chemical management, for factories with a low Higg FEM Chemical Module score.
We worked together with industry expert groups like ZDHC, AFIRM as well and ZDHC-approved laboratories
to organise training webinars and develop training videos in local languages.
PUMA also continued to join the Chemical Management Improvement (CMI) Programme of GIZ to improve
the factories’ performance. We collaborated with other brands to nominate participating factories in
Vietnam for a tutor-assisted and onsite consultancy programme. For other countries, the factories were
invited to join online training on chemical management developed by GIZ.
The improvement in the MRSL conformance rate also contributed to an increase in Higg FEM Chemical
Management score.
In 2024, we will continue to engage with our core Tier 1 and Tier 2 factories in capacity-building activities and
projects in chemical management. We will organise customised training sessions by SAC-authorised
trainers. The training sessions will focus on Higg FEM 4.0, such as key updates and their relevant impact on
their facility for a smooth transition to the new version.
SUPPLIER TRAINING
A series of training sessions were conducted in 2023, covering chemical management in input, process and
output phases, in collaboration with ZDHC, accredited third-party laboratories and external consultants.
ZDHC SUPPLIER TO ZERO ASSESSMENT
In 2023, our factories participated in the ZDHC Supplier To Zero programme, a ZDHC Chemical Management
System (CMS) Framework that contains a chemical management checklist to help factories identify
opportunities to improve their chemical performance. 77 core Tier 1 and core Tier 2 factories completed the
ZDHC Supplier To Zero assessment. Almost all of them completed their assessment at the end of 2023 and
we will monitor their improvement in 2024. As a result of this programme, the average Higg FEM Chemical
Management score of the 58 factories which participated in this programme in 2022, improved from 36% in
2022 to 55% in 2023.
CHEMICAL MANAGEMENT IMPROVEMENT (CMI)
Chemical Management Improvement (CMI) training course is an initiative by GIZ. The purpose is to
develop the knowledge and capacity of the team in charge of chemicals at factories. In 2023, 40
participants from 23 core factories completed and passed the course.
In Vietnam, the training aims to develop a sound knowledge of the responsible management of chemicals,
improving capacities for the corporate environment, safety and health, and resource management in
relevant industries. Four core factories in Vietnam joined this programme and received onsite consulting
from Chemical Management Advisors (CMA) assigned by GIZ, such as Leadership and Sustainability
consultancy company. After the consulting, the factories were requested to submit an Action Plan to
improve chemical management, CMA will review this and provide recommendations. 24 participants from
these four factories joined and completed this programme in 2023. 100% of participating factories worked on
improvement plans after these training sessions.
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↗ T.34 SUPPLIER TRAINING
Virtual training
Training scope
Topics
Number of
participants
Number of
factories
% of factories
which joined*
MRSL
(jointly organised with a
ZDHC-approved laboratory)
Conducted 3 sessions in
3 different languages
Core Tier 1 and
core Tier 2 in
MRSL scope
• ZDHC MRSL V3.1 and
ZDHC MRSL
Conformance Guidance
V2.0
• How to improve MRSL
conformance rate
258
98
92%
Chemical Inventory
Management/Bhive
(jointly organised with a
ZDHC-approved solution
provider)
Conducted 4 sessions in
4 different languages
Remaining core
factories in MRSL
scope don’t have
InCheck Report
• PUMA Chemical
Management
Programme
• Chemical Inventory
Management / Bhive
InCheck report
introduction
22
11
92%
ZDHC InCheck verification
(jointly organised with a
ZDHC-approved solution
provider and a ZDHC-
approved laboratory)
Conducted 3 sessions in
3 different languages
Core Tier 1 and
core Tier 2 in
MRSL scope
• ZDHC MRSL/InCheck
report
• ZDHC verified InCheck
level 1 & PUMA
InCheck Verification
requirement
168
96
91%
RSL
(Jointly organised with
accredited third-party
laboratory)
All Tier 1 and Tier
2
RSL standard and testing
matrix update and
implementation
452
Approx. 160
24%
*
% of factories joined the training, calculated based on the total the factories in the scope for each subject matter training
In 2023, Chemical Management training sessions covered MRSL conformance and factory chemical
management. Ten training sessions were conducted in four different languages. More than 200 factories
and nearly 450 participants were invited. More than 90% of participants were satisfied with the training.
These training programmes helped our suppliers to improve their understanding of PUMA and industry
requirements and to improve the effectiveness of their Chemical Management Systems. After the training,
the core factories with low MRSL conformance rates developed an Action Plan to improve MRSL
conformance. We received and reviewed Action Plans from 13 factories to facilitate their implementation.
We also encouraged the suppliers’ chemical management teams to attend training courses under ZDHC
Academy as conducted by ZDHC-approved service providers. Examples of the training courses that PUMA
suppliers attended include ZDHC Chemical Management System (CMS) and Technical Industry Guide (TIG)
training.
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RESTRICTED SUBSTANCE LIST (RSL)
Between January and October 2023, we received 6,130 RSL tests and material certification submissions with
an overall RSL compliance rate maintained above 98%. Materials found to be non-compliant with PUMA RSL
cannot be used for PUMA products and suppliers need to arrange corrective actions, remediation and retest
the materials. This is to ensure that PUMA products are compliant with our RSL requirements.
↗ G.24 RSL COMPLIANCE RATE BY DIVISION 2023 (JAN-OCT) (%)
↗ T.35 RSL TEST STATISTICS 2020-2023 (JAN-OCT)
2023 (Jan-Oct)
2022
2021
2020
Product
division
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
Footwear
4,622
99.1
5,350
98.6
5,847
98.8
5,117
99.3
Apparel
1,018
99.5
1,499
99.3
1,467
99.0
1,318
98.9
Accessories
441
92.7
846
96.5
737
94.4
878
96.8
Others
49
95.9
156
96.2
133
97.7
152
91.4
Total
6,130
98.7
7,851
98.5
8,184
98.4
7,465
98.8
RANDOM TESTING
PUMA performs due diligence random RSL tests on high-risk materials of finished products. By
October 2023, we had tested 130 materials in nine finished products across footwear, apparel and accessories
from different suppliers in different sourcing regions, and the pass rate was 99% as of October 2023.
All tested products are compliant with the legal requirements. The supplier took follow-up action to improve
the failed component found.
92,7%
99.5%
99,1%
95,9%
98,7%
Accessories
Apparel
Footwear
Others
Overall (Jan-Oct)
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MANUFACTURING RESTRICTED SUBSTANCE LIST (MRSL)
Regarding MRSL conformance, we use ZDHC MRSL, an industry standard adopted by many brands/retailers
at the supplier level. Out of 131 core factories, 25 factories do not use chemicals during the manufacturing
process and therefore are out of the scope of MRSL.
In 2023, 96 of our core factories used either BHive, CleanChain, or E3 tools to track MRSL compliance. 86%
of Tier 1 factories and 94% of Tier 2 factories under the scope of our MRSL programme have an InCheck
Report, issued by ZDHC-approved solution providers to track MRSL compliance. These are the chemical
management platforms used to manage chemical inventory and generate Performance InCheck Reports,
which provide a summary of the MRSL conformance of the factory’s chemical inventory.
↗ T.36 MRSL STATUS*
Number of factories
In MRSL scope
With Chemical Inventory List
With Incheck Report
Core Tier 1
43
37
37
Core Tier 2
63
59
59
Total
106
96
96
*
The data is based on the Aug/Sep/Oct InCheck Report and only includes factories with a complete Chemical Inventory List (CIL)
The BHive app uses OCR technology to allow manufacturing facilities to take smartphone photos of
chemical product labels, generate a full and accurate chemical inventory, and quickly identify which
chemical products meet MRSL requirements used by many brands and retailers. Facilities can then see
which chemicals they should keep using and which they should phase out.
↗ CASE STUDIES
Gold Emperor Group is a footwear manufacturer in China that developed an Action Plan to improve
MRSL conformance in 2023. They analysed the MRSL conformance rate, based on the January to
July 2023 InCheck reports to make a list of the top Non-conformance Chemicals. Then they engaged
with the concerned chemical suppliers to request that they register in ZDHC Gateway platform and
submit the evidence that their chemicals comply with ZDHC MRSL (at least level 1) on this platform.
The factory improved its MRSL conformance rate from 31% in 2022 to 92% in 2023. This conformance
rate is very high compared to PUMA's average MRSL conformance rate of 71%.
Active Creation under DSC group is an insole factory in Vietnam that joined the Chemical
Management Improvement (CMI) programme of GIZ to improve its Chemical Management
performance. Under this programme, the factory completed training courses on chemical
management systems through an online platform. As part of this programme, a Chemical
Management Advisor visited the factory and prepared a Performance Improvement Plan. As a result,
this factory has significantly improved its verified Higg FEM Chemical Management scores from 18%
in 2022 to 60% in 2023.
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↗ T.37 MRSL CONFORMANCE
No. factory have InCheck report
96
No. factory has achieved MRSL target
59
% factory has achieved MRSL target
61%
Average MRSL conformance rate
71%
Based on a baseline of 45% in 2021, we set a goal of 70% MRSL conformance in 2023 for all factories with an
InCheck report. We exceeded the 2023 Goal with an average MRSL conformance rate of 71% for 96 factories
with an InCheck report. 59 out of 96 core factories reached a conformance rate higher than 70% MRSL
conformance by weight. 37 factories did not reach 70% MRSL conformance rate.
In 2024, we will strive for all core factories to have an InCheck report. We will organise customised training
sessions together with ZDHC and ZDHC-approved third-party laboratories, to improve MRSL conformance
rate for the factories. 2024’s MRSL conformance goal is 80% for all factories with an InCheck report.
In 2023, we worked with ZDHC-approved verifiers to conduct a verification of InCheck. The Verified InCheck
is an on-site review to establish credibility and trust in the chemical inventory that was used by the supplier
to generate their Performance InCheck Reports. The verification is done by a ZDHC-approved third-party or
second-party (brand representative) verifier who conduct “spot check” verification of specific parameters.
To pass the verification ≥ 80% of the spot check parameters need to be validated, then the factory gets a
passed Verified InCheck checkmark on their ZDHC Gateway account. Out of 96 core factories with InCheck
report, 79 went through the verification process. 75 obtained a passed verified InCheck report. The four
factories with a failed InCheck verification (less than 80% validation rate) were required to conduct a Root
Cause Analysis, create a Corrective Action Plan and re-verify after at least three months. We will follow up
on the implementation of their action plan and will re-verify in 2024.
Besides using a chemical inventory to control input chemistry, we also use wastewater tests conducted by
accredited independent laboratories to ensure no harmful chemicals are released through the wastewater
of our manufacturer’s facilities with wet processing. The results of these tests show a compliance rate of
over 90% for each parameter, with most parameters scoring 99 or 100% compliance.
More details on wastewater testing are provided in the Water and Air section of this report.
VOLATILE ORGANIC COMPOUNDS
With much collaborative effort, we continue to edge closer toward our 2025 target of limiting volatile organic
compounds (VOC) emissions to 10 g per pair of footwear produced. Although we faced certain supply chain
difficulties in 2023, including the increased bonding requirements for our fast-growing performance
categories, we have again managed to reduce our VOC and for 2023 we are reporting 12.5 g per pair. Looking
towards 2025, we remain confident of achieving our 2025 target, through the increased use of water-based
adhesives, as well as further innovations within our adhesive suppliers.
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↗ G.25 VOC INDEX DEVELOPMENT OVER TIME
1
1
Since 2019 figure-based for core suppliers in alignment with the general reporting scope.
Actual
EU Eco Label (18 gr/ pair)
2025 Target (10 gr/pair)
70
60
40
20
10
0
50
30
g / pair of shoes
Year
66.7
56.2
46.8
43.0 42.2 39.8 41.2 40.2 37.0
33.1 30.7 28.7
24.1 21.2 20.9 17.7
15.6 14.7 13.6 13.2 12.5
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
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WATER AND AIR
TARGET DESCRIPTION:
• Industry good practice for effluent treatment is met by 90% of core PUMA suppliers with wet-processing
facilities
• Industry good practice for air emissions is met by 90% of core PUMA suppliers with significant emissions
• Reduce water consumption at PUMA core suppliers per pair or piece by 15% (based on 2020 baseline)
Relates to United Nations Sustainable Development Goals 6, 14 and 15
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Ensure regular wastewater testing at relevant suppliers
• Ensure regular air-quality assessments at relevant suppliers
• Support the development of an industry-wide air quality standard
KPIs:
• Percentage of core suppliers meeting good practice standards for wastewater
• Percentage of core suppliers meeting good practice standards for air emissions
• Percentage of water saved per pair/piece
WATER ROADMAP AND RISK ASSESSMENT
In 2021 we developed a water roadmap and conducted a risk assessment using our risk assessment
methodology.
WATER ROAD MAP
Below are some key focus areas for the coming years. The measures below are a continuation of the ones
started in 2021.
• Raise awareness: As a part of Higg FEM training, we provided training to suppliers on how to improve
their score in water and wastewater sections. The cleaner production programmes like Clean by Design
(CbD), and PaCT provided support to suppliers to help them reduce water consumption in selected core
factories. The targets on water consumption reduction and ZDHC wastewater compliance rate were
communicated to the suppliers during supplier meetings. We also reviewed these KPIs in one-to-one
meetings with our core suppliers.
• Knowledge of impact: We continued our Life Cycle Assessment (LCA) journey for our top selling
products. In 2023 we conducted LCA of three types of sports jerseys made of virgin polyester, PET
recycled polyester and RE:FIBRE polyester. We also completed an LCA to compare cotton fabric with a
75/25 blend of virgin and recycled cotton. LCA results are reported under the Products section of this
report. As a part of Higg FEM self-assessment the core suppliers and selected noncore suppliers have
conducted water risk assessments by using either the WRI Aqueduct Tool or the WWF Water Risk
Filter. In 2023, we conducted a waste governance mapping for our top three sourcing countries,
summarised their water policy landscape and mapped key local stakeholders. We also conducted a
water risk assessment for our wet processing core factories.
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• Internal action: Our Material and Development teams continued to launch products with a reduced
water footprint. We created a Microsoft excel tool for internal decision making which compares the
environmental impact of alternative materials. Our suppliers improved their efforts to recycle treated
wastewater, process optimisation, implement rainwater collection etc. to reduce the water footprint in
the supply chain. Some of the case studies are presented in this report.
• Collaboration and partnership: We continue to participate in industry-wide cleaner production projects,
which include water efficiency measures.
WATER RISK ASSESSMENT
WATER RISK ASSESSMENT AT OUR OWN OPERATIONS
In 2022 we added a water risk mapping for our PUMA sites (offices, stores and logistic centres) globally.
Using the WWF Water Risk Filter, we identified 164 sites in areas of water scarcity. For the sites, we
identified the water consumption and compared it to the water consumption of similar sites (offices, stores
and warehouses separately assessed). We also published an environmental handbook for our entities with
recommendations for water-saving measures. In 2023 we followed up with the identified sites and asked for
planned or implemented actions on water savings.
At our headquarters in Herzogenaurach, we collect rainwater on our property and use it in the office and the
surrounding green area. This helps us reduce our freshwater consumption and water costs.
Most of the other PUMA-operated sites globally are rented and both, rented as well as non-rented, none of
the sites use water for industrial processes. Therefore, our ability to reduce water consumption at our sites
is limited to using water-efficient kitchen equipment and sanitary facilities.
WATER RISK ASSESSMENT IN THE SUPPLY CHAIN
DETOX.Live is a public disclosure platform operated by ZDHC that provides an overview of suppliers and
their input and output control performance, including facility wastewater performance according to ZDHC
Wastewater Guidelines. Factory performance, after uploading the test data to ZDHC Gateway Wastewater
Module, is shown in three different colour codes on the public DETOX.Live map: green – facility meets the
ZDHC requirements, red - facility does not meet requirements, and orange - facility does not meet the
requirements but a CAP (Corrective Action Plan) was submitted.
We will use the DETOX.Live platform to check the wastewater performance of new factories that have not
connected with PUMA on the ZDHC Gateway. We can know whether new factories have implemented ZDHC
Wastewater Guidelines, and what their wastewater performance is like.
PUMA has also adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by geography, commodity and issue.
• Complete a risk assessment for suppliers, factories and sites.
• Manage risks that are material for each supplier, factory or site.
In 2023, we conducted a water risk assessment for 62 wet processing core Tier 1 and Tier 2 factories located
in six sourcing countries: Vietnam, China, Bangladesh, Taiwan, Cambodia, Turkey and Indonesia. We used
the WWF Risk Filter and WRI Aqueduct. With the WWF Risk Filter, we assessed basin risk covering water
scarcity, water quality and regulatory risk. With WRI Aqueduct, we assessed physical risk quantity and
quality, as regulatory and reputational risks.
We identified which factories are located in high and very/extremely high-risk areas. Then we looked at their
water KPIs, ZDHC wastewater standards conformance, MRSL compliance rate and their water consumption
reduction initiatives to mitigate water risks.
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Out of 62 wet processing factories, 50 have a high and extremely high-water risk level as per the WRI
Aqueduct. Out of these 50 high and extremely high-water risk level factories, 26 have a FEM 2022 water
module score higher than PUMA average, 31 factories have MRSL conformance rate higher than the PUMA
goal, 35 factories comply with ZDHC wastewater compliance, 15 have water KPIs above PUMA average and
13 factories have wastewater recycling practices. In the coming years, we plan to work with high and
extremely high-risk factories that do not have adequate risk mitigation measures in place. These activities
will include providing training and support in terms of improving MRSL conformance, corrective action
plans for ZDHC wastewater failures, improving Higg FEM water module score, enrolment in resource
efficiency programmes where possible, raising awareness of wastewater recycling and implementing water
reduction initiatives.
WATER GOVERNANCE
In 2023, we conducted a water governance mapping for our top three sourcing countries, namely Vietnam,
China and Bangladesh. We looked at the water policy landscape and identified key stakeholders. Challenges
and opportunities in water and wastewater management were also identified for each of the regions. We
found that water, wastewater policy and regulations are evolving with stringent requirements being
introduced progressively. We also see that interesting water projects are being undertaken in these
countries on water reduction and water recycling.
Vietnam has a national strategy on water, regulations on water security, water protection and development.
The five countries (Vietnam included) under the Mekong River Commission promote and coordinate the
sustainable management and development of water, for the mutual benefit of these countries and their
citizens’ well-being through a 2030 strategy. In addition, Vietnam has a national 2030 Water Resource
Strategy with a view to 2045. There are some fiscal incentives in place, such as tax reduction or exemption
schemes for the effective use of water. There are resource efficiency programmes such as FABRIC
programme by GIZ, HSBC water programme, Clean by design by Aii and WWF’s Greater Mekong Delta,
Vietnam improvement programme by IFC, and Race to Top by IDH. There is a need for more public-private
partnership projects to develop further competence for green business or to encourage green
production. There is also a legislation gap related to groundwater withdrawal.
China has an elaborate regulation on water and wastewater. In 2019, the country introduced the Developed
National Water Conservation Plan. The fourteenth five-year plan released in 2022 focuses on national water
security over the next 100 years, to target flood control and drought relief, utilisation of water resources,
optimal allocation of water resources to prevent uneven water distribution and aquatic ecology protection.
Water/resource efficiency improvement programmes launched in China include WWF’s water stewardship
programme, GIZ’s FABRIC programme, and the Clean by Design programme by Apparel Impact Initiative.
The Institute of Public & Environmental Affairs (IPE) publishes a Water Map, to visualise China’s ground
water and drinking water source quality over the years.
China is still having critical issues with the unbalanced distribution of water resources which leads to water
stress in specific areas, especially the east of the country where industries are blooming, and the population
is rapidly growing.
Bangladesh's latest regulation on water was introduced in 2013 and introduces amendments and new
regulations to promote water conservation in the country. Legal frameworks need to be consistent and
integrated, and account for all major water impacts and risks within Bangladesh. Falling groundwater
tables combined with the projected increased water abstraction rates are likely to threaten industrial
production. The cost of developing alternative water sources is substantial and could hinder growth. The
country is prone to flooding with a very high-risk rating by the WWF Risk Filter. Water Partnership for
Cleaner Textile (PaCT) by IFC and Sweden Textile Water Initiative (STWI) by Stockholm International Water
Institute are a few successful resource/water efficiency improvement programmes implemented in the
country.
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We mapped our core factories in these three countries to evaluate the risks and determine if mitigation
measures through our water-related goals and the factories' own initiative address these risks.
In coming years, we will engage with relevant stakeholders to promote water conservation and recycling in
these key sourcing countries.
LCA WATER DATA
In 2023, we did an analysis of Life Cycle Assessment (LCA) studies conducted during 2021 to 2023 with a
focus on water footprint*. The objective was to come up with an actionable framework for material selection
that would reduce our water footprint. Six footwear products, five apparel products, one accessory
product** and three types of cotton fabrics were analysed. The outcome is summarised below.
Among the three product divisions, the water footprint of apparel products was the highest, followed by
footwear and accessories.
Apparel: We found out that the consumer use phase of apparel products has the highest impact on the total
water footprint (44 to 81% of total lifecycle water footprint), which is due to consumers washing garments at
home. Since the use phase impact is not under our control, we excluded it from our water footprint
analysis. We observed that the fabric dyeing process at Tier 2 factories has a larger water footprint (8 to 29%
of the total lifecycle water footprint excluding the use phase) as compared to other manufacturing
processes such as spinning, knitting, garment manufacturing and packaging. It was found that the water
footprint of cotton is larger than that of polyester material. This is mainly due to the water consumption
during cotton cultivation. This also explains why recycled cotton has a smaller water footprint than virgin
cotton. From a water impact perspective, recycled polyester appears to be the best option. The analysis
indicates that selecting materials with less water impact such as recycled cotton and polyester and
materials made of Better Cotton fibre helps to reduce our water footprint. Better Cotton helps farmers to
use water in a way that is environmentally sustainable, economically beneficial and socially equitable. This
water stewardship approach can improve crop yields, strengthen resilience to climate change, minimise
negative impacts on water quality and enable fair water access for all users in a catchment area. The
analysis also indicates that we should focus on improving the water efficiency of the dyeing mills. This could
include the installation of low-water ratio dyeing machines, waterless dyeing machines and recycling of
wastewater.
Footwear: The Life Cycle Assessment (LCA) of footwear highlights the various environmental implications
connected with various materials and phases of manufacture. Notably, Ethyl Vinyl Acetate (EVA) which is
generally used as a midsole, appears to be a low water footprint substance, providing a better
option. Polyurethane (PU), leather, and natural rubber, on the other hand, have larger water footprints. This
calls for our innovation and material team to focus on having more recycled materials such as recycled
polyester, recycled PU, recycled rubber and recycled EVA. We mainly source leather from tanneries which
are LWG certified. In 2021 LWG released a new version of the LWG audit standard, bringing major changes to
how they assess leather manufacturers, this will help to further reduce the water footprint of leather
footwear products.
*
Water Footprint is expressed in terms of blue water consumption (BWC), which means freshwater consumption sourced
from surface and ground water
** Since there is only one accessory product for which the LCA was conducted so far, there was not enough data to compare
among accessories materials and reach a conclusion. Hence, the analysis on accessory materials was excluded from the
above description.
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MRSL WASTEWATER TESTING
Since 2015 we have increased the number of wastewater tests from 33 to 153 factories and in 2023 we
received 276 Wastewater test reports. 97% of all factories with wet-processing facilities (157 factories have
wet processes) have been covered by tests, and tests show that all these factories have at least a 90%
compliance rate with the ZDHC Wastewater Guidelines (Foundational level). ZDHC has created a three-level
approach to the limits for heavy metals and conventional parameters to promote continuous improvement.
The limits get more stringent as they move from Foundational, Progressive to Aspirational levels.
All 153 suppliers have a ZDHC ClearStream report. ClearStream report, an easy-to-read facility
performance report of ZDHC wastewater conformance, is automatically generated on the ZDHC gateway
platform. To obtain a ZDHC ClearStream report, the factories must conduct wastewater testing following the
ZDHC Wastewater Guidelines at one of ZDHC Accepted Laboratories, and all test results must be uploaded
to the ZDHC Gateway Platform by the laboratory.
Out of 153 factories, 117 factories are fully compliant with all ZDHC Wastewater Guidelines requirements.
Where a wastewater test failed, we helped factories to conduct a root cause analysis and create corrective
actions for wastewater and sludge, using the industry standard template. In 2023, we followed up with those
factories that failed to fully comply with the Wastewater Guidelines, and received ten corrective action plans.
We will continue to follow up through 2024 to obtain corrective action plans and we will evaluate further
measures that need to be taken. We will also follow up on their implementation through wastewater testing
in 2024.
In 2023 we partnered with an accredited third-party laboratory to organise training on chemical
management and wastewater conformance, as well as root cause analysis and corrective actions for non-
conformance. Case studies of conventional parameter failures have been presented in the training.
The overall compliance rate for each category is:
• Conventional wastewater parameters: 99%
• Heavy metals: 99%
• Restricted chemicals (MRSL): 98%
The overall compliance rate for conventional parameters increased by 1% in 2023 as compared to 2022, the
compliance rate for heavy metals was maintained at 99%, and the compliance rate for restricted chemicals
has fallen by 1%. The reason for the lower compliance rate for restricted chemicals this year is that 50% of
the factories do not comply with new substances listed in ZDHC Wastewater Guidelines Version 2.1, which is
a new version that came into effect in 2023.
The conventional wastewater parameters, apply only to suppliers which discharge their wastewater directly
into natural water bodies. Test results show over 90% compliance with the ZDHC Wastewater Guidelines
(Foundational level). For heavy metals and restricted substances, the test results also show over 90%
compliance for each parameter with the ZDHC Wastewater Guidelines. This means we have achieved our
wastewater quality target as a part of our 10FOR25 sustainability goals.
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↗ G.26 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – CONVENTIONAL
PARAMETERS
↗ G.27 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – HEAVY METALS
*
Antimony is subject to an exemption for mills that produce or dye polyester fabric because the antimony is used as a catalyst
for polyester production and it is natural to have antimony in the wastewater. This is acceptable as per ZDHC Guidelines.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
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↗ G.28 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – RESTRICTED
CHEMICALS
SUPPLIER TRAINING
To help our suppliers better understand the requirements set by PUMA and the industry, we trained
suppliers in standards, guidelines, tools as well as methodology for nonconformance investigation and
remediation. Case studies of restricted chemicals and heavy metal parameter failures were used in the
training.
↗ T.38 SUPPLIER TRAINING
Virtual Training
Training
scope
Topics
Number of
factories
Number of
participants
% factories
trained*
ZDHC Wastewater and Root Cause
Analysis & Corrective Actions
Conducted 4 sessions in 3 different
languages
All Tier 1
and core
Tier 2 with
wet
processing
ZDHC WW guidelines V
2.0 and implementation
Root Cause Analysis &
Corrective Actions for
Non-conformance
Wastewater
95
182
61%
*
% of factories joined the training, based on the total number of factories in the scope for this training. 61% of factories
participated in the training as some of the factories are aware of these requirements and methodologies and hence did not
join the training.
In 2023, we partnered with an accredited third-party laboratory to organise a “Chemical Management on
Wastewater Conformance Updates Training and Root Cause Analysis/Corrective Actions” for suppliers not
conformant with the ZDHC Wastewater. Case studies of conventional parameter failures were used in the
training.
A total of four training sessions were conducted in three different languages. More than 180 participants from
95 factories joined. More than 90% of participants were satisfied with the training arrangement and content.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
PUMA Annual Report 2023
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The training helped the factories’ participants to understand the new ZDHC Wastewater Guidelines, along
with implications and impacts on their facility of the key updates. It also clarified how to conduct a
Wastewater Root Cause Analysis and take Corrective Actions in the event of a non-compliant test result.
After the training, the factories which were not compliant with the ZDHC Wastewater Guidelines, were
required to conduct a Wastewater Root Cause Analysis and provide Corrective Actions. We received ten
Corrective Action Plans from ten factories. We will follow up on their implementation through wastewater
testing in 2024.
In addition, we encouraged suppliers’ chemical management teams to attend in-depth training courses as
part of the ZDHC Academy, which is conducted by ZDHC-approved service providers.
WATER SAVING
In 2023, we expanded the participation of our core Tier 1 and Tier 2 suppliers in cleaner production
programmes to improve energy and water efficiency.
Below are the annual savings from completed and ongoing projects between 2019 and the end of 2023:
• Greenhouse gas reduction: 90,182 tCO2e per year
• Renewable energy: 247 MWp of RE capacity (including offsite wind) added in 2021, 2022 and 2023
• Water saving: 2,401,002 m
3 per year
• Energy saving: 177,168 MWh per year
Apart from our 10FOR25 targets, we have set a target to reduce water consumption by 15% per unit of
products manufactured in 2025 compared to the 2020 baseline.
For further data on water consumption, please refer to the Environmental Key Performance Data section of
this report.
↗ G.29 PUMA CDP WATER SCORE
PUMA’s CDP water score improved from B- in 2021 to B in 2022. Until the end of January, 2024 we retained
our B score. For more information, please visit the CDP website.
C
2020
B-
2021
B
2022
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↗ CASE STUDY
Water reduction at two suppliers
Tai Hing Zipper, introduced an innovative wastewater treatment and recycling plant for its dying
system in 2022 with an investment of $ 800,000. This advanced biological treatment along with a
water recycling plant, helps in conserving 90% of water for every kilogram of fabric. From its early
stage of implementation to the present, water usage and wastewater output have been significantly
optimised. Previously, consuming 100 m
3 of water per day in the dyeing workshop, the factory has
progressively reduced its water consumption to an average of 10 m
3 per day for the same production
volume. The factory has adopted an innovative technology called the A/O process for the treatment of
wastewater generated from its dyeing operation. This allows for the recycling of the treated
wastewater back into the dyeing process. The factory has also installed a chemical index monitor to
facilitate the monitoring of the treated wastewater quality.
SQUARE Fashions Limited (SFL), a vertically integrated readymade garments manufacturing
company has placed significant emphasis on sustainability and environmental responsibility. To
further enhance these goals, SFL implemented various measures in 2023 to reduce its impact on
water. These include the installation of a water reclamation plant, rainwater harvesting systems,
reuse of steam condensate water, process optimisation, reuse of machine cooling water and raising
awareness amongst employees. These initiatives resulted in a reduction of 36.3% as compared to
2022 in groundwater consumption. This accounts for an absolute annual saving of 1,128,755 m
3 and a
financial savings of 10 million BDT ($ 97,785) in 2023.
↗ T.39 E-KPIS – WATER
1-6
Water
2023
2022
2021
2020
2019
2018
Change
2020/2023
Total Water from own operations (m³)
142,565 147,227 116,829
96,569
89,767 95,291
47.6 %
Public network consumption (m³)
137,651 143,332 116,829
96,569
89,767 95,291
42.5 %
Rainwater consumption (m³)
4,914
3,895
Total Water from PUMA production (core Tier 1&2)
(k m³)
7,322
8,507
8,475
7,128
2,572
2,030
2.7 %
Total Water from PUMA production (Tier 1) (k m³)
2,157
2,551
2,706
2,332
2,572
2,030
-7.5 %
Total Water from PUMA production (Tier 2) (k m³)
5,164
5,956
5,769
4,796
7.7 %
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimations where no real data could be provided
3
Methodological changes over the last three years have influenced results
4
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
5
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
6
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
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Although we do not have any goal for absolute reduction in water consumption from our core suppliers, we
continue to track their water consumption. In 2023, the absolute water consumption has decreased by 7.5%
for Tier 1 suppliers, as compared to the baseline of 2020. This is achieved due to a decrease in production
volume for apparel by 15% and an improvement in water usage efficiency per pair of footwear by 21.5%
during the same period.
For Tier 2 suppliers, absolute water consumption has increased by 7.7% compared to the baseline of 2020,
despite a significant increase in production volume in all Tier 2 divisions (12% for textiles, 7.3% for leather,
and 171% for PU). It is worth noting that water usage efficiency at textile production, the highest contributor
to water usage, has improved by 4.9% (from 103 to 98.3 m
3/ton of fabric), due to the water-saving measures
taken by the suppliers including the installation of water recycling plants by some suppliers towards end of
2022. The increased usage of recycled materials such as recycled cotton and recycled polyester has also
contributed to less water consumption.
AIR EMISSION
AIR EMISSION AT OUR OWN OPERATIONS
In terms of air emissions, there are no significant air emissions to report from our own sites. We have
outsourced all manufacturing to external manufacturing partners and at our largest sites globally we do not
have any industrial processes which could create air emissions. The only exception is our own
manufacturing site in Argentina, which is covered by our supply chain efforts listed below.
For our largest site, our global headquarters, we use district heating and heat pumps for heating, resulting
in zero direct air emissions from the building. This fact was confirmed during our ISO 14001 certification
audit in 2022.
AIR EMISSION IN OUR SUPPLY CHAIN
Since the publication of the ZDHC Air Emission Guidelines was still not been finalised in 2023, we decided to
internally monitor our core supply chain’s performance regarding air emissions. We designed a set of
questionnaires to gather the relevant air emission compliance information for our 131 core factories (Tier 1
and Tier 2), towards local regulations (samples are selected by the factories and tested towards the
requirements provided by the local environmental authorities).
The result shows that 100% of the core factories sampled were compliant with the local regulation for air
emission in 2023.
ZDHC AIR EMISSION GUIDELINES PILOT
In 2023, ZDHC circulated a draft air emission guideline V1.0 to the Air Emissions Task Team for review. We
tested the draft guideline in our supply chain through a pilot study. The objective was to evaluate suppliers'
readiness to comply with ZDHC draft guidelines and to provide feedback for review by the Task Team.
We partnered with a third-party laboratory, Eurofins MTS, to collect chemical samples and conduct tests
from six factories in Vietnam and two factories in China, out of which four are footwear factories and four
are apparel factories. The tests include the measurement of total VOCs (TVOCs) and calculate the Potential
to Emit (PTE), using the methodology referenced in the draft guidelines. We will share this data with ZDHC
to help establish the Foundational limit value for TVOCs in the guidelines. We also tested Hazardous Air
Pollutants/Toxic Air Pollutants (HAP/TAP). Out of 833 collected chemical samples, we detected HAP/TAP in
132 samples accounting for around 15.8% of total samples. Further breakdown indicates 13.2% of samples
are from footwear factories and 2.6% are from apparel factories. However, these factories have a high MRSL
conformance rate which is verified by a third party and they provide appropriate personal protective
equipment to their workers. ZHDC has not yet specified any limits for these air pollutants in the draft
guidelines.
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We also collected air emission samples from three factories (one apparel Tier 2, one footwear Tier 1, one
footwear Tier 2) to test the air pollutants. Tests included air pollutants from point sources i.e. combustion of
fuels and fugitive emissions from the production processes as per the draft guideline. The draft guidelines
do not yet specify any limits for World Health Organization (WHO) pollutants like Particulate Matter (PM),
Nitrous Oxides (NOx) Sulphur Oxides (SOx), and Ozone and globally regulated air pollutants like Carbon
Monoxide (CO) and Volatile Organic Compounds (VOCs); they will be incorporated into future updates to the
guidelines. In the absence of ZDHC limits, these results were compared with local regulation limits
wherever available, and the test results show 100% compliance.
We will communicate the test results with the factories and work to identify the root causes of test results
with high values. We will also discuss our results with ZDHC to find solutions on how to address high values,
particularly for TVOCs in footwear factories.
Note: Since we are following Greenhouse Gas protocol for Greenhouse gas estimation, the calculation of greenhouse gas was
excluded from the scope of this pilot study.
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PLASTICS AND THE OCEANS
Target description:
• Support initiative and scientific research on microfibres, work with core suppliers to reduce microfibre
release
• Research biodegradable polyester for use in PUMA products
• Eliminate plastic bags from PUMA stores and review the impact of hangers and fixtures
Relates to United Nations Sustainable Development Goals 3, 14 and 15
KPIs:
• Tons of plastic bags used in PUMA stores
• Percentage of PUMA offices that have eliminated single-use plastic
• Percentage of plastic packaging recycled
Plastic pollution in our oceans is one of the most urgent challenges to sustainability of our time. As a
company that uses polymers for most of its products, we have a special responsibility to work on this issue.
Avoiding plastic pollution is one of the three pillars of the Fashion Pact, of which PUMA is a founding
member. Also, several countries and regions have formed initiatives to ban certain types of single-use
plastics or plastic bags.
Therefore, we have added Plastics and the Oceans to our 10FOR25 Sustainability Strategy as well as our
sustainability bonus targets.
↗ T.40 ELIMINATION OF SINGLE USE PLASTICS
Sub-targets
2021
2022
2023
Target 2025
Plastic consumer shopping bags (stores, tons)
189
99
0
0
Plastic consumer shopping bags recycled content (%)
80%
80%
NA
Zero plastic bags
Plastic hangers used in stores (stores, tons)
134
160
176 Switch to recycled content or wood
Plastic hangers with 100% recycled content (%)
97%
99.9%
99.9%
100%
Primary and transit* plastic packaging (tons)**
558
2,297
3,057
Switch to recycled content or
paper
Primary and transit* plastic packaging with recycled
content (%) **
100%
99.6%
99.5%
100%
Offices that have eliminated single-use plastic cups
and cutlery (%)
88%
91%
92%
100%
*
Transit packaging from factory to warehouse
** 2023 full year data is proliferated based on actual Q1-Q3 data and 2022 record.
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Plastic shopping bags and single-use plastics aggravate the problem of plastic pollution significantly. By
eliminating them from our stores and office environment, we have set a positive example for our consumers
and colleagues and at the same time reduced our use of plastics by several hundred tons per year.
In recent years we switched our shopping bags to FSC-certified paper bags.
Our stores ordered 430 tons of consumer-facing polyethylene bags in 2019 and 400 tons in 2020. In 2021 our
stores ordered 189 tons. Finally, in 2022 our stores ordered 99 tons of consumer-facing plastic bags. As of
January 1st, 2023, we have replaced all polyethylene bags for consumer use with paper bags or durable
multi-use bags for sale in our owned and operated PUMA stores.
At the same time, we switched other plastic items in our retail stores, such as hangers and shoe fixtures, to
recycled polymers or FSC-certified wood. We also started working on more environmentally friendly
solutions for our B2B product packaging for apparel and accessories, which is also based on polyethylene
bags. As a result of these efforts, we switched our transit packaging B2B plastic bags to 100% recycled
content and also optimised the thickness to save on weight. Our labeling and packaging team is investing
time and resources in exploring environmentally optimised packaging solutions. For example, we piloted
transit bags made from paper in the USA. In 2023 we rolled out transit bags made from FSC-certified paper
for selected products.
According to our zero plastic target for primary product packaging, we also switched most B2C plastic
primary packaging to paper. For the few remaining plastic items like hangtag strings, we worked on non-
plastic or recycled plastic alternatives. At our offices, we have challenged our catering partners and
employees to avoid single-use plastics such as coffee cups, lids, stirring sticks, cutlery or straws. In 2021
88% of our offices globally had already eliminated single-use plastic cups and cutlery. This figure increased
slightly to 91% in 2022 and 92% in 2023.
FSC certified packaging for apparel products
On a product level we finished the pilot experiment of a compostable version of our most iconic sneaker, the
PUMA SUEDE. The pilot included the use of a fully biodegradable outsole made from thermoplastic
polyurethane (TPU). For more information on RE:SUEDE, please refer to the Circularity section of this
report.
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MICROFIBRES
All types of fibres have a propensity to shed to some extent, and understanding the full impacts of their
physical and toxicological presence is a growing area of research therefore we must not limit our focus to
synthetic materials.
Led by science, The Microfibre Consortium (TMC) seeks to understand both the drivers of fibre
fragmentation and, through external sources of research, the impacts on human health and ecosystems,
such that we can collectively take the right actions to mitigate negative impacts. PUMA joined The Microfibre
Consortium (TMC) as one of the signatory members to understand and address the environmental concerns
surrounding fibre fragments (microfibre) as generated from natural and synthetic clothing during
manufacture and the consumer use phase in the industry.
In 2023, we continued with microfibre shedding tests to measure microfibre release from our polyester
products during washing. We conducted 12 tests on selected 100% polyester fabrics following the TMC test
method to quantify fibre loss from fabrics that reflect that found in domestic laundering, during the initial
washing cycle. Fibre release results are expressed as a percentage of mass. The tests results indicate that
microfibre loss from PUMA's fabrics is lower than the average microfibre loss available on the Microfibre
Data Portal. Specifically, PUMA's average 0.0579%, compared to the TMC database average of 0.0587%. For
related definitions, please visit Static.
We have received feedback from TMC regarding the shedding data, and we understand that analysing it is
complex and ongoing. So far, there is not a clear trend showing which yarn or structure type sheds more
among the signatories. TMC has requested more data entries, and we will continue to participate in and
support this study as an industry.
In October 2023, PUMA joined a field trip to King's College London with 40 other delegates. TMC teamed up
with specialist test instrument manufacturer James Heal to hold the first public demonstration of the TMC
Test Method for fibre fragmentation from fabric.
PUMA remains committed to the TMC 2030 roadmap released in September 2021. PUMA has pledged to
support this roadmap and its objectives, including increasing the understanding of fibre fragmentation
through research, implementing mitigation strategies once they become available in the industry, and
contributing to progress through active participation in task teams with a goal of global implementation.
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CIRCULARITY
TARGET DESCRIPTION:
• Set up or join product take-back schemes in major markets
• Reduce production waste to landfills by at least 50% (shared target)
• Develop recycled materials as alternatives to leather, rubber, cotton and polyurethane (shared targets)
Relates to United Nations Sustainable Development Goals 9, 12, 14 and 15
KPIs:
• Percentage of major markets with take-back scheme
• Amount of waste sent to landfills
• Percentage of recycled polyester, cotton, leather, rubber and polyurethane
We are aware that the linear business model currently applied in our industry is far from the ideal concept
of a circular economy. The growing amount of textile waste sent to landfills is an emerging risk. Rethinking
the way we produce and moving towards a more circular business model is one of the priorities of our
Sustainability Strategy over the coming years.
We begin our journey with product design. Building on our Circular Design training with Circular Economy,
we rolled out an e-learning tool on circularity for all PUMA colleagues globally. Based on the PUMA identity
and our material toolboxes we identified circular design approaches around the longevity and cyclability of
our products. The e-learning covers our Circularity Policy, as well as our circular design guidelines.
During 2023, our largest business units held circularity workshops in which the options for transitioning
iconic PUMA products into more circular products were discussed.
CIRCULARITY INNOVATION
In 2021 we launched PUMA Circular Lab, our platform for speaking and learning about circularity together
with our customers. The first project was the RE:SUEDE, an experiment for a biodegradable shoe, made
with chrome-free Zeology Leather, hemp, cotton and a biodegradable TPE sole. It launched in 2022 with a
first batch of 500 pairs. The shoes were worn for six months by participants and then sent back to PUMA. In
December 2022 over 400 pairs of RE:SUEDEs were sent to an industrial composting facility in the
Netherlands, where they were prepared for the composting trial that was completed in 2023. The
composting results were made public so that anyone interested in compostable footwear can use our
lessons learned.
In apparel, we expanded our textile-to-textile recycling programme, which we renamed from RE:JERSEY to
RE:FIBRE. The initiative enables the recycling of fabric waste, as well as worn or unsellable polyester items
(for example unsellable polyester items due to expired licensing contracts) through an innovative chemical
recycling process into new textile items. We continue to partner with several teams for this project:
Manchester United, AC Milan, Olympique de Marseille and Borussia Dortmund as well as the Swiss Football
Federation. We collect used polyester products at the clubs’ fan shops and our own PUMA store in
Herzogenaurach. These products are sorted, and – where possible – enter the recycling stream to make
new polyester products.
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RE:FIBRE activations with BVB, Manchester City and AC Milan
During the Women’s Football World Cup in Australia, the Switzerland team played in jerseys made from
fibre-to-fibre recycled polyester. For 2024 we plan a further and significant extension of the RE:FIBRE
programme to cover the jerseys of all major football clubs and federations, scaling up the programme to
over 1 million produced items.
Swiss national women’s football RE:FIBRE jerseys
In addition to our existing RE:FIBRE initiative on recycled polyester, we started looking into innovative
processes of cotton recycling, such as using 100% (pre-consumer) recycled cotton in selected products and
the opportunity to recycle cotton waste into viscose-like materials.
RECYCLED MATERIALS USAGE
We encourage all our suppliers to reuse and recycle the fabric waste they are creating for PUMA production,
either through applications outside of our industry or ideally, by recycling offcuts into new polyester or
cotton yarns.
We have set circularity targets, for example, scaling up the use of recycled polyester and using recycled
alternatives to leather, rubber and polyurethane (PU), the materials we use most frequently after cotton and
polyester. Our material toolboxes include recycled material options for all these materials. In 2023, we also
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started looking at the potential of using secondary raw materials from innovative footwear separation
technologies.
In 2023, we delivered a million pieces of our downtown collection, made with at least 20% recycled cotton.
The percentage of recycled polyester increased for all product divisions from 14% in 2020 to almost 62% in
2023. The percentage of recycled cotton for our apparel products increased from 0.6% in 2020 to 8.6% in
2023, and for footwear, it increased from 0.5% to 1.6%.
PRE AND POST-CONSUMER WASTE IN THE SUPPLY CHAIN
Around 77% of pre-consumer waste was either reused or recycled by our core Tier 1 suppliers and around
94% of waste was either reused or recycled by our core Tier 2 suppliers in 2023. Compared to 2022, we
observed an increase of 20% in reused/recycled waste for core Tier 1 and an increase of around 4% for core
Tier 2. This increase is mainly due to the adoption of better waste disposal practices by our suppliers to
divert waste from landfills. For textile and fabric waste, 7.2% of waste was sent to incineration by core Tier 1
factories while core Tier 2 factories sent only 1% of waste to incineration.
↗ T.41 PRE AND POST-CONSUMER WASTE
1
Volume of recycled leather, from production waste
1.5 tons
Volume of recycled cotton, from production waste
2,901 tons
Volume of recycled polyester, from post & pre-consumer waste
27,042 tons
Volume of recycled nylon, from post-consumer waste
168 tons
Core T1*
Core T2**
Quantity of pre-consumer waste generated annually
37,379 tons
208,489 tons
% of pre-consumer waste sent to reuse or recycling
76.9%
94.3%
% of textiles and fabric destroyed (sent to incineration)
7.2%
1.0%
*
Core Tier 1 Supplier factories Apparel, Footwear & Accessories (54 factories)
** Core Tier 2 Supplier factories Leather, PU and Textiles (40 factories)
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
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↗ T.42 FABRIC WASTE
1-4
Year
Total
Fabric
Waste in
Tons
Reuse &
Recycle
(Tons)
Reuse &
Recycle
(%)
Incineration
(Tons)
Incineration
(%)
Landfill
(Tons)
Landfill
(%)
Footwear core Tier 1
2023
5,681.2
2,503.1
44 %
2,486.7
44 %
691.4
12 %
2022
6,554.4
2,348.0
36 %
4,184.2
64 %
22.3
0 %
Apparel core Tier 1
2023
6,245.5
6,222.2
100 %
23.4
0 %
-
0 %
2022
8.3
8,145.0
98 %
179.0
2 %
-
0 %
Accessories core Tier 1
2023
231.6
231.5
100 %
0.1
0 %
-
0 %
2022
990.6
236.4
24 %
0.1
0 %
754.3
76 %
Textile core Tier 2
2023
1,933.9
1,838.7
95 %
95.3
5 %
-
0 %
2022
2,073.8
2,056.0
99 %
17.9
1 %
-
0 %
Synthetic Leather (PU) core
Tier 2*
2023
170.3
88.2
52 %
82.1
48 %
-
0 %
2022
182.8
181.1
99 %
1.7
1 %
-
0 %
Total
2023
14,262.5
10,883.7
76 %
2,687.5
19 %
691.4
5 %
2022
18,126.1
12,966.5
72 %
4,382.9
24 %
776.6
4 %
*
Fabric waste originated from PU coated material with fabric backing (PU on top + fabric at bottom)
1
Data includes extrapolations or estimations where no real data could be provided
2
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
3
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
4
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Except for Footwear production that still has fabric waste sent to landfills, 100% fabric waste from Apparel,
Accessory, Textile, and Synthetic production was diverted from landfills. Compared to 2022, we observed an
increase in reuse and recycle proportion and a decrease in incineration proportion while disposal in landfill
percentage remains stable. This change was due to the adoption of better waste disposal practices and
reflects a gradual shift towards a circular approach by our suppliers.
In 2023, 95% of fabric waste resulting from PUMA production was diverted from landfill. This is evident as
76% of total fabric waste was either reused or recycled and 19% was sent to incineration. Only 5% of total
fabric waste ended up in landfills.
TAKE-BACK SCHEMES
To demonstrate our responsibility as a producer and to secure options for more circular material flows in
the future, we have set a target to join or offer take-back schemes in all our major markets by 2025.
In 2023 we introduced a new take-back scheme in Switzerland, piloted take-back bins in selected stores in
Argentina and China and expanded our existing take-back scheme in the USA into the category of apparel.
These new expansions complement our existing take-back schemes in Australia, Hong Kong, the USA and
the clubs taking part in the RE:FIBRE project. Our colleagues at PUMA North America continued to work
with Soles for Souls and collected 4,348 kg of used shoes, an initiative where shoes can be donated for
reuse in support of a charitable cause. Our colleagues in Australia were able to collect 3,900 kg of used
products.
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Since September 2019 PUMA customers in Hong Kong have been able to put their used sportswear to good
use and support disadvantaged communities across the world, as we teamed up with the non-profit
organisation, Crossroads Foundation. Hong Kong customers can donate used garments of all brands at
PUMA recycling bins, which have been set up in four selected stores. During 2023, 1,442 kg of used products
were collected. At our German headquarters we collected 385 kg of products through our take-back
scheme, which means that in total we collected over 10 tons of products for recycling or donation with our
take-back schemes globally for the first time. For 2024, we plan to expand our coverage of take-back
schemes further, for example in India and Germany.
SWAP SHOPS
SWAP shops are a free and local exchange where people can pass on things they no longer want, in
exchange for something they need. It helps people refresh their wardrobe without having to shop for
something new. Products get a new chance to be worn again and it promotes sustainability in a fun way. In
2023 the fourth PUMA SWAP Shop was held in Hong Kong to promote a “recycle and reuse” culture. It was a
public event to swap clothes and accessories. More than 460 guests joined and more than 2,320 items were
given away (more than four items per guest). 67 boxes of garments (1,013 kg) were donated to two NGOs:
Crossroads and Redress. Another SWAP Shop took place for the second time at our Headquarters in
Germany for our own employees. Over 400 items were swapped and the remaining ones were donated to
our employees’ charity organisation, Charity Cat. PUMA North America organised its first SWAP shop and
had a very positive response from over 130 employees swapping more than 1,000 articles.
SWAP Shop in PUMA North America
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PRODUCT CARE GUIDELINES
In 2023 we initiated the publication of care and repair guidelines for consumers to help keep their products
in good condition for a longer time. We focus on the most common reasons why people end up throwing
away their sportswear and offer easy tips to treat these problems. We promote natural ways to treat stains
and odours as well as conscious washing and drying practices to reduce user-phase impact.
UNSELLABLE PRODUCTS
We are aware that due to contractual restrictions, a certain number of unsold products must be occasionally
discarded, for example when a license contract with a partner club expires. We have a process in place to
ensure that this happens to PUMA products only in exceptional circumstances. Our production forecasts are
as accurate as possible to actively prevent high product inventories and their intrinsic management costs.
Unsold seasonal products are placed through different channels until they are sold. Returned products that
have not been worn are placed on sale again. Returned products with small defects but in good condition
are donated and only returned products that are very worn or severely damaged need to be discarded. No
new product should be destroyed without the explicit demand of an expiring licensing partner nor a new
product shall be destroyed as a solution for inventory management. We have created a reporting structure
to identify with accuracy the quantity and reasons for such cases. In 2023, the amount of disposed articles
was equivalent to 0.25% of our total material consumption. These products were sent to a recycling facility
(where available). In countries where such recycling facilities do not exist, the products were shredded.
WASTE ROADMAP AND RISK ASSESSMENT
In 2021 we developed a waste reduction roadmap and conducted a risk assessment.
WASTE AT OUR OWN OPERATIONS
At our own operations, the most significant fractions of waste are paper and cardboard (notably from outer
carton boxes, shoe boxes and office paper usage), poly bags used for transport product packaging and
household waste such as organic waste from our canteens. Since we do not operate any industrial
manufacturing facilities (with one exception in Argentina), the amount of hazardous waste created in
PUMA’s own operations is very low at 36 tons. The 36 tons originate from our factory in Argentina (26 tons)
and the exchange of old lighting systems to LED at the PUMA headquarters (9 tons). All hazardous waste is
handled strictly in line with hazardous waste regulations.
During 2023, we reminded our PUMA subsidiaries to engage in waste separation and recycling.
Consequently, we could increase the rate of recycled waste from 44% in 2019 to 64% in 2023.
WASTE IN THE SUPPLY CHAIN
For our supply chain, the waste data published in our report includes material waste, along with factory and
office operational waste: cardboard, paper, plastic, light bulbs, etc. to ensure a comprehensive scope for the
waste generated on production sites. We see plastics, chemicals, oil lubricant waste and e-waste as high
risk. To prioritize our actions, we analysed waste data collected in 2020 and the Higg FEM waste
management score of our core factories.
Below are the key focus areas for the coming years. Some actions were taken in 2023 and are covered below.
• Raise awareness: As a part of Higg FEM training, we have provided training to 210 suppliers factories on
how to improve their score in waste management. As a result of these trainings, the average Higg FEM
score for the waste module increased from 45% in 2022 to 53% in 2023, which was higher than the
industry median of 40% in 2023. The target for reducing the amount of production waste going to landfills
was communicated to the suppliers during the supplier meetings. We also conducted one-to-one
meetings with our core suppliers to review their waste KPIs.
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• Knowledge of impact: Some of our apparel suppliers have initiated the recycling of pre-consumer
cutting waste back into the spinning process. In 2023, we completed a Life Cycle Assessment to compare
virgin cotton fabric with 75/25 blend of virgin and recycled cotton from cotton waste. The details of this
LCA study are provided in the Product section. In 2023, we mapped a waste governance for our top three
sourcing countries, summarised their waste policy landscape and identified key stakeholders.
• Internal action: In last three years i.e., starting in 2021 we focused on better data collection on waste
from supplier’s facilities, and we observed that factories have started reporting comprehensive data on
waste.
• Collaboration and partnership: In 2022, we participated in a project named Closed Loop 2 Balance
(CL2B) in Vietnam, for which the final report was published in 2023. The Global Fashion Agenda
and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) launched The Circular
Fashion Partnership: a cross-sectoral initiative to support the development of effective circular fashion
systems in textile, garment and footwear manufacturing regions, by capturing and recycling post-
industrial fashion waste. This project is currently active in Bangladesh and Cambodia and is to
be launched in Vietnam in 2024. We have had several internal discussions and communication with GFA
and GIZ about this project in Vietnam. We will scale up our textile recycling innovation, RE:FIBRE,
replacing recycled polyester with RE:FIBRE technology in all PUMA football Club and Federation replica
jerseys from 2024 onwards. We also showed that we can successfully turn an experimental version of
our classic SUEDE sneaker into compost under certain tailor-made industrial conditions, as we
published the results of our two year-long RE:SUEDE experiment.
WASTE GOVERNANCE
In 2023, we conducted a waste governance mapping process for our top three sourcing countries, Vietnam,
China and Bangladesh. We looked at the waste policy landscape and identified key stakeholders. Challenges
and opportunities in waste management were also identified for each region. We found that the waste
regulations are evolving with stringent requirements progressively. We also found that interesting projects
are being undertaken in these countries on waste tracking, waste recycling/circularity etc.
Vietnam - Waste regulation in Vietnam has been evolving since 2005, with stringent requirements being
added progressively. Vietnam committed to address marine plastic waste, with a goal of eliminating plastic
waste from both land and ocean-based sources by 2030. In addition, Vietnam has legal requirements for
waste management, which includes the management of domestic solid waste, hazardous waste, and
normal industrial solid waste. Specifically, enterprises are obliged to adopt resource- and energy-efficient
solutions, use environmentally-friendly raw materials, fuels, and materials, apply cleaner production
technologies and programmes, and implement measures to minimize waste generation (Environmental
Protection Law, Chapter VI, Section 2, Article 72).
Limited waste segregation at source, inadequate infrastructure for recycling, a lack of adequate data,
access to financing, a lack of public awareness, and a lack of market for recyclables were identified as key
challenges for waste management in Vietnam.
The Global Fashion Agenda and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) have
launched The Circular Fashion Partnership: a cross-sectoral initiative to support the development of
effective circular fashion systems in textile, garment and footwear manufacturing regions, by capturing and
recycling post-industrial fashion waste. This project will be launched in Vietnam in 2024. Through this
project, we see opportunities to address the current challenges in collaboration with other brands,
manufacturers, collectors, sorters and textile recyclers to segregate, digitally trace and recycle textile waste
into the highest possible value output, ultimately being new products.
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China introduced a regulation to promote the circular economy back in 2004. The country has a specific
regulation to ban the import of waste, which involves penalties for violations such as the illegal dumping of
waste. China also has a policy on textile waste recycling, which aims to achieve a 25% recycling rate for
textiles waste by 2025 and 30% by 2030. It has also set specific targets to produce recycled fibres derived
from 2 million tons of waste textiles by 2025 and 3 million tons by 2030. China provides fiscal incentives for
suppliers under the Environmental Protection Tax Law in which tax on hazardous waste is determined
based on the generation quantity and hence provides an opportunity for suppliers to save costs by adopting
the 3R Principles (Reduce, Reuse Recycle). We see opportunities to engage with key local stakeholders to
improve factories waste management.
Bangladesh introduced specific regulation on the circular economy in 2022. The country has a goal to
achieve recycling of plastic waste by 80% by 2030, cut single-use of plastic by 90% by 2026, reduce
generation of plastic waste by 30% by 2030 and reduce virgin material consumption by 50% by 2030.
PUMA suppliers' have developed cotton pre-consumer textile waste recycling. We increased the use of
recycled cotton from 3.6% of total cotton volume in 2022 to 8.6% in 2023.
The Circular Fashion Partnership has been active in Bangladesh since 2021. Key partners in this project are
actively engaging with the Bangladeshi government to formalize the informal waste management sector.
This includes introducing incentives and tax deductions to incentivize manufacturers to embrace recycling
practices and establishing a comprehensive national policy for the sustainable management of post-
production fashion waste. Through this policy advocacy work, we see opportunities to further increase the
use of recycled cotton in future.
↗ CASE STUDY
Zero waste to landfill
Adhering to the three principles of "Reduction, Recycling, Detoxification", TST Group, is steadily
moving towards the target of "Zero Landfill". TST has two facilities supplying to PUMA, one in China
and the other one in Cambodia. TST has implemented processes for waste reduction such as energy
recovery from sludge through Chip Mong INSEE Cement Corporation in Cambodia, using coal ash
from boiler upcycling to produce bricks in Cambodia, reuse of fabric waste as mop and sending
chemical drums back to chemical suppliers for refilling in both the China and Cambodia facilities.
Through these initiatives along with strict classification and storage of waste, as well as cooperation
with qualified third-party waste treatment companies, TST Group has achieved a 99% waste diversion
rate of a total amount of 7,398 tons production waste generated annually from landfill.
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↗ T.43 E-KPIS – WASTE
1-6
Waste (t)
2023
2022
2021
2020
2019
2018
2017
Change
2022/2023
Change
2020/2023
Total waste from own operations
5,595
4,991
5,215
3,949*
3,644*
4,877
5,293
12%
42%
Recycled waste
3,598
3,007
2,220
1,436*
1,603*
2,282
3,419
20%
151%
Share of recycled waste
64%
60%
43%
36%
44%
47%
65%
78%
Total waste from PUMA
production (core Tier 1 and 2)
38,594
53,667
42,495
29,466
24,205
16,682 31,824
-28%
31%
Share of production waste to
landfill (core Tier 1 and 2)
4.6%
9.7%
10.0%
13.5%
-66%
Total waste from PUMA
production (Tier 1)
21,861
34,642
33,806
23,498
24,205
16,682 14,686
-37%
-7%
Share of production waste to
landfills (Tier 1)
4.6%
12.9%
10.3%
9.5%
-51%
Total waste from PUMA
production (core Tier 2)
16,733
19,025
8,689
5,968
17,138
-12%
180%
Share of production waste to
landfills (core Tier 2)
4.7%
4.0%
9.1%
17.6%
-73%
*
Waste data for PUMA’s own entities in 2019 and 2020 recalculated due to underreporting in these years
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimations where no real data could be provided
3
Methodological changes over the last three years have influenced results
4
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
5
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
6
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Similar to water, even though we do not have any goal for absolute reduction in waste generation for our
core suppliers, we continue to track them. It is also observed that only 0.5% of waste (material waste but
also other factory wastes like boiler ash, sludge from wastewater treatment plants etc.) end up in landfills
for apparel suppliers and 6.8% for footwear suppliers.
We can see that there has been a 7% decrease in production waste for Tier 1 suppliers and 180% increase
for Tier 2 suppliers from 2020. The high percentage increase in Tier 2 suppliers is mainly due to the
improvement in waste data captured by the suppliers. Certain wastes such as residual ash from coal and
biomass boilers that were not captured by the Tier 2 suppliers before are now being included. At the same
time, the production volume has increased by 12% for textiles and 171% for synthetic leather. 76.3% of the
production waste are reused or recycled, 18.8% are incinerated and 4.8% are sent to landfill.
Regarding production waste sent to landfill, both core Tier 1 and Tier 2 suppliers have succeeded in reducing
their landfill percentage compared to 2020 baseline. In 2023, Tier 1 and Tier 2 suppliers have achieved a
reduction of 51% and 73% reduction respectively from the baseline and thus exceeded the PUMA goal of 50%
reduction by 2025. This was achieved due to better waste management practices adopted by the suppliers
and more accurate tracking and reporting of waste data.
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PRODUCTS
TARGET DESCRIPTION:
• 90% of PUMA Apparel and Accessories products contain >50% recycled or certified material
• 90% of our Footwear contains at least one component made of recycled or certified material
• Increase use of recycled polyester (Apparel and Accessories) to 75% by 2025
Relates to United Nations Sustainable Development Goal 12
KPIs:
• Percentage of Apparel and Accessories with 50% recycled or certified material
• Percentage of Footwear with at least one recycled or certified component
• Percentage of recycled polyester used in Apparel and Accessories
The PUMA Environmental Profit and Loss Account (EP&L) attributes more than 50% of our environmental
impact to material and raw material production. Against this background, we have decided to prioritize the
large-scale use of certified or recycled raw materials. In our 10FOR25 strategy, we have set 100% targets for
the raw materials of cotton, polyester, leather, and cardboard.
In addition to measuring the use of recycled or certified materials, we also determine the percentage of all
products made of such materials. As defined in our PUMA Sustainability Index, or S-Index, S-Index-
approved apparel or accessories products contain at least 50% certified or recycled materials by weight. For
footwear, we currently measure S-Index conformance by including one or more main components* made
from certified or recycled materials.
In 2021 we rolled out an e-learning toolkit on our PUMA S-Index for the PUMA family. The training allows
designers, developers, and product managers to understand which materials qualify as more sustainable,
how the PUMA S-Index is calculated, and which certifications need to be in place to externally communicate
on a product level.
In 2023, 85% of our product by volume met our S-Index definition. We are on track to meet our goals of 90%
for 2025.
*
Main component in the upper includes the visible upper and its components, linings, sockliner, and strobel as the only non-
visible component. They can be made of textile, leather, synthetic (PU) or TPU. It excludes trims such as eyelets, laces,
counters, decorations, etc. Main components in the bottom includes outsoles, midsoles, and insoles. They can be made of
Rubber, PU, TPU, EVA. It excludes trims and decorations.
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↗ T.44 CERTIFIED OR RECYCLED PRODUCTS
Product Category
Styles 2023
Volume 2023
Target 2025
Apparel with at least 50 % certified or recycled material
77 %
87 %
90 %
Accessories with at least 50 % certified or recycled material
20 %
40 %*
90 %
Footwear with at least one certified or recycled component
89 %
93 %
90 %
Total
75 %
85 %
90 %
*
Excluding products from stichd; for further details on the reporting scope please refer to the Scope of the Report section.
In 2023 we continued to develop and design our collections and individual styles using recycled materials.
Highlights include the use of our RE:FIBRE technology in our Teamsport jerseys. The jerseys made with
RE:FIBRE are made from at least 95% of recycled textile waste and other used materials made of polyester.
We also continued our Downtown collection from Sportstyle and accessories. The different styles in
Downtown are made using 20-30% recycled cotton, while the accessories are made from at least 20%
recycled content. Another highlight includes the scaling of our Caven shoe, which is made with at least 20%
recycled materials in the upper and at least 10% recycled materials in the bottom. Our Downtown collection
exceeded 1 million pieces in 2023 and we produced 3 million Caven shoes for the Spring Summer and
Autumn Winter collections in 2023 combined.
PUMA Caven contains at least 20% recycled content in the upper and 10% recycled content in bottom of the shoe.
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PRODUCT LIFE CYCLE ASSESSMENT
We continued the Life Cycle Assessment (LCA) studies of our product portfolios in 2023. The outcomes of an
LCA act as a quantifiable measure of our efforts towards embedding sustainability in our products by
exploring ways to make our product value chains safer, cleaner and more sustainable. It also encourages
innovation in our products and processes so that we can meet increasing social and business expectations
regarding sustainability and transparency. Sphera, a leading consulting organisation in the field of LCA,
conducted LCA studies to consider all of the elements of the life cycle, from the overall manufacturing
including supply of material and energy carriers through to the end of life, when analysing the
environmental performance of the products. The LCAs were performed as per ISO 14040 and ISO 14044
requirements. A third-party critical review panel was commissioned to peer review the work and ensure
compliance with the mentioned standards.
LCA OF TWO PRODUCTS
We completed a screening LCA study for two of our top products, the PUMA POPCAT 20 sandals, and the
PUMA Smash v2L shoes, to map the environmental footprint of these products across their entire value
chains (cradle to grave), excluding the consumer use phase. This helped us to understand the hotspots in
the value chain (the maximum impacts in terms of climate, energy and water), and to identify sustainable
options in various phases to improve the product’s environmental footprint.
The results of the analysis can be summarised as follows:
↗ G.30 GLOBAL WARMING POTENTIAL
49.07%
69.61%
40.37%
21.38%
0.29%
0.23%
9.94%
8.78%
Sandals POPCAT20
Shoes SMASH V2L
Manufacturing
Raw Material
End of Life
Use Phase
Shoe PUMA SMASH V2 L, gross
weight 0.955 kg/pair
Sandal PUMA POPCAT 20, gross
weight 0.381 kg/pair
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For the POPCAT20 sandals, the global warming potential (GWP) in kg CO2e was mainly influenced by raw
materials which include polyester fabric, chemicals etc. (49.07%), manufacturing energy (40.37%) and End of
Life (9.94%). Ethylene Vinyl Acetate (EVA) and PU Synthetic are the major contributing materials.
For the SMASHv2L shoes, the global warming potential (GWP in kg CO2e) was mainly influenced by materials
which include body material, parts and components (69.61%), manufacturing energy (21.38%), and end-of-
life (8.78%). Polyester fabric and rubber are the major contributing materials.
Footwear usually does not require extensive cleaning during its lifetime, and hence the impact of the
consumer use phase is negligible. Therefore, the GHG emissions of the use phase from both of the footwear
is not considered. However, the end-of-life phase includes reuse, recycling, incineration, and landfilling
based on European scenarios, which contributes to GWP impacts of 9.94% for the POPCAT20 sandals and
8.78% for the SMASHv2L shoes.
↗ G.31 PRODUCT ENVIRONMENTAL FOOTPRINT
1-2
1
Primary energy is the energy that is harvested directly from natural resources: coal, oil, natural gas and uranium.
2
Blue water is water that has been sourced from surface or groundwater resources and is either evaporated or incorporated
into a product.
For the POPCAT20 sandals, the total global warming potential is 1.61 kg CO2e. The total primary energy
demand is 32.36 MJ with major contributions from ethylene vinyl acetate (EVA) (60.60%) and PU Synthetic
(11.48%). The total blue water consumption is 31.02 kg with major contributions from the raw material PU
Synthetic blend (51.85%) which contains 52% recycled polyester and 48% polyurethane. The remaining
contribution comes from other materials, chemicals, electricity and fuel consumption.
For the SMASHv2L shoes, the total global warming potential is 4.61 kg CO2e. The total primary energy
demand is 90.38 MJ with major contributions from the polyester fabric (30.04%) and rubber (22.04%). The
total blue water consumption is 41.33 kg with major contributions from PU-coated leather (33.41%).
POPCAT 20 sandals have a significantly smaller (65%) carbon footprint than SMASH v2L shoes. One reason
for this is the lower net weight of POPCAT 20, which is 60% lower. Looking at the carbon footprint of
materials, in the case of POPCAT 20, 64.5% of climate impact comes from the Ethylene Vinyl Acetate (EVA)
while for Smash V2L, the majority of the impact comes from polyester and rubber, which accounts for 65.4%
of the carbon footprint of the raw material of the product. This indicates that low-carbon material such as
EVA has also contributed to the lower carbon footprint of POPCAT 20. Looking at energy consumption during
1.61
4.61
Sandals
POPCAT20
Shoes
SMASHv2L
Climate Change
[kg CO2e/product]
32.36
90.38
Sandals
POPCAT20
Shoes
SMASHv2L
31.02
41.33
Sandals
POPCAT20
Shoes
SMASHv2L
Primary Energy Demand (Net)
[MJ/product]
Blue Water Consumption
[kg/product]
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production, POPCAT 20 consumed 52% less electricity than SMASH v2L. This can be attributed to the lower
net weight and the simplicity of the POPCAT 20 product design.
Though the SMASH v2L has a larger carbon footprint than the POPCAT 20, it is much smaller (4.61 kg CO2e)
when compared to previously conducted LCAs of footwear products in 2021 i.e. the Future Rider Play on
(9.49 kg CO2e) and Velocity Nitro (7.6 kg CO2e). Both the Future Rider Play on and Velocity Nitro have a lower
net 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
SMASH v2L is made of recycled materials such as recycled polyester, recycled PU, and recycled rubber
along with recycled packaging materials and the quantity of leather used is much lower, which explains the
lower carbon footprint when compared to the Rider Play on and Velocity Nitro.
The key takeaways from the LCA study are, to make future footwear products lighter, increase the usage of
low-impact materials such as recycled polyester or recycled PU and reduce the use of high-impact
materials such as virgin PU and virgin polyester. The supply chain for footwear products is complex and
involves multiple stages such as raw material extraction, processing, finishing, assembly, distribution and
end of life. The LCA study is used to understand the value chain environmental impacts of our products.
PUMA intends to use the outcomes of the study to raise internal awareness and improve the product’s
environmental footprint by increasing the use of more sustainable materials (recycled or biosynthetic),
improving resource efficiency, optimizing energy use, promoting renewable energy in the value chain, and
enhancing the circularity of our products.
COMPARATIVE LCA VIRGIN POLYESTER VS. PET RECYCLED POLYESTER VS. RE:FIBRE POLYESTER
PRODUCTS
In 2023, PUMA engaged Sphera, Inc. to conduct a comparative Life Cycle Assessment (LCA) of three types of
sports jerseys made from virgin polyester, PET recycled polyester and RE:FIBRE, in our Turkey supply chain.
The RE:FIBRE process uses mainly polyester material from factory offcuts, faulty goods and
used clothes. PET recycled polyester comes from PET plastic bottles.
The LCAs were performed using the “cradle to grave” approach. The objective was to quantify the
environmental impacts associated with the production of these three types of jerseys using the LCA
approach. The products studied were:
The scope of this study includes raw material sourcing and extraction, transportation of raw materials to
the manufacturing location, manufacturing of the jersey products, product distribution, product use phase
and end of life (EoL) of product and packaging.
PET recycled polyester jersey
Net weight 0.964 kg
(88% Mechanically Recycled
Polyester and 12% Virgin Polyester)
RE:FIBRE polyester jersey
Net weight 0.904 kg
(57% Chemically Recycled
Polyester, 34% Mechanically
Recycled Polyester, and 9%
Virgin Polyester)
Virgin polyester jersey
Net weight 1.316 kg
(100% Virgin Polyester)
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The LCA study indicates that per kg, the PET recycled polyester jersey has the smallest carbon footprint
(13.19% lower as compared to virgin polyester jersey) among the three products compared in the study.
Whereas, per kg, the RE:FIBRE polyester jersey has a 7.31% lower Global Warming Potential (GWP) impact
when compared to the virgin polyester jersey. The RE:FIBRE polyester jersey has 57% chemically recycled
fibre which has a higher GWP impact as compared to mechanically recycled fibre but a lower one than virgin
recycled fibre.
The total primary energy demand also exhibits a similar trend, due to same factor as the carbon
footprint. The PET recycled polyester jersey and RE:FIBRE Polyester Jersey are 16.15% and 12.13% lower
respectively per kg than the virgin polyester jersey.
The LCA study also indicates that, the water consumption per kg of PET recycled polyester jersey and
RE:FIBRE polyester jersey is 1.10% and 2.82% higher than per kg value of the virgin polyester jersey.
Although textile-to-textile technology currently has a larger environmental footprint than mechanical
recycling, through the RE:FIBRE programme, PUMA is keen to address the challenge of textile waste via a
long-term solution for recycling. The technology also looks to diversify the fashion industry’s main source of
recycled polyester in garments to make it less reliant on clear plastic bottles. We also believe that this
technology has room to become more energy efficient in future.
Managing waste has become a necessity, which is why PUMA is ramping up its investment into resource-
efficient manufacturing processes in a move to reduce textile waste. Textile waste build-up in landfills is an
environmental risk. Rethinking the way we produce and moving towards a more circular business model is
one of the main priorities of our Sustainability Strategy.
To help make the technical process of RE:FIBRE more digestible for the everyday consumer who wants to
know more, PUMA has created a RE:FIBRE process explainer video, which can be accessed here.
The four-step process of RE:FIBRE:
• Collect and Sort: collecting and sorting textile waste and other previously wasteful materials.
• Shred and Mix: shredding and mixing the collected materials
• Dissolve, Filter and Polymerize: Dissolving the shredded polyester and removing dyes through a
chemical recycling process.
• Melt, Spin, Knit and Sew: The melting makes the newly produced polymers ready to be spun and sewn
into shape to create good as new RE:FIBRE fabric which can be recycled again and again.
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↗ G.32 ENVIRONMENTAL FOOTPRINT OF POLYESTER JERSEYS
1-2
1
Primary energy is the energy that is harvested directly from natural resources: coal, oil, natural gas and uranium.
2
Blue water is water that has been sourced from surface or groundwater resources and is either evaporated or incorporated
into a product.
COMPARATIVE LCA OF 3 TYPES OF COTTON FABRIC
PUMA engaged Sphera to conduct a comparative Life Cycle Assessment (LCA) of one kilogramm of 100%
virgin piece dyed cotton fabric, 75/25 virgin/undyed recycled piece dyed cotton fabric and 75/25
virgin/coloured recycled piece dyed cotton fabric.
Piece dyed fabric is fabric made of grey yarns which are dyed, and is different to yarn dyed fabric: a fabric
that is knitted using dyed yarn.
LCAs are performed using the “cradle to gate” approach. Since this is the “cradle to gate” approach,
consumer use phase and fabric end-of-life impacts for the cotton fibre products were not considered in this
LCA study.
The main objective of the study is to quantify the environmental impacts associated with the production of
these fabrics across various life cycle stages of the manufacturing process, including the supply of raw
materials and energy carriers. The primary data considered for the study was collected from three PUMA
suppliers stretched across two regions, Bangladesh (two factories) and Turkey (one factory). The data
collected includes data for all the production processes such as collection and pre-processing, yarn
spinning, knitting and inspection, pre-treatment, dyeing, compacting and drying.
The LCA study indicates that for one kg of 75/25 virgin/undyed recycled piece dyed cotton fabric, the carbon
footprint is 5.83% smaller compared to the 100% virgin piece dyed cotton fabric. This change was mainly
influenced by the inclusion of 25% undyed recycled cotton material. For 1 kg of 75/25 virgin/coloured
recycled piece dyed cotton fabric, the carbon footprint was smaller by 13% when compared to the 100%
virgin piece dyed cotton fabric. This change was mainly influenced by the inclusion of 25% coloured recycled
piece dyed cotton fabric. When comparing these three fabrics, the environmental impacts of 75/25
virgin/coloured recycled piece dyed cotton fabric were found to be the lowest. This is due to the usage of
25% recycled yarn which is recovered from a coloured fabric and hence requires fewer chemicals and less
energy during the dyeing process.
22.46
19.49
20.81
Climate Change
[kg CO2e/kg of product]
606.31
508.39
532.79
964.28
974.88
991.49
Primary Energy Demand
[MJ/ kg of product]
Blue Water Consumption
[kg/kg of product]
GWP
PED
BWC
PET Recycled Jersey
Virgin Polyster Jersey
RE: FIBRE Polyester Jersey
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↗ G.33 ENVIRONMENTAL FOOTPRINT OF COTTON FABRICS
Additionally, it was found that the most significant carbon footprint impact is related to the conventional
dyeing of fabric followed by the impacts of cotton cultivation and yarn spinning. Primary energy demand is
largely driven by the cultivation of cotton, followed by conventional dyeing of fabric. Water consumption is
largely driven by cotton cultivation followed by conventional dyeing, compacting and drying processes.
In the study, we also evaluated the environmental impacts of different types of dyeing technologies such as
conventional and Pad-Steam dyeing processes for the three types of fabrics. The Pad-Steam process is a
textile finishing technique used to apply chemicals or dyes to fabric. It is a combination of two steps:
padding and steaming. This process is employed to achieve uniform coloration, improved fabric properties,
and enhanced performance characteristics. This study was conducted at a factory located in Turkey that
uses both technologies. Conventional dyeing for knitted products is typically a batch process in which the
fabric is loaded along with water, chemical and dyestuffs and processed for a fixed number of hours based
on the type of fabric. Whereas, Pad-Steam dyeing is a continuous dyeing process, in which the fabric is dyed
by immersing the fabric in the dye solution for a few seconds, immediately pressed through a roller and
then steamed. Pad-Steam dyeing is more resource-efficient as compared to conventional dyeing. This was
further corroborated by our LCA study. Pad-Steam dyeing was found to have a smaller environmental
footprint than conventional dyeing. It was observed that the Pad-Steam dyeing process has 81.9% less
energy and 80.5% less water consumption as compared to the conventional dyeing process.
It was found that Pad-Steam dyeing for 100% virgin piece dyed cotton fabric has a 34.8% smaller carbon
footprint as compared to conventional dyeing. The corresponding figure for 75/25 virgin/undyed recycled
piece dyed cotton fabric was 36.9% and 25.02% for 75/25 virgin/coloured recycled piece dyed cotton fabric.
Similar trends were also observed for primary energy demand and water consumption.
The LCA study clearly indicates that the inclusion of recycled cotton fabrics has a smaller environmental
footprint and hence is to be promoted for future product development. However, there are currently
technological limitations surrounding increasing recycled cotton to more than 25% in a cotton fabric mix.
This calls for a focus on future innovation in this area. Furthermore, our suppliers could adopt better dyeing
technologies such as the Pad-Steam dyeing process which has a smaller environmental footprint.
8.67
8.16
7.53
Climate Change
[kg CO2e/kg of Fabric]
190.81
170.42
160.20
1,216.26
942.48
912.84
Primary Energy Demand
[MJ/kg of Fabric]
Blue Water Consumption
[kg/kg of Fabric]
GWP
PED
BWC
75/25 Virgin / Undyed Recycled
Piece Dyed Cotton Fabric
Virgin Piece Dyed
Cotton Fabric
75/25 Virgin / Coloured Recycled
Piece Dyed Cotton Fabric
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MATERIAL ORIGIN
Mapping and assessing risk and impact practices in the lower tiers of the supply chain helps us to identify
opportunities for improvement.
COTTON
In 2023, we sourced approximately 34,000 tons of cotton. To reach our 100% targets for certified or recycled
cotton, we require our suppliers to only source cotton from farms that are licensed or certified as having
good farming and human rights standards, or recycled cotton. 96% of the cotton used in PUMA products
comes from the USA, Brazil, Australia, India, Bangladesh, Vietnam, Indonesia and Turkey.
LEATHER
In 2023, we sourced approximately 3,500 tons of bovine leather. We are working on improving the traceability
of the leather we use by recording the traceability score of our leather manufacturers certified by the
Leather Working Group. The leather used in PUMA footwear mainly comes from the USA (61%), Argentina
(27%), Australia (6%) and Brazil (5%). We also monitor our LWG (Leather Working Group) medal-rated
tanneries' traceability performance. Most suede tanneries work with agents and intermediaries besides
direct tanneries to guarantee a stable sourcing supply. Suede is a byproduct of the full-grain leather
business. This creates a challenge to full traceability. This explains why our suede leather LWG tanneries
have a worse traceability performance than full-grain LWG tanneries. We aim to increase all of our LWG
medal-rated tanneries’ traceability performance over time.
MATERIAL CONSUMPTION DATA
↗ G.34 CERTIFIED OR RECYCLED MATERIALS DEVELOPMENT
1-2
1
Cotton and polyester including apparel and accessories material (including trims)
2
Proliferation for 2023 based on actual data in January - September 2023 and previous data October - December 2022
As in previous years, a significant percentage of our materials can be attributed to cotton either from the
Better Cotton Initiative, recycled or organic cotton, to polyester that is either bluesign® or OEKO-TEX®-
certified, recycled or bio-based polyester, and to leather sourced from Leather Working Group (LWG)-
certified tanneries or recycled leather. In addition, we only use down feathers certified by the Responsible
Down Standard and 84% of our man-made cellulosic (MMCF) is made by green shirt-rated MMCF suppliers
with a proven track record on sustainability based on the Hot Button report from the NGO Canopy.
0
10
20
30
40
50
60
70
80
90
100
2015
2016
2017
2018
2019
2020
2021
2022
2023
Year
Cotton
Polyester
Cardboard
Leather
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Therefore, more than 87% of our apparel, 40% of our accessories and 93% of our footwear products are
already classified in line with the definition in our PUMA Sustainability Index.
Coverage and calculations are more complex for footwear because all of our shoes are made from several
components. The main materials we use are polyester, polyurethane, rubber, leather and nylon. In line with
our earlier targets, we have achieved 99.7% coverage of leather sourced from LWG-certified tanneries.
In 2023, 99.2% of the cotton used came from certified or recycled sources, as did 85% of our polyester.
We hardly used wool in 2023 (6,566 kg). Nevertheless, we see an increased number of factories certified in
line with the Responsible Wool Standard (RWS). We organised a RWS training for our in-scope suppliers in
June 2023, and the positive results were shown by the six RWS-certified factories in our supply chain. We
aim to reach 100% certified wool in 2025.
↗ T.45 DEVELOPMENT OF CERTIFIED OR RECYCLED MATERIAL USAGE*
Cotton
Apparel
Accessories
Footwear
Total
Better Cotton
90.6 %
23.2 %
8.0 %
90.3 %
Recycled
8.6 %
16.7 %
1.6 %
8.6 %
Organic
0.3 %
0.3 %
0.3 %
Conventional
0.6 %
59.7 %
90.5 %
0.9 %
Polyester
Apparel
Accessories
Footwear
Total
Recycled
68.4 %
29.3 %
56.5 %
61.8 %
Oekotex® / bluesign®
30.3 %
54.5 %
8.1 %
23.3 %
Sorona®
0.1 %
0.2 %
0.1 %
Conventional
1.2 %
16.2 %
35.2 %
14.8 %
Manmade cellulosics
Apparel
Accessories
Footwear
Total
Green Shirt-rated fiber producers**
82.4 %
72.7 %
Ecovero®
12.7 %
0.7 %
11.3 %
Conventional
4.9 %
100.0 %
99.3 %
16.0 %
Polyamide (nylon)
Apparel
Accessories
Footwear
Total
Recycled
26.4 %
60.2 %
2.0 %
19.3 %
Oekotex® / bluesign®
70.8 %
38.2 %
13.9 %
46.9 %
Conventional
2.8 %
1.6 %
84.2 %
33.8 %
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Leather
Apparel
Accessories
Footwear
Total
LWG medal-rated tannery
99.96 %
99.7 %
Recycled
0.04 %
0.04 %
Conventional
100.0 %
0.22 %
Rubber
Apparel
Accessories
Footwear
Total
Synthetic
34.7 %
52.6 %
93.9 %
93.0 %
Natural
65.3 %
32.5 %
1.2 %
1.9 %
Recycled
15.0 %
4.9 %
5.1 %
PU
Apparel
Accessories
Footwear
Total
Recycled
2.4 %
1.5 %
2.4 %
2.4 %
Oekotex® / bluesign®
93.4 %
0.8 %
Water-based
0.02 %
1.1 %
1.0 %
Bio-based
0.4 %
0.4 %
Conventional
4.3 %
98.48 %
96.1 %
95.4 %
Down
Apparel
Accessories
Footwear
Total
RDS certified
100 %
100 %
*
Figures include trims and exclude licensee production as well as production from stichd. For further details on the reporting
scope, please refer to the Scope of the Report section.
** Green Shirt-rated fiber producers, as set by the annual Canopy Hot Button report, encourage existing fiber suppliers to
commit to CanopyStyle and a Canopy Audit.
↗ T.46 CERTIFIED OR RECYCLED MATERIALS BY PRODUCT DIVISION*
2023
2025 target
Apparel
Certified or recycled cotton
99.4 %
100 %
Certified or recycled polyester
98.8 %
100 %
Certified or recycled MMCF
95.1 %
100 %
Certified or recycled PU
95.7 %
NA
Accessories
Certified or recycled cotton
40.3 %
100 %
Certified or recycled polyester
83.8 %
100 %
Certified or recycled MMCF
0.0 %
100 %
Certified or recycled leather
0.0 %
100 %
Certified or recycled PU
1.5 %
NA
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Footwear
Certified or recycled cotton
9.5 %
100 %
Certified or recycled polyester
64.8 %
100 %
Certified or recycled MMCF
0.7 %
100 %
Certified or recycled leather
100 %
100 %
Certified or recycled PU
3.9 %
NA
L&P paper/cardboard products**
Recycled and/or FSC-certified
99.4 %
100 %
*
Figures include trims and exclude licensee production as well as production from stichd. For further details on the reporting
scope, please refer to the Scope of the Report section.
** Including outer cardboard boxes, which were excluded in previous years.
In 2023, the total number of GRS/RCS certified factories has increased to 159 from 145 in 2022. This indicates
a higher uptake of recycled material due to the launch of more sustainable products in our product mix.
In 2023, we saw an increased number of factories certified by the Responsible Wool Standard.
↗ T.47 NUMBER OF FACTORIES WITH CERTIFICATION
1
Number of factories certified
GRS/RCS
GOTS
OCS
RDS
RWS
LWG
Apparel & Accessories Tier 1
and Tier 2
128
30
23
6
6
NA
Footwear Tier 1 and Tier 2
31
0
1
NA
1
NA
32 Gold
Leather Tanneries
4 Silver
1
GRS: Global Recycling Standard, RCS: Recycled Claim Standard, OCS: Organic Content Standard; GOTS: Global Organic
Content Standard; RDS: Responsible Down Standard, RWS: Responsible Wool Standard, LWG: Leather Working Group.
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BIODIVERSITY
TARGET DESCRIPTION:
• Support the industry in setting a science-based target for biodiversity
• 100% cotton, leather and down procured from certified sources (shared target)
• Zero use of exotic skins and hides
Relates to United Nations Sustainable Development Goals 14 and 15
The world’s biodiversity experts agreed to conserve 30% of the world’s land and oceans by 2030. Biodiversity
is also inextricably linked to climate change.
Consequently, we have dedicated one of our 10FOR25 sustainability target areas to biodiversity. Most of
PUMA’s biodiversity impact is based in the supply chain, particularly to the usage of agricultural raw
materials. However, we also include biodiversity checks in our annual environmental data collection for our
own offices, stores and warehouses around the globe.
BIODIVERSITY POLICY
As part of the Fashion Pact, we are committed to supporting the development of science-based targets
related to biodiversity.
In 2021 we published the PUMA biodiversity policy and animal welfare policy- signed off by our Board of
Management- to create a framework for our approach to biodiversity and animal welfare. These policies are
available for download on our website.
This includes our commitments:
• as a supporting partner of the CanopyStyle initiative, to only source our viscose from Green Shirt-rated
suppliers in order to protect endangered forests and species.
• to source the leather used in PUMA products solely from manufacturers who implement industry best
practice standards of environmental management and traceability, such as the leather working group.
• to source all our paper and paper-based packaging from recycled sources and/or Forest Stewardship
Council-certified sources. PUMA acted as a partner of Canopy’s Pack4Good initiative to collectively
reduce any risk of sourcing from ancient and endangered forests by 2022 and promoting next-generation
solutions.
At PUMA we care for the welfare of animals. We do not use animal products which originate from animals
that have been treated inhumanely. Therefore, we aim to implement high welfare and traceability standards
and have published an Animal Welfare Policy. PUMA consults animal protection organisations on a regular
basis to review our policies and actions. As a sign of our commitment to animal welfare, we joined the Fur
Free Retailer programme and phased out the use of kangaroo leather in 2023.
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BIODIVERSITY IN OUR OWN OPERATION
We checked via our annual environmental reporting campaign and confirmed that none of our PUMA sites
are located within a protected area. We have identified one site in South Africa, as being located next to a
protected area, which holds a rare species of the plant, Renosterveld Finbos. This site is an office location,
and is fenced off from the protected area, so any negative impact on these plants can be ruled out.
There are green roofs which offer additional habitats for insects as well as wildflower meadows and
beehives on our headquarters in Herzogenaurach, as well as on our (outsourced) German central logistics
centre.
BIODIVERSITY IN OUR SUPPLY CHAIN
Many species, including plants, animals, bacteria and fungi are being threatened with extinction due to
human activities such as deforestation, putting Earth’s biodiversity at risk. Apparel supply chains are
directly linked to soil degradation, conversion of natural ecosystems and waterway pollution. Two-thirds of
apparel shoppers say that limiting the impact on climate change is now more important to them now than
before COVID-19 (McKinsey: Biodiversity – The next frontier in sustainable fashion).
PUMA is a signatory to the Fashion Pact, a global initiative of companies in the fashion and textile industry
(ready-to-wear, sport, lifestyle and luxury), all committed to a common core of key environmental goals in
three areas mitigating global warming, restoring biodiversity and protecting the oceans.
Biodiversity loss and climate change are interdependent and mutually reinforcing. For example, protecting
forests could help reduce greenhouse gas emissions. In turn, the rise of global temperatures increases the
risk of species becoming extinct. In 2019 PUMA published its science-based emissions target (SBT) with the
SBT Coalition and joined the Fashion Pact. In 2023 an updated and 1.5 degree aligned science-based
emissions target was approved for Scope 1 and 2 by SBT Coalition.
Please see the Climate section of this report to find out about our climate action and progress.
↗ T.48 SUSTAINABLY SOURCED NATURAL MATERIALS
Sub-targets
2023*
2022*
2021
Target 2025
Science Based Target (SBT)
Fund Biodiversity
Landscape Report
Fund Biodiversity
Landscape Report
Joined Fashion
Pact activities on
biodiversity
SBT set
Cotton (BCI** and/or recycled)
99.2%
99.9%
99%
100%
Leather (LWG-certified tanneries)
99.7%
100%
99.9%
100%
Down (RDS-certified)
100%
100%
100%
100%
Sustainably sourced viscose / MMCF
84%
97%
38%
100%
Cardboard and paper (FSC and/or recycled)
99.4%***
99.4%***
99% (product
packaging supply
chain)
100%
*
Including trims and excluding licensee production
** Better Cotton Initiative (BCI) principle: Biodiversity and Land Use is one of the seven Better Cotton Principles and Criteria.
Management practices address identifying and mapping biodiversity resources, identifying and restoring degraded areas,
enhancing populations of beneficial insects, ensuring crop rotation and protecting riparian areas.
*** Including outer cardboard
Most of the negative impact on biodiversity comes from three stages in the value chain – raw material
production, material preparation and processing, and end of life.
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To mitigate the risk of biodiversity loss due to the production process, we address environmental pollution
risk through our targets and supplier programmes related to climate, chemicals, water and air.
In 2021 we developed roadmaps for water and waste, which can be found in the Water and Air, and
Circularity sections of this report. In 2022 we developed a biodiversity roadmap using the Fashion Pact
Biodiversity Strategy Tool Navigator that is in line with SBTN recommendations.
At cotton farming level, Regenerative Agriculture practices aim to reduce the impact of production on soils
and promotes soil health by restoring the soil’s organic carbon. Through our partnership with Better Cotton,
we support regenerative cotton farming practices. BCI farmers have to follow these two principles, among
others:
• Care for the health of soil: This principle requires farmers to develop a Soil Management Plan. The plan
should include practices that contribute to maintaining and enhancing soil structure and soil fertility,
and continuously improving nutrient cycling.
• Enhance biodiversity and use land responsibly: This principle requires Better Cotton farmers to adopt a
Biodiversity Management Plan to conserve biodiversity on and around their farm. This plan includes
regenerative farming practices such as ensuring crop rotation, which helps with soil regeneration.
BIODIVERSITY ROADMAP
Scope: Cotton, Leather, Rubber, Paper, MMCF, Synthetics, Wool
Below are some key focus areas for the coming years. Some measures were implemented in 2022 and 2023
and are covered in this report.
• Raise awareness: We see the need to raise awareness internally and will be developing an e-learning on
biodiversity for our staff. We also see the need to increase the awareness of our consumers. We aim to
maintain transparency to keep a strong relationship with stakeholders while providing information about
biodiversity actions. In 2022, PUMA sponsored the Biodiversity Landscape Analysis Report as an
opportunity to foster collaboration and knowledge-sharing in biodiversity. Together with Textile
Exchange, Conservation International and the Fashion Pact, the Biodiversity Landscape Analysis Report
aims to provide a common reference point on the topic of biodiversity in the textile industry, and to offer
concrete pathways for brands and retailers to deepen their engagement. The report, which was
published in 2023 intends to help companies of all sizes and maturities to begin or continue their
biodiversity journey.
• Knowledge of impact: We will explore traceability tools and conduct impact assessments, starting with
leather and rubber. We collect material and packaging consumption data on an annual basis for the
country of origin. For example, only a small percentage of the total leather used in PUMA products
originates from South America, where deforestation is occurring at a rapid pace. Our EP&L identifies
how the environmental impact is distributed along our value chain, for example, land use change per
country, material type and tier level. The potential financial impact on land use was estimated to be
approximately € 100 million in our 2023 EP&L.
• Internal action: We will define a KPI to be included in a supplier scorecard (environmental and chemical)
and set biodiversity targets as well as traceability targets, starting with leather. We set goals to reach
100% cotton, leather, viscose, paper packaging and down-procured from certified sources in 2025. Both
cotton farming and cattle ranching require extensive land use and are known to reduce biodiversity,
99.2% of cotton used in PUMA products is BCI or recycled cotton. 99.7% of the leather used in our foot-
wear is sourced from Leather Working Group (LWG) medal-rated tanneries. Leather traceability is a first
step towards reducing deforestation. We monitor our LWG medal-rated tanneries' traceability
performance and have joined the LWG Traceability working group. We partner with the NGO, Canopy, a
Canadian non-profit organisation with the mission to protect the world’s forests, species and climate,
and to help advance indigenous communities’ rights. We aim to ensure that our sourcing of man-made
cellulosic materials (such as viscose) as well as paper and cardboard, does not contribute to de-
forestation. 99.4% of our paper packaging is either recycled and/or FSC-certified. We commit to sourcing
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100% of our viscose from suppliers committed to reducing the risk of sourcing from ancient and
endangered forests. In 2023, 84% of viscose was sourced from Green Shirt-rated suppliers. We hardly
used wool (6,566 kg in 2023), but we have initiated Responsible Wool Standards certification. We aim to
reach 100% certified responsible wool by 2025.
• Collaboration and partnership: PUMA joined the Fashion Pact, a global coalition of companies in the
fashion and textile industry that is committed to stopping global warming, restoring biodiversity and
protecting the oceans. PUMA joined the Fashion Charter, and committed to sourcing 100% of priority
materials as preferred materials by 2030 (material for which no natural ecosystems are converted or
deforested). In 2021 we engaged with Canopy, who helped us develop our policy on forest protection. We
also engaged with Canopy‘s initiatives: CanopyStyle and Pack4good. Through these initiatives, we started
investigating the next generation of raw materials with a focus on biobased materials, such as wheat
straw, as a partial substitute for paper in our shopping paper bags.
BIODIVERSITY RISK ASSESSMENT
In 2023, we conducted a biodiversity risk assessment for our key raw materials such as cotton, polyester
and leather. For cotton and polyester, we used the Materials Impact Explorer tool provided by Textile
Exchange. For leather, we used the Biodiversity Risk and Impact Dashboard of Fashion Pact. PUMA is
currently taking steps to mitigate biodiversity risks and address environmental pollution risks through our
targets and supplier programmes related to the climate, chemicals, water and air.
We evaluated the environmental risk of rubber using the EiQ platform from Elevate. EiQ is a data-driven
supply chain Environmental, Social, and Governance (ESG) due diligence platform used by businesses to
enhance ESG risk management. The environmental risk encompasses water use, non-GHG air pollutants,
terrestrial ecosystem use, soil pollutants, solid waste and water pollutants. We also mapped our sourcing of
these materials by country.
For cotton and polyester, we mapped our material consumption by country of origin using the Materials
Impact Explorer tool to evaluate the potential impact on biodiversity in terms of changes in the state of
nature (quality or quantity) which may result in changes to the capacity of nature to sustain social and
economic functions. We also evaluated the risk of dependency in terms of environmental assets and
ecosystem services that an organisation relies on to function. The dependency risk rating for recycled cotton
and recycled polyester is not applicable as per the tool used. The outcome of the assessment is
summarised below. The risk profile of a few countries from which PUMA is sourcing cotton and polyester
is not available in the tool. However, such countries represent less than 5% of our sourcing volume for
cotton and 13% for polyester.
As a next step, we will look at a collaborative approach and join programmes with third-party initiatives to
understand governance challenges.
Cotton: In 2023, we sourced 63% of cotton from the USA, followed by Brazil (15%) and Australia (8%). These
three countries have high a risk rating for potential impact. 4% of cotton is sourced from India which a very
high-risk country.
In terms of dependency risk, the USA, Brazil and Australia are categorised as high-risk countries, whereas
India is categorised as a very high-risk country.
We have required our suppliers to source only cotton grown in farms that are licensed as having good
farming and human rights standards or recycled cotton from factories that are either Global Recycled
Standard (GRS) or Recycled Claim Standard (RCS) certified in 2025.
PUMA is taking steps to mitigate the biodiversity risks associated with the cotton sourcing. These include
the adoption of BCI cotton, increased usage of recycled cotton, focusing on innovation to increase the share
of recycled cotton in our products, conducting Life Cycle Assessment of products and materials to evaluate
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environmental impact in different lifecycle stages and engaging with textile exchange to stay informed on
industry best practices.
We collect material consumption data on an annual basis along with the country of origin and require our
suppliers to keep all the supportive documentation at disposal. We have also established an on-going due
diligence programme with our partner laboratory in Germany where we regularly test samples of cotton
finished garments before shipment. This further strengthens traceability and control across our supply
chain, from the raw material to the finished products.
Through our partnership with Better Cotton, we support regenerative cotton farming practices. Better
Cotton Soil Health principles require farmers to develop a Soil Management Plan. The plan should include
practices that contribute to maintaining and enhancing soil structure and soil fertility, and continuously
improving nutrient cycling.
Better Cotton Biodiversity principles require Better Cotton farmers to adopt a Biodiversity Management
Plan to conserve biodiversity on and around their farms. This Plan includes regenerative farming practices
such as ensuring crop rotation, which helps with soil regeneration. Biodiversity loss and climate change are
interdependent and mutually reinforcing. Protecting forests, for example, could help reduce greenhouse gas
emissions.
Through our partnership with Better Cotton, we also support cotton farmer producers for climate-friendly
practices, Better Cotton has set the goal of reducing greenhouse gas emissions by 50% per ton of Better
Cotton lint produced by the end of the decade.
In 2023, the share of BCI cotton was 90% and recycled cotton made up 8.6% of all cotton sourced by PUMA.
Polyester: We sourced 79% of our polyester from China in 2023, followed by Taiwan 9.2% and Vietnam
7.4%. We sourced both virgin polyester and recycled polyester from China, whereas we sourced only
recycled polyester from Taiwan and Vietnam. China has a very high-risk rating in terms of the potential
impact of virgin polyester. Recycled polyester is rated as medium risk irrespective of country of origin by the
Textile Exchange tool.
In terms of risk related to dependency, China, Turkey, South Korea, Japan and Indonesia are rated as very
high-risk countries for virgin polyester whereas the USA and Germany are considered as high-risk
countries. However, apart from China, we source a negligible volume (around 1%) from high, and very high-
risk countries.
We have required our suppliers to source only polyester-certified to Bluesign/ Oekotex, or recycled polyester
from factories that are either Global Recycled Standard (GRS) or Recycled Claim Standard (RCS) certified in
2025. PUMA has joined the Textile Exchange polyester challenge, since our 2025 goal of 75% recycled
polyester is aligned with this challenge. While most of our recycled polyester to date has been made
from PET bottles, PUMA launched the innovative RE:FIBRE programme, and can repurpose collected textile
waste and other used materials to create new textiles. We engaged our core fabric manufacturing plants in
energy efficiency programmes and are helping them to transition to 25% renewable energy processing in
2025. We monitor and report chemical discharges, and work to eliminate pollutant chemicals.
In 2023, we sourced a bio-based, high-performance polyester fibre known as Sorona, which constitutes
0.11% of our total polyester consumption. Sorona contains over 20% bio-based carbon, which helps reduce
the environmental impact without sacrificing quality and performance. Sorona is produced using a
fermentation process which utilizes corn sugar as the main ingredient.
Leather: The Fashion Pact Dashboard allows us to assess overall risk in terms of biodiversity loss and land
use area. However, biodiversity risk specific to leather usage by a brand or company cannot be evaluated by
using this dashboard. We plan to explore a more specific tool for leather in future.
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In 2023, we sourced 61% of our leather from the USA, followed by Argentina (27%), Australia (6%) and Brazil
(5%). The risk assessment indicates that the USA has a risk rating of very high for land use impact and high
risk for biodiversity loss, while Argentina has a very high-risk rating for land use impact and a medium risk
rating for biodiversity loss. Australia has a medium-risk rating for both impact categories while Brazil has
very high-risk rating for both impact areas.
PUMA is taking several steps to mitigate the biodiversity risks associated with leather sourcing. These
include sourcing leather from LWG-rated tanneries, setting goals for sourcing deforestation-free leather,
and focusing on innovation in the development of recycled and other bio-based alternatives. We engage with
Fashion Pact, Textile Exchange and the Leather Working Group to remain updated about industry best
practices.
We have committed to sourcing all the bovine leather used in our products from verified deforestation-free
supply chains by 2030 or earlier launched by global non-profits Textile Exchange and the Leather Working
Group. The initiative aims to create equitable, transparent, and deforestation-free leather supply chains. The
cross-sector initiative is aimed at galvanizing brands into action to end the deforestation and conversion of
natural ecosystems linked to leather sourcing. In doing so, it looks to protect wildlife habitats and
biodiversity, preserve carbon stocks to mitigate climate change, and protect human rights.
Close to 100% of the leather that PUMA currently sources comes from Leather Working Group-certified
tanneries. This means that the leather used in PUMA products comes from manufacturers who are working
to implement industry best practices of environmental management and traceability. PUMA currently
monitors its LWG medal-rated tanneries’ upstream traceability performance.
However, around 76% of the leather used at PUMA is suede, a byproduct of the full-grain leather business.
The challenge faced currently by PUMA and others in the industry is that most suede tanneries work with
agents and intermediaries alongside direct tanneries, to guarantee a stable supply which creates a
challenge to have full traceability at the cattle ranch level.
Our innovation team has worked to address the technological limitations of a shoe designed for composting
and launched the RE:SUEDE experiment. In 2022, 500 participants were asked to wear their RE:SUEDEs for
six months before returning them to PUMA for the next stage of the experiment. A total of 412 pairs of worn
RE:SUEDEs were returned to PUMA and sent to our industrial composting partner Valor Composting – a
family business that takes a different approach to waste. We discovered that it is possible to turn the
RE:SUEDE into Grade A compost under specific industrial conditions provided by Ortessa. RE:SUEDE is
mainly made up of zeolite-tanned suede leather, hemp fibres, biodegradable TPE and organic cotton. The
zeolite tanning process is an innovative approach to in tanning chemicals, which use mineral zeolite and is
free from toxic substances such as chrome, heavy metal and aldehyde. We will continue to innovate with our
partners to determine the infrastructure and technologies needed to make the process viable for a
commercial version of the RE:SUEDE, including a take-back scheme, in 2024.
Synthetic Rubber: We sourced, 74% of our synthetic rubber from China, followed by Vietnam 14% and South
Korea 4%. China and South Korea are high-risk countries, while the risk profile for synthetic rubber from
Vietnam is not available on the EiQ platform. High risks are Greenhouse Gas emissions, water use and solid
waste.
We have not yet mapped the manufacturing plants supplying synthetic rubber to our outsole manufacturers.
As part of our 10FOR25, we work on developing recycled materials as alternatives to rubber. In 2023, 5% of
synthetic rubber was recycled. We engage our strategic outsole suppliers in Higg FEM (environmental
performance tool measurement which includes energy use and greenhouse gas emissions, water use,
wastewater, emissions to air and waste management) and work with them to eliminate pollutant chemicals.
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Natural Rubber: In 2023, we sourced 29% of natural rubber from Vietnam, followed by Brazil 25%,
Pakistan 13%, and Thailand 5%. Vietnam is categorised as an extreme risk country, while risk profiles for
natural rubber from Brazil, Pakistan and Thailand are not available on the EiQ platform. The main high risks
are water use and impact on ecosystem. In 2023, only 2% of the rubber used in our products was natural
rubber. We aim in future to only source FSC certified rubber. FSC certification include adopting standards to
maintain, conserve, and/or restore the ecosystem and environmental values of managed forests and avoid,
repair, or mitigate negative environmental impacts.
↗ G.35 PUMA CDP FOREST SCORE
PUMA’s CDP Forestry score improved from C in 2021 to B- in 2022. Until the end of January, 2024, we
retained our B-score. PUMA’s rating is better than the average performance of the sector (textile and fabric
goods) which has an average rating of C. The overall global average rating stands at C. For more
information, please visit the CDP website.
↗ T.49 E-KPIS - PAPER
1-4
*
Including paper bags, office paper and cardboard consumption
** Including outer cardboard boxes
1
PUMA figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in
Argentina. All other production is outsourced to independent supplier factories, some warehouse operations are outsourced
to independent logistics providers. Franchised stores are excluded.
2
PUMA production figures include core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories) and core Tier
2 supplier factories, Leather, PU and Textiles (40 factories).
3
Data includes extrapolations or estimates where no real data could be provided.
4
Methodological changes over the last three years have influenced results.
C
2020
C
2021
B-
2022
Paper (tons)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Paper and cardboard
consumption PUMA*
5,374
5,021
4,152
2,638
2,281
2,756
7%
95%
Certified or recycled paper and
cardboard consumption PUMA
4,911
4,393
3,306
1,848
1,818
2,025
12%
143%
Percentage of certified or
recycled paper consumption
91%
87%
80%
70%
80%
74%
Paper and cardboard
consumption from PUMA
production (shoe boxes,
hangtags)
25,602** 30,656** 19,670**
18,538
14,863
14,129
-16.5%
81.2%
Percentage of certified or
recycled paper and cardboard
consumption from PUMA
production
99%**
99%**
88%**
99%
100%
n/a
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ENVIRONMENTAL KEY PERFORMANCE DATA
Г
The PUMA Environmental Profit and Loss Account, or EP&L, calculates the environmental impact of
PUMA's activities in financial terms across six categories from raw material production to the PUMA store.
While the EP&L is not a precise measurement tool, it helps to show the categories and stages of the value
chain in which the impact is greatest and therefore gives a good indication of where we should focus our
efforts.
The EP&L methodology, was developed in 2011 by PWC and Truecost, and later refined by Kering with the
help of PWC. It mainly relies on material input and spending data.
Over the last years, we have added primary data for our Tier 1 and Tier 2 suppliers and developed specific
EP&L emission factors for major materials used, such as Better Cotton.
However, we are still in the process of fully aligning our EP&L methodology for Tiers 3 and 4 with internal
and external standards. As a result, the table below differs from our Scope 3 emission calculation in the
Climate section and also results in a high water value for Tier 3 due to some wet processing for leather and
polyester being attributed to Tier 3.
We will continue to work on the alignment of methodologies to strengthen the EP&L as a valuable risk
assessment and information tool.
↗ G.36 EP&L RESULTS 2023
Air pollution
GHG emission
Land use
Waste
Water use
Water pollution
Tier 0
Own
operations
Tier 1
Product
manufacturing
Tier 2
Component
manufacturing
Tier 3
Raw material
processing
Tier 4
Raw material
production
2%
9%
14%
28%
48%
Total
EP&L Value 2023: € 415 million
10%
33%
21%
4%
11%
22%
100%
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↗ G.37 EP&L TREND 2020 – 2023
From our EP&L results, we can conclude that the production (48%) and processing of raw materials (28%) is
responsible for the vast majority of the environmental impact from a process point of view, while
greenhouse gas emissions (33%), water pollution (22%) and land use (21%) are responsible for over half of
all environmental impact measured by the EP&L in terms of impact categories.
This confirms our strategy of transitioning to the use of low-impact materials at scale, while focusing on the
reduction of greenhouse gas emissions across our supply chain.
The EP&L trend over the last years shows that the EP&L value is growing slower than sales. This means
that while the overall impact was growing, we were able to reduce the EP&L value relative to sales. In 2023,
we achieved an absolute reduction.
└
PRODUCT/MATERIAL-RELATED E-KPIS
We have been measuring the average environmental key performance indicators (E-KPIs) from Textile and
Leather manufacturing (Tier 2) and Apparel and Footwear manufacturing (Tier 1) since 2017.
In 2023, the Greenhouse Gas emissions KPIs reduced across the product divisions, both Tier 1 and Tier 2,
except for the footwear division, where it almost remained stable (increase by 0.2%) as compared to 2020.
CO2 emissions per piece of garment reduced by 23.2%; per square metre of leather produced, CO2 emissions
have reduced by 40.7% and per ton of textile produced, CO2 emissions reduced by 9.2%. This was mainly
achieved due to various climate actions initiated as described in the report. The participation of core
suppliers in cleaner production and renewable energy programmes, installation of rooftop solar projects,
switching from coal to biomass, and the purchase of RECs are the main contributor for these reductions
achieved in Greenhouse Gas emissions.
In 2023, water consumption per pair/square metre reduced for footwear by 21.5% and 4.9% for textile as
compared to the baseline of 2020 mainly due to the implementation of water efficiency measures including
water recycling plants by a few textile mills towards the end of 2022.
However, the water KPI increased for apparel by 9.4%, and for leather by 11.7%. For apparel, production
reduced by 15% as compared to 2020 (which is 33% reduction from 2022). Most of the apparel factories use
water for domestic purposes and hence water consumption depends on the number of workers. In 2023, the
market environment and increased inventory levels resulted in a need for more cautious procurement from
441
530
549
415
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0
100
200
300
400
500
600
700
800
2020
2021
2022
2023
EP&L Value
Revenue
PUMA Annual Report 2023
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our suppliers, so the number of workers in core apparel factories decreased by 9% and production fell by
15% resulting in higher water consumption per piece of apparel as compared to 2020.
Out of five leather factories, two were new core factories and have not participated in resource efficiency
programmes. One of the tanneries in China has relatively high water consumption as they process raw hide
in-house, whereas other leather tanneries process wet blue leather (tanned leather, but not dried, dyed nor
finished). Also, one tannery in Vietnam started tracking and reporting rainwater usage in 2023.
In 2023, production waste to landfills decreased by 87.4% for apparel and by 64.7% for the footwear division
as compared to the 2020 baseline. This is mainly due to the adoption of better waste disposal practices by
our suppliers and being able to achieve diversion from landfill. We also observed that factories were able to
track and report waste data more accurately.
↗ T.50 FOOTWEAR E-KPI RESULTS (TIER 1)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
suppliers
Energy/pair (kWh)
1.63
1.36
1.41
1.31
1.30
1.25
1.40
24.8%
21
CO2/pair (kg)
0.75
0.7
0.68
0.74
0.96
0.93
1.00
0.2%
Water/pair (L)
11.8
9.6
11.9
15.1
15.2
12.3
14.5
-21.5%
Waste/pair (g)
122
134
141
145
127
109
116
-15.6%
Waste to
landfills/pair (g)
8.36
12.3
19.0
23.7
-
-
-
-64.7%
↗ T.51 APPAREL E-KPI RESULTS (TIER 1)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/piece
(kWh)
0.58
0.52
0.55
0.56
0.57
0.57
0.72
4.5%
19
CO2/piece (kg)
0.17
0.19
0.20
0.22
0.24
0.26
0.31
-23.2%
Water/piece (l)
5.03
3.83
4.23
4.60
4.39
4.20
7.58
9.4%
Waste/piece (g)
60.7
58.2
62.3
54.3
56.3
46.5
44.0
11.8%
Waste to
landfills/piece (g)
0.33
2.66
2.40
2.64
-
-
-
-87.4%
↗ T.52 LEATHER E-KPI RESULTS (TIER 2)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/SqM (kWh)
7.37
7.55
6.46
7.05
8.19
8.65
9.10
4.5%
5
CO2/SqM (kg)
1.61
2.34
1.89
2.72
3.21
3.16
3.39
-40.7%
Water/SqM (L)
76.4
56.9
60.9
68.3
74.7
90.20
91.80
11.7%
Waste/SqM (kg)
0.67
0.60
0.50
0.68
0.78
0.85
1.56
-1.4%
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↗ T.53 TEXTILES E-KPI RESULTS (TIER 2)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/ton (kWh)
14,320
13,122
13,394
13,049
12,636
13,387
13,679
9.7%
32
CO2/ton (T)
4.06
4.54
4.58
4.47
4.37
4.45
4.45
-9.2%
Water/ton (m3)
98.3
98.5
98.7
103
106
123
119
-4.9%
Waste/ton (kg)
276
289
121
78.9
62.1
70.6
300
250.0%
For tables on E-KPI results, the values for November and December 2023 were estimated by employing the Exponential
Smoothing (ETS) algorithm in Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after
comparing it to alternative methods, considering its performance against actual historical data, specifically in terms of deviation
from the actual values in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to
other methods, such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per
production unit) from the 12 months of data spanning from November 2021 to October 2022.
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REPORTING IN ACCORDANCE WITH THE EU
TAXONOMY REGULATION
TAXONOMY OBJECTIVES
The Taxonomy Regulation (EU) 2020/852 (in the following “the Taxonomy”) entered into force on 22 June 2020.
The purpose of this regulation is to provide a definition of what constitutes a sustainable economic activity
and to redirect capital flows into companies that are aligning their business models towards such sustainable
economic activities. To achieve this goal, companies must report on the proportion of “environmentally
sustainable” revenues, investments (capital expenditure) and operating expenses.
The focus of the Taxonomy lies on 6 environmental objectives:
• Climate change mitigation
• Climate change adaptation
• Sustainability and protection of water and marine resources
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems
• Transition to a circular economy
The Taxonomy has identified eligible economic activities that substantially contribute to each of these
environmental objectives. Linked to these eligible activities are technical screening criteria as well as do no
significant harm criteria and minimum safeguards that define whether the activity is considered sustainable
or not (aligned).
Delegated Regulation (EU) 2021/2178 as of July 6, 2021 on the climate objectives (climate change mitigation
(Annex I) and climate change adaptation (Annex II)) (“the Climate Delegated Act”), was published in the
Official Journal on December 9, 2021 and entered into force on January 1, 2022 ((EU) 2021/2139). Further
delegated acts for the remaining objectives were published in 2023, namely EU 2022/1214 (Complementary
Climate DA), EU 2023/2485 (amending EU 2021/2139), EU 2023/2486 (targets three to six), C(2023)3850
(Amended Climate DA) and C(2023)3851 Environmental DA (targets three to six).
DISCLOSURE REQUIREMENTS FOR NON-FINANCIAL UNDERTAKINGS
According to Article 2 of the Climate Delegated Act and Article 8 of the Taxonomy any undertaking subject to
the Non-Financial Reporting Directive (NFRD) must provide information on “environmentally sustainable”
revenues, investments (capital expenditure) and operating expenses (OpEx).
According to Article 10 of the Climate Delegated Act undertakings must disclose the proportion of
Taxonomy-eligible and Taxonomy non-eligible economic activities in their total turnover, capital expenditure
and operational expenditure. The eligibility of an activity implies that an activity is included in the Climate
Delegated Act. Whether an activity is Taxonomy-eligible or not says nothing about the sustainability of that
activity. Being Taxonomy-eligible is merely an indication that a certain activity makes a substantial
contribution to one of the six environmental objectives of the Taxonomy. From January 1, 2023, the
disclosure must also include information on taxonomy alignment, meaning only activities that are included
in the “environmentally sustainable share” of the three performance indicators. An economic activity is
environmentally sustainable if it:
• makes a significant contribution to the achievement of one or more environmental goals (significant
contribution, SC)
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• does not result in significant harm to one of more of the environmental objectives (do no significant
harm, DNSH)
• is carried out in compliance with a defined minimum level of protection (minimum safeguards, MS) and
complies with technical screening criteria (TSC) of Annex I and Annex II.
TAXONOMY-ELIGIBILITY OF PUMA’S ECONOMIC ACTIVITIES IN RESPECT TO THE
ENVIRONMENTAL OBJECTIVES OF THE EU TAXONOMY
The technical screening criteria in Annex I and Annex II of Delegated Regulation (EU) 2021/2139 of June 4,
2021 for the first two environmental objectives, namely climate change mitigation and climate change
adaptation, do not list any business activities that are linked to the production and sale of footwear, apparel
and accessories. This means that PUMA’s business activities so far do not qualify as contributing
substantially to climate change mitigation or climate change adaptation.
Further technical screening criteria were published as Annexes I, III and IV of Delegated Regulation (EU)
2023/2486 (supplementing EU 2020/852) of June 27, 2023, for the remaining environmental objectives,
namely sustainable use and protection of water and marine resources, pollution prevention and control as
well as restoration of biodiversity and ecosystems. Likewise, these do not list any business activities that are
linked to the production and sale of footwear, apparel and accessories.
For the remaining environmental objective published as Annex II, the transition to a circular economy,
activities related to apparel are listed, but are limited to sales generated by services such as repair,
remanufacturing or refurbishment, preparation for reuse, sale of second-hand goods, or product as a
service business models, none of which are not part of PUMA current revenue generating activities.
As mentioned in the Circularity section of this report, PUMA and its partners are piloting fibre to fibre
recycling technology and take-back systems. However, those activities have not generated any significant
Taxonomy-eligible or aligned sales under the definition of Annex II and had a project status in 2023.
Therefore, PUMA’s business activities in this regard are not considered Taxonomy-eligible (so far). Since
PUMA does not have any economic activities related to nuclear power or power generation from gas, PUMA
will not report the related standard forms from the Delegated Act (EU 2022/1214).
ELIGIBLE CAPITAL EXPENDITURE
PUMA understands that the Taxonomy and the Climate Delegated Act as well as the Environmental
Delegated Act including its Annexes nonetheless requires non-financial undertakings with non-Taxonomy
eligible economic activities to report on the part of the capital expenditure related to the purchase of output
from Taxonomy-aligned economic activities and individual measures enabling target activities to become
low-carbon or to lead to greenhouse gas reductions.
In this regard PUMA reviewed so-called cross-cutting activities that are not directly related to PUMA’s
primary business activity and are not revenue-generating for PUMA but still are of relevance to support
PUMA’s sustainability efforts. Taxonomy-eligible capital expenditure could be identified with regard to
“Transport” and “Real Estate Activities”.
The key figures are determined based on Delegated Regulations (EU) 2020/852, 2021/2139 and 2021/2178 as
well as 2023/2385 and 2023/2086 in conjunction with the accounting policies to be applied to the
consolidated financial statements. To avoid double counting, expenditure has been allocated to only one
economic activity.
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In 2023 PUMA made investments in several buildings, including:
• A new solar PV station in Germany (planned completion in 2024)
• New charging stations in Germany
• Office space in Argentina
The technical screening criteria of Annexes I and II define a taxonomy-aligned investment in buildings only
for those buildings that are ranked among the top 15% of their regional building stock in terms of Primary
Energy Demand (PED).
Since there is no precise definition of this 15%, for example in terms of area covered or primary energy
demand per m
2, and as the rental of buildings is not material to PUMA’s business performance in terms of
CO2 emissions, we have decided to report the Taxonomy-aligned investment in buildings for 2023 as zero.
This does not mean that PUMA is not investing in lowering CO2 emissions from its own entities. As described
in the Climate section of this report, our Scope 1 and 2 emissions have been reduced by 85% compared to
our baseline in 2017, mainly through green electricity tariffs or renewable energy attribute certificates.
In 2023 PUMA also invested in charging stations for electric cars, which do fall under the taxonomy
alignment criteria for climate mitigation. The total investment in these charging stations was 241 TEUR
(2022: 79 TEUR).
Furthermore, PUMA started to invest in additional solar PV capacity at its headquarters in Germany. The
investment in 2023 came to 262 TEUR (no investment in 2022).
As part of PUMA’s 10FOR25 sustainability targets, PUMA is transitioning its car fleet to more sustainable
transport vehicles. Therefore, in 2023 PUMA invested in the lease of 92 low or zero emission vehicles (2022:
64 vehicles).
Unlike buildings, the technical screening criteria for CO2 emissions for taxonomy alignments are clearly
defined as below 50 g CO2/km.
We can confirm that 92 cars added to our car fleet are Taxonomy-aligned with the technical screening
criteria based on their CO2 emission footprint, equalling an investment of over 2,000 TEUR (2022: 1,521 TEUR)
Considering the do-no-significant harm criteria of tires for passenger cars, not all those cars can be
considered as fully Taxonomy-aligned, as many of the standard tires used for our new electric cars from
Tesla, Volkswagen, Hyundai, Mercedes and BMW do not fulfil the criteria for noise emissions. As a result
the reported Taxonomy-aligned investment in vehicles for the year 2023 is 408 TEUR (2022: 372 TEUR).
The total capital expenditure (IAS 16, 38 and IFRS 16) of the PUMA Group amounts to 599,874 TEUR for the
year 2023 (2022: 669,382 TEUR). The eligible capital expenditure related to “Transport” amounts to 7,930
TEUR (2022: 5,427 TEUR) and the amount related to“Real Estate Activities /Other” is 336,500 TEUR
(2022:376,996 TEUR). The Taxonomy-aligned capital expenditure from investment in solar PV, low or zero
emission cars and charging stations for electric cars was 910 TEUR (2022: 372 TEUR).
ELIGIBLE OPERATIONAL EXPENDITURE
PUMA understands that the Taxonomy and the Disclosure Delegated Regulation (EU 21/2178) nonetheless
asks non-financial undertakings with non- Taxonomy eligible activities to report on the part of the
operational expenditure related to the purchase of output from Taxonomy-aligned economic activities and
individual measures enabling the target activities to become low-carbon or to lead to greenhouse gas
reductions.
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Due to the nature of our business model, which is the design, development, marketing and sale of footwear,
apparel and accessories, the eligible operational expenditure is not material in the context of the
environmental objectives of the Taxonomy, therefore the numerator of our taxonomy-eligible operational
expenditure is zero.
For the denominator, Article 2, Section 1.1.3.1. of Annex 1 the Climate Delegated Act asks for reporting on the
total operational expenditure derived from the categories “research and development, building renovation
measures, short-term lease, maintenance and repair and any other direct expenditures related to the day-
to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom
activities are outsourced that are necessary to ensure the continued and effective functioning of such
asset.” The total operational expenditure from these categories amounts to 113.4 TEUR (2022: 103.6 TEUR)
for the 2023 financial year.
OUTLOOK
At PUMA, we will continue the transition of our car fleet to low or zero emission vehicles in those countries
where the charging infrastructure can support running an electric car fleet. We also plan to continue
investing in te renewable energy capacity of the buildings we own. In addition, we will explore the activities
listed under “Transition to a circular economy” to assess their technical and financial viability over the next
years.
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Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Turnover
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxnomy-
aligned (A.1) or eligible (A.2)
turnover, year 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
Taxonomy-aligned environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which enabling
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
Taxonomy-eligible environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Turnover of Taxonomy-eligible but not environmentally
sustainable activities
(not Taxonomy-aligned activities) (A.2)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
PUMA Annual Report 2023
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193
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Turnover
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxnomy-
aligned (A.1) or eligible (A.2)
turnover, year 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. Turnover of Taxonomy eligible activities (A.1+A.2)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
8,601,699,000 100
TOTAL
8,601,699,000 100
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194
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
CapEx
Proportion of CapEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
Activity 1: Installation, maintenance and repair of
charging stations for electric vehicles in buildings
(and parking spaces attached to buildings) (7.4)
F42,
F43,
M71
240,000
0.04
Y
Y
N/EL
N/EL
N/EL
N/EL
Y n.a. n.a. n.a. n.a. n.a.
Y
0.01
E
Activity 2: Installation, maintenance and repair of
renewable energy technologies (7.6)
F42,
F43,
M71
262,000
0.05
Y
Y
N/EL
N/EL
N/EL
N/EL
Y n.a. n.a.
Y
Y n.a.
Y
0
E
Activity 3: Transport by motorbikes, passenger
cars and light commercial vehicles (6.5)
N77.11
408,000
0.07
Y
Y
N/EL
N/EL
N/EL
N/EL
Y
Y n.a.
Y
Y n.a.
Y
0.04
E
CapEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
910,000
0.16
0.16
0.16
0
0
0
0
Y
Y n.a.
Y
Y n.a.
Y
0.05
Of which enabling
910,000
0.16
0.16
0.16
0
0
0
0
Y
Y n.a.
Y
Y n.a.
Y
E
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
T
PUMA Annual Report 2023
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Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
CapEx
Proportion of CapEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
Activity 1: Acquisition and ownership of buildings
(7.7)
L68
335,998,000 60.01
EL
EL
N/EL
N/EL
N/EL
N/EL
56.31
Activity 2: Transport by motorbikes, passenger
cars and light commercial vehicles (6.5)
N77.11
7,522,000
1.34
EL
EL
N/EL
N/EL
N/EL
N/EL
0.77
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
343,520,000 61.36 61.36 61.36
0
0
0
0
57.09
A. CapEx of Taxonomy eligible activities (A.1+A.2)
344,430,000 61.52 61.52 61.52
0
0
0
0
57.13
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
215,444,000 38.48
42.87
TOTAL
559,874,000
100
PUMA Annual Report 2023
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196
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
OpEx
Proportion of OpEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-
aligned)
Taxonomy-aligned environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
OpEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which enabling
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
Taxonomy-eligible environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
0
0
0
0
0
0
0
0
0
A. OpEx of Taxonomy eligible activities (A.1+A.2)
0
0
0
0
0
0
0
0
0
PUMA Annual Report 2023
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Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
OpEx
Proportion of OpEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
113,400,000 100
TOTAL
113,400,000 100
PUMA Annual Report 2023
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INDEX FOR COMBINED NON-FINANCIAL REPORT
AND GRI CONTENT
This report constitutes a separate combined non-financial report in accordance with Sections 289b to 289e
and 315b, 315c in conjunction with Sections 289c to 289e of the German Commercial Code (HGB). This
consolidated combined non-financial report consists of the "Sustainability" and "Culture" subsections in the
"Our People"section as well as “Compliance Management System” and “Corporate Social Responsibility” in
the chapter “Corporate Governance Statement in accordance with Section 289f and Section 315d HGB”. The
reporting period covered is from January 1, 2023 to December 31, 2023. No restatements of information have
been made in this report. We have provided separate reports for PUMA SE and the PUMA Group within the
“Our People” section only. Separate reporting of other sustainability data would not add any meaningful new
information or value and would require significant additional resources, so we have omitted it here.
Information about PUMA’s business model is set out in the Financial section of this Annual Report. We have
not identified any most significant non-financial performance indicators according to Article § 289c, section
3, number 5 of the German Commercial Code (HGB). PUMA engaged KPMG AG Wirtschaftsprüfungs-
gesellschaft to perform a “limited assurance” audit of the combined sustainability report with a focus on
accordance with the German CSR Implementation Act (CSR-RUG).
Since 2003 PUMA’s sustainability reports are based on the guidelines of the Global Reporting Initiative (GRI),
which developed detailed and widely recognised standards on sustainability reporting. PUMA SE has
prepared this report with reference to the GRI Standards GRI 1: Foundation 2021. This option enables us to
report on the impacts related to our economic, environmental, social and governance performance. It
includes topics that are material to PUMA’s business and our key stakeholders, and that constitute our
sustainability targets. These targets have been systematically developed in accordance with the feedback
from PUMA’s stakeholders.
PUMA Annual Report 2023
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199
GENERAL DISCLOSURES
Location
Pages
GRI 2: General
Disclosures 2021
2-1 Organisational details
Commercial activities and organisational
structure
214
2-2 Entities included in the
organisation’s sustainability reporting
Scope of the Report
48
2-3 Reporting period, frequency and
contact point
Index for combined non-financial report
and GRI content, Imprint
198
2-4 Restatements of information
Index for combined non-financial report
and GRI content
198
2-5 External assurance
Limited assurance report of the
independent practitioner regarding the
separate non-financial group report
205
2-6 Activities, value chain and other
business relationships
Commercial activities and organisational
structure; Sourcing
214, 220
2-7 Employees
Our People; Employees
16, 222
2-9 Governance structure and
composition
Description of the working practices of
the management board and the
supervisory board
254
2-10 Nomination and selection of the
highest governance body
Description of the working practices of
the management board and the
supervisory board
254
2-11 Chair of the highest governance
body
Description of the working practices of
the management board and the
supervisory board
254
2-12 Role of the highest governance
body in overseeing the management of
impacts
Sustainability organisation and
governance structure; Description of the
working practices of the management
board and the supervisory board
36, 254
2-13 Delegation of responsibility for
managing impacts
Sustainability organisation and
governance structure
36
2-14 Role of the highest governance
body in sustainability reporting
Sustainability committee
8
2-15 Conflicts of interest
Diversity concept for the supervisory
board
254
2-16 Communication of critical concerns Risk and opportunity report
255
2-17 Collective knowledge of the highest
governance body
Compensation System
https://about.puma.com/en/investor-
relations/corporate-governance
2-19 Remuneration policies
Description of the working practices of
the management board and the
supervisory board
254
2-20 Process to determine remuneration Description of the working practices of
the management board and the
supervisory board.
Compensation System
https://about.puma.com/en/investor-
relations/corporate-governance
254
PUMA Annual Report 2023
↗ Sustainability
200
Location
Pages
GRI 2: General
Disclosures 2021
2-21 Annual total compensation ratio
Description of the working practices
of the management board and the
supervisory board.
Compensation Report
https://about.puma.com/en/investor-
relations/corporate-governance
254
2-22 Statement on sustainable
development strategy
CEO Letter; Foreword
5, 31
2-23 Policy commitments
https://about.puma.com/en/sustaina
bility/codes-policies-and-handbooks
2-24 Embedding policy commitments
PUMA's FOREVER. BETTER.
Sustainability Strategy; Human Rights
35, 53
2-25 Processes to remediate negative
impacts
Human Rights
67-78
2-26 Mechanisms for seeking advice
and raising concerns
Compliance management system
254
2-28 Membership associations
Stakeholder outreach
38-41
2-29 Approach to stakeholder
engagement
Stakeholder outreach
38-41
2-30 Collective bargaining
agreements
Human Rights at own entities
53
MATERIAL TOPICS
Location
Pages
3-1 Process to determine material
topics
Most material aspects
42-44
GRI 3: Material
Topics 2021
3-2 List of material topics
Most material aspects
42-44
ANTI-CORRUPTION
Location
Pages
3-3 Management of material topics
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
263
GRI 3: Material
Topics 2021
205-2 Communication and training
about anti-corruption policies and
procedures
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
263
PUMA Annual Report 2023
↗ Sustainability
201
TAX
Location
Pages
GRI 207: Tax 2019
207-1 Approach to tax
“WE PAY OUR FAIR SHARE” is the
core principle the PUMA Group is
taking into consideration for its global
tax strategy. In this regard, PUMA
fully commits to act in accordance
with all international tax regulations
and to fulfill any tax obligations
arising from its business activities.
All information regarding PUMA’s tax
approach can be found in the tax
strategy
(https://about.puma.com/en/investor-
relations/corporate-governance, see
Tax Strategy)
As it is a general principle for PUMA
to follow tax rules and to pay
applicable taxes, taxes as such are
not a material issue within the
sustainability approach.
Consequently, PUMA does not report
in detail on the GRI Standard in this
regard.
MATERIALS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Recycled material usage; Material
origin
157, 173
GRI 301: Materials
2016
301-1 Materials used by weight or
volume
Recycled material usage; Material
consumption data
157, 173
301-2 Recycled input materials used
Recycled material usage
157, 173
ENERGY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Climate
104
GRI 302: Energy
2016
302-3 Energy intensity
Climate
104
PUMA Annual Report 2023
↗ Sustainability
202
WATER AND EFFLUENTS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Water and air
142
303-2 Management of water
discharge-related impacts
Water and air
142
303-5 Water consumption
Water and air
142
BIODIVERSITY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Biodiversity
177
GRI 304:
Biodiversity 2016
304-1 Operational sites owned,
leased, managed in, or adjacent to,
protected areas and areas of high
biodiversity value outside protected
areas
Biodiversity
177
EMISSIONS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Climate
104
305-1 Direct (Scope 1) GHG emissions Climate
104
305-2 Energy indirect (Scope 2) GHG
emissions
Climate
104
305-3 Other indirect (Scope 3) GHG
emissions
Climate
104
305-4 GHG emissions intensity
Climate
104
GRI 305: Emissions
2016
305-5 Reduction of GHG emissions
Climate
104
WASTE
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Circularity
156
306-1 Waste generation and
significant waste-related impacts
Circularity
156
GRI 306: Waste 2020 306-2 Management of significant
waste-related impacts
Circularity
156
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OCCUPATIONAL HEALTH AND SAFETY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Our people occupational health and
safety
22
403-2 Hazard identification, risk
assessment, and incident
investigation
Our people occupational health and
safety
22
403-9 Work-related injuries
Our people occupational health and
safety
22
DIVERSITY AND EQUAL OPPORTUNITY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
254
GRI 405: Diversity
and Equal
Opportunity 2016
405-1 Diversity of governance bodies
and employees
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
254
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 407: Freedom of
Association and
Collective
Bargaining 2016
407-1 Operations and suppliers in
which the right to freedom of
association and collective bargaining
may be at risk
Human Rights in the supply chain
55
FORCED OR COMPULSORY LABOR
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 409: Forced or
Compulsory Labor
2016
409-1 Operations and suppliers at
significant risk for incidents of forced
or compulsory labor
Human Rights in the supply chain
55
PUMA Annual Report 2023
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204
SUPPLIER SOCIAL ASSESSMENT
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 414: Supplier
Social Assessment
2016
414-1 New suppliers that were
screened using social criteria
Human Rights in the supply chain
55
414-2 Negative social impacts in the
supply chain and actions taken
Human Rights in the supply chain
55
PUMA Annual Report 2023
↗ Sustainability
205
KPMG ASSURANCE STATEMENT
To the PUMA SE, Herzogenaurach
We have performed a limited assurance engagement on the combined separate non-financial group report
of PUMA SE, Herzogenaurach (hereinafter: “company”), which was combined with the non-financial report
of the parent company for the period from January 1 to December 31, 2023 (hereinafter the “consolidated
non-financial report”). This consolidated non-financial report consists of the chapter “Sustainability”, the
section “Culture” in the chapter “Our People” and the sections “Compliance Management System” and
“Corporate Social Responsibility” in the chapter “Corporate Governance Statement in accordance with
Section 289f and Section 315d HGB” of the Annual Report 2023 of PUMA SE, Herzogenaurach.
Not subject of our assurance engagement was the material audit of the external sources of documentation,
interviews, case studies, expert opinions, the Environmental Profit & Loss figures as well as checking the
content of links to internet pages mentioned in the non-financial report (see Annex 1 to the assurance
report).
Responsibilities of Management
Management of PUMA SE, Herzogenaurach, is responsible for the preparation of the consolidated non-
financial report in accordance with Sections 315c in conjunction with 289c to 289e HGB and Article 8 of
REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of June 18, 2020 on
establishing a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088
(hereinafter the “EU Taxonomy Regulation”) and the Delegated Acts adopted thereunder, as well as for
making their own interpretation of the wording and terms contained in the EU Taxonomy Regulation and the
delegated acts adopted thereunder as set out in section “Reporting in accordance with the EU taxonomy
regulation” of the consolidated non-financial report.
This responsibility of the legal representatives of the company includes the selection and application of
appropriate non-financial reporting methods and making assumptions and estimates about individual non-
financial disclosures of the group that are reasonable in the circumstances. Furthermore, management is
responsible for such internal control as they consider necessary to enable the preparation of a consolidated
non-financial report that is free from material misstatement, whether due to fraud (manipulation of the
non-financial group report) or error.
The EU Taxonomy Regulation and the Delegated Acts issued thereunder contain wording and terms that are
still subject to considerable interpretation uncertainties and for which clarifications have not yet been
published in every case. Therefore, management has disclosed their interpretation of the EU Taxonomy
Regulation and the Delegated Acts adopted thereunder in section “Reporting in accordance with the EU
taxonomy regulation” of the consolidated non-financial report. They are responsible for the defensibility of
this interpretation. Due to the immanent risk that indeterminate legal terms may be interpreted differently,
the legal conformity of the interpretation is subject to uncertainties.
Independence and Quality Assurance of the Assurance Practitioner
We have complied with the independence and quality assurance requirements set out in the national legal
provisions and professional pronouncements, in particular the Professional Code for German Public
Auditors and Chartered Accountants (in Germany) and the IDW Standard on Quality Management 1:
Requirements for Quality Management in Audit Firms (IDW QMS 1 (09.2022)).
PUMA Annual Report 2023
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206
Responsibility of the Assurance Practitioner
Our responsibility is to express a conclusion with limited assurance on the consolidated non-financial report
based on our assurance engagement.
We conducted our assurance engagement in accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised): “Assurance Engagements other than Audits or Reviews of Historical
Financial Information” issued by the IAASB. This standard requires that we plan and perform the assurance
engagement to obtain limited assurance about whether any matters have come to our attention that cause
us to believe that the company’s consolidated non-financial report, other than the external sources of
documentation or expert opinions mentioned in the non-financial report, is not prepared, in all material
respects, in accordance with Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy
Regulation and the Delegated Acts issued thereunder as well as the interpretation by management
disclosed in section “Reporting in accordance with the EU taxonomy regulation” of the consolidated non-
financial report.
In a limited assurance engagement, the procedures performed are less extensive than in a reasonable
assurance engagement, and accordingly, a substantially lower level of assurance is obtained. The selection
of the assurance procedures is subject to the professional judgment of the assurance practitioner.
In the course of our assurance engagement we have, among other things, performed the following
assurance procedures and other activities:
• Gain an understanding of the structure of the Group’s sustainability organisation and stakeholder
engagement.
• Inquiries of management and relevant employees involved in the preparation of the consolidated non-
financial report about the preparation process, about the internal control system related to this process,
and about disclosures in the non-financial report.
• A risk analysis, including media research, to identify relevant information on PUMA SE’s sustainability
performance in the reporting period.
• Identification of likely risks of material misstatement in the consolidated non-financial report.
• Analytical procedures on selected disclosures in the consolidated non-financial report.
• Inquiries of management and relevant employees that are responsible for determining disclosures about
concepts, due diligence processes, results and risks, performing internal control procedures and
consolidating disclosures in the preparation of the consolidated non-financial report.
• Inspection of selected internal and external documents.
• Analytical procedures for the evaluation of data and of the trends of quantitative disclosures as reported
at Group level by all sites.
• Evaluation of local data collection, validation and reporting processes as well as the reliability of
reported data based on a sample taken at nine suppliers (remote site visits) and two offices (on-site and
remote site visits).
• Assessment of the overall presentation of the disclosures.
• Inquiries of Group level personnel in order to understand the processes for identifying relevant economic
activities according to the EU Taxonomy Regulation.
• Evaluation of the process for the identification of taxonomy-eligible and taxonomy-aligned economic
activities and the corresponding disclosures in the consolidated non-financial report.
In determining the disclosures in accordance with Article 8 of the EU Taxonomy Regulation, management is
required to interpret undefined legal terms. Due to the immanent risk that undefined legal terms may be
interpreted differently, the legal conformity of their interpretation and, accordingly, our assurance
engagement thereon are subject to uncertainties.
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Assurance Opinion
Based on the assurance procedures performed and the evidence obtained, nothing has come to our
attention that causes us to believe that the consolidated non-financial report of PUMA SE, Herzogenaurach
for the period from January 1 to December 31, 2023 has not been prepared, in all material respects, in
accordance with Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy Regulation and
the Delegated Acts issued thereunder as well as the interpretation by management as disclosed in section
“Reporting in accordance with the EU taxonomy regulation” of the consolidated non-financial report.
We do not express an assurance opinion on the external sources of documentation, interviews, case studies,
expert opinions, Environmental Profit & Loss as well as content of links to internet pages mentioned in the
consolidated non-financial report (see Annex 1 to the assurance report).
Restriction of Use
This assurance report is solely addressed to the PUMA SE.
Our assignment for PUMA SE and professional liability is governed by the General Engagement Terms for
Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (German Public Auditors and Public Audit Firms)
(Allgemeine Auftragsbedingungen für Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) in the
version dated January 1, 2017 (Appendix 2). By reading and using the information contained in this assurance
report, each recipient confirms having taken note of provisions of the General Engagement Terms (including
the limitation of our liability for negligence to EUR 4 million as stipulated in No. 9) and accepts the validity of
the attached General Engagement Terms with respect to us.
Nuremberg, February 1st, 2024
KPMG AG
Wirtschaftsprüfungsgesellschaft
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COMBINED MANAGEMENT REPORT OF
PUMA SE FOR THE FINANCIAL YEAR 2023
Overview 2023
210
PUMA Group essential information
214
Commercial activities and organisational structure 214
Targets and strategy
215
Product development and design
217
Sourcing
220
Employees
222
Management system
225
Information regarding the non-financial report
227
Economic report
228
General economic conditions
228
Sales development
229
Results of operations
233
Development of the segments
237
Dividends
238
Net assets and financial position
239
Cash flow
242
Statement regarding the business development and
the overall situation of the Group
245
Comments on the Financial Statements of
PUMA SE in accordance with the German
Commercial Code (HGB)
247
Results of operations
247
Net assets
249
Financial position
250
Outlook
250
Combined Management Report: This report
combines the Management Report of the PUMA
Group and the Management Report of PUMA SE
Information concerning takeovers
251
Corporate governance statement in accordance
with section 289f and 315d HGB
254
Risk and Opportunity Report
255
Risk Management System
255
Risks
258
Opportunities
267
Overall Assessment of the Risk and Opportunity
Situation
268
Main Features of the Internal Control and Risk
Management System as it relates to the Group's
Accounting Process
268
Internal Control System
269
Outlook report
272
Global economy
272
Sporting goods industry
272
Outlook 2024
272
Investments
273
Foundation for Long-Term Growth
273
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Notes relating to forward-looking statements
This document contains statements about the future business development and strategic direction of the
Company. The forward-looking statements are based on management's current expectations 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 combined 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 developments. We therefore assume no liability for the accuracy of
these forecasts.
┌
These sections contain content or cross-references not required by law, which were not audited by the
auditor, but were merely read critically. In the case of cross-references, the information to which the cross-
references refer was also not audited.
└
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OVERVIEW 2023
┌
In 2023, we celebrated PUMA’s 75th anniversary with events around the world which highlighted our proud
history with our employees and our brand ambassadors. PUMA’s founder Rudolf Dassler had the vision of
making products that would provide athletes with the agility and speed of a puma and through this vision,
PUMA has left a firm mark on sports and culture since 1948.
Even though we faced many global uncertainties during the year, PUMA was able to sustain its strong brand
momentum as we launched significant new products and initiatives.
In Teamsport, the Women's World Cup in Australia and New Zealand was an important moment to
emphasize our commitment to women’s football and to demonstrate our leading product offer for women:
PUMA is the only sports brand to offer all boots in women’s specific fits. On pitch, PUMA supplied more than
100 players and the fact that more than 90% of them chose our women’s fit shows that there is a real
demand for these products.
We introduced new versions of the successful boots ULTRA and FUTURE and redesigned the KING without
kangaroo leather. Instead, PUMA uses K-BETTER, a completely new, vegan material for the upper which
contains at least 20% recycled material. K-BETTER has proven to outperform the previous versions of the
KING in testing for touch, comfort, and durability. The performance characteristics of K-BETTER were so
convincing that PUMA committed to stop producing football boots with kangaroo leather altogether in 2023
as the first company in the industry.
In club football, PUMA team Manchester City won the treble for the first time in its history: the UEFA
Champions League, the Premier League and the FA CUP, showcasing that it’s currently the best football
team in the world. Manchester City was also the first team in PUMA’s history to win the Treble.
Many PUMA teams were among the best in their respective countries: In Germany, Borussia Dortmund was
a close runner up in the Bundesliga, in France, RC Lens and Olympique de Marseille finished second and
third in Ligue 1, in Sweden, Malmö FF won the Allsvenskan and in the Netherlands, PSV Eindhoven once
again won the KNVB Cup. Elsewhere, the young talents of PUMA team Uruguay became world champions at
the FIFA U-20 World Cup in Argentina.
To extend our global reach in football, we signed agreements with South American football federation
CONMEBOL and the African football federation CAF. As part of these agreements, PUMA will become very
visible during the tournaments organised by these federations, for example by supplying the official match
ball, equipping referees and officials and also conducting exciting marketing campaigns which will engage
with football fans on these continents.
On the players’ side, PUMA welcomed some of the most inspirational talents of their generation as brand
ambassadors in 2023 such as Kai Havertz, the Arsenal and Germany midfielder, Jack Grealish, the
Manchester City and England playmaker, and Xavi Simons, the RB Leipzig and Netherlands midfielder.
In track and field, the World Athletics Championships in Budapest were an immense success for us, as
PUMA-sponsored athletes won 22 medals, including six gold medals, twice the medal count achieved in
Eugene in 2022. PUMA athletes also won 17 medals at the European Indoor Championships in Istanbul.
Armand “Mondo” Duplantis once again set a new pole vault world record of 6 meters 23. For his outstanding
performances, Mondo was named Male Athlete of the Year 2023 – the third time he received this award in
four years’ time. At the World Para Athletics Championships in Paris, PUMA athletes took 13 medals, with
Cuban sprinter Omara Durand adding to her status as one of the most successful para-athletes of her
generation with three gold medals.
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We built on our impressive portfolio of brand ambassadors by welcoming Marcell Jacobs, the current
Olympic 100 m Champion, and Julien Alfred, the current NCAA 100m Champion to the PUMA Family.
In our Running category, we continued to focus on establishing our NITRO™ foam technology in the market.
With our supercritical NITRO™ foam, PUMA has one of the best foams in the industry and we are fully
determined to become a sought-after brand in road running. We continue to see a strong growth trajectory
in our third year after the launch of our first NITRO™ running shoes and further underlined our credibility
with signings of new running ambassadors: European 5,000 m Champion Konstanze Klosterhalfen,
marathon legend Edna Kiplagat and European marathon Champion Aleksandra Lisowska.
In basketball, we introduced the third signature shoe for PUMA Hoops ambassador LaMelo Ball, the MB.03,
following the tremendous success of his first signature products. The MB.03 launched in several colours,
including a version inspired by the popular cartoon series Dexter’s Laboratory.
PUMA teamed up with NBA rookie and the 3rd NBA Draft Pick Scoot Henderson to present the new All-Pro
NITRO™, PUMA’s newest basketball silhouette, which features our NITRO™ foam technology. Later in the year,
Scoot became the youngest player ever to receive his own signature shoe, the Scoot Zeros. Breanna Stewart,
our WNBA ambassador, introduced several versions of her signature shoe Stewie 2 throughout the year.
Our athletes also achieved tremendous success on court, as Breanna Stewart became the most valuable
player for the WNBA for the second time and Dennis Schröder became the MVP of the tournament at the
Basketball World Championships in Southeast Asia, when he led Germany to its first title.
After the strong success of PUMA in basketball over the past years, we decided to broaden our reach and
further strengthen our connection to the younger consumers. Partnering with NXTPRO gives PUMA access
to one of the top 3 Amateur Basketball circuits with 15,000 players.
In golf, we introduced the AEROJET family of clubs, which feature a raised skirt, symmetrical shaping and
streamlined edges. Designed to achieve new levels of speed not believed to be possible until now, the
AEROJET was named best driver for distance by Golf Monthly.
To underscore our credibility in this sport, PUMA ambassador Rickie Fowler captured his sixth PGA Tour
victory at the Rocket Mortgage Classic in Detroit, while Patricia Isabel Schmidt secured her maiden
European Tour win at the Belgian Ladies Open.
PUMA further added to its dominant position in motorsport by signing a landmark agreement with Formula
1 to become the sport’s official licensing partner and exclusive trackside retailer. While PUMA will equip F1
officials and our subsidiary stichd will operate the fan retail stores during race weekends, we will also
produce exciting collections for the growing number of F1 fans around the world.
The PUMA x F1 collections will be designed by A$AP Rocky, whom PUMA presented as the creative director
for F1 in a game changing announcement. As one of the biggest cultural influencers of his day, A$AP has the
vision and the talent to really provide a new perspective on this category. The first successful capsule
collection was launched during the Las Vegas Grand Prix with many more products to come in 2024 and
beyond. The extension of PUMA’s long-term partnership with Ferrari and a new contract with Williams
Racing further increased our dominance in motorsport.
In Sportstyle, global superstar Rihanna returned to PUMA in 2023 and the first joint product of the FENTY x
PUMA collection, the Avanti, created a huge buzz and sold out on PUMA.com immediately. At the end of the
year, she followed up on the Avanti with the launch of the Creeper Phatty, a remake of the plateau style she
pioneered during her first collaboration with PUMA, which was named “Shoe of the Year” by Footwear News
in 2016.
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PUMA’s Sportstyle offering also benefited from our strong take on the terrace trend. We reintroduced our
classics Palermo and Super Team to the market and saw strong demand for the first drops. To mark 50
years of hip-hop, PUMA took a journey through time with the iconic Suede, and we created several versions
which showed how hip-hop evolved and left its unmistakable impact on culture. On time with the ongoing
skate trend in the market, we also launched the all-new Suede XL at the end of the year.
With styles such as the CA Pro, Slipstream and Doublecourt, we continued to have the right proposition for
the ongoing demand for white court shoes, with our RS-X and the Velophasis we further built on our
Progressive Running offer and with our Mayze we continued to excite our female consumers.
Our Sportstyle offer was complemented by several successful Select collaborations with partners such as
Noah, Palomo Spain and Rhuigi.
└
In financial year 2023, PUMA found itself in an increasingly difficult geopolitical and macroeconomic
environment. The conflict in the Middle East, the war in Ukraine, persistent inflation and risks of recession
had a negative impact on the consumer sentiment and led to volatile retail demand. For this reason, the
Management saw 2023 as a transitional year in which PUMA focused entirely on the factors that could be
directly influenced. The main focus was on operational flexibility, the normalisation of inventories and
ongoing cost discipline. The purpose of this was to overcome the short-term challenges without
compromising the medium and long-term success of PUMA. In this respect, sales growth and increasing
market shares took priority over short-term profitability optimisation.
Despite the difficult market environment, PUMA was able to further increase its sales and set a new sales
record in financial year 2023, based on continued strong brand momentum, exciting product launches,
strong partnerships in all areas of the value chain and a focus on flexibility in operating activities. Currency-
adjusted sales increased by 6.6%. Due to strong negative currency effects this corresponds to an increase in
sales in the reporting currency, the euro, of 1.6% from € 8,465 million in the previous year to € 8,602 million
in 2023. The positive sales development was achieved despite the significant devaluation of the Argentine
peso and was therefore largely in line with the outlook of currency-adjusted sales growth in the high single-
digit percentage range.
Unfavourable currency effects, industry-wide sales promotion measures and fluctuating sourcing prices
and freight costs had a negative impact on the gross profit margin in 2023. These negative effects were more
than offset by price adjustments and a favourable regional and distribution channel mix. Overall, this led to
an improvement in the gross profit margin from 46.1% in the previous year to 46.3% in 2023. The net
expenditure of other operating income and expenses increased by a total of 3.3% in financial year 2023 to
€ 3,403 million (from € 3,296 million in the previous year). The increase was mainly due to higher sales-
related distribution and other variable costs, the strong growth in our direct-to-consumer sales and higher
marketing investments. This development was partially offset by operational leverage in other cost areas
and favourable exchange rate effects. Due to the continued cost control, the cost ratio increased only from
38.9% in the previous year to 39.6% in 2023.
Despite the sales growth and the improvement in the gross profit margin, the slight increase in the cost
ratio during the past financial year led to a slight decline in operating result (EBIT) of 3.0% to € 621.6 million
(from € 640.6 million in the previous year). Despite the significant devaluation of the Argentine peso,
operating result was therefore well within the € 590 million to € 670 million range. However, the EBIT
margin fell from 7.6% in the previous year to 7.2% in 2023. The devaluation of the Argentine peso had a
particularly negative effect on the financial result. Because of this, consolidated net income amounted to
€ 304.9 million compared to € 353.5 million in the previous year. This corresponds to a decrease of 13.7%.
Earnings per share therefore decreased from € 2.36 in the previous year to € 2.03.
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The positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose
the distribution of a dividend of € 0.82 per share for the financial year 2023 at the Annual General Meeting on
22 May 2024. This corresponds to a payout ratio of 40.3% of consolidated net income according to IFRS. The
higher payout ratio results from the strong improvement in free cash flow and reflects the underlying
positive operating business development. In general, PUMA's dividend policy continues to provide for a
payout of 25% to 35% of consolidated net income. In the previous year, a dividend of € 0.82 per share was
paid out (payout ratio for previous year: 34.7%).
The PUMA share had a negative performance in financial year 2023. Based on the share price at the end of
the previous year, the PUMA share started 2023 at a price of € 56.70. In the following twelve months, the
price of the PUMA share ranged between € 67.22 (February 2023) and € 44.36 (May 2023). At the end of 2023,
the price of the PUMA share was € 50.52, which represents a decline of 10.8% compared to the previous
year. The market capitalisation of the PUMA Group amounted to around € 7.6 billion at year-end 2023
(previous year: € 8.5 billion).
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PUMA GROUP ESSENTIAL INFORMATION
COMMERCIAL ACTIVITIES AND ORGANISATIONAL STRUCTURE
PUMA SE operates as a European stock corporation with Group headquarters in Herzogenaurach, Germany.
In the internal reporting, our business activities are mapped according to three major regions (EMEA, the
Americas and Asia/Pacific) and three product divisions (footwear, apparel and accessories). In addition, we
consider seven segments for internal management purposes, as shown in the segment reporting.
Our revenues are derived in particular from the sale of products from the PUMA and Cobra Golf brands via
the wholesale and retail trade, as well as from sales directly to consumers in our own retail stores and
online stores. We market and distribute our products worldwide primarily via our own subsidiaries. There
are distribution agreements in place with independent distributors in a small number of countries.
As of 31 December 2023, 99 subsidiaries were controlled directly or indirectly by PUMA SE. Our subsidiaries
carry out various tasks at the local level, such as distribution, marketing, product development, sourcing
and administration. A full list of all subsidiaries can be found in chapter 2 of the Notes to the Consolidated
Financial Statements (in the subsection "Group of consolidated companies").
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TARGETS AND STRATEGY
PUMA started 2023 by sharpening its strategic priorities.
↗ G.01 STRATEGIC PRIORITIES
Our strategic framework consists of a triangle: Elevate the Brand, Increase Product Excellence, and
Improve Distribution Quality. Within this context, we placed a special emphasis on implementing this
strategic framework in the US and China – two key countries where our current market shares are
significantly too low. The strategic framework triangle is based on our three foundational pillars of focusing
on people first, evolving sustainability and digitalizing PUMA’s infrastructure.
┌
By elevating the brand, we want to anchor PUMA more deeply in the hearts and minds of customers, to
become more consumer centric and to focus our investments on fewer Tier 1 ambassadors with a bigger
reach. Finally, we will also improve our focus and engage with consumers with fewer, bigger and better
brand and product campaigns going forward.
With our rich history of having served athletes since 1948, our PUMA brand has some of the best logos in the
whole industry and a huge archive of the most iconic sport moments, athletes, and products in history. This
unmatchable DNA gives our product designers and marketeers a unique opportunity to tell our brand and
product stories with the authenticity and credibility of a true sports brand.
We continuously focus on enhancing our product excellence and we put innovation and quality at the heart
of our designs. All PUMA products will have 100% sports DNA. While we celebrate the sports roots of our
shoes on the Sportstyle side, we push for new innovations on the performance side to make our athletes
even faster. We keep on leveraging our NITRO™ foam technology in our key running styles Deviate, Velocity
and ForeverRun and are continuously evolving to improve the cushioning, responsiveness and weight of our
shoes. We are also continuously evolving our three strong football footwear franchises FUTURE, ULTRA and
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KING, which is reflected in our ongoing market share gains in this highly competitive market. Finally, we
also introduced the All-Pro, which we believe is one of the best basketball shoes in the industry and we will
continue to evolve our All-Pro proposition going forward.
PUMA is continuously improving the quality of its distribution in wholesale. Our retail partners are our key
priority as we believe that the consumers enjoy a multi-branded retail environment to make the best
product choices. To cater to the requirements of our retail partners and to build long-term partnerships
with them, we provide our retail partners with the best and fastest service in the industry. PUMA continues
to pursue its direct-to-consumer business as a complementary offering in its distribution strategy to realize
the roles which our retail partners cannot fulfil, namely brand storytelling.
└
In the United States, we see significant opportunities to enhance our market share in the world’s biggest
sports market. To achieve this, we need to position ourselves as a credible performance brand. Our
initiatives in basketball, motorsport and even football - as our new partner CONMEBOL will host the next
Copa America in the US – will all contribute to this target. With our roster of athletes including LaMelo Ball,
Scoot Henderson, and Breanna Stewart in basketball and Christian Pulisic in football, we have the right
brand ambassadors in place to connect with our target audiences in a credible manner. Furthermore, we’re
also focussing on creating more US-first products, improving our distribution quality in the US and
strengthening our local US organisation.
Next to the United States, we see significant opportunities to enhance our market shares in China, the
world’s most dynamic sports market. PUMA also has a clear strategy in place when it comes to our rebound
in the Chinese market. We want to position PUMA as a global sports brand in China, leverage our local-for-
local resources both in terms of design and sourcing to deliver the right product to the Chinese consumer,
improve our distribution quality in this digital-first market and strengthen our local China organisation.
Putting our people first is an important part of our corporate strategy. PUMA’s working culture is
characterised by diversity, inclusion, and equality, as our employees have many different nationalities and
backgrounds. We believe this diversity to be one of our key strengths and we were thrilled to be named a
global Top Employer in 2023. Our commitment to equality was rewarded when an independent agency
certified that we had closed the adjusted pay gap between women and men among our employees in
Germany. We will continue to work hard to provide our employees with an inspiring place to work which
reflects our values.
The aim of our FOREVER.BETTER. sustainability strategy is to fully integrate sustainability into all our core
business functions. By 2025, we want to make nine out of ten products with materials such as certified
cotton and viscose or recycled polyester. We also want to become more circular.
With our RE:SUEDE project, we showed in 2023 how we can successfully turn an experimental version of our
classic Suede sneaker into compost under certain tailor-made industrial conditions. Going forward, we will
continue to innovate with our partners to determine the infrastructure and technologies needed to make the
process viable for a commercial version of the RE:SUEDE, including a takeback scheme.
To reach younger audiences with our sustainability strategy, we started our “Voices of a RE:GENERATION”
initiative. The Voices, who are GEN-Z activists and environmentalists, regularly join PUMA to give our senior
management feedback on how we can further strengthen our sustainability strategy. The voices also visited
the factories of our partners in Asia and Turkey and helped us communicate with younger audiences
throughout the year. We believe that new ways of communication like this and transparency are essential for
the journey towards a more sustainable world.
To operate efficiently and to keep up with our growth momentum, we constantly improve our infrastructure
and processes. This includes investments in our IT systems, distribution centres and offices around the world.
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PRODUCT DEVELOPMENT AND DESIGN
Enhancing the excellence of our products is one of PUMA’s strategic priorities. In order to accomplish this,
we will focus on five key measures: authentic sports DNA across all our products, design and innovation
excellence, focus on clear must-win priorities, creating product franchises as a brand, and a global-local
(“glocal”) product creation approach.
┌
As a sports company, PUMA has 75 years of history and sports authenticity, created by writing history
alongside the world’s fastest athletes. All PUMA products will have 100% sports DNA. While we celebrate
the sport roots of our products and rich archive on the non-performance side, we push for new innovations
on the performance side.
└
In addition to the clear sports DNA of our products, we also place a special emphasis on design and
innovation across all our categories. We have a strong pipeline of innovations across all our performance
categories both on the footwear and apparel side. We have the clear ambition to make the fastest products
for the fastest athletes and our innovative technologies such as NITRO™ will ensure that we live up to this
ambition.
┌
Also on the design side, PUMA has a rich history of firsts and bests. We built on our legacy in 2023 by
relaunching the Avanti with global icon Rihanna, a style which is based on the sneaker through which PUMA
revolutionised the category in the 1990s. The Avanti is a perfect example of how we leverage our rich archive
of iconic silhouettes while ensuring cutting-edge and on-trend design in the here and now.
To sharpen our focus, we decided to implement fewer, bigger and better product stories and we defined four
clear must-win priorities that we will focus on: classics, sports culture, our NITRO™ technology and
creating the best product offer for women.
Classics are one of PUMA’s biggest asset, given our rich history and our vast archive, which continues to
inspire our designers today. PUMA was already an established brand when football transformed to terrace,
skate became streetwear and when fashion embraced low profile styles. This means that PUMA has
genuine credibility to respond to the return of such trends.
Through its archive and history, PUMA will continue to incubate new trends, such as low profile, and
capitalise on existing trends such as the prevalent terrace and skate trends.
For PUMA, sports culture is about more than the game, as the influence of sport can be felt long after the
final whistle or the chequered flag. In Football, the terrace trend first started in the football stadiums of the
1980s and made its way into fashion and streetwear.
Basketball also has a direct impact on culture and streetwear, for example when the players make strong
fashion statements on their way into the venue of the game, or when celebrities show of their style as they
sit courtside.
Few players embody this spirit and cultural influence like our ambassador LaMelo Ball, with whom we will
continue to work on his range of signature shoes which blend performance and style.
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In Motorsport, some of the biggest names in sports, film and music regularly attend Formula 1 races and
can be seen in the pits on race weekends. By hosting races across the planet and popular documentaries
featuring the sport, F1’s global viewership has skyrocketed in recent years and the audience has become
more female and diverse, further increasing its influence on culture. With our strong legacy and authenticity
in motorsport, we’re well positioned to capitalise on this growing cultural influence and create relevant F1-
inspired streetwear. We already showcased this approach when we released a bespoke capsule collection
with A$AP Rocky, our creative director for the PUMA X F1 partnership, during the Las Vegas Grand Prix.
NITRO™, one of the best foam technologies in the industry, is at the core of our successful return to
performance running and we will continue to invest significant resources into these performance products.
PUMA has a long-term vision for the running category, with a pipeline of innovations going beyond the next
four or five years.
NITRO™ foam maximizes responsiveness and cushioning while being extremely lightweight, and while it
was created as part of our performance running line up, it is also used in other categories, for example in
basketball.
PUMA has set up state of the art testing facilities in Germany and the US for our elite athletes, called
NITRO™ LAB, which can gather full-body insights to develop bespoke and customised products, so they can
perform at their best.
NITRO™ is used in our award-winning running styles Deviate, Velocity and the latest addition ForeverRun.
With these three styles, we have a clear product proposition for our consumers.
Women have been a priority for PUMA for many years, and we are doubling down on our commitment to
make the best products for her, whether it is female-specific fits for our footwear or other products
specifically catering to the needs of women.
We take her serious throughout our performance categories, for example in football, where following two
years of research, PUMA is the only sports brand to offer all football boots in fits that are specifically
developed for female feet, with a lower volume in the midfoot and a smaller instep compared to unisex
sizes. More than 90% of PUMA’s professional female players choose their boots in women’s specific fits,
which shows the real demand for such products.
└
While PUMA is not afraid to combine performance and non-performance, our goal is not to be a fashion
brand but make sports on trend.
We will continue to create products for her and communicate to our female consumers through campaigns
with our global ambassadors such as Rihanna and Dua Lipa, and Pamela Reif.
Another clear area of product excellence is to create franchises as brands with well-defined consumer
benefits such as Deviate, Velocity and ForeverRun in running, FUTURE, ULTRA, and KING in football as well
as All-Pro and MB in basketball. In non-performance categories, we also see the opportunity to establish
strong product franchises such as Suede, and Palermo on the Classics side or RS-X and Mostro on the
Progressive side. Going forward, we will continue to focus on these key products and ensure a long-term
strategy across all our categories.
We have set up local creation centres in major markets such as the US, Europe, China, India, or Japan so
they can design the products that best resonate with local consumers and we are active in regionally
relevant sports such as cricket, handball, rugby, or netball. We believe that this glocal approach to product
creation combining global Business Units and local creation centres ensures the perfect balance of global
reach and consistency and local relevance of our products.
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Research and product development at PUMA mainly comprise the areas of innovation (new technologies),
product design and model and collection development. The research and product development activities
range from the analysis of scientific studies and customer surveys through the generation of creative ideas
to the implementation of innovations in commercial products. The activities in research and product
development are directly linked to sourcing activities.
As of 31 December 2023, a total of 1,406 people were employed in research and development/ product
management (previous year: 1,307). In 2023, research and development/ product management expenses
totalled € 171.5 million (previous year: € 153.1 million), of which € 89.0 million (previous year: € 82.2 million)
related to research and development.
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SOURCING
THE SOURCING ORGANISATION
PUMA Group’s sourcing functions, referred to as PUMA Group Sourcing (PGS), manages all sourcing related
activities for PUMA and Cobra, including supplier selection, product development, price negotiation and
production control. These activities are centrally managed by PUMA International Trading GmbH (PIT), the
group’s global trading entity, with its head office in the Corporate headquarters in Herzogenaurach
(Germany). In addition, PIT is responsible for procurement and supply into the PUMA distribution channels
worldwide. PIT receives volume forecasts from PUMA subsidiaries and licensees worldwide, translates
these forecasts into production plans which are subsequently distributed to the third-party vendors. The
PUMA subsidiaries confirm their forecasts into purchase orders to PIT, which in turn consolidates these
requirements and purchases from the vendors. There is a clear buy/sell relationship between the sales-
subsidiaries and PIT and between PIT and the vendors, for added transparency.
The centralisation of the sourcing and procurement functions supported by a cloud-based purchase order
management and payment platform has enabled the digitalisation of the supply chain creating
transparency, operational efficiency and reducing complexity. For example, container fill rates are
optimised, foreign currency risks are managed by PIT directly via a centralised currency hedging policy, and
all payments to vendors are automated and paper free.
To meet the needs of our customers in terms of service, quality, social and environmental sustainability, we
focus on six core strategic pillars: partnership, product quality, growth management, margins, acquisition
costs and sustainability. The integration of PUMA's sustainability function into the sourcing organisation
ensures that industry standards, including social, environmental, chemical safety, as well as product
compliance are closely integrated with all our sourcing activities.
Another key aspect in our sourcing setup since 2016 has been the PUMA Forever Better Vendor Financing
Program. The program allows suppliers to be paid earlier. The International Finance Corporation (IFC),
banking group BNP Paribas, HSBC and Standard Chartered offer attractive financing terms to our suppliers,
allowing them to maintain their own lines of credit.
In 2023, no sourcing countries experienced material COVID restrictions. The lifting of restrictions enabled
full normalisation of the supply chain to pre-pandemic levels.
High inflation, fluctuating raw material cost and freight cost impacted the company's operations. In view of
the global macroeconomic situation, which has led to a change in customers' ordering behavior and
increased inventory levels resulted in a need for more cautious procurement from our suppliers. Hence, we
actively adjusted sourcing activities respectively and continued to provide transparency to our sourcing
partners so they can adjust their capacities accordingly. Despite these challenges, we remained committed
to delivering value to our stakeholders and implemented strategies to mitigate the adverse effects of the
prevailing market conditions. Together with sustained demand for PUMA products in 2023 this led to a
further normalisation of PUMA inventory levels, in line with expectations.
Our supplier partners form an integral part of the PUMA business. To recognise our suppliers, we organised
a Supplier Summit in June 2023 at PUMA Headquarters in Herzogenaurach, bringing them together across
all divisions for the first time in over six years. During the Summit, we shared recent and upcoming
business developments and expressed gratitude for their partnership with PUMA.
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THE SOURCING MARKETS
During the financial year 2023, PIT purchased from 158 independent suppliers (previous year: 141) in 29
countries worldwide. The strategic cooperation with long-term partners continues to be one of our key
competitive advantages and was crucial in navigating through ongoing supply chain challenges of 2023.
Asia is the strongest sourcing region overall with 95% of the total volume, followed by the Americas with 3%
and EMEA with 2% (thereof Europe with 1% and Africa with 1%).
As a result, the six most important sourcing countries (94% of the total volume) are all located in the Asian
continent. China is the biggest production country in 2023 with a total of 32%. While the absolute volumes in
China for apparel have decreased, it was further strengthened as a strategic origin for footwear in 2023.
Vietnam – a key development and sourcing hub for all three divisions – is the second biggest production
country with 30%. Cambodia is in third place at 13%, Bangladesh, which focusses on apparel, is in fourth
place at 12%. Indonesia, with an initial focus on footwear production and increasing volumes for apparel,
produces 4% of the total volume and is in fifth place. India – only serving the local market - is in sixth place
at 3%. In the growth market of India, we see ourselves in a good competitive position due to local sourcing
and are therefore also able to limit the impact of the government's protectionist measures on our business.
Rising wage costs, fluctuating material prices, macroeconomic developments and evolving sustainability
regulations, have continued to influence sourcing markets in 2023. Such impacts need to be considered in
allocating the production to ensure a secure, sustainable, and competitive sourcing of products. In this
regard sourcing continues to extend its local supply chain initiatives for markets such as China, India, Latin
America, Türkye and others. Our sourcing activities resumed with business travel to key sourcing markets
in order to visit our existing partners but also evaluate new vendors and opportunities in sourcing countries
such as Indonesia.
↗ G.02 SOURCING REGIONS OF PUMA (in %)
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EMPLOYEES
NUMBER OF EMPLOYEES
The global number of employees on a yearly average was 18,023 in 2023, compared to 16,669 in the previous
year. Personnel expenses increased by a total of 6.4% from € 846.5 million to € 900.6 million in 2023. On
average, personnel expenses per employee amounted to € 50.0 thousand, compared to € 50.8 thousand in
the previous year.
↗ G.03 CHANGES IN EMPLOYEES (annual average / year-end)
As of 31 December 2023, the number of employees was 18,681, compared to 18,071 in the previous year. This
corresponds to an overall increase in the number of employees of 3.4% compared to the previous year. The
development in the number of employees per area is as follows:
↗ G.04 EMPLOYEES (year-end)
13,348
13,016
14,846
16,669
18,023
14,332
14,374
16,125
18,071
18,681
2019
2020
2021
2022
2023
Employees (annual average)
Employees (year-end)
13,343
1,307
3,421
13,647
1,406
3,628
Marketing / retail / sales
Research & development / product
management
Administration and general units
2022
2023
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TALENT RECRUITMENT AND DEVELOPMENT
┌
Our PUMA family is the key to our success. Our human resources strategy forms the basis of our unique
working environment and corporate culture. These help us to attract the best talent worldwide and secure
the future success of the company. The three core elements of this strategy are "People First", sustainable
human resources practices and digitalisation.
People First means understanding employees' needs, values, and potential and putting them at the centre
of our decision making. It helps us create an inclusive culture that respects diversity, promotes health and
well-being, and encourages personal and professional growth.
Sustainable people practises create a workplace culture that prioritises employee health and happiness,
diversity, and inclusivity, and offers ample opportunities for career growth. Our sustainable people practices
are central to building a resilient organisation. By thinking ahead and equipping our employees with the
future skills and leadership qualities necessary, we ensure the long-term success of PUMA.
Digital tools in Human Resources improve the work experience of our employees and help us stay
competitive and agile in a fast-changing business landscape. By using digital technology, we are improving
efficiency, data-driven decision-making, and candidate and employee experiences. We deploy easy-to-use
digital tools that enhance collaboration and productivity and offer digital literacy programmes to ensure all
employees are equipped to thrive in a digital environment.
└
To attract external applicants, we use digital platforms and social media in addition to our careers website
in order to pursue proactive recruitment strategies that are tailored to our specific target groups. Having a
range of on-site and online initiatives at universities both in Germany and abroad creates opportunities to
approach potential employees and identify suitable candidates. Our extensive networks and applicant pools
enable us to fill vacancies quickly. In a competitive labour market, it's essential for us not only to present
ourselves as an attractive employer, but to be viewed as such by our current and potential employees.
PUMA's attractiveness is evidenced by its top rankings as an employer and numerous awards. We are very
proud that 24 of our PUMA subsidiaries across the regions (Europe, APAC, LATAM and North America) won a
coveted Top Employer award in the year under review in recognition of our outstanding corporate culture
and working environment. We can therefore continue to call ourselves a "Global Top Employer". We were
also named one of the "World's Best Employers" by Forbes and a "Leader in Diversity" by the Financial
Times, and awarded the "Great Place to Work" seal in numerous countries.
┌
In 2023 we continued to work on simplifying, accelerating and harmonising our business processes
worldwide, and intensified the digitalisation of our processes. We have been using the "Workday" software
solution for a wide range of HR workflows since 2017. This gives our employees and managers the processes
and tools they need to make everyday human resources management efficient. Furthermore, easy-to-use
dashboards provide managers with important information and data-driven insights that are essential to
their planning work and managerial duties. Analysing our centralised, globally available data provides a
solid foundation for making strategic decisions and delivers measurable results. Our objective is to use this
digitalised infrastructure to increase operational efficiency and continuously improve our HR practices
throughout the employee life cycle at PUMA. This in turn facilitates PUMA's overarching goal of optimising
workflows and employees' experiences. It also gives us the means to deal more effectively with the
dynamics of demanding labour markets.
We empower our employees to shape their own career paths proactively and independently, promoting their
professional development both within Germany and internationally. This is how we succeed in inspiring their
loyalty to the company in the long term. As part of our talent management initiative, we use Workday not
only to assess performance and set targets, but also to make systematic and forward-looking succession
plans for key positions. We identify talent within the company during annual performance reviews and global
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talent conferences, and foster their development through tailored development plans. This approach to
talent management opens up attractive career and development opportunities for our employees. As in the
previous financial year, this year we were again able to fill the majority of key positions worldwide via
internal promotions or horizontal moves, which confirms that our talent management and employee
development strategy is solid.
The ongoing personal and professional development of our employees is crucial to ensuring that our team
has the skills they need to guarantee us continuous growth and market competence, particularly in times of
great uncertainty and change. Workday helps us to avoid skills shortages and maintain a clear overview of
the existing competencies in our team. In 2023 we examined this issue more closely, delving deeper in
particular into the competencies that we will need in the future. The insights we gained from this deep dive
are essential for us in terms of strategic human resources planning. They form the basis for our
recruitment activities and for the development of new training programmes.
The range of training that we provide includes a number of online and offline training courses and
workshops, which are either standardised or tailored to individual needs. With "LinkedIn Learning" and "Good
Habitz", there are now over 23,000 different training courses available for our employees. They also have a
wide range of learning categories to choose from for self-directed personal and professional development.
Like last year, we focused particularly on the topics of mental well-being, resilience and mindfulness this
year, providing our employees with a wide range of services to best support them in dealing with the
increased mental strain that can often arise in this politically and economically difficult environment.
We have a proactive strategy for engaging learners. This includes putting on entertaining activities about
various topics, gamification and internal learning competitions, not to mention the quarterly Top Learner
Award for the most active learners worldwide. Thanks to this approach, PUMA was nominated for the
"eLearning Journal" Award 2024 in the "Learner Engagement" category. We further expanded the Digital
Agile Coach programmes that we offer to various target groups.
We have a global Busuu licence that provides access to 13 languages. This enables all our employees,
including retail staff, to learn new languages online in a flexible way that meets their needs. They are
supported by live lessons with qualified trainers. Learning is undertaken both via an app and in direct
contact with others. There is a particular focus on English, but Busuu also facilitates the learning of other
languages for personal or professional purposes.
With a range of dual-study programmes and apprenticeships, as well as study-related internships, we offer
adequate entry-level and development opportunities for talented individuals at all levels.
We offer our managers numerous training and development opportunities. All managers worldwide
complete our internal global leadership training programme, consisting of the ILP (International Leadership
Programme) and ILP² seminar series. The programme ensures a uniform understanding of leadership at
PUMA and promotes development among participants over the longer term. It offers intensive training and
coaching, including interactive learning, role play simulations, and best practice learning, as well as joint
projects. The key topics include coaching, mindful leadership, and agile working methods. The PUMA
Leadership Expedition training programme aims to empower our managers to lead effectively in the VUCA
world (VUCA is an acronym for volatile, uncertain, complex, and ambivalent). The programme is completely
virtual, easily accessible, and designed as a self-directed and tailor-made learning format. It includes self-
selected virtual training sessions with a trainer, regular communication with other international
participants in smaller working groups, and coached sessions, as well as individual learning sprints and
check-ins with the trainers. This innovative training programme received the eLearning AWARD 2023 in the
"Agile Learning" category.
Our training from employee to manager is intended to prepare employees who are taking on a management
position for the first time specifically for their new role. In addition to the training module, the programme
also offers individual coaching.
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Our "Speed Up" and "Speed Up²" development programmes are aimed at employees across different levels
of the organisation. These programmes help to fully prepare employees for the next stage of their career,
covering interdisciplinary projects and deployments, targeted training, mentoring, coaching and job
rotations. They are designed to actively promote selected top talent. Another essential aspect of these
programmes is increasing the visibility of participants through to the highest level of management,
promoting multi-disciplinary cooperation and developing a strong professional network.
Feedback from our employees is of the utmost importance to us. Our listening strategy comprises various
methods of receiving feedback and aims to capture and understand the opinions and needs of our workforce.
To gather their views and suggestions, we prepare questionnaires, regular short surveys, focus groups,
interviews and mood analyses, often using systems such as Amber and Workday. The resulting feedback
affirms our commitment to continuing and further developing the initiatives that have been launched.
Since 2009 we have been conducting regular global employee surveys to obtain feedback from our staff on a
variety of topics and to measure their engagement. A total of 15,339 employees took part in the global survey
we carried out in 2023 and took the opportunity to tell us what they think about their workplace and their
day-to-day work. This equates to a participation rate of 85% (2021: 86%). We saw an increase in positive
ratings in two categories. Four categories remained at their already high level and seven categories saw a
slight decline of 1% compared to the previous survey. We compare our survey results with various sets of
market data, including high-performance data that we surpass or are equal to in up to four categories.
High-performing companies are those that outperform the market in financial terms and regularly achieve
excellent employee survey results. This positive feedback encourages us to continue and strengthen the
measures we have already introduced. The survey results were communicated at global, local and
departmental level, and follow-up measures were defined.
WORKS COUNCIL
Our trust-based, constructive collaboration with the Works Councils is an important part of our corporate
culture. In 2023, the European Works Council of PUMA SE represented employees from 14 European
countries and had 18 members. The German Works Council of PUMA SE consisted of 17 members and
represented the employees of the PUMA Group in Germany. A designated member of the Works Council in
Germany represents the interests of employees with disabilities.
COMPENSATION
We at PUMA offer our employees a targeted and competitive compensation system, which consists of
several components. In addition to a fixed base salary, the PUMA bonus system, profit-sharing programmes,
and various social benefits form part of an attractive and performance-based compensation system. In
addition, we offer our employees comprehensive services in the areas of further development, employee
motivation, health management, and well-being. We also offer long-term incentive programmes for the
senior management level that honour the sustainable development and performance of the business. The
bonus system is transparent and globally standardised. Incentives are exclusively linked to company goals.
└
MANAGEMENT SYSTEM
We use a variety of indicators to manage our performance in relation to our top corporate goals. We have
defined growth and profitability as key targets within finance-related areas. Our focus therefore is on
improving our sales and operating result (EBIT). These are the most significant financial performance
indicators. Moreover, we aim to minimise working capital and improve free cash flow. Our Group's Planning
and Management System has been designed to provide a variety of instruments in order to assess current
business developments and derive future strategy and investment decisions. This involves the continuous
monitoring of key financial indicators within the PUMA Group and a monthly comparison with budget
targets. Any deviations from the targets are analysed in detail and appropriate countermeasures are taken
in the event such deviations have a negative impact.
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Changes in sales are also influenced by currency exchange effects. This is why we also state any changes
in sales in euros, the reporting currency, adjusted for currency exchange effects in order to provide
information that is relevant to the decision-making process when assessing the revenue position. Currency-
adjusted sales are used for comparison purposes and are based on the values that would arise if the foreign
currencies included in the consolidated financial statements were not converted at the average rates for the
previous year, but were instead translated at the corresponding average rates for the current year. In the
case of countries that are in a hyperinflationary environment, the previous year's amounts are not converted
at the reporting date rates of the previous year, but at those of the current reporting year. As a result,
currency-adjusted figures are not to be regarded as a substitute or as superior financial indicators, but
should instead always be regarded as additional information.
We use the indicator free cash flow in order to determine the change in cash and cash equivalents after
deducting all expenses incurred to maintain or expand the organic business of the PUMA Group. Free cash
flow is calculated from the cash flow from operating activities and investment activities. We also use the
indicator free cash flow before acquisitions, which goes beyond free cash flow and includes an adjustment
for incoming and outgoing payments that are associated with shareholdings.
We use the indicator working capital in order to assess the financial position. Working capital is essentially
the difference between current assets – including in particular inventories and trade receivables – and
current liabilities. Cash and cash equivalents, the positive and negative market values of derivative financial
instruments and current finance and lease liabilities are not included in working capital.
Besides the above mentioned significant indicators, sustainability and creating stakeholder value is an
important aspect of PUMA’s overall business performance. Acting in a responsible manner and continuously
improving PUMAs impacts on the environment and people are not only expected by our employees,
consumers and investors but also supports our financial performance. Since many years, and in line with
our current 10FOR25 sustainability strategy, we use several indicators to assess PUMA’s performance
against environmental and social criteria. Those indicators relate to climate action, human rights (including
occupational health and safety) as well as circularity and are part of the performance bonus of our
leadership team globally. Since a large portion of PUMAs impact on the environment and people is created
in our supply chain, we also include supply chain specific sustainability performance indicators in our
annual reporting. For further details, please refer to the sustainability section of this report and our
corporate website.
The calculation of the financial control parameters that PUMA uses is defined as follows:
The recognition of sales is based on the provisions of IFRS 15 Revenue from contracts with customers.
PUMA's gross profit is calculated as sales minus cost of sales. Cost of sales mainly comprise the carrying
amounts of inventory that were recognised as expenses during the reporting period. The gross profit margin
is calculated as gross profit divided by sales.
PUMA's operating result (EBIT) is the sum of sales and royalty and commission income, minus cost of sales
and other operating income and expenses (OPEX). EBIT is defined as operating result, less depreciation and
amortisation, provisions and impairment loss, before interest (= financial result) and before taxes. The
financial result includes interest income and interest expenses, currency conversion differences and the
effects from the net position of monetary items in connection with hyperinflation accounting. The EBIT
margin is calculated as EBIT divided by sales.
PUMA's working capital is calculated based on the sum of current assets less the sum of current liabilities.
In addition, cash and cash equivalents and positive and negative market values of derivative financial
instruments are deducted. The market values of derivative financial instruments are recognised in the
balance sheet in the items Other Current Assets and Other Current Liabilities not attributable to working
capital. Current financial and lease liabilities are also not part of working capital.
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We also use the EBITDA indicator, which represents the operating result before interest (= financial result),
taxes and depreciation and amortisation, to assess the results of operations. EBITDA is calculated based on
the operating result (EBIT) adding depreciation and amortisation, which may also contain any incurred im-
pairment expenses relating to non-current assets. The EBITDA margin is calculated as EBITDA divided by
sales.
INFORMATION REGARDING THE NON-FINANCIAL REPORT
In accordance with Sections 289b and 315b of the German Commercial Code (Handelsgesetzbuch – HGB),
we are required to make a non-financial declaration for PUMA SE and the PUMA Group within the combined
management report or present a non-financial report external to the combined management report, in
which we report on environmental, social and other non-financial aspects. PUMA has been publishing
sustainability reports since 2003 under the provisions of the Global Reporting Initiative (GRI) and since 2010
has published financial data and key sustainability indicators in a single report. In this context, we report the
information required under Sections 289b and 315b of the HGB in the sustainability chapter of our annual
report. The non-financial report for the financial year 2023 is published together with the combined
management report and can be accessed at the following location on our website:
https://about.PUMA.com/en/investor-relations/financial-reports
┌
Furthermore, important sustainability information can always be found in the sustainability section on
PUMA's website: http://about.PUMA.com/en/sustainability
└
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ECONOMIC REPORT
GENERAL ECONOMIC CONDITIONS
GLOBAL ECONOMY
According to the winter forecast of the Kiel Institute for the World Economy (Kiel Institut für Weltwirtschaft –
IfW Kiel) dated 13 December 2023, the global economy held up better than expected in view of the inflation
shock and the massive tightening of monetary policy in 2023, even if economic expansion was only
moderate. Industrial production and world trade remained without momentum until the end of the year. The
experts at IfW Kiel expect global gross domestic product (GDP) to have risen by a total of 3.1% for the past
financial year 2023. Major differences in economic momentum were recorded both in the advanced
economies and in the emerging markets. With regard to China, IfW Kiel experts note that, by historical
comparison, the pace of expansion is still low and that China has largely lost its role as the engine of global
economic expansion. In addition, accelerated inflation in Argentina and Turkey had a negative impact on
economic development.
SPORTING GOODS INDUSTRY
The sporting goods industry was faced with various challenges in 2023, which contributed to a difficult
market environment. This was mainly due to the sharp rise in inflation, which led to a corresponding
negative impact on consumer spending. In addition, excess inventory and sales-promoting measures were
unfavourable to industry development.
Major sporting events in 2023, such as the Athletics World Championships in Hungary and the FIFA Women's
World Cup in Australia and New Zealand, had a positive effect on the sporting goods industry. To our
knowledge, sporting activity and the pursuit of an increasingly healthy and sustainable lifestyle continued to
gain in importance for an ever-increasing proportion of the world's population, following the COVID-19
pandemic. Among other things, this resulted in the increased popularity of athletic footwear and
leisure/athletic apparel as an integral part of everyday fashion ("athleisure").
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SALES DEVELOPMENT
ILLUSTRATION OF SALES DEVELOPMENT IN 2023 COMPARED TO THE OUTLOOK
In its combined management report for 2022, PUMA forecast a currency-adjusted increase in sales in the
high single-digit percentage range for financial year 2023. Sales development was affected by the significant
devaluation of the Argentine peso and the associated translation effects at the closing rate, which had an
extraordinary impact in the fourth quarter and on the full-year 2023. Due to the extent and timing of these
currency effects, we were unable to fully compensate for the overall negative impact at the end of the year.
Nevertheless, sales development was largely in line with the outlook. More details on sales development in
the financial year 2023 are provided below.
SALES
PUMA's sales in the reporting currency, the euro, increased by 1.6% to € 8,601.7 million in the financial year
2023 (previous year: € 8,465.1 million). Currency-adjusted sales increased by 6.6%. This allowed PUMA to
achieve record sales of € 8.6 billion in 2023, the year of the 75th anniversary of the company, despite the
difficult market environment.
↗ G.05 SALES (€ million)
In the footwear division, sales increased in the reporting currency, the euro, by 6.1% to € 4,583.4 million.
Currency-adjusted sales increased by 12.4%. The footwear division continued to be the growth driver and the
strongest growth was achieved in the Sportstyle, Teamsport and Basketball categories. The share of the
footwear division in total sales rose from 51.0% in the previous year to 53.3% in 2023.
Sales in the apparel division fell by 4.6% to € 2,763.0 million in the reporting currency, the euro. Adjusted for
currency effects, sales fell only slightly by 0.3%. Higher sales in the categories Teamsport and Running &
Training were compared to lower sales in the Sportstyle and Motorsport categories. The share of the
apparel division decreased to 32.1% of Group sales (previous year: 34.2%).
The accessories division reported an increase in sales in the reporting currency, the euro, of 0.3% to
€ 1,255.3 million. This corresponds to a currency-adjusted sales growth of 3.1%. The growth in the
Teamsport category was partly offset by slightly lower sales with Cobra golf clubs. In 2023, the share of the
accessories division decreased to 14.6% of Group sales from 14.8% in the previous year.
5,502.2
5,234.4
6,805.4
8,465.1
8,601.7
2019
2020
2021
2022
2023
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↗ G.06 SALES BY PRODUCT DIVISIONS (€ million)
OWN RETAIL ACTIVITIES
PUMA's own retail activities include direct sales to our consumers ("Direct-to-consumer business"). This
includes selling to our customers in PUMA's own retail stores, the so-called "Full Price Stores" and
"Factory Outlets". Our e-commerce business on our own online platforms and on the platforms of online
retailers, which we refer to as "marketplaces", is also part of the direct sales to our consumers. Our own
retail businesses ensure regional availability of PUMA products and the presentation of the PUMA brand in
an environment suitable to our brand positioning.
PUMA's direct-to-consumer sales increased by 17.5% currency-adjusted to € 2,133.0 million in the financial
year 2023. This corresponds to a share of 24.8% of total sales (previous year: 23.1%). Adjusted for currency
effects, sales in PUMA's own full-price stores and factory outlets increased by 18.8% in 2023. In the e-
commerce business, sales increased by 15.0% in 2023, adjusted for currency effects. The continued strong
sales growth in our DTC business was due to continued brand desirability, the opening of own retail stores
and their increase in productivity.
↗ G.07 DIRECT-TO-CONSUMER SALES
881.1
892.7
1,124.5
1,251.0
1,255.3
2,068.7
1,974.1
2,517.3
2,896.3
2,763.0
2,552.5
2,367.6
3,163.6
4,317.9
4,583.4
2019
2020
2021
2022
2023
Accessories
Apparel
Footwear
1,395.3
1,424.5
1,724.8
1,951.4
2,133.0
25.4%
27.2%
25.3%
23.1%
24.8%
2019
2020
2021
2022
2023
Direct-to-consumer sales in € million
in % of sales
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LICENSING BUSINESS
PUMA grants licenses to independent partners for various product divisions, such as watches, glasses,
safety shoes, workwear and gaming accessories. In addition to design, development and manufacture, these
companies are also responsible for product distribution. Income from license agreements also includes
some distribution licenses for different markets. PUMA's royalty and commission income increased by
14.0% to € 38.5 million in the financial year 2023 (previous year: € 33.8 million). The main reason for the
increase was the granting of new licences in the golf and accessories segment.
REGIONAL DEVELOPMENT
In the following explanation of the regional development of sales, the sales are allocated to the customers'
actual region ("customer site"). It is divided into three geographical regions (EMEA, Americas and
Asia/Pacific).
PUMA's sales in the reporting currency, the euro, increased by 1.6% in the financial year 2023. This
corresponds to a currency-adjusted sales increase of 6.6% compared to the previous year. This currency-
adjusted growth resulted in particular from good sales performance in the EMEA and Asia/Pacific regions,
which both achieved double-digit growth rates. In contrast, the Americas region recorded a slight decrease
in sales.
In the EMEA region, sales in the reporting currency, the euro, rose by 9.8% to € 3,418.4 million. Adjusted for
currency effects, this corresponds to an increase in sales of 13.4%. Almost all countries in the region, with
the exception of Great Britain and Sweden, contributed to this development with sales growth. Particularly
strong growth came from Germany, Spain, Italy and Turkey. In terms of Group sales, the EMEA region's
share rose from 36.8% in the previous year to 39.7% in 2023.
With regard to product divisions, sales from footwear recorded a currency-adjusted increase of 21.7%.
Currency-adjusted sales of apparel increased by 8.2%. Currency-adjusted sales of accessories rose by 2.5%.
↗ G.08 EMEA SALES (€ million)
2,001.4
1,982.9
2,531.7
3,113.8
3,418.4
2019
2020
2021
2022
2023
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In the Americas region, sales in the reporting currency, the euro, decreased by 8.0% to € 3,389.9 million. The
decline in sales in the reporting currency was impacted by negative exchange rate effects due to the strong
devaluation of the Argentine peso against the euro. Currency-adjusted sales decreased by 2.4%. The
currency-adjusted sales decline was mainly due to a difficult macroeconomic environment, high inventory
levels in the trade and PUMA's relative dependence on the off-price wholesale business in the USA. The
Americas region's share of Group sales decreased from 43.5% in the previous year to 39.4% in 2023.
In terms of product divisions, both footwear (+1.5% currency-adjusted) and accessories (+4.8% currency-
adjusted) recorded sales growth compared to the previous year. In contrast, currency-adjusted sales in the
apparel division fell by 13.3%.
↗ G.09 AMERICAS SALES (€ million)
In the Asia/Pacific region, sales in the reporting currency, the euro, rose by 7.7% to € 1,793.4 million. Adjusted
for currency effects, this corresponds to an increase in sales of 13.6%. While China, India and Singapore,
among others, recorded double-digit sales growth, sales declined in South Korea and Australia. The share of
the Asia/Pacific region in Group sales increased from 19.7% in the previous year to 20.8% in 2023.
In terms of product divisions, both footwear (+22.6% currency-adjusted) and apparel (+5.9% currency-
adjusted) recorded sales growth compared to the previous year. In contrast, currency-adjusted sales in the
accessories division fell by 1.4%.
↗ G.10 ASIA/PACIFIC SALES (€ million)
1,944.0
1,775.2
2,636.9
3,685.9
3,389.9
2019
2020
2021
2022
2023
1,556.9
1,476.3
1,636.8
1,665.3
1,793.4
2019
2020
2021
2022
2023
PUMA Annual Report 2023
↗ Combined Management Report
233
RESULTS OF OPERATIONS
↗ T.01 INCOME STATEMENT
2023
2022
€ million
%
€ million
%
+/-%
Sales
8,601.7
100.0%
8,465.1
100.0%
1.6%
Cost of sales
-4,615.1
-53.7%
-4,562.3
-53.9%
1.2%
Gross profit
3,986.6
46.3%
3,902.7
46.1%
2.1%
Royalty and commission income
38.5
0.4%
33.8
0.4%
14.0%
Other operating income and expenses
-3,403.5
-39.6%
-3,295.9
-38.9%
3.3%
Operating Result (EBIT)
621.6
7.2%
640.6
7.6%
-3.0%
Financial result
-143.3
-1.7%
-88.9
-1.1%
61.2%
Earnings before taxes (EBT)
478.3
5.6%
551.7
6.5%
-13.3%
Taxes on income
-117.8
-1.4%
-127.4
-1.5%
-7.5%
- Tax rate
24.6%
23.1%
Net income attributable to non-controlling
interests
-55.7
-0.6%
-70.9
-0.8%
-21.4%
Net income
304.9
3.5%
353.5
4.2%
-13.7%
Weighted average number of outstanding
shares (million shares)
149.85
149.65
0.1%
Weighted average number of outstanding
shares, diluted (million shares)
149.87
149.66
0.1%
Earnings per share (€)
2.03
2.36
-14.0%
Earnings per share (€) - diluted
2.03
2.36
-14.0%
PUMA Annual Report 2023
↗ Combined Management Report
234
ILLUSTRATION OF EARNINGS DEVELOPMENT IN 2023 COMPARED TO THE OUTLOOK
In the outlook in the combined management report for 2022, PUMA forecast an operating result (EBIT) in the
range between € 590 million and € 670 million for the financial year 2023 (2022: € 641 million). Thanks to
continued strong brand momentum, exciting product launches, strong partnerships along the value chain,
and supported by our operational flexibility, PUMA was able to fully achieve its forecast for operating result
for the full-year 2023, despite the significant devaluation of the Argentine peso.
More details on earnings development in the financial year under review are provided below.
GROSS PROFIT MARGIN
PUMA's gross profit in the financial year 2023 increased by 2.1% from € 3,902.7 million to € 3,986.6 million.
The gross profit margin improved by 20 basis points from 46.1% to 46.3%. The increase was due to price
adjustments, a more favourable regional and distribution channel mix, and positive currency effects. In
contrast, a discount-intensive market environment with higher sales-promoting measures, fluctuating
sourcing prices due to raw materials and fluctuating freight costs had a negative effect.
The gross profit margin in the footwear division improved from 44.9% in the previous year to 45.4% in 2023.
The gross profit margin for apparel increased from 47.3% to 47.8%. In contrast, the gross profit margin for
accessories fell from 47.4% to 46.6%.
↗ G.11 GROSS PROFIT/GROSS PROFIT MARGIN
2,686.4
2,458.0
3,257.8
3,902.7
3,986.6
48.8%
47.0%
47.9%
46.1%
46.3%
2019
2020
2021
2022
2023
Gross profit in € million
Gross profit margin in %
PUMA Annual Report 2023
↗ Combined Management Report
235
OTHER OPERATING INCOME AND EXPENSES
The net expense of other operating income and expenses (OPEX) increased by 3.3% in financial year 2023 to
€ 3,403.5 million (from € 3,295.9 million in the previous year). The increase is due to sales-related
distribution and other variable costs, the strong growth in our DTC sales channel and higher marketing
investments. This development was partially offset by operational leverage in other cost areas and
favourable exchange rate effects. The cost ratio increased from 38.9% in the previous year to 39.6% in 2023.
↗ G.12 OPERATING EXPENSES (as a % of sales)
Within selling expenses, marketing/retail expenses increased by 4.1% to € 1,643.2 million, while the cost
ratio was 19.1% of sales in 2023, compared with a cost ratio of 18.6% in the previous year. Other selling
expenses, which mainly include sales-related costs and costs for warehousing and logistics, increased by
5.2% to € 1,155.8 million. The cost ratio of other selling expenses decreased to 13.4% of sales in 2023
compared to a cost ratio of 13.0% in the previous year.
Research and development/product management expenses increased by 12.0% to € 171.5 million compared
to the previous year and the cost ratio rose slightly to 2.0%. Other operating income amounted to
€ 17.8 million in the past financial year and essentially includes income from the sale of fixed assets and
income from the disposal of finance leases. General and administrative expenses fell by 3.2% to
€ 450.9 million in 2023. The cost ratio of general and administrative expenses improved to 5.2% of sales in
2023. Depreciation and amortisation is included in the relevant costs and total € 351.7 million (previous year:
€ 332.8 million). In addition, the respective costs include impairment expenses totalling € 5.7 million and
corresponding reversals of impairment losses in the amount of € 11.9 million.
41.3%
43.3%
40.0%
38.9%
39.6%
2019
2020
2021
2022
2023
PUMA Annual Report 2023
↗ Combined Management Report
236
RESULT BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTISATION (EBITDA)
The result before interest (= financial result), taxes, depreciation and amortisation (including impairment
losses and reversals of impairment losses) (EBITDA) decreased by 3.2% to € 967.1 million in financial year
2023 (from € 999.3 million in the previous year). The EBITDA margin decreased from 11.8% in the previous
year to 11.2% in 2023.
OPERATING RESULT (EBIT)
In the 2023 financial year, operating result decreased by 3.0% to € 621.6 million (from € 640.6 million in the
previous year). Despite higher sales and an improved gross profit margin, the slightly stronger increase in
other operating income and expenses in comparison with sales led to this decline. The EBIT margin
decreased from 7.6% in the previous year to 7.2% in 2023.
↗ G.13 OPERATING RESULT
FINANCIAL RESULT
The financial result in 2023 decreased from a total of € -88.9 million in the previous year to € -143.3 million.
This development is mainly due to the sharp increase in expenses from currency conversion differences
totalling € -69.4 million in 2023, compared to just € - 2.2 million in the previous year, and also includes
valuation losses in connection with the devaluation of the Argentine peso. The increase in interest expenses
in 2023 to a total of € -100.8 million (previous year: € - 54.4 million) also contributed significantly to this
development. In contrast, interest income increased to a total of € 37.8 million in 2023 (previous year:
€ 32.3 million) and expenses from hyperinflation effects fell to € - 23.7 million (previous year:
€ - 27.8 million). The remaining other financial income and expenses, which in particular include interest
components in connection with forward exchange contracts ("swap points"), improved to € 12.8 million
compared to € - 36.8 million in the previous year.
EARNINGS BEFORE TAXES (EBT)
In the financial year 2023, PUMA generated earnings before taxes of € 478.3 million. This corresponds to a
decrease of 13.3% compared to the previous year (€ 551.7 million). Tax expenses decreased to € 117.8 million,
compared to € 127.4 million in the previous year. Accordingly, the tax rate rose from 23.1% to 24.6% in 2023.
440.2
209.2
557.1
640.6
621.6
8.0%
4.0%
8.2%
7.6%
7.2%
2019
2020
2021
2022
2023
Operating result in € million
as a % of sales
PUMA Annual Report 2023
↗ Combined Management Report
237
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
Net earnings attributable to non-controlling interests relate to companies in the North American market, in
each of which the same shareholder holds a minority stake. The earnings attributable to these interests
decreased by 21.4% to € 55.7 million in the financial year 2023 (previous year: € 70.9 million). The companies
affected are PUMA United North America LLC, PUMA United Aviation North America LLC, PUMA United
Canada ULC and Janed Canada LLC. The business purpose of these companies is mainly the sale of socks,
bodywear, accessories and children's apparel in the North American market.
CONSOLIDATED NET INCOME
Consolidated net income decreased by 13.7% in financial year 2023 to € 304.9 million (from € 353.5 million).
Despite higher sales and an improved gross profit margin, the slightly stronger increase in other operating
income and expenses compared to sales and the declining financial result led to this development.
Earnings per share and diluted earnings per share decreased from € 2.36 in the previous year to € 2.03 in
the financial year 2023, in line with the development of the consolidated net income.
DEVELOPMENT OF THE SEGMENTS
Internal management of the PUMA Group is carried out across seven segments (Europe, EEMEA, North
America, Latin America, Greater China, Asia/Pacific (excluding Greater China) and stichd), based on the
registered office of the respective subsidiaries. The differences from the presented regional development of
sales are essentially down to the separated "stichd" segment and India and Southeast Asia, which are
allocated to the EEMEA segment.
The operating segments developed in line with the trends already discussed. Exceptions were the EEMEA
segment, which showed double-digit growth rates due to the comparatively strong growth of sales and
operating result in several countries and especially in Turkey. In the North America segment, the difficult
macroeconomic environment, high inventory levels in the trade and the relative dependence on wholesale
business in the off-price segment led to a decline in sales and operating result. In the Latin America
segment, operating result was only at the previous year's level, despite double-digit sales growth in Mexico,
Chile and Brazil. This was mainly due to the negative currency exchange effects resulting from the sharp
devaluation of the Argentine peso, which had a strong impact on profitability in the Latin America segment.
In the Greater China segment, double-digit sales growth and a significant improvement in operating result
were achieved due to the continued recovery and re-opening of the market. The stichd segment recorded a
decline in operating result due to start-up costs in the Formula 1 business and due to expenses in
connection with the implementation of SAP in 2023.
PUMA Annual Report 2023
↗ Combined Management Report
238
DIVIDENDS
The positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose
the distribution of a dividend of € 0.82 per share for the financial year 2023 at the Annual General Meeting on
22 May 2024. This corresponds to a payout ratio of 40.3% of consolidated net income. The higher payout ratio
results from the strong improvement in free cash flow and reflects the underlying positive operating
business development. In general, PUMA's dividend policy continues to provide for a payout of 25% to 35% of
consolidated net income. The payment of the dividend is to take place in the days after the Annual General
Meeting at which the decision is made on the payout. In the previous year, a dividend of € 0.82 per share was
paid out (payout ratio for previous year: 34.7%).
↗ G.14 EARNINGS/DIVIDEND PER SHARE (in €)
1.76
0.53
2.07
2.36
2.03
0.00
0.16
0.72
0.82
0.82
2019
2020
2021
2022
2023
Earnings per share
Dividend per share
PUMA Annual Report 2023
↗ Combined Management Report
239
NET ASSETS AND FINANCIAL POSITION
↗ T.02 BALANCE SHEET
31 Dec. 2023
31 Dec. 2022
€ million
%
€ million
%
+/-%
Cash and cash equivalents
552.9
8.3%
463.1
6.8%
19.4%
Inventories *
1,804.4
27.2%
2,245.1
33.1%
-19.6%
Trade receivables *
1,118.4
16.8%
1,064.9
15.7%
5.0%
Other current assets *
385.6
5.8%
304.1
4.5%
26.8%
Other current assets
69.8
1.1%
123.2
1.8%
-43.4%
Current assets
3,931.1
59.2%
4,200.4
62.0%
-6.4%
Deferred tax assets
296.1
4.5%
295.0
4.4%
0.3%
Right-of-use assets
1,087.7
16.4%
1,111.3
16.4%
-2.1%
Other non-current assets
1,325.6
20.0%
1,166.0
17.2%
13.7%
Non-current assets
2,709.3
40.8%
2,572.3
38.0%
5.3%
Total assets
6,640.4
100.0%
6,772.7
100.0%
-2.0%
Current borrowings
145.9
2.2%
75.9
1.1%
92.3%
Trade payables *
1,499.8
22.6%
1,734.9
25.6%
-13.6%
Other current liabilities *
631.3
9.5%
792.3
11.7%
-20.3%
Current lease liabilities
212.4
3.2%
200.2
3.0%
6.1%
Other current liabilities
47.7
0.7%
39.7
0.6%
20.1%
Current liabilities
2,537.2
38.2%
2,843.0
42.0%
-10.8%
Non-current borrowings
426.1
6.4%
251.5
3.7%
69.4%
Deferred tax liabilities
12.4
0.2%
42.0
0.6%
-70.5%
Pension provisions
22.5
0.3%
22.4
0.3%
0.7%
Non-current lease liabilities
1,020.0
15.4%
1,030.3
15.2%
-1.0%
Other non-current liabilities
40.0
0.6%
44.7
0.7%
-10.5%
Non-current liabilities
1,520.9
22.9%
1,390.9
20.5%
9.4%
Equity
2,582.3
38.9%
2,538.8
37.5%
1.7%
Total liabilities and equity
6,640.4
100.0%
6,772.7
100.0%
-2.0%
Working Capital
1,177.3
1,086.8
8.3%
- in % of sales
13.7%
12.8%
* included in working capital
PUMA Annual Report 2023
↗ Combined Management Report
240
EQUITY RATIO
PUMA has a very solid capital base. As of the balance sheet date, the equity of the PUMA Group increased by
1.7%, from € 2,538.8 million in the previous year to € 2,582.3 million as of 31 December 2023. Although the
positive consolidated income contributed to the increase in Group equity, there was a negative impact of
€ - 85.9 million from the other comprehensive income that is directly recorded in equity, mainly due to
negative currency conversion differences. The balance sheet total decreased slightly by 2.0% as at the
balance sheet date, to € 6,640.4 million (from € 6,772.7 million in the previous year). Overall, this resulted in
an increase in the equity ratio of 1.4 percentage points from 37.5% in the previous year to 38.9% as at
31 December 2023.
↗ G.15 BALANCE SHEET TOTAL/EQUITY RATIO
WORKING CAPITAL
As of the balance sheet date, working capital increased by 8.3% from € 1,086.8 million in the previous year to
€ 1,177.3 million as of 31 December 2023. In relation to sales in the respective financial year, this corresponds
to an increase in the working capital ratio from 12.8% in the previous year to 13.7% at the end of 2023. This
development was mainly attributable to the decline of trade payables due to the adjusted sourcing volumes
in 2023 and the decrease in other current liabilities and provisions included in working capital. In addition,
higher trade receivables and higher other current assets attributable to working capital contributed to the
increase. In contrast, the reduction in inventories had the opposite effect.
On the assets side, inventories fell by 19.6% as at the balance sheet date, to € 1,804.4 million (from
€ 2,245.1 million). This development shows that our previous measures to reduce inventories to an
appropriate level were successful. Trade receivables increased due to longer customary payment terms by
5.0% to € 1,118.4 million (from € 1,064.9 million) as at the balance sheet date. Other current assets, which are
attributable to working capital rose by 26.8% to € 385.6 million (from € 304.1 million), primarily due to higher
advance payments and tax refund claims.
On the liabilities side, trade payables decreased by 13.6% to € 1,499.8 million (from € 1,734.9 million) due to
the adjusted sourcing volumes. The other current liabilities and provisions, which are contained in working
capital and include, among other things, customer bonus and warranty provisions, decreased by 20.3% to
€ 631.3 million (from € 792.3 million).
4,378.2
4,684.1
5,728.3
6,772.7
6,640.4
43.9%
37.7%
39.8%
37.5%
38.9%
2019
2020
2021
2022
2023
Total assets in € million
Equity ratio in %
PUMA Annual Report 2023
↗ Combined Management Report
241
↗ G.16 WORKING CAPITAL
OTHER ASSETS AND OTHER LIABILITIES
Other current assets outside of working capital include, in particular, the positive market value of derivative
financial instruments and current receivables from leases. Overall, other current assets outside of working
capital decreased to € 69.8 million, compared to € 123.3 million in the previous year.
Right-of-use assets fell slightly by 2.1% to € 1,087.7 million (from € 1,111.3 million in the previous year). The
decline was due to the ongoing depreciation of right-of-use assets and the effects of subleasing. In contrast,
the additions to right-of-use assets in 2023 were mainly related to newly opened retail stores and extensions
or contract amendments to existing retail stores as well as the opening of new warehouses or the expansion
of existing warehouses. The right-of-use assets referred to own retail stores totalling € 464.2 million
(previous year: € 430.9 million), warehouses and offices totalling € 557.7 million (previous year:
€ 613.1 million) and other lease items, mainly technical equipment and machines and motor vehicles,
totalling € 65.7 million as of 31 December 2023 (previous year: € 67.3 million). The associated current and
non-current leasing liabilities remained virtually unchanged overall.
Other non-current assets, which mainly comprise intangible assets and property, plant and equipment,
increased by 13.7% to € 1,325.6 million (from € 1,166.0 million) in the past financial year. The increase is
linked to the expansion of investment activities in 2023, following lower investments in non-current assets in
previous years. In addition, the acquisition of investment property totaling € 21.1 million contributed to the
increase.
As at 31 December 2023, current borrowings include the current proportion of promissory note loans in the
amount of € 125.0 million (previous year: € 60.0 million) and short-term bank liabilities amounting to
€ 20.9 million (previous year: € 15.9 million).
Other current liabilities, which exclusively include the negative market value of derivative financial
instruments, increased from € 39.7 million to € 47.7 million compared to the previous year.
Non-current borrowings include promissory note loans totalling € 426.1 million (previous year:
€ 251.5 million).
Pension provisions remained almost unchanged at € 22.5 million (previous year: € 22.4 million).
549.4
465.8
727.9
1,086.8
1,177.3
10.0%
8.9%
10.7%
12.8%
13.7%
2019
2020
2021
2022
2023
Working capital in € million
Working capital as a % of sales
PUMA Annual Report 2023
↗ Combined Management Report
242
Other non-current liabilities amounted to € 40.0 million as at the balance sheet date (previous year:
€ 44.7 million).
CASH FLOW
↗ T.03 CASH FLOW STATEMENT
1-12/2023
1-12/2022
€ million
€ million
+/-%
Earnings before taxes (EBT)
478.3
551.7
-13.3%
Financial result and non-cash effected expenses and income
485.7
367.2
32.3%
Gross cash flow
964.1
918.9
4.9%
Change in current assets, net
-129.2
-343.3
-62.4%
Payments for taxes on income
-181.3
-157.4
15.2%
Net cash from operating activities
653.6
418.3
56.3%
Payments for investing in fixed assets
-300.4
-263.6
13.9%
Other investing and divestment activities incl. interest received
15.8
22.9
-31.1%
Net cash used in investing activities
-284.6
-240.8
18.2%
Free cash flow
369.0
177.5
107.9%
Free cash flow (before acquisitions)
369.0
177.5
107.9%
Dividend payments to shareholders of PUMA SE
-122.8
-107.7
14.0%
Dividend payments to non-controlling interests
-92.4
-73.3
26.2%
Proceeds from borrowings
299.6
17.9
1571.2%
Cash repayments of borrowings
-59.1
-69.5
-14.9%
Repayments of lease liabilities
-208.0
-190.0
9.4%
Interest paid
-94.3
-53.8
75.3%
Net cash used in financing activities
-277.1
-476.4
-41.8%
Exchange rate-related changes in cash and cash equivalents
-2.1
4.4
-146.8%
Changes in cash and cash equivalents
89.8
-294.4
-130.5%
Cash and cash equivalents at the beginning of the financial year
463.1
757.5
-38.9%
Cash and cash equivalents at the end of the financial year
552.9
463.1
19.4%
NET CASH FROM OPERATING ACTIVITIES
Gross cash flow increased by 4.9% to € 964.1 million in financial year 2023 (from € 918.9 million in the
previous year). This development was due to the increase in non-cash adjustments relating to the financial
result and other non-cash expenses and income by 32.3% to € 485.7 million. In contrast, earnings before
taxes decreased by 13.3% to € 478.3 million.
PUMA Annual Report 2023
↗ Combined Management Report
243
↗ G.17 GROSS CASH FLOW (€ million)
As a result of the smaller increase in working capital compared to the previous year, there was a lower cash
outflow from the change in net working capital* of € - 129.2 million in financial year 2023, compared to a
cash outflow of € - 343.3 million in the previous year. The cash outflow from payments for income taxes
increased from € - 157.4 million in the previous year to € - 181.3 million in financial year 2023. On balance,
due to the improvement in gross cash flow and the lower cash outflows in connection with working capital,
there was a significant improvement in cash inflow from operating activities, which rose by 56.3% to
€ 653.6 million (from € 418.3 million).
NET CASH USED IN INVESTING ACTIVITIES
In the financial year 2023, cash outflow from investment activities increased from a total of € 240.8 million to
€ 284.6 million. The investments in fixed assets included in this figure increased from € 263.6 million in the
previous year to € 300.4 million in 2023 in line with our investment planning. The increase mainly related to
investments in our own retail stores, in our logistics infrastructure and in investment properties. In addition,
investments in the modernisation of the IT infrastructure continued to be made. The increase in capital
expenditures relates in particular to the North America and Latin America segments and the central area,
which is not allocated to the business segments.
* Net current assets include working capital line items plus current assets and liabilities, which are not part of the working
capital calculation. Current lease liabilities are not part of the net current assets.
704.8
522.8
821.2
918.9
964.1
2019
2020
2021
2022
2023
PUMA Annual Report 2023
↗ Combined Management Report
244
FREE CASH FLOW BEFORE ACQUISITIONS
The free cash flow before acquisitions is the balance of the cash inflows and outflows from operating and
investing activities. In addition, an adjustment is made for incoming and outgoing payments that relate to
the purchase or sale of shareholdings, where applicable. No acquisitions or disposals of investments were
made in 2022 and 2023.
Free cash flow before acquisitions improved from € 177.5 million in the previous year to € 369.0 million in the
financial year 2023. Free cash flow before acquisitions was 4.3% of sales compared to 2.1% in the previous year.
↗ G.18 FREE CASH FLOW (BEFORE ACQUISITIONS) (€ million)
NET CASH USED IN FINANCING ACTIVITIES
The net cash used in financing activities decreased overall from a cash outflow of € 476.4 million in the
previous year to a cash outflow of € 277.1 million in 2023. The decline in cash outflow was mainly due to
increased proceeds from taking on financial borrowings.
A dividend payment of € 122.8 million was distributed to the shareholders of PUMA SE for the financial year
2022. In the previous year, the dividend payment was € 107.7 million. The net cash used in financing activities
also included payouts to non-controlling interests totalling € 92.4 million in 2023 (previous year:
€ 73.3 million). Cash inflows from borrowings amounted to € 299.6 million, compared with cash inflows of
€ 17.9 million in the previous year. In the financial year 2023, payments made for the repayment of financial
borrowings totalled € 59.1 million (previous year: € 69.5 million). The cash outflows for the repayment of
leasing liabilities and related interest expenses included in the cash outflow from financing activities
increased from a total of € 228.7 million in the previous year to € 254.8 million in 2023.
As of 31 December 2023, PUMA had cash and cash equivalents of € 552.9 million, an increase of 19.4%
compared with the previous year (€ 463.1 million). The PUMA Group also had credit lines totalling
€ 1,552.8 million as of 31 December 2023 (previous year: € 1,271.0 million). Unutilised credit lines amounted
to € 986.1 million as at the balance sheet date, compared to € 943.7 million in the previous year.
331.2
276.0
276.2
177.5
369.0
2019
2020
2021
2022
2023
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STATEMENT REGARDING THE BUSINESS DEVELOPMENT AND THE OVERALL
SITUATION OF THE GROUP
In financial year 2023, we were confronted with an increasingly difficult geopolitical and macroeconomic
market environment. The conflict in the Middle East, the war in Ukraine, persistent inflation and risks of
recession had a negative impact on the consumer sentiment and led to volatile retail demand. We therefore
considered 2023 to be a transitional year. In 2023, we continued to focus on overcoming the short-term
challenges without compromising the medium and long-term success of PUMA. Accordingly, we prioritised
sales growth and increasing market share over short-term profitability optimisation. Despite the difficult
market environment, we were able to further increase PUMA's sales based on our operating flexibility. In
the past financial year, we were also able to fully achieve our target in terms of operating result.
Our focus on the PUMA family is an important cornerstone of our corporate strategy. We want to offer our
employees an attractive working environment and diversity plays an important role in our corporate culture.
In 2023, PUMA received multiple awards for this successful strategy, including the "Top Employer Award" for
24 PUMA subsidiaries in the Europe, Asia/Pacific and Latin and North America regions. We can therefore
continue to call ourselves a "Global Top Employer". We were also named one of the "World's Best
Employers" by Forbes and a "Leader in Diversity" by the Financial Times, and awarded the "Great Place to
Work" seal in numerous countries. We were able to further optimise our processes by upgrading the
logistics centres in our main markets, and by expanding existing warehouses and opening new ones. We
also invested in improving our IT infrastructure, product development and ERP systems.
We were able to achieve currency-adjusted sales growth of 6.6% in the financial year 2023. Sales
development was affected by the significant devaluation of the Argentine peso, which had an extraordinary
impact in the fourth quarter and on the full-year 2023. Due to the extent and timing of these currency
effects, we were unable to fully compensate for all of the negative impacts at the end of the year.
Nevertheless, sales development was mainly in the high single-digit percentage range, in line with the
outlook for currency-adjusted sales growth. In addition to sales growth, the gross profit margin improved.
However, these positive effects were offset by the slightly stronger increase in other operating income and
expenses compared to sales.
Operating result (EBIT) of € 621.6 million in the past financial year was in line with our forecast of a range
between € 590 million and € 670 million. Despite the significant devaluation of the Argentine peso, we have
therefore fully achieved our target in terms of operating result in the past financial year. The devaluation of
the Argentine peso had a particularly negative effect on the financial result. Because of this, consolidated
net income amounted to € 304.9 million compared to € 353.5 million in the previous year. This corresponds
to a decrease of 13.7%. Earnings per share therefore decreased from € 2.36 in the previous year to € 2.03.
Under the given circumstances of a challenging macroeconomic environment worldwide and the
exceptional devaluation of the Argentine peso, we are very satisfied with the achievement of objectives in
financial year 2023. We believe that, despite the exceptional devaluation of the Argentine peso, the business
development of PUMA in 2023 reflects strong underlying operational development and strict cost discipline.
With regard to the consolidated balance sheet, we believe that PUMA continues to have a very solid capital
base. As of the balance sheet date, the PUMA Group's equity amounted to nearly € 2.6 billion and the equity
ratio was 38.9%.
Our measures to right-size inventories to an appropriate level contributed to limiting the increase in our
working capital in 2023. This is also reflected in the improvement in the cash flow from operating activities
and free cash flow. Our cash and cash equivalents amounted to € 552.9 million as of the balance sheet date.
In addition, the PUMA Group has unutilised credit lines totalling € 986.1 million at its disposal.
Consequently, the net assets, financial position and results of operations of the PUMA Group is overall very
solid at the time the combined management report was prepared. This enables the Management Board and
the Supervisory Board to propose to the Annual General Meeting on 22 May 2024 a dividend of € 0.82 per
share for the financial year 2023. This corresponds to a payout ratio of 40.3% in relation to the consolidated
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net income according to IFRS. The higher payout ratio results from the strong improvement in free cash
flow and reflects the underlying positive operating business development. In general, PUMA's dividend
policy continues to provide for a payout of 25% to 35% of consolidated net income.
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COMMENTS ON THE FINANCIAL STATEMENTS OF
PUMA SE IN ACCORDANCE WITH THE GERMAN
COMMERCIAL CODE (HGB)
The annual financial statements of PUMA SE are prepared in accordance with the rules of the German
Commercial Code (German GAAP, HGB), taking into account the SEAG (German SE Implementation Act) and
the German Stock Corporation Act (AktG). PUMA SE is the parent company of the PUMA Group. PUMA SE's
results are to a large extent influenced by the directly and indirectly held subsidiaries and shareholdings.
The business development of PUMA SE is essentially subject to the same risks and opportunities as the
PUMA Group. In addition, the management of earnings before taxes (EBT) is affected by changes in the
financial result.
PUMA SE is responsible for wholesale business in the DACH area, consisting of the home market of
Germany, Austria, and Switzerland. Furthermore, PUMA SE is also responsible for pan-European
distribution for individual key accounts and for sourcing products from European production countries, as
well as global licensing management. In addition, PUMA SE acts as a holding company within the PUMA
Group and is as such responsible for international product development, merchandising, international
marketing, the global areas of finance, operations and PUMA's strategic direction.
RESULTS OF OPERATIONS
↗ T.04 INCOME STATEMENT (GERMAN GAAP, HGB)
2023
2022
€ million
%
€ million
%
+/- %
Sales
1,243.7
100.0%
1,151.9
100.0%
8.0%
Other operating income
83.7
6.7%
84.0
7.3%
-0.4%
Cost of sales
-389.5
-31.3%
-316.4
-27.5%
23.1%
Personnel expenses
-130.8
-10.5%
-120.2
-10.4%
8.8%
Depreciation
-36.1
-2.9%
-36.8
-3.2%
-2.0%
Other operating expenses
-898.8
-72.3%
-816.3
-70.9%
10.1%
Total expenses
-1,455.2
-117.0%
-1,289.7
-112.0%
12.8%
Financial result
258.8
20.8%
189.5
16.5%
36.6%
Income before Tax
131.0
10.5%
135.8
11.8%
-3.5%
Income tax
-21.2
-1.7%
-18.8
-1.6%
12.9%
Net income
109.8
8.8%
117.0
10.2%
-6.2%
In the financial year 2023, sales increased by a total of 8.0% to € 1,243.7 million. The increase resulted both
from higher revenues from product sales and from higher commission income in the context of licence
management. Revenues from PUMA SE product sales rose by 15.8% to € 589.4 million (previous year:
€ 508.9 million). Royalty and commission income included in sales increased by 1.7% to € 599.3 million
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(previous year: € 589.1 million). Other sales, which mainly consisted of recharges of costs to affiliated
companies, totalled € 55.0 million in 2023 (previous year: € 53.9 million).
Other operating income amounted to € 83.7 million in 2023 (previous year: € 84.0 million) and includes, in
particular, realised and unrealised gains from currency conversion related to the measurement of
receivables and liabilities in foreign currencies at the balance sheet date.
The total expenditure from material expenses, personnel expenses, depreciation and other operating
expenses increased by 12.8% to € 1,455.2 million compared to the previous year (previous year: a total of
€ 1,289.7 million). The increase in material expenses compared to the previous year was mainly due to the
increase in sales. The disproportionate growth in material expenses in comparison with sales resulted from
intra-group sales of goods to PUMA Benelux, which were carried out without a surcharge. Personnel
expenses increased due to a higher number of employees. Other operating expenses increased compared
with the previous year, mainly due to increased administrative, marketing and sales expenses.
The financial result increased, compared to the previous year, by 36.6% to € 258.8 million. The increase was
mainly due to higher profit transfer from affiliated companies. The interest result and the income from
dividends from investments in affiliated companies fell slightly. In addition, the investment in Borussia
Dortmund GmbH & Co. KGaA (BVB), Dortmund, was written down in the financial year due to an impairment
of € 0.5 million, which is expected to be permanent.
The increase in sales was offset by the increase in expenses, which is why earnings before income taxes
fell by 3.5% to € 131.0 million in 2023 (from € 135.8 million in the previous year). Taxes on income amounted
to € 21.2 million (previous year: € 18.8 million). Accordingly, PUMA SE's net income under the German
Commercial Code (German GAAP, HGB) decreased by 6.2% to € 109.8 million in the financial year 2023
(previous year: € 117.0 million).
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NET ASSETS
↗ T.05 BALANCE SHEET (GERMAN GAAP, HGB)
31.12.2023
31.12.2022
€ million
%
€ million
%
+/- %
Fixed Assets
1,648.9
63.3%
1,100.3
43.7%
49.9%
Inventory
85.7
3.3%
115.2
4.6%
-25.6%
Receivables and other current assets
680.9
26.1%
1,177.8
46.8%
-42.2%
Cash and cash equivalents
165.8
6.4%
96.5
3.8%
71.8%
Current Assets
932.4
35.8%
1,389.5
55.2%
-32.9%
Others
23.7
0.9%
25.2
1.0%
-5.9%
Total Assets
2,605.0
100.0%
2,515.1
100.0%
3.6%
Equity
925.8
35.5%
933.8
37.1%
-0.9%
Accruals/Provision
123.7
4.7%
141.9
5.6%
-12.8%
Liabilities
1,555.0
59.7%
1,438.9
57.2%
8.1%
Others
0.5
0.0%
0.5
0.0%
0.0%
Total Equity & Liabilities
2,605.0
100.0%
2,515.1
100.0%
3.6%
Overall, fixed assets increased by 49.9% to € 1,648.9 million in 2023. The increase is mainly the result of the
increase in shareholdings in the amount of € 521.9 million due to capital contributions to PUMA Sprint
GmbH, Germany, as well as further investments in IT.
The decline in inventories of current assets by 25.6% to € 85.7 million was mainly due to more conservative
purchasing behaviour, especially at the end of the year. The consolidation of inventories for Central Europe,
including Benelux, and the associated improvement in the management of purchases and sales supported
the positive development of inventories. Receivables and other assets decreased by a total of 42.2%
compared with the previous year to € 680.9 million. In particular, lower receivables from affiliated
companies contributed to this development, which resulted in particular from the capital contribution. Cash
and cash equivalents increased by 71.8% to € 165.8 million compared to the previous year, due to the cash
inflow from financing and investing activities.
On the liabilities side, equity fell slightly by 0.9% to € 925.8 million in 2023. In combination with the increase
of the balance sheet total due to higher liabilities, this led to a decline in the equity ratio, which was 35.5%
as at the balance sheet date of 31 December 2023 compared to 37.1% in the previous year.
Provisions decreased by 12.8% compared to the previous year to € 123.7 million. This development was
mainly due to lower provisions for outstanding invoices. Liabilities increased from € 1,438.9 million in the
previous year to € 1,555.0 million as of 31 December 2023. This increase primarily resulted from the
increased liabilities to banks due to the taking out of a promissory note loan and, in contrast, lower
liabilities to affiliated companies.
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FINANCIAL POSITION
↗ T.06 CASH FLOW STATEMENT (GERMAN GAAP, HGB)
2023
2022
€ million
€ million
+/- %
Cash flow used in/ from operating activities
-92.6
4.9
-
Cash flow from/ used in investing activities
66.3
-441.2
-
Free Cash Flow
-26.3
-436.3
-94.0%
Cash flow from financing activities
95.6
134.0
-28.7%
Change in cash and cash equivalents
69.3
-302.3
>-100%
Cash and cash equivalents at beginning of financial year
96.5
398.8
-75.8%
Cash and cash equivalents at year-end
165.8
96.5
71.8%
In financial year 2023, cash outflow from operating activities amounted to € 92.6 million, compared to a
cash inflow of € 4.9 million in the previous year. This development is mainly due to the decrease of
receivables from affiliated companies. In contrast, the reduction in inventories had a positive effect.
The cash inflow from investing activities in 2023 is mainly due to the reduction in cash pool and loan
receivables from affiliated companies. These are offset by cash outflows from investments in fixed assets.
Cash flow from financing activities showed a total cash inflow of € 95.6 million in 2023 (previous year:
€ 134.0 million). The cash inflow primarily resulted from the taking out of promissory note loans. In contrast,
reduced liabilities to affiliated companies and the payment of dividends to PUMA SE shareholders for
financial year 2022 in the amount of € 122.8 million led to a cash outflow.
OUTLOOK
In PUMA SE's financial statements under German Commercial Code (German GAAP, HGB), we expect an
increase in sales in the mid single-digit percentage range for the financial year 2024. Assuming dividends
from investments in affiliated companies at the previous year's level, we expect earnings before tax for the
financial year 2024 to be at the previous year's level.
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INFORMATION CONCERNING TAKEOVERS
The following information, valid 31 December 2023, is presented in accordance with Art. 9 p. 1 c) (ii) of the SE
Regulation in conjunction with Sections 289a, 315a German Commercial Code (HGB). Details under Sections
289a, 315a HGB which do not apply at PUMA SE are not mentioned.
Composition of the subscribed capital (Sections 289a [1][1], 315a [1][1] HGB))
On the balance sheet date, subscribed capital totaled € 150,824,640.00 and was divided into 150,824,640 no-
par value shares with a proportional amount in the statutory capital of € 1.00 per share. As of the balance
sheet date, the Company held 980,096 treasury shares.
Shareholdings exceeding 10% of the voting rights (Sections 289a [1][3], 315a [1][3] HGB)
As of 31 December 2023, there was one shareholding in PUMA SE that exceeded 10% of the voting rights. It
was held by the Pinault family via several companies controlled by them (ranked by size of stake held by the
Pinault family: Financière Pinault S.C.A., Artémis S.A.S. and Kering S.A.). The shareholding of Kering S.A. in
PUMA SE amounted to 1.47% of the share capital on 18 September 2023. The shareholding of Artémis S.A.S.
and Kering S.A. together amounted to 29.99% of the share capital on18 September 2023.
Statutory provisions and regulations of the Articles of Association on the appointment and
dismissal of the members of the Management Board and on amendments to the Articles of Association
(Sections 289a [1][6], 315a [1][6] HGB)
Regarding the appointment and dismissal of the members of the Management Board, reference is made to
the applicable statutory requirements of Section 84 German Stock Corporation Act (AktG). Moreover, Section
7[1] of PUMA SE’s Articles of Association stipulates that Management Board shall consist of two members in
the minimum; the Supervisory Board determines the number of members in the Management Board. The
Supervisory Board may appoint deputy members of the Management Board and appoint a member of the
Management Board as chairperson of the Management Board. Members of the Management Board may be
dismissed only for good cause, within the meaning of Section 84[3] of the AktG or if the employment
agreement is terminated, for which in each case a resolution must be adopted by the Supervisory Board
with a simple majority of the votes cast.
Amendments to the Articles of Association of the Company require a resolution by the Annual General
Meeting. Resolutions of the Annual General Meeting require a majority according to Art. 59 SE Regulation
and Sections 133[1], 179 [2] [1] AktG (i.e. a simple majority of votes and a majority of at least three quarters of
the share capital represented at the time the resolution is adopted). The Company has not made use of
Section 51 SEAG.
Authority of the Management Board to issue or repurchase shares (Sections 289a [1][7], 315a [1][7] HGB)
The authority of the Management Board to issue shares result from Section 4 of the Articles of Association
and from the statutory provisions:
AUTHORISED CAPITAL
By resolution of the Annual General Meeting on 5 May 2021, the Management Board is authorised, with
approval of the Supervisory Board, to increase the share capital of the Company by up to EUR 30,000,000.00
by issuing, once or several times, new no par-value bearer shares against contributions in cash and/or kind
until 4 May 2026 (Authorised Capital 2021). In case of capital increases against contributions in cash, the new
shares may be acquired by one or several banks, designated by the Management Board, subject to the
obligation to offer them to the shareholders for subscription (indirect pre-emption right).
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The shareholders shall generally be entitled to pre-emption rights. However, the Management Board shall
be authorised with approval of the Supervisory Board, to partially or completely exclude pre-emption rights
• to avoid peak amounts;
• in case of capital increases against contributions in cash if the pro-rated amount of the share capital
attributable to the new shares for which pre-emption rights have been excluded does not exceed 10% of
the share capital and the issue price of the newly created shares is not significantly lower than the
relevant exchange price for already listed shares of the same class, Section 186 (3) sentence 4 of the
German Stock Corporation Act (Aktiengesetz, AktG). The 10% limit of the share capital shall apply at the
time of the resolution on this authorisation by the Annual General Meeting as well as at the time of
exercise of the authorisation. Shares of the Company (i) which are issued or sold during the term of the
Authorised Capital 2021 excluding shareholders’ pre-emption rights directly or respectively applying
Section 186 (3) sentence 4 AktG or (ii) which are or can be issued to service option and convertible bonds
applying Section 186 (3) sentence 4 AktG while excluding shareholders’ pre-emption rights during the
term of the Authorised Capital 2021, shall be counted towards said limit of 10%;
• in case of capital increases against contributions in cash insofar as it is required to grant pre-emption
rights regarding the Company’s shares to holders of option or convertible bonds which have been or will
be issued by the Company or its direct or indirect subsidiaries to such an extent to which they would be
entitled after exercising option or conversion rights or fulfilling the conversion obligation as a
shareholder;
• in case of capital increases against contributions in kind for carrying out mergers or for the direct or
indirect acquisition of companies, participation in companies or parts of companies or other assets
including intellectual property rights and receivables against the Company or any companies controlled
by it in the sense of Section 17 AktG.
The total amount of shares issued or to be issued based upon this authorisation while excluding
shareholders’ pre-emption rights may neither exceed 10% of the share capital at the time of the
authorisation becoming effective nor at the time of exercising the authorisation; this limit must include all
shares which have been disposed of or issued or are to be issued during the term of this authorisation
based on other authorisations while excluding pre-emption rights or which are to be issued because of an
issue of option or convertible bonds during the term of this authorisation while excluding pre-emption
rights. The Management Board shall be entitled, with approval of the Supervisory Board, to determine the
remaining terms of the rights associated with the new shares as well as the conditions of the issuance of
shares. The Supervisory Board is entitled to adjust the respective version of the Company’s Articles of
Association with regard to the respective use of the Authorised Capital 2021 and after the expiration of the
authorisation period.
The Management Board of PUMA SE did not make use of the existing Authorised Capital in the current
reporting period.
CONDITIONAL CAPITAL
The Annual General Meeting of 11 May 2022 has authorised the Management Board until 10 May 2027 with
the approval of the Supervisory Board to issue once or several times, in whole or in part, and at the same
time in different tranches bearer and/or registered convertible bonds and/or options and profit-participation
rights and/or profit bonds or combinations thereof with or without maturity restrictions in the total nominal
amount of up to € 1,500,000,000.00.
The share capital is conditionally increased by up to € 15,082,464.00 by issue of up to 15,082,464 new no-par
value bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented
to the extent that conversion/option rights are exercised, or the conversion/option obligations are
performed, or tenders are carried out and to the extent that other forms of performance are not applied.
No use has been made of this authorisation to date.
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AUTHORISATION TO ACQUIRE TREASURY SHARES
The Annual General Meeting of 7 May 2020 resolved under agenda item 6 to authorise PUMA SE to acquire
and utilise treasury shares until 6 May 2025, including the authorisation to sell treasury shares while
excluding shareholders' pre-emption rights and the authorisation to offer and transfer treasury shares to
third parties against non-cash consideration. The authorisation from 2020 was extended by resolution of the
Annual General Meeting on 5 May 2021 to the effect that the Supervisory Board was authorised to issue
treasury shares to members of the Management Board as a component of Management Board
remuneration, while excluding shareholders' pre-emption rights. In addition, the authorisation from 2020
was extended by resolution of the Annual General Meeting on 11 May 2022 to the effect that the Management
Board was authorised to issue shares acquired, excluding shareholders' subscription rights, in connection
with share-based payment or employee share programs of the Company or its affiliated companies to
persons who are or were employed by the Company or one of its affiliated companies or are a member of
the management of a company affiliated with the Company. In all other aspects, the authorisation from 2020
remained unchanged.
No use has been made of the authorisation to acquire treasury shares in the reporting period.
Significant agreements of the Company which are subject to a change of control as a result of a takeover
bid and the resulting effects (Section 289a [1][8], 315a [1][8] HGB)
Material financing agreements of PUMA SE with its creditors contain the standard change-of-control
clauses. In the case of change of control the creditor is entitled to termination and early calling-in of any
outstanding amounts.
For more details, please refer to the relevant disclosures in chapter 17 of the Notes to the Consolidated
Financial Statements.
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CORPORATE GOVERNANCE STATEMENT IN
ACCORDANCE WITH SECTION 289F AND 315D HGB
┌
The corporate governance statement (in accordance with Sections 289f and 315d HGB) includes the
declaration of compliance, information on corporate governance practices and a description of the working
methods of the Management Board and Supervisory Board. It is available at
https://about.puma.com/en/investor-relations/corporate-governance.
└
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RISK AND OPPORTUNITY REPORT
PUMA is continuously exposed to opportunities and risks in the competitive, fast-paced and international
sport and lifestyle industry. The risk strategy is therefore to take business risks in a calculated manner in
order to implement the corporate strategy with all its opportunities. For this purpose, effective risk and
opportunity management is required so that opportunities can be recognised and utilised, and risks can be
identified and managed at an early stage. We define risks as potential future developments or events that
may lead to a negative deviation from targets for the company (see the "Risk Management System" section).
Similarly, opportunities are potential future developments or events that may result in a positive deviation
from targets.
RISK MANAGEMENT SYSTEM
PUMA takes a conscious and controlled approach to risks in order to achieve the company's goals. The aim
of the risk management system is to identify and manage at an early-stage material risks or risks that could
even jeopardise the company's existence and thus support the achievement of the company's objectives. In
addition, compliance with the related laws, regulations and standards must be ensured, as well as
transparency in relation to the risk situation from the perspective of partners such as customers, suppliers
and investors. Therefore, PUMA has established an appropriate and effective risk management organisation
which is able to identify risks at an early stage and manage them in accordance with the corporate strategy
and promote risk awareness within the PUMA Group to facilitate risk-based decisions. As part of the
organisation, risks are looked at Group-wide, unless explicitly stated to the contrary. As in the previous year,
PUMA's risk management system is based on a comprehensive, interactive, and management-oriented
approach to risk that is integrated into the company's organisation and is based on the globally recognised
COSO standard (Committee of Sponsoring Organisations of the Treadway Commission). Opportunity
management is not part of the risk management system and is the responsibility of operational
management teams in the respective regions, markets, and departments (see the "Opportunities" section).
The Management Board of PUMA SE bears overall responsibility for the risk management system in
accordance with Section 91(3) AktG. The Management Board regularly updates the Audit Committee of the
Supervisory Board of PUMA SE. In addition, pursuant to Section 107(4), the Audit Committee has a direct
right to information from the operational management departments. The Risk Management Committee,
which consists of the PUMA SE Management Board and selected managers, is responsible for the design,
review, and adaptation of the risk management system. For the operational coordination of the risk
management process and support of the risk officers, the risk management function of the Group Internal
Audit, Risk Management & Internal Control department has been assigned to prepare the regular risk
reporting to the Risk Management Committee. The responsibilities, tasks and processes of the risk
management system are defined in PUMA’s enterprise risk guidelines. The structure and design of the risk
management system are as follows:
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↗ G.19 RISK MANAGEMENT SYSTEM
The risk owners are mainly the managers of the functional areas and the managing directors of the
subsidiaries. Risks are identified company-wide by performing a bottom-up analysis within the risk owner's
area of responsibility. These risks are regularly reported to the risk management function and/or the local
monitoring bodies in structured interviews that take place every six months or during the year using
established internal reporting channels. As a part of the risk culture at PUMA, general information for risk
management as well as training materials are made available for all employees.
The risks are evaluated and assessed in terms of probability of occurrence and extent of damage using
quantitative criteria with the help of a systematic methodology. The quantitative criteria are represented in
the form of risk classification ranges on a four-level scale: Low, Medium, Significant and High. While the
risk assessment of the probability of occurrence is measured as a percentage rate, the extent of damage is
based on the planned operating result for the upcoming financial year. We follow a net risk approach,
addressing the risks that remain after existing control measures have been implemented. The resulting risk
assessments are presented as an aggregated risk group ("overall risk situation"). Thus, for the materiality
assessment, the quantified risks are combined from their extent of damage and probability of occurrence
and are classified in a comprehensive risk matrix regarding their significance level (“Low”, “Moderate”,
“Material” and “Critical”) for internal monitoring and to assess their viability (see graphic G.21).
For example, a risk can be allocated within the most critical range, which may also include risks that could
even jeopardise the company's existence, in the case that its assessment reflects a combination of highest
bandwidth for extent of damage (“High > € 50 million”) and probability (“High > 50%”). The overview of the
risk groups is presented in table T.7, summarised in the order of their relative importance and their change
during the year.
Supervisory Board / Audit Committee
Management Board / Risk Management Committee
Risk Strategy
Internal Audit
Monitoring
Risk Owner
Subsidiaries
Functions
Identification
Management
Assessment
Reporting
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↗ G.20 RISK MATRIX
Regular risk identification and assessment is carried out by the risk management function every six months
with all major functional areas. The risks recorded and assessed are also reviewed with a top-down
approach by the Risk Management Committee. This ensures that adequate consideration is given to
interdependencies and the overall risk situation.
The risk owners are responsible for the operational management of identified risks. Risks can be managed
by avoiding, reducing, diversifying, or transferring the risk to achieve the targeted and acceptable residual
risk. Within the reporting process, material risks or those which could even jeopardise the company’s
existence are coordinated with and managed by the Risk Management Committee or the Management
Board, considering the risk-bearing capacity, which is also based on the planned operating result.
The methodology and structure of the risk management system are continuously monitored in terms of
their appropriateness and effectiveness and adapted or improved when required. This is carried out on the
one hand by the Internal Audit department, as an independent audit body within the PUMA Group, and on
the other hand through the utilisation of the results of the auditor of PUMA SE, which assesses the early
risk identification system annually for its fundamental suitability to be able to identify risks that endanger
the company’s existence at an early stage.
Likelihood in %
low
moderate
material
critical
high
significant
medium
low
>50
≤50 ≥20
<20 ≥10
<10
Significance level
Impact in € million
≥5 <20
medium
≥20 <50
significant
≥2 <5
low
≥50
high
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RISKS
The following explanations of risk groups are presented based on their relative importance from the Group
perspective for the financial year 2023.
MACROECONOMIC DEVELOPMENTS
As an internationally operating enterprise, PUMA is exposed to challenges and uncertainties that affect the
global economy and the associated risks may have an impact on our sales and sourcing markets. For
example, macroeconomic risks because of economic recessions, changes in interest rates, or inflation and
cost pressures, might have an impact on consumer behavior, production costs, sales, and profit margins.
Likewise, global events such as political changes, social developments, geopolitical tensions, and natural
disasters can disrupt supply chain activities or affect consumer sentiment, are also reflected in legal and
macroeconomic conditions.
In 2023, the macroeconomic and geopolitical environment remain challenging. The recent conflict in Middle
East, the war in Ukraine, persistent inflation, and the risks of recession weights on consumer sentiment,
resulting in volatile demand in the retail sector. The pattern of China’s economic recovery after COVID-19
remains uncertain and competition with both local and global brands remains high.
Overall, we manage these challenges by having close alignment and communication with regions and key
markets to follow up and deal with critical developments affecting PUMA business environment (e.g., price
increases, supply chain interruptions, geopolitical tensions) and develop alternative scenarios to analyse
possible occurrence of events. Moreover, the Management Board is regularly updated about country and
macroeconomic developments and defines action plans to quickly adapt to changing economic conditions.
BUSINESS PARTNERS
As an enterprise with global operations, managing sourcing and supply chain related risks is of key
importance for PUMA. Most of our PUMA products are produced in Asia in countries like China, Vietnam,
Cambodia, Bangladesh, Indonesia and India. In addition to the challenges, production in these countries
continues to be associated with significant risks for us. These risks arise, for example, from changes in
sourcing, wage and logistic costs, supply bottlenecks for raw materials or components, and quality issues,
as well as from the possibility of overdependence on individual suppliers. Sourcing and the supply chain
must also react to risks, such as changes in duties and tariffs as well as trade restrictions and government
requirements. The transport of products to the distribution countries is also exposed to the risk of delays
and failures by warehouse and logistics service providers due to extraordinary events and/or human or
system error.
To mitigate business partners related risks, we have implemented a functional framework for sourcing and
supply chain processes. Our sourcing portfolio is regularly reviewed and adjusted to avoid creating a
dependence on individual suppliers and sourcing markets. Generally, long-term master framework
agreements are concerted to secure the required production capacities for the future. Regular
communication with PUMA entities allows us to anticipate any price increase and strengthen our forecast
activities. A quality control process and the direct and partnership-like collaboration with suppliers should
permanently secure the quality and availability of our products. Moreover, we continuously analyse political,
economic, and legal framework conditions and have further enhanced our close cooperation with our
logistics partners to be able to react to changes in the supply chain early on and to continuously strengthen
the supply chain. The collaboration with warehouse and logistics service providers is accordingly secured by
selection processes, consistent contractual terms, and permanent monitoring of relevant indicators.
In 2023 global sourcing markets normalised because of the end of COVID-related restrictions: However,
there are continued supply chain and sourcing challenges regarding rising costs and the potential threat of
a larger recession that could still cause disruptions and delays in the operations. To diminish these
challenges, we have further intensified the cooperation with our suppliers and logistics partners to be able
to act flexibly and base our actions around finding the right solutions.
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CURRENCY RISKS
As a group that operates internationally, PUMA is exposed to transactional foreign currency risks. The
currency risks exist to the extent that the exchange rates of currencies in which purchase and sales
transactions as well as lending transactions and receivables are carried out fluctuate against the functional
currency of the PUMA Group - the euro.
PUMA's biggest sourcing market is Asia, where most payments are settled in US dollars (USD), while sales
of the PUMA Group are mostly invoiced in other currencies. PUMA manages currency risk in accordance
with internal guidelines. Material risks are hedged, in accordance with the Group directive, up to a hedging
ratio of 95% of the estimated foreign currency risks from expected purchase and sales transactions over the
next 12 to 15 months. Forward exchange contracts and currency options, usually with a term of around 12
months from the reporting date, are used to hedge the foreign currency risk. For significant risks that are
subject to large hedging costs, high hedging ratios can only be achieved over shorter terms.
To hedge signed or pending contracts against currency risk, PUMA only concludes currency forward
contracts and currency options on customary market terms with reputable international financial
institutions. As of the end of 2023, the net requirements for the 2024 planning period were adequately
hedged against currency effects, if possible.
Foreign exchange risks may also arise from intra-group loans granted for financing purposes. Currency
swaps and currency forward transactions are used to hedge currency risks when converting intra-group
loans denominated in foreign currencies into the functional currencies of the group companies (EUR).
In addition, as an international group with its own presence in a large number of countries, PUMA is also
exposed to translation risks. These arise in the course of consolidation when individual financial statements
of foreign subsidiaries that do not prepare their accounts in euros are translated into the PUMA Group's
functional currency, the euro.
In countries with high interest and inflation rates, both transaction risks and translation risks can arise to a
considerable extent. PUMA does not hedge these risks, as the hedging costs in high-interest countries -
insofar as hedging is possible at all - in some cases significantly exceed the benefits of hedging. The
negative effects of currency and inflation are generally compensated for by adjusting the prices of products
in the respective market.
In order to disclose market risks, IFRS 7 requires sensitivity analysis that show the effects of hypothetical
changes in relevant risk variables on earnings and equity. The periodic effects are determined by relating
the hypothetical changes caused by the risk variables to the balance of the financial instruments held as of
the balance sheet date. The underlying assumption is that the balance as of the balance sheet date is
representative for the entire year.
Currency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a
currency which differs from the functional currency and are monetary in nature. Differences resulting from
the conversion of the individual financial statements to the group currency are not taken into account. All
non-functional currencies in which the Group employs financial instruments are generally considered to be
relevant risk variables.
The currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies.
This also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also
reassessed as part of the sensitivity analysis. It is assumed that all other influencing factors, including
interest rates and raw material prices, remain constant. The effects of the forecasted operating cash flows
are also ignored.
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Currency forward contracts, used to hedge against payment fluctuations caused by exchange rates, are part
of an effective cash-flow hedging relationship pursuant to IAS 39. Changes in the exchange rate of the
currencies underlying these contracts have an effect on the hedge reserve in equity and on the fair value of
these hedging contracts.
PANDEMIC
PUMA first identified the COVID-19 pandemic as a new risk in the financial year 2020 and accordingly estab-
lished the risk category "Pandemic”. Risks related to a pandemic event such as supply chain disruptions,
economic and financial strains, lockdowns, retail store closings, cancellations of sport events or social
restrictions could lead to severe business disruptions, reduced consumption, loss of sales, or liquidity
shortfalls. For financial year 2023, the negative impacts of the pandemic have diminished as countries and
regions ended pandemic-related restrictions and economic and life activities are normalising. In principle,
uncertainties arise in relation to new variants that could lead to possible lockdowns or restrictions.
To mitigate pandemic-related risks, different strategic approaches have been established to ensure and
prioritise the health and safety of our employees and customers, as well as continuous monitoring of the
situation and possible restrictions. There is continuous monitoring of the latest economic events and close
alignment with our regions and key markets to manage critical developments and adapt to market
conditions. Close cooperation with partners and suppliers is essential to implement and monitor
contingency strategies. In addition to Direct-to-Consumer business, the e-commerce business and PUMA
App are an essential part of our distribution structure.
PRODUCT & MARKET ENVIRONMENT
The sport and lifestyle markets are defined by intense competition, constant innovation, and changing
consumer preferences. PUMA faces the challenge of continuously innovating and differentiating its product
offering to capture consumer interest and gain and edge over its competitors. Product and market
environment risks could arise from a non-anticipated or late response to consumer demand within the fast-
moving lifestyle and sports markets. Constant changes in consumer lifestyle/sports trends and long product
lifecycles bear the risk of creating products that are not relevant to our consumers, launching them at the
wrong time, launching them with the wrong marketing campaign or placing them in the wrong distribution
channels. As a result, these risks could lead to a loss in market share, sales shortfalls, and lower brand
attractiveness. Media reports about PUMA also play a key role in brand image. For example, reports about
the infringement of laws or internal/external requirements, product recalls and exposure on social media
as well as reports about workforce diversity and tolerance can cause significant damage to brand image and
ultimately result in the loss of sales and profit.
To mitigate these risks, we conduct market research and systemic monitoring of market environment for
early recognition and taking advantage of relevant consumer trends. Targeted investments in product design
and product development are to ensure that the characteristic PUMA design of the entire product range is
consistent with the overall brand strategy ("Forever Faster"), thereby creating a unique level of brand
recognition. Accordingly, we have set the guiding principle that "We want to become the fastest sports brand
in the world" to underline the company's long-term direction and strategy. The "Forever Faster" brand
promise does not just stand for PUMA's product range as a sports and lifestyle company, but also applies to
all company processes. Brand image is particularly strengthened through cooperation with brand
ambassadors who embody the core of the brand and PUMA's brand values ("brave," "confident,"
"determined" and "joyful") and have a large potential for influencing PUMA's target group. We additionally
counter this risk through careful press, social media, and public relations work as well as by monitoring the
press and social media environment.
PROJECTS
The strategic program portfolio of PUMA contains important and critical projects to ensure that the flow of
goods and information is sufficiently supported by modern warehouse, logistics and IT infrastructure. These
include, for example, the implementation of IT systems to enhance operations, such as centralised systems
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or e-commerce platforms and systems in the warehouse and supply chain. Risk associated with projects
include ineffective change management, lack of resources, high costs, exceeding budget, overrun time
frames, non-acceptance of users due to weak communication, increase vulnerability to potential data
breaches and disruption to business processes.
To manage project-related risks effectively, PUMA has established group and regional project teams as well
as policies to manage the roll-out of new and existing projects that have a significant impact on the core
value chain. In addition, as part of project management practices, continuous alignment with stakeholders
and steering meetings to monitor, provide support and guidance on strategic projects are implemented to
ensure its execution is in line with pre-defined objectives and milestones such as time frames and budgets.
INFORMATION TECHNOLOGY
The ongoing digitalisation of business environments brings new challenges to PUMA in the field of
information technology which – in case of incidents - may have an impact on our operations, data security
and privacy, as well as overall performance. Key business procedures and processes such as supply chain
management, e-commerce, and financial reporting depend on digital services, infrastructure, and their
unimpaired availability. Interruptions of service availability can disrupt essential processes and cause
operational problems. Moreover, information security is of outmost importance for PUMA, the risk of a data
breach might lead to financial loss, brand damage, legal claims, and loss of customer trust.
To mitigate these risks, we continuously carry out technical and organisational measures. Key business
procedures, processes and infrastructure on information technology and security are established based on
best -practice frameworks, regularly updated and controlled. These processes are subject to internal and
external audits to ensure their reliability and the appropriateness of control mechanisms. Appropriate
procedures and guidelines related to IT-incident response are in place and updated accordingly. Moreover,
PUMA has an Information Security Committee which consistently updates the Management Board on the
latest status and developments. In addition, trainings and information campaigns are conducted regularly to
increase awareness and knowledge on information security related issues.
DISTRIBUTION STRUCTURE
PUMA relies on different distribution channels including the Wholesale business with our retail partners
and the Direct-to-Consumer (DTC) business with our PUMA-owned and operated (O&O) retail stores and e-
commerce platforms. This diversified distribution mix enables PUMA to reduce its dependency on individual
distribution channels and/or retail partners.
The wholesale business represents the largest share of sales overall and is characterised by strong
partnerships with all our retail partners. The company’s DTC business has a complementary role and is
intended to ensure a better and more comprehensive presentation of PUMA products in a controlled brand
environment, direct interaction with our end consumers and a higher gross profit margin.
In the wholesale business, growing retailers, including those offering their own brands, and direct
competitors pose the risk of intensified competition for market shares, price pressures or reduced profit
margins. Consumer purchase behavior is also changing, focusing more on e-commerce and a combination
of stationary and digital trade. This requires continuous adjustment of the distribution structure.
Distribution through our O&O retail stores and e-commerce platforms is, however, also associated with
various risks including the required investments in expansion and infrastructure, setting up and
refurbishing stores, higher fixed costs, and leases with long-term lease obligations. This can have an
adverse impact on profitability in the event of a business decline.
To avoid risks, we carry out permanent monitoring of distribution channels and regular reporting by
Controlling and the dedicated functions. We maintain strong collaborations with all our retail partners in line
with our wholesale-focused strategy. The company's reporting and controlling system allows us to detect
negative trends early on, and to take the countermeasures required to manage individual stores and overall
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to monitor the evolution of the distribution landscape. A detailed location and profitability analysis is carried
out in our DTC business before making any investment decision. In e-commerce, global activities are
harmonised and investments in IT systems are carried out to further improve the shopping experience for our
consumers and to drive conversion. This includes the continued global roll-out of the PUMA Shopping App.
SUSTAINABILITY
Sustainability topics are highly important for PUMA specially in sourcing as well as along the entire value
chain. Natural resources crises and the resulting increase in customer requirements regarding
sustainability have led to a stronger ecological focus in our product range, both at our own locations and
along the production and supply chain. A more efficient use of resources, reduction in greenhouse gas
emissions and compliance with environmental standards as well as the increased use of environmentally
preferred materials and environmentally friendly chemicals in production are crucial parts of our
sustainability strategy. The risk of not implementing an effective sustainability approach to our products and
along the supply chain could lead to serious brand damage, loss of customer loyalty, supply chain
disruptions, increased costs, and non-compliance with environmental regulations.
PUMA’s efforts towards managing sustainability risks and efficient use of resources are reflected in the
comprehensive “Forever Better” strategy which defines 10 target areas to improve sustainability
performance: Human Rights, Climate Action, Circularity, Products, Water and Air, Biodiversity, Plastics and
the Oceans, Chemicals, Health & Safety as well as Fair Income. For each of these target areas, which are
aligned to the UN Sustainable Development Goals (SDGs), there are measurable targets and KPI’s which are
regularly monitored and reported to Board Members, Supervisory Board, and stakeholders. Additionally,
risk assessments and audits are performed to ensure our suppliers follow environmental standards.
PUMA’s efforts to engage with stakeholder dialog through different events like “Conference of the People”
or "Voices of a RE:GENERATION" allowed to discuss sustainability topics with generation Z representatives,
industry peers, experts and activists.
PUMA's sustainability report (the Non-financial Report) for the financial year 2023 is published together
with the combined management report and can be accessed at the following page on our website:
https://about.PUMA.com/en/investor-relations/financial-reports.
MONITORING OF WORKING CONDITIONS
An important aspect of corporate responsibility is maintaining and monitoring good working conditions and
compliance with human rights in PUMA’s own operations and throughout the supply chain to ensure that
employee’s rights and well-being are protected. This risk considers the event of human rights violation or
social and environmental non-compliance (e.g., child labor, excessive overtime, forced labor, sexual
harassment, gender-based violence, unsafe work environment, fair income) in PUMA’s own business and its
supply chain.
To mitigate these risks, PUMA has implemented clear policies that are aligned with all relevant legislation
on sustainability like the German Supply Chain Act, United Nations’ (UN) Declaration of Human Rights, the
UN Guiding Principles (UNGPs) on Business and Human Rights, the International Labor Organisation’s Core
Labor Conventions, and the ten principles of the UN Global Compact (UNGC). Regular audits and human
rights/environmental risk assessments are conducted at the corporate and the supply chain level to
evaluate compliance with applicable standards. Stakeholder dialogue with NGOs and partnerships with
organisations (e.g., Fair Labor Association) enable transparent communication channels to address
concerns and share best practices regarding human rights and environmental standards.
PUMA’s Sustainability Report (the Non-financial Report) for the financial year 2023 is available here:
https://about.PUMA.com/en/investor-relations/financial-reports.
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LEGAL
As an internationally operating group, PUMA is exposed to various legal risks. These risks could arise from
Intellectual Property (IP) infringements that involve using a trademark, patent or copyright without proper
authorisation and resulting in legal disputes, brand damage or loss of exclusivity rights. Contractual risks or
risks that a third party could assert claims and litigations for infringements of its trademark rights are also
considered. Counterfeit products are often of inferior quality and may not meet safety standards which can
undermine the PUMA’s brand reputation, reduce consumer trust and lead to legal disputes.
The continuous monitoring of contractual obligations and the integration of internal and external legal
experts in contractual matters should ensure that any legal risks reduced to the minimum. The legal team
is responsible for protecting our intellectual property in order to act against brand piracy. This not only
ensures that we have a strong global portfolio of property rights, such as trademarks, designs and patents,
but also works closely with customs, police and other authorities and provides input to legislators regarding
the implementation of effective measures to protect intellectual property.
COMPLIANCE
As an international group, PUMA is exposed to compliance risks resulting from the potential non-adherence
to corporate governance rules, legal and regulatory requirements, or industry standards. These risks
include fraud, conflict of interest, money laundering, antitrust law, corruption as well as deliberate
misrepresentations in financial reporting which may lead to significant penalties, legal consequences,
reputational damage, and disruption to business operations.
PUMA has implemented various tools to manage such risks. This includes a functioning compliance
management system, the internal control system, group controlling and the internal audit departments to
prevent, detect and sanction compliance-related topics at an early stage. Through the compliance
management system, clear roles and responsibilities are assigned to group and local compliance functions.
To ensure PUMA employees comply with PUMA ‘s values there are ongoing trainings, communication and
awareness campaigns for policies and procedures. PUMA employees also have access to a whistleblowing
system for reporting illegal or unethical behavior.
TAX
As a global company PUMA is exposed to a complex tax environment in which main challenges arise from
cross-border transactions involving intercompany transfer of goods, services, and intellectual property. To
minimise tax exposure, it is essential to optimise tax planning activities and ensure compliance with local
and international laws and reporting requirements. In addition to compliance with national tax regulations
to which the individual group companies are subject, there are increasing risks related to intra-group
transfer pricing, which must be applied for various internal business transactions in accordance with the
arm's length principle between related parties. Different countries have implemented laws and guidelines
for international taxes in alignment with the Organisation for Economic Co-operation and Development
(OECD) recommendations to standardise requirements for transfer-pricing documentation and update
global tax policy.
In order to manage tax-related risks in an effective manner, PUMA established a solid tax governance
framework. An adequate tax organisation with internal and external tax experts to comply with the relevant
tax regulations and to be able to react to changes in the constantly changing tax environment. For the
group-internal transfer pricing, corresponding documentation and policies are in place and aligned with
international and national requirements and standards. There are guidelines and specifications for
determining transfer prices for intra-group transactions that are common for foreign companies, which
comply with the applicable internal procedural rules and are binding for employees who act on behalf of the
group. By means of internal tax reporting, external and internal tax experts can control and monitor tax
developments at PUMA on an ongoing basis. Training and awareness activities are performed on a regular
basis to ensure relevant stakeholders are informed about current tax developments and acquire further
expertise for tax treatment activities. Both, the Management Board, and the Supervisory Board, are
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regularly informed about ongoing tax developments at PUMA to identify and avoid tax-related risks as early
as possible.
PERSONNEL DEPARTMENT
The creative potential, commitment and performance of PUMA employees are essential factors for
achieving our strategic and financial targets. Personnel-related risks involve the management of workforce,
talent acquisition and retention, employee engagement and compliance with employment laws. Any
shortfall in staffing may lead to inadequate performance of tasks and have a negative impact on operational
efficiency. In addition, there is still strong global competition for highly qualified personnel. Therefore, loss
of key personnel and difficulties in identifying, attracting, and retaining key talent could lead to loss of know-
how and decrease business performance. Likewise, non-compliance to health and safety laws and
regulations could lead to accidents, penalties, employee dissatisfaction, business interruptions and
reputational damage at Group level.
Through our human resources strategy, we seek to encourage independent thinking and action, which are
key in an open corporate culture with flat hierarchies on a long-term and sustainable basis. To achieve this
goal, a control process is in place to detect and assess human-resource risks. PUMA pays particular
attention to talent management, identifying key positions and talent, ensuring this talent is trained and
positioned optimally, and succession planning. We have also instituted additional national and global
regulations and guidelines to ensure compliance with legal provisions and safeguard the health and safety
of our employees. Moreover, employee surveys are conducted to obtain feedback and measure employee
engagement (e.g., “Great Place to Work”, “Diversity Leader”). During 2023, PUMA received several awards
which recognised the ongoing efforts to create a diverse, inclusive, and equal workforce (e.g., “Top
Employer”). We will continue to make targeted investments in the human resource needs of functions or
regions to meet the future requirements of our corporate strategy.
LIQUIDITY AND INTEREST RATE RISKS
PUMA continually analyses short-term capital requirements by rolling cash flow planning at the level of the
individual companies in coordination with the central Treasury department. In order to ensure the
company's solvency, financial flexibility and a strategic liquidity buffer, PUMA maintains, for example, a
liquidity reserve in the form of cash and confirmed credit facilities. In this respect, as of December 31, 2023,
the PUMA Group had unused credit lines totaling € 896.1 million.
Medium and long-term funding requirements that cannot be directly covered by net cash from operating
activities are financed by taking out medium and long-term loans. For this purpose, various promissory note
loans were issued in several tranches with fixed and variable coupons and different remaining terms. The
utilised promissory note loans amount to a total of € 551.5 million as of December 31, 2023 and have a
remaining term of between one and five years.
Changes in market interest rates around the world have an impact on future interest payments for variable
interest liabilities. As PUMA only has a limited amount of variable interest-bearing liabilities, interest rate
hedging instruments are used to a limited extent.
DEFAULT RISKS
Due to its business activities, PUMA is exposed to default risk on trade receivables. These risks consider
delayed payments and losses of accounts receivables (e.g., default of a customer) as well as default risks
from counterparty's other contractual financial obligations (e.g., bank deposits, derivative financial
instruments). This could lead to bad debt expenses and reduced liquidity and could have a negative impact
on cash flow and profitability, as trade receivables are one of the most significant financial assets.
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The default risk is managed by continuously monitoring outstanding receivables and recognising
impairment losses, where appropriate. The default risk is limited, if possible, by credit insurance. The
maximum default risk is reflected by the carrying amounts of the financial assets recognised in the balance
sheet. In addition, default risks also arise to a lesser extent from other contractual financial obligations of
the counterparty, such as bank balances and derivative financial instruments.
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RISK OVERVIEW TABLE
The following table summarises the risk groups described above based on their relative importance
(significance level) and any changes during the year:
↗ T.07 OVERVIEW OF RISK GROUPS
Risk Groups
Classification
Description
Significance level
Change compared
to previous year
Macroeconomic
Developments
Strategic
e.g., economic development, political
situation, geopolitical tensions
Critical
↗
Business Partners
Operational
e.g., raw material bottlenecks, supply
chain disruptions, sourcing and
logistic costs, quality problems
Critical
→
Currency Risk
Financial
e.g., exchange rate fluctuations
Critical
↗
Pandemic
Strategic
e.g., store closures, supply problems,
health of employees and customers
Critical
↘
Product and Market
Environment
Strategic
e.g., trends, customer requirements,
brand image, media reports
Material
→
Projects
Strategic
e.g., IT infrastructure, construction
projects
Material
→
Information
Technology
Operational
e.g., cyberattacks, network and
system failures
Material
→
Distribution Structure
Strategic
e.g., change in the distribution
landscape
Material
→
Sustainability
Regulatory
e.g., climate change, environmental
standards
Material
→
Working Conditions
Regulatory
e.g., labor law, human rights, German
Supply Chain Due Diligence Act
Material
→
Legal
Regulatory
e.g., trademark law, patent law,
counterfeit products
Material
→
Compliance
Regulatory
e.g., fraud, corruption
Material
→
Tax
Financial
e.g., transfer prices
Material
→
Personnel Department Operational
e.g., key positions, employee
retention, health & safety
Moderate
→
Liquidity and Interest
Rate
Financial
e.g., cash, credit lines, custody fees,
interest rate developments
Moderate
→
Default Risk
Financial
e.g., payment claims against
customers
Moderate
→
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OPPORTUNITIES
Opportunities should be identified by PUMA at an early stage, assessed and - where possible - materialised.
The operational management teams in the markets and departments are responsible for opportunity
management. In course of the budget- and mid-term process, the identified opportunities are incorporated
into PUMA’s overall planning approach. PUMA has identified and defined multiple key opportunity
categories for the current planning period and beyond.
PUMA is operating in an external environment that is characterised by increasing geo-political risks,
continued macro-economic headwinds, a muted consumer sentiment and a strong volatility in foreign
exchange rates. In addition, the speed of recovery in the important U.S. and Chinese markets remains
uncertain. In response, PUMA will continue to focus on managing short-term challenges without
compromising the mid- and long-term momentum of the brand, always prioritising sales growth and
market share gains over short-term profitability. Therefore, PUMA will continue to focus on being the best
partner to its wholesale accounts and end consumer, providing them with the best possible service.
Within our corporate strategy, we have defined the following six strategic priorities which offer significant
opportunities: elevate the brand, enhance product excellence, improve distribution quality, focus on people
first, digitalise our infrastructure and evolve sustainability. Within this overarching framework, we’re
currently placing a special focus on brand elevation, winning in the important U.S. market, and accelerating
our rebound in China. PUMA will continue to invest into the brand and sees significant opportunities to
increase market shares in all key markets. Supported by new landmark partnerships with brand
ambassadors such as Rihanna and A$AP Rocky, our lifestyle products continue to enjoy strong relevance
and demand across all age groups and regions. We have also made great progress in performance in recent
years and have significantly improved our market position across football, running, fitness, basketball, golf,
and motorsport. PUMA's product range is being continuously optimised and further developed across all
categories with a special emphasis on innovation and franchise management. In 2024, multiple
international sport events such as the UEFA Euro Cup in Germany, the Olympic & Paralympic Games in
Paris, and the Copa America in the U.S. will give us a platform to underline our performance credibility and
to increase brand heat and visibility. The major global interest in these events and sports in general will
further support the growth of the sporting goods industry. We are also seeing a continued trend toward a
healthier lifestyle, greater sports participation, and more casual clothing, which opens corresponding
opportunities for our industry. Meaningful marketing campaigns supported by relevant brand ambassadors
in all major markets are essential to anchor PUMA deeply in the hearts and minds of our consumers and
create brand relevancy and loyalty. To further elevate the brand and strengthen our consumer connection,
PUMA will also launch a big brand campaign in 2024.
In terms of distribution, PUMA will continue to focus on the wholesale channel. The strong partnerships
with our wholesale accounts offer opportunities for future market share gains and business growth.
However, we also see significant opportunities in our Direct-to-Consumer (DTC) business with a special
emphasis on PUMA’s e-commerce channels. Since 2022, we’re rolling out a dedicated PUMA shopping app
which is showing strong results and significantly better KPIs compared to our traditional puma.com e-
commerce channels. The PUMA shopping app will be expanded to other markets in the coming years and
will open further opportunities regarding customer loyalty and sales growth. New store formats and
improvements to the overall shopping experience in our own retail stores can and should also lead to
additional business opportunities. In China, we introduced a new store format that was developed by a local
agency to fit the needs of the Chinese consumers and that is showing strong results. In terms of
distribution, ensuring delivery excellence through new, state-of-the art multi-channel distribution centers
in key markets also continues to support business development.
In information technology, improved communication with wholesale accounts and consumers via digital
channels also offers opportunities – e.g., through the increased use of 3D technology. In addition, new or
more efficient processes supported by digital technology may add value or result in cost optimisation. The
digitalisation of key business processes such as product design will continue to be advanced in order to
increase efficiency and effectiveness.
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268
With end consumers paying more attention to sustainability, there is an opportunity to improve
sustainability-related communication and sell more sustainable products. PUMA’s strategic approach for
sustainability is centered around creating maximum possible impact within the supply chain and final
customer. Numerous initiatives are ongoing and aligned with the UN Sustainable Development Goals. For
example, in 2023 PUMA reached another milestone: 7 out of 10 products were produced from better
materials such as recycled polyester. PUMA started the "Voices of a RE:GENERATION" initiative which aims
to have constant communication with GEN-Z activists and environmentalists and give feedback to our senior
management on how PUMA can further strengthen its sustainability initiatives and communicate its
sustainability efforts to young audiences. All these initiatives will help us to evolve sustainability within
PUMA and leverage corresponding business opportunities.
OVERALL ASSESSMENT OF THE RISK AND OPPORTUNITY SITUATION
The assessment of the overall risk and opportunity situation of the Group and PUMA SE is the result of a
consolidated view of the risk and opportunity categories described above for the financial year 2023.
Following the description in our 2023 combined management report, our assessment of PUMA's overall risk
situation this year is predominantly influenced by the macroeconomic environment and volatile retail
demand specially in key markets, as described above, and is focused on the major challenges these pose.
The Management Board is currently not aware of any material risks that, either individually, on an
aggregated basis or in combination with other risks, could jeopardise the continued existence of the Group
and PUMA SE.
However, we cannot exclude the possibility that in the future influencing factors, of which we are currently
unaware or which we currently do not consider to be material, could have a negative impact on the
continued existence of the Group or PUMA SE or individual consolidated companies. Also due to the
extremely solid balance sheet and the positive business outlook, the Management Board does not see any
significant threat to the continued existence of the PUMA Group and PUMA SE.
MAIN FEATURES OF THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM AS IT
RELATES TO THE GROUP'S ACCOUNTING PROCESS
The Management Board of PUMA SE is responsible for the preparation and accuracy of the annual financial
statements, the consolidated financial statements and the combined management report of PUMA SE. The
consolidated financial statements were prepared in accordance with the International Financial Reporting
Standards that apply in the EU, the requirements of the German Commercial Code (HGB), the German Stock
Corporation Act (AktG) and the German SE Implementation Act (SEAG). Certain disclosures and amounts
are based on current estimates by the Management Board and the management.
The Management Board is responsible for maintaining and regularly monitoring a suitable internal control
and risk management system covering the consolidated financial statements and the disclosures in the
combined management report. This control and risk management system is designed to ensure the
compliance and reliability of the internal and external accounting records, the presentation and accuracy of
the consolidated financial statements, and the combined management report and the disclosures contained
therein. It is based on a series of process-integrated monitoring steps and encompasses the measures
necessary to accomplish these, such as internal instructions, organisational and authorisation guidelines,
the relevant company guidelines and handbooks, a clear separation of functions within the Group and the
dual-control principle. The adequacy and operating effectiveness of these measures are regularly reviewed
by the Group Internal Audit, Risk Management & Internal Control Department.
For monthly financial reporting and consolidation, PUMA has a group-wide reporting and controlling system
that makes it possible to regularly and quickly detect deviations from projected figures and accounting
irregularities and, where necessary, to take countermeasures.
PUMA Annual Report 2023
↗ Combined Management Report
269
By means of established internal reporting channels, the risk management system can regularly identify
events that could affect the Group's economic performance and its accounting process so that it can analyse
and evaluate the resulting risks and take the necessary actions to counter them.
In preparing the consolidated financial statements and the combined management report, it is sometimes
necessary to make assumptions and estimates based on the information available at the time the financial
statements and management report are prepared that affect the amount, presentation and explanation of
recognised assets and liabilities, income and expenses, contingent liabilities, and other reportable
information.
The Audit Committee of the Supervisory Board meets on a regular basis with the independent statutory
auditors, the Management Board and the Group Internal Audit, Risk Management & Internal Control
Department to discuss the results of the internal audits and statutory audits with reference to the internal
control and risk management system as it relates to the accounting process. At the annual meeting on the
financial statements, the auditor reports to the Supervisory Board (including the Audit Committee) on the
results of the audit of the annual and consolidated financial statements.
INTERNAL CONTROL SYSTEM
PUMA's internal control system applies to all employees throughout the Group as it incorporates the
principles, procedures and measures established by PUMA Group management. All essential business
processes that support the organisational implementation of management decisions must be taken into
account.
Within the PUMA Group, the methodology of the internal control system is based on the COSO Framework,
which describes internal management and monitoring considerations for key processes within the company.
Its purpose is to support the objectives of ensuring proper financial reporting, improving the efficiency and
effectiveness of the processes and maintaining compliance with legal framework conditions.
The PUMA control framework is applied uniformly to the entire Group. The requirement here is to manage
the significant risks through appropriate control activities. The objective is to continuously improve the
internal control system and to identify specific risks and potential for improvement in the control
environment at process level in order to define appropriate recommendations for action and to
systematically track their timely implementation. Independent monitoring bodies such as the Supervisory
Board and the Audit Committee help ensure that the control environment remains up-to-date. The
Management Board of PUMA SE bears overall responsibility for the internal control system. The
Management Board regularly updates the Audit Committee of the Supervisory Board of PUMA SE. The
internal control function of the Group Internal Audit, Risk Management & Internal Control Department has
been tasked with preparing regular reports for the Management Board in order to help coordinate the
internal control system from an operational perspective. The responsibilities, tasks and processes of the
internal control system are defined in guidelines.
With regard to the PUMA control framework, the following five core components must be kept in mind:
control environment, risk assessment, control activities, information and communication, and monitoring
activities.
PUMA Annual Report 2023
↗ Combined Management Report
270
↗ G.21 INTERNAL CONTROL SYSTEM
The internal control system is based on the control environment established within the PUMA Group, in that
it lays out principles for employee and management behavior within the company. The standards practiced
are underpinned by internally formalised procedures and by clear guidelines on giving instructions and
authorisations to do so. Together with external regulations, these internal standards form a control
environment that applies to all employees of the PUMA Group, supported by the relevant management and
the process manager in the entities.
As described in the previous section headed "Risk Management," the PUMA Group is also subject to a large
number of risks that may potentially impact on company goals. Risk identification and assessment is
carried out every six months in order to manage material risks at Group level. Using the resulting risk
portfolio, the objective of the internal control system is to ensure that the compensating control measures
fully correspond to the risk assessment/evaluation. In addition, the internal control system's risk
assessment also includes a large number of more detailed risks in day-to-day operations – for example,
operational activities in accordance with compliance regulations.
Control activities serve to counteract the identified business risks. In order to ensure that the control
framework is continuously up-to-date and to monitor its application in business processes, an annual
"Internal Control Self-Assessment" (ICSA) is completed by the key business units of the PUMA Group. The
internal control function ensures that the key business units - at parent and subsidiary company level - are
included in the ICSA. The managers of these business units evaluate the specified control objectives of the
PUMA Group in relation to their business area. When doing so, the existing control framework is assessed
based on internal and external guidelines and best-practice standards. Based on the responses, a level of
implementation of the controls is determined, which undergoes independent verification by the Internal
Control function and is then communicated to the Management Board using established reporting channels.
The results of the ICSA are also reported to the Audit Committee and the statutory auditors and are used by
the internal audit function of the Group Internal Audit, Risk Management & Internal Control Department in
risk-oriented audit planning.
The purpose of informing and communicating potential business risks and control activities is to help make
sound business decisions, with the information required to do so being accessible within an appropriate and
timely framework. Established communication channels are continuously used in the PUMA Group to
achieve this. The internal control function coordinates awareness training and regular coordination
meetings in order to continuously guarantee, and also strengthen, its cooperation with the Management
Board and other managers of business units.
Control
Activities
Risk
Assessment
Information &
Communication
Monitoring
Activities
PUMA Annual Report 2023
↗ Combined Management Report
271
The use of a standardised software system as the basis for monitoring activities is intended to ensure the
systematic and uniform implementation of ICSA across the entire company. The internal control function
analyses the results of the ICSA and derives recommended actions, which are coordinated with the
managers of the business units and the implementation status of which is reviewed and monitored
continuously.
┌
The Management Board also monitors the effectiveness of the risk management and internal control
system in a holistic manner. Accordingly, key aspects of the systems are reviewed on a quarterly basis as
part of cyclical reporting. This is to ensure that material risks are managed with an appropriate level of
transparency, that individual issues are discussed in an appropriate form and can be tracked, and that
possible improvements to the systems are considered. Supported by an established control environment,
the continuous system monitoring, and improvement reflects the PUMA Group's open risk culture. During
the reporting period, PUMA SE was not aware of any relevant circumstances that cast doubt on the
adequacy and effectiveness of the risk management and internal control systems nor that had not been
rectified by the balance sheet date. Nevertheless, it is worth noting that even systems that have been
characterised as appropriate and effective are subject to inherent limitations. As such, it is not possible to
guarantee the complete prevention of any procedural violations and/or risks arising.
└
PUMA Annual Report 2023
↗ Combined Management Report
272
OUTLOOK REPORT
GLOBAL ECONOMY
In their winter forecast dated 13 December 2023, experts at the Kiel Institute for the World Economy (Kiel
Institut für Weltwirtschaft – IfW Kiel) expect global gross domestic product (GDP) to increase by 2.9% in
2024, following growth of 3.1% in 2023. Meanwhile, inflation is rapidly on the decline, and central banks are
expected to start cutting interest rates in the first half-year of 2024. However, there are currently no
prospects of an economic upturn. A high level of uncertainty about the economic conditions is slowing
things down in the advanced economies, and fiscal incentives are tapering out. In China, economic
momentum remains subdued, in view of structural issues. According to experts at IfW Kiel, the risks to the
economic forecast for 2024 are primarily financial and political in nature. Among other things, there is
uncertainty about developments in China, where orderly consolidation in the property sector is still not
guaranteed. In addition, geopolitical risks have stemmed from the increasingly prominent differences
between China and the United States. Irrespective of this, the outcome of the upcoming presidential
elections in the United States in November harbours considerable economic and political uncertainty.
SPORTING GOODS INDUSTRY
Unless the geopolitical environment has any significant negative impact on the overall economic
environment, we expect growth in the sporting goods industry in 2024. We expect demand for sporting goods
to increase in 2024 as the trend towards increased sports activities and healthier lifestyles continues and
becomes even more significant following the COVID-19 pandemic. This applies equally to the increasing
popularity of athletic footwear and leisure/athletic apparel as an integral part of everyday fashion
("athleisure"). We also assume that major sporting events in the coming year, such as the Summer
Olympics in Paris and the UEFA Euro 2024 men's football championship in Germany, will help to support
growth in the sporting goods industry.
OUTLOOK 2024
We expect geopolitical and macroeconomic headwinds as well as currency volatility to persist in 2024. These
conditions already led to muted consumer sentiment and volatile demand in 2023 and we expect these
effects to continue in 2024, particularly in the first half of the year.
In this continued challenging environment, we are fully focused on executing our strategic priorities:
elevating the brand, increasing product excellence and improving our distribution quality - especially in the
key markets US and China. For us, 2024 is not only the year of sport with major events such as the Olympic
Games, Euro 2024 and the Copa America providing the perfect platform to showcase our strong product
innovation and credibility as a performance brand. It is also the year in which PUMA will invest in a new
global brand campaign to improve its positioning as the fastest sports brand in the world.
Supported by the continued brand momentum and despite ongoing global geopolitical and macroeconomic
challenges, PUMA expects to achieve mid-single-digit currency-adjusted sales growth and an operating
result (EBIT) in the range of € 620 million to € 700 million for the financial year 2024 (2023: € 621.6 million).
The outlook assumes that the future devaluation of the Argentine peso will be fully compensated by
corresponding price increases in Argentina.
PUMA Annual Report 2023
↗ Combined Management Report
273
We expect net income (2023: € 304.9 million) to change in 2024 in line with the operating result.
As in previous years, PUMA will continue to focus on managing short-term challenges without
compromising the brand's medium- and long-term momentum. Our sales growth and market share gains
will take priority over short-term profitability. The exciting product range for 2024 and the very good
feedback from retail partners as well as consumers give us confidence for the medium- and long-term
success and continued growth of PUMA.
INVESTMENTS
Investments in fixed assets of around € 300 million are planned for 2024. The majority of these investments
will be in infrastructure in order to create the operating conditions required for the planned long-term
growth. The investments mainly concern own distribution and logistics centers, investments in the
expansion and modernisation of the Group's own retail stores and investments in IT infrastructure.
FOUNDATION FOR LONG-TERM GROWTH
The Management Board and the Supervisory Board have set long-term strategic priorities. Action plans are
being implemented in a targeted and value-oriented manner. We believe that the corporate strategy
"Forever Faster" provides the basis for mid- and long-term positive development.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
This is a translation of the German version. In case of doubt, the German version shall apply.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
274
CONSOLIDATED FINANCIAL STATEMENTS
PUMA SE FOR FINANCIAL YEAR 2023
– INTERNATIONAL FINANCIAL REPORTING STANDARDS – IFRS
Consolidated Statement of Financial Position
275
Consolidated Income Statement
277
Consolidated Statement of Comprehensive Income 278
2
281
282
302
351
357
372
Consolidated Statement of Cash Flows
Statement of Changes in Equity
Notes to the Consolidated FLQDQFLDOStatements
Notes to the Consolidated Statement of
Financial Position
Notes to the Consolidated Income Statement
Additional information
Declaration by the Legal Representatives
Independent Auditor's Report
373
PUMA Annual Report 2023
↗ Consolidated Financial Statements
275
CONSOLIDATED FINANCIAL STATEMENTS
↗ T.01 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 Dec. 2023
31 Dec. 2022
Notes
€ million
€ million
ASSETS
Cash and cash equivalents
3
552.9
463.1
Inventories
4
1,804.4
2,245.1
Trade receivables
5
1,118.4
1,064.9
Income tax receivables
22
90.1
54.0
Other current financial assets
6
94.9
137.4
Other current assets
7
270.4
235.9
Current assets
3,931.1
4,200.4
Deferred tax assets
8
296.1
295.0
Property, plant and equipment
9
685.6
592.2
Right-of-use assets
10
1,087.7
1,111.3
Intangible assets
11
530.8
506.5
Other non-current financial assets
12
83.6
58.4
Other non-current assets
12
25.6
8.8
Non-current assets
2,709.3
2,572.3
Total assets
6,640.4
6,772.7
PUMA Annual Report 2023
↗ Consolidated Financial Statements
276
31 Dec. 2023
31 Dec. 2022
Notes
€ million
€ million
LIABILITIES AND EQUITY
Current borrowings
13
145.9
75.9
Trade payables
13
1,499.8
1,734.9
Income tax liabilities
22
79.3
86.8
Current lease liabilities
10
212.4
200.2
Other current provisions
16
27.7
50.3
Other current financial liabilities
13
78.6
76.1
Other current liabilities
13
493.4
618.9
Current liabilities
2,537.2
2,843.0
Non-current borrowings
1
13
426.1
251.5
Non-current lease liabilities
10
1,020.0
1,030.3
Deferred tax liabilities
8
12.4
42.0
Pension provisions
15
22.5
22.4
Other non-current provisions
16
27.3
29.5
Other non-current financial liabilities
13
11.4
13.8
Other non-current liabilities
13
1.3
1.4
Non-current liabilities
1,520.9
1,390.9
Subscribed capital
17
150.8
150.8
Capital reserve
17
93.8
90.8
Other reserves
17
2,330.4
2,253.6
Treasury stock
17
-21.6
-23.5
Equity attributable to the shareholders of PUMA SE
2,553.4
2,471.7
Non-controlling interests
17, 28
28.9
67.1
Total equity
2,582.3
2,538.8
Total liabilities and equity
6,640.4
6,772.7
1)
In order to improve the communication of decision-relevant information, non-current borrowings are no longer
reported under other non-current financial liabilities in the 2023 reporting year, but are reported in a separate
balance sheet item. The previous year's figures have been adjusted accordingly.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
277
↗ T.02 CONSOLIDATED INCOME STATEMENT
2023
2022
Notes
€ million
€ million
Sales
19, 24
8,601.7
8,465.1
Cost of sales
24
-4,615.1
-4,562.3
Gross profit
24
3,986.6
3,902.7
Royalty and commission income
38.5
33.8
Other operating income and expenses
20
-3,403.5
-3,295.9
thereof impairment losses on trade receivables and other financial
assets
-12.2
-4.4
Operating Result (EBIT)
621.6
640.6
Financial income
21
112.7
79.4
Financial expenses
21
-256.0
-168.3
Financial result
-143.3
-88.9
Earnings before taxes (EBT)
478.3
551.7
Taxes on income
22
-117.8
-127.4
Consolidated net income of the year
360.6
424.4
attributable to:
Non-controlling interests
17, 28
55.7
70.9
Net income attributable to the shareholders of PUMA SE
304.9
353.5
Earnings per share (€)
23
2.03
2.36
Earnings per share (€) - diluted
23
2.03
2.36
Weighted average number of outstanding shares (million shares)
23
149.85
149.65
Weighted average number of outstanding shares, diluted (million shares)
23
149.87
149.66
PUMA Annual Report 2023
↗ Consolidated Financial Statements
278
↗ T.03 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2023
2022
€ million
€ million
Consolidated net income of the year before attribution
360.6
424.4
Currency translation differences
-87.6
68.5
Net gain/ loss on cash flow hedges, net after tax
-18.0
-64.5
Items expected to be reclassified to the income statement in the future
-105.6
4.0
Remeasurements of the net defined benefit liability, net after tax
-0.8
7.6
Neutral effects financial assets through other comprehensive income (FVOCI), net after tax
-0.5
-3.4
Items not expected to be reclassified to the income statement in the future
-1.3
4.2
Other comprehensive income
-106.9
8.2
Comprehensive income
253.7
432.6
attributable to:
Non-controlling interests
54.2
75.0
Shareholders of PUMA SE
199.6
357.6
PUMA Annual Report 2023
↗ Consolidated Financial Statements
279
↗ T.04 CONSOLIDATED STATEMENT OF CASH FLOWS
2023
2022
Notes
€ million
€ million
Operating activities
Earnings before tax (EBT)
478.3
551.7
Adjustments for:
Depreciation and impairment
9, 10, 11
357.5
358.7
Reversal of impairment losses
9, 10, 11
-11.9
0.0
Non-realized currency gains/losses, net
60.1
-43.6
Financial income
21
-37.8
-32.3
Financial expenses
21
100.7
54.4
Gains/losses from the sale of fixed assets
-3.9
1.0
Changes to pension provision
15
-1.5
0.5
Other non cash effected expenses/income
22.5
28.6
Gross cash flow
25
964.1
918.9
Changes in receivables and other current assets
5, 6, 7
-153.4
-209.4
Changes in inventories
4
352.1
-747.0
Changes in trade payables and other current liabilities
13
-327.9
613.1
Net cash from operational business activities
834.9
575.6
Income taxes paid
22
-181.3
-157.4
Net cash from operating activities
25
653.6
418.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
280
2023
2022
Notes
€ million
€ million
Investing activities
Purchase of property and equipment
9, 11
-300.4
-263.6
Proceeds from sale of property and equipment
14.3
1.3
Payment for other assets
12
-36.3
-10.8
Interest received
21
37.8
32.3
Net cash used in investing activities
-284.6
-240.8
Financing activities
Repayment of lease liabilities
10
-208.0
-190.0
Repayment of current borrowings
13
-59.1
-9.5
Raising of current borrowings
13
0.0
17.9
Repayment of non-current borrowings
13
0.0
-60.0
Raising of non-current borrowings
13
299.6
0.0
Dividend payments to shareholders of PUMA SE
17
-122.8
-107.7
Dividend payments to non-controlling interests
17, 28
-92.4
-73.3
Interest paid
21
-94.3
-53.8
Net cash used in financing activities
25
-277.1
-476.4
Exchange rate-related changes in cash and cash equivalents
-2.1
4.4
Change in cash and cash equivalents
89.8
-294.4
Cash and cash equivalents at beginning of the financial year
463.1
757.5
Cash and cash equivalents at the end of the financial year
3, 25
552.9
463.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
281
↗ T.05 STATEMENT OF CHANGES IN EQUITY (in € million)
Other reserves
Subscribed
capital
Capital
reserve
Revenue
reserves incl.
retained
earnings
Difference
from currency
conversion
Cash flow
hedges
Treasury stock
Shareholders'
equity
Non-
controlling
interests
TOTAL equity
1 January 2022
150.8
86.4
2,245.4
-320.6
78.1
-26.9
2,213.3
65.2
2,278.5
Consolidated net income of the year
353.5
353.5
70.9
424.4
Other comprehensive income
4.2
63.8
-63.9
4.1
4.1
8.2
Comprehensive income
357.7
63.8
-63.9
357.6
75.0
432.6
Dividends paid to shareholders of PUMA SE / non-
controlling interests
-107.7
-107.7
-75.3
-183.0
Share-based payment and Utilization/Issue of
treasury stock
4.4
3.4
7.7
7.7
Transaction with shareholders
0.9
0.9
2.2
3.1
31 December 2022/ 1 January 2023
150.8
90.8
2,496.2
-256.8
14.2
-23.5
2,471.7
67.1
2,538.8
Consolidated net income of the year
304.9
304.9
55.7
360.6
Other comprehensive income
-1.3
-85.9
-18.1
-105.3
-1.5
-106.9
Comprehensive income
303.6
-85.9
-18.1
199.6
54.2
253.7
Dividends paid to shareholders of PUMA SE / non-
controlling interests
-122.8
-122.8
-92.4
-215.3
Share-based payment and Utilization/Issue of
treasury stock
3.0
1.9
4.9
4.9
Transaction with shareholders
0.1
0.1
31 December 2023
150.8
93.8
2,677.0
-342.7
-3.9
-21.6
2,553.4
28.9
2,582.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
282
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
1. GENERAL
Under the PUMA and Cobra Golf brand names, PUMA SE and its subsidiaries are engaged in the
development and sale of a broad range of sports and sports lifestyle products, including footwear, apparel
and accessories. The company is a European stock corporation (Societas Europaea/SE) and parent company
of the PUMA Group; its registered office is on PUMA WAY 1, 91074 Herzogenaurach, Germany. The competent
registry court is in Fürth (Bavaria), the register number is HRB 13085.
The consolidated financial statements of PUMA SE and its subsidiaries (hereinafter referred to in short as
the "Group" or "PUMA") were prepared in accordance with the "International Financial Reporting Standards
(IFRS)" accounting standards issued by the International Accounting Standards Board (IASB), as they are to
be applied in the EU, and the supplementary accounting principles to be applied in accordance with Section
315e(1) of the German Commercial Code (HGB). All of the IASB standards and interpretations, as they are to
be applied in the EU, which are mandatory for financial years as of 1 January 2023, have been applied.
The items contained in the financial statements of the individual Group companies are measured based on
the currency that corresponds to the currency of the primary economic environment in which the Company
operates. The consolidated financial statements are prepared in euros (EUR or €). The presentation of
amounts in millions of euros with one decimal place may lead to rounding differences since the calculation
of individual items is based on figures presented in thousands.
The cost of sales method is used for the consolidated income statement.
The following new or amended standards and interpretations have been used for the first time in the
current financial year:
↗ T.06 NEW AND AMENDED STANDARDS AND INTERPRETATIONS
Standard
Title
First-time adoption in the current financial
year
IFRS 17 (including amendment IFRS 17)
Insurance contracts
Amendments to IAS 1
Disclosure of accounting policies
Amendments to IAS 8
Definition of accounting estimates
Amendments to IAS 12
Deferred taxes relating to assets and liabilities from a single transaction
Amendments to IFRS 17
First-time application of IFRS 17 and IFRS 9 – Comparative information
Amendments to IAS 12
International tax reform – Pillar Two model rules
PUMA Annual Report 2023
↗ Consolidated Financial Statements
283
The amendments to the standards and interpretations described below, which were to be initially adopted
as of 1 January 2023, did not materially affect the PUMA consolidated financial statements.
The IFRS 17 standard regulates the accounting treatment of insurance contracts and replaces the previously
valid transitional standard IFRS 4. The scope of application includes insurance contracts, reinsurance
contracts and investment contracts with discretionary participation features. The amendment to IFRS 17
postponed the date of first mandatory application of IFRS 17 to 1 January 2023. These amendments have no
effect on the PUMA consolidated financial statements.
The amendments to IAS 1 and IFRS Guideline Document 2 are intended to assist preparers in deciding which
accounting policies they must disclose in the financial statements. This requires an enterprise to disclose
essential information relating to accounting policies rather than just its significant accounting policies. This
change has no material effect on the PUMA consolidated financial statements.
The amendment to IAS 8 is intended to help distinguish between accounting policies and accounting-related
estimates. The definition of a change in accounting estimates has been replaced by a definition of
accounting estimates. According to the new definition, accounting-related estimates are "monetary
amounts in financial statements that are subject to measurement uncertainty". This change has no effect on
the PUMA consolidated financial statements.
The amendment to IAS 12 narrows the scope of the "initial recognition exemption" under which no deferred
tax assets or liabilities are to be recognised at the time of recognition of an asset or liability. If temporary
differences of the same amount are simultaneously deductible and taxable in a single transaction, they are
no longer covered by the exception, meaning that deferred tax assets and liabilities must be recognised.
This change does not materially affect PUMA's net assets, financial position and results of operations.
However, the amendment to IAS 12 leads to a change in the disclosures to be made in the notes to the
consolidated financial statements.
The amendment to IFRS 17 concerns companies that apply IFRS 17 and IFRS 9 simultaneously for the first
time. The amendment allows an entity to present comparative information about a financial asset in such a
way that the IFRS 9 rules on classification and measurement would have been previously applied to that
financial asset. This change has no effect on the PUMA consolidated financial statements.
The amendments to IAS 12 introduce a temporary exemption for deferred tax accounting in the framework of
the implementation of the global minimum taxation ("OECD Pillar Two Scheme"). This should help to ensure
the consistency of financial statements while facilitating implementation of the rules. Targeted disclosure
requirements will also be introduced to help investors better understand the impact of the reform on the
company, especially before the country-specific legislation implementing minimum taxation enters into
force. This change has no material effect on the PUMA consolidated financial statements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
284
NEW, BUT NOT YET MANDATORY, STANDARDS AND INTERPRETATIONS
The following standards and interpretations have been released but will only become effective in later
reporting periods and are not applied earlier by the Group:
↗ T.07 NEW, BUT NOT YET MANDATORY, STANDARDS AND INTERPRETATIONS
Standard
Title
Date of adoption*
Planned adoption
Endorsed
Amendments to IFRS 16
Lease liabilities as part of a
sale and leaseback
transaction
01/01/2024
01/01/2024
Endorsement pending
Amendments to IAS 1
Classification of liabilities as
current or non-current
01/01/2024
01/01/2024
Amendments to IAS 1
Non-current liabilities with
covenants
01/01/2024
01/01/2024
Amendments to IAS 7 and
IFRS 7
Supplier financing
agreements
01/01/2024
01/01/2024
Amendments to IAS 21
Lack of exchangeability
01/01/2025
01/01/2025
Amendments to IFRS 10 and
IAS 28
Sale or contribution of
assets
Postponed indefinitely
*
Adjusted by EU endorsement, if applicable
PUMA does not expect that these amendments will have any significant effects on the net assets, financial
position and results of operations. However, the amendments to IAS 7 and IFRS 17 concerning supplier
financing agreements expand the scope of future disclosures in the notes to the consolidated financial
statements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
285
2. SIGNIFICANT CONSOLIDATION, ACCOUNTING AND VALUATION PRINCIPLES
CONSOLIDATION PRINCIPLES
The consolidated financial statements were prepared as of 31 December 2023, the reporting date of the
annual financial statements of the PUMA SE parent company, on the basis of uniform accounting and
valuation principles according to IFRS, as applied in the EU.
GROUP OF CONSOLIDATED COMPANIES
In addition to PUMA SE, the consolidated financial statements include all subsidiaries in which PUMA SE
directly or indirectly holds existing rights that give it the current ability to direct the relevant activities. At
present, control of all Group companies is based on a direct or indirect majority of voting rights.
Associated companies are generally accounted for in the Group using the equity method. As of 31
December 2023, however, the Group does not hold any investments in associated companies.
The changes in the number of Group companies (including the parent company PUMA SE) in the financial
year 2023 were as follows:
↗ T.08 GROUP OF CONSOLIDATED COMPANIES
As of
31 Dec. 2022
100
Formation of companies
1
Disposal of companies
-1
As of
31 Dec. 2023
100
The addition to the group of consolidated companies relates to the formation of PUMA Card Services NA
LLC, USA.
The disposal in the group of consolidated companies concerns the merger of PUMA Sports SEA Trading Pte.
Ltd., Singapore within the group of consolidated companies.
The changes in the group of consolidated companies did not have a significant effect on the net assets,
financial position and results of operations.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
286
The Group companies are allocated to regions as follows:
↗ T.09 LIST OF SHAREHOLDINGS
AS OF 31 DECEMBER 2023
No.
Companies/Legal Entities
Country
City
Shareholder
Share of capital
Parent company
1.
PUMA SE
Germany
Herzogenaurach
EMEA
2.
Austria Puma Dassler Gesellschaft m.b.H.
Austria
Salzburg
direct
100%
3.
stichd austria gmbh
Austria
Salzburg
indirect
100%
4.
Puma Czech Republic s.r.o.
Czech Republic
Prague
indirect
100%
5.
PUMA DENMARK A/S
Denmark
Aarhus
indirect
100%
6.
PUMA Estonia OÜ
Estonia
Tallinn
indirect
100%
7.
PUMA Finland Oy
Finland
Helsinki
indirect
100%
8.
PUMA FRANCE SAS
France
Strasbourg
indirect
100%
9.
stichd france SAS
France
Boulogne Billancourt
indirect
100%
10.
PUMA International Trading GmbH
Germany
Herzogenaurach
direct
100%
11.
PUMA Europe GmbH
Germany
Herzogenaurach
direct
100%
12.
PUMA Sprint GmbH
Germany
Herzogenaurach
direct
100%
13.
PUMA Mostro GmbH
Germany
Herzogenaurach
indirect
100%
14.
PUMA Blue Sea GmbH
Germany
Herzogenaurach
indirect
100%
15.
stichd germany gmbh
Germany
Düsseldorf
indirect
100%
16.
PUMA UNITED KINGDOM LTD
Great Britain
London
indirect
100%
17.
PUMA PREMIER LTD
Great Britain
London
indirect
100%
18.
STICHD UK LTD
Great Britain
Mansfield
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
287
AS OF 31 DECEMBER 2023
19.
STICHD SPORTMERCHANDISING UK LTD
Great Britain
London
indirect
100%
20.
GENESIS GROUP INTERNATIONAL LIMITED
Great Britain
Manchester
direct
100%
21.
Sport Equipment Hellas S. A. of Footwear, Apparel and Sportswear u.Li.
Greece
Athens
direct
100%
1)
22.
PUMA ITALIA S.R.L.
Italy
Assago
indirect
100%
23.
STICHD ITALY SRL
Italy
Assago
indirect
100%
24.
Puma Sport Israel Ltd. In Liq
Israel
Hertzeliya
indirect
100%
25.
Puma Benelux B.V.
Netherlands
Leusden
direct
100%
26.
PUMA International Sports Marketing B.V.
Netherlands
Leusden
direct
100%
27.
stichd group B.V.
Netherlands
s-Hertogenbosch
direct
100%
28.
stichd international B.V.
Netherlands
s-Hertogenbosch
indirect
100%
29.
stichd sportmerchandising B.V.
Netherlands
s-Hertogenbosch
indirect
100%
30.
stichd B.V.
Netherlands
s-Hertogenbosch
indirect
100%
31.
stichd logistics B.V.
Netherlands
s-Hertogenbosch
indirect
100%
32.
stichd licensing B.V.
Netherlands
s-Hertogenbosch
indirect
100%
33.
PUMA NORWAY AS
Norway
Fornebu
indirect
100%
34.
PUMA POLSKA sp. z o.o.
Poland
Warsaw
indirect
100%
35.
PUMA SPORTS ROMANIA SRL
Romania
Voluntari
indirect
100%
36.
PUMA-RUS o.o.o.
Russia
Moscow
indirect
100%
37.
PUMA SPORTS DISTRIBUTORS (PTY) LTD
South Africa
Cape Town
indirect
100%
38.
PUMA SPORTS S A (PTY) LTD
South Africa
Cape Town
indirect
100%
39.
PUMA IBERIA SLU
Spain
Madrid
direct
100%
40.
STICHDIBERIA S.L.
Spain
Cornella de Llobregat
indirect
100%
41.
Nrotert AB
Sweden
Helsingborg
direct
100%
42.
PUMA Nordic AB
Sweden
Helsingborg
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
288
AS OF 31 DECEMBER 2023
43.
Nrotert Sweden AB
Sweden
Helsingborg
indirect
100%
44.
stichd nordic AB
Sweden
Helsingborg
indirect
100%
45.
MOUNT PUMA AG
Switzerland
Oensingen
direct
100%
46.
Puma Retail AG
Switzerland
Oensingen
indirect
100%
47.
stichd switzerland ag
Switzerland
Egerkingen
indirect
100%
48.
PUMA Spor Giyim Sanayi ve Ticaret A.S.
Türkiye
Istanbul
indirect
100%
49.
PUMA UKRAINE LIMITED LIABILITY COMPANY
Ukraine
Kiew
indirect
100%
50.
PUMA Middle East FZ-LLC
United Arab Emirates
Dubai
indirect
100%
51.
PUMA UAE (L.L.C)
United Arab Emirates
Dubai
indirect
100%
Americas
52.
PUMA Sports Argentina S.A. (former Unisol S.A.)
Argentina
Buenos Aires
indirect
100%
53.
PUMA Sports Ltda.
Brazil
Sao Paulo
indirect
100%
54.
PUMA Canada, Inc.
Canada
Toronto
indirect
100%
55.
PUMA United Canada ULC
Canada
Vancouver
indirect
51%
56.
PUMA CHILE SpA
Chile
Santiago
direct
100%
57.
PUMA SERVICIOS SpA
Chile
Santiago
indirect
100%
58.
PUMA México Sport, S.A. de C.V.
Mexico
Mexico City
direct
100%
59.
Importaciones RDS, S.A. de C.V.
Mexico
Mexico City
direct
100%
60.
GLOBAL LICENSE STICHD GROUP MEXICO S.A. de C.V.
Mexico
Mexico City
indirect
100%
61.
Importationes Brand Plus Licensing S.A. de C.V.
Mexico
Mexico City
indirect
100%
62.
Distribuidora Deportiva PUMA S.A.C.
Peru
Lima
indirect
100%
63.
Distribuidora Deportiva PUMA Tacna S.A.C.
Peru
Tacna
indirect
100%
64.
PUMA Sports LA S.A.
Uruguay
Montevideo
direct
100%
65.
PUMA Suede Holding, Inc.
USA
Wilmington
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
289
AS OF 31 DECEMBER 2023
66.
PUMA North America, Inc.
USA
Wilmington
indirect
100%
67.
Cobra Golf Incorporated
USA
Wilmington
indirect
100%
68.
PUMA United Aviation North America LLC
USA
Wilmington
indirect
70%
69.
PUMA United Canada Holding, Inc.
USA
Wilmington
indirect
100%
70.
PUMA United North America LLC
USA
Dover
indirect
51%
71.
Janed Canada, LLC
USA
Dover
indirect
51%
72.
stichd NA, Inc.
USA
Lewes
indirect
100%
73.
PUMA Card Services NA, LLC.
USA
Plantation
indirect
100%
Asia/Pacific
74.
PUMA Australia Pty. Ltd.
Australia
Melbourne
indirect
100%
75.
White Diamond Australia Pty. Ltd.
Australia
Melbourne
indirect
100%
76.
White Diamond Properties Pty. Ltd.
Australia
Melbourne
indirect
100%
77.
PUMA China Ltd. (彪⻢（上海）商贸有限公司)
China
Shanghai
indirect
100%
78.
stichd Trading (Shanghai) Co., Ltd. (斯梯起特贸易（上海）有限公司)
China
Shanghai
indirect
100%
79.
Guangzhou World Cat Information Consulting Services Company Ltd. (广州寰
彪信息咨询服务有限公司)
China
Guangzhou
indirect
100%
80.
World Cat Ltd. (寰彪有限公司)
China
Hong Kong
direct
100%
81.
Development Services Ltd.
China
Hong Kong
direct
100%
82.
PUMA International Trading Services Ltd.
China
Hong Kong
indirect
100%
83.
PUMA ASIA PACIFIC LTD (彪馬亞太區有限公司)
China
Hong Kong
direct
100%
84.
PUMA Hong Kong Ltd. (彪馬香港有限公司)
China
Hong Kong
indirect
100%
85.
stichd Limited
China
Hong Kong
indirect
100%
86.
PUMA Sports India Private Ltd.
India
Bangalore
indirect
100%
87.
PT PUMA Cat Indonesia
Indonesia
Jakarta
indirect
100%
88.
PT PUMA Sports Indonesia
Indonesia
Jakarta
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
290
AS OF 31 DECEMBER 2023
89.
PUMA Japan K.K. (プーマ ジャパン株式会社)
Japan
Tokyo
indirect
100%
90.
PUMA Korea Ltd. (푸마코리아 유한회사)
(South) Korea
Seoul
direct
100%
91.
Stichd Korea Ltd
(South) Korea
Incheon
indirect
100%
92.
PUMA Sports Goods Sdn. Bhd.
Malaysia
Petaling Jaya
indirect
100%
93.
STICHD SOUTHEAST ASIA SDN. BHD.
Malaysia
Kuala Lumpur
indirect
100%
94.
PUMA New Zealand Ltd.
New Zealand
Auckland
indirect
100%
95.
PUMANILA IT SERVICES INC.
Philippines
City of Makati
indirect
100%
96.
PUMA Sports Philippines Inc.
Philippines
City of Makati
indirect
100%
97.
PUMA SOUTH EAST ASIA PTE. LTD.
Singapore
indirect
100%
98.
PUMA Taiwan Sports Ltd. (台灣彪馬股份有限公司）
China (Taiwan)
Taipei
indirect
100%
99.
PUMA Sports (Thailand) Co., Ltd.
Thailand
Bangkok
indirect
100%
100.
World Cat Vietnam Sourcing & Development Services Company Limited
(CÔNG TY TNHH DͥCH VͿ PHÁT TRI͝N & NGUͭN CUNG NG WORLD CAT
VI͡T NAM)
Vietnam
Ho Chi Minh City
indirect
100%
1)
subsidiaries which are assigned to be economically 100% PUMA Group
PUMA 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
(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
from the third subsection.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
291
CURRENCY CONVERSION
In general, monetary items in foreign currencies are converted in the individual financial statements of the
Group companies at the exchange rate valid on the balance sheet date. Any resulting currency gains and
losses are immediately recognised in the income statement. Non-monetary items are converted at
historical acquisition and manufacturing cost.
The assets and liabilities of foreign subsidiaries, whose functional currency is not the euro, have been
converted to euros at the exchange rates valid on the balance sheet date. Expenses and income have been
converted at the annual average exchange rates. Any differences resulting from the currency conversion of
net assets relative to exchange rates that had changed in comparison with the previous year were adjusted
directly in other comprehensive income.
The significant conversion rates per euro are as follows:
↗ T.10 SIGNIFICANT CONVERSION RATES
2023
2022
Currency
Reporting date
exchange rate
Average
exchange rate
Reporting date
exchange rate
Average
exchange rate
USD
1.1050
1.0813
1.0666
1.0530
CNY
7.8509
7.6600
7.3582
7.0788
JPY
156.3300
151.9903
140.6600
138.0274
MXN
18.7231
19.1830
20.8560
21.1869
ARS*
892.9166
-
188.7249
-
GBP
0.8691
0.8698
0.8869
0.8528
*
Due to the application of accounting for hyperinflationary economies in Argentina, all items in the financial
statements are converted at the exchange rate applicable on the reporting date.
Argentina and Türkiye are in a hyperinflation environment. In 2022, the subsidiaries whose functional
currency is the Argentine peso or the Turkish lira applied the accounting for hyperinflationary economies in
accordance with IAS 29 for the first time, with retroactive effect from 1 January 2022. The carrying amounts
of non-monetary assets and liabilities, shareholders' equity and other comprehensive income are translated
into the unit of measurement applicable at the balance sheet date and thus adjusted to reflect price
changes. The financial statements are based on the concept of historical acquisition and/or production
costs. The exchange rate as of 31 December 2023 was used for conversion into the reporting currency, the
euro, for all items.
Gains and losses on the net monetary position are included in the financial result. In the financial year 2023,
the net profit from the monetary items amounted to € 7.7 million (previous year: € 0.9 million). The amount
also includes interest income from invested liquid funds in accordance with IAS 29.28.
The price index used for Türkiye as of 31 December 2023 was 1,859.4 (31 December 2022: 1,128.5) and is based
on the consumer price index. The general price index used for Argentina as of 31 December 2023 was
3,500.4 (31 December 2022: 1,134.3).
PUMA Annual Report 2023
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292
ACCOUNTING AND VALUATION PRINCIPLES
FINANCIAL INSTRUMENTS
Financial instruments are classified and recognised in accordance with IFRS 9. Acquisitions and disposals of
financial assets, with the exception of trade receivables, are initially recognised on the settlement date and
are recorded at fair value.
For investments (equity instruments), IFRS 9 allows a measurement at fair value through other
comprehensive income (FVOCI) under certain conditions. If these investments, however, are disposed of or
adjusted in value, the gains and losses from these investments which were not realised up to this point are
reclassified to retained earnings in accordance with IFRS 9.
DERIVATIVE FINANCIAL INSTRUMENTS/HEDGE ACCOUNTING
In relation to the accounting of hedge relationships, PUMA made use of the option to continue applying the
rules of IAS 39 for hedge accounting.
Derivative financial instruments are recognised at fair value at the time a contract is entered into and
thereafter. At the time a hedging instrument is concluded, PUMA classifies the derivatives either as hedges
of a planned transaction and hedging variable interest flows from the promissory note loans (cash flow
hedge accounting), or as hedges of the fair value of a recognised asset or liability (fair value hedge).
At the time when the transaction is concluded, the hedging relationship between the hedging instrument
and the underlying transaction as well as the purpose of risk management and the underlying strategy are
documented. In addition, assessments as to whether the derivatives used in the hedge accounting
compensate effectively for a change in the fair value or the cash flow of the underlying transaction are
documented at the beginning of the hedging relationship and continuously thereafter.
The Group designates the spot rate for forward transactions and the intrinsic value for options contracts.
The interest component and/or fair value are excluded from the designation of the hedging instrument and
are recorded in the financial result through profit or loss.
The Group determines the existence of an economic relationship between the hedging instrument and the
hedged underlying transaction on the basis of the key valuation parameters, such as the reference interest
rate, the currency, the amount and the time of their respective cash flows (critical terms match method).
The Group uses the cumulative dollar offset method to assess whether the derivative designated in each
hedging relationship is expected to be prospectively effective and retroactively effective in relation to
offsetting changes in the cash flows of the hedged underlying transaction.
The main reason for ineffectiveness is the decline or loss of hedged transactions in these hedging
relationships.
Changes in the market value of derivatives that are intended and suitable for cash flow hedging and that
prove to be effective are adjusted directly in other comprehensive income, taking into account deferred
taxes. If there is no complete effectiveness, the ineffective part is recognised in the income statement. The
amounts recognised in other comprehensive income are recognised in the income statement during the
same period in which the hedged planned transaction affects the income statement. If, however, a hedged
future transaction results in the recognition of a non-financial asset or a liability, gains or losses previously
recorded in other comprehensive income are included in the initial measurement of the acquisition costs of
the respective asset or liability.
Changes in the market value of derivatives that qualify for and are designated as fair value hedges are
recognised directly in the consolidated income statement, together with changes in the fair value of the
underlying transaction attributable to the hedged risk. The changes in the market value of the derivatives
PUMA Annual Report 2023
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293
and the change in the underlying transaction attributable to the hedged risk are reported in the
consolidated income statement under the item relating to the underlying transaction.
The fair values of the derivative instruments used to secure planned transactions and for hedging the
variable cash flows from the promissory note loans (cash flow hedge accounting) and to secure the fair
value of a recognised asset or liability (fair value hedge) are shown under "Other current and non-current
financial assets or liabilities".
PUMA AS LESSEE
The leases for which PUMA acts as a lessee are identified at the individual contract level. For these leases,
PUMA recognises a right-of-use asset and a respective lease liability, with the exception of short-term
leases (defined as leases with a term of no more than 12 months) and low-value lease agreements (with a
value of less than € 5,000 at contract conclusion). In the case of a short-term lease or low-value lease, the
Group recognises the lease payments on a straight-line basis over the term of the lease agreement as other
operating expense.
In addition, right-of-use assets are not recognised for intangible assets. PUMA has made use of the option
and decided not to apply IFRS 16 with regard to leases for intangible assets.
The lease liability at initial recognition is measured at the present value of the not yet paid lease payments
at the beginning of the lease agreement. The present value is calculated using the incremental borrowing
rate, as the interest rate implicit in the lease is usually not known.
A number of lease agreements, particularly for real estate properties, contain extension and termination
options. When determining agreement terms, all facts and circumstances are taken into account that offer a
financial incentive to exercise the extension option or not to exercise the termination option. The changes in
the term of a lease due to the exercise or non-exercise of such options are only taken into account for the
agreement term if they are sufficiently certain.
The lease liability is recognised as a separate line item on the consolidated balance sheet.
The right-of-use assets comprise the respective lease liability as part of initial valuation. Lease instalments
that are paid before or at the beginning of the lease are added. Lease incentives received from the lessor
are deducted and initial direct costs are included. If dismantling obligations exist with regard to the leased
assets, they are included in the valuation of the right-of-use assets. The subsequent valuation of the right-
of-use assets is at acquisition cost less accumulated depreciation and impairment losses.
The right-of-use assets are generally depreciated over the term of the lease. If the useful life of the asset
underlying the lease is shorter, this limits the depreciation period accordingly. Depreciation starts with the
commencement of the lease.
As part of the practical expedient, IFRS 16 permits dispensing with a separation between non-lease
components and lease components. With regard to land and buildings, PUMA generally does not apply the
practical expedient, meaning that the right-of-use assets relating to land and buildings only contain leasing
components. With regard to other right-of-use assets (comprising technical equipment & machines and
motor vehicles), the practical expedient is generally applied, the result of which is that the leasing
components and non-leasing components are both recognised.
The right-of-use assets are recognised as a separate line item in the consolidated balance sheet.
The rights of use are subject to the impairment regulations pursuant to IAS 36. As a general rule, the right-
of-use assets are tested for impairment (impairment test) if there is any indication that the value of the
asset could be impaired. The right-of-use assets, in particular in connection with the Group's own retail
stores, are subjected to an impairment test if there are indicators or changes in planning assumptions that
PUMA Annual Report 2023
↗ Consolidated Financial Statements
294
suggest that the carrying amount of the assets may not be recoverable. To this end, a triggering event test
of all retail stores, each of which is a separate cash-generating unit, is carried out after preparation of the
annual budget planning or on an ad-hoc basis.
For the purposes of the triggering event test, the recoverable amount of the respective retail stores is
determined as a value in use using a simplified discounted cash flow method. The value in use is
determined on the basis of the planned cash flows for the retail stores according to the budget, which is
prepared on a bottom-up basis and approved by management. The forecast period is derived from the
expected useful lives of the respective retail store and is reviewed annually. Following the bottom-up
budget, revenue and cost developments are used as a basis for the remaining useful life, the growth rate of
which is based on expected nominal retail growth. Growth rates in the single-digit percentage range are
expected for all retail stores over the three-year detailed planning period. In calculating the value in use of
retail transactions, cash flows in non-inflationary countries were measured at a weighted cost of capital
rate of between 8.8% and 38.0% (previous year: between 8.2% and 25.3%) and the cash flows of retail
transactions in the two high-inflation countries with a weighted cost of capital between 31.2% and 145.0%
(previous year: between 20.0% and 62.7%). This was based on a risk-free interest rate on equivalent term
structures of 3.1% (previous year: 2.3%) and a market risk premium of 7.0% (previous year: 7.3%) are used as
a basis.
If, in the triggering event test, the carrying amount of the retail store assets exceeds the simplified value in
use, the recoverable amount of this cash-generating unit is calculated with the discounted cash flow
method using the above cost of capital rates. This is based on the individual planning of cash flows for the
retail store. If an impairment arises, the right of use is impaired first.
If there are indications that retail stores for which impairment has been recorded in the past have been able
to achieve a turnaround and that their rights of use are recoverable, the impairment is reversed up to a
maximum of the amount of amortised costs.
If there is an impairment loss or a reversal of an impairment loss, this is allocated to the central area in the
segment reporting under IFRS 8. However, the impaired assets are reported in the relevant operating
segments.
PUMA AS LESSOR
In financial year 2023, the accounting principles of IFRS 16 were applied for PUMA as a lessor for the first
time. If PUMA acts as a lessor, it is determined at the beginning of the lease whether it is a finance lease or
an operating lease. In order to classify the lease agreement, PUMA makes an overall assessment of
whether the lease essentially transfers all the risks and benefits associated with ownership of the
underlying asset. If this is the case, it is classified as a finance lease. If not, it is classed as an operating
lease. Various indicators are taken into account as part of this assessment, such as whether the lease ratio
comprises the majority of the economic useful life of the underlying asset. At our discretion, the leases in
which PUMA acts as an intermediate lessor are in most cases finance leases, as subletting always covers
most of the term of the main lease. If PUMA acts as an interim lessor, the shares in the main lease contract
and the sub-lease contract are accounted for separately.
In the case of finance leases, a net investment (receivable) equal to the discounted future rental payments
to be received is recognised in the balance sheet and reported under other assets (without inclusion in
working capital). The marginal debt interest rate is used to determine the discount, as the interest rate
underlying the lease is generally unknown. Interest income from finance leases is reported in the cash flow
from investing activities.
If the lease is classified as operating leases, the lease payments are immediately recognised in profit or loss
as rental income.
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CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash and bank balances. This also includes free cash and cash
equivalents that are invested as a fixed-term deposit with a term of up to three months. The total amount of
cash and cash equivalents is consistent with the cash and cash equivalents stated in the cash flow
statement.
Cash and cash equivalents are measured at amortised cost. They are subject to the impairment
requirements in accordance with IFRS 9 "Financial Instruments". PUMA monitors the credit risk of these
financial instruments taking into account the economic situation, external credit rating and/or premiums for
credit default swaps (CDS) of other financial institutions. The credit risk from cash and cash equivalents is
classified as immaterial, due to the relatively short terms and the investment-grade credit rating of the
counterparty, which signals a low probability of default for the financial instruments.
INVENTORIES
The Group procures inventories primarily from third parties and these are reported as goods within
inventories. To a small extent, footwear and golf clubs are produced in-house, which are reported as
finished goods together with the goods within the inventories.
Inventories are measured at acquisition or manufacturing cost or at the lower net realisable values derived
from the selling price at the balance sheet date. The acquisition cost of merchandise is determined using an
averaging method. Value adjustments are adequately recorded, depending on age, seasonality and
realisable market prices.
TRADE RECEIVABLES
Trade receivables are initially measured at the transaction price and subsequently at amortised cost with
deduction of value adjustments, in the form of a provision for risks.
When determining the provision for risks for trade receivables, PUMA uniformly applies the simplified
method in order to determine the expected credit losses over the remaining lifetime of the trade receivables
(called "lifetime expected credit losses") in accordance with the provisions of IFRS 9 "Financial
Instruments". For this, trade receivables are classified by geographic region into suitable groups with
shared credit risk characteristics. The expected credit losses are calculated using a matrix that presents
the age structure of the receivables and depicts a likelihood of loss for the individual maturity bands of the
receivables on the basis of historic credit loss events and future-based factors. The percentage rates for the
loss likelihoods are checked regularly to ensure they are up to date. If objective indications of a credit
impairment are found regarding the trade receivables of a certain customer, a detailed analysis of this
customer's specific credit risk is conducted and an individual provision for risks is established for the trade
receivables with respect to this customer. If a credit insurance is in place, it is taken into account when
determining the amount of the risk provision.
The Group assumes that the default risk of a financial asset has increased significantly if it is more than
30 days overdue.
OTHER FINANCIAL ASSETS
Other financial assets are classified based on the business model for control and the cash flows of the
financial assets. In the Group, financial assets are generally held under a business model that provides for
"holding" the asset until maturity, in order to collect the contractual cash flows. The second condition is that
the terms and conditions of the financial asset result in cash flows at specified times, which exclusively
represent repayments and interest payments on the outstanding nominal amount.
The "trading" business model is used for financial assets in the form of derivatives without a hedging
relationship. These are valued at fair value through profit or loss (FVPL).
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Non-current financial assets include rental deposits and other assets. Non-interest-bearing non-current
assets are discounted to present value if the resulting effect is significant.
INVESTMENTS
The investment recognised under non-current financial assets belongs to the category "measured at fair
value through other comprehensive income" (FVOCI), since these investments are held over the long term
for strategic reasons.
All purchases and disposals of investments are recorded on the settlement date. Investments are initially
recognised at fair value plus transaction costs. They are also recognised at fair value in subsequent periods.
Unrealised gains and losses are recognised in other comprehensive income, taking into account deferred
taxes. The gain or loss on disposal of investments is transferred to retained earnings.
The category "measured at fair value through profit or loss" (FVPL) is not used with regard to investments.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are measured at acquisition cost, net of accumulated depreciation. The
depreciation period depends on the expected useful life of the respective item. The straight-line method of
depreciation is applied. The useful life depends on the type of the assets involved. Buildings are subject to a
useful life of between ten and fifty years, and a useful life of between three to ten years is assumed for
movable assets.
Repair and maintenance costs are recorded as an expense as of the date on which they were incurred.
Substantial improvements and upgrades are capitalised to the extent that the criteria for capitalisation of an
asset item apply.
INVESTMENT PROPERTY
In the financial year 2023, accounting for investment property was applied for the first time in accordance
with IAS 40. These are accounted for in the same way as property, plant and equipment in accordance with
the cost model, with their acquisition or production costs less scheduled depreciation and any necessary
impairment losses. Depreciation is carried out on a straight-line basis and the useful lives are generally
equivalent to those of property, plant and equipment used in-house.
OTHER INTANGIBLE ASSETS (NOT INCLUDING GOODWILL)
Acquired intangible assets largely consist of concessions, intellectual property rights and similar rights.
These are measured at acquisition cost, net of accumulated amortisation. The useful life of intangible
assets is between three and ten years. Scheduled depreciation is done on a straight-line basis.
If the capitalisation requirements of IAS 38.57 "Intangible Assets" are met cumulatively, expenses in the
development phase for internally generated intangible assets are capitalised at the time they arise. In
subsequent periods, internally generated intangible assets and acquired intangible assets are measured at
cost less accumulated amortisation and impairment losses. In the Group, internally generated intangible
assets are generally depreciated on a straight-line basis over a useful life of 3 years.
There are also trademark rights acquired for a fee in relation to Cobra Golf. Cobra Golf, founded in 1978, has
a brand history spanning over 40 years in golf. The Cobra brand represents the core of the Golf business
area and is continued through ongoing marketing investments by the PUMA Group in the Cobra brand. Due
to the stability of the golf market and the continuation of the brand by PUMA, an indefinite useful life is
assumed for the Cobra brand.
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IMPAIRMENT OF ASSETS
Intangible assets with an indefinite useful life are not amortised according to schedule but are subjected to
an annual impairment test. Property, plant and equipment, right-of-use assets, and other intangible assets
with finite useful lives are tested for impairment if there is any indication of impairment in the value of the
asset concerned. In order to determine whether there is a requirement to record the impairment of an
asset, the recoverable amount of the respective asset (the higher amount of the fair value less costs to sell
and value in use) is compared with the carrying amount of the asset. If the recoverable amount is lower than
the carrying amount, the difference is recorded as an impairment loss. The test for impairment is
performed, if possible, at the level of the respective individual asset, otherwise at the level of the cash-
generating unit. Goodwill, on the other hand, is tested for impairment only at the level of a group of cash-
generating units. If it is determined within the scope of the impairment test that an asset needs to be
impaired, then the goodwill, if any, of the group of cash-generating units is written down initially and, in a
second step, the remaining amount is distributed proportionately over the remaining assets within the
application scope of IAS 36. If the reason for the recorded impairment no longer applies, a reversal of
impairment loss is recorded to the maximum amount of the amortised costs. There is no reversal of an
impairment loss for goodwill.
The recoverable amount is primarily calculated using the discounted cash flow method. For determining the
fair value less costs to sell and value in use, the expected cash flows are based on corporate planning data.
Expected cash flows are discounted using an interest rate in line with market conditions. As part of the fair
value determination less cost to sell, no special synergies of cash-generating units are taken into account,
and corporate planning data is adjusted to the assumptions of market participants, if required. Moreover,
there is a difference between the fair value less costs to sell and the value in use because the costs to sell
are also taken into account.
Trademarks with an indefinite useful life are subjected to an impairment test based on the relief from
royalty-method during the financial year or when the occasion arises. If there is evidence that the
underlying Cobra business is insufficiently profitable, the trademark is not only valued individually using the
relief from royalty-method, but the recoverable amount of the cash-generating units to which the trademark
is attributable is determined.
See chapter 11 for further details, in particular regarding the assumptions used for the calculation.
BORROWINGS, OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES
In general, these items are recognised at fair value, taking into account transaction costs, and subsequently
recognised at amortised cost. Non-interest or low-interest-bearing liabilities with a term of at least one
year are recognised at present value, taking into account an interest rate in line with market conditions, and
are compounded until their maturity at their repayment amount.
The "trading" business model is used for financial liabilities in the form of derivatives without a hedge
relationship. These are valued at fair value through profit or loss (FVPL).
Current borrowings also include those long-term loans that have a maximum residual term of up to one year.
PUMA offers its suppliers a supplier financing programme. This is reverse factoring, the financing
conditions of which are also linked to the achievement of sustainability targets by the suppliers in most
cases. Participation in the programme is voluntary for the suppliers and helps them to already pre-finance
the supplier invoices to PUMA from one of the partner banks against an interest discount significantly
before the customary payment date. PUMA is not affected by the participation of the suppliers in the
supplier financing programme (in particular no changes to the payment terms, no changes to the payment
methods and/or no changes to the original contractual conditions). Accordingly, the liabilities are recognised
in the balance sheet as trade payables, and cash outflows are allocated to the cash inflow from operating
activities in the cash flow statement.
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PROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS
In addition to defined benefit plans, some companies apply defined contribution plans, which do not result in
any additional pension commitment other than the current contributions. The pension provision under
defined benefit plans is generally calculated using the projected unit credit method. This method takes into
account not only known pension benefits and pension rights accrued as of the reporting date, but also
expected future salary and pension increases. The defined benefit obligation (DBO) is calculated by
discounting expected future cash outflows at the rate of return on senior, fixed-rate corporate bonds. The
currencies and maturity periods of the underlying corporate bonds are consistent with the currencies and
maturity periods of the obligations to be satisfied. In some of the plans, the obligation is accompanied by a
plan asset. In that case, the pension provision shown is reduced by the plan asset.
Details regarding the assumed life expectancy, the mortality tables used and other assumptions are shown
in chapter 15.
OTHER PROVISIONS
Provisions for the expected expenses from warranty obligations pursuant to the respective national sales
contract laws are recognised at the time of sale of the relevant products, according to the best estimate in
relation to the expenditure needed in order to fulfil the Group's obligation.
Provisions are also made to account for onerous contracts. An onerous contract is assumed to exist where
the unavoidable costs for fulfilling the contract exceed the economic benefit arising from this contract.
MANAGEMENT INCENTIVE PROGRAMMES
PUMA uses cash-settled share-based payments, share-based payments settled in cash or equities, and key
performance indicator-based long-term incentive programmes. The share-based payments settled in cash
or equities are accounted for in the same way as cash-settled share-based payments.
Detailed information on the management incentive programmes is presented in Chapter 18.
RECOGNITION OF SALES
The Group recognises sales from the sale of sporting goods. The sales are measured at fair value of the
consideration to which the Group expects to be entitled from the contract with customers, taking into
account returns, discounts and rebates. Amounts collected on behalf of third parties (such as VAT) are not
included in sales. The Group records sales at the time when PUMA fulfils its performance obligation to
customers and has transferred the right of disposal over the product to customers.
The Group sells footwear, apparel and accessories both to wholesalers and directly to customers through its
own retail activities and online sales channels. Meanwhile, the sales-related warranty services cannot be
purchased separately and do not lead to services that go beyond the assurance of the specifications at the
time of the transfer of risk. Accordingly, the Group records warranties in the balance sheet in accordance
with IAS 37 "Provisions, contingent liabilities and contingent assets".
In the case of sales of products to wholesalers, the sales revenue is recorded at the date on which the right
of disposal over the products is transferred to customers, in other words, when the products have been
shipped to the specific location of the wholesaler (delivery). After delivery, the wholesaler bears the
inventory risk and has full right of disposal over the manner and means of distribution and the selling price
of the products. In the case of sales to end customers in the Group's own retail stores, the sales are
recorded at the date when the right of disposal over the products is transferred to the end customer, in
other words, the date on which the end customer buys the products in the retail store. The payment of the
purchase price is due as soon as the customers purchase the products. In the case of sales of goods
through our own online sales channels, sales are realised when the end customers have accepted the goods
and the power of disposal over the goods has been passed to the end customer. The payment terms applied
correspond to the standard industry payment terms for each country.
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Under certain conditions and according to the contractual stipulations, customers have the option to
exchange products or return them for a credit. The amount of the expected returns is estimated on the basis
of past experience and is deducted from sales in the form of a liability based on refund obligations. The
asset value of the right arising from the product return claim is recorded under inventories and leads to a
corresponding reduction of cost of sales.
ROYALTY AND COMMISSION INCOME
The Group recognises license and commission income from the out-licensing of trademark rights to third
parties in accordance with IFRS 15 Revenue from contracts with customers. Income from royalties is
recognised in the income statement in accordance with the invoices to be submitted by the licensees. In
certain cases, values must be estimated in order to permit accounting on an accrual basis. Commission
income is invoiced if the underlying purchase transaction is classified as realised.
ADVERTISING AND PROMOTIONAL EXPENSES
Advertising expenses are recognised in the income statement at the time they are incurred. In general,
promotional expenses stretching over several years are recognised as an expense over the contractual term
on an accrual basis. Any expenditure surplus exceeding the economic benefit that results from this
allocation of expenses after the balance sheet date is recognised in the financial statements in the form of
an impairment of assets and, if necessary, a provision for anticipated losses. If promotional and advertising
contracts provide for additional payments when predefined targets are achieved (e.g. medals,
championships), which cannot be predicted exactly in terms of time and amount, they are recognised in full
in profit or loss at the relevant date.
FINANCIAL RESULT
The financial result includes interest income from financial investments and interest expenses from loans,
along with interest income and expenses in connection with derivative financial instruments. Financial
results also include interest expenses from lease liabilities as well as discounted, non-current liabilities
associated with acquisitions and those arising from the valuation of pension commitments, in addition to
interest income from finance leases.
Exchange rate effects that can be directly allocated to an underlying transaction are shown in the respective
income statement item.
INCOME TAXES
Current income taxes are determined in accordance with the tax regulations of the respective countries
where the individual Group companies conduct their operations.
PUMA management regularly assesses individual tax issues to determine whether there is scope for
interpretation in view of existing tax regulations. If appropriate, these issues are taken into account in
income tax liabilities or deferred taxes. The income tax assessment is generally carried out at the level of
the individual case, taking into account any possible interactions. Appropriate balance sheet provisions have
been made for potential risks from uncertain tax positions, taking into account IFRIC 23.
DEFERRED TAXES
Deferred taxes resulting from temporary valuation differences between the IFRS and tax balance sheets of
individual Group companies and from consolidation procedures, which are levied by the same taxation
authority and can be netted, are charged to each taxable entity and recognised either as deferred tax assets
or deferred tax liabilities.
Deferred tax assets may also include claims for tax reductions that result from the expected utilisation of
existing losses carried forward to subsequent years and which is likely to materialise. Deferred tax assets
or liabilities may also result from accounting treatments that do not affect the income statement.
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Deferred tax assets are recognised only to the extent that the respective tax advantage is likely to
materialise.
ESTIMATION UNCERTAINTY
The preparation of the consolidated financial statements requires some assumptions and estimates that
have an impact on the measurement and presentation of the recognised assets and liabilities, income and
expenses, and contingent liabilities. The assumptions and estimates are based on premises, which in turn
are based on currently available information. In individual cases, the actual values may deviate from the
assumptions and estimates made. Consequently, future periods involve a risk of adjustment to the carrying
amount of the assets and liabilities concerned. If the actual development differs from the expectation, the
premises and, if necessary, the carrying amounts of the relevant assets and liabilities are adjusted with an
effect on profit or loss.
All assumptions and estimates are continuously reassessed. They are based on historical experiences and
other factors, including expectations regarding future global and industry-related trends that appear
reasonable under the current circumstances. Assumptions and estimates mainly relate to the valuation of
goodwill and trademarks, inventories, liabilities from refund obligations, taxes and leases in which PUMA is
the lessee. The most significant forward-looking assumptions and sources of estimation and uncertainty as
of the reporting date concerning the above-mentioned items are discussed below.
Goodwill and brands
A review of the impairment of goodwill is based on the calculation of the value in use as a leading valuation
concept. In order to calculate the value in use, the Group must estimate the future cash flows from those
cash-generating units to which the goodwill is allocated. To this end, the data used were from the three-
year plan, which is based on forecasts of the overall economic development and the resulting industry-
specific consumer behaviour. Another key assumption concerns the determination of an appropriate
interest rate for discounting the cash flow to present value (discounted cash flow method). The relief from
royalty-method is used to value brands. See chapter 11 for further details, in particular regarding the
assumptions used for the calculation.
Inventories
Inventories are measured at acquisition or manufacturing cost or at the lower net realisable values derived
from the selling price at the balance sheet date. Value adjustments are adequately recorded, depending on
age, seasonality and realisable market prices. Further details on the inventory valuation are provided in
chapter 4.
Liabilities from refund obligations
The Group recognises sales from the sale of sporting goods. The sales are measured at fair value of the
consideration to which the Group expects to be entitled from the contract with customers, taking into
account returns, discounts and rebates. As customers have the opportunity to exchange goods under
certain conditions and in accordance with the contractual agreements, the amount of expected return
deliveries is estimated on the basis of experience. The accrual of sales takes place via the liability from
refund obligations.
Taxes
Tax items are determined taking into account the various prevailing local tax laws and the relevant
administrative opinions and, due to their complexity, may be subject to different interpretations by persons
subject to tax on the one hand and the tax authorities on the other hand. Differing interpretations of tax laws
may result in subsequent tax payments for past years; these are included based on the assessment of the
management, using the most probable amount or the expected value for the individual case.
The recognition of deferred taxes requires that estimates and assumptions be made concerning future tax
planning strategies as well as expected dates of occurrence and the amount of future taxable income. The
taxable income from the relevant corporate planning is derived for this assessment. It takes into account
PUMA Annual Report 2023
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the past financial position and the business development expected in the future. Deferred tax assets are
recorded in the event of companies incurring a loss only if it is highly probable that future positive results
will be achieved. See Chapter 8 for further information.
PUMA as lessee
The measurement of lease liabilities under leases in which PUMA is the lessee is based on assumptions for
the discount rates used, the lease term and the determination of fixed lease payments. To determine the
present value of future minimum lease payments, PUMA uses country- and currency-specific interest rates
on borrowings with compatible terms. In addition to the basic lease period, the Group includes extension
options in the determination of the lease term if management is sufficiently certain that such options will be
exercised after taking into account all facts and circumstances. The fixed lease payments also include firmly
agreed upon minimum amounts for agreements with a predominantly variable lease amount.
DISCRETIONARY DECISIONS
The preparation of the consolidated financial statements requires discretionary decisions relating to the
application of accounting methods and the amounts of assets, liabilities, income and expenses reported.
Information on the application of accounting policies that have the most material impact on the amounts
recorded in the financial statements can be found in the following notes:
Evaluation of the control of companies with non-controlling interests
The determination as to whether the Group controls the companies with non-controlling interests is
presented in chapter 28, Information on non-controlling interests.
PUMA as lessee
The accounting for leases in which PUMA is the lessee includes discretionary decisions, in particular in
relation to the term of the lease agreements with regard to determining whether the exercise of extension
options is sufficiently certain.
Some real estate leases contain extension options that can only be exercised by PUMA and not by the lessor.
If possible, the Group seeks to include extension options when concluding new leases in order to ensure
operational flexibility. On the date of provision, the Group assesses whether it is sufficiently certain that the
extension options will be exercised. The assessment is carried out individually for each contract and takes
into account the amount of the company's own investments and the possibility of changing macroeconomic
conditions in the future. If significant events or significant changes occur during the term of the contract
that are within PUMA's control, it will be reassessed as to whether it is sufficiently certain that the extension
option will be exercised.
Significant discretionary decisions are made in the subsequent valuation of rights of use for retail stores in
the context of assessing the existence of an impairment and determining the impairment requirement.
Among other things, assumptions are made about the duration of the lease, the future economic
development and profitability of the retail stores, and also the underlying interest rate.
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NOTES TO THE CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
3. CASH AND CASH EQUIVALENTS
As of 31 December 2023, the Group has € 552.9 million (previous year: € 463.1 million) in cash and cash
equivalents. This includes bank balances, including short-term financial investments with an original term
of up to three months. The average effective interest rate of the financial investments was 1.1% (previous
year: 1.7%) for countries without hyperinflation. In countries with hyperinflation, the average effective
interest rate of financial investments was 40.9% (previous year: 33.4%). Due to currency exchange controls,
transfer restrictions of € 45.6 million (previous year: € 93.3 million) were placed on the cash and cash
equivalents reported.
4. INVENTORIES
Inventories are allocated to the following main groups:
↗ T.11 INVENTORIES (in € million)
2023
2022
Goods/inventory and finished goods
Footwear
625.9
750.2
Apparel
420.8
519.0
Accessories/Other
216.0
266.4
Raw materials, consumables and supplies
34.9
46.8
Prepayments made
2.9
3.2
Goods in transit
458.7
592.6
Inventory adjustments related to returns
45.2
66.9
Total
1,804.4
2,245.1
The raw materials, consumables and supplies mainly relate to raw materials for the production of golf clubs
and footwear.
The table shows the carrying amounts of the inventories net of value adjustments. Of the value adjustments
in the amount of € 157.1 million (previous year: € 217.0 million) approx. 64.3% (previous year: approx. 67.5%)
were recognised as an expense under cost of sales in financial year 2023. The volume of inventories
recorded as an expense during the period mainly includes the cost of sales shown in the consolidated
income statement.
The inventory adjustments related to returns represents the historical acquisition or production costs of the
inventories for which a return is expected.
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5. TRADE RECEIVABLES
The trade receivables are broken down as follows:
↗ T.12 TRADE RECEIVABLES (in € million)
2023
2022
Trade receivables, gross
1,183.4
1,122.8
Less provision for risks
-65.0
-57.9
Trade receivables, net
1,118.4
1,064.9
The change in the provision for risks for financial assets in the "trade receivables" class measured at
amortised cost relates to receivables in connection with revenues from contracts with customers and has
developed as follows:
↗ T.13 CHANGE OF RISK PROVISIONS FOR TRADE RECEIVABLES (in € million)
2023
2022
Status of provision for risks as of 1 January
57.9
58.7
Exchange rate differences
-1.6
0.4
Additions
26.7
20.3
Utilization
-3.8
-5.6
Reversals of unused provision for risks
-14.3
-15.8
Status of provision for risks as of 31 December
65.0
57.9
The age structure of the trade receivables is as follows:
↗ T.14 AGE STRUCTURE 2023 (in € million)
overdue
2023
Total
Not due
0-30
days
31-90
days
90-180
days
Over 180
days
Gross carrying amount -
Trade receivables
1,183.4
952.3
92.4
83.4
14.1
41.4
Provision for risks
-65.0
-16.4
-4.0
-8.2
-4.5
-31.9
Net carrying amount -
Trade receivables
1,118.4
935.8
88.4
75.2
9.6
9.5
Expected loss rate
1.7%
4.3%
9.8%
32.0%
77.1%
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↗ T.15 AGE STRUCTURE 2022 (in € million)
overdue
2022
Total
Not due
0-30
days
31-90
days
90-180
days
Over 180
days
Gross carrying amount -
Trade receivables
1,122.8
986.7
58.5
26.4
11.6
39.7
Provision for risks
-57.9
-21.2
-3.7
-2.7
-2.7
-27.6
Net carrying amount -
Trade receivables
1,064.9
965.5
54.8
23.7
8.9
12.1
Expected loss rate
2.1%
6.3%
10.2%
23.6%
69.6%
With respect to the net carrying amounts of trade receivables, PUMA assumes that the debtors will satisfy
their payment obligations or that, in the event of a default, the net carrying amount will be covered by
existing credit insurance. There are no significant risk concentrations as the customer base is very broad
and there are no correlations.
6. OTHER CURRENT FINANCIAL ASSETS
Other current financial assets are broken down as follows:
↗ T.16 OTHER CURRENT FINANCIAL ASSETS (in € million)
2023
2022
Fair value of derivative financial instruments
34.5
115.9
Lease receivables
14.9
0.0
Other financial assets
45.6
21.6
Total
94.9
137.4
The amount shown is due within one year. The fair value corresponds to the carrying amount.
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7. OTHER CURRENT ASSETS
Other current assets are broken down as follows:
↗ T.17 OTHER CURRENT ASSETS (in € million)
2023
2022
Prepaid expense relating to the subsequent period
98.3
86.2
Other receivables
172.1
149.8
Total
270.4
235.9
The amount shown is due within one year. The fair value corresponds to the carrying amount.
Other receivables mainly comprise receivables relating to VAT of € 98.9 million (previous year: € 97.9 million)
and other taxes of € 25.6 million (previous year: € 30.3 million).
8. DEFERRED TAXES
Deferred taxes relate to the items shown below:
↗ T.18 DEFERRED TAXES
1 (in € million)
2023
2022
Tax loss carryforwards
76.9
57.5
Inventories
74.5
90.8
Remaining current assets
13.5
13.5
Non-current assets
56.3
37.6
Lease liabilities (current and non-current)
290.8
289.6
Provisions and other liabilities
118.1
142.6
Deferred tax assets (before netting)
630.1
631.6
Current assets
17.4
37.6
Intangible assets
42.1
44.1
Right-of-use assets
258.2
260.5
Remaining non-current assets
24.6
32.4
Provisions and other liabilities
4.1
4.0
Deferred tax liabilities (before netting)
346.4
378.5
Deferred tax assets, net
283.7
253.1
1
In order to better provide decision-relevant information, the data – including the previous year's figures – has been
adjusted.
As of 31 December 2023, tax losses carried forward amounted to a total of € 447.9 million (previous year:
€ 360.7 million). Deferred tax assets were recognised for these items in the amount at which the associated
tax advantages are likely to be realised in the form of future profits for income tax purposes. In financial
year 2023, no deferred tax items were recognised for the losses carried forward in the amount of
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↗ Consolidated Financial Statements
306
€ 102.9 million (previous year: € 93.5 million), of which € 94.5 million (previous year: € 88.2 million) are
vested. The remaining tax losses carried forward, for which no deferred tax items were recognised, in the
amount of € 8.3 million (previous year: € 5.3 million) will expire within the next six years
1.
In addition, no deferred tax items were recognised for temporary differences in the amount of € 27.0 million
(previous year: € 22.6 million) because they were not expected to be realised as of the balance sheet date.
For Group companies that achieved a negative tax result in this or the previous financial year, a total of
deferred tax assets in the amount of € 157.1 million were recognised after deduction of any deferred tax
liabilities (previous year: € 70.0 million) as sufficiently positive tax results can be expected in the future on
the basis of the relevant projections.
No deferred taxes on retained profits at subsidiaries were recognised where these gains are to be
reinvested on an ongoing basis and there is no intention to make a distribution in this respect.
Deferred tax assets and liabilities are netted if they relate to a taxable entity and can in fact be netted.
Accordingly, they are shown in the balance sheet as follows:
↗ T.19 DEFERRED TAX ASSETS AND LIABILITIES (in € million)
2023
2022
Deferred tax assets
296.1
295.0
Deferred tax liabilities
12.4
42.0
Deferred tax assets, net
283.7
253.1
The changes in deferred tax assets (net) were as follows:
↗ T.20 MOVEMENT OF DEFERRED TAXES (in € million)
2023
2022
Deferred tax assets, net as of 1 January
253.1
231.1
Recognition in the income statement
22.8
25.1
Adjustment related to remeasurements of the net defined benefit liability,
recognised in other comprehensive income
0.2
-2.5
Adjustment related to the market value of hedging contracts,
recognised in other comprehensive income
10.1
-0.7
Currency exchange effects
-2.5
0.0
Deferred tax assets, net as of 31 December
283.7
253.1
1 In order to better provide decision-relevant information, the data – including the previous year's figures – has been adjusted.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
307
9. PROPERTY, PLANT AND EQUIPMENT
The development of property, plant and equipment is shown in the following tables:
↗ T.21 MOVEMENTS PROPERTY, PLANT & EQUIPMENT 2023 (in € million)
Real Estate
Technical
equipment and
machines
Other equipment,
factory and office
equipment
Payments on
account and assets
under construction
Total
Purchase costs as of
1 January 2023
175.2
170.8
706.2
75.1
1,127.3
Additions
23.9
16.6
118.4
66.5
225.4
Disposals
-4.8
-0.4
-41.0
-2.8
-49.0
Transfers
0.1
39.7
2.2
-42.3
-0.4
Currency changes
-5.0
-4.1
-32.6
-1.8
-43.4
As of 31 December 2023
189.5
222.5
753.2
94.8
1,260.0
Accumulated
depreciation as of
1 January 2023
-54.5
-37.3
-443.2
-0.1
-535.2
Depreciation
-6.2
-15.0
-84.4
0.0
-105.7
Disposals
3.5
0.4
38.6
0.0
42.5
Transfers
0.0
-0.3
-0.0
0.0
-0.3
Currency changes
1.2
2.5
20.3
0.1
24.2
As of 31 December 2023
-56.0
-49.7
-468.7
0.0
-574.4
Net carrying amount as
of 31 December 2023
133.5
172.8
284.6
94.8
685.6
PUMA Annual Report 2023
↗ Consolidated Financial Statements
308
↗ T.22 MOVEMENTS PROPERTY, PLANT & EQUIPMENT 2022 (in € million)
Real Estate
Technical
equipment and
machines
Other equipment,
factory and office
equipment
Payments on
account and assets
under construction
Total
Purchase costs as of
1 January 2022
168.6
145.2
574.1
42.1
930.0
Additions
0.9
6.8
112.7
79.5
199.9
Disposals
-0.2
-0.5
-45.0
-2.4
-48.1
Transfers
-4.2
12.8
44.9
-44.8
8.5
Currency changes
10.1
6.5
19.6
0.8
37.0
As of 31 December 2022
175.2
170.8
706.2
75.1
1,127.3
Accumulated
depreciation as of
1 January 2022
-47.0
-19.5
-391.1
0.0
-457.6
Depreciation
-6.0
-9.0
-78.7
0.0
-93.7
Disposals
0.1
0.4
43.6
0.0
44.2
Transfers
0.1
-4.1
-0.0
-0.1
-4.2
Impairment
0.0
0.0
-0.6
0.0
-0.6
Currency changes
-1.7
-5.2
-16.4
0.0
-23.2
As of 31 December 2022
-54.5
-37.3
-443.2
-0.1
-535.2
Net carrying amount as
of 31 December 2022
120.7
133.5
263.1
75.0
592.2
Investment properties are included under real estate within property, plant and equipment with a carrying
amount of € 21.1 million (previous year: € 0.0 million) as of 31 December 2023. The fair value of investment
properties as of 31 December 2023 is € 23.3 million (previous year: € 0.0 million). This was determined by
external, independent experts who have relevant professional qualifications and current experience with the
location and type of properties to be valued. The fair value was determined on the basis of the market-
comparative approach, which reflects the most recent transaction prices for similar properties.
The rental income generated by the Group from investment properties amounted to € 0.6 million in the
financial year (previous year: € 0.0 million). Direct operating expenses for investment properties, which
generated rental income in the financial year, amounted to € 0.0 million (previous year: € 0.0 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
309
10. LEASES
PUMA AS LESSEE
The Group rents and leases offices, warehouses, facilities, technical equipment and machinery, motor
vehicles and sales rooms for its own retail business. As a rule, the lease agreements have a term of
between one and fifteen years. Some agreements include renewal options and price adjustment clauses.
The carrying amounts for right-of-use assets recognised in the balance sheet relate to the following asset
classes:
↗ T.23 RIGHT-OF-USE ASSETS 2023 (in € million)
Real Estate –
Retail stores
Real Estate –
Warehouses & offices
Others
(technical equipment
and machines and
vehicles)
Total
Depreciation
107.1
89.7
12.2
209.0
Additions
174.1
71.9
14.3
260.3
Net carrying amount as of
31 December 2023
464.2
557.7
65.7
1,087.7
↗ T.24 RIGHT-OF-USE ASSETS 2022 (in € million)
Real Estate –
Retail stores
Real Estate –
Warehouses & offices
Others
(technical equipment
and machines and
vehicles)
Total
Depreciation
110.1
82.1
10.6
202.8
Additions
187.1
188.8
29.5
405.4
Net carrying amount as of
31 December 2022
430.9
613.1
67.3
1,111.3
The following lease liabilities result:
↗ T.25 LEASE LIABILITIES (in € million)
2023
2022
Current lease liabilities
212.4
200.2
Non-current lease liabilities
1,020.0
1,030.3
Total
1,232.4
1,230.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
310
The amounts recognised in the income statement are as follows:
↗ T.26 RECOGNISED IN INCOME STATEMENT (in € million)
2023
2022
Depreciation of right-of-use assets incl. impairment losses and reversal of
impairment losses (included in operating expenses)
202.8
228.1
Interest expense (included in financial expenses)
46.8
38.6
Expenses short-term leases
(included in operating expenses)
11.3
10.1
Expenses leases of low-value assets
(included in operating expenses)
1.2
1.0
Expenses variable lease payments
(included in operating expenses)
35.4
29.7
Total
297.5
307.6
Variable lease payments are incurred in connection with the Group's own retail stores. These are based on
the sales amount and are therefore dependent on the overall economic development.
Total cash outflows from lease liabilities in 2023 amounted to € 254.8 million (previous year: € 228.7 million).
Due to reduced earnings prospects based on updated financial planning and estimates as well as retail
store closures, impairment expenses in the total amount of € 5.7 million were recorded for the right of use
of assets in connection with PUMA's own retail stores in financial year 2023 (previous year: € 25.4 million).
To determine the impairment, the recoverable amount was calculated for the individual retail stores. This
amounted to € 65.3 million for impaired retail stores (previous year: € 111.4 million). In the financial year,
impairment reversals in the amount of € 11.9 million (previous year: € 0.0 million) were recorded for retail
stores. There were no impairment losses or impairment reversals in the other categories of right-of-use
assets.
In 2023, PUMA entered into lease agreements that had not yet commenced by year-end. As a result, no
lease liabilities and corresponding right-of-use assets had been recognised as of 31 December 2023. Future
lease payments in connection with these agreements amount to € 2.0 million (previous year: € 2.6 million)
for the next year, € 28.2 million for years two to five (previous year: € 13.7 million) and € 48.5 million for the
subsequent period (previous year: € 8.7 million). The lease terms for these are up to 15 years.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
311
The maturity analysis of lease liabilities is as follows:
↗ T.27 MATURITY ANALYSIS OF LEASE LIABILITIES (in € million)
2023
2022
Due within one year
255.8
234.0
Due between one and five years
679.6
665.3
Due after five years
510.4
541.2
Total (undiscounted)
1,445.8
1,440.6
Interest expense (not yet realised)
-213.4
-210.2
Total
1,232.4
1,230.4
PUMA AS LESSOR
PUMA rents out properties owned and leased as a lessor. From the lessor's point of view, these (sub)leases
are classified as operating or finance leases. In the previous year, PUMA did not rent out any properties.
The net investments from finance leases are shown as receivables in the balance sheet and are reduced by
the repayment portion included in the lease payment. The interest portion included in the lease payment is
reported as interest income in the financial result.
The maturities of the existing receivables on lease payments against third parties classified as finance
leases are as follows:
↗ T.28 MATURITY ANALYSIS OF LEASE RECEIVABLES (in € million)
2023
Due within one year
16.8
Due between one and five years
24.8
Due after five years
4.5
Total (undiscounted)
46.1
Interest income (not yet realised)
-5.4
Provision for risks
-0.5
Total
40.2
PUMA Annual Report 2023
↗ Consolidated Financial Statements
312
The following income was recognised in the income statement in connection with leases:
↗ T.29 RECOGNISED IN INCOME STATEMENT (in € million)
2023
Operating leases
Fixed rental income
1.0
Finance leases
Variable rental income
0.4
Total rental income (included in other operating income)
1.4
Selling profit (included in other operating income)
8.0
Interest income (included in financial income)
1.2
Future lease payments from operating leases for the coming year amount to € 1.6 million (previous year:
€ 0.0 million) and to € 5.1 million for years two to five (previous year: € 0.0 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
313
11. INTANGIBLE ASSETS
Intangible Assets mainly include goodwill, intangible assets with indefinite useful lives (e.g. brands), assets
associated with the Company's own retail activities and software licenses.
The development of intangible assets is shown in the following table:
↗ T.30 MOVEMENTS INTANGIBLE ASSETS 2023 (in € million)
Goodwill
Intangible assets
with an indefinite
useful life
Other
intangible assets
Total
Purchase costs as of 1 January 2023
289.3
151.0
341.0
781.2
Additions
0.0
0.0
74.2
74.2
Disposals
0.0
0.0
-16.8
-16.8
Transfers
0.0
0.0
0.6
0.6
Currency changes
-4.0
-4.6
-1.5
-10.1
As of 31 December 2023
285.3
146.3
397.5
829.1
Accumulated depreciation as of
1 January 2023
-46.6
-17.6
-210.5
-274.7
Depreciation
0.0
0.0
-37.0
-37.0
Disposals
0.0
0.0
11.9
11.9
Transfers
0.0
0.0
-0.1
-0.1
Currency changes
0.4
0.0
1.3
1.6
As of 31 December 2023
-46.3
-17.6
-234.5
-298.2
Net carrying amount as of
31 December 2023
239.0
128.7
163.0
530.8
PUMA Annual Report 2023
↗ Consolidated Financial Statements
314
↗ T.31 MOVEMENTS INTANGIBLE ASSETS 2022 (in € million)
Goodwill
Intangible assets
with an indefinite
useful life
Other
intangible assets
Total
Purchase costs as of 1 January 2022
291.5
143.2
276.6
711.4
Additions
0.0
0.0
64.0
64.0
Disposals
0.0
0.0
-2.4
-2.4
Transfers
0.0
0.0
1.3
1.3
Currency changes
-2.2
7.8
1.4
6.9
As of 31 December 2022
289.3
151.0
341.0
781.2
Accumulated depreciation as of
1 January 2022
-46.8
-17.6
-175.1
-239.5
Depreciation
0.0
0.0
-36.3
-36.3
Disposals
0.0
0.0
2.2
2.2
Transfers
0.0
0.0
-0.2
-0.2
Currency changes
0.2
0.0
-1.1
-1.0
As of 31 December 2022
-46.6
-17.6
-210.5
-274.7
Net carrying amount as of
31 December 2022
242.7
133.4
130.4
506.5
The item Other intangible assets includes advance payments in the amount of € 21.6 million (previous year:
€ 5.6 million).
The current amortisation of intangible assets in the amount of € 37.0 million (previous year: € 36.3 million) is
included in the other operating expenses. Of this, € 11.5 million relate to sales and distribution expenses
(previous year: € 7.7 million), € 0.1 million to expenses for product management/merchandising (previous
year: € 0.1 million), € 0.0 to development expenses (previous year: € 1.9 million), and € 25.3 million to
administrative and general expenses (previous year: € 26.5 million).
INFORMATION ON PLANNING ASSUMPTIONS FOR IMPAIRMENT TESTS
Goodwill and intangible assets with indefinite useful lives are not amortised according to schedule.
Impairment tests with regard to goodwill were performed in the past financial year using the discounted
cash flow method. The data from the three-year plan for the respective cash-generating unit or group of
cash-generating units was used as a basis for this. Planning on the level of the cash-generating units was
thereby derived from the PUMA Group's three-year plan. The following key assumptions have been made for
the PUMA Group plans:
Based on the basic assumptions regarding overall economic development, planning at Group level assumes
that geopolitical tensions will not increase any further. Under these conditions, we expect our business to
continue to grow profitably.
Planned sales growth is based on the good future growth prospects in the sporting goods industry and on
market share gains by PUMA. This is to be achieved, in particular, via the continued consistent
implementation of the Forever Faster corporate strategy and the increase in PUMA's brand heat.
The improvement in EBIT margin in the planning period is the result of a slight increase in gross profit
margin due to, for example, a higher share of own retail sales as a result of above-average growth of the e-
commerce distribution channel. Furthermore, the slightly weaker percentage increase of other operating
PUMA Annual Report 2023
↗ Consolidated Financial Statements
315
income and expenses compared to sales growth is also expected to contribute to the improvement of the
EBIT margin; for example, the operating requirements for planned sales growth over the coming years have
essentially been met, meaning that economies of scale can be realised.
The planning of investments and working capital is based on historical experience and is carried out in
accordance with strategic objectives.
The future tax payments are based on current tax rates in the respective country.
For periods beyond the three-year plan, an annual growth rate is determined and used to forecast future
cash flows beyond the three-year period. The assumed growth rate is based on long-term expectations of
inflation rates and does not exceed the long-term average growth rates for the business area in which the
respective cash-generating unit, or group of cash-generating units, operates.
The recoverable amount for the respective cash-generating unit or group of cash-generating units was
determined on the basis of the value-in-use. This did not result in impairment losses for any cash-
generating units.
INTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE
In connection with the Golf business unit (CPG – Cobra PUMA Golf), the Cobra brand exists as an intangible
asset with an indefinite useful life amounting to € 128.7 million (previous year: € 133.4 million). The carrying
amount of the Cobra brand is significant in comparison to the overall carrying amount of the intangible
assets with an indefinite useful life. It was assigned to the North America business segment, where the
headquarters of Cobra PUMA Golf is located. The recoverable amount of the Cobra brand was determined
using the relief from royalty-method (level 3 – see explanation in chapter 14). A discount rate of 10.6% p.a.
(previous year: 9.4% p.a.), a royalty rate of 6.0% (previous year: 8.0%) and a sustainable 2.0% growth rate
(previous year: 2.0%) was used. Cobra or CPG's three-year plan shows average revenue growth in the high
single-digit percentage range. The Management's key assumptions about improvement in the EBIT margin
in Cobra's or CPG's three-year plan are essentially in line with the fundamental assumptions in the plans at
Group level.
A reduction of the royalty rate to approximately 5.4% or a reduction of the average planned sales revenues
by approx. 10.3% would not result in any impairment requirement for the Cobra brand, and the recoverable
amount would correspond to the carrying amount.
If there is evidence that the underlying Cobra business is insufficiently profitable, the trademark is not only
valued individually using the relief from royalty-method, but the recoverable amount of the cash-generating
units to which the trademark is attributable is determined. In 2023, there were no indications of an
impairment.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
316
GOODWILL
Goodwill is allocated to the Group's identifiable groups of cash-generating units (CGUs) according to the
countries where the activities are carried out. Summarised by regions, goodwill is allocated as follows:
↗ T.32 COMPOSITION OF GOODWILL (in € million)
2023
2022
PUMA UK
1.6
1.6
Genesis
7.0
6.9
Subtotal Europe
8.7
8.5
PUMA Canada
9.7
9.9
PUMA United NA
2.0
2.1
Subtotal North America
11.7
11.9
PUMA Argentina
15.8
16.4
PUMA Chile
0.5
0.5
PUMA Mexico
12.2
10.9
Subtotal Latin America
28.5
27.8
PUMA China
2.5
2.5
PUMA Taiwan
13.3
13.7
Subtotal Greater China
15.8
16.2
PUMA Japan
35.0
38.9
Subtotal Asia/Pacific (excluding Greater China)
35.0
38.9
stichd
139.4
139.4
Total
239.0
242.7
Assumptions used in conducting the impairment tests in 2023:
↗ T.33 ASSUMPTIONS IMPAIRMENT TEST 2023
Tax rate (range)
WACC before tax
(range)
WACC after tax
(range)
Europe
19.0%
13.3%
11.1%
North America *
26.2%
12.7%
10.3%
Latin America
27.0%-35.0%
16.5%-64.1%
12.1%-51.7%
Greater China
20.0%-25.0%
12.9%-14.0%
10.5%-11.2%
Asia/Pacific (excluding Greater China) *
38.1%
16.4%
10.5%
stichd *
25.0%
13.1%
10.2%
*
The information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-
generating unit (CGU)
The tax rates used for the impairment test correspond to the actual tax rates in the respective countries.
The weighted average cost of capital (WACC) was derived on the basis of the weighted average cost of total
PUMA Annual Report 2023
↗ Consolidated Financial Statements
317
capital, taking into account a standard market capital structure (ratio of debt to equity) and including the
most important listed competitors (peer group).
In addition, a growth rate of 2.0% (previous year: 2.0%) is generally assumed. A growth rate of less than
2.0% (previous year: less than 2.0%) was applied only in justified exceptional cases, where the long-term
expectations on inflation rate for the country in which the cash-generating unit operates were lower than
the assumed growth rate; this applies, in particular, to the UK, Japan and Taiwan.
The cash-generating unit stichd includes goodwill of € 139.4 million (previous year: € 139.4 million), which is
significant in comparison to the overall carrying amount of goodwill. The recoverable amount was
determined by a value-in-use calculation with a discount rate of 10.2% p.a. (previous year: 9.4% p.a.) and a
growth rate of 2.0% (previous year: 2.0%). Stichd's three-year plan shows sales growth in the low double-
digit percentage range. In the three-year plan for stichd, a lower improvement in the EBIT margin is
expected compared to the Group, as the EBIT margin of stichd is already higher than for the Group as a
whole.
The cash-generating unit PUMA Japan includes goodwill of € 35.0 million (previous year: € 38.9 million),
which is significant in comparison to the overall carrying amount of goodwill. The recoverable amount was
determined by a value-in-use calculation with a discount rate of 10.5% p.a. (previous year: 9.4% p.a.) and a
growth rate of 1.2% (previous year: 1.0%). PUMA Japan's three-year plan shows sales growth in the high
single-digit percentage range. PUMA Japan's three-year plan shows that the company expects a strong
improvement in the EBIT margin and a return to the historical profitability level of PUMA Japan.
The following table contains the assumptions for the performance of the impairment test in the previous
year:
↗ T.34 ASSUMPTIONS IMPAIRMENT TEST 2022
Tax rate (range)
WACC before tax
(range)
WACC after tax
(range)
Europe
19.0%
12.3%-12.4%
10.4%
North America *
26.2%
11.8%
9.1%
Latin America
27.0%-34.9%
14.8%-65.4%
11.2%-58.3%
Greater China
20.0%-25.0%
12.1%-13.5%
10.0%-10.6%
Asia/Pacific (excluding Greater China) *
38.1%
14.3%
9.4%
stichd *
25.0%
12.0%
9.4%
*
The information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-
generating unit (CGU)
PUMA Annual Report 2023
↗ Consolidated Financial Statements
318
12. OTHER NON-CURRENT ASSETS
Other non-current financial and non-financial assets consist of:
↗ T.35 OTHER NON-CURRENT ASSETS (in € million)
2023
2022
Investments
21.2
21.7
Fair value of derivative financial instruments
1.4
2.5
Lease receivables
25.3
0.0
Other financial assets
35.7
34.2
Total of other non-current financial assets
83.6
58.4
Other non-current non-financial assets
25.6
8.8
Other non-current assets, total
109.1
67.2
The investments relate to the 5.32% shareholding in Borussia Dortmund GmbH & Co. Kommanditgesell-
schaft auf Aktien (BVB) with registered office in Dortmund, Germany. According to the audited IFRS
consolidated financial statements 2022/2023 of Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf
Aktien, equity as of 30 June 2023 amounted to € 282.7 million and the result of the last financial year was
€ 9.6 million.
Other financial assets mainly include rental deposits in the amount of € 31.9 million (previous year:
€ 29.8 million). The other non-current non-financial assets mainly include accruals and deferrals in
connection with promotional and advertising agreements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
319
13. LIABILITIES
The residual terms of liabilities are as follows:
↗ T.36 LIABILITIES (in € million)
2023
2022
Residual term of
Residual term of
Total
up to 1 year
1 to 5 years
over 5 years
Total
up to 1 year
1 to 5 years
over 5 years
Borrowings
572.0
145.9
426.1
0.0
327.4
75.9
251.5
0.0
Trade payables
1,499.8
1,499.8
0.0
0.0
1,734.9
1,734.9
0.0
0.0
Other liabilities*
0.0
Liabilities from other taxes
110.0
110.0
0.0
0.0
82.6
82.6
0.0
0.0
Liabilities relating to social security
10.6
10.6
0.0
0.0
10.0
10.0
0.0
0.0
Payables to employees
123.6
123.6
0.0
0.0
137.2
137.2
0.0
0.0
Liabilities from refund obligations
236.9
236.9
0.0
0.0
373.9
373.9
0.0
0.0
Liabilities from derivative financial instruments
58.2
47.7
10.5
0.0
52.4
39.5
12.9
0.0
Remaining other liabilities
45.4
43.2
2.0
0.2
54.0
51.6
2.0
0.3
Total
2,656.5
2,217.7
438.5
0.2
2,772.5
2,505.8
266.3
0.3
*
The maturity analysis on lease liabilities is presented in chapter 10.
The liabilities from refund obligations result from contracts with customers and essentially comprise obligations from customer return rights.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
320
14. FINANCIAL INSTRUMENTS
CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND ALLOCATION TO VALUATION CATEGORIES
↗ T.37 CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUE (in € million)
Measurement
categories
under IFRS 9
Carrying
amount
Fair value
Level 1
Level 2
Level 3
Carrying
amount
Fair value
Level 1
Level 2
Level 3
2023
2023
2022
2022
Assets
Cash and cash equivalents
1)AC
552.9
463.1
Trade receivables
AC
1,118.4
1,064.9
Other current financial assets
Derivatives - hedge accounting
n/a
22.8
22.8
22.8
56.1
56.1
56.1
Derivatives - no hedge accounting
2)FVPL
11.6
11.6
11.6
59.8
59.8
59.8
Lease receivables
n/a
14.9
0.0
Remaining current financial assets
AC
45.6
21.6
Other non-current financial assets
Derivatives - hedge accounting
n/a
1.4
1.4
1.4
2.5
2.5
2.5
Investments
3)FVOCI
21.2
21.2
21.2
21.7
21.7
21.7
Lease receivables
n/a
25.3
0.0
Remaining non-current financial assets
AC
35.7
34.2
Liabilities
Current borrowings
Bank liabilities
AC
15.2
15.9
Promissory note loans
AC
130.8
124.9
124.9
60.0
59.3
59.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
321
Measurement
categories
under IFRS 9
Carrying
amount
Fair value
Level 1
Level 2
Level 3
Carrying
amount
Fair value
Level 1
Level 2
Level 3
2023
2023
2022
2022
Trade payables
AC
1,499.8
1,734.9
Current lease liabilities
n/a
212.4
200.2
Other current financial liabilities
Derivatives - hedge accounting
n/a
22.6
22.6
22.6
23.6
23.6
23.6
Derivatives - no hedge accounting
2)FVPL
25.1
25.1
25.1
15.9
15.9
15.9
Remaining current financial liabilities
AC
30.9
36.5
Non-current borrowings (promissory note loans)
AC
426.1
427.4
427.4
251.5
239.5
239.5
Non-current lease liabilities
n/a
1,020.0
1,030.3
Other non-current financial liabilities
Derivatives - hedge accounting
n/a
10.5
10.5
10.5
12.9
12.9
12.9
Remaining non-current financial liabilities
AC
0.9
1.0
Total financial assets at amortised cost
1,752.6
1,583.8
Total financial liabilities at amortised cost
2,103.6
2,099.8
Total financial assets at fair value through profit
or loss
11.6
59.8
Total financial liabilities at fair value through
profit or loss
25.1
15.9
Total financial assets at FVOCI
21.2
21.7
1) AC = at amortised cost
2) FVPL = fair value through PL
3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income
PUMA Annual Report 2023
↗ Consolidated Financial Statements
322
Financial instruments that are measured at fair value in the balance sheet were determined using the
following hierarchy:
Level 1: Use of prices quoted on active markets for identical assets or liabilities.
Level 2: Use of input factors that do not involve the quoted prices stated under level 1, but can be observed
for the asset or liability either directly (i.e. as the price) or indirectly (i.e. derived from the price).
Level 3: Use of factors for the valuation of the asset or liability that are based on non-observable market
data.
Reclassification between different levels of the fair value hierarchy are recorded at the end of the reporting
period in which the change occurred.
The fair value of the investments held for strategic reasons only refers to equity instruments of the category
"fair value through OCI" (FVOCI) and is determined on the basis of level 1. The market values of the
derivative assets and liabilities as well as the fair value of the promissory note loans were determined in
accordance with level 2.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
323
The following table shows the measurement techniques used for determining Level 2 fair values for
financial instruments.
↗ T.38 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE - LEVEL 2
Type
Measurement technique
Material, non-
observable input
factors
Connection between
material, non-
observable input
factors and fair value
measurement
Currency forward
transactions
The fair values are determined on the basis of
current market parameters, i.e., reference prices
observable on the market, taking into account
forward premiums and discounts. The discounted
result of the comparison of the forward price on the
reporting date with the forward price of the
valuation date is included in the measurement.
The fair values are also checked for the
counterparty's non-performance risk. In doing this,
PUMA calculates credit value adjustments (CVA) or
debt value adjustments (DVA) on the basis of an
up/down method, taking current market information
into account, in particular the creditworthiness of
the company's business partners. No material
deviations were found, so that no adjustments were
made to the fair value determined.
Not applicable
Not applicable
Currency options
The valuation is based on Garman Kohlhagen model,
an extended version of the Black Scholes model.
Not applicable
Not applicable
Promissory note
loans
The valuation takes into account the cash value of
expected payments, discounted using a risk-
adjusted discount rate.
Not applicable
Not applicable
Interest options
The valuation is based on the Black Scholes model.
Not applicable
Not applicable
Of the fair value of the derivatives with a hedge relationship with positive market values of € 24.2 million
(previous year: € 58.6 million), € 24.5 million (previous year: € 65.9 million) related to the valuation of the
spot component. Of the fair value of the derivatives with a hedge relationship with negative market values of
€ 33.1 million (previous year: € 36.5 million), € 40.7 million (previous year: € 46.9 million) related to the
valuation of the spot component.
Cash and cash equivalents, trade receivables and other receivables have short maturities. Accordingly, as of
the reporting date, the carrying amount approximates fair value. Receivables are stated at nominal value,
taking into account deductions for default risk.
The fair values of other financial assets correspond to their carrying amount, as the interest calculation
occurs at the prevailing market interest rates on the balance sheet date. Other (current and non-current)
financial assets include € 40.3 million (previous year: € 37.8 million) that were pledged as rental deposits at
usual market rates.
Trade payables have short residual maturities; their carrying amounts therefore approximate fair value.
The remaining financial liabilities have short residual maturities; the recognised amounts therefore
approximate fair value.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
324
NET RESULT BY VALUATION CATEGORIES
The following table shows the net result by valuation category:
↗ T.39 NET GAINS/LOSSES FROM FINANCIAL INSTRUMENTS (in € million)
2023
2022
Financial assets at amortised cost (AC)
5.8
26.0
Financial liabilities at amortised cost (AC)
-89.3
-7.1
Derivatives without hedging relationship measured at fair value through profit or loss
(FVPL)
7.7
-47.6
Financial assets measured at fair value through other comprehensive income (FVOCI)
-0.5
-3.4
The net result was determined by taking into account interest income and expense, currency exchange
effects, changes in provisions for risks as well as gains and losses from disposal. It also includes effects
from the fair value measurement of derivatives without a hedging relationship.
The net result includes interest income of € 36.6 million (previous year: € 31.8 million) and interest expenses
of € 47.7 million (previous year: € 15.2 million) according to the effective interest method.
General administrative expenses include changes in risk provisions for receivables.
DISCLOSURES RELATING TO FINANCIAL RISKS
The PUMA Group is exposed to the following risks from the use of financial instruments:
• Default risk
• Liquidity risk
• Market risk
These risks and the principles of risk management are explained below.
PRINCIPLES OF RISK MANAGEMENT
The Management Board of PUMA SE is responsible for developing and monitoring risk management in the
PUMA Group. To this end, the Management Board has set up a Risk Management Committee that is
responsible for designing, reviewing and adapting the risk management system. The Risk Management
Committee regularly reports to the Management Board on its work.
The guidelines for the risk management system define the responsibilities, tasks and processes of the risk
management system. The guidelines for the risk management system and the risk management system
itself are reviewed regularly in order to be able to pick up on any changes in market conditions and PUMA's
activities and incorporate them accordingly.
The Audit Committee, on the one hand, monitors the Management Board's compliance with the guidelines
and the Group risk management processes. On the other hand, the Audit Committee monitors the
effectiveness of the risk management system with regard to the risks to which the PUMA Group is exposed.
The Internal Audit department supports the Audit Committee in its monitoring tasks. To this end, regular
audits and ad hoc audits are also carried out by the Internal Audit department. Their results are reported
directly to the Audit Committee.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
325
DEFAULT RISK
Default risk is the risk of financial losses if a customer or party to a financial instrument fails to meet its
contractual obligations. Default risk arises in principle from trade receivables and from other contractual
financial obligations of the counterparty, such as bank deposits and derivative financial instruments.
Without taking into account any existing credit insurance policies or other guarantees received, the
maximum default risk is equal to the carrying amount of the financial assets.
At the end of financial year 2023, there was no relevant concentration of default risk by customer type or
region. Default risk is mainly influenced by individual customer characteristics. In accordance with our
credit guidelines, new customers are checked for creditworthiness before we offer them our regular
payment and delivery terms. In addition, we set specific receivables limits for each customer. In particular,
the international credit insurance programme that PUMA has concluded for all major subsidiaries
contributes to risk mitigation. The creditworthiness of our customers and the limits on receivables are
monitored on an ongoing basis, which also includes requests for individual credit limits from credit
insurance providers for all customers who have external accounts that exceed a certain value limit. The
credit insurer's response to such credit limit requests always includes information on the creditworthiness.
Customers with a credit rating that does not meet the minimum requirements set may, as a rule, only
acquire products against advance payment.
Further activities to reduce default risk include retention of title clauses, and also in individual cases the
selective sale of trade receivables (without recourse) and the obtaining of bank guarantees or parent
company guarantees for our customers.
At the end of the financial year 2023, no individual customers accounted for more than 10% of trade
receivables.
The central Treasury department has a comprehensive overview of the banks involved in currency hedging
instruments and the management of cash and cash equivalents. Business with banks is focused on core
banks with the appropriate credit rating (currently a minimum rating of BBB+ or better), while maximum
risk amounts are specified for banks that have also been engaged in addition to this. The counterparty risks
resulting from this are reviewed at least once every six months.
PUMA held derivative financial instruments with a positive market value of € 35.8 million in 2023 (previous
year: € 118.3 million). The maximum default risk for an individual bank from such assets amounted to
€ 7.5 million (previous year: € 24.8 million).
In accordance with IFRS 7, the following table contains further information on the offsetting options for
derivative financial assets and liabilities. Most agreements between financial institutions and PUMA include
a mutual right to offsetting; the right to offsetting is only enforceable in the event of the default of a business
partner. Therefore, the criteria for offsetting in the balance sheet are not met.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
326
The carrying amounts of the derivative financial instruments affected by the aforementioned offsetting
agreements are shown in the following table:
↗ T.40 OFFSETTING POSSIBILITIES OF DERIVATIVE FINANCIAL INSTRUMENTS (in € million)
2023
2022
Assets
Gross amounts of financial assets recognised in the balance sheet
35.8
118.3
Financial instruments that qualify for offsetting
0.0
0.0
= Net book value of financial assets
35.8
118.3
Offsettable on the basis of framework agreements
-34.5
-50.6
Total net value of financial assets
1.3
67.7
2023
2022
Liabilities
Gross amounts of financial liabilities recognised in the balance sheet
58.2
52.4
Financial instruments that qualify for offsetting
0.0
0.0
= Net book value of financial liabilities
58.2
52.4
Offsettable on the basis of framework agreements
-34.5
-50.6
Total net value of financial liabilities
23.7
1.8
LIQUIDITY RISK
Liquidity risk is the risk that the Group may not be able to meet its financial liabilities by delivering cash or
other financial assets in accordance with the agreement. The objective of the Group in managing liquidity is
to ensure that, as far as possible, sufficient cash and cash equivalents are always available in order to meet
the payment obligations upon maturity, under both normal and strained conditions.
PUMA aims to maintain the amount of cash, cash equivalents and fixed loan commitments at a level that
covers the effects of an assumed worst-case scenario. This scenario is based on the events and financial
impact of the COVID-19 crisis in Q2 2020, which must be covered accordingly.
PUMA has confirmed credit lines amounting to a total of € 1,552.8 million (previous year: € 1,271.0 million), of
which € 986.1 million had not been used as at 31 December 2023 (previous year: € 943.7 million).
No financial liabilities were utilised from credit lines granted only until further notice.
The effective interest rate of the financial liabilities ranged from 0.0% to 1.3% (previous year: 0.0% to 0.9%).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
327
The following table shows the future cash outflows from the financial liabilities existing as at the reporting
date, as well as the contractual cash flows in connection with derivatives with a negative market value.
These are non-discounted gross amounts including expected interest payments, but exclude presentation of
the effects of offsetting:
↗ T.41 CONTRACTUAL CASH FLOWS FROM FINANCIAL LIABILITIES 2023 (in € million)
Total
2024
2025
2026 et
seq.
Non-derivative financial liabilities
Borrowings
634.0
166.9
85.1
382.0
Trade payables
1,499.8
1,499.8
Other liabilities
31.8
30.9
0.5
0.4
Derivative financial liabilities
47.0
43.8
2.2
1.0
Cash inflow derivative financial liabilities
-2,876.6
-2,397.1
-479.5
Cash outflow derivative financial liabilities
2,923.6
2,440.8
481.8
1.0
The following values were determined for the previous year:
↗ T.42 CONTRACTUAL CASH FLOWS FROM FINANCIAL LIABILITIES 2022 (in € million)
Total
2023
2024
2025 et seq.
Non-derivative financial liabilities
Borrowings
332.7
78.3
126.6
127.8
Trade payables
1,734.9
1,734.9
Other liabilities
37.5
36.5
0.8
0.2
Derivative financial liabilities
34.5
34.2
0.3
Cash inflow derivative financial liabilities
-1,905.7
-1,303.9
-601.8
Cash outflow derivative financial liabilities
1,940.2
1,338.1
602.1
1) The previous year's figures have been adjusted
MARKET RISK
Market risk is the risk that market prices, such as exchange rates, share prices or interest rates, may
change, thereby affecting the income of the Group or the value of the financial instruments held.
The aim of market risk management is to manage and control market risk within acceptable margins while
optimising returns.
To manage market risks, PUMA acquires and sells derivatives and also enters into financial liabilities. All
transactions are carried out within the framework of the Group's risk management regulations.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
328
CURRENCY RISK
PUMA is exposed to transactional foreign currency risks such that the quoted currencies used for
acquisition, disposal and credit transactions and for receivables do not match the functional currency of the
Group companies.
In financial year 2023, PUMA designated currency hedges in Cashflow Hedge Accounting in order to hedge
the amount payable of purchases denominated in USD, and converted to euros, as well as for other currency
risks resulting from internal resale to PUMA subsidiaries.
Furthermore, currency swaps and forward exchange contracts are used to hedge foreign exchange risks
when measuring intra-group loans denominated in foreign currencies.
The estimated foreign currency risks are initially subjected to a quantitative materiality test, while
simultaneously taking hedging costs into account. Material risks are then hedged, in accordance with the
Group directive, up to a hedging ratio of up to 95% of the estimated foreign currency risks from expected
acquisition and disposal transactions over the next 12 to 15 months. Forward exchange contracts and
currency options, usually with a term of around 12 months from the reporting date, are used to hedge the
foreign currency risk. For significant risks that are subject to large hedging costs, high hedging ratios can
only be achieved over shorter terms.
The summarised quantitative information about the Group's currency risk is as follows:
↗ T.43 EXPOSURE TO FOREIGN CURRENCY RISK 2023 (in € million)
as of 31 December 2023
USD
MXN
JPY
Risk from forecast transactions
-1,716.4
269.1
190.0
Balance sheet risk
-628.3
78.8
13.4
Total gross risk
-2,344.7
347.9
203.4
Hedged with currency options
18.1
0.0
-51.5
Hedged with currency forward contracts
1,933.1
-211.1
-110.3
Net risk
-393.5
136.7
41.6
↗ T.44 EXPOSURE TO FOREIGN CURRENCY RISK 2022 (in € million)
as of 31 December 2022
USD
GBP
JPY
Risk from forecast transactions
-1,665.5
104.5
205.2
Balance sheet risk
-307.1
76.6
28.3
Total gross risk
-1,972.6
181.0
233.4
Hedged with currency forward contracts
1,833.9
-171.9
-181.6
Net risk
-138.7
9.1
51.9
Currency forward contracts and the risk from forecast transactions were calculated on a one-year basis.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
329
The nominal amounts of open exchange rate-hedging transactions refer primarily to currency forward
contracts in a total amount of € 3,745.0 million (previous year: € 3,792.6 million).
The market values of open exchange rate-hedging transactions on the balance sheet date consist of:
↗ T.45 MARKET VALUE OF EXCHANGE RATE HEDGING CONTRACTS (in € million)
2023
2022
Currency forward contracts
35.5
118.3
Currency options
0.3
0.0
Currency hedging contracts, assets
35.8
118.3
Currency forward contracts
56.0
52.4
Currency options
1.2
0.0
Currency hedging contracts, liabilities
57.2
52.4
Net
-21.4
66.0
The net risk position and the average hedging rates are broken down as follows:
↗ T.46 AVERAGE HEDGING RATES
2023
2022
Current
Non-current
Current
Non-current
Currency risk
Net risk position (€ million)
1,076.5
504.2
1,167.5
508.2
Currency forward contracts
Average EUR/USD exchange rate
1.108
1.110
1.092
1.069
Average EUR/MXN exchange rate
19.978
-
21.636
-
Average EUR/JPY exchange rate
138.560
148.736
133.205
137.338
Currency options
Average EUR/USD exchange rate (Put/Call)
1.050/1.144
1.039/1.131
-
-
Average EUR/MXN exchange rate (Put/Call)
-
-
-
-
Average EUR/JPY exchange rate (Put/Call)
140.198/157.850
143.733/161.366
-
-
Currency sensitivity analysis
In order to disclose market risks, IFRS 7 requires sensitivity analysis that show the effects of hypothetical
changes in relevant risk variables on earnings and equity. The periodic effects are determined by relating
the hypothetical changes caused by the risk variables to the balance of the financial instruments held as of
the balance sheet date. The underlying assumption is that the balance as of the balance sheet date is
representative for the entire year.
Currency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a
currency which differs from the functional currency and are monetary in nature. Differences resulting from
PUMA Annual Report 2023
↗ Consolidated Financial Statements
330
the conversion of the individual financial statements to the group currency are not taken into account. All
non-functional currencies in which PUMA employs financial instruments are generally considered to be
relevant risk variables.
The currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies.
This also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also
reassessed as part of the sensitivity analysis.
The following table shows the increase or decrease of profit or loss or cash flow hedge reserve in equity in
the event of a 10% appreciation or depreciation against the euro spot price. It is assumed that all other
influencing factors, including interest rates and commodity prices, remain constant. The effects of the
forecasted operating cash flows are also ignored.
↗ T.47 SENSITIVITY ANALYSIS FOR FOREIGN EXCHANGE RATE CHANGES 2023 (in € million)
as of 31 December 2023
USD
MXN
JPY
Nominal amounts of outstanding currency forward contracts
2,413.7
-211.1
-123.7
EUR +10%
EUR +10%
EUR +10%
Equity
-151.3
17.9
-1.0
Profit or loss
2.0
-0.6
-0.1
EUR -10%
EUR -10%
EUR -10%
Equity
218.9
-11.0
-23.7
Profit or loss
-2.4
0.8
0.1
↗ T.48 SENSITIVITY ANALYSIS FOR FOREIGN EXCHANGE RATE CHANGES 2022 (in € million)
as of 31 December 2022
USD
GBP
JPY
Nominal amounts of outstanding currency forward contracts
2,428.2
-205.7
-233.8
EUR +10%
EUR +10%
EUR +10%
Equity
-186.6
7.7
13.9
Profit or loss
5.7
-0.1
0.4
EUR -10%
EUR -10%
EUR -10%
Equity
221.0
-18.8
-28.7
Profit or loss
-6.9
0.1
-0.5
Currency risks and other risk and opportunity categories are discussed in greater detail in the Combined
Management Report in the Risk and Opportunity Report.
INTEREST-RATE RISKS
The interest rate risk in the PUMA Group is primarily attributable to variable-interest borrowings. Interest
rate management is carried out centrally by the Treasury division on the basis of specified limits. Within this
framework, the division manages and monitors interest rate risk through the use of interest rate
derivatives. Transactions are only concluded with counterparties that are creditworthy. Derivatives financial
instruments must not be used for speculative purposes, but only to hedge risks related to underlying
transactions.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
331
As of 31 December 2023, € 207.5 million (previous year: € 67.5 million) of the borrowings were subject to
variable interest.
Interest rate collars were also concluded at the same amount and with the same maturity to hedge the risk
of interest rate changes for the variable interest-rate promissory note tranches in the amount of
€ 150.0 million in May 2023.
There is an economic relationship between the underlying and hedging transactions, since the terms of the
interest-rate collars correspond to those of the floating-rate loans. This applies to the nominal amount,
maturity, payment and interest adjustment dates. The underlying risk of interest rate collars is identical to
that of the hedged risk components. A hedge ratio of 1:1 has therefore been established for the hedging
relationship.
The net risk position and the average hedged interest rate are as follows:
↗ T.49 AVERAGE HEDGED INTEREST RATE
2023
Current
Non-current
Net risk position (€ million)
54.5
3.0
Interest rate risk
Average hedged interest rate in % based on current fixing (Cap/Floor)
4.7%/1.5%
As there were no significant variable interest-bearing liabilities in the previous year and no interest hedging
transactions were therefore used, the information for the previous year is not applicable.
Interest sensitivity analysis
The result in the Group depends on the development of the market interest rate level. A change in the
interest rate level would have an impact on the Group's income and equity. The analysis carried out includes
all interest-bearing financial instruments that are subject to interest rate risk.
A change in the interest rate level of 100 basis points would have the following effects on profit or loss and
the cash flow hedge reserve in equity
↗ T.50 SENSITIVITY ANALYSIS FOR INTEREST RATE RISK (in € million)
2023
+1.0%
-1.0%
Equity
0.8
0.0
Profit or loss
0.4
-1.9
As there were no significant variable interest-bearing liabilities in the previous year, no interest-rate
sensitivity analysis was prepared for the previous year.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
332
INFORMATION ON HEDGING INSTRUMENTS THAT ARE IN A HEDGING RELATIONSHIP
On the balance sheet date, the amounts relating to items designated as hedged underlying transactions with regard to exchange rate risks were as follows:
↗ T.51 DESIGNATED HEDGE ITEMS (in € million)
Change in value for the calculation of
hedge ineffectiveness
Reserve for cash flow hedges
Balance remaining in the cash flow hedging
reserve from hedging relationships to which
hedge accounting is no longer applied
as of 31 December 2023
Currency risk –
sales transactions
-8.2
19.6
0.0
Currency risk –
sourcing transactions
-5.4
-23.5
0.0
Interest rate risk
0.0
0.0
0.0
as of 31 December 2022
Currency risk –
sales transactions
-31.1
29.8
0.0
Currency risk –
sourcing transactions
188.1
-15.7
0.0
PUMA Annual Report 2023
↗ Consolidated Financial Statements
333
The amounts relating to items designated as hedging instruments have the following effects on the statement of financial position and income statement:
↗ T.52 DESIGNATED HEDGE INSTRUMENTS (in € million)
Nominal
value
Carrying amount
in the financial year 2023
Assets
Liabilities
Item in the balance
sheet, in which the
hedging instrument
is included
Changes in the
value of the
hedging
instrument,
recognized in
other
comprehensive
income
Ineffectiveness
of the hedging
instrument,
recognized in the
income
statement
Items in the
income
statement,
containing the
ineffectiveness
of the hedging
Amount
transferred
from the
hedging reserve
to the inventory
acquisition cost
Amount
reclassified
from the
hedging reserve
to the income
statement
Items in the
income
statement
affected by the
reclassification
as of 31 December 2023
Currency risk –
sales transactions
1,082.2
22.3
-6.2
other current/
non-current
financial assets/
liabilities
8.2
-
Financial
expenses
-
29.8
Sales
Currency risk –
sourcing transactions
1,996.4
2.3
-34.5
5.4
-
-12.9
-5.1
Cost of sales
Interest rate risk
150.0
0.0
0.0
0.0
-
-
0.0
Financial
expenses
in the financial year 2022
as of 31 December 2022
Currency risk –
sales transactions
1,097.7
44.0
-3.5
other current/
non-current
financial assets/
liabilities
31.1
-
Financial
expenses
-
-16.7
Sales
Currency risk –
sourcing transactions
2,082.6
21.9
-43.4
-188.1
-
91.9
144.0
Cost of sales
PUMA Annual Report 2023
↗ Consolidated Financial Statements
334
The following table shows the reconciliation of the change in equity in relation to cash flow hedges:
↗ T.53 CHANGES IN THE RESERVE FOR CASH FLOW HEDGE (in € million)
2023
2022
Reserve for cash flow hedge as of 1 January
14.2
78.1
Change in fair value
Thereof currency risk
-13.6
157.0
Thereof interest rate risk
0.0
0.0
Amount included in the acquisition cost of non-financial assets
12.9
-91.9
Amount reclassified to the income statement
Thereof currency risk
-27.5
-128.2
Thereof interest rate risk
0.0
0.0
Tax effect
10.1
-0.7
Reserve for cash flow hedge as of 31 December
-3.9
14.2
A small portion of the originally planned sourcing and sales volume in foreign currencies did not transpire,
leading to an excess of hedging transactions. Hedge accounting was terminated for those sourcing and
sales transactions that were no longer expected to transpire, and the fair value was transferred as a profit
or loss from the cash flow hedge reserve to the income statement. As soon as any highly likely sourcing or
sales transaction is no longer expected to transpire, an offsetting transaction is concluded. Across all
currency pairs, an amount of € 5.5 million (previous year: € -14.8 million) was recognised in the income
statement.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
335
15. PENSION PROVISIONS
Pension provisions result from employees' claims and, if applicable, their survivors, for benefits which are
based on the statutory or contractual regulations applicable in the respective country in the event of
invalidity, death or when a certain retirement age has been reached. Pension commitments in the PUMA
Group include both benefit- and contribution-based pension commitments and include both obligations
from current pensions and rights to pensions payable in the future. The pension entitlements are financed
by both provisions and funds.
The risks associated with the pension commitments mainly concern the usual risks of benefit-based
pension plans in relation to possible changes in the discount rate and inflation trends, and recipient
longevity. In order to limit the risks of changed capital market conditions and demographic developments,
plans with the maximum obligations were agreed or insured for new hires a few years ago in Germany and
Great Britain. The specific risk of obligations based on salary is low within the PUMA Group. The
introduction of an annual cap for pensionable salary in the Great Britain plan in 2016 covers this risk for the
highest obligations. The Great Britain plan is therefore classified as a non-salary obligation.
↗ T.54 PRESENT VALUE OF PENSION OBLIGATION 2023 (in € million)
Germany
Great Britain
Other
companies
PUMA Group
Present value of pension obligation 31 December 2023
Salary-based obligations
Annuity
0.0
0.0
8.8
8.8
One-off payment
0.0
0.0
9.1
9.1
Non-salary based obligations
Annuity
49.3
31.9
0.0
81.2
One-off payment
8.2
0.0
0.0
8.2
Total
57.5
31.9
17.9
107.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
336
The following values were determined in the previous year:
↗ T.55 PRESENT VALUE OF PENSION OBLIGATION 2022 (in € million)
Germany
Great Britain
Other
companies
PUMA Group
Present value of pension obligation 31 December 2022
Salary-based obligations
Annuity
0.0
0.0
8.6
8.6
One-off payment
0.0
0.0
9.3
9.3
Non-salary based obligations
Annuity
48.9
29.6
0.0
78.5
One-off payment
7.9
0.0
0.0
7.9
Total
56.8
29.6
17.9
104.3
The main pension arrangements are described below:
The general pension scheme of PUMA SE essentially provides for pension payments to a maximum amount
of € 127.82 per month and per eligible employee. It was closed for new members beginning in 1996. In
addition, PUMA SE provides individual commitments (fixed sums in different amounts) as well as
contribution-based individual benefits (in part from salary conversion). The contribution-based individual
benefits are insured plans. There are no statutory minimum funding requirements. The scope of obligation
for domestic pension claims amounts to € 57.5 million at the end of 2023 (previous year: € 56.8 million) and
thus comprises 53.6% of the total obligation. The fair value of the plan assets relative to domestic
obligations amounts to € 50.4 million. The corresponding pension provision amounts to € 7.1 million.
The defined benefit plan in Great Britain has not been available to new hires since 2006. This defined benefit
plan includes salary and length of service-based commitments to provide old age, invalidity and surviving
dependents' retirement benefits. In 2016, a growth cap of 1% p.a. was introduced on the pensionable salary.
Partial capitalisation of the old-age pension is permitted. There are statutory minimum funding
requirements. The obligations regarding pension claims under the defined benefit plan in the UK amount to
€ 31.9 million at the end of 2023 (previous year: € 29.6 million) and thus account for 29.7% of the total
obligation. The obligation is covered by assets amounting to € 29.7 million. The provision amounts to
€ 2.2 million.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
337
The present value of the pension obligation has developed as follows:
↗ T.56 DEVELOPMENT OF PRESENT VALUE OF PENSION OBLIGATION (in € million)
2023
2022
Present value of pension obligation 1 January
104.3
122.3
Cost of the pension obligation earned in the reporting year
2.0
2.5
Interest expense on pension obligation
4.4
1.9
Employee contributions
0.6
8.3
Benefits paid
-4.5
-3.4
Effects from transfers
0.0
0.0
Actuarial gains (-) and losses
0.1
-25.1
Currency exchange effects
0.5
-2.2
Present value of pension obligation 31 December
107.3
104.3
The changes in the plan assets are as follows:
↗ T.57 DEVELOPMENT OF PLAN ASSETS (in € million)
2023
2022
Plan assets 1 January
82.4
90.7
Interest income on plan assets
3.5
1.4
Actuarial gains and losses (-)
-0.9
-15.0
Employer contributions
1.2
1.0
Employee contributions
0.6
8.3
Benefits paid
-2.2
-2.3
Currency exchange effects
0.6
-1.7
Plan assets 31 December
85.2
82.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
338
The pension provision for the Group is derived as follows:
↗ T.58 PENSION PROVISION (in € million)
2023
2022
Present value of pension obligation from benefit plans
107.3
104.3
Fair value of plan assets
-85.2
-82.4
Financing status
22.1
21.9
Pension provision 31 December
22.1
21.9
Thereof assets
0.4
0.5
Thereof liabilities
22.5
22.4
In 2023, benefits paid amounted to € 4.5 million (previous year: € 3.4 million). Contributions in 2024 are
expected to amount to € 3.0 million. Of this, € 0.9 million is expected to be paid directly by the employer.
Employer contributions to external plan assets amounted to € 1.2 million in 2023 (previous year:
€ 1.0 million). Employer contributions in 2024 are expected to amount to € 0.8 million.
The changes in pension provisions are as follows:
↗ T.59 DEVELOPMENT OF THE PENSION PROVISION (in € million)
2023
2022
Pension provision 1 January
21.9
31.6
Pension expense
2.8
3.0
Actuarial gains (-) and losses recorded in other comprehensive income
1.0
-10.1
Employer contributions
-1.2
-1.0
Direct pension payments made by the employer
-2.3
-1.1
Transfer values
0.0
0.0
Currency exchange differences
-0.2
-0.5
Pension provision 31 December
22.1
21.9
Thereof assets
0.4
0.5
Thereof liabilities
22.5
22.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
339
The expenses in financial year 2023 are structured as follows:
↗ T.60 EXPENSES FOR DEFINED BENEFIT PLANS (in € million)
2023
2022
Cost of the pension obligation earned in the reporting year
2.0
2.5
Interest expense on pension obligation
4.4
1.9
Interest income on plan assets
-3.5
-1.4
Administration costs
0.0
0.0
Expenses for defined benefit plans
2.8
3.0
Thereof personnel costs
1.9
2.5
Thereof financial costs
0.9
0.5
In addition to the defined benefit pension plans, PUMA also makes contributions to defined contribution
plans. Payments for financial year 2023 amounted to € 19.8 million (previous year: € 18.5 million).
Actuarial gains and losses recorded in Other Comprehensive Income:
↗ T.61 GAINS AND LOSSES RECORDED IN OTHER COMPREHENSIVE INCOME (in € million)
2023
2022
Revaluation of pension commitments
0.1
-25.1
Actuarial gains (-) and losses resulting from changes in demographic assumptions
-0.7
-0.1
Actuarial gains (-) and losses resulting from changes in financial assumptions
0.0
-30.3
Actuarial gains (-) and losses due to adjustments based on experience
0.8
5.3
Revaluation of plan assets
0.9
15.0
Amounts not recorded due to the maximum limit applicable to assets
0.0
0.0
Adjustment of administration costs
0.0
0.0
Total revaluation amounts recorded directly in other comprehensive income
1.0
-10.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
340
Plan assets investment classes:
↗ T.62 PLAN ASSETS INVESTMENT CLASSES (in € million)
2023
2022
Cash and cash equivalents
0.3
0.1
Equity instruments
6.0
5.5
Bonds
7.4
3.5
Investment funds
3.2
3.0
Derivatives
10.0
11.6
Real estate
2.9
2.9
Insurance
50.6
49.4
Other
4.9
6.4
Total plan assets
85.2
82.4
Of which, investment classes with a quoted market price:
↗ T.63 PLAN ASSETS WITH A QUOTED MARKET PRICE (in € million)
2023
2022
Cash and cash equivalents
0.3
0.1
Equity instruments
6.0
5.5
Bonds
7.4
3.5
Investment funds
3.2
3.0
Derivatives
10.0
11.6
Real estate
2.1
2.1
Insurance
0.0
0.0
Other
4.7
6.3
Plan assets with a quoted market price
33.7
32.1
Plan assets still do not include the Group's own financial instruments or real estate used by Group
companies.
The plan assets are used exclusively to meet defined pension commitments. Legal requirements exist in
some countries for the type and amount of financial resources that can be chosen; in other countries (for
example Germany) the financing of pension commitments can be chosen freely. In Great Britain, a board of
trustees made up of company representatives and employees is in charge of asset management. Its
investment strategy is aimed at long-term profits and tolerable volatility. It was last revised in 2022 to
reduce the risk profile. In 2023, the trustees continued to monitor the investment strategy.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
341
The following assumptions were used to determine pension obligations and pension expenses:
↗ T.64 ASSUMPTIONS USED TO DETERMINE THE PENSION OBLIGATIONS
2023
2022
Discount rate
4.55%
4.35%
Future pension increases
1.93%
2.00%
Future salary increases
2.05%
2.06%
The indicated values are weighted average values. A standard interest rate of 4.45% was applied for the
eurozone (previous year: 4.00%).
The 2018 G Heubeck guideline tables were used as mortality tables for Germany. For Great Britain, the
mortality was assumed based on basic table series S2 taking into account life expectancy projections in
accordance with CMI2021 with a long-term trend of 1%.
The following overview shows how the present value of pension obligations from benefit plans would have
been affected by changes to significant actuarial assumptions.
↗ T.65 SENSITIVITY ANALYSIS FOR PENSION OBLIGATION (in € million)
2023
2022
Effect on present value of pension obligations if
the discount rate were 50 basis points higher
-3.7
-3.7
the discount rate were 50 basis points lower
4.2
4.1
Salary and pension trends have only a negligible effect on the present value of pension obligations due to
the structure of the benefit plans.
The weighted average duration of pension obligations is around 12 years (previous year: around 11 years).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
342
16. OTHER PROVISIONS
↗ T.66 OTHER PROVISIONS (in € million)
2022
2023
2022
Currency
adjustments,
retransfers
Additions
Utilization
Reversal
thereof non-
current
thereof non-
current
Provisions for:
Warranties
2.7
-0.1
0.5
-0.6
-0.3
2.1
0.0
0.0
Purchasing risks
7.1
-0.1
5.9
-4.6
-0.9
7.4
0.0
0.0
Litigation risks
26.6
-0.7
6.1
-15.2
-2.8
13.9
7.5
8.4
Restoration obligations
17.0
-0.8
1.9
-0.8
-0.5
16.9
13.9
14.1
Personnel provisions
7.0
0.4
2.6
-4.1
0.0
5.9
5.9
7.0
Other
19.3
-0.2
5.5
-6.1
-9.8
8.7
0.0
0.0
Total
79.8
-1.4
22.3
-31.5
-14.3
55.0
27.3
29.5
The 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
will 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
shoes.
Personnel provisions mainly relate to non-current variable compensation components. The risks arising from legal disputes relate to any form of legal dispute, including
those relating to trademark and patent rights. The other provisions relate to other risks, in particular those associated with sourcing.
Current 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
significant compounding effects. The recognition and valuation of provisions is based on past experience of similar transactions. All events until the preparation of the
consolidated financial statements are taken into account here.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
343
17. EQUITY
SUBSCRIBED CAPITAL
The subscribed capital corresponds to the subscribed capital of PUMA SE.
As of the balance sheet date, the subscribed capital in accordance with the Articles of Association
corresponds to € 150,824,640.00 and is divided into 150,824,640 no-par value voting shares. This corresponds
to a proportional amount of € 1.00 per share.
Changes in the outstanding shares:
↗ T.67 CHANGE IN OUTSTANDING SHARES
2023
2022
Outstanding shares as of January 1, share
149,758,644
149,605,600
Issue of Treasury Stock, share
85,900
153,044
Outstanding shares as of December 31, share
149,844,544
149,758,644
The issue of treasury stock relates to compensation in connection with promotional and advertising
agreements.
CAPITAL RESERVE
The capital reserve includes the premium from issuing shares, as well as amounts from the grant,
conversion and expiration of share options.
REVENUE RESERVES INCL. RETAINED EARNINGS
The revenue reserves incl. retained earnings include the net earnings of the financial year as well as the
earnings achieved in the past by the companies included in the consolidated financial statements to the
extent that it was not distributed. In addition, the valuation effects from the pension provision recognised in
other comprehensive income are recognised in retained earnings.
DIFFERENCE FROM CURRENCY CONVERSION
The equity item for currency conversion serves to record the foreign exchange differences from the
conversion of the financial statements of subsidiaries with non-euro accounting.
CASH FLOW HEDGES
The "cash flow hedges" item includes the market valuation of derivative financial instruments. The item
amounting to € -3.9 million (previous year: € 14.2 million) is offset by deferred taxes of € 5.3 million (previous
year: € -4.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
344
TREASURY STOCK
The resolution adopted by the Annual General Meeting on 7 May 2020 authorised the Company to purchase
treasury shares up to a value of 10% of the share capital until 6 May 2025. By resolution of the Annual
General Meeting of 5 May 2021, the Supervisory Board was authorised to issue the acquired shares to the
members of the Management Board of the Company, excluding the shareholders' subscription rights. By
resolution of the Annual General Meeting of 11 May 2022, the Management Board was, moreover, authorised
to issue the acquired shares, excluding the shareholders' subscription rights, as part of the Company's or
its affiliated companies' share-based payments or employee share programmes to individuals currently or
formerly in an employment relationship with the Company or one of its affiliated companies or to members
of the management of one of the Company's affiliated companies. If purchased through the stock exchange,
the purchase price per share must not exceed 10% or fall below 20% of the average closing price for the
Company's shares with the same attributes in the XETRA trading system (or a comparable successor
system) during the last three trading days prior to the date of purchase.
The Company did not make use of the authorisation to purchase treasury stock during the reporting period.
As of the balance sheet date, the Company holds a total of 980,096 PUMA shares in its own portfolio, which
corresponds to 0.65% of the subscribed capital.
AUTHORISED CAPITAL
As of 31 December 2023, the Company's Articles of Association provide for authorised capital totalling
€ 30,000,000.00:
Pursuant to Section 4.2. of the Articles of Association, the Management Board is authorised, with the
consent of the Supervisory Board, to increase the Company's share capital by 4 May 2026 by up to
€ 30,000,000.00 (Authorised Capital 2021) by issuing new no-par value bearer shares against cash and/or
non-cash contributions on one or more occasions. In the case of capital increases against contributions in
cash, the new shares may be acquired by one or several banks, designated by the Management Board,
subject to the obligation to offer them to the shareholders for subscription (indirect subscription right). The
shareholders shall generally be entitled to subscription rights. However, the Management Board is
authorised, with the consent of the Supervisory Board, to exclude shareholders' subscription rights in whole
or in part in the cases specified in Section 4.2. of the Articles of Association.
The Management Board of PUMA SE did not make use of the existing authorised capital in the current
reporting period.
CONDITIONAL CAPITAL
By resolution of the Annual General Meeting of 11 May 2022, the Management Board was authorised until
10 May 2027, with the consent of the Supervisory Board, through one or more issues, altogether or in parts
and in various tranches at the same time, to issue bearer or registered convertible and/or option bonds,
profit-sharing rights or participation bonds or a combination of these instruments with or without a term
limitation in a total nominal amount of up to € 1,500,000,000.00.
The share capital was conditionally increased by up to € 15,082,464.00 by issuing up to 15,082,464 new no-par
value bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented
to the extent that conversion/option rights are exercised, or the option/conversion obligations are met or
tenders are carried out and to the extent that other forms of performance are not applied.
No use has been made of this authorisation to date.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
345
DIVIDENDS
The amounts eligible for distribution relate to the retained earnings of PUMA SE, which are determined in
accordance with German Commercial Law.
The Management Board and the Supervisory Board will propose to the Annual General Meeting that a
dividend of € 0.82 (previous year: € 0.82) per circulating share, or a total of € 122.9 million (with respect to
the circulating shares as of 31 December 2023), be distributed to the shareholders from the retained
earnings of PUMA SE for financial year 2023.
Proposed appropriation of the retained earnings of PUMA SE:
↗ T.68 PROPOSED APPROPRIATION OF THE RETAINED EARNINGS OF PUMA SE
2023
2022
Retained Earnings of PUMA SE as of December 31, € million
486.4
499.4
Retained earnings available for distribution, € million
486.4
499.4
Dividend per share, €
0.82
0.82
Number of outstanding shares*, share
149,844,544
149,758,644
Total dividend*, € million
122.9
122.8
Carried forward to the new accounting period*, € million
363.6
376.6
*
Previous year's values adjusted to the outcome of the Annual General Meeting
NON-CONTROLLING INTERESTS
This item comprises non-controlling interests. The composition is shown in chapter 28.
CAPITAL MANAGEMENT
The Group's objective is to retain a strong equity base in order to maintain both investor and market
confidence, and to strengthen future business performance.
Capital management relates to the consolidated equity of PUMA. This is presented in the consolidated
statement of financial position and in the consolidated statement of changes in equity.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
346
18. MANAGEMENT INCENTIVE PROGRAMMES
Virtual shares with cash settlement and other global long-term incentive programmes are used at PUMA to
tie the management to the Company with a long-term incentive effect.
The current programmes are described below:
EXPLANATION OF "VIRTUAL SHARES", TERMED "MONETARY UNITS" (FULL TERM: MONETARY UNITS
PLAN – MUP)
Monetary units were granted on an annual basis to members of the Management Board beginning in 2013 as
part of a management incentive programme. Monetary units are based on the PUMA share performance.
Each of these monetary units entitles the holder to a cash payment at the end of the term. The entitled cash
payment compares the performance using the average virtual appreciation rights of the last thirty trading
days before the start of the year of issue with the virtual appreciation rights of the last thirty trading days
before the exercise date. The maximum increase in value (cap) is limited to 300% of the amount allocated.
Monetary units are subject to a vesting period of three years. After that, there is an exercise period
beginning 30 days after each quarterly publication date for a period of two years which can be freely used by
participants for the purposes of execution. Virtual shares are reduced on a "pro rata" basis in the event of
withdrawal during the vesting period. This programme will expire and be replaced by the Performance
Share Plan. As a result, no more shares were issued from this programme in financial year 2023.
EXPLANATION OF "VIRTUAL SHARES" (FULL TERM: PERFORMANCE SHARE PLAN – PSP)
Virtual shares were granted on an annual basis to members of the Management Board beginning in 2021 as
part of a management incentive programme. The virtual shares are based on the PUMA share performance.
Each of these virtual shares entitles the holder to a cash payment at the end of the term. However, the
Supervisory Board reserves the right to make the payment in PUMA shares instead of cash. This cash
payout is based on the PUMA closing prices for the last thirty trading days before the exercise date. The final
number of virtual shares is between 50% and 150%, depending on the relative "Total Shareholder Returns"
(TSR) compared to the MDAX index. The PUMA and MDAX index TSRs are calculated using the arithmetic
means of each of the TSR values on the 30 trading days before the start and end of the performance period.
The averages calculated in this way for PUMA and the MDAX index are then compared with each other. The
difference in percentage points between the PUMA TSR and the MDAX index TSR is then calculated (= TSR
outperformance in percentage points). The maximum increase in value (cap) is limited to 300% of the
amount allocated. Virtual shares are subject to a vesting period of four years. They are generally paid out
within the first quarter of the fifth year after their issue. Virtual shares are reduced on a "pro rata" basis in
the event of withdrawal during the vesting period. For the programmes issued in the financial years 2021
and 2022, the DAX acts as the basis for calculating virtual shares, while the MDAX index is used starting
financial year 2023.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
347
In 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
(previous year: income of € 0.9 million).
↗ T.69 VIRTUAL SHARES, MEMBERS OF THE MANAGEMENT BOARD
Plan
MUP
MUP
PSP
MUP
PSP
PSP
Issue date
1/1/2020
1/1/2021
1/1/2021
1/1/2022
1/1/2022
1/1/2023
Term
5
5
4.25
5
4.25
4.25
Years
Vesting period
3
3
4
3
4
4
Years
Base price PUMA share at issue
67.69
86.23
86.23
106.95
106.95
51.86
EUR/share
Reference value PUMA share at the end of the financial year
0
55.46
49.25
55.46
46.3
50.62
EUR/share
Weighted share price at the time of exercise
62.03
0
0
0
0
0
EUR/share
Participants in the year of issue
3
3
2
1
3
4
Persons
Participants at the end of the financial year
3
3
2
1
3
4
Persons
Number of monetary units/virtual shares as of 1 January 2023
62,743
34,548
7,070
10,323
16,458
81,279
Shares
Number of monetary units/virtual shares exercised in the financial year
-62,743
0
0
0
0
0
Shares
Number of monetary units/virtual shares expired in the financial year
0
0
0
0
0
0
Shares
Final number of monetary units/virtual shares as of 31 December 2023
0
34,548
7,070
10,323
16,458
81,279
Shares
This commitment consisting of share-based remuneration transactions with cash compensation is recorded as personnel provisions and remeasured at fair value on
every 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
over 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
of the financial year (previous year: € 5.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
348
EXPLANATION OF THE "GAME CHANGER 2.0" PROGRAMME
In 2018, the Long-Term Incentive Programme (LTIP) "Game Changer 2.0" was launched. Participants in this
programme consist mainly of top executives reporting to the Management Board and individual key
positions in the PUMA Group. The objective of this programme is to retain these employees in the Company
on a long-term basis and to allow them to share in the medium-term success of the Company.
The LTIP "Game Changer 2.0" consists of two plan parts, a Performance Cash Plan and a Performance
Share Plan, each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's
financial performance, while the Performance Share Plan gives a reward for the performance of the
PUMA SE share in the capital market.
The performance period of the Performance Cash Plan is three years and is based on the average medium-
term targets of the PUMA Group in terms of EBIT, sales and cash flow or working capital as a percentage of
sales. Payment is made in cash and is limited to a maximum of 200% of the granted proportionate target
amount (cap).
The Performance Share Plan uses virtual shares to manage the incentive. The term is up to five years. This
is divided into a three-year performance period and a two-year exercise period in which the virtual shares
are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24 months after the end
of the performance period). The average share price of the last 30 trading days before the exercise date
determines the value of a virtual share. The payout is limited to a maximum of 300% of the granted prorated
target amount (cap) and is only made if an exercise hurdle of +10% share-price appreciation is exceeded
once during the performance period.
EXPLANATION OF THE "GAME CHANGER 2.0 – 2023" PROGRAMME
In 2020, the global "Game Changer 2.0 – 2023" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As
part of the Performance Share component, payment is limited to a maximum of 300% of the granted
proportionate target amount (cap).
In the reporting year, an amount of € 2.2 million (of which, € 0.8 million from the Performance Share Plan)
was paid out to the participants. The payment was subject to the condition that the individual participants
were in an unterminated employment relationship with a company in the PUMA Group as at 31
December 2022. Furthermore, € -0.1 million was released for this programme in the year under review
(previous year: release of € 0.2 million). This resulted in a provision for this programme at the end of the
financial year of
€ 0.5 million (previous year: € 2.8 million). The Performance Share Plan portion accounted for € 0.5 million
(previous year: € 1.3 million).
EXPLANATION OF THE "GAME CHANGER 2.0 – 2024" PROGRAMME
In 2021, the global "Game Changer 2.0 – 2024" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (45%), working capital as a percentage of
sales (15%), and sales (40%). As part of the Performance Share component, payment is limited to a
maximum of 300% of the granted proportionate target amount (cap). An employment relationship until
31 December 2023 is required. In the reporting year, € 0.2 million was released for this programme (previous
year: € 0.0 million) and a proportionate amount of € 1.1 million (previous year: € 0.5 million) was set aside for
this programme. This resulted in a provision for this programme at the end of the financial year of
€ 3.4 million (previous year: € 2.5 million). The Performance Share Plan portion accounted for € 1.2 million
(previous year: € 0.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
349
EXPLANATION OF THE "GAME CHANGER 2.0 – 2026" PROGRAMME
In 2023, the global "Game Changer 2.0 – 2026" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As
part of the Performance Share component, payment is limited to a maximum of 300% of the granted
proportionate target amount (cap). An employment relationship until 31 December 2024 is required. In the
reporting year, a prorated amount of € 1.8 million (previous year: € 0.0 million) was set aside for this
programme. This resulted in a provision for this programme at the end of the financial year of € 1.8 million
(previous year: € 0.0 million). The Performance Share Plan portion accounted for € 1.0 million (previous year:
€ 0.0 million).
EXPLANATION OF THE "ROAD 2 10B" PROGRAMME
In 2022, the "Game Changer 2.0" programme was replaced by the long-term incentive programme (LTIP)
"Road 2 10B". Participants in this programme consist of important professionals and managers within the
PUMA Group. The objective of this programme is to retain these employees in the Company on a long-term
basis and to allow them to share in the medium-term success of the Company.
The LTIP "Road 2 10B" consists of two plan parts, a Performance Cash Plan and a Performance Share Plan,
each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's financial
performance, while the Performance Share Plan gives a reward for the performance of the PUMA SE share
in the capital market.
The Performance Cash Plan is focused on the following targets: EBIT, sales and working capital as a
percentage of sales based on the three-year plan set by the Management Board of PUMA SE. For
participants in the programme with an employment relationship at Group level, the target achievement is
based on the following Group targets: EBIT (45%), sales (40%), and working capital as a percentage of sales
(15%). For participants in the programme with an employment relationship at the national or regional level,
50% of the target achievement is based on achieving the Group targets. The remaining 50% is based on
achieving the following targets at the national or regional level: EBIT (22.5%), sales (20%) and working
capital as a percentage of sales (7.5%). Payment is limited to a maximum of 200% of the granted
proportionate target amount (cap).
The Performance Share Plan is based on the performance of the PUMA share price. The term is up to five
years, divided into a three-year performance period and a subsequent two-year exercise period, in which
the virtual shares are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24
months after the end of the performance period). The average share price of the last 30 trading days before
the exercise date determines the payout value of a virtual share. The payout is limited to a maximum of
300% of the granted prorated target amount (cap) and is only made if an exercise hurdle of +10% share-price
appreciation is exceeded once during the performance period.
In the reporting year, € 0.6 million was released for this programme (previous year: € 0.0 million) and a
proportionate amount of € 0.8 million (previous year: € 4.7 million) was set aside for this programme. This
resulted in a provision for this programme at the end of the financial year of € 6.0 million (previous year:
€ 5.8 million). The Performance Share Plan portion accounted for € 0.4 (previous year: € 0.6 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
350
↗ T.70 VIRTUAL SHARES, NON-MANAGEMENT BOARD MEMBERS
Program addendum
Game Changer
2023
Game Changer
2024
Road 2.10b
Game Changer
2026
Issue date
1/1/2020
1/1/2021
1/1/2022
1/1/2023
Term
5
5
5
5
Years
Vesting period
3
3
3
3
Years
Base price at program start
67.69
86.23
106.95
51.86
EUR/share
Reference value at the end of the financial year
55.46
55.46
5.73
55.46
EUR/share
Weighted share price at the time of exercise
51.43
0
0
0
EUR/share
Participants in the year of issue
60
76
486
84
Persons
Participants at the end of the financial year
19
65
467
84
Persons
Number of virtual shares as of 1 January 2023
24,547
23,340
103,352
55,167
Shares
Number of virtual shares expired in the financial year
-222
-2,370
-10,467
0
Shares
Number of virtual shares added in the financial year (new participants)
0
470
2,674
0
Shares
Number of virtual shares exercised in the financial year
-15,334
0
0
0
Shares
Final number of virtual shares as of 31 December 2023
8,991
21,440
95,559
55,167
Shares
PUMA Annual Report 2023
↗ Consolidated Financial Statements
351
NOTES TO THE CONSOLIDATED INCOME
STATEMENT
19. SALES
The following table shows the Group's sales broken down by distribution channel and division:
↗ T.71 BREAKDOWN BY DISTRIBUTION CHANNEL (in € million)
2023
2022
Wholesale
6,468.6
6,513.7
Direct-to-consumer (DTC)
2,133.0
1,951.4
Total
8,601.7
8,465.1
↗ T.72 BREAKDOWN BY PRODUCT DIVISION (in € million)
2023
2022
Footwear
4,583.4
4,317.9
Apparel
2,763.0
2,896.3
Accessories
1,255.3
1,251.0
Total
8,601.7
8,465.1
20. OTHER OPERATING INCOME AND EXPENSES
According to the respective functions, other operating income and expenses include personnel, advertising,
sales and distribution expenses as well as rental and leasing expenditure, travel costs, legal and consulting
expenses and other general expenses. Rental and lease expenses associated with the Group's own retail
stores include revenue-based rental components.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
352
Other operating income and expenses are allocated based on functional areas as follows:
↗ T.73 OTHER OPERATING INCOME AND EXPENSES (in € million)
2023
2022
Sales and distribution expenses
2,799.0
2,677.2
Product management/merchandising
82.5
70.9
Research and development
89.0
82.2
Administrative and general expenses
450.9
465.8
Other operating expenses
3,421.3
3,296.0
Other operating income
-17.8
-0.1
Total
3,403.5
3,295.9
Thereof personnel expenses
894.4
836.3
Thereof scheduled depreciation
351.7
332.8
Thereof impairment losses
5.7
26.0
Thereof reversal of impairment losses
-11.9
0.0
Within the sales and distribution expenses, marketing/retail expenses account for a large proportion of the
operating expenses. In addition to advertising and promotional expenses, they also include expenses
associated with the Group's own retail activities. Other sales and distribution expenses include logistics
expenses and other variable sales and distribution expenses.
Impairment expenses in the reporting year amounted to € 5.7 million and related exclusively to right-of-use
assets (previous year: € 25.4 million). There were no impairment expenses for property, plant and
equipment (previous year: € 0.6 million). In contrast, there were reversals of impairment losses on
right-of-use assets amounting to € 11.9 million (previous year: € 0.0 million).
In the consolidated financial statements of PUMA SE, fees of € 2.0 million (previous year: € 1.9 million) are
recorded as operating expenses for the auditor of the consolidated financial statements, KPMG AG
Wirtschaftsprüfungsgesellschaft, Nuremberg, Germany. The audit fee is divided into fees for audit services
for the annual and consolidated financial statements as well as the audit review of the half-year financial
report in the amount of € 1.8 million (previous year: € 1.8 million) and other assurance services amounting to
€ 0.2 million (previous year: € 0.1 million) mainly for the audit of information in the sustainability report and
other minor services in the amount of € 0.0 million (previous year: none). In addition to expenses for
PUMA SE, the fees also include the fees of the domestic and foreign subsidiaries audited directly by the
Group auditor.
In financial year 2023, government grants amounted to a mid single-digit (previous year: low double-digit)
million euro amount. Government grants are deducted from the corresponding expenses.
Other operating income comprises income from the sale of fixed assets in the amount of € 8.5 million
(previous year: € 0.1 million), selling profit from finance leases totalling € 8.0 million (previous year:
€ 0.0 million), and rental income totalling € 1.4 million (previous year: € 0.0 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
353
Overall, other operating expenses include personnel costs, which consist of:
↗ T.74 PERSONNEL COSTS (in € million)
2023
2022
Wages and salaries
688.7
649.8
Social security contributions
101.2
91.9
Expenses from share-based payments with cash compensation
5.2
5.1
Expenses for retirement pension and other personnel expenses
99.3
89.5
Total
894.4
836.3
In addition, cost of sales includes personnel costs in the amount of € 6.2 million (previous year:
€ 10.2 million).
The average number of employees for the year was as follows:
↗ T.75 EMPLOYEES
2023
2022
Marketing/retail/sales
13,092
12,229
Research & development/product management
1,360
1,228
Administrative and general units
3,570
3,213
Total annual average
18,023
16,669
As of the end of the year, a total of 18,681 individuals were employed (previous year: 18,071).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
354
21. FINANCIAL RESULT
The financial result consists of:
↗ T.76 FINANCIAL RESULT (in € million)
2023
2022
Interest income
36.6
32.3
Interest income - lease receivables
1.2
0.0
Other
74.9
47.1
Financial income
112.7
79.4
Interest expense
-53.1
-15.2
Interest expense - lease liabilities
-46.8
-38.6
Interest expense of valuation of pension plans
-0.9
-0.6
Expenses from currency-conversion differences, net
-69.4
-2.2
Other
-85.9
-111.7
Financial expenses
-256.0
-168.3
Financial result
-143.3
-88.9
The "Other" item in the financial income of € 74.9 million (previous year: € 47.1 million) includes interest
components in connection with currency derivatives as well as hedging gains from freestanding derivatives.
The item "Other" in financial expenses includes, among other things, interest components in connection
with currency derivatives in the amount of € 58.1 million (previous year: € 69.9 million) and the loss on the
net monetary position associated with hyperinflation in the amount of € 23.7 million (previous year:
€ 27.8 million).
22. INCOME TAXES
↗ T.77 INCOME TAXES (in € million)
2023
2022
Current income taxes
140.6
152.5
Deferred taxes
-22.8
-25.1
Total
117.8
127.4
Current income taxes include € 0.8 million in out-of-period income. Deferred taxes include tax income of
€ 0.3 million (tax income in previous year: € 39.2 million), which is attributable to the occurrence or
resolution of temporary differences.
In general, PUMA SE and its German subsidiaries are subject to corporate income tax, plus a solidarity
surcharge and trade tax. Thus, a weighted mixed tax rate of 27.22% continued to apply for the financial year.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
355
Reconciliation of the theoretical tax expense with the effective tax expense:
↗ T.78 TAX RATE RECONCILIATION (in € million)
2023
2022
Earnings before income tax
478.3
551.7
Theoretical tax expense
Tax rate of the SE = 27.22% (previous year: 27.22%)
130.2
150.2
Tax rate difference with respect to other countries
-21.0
-6.9
Other tax effects:
Income tax for previous years
3.7
-9.7
Losses and temporary differences for which no tax claims were recognized
6.4
4.8
Changes in tax rates
-0.4
-0.6
Non-deductible expenses for tax purposes and non-taxable income and other effects
-1.1
-10.4
Effective tax expense
117.8
127.4
Effective tax rate
24.6%
23.1%
For the financial year 2023, the total tax advantage from previously uncapitalised tax losses, tax credits or
temporary differences from previous years which led to a reduction in deferred tax expenses, amounted to
€ 7.5 million (previous year: € 7.0 million). Deferred tax expenses due to an impairment of deferred tax
assets amounted to € 11.3 million in the financial year (previous year: € 5.0 million).
The tax effect resulting from items that were directly included in other comprehensive income can be found
in chapter 8.
INFORMATION ON THE EFFECTS OF GLOBAL MINIMUM TAXATION (PILLAR II)
On 23 May 2023, the IASB published amendments to IAS 12, which require companies subject to global
minimum taxation regulations to provide additional information on the impact of the global minimum
taxation in their annual financial statements for financial years beginning on or after 1 January 2023.
The PUMA Group falls within the scope of application of the global minimum taxation. The relevant
legislation entered into force on 28 December 2023 in Germany, the country in which the parent company of
the PUMA Group is based, and applies to financial years beginning after 31 December 2023. As the Minimum
Tax Act ("MinStG") applies to the financial year of the PUMA Group beginning on 1 January 2024, but was not
yet applicable to the financial year beginning on 1 January 2023, the PUMA Group has no associated ongoing
tax risk in financial year 2023. Taking into account the fact that the PUMA Group will be affected by the
minimum tax legislation, a preliminary valuation of the potential risk was carried out.
The valuation of the potential risk of Pillar II taxes is based on the most recent country-related reports and
financial statements available to the Group's business units. The Group has identified a potential risk of the
suspension of Pillar II taxes on profits made in Hong Kong and the United Arab Emirates. The potential risk
arises from the business units (mainly operating subsidiaries) in these countries, where the effective tax
rate is likely to be less than 15%.
If the MinStG had been applied for this financial year ending on 31 December 2023, the amount of the tax
increase determined according to the MinStG would have totalled approx. € 12 million. However, the actual
amounts of tax increases in the countries concerned in 2024 will depend on various factors.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
356
The PUMA Group makes use of the exemption under IAS 12.88A for the recognition of deferred taxes that
result from the introduction of global minimum taxation.
23. EARNINGS PER SHARE
The earnings per share are determined in accordance with IAS 33 by dividing the consolidated annual
surplus (consolidated net earnings) attributable to the shareholders of the parent company by the weighted
average number of outstanding shares.
The calculation is shown in the table below:
↗ T.79 EARNINGS PER SHARE
2023
2022
Net income attributable to the shareholders of PUMA SE (€ million)
304.9
353.5
Weighted average number of outstanding shares (shares)
149,852,251
149,649,158
Earnings per share (€)
2.03
2.36
Net income for calculating the diluted earnings per share (€ million)
304.9
353.5
Weighted average number of outstanding shares (shares)
149,852,251
149,649,158
Dilutive effect of conditionally issuable shares in connection with service agreements
0
12,107
Dilutive effect from share-based payments
19,651
2,573
Weighted average number of outstanding shares, diluted (shares)
149,871,901
149,663,837
Earnings per share (€) - diluted
2.03
2.36
PUMA Annual Report 2023
↗ Consolidated Financial Statements
357
ADDITIONAL INFORMATION
24. SEGMENT REPORTING
Segment reporting is based on geographical areas of responsibility in accordance with the PUMA internal
reporting structure, with the exception of stichd. The geographical area of responsibility corresponds to the
business segment. Sales, the operating result (EBIT) and other segment information are allocated to the
corresponding geographical areas of responsibility according to the registered office of the respective Group
company.
The internal management reporting includes the following reporting segments: Europe, EEMEA (Eastern
Europe, Middle East, Africa, India and Southeast Asia), North America, Latin America, Greater China, rest of
Asia/Pacific (excluding Greater China and Southeast Asia) and stichd. These are reported as reportable
business segments in accordance with the criteria of IFRS 8.
The reconciliation includes information on assets, liabilities, expenses and income in connection with
centralised functions that do not meet the definition of business segments in IFRS 8. Central expenses and
income include in particular central sourcing, central treasury, central marketing, impairment losses on
non-current assets and other global functions of the Company headquarters.
The Company's main decision-maker is defined as the entire Management Board of PUMA SE.
The external sales presented in the segment reporting includes sales from both the wholesale business and
own retail activities (direct-to-consumer business). The percentage breakdown of sales by wholesale
business and direct-to-consumer business at the segment level mainly aligns with the breakdown at the
Group level (see chapter 19). Exceptions to this are the Greater China segment, where wholesale sales
represent approximately 50%, and the stichd segment, which almost exclusively generates wholesale sales.
The business relationships between the companies in the segments are essentially based on prices that are
also agreed with third parties. With the exception of sales of goods by stichd amounting to € 37.1 million
(previous year: € 38.3 million), there are no significant internal sales, which is why they are not included in
the presentation.
The operating result (EBIT) of the business segments is defined as gross profit less the attributable other
operating expenses plus royalty and commission income and other operating income, but not considering
the costs of the central departments and the central marketing expenses.
The external sales, operating result (EBIT), inventories and trade receivables of the business segments are
regularly reported to the main decision-maker. Amounts recognised by the Group from the intra-group
profit elimination on inventories in connection with intra-group sales are not allocated to the business
segments in the way that they are reported to the main decision-maker. Investments, depreciation and non-
current assets at the level of the business segments are not reported to the main decision-maker.
Intangible assets are allocated to the business segments in the manner described in chapter 11. Liabilities,
the financial result and income taxes are not allocated to the business segments and are therefore not
reported to the main decision-maker at the business segment level.
Non-current assets and depreciation comprise the carrying amounts and depreciation of property, plant and
equipment, right-of-use assets and intangible assets during the past financial year. The investments
comprise additions to property, plant and equipment and intangible assets.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
358
Since PUMA is active in only one business area, the sporting goods industry, products are additionally
allocated according to the Footwear, Apparel and Accessories product segments in accordance with the
internal reporting structure.
SEGMENT REPORTING JAN-DEC 2023
↗ T.80 BUSINESS SEGMENTS (in € million)
External Sales
EBIT
Investments
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Europe
2,016.0
1,922.5
251.4
242.0
25.8
33.6
EEMEA
1,626.2
1,333.3
392.1
308.5
28.1
30.2
North America
2,095.9
2,531.4
295.0
398.9
75.5
67.6
Latin America
1,239.9
1,098.3
285.3
285.2
75.8
34.6
Greater China
582.2
521.3
84.5
20.2
10.3
20.3
Asia/Pacific (excluding
Greater China)
551.7
588.5
61.2
73.4
6.5
7.2
stichd
459.4
469.8
89.5
113.2
22.1
21.2
Total business segments
8,571.3
8,465.1
1,458.9
1,441.2
244.1
214.7
Depreciation and amortization
Inventories
Trade Receivables (third
parties)
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Europe
61.7
58.5
498.5
602.5
196.4
190.3
EEMEA
55.6
55.8
338.4
378.5
286.5
189.4
North America
83.3
71.2
466.1
739.3
204.9
259.2
Latin America
39.2
23.1
306.9
253.1
223.7
200.7
Greater China
29.3
39.7
109.6
179.1
40.6
44.5
Asia/Pacific (excluding
Greater China)
28.1
31.6
97.8
114.7
91.5
111.4
stichd
11.2
8.3
104.8
93.9
72.1
66.1
Total business segments
308.3
288.2
1,922.0
2,361.1
1,115.7
1,061.6
PUMA Annual Report 2023
↗ Consolidated Financial Statements
359
↗ T.81 CONTINUATION BUSINESS SEGMENTS (in € million)
Non-current assets
1-12/2023
1-12/2022
Europe
477.4
477.1
EEMEA
186.1
198.1
North America
741.8
750.4
Latin America
221.5
128.2
Greater China
91.8
86.2
Asia/Pacific (excluding Greater China)
121.7
149.4
stichd
226.0
209.6
Total business segments
2,066.4
1,999.1
↗ T.82 PRODUCT External Sales (€ million) Gross Profit Margin (in %)
External Sales
Gross Profit Margin
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Footwear
4,583.4
4,317.9
45.4%
44.9%
Apparel
2,763.0
2,896.3
47.8%
47.3%
Accessories
1,255.3
1,251.0
46.6%
47.4%
Total
8,601.7
8,465.1
46.3%
46.1%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
360
RECONCILIATIONS
↗ T.83 RECONCILIATIONS (in € million)
External Sales
1-12/2023
1-12/2022
Total business segments
8,571.3
8,465.1
Central Areas
30.4
0.0
Total
8,601.7
8,465.1
EBIT
1-12/2023
1-12/2022
Total business segments
1,458.9
1,441.2
Central Areas
-344.6
-364.4
Central expenses Marketing
-492.7
-436.2
Consolidation
0.0
0.0
EBIT
621.6
640.6
Financial Result
-143.3
-88.9
EBT
478.3
551.7
Investments
Depreciation and amortization
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Total business segments
244.1
214.7
308.3
288.2
Central Areas
55.5
49.3
43.4
44.6
Consolidation
0.0
0.0
0.0
0.0
Total
299.6
263.9
351.7
332.8
Inventories
Trade Receivables (third
parties)
Non-current assets
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Total business segments
1,922.0
2,361.1
1,115.7
1,061.6
2,066.4
1,999.1
Not allocated to the business
segments
-117.7
-116.0
2.8
3.3
237.7
211.0
Total
1,804.4
2,245.1
1,118.4
1,064.9
2,304.1
2,210.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
361
GEOGRAPHICAL INFORMATION
Sales revenue (with third parties) is reported in the geographical market in which it arises. Non-current
assets are allocated to the geographical market based on the registered office of the relevant subsidiary,
regardless of the segment structure.
↗ T.84 GEOGRAPHICAL INFORMATION BY COUNTRY (in € million)
External Sales
Non-current assets
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Germany, Europe
631.6
586.3
507.0
488.3
USA, North America
1,933.7
2,334.2
604.5
604.7
25. NOTES TO THE CASH FLOW STATEMENT
The cash flow statement was prepared in accordance with IAS 7 and is structured based on cash flows from
operating, investing and financing activities. The indirect method is used to determine the cash
outflow/inflow from operating activities. The gross cash flow, derived from earnings before income tax and
adjusted for non-cash income and expense items, is determined within the cash flow from operating
activities. Cash outflow/inflow from operating activities less investments in property, plant and equipment
as well as intangible assets is referred to as free cash flow.
The cash and cash equivalents reported in the cash flow statement include all cash and cash equivalents
shown in the statement of financial position under the item "Cash and cash equivalents", i.e. cash on hand,
checks and current bank balances including short-term financial investments.
The following table shows the cash and non-cash changes in financial liabilities in accordance with IAS 7.44
A:
↗ T.85 RECONCILIATION OF FINANCIAL LIABILITIES TO THE CASH INFLOW/ OUTFLOW FROM
FINANCING ACTIVITIES 2023 (in € million)
Non-cash changes
Notes
Balance
01/01/2023
Currency
changes
Other
Cash changes
Balance
31/12/2023
Financial liabilities
Lease liabilities
10
1,230.4
-44.9
254.9
-208.0
1,232.4
Current borrowings
13
75.9
-0.6
129.8
-59.1
145.9
Non-current borrowings
13
251.5
0.0
-125.0
299.6
426.1
Total
1,557.8
-45.6
259.7
32.5
1,804.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
362
↗ T.86 RECONCILIATION OF FINANCIAL LIABILITIES TO THE CASH INFLOW/ OUTFLOW FROM
FINANCING ACTIVITIES 2022 (in € million)
Non-cash changes
Notes
Balance
01/01/2022
Currency
changes
Other
Cash changes
Balance
31/12/2022
Financial liabilities
Lease liabilities
10
1,023.4
12.1
385.0
-190.0
1,230.4
Current borrowings
13
68.5
-1.1
0.0
8.4
75.9
Non-current borrowings
13
311.5
0.0
0.0
-60.0
251.5
Total
1,403.4
11.1
385.0
-241.6
1,557.8
The lease liabilities of € 1,232.4 million (previous year: € 1,230.4 million) break down into current lease
liabilities of € 212.4 million (previous year: € 200.2 million) and non-current lease liabilities of
€ 1,020.0 million (previous year: € 1,030.3 million).
26. OTHER FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES
OTHER FINANCIAL OBLIGATIONS
The Company has other financial obligations associated with license, promotional and advertising
agreements, which give rise to the following financial obligations as of the balance sheet date:
↗ T.87 COMMITMENTS FROM LICENSE, PROMOTIONAL AND ADVERTISING AGREEMENTS
(in € million)
2023
2022
From license, promotional and advertising agreements:
Due within one year
402.4
348.6
Due between one and five years
1,203.5
781.1
Due after five years
314.2
130.8
Total
1,920.2
1,260.5
As is customary in the industry, the promotional and advertising agreements provide for additional
payments on reaching pre-defined goals (e.g. medals, championships). These are contractually agreed, but
by their nature cannot be predicted exactly in terms of their timing and amount.
In addition, there are other financial obligations totalling € 246.5 million, of which, € 146.5 million relate to
the years from 2025. These include service agreements of € 234.2 million as well as other obligations of
€ 12.3 million.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
363
CONTINGENT LIABILITIES
Individual PUMA companies are involved in legal disputes arising from normal operating activities, e.g.
relating to intellectual property rights and employee matters. If an outflow of resources from these legal
disputes is classified as probable and the amount of the obligation can be reliably estimated, the risks
arising from these legal disputes are included in the other provisions. However, if the probability of
occurrence is classified as low, these legal disputes are recognised as contingent liabilities, which are
estimated at € 0.8 million in this financial year (previous year: € 3.1 million). Contingent liabilities also exist
due to uncertainties in the appraisal of the facts by the tax and customs authorities in India. Based on
external reports, the Management currently assumes that the receivables of Indian tax and customs
authorities will not result in any cash outflow. Overall, the PUMA Management considers that the impact of
the total of the contingent liabilities on the net assets, financial position and results of operations of the
Company is immaterial.
27. COMPENSATION OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD
Disclosures pursuant to Section 314(1) 6 HGB (German Commercial Code [Handelsgesetzbuch]) in
conjunction with Section 315e HGB.
COMPENSATION OF THE MEMBERS OF THE MANAGEMENT BOARD
The total compensation of the members of the Management Board in financial year 2023 was € 10.3 million
(previous year: € 11.9 million).
The total remuneration of the Management Board includes the share-based remuneration granted for the
financial year with a fair value of € 4.2 million (previous year: € 1.7 million) and 81,279 performance shares
were issued (previous year: 16,457). The total remuneration for the previous year also includes the issue of
30,968 virtual shares of the PUMA Monetary Unit Plan with a fair value of € 3.0 million.
TOTAL COMPENSATION OF FORMER MEMBERS OF THE MANAGEMENT BOARD
The total remuneration of former members of the Management Board and their surviving dependents
amounted to € 2023 million in financial year 0.7 (previous year: € 0.7 million).
In addition, there were defined benefit pension obligations to former members of the Management Board
and their widows/widowers amounting to € 2.4 million (previous year: € 2.5 million) as well as defined
contribution plans from deferred compensation of former members of the Management Board and
Managing Directors amounting to € 47.2 million (previous year: € 17.3 million). Both items are recognised
accordingly within pension provisions to the extent they were not offset against plan assets of an equal
amount.
COMPENSATION OF THE SUPERVISORY BOARD
The compensation paid to the Supervisory Board comprised fixed compensation and additional
compensation for committee activities, and amounted to a total of € 0.4 million (previous year:
€ 0.2 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
364
28. DISCLOSURES RELATED TO NON-CONTROLLING INTERESTS
The summarised financial information about subsidiaries of the Group in which non-controlling interests
exist is presented below. This financial information relates to all companies with non-controlling interests in
which the identical non-controlling shareholder holds an interest. The figures represent the amounts before
intercompany eliminations.
Evaluation of the control of companies with non-controlling interests:
The Group holds a 51% capital share in PUMA United North America LLC, PUMA United Canada ULC and
Janed Canada LLC (inactive company). With these companies, there are profit-sharing arrangements in
place which differ from the capital share for the benefit of the respective identical non-controlling
shareholder. PUMA receives higher license fees in exchange.
In addition, there is a shareholding in the capital and the result, amounting to 70%, in the company PUMA
United Aviation North America LLC.
The contractual agreements with these companies respectively provide PUMA with a majority of the voting
rights at the shareholder meetings, and thus the right of disposal regarding these companies. PUMA is
exposed to fluctuating returns from the sales-based license fees and from variable earnings. The Group
also controls the key activities of these companies. The companies are accordingly included in the
consolidated financial statements as subsidiaries with full consolidation with recognition of non-controlling
interests.
The non-controlling interests existing on the balance sheet date relate to PUMA United North America LLC,
PUMA United Canada ULC, Janed Canada, LLC (inactive) and PUMA United Aviation North America LLC at
€ 28.9 million (previous year: € 67.1 million).
The following tables show a summary of the financial information for subsidiaries with non-controlling
interests:
↗ T.88 ASSETS AND LIABILITIES (in € million)
2023
2022
Current assets
112.9
105.8
Non-current assets
8.6
10.3
Current liabilities
85.3
40.4
Non-current liabilities
0.0
0.0
Net assets
36.3
75.7
Net assets attributable to non-controlling interests
28.9
67.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
365
↗ T.89 INCOME STATEMENT (in € million)
2023
2022
Sales
411.8
452.2
Net income
56.8
72.0
Profit attributable to non-controlling interests
55.7
70.9
Other comprehensive income of non-controlling interests
4.3
4.1
Total comprehensive income of non-controlling interests
54.2
75.0
Dividends paid to non-controlling interests
92.4
73.3
↗ T.90 CASH (in € million)
2023
2022
Net cash from operating activities
101.8
79.4
Net cash used in investing activities
-0.3
0.0
Net cash used in financing activities
-101.4
-80.1
Changes in cash and cash equivalents
0.0
-0.4
29. RELATED PARTY RELATIONSHIPS
In accordance with IAS 24, relationships to related companies and persons that control or are controlled by
the PUMA Group must be reported. All natural persons and companies that can be controlled by PUMA, that
can exercise relevant control over the PUMA Group or that are under the relevant control of another related
party of the PUMA Group are considered to be related companies or persons within the meaning of IAS 24.
As of 31 December 2023, there was one shareholding in PUMA SE that exceeded 20% of the voting rights.
This is held by the Pinault family via several companies that the family controls (in order of proximity to the
Pinault family: Financière Pinault S.C.A., Artémis S.A.S. and Kering S.A.). The share of Kering S.A. in
PUMA SE amounted to 1.47% of the share capital at 18 September 2023. Combined, the shareholdings of
Artémis S.A.S. and Kering S.A. amounted to 29.99% of the share capital of PUMA SE at 18 September 2023.
Since Artémis S.A.S. and Kering S.A. hold more than 20% of the voting rights in PUMA SE, they are
presumed to have significant influence according to IAS 28.5 and IAS 28.6. They and all other companies
directly or indirectly controlled by Financière Pinault S.C.A. that are not included in the consolidated
financial statements of PUMA SE are considered as related parties in the following.
In addition, the disclosure obligation pursuant to IAS 24 extends to transactions with associated companies
as well as transactions with other related companies and persons.
Transactions with related companies and persons largely concern sales of goods and licensing agreements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
366
The following overview illustrates the scope of the business relationships:
↗ T.91 DELIVERIES AND SERVICES RENDERED AND RECEIVED (in € million)
Deliveries and services rendered
Deliveries and services received
2023
2022
2023
2022
Companies included in the Artémis Group
2.1
1.7
0.0
0.1
Other related companies and persons
0.0
0.0
0.0
0.0
Total
2.1
1.7
0.0
0.1
↗ T.92 NET RECEIVABLES AND LIABILITIES (in € million)
Net receivables from
Liabilities to
2023
2022
2023
2022
Companies included in the Artémis Group
0.3
0.3
0.0
0.0
Other related companies and persons
0.0
0.0
0.0
0.0
Total
0.3
0.3
0.0
0.0
Receivables from related companies and persons are not subject to value adjustments.
Classification of the remuneration of key management personnel in accordance with IAS 24.17:
The members of key management personnel in accordance with IAS 24 are the Management Board and the
Supervisory Board. These are counted as related parties.
In financial year 2023, the remuneration of the members of the Management Board of PUMA SE for short-
term benefits amounted to € 6.1 million (previous year: € 7.2 million), for termination benefits to
€ 0.0 million (previous year: € 0.0 million) and the share-based payment € 1.4 million (previous year:
€ -0.5 million). Furthermore, just like in the previous year, no remuneration was granted in the form of
other long-term benefits or in the form of post-employment benefits in the reporting year. Accordingly, the
total expenditure for the reporting year amounted to € 7.5 million (previous year: € 6.7 million).
In financial year 2023, the remuneration of the members of the Supervisory Board of PUMA SE for short-
term benefits amounted to € 0.4 million (previous year: € 0.2 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
367
30. CORPORATE GOVERNANCE
In November 2023, the Management Board and the Supervisory Board submitted the required compliance
declaration with respect to the recommendations issued by the Government Commission German Corporate
Governance Code pursuant to Section 161 of the German Stock Corporation Act (Aktiengesetz – AktG) and
published it on the Company's website (https://about.PUMA.com). Please also refer to the corporate
governance statement in accordance with section 289f and section 315d HGB (Handelsgesetzbuch, German
Commercial Code) in the Combined Management Report.
31. EVENTS AFTER THE BALANCE SHEET DATE
No events with any significant effect on the net assets, financial position and results of operations of the
PUMA Group occurred after the balance sheet date.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
368
32. DATE OF RELEASE
The Management Board of PUMA SE released the consolidated financial statements on 7 February 2024 for
distribution to the Supervisory Board. The task of the Supervisory Board is to review the consolidated
financial statements and state whether it approves them.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
This is a translation of the German version. In case of doubt, the German version shall apply.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
369
APPENDIX 1 OF THE CONSOLIDATED FINANCIAL STATEMENT
MEMBERS OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD AND THEIR MANDATES
STATUS: 31 DECEMBER 2023
MEMBERS OF THE MANAGEMENT BOARD AND THEIR MANDATES
Arne Freundt
Chief Executive Officer (CEO)
Hubert Hinterseher
Chief Financial Officer (CFO)
Anne-Laure Descours
Chief Sourcing Officer (CSO)
Maria Valdes (since 1 January 2023)
Chief Product Officer (CPO)
MEMBERS OF THE SUPERVISORY BOARD AND THEIR MANDATES
Héloïse Temple-Boyer (first elected on 18 April 2019)
(Chair)
Paris, France
Deputy CEO of ARTÉMIS S.A.S., Paris/France
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises
2
• Kering S.A., Paris/France
• Christie's International Plc., London/ United Kingdom
• CAA LL.C., Los Angeles/USA
• Giambattista Valli S.A.S., Paris/France
• Société d'exploitation de l’hebdomadaire le Point S.A., Paris/France
• Pinault Collection, Paris/France
2
All mandates are mandates within the ARTÈMIS/KERING-Group. Only Kering S.A. is a listed company.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
370
Thore Ohlsson (first elected on 21 May 1993)
(Deputy Chair)
Falsterbo, Sweden
President of Elimexo AB, Falsterbo/Sweden
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
• Tomas Frick AB, Vellinge/Sweden
• Orrefors Kosta Boda AB, Kosta/Sweden
• Infinitive AB, Malmö/Sweden
• Friskvårdcenter AB, Malmö/Sweden
• Totestories AB, Vellinge/Sweden
Jean-Marc Duplaix (first elected on 24 May 2023)
Paris, France
Deputy CEO of Kering S.A., Paris/France
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises
3:
• Balenciaga S.A., Paris/Frankreich
Jean-François Palus (first elected on 16 June 2007, until 24 May 2023)
Paris, France
Managing Director of Guccio Gucci S.p.A., Florence/Italy
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
• Financière Pinault S.C.A., Paris/France
• Sonova Management S.A.S., Paris/France
• Bureau Veritas S.A., Paris/France
Fiona May (first elected on 18 April 2019)
Calenzano, Italy
Independent Management Consultant
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
3
The mandate is a mandate within the Kering Group. Kering S.A. is a listed company. Balenciaga S.A. is not listed
PUMA Annual Report 2023
↗ Consolidated Financial Statements
371
Martin Köppel (first elected on 25 July 2011)
(Employees‘ Representative)
Adelsdorf, Germany
Chair of the Works Council of PUMA SE
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
Bernd Illig (first elected on 9 July 2018)
(Employees‘ Representative)
Bechhofen, Germany
Teamhead IT Endpoint Management of PUMA SE
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
SUPERVISORY BOARD COMMITTEES
Personnel Committee
• Héloïse Temple-Boyer (Chair)
• Fiona May
• Martin Köppel
Audit Committee
• Jean-Marc Duplaix (Chair since 24 May 2023)
• Thore Ohlsson (Chair until 24 May 2023)
• Héloïse Temple-Boyer (until 24 May 2023)
• Bernd Illig
Nominating Committee
• Héloïse Temple-Boyer (Chair)
• Jean-François Palus (until 24 May 2023)
• Fiona May
• Jean-Marc Duplaix (since 24 May 2023)
Sustainability Committee
• Fiona May (Chair)
• Héloïse Temple-Boyer
• Martin Köppel
PUMA Annual Report 2023
↗ Consolidated Financial Statements
372
DECLARATION BY THE LEGAL REPRESENTATIVES
We state to the best of our knowledge that the consolidated financial statements give a true and fair view of
the net assets, financial position and results of operations of the Group in accordance with the applicable
accounting principles, and that the Group management report, which is combined with the Management
report of PUMA SE for the financial year 2023, provides a true and fair view of the course of the development
and performance of the business and the position of the Group, together with a description of the principal
risks and opportunities associated with the expected performance of the Group.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
PUMA Annual Report 2023
↗ Consolidated Financial Statements
373
INDEPENDENT AUDITOR’S REPORT
For the Consolidated Financial Statements and Group Management Report we have issued an unqualified
auditor’s report. The English language text below is a translation of the auditor’s report. The original
German text shall prevail in the event of any discrepancies between the English translation and the
German original. We do not accept any liability for the use of, or reliance on, the English translation or for
any errors or misunderstandings that may derive from the translation.
To PUMA SE, Herzogenaurach
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE
COMBINED MANAGEMENT REPORT
OPINIONS
We have audited the consolidated financial statements of PUMA SE, Herzogenaurach, and its subsidiaries
(the Group), which comprise the consolidated statement of financial position as of December 31, 2023, the
consolidated income statement, the consolidated statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the financial year from
January 1 to December 31, 2023, and notes to the consolidated financial statements, including a summary of
significant accounting policies. In addition, we have audited the management report of the Company and the
Group (combined management report) of PUMA SE for the financial year from January 1 to
December 31, 2023.
In accordance with German legal requirements, we have not audited the content of those components of the
combined management report specified in the "Other Information" section of our auditor's report.
The combined management report contains cross-references that are not provided for by law and which are
marked as unaudited. In accordance with German legal requirements, we have not audited the cross-
references and the information to which the cross-references refer.
In our opinion, on the basis of the knowledge obtained in the audit,
• the accompanying consolidated financial statements comply, in all material respects, with the IFRSs as
adopted by the EU, and the additional requirements of German commercial law pursuant to Section
315e (1) HGB [Handelsgesetzbuch: German Commercial Code] and, in compliance with these
requirements, give a true and fair view of the assets, liabilities, and financial position of the Group as of
December 31, 2023, and of its financial performance for the financial year from January 1 to
December 31, 2023, and
• the accompanying combined management report as a whole provides an appropriate view of the Group's
position. In all material respects, this combined management report is consistent with the consolidated
financial statements, complies with German legal requirements and appropriately presents the
opportunities and risks of future development. Our opinion on the combined management report does
not cover the content of those components of the combined management report specified in the "Other
Information" section of the auditor's report. The combined management report contains cross-
references that are not provided for by law and which are marked as unaudited. Our audit opinion does
not extend to the cross-references and the information to which the cross-references refer.
Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated financial statements and of the combined management
report.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
374
BASIS FOR THE OPINIONS
We conducted our audit of the consolidated financial statements and of the combined management report in
accordance with Section 317 HGB and the EU Audit Regulation No 537/2014 (referred to subsequently as
"EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial
Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany]
(IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's
Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management
Report" section of our auditor's report. We are independent of the group entities in accordance with the
requirements of European law and German commercial and professional law, and we have fulfilled our
other German professional responsibilities in accordance with these requirements. In addition, in
accordance with Article 10 (2)(f) of the EU Audit Regulation, we declare that we have not provided non-audit
services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis for our opinions on the consolidated financial
statements and on the combined management report.
KEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the financial year from January 1 to December 31, 2023.
These matters were addressed in the context of our audit of the consolidated financial statements as a
whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.
Revenue recognition cut-off for wholesale customers
For information on the accounting policies applied, please refer to Sections 2 and 19 in the notes to the
consolidated financial statements.
THE FINANCIAL STATEMENT RISK
The consolidated financial statements of PUMA SE for financial year 2023 report revenue of
EUR 8,601.7 million. Revenue includes revenue of EUR 6,468.6 million from the sale of goods to wholesale
customers.
The Group recognizes revenue from the sale of goods to wholesale customers when it fulfils a performance
obligation through the transfer of a promised asset to a customer. An asset is transferred when (or as) the
customer obtains control of that asset. In accordance with the transfer of control, revenue from wholesale
customers is recognized at a point in time in the amount to which the Group is entitled.
The Management Board of PUMA SE has defined the criteria for the recognition of revenue at a point in time
in a group-wide accounting policy and implemented processes for correct recognition and cut-off.
In the final weeks prior to the reporting date, a range of transactions with wholesale customers take place
with individual contractual agreements on the transfer of risk. In addition, there are internally defined and
externally communicated revenue targets for the financial year, which represent a key benchmark for
measuring corporate success.
There is the risk for the consolidated financial statements that revenue in the reporting year is overstated
due to it being recognized in the wrong period, meaning that it is not recorded on an accrual basis.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
375
OUR AUDIT APPROACH
In order to audit revenue recognition cut-off for wholesale customers, we assessed the design, setup and
effectiveness of the internal controls relating to outgoing goods and the acceptance of goods and invoicing,
in particular the determination and verification of the correct transfer of control. In addition, we reviewed
the presentation of revenue recognition in the group-wide accounting policy to ensure compliance with
IFRS 15.
Furthermore, we assessed revenue recognition cut-off for wholesale customers by reconciling invoices with
the related orders, underlying contracts and external delivery records. This was based on revenue
recognized at the end of December 2023 and selected using a mathematical/statistical procedure.
OUR OBSERVATIONS
PUMA SE's approach to revenue recognition cut-off with wholesale customers is appropriate.
Impairment testing of right-of-use assets for retail stores
For information on the accounting policies applied, please refer to Sections 2 and 10 in the notes to the
consolidated financial statements.
THE FINANCIAL STATEMENT RISK
As of December 31, 2023, right-of-use assets of EUR 1,087.7 million are recognized in the consolidated
financial statements of PUMA SE. A significant portion of the right-of-use assets is attributable to retail
stores (EUR 464.2 million). Right-of-use assets amount to 16.4% of total assets and thus have a material
influence on the Company's net assets.
Owing to the large number of leases and the resulting transactions, the Company has set up group-wide
processes and controls for the measurement of leases.
Right-of-use assets for retail stores are tested for impairment at the level of the individual retail stores as
cash-generating units. The impairment test compares the carrying amount of the cash-generating unit with
its recoverable amount. The Company determines the recoverable amount for the retail stores indicating
potential impairment by using the discounted cash flow method. If the carrying amount exceeds the
recoverable amount, an impairment loss is recognized for the right-of-use asset of the cash-generating
unit. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use.
Impairment testing of right-of-use assets for retail stores is complex and based on a range of assumptions
that require judgment. Among others, these include the business and earnings performance of the retail
store for the next year, the assumed growth rates, the applied discount rate and the use of extension
options. The Company recognized impairment losses in the amount of EUR 5.7 million for right-of-use
assets for retail stores during the financial year.
In particular owing to the judgments for measuring right-of-use assets for retail stores, there is the risk for
the consolidated financial statements that an impairment of right-of-use assets may not be identified.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
376
OUR AUDIT APPROACH
Using the information obtained during our audit, we assessed whether there were any indicators of
impairment for right-of-use assets for retail stores. In doing so, we thoroughly examined the Company's
approach to determining the need to recognize impairment losses and, based on the information obtained in
the course of our audit, assessed whether there were any indications of impairment that had not been
identified by the Company.
With the involvement of our valuation specialists, for a sample of retail stores selected based on risk, we
then assessed (among other things) the appropriateness of the Company's calculation method. For this
purpose we discussed the expected business and earnings development for the retail stores selected in this
sample and the assumed growth rates with those responsible for planning. Where accounting judgments
were made for determining the lease term, we examined these judgments to determine whether the
underlying assumptions were comprehensible in light of the prevailing market conditions and risks in the
industry.
We also assessed the accuracy of the Company's previous forecasts for the affected right-of-use assets by
comparing the budgets from the previous financial year for the selected retail stores in the sample with the
actual results, and we analyzed any deviations. Further, we compared the assumptions and data underlying
the discount rates with our own assumptions and publicly available data. We also assessed whether the
calculation method for the discount rate was appropriate.
We verified the computational accuracy of the carrying amount of the right-of-use assets determined by
PUMA SE for the retail stores included in the sample.
In order to take forecast uncertainty into account, we examined the impact of potential changes in the
discount rate, earnings performance and long-term growth rates on the value in use by calculating
alternative scenarios for the selected sample and comparing these with the values stated by the Company
(sensitivity analysis).
OUR OBSERVATIONS
The calculation method used for impairment testing of right-of-use assets for retail stores is appropriate
and in line with the accounting policies to be applied.
The Company's assumptions and data used for the measurement of the right-of-use assets for retail stores
are appropriate.
OTHER INFORMATION
The Management Board and/or the Supervisory Board is responsible for the other information. The other
information comprises the following components of the combined management report, whose content was
not audited:
• the Company's and Group's separate combined non-financial report, which is referred to in the
combined management report, and
• the combined corporate governance statement for the Company and Group, which is included in a
separate section of the combined management report, and
• information extraneous to combined management reports and marked as unaudited.
The other information also includes the annual report, which is expected to be made available to us after
the date of this independent auditor's report. The other information does not include the consolidated
financial statements, the combined management report information audited for content and our auditor's
report thereon.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
377
Our opinions on the consolidated financial statements and on the combined management report do not
cover the other information, and consequently we do not express an opinion or any other form of assurance
conclusion thereon.
In connection with our audit, our responsibility is to read the other information and, in so doing, to consider
whether the other information
• is materially inconsistent with the consolidated financial statements, with the combined management
report information audited for content or our knowledge obtained in the audit, or
• otherwise appears to be materially misstated.
RESPONSIBILITIES OF THE MANAGEMENT BOARD AND THE SUPERVISORY BOARD FOR THE
CONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT
The Management Board is responsible for the preparation of consolidated financial statements that comply,
in all material respects, with IFRSs as adopted by the EU and the additional requirements of German
commercial law pursuant to Section 315e (1) HGB and that the consolidated financial statements, in
compliance with these requirements, give a true and fair view of the assets, liabilities, financial position,
and financial performance of the Group. In addition, the Management Board is responsible for such internal
control as it has determined necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and
misappropriation of assets) or error.
In preparing the consolidated financial statements, the Management Board is responsible for assessing the
Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable,
matters related to going concern. In addition, they are responsible for financial reporting based on the going
concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or
there is no realistic alternative but to do so.
Furthermore, the Management Board is responsible for the preparation of the combined management
report that, as a whole, provides an appropriate view of the Group’s position and is, in all material respects,
consistent with the consolidated financial statements, complies with German legal requirements, and
appropriately presents the opportunities and risks of future development. In addition, the Management
Board is responsible for such arrangements and measures (systems) as they have considered necessary to
enable the preparation of a combined management report that is in accordance with the applicable German
legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the
combined management report.
The Supervisory Board is responsible for overseeing the Group's financial reporting process for the
preparation of the consolidated financial statements and of the combined management report.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF
THE COMBINED MANAGEMENT REPORT
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and whether the combined
management report as a whole provides an appropriate view of the Group’s position and, in all material
respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit,
complies with the German legal requirements and appropriately presents the opportunities and risks of
future development, as well as to issue an auditor’s report that includes our opinions on the consolidated
financial statements and on the combined management report.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
378
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally
Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW)
will always detect a material misstatement. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements and this combined
management report.
We exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements and of
the combined management report, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than
the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal controls.
• Obtain an understanding of internal control relevant to the audit of the consolidated financial statements
and of arrangements and measures (systems) relevant to the audit of the combined management report
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of these systems.
• Evaluate the appropriateness of accounting policies used by the Management Board and the
reasonableness of estimates made by the Management Board and related disclosures.
• Conclude on the appropriateness of the Management Board's use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group's ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's
report to the related disclosures in the consolidated financial statements and in the combined
management report or, if such disclosures are inadequate, to modify our respective opinions. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the Group to cease to be able to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements present the underlying
transactions and events in a manner that the consolidated financial statements give a true and fair view
of the assets, liabilities, financial position and financial performance of the Group in compliance with
IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to
Section 315e (1) HGB.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express opinions on the consolidated financial statements and on
the combined management report. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our opinions.
• Evaluate the consistency of the combined management report with the consolidated financial
statements, its conformity with [German] law, and the view of the Group's position it provides.
• Perform audit procedures on the prospective information presented by the Management Board in the
combined management report. On the basis of sufficient appropriate audit evidence we evaluate, in
particular, the significant assumptions used by the Management Board as a basis for the prospective
information, and evaluate the proper derivation of the prospective information from these assumptions.
We do not express a separate opinion on the prospective information and on the assumptions used as a
basis. There is a substantial unavoidable risk that future events will differ materially from the
prospective information.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
379
We also provide those charged with governance with a statement that we have complied with the relevant
independence requirements, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, the actions taken or safeguards
applied to eliminate independence threats.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation
precludes public disclosure about the matter.
OTHER LEGAL AND REGULATORY REQUIREMENTS
REPORT ON THE ASSURANCE ON THE ELECTRONIC RENDERING OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND THE COMBINED MANAGEMENT REPORT PREPARED FOR PUBLICATION PURPOSES IN
ACCORDANCE WITH SECTION 317 (3A) HGB
We have performed assurance work in accordance with Section 317 (3a) HGB to obtain reasonable
assurance about whether the rendering of the consolidated financial statements and the combined
management report (hereinafter the "ESEF documents") contained in the electronic file „PUMA KA 2023.zip“
(SHA256-Hashwert: 3d9c82efdcc3657b21661fc4c90debfbfafac65be5b3f152055611b47a544d9b) made available
and prepared for publication purposes complies in all material respects with the requirements of
Section 328 (1) HGB for the electronic reporting format ("ESEF format"). In accordance with German legal
requirements, this assurance work extends only to the conversion of the information contained in the
consolidated financial statements and the combined management report into the ESEF format and
therefore relates neither to the information contained in these renderings nor to any other information
contained in the file identified above.
In our opinion, the rendering of the consolidated financial statements and the combined management
report contained in the electronic file made available, identified above and prepared for publication
purposes complies in all material respects with the requirements of Section 328 (1) HGB for the electronic
reporting format. Beyond this assurance opinion and our audit opinion on the accompanying consolidated
financial statements and the accompanying combined management report for the financial year from
January 1 to December 31, 2023, contained in the "Report on the Audit of the Consolidated Financial
Statements and the Combined Management Report" above, we do not express any assurance opinion on the
information contained within these renderings or on the other information contained in the file identified
above.
We conducted our assurance work on the rendering of the consolidated financial statements and the
combined management report contained in the file made available and identified above in accordance with
Section 317 (3a) HGB and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of
Financial Statements and Management Reports Prepared for Publication Purposes in Accordance with
Section 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibility in accordance therewith is further described
below. Our audit firm applies the IDW Standard on Quality Management 1: Requirements for Quality
Management in Audit Firms (IDW QMS 1) (09.2022).
Owing to the conversion process selected by the Company concerning the information in the notes in iXBRL
format (block tagging), the consolidated financial statements converted into the ESEF format are not
machine-readable in a fully meaningful respect. There is significant legal uncertainty regarding the legal
conformity of the Management Board's interpretation that meaningful machine-readability of the structured
information in the notes is not explicitly required by Commission Delegated Regulation (EU) 2019/815 for the
block tagging of the notes, which thus also constitutes an inherent uncertainty of our audit.
The Company's Management Board is responsible for the preparation of the ESEF documents including the
electronic rendering of the consolidated financial statements and the combined management report in
PUMA Annual Report 2023
↗ Consolidated Financial Statements
380
accordance with Section 328 (1) sentence 4 item 1 HGB and for the tagging of the consolidated financial
statements in accordance with Section 328 (1) sentence 4 item 2 HGB.
In addition, the Company's Management Board is responsible for such internal control that they have
considered necessary to enable the preparation of ESEF documents that are free from material intentional
or unintentional non-compliance with the requirements of Section 328 (1) HGB for the electronic reporting
format.
The Supervisory Board is responsible for overseeing the process of preparing the ESEF documents as part
of the financial reporting process.
Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material
intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB. We exercise
professional judgment and maintain professional skepticism throughout the assurance work. We also:
• Identify and assess the risks of material intentional or unintentional non-compliance with the
requirements of Section 328 (1) HGB, design and perform assurance procedures responsive to those
risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our
assurance opinion.
• Obtain an understanding of internal control relevant to the assurance on the ESEF documents in order to
design assurance procedures that are appropriate in the circumstances, but not for the purpose of
expressing an assurance opinion on the effectiveness of these controls.
• Evaluate the technical validity of the ESEF documents, i.e. whether the file made available containing the
ESEF documents meets the requirements of Commission Delegated Regulation (EU) 2019/815, as
amended as of the reporting date, on the technical specification for this electronic file.
• Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the
audited consolidated financial statements and the audited combined management report.
• Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance
with the requirements of Articles 4 and 6 of the Commission Delegated Regulation (EU) 2019/815, as
amended as of the reporting date, enables an appropriate and complete machine-readable XBRL copy of
the XHTML rendering.
FURTHER INFORMATION PURSUANT TO ARTICLE 10 OF THE EU AUDIT REGULATION
We were elected as group auditor at the Annual General Meeting on May 24, 2023. We were engaged by the
Supervisory Board on November 21, 2023. We have been the group auditor of PUMA SE without interruption
since financial year 2022.
We declare that the opinions expressed in this auditor's report are consistent with the additional report to
the Audit Committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).
OTHER MATTER – USE OF THE AUDITOR'S REPORT
Our auditor's report must always be read together with the audited consolidated financial statements and
the audited combined management report as well as the examined ESEF documents. The consolidated
financial statements and combined management report converted to the ESEF format – including the
versions to be entered in the German Company Register [Unternehmensregister] – are merely electronic
renderings of the audited consolidated financial statements and the audited combined management report
and do not take their place. In particular, the ESEF report and our assurance opinion contained therein are
to be used solely together with the examined ESEF documents made available in electronic form.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
381
GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT
The German Public Auditor responsible for the engagement is Matthias Koeplin.
Nuremberg, February 9, 2024
KPMG AG
Wirtschaftsprüfungsgesellschaft
Koeplin
Wirtschaftsprüfer
[German Public Auditor]
Behrendt
Wirtschaftsprüferin
[German Public Auditor]
PUMA Annual Report 2023
↗ Additional Information
382
ADDITIONAL INFORMATION
The PUMA Share
383
PUMA Year-on-Year Comparison
385
PUMA Group Development
387
PUMA Annual Report 2023
↗ Additional Information
383
THE PUMA SHARE
The 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
thus 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
€ 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 / -
21.8%) 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
423 thousand shares in financial year 2023.
↗ T.01 KEY DATA PER SHARE*
2023
2022
2021
2020
2019
2018
2017
End of year price
€
50.52
56.70
107.50
92.28
68.35
42.70
36.30
Highest price listed
€
67.22
108.00
114.70
92.28
72.95
52.50
39.14
Lowest price listed
€
44.36
43.85
80.42
42.14
43.00
31.70
24.35
Daily trading volume (Ø)
amount in
thousands
423
519
281
423
387
444
67
Earnings per share
€
2.03
2.36
2.07
0.53
1.76
1.25
9.09
Gross cashflow per share
€
6.43
6.14
5.49
3.50
4.71
2.66
2.21
Free cashflow (before acquisitions) per
share
€
2.46
1.19
1.85
1.85
2.22
1.00
0.86
Shareholders' equity per share
€
17.23
16.97
15.23
11.79
12.84
11.52
11.09
Dividend per share
€
0.82
0.82
0.72
0.16
0.50
0.35
1.25**
*
Disclosures for the prior periods were adjusted retroactively to the 1:10 stock split carried out in the second quarter of 2019
** one time/special dividend
PUMA Annual Report 2023
↗ Additional Information
384
↗ G.01 PUMA SHARE PERFORMANCE / TRADING VOLUME
↗ G.02 SHARE DEVELOPMENT - REBASED
The PUMA share has been registered for the regulated market on German stock exchanges since 1986. It is
listed in the Prime Standard Segment and the Mid-Cap Index MDAX of the German Stock Exchange
(Deutsche Börse). Moreover, membership in the FTSE4Good index was once again confirmed.
PUMA Annual Report 2023
↗ Additional Information
385
PUMA YEAR-ON-YEAR COMPARISON
↗ T.02 PUMA YEAR-ON-YEAR COMPARISON (in € million)
2023
2022
Deviation
Sales
Consolidated sales
8,601.7
8,465.1
1.6%
- Footwear
4,583.4
4,317.9
6.1%
- Apparel
2,763.0
2,896.3
-4.6%
- Accessories
1,255.3
1,251.0
0.3%
Result of operations
Gross profit
3,986.6
3,902.7
2.1%
EBIT
621.6
640.6
-3.0%
EBT
478.3
551.7
-13.3%
Net earnings attributable to shareholders of PUMA SE
304.9
353.5
-13.7%
Profitability
Gross profit margin
46.3%
46.1%
0.2%pt
EBT margin
5.6%
6.5%
-1.0%pt
Net earnings margin
3.5%
4.2%
-0.6%pt
Return on capital employed (ROCE)
25.1%
28.4%
-3.3%pt
Return on equity (ROE)
11.8%
13.9%
-2.1%pt
Balance sheet
Total equity
2,582.3
2,538.8
1.7%
- Equity ratio
38.9%
37.5%
1.4%pt
Working capital
1,177.3
1,086.8
8.3%
- in % of consolidated sales
13.7%
12.8%
0.8%pt
Cash flow and investments
Gross cash flow
964.1
918.9
4.9%
Free cash flow
369.0
177.5
107.9%
Investments (before acquisitions)
300.4
263.6
13.9%
PUMA Annual Report 2023
↗ Additional Information
386
2023
2022
Deviation
Employees
Number of employees (annual average)
18,023
16,669
8.1%
Sales per employee (k€)
477.3
507.8
-6.0%
PUMA share
Share price (in €)
50.52
56.70
-10.8%
Average outstanding shares (in million)
149.85
149.65
0.1%
Number of shares outstanding as of 31 Dec. (in million shares)
149.84
149.76
0.1%
Earnings per share (in €)
2.03
2.36
-14.0%
Market capitalization
7,570
8,491
-10.8%
Average trading volume (amount/day)
423,200
519,477
-18.5%
PUMA Annual Report 2023
↗ Additional Information
387
PUMA GROUP DEVELOPMENT
↗ T.03 PUMA GROUP DEVELOPMENT (in € million)
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Sales
Consolidated sales
8,601.7
8,465.1
6,805.4
5,234.4
5,502.2
4,648.3
4,135.9
3,626.7
3,387.4
2,972.0
- Change in %
1.6%
24.4%
30.0%
-4.9%
18.4%
12.4%
14.0%
7.1%
14.0%
-0.4%
- Footwear
4,583.4
4,317.9
3,163.6
2,367.6
2,552.5
2,184.7
1,974.5
1,627.0
1,506.1
1,282.7
- Apparel
2,763.0
2,896.3
2,517.3
1,974.1
2,068.7
1,687.5
1,441.4
1,333.2
1,244.8
1,103.1
- Accessories
1,255.3
1,251.0
1,124.5
892.7
881.1
776.1
719.9
666.5
636.4
586.3
Result of operations
Gross profit
3,986.6
3,902.7
3,257.8
2,458.0
2,686.4
2,249.4
1,954.3
1,656.4
1,540.2
1,385.4
- Gross profit margin
46.3%
46.1%
47.9%
47.0%
48.8%
48.4%
47.3%
45.7%
45.5%
46.6%
Royalty and commission income
38.5
33.8
23.9
16.1
25.1
16.3
15.8
15.7
16.5
19.4
EBIT
621.6
640.6
557.1
209.2
440.2
337.4
244.6
127.6
96.3
128.0
- EBIT margin
7.2%
7.6%
8.2%
4.0%
8.0%
7.3%
5.9%
3.5%
2.8%
4.3%
EBT
478.3
551.7
505.3
162.3
417.6
313.4
231.2
118.9
85.0
121.8
- EBT margin
5.6%
6.5%
7.4%
3.1%
7.6%
6.7%
5.6%
3.3%
2.5%
4.1%
Net earnings attributable to shareholders of PUMA SE
304.9
353.5
309.6
78.9
262.4
187.4
135.8
62.4
37.1
64.1
- Net margin
3.5%
4.2%
4.5%
1.5%
4.8%
4.0%
3.3%
1.7%
1.1%
2.2%
PUMA Annual Report 2023
↗ Additional Information
388
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Expenses
Marketing/retail
1,643.2
1,578.5
1,309.1
1,050.2
1,112.1
931.2
822.9
732.3
697.6
599.7
Personnel
900.6
846.5
712.4
583.7
640.5
553.8
549.1
493.1
483.8
425.3
Balance sheet
Total assets
6,640.4
6,772.7
5,728.3
4,684.1
4,378.2
3,207.2
2,853.8
2,765.1
2,620.3
2,549.9
Total equity
2,582.3
2,538.8
2,278.5
1,763.9
1,902.3
1,722.2
1,656.7
1,722.2
1,619.3
1,618.3
- Equity ratio
38.9%
37.5%
39.8%
37.7%
43.4%
53.7%
58.1%
62.3%
61.8%
63.5%
Working capital
1,177.3
1,086.8
727.9
465.8
549.4
503.9
493.9
536.6
532.9
455.7
- thereof: inventories
1,804.4
2,245.1
1,492.2
1,138.0
1,110.2
915.1
778.5
718.9
657.0
571.5
Cash flow
Free cash flow
369.0
177.5
276.2
276.0
330.0
172.9
128.5
49.7
-98.9
39.3
Investments (incl. acquisitions)
300.4
263.6
202.4
151.0
218.4
130.2
122.9
91.1
79.5
96.4
Profitability
Return on equity (ROE)
11.8%
13.9%
13.6%
4.5%
13.8%
10.9%
8.2%
3.6%
2.3%
4.0%
Return on capital employed (ROCE)
25.1%
28.4%
31.9%
15.1%
29.6%
25.8%
20.7%
10.3%
7.9%
11.5%
PUMA Annual Report 2023
↗ Additional Information
389
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Additional information
Number of employees (year-end)
18,681
18,071
16,125
14,374
14,332
12,894
11,787
11,495
11,351
11,267
Number of employees (annual average)
18,023
16,669
14,846
13,016
13,348
12,192
11,389
11,128
10,988
10,830
PUMA share*
Share price (in €)
50.52
56.70
107.50
92.28
68.35
42.70
36.30
24.97
19.87
17.26
Earnings per share (in €)
2.03
2.36
2.07
0.53
1.76
1.25
0.91
0.42
0.25
0.43
Average outstanding shares (in million)
149.85
149.65
149.59
149.56
149.52
149.47
149.43
149.40
149.40
149.40
Number of shares outstanding as of 31 Dec.
(in million shares)
149.84
149.76
149.61
149.58
149.55
149.51
149.46
149.40
149.40
149.40
Market capitalization
7,570
8,491
16,083
13,804
10,222
6,384
5,426
3,730
2,968
2,578
*
Disclosures for the prior periods were adjusted retroactively to the 1:10 stock split carried out in the second quarter of 2019
PUMA Annual Report 2023
↗ Imprint
390
IMPRINT
PUBLISHER
PUMA SE
PUMA Way 1
91074 Herzogenaurach
Germany
+49 (0)9132 81-0
www.about.puma.com
CORPORATE COMMUNICATIONS
Kerstin Neuber
Senior Director Corporate Communications
kerstin.neuber@puma.com
INVESTOR RELATIONS
Gottfried Hoppe
Director Investor Relations & Finance Strategy
gottfried.hoppe@puma.com
PEOPLE & ORGANIZATION
Dietmar Knoess
Vice President People & Organization
dietmar.knoess@puma.com
SUSTAINABILITY
Stefan Seidel
Senior Director Corporate Sustainability
stefan.seidel@puma.com
Veronique Rochet
Senior Director Sustainability
veronique.rochet@puma.com
DESIGN AND LAYOUT
3st kommunikation GmbH
www.3st.de
REALISATION
Produced inhouse with firesys
www.firesys.de
HALF-YEAR FINANCIAL REPORT
JANUARY TO JUNE 2024
2
CONTENT
Key Figures
3 - 4
Interim Management Report
- General Economic Conditions
5
- Brand and Strategy Update
5 - 8
- Sales and Earnings Development
9 - 11
- Net Assets and Financial Position
12
- Outlook
13
Condensed Interim Consolidated Financial Statements
- Balance Sheet
14
- Income Statement
15
- Statement of Comprehensive Income
16
- Cashflow Statement
17
- Statement of Changes in Equity
18
- Operating Segments
19 - 20
- Notes to the Interim Consolidated Financial Statements
21 – 27
Management Board / Supervisory Board
28
Financial Calendar
29
3
Arne Freundt, CEO:
“With our second quarter operating performance,
we fully delivered on our outlook for the quarter and
are well on track to deliver on our outlook for the full
year. I could not be prouder of our team and our
strong retail partnerships, which were key to
delivering this result in an environment of increased
currency headwinds, stressed supply chains and
macroeconomic and geopolitical challenges that are
weighing on consumer sentiment around the world.
With view to our strong orderbook for the second
half of the year, we reiterate our sales growth
outlook in the MSD range and are narrowing our full-
year EBIT outlook range to € 620 – 670 million EBIT
in light of these external factors.
With our continued focus on a good sell-through and
disciplined sell-in, we were able to improve our
wholesale business in all regions, except EEMEA.
With our strong order book for the second half of
the year, we will see further improvement in our
wholesale business in the coming quarters. The
robust demand for the PUMA brand continues to be
driven by our great product newness and innovation
which we launched in the past months. There is
more to come in the second half of the year.
Key Figures
1-6/2024
1-6/2023
Devi-
€ million
€ million
ation
Sales
4,219.6
4,308.3
-2.1%
Gross profit margin
47.2%
45.7%
Operating result (EBIT)
276.2
290.9
-5.1%
Net income
129.3
172.3
-25.0%
- in % of sales
3.1%
4.0%
Total assets
6,966.3
6,899.7
1.0%
Equity ratio in %
38.1%
37.1%
Working capital
1,643.7
1,693.0
-2.9%
Gross cash flow
388.1
491.4
-21.0%
Free cash flow (before acquisitions)
-204.4
-341.4
Earnings per share (in €)
0.86
1.15
-25.0%
Gross cash flow per share (in €)
2.59
3.28
-21.0%
Free cash flow per share (before acquisitions) (in €)
-1.36
-2.28
Share price at end of the reporting period (in €)
42.87
55.12
-22.2%
Market capitalisation at end of the reporting period
6,397
8,255
-22.5%
Investments in property, plant and equipment and intangible assets
125.4
158.0
-20.7%
4
On the performance side, ULTRA, PUMA’s fastest
football boot, Deviate Nitro Elite 3, PUMA’s fastest
running shoe, and MB.04, PUMA’s latest version of
its bestseller signature shoe with LaMelo Ball will be
the key newness and innovations for the second half
of 2024. Together with our new design partner
Salehe Bembury, we will continue to stir up the
basketball market with new disruptive designs in the
coming year.
On the Sportstyle side, we are continuing to see
strong sell-through with our family footwear retail
partners, while we are making good progress in the
transition of our Sportstyle Prime offer with Palermo,
Suede XL and Easy Rider. We are very encouraged
by the first launches of Speedcat in the elevated
distribution channels globally and by the great
feedback of our retail partners on our product line-
up. We are very confident about the future success
of the low-profile silhouette and are happy to
welcome Rosé, the iconic K-Pop star, as great new
ambassador for this emerging trend.
We continue to focus our efforts on increasing the
brand desirability for the long-term growth of the
PUMA brand. With our first global brand campaign
in ten years, we have done the first steps and
improved our brand consideration with consumers.
Delivering great innovation and newness are further
pillars of that strategy. With the Euros, Copa
America and now the Olympics, we have the perfect
stage to create great brand visibility and credibility
in our unmissable “fireglow” shoe colourway and
showcase the superiority of our Nitro foam
technology which enhances the performance of elite
and everyday athletes. We are very proud of the
achievements of our athletes and are grateful to
celebrate these amazing sporting events and iconic
moments together with them.”
5
Interim Management Report
GENERAL ECONOMIC CONDITIONS
According to the summer forecast published by the
Kiel Institute for the World Economy (ifw Kiel) on 13
June 2024, the global economy has expanded at a
moderate pace so far this year. The main reason for
this was that production in the emerging economies
- and particularly in China - grew much more
strongly than before. In the advanced economies,
on the other hand, economic expansion continued at
a somewhat slower pace overall.
BRAND AND STRATEGY UPDATE
Making Progress in Brand Elevation
With many important events such as the Olympic
Games, UEFA Euro 2024 and CONMEBOL Copa
America, 2024 is undoubtedly a year of sports.
PUMA took this as an opportunity to launch our
biggest-ever brand campaign to elevate the
brand, one of the cornerstones of our strategy
together with increasing product excellence and
improving our distribution quality.
The campaign “FOREVER. FASTER. - See The
Game Like We Do” conveys the brand’s unique
connection with speed and is communicated across
the entire media mix, such as Social Media, TV, PR,
Out Of Home Media and Points of Sale worldwide.
Following the launch in April, from which we
received very positive feedback, PUMA followed
up with additional chapters of the campaign fully
dedicated to Euro 2024, Copa America and our
best-in-class athletes at these events such as
Neymar Jr., Xavi Simons, Kai Havertz and Cody
Gakpo.
Great Performances by PUMA Athletes and
Teams
The great performance of our sponsored teams and
athletes underscored our credibility as a sports
brand across the world. At Euro 2024, our players
and teams ensured fantastic visibility throughout
the tournament, with PUMA-Teams Austria and
Switzerland
putting
up
some
fantastic
performances to progress to the knock-out stages.
The success of our club teams also contributed to
our brand visibility, as Manchester City secured
the Premier League title for the fourth consecutive
year, while Borussia Dortmund reached the final
of the Champions League, Europe’s most coveted
competition.
With
French
defender
Theo
Hernández and US midfielder Weston McKenny,
PUMA signed two young players at the top of their
game to become brand ambassadors.
In track and field, PUMA athletes broke three world
records in the first half of 2024, underscoring the
great performance of our spikes. Ukrainian high
jumper Yaroslava Mahuchickh showed her
incredible form ahead of the Olympic Games by
breaking the 37-year-old high jump world record
with a 2.10m jump. Pole vaulter Armand “Mondo”
Duplantis once again soared to new heights,
breaking his own world record for the ninth time by
raising the bar to 6.25m. In March, Devynne
Charlton from the Bahamas set a new 60m hurdles
world record. Our track and field athletes also shone
at the European Athletics Championships in Rome,
winning seven gold, ten silver and seven bronze
medals.
Supported
by
our
award-winning
NITROTM
technology, our road running athletes also went
from strength to strength this year. For the first time
in decades, PUMA athletes reached the podium
at international marathon majors, with Vivian
Cheruiyot coming in third in Paris and Edna Kiplagat
taking third position in Boston.
At the Olympic Games in Paris, PUMA equips 17
federations and more than 350 athletes across a
range of different sports. Most recently, PUMA
joined forces with the Athletic Federation of India as
an Official Kit Partner. PUMA will also outfit seven
federations at the Paralympic Games in Paris.
Throughout this year of sports, PUMA enjoyed great
visibility with the eye-catching “fireglow” colours of
our football boots and track and field spikes worn by
our athletes.
6
To build on our strong portfolio of brand
ambassadors on the entertainment side, we
welcomed Rosé, a member of one of the best-
selling girl groups of all time, South Korean musical
quartet BLACKPINK. With a dedicated fanbase
across the globe, the K-Pop idol will support classic
franchises in PUMA’s Sportstyle category including
the Palermo.
Rebounding in China
PUMA has focused on strengthening its credibility as
a sports brand in China, for example by sponsoring
the Diamond League event in Xiamen and by
being among the top 10 brands at the Wuxi
Marathon, one of the world’s largest running
events. To capture the popularity of basketball in the
country, PUMA took its NBA ambassador Scoot
Henderson on a tour of China.
The announcement of our collaboration with K-Pop
star Rosé also struck a chord with Chinese
consumers, as it generated PUMA’s biggest social
media stir in China over the past years. The Formula
1 Grand Prix in China gave us the opportunity to
showcase the best of the PUMA brand and the
Formula 1 collection in a successful live event on
Chinese e-commerce platform Tmall, which
engaged millions of viewers. PUMA also leveraged
its ambassadors from the world of music and
entertainment to further build up brand momentum
in Sportstyle. In 2024, PUMA signed singer-
songwriter Henry Lau and featured him in a
successful dance campaign which created great
engagement on social media.
Henry Lau also helped PUMA promote locally
designed apparel collections, which incorporated
local fitting and design details and resonated well
with consumers. Our Palermo and Speedcat
sneakers became bestselling franchises, with the
Speedcat immediately selling out at its initial launch.
These and other measures resulted in PUMA
continuing to build up momentum to rebound
in China despite the difficult market environment.
This was underscored by the results of the recent
6/18 shopping holiday, where PUMA clearly
exceeded last year’s results.
Winning in the USA
As official partners of CONMEBOL, the Copa
America tournament in the US offered a great
opportunity to position PUMA as a performance
brand in the country and enjoy great visibility. We
harnessed the appeal of our football brand
ambassadors Neymar Jr. and Christian Pulisic,
who hosted events ahead of the tournament to
create excitement.
In road running, our NITROTM technology propelled
Fiona O’Keeffe and Dakotah Lindwurm to first and
third at the US Olympic Marathon Trials,
underscoring our successful return to performance
running. Our lightweight NITROFOAM™, which
offers exceptional rebound, also features in our
basketball style All-Pro NITRO™, which became
the official shoe of leading amateur basketball circuit
NXTPro Hoops. PUMA used the cultural appeal of
motorsports to launch an exclusive collection with
Ferrari for the Miami Grand Prix, which sold out
immediately.
We drove brand heat through our strong
partnerships with ambassadors from music and
entertainment, especially PUMA’s power couple
Rihanna and A$AP Rocky. Rihanna continues to
make waves with the back-to-school editions of her
sneakers Creeper and Avanti while A$AP Rocky
teamed up with PUMA to present the Inhale
sneaker, an immediate sell-out success. PUMA
doubled down on its culture-first approach to
basketball by signing trailblazing footwear designer
Salehe Bembury, to reimagine the signature shoe
category in basketball.
In terms of organisation, we welcomed Tara McRae
as Senior Vice President Marketing and Brand
Strategy North America. She will lead all elements of
the North American Marketing organisation to drive
profitable growth and build brand equity. Tara had
already worked at PUMA previously but spent the
past four years as the Chief Marketing Officer &
Digital Officer at Clark’s.
To be closer to our most important entertainment
and music ambassadors, we announced that we
would open a creative space in Los Angeles that will
design campaigns and products for the US market.
To support future growth in the US market from an
operational point of view, PUMA opened a new
distribution centre in Arizona.
7
Ongoing Momentum in Performance
The success of our athletes highlights the
performance of our products and our design and
development teams introduced exciting new
innovations to the market in the first half of 2024.
In football, the seventh generation of the FUTURE
boot empowers our athletes, such as Neymar Jr., Kai
Havertz and Julia Grosso to experience a new level
of freedom of movement. PUMA also unveiled the
sixth edition of its speed boot ULTRA with a new
high-performance outsole design, which generated
great sell through.
The gripping performances of PUMA-Teams Austria
and Switzerland led to a sell-out success of the
jerseys, while the fan shirt campaign with German
comparison platform Check24 generated fantastic
visibility in the summer of sports.
In Running, the third iteration of PUMA’s award-
winning running shoe Deviate NITROTM is
engineered with even more NITROFOAM™ to deliver
supreme cushioning and responsiveness. Our
innovations are also recognised by running experts
around the world, as PUMA’s ultimate race-day
running shoe FAST-R2 was awarded the prestigious
Spanish CORREDOR award for the best new shoe of
the year.
Our running models will feature prominently in our
new global partnership with HYROX, the world
series of fitness racing. As part of the agreement,
PUMA will develop a full range of innovative HYROX
apparel and bespoke footwear models.
In Baskeball, PUMA used the great momentum of
the signature basketball shoes with NBA-star
LaMelo Ball, to expand into a signature lifestyle
series with him. The LaFrancé sneaker gets its
inspiration and name from LaMelo’s official lifestyle
brand specialising in designer streetwear. PUMA
introduced the latest signature shoe with WNBA
star Breanna Stewart, the Stewie 3, which apart
from its striking design incorporates the latest of
PUMA’s performance technology.
In Golf, Cobra launched a new driver series called
DARKSPEED. It was designed by aerospace
engineers and is built for extraordinary speed and
distance.
Building Up Traction with Sportstyle Newness
PUMA presented significant product newness in its
Sportstyle offering. Maximising the current terrace
and skate trends, we launched new versions of our
successful Palermo and Suede XL sneakers, which
are continuing to resonate well with our consumers.
The classic running style Easy Rider, with its
sought-after T-toe style, was also brought back for
a new generation, with great feedback from our
accounts and customers. To raise awareness for
PUMA’s other Classics franchises, we launched the
communications platform “Rewrite the Classics”.
PUMA also helped create the next trends, as we
showed with the successful introduction of our low-
profile styles Mostro and Speedcat. We believe
that given our amazing archive of low-profile
sneakers, we can own and lead this emerging trend.
By taking PUMA’s new styles to the catwalk and
collaborating with A$AP Rocky, renowned fashion
designer Kid Super and others for Paris Fashion
Week, PUMA secured in-depth coverage from the
most prestigious fashion magazines in the world.
Sought-after collaborations with British rapper
Skepta, who introduced the Skope Forever sneaker
and the football-inspired “Más Tiempo” collection,
and a collection with best-selling anime series One
Piece, were a sell-out success.
Making Strong Progress in Sustainability
In the first half of 2024, PUMA achieved significant
milestones in its sustainability journey. We scaled up
our RE:FIBRE technology, which transforms textile
waste into new materials, and made millions of our
replica shirts for 35 clubs and all teams at Euro 2024
with this recycled material.
In footwear, we introduced a commercial version of
our RE:SUEDE for sale, following a successful two-
year
composting
experiment.
This
project
demonstrated that a special version of our classic
Suede sneaker can be turned into compost under
certain industrial conditions.
8
We are encouraged that these initiatives and others,
which are part of PUMA’s FOREVER. BETTER.
sustainability strategy, were recognised, when
TIME Magazine listed PUMA on the “World’s Most
Sustainable Companies” ranking as the only
company in our industry.
Organisational Changes
In May, Harsh Saini and Roland Krüger were
elected as independent members of the PUMA’s
Supervisory Board for a period of three years.
Harsh Saini is a sustainability expert and has worked
for brands such as the Body Shop, Nike and the Fung
Group wheras Roland Krüger is an expert in the field
of retail management, marketing, and digitalisation.
He currently serves as a member of the Board of
Directors of Dyson Holdings.
9
Sales and Earnings Development
SECOND QUARTER 2024
Sales
Sales grew by 2.1% (ca) to € 2,117.3 million, while
currencies continued to be a headwind, negatively
impacting sales in euro terms by approximately € 50
million in Q2 2024 (-0.2% reported).
Sales in the Americas region increased by 9.0% (ca)
to € 887.5 million, with both the U.S. and LATAM
contributing to the growth and showing a sequential
improvement. The Asia/Pacific region recorded sales
growth of 1.9% (ca) to € 411.9 million, driven by
continued growth in Greater China and sequential
improvement in the rest of APAC. In the EMEA
region, sales decreased by 4.3% (ca) to € 817.9
million due to a decline in EEMEA from a strong prior
year quarter (EEMEA grew +111% ca in Q2 2023),
while Europe returned to growth.
PUMA's Wholesale business declined by 3.3% (ca)
to € 1,529.6 million, due to the decline in EEMEA. In
all other regions, the wholesale business improved
quarter-on-quarter, driven by continued good sell-
through and improved inventory levels in the trade.
Our Direct-to-Consumer (DTC) business grew by
19.5% (ca) to € 587.7 million, supported by
continued brand momentum and scaled back
promotions. Sales in owned & operated retail stores
increased 16.5% (ca) and e-commerce increased
of 27.8% (Q2 2023: 24.3%), in line with
expectations.
Sales in Footwear were flat (ca) at € 1,097.0 million
on the back of a strong prior year quarter (Q2 2023:
+18.2% ca) with all Performance categories as well
as Sportstyle Core performing very well. Sales in
Apparel grew by 9.2% (ca) to € 705.6 million, while
sales in Accessories declined by 4.7% (ca) to € 314.8
million.
Gross Profit Margin
The gross profit margin improved by 200 basis
points to 46.8% (Q2 2023: 44.8%). Significant
headwinds from currencies were more than offset by
a favourable product and distribution channel mix as
well as tailwinds from sourcing and freight.
Operating Expenses
Operating expenses (OPEX) increased by 4.3% to
€ 879.3 million (Q2 2023: € 843.4 million). The
increase was primarily due to the continued growth
of our DTC business and ramp-up costs of
warehouse and digital infrastructure projects while
all non-demand creating costs remained under
strong
control.
In
addition,
currency-related
headwinds weighed on the OPEX ratio, which
increased by 180 basis points to 41.5% (Q2 2023:
39.8%).
Operating Result (EBIT)
The operating result (EBIT) increased by 1.6% to
€ 117.2 million (Q2 2023: € 115.3 million), despite
negative currency effects on sales, gross profit
margin and OPEX ratio. Consequently, the EBIT
margin improved by 10 basis points to 5.5% (Q2
2023: 5.4%).
Financial Result
The financial result decreased to € -42.6 million (Q2
2023: € -23.0 million) due to higher currency related
losses and a lower interest result.
Net Income and Earnings per Share
Consequently, net income decreased by 23.8% to
€ 41.9 million (Q2 2023: € 55.0 million) and earnings
per share amounted to € 0.28 (Q2 2023: € 0.37).
The development of the operating result and net
income is fully in line with our expectations that the
second half of the year, particularly in the fourth
quarter, will be stronger than the first half, and that
net income will improve in line with the operating
result outlook for FY 2024.
10
Sales by regions and product divisions
€ million
2024
2023
Euro
currency
adjusted
2024
2023
Euro
currency
adjusted
Breakdown by regions
EMEA
817.9
846.0
-3.3%
-4.3%
1,673.7
1,729.7
-3.2%
-2.2%
Americas
887.5
861.5
3.0%
9.0%
1,677.5
1,689.4
-0.7%
5.1%
Asia/Pacific
411.9
413.3
-0.3%
1.9%
868.5
889.2
-2.3%
1.2%
Total
2,117.3
2,120.7
-0.2%
2.1%
4,219.6
4,308.3
-2.1%
1.3%
Breakdown by product divisions
Footwear
1,097.0
1,126.0
-2.6%
0.0%
2,278.4
2,336.4
-2.5%
1.6%
Apparel
705.6
663.3
6.4%
9.2%
1,313.7
1,311.0
0.2%
3.5%
Accessories
314.8
331.3
-5.0%
-4.7%
627.5
660.9
-5.1%
-4.0%
Total
2,117.3
2,120.7
-0.2%
2.1%
4,219.6
4,308.3
-2.1%
1.3%
growth rates
Second Quarter
First Half-Year
Q2
growth rates
1-6
11
FIRST HALF-YEAR 2024
Sales
Sales increased by 1.3% (ca) to € 4,219.6 million.
Currencies were a major headwind, negatively
impacting sales in euro terms by approximately
€ 150 million in H1 2024 (-2.1% reported).
The Americas region led the growth with a sales
increase of 5.1% (ca) to € 1,677.5 million, followed
by the Asia/Pacific region with a sales increase of
1.2% (ca) to € 868.5 million, while sales in the EMEA
region declined by 2.2% (ca) to € 1,673.7 million.
PUMA’s Wholesale business declined by 3.1% (ca)
to € 3,137.7 million as a result of disciplined sell-in
and focus on good sell-through in preparation for a
stronger sell-in in H2 2024. Our Direct-to-Consumer
(DTC) business increased by 16.7% (ca) to
€ 1,081.9 million. Sales in owned & operated retail
stores increased 16.0% (ca) and e-commerce
increased 18.1% (ca). This resulted in an increased
DTC share of 25.6% (H1 2023: 22.8%).
Among product divisions, sales in Footwear
increased by 1.6% (ca) to € 2,278.4 million and
Apparel grew by 3.5% (ca) to € 1,313.7 million.
Accessories decreased by 4.0% (ca) to € 627.5
million.
Gross Profit Margin
The gross profit margin increased by 150 basis
points to 47.2% (H1 2023: 45.7%). Major
headwinds from currencies were more than offset by
a favourable product and distribution channel mix as
well as tailwinds from sourcing and freight.
Operating Expenses
Operating expenses (OPEX) increased by 1.9% to
€ 1,724.6 million (H1 2023: € 1,691.7 million). The
continued growth of our DTC business and ramp-up
costs for infrastructure projects were the main
drivers of this increase. As a result, the OPEX ratio
was up 160 basis points to 40.9% (H1 2023:
39.3%), also impacted by currency headwinds.
Result before Interest, Taxes, Depreciation
and Amortisation (EBITDA)
The result before interest, taxes, depreciation and
amortisation (EBITDA) decreased to € 445.8 million
in the first half of 2024 (last year: € 455.6 million).
Operating Result (EBIT)
The operating result (EBIT) decreased by 5.1% to
€ 276.2 million (H1 2023: € 290.9 million), mainly
due to negative currency effects on sales, the gross
profit margin and the OPEX ratio, which resulted in
an EBIT margin of 6.5% (H1 2023: 6.8%).
Financial Result
The financial result decreased to € -69.4 million (H1
2023: € -30.8 million) due to a lower interest result
and higher currency related losses.
Net Income and Earnings per Share
Consequently, net income decreased by 25.0% to
€ 129.3 million (H1 2023: € 172.3 million) and
earnings per share amounted to € 0.86 (H1 2023:
€ 1.15).
The development of the operating result and net
income is fully in line with our expectations that the
second half of the year, particularly in the fourth
quarter, will be stronger than the first half, and that
net income will improve in line with the operating
result outlook for FY 2024.
12
Net Assets and Financial Position
Working Capital
The working capital decreased by 2.9% to € 1,643.7
million (30 June 2023: € 1,693.0 million).
Inventories decreased by 8.6% to € 1,961.1 million
(30 June 2023: € 2,145.9 million). The quarter-on-
quarter increase mainly reflects the stronger order
book for the second half of the year. The Group's
total inventory remains at a healthy level, while
quality has further improved. Trade receivables
increased by 3.4% to € 1,394.7 million (30 June
2023: € 1,348.4 million). On the liabilities side, trade
payables increased by 13.1% to € 1,647.9 million
(30 June 2023: € 1,457.3 million).
Cashflow and Liquidity Situation
The free cash flow was at € -204.4 million in the first
half of 2024 (H1 2023: € -341.4 million). As of
30 June 2024, PUMA had cash and cash equivalents
of € 271.8 million (30 June 2023: € 307.9 million).
In addition, the PUMA Group had available credit
lines totalling € 1,411.7 million as of 30 June 2024
(30 June 2023: € 1,592.5 million). Unutilised credit
lines amounted to € 595.4 million as of 30 June 2024
(30 June 2023: € 846.0 million).
13
Outlook 2024
Global Economy
According to the summer forecast published by the
Kiel Institute for the World Economy (ifw Kiel) on 13
June 2024, the moderate global economic expansion
is likely to continue this year. The experts at ifw Kiel
expect an increase in global production of around
3.2% for 2024 as a whole. There are risks with
regard to a longer than previously expected
restrictive monetary policy. Further risks for the
global economy are primarily of a geopolitical nature
and result not least from the uncertainties
surrounding the US presidential election.
Investments
Investments in fixed assets of around € 300 million
are planned for 2024. The majority of these
investments will be in infrastructure in order to
create the operating conditions required for the
planned long-term growth. The investments mainly
concern own distribution and logistics centers,
investments in the expansion and modernisation of
the company's own retail stores and investments in
IT infrastructure.
As in previous years, PUMA will continue to focus on
managing
short-term
challenges
without
compromising the brand's medium- and long-term
momentum. Our sales growth and market share
gains will take priority over short-term profitability.
The very positive feedback from our retail partners
and consumers on our 2024/2025 product line-up
and go-to-market strategies gives us confidence for
the medium and long term success and continued
growth of PUMA
Outlook 2024
The first half of the year was characterised by a
volatile environment with persistent currency
headwinds, stressed supply chains and muted
consumer sentiment globally. In this challenging
environment, PUMA continued to make progress on
its strategic initiatives of brand elevation, product
excellence and distribution quality with special focus
on the U.S. and China, and focused on strong sell-
through and the best possible service to its retail
partners, brand ambassadors and consumers.
Based on the results of the first half year and
supported by building brand momentum as well as
by our strong orderbook for the second half of the
year, PUMA reiterates its outlook for the financial
year 2024 of mid-single-digit currency-adjusted
sales growth. Taking into account the external
factors of higher freight costs, changing duties and
continued muted consumer sentiment, especially in
China, we narrow our outlook for the operating
result (EBIT) to a range of € 620 million to € 670
million. We expect net income to change in 2024 in
line with the operating result.
.
14
Condensed Interim Consolidated Financial Statements (IFRS)
June 30,'24
June 30,'23
Devi-
Dec. 31,'23
€ million
€ million
ation
€ million
ASSETS
Cash and cash equivalents
271.8
307.9
-11.7%
552.9
Inventories *
1,961.1
2,145.9
-8.6%
1,804.4
Trade receivables *
1,394.7
1,348.4
3.4%
1,118.4
Other current assets *
493.8
374.3
31.9%
385.6
Other current assets
101.3
77.2
31.3%
69.8
Current assets
4,222.7
4,253.6
-0.7%
3,931.1
Deferred tax assets
282.8
327.6
-13.7%
296.1
Right-of-use assets
1,069.2
1,063.2
0.6%
1,087.7
Other non-current assets
1,391.6
1,255.3
10.9%
1,325.6
Non-current assets
2,743.7
2,646.1
3.7%
2,709.3
Total Assets
6,966.3
6,899.7
1.0%
6,640.4
LIABILITIES AND EQUITY
Current borrowings
466.6
360.6
29.4%
145.9
Trade payables *
1,647.9
1,457.3
13.1%
1,499.8
Other current liabilities *
558.0
718.3
-22.3%
631.3
Current lease liabilities
213.0
197.1
8.1%
212.4
Other current liabilities
15.8
73.5
-78.4%
47.7
Current liabilities
2,901.3
2,806.7
3.4%
2,537.2
Non-current borrowings
357.8
427.6
-16.3%
426.1
Deferred tax liabilities
18.4
51.5
-64.3%
12.4
Pension provisions
24.0
20.1
19.2%
22.5
Non-current lease liabilities
982.2
997.3
-1.5%
1,020.0
Other non-current liabilities
29.0
34.4
-15.8%
40.0
Non-current liabilities
1,411.3
1,530.8
-7.8%
1,520.9
Equity
2,653.7
2,562.2
3.6%
2,582.3
Total Liabilities and Equity
6,966.3
6,899.7
1.0%
6,640.4
* included in working capital
Balance Sheet
15
Q2/2024
Q2/2023
Devi-
1-6/2024
1-6/2023
Devi-
€ million
€ million
ation
€ million
€ million
ation
Sales
2,117.3
2,120.7
-0.2%
4,219.6
4,308.3
-2.1%
Cost of sales
-1,126.7
-1,170.9
-3.8%
-2,230.0
-2,341.6
-4.8%
Gross profit
990.6
949.8
4.3%
1,989.6
1,966.8
1.2%
- in % of sales
46.8%
44.8%
+2.0 pp
47.2%
45.7%
+1.5 pp
Royalty and commission income
5.9
8.9
-33.4%
11.2
15.9
-29.5%
Other operating income and expenses
-879.3
-843.4
4.3%
-1,724.6
-1,691.7
1.9%
Operating result (EBIT)
117.2
115.3
1.6%
276.2
290.9
-5.1%
- in % of sales
5.5%
5.4%
+0.1 pp
6.5%
6.8%
-0.2 pp
Financial result
-42.6
-23.0
85.7%
-69.4
-30.8
>100%
Earnings before taxes (EBT)
74.6
92.4
-19.3%
206.7
260.1
-20.5%
- in % of sales
3.5%
4.4%
-0.8 pp
4.9%
6.0%
-1.1 pp
Taxes on income
-18.4
-23.0
-20.3%
-51.4
-65.0
-20.9%
- Tax rate
24.6%
24.9%
-0.3 pp
24.9%
25.0%
-0.1 pp
Net income attributable to non-controlling interests
-14.3
-14.3
-0.1%
-26.1
-22.8
14.2%
Net income
41.9
55.0
-23.8%
129.3
172.3
-25.0%
- in % of sales
2.0%
2.6%
-0.6 pp
3.1%
4.0%
-0.9 pp
Earnings per share (€)
0.28
0.37
-23.8%
0.86
1.15
-25.0%
Earnings per share (€) - diluted
0.28
0.37
-23.8%
0.86
1.15
-25.0%
Weighted average shares outstanding (million shares)
149.79
149.80
0.0%
Weighted average shares outstanding - diluted (million shares)
149.83
149.81
0.0%
Second Quarter
First Half-Year
Income Statement
16
Statement of Comprehensive Income
1-6/2024
1-6/2023
€ million
€ million
Consolidated net income of the year before attribution
155.3
195.1
Currency translation differences
57.1
-15.4
Net gain/ loss on cash flow hedges, net after tax
42.2
-15.9
Net gain/ loss from reserve for hedging costs - options, net after taxes
3.9
Net gain/ loss from reserve for hedging costs - forward transactions, net after taxes
-10.9
Items expected to be reclassified to the income statement in the future
92.3
-31.3
Remeasurements of the net defined benefit liability, net after tax
-0.3
1.6
Neutral effects financial assets through other comprehensive income (FVTOCI), net after tax
-0.6
3.6
Items not expected to be reclassified to the income statement in the future
-1.0
5.2
Other comprehensive income
91.3
-26.1
Comprehensive income
246.6
169.1
attributable to:
Non-controlling interests
27.0
21.6
Shareholders of PUMA SE
219.7
147.5
17
1-6/2024
1-6/2023
€ million
€ million
Earnings before taxes (EBT)
206.7
260.1
Financial result and non-cash effected expenses and income
181.4
231.3
Gross cash flow
388.1
491.4
Change in current assets, net
-420.2
-603.9
Payments for taxes on income
-67.4
-96.6
Net cash used in operating activities
-99.5
-209.0
Payments for investing in fixed assets
-125.4
-158.0
Other investing and divestment activities incl. interest received
20.5
25.6
Net cash used in investing activities
-104.9
-132.4
Free cash flow
-204.4
-341.4
Free cash flow (before acquisitions)
-204.4
-341.4
Dividends paid to shareholders of PUMA SE
-122.8
-122.8
Dividends paid to non-controlling interests
-27.0
-23.4
Proceeds from borrowings
374.0
460.9
Cash repayments of borrowings
-125.0
0.0
Repayments of lease liabilities
-110.7
-98.8
Repurchase of treasury shares
-26.5
0.0
Payments of interest
-63.8
-38.7
Net cash used in/ from financing activities
-101.9
177.3
Exchange rate-related changes in cash and cash equivalents
25.1
8.9
Changes in cash and cash equivalents
-281.1
-155.2
Cash and cash equivalents at the beginning of the financial year
552.9
463.1
Cash and cash equivalents at the end of the reporting period
271.8
307.9
Cash Flow Statement
18
Statement of
Subscribed
Capital
Treasury
Share-
Non-
Total
Changes in Equity
capital
reserve
Revenue
Difference
Cash flow
Reserve for
Reserve for
stock
holders'
controlling
Equity
reserves
from
hedges
hedging
hedging costs
equity
interests
incl. retained
currency
costs
- forward
€ million
earnings
conversion
- options
transactions
1 January 2023
150.8
90.8
2,496.2
-256.8
14.2
0.0
0.0
-23.5
2,471.7
67.1
2,538.8
Consolidated net income of the year
0.0
0.0
172.3
0.0
0.0
0.0
172.3
22.8
195.1
Other comprehensive income
0.0
0.0
5.2
-14.2
-15.9
0.0
-24.9
-1.2
-26.1
Comprehensive income
0.0
0.0
177.5
-14.2
-15.9
0.0
147.5
21.6
169.1
Dividends paid to shareholders of
PUMA SE / non-controlling interests
-122.8
-122.8
-23.4
-146.2
Share-based payment and Utilization
/Issue of treasury stock
0.3
0.2
0.4
0.4
30 June 2023
150.8
91.0
2,551.0
-270.9
-1.7
0.0
0.0
-23.3
2,496.8
65.3
2,562.2
31 December 2023
150.8
93.8
2,677.0
-342.7
-3.9
0.0
0.0
-21.6
2,553.4
28.9
2,582.3
Effect of transition to IFRS 9 (hedge
accounting), net after tax
-4.9
-1.3
6.2
0.0
0.0
1 January 2024
150.8
93.8
2,672.1
-342.7
-3.9
-1.3
6.2
-21.6
2,553.4
28.9
2,582.3
Consolidated net income of the year
0.0
0.0
129.3
0.0
0.0
0.0
129.3
26.1
155.3
Other comprehensive income
0.0
0.0
-1.0
56.1
42.2
3.9
-10.9
0.0
90.4
0.9
91.3
Comprehensive income
0.0
0.0
128.3
56.1
42.2
3.9
-10.9
0.0
219.7
27.0
246.6
Gain and loss from hedging, that has
been reclassified to inventories
1.2
1.2
1.2
Dividends paid to shareholders of
PUMA SE / non-controlling interests
-122.8
-122.8
-27.0
-149.8
Share-based payment and Utilization
/Issue of treasury stock
2.9
1.9
4.8
4.8
Repurchase of treasury stock
-31.3
-31.3
-31.3
Changes in the scope of consolidation
-0.1
-0.1
-0.1
30 June 2024
150.8
96.7
2,677.7
-286.7
39.5
2.6
-4.7
-51.0
2,624.9
28.9
2,653.7
Other reserves
19
Operating Segments 1-6/2024
Regions
Sales
EBIT
Investments
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Europe
1,002.5
1,013.0
131.5
129.5
16.2
9.7
EEMEA*
791.0
868.1
166.2
207.7
11.5
12.6
North America
1,024.2
1,037.4
117.5
124.3
28.4
47.1
Latin America
628.2
625.9
122.5
142.7
30.3
44.8
Greater China
314.5
305.1
61.2
52.0
3.5
2.6
Asia/ Pacific (without Greater China)*
201.8
215.6
27.9
32.0
2.3
2.7
stichd
244.7
237.1
34.4
46.0
10.8
6.0
Operating segments in total
4,206.9
4,302.2
661.2
734.1
103.0
125.5
Depreciation and Amortisation
Inventories
Trade Receivables
(3rd party)
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Europe
33.5
30.4
543.8
613.6
275.9
284.1
EEMEA*
31.4
30.8
426.2
410.6
346.6
325.9
North America
42.1
42.0
438.8
611.9
275.9
279.5
Latin America
24.5
15.6
379.5
364.4
277.6
272.2
Greater China
14.8
15.4
112.1
116.2
54.1
40.7
Asia/ Pacific (without Greater China)*
11.0
11.5
64.8
82.2
65.9
68.0
stichd
7.0
5.1
127.9
102.8
95.1
73.4
Operating segments in total
164.2
150.7
2,093.3
2,301.6
1,391.2
1,343.7
Non-current Assets
1-6/2024
1-6/2023
€ million
€ million
Europe
494.9
470.8
EEMEA*
217.3
198.0
North America
776.6
769.3
Latin America
264.0
179.1
Greater China
87.6
84.1
Asia/ Pacific (without Greater China)*
83.7
97.7
stichd
230.3
210.6
Operating segments in total
2,154.4
2,009.7
* Prior year amounts were adjusted due to changes of the structure of the regions EEMEA and Asia/ Pacific (without Greater China)
20
Product
Sales
Gross Profit Margin
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
Footwear
2,278.4
2,336.4
46.2%
44.2%
Apparel
1,313.7
1,311.0
48.2%
47.7%
Accessories
627.5
660.9
48.5%
46.6%
Total
4,219.6
4,308.3
47.2%
45.7%
Reconciliations
Sales
1-6/2024
1-6/2023
€ million
€ million
Operating segments in total
4,206.9
4,302.2
Central Units
12.7
6.2
Total
4,219.6
4,308.3
EBIT
1-6/2024
1-6/2023
€ million
€ million
Operating segments in total
661.2
734.1
Central Units
-146.9
-193.3
Central marketing expenses
-238.0
-249.9
Consolidation
0.0
0.0
EBIT
276.2
290.9
Financial Result
-69.4
-30.8
EBT
206.7
260.1
Investments
Depreciation and Amortisation
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
Operating segments in total
103.0
125.5
164.2
150.7
Central Units
13.2
22.4
19.9
19.3
Consolidation
0.0
0.0
0.0
0.0
Total
116.1
147.9
184.2
170.1
Inventories
Trade Receivables
(3rd party)
Non-current Assets
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Operating segments in total
2,093.3
2,301.6
1,391.2
1,343.7
2,154.4
2,009.7
Not allocated to the operating segments
-132.2
-155.7
3.6
4.7
200.8
217.8
Total
1,961.1
2,145.9
1,394.7
1,348.4
2,355.2
2,227.5
21
Explanatory Notes to the Condensed Interim Consolidated Financial Statements (IFRS) as of 30 June 2024
GENERAL REMARKS
Under the “PUMA” brand name, PUMA SE and its
subsidiaries (the “PUMA group”) are engaged in the
development and sales of a broad range of sport and
sportlifestyle products including footwear, apparel
and accessories. The company’s registered head
office is in Herzogenaurach, Federal Republic of
Germany; its responsible court of registration is at
Fürth (Bavaria).
ACCOUNTING STANDARDS
The unaudited financial report of PUMA SE and its
subsidiaries (which together form the PUMA group)
was prepared according to IAS 34 “Interim Financial
Reporting” and should be read in connection with
the consolidated financial statements as of 31
December 2023. The information contained in the
consolidated financial statements as of 31 December
2023, apply to the financial reports for 2024, unless
changes have been explicitly referred to.
In preparing the half-year financial report, the
accounting policies applied and explained for the
consolidated financial statements as of 31 December
2023 were applied consistently with the following
exception.
PUMA is applying the provisions of IFRS 9 for phase
3 hedge accounting for the first time as of 1 January
2024. Previously, the option of continuing to apply
IAS 39 for hedge accounting was exercised. For
reasons of materiality, PUMA does not resatate
comparative information for previous periods.
Consequently, an adjustment was made to the
opening balance sheet as of 1 January 2024. For
existing cash flow hedge relationships, the hedging
cost approach was applied retrospectively on a
mandatory basis for options held as at the opening
date and voluntarily for the components of forward
exchange contracts excluded from the designation.
This resulted in a correction of the opening balance
sheet in a high single-digit million euro amount,
whereby the amount was withdrawn from retained
earnings and allocated to other comprehensive
income.
As under IAS 39, the PUMA Group now also
generally designates the spot component of
currency forwards and the intrinsic value of currency
and interest rate options in a hedging relationship
under IFRS 9. The effective cumulative changes in
fair value resulting from the spot component or the
intrinsic value are initially recognised directly in
equity in the cash flow hedge reserve in other
comprehensive income.
When accounting for currency hedges as cash flow
hedges, the fair values of the option contracts as
well as the forward components and the currency
basis spreads of the forward exchange contracts are
excluded from designation in a hedging relationship.
For these components excluded from designation,
the hedging cost approach is applied mandatorily for
options and voluntarily for currency forwards.
When accounting for interest rate hedges as cash
flow hedges, the fair values of the option
transactions are excluded from designation in a
hedging relationship. The hedging cost approach is
mandatory for these components excluded from
designation.
The effective cumulative changes in market value of
the non-designated components are recognised as
hedging costs in other comprehensive income as a
separate item.
In general, the changes in market value of the
components designated in hedging relationships for
foreign currency hedges accumulated in other
comprehensive
income
are
included
in
the
acquisition costs when hedged non-financial assets
are initially recognised or, in other cases, are
reclassified to sales in the same period as the
22
hedged item affects profit or loss. The adjustment
of non-financial assets affects profit or loss in the
same way and in the same periods as the affected
non-financial items affect profit or loss. A
corresponding disclosure is made both in the
statement of comprehensive income and in the
statement of changes in equity. In the case of
interest rate hedges, the changes in market value
accumulated in accumulated other equity are
reclassified to interest expense. The components
excluded from the designation are reclassified from
other comprehensive income to the financial result.
In the unusual case for the PUMA Group that
derivative financial instruments are not designated
as hedging instruments, they continue to be
classified and measured at fair value through profit
or loss.
This financial report is partly based on assumptions
and estimates which have an impact on the amounts
and on the breakdown of the reported assets and
liabilities as well as of the revenues and expenses.
The actual values may, in some exceptional cases,
differ from these assumptions and estimates at a
later date. The corresponding changes if and when
they occur will be considered as soon as the findings
are revised. The main uncertainties of estimates and
discretionary decisions are described in the
consolidated financial statements as of 31 December
2023.
In this regard, in line with our sales strategy, the
assumptions relating to the allocation of planned
cash inflows in the measurement of right-of-use
assets for retail stores were adjusted in the first half
of 2024 based on better experience. In the first half
of 2024, this led to the reversal of an impairment
loss recognised in the past and last adjusted as of
31 December 2023 in a very low 2-digit million euro
amount. The reversal was recognised in other
operating income and expenses.
SEASONAL VARIANCE
The Group's sales are seasonal and result in varying
sales and resulting profits throughout the year. Sales
and resulting profits tend to be highest in the first
and third quarters of the financial year and inventory
levels tend to be lowest. This is respectively due to
the start of the spring/summer and autumn/winter
collections.
MANAGEMENT SYSTEM
Changes in sales are also influenced by currency
exchange effects. This is why we also state any
changes in sales in euros, the reporting currency,
adjusted for currency exchange effects in order to
provide information that is relevant to the decision-
making process when assessing the revenue
position. Currency-adjusted sales are used for
comparison purposes and are based on the values
that would arise if the foreign currencies included in
the consolidated financial statements were not
converted at the average rates for the previous year,
but were instead translated at the corresponding
average rates for the current year. In the case of
countries
that
are
in
a
hyperinflationary
environment, the previous year's amounts are not
converted at the reporting date rates of the previous
year, but at those of the current reporting year. As
a result, currency-adjusted figures are not to be
regarded as a substitute or as superior financial
indicators, but should instead always be regarded as
additional information.
23
We use the indicator working capital in order to
assess the financial position. Working capital is
essentially the difference between current assets -
including in particular inventories and trade
receivables - and current liabilities. Cash and cash
equivalents, lease receivables, the positive and
negative market values of derivative financial
instruments and current finance and lease liabilities
are not included in working capital.
Net current assets include working capital line
items plus current assets and liabilities, which are
not part of the working capital calculation. Current
lease liabilities are not part of the net current assets.
NOTES TO THE INCOME STATEMENT
The breakdown of the Group's revenues by
distribution channel is as follows:
2024
€ million
2023
€ million
Wholesale
3,137.7
3,327.4
Direct to Consumer-business (Retail)
1,081.9
980.9
Total
4,219.6
4,308.3
EARNINGS PER SHARE
Earnings per share are calculated in accordance with
IAS 33 by dividing the result for the reporting period
by the average number of shares outstanding. The
average number of shares outstanding also includes
vested shares not yet issued. Shares held in treasury
stock reduce both the number of shares outstanding
and the diluted number of shares. Outstanding stock
options from the management incentive programme
can generally lead to a dilution of earnings per
share.
2024
2023
Earnings per share
€ 0.86
€ 1.15
Diluted earnings per share
€ 0.86
€ 1.15
EMPLOYEES
The development of the number of employees on
the basis of full-time equivalents (FTE) is as follows:
2024
2023
Number of employees as of 1 January
18,681
18,071
Number of employees as of 30 June
18,420
17,590
Average number of employees
18,292
17,876
DIVIDEND
The Annual General Meeting on 22 May 2024
approved a dividend of € 0.82 per share for the 2023
financial year. The total amount of the distribution is
€ 122.8 million. The dividend was paid out to the
shareholders in the days following the Annual
General Meeting.
SHAREHOLDERS‘ EQUITY
Subscribed Capital
The subscribed capital amounts to € 150,824,640.00
on the balance sheet date in accordance with the
articles
of
association
and
is
divided
into
150,824,640 no-par value shares with voting rights.
This corresponds to a proportionate amount of
€ 1.00 per share.
Treasury Stock
The resolution adopted by the Annual General
Meeting on 7 May 2020 (adjusted on 5 May 2021)
authorised the company to purchase until 6 May
2025 its own shares to a value of up to ten percent
of the share capital.
Based on the aforementioned authorisation, the
Management Board of PUMA SE approved a share
buyback programme on 29 February 2024. The first
tranche provides for the buyback of treasury shares
with a total purchase price of up to € 100 million and
begins in March 2024 for the period until 6 May
2025.
24
By resolution of the Annual General Meeting on 22
May 2024, the existing authorisation was revoked
and the company was again authorised to acquire
treasury shares of up to ten percent of the share
capital until 21 May 2029.
In the period from March 2024 up to and including
30 June 2024, PUMA SE acquired 700,413 shares in
the first tranche at a total price of € 31,291,030.36
(excluding acquisition costs) and an average
purchase price of approximately € 44.68 per share.
This corresponded to 0.46% of the subscribed
capital.
The company may use the repurchased shares for
all purposes of the authorisation granted. However,
PUMA SE intends to cancel the repurchased shares
in the fourth quarter of 2024.
Further information on the repurchase of treasury
shares can be found in the following table.
Repurchase of Treasury Shares in the
First Half of 2024
Month
Number of shares
Total price in €
Average purchase
price per share
in €
Share of
subscribed capital
in €
Share of
subscribed capital
in %
March
105,713
4,310,868.52
40.78
105,713
0.07%
April
88,714
3,706,587.20
41.78
88,714
0.06%
May
85,933
4,120,879.78
47.95
85,933
0.06%
June
420,053
19,152,694.86
45.60
420,053
0.28%
First half of 2024
in total
700,413
31,291,030.36
44.68
700,413
0.46%
25
At the end of the second quarter, the company held
a total of 1,596,001 PUMA shares in treasury, which
corresponds to 1.06% of the subscribed capital.
Development Number of Shares
2024
2023
Number of shares as of
1 January and as of 30 June
150,824,640 150,824,640
Thereof treasury shares
-1,596,001
-1,057,505
Shares outstanding as of
30 June
149,228,639 149,767,135
Weighted average number
of shares, outstanding
149,786,266 149,801,086
Diluted number of weighted
average shares, outstanding
149,829,651
149,814,188
FINANCIAL INSTRUMENTS
The valuation methods of the fair values according
to levels 1 to 3 are unchanged and can be found in
the consolidated financial statements as of 31
December 2023.
Financial instruments that are measured at fair value
in the balance sheet were determined using the
following hierarchy:
Level 1: Use of prices quoted on active markets for
identical assets or liabilities.
Level 2: Use of input factors that do not involve the
quoted prices stated under Level 1, but can be
observed for the asset or liability either directly (i.e.,
as price) or indirectly (i.e., derivation of prices).
Level 3: Use of factors for the valuation of the asset
or liability that are based on non-observable market
data.
The fair value of the investments held for strategic
reasons only refers to equity instruments of the
category “fair value through OCI” (FVOCI) and is
determined on the basis of level 1. The market
values of derivative assets or liabilities were
determined on the basis of level 2.
26
Measurement
Carrying
amount
Fair Value
Carrying
amount
Fair Value
categories
2024
2024
Level 1
Level 2
Level 3
2023
2023
Level 1
Level 2
Level 3
under IFRS 9
€ million
€ million
€ million
€ million
Assets
Cash and cash equivalents
1)AC
271.8
307.9
Trade receivables
AC
1,394.7
1,348.4
Other current financial assets
Derivatives - hedge accounting
n.a.
58.2
58.2
58.2
39.6
39.6
39.6
Derivatives - no hedge accounting
2)FVPL
25.9
25.9
25.9
21.7
21.7
21.7
Lease receivables
n.a.
15.9
4.3
Remaining current financial assets
AC
54.1
26.7
Other non-current financial assets
Derivatives - hedge accounting
n.a.
5.7
5.7
5.7
3.4
3.4
3.4
Investments
3) FVOCI
20.6
20.6
20.6
25.4
25.4
25.4
Lease receivables
n.a.
24.0
13.8
Remaining non-current financial assets
AC
31.0
34.4
Liabilities
Current borrowings
Bank liabilities
AC
396.6
175.6
Promissory note loans
AC
70.0
68.5
68.5
185.0
183.4
183.4
Trade payables
AC
1,647.9
1,457.3
Current lease liabilities
n.a.
213.0
197.1
Other current financial liabilities
Derivatives - hedge accounting
n.a.
10.6
10.6
10.6
45.7
45.7
45.7
Derivatives - no hedge accounting
2)FVPL
5.2
5.2
5.2
27.6
27.6
27.6
Remaining current financial liabilities
AC
28.7
35.1
Non-current borrowings (promissory note loan)
AC
357.8
357.2
357.2
427.6
419.8
419.8
Non-current lease liabilities
n.a.
982.2
997.3
Other non-current financial liabilities
Derivatives - hedge accounting
n.a.
1.3
1.3
1.3
1.5
1.5
1.5
Remaining non-current financial liabilities
AC
2.2
0.2
Total financial assets at amortised cost
1,751.6
1,717.3
Total financial liabilities at amortised cost
2,503.2
2,280.6
Total financial assets at fair value through profit or loss
25.9
21.7
Total financial liabilities at fair value through profit or loss
5.2
27.6
Total financial assets at FVOCI
20.6
25.4
1) AC = at amortised cost
2) FVPL = fair value through PL
3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income
27
SEGMENT REPORTING
Segment reporting is based on geographical areas
of responsibility in accordance with the PUMA
internal reporting structure, with the exception of
stichd. The geographical area of responsibility
corresponds to the business segment. Sales, the
operating
result
(EBIT)
and
other
segment
information are allocated to the corresponding
geographical areas of responsibility according to the
registered office of the respective Group company.
The internal management reporting includes the
following reporting segments: Europe, EEMEA
(Eastern Europe, Middle East, Africa, India, South
East Asia, Australia and New Zealand), North
America, Latin America, Greater China, Rest of
Asia/Pacific (excluding Greater China, South East
Asia, Australia and New Zealand) and stichd. These
are reported as reportable business segments in
accordance with the criteria of IFRS 8.
The reconciliation includes information on assets,
liabilities, expenses and income in connection with
centralised functions that do not meet the definition
of business segments in IFRS 8. Central expenses
and income include in particular central sourcing
(incl. hedging), central treasury, central marketing,
impairment losses on non-current assets and other
global functions of the Company headquarters.
The Company’s main decision-maker is defined as
the entire Management Board of PUMA SE.
With the exception of stichd’s sales of products
amounting to € 30.2 million (last year: € 20.7
million), there are no significant internal sales
between the business segments, which are
therefore not included in the presentation.
The operating result (EBIT) of the business
segments is defined as gross profit less the
attributable other operating expenses plus royalty
and commission income and other operating
income, but not considering the costs of the central
departments and the central marketing expenses.
Since PUMA is only active in one business field, the
sporting goods industry, products are additionally
allocated according to the footwear, apparel and
accessories product divisions in accordance with the
internal reporting structure.
EVENTS AFTER THE BALANCE SHEET DATE
There were no events after the balance sheet date
which may have a material effect on the financial
situation and earnings position as of 30 June 2024.
Responsibility Statement
“To the best of our knowledge, and in accordance
with the applicable reporting principles for interim
financial reporting, the interim consolidated financial
statements give a true and fair view of the assets,
liabilities, financial position and profit or loss of the
group, and the interim management report of the
group includes a fair review of the development and
performance of the business and the position of the
group, together with a description of the principal
opportunities and risks associated with the expected
development of the group for the remaining months
of the financial year.”
Herzogenaurach, 7 August 2024
The Management Board of PUMA SE
28
Management Board
Arne Freundt
(CEO, Chief Executive Officer)
Anne-Laure Descours
(CSO, Chief Sourcing Officer)
Maria Valdes
(CPO, Chief Product Officer)
Hubert Hinterseher
(CFO, Chief Financial Officer)
Supervisory Board
Héloïse Temple-Boyer
(Chair)
Jean-Marc Duplaix
(Deputy Chairman)
Fiona May
Harsh Saini (since 22 May 2024)
Roland Krüger (since 22 May 2024)
Thore Ohlsson (until 22 May 2024)
(Deputy Chairman)
Martin Koeppel
(Employees‘ Representative)
Bernd Illig
(Employees‘ Representative)
29
Financial Calendar FY 2024
27 February 2024
Financial Results FY 2023
8 May 2024
Quarterly Statement Q1 2024
22 May 2024
Annual General Meeting
7 August 2024
Half-Year Financial Report 2024
6 November 2024
Quarterly Statement Q3 2024
The financial releases and other financial information are available on the
Internet at „about.puma.com“.
Published by
PUMA SE
PUMA Way 1
D-91074 Herzogenaurach
Tel.:
+49 (0)9132 81-0
email:
investor-relations@puma.com
Internet:
http://www.puma.com
Notes relating to forward-looking statements:
This document contains statements about the future business development and strategic direction of the Company. The forward-looking statements are based on management's current
expectations 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
combined 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
developments. We therefore assume no liability for the accuracy of these forecasts.
PUMA
PUMA 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
by 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
collaborates 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
more than 120 countries, employs about 21,000 people worldwide and is headquartered in Herzogenaurach/Germany.
For more information, please visit https://about.puma.com.Plain-text mathematical notation (without MathML)
PLAY
FASTER.
FOREVER
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Annual Report 2023
RIHANNA
TABLE OF CONTENTS
4
5
8
15
30
31
34
35
36
42
48
49
TO OUR SHAREHOLDERS
CEO-Letter
Report by the Supervisory Board
OUR PEOPLE
SUSTAINABILITY
Foreword Anne-Laure Descours, CSO Awards
and Recognitions
PUMA’s FOREVER.BETTER. Sustainability Strategy
Sustainability Organisation and Governance
Structure
Most Material Aspects
Scope of the Report
Due Diligence and Risk Assessment Human
Rights
53
Fair Income
79
Health and Safety
89
Environment
94
Climate
104
Chemicals
133
Water and Air
142
Plastics and the Oceans
153
Circularity
156
Products
165
Biodiversity
177
Environmental Key Performance Data
184
Reporting in accordance with the
EU Taxonomy Regulation
188
,QGH[IRUFRPELQHGQRQ-кQDQFLDORHSRUWDQG
GRI content
198
KPMG Assurance Statement
205
PUMA Annual Report 2023
Table of Contents
2
MONDO DUPLANTIS
COMBINED MANAGEMENT
REPORT OF PUMA SE FOR
THE FINANCIAL YEAR 2023
208
Overview 2023
210
PUMA Group essential information
214
Commercial activities and organisational structure 214
Targets and strategy
215
Product development and design
217
Sourcing
220
Employees
222
Management system
225
,QIRUPDWLRQUHJDUGLQJWKHQRQ-кQDQFLDOUHSRUW
Economic report
228
General economic conditions
228
Sales development
229
Results of operations
233
Development of the segments
237
Dividends
238
1HWDVVHWVDQGкQDQFLDOSRVLWLRQ
&DVKлRZ
Statement regarding the business development
and the overall situation of the Group
245
Comments on the Financial Statements of
PUMA SE in accordance with the German
Commercial Code (HGB)
247
Information concerning takeovers
251
Corporate governance statement in accordance
with section 289f and 315d HGB
254
Risk and Opportunity Report
255
Outlook report
272
CONSOLIDATED FINANCIAL
STATEMENTS
274
Consolidated Statement of Financial Position
275
Consolidated Income Statement
277
Consolidated Statement of Comprehensive Income 278
279
Consolidated Statement of Cash Flows
Statement of Changes in Equity
281
Notes to the Consolidated Financial Statements
282
Notes to the Consolidated Statement of
Financial Position
302
Notes to the Consolidated Income Statement
351
Additional information
357
Declaration by the Legal Representatives
372
Independent Auditor‘s Report
373
ADDITIONAL INFORMATION
382
The PUMA Share
383
PUMA Year-on-Year Comparison
385
PUMA Group Development
387
Imprint
390
PUMA Annual Report 2023
3
Table of Contents
LAMELO BALL
TO OUR SHAREHOLDERS
5
CEO-Letter
Report by the Supervisory Board
8
PUMA Annual Report 2023
To our Shareholders
4
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
5
CEO-LETTER
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PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
Ң
REPORT BY THE SUPERVISORY BOARD
DEAR SHAREHOLDERS,
In a transition year for our industry, characterized by a challenging market environment, geopolitical con-
flict, macroeconomic headwinds and currency volatility, the PUMA Group sustained its strong momentum,
gained market shares and delivered a profitability fully in line with its outlook.
$UQHFUHXQGWZKRWRRNRYHUDV&KLHIE[HFXWLYHOIILFHULQODWHҜҚҜҜWRJHWKHUZLWK0DULDVDOGHVDV&KLHI
Product Officer, Anne-Laure Descours as Chief Sourcing Officer and Hubert Hinterseher as Chief Financial
Officer, started to build a foundation for the future growth of the company with the strategic priorities of ele-
vating the brand, increasing product excellence, and improving the distribution quality. Within that strategic
framework, PUMA put a special focus on the important US and China markets. As the Supervisory Board,
we are convinced that these are the right priorities to ensure not only sustainable but also more profitable
JURZWK.TKHSURJUHVVWKDWZDVPDGHLQҜҚҜҝPDGHXVFRQILGHQWWKDWWKH380$0DQDJHPHQWWHDPLVRQWKH
right track. We are particularly pleased to see that the Management Board acts as a team and that this team
spirit not only motivates employees but is also recognized and appreciated by external stakeholders. We are
also proud of the progress PUMA has made on its sustainability journey. Making our supply chains fair and
sustainable has always been a matter close to PUMA's heart and we want to remain one of the leading
brands in the industry. The topic will also have a strong influence on the work of the Supervisory Board in
the future, which is why we are striving for further professionalization in this area.
Another focus of the Supervisory Board's work was resolving the unfavourable YRWLQJUHVXOWVDWWKHҜҚҜҝ$Q-
nual General Meeting and deriving follow-XSPHDVXUHV.FRUҜҚҜҞWKH6XSHUYLVRU\BRDUGVHWLWVHOIWKHJRDO
of further professionalizing its own work and strengthening the diversity concept of the Supervisory Board.
Especially, increasing independence at the Supervisory Board is our top priority going forward. The Supervi-
sory Board decided to actively engage with some of the Company’s largest investors and conduct a Govern-
ance Roadshow for the first time. In these conversations, I received valuable feedback which will shape the
↗ HÉLOÏSE TEMPLE-BOYER
CHAIR OF THE
SUPERVISORY BOARD
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
ң
ZRUNRIWKH6XSHUYLVRU\BRDUGLQҜҚҜҞ.FRUH[DPSOHZHZLOOSURSRVHWRWKH$QQXDO*HQHUDO0HHWLQJLQҜҚҜҞ
that the number of Supervisory Board members will be increased from the current six to seven. After Thore
Ohlsson has handed over the chair of the Audit Committee to Jean-Marc Duplaix and ensured a smooth
WUDQVLWLRQKHZLOOUHVLJQIURP380$ΝV6XSHUYLVRU\BRDUGHIIHFWLYH0D\ҜҜҜҚҜҞWKHGD\RI380$ΝV$QQXDO
General Meeting. Jean-Marc Duplaix is considered independent by the Supervisory Board because his func-
WLRQDV'HSXW\&EORI.HULQJ6.$.GRHVQRWLPSDLUKLVLQGHSHQGHQFHDV.HULQJ6.$.KROGVRQO\қ.ҞҡRI
380$ΝVVKDUHFDSLWDODQG$UW«PLV6.$.6.KROGVҞҜ.ҜRI.HULQJΝVVKDUHFDSLWDODFFRUGLQJWR.HULQJΝVҜҚҜҝ
Annual Financial Report. Until Thore’s resignation becomes effective, he continues to contribute his exten-
sive knowledge and many years of experience as a member of the Audit Committee for the benefit of PUMA
with great commitment. As a consequence, there will be two new vacancies on the Supervisory Board that
need to be filled. To find the right candidates, the Supervisory Board has assigned the search to a leading
global executive search consulting company. The search will focus on profiles with expertise in the areas of
sustainability and retail and will comply with the required independence by investors. With this step, the Su-
pervisory Board aims to strengthen the structure of the Board, both in terms of skills and independence. A
particular effort will be made in the next years to ensure that the chair of the Personnel Committee, who is
in charge of remuneration topics, of the Nominating Committee and of the Audit Committee as well as the
majority of the members of those Committees, are independent.
At the last Annual General Meeting, the majority of our shareholders present voted against the proposed
remuneration report. We have taken these voting results on the remuneration report very seriously and I am
addressing them in the introduction to the remuneration report (see https://about.puma.com/en under In-
vestor Relations/Corporate Governance). Following the feedback that emerged during the engagement with
the investors regarding the remuneration system, we are taking steps to review the remuneration system in
WKHFRXUVHRIWKHҜҚҜҞILQDQFLDO\HDUDQGZLOOSUHVHQWDUHYLVHGUHPXQHUDWLRQV\VWHP WRWKHҜҚҜҟ$QQXDO
General Meeting for approval.
Although the current share price performance is not in line with our and your expectations, I am convinced
that it does neither reflect the actual value of our company nor the good operating performance. The Super-
visory Board and the Management Board anticipate that the current challenging market environment is
temporary and are confident that the long-term prospects of the company based on its strong brand, strong
product, strong partnerships and strong team will lead to a sustainable growth.
The Supervisory Board would like to thank PUMA’s Management Board, Leadership Team and the entire
380$FDPLO\IRUWKHLUGHGLFDWLRQFRPPLWPHQWDQGKDUGZRUNLQҜҚҜҝ.
SUPERVISORY BOARD MEETINGS
The meetings of the Supervisory Board and its committees generally take place in-person with the option of
participation via a video link. Meetings are held exclusively as video conferences in exceptional circum-
VWDQFHV.,QҜҚҜҝWKH6XSHUYLVRU\BRDUGFRQYHQHGWRIRXUUHJXODUPeetings. In these meetings, it advised the
Management Board on the management of the company and continuously supervised its conduct of busi-
ness. It discussed with the Management Board on the Company’s business policies, all relevant aspects of
corporate development and corporate planning, the Company’s economic situation, including its net assets,
financial position and results of operations, the adequacy of capital resources and all key decisions for the
Group. The Management Board informed the Supervisory Board regularly, comprehensively, and in a timely
manner in written and verbal form about the implementation of all decisions and about all major business
transactions. The members of the Management Board took part in meetings of the Supervisory Board and
its committees; the Supervisory Board also met regularly without the Management Board.
FXUWKHUPRUHLQҜҚҜҝRQHFRQVWLWXHQWPHHWLQJRIWKH6XSHUYLVRU\BRDUGWRRNSODFHDIWHUWKHHOHFWLRQRIWKH
new Supervisory Board by the Annual General Meeting. Several matters were decided via circular resolu-
tions using electronic means of communication. All members participated in drawing up the resolutions.
Whenever necessary, representatives of the shareholders and employees held separate preliminary discus-
sions prior to the meetings.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҚ
Plenary Supervisory Board
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Héloïse Temple-Boyer
5/5
100
Thore Ohlsson
5/5
100
Jean-François Palus
(until 24 May, 2023)
2/2
100
Jean-Marc Duplaix (since 24 May, 2023)
3/3
100
Fiona May
5/5
100
Martin Köppel
5/5
100
Bernd Illig
5/5
100
TKHDWWHQGDQFHRIWKHPHPEHUVRIWKH6XSHUYLVRU\BRDUGDWFRPPLWWHHPHHWLQJVZDVқҚҚIRUDOOPHPEHUV
as well.
The Supervisory Board discussed in detail all of the Company’s key business transactions, based on the re-
ports by the Management Board and the Committees, and presented its own ideas. The Management Board
provided the Supervisory Board with detailed information on any deviations of the business performance
from the budgeted figures, both in writing and orally. The Supervisory Board verified these explanations us-
ing the supporting documents, which were always submitted in appropriate time before the meetings. The
Supervisory Board was involved in all key decisions at an early stage. In addition, the Chair of the Supervi-
sory Board maintained, and continues to maintain, regular verbal or written contact with the CEO and keeps
herself informed of all major developments. Overall, these discussions did not give any indication that the
Management Board was managing the Group in anything other than a lawful and proper manner.
The Supervisory Board members took part, on their own initiative, in the educational and training measures
necessary for the performance of their duties. The Company supports the Supervisory Board members in
their training activities, for example by having the Legal Department regularly prepare changes in the legal
IUDPHZRUNIRUWKH6XSHUYLVRU\BRDUGDQGUHSRUWDERXWWKHPLQWKHPHHWLQJV.,QҜҚҜҝWKH6XSHUYLVRU\BRDUG
received an update on the German Supply Chain Akt (“Lieferkettensorgfaltspflichtengesetz”, LkSG) and the
Corporate Sustainability Reporting Directive (CSRD). There is an established onboarding process to familiar-
ize new Supervisory Board members with the PUMA business model, group structures and special topics.
MAIN ADVISORY FOCUS
,QWKHҜҚҜҝILQDQFLDO\HDUWKHPDLQIRFXVZDVRQWKHIROORZLQJLVVXHV UHYLHZDQGDSSURYDORIWKHҜҚҜҜFRQ-
VROLGDWHGDQGDQQXDOILQDQFLDOVWDWHPHQWVDQGWKHҜҚҜҜQRQ-financial report, dividend proposal, setting the
agenda for the Annual General Meeting on 0D\ҜҞҜҚҜҝUHDOL]DWLRQRISHUVRQQHODGMXVWPHQWVRQWKH0DQ-
DJHPHQWBRDUG LQSDUWLFXODUDSSRLQWPHQWRI0DULDVDOGHVDVPHPEHURIWKH0DQDJHPHQWBRDUG &KLHI
3URGXFWOIILFHU &3O IURP-DQXDU\қҜҚҜҝDQGH[WHQVLRQRIWKHFRQWUDFWRI+XEHUW+LQWHUVHKHUDs Chief
Financial Officer (CFO)), follow-up of the new strategy of the Management Board regarding elevating the
brand and growing the market share in the US and China, re-organization of the marketing organization,
current business and revenue development, markets and trends, financial position of the Group, corporate
DQGEXGJHWSODQQLQJҜҚҜҞDVZHOODVPHGLXP-term planning, including investments, further improvement of
the compliance management and the risk management and internal control system as well as material liti-
gation in the Group. In addition, the Supervisory Board regularly dealt with the development and implemen-
tation of sustainability topics.
As every year, the Personnel Committee and the Supervisory Board determined the degree of achievement
RIWKHWDUJHWVIRUWKHLQGLYLGXDO0DQDJHPHQWBRDUGPHPEHUVZLWKUHJDUGWRҜҚҜҜ.TKH6XSHUYLVRU\BRDUG
decided on the individual targets for the variable MDQDJHPHQWBRDUGUHPXQHUDWLRQIRUWKHҜҚҜҝILQDQFLDO
year upon recommendation of the Personnel Committee.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
ққ
CONFLICTS OF INTEREST
The members of the Supervisory Board are required to disclose to its Chair any conflicts of interest without
undue delay. In the past year, no such disclosures were made.
COMMITTEES
TKH6XSHUYLVRU\BRDUGKDVHVWDEOLVKHGIRXUFRPPLWWHHVWRSHUIRUPLWVGXWLHV the Personnel Committee,
the Audit Committee, the Nominating Committee and the Sustainability Committee. The Personnel Commit-
tee, the Audit Committee and the Sustainability Committee each comprise two shareholder representatives
and one employee representative. The Nominating Committee is composed only of shareholder representa-
tives. The composition of the committees can be found in the notes to the consolidated financial statements.
The Supervisory Board receives regular reports on their work.
PERSONNEL COMMITTEE
The Personnel Committee has the task of preparing the conclusion and amendment of employment con-
tracts with the members of the Management Board, reviewing the remuneration report and establishing
policies for human resources and personnel development. It mHWWRRQHUHJXODUPHHWLQJLQҜҚҜҝGHFLGHGRQ
WKHWDUJHWDFKLHYHPHQWIRUWKHLQGLYLGXDO0DQDJHPHQWBRDUGPHPEHUVDQGVHWWKHWDUJHWVIRUҜҚҜҝ.,QDGGL-
WLRQWKHDSSURYDORIWKH/T,SURJUDPVҜҚҜҝZHUHWKHIRFXVRIWKHGLVFXVVLRQV.&RUUHVSRQGLQJUHFRPPHQGD-
tions for resolutions were made to the Supervisory Board.
Personnel Committee
Attendance at meetings
Attendance in %
Héloïse Temple-Boyer (Chair)
1/1
100
Fiona May
1/1
100
Martin Köppel
1/1
100
AUDIT COMMITTEE
TKH$XGLW&RPPLWWHHKHOGIRXUUHJXODUPHHWLQJVLQWKHILQDQFLDO\HDUҜҚҜҝ.,QSDUWLFXODUWKH$XGLW&RPPLW-
tee is responsible for the review of the accounting, particularly comprising the consolidated financial state-
ments and the group management report, group half year report, interim financial information and the sin-
gle entity financial statements in accordance with the German Commercial Code (HGB). It is furthermore
responsible for monitoring the accounting process, the effectiveness of the internal control system, the risk
management system, the internal audit system, compliance and the statutory audit of the financial state-
ments, with particular regard to the process of selecting an auditor. The Audit Committee is also responsi-
ble for conducting the selection process of the auditor. In addition, the Audit Committee monitors the inde-
pendence of the auditor and ensures that the non-audit services of the auditor commissioned by the Man-
agement Board do not give rise to any grounds for disqualification or partiality or any threat to independ-
ence. The Audit Committee issues the audit mandate on behalf of the Supervisory Board to the auditor
elected by the general meeting, determines the audit areas of the audit, monitors the quality of the audit
and the services additionally provided by the auditor and agrees the fee with the auditor. Heads of the corpo-
rate functions were also available for reports and questions on individual agenda items at the committee
meetings. The Audit Committee meets regularly with the auditor, also without the Management Board.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҜ
Audit Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Thore Ohlsson
(Chair until 24 May, 2023)
4//4
100
Héloïse Temple-Boyer
(until 24 May, 2023)
2/2
100
Jean-Marc Duplaix
(since 24 May, 2023, Chair)
2/2
100
Bernd Illig
4/4
100
NOMINATING COMMITTEE
The Nominating Committee has the task of proposing suitable candidates to the Supervisory Board for its
election proposals to the Annual General Meeting. It held two meetings in the last financial year.
Nominating Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Héloïse Temple-Boyer (Chair)
2/2
100
Fiona May
2/2
100
Jean-François Palus
(until 24 May, 2023)
1/1
100
Jean-Marc Duplaix (since 24 May, 2023)
1/1
100
,QҜҚҜҞWKHPDLQIRFXVRIWKH1RPLQDWLQJ&RPPLWWHHVΝVZRUNZLOOOLHRQWKHVXFFHVVLRQSODQQLQJIRUTKRUH
Ohlsson and on finding the right candidate for the expansion of the Supervisory Board.
SUSTAINABILITY COMMITTEE
TKH6XVWDLQDELOLW\&RPPLWWHHPHWRQFHLQWKHҜҚҜҝILQDQFLDO\HDUWRGLVFXVVWKHFRPSDQ\
VVXVWDLQDELOLW\
strategies. The focus was emphasized on the evaluation of the "Conference of the People," sustainability-
related projects within the company and relevant, upcoming legislative projects. The Sustainability Commit-
tee consists of three members.
Sustainability Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Fiona May (Chair)
1/1
100
Héloïse Temple-Boyer
1/1
100
Martin Köppel
1/1
100
CORPORATE GOVERNANCE
$VLQSUHYLRXV\HDUVWKH6XSHUYLVRU\BRDUGDGGUHVVHGFXUUHQWGHYHORSPHQWVLQWKHILQDQFLDO\HDUҜҚҜҝUH-
JDUGLQJWKH*HUPDQ&RUSRUDWH*RYHUQDQFH&RGHLQWKHYHUVLRQGDWHG$SULOҜҢҜҚҜҜ HIIHFWLYHDVRIҜҡ-XQH
ҜҚҜҜ *&*& .TKH*&*&FRQWDLQVHVVHQWLDOVWDWutory regulations and recommendations for the manage-
ment and supervision of listed companies and standards for responsible corporate governance. The corpo-
rate governance standards have long been a part of the corporate routine.
3XUVXDQWWR3ULQFLSOHҜҝRIWKH*&*&WKH6XSHUYLVRU\BRDUGUHSRUWVRQFRUSRUDWHJRYHUQDQFHLQWKH&RUSR-
rate Governance Statement. The Company satisfies all requirements of the GCGC, to the extent required by
LW.TKH6WDWHPHQWRI&RPSOLDQFHRI1RYHPEHUңҜҚҜҝLVDYDLODEOHWRRXUVKDUHKROGHUVDWDQ\WLPHRQWKH
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҝ
Company’s website under https://about.PUMA.com/en/investor-relations/corporate-governance at
STATEMENT OF COMPLIANCE.
ANNUAL FINANCIAL STATEMENTS ADOPTED
The annual financial statements for PUMA SE prepared by the Management Board in accordance with the
German Commercial Code (Handelsgesetzbuch/HGB), the consolidated financial statements for PUMA
JURXSSUHSDUHGLQDFFRUGDQFHZLWK6HFWLRQҝқҟD+*BRQWKHEDVis of the International Financial Reporting
Standards (IFRS) and the combined management report for PUMA SE and the PUMA Group, each for the
ILQDQFLDO\HDUҜҚҜҝKDYHEHHQDXGLWHGE\WKHVWDWXWRU\DXGLWRUV.30*$*:LUWVFKDIWVSU¾IXQJVJHVHOOVFKDIW
NuremberJZKRZHUHDSSRLQWHGDWWKH$QQXDO*HQHUDO0HHWLQJRQ0D\ҜҞҜҚҜҝDQGFRPPLVVLRQHGE\WKH
Supervisory Board to audit the annual financial statements and the consolidated financial statements and
have been given an unqualified auditor’s opinion. The lead auditor on the KPMG team is Matthias Koeplin
DQGKHKDVEHHQDVVLJQHGWKHUROHVLQFHҜҚҜҜ.380$KDVQRWSDLGQRQ-audit related fees in excess of audit
related fees to its auditor.
In their report, the statutory auditors conclude that PUMA’s institutionalized risk management system, in
DFFRUGDQFHZLWK6HFWLRQңқ Ҝ RIWKH*HUPDQ6WRFN&RUSRUDWLRQ$FW $NWLHQJHVHW]$NW* LVFDSDEOHRIGH-
tecting at an early stage and countering any developments that might jeopardize the continuity of the Com-
pany as a going concern. The Supervisory Board has been updated by the Management Board regularly on
all relevant risks in this regard, in particular its assessments of market and procurement risks, financial
risks (including currency risks) and organizational risks.
The accounting records, the audit reports from the statutory auditors and the Management Board’s and Su-
pervisory Board’s recommendation on the appropriation of net profit were made available to all members of
the Supervisory Board in a timely manner. At thHPHHWLQJRIWKH$XGLW&RPPLWWHHRQFHEUXDU\ҜҠҜҚҜҞDQG
at the subsequent Supervisory Board meeting held on the same day, the statutory auditors reported on the
key results of their audit and discussed them in detail with the Management Board and the members of the
Supervisory Board. No discrepancies were detected.
The Supervisory Board reviewed in detail the annual financial statements, the combined management re-
port for PUMA SE and the PUMA Group, the Management Board’s and the Supervisory Board’s recommen-
dation on the appropriation of net profit and the consolidated financial statements and raised no objections.
In accordance with the recommendation of the Audit Committee, the Supervisory Board agreed with the re-
sults of the audit of both statements and approved the annual financial statements of PUMA SE and the con-
VROLGDWHGILQDQFLDOVWDWHPHQWVIRUWKHILQDQFLDO\HDUҜҚҜҝ.TKHҜҚҜҝDQQXDOILQDQFLDOVWDWHPHQWVKDYHWKXV
been adopted.
The Management Board and the Supervisory Board resolved to propose to the Annual General Meeting a
GLVWULEXWLRQRIDGLYLGHQGRIυҚ.ҢҜSHUGLYLGHQGHQWLWOHGVKDUHWRWKHVKDUHKROGHUVIRUWKHILQDQFLDO\HDU
ҜҚҜҝ.,QWKLVFRQWH[WWKHOLTXLGLW\VLWXDWLRQRI the Company, the financing and the effects on the capital mar-
ket were discussed. The payout is conditional to an overall sound macroeconomic environment. A total
DPRXQWRIDURXQGυқҜҜ.ңPLOOLRQZLOOEHSDLGRXWLQGLYLGHQGVIURP380$6EΝVUHWDLQHGHDUQLQgs. The re-
PDLQLQJUHWDLQHGHDUQLQJVRIDURXQGυҝҠҝ.ҠPLOOLRQZLOOEHFDUULHGIRUZDUG.
,QLWVPHHWLQJRQFHEUXDU\ҜҠҜҚҜҞWKH6XSHUYLVRU\BRDUGDOVRDSSURYHGWKHQRQ-financial report in accord-
DQFHZLWKiiҝқҟFLQFRQMXQFWLRQZLWKiiҜҢңFWRҜҢңHRIWKH*HUPDQ&RPPHUFLDO&RGH +*B .
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҞ
THANKS
We would like to express our gratitude and recognition to the Management Board, the management teams
at the Group companies, the Works Council and all our employees for their hard work and their outstanding
FRRSHUDWLRQLQҜҚҜҝ.:HORRNIRUZDUGWRҜҚҜҞD\ear of sports in which PUMA will launch its largest-ever
brand campaign and come to the market with an impressive portfolio of new and innovative products.
Herzogenaurach, ҜҠFHEUXDU\ҜҚҜҞ
On behalf of the Supervisory Board
Héloïse Temple-Boyer
Chair
PUMA Annual Report 2023
↗ Our People
15
OUR PEOPLE
PUMA Annual Report 2023
↗ Our People
16
OUR PEOPLE*
Our PUMA Family is the key to our success. Our people strategy is the foundation of PUMA’s unique work
environment and corporate culture, which helps us attract the world’s best talent and shapes the future
success of the company. Our people strategy is centred on three main pillars: People First, Sustainable
People Practices and Digitalisation.
People First means understanding employees' needs, values, and potential of our employees and putting
them at the centre of our decision making. That helps us create an inclusive culture that respects diversity,
promotes health and well-being, and encourages personal and professional growth.
Sustainable people practices create a workplace culture that prioritises employee health and happiness,
diversity, and inclusivity, and offers ample opportunities for career growth. Our sustainable people practices
are central to building a resilient organisation. By thinking ahead and equipping our employees with the
future skills and leadership qualities necessary, we ensure the long-term success of PUMA.
Digital tools in Human Resources improve work experience and help us stay competitive and agile in the
fast-changing business landscape. By using digital technology, we are improving efficiency, data-driven
decision-making, candidate and employee experiences. We deploy easy-to-use digital tools that enhance
collaboration and productivity and offer digital literacy programs to ensure all employees are equipped to
thrive in a digital environment.
Putting the human element first ensures that our pursuit of environmental and technological excellence is
responsible and rewarding. The result is a sustainable future where innovation and well-being go hand in hand.
PUMA LIFE CYCLE
RECRUITING/ONBOARDING
People are our most valuable asset. We adopt a data-driven approach to talent acquisition to ensure that
PUMA remains the employer of choice in the minds of external applicants. We analyse previous trends in
recruitment, identify the primary source of talent inflow, and tailor our talent acquisition approach accordingly.
To complement our goal, we employ digital platforms, social media, and the PUMA career website to
engage with talent around the world.
To ensure a continuous talent pipeline, we cultivate links with universities through career events, company
lectures and master classes. We also regularly participate in external professional events, panel
discussions, and seminars to build a solid talent network.
Over the past two years, we have fostered a deeper relationship with candidates by offering them the chance
to participate in unique PUMA digital events. These events allowed candidates to speak with top officials at
PUMA and offer suggestions on how to improve the brand.
Our onboarding process should not only provide the new starters with a great first day experience but also
guarantee that they will work effectively and feel a member of the PUMA family as soon as possible. This
effective onboarding serves as the foundation for a successful employee journey, aligning our new team
members with our culture, values, and mission. It ensures compliance, clarifies roles, and provides
essential support, enabling a seamless integration. This process not only fosters productivity and teamwork
but also enhances our employees' sense of belonging and growth within PUMA.
*
Contains also all information related to company culture.
PUMA Annual Report 2023
↗ Our People
17
LEARNING AND DEVELOPMENT
Talent management
We believe that each employee is in charge of their own personal development. At PUMA, we foster a culture
centred around feedback and results, coupled with a self-directed learning mindset through an integrated
talent management approach. At least annually, we evaluate of all our employees, assessing their
performance and potential. Personal development plans are crafted, and we identify the right individuals to
prepare them for shaping the future of PUMA.
Global talent conferences are held to assess the entire PUMA workforce, including all levels of
management. Criteria such as individual performance, competencies, potential, learning agility, ambition,
and mobility are used for evaluation. A targeted analysis of our employees' profiles allows us to align
internal talent with upcoming career opportunities. This helps us build a strong succession pipeline and
address future competency needs.
Our unwavering focus on internal talent mobility provides our employees with opportunities for professional
growth and cross-cultural experience, resulting in an enhanced learning curve on both professional and
personal levels. Utilizing digital platforms, such as Workday's “Job Alert” and “Talent Marketplace” feature,
our internal talents can easily find job opportunities.
For instance, in 2023, a substantial number of internal moves, including relocations abroad, were reported.
Overall, we successfully filled three out of four vacant key positions worldwide through internal promotions
or horizontal transfers, with 60% of open positions filled by internal candidates. This accomplishment
confirms the effectiveness of our talent and development strategy.
Our overarching goal is to minimize voluntary turnover and maintain a permanent employment rate of over
80% for our workforce. In 2023, 92% of our employees worldwide held permanent employment contracts,
and over 31% were governed by collective agreements. The turnover rate is intricately linked to the share of
retail business in respective markets and regions, with the employee-induced turnover rate standing at 24%
(7% for non-retail employees and 39% for retail employees). The overall turnover rate, including retail
employees, was 32% shows a decrease of 3% compared to last year. At the end of 2023, 22% of our
employees were working part-time.
↗ T.01 EMPLOYMENT CONTRACTS (PERMANENT/FIXED TERM)
Permanent
Fixed term
Region
Total
Total
Female
Male
Diverse
Total
Female
Male
Diverse
Europe
4,982
4,259
2,206
2,051
2
723
419
304
0
EEMEA
3,876
3,775
1,391
2,384
0
101
40
61
0
North America
3,788
3,203
1,640
1,552
11
585
266
318
1
Latin America
3,775
3,773
1,666
2,106
1
2
0
2
0
Asia/Pacific
4,743
4,359
2,667
1,688
4
384
215
168
1
Total
21,164
19,369
9,570
9,781
18
1,795
940
853
2
PUMA Annual Report 2023
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18
↗ T.02 EMPLOYMENT CONTRACTS (PERMANENT/FIXED TERM) (IN %)
Employment contracts
Female
Male
Diverse
Total
Full-time
47
53
0
100
Part-time
58
42
0.2
100
Development
Our employees’ ongoing professional and personal development ensures they have the necessary skills to
support internal growth and drive the company forward.
Strategic workforce planning and the use of Workday help us to identify skill gaps and determine the
capabilities of our employees. We provide a wide choice of training and development options, including
courses, workshops, and coaching – both online and offline, standardised or tailored to specific needs. We
offer a cutting-edge learning environment for both internal and external training classes, built into the
Workday Human Capital Management system. This is based on the idea of lifelong learning, which fosters a
self-driven learning culture.
In 2023, 18,527 employees worldwide attended 160,481 hours of training and workshops. This averaged 9
hours and € 226 per FTE for training activities. Compared to 2023, the average number of training hours per
FTE increased by 2 hours. We achieved this by a proactive learner engagement strategy, including fun
activations on various topics, a gamified approach, and internal learning competitions. The most engaged
learners worldwide were rewarded quarterly with the “Top Learner Award”. Based on this strategy, PUMA
was nominated for an “eLearning Journal” Award 2024 in the “Learner Engagement” category.
LinkedIn Learning and GoodHabitz offer more than 23,000 online training courses in up to 13 languages for
personal and professional growth. Additionally, PUMA employees actively generate product-specific
learning content.
Employees around the globe can access the language learning platform on any device. Speaking a second
language helps people understand each other, makes connections, and increases diversity. It also enhances
our internal mobility. While the global focus is on English, people can acquire or perfect any other language
for business or travel.
Our entire staff, including retail employees, can now learn a new language online, at their own pace and in a
way that fits their needs. By offering weekly language training in an office classroom, PUMA helps
employees integrate locally faster by eliminating the need to drive to external courses after work.
To support our global workforce during challenging times, we focused on mental health, resilience,
mindfulness, and emotional stability in 2023. All our current classroom training is based on hybrid concepts
to ensure that our employees can learn in the way that is best for them.
We continue to provide our digital agile coach programme to workers globally to establish an agile learning
organisation and increase agile working practises. Since its launch, approximately 190 employees around
the globe have completed the programme by 2023. We focus on need-based training at three levels – Agile
Rookie, Agile Facilitator, and Agile Coach – to equip the right people with the right skills. Various business
units are actively using agile ideas and frameworks such as Scrum, Kanban, Design Thinking, and OKRs, in
their daily operations and strategic planning.
PUMA Annual Report 2023
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19
Leadership Training ILP/ILP²/PLE
Our leaders are vital for PUMA becoming FOREVER.FASTER. We highly value their skills and leadership
expertise in mastering complex challenges in a volatile world while achieving our goals of excellence.
Our International Leadership Programme (ILP & ILP²) provides staff with essential competencies and
promotes a shared knowledge of our leadership culture. PUMA leaders receive comprehensive training and
coaching, including interactive learning, roleplay, best-practice learning, and joint projects. Mindful
leadership and agile work are emphasised. The programme's modular design allows managers to apply
their newly acquired knowledge between seminars. 191 global leaders took part in this state of the art
programme.
We continued to promote healthy and sustainable leadership in 2023 with the PUMA Leadership Expedition
programme. It is designed to teach leaders how to lead well in a VUCA world marked by volatility,
uncertainty, complexity, and ambiguity. Self-driven learning, nugget-learning, learning sprints, and peer-
learning underpin this virtual, easily accessible course.
Our leaders can choose what, when, and how to learn from over 130 one-hour learning nuggets with a
balanced mix of trainer-led virtual sessions and self-directed learning. To maximise learning and transfer
success, the programme is centred on Learning Sprints, which include trainer-led sessions, self-driven
nugget learning, retrospective sessions with coaches, and group assignments. 67 talents completed the
programme successfully in 2023.
First-time managers get PUMA-tailored training “From employee to manager” to prepare them for their
new role and ensure a common concept of leadership at PUMA. This programme includes training modules
and individual coaching as well as online pre- and post-learning. Classroom trainings provide new
executives with recruiting and appraisal skills.
Speed Up/Speed Up²
Retaining talent and speeding up their progress is important for the success of our business. Two selective
development programmes, Speed Up and Speed Up², are designed to help us reach this goal by bringing out
the best in our people.
An intensive curriculum of cross-functional projects and tasks, coaching, mentoring, and specialised
training prepares employees for their next career steps. Participants also get to meet top management and
build strong networks around the world.
Future Talent
We are always looking for future talent we can develop and equip with the relevant skills to take on
demanding PUMA Group responsibilities. We participate in various career fairs and university initiatives
both locally and abroad to approach potential employees and identify suitable candidates. Plenty of options
in an international work environment make PUMA an excellent place for career starters.
Nine apprentices and six dual students joined the PUMA Headquarters in Herzogenaurach in 2023. Dual
study programmes are available in International Business, Fashion Management, and Business Informatics.
Students acquire theoretical grounding through partnerships with various universities and practical
experience in different PUMA teams. Our apprentices either train as industrial clerks, IT specialists or retail
sales manager. They work in various company departments to build personal and professional skills and
increase their knowledge while attending vocational school. By the end of 2023, PUMA employed 41 trainees
and dual students.
Internships and working student positions are another way to become familiar with PUMA. Students from
around the world get six months of work experience as well as the opportunity to build their network and
hone their talents. By the end of 2023, roughly 140 interns and working students were part of the PUMA
family.
PUMA Annual Report 2023
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20
Future talents at the PUMA Headquarter
Feedback
We value internal and external feedback at PUMA, as it reveals whether we are on track and helps us grow.
We compare ourselves to other organisations and gain valuable insights from our employees.
Our "listening strategy" includes surveys, pulse surveys, focus groups, interviews and sentiment analysis to
gauge employee mood and understand their needs. For this, we use tools such as Amber, Leena AI, and
Workday. Our Top Employer certification, Great Place to Work award, “berufundfamilie” audit, and other
honours reflect regular industry benchmarking.
Since 2009, we have conducted global employee opinion surveys regularly to monitor employee engagement
and collect feedback on various topics. Overall, 15,339 employees participated in our 2023 global survey to
share their workplace and work life opinions. This equates to an 85% participation rate (2021: 86%). Despite
geopolitical tensions in Europe and their far-reaching social and economic effects, from 13 categories two
categories saw an increase in favourable scores, four categories stayed at their high levels, and seven
categories saw a slight 1% decrease from the last survey. Our poll results beat or match market data,
including high-performance data, in all but four categories. High-performance companies outperform the
market financially and consistently score excellently in surveys. This positive feedback inspires us to
continue and further strengthen the measures we have implemented. We shared the survey results globally,
locally, and at departmental level, and follow-up actions were devised.
Engagement
Outstanding performance and ongoing growth demand our employees' commitment and dedication. We
monitor employee engagement by regular global employee opinion surveys. The most recent one achieved
again an extraordinarily high engagement score of 91%, compared to 92% for the previous survey. This
implies our engagement score over the last three surveys has remained strong, something we are very proud
of. We value our employees' high level of engagement and brand loyalty and intend to retain this in the future.
We started already to implement the action plan resulting from this year's global employee survey.
PUMA Annual Report 2023
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21
↗ G.01 EMPLOYEE ENGAGEMENT SCORE
REWARD, RECOGNITION & BENEFITS
Compensation & Benefits
The attractive performance-based compensation system at PUMA consists of fixed base salary, PUMA
bonus schemes, profit-sharing programs and various social benefits and intangible benefits. We also offer
long-term incentive programs to the senior management level that honours the sustainable development
and performance of the business. The bonus system is transparent and globally standardised. Incentives
are exclusively linked to company goals.
Ensuring fair and non-discriminatory compensation at PUMA is one of our strategic priorities. Our
compensation framework is based on analytical job evaluations and a global grading system. Since the
criteria to be evaluated relate exclusively to characteristics of the job – not to the job holder – the
remuneration system as such is gender-neutral. This enables us to rule out any gender-specific
discrimination emanating from the compensation system.
After becoming Universal Fair Pay Analyst in Germany in 2022, PUMA was certified as Universal Fair Pay
Developer in Germany by FPI Fair Pay Innovation Lab as we successfully closed the adjusted pay gap in
January 2023. We extended the gender pay analysis to our subsidiaries in Europe and EEMEA markets by
using the consistent methodology. For Sweden and United Arabic Emirates we also closed the adjusted gap
in 2023. Certain regression analysis results look optimistic, and we are confident to close the adjusted pay
gap with the support of both local and global management in other European countries soon. For markets
with highly diversified workforce, nationality does not have a significant impact in the analysis. In 2024, the
gender pay gap analysis will be continuously conducted and introduced to our other regions to enhance
internal fairness.
In addition, we have continued our cooperation with the Fair Wage Network and are able to access
benchmarks for all of our subsidiaries and analyse them in terms of living wages as defined by the Fair Wage
Network. For the year 2023 we can confirm, with regards to the Living Wage Adjusted Mean benchmark as
defined by the Fair Wage Network, that all of our employees are earning a living wage or more.
Wellbeing
At PUMA, we care about the well-being of our people. Through a variety of services and benefits, we strive
to improve the health and happiness of our employees. We started the wellbeing approach at our
headquarters in Herzogenaurach, Germany. All PUMA companies around the world have adopted it and
adapted it to their local needs and regulations. It is now an important part of all PUMA subsidiaries around
the world.
There are four components to our wellbeing programme: Flex, Social, Financial and Athlete.
As a sports company, we offer regular in-house sports classes and training, sporting events and free access
to the gym. We provide outdoor facilities for football, volleyball, basketball, tennis, and paddle tennis. Our
69%
71%
91%
92%
91%
2013
2015
2019
2021
2023
2023
PUMA Annual Report 2023
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22
exercise classes include meditation, yoga, Zumba, jumping fitness, and Pilates. We host bouldering, stand
up paddling, trampolining, bowling, snowshoeing, and skiing events, among others.
Our "Be Well Weeks", which promote healthy lifestyles, offered free health checks and nutritional advice, as
well as the opportunity for employees to explore the latest fitness and sports trends. We provide access to
health and wellness resources, such as ergonomic assessments, mental health days, and health-related
information. To foster camaraderie and a sense of community, we organise team-building and social events
for our employees.
Flexible Working Conditions
The wellbeing of our people goes hand in hand with excellent working conditions based on a unique culture.
We offer a range of models, such as flexible working, mobile office, part-time and sabbaticals, to help our
employees balance their work and personal lives and manage stress. They can choose from these models
at different points in their lives.
All our offices around the world have a hybrid working model, which is very flexible in terms of when and
where people work. Employees in Germany can take advantage of free employee assistance services
provided by one of our partners. Our headquarters in Herzogenaurach was awarded the German "audit
berufundfamilie" certificate in 2015, which it has held ever since. The certificate recognises among other
offers services such as a parent-child office, a nursing room, day care and summer camps for children
during school holidays.
PROGRESSION & PERFORMANCE
Digitalised Infrastructure (Digitalisation)
A big part of PUMA's plan to streamline processes and improve the employee experience is investing in our
digital infrastructure. Since 2017, Workday has been our main human capital management (HCM) system. It
covers HR tasks at all stages of the recruitment process, from candidate to employee experience,
simplifying tasks such as recruitment, talent management and employee engagement. As a result, the
workforce is seamlessly integrated throughout the candidate and employee lifecycle.
Through this digital platform, our employees can access HR resources and data at any time, in a controlled
and secure environment that protects data privacy and integrity. It gives both employees and managers the
tools and processes they need to manage people effectively.
Workday's easy-to-use dashboards give managers clear, actionable insights for strategic planning and
decision-making. And because all of our global data is stored in one place in Workday, it enables
comprehensive analytics that help us make evidence-based decisions and drive tangible results.
By using such a digitalised infrastructure, we aim to maintain our focus on operational efficiency and
improving our HR practices throughout the PUMA employee lifecycle. This supports PUMA's overall goal of
improving workplace operations and the employee journey. It also helps us to prepare for the future to
better deal with the dynamics of challenging labour markets.
OCCUPATIONAL HEALTH & SAFETY
We want our employees to be healthy and safe, so we make sure that health and safety issues in the
workplace are taken seriously. Although the COVID-19 pandemic ceased in 2023, we continued to provide
free masks, rapid tests and vaccines where needed. To help our employees cope with this politically and
economically challenging environment and its increased mental stress, we focused on mental wellbeing,
resilience, and mindfulness in 2023.
Our global occupational health and safety policy underlines the importance of this issue. PUMA has a
central Health and Safety Committee at our headquarters in Herzogenaurach, which meets every three
months. The health and safety experts on this internal committee exchange information on health problems
PUMA Annual Report 2023
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23
and risks and carry out regular health and safety inspections. These are supplemented by inspections by
official bodies such as the German Berufsgenossenschaft. Each of our major sites has local health and
safety experts. Our Global Director People and Organisation, as part of our Executive Management Team,
reports at least quarterly on health and safety issues to our Executive Committee.
In our Headquarter in Herzogenaurach we got successfully certified for the ISO 45001 standard. ISO 45001 is
an international standard that outlines the requirements for an occupational health and safety management
system (OHSMS) and provides a framework to proactively manage and improve the occupational health and
safety performance. This certification not only demonstrates our commitment to safety and compliance with
health and safety law but also helps us to identify and address safety risks.
We have set ourselves the bonus-related goals of zero fatalities and lowering the average injury rate year on
year. For 2023, we set a goal to stay below a lost time injury rate of 0.50. The lost time injury rate expresses
the number of lost time injuries per 200.000 worked hours. In addition to conducting safety training courses
at all our sites, we also offer online training programs to prepare employees for potential emergency
situations and thus reduce the number of accidents. In 2023, we promoted our digital OHS training course to
all our sites, which included hygiene and proper mobile office behavior. Last year, we provided a total of
27,764 hours of safety training, while 10,769 employees were trained in fire safety and 7,692 employees in first
aid. In 2023, 98 workplace accidents requiring a work stoppage were recorded worldwide. This corresponds
to a lost time injury rate of 0.46 compared to 0.45 in 2022. The lost time injury rate for PUMA SE was zero
and zero in the previous year. Another indicator of employee engagement and the health of our workforce is
the rate of absence due to sickness, which was 1.95% in 2023. We recorded no fatal accidents, and the rate
of occupational diseases was zero at PUMA in the last 12 years, including 2023.
↗ G.02 LOST TIME INJURE (FREQUENCY) RATE
SOCIAL ENGAGEMENT
Community Engagement
2023 was another good year for PUMA's community engagement. With the support of our employees, we
engaged with local communities around the world through various projects. These ranged from beach
clean-ups and tree planting to organising and participating in charity runs. Colleagues also helped
underprivileged people, especially children, by donating food and school supplies and started many other
wonderful initiatives.
0.81
0.37
0.35
0.39
0.45
0.46
4.06
1.87
1.66
1.96
2.27
2.29
2018
2019
2020
2021
2022
2023
LOST TIME INJURY RATE per 200,000 working hours
LOST TIME INJURY FREQUENCY RATE per 1,000,000 working hours
PUMA Annual Report 2023
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24
Community engagement activities: Reforestation in Renca (from PUMA Chile)
Here are two examples of how they have helped:
PUMA Ukraine supports children affected by the war. Many of these children have lost everything -– their
childhoods, their homes, and their friends. In collaboration with the Peace in Amour Shelter in Dnipro,
PUMA Ukraine employees sought to bring joy and warmth to these youngsters. Corporate staff, store
managers and warehouse staff personalised gifts for the children by printing their names on T-shirts,
backpacks, and hoodies.
The PUMA team in South Africa organised several projects. As part of a beach clean-up, they picked up litter
from the beach and riverbanks. They also went to animal shelters and walked and played with the animals,
bringing food and blankets for the pets. The biggest CSR events take place every year at the head office and
in the stores: In 2023, the group prepared 2000 staple food parcels and 850 amenity kits for food banks,
children's homes and elderly people who can not move around. South African retail workers across the
country packed individual sandwiches to send to organisations in their local areas.
We have set ourselves the ambitious goal of spending at least twice as many hours on social engagement as
our average full-time equivalents (FTE) this year. We encouraged all of our employees around the world to
participate and recorded projects and employee engagement on an online platform. In total, initiatives led
by our subsidiaries on five continents contributed a total of 57,344 hours (3,113 for PUMA SE) of community
engagement. With the projects, we helped protect the environment, promote health and fitness, fight
discrimination or support education for children in need. Often these projects were carried out in
cooperation with local non-profit organisations. Considering that the number of full-time employees (FTEs)
in 2023 was 18,681 (1,255 for PUMA SE), we significantly exceeded our target. Since the start of our
community engagement program in 2016, we have recorded now over 200,000 community engagement
hours globally.
PUMA Annual Report 2023
↗ Our People
25
↗ G.03 COMMUNITY ENGAGEMENT 2023
CHARITY CAT
Charity Cat organisation founded by employees continues to support projects near and far in 2023
The members of Charity Cat have a huge heart for people in need – whether that is right next door or across
the globe. The charitable organisation was founded by PUMA employees in 2004 and has been fundraising,
supporting special causes, and partnering with different other charities ever since. There is Sozialtreff
Erlangen, for example, in the next town over from PUMA’s headquarters in Germany. Charity Cat not only
supports Sozialtreff Erlangen with the food donations, but members of the charity actually help out within
that organisation.
Further afield, on the Philippine island Samar to be precise, Charity Cat has been supporting the activities of
the charity Herz zu Herz e.V. (which means “Heart to Heart” in English). The goal is to help the poorest
families and children there to build a roof over their heads, make sure they have enough to eat and send
them to school. This year’s success story from Samar was that several children were able to finish high
school, while two young people went through culinary school, with one of them landing a job in a five-star
hotel at the end!
Another long-time partnered organisation of Charity Cat is FONMEH e.V. in Haiti, that has built an orphanage
for a group of children and young people, keeping them off the streets and in education. In Haiti, the situation
has gotten a lot worse: due to droughts and inflation, around 40% of the country’s population is suffering
extreme hunger or does not have enough to eat. So, Charity Cat was glad to help at least the kids in
FONMEH’s orphanage – who have been sharing their food with friends as neighbours – as well as other local
people in Haiti with a special financial donation in 2023, on top of the usual clothes and financial support.
Other Charity Cat activities included payments for food donations to be driven to the Ukraine, where the war
that started over one year ago is still ongoing and affecting many people, as well as emergency financial
donations for the victims of the huge earthquake in the already hard-hit area of south eastern Turkey in
spring and the catastrophic flooding that struck eastern Libya in the summer via Aktion Deutschland Hilft
e.V.
Besides financial support, Charity Cat also gives away PUMA clothing and shoes to partnered projects. For
example „Wir packen’s an e.V.“received several donations of clothing, underwear and especially shoes, that
was distributed to refugees fleeing their countries via Greece, France or Bosnia.
Charity Cat raises money through generous monetary donations from individuals, by fundraising during
employee events and by organising internal sample give-aways of products provided by PUMA, during which
employees can donate money for different Charity Cat projects.
APAC
11,977
21%
LATAM
8,548
15%
North America
4,563
8%
Europe
13,089
23%
EEMEA
19,167
33%
PUMA Annual Report 2023
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26
DIVERSITY, EQUALITY & INCLUSION
At PUMA, equality and non-discrimination are an important part of our culture. We encourage and support
people of all genders and believe that diversity drives success. The different nationalities and backgrounds
of our employees is one of our key strengths. We employ people from 143 countries and at our home base in
Germany, we have people with more than 81 different passports. BE YOU, the central tenet of the PUMA
family, is essential to creating a respectful and supportive work environment where each employee can be
their true self. We want to create a culture that fosters collaboration and fairness. That is why we are
listening to our PUMA family to address systemic barriers and identify areas for improvement.
In 2023, we reviewed our diversity policy and included employee training on discrimination and injustice,
intercultural communication, diversity, inclusion and belonging. We also hosted talks with internal and
external speakers and published articles on our internal communication platforms to raise awareness.
Celebrating diversity!
We treat all our employees fairly and equally, regardless of their gender, nationality, ethnicity, religion,
disability, age, or sexual orientation. These values are also part of our PUMA Code of Ethics (2005) and our
2010 Diversity Charter.
During Pride Month in June, for example, we celebrated our commitment to diversity and inclusion with a
“Together Forever” summer party at our headquarters, complete with food trucks, a live band and a DJ set.
Our partners from Christopher-Street-Day Nuremberg e.V. had their own stand with information about
LGBTQ+ events in the area. We also put up rainbow flags at our headquarters and lit up the building in
rainbow colours.
We share our beliefs with the rest of the world and support various NGOs and groups around the world.
For the fourth year running, PUMA worked with The Christopher-Street-Day Nürnberg e.V. to celebrate
PRIDE month in the Nuremberg metropolitan area, support the local PRIDE parade and raise awareness.
We were proud to organise our own information stand for the first time. This gave us the opportunity to
connect with the PRIDE community and showcase PUMA’s diverse and inclusive workplace culture where
employees can truly be themselves.
In 2023, PUMA North America’s (PNA) Diversity, Equity and Inclusion (DEI) team designed strategies based
on their five pillars: Environment, Talent, Learning, Advocacy, and Marketplace. PNA has four Employee
Resource Groups: BBOLD for Black and Brown Employees + Allies, Puma Association of Women (PAW) for
Women + Allies, PumALLiance for LGBTQ+ Employees + Allies, and ROAR for Asian-American and Pacific
Islander Employees + Allies. Our efforts also included trainings for leaders to improve their resources and
best-practices needed to act as an inclusive leader.
PNA’s DEI team hosted several cultural celebrations throughout the year including a conversation with
Black Panther’ Oscar winning costume designer Ruth Carter for Black History Month, Peloton instructor
and PUMA ambassador Aditi Shah for AAPI Heritage Month, and PUMA Ambassadors Dapper Dan and Alex
Toussaint for Juneteenth.
“Culture Labs” quarterly conversations meant to build a culture of belonging for everyone and “Connect &
Reflect” sessions which focus on providing safe space conversations were also offered by PNA.
PNA officially kicked off our strategic talent partnership with Clark Atlanta University, a historically black
university (HBCU), to foster talents among underrepresented groups in the industry and has, in addition,
partnerships with ALPFA, Ascend, Boston While Black, the Black Footwear Forum, National Black MBA,
College of Creative Arts and Pensole Lewis College of Business and Design, amongst other collegiate
partners. To date, this partnership has allowed PNA to impact more than 100 students and PUMA will
provide over $ 1 million in scholarships over a 5-year period.
PUMA Annual Report 2023
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27
Our efforts over the past year have been recognised with independent awards that we are delighted to
receive.
For the fourth year running, the Financial Times named us one of Leaders in Diversity, reflecting our
commitment to creating a diverse, equal, and inclusive culture. In terms of diversity, we are proud to be
included in the Pride Index and to be one of the top teams in the British Business Women Awards series.
Integrating Diversity, Equality, and Inclusion (DE & I) into the fabric of our business will help us maintain and
enhance our international competitiveness.
Actions to promote gender equality
We promote equality and are pleased that the PUMA Group has a balanced gender mix, with approximately
50% women and 50% men working with us. 44% of our STEM (Science, Technology, Engineering and
Mathematics) employees are female. Women held 43% of global leadership positions in 2023. Thanks to
PUMA's equal opportunities work, this figure has been on a high level over the last few years (2018: 40%,
2019: 41%, 2020: 43%, 2021: 44%, 2022: 44%, 2023: 43%). Due to the discontinuation of our Russian Operation
this year’s figure decreased by 1%. However, in the rest of the world the share of female managers has
increased by 0.2%. But there is still room for improvement. We are committed to increasing the number of
women in leadership positions around the world in the coming years, especially at the highest levels of
management.
↗ T.03 PERCENTAGE OF WOMEN IN MANAGEMENT POSITIONS (IN %)
Region
2017
2018
2019
2020
2021
2022
2023
Europe
31
31
35
34
37
37
39
EEMEA
38
43
42
44
42
40
35
North America
46
48
50
48
48
48
47
Latin America
35
38
38
40
45
44
44
Asia/Pacific
41
44
43
48
49
50
50
Total
38
40
41
43
44
44
43
In addition, the Supervisory Board of PUMA SE has set a target of at least two women (33%) for the
proportion of women on the Supervisory Board. For the Management Board, the Supervisory Board has set
the following targets for the proportion of women: (i) At least one woman (25%), on condition that PUMA SE
has four Management Board members, (ii) at least one woman (20%), on condition that PUMA SE has five
Management Board members, (iii) at least two women (33%), on condition that PUMA SE has six
Management Board members. We set ourselves an implementation deadline by October 31, 2026.
We want to continuously support the development of women in management positions. For this reason, we
offer special training and access to inspiring networks. The exchange with experienced female managers is
intended to encourage and motivate female employees to take on leading roles within the company
themselves.
We see the fact that PUMA has two women on the Management Board of four since January 1, 2023, with
Anne-Laure Descours (CSO) and Maria Valdes (CPO), as a success of our efforts to achieve equal
opportunities.
The average age of our employees worldwide is 32. Our employees represent all working age groups.
PUMA Annual Report 2023
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28
↗ G.04 AGE GROUP
BEING INCLUSIVE
We prioritise creating an inclusive workplace where people with disabilities can work and grow. We adapt
workplaces and training to meet their needs. In Germany, an elected works council member represents the
interests of employees with disabilities. In some countries, legal issues prevent our companies from
recording disability status and severity. Around 1% of our employees have told us that they have a severe
disability, but the true number is probably higher.
OFFBOARDING
Our aim is to ensure that the employee’s last day is as positive as their first day at PUMA, signifying an
appreciative end to the employment relationship. We facilitate a respectful and insightful offboarding
process, allowing both PUMA and the employee to reflect on their time together, ensure knowledge transfer,
and maintain a positive relationship post-employment. Employees are asked to complete an anonymous exit
questionnaire on Workday to provide feedback about their work experience. We will conduct an in-depth exit
interview to understand the reasons behind the decision to leave and propose to reapply in the future. We
also ask the leaving employees to remain a part of the PUMA family by joining our Alumni Network. This way
we keep in touch fostering professional networking opportunities as well as using this platform as talent
pool for future rehires.
AWARDS
As a global employer, PUMA received many awards in 2023. One of our main goals is to provide our
employees with a workplace where they can grow and take on new chances.
Forbes, together with market research company Statista, created the “World's Best Employers”
certification. We are proud to be included for the fourth year running in 2023. We were also awarded as one
of the “World’s Top Companies for Women” 2023 by Forbes and Statista. In addition, we have also been
recognised by Newsweek and Statista as one of the “World's Most Trustworthy Companies”. The Financial
Times together with Statista appointed us as “Leader in Diversity” for the fourth year in a row.
In addition to global recognition, we also received several regional awards. Focus magazine named PUMA
Europe “Top Nationaler Arbeitgeber” 2023. This award reflects our efforts to create a diverse, equal, and
inclusive culture. In terms of diversity, we are very proud to be listed in the Pride Index, and to have been
named one of the top teams in the British Business Women Awards series. All of this demonstrates that
PUMA supports and promotes diversity at all levels and around the world.
less than or equal to 20
11%
21-25
20%
26-30
21%
31-35
18%
36-40
12%
41-45
8%
46-50
5%
51-55
3%
56-60
2%
61-65
0.70% 66-70
0.10%
11%
20%
21%
18%
12%
8%
5%
3%
2%
0.7%
0.1%
0%
Less than or equal to 20
21-25
26-30
31-35
36-40
41-45
46-50
51-55
56-60
61-65
66-70
above 70
PUMA Annual Report 2023
↗ Our People
29
For five years in a row, we won India's Great Place to Work award. In addition, our Southeast Asian PUMA
site in Taipeh received three prestigious awards: HR Asia Best Companies to Work for in Asia 2023, HR Asia
Digital Transformation Awards 2023, and HR Asia Diversity, Equity & Inclusion Award 2023.
For Germany PUMA was ranked among the TOP 100 companies by Statista and was appointed as kununu
Top Company 2024 among the most popular 5% of the companies. Textilwirtschaft ranked us as number five
of the Top Arbeitgeber in der Textilindustrie in Deutschland 2023. And FOCUS magazine rated PUMA Europe
GmbH as Best National Employer 2023 in Germany.
In the Netherlands our Dutch PUMA store at McArthur Glen Designer Outlet in Roermond was awarded
Retail Store of the Year 2023.
Austria PUMA Dassler GmbH was certified as LEADING EMPLOYERS Österreich 2023 and is one of the TOP
1% of employers in Austria.
On top of this, we have been recognised as a Top Employer in 24 PUMA countries, this counts for 87% of the
PUMA population globally, including Germany, Austria, France, Italy, Spain, Poland, Ukraine, the United
Kingdom, Turkey, South Africa, India, Japan, Vietnam, South Korea, China and Hong Kong, Australia, USA,
Canada, Argentina, Chile, Brazil, Peru and Mexico, as well as in the four regions: Europe, Asia Pacific, North
America, and Latin America. We are especially proud to be named one of the Global Top Employers 2024.
Being recognised by various prestigious institutes and organisations around the world is not just an honour
but a responsibility that we take very seriously. We are committed to continuing our journey of people
excellence, ensuring that PUMA remains a place where talents are nurtured, achievements are celebrated,
and diversity is embraced.
PUMA Annual Report 2023
↗ Sustainability
30
SUSTAINABILITY
Foreword Anne-Laure Descours, CSO
31
Awards and Recognitions
34
PUMA’s FOREVER. BETTER. Sustainability Strategy 35
Sustainability Organisation and Governance
Structure
36
Most Material Aspects
42
Scope of the Report
48
Due Diligence and Risk Assessment
49
Human Rights
53
Fair Income
79
Health and Safety
89
Environment
94
Climate
104
Chemicals
133
Water and Air
142
Plastics and the Oceans
153
Circularity
156
Products
165
Biodiversity
177
Environmental Key Performance Data
184
Reporting in Accordance with the EU Taxonomy
Regulation
188
Index for Combined Non-financial Report and GRI
content
198
KPMG Assurance Statement
205
PUMA Annual Report 2023
↗ Sustainability
31
FOREWORD ANNE-LAURE DESCOURS, CSO
In 2023 we started preparing our sustainability vision for 2030 by asking our most important partners and
internal decision-makers to give us feedback on the sustainability topics that are most relevant for PUMA.
The results are included in the materiality assessment published in this report.
In parallel, we accelerated the implementation of our FOREVER. BETTER. Sustainability Strategy, making
progress towards achieving our 10FOR25 targets in Climate Action, Circularity, and Human Rights.
From a products and materials perspective, we produced eight out of ten products* according to our PUMA
Sustainability Index, which means these products are made with materials that are classified as preferred
fibres by Textile Exchange or originate from certified sources. In 2023, 99.7% of all leather was sourced from
Leather Working Group-certified tanneries, 99.2% of all cotton was sourced from Better Cotton licensed
farms or recycled and 99.4% of all paper and cardboard packaging was FSC-certified or recycled paper and
cardboard.
In Circularity, we expanded take-back programmes in three new countries. Meanwhile, almost 65% of the
polyester used for our apparel and accessories products came from recycled materials. We also started to
scale up the use of recycled cotton, which reached 8.6% in 2023.
We published the results of our RE:SUEDE project, an experiment to turn a new version of our iconic Suede
sneaker, into compost (under tailor-made industrial composting conditions) and expanded our RE:FIBRE
programme to transform textile waste and other used materials into new textiles. During the Women's
World Cup in Australia, the Swiss National Team played in RE:FIBRE jerseys, and our club partners re-
↗ ANNE-LAURE DESCOURS
CHIEF SOURCING OFFICER (CSO)
* Excluding products produced by PUMA Group company stichd and PUMA United. For further details on the reporting scope,
please refer to the Scope of the Report section.
PUMA Annual Report 2023
↗ Sustainability
32
launched the RE:FIBRE initiative by deploying new take-back bins in additional locations. Overall, 46,000
RE:FIBRE garments were produced in 2023.
To help fight climate change, we continued to source 100% renewable electricity for PUMA’s own offices,
stores, and warehouses, with either renewable electricity tariffs or renewable energy attribute certificates.
We also invested over € 2 million to electrify our PUMA car fleet and the first low carbon shipment tariffs
with our logistics service provider Maersk were implemented for our most important sea freight routes
between Asia and Europe. This has helped us to reduce our own carbon emissions by 85% (market-based,
including the purchase of RECs) compared to our 2017 baseline, as well as our logistics emissions from sea
freight by almost 50% compared to 2022.
In our supply chain, recycled material was up to 22% of the total material used for our products. Our core
suppliers continued to transition to renewable energy with large-scale rooftop solar PV installations, REC
purchases, and to transition boiler fossil fuels to renewable fuels. As a result, we reduced our absolute
Greenhouse Gas emissions (for Scope 3 category 1) by 30% compared to our 2017 baseline and our core
suppliers used 22% of renewable energy.
In 2023, PUMA joined Zero 100, a cross-sector membership-based research and intelligence organisation, to
accelerate progress on Digital Supply Chain Transformation and the path to zero carbon emissions.
On the social side, more than 222,000 factory workers received training on sexual harassment at work,
achieving our target three years ahead of schedule. As a long-term signatory to the Bangladesh
International Accord on Building and Fire Safety, we also joined Accord Pakistan and a pilot to establish an
Employment Injury Scheme in Bangladesh. Collectively, our PUMA employees contributed 57,000 hours of
community engagement work around the globe to support educational, women empowerment,
environmental, and sports activities.
Our efforts were recognised in several rankings and ratings such as the Corporate Human Rights
Benchmark, the Platform Living Wage Financials Benchmark, Know the Chain, the Carbon Disclosure
Project and being a finalist of the German Sustainability Award.
Despite this recognition, there are still many areas for improvement. We need to further strengthen our
efforts in Human Rights, Climate Action and Circularity.
Following our Conference of the People in 2022, we created our Voices of a RE:GENERATION initiative.
Empowering a cohort of four Young Voices to help PUMA identify key areas for improvement. Through
various projects, the Voices are helping us to communicate in a way that resonates with the next generation,
bringing new perspectives and challenging PUMA to think differently. The Voices have met several times
with key players at PUMA to discuss the progress and challenges surrounding our FOREVER. BETTER.
Sustainability Strategy and produced PUMA RE:GEN Reports; a podcast series created to engage and better
communicate with the younger generation on PUMA’s FOREVER. BETTER. 10FOR25 targets. The Voices have
also produced RE:HACKS (a social content series sharing tips with consumers on how to extend the lifespan
of clothing and kicks). The Voices participated in our materiality assessment, giving input into what will
shape PUMA's 2030 Sustainability Strategy.
There is only one Forever – Let’s Make it Better.
PUMA Annual Report 2023
↗ Sustainability
33
HIGHLIGHTS OF 2023
We continued to implement our FOREVER. BETTER. Sustainability Strategy working towards our 10FOR25
sustainability targets. We also started preparing for the Corporate Sustainability Reporting Directive (CSRD)
and of our next target cycle for 2030 with a new double materiality analysis.
Eight out of ten PUMA products globally were made with a significant part of recycled or certified materials,
such as better cotton or recycled polyester.
In Circularity, we re-launched product take-back initiatives at selected stores of our major football club
partners. At PUMA, we now operate take-back bins at our Headquarters Store in Germany as well as stores
in the USA, China/Hong Kong, and Australia. We equipped the Swiss National Women’s Football Team with
jerseys made from our RE:FIBRE initiative for the Women’s World Cup in Australia and launched product
take-back bins at our stores in Switzerland.
In Climate Action, we agreed on a new more ambitious science-based greenhouse gas reduction target with
the Science Based Targets initiative (SBTi) and published our first Climate Action Transition Plan. We
continued to power our own offices, stores, and warehouses with 100% green electricity (including purchase
of RECs) and added 92 electric cars to our PUMA car fleet. We decreased the air-freight ratio for the
transport of our products to under 0.5% and started using biofuels for the shipping of PUMA products from
Asia to Europe. We decreased our absolute Scope 3 emissions from the category purchased goods and
services by 30% from 2017 to 2023, our core suppliers used 22% of renewable energy and almost 62% of the
polyester used in our products is recycled.
In Human Rights, we made the payment of a fair wage a bonus relevant topic for PUMA's own staff and
continued to track the payment of wages at our core suppliers. For our core supplier Tier 1 factories, the
average payment is 12.7% above minimum wage. 222,933 factory workers received training on sexual
harassment and 83,089 were paid a living wage on average. Our PUMA employees donated 57,000 working
hours to community engagement work and we continued to focus on diversity and inclusion, for example by
increasing the percentage of women on our management board to 50% and by becoming a signatory of UN
Women Empowerment Principles (UNWEPs). Finally, we appointed a Human Rights Officer and worked on a
Human Rights Handbook for our employees to be published in 2024.
In Biodiversity, we continued to partner with the Fashion Pact and Textile Exchange and supported the
publication of a biodiversity landscape report for our industry. To ensure that the leather used for PUMA
products does not contribute to deforestation, we joined the call to action launched by the Leather Working
Group and Textile Exchange to source all bovine leather from deforestation-free supply chains by 2030 or
earlier. Since 2022, almost all tanneries used for PUMA leather products have been certified by the Leather
Working Group. For paper and cardboard, 99.4% are either FSC-certified and/or recycled, to avoid any link to
deforestation.
PUMA Annual Report 2023
↗ Sustainability
34
AWARDS AND RECOGNITIONS
Our sustainability efforts continued to be recognised in several external rankings and recognitions. In 2023,
PUMA maintained its triple-A rating from MSCI, achieved a “good” rating from the critical consumer
labeling organisation “Good on You”, and achieved the highest score in the Platform Financials for Living
Wages benchmark report and Corporate Human Rights Benchmark for our industry, and maintained an A
rating from CDP.
PUMA once again topped the FTSE4Good sector ranking. We received a prime rating from ISS and were
included in the Corporate Knights Global 100 Most Sustainable Companies list for the third year in a row,
leading the textiles and clothing peer group. PUMA also had the highest score among all sports brands in
the S&P Corporate Sustainability Assessment.
At the same time, we continued to receive critical feedback in reports issued by Stand Earth on the use of
biomass as a replacement for coal in our supply chain, the Changing Markets Foundation on the
dependence on oil as a raw material for synthetic fibres and components, Labor Behind the Label on
working conditions in Pakistan, and Clean Clothes Campaign and Action Aid on the wage gap during the
COVID-19 pandemic in Cambodia. We consider these critical remarks as we develop our sustainability
standards, process and strategy.
PUMA Annual Report 2023
↗ Sustainability
35
PUMA’S FOREVER. BETTER. SUSTAINABILITY
STRATEGY
Sustainability remains an integral part of the strategic priorities for PUMA under the leadership of our CEO
Arne Freundt and our CSO Anne-Laure Descours.
Our FOREVER. BETTER. Sustainability Strategy is based on our 10FOR25 targets, which were introduced in
2019 following an extensive materiality analysis and stakeholder dialogue. In 2023, we updated our
materiality analysis in preparation for our new target cycle until 2030. The results confirm that the areas of
Human Rights, Circularity, and Climate Action (including Biodiversity) were ranked as a high priority.
Until the end of our 10FOR25 targets period, we will still report on the 10 target areas to improve our
sustainability performance: Human Rights, Climate Action, Circularity, Products, Water and Air, Biodiversity,
Plastics and the Oceans, Chemicals, Health & Safety as well as Fair Income.
For each of these target areas, which reference the related United Nations Sustainable Development Goals
(SDG), we have defined a minimum of three concrete targets, as well as key performance indicators to
follow the progress we have made.
With our FOREVER. BETTER. Sustainability Strategy, we continue our path to fully integrate sustainability
into all our core business functions. Sustainability targets are part of the bonus arrangements for every
member of our global leadership team, from the CEO to Team Heads.
PUMA’s Code of Conduct and our vendor compliance programme, which were introduced more than 20
years ago, are still the basis for any contractual relationship with manufacturers globally and remain the
foundation of our responsible sourcing strategy and programme. We revised the Code in 2023 and will
publish the new version in 2024.
PUMA Annual Report 2023
↗ Sustainability
36
SUSTAINABILITY ORGANISATION AND
GOVERNANCE STRUCTURE
PUMA’s sustainability organisation is structured and governed in multiple ways:
• At the Supervisory Board level, with a Sustainability Committee. In 2023, we had several meetings to
discuss the PUMA action plan related to the Corporate Sustainability Reporting Directive (including our
plan to conduct a double materiality assessment in 2023). We had a deep dive discussion into Human
Rights including PUMA work on fair income, responsible purchasing practices, the implementation plan
of the German Supply Act and critical feedback received through NGO reports regarding factories'
working conditions. We also had a deep dive discussion into circularity, including PUMA programmes
and projects update, and into Climate actions including our 2030 decarbonisation pathway plan.
• At the Management Board level, the responsibility for sustainability is assigned to the Chief Sourcing
Officer (CSO).
- There were several Management Board meetings in 2023 with dedicated sustainability updates and
decision on topics like the 2022 sustainability target status and 2023 action plan, PUMA’s action plan
related to the German Supply Chain Act and Corporate Sustainability Reporting Directive (including
our plan to conduct a double materiality assessment in 2023), new minimum wage negotiation
development in Bangladesh and PUMA’s position, circularity programmes and projects status and our
2030 decarbonisation pathway plan.
- PUMA’s CEO, the Chair of the Supervisory Board and the Works Council all participated in our
materiality assessment, which will lay the foundations of our new Sustainability Strategy for 2030.
- Our CSO has a monthly meeting with the Sustainability Leads for corporate and supply chain
sustainability. Topics include Human Rights, Health and Safety, and chemical programmes, as well as
climate and water projects in the supply chain.
• At the Functional Heads level, with an Executive Sustainability Committee.
- The Executive Sustainability Committee comprises of all Functional Heads of the company, such as
the People & Organisation, Sourcing, Finance, IT, Marketing, Risk Management, Investor Relations,
Retail, Logistics and Legal Affairs. The committee met twice in 2023 to provide an update on
sustainability programmes and approved the 2023 Sustainability Bonus Targets.
• At the Product level, with a Cross-Functional Business working group and monthly updates on PUMA’s
more sustainable product strategy and execution.
• At the Subsidiary level with nominated Sustainability Leads for each PUMA subsidiary (quarterly updates
on PUMA Sustainability Strategy and performance, best practice sharing from individual subsidiaries).
• At the Sustainability Experts level, with a corporate sustainability department and a supply chain
sustainability department.
• At the Legal and Compliance level, with a Human Rights Officer. In December 2023, PUMA appointed
PUMA General Counsel Corporate Governance & Compliance as Human Rights Officer. The Human
Rights Officer shall monitor PUMA’s risk management system, risk analysis relating to Human Rights
and compliance with Human Rights due diligence regulations.
• PUMA has a Health and Safety Committee that operates in the headquarters and conducts quarterly
meeting. This committee regularly reviews existing reports on known health and safety risks, conducts
frequent health and safety inspections and exchanges documentation on health issues and risks. The
Global Director People & Organisation, who is part of the Health and Safety Committee, informs the
Management Board of PUMA SE about relevant health and safety matters at least quarterly.
PUMA Annual Report 2023
↗ Sustainability
37
↗ G.01 SUSTAINABILITY ORGANISATION CHART
SUSTAINABILITY PERFORMANCE-RELATED REMUNERATION
At PUMA, we link performance criteria in the remuneration of all leaders globally with clear and defined
sustainability targets. The variable annual performance bonus is based on the achievement of PUMA’s
FOREVER. BETTER. Sustainability Strategy targets.
All PUMA leaders globally, from the CEO to the Team Head level, have clearly defined sustainability targets
as part of their annual performance bonus. These targets are aligned with PUMA's FOREVER. BETTER.
Sustainability Strategy and focus on our 10FOR25 sustainability target areas: Human Rights, Climate Action,
Circularity, and Health and Safety. The targets cover 10% of the overall bonus for members of the
Management Board and 5% for other leaders globally.
↗ G.02 REMUNERATION CRITERIA BY WEIGHT
90%
10%
For management board
95%
5%
For other leaders globally
ESG related indicators
Financial indicators
PUMA Annual Report 2023
↗ Sustainability
38
↗ T.01 2023 BONUS TARGETS
Area
Percentage
of Bonus Corporate & Subsidiaries Target
Sourcing & Supply Chain Target
Human
Rights
1.25%
(2.5%)
All PUMA employees are paid a living wage;
2 hours community engagement per FTE
No zero tolerance issues prevailing at year
end
180,000 workers training on women
empowerment
Climate
Action
1.25%
(2.5%)
30% of all cars in PUMA's car fleet hit the EU
Taxonomy definition of a low-emission car
(<50 g CO2/km)
Air freight ratio for transport of goods reduced
to under 0.5%
15% renewable energy for core suppliers
Health and
Safety
1.25%
(2.5%)
Zero fatal accidents;
Injury rate below 0.5
80% employees trained
Zero fatal accidents;
Injury rate below 0.5
100,000 workers trained
Circularity
1.25%
(2.5%)
Increase percentage of recycled polyester to
60% for apparel and accessories and 50% for
footwear
Take-back schemes rolled out in one country
each in Americas, Europe and Asia
Increase percentage of recycled polyester to
60% for apparel and accessories and 50% for
footwear
STAKEHOLDER OUTREACH
To ensure that the PUMA Sustainability Strategy covers the most relevant topics, we use a formal
materiality analysis process combined with stakeholder dialogue and outreach.
For our updated materiality assessment, we interviewed several non-profit stakeholders including the
Global Trade Union Federation IndustriAll, Fair Labor Association, Textile Exchange, United Nations
Framework Convention on Climate Change (UNFCCC), and the German Development Organization GIZ.
Our first PUMA stakeholder dialogue dates back to 2003. Since then, we have organised 15 in-person
stakeholder meetings and held one virtually. Our stakeholder dialogue includes representation in and
contribution to several sustainability initiatives. In 2023, we actively participated in several sustainability
initiatives and events, such as conferences by the UNFCCC (Global Stocktake and COP28), ZDHC (Board
Meetings), Textile Exchange Annual Conference, Better Work Global Business Forum, OECD Forum on Due
Diligence in the Garment and Footwear Sector, Better Cotton Initiative Annual Conference and the Global
Fashion Agenda (Global Conference), to name just a few. Our overall investment in partnerships to
accelerate sustainability efforts amounts to over € 1 million. Our next formal PUMA stakeholder dialogue
meeting is planned for April 2024.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively, further details are given in the Due Diligence and Risk Assessment section of this
report.
PUMA has placed a large emphasis on industry collaboration and, where possible, supporting existing
industry initiatives. Collaboration with our peers is paramount to streamlining the sustainability efforts of
our industry. We believe that encouraging the alignment of individual industry organisations, e.g.,
converging the use of tools and processes, makes the overall system more efficient.
PUMA Annual Report 2023
↗ Sustainability
39
↗ G.03 MATRIX OF KEY PARTNERSHIP INITIATIVES
CONFERENCE OF THE PEOPLE AND VOICES OF A RE:GENERATION
In 2022, PUMA held the Conference of the People, a first-of-its-kind event for PUMA. Industry peers,
activists, NGOs, experts, ambassadors, and consumers came together to discuss solutions for some of the
fashion industry’s pressing sustainability challenges. With a special focus on Gen-Z, the conference
highlighted the need for brands to improve transparency and communication more regarding sustainability.
Following this event, in April 2023 PUMA launched its year-long Voices of a RE:GENERATION initiative,
empowering a group of Young Voices to help PUMA identify key areas for improvement and giving them a
seat at the table alongside leading stakeholders.
Through various projects, the Voices are educating, engaging and co-creating with PUMA to help improve
how PUMA communicates about sustainability in a way that resonates with the next generation, bringing
new perspectives and challenging PUMA to think differently. In September 2023, PUMA expanded the reach
of the initiative beyond Europe and the USA by adding Indian sustainable fashion advocate Aishwarya
Sharma. Aishwarya joined PUMA’s current Voices, the USA-based upcycler Andrew Burgess, Germany-
based sustainable and healthy living vlogger Luke Jaque-Rodney and France-based visual artist and
creative consultant Jade Roche.
PUMA Annual Report 2023
↗ Sustainability
40
Voices of a RE:GENERATION: Aishwarya Sharma, Andrew Burgess, Jade Roche, Luke Jaque-Rodney (from left to right)
To date, the Voices have met several times with key players at PUMA to discuss the brand’s progress and
challenges surrounding its FOREVER. BETTER. Sustainability Strategy and produced PUMA RE:GEN
Reports, a podcast series created to engage and better communicate with the younger generation on
PUMA’s FOREVER. BETTER. 10FOR25 target areas.
Since then, the Voices have also partnered with PUMA to produce RE:HACKS (a social content series
sharing tips with consumers on how to care for and extend the lifespan of clothing and kicks) and
participated in the PUMA 2023 sustainability materiality assessment, giving input into what will shape
PUMA’s 2030 sustainability action plans.
In October 2023, three of the Voices visited some of PUMA’s manufacturing partners in Bangladesh,
Vietnam, and Turkey to get their impressions of PUMA’s supply chain and experience the realities, progress
and challenges of sustainability at scale on the ground. Their learnings will be shared through their social
channels in 2024. Building on these efforts and progress, PUMA will continue the RE:GENERATION initiative
into 2024.
PUMA Annual Report 2023
↗ Sustainability
41
Voices of a RE:GENERATION visiting factories in Bangladesh, Turkey and Vietnam
PUBLIC POLICY ADVOCACY ENGAGEMENT
PUMA does not lobby as a separate entity. However, as part of our membership in industry federations and
expert organisations like the Federation of the European Sporting Goods Industry (FESI) or the Policy Hub,
our experts provide feedback on policy positions to those organisations and attend meetings with policy
makers from time to time. We ensure that our feedback provided is aligned with our Sustainability Strategy
and targets, such as limiting global warming to 1.5 degrees. In 2023, PUMA joined the Fashion Industry
Charter for Climate Action (UNFCCC) policy dialogue event in Bangladesh. Membership fees paid by PUMA
to the organisations involved in policy outreach are below € 300,000 per year in total.
Organisations engaged in public policy outreach in which PUMA is a member:
• Policy Hub
• World Federation of the Sporting Goods Industry (WFSGI)
• Federation of the European Sporting Goods Industry (FESI)
• Bundesverband der Sportartikelindustrie (BSI)
• Fashion Industry Charter for Climate Action (UNFCCC)
• Stifung Klimawirtschaft
PUMA Annual Report 2023
↗ Sustainability
42
MOST MATERIAL ASPECTS
PUMA performed a formal materiality analysis in 2018 – 2019 with the help of expert consultancy BSR. The
methodology, list of consulted stakeholders, and results were reviewed and approved by PUMA’s Managing
Directors. Materiality assessment results are also considered in the risk management process. Our risk
management function assesses our most material topics and the risks related to those topics in
collaboration with the risk owners. The 2019 materiality assessment formed the basis for our existing PUMA
FOREVER. BETTER. Sustainability Strategy and 10FOR25 targets, as well as the structure of this 2023 report,
and is outlined in the graph below. Further details on the methodology can be found in PUMA’s 2022 Annual
Report.
↗ G.04 PUMA’S MOST MATERIAL ASPECTS (2018 – 2023)
DOUBLE MATERIALITY ANALYSIS – 2024 AND BEYOND
In 2023, PUMA conducted an updated materiality analysis based on the principle of double materiality as
requested by the Corporate Sustainability Reporting Directive (CSRD). The methodology, list of consulted
stakeholders, and results were reviewed and approved by PUMA’s Managing Directors (CEO, Chief Financial
Officer, Chief Product Officer and Chief Sourcing Officer). PUMA’s CEO, the Chair of the Supervisory Board,
and a Workers Council representative participated in the materiality assessment.
The 2023 materiality assessment was conducted by the expert consultancy Radley Yeldar and included:
• A horizon scanning stage, including peer benchmark assessment, legislation, sustainability frameworks
and ratings, and media screening
• Development of CSRD-compliant impact assessment criteria
• Stakeholders interviews with 32 participants, including 16 PUMA and 16 external stakeholders as well as
an online survey (37 responses)
• Out of the interviews, eight in-depth interviews for financial impact were conducted, including investor
and lender views
• Results validation meetings between PUMA’s Sustainability Team and Radley Yeldar
• Managing Directors‘ approval
A total of 25 sustainability topics were selected after the horizon scanning stage to be evaluated by
stakeholders. Seven topics were identified by our stakeholders as being financially material to PUMA.
PUMA Annual Report 2023
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43
Social topics
• Forced and Child Labor in the supply chain
• Gender Equity in the supply chain
• Worker Wages in the supply chain
• Labor Conditions in the supply chain
• Employee engagement and development of own workforce
Other topics
• Circular Design and Production
• Supply Chain Traceability and Management
Seven topics were assessed to have a significant outward impact.
Social topics
• Worker Wages in the supply chain
• Labor Conditions in the supply chain
• Diversity, Equity, and Inclusion of own workforce
• Employee Engagement and Development of own workforce
Environmental topics
• Water Use in the supply chain
• Biodiversity, Land Use and Deforestation in the supply chain
• Climate Actions in the value chain
Notably, Labor Conditions, Worker Wages, and Employee Engagement and Development passed both the
financial and outward impact threshold for materiality. All eleven topics, targets and achievements,
identified as material (from a financial and outward impact perspective) are already included in this report.
Going forward, we will transition from our 10FOR25 targets toward our 2030 strategy, which will be based on
the new materiality assessment and the outcome of our stakeholder dialogue in 2024.
PUMA Annual Report 2023
↗ Sustainability
44
↗ G.05 PUMA’S DOUBLE MATERIALITY MATRIX
PUMA Annual Report 2023
↗ Sustainability
45
↗ G.06 PUMA’S 2025 SUSTAINABILITY TARGETS
*
SDG: United Nations Sustainable Development Goals
Human Rights
(SDG 3, 5, 8 and 10*)
Health and Safety
(SDG 3*)
Chemicals
(SDG 3 and 6*)
Water and Air
(SDG 6, 14 and 15*)
Biodiversity
(SDG 14 and 15*)
Climate
(SDG 7 and 13*)
Fair Income
(SDG 1, 2 and 10*)
Circularity
(SDG 9, 12, 14 and 15*)
Products
(SDG 12*)
Plastics and the Oceans
(SDG 3, 14 and 15*)
PUMA
SUSTAINABILITY
TARGETS
2025
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↗ T.02 PUMA 10FOR25 SUSTAINABILITY TARGETS PERFORMANCE SUMMARY
1
Not started
In progress
On track
Achieved
Target area
Targets for 2025
Performance 2023
Status
Target 1: Train 100,000 direct and indirect
staff members on women’s empowerment
222,933 factory workers and 3,727 PUMA
employees trained
01
Target 2: Map subcontractors and Tier 2
suppliers for Human Rights risks
Tier 1 subcontractors mapped
Tier 2 mapping completed (since 2022)
Human
Rights
Target 3: 25,000 hours of global community
engagement per year
57,000 hours
Target 1: Zero fatal accidents (PUMA and
suppliers)
Zero fatal accidents at PUMA
1 fatal accident at suppliers
02
Target 2: Reduce accident rate to 0.5 (PUMA
and suppliers)
0.46 at PUMA
0.2 injury rate at PUMA suppliers
Health and
Safety
Target 3: Building safety policy operational
in all high-risk countries
ACCORD Bangladesh: Progress rate 94%
Signed ACCORD Pakistan
Building safety assessments in 35
factories in Indonesia, India, Bangladesh
and Pakistan
Target 1: Ensure 100% of PUMA products
are safe to use
No product recall from the market
03
Target 2: Maintain RSL compliance rate
above 90%*
6,130 tests with RSL compliance rate at
98.7%
Chemicals
Target 3: Reduce organic solvent usage to
under 10 gr/pair
VOC index at 12.5 g/pair
Target 1: 90% compliance with ZDHC
Wastewater Guidelines
Conventional parameters: 99%
Restricted chemicals: 98%
Heavy metals: 99%
04
Target 2: 90% compliance with ZDHC Air
Emissions Guidelines
Our core Tier 1 and Tier 2 follow local
regulation
Joined ZDHC pilot
*
Water and
Air
Target 3: 15% water reduction per pair or
piece based on 2020 baseline
Textile: -4.9% per ton
Leather: +11.7% per square meter
Apparel: +9.4% per piece
Footwear: -21.5% per pair
Target 1: Align PUMA’s climate target with
1.5 degrees global warming scenario
SBTi approved our new 1.5 degree aligned
target for absolute GHG emission
reduction: Scope 1 and 2 by 90%, Scope 3
by 33% in 2030. Our first 2019 SBT
achieved in 2023.
05
Target 2: 100% renewable electricity for
PUMA entities
100% renewable electricity used for PUMA
entities (including RECs purchase)
Climate
Target 3: 25% renewable energy for core
suppliers
23.1% for Tier 1 (finished goods)
21.7% for Tier 2 (materials)
(including RECs purchase)
*
ZDHC air emission guidelines have not been yet released at the end of 2023. We have participated in a pilot in
collaboration with ZDHC to test the draft standards.
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Target 1: Eliminate plastic bags from owned
and operated PUMA stores
As of 1 January 2023, plastic bags are no
longer used in PUMA’s owned and
operated stores
06
Target 2: Support scientific research on
microfibres
Signed 2030 commitment of microfiber
consortium, 12 shedding tests conducted
Plastics and
the Oceans
Target 3: Research biodegradable plastics
options for products
RE:SUEDE experiment as a test for
biodegradability completed and results
publicly shared
Target 1: Establish take-back schemes in all
major markets
Take-back schemes established in at least
one country in each of Americas (the USA),
Europe (Switzerland) and Asia (Australia)
07
Target 2: Reduce production waste to
landfills by at least 50% compared to 2020
64.7% reduction of waste to landfill per
footwear pair
87.4% reduction of waste to landfill per
apparel piece
Circularity
Target 3: Develop recycled material options
for cotton, leather and rubber
Recycled cotton used at scale
Recycled rubber and reconstituted leather
used in selected collections
Target 1: Procure 100% cotton, polyester,
leather and down from certified sources
99.2% cotton
85% polyester
99.7% leather
100% down
08
Target 2: Increase recycled polyester use to
75% (apparel & accessories)
64.9% recycled polyester used for apparel
and accessories
Products
Target 3: 90% of apparel and accessories
classified as more sustainable
90% of all footwear contains at least one
more sustainable component
87% apparel volume
40% accessories volume
93% footwear volume
Target 1: Fair wage assessments for the top
five sourcing countries
Five out of five assessments completed
(Bangladesh, Cambodia, Indonesia,
Vietnam, China)
09
Target 2: Effective and democratically
elected worker representatives at all core
suppliers
66% core Tier 1 factories have elected
worker representatives
Fair Income
Target 3: Ensure bank transfer payments
for all core suppliers
100% core Tier 1 and Tier 2 suppliers use
digital payment
100% of workers are paid digitally in core
factories
Target 1: Support setting up a biodiversity SBT Sponsored a biodiversity landscape
analysis report with Textile Exchange and
Fashion Pact
10
Target 2: Procure 100% cotton, leather, and
viscose from certified sources
99.2% cotton
99.7% leather
84% viscose
Biodiversity
Target 3: Zero use of exotic skins or hides
Phased out the usage of kangaroo leather
during 2023
No exotic skins or hides in use
1
REC: Renewable Energy Attribute Certificates, RSL: Restricted Substances List, SBT: Science-Based Target, SLCP: Social
and Labor Convergence Programme, Tier 1 (T1) suppliers: Supplier of finished goods, Tier 2 (T2) supplier: Supplier of
materials or components, Tier 3 (T3) supplier: Supplier of yarn, hides, etc., VOC: Volatile Organic Compound, ZDHC: Zero
Discharge of Hazardous Chemicals
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SCOPE OF THE REPORT
DATA COLLECTION
In the Sustainability report, we cover the PUMA Group data, excluding PUMA United. We collect data from
our core suppliers of components, materials, and finished products. Our materials data excludes the
materials used by stichd (mainly socks and bodywear) and PUMA United, as well as the materials used for
Cobra Golf equipment, as these companies run their own sourcing. For social compliance data, PUMA
United, stichd, and Cobra Golf factories producing PUMA products are included. For environmental data, we
also report stichd own sites and factories according to PUMA’s Environmental Performance Rating System.
We do not provide separate reports for PUMA SE and the Group in the Sustainability section.
DATA SOURCES
To ensure a high level of transparency and promote the sharing of environmental and social data with our
industry peers, we have chosen to use external databases, most of which are publicly accessible:
• The Open Supply Hub, an open-source map and database of global apparel facilities
• The Fair Factories Clearinghouse for sharing social audit data with other brands
• The wastewater platform of the Zero Discharge of Hazardous Chemicals Foundation (ZDHC) for supplier
data on wastewater testing reports (ClearStream reports)
• The ZDHC Chemicals Gateway for the use of safe chemicals
• ZDHC-approved chemical inventory platforms: BHive, CleanChain, E3
• RSL database Green Arrow
• The China-based NGO IPE for the publication of suppliers’ environmental data
• IPE’s Green Supply Chain Map of environmental performance data of some of our core suppliers in
China
• The Higg Index Platform Worldy
• The Fair Labor Association (FLA) fair compensation dashboard to benchmark factory workers’ income
towards industry and/or living wage benchmark
• The Fair Wage Network database
• ACCORD Bangladesh inspections database: The Bangladesh Accord on Fire and Building Safety in
Bangladesh
• Worker Complaints – third-party platforms: MicroBenefits CIQ, Labor Solution - WOVO, Amader Kotha
We also use our own sustainability data collection tool to record social and environmental performance data
from PUMA-owned and operated sites and from the core suppliers that manufacture our products or the
material used in our products.
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DUE DILIGENCE AND RISK ASSESSMENT
PUMA conducts regular and industry-specific due diligence on human rights and labour, environmental, and
integrity risks (listed in T.03) for its own activities and across its supply chain as per the recommendations of
the UN Guiding Principles for Business and Human Rights, OECD Due Diligence Guidance for Responsible
Supply Chains in the Garment and Footwear Sector, and other relevant responsible business conduct
standards, such as the German Supply Chain Act. We embed responsible business conduct in our policies,
training, and management systems and identify actual and potential harms in our own operations and
supply chain.
↗ T.03 HUMAN RIGHTS & LABOUR, ENVIRONMENTAL AND INTEGRITY RISKS
Human Rights & Labour Risks
Environmental Risks
Integrity Risks
Child labor
Greenhouse gas (GHG) emissions
Bribery and corruption
Discrimination
Hazardous chemicals
Forced labor
Water scarcity
Occupational health and safety (e.g.,
worker-related injury and ill health)
Water pollution
Violations of the right of workers to
establish or join a trade union and to
bargain collectively
Landuse change
Non-compliance with minimum wage
laws
Waste
Wages do not meet basic needs of
workers and their families
Air emissions
Due diligence is an ongoing process, to identify, mitigate, and prevent risks and address their existing and
potential adverse impacts (e.g. child labour, discrimination, hazardous chemicals, etc.).
As stated in the “Corporate Governance Statement”, PUMA has a functioning Compliance Management
System (CMS) to systematically prevent, detect and sanction violations in the areas of corruption, money
laundering, conflicts of interest, antitrust law and fraud/embezzlement.
In response to the possibility of future crises and/or upcoming regulations, our vendors are recommended
to conduct their own due diligence. PUMA’s process of assessing the risk of potential harm to people
(human rights and labour and environmental risks) includes:
• External sources: NGO reports, media, country indices and country regulation, PUMA partnerships with
Fair Labor Association, Better Work, Fashion Charter, ZDHC, AFIRM, etc.
• Internal sources: PUMA social, chemical and environmental audit findings/data analysis, grievances
received per country, supply chain risk mapping, number of factories in countries with high risk, per
commodity, also including non-core factories, material processing and raw material extraction.
We prioritize risks based on:
• Severity: Scale (how serious the impact is), scope (how many people are or will be affected) and
irremediability
• The likelihood of risk occurring based on the operating environment: Conflict zone, weak governance;
mismatch between local practices and international standards
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Our mitigation measures include the factory monitoring programme, grievance mechanism, supplier
scorecard, business integration, goal-setting and internal and external reporting. The effectiveness of our
measures is evaluated based on progress and compliance with our policies.
PUMA’s policies are published on our website, as well as our factory monitoring programmes and
standards defined in our Social, Environmental, Occupational Health and Safety and Chemical Handbooks.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy, following Fair Labor
Association guidelines and approval. It formalizes PUMA’s commitment to engage with CSOs reactively and
proactively for information sharing (to understand concerns and to increase transparency about PUMA’s
works, challenges and progress) and for consultation purposes (to make informed sourcing decisions to not
impact people's rights) which can lead to collaboration to address a specific challenge or remediate an
issue.
It also defines the criteria below to plan the form and frequency of engagement:
• High-risk and high-production volume countries
• Severity and the likelihood of violations or risks
• Knowledge gaps regarding new or upcoming risks identified through a supply chain risk assessment
• Persistent issues identified through factory monitoring programme or risk assessment
• Concerns raised through PUMA grievance mechanisms and third-party reports
Proactive engagement with CSOs aims to develop and review our sustainability-related goals, policies and
standards, assess risks or get input for our double materiality assessment, develop remediation plans and
improve access to remedy, inform about PUMA’s sustainability performance and open issues and evaluate
the effectiveness of our due diligence processes, sustainability programmes and grievance mechanism.
Reactive engagement takes place when a concern is raised to PUMA. PUMA and PUMA’s suppliers offer
different grievance channels to any worker as well as third parties, including CSOs, to raise their concerns
regarding human rights, environmental protection and violations of PUMA’s policies: such concerns can be
raised through workers’ voice platforms, the PUMA hotline and Fair Labor Association third party
complaints.
PUMA also adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by geography, commodity and issue
• Complete a risk assessment for suppliers, factories and sites
• Manage risks that are material for each supplier, factory or site
Our 10FOR25 targets are linked directly to the four main sustainability-related risks identified in our due
diligence process:
• Potential human rights violations or incidents in our supply chain (Tier 1 and core Tier 2*)
• Potential incidents of environmental pollution in our supply chain (Tier 1 or core Tier 2)
• Potential non-compliance with chemical regulations during production (Tier 1 or core Tier 2)
• Negative effects of climate change (transition risks and physical risks)
The four main sustainability-related risks are reflected in the Risk Management System that PUMA has
established to identify and manage material risks or risks that could pose a threat to the company’s
objectives at an early stage. The Risk Management function conducts formal interviews with selected risk
owners (key function management responsible for identifying and addressing the risks) on a semi-annual
basis set to identify, evaluate, and report risks. The risk owners of PUMA’s Sustainability Department review
risks within their area of responsibility and report on the measures implemented to mitigate or reduce the
potential impact of sustainability-related risks to the Risk Management function.
* Tier 1 manufacturers of PUMA products; Tier 2 manufacturers of materials and components
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To mitigate and prevent sustainability risks, PUMA has set the 10FOR25 targets and implemented a due
diligence process. PUMA reports internally and publicly (through annual sustainability reports) on the
following activities and progress toward our 10FOR25 targets:
• Conducting regular complete and follow-up social audits based on International Labor Organization
standards (including reaudits and capacity building projects) for all Tier 1 and core Tier 2 suppliers.
• Monitoring performance with factory environmental management system via Higg Index Facility
Environmental Module (FEM), regular RSL (Restricted Substances List) testing of materials and
products, input chemistry control via Manufacturing Restricted Substances List (MRSL) by ZDHC, output
control via wastewater tests by independent and accredited laboratories.
• Following the status of new regulations via industry associations such as the Federation of the European
Sporting Goods Industry (FESI), or the Policy Hub, and other key partners. A matrix listing PUMA's key
partnership initiatives is maintained to track all relevant international and national sustainability
organisations, and follow up on legal requirements (e.g. UK Modern Slavery Act, new German Supply
Chain Due Diligence Act) in a timely manner.
• Implementation of an approval procedure for sustainability related product claims.
• Conducting stakeholder dialogue with NGOs and other expert organisations.
• Regular updates of PUMA policies and sustainability standards (e.g. Code of Conduct, sustainability
handbooks).
• Establishing of a functioning workers’ hotline (included in Code of Conduct) and employees’ hotline
(included in Code of Ethics).
• Enhanced industry-wide collaboration with competitors in terms of human rights and environmental
performance measurement tools, standards and certifications (e.g. Facility Environmental Module,
Social Labour Convergence Programme, Material Restricted Substances List, Leather Working Group,
Forest Stewardship Council).
• Regular internal training (for example e-learning accessible via Workday).
Net risks as outlined in the CSR Directive Implementation Act (§ 315c in relation to § 289c, section 3, number
3 German Commercial Code (HGB)), were not identified in 2023.
Further details on PUMA’s overall risk management can be found in the Risk Management section.
In 2023, as part of PUMA’s continuous review of Due Diligence policies and processes, we revised our Code
of Conduct and will publish it in 2024. We will also revise PUMA FOREVER. BETTER. Sustainability
Handbooks in 2024.
The scope of the implementation of the Code, Policies and Handbooks has been expanded, mentioning all
PUMA’s business partners within and beyond the supply chain, including business partners who represent
PUMA (such as consultants and agents), and PUMA’s own organisation.
The updates of the Code of Conduct include clarifying definitions regarding the worst forms of child labour
and the prohibition of slavery. Provisions were added regarding supply chain traceability, the use of security
forces without violating any Human Rights, provision on chemical and waste management in line with
International Conventions, as well as unlawful eviction and taking of land. We also emphasize PUMA’s
commitment to remediation of violations and similar expectations from our business partners; we also
added how workers can use PUMA hotline for any grievance.
Two new standards were added to the Code of Conduct:
• No harm when using security forces
• Respect of land rights
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To ensure that our suppliers understand the requirements set by PUMA as well as international Due
Diligence regulation and standards in the garment and footwear industry, PUMA organised multiple training
sessions in 2023 including:
• Meetings with suppliers to share updates on PUMA standards and industry best practices, elaborate on
the German Due Diligence Supply Chain Act by industry experts; CNTAC in China and VITAS in Vietnam.
• Training on Accident Prevention and Reporting with factory management, who will support us in
achieving the goal of training 100,000 workers in this area.
• Root cause analysis training for strategic suppliers.
• Customised e-learning on Social Standards, to support existing and new suppliers with understanding
PUMA's expectations.
• PUMA expectations for suppliers regarding our Code of Ethics.
Fashion Revolution works towards a vision of a fashion industry that conserves and
restores the environment and values people over growth and profit. The Fashion
Transparency Index is an annual review of 250 fashion brands and retailers ranked
according to their level of public disclosure on human rights and environmental policies,
practices and impacts in their own operations and in their supply chains.
PUMA ranks sixth out of the 250 fashion brands and retailers, our index improved from 58% in 2022 to 66%
in 2023, because of our increased public disclosure on social and environmental policies, practices and
impacts.
The Corporate Human Rights Benchmark ranks 110 of the world’s largest apparel and
extractives companies on their corporate human rights performance.
PUMA ranks fourth out of 110 companies and first in the Apparel sector of the World
Benchmarking Alliance 2023 Corporate Human Rights Benchmark, with a total score 53.4 of out of 100. We
have embedded our policy commitments to respect human rights within our operations by allocating
responsibility and resources for the day-to-day management of human rights, providing training on human
rights issues, and establishing a global due diligence system to assess, mitigate and evaluate human rights
risks and impacts.
KnowTheChain benchmarks how companies address forced labor in corporate
global supply chains to inform companies’ and investors’ decision-making and
enable companies to operate more transparent and responsible supply chains.
PUMA ranks second out of 65 companies in KnowTheChain 2023 Apparel & Footwear Benchmark. Compared
to 2021, we improved our rank by six places. This is because we disclose the percentage of migrant workers
at Tier 1 and core Tier 2 suppliers, recruitment fee remediation across four countries and responsible
recruitment training for suppliers. We also increased information disclosure on our human rights risk
assessment process. Notably, PUMA has the highest score on the theme of Traceability & Risk Assessment.
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HUMAN RIGHTS
TARGET DESCRIPTION:
• Train 100,000 direct and indirect staff on women’s empowerment
• Map subcontractors and Tier 2 suppliers
• Two hours of community engagement per FTE globally per year
Relates to United Nations Sustainable Development Goals 3, 5, 8 and 10
KPIs:
• Percentage of worker complaints resolved
• Number of factories with an A, B+, B-, C or D grade
• Number of Tier 2 suppliers and subcontractors included in our risk mapping
• Number of zero-tolerance issues prevailing at year end
• Number of employee hours spent on community engagement (KPI shared with Human Resources)
• Number of workers trained on women’s empowerment
PUMA’s sustainability policies are aligned with the United Nations’ (UN) Declaration of Human Rights, the
UN Guiding Principles (UNGPs) on Business and Human Rights, the International Labor Organization’s Core
Labor Conventions, and the ten principles of the UN Global Compact (UNGC). Observing Human Rights was
part of our first Code of Conduct developed in 1993 and has guided our business ethics ever since. It has
been the long-standing practice of PUMA to monitor our supply chain and conduct Human Rights due
diligence for our suppliers globally, including those in major production hubs, such as Vietnam, Bangladesh
and China continuously and rigorously.
HUMAN RIGHTS AT PUMA'S OWN ENTITIES
Guided by our Code of Ethics and Code of Conduct, PUMA’s company culture of diversity and inclusion puts
Human Rights at the centre of everything we do. Our commitment to employee well-being is also
documented in numerous employee awards and top-employer rankings received all over the world.
Our internal programmes to uphold Human Rights include measuring gender, nationality, and age distri-
bution among our colleagues, providing a safe work environment as well as elected worker representatives
and collective bargaining agreements at selected larger offices, such as our German headquarters. In
December 2023, PUMA appointed a Human Rights Officer to monitor PUMA’s risk management system, risk
analysis relating to human rights and compliance with Human Rights due diligence regulations. In addition,
we worked on a Human Rights Handbook for our own entities globally, to be published in 2024.
All PUMA employees who feel that ethical standards in business may have been compromised can raise
their voices. Various channels are in place to report any suspicions and/or observations related to modern
slavery or other Human Rights aspects. In practice, all employees can address their requests regarding
apparent failures to their line manager. They may also raise the matter with staff representatives, the Legal
department, the Internal Audit department, or via a toll-free external whistleblower platform available
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worldwide. Our Ethics Committees make sure that no action is taken against an employee who, in all good
faith, reports a case of failure to comply with an ethical principle of the Code of Ethics, because of having
reported the matter. In 2023, to meet its obligations under the German Act on Corporate Due Diligence
Obligations in Supply Chains (LkSG), PUMA published its Rules for the Complaint Procedure.
REFORM INITIATIVE
As REFORM continues through its fifth year of existence, our partnership with The Trevor Project (TTP)
continues to drive impact in our communities with a focus on supporting policies and practices that affirm
and protect young LGBTQ athletes. In 2021, in partnership with TTP, we sought to build a well-researched
and comprehensive training scheme to support equity in sports and promote gender inclusivity. In 2023, we
launched the Reform the Locker Room programme, furthering our reach to locker rooms, classrooms, and
offices alike.
REFORM was also able to launch a new project and collection, called Icons of Unity. Icons of Unity honors
PUMA ambassador and global Icon, Tommie Smith, and amplifies his message of Justice, Dignity, Equality
and Peace. As we continue to build out this programme, we look forward to identifying athletes, colleagues,
and community leaders who embody this characteristic of Tommie, being more than what is obvious and a
beacon for a more united community. We kicked this off with an amazing interview with Tommie and
Olympians, Felix Streng and Colin Jackson.
In 2023, we educated and preserved culture and history through our work with BLACK FIVES and its NY
RENS 100 collection launched in November with court refurbishments and street dedications. We have been
able to advocate for and amplify a message of rebuilding communities in conjunction with our partner Game
of Our Lives and football star and PUMA ambassador Oleksandr Zinchenko and his Game4Ukraine
charitable celebrity soccer match that raised large amounts of money to support the rebuilding of Ukrainian
schools. We supported the match with game balls and training gear for all participants. We also hosted a
match viewing event at our Herzo HQ with many of the Ukrainian families that have been relocated during
the time of war.
REFORM continues to show up and show out for our broader communities and remains true to our brand
vision; “…where all barriers to participation are removed so that everyone who wants to play can play.”
More on our Reform Initiative can be found here.
PUMA x BLACK FIVES collection which honours the 100th anniversary of the Harlem Rens
A panel discussion on Gidra, an Asian-American student-led newspaper created to stop the anti-Asian sentiment in 1969
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COMMUNITY ENGAGEMENT
Our goal is to reach a total number of hours spent on community engagement equal to twice our annual
average FTE (full-time equivalent). We encourage all our employees around the world to participate and
record projects and employee engagement on an online platform.
Our Community Engagement Programme has continued to create a positive impact locally by supporting
social, health and environmental causes, and we were able to donate 57,000 community hours in 2023. Since
2017, we have now recorded over 200,000 community engagement hours globally.
For more information on PUMA's employee policies and philanthropic donations please refer to the Our
People section.
Community engagement activities from PUMA Chile: Reforestation in Renca
HUMAN RIGHTS IN THE SUPPLY CHAIN
RESPONSIBLE PURCHASING PRACTICE POLICY
As a responsible business partner for our suppliers, we recognise that our business practices, and our
trading terms and conditions can have a significant impact on the organisation at our suppliers’ factories.
PUMA’s Responsible Sourcing Policy aims to reduce potential negative impacts. PUMA’s Responsible
Purchasing Practice Policy was developed in 2019 to create a framework for guiding decisions and
maintaining consistency through eight key principles:
1. Only working with suppliers that have signed a Manufacturing Agreement.
2. Payments to suppliers are made on time and in full. We only deduct payments and impose penalties
when it is lawful to do so.
3. Price paid for the product to include reasonable labour costs, such as overtime premium payments,
social insurance payments, and costs to comply with environmental standards.
4. Open production capacity must be declared by the supplier based on standard work weeks as per the
law of the relevant production country.
5. Seasonal production plans are allocated considering the negotiated capacity with the supplier.
6. Sufficient production lead time must be provided.
7. Suppliers may not subcontract production without authorisation from PUMA. All subcontracting units
should respect our Code of Conduct.
8. A minimum notice of six months must be given when ending a partnership or downscaling orders.
Longer timeframes will be granted, based on the average production capacities used in the last two to
three years, to reduce the impact on workers.
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In 2022, 280 PUMA staff and 1,145 supplier participants received Responsible Sourcing Practice training. The
training referred to the UN Guiding Principles on Business and Human Rights, to explain the link between
the purchasing practices, potential impact on working conditions, and the risk of Human Rights violations.
In 2023, as part of our Due Diligence Policy review, we added a clause on responsible disengagement into
our responsible purchasing practices. Following the Fair Labor Association guidelines, PUMA commits to
provide a minimum of six months of notice when significantly downscaling orders or terminating a business
relationship with suppliers. To mitigate impact on workers’ jobs and give suppliers time to find new buyers,
a longer timeframe shall be granted, depending on the average production capacities used over the last two
to three years.
BETTER BUYING SURVEY
In 2023 we asked 32 strategic Tier 1 suppliers (11 accessories, 12 apparel, and nine footwear suppliers
representing 69% of our business volume and 80% of our business value) to participate in the Better Buying
survey to collect feedback from our core suppliers on the implementation status of PUMA’s responsible
purchasing practices. 28 suppliers responded, and the response rate was 90.3%.
Better Buying gathers data from suppliers to provide guidance to brands for improving purchasing
practices. Brands voluntarily invite their suppliers to participate. Suppliers rate their brands anonymously
according to the five principles of responsible purchasing which focus on the buyer purchasing practices
that could have the biggest impact on suppliers’ businesses:
1. Visibility: Brands provide enough information about the planned business for suppliers to act
2. Stability: Brands give suppliers steady and predictable business across the year
3. Time: Brands provide enough time for suppliers to complete all processes
4. Financials: Brands use fair financial practices with suppliers
5. Shared Responsibility: Brands play their part in improving supply chain social and environmental
sustainability
We benchmarked our 28 suppliers' feedback with more than 800 suppliers' feedback from the 16 brands
classified under sporting goods and discussed these results internally to set a clear focus area for
improvement. PUMA’s overall score slightly increased in 2023, mainly due to the increased score on
covering cost for compliant production, accountability for delays, regular forecast updates, and order
cancellation percentage. The feedback is described below.
VISIBILITY
Design and development can play a significant role in improving supply chain sustainability. Choices made at
this stage have significantly lower financial, social, and environmental impacts. While all our samples are
based on a tech pack, tech packs have also been reviewed in 2023 to improve the accuracy of information.
PUMA has also provided internal training on the importance of providing accurate information to suppliers.
Our purchase order accuracy has improved compared to 2022. Our suppliers recognise our efforts in
increasing the use of more sustainable materials, 3D sampling, industry certification, and setting target
prices before product development. Our sample hit rate remains strong.
All our suppliers confirmed that we provide them with a business forecast, enabling them to plan the
workforce that is needed. In 2023, PUMA discussed its production capacity and the potential impact of
forecast inaccuracies on suppliers. We also provided internal training for key business departments
involved. PUMA has also been working with its suppliers to ensure their production capacity is accurate and
there has been regular feedback on sales forecast to its sales division. Although the overall score has
improved for 2023, we have identified the need to better communicate our overall forecasting and planning
timelines and processes to our suppliers and improve in-season communication for some product divisions.
Given the global macroeconomic situation in 2023, which has led to a change in customers' ordering
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behaviour, the gap between the placed and planned capacity results in unutilised capacity and excess
material increased according to our suppliers.
STABILITY
We value long term relationships with our suppliers. 40% of our suppliers have been working with PUMA for
more than ten years. To help ensure stability, as a principle, we will not cancel orders and accommodate
order placement to respond to suppliers’ difficulties such as lockdown periods. In the case of order
cancellation which remains less than 1% for PUMA, we always pay our suppliers for any liability associated
with cancellations. In 2023, 100% of suppliers from Accessories and Footwear reported no order
cancellation, while some Apparel suppliers reported cancelled orders.
TIME
A large majority of our suppliers confirmed that we have an agreed time and action calendar for pre-
production and production deadlines. In 2022 we received feedback from our suppliers that PUMA missed
some deadlines, however through better communication in 2023, our suppliers confirmed an improvement.
FINANCIAL
Most suppliers feel they have favourable financial terms through digital payment, the FOREVER. BETTER.
Vendor Financing Programme and through receiving payment for samples and bulk production in a timely
manner. PUMA International Trading and the vendors have enabled the digitisation of the supply chain
creating transparency, operational efficiency, and reducing complexity. For example, all payments to
vendors are automated and paper-free.
We do not apply late penalties to our vendors, and suppliers confirmed we are flexible and accountable for
delays. We will strengthen our communication of payment terms to suppliers. We also see opportunities to
collaborate with our suppliers to increase their production efficiency related to style allocation, volume,
standardisation of fabrics, labelling and packaging processes, etc. We made significant improvements in
covering costs for compliant production compared to 2022, but suppliers also reported pressure in cost
negotiation in 2023. Our suppliers also recognised our efforts to reduce audit duplication which benefits
them in saving cost.
SHARED RESPONSIBILITY
All our suppliers recognise that sustainability is the precondition for doing business with PUMA. However, in
2023, suppliers felt less incentivised to reach the sustainability goals compared to 2022 since we saw a
decline in orders in the first half of the year and stabilisation during the second half. The majority of our
suppliers acknowledge our effort to enforce our sustainability standards.
FOREVER. BETTER. VENDOR FINANCING PROGRAMME
The programme, established in 2016, allows suppliers with a good or very good compliance rating to benefit
from PUMA’s high credit rating and preferred interest rates. The programme runs in partnership with IFC,
BNP Paribas, HSBC, and Standard Chartered Bank.
At the end of 2023, 72 vendors were registered users (compared to 71 at the end of 2022). The financed
volumes in the full year 2023 amounted to 478million(− 322 million compared to 2022), which reflects the
massive interest rate and with this financing cost increases for our suppliers, who chose other sources or
tried to avoid external financing.
HUMAN RIGHTS RISK ASSESSMENT
In previous years we have conducted Human Rights risk assessments at corporate and the supply chain
level and shared the results in our 2016 and 2017 Annual Reports. In 2021 we commissioned and completed a
Human Rights risk assessment, focusing on forced labour management in the supply chain.
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In our Handbooks, we request our vendors to conduct due diligence. To increase transparency, we report on
the most common audit findings, training, grievances, and mitigation measures as outcome-focused key
performance indicators (KPIs) to track the effectiveness of our supplier programmes.
The PUMA hotline is accessible to Civil Society Organisations (CSOs) and external stakeholders, including
stakeholders representing vulnerable groups: women, children, migrant workers, indigenous people and
national or ethnic, religious, and linguistic minorities. We also extend the scope of our social monitoring
programmes to EMEA factories, high-risk countries warehouses, and to some non-core Tier 2 suppliers.
In 2023, we conducted a review of our grievance mechanism, in line with the UNGP criteria for operational-
level grievance systems. To do this, we surveyed 14,823 workers at 45 factories in eight countries. The
legitimacy of the PUMA hotline was acknowledged by 94% of workers, accessibility confirmed by 80% of
participants together with 92% regarding the hotline's availability in a language they understand.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively. Please refer to the Due Diligence and Risk Assessment section of this report for
more information.
RISKS
The most salient risks to human rights are forced or bonded labour in the supply chain and, at the farm
level, child labour.
Freedom of association
As per World Governance Indicators (WGI), PUMA’s main sourcing countries have been identified as risk
countries on the Voice and Accountability indicator, which measures freedom of association. Social conflict
and freedom of association breaches could be a risk due to a lack of social dialogue at factories. The risk
could be more upstream in our supply chain when no audit programme is in place or when there is no
monitoring programme at the raw material extraction stage. We support our core Tier 1 suppliers to set up
effective social dialogue platforms in factories and adopt certification such as Better Cotton and the Forest
Stewardship Council to address raw material extraction Human Rights risks.
ILO Freedom of Association Committee has been investigating cases reported by International Trade
Unions on allegations of retaliation, anti-union discrimination and dismissals, and the arrest and detention
of workers for having participated in strike action, in a context where the legislative framework inadequately
ensures the effective recognition of freedom of association, in Bangladesh and Cambodia.
In Bangladesh and Cambodia, there were third-party complaints related to freedom of association
(described in the grievance section). As a countermeasure, all our factories in Bangladesh and Cambodia
are enrolled in the ILO Better Work programme, which provides advisory services and supports factory
management to create a participation committee as a platform for social dialogue.
Discrimination, sexual harassment, and gender-based violence
The Global Gender Gap Index measures gender equality in 153 countries by tracking and ranking a range of
gender-based gaps across society. East Asia is ranked as medium, while South Asia is ranked lower. While
East Asia has been able to reduce educational gender gaps, South Asia is one of the regions where women
are the most disadvantaged in the workplace.
Social dialogue can be used as an effective tool to overcome the under-representation of women and
promote gender equality at work. We support our core suppliers in setting up effective social dialogue
platforms in factories that include women's voices. We also support them in conducting women
empowerment training for factory workers.
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Health and Safety
South East Asia is prone to natural disasters, disease outbreaks, and health risks related to climate change.
In addition, building and fire safety risks have been identified as major risks in the apparel sector, especially
in Tier 1 and Tier 2 facilities. One of the World Health Organization’s key priorities is to strengthen
emergency risk management for sustainable development and to promote health coverage and robust
health systems.
We maintain a high focus on the OHS performance of our core Tier 1 and Tier 2 factories through factory
injury rate monitoring and OHS risk assessment training.
Wage and benefits, living wage, and working hours
Asian sourcing countries have been rated with low scores by the ITUC Global Rights Index.
We support our core Tier 1 factories, with which we have direct business relationships, to provide a fair
income for to their workforce, including all legal wages and benefits along with additional components
which could increase workers' incomes according to fair wage assessments. We launch fair wage
assessments and remediation in collaboration with the Fair Wage Network, for factories which fall short of
paying a living wage and continue benchmarking all our core Tier 1 wage data through the Fair Labor
Association (FLA) wage dashboard.
We also conduct training on root cause analysis to strengthen working hours management at our core Tier 1
factories, so the level of workers’ income depends less on overtime hours workers.
Child and forced labour
As per World Governance Indicators (WGI), PUMA’s main sourcing countries have been identified as risk
countries on Regulatory Quality (RQ) and Rule of Law (RL). The risk could be more upstream in our supply
chain when no audit programme is in place or when there is no monitoring programme at the raw material
extraction stage. We adopt certification to address raw material extraction and Human Rights risks such as
Better Cotton and the Forest Stewardship Council.
In 2021, we conducted a risk assessment on forced labour management through a third party and have
prioritised the traceability of our supply chain as a key focus. In addition, PUMA reviewed the severity
grading of audit findings according to ILO 11 forced labour indicators to prioritize the remediation process.
RISK ASSESSMENT FOR NEW FACTORIES
EiQ is a risk assessment tool for new and existing suppliers. The EiQ Sentinel service scans online and
media sources and provides alerts for supplier controversies relating to labour, health and safety, the
environment, business ethics and management systems. Sentinel alerts provide near-real-time monitoring
of supply chains from public news and information sources (in English and local languages), including local
or international media, NGO reports, government reports, worker allegations and social media platforms.
PUMA checks the EIQ Sentinel whenever it onboards a new factory. For China, we also use the IPE
database to check if any of the new factories have a record of environmental violations. We would then
ensure that factories comply with PUMA standards though a social audit. In 2023, one factory was not
onboarded due to two Sentinel alerts related to potential risks of forced labour.
IPE violations were found in three other factories. One factory was onboarded after it improved as per PUMA
standards and corrected its excessive daily wastewater discharge. The second factory improved and passed
the legally required environmental assessment but could not be onboarded in 2023 since we had not
conducted our social audit, it will be done in 2024. The third factory started production before going through
the legally required environmental assessment and without the approval of the local authorities; they
improved, so these violations were removed from the IPE database, but they could not be onboarded since
we had not completed our social audit within 2023.
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For PUMA’s existing supplier factories, 15 Sentinel cases were found as of September 2023. Eight cases
were from factories that had already been deactivated, and thus have no production for PUMA anymore. Five
cases were related to insufficient payments, health and safety, and waste management, which were
addressed through remediation action and the issues were resolved. The other two cases involve allegations
that have not been confirmed by our investigations.
RISK ASSESSMENT FOR EXISTING FACTORIES
In 2021, PUMA adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by country, commodity and issue
• Complete risk assessments for suppliers, factories, and sites
• Manage risks that are material to each supplier, factory or site
In 2023, we uploaded 676 audit results (2021-2022) to the EiQ tool. This tool shows the combined risk level
based on geography, product, and audit result. We evaluated the countermeasures we have in place in the
factories identified as high-risk facilities in this tool. 28 factories were identified as high-risk mainly due to
legal violations such as missing building safety permits, systematic excessive overtime or working hours
management. 16 factories are from Tier 1 suppliers, one is a warehouse, and 11 are Tier 2 factories. All of
them are under regular social compliance monitoring. 29% (eight) of these factories are under the ILO
Better Work Programme which offers a factory assessment and advisory services for remediation, 21%
(six) of these factories are covered by Worker Voice mobile app, through which workers can raise their
concerns to factory management (such concerns are escalated to PUMA when factories do not respond
timeously). This mobile app has also the functions to conduct workers survey and launch e-learnings for
workers. We also provided Root Causes Analysis training for 25% (seven) of the factories. One supplier in
China has been going through a capacity building programme since 2022 at PUMA’s expense to strengthen
its management system. In 2023 we saw a significant improvement as per the consultant company Elevate,
which we further explained as a case study.
In 2023, 75% (21 out of 28) of factories improved. Measures included obtaining building safety or fire safety
certificates, installing sufficient fire safety equipment, and ensuring that emergency exits were
unobstructed. Some factories improved working hours management after they joined the Root Cause
Analysis training that we provided or paid back insufficient overtime compensation. As a result, these 21
factories are no longer considered as high-risk. The four other factories are still implementing their
improvement plan and working to obtain legally mandated certificates and improve working hours
management. Three out of four factories have already joined ILO Better Work; for the one factory which is
outside of scope of ILO Better Work, we expect them to remedy the critical violations by 2024. The other
three factories are to be deactivated.
In 2023, PUMA’s Supply Chain Sustainability Team added one full-time staff member in Brazil. We now have
local team members in nearly all high-risk sourcing countries to support the implementation of our
standards. In Pakistan, with the launch of the Better Work programme, we have registered all factories in
scope to mitigate risks. We plan to add one full-time staff member to support Bangladesh and Pakistan in
2024. For the rest of the high-risk countries such as the Philippines, Mexico, or South Africa, we do not have
a local team member due to the total number of suppliers being less than ten. For these locations, we
work with third-party auditing firms to conduct regular social compliance audits.
Based on all these actions, we aim to mitigate the risks identified through this risk assessment.
WORKERS SURVEY
In 2020, PUMA launched the Worker Survey Programme to get workers’ feedback in eight countries and to
assess their satisfaction with the factory work environment through a mobile survey app.
PUMA operates multiple worker voice channels. The third-party worker engagement platforms cover 89
suppliers and 201,579 workers. 29 non-strategic factories in three countries (Bangladesh, Vietnam and
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China) also used the platforms in 2023. To review the design and efficiency of PUMA’s grievance system as
per the criteria of the UN Guiding Principles on Business and Human Rights, we collected feedback
from factory workers in 2023.
The UN Guiding Principles on Business and Human Rights set the following criteria to assess the
effectiveness of non-judicial operational-level grievance mechanisms: legitimacy, accessibility,
predictability, equitability, transparency, rights-compatibility, a source of continuous learning, and based on
engagement and dialogue. In 2023, to assess our hotline against these criteria, we surveyed 14,823 workers
at 45 factories in China, Cambodia, Vietnam, Indonesia, the Philippines, Turkey, Pakistan and Brazil.
• Legitimacy (enabling trust from the hotline users): 94% of workers agreed they can trust the PUMA hotline
• Accessibility (no barrier to access for users): 80% of workers know where to find the PUMA hotline
phone numbers and email, and 92% confirmed it is available in a language they understand
• Predictability (users are clear on the procedure): 75% of workers responded that they know what the
complaint procedure is and 90% understand their complaint will be investigated
• Transparency (keeping parties informed about progress on the issue): 91% of workers with unresolved
complaints (at the time they responded to the survey) said they were aware of the status of their cases
The Rights-compatibility criteria (ensuring that outcomes and remedies accord with internationally
recognised human rights) was not evaluated. We shall assess it in the future.
The survey results also showed that workers in Brazilian factories did not know where to find the PUMA
hotline, nor did they understand the procedure (only 25% responded positive). As a follow-up action, we will
conduct further training for workers in Brazil about our grievance mechanism and translate our video
material that explains the PUMA hotline procedure into Portuguese in 2024.
Lastly, to evaluate the effectiveness of remedial action, workers were asked systematically whether their
complaints were resolved. Of the 15% of surveyed workers who had used the hotline, 65% said they had filed
a complaint, with a complaint resolution rate of 96%.
↗ T.04 HOTLINE WORKER SURVEY - 2023
China
Cambodia
Vietnam
Indonesia
Philippines
Turkey
Pakistan
Brazil
Global
Can you access a
phone in order to call the
hotline?
76%
93%
94%
74%
92%
82%
97%
66%
86%
Do you have access to a
phone or computer to
send a complaint via
email?
57%
94%
92%
83%
92%
85%
97%
77%
82%
Can you use Zalo,
WeChat, Viber, QQ,
Whatsapp etc?
87%
96%
97%
99%
92%
97%
99%
83%
94%
Is the hotline available in
a language you
understand?
92%
88%
94%
93%
98%
87%
98%
89%
92%
PUMA’s hotline processes and complaints' numbers, statuses and outcomes are publicly available for
transparency. Our Rules for the Complaint Procedure is available for download on our website and details
about workers and third-party complaints are shared in our Annual Reports. Through regular evaluation of
our grievance mechanism, including feedback from factories' workers, we aim to collect information to
support continuous improvement of our due diligence and grievance mechanism procedure, in line with
these criteria that the mechanism should be a source of continuous learning and based on engagement and
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dialogue. For equitability, we are seeking to ensure that complainants can access a network of public and
private organisations or services to engage through the PUMA hotline on fair, informed and respectful
terms. In 2024, we plan to map local relevant organisations and institutions together with our suppliers, to
identify and share contacts of emergency care, psychological support or the judicial system, for any factory
worker in need who has raised a complaint.
↗ T.05 WORKER SURVEY 2021 – 2023
1
Year
Number of Factories
Number of Workers
2021
48
13,557
2022
68
21,526
2023
45
14,823
1
From 2021 onwards we have used Gallup’s methodology to define the sample of production workers of each factory, based on
a 95% confidence interval and a margin of error of plus or minus 5%.
WOMEN’S EMPOWERMENT
Training women about their rights and empowering them to advance their careers is key to achieving
gender equality, where both men and women have equal power and opportunities for education, healthcare,
economic participation and personal development.
60% of workers producing PUMA goods are women and 50% of factory managerial positions at our core Tier 1
suppliers are filled by women. PUMA initiatives support suppliers in reviewing existing policies and practices
or establishing new ones for women’s empowerment. We believe that collaboration within the industry and
with NGO experts in women’s empowerment is key to avoid duplication and provide the right expertise.
Since 2021, the accumulated participants of sexual harassment prevention training amounts to 222,933
workers, accounting for more than 148,642 training hours.
In 2023, we expanded the e-learning course on Sexual Harassment Prevention at the Workplace via Micro
Benefits to 50,478 workers in 37 factories in China and Vietnam. Another 4,418 workers at eight factories in
Cambodia and Indonesia completed the Better Work e-learning course on Discrimination and Elimination of
Violence and Harassment at Work via the mobile phone app WOVO, covering 51% of employees in these
factories.
China’s textile and apparel industry employs approximately 20 million people, over 60% of them female,
comprising many domestic migrants at the age of marriage, childbirth, or childcare. These workers have
limited education in personal development, childbirth and family care, and often must juggle their work at
the same time. Therefore, the China National Textile and Apparel Council (CNTAC) has launched the
initiative to build Family-Friendly Factories in the Chinese textile and apparel industry. This initiative is
supported by UN Women and UNICEF. In 2023, we partnered with CNTAC, piloting the Family-Friendly
Factories project at three core Tier 1 factories with 5,566 workers in total.
The programme’s objectives are:
• Understand how Chinese textile and apparel companies implement family-friendly policies, as well as
their challenges in implementing a gender equality system
• Develop guidance for these companies to promote family-friendly policies at the workplace
• Assist pilot companies in establishing family-friendly mechanisms in line with their existing human
resources management system
• Promote and pilot best practices across the industry
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In 2023, CNTAC conducted an onsite baseline assessment at three PUMA factories through workers surveys
and interviews about their perception of their factory’s current policies and practices, and their challenges
regarding family care. The project team also trained 207 workers (73% female) on gender equality, family-
friendly policies, work-life balance, and parent-child education. The three factories were provided with an
improvement plan to review their internal policies. PUMA’s Sustainability Team is working closely with them
to implement these improvement plans by the end of 2024.
PUMA encourages suppliers to join the ILO Better Work programme. The Better Work’s factory
improvement process includes three integrated services: assessments, follow-up advisory services and 15
training days per year. In 2023, 32 management staff (72% female participants), from 17 factories in
Bangladesh, Cambodia, Indonesia and Vietnam joined 19 training sessions on topics including gender
equality, sexual harassment and prevention of discrimination and gender.
The World Benchmarking Alliance (WBA) Gender Benchmark evaluates 112 of
the largest apparel, food and agriculture companies globally on their
responsibility to drive and promote gender equality in their entire value chain.
In the 2023 Gender Benchmark PUMA ranked eighth out of 112 companies and
sixth in the apparel sector with a score of 43.5 out of 100. 2023 was the first
time PUMA participated in the Gender Benchmark.
SUPPLIER SCORECARD
In 2023, PUMA conducted calls with 58 core Tier 1 factories to review the social scorecards for each of their
factories performance as of end of 2022, which included:
• Audit rating
• Participation in supplementary worker voice tools offered by third parties
• Workers’ training on women’s empowerment/sexual harassment
• Factory's injury rate compared to PUMA core Tier 1 factories’ average rate and 2023 goals
• Factory's average weekly overtime hours vs. PUMA core Tier 1 factories’ average
• Factory’s fair wage performance compared to living wage benchmark
• Whether the factory has freely elected worker representatives against 2025 goals
During these meetings, we reviewed the scorecard and discussed next steps to address identified gaps.
Most suppliers agreed with the scorecard and the action plan to achieve PUMA’s 2025 sustainability targets:
• Worker voice: 57 out of 58 factories are covered by third-party worker voice platforms (mobile app) and
one supplier in Brazil was added to PUMA’s 2023 strategic partner list. We discussed launching a third-
party worker engagement platform. Some suppliers shared their concerns about the functionality
of third-party worker engagement platforms, we are looking into it to further improve or find an
alternative.
• Fair wage: The discussion was based on the factories 2021 wage data; three factories were suggested to
conduct a Fair Wage Assessment as their wage level is below the industry or GLWC benchmark, which
was conducted in 2023.
• Women’s empowerment: Except for our new strategic supplier in Brazil, the rest of our core suppliers
provided sexual harassment prevention training to workers after the managerial staff had been trained
by PUMA. In 2023, 41 out of 58 factories continued the sexual harassment e-learning via the third-party
worker engagement platforms, and three Chinese factories joined a pilot led by CNTAC on promoting
gender equity.
• Worker representation: During these meetings, we encouraged 20 factories which had not freely elected
workers’ representatives, to either join the ILO Better Work programme, which help suppliers to set up a
Worker-Management Committee or join PUMA’s programme when the factory is not under the scope of
Better Work. Four of them joined the Better Work programme in 2023 or will join in 2024. In 2023,
PUMA’s Sustainability Team members in China, Vietnam, Bangladesh and Indonesia had been trained by
Timeline Consultancy, a China-based consultancy company, on guiding factories not in scope of the
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Better Work programme to have freely elected worker representatives and to build a dialogue
mechanism. The 16 factories agreed to join PUMA’s Worker Representation Programme.
SOCIAL COMPLIANCE
PUMA’s Code of Conduct is an integral part of our supply contracts. All PUMA suppliers sign a legally
binding “Declaration of Principles” to comply with the PUMA Code of Conduct. PUMA requires all vendors,
their subcontractors, and their suppliers to comply with this Code of Conduct, as well as PUMA’s Social and
OHS handbooks. These compliance expectations are verified through regular audits. The frequency of audits
is based on a factory’s previous audit results: A-graded factories are re-audited after 24 months, B+ after
18 months, B- after 12 months and C-graded after six months. Warehouses graded A, B+, B- are re-audited
after 24 months, C-grade after 12 months and D after six months. For factories with a D grade, including
Better Work Factories, Zero Tolerance (ZT) issues need to be corrected between two and six months.
Potential new factories will not be authorised to produce PUMA products until the factory can be rated
A or B. Regardless of the factory grade, all issues identified during audits need to be remediated as part of a
corrective action plan.
Since 1999, all direct PUMA factories (Tier 1) have been frequently audited for compliance with the ILO Core
Conventions and basic environmental standards. Each year we collect between 300 and 500 audits or
assessment reports issued through PUMA’s compliance programme, the ILO Better Work Programme, our
industry peers’ compliance programmes or independent experts accredited by the Social and Labour
Convergence Programme (SLCP). We have also included our most relevant material and component
suppliers (Tier 2) and key priority warehouses in our audit programme. Through collaborative efforts with
the sourcing team, we mapped more than 200 non-core Tier 2 suppliers in 2022. While one-third use FEM
(Facility Environmental Module) for other brands, only 13 have had a social audit. We converted these audit
reports in our grading system. In 2023, we reminded all suppliers that the use of undeclared sub-
contractors is a Zero Tolerance issue, as per PUMA standards. We asked them to self-declare their Tier 1
subcontractors used for PUMA production. 66 Tier 1 subcontractors were declared, 26 (19 for the first time)
had an audit report that we converted into PUMA‘s grading system.
In 2023, 454 Tier 1 suppliers, 92 Tier 2 suppliers and three warehouses were audited. 581 audit reports from
these 549 factories were collected to safeguard workers’ rights to more than half a million workers
(656,473).
All PUMA suppliers are required to display our Code of Conduct in factories producing PUMA products,
materials or components. This contains the contact details of the PUMA Sustainability Team as a whistle-
blower hotline. The number of grievances received and solved, as well as the most frequent type of
grievances are shared in this report.
Furthermore, PUMA is a member of the Fair Labor Association, which regularly audits and accredits
PUMA’s compliance programme for compliance with the Fair Labor Association’s Code of Conduct. This
ensures that PUMA has the systems and procedures in place to successfully uphold fair labour standards
throughout its supply chains and mitigate and remediate violations. As an FLA member, PUMA has agreed
to subject our supply chain to independent assessments and monitoring as part of an organisational
commitment to upholding fair labour standards through transparency. FLA publishes the results of these
assessments to encourage an open and honest dialogue about the conditions that workers face, ensure
PUMA’s accountability, and help consumers make more informed decisions about the products they buy.
View the public assessment results here: PUMA, SE – Fair Labor Association.
A comprehensive explanation of our compliance programme for suppliers (including grievance mechanisms
and case studies) can be found in our Sustainability Handbook for Social Standards. Our Social Handbook
explains the procedure for factory monitoring programmes (section 3) and our standards. This handbook is
reviewed on a regular basis and our suppliers receive regular training on our standards and monitoring
process. We launched the e-learning via Elevate’s EiQ Learning platform in April 2023. All suppliers were
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65
invited to complete the training course. 1,035 participants from 557 factories passed the e-learning in 2023,
representing 85% of PUMA’s active factories.
PUMA’s supplier factory list is disclosed on our website. It includes details such as the factory name,
address, product category, headcount range, the percentage of female workers, percentage of foreign
migrant workers and freely elected worker representation. PUMA also publishes its factory list in the Open
Supply Hub platform.
AUDIT PROCESS
Our audit starts with briefing the factory management and worker or union representatives on PUMA
standards, the audit process and its scope. In 2023, 94% of the audits conducted included a trade union
representative or workers’ representative during the audit’s opening and closing meetings (when closing
meetings take place during factory working hours).
We have a team of compliance experts in all our major sourcing regions who regularly visit our core
manufacturing partners. We work with external compliance auditors and with the ILO’s Better Work
Programme. Each PUMA supplier factory must undergo a regular compliance audit every six to 24 months
based on their audit rating and all issues identified need to be remedied as part of a corrective action plan.
Interviews with workers, workers’ representatives or union representatives are crucial for understanding
workers’ perspectives on workplace standards, the atmosphere at factories and protecting vulnerable
workers from any work that is likely to cause harm. All interviews with workers are conducted on-site (no
offsite interviews).
Around 79% of active factories were audited in 2023. Factories not audited in 2023 either had an audit that was
still valid because of their grading, were waiting for Better Work assessment or were located in Ukraine.
To avoid duplication and prevent auditing fatigue, in 2023, we increased the percentage of shared
assessments to 67% (59% in 2022). We will further increase our use of SLCP-based assessments
to 350 factories in 2024. We believe that SLCP is an ideal tool for building long-term relationships with
suppliers and supporting them to take ownership of their social and labour data. PUMA is a member of the
ILO Better Work Programme and uses Better Work assessment reports in lieu of the PUMA compliance
programme. PUMA also uses FLA-accredited brands' reports as well as some other brands’ audit reports in
lieu of the PUMA compliance programme. We aim to use external reports converted to PUMA standards for
up to 80% of our factories by the end of 2025.
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↗ T.06 AUDIT RESULTS 2021 – 2023
2023
2022
2021
T1
T2
Warehouse
T1
T2
Warehouse
T1
T2 Warehouse
A (Pass)
120
24
63
17
75
6
B+ (Pass)
154
27
1
157
41
144
23
2
B- (Pass)
152
38
2
144
39
2
155
46
1
C (Fail)
18
2
19
11
1
16
7
D (Fail)
10
1
9
4
3
2
Total Active+Inactive
audited factories
454
92
3
392
112
6
392
82
3
Total active factories as of
Dec 31st, 2023
564
120
7
516
128
10
445
99
6
Number of employees
572,541
81,756
2,176 546,286
82,070
2,229
Audit coverage %
80%
77%
43%
76%
88%
60%
88%
83%
50%
Total active+inactive
audited factories
549
510
477
Pass/Fail %
94/6
97/3
100
93/7
87/13
33/67
95/5
91/9
100
↗ G.07 AUDIT RESULTS 2021 – 2023
1
1
Total factories audited: 477 in 2021; 510 in 2022; 549 in 2023
16.6%
35.8%
42.3%
4.8%
0.4%
15.7%
38.8%
36.3%
6.3%
2.9%
26.2%
33.2%
35.0%
3.6%
2.0%
A
B+
B-
C
D
2021
2022
2023
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AUDIT RESULTS AND FINDINGS
In 2023, we continued following up and training the factories with low performance; as a result, 67 factories
were upgraded to A or B+. 144 factories were audited for the first time in 2023 as per our strategy to
increase local-for-local production and to scale up our social monitoring programme to non-core Tier
2 suppliers (11) and Tier 1 sub-contractors (19).
In total, 36 factories failed the audit, (31 Tier 1, five Tier 2); 14 were deactivated due to low performance. Five
were re-audited in 2023 and passed the audit; 17 factories will be re-audited in 2024 since they have six
months to improve. 19 out of 36 were new factories, 12 factories were not onboarded so we did not enter into
any business relationship with them, four were re-audited and improved to a passing grade, the three other
factories (two non-core Tier 2, one retail furniture supplier) were audited for the first time in 2023 as we
expanded our audit scope; they all committed to improve and they will be re-audited in 2024.
Out of the 11 factories graded D in 2023, seven factories were deactivated. Four are still active as at the end
of 2023, as progress is on-going. Two out of these four D-graded factories had Zero Tolerance issues on
transparency and payment below minimum wage which were uncovered in late 2023. They corrected these
issues within 2023, as one paid back minimum wages. The other factory stopped subcontracting home
workers, recruited workers and communicated their policy change to all managerial staff and workers;
several critical issues are still under remediation and should be corrected in 2024. For the other two D-
graded factories, since the factory management submitted reliable corrective action plans, we will follow up
on the remediation by mid-2024.
↗ G.08 2022-2023 NUMBER OF MOST FREQUENT FINDINGS
1-2
1
Top 10 findings in 2023 active factories only excluding newly audited factories in 2022 and 2023
2
Including converted reports
G.08 shows the 10 most frequent audit findings from PUMA’s audit programme, including both own and
external converted reports.
Initial assessments are excluded from this graph. 144 audits were initial assessments (meaning no audit
was conducted previously) in 2023, 25% of the total number of audits performed over the course of the year.
These suppliers are not yet familiar with our standards. In 2023, we provided an e-learning on our social
91
48
57
64
24
11
7
5
3
20
87
65
59
46
26
9
9
9
9
8
2023
2022
PUMA Annual Report 2023
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standards, which helped newly onboarded suppliers to better understand our expectations. As a result, the
pass rate of newly onboarded suppliers in 2023 was 4% higher than in 2022 (2023: 87%; 2022: 83%).
Working hours management: In 2022 we provided working hours management training for all Tier 1
factories. A root cause analysis workshop was held with selected core suppliers in both 2022 and 2023 to
explore opportunities for improvement. Factory management reviewed and strengthened their policy and
working hours monitoring system. They gained a deep understanding of how to conduct a root
cause analysis. We developed an action plan to address prioritised root causes of overtime hours. We
noticed improvements as there was a decrease in the number of audit findings in systematic excessive
overtime (reduced by 4.6%), overtime compensation (reduced by 3.2%), and working hours management
(reduced by 0.6%). We notice a decrease in the average overtime hours at our core Tier 1 factories compared
to 2022 from 7.7 to 5.3 hours in 2023, but it can be due to a decrease of our order book due to 2023 global
macroeconomic situation, which led to a change in customers' ordering behaviour.
Wages and overtime: Among issues related to wages and/or overtime, 31% of the corrective actions were
implemented and these issues were resolved in 2023, which is 20% higher than the 11% rate in 2022. We
expect more progress in 2024 as 31% of audits were conducted at the end of 2023, these factories involved
will receive a follow-up audit in 2024 to validate their improvements.
Social security: 100% of workers are covered under social security among all our core Tier 1 suppliers,
except in China where this is the case for 80.4% of workers. We plan to further explore how to support
suppliers to remedy those issues via in-person workshops in 2024. Improving working hours management,
following up with suppliers to obtain legal permits, and increasing social security coverage will continue to
be a focus of our efforts.
Transparency: Four transparency issues were found in 2023. One new factory with one transparency issue
along with other violations such as insufficient benefits and several OHS findings was not onboarded as a
PUMA supplier; two factories with one transparency issue each provided consistent records for review after
we emphasised PUMA’s zero tolerance policy on transparency. These records were verified by PUMA. One
transparency issue in one factory detected in late 2023 remains open; we will follow up in early 2024.
Freedom of association: The four open issues related to Freedom of association identified in 2022 were all
closed through follow-up with the management or under the Better Work programme. Five audit findings
related to Freedom of Association breaches were identified in 2023, such as the dismissal or poor treatment
of union members and delayed union elections. As of today, three issues were closed; one is still open
as there is an on-going mediation process between the management and trade union workers; the other
issue remains open, and concerns the factory HR manager taking dual leadership roles in
both management and union. This factory is working with Better Work Vietnam for remediation.
Women’s rights: PUMA is committed to respecting women’s rights as per the Convention on the Elimination
of Discrimination Against Women and expects suppliers to commit to and respect women’s rights. In this
context, we carefully monitor working conditions for women. In 2023, we identified 38 women-related audit
findings about missing benefits for nursing workers, unadopted conditions for pregnant workers or toilets
not maintained in clean and sanitary conditions. 15 of them were closed through follow-up with the factories
or via the Better Work programme, three findings will not be followed-up on because the factories
have been deactivated, 20 are still under remediation and are being followed-up. One violation was related
to unvoluntary overtime and has been corrected as per a Better Work progress report.
Freedom of movement: One audit finding was identified related to restricted freedom of movement. As a
result, the factory management issued warning letters to all relevant supervisors and conducted training to
avoid similar situations in future. We will verify these actions onsite in 2024. No case was found related to
workers' passports nor other identity and personal documents being retained.
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Wage payments: We identified 16 violations regarding delayed wage payments, 12 of them were closed; two
findings will not be followed-up because the factories were deactivated; for the two open findings, one
factory is working with Better Work on remediation, and another factory took appropriate actions so no
wage payments will be delayed. We will verify that proper actions were taken on-site in 2024.
Beyond auditing, we track social key performance indicators such as average payments vs. minimum wage
payments, overtime hours or coverage by collective bargaining agreements. This data is reported
under the Fair Income target section.
SUPPLIER TRAINING
To ensure that our suppliers understand the requirements set by PUMA as well as international due
diligence regulation and standards in the garment and footwear industry, PUMA organised multiple training
sessions in 2023, including:
• In-person or virtual suppliers round tables to share updates on PUMA standards and industry
best practices, elaborate on the German Due Diligence Supply Chain Act by industry experts; CNTAC in
China and VITAS in Vietnam.
• Training factory management on Accident Prevention and Reporting, who will then support us to achieve
the goal of training 100,000 workers on this subject.
• Root cause analysis training for strategic suppliers, so that they can develop corrective actions to resolve
their audit findings by addressing their root causes.
• Customised e-learning on Social Standards, to help suppliers, especially those newly onboarded, to
better understand PUMA's expectations.
• PUMA’s expectations to suppliers regarding our Code of Ethics.
We launched the e-learning via Elevate’s EiQ Learn platform in April 2023, and all suppliers were invited to
complete the training. 1,035 participants from 557 factories passed the e-learning in 2023, representing 85%
of PUMA’s active factories. We plan to add this e-learning to PUMA’s website, which will allow users, new
factories and workers, to access the course at any time.
↗ T.07 SUPPLIER TRAINING
Meeting
Topics
Number of
factories
% of suppliers
trained*
Number of
participants
Supplier in-person round table or
virtual meetings
Sustainability updates,
best practices sharing, German
Supply Chain Act. etc.
Average. 532
per round
(2 rounds)
81%
Average.
1,122 per
round
(2 rounds)
Code of Ethics**
536
82%
1,230
OHS Accident Prevention and
Reporting training
Training of Trainer to core Tier
1 supplier management on what
and how to do OHS Accident
Prevention and Reporting
102
16%
290
Root Cause Analysis training
In depth review of root
cause analysis methodology to new
core Tier 1 and core Tier 2 factories
71
11%
169
PUMA Social Standards e-learning
PUMA social standard handbook e-
learning course via EiQ Learn
platform to active factories’
management
557
85%
1,035
*
% of factories joined the training based on total 656 factories. The 656 factories include PUMA core Tier 1 and Tier 2, non-
core Tier 1, stichd factories and licensee factories.
** Included to second supplier in-person round table or virtual meetings.
PUMA Annual Report 2023
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70
↗ CASE STUDIES
Capacity Building in China
With Elevate as a partner, a one-year capacity building programme was carried out to help the
supplier and its factory staff to identify key gaps in the factory’s management system and provide
them with a toolkit and expertise to drive sustainability-related improvements. Through top
management commitment, training and capacity building, regular review of metrics and impact
assessments, the factory understood the importance of being transparent with PUMA; established a
proper grievance mechanism, established an effective working time recording system; started to use
internal inspection tools to manage CSR performance independently and corrected most (91.7%) of
the EHS findings.
To further improve it was recommended that the factory should enhance compensation and benefits
payment systems, conduct follow-up investigations of workers’ suggestions and have a proper
mechanism to answer these suggestions.
GRIEVANCE CHANNELS
PUMA works towards providing access to functioning grievance channels throughout its supply chain.
Where we do not have direct operations, we seek out partners who can run such complaints mechanisms,
according to the UN Guiding Principles. At the cotton farm level, the Better Cotton Grievance procedure
provides a system for anyone, including third parties, who engages with its activities, people or programmes
to raise a complaint relating to any aspect of Better Cotton and its activities.
We operate multiple worker voice channels to reach more than half a million workers at our Tier 1 and core
Tier 2 factories. If workers are not satisfied with the responses offered by the factories via their respective
internal grievance system, we encourage them to use the PUMA hotline to raise complaints or request
consultations. Hotline contact details are published on our Code of Conduct posters, displayed at every
audited factory globally. We also use WeChat, Zalo, Facebook and other social media channels to connect
with workers and have established more formalised compliance and human resources apps at selected core
suppliers.
The third-party worker engagement platforms cover 89 factories (201,579 workers), which represents more
than 80% of our production volume. In 2023, 1,544 feedback messages were received through the
MicroBenefits and the WOVO platforms in China, Indonesia, Pakistan, Philippines, Turkey, Cambodia and
Vietnam, as well as the Amader Kotha Helpline in Bangladesh. Of the 1,544 messages, 41 cases were
escalated to PUMA as the factory did not respond within the 48-hour timeline. PUMA engaged with the
factories’ management to address workers’ concerns. All other concerns not escalated to PUMA were
handled and resolved directly by the suppliers.
In 2023, we engaged with a local hotline, Hamari Awaz who will provide all workers in factories producing
for PUMA in Pakistan with access to a local hotline in early 2024.
In 2023, 107 workers’ concerns were raised through PUMA’s hotline across eight countries. Together with
our suppliers, our team was able to resolve all these cases.
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In 2023, to meet its obligations under the German Act on Corporate Due Diligence Obligations in Supply
Chains (LkSG), PUMA published its Rules for the Complaint Procedure. PUMA’s own employees and the
employees of PUMA’s business partners can submit complaints in connection with human rights or
environmental risks and violations, as well as violations of PUMA policies via the following channels:
• PUMA’s electronic whistleblowing platform
• Telephone numbers of the PUMA Sustainability Team (“PUMA Hotline”)
• Third-party platforms made available to factory workers by the factories
Complaints may be made anonymously and all information regarding the complaint is treated as strictly
confidential and only shared on a need-to-know basis or if required by law. All complaints received are
acknowledged within seven days and PUMA shall conduct a comprehensive investigation without delay.
PUMA will also share the outcome of the investigation with the party making the complaint.
PUMA shall review the effectiveness of its complaint procedure at least once a year, or on an adhoc basis if
PUMA expects a significant change or increase in risk exposure in PUMA’s own operations and at PUMA’s
business partners. We aim to translate the Rules for the Complaint Procedure into 40 languages in 2024 to
ensure it is accessible for end users in PUMA’s supply chain.
↗ T.08 WORKERS’ COMPLAINTS 2020 – 2023
Workers’ complaints
2023
2022
2021
2020
Total received – external channels (third-party platforms)
1,544
2,006
3,132
1,021
Total received – PUMA Hotline
107
159
223
101
Total confirmed- PUMA Hotline and third-party platforms
1,443
1,877
3,165
984
Total received – PUMA Hotline and escalated to PUMA via third-party
platforms
148
173
262
127
Resolved - PUMA Hotline and escalated to PUMA via third-party platforms
148
172
261
126
Not resolved - PUMA Hotline and escalated to PUMA via third-party
platforms
0
1
1
1
Resolved (%)
100%
99.4%
99.6%
99.2%
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↗ G.09 NUMBER OF MOST FREQUENT GRIEVANCES RAISED IN 2023 THROUGH PUMA HOTLINE
AND THROUGH THIRD-PARTY PLATFORMS ESCALATED TO PUMA
WORKER COMPLAINTS
The most frequent areas of concern raised by workers remain as fair compensation, their employment
relationship, and excessive working hours. Most workers’ concerns about wages and benefits are mainly
due to their misunderstanding of wage and benefit calculations. We asked factories to proactively talk to and
train workers on wage and benefits' calculation methods. Regarding the employment relationship topic,
many cases are about workers wishing to resign without following the legally required notice period.
We asked factory management to discuss solutions with their employees.
In any country, when workers complain about working during public holidays or overtime hours, PUMA
would engage with factory management, to adjust the production schedule and to make sure overtime is
voluntary and properly communicated with workers. Furthermore, PUMA provided training to these
factories on working hours management, and overtime root cause analysis to prevent excessive overtime.
Below is a case study of the PUMA Hotline, which explains how we followed-up with our supplier to close
the single remaining open case of 2022.
39
31
20
11
11
10
5
3
2
2
6
2
3
2
1
Resolved
Not-Resolved
Unaccepted
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↗ CASE STUDIES
PUMA Hotline
A worker from a footwear factory in Vietnam called the PUMA Hotline in September 2022 regarding
the subsidies sponsored by the government according to the Resolution No. 68/NQ-CP dated on
July 1
st, 2021. Under this regulation, employees who were under contract suspension or termination,
or unpaid leave between May 1
st, 2021 and December 31
st 2021, and pregnant or taking care of children
under six years old are entitled to one of government subsidies. The complainant submitted all the
necessary documents to the factory to apply for this government subsidy but did not receive
any updates.
PUMA immediately contacted the factory. The factory explained that due to being busy with Covid
prevention measures and high levels of absenteeism in January 2022, they missed the deadline to
submit the documents to the local authority. In total 2,032 workers failed to receive a total amount of
about $ 115,000. Despite the factory’s efforts to follow-up with the local authority for the payment,
there was no positive response.
PUMA encouraged the factory to discuss with the Trade Union representatives to find a solution. In
July 2023, the Trade Union and the factory reached a consensus so the factory would pay 70% of the
subsidy, $ 78,388 to make up for the unpaid subsidy. PUMA verified that an instalment of about
77,181werepaidtoworkersin2023.Afewworkerscouldnotbepaid( 1,207) as they had left the
factory. We are still engaged with the factory management regarding the remaining 30%.
THIRD PARTY COMPLAINTS
We continued following-up on the six open third-party complaints in 2022. Five related to freedom of
association were resolved through active engagement with factories, union and other stakeholders, with
union representatives reinstated or compensated in agreement with the unions involved. One of these five
cases was settled in collaboration with the Fair Labor Association and other brands, more details can be
found in case study below. Another complaint is about workers’ wages in Mauritius, which was followed-up
under the umbrella of the Fair Labor Association and in collaboration with other brands: migrant workers in
Mauritius received less than a minimum wage after the dormitory fees were deducted from their salary.
Based on the inspection report of local labor authority the practice is legal. In 2024 we will continuously
engage with the FLA and other stakeholders to find a collective solution.
In 2023, we received 15 third-party complaints from external organisations, 11 of which have been resolved.
Nine cases were related to freedom of association breaches, eight out of these nine cases were resolved
through active engagement with factories, unions and other stakeholders. The union representatives were
either reinstated or compensated in agreement with the unions involved. One case is still going through the
mediation process between management and the trade union.
Three cases involved wage and benefits issues; one of them is the request from the Bangladesh Union
Federation to provide support on their minimum wage demands. Upon receipt, PUMA actively engaged with
ILO Better Work and the Fair Labor Association. We published our Position on our website, and co-signed a
letter to the prime minister with other brands, through Fair Labor Association in November, to support
trade unions. Another two wage and benefits cases are still under investigation.
Two cases relate to NGO reports on working conditions for supply chain workers in Pakistan and Cambodia.
For both reports we engaged with ILO Better Work and the reporters. Details are provided under Pakistan
and Cambodia paragraphs below.
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In May 2023, a trade union requested the dismissal of two managers at a factory in Cambodia because they
thought they were responsible for the reduction of orders, among other concerns. The management and
union had several meetings to discuss the concerns. The management accepted all the trade union’s
concerns and took action, except for the dismissal of the two factory managers, which the trade union
agreed to retract.
Pakistan
In 2023, Labour Behind the Label published a Report on labour rights in Pakistan regarding issues such as
no payment of living wage, no employment contract, leave being denied or unpaid, child labour, no social
security, harassment, health and safety issues, fire safety risks and freedom of association breaches.
PUMA has investigated the details of the report and engaged with the reporters to understand the
methodology used. The report relates to factories located in Karachi, Faisalabad, and Lahore. While PUMA
does not have a business relationship with any suppliers in these regions, our subsidiary stichd, does have a
business relationship with four factories in this region, two of which are included in the report.
Three out of the four factories in the mentioned areas were audited in 2023, while one factory was audited in
2021 with a rating still valid in 2023. As a follow-up in 2023, PUMA conducted a full unannounced
assessment of all four factories through a different third-party company. As a result, three of the factories
were downgraded. We are closely following up on progress to address these newly identified violations
and all factories producing PUMA products that fall within the scope of the Better Work programme are now
enrolled in the Better Work programme. Additionally, all workers of factories producing for PUMA in
Pakistan will have access to a local hotline, Hamari Awaz.
Better Work Pakistan will also provide a social dialogue programme, as well as leadership capacity building
initiatives and training for female workers. Other services will include the ILO’s occupational health and
safety approaches, a factory improvement toolkit and productivity focused training. Additionally, PUMA
signed the ACCORD Pakistan in March 2023 for all factories producing PUMA and stichd products.
Cambodia
In 2022 we received five complaints concerning three Cambodian factories, about potential breach of
freedom of association rights. Three were resolved in 2022 and two in early 2023. We worked to find the best
solution related to these concerns, facilitating mediation meetings between workers’ representatives and
factory management, partnering with Better Work Factories Cambodia and/or with other brands producing
in the same factories. It took three to five months to solve these complaints.
Despite all our efforts, we received five complaints about freedom of association from Cambodia in 2023.
Four cases were resolved through open dialogue and facilitated mediation meetings between factories and
unions. One case is still under mediation or investigation.
We continued to work with Better Factories Cambodia (BFC) and hosted a training series from April to
August 2023 for all Cambodian factories producing PUMA products. 183 participants from 27 factories’
management teams, shop stewards and union representatives attended the training. As a lesson learned
from training conducted in 2021, we added one exclusive session for factory decision-makers in Chinese in
addition to a session conducted in Khmer for workers representatives and trade union leaders.
The aim of the training was to provide participants with a better understanding of:
• Rights and obligations of the employer, unions and worker representatives
• Managing communication and employment contract termination such as: resignation, dismissal, and
retrenchment.
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As per the BFC feedback, as result of the training participants confirmed they gained a better understanding
about Freedom of Association and their roles and responsibilities. All 27 factories submitted a Corrective
Action Plan after the training. We will verify the implementation of each action plan in early 2024 according
to the five KPIs established by BFC. They are described below:
1. Conduct regular meetings between the employer, union and shop stewards to raise and address any
concerns in the workplace on weekly/biweekly/monthly basis.
2. Develop/review a Freedom of Association (FoA) policy in consultation with the unions and shop stewards
and implement this policy accordingly.
3. Develop/review a Grievance Handling policy in consultation with the unions and shop stewards and
implement this policy accordingly.
4. Develop/review a policy for Employment Contract Termination in consultation with the unions and shop
stewards and implement this policy accordingly.
5. Provide internal/external training to more workers on relevant topics such as the roles and
responsibilities of the employers, unions and shop stewards.
In September 2023, the NGO Action Aid published an investigative report alleging that garment factories in
Cambodia, supplying apparel and footwear to companies (including PUMA), reduced monthly wages
compared to 2020 levels and failed to pay sufficient severance when the factories closed due to the COVID-19
lockdown. The report, which interviewed 308 garment workers in 15 factories, also claimed that workers
were unable to afford necessities even after the COVID-19 lockdown restrictions were lifted due to lower
wages and fewer overtime hours, while overtime pay became a systemic dependency.
Following the report, PUMA engaged with the Clean Clothes Campaign (CCC) and Action Aid to understand
the methodology behind the allegations that were made. For PUMA, the allegations relate to six of PUMA’s
suppliers, two of which PUMA had ended the business relationship with by mutual agreement in 2021. After
further investigation, PUMA did not identify any wage gap as per the government’s instructions during the
lockdown period in the remaining four factories. Although “no work, no pay” directives were in effect, PUMA
ensured that workers would receive a regular income during 2021 lockdown through regular communication
with our suppliers in collaboration with our sourcing team.
Between 2019 and 2022, Cambodia represented around 13% of PUMA’s total sourcing volume. In 2020 and
2021, PUMA focused on keeping suppliers in business and safeguarding workers’ health, employment, and
income through several measures including: minimizing order cancellations (0.35% of orders were
cancelled in 2020) and expanding our PUMA Vendor Financing Programme, with an increase in suppliers'
participation from 21% in 2019 to 30% in 2020. As a responsible business partner for our suppliers, PUMA set
up a responsible purchasing practices policy and engaged with Better Buying, an independent non-profit
organisation, to collect feedback from our core suppliers related to our purchasing practices. We reported
the key findings of the Better Buying survey in this report.
PUMA Annual Report 2023
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76
↗ CASE STUDIES
Indonesia
On July 7
th, 2023, PUMA received complaints from a union related to union staff members at one of
PUMA’s footwear suppliers who were terminated based on not passing their probation period. The
union mentioned that the termination was considered illegal since it was without prior notice and no
evaluation was performed by a respective supervisor and section manager. The union believed that
this happened due to their union membership. The union leaders asked PUMA to support the
reinstatement of the three workers. On July 13
th, 2023, PUMA investigated and interviewed the factory
management and union representatives. PUMA found that the termination of the three union
members was not legal since there was no clear performance assessment from the respective of the
section heads. This was explained to factory management who agreed to re-instate the three
workers to the same position with the same wage. No wages were deducted for the period when the
workers were laid off. The union leader acknowledged PUMA’s engagement in this case and
recognised our commitment to respect freedom of association.
Madagascar
In June 2022, PUMA received a request from IndustriALL
’s Sub-Saharan Africa regional office to
support one of their trade union affiliates called SEMPIZOF in Madagascar. According to IndustriAll,
about 350 machinists went on strike in a factory producing for PUMA and other brands from May 18
th
to 25
th, 2022 to protest on wages and unfair skills’ assessments for experienced workers. The strikers
also denounced sexual harassment against female workers and bribery during recruitment.
SEMPIZOF approached the Labour Inspectorate and Labour Tribunal with another IndustriALL
affiliate SVS to request the reinstatement of 50 workers (dismissed during the strike) and respect of
workers’ rights. We immediately followed up with the supplier, who confirmed the unrest of 345
workers (out of 1,550), the dismissal of 58 workers, and their willingness to collaborate
for remediation. The four brands including PUMA producing in this factory had several meetings on
collaborative actions and reached out to the Fair Labor Association (FLA) for support.
In July 2022, during a first call with the FLA, the brands agreed to find an independent third party to
conduct an in-depth investigation. The FLA interviewed several candidates and commissioned an
independent third-party The Labour Hive in November 2022. It completed an investigation and
provided a detailed report with suggested actions in February 2023. The report includes a thorough
analysis of all allegations. The factory immediately suspended the manager related to
sexual harassment allegations and dismissed him after the investigation. The investigation did not
identify issues related to overtime, short-term contracts, unfair dismissals because of trade union
activities nor bribery at recruitment. The FLA published the results of the investigation report.
Brands studied the report and agreed on an action plan with the supplier in May 2023. During a
follow-up verification of the remedial action plan in November 2023, it was confirmed and verified by
The Labor Hive that factory management had engaged with various stakeholders such as
local authorities, Better Work, trade union (FISEMA), and worker reps to take corrective actions.
Various projects and programmes have been implemented, and improvements such as an increased
meal allowance, adjusted salary as per government decree, regulating probation period
for production workers, and removal of the dismissed workers from the blacklist (so that they can
find jobs in other factories) were made. In partnership with ILO Better Work, the factory
arranged several trainings on Freedom of Association, Harassment and Abuse, Compensation and
Benefits and Hours of Work. Further improvements on workplace dialogue, workers’
satisfaction surveys, training effectiveness, renewal of workers’ representation election, and the
implementation of a workers’ performance evaluation system are still on-going and aim to be
completed by August 2024.
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ZERO TOLERANCE ISSUES
All issues identified during our auditing and hotline activities are classified as zero tolerance issues (such
as child labour or forced labour), critical issues or other issues in our Sustainability Handbooks.
Zero tolerance issues lead to the immediate failure of an audit. If these issues are reported for a new
factory, the factory will not be allowed to produce PUMA goods. Established suppliers must remedy all zero
tolerance issues immediately by conducting a root cause analysis and implementing preventive measures to
prevent the issue reoccurring. As a last resort, a business relationship can be terminated if the factory fails
to cooperate. Other issues are also followed up on by our Compliance team.
In 2023, we identified 19 zero tolerance issues and were able to remedy eight on workers’ compensation in
line with legal requirements, lack of transparency and wastewater discharge. Two zero tolerance issues
remain open. One was related to a South Africa-based factory producing furniture for our retail stores
paying 94% of the minimum wage, as they were granted an exemption by local authorities. After meeting the
factory management, they committed to pay the full minimum wage from July 2024. Another example is
a factory in Pakistan which was found to have transparency issues during an unannounced audit in late 2023
conducted after the publication of a Report from Labour Behind the Label. The factory committed to
improve and joined the Better Work programme in December 2023. We informed Better Work about this
case and intend to resolve this issue during its first assessment. Nine factories were not onboarded or were
deactivated in 2023. The increase in zero tolerance issues is due to the increased number of
factories audited in 2023.
↗ T.09 ZERO TOLERANCE ISSUES (ZTIS)
Country
2023
2022
2021
India
5
3
Bangladesh
3
2
Cambodia
2
1
2
Vietnam
2
2
Canada
3
Pakistan
2
South Africa
2
Brazil
1
China
1
Egypt
1
Malaysia
1
Philippines
1
Spain
1
Grand total
19
12
4
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FREEDOM OF ASSOCIATION PROTOCOL IN INDONESIA
To ensure workers’ voices are heard, we want to foster Freedom of Association (FoA) and signed the
Indonesia FoA Protocol.
The main objectives of the Freedom of Association Protocol are:
• Eliminate the practice of union busting in the factory and to foster healthy industrial relationships
• Factory management and union leaders can identify violations and challenges around FoA that arise in
the factory and are able to discuss solutions together
• Avoid victimisation of union representatives and members when disputes arise between union members
and management
• Set up fair rules for the implementation of FoA by having a joint understanding and commitment
between workers and the factory management
• To have extra layer of rules and regulations related to FoA practice that is not regulated in Law
No. 21/2000
As of end of 2023, seven Tier 1 factories have agreed to apply the FoA Protocol with 13 unions. Two factories
are planning to sign up in 2024, while the remaining ten Tier 1 suppliers either do not have a union or their
union is not a member of FoA Protocol. As of end of 2023, no FoA case within PUMA suppliers has been
escalated to the FoA Protocol national committee. FoA cases are mainly resolved internally at a factory level
without PUMA’s involvement.
WAGE ISSUE IN KARNATAKA
On February 19, 2020, the state government of Karnataka increased the Variable Dearness Allowance (VDA),
requiring manufacturers to pay workers Rs. 417.56/month as a component of their wages, from April 2020
onwards. The VDA is calculated based on the increase or decrease in the consumer price index (CPI) to help
employees in the public and private sector to cope with the rising cost of living due to inflation.
The Karnataka labour department deferred the payment of VDA (as per the VDA Hike Order) until
March 2021 due to the financial hardships caused to employers during COVID-19. Two unions challenged the
deferral order and filed two petitions in August 2020. On September 11, 2020, the Karnataka High Court
announced that the Labor Department’s postponement of the wage increase was illegal as per Section 26(2)
of the Minimum Wages Act. This means that non-payment could be seen as being in contempt of such a
court order. In practice, factories paid Rs. 622.44/month VDA to workers from April 2021, but they did not pay
Rs. 417.56/month to workers from March 2020.
We have actively been working with our sourcing and suppliers in the region, informing our three suppliers
that PUMA expects suppliers to pay the incremental minimum wages (considering both the 2020 and 2021
VDA adjustment), including arrears to both existing and former workers. We aligned our expectations of
suppliers with the Worker Rights Consortium and kept informing them on our progress. In 2023, $ 484,928
was paid to 13,687 workers, including both existing and former workers. We verified payment on-site, except
for one factory onboarded in April 2023, where a visit is scheduled in early 2024.
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FAIR INCOME
TARGET DESCRIPTION:
• Make sure all PUMA employees are paid a living wage
• Carry out fair wage assessments including mapping a specific wage ladder for top five sourcing
countries to help improve their wage levels and practices
• Ensure bank transfer payment to workers at all core suppliers by 2022
• Ensure effective and freely elected worker representation at all core Tier 1 suppliers
Relates to United Nations Sustainable Development Goals 1, 2 and 10
KPIs:
• Percentage of average wages compared to minimum wage
• Percentage of workers with permanent contracts
• Percentage of workers with social insurance coverage
• Percentage of workers paid via bank transfer
• Percentage of factories with freely elected worker representation
• Percentage of factories with collective bargaining agreements
• Number of countries with fair wage assessments over the last five years
For the definition of fair wages, PUMA follows the requirements for compensation set out in the Code of
Conduct published by FLA. The Fair Wage Network conducts wage assessments and evaluates the wage
systems of selected factories across 12 dimensions, focusing on five major areas: legal compliance, wage
levels, wage adjustments, pay systems and social dialogue and communication. It also assesses the priority
the wage policy takes within the company’s Human Resources policy and its Sustainability Strategy
(considered as a thirteenth cross-cutting dimension).
FAIR WAGES AT PUMA'S OWN ENTITIES
The increasing cost of living is an emerging risk for PUMA. In 2021, we purchased a license for the living
wage database of the Fair Wage Network. In 2021 and 2022, we used this database to check that a living
wage was being paid to all PUMA employees globally. In 2022, our global leadership team implemented
performance indicators - tied to bonuses - related to ensuring PUMA employees earned a living wage. The
results of this internal assessment show that in 2022 all regular PUMA employees globally who were
working full time were paid according to living wage thresholds at the regional/city level or above the Living
Wage National Adjusted Mean as defined by the Fair Wage Network. This was also the case for 2023. See
Our People section for further details.
FAIR WAGES IN THE SUPPLY CHAIN
As part of our efforts to ensure fair wage practices at the factories of our suppliers, we have defined
the failure to make a full payment of at least the minimum wage as a zero-tolerance issue. This means that
to be taken on as or to remain an active PUMA supplier, a company must pay minimum wages in full
compliance with local regulations. 99.97% of workers in 2023 were paid at least minimum wage. Provisions
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around the payment of overtime hours and social insurance are also clearly articulated in PUMA’s Code of
Conduct and are scrutinised regularly as part of our Compliance Audit Programme. The performance of
PUMA‘s suppliers in other Fair Wage dimensions is also assessed through fieldwork assessment surveys
(among both the workers and management) carried out by the Fair Wage Network.
DIGITAL PAYMENT
In 2023, 100% of our core factories paid 224,444 employees digitally. We are further expanding the digital
mapping to all Pakistan factories, where 1,742 employees from four suppliers are not yet paid digitally. We
will follow up in 2024.
FAIR COMPENSATION DASHBOARD
We have collected wage data annually from our core Tier 1 factories for several years. We use this data to
report S-KPIs (see table T. 12). In 2022, we used the FLA’s Fair Compensation Dashboard* to analyze 2021
wage data for 59 strategic Tier 1 factories, and 2022 wage data for 60 strategic Tier 1 factories in 2023. We
use the Dashboard to compare aggregated and anonymised data from industry peers and, where available,
against living wage estimates of the Global Living Wage Coalition (GLWC), developed by the Anker Research
Institute**. Where GLWC estimates are not available, namely in Indonesia, we used 2022 Fair Wage Network
benchmarks***.
Graph G.10 shows the results of our benchmarking for 60 core Tier 1 factories in local currency, covering
wages in 2022. This data covers approximately 75% of PUMA’s global production volume for 145,834
workers employed under those suppliers. 32 factories paid a living wage to 83,089 workers in Cambodia,
China, Pakistan and Vietnam, covering 45% of PUMA’s global production volume. Those 83,089 workers
represent 13% of our total supply chain workforce.
Below is our analysis of the results:
• All of our five strategic factories in Cambodia, one out of two strategic factories in Pakistan, 13 out of 18
strategic factories in China and 13 out of 20 strategic factories in Vietnam pay, on average, a living wage
as set by the Global Living Wage Coalition. For Vietnam, as the GLWC provided a breakdown of the living
wage benchmark into four different levels instead of two previously, seven Vietnam factories out of 20 fell
below GLWC benchmarks. These seven factories now have a higher living wage level to reach.
• One supplier in the Philippines, which is below GLWC benchmark, will go through a Fair Wage
Assessment in 2024.
• In Indonesia, all strategic factories went through Fair Wage Assessments or Remediations. One of the
factories received the Fair Wage Certificate. At two factories re-assessed after remediation, we saw
improvements in their scores on the 12 Fair Wage Dimensions, especially on prevailing wage, real wages,
communication and social dialogue. These actions were taken between 2022 and 2023, which explains
why there is a wage gap towards a living wage. We will keep following the remediation actions of these
four core factories in Indonesia.
* Industry average wage data from the FLA Fair Compensation Dashboard from November 2020 and October 2021. Users of the
FLA’s Fair Compensation Dashboard have access to live anonymised monthly average net wage calculations based on all
wage data uploaded per country and year. Averages are updated as wage data is uploaded into the dashboard and includes
the Net Wage = Basic (Contracted) Wage + Cash Benefits + In-Kind Benefits – Mandatory Taxes and Legal Deductions.
Payment of overtime is excluded.
** Global Living Wage Coalition: The GLWC estimates and reference values are developed by the Anker Research Institute. The
methodology for these estimates uphold the definition of the living wage, which includes the standard remuneration received
by a worker for a workweek, in a particular place, to afford a decent standard of living for the worker and his/her family.
Elements of a decent standard of living include food, water, housing, education, healthcare, transportation, clothing and
other essential needs, including provision for unexpected events.
***Fair Wage Network methodology: It takes into account the minimum living wage necessary for a worker to cover his/her
family's basic needs considering multiple income earners in the family (the necessary family budget being covered by the
sum of income earners). FWN also proposes a more ambitious living wage threshold that would consider one income earner
and not multiple income earners. PUMA used multiple income earners thresholds in our fair wage analysis.
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• The Turkey factory’s net pay has increased by 55% compared to 2021 due to the high inflation. We plan to
enroll this factory for a Fair Wage assessment in 2024 to evaluate its wage system, so the factory can set
up an action plan and workers’ income can increase.
• One supplier in Pakistan reached the Global Living Wage Coalition Benchmark. Another supplier
reached 97% of the GLWC benchmark. We will launch Fair Wage Remediation with the latter in 2024.
• Wage payments in Bangladesh, despite being above industry average, fell well short of the Global Living
Wage Coalition Benchmark and reached 67% of the Global Living Wage Coalition Benchmark in 2022;
(70% in 2021, 69% in 2020).
In 2023, we conducted Fair Wage Assessments with ten factories in Bangladesh, Pakistan, Indonesia,
Cambodia and China, including seven re-assessments at factories in Bangladesh, Cambodia, Pakistan and
Indonesia and three first-time assessments at two suppliers in China and one in Bangladesh.
↗ G.10 FLA FAIR COMPENSATION DASHBOARD 2020 – 2022
FAIR WAGE ASSESSMENT
Since 2018, we have asked Fair Wage Network (FWN) to conduct fair wage assessments at our core factories
based in Bangladesh (2018), Cambodia (2019), Cambodia and Indonesia (2021), Bangladesh,
Vietnam, Pakistan (2022), and China (2023) at 27 factories in total. Six factories obtained a Fair Wage
Certificate, meaning that across the 13 dimensions of Fair Wage, wage and overtime payment,
communication, and social dialogue for example, factories received at least 280 points out of 400 with no
more than two dimensions below a 40% score, and workers are paid above the Fair Wage Network Living
Wage threshold.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
PUMA Average
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
PUMA Average
2021 (1/14)
2022 (1/10)
Turkey
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
PUMA Average
Indonesia
0
500
1000
1500
2000
2500
3000
3500
PUMA Average
China
0
50
100
150
200
250
300
350
PUMA Average
Cambodia
0
5000
10000
15000
20000
25000
30000
35000
40000
PUMA Average
Pakistan
0
5000
10000
15000
20000
25000
PUMA Average
Bangladesh
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
PUMA Average
Vietnam Rural
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
PUMA Average
Vietnam Urban
Net Legal Minimum Wage 2022
Industry Average 2022
GLWC Benchmark
FWN living wage
Philippines
2020 (1)
2021 (5/15)
2022 (4/31)
2020 (3)
2021 (18/122)
2022 (18/112)
2020 (16)
2022 (1)
2020 (1)
2021 (2/2)
2022 (2/11)
2020 (2)
2021 (5/36)
2022 (5/13)
2020 (4)
2021 (8/31)
2022 (9/57)
2020 (7)
2021 (11/122)
2022 (12/107)
2020 (7)
2021 (9/122)
2022 (8/107)
2020 (6)
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A positive outcome is that factories are strong in some institutional elements such as wage grids,
monitoring the wages’ cost progression within the total production cost (including involving worker
representatives to discuss and negotiate wage related issues and paying wages above competitors’ rates
and above companies from other sectors located in the same area. However, similar developments were not
always reported on in collective agreements, which have rarely been signed at the factory level, and
monitoring process for moving towards the payment of a living wage. These insights still provide valuable
information for follow-up and remediation in these factories. Worker satisfaction with wages and working
conditions was found to be relatively good, with most workers being either ‘fully’ or ‘partly’ satisfied with
their wages and working conditions. At one supplier, however, it was found that nearly half of the workforce
were not satisfied with the working conditions, we will follow up on this in 2024.
In 2023, out of 10 factories that went through a fair wage assessment, six were re-assessed after a nearly
one-year remediation phase with the support of Fair Wage Network (three in Bangladesh, one in Cambodia
and two in Indonesia). All six factories improved significantly in communication and social dialogue, wage
structure and also competitiveness. Under the Fair Wage Network Remediation Framework, social dialogue
activities took place at those six factories and the wage structure was jointly reviewed as a result. Although
wage adjustment mechanisms were improved, there is still room for improvement as regards the living
wage. At the three factories assessed for the first time, we will work with the Fair Wage Network to further
improve their wage strategy and pay systems. One factory in Pakistan was re-assessed as they previously
had reached the GLWC living wage threshold. The factory has not yet received fair wage certification
although its score has improved.
The Fair Wage Remediation programme provides a remediation plan to factories based on their individual
assessments, and guides factories in setting up a Fair Wage Implementation Committee (consisting of
workers and management representatives). The Committee is trained by the Fair Wage Network, on fair
wage dimensions, wage grid, and how to a conduct living wage survey. The committee is responsible -under
FWN guidance- for implementing the remediation plan.
In Indonesia, both factories under the remediation programme opened a dialogue channel with trade unions
to negotiate the pay systems. One supplier included a seniority bonus into its basic wage, 90% of workers
had a 0.46%-1.15% wage increase since January 2023; the factory also provided 14% to 28% as skill bonuses
to workers having the ability to operate more than one machine. Another supplier pays workers higher than
the legal requirement, providing a seniority bonus of 0.42%-0.48% of the minimum wage to workers who
have worked more than one year, and providing a skill bonus that ranges from 0.65% to 16.34% of the
minimum wage. All of these measures improve not only the fairness but also the efficiency of pay systems.
In Bangladesh, all three suppliers developed training modules and trained almost 100% of the workers
using a skills matrix for all the designations. This ensures that workers’ wages increase in step with human
capital developments (people skill development, working experience, creativity, strengths and attributes)
and that the promotion system is fair and transparent. Training programmes were also provided to both
management and workers on their roles and responsibilities based on the skills matrix and its connection to
wage increases. Suppliers also looked at the gap between workers’ gross income and the living wage, and
took initiative to minimize this gap. For example, one supplier introduced a fair price shop on the premises
of the factory, so that the workers get the daily products they need at an affordable price, allowing workers
to keep part of their wages for other needs. As a result of actions taken by our suppliers, we witnessed an
improved dialogue between workers and factory management on the topic of wages. Workers, in one of
three factories, formed a Trade Union during the remediation, so workers will be able to better coordinate
their workforce concerns through this platform. We got to understand that the management of this
particular supplier was highly supportive of the Trade Union’s creation, and it was found that their
concerned parties are currently engaged in a congenial relationship.
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In Cambodia, with the involvement of the Fair Wage Implementation Committee, the factory that started its
remediation programme in mid-2022, reviewed its wage structure by creating more bonuses such as
productivity bonuses and multi-skill bonuses. All of these are contributing to an almost 6% wage increase
on average for about 3% (122) of qualified workers. This helped the factory to stabilize its workforce, with a
14.8% reduction of annual staff turnover in 2022 and a further 68.5% reduction in 2023.
↗ CASE STUDY
Bangladesh
A factory in Bangladesh was assessed by Fair Wage Network team in 2018 to evaluate its wage
practices. The factory could not be certified, joined the Fair Wage Remediation Programme in 2022
and was re-assessed at the end of the programme in 2023. The company has developed a rather
comprehensive wage policy.
One of the major improvements was in ‘Communication and social dialogue’. A committee,
consisting of an equal number of representatives from management and workers, was formed to
implement a remediation plan. The workers’ representatives on the committee were engaged in the
decision-making process while developing and implementing the skills matrix, performance
evaluation processes, for example. A robust communication strategy was set, ensuring that
employees are well-informed about their wage levels and pay structures. The company set up a
social dialogue policy, allowing representatives of workers to be involved in discussions and
negotiations on wage matters. The intention is for these negotiations to lead to regular talks on
wage issues and the possible endorsement of a collective agreement in future. The improved labour
relations led to a 0.5% reduction in the staff turnover rate.
In March 2023, while the remediation programme was underway, the workers at the factory created a
Trade Union. This action suggests that the workers recognise the potential benefits of having a
collective organisation to represent their interests. By establishing the Trade Union, the workers
have created a structured platform that allows them to collaborate more effectively on matters of
collective concern. Currently, approximately half of the workers of the factory are members of that
Trade Union. The factory is working with Better Work Bangladesh, who provide training for both
management and union members on their roles and responsibilities under the Labor Law.
GENDER PAY GAP
For the first time in 2023, we collected wage data by gender. There is no wage gap between female and male
workers on a global average. We notice a difference of a few cents of Euros per hour in Pakistan, China,
Cambodia and Turkey, mainly because factories are paying higher wages for working positions, such as
polishing, or in warehouses that require the use of chemicals or heavy lifting and are positions
predominantly filled by male workers.
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↗ T.10 GENDER PAY GAP
1-2
2023
SOUTH ASIA
SOUTHEAST ASIA
EMEA
2023
Social KPI
Bangladesh
Pakistan
China
Cambodia Indonesia Philippines
Vietnam
Turkey
Average
Hourly average gross
wage excluding overtime
and bonuses (%)
(female-male)*
0.0
-0.2
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
Hourly average gross
wage including overtime
and bonuses (%)
(female-male)*
-0.1
-0.2
-0.1
0.0
0.0
0.0
0.0
-0.1
0.0
Number of factories
8
2
18
5
4
1
18
1
57
*
New KPI
1
Data received from 57 PUMA core suppliers representing 72.1% of 2023 production volume, 72.4% of 2023 production value;
reporting period for data collection: January 2023 – October 2023 (November and December 2023 were calculated based on
the estimation method)
2
Wage gap calculation – Average of total female workers’ hourly gross wage – Average of total male workers’ hourly gross
wage
RECRUITMENT FEES
PUMA signed the Fair Labor Association/American Apparel and Footwear Association Commitment to
Responsible Recruitment in 2018. Since then, we have been actively involved with suppliers, industry peers
and the UN’s International Organization for Migration (IOM) to ensure that the labour rights of foreign and
migrant workers are upheld in our supply chain.
We map on a yearly basis if our factories employ foreign migrant workers and how much workers paid in
recruitment fees. We then engage with our sourcing leaders, supplier top management, and in some cases
other brands the supplier produces for, to come up with an agreement on a timeline to pay migrant workers
back. The back payment could in certain cases be made in different instalments and not a lump sum to not
disturb the factory as not all workers are entitled to this payment – an issue which could lead to
misunderstandings between workers.
Through the efforts of multi-stakeholder engagements, factories paid back more than $ 100,000 to 255
foreign migrant workers at six factories in Japan, South Korea, China (Taiwan) and Thailand in 2022. PUMA
has used e-learning from the International Organization for Migration in employer guidelines to train 36
factories from Mauritius, China (Taiwan), South Korea, Thailand and Japan in 2022. In 2023, we kept
monitoring factories’ recruitment practices.
In May 2023, we found that eight foreign migrant workers had paid recruitment fees before starting to work
at three factories (two core Tier 2, one non-core Tier 2) in Taiwan; through communication with factories and
support from our sourcing team, over 16,000intotalwaspaidbacktotheseworkers.DuringanauditatoneSouthKoreafactory,wefoundthatoneworkerhadpaid 370 for a flight ticket from
their home country to South Korea. The factory immediately reimbursed this worker after the audit.
During audits conducted at the end of 2023, we found that 12 migrant workers had paid a total of
approximately 33,000beforetheystartedtoworkatthreefactoriesinJapan.Twofactoriesagreedtopaybackatotalof 23,109 to nine migrant workers in January 2024; we will terminate our business relationship
with the third factory which refused to reimburse workers since it is in breach of PUMA’s standards. We will
phase out this supplier by June 2025, so that they have sufficient time to find another customer to replace
PUMA’s business and to avoid impacting workers’ employment.
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In 2023, the IOM trained PUMA’s Sustainability Team in the following areas:
• How fair and ethical recruitment due diligence can help prevent and mitigate adverse human and labour
rights for migrant workers.
• Practical knowledge on how to apply Ethical Recruitment Due Diligence Tools, particularly the supplier
Self-Assessment Checklist, Corrective Action Plan, and the Interview Questionnaire for Migrant
Workers.
• Features and functions of the Ethical Recruitment Due Diligence tools as a trainer.
In 2024, the IOM will further support PUMA to develop suppliers’ guidelines regarding responsible migrant
workers recruitment and working conditions. These will be included into our Social Standards and
translated into all relevant languages. PUMA’s Sustainability Team will train our suppliers who employ
foreign migrants on these new requirements.
↗ T.11 FAIR INCOME TARGET STATUS
Sub-targets
2023
Baseline 2020
Target 2025
Digital payment (% of core Tier 1 and Tier 2 suppliers)
100%
90%
100%
% of workers that are receiving wage payments digitally
100%
*
100%
Percentage of core Tier 1 supplier facilities that have trade unions or
freely elected worker representation (core Tier 1)
66%
33%
100%
Fair wage assessments
(Mapping of a specific wage ladder for top five sourcing countries)
5 out of 5
2 out of 5
5 out of 5
*
No baseline in 2020
2022-2023 PUMA PLWF REPORT: LEADING
The Platform Living Wage Financials (PLWF) is a coalition of 20 financial institutions
that engage and encourage investee companies to enable living wages and incomes in
their global supply chains. The 2022-2023 PLWF report presents the annual
assessments of investee companies on living wage and responsible purchasing
practices. In 2023, PUMA was the only company that reached the Leading category for
its work on fair income, out of 31 companies from the Garment and Footwear sector.
SUPPORTING LEGAL MINIMUM WAGE INCREASE IN BANGLADESH
In 2023, PUMA received a letter from four Bangladeshi Unions calling for support for minimum wage to
increase, through social dialogue, and by making a long-term commitment to continue sourcing from
Bangladesh.
PUMA answered through a public statement recognizing that the current legal minimum wage in the
Ready-Made Garment sector is significantly below a living wage. In this statement, we share PUMA’s
standards regarding legal minimum wage, overtime and social insurance payment-related issues, as well
as our continuous monitoring and methodology, regarding living wage benchmarks and assessments. We
reiterated the importance of freedom of association and collective bargaining as a key means through which
employers, their organisations and trade unions can establish fair wages and working conditions. We also
supported the FLA’s letter shared in August 2023, which appeals to the Chairman of the Minimum Wage
Board to champion local union demands for increases in the minimum wage.
In October 2023, PUMA also joined other FLA-affiliated brands to ask the government to consider that the
minimum wage consultations should be made in an environment to support dialogue with relevant
stakeholders and Unions, seek to raise the minimum wage to a level that is sufficient to cover workers’
basic needs and some discretionary income and takes into account inflationary pressures, while ensuring
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that the minimum wage is reviewed annually. Signatory brands are AEO, Inc. Abercrombie & Fitch, adidas,
Amer Sports, Burton, Gap Inc., Hugo Boss AG, KMD Brands, Levi Strauss & Co., lululemon, Patagonia,
PUMA SE, PVH Corp, SanMar and Under Armour.
In both letters, PUMA shared its commitment to implement Responsible Purchasing Practices to support
negotiations and wage increases and to continue sourcing in Bangladesh.
WORKER REPRESENTATIVES PROJECT
Effective social dialogue and sound industrial relations are key components of achieving decent work.
Ensuring effective and freely elected worker representation in all core Tier 1 suppliers is among our
10FOR25 Sustainability Targets. PUMA encouraged our suppliers to join the ILO Better Work Programme,
which coaches the factory management to create or work with an existing bipartite or worker/management
committee to discuss and resolve workplace issues on an ongoing basis.
For factories that are not part of the Better Work programme, we partnered with Timeline Consultancy, a
China-based consultant experienced on improving worker-management cooperation, who trained PUMA’s
Sustainability Team in 2022 and 2023. Our PUMA Sustainability Team gained the ability to independently
promote the establishment of an effective Worker Representative Committee and to evaluate
its effectiveness.
Since 2022, 12 factories in China have established a Worker Representative Committee. 358 worker
representatives were freely elected by production workers, 59% of which are female workers. For a better
understanding of the worker-management dialogue mechanism, 380 representatives of factory
management were trained by PUMA’s Sustainability Team on the Significance of Dialogue and Worker
Representation before the worker representative election. After the election, all these factory management
and worker representatives were trained on their roles and responsibilities, rights and obligations, how to
conduct adequate information sharing and how to establish a dialogue mechanism, which enables open
dialogue between factory management and worker representatives.
In 2023, we expanded the programme to include two Vietnamese factories and one factory in Indonesia:
worker representative elections will be held in three factories in 2024.
SOCIAL-KPIS
On average, our core suppliers paid basic wages that exceed minimum wage levels by 12.7% in 2023. When
adding overtime and bonus payments, our core suppliers pay 62.7% above minimum wage. In view of the
global macroeconomic situation, which has led to a change in customers' ordering behaviour, we saw a
decline in the order book in the first half of 2023 and stabilisation during the second half of 2023; as a result,
overtime working hours decreased on average by 2.4 hours per week compared with 2022, which explains
why the percentage of gross wages (including overtime and bonuses) above minimum wage decreased
compared with 2022. At the same time, in 2023, the minimum wage increased over a 12-month average by
104% in Turkey, by 11% in Pakistan, by 2% in Indonesia, by 4% in the Philippines, by 3% in Cambodia and 0.3%
in China. For Bangladesh the new minimum wage came into effect on the first of December 2023, and
increased by 56%.
100% of workers are covered by social insurance in all countries except for China where 80.4% are covered:
this represents a 4.4% increase compared to 2022 due to factories making an effort to explain the benefits of
the programme and convincing workers to join social insurance schemes. The total average coverage with
social insurance increased from 97% to 97.5%.
In 2023, 32.3% workers are covered by a collective bargaining agreement (in 2022 34.4%). This number
decreased as one of our suppliers in Indonesia with a CBA dropped off our core supplier list.
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The percentage of women in managerial positions increased slightly to 50.4% (in 2022 49.1%) as some
factories reached their goals of increasing the number of females in managerial roles.
The percentage of permanent workers increased from 74.2% to 76.7% on average, mainly due to labour law
changes in Cambodia, under which more workers get an Undetermined Duration Contract (UDC), after
completing a two-year Fixed Duration Contract (FDC). In addition, since there was a decrease in orders
during the first half of 2023, factory management teams recruited fewer temporary workers.
The turnover rate decreased due to factories implementing worker retention programmes. However, in
countries such as Pakistan, Indonesia and Turkey turnover rates increased due to downsizing business or
workers entering into retirement.
The average injury rate was reduced to 0.2% (0.3% in 2022). We followed up on action plan implementation
after various OHS trainings, such as Accident Prevention and Reporting training, conducted by PUMA since
2021. In view of the 2023 global macroeconomic situation, which led to a change in customers' ordering
behaviour, we saw a decline in the order book in the first half of 2023 and stabilisation during the second
half. This led to a downturn in working hours, fewer temporary workers being recruited and potentially
fewer risks of injury. This could also explain why the injury rate decreased this year.
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↗ T.12 SOCIAL KPIS PUMA CORE TIER 1 FACTORIES 2020-2023
1-3
2023
SOUTH ASIA
SOUTHEAST ASIA
EMEA
2023
2022
2021
2020
Social KPI
Bangladesh
Pakistan
China
Cambodia
Indonesia Philippines
Vietnam
Turkey
Average
Gross wage paid above minimum wage
excluding overtime and bonuses (%)
23.6
33.2
5.9
6.1
1.3
0.0
31.4
0.4
12.7
13.4
14.5
13.0
Gross wage paid above minimum wage
including overtime and bonuses (%)
58.6
38.9
166.6
63.3
38.3
18.0
93.3
24.9
62.7
71.0
80.2
54.7
Workers covered by social insurance (%)
100.0
100.0
80.4
100.0
100.0
100.0
100.0
100.0
97.5
97.0
95.1
95.6
Overtime (hours per week)
6.0
0.3
13.5
4.9
4.5
6.0
3.5
3.8
5.3
7.7
8.3
5.4
Workers covered by a collective bargainning
agreement
0.0
0.0
93.3
40.0
25.0
0.0
100.0
0.0
32.3
34.4
37.2
26.9
Female managerial position (%)
7.4
7.7
56.3
64.6
73.8
76.9
71.2
45.3
50.4
49.1
NA
NA
Female workers (%)
42.0
9.7
61.6
83.1
82.8
63.9
76.2
58.5
59.7
60.0
59.5
58.8
Permanent workers (%)
100.0
100.0
28.6
62.7
99.2
77.2
45.6
100.0
76.7
74.2
75.5
74.4
Annual turnover rate (%)
27.3
32.9
52.8
41.9
26.5
15.1
39.9
34.8
33.9
35.6
34.0
29.9
Injury rate (%)
0.3
0.0
0.4
0.3
0.3
0.0
0.1
0.5
0.2
0.3
0.3
0.4
Hourly average gross wage excluding
overtime and bonuses (%)
(Female-Male)*
0.0
-0.2
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
Hourly average gross wage including
overtime and bonuses (%)
(Female-Male)*
-0.1
-0.2
-0.1
0.0
0.0
0.0
0.0
-0.1
0.0
Number of factories
8
2
18
5
4
1
18
1
57
65
63
58
* New KPI
1
Data received from 57 PUMA core suppliers representing 72.1% of 2023 production volume, 72.4% of 2023 production value; reporting period for data collection: January 2023 – October 2023
(November and December 2023 were calculated based on the estimation method)
2
Injury rate calculation – Number of OSHA Recordable cases X 200,000 / Number of Employee Labor hours worked
3
Wage gap calculation – Average of total female workers’ hourly gross wage – Average of total male workers’ hourly gross wage
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HEALTH AND SAFETY
TARGET DESCRIPTION:
• Zero fatal accidents
• Reduce accident rate to 0.5 at PUMA and at suppliers
• Building safety operational in high-risk countries*
Relates to United Nations Sustainable Development Goal 3
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Expand building safety projects to include Indonesia
• Ensure professional risk assessments are conducted regularly
KPIs:
• Number of fatal accidents at Tier 1 and core Tier 2 factories
• Average injury rate at PUMA
• Average injury rate at core Tier 1 suppliers
• Number of factories subject to our Building Safety Assessment Programme
Ensuring safe working conditions for our own employees and hundreds of thousands of indirect employees
at our manufacturing partners is an ethical imperative. In 2015, we set a target of zero fatal accidents and
aimed to reduce the number of work-related accidents. In 2021, we revised our Supplier OHS handbook,
requiring our manufacturing partners to conduct an OHS risk assessment. We also published the PUMA
OHS Policy for our own employees. Our health and safety targets are linked to the bonuses of our global
leadership team.
HEALTH AND SAFETY AT PUMA’S OWN ENTITIES
At our headquarters, we operate an occupational Health and Safety Committee, that oversees our health
and safety management system. The Committee includes a specialised labour physician, a health and safety
technician and employee representatives. In 2023, we certified our OHS management system according to
ISO 45001 at the headquarters level.
To ensure a global implementation of our health and safety policy, our larger subsidiaries have their own
health and safety committees or experts in place. For more than ten years, we have been able to record zero
fatal accidents at our own entities globally. We have also kept the lost time injury rate below 0.5 since 2019,
meaning that per 100 full-time employees, less than 0.5 accidents were recorded, in line with our targets.
*
High-risk countries are defined by the building safety index which is based on instances of non-compliance associated
with building approval, multi-tenant building, structural integrity, ventilation/ heating, and warehouses.
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In 2023, this target was supported by continuing our Occupational Health and Safety e-learning. Over 80% of
PUMA staff members globally participated in health and safety training to prevent injuries or work-related
negative health effects.
In addition, we offer sports facilities, canteens with balanced food and work-life balance courses at our
major offices globally. For more information on employee wellbeing please refer to the Our People section
of this report.
HEALTH AND SAFETY IN THE SUPPLY CHAIN
Apart from our ongoing auditing programme that includes occupational health and safety assessments, we
implement our Building Safety Assessment Programme in countries where we have identified risks. We also
set up professional risk assessments at all our major manufacturing partners. Despite these preventive
measures, unfortunately, a work-related accident resulted in the death of an employee in one of our
suppliers’ factories in India in 2023. We will keep our focus on Occupational Health Safety accident
prevention.
SUPPLIER TRAINING ON OHS RISK ASSESSMENT
In 2021, we updated our OHS Handbook to guide the OHS risk assessment processes and tools for the
factory management and OHS person in charge.
PUMA provided training to core Tier 1 and Tier 2 suppliers on how to conduct Occupational Health and Safety
(OHS) risk assessments in 2021 and 2022. We followed up on progress with an on-site visit by a third-party
auditing company.
In 2023, among the trained factories, we noticed fewer violations related to Chemical Safety Management (-
3%), and Electrical and Mechanical Safety Management (-2%) compared to 2022. However, we noticed more
violations related to noise pollution. We will explore how to improve together with suppliers in 2024.
In 2023, the PUMA Sustainability Team developed accident prevention and reporting training based on the
ITC-ILO material and provided Train-the-Trainer sessions to 266 managerial staff at 102 factories (core Tier 1
suppliers and all factories in India and Sri Lanka). Trained factory managers provided this training to 115,588
workers in 59 factories. Training hours were 117,695 in total. Some of the factory managers received the
training in late 2023, we will follow up on their workers’ training in 2024.
4,364 workers from eight factories in Cambodia and Indonesia completed the Better Work e-learning course
on Occupational Safety and Health via the WOVO mobile app, covering 51% of the employees in these
factories.
BUILDING SAFETY ASSESSMENT AND RISK ASSESSMENT
A safe workplace is a top priority at PUMA and we continuously carry out building safety inspections among
high-risk factories in our supply chain. From 2015 to the end of 2023, our Building Safety Assessment
Programme covered Bangladesh, India, Indonesia and Pakistan.
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↗ T.13 BUILDING SAFETY ASSESSMENT PROGRAMME
Country
Number of factories Comments
Bangladesh
21 Part of our ongoing membership of the Bangladesh Accord
India
6 In partnership with AsiaInspection or Elevate
Indonesia
5 In partnership with AsiaInspection
Pakistan
3 In partnership with Elevate
In 2023, we used EIQ to map all sourcing countries where building safety is considered as high risk. As a
result, two factories in Indonesia and four factories in India were identified as high-risk. The four factories in
India already went through a Building, Electrical and Fire Safety Assessment (BEFS) in 2022, conducted by
ELEVATE. A similar assessment was conducted in the two Indonesian factories in 2023. Through active
engagement with these four suppliers in India, 69% of the findings had been remediated by the end of 2023.
We will keep following up to ensure all findings are taken care of.
Five factories went through building safety inspections in Indonesia, two in 2023 and three in 2018. We
continued following up on remediation at the three factories. Two factories obtained building safety
certificates issued by the government, and one will be certified in early 2024.
↗ CASE STUDIES
Building Safety in India
A factory under the largest footwear supplier in India, underwent the Building, Electrical and Fire
Safety Assessment by a third-party inspection firm, Elevate, in 2022, as well as a follow-up
inspection in 2023.
75 findings were identified at the initial assessment, 22 of them categorised as Major Issues. PUMA
conducted an onsite follow-up with factory management, who then agreed to engage with experts to
conduct feasibility studies and implement corrective actions. Over $ 41,000 was invested to install
fire-fighting equipment, strengthen the building structure, do panel modifications, etc. As a result,
92% of findings had been corrected during the follow-up inspection in September 2023. The rest of
the findings require more time to remediate. PUMA will follow up with the supplier in 2024.
ACCORD
As part of its continued commitment to the ACCORD international programme, PUMA signed the Pakistan
ACCORD in early March 2023. Seven supplier factories joined the programme, including two of the three
factories that were previously assessed by ELEVATE and other third parties. Another factory in scope of this
programme was on-boarded in mid-2023, we are now applying for this factory to join the ACCORD.
Two factories are not under the scope of Pakistan ACCORD programme, as these are not textile product
manufacturers. One of these factories was on-boarded in the last quarter of 2022 and will go through an
assessment in 2024. The second factory went through a Building, Electrical and Fire Safety Assessment
(BEFS) conducted by ELEVATE in 2017 and 2021. Since then, the factory management has hired a
professional third party to support the remediation of the open findings. In 2024, this factory will be re-
assessed to measure progress.
Our factories in the ACCORD in Bangladesh have a completion rate (initial findings) of 94%, whereas the
average rate of all factories in the RSC programme is 91%. Eight (out of 21 ACCORD active) factories
achieved 100% remediation of the initial findings. Another seven factories achieved 90%-98% remediation of
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the initial findings. Six out of 21 factories were at low completion rates (0%-89%): two did not receive a follow
up inspection by ACCORD in 2023, two were newly onboarded to ACCORD, and two were delayed in
remediation of the findings. We will keep working with those factories on ACCORD remediation plan in 2024.
ACCIDENTS
In 2023, we unfortunately reported an employee death resulting from a work-related incident at one of our
suppliers’ factories in India. An electrician fell from the factory’s roof, as neither a secured ladder was used
nor a harness rope was installed. After 55 days of hospitalisation, the worker’s health deteriorated, leading
to his death. The factory paid all medical expenses and the legal compensation, as well as an additional
lump sum to the worker's family. An investigation and Hazard Risk Assessment were conducted by an
independent expert. Following this assessment, safety equipment including a harness hook was installed on
the rooftop, staff training on hazards and risks was provided and enhanced monitoring of potential unsafe
conditions was implemented to prevent similar accidents. We deeply regret this tragic accident which
caused the loss of this employee’s life.
INJURIES
The average injury rate was reduced to 0.2%. We followed up on factories' action plan implementation after
various OHS trainings, such as Accident Prevention and Reporting training, conducted by PUMA since 2021.
Given 2023’s global macroeconomic situation, which led to a change in customers' ordering behavior, we
saw a decline in the order book in the first half of the year and stabilisation in the second half. This led to
fewer working hours, and fewer temporary workers recruitment, meaning less risks for injury, this could
also explain why the injury rate decreased this year.
↗ T.14 INJURY RATES AT CORE SUPPLIERS
Country
2023
2022
2021
2020
Bangladesh
0.3
0.6
0.5
0.4
Cambodia
0.3
0.4
0.3
0.2
China
0.4
0.3
0.3
0.6
Indonesia
0.3
0.2
0.2
0.2
Vietnam
0.1
0.1
0.1
0.2
Average*
0.3
0.3
0.3
0.4
Fatal accidents**
1
2
0
0
*
Average of the five countries included in this table. Global average injury rate for PUMA’s core suppliers in 2023 was 0.2.
** Including non-core suppliers.
BANGLADESH EMPLOYMENT INJURY SCHEME PILOT
Despite significant progress on the way towards decent and safe working conditions in the ready-made
garment industry in Bangladesh, it lacks a comprehensive Employment Injury Scheme (EIS) in accordance
with international standards as defined in the ILO Employment Injury Benefits Convention. To mitigate that
gap the Bangladesh Government initiated a pilot programme to provide income replacements for the
permanently disabled and the dependents of deceased workers. The ILO and GIZ collaborated in the project
and agreed on the implementation as well as the transition to a permanent EIS after three to five years.
The EIS provides periodic payments/pensions as top-ups to the lump-sum payments of the Central Fund,
rendering the level of benefits compatible with ILO Convention No. 121. These payments are financed by
international brands.
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PUMA signed the voluntary pledge for the Employment Injury Scheme pilot in Bangladesh to contribute to
safeguarding decent living conditions for victims and their families. PUMA joined in early 2023, together with
seven other brands. We are actively engaged with the project not only by providing financial support, but
also by providing feedback for learning.
According to EIS data on 31 December 2023, the pilot has responded to 13 death cases. The EIS committee
has disbursed a total of 932,766 BDT, equivalent to 5,241 BDT as a monthly compensation, directly to the
family members affected by this tragedy. The pilot has responded to eight permanent disability cases, with a
total estimated lifelong benefit of 5,837,724 BDT.
As per EIS policy, factory and workers are kept anonymous, so we have no way to know if the families of the
two workers who passed away as reported in our 2022 Annual Report, have received such a benefit.
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ENVIRONMENT
The purpose of our environmental efforts is to ensure that PUMA and its suppliers are in full environmental
compliance and that any negative impact on the environment is minimised. Over the last ten years, PUMA
has not incurred any environmental violations or fines known to us. Ultimately, we are aiming for a positive
environmental impact of PUMA and our supply chain on the environment.
ENVIRONMENTAL MANAGEMENT AT PUMA’S OWN ENTITIES
We conduct energy efficiency audits every four years at our own entities. In 2023, we commissioned 19 audits
at PUMA offices, stores and warehouses in Germany, the Netherlands, France, Spain and Sweden.
Compulsory in the European Union, these audits help us to identify energy-saving opportunities at our
offices, stores and warehouses and roll them out globally. In 2023, for example, we replaced some lights at
our headquarters with more energy-efficient LED lights.
In 2022 we achieved the ISO 14001 Environmental Management certification for our headquarters and
published a stand-alone environmental policy. We also compiled and published an environmental handbook
specific to our own offices, stores and distribution centres. We continued our global data collection and
management processes for our own entities and set up a quarterly subsidiaries call for peer learning and
good practice sharing. These calls are also used to re-emphasize our Sustainability Strategy and goals with
our PUMA countries worldwide. The progress towards those goals is reported in this report.
ENVIRONMENTAL MANAGEMENT IN THE SUPPLY CHAIN
ENVIRONMENTAL RISK ASSESSMENT
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively. Please refer to the Due Diligence and Risk Assessment section of this report.
In 2023, we conducted an environmental risk assessment using EiQ platform by Elevate. EiQ is a data-driven
supply chain ESG due diligence platform used by businesses to enhance Environmental, Social, and
Governance (ESG) risk management. We focused on two risk areas; firstly, environmental country
risk exposure for supply chain and secondly environmental material risk exposure.
COUNTRY RISK EXPOSURE
We evaluated the environmental risk profile of our key sourcing countries. In 2023, the six most important
sourcing countries, comprising 90% of the total volume, are located in Asia. China is the biggest production
country in 2023 with a total of 30%, followed by Vietnam is the second biggest production country with 26%,
Cambodia with 13%, Bangladesh, which focuses on apparel, at 12%, Indonesia with 5% and India – only
serving the local market at 3%.
The parameters for the country risk include indexes such as air emission, environmental management,
waste management, environment permits and wastewater violations. The supply chain risk environmental
profile indicates that Indonesia and the Philippines are extreme-risk countries, whereas other key sourcing
countries like Vietnam, China, Bangladesh, India and Cambodia are high-risk countries. Taiwan is a
medium-risk country from supply chain environment risk. For environmental permits violations, Indonesia
and Bangladesh are indicated as extreme-risk countries.
The risks mitigation measures in place for extreme-risk and high-risk countries, excluding India include;
factory performance evaluation through Higg FEM verification, chemical management following ZDHC
guidelines, compliance to ZDHC Wastewater Guidelines and core factories’ participation in cleaner
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production programmes, capacity building training programmes, supplier scorecard with E-KPIs followed
by meetings with these core suppliers.
Publicly disclosed goals on reduction in water consumption, reduction in production waste to landfill and
increased use of renewable energy help to track the performance of core suppliers and hence help to
mitigate environmental risks. In China, the country with the largest sourcing volume in 2023, our suppliers
have been disclosing their environmental performance data on The Institute of Public & Environmental
Affairs (IPE) platform.
India production is only serving the local Indian market, and we have prioritised compliance with our Zero
Tolerance Issues. We have not yet launched mitigation measures such as Higg FEM verification,
chemical management following ZDHC guidelines, and compliance to ZDHC Wastewater Guidelines to all
factories. We will gradually enroll these factories in these programmes in the coming years. In 2024, we will
strengthen our existing measures to improve the environmental performance of supplier factories. We will
focus on the transition to Higg FEM 4.0 which is a more exhaustive evaluation. It will help factories to
further improve their performance and in turn help PUMA to manage its environmental risks. We plan to
discuss the results of this risk assessment with our sourcing teams for business consideration.
MATERIAL RISK
We evaluated the environmental risk of our key materials such as cotton, polyester, leather & rubber. The
environmental risk covers water use, non-GHG air pollutants, terrestrial ecosystem use, soil pollutants,
solid waste and water pollutants. The results indicate that material environment risk is highest for natural
rubber, followed by synthetic rubber and leather. Polyester has the lowest environmental risk. Furthermore,
we mapped our sourcing share by country of these materials.
Cotton: In 2023, we sourced 63% of cotton from the USA, followed by Brazil (15%), Australia (8%) and India
(4%). The USA is a high-risk country while Brazil and India are extreme-risk countries; Australia is a
medium-risk country. The risks are water use, air pollution and biodiversity and ecosystem.
We have required our suppliers to source only cotton grown in farms that are licensed as having good
farming and human rights standards (BCI), or recycled cotton from factories that are either Global Recycled
Standard (GRS) or Recycled Claim Standard (RCS) certified by 2025.
PUMA is taking steps to mitigate some of the environmental risks associated with cotton sourcing which
includes the adoption of BCI cotton, increased usage of recycled cotton, innovation to increase the share of
recycled cotton in our products, conducting Life Cycle Assessments of products and materials to evaluate
the environmental impact in lifecycle stages and engaging with the industry such as Textile Exchange to stay
informed on industry best practices.
We collect material data consumption on an annual basis along with the country of origin and require our
suppliers to keep all the supportive documentation available. We have also established an on-going due
diligence programme with our partner laboratory in Germany where we regularly test samples of cotton-
finished garments before shipment. This further strengthens traceability and control across our supply
chain, from the raw material to the finished products.
Through our partnership with Better Cotton, we support farmers in developing a better understanding of
Integrated Pest Management and phasing out the use of Highly Hazardous Pesticides (this helps to
address improper disposal of used agrochemical containers which can contaminate air, soil, water and
local ecosystems), to use water responsibly, to better protect the soil and to conserve and enhance
biodiversity on their land. Better Cotton has set up goals to reduce greenhouse gas emissions by 50% per
ton of Better Cotton lint produced by the end of the decade, ensure 100% of Better Cotton Farmers have
improved the health of their soil and reduce the use and risk of synthetic pesticides by at least 50%.
In 2023, the share of BCI cotton was 90.3% and recycled cotton was 8.6% of total cotton sourced by PUMA.
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Polyester: We sourced 79% of our polyester from China in 2023, followed by Taiwan at 9.2% and Vietnam
at 7.4%. China is a high-risk country. Risk profiles for polyester from Vietnam and Taiwan are not available
on the EIQ platform. High-risks are air pollution, water use and solid waste.
We have required our suppliers to source only polyester-certified by Bluesign/Oekotex, or recycled polyester
from factories that are either Global Recycled Standard (GRS) or Recycled Claim Standard (RCS) certified by
2025. PUMA has joined the Textile Exchange polyester challenge since our 2025 goal of 75% recycled
polyester is aligned with this challenge. We engage our core fabric manufacturing plants in energy
efficiency programmes and support them to the transition to 25% renewable energy processing in 2025. We
monitor and report chemical discharges, and work to eliminate pollutant chemicals.
In 2023, we sourced bio-based, high-performance polyester fibre known as Sorona, to up to 0.11% of our
total polyester consumption. Sorona contains over 20% bio-based carbon content, which helps to reduce
environmental impact, while maintaining quality and performance. Sorona is produced via a fermentation
process that utilizes corn sugar as the main ingredient.
In 2023, 61.8% of the polyester used in our products was recycled, 23.3% certified by Bluesign/Oekotex and
0.11% biobased.
Leather: In 2023, we sourced, 61% of our leather from the USA, followed by Argentina 27%, Australia 6% and
Brazil 5%. The USA, Brazil and Argentina are high-risk countries, while Australia is a medium-risk
country. High risks are air pollution, water use and impact on ecosystem.
PUMA is taking several steps to mitigate environmental risks associated with leather sourcing. These
include sourcing leather from Leather Working Group-rated tanneries, committing for sourcing
deforestation-free bovine leather, and focusing on innovation for the development of recycled and other bio-
based alternatives. We engage with Fashion Pact, Textile Exchange and the Leather Working Group (LWG)
to remain updated about industry best practices.
We have committed to sourcing all the bovine leather used in our products from verified deforestation-free
supply chains by 2030 or earlier. We have signed up for the Deforestation-Free Call to Action for
Leather, launched by global non-profits Textile Exchange and LWG.
99.7% of the leather that PUMA sourced in 2023 is from Leather Working Group-certified tanneries. This
means that the leather used in PUMA products comes from manufacturers who are working to implement
industry good practice standards of environmental management and traceability. PUMA currently monitors
its LWG medal-rated tanneries’ upstream traceability performance.
Around 76% of the leather used at PUMA is Suede, a byproduct of the full-grain leather business. The
challenge faced currently by PUMA and others in the industry is that most suede tanneries work with agents
and intermediaries alongside direct tanneries, to guarantee a stable supply which creates a challenge
to have full traceability at the cattle ranch level.
Our innovation team has worked to address the technological limitations of a shoe designed for composting
and launched the RE:SUEDE experiment. The upper of the RE:SUEDE is made of Zeology tanned suede.
Synthetic Rubber: We sourced, 74% of our synthetic rubber from China, followed by Vietnam 14% and South
Korea 4%. China and South Korea are high-risk countries. The risk profile for synthetic rubber from Vietnam
is not available on the EiQ platform. High risks are greenhouse gas emissions, water use and solid waste.
We have not yet mapped the manufacturing plants supplying synthetic rubber to our outsole manufacturers.
As part of our 10FOR25 targets, we work on developing recycled materials as alternatives to rubber. In 2023,
5% of synthetic rubber was recycled. We engage our strategic outsole suppliers in Higg FEM (environmental
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performance tool measurement of which includes energy use and greenhouse gas emissions, water use,
wastewater, emissions to air and waste management) and work with them to eliminate pollutant chemicals.
Natural Rubber: In 2023, we sourced 29% of natural rubber from Vietnam, followed by Brazil 25%,
Pakistan 13%, and Thailand 5%. Vietnam is categorised as an extreme-risk country. Risk profiles for natural
rubber from Brazil, Pakistan and Thailand are not available on the EiQ platform. High risks are mainly water
use and impact on the ecosystem.
In 2023, only 2% of the rubber used in our products was natural rubber. We aim in the future to only source
FSC-certified rubber. The FSC certification includes standards to maintain, conserve, and/or restore the
ecosystem and environmental values of managed forests and also avoid, repair, or mitigate negative
environmental impacts.
SUPPLIER ENVIRONMENTAL SCORECARD
In 2023, we developed environmental performance scorecards for core supplier factories to visualize their
progress towards our 10FOR25 targets and 2022 goals. During one-to-one meetings, we explained the need
for setting Science Based Targets to 21 selected suppliers, we reviewed the 2022 Environmental KPIs (E-
KPIs) for 60 suppliers and discussed their 2023 plans; the need for participation in cleaner production and
renewable energy programmes for some factories was also discussed. Environmental KPIs include Higg
FEM score, FEM chemical module score, MRSL conformance rate, wastewater test results, percentage of
renewable energy usage, greenhouse gas emission per product or volume of material, percentage of water
consumption reduction (per product or volume of material), percentage of production waste sent to landfill
(per product or volume of material).
These meetings were useful for understanding the challenges of our suppliers and for prioritizing our
actions to support them. Key meetings outcomes:
• Alignment on setting Science-Based Targets (SBT): In summer 2023, 20 out of 21 selected suppliers
agreed to set climate goals based on SBT methodology. In these meetings, we followed up our suppliers
decision to set up SBT. In October 2023, in partnership with Guidehouse, we launched a capacity
development programme for eight suppliers called Leadership on Climate Transition (LoCT), to support
suppliers in this journey. In 2024, this programme will be expanded to other suppliers who do not have
sufficient in-house or external expertise.
• Enrolment in cleaner production programmes: Factories were nominated to participate in Cleaner
Production programmes based on their performance through E-KPIs and the expertise of their team
members. In August 2023, Clean by Design (CbD) program phase three was launched in the China and
Taiwan region for seven factories. A new programme called Resource Efficiency (REF) in partnership
with ENERTEAM was started in Vietnam in August 2023 for four factories. The Cambodia Decarbonization
Programme (CaDP) with IFC will be launched in early 2024 for four factories in Cambodia.
• Enrolment in renewable energy programmess: Suppliers shared their plans to complete feasibility
studies or install rooftop solar systems. In the absence of adequate rooftop solar capacity, RECs
purchases were discussed. The suppliers also highlighted their challenges. Subsequently, GIZ-PDP
programme phase II was rolled out in Cambodia in February 2023 for one factory and in Vietnam in
March 2023 for four factories to support rooftop solar installation.
• Phase-out of coal-fired boilers: We discussed this challenging goal with the relevant suppliers to align
on a phase-out plan. Suppliers raised their concerns about the unstable availability of biomass, the
absence of sustainable biomass guidelines, and the increased cost of natural gas. We will bring these
challenges to the Fashion Charter working group to find solutions to address them.
• Higg FEM Performance: Discussions focused on FEM (Facility Environmental Module) score. We also
acknowledged improvements made by factories with an increased score in 2022 (2021 FEM score). We
aligned on the need for additional training and/or support, such as one-to-one support for low
performing factories to improve their score. 210 factories in total were provided training on Higg FEM in
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2023. As a result, the average 2022 FEM score of core factories improved to 69% from 61% (2021 FEM
score).
• Chemical Management: we focused on the factories with low compliance with MRSL standards and
ZDHC Wastewater Guidelines. We aligned with factories on the need to bring in chemical suppliers
disclosing their chemicals to the ZDHC gateway, a platform used to upload factory chemicals inventory
lists and measure their MRSL conformance rate. In February 2023, we invited chemical suppliers to join
the training session on ZDHC MRSL conformance. We also worked with some key chemical suppliers to
support them in complying with ZDHC MRSL standards. As a result of the efforts, the MRSL
conformance rate has increased from 68% in 2022 to 71% in 2023, and the average Higg FEM Chemical
module score improved from 39% in 2022 to 51% in 2023. For factories with low ZDHC Wastewater pass
rate tests, we discussed their corrective action plans. In 2024, we will continue to engage them to get
more chemicals to comply with ZDHC MRSL.
FACTORY ENVIRONMENTAL PERFORMANCE MONITORING
Social compliance audits: For suppliers, our PUMA social compliance audits (detailed in the Human Rights
section) contain a dedicated section on environmental and chemical compliance. For example, during each
audit, we inspect environmental permits, waste management and effluent treatment plants. In general,
PUMA social compliance audits are used for onboarding new factories.
Monitoring tools: For monitoring the environmental performance of suppliers, PUMA has used an industry-
wide tool, the Higg Index Facility Environmental Module (FEM) 3.0. PUMA requires an annual external
verification of the self-assessment FEM modules. This external verification may be completed by approved
verifiers from PUMA’s internal team, other credited brands, or third-party organisations on the approved list
from SAC. 100% of verification inspections are announced.
PUMA’s Environmental Performance Rating System is based on the ratings developed from the factories’
Higg FEM score verified by SAC-approved verifiers: A, B+, B-, C and D. The minimum passing grade from
the environmental perspective is 40% (i.e., only A, B+ and B- ratings are passing grades) and C and D are
failure ratings. This rating system was presented to suppliers in 2022 and implemented gradually during
2022 and 2023. Our environmental handbook has been updated accordingly. This rating system was included
in our vendor supplier scorecard along with social and chemical ratings.
↗ T.15 NUMBER OF CORE FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM) VERIFIED
SCORE
1
2023
2022
Number of factories with FEM verified score
Core T1
Core T2
Core L&P
Core T1
Core T2
Core L&P
A
14
12
3
8
10
2
B+
34
33
8
25
25
1
B-
9
11
2
30
22
7
C
1
3
0
2
8
2
D
1
0
0
0
0
0
Total
59
59
13
65
65
12
Number of factories
131
142
*
L&P: Labeling and packaging
1
Excluding stichd and PUMA United
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↗ T.16 NUMBER OF STICHD FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM) VERIFIED
SCORE
No. of factories with FEM verified score
stichd 2023 (FEM2022)
Core T1*
A
5
B+
15
B-
7
C
2
D
0
Total
29
*
stichd has 32 core Tier 1 factories of which 30 have completed verification. One core factory is a common factory between
PUMA and stichd and hence counted once under PUMA
Further data on the environmental performance of PUMA and our suppliers can be found in the Climate and
Environmental Key Performance Data sections.
↗ G.11 AGGREGATED VERIFIED FEM SCORE FOR PUMA FACTORIES BENCHMARKED WITH
INDUSTRY
1-3
*
Verification in 2023 is for FEM2022; Verification in 2022 is for FEM2021
1
FEM 2022 PUMA and stichd average: 160 factories
2
FEM 2021 PUMA average: 142 factories
3
Industry median FEM (6,980 factories): Filters used: Industry sector: Apparel; Footwear; Accessories (includes handbags,
jewellery, belts, and similar products) and Facility Type: Final Product Assembly; Printing, Product Dyeing and Laundering;
Material Production (textile, rubber, foam, insulation, pliable materials); Packaging Production
The Higg FEM assesses:
• Environmental Management Systems
• Energy use and greenhouse gas emissions
• Water use
• Wastewater
• Emissions to air (if applicable)
• Waste management
• Chemical management (FEM chemical module is explained under the Chemicals section of this report)
61
74
42
69
89
73
45
68
79
49
74
92
82
53
57
73
37
64
82
68
40
Total
Water
Air
WWT
Energy
EMS
Waste
FEM 2021 PUMA average
FEM 2022 PUMA & stichd average *
Industy median FEM 2022
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Since 2020, we have communicated to our core factories our expectation for them to improve their score by
setting up annual goals and using our new grading system. In 2021, 2022 and 2023 we facilitated training
sessions conducted by FEM experts. This training was compulsory for low-performance factories and for
those not familiar with this industry tool to attend. We closely monitor the factories to ensure completion of
the verification of their self-assessment.
Throughout 2023, we continued to provide customised training sessions by FEM experts for our existing core
Tier 1 and Tier 2, as well as non-core Tier 1 suppliers. The training focused on how to improve the Higg FEM
score on low-performing areas for each region. We also facilitated entry-level training sessions for factories
new to the Higg FEM tool. These trainings have helped our suppliers improve their environmental
performance as is visible from the improved average FEM score for PUMA and stichd factories moving from
61% in 2022 up to 68% in 2023. We also facilitated for our suppliers to attend webinars and workshops on
Higg FEM 4.0 to be launched in 2024, organised by SAC. In Vietnam, we facilitated for 61 factories to join the
training programme, To The Finish Line (TFL) initiative, from GIZ for building capacity to transition to Higg
FEM 4.0. The TFL initiative online sessions explained the changes made in this new tool and how to answer
new questions. 26 core factories from six countries participated in a Higg FEM 4.0 pilot initiated by SAC,
after which our suppliers provided valuable feedback to SAC on the new version of Higg FEM.
In 2023, all 131 PUMA core Tier 1 and Tier 2 factories completed the verification of their FEM self-
assessment. We have set a target to achieve an annual 10% increase of the average verified score from 2021
(the goal was to reach 64% FEM score in 2023). We exceeded this target by achieving an average FEM score
of 69%. Improvements are visible in all the sections of Higg FEM as compared to the previous year. PUMA’s
average FEM score is higher than the industry median in each section. In 2023, we included our group
company stichd’s core Tier 1 Higg FEM score. The combined average of PUMA and stichd also exceeded by
achieving the target with an average score of 68%.
The number of C-rated PUMA factories came down from 12 in 2022 to four in 2023. However, one factory in
Brazil which is a new core factory and new to FEM received a D rating. We will provide additional training
and support to improve their performance next year.
In 2023, we continued to closely track factories to ensure the timely completion of their verifications. We saw
the positive impact of our continued efforts to scale up cleaner production and renewable energy projects,
climate action training, chemical projects, chemical management training and wastewater treatment
training on the FEM scores of factories that had joined these programmes. For 2024 we have shared a goal
of an average FEM score of 71% with our PUMA core suppliers, which needs to be reviewed as the Higg FEM
will be going through a transition to Higg FEM 4.0.
Overall, our core factories have a score above 70% on wastewater, water, energy and GHG emissions, and
environment management systems. We see topics like chemicals, air and waste as a key focus. In 2021, we
conducted a risk assessment for chemical and waste and identified actions to be taken in the coming years.
PUMA, as one of the signatory brands under ZDHC, follows up closely on the development and the progress
of ZDHC air emission standards and guidelines and will apply them in the supply chain as applicable, once
details are available. In 2023, we joined the ZDHC air emission pilot which we report in the Water and Air
section of this report.
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↗ T.17 NUMBER OF NON -CORE FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM)
VERIFIED SCORE
No. of factories with FEM verified score
2023 (FEM2022) verified
Non Core T1*
A
18
B+
36
B-
36
C
15
D
4
Total
109
*
Scope for non-core FEM assessment includes only PUMA factories. Does not include stichd non-core factories.
In 2022, we rolled out FEM/Facility Environmental Foundation (FEP) which is a lighter version of FEM, to
non-core factories in our top three sourcing countries (Vietnam, China and Bangladesh) and to the factories
which are participating in the PUMA Vendor Financing Programme. As a continuation, in 2023 we rolled out
FEM/FEP to 154 of our non-core factories. The purpose is to also create a supplier scorecard for our non-
core factories.
Out of 154 factories, 141 completed the self-assessment. Out of these 141 factories, 116 factories used the
FEM tool, and 109 had their score verified by third party. 25 factories used the FEP tool, and 21 have
completed the verification. Most of our non-core facilities that had a verified FEM achieved an A or B rating,
while 15 factories got a C rating and four factories recorded a D rating. We will work with these C- and D-
rated factories to improve their performance by providing training and support in 2024.
Further data on the environmental performance of PUMA and our suppliers can be found in the Climate and
Environmental Key Performance Data sections.
SUPPLIER TRAINING
32% of supplier factories out of the total (656 factories) were provided with Higg FEM training. Currently we
are providing training to core Tier 1 and Tier 2, for which we set goals to increase their FEM score and non-
core Tier 1 factories for which we just required the use of FEM/FEP tool to measure their environmental
performance (in additional to their social performance) in 2023. We will expand the roll-out of the FEM/FEP
tool to licensee factories in the future and will include FEM training for stichd factories in 2024.
The Finish Line (TFL) training by GIZ for Higg FEM 4.0 was only available in Vietnam and hence the
percentage of total supplier factories covered is only 9%.
Similarly, the percentage of factories coverage is only 15% for sustainable material certification training, as
we currently only invite PUMA Tier 1 and core Tier 2 factories supplying recycled and other sustainable
materials/products. We need to expand the scope of this training to include all suppliers in the future to
raise awareness of recycled and other sustainable materials, as we aim at increasing the use of more
sustainable materials in our products.
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↗ T.18 SUPPLIER TRAINING
Training
Training Scope
Topics
Number of
factories
Number of
participants
% factories
which joined
Supplier meetings
All core and non-
core factories
Sustainability updates, best
practices sharing, etc.
559 average
per round
(2 rounds)
1,048
average per
round
(2 rounds)
85%*
average per
round
(2 rounds)
Higg FEM training
PUMA core and non-
core Tier 1
factories
Guiding existing factories to
improve Higg FEM score and
new factories to understand
how to complete the Higg
FEM/FEP module correctly
210
600
32%*
To The Finish Line
(TFL) - GIZ
PUMA core and non-
core factories in
Vietnam
Developing understanding
about changes in Higg FEM
4.0 and helping factories to
transition into new standard
61
294
9%*
Sustainable
Material (TE,
GRS/RCS, RWS)
PUMA Tier 1 and
Tier 2 factories
supplying recycled
and other
sustainable
materials and
products
Guiding suppliers how to
apply for relevant
certification
96
198
15%*
E-KPIs collection
training
Core Tier 1 and Tier
2 factories
in Enablon scope
For core factories how to
correctly fill in the
environmental data
75
188
77%**
*
% of factories joined the training based on total 656 factories. The 656 factories include PUMA core Tier 1 and Tier 2, non-
core Tier 1, stichd factories and licensee factories.
** % of factories joined the E-KPI training, based on a total of 98 factories which are in scope to submit E-KPIs.
↗ CASE STUDIES
Improvement in HIGG FEM Verified score
Being a longtime partner to PUMA, Royal Footwear Group is producing PUMA products at three
factories in Vietnam (Dai Loc Shoes, Sao Viet & Thien Loc Shoes). These three factories actively
participated in different trainings on all sections of Higg FEM provided by PUMA and its training
partner GIZ, and engaged in active consultation with PUMA’s Sustainability Team on its Performance
Improvement Plan. As a result, these three factories significantly improved their verified Higg FEM
total scores as compared to last year. Dai Loc increased its total verified score from 56% to 76%, Sao
Viet from 40% to 77%, and Thien Loc from 46% to 75%. Significant improvements were made in
sections like Environmental Management System, Chemical Management and Air Emissions.
THE INSTITUTE OF PUBLIC & ENVIRONMENTAL AFFAIRS (IPE) IN CHINA
PUMA is actively engaged with The Institute of Public & Environmental Affairs (IPE) which is a non-profit
environmental research organisation based in Beijing, China. IPE is involved in collecting, arranging and
analyzing government and corporate environmental information to build a database of environmental
information. IPE has developed a database called Blue Map and an online platform called BlueEcochain and
both are interconnected. Powered by IPE's Blue Map Database and AI technology, Blue EcoChain platform
provides an efficient means of supply chain oversight for environmental risks in China. Blue EcoChain
enables PUMA to track its suppliers in China for environmental compliance at scale, and sends automated
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updates on regulatory violations and environmental remediation, as well as carbon emission and pollutant
data disclosure continuously on a large scale.
Since 2013, PUMA has used IPE’s Blue Map database to screen its China supply chain and pre-screen its
potential new factories for any legal environmental violation and requires suppliers to improve on their
environmental performance. PUMA also discloses its local supplier list via the IPE supply chain map
platform. In these years, PUMA engaged and influenced its Tier 1 factories in China and their upstream
suppliers, e.g. core Tier 2 and selected Tier 3 suppliers, chemical suppliers, centralised wastewater
treatment plants, solid waste contractors, logistics partners, etc. to join “Blue EcoChain” to monitor and
disclose their own environmental performance. These disclosures include their Pollutant Release and
Transfer Register (PRTR) data, carbon emissions, targets for carbon emissions, and water consumption
reduction. PUMA worked with its core Tier 1 and Tier 2 factories to reduce their greenhouse gas emissions
and encourage them to disclose their action taken and progress made on the IPE platform.
Through the Blue EcoChain platform and engagement with IPE, PUMA influenced its Tier 1 suppliers and
their upstream suppliers to promptly issue public explanations regarding the reason for any environmental
violations and encouraged them to adopt corrective actions and track their implementation. This
supports PUMA Tier 1 factories in China to engage with their upstream suppliers for better practices and
promote transparency.
Since 2021, PUMA published its actions annually on the Brand Stories IPE webpage to communicate to the
public in China about PUMA's activities related to environmental protection.
2023 PUMA CITI & CATI RATINGS
PUMA participated in the first CITI (Corporate Information Transparency Index)
campaign in 2014 and first CATI (The Corporate Climate Action Transparency
Index) campaign in 2018 to score and rank PUMA’s environmental management
and climate action.
In 2023, PUMA jumped seven places compared to 2022 and was ranked number five in CITI out of 742
brands. In the CITI 2023 rating, PUMA did well in responsiveness to inquiries and engagement with IPE,
supply chain transparency, environmental compliance and corrective actions for any violations, energy
conservation and GHG emission reduction. PUMA’s strength is also in publicly disclosed targets on low
carbon and recycled products.
PUMA also jumped four places to be ranked number two in CATI out of 1,504 brands. In this rating, PUMA
climate governance such as policy and board accountability, Scope 1, 2 and 3 emissions and progress
disclosure and targets, as well as product carbon footprint disclosure and disclosures on decarbonisation
actions of our value chain was evaluated as strong areas by IPE. Disclosure of climate action by affiliated
companies, such as the PUMA subsidiary in China, was identified as a major improvement area. Other
improvement areas include the disclosure of our performance against PUMA’s net-zero target and our
action to decarbonize our own operations such as PUMA offices, stores and warehouses.
The details on our climate actions are provided in the Climate section of this report.
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CLIMATE
1OFOR25 TARGETS
• Align PUMA’s CO2 emissions target with a 1.5-degree scenario (that is, what is required to limit global
warming to 1.5 degrees)
• Move 100% of PUMA’s own entities to renewable electricity
• Expand the use of renewable energy at PUMA’s core suppliers to 25%
TARGET DESCRIPTION:
Old science-based CO2 emission target from 2019 aligned to well below 2 degrees:
• Reduce greenhouse gas emissions from PUMA’s own entities (Scope 1 and 2) by 35% by 2030 compared
to the 2017 baseline (absolute reduction)
• Reduce emissions from PUMA’s supply chain (Scope 3: Purchased goods and services) by 60% relative to
sales
New and 1.5 degree aligned science-based CO2 emission reduction target (approved 2023):
• Reduce absolute Scope 1 and 2 greenhouse gas emissions by 90% by 2030 from a 2017 base year
• Continue active annual sourcing of 100% renewable electricity through 2030
• Reduce absolute greenhouse gas emissions from purchased goods and services and upstream
transportation and distribution by 33% by 2030 from a 2017 base year*
*
Target boundary includes land-related emissions and removals from bioenergy feedstocks
Relates to United Nations Sustainable Development Goals 7 and 13
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Work with industry peers on climate action through the Fashion Industry Charter for Climate Action and
the Fashion Pact
• Join industry-level energy efficiency programmes for suppliers in our top five sourcing regions
• Join industry-level programmes for renewable energy in our top five sourcing regions
• Replace all coal-fired boilers at PUMA’s core suppliers
• Reduce emissions from the transport of goods by transitioning to more carbon-efficient modes of
transport
• Gradually transition to materials with a lower carbon footprint such as recycled polyester
• Switch all PUMA offices, stores and warehouses to renewable electricity tariffs or renewable energy
attribute certificates
• Gradually move PUMA’s fleet vehicles to alternative engines (electric or hydrogen)
KPIs:
• Direct CO2 emissions from own entities (Scope 1*)
• Indirect CO2 emissions from own entities (Scope 2*)
• Indirect CO2 emissions from manufacturing, business travel and transport of goods (Scope 3*)
• Percentage of core suppliers covered by energy efficiency programmes
• Percentage of core suppliers covered by renewable energy programmes
• Percentage of core suppliers with coal-fired boilers (Tier 1 and Tier 2)
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*
The GHG Protocol Corporate Standard classifies a company's GHG emissions into three scopes:
•
Scope 1: Direct GHG emissions from sources that are owned or controlled by the company (offices, stores, warehouses)
e.g. office building heating, car fleet emissions.
•
Scope 2: Indirect GHG emissions from the generation of purchased electricity, steam and heating/cooling consumed by
the company
•
Scope 3: All other indirect emissions not covered in Scope 2, such as extraction and production of purchased materials;
transportation of purchased goods and use of sold products and services, business travel, employee commuting, etc.
During the UN Climate Conference in Paris in 2015, PUMA agreed to set a science-based CO2 emissions
target. In 2018 PUMA co-founded the Fashion Industry Charter for Climate Action, an industry-wide coalition
that aims to align the fashion industry’s emissions with the targets included in the Paris Agreement. One
year later, PUMA agreed and published its first science-based emission target (SBT), which was aligned to a
well below 2-degree emission scenario with the SBT Coalition and joined the Fashion Pact, which also
includes a climate action commitment.
With an 85% reduction of own emissions (market-based, incl. the purchase of RECs) and a 65% reduction of
supply chain emissions relative to sales, we achieved our first science-based greenhouse gas reduction
target in 2023, seven years ahead of the target year 2030.
In 2022, we already prepared an updated and more ambitious science-based greenhouse gas reduction target
and aligned the target with a 1.5-degree scenario. We also published a net zero target for 2050 and added a
100% renewable electricity target to our SBT proposal since we already committed to net zero GHG emissions
and 100% renewable electricity as part of our Fashion Industry Charter for Climate Action engagement. Our
updated science-based target was formally submitted to and approved by the SBTi in 2023.
With a 90% absolute reduction target for PUMA's own operations by 2030, the new target sets a much higher
ambition level for Scope 1 and 2 emissions, after the first target of 35% reduction had already been achieved
in 2020, mainly through the purchase of renewable energy and renewable energy attribute certificates. The
SBTi has classified PUMA Scope 1 and 2 targets as in line with a 1.5-degree trajectory.
For Scope 3 emissions, the new 2030 target marks the transition from a target relative to sales (-60%) to an
absolute reduction target of 33%. Given PUMA's strong growth rates, the new target could even be
considered more ambitious.
TRANSITION PLAN TOWARD OUR 2030 SCIENCE-BASED GHG REDUCTION TARGET
During the year 2023, PUMA also developed and published its first climate transition plan. The plan lists the
planned actions and investments toward hitting our 2030 climate targets.
In 2023, PUMA’s Chief Sourcing Officer joined Zero 100, a membership-based research and intelligence
organisation, to accelerate progress on Digital Supply Chain Transformation and the path to zero carbon
emissions. Forward-thinking Chief Operations and Supply Chain Officers of international companies partner
up, sharing a common purpose – to harness new technology to re-invent the production, distribution
and consumption of physical goods around the world.
PUMA CDP CLIMATE SCORE: A
The Carbon Disclosure Project (CDP) is an investor-led coalition that ranks global companies and cities for
their climate strategies and disclosure. PUMA has been a long-term participant in the CDP, and we make
our responses to the CDP questionnaire publicly available via the CDP website. In 2022, for the first time in
PUMA’s history, we received an A score for our climate disclosure with CDP for the reporting year 2021. Until
the end of January 2024, we retained our A score.
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↗ G.12 PUMA CDP CLIMATE SCORES
↗ G.13 2022 CDP INDUSTRY AND GEOGRAPHICAL AVERAGE
PUMA’s rating is better than the average performance of the sector (textile and fabric goods) with an
average rating of B. The overall global average rating stands at C.
Over the last two years, we have made significant improvements in value chain engagement, Scope 3
emissions, risk management processes and risk disclosure, leading to the highest possible rating of A. Our
score increased as a result of a host of initiatives taken, including facilitating climate training programmes
for our suppliers, the participation of our suppliers in industry-wide resource efficiency and renewable
energy programmes, participation in Higg FEM, the recalculation of Scope 3 emissions, in line with the
greenhouse gas protocol, life cycle assessments (LCA) for our products, the preparation of a climate
roadmap for 2030 and a risk assessment.
For more information, please visit the PUMA sustainability website or the CDP website.
CLIMATE ROADMAP AND RISK ASSESSMENT
In 2021 we developed a climate roadmap and conducted a risk assessment using our risk assessment
methodology. This roadmap laid the foundation for our climate transition plan, which was published in 2023.
We see a regulatory landscape with unfavourable policies for renewables in some countries as a high risk.
Furthermore, unstable business in our industry overall can restrain suppliers from investing in technologies
and upgrading their facilities with low-carbon machinery.
Below are some key focus areas for the coming years. Some actions taken since 2021 and continued in 2023
are covered in this report.
• Raise awareness: We realised that suppliers need specific training to achieve the ambitious renewable
energy targets and that challenges vary from region to region. We facilitated certain training
programmes in partnership with industry experts as per the needs of suppliers, such as the possibility of
purchasing renewable energy certificates in various regions. In 2023, we launched a new capacity
development programme, called Supplier Leadership on Climate Transition (LOCT), to enable selected
suppliers to set and achieve Science Based Targets. Our suppliers continued to attend the GIZ Climate
Training programme at their own pace in 2023. The details of these training sessions are provided in the
table in “Climate Training 2023”.
• Knowledge of impact: In 2023, we continued to conduct Life Cycle Assessments (LCA) for two top-selling
products. We also conducted a comparative LCA of three types of polyester team sports jerseys to
evaluate the environmental impacts of virgin polyester, recycled polyester made from PET bottles and
recycled polyester made from recycled post-consumer waste and PET bottles. We also conducted a
comparative LCA study of the environmental impacts of virgin cotton and blended cotton (75% virgin and
25% recycled). We intend to use the outcomes of these LCA studies to increase internal awareness and
improve the products' carbon footprint by increasing the use of low-carbon materials, improving
resource efficiency, optimizing energy use, promoting renewable energy in the value chain and
enhancing the circularity of our products. LCA results are reported in the Products section of this report.
C
2017
B-
2018
B
2019
B
2020
A-
2021
A
2022
A
2023
B
Textiles & Fabric
B
Europe
C
Global Average
Average Performance
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• Internal action: We reviewed factories’ performance scorecards in 2023 based on their Higg FEM overall
score and chemical score with our sourcing leaders. We also discussed with suppliers about their
performance through one-to-one meetings and aligned on the next steps. We initiated a pilot to test a
data platform, which will help us to measure progress more frequently. We will keep our focus on
increasing the use of recycled materials in our products and explore opportunities to use more
biosynthetic materials. In 2023, PUMA upgraded its near-term science-based emissions reduction target
which includes our Scope 1 and Scope 2 emission targets in line with a 1.5-degree Celsius trajectory. We
continue to enroll more factories in cleaner production programmes and renewable energy
programmes. In 2023, the number of core factories with coal-fired boilers reduced from 21 in 2022 to 17
due to our business priorities that implied the revision of our core factory list. Two factories out of 17
have successfully phased out coal and 11 factories have partially replaced coal. The remaining four
factories completed a feasibility study and will initiate replacement in 2024. We remain committed to
phasing out coal from our core supply chain.
• Collaboration and partnership: We will keep our active engagement in the Fashion Charter to drive
collaboration on climate actions and influence policymakers to enable access to affordable renewable
energy. In 2023, we participated in a dialogue event organised by UN Fashion Charter with Bangladesh
policymakers on renewable energy policy.
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
Climate change has been a focus area for PUMA since the publication of the first Environmental Profit and
Loss Account in 2011. As a long-term and A-ranked respondent of the investor-led CDP questionnaire and a
founding member of the UN Fashion Industry Charter for Climate Action, PUMA has shown its commitment
to combatting climate change. Subsequently, we recognise the importance of disclosing climate-related
risks and opportunities in line with the recommendations of the TCFD, which are now being transitioned into
the IFRS standards.
The success of our business over the long term will depend on the social and environmental sustainability
of our operations, the resilience of our supply chain and our ability to manage the potential impact of
climate change on our business model and performance.
Through the implementation of the recommendations set by the TCFD, we summarize the actions PUMA
has taken to review its key climate-related risks and opportunities, and the potential impacts on its business
and strategy.
GOVERNANCE
The PUMA Board of Management takes overall accountability for the management of all risks and
opportunities, including climate change. PUMA’s CEO is responsible for the overall oversight of the group’s
strategy, including the Sustainability Strategy. This includes climate-related targets as stated in PUMA’s
10FOR25 sustainability targets. Besides the oversight of the CEO, PUMA’s Chief Sourcing Officer (CSO)
oversees all sustainability-related topics at PUMA, including climate change, at the management board
level. Responsibilities of the CSO include approving new climate-related targets, strategies and initiatives.
Sustainability falls under the scope of the CSO because the vast majority of the environmental impact of
PUMA’s activity is generated during the manufacturing of our products, which are sourced from
independent third-party vendors. Therefore, to reduce our climate impact, our Sustainability Strategy needs
to be driven through our supply chain into our vendors’ factories and into the components we procure.
Responsibility for these two activities lies with the CSO.
The Supervisory Board Sustainability Committee is handling sustainability at a Supervisory Board level. The
Management Board receives updates on sustainability-related matters quarterly, including those related to
climate change. The CSO has a monthly meeting with the sustainability leads for corporate and supply chain
sustainability in which climate and all other sustainability-related topics are governed. The Executive
Sustainability Committee meets twice a year to discuss and govern cross-functional sustainability-related
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topics, like the sustainability bonus targets. It is comprised of all functional heads of the company, such as
People & Organisation, Sourcing, Finance, IT, Marketing, Risk Management, Investor Relations, Retail,
Logistics and Legal Affairs. Sustainability at a product level is governed in a cross-functional business units
call, where updates on PUMA’s more sustainable product strategy are shared and discussed monthly. To
engage with PUMA’s worldwide subsidiaries on climate change and other sustainability-related topics, the
corporate sustainability department organises a quarterly call in which the nominated sustainability leads
for each PUMA subsidiary take part.
All PUMA leaders globally – from CEO to Team Head level – have clearly defined sustainability targets as
part of their annual performance bonus. These targets are aligned with PUMA’s FOREVER. BETTER.
Sustainability Strategy and focus on our 10FOR25 target areas, including climate change. Climate-related
bonus targets include a reduction in air freight to 0.5% as well as a gradual shift of PUMA’s car fleet to zero
or low-emission vehicles. Targets on recycled polyester also support our Scope 3 GHG reduction. The
targets cover 10% of the overall bonus for members of the Management Board and 5% for other leaders
globally., with climate-related targets accounting for 2,5% and 1.25% respectively.
Our sustainability governance structure is referenced in the Sustainability Organisation and Governance
Structure section.
STRATEGY AND RISK MANAGEMENT
PUMA has analysed risks and opportunities related to climate change for over 10 years and identified
climate change as a material risk to PUMA during its last materiality analyses conducted in 2018 and 2023.
Climate Change has the potential to impact PUMA’s business in the short (0-2 years), medium (2-5 years)
and long term (5-10 years). The climate-related risks can be grouped into physical risks and transitional
risks. Physical risks for PUMA include extreme weather events, such as flooding or heat waves, or water
scarcity, which can influence raw material availability. Transitional risks include all risks related to the
transition to a low-carbon economy, such as changing consumer preferences, policies and regulations, such
as carbon taxes or rising energy prices.
The process for assessing, identifying and managing climate-related risks is the same for all principal risks
and is described in the Risk Management section. All risks are monitored and reported regularly
throughout the year by the risk owners, who are the managers of the functional areas and the managing
directors of the subsidiaries. The risk owners are also responsible for the operational management of the
identified risks. For example, climate risks concerning manufacturing in the supply chain are managed by
PUMA’s Supply Chain Sustainability team.
To identify the impact of potential climate-related risks, a scenario-based analysis of climate-related risks
was commenced in 2022 (see G.16). The analysis is in line with TCFD recommendations by taking into
consideration two different climate-related scenarios: first, to analyse transitional risks, the Net Zero
Emissions by 2050 Scenario (NZE) developed by the IEA was considered. This scenario represents the
development of a low-carbon economy in line with global warming of 2°C or lower. It was also used to
develop our 1.5°C aligned science-based target, which was submitted at the beginning of 2023. Second, the
impact of physical risks was assessed using the SSP2 – RCP4.5 scenario. This scenario relies on the
Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs) published by
the IPCC and reflects the development of greenhouse gas emissions under current government policies,
resulting in warming of about 2.7°C by 2100 (per Climate Action Tracker). The different risk categories
shown in G.16 are taken from our CDP 2023 response.
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↗ G.14 SCENARIO-BASED RISK ANALYSIS ALIGNED WITH TCFD RECOMMENDATIONS
Climate-related risks and opportunities have influenced PUMA’s strategy in multiple areas. The demand for
more sustainable products has influenced our product portfolio and sourcing practices to shift towards
recycled and/or certified materials. On the supply chain side, PUMA invests in supplier programmes
focused on energy efficiency and renewable energy to reduce the carbon footprint of its manufacturing
process. PUMA is investigating and investing further in more sustainable material options, such as
biodegradable or recyclable materials. Additionally, PUMA operates its Circular Lab, under which it
collaborates with innovation partners on different pilot projects, such as a garment-to-garment recycling
process and a biodegradable shoe. Within its own operations, PUMA reduces its carbon footprint by
sourcing 100% renewable electricity since 2020 and by gradually shifting its car fleet to low- and zero-
emissions vehicles.
Climate-related issues also had an impact on PUMA’s financial planning. Direct costs have been influenced
by ESG-linked supplier financing programmes that have been in place since 2016. The programme provides
access for PUMA suppliers to external financing resources with favourable financing conditions.
Additionally, as part of the EU Taxonomy Regulations, PUMA is required to report on capital expenditures
that lead to greenhouse gas reductions. PUMA’s sales are currently not eligible under the EU Taxonomy
Regulation due to the nature of PUMA’s business (sale of footwear and apparel). In 2023, PUMA identified
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investments in zero-emissions vehicles and infrastructure such as charging stations as well as solar PV
installations to be aligned with Taxonomy criteria. The overall Taxonomy-aligned investment amounts to
EUR 910,000. Further information on the EU Taxonomy can be found in the Reporting in Accordance with the
EU Taxonomy Regulation section. Sustainability also influences PUMA’s access to capital as it becomes an
increasingly important topic for attracting equity and investors. In 2023, PUMA received an AAA rating from
MSCI for its sustainability efforts. PUMA is also listed in the FTSE4Good Index. Our Investor Relations and
Sustainability teams are in an ongoing dialogue with investors on ESG topics. PUMA maintains a revolving
credit facility and two promissory notes, which are linked to the achievements of five ESG targets as defined
within our 10FOR25 ESG framework. The targets relate to the sourcing of renewable electricity (climate),
sourcing of materials from certified sources (biodiversity), reduction of water consumption at core suppliers
(water and air), elimination of plastic bags in stores (plastics and the oceans) and community engagement
(human rights).
The results of our scenario analysis are used to ensure the necessary mitigating controls are in place,
support PUMA’s risk management activities and inform future business strategies. We will update our
scenario modeling as more climate data becomes available and regularly reframe the risks and
opportunities to PUMA presented by climate change.
METRICS AND TARGETS
PUMA has been measuring and reporting environmental key indicators for its own operations and its T1 and
T2 suppliers for many years, including energy consumption, carbon emissions, water consumption and
waste management. These are part of the Sustainability section of its Annual Report, which is published
annually and audited by a third party.
PUMA aligns its reporting on climate-related metrics with recognised standards, including the GHG Protocol.
In addition, our 10FOR25 sustainability targets include absolute carbon reductions, renewable energy
procurement and manufacturing of more sustainable products. Further information on our environmental
KPIs can be found in the Environmental Key Performance Data section and throughout this report.
Sourcing 100% renewable electricity for all PUMA entities from 2020 is one of the milestones of PUMA’s
climate change mitigation efforts. For its suppliers, PUMA has a target of sourcing 25% renewable energy
by 2025 (2023: 22.1%). During 2023, our 1.5 degree aligned near-term SBT was approved by the Science
Based Target Initiative: reducing absolute Scope 1 and 2 GHG emissions by 90% (market-based*, including
the purchase of RECs) by 2030 and reducing absolute Scope 3 GHG emissions by 33% by 2030, both from a
2017 baseline year.
• Scope 1 and 2 targets focus on GHG emissions from our direct operations (including electricity and gas
consumption at our stores, offices, internal manufacturing and distribution centres)
• Scope 3 targets relate to indirect GHG emissions in our extended supply chain and the transportation of
finished goods
By the end of 2023, PUMA had already reduced its combined Scope 1 and 2 emissions by 85% and its Scope 3
emissions from purchased goods and services and transportation by 28%. Our efforts in sourcing more
sustainable materials led to 99.2% cotton, 99,7% leather and 85% polyester coming from recycled or
certified sources and eight out of ten products being more sustainable in line with our internal definition. We
also reduced our GHG emissions from materials by 50%.
*
A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission
factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of
energy bundled with attributes about the energy generation, or for unbundled attribute claims.
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As part of its commitment to the UN convened Fashion Industry Charter for Climate Action, and according to
PUMA’s Environmental Handbook, PUMA declared its ambitions to meet a net zero 2050 goal. PUMA
recognises that meeting its climate-related targets is dependent on collective action and focus. Improving
the market conditions for clean energy supply, such as the rate of installation of renewable electricity in
many countries, reducing costs and the availability of power purchase agreements (PPAs) will help shift the
rate of decarbonisation at scale. PUMA believes it has a role to play in helping to shape the policy and
regulations required and is working collaboratively with partners, suppliers and other organisations to
achieve its ambition, including the United Nations Global Compact, the UN Fashion Industry Charter for
Climate Action, the Fashion Pact and Stiftung Klimawirtschaft. PUMA met with representatives of the
delegations of Bangladesh, Indonesia and Vietnam during the UN COP 28 climate conference to promote the
further expansion of renewable energy in those countries.
SCOPE 1 EMISSIONS
Our own direct CO2 emissions (Scope 1) are mainly caused by emissions from our PUMA car fleet and
airplane, as well as emissions from the heating of buildings. We are tackling the emissions from our car
fleet by gradually transitioning to zero-emission vehicles in those countries where the charging
infrastructure is mature enough to support the transition. Starting in 2023, only electric vehicles are allowed
as new additions to our car fleet in the region of Germany, Austria and Switzerland, which includes our
Headquarters and 242 cars. At the end of 2023, 319 out of 905 cars (35%) globally were already low or zero -
emission battery electric or hydrogen fuel cell cars, in line with our bonus target of hitting 30%.
We also significantly expanded the charging infrastructure at our headquarters and selected other offices
and now have over 75 charging stations in operation, including twelve public charging stations at our
headquarters stores that can be used by employees, business partners and customers free of charge.
For the heating of buildings, we use natural gas in 8% of buildings globally and plan to transition these
buildings to biogas or other renewable heat sources over time. Many PUMA buildings globally already use
(renewable) electricity for heating.
Overall we were able to reduce our Scope 1 GHG emissions by 17% between 2017 and 2023, and plan to
reduce these emissions further by 2025.
SCOPE 2 EMISSIONS
PUMA’s indirect GHG emissions (Scope 2) are caused by the electricity used for running our offices, stores
and warehouses, including the charging of electric cars, as well as thermal energy used from district
heating.
All of our offices, stores and warehouses have used renewable electricity via green electricity tariffs or
renewable energy attribute certificates since 2020. This has led to a significant reduction of our Scope 2
emissions (market-based). In addition, the closure of our stores in Russia, which were mostly heated by
district heating, contributed further to the reduction of Scope 2 emissions. At our headquarters, which is by
far the largest consumer of district heat among all PUMA entities, the district heat is created in co-
generation with electricity and by using over 50% biogas. In total, we were able to reduce our Scope 2
emissions by 99% (market-based, incl. the purchase of RECs) since 2017.
Further actions to reduce PUMA’s own greenhouse gas emissions include the use of energy-efficient heat
pumps at our headquarters, frequent energy efficiency audits at our stores, a free public transport ticket for
employees, job-bike-leasing and a meat-free Monday at canteens.
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↗ T.19 SCOPE 1 AND SCOPE 2 CO2e EMISSIONS FROM PUMA
1-4
CO2e Emissions1-8 (t)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Scope 1 – Direct CO2e-
Emissions Fossil fuels*
6,403 6,206 4,456 4,179 6,326 7,678
3%
-17%
Vehicle Fleet
2,639 2,264 2,008 1,985 3,618 4,134
17%
-36%
Heating
1,336 1,536 2,039 2,194 2,708 3,545
-13%
-62%
Air Plane*
2,428 2,405 410 689 2,359
-
1%
Scope 2 – Indirect CO2e
Emissions (location-based)
41,679 35,528 32,545 29,839 40,986 40,029
17%
4%
Scope 2 – Indirect CO2e
Emissions (market-based)
530
643 1,458 1,078 11,533 40,029
-18%
-99%
Electricity (location-based)
41,149 34,885 31,087 28,761 39,282 38,914
18%
6%
Electricity (market-based)
- - - - 9,828 38,914
-100%
District heating
530 643 1,458 1,078 1,705 1,115
-18%
-52%
Total Scope 1-2 (location-
based)
48,082 41,734 37,001 34,018 47,312 47,707
15%
1%
Total Scope 1-2 (market-
based)
6,933 6,849 5,914 5,257 17,859 47,707
1%
-85%
Scope 1-2 Relative to Sales (t
CO2e per € million sales)
(location-based)
5.6
4.9
5.4
6.5
8.6
11.5
13%
-51%
Scope 1-2 Relative to Sales (t
CO2e per € million sales)
(market-based)
0.8
0.8
0.9
1.0
3.2
11.5
0%
-93%
*
In 2022, Scope 3 Upstream Leased Assets was restructured. Previously, this category included the emissions from PUMA Air
Plane and well-to-tank emissions from PUMA Vehicle Fleet. Now, in line with GHG Protocol, emissions from PUMA Air Plane
are included in Scope 1, well-to-tank emissions from PUMA Vehicle Fleet are included in Scope 3 Fuel- and energy-related
activities and Scope 3 Upstream Leased assets includes the emissions from warehouses in PUMA’s value chain that are
operated by a third party.
** A location-based method reflects the average emissions intensity of grids on which energy consumption occurs.
*** A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission
factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of
energy bundled with attributes about the energy generation, or for unbundled attribute claims. PUMA has purchased such
Energy Attribute Certificates in 2023.
1.
PUMA’s greenhouse gas reporting is in line with the GHG Protocol International Accounting Standard. Fugitive emissions
(emissions from unintentional releases or leaks) are not included in Scope 1 emissions.
2. Methodological changes over the last three years have influenced results. In 2020 updated emission factors were applied
and the consolidated structure changed due to full alignment with the GHG Protocol.
3. The consolidation scope follows the operational control approach, including PUMA-owned or operated offices, warehouses,
stores and own industrial sites (Argentina).
4. PUMA applied emission factors from internationally recognised sources, such as the International Energy Agency (IEA)
(2019) and DEFRA conversion factors (2020).
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↗ G.15 AGREED EMISSION TARGETS (SCOPE 1 AND 2*) (T CO2e) 2023
*
Including renewable energy attribute certificates
↗ T.20 E-KPIS PUMA – ENERGY
1-3
Energy (MWh)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Total energy from electricity
87,267
75,269
67,866
61,365
61,499
64,119
16%
36%
Non-renewable electricity
consumption
0
0
0
0
12,683
52,508
-
-100%
Electricity consumption from
renewable sources (green tariffs and
on-site photovoltaic)
16,032
15,697
13,749
10,839
11,547
11,611
2%
38%
Percentage of renewable electricity
consumption (excluding EACs)
18%
21%
20%
18%
16%
18%
Electricity consumption guaranteed
with EACs
71,235
59,572
54,117
50,526
37,269
0
20%
-
Percentage of renewable electricity
consumption (including EACs)
100%
100%
100%
100%
79%
18%
Total energy from non-renewable fuels
(oil, natural gas, etc.)
6,555
7,541
10,006
10,739
10,975
14,430
-13%
-55%
Total energy from district heating
4,828
5,483
10,795
6,247
7,915
5,155
-12%
-6%
Total energy consumption (PUMA own
entities)
98,651
88,462
88,666
78,350
80,389
83,704
12%
18%
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimates where no real data could be provided.
3
Methodological changes over the last three years have influenced results.
2015
2018
2021
2024
2027
2030
50,000
40,000
30,000
20,000
10,000
0
PUMA‘s emission reduction
1.5 °C pathway
Well-below 2 °C pathway
Approved SBT
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SCOPE 3 EMISSIONS
↗ T.21 PUMA’S SCOPE 3 CO2E EMISSIONS FROM SELECTED VALUE CHAIN ACTIVITIES
1-6
CO2e emissions (t)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Scope 3 – Indirect CO2e
Emissions from
corporate value chain
1,089,971 1,430,690 1,355,633 1,486,324 1,762,087 1,502,162
-24 %
-27 %
Purchased goods and
services*
991,864
1,278,758
1,242,468
1,389,335
1,631,904
1,409,265
-22 %
-30 %
Fuel- and energy-
related activities**
4,736
4,220
3,700
3,463
3,712
7,433
12 %
-36 %
Upstream
transportation and
distribution
70,412
127,474
106,983
91,775
107,744
71,070
-45 %
-1 %
Inbound
47,812
99,724
85,622
67,842
98,386
64,076
-52 %
-25 %
Outbound***
22,600
27,750
21,361
23,933
9,358
6,994
-19 %
223 %
Business travel
11,499
9,439
2,482
1,751
18,727
14,394
22 %
-20 %
Upstream leased
assets**
11,460
10,799
6 %
-
Total Scope 1-3
(market-based)
1,096,904 1,437,609 1,362,482 1,492,238 1,767,344 1,549,869
-24 %
-29 %
Annual Sales PUMA
(in € million)
8,602
8,465
6,805
5,234
5,502
4,136
2 %
108 %
Total Scope 1-3 Relative
to Sales (t CO2e per €
million sales) (market-
based)
127.5
169.8
200.2
285.1
321.2
374.7
-25 %
-66 %
Total Scope 3 Relative
to Sales (t CO2e per €
million sales)
126.7
169.0
199.2
284.0
320.3
363.2
-25 %
-65 %
*
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed higher accuracy and higher precision compared to other methods, such as
averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit) from the 12
months of data spanning from November 2021 to October 2022.
** In 2022, Scope 3 Upstream Leased Assets was restructured. Previously, this category included the emissions from PUMA Air
Plane and well-to-tank emissions from PUMA Vehicle Fleet. Now, in line with GHG Protocol, emissions from PUMA Air Plane
are included in Scope 1, well-to-tank emissions from PUMA Vehicle Fleet are included in Scope 3 Fuel- and energy-related
activities and Scope 3 Upstream Leased assets includes the emissions from warehouses in PUMA’s value chain that are
operated by a third party.
*** In 2020, upstream outbound values were adjusted to fully cover the e-commerce business and exclude B2B express volumes.
1.
PUMA’s greenhouse gas reporting is in line with the GHG Protocol International Accounting Standard. Fugitive emissions
(emissions from unintentional releases or leaks) are not included in Scope 1 emissions.
2. Methodological changes over the last three years have influenced results. In 2020 updated emission factors were applied
and the consolidated structure changed due to full alignment with the GHG Protocol.
3. The consolidation scope follows the operational control approach, including PUMA-owned or operated offices, warehouses,
stores and own industrial sites (Argentina).
4. Outsourced Tier 1 production is accounted for in the Scope 3 emissions under purchased goods and services, covering CO 2
emissions from all three product divisions (Accessories, Apparel and Footwear).
5. PUMA applied emission factors from internationally recognised sources, such as the International Energy Agency (IEA)
(2019) and DEFRA conversion factors (2020).
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6. For sea freight transportation, PUMA follows the recommendation and new methodology of the Clean Cargo Working Group
that has transitioned from the use of tank-to-wheel (TTW) CO2 to well-to-wheel (WTW) CO2-equivalent emission factors for
all fuels.
GREENHOUSE GAS EMISSIONS FROM PURCHASED GOODS AND SERVICES
PUMA is determined to reduce its carbon emissions, water usage, waste and air pollution at its offices and
in its supply chain. For materials, PUMA strives to use more sustainable materials, such as cotton,
polyester, leather and cardboard.
The purpose of PUMA’s environmental efforts is to ensure that its suppliers are in full environmental
compliance and any negative impact on the environment is reduced. Ultimately, our goal is to achieve a
positive environmental impact. We ask all of our core suppliers to complete the Facilities Environmental
Module developed by the SAC.
For climate, PUMA’s 10FOR25 action plan includes steps such as:
• Work with industry peers on climate action through the Fashion Industry Charter for Climate Action and
the Fashion Pact.
• Joining industry-level energy efficiency programmes for suppliers in our top five sourcing regions.
• Joining industry-level programmes for renewable energy in our top five sourcing regions.
• Replacing all coal-fired boilers at PUMA’s core suppliers.
• Gradually transitioning to materials with a lower carbon footprint, such as recycled polyester.
To reduce the emissions from the production of our PUMA products, we worked with our suppliers on
programmes ranging from energy efficiency to installing on-site solar photovoltaic power plants to generate
renewable energy.
The reduction of our Scope 3 emissions at the factory level is complemented by using more sustainable
(less carbon-intensive) raw materials. In 2023, we used 85% more sustainable polyester, of which 61.8% was
recycled polyester; 99.2% more sustainable cotton, mainly from the Better Cotton Initiative (BCI) and 99.7%
leather from Leather Working Group medal-rated tanneries. In addition, 99.4% of our paper and cardboard
packaging was recycled or FSC-certified paper. By 2025 we aim to use 75% recycled polyester and 100%
recycled and/or certified paper and cardboard.
Supplier Training and Programme
In 2021, PUMA joined hands with other brands and key suppliers under the UN-led Fashion Industry Charter
for Climate Action to develop a standard training programme on climate action for apparel and footwear
suppliers in Asia, in partnership with GIZ. This online training programme provides foundational knowledge
for suppliers on global decarbonisation efforts, GHG emissions accounting, climate target-setting
methodology and solutions to reduce emissions and achieve these targets. The training is available in
English and other local languages such as Khmer, Mandarin, Bengali and Vietnamese. We encouraged our
suppliers to participate in this training, available free of charge.
The training provides foundational knowledge to suppliers on:
• Understanding global decarbonisation efforts
• How to account for GHG emissions
• How to implement available energy solutions to reduce emissions
In 2023, we continued to encourage factories to join the GIZ’s Climate Action Training. 57 participants from
42 factories completed the course and attempted the final exam. 100% of the participants successfully
passed the exam and obtained the certificate from GIZ, with an average score of 75%. Since 2021, 933
participants from 284 factories have completed this course.
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In 2023, we provided training to our suppliers on Science Based Target setting, renewable energy
procurement through RECs, carbon trading and energy efficiency. This climate-related training helped to
accelerate the implementation of rooftop solar projects, increase the purchase of renewable energy
attribute certificates and initiate coal phase-out measures. The progress made in these areas are described
in this report.
In 2023, we approached 21 selected supplier groups representing 40-50% of our business volume to suggest
that they set Science-Based Targets at a company level (covering all of their factories, including the ones
not producing for PUMA). In March 2023, 19 out of these 21 suppliers agreed to set up SBT; one supplier
declined, and one supplier already had an approved target. In October 2023, we engaged with Guidehouse to
launch the Supplier Leadership On Climate Transition (LOCT) capacity development programme. The
programme provides a web-based platform to learn and implement a step-by-step approach for
setting Science Based Targets and guidance on how to achieve those targets. Nine suppliers registered to
join this programme in 2023. However, only eight suppliers joined, since one supplier selected a training
available only after a supplier has set SBT. This supplier will join the programme in 2024. We expect more
suppliers to join in early 2024. We do not expect all 20 suppliers to join this programme, since some
suppliers have the required expertise in-house or are already engaged with a consultant to support them.
The renewable energy procurement training conducted by Monsson Carbon for Vietnam, Cambodia,
Indonesia and the Philippines focused on how to procure energy attribute certificates such as iRECs, while
the training conducted by Envision in China and Taiwan focused on iREC procurement and other green
energy procurement schemes available in the region like green electricity consumption certificate (GECC).
The percentage of training participation for factories in renewable energy procurement is 53%; as it was a
refresher training in 2023, the supplier factories which have already purchased iRECs, or other forms of
green energy certificates did not join.
In 2023, a training on carbon trading provided by IMPAQ (a
third party organisation) was only relevant for
textile/fabric core Tier 2 factories located in mainland China. However, all core Tier 1 and Tier 2 factories
located in China and Taiwan regions were invited to attend for awareness about regulatory requirements in
the area. As per these requirements, heavy industries in Guangdong province with greenhouse gas emissions
of more than 10,000 tons per year or energy consumption of at least 5,000 tons of standard coal per year are
required to be included in a carbon trading scheme. Although the textile sector is one of the potential sectors
to be included, this regulation is still not enforced for the textile sector. Because of this, 53% of core Tier 2
textile factories invited attended this training, whereas only 44% of non-textile core Tier 2 factories joined this
session. However, 76% core Tier 1 factories joined this training due to better engagement with them. In total,
59% of factories invited attended this training. If the scope of these regulatory requirements expands to other
product divisions, we will continue to provide this training in the future.
For the German Training Week on Energy Efficiency programme, organised by GIZ in Vietnam, PUMA was
allocated only eight slots, and eight core factories joined the programme. Hence, the percentage of core
factories which participated relative to the total number of core factories in Vietnam (47) is only 17%.
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↗ T.22 SUPPLIER TRAINING
Training Topic
Scope
Country
Trainer
Number of
suppliers
Number of
factories
Number of
participants
% factories
trained*
Science Based
Target networking
sessions
Suppliers selected
for SBT
Global
Guidehouse/
CDP/
UNFCCC
21
48
215
100%
LOCT program
Suppliers selected
for SBT
Global
Guidehouse
8
24
23
50%
Renewable
Energy
Procurement -
iREC training/
Green Energy
All core factories
Vietnam, China,
Cambodia,
Indonesia,
Philippines,
Taiwan
Monsoon
Carbon/
Envision
36
52
94
53%
Carbon Trading
Basic Introduction
(for textile
industry in China)
All core factories
China, Taiwan
IMPAQ
27
34
48
59%
German Training
Week –
Energy Efficiency
Selected
core factories
Vietnam
GIZ
8
8
8
17%
*
% of factories trained, calculated based on the total the factories in the scope for each subject matter training
To improve the awareness level of PUMA employees, we developed a foundational e-learning training
module on climate action for all employees which is expected to be rolled out in the first half of 2024. In
2023, we launched phase 3 of Clean by Design (CbD) in the China-Taiwan region in partnership with Apparel
Impact Institute (Aii) at two core Tier 1 and five core Tier 2 factories. We also kicked off a new resource
efficiency programme called REF Programme at four core Tier 1 factories in Vietnam in partnership with
ENERTEAM. In early 2024, we will launch an IFC cleaner production programme, called Decarbonization
programme (CaDP) in Cambodia at three core Tier 1 and 1 core Tier 2 factories.
In addition to this, four Tier 1 and three Tier 2 factories participated in various rooftop solar projects in 2023.
The macroeconomic situation and overall uncertainty in the trade remained challenging during the first half
of 2023. Recession fears in various markets, persistent high inflation and elevated interest rates led to
muted consumer sentiment and volatile demand in retail. In addition, elevated inventory levels in the
market contributed to a slower sell-in to the Wholesale channel. This created less demand from the
markets, and we had to adjust our orders accordingly. This explains why we did not launch Renewable
Energy programmes in 2023 to cover 76% sourcing volume of Tier 1, 75% sourcing volume of Tier 2, and
cleaner production programme to cover 74% sourcing volume of Tier 1 and 75% sourcing volume of Tier 2,
as reported in our 2022 annual report.
The values below represent annual savings from completed and ongoing projects (PaCT programme in
Bangladesh, CbD programme in China, Indonesia, Vietnam) from 2019 until the end of 2023:
• Greenhouse gas reduction: 90,182 tCO2e per year
• Renewable energy: 247 MWp of RE capacity (including offsite wind) added in 2021, 2022 and 2023
• Water saving: 2,401,002 m
3 per year
• Energy saving: 177,168 MWh per year
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↗ T.23 SUPPLIER CLIMATE ACTION PROGRAMMES
Cleaner Production programmes
Country
Program/Partner
Scope
Number of
factories*
% Sourcing volume
(globally)
China-Taiwan
Clean-by-Design (CbD)/aii
Energy and water efficiency
T1: 3
T2: 16
2023
Tier 1: 70%
Tier 2: 56%
To be Enrolled
2024
Tier 1: 71%
Tier 2: 62%
Low Carbon Manufacturing
Program (LCMP)/WWF
Energy and water efficiency
T1: 7
Bangladesh
Partnership for Cleaner Textile
(PaCT)/IFC
Energy and water efficiency
T1: 6
T2: 4
Vietnam -
Cambodia
Clean-by-Design (CbD)/aii,
FABRIC/GIZ
Energy and water efficiency,
Coal phase-out
T1: 8
T2: 2
MSMA
Energy and water efficiency
T1: 6
T2: 3
Greening Textile Program
Energy and water efficiency
T2: 2
Indonesia
Clean-by-Design (CbD)/aii
Energy and water efficiency
T1: 3
Mexico**
Sustainable energy for all
Energy efficiency
T1; 2
Total
T1: 35
T2: 27
*
The number of factories represents completed and ongoing projects from 2019 until the end of 2023
** Non-core factories
PUMA Annual Report 2023
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↗ T.24 RENEWABLE ENERGY PROGRAMMES
Country
Programme/Partner
Scope
Number of
factories*
% Sourcing
volume (globally)
Vietnam/ Cambodia
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 7
T2: 2
Self-initiative by factories
Rooftop Solar
T1: 5
T2: 8
Self-initiative by factories
iREC/DPPA pilot
T1: 4
T2: 3
China-Taiwan
Self-initiative by factories
Rooftop Solar
T1: 7
T2: 9
Offsite wind, DPPA, iREC
T1: 11
T2: 9
2023
Tier 1: 65%
Tier 2: 60%
Bangladesh
Partnership for Cleaner Textile
(PaCT)/IFC
Rooftop Solar
T1: 2
T2: 1
Self-initiative by factories
Rooftop Solar
T1: 2
T2: 2
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 3 To be enrolled in
2024
Tier 1: 71%
Tier 2: 73%
Indonesia
Clean-by-Design(CbD)/aii
Rooftop Solar/ TIGR
T1: 3
Pakistan
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 2
Other (Argentina,
Brazil, Mauritius,
Philippines, Turkey)
iREC, Geothermal
T1: 3
T2: 1
Total
T1: 49
T2: 35
*
The number of factories represents completed and ongoing projects from 2019 until the end of 2023
Rooftop solar panels from our suppliers in Bangladesh and Vietnam
PUMA Annual Report 2023
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Coal-Fired Boiler Phase-Out
We are committed to phasing out coal-fired boilers from our supply chain, mainly from the core Tier 1 and
Tier 2 suppliers, by 2025. In 2022, we mapped our core suppliers and found that 21 of them have coal-fired
boilers. In 2023, the number of core factories with coal fired boilers reduced to 17 due to revisions in the core
factory list, out of which two factories have successfully phased out coal and 11 factories have partially
replaced coal. In 2024, we plan to engage with remaining four factories which have not yet initiated the
transition. We also plan to continue our tracking of factories which are under transition.
↗ G.16 COAL-FIRED BOILER PHASE OUT STATUS
In 2022 PUMA joined the Coal Phase Out Action Group under the UN’s Fashion Charter, with an objective to
collaborate with other brands to expedite the phase-out of coal in our supply chain. We included a coal-fired
boiler question in our on-boarding checklist for new factories in July 2022, to avoid on-boarding such
factories with coal-fired boiler.
As a first step the brands have mapped their supply chain to identify supplier factories with coal fired
boilers, and also identified the overlapping suppliers to prioritize these factories. GIZ joined this programme
as an implementation partner and offered a coal phase-out pilot in Vietnam. This programme has a 10-step
approach to realize coal phase out. Currently we are exploring options to partner with other brands to test
the programme in our supply chain.
↗ CASE STUDY
Coal phase-out
In 2023, Chen Tai (Vietnam) Woven Tapes Enterprise Co., Ltd. successfully phased out the use of coal
for its boiler by switching to rice husk biomass. Not only did this transition allow the facility to reduce
their GHG emissions by 2,600 tCO2e, it also helped the facility to save 20% in fuel costs.
Supplier Climate Targets
Science based targets are ambitious and difficult to achieve. Only large suppliers with capacity and top
management commitment will be able to succeed. Those suppliers are identified through a readiness
survey, climate investment study, long term business potential and in alignment with sourcing leaders. For
the remaining suppliers, we plan to implement a simplified target setting system and hence an in-house
tool is being developed for these suppliers.
Vietnam
53%
China
17%
Taiwan
18%
Cambodia
6%
Turkey
6%
Geographical Spread
Partially replaced
65%
Not started
23%
Done
12%
Implementation Status
PUMA Annual Report 2023
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In 2021, we developed two training modules for our core suppliers with the objective of driving climate target
setting. One module focuses on the group of suppliers that need to establish science-based targets, and the
other is aimed at the group of suppliers that needs to establish climate targets based on a simplified tool
developed in-house.
In continuation of efforts made in 2021 regarding SBT for key suppliers, we conducted a climate investment
survey for our top 20 suppliers and evaluated long-term business potential with them in alignment with our
sourcing leaders. We evaluated their readiness level to set a SBT in future.
In 2023, we approached 21 selected supplier groups representing 40-50% of our business volume,
to suggest them to set Science-Based Targets on company level (covering all of their factories including the
ones not producing for PUMA). In March 2023 we kicked it off through a meeting, to go in detail through SBT
process with the help of CDP. 19 out of these 21 suppliers agreed to set up SBT, one supplier declined, and
one supplier already had an approved target. To encourage peer learning and to learn from industry experts
we launched regular networking sessions on SBT. So far, we have completed two this year after the kickoff
meeting in March. One supplier has already an SBT approved by SBTi, one has science-aligned targets
(Scope 1 and 2) approved by World Resources Institute (WRI), nine suppliers are in process of getting
SBT approved.
Supplier Leadership On Climate Transition (LOCT) Programme
In October 2023, we engaged with Guidehouse to launch a capacity development programme called Supplier
Leadership On Climate Transition (LOCT). The programme provides a web-based platform to learn and
implement a step-by-step approach for setting Science Based Targets and guidance on how to achieve those
targets. So far, nine suppliers registered to join this programme in fall 2023. However, only eight suppliers
joined, since one supplier selected a training available only after a supplier has set a SBT. This supplier will
join the programme in 2024. We expect some other suppliers to join in early 2024.
PUMA Annual Report 2023
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122
↗ CASE STUDIES
Resource efficiency
TST Group, which is one of our dyed fabrics suppliers, has implemented an innovative low-carbon
coloration process, at its dyeing mills located in China and Cambodia. The supplier has installed
advanced dyeing machines such as low liquor ratio dyeing machines, which require much less water
than conventional dyeing machines. The factories also switched from batch to continuous
pretreatment (preparation of fabric for dyeing) and continuous after-treatment (finishing of fabric)
which are more efficient processes and hence consume less energy and water. These initiatives are
estimated to reduce water usage by 70% and carbon footprint by 60% as compared to the
conventional dyeing process in China. In Cambodia, it is estimated to reduce water usage by 40% and
carbon footprint by 45% compared to the conventional process. TST has also gone for cold pad batch
dyeing machines in its Chinese factory, which dye fabric in a cold condition, rather than in a heated
condition in the conventional dyeing process. This technology, along with continuous pre-treatment
and continuous after-treatment, is estimated to reduce water consumption by 75%, carbon footprint
by 55% and chemical consumption by 90% compared to conventional dyeing process. The
environmental benefit of these initiatives can be evidenced from water and energy data we collected.
TST China’s GHG emissions are 54% lower, and the water consumption is 16% less than PUMA
suppliers' average for textile mills. TST Cambodia’s GHG emissions are 50% lower and the water
consumption is 10% less than PUMA suppliers’ average for the textile mills.
Solar PV
The Urmi Group, a renowned group of companies based in Bangladesh, has committed to reducing
the greenhouse gas emissions from its business operations by 52.6% (intensity) by 2027 compared to
the baseline year 2017. Therefore, Fakhruddin Textile Mills Ltd., one of the largest textile
manufacturing units of the Urmi Group, installed roof-top solar panels in April 2022 and started to
add renewable energy with a full design capacity of 2.5 MWp. As a result, solar PV is contributing to
increasing the share of renewable energy and lessening GHG emissions into the atmosphere. In
2023, renewable electricity consumption accounted for 10% of the total electricity consumption
(purchased & captive) of the factory. At the same time, the factory lowered its emissions by 1,216
tCO2e of greenhouse gas annually.
Forest, Land and Agriculture (FLAG) emissions estimation
As required by the Science Based Target Initiative (SBTi), in 2023 we undertook a study to estimate the
greenhouse gas emissions from the Forest, Land and Agriculture (FLAG) sector of our supply chain. The
SBT requirement states that we need to set a target for FLAG emissions, if the FLAG-related emissions total
20% or more of our Scope 1, 2 and 3 emissions. PUMA engaged leading sustainability consultant Sphera to
assess the FLAG footprint of our materials; the assessment indicates that FLAG emissions constitute 3% of
the total emissions in 2022 and 4% in the baseline of 2017. Thus, there is no requirement for PUMA to set
separate FLAG targets under SBT. Out of the total FLAG emissions cotton accounts for 55% of emissions
followed by leather which contributes 26%.
PUMA Annual Report 2023
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123
↗ G.17 FLAG EMISSIONS
↗ T.25 FLAG EMISSIONS
2022
2017
Total PUMA GHG emissions (Scope 1, 2 & 3)*
1,975,535
1,836,272
Total FLAG emissions
66,324
74,408
FLAG emissions % of total Scope 1, 2 & 3
3%
4%
*
Emissions data contain further Scope 3 categories, e.g. the product use phase, which was not taken into account in the
further Scope 3 considerations of this report, as PUMA has no influence on it
Scope 3 Category 1 Emissions
In 2023, we continued our assessment of Scope 3 emissions that come from PUMA’s indirect business
activities, mainly in the supply chain, by lifecycle expert company Sphera in line with the Greenhouse Gas
Protocol.
As in 2022, they conducted a comprehensive assessment of our supply chain emissions beyond Tier 1
manufacturing, including Tier 2 manufacturing of fabrics and components, estimated emissions from Tier 3
suppliers and material production using emission factors from their LCA database known as the
GaBi database.
↗ T.26 PUMA’S SCOPE 3 CATEGORY-1 CO2E EMISSIONS FROM SELECTED VALUE CHAIN
ACTIVITIES
1
Scope 3
Emissions
(Category -1)
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2017/2023
Absolute GHG
emissions
(tCO2 eq)
991,864
1,278,758
1,242,468
1,389,335
1,631,904
1,484,935 1,409,265
-30%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Note: Scope 3 category 1 estimation includes GHG emissions associated with goods and services purchased by PUMA from
Cotton
55%
Polyester
0%
Rubber
2%
Paper and
cardboard
14%
Leather
26%
Others
3%
PUMA Annual Report 2023
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124
its suppliers related to PUMA products and associated packaging. This excludes emissions associated with other goods and
services acquired by PUMA offices, stores and warehouses.
We can see that our absolute Scope 3 emissions from the purchased goods and services category have
decreased by 30% from 2017 to 2023, while material consumption has in increased by 10% during the same
period.
In view of the global macroeconomic situation, which has led to a change in customers' ordering behaviour,
and the normalisation of the supply chain, we saw a decline in the order book in the first half of the year and
stabilisation during the second half, with a return to the pre-pandemic ordering practices. Therefore, we
actively adjusted sourcing activities respectively and continued to provide transparency to our sourcing
partners so they can adjust their capacities accordingly. This explains why material consumption and energy
consumption decreased compared with 2022. This contributed to our absolute greenhouse gas emission
reduction, alongside energy efficiency improvements and the increased use of renewable electricity at a
factory level, as well as the usage of more sustainable materials.
Scope 3 Category 1 emissions mainly originate from two sources; the raw materials and the energy
consumed by our core Tier 1, Tier 2, Tier 3 (production of raw material) suppliers to produce finished
materials and components as well as finished goods. A breakdown of total GHG emissions by source is
presented below.
↗ G.18 GHG EMISSIONS BY SOURCE
Carbon footprint at a supply chain level
Looking deeper into the emissions from our supply chain, we see that absolute GHG emissions from Tier 1
and Tier 2 suppliers were 3% lower in 2023 than in 2017. 65% of greenhouse gas emissions are coming from
Tier 2 factories while 35% of emissions are contributed by Tier 1 factories. Drilling down into product
divisions, we can see that the Tier 2 textile/fabric mills contribute a maximum of 61% followed by Tier 1
footwear factories with 26%. This is mainly due to the higher energy footprint of Tier 2 textile wet processing
units. Further analysis indicates that absolute emissions from Textile Tier 2 factories have increased by
18% while the production of textile/fabric for PUMA factories has increased by 23% in 2023 as compared to
2017. The absolute emissions from Footwear Tier 1 factories have reduced by 17% in 2023 as compared to
2017, while the PUMA production from Tier 1 Footwear factories has increased by 31%. This was achieved
due to the participation of these factories in cleaner production, renewable energy programmes and the
purchase of iRECs.
Absolute GHG emissions from Tier 3 suppliers in 2023 saw a marginal increase of 0.3% compared to 2017. A
closer look at the data indicates that this marginal increase in absolute emissions from Tier 3 suppliers is
mainly due to a rise in the consumption of polyester and polyurethane during this period. Polyester and
Tier 1&2
24%
Tier 3
18%
Materials
58%
Tier 1&2
34%
Tier 3
25%
Materials
41%
Scope 3.1 Emissions (2017)
Scope 3.1 Emissions (2023)
PUMA Annual Report 2023
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polyurethane together increased by 27% in 2023 as compared to 2017; this was mainly due to an increase in
sourcing volume but also because our material data quality and accuracy has improved since 2021.
We see opportunities to further scale up cleaner production and renewable energy programmes to more
Tier 1 and Tier 2 suppliers, and also to launch them at some of the spinners (Tier 3).
In 2023, we mapped our core Tier 3 spinning mills for the Apparel division through our core Tier 1 and Tier 2
suppliers. We could identify 20 spinning mills. We collected yarn volume supply for PUMA production in 2022
for 19 mills. These 19 factories represented 25.8% of our total volume of yarns sourced in 2022. The objective
was to engage these factories to collect primary energy data from Tier 3 suppliers to calculate greenhouse
gas Scope 3 emissions rather than estimating the emissions from Tier 3 factories by using raw material
data and subsequently to engage them on cleaner production and renewable energy programmes. We
provided training to these Tier 3 suppliers on energy data questionnaires and asked them to provide the
data. However, we faced many challenges, including a lack of willingness on the part of these Tier 3
suppliers to provide energy data and supporting documents.
Only eight factories submitted data. Out of these eight factories only three factories’ data could be validated.
The remaining five factories did not provide supporting documents. In coming years, we will continue to
encourage these suppliers to submit their data. The 2023 Tier 3 emissions are estimated by Sphera using
its GaBi database.
↗ T.27 GHG EMISSIONS BY SUPPLIERS
1
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Absolute GHG emissions
from Tier 1 and Tier 2
suppliers (t CO2e)
334,123 423,762 358,508 297,573 371,420 382,043
345,361
-21%
-3%
Tier 3 suppliers (t CO2e)
252,918 305,869 284,215 223,909 258,425 193,193
252,251
-17%
0.3%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Note: Tier 1 & Tier 2 emissions are estimated based on actual energy consumption collected from core Tier 1 and Tier 2
factories and extrapolated to cover all Tier 1 and Tier 2 supplier factories. Tier 3 emissions are estimated by Sphera by using
its GaBi database.
PUMA Annual Report 2023
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↗ G.19 GHG CONTRIBUTION BY PRODUCT DIVISION
1-2
1
Tier 1: Apparel, Footwear & Accessories factories
2
Tier 2: Leather, textile, polyurethane factories
PROPORTION OF PRODUCTION POWERED BY COAL
Out of the various product divisions, currently coal is only used in leather and textile production. For leather,
around 24% of PUMA production is powered by coal, of which 7.6% in China and 17.0% in Vietnam. For textile,
around 43% of PUMA production is powered by coal. Vietnam contributes the most with 31.8%; the remaining
percentage is shared between Cambodia, China, Taiwan and Turkey. Aligning with PUMA strategies, all
suppliers that are still using coal for their production have set targets and plan to phase out coal.
↗ T.28 PERCENTAGE OF PRODUCTION POWERED BY COAL (CORE TIER 2)
1
China
Vietnam
Total
Tier 2 -
Leather*
7.6%
17.0%
24.6%
Cambodia
China
Taiwan
Turkey
Vietnam
Total
Tier 2
Textile**
3.6%
1.7%
2.3%
3.8%
31.8%
43.2%
*
Core Tier 2 Leather: 5 factories
** Core Tier 2 Textile: 32 factories
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Carbon Footprint At A Raw Material Level
Absolute GHG emissions from raw material consumption fell by 50% even as total material consumption
increased by 10% since 2017. This was achieved due to our continuous endeavour to shift towards more
sustainable materials and other measures. More sustainable cotton and polyester increased from 40% and
47% in 2017 to 99.2% and 85% respectively in 2023. In view of the global macroeconomic situation, which has
led to a change in customers' ordering behaviour, and the normalisation of the supply chain, we saw a
Apparel
6%
Footwear
26%
Accessories
3%
Leather
1%
Polyurethane
3%
Textile
61%
Apparel
9%
Footwear
31%
Accessories
6%
Leather
3%
Polyurethane
1%
Textile
50%
2017
2023
PUMA Annual Report 2023
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127
decline in the order book in the first half of the year and stabilisation during the second half. This explains
why material consumption decreased compared with 2022.
↗ T.29 GHG EMISSIONS FROM MATERIALS
1
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Total raw materials (t)
174,390 200,514 187,101 195,039
200,936 179,995
158,509
-13%
10%
GHG emission from
materials (tCO2e)
404,822 549,127 599,849 867,853 1,002,059 549,127
811,654
-26%
-50%
1
Assumptions: During the Scope 3 assessment, it was observed that material data collection has improved over time and
that, since 2021, we have been able to capture the material data comprehensively. For example, 2017, material data was not
available for all types of materials and some material data were incomplete. In the absence of comprehensive raw material
data for 2017, material data was extrapolated from 2020. Furthermore, we observed that the polyester consumption data for
footwear was exceptionally high for 2020 and possibly erroneously overestimated. Therefore, the polyester data for footwear
for 2017 and 2020 was extrapolated from 2019 data.
A breakdown analysis as shown in the following chart indicates that polyurethane (23%) contributes the
most, followed by leather (18%) and polyester (17%). The share of rubber has significantly reduced from 33%
in 2017 to 15% in 2023, mainly due to a reduction in rubber consumption during the same period, while
the share of polyurethane has significantly increased from 7% in 2017 to 23% in 2023, and polyester’s share
has increased from 12% to 17% mainly due to significant increase in polyurethane and polyester
consumption during the same period. The share of leather has fallen from 21% in 2017 to 18% in in 2023. This
is due to a combination of strategies to replace leather with polyurethane and textile and the improved
capture of leather data in 2023, as we collected suede leather and grain leather data separately and suede
leather has a lower carbon footprint than full grain leather.
The analysis for 2023 indicates that we need to focus more on sustainable alternatives for polyurethane,
polyester, leather and synthetic rubber.
↗ G.20 GHG CONTRIBUTIONS BY MATERIALS
1-2
1
Other include: acrylic, linen, lycra, metals, adhesives, etc.
2
Leather is natural leather while polyurethane is imitation leather, also known as synthetic leather
Cotton
11%
Leather
18%
Polyester
17%
Plastic packaging
1%
Rubber
15%
EVA
9%
Polyurethane
23%
Paper packaging
2%
Other
4%
Cotton
8%
Leather
21%
Polyester
12%
Plastic packaging
0%
Rubber
33%
EVA
6%
Polyurethane
7%
Paper packaging
0%
Other
13%
2017
2023
PUMA Annual Report 2023
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↗ G.21 ENERGY AND WATER CONSUMPTION AT RAW MATERIAL LEVEL
↗ T.30 ENERGY AND WATER CONSUMPTION AT RAW MATERIAL LEVEL
Material wise analysis
Water Consumption (m3)
Energy Consumption (GJ)
Cotton
30,115,148
255,981
Leather
2,824,342
935,920
Polyester
5,253,305
1,950,459
Plastic packaging
7,520
18,543
Rubber
684,179
2,338,201
EVA
282,703
1,239,101
Polyurethane
495,391
1,977,494
Paper packaging
77,727
143,537
Others
1,793,769
469,798
In 2023, we evaluated the energy and water footprint at a raw material level. The results indicates that the
energy footprint of rubber is the highest (25.1%) followed by polyurethane (21.2%) and polyester (20.9%).
When it comes to water cotton has the highest share (72.5%) followed by polyester (12.6%). We intend to use
this analysis for material selection purposes to reduce the energy and water footprint of our products.
Renewable Energy
In line with our 10FOR25 target to achieve a 25% share of renewable energy for core Tier 1 and Tier 2
suppliers, we have set a goal of 15% renewable energy share for 2023. The share of renewable energy
consumption by Tier 1 suppliers increased from 11.3% in 2022 to 23.1% in 2023 and Tier 2 suppliers increased
from 10.8% in 2022 to 21.7% in 2023. The increase in both tiers therefore has helped PUMA to reach an
overall share of renewable energy of 22.1% in 2023, greatly exceeding our target. This was mainly achieved
due to the participation of the core suppliers in renewable energy projects, followed by the installation of
rooftop solar facilities, switching from coal to biomass and the purchase of energy attribute certificates
by both core Tier 1 and Tier 2 suppliers.
Cotton
72.5%
Leather
6.8%
Polyester
12.6%
Plastic packaging
0.0%
Rubber
1.6%
EVA
0.7%
Polyurethane
1.2% Paper packaging
0.2%
Others
4.3%
Cotton
2.7%
Leather
10.0%
Polyester
20.9%
Plastic packaging
0.2%
Rubber
25.1%
EVA
13.3%
Polyurethane
21.2%
Paper packaging
1.5%
Other
5.0%
Energy Consumption (GJ)
Water Consumption (m³)
PUMA Annual Report 2023
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129
↗ T.31 E-KPIS PUMA TIER 1 & TIER 2 PRODUCTION - ENERGY
1
Energy (MWh)
2023
2022
2021
2020
2019
2018
2017
% Change
2020/2023
PUMA production (Core Tier 1)*
Non-renewable energy
consumption from PUMA
production (Core Tier 1)
201,553
292,459
331,199 221,641 246,160 195,866
194,881
-9.1%
Renewable energy consumption
from PUMA production (Core Tier 1)
60,662
37,322
17,763
3,013
294
1,913.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 1)
23.1%
11.3%
5.0%
1.0%
0.2%
1,625.0%
PUMA production (Core Tier 2)**
Non-renewable energy
consumption from PUMA
production (Core Tier 2)
611,238
744,940
795,673 607,310
586,986
0.6%
Renewable energy consumption
from PUMA production (Core Tier 2)
169,655
90,333
39,317
3,393
524
4,901.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 2)
21.7%
10.8%
5.0%
0.6%
0.1%
3,811.0%
PUMA production (Core Tier 1 and 2)
Non-renewable energy
consumption from PUMA
production (Core Tier 1 and 2)
812,792 1,037,399 1,126,872 828,951 246,160 195,866
781,867
-1.9%
Renewable energy consumption
from PUMA production (Core Tier 1
and 2)
230,317
127,655
57,080
6,406
-
818
3,496.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 1 and 2)
22.1%
11.0%
4.8%
0.8%
0.1%
2,779.0%
*
Core Tier 1 supplier factories Apparel, Footwear and Accessories (62 factories))
** Core Tier 2 supplier factories Leather, PU and Textiles (40 factories)
1
Data includes extrapolations or estimations where no real data could be provided. The values for November and
December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in Microsoft Excel, utilizing data
from January to October of 2023. This approach was chosen after comparing it to alternative methods, considering its
performance against actual historical data, specifically in terms of deviation from the actual values in percentage terms. The
ETS method displayed both higher accuracy and higher precision compared to other methods, such as averaging the last
10/12 months or multiplying the estimated production by the average KPI (per production unit) from the 12 months of data
spanning from November 2021 to October 2022.
Renewable electricity
The share of renewable electricity sourcing by Tier 1 and Tier 2 suppliers has increased from 0.35% in 2017
to 27.4% in 2023. Looking at the Tiers in the value chain, the share of renewable electricity has increased
from 0.18% in 2017 to 18.0% in 2023 by Tier 1 suppliers, while it has increased from 0.74% to a
significant 47.2% for Tier 2 suppliers during the same period including the purchase of RECs by suppliers.
This progress is achieved due to publicly disclosed 2025 goals on renewable energy, one-to-one follow-up
meetings with the suppliers, the participation of factories in renewable energy programmes which led to
the installation of roof-top solar PV and the purchase of RECs. Support from the Sourcing department has
played a major role in engaging with our core suppliers.
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↗ T.32 SHARE OF RENEWABLE ELECTRICITY AS COMPARED TO GRID ELECTRICITY
1-3
Electricity (kWh)
2023
2022
2021
2020
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Total renewable
electricity
91,246,157
64,624,534
14,494,042
3,588,937
817,644
41%
11060%
Total grid electricity
241,651,096
333,408,508
324,910,084
252,665,750
234,323,351
-28%
3%
Share of renewable
electricity
27.4%
16.24%
4.30%
1.40%
0.35%
69%
7783%
T-1 renewable
electricity
40,660,939
13,695,766
11,149,103
1,999,458
298,283
197%
13532%
T-1 grid electricity
185,115,917
266,321,305
218,804,548
169,593,745
164,904,224
-30%
12%
Share of renewable
electricity (T-1)
18.0%
4.89%
4.80%
1.17%
0.18%
268%
9874%
T-2 renewable
electricity
50,585,218
50,928,768
3,344,939
1,589,479
519,361
-1%
9640%
T-2 grid electricity
56,535,179
67,087,203
106,105,536
83,072,005
69,419,127
-16%
-19%
Share of renewable
electricity (T-2)
47.2%
43.15%
3.10%
1.88%
0.74%
9%
6259%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
2
The total electricity does not include captive electricity generation from fossil fuels such as Natural Gas, Diesel etc.
3
The renewable energy includes iREC certificates purchased by core leather, polyurethane, textile factories in the year 2023,
but excludes renewable energy sourced by the Tier 2 core factories e.g., packaging and labelling, trims, footwear bottom and
knitted uppers.
Policy Advocacy
As a part of Policy Engagement working group under Fashion Industry Charter for Climate Action. In 2023,
the UNFCCC organised a policy dialogue event with stakeholders in Bangladesh. The purpose of this policy
dialogue was to initiate an inclusive but focused discussion among key stakeholders in the fashion sector
about how to jointly effect the required changes, identify actions that can be taken in the near-term future to
accelerate renewable energy, support scaling renewable energy solutions, and connect existing efforts on
the ground with best practice case studies.
PUMA participated in this policy dialogue event on February 27
th, 2023, along with other brands. The key
outcomes were:
• The government of Bangladesh remains committed to accelerating transition to renewables.
• Discussions were focused on exploring direct Power Purchase Agreements (PPAs) as a solution for
transiting to renewable energy in Bangladesh.
• The need for fiscal and tax incentives, including upgrade of tariffs were identified as key required policy
interventions.
• Opportunities to identify financing for renewable energy were another key aspect which needs to be
explore.
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GREENHOUSE GAS EMISSIONS FROM THE TRANSPORT OF GOODS
PUMA’s Logistics Team has been working on reducing greenhouse gas emissions from the transport of
goods for several years. Key measures include the optimisation of container loads, as well as reducing
airfreight to an absolute minimum. Air freight reduction is also part of PUMA’s annual bonus targets.
2023 brought progress in several areas:
• We managed to further reduce our airfreight ratio to 0.3%, meaning that only 0.3% of all PUMA goods (by
unit) are transported by air. This is a significant reduction compared to 2019 (before the COVID-19
pandemic) where the value was close to 3%.
• Together with our main logistics service provider Maersk, we've integrated biofuels into our marine
shipments as part of Maersk’s eco-friendly shipping initiative. Since February 2023, the utilisation of
biofuels for transporting goods from our manufacturing sites to the European market has resulted in an
impressive 84.6% reduction in GHG emissions along these routes.
• Our logistics team in the USA was able to expand the use of electric trucks from one to three trucks for
the transport of PUMA goods between the port in Los Angeles and the warehouse in Torrance. We
anticipate that more electric trucks will follow in other countries over the next years.
An electric truck operates at PUMA’s warehouse in California, USA
↗ G.22 SHARE OF GHG EMISSIONS BY TRANSPORT MODE IN 2019 AND 2023
Road
23.6%
Rail
1.0%
Sea
19.1%
Air
56.4%
Road
49.7%
Rail
3.1%
Sea
37.0%
Air
10.1%
2019
2023
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↗ T.33 CO2e EMISSIONS PER TRANSPORT MODE
CO2e emissions (t)
2023
2022
2021
2019
Road freight
33,665
48,345
38,815
24,522
Rail freight
2,103
675
3,153
1,013
Sea freight
25,070
45,891
44,698
19,830
Air freight
6,864
29,751
17,731
58,651
The graph and table above illustrate the relative downturn in the use of air freight compared to other modes
of transport. Our airfreight reduction target helped us reduce the share of emissions from airfreight from
56.4% in 2019 to 10.1% in 2023.
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CHEMICALS
TARGET DESCRIPTION:
• 100% of all PUMA products are safe to use
• Maintain RSL compliance rate above 90%
• Reduce organic solvent usage to under 10 gr/pair
Relates to Sustainable United Nations Development Goals 3 and 6
KPIs:
• RSL compliance rate per product division (as a percentage)
• Percentage of core suppliers with chemicals inventory and MRSL conformance report (ZDHC InCheck
reports)
• Suppliers’ chemical performance (verified FEM scores under chemical management section)
• VOCs used in footwear production (VOC index for shoes)
PUMA follows the precautionary principle and takes measures to prevent harm to human health and the
environment from its products and operations.
All the materials used in PUMA products are subject to our Restricted Substance List (RSL) Testing
Programme to ensure compliance with global chemical regulations. Rather than applying internal testing
standards for our tests, we rely on the AFIRM Group’s Product RSL and on the Manufacturing RSL
developed by the Zero Discharge of Hazardous Chemicals Foundation (ZDHC).
In 2021, we updated our target to RSL compliance rate above 90% considering the potential use of new
chemicals in the new material development and innovation. No material with a failed RSL test can be used
for PUMA products until the failure has been corrected and the material has successfully passed the test. In
this way, we mitigate the risk of product-level RSL failures. We will still track our RSL failure rates to
identify improvement opportunities and to prevent such failures from occurring in future.
At the manufacturing level, as part of our Zero Discharge of Hazardous Chemicals commitment, we
continued to ban the intentional use of priority chemical groups classified as particularly hazardous under
ZDHC standards. This phase-out was supported by the widespread use of bluesign® and OEKO-TEX®-
certified materials. There was no intentional use of the priority chemical groups. Poly- and per-fluorinated
chemicals (PFCs) were used until 2017 for water-repellent finishes on apparel and footwear products. In
2021 we started using Gore-Tex bluesign®-certified membranes and finishes again, which are either
completely PFC-free or free from PFCs of environmental concern. In February 2017, Gore announced the
“Goal and Roadmap for Eliminating PFCs of Environmental Concern (PFCEC)” from the lifecycle of its
consumer fabric products following discussions with Greenpeace. Gore Fabrics Division is still fully
committed to the PFCEC-free goals for its consumer products and is now on track to transition most of its
portfolio by the end of 2025.
Our phase-out of hazardous substances is also reflected in the results of wastewater tests performed by
our wet-processing suppliers. The tests show compliance levels of 98% among the 20 MRSL parameters
listed in the ZDHC MRSL. Most parameters show compliance rates of 100% or close to 100%. Some MRSL
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chemicals were still found in certain samples because we share production lines with other brands and
retailers. Please see our Water and Air section for further details.
A total of 283 ZDHC Gateway accounts are connected with PUMA: 45 are core Tier 1 and 64 core Tier 2
factories and the remaining are non-core factories. These factories are part of different ZDHC programmes,
depending on what applies to them: InCheck reports for MRSL conformance, ClearStream reports for
wastewater conformance, and the Supplier To Zero programme for chemical management.
CHEMICAL RISK ASSESSMENT AND NEXT STEPS
In 2021, we conducted a risk assessment using our risk assessment methodology. We used the Higg FEM
chemical management 2020 for our core suppliers and engaged with AFIRM and ZDHC foundation to review
our risk assessment.
We see a high level of risk in upcoming regulatory requirements. We will keep our engagement with AFIRM
and FESI as a platform to engage with policymakers in different regions and countries such as EU and the
USA, so that standards are achievable by the industry.
PUMA has a long-lasting programme to ensure compliance with industry standards.
We will keep using the China IPE database to screen any environmental violations by factories located in
China producing PUMA products or materials. We will keep monitoring compliance with ZDHC Wastewater
Guidelines, ZDHC MRSL and AFIRM RSL.
We organised MRSL conformance training for PUMA Tier 1 and Tier 2 suppliers and also invited chemicals
suppliers to engage on MRSL conformance engagement. In 2023 we initiated in-check report verification by
an authorised third party to ensure the credibility and reliability of MRSL conformance data.
The details of compliance with ZDHC Wastewater Guidelines, ZDHC MRSL, and Higg FEM chemical
management are described in this report.
2022 PUMA BRANDS TO ZERO – PROGRESSIVE LEVEL
We reached the Progressive Level for the Brands to Zero Assessment 2023. Brands
to Zero is ZDHC’s leader programme for contributor brands. ZDHC developed the
questionnaire and scoring methodology to assess the brands.
All participating contributors in the leader programmes are graded into three performance levels
Foundational, Progressive, and Aspirational. Our rating dropped from aspirational level in 2022 to
progressive level in 2023, due to changes in the rating criteria. Higher weightage is allocated to business
decisions linked to chemical management performance. Though at PUMA, we have a procedure in place to
link business decisions with factories’ chemical performance, we have not had such a case. We launched a
factory scorecard that includes chemical performance in 2021, so far factories have improved their
performance year after year.
In the 2023 Brands to Zero Assessment, we achieved a 100% score for five out of ten performance areas
such as Commitment, Internal Enablement, Supply Chain Engagement, ZDHC Gateway Chemical Module,
and ZDHC Wastewater Guidelines, as a result of our strong commitment to enhancing sustainable chemical
management in our supply chain.
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FEM CHEMICAL MODULE
PUMA has moved from individual brand chemical and environmental audits to using industry-wide tools,
such as the Higg Index Facility Environmental Module (FEM) 3.0. PUMA requires an annual external
verification of the self-assessment FEM modules (verification visits are announced). This external
verification may be completed by approved verifiers from PUMA’s internal team, other brands, or third-party
organisations on the approved list from SAC. The FEM Chemical Management Section measures factory
performance from inventory and purchasing through production, storage, and waste. PUMA’s Chemical
Performance Rating System is based on the ratings developed from the factories’ verified Higg FEM scores
under the chemical management section as verified by SAC-approved verifiers: A, B+, B-, C and D. The
minimum passing grade from a Chemicals perspective is 40% (i.e., only A, B+ and B- ratings are a passing
score) and C and D are failure ratings. This rating system was presented during meetings of suppliers and
sourcing teams in 2021 and was implemented gradually during 2022 and 2023. Our Chemicals handbook has
been updated accordingly. The rating system was included in vendor supplier scorecards along with social
and environmental ratings.
The table shows the aggregated verified FEM 2022 chemical module scores (median) for PUMA core
factories with industry benchmarking. Compared to the industry, the overall verified FEM score for our
factories is higher than the industry median score.
↗ G.23 AGGREGATED VERIFIED FEM CHEMICAL SCORE FOR PUMA FACTORIES BENCHMARKED
WITH INDUSTRY
1
*
FEM 2022 PUMA and Stichd average: 160 factories; FEM 2021 PUMA average: 142 factories; stichd has 32 core Tier 1 factories
of which 30 have completed verification. One core factory is a shared factory between PUMA and stichd and hence counted
once under PUMA
** Industry median FEM (6,980 factories): Filters used: Industry sector: Apparel; Footwear; Accessories (includes handbags,
jewelry, belts, and similar products) and Facility Type: Final Product Assembly; Printing, Product Dyeing and Laundering;
Material Production (textile, rubber, foam, insulation, pliable materials); Packaging Production
1
Verification in 2023 is for FEM2022; Verification in 2022 is for FEM2021
In 2023, PUMA continued to use the Higg Facility Environmental Module (FEM), an industry tool, to measure
chemical management performance through the Higg FEM Chemical Management Module, which tracks
purchasing and inventory management, production, storage, and waste locations. This tool is also used to
measure Chemical Management performance for stichd core factories.
In 2022, we communicated our expectation to the PUMA core factories that they improve their verified FEM
Chemical Management score to 46% in 2023. We exceeded this goal with a FEM Chemical Management
score for PUMA of 51%. The combined average of PUMA and stichd’s chemical module score also exceeded
by achieving the target with an average score of 49%. The industry median score is 32%.
29%
39%
49%
32%
FEM 2020 PUMA average FEM 2021 PUMA average FEM 2022 PUMA & stichd
average*
FEM 2022 Industry
median**
+26%
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During 2023, we continued to engage with our PUMA core Tier 1 and Tier 2 factories in capacity-building
activities and projects in chemical management, for factories with a low Higg FEM Chemical Module score.
We worked together with industry expert groups like ZDHC, AFIRM as well and ZDHC-approved laboratories
to organise training webinars and develop training videos in local languages.
PUMA also continued to join the Chemical Management Improvement (CMI) Programme of GIZ to improve
the factories’ performance. We collaborated with other brands to nominate participating factories in
Vietnam for a tutor-assisted and onsite consultancy programme. For other countries, the factories were
invited to join online training on chemical management developed by GIZ.
The improvement in the MRSL conformance rate also contributed to an increase in Higg FEM Chemical
Management score.
In 2024, we will continue to engage with our core Tier 1 and Tier 2 factories in capacity-building activities and
projects in chemical management. We will organise customised training sessions by SAC-authorised
trainers. The training sessions will focus on Higg FEM 4.0, such as key updates and their relevant impact on
their facility for a smooth transition to the new version.
SUPPLIER TRAINING
A series of training sessions were conducted in 2023, covering chemical management in input, process and
output phases, in collaboration with ZDHC, accredited third-party laboratories and external consultants.
ZDHC SUPPLIER TO ZERO ASSESSMENT
In 2023, our factories participated in the ZDHC Supplier To Zero programme, a ZDHC Chemical Management
System (CMS) Framework that contains a chemical management checklist to help factories identify
opportunities to improve their chemical performance. 77 core Tier 1 and core Tier 2 factories completed the
ZDHC Supplier To Zero assessment. Almost all of them completed their assessment at the end of 2023 and
we will monitor their improvement in 2024. As a result of this programme, the average Higg FEM Chemical
Management score of the 58 factories which participated in this programme in 2022, improved from 36% in
2022 to 55% in 2023.
CHEMICAL MANAGEMENT IMPROVEMENT (CMI)
Chemical Management Improvement (CMI) training course is an initiative by GIZ. The purpose is to
develop the knowledge and capacity of the team in charge of chemicals at factories. In 2023, 40
participants from 23 core factories completed and passed the course.
In Vietnam, the training aims to develop a sound knowledge of the responsible management of chemicals,
improving capacities for the corporate environment, safety and health, and resource management in
relevant industries. Four core factories in Vietnam joined this programme and received onsite consulting
from Chemical Management Advisors (CMA) assigned by GIZ, such as Leadership and Sustainability
consultancy company. After the consulting, the factories were requested to submit an Action Plan to
improve chemical management, CMA will review this and provide recommendations. 24 participants from
these four factories joined and completed this programme in 2023. 100% of participating factories worked on
improvement plans after these training sessions.
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↗ T.34 SUPPLIER TRAINING
Virtual training
Training scope
Topics
Number of
participants
Number of
factories
% of factories
which joined*
MRSL
(jointly organised with a
ZDHC-approved laboratory)
Conducted 3 sessions in
3 different languages
Core Tier 1 and
core Tier 2 in
MRSL scope
• ZDHC MRSL V3.1 and
ZDHC MRSL
Conformance Guidance
V2.0
• How to improve MRSL
conformance rate
258
98
92%
Chemical Inventory
Management/Bhive
(jointly organised with a
ZDHC-approved solution
provider)
Conducted 4 sessions in
4 different languages
Remaining core
factories in MRSL
scope don’t have
InCheck Report
• PUMA Chemical
Management
Programme
• Chemical Inventory
Management / Bhive
InCheck report
introduction
22
11
92%
ZDHC InCheck verification
(jointly organised with a
ZDHC-approved solution
provider and a ZDHC-
approved laboratory)
Conducted 3 sessions in
3 different languages
Core Tier 1 and
core Tier 2 in
MRSL scope
• ZDHC MRSL/InCheck
report
• ZDHC verified InCheck
level 1 & PUMA
InCheck Verification
requirement
168
96
91%
RSL
(Jointly organised with
accredited third-party
laboratory)
All Tier 1 and Tier
2
RSL standard and testing
matrix update and
implementation
452
Approx. 160
24%
*
% of factories joined the training, calculated based on the total the factories in the scope for each subject matter training
In 2023, Chemical Management training sessions covered MRSL conformance and factory chemical
management. Ten training sessions were conducted in four different languages. More than 200 factories
and nearly 450 participants were invited. More than 90% of participants were satisfied with the training.
These training programmes helped our suppliers to improve their understanding of PUMA and industry
requirements and to improve the effectiveness of their Chemical Management Systems. After the training,
the core factories with low MRSL conformance rates developed an Action Plan to improve MRSL
conformance. We received and reviewed Action Plans from 13 factories to facilitate their implementation.
We also encouraged the suppliers’ chemical management teams to attend training courses under ZDHC
Academy as conducted by ZDHC-approved service providers. Examples of the training courses that PUMA
suppliers attended include ZDHC Chemical Management System (CMS) and Technical Industry Guide (TIG)
training.
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RESTRICTED SUBSTANCE LIST (RSL)
Between January and October 2023, we received 6,130 RSL tests and material certification submissions with
an overall RSL compliance rate maintained above 98%. Materials found to be non-compliant with PUMA RSL
cannot be used for PUMA products and suppliers need to arrange corrective actions, remediation and retest
the materials. This is to ensure that PUMA products are compliant with our RSL requirements.
↗ G.24 RSL COMPLIANCE RATE BY DIVISION 2023 (JAN-OCT) (%)
↗ T.35 RSL TEST STATISTICS 2020-2023 (JAN-OCT)
2023 (Jan-Oct)
2022
2021
2020
Product
division
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
Footwear
4,622
99.1
5,350
98.6
5,847
98.8
5,117
99.3
Apparel
1,018
99.5
1,499
99.3
1,467
99.0
1,318
98.9
Accessories
441
92.7
846
96.5
737
94.4
878
96.8
Others
49
95.9
156
96.2
133
97.7
152
91.4
Total
6,130
98.7
7,851
98.5
8,184
98.4
7,465
98.8
RANDOM TESTING
PUMA performs due diligence random RSL tests on high-risk materials of finished products. By
October 2023, we had tested 130 materials in nine finished products across footwear, apparel and accessories
from different suppliers in different sourcing regions, and the pass rate was 99% as of October 2023.
All tested products are compliant with the legal requirements. The supplier took follow-up action to improve
the failed component found.
92,7%
99.5%
99,1%
95,9%
98,7%
Accessories
Apparel
Footwear
Others
Overall (Jan-Oct)
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MANUFACTURING RESTRICTED SUBSTANCE LIST (MRSL)
Regarding MRSL conformance, we use ZDHC MRSL, an industry standard adopted by many brands/retailers
at the supplier level. Out of 131 core factories, 25 factories do not use chemicals during the manufacturing
process and therefore are out of the scope of MRSL.
In 2023, 96 of our core factories used either BHive, CleanChain, or E3 tools to track MRSL compliance. 86%
of Tier 1 factories and 94% of Tier 2 factories under the scope of our MRSL programme have an InCheck
Report, issued by ZDHC-approved solution providers to track MRSL compliance. These are the chemical
management platforms used to manage chemical inventory and generate Performance InCheck Reports,
which provide a summary of the MRSL conformance of the factory’s chemical inventory.
↗ T.36 MRSL STATUS*
Number of factories
In MRSL scope
With Chemical Inventory List
With Incheck Report
Core Tier 1
43
37
37
Core Tier 2
63
59
59
Total
106
96
96
*
The data is based on the Aug/Sep/Oct InCheck Report and only includes factories with a complete Chemical Inventory List (CIL)
The BHive app uses OCR technology to allow manufacturing facilities to take smartphone photos of
chemical product labels, generate a full and accurate chemical inventory, and quickly identify which
chemical products meet MRSL requirements used by many brands and retailers. Facilities can then see
which chemicals they should keep using and which they should phase out.
↗ CASE STUDIES
Gold Emperor Group is a footwear manufacturer in China that developed an Action Plan to improve
MRSL conformance in 2023. They analysed the MRSL conformance rate, based on the January to
July 2023 InCheck reports to make a list of the top Non-conformance Chemicals. Then they engaged
with the concerned chemical suppliers to request that they register in ZDHC Gateway platform and
submit the evidence that their chemicals comply with ZDHC MRSL (at least level 1) on this platform.
The factory improved its MRSL conformance rate from 31% in 2022 to 92% in 2023. This conformance
rate is very high compared to PUMA's average MRSL conformance rate of 71%.
Active Creation under DSC group is an insole factory in Vietnam that joined the Chemical
Management Improvement (CMI) programme of GIZ to improve its Chemical Management
performance. Under this programme, the factory completed training courses on chemical
management systems through an online platform. As part of this programme, a Chemical
Management Advisor visited the factory and prepared a Performance Improvement Plan. As a result,
this factory has significantly improved its verified Higg FEM Chemical Management scores from 18%
in 2022 to 60% in 2023.
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↗ T.37 MRSL CONFORMANCE
No. factory have InCheck report
96
No. factory has achieved MRSL target
59
% factory has achieved MRSL target
61%
Average MRSL conformance rate
71%
Based on a baseline of 45% in 2021, we set a goal of 70% MRSL conformance in 2023 for all factories with an
InCheck report. We exceeded the 2023 Goal with an average MRSL conformance rate of 71% for 96 factories
with an InCheck report. 59 out of 96 core factories reached a conformance rate higher than 70% MRSL
conformance by weight. 37 factories did not reach 70% MRSL conformance rate.
In 2024, we will strive for all core factories to have an InCheck report. We will organise customised training
sessions together with ZDHC and ZDHC-approved third-party laboratories, to improve MRSL conformance
rate for the factories. 2024’s MRSL conformance goal is 80% for all factories with an InCheck report.
In 2023, we worked with ZDHC-approved verifiers to conduct a verification of InCheck. The Verified InCheck
is an on-site review to establish credibility and trust in the chemical inventory that was used by the supplier
to generate their Performance InCheck Reports. The verification is done by a ZDHC-approved third-party or
second-party (brand representative) verifier who conduct “spot check” verification of specific parameters.
To pass the verification ≥ 80% of the spot check parameters need to be validated, then the factory gets a
passed Verified InCheck checkmark on their ZDHC Gateway account. Out of 96 core factories with InCheck
report, 79 went through the verification process. 75 obtained a passed verified InCheck report. The four
factories with a failed InCheck verification (less than 80% validation rate) were required to conduct a Root
Cause Analysis, create a Corrective Action Plan and re-verify after at least three months. We will follow up
on the implementation of their action plan and will re-verify in 2024.
Besides using a chemical inventory to control input chemistry, we also use wastewater tests conducted by
accredited independent laboratories to ensure no harmful chemicals are released through the wastewater
of our manufacturer’s facilities with wet processing. The results of these tests show a compliance rate of
over 90% for each parameter, with most parameters scoring 99 or 100% compliance.
More details on wastewater testing are provided in the Water and Air section of this report.
VOLATILE ORGANIC COMPOUNDS
With much collaborative effort, we continue to edge closer toward our 2025 target of limiting volatile organic
compounds (VOC) emissions to 10 g per pair of footwear produced. Although we faced certain supply chain
difficulties in 2023, including the increased bonding requirements for our fast-growing performance
categories, we have again managed to reduce our VOC and for 2023 we are reporting 12.5 g per pair. Looking
towards 2025, we remain confident of achieving our 2025 target, through the increased use of water-based
adhesives, as well as further innovations within our adhesive suppliers.
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↗ G.25 VOC INDEX DEVELOPMENT OVER TIME
1
1
Since 2019 figure-based for core suppliers in alignment with the general reporting scope.
Actual
EU Eco Label (18 gr/ pair)
2025 Target (10 gr/pair)
70
60
40
20
10
0
50
30
g / pair of shoes
Year
66.7
56.2
46.8
43.0 42.2 39.8 41.2 40.2 37.0
33.1 30.7 28.7
24.1 21.2 20.9 17.7
15.6 14.7 13.6 13.2 12.5
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
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WATER AND AIR
TARGET DESCRIPTION:
• Industry good practice for effluent treatment is met by 90% of core PUMA suppliers with wet-processing
facilities
• Industry good practice for air emissions is met by 90% of core PUMA suppliers with significant emissions
• Reduce water consumption at PUMA core suppliers per pair or piece by 15% (based on 2020 baseline)
Relates to United Nations Sustainable Development Goals 6, 14 and 15
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Ensure regular wastewater testing at relevant suppliers
• Ensure regular air-quality assessments at relevant suppliers
• Support the development of an industry-wide air quality standard
KPIs:
• Percentage of core suppliers meeting good practice standards for wastewater
• Percentage of core suppliers meeting good practice standards for air emissions
• Percentage of water saved per pair/piece
WATER ROADMAP AND RISK ASSESSMENT
In 2021 we developed a water roadmap and conducted a risk assessment using our risk assessment
methodology.
WATER ROAD MAP
Below are some key focus areas for the coming years. The measures below are a continuation of the ones
started in 2021.
• Raise awareness: As a part of Higg FEM training, we provided training to suppliers on how to improve
their score in water and wastewater sections. The cleaner production programmes like Clean by Design
(CbD), and PaCT provided support to suppliers to help them reduce water consumption in selected core
factories. The targets on water consumption reduction and ZDHC wastewater compliance rate were
communicated to the suppliers during supplier meetings. We also reviewed these KPIs in one-to-one
meetings with our core suppliers.
• Knowledge of impact: We continued our Life Cycle Assessment (LCA) journey for our top selling
products. In 2023 we conducted LCA of three types of sports jerseys made of virgin polyester, PET
recycled polyester and RE:FIBRE polyester. We also completed an LCA to compare cotton fabric with a
75/25 blend of virgin and recycled cotton. LCA results are reported under the Products section of this
report. As a part of Higg FEM self-assessment the core suppliers and selected noncore suppliers have
conducted water risk assessments by using either the WRI Aqueduct Tool or the WWF Water Risk
Filter. In 2023, we conducted a waste governance mapping for our top three sourcing countries,
summarised their water policy landscape and mapped key local stakeholders. We also conducted a
water risk assessment for our wet processing core factories.
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• Internal action: Our Material and Development teams continued to launch products with a reduced
water footprint. We created a Microsoft excel tool for internal decision making which compares the
environmental impact of alternative materials. Our suppliers improved their efforts to recycle treated
wastewater, process optimisation, implement rainwater collection etc. to reduce the water footprint in
the supply chain. Some of the case studies are presented in this report.
• Collaboration and partnership: We continue to participate in industry-wide cleaner production projects,
which include water efficiency measures.
WATER RISK ASSESSMENT
WATER RISK ASSESSMENT AT OUR OWN OPERATIONS
In 2022 we added a water risk mapping for our PUMA sites (offices, stores and logistic centres) globally.
Using the WWF Water Risk Filter, we identified 164 sites in areas of water scarcity. For the sites, we
identified the water consumption and compared it to the water consumption of similar sites (offices, stores
and warehouses separately assessed). We also published an environmental handbook for our entities with
recommendations for water-saving measures. In 2023 we followed up with the identified sites and asked for
planned or implemented actions on water savings.
At our headquarters in Herzogenaurach, we collect rainwater on our property and use it in the office and the
surrounding green area. This helps us reduce our freshwater consumption and water costs.
Most of the other PUMA-operated sites globally are rented and both, rented as well as non-rented, none of
the sites use water for industrial processes. Therefore, our ability to reduce water consumption at our sites
is limited to using water-efficient kitchen equipment and sanitary facilities.
WATER RISK ASSESSMENT IN THE SUPPLY CHAIN
DETOX.Live is a public disclosure platform operated by ZDHC that provides an overview of suppliers and
their input and output control performance, including facility wastewater performance according to ZDHC
Wastewater Guidelines. Factory performance, after uploading the test data to ZDHC Gateway Wastewater
Module, is shown in three different colour codes on the public DETOX.Live map: green – facility meets the
ZDHC requirements, red - facility does not meet requirements, and orange - facility does not meet the
requirements but a CAP (Corrective Action Plan) was submitted.
We will use the DETOX.Live platform to check the wastewater performance of new factories that have not
connected with PUMA on the ZDHC Gateway. We can know whether new factories have implemented ZDHC
Wastewater Guidelines, and what their wastewater performance is like.
PUMA has also adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by geography, commodity and issue.
• Complete a risk assessment for suppliers, factories and sites.
• Manage risks that are material for each supplier, factory or site.
In 2023, we conducted a water risk assessment for 62 wet processing core Tier 1 and Tier 2 factories located
in six sourcing countries: Vietnam, China, Bangladesh, Taiwan, Cambodia, Turkey and Indonesia. We used
the WWF Risk Filter and WRI Aqueduct. With the WWF Risk Filter, we assessed basin risk covering water
scarcity, water quality and regulatory risk. With WRI Aqueduct, we assessed physical risk quantity and
quality, as regulatory and reputational risks.
We identified which factories are located in high and very/extremely high-risk areas. Then we looked at their
water KPIs, ZDHC wastewater standards conformance, MRSL compliance rate and their water consumption
reduction initiatives to mitigate water risks.
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Out of 62 wet processing factories, 50 have a high and extremely high-water risk level as per the WRI
Aqueduct. Out of these 50 high and extremely high-water risk level factories, 26 have a FEM 2022 water
module score higher than PUMA average, 31 factories have MRSL conformance rate higher than the PUMA
goal, 35 factories comply with ZDHC wastewater compliance, 15 have water KPIs above PUMA average and
13 factories have wastewater recycling practices. In the coming years, we plan to work with high and
extremely high-risk factories that do not have adequate risk mitigation measures in place. These activities
will include providing training and support in terms of improving MRSL conformance, corrective action
plans for ZDHC wastewater failures, improving Higg FEM water module score, enrolment in resource
efficiency programmes where possible, raising awareness of wastewater recycling and implementing water
reduction initiatives.
WATER GOVERNANCE
In 2023, we conducted a water governance mapping for our top three sourcing countries, namely Vietnam,
China and Bangladesh. We looked at the water policy landscape and identified key stakeholders. Challenges
and opportunities in water and wastewater management were also identified for each of the regions. We
found that water, wastewater policy and regulations are evolving with stringent requirements being
introduced progressively. We also see that interesting water projects are being undertaken in these
countries on water reduction and water recycling.
Vietnam has a national strategy on water, regulations on water security, water protection and development.
The five countries (Vietnam included) under the Mekong River Commission promote and coordinate the
sustainable management and development of water, for the mutual benefit of these countries and their
citizens’ well-being through a 2030 strategy. In addition, Vietnam has a national 2030 Water Resource
Strategy with a view to 2045. There are some fiscal incentives in place, such as tax reduction or exemption
schemes for the effective use of water. There are resource efficiency programmes such as FABRIC
programme by GIZ, HSBC water programme, Clean by design by Aii and WWF’s Greater Mekong Delta,
Vietnam improvement programme by IFC, and Race to Top by IDH. There is a need for more public-private
partnership projects to develop further competence for green business or to encourage green
production. There is also a legislation gap related to groundwater withdrawal.
China has an elaborate regulation on water and wastewater. In 2019, the country introduced the Developed
National Water Conservation Plan. The fourteenth five-year plan released in 2022 focuses on national water
security over the next 100 years, to target flood control and drought relief, utilisation of water resources,
optimal allocation of water resources to prevent uneven water distribution and aquatic ecology protection.
Water/resource efficiency improvement programmes launched in China include WWF’s water stewardship
programme, GIZ’s FABRIC programme, and the Clean by Design programme by Apparel Impact Initiative.
The Institute of Public & Environmental Affairs (IPE) publishes a Water Map, to visualise China’s ground
water and drinking water source quality over the years.
China is still having critical issues with the unbalanced distribution of water resources which leads to water
stress in specific areas, especially the east of the country where industries are blooming, and the population
is rapidly growing.
Bangladesh's latest regulation on water was introduced in 2013 and introduces amendments and new
regulations to promote water conservation in the country. Legal frameworks need to be consistent and
integrated, and account for all major water impacts and risks within Bangladesh. Falling groundwater
tables combined with the projected increased water abstraction rates are likely to threaten industrial
production. The cost of developing alternative water sources is substantial and could hinder growth. The
country is prone to flooding with a very high-risk rating by the WWF Risk Filter. Water Partnership for
Cleaner Textile (PaCT) by IFC and Sweden Textile Water Initiative (STWI) by Stockholm International Water
Institute are a few successful resource/water efficiency improvement programmes implemented in the
country.
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We mapped our core factories in these three countries to evaluate the risks and determine if mitigation
measures through our water-related goals and the factories' own initiative address these risks.
In coming years, we will engage with relevant stakeholders to promote water conservation and recycling in
these key sourcing countries.
LCA WATER DATA
In 2023, we did an analysis of Life Cycle Assessment (LCA) studies conducted during 2021 to 2023 with a
focus on water footprint*. The objective was to come up with an actionable framework for material selection
that would reduce our water footprint. Six footwear products, five apparel products, one accessory
product** and three types of cotton fabrics were analysed. The outcome is summarised below.
Among the three product divisions, the water footprint of apparel products was the highest, followed by
footwear and accessories.
Apparel: We found out that the consumer use phase of apparel products has the highest impact on the total
water footprint (44 to 81% of total lifecycle water footprint), which is due to consumers washing garments at
home. Since the use phase impact is not under our control, we excluded it from our water footprint
analysis. We observed that the fabric dyeing process at Tier 2 factories has a larger water footprint (8 to 29%
of the total lifecycle water footprint excluding the use phase) as compared to other manufacturing
processes such as spinning, knitting, garment manufacturing and packaging. It was found that the water
footprint of cotton is larger than that of polyester material. This is mainly due to the water consumption
during cotton cultivation. This also explains why recycled cotton has a smaller water footprint than virgin
cotton. From a water impact perspective, recycled polyester appears to be the best option. The analysis
indicates that selecting materials with less water impact such as recycled cotton and polyester and
materials made of Better Cotton fibre helps to reduce our water footprint. Better Cotton helps farmers to
use water in a way that is environmentally sustainable, economically beneficial and socially equitable. This
water stewardship approach can improve crop yields, strengthen resilience to climate change, minimise
negative impacts on water quality and enable fair water access for all users in a catchment area. The
analysis also indicates that we should focus on improving the water efficiency of the dyeing mills. This could
include the installation of low-water ratio dyeing machines, waterless dyeing machines and recycling of
wastewater.
Footwear: The Life Cycle Assessment (LCA) of footwear highlights the various environmental implications
connected with various materials and phases of manufacture. Notably, Ethyl Vinyl Acetate (EVA) which is
generally used as a midsole, appears to be a low water footprint substance, providing a better
option. Polyurethane (PU), leather, and natural rubber, on the other hand, have larger water footprints. This
calls for our innovation and material team to focus on having more recycled materials such as recycled
polyester, recycled PU, recycled rubber and recycled EVA. We mainly source leather from tanneries which
are LWG certified. In 2021 LWG released a new version of the LWG audit standard, bringing major changes to
how they assess leather manufacturers, this will help to further reduce the water footprint of leather
footwear products.
*
Water Footprint is expressed in terms of blue water consumption (BWC), which means freshwater consumption sourced
from surface and ground water
** Since there is only one accessory product for which the LCA was conducted so far, there was not enough data to compare
among accessories materials and reach a conclusion. Hence, the analysis on accessory materials was excluded from the
above description.
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MRSL WASTEWATER TESTING
Since 2015 we have increased the number of wastewater tests from 33 to 153 factories and in 2023 we
received 276 Wastewater test reports. 97% of all factories with wet-processing facilities (157 factories have
wet processes) have been covered by tests, and tests show that all these factories have at least a 90%
compliance rate with the ZDHC Wastewater Guidelines (Foundational level). ZDHC has created a three-level
approach to the limits for heavy metals and conventional parameters to promote continuous improvement.
The limits get more stringent as they move from Foundational, Progressive to Aspirational levels.
All 153 suppliers have a ZDHC ClearStream report. ClearStream report, an easy-to-read facility
performance report of ZDHC wastewater conformance, is automatically generated on the ZDHC gateway
platform. To obtain a ZDHC ClearStream report, the factories must conduct wastewater testing following the
ZDHC Wastewater Guidelines at one of ZDHC Accepted Laboratories, and all test results must be uploaded
to the ZDHC Gateway Platform by the laboratory.
Out of 153 factories, 117 factories are fully compliant with all ZDHC Wastewater Guidelines requirements.
Where a wastewater test failed, we helped factories to conduct a root cause analysis and create corrective
actions for wastewater and sludge, using the industry standard template. In 2023, we followed up with those
factories that failed to fully comply with the Wastewater Guidelines, and received ten corrective action plans.
We will continue to follow up through 2024 to obtain corrective action plans and we will evaluate further
measures that need to be taken. We will also follow up on their implementation through wastewater testing
in 2024.
In 2023 we partnered with an accredited third-party laboratory to organise training on chemical
management and wastewater conformance, as well as root cause analysis and corrective actions for non-
conformance. Case studies of conventional parameter failures have been presented in the training.
The overall compliance rate for each category is:
• Conventional wastewater parameters: 99%
• Heavy metals: 99%
• Restricted chemicals (MRSL): 98%
The overall compliance rate for conventional parameters increased by 1% in 2023 as compared to 2022, the
compliance rate for heavy metals was maintained at 99%, and the compliance rate for restricted chemicals
has fallen by 1%. The reason for the lower compliance rate for restricted chemicals this year is that 50% of
the factories do not comply with new substances listed in ZDHC Wastewater Guidelines Version 2.1, which is
a new version that came into effect in 2023.
The conventional wastewater parameters, apply only to suppliers which discharge their wastewater directly
into natural water bodies. Test results show over 90% compliance with the ZDHC Wastewater Guidelines
(Foundational level). For heavy metals and restricted substances, the test results also show over 90%
compliance for each parameter with the ZDHC Wastewater Guidelines. This means we have achieved our
wastewater quality target as a part of our 10FOR25 sustainability goals.
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↗ G.26 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – CONVENTIONAL
PARAMETERS
↗ G.27 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – HEAVY METALS
*
Antimony is subject to an exemption for mills that produce or dye polyester fabric because the antimony is used as a catalyst
for polyester production and it is natural to have antimony in the wastewater. This is acceptable as per ZDHC Guidelines.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
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↗ G.28 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – RESTRICTED
CHEMICALS
SUPPLIER TRAINING
To help our suppliers better understand the requirements set by PUMA and the industry, we trained
suppliers in standards, guidelines, tools as well as methodology for nonconformance investigation and
remediation. Case studies of restricted chemicals and heavy metal parameter failures were used in the
training.
↗ T.38 SUPPLIER TRAINING
Virtual Training
Training
scope
Topics
Number of
factories
Number of
participants
% factories
trained*
ZDHC Wastewater and Root Cause
Analysis & Corrective Actions
Conducted 4 sessions in 3 different
languages
All Tier 1
and core
Tier 2 with
wet
processing
ZDHC WW guidelines V
2.0 and implementation
Root Cause Analysis &
Corrective Actions for
Non-conformance
Wastewater
95
182
61%
*
% of factories joined the training, based on the total number of factories in the scope for this training. 61% of factories
participated in the training as some of the factories are aware of these requirements and methodologies and hence did not
join the training.
In 2023, we partnered with an accredited third-party laboratory to organise a “Chemical Management on
Wastewater Conformance Updates Training and Root Cause Analysis/Corrective Actions” for suppliers not
conformant with the ZDHC Wastewater. Case studies of conventional parameter failures were used in the
training.
A total of four training sessions were conducted in three different languages. More than 180 participants from
95 factories joined. More than 90% of participants were satisfied with the training arrangement and content.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
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The training helped the factories’ participants to understand the new ZDHC Wastewater Guidelines, along
with implications and impacts on their facility of the key updates. It also clarified how to conduct a
Wastewater Root Cause Analysis and take Corrective Actions in the event of a non-compliant test result.
After the training, the factories which were not compliant with the ZDHC Wastewater Guidelines, were
required to conduct a Wastewater Root Cause Analysis and provide Corrective Actions. We received ten
Corrective Action Plans from ten factories. We will follow up on their implementation through wastewater
testing in 2024.
In addition, we encouraged suppliers’ chemical management teams to attend in-depth training courses as
part of the ZDHC Academy, which is conducted by ZDHC-approved service providers.
WATER SAVING
In 2023, we expanded the participation of our core Tier 1 and Tier 2 suppliers in cleaner production
programmes to improve energy and water efficiency.
Below are the annual savings from completed and ongoing projects between 2019 and the end of 2023:
• Greenhouse gas reduction: 90,182 tCO2e per year
• Renewable energy: 247 MWp of RE capacity (including offsite wind) added in 2021, 2022 and 2023
• Water saving: 2,401,002 m
3 per year
• Energy saving: 177,168 MWh per year
Apart from our 10FOR25 targets, we have set a target to reduce water consumption by 15% per unit of
products manufactured in 2025 compared to the 2020 baseline.
For further data on water consumption, please refer to the Environmental Key Performance Data section of
this report.
↗ G.29 PUMA CDP WATER SCORE
PUMA’s CDP water score improved from B- in 2021 to B in 2022. Until the end of January, 2024 we retained
our B score. For more information, please visit the CDP website.
C
2020
B-
2021
B
2022
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↗ CASE STUDY
Water reduction at two suppliers
Tai Hing Zipper, introduced an innovative wastewater treatment and recycling plant for its dying
system in 2022 with an investment of $ 800,000. This advanced biological treatment along with a
water recycling plant, helps in conserving 90% of water for every kilogram of fabric. From its early
stage of implementation to the present, water usage and wastewater output have been significantly
optimised. Previously, consuming 100 m
3 of water per day in the dyeing workshop, the factory has
progressively reduced its water consumption to an average of 10 m
3 per day for the same production
volume. The factory has adopted an innovative technology called the A/O process for the treatment of
wastewater generated from its dyeing operation. This allows for the recycling of the treated
wastewater back into the dyeing process. The factory has also installed a chemical index monitor to
facilitate the monitoring of the treated wastewater quality.
SQUARE Fashions Limited (SFL), a vertically integrated readymade garments manufacturing
company has placed significant emphasis on sustainability and environmental responsibility. To
further enhance these goals, SFL implemented various measures in 2023 to reduce its impact on
water. These include the installation of a water reclamation plant, rainwater harvesting systems,
reuse of steam condensate water, process optimisation, reuse of machine cooling water and raising
awareness amongst employees. These initiatives resulted in a reduction of 36.3% as compared to
2022 in groundwater consumption. This accounts for an absolute annual saving of 1,128,755 m
3 and a
financial savings of 10 million BDT ($ 97,785) in 2023.
↗ T.39 E-KPIS – WATER
1-6
Water
2023
2022
2021
2020
2019
2018
Change
2020/2023
Total Water from own operations (m³)
142,565 147,227 116,829
96,569
89,767 95,291
47.6 %
Public network consumption (m³)
137,651 143,332 116,829
96,569
89,767 95,291
42.5 %
Rainwater consumption (m³)
4,914
3,895
Total Water from PUMA production (core Tier 1&2)
(k m³)
7,322
8,507
8,475
7,128
2,572
2,030
2.7 %
Total Water from PUMA production (Tier 1) (k m³)
2,157
2,551
2,706
2,332
2,572
2,030
-7.5 %
Total Water from PUMA production (Tier 2) (k m³)
5,164
5,956
5,769
4,796
7.7 %
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimations where no real data could be provided
3
Methodological changes over the last three years have influenced results
4
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
5
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
6
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
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Although we do not have any goal for absolute reduction in water consumption from our core suppliers, we
continue to track their water consumption. In 2023, the absolute water consumption has decreased by 7.5%
for Tier 1 suppliers, as compared to the baseline of 2020. This is achieved due to a decrease in production
volume for apparel by 15% and an improvement in water usage efficiency per pair of footwear by 21.5%
during the same period.
For Tier 2 suppliers, absolute water consumption has increased by 7.7% compared to the baseline of 2020,
despite a significant increase in production volume in all Tier 2 divisions (12% for textiles, 7.3% for leather,
and 171% for PU). It is worth noting that water usage efficiency at textile production, the highest contributor
to water usage, has improved by 4.9% (from 103 to 98.3 m
3/ton of fabric), due to the water-saving measures
taken by the suppliers including the installation of water recycling plants by some suppliers towards end of
2022. The increased usage of recycled materials such as recycled cotton and recycled polyester has also
contributed to less water consumption.
AIR EMISSION
AIR EMISSION AT OUR OWN OPERATIONS
In terms of air emissions, there are no significant air emissions to report from our own sites. We have
outsourced all manufacturing to external manufacturing partners and at our largest sites globally we do not
have any industrial processes which could create air emissions. The only exception is our own
manufacturing site in Argentina, which is covered by our supply chain efforts listed below.
For our largest site, our global headquarters, we use district heating and heat pumps for heating, resulting
in zero direct air emissions from the building. This fact was confirmed during our ISO 14001 certification
audit in 2022.
AIR EMISSION IN OUR SUPPLY CHAIN
Since the publication of the ZDHC Air Emission Guidelines was still not been finalised in 2023, we decided to
internally monitor our core supply chain’s performance regarding air emissions. We designed a set of
questionnaires to gather the relevant air emission compliance information for our 131 core factories (Tier 1
and Tier 2), towards local regulations (samples are selected by the factories and tested towards the
requirements provided by the local environmental authorities).
The result shows that 100% of the core factories sampled were compliant with the local regulation for air
emission in 2023.
ZDHC AIR EMISSION GUIDELINES PILOT
In 2023, ZDHC circulated a draft air emission guideline V1.0 to the Air Emissions Task Team for review. We
tested the draft guideline in our supply chain through a pilot study. The objective was to evaluate suppliers'
readiness to comply with ZDHC draft guidelines and to provide feedback for review by the Task Team.
We partnered with a third-party laboratory, Eurofins MTS, to collect chemical samples and conduct tests
from six factories in Vietnam and two factories in China, out of which four are footwear factories and four
are apparel factories. The tests include the measurement of total VOCs (TVOCs) and calculate the Potential
to Emit (PTE), using the methodology referenced in the draft guidelines. We will share this data with ZDHC
to help establish the Foundational limit value for TVOCs in the guidelines. We also tested Hazardous Air
Pollutants/Toxic Air Pollutants (HAP/TAP). Out of 833 collected chemical samples, we detected HAP/TAP in
132 samples accounting for around 15.8% of total samples. Further breakdown indicates 13.2% of samples
are from footwear factories and 2.6% are from apparel factories. However, these factories have a high MRSL
conformance rate which is verified by a third party and they provide appropriate personal protective
equipment to their workers. ZHDC has not yet specified any limits for these air pollutants in the draft
guidelines.
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We also collected air emission samples from three factories (one apparel Tier 2, one footwear Tier 1, one
footwear Tier 2) to test the air pollutants. Tests included air pollutants from point sources i.e. combustion of
fuels and fugitive emissions from the production processes as per the draft guideline. The draft guidelines
do not yet specify any limits for World Health Organization (WHO) pollutants like Particulate Matter (PM),
Nitrous Oxides (NOx) Sulphur Oxides (SOx), and Ozone and globally regulated air pollutants like Carbon
Monoxide (CO) and Volatile Organic Compounds (VOCs); they will be incorporated into future updates to the
guidelines. In the absence of ZDHC limits, these results were compared with local regulation limits
wherever available, and the test results show 100% compliance.
We will communicate the test results with the factories and work to identify the root causes of test results
with high values. We will also discuss our results with ZDHC to find solutions on how to address high values,
particularly for TVOCs in footwear factories.
Note: Since we are following Greenhouse Gas protocol for Greenhouse gas estimation, the calculation of greenhouse gas was
excluded from the scope of this pilot study.
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PLASTICS AND THE OCEANS
Target description:
• Support initiative and scientific research on microfibres, work with core suppliers to reduce microfibre
release
• Research biodegradable polyester for use in PUMA products
• Eliminate plastic bags from PUMA stores and review the impact of hangers and fixtures
Relates to United Nations Sustainable Development Goals 3, 14 and 15
KPIs:
• Tons of plastic bags used in PUMA stores
• Percentage of PUMA offices that have eliminated single-use plastic
• Percentage of plastic packaging recycled
Plastic pollution in our oceans is one of the most urgent challenges to sustainability of our time. As a
company that uses polymers for most of its products, we have a special responsibility to work on this issue.
Avoiding plastic pollution is one of the three pillars of the Fashion Pact, of which PUMA is a founding
member. Also, several countries and regions have formed initiatives to ban certain types of single-use
plastics or plastic bags.
Therefore, we have added Plastics and the Oceans to our 10FOR25 Sustainability Strategy as well as our
sustainability bonus targets.
↗ T.40 ELIMINATION OF SINGLE USE PLASTICS
Sub-targets
2021
2022
2023
Target 2025
Plastic consumer shopping bags (stores, tons)
189
99
0
0
Plastic consumer shopping bags recycled content (%)
80%
80%
NA
Zero plastic bags
Plastic hangers used in stores (stores, tons)
134
160
176 Switch to recycled content or wood
Plastic hangers with 100% recycled content (%)
97%
99.9%
99.9%
100%
Primary and transit* plastic packaging (tons)**
558
2,297
3,057
Switch to recycled content or
paper
Primary and transit* plastic packaging with recycled
content (%) **
100%
99.6%
99.5%
100%
Offices that have eliminated single-use plastic cups
and cutlery (%)
88%
91%
92%
100%
*
Transit packaging from factory to warehouse
** 2023 full year data is proliferated based on actual Q1-Q3 data and 2022 record.
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Plastic shopping bags and single-use plastics aggravate the problem of plastic pollution significantly. By
eliminating them from our stores and office environment, we have set a positive example for our consumers
and colleagues and at the same time reduced our use of plastics by several hundred tons per year.
In recent years we switched our shopping bags to FSC-certified paper bags.
Our stores ordered 430 tons of consumer-facing polyethylene bags in 2019 and 400 tons in 2020. In 2021 our
stores ordered 189 tons. Finally, in 2022 our stores ordered 99 tons of consumer-facing plastic bags. As of
January 1st, 2023, we have replaced all polyethylene bags for consumer use with paper bags or durable
multi-use bags for sale in our owned and operated PUMA stores.
At the same time, we switched other plastic items in our retail stores, such as hangers and shoe fixtures, to
recycled polymers or FSC-certified wood. We also started working on more environmentally friendly
solutions for our B2B product packaging for apparel and accessories, which is also based on polyethylene
bags. As a result of these efforts, we switched our transit packaging B2B plastic bags to 100% recycled
content and also optimised the thickness to save on weight. Our labeling and packaging team is investing
time and resources in exploring environmentally optimised packaging solutions. For example, we piloted
transit bags made from paper in the USA. In 2023 we rolled out transit bags made from FSC-certified paper
for selected products.
According to our zero plastic target for primary product packaging, we also switched most B2C plastic
primary packaging to paper. For the few remaining plastic items like hangtag strings, we worked on non-
plastic or recycled plastic alternatives. At our offices, we have challenged our catering partners and
employees to avoid single-use plastics such as coffee cups, lids, stirring sticks, cutlery or straws. In 2021
88% of our offices globally had already eliminated single-use plastic cups and cutlery. This figure increased
slightly to 91% in 2022 and 92% in 2023.
FSC certified packaging for apparel products
On a product level we finished the pilot experiment of a compostable version of our most iconic sneaker, the
PUMA SUEDE. The pilot included the use of a fully biodegradable outsole made from thermoplastic
polyurethane (TPU). For more information on RE:SUEDE, please refer to the Circularity section of this
report.
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MICROFIBRES
All types of fibres have a propensity to shed to some extent, and understanding the full impacts of their
physical and toxicological presence is a growing area of research therefore we must not limit our focus to
synthetic materials.
Led by science, The Microfibre Consortium (TMC) seeks to understand both the drivers of fibre
fragmentation and, through external sources of research, the impacts on human health and ecosystems,
such that we can collectively take the right actions to mitigate negative impacts. PUMA joined The Microfibre
Consortium (TMC) as one of the signatory members to understand and address the environmental concerns
surrounding fibre fragments (microfibre) as generated from natural and synthetic clothing during
manufacture and the consumer use phase in the industry.
In 2023, we continued with microfibre shedding tests to measure microfibre release from our polyester
products during washing. We conducted 12 tests on selected 100% polyester fabrics following the TMC test
method to quantify fibre loss from fabrics that reflect that found in domestic laundering, during the initial
washing cycle. Fibre release results are expressed as a percentage of mass. The tests results indicate that
microfibre loss from PUMA's fabrics is lower than the average microfibre loss available on the Microfibre
Data Portal. Specifically, PUMA's average 0.0579%, compared to the TMC database average of 0.0587%. For
related definitions, please visit Static.
We have received feedback from TMC regarding the shedding data, and we understand that analysing it is
complex and ongoing. So far, there is not a clear trend showing which yarn or structure type sheds more
among the signatories. TMC has requested more data entries, and we will continue to participate in and
support this study as an industry.
In October 2023, PUMA joined a field trip to King's College London with 40 other delegates. TMC teamed up
with specialist test instrument manufacturer James Heal to hold the first public demonstration of the TMC
Test Method for fibre fragmentation from fabric.
PUMA remains committed to the TMC 2030 roadmap released in September 2021. PUMA has pledged to
support this roadmap and its objectives, including increasing the understanding of fibre fragmentation
through research, implementing mitigation strategies once they become available in the industry, and
contributing to progress through active participation in task teams with a goal of global implementation.
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CIRCULARITY
TARGET DESCRIPTION:
• Set up or join product take-back schemes in major markets
• Reduce production waste to landfills by at least 50% (shared target)
• Develop recycled materials as alternatives to leather, rubber, cotton and polyurethane (shared targets)
Relates to United Nations Sustainable Development Goals 9, 12, 14 and 15
KPIs:
• Percentage of major markets with take-back scheme
• Amount of waste sent to landfills
• Percentage of recycled polyester, cotton, leather, rubber and polyurethane
We are aware that the linear business model currently applied in our industry is far from the ideal concept
of a circular economy. The growing amount of textile waste sent to landfills is an emerging risk. Rethinking
the way we produce and moving towards a more circular business model is one of the priorities of our
Sustainability Strategy over the coming years.
We begin our journey with product design. Building on our Circular Design training with Circular Economy,
we rolled out an e-learning tool on circularity for all PUMA colleagues globally. Based on the PUMA identity
and our material toolboxes we identified circular design approaches around the longevity and cyclability of
our products. The e-learning covers our Circularity Policy, as well as our circular design guidelines.
During 2023, our largest business units held circularity workshops in which the options for transitioning
iconic PUMA products into more circular products were discussed.
CIRCULARITY INNOVATION
In 2021 we launched PUMA Circular Lab, our platform for speaking and learning about circularity together
with our customers. The first project was the RE:SUEDE, an experiment for a biodegradable shoe, made
with chrome-free Zeology Leather, hemp, cotton and a biodegradable TPE sole. It launched in 2022 with a
first batch of 500 pairs. The shoes were worn for six months by participants and then sent back to PUMA. In
December 2022 over 400 pairs of RE:SUEDEs were sent to an industrial composting facility in the
Netherlands, where they were prepared for the composting trial that was completed in 2023. The
composting results were made public so that anyone interested in compostable footwear can use our
lessons learned.
In apparel, we expanded our textile-to-textile recycling programme, which we renamed from RE:JERSEY to
RE:FIBRE. The initiative enables the recycling of fabric waste, as well as worn or unsellable polyester items
(for example unsellable polyester items due to expired licensing contracts) through an innovative chemical
recycling process into new textile items. We continue to partner with several teams for this project:
Manchester United, AC Milan, Olympique de Marseille and Borussia Dortmund as well as the Swiss Football
Federation. We collect used polyester products at the clubs’ fan shops and our own PUMA store in
Herzogenaurach. These products are sorted, and – where possible – enter the recycling stream to make
new polyester products.
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RE:FIBRE activations with BVB, Manchester City and AC Milan
During the Women’s Football World Cup in Australia, the Switzerland team played in jerseys made from
fibre-to-fibre recycled polyester. For 2024 we plan a further and significant extension of the RE:FIBRE
programme to cover the jerseys of all major football clubs and federations, scaling up the programme to
over 1 million produced items.
Swiss national women’s football RE:FIBRE jerseys
In addition to our existing RE:FIBRE initiative on recycled polyester, we started looking into innovative
processes of cotton recycling, such as using 100% (pre-consumer) recycled cotton in selected products and
the opportunity to recycle cotton waste into viscose-like materials.
RECYCLED MATERIALS USAGE
We encourage all our suppliers to reuse and recycle the fabric waste they are creating for PUMA production,
either through applications outside of our industry or ideally, by recycling offcuts into new polyester or
cotton yarns.
We have set circularity targets, for example, scaling up the use of recycled polyester and using recycled
alternatives to leather, rubber and polyurethane (PU), the materials we use most frequently after cotton and
polyester. Our material toolboxes include recycled material options for all these materials. In 2023, we also
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started looking at the potential of using secondary raw materials from innovative footwear separation
technologies.
In 2023, we delivered a million pieces of our downtown collection, made with at least 20% recycled cotton.
The percentage of recycled polyester increased for all product divisions from 14% in 2020 to almost 62% in
2023. The percentage of recycled cotton for our apparel products increased from 0.6% in 2020 to 8.6% in
2023, and for footwear, it increased from 0.5% to 1.6%.
PRE AND POST-CONSUMER WASTE IN THE SUPPLY CHAIN
Around 77% of pre-consumer waste was either reused or recycled by our core Tier 1 suppliers and around
94% of waste was either reused or recycled by our core Tier 2 suppliers in 2023. Compared to 2022, we
observed an increase of 20% in reused/recycled waste for core Tier 1 and an increase of around 4% for core
Tier 2. This increase is mainly due to the adoption of better waste disposal practices by our suppliers to
divert waste from landfills. For textile and fabric waste, 7.2% of waste was sent to incineration by core Tier 1
factories while core Tier 2 factories sent only 1% of waste to incineration.
↗ T.41 PRE AND POST-CONSUMER WASTE
1
Volume of recycled leather, from production waste
1.5 tons
Volume of recycled cotton, from production waste
2,901 tons
Volume of recycled polyester, from post & pre-consumer waste
27,042 tons
Volume of recycled nylon, from post-consumer waste
168 tons
Core T1*
Core T2**
Quantity of pre-consumer waste generated annually
37,379 tons
208,489 tons
% of pre-consumer waste sent to reuse or recycling
76.9%
94.3%
% of textiles and fabric destroyed (sent to incineration)
7.2%
1.0%
*
Core Tier 1 Supplier factories Apparel, Footwear & Accessories (54 factories)
** Core Tier 2 Supplier factories Leather, PU and Textiles (40 factories)
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
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↗ T.42 FABRIC WASTE
1-4
Year
Total
Fabric
Waste in
Tons
Reuse &
Recycle
(Tons)
Reuse &
Recycle
(%)
Incineration
(Tons)
Incineration
(%)
Landfill
(Tons)
Landfill
(%)
Footwear core Tier 1
2023
5,681.2
2,503.1
44 %
2,486.7
44 %
691.4
12 %
2022
6,554.4
2,348.0
36 %
4,184.2
64 %
22.3
0 %
Apparel core Tier 1
2023
6,245.5
6,222.2
100 %
23.4
0 %
-
0 %
2022
8.3
8,145.0
98 %
179.0
2 %
-
0 %
Accessories core Tier 1
2023
231.6
231.5
100 %
0.1
0 %
-
0 %
2022
990.6
236.4
24 %
0.1
0 %
754.3
76 %
Textile core Tier 2
2023
1,933.9
1,838.7
95 %
95.3
5 %
-
0 %
2022
2,073.8
2,056.0
99 %
17.9
1 %
-
0 %
Synthetic Leather (PU) core
Tier 2*
2023
170.3
88.2
52 %
82.1
48 %
-
0 %
2022
182.8
181.1
99 %
1.7
1 %
-
0 %
Total
2023
14,262.5
10,883.7
76 %
2,687.5
19 %
691.4
5 %
2022
18,126.1
12,966.5
72 %
4,382.9
24 %
776.6
4 %
*
Fabric waste originated from PU coated material with fabric backing (PU on top + fabric at bottom)
1
Data includes extrapolations or estimations where no real data could be provided
2
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
3
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
4
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Except for Footwear production that still has fabric waste sent to landfills, 100% fabric waste from Apparel,
Accessory, Textile, and Synthetic production was diverted from landfills. Compared to 2022, we observed an
increase in reuse and recycle proportion and a decrease in incineration proportion while disposal in landfill
percentage remains stable. This change was due to the adoption of better waste disposal practices and
reflects a gradual shift towards a circular approach by our suppliers.
In 2023, 95% of fabric waste resulting from PUMA production was diverted from landfill. This is evident as
76% of total fabric waste was either reused or recycled and 19% was sent to incineration. Only 5% of total
fabric waste ended up in landfills.
TAKE-BACK SCHEMES
To demonstrate our responsibility as a producer and to secure options for more circular material flows in
the future, we have set a target to join or offer take-back schemes in all our major markets by 2025.
In 2023 we introduced a new take-back scheme in Switzerland, piloted take-back bins in selected stores in
Argentina and China and expanded our existing take-back scheme in the USA into the category of apparel.
These new expansions complement our existing take-back schemes in Australia, Hong Kong, the USA and
the clubs taking part in the RE:FIBRE project. Our colleagues at PUMA North America continued to work
with Soles for Souls and collected 4,348 kg of used shoes, an initiative where shoes can be donated for
reuse in support of a charitable cause. Our colleagues in Australia were able to collect 3,900 kg of used
products.
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Since September 2019 PUMA customers in Hong Kong have been able to put their used sportswear to good
use and support disadvantaged communities across the world, as we teamed up with the non-profit
organisation, Crossroads Foundation. Hong Kong customers can donate used garments of all brands at
PUMA recycling bins, which have been set up in four selected stores. During 2023, 1,442 kg of used products
were collected. At our German headquarters we collected 385 kg of products through our take-back
scheme, which means that in total we collected over 10 tons of products for recycling or donation with our
take-back schemes globally for the first time. For 2024, we plan to expand our coverage of take-back
schemes further, for example in India and Germany.
SWAP SHOPS
SWAP shops are a free and local exchange where people can pass on things they no longer want, in
exchange for something they need. It helps people refresh their wardrobe without having to shop for
something new. Products get a new chance to be worn again and it promotes sustainability in a fun way. In
2023 the fourth PUMA SWAP Shop was held in Hong Kong to promote a “recycle and reuse” culture. It was a
public event to swap clothes and accessories. More than 460 guests joined and more than 2,320 items were
given away (more than four items per guest). 67 boxes of garments (1,013 kg) were donated to two NGOs:
Crossroads and Redress. Another SWAP Shop took place for the second time at our Headquarters in
Germany for our own employees. Over 400 items were swapped and the remaining ones were donated to
our employees’ charity organisation, Charity Cat. PUMA North America organised its first SWAP shop and
had a very positive response from over 130 employees swapping more than 1,000 articles.
SWAP Shop in PUMA North America
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PRODUCT CARE GUIDELINES
In 2023 we initiated the publication of care and repair guidelines for consumers to help keep their products
in good condition for a longer time. We focus on the most common reasons why people end up throwing
away their sportswear and offer easy tips to treat these problems. We promote natural ways to treat stains
and odours as well as conscious washing and drying practices to reduce user-phase impact.
UNSELLABLE PRODUCTS
We are aware that due to contractual restrictions, a certain number of unsold products must be occasionally
discarded, for example when a license contract with a partner club expires. We have a process in place to
ensure that this happens to PUMA products only in exceptional circumstances. Our production forecasts are
as accurate as possible to actively prevent high product inventories and their intrinsic management costs.
Unsold seasonal products are placed through different channels until they are sold. Returned products that
have not been worn are placed on sale again. Returned products with small defects but in good condition
are donated and only returned products that are very worn or severely damaged need to be discarded. No
new product should be destroyed without the explicit demand of an expiring licensing partner nor a new
product shall be destroyed as a solution for inventory management. We have created a reporting structure
to identify with accuracy the quantity and reasons for such cases. In 2023, the amount of disposed articles
was equivalent to 0.25% of our total material consumption. These products were sent to a recycling facility
(where available). In countries where such recycling facilities do not exist, the products were shredded.
WASTE ROADMAP AND RISK ASSESSMENT
In 2021 we developed a waste reduction roadmap and conducted a risk assessment.
WASTE AT OUR OWN OPERATIONS
At our own operations, the most significant fractions of waste are paper and cardboard (notably from outer
carton boxes, shoe boxes and office paper usage), poly bags used for transport product packaging and
household waste such as organic waste from our canteens. Since we do not operate any industrial
manufacturing facilities (with one exception in Argentina), the amount of hazardous waste created in
PUMA’s own operations is very low at 36 tons. The 36 tons originate from our factory in Argentina (26 tons)
and the exchange of old lighting systems to LED at the PUMA headquarters (9 tons). All hazardous waste is
handled strictly in line with hazardous waste regulations.
During 2023, we reminded our PUMA subsidiaries to engage in waste separation and recycling.
Consequently, we could increase the rate of recycled waste from 44% in 2019 to 64% in 2023.
WASTE IN THE SUPPLY CHAIN
For our supply chain, the waste data published in our report includes material waste, along with factory and
office operational waste: cardboard, paper, plastic, light bulbs, etc. to ensure a comprehensive scope for the
waste generated on production sites. We see plastics, chemicals, oil lubricant waste and e-waste as high
risk. To prioritize our actions, we analysed waste data collected in 2020 and the Higg FEM waste
management score of our core factories.
Below are the key focus areas for the coming years. Some actions were taken in 2023 and are covered below.
• Raise awareness: As a part of Higg FEM training, we have provided training to 210 suppliers factories on
how to improve their score in waste management. As a result of these trainings, the average Higg FEM
score for the waste module increased from 45% in 2022 to 53% in 2023, which was higher than the
industry median of 40% in 2023. The target for reducing the amount of production waste going to landfills
was communicated to the suppliers during the supplier meetings. We also conducted one-to-one
meetings with our core suppliers to review their waste KPIs.
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• Knowledge of impact: Some of our apparel suppliers have initiated the recycling of pre-consumer
cutting waste back into the spinning process. In 2023, we completed a Life Cycle Assessment to compare
virgin cotton fabric with 75/25 blend of virgin and recycled cotton from cotton waste. The details of this
LCA study are provided in the Product section. In 2023, we mapped a waste governance for our top three
sourcing countries, summarised their waste policy landscape and identified key stakeholders.
• Internal action: In last three years i.e., starting in 2021 we focused on better data collection on waste
from supplier’s facilities, and we observed that factories have started reporting comprehensive data on
waste.
• Collaboration and partnership: In 2022, we participated in a project named Closed Loop 2 Balance
(CL2B) in Vietnam, for which the final report was published in 2023. The Global Fashion Agenda
and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) launched The Circular
Fashion Partnership: a cross-sectoral initiative to support the development of effective circular fashion
systems in textile, garment and footwear manufacturing regions, by capturing and recycling post-
industrial fashion waste. This project is currently active in Bangladesh and Cambodia and is to
be launched in Vietnam in 2024. We have had several internal discussions and communication with GFA
and GIZ about this project in Vietnam. We will scale up our textile recycling innovation, RE:FIBRE,
replacing recycled polyester with RE:FIBRE technology in all PUMA football Club and Federation replica
jerseys from 2024 onwards. We also showed that we can successfully turn an experimental version of
our classic SUEDE sneaker into compost under certain tailor-made industrial conditions, as we
published the results of our two year-long RE:SUEDE experiment.
WASTE GOVERNANCE
In 2023, we conducted a waste governance mapping process for our top three sourcing countries, Vietnam,
China and Bangladesh. We looked at the waste policy landscape and identified key stakeholders. Challenges
and opportunities in waste management were also identified for each region. We found that the waste
regulations are evolving with stringent requirements progressively. We also found that interesting projects
are being undertaken in these countries on waste tracking, waste recycling/circularity etc.
Vietnam - Waste regulation in Vietnam has been evolving since 2005, with stringent requirements being
added progressively. Vietnam committed to address marine plastic waste, with a goal of eliminating plastic
waste from both land and ocean-based sources by 2030. In addition, Vietnam has legal requirements for
waste management, which includes the management of domestic solid waste, hazardous waste, and
normal industrial solid waste. Specifically, enterprises are obliged to adopt resource- and energy-efficient
solutions, use environmentally-friendly raw materials, fuels, and materials, apply cleaner production
technologies and programmes, and implement measures to minimize waste generation (Environmental
Protection Law, Chapter VI, Section 2, Article 72).
Limited waste segregation at source, inadequate infrastructure for recycling, a lack of adequate data,
access to financing, a lack of public awareness, and a lack of market for recyclables were identified as key
challenges for waste management in Vietnam.
The Global Fashion Agenda and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) have
launched The Circular Fashion Partnership: a cross-sectoral initiative to support the development of
effective circular fashion systems in textile, garment and footwear manufacturing regions, by capturing and
recycling post-industrial fashion waste. This project will be launched in Vietnam in 2024. Through this
project, we see opportunities to address the current challenges in collaboration with other brands,
manufacturers, collectors, sorters and textile recyclers to segregate, digitally trace and recycle textile waste
into the highest possible value output, ultimately being new products.
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China introduced a regulation to promote the circular economy back in 2004. The country has a specific
regulation to ban the import of waste, which involves penalties for violations such as the illegal dumping of
waste. China also has a policy on textile waste recycling, which aims to achieve a 25% recycling rate for
textiles waste by 2025 and 30% by 2030. It has also set specific targets to produce recycled fibres derived
from 2 million tons of waste textiles by 2025 and 3 million tons by 2030. China provides fiscal incentives for
suppliers under the Environmental Protection Tax Law in which tax on hazardous waste is determined
based on the generation quantity and hence provides an opportunity for suppliers to save costs by adopting
the 3R Principles (Reduce, Reuse Recycle). We see opportunities to engage with key local stakeholders to
improve factories waste management.
Bangladesh introduced specific regulation on the circular economy in 2022. The country has a goal to
achieve recycling of plastic waste by 80% by 2030, cut single-use of plastic by 90% by 2026, reduce
generation of plastic waste by 30% by 2030 and reduce virgin material consumption by 50% by 2030.
PUMA suppliers' have developed cotton pre-consumer textile waste recycling. We increased the use of
recycled cotton from 3.6% of total cotton volume in 2022 to 8.6% in 2023.
The Circular Fashion Partnership has been active in Bangladesh since 2021. Key partners in this project are
actively engaging with the Bangladeshi government to formalize the informal waste management sector.
This includes introducing incentives and tax deductions to incentivize manufacturers to embrace recycling
practices and establishing a comprehensive national policy for the sustainable management of post-
production fashion waste. Through this policy advocacy work, we see opportunities to further increase the
use of recycled cotton in future.
↗ CASE STUDY
Zero waste to landfill
Adhering to the three principles of "Reduction, Recycling, Detoxification", TST Group, is steadily
moving towards the target of "Zero Landfill". TST has two facilities supplying to PUMA, one in China
and the other one in Cambodia. TST has implemented processes for waste reduction such as energy
recovery from sludge through Chip Mong INSEE Cement Corporation in Cambodia, using coal ash
from boiler upcycling to produce bricks in Cambodia, reuse of fabric waste as mop and sending
chemical drums back to chemical suppliers for refilling in both the China and Cambodia facilities.
Through these initiatives along with strict classification and storage of waste, as well as cooperation
with qualified third-party waste treatment companies, TST Group has achieved a 99% waste diversion
rate of a total amount of 7,398 tons production waste generated annually from landfill.
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↗ T.43 E-KPIS – WASTE
1-6
Waste (t)
2023
2022
2021
2020
2019
2018
2017
Change
2022/2023
Change
2020/2023
Total waste from own operations
5,595
4,991
5,215
3,949*
3,644*
4,877
5,293
12%
42%
Recycled waste
3,598
3,007
2,220
1,436*
1,603*
2,282
3,419
20%
151%
Share of recycled waste
64%
60%
43%
36%
44%
47%
65%
78%
Total waste from PUMA
production (core Tier 1 and 2)
38,594
53,667
42,495
29,466
24,205
16,682 31,824
-28%
31%
Share of production waste to
landfill (core Tier 1 and 2)
4.6%
9.7%
10.0%
13.5%
-66%
Total waste from PUMA
production (Tier 1)
21,861
34,642
33,806
23,498
24,205
16,682 14,686
-37%
-7%
Share of production waste to
landfills (Tier 1)
4.6%
12.9%
10.3%
9.5%
-51%
Total waste from PUMA
production (core Tier 2)
16,733
19,025
8,689
5,968
17,138
-12%
180%
Share of production waste to
landfills (core Tier 2)
4.7%
4.0%
9.1%
17.6%
-73%
*
Waste data for PUMA’s own entities in 2019 and 2020 recalculated due to underreporting in these years
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimations where no real data could be provided
3
Methodological changes over the last three years have influenced results
4
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
5
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
6
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Similar to water, even though we do not have any goal for absolute reduction in waste generation for our
core suppliers, we continue to track them. It is also observed that only 0.5% of waste (material waste but
also other factory wastes like boiler ash, sludge from wastewater treatment plants etc.) end up in landfills
for apparel suppliers and 6.8% for footwear suppliers.
We can see that there has been a 7% decrease in production waste for Tier 1 suppliers and 180% increase
for Tier 2 suppliers from 2020. The high percentage increase in Tier 2 suppliers is mainly due to the
improvement in waste data captured by the suppliers. Certain wastes such as residual ash from coal and
biomass boilers that were not captured by the Tier 2 suppliers before are now being included. At the same
time, the production volume has increased by 12% for textiles and 171% for synthetic leather. 76.3% of the
production waste are reused or recycled, 18.8% are incinerated and 4.8% are sent to landfill.
Regarding production waste sent to landfill, both core Tier 1 and Tier 2 suppliers have succeeded in reducing
their landfill percentage compared to 2020 baseline. In 2023, Tier 1 and Tier 2 suppliers have achieved a
reduction of 51% and 73% reduction respectively from the baseline and thus exceeded the PUMA goal of 50%
reduction by 2025. This was achieved due to better waste management practices adopted by the suppliers
and more accurate tracking and reporting of waste data.
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PRODUCTS
TARGET DESCRIPTION:
• 90% of PUMA Apparel and Accessories products contain >50% recycled or certified material
• 90% of our Footwear contains at least one component made of recycled or certified material
• Increase use of recycled polyester (Apparel and Accessories) to 75% by 2025
Relates to United Nations Sustainable Development Goal 12
KPIs:
• Percentage of Apparel and Accessories with 50% recycled or certified material
• Percentage of Footwear with at least one recycled or certified component
• Percentage of recycled polyester used in Apparel and Accessories
The PUMA Environmental Profit and Loss Account (EP&L) attributes more than 50% of our environmental
impact to material and raw material production. Against this background, we have decided to prioritize the
large-scale use of certified or recycled raw materials. In our 10FOR25 strategy, we have set 100% targets for
the raw materials of cotton, polyester, leather, and cardboard.
In addition to measuring the use of recycled or certified materials, we also determine the percentage of all
products made of such materials. As defined in our PUMA Sustainability Index, or S-Index, S-Index-
approved apparel or accessories products contain at least 50% certified or recycled materials by weight. For
footwear, we currently measure S-Index conformance by including one or more main components* made
from certified or recycled materials.
In 2021 we rolled out an e-learning toolkit on our PUMA S-Index for the PUMA family. The training allows
designers, developers, and product managers to understand which materials qualify as more sustainable,
how the PUMA S-Index is calculated, and which certifications need to be in place to externally communicate
on a product level.
In 2023, 85% of our product by volume met our S-Index definition. We are on track to meet our goals of 90%
for 2025.
*
Main component in the upper includes the visible upper and its components, linings, sockliner, and strobel as the only non-
visible component. They can be made of textile, leather, synthetic (PU) or TPU. It excludes trims such as eyelets, laces,
counters, decorations, etc. Main components in the bottom includes outsoles, midsoles, and insoles. They can be made of
Rubber, PU, TPU, EVA. It excludes trims and decorations.
PUMA Annual Report 2023
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↗ T.44 CERTIFIED OR RECYCLED PRODUCTS
Product Category
Styles 2023
Volume 2023
Target 2025
Apparel with at least 50 % certified or recycled material
77 %
87 %
90 %
Accessories with at least 50 % certified or recycled material
20 %
40 %*
90 %
Footwear with at least one certified or recycled component
89 %
93 %
90 %
Total
75 %
85 %
90 %
*
Excluding products from stichd; for further details on the reporting scope please refer to the Scope of the Report section.
In 2023 we continued to develop and design our collections and individual styles using recycled materials.
Highlights include the use of our RE:FIBRE technology in our Teamsport jerseys. The jerseys made with
RE:FIBRE are made from at least 95% of recycled textile waste and other used materials made of polyester.
We also continued our Downtown collection from Sportstyle and accessories. The different styles in
Downtown are made using 20-30% recycled cotton, while the accessories are made from at least 20%
recycled content. Another highlight includes the scaling of our Caven shoe, which is made with at least 20%
recycled materials in the upper and at least 10% recycled materials in the bottom. Our Downtown collection
exceeded 1 million pieces in 2023 and we produced 3 million Caven shoes for the Spring Summer and
Autumn Winter collections in 2023 combined.
PUMA Caven contains at least 20% recycled content in the upper and 10% recycled content in bottom of the shoe.
PUMA Annual Report 2023
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PRODUCT LIFE CYCLE ASSESSMENT
We continued the Life Cycle Assessment (LCA) studies of our product portfolios in 2023. The outcomes of an
LCA act as a quantifiable measure of our efforts towards embedding sustainability in our products by
exploring ways to make our product value chains safer, cleaner and more sustainable. It also encourages
innovation in our products and processes so that we can meet increasing social and business expectations
regarding sustainability and transparency. Sphera, a leading consulting organisation in the field of LCA,
conducted LCA studies to consider all of the elements of the life cycle, from the overall manufacturing
including supply of material and energy carriers through to the end of life, when analysing the
environmental performance of the products. The LCAs were performed as per ISO 14040 and ISO 14044
requirements. A third-party critical review panel was commissioned to peer review the work and ensure
compliance with the mentioned standards.
LCA OF TWO PRODUCTS
We completed a screening LCA study for two of our top products, the PUMA POPCAT 20 sandals, and the
PUMA Smash v2L shoes, to map the environmental footprint of these products across their entire value
chains (cradle to grave), excluding the consumer use phase. This helped us to understand the hotspots in
the value chain (the maximum impacts in terms of climate, energy and water), and to identify sustainable
options in various phases to improve the product’s environmental footprint.
The results of the analysis can be summarised as follows:
↗ G.30 GLOBAL WARMING POTENTIAL
49.07%
69.61%
40.37%
21.38%
0.29%
0.23%
9.94%
8.78%
Sandals POPCAT20
Shoes SMASH V2L
Manufacturing
Raw Material
End of Life
Use Phase
Shoe PUMA SMASH V2 L, gross
weight 0.955 kg/pair
Sandal PUMA POPCAT 20, gross
weight 0.381 kg/pair
PUMA Annual Report 2023
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For the POPCAT20 sandals, the global warming potential (GWP) in kg CO2e was mainly influenced by raw
materials which include polyester fabric, chemicals etc. (49.07%), manufacturing energy (40.37%) and End of
Life (9.94%). Ethylene Vinyl Acetate (EVA) and PU Synthetic are the major contributing materials.
For the SMASHv2L shoes, the global warming potential (GWP in kg CO2e) was mainly influenced by materials
which include body material, parts and components (69.61%), manufacturing energy (21.38%), and end-of-
life (8.78%). Polyester fabric and rubber are the major contributing materials.
Footwear usually does not require extensive cleaning during its lifetime, and hence the impact of the
consumer use phase is negligible. Therefore, the GHG emissions of the use phase from both of the footwear
is not considered. However, the end-of-life phase includes reuse, recycling, incineration, and landfilling
based on European scenarios, which contributes to GWP impacts of 9.94% for the POPCAT20 sandals and
8.78% for the SMASHv2L shoes.
↗ G.31 PRODUCT ENVIRONMENTAL FOOTPRINT
1-2
1
Primary energy is the energy that is harvested directly from natural resources: coal, oil, natural gas and uranium.
2
Blue water is water that has been sourced from surface or groundwater resources and is either evaporated or incorporated
into a product.
For the POPCAT20 sandals, the total global warming potential is 1.61 kg CO2e. The total primary energy
demand is 32.36 MJ with major contributions from ethylene vinyl acetate (EVA) (60.60%) and PU Synthetic
(11.48%). The total blue water consumption is 31.02 kg with major contributions from the raw material PU
Synthetic blend (51.85%) which contains 52% recycled polyester and 48% polyurethane. The remaining
contribution comes from other materials, chemicals, electricity and fuel consumption.
For the SMASHv2L shoes, the total global warming potential is 4.61 kg CO2e. The total primary energy
demand is 90.38 MJ with major contributions from the polyester fabric (30.04%) and rubber (22.04%). The
total blue water consumption is 41.33 kg with major contributions from PU-coated leather (33.41%).
POPCAT 20 sandals have a significantly smaller (65%) carbon footprint than SMASH v2L shoes. One reason
for this is the lower net weight of POPCAT 20, which is 60% lower. Looking at the carbon footprint of
materials, in the case of POPCAT 20, 64.5% of climate impact comes from the Ethylene Vinyl Acetate (EVA)
while for Smash V2L, the majority of the impact comes from polyester and rubber, which accounts for 65.4%
of the carbon footprint of the raw material of the product. This indicates that low-carbon material such as
EVA has also contributed to the lower carbon footprint of POPCAT 20. Looking at energy consumption during
1.61
4.61
Sandals
POPCAT20
Shoes
SMASHv2L
Climate Change
[kg CO2e/product]
32.36
90.38
Sandals
POPCAT20
Shoes
SMASHv2L
31.02
41.33
Sandals
POPCAT20
Shoes
SMASHv2L
Primary Energy Demand (Net)
[MJ/product]
Blue Water Consumption
[kg/product]
PUMA Annual Report 2023
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production, POPCAT 20 consumed 52% less electricity than SMASH v2L. This can be attributed to the lower
net weight and the simplicity of the POPCAT 20 product design.
Though the SMASH v2L has a larger carbon footprint than the POPCAT 20, it is much smaller (4.61 kg CO2e)
when compared to previously conducted LCAs of footwear products in 2021 i.e. the Future Rider Play on
(9.49 kg CO2e) and Velocity Nitro (7.6 kg CO2e). Both the Future Rider Play on and Velocity Nitro have a lower
net 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
SMASH v2L is made of recycled materials such as recycled polyester, recycled PU, and recycled rubber
along with recycled packaging materials and the quantity of leather used is much lower, which explains the
lower carbon footprint when compared to the Rider Play on and Velocity Nitro.
The key takeaways from the LCA study are, to make future footwear products lighter, increase the usage of
low-impact materials such as recycled polyester or recycled PU and reduce the use of high-impact
materials such as virgin PU and virgin polyester. The supply chain for footwear products is complex and
involves multiple stages such as raw material extraction, processing, finishing, assembly, distribution and
end of life. The LCA study is used to understand the value chain environmental impacts of our products.
PUMA intends to use the outcomes of the study to raise internal awareness and improve the product’s
environmental footprint by increasing the use of more sustainable materials (recycled or biosynthetic),
improving resource efficiency, optimizing energy use, promoting renewable energy in the value chain, and
enhancing the circularity of our products.
COMPARATIVE LCA VIRGIN POLYESTER VS. PET RECYCLED POLYESTER VS. RE:FIBRE POLYESTER
PRODUCTS
In 2023, PUMA engaged Sphera, Inc. to conduct a comparative Life Cycle Assessment (LCA) of three types of
sports jerseys made from virgin polyester, PET recycled polyester and RE:FIBRE, in our Turkey supply chain.
The RE:FIBRE process uses mainly polyester material from factory offcuts, faulty goods and
used clothes. PET recycled polyester comes from PET plastic bottles.
The LCAs were performed using the “cradle to grave” approach. The objective was to quantify the
environmental impacts associated with the production of these three types of jerseys using the LCA
approach. The products studied were:
The scope of this study includes raw material sourcing and extraction, transportation of raw materials to
the manufacturing location, manufacturing of the jersey products, product distribution, product use phase
and end of life (EoL) of product and packaging.
PET recycled polyester jersey
Net weight 0.964 kg
(88% Mechanically Recycled
Polyester and 12% Virgin Polyester)
RE:FIBRE polyester jersey
Net weight 0.904 kg
(57% Chemically Recycled
Polyester, 34% Mechanically
Recycled Polyester, and 9%
Virgin Polyester)
Virgin polyester jersey
Net weight 1.316 kg
(100% Virgin Polyester)
PUMA Annual Report 2023
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The LCA study indicates that per kg, the PET recycled polyester jersey has the smallest carbon footprint
(13.19% lower as compared to virgin polyester jersey) among the three products compared in the study.
Whereas, per kg, the RE:FIBRE polyester jersey has a 7.31% lower Global Warming Potential (GWP) impact
when compared to the virgin polyester jersey. The RE:FIBRE polyester jersey has 57% chemically recycled
fibre which has a higher GWP impact as compared to mechanically recycled fibre but a lower one than virgin
recycled fibre.
The total primary energy demand also exhibits a similar trend, due to same factor as the carbon
footprint. The PET recycled polyester jersey and RE:FIBRE Polyester Jersey are 16.15% and 12.13% lower
respectively per kg than the virgin polyester jersey.
The LCA study also indicates that, the water consumption per kg of PET recycled polyester jersey and
RE:FIBRE polyester jersey is 1.10% and 2.82% higher than per kg value of the virgin polyester jersey.
Although textile-to-textile technology currently has a larger environmental footprint than mechanical
recycling, through the RE:FIBRE programme, PUMA is keen to address the challenge of textile waste via a
long-term solution for recycling. The technology also looks to diversify the fashion industry’s main source of
recycled polyester in garments to make it less reliant on clear plastic bottles. We also believe that this
technology has room to become more energy efficient in future.
Managing waste has become a necessity, which is why PUMA is ramping up its investment into resource-
efficient manufacturing processes in a move to reduce textile waste. Textile waste build-up in landfills is an
environmental risk. Rethinking the way we produce and moving towards a more circular business model is
one of the main priorities of our Sustainability Strategy.
To help make the technical process of RE:FIBRE more digestible for the everyday consumer who wants to
know more, PUMA has created a RE:FIBRE process explainer video, which can be accessed here.
The four-step process of RE:FIBRE:
• Collect and Sort: collecting and sorting textile waste and other previously wasteful materials.
• Shred and Mix: shredding and mixing the collected materials
• Dissolve, Filter and Polymerize: Dissolving the shredded polyester and removing dyes through a
chemical recycling process.
• Melt, Spin, Knit and Sew: The melting makes the newly produced polymers ready to be spun and sewn
into shape to create good as new RE:FIBRE fabric which can be recycled again and again.
PUMA Annual Report 2023
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↗ G.32 ENVIRONMENTAL FOOTPRINT OF POLYESTER JERSEYS
1-2
1
Primary energy is the energy that is harvested directly from natural resources: coal, oil, natural gas and uranium.
2
Blue water is water that has been sourced from surface or groundwater resources and is either evaporated or incorporated
into a product.
COMPARATIVE LCA OF 3 TYPES OF COTTON FABRIC
PUMA engaged Sphera to conduct a comparative Life Cycle Assessment (LCA) of one kilogramm of 100%
virgin piece dyed cotton fabric, 75/25 virgin/undyed recycled piece dyed cotton fabric and 75/25
virgin/coloured recycled piece dyed cotton fabric.
Piece dyed fabric is fabric made of grey yarns which are dyed, and is different to yarn dyed fabric: a fabric
that is knitted using dyed yarn.
LCAs are performed using the “cradle to gate” approach. Since this is the “cradle to gate” approach,
consumer use phase and fabric end-of-life impacts for the cotton fibre products were not considered in this
LCA study.
The main objective of the study is to quantify the environmental impacts associated with the production of
these fabrics across various life cycle stages of the manufacturing process, including the supply of raw
materials and energy carriers. The primary data considered for the study was collected from three PUMA
suppliers stretched across two regions, Bangladesh (two factories) and Turkey (one factory). The data
collected includes data for all the production processes such as collection and pre-processing, yarn
spinning, knitting and inspection, pre-treatment, dyeing, compacting and drying.
The LCA study indicates that for one kg of 75/25 virgin/undyed recycled piece dyed cotton fabric, the carbon
footprint is 5.83% smaller compared to the 100% virgin piece dyed cotton fabric. This change was mainly
influenced by the inclusion of 25% undyed recycled cotton material. For 1 kg of 75/25 virgin/coloured
recycled piece dyed cotton fabric, the carbon footprint was smaller by 13% when compared to the 100%
virgin piece dyed cotton fabric. This change was mainly influenced by the inclusion of 25% coloured recycled
piece dyed cotton fabric. When comparing these three fabrics, the environmental impacts of 75/25
virgin/coloured recycled piece dyed cotton fabric were found to be the lowest. This is due to the usage of
25% recycled yarn which is recovered from a coloured fabric and hence requires fewer chemicals and less
energy during the dyeing process.
22.46
19.49
20.81
Climate Change
[kg CO2e/kg of product]
606.31
508.39
532.79
964.28
974.88
991.49
Primary Energy Demand
[MJ/ kg of product]
Blue Water Consumption
[kg/kg of product]
GWP
PED
BWC
PET Recycled Jersey
Virgin Polyster Jersey
RE: FIBRE Polyester Jersey
PUMA Annual Report 2023
↗ Sustainability
172
↗ G.33 ENVIRONMENTAL FOOTPRINT OF COTTON FABRICS
Additionally, it was found that the most significant carbon footprint impact is related to the conventional
dyeing of fabric followed by the impacts of cotton cultivation and yarn spinning. Primary energy demand is
largely driven by the cultivation of cotton, followed by conventional dyeing of fabric. Water consumption is
largely driven by cotton cultivation followed by conventional dyeing, compacting and drying processes.
In the study, we also evaluated the environmental impacts of different types of dyeing technologies such as
conventional and Pad-Steam dyeing processes for the three types of fabrics. The Pad-Steam process is a
textile finishing technique used to apply chemicals or dyes to fabric. It is a combination of two steps:
padding and steaming. This process is employed to achieve uniform coloration, improved fabric properties,
and enhanced performance characteristics. This study was conducted at a factory located in Turkey that
uses both technologies. Conventional dyeing for knitted products is typically a batch process in which the
fabric is loaded along with water, chemical and dyestuffs and processed for a fixed number of hours based
on the type of fabric. Whereas, Pad-Steam dyeing is a continuous dyeing process, in which the fabric is dyed
by immersing the fabric in the dye solution for a few seconds, immediately pressed through a roller and
then steamed. Pad-Steam dyeing is more resource-efficient as compared to conventional dyeing. This was
further corroborated by our LCA study. Pad-Steam dyeing was found to have a smaller environmental
footprint than conventional dyeing. It was observed that the Pad-Steam dyeing process has 81.9% less
energy and 80.5% less water consumption as compared to the conventional dyeing process.
It was found that Pad-Steam dyeing for 100% virgin piece dyed cotton fabric has a 34.8% smaller carbon
footprint as compared to conventional dyeing. The corresponding figure for 75/25 virgin/undyed recycled
piece dyed cotton fabric was 36.9% and 25.02% for 75/25 virgin/coloured recycled piece dyed cotton fabric.
Similar trends were also observed for primary energy demand and water consumption.
The LCA study clearly indicates that the inclusion of recycled cotton fabrics has a smaller environmental
footprint and hence is to be promoted for future product development. However, there are currently
technological limitations surrounding increasing recycled cotton to more than 25% in a cotton fabric mix.
This calls for a focus on future innovation in this area. Furthermore, our suppliers could adopt better dyeing
technologies such as the Pad-Steam dyeing process which has a smaller environmental footprint.
8.67
8.16
7.53
Climate Change
[kg CO2e/kg of Fabric]
190.81
170.42
160.20
1,216.26
942.48
912.84
Primary Energy Demand
[MJ/kg of Fabric]
Blue Water Consumption
[kg/kg of Fabric]
GWP
PED
BWC
75/25 Virgin / Undyed Recycled
Piece Dyed Cotton Fabric
Virgin Piece Dyed
Cotton Fabric
75/25 Virgin / Coloured Recycled
Piece Dyed Cotton Fabric
PUMA Annual Report 2023
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MATERIAL ORIGIN
Mapping and assessing risk and impact practices in the lower tiers of the supply chain helps us to identify
opportunities for improvement.
COTTON
In 2023, we sourced approximately 34,000 tons of cotton. To reach our 100% targets for certified or recycled
cotton, we require our suppliers to only source cotton from farms that are licensed or certified as having
good farming and human rights standards, or recycled cotton. 96% of the cotton used in PUMA products
comes from the USA, Brazil, Australia, India, Bangladesh, Vietnam, Indonesia and Turkey.
LEATHER
In 2023, we sourced approximately 3,500 tons of bovine leather. We are working on improving the traceability
of the leather we use by recording the traceability score of our leather manufacturers certified by the
Leather Working Group. The leather used in PUMA footwear mainly comes from the USA (61%), Argentina
(27%), Australia (6%) and Brazil (5%). We also monitor our LWG (Leather Working Group) medal-rated
tanneries' traceability performance. Most suede tanneries work with agents and intermediaries besides
direct tanneries to guarantee a stable sourcing supply. Suede is a byproduct of the full-grain leather
business. This creates a challenge to full traceability. This explains why our suede leather LWG tanneries
have a worse traceability performance than full-grain LWG tanneries. We aim to increase all of our LWG
medal-rated tanneries’ traceability performance over time.
MATERIAL CONSUMPTION DATA
↗ G.34 CERTIFIED OR RECYCLED MATERIALS DEVELOPMENT
1-2
1
Cotton and polyester including apparel and accessories material (including trims)
2
Proliferation for 2023 based on actual data in January - September 2023 and previous data October - December 2022
As in previous years, a significant percentage of our materials can be attributed to cotton either from the
Better Cotton Initiative, recycled or organic cotton, to polyester that is either bluesign® or OEKO-TEX®-
certified, recycled or bio-based polyester, and to leather sourced from Leather Working Group (LWG)-
certified tanneries or recycled leather. In addition, we only use down feathers certified by the Responsible
Down Standard and 84% of our man-made cellulosic (MMCF) is made by green shirt-rated MMCF suppliers
with a proven track record on sustainability based on the Hot Button report from the NGO Canopy.
0
10
20
30
40
50
60
70
80
90
100
2015
2016
2017
2018
2019
2020
2021
2022
2023
Year
Cotton
Polyester
Cardboard
Leather
PUMA Annual Report 2023
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174
Therefore, more than 87% of our apparel, 40% of our accessories and 93% of our footwear products are
already classified in line with the definition in our PUMA Sustainability Index.
Coverage and calculations are more complex for footwear because all of our shoes are made from several
components. The main materials we use are polyester, polyurethane, rubber, leather and nylon. In line with
our earlier targets, we have achieved 99.7% coverage of leather sourced from LWG-certified tanneries.
In 2023, 99.2% of the cotton used came from certified or recycled sources, as did 85% of our polyester.
We hardly used wool in 2023 (6,566 kg). Nevertheless, we see an increased number of factories certified in
line with the Responsible Wool Standard (RWS). We organised a RWS training for our in-scope suppliers in
June 2023, and the positive results were shown by the six RWS-certified factories in our supply chain. We
aim to reach 100% certified wool in 2025.
↗ T.45 DEVELOPMENT OF CERTIFIED OR RECYCLED MATERIAL USAGE*
Cotton
Apparel
Accessories
Footwear
Total
Better Cotton
90.6 %
23.2 %
8.0 %
90.3 %
Recycled
8.6 %
16.7 %
1.6 %
8.6 %
Organic
0.3 %
0.3 %
0.3 %
Conventional
0.6 %
59.7 %
90.5 %
0.9 %
Polyester
Apparel
Accessories
Footwear
Total
Recycled
68.4 %
29.3 %
56.5 %
61.8 %
Oekotex® / bluesign®
30.3 %
54.5 %
8.1 %
23.3 %
Sorona®
0.1 %
0.2 %
0.1 %
Conventional
1.2 %
16.2 %
35.2 %
14.8 %
Manmade cellulosics
Apparel
Accessories
Footwear
Total
Green Shirt-rated fiber producers**
82.4 %
72.7 %
Ecovero®
12.7 %
0.7 %
11.3 %
Conventional
4.9 %
100.0 %
99.3 %
16.0 %
Polyamide (nylon)
Apparel
Accessories
Footwear
Total
Recycled
26.4 %
60.2 %
2.0 %
19.3 %
Oekotex® / bluesign®
70.8 %
38.2 %
13.9 %
46.9 %
Conventional
2.8 %
1.6 %
84.2 %
33.8 %
PUMA Annual Report 2023
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Leather
Apparel
Accessories
Footwear
Total
LWG medal-rated tannery
99.96 %
99.7 %
Recycled
0.04 %
0.04 %
Conventional
100.0 %
0.22 %
Rubber
Apparel
Accessories
Footwear
Total
Synthetic
34.7 %
52.6 %
93.9 %
93.0 %
Natural
65.3 %
32.5 %
1.2 %
1.9 %
Recycled
15.0 %
4.9 %
5.1 %
PU
Apparel
Accessories
Footwear
Total
Recycled
2.4 %
1.5 %
2.4 %
2.4 %
Oekotex® / bluesign®
93.4 %
0.8 %
Water-based
0.02 %
1.1 %
1.0 %
Bio-based
0.4 %
0.4 %
Conventional
4.3 %
98.48 %
96.1 %
95.4 %
Down
Apparel
Accessories
Footwear
Total
RDS certified
100 %
100 %
*
Figures include trims and exclude licensee production as well as production from stichd. For further details on the reporting
scope, please refer to the Scope of the Report section.
** Green Shirt-rated fiber producers, as set by the annual Canopy Hot Button report, encourage existing fiber suppliers to
commit to CanopyStyle and a Canopy Audit.
↗ T.46 CERTIFIED OR RECYCLED MATERIALS BY PRODUCT DIVISION*
2023
2025 target
Apparel
Certified or recycled cotton
99.4 %
100 %
Certified or recycled polyester
98.8 %
100 %
Certified or recycled MMCF
95.1 %
100 %
Certified or recycled PU
95.7 %
NA
Accessories
Certified or recycled cotton
40.3 %
100 %
Certified or recycled polyester
83.8 %
100 %
Certified or recycled MMCF
0.0 %
100 %
Certified or recycled leather
0.0 %
100 %
Certified or recycled PU
1.5 %
NA
PUMA Annual Report 2023
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Footwear
Certified or recycled cotton
9.5 %
100 %
Certified or recycled polyester
64.8 %
100 %
Certified or recycled MMCF
0.7 %
100 %
Certified or recycled leather
100 %
100 %
Certified or recycled PU
3.9 %
NA
L&P paper/cardboard products**
Recycled and/or FSC-certified
99.4 %
100 %
*
Figures include trims and exclude licensee production as well as production from stichd. For further details on the reporting
scope, please refer to the Scope of the Report section.
** Including outer cardboard boxes, which were excluded in previous years.
In 2023, the total number of GRS/RCS certified factories has increased to 159 from 145 in 2022. This indicates
a higher uptake of recycled material due to the launch of more sustainable products in our product mix.
In 2023, we saw an increased number of factories certified by the Responsible Wool Standard.
↗ T.47 NUMBER OF FACTORIES WITH CERTIFICATION
1
Number of factories certified
GRS/RCS
GOTS
OCS
RDS
RWS
LWG
Apparel & Accessories Tier 1
and Tier 2
128
30
23
6
6
NA
Footwear Tier 1 and Tier 2
31
0
1
NA
1
NA
32 Gold
Leather Tanneries
4 Silver
1
GRS: Global Recycling Standard, RCS: Recycled Claim Standard, OCS: Organic Content Standard; GOTS: Global Organic
Content Standard; RDS: Responsible Down Standard, RWS: Responsible Wool Standard, LWG: Leather Working Group.
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BIODIVERSITY
TARGET DESCRIPTION:
• Support the industry in setting a science-based target for biodiversity
• 100% cotton, leather and down procured from certified sources (shared target)
• Zero use of exotic skins and hides
Relates to United Nations Sustainable Development Goals 14 and 15
The world’s biodiversity experts agreed to conserve 30% of the world’s land and oceans by 2030. Biodiversity
is also inextricably linked to climate change.
Consequently, we have dedicated one of our 10FOR25 sustainability target areas to biodiversity. Most of
PUMA’s biodiversity impact is based in the supply chain, particularly to the usage of agricultural raw
materials. However, we also include biodiversity checks in our annual environmental data collection for our
own offices, stores and warehouses around the globe.
BIODIVERSITY POLICY
As part of the Fashion Pact, we are committed to supporting the development of science-based targets
related to biodiversity.
In 2021 we published the PUMA biodiversity policy and animal welfare policy- signed off by our Board of
Management- to create a framework for our approach to biodiversity and animal welfare. These policies are
available for download on our website.
This includes our commitments:
• as a supporting partner of the CanopyStyle initiative, to only source our viscose from Green Shirt-rated
suppliers in order to protect endangered forests and species.
• to source the leather used in PUMA products solely from manufacturers who implement industry best
practice standards of environmental management and traceability, such as the leather working group.
• to source all our paper and paper-based packaging from recycled sources and/or Forest Stewardship
Council-certified sources. PUMA acted as a partner of Canopy’s Pack4Good initiative to collectively
reduce any risk of sourcing from ancient and endangered forests by 2022 and promoting next-generation
solutions.
At PUMA we care for the welfare of animals. We do not use animal products which originate from animals
that have been treated inhumanely. Therefore, we aim to implement high welfare and traceability standards
and have published an Animal Welfare Policy. PUMA consults animal protection organisations on a regular
basis to review our policies and actions. As a sign of our commitment to animal welfare, we joined the Fur
Free Retailer programme and phased out the use of kangaroo leather in 2023.
PUMA Annual Report 2023
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BIODIVERSITY IN OUR OWN OPERATION
We checked via our annual environmental reporting campaign and confirmed that none of our PUMA sites
are located within a protected area. We have identified one site in South Africa, as being located next to a
protected area, which holds a rare species of the plant, Renosterveld Finbos. This site is an office location,
and is fenced off from the protected area, so any negative impact on these plants can be ruled out.
There are green roofs which offer additional habitats for insects as well as wildflower meadows and
beehives on our headquarters in Herzogenaurach, as well as on our (outsourced) German central logistics
centre.
BIODIVERSITY IN OUR SUPPLY CHAIN
Many species, including plants, animals, bacteria and fungi are being threatened with extinction due to
human activities such as deforestation, putting Earth’s biodiversity at risk. Apparel supply chains are
directly linked to soil degradation, conversion of natural ecosystems and waterway pollution. Two-thirds of
apparel shoppers say that limiting the impact on climate change is now more important to them now than
before COVID-19 (McKinsey: Biodiversity – The next frontier in sustainable fashion).
PUMA is a signatory to the Fashion Pact, a global initiative of companies in the fashion and textile industry
(ready-to-wear, sport, lifestyle and luxury), all committed to a common core of key environmental goals in
three areas mitigating global warming, restoring biodiversity and protecting the oceans.
Biodiversity loss and climate change are interdependent and mutually reinforcing. For example, protecting
forests could help reduce greenhouse gas emissions. In turn, the rise of global temperatures increases the
risk of species becoming extinct. In 2019 PUMA published its science-based emissions target (SBT) with the
SBT Coalition and joined the Fashion Pact. In 2023 an updated and 1.5 degree aligned science-based
emissions target was approved for Scope 1 and 2 by SBT Coalition.
Please see the Climate section of this report to find out about our climate action and progress.
↗ T.48 SUSTAINABLY SOURCED NATURAL MATERIALS
Sub-targets
2023*
2022*
2021
Target 2025
Science Based Target (SBT)
Fund Biodiversity
Landscape Report
Fund Biodiversity
Landscape Report
Joined Fashion
Pact activities on
biodiversity
SBT set
Cotton (BCI** and/or recycled)
99.2%
99.9%
99%
100%
Leather (LWG-certified tanneries)
99.7%
100%
99.9%
100%
Down (RDS-certified)
100%
100%
100%
100%
Sustainably sourced viscose / MMCF
84%
97%
38%
100%
Cardboard and paper (FSC and/or recycled)
99.4%***
99.4%***
99% (product
packaging supply
chain)
100%
*
Including trims and excluding licensee production
** Better Cotton Initiative (BCI) principle: Biodiversity and Land Use is one of the seven Better Cotton Principles and Criteria.
Management practices address identifying and mapping biodiversity resources, identifying and restoring degraded areas,
enhancing populations of beneficial insects, ensuring crop rotation and protecting riparian areas.
*** Including outer cardboard
Most of the negative impact on biodiversity comes from three stages in the value chain – raw material
production, material preparation and processing, and end of life.
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To mitigate the risk of biodiversity loss due to the production process, we address environmental pollution
risk through our targets and supplier programmes related to climate, chemicals, water and air.
In 2021 we developed roadmaps for water and waste, which can be found in the Water and Air, and
Circularity sections of this report. In 2022 we developed a biodiversity roadmap using the Fashion Pact
Biodiversity Strategy Tool Navigator that is in line with SBTN recommendations.
At cotton farming level, Regenerative Agriculture practices aim to reduce the impact of production on soils
and promotes soil health by restoring the soil’s organic carbon. Through our partnership with Better Cotton,
we support regenerative cotton farming practices. BCI farmers have to follow these two principles, among
others:
• Care for the health of soil: This principle requires farmers to develop a Soil Management Plan. The plan
should include practices that contribute to maintaining and enhancing soil structure and soil fertility,
and continuously improving nutrient cycling.
• Enhance biodiversity and use land responsibly: This principle requires Better Cotton farmers to adopt a
Biodiversity Management Plan to conserve biodiversity on and around their farm. This plan includes
regenerative farming practices such as ensuring crop rotation, which helps with soil regeneration.
BIODIVERSITY ROADMAP
Scope: Cotton, Leather, Rubber, Paper, MMCF, Synthetics, Wool
Below are some key focus areas for the coming years. Some measures were implemented in 2022 and 2023
and are covered in this report.
• Raise awareness: We see the need to raise awareness internally and will be developing an e-learning on
biodiversity for our staff. We also see the need to increase the awareness of our consumers. We aim to
maintain transparency to keep a strong relationship with stakeholders while providing information about
biodiversity actions. In 2022, PUMA sponsored the Biodiversity Landscape Analysis Report as an
opportunity to foster collaboration and knowledge-sharing in biodiversity. Together with Textile
Exchange, Conservation International and the Fashion Pact, the Biodiversity Landscape Analysis Report
aims to provide a common reference point on the topic of biodiversity in the textile industry, and to offer
concrete pathways for brands and retailers to deepen their engagement. The report, which was
published in 2023 intends to help companies of all sizes and maturities to begin or continue their
biodiversity journey.
• Knowledge of impact: We will explore traceability tools and conduct impact assessments, starting with
leather and rubber. We collect material and packaging consumption data on an annual basis for the
country of origin. For example, only a small percentage of the total leather used in PUMA products
originates from South America, where deforestation is occurring at a rapid pace. Our EP&L identifies
how the environmental impact is distributed along our value chain, for example, land use change per
country, material type and tier level. The potential financial impact on land use was estimated to be
approximately € 100 million in our 2023 EP&L.
• Internal action: We will define a KPI to be included in a supplier scorecard (environmental and chemical)
and set biodiversity targets as well as traceability targets, starting with leather. We set goals to reach
100% cotton, leather, viscose, paper packaging and down-procured from certified sources in 2025. Both
cotton farming and cattle ranching require extensive land use and are known to reduce biodiversity,
99.2% of cotton used in PUMA products is BCI or recycled cotton. 99.7% of the leather used in our foot-
wear is sourced from Leather Working Group (LWG) medal-rated tanneries. Leather traceability is a first
step towards reducing deforestation. We monitor our LWG medal-rated tanneries' traceability
performance and have joined the LWG Traceability working group. We partner with the NGO, Canopy, a
Canadian non-profit organisation with the mission to protect the world’s forests, species and climate,
and to help advance indigenous communities’ rights. We aim to ensure that our sourcing of man-made
cellulosic materials (such as viscose) as well as paper and cardboard, does not contribute to de-
forestation. 99.4% of our paper packaging is either recycled and/or FSC-certified. We commit to sourcing
PUMA Annual Report 2023
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180
100% of our viscose from suppliers committed to reducing the risk of sourcing from ancient and
endangered forests. In 2023, 84% of viscose was sourced from Green Shirt-rated suppliers. We hardly
used wool (6,566 kg in 2023), but we have initiated Responsible Wool Standards certification. We aim to
reach 100% certified responsible wool by 2025.
• Collaboration and partnership: PUMA joined the Fashion Pact, a global coalition of companies in the
fashion and textile industry that is committed to stopping global warming, restoring biodiversity and
protecting the oceans. PUMA joined the Fashion Charter, and committed to sourcing 100% of priority
materials as preferred materials by 2030 (material for which no natural ecosystems are converted or
deforested). In 2021 we engaged with Canopy, who helped us develop our policy on forest protection. We
also engaged with Canopy‘s initiatives: CanopyStyle and Pack4good. Through these initiatives, we started
investigating the next generation of raw materials with a focus on biobased materials, such as wheat
straw, as a partial substitute for paper in our shopping paper bags.
BIODIVERSITY RISK ASSESSMENT
In 2023, we conducted a biodiversity risk assessment for our key raw materials such as cotton, polyester
and leather. For cotton and polyester, we used the Materials Impact Explorer tool provided by Textile
Exchange. For leather, we used the Biodiversity Risk and Impact Dashboard of Fashion Pact. PUMA is
currently taking steps to mitigate biodiversity risks and address environmental pollution risks through our
targets and supplier programmes related to the climate, chemicals, water and air.
We evaluated the environmental risk of rubber using the EiQ platform from Elevate. EiQ is a data-driven
supply chain Environmental, Social, and Governance (ESG) due diligence platform used by businesses to
enhance ESG risk management. The environmental risk encompasses water use, non-GHG air pollutants,
terrestrial ecosystem use, soil pollutants, solid waste and water pollutants. We also mapped our sourcing of
these materials by country.
For cotton and polyester, we mapped our material consumption by country of origin using the Materials
Impact Explorer tool to evaluate the potential impact on biodiversity in terms of changes in the state of
nature (quality or quantity) which may result in changes to the capacity of nature to sustain social and
economic functions. We also evaluated the risk of dependency in terms of environmental assets and
ecosystem services that an organisation relies on to function. The dependency risk rating for recycled cotton
and recycled polyester is not applicable as per the tool used. The outcome of the assessment is
summarised below. The risk profile of a few countries from which PUMA is sourcing cotton and polyester
is not available in the tool. However, such countries represent less than 5% of our sourcing volume for
cotton and 13% for polyester.
As a next step, we will look at a collaborative approach and join programmes with third-party initiatives to
understand governance challenges.
Cotton: In 2023, we sourced 63% of cotton from the USA, followed by Brazil (15%) and Australia (8%). These
three countries have high a risk rating for potential impact. 4% of cotton is sourced from India which a very
high-risk country.
In terms of dependency risk, the USA, Brazil and Australia are categorised as high-risk countries, whereas
India is categorised as a very high-risk country.
We have required our suppliers to source only cotton grown in farms that are licensed as having good
farming and human rights standards or recycled cotton from factories that are either Global Recycled
Standard (GRS) or Recycled Claim Standard (RCS) certified in 2025.
PUMA is taking steps to mitigate the biodiversity risks associated with the cotton sourcing. These include
the adoption of BCI cotton, increased usage of recycled cotton, focusing on innovation to increase the share
of recycled cotton in our products, conducting Life Cycle Assessment of products and materials to evaluate
PUMA Annual Report 2023
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181
environmental impact in different lifecycle stages and engaging with textile exchange to stay informed on
industry best practices.
We collect material consumption data on an annual basis along with the country of origin and require our
suppliers to keep all the supportive documentation at disposal. We have also established an on-going due
diligence programme with our partner laboratory in Germany where we regularly test samples of cotton
finished garments before shipment. This further strengthens traceability and control across our supply
chain, from the raw material to the finished products.
Through our partnership with Better Cotton, we support regenerative cotton farming practices. Better
Cotton Soil Health principles require farmers to develop a Soil Management Plan. The plan should include
practices that contribute to maintaining and enhancing soil structure and soil fertility, and continuously
improving nutrient cycling.
Better Cotton Biodiversity principles require Better Cotton farmers to adopt a Biodiversity Management
Plan to conserve biodiversity on and around their farms. This Plan includes regenerative farming practices
such as ensuring crop rotation, which helps with soil regeneration. Biodiversity loss and climate change are
interdependent and mutually reinforcing. Protecting forests, for example, could help reduce greenhouse gas
emissions.
Through our partnership with Better Cotton, we also support cotton farmer producers for climate-friendly
practices, Better Cotton has set the goal of reducing greenhouse gas emissions by 50% per ton of Better
Cotton lint produced by the end of the decade.
In 2023, the share of BCI cotton was 90% and recycled cotton made up 8.6% of all cotton sourced by PUMA.
Polyester: We sourced 79% of our polyester from China in 2023, followed by Taiwan 9.2% and Vietnam
7.4%. We sourced both virgin polyester and recycled polyester from China, whereas we sourced only
recycled polyester from Taiwan and Vietnam. China has a very high-risk rating in terms of the potential
impact of virgin polyester. Recycled polyester is rated as medium risk irrespective of country of origin by the
Textile Exchange tool.
In terms of risk related to dependency, China, Turkey, South Korea, Japan and Indonesia are rated as very
high-risk countries for virgin polyester whereas the USA and Germany are considered as high-risk
countries. However, apart from China, we source a negligible volume (around 1%) from high, and very high-
risk countries.
We have required our suppliers to source only polyester-certified to Bluesign/ Oekotex, or recycled polyester
from factories that are either Global Recycled Standard (GRS) or Recycled Claim Standard (RCS) certified in
2025. PUMA has joined the Textile Exchange polyester challenge, since our 2025 goal of 75% recycled
polyester is aligned with this challenge. While most of our recycled polyester to date has been made
from PET bottles, PUMA launched the innovative RE:FIBRE programme, and can repurpose collected textile
waste and other used materials to create new textiles. We engaged our core fabric manufacturing plants in
energy efficiency programmes and are helping them to transition to 25% renewable energy processing in
2025. We monitor and report chemical discharges, and work to eliminate pollutant chemicals.
In 2023, we sourced a bio-based, high-performance polyester fibre known as Sorona, which constitutes
0.11% of our total polyester consumption. Sorona contains over 20% bio-based carbon, which helps reduce
the environmental impact without sacrificing quality and performance. Sorona is produced using a
fermentation process which utilizes corn sugar as the main ingredient.
Leather: The Fashion Pact Dashboard allows us to assess overall risk in terms of biodiversity loss and land
use area. However, biodiversity risk specific to leather usage by a brand or company cannot be evaluated by
using this dashboard. We plan to explore a more specific tool for leather in future.
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In 2023, we sourced 61% of our leather from the USA, followed by Argentina (27%), Australia (6%) and Brazil
(5%). The risk assessment indicates that the USA has a risk rating of very high for land use impact and high
risk for biodiversity loss, while Argentina has a very high-risk rating for land use impact and a medium risk
rating for biodiversity loss. Australia has a medium-risk rating for both impact categories while Brazil has
very high-risk rating for both impact areas.
PUMA is taking several steps to mitigate the biodiversity risks associated with leather sourcing. These
include sourcing leather from LWG-rated tanneries, setting goals for sourcing deforestation-free leather,
and focusing on innovation in the development of recycled and other bio-based alternatives. We engage with
Fashion Pact, Textile Exchange and the Leather Working Group to remain updated about industry best
practices.
We have committed to sourcing all the bovine leather used in our products from verified deforestation-free
supply chains by 2030 or earlier launched by global non-profits Textile Exchange and the Leather Working
Group. The initiative aims to create equitable, transparent, and deforestation-free leather supply chains. The
cross-sector initiative is aimed at galvanizing brands into action to end the deforestation and conversion of
natural ecosystems linked to leather sourcing. In doing so, it looks to protect wildlife habitats and
biodiversity, preserve carbon stocks to mitigate climate change, and protect human rights.
Close to 100% of the leather that PUMA currently sources comes from Leather Working Group-certified
tanneries. This means that the leather used in PUMA products comes from manufacturers who are working
to implement industry best practices of environmental management and traceability. PUMA currently
monitors its LWG medal-rated tanneries’ upstream traceability performance.
However, around 76% of the leather used at PUMA is suede, a byproduct of the full-grain leather business.
The challenge faced currently by PUMA and others in the industry is that most suede tanneries work with
agents and intermediaries alongside direct tanneries, to guarantee a stable supply which creates a
challenge to have full traceability at the cattle ranch level.
Our innovation team has worked to address the technological limitations of a shoe designed for composting
and launched the RE:SUEDE experiment. In 2022, 500 participants were asked to wear their RE:SUEDEs for
six months before returning them to PUMA for the next stage of the experiment. A total of 412 pairs of worn
RE:SUEDEs were returned to PUMA and sent to our industrial composting partner Valor Composting – a
family business that takes a different approach to waste. We discovered that it is possible to turn the
RE:SUEDE into Grade A compost under specific industrial conditions provided by Ortessa. RE:SUEDE is
mainly made up of zeolite-tanned suede leather, hemp fibres, biodegradable TPE and organic cotton. The
zeolite tanning process is an innovative approach to in tanning chemicals, which use mineral zeolite and is
free from toxic substances such as chrome, heavy metal and aldehyde. We will continue to innovate with our
partners to determine the infrastructure and technologies needed to make the process viable for a
commercial version of the RE:SUEDE, including a take-back scheme, in 2024.
Synthetic Rubber: We sourced, 74% of our synthetic rubber from China, followed by Vietnam 14% and South
Korea 4%. China and South Korea are high-risk countries, while the risk profile for synthetic rubber from
Vietnam is not available on the EiQ platform. High risks are Greenhouse Gas emissions, water use and solid
waste.
We have not yet mapped the manufacturing plants supplying synthetic rubber to our outsole manufacturers.
As part of our 10FOR25, we work on developing recycled materials as alternatives to rubber. In 2023, 5% of
synthetic rubber was recycled. We engage our strategic outsole suppliers in Higg FEM (environmental
performance tool measurement which includes energy use and greenhouse gas emissions, water use,
wastewater, emissions to air and waste management) and work with them to eliminate pollutant chemicals.
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183
Natural Rubber: In 2023, we sourced 29% of natural rubber from Vietnam, followed by Brazil 25%,
Pakistan 13%, and Thailand 5%. Vietnam is categorised as an extreme risk country, while risk profiles for
natural rubber from Brazil, Pakistan and Thailand are not available on the EiQ platform. The main high risks
are water use and impact on ecosystem. In 2023, only 2% of the rubber used in our products was natural
rubber. We aim in future to only source FSC certified rubber. FSC certification include adopting standards to
maintain, conserve, and/or restore the ecosystem and environmental values of managed forests and avoid,
repair, or mitigate negative environmental impacts.
↗ G.35 PUMA CDP FOREST SCORE
PUMA’s CDP Forestry score improved from C in 2021 to B- in 2022. Until the end of January, 2024, we
retained our B-score. PUMA’s rating is better than the average performance of the sector (textile and fabric
goods) which has an average rating of C. The overall global average rating stands at C. For more
information, please visit the CDP website.
↗ T.49 E-KPIS - PAPER
1-4
*
Including paper bags, office paper and cardboard consumption
** Including outer cardboard boxes
1
PUMA figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in
Argentina. All other production is outsourced to independent supplier factories, some warehouse operations are outsourced
to independent logistics providers. Franchised stores are excluded.
2
PUMA production figures include core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories) and core Tier
2 supplier factories, Leather, PU and Textiles (40 factories).
3
Data includes extrapolations or estimates where no real data could be provided.
4
Methodological changes over the last three years have influenced results.
C
2020
C
2021
B-
2022
Paper (tons)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Paper and cardboard
consumption PUMA*
5,374
5,021
4,152
2,638
2,281
2,756
7%
95%
Certified or recycled paper and
cardboard consumption PUMA
4,911
4,393
3,306
1,848
1,818
2,025
12%
143%
Percentage of certified or
recycled paper consumption
91%
87%
80%
70%
80%
74%
Paper and cardboard
consumption from PUMA
production (shoe boxes,
hangtags)
25,602** 30,656** 19,670**
18,538
14,863
14,129
-16.5%
81.2%
Percentage of certified or
recycled paper and cardboard
consumption from PUMA
production
99%**
99%**
88%**
99%
100%
n/a
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184
ENVIRONMENTAL KEY PERFORMANCE DATA
Г
The PUMA Environmental Profit and Loss Account, or EP&L, calculates the environmental impact of
PUMA's activities in financial terms across six categories from raw material production to the PUMA store.
While the EP&L is not a precise measurement tool, it helps to show the categories and stages of the value
chain in which the impact is greatest and therefore gives a good indication of where we should focus our
efforts.
The EP&L methodology, was developed in 2011 by PWC and Truecost, and later refined by Kering with the
help of PWC. It mainly relies on material input and spending data.
Over the last years, we have added primary data for our Tier 1 and Tier 2 suppliers and developed specific
EP&L emission factors for major materials used, such as Better Cotton.
However, we are still in the process of fully aligning our EP&L methodology for Tiers 3 and 4 with internal
and external standards. As a result, the table below differs from our Scope 3 emission calculation in the
Climate section and also results in a high water value for Tier 3 due to some wet processing for leather and
polyester being attributed to Tier 3.
We will continue to work on the alignment of methodologies to strengthen the EP&L as a valuable risk
assessment and information tool.
↗ G.36 EP&L RESULTS 2023
Air pollution
GHG emission
Land use
Waste
Water use
Water pollution
Tier 0
Own
operations
Tier 1
Product
manufacturing
Tier 2
Component
manufacturing
Tier 3
Raw material
processing
Tier 4
Raw material
production
2%
9%
14%
28%
48%
Total
EP&L Value 2023: € 415 million
10%
33%
21%
4%
11%
22%
100%
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185
↗ G.37 EP&L TREND 2020 – 2023
From our EP&L results, we can conclude that the production (48%) and processing of raw materials (28%) is
responsible for the vast majority of the environmental impact from a process point of view, while
greenhouse gas emissions (33%), water pollution (22%) and land use (21%) are responsible for over half of
all environmental impact measured by the EP&L in terms of impact categories.
This confirms our strategy of transitioning to the use of low-impact materials at scale, while focusing on the
reduction of greenhouse gas emissions across our supply chain.
The EP&L trend over the last years shows that the EP&L value is growing slower than sales. This means
that while the overall impact was growing, we were able to reduce the EP&L value relative to sales. In 2023,
we achieved an absolute reduction.
└
PRODUCT/MATERIAL-RELATED E-KPIS
We have been measuring the average environmental key performance indicators (E-KPIs) from Textile and
Leather manufacturing (Tier 2) and Apparel and Footwear manufacturing (Tier 1) since 2017.
In 2023, the Greenhouse Gas emissions KPIs reduced across the product divisions, both Tier 1 and Tier 2,
except for the footwear division, where it almost remained stable (increase by 0.2%) as compared to 2020.
CO2 emissions per piece of garment reduced by 23.2%; per square metre of leather produced, CO2 emissions
have reduced by 40.7% and per ton of textile produced, CO2 emissions reduced by 9.2%. This was mainly
achieved due to various climate actions initiated as described in the report. The participation of core
suppliers in cleaner production and renewable energy programmes, installation of rooftop solar projects,
switching from coal to biomass, and the purchase of RECs are the main contributor for these reductions
achieved in Greenhouse Gas emissions.
In 2023, water consumption per pair/square metre reduced for footwear by 21.5% and 4.9% for textile as
compared to the baseline of 2020 mainly due to the implementation of water efficiency measures including
water recycling plants by a few textile mills towards the end of 2022.
However, the water KPI increased for apparel by 9.4%, and for leather by 11.7%. For apparel, production
reduced by 15% as compared to 2020 (which is 33% reduction from 2022). Most of the apparel factories use
water for domestic purposes and hence water consumption depends on the number of workers. In 2023, the
market environment and increased inventory levels resulted in a need for more cautious procurement from
441
530
549
415
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0
100
200
300
400
500
600
700
800
2020
2021
2022
2023
EP&L Value
Revenue
PUMA Annual Report 2023
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186
our suppliers, so the number of workers in core apparel factories decreased by 9% and production fell by
15% resulting in higher water consumption per piece of apparel as compared to 2020.
Out of five leather factories, two were new core factories and have not participated in resource efficiency
programmes. One of the tanneries in China has relatively high water consumption as they process raw hide
in-house, whereas other leather tanneries process wet blue leather (tanned leather, but not dried, dyed nor
finished). Also, one tannery in Vietnam started tracking and reporting rainwater usage in 2023.
In 2023, production waste to landfills decreased by 87.4% for apparel and by 64.7% for the footwear division
as compared to the 2020 baseline. This is mainly due to the adoption of better waste disposal practices by
our suppliers and being able to achieve diversion from landfill. We also observed that factories were able to
track and report waste data more accurately.
↗ T.50 FOOTWEAR E-KPI RESULTS (TIER 1)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
suppliers
Energy/pair (kWh)
1.63
1.36
1.41
1.31
1.30
1.25
1.40
24.8%
21
CO2/pair (kg)
0.75
0.7
0.68
0.74
0.96
0.93
1.00
0.2%
Water/pair (L)
11.8
9.6
11.9
15.1
15.2
12.3
14.5
-21.5%
Waste/pair (g)
122
134
141
145
127
109
116
-15.6%
Waste to
landfills/pair (g)
8.36
12.3
19.0
23.7
-
-
-
-64.7%
↗ T.51 APPAREL E-KPI RESULTS (TIER 1)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/piece
(kWh)
0.58
0.52
0.55
0.56
0.57
0.57
0.72
4.5%
19
CO2/piece (kg)
0.17
0.19
0.20
0.22
0.24
0.26
0.31
-23.2%
Water/piece (l)
5.03
3.83
4.23
4.60
4.39
4.20
7.58
9.4%
Waste/piece (g)
60.7
58.2
62.3
54.3
56.3
46.5
44.0
11.8%
Waste to
landfills/piece (g)
0.33
2.66
2.40
2.64
-
-
-
-87.4%
↗ T.52 LEATHER E-KPI RESULTS (TIER 2)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/SqM (kWh)
7.37
7.55
6.46
7.05
8.19
8.65
9.10
4.5%
5
CO2/SqM (kg)
1.61
2.34
1.89
2.72
3.21
3.16
3.39
-40.7%
Water/SqM (L)
76.4
56.9
60.9
68.3
74.7
90.20
91.80
11.7%
Waste/SqM (kg)
0.67
0.60
0.50
0.68
0.78
0.85
1.56
-1.4%
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↗ T.53 TEXTILES E-KPI RESULTS (TIER 2)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/ton (kWh)
14,320
13,122
13,394
13,049
12,636
13,387
13,679
9.7%
32
CO2/ton (T)
4.06
4.54
4.58
4.47
4.37
4.45
4.45
-9.2%
Water/ton (m3)
98.3
98.5
98.7
103
106
123
119
-4.9%
Waste/ton (kg)
276
289
121
78.9
62.1
70.6
300
250.0%
For tables on E-KPI results, the values for November and December 2023 were estimated by employing the Exponential
Smoothing (ETS) algorithm in Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after
comparing it to alternative methods, considering its performance against actual historical data, specifically in terms of deviation
from the actual values in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to
other methods, such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per
production unit) from the 12 months of data spanning from November 2021 to October 2022.
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REPORTING IN ACCORDANCE WITH THE EU
TAXONOMY REGULATION
TAXONOMY OBJECTIVES
The Taxonomy Regulation (EU) 2020/852 (in the following “the Taxonomy”) entered into force on 22 June 2020.
The purpose of this regulation is to provide a definition of what constitutes a sustainable economic activity
and to redirect capital flows into companies that are aligning their business models towards such sustainable
economic activities. To achieve this goal, companies must report on the proportion of “environmentally
sustainable” revenues, investments (capital expenditure) and operating expenses.
The focus of the Taxonomy lies on 6 environmental objectives:
• Climate change mitigation
• Climate change adaptation
• Sustainability and protection of water and marine resources
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems
• Transition to a circular economy
The Taxonomy has identified eligible economic activities that substantially contribute to each of these
environmental objectives. Linked to these eligible activities are technical screening criteria as well as do no
significant harm criteria and minimum safeguards that define whether the activity is considered sustainable
or not (aligned).
Delegated Regulation (EU) 2021/2178 as of July 6, 2021 on the climate objectives (climate change mitigation
(Annex I) and climate change adaptation (Annex II)) (“the Climate Delegated Act”), was published in the
Official Journal on December 9, 2021 and entered into force on January 1, 2022 ((EU) 2021/2139). Further
delegated acts for the remaining objectives were published in 2023, namely EU 2022/1214 (Complementary
Climate DA), EU 2023/2485 (amending EU 2021/2139), EU 2023/2486 (targets three to six), C(2023)3850
(Amended Climate DA) and C(2023)3851 Environmental DA (targets three to six).
DISCLOSURE REQUIREMENTS FOR NON-FINANCIAL UNDERTAKINGS
According to Article 2 of the Climate Delegated Act and Article 8 of the Taxonomy any undertaking subject to
the Non-Financial Reporting Directive (NFRD) must provide information on “environmentally sustainable”
revenues, investments (capital expenditure) and operating expenses (OpEx).
According to Article 10 of the Climate Delegated Act undertakings must disclose the proportion of
Taxonomy-eligible and Taxonomy non-eligible economic activities in their total turnover, capital expenditure
and operational expenditure. The eligibility of an activity implies that an activity is included in the Climate
Delegated Act. Whether an activity is Taxonomy-eligible or not says nothing about the sustainability of that
activity. Being Taxonomy-eligible is merely an indication that a certain activity makes a substantial
contribution to one of the six environmental objectives of the Taxonomy. From January 1, 2023, the
disclosure must also include information on taxonomy alignment, meaning only activities that are included
in the “environmentally sustainable share” of the three performance indicators. An economic activity is
environmentally sustainable if it:
• makes a significant contribution to the achievement of one or more environmental goals (significant
contribution, SC)
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• does not result in significant harm to one of more of the environmental objectives (do no significant
harm, DNSH)
• is carried out in compliance with a defined minimum level of protection (minimum safeguards, MS) and
complies with technical screening criteria (TSC) of Annex I and Annex II.
TAXONOMY-ELIGIBILITY OF PUMA’S ECONOMIC ACTIVITIES IN RESPECT TO THE
ENVIRONMENTAL OBJECTIVES OF THE EU TAXONOMY
The technical screening criteria in Annex I and Annex II of Delegated Regulation (EU) 2021/2139 of June 4,
2021 for the first two environmental objectives, namely climate change mitigation and climate change
adaptation, do not list any business activities that are linked to the production and sale of footwear, apparel
and accessories. This means that PUMA’s business activities so far do not qualify as contributing
substantially to climate change mitigation or climate change adaptation.
Further technical screening criteria were published as Annexes I, III and IV of Delegated Regulation (EU)
2023/2486 (supplementing EU 2020/852) of June 27, 2023, for the remaining environmental objectives,
namely sustainable use and protection of water and marine resources, pollution prevention and control as
well as restoration of biodiversity and ecosystems. Likewise, these do not list any business activities that are
linked to the production and sale of footwear, apparel and accessories.
For the remaining environmental objective published as Annex II, the transition to a circular economy,
activities related to apparel are listed, but are limited to sales generated by services such as repair,
remanufacturing or refurbishment, preparation for reuse, sale of second-hand goods, or product as a
service business models, none of which are not part of PUMA current revenue generating activities.
As mentioned in the Circularity section of this report, PUMA and its partners are piloting fibre to fibre
recycling technology and take-back systems. However, those activities have not generated any significant
Taxonomy-eligible or aligned sales under the definition of Annex II and had a project status in 2023.
Therefore, PUMA’s business activities in this regard are not considered Taxonomy-eligible (so far). Since
PUMA does not have any economic activities related to nuclear power or power generation from gas, PUMA
will not report the related standard forms from the Delegated Act (EU 2022/1214).
ELIGIBLE CAPITAL EXPENDITURE
PUMA understands that the Taxonomy and the Climate Delegated Act as well as the Environmental
Delegated Act including its Annexes nonetheless requires non-financial undertakings with non-Taxonomy
eligible economic activities to report on the part of the capital expenditure related to the purchase of output
from Taxonomy-aligned economic activities and individual measures enabling target activities to become
low-carbon or to lead to greenhouse gas reductions.
In this regard PUMA reviewed so-called cross-cutting activities that are not directly related to PUMA’s
primary business activity and are not revenue-generating for PUMA but still are of relevance to support
PUMA’s sustainability efforts. Taxonomy-eligible capital expenditure could be identified with regard to
“Transport” and “Real Estate Activities”.
The key figures are determined based on Delegated Regulations (EU) 2020/852, 2021/2139 and 2021/2178 as
well as 2023/2385 and 2023/2086 in conjunction with the accounting policies to be applied to the
consolidated financial statements. To avoid double counting, expenditure has been allocated to only one
economic activity.
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In 2023 PUMA made investments in several buildings, including:
• A new solar PV station in Germany (planned completion in 2024)
• New charging stations in Germany
• Office space in Argentina
The technical screening criteria of Annexes I and II define a taxonomy-aligned investment in buildings only
for those buildings that are ranked among the top 15% of their regional building stock in terms of Primary
Energy Demand (PED).
Since there is no precise definition of this 15%, for example in terms of area covered or primary energy
demand per m
2, and as the rental of buildings is not material to PUMA’s business performance in terms of
CO2 emissions, we have decided to report the Taxonomy-aligned investment in buildings for 2023 as zero.
This does not mean that PUMA is not investing in lowering CO2 emissions from its own entities. As described
in the Climate section of this report, our Scope 1 and 2 emissions have been reduced by 85% compared to
our baseline in 2017, mainly through green electricity tariffs or renewable energy attribute certificates.
In 2023 PUMA also invested in charging stations for electric cars, which do fall under the taxonomy
alignment criteria for climate mitigation. The total investment in these charging stations was 241 TEUR
(2022: 79 TEUR).
Furthermore, PUMA started to invest in additional solar PV capacity at its headquarters in Germany. The
investment in 2023 came to 262 TEUR (no investment in 2022).
As part of PUMA’s 10FOR25 sustainability targets, PUMA is transitioning its car fleet to more sustainable
transport vehicles. Therefore, in 2023 PUMA invested in the lease of 92 low or zero emission vehicles (2022:
64 vehicles).
Unlike buildings, the technical screening criteria for CO2 emissions for taxonomy alignments are clearly
defined as below 50 g CO2/km.
We can confirm that 92 cars added to our car fleet are Taxonomy-aligned with the technical screening
criteria based on their CO2 emission footprint, equalling an investment of over 2,000 TEUR (2022: 1,521 TEUR)
Considering the do-no-significant harm criteria of tires for passenger cars, not all those cars can be
considered as fully Taxonomy-aligned, as many of the standard tires used for our new electric cars from
Tesla, Volkswagen, Hyundai, Mercedes and BMW do not fulfil the criteria for noise emissions. As a result
the reported Taxonomy-aligned investment in vehicles for the year 2023 is 408 TEUR (2022: 372 TEUR).
The total capital expenditure (IAS 16, 38 and IFRS 16) of the PUMA Group amounts to 599,874 TEUR for the
year 2023 (2022: 669,382 TEUR). The eligible capital expenditure related to “Transport” amounts to 7,930
TEUR (2022: 5,427 TEUR) and the amount related to“Real Estate Activities /Other” is 336,500 TEUR
(2022:376,996 TEUR). The Taxonomy-aligned capital expenditure from investment in solar PV, low or zero
emission cars and charging stations for electric cars was 910 TEUR (2022: 372 TEUR).
ELIGIBLE OPERATIONAL EXPENDITURE
PUMA understands that the Taxonomy and the Disclosure Delegated Regulation (EU 21/2178) nonetheless
asks non-financial undertakings with non- Taxonomy eligible activities to report on the part of the
operational expenditure related to the purchase of output from Taxonomy-aligned economic activities and
individual measures enabling the target activities to become low-carbon or to lead to greenhouse gas
reductions.
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Due to the nature of our business model, which is the design, development, marketing and sale of footwear,
apparel and accessories, the eligible operational expenditure is not material in the context of the
environmental objectives of the Taxonomy, therefore the numerator of our taxonomy-eligible operational
expenditure is zero.
For the denominator, Article 2, Section 1.1.3.1. of Annex 1 the Climate Delegated Act asks for reporting on the
total operational expenditure derived from the categories “research and development, building renovation
measures, short-term lease, maintenance and repair and any other direct expenditures related to the day-
to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom
activities are outsourced that are necessary to ensure the continued and effective functioning of such
asset.” The total operational expenditure from these categories amounts to 113.4 TEUR (2022: 103.6 TEUR)
for the 2023 financial year.
OUTLOOK
At PUMA, we will continue the transition of our car fleet to low or zero emission vehicles in those countries
where the charging infrastructure can support running an electric car fleet. We also plan to continue
investing in te renewable energy capacity of the buildings we own. In addition, we will explore the activities
listed under “Transition to a circular economy” to assess their technical and financial viability over the next
years.
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Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Turnover
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxnomy-
aligned (A.1) or eligible (A.2)
turnover, year 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
Taxonomy-aligned environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which enabling
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
Taxonomy-eligible environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Turnover of Taxonomy-eligible but not environmentally
sustainable activities
(not Taxonomy-aligned activities) (A.2)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
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Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Turnover
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxnomy-
aligned (A.1) or eligible (A.2)
turnover, year 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. Turnover of Taxonomy eligible activities (A.1+A.2)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
8,601,699,000 100
TOTAL
8,601,699,000 100
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Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
CapEx
Proportion of CapEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
Activity 1: Installation, maintenance and repair of
charging stations for electric vehicles in buildings
(and parking spaces attached to buildings) (7.4)
F42,
F43,
M71
240,000
0.04
Y
Y
N/EL
N/EL
N/EL
N/EL
Y n.a. n.a. n.a. n.a. n.a.
Y
0.01
E
Activity 2: Installation, maintenance and repair of
renewable energy technologies (7.6)
F42,
F43,
M71
262,000
0.05
Y
Y
N/EL
N/EL
N/EL
N/EL
Y n.a. n.a.
Y
Y n.a.
Y
0
E
Activity 3: Transport by motorbikes, passenger
cars and light commercial vehicles (6.5)
N77.11
408,000
0.07
Y
Y
N/EL
N/EL
N/EL
N/EL
Y
Y n.a.
Y
Y n.a.
Y
0.04
E
CapEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
910,000
0.16
0.16
0.16
0
0
0
0
Y
Y n.a.
Y
Y n.a.
Y
0.05
Of which enabling
910,000
0.16
0.16
0.16
0
0
0
0
Y
Y n.a.
Y
Y n.a.
Y
E
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
T
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Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
CapEx
Proportion of CapEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
Activity 1: Acquisition and ownership of buildings
(7.7)
L68
335,998,000 60.01
EL
EL
N/EL
N/EL
N/EL
N/EL
56.31
Activity 2: Transport by motorbikes, passenger
cars and light commercial vehicles (6.5)
N77.11
7,522,000
1.34
EL
EL
N/EL
N/EL
N/EL
N/EL
0.77
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
343,520,000 61.36 61.36 61.36
0
0
0
0
57.09
A. CapEx of Taxonomy eligible activities (A.1+A.2)
344,430,000 61.52 61.52 61.52
0
0
0
0
57.13
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
215,444,000 38.48
42.87
TOTAL
559,874,000
100
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Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
OpEx
Proportion of OpEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-
aligned)
Taxonomy-aligned environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
OpEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which enabling
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
Taxonomy-eligible environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
0
0
0
0
0
0
0
0
0
A. OpEx of Taxonomy eligible activities (A.1+A.2)
0
0
0
0
0
0
0
0
0
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Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
OpEx
Proportion of OpEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
113,400,000 100
TOTAL
113,400,000 100
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INDEX FOR COMBINED NON-FINANCIAL REPORT
AND GRI CONTENT
This report constitutes a separate combined non-financial report in accordance with Sections 289b to 289e
and 315b, 315c in conjunction with Sections 289c to 289e of the German Commercial Code (HGB). This
consolidated combined non-financial report consists of the "Sustainability" and "Culture" subsections in the
"Our People"section as well as “Compliance Management System” and “Corporate Social Responsibility” in
the chapter “Corporate Governance Statement in accordance with Section 289f and Section 315d HGB”. The
reporting period covered is from January 1, 2023 to December 31, 2023. No restatements of information have
been made in this report. We have provided separate reports for PUMA SE and the PUMA Group within the
“Our People” section only. Separate reporting of other sustainability data would not add any meaningful new
information or value and would require significant additional resources, so we have omitted it here.
Information about PUMA’s business model is set out in the Financial section of this Annual Report. We have
not identified any most significant non-financial performance indicators according to Article § 289c, section
3, number 5 of the German Commercial Code (HGB). PUMA engaged KPMG AG Wirtschaftsprüfungs-
gesellschaft to perform a “limited assurance” audit of the combined sustainability report with a focus on
accordance with the German CSR Implementation Act (CSR-RUG).
Since 2003 PUMA’s sustainability reports are based on the guidelines of the Global Reporting Initiative (GRI),
which developed detailed and widely recognised standards on sustainability reporting. PUMA SE has
prepared this report with reference to the GRI Standards GRI 1: Foundation 2021. This option enables us to
report on the impacts related to our economic, environmental, social and governance performance. It
includes topics that are material to PUMA’s business and our key stakeholders, and that constitute our
sustainability targets. These targets have been systematically developed in accordance with the feedback
from PUMA’s stakeholders.
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GENERAL DISCLOSURES
Location
Pages
GRI 2: General
Disclosures 2021
2-1 Organisational details
Commercial activities and organisational
structure
214
2-2 Entities included in the
organisation’s sustainability reporting
Scope of the Report
48
2-3 Reporting period, frequency and
contact point
Index for combined non-financial report
and GRI content, Imprint
198
2-4 Restatements of information
Index for combined non-financial report
and GRI content
198
2-5 External assurance
Limited assurance report of the
independent practitioner regarding the
separate non-financial group report
205
2-6 Activities, value chain and other
business relationships
Commercial activities and organisational
structure; Sourcing
214, 220
2-7 Employees
Our People; Employees
16, 222
2-9 Governance structure and
composition
Description of the working practices of
the management board and the
supervisory board
254
2-10 Nomination and selection of the
highest governance body
Description of the working practices of
the management board and the
supervisory board
254
2-11 Chair of the highest governance
body
Description of the working practices of
the management board and the
supervisory board
254
2-12 Role of the highest governance
body in overseeing the management of
impacts
Sustainability organisation and
governance structure; Description of the
working practices of the management
board and the supervisory board
36, 254
2-13 Delegation of responsibility for
managing impacts
Sustainability organisation and
governance structure
36
2-14 Role of the highest governance
body in sustainability reporting
Sustainability committee
8
2-15 Conflicts of interest
Diversity concept for the supervisory
board
254
2-16 Communication of critical concerns Risk and opportunity report
255
2-17 Collective knowledge of the highest
governance body
Compensation System
https://about.puma.com/en/investor-
relations/corporate-governance
2-19 Remuneration policies
Description of the working practices of
the management board and the
supervisory board
254
2-20 Process to determine remuneration Description of the working practices of
the management board and the
supervisory board.
Compensation System
https://about.puma.com/en/investor-
relations/corporate-governance
254
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Location
Pages
GRI 2: General
Disclosures 2021
2-21 Annual total compensation ratio
Description of the working practices
of the management board and the
supervisory board.
Compensation Report
https://about.puma.com/en/investor-
relations/corporate-governance
254
2-22 Statement on sustainable
development strategy
CEO Letter; Foreword
5, 31
2-23 Policy commitments
https://about.puma.com/en/sustaina
bility/codes-policies-and-handbooks
2-24 Embedding policy commitments
PUMA's FOREVER. BETTER.
Sustainability Strategy; Human Rights
35, 53
2-25 Processes to remediate negative
impacts
Human Rights
67-78
2-26 Mechanisms for seeking advice
and raising concerns
Compliance management system
254
2-28 Membership associations
Stakeholder outreach
38-41
2-29 Approach to stakeholder
engagement
Stakeholder outreach
38-41
2-30 Collective bargaining
agreements
Human Rights at own entities
53
MATERIAL TOPICS
Location
Pages
3-1 Process to determine material
topics
Most material aspects
42-44
GRI 3: Material
Topics 2021
3-2 List of material topics
Most material aspects
42-44
ANTI-CORRUPTION
Location
Pages
3-3 Management of material topics
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
263
GRI 3: Material
Topics 2021
205-2 Communication and training
about anti-corruption policies and
procedures
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
263
PUMA Annual Report 2023
↗ Sustainability
201
TAX
Location
Pages
GRI 207: Tax 2019
207-1 Approach to tax
“WE PAY OUR FAIR SHARE” is the
core principle the PUMA Group is
taking into consideration for its global
tax strategy. In this regard, PUMA
fully commits to act in accordance
with all international tax regulations
and to fulfill any tax obligations
arising from its business activities.
All information regarding PUMA’s tax
approach can be found in the tax
strategy
(https://about.puma.com/en/investor-
relations/corporate-governance, see
Tax Strategy)
As it is a general principle for PUMA
to follow tax rules and to pay
applicable taxes, taxes as such are
not a material issue within the
sustainability approach.
Consequently, PUMA does not report
in detail on the GRI Standard in this
regard.
MATERIALS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Recycled material usage; Material
origin
157, 173
GRI 301: Materials
2016
301-1 Materials used by weight or
volume
Recycled material usage; Material
consumption data
157, 173
301-2 Recycled input materials used
Recycled material usage
157, 173
ENERGY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Climate
104
GRI 302: Energy
2016
302-3 Energy intensity
Climate
104
PUMA Annual Report 2023
↗ Sustainability
202
WATER AND EFFLUENTS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Water and air
142
303-2 Management of water
discharge-related impacts
Water and air
142
303-5 Water consumption
Water and air
142
BIODIVERSITY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Biodiversity
177
GRI 304:
Biodiversity 2016
304-1 Operational sites owned,
leased, managed in, or adjacent to,
protected areas and areas of high
biodiversity value outside protected
areas
Biodiversity
177
EMISSIONS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Climate
104
305-1 Direct (Scope 1) GHG emissions Climate
104
305-2 Energy indirect (Scope 2) GHG
emissions
Climate
104
305-3 Other indirect (Scope 3) GHG
emissions
Climate
104
305-4 GHG emissions intensity
Climate
104
GRI 305: Emissions
2016
305-5 Reduction of GHG emissions
Climate
104
WASTE
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Circularity
156
306-1 Waste generation and
significant waste-related impacts
Circularity
156
GRI 306: Waste 2020 306-2 Management of significant
waste-related impacts
Circularity
156
PUMA Annual Report 2023
↗ Sustainability
203
OCCUPATIONAL HEALTH AND SAFETY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Our people occupational health and
safety
22
403-2 Hazard identification, risk
assessment, and incident
investigation
Our people occupational health and
safety
22
403-9 Work-related injuries
Our people occupational health and
safety
22
DIVERSITY AND EQUAL OPPORTUNITY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
254
GRI 405: Diversity
and Equal
Opportunity 2016
405-1 Diversity of governance bodies
and employees
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
254
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 407: Freedom of
Association and
Collective
Bargaining 2016
407-1 Operations and suppliers in
which the right to freedom of
association and collective bargaining
may be at risk
Human Rights in the supply chain
55
FORCED OR COMPULSORY LABOR
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 409: Forced or
Compulsory Labor
2016
409-1 Operations and suppliers at
significant risk for incidents of forced
or compulsory labor
Human Rights in the supply chain
55
PUMA Annual Report 2023
↗ Sustainability
204
SUPPLIER SOCIAL ASSESSMENT
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 414: Supplier
Social Assessment
2016
414-1 New suppliers that were
screened using social criteria
Human Rights in the supply chain
55
414-2 Negative social impacts in the
supply chain and actions taken
Human Rights in the supply chain
55
PUMA Annual Report 2023
↗ Sustainability
205
KPMG ASSURANCE STATEMENT
To the PUMA SE, Herzogenaurach
We have performed a limited assurance engagement on the combined separate non-financial group report
of PUMA SE, Herzogenaurach (hereinafter: “company”), which was combined with the non-financial report
of the parent company for the period from January 1 to December 31, 2023 (hereinafter the “consolidated
non-financial report”). This consolidated non-financial report consists of the chapter “Sustainability”, the
section “Culture” in the chapter “Our People” and the sections “Compliance Management System” and
“Corporate Social Responsibility” in the chapter “Corporate Governance Statement in accordance with
Section 289f and Section 315d HGB” of the Annual Report 2023 of PUMA SE, Herzogenaurach.
Not subject of our assurance engagement was the material audit of the external sources of documentation,
interviews, case studies, expert opinions, the Environmental Profit & Loss figures as well as checking the
content of links to internet pages mentioned in the non-financial report (see Annex 1 to the assurance
report).
Responsibilities of Management
Management of PUMA SE, Herzogenaurach, is responsible for the preparation of the consolidated non-
financial report in accordance with Sections 315c in conjunction with 289c to 289e HGB and Article 8 of
REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of June 18, 2020 on
establishing a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088
(hereinafter the “EU Taxonomy Regulation”) and the Delegated Acts adopted thereunder, as well as for
making their own interpretation of the wording and terms contained in the EU Taxonomy Regulation and the
delegated acts adopted thereunder as set out in section “Reporting in accordance with the EU taxonomy
regulation” of the consolidated non-financial report.
This responsibility of the legal representatives of the company includes the selection and application of
appropriate non-financial reporting methods and making assumptions and estimates about individual non-
financial disclosures of the group that are reasonable in the circumstances. Furthermore, management is
responsible for such internal control as they consider necessary to enable the preparation of a consolidated
non-financial report that is free from material misstatement, whether due to fraud (manipulation of the
non-financial group report) or error.
The EU Taxonomy Regulation and the Delegated Acts issued thereunder contain wording and terms that are
still subject to considerable interpretation uncertainties and for which clarifications have not yet been
published in every case. Therefore, management has disclosed their interpretation of the EU Taxonomy
Regulation and the Delegated Acts adopted thereunder in section “Reporting in accordance with the EU
taxonomy regulation” of the consolidated non-financial report. They are responsible for the defensibility of
this interpretation. Due to the immanent risk that indeterminate legal terms may be interpreted differently,
the legal conformity of the interpretation is subject to uncertainties.
Independence and Quality Assurance of the Assurance Practitioner
We have complied with the independence and quality assurance requirements set out in the national legal
provisions and professional pronouncements, in particular the Professional Code for German Public
Auditors and Chartered Accountants (in Germany) and the IDW Standard on Quality Management 1:
Requirements for Quality Management in Audit Firms (IDW QMS 1 (09.2022)).
PUMA Annual Report 2023
↗ Sustainability
206
Responsibility of the Assurance Practitioner
Our responsibility is to express a conclusion with limited assurance on the consolidated non-financial report
based on our assurance engagement.
We conducted our assurance engagement in accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised): “Assurance Engagements other than Audits or Reviews of Historical
Financial Information” issued by the IAASB. This standard requires that we plan and perform the assurance
engagement to obtain limited assurance about whether any matters have come to our attention that cause
us to believe that the company’s consolidated non-financial report, other than the external sources of
documentation or expert opinions mentioned in the non-financial report, is not prepared, in all material
respects, in accordance with Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy
Regulation and the Delegated Acts issued thereunder as well as the interpretation by management
disclosed in section “Reporting in accordance with the EU taxonomy regulation” of the consolidated non-
financial report.
In a limited assurance engagement, the procedures performed are less extensive than in a reasonable
assurance engagement, and accordingly, a substantially lower level of assurance is obtained. The selection
of the assurance procedures is subject to the professional judgment of the assurance practitioner.
In the course of our assurance engagement we have, among other things, performed the following
assurance procedures and other activities:
• Gain an understanding of the structure of the Group’s sustainability organisation and stakeholder
engagement.
• Inquiries of management and relevant employees involved in the preparation of the consolidated non-
financial report about the preparation process, about the internal control system related to this process,
and about disclosures in the non-financial report.
• A risk analysis, including media research, to identify relevant information on PUMA SE’s sustainability
performance in the reporting period.
• Identification of likely risks of material misstatement in the consolidated non-financial report.
• Analytical procedures on selected disclosures in the consolidated non-financial report.
• Inquiries of management and relevant employees that are responsible for determining disclosures about
concepts, due diligence processes, results and risks, performing internal control procedures and
consolidating disclosures in the preparation of the consolidated non-financial report.
• Inspection of selected internal and external documents.
• Analytical procedures for the evaluation of data and of the trends of quantitative disclosures as reported
at Group level by all sites.
• Evaluation of local data collection, validation and reporting processes as well as the reliability of
reported data based on a sample taken at nine suppliers (remote site visits) and two offices (on-site and
remote site visits).
• Assessment of the overall presentation of the disclosures.
• Inquiries of Group level personnel in order to understand the processes for identifying relevant economic
activities according to the EU Taxonomy Regulation.
• Evaluation of the process for the identification of taxonomy-eligible and taxonomy-aligned economic
activities and the corresponding disclosures in the consolidated non-financial report.
In determining the disclosures in accordance with Article 8 of the EU Taxonomy Regulation, management is
required to interpret undefined legal terms. Due to the immanent risk that undefined legal terms may be
interpreted differently, the legal conformity of their interpretation and, accordingly, our assurance
engagement thereon are subject to uncertainties.
PUMA Annual Report 2023
↗ Sustainability
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@@linksunterzeichner--@@
@@rechtsunterzeichner--@@
Assurance Opinion
Based on the assurance procedures performed and the evidence obtained, nothing has come to our
attention that causes us to believe that the consolidated non-financial report of PUMA SE, Herzogenaurach
for the period from January 1 to December 31, 2023 has not been prepared, in all material respects, in
accordance with Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy Regulation and
the Delegated Acts issued thereunder as well as the interpretation by management as disclosed in section
“Reporting in accordance with the EU taxonomy regulation” of the consolidated non-financial report.
We do not express an assurance opinion on the external sources of documentation, interviews, case studies,
expert opinions, Environmental Profit & Loss as well as content of links to internet pages mentioned in the
consolidated non-financial report (see Annex 1 to the assurance report).
Restriction of Use
This assurance report is solely addressed to the PUMA SE.
Our assignment for PUMA SE and professional liability is governed by the General Engagement Terms for
Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (German Public Auditors and Public Audit Firms)
(Allgemeine Auftragsbedingungen für Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) in the
version dated January 1, 2017 (Appendix 2). By reading and using the information contained in this assurance
report, each recipient confirms having taken note of provisions of the General Engagement Terms (including
the limitation of our liability for negligence to EUR 4 million as stipulated in No. 9) and accepts the validity of
the attached General Engagement Terms with respect to us.
Nuremberg, February 1st, 2024
KPMG AG
Wirtschaftsprüfungsgesellschaft
PUMA Annual Report 2023
↗ Combined Management Report
208
COMBINED MANAGEMENT REPORT OF
PUMA SE FOR THE FINANCIAL YEAR 2023
Overview 2023
210
PUMA Group essential information
214
Commercial activities and organisational structure 214
Targets and strategy
215
Product development and design
217
Sourcing
220
Employees
222
Management system
225
Information regarding the non-financial report
227
Economic report
228
General economic conditions
228
Sales development
229
Results of operations
233
Development of the segments
237
Dividends
238
Net assets and financial position
239
Cash flow
242
Statement regarding the business development and
the overall situation of the Group
245
Comments on the Financial Statements of
PUMA SE in accordance with the German
Commercial Code (HGB)
247
Results of operations
247
Net assets
249
Financial position
250
Outlook
250
Combined Management Report: This report
combines the Management Report of the PUMA
Group and the Management Report of PUMA SE
Information concerning takeovers
251
Corporate governance statement in accordance
with section 289f and 315d HGB
254
Risk and Opportunity Report
255
Risk Management System
255
Risks
258
Opportunities
267
Overall Assessment of the Risk and Opportunity
Situation
268
Main Features of the Internal Control and Risk
Management System as it relates to the Group's
Accounting Process
268
Internal Control System
269
Outlook report
272
Global economy
272
Sporting goods industry
272
Outlook 2024
272
Investments
273
Foundation for Long-Term Growth
273
PUMA Annual Report 2023
↗ Combined Management Report
209
Notes relating to forward-looking statements
This document contains statements about the future business development and strategic direction of the
Company. The forward-looking statements are based on management's current expectations 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 combined 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 developments. We therefore assume no liability for the accuracy of
these forecasts.
┌
These sections contain content or cross-references not required by law, which were not audited by the
auditor, but were merely read critically. In the case of cross-references, the information to which the cross-
references refer was also not audited.
└
PUMA Annual Report 2023
↗ Combined Management Report
210
OVERVIEW 2023
┌
In 2023, we celebrated PUMA’s 75th anniversary with events around the world which highlighted our proud
history with our employees and our brand ambassadors. PUMA’s founder Rudolf Dassler had the vision of
making products that would provide athletes with the agility and speed of a puma and through this vision,
PUMA has left a firm mark on sports and culture since 1948.
Even though we faced many global uncertainties during the year, PUMA was able to sustain its strong brand
momentum as we launched significant new products and initiatives.
In Teamsport, the Women's World Cup in Australia and New Zealand was an important moment to
emphasize our commitment to women’s football and to demonstrate our leading product offer for women:
PUMA is the only sports brand to offer all boots in women’s specific fits. On pitch, PUMA supplied more than
100 players and the fact that more than 90% of them chose our women’s fit shows that there is a real
demand for these products.
We introduced new versions of the successful boots ULTRA and FUTURE and redesigned the KING without
kangaroo leather. Instead, PUMA uses K-BETTER, a completely new, vegan material for the upper which
contains at least 20% recycled material. K-BETTER has proven to outperform the previous versions of the
KING in testing for touch, comfort, and durability. The performance characteristics of K-BETTER were so
convincing that PUMA committed to stop producing football boots with kangaroo leather altogether in 2023
as the first company in the industry.
In club football, PUMA team Manchester City won the treble for the first time in its history: the UEFA
Champions League, the Premier League and the FA CUP, showcasing that it’s currently the best football
team in the world. Manchester City was also the first team in PUMA’s history to win the Treble.
Many PUMA teams were among the best in their respective countries: In Germany, Borussia Dortmund was
a close runner up in the Bundesliga, in France, RC Lens and Olympique de Marseille finished second and
third in Ligue 1, in Sweden, Malmö FF won the Allsvenskan and in the Netherlands, PSV Eindhoven once
again won the KNVB Cup. Elsewhere, the young talents of PUMA team Uruguay became world champions at
the FIFA U-20 World Cup in Argentina.
To extend our global reach in football, we signed agreements with South American football federation
CONMEBOL and the African football federation CAF. As part of these agreements, PUMA will become very
visible during the tournaments organised by these federations, for example by supplying the official match
ball, equipping referees and officials and also conducting exciting marketing campaigns which will engage
with football fans on these continents.
On the players’ side, PUMA welcomed some of the most inspirational talents of their generation as brand
ambassadors in 2023 such as Kai Havertz, the Arsenal and Germany midfielder, Jack Grealish, the
Manchester City and England playmaker, and Xavi Simons, the RB Leipzig and Netherlands midfielder.
In track and field, the World Athletics Championships in Budapest were an immense success for us, as
PUMA-sponsored athletes won 22 medals, including six gold medals, twice the medal count achieved in
Eugene in 2022. PUMA athletes also won 17 medals at the European Indoor Championships in Istanbul.
Armand “Mondo” Duplantis once again set a new pole vault world record of 6 meters 23. For his outstanding
performances, Mondo was named Male Athlete of the Year 2023 – the third time he received this award in
four years’ time. At the World Para Athletics Championships in Paris, PUMA athletes took 13 medals, with
Cuban sprinter Omara Durand adding to her status as one of the most successful para-athletes of her
generation with three gold medals.
PUMA Annual Report 2023
↗ Combined Management Report
211
We built on our impressive portfolio of brand ambassadors by welcoming Marcell Jacobs, the current
Olympic 100 m Champion, and Julien Alfred, the current NCAA 100m Champion to the PUMA Family.
In our Running category, we continued to focus on establishing our NITRO™ foam technology in the market.
With our supercritical NITRO™ foam, PUMA has one of the best foams in the industry and we are fully
determined to become a sought-after brand in road running. We continue to see a strong growth trajectory
in our third year after the launch of our first NITRO™ running shoes and further underlined our credibility
with signings of new running ambassadors: European 5,000 m Champion Konstanze Klosterhalfen,
marathon legend Edna Kiplagat and European marathon Champion Aleksandra Lisowska.
In basketball, we introduced the third signature shoe for PUMA Hoops ambassador LaMelo Ball, the MB.03,
following the tremendous success of his first signature products. The MB.03 launched in several colours,
including a version inspired by the popular cartoon series Dexter’s Laboratory.
PUMA teamed up with NBA rookie and the 3rd NBA Draft Pick Scoot Henderson to present the new All-Pro
NITRO™, PUMA’s newest basketball silhouette, which features our NITRO™ foam technology. Later in the year,
Scoot became the youngest player ever to receive his own signature shoe, the Scoot Zeros. Breanna Stewart,
our WNBA ambassador, introduced several versions of her signature shoe Stewie 2 throughout the year.
Our athletes also achieved tremendous success on court, as Breanna Stewart became the most valuable
player for the WNBA for the second time and Dennis Schröder became the MVP of the tournament at the
Basketball World Championships in Southeast Asia, when he led Germany to its first title.
After the strong success of PUMA in basketball over the past years, we decided to broaden our reach and
further strengthen our connection to the younger consumers. Partnering with NXTPRO gives PUMA access
to one of the top 3 Amateur Basketball circuits with 15,000 players.
In golf, we introduced the AEROJET family of clubs, which feature a raised skirt, symmetrical shaping and
streamlined edges. Designed to achieve new levels of speed not believed to be possible until now, the
AEROJET was named best driver for distance by Golf Monthly.
To underscore our credibility in this sport, PUMA ambassador Rickie Fowler captured his sixth PGA Tour
victory at the Rocket Mortgage Classic in Detroit, while Patricia Isabel Schmidt secured her maiden
European Tour win at the Belgian Ladies Open.
PUMA further added to its dominant position in motorsport by signing a landmark agreement with Formula
1 to become the sport’s official licensing partner and exclusive trackside retailer. While PUMA will equip F1
officials and our subsidiary stichd will operate the fan retail stores during race weekends, we will also
produce exciting collections for the growing number of F1 fans around the world.
The PUMA x F1 collections will be designed by A$AP Rocky, whom PUMA presented as the creative director
for F1 in a game changing announcement. As one of the biggest cultural influencers of his day, A$AP has the
vision and the talent to really provide a new perspective on this category. The first successful capsule
collection was launched during the Las Vegas Grand Prix with many more products to come in 2024 and
beyond. The extension of PUMA’s long-term partnership with Ferrari and a new contract with Williams
Racing further increased our dominance in motorsport.
In Sportstyle, global superstar Rihanna returned to PUMA in 2023 and the first joint product of the FENTY x
PUMA collection, the Avanti, created a huge buzz and sold out on PUMA.com immediately. At the end of the
year, she followed up on the Avanti with the launch of the Creeper Phatty, a remake of the plateau style she
pioneered during her first collaboration with PUMA, which was named “Shoe of the Year” by Footwear News
in 2016.
PUMA Annual Report 2023
↗ Combined Management Report
212
PUMA’s Sportstyle offering also benefited from our strong take on the terrace trend. We reintroduced our
classics Palermo and Super Team to the market and saw strong demand for the first drops. To mark 50
years of hip-hop, PUMA took a journey through time with the iconic Suede, and we created several versions
which showed how hip-hop evolved and left its unmistakable impact on culture. On time with the ongoing
skate trend in the market, we also launched the all-new Suede XL at the end of the year.
With styles such as the CA Pro, Slipstream and Doublecourt, we continued to have the right proposition for
the ongoing demand for white court shoes, with our RS-X and the Velophasis we further built on our
Progressive Running offer and with our Mayze we continued to excite our female consumers.
Our Sportstyle offer was complemented by several successful Select collaborations with partners such as
Noah, Palomo Spain and Rhuigi.
└
In financial year 2023, PUMA found itself in an increasingly difficult geopolitical and macroeconomic
environment. The conflict in the Middle East, the war in Ukraine, persistent inflation and risks of recession
had a negative impact on the consumer sentiment and led to volatile retail demand. For this reason, the
Management saw 2023 as a transitional year in which PUMA focused entirely on the factors that could be
directly influenced. The main focus was on operational flexibility, the normalisation of inventories and
ongoing cost discipline. The purpose of this was to overcome the short-term challenges without
compromising the medium and long-term success of PUMA. In this respect, sales growth and increasing
market shares took priority over short-term profitability optimisation.
Despite the difficult market environment, PUMA was able to further increase its sales and set a new sales
record in financial year 2023, based on continued strong brand momentum, exciting product launches,
strong partnerships in all areas of the value chain and a focus on flexibility in operating activities. Currency-
adjusted sales increased by 6.6%. Due to strong negative currency effects this corresponds to an increase in
sales in the reporting currency, the euro, of 1.6% from € 8,465 million in the previous year to € 8,602 million
in 2023. The positive sales development was achieved despite the significant devaluation of the Argentine
peso and was therefore largely in line with the outlook of currency-adjusted sales growth in the high single-
digit percentage range.
Unfavourable currency effects, industry-wide sales promotion measures and fluctuating sourcing prices
and freight costs had a negative impact on the gross profit margin in 2023. These negative effects were more
than offset by price adjustments and a favourable regional and distribution channel mix. Overall, this led to
an improvement in the gross profit margin from 46.1% in the previous year to 46.3% in 2023. The net
expenditure of other operating income and expenses increased by a total of 3.3% in financial year 2023 to
€ 3,403 million (from € 3,296 million in the previous year). The increase was mainly due to higher sales-
related distribution and other variable costs, the strong growth in our direct-to-consumer sales and higher
marketing investments. This development was partially offset by operational leverage in other cost areas
and favourable exchange rate effects. Due to the continued cost control, the cost ratio increased only from
38.9% in the previous year to 39.6% in 2023.
Despite the sales growth and the improvement in the gross profit margin, the slight increase in the cost
ratio during the past financial year led to a slight decline in operating result (EBIT) of 3.0% to € 621.6 million
(from € 640.6 million in the previous year). Despite the significant devaluation of the Argentine peso,
operating result was therefore well within the € 590 million to € 670 million range. However, the EBIT
margin fell from 7.6% in the previous year to 7.2% in 2023. The devaluation of the Argentine peso had a
particularly negative effect on the financial result. Because of this, consolidated net income amounted to
€ 304.9 million compared to € 353.5 million in the previous year. This corresponds to a decrease of 13.7%.
Earnings per share therefore decreased from € 2.36 in the previous year to € 2.03.
PUMA Annual Report 2023
↗ Combined Management Report
213
The positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose
the distribution of a dividend of € 0.82 per share for the financial year 2023 at the Annual General Meeting on
22 May 2024. This corresponds to a payout ratio of 40.3% of consolidated net income according to IFRS. The
higher payout ratio results from the strong improvement in free cash flow and reflects the underlying
positive operating business development. In general, PUMA's dividend policy continues to provide for a
payout of 25% to 35% of consolidated net income. In the previous year, a dividend of € 0.82 per share was
paid out (payout ratio for previous year: 34.7%).
The PUMA share had a negative performance in financial year 2023. Based on the share price at the end of
the previous year, the PUMA share started 2023 at a price of € 56.70. In the following twelve months, the
price of the PUMA share ranged between € 67.22 (February 2023) and € 44.36 (May 2023). At the end of 2023,
the price of the PUMA share was € 50.52, which represents a decline of 10.8% compared to the previous
year. The market capitalisation of the PUMA Group amounted to around € 7.6 billion at year-end 2023
(previous year: € 8.5 billion).
PUMA Annual Report 2023
↗ Combined Management Report
214
PUMA GROUP ESSENTIAL INFORMATION
COMMERCIAL ACTIVITIES AND ORGANISATIONAL STRUCTURE
PUMA SE operates as a European stock corporation with Group headquarters in Herzogenaurach, Germany.
In the internal reporting, our business activities are mapped according to three major regions (EMEA, the
Americas and Asia/Pacific) and three product divisions (footwear, apparel and accessories). In addition, we
consider seven segments for internal management purposes, as shown in the segment reporting.
Our revenues are derived in particular from the sale of products from the PUMA and Cobra Golf brands via
the wholesale and retail trade, as well as from sales directly to consumers in our own retail stores and
online stores. We market and distribute our products worldwide primarily via our own subsidiaries. There
are distribution agreements in place with independent distributors in a small number of countries.
As of 31 December 2023, 99 subsidiaries were controlled directly or indirectly by PUMA SE. Our subsidiaries
carry out various tasks at the local level, such as distribution, marketing, product development, sourcing
and administration. A full list of all subsidiaries can be found in chapter 2 of the Notes to the Consolidated
Financial Statements (in the subsection "Group of consolidated companies").
PUMA Annual Report 2023
↗ Combined Management Report
215
TARGETS AND STRATEGY
PUMA started 2023 by sharpening its strategic priorities.
↗ G.01 STRATEGIC PRIORITIES
Our strategic framework consists of a triangle: Elevate the Brand, Increase Product Excellence, and
Improve Distribution Quality. Within this context, we placed a special emphasis on implementing this
strategic framework in the US and China – two key countries where our current market shares are
significantly too low. The strategic framework triangle is based on our three foundational pillars of focusing
on people first, evolving sustainability and digitalizing PUMA’s infrastructure.
┌
By elevating the brand, we want to anchor PUMA more deeply in the hearts and minds of customers, to
become more consumer centric and to focus our investments on fewer Tier 1 ambassadors with a bigger
reach. Finally, we will also improve our focus and engage with consumers with fewer, bigger and better
brand and product campaigns going forward.
With our rich history of having served athletes since 1948, our PUMA brand has some of the best logos in the
whole industry and a huge archive of the most iconic sport moments, athletes, and products in history. This
unmatchable DNA gives our product designers and marketeers a unique opportunity to tell our brand and
product stories with the authenticity and credibility of a true sports brand.
We continuously focus on enhancing our product excellence and we put innovation and quality at the heart
of our designs. All PUMA products will have 100% sports DNA. While we celebrate the sports roots of our
shoes on the Sportstyle side, we push for new innovations on the performance side to make our athletes
even faster. We keep on leveraging our NITRO™ foam technology in our key running styles Deviate, Velocity
and ForeverRun and are continuously evolving to improve the cushioning, responsiveness and weight of our
shoes. We are also continuously evolving our three strong football footwear franchises FUTURE, ULTRA and
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KING, which is reflected in our ongoing market share gains in this highly competitive market. Finally, we
also introduced the All-Pro, which we believe is one of the best basketball shoes in the industry and we will
continue to evolve our All-Pro proposition going forward.
PUMA is continuously improving the quality of its distribution in wholesale. Our retail partners are our key
priority as we believe that the consumers enjoy a multi-branded retail environment to make the best
product choices. To cater to the requirements of our retail partners and to build long-term partnerships
with them, we provide our retail partners with the best and fastest service in the industry. PUMA continues
to pursue its direct-to-consumer business as a complementary offering in its distribution strategy to realize
the roles which our retail partners cannot fulfil, namely brand storytelling.
└
In the United States, we see significant opportunities to enhance our market share in the world’s biggest
sports market. To achieve this, we need to position ourselves as a credible performance brand. Our
initiatives in basketball, motorsport and even football - as our new partner CONMEBOL will host the next
Copa America in the US – will all contribute to this target. With our roster of athletes including LaMelo Ball,
Scoot Henderson, and Breanna Stewart in basketball and Christian Pulisic in football, we have the right
brand ambassadors in place to connect with our target audiences in a credible manner. Furthermore, we’re
also focussing on creating more US-first products, improving our distribution quality in the US and
strengthening our local US organisation.
Next to the United States, we see significant opportunities to enhance our market shares in China, the
world’s most dynamic sports market. PUMA also has a clear strategy in place when it comes to our rebound
in the Chinese market. We want to position PUMA as a global sports brand in China, leverage our local-for-
local resources both in terms of design and sourcing to deliver the right product to the Chinese consumer,
improve our distribution quality in this digital-first market and strengthen our local China organisation.
Putting our people first is an important part of our corporate strategy. PUMA’s working culture is
characterised by diversity, inclusion, and equality, as our employees have many different nationalities and
backgrounds. We believe this diversity to be one of our key strengths and we were thrilled to be named a
global Top Employer in 2023. Our commitment to equality was rewarded when an independent agency
certified that we had closed the adjusted pay gap between women and men among our employees in
Germany. We will continue to work hard to provide our employees with an inspiring place to work which
reflects our values.
The aim of our FOREVER.BETTER. sustainability strategy is to fully integrate sustainability into all our core
business functions. By 2025, we want to make nine out of ten products with materials such as certified
cotton and viscose or recycled polyester. We also want to become more circular.
With our RE:SUEDE project, we showed in 2023 how we can successfully turn an experimental version of our
classic Suede sneaker into compost under certain tailor-made industrial conditions. Going forward, we will
continue to innovate with our partners to determine the infrastructure and technologies needed to make the
process viable for a commercial version of the RE:SUEDE, including a takeback scheme.
To reach younger audiences with our sustainability strategy, we started our “Voices of a RE:GENERATION”
initiative. The Voices, who are GEN-Z activists and environmentalists, regularly join PUMA to give our senior
management feedback on how we can further strengthen our sustainability strategy. The voices also visited
the factories of our partners in Asia and Turkey and helped us communicate with younger audiences
throughout the year. We believe that new ways of communication like this and transparency are essential for
the journey towards a more sustainable world.
To operate efficiently and to keep up with our growth momentum, we constantly improve our infrastructure
and processes. This includes investments in our IT systems, distribution centres and offices around the world.
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PRODUCT DEVELOPMENT AND DESIGN
Enhancing the excellence of our products is one of PUMA’s strategic priorities. In order to accomplish this,
we will focus on five key measures: authentic sports DNA across all our products, design and innovation
excellence, focus on clear must-win priorities, creating product franchises as a brand, and a global-local
(“glocal”) product creation approach.
┌
As a sports company, PUMA has 75 years of history and sports authenticity, created by writing history
alongside the world’s fastest athletes. All PUMA products will have 100% sports DNA. While we celebrate
the sport roots of our products and rich archive on the non-performance side, we push for new innovations
on the performance side.
└
In addition to the clear sports DNA of our products, we also place a special emphasis on design and
innovation across all our categories. We have a strong pipeline of innovations across all our performance
categories both on the footwear and apparel side. We have the clear ambition to make the fastest products
for the fastest athletes and our innovative technologies such as NITRO™ will ensure that we live up to this
ambition.
┌
Also on the design side, PUMA has a rich history of firsts and bests. We built on our legacy in 2023 by
relaunching the Avanti with global icon Rihanna, a style which is based on the sneaker through which PUMA
revolutionised the category in the 1990s. The Avanti is a perfect example of how we leverage our rich archive
of iconic silhouettes while ensuring cutting-edge and on-trend design in the here and now.
To sharpen our focus, we decided to implement fewer, bigger and better product stories and we defined four
clear must-win priorities that we will focus on: classics, sports culture, our NITRO™ technology and
creating the best product offer for women.
Classics are one of PUMA’s biggest asset, given our rich history and our vast archive, which continues to
inspire our designers today. PUMA was already an established brand when football transformed to terrace,
skate became streetwear and when fashion embraced low profile styles. This means that PUMA has
genuine credibility to respond to the return of such trends.
Through its archive and history, PUMA will continue to incubate new trends, such as low profile, and
capitalise on existing trends such as the prevalent terrace and skate trends.
For PUMA, sports culture is about more than the game, as the influence of sport can be felt long after the
final whistle or the chequered flag. In Football, the terrace trend first started in the football stadiums of the
1980s and made its way into fashion and streetwear.
Basketball also has a direct impact on culture and streetwear, for example when the players make strong
fashion statements on their way into the venue of the game, or when celebrities show of their style as they
sit courtside.
Few players embody this spirit and cultural influence like our ambassador LaMelo Ball, with whom we will
continue to work on his range of signature shoes which blend performance and style.
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In Motorsport, some of the biggest names in sports, film and music regularly attend Formula 1 races and
can be seen in the pits on race weekends. By hosting races across the planet and popular documentaries
featuring the sport, F1’s global viewership has skyrocketed in recent years and the audience has become
more female and diverse, further increasing its influence on culture. With our strong legacy and authenticity
in motorsport, we’re well positioned to capitalise on this growing cultural influence and create relevant F1-
inspired streetwear. We already showcased this approach when we released a bespoke capsule collection
with A$AP Rocky, our creative director for the PUMA X F1 partnership, during the Las Vegas Grand Prix.
NITRO™, one of the best foam technologies in the industry, is at the core of our successful return to
performance running and we will continue to invest significant resources into these performance products.
PUMA has a long-term vision for the running category, with a pipeline of innovations going beyond the next
four or five years.
NITRO™ foam maximizes responsiveness and cushioning while being extremely lightweight, and while it
was created as part of our performance running line up, it is also used in other categories, for example in
basketball.
PUMA has set up state of the art testing facilities in Germany and the US for our elite athletes, called
NITRO™ LAB, which can gather full-body insights to develop bespoke and customised products, so they can
perform at their best.
NITRO™ is used in our award-winning running styles Deviate, Velocity and the latest addition ForeverRun.
With these three styles, we have a clear product proposition for our consumers.
Women have been a priority for PUMA for many years, and we are doubling down on our commitment to
make the best products for her, whether it is female-specific fits for our footwear or other products
specifically catering to the needs of women.
We take her serious throughout our performance categories, for example in football, where following two
years of research, PUMA is the only sports brand to offer all football boots in fits that are specifically
developed for female feet, with a lower volume in the midfoot and a smaller instep compared to unisex
sizes. More than 90% of PUMA’s professional female players choose their boots in women’s specific fits,
which shows the real demand for such products.
└
While PUMA is not afraid to combine performance and non-performance, our goal is not to be a fashion
brand but make sports on trend.
We will continue to create products for her and communicate to our female consumers through campaigns
with our global ambassadors such as Rihanna and Dua Lipa, and Pamela Reif.
Another clear area of product excellence is to create franchises as brands with well-defined consumer
benefits such as Deviate, Velocity and ForeverRun in running, FUTURE, ULTRA, and KING in football as well
as All-Pro and MB in basketball. In non-performance categories, we also see the opportunity to establish
strong product franchises such as Suede, and Palermo on the Classics side or RS-X and Mostro on the
Progressive side. Going forward, we will continue to focus on these key products and ensure a long-term
strategy across all our categories.
We have set up local creation centres in major markets such as the US, Europe, China, India, or Japan so
they can design the products that best resonate with local consumers and we are active in regionally
relevant sports such as cricket, handball, rugby, or netball. We believe that this glocal approach to product
creation combining global Business Units and local creation centres ensures the perfect balance of global
reach and consistency and local relevance of our products.
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Research and product development at PUMA mainly comprise the areas of innovation (new technologies),
product design and model and collection development. The research and product development activities
range from the analysis of scientific studies and customer surveys through the generation of creative ideas
to the implementation of innovations in commercial products. The activities in research and product
development are directly linked to sourcing activities.
As of 31 December 2023, a total of 1,406 people were employed in research and development/ product
management (previous year: 1,307). In 2023, research and development/ product management expenses
totalled € 171.5 million (previous year: € 153.1 million), of which € 89.0 million (previous year: € 82.2 million)
related to research and development.
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SOURCING
THE SOURCING ORGANISATION
PUMA Group’s sourcing functions, referred to as PUMA Group Sourcing (PGS), manages all sourcing related
activities for PUMA and Cobra, including supplier selection, product development, price negotiation and
production control. These activities are centrally managed by PUMA International Trading GmbH (PIT), the
group’s global trading entity, with its head office in the Corporate headquarters in Herzogenaurach
(Germany). In addition, PIT is responsible for procurement and supply into the PUMA distribution channels
worldwide. PIT receives volume forecasts from PUMA subsidiaries and licensees worldwide, translates
these forecasts into production plans which are subsequently distributed to the third-party vendors. The
PUMA subsidiaries confirm their forecasts into purchase orders to PIT, which in turn consolidates these
requirements and purchases from the vendors. There is a clear buy/sell relationship between the sales-
subsidiaries and PIT and between PIT and the vendors, for added transparency.
The centralisation of the sourcing and procurement functions supported by a cloud-based purchase order
management and payment platform has enabled the digitalisation of the supply chain creating
transparency, operational efficiency and reducing complexity. For example, container fill rates are
optimised, foreign currency risks are managed by PIT directly via a centralised currency hedging policy, and
all payments to vendors are automated and paper free.
To meet the needs of our customers in terms of service, quality, social and environmental sustainability, we
focus on six core strategic pillars: partnership, product quality, growth management, margins, acquisition
costs and sustainability. The integration of PUMA's sustainability function into the sourcing organisation
ensures that industry standards, including social, environmental, chemical safety, as well as product
compliance are closely integrated with all our sourcing activities.
Another key aspect in our sourcing setup since 2016 has been the PUMA Forever Better Vendor Financing
Program. The program allows suppliers to be paid earlier. The International Finance Corporation (IFC),
banking group BNP Paribas, HSBC and Standard Chartered offer attractive financing terms to our suppliers,
allowing them to maintain their own lines of credit.
In 2023, no sourcing countries experienced material COVID restrictions. The lifting of restrictions enabled
full normalisation of the supply chain to pre-pandemic levels.
High inflation, fluctuating raw material cost and freight cost impacted the company's operations. In view of
the global macroeconomic situation, which has led to a change in customers' ordering behavior and
increased inventory levels resulted in a need for more cautious procurement from our suppliers. Hence, we
actively adjusted sourcing activities respectively and continued to provide transparency to our sourcing
partners so they can adjust their capacities accordingly. Despite these challenges, we remained committed
to delivering value to our stakeholders and implemented strategies to mitigate the adverse effects of the
prevailing market conditions. Together with sustained demand for PUMA products in 2023 this led to a
further normalisation of PUMA inventory levels, in line with expectations.
Our supplier partners form an integral part of the PUMA business. To recognise our suppliers, we organised
a Supplier Summit in June 2023 at PUMA Headquarters in Herzogenaurach, bringing them together across
all divisions for the first time in over six years. During the Summit, we shared recent and upcoming
business developments and expressed gratitude for their partnership with PUMA.
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THE SOURCING MARKETS
During the financial year 2023, PIT purchased from 158 independent suppliers (previous year: 141) in 29
countries worldwide. The strategic cooperation with long-term partners continues to be one of our key
competitive advantages and was crucial in navigating through ongoing supply chain challenges of 2023.
Asia is the strongest sourcing region overall with 95% of the total volume, followed by the Americas with 3%
and EMEA with 2% (thereof Europe with 1% and Africa with 1%).
As a result, the six most important sourcing countries (94% of the total volume) are all located in the Asian
continent. China is the biggest production country in 2023 with a total of 32%. While the absolute volumes in
China for apparel have decreased, it was further strengthened as a strategic origin for footwear in 2023.
Vietnam – a key development and sourcing hub for all three divisions – is the second biggest production
country with 30%. Cambodia is in third place at 13%, Bangladesh, which focusses on apparel, is in fourth
place at 12%. Indonesia, with an initial focus on footwear production and increasing volumes for apparel,
produces 4% of the total volume and is in fifth place. India – only serving the local market - is in sixth place
at 3%. In the growth market of India, we see ourselves in a good competitive position due to local sourcing
and are therefore also able to limit the impact of the government's protectionist measures on our business.
Rising wage costs, fluctuating material prices, macroeconomic developments and evolving sustainability
regulations, have continued to influence sourcing markets in 2023. Such impacts need to be considered in
allocating the production to ensure a secure, sustainable, and competitive sourcing of products. In this
regard sourcing continues to extend its local supply chain initiatives for markets such as China, India, Latin
America, Türkye and others. Our sourcing activities resumed with business travel to key sourcing markets
in order to visit our existing partners but also evaluate new vendors and opportunities in sourcing countries
such as Indonesia.
↗ G.02 SOURCING REGIONS OF PUMA (in %)
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EMPLOYEES
NUMBER OF EMPLOYEES
The global number of employees on a yearly average was 18,023 in 2023, compared to 16,669 in the previous
year. Personnel expenses increased by a total of 6.4% from € 846.5 million to € 900.6 million in 2023. On
average, personnel expenses per employee amounted to € 50.0 thousand, compared to € 50.8 thousand in
the previous year.
↗ G.03 CHANGES IN EMPLOYEES (annual average / year-end)
As of 31 December 2023, the number of employees was 18,681, compared to 18,071 in the previous year. This
corresponds to an overall increase in the number of employees of 3.4% compared to the previous year. The
development in the number of employees per area is as follows:
↗ G.04 EMPLOYEES (year-end)
13,348
13,016
14,846
16,669
18,023
14,332
14,374
16,125
18,071
18,681
2019
2020
2021
2022
2023
Employees (annual average)
Employees (year-end)
13,343
1,307
3,421
13,647
1,406
3,628
Marketing / retail / sales
Research & development / product
management
Administration and general units
2022
2023
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TALENT RECRUITMENT AND DEVELOPMENT
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Our PUMA family is the key to our success. Our human resources strategy forms the basis of our unique
working environment and corporate culture. These help us to attract the best talent worldwide and secure
the future success of the company. The three core elements of this strategy are "People First", sustainable
human resources practices and digitalisation.
People First means understanding employees' needs, values, and potential and putting them at the centre
of our decision making. It helps us create an inclusive culture that respects diversity, promotes health and
well-being, and encourages personal and professional growth.
Sustainable people practises create a workplace culture that prioritises employee health and happiness,
diversity, and inclusivity, and offers ample opportunities for career growth. Our sustainable people practices
are central to building a resilient organisation. By thinking ahead and equipping our employees with the
future skills and leadership qualities necessary, we ensure the long-term success of PUMA.
Digital tools in Human Resources improve the work experience of our employees and help us stay
competitive and agile in a fast-changing business landscape. By using digital technology, we are improving
efficiency, data-driven decision-making, and candidate and employee experiences. We deploy easy-to-use
digital tools that enhance collaboration and productivity and offer digital literacy programmes to ensure all
employees are equipped to thrive in a digital environment.
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To attract external applicants, we use digital platforms and social media in addition to our careers website
in order to pursue proactive recruitment strategies that are tailored to our specific target groups. Having a
range of on-site and online initiatives at universities both in Germany and abroad creates opportunities to
approach potential employees and identify suitable candidates. Our extensive networks and applicant pools
enable us to fill vacancies quickly. In a competitive labour market, it's essential for us not only to present
ourselves as an attractive employer, but to be viewed as such by our current and potential employees.
PUMA's attractiveness is evidenced by its top rankings as an employer and numerous awards. We are very
proud that 24 of our PUMA subsidiaries across the regions (Europe, APAC, LATAM and North America) won a
coveted Top Employer award in the year under review in recognition of our outstanding corporate culture
and working environment. We can therefore continue to call ourselves a "Global Top Employer". We were
also named one of the "World's Best Employers" by Forbes and a "Leader in Diversity" by the Financial
Times, and awarded the "Great Place to Work" seal in numerous countries.
┌
In 2023 we continued to work on simplifying, accelerating and harmonising our business processes
worldwide, and intensified the digitalisation of our processes. We have been using the "Workday" software
solution for a wide range of HR workflows since 2017. This gives our employees and managers the processes
and tools they need to make everyday human resources management efficient. Furthermore, easy-to-use
dashboards provide managers with important information and data-driven insights that are essential to
their planning work and managerial duties. Analysing our centralised, globally available data provides a
solid foundation for making strategic decisions and delivers measurable results. Our objective is to use this
digitalised infrastructure to increase operational efficiency and continuously improve our HR practices
throughout the employee life cycle at PUMA. This in turn facilitates PUMA's overarching goal of optimising
workflows and employees' experiences. It also gives us the means to deal more effectively with the
dynamics of demanding labour markets.
We empower our employees to shape their own career paths proactively and independently, promoting their
professional development both within Germany and internationally. This is how we succeed in inspiring their
loyalty to the company in the long term. As part of our talent management initiative, we use Workday not
only to assess performance and set targets, but also to make systematic and forward-looking succession
plans for key positions. We identify talent within the company during annual performance reviews and global
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talent conferences, and foster their development through tailored development plans. This approach to
talent management opens up attractive career and development opportunities for our employees. As in the
previous financial year, this year we were again able to fill the majority of key positions worldwide via
internal promotions or horizontal moves, which confirms that our talent management and employee
development strategy is solid.
The ongoing personal and professional development of our employees is crucial to ensuring that our team
has the skills they need to guarantee us continuous growth and market competence, particularly in times of
great uncertainty and change. Workday helps us to avoid skills shortages and maintain a clear overview of
the existing competencies in our team. In 2023 we examined this issue more closely, delving deeper in
particular into the competencies that we will need in the future. The insights we gained from this deep dive
are essential for us in terms of strategic human resources planning. They form the basis for our
recruitment activities and for the development of new training programmes.
The range of training that we provide includes a number of online and offline training courses and
workshops, which are either standardised or tailored to individual needs. With "LinkedIn Learning" and "Good
Habitz", there are now over 23,000 different training courses available for our employees. They also have a
wide range of learning categories to choose from for self-directed personal and professional development.
Like last year, we focused particularly on the topics of mental well-being, resilience and mindfulness this
year, providing our employees with a wide range of services to best support them in dealing with the
increased mental strain that can often arise in this politically and economically difficult environment.
We have a proactive strategy for engaging learners. This includes putting on entertaining activities about
various topics, gamification and internal learning competitions, not to mention the quarterly Top Learner
Award for the most active learners worldwide. Thanks to this approach, PUMA was nominated for the
"eLearning Journal" Award 2024 in the "Learner Engagement" category. We further expanded the Digital
Agile Coach programmes that we offer to various target groups.
We have a global Busuu licence that provides access to 13 languages. This enables all our employees,
including retail staff, to learn new languages online in a flexible way that meets their needs. They are
supported by live lessons with qualified trainers. Learning is undertaken both via an app and in direct
contact with others. There is a particular focus on English, but Busuu also facilitates the learning of other
languages for personal or professional purposes.
With a range of dual-study programmes and apprenticeships, as well as study-related internships, we offer
adequate entry-level and development opportunities for talented individuals at all levels.
We offer our managers numerous training and development opportunities. All managers worldwide
complete our internal global leadership training programme, consisting of the ILP (International Leadership
Programme) and ILP² seminar series. The programme ensures a uniform understanding of leadership at
PUMA and promotes development among participants over the longer term. It offers intensive training and
coaching, including interactive learning, role play simulations, and best practice learning, as well as joint
projects. The key topics include coaching, mindful leadership, and agile working methods. The PUMA
Leadership Expedition training programme aims to empower our managers to lead effectively in the VUCA
world (VUCA is an acronym for volatile, uncertain, complex, and ambivalent). The programme is completely
virtual, easily accessible, and designed as a self-directed and tailor-made learning format. It includes self-
selected virtual training sessions with a trainer, regular communication with other international
participants in smaller working groups, and coached sessions, as well as individual learning sprints and
check-ins with the trainers. This innovative training programme received the eLearning AWARD 2023 in the
"Agile Learning" category.
Our training from employee to manager is intended to prepare employees who are taking on a management
position for the first time specifically for their new role. In addition to the training module, the programme
also offers individual coaching.
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Our "Speed Up" and "Speed Up²" development programmes are aimed at employees across different levels
of the organisation. These programmes help to fully prepare employees for the next stage of their career,
covering interdisciplinary projects and deployments, targeted training, mentoring, coaching and job
rotations. They are designed to actively promote selected top talent. Another essential aspect of these
programmes is increasing the visibility of participants through to the highest level of management,
promoting multi-disciplinary cooperation and developing a strong professional network.
Feedback from our employees is of the utmost importance to us. Our listening strategy comprises various
methods of receiving feedback and aims to capture and understand the opinions and needs of our workforce.
To gather their views and suggestions, we prepare questionnaires, regular short surveys, focus groups,
interviews and mood analyses, often using systems such as Amber and Workday. The resulting feedback
affirms our commitment to continuing and further developing the initiatives that have been launched.
Since 2009 we have been conducting regular global employee surveys to obtain feedback from our staff on a
variety of topics and to measure their engagement. A total of 15,339 employees took part in the global survey
we carried out in 2023 and took the opportunity to tell us what they think about their workplace and their
day-to-day work. This equates to a participation rate of 85% (2021: 86%). We saw an increase in positive
ratings in two categories. Four categories remained at their already high level and seven categories saw a
slight decline of 1% compared to the previous survey. We compare our survey results with various sets of
market data, including high-performance data that we surpass or are equal to in up to four categories.
High-performing companies are those that outperform the market in financial terms and regularly achieve
excellent employee survey results. This positive feedback encourages us to continue and strengthen the
measures we have already introduced. The survey results were communicated at global, local and
departmental level, and follow-up measures were defined.
WORKS COUNCIL
Our trust-based, constructive collaboration with the Works Councils is an important part of our corporate
culture. In 2023, the European Works Council of PUMA SE represented employees from 14 European
countries and had 18 members. The German Works Council of PUMA SE consisted of 17 members and
represented the employees of the PUMA Group in Germany. A designated member of the Works Council in
Germany represents the interests of employees with disabilities.
COMPENSATION
We at PUMA offer our employees a targeted and competitive compensation system, which consists of
several components. In addition to a fixed base salary, the PUMA bonus system, profit-sharing programmes,
and various social benefits form part of an attractive and performance-based compensation system. In
addition, we offer our employees comprehensive services in the areas of further development, employee
motivation, health management, and well-being. We also offer long-term incentive programmes for the
senior management level that honour the sustainable development and performance of the business. The
bonus system is transparent and globally standardised. Incentives are exclusively linked to company goals.
└
MANAGEMENT SYSTEM
We use a variety of indicators to manage our performance in relation to our top corporate goals. We have
defined growth and profitability as key targets within finance-related areas. Our focus therefore is on
improving our sales and operating result (EBIT). These are the most significant financial performance
indicators. Moreover, we aim to minimise working capital and improve free cash flow. Our Group's Planning
and Management System has been designed to provide a variety of instruments in order to assess current
business developments and derive future strategy and investment decisions. This involves the continuous
monitoring of key financial indicators within the PUMA Group and a monthly comparison with budget
targets. Any deviations from the targets are analysed in detail and appropriate countermeasures are taken
in the event such deviations have a negative impact.
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Changes in sales are also influenced by currency exchange effects. This is why we also state any changes
in sales in euros, the reporting currency, adjusted for currency exchange effects in order to provide
information that is relevant to the decision-making process when assessing the revenue position. Currency-
adjusted sales are used for comparison purposes and are based on the values that would arise if the foreign
currencies included in the consolidated financial statements were not converted at the average rates for the
previous year, but were instead translated at the corresponding average rates for the current year. In the
case of countries that are in a hyperinflationary environment, the previous year's amounts are not converted
at the reporting date rates of the previous year, but at those of the current reporting year. As a result,
currency-adjusted figures are not to be regarded as a substitute or as superior financial indicators, but
should instead always be regarded as additional information.
We use the indicator free cash flow in order to determine the change in cash and cash equivalents after
deducting all expenses incurred to maintain or expand the organic business of the PUMA Group. Free cash
flow is calculated from the cash flow from operating activities and investment activities. We also use the
indicator free cash flow before acquisitions, which goes beyond free cash flow and includes an adjustment
for incoming and outgoing payments that are associated with shareholdings.
We use the indicator working capital in order to assess the financial position. Working capital is essentially
the difference between current assets – including in particular inventories and trade receivables – and
current liabilities. Cash and cash equivalents, the positive and negative market values of derivative financial
instruments and current finance and lease liabilities are not included in working capital.
Besides the above mentioned significant indicators, sustainability and creating stakeholder value is an
important aspect of PUMA’s overall business performance. Acting in a responsible manner and continuously
improving PUMAs impacts on the environment and people are not only expected by our employees,
consumers and investors but also supports our financial performance. Since many years, and in line with
our current 10FOR25 sustainability strategy, we use several indicators to assess PUMA’s performance
against environmental and social criteria. Those indicators relate to climate action, human rights (including
occupational health and safety) as well as circularity and are part of the performance bonus of our
leadership team globally. Since a large portion of PUMAs impact on the environment and people is created
in our supply chain, we also include supply chain specific sustainability performance indicators in our
annual reporting. For further details, please refer to the sustainability section of this report and our
corporate website.
The calculation of the financial control parameters that PUMA uses is defined as follows:
The recognition of sales is based on the provisions of IFRS 15 Revenue from contracts with customers.
PUMA's gross profit is calculated as sales minus cost of sales. Cost of sales mainly comprise the carrying
amounts of inventory that were recognised as expenses during the reporting period. The gross profit margin
is calculated as gross profit divided by sales.
PUMA's operating result (EBIT) is the sum of sales and royalty and commission income, minus cost of sales
and other operating income and expenses (OPEX). EBIT is defined as operating result, less depreciation and
amortisation, provisions and impairment loss, before interest (= financial result) and before taxes. The
financial result includes interest income and interest expenses, currency conversion differences and the
effects from the net position of monetary items in connection with hyperinflation accounting. The EBIT
margin is calculated as EBIT divided by sales.
PUMA's working capital is calculated based on the sum of current assets less the sum of current liabilities.
In addition, cash and cash equivalents and positive and negative market values of derivative financial
instruments are deducted. The market values of derivative financial instruments are recognised in the
balance sheet in the items Other Current Assets and Other Current Liabilities not attributable to working
capital. Current financial and lease liabilities are also not part of working capital.
PUMA Annual Report 2023
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227
We also use the EBITDA indicator, which represents the operating result before interest (= financial result),
taxes and depreciation and amortisation, to assess the results of operations. EBITDA is calculated based on
the operating result (EBIT) adding depreciation and amortisation, which may also contain any incurred im-
pairment expenses relating to non-current assets. The EBITDA margin is calculated as EBITDA divided by
sales.
INFORMATION REGARDING THE NON-FINANCIAL REPORT
In accordance with Sections 289b and 315b of the German Commercial Code (Handelsgesetzbuch – HGB),
we are required to make a non-financial declaration for PUMA SE and the PUMA Group within the combined
management report or present a non-financial report external to the combined management report, in
which we report on environmental, social and other non-financial aspects. PUMA has been publishing
sustainability reports since 2003 under the provisions of the Global Reporting Initiative (GRI) and since 2010
has published financial data and key sustainability indicators in a single report. In this context, we report the
information required under Sections 289b and 315b of the HGB in the sustainability chapter of our annual
report. The non-financial report for the financial year 2023 is published together with the combined
management report and can be accessed at the following location on our website:
https://about.PUMA.com/en/investor-relations/financial-reports
┌
Furthermore, important sustainability information can always be found in the sustainability section on
PUMA's website: http://about.PUMA.com/en/sustainability
└
PUMA Annual Report 2023
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228
ECONOMIC REPORT
GENERAL ECONOMIC CONDITIONS
GLOBAL ECONOMY
According to the winter forecast of the Kiel Institute for the World Economy (Kiel Institut für Weltwirtschaft –
IfW Kiel) dated 13 December 2023, the global economy held up better than expected in view of the inflation
shock and the massive tightening of monetary policy in 2023, even if economic expansion was only
moderate. Industrial production and world trade remained without momentum until the end of the year. The
experts at IfW Kiel expect global gross domestic product (GDP) to have risen by a total of 3.1% for the past
financial year 2023. Major differences in economic momentum were recorded both in the advanced
economies and in the emerging markets. With regard to China, IfW Kiel experts note that, by historical
comparison, the pace of expansion is still low and that China has largely lost its role as the engine of global
economic expansion. In addition, accelerated inflation in Argentina and Turkey had a negative impact on
economic development.
SPORTING GOODS INDUSTRY
The sporting goods industry was faced with various challenges in 2023, which contributed to a difficult
market environment. This was mainly due to the sharp rise in inflation, which led to a corresponding
negative impact on consumer spending. In addition, excess inventory and sales-promoting measures were
unfavourable to industry development.
Major sporting events in 2023, such as the Athletics World Championships in Hungary and the FIFA Women's
World Cup in Australia and New Zealand, had a positive effect on the sporting goods industry. To our
knowledge, sporting activity and the pursuit of an increasingly healthy and sustainable lifestyle continued to
gain in importance for an ever-increasing proportion of the world's population, following the COVID-19
pandemic. Among other things, this resulted in the increased popularity of athletic footwear and
leisure/athletic apparel as an integral part of everyday fashion ("athleisure").
PUMA Annual Report 2023
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229
SALES DEVELOPMENT
ILLUSTRATION OF SALES DEVELOPMENT IN 2023 COMPARED TO THE OUTLOOK
In its combined management report for 2022, PUMA forecast a currency-adjusted increase in sales in the
high single-digit percentage range for financial year 2023. Sales development was affected by the significant
devaluation of the Argentine peso and the associated translation effects at the closing rate, which had an
extraordinary impact in the fourth quarter and on the full-year 2023. Due to the extent and timing of these
currency effects, we were unable to fully compensate for the overall negative impact at the end of the year.
Nevertheless, sales development was largely in line with the outlook. More details on sales development in
the financial year 2023 are provided below.
SALES
PUMA's sales in the reporting currency, the euro, increased by 1.6% to € 8,601.7 million in the financial year
2023 (previous year: € 8,465.1 million). Currency-adjusted sales increased by 6.6%. This allowed PUMA to
achieve record sales of € 8.6 billion in 2023, the year of the 75th anniversary of the company, despite the
difficult market environment.
↗ G.05 SALES (€ million)
In the footwear division, sales increased in the reporting currency, the euro, by 6.1% to € 4,583.4 million.
Currency-adjusted sales increased by 12.4%. The footwear division continued to be the growth driver and the
strongest growth was achieved in the Sportstyle, Teamsport and Basketball categories. The share of the
footwear division in total sales rose from 51.0% in the previous year to 53.3% in 2023.
Sales in the apparel division fell by 4.6% to € 2,763.0 million in the reporting currency, the euro. Adjusted for
currency effects, sales fell only slightly by 0.3%. Higher sales in the categories Teamsport and Running &
Training were compared to lower sales in the Sportstyle and Motorsport categories. The share of the
apparel division decreased to 32.1% of Group sales (previous year: 34.2%).
The accessories division reported an increase in sales in the reporting currency, the euro, of 0.3% to
€ 1,255.3 million. This corresponds to a currency-adjusted sales growth of 3.1%. The growth in the
Teamsport category was partly offset by slightly lower sales with Cobra golf clubs. In 2023, the share of the
accessories division decreased to 14.6% of Group sales from 14.8% in the previous year.
5,502.2
5,234.4
6,805.4
8,465.1
8,601.7
2019
2020
2021
2022
2023
PUMA Annual Report 2023
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230
↗ G.06 SALES BY PRODUCT DIVISIONS (€ million)
OWN RETAIL ACTIVITIES
PUMA's own retail activities include direct sales to our consumers ("Direct-to-consumer business"). This
includes selling to our customers in PUMA's own retail stores, the so-called "Full Price Stores" and
"Factory Outlets". Our e-commerce business on our own online platforms and on the platforms of online
retailers, which we refer to as "marketplaces", is also part of the direct sales to our consumers. Our own
retail businesses ensure regional availability of PUMA products and the presentation of the PUMA brand in
an environment suitable to our brand positioning.
PUMA's direct-to-consumer sales increased by 17.5% currency-adjusted to € 2,133.0 million in the financial
year 2023. This corresponds to a share of 24.8% of total sales (previous year: 23.1%). Adjusted for currency
effects, sales in PUMA's own full-price stores and factory outlets increased by 18.8% in 2023. In the e-
commerce business, sales increased by 15.0% in 2023, adjusted for currency effects. The continued strong
sales growth in our DTC business was due to continued brand desirability, the opening of own retail stores
and their increase in productivity.
↗ G.07 DIRECT-TO-CONSUMER SALES
881.1
892.7
1,124.5
1,251.0
1,255.3
2,068.7
1,974.1
2,517.3
2,896.3
2,763.0
2,552.5
2,367.6
3,163.6
4,317.9
4,583.4
2019
2020
2021
2022
2023
Accessories
Apparel
Footwear
1,395.3
1,424.5
1,724.8
1,951.4
2,133.0
25.4%
27.2%
25.3%
23.1%
24.8%
2019
2020
2021
2022
2023
Direct-to-consumer sales in € million
in % of sales
PUMA Annual Report 2023
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231
LICENSING BUSINESS
PUMA grants licenses to independent partners for various product divisions, such as watches, glasses,
safety shoes, workwear and gaming accessories. In addition to design, development and manufacture, these
companies are also responsible for product distribution. Income from license agreements also includes
some distribution licenses for different markets. PUMA's royalty and commission income increased by
14.0% to € 38.5 million in the financial year 2023 (previous year: € 33.8 million). The main reason for the
increase was the granting of new licences in the golf and accessories segment.
REGIONAL DEVELOPMENT
In the following explanation of the regional development of sales, the sales are allocated to the customers'
actual region ("customer site"). It is divided into three geographical regions (EMEA, Americas and
Asia/Pacific).
PUMA's sales in the reporting currency, the euro, increased by 1.6% in the financial year 2023. This
corresponds to a currency-adjusted sales increase of 6.6% compared to the previous year. This currency-
adjusted growth resulted in particular from good sales performance in the EMEA and Asia/Pacific regions,
which both achieved double-digit growth rates. In contrast, the Americas region recorded a slight decrease
in sales.
In the EMEA region, sales in the reporting currency, the euro, rose by 9.8% to € 3,418.4 million. Adjusted for
currency effects, this corresponds to an increase in sales of 13.4%. Almost all countries in the region, with
the exception of Great Britain and Sweden, contributed to this development with sales growth. Particularly
strong growth came from Germany, Spain, Italy and Turkey. In terms of Group sales, the EMEA region's
share rose from 36.8% in the previous year to 39.7% in 2023.
With regard to product divisions, sales from footwear recorded a currency-adjusted increase of 21.7%.
Currency-adjusted sales of apparel increased by 8.2%. Currency-adjusted sales of accessories rose by 2.5%.
↗ G.08 EMEA SALES (€ million)
2,001.4
1,982.9
2,531.7
3,113.8
3,418.4
2019
2020
2021
2022
2023
PUMA Annual Report 2023
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232
In the Americas region, sales in the reporting currency, the euro, decreased by 8.0% to € 3,389.9 million. The
decline in sales in the reporting currency was impacted by negative exchange rate effects due to the strong
devaluation of the Argentine peso against the euro. Currency-adjusted sales decreased by 2.4%. The
currency-adjusted sales decline was mainly due to a difficult macroeconomic environment, high inventory
levels in the trade and PUMA's relative dependence on the off-price wholesale business in the USA. The
Americas region's share of Group sales decreased from 43.5% in the previous year to 39.4% in 2023.
In terms of product divisions, both footwear (+1.5% currency-adjusted) and accessories (+4.8% currency-
adjusted) recorded sales growth compared to the previous year. In contrast, currency-adjusted sales in the
apparel division fell by 13.3%.
↗ G.09 AMERICAS SALES (€ million)
In the Asia/Pacific region, sales in the reporting currency, the euro, rose by 7.7% to € 1,793.4 million. Adjusted
for currency effects, this corresponds to an increase in sales of 13.6%. While China, India and Singapore,
among others, recorded double-digit sales growth, sales declined in South Korea and Australia. The share of
the Asia/Pacific region in Group sales increased from 19.7% in the previous year to 20.8% in 2023.
In terms of product divisions, both footwear (+22.6% currency-adjusted) and apparel (+5.9% currency-
adjusted) recorded sales growth compared to the previous year. In contrast, currency-adjusted sales in the
accessories division fell by 1.4%.
↗ G.10 ASIA/PACIFIC SALES (€ million)
1,944.0
1,775.2
2,636.9
3,685.9
3,389.9
2019
2020
2021
2022
2023
1,556.9
1,476.3
1,636.8
1,665.3
1,793.4
2019
2020
2021
2022
2023
PUMA Annual Report 2023
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233
RESULTS OF OPERATIONS
↗ T.01 INCOME STATEMENT
2023
2022
€ million
%
€ million
%
+/-%
Sales
8,601.7
100.0%
8,465.1
100.0%
1.6%
Cost of sales
-4,615.1
-53.7%
-4,562.3
-53.9%
1.2%
Gross profit
3,986.6
46.3%
3,902.7
46.1%
2.1%
Royalty and commission income
38.5
0.4%
33.8
0.4%
14.0%
Other operating income and expenses
-3,403.5
-39.6%
-3,295.9
-38.9%
3.3%
Operating Result (EBIT)
621.6
7.2%
640.6
7.6%
-3.0%
Financial result
-143.3
-1.7%
-88.9
-1.1%
61.2%
Earnings before taxes (EBT)
478.3
5.6%
551.7
6.5%
-13.3%
Taxes on income
-117.8
-1.4%
-127.4
-1.5%
-7.5%
- Tax rate
24.6%
23.1%
Net income attributable to non-controlling
interests
-55.7
-0.6%
-70.9
-0.8%
-21.4%
Net income
304.9
3.5%
353.5
4.2%
-13.7%
Weighted average number of outstanding
shares (million shares)
149.85
149.65
0.1%
Weighted average number of outstanding
shares, diluted (million shares)
149.87
149.66
0.1%
Earnings per share (€)
2.03
2.36
-14.0%
Earnings per share (€) - diluted
2.03
2.36
-14.0%
PUMA Annual Report 2023
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234
ILLUSTRATION OF EARNINGS DEVELOPMENT IN 2023 COMPARED TO THE OUTLOOK
In the outlook in the combined management report for 2022, PUMA forecast an operating result (EBIT) in the
range between € 590 million and € 670 million for the financial year 2023 (2022: € 641 million). Thanks to
continued strong brand momentum, exciting product launches, strong partnerships along the value chain,
and supported by our operational flexibility, PUMA was able to fully achieve its forecast for operating result
for the full-year 2023, despite the significant devaluation of the Argentine peso.
More details on earnings development in the financial year under review are provided below.
GROSS PROFIT MARGIN
PUMA's gross profit in the financial year 2023 increased by 2.1% from € 3,902.7 million to € 3,986.6 million.
The gross profit margin improved by 20 basis points from 46.1% to 46.3%. The increase was due to price
adjustments, a more favourable regional and distribution channel mix, and positive currency effects. In
contrast, a discount-intensive market environment with higher sales-promoting measures, fluctuating
sourcing prices due to raw materials and fluctuating freight costs had a negative effect.
The gross profit margin in the footwear division improved from 44.9% in the previous year to 45.4% in 2023.
The gross profit margin for apparel increased from 47.3% to 47.8%. In contrast, the gross profit margin for
accessories fell from 47.4% to 46.6%.
↗ G.11 GROSS PROFIT/GROSS PROFIT MARGIN
2,686.4
2,458.0
3,257.8
3,902.7
3,986.6
48.8%
47.0%
47.9%
46.1%
46.3%
2019
2020
2021
2022
2023
Gross profit in € million
Gross profit margin in %
PUMA Annual Report 2023
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235
OTHER OPERATING INCOME AND EXPENSES
The net expense of other operating income and expenses (OPEX) increased by 3.3% in financial year 2023 to
€ 3,403.5 million (from € 3,295.9 million in the previous year). The increase is due to sales-related
distribution and other variable costs, the strong growth in our DTC sales channel and higher marketing
investments. This development was partially offset by operational leverage in other cost areas and
favourable exchange rate effects. The cost ratio increased from 38.9% in the previous year to 39.6% in 2023.
↗ G.12 OPERATING EXPENSES (as a % of sales)
Within selling expenses, marketing/retail expenses increased by 4.1% to € 1,643.2 million, while the cost
ratio was 19.1% of sales in 2023, compared with a cost ratio of 18.6% in the previous year. Other selling
expenses, which mainly include sales-related costs and costs for warehousing and logistics, increased by
5.2% to € 1,155.8 million. The cost ratio of other selling expenses decreased to 13.4% of sales in 2023
compared to a cost ratio of 13.0% in the previous year.
Research and development/product management expenses increased by 12.0% to € 171.5 million compared
to the previous year and the cost ratio rose slightly to 2.0%. Other operating income amounted to
€ 17.8 million in the past financial year and essentially includes income from the sale of fixed assets and
income from the disposal of finance leases. General and administrative expenses fell by 3.2% to
€ 450.9 million in 2023. The cost ratio of general and administrative expenses improved to 5.2% of sales in
2023. Depreciation and amortisation is included in the relevant costs and total € 351.7 million (previous year:
€ 332.8 million). In addition, the respective costs include impairment expenses totalling € 5.7 million and
corresponding reversals of impairment losses in the amount of € 11.9 million.
41.3%
43.3%
40.0%
38.9%
39.6%
2019
2020
2021
2022
2023
PUMA Annual Report 2023
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236
RESULT BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTISATION (EBITDA)
The result before interest (= financial result), taxes, depreciation and amortisation (including impairment
losses and reversals of impairment losses) (EBITDA) decreased by 3.2% to € 967.1 million in financial year
2023 (from € 999.3 million in the previous year). The EBITDA margin decreased from 11.8% in the previous
year to 11.2% in 2023.
OPERATING RESULT (EBIT)
In the 2023 financial year, operating result decreased by 3.0% to € 621.6 million (from € 640.6 million in the
previous year). Despite higher sales and an improved gross profit margin, the slightly stronger increase in
other operating income and expenses in comparison with sales led to this decline. The EBIT margin
decreased from 7.6% in the previous year to 7.2% in 2023.
↗ G.13 OPERATING RESULT
FINANCIAL RESULT
The financial result in 2023 decreased from a total of € -88.9 million in the previous year to € -143.3 million.
This development is mainly due to the sharp increase in expenses from currency conversion differences
totalling € -69.4 million in 2023, compared to just € - 2.2 million in the previous year, and also includes
valuation losses in connection with the devaluation of the Argentine peso. The increase in interest expenses
in 2023 to a total of € -100.8 million (previous year: € - 54.4 million) also contributed significantly to this
development. In contrast, interest income increased to a total of € 37.8 million in 2023 (previous year:
€ 32.3 million) and expenses from hyperinflation effects fell to € - 23.7 million (previous year:
€ - 27.8 million). The remaining other financial income and expenses, which in particular include interest
components in connection with forward exchange contracts ("swap points"), improved to € 12.8 million
compared to € - 36.8 million in the previous year.
EARNINGS BEFORE TAXES (EBT)
In the financial year 2023, PUMA generated earnings before taxes of € 478.3 million. This corresponds to a
decrease of 13.3% compared to the previous year (€ 551.7 million). Tax expenses decreased to € 117.8 million,
compared to € 127.4 million in the previous year. Accordingly, the tax rate rose from 23.1% to 24.6% in 2023.
440.2
209.2
557.1
640.6
621.6
8.0%
4.0%
8.2%
7.6%
7.2%
2019
2020
2021
2022
2023
Operating result in € million
as a % of sales
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237
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
Net earnings attributable to non-controlling interests relate to companies in the North American market, in
each of which the same shareholder holds a minority stake. The earnings attributable to these interests
decreased by 21.4% to € 55.7 million in the financial year 2023 (previous year: € 70.9 million). The companies
affected are PUMA United North America LLC, PUMA United Aviation North America LLC, PUMA United
Canada ULC and Janed Canada LLC. The business purpose of these companies is mainly the sale of socks,
bodywear, accessories and children's apparel in the North American market.
CONSOLIDATED NET INCOME
Consolidated net income decreased by 13.7% in financial year 2023 to € 304.9 million (from € 353.5 million).
Despite higher sales and an improved gross profit margin, the slightly stronger increase in other operating
income and expenses compared to sales and the declining financial result led to this development.
Earnings per share and diluted earnings per share decreased from € 2.36 in the previous year to € 2.03 in
the financial year 2023, in line with the development of the consolidated net income.
DEVELOPMENT OF THE SEGMENTS
Internal management of the PUMA Group is carried out across seven segments (Europe, EEMEA, North
America, Latin America, Greater China, Asia/Pacific (excluding Greater China) and stichd), based on the
registered office of the respective subsidiaries. The differences from the presented regional development of
sales are essentially down to the separated "stichd" segment and India and Southeast Asia, which are
allocated to the EEMEA segment.
The operating segments developed in line with the trends already discussed. Exceptions were the EEMEA
segment, which showed double-digit growth rates due to the comparatively strong growth of sales and
operating result in several countries and especially in Turkey. In the North America segment, the difficult
macroeconomic environment, high inventory levels in the trade and the relative dependence on wholesale
business in the off-price segment led to a decline in sales and operating result. In the Latin America
segment, operating result was only at the previous year's level, despite double-digit sales growth in Mexico,
Chile and Brazil. This was mainly due to the negative currency exchange effects resulting from the sharp
devaluation of the Argentine peso, which had a strong impact on profitability in the Latin America segment.
In the Greater China segment, double-digit sales growth and a significant improvement in operating result
were achieved due to the continued recovery and re-opening of the market. The stichd segment recorded a
decline in operating result due to start-up costs in the Formula 1 business and due to expenses in
connection with the implementation of SAP in 2023.
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238
DIVIDENDS
The positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose
the distribution of a dividend of € 0.82 per share for the financial year 2023 at the Annual General Meeting on
22 May 2024. This corresponds to a payout ratio of 40.3% of consolidated net income. The higher payout ratio
results from the strong improvement in free cash flow and reflects the underlying positive operating
business development. In general, PUMA's dividend policy continues to provide for a payout of 25% to 35% of
consolidated net income. The payment of the dividend is to take place in the days after the Annual General
Meeting at which the decision is made on the payout. In the previous year, a dividend of € 0.82 per share was
paid out (payout ratio for previous year: 34.7%).
↗ G.14 EARNINGS/DIVIDEND PER SHARE (in €)
1.76
0.53
2.07
2.36
2.03
0.00
0.16
0.72
0.82
0.82
2019
2020
2021
2022
2023
Earnings per share
Dividend per share
PUMA Annual Report 2023
↗ Combined Management Report
239
NET ASSETS AND FINANCIAL POSITION
↗ T.02 BALANCE SHEET
31 Dec. 2023
31 Dec. 2022
€ million
%
€ million
%
+/-%
Cash and cash equivalents
552.9
8.3%
463.1
6.8%
19.4%
Inventories *
1,804.4
27.2%
2,245.1
33.1%
-19.6%
Trade receivables *
1,118.4
16.8%
1,064.9
15.7%
5.0%
Other current assets *
385.6
5.8%
304.1
4.5%
26.8%
Other current assets
69.8
1.1%
123.2
1.8%
-43.4%
Current assets
3,931.1
59.2%
4,200.4
62.0%
-6.4%
Deferred tax assets
296.1
4.5%
295.0
4.4%
0.3%
Right-of-use assets
1,087.7
16.4%
1,111.3
16.4%
-2.1%
Other non-current assets
1,325.6
20.0%
1,166.0
17.2%
13.7%
Non-current assets
2,709.3
40.8%
2,572.3
38.0%
5.3%
Total assets
6,640.4
100.0%
6,772.7
100.0%
-2.0%
Current borrowings
145.9
2.2%
75.9
1.1%
92.3%
Trade payables *
1,499.8
22.6%
1,734.9
25.6%
-13.6%
Other current liabilities *
631.3
9.5%
792.3
11.7%
-20.3%
Current lease liabilities
212.4
3.2%
200.2
3.0%
6.1%
Other current liabilities
47.7
0.7%
39.7
0.6%
20.1%
Current liabilities
2,537.2
38.2%
2,843.0
42.0%
-10.8%
Non-current borrowings
426.1
6.4%
251.5
3.7%
69.4%
Deferred tax liabilities
12.4
0.2%
42.0
0.6%
-70.5%
Pension provisions
22.5
0.3%
22.4
0.3%
0.7%
Non-current lease liabilities
1,020.0
15.4%
1,030.3
15.2%
-1.0%
Other non-current liabilities
40.0
0.6%
44.7
0.7%
-10.5%
Non-current liabilities
1,520.9
22.9%
1,390.9
20.5%
9.4%
Equity
2,582.3
38.9%
2,538.8
37.5%
1.7%
Total liabilities and equity
6,640.4
100.0%
6,772.7
100.0%
-2.0%
Working Capital
1,177.3
1,086.8
8.3%
- in % of sales
13.7%
12.8%
* included in working capital
PUMA Annual Report 2023
↗ Combined Management Report
240
EQUITY RATIO
PUMA has a very solid capital base. As of the balance sheet date, the equity of the PUMA Group increased by
1.7%, from € 2,538.8 million in the previous year to € 2,582.3 million as of 31 December 2023. Although the
positive consolidated income contributed to the increase in Group equity, there was a negative impact of
€ - 85.9 million from the other comprehensive income that is directly recorded in equity, mainly due to
negative currency conversion differences. The balance sheet total decreased slightly by 2.0% as at the
balance sheet date, to € 6,640.4 million (from € 6,772.7 million in the previous year). Overall, this resulted in
an increase in the equity ratio of 1.4 percentage points from 37.5% in the previous year to 38.9% as at
31 December 2023.
↗ G.15 BALANCE SHEET TOTAL/EQUITY RATIO
WORKING CAPITAL
As of the balance sheet date, working capital increased by 8.3% from € 1,086.8 million in the previous year to
€ 1,177.3 million as of 31 December 2023. In relation to sales in the respective financial year, this corresponds
to an increase in the working capital ratio from 12.8% in the previous year to 13.7% at the end of 2023. This
development was mainly attributable to the decline of trade payables due to the adjusted sourcing volumes
in 2023 and the decrease in other current liabilities and provisions included in working capital. In addition,
higher trade receivables and higher other current assets attributable to working capital contributed to the
increase. In contrast, the reduction in inventories had the opposite effect.
On the assets side, inventories fell by 19.6% as at the balance sheet date, to € 1,804.4 million (from
€ 2,245.1 million). This development shows that our previous measures to reduce inventories to an
appropriate level were successful. Trade receivables increased due to longer customary payment terms by
5.0% to € 1,118.4 million (from € 1,064.9 million) as at the balance sheet date. Other current assets, which are
attributable to working capital rose by 26.8% to € 385.6 million (from € 304.1 million), primarily due to higher
advance payments and tax refund claims.
On the liabilities side, trade payables decreased by 13.6% to € 1,499.8 million (from € 1,734.9 million) due to
the adjusted sourcing volumes. The other current liabilities and provisions, which are contained in working
capital and include, among other things, customer bonus and warranty provisions, decreased by 20.3% to
€ 631.3 million (from € 792.3 million).
4,378.2
4,684.1
5,728.3
6,772.7
6,640.4
43.9%
37.7%
39.8%
37.5%
38.9%
2019
2020
2021
2022
2023
Total assets in € million
Equity ratio in %
PUMA Annual Report 2023
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241
↗ G.16 WORKING CAPITAL
OTHER ASSETS AND OTHER LIABILITIES
Other current assets outside of working capital include, in particular, the positive market value of derivative
financial instruments and current receivables from leases. Overall, other current assets outside of working
capital decreased to € 69.8 million, compared to € 123.3 million in the previous year.
Right-of-use assets fell slightly by 2.1% to € 1,087.7 million (from € 1,111.3 million in the previous year). The
decline was due to the ongoing depreciation of right-of-use assets and the effects of subleasing. In contrast,
the additions to right-of-use assets in 2023 were mainly related to newly opened retail stores and extensions
or contract amendments to existing retail stores as well as the opening of new warehouses or the expansion
of existing warehouses. The right-of-use assets referred to own retail stores totalling € 464.2 million
(previous year: € 430.9 million), warehouses and offices totalling € 557.7 million (previous year:
€ 613.1 million) and other lease items, mainly technical equipment and machines and motor vehicles,
totalling € 65.7 million as of 31 December 2023 (previous year: € 67.3 million). The associated current and
non-current leasing liabilities remained virtually unchanged overall.
Other non-current assets, which mainly comprise intangible assets and property, plant and equipment,
increased by 13.7% to € 1,325.6 million (from € 1,166.0 million) in the past financial year. The increase is
linked to the expansion of investment activities in 2023, following lower investments in non-current assets in
previous years. In addition, the acquisition of investment property totaling € 21.1 million contributed to the
increase.
As at 31 December 2023, current borrowings include the current proportion of promissory note loans in the
amount of € 125.0 million (previous year: € 60.0 million) and short-term bank liabilities amounting to
€ 20.9 million (previous year: € 15.9 million).
Other current liabilities, which exclusively include the negative market value of derivative financial
instruments, increased from € 39.7 million to € 47.7 million compared to the previous year.
Non-current borrowings include promissory note loans totalling € 426.1 million (previous year:
€ 251.5 million).
Pension provisions remained almost unchanged at € 22.5 million (previous year: € 22.4 million).
549.4
465.8
727.9
1,086.8
1,177.3
10.0%
8.9%
10.7%
12.8%
13.7%
2019
2020
2021
2022
2023
Working capital in € million
Working capital as a % of sales
PUMA Annual Report 2023
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242
Other non-current liabilities amounted to € 40.0 million as at the balance sheet date (previous year:
€ 44.7 million).
CASH FLOW
↗ T.03 CASH FLOW STATEMENT
1-12/2023
1-12/2022
€ million
€ million
+/-%
Earnings before taxes (EBT)
478.3
551.7
-13.3%
Financial result and non-cash effected expenses and income
485.7
367.2
32.3%
Gross cash flow
964.1
918.9
4.9%
Change in current assets, net
-129.2
-343.3
-62.4%
Payments for taxes on income
-181.3
-157.4
15.2%
Net cash from operating activities
653.6
418.3
56.3%
Payments for investing in fixed assets
-300.4
-263.6
13.9%
Other investing and divestment activities incl. interest received
15.8
22.9
-31.1%
Net cash used in investing activities
-284.6
-240.8
18.2%
Free cash flow
369.0
177.5
107.9%
Free cash flow (before acquisitions)
369.0
177.5
107.9%
Dividend payments to shareholders of PUMA SE
-122.8
-107.7
14.0%
Dividend payments to non-controlling interests
-92.4
-73.3
26.2%
Proceeds from borrowings
299.6
17.9
1571.2%
Cash repayments of borrowings
-59.1
-69.5
-14.9%
Repayments of lease liabilities
-208.0
-190.0
9.4%
Interest paid
-94.3
-53.8
75.3%
Net cash used in financing activities
-277.1
-476.4
-41.8%
Exchange rate-related changes in cash and cash equivalents
-2.1
4.4
-146.8%
Changes in cash and cash equivalents
89.8
-294.4
-130.5%
Cash and cash equivalents at the beginning of the financial year
463.1
757.5
-38.9%
Cash and cash equivalents at the end of the financial year
552.9
463.1
19.4%
NET CASH FROM OPERATING ACTIVITIES
Gross cash flow increased by 4.9% to € 964.1 million in financial year 2023 (from € 918.9 million in the
previous year). This development was due to the increase in non-cash adjustments relating to the financial
result and other non-cash expenses and income by 32.3% to € 485.7 million. In contrast, earnings before
taxes decreased by 13.3% to € 478.3 million.
PUMA Annual Report 2023
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243
↗ G.17 GROSS CASH FLOW (€ million)
As a result of the smaller increase in working capital compared to the previous year, there was a lower cash
outflow from the change in net working capital* of € - 129.2 million in financial year 2023, compared to a
cash outflow of € - 343.3 million in the previous year. The cash outflow from payments for income taxes
increased from € - 157.4 million in the previous year to € - 181.3 million in financial year 2023. On balance,
due to the improvement in gross cash flow and the lower cash outflows in connection with working capital,
there was a significant improvement in cash inflow from operating activities, which rose by 56.3% to
€ 653.6 million (from € 418.3 million).
NET CASH USED IN INVESTING ACTIVITIES
In the financial year 2023, cash outflow from investment activities increased from a total of € 240.8 million to
€ 284.6 million. The investments in fixed assets included in this figure increased from € 263.6 million in the
previous year to € 300.4 million in 2023 in line with our investment planning. The increase mainly related to
investments in our own retail stores, in our logistics infrastructure and in investment properties. In addition,
investments in the modernisation of the IT infrastructure continued to be made. The increase in capital
expenditures relates in particular to the North America and Latin America segments and the central area,
which is not allocated to the business segments.
* Net current assets include working capital line items plus current assets and liabilities, which are not part of the working
capital calculation. Current lease liabilities are not part of the net current assets.
704.8
522.8
821.2
918.9
964.1
2019
2020
2021
2022
2023
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244
FREE CASH FLOW BEFORE ACQUISITIONS
The free cash flow before acquisitions is the balance of the cash inflows and outflows from operating and
investing activities. In addition, an adjustment is made for incoming and outgoing payments that relate to
the purchase or sale of shareholdings, where applicable. No acquisitions or disposals of investments were
made in 2022 and 2023.
Free cash flow before acquisitions improved from € 177.5 million in the previous year to € 369.0 million in the
financial year 2023. Free cash flow before acquisitions was 4.3% of sales compared to 2.1% in the previous year.
↗ G.18 FREE CASH FLOW (BEFORE ACQUISITIONS) (€ million)
NET CASH USED IN FINANCING ACTIVITIES
The net cash used in financing activities decreased overall from a cash outflow of € 476.4 million in the
previous year to a cash outflow of € 277.1 million in 2023. The decline in cash outflow was mainly due to
increased proceeds from taking on financial borrowings.
A dividend payment of € 122.8 million was distributed to the shareholders of PUMA SE for the financial year
2022. In the previous year, the dividend payment was € 107.7 million. The net cash used in financing activities
also included payouts to non-controlling interests totalling € 92.4 million in 2023 (previous year:
€ 73.3 million). Cash inflows from borrowings amounted to € 299.6 million, compared with cash inflows of
€ 17.9 million in the previous year. In the financial year 2023, payments made for the repayment of financial
borrowings totalled € 59.1 million (previous year: € 69.5 million). The cash outflows for the repayment of
leasing liabilities and related interest expenses included in the cash outflow from financing activities
increased from a total of € 228.7 million in the previous year to € 254.8 million in 2023.
As of 31 December 2023, PUMA had cash and cash equivalents of € 552.9 million, an increase of 19.4%
compared with the previous year (€ 463.1 million). The PUMA Group also had credit lines totalling
€ 1,552.8 million as of 31 December 2023 (previous year: € 1,271.0 million). Unutilised credit lines amounted
to € 986.1 million as at the balance sheet date, compared to € 943.7 million in the previous year.
331.2
276.0
276.2
177.5
369.0
2019
2020
2021
2022
2023
PUMA Annual Report 2023
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245
STATEMENT REGARDING THE BUSINESS DEVELOPMENT AND THE OVERALL
SITUATION OF THE GROUP
In financial year 2023, we were confronted with an increasingly difficult geopolitical and macroeconomic
market environment. The conflict in the Middle East, the war in Ukraine, persistent inflation and risks of
recession had a negative impact on the consumer sentiment and led to volatile retail demand. We therefore
considered 2023 to be a transitional year. In 2023, we continued to focus on overcoming the short-term
challenges without compromising the medium and long-term success of PUMA. Accordingly, we prioritised
sales growth and increasing market share over short-term profitability optimisation. Despite the difficult
market environment, we were able to further increase PUMA's sales based on our operating flexibility. In
the past financial year, we were also able to fully achieve our target in terms of operating result.
Our focus on the PUMA family is an important cornerstone of our corporate strategy. We want to offer our
employees an attractive working environment and diversity plays an important role in our corporate culture.
In 2023, PUMA received multiple awards for this successful strategy, including the "Top Employer Award" for
24 PUMA subsidiaries in the Europe, Asia/Pacific and Latin and North America regions. We can therefore
continue to call ourselves a "Global Top Employer". We were also named one of the "World's Best
Employers" by Forbes and a "Leader in Diversity" by the Financial Times, and awarded the "Great Place to
Work" seal in numerous countries. We were able to further optimise our processes by upgrading the
logistics centres in our main markets, and by expanding existing warehouses and opening new ones. We
also invested in improving our IT infrastructure, product development and ERP systems.
We were able to achieve currency-adjusted sales growth of 6.6% in the financial year 2023. Sales
development was affected by the significant devaluation of the Argentine peso, which had an extraordinary
impact in the fourth quarter and on the full-year 2023. Due to the extent and timing of these currency
effects, we were unable to fully compensate for all of the negative impacts at the end of the year.
Nevertheless, sales development was mainly in the high single-digit percentage range, in line with the
outlook for currency-adjusted sales growth. In addition to sales growth, the gross profit margin improved.
However, these positive effects were offset by the slightly stronger increase in other operating income and
expenses compared to sales.
Operating result (EBIT) of € 621.6 million in the past financial year was in line with our forecast of a range
between € 590 million and € 670 million. Despite the significant devaluation of the Argentine peso, we have
therefore fully achieved our target in terms of operating result in the past financial year. The devaluation of
the Argentine peso had a particularly negative effect on the financial result. Because of this, consolidated
net income amounted to € 304.9 million compared to € 353.5 million in the previous year. This corresponds
to a decrease of 13.7%. Earnings per share therefore decreased from € 2.36 in the previous year to € 2.03.
Under the given circumstances of a challenging macroeconomic environment worldwide and the
exceptional devaluation of the Argentine peso, we are very satisfied with the achievement of objectives in
financial year 2023. We believe that, despite the exceptional devaluation of the Argentine peso, the business
development of PUMA in 2023 reflects strong underlying operational development and strict cost discipline.
With regard to the consolidated balance sheet, we believe that PUMA continues to have a very solid capital
base. As of the balance sheet date, the PUMA Group's equity amounted to nearly € 2.6 billion and the equity
ratio was 38.9%.
Our measures to right-size inventories to an appropriate level contributed to limiting the increase in our
working capital in 2023. This is also reflected in the improvement in the cash flow from operating activities
and free cash flow. Our cash and cash equivalents amounted to € 552.9 million as of the balance sheet date.
In addition, the PUMA Group has unutilised credit lines totalling € 986.1 million at its disposal.
Consequently, the net assets, financial position and results of operations of the PUMA Group is overall very
solid at the time the combined management report was prepared. This enables the Management Board and
the Supervisory Board to propose to the Annual General Meeting on 22 May 2024 a dividend of € 0.82 per
share for the financial year 2023. This corresponds to a payout ratio of 40.3% in relation to the consolidated
PUMA Annual Report 2023
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246
net income according to IFRS. The higher payout ratio results from the strong improvement in free cash
flow and reflects the underlying positive operating business development. In general, PUMA's dividend
policy continues to provide for a payout of 25% to 35% of consolidated net income.
PUMA Annual Report 2023
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247
COMMENTS ON THE FINANCIAL STATEMENTS OF
PUMA SE IN ACCORDANCE WITH THE GERMAN
COMMERCIAL CODE (HGB)
The annual financial statements of PUMA SE are prepared in accordance with the rules of the German
Commercial Code (German GAAP, HGB), taking into account the SEAG (German SE Implementation Act) and
the German Stock Corporation Act (AktG). PUMA SE is the parent company of the PUMA Group. PUMA SE's
results are to a large extent influenced by the directly and indirectly held subsidiaries and shareholdings.
The business development of PUMA SE is essentially subject to the same risks and opportunities as the
PUMA Group. In addition, the management of earnings before taxes (EBT) is affected by changes in the
financial result.
PUMA SE is responsible for wholesale business in the DACH area, consisting of the home market of
Germany, Austria, and Switzerland. Furthermore, PUMA SE is also responsible for pan-European
distribution for individual key accounts and for sourcing products from European production countries, as
well as global licensing management. In addition, PUMA SE acts as a holding company within the PUMA
Group and is as such responsible for international product development, merchandising, international
marketing, the global areas of finance, operations and PUMA's strategic direction.
RESULTS OF OPERATIONS
↗ T.04 INCOME STATEMENT (GERMAN GAAP, HGB)
2023
2022
€ million
%
€ million
%
+/- %
Sales
1,243.7
100.0%
1,151.9
100.0%
8.0%
Other operating income
83.7
6.7%
84.0
7.3%
-0.4%
Cost of sales
-389.5
-31.3%
-316.4
-27.5%
23.1%
Personnel expenses
-130.8
-10.5%
-120.2
-10.4%
8.8%
Depreciation
-36.1
-2.9%
-36.8
-3.2%
-2.0%
Other operating expenses
-898.8
-72.3%
-816.3
-70.9%
10.1%
Total expenses
-1,455.2
-117.0%
-1,289.7
-112.0%
12.8%
Financial result
258.8
20.8%
189.5
16.5%
36.6%
Income before Tax
131.0
10.5%
135.8
11.8%
-3.5%
Income tax
-21.2
-1.7%
-18.8
-1.6%
12.9%
Net income
109.8
8.8%
117.0
10.2%
-6.2%
In the financial year 2023, sales increased by a total of 8.0% to € 1,243.7 million. The increase resulted both
from higher revenues from product sales and from higher commission income in the context of licence
management. Revenues from PUMA SE product sales rose by 15.8% to € 589.4 million (previous year:
€ 508.9 million). Royalty and commission income included in sales increased by 1.7% to € 599.3 million
PUMA Annual Report 2023
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248
(previous year: € 589.1 million). Other sales, which mainly consisted of recharges of costs to affiliated
companies, totalled € 55.0 million in 2023 (previous year: € 53.9 million).
Other operating income amounted to € 83.7 million in 2023 (previous year: € 84.0 million) and includes, in
particular, realised and unrealised gains from currency conversion related to the measurement of
receivables and liabilities in foreign currencies at the balance sheet date.
The total expenditure from material expenses, personnel expenses, depreciation and other operating
expenses increased by 12.8% to € 1,455.2 million compared to the previous year (previous year: a total of
€ 1,289.7 million). The increase in material expenses compared to the previous year was mainly due to the
increase in sales. The disproportionate growth in material expenses in comparison with sales resulted from
intra-group sales of goods to PUMA Benelux, which were carried out without a surcharge. Personnel
expenses increased due to a higher number of employees. Other operating expenses increased compared
with the previous year, mainly due to increased administrative, marketing and sales expenses.
The financial result increased, compared to the previous year, by 36.6% to € 258.8 million. The increase was
mainly due to higher profit transfer from affiliated companies. The interest result and the income from
dividends from investments in affiliated companies fell slightly. In addition, the investment in Borussia
Dortmund GmbH & Co. KGaA (BVB), Dortmund, was written down in the financial year due to an impairment
of € 0.5 million, which is expected to be permanent.
The increase in sales was offset by the increase in expenses, which is why earnings before income taxes
fell by 3.5% to € 131.0 million in 2023 (from € 135.8 million in the previous year). Taxes on income amounted
to € 21.2 million (previous year: € 18.8 million). Accordingly, PUMA SE's net income under the German
Commercial Code (German GAAP, HGB) decreased by 6.2% to € 109.8 million in the financial year 2023
(previous year: € 117.0 million).
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249
NET ASSETS
↗ T.05 BALANCE SHEET (GERMAN GAAP, HGB)
31.12.2023
31.12.2022
€ million
%
€ million
%
+/- %
Fixed Assets
1,648.9
63.3%
1,100.3
43.7%
49.9%
Inventory
85.7
3.3%
115.2
4.6%
-25.6%
Receivables and other current assets
680.9
26.1%
1,177.8
46.8%
-42.2%
Cash and cash equivalents
165.8
6.4%
96.5
3.8%
71.8%
Current Assets
932.4
35.8%
1,389.5
55.2%
-32.9%
Others
23.7
0.9%
25.2
1.0%
-5.9%
Total Assets
2,605.0
100.0%
2,515.1
100.0%
3.6%
Equity
925.8
35.5%
933.8
37.1%
-0.9%
Accruals/Provision
123.7
4.7%
141.9
5.6%
-12.8%
Liabilities
1,555.0
59.7%
1,438.9
57.2%
8.1%
Others
0.5
0.0%
0.5
0.0%
0.0%
Total Equity & Liabilities
2,605.0
100.0%
2,515.1
100.0%
3.6%
Overall, fixed assets increased by 49.9% to € 1,648.9 million in 2023. The increase is mainly the result of the
increase in shareholdings in the amount of € 521.9 million due to capital contributions to PUMA Sprint
GmbH, Germany, as well as further investments in IT.
The decline in inventories of current assets by 25.6% to € 85.7 million was mainly due to more conservative
purchasing behaviour, especially at the end of the year. The consolidation of inventories for Central Europe,
including Benelux, and the associated improvement in the management of purchases and sales supported
the positive development of inventories. Receivables and other assets decreased by a total of 42.2%
compared with the previous year to € 680.9 million. In particular, lower receivables from affiliated
companies contributed to this development, which resulted in particular from the capital contribution. Cash
and cash equivalents increased by 71.8% to € 165.8 million compared to the previous year, due to the cash
inflow from financing and investing activities.
On the liabilities side, equity fell slightly by 0.9% to € 925.8 million in 2023. In combination with the increase
of the balance sheet total due to higher liabilities, this led to a decline in the equity ratio, which was 35.5%
as at the balance sheet date of 31 December 2023 compared to 37.1% in the previous year.
Provisions decreased by 12.8% compared to the previous year to € 123.7 million. This development was
mainly due to lower provisions for outstanding invoices. Liabilities increased from € 1,438.9 million in the
previous year to € 1,555.0 million as of 31 December 2023. This increase primarily resulted from the
increased liabilities to banks due to the taking out of a promissory note loan and, in contrast, lower
liabilities to affiliated companies.
PUMA Annual Report 2023
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250
FINANCIAL POSITION
↗ T.06 CASH FLOW STATEMENT (GERMAN GAAP, HGB)
2023
2022
€ million
€ million
+/- %
Cash flow used in/ from operating activities
-92.6
4.9
-
Cash flow from/ used in investing activities
66.3
-441.2
-
Free Cash Flow
-26.3
-436.3
-94.0%
Cash flow from financing activities
95.6
134.0
-28.7%
Change in cash and cash equivalents
69.3
-302.3
>-100%
Cash and cash equivalents at beginning of financial year
96.5
398.8
-75.8%
Cash and cash equivalents at year-end
165.8
96.5
71.8%
In financial year 2023, cash outflow from operating activities amounted to € 92.6 million, compared to a
cash inflow of € 4.9 million in the previous year. This development is mainly due to the decrease of
receivables from affiliated companies. In contrast, the reduction in inventories had a positive effect.
The cash inflow from investing activities in 2023 is mainly due to the reduction in cash pool and loan
receivables from affiliated companies. These are offset by cash outflows from investments in fixed assets.
Cash flow from financing activities showed a total cash inflow of € 95.6 million in 2023 (previous year:
€ 134.0 million). The cash inflow primarily resulted from the taking out of promissory note loans. In contrast,
reduced liabilities to affiliated companies and the payment of dividends to PUMA SE shareholders for
financial year 2022 in the amount of € 122.8 million led to a cash outflow.
OUTLOOK
In PUMA SE's financial statements under German Commercial Code (German GAAP, HGB), we expect an
increase in sales in the mid single-digit percentage range for the financial year 2024. Assuming dividends
from investments in affiliated companies at the previous year's level, we expect earnings before tax for the
financial year 2024 to be at the previous year's level.
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251
INFORMATION CONCERNING TAKEOVERS
The following information, valid 31 December 2023, is presented in accordance with Art. 9 p. 1 c) (ii) of the SE
Regulation in conjunction with Sections 289a, 315a German Commercial Code (HGB). Details under Sections
289a, 315a HGB which do not apply at PUMA SE are not mentioned.
Composition of the subscribed capital (Sections 289a [1][1], 315a [1][1] HGB))
On the balance sheet date, subscribed capital totaled € 150,824,640.00 and was divided into 150,824,640 no-
par value shares with a proportional amount in the statutory capital of € 1.00 per share. As of the balance
sheet date, the Company held 980,096 treasury shares.
Shareholdings exceeding 10% of the voting rights (Sections 289a [1][3], 315a [1][3] HGB)
As of 31 December 2023, there was one shareholding in PUMA SE that exceeded 10% of the voting rights. It
was held by the Pinault family via several companies controlled by them (ranked by size of stake held by the
Pinault family: Financière Pinault S.C.A., Artémis S.A.S. and Kering S.A.). The shareholding of Kering S.A. in
PUMA SE amounted to 1.47% of the share capital on 18 September 2023. The shareholding of Artémis S.A.S.
and Kering S.A. together amounted to 29.99% of the share capital on18 September 2023.
Statutory provisions and regulations of the Articles of Association on the appointment and
dismissal of the members of the Management Board and on amendments to the Articles of Association
(Sections 289a [1][6], 315a [1][6] HGB)
Regarding the appointment and dismissal of the members of the Management Board, reference is made to
the applicable statutory requirements of Section 84 German Stock Corporation Act (AktG). Moreover, Section
7[1] of PUMA SE’s Articles of Association stipulates that Management Board shall consist of two members in
the minimum; the Supervisory Board determines the number of members in the Management Board. The
Supervisory Board may appoint deputy members of the Management Board and appoint a member of the
Management Board as chairperson of the Management Board. Members of the Management Board may be
dismissed only for good cause, within the meaning of Section 84[3] of the AktG or if the employment
agreement is terminated, for which in each case a resolution must be adopted by the Supervisory Board
with a simple majority of the votes cast.
Amendments to the Articles of Association of the Company require a resolution by the Annual General
Meeting. Resolutions of the Annual General Meeting require a majority according to Art. 59 SE Regulation
and Sections 133[1], 179 [2] [1] AktG (i.e. a simple majority of votes and a majority of at least three quarters of
the share capital represented at the time the resolution is adopted). The Company has not made use of
Section 51 SEAG.
Authority of the Management Board to issue or repurchase shares (Sections 289a [1][7], 315a [1][7] HGB)
The authority of the Management Board to issue shares result from Section 4 of the Articles of Association
and from the statutory provisions:
AUTHORISED CAPITAL
By resolution of the Annual General Meeting on 5 May 2021, the Management Board is authorised, with
approval of the Supervisory Board, to increase the share capital of the Company by up to EUR 30,000,000.00
by issuing, once or several times, new no par-value bearer shares against contributions in cash and/or kind
until 4 May 2026 (Authorised Capital 2021). In case of capital increases against contributions in cash, the new
shares may be acquired by one or several banks, designated by the Management Board, subject to the
obligation to offer them to the shareholders for subscription (indirect pre-emption right).
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The shareholders shall generally be entitled to pre-emption rights. However, the Management Board shall
be authorised with approval of the Supervisory Board, to partially or completely exclude pre-emption rights
• to avoid peak amounts;
• in case of capital increases against contributions in cash if the pro-rated amount of the share capital
attributable to the new shares for which pre-emption rights have been excluded does not exceed 10% of
the share capital and the issue price of the newly created shares is not significantly lower than the
relevant exchange price for already listed shares of the same class, Section 186 (3) sentence 4 of the
German Stock Corporation Act (Aktiengesetz, AktG). The 10% limit of the share capital shall apply at the
time of the resolution on this authorisation by the Annual General Meeting as well as at the time of
exercise of the authorisation. Shares of the Company (i) which are issued or sold during the term of the
Authorised Capital 2021 excluding shareholders’ pre-emption rights directly or respectively applying
Section 186 (3) sentence 4 AktG or (ii) which are or can be issued to service option and convertible bonds
applying Section 186 (3) sentence 4 AktG while excluding shareholders’ pre-emption rights during the
term of the Authorised Capital 2021, shall be counted towards said limit of 10%;
• in case of capital increases against contributions in cash insofar as it is required to grant pre-emption
rights regarding the Company’s shares to holders of option or convertible bonds which have been or will
be issued by the Company or its direct or indirect subsidiaries to such an extent to which they would be
entitled after exercising option or conversion rights or fulfilling the conversion obligation as a
shareholder;
• in case of capital increases against contributions in kind for carrying out mergers or for the direct or
indirect acquisition of companies, participation in companies or parts of companies or other assets
including intellectual property rights and receivables against the Company or any companies controlled
by it in the sense of Section 17 AktG.
The total amount of shares issued or to be issued based upon this authorisation while excluding
shareholders’ pre-emption rights may neither exceed 10% of the share capital at the time of the
authorisation becoming effective nor at the time of exercising the authorisation; this limit must include all
shares which have been disposed of or issued or are to be issued during the term of this authorisation
based on other authorisations while excluding pre-emption rights or which are to be issued because of an
issue of option or convertible bonds during the term of this authorisation while excluding pre-emption
rights. The Management Board shall be entitled, with approval of the Supervisory Board, to determine the
remaining terms of the rights associated with the new shares as well as the conditions of the issuance of
shares. The Supervisory Board is entitled to adjust the respective version of the Company’s Articles of
Association with regard to the respective use of the Authorised Capital 2021 and after the expiration of the
authorisation period.
The Management Board of PUMA SE did not make use of the existing Authorised Capital in the current
reporting period.
CONDITIONAL CAPITAL
The Annual General Meeting of 11 May 2022 has authorised the Management Board until 10 May 2027 with
the approval of the Supervisory Board to issue once or several times, in whole or in part, and at the same
time in different tranches bearer and/or registered convertible bonds and/or options and profit-participation
rights and/or profit bonds or combinations thereof with or without maturity restrictions in the total nominal
amount of up to € 1,500,000,000.00.
The share capital is conditionally increased by up to € 15,082,464.00 by issue of up to 15,082,464 new no-par
value bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented
to the extent that conversion/option rights are exercised, or the conversion/option obligations are
performed, or tenders are carried out and to the extent that other forms of performance are not applied.
No use has been made of this authorisation to date.
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AUTHORISATION TO ACQUIRE TREASURY SHARES
The Annual General Meeting of 7 May 2020 resolved under agenda item 6 to authorise PUMA SE to acquire
and utilise treasury shares until 6 May 2025, including the authorisation to sell treasury shares while
excluding shareholders' pre-emption rights and the authorisation to offer and transfer treasury shares to
third parties against non-cash consideration. The authorisation from 2020 was extended by resolution of the
Annual General Meeting on 5 May 2021 to the effect that the Supervisory Board was authorised to issue
treasury shares to members of the Management Board as a component of Management Board
remuneration, while excluding shareholders' pre-emption rights. In addition, the authorisation from 2020
was extended by resolution of the Annual General Meeting on 11 May 2022 to the effect that the Management
Board was authorised to issue shares acquired, excluding shareholders' subscription rights, in connection
with share-based payment or employee share programs of the Company or its affiliated companies to
persons who are or were employed by the Company or one of its affiliated companies or are a member of
the management of a company affiliated with the Company. In all other aspects, the authorisation from 2020
remained unchanged.
No use has been made of the authorisation to acquire treasury shares in the reporting period.
Significant agreements of the Company which are subject to a change of control as a result of a takeover
bid and the resulting effects (Section 289a [1][8], 315a [1][8] HGB)
Material financing agreements of PUMA SE with its creditors contain the standard change-of-control
clauses. In the case of change of control the creditor is entitled to termination and early calling-in of any
outstanding amounts.
For more details, please refer to the relevant disclosures in chapter 17 of the Notes to the Consolidated
Financial Statements.
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CORPORATE GOVERNANCE STATEMENT IN
ACCORDANCE WITH SECTION 289F AND 315D HGB
┌
The corporate governance statement (in accordance with Sections 289f and 315d HGB) includes the
declaration of compliance, information on corporate governance practices and a description of the working
methods of the Management Board and Supervisory Board. It is available at
https://about.puma.com/en/investor-relations/corporate-governance.
└
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RISK AND OPPORTUNITY REPORT
PUMA is continuously exposed to opportunities and risks in the competitive, fast-paced and international
sport and lifestyle industry. The risk strategy is therefore to take business risks in a calculated manner in
order to implement the corporate strategy with all its opportunities. For this purpose, effective risk and
opportunity management is required so that opportunities can be recognised and utilised, and risks can be
identified and managed at an early stage. We define risks as potential future developments or events that
may lead to a negative deviation from targets for the company (see the "Risk Management System" section).
Similarly, opportunities are potential future developments or events that may result in a positive deviation
from targets.
RISK MANAGEMENT SYSTEM
PUMA takes a conscious and controlled approach to risks in order to achieve the company's goals. The aim
of the risk management system is to identify and manage at an early-stage material risks or risks that could
even jeopardise the company's existence and thus support the achievement of the company's objectives. In
addition, compliance with the related laws, regulations and standards must be ensured, as well as
transparency in relation to the risk situation from the perspective of partners such as customers, suppliers
and investors. Therefore, PUMA has established an appropriate and effective risk management organisation
which is able to identify risks at an early stage and manage them in accordance with the corporate strategy
and promote risk awareness within the PUMA Group to facilitate risk-based decisions. As part of the
organisation, risks are looked at Group-wide, unless explicitly stated to the contrary. As in the previous year,
PUMA's risk management system is based on a comprehensive, interactive, and management-oriented
approach to risk that is integrated into the company's organisation and is based on the globally recognised
COSO standard (Committee of Sponsoring Organisations of the Treadway Commission). Opportunity
management is not part of the risk management system and is the responsibility of operational
management teams in the respective regions, markets, and departments (see the "Opportunities" section).
The Management Board of PUMA SE bears overall responsibility for the risk management system in
accordance with Section 91(3) AktG. The Management Board regularly updates the Audit Committee of the
Supervisory Board of PUMA SE. In addition, pursuant to Section 107(4), the Audit Committee has a direct
right to information from the operational management departments. The Risk Management Committee,
which consists of the PUMA SE Management Board and selected managers, is responsible for the design,
review, and adaptation of the risk management system. For the operational coordination of the risk
management process and support of the risk officers, the risk management function of the Group Internal
Audit, Risk Management & Internal Control department has been assigned to prepare the regular risk
reporting to the Risk Management Committee. The responsibilities, tasks and processes of the risk
management system are defined in PUMA’s enterprise risk guidelines. The structure and design of the risk
management system are as follows:
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↗ G.19 RISK MANAGEMENT SYSTEM
The risk owners are mainly the managers of the functional areas and the managing directors of the
subsidiaries. Risks are identified company-wide by performing a bottom-up analysis within the risk owner's
area of responsibility. These risks are regularly reported to the risk management function and/or the local
monitoring bodies in structured interviews that take place every six months or during the year using
established internal reporting channels. As a part of the risk culture at PUMA, general information for risk
management as well as training materials are made available for all employees.
The risks are evaluated and assessed in terms of probability of occurrence and extent of damage using
quantitative criteria with the help of a systematic methodology. The quantitative criteria are represented in
the form of risk classification ranges on a four-level scale: Low, Medium, Significant and High. While the
risk assessment of the probability of occurrence is measured as a percentage rate, the extent of damage is
based on the planned operating result for the upcoming financial year. We follow a net risk approach,
addressing the risks that remain after existing control measures have been implemented. The resulting risk
assessments are presented as an aggregated risk group ("overall risk situation"). Thus, for the materiality
assessment, the quantified risks are combined from their extent of damage and probability of occurrence
and are classified in a comprehensive risk matrix regarding their significance level (“Low”, “Moderate”,
“Material” and “Critical”) for internal monitoring and to assess their viability (see graphic G.21).
For example, a risk can be allocated within the most critical range, which may also include risks that could
even jeopardise the company's existence, in the case that its assessment reflects a combination of highest
bandwidth for extent of damage (“High > € 50 million”) and probability (“High > 50%”). The overview of the
risk groups is presented in table T.7, summarised in the order of their relative importance and their change
during the year.
Supervisory Board / Audit Committee
Management Board / Risk Management Committee
Risk Strategy
Internal Audit
Monitoring
Risk Owner
Subsidiaries
Functions
Identification
Management
Assessment
Reporting
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↗ G.20 RISK MATRIX
Regular risk identification and assessment is carried out by the risk management function every six months
with all major functional areas. The risks recorded and assessed are also reviewed with a top-down
approach by the Risk Management Committee. This ensures that adequate consideration is given to
interdependencies and the overall risk situation.
The risk owners are responsible for the operational management of identified risks. Risks can be managed
by avoiding, reducing, diversifying, or transferring the risk to achieve the targeted and acceptable residual
risk. Within the reporting process, material risks or those which could even jeopardise the company’s
existence are coordinated with and managed by the Risk Management Committee or the Management
Board, considering the risk-bearing capacity, which is also based on the planned operating result.
The methodology and structure of the risk management system are continuously monitored in terms of
their appropriateness and effectiveness and adapted or improved when required. This is carried out on the
one hand by the Internal Audit department, as an independent audit body within the PUMA Group, and on
the other hand through the utilisation of the results of the auditor of PUMA SE, which assesses the early
risk identification system annually for its fundamental suitability to be able to identify risks that endanger
the company’s existence at an early stage.
Likelihood in %
low
moderate
material
critical
high
significant
medium
low
>50
≤50 ≥20
<20 ≥10
<10
Significance level
Impact in € million
≥5 <20
medium
≥20 <50
significant
≥2 <5
low
≥50
high
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RISKS
The following explanations of risk groups are presented based on their relative importance from the Group
perspective for the financial year 2023.
MACROECONOMIC DEVELOPMENTS
As an internationally operating enterprise, PUMA is exposed to challenges and uncertainties that affect the
global economy and the associated risks may have an impact on our sales and sourcing markets. For
example, macroeconomic risks because of economic recessions, changes in interest rates, or inflation and
cost pressures, might have an impact on consumer behavior, production costs, sales, and profit margins.
Likewise, global events such as political changes, social developments, geopolitical tensions, and natural
disasters can disrupt supply chain activities or affect consumer sentiment, are also reflected in legal and
macroeconomic conditions.
In 2023, the macroeconomic and geopolitical environment remain challenging. The recent conflict in Middle
East, the war in Ukraine, persistent inflation, and the risks of recession weights on consumer sentiment,
resulting in volatile demand in the retail sector. The pattern of China’s economic recovery after COVID-19
remains uncertain and competition with both local and global brands remains high.
Overall, we manage these challenges by having close alignment and communication with regions and key
markets to follow up and deal with critical developments affecting PUMA business environment (e.g., price
increases, supply chain interruptions, geopolitical tensions) and develop alternative scenarios to analyse
possible occurrence of events. Moreover, the Management Board is regularly updated about country and
macroeconomic developments and defines action plans to quickly adapt to changing economic conditions.
BUSINESS PARTNERS
As an enterprise with global operations, managing sourcing and supply chain related risks is of key
importance for PUMA. Most of our PUMA products are produced in Asia in countries like China, Vietnam,
Cambodia, Bangladesh, Indonesia and India. In addition to the challenges, production in these countries
continues to be associated with significant risks for us. These risks arise, for example, from changes in
sourcing, wage and logistic costs, supply bottlenecks for raw materials or components, and quality issues,
as well as from the possibility of overdependence on individual suppliers. Sourcing and the supply chain
must also react to risks, such as changes in duties and tariffs as well as trade restrictions and government
requirements. The transport of products to the distribution countries is also exposed to the risk of delays
and failures by warehouse and logistics service providers due to extraordinary events and/or human or
system error.
To mitigate business partners related risks, we have implemented a functional framework for sourcing and
supply chain processes. Our sourcing portfolio is regularly reviewed and adjusted to avoid creating a
dependence on individual suppliers and sourcing markets. Generally, long-term master framework
agreements are concerted to secure the required production capacities for the future. Regular
communication with PUMA entities allows us to anticipate any price increase and strengthen our forecast
activities. A quality control process and the direct and partnership-like collaboration with suppliers should
permanently secure the quality and availability of our products. Moreover, we continuously analyse political,
economic, and legal framework conditions and have further enhanced our close cooperation with our
logistics partners to be able to react to changes in the supply chain early on and to continuously strengthen
the supply chain. The collaboration with warehouse and logistics service providers is accordingly secured by
selection processes, consistent contractual terms, and permanent monitoring of relevant indicators.
In 2023 global sourcing markets normalised because of the end of COVID-related restrictions: However,
there are continued supply chain and sourcing challenges regarding rising costs and the potential threat of
a larger recession that could still cause disruptions and delays in the operations. To diminish these
challenges, we have further intensified the cooperation with our suppliers and logistics partners to be able
to act flexibly and base our actions around finding the right solutions.
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CURRENCY RISKS
As a group that operates internationally, PUMA is exposed to transactional foreign currency risks. The
currency risks exist to the extent that the exchange rates of currencies in which purchase and sales
transactions as well as lending transactions and receivables are carried out fluctuate against the functional
currency of the PUMA Group - the euro.
PUMA's biggest sourcing market is Asia, where most payments are settled in US dollars (USD), while sales
of the PUMA Group are mostly invoiced in other currencies. PUMA manages currency risk in accordance
with internal guidelines. Material risks are hedged, in accordance with the Group directive, up to a hedging
ratio of 95% of the estimated foreign currency risks from expected purchase and sales transactions over the
next 12 to 15 months. Forward exchange contracts and currency options, usually with a term of around 12
months from the reporting date, are used to hedge the foreign currency risk. For significant risks that are
subject to large hedging costs, high hedging ratios can only be achieved over shorter terms.
To hedge signed or pending contracts against currency risk, PUMA only concludes currency forward
contracts and currency options on customary market terms with reputable international financial
institutions. As of the end of 2023, the net requirements for the 2024 planning period were adequately
hedged against currency effects, if possible.
Foreign exchange risks may also arise from intra-group loans granted for financing purposes. Currency
swaps and currency forward transactions are used to hedge currency risks when converting intra-group
loans denominated in foreign currencies into the functional currencies of the group companies (EUR).
In addition, as an international group with its own presence in a large number of countries, PUMA is also
exposed to translation risks. These arise in the course of consolidation when individual financial statements
of foreign subsidiaries that do not prepare their accounts in euros are translated into the PUMA Group's
functional currency, the euro.
In countries with high interest and inflation rates, both transaction risks and translation risks can arise to a
considerable extent. PUMA does not hedge these risks, as the hedging costs in high-interest countries -
insofar as hedging is possible at all - in some cases significantly exceed the benefits of hedging. The
negative effects of currency and inflation are generally compensated for by adjusting the prices of products
in the respective market.
In order to disclose market risks, IFRS 7 requires sensitivity analysis that show the effects of hypothetical
changes in relevant risk variables on earnings and equity. The periodic effects are determined by relating
the hypothetical changes caused by the risk variables to the balance of the financial instruments held as of
the balance sheet date. The underlying assumption is that the balance as of the balance sheet date is
representative for the entire year.
Currency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a
currency which differs from the functional currency and are monetary in nature. Differences resulting from
the conversion of the individual financial statements to the group currency are not taken into account. All
non-functional currencies in which the Group employs financial instruments are generally considered to be
relevant risk variables.
The currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies.
This also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also
reassessed as part of the sensitivity analysis. It is assumed that all other influencing factors, including
interest rates and raw material prices, remain constant. The effects of the forecasted operating cash flows
are also ignored.
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Currency forward contracts, used to hedge against payment fluctuations caused by exchange rates, are part
of an effective cash-flow hedging relationship pursuant to IAS 39. Changes in the exchange rate of the
currencies underlying these contracts have an effect on the hedge reserve in equity and on the fair value of
these hedging contracts.
PANDEMIC
PUMA first identified the COVID-19 pandemic as a new risk in the financial year 2020 and accordingly estab-
lished the risk category "Pandemic”. Risks related to a pandemic event such as supply chain disruptions,
economic and financial strains, lockdowns, retail store closings, cancellations of sport events or social
restrictions could lead to severe business disruptions, reduced consumption, loss of sales, or liquidity
shortfalls. For financial year 2023, the negative impacts of the pandemic have diminished as countries and
regions ended pandemic-related restrictions and economic and life activities are normalising. In principle,
uncertainties arise in relation to new variants that could lead to possible lockdowns or restrictions.
To mitigate pandemic-related risks, different strategic approaches have been established to ensure and
prioritise the health and safety of our employees and customers, as well as continuous monitoring of the
situation and possible restrictions. There is continuous monitoring of the latest economic events and close
alignment with our regions and key markets to manage critical developments and adapt to market
conditions. Close cooperation with partners and suppliers is essential to implement and monitor
contingency strategies. In addition to Direct-to-Consumer business, the e-commerce business and PUMA
App are an essential part of our distribution structure.
PRODUCT & MARKET ENVIRONMENT
The sport and lifestyle markets are defined by intense competition, constant innovation, and changing
consumer preferences. PUMA faces the challenge of continuously innovating and differentiating its product
offering to capture consumer interest and gain and edge over its competitors. Product and market
environment risks could arise from a non-anticipated or late response to consumer demand within the fast-
moving lifestyle and sports markets. Constant changes in consumer lifestyle/sports trends and long product
lifecycles bear the risk of creating products that are not relevant to our consumers, launching them at the
wrong time, launching them with the wrong marketing campaign or placing them in the wrong distribution
channels. As a result, these risks could lead to a loss in market share, sales shortfalls, and lower brand
attractiveness. Media reports about PUMA also play a key role in brand image. For example, reports about
the infringement of laws or internal/external requirements, product recalls and exposure on social media
as well as reports about workforce diversity and tolerance can cause significant damage to brand image and
ultimately result in the loss of sales and profit.
To mitigate these risks, we conduct market research and systemic monitoring of market environment for
early recognition and taking advantage of relevant consumer trends. Targeted investments in product design
and product development are to ensure that the characteristic PUMA design of the entire product range is
consistent with the overall brand strategy ("Forever Faster"), thereby creating a unique level of brand
recognition. Accordingly, we have set the guiding principle that "We want to become the fastest sports brand
in the world" to underline the company's long-term direction and strategy. The "Forever Faster" brand
promise does not just stand for PUMA's product range as a sports and lifestyle company, but also applies to
all company processes. Brand image is particularly strengthened through cooperation with brand
ambassadors who embody the core of the brand and PUMA's brand values ("brave," "confident,"
"determined" and "joyful") and have a large potential for influencing PUMA's target group. We additionally
counter this risk through careful press, social media, and public relations work as well as by monitoring the
press and social media environment.
PROJECTS
The strategic program portfolio of PUMA contains important and critical projects to ensure that the flow of
goods and information is sufficiently supported by modern warehouse, logistics and IT infrastructure. These
include, for example, the implementation of IT systems to enhance operations, such as centralised systems
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or e-commerce platforms and systems in the warehouse and supply chain. Risk associated with projects
include ineffective change management, lack of resources, high costs, exceeding budget, overrun time
frames, non-acceptance of users due to weak communication, increase vulnerability to potential data
breaches and disruption to business processes.
To manage project-related risks effectively, PUMA has established group and regional project teams as well
as policies to manage the roll-out of new and existing projects that have a significant impact on the core
value chain. In addition, as part of project management practices, continuous alignment with stakeholders
and steering meetings to monitor, provide support and guidance on strategic projects are implemented to
ensure its execution is in line with pre-defined objectives and milestones such as time frames and budgets.
INFORMATION TECHNOLOGY
The ongoing digitalisation of business environments brings new challenges to PUMA in the field of
information technology which – in case of incidents - may have an impact on our operations, data security
and privacy, as well as overall performance. Key business procedures and processes such as supply chain
management, e-commerce, and financial reporting depend on digital services, infrastructure, and their
unimpaired availability. Interruptions of service availability can disrupt essential processes and cause
operational problems. Moreover, information security is of outmost importance for PUMA, the risk of a data
breach might lead to financial loss, brand damage, legal claims, and loss of customer trust.
To mitigate these risks, we continuously carry out technical and organisational measures. Key business
procedures, processes and infrastructure on information technology and security are established based on
best -practice frameworks, regularly updated and controlled. These processes are subject to internal and
external audits to ensure their reliability and the appropriateness of control mechanisms. Appropriate
procedures and guidelines related to IT-incident response are in place and updated accordingly. Moreover,
PUMA has an Information Security Committee which consistently updates the Management Board on the
latest status and developments. In addition, trainings and information campaigns are conducted regularly to
increase awareness and knowledge on information security related issues.
DISTRIBUTION STRUCTURE
PUMA relies on different distribution channels including the Wholesale business with our retail partners
and the Direct-to-Consumer (DTC) business with our PUMA-owned and operated (O&O) retail stores and e-
commerce platforms. This diversified distribution mix enables PUMA to reduce its dependency on individual
distribution channels and/or retail partners.
The wholesale business represents the largest share of sales overall and is characterised by strong
partnerships with all our retail partners. The company’s DTC business has a complementary role and is
intended to ensure a better and more comprehensive presentation of PUMA products in a controlled brand
environment, direct interaction with our end consumers and a higher gross profit margin.
In the wholesale business, growing retailers, including those offering their own brands, and direct
competitors pose the risk of intensified competition for market shares, price pressures or reduced profit
margins. Consumer purchase behavior is also changing, focusing more on e-commerce and a combination
of stationary and digital trade. This requires continuous adjustment of the distribution structure.
Distribution through our O&O retail stores and e-commerce platforms is, however, also associated with
various risks including the required investments in expansion and infrastructure, setting up and
refurbishing stores, higher fixed costs, and leases with long-term lease obligations. This can have an
adverse impact on profitability in the event of a business decline.
To avoid risks, we carry out permanent monitoring of distribution channels and regular reporting by
Controlling and the dedicated functions. We maintain strong collaborations with all our retail partners in line
with our wholesale-focused strategy. The company's reporting and controlling system allows us to detect
negative trends early on, and to take the countermeasures required to manage individual stores and overall
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to monitor the evolution of the distribution landscape. A detailed location and profitability analysis is carried
out in our DTC business before making any investment decision. In e-commerce, global activities are
harmonised and investments in IT systems are carried out to further improve the shopping experience for our
consumers and to drive conversion. This includes the continued global roll-out of the PUMA Shopping App.
SUSTAINABILITY
Sustainability topics are highly important for PUMA specially in sourcing as well as along the entire value
chain. Natural resources crises and the resulting increase in customer requirements regarding
sustainability have led to a stronger ecological focus in our product range, both at our own locations and
along the production and supply chain. A more efficient use of resources, reduction in greenhouse gas
emissions and compliance with environmental standards as well as the increased use of environmentally
preferred materials and environmentally friendly chemicals in production are crucial parts of our
sustainability strategy. The risk of not implementing an effective sustainability approach to our products and
along the supply chain could lead to serious brand damage, loss of customer loyalty, supply chain
disruptions, increased costs, and non-compliance with environmental regulations.
PUMA’s efforts towards managing sustainability risks and efficient use of resources are reflected in the
comprehensive “Forever Better” strategy which defines 10 target areas to improve sustainability
performance: Human Rights, Climate Action, Circularity, Products, Water and Air, Biodiversity, Plastics and
the Oceans, Chemicals, Health & Safety as well as Fair Income. For each of these target areas, which are
aligned to the UN Sustainable Development Goals (SDGs), there are measurable targets and KPI’s which are
regularly monitored and reported to Board Members, Supervisory Board, and stakeholders. Additionally,
risk assessments and audits are performed to ensure our suppliers follow environmental standards.
PUMA’s efforts to engage with stakeholder dialog through different events like “Conference of the People”
or "Voices of a RE:GENERATION" allowed to discuss sustainability topics with generation Z representatives,
industry peers, experts and activists.
PUMA's sustainability report (the Non-financial Report) for the financial year 2023 is published together
with the combined management report and can be accessed at the following page on our website:
https://about.PUMA.com/en/investor-relations/financial-reports.
MONITORING OF WORKING CONDITIONS
An important aspect of corporate responsibility is maintaining and monitoring good working conditions and
compliance with human rights in PUMA’s own operations and throughout the supply chain to ensure that
employee’s rights and well-being are protected. This risk considers the event of human rights violation or
social and environmental non-compliance (e.g., child labor, excessive overtime, forced labor, sexual
harassment, gender-based violence, unsafe work environment, fair income) in PUMA’s own business and its
supply chain.
To mitigate these risks, PUMA has implemented clear policies that are aligned with all relevant legislation
on sustainability like the German Supply Chain Act, United Nations’ (UN) Declaration of Human Rights, the
UN Guiding Principles (UNGPs) on Business and Human Rights, the International Labor Organisation’s Core
Labor Conventions, and the ten principles of the UN Global Compact (UNGC). Regular audits and human
rights/environmental risk assessments are conducted at the corporate and the supply chain level to
evaluate compliance with applicable standards. Stakeholder dialogue with NGOs and partnerships with
organisations (e.g., Fair Labor Association) enable transparent communication channels to address
concerns and share best practices regarding human rights and environmental standards.
PUMA’s Sustainability Report (the Non-financial Report) for the financial year 2023 is available here:
https://about.PUMA.com/en/investor-relations/financial-reports.
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LEGAL
As an internationally operating group, PUMA is exposed to various legal risks. These risks could arise from
Intellectual Property (IP) infringements that involve using a trademark, patent or copyright without proper
authorisation and resulting in legal disputes, brand damage or loss of exclusivity rights. Contractual risks or
risks that a third party could assert claims and litigations for infringements of its trademark rights are also
considered. Counterfeit products are often of inferior quality and may not meet safety standards which can
undermine the PUMA’s brand reputation, reduce consumer trust and lead to legal disputes.
The continuous monitoring of contractual obligations and the integration of internal and external legal
experts in contractual matters should ensure that any legal risks reduced to the minimum. The legal team
is responsible for protecting our intellectual property in order to act against brand piracy. This not only
ensures that we have a strong global portfolio of property rights, such as trademarks, designs and patents,
but also works closely with customs, police and other authorities and provides input to legislators regarding
the implementation of effective measures to protect intellectual property.
COMPLIANCE
As an international group, PUMA is exposed to compliance risks resulting from the potential non-adherence
to corporate governance rules, legal and regulatory requirements, or industry standards. These risks
include fraud, conflict of interest, money laundering, antitrust law, corruption as well as deliberate
misrepresentations in financial reporting which may lead to significant penalties, legal consequences,
reputational damage, and disruption to business operations.
PUMA has implemented various tools to manage such risks. This includes a functioning compliance
management system, the internal control system, group controlling and the internal audit departments to
prevent, detect and sanction compliance-related topics at an early stage. Through the compliance
management system, clear roles and responsibilities are assigned to group and local compliance functions.
To ensure PUMA employees comply with PUMA ‘s values there are ongoing trainings, communication and
awareness campaigns for policies and procedures. PUMA employees also have access to a whistleblowing
system for reporting illegal or unethical behavior.
TAX
As a global company PUMA is exposed to a complex tax environment in which main challenges arise from
cross-border transactions involving intercompany transfer of goods, services, and intellectual property. To
minimise tax exposure, it is essential to optimise tax planning activities and ensure compliance with local
and international laws and reporting requirements. In addition to compliance with national tax regulations
to which the individual group companies are subject, there are increasing risks related to intra-group
transfer pricing, which must be applied for various internal business transactions in accordance with the
arm's length principle between related parties. Different countries have implemented laws and guidelines
for international taxes in alignment with the Organisation for Economic Co-operation and Development
(OECD) recommendations to standardise requirements for transfer-pricing documentation and update
global tax policy.
In order to manage tax-related risks in an effective manner, PUMA established a solid tax governance
framework. An adequate tax organisation with internal and external tax experts to comply with the relevant
tax regulations and to be able to react to changes in the constantly changing tax environment. For the
group-internal transfer pricing, corresponding documentation and policies are in place and aligned with
international and national requirements and standards. There are guidelines and specifications for
determining transfer prices for intra-group transactions that are common for foreign companies, which
comply with the applicable internal procedural rules and are binding for employees who act on behalf of the
group. By means of internal tax reporting, external and internal tax experts can control and monitor tax
developments at PUMA on an ongoing basis. Training and awareness activities are performed on a regular
basis to ensure relevant stakeholders are informed about current tax developments and acquire further
expertise for tax treatment activities. Both, the Management Board, and the Supervisory Board, are
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regularly informed about ongoing tax developments at PUMA to identify and avoid tax-related risks as early
as possible.
PERSONNEL DEPARTMENT
The creative potential, commitment and performance of PUMA employees are essential factors for
achieving our strategic and financial targets. Personnel-related risks involve the management of workforce,
talent acquisition and retention, employee engagement and compliance with employment laws. Any
shortfall in staffing may lead to inadequate performance of tasks and have a negative impact on operational
efficiency. In addition, there is still strong global competition for highly qualified personnel. Therefore, loss
of key personnel and difficulties in identifying, attracting, and retaining key talent could lead to loss of know-
how and decrease business performance. Likewise, non-compliance to health and safety laws and
regulations could lead to accidents, penalties, employee dissatisfaction, business interruptions and
reputational damage at Group level.
Through our human resources strategy, we seek to encourage independent thinking and action, which are
key in an open corporate culture with flat hierarchies on a long-term and sustainable basis. To achieve this
goal, a control process is in place to detect and assess human-resource risks. PUMA pays particular
attention to talent management, identifying key positions and talent, ensuring this talent is trained and
positioned optimally, and succession planning. We have also instituted additional national and global
regulations and guidelines to ensure compliance with legal provisions and safeguard the health and safety
of our employees. Moreover, employee surveys are conducted to obtain feedback and measure employee
engagement (e.g., “Great Place to Work”, “Diversity Leader”). During 2023, PUMA received several awards
which recognised the ongoing efforts to create a diverse, inclusive, and equal workforce (e.g., “Top
Employer”). We will continue to make targeted investments in the human resource needs of functions or
regions to meet the future requirements of our corporate strategy.
LIQUIDITY AND INTEREST RATE RISKS
PUMA continually analyses short-term capital requirements by rolling cash flow planning at the level of the
individual companies in coordination with the central Treasury department. In order to ensure the
company's solvency, financial flexibility and a strategic liquidity buffer, PUMA maintains, for example, a
liquidity reserve in the form of cash and confirmed credit facilities. In this respect, as of December 31, 2023,
the PUMA Group had unused credit lines totaling € 896.1 million.
Medium and long-term funding requirements that cannot be directly covered by net cash from operating
activities are financed by taking out medium and long-term loans. For this purpose, various promissory note
loans were issued in several tranches with fixed and variable coupons and different remaining terms. The
utilised promissory note loans amount to a total of € 551.5 million as of December 31, 2023 and have a
remaining term of between one and five years.
Changes in market interest rates around the world have an impact on future interest payments for variable
interest liabilities. As PUMA only has a limited amount of variable interest-bearing liabilities, interest rate
hedging instruments are used to a limited extent.
DEFAULT RISKS
Due to its business activities, PUMA is exposed to default risk on trade receivables. These risks consider
delayed payments and losses of accounts receivables (e.g., default of a customer) as well as default risks
from counterparty's other contractual financial obligations (e.g., bank deposits, derivative financial
instruments). This could lead to bad debt expenses and reduced liquidity and could have a negative impact
on cash flow and profitability, as trade receivables are one of the most significant financial assets.
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The default risk is managed by continuously monitoring outstanding receivables and recognising
impairment losses, where appropriate. The default risk is limited, if possible, by credit insurance. The
maximum default risk is reflected by the carrying amounts of the financial assets recognised in the balance
sheet. In addition, default risks also arise to a lesser extent from other contractual financial obligations of
the counterparty, such as bank balances and derivative financial instruments.
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RISK OVERVIEW TABLE
The following table summarises the risk groups described above based on their relative importance
(significance level) and any changes during the year:
↗ T.07 OVERVIEW OF RISK GROUPS
Risk Groups
Classification
Description
Significance level
Change compared
to previous year
Macroeconomic
Developments
Strategic
e.g., economic development, political
situation, geopolitical tensions
Critical
↗
Business Partners
Operational
e.g., raw material bottlenecks, supply
chain disruptions, sourcing and
logistic costs, quality problems
Critical
→
Currency Risk
Financial
e.g., exchange rate fluctuations
Critical
↗
Pandemic
Strategic
e.g., store closures, supply problems,
health of employees and customers
Critical
↘
Product and Market
Environment
Strategic
e.g., trends, customer requirements,
brand image, media reports
Material
→
Projects
Strategic
e.g., IT infrastructure, construction
projects
Material
→
Information
Technology
Operational
e.g., cyberattacks, network and
system failures
Material
→
Distribution Structure
Strategic
e.g., change in the distribution
landscape
Material
→
Sustainability
Regulatory
e.g., climate change, environmental
standards
Material
→
Working Conditions
Regulatory
e.g., labor law, human rights, German
Supply Chain Due Diligence Act
Material
→
Legal
Regulatory
e.g., trademark law, patent law,
counterfeit products
Material
→
Compliance
Regulatory
e.g., fraud, corruption
Material
→
Tax
Financial
e.g., transfer prices
Material
→
Personnel Department Operational
e.g., key positions, employee
retention, health & safety
Moderate
→
Liquidity and Interest
Rate
Financial
e.g., cash, credit lines, custody fees,
interest rate developments
Moderate
→
Default Risk
Financial
e.g., payment claims against
customers
Moderate
→
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OPPORTUNITIES
Opportunities should be identified by PUMA at an early stage, assessed and - where possible - materialised.
The operational management teams in the markets and departments are responsible for opportunity
management. In course of the budget- and mid-term process, the identified opportunities are incorporated
into PUMA’s overall planning approach. PUMA has identified and defined multiple key opportunity
categories for the current planning period and beyond.
PUMA is operating in an external environment that is characterised by increasing geo-political risks,
continued macro-economic headwinds, a muted consumer sentiment and a strong volatility in foreign
exchange rates. In addition, the speed of recovery in the important U.S. and Chinese markets remains
uncertain. In response, PUMA will continue to focus on managing short-term challenges without
compromising the mid- and long-term momentum of the brand, always prioritising sales growth and
market share gains over short-term profitability. Therefore, PUMA will continue to focus on being the best
partner to its wholesale accounts and end consumer, providing them with the best possible service.
Within our corporate strategy, we have defined the following six strategic priorities which offer significant
opportunities: elevate the brand, enhance product excellence, improve distribution quality, focus on people
first, digitalise our infrastructure and evolve sustainability. Within this overarching framework, we’re
currently placing a special focus on brand elevation, winning in the important U.S. market, and accelerating
our rebound in China. PUMA will continue to invest into the brand and sees significant opportunities to
increase market shares in all key markets. Supported by new landmark partnerships with brand
ambassadors such as Rihanna and A$AP Rocky, our lifestyle products continue to enjoy strong relevance
and demand across all age groups and regions. We have also made great progress in performance in recent
years and have significantly improved our market position across football, running, fitness, basketball, golf,
and motorsport. PUMA's product range is being continuously optimised and further developed across all
categories with a special emphasis on innovation and franchise management. In 2024, multiple
international sport events such as the UEFA Euro Cup in Germany, the Olympic & Paralympic Games in
Paris, and the Copa America in the U.S. will give us a platform to underline our performance credibility and
to increase brand heat and visibility. The major global interest in these events and sports in general will
further support the growth of the sporting goods industry. We are also seeing a continued trend toward a
healthier lifestyle, greater sports participation, and more casual clothing, which opens corresponding
opportunities for our industry. Meaningful marketing campaigns supported by relevant brand ambassadors
in all major markets are essential to anchor PUMA deeply in the hearts and minds of our consumers and
create brand relevancy and loyalty. To further elevate the brand and strengthen our consumer connection,
PUMA will also launch a big brand campaign in 2024.
In terms of distribution, PUMA will continue to focus on the wholesale channel. The strong partnerships
with our wholesale accounts offer opportunities for future market share gains and business growth.
However, we also see significant opportunities in our Direct-to-Consumer (DTC) business with a special
emphasis on PUMA’s e-commerce channels. Since 2022, we’re rolling out a dedicated PUMA shopping app
which is showing strong results and significantly better KPIs compared to our traditional puma.com e-
commerce channels. The PUMA shopping app will be expanded to other markets in the coming years and
will open further opportunities regarding customer loyalty and sales growth. New store formats and
improvements to the overall shopping experience in our own retail stores can and should also lead to
additional business opportunities. In China, we introduced a new store format that was developed by a local
agency to fit the needs of the Chinese consumers and that is showing strong results. In terms of
distribution, ensuring delivery excellence through new, state-of-the art multi-channel distribution centers
in key markets also continues to support business development.
In information technology, improved communication with wholesale accounts and consumers via digital
channels also offers opportunities – e.g., through the increased use of 3D technology. In addition, new or
more efficient processes supported by digital technology may add value or result in cost optimisation. The
digitalisation of key business processes such as product design will continue to be advanced in order to
increase efficiency and effectiveness.
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With end consumers paying more attention to sustainability, there is an opportunity to improve
sustainability-related communication and sell more sustainable products. PUMA’s strategic approach for
sustainability is centered around creating maximum possible impact within the supply chain and final
customer. Numerous initiatives are ongoing and aligned with the UN Sustainable Development Goals. For
example, in 2023 PUMA reached another milestone: 7 out of 10 products were produced from better
materials such as recycled polyester. PUMA started the "Voices of a RE:GENERATION" initiative which aims
to have constant communication with GEN-Z activists and environmentalists and give feedback to our senior
management on how PUMA can further strengthen its sustainability initiatives and communicate its
sustainability efforts to young audiences. All these initiatives will help us to evolve sustainability within
PUMA and leverage corresponding business opportunities.
OVERALL ASSESSMENT OF THE RISK AND OPPORTUNITY SITUATION
The assessment of the overall risk and opportunity situation of the Group and PUMA SE is the result of a
consolidated view of the risk and opportunity categories described above for the financial year 2023.
Following the description in our 2023 combined management report, our assessment of PUMA's overall risk
situation this year is predominantly influenced by the macroeconomic environment and volatile retail
demand specially in key markets, as described above, and is focused on the major challenges these pose.
The Management Board is currently not aware of any material risks that, either individually, on an
aggregated basis or in combination with other risks, could jeopardise the continued existence of the Group
and PUMA SE.
However, we cannot exclude the possibility that in the future influencing factors, of which we are currently
unaware or which we currently do not consider to be material, could have a negative impact on the
continued existence of the Group or PUMA SE or individual consolidated companies. Also due to the
extremely solid balance sheet and the positive business outlook, the Management Board does not see any
significant threat to the continued existence of the PUMA Group and PUMA SE.
MAIN FEATURES OF THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM AS IT
RELATES TO THE GROUP'S ACCOUNTING PROCESS
The Management Board of PUMA SE is responsible for the preparation and accuracy of the annual financial
statements, the consolidated financial statements and the combined management report of PUMA SE. The
consolidated financial statements were prepared in accordance with the International Financial Reporting
Standards that apply in the EU, the requirements of the German Commercial Code (HGB), the German Stock
Corporation Act (AktG) and the German SE Implementation Act (SEAG). Certain disclosures and amounts
are based on current estimates by the Management Board and the management.
The Management Board is responsible for maintaining and regularly monitoring a suitable internal control
and risk management system covering the consolidated financial statements and the disclosures in the
combined management report. This control and risk management system is designed to ensure the
compliance and reliability of the internal and external accounting records, the presentation and accuracy of
the consolidated financial statements, and the combined management report and the disclosures contained
therein. It is based on a series of process-integrated monitoring steps and encompasses the measures
necessary to accomplish these, such as internal instructions, organisational and authorisation guidelines,
the relevant company guidelines and handbooks, a clear separation of functions within the Group and the
dual-control principle. The adequacy and operating effectiveness of these measures are regularly reviewed
by the Group Internal Audit, Risk Management & Internal Control Department.
For monthly financial reporting and consolidation, PUMA has a group-wide reporting and controlling system
that makes it possible to regularly and quickly detect deviations from projected figures and accounting
irregularities and, where necessary, to take countermeasures.
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By means of established internal reporting channels, the risk management system can regularly identify
events that could affect the Group's economic performance and its accounting process so that it can analyse
and evaluate the resulting risks and take the necessary actions to counter them.
In preparing the consolidated financial statements and the combined management report, it is sometimes
necessary to make assumptions and estimates based on the information available at the time the financial
statements and management report are prepared that affect the amount, presentation and explanation of
recognised assets and liabilities, income and expenses, contingent liabilities, and other reportable
information.
The Audit Committee of the Supervisory Board meets on a regular basis with the independent statutory
auditors, the Management Board and the Group Internal Audit, Risk Management & Internal Control
Department to discuss the results of the internal audits and statutory audits with reference to the internal
control and risk management system as it relates to the accounting process. At the annual meeting on the
financial statements, the auditor reports to the Supervisory Board (including the Audit Committee) on the
results of the audit of the annual and consolidated financial statements.
INTERNAL CONTROL SYSTEM
PUMA's internal control system applies to all employees throughout the Group as it incorporates the
principles, procedures and measures established by PUMA Group management. All essential business
processes that support the organisational implementation of management decisions must be taken into
account.
Within the PUMA Group, the methodology of the internal control system is based on the COSO Framework,
which describes internal management and monitoring considerations for key processes within the company.
Its purpose is to support the objectives of ensuring proper financial reporting, improving the efficiency and
effectiveness of the processes and maintaining compliance with legal framework conditions.
The PUMA control framework is applied uniformly to the entire Group. The requirement here is to manage
the significant risks through appropriate control activities. The objective is to continuously improve the
internal control system and to identify specific risks and potential for improvement in the control
environment at process level in order to define appropriate recommendations for action and to
systematically track their timely implementation. Independent monitoring bodies such as the Supervisory
Board and the Audit Committee help ensure that the control environment remains up-to-date. The
Management Board of PUMA SE bears overall responsibility for the internal control system. The
Management Board regularly updates the Audit Committee of the Supervisory Board of PUMA SE. The
internal control function of the Group Internal Audit, Risk Management & Internal Control Department has
been tasked with preparing regular reports for the Management Board in order to help coordinate the
internal control system from an operational perspective. The responsibilities, tasks and processes of the
internal control system are defined in guidelines.
With regard to the PUMA control framework, the following five core components must be kept in mind:
control environment, risk assessment, control activities, information and communication, and monitoring
activities.
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↗ G.21 INTERNAL CONTROL SYSTEM
The internal control system is based on the control environment established within the PUMA Group, in that
it lays out principles for employee and management behavior within the company. The standards practiced
are underpinned by internally formalised procedures and by clear guidelines on giving instructions and
authorisations to do so. Together with external regulations, these internal standards form a control
environment that applies to all employees of the PUMA Group, supported by the relevant management and
the process manager in the entities.
As described in the previous section headed "Risk Management," the PUMA Group is also subject to a large
number of risks that may potentially impact on company goals. Risk identification and assessment is
carried out every six months in order to manage material risks at Group level. Using the resulting risk
portfolio, the objective of the internal control system is to ensure that the compensating control measures
fully correspond to the risk assessment/evaluation. In addition, the internal control system's risk
assessment also includes a large number of more detailed risks in day-to-day operations – for example,
operational activities in accordance with compliance regulations.
Control activities serve to counteract the identified business risks. In order to ensure that the control
framework is continuously up-to-date and to monitor its application in business processes, an annual
"Internal Control Self-Assessment" (ICSA) is completed by the key business units of the PUMA Group. The
internal control function ensures that the key business units - at parent and subsidiary company level - are
included in the ICSA. The managers of these business units evaluate the specified control objectives of the
PUMA Group in relation to their business area. When doing so, the existing control framework is assessed
based on internal and external guidelines and best-practice standards. Based on the responses, a level of
implementation of the controls is determined, which undergoes independent verification by the Internal
Control function and is then communicated to the Management Board using established reporting channels.
The results of the ICSA are also reported to the Audit Committee and the statutory auditors and are used by
the internal audit function of the Group Internal Audit, Risk Management & Internal Control Department in
risk-oriented audit planning.
The purpose of informing and communicating potential business risks and control activities is to help make
sound business decisions, with the information required to do so being accessible within an appropriate and
timely framework. Established communication channels are continuously used in the PUMA Group to
achieve this. The internal control function coordinates awareness training and regular coordination
meetings in order to continuously guarantee, and also strengthen, its cooperation with the Management
Board and other managers of business units.
Control
Activities
Risk
Assessment
Information &
Communication
Monitoring
Activities
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The use of a standardised software system as the basis for monitoring activities is intended to ensure the
systematic and uniform implementation of ICSA across the entire company. The internal control function
analyses the results of the ICSA and derives recommended actions, which are coordinated with the
managers of the business units and the implementation status of which is reviewed and monitored
continuously.
┌
The Management Board also monitors the effectiveness of the risk management and internal control
system in a holistic manner. Accordingly, key aspects of the systems are reviewed on a quarterly basis as
part of cyclical reporting. This is to ensure that material risks are managed with an appropriate level of
transparency, that individual issues are discussed in an appropriate form and can be tracked, and that
possible improvements to the systems are considered. Supported by an established control environment,
the continuous system monitoring, and improvement reflects the PUMA Group's open risk culture. During
the reporting period, PUMA SE was not aware of any relevant circumstances that cast doubt on the
adequacy and effectiveness of the risk management and internal control systems nor that had not been
rectified by the balance sheet date. Nevertheless, it is worth noting that even systems that have been
characterised as appropriate and effective are subject to inherent limitations. As such, it is not possible to
guarantee the complete prevention of any procedural violations and/or risks arising.
└
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OUTLOOK REPORT
GLOBAL ECONOMY
In their winter forecast dated 13 December 2023, experts at the Kiel Institute for the World Economy (Kiel
Institut für Weltwirtschaft – IfW Kiel) expect global gross domestic product (GDP) to increase by 2.9% in
2024, following growth of 3.1% in 2023. Meanwhile, inflation is rapidly on the decline, and central banks are
expected to start cutting interest rates in the first half-year of 2024. However, there are currently no
prospects of an economic upturn. A high level of uncertainty about the economic conditions is slowing
things down in the advanced economies, and fiscal incentives are tapering out. In China, economic
momentum remains subdued, in view of structural issues. According to experts at IfW Kiel, the risks to the
economic forecast for 2024 are primarily financial and political in nature. Among other things, there is
uncertainty about developments in China, where orderly consolidation in the property sector is still not
guaranteed. In addition, geopolitical risks have stemmed from the increasingly prominent differences
between China and the United States. Irrespective of this, the outcome of the upcoming presidential
elections in the United States in November harbours considerable economic and political uncertainty.
SPORTING GOODS INDUSTRY
Unless the geopolitical environment has any significant negative impact on the overall economic
environment, we expect growth in the sporting goods industry in 2024. We expect demand for sporting goods
to increase in 2024 as the trend towards increased sports activities and healthier lifestyles continues and
becomes even more significant following the COVID-19 pandemic. This applies equally to the increasing
popularity of athletic footwear and leisure/athletic apparel as an integral part of everyday fashion
("athleisure"). We also assume that major sporting events in the coming year, such as the Summer
Olympics in Paris and the UEFA Euro 2024 men's football championship in Germany, will help to support
growth in the sporting goods industry.
OUTLOOK 2024
We expect geopolitical and macroeconomic headwinds as well as currency volatility to persist in 2024. These
conditions already led to muted consumer sentiment and volatile demand in 2023 and we expect these
effects to continue in 2024, particularly in the first half of the year.
In this continued challenging environment, we are fully focused on executing our strategic priorities:
elevating the brand, increasing product excellence and improving our distribution quality - especially in the
key markets US and China. For us, 2024 is not only the year of sport with major events such as the Olympic
Games, Euro 2024 and the Copa America providing the perfect platform to showcase our strong product
innovation and credibility as a performance brand. It is also the year in which PUMA will invest in a new
global brand campaign to improve its positioning as the fastest sports brand in the world.
Supported by the continued brand momentum and despite ongoing global geopolitical and macroeconomic
challenges, PUMA expects to achieve mid-single-digit currency-adjusted sales growth and an operating
result (EBIT) in the range of € 620 million to € 700 million for the financial year 2024 (2023: € 621.6 million).
The outlook assumes that the future devaluation of the Argentine peso will be fully compensated by
corresponding price increases in Argentina.
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We expect net income (2023: € 304.9 million) to change in 2024 in line with the operating result.
As in previous years, PUMA will continue to focus on managing short-term challenges without
compromising the brand's medium- and long-term momentum. Our sales growth and market share gains
will take priority over short-term profitability. The exciting product range for 2024 and the very good
feedback from retail partners as well as consumers give us confidence for the medium- and long-term
success and continued growth of PUMA.
INVESTMENTS
Investments in fixed assets of around € 300 million are planned for 2024. The majority of these investments
will be in infrastructure in order to create the operating conditions required for the planned long-term
growth. The investments mainly concern own distribution and logistics centers, investments in the
expansion and modernisation of the Group's own retail stores and investments in IT infrastructure.
FOUNDATION FOR LONG-TERM GROWTH
The Management Board and the Supervisory Board have set long-term strategic priorities. Action plans are
being implemented in a targeted and value-oriented manner. We believe that the corporate strategy
"Forever Faster" provides the basis for mid- and long-term positive development.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
This is a translation of the German version. In case of doubt, the German version shall apply.
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↗ Consolidated Financial Statements
274
CONSOLIDATED FINANCIAL STATEMENTS
PUMA SE FOR FINANCIAL YEAR 2023
– INTERNATIONAL FINANCIAL REPORTING STANDARDS – IFRS
Consolidated Statement of Financial Position
275
Consolidated Income Statement
277
Consolidated Statement of Comprehensive Income 278
2
281
282
302
351
357
372
Consolidated Statement of Cash Flows
Statement of Changes in Equity
Notes to the Consolidated FLQDQFLDOStatements
Notes to the Consolidated Statement of
Financial Position
Notes to the Consolidated Income Statement
Additional information
Declaration by the Legal Representatives
Independent Auditor's Report
373
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275
CONSOLIDATED FINANCIAL STATEMENTS
↗ T.01 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 Dec. 2023
31 Dec. 2022
Notes
€ million
€ million
ASSETS
Cash and cash equivalents
3
552.9
463.1
Inventories
4
1,804.4
2,245.1
Trade receivables
5
1,118.4
1,064.9
Income tax receivables
22
90.1
54.0
Other current financial assets
6
94.9
137.4
Other current assets
7
270.4
235.9
Current assets
3,931.1
4,200.4
Deferred tax assets
8
296.1
295.0
Property, plant and equipment
9
685.6
592.2
Right-of-use assets
10
1,087.7
1,111.3
Intangible assets
11
530.8
506.5
Other non-current financial assets
12
83.6
58.4
Other non-current assets
12
25.6
8.8
Non-current assets
2,709.3
2,572.3
Total assets
6,640.4
6,772.7
PUMA Annual Report 2023
↗ Consolidated Financial Statements
276
31 Dec. 2023
31 Dec. 2022
Notes
€ million
€ million
LIABILITIES AND EQUITY
Current borrowings
13
145.9
75.9
Trade payables
13
1,499.8
1,734.9
Income tax liabilities
22
79.3
86.8
Current lease liabilities
10
212.4
200.2
Other current provisions
16
27.7
50.3
Other current financial liabilities
13
78.6
76.1
Other current liabilities
13
493.4
618.9
Current liabilities
2,537.2
2,843.0
Non-current borrowings
1
13
426.1
251.5
Non-current lease liabilities
10
1,020.0
1,030.3
Deferred tax liabilities
8
12.4
42.0
Pension provisions
15
22.5
22.4
Other non-current provisions
16
27.3
29.5
Other non-current financial liabilities
13
11.4
13.8
Other non-current liabilities
13
1.3
1.4
Non-current liabilities
1,520.9
1,390.9
Subscribed capital
17
150.8
150.8
Capital reserve
17
93.8
90.8
Other reserves
17
2,330.4
2,253.6
Treasury stock
17
-21.6
-23.5
Equity attributable to the shareholders of PUMA SE
2,553.4
2,471.7
Non-controlling interests
17, 28
28.9
67.1
Total equity
2,582.3
2,538.8
Total liabilities and equity
6,640.4
6,772.7
1)
In order to improve the communication of decision-relevant information, non-current borrowings are no longer
reported under other non-current financial liabilities in the 2023 reporting year, but are reported in a separate
balance sheet item. The previous year's figures have been adjusted accordingly.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
277
↗ T.02 CONSOLIDATED INCOME STATEMENT
2023
2022
Notes
€ million
€ million
Sales
19, 24
8,601.7
8,465.1
Cost of sales
24
-4,615.1
-4,562.3
Gross profit
24
3,986.6
3,902.7
Royalty and commission income
38.5
33.8
Other operating income and expenses
20
-3,403.5
-3,295.9
thereof impairment losses on trade receivables and other financial
assets
-12.2
-4.4
Operating Result (EBIT)
621.6
640.6
Financial income
21
112.7
79.4
Financial expenses
21
-256.0
-168.3
Financial result
-143.3
-88.9
Earnings before taxes (EBT)
478.3
551.7
Taxes on income
22
-117.8
-127.4
Consolidated net income of the year
360.6
424.4
attributable to:
Non-controlling interests
17, 28
55.7
70.9
Net income attributable to the shareholders of PUMA SE
304.9
353.5
Earnings per share (€)
23
2.03
2.36
Earnings per share (€) - diluted
23
2.03
2.36
Weighted average number of outstanding shares (million shares)
23
149.85
149.65
Weighted average number of outstanding shares, diluted (million shares)
23
149.87
149.66
PUMA Annual Report 2023
↗ Consolidated Financial Statements
278
↗ T.03 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2023
2022
€ million
€ million
Consolidated net income of the year before attribution
360.6
424.4
Currency translation differences
-87.6
68.5
Net gain/ loss on cash flow hedges, net after tax
-18.0
-64.5
Items expected to be reclassified to the income statement in the future
-105.6
4.0
Remeasurements of the net defined benefit liability, net after tax
-0.8
7.6
Neutral effects financial assets through other comprehensive income (FVOCI), net after tax
-0.5
-3.4
Items not expected to be reclassified to the income statement in the future
-1.3
4.2
Other comprehensive income
-106.9
8.2
Comprehensive income
253.7
432.6
attributable to:
Non-controlling interests
54.2
75.0
Shareholders of PUMA SE
199.6
357.6
PUMA Annual Report 2023
↗ Consolidated Financial Statements
279
↗ T.04 CONSOLIDATED STATEMENT OF CASH FLOWS
2023
2022
Notes
€ million
€ million
Operating activities
Earnings before tax (EBT)
478.3
551.7
Adjustments for:
Depreciation and impairment
9, 10, 11
357.5
358.7
Reversal of impairment losses
9, 10, 11
-11.9
0.0
Non-realized currency gains/losses, net
60.1
-43.6
Financial income
21
-37.8
-32.3
Financial expenses
21
100.7
54.4
Gains/losses from the sale of fixed assets
-3.9
1.0
Changes to pension provision
15
-1.5
0.5
Other non cash effected expenses/income
22.5
28.6
Gross cash flow
25
964.1
918.9
Changes in receivables and other current assets
5, 6, 7
-153.4
-209.4
Changes in inventories
4
352.1
-747.0
Changes in trade payables and other current liabilities
13
-327.9
613.1
Net cash from operational business activities
834.9
575.6
Income taxes paid
22
-181.3
-157.4
Net cash from operating activities
25
653.6
418.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
280
2023
2022
Notes
€ million
€ million
Investing activities
Purchase of property and equipment
9, 11
-300.4
-263.6
Proceeds from sale of property and equipment
14.3
1.3
Payment for other assets
12
-36.3
-10.8
Interest received
21
37.8
32.3
Net cash used in investing activities
-284.6
-240.8
Financing activities
Repayment of lease liabilities
10
-208.0
-190.0
Repayment of current borrowings
13
-59.1
-9.5
Raising of current borrowings
13
0.0
17.9
Repayment of non-current borrowings
13
0.0
-60.0
Raising of non-current borrowings
13
299.6
0.0
Dividend payments to shareholders of PUMA SE
17
-122.8
-107.7
Dividend payments to non-controlling interests
17, 28
-92.4
-73.3
Interest paid
21
-94.3
-53.8
Net cash used in financing activities
25
-277.1
-476.4
Exchange rate-related changes in cash and cash equivalents
-2.1
4.4
Change in cash and cash equivalents
89.8
-294.4
Cash and cash equivalents at beginning of the financial year
463.1
757.5
Cash and cash equivalents at the end of the financial year
3, 25
552.9
463.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
281
↗ T.05 STATEMENT OF CHANGES IN EQUITY (in € million)
Other reserves
Subscribed
capital
Capital
reserve
Revenue
reserves incl.
retained
earnings
Difference
from currency
conversion
Cash flow
hedges
Treasury stock
Shareholders'
equity
Non-
controlling
interests
TOTAL equity
1 January 2022
150.8
86.4
2,245.4
-320.6
78.1
-26.9
2,213.3
65.2
2,278.5
Consolidated net income of the year
353.5
353.5
70.9
424.4
Other comprehensive income
4.2
63.8
-63.9
4.1
4.1
8.2
Comprehensive income
357.7
63.8
-63.9
357.6
75.0
432.6
Dividends paid to shareholders of PUMA SE / non-
controlling interests
-107.7
-107.7
-75.3
-183.0
Share-based payment and Utilization/Issue of
treasury stock
4.4
3.4
7.7
7.7
Transaction with shareholders
0.9
0.9
2.2
3.1
31 December 2022/ 1 January 2023
150.8
90.8
2,496.2
-256.8
14.2
-23.5
2,471.7
67.1
2,538.8
Consolidated net income of the year
304.9
304.9
55.7
360.6
Other comprehensive income
-1.3
-85.9
-18.1
-105.3
-1.5
-106.9
Comprehensive income
303.6
-85.9
-18.1
199.6
54.2
253.7
Dividends paid to shareholders of PUMA SE / non-
controlling interests
-122.8
-122.8
-92.4
-215.3
Share-based payment and Utilization/Issue of
treasury stock
3.0
1.9
4.9
4.9
Transaction with shareholders
0.1
0.1
31 December 2023
150.8
93.8
2,677.0
-342.7
-3.9
-21.6
2,553.4
28.9
2,582.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
282
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
1. GENERAL
Under the PUMA and Cobra Golf brand names, PUMA SE and its subsidiaries are engaged in the
development and sale of a broad range of sports and sports lifestyle products, including footwear, apparel
and accessories. The company is a European stock corporation (Societas Europaea/SE) and parent company
of the PUMA Group; its registered office is on PUMA WAY 1, 91074 Herzogenaurach, Germany. The competent
registry court is in Fürth (Bavaria), the register number is HRB 13085.
The consolidated financial statements of PUMA SE and its subsidiaries (hereinafter referred to in short as
the "Group" or "PUMA") were prepared in accordance with the "International Financial Reporting Standards
(IFRS)" accounting standards issued by the International Accounting Standards Board (IASB), as they are to
be applied in the EU, and the supplementary accounting principles to be applied in accordance with Section
315e(1) of the German Commercial Code (HGB). All of the IASB standards and interpretations, as they are to
be applied in the EU, which are mandatory for financial years as of 1 January 2023, have been applied.
The items contained in the financial statements of the individual Group companies are measured based on
the currency that corresponds to the currency of the primary economic environment in which the Company
operates. The consolidated financial statements are prepared in euros (EUR or €). The presentation of
amounts in millions of euros with one decimal place may lead to rounding differences since the calculation
of individual items is based on figures presented in thousands.
The cost of sales method is used for the consolidated income statement.
The following new or amended standards and interpretations have been used for the first time in the
current financial year:
↗ T.06 NEW AND AMENDED STANDARDS AND INTERPRETATIONS
Standard
Title
First-time adoption in the current financial
year
IFRS 17 (including amendment IFRS 17)
Insurance contracts
Amendments to IAS 1
Disclosure of accounting policies
Amendments to IAS 8
Definition of accounting estimates
Amendments to IAS 12
Deferred taxes relating to assets and liabilities from a single transaction
Amendments to IFRS 17
First-time application of IFRS 17 and IFRS 9 – Comparative information
Amendments to IAS 12
International tax reform – Pillar Two model rules
PUMA Annual Report 2023
↗ Consolidated Financial Statements
283
The amendments to the standards and interpretations described below, which were to be initially adopted
as of 1 January 2023, did not materially affect the PUMA consolidated financial statements.
The IFRS 17 standard regulates the accounting treatment of insurance contracts and replaces the previously
valid transitional standard IFRS 4. The scope of application includes insurance contracts, reinsurance
contracts and investment contracts with discretionary participation features. The amendment to IFRS 17
postponed the date of first mandatory application of IFRS 17 to 1 January 2023. These amendments have no
effect on the PUMA consolidated financial statements.
The amendments to IAS 1 and IFRS Guideline Document 2 are intended to assist preparers in deciding which
accounting policies they must disclose in the financial statements. This requires an enterprise to disclose
essential information relating to accounting policies rather than just its significant accounting policies. This
change has no material effect on the PUMA consolidated financial statements.
The amendment to IAS 8 is intended to help distinguish between accounting policies and accounting-related
estimates. The definition of a change in accounting estimates has been replaced by a definition of
accounting estimates. According to the new definition, accounting-related estimates are "monetary
amounts in financial statements that are subject to measurement uncertainty". This change has no effect on
the PUMA consolidated financial statements.
The amendment to IAS 12 narrows the scope of the "initial recognition exemption" under which no deferred
tax assets or liabilities are to be recognised at the time of recognition of an asset or liability. If temporary
differences of the same amount are simultaneously deductible and taxable in a single transaction, they are
no longer covered by the exception, meaning that deferred tax assets and liabilities must be recognised.
This change does not materially affect PUMA's net assets, financial position and results of operations.
However, the amendment to IAS 12 leads to a change in the disclosures to be made in the notes to the
consolidated financial statements.
The amendment to IFRS 17 concerns companies that apply IFRS 17 and IFRS 9 simultaneously for the first
time. The amendment allows an entity to present comparative information about a financial asset in such a
way that the IFRS 9 rules on classification and measurement would have been previously applied to that
financial asset. This change has no effect on the PUMA consolidated financial statements.
The amendments to IAS 12 introduce a temporary exemption for deferred tax accounting in the framework of
the implementation of the global minimum taxation ("OECD Pillar Two Scheme"). This should help to ensure
the consistency of financial statements while facilitating implementation of the rules. Targeted disclosure
requirements will also be introduced to help investors better understand the impact of the reform on the
company, especially before the country-specific legislation implementing minimum taxation enters into
force. This change has no material effect on the PUMA consolidated financial statements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
284
NEW, BUT NOT YET MANDATORY, STANDARDS AND INTERPRETATIONS
The following standards and interpretations have been released but will only become effective in later
reporting periods and are not applied earlier by the Group:
↗ T.07 NEW, BUT NOT YET MANDATORY, STANDARDS AND INTERPRETATIONS
Standard
Title
Date of adoption*
Planned adoption
Endorsed
Amendments to IFRS 16
Lease liabilities as part of a
sale and leaseback
transaction
01/01/2024
01/01/2024
Endorsement pending
Amendments to IAS 1
Classification of liabilities as
current or non-current
01/01/2024
01/01/2024
Amendments to IAS 1
Non-current liabilities with
covenants
01/01/2024
01/01/2024
Amendments to IAS 7 and
IFRS 7
Supplier financing
agreements
01/01/2024
01/01/2024
Amendments to IAS 21
Lack of exchangeability
01/01/2025
01/01/2025
Amendments to IFRS 10 and
IAS 28
Sale or contribution of
assets
Postponed indefinitely
*
Adjusted by EU endorsement, if applicable
PUMA does not expect that these amendments will have any significant effects on the net assets, financial
position and results of operations. However, the amendments to IAS 7 and IFRS 17 concerning supplier
financing agreements expand the scope of future disclosures in the notes to the consolidated financial
statements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
285
2. SIGNIFICANT CONSOLIDATION, ACCOUNTING AND VALUATION PRINCIPLES
CONSOLIDATION PRINCIPLES
The consolidated financial statements were prepared as of 31 December 2023, the reporting date of the
annual financial statements of the PUMA SE parent company, on the basis of uniform accounting and
valuation principles according to IFRS, as applied in the EU.
GROUP OF CONSOLIDATED COMPANIES
In addition to PUMA SE, the consolidated financial statements include all subsidiaries in which PUMA SE
directly or indirectly holds existing rights that give it the current ability to direct the relevant activities. At
present, control of all Group companies is based on a direct or indirect majority of voting rights.
Associated companies are generally accounted for in the Group using the equity method. As of 31
December 2023, however, the Group does not hold any investments in associated companies.
The changes in the number of Group companies (including the parent company PUMA SE) in the financial
year 2023 were as follows:
↗ T.08 GROUP OF CONSOLIDATED COMPANIES
As of
31 Dec. 2022
100
Formation of companies
1
Disposal of companies
-1
As of
31 Dec. 2023
100
The addition to the group of consolidated companies relates to the formation of PUMA Card Services NA
LLC, USA.
The disposal in the group of consolidated companies concerns the merger of PUMA Sports SEA Trading Pte.
Ltd., Singapore within the group of consolidated companies.
The changes in the group of consolidated companies did not have a significant effect on the net assets,
financial position and results of operations.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
286
The Group companies are allocated to regions as follows:
↗ T.09 LIST OF SHAREHOLDINGS
AS OF 31 DECEMBER 2023
No.
Companies/Legal Entities
Country
City
Shareholder
Share of capital
Parent company
1.
PUMA SE
Germany
Herzogenaurach
EMEA
2.
Austria Puma Dassler Gesellschaft m.b.H.
Austria
Salzburg
direct
100%
3.
stichd austria gmbh
Austria
Salzburg
indirect
100%
4.
Puma Czech Republic s.r.o.
Czech Republic
Prague
indirect
100%
5.
PUMA DENMARK A/S
Denmark
Aarhus
indirect
100%
6.
PUMA Estonia OÜ
Estonia
Tallinn
indirect
100%
7.
PUMA Finland Oy
Finland
Helsinki
indirect
100%
8.
PUMA FRANCE SAS
France
Strasbourg
indirect
100%
9.
stichd france SAS
France
Boulogne Billancourt
indirect
100%
10.
PUMA International Trading GmbH
Germany
Herzogenaurach
direct
100%
11.
PUMA Europe GmbH
Germany
Herzogenaurach
direct
100%
12.
PUMA Sprint GmbH
Germany
Herzogenaurach
direct
100%
13.
PUMA Mostro GmbH
Germany
Herzogenaurach
indirect
100%
14.
PUMA Blue Sea GmbH
Germany
Herzogenaurach
indirect
100%
15.
stichd germany gmbh
Germany
Düsseldorf
indirect
100%
16.
PUMA UNITED KINGDOM LTD
Great Britain
London
indirect
100%
17.
PUMA PREMIER LTD
Great Britain
London
indirect
100%
18.
STICHD UK LTD
Great Britain
Mansfield
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
287
AS OF 31 DECEMBER 2023
19.
STICHD SPORTMERCHANDISING UK LTD
Great Britain
London
indirect
100%
20.
GENESIS GROUP INTERNATIONAL LIMITED
Great Britain
Manchester
direct
100%
21.
Sport Equipment Hellas S. A. of Footwear, Apparel and Sportswear u.Li.
Greece
Athens
direct
100%
1)
22.
PUMA ITALIA S.R.L.
Italy
Assago
indirect
100%
23.
STICHD ITALY SRL
Italy
Assago
indirect
100%
24.
Puma Sport Israel Ltd. In Liq
Israel
Hertzeliya
indirect
100%
25.
Puma Benelux B.V.
Netherlands
Leusden
direct
100%
26.
PUMA International Sports Marketing B.V.
Netherlands
Leusden
direct
100%
27.
stichd group B.V.
Netherlands
s-Hertogenbosch
direct
100%
28.
stichd international B.V.
Netherlands
s-Hertogenbosch
indirect
100%
29.
stichd sportmerchandising B.V.
Netherlands
s-Hertogenbosch
indirect
100%
30.
stichd B.V.
Netherlands
s-Hertogenbosch
indirect
100%
31.
stichd logistics B.V.
Netherlands
s-Hertogenbosch
indirect
100%
32.
stichd licensing B.V.
Netherlands
s-Hertogenbosch
indirect
100%
33.
PUMA NORWAY AS
Norway
Fornebu
indirect
100%
34.
PUMA POLSKA sp. z o.o.
Poland
Warsaw
indirect
100%
35.
PUMA SPORTS ROMANIA SRL
Romania
Voluntari
indirect
100%
36.
PUMA-RUS o.o.o.
Russia
Moscow
indirect
100%
37.
PUMA SPORTS DISTRIBUTORS (PTY) LTD
South Africa
Cape Town
indirect
100%
38.
PUMA SPORTS S A (PTY) LTD
South Africa
Cape Town
indirect
100%
39.
PUMA IBERIA SLU
Spain
Madrid
direct
100%
40.
STICHDIBERIA S.L.
Spain
Cornella de Llobregat
indirect
100%
41.
Nrotert AB
Sweden
Helsingborg
direct
100%
42.
PUMA Nordic AB
Sweden
Helsingborg
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
288
AS OF 31 DECEMBER 2023
43.
Nrotert Sweden AB
Sweden
Helsingborg
indirect
100%
44.
stichd nordic AB
Sweden
Helsingborg
indirect
100%
45.
MOUNT PUMA AG
Switzerland
Oensingen
direct
100%
46.
Puma Retail AG
Switzerland
Oensingen
indirect
100%
47.
stichd switzerland ag
Switzerland
Egerkingen
indirect
100%
48.
PUMA Spor Giyim Sanayi ve Ticaret A.S.
Türkiye
Istanbul
indirect
100%
49.
PUMA UKRAINE LIMITED LIABILITY COMPANY
Ukraine
Kiew
indirect
100%
50.
PUMA Middle East FZ-LLC
United Arab Emirates
Dubai
indirect
100%
51.
PUMA UAE (L.L.C)
United Arab Emirates
Dubai
indirect
100%
Americas
52.
PUMA Sports Argentina S.A. (former Unisol S.A.)
Argentina
Buenos Aires
indirect
100%
53.
PUMA Sports Ltda.
Brazil
Sao Paulo
indirect
100%
54.
PUMA Canada, Inc.
Canada
Toronto
indirect
100%
55.
PUMA United Canada ULC
Canada
Vancouver
indirect
51%
56.
PUMA CHILE SpA
Chile
Santiago
direct
100%
57.
PUMA SERVICIOS SpA
Chile
Santiago
indirect
100%
58.
PUMA México Sport, S.A. de C.V.
Mexico
Mexico City
direct
100%
59.
Importaciones RDS, S.A. de C.V.
Mexico
Mexico City
direct
100%
60.
GLOBAL LICENSE STICHD GROUP MEXICO S.A. de C.V.
Mexico
Mexico City
indirect
100%
61.
Importationes Brand Plus Licensing S.A. de C.V.
Mexico
Mexico City
indirect
100%
62.
Distribuidora Deportiva PUMA S.A.C.
Peru
Lima
indirect
100%
63.
Distribuidora Deportiva PUMA Tacna S.A.C.
Peru
Tacna
indirect
100%
64.
PUMA Sports LA S.A.
Uruguay
Montevideo
direct
100%
65.
PUMA Suede Holding, Inc.
USA
Wilmington
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
289
AS OF 31 DECEMBER 2023
66.
PUMA North America, Inc.
USA
Wilmington
indirect
100%
67.
Cobra Golf Incorporated
USA
Wilmington
indirect
100%
68.
PUMA United Aviation North America LLC
USA
Wilmington
indirect
70%
69.
PUMA United Canada Holding, Inc.
USA
Wilmington
indirect
100%
70.
PUMA United North America LLC
USA
Dover
indirect
51%
71.
Janed Canada, LLC
USA
Dover
indirect
51%
72.
stichd NA, Inc.
USA
Lewes
indirect
100%
73.
PUMA Card Services NA, LLC.
USA
Plantation
indirect
100%
Asia/Pacific
74.
PUMA Australia Pty. Ltd.
Australia
Melbourne
indirect
100%
75.
White Diamond Australia Pty. Ltd.
Australia
Melbourne
indirect
100%
76.
White Diamond Properties Pty. Ltd.
Australia
Melbourne
indirect
100%
77.
PUMA China Ltd. (彪⻢（上海）商贸有限公司)
China
Shanghai
indirect
100%
78.
stichd Trading (Shanghai) Co., Ltd. (斯梯起特贸易（上海）有限公司)
China
Shanghai
indirect
100%
79.
Guangzhou World Cat Information Consulting Services Company Ltd. (广州寰
彪信息咨询服务有限公司)
China
Guangzhou
indirect
100%
80.
World Cat Ltd. (寰彪有限公司)
China
Hong Kong
direct
100%
81.
Development Services Ltd.
China
Hong Kong
direct
100%
82.
PUMA International Trading Services Ltd.
China
Hong Kong
indirect
100%
83.
PUMA ASIA PACIFIC LTD (彪馬亞太區有限公司)
China
Hong Kong
direct
100%
84.
PUMA Hong Kong Ltd. (彪馬香港有限公司)
China
Hong Kong
indirect
100%
85.
stichd Limited
China
Hong Kong
indirect
100%
86.
PUMA Sports India Private Ltd.
India
Bangalore
indirect
100%
87.
PT PUMA Cat Indonesia
Indonesia
Jakarta
indirect
100%
88.
PT PUMA Sports Indonesia
Indonesia
Jakarta
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
290
AS OF 31 DECEMBER 2023
89.
PUMA Japan K.K. (プーマ ジャパン株式会社)
Japan
Tokyo
indirect
100%
90.
PUMA Korea Ltd. (푸마코리아 유한회사)
(South) Korea
Seoul
direct
100%
91.
Stichd Korea Ltd
(South) Korea
Incheon
indirect
100%
92.
PUMA Sports Goods Sdn. Bhd.
Malaysia
Petaling Jaya
indirect
100%
93.
STICHD SOUTHEAST ASIA SDN. BHD.
Malaysia
Kuala Lumpur
indirect
100%
94.
PUMA New Zealand Ltd.
New Zealand
Auckland
indirect
100%
95.
PUMANILA IT SERVICES INC.
Philippines
City of Makati
indirect
100%
96.
PUMA Sports Philippines Inc.
Philippines
City of Makati
indirect
100%
97.
PUMA SOUTH EAST ASIA PTE. LTD.
Singapore
indirect
100%
98.
PUMA Taiwan Sports Ltd. (台灣彪馬股份有限公司）
China (Taiwan)
Taipei
indirect
100%
99.
PUMA Sports (Thailand) Co., Ltd.
Thailand
Bangkok
indirect
100%
100.
World Cat Vietnam Sourcing & Development Services Company Limited
(CÔNG TY TNHH DͥCH VͿ PHÁT TRI͝N & NGUͭN CUNG NG WORLD CAT
VI͡T NAM)
Vietnam
Ho Chi Minh City
indirect
100%
1)
subsidiaries which are assigned to be economically 100% PUMA Group
PUMA 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
(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
from the third subsection.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
291
CURRENCY CONVERSION
In general, monetary items in foreign currencies are converted in the individual financial statements of the
Group companies at the exchange rate valid on the balance sheet date. Any resulting currency gains and
losses are immediately recognised in the income statement. Non-monetary items are converted at
historical acquisition and manufacturing cost.
The assets and liabilities of foreign subsidiaries, whose functional currency is not the euro, have been
converted to euros at the exchange rates valid on the balance sheet date. Expenses and income have been
converted at the annual average exchange rates. Any differences resulting from the currency conversion of
net assets relative to exchange rates that had changed in comparison with the previous year were adjusted
directly in other comprehensive income.
The significant conversion rates per euro are as follows:
↗ T.10 SIGNIFICANT CONVERSION RATES
2023
2022
Currency
Reporting date
exchange rate
Average
exchange rate
Reporting date
exchange rate
Average
exchange rate
USD
1.1050
1.0813
1.0666
1.0530
CNY
7.8509
7.6600
7.3582
7.0788
JPY
156.3300
151.9903
140.6600
138.0274
MXN
18.7231
19.1830
20.8560
21.1869
ARS*
892.9166
-
188.7249
-
GBP
0.8691
0.8698
0.8869
0.8528
*
Due to the application of accounting for hyperinflationary economies in Argentina, all items in the financial
statements are converted at the exchange rate applicable on the reporting date.
Argentina and Türkiye are in a hyperinflation environment. In 2022, the subsidiaries whose functional
currency is the Argentine peso or the Turkish lira applied the accounting for hyperinflationary economies in
accordance with IAS 29 for the first time, with retroactive effect from 1 January 2022. The carrying amounts
of non-monetary assets and liabilities, shareholders' equity and other comprehensive income are translated
into the unit of measurement applicable at the balance sheet date and thus adjusted to reflect price
changes. The financial statements are based on the concept of historical acquisition and/or production
costs. The exchange rate as of 31 December 2023 was used for conversion into the reporting currency, the
euro, for all items.
Gains and losses on the net monetary position are included in the financial result. In the financial year 2023,
the net profit from the monetary items amounted to € 7.7 million (previous year: € 0.9 million). The amount
also includes interest income from invested liquid funds in accordance with IAS 29.28.
The price index used for Türkiye as of 31 December 2023 was 1,859.4 (31 December 2022: 1,128.5) and is based
on the consumer price index. The general price index used for Argentina as of 31 December 2023 was
3,500.4 (31 December 2022: 1,134.3).
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ACCOUNTING AND VALUATION PRINCIPLES
FINANCIAL INSTRUMENTS
Financial instruments are classified and recognised in accordance with IFRS 9. Acquisitions and disposals of
financial assets, with the exception of trade receivables, are initially recognised on the settlement date and
are recorded at fair value.
For investments (equity instruments), IFRS 9 allows a measurement at fair value through other
comprehensive income (FVOCI) under certain conditions. If these investments, however, are disposed of or
adjusted in value, the gains and losses from these investments which were not realised up to this point are
reclassified to retained earnings in accordance with IFRS 9.
DERIVATIVE FINANCIAL INSTRUMENTS/HEDGE ACCOUNTING
In relation to the accounting of hedge relationships, PUMA made use of the option to continue applying the
rules of IAS 39 for hedge accounting.
Derivative financial instruments are recognised at fair value at the time a contract is entered into and
thereafter. At the time a hedging instrument is concluded, PUMA classifies the derivatives either as hedges
of a planned transaction and hedging variable interest flows from the promissory note loans (cash flow
hedge accounting), or as hedges of the fair value of a recognised asset or liability (fair value hedge).
At the time when the transaction is concluded, the hedging relationship between the hedging instrument
and the underlying transaction as well as the purpose of risk management and the underlying strategy are
documented. In addition, assessments as to whether the derivatives used in the hedge accounting
compensate effectively for a change in the fair value or the cash flow of the underlying transaction are
documented at the beginning of the hedging relationship and continuously thereafter.
The Group designates the spot rate for forward transactions and the intrinsic value for options contracts.
The interest component and/or fair value are excluded from the designation of the hedging instrument and
are recorded in the financial result through profit or loss.
The Group determines the existence of an economic relationship between the hedging instrument and the
hedged underlying transaction on the basis of the key valuation parameters, such as the reference interest
rate, the currency, the amount and the time of their respective cash flows (critical terms match method).
The Group uses the cumulative dollar offset method to assess whether the derivative designated in each
hedging relationship is expected to be prospectively effective and retroactively effective in relation to
offsetting changes in the cash flows of the hedged underlying transaction.
The main reason for ineffectiveness is the decline or loss of hedged transactions in these hedging
relationships.
Changes in the market value of derivatives that are intended and suitable for cash flow hedging and that
prove to be effective are adjusted directly in other comprehensive income, taking into account deferred
taxes. If there is no complete effectiveness, the ineffective part is recognised in the income statement. The
amounts recognised in other comprehensive income are recognised in the income statement during the
same period in which the hedged planned transaction affects the income statement. If, however, a hedged
future transaction results in the recognition of a non-financial asset or a liability, gains or losses previously
recorded in other comprehensive income are included in the initial measurement of the acquisition costs of
the respective asset or liability.
Changes in the market value of derivatives that qualify for and are designated as fair value hedges are
recognised directly in the consolidated income statement, together with changes in the fair value of the
underlying transaction attributable to the hedged risk. The changes in the market value of the derivatives
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and the change in the underlying transaction attributable to the hedged risk are reported in the
consolidated income statement under the item relating to the underlying transaction.
The fair values of the derivative instruments used to secure planned transactions and for hedging the
variable cash flows from the promissory note loans (cash flow hedge accounting) and to secure the fair
value of a recognised asset or liability (fair value hedge) are shown under "Other current and non-current
financial assets or liabilities".
PUMA AS LESSEE
The leases for which PUMA acts as a lessee are identified at the individual contract level. For these leases,
PUMA recognises a right-of-use asset and a respective lease liability, with the exception of short-term
leases (defined as leases with a term of no more than 12 months) and low-value lease agreements (with a
value of less than € 5,000 at contract conclusion). In the case of a short-term lease or low-value lease, the
Group recognises the lease payments on a straight-line basis over the term of the lease agreement as other
operating expense.
In addition, right-of-use assets are not recognised for intangible assets. PUMA has made use of the option
and decided not to apply IFRS 16 with regard to leases for intangible assets.
The lease liability at initial recognition is measured at the present value of the not yet paid lease payments
at the beginning of the lease agreement. The present value is calculated using the incremental borrowing
rate, as the interest rate implicit in the lease is usually not known.
A number of lease agreements, particularly for real estate properties, contain extension and termination
options. When determining agreement terms, all facts and circumstances are taken into account that offer a
financial incentive to exercise the extension option or not to exercise the termination option. The changes in
the term of a lease due to the exercise or non-exercise of such options are only taken into account for the
agreement term if they are sufficiently certain.
The lease liability is recognised as a separate line item on the consolidated balance sheet.
The right-of-use assets comprise the respective lease liability as part of initial valuation. Lease instalments
that are paid before or at the beginning of the lease are added. Lease incentives received from the lessor
are deducted and initial direct costs are included. If dismantling obligations exist with regard to the leased
assets, they are included in the valuation of the right-of-use assets. The subsequent valuation of the right-
of-use assets is at acquisition cost less accumulated depreciation and impairment losses.
The right-of-use assets are generally depreciated over the term of the lease. If the useful life of the asset
underlying the lease is shorter, this limits the depreciation period accordingly. Depreciation starts with the
commencement of the lease.
As part of the practical expedient, IFRS 16 permits dispensing with a separation between non-lease
components and lease components. With regard to land and buildings, PUMA generally does not apply the
practical expedient, meaning that the right-of-use assets relating to land and buildings only contain leasing
components. With regard to other right-of-use assets (comprising technical equipment & machines and
motor vehicles), the practical expedient is generally applied, the result of which is that the leasing
components and non-leasing components are both recognised.
The right-of-use assets are recognised as a separate line item in the consolidated balance sheet.
The rights of use are subject to the impairment regulations pursuant to IAS 36. As a general rule, the right-
of-use assets are tested for impairment (impairment test) if there is any indication that the value of the
asset could be impaired. The right-of-use assets, in particular in connection with the Group's own retail
stores, are subjected to an impairment test if there are indicators or changes in planning assumptions that
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suggest that the carrying amount of the assets may not be recoverable. To this end, a triggering event test
of all retail stores, each of which is a separate cash-generating unit, is carried out after preparation of the
annual budget planning or on an ad-hoc basis.
For the purposes of the triggering event test, the recoverable amount of the respective retail stores is
determined as a value in use using a simplified discounted cash flow method. The value in use is
determined on the basis of the planned cash flows for the retail stores according to the budget, which is
prepared on a bottom-up basis and approved by management. The forecast period is derived from the
expected useful lives of the respective retail store and is reviewed annually. Following the bottom-up
budget, revenue and cost developments are used as a basis for the remaining useful life, the growth rate of
which is based on expected nominal retail growth. Growth rates in the single-digit percentage range are
expected for all retail stores over the three-year detailed planning period. In calculating the value in use of
retail transactions, cash flows in non-inflationary countries were measured at a weighted cost of capital
rate of between 8.8% and 38.0% (previous year: between 8.2% and 25.3%) and the cash flows of retail
transactions in the two high-inflation countries with a weighted cost of capital between 31.2% and 145.0%
(previous year: between 20.0% and 62.7%). This was based on a risk-free interest rate on equivalent term
structures of 3.1% (previous year: 2.3%) and a market risk premium of 7.0% (previous year: 7.3%) are used as
a basis.
If, in the triggering event test, the carrying amount of the retail store assets exceeds the simplified value in
use, the recoverable amount of this cash-generating unit is calculated with the discounted cash flow
method using the above cost of capital rates. This is based on the individual planning of cash flows for the
retail store. If an impairment arises, the right of use is impaired first.
If there are indications that retail stores for which impairment has been recorded in the past have been able
to achieve a turnaround and that their rights of use are recoverable, the impairment is reversed up to a
maximum of the amount of amortised costs.
If there is an impairment loss or a reversal of an impairment loss, this is allocated to the central area in the
segment reporting under IFRS 8. However, the impaired assets are reported in the relevant operating
segments.
PUMA AS LESSOR
In financial year 2023, the accounting principles of IFRS 16 were applied for PUMA as a lessor for the first
time. If PUMA acts as a lessor, it is determined at the beginning of the lease whether it is a finance lease or
an operating lease. In order to classify the lease agreement, PUMA makes an overall assessment of
whether the lease essentially transfers all the risks and benefits associated with ownership of the
underlying asset. If this is the case, it is classified as a finance lease. If not, it is classed as an operating
lease. Various indicators are taken into account as part of this assessment, such as whether the lease ratio
comprises the majority of the economic useful life of the underlying asset. At our discretion, the leases in
which PUMA acts as an intermediate lessor are in most cases finance leases, as subletting always covers
most of the term of the main lease. If PUMA acts as an interim lessor, the shares in the main lease contract
and the sub-lease contract are accounted for separately.
In the case of finance leases, a net investment (receivable) equal to the discounted future rental payments
to be received is recognised in the balance sheet and reported under other assets (without inclusion in
working capital). The marginal debt interest rate is used to determine the discount, as the interest rate
underlying the lease is generally unknown. Interest income from finance leases is reported in the cash flow
from investing activities.
If the lease is classified as operating leases, the lease payments are immediately recognised in profit or loss
as rental income.
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CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash and bank balances. This also includes free cash and cash
equivalents that are invested as a fixed-term deposit with a term of up to three months. The total amount of
cash and cash equivalents is consistent with the cash and cash equivalents stated in the cash flow
statement.
Cash and cash equivalents are measured at amortised cost. They are subject to the impairment
requirements in accordance with IFRS 9 "Financial Instruments". PUMA monitors the credit risk of these
financial instruments taking into account the economic situation, external credit rating and/or premiums for
credit default swaps (CDS) of other financial institutions. The credit risk from cash and cash equivalents is
classified as immaterial, due to the relatively short terms and the investment-grade credit rating of the
counterparty, which signals a low probability of default for the financial instruments.
INVENTORIES
The Group procures inventories primarily from third parties and these are reported as goods within
inventories. To a small extent, footwear and golf clubs are produced in-house, which are reported as
finished goods together with the goods within the inventories.
Inventories are measured at acquisition or manufacturing cost or at the lower net realisable values derived
from the selling price at the balance sheet date. The acquisition cost of merchandise is determined using an
averaging method. Value adjustments are adequately recorded, depending on age, seasonality and
realisable market prices.
TRADE RECEIVABLES
Trade receivables are initially measured at the transaction price and subsequently at amortised cost with
deduction of value adjustments, in the form of a provision for risks.
When determining the provision for risks for trade receivables, PUMA uniformly applies the simplified
method in order to determine the expected credit losses over the remaining lifetime of the trade receivables
(called "lifetime expected credit losses") in accordance with the provisions of IFRS 9 "Financial
Instruments". For this, trade receivables are classified by geographic region into suitable groups with
shared credit risk characteristics. The expected credit losses are calculated using a matrix that presents
the age structure of the receivables and depicts a likelihood of loss for the individual maturity bands of the
receivables on the basis of historic credit loss events and future-based factors. The percentage rates for the
loss likelihoods are checked regularly to ensure they are up to date. If objective indications of a credit
impairment are found regarding the trade receivables of a certain customer, a detailed analysis of this
customer's specific credit risk is conducted and an individual provision for risks is established for the trade
receivables with respect to this customer. If a credit insurance is in place, it is taken into account when
determining the amount of the risk provision.
The Group assumes that the default risk of a financial asset has increased significantly if it is more than
30 days overdue.
OTHER FINANCIAL ASSETS
Other financial assets are classified based on the business model for control and the cash flows of the
financial assets. In the Group, financial assets are generally held under a business model that provides for
"holding" the asset until maturity, in order to collect the contractual cash flows. The second condition is that
the terms and conditions of the financial asset result in cash flows at specified times, which exclusively
represent repayments and interest payments on the outstanding nominal amount.
The "trading" business model is used for financial assets in the form of derivatives without a hedging
relationship. These are valued at fair value through profit or loss (FVPL).
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Non-current financial assets include rental deposits and other assets. Non-interest-bearing non-current
assets are discounted to present value if the resulting effect is significant.
INVESTMENTS
The investment recognised under non-current financial assets belongs to the category "measured at fair
value through other comprehensive income" (FVOCI), since these investments are held over the long term
for strategic reasons.
All purchases and disposals of investments are recorded on the settlement date. Investments are initially
recognised at fair value plus transaction costs. They are also recognised at fair value in subsequent periods.
Unrealised gains and losses are recognised in other comprehensive income, taking into account deferred
taxes. The gain or loss on disposal of investments is transferred to retained earnings.
The category "measured at fair value through profit or loss" (FVPL) is not used with regard to investments.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are measured at acquisition cost, net of accumulated depreciation. The
depreciation period depends on the expected useful life of the respective item. The straight-line method of
depreciation is applied. The useful life depends on the type of the assets involved. Buildings are subject to a
useful life of between ten and fifty years, and a useful life of between three to ten years is assumed for
movable assets.
Repair and maintenance costs are recorded as an expense as of the date on which they were incurred.
Substantial improvements and upgrades are capitalised to the extent that the criteria for capitalisation of an
asset item apply.
INVESTMENT PROPERTY
In the financial year 2023, accounting for investment property was applied for the first time in accordance
with IAS 40. These are accounted for in the same way as property, plant and equipment in accordance with
the cost model, with their acquisition or production costs less scheduled depreciation and any necessary
impairment losses. Depreciation is carried out on a straight-line basis and the useful lives are generally
equivalent to those of property, plant and equipment used in-house.
OTHER INTANGIBLE ASSETS (NOT INCLUDING GOODWILL)
Acquired intangible assets largely consist of concessions, intellectual property rights and similar rights.
These are measured at acquisition cost, net of accumulated amortisation. The useful life of intangible
assets is between three and ten years. Scheduled depreciation is done on a straight-line basis.
If the capitalisation requirements of IAS 38.57 "Intangible Assets" are met cumulatively, expenses in the
development phase for internally generated intangible assets are capitalised at the time they arise. In
subsequent periods, internally generated intangible assets and acquired intangible assets are measured at
cost less accumulated amortisation and impairment losses. In the Group, internally generated intangible
assets are generally depreciated on a straight-line basis over a useful life of 3 years.
There are also trademark rights acquired for a fee in relation to Cobra Golf. Cobra Golf, founded in 1978, has
a brand history spanning over 40 years in golf. The Cobra brand represents the core of the Golf business
area and is continued through ongoing marketing investments by the PUMA Group in the Cobra brand. Due
to the stability of the golf market and the continuation of the brand by PUMA, an indefinite useful life is
assumed for the Cobra brand.
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IMPAIRMENT OF ASSETS
Intangible assets with an indefinite useful life are not amortised according to schedule but are subjected to
an annual impairment test. Property, plant and equipment, right-of-use assets, and other intangible assets
with finite useful lives are tested for impairment if there is any indication of impairment in the value of the
asset concerned. In order to determine whether there is a requirement to record the impairment of an
asset, the recoverable amount of the respective asset (the higher amount of the fair value less costs to sell
and value in use) is compared with the carrying amount of the asset. If the recoverable amount is lower than
the carrying amount, the difference is recorded as an impairment loss. The test for impairment is
performed, if possible, at the level of the respective individual asset, otherwise at the level of the cash-
generating unit. Goodwill, on the other hand, is tested for impairment only at the level of a group of cash-
generating units. If it is determined within the scope of the impairment test that an asset needs to be
impaired, then the goodwill, if any, of the group of cash-generating units is written down initially and, in a
second step, the remaining amount is distributed proportionately over the remaining assets within the
application scope of IAS 36. If the reason for the recorded impairment no longer applies, a reversal of
impairment loss is recorded to the maximum amount of the amortised costs. There is no reversal of an
impairment loss for goodwill.
The recoverable amount is primarily calculated using the discounted cash flow method. For determining the
fair value less costs to sell and value in use, the expected cash flows are based on corporate planning data.
Expected cash flows are discounted using an interest rate in line with market conditions. As part of the fair
value determination less cost to sell, no special synergies of cash-generating units are taken into account,
and corporate planning data is adjusted to the assumptions of market participants, if required. Moreover,
there is a difference between the fair value less costs to sell and the value in use because the costs to sell
are also taken into account.
Trademarks with an indefinite useful life are subjected to an impairment test based on the relief from
royalty-method during the financial year or when the occasion arises. If there is evidence that the
underlying Cobra business is insufficiently profitable, the trademark is not only valued individually using the
relief from royalty-method, but the recoverable amount of the cash-generating units to which the trademark
is attributable is determined.
See chapter 11 for further details, in particular regarding the assumptions used for the calculation.
BORROWINGS, OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES
In general, these items are recognised at fair value, taking into account transaction costs, and subsequently
recognised at amortised cost. Non-interest or low-interest-bearing liabilities with a term of at least one
year are recognised at present value, taking into account an interest rate in line with market conditions, and
are compounded until their maturity at their repayment amount.
The "trading" business model is used for financial liabilities in the form of derivatives without a hedge
relationship. These are valued at fair value through profit or loss (FVPL).
Current borrowings also include those long-term loans that have a maximum residual term of up to one year.
PUMA offers its suppliers a supplier financing programme. This is reverse factoring, the financing
conditions of which are also linked to the achievement of sustainability targets by the suppliers in most
cases. Participation in the programme is voluntary for the suppliers and helps them to already pre-finance
the supplier invoices to PUMA from one of the partner banks against an interest discount significantly
before the customary payment date. PUMA is not affected by the participation of the suppliers in the
supplier financing programme (in particular no changes to the payment terms, no changes to the payment
methods and/or no changes to the original contractual conditions). Accordingly, the liabilities are recognised
in the balance sheet as trade payables, and cash outflows are allocated to the cash inflow from operating
activities in the cash flow statement.
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PROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS
In addition to defined benefit plans, some companies apply defined contribution plans, which do not result in
any additional pension commitment other than the current contributions. The pension provision under
defined benefit plans is generally calculated using the projected unit credit method. This method takes into
account not only known pension benefits and pension rights accrued as of the reporting date, but also
expected future salary and pension increases. The defined benefit obligation (DBO) is calculated by
discounting expected future cash outflows at the rate of return on senior, fixed-rate corporate bonds. The
currencies and maturity periods of the underlying corporate bonds are consistent with the currencies and
maturity periods of the obligations to be satisfied. In some of the plans, the obligation is accompanied by a
plan asset. In that case, the pension provision shown is reduced by the plan asset.
Details regarding the assumed life expectancy, the mortality tables used and other assumptions are shown
in chapter 15.
OTHER PROVISIONS
Provisions for the expected expenses from warranty obligations pursuant to the respective national sales
contract laws are recognised at the time of sale of the relevant products, according to the best estimate in
relation to the expenditure needed in order to fulfil the Group's obligation.
Provisions are also made to account for onerous contracts. An onerous contract is assumed to exist where
the unavoidable costs for fulfilling the contract exceed the economic benefit arising from this contract.
MANAGEMENT INCENTIVE PROGRAMMES
PUMA uses cash-settled share-based payments, share-based payments settled in cash or equities, and key
performance indicator-based long-term incentive programmes. The share-based payments settled in cash
or equities are accounted for in the same way as cash-settled share-based payments.
Detailed information on the management incentive programmes is presented in Chapter 18.
RECOGNITION OF SALES
The Group recognises sales from the sale of sporting goods. The sales are measured at fair value of the
consideration to which the Group expects to be entitled from the contract with customers, taking into
account returns, discounts and rebates. Amounts collected on behalf of third parties (such as VAT) are not
included in sales. The Group records sales at the time when PUMA fulfils its performance obligation to
customers and has transferred the right of disposal over the product to customers.
The Group sells footwear, apparel and accessories both to wholesalers and directly to customers through its
own retail activities and online sales channels. Meanwhile, the sales-related warranty services cannot be
purchased separately and do not lead to services that go beyond the assurance of the specifications at the
time of the transfer of risk. Accordingly, the Group records warranties in the balance sheet in accordance
with IAS 37 "Provisions, contingent liabilities and contingent assets".
In the case of sales of products to wholesalers, the sales revenue is recorded at the date on which the right
of disposal over the products is transferred to customers, in other words, when the products have been
shipped to the specific location of the wholesaler (delivery). After delivery, the wholesaler bears the
inventory risk and has full right of disposal over the manner and means of distribution and the selling price
of the products. In the case of sales to end customers in the Group's own retail stores, the sales are
recorded at the date when the right of disposal over the products is transferred to the end customer, in
other words, the date on which the end customer buys the products in the retail store. The payment of the
purchase price is due as soon as the customers purchase the products. In the case of sales of goods
through our own online sales channels, sales are realised when the end customers have accepted the goods
and the power of disposal over the goods has been passed to the end customer. The payment terms applied
correspond to the standard industry payment terms for each country.
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Under certain conditions and according to the contractual stipulations, customers have the option to
exchange products or return them for a credit. The amount of the expected returns is estimated on the basis
of past experience and is deducted from sales in the form of a liability based on refund obligations. The
asset value of the right arising from the product return claim is recorded under inventories and leads to a
corresponding reduction of cost of sales.
ROYALTY AND COMMISSION INCOME
The Group recognises license and commission income from the out-licensing of trademark rights to third
parties in accordance with IFRS 15 Revenue from contracts with customers. Income from royalties is
recognised in the income statement in accordance with the invoices to be submitted by the licensees. In
certain cases, values must be estimated in order to permit accounting on an accrual basis. Commission
income is invoiced if the underlying purchase transaction is classified as realised.
ADVERTISING AND PROMOTIONAL EXPENSES
Advertising expenses are recognised in the income statement at the time they are incurred. In general,
promotional expenses stretching over several years are recognised as an expense over the contractual term
on an accrual basis. Any expenditure surplus exceeding the economic benefit that results from this
allocation of expenses after the balance sheet date is recognised in the financial statements in the form of
an impairment of assets and, if necessary, a provision for anticipated losses. If promotional and advertising
contracts provide for additional payments when predefined targets are achieved (e.g. medals,
championships), which cannot be predicted exactly in terms of time and amount, they are recognised in full
in profit or loss at the relevant date.
FINANCIAL RESULT
The financial result includes interest income from financial investments and interest expenses from loans,
along with interest income and expenses in connection with derivative financial instruments. Financial
results also include interest expenses from lease liabilities as well as discounted, non-current liabilities
associated with acquisitions and those arising from the valuation of pension commitments, in addition to
interest income from finance leases.
Exchange rate effects that can be directly allocated to an underlying transaction are shown in the respective
income statement item.
INCOME TAXES
Current income taxes are determined in accordance with the tax regulations of the respective countries
where the individual Group companies conduct their operations.
PUMA management regularly assesses individual tax issues to determine whether there is scope for
interpretation in view of existing tax regulations. If appropriate, these issues are taken into account in
income tax liabilities or deferred taxes. The income tax assessment is generally carried out at the level of
the individual case, taking into account any possible interactions. Appropriate balance sheet provisions have
been made for potential risks from uncertain tax positions, taking into account IFRIC 23.
DEFERRED TAXES
Deferred taxes resulting from temporary valuation differences between the IFRS and tax balance sheets of
individual Group companies and from consolidation procedures, which are levied by the same taxation
authority and can be netted, are charged to each taxable entity and recognised either as deferred tax assets
or deferred tax liabilities.
Deferred tax assets may also include claims for tax reductions that result from the expected utilisation of
existing losses carried forward to subsequent years and which is likely to materialise. Deferred tax assets
or liabilities may also result from accounting treatments that do not affect the income statement.
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Deferred tax assets are recognised only to the extent that the respective tax advantage is likely to
materialise.
ESTIMATION UNCERTAINTY
The preparation of the consolidated financial statements requires some assumptions and estimates that
have an impact on the measurement and presentation of the recognised assets and liabilities, income and
expenses, and contingent liabilities. The assumptions and estimates are based on premises, which in turn
are based on currently available information. In individual cases, the actual values may deviate from the
assumptions and estimates made. Consequently, future periods involve a risk of adjustment to the carrying
amount of the assets and liabilities concerned. If the actual development differs from the expectation, the
premises and, if necessary, the carrying amounts of the relevant assets and liabilities are adjusted with an
effect on profit or loss.
All assumptions and estimates are continuously reassessed. They are based on historical experiences and
other factors, including expectations regarding future global and industry-related trends that appear
reasonable under the current circumstances. Assumptions and estimates mainly relate to the valuation of
goodwill and trademarks, inventories, liabilities from refund obligations, taxes and leases in which PUMA is
the lessee. The most significant forward-looking assumptions and sources of estimation and uncertainty as
of the reporting date concerning the above-mentioned items are discussed below.
Goodwill and brands
A review of the impairment of goodwill is based on the calculation of the value in use as a leading valuation
concept. In order to calculate the value in use, the Group must estimate the future cash flows from those
cash-generating units to which the goodwill is allocated. To this end, the data used were from the three-
year plan, which is based on forecasts of the overall economic development and the resulting industry-
specific consumer behaviour. Another key assumption concerns the determination of an appropriate
interest rate for discounting the cash flow to present value (discounted cash flow method). The relief from
royalty-method is used to value brands. See chapter 11 for further details, in particular regarding the
assumptions used for the calculation.
Inventories
Inventories are measured at acquisition or manufacturing cost or at the lower net realisable values derived
from the selling price at the balance sheet date. Value adjustments are adequately recorded, depending on
age, seasonality and realisable market prices. Further details on the inventory valuation are provided in
chapter 4.
Liabilities from refund obligations
The Group recognises sales from the sale of sporting goods. The sales are measured at fair value of the
consideration to which the Group expects to be entitled from the contract with customers, taking into
account returns, discounts and rebates. As customers have the opportunity to exchange goods under
certain conditions and in accordance with the contractual agreements, the amount of expected return
deliveries is estimated on the basis of experience. The accrual of sales takes place via the liability from
refund obligations.
Taxes
Tax items are determined taking into account the various prevailing local tax laws and the relevant
administrative opinions and, due to their complexity, may be subject to different interpretations by persons
subject to tax on the one hand and the tax authorities on the other hand. Differing interpretations of tax laws
may result in subsequent tax payments for past years; these are included based on the assessment of the
management, using the most probable amount or the expected value for the individual case.
The recognition of deferred taxes requires that estimates and assumptions be made concerning future tax
planning strategies as well as expected dates of occurrence and the amount of future taxable income. The
taxable income from the relevant corporate planning is derived for this assessment. It takes into account
PUMA Annual Report 2023
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the past financial position and the business development expected in the future. Deferred tax assets are
recorded in the event of companies incurring a loss only if it is highly probable that future positive results
will be achieved. See Chapter 8 for further information.
PUMA as lessee
The measurement of lease liabilities under leases in which PUMA is the lessee is based on assumptions for
the discount rates used, the lease term and the determination of fixed lease payments. To determine the
present value of future minimum lease payments, PUMA uses country- and currency-specific interest rates
on borrowings with compatible terms. In addition to the basic lease period, the Group includes extension
options in the determination of the lease term if management is sufficiently certain that such options will be
exercised after taking into account all facts and circumstances. The fixed lease payments also include firmly
agreed upon minimum amounts for agreements with a predominantly variable lease amount.
DISCRETIONARY DECISIONS
The preparation of the consolidated financial statements requires discretionary decisions relating to the
application of accounting methods and the amounts of assets, liabilities, income and expenses reported.
Information on the application of accounting policies that have the most material impact on the amounts
recorded in the financial statements can be found in the following notes:
Evaluation of the control of companies with non-controlling interests
The determination as to whether the Group controls the companies with non-controlling interests is
presented in chapter 28, Information on non-controlling interests.
PUMA as lessee
The accounting for leases in which PUMA is the lessee includes discretionary decisions, in particular in
relation to the term of the lease agreements with regard to determining whether the exercise of extension
options is sufficiently certain.
Some real estate leases contain extension options that can only be exercised by PUMA and not by the lessor.
If possible, the Group seeks to include extension options when concluding new leases in order to ensure
operational flexibility. On the date of provision, the Group assesses whether it is sufficiently certain that the
extension options will be exercised. The assessment is carried out individually for each contract and takes
into account the amount of the company's own investments and the possibility of changing macroeconomic
conditions in the future. If significant events or significant changes occur during the term of the contract
that are within PUMA's control, it will be reassessed as to whether it is sufficiently certain that the extension
option will be exercised.
Significant discretionary decisions are made in the subsequent valuation of rights of use for retail stores in
the context of assessing the existence of an impairment and determining the impairment requirement.
Among other things, assumptions are made about the duration of the lease, the future economic
development and profitability of the retail stores, and also the underlying interest rate.
PUMA Annual Report 2023
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NOTES TO THE CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
3. CASH AND CASH EQUIVALENTS
As of 31 December 2023, the Group has € 552.9 million (previous year: € 463.1 million) in cash and cash
equivalents. This includes bank balances, including short-term financial investments with an original term
of up to three months. The average effective interest rate of the financial investments was 1.1% (previous
year: 1.7%) for countries without hyperinflation. In countries with hyperinflation, the average effective
interest rate of financial investments was 40.9% (previous year: 33.4%). Due to currency exchange controls,
transfer restrictions of € 45.6 million (previous year: € 93.3 million) were placed on the cash and cash
equivalents reported.
4. INVENTORIES
Inventories are allocated to the following main groups:
↗ T.11 INVENTORIES (in € million)
2023
2022
Goods/inventory and finished goods
Footwear
625.9
750.2
Apparel
420.8
519.0
Accessories/Other
216.0
266.4
Raw materials, consumables and supplies
34.9
46.8
Prepayments made
2.9
3.2
Goods in transit
458.7
592.6
Inventory adjustments related to returns
45.2
66.9
Total
1,804.4
2,245.1
The raw materials, consumables and supplies mainly relate to raw materials for the production of golf clubs
and footwear.
The table shows the carrying amounts of the inventories net of value adjustments. Of the value adjustments
in the amount of € 157.1 million (previous year: € 217.0 million) approx. 64.3% (previous year: approx. 67.5%)
were recognised as an expense under cost of sales in financial year 2023. The volume of inventories
recorded as an expense during the period mainly includes the cost of sales shown in the consolidated
income statement.
The inventory adjustments related to returns represents the historical acquisition or production costs of the
inventories for which a return is expected.
PUMA Annual Report 2023
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5. TRADE RECEIVABLES
The trade receivables are broken down as follows:
↗ T.12 TRADE RECEIVABLES (in € million)
2023
2022
Trade receivables, gross
1,183.4
1,122.8
Less provision for risks
-65.0
-57.9
Trade receivables, net
1,118.4
1,064.9
The change in the provision for risks for financial assets in the "trade receivables" class measured at
amortised cost relates to receivables in connection with revenues from contracts with customers and has
developed as follows:
↗ T.13 CHANGE OF RISK PROVISIONS FOR TRADE RECEIVABLES (in € million)
2023
2022
Status of provision for risks as of 1 January
57.9
58.7
Exchange rate differences
-1.6
0.4
Additions
26.7
20.3
Utilization
-3.8
-5.6
Reversals of unused provision for risks
-14.3
-15.8
Status of provision for risks as of 31 December
65.0
57.9
The age structure of the trade receivables is as follows:
↗ T.14 AGE STRUCTURE 2023 (in € million)
overdue
2023
Total
Not due
0-30
days
31-90
days
90-180
days
Over 180
days
Gross carrying amount -
Trade receivables
1,183.4
952.3
92.4
83.4
14.1
41.4
Provision for risks
-65.0
-16.4
-4.0
-8.2
-4.5
-31.9
Net carrying amount -
Trade receivables
1,118.4
935.8
88.4
75.2
9.6
9.5
Expected loss rate
1.7%
4.3%
9.8%
32.0%
77.1%
PUMA Annual Report 2023
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↗ T.15 AGE STRUCTURE 2022 (in € million)
overdue
2022
Total
Not due
0-30
days
31-90
days
90-180
days
Over 180
days
Gross carrying amount -
Trade receivables
1,122.8
986.7
58.5
26.4
11.6
39.7
Provision for risks
-57.9
-21.2
-3.7
-2.7
-2.7
-27.6
Net carrying amount -
Trade receivables
1,064.9
965.5
54.8
23.7
8.9
12.1
Expected loss rate
2.1%
6.3%
10.2%
23.6%
69.6%
With respect to the net carrying amounts of trade receivables, PUMA assumes that the debtors will satisfy
their payment obligations or that, in the event of a default, the net carrying amount will be covered by
existing credit insurance. There are no significant risk concentrations as the customer base is very broad
and there are no correlations.
6. OTHER CURRENT FINANCIAL ASSETS
Other current financial assets are broken down as follows:
↗ T.16 OTHER CURRENT FINANCIAL ASSETS (in € million)
2023
2022
Fair value of derivative financial instruments
34.5
115.9
Lease receivables
14.9
0.0
Other financial assets
45.6
21.6
Total
94.9
137.4
The amount shown is due within one year. The fair value corresponds to the carrying amount.
PUMA Annual Report 2023
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7. OTHER CURRENT ASSETS
Other current assets are broken down as follows:
↗ T.17 OTHER CURRENT ASSETS (in € million)
2023
2022
Prepaid expense relating to the subsequent period
98.3
86.2
Other receivables
172.1
149.8
Total
270.4
235.9
The amount shown is due within one year. The fair value corresponds to the carrying amount.
Other receivables mainly comprise receivables relating to VAT of € 98.9 million (previous year: € 97.9 million)
and other taxes of € 25.6 million (previous year: € 30.3 million).
8. DEFERRED TAXES
Deferred taxes relate to the items shown below:
↗ T.18 DEFERRED TAXES
1 (in € million)
2023
2022
Tax loss carryforwards
76.9
57.5
Inventories
74.5
90.8
Remaining current assets
13.5
13.5
Non-current assets
56.3
37.6
Lease liabilities (current and non-current)
290.8
289.6
Provisions and other liabilities
118.1
142.6
Deferred tax assets (before netting)
630.1
631.6
Current assets
17.4
37.6
Intangible assets
42.1
44.1
Right-of-use assets
258.2
260.5
Remaining non-current assets
24.6
32.4
Provisions and other liabilities
4.1
4.0
Deferred tax liabilities (before netting)
346.4
378.5
Deferred tax assets, net
283.7
253.1
1
In order to better provide decision-relevant information, the data – including the previous year's figures – has been
adjusted.
As of 31 December 2023, tax losses carried forward amounted to a total of € 447.9 million (previous year:
€ 360.7 million). Deferred tax assets were recognised for these items in the amount at which the associated
tax advantages are likely to be realised in the form of future profits for income tax purposes. In financial
year 2023, no deferred tax items were recognised for the losses carried forward in the amount of
PUMA Annual Report 2023
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€ 102.9 million (previous year: € 93.5 million), of which € 94.5 million (previous year: € 88.2 million) are
vested. The remaining tax losses carried forward, for which no deferred tax items were recognised, in the
amount of € 8.3 million (previous year: € 5.3 million) will expire within the next six years
1.
In addition, no deferred tax items were recognised for temporary differences in the amount of € 27.0 million
(previous year: € 22.6 million) because they were not expected to be realised as of the balance sheet date.
For Group companies that achieved a negative tax result in this or the previous financial year, a total of
deferred tax assets in the amount of € 157.1 million were recognised after deduction of any deferred tax
liabilities (previous year: € 70.0 million) as sufficiently positive tax results can be expected in the future on
the basis of the relevant projections.
No deferred taxes on retained profits at subsidiaries were recognised where these gains are to be
reinvested on an ongoing basis and there is no intention to make a distribution in this respect.
Deferred tax assets and liabilities are netted if they relate to a taxable entity and can in fact be netted.
Accordingly, they are shown in the balance sheet as follows:
↗ T.19 DEFERRED TAX ASSETS AND LIABILITIES (in € million)
2023
2022
Deferred tax assets
296.1
295.0
Deferred tax liabilities
12.4
42.0
Deferred tax assets, net
283.7
253.1
The changes in deferred tax assets (net) were as follows:
↗ T.20 MOVEMENT OF DEFERRED TAXES (in € million)
2023
2022
Deferred tax assets, net as of 1 January
253.1
231.1
Recognition in the income statement
22.8
25.1
Adjustment related to remeasurements of the net defined benefit liability,
recognised in other comprehensive income
0.2
-2.5
Adjustment related to the market value of hedging contracts,
recognised in other comprehensive income
10.1
-0.7
Currency exchange effects
-2.5
0.0
Deferred tax assets, net as of 31 December
283.7
253.1
1 In order to better provide decision-relevant information, the data – including the previous year's figures – has been adjusted.
PUMA Annual Report 2023
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307
9. PROPERTY, PLANT AND EQUIPMENT
The development of property, plant and equipment is shown in the following tables:
↗ T.21 MOVEMENTS PROPERTY, PLANT & EQUIPMENT 2023 (in € million)
Real Estate
Technical
equipment and
machines
Other equipment,
factory and office
equipment
Payments on
account and assets
under construction
Total
Purchase costs as of
1 January 2023
175.2
170.8
706.2
75.1
1,127.3
Additions
23.9
16.6
118.4
66.5
225.4
Disposals
-4.8
-0.4
-41.0
-2.8
-49.0
Transfers
0.1
39.7
2.2
-42.3
-0.4
Currency changes
-5.0
-4.1
-32.6
-1.8
-43.4
As of 31 December 2023
189.5
222.5
753.2
94.8
1,260.0
Accumulated
depreciation as of
1 January 2023
-54.5
-37.3
-443.2
-0.1
-535.2
Depreciation
-6.2
-15.0
-84.4
0.0
-105.7
Disposals
3.5
0.4
38.6
0.0
42.5
Transfers
0.0
-0.3
-0.0
0.0
-0.3
Currency changes
1.2
2.5
20.3
0.1
24.2
As of 31 December 2023
-56.0
-49.7
-468.7
0.0
-574.4
Net carrying amount as
of 31 December 2023
133.5
172.8
284.6
94.8
685.6
PUMA Annual Report 2023
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↗ T.22 MOVEMENTS PROPERTY, PLANT & EQUIPMENT 2022 (in € million)
Real Estate
Technical
equipment and
machines
Other equipment,
factory and office
equipment
Payments on
account and assets
under construction
Total
Purchase costs as of
1 January 2022
168.6
145.2
574.1
42.1
930.0
Additions
0.9
6.8
112.7
79.5
199.9
Disposals
-0.2
-0.5
-45.0
-2.4
-48.1
Transfers
-4.2
12.8
44.9
-44.8
8.5
Currency changes
10.1
6.5
19.6
0.8
37.0
As of 31 December 2022
175.2
170.8
706.2
75.1
1,127.3
Accumulated
depreciation as of
1 January 2022
-47.0
-19.5
-391.1
0.0
-457.6
Depreciation
-6.0
-9.0
-78.7
0.0
-93.7
Disposals
0.1
0.4
43.6
0.0
44.2
Transfers
0.1
-4.1
-0.0
-0.1
-4.2
Impairment
0.0
0.0
-0.6
0.0
-0.6
Currency changes
-1.7
-5.2
-16.4
0.0
-23.2
As of 31 December 2022
-54.5
-37.3
-443.2
-0.1
-535.2
Net carrying amount as
of 31 December 2022
120.7
133.5
263.1
75.0
592.2
Investment properties are included under real estate within property, plant and equipment with a carrying
amount of € 21.1 million (previous year: € 0.0 million) as of 31 December 2023. The fair value of investment
properties as of 31 December 2023 is € 23.3 million (previous year: € 0.0 million). This was determined by
external, independent experts who have relevant professional qualifications and current experience with the
location and type of properties to be valued. The fair value was determined on the basis of the market-
comparative approach, which reflects the most recent transaction prices for similar properties.
The rental income generated by the Group from investment properties amounted to € 0.6 million in the
financial year (previous year: € 0.0 million). Direct operating expenses for investment properties, which
generated rental income in the financial year, amounted to € 0.0 million (previous year: € 0.0 million).
PUMA Annual Report 2023
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10. LEASES
PUMA AS LESSEE
The Group rents and leases offices, warehouses, facilities, technical equipment and machinery, motor
vehicles and sales rooms for its own retail business. As a rule, the lease agreements have a term of
between one and fifteen years. Some agreements include renewal options and price adjustment clauses.
The carrying amounts for right-of-use assets recognised in the balance sheet relate to the following asset
classes:
↗ T.23 RIGHT-OF-USE ASSETS 2023 (in € million)
Real Estate –
Retail stores
Real Estate –
Warehouses & offices
Others
(technical equipment
and machines and
vehicles)
Total
Depreciation
107.1
89.7
12.2
209.0
Additions
174.1
71.9
14.3
260.3
Net carrying amount as of
31 December 2023
464.2
557.7
65.7
1,087.7
↗ T.24 RIGHT-OF-USE ASSETS 2022 (in € million)
Real Estate –
Retail stores
Real Estate –
Warehouses & offices
Others
(technical equipment
and machines and
vehicles)
Total
Depreciation
110.1
82.1
10.6
202.8
Additions
187.1
188.8
29.5
405.4
Net carrying amount as of
31 December 2022
430.9
613.1
67.3
1,111.3
The following lease liabilities result:
↗ T.25 LEASE LIABILITIES (in € million)
2023
2022
Current lease liabilities
212.4
200.2
Non-current lease liabilities
1,020.0
1,030.3
Total
1,232.4
1,230.4
PUMA Annual Report 2023
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310
The amounts recognised in the income statement are as follows:
↗ T.26 RECOGNISED IN INCOME STATEMENT (in € million)
2023
2022
Depreciation of right-of-use assets incl. impairment losses and reversal of
impairment losses (included in operating expenses)
202.8
228.1
Interest expense (included in financial expenses)
46.8
38.6
Expenses short-term leases
(included in operating expenses)
11.3
10.1
Expenses leases of low-value assets
(included in operating expenses)
1.2
1.0
Expenses variable lease payments
(included in operating expenses)
35.4
29.7
Total
297.5
307.6
Variable lease payments are incurred in connection with the Group's own retail stores. These are based on
the sales amount and are therefore dependent on the overall economic development.
Total cash outflows from lease liabilities in 2023 amounted to € 254.8 million (previous year: € 228.7 million).
Due to reduced earnings prospects based on updated financial planning and estimates as well as retail
store closures, impairment expenses in the total amount of € 5.7 million were recorded for the right of use
of assets in connection with PUMA's own retail stores in financial year 2023 (previous year: € 25.4 million).
To determine the impairment, the recoverable amount was calculated for the individual retail stores. This
amounted to € 65.3 million for impaired retail stores (previous year: € 111.4 million). In the financial year,
impairment reversals in the amount of € 11.9 million (previous year: € 0.0 million) were recorded for retail
stores. There were no impairment losses or impairment reversals in the other categories of right-of-use
assets.
In 2023, PUMA entered into lease agreements that had not yet commenced by year-end. As a result, no
lease liabilities and corresponding right-of-use assets had been recognised as of 31 December 2023. Future
lease payments in connection with these agreements amount to € 2.0 million (previous year: € 2.6 million)
for the next year, € 28.2 million for years two to five (previous year: € 13.7 million) and € 48.5 million for the
subsequent period (previous year: € 8.7 million). The lease terms for these are up to 15 years.
PUMA Annual Report 2023
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311
The maturity analysis of lease liabilities is as follows:
↗ T.27 MATURITY ANALYSIS OF LEASE LIABILITIES (in € million)
2023
2022
Due within one year
255.8
234.0
Due between one and five years
679.6
665.3
Due after five years
510.4
541.2
Total (undiscounted)
1,445.8
1,440.6
Interest expense (not yet realised)
-213.4
-210.2
Total
1,232.4
1,230.4
PUMA AS LESSOR
PUMA rents out properties owned and leased as a lessor. From the lessor's point of view, these (sub)leases
are classified as operating or finance leases. In the previous year, PUMA did not rent out any properties.
The net investments from finance leases are shown as receivables in the balance sheet and are reduced by
the repayment portion included in the lease payment. The interest portion included in the lease payment is
reported as interest income in the financial result.
The maturities of the existing receivables on lease payments against third parties classified as finance
leases are as follows:
↗ T.28 MATURITY ANALYSIS OF LEASE RECEIVABLES (in € million)
2023
Due within one year
16.8
Due between one and five years
24.8
Due after five years
4.5
Total (undiscounted)
46.1
Interest income (not yet realised)
-5.4
Provision for risks
-0.5
Total
40.2
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312
The following income was recognised in the income statement in connection with leases:
↗ T.29 RECOGNISED IN INCOME STATEMENT (in € million)
2023
Operating leases
Fixed rental income
1.0
Finance leases
Variable rental income
0.4
Total rental income (included in other operating income)
1.4
Selling profit (included in other operating income)
8.0
Interest income (included in financial income)
1.2
Future lease payments from operating leases for the coming year amount to € 1.6 million (previous year:
€ 0.0 million) and to € 5.1 million for years two to five (previous year: € 0.0 million).
PUMA Annual Report 2023
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11. INTANGIBLE ASSETS
Intangible Assets mainly include goodwill, intangible assets with indefinite useful lives (e.g. brands), assets
associated with the Company's own retail activities and software licenses.
The development of intangible assets is shown in the following table:
↗ T.30 MOVEMENTS INTANGIBLE ASSETS 2023 (in € million)
Goodwill
Intangible assets
with an indefinite
useful life
Other
intangible assets
Total
Purchase costs as of 1 January 2023
289.3
151.0
341.0
781.2
Additions
0.0
0.0
74.2
74.2
Disposals
0.0
0.0
-16.8
-16.8
Transfers
0.0
0.0
0.6
0.6
Currency changes
-4.0
-4.6
-1.5
-10.1
As of 31 December 2023
285.3
146.3
397.5
829.1
Accumulated depreciation as of
1 January 2023
-46.6
-17.6
-210.5
-274.7
Depreciation
0.0
0.0
-37.0
-37.0
Disposals
0.0
0.0
11.9
11.9
Transfers
0.0
0.0
-0.1
-0.1
Currency changes
0.4
0.0
1.3
1.6
As of 31 December 2023
-46.3
-17.6
-234.5
-298.2
Net carrying amount as of
31 December 2023
239.0
128.7
163.0
530.8
PUMA Annual Report 2023
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↗ T.31 MOVEMENTS INTANGIBLE ASSETS 2022 (in € million)
Goodwill
Intangible assets
with an indefinite
useful life
Other
intangible assets
Total
Purchase costs as of 1 January 2022
291.5
143.2
276.6
711.4
Additions
0.0
0.0
64.0
64.0
Disposals
0.0
0.0
-2.4
-2.4
Transfers
0.0
0.0
1.3
1.3
Currency changes
-2.2
7.8
1.4
6.9
As of 31 December 2022
289.3
151.0
341.0
781.2
Accumulated depreciation as of
1 January 2022
-46.8
-17.6
-175.1
-239.5
Depreciation
0.0
0.0
-36.3
-36.3
Disposals
0.0
0.0
2.2
2.2
Transfers
0.0
0.0
-0.2
-0.2
Currency changes
0.2
0.0
-1.1
-1.0
As of 31 December 2022
-46.6
-17.6
-210.5
-274.7
Net carrying amount as of
31 December 2022
242.7
133.4
130.4
506.5
The item Other intangible assets includes advance payments in the amount of € 21.6 million (previous year:
€ 5.6 million).
The current amortisation of intangible assets in the amount of € 37.0 million (previous year: € 36.3 million) is
included in the other operating expenses. Of this, € 11.5 million relate to sales and distribution expenses
(previous year: € 7.7 million), € 0.1 million to expenses for product management/merchandising (previous
year: € 0.1 million), € 0.0 to development expenses (previous year: € 1.9 million), and € 25.3 million to
administrative and general expenses (previous year: € 26.5 million).
INFORMATION ON PLANNING ASSUMPTIONS FOR IMPAIRMENT TESTS
Goodwill and intangible assets with indefinite useful lives are not amortised according to schedule.
Impairment tests with regard to goodwill were performed in the past financial year using the discounted
cash flow method. The data from the three-year plan for the respective cash-generating unit or group of
cash-generating units was used as a basis for this. Planning on the level of the cash-generating units was
thereby derived from the PUMA Group's three-year plan. The following key assumptions have been made for
the PUMA Group plans:
Based on the basic assumptions regarding overall economic development, planning at Group level assumes
that geopolitical tensions will not increase any further. Under these conditions, we expect our business to
continue to grow profitably.
Planned sales growth is based on the good future growth prospects in the sporting goods industry and on
market share gains by PUMA. This is to be achieved, in particular, via the continued consistent
implementation of the Forever Faster corporate strategy and the increase in PUMA's brand heat.
The improvement in EBIT margin in the planning period is the result of a slight increase in gross profit
margin due to, for example, a higher share of own retail sales as a result of above-average growth of the e-
commerce distribution channel. Furthermore, the slightly weaker percentage increase of other operating
PUMA Annual Report 2023
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315
income and expenses compared to sales growth is also expected to contribute to the improvement of the
EBIT margin; for example, the operating requirements for planned sales growth over the coming years have
essentially been met, meaning that economies of scale can be realised.
The planning of investments and working capital is based on historical experience and is carried out in
accordance with strategic objectives.
The future tax payments are based on current tax rates in the respective country.
For periods beyond the three-year plan, an annual growth rate is determined and used to forecast future
cash flows beyond the three-year period. The assumed growth rate is based on long-term expectations of
inflation rates and does not exceed the long-term average growth rates for the business area in which the
respective cash-generating unit, or group of cash-generating units, operates.
The recoverable amount for the respective cash-generating unit or group of cash-generating units was
determined on the basis of the value-in-use. This did not result in impairment losses for any cash-
generating units.
INTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE
In connection with the Golf business unit (CPG – Cobra PUMA Golf), the Cobra brand exists as an intangible
asset with an indefinite useful life amounting to € 128.7 million (previous year: € 133.4 million). The carrying
amount of the Cobra brand is significant in comparison to the overall carrying amount of the intangible
assets with an indefinite useful life. It was assigned to the North America business segment, where the
headquarters of Cobra PUMA Golf is located. The recoverable amount of the Cobra brand was determined
using the relief from royalty-method (level 3 – see explanation in chapter 14). A discount rate of 10.6% p.a.
(previous year: 9.4% p.a.), a royalty rate of 6.0% (previous year: 8.0%) and a sustainable 2.0% growth rate
(previous year: 2.0%) was used. Cobra or CPG's three-year plan shows average revenue growth in the high
single-digit percentage range. The Management's key assumptions about improvement in the EBIT margin
in Cobra's or CPG's three-year plan are essentially in line with the fundamental assumptions in the plans at
Group level.
A reduction of the royalty rate to approximately 5.4% or a reduction of the average planned sales revenues
by approx. 10.3% would not result in any impairment requirement for the Cobra brand, and the recoverable
amount would correspond to the carrying amount.
If there is evidence that the underlying Cobra business is insufficiently profitable, the trademark is not only
valued individually using the relief from royalty-method, but the recoverable amount of the cash-generating
units to which the trademark is attributable is determined. In 2023, there were no indications of an
impairment.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
316
GOODWILL
Goodwill is allocated to the Group's identifiable groups of cash-generating units (CGUs) according to the
countries where the activities are carried out. Summarised by regions, goodwill is allocated as follows:
↗ T.32 COMPOSITION OF GOODWILL (in € million)
2023
2022
PUMA UK
1.6
1.6
Genesis
7.0
6.9
Subtotal Europe
8.7
8.5
PUMA Canada
9.7
9.9
PUMA United NA
2.0
2.1
Subtotal North America
11.7
11.9
PUMA Argentina
15.8
16.4
PUMA Chile
0.5
0.5
PUMA Mexico
12.2
10.9
Subtotal Latin America
28.5
27.8
PUMA China
2.5
2.5
PUMA Taiwan
13.3
13.7
Subtotal Greater China
15.8
16.2
PUMA Japan
35.0
38.9
Subtotal Asia/Pacific (excluding Greater China)
35.0
38.9
stichd
139.4
139.4
Total
239.0
242.7
Assumptions used in conducting the impairment tests in 2023:
↗ T.33 ASSUMPTIONS IMPAIRMENT TEST 2023
Tax rate (range)
WACC before tax
(range)
WACC after tax
(range)
Europe
19.0%
13.3%
11.1%
North America *
26.2%
12.7%
10.3%
Latin America
27.0%-35.0%
16.5%-64.1%
12.1%-51.7%
Greater China
20.0%-25.0%
12.9%-14.0%
10.5%-11.2%
Asia/Pacific (excluding Greater China) *
38.1%
16.4%
10.5%
stichd *
25.0%
13.1%
10.2%
*
The information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-
generating unit (CGU)
The tax rates used for the impairment test correspond to the actual tax rates in the respective countries.
The weighted average cost of capital (WACC) was derived on the basis of the weighted average cost of total
PUMA Annual Report 2023
↗ Consolidated Financial Statements
317
capital, taking into account a standard market capital structure (ratio of debt to equity) and including the
most important listed competitors (peer group).
In addition, a growth rate of 2.0% (previous year: 2.0%) is generally assumed. A growth rate of less than
2.0% (previous year: less than 2.0%) was applied only in justified exceptional cases, where the long-term
expectations on inflation rate for the country in which the cash-generating unit operates were lower than
the assumed growth rate; this applies, in particular, to the UK, Japan and Taiwan.
The cash-generating unit stichd includes goodwill of € 139.4 million (previous year: € 139.4 million), which is
significant in comparison to the overall carrying amount of goodwill. The recoverable amount was
determined by a value-in-use calculation with a discount rate of 10.2% p.a. (previous year: 9.4% p.a.) and a
growth rate of 2.0% (previous year: 2.0%). Stichd's three-year plan shows sales growth in the low double-
digit percentage range. In the three-year plan for stichd, a lower improvement in the EBIT margin is
expected compared to the Group, as the EBIT margin of stichd is already higher than for the Group as a
whole.
The cash-generating unit PUMA Japan includes goodwill of € 35.0 million (previous year: € 38.9 million),
which is significant in comparison to the overall carrying amount of goodwill. The recoverable amount was
determined by a value-in-use calculation with a discount rate of 10.5% p.a. (previous year: 9.4% p.a.) and a
growth rate of 1.2% (previous year: 1.0%). PUMA Japan's three-year plan shows sales growth in the high
single-digit percentage range. PUMA Japan's three-year plan shows that the company expects a strong
improvement in the EBIT margin and a return to the historical profitability level of PUMA Japan.
The following table contains the assumptions for the performance of the impairment test in the previous
year:
↗ T.34 ASSUMPTIONS IMPAIRMENT TEST 2022
Tax rate (range)
WACC before tax
(range)
WACC after tax
(range)
Europe
19.0%
12.3%-12.4%
10.4%
North America *
26.2%
11.8%
9.1%
Latin America
27.0%-34.9%
14.8%-65.4%
11.2%-58.3%
Greater China
20.0%-25.0%
12.1%-13.5%
10.0%-10.6%
Asia/Pacific (excluding Greater China) *
38.1%
14.3%
9.4%
stichd *
25.0%
12.0%
9.4%
*
The information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-
generating unit (CGU)
PUMA Annual Report 2023
↗ Consolidated Financial Statements
318
12. OTHER NON-CURRENT ASSETS
Other non-current financial and non-financial assets consist of:
↗ T.35 OTHER NON-CURRENT ASSETS (in € million)
2023
2022
Investments
21.2
21.7
Fair value of derivative financial instruments
1.4
2.5
Lease receivables
25.3
0.0
Other financial assets
35.7
34.2
Total of other non-current financial assets
83.6
58.4
Other non-current non-financial assets
25.6
8.8
Other non-current assets, total
109.1
67.2
The investments relate to the 5.32% shareholding in Borussia Dortmund GmbH & Co. Kommanditgesell-
schaft auf Aktien (BVB) with registered office in Dortmund, Germany. According to the audited IFRS
consolidated financial statements 2022/2023 of Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf
Aktien, equity as of 30 June 2023 amounted to € 282.7 million and the result of the last financial year was
€ 9.6 million.
Other financial assets mainly include rental deposits in the amount of € 31.9 million (previous year:
€ 29.8 million). The other non-current non-financial assets mainly include accruals and deferrals in
connection with promotional and advertising agreements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
319
13. LIABILITIES
The residual terms of liabilities are as follows:
↗ T.36 LIABILITIES (in € million)
2023
2022
Residual term of
Residual term of
Total
up to 1 year
1 to 5 years
over 5 years
Total
up to 1 year
1 to 5 years
over 5 years
Borrowings
572.0
145.9
426.1
0.0
327.4
75.9
251.5
0.0
Trade payables
1,499.8
1,499.8
0.0
0.0
1,734.9
1,734.9
0.0
0.0
Other liabilities*
0.0
Liabilities from other taxes
110.0
110.0
0.0
0.0
82.6
82.6
0.0
0.0
Liabilities relating to social security
10.6
10.6
0.0
0.0
10.0
10.0
0.0
0.0
Payables to employees
123.6
123.6
0.0
0.0
137.2
137.2
0.0
0.0
Liabilities from refund obligations
236.9
236.9
0.0
0.0
373.9
373.9
0.0
0.0
Liabilities from derivative financial instruments
58.2
47.7
10.5
0.0
52.4
39.5
12.9
0.0
Remaining other liabilities
45.4
43.2
2.0
0.2
54.0
51.6
2.0
0.3
Total
2,656.5
2,217.7
438.5
0.2
2,772.5
2,505.8
266.3
0.3
*
The maturity analysis on lease liabilities is presented in chapter 10.
The liabilities from refund obligations result from contracts with customers and essentially comprise obligations from customer return rights.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
320
14. FINANCIAL INSTRUMENTS
CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND ALLOCATION TO VALUATION CATEGORIES
↗ T.37 CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUE (in € million)
Measurement
categories
under IFRS 9
Carrying
amount
Fair value
Level 1
Level 2
Level 3
Carrying
amount
Fair value
Level 1
Level 2
Level 3
2023
2023
2022
2022
Assets
Cash and cash equivalents
1)AC
552.9
463.1
Trade receivables
AC
1,118.4
1,064.9
Other current financial assets
Derivatives - hedge accounting
n/a
22.8
22.8
22.8
56.1
56.1
56.1
Derivatives - no hedge accounting
2)FVPL
11.6
11.6
11.6
59.8
59.8
59.8
Lease receivables
n/a
14.9
0.0
Remaining current financial assets
AC
45.6
21.6
Other non-current financial assets
Derivatives - hedge accounting
n/a
1.4
1.4
1.4
2.5
2.5
2.5
Investments
3)FVOCI
21.2
21.2
21.2
21.7
21.7
21.7
Lease receivables
n/a
25.3
0.0
Remaining non-current financial assets
AC
35.7
34.2
Liabilities
Current borrowings
Bank liabilities
AC
15.2
15.9
Promissory note loans
AC
130.8
124.9
124.9
60.0
59.3
59.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
321
Measurement
categories
under IFRS 9
Carrying
amount
Fair value
Level 1
Level 2
Level 3
Carrying
amount
Fair value
Level 1
Level 2
Level 3
2023
2023
2022
2022
Trade payables
AC
1,499.8
1,734.9
Current lease liabilities
n/a
212.4
200.2
Other current financial liabilities
Derivatives - hedge accounting
n/a
22.6
22.6
22.6
23.6
23.6
23.6
Derivatives - no hedge accounting
2)FVPL
25.1
25.1
25.1
15.9
15.9
15.9
Remaining current financial liabilities
AC
30.9
36.5
Non-current borrowings (promissory note loans)
AC
426.1
427.4
427.4
251.5
239.5
239.5
Non-current lease liabilities
n/a
1,020.0
1,030.3
Other non-current financial liabilities
Derivatives - hedge accounting
n/a
10.5
10.5
10.5
12.9
12.9
12.9
Remaining non-current financial liabilities
AC
0.9
1.0
Total financial assets at amortised cost
1,752.6
1,583.8
Total financial liabilities at amortised cost
2,103.6
2,099.8
Total financial assets at fair value through profit
or loss
11.6
59.8
Total financial liabilities at fair value through
profit or loss
25.1
15.9
Total financial assets at FVOCI
21.2
21.7
1) AC = at amortised cost
2) FVPL = fair value through PL
3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income
PUMA Annual Report 2023
↗ Consolidated Financial Statements
322
Financial instruments that are measured at fair value in the balance sheet were determined using the
following hierarchy:
Level 1: Use of prices quoted on active markets for identical assets or liabilities.
Level 2: Use of input factors that do not involve the quoted prices stated under level 1, but can be observed
for the asset or liability either directly (i.e. as the price) or indirectly (i.e. derived from the price).
Level 3: Use of factors for the valuation of the asset or liability that are based on non-observable market
data.
Reclassification between different levels of the fair value hierarchy are recorded at the end of the reporting
period in which the change occurred.
The fair value of the investments held for strategic reasons only refers to equity instruments of the category
"fair value through OCI" (FVOCI) and is determined on the basis of level 1. The market values of the
derivative assets and liabilities as well as the fair value of the promissory note loans were determined in
accordance with level 2.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
323
The following table shows the measurement techniques used for determining Level 2 fair values for
financial instruments.
↗ T.38 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE - LEVEL 2
Type
Measurement technique
Material, non-
observable input
factors
Connection between
material, non-
observable input
factors and fair value
measurement
Currency forward
transactions
The fair values are determined on the basis of
current market parameters, i.e., reference prices
observable on the market, taking into account
forward premiums and discounts. The discounted
result of the comparison of the forward price on the
reporting date with the forward price of the
valuation date is included in the measurement.
The fair values are also checked for the
counterparty's non-performance risk. In doing this,
PUMA calculates credit value adjustments (CVA) or
debt value adjustments (DVA) on the basis of an
up/down method, taking current market information
into account, in particular the creditworthiness of
the company's business partners. No material
deviations were found, so that no adjustments were
made to the fair value determined.
Not applicable
Not applicable
Currency options
The valuation is based on Garman Kohlhagen model,
an extended version of the Black Scholes model.
Not applicable
Not applicable
Promissory note
loans
The valuation takes into account the cash value of
expected payments, discounted using a risk-
adjusted discount rate.
Not applicable
Not applicable
Interest options
The valuation is based on the Black Scholes model.
Not applicable
Not applicable
Of the fair value of the derivatives with a hedge relationship with positive market values of € 24.2 million
(previous year: € 58.6 million), € 24.5 million (previous year: € 65.9 million) related to the valuation of the
spot component. Of the fair value of the derivatives with a hedge relationship with negative market values of
€ 33.1 million (previous year: € 36.5 million), € 40.7 million (previous year: € 46.9 million) related to the
valuation of the spot component.
Cash and cash equivalents, trade receivables and other receivables have short maturities. Accordingly, as of
the reporting date, the carrying amount approximates fair value. Receivables are stated at nominal value,
taking into account deductions for default risk.
The fair values of other financial assets correspond to their carrying amount, as the interest calculation
occurs at the prevailing market interest rates on the balance sheet date. Other (current and non-current)
financial assets include € 40.3 million (previous year: € 37.8 million) that were pledged as rental deposits at
usual market rates.
Trade payables have short residual maturities; their carrying amounts therefore approximate fair value.
The remaining financial liabilities have short residual maturities; the recognised amounts therefore
approximate fair value.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
324
NET RESULT BY VALUATION CATEGORIES
The following table shows the net result by valuation category:
↗ T.39 NET GAINS/LOSSES FROM FINANCIAL INSTRUMENTS (in € million)
2023
2022
Financial assets at amortised cost (AC)
5.8
26.0
Financial liabilities at amortised cost (AC)
-89.3
-7.1
Derivatives without hedging relationship measured at fair value through profit or loss
(FVPL)
7.7
-47.6
Financial assets measured at fair value through other comprehensive income (FVOCI)
-0.5
-3.4
The net result was determined by taking into account interest income and expense, currency exchange
effects, changes in provisions for risks as well as gains and losses from disposal. It also includes effects
from the fair value measurement of derivatives without a hedging relationship.
The net result includes interest income of € 36.6 million (previous year: € 31.8 million) and interest expenses
of € 47.7 million (previous year: € 15.2 million) according to the effective interest method.
General administrative expenses include changes in risk provisions for receivables.
DISCLOSURES RELATING TO FINANCIAL RISKS
The PUMA Group is exposed to the following risks from the use of financial instruments:
• Default risk
• Liquidity risk
• Market risk
These risks and the principles of risk management are explained below.
PRINCIPLES OF RISK MANAGEMENT
The Management Board of PUMA SE is responsible for developing and monitoring risk management in the
PUMA Group. To this end, the Management Board has set up a Risk Management Committee that is
responsible for designing, reviewing and adapting the risk management system. The Risk Management
Committee regularly reports to the Management Board on its work.
The guidelines for the risk management system define the responsibilities, tasks and processes of the risk
management system. The guidelines for the risk management system and the risk management system
itself are reviewed regularly in order to be able to pick up on any changes in market conditions and PUMA's
activities and incorporate them accordingly.
The Audit Committee, on the one hand, monitors the Management Board's compliance with the guidelines
and the Group risk management processes. On the other hand, the Audit Committee monitors the
effectiveness of the risk management system with regard to the risks to which the PUMA Group is exposed.
The Internal Audit department supports the Audit Committee in its monitoring tasks. To this end, regular
audits and ad hoc audits are also carried out by the Internal Audit department. Their results are reported
directly to the Audit Committee.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
325
DEFAULT RISK
Default risk is the risk of financial losses if a customer or party to a financial instrument fails to meet its
contractual obligations. Default risk arises in principle from trade receivables and from other contractual
financial obligations of the counterparty, such as bank deposits and derivative financial instruments.
Without taking into account any existing credit insurance policies or other guarantees received, the
maximum default risk is equal to the carrying amount of the financial assets.
At the end of financial year 2023, there was no relevant concentration of default risk by customer type or
region. Default risk is mainly influenced by individual customer characteristics. In accordance with our
credit guidelines, new customers are checked for creditworthiness before we offer them our regular
payment and delivery terms. In addition, we set specific receivables limits for each customer. In particular,
the international credit insurance programme that PUMA has concluded for all major subsidiaries
contributes to risk mitigation. The creditworthiness of our customers and the limits on receivables are
monitored on an ongoing basis, which also includes requests for individual credit limits from credit
insurance providers for all customers who have external accounts that exceed a certain value limit. The
credit insurer's response to such credit limit requests always includes information on the creditworthiness.
Customers with a credit rating that does not meet the minimum requirements set may, as a rule, only
acquire products against advance payment.
Further activities to reduce default risk include retention of title clauses, and also in individual cases the
selective sale of trade receivables (without recourse) and the obtaining of bank guarantees or parent
company guarantees for our customers.
At the end of the financial year 2023, no individual customers accounted for more than 10% of trade
receivables.
The central Treasury department has a comprehensive overview of the banks involved in currency hedging
instruments and the management of cash and cash equivalents. Business with banks is focused on core
banks with the appropriate credit rating (currently a minimum rating of BBB+ or better), while maximum
risk amounts are specified for banks that have also been engaged in addition to this. The counterparty risks
resulting from this are reviewed at least once every six months.
PUMA held derivative financial instruments with a positive market value of € 35.8 million in 2023 (previous
year: € 118.3 million). The maximum default risk for an individual bank from such assets amounted to
€ 7.5 million (previous year: € 24.8 million).
In accordance with IFRS 7, the following table contains further information on the offsetting options for
derivative financial assets and liabilities. Most agreements between financial institutions and PUMA include
a mutual right to offsetting; the right to offsetting is only enforceable in the event of the default of a business
partner. Therefore, the criteria for offsetting in the balance sheet are not met.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
326
The carrying amounts of the derivative financial instruments affected by the aforementioned offsetting
agreements are shown in the following table:
↗ T.40 OFFSETTING POSSIBILITIES OF DERIVATIVE FINANCIAL INSTRUMENTS (in € million)
2023
2022
Assets
Gross amounts of financial assets recognised in the balance sheet
35.8
118.3
Financial instruments that qualify for offsetting
0.0
0.0
= Net book value of financial assets
35.8
118.3
Offsettable on the basis of framework agreements
-34.5
-50.6
Total net value of financial assets
1.3
67.7
2023
2022
Liabilities
Gross amounts of financial liabilities recognised in the balance sheet
58.2
52.4
Financial instruments that qualify for offsetting
0.0
0.0
= Net book value of financial liabilities
58.2
52.4
Offsettable on the basis of framework agreements
-34.5
-50.6
Total net value of financial liabilities
23.7
1.8
LIQUIDITY RISK
Liquidity risk is the risk that the Group may not be able to meet its financial liabilities by delivering cash or
other financial assets in accordance with the agreement. The objective of the Group in managing liquidity is
to ensure that, as far as possible, sufficient cash and cash equivalents are always available in order to meet
the payment obligations upon maturity, under both normal and strained conditions.
PUMA aims to maintain the amount of cash, cash equivalents and fixed loan commitments at a level that
covers the effects of an assumed worst-case scenario. This scenario is based on the events and financial
impact of the COVID-19 crisis in Q2 2020, which must be covered accordingly.
PUMA has confirmed credit lines amounting to a total of € 1,552.8 million (previous year: € 1,271.0 million), of
which € 986.1 million had not been used as at 31 December 2023 (previous year: € 943.7 million).
No financial liabilities were utilised from credit lines granted only until further notice.
The effective interest rate of the financial liabilities ranged from 0.0% to 1.3% (previous year: 0.0% to 0.9%).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
327
The following table shows the future cash outflows from the financial liabilities existing as at the reporting
date, as well as the contractual cash flows in connection with derivatives with a negative market value.
These are non-discounted gross amounts including expected interest payments, but exclude presentation of
the effects of offsetting:
↗ T.41 CONTRACTUAL CASH FLOWS FROM FINANCIAL LIABILITIES 2023 (in € million)
Total
2024
2025
2026 et
seq.
Non-derivative financial liabilities
Borrowings
634.0
166.9
85.1
382.0
Trade payables
1,499.8
1,499.8
Other liabilities
31.8
30.9
0.5
0.4
Derivative financial liabilities
47.0
43.8
2.2
1.0
Cash inflow derivative financial liabilities
-2,876.6
-2,397.1
-479.5
Cash outflow derivative financial liabilities
2,923.6
2,440.8
481.8
1.0
The following values were determined for the previous year:
↗ T.42 CONTRACTUAL CASH FLOWS FROM FINANCIAL LIABILITIES 2022 (in € million)
Total
2023
2024
2025 et seq.
Non-derivative financial liabilities
Borrowings
332.7
78.3
126.6
127.8
Trade payables
1,734.9
1,734.9
Other liabilities
37.5
36.5
0.8
0.2
Derivative financial liabilities
34.5
34.2
0.3
Cash inflow derivative financial liabilities
-1,905.7
-1,303.9
-601.8
Cash outflow derivative financial liabilities
1,940.2
1,338.1
602.1
1) The previous year's figures have been adjusted
MARKET RISK
Market risk is the risk that market prices, such as exchange rates, share prices or interest rates, may
change, thereby affecting the income of the Group or the value of the financial instruments held.
The aim of market risk management is to manage and control market risk within acceptable margins while
optimising returns.
To manage market risks, PUMA acquires and sells derivatives and also enters into financial liabilities. All
transactions are carried out within the framework of the Group's risk management regulations.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
328
CURRENCY RISK
PUMA is exposed to transactional foreign currency risks such that the quoted currencies used for
acquisition, disposal and credit transactions and for receivables do not match the functional currency of the
Group companies.
In financial year 2023, PUMA designated currency hedges in Cashflow Hedge Accounting in order to hedge
the amount payable of purchases denominated in USD, and converted to euros, as well as for other currency
risks resulting from internal resale to PUMA subsidiaries.
Furthermore, currency swaps and forward exchange contracts are used to hedge foreign exchange risks
when measuring intra-group loans denominated in foreign currencies.
The estimated foreign currency risks are initially subjected to a quantitative materiality test, while
simultaneously taking hedging costs into account. Material risks are then hedged, in accordance with the
Group directive, up to a hedging ratio of up to 95% of the estimated foreign currency risks from expected
acquisition and disposal transactions over the next 12 to 15 months. Forward exchange contracts and
currency options, usually with a term of around 12 months from the reporting date, are used to hedge the
foreign currency risk. For significant risks that are subject to large hedging costs, high hedging ratios can
only be achieved over shorter terms.
The summarised quantitative information about the Group's currency risk is as follows:
↗ T.43 EXPOSURE TO FOREIGN CURRENCY RISK 2023 (in € million)
as of 31 December 2023
USD
MXN
JPY
Risk from forecast transactions
-1,716.4
269.1
190.0
Balance sheet risk
-628.3
78.8
13.4
Total gross risk
-2,344.7
347.9
203.4
Hedged with currency options
18.1
0.0
-51.5
Hedged with currency forward contracts
1,933.1
-211.1
-110.3
Net risk
-393.5
136.7
41.6
↗ T.44 EXPOSURE TO FOREIGN CURRENCY RISK 2022 (in € million)
as of 31 December 2022
USD
GBP
JPY
Risk from forecast transactions
-1,665.5
104.5
205.2
Balance sheet risk
-307.1
76.6
28.3
Total gross risk
-1,972.6
181.0
233.4
Hedged with currency forward contracts
1,833.9
-171.9
-181.6
Net risk
-138.7
9.1
51.9
Currency forward contracts and the risk from forecast transactions were calculated on a one-year basis.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
329
The nominal amounts of open exchange rate-hedging transactions refer primarily to currency forward
contracts in a total amount of € 3,745.0 million (previous year: € 3,792.6 million).
The market values of open exchange rate-hedging transactions on the balance sheet date consist of:
↗ T.45 MARKET VALUE OF EXCHANGE RATE HEDGING CONTRACTS (in € million)
2023
2022
Currency forward contracts
35.5
118.3
Currency options
0.3
0.0
Currency hedging contracts, assets
35.8
118.3
Currency forward contracts
56.0
52.4
Currency options
1.2
0.0
Currency hedging contracts, liabilities
57.2
52.4
Net
-21.4
66.0
The net risk position and the average hedging rates are broken down as follows:
↗ T.46 AVERAGE HEDGING RATES
2023
2022
Current
Non-current
Current
Non-current
Currency risk
Net risk position (€ million)
1,076.5
504.2
1,167.5
508.2
Currency forward contracts
Average EUR/USD exchange rate
1.108
1.110
1.092
1.069
Average EUR/MXN exchange rate
19.978
-
21.636
-
Average EUR/JPY exchange rate
138.560
148.736
133.205
137.338
Currency options
Average EUR/USD exchange rate (Put/Call)
1.050/1.144
1.039/1.131
-
-
Average EUR/MXN exchange rate (Put/Call)
-
-
-
-
Average EUR/JPY exchange rate (Put/Call)
140.198/157.850
143.733/161.366
-
-
Currency sensitivity analysis
In order to disclose market risks, IFRS 7 requires sensitivity analysis that show the effects of hypothetical
changes in relevant risk variables on earnings and equity. The periodic effects are determined by relating
the hypothetical changes caused by the risk variables to the balance of the financial instruments held as of
the balance sheet date. The underlying assumption is that the balance as of the balance sheet date is
representative for the entire year.
Currency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a
currency which differs from the functional currency and are monetary in nature. Differences resulting from
PUMA Annual Report 2023
↗ Consolidated Financial Statements
330
the conversion of the individual financial statements to the group currency are not taken into account. All
non-functional currencies in which PUMA employs financial instruments are generally considered to be
relevant risk variables.
The currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies.
This also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also
reassessed as part of the sensitivity analysis.
The following table shows the increase or decrease of profit or loss or cash flow hedge reserve in equity in
the event of a 10% appreciation or depreciation against the euro spot price. It is assumed that all other
influencing factors, including interest rates and commodity prices, remain constant. The effects of the
forecasted operating cash flows are also ignored.
↗ T.47 SENSITIVITY ANALYSIS FOR FOREIGN EXCHANGE RATE CHANGES 2023 (in € million)
as of 31 December 2023
USD
MXN
JPY
Nominal amounts of outstanding currency forward contracts
2,413.7
-211.1
-123.7
EUR +10%
EUR +10%
EUR +10%
Equity
-151.3
17.9
-1.0
Profit or loss
2.0
-0.6
-0.1
EUR -10%
EUR -10%
EUR -10%
Equity
218.9
-11.0
-23.7
Profit or loss
-2.4
0.8
0.1
↗ T.48 SENSITIVITY ANALYSIS FOR FOREIGN EXCHANGE RATE CHANGES 2022 (in € million)
as of 31 December 2022
USD
GBP
JPY
Nominal amounts of outstanding currency forward contracts
2,428.2
-205.7
-233.8
EUR +10%
EUR +10%
EUR +10%
Equity
-186.6
7.7
13.9
Profit or loss
5.7
-0.1
0.4
EUR -10%
EUR -10%
EUR -10%
Equity
221.0
-18.8
-28.7
Profit or loss
-6.9
0.1
-0.5
Currency risks and other risk and opportunity categories are discussed in greater detail in the Combined
Management Report in the Risk and Opportunity Report.
INTEREST-RATE RISKS
The interest rate risk in the PUMA Group is primarily attributable to variable-interest borrowings. Interest
rate management is carried out centrally by the Treasury division on the basis of specified limits. Within this
framework, the division manages and monitors interest rate risk through the use of interest rate
derivatives. Transactions are only concluded with counterparties that are creditworthy. Derivatives financial
instruments must not be used for speculative purposes, but only to hedge risks related to underlying
transactions.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
331
As of 31 December 2023, € 207.5 million (previous year: € 67.5 million) of the borrowings were subject to
variable interest.
Interest rate collars were also concluded at the same amount and with the same maturity to hedge the risk
of interest rate changes for the variable interest-rate promissory note tranches in the amount of
€ 150.0 million in May 2023.
There is an economic relationship between the underlying and hedging transactions, since the terms of the
interest-rate collars correspond to those of the floating-rate loans. This applies to the nominal amount,
maturity, payment and interest adjustment dates. The underlying risk of interest rate collars is identical to
that of the hedged risk components. A hedge ratio of 1:1 has therefore been established for the hedging
relationship.
The net risk position and the average hedged interest rate are as follows:
↗ T.49 AVERAGE HEDGED INTEREST RATE
2023
Current
Non-current
Net risk position (€ million)
54.5
3.0
Interest rate risk
Average hedged interest rate in % based on current fixing (Cap/Floor)
4.7%/1.5%
As there were no significant variable interest-bearing liabilities in the previous year and no interest hedging
transactions were therefore used, the information for the previous year is not applicable.
Interest sensitivity analysis
The result in the Group depends on the development of the market interest rate level. A change in the
interest rate level would have an impact on the Group's income and equity. The analysis carried out includes
all interest-bearing financial instruments that are subject to interest rate risk.
A change in the interest rate level of 100 basis points would have the following effects on profit or loss and
the cash flow hedge reserve in equity
↗ T.50 SENSITIVITY ANALYSIS FOR INTEREST RATE RISK (in € million)
2023
+1.0%
-1.0%
Equity
0.8
0.0
Profit or loss
0.4
-1.9
As there were no significant variable interest-bearing liabilities in the previous year, no interest-rate
sensitivity analysis was prepared for the previous year.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
332
INFORMATION ON HEDGING INSTRUMENTS THAT ARE IN A HEDGING RELATIONSHIP
On the balance sheet date, the amounts relating to items designated as hedged underlying transactions with regard to exchange rate risks were as follows:
↗ T.51 DESIGNATED HEDGE ITEMS (in € million)
Change in value for the calculation of
hedge ineffectiveness
Reserve for cash flow hedges
Balance remaining in the cash flow hedging
reserve from hedging relationships to which
hedge accounting is no longer applied
as of 31 December 2023
Currency risk –
sales transactions
-8.2
19.6
0.0
Currency risk –
sourcing transactions
-5.4
-23.5
0.0
Interest rate risk
0.0
0.0
0.0
as of 31 December 2022
Currency risk –
sales transactions
-31.1
29.8
0.0
Currency risk –
sourcing transactions
188.1
-15.7
0.0
PUMA Annual Report 2023
↗ Consolidated Financial Statements
333
The amounts relating to items designated as hedging instruments have the following effects on the statement of financial position and income statement:
↗ T.52 DESIGNATED HEDGE INSTRUMENTS (in € million)
Nominal
value
Carrying amount
in the financial year 2023
Assets
Liabilities
Item in the balance
sheet, in which the
hedging instrument
is included
Changes in the
value of the
hedging
instrument,
recognized in
other
comprehensive
income
Ineffectiveness
of the hedging
instrument,
recognized in the
income
statement
Items in the
income
statement,
containing the
ineffectiveness
of the hedging
Amount
transferred
from the
hedging reserve
to the inventory
acquisition cost
Amount
reclassified
from the
hedging reserve
to the income
statement
Items in the
income
statement
affected by the
reclassification
as of 31 December 2023
Currency risk –
sales transactions
1,082.2
22.3
-6.2
other current/
non-current
financial assets/
liabilities
8.2
-
Financial
expenses
-
29.8
Sales
Currency risk –
sourcing transactions
1,996.4
2.3
-34.5
5.4
-
-12.9
-5.1
Cost of sales
Interest rate risk
150.0
0.0
0.0
0.0
-
-
0.0
Financial
expenses
in the financial year 2022
as of 31 December 2022
Currency risk –
sales transactions
1,097.7
44.0
-3.5
other current/
non-current
financial assets/
liabilities
31.1
-
Financial
expenses
-
-16.7
Sales
Currency risk –
sourcing transactions
2,082.6
21.9
-43.4
-188.1
-
91.9
144.0
Cost of sales
PUMA Annual Report 2023
↗ Consolidated Financial Statements
334
The following table shows the reconciliation of the change in equity in relation to cash flow hedges:
↗ T.53 CHANGES IN THE RESERVE FOR CASH FLOW HEDGE (in € million)
2023
2022
Reserve for cash flow hedge as of 1 January
14.2
78.1
Change in fair value
Thereof currency risk
-13.6
157.0
Thereof interest rate risk
0.0
0.0
Amount included in the acquisition cost of non-financial assets
12.9
-91.9
Amount reclassified to the income statement
Thereof currency risk
-27.5
-128.2
Thereof interest rate risk
0.0
0.0
Tax effect
10.1
-0.7
Reserve for cash flow hedge as of 31 December
-3.9
14.2
A small portion of the originally planned sourcing and sales volume in foreign currencies did not transpire,
leading to an excess of hedging transactions. Hedge accounting was terminated for those sourcing and
sales transactions that were no longer expected to transpire, and the fair value was transferred as a profit
or loss from the cash flow hedge reserve to the income statement. As soon as any highly likely sourcing or
sales transaction is no longer expected to transpire, an offsetting transaction is concluded. Across all
currency pairs, an amount of € 5.5 million (previous year: € -14.8 million) was recognised in the income
statement.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
335
15. PENSION PROVISIONS
Pension provisions result from employees' claims and, if applicable, their survivors, for benefits which are
based on the statutory or contractual regulations applicable in the respective country in the event of
invalidity, death or when a certain retirement age has been reached. Pension commitments in the PUMA
Group include both benefit- and contribution-based pension commitments and include both obligations
from current pensions and rights to pensions payable in the future. The pension entitlements are financed
by both provisions and funds.
The risks associated with the pension commitments mainly concern the usual risks of benefit-based
pension plans in relation to possible changes in the discount rate and inflation trends, and recipient
longevity. In order to limit the risks of changed capital market conditions and demographic developments,
plans with the maximum obligations were agreed or insured for new hires a few years ago in Germany and
Great Britain. The specific risk of obligations based on salary is low within the PUMA Group. The
introduction of an annual cap for pensionable salary in the Great Britain plan in 2016 covers this risk for the
highest obligations. The Great Britain plan is therefore classified as a non-salary obligation.
↗ T.54 PRESENT VALUE OF PENSION OBLIGATION 2023 (in € million)
Germany
Great Britain
Other
companies
PUMA Group
Present value of pension obligation 31 December 2023
Salary-based obligations
Annuity
0.0
0.0
8.8
8.8
One-off payment
0.0
0.0
9.1
9.1
Non-salary based obligations
Annuity
49.3
31.9
0.0
81.2
One-off payment
8.2
0.0
0.0
8.2
Total
57.5
31.9
17.9
107.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
336
The following values were determined in the previous year:
↗ T.55 PRESENT VALUE OF PENSION OBLIGATION 2022 (in € million)
Germany
Great Britain
Other
companies
PUMA Group
Present value of pension obligation 31 December 2022
Salary-based obligations
Annuity
0.0
0.0
8.6
8.6
One-off payment
0.0
0.0
9.3
9.3
Non-salary based obligations
Annuity
48.9
29.6
0.0
78.5
One-off payment
7.9
0.0
0.0
7.9
Total
56.8
29.6
17.9
104.3
The main pension arrangements are described below:
The general pension scheme of PUMA SE essentially provides for pension payments to a maximum amount
of € 127.82 per month and per eligible employee. It was closed for new members beginning in 1996. In
addition, PUMA SE provides individual commitments (fixed sums in different amounts) as well as
contribution-based individual benefits (in part from salary conversion). The contribution-based individual
benefits are insured plans. There are no statutory minimum funding requirements. The scope of obligation
for domestic pension claims amounts to € 57.5 million at the end of 2023 (previous year: € 56.8 million) and
thus comprises 53.6% of the total obligation. The fair value of the plan assets relative to domestic
obligations amounts to € 50.4 million. The corresponding pension provision amounts to € 7.1 million.
The defined benefit plan in Great Britain has not been available to new hires since 2006. This defined benefit
plan includes salary and length of service-based commitments to provide old age, invalidity and surviving
dependents' retirement benefits. In 2016, a growth cap of 1% p.a. was introduced on the pensionable salary.
Partial capitalisation of the old-age pension is permitted. There are statutory minimum funding
requirements. The obligations regarding pension claims under the defined benefit plan in the UK amount to
€ 31.9 million at the end of 2023 (previous year: € 29.6 million) and thus account for 29.7% of the total
obligation. The obligation is covered by assets amounting to € 29.7 million. The provision amounts to
€ 2.2 million.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
337
The present value of the pension obligation has developed as follows:
↗ T.56 DEVELOPMENT OF PRESENT VALUE OF PENSION OBLIGATION (in € million)
2023
2022
Present value of pension obligation 1 January
104.3
122.3
Cost of the pension obligation earned in the reporting year
2.0
2.5
Interest expense on pension obligation
4.4
1.9
Employee contributions
0.6
8.3
Benefits paid
-4.5
-3.4
Effects from transfers
0.0
0.0
Actuarial gains (-) and losses
0.1
-25.1
Currency exchange effects
0.5
-2.2
Present value of pension obligation 31 December
107.3
104.3
The changes in the plan assets are as follows:
↗ T.57 DEVELOPMENT OF PLAN ASSETS (in € million)
2023
2022
Plan assets 1 January
82.4
90.7
Interest income on plan assets
3.5
1.4
Actuarial gains and losses (-)
-0.9
-15.0
Employer contributions
1.2
1.0
Employee contributions
0.6
8.3
Benefits paid
-2.2
-2.3
Currency exchange effects
0.6
-1.7
Plan assets 31 December
85.2
82.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
338
The pension provision for the Group is derived as follows:
↗ T.58 PENSION PROVISION (in € million)
2023
2022
Present value of pension obligation from benefit plans
107.3
104.3
Fair value of plan assets
-85.2
-82.4
Financing status
22.1
21.9
Pension provision 31 December
22.1
21.9
Thereof assets
0.4
0.5
Thereof liabilities
22.5
22.4
In 2023, benefits paid amounted to € 4.5 million (previous year: € 3.4 million). Contributions in 2024 are
expected to amount to € 3.0 million. Of this, € 0.9 million is expected to be paid directly by the employer.
Employer contributions to external plan assets amounted to € 1.2 million in 2023 (previous year:
€ 1.0 million). Employer contributions in 2024 are expected to amount to € 0.8 million.
The changes in pension provisions are as follows:
↗ T.59 DEVELOPMENT OF THE PENSION PROVISION (in € million)
2023
2022
Pension provision 1 January
21.9
31.6
Pension expense
2.8
3.0
Actuarial gains (-) and losses recorded in other comprehensive income
1.0
-10.1
Employer contributions
-1.2
-1.0
Direct pension payments made by the employer
-2.3
-1.1
Transfer values
0.0
0.0
Currency exchange differences
-0.2
-0.5
Pension provision 31 December
22.1
21.9
Thereof assets
0.4
0.5
Thereof liabilities
22.5
22.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
339
The expenses in financial year 2023 are structured as follows:
↗ T.60 EXPENSES FOR DEFINED BENEFIT PLANS (in € million)
2023
2022
Cost of the pension obligation earned in the reporting year
2.0
2.5
Interest expense on pension obligation
4.4
1.9
Interest income on plan assets
-3.5
-1.4
Administration costs
0.0
0.0
Expenses for defined benefit plans
2.8
3.0
Thereof personnel costs
1.9
2.5
Thereof financial costs
0.9
0.5
In addition to the defined benefit pension plans, PUMA also makes contributions to defined contribution
plans. Payments for financial year 2023 amounted to € 19.8 million (previous year: € 18.5 million).
Actuarial gains and losses recorded in Other Comprehensive Income:
↗ T.61 GAINS AND LOSSES RECORDED IN OTHER COMPREHENSIVE INCOME (in € million)
2023
2022
Revaluation of pension commitments
0.1
-25.1
Actuarial gains (-) and losses resulting from changes in demographic assumptions
-0.7
-0.1
Actuarial gains (-) and losses resulting from changes in financial assumptions
0.0
-30.3
Actuarial gains (-) and losses due to adjustments based on experience
0.8
5.3
Revaluation of plan assets
0.9
15.0
Amounts not recorded due to the maximum limit applicable to assets
0.0
0.0
Adjustment of administration costs
0.0
0.0
Total revaluation amounts recorded directly in other comprehensive income
1.0
-10.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
340
Plan assets investment classes:
↗ T.62 PLAN ASSETS INVESTMENT CLASSES (in € million)
2023
2022
Cash and cash equivalents
0.3
0.1
Equity instruments
6.0
5.5
Bonds
7.4
3.5
Investment funds
3.2
3.0
Derivatives
10.0
11.6
Real estate
2.9
2.9
Insurance
50.6
49.4
Other
4.9
6.4
Total plan assets
85.2
82.4
Of which, investment classes with a quoted market price:
↗ T.63 PLAN ASSETS WITH A QUOTED MARKET PRICE (in € million)
2023
2022
Cash and cash equivalents
0.3
0.1
Equity instruments
6.0
5.5
Bonds
7.4
3.5
Investment funds
3.2
3.0
Derivatives
10.0
11.6
Real estate
2.1
2.1
Insurance
0.0
0.0
Other
4.7
6.3
Plan assets with a quoted market price
33.7
32.1
Plan assets still do not include the Group's own financial instruments or real estate used by Group
companies.
The plan assets are used exclusively to meet defined pension commitments. Legal requirements exist in
some countries for the type and amount of financial resources that can be chosen; in other countries (for
example Germany) the financing of pension commitments can be chosen freely. In Great Britain, a board of
trustees made up of company representatives and employees is in charge of asset management. Its
investment strategy is aimed at long-term profits and tolerable volatility. It was last revised in 2022 to
reduce the risk profile. In 2023, the trustees continued to monitor the investment strategy.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
341
The following assumptions were used to determine pension obligations and pension expenses:
↗ T.64 ASSUMPTIONS USED TO DETERMINE THE PENSION OBLIGATIONS
2023
2022
Discount rate
4.55%
4.35%
Future pension increases
1.93%
2.00%
Future salary increases
2.05%
2.06%
The indicated values are weighted average values. A standard interest rate of 4.45% was applied for the
eurozone (previous year: 4.00%).
The 2018 G Heubeck guideline tables were used as mortality tables for Germany. For Great Britain, the
mortality was assumed based on basic table series S2 taking into account life expectancy projections in
accordance with CMI2021 with a long-term trend of 1%.
The following overview shows how the present value of pension obligations from benefit plans would have
been affected by changes to significant actuarial assumptions.
↗ T.65 SENSITIVITY ANALYSIS FOR PENSION OBLIGATION (in € million)
2023
2022
Effect on present value of pension obligations if
the discount rate were 50 basis points higher
-3.7
-3.7
the discount rate were 50 basis points lower
4.2
4.1
Salary and pension trends have only a negligible effect on the present value of pension obligations due to
the structure of the benefit plans.
The weighted average duration of pension obligations is around 12 years (previous year: around 11 years).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
342
16. OTHER PROVISIONS
↗ T.66 OTHER PROVISIONS (in € million)
2022
2023
2022
Currency
adjustments,
retransfers
Additions
Utilization
Reversal
thereof non-
current
thereof non-
current
Provisions for:
Warranties
2.7
-0.1
0.5
-0.6
-0.3
2.1
0.0
0.0
Purchasing risks
7.1
-0.1
5.9
-4.6
-0.9
7.4
0.0
0.0
Litigation risks
26.6
-0.7
6.1
-15.2
-2.8
13.9
7.5
8.4
Restoration obligations
17.0
-0.8
1.9
-0.8
-0.5
16.9
13.9
14.1
Personnel provisions
7.0
0.4
2.6
-4.1
0.0
5.9
5.9
7.0
Other
19.3
-0.2
5.5
-6.1
-9.8
8.7
0.0
0.0
Total
79.8
-1.4
22.3
-31.5
-14.3
55.0
27.3
29.5
The 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
will 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
shoes.
Personnel provisions mainly relate to non-current variable compensation components. The risks arising from legal disputes relate to any form of legal dispute, including
those relating to trademark and patent rights. The other provisions relate to other risks, in particular those associated with sourcing.
Current 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
significant compounding effects. The recognition and valuation of provisions is based on past experience of similar transactions. All events until the preparation of the
consolidated financial statements are taken into account here.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
343
17. EQUITY
SUBSCRIBED CAPITAL
The subscribed capital corresponds to the subscribed capital of PUMA SE.
As of the balance sheet date, the subscribed capital in accordance with the Articles of Association
corresponds to € 150,824,640.00 and is divided into 150,824,640 no-par value voting shares. This corresponds
to a proportional amount of € 1.00 per share.
Changes in the outstanding shares:
↗ T.67 CHANGE IN OUTSTANDING SHARES
2023
2022
Outstanding shares as of January 1, share
149,758,644
149,605,600
Issue of Treasury Stock, share
85,900
153,044
Outstanding shares as of December 31, share
149,844,544
149,758,644
The issue of treasury stock relates to compensation in connection with promotional and advertising
agreements.
CAPITAL RESERVE
The capital reserve includes the premium from issuing shares, as well as amounts from the grant,
conversion and expiration of share options.
REVENUE RESERVES INCL. RETAINED EARNINGS
The revenue reserves incl. retained earnings include the net earnings of the financial year as well as the
earnings achieved in the past by the companies included in the consolidated financial statements to the
extent that it was not distributed. In addition, the valuation effects from the pension provision recognised in
other comprehensive income are recognised in retained earnings.
DIFFERENCE FROM CURRENCY CONVERSION
The equity item for currency conversion serves to record the foreign exchange differences from the
conversion of the financial statements of subsidiaries with non-euro accounting.
CASH FLOW HEDGES
The "cash flow hedges" item includes the market valuation of derivative financial instruments. The item
amounting to € -3.9 million (previous year: € 14.2 million) is offset by deferred taxes of € 5.3 million (previous
year: € -4.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
344
TREASURY STOCK
The resolution adopted by the Annual General Meeting on 7 May 2020 authorised the Company to purchase
treasury shares up to a value of 10% of the share capital until 6 May 2025. By resolution of the Annual
General Meeting of 5 May 2021, the Supervisory Board was authorised to issue the acquired shares to the
members of the Management Board of the Company, excluding the shareholders' subscription rights. By
resolution of the Annual General Meeting of 11 May 2022, the Management Board was, moreover, authorised
to issue the acquired shares, excluding the shareholders' subscription rights, as part of the Company's or
its affiliated companies' share-based payments or employee share programmes to individuals currently or
formerly in an employment relationship with the Company or one of its affiliated companies or to members
of the management of one of the Company's affiliated companies. If purchased through the stock exchange,
the purchase price per share must not exceed 10% or fall below 20% of the average closing price for the
Company's shares with the same attributes in the XETRA trading system (or a comparable successor
system) during the last three trading days prior to the date of purchase.
The Company did not make use of the authorisation to purchase treasury stock during the reporting period.
As of the balance sheet date, the Company holds a total of 980,096 PUMA shares in its own portfolio, which
corresponds to 0.65% of the subscribed capital.
AUTHORISED CAPITAL
As of 31 December 2023, the Company's Articles of Association provide for authorised capital totalling
€ 30,000,000.00:
Pursuant to Section 4.2. of the Articles of Association, the Management Board is authorised, with the
consent of the Supervisory Board, to increase the Company's share capital by 4 May 2026 by up to
€ 30,000,000.00 (Authorised Capital 2021) by issuing new no-par value bearer shares against cash and/or
non-cash contributions on one or more occasions. In the case of capital increases against contributions in
cash, the new shares may be acquired by one or several banks, designated by the Management Board,
subject to the obligation to offer them to the shareholders for subscription (indirect subscription right). The
shareholders shall generally be entitled to subscription rights. However, the Management Board is
authorised, with the consent of the Supervisory Board, to exclude shareholders' subscription rights in whole
or in part in the cases specified in Section 4.2. of the Articles of Association.
The Management Board of PUMA SE did not make use of the existing authorised capital in the current
reporting period.
CONDITIONAL CAPITAL
By resolution of the Annual General Meeting of 11 May 2022, the Management Board was authorised until
10 May 2027, with the consent of the Supervisory Board, through one or more issues, altogether or in parts
and in various tranches at the same time, to issue bearer or registered convertible and/or option bonds,
profit-sharing rights or participation bonds or a combination of these instruments with or without a term
limitation in a total nominal amount of up to € 1,500,000,000.00.
The share capital was conditionally increased by up to € 15,082,464.00 by issuing up to 15,082,464 new no-par
value bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented
to the extent that conversion/option rights are exercised, or the option/conversion obligations are met or
tenders are carried out and to the extent that other forms of performance are not applied.
No use has been made of this authorisation to date.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
345
DIVIDENDS
The amounts eligible for distribution relate to the retained earnings of PUMA SE, which are determined in
accordance with German Commercial Law.
The Management Board and the Supervisory Board will propose to the Annual General Meeting that a
dividend of € 0.82 (previous year: € 0.82) per circulating share, or a total of € 122.9 million (with respect to
the circulating shares as of 31 December 2023), be distributed to the shareholders from the retained
earnings of PUMA SE for financial year 2023.
Proposed appropriation of the retained earnings of PUMA SE:
↗ T.68 PROPOSED APPROPRIATION OF THE RETAINED EARNINGS OF PUMA SE
2023
2022
Retained Earnings of PUMA SE as of December 31, € million
486.4
499.4
Retained earnings available for distribution, € million
486.4
499.4
Dividend per share, €
0.82
0.82
Number of outstanding shares*, share
149,844,544
149,758,644
Total dividend*, € million
122.9
122.8
Carried forward to the new accounting period*, € million
363.6
376.6
*
Previous year's values adjusted to the outcome of the Annual General Meeting
NON-CONTROLLING INTERESTS
This item comprises non-controlling interests. The composition is shown in chapter 28.
CAPITAL MANAGEMENT
The Group's objective is to retain a strong equity base in order to maintain both investor and market
confidence, and to strengthen future business performance.
Capital management relates to the consolidated equity of PUMA. This is presented in the consolidated
statement of financial position and in the consolidated statement of changes in equity.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
346
18. MANAGEMENT INCENTIVE PROGRAMMES
Virtual shares with cash settlement and other global long-term incentive programmes are used at PUMA to
tie the management to the Company with a long-term incentive effect.
The current programmes are described below:
EXPLANATION OF "VIRTUAL SHARES", TERMED "MONETARY UNITS" (FULL TERM: MONETARY UNITS
PLAN – MUP)
Monetary units were granted on an annual basis to members of the Management Board beginning in 2013 as
part of a management incentive programme. Monetary units are based on the PUMA share performance.
Each of these monetary units entitles the holder to a cash payment at the end of the term. The entitled cash
payment compares the performance using the average virtual appreciation rights of the last thirty trading
days before the start of the year of issue with the virtual appreciation rights of the last thirty trading days
before the exercise date. The maximum increase in value (cap) is limited to 300% of the amount allocated.
Monetary units are subject to a vesting period of three years. After that, there is an exercise period
beginning 30 days after each quarterly publication date for a period of two years which can be freely used by
participants for the purposes of execution. Virtual shares are reduced on a "pro rata" basis in the event of
withdrawal during the vesting period. This programme will expire and be replaced by the Performance
Share Plan. As a result, no more shares were issued from this programme in financial year 2023.
EXPLANATION OF "VIRTUAL SHARES" (FULL TERM: PERFORMANCE SHARE PLAN – PSP)
Virtual shares were granted on an annual basis to members of the Management Board beginning in 2021 as
part of a management incentive programme. The virtual shares are based on the PUMA share performance.
Each of these virtual shares entitles the holder to a cash payment at the end of the term. However, the
Supervisory Board reserves the right to make the payment in PUMA shares instead of cash. This cash
payout is based on the PUMA closing prices for the last thirty trading days before the exercise date. The final
number of virtual shares is between 50% and 150%, depending on the relative "Total Shareholder Returns"
(TSR) compared to the MDAX index. The PUMA and MDAX index TSRs are calculated using the arithmetic
means of each of the TSR values on the 30 trading days before the start and end of the performance period.
The averages calculated in this way for PUMA and the MDAX index are then compared with each other. The
difference in percentage points between the PUMA TSR and the MDAX index TSR is then calculated (= TSR
outperformance in percentage points). The maximum increase in value (cap) is limited to 300% of the
amount allocated. Virtual shares are subject to a vesting period of four years. They are generally paid out
within the first quarter of the fifth year after their issue. Virtual shares are reduced on a "pro rata" basis in
the event of withdrawal during the vesting period. For the programmes issued in the financial years 2021
and 2022, the DAX acts as the basis for calculating virtual shares, while the MDAX index is used starting
financial year 2023.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
347
In 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
(previous year: income of € 0.9 million).
↗ T.69 VIRTUAL SHARES, MEMBERS OF THE MANAGEMENT BOARD
Plan
MUP
MUP
PSP
MUP
PSP
PSP
Issue date
1/1/2020
1/1/2021
1/1/2021
1/1/2022
1/1/2022
1/1/2023
Term
5
5
4.25
5
4.25
4.25
Years
Vesting period
3
3
4
3
4
4
Years
Base price PUMA share at issue
67.69
86.23
86.23
106.95
106.95
51.86
EUR/share
Reference value PUMA share at the end of the financial year
0
55.46
49.25
55.46
46.3
50.62
EUR/share
Weighted share price at the time of exercise
62.03
0
0
0
0
0
EUR/share
Participants in the year of issue
3
3
2
1
3
4
Persons
Participants at the end of the financial year
3
3
2
1
3
4
Persons
Number of monetary units/virtual shares as of 1 January 2023
62,743
34,548
7,070
10,323
16,458
81,279
Shares
Number of monetary units/virtual shares exercised in the financial year
-62,743
0
0
0
0
0
Shares
Number of monetary units/virtual shares expired in the financial year
0
0
0
0
0
0
Shares
Final number of monetary units/virtual shares as of 31 December 2023
0
34,548
7,070
10,323
16,458
81,279
Shares
This commitment consisting of share-based remuneration transactions with cash compensation is recorded as personnel provisions and remeasured at fair value on
every 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
over 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
of the financial year (previous year: € 5.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
348
EXPLANATION OF THE "GAME CHANGER 2.0" PROGRAMME
In 2018, the Long-Term Incentive Programme (LTIP) "Game Changer 2.0" was launched. Participants in this
programme consist mainly of top executives reporting to the Management Board and individual key
positions in the PUMA Group. The objective of this programme is to retain these employees in the Company
on a long-term basis and to allow them to share in the medium-term success of the Company.
The LTIP "Game Changer 2.0" consists of two plan parts, a Performance Cash Plan and a Performance
Share Plan, each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's
financial performance, while the Performance Share Plan gives a reward for the performance of the
PUMA SE share in the capital market.
The performance period of the Performance Cash Plan is three years and is based on the average medium-
term targets of the PUMA Group in terms of EBIT, sales and cash flow or working capital as a percentage of
sales. Payment is made in cash and is limited to a maximum of 200% of the granted proportionate target
amount (cap).
The Performance Share Plan uses virtual shares to manage the incentive. The term is up to five years. This
is divided into a three-year performance period and a two-year exercise period in which the virtual shares
are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24 months after the end
of the performance period). The average share price of the last 30 trading days before the exercise date
determines the value of a virtual share. The payout is limited to a maximum of 300% of the granted prorated
target amount (cap) and is only made if an exercise hurdle of +10% share-price appreciation is exceeded
once during the performance period.
EXPLANATION OF THE "GAME CHANGER 2.0 – 2023" PROGRAMME
In 2020, the global "Game Changer 2.0 – 2023" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As
part of the Performance Share component, payment is limited to a maximum of 300% of the granted
proportionate target amount (cap).
In the reporting year, an amount of € 2.2 million (of which, € 0.8 million from the Performance Share Plan)
was paid out to the participants. The payment was subject to the condition that the individual participants
were in an unterminated employment relationship with a company in the PUMA Group as at 31
December 2022. Furthermore, € -0.1 million was released for this programme in the year under review
(previous year: release of € 0.2 million). This resulted in a provision for this programme at the end of the
financial year of
€ 0.5 million (previous year: € 2.8 million). The Performance Share Plan portion accounted for € 0.5 million
(previous year: € 1.3 million).
EXPLANATION OF THE "GAME CHANGER 2.0 – 2024" PROGRAMME
In 2021, the global "Game Changer 2.0 – 2024" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (45%), working capital as a percentage of
sales (15%), and sales (40%). As part of the Performance Share component, payment is limited to a
maximum of 300% of the granted proportionate target amount (cap). An employment relationship until
31 December 2023 is required. In the reporting year, € 0.2 million was released for this programme (previous
year: € 0.0 million) and a proportionate amount of € 1.1 million (previous year: € 0.5 million) was set aside for
this programme. This resulted in a provision for this programme at the end of the financial year of
€ 3.4 million (previous year: € 2.5 million). The Performance Share Plan portion accounted for € 1.2 million
(previous year: € 0.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
349
EXPLANATION OF THE "GAME CHANGER 2.0 – 2026" PROGRAMME
In 2023, the global "Game Changer 2.0 – 2026" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As
part of the Performance Share component, payment is limited to a maximum of 300% of the granted
proportionate target amount (cap). An employment relationship until 31 December 2024 is required. In the
reporting year, a prorated amount of € 1.8 million (previous year: € 0.0 million) was set aside for this
programme. This resulted in a provision for this programme at the end of the financial year of € 1.8 million
(previous year: € 0.0 million). The Performance Share Plan portion accounted for € 1.0 million (previous year:
€ 0.0 million).
EXPLANATION OF THE "ROAD 2 10B" PROGRAMME
In 2022, the "Game Changer 2.0" programme was replaced by the long-term incentive programme (LTIP)
"Road 2 10B". Participants in this programme consist of important professionals and managers within the
PUMA Group. The objective of this programme is to retain these employees in the Company on a long-term
basis and to allow them to share in the medium-term success of the Company.
The LTIP "Road 2 10B" consists of two plan parts, a Performance Cash Plan and a Performance Share Plan,
each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's financial
performance, while the Performance Share Plan gives a reward for the performance of the PUMA SE share
in the capital market.
The Performance Cash Plan is focused on the following targets: EBIT, sales and working capital as a
percentage of sales based on the three-year plan set by the Management Board of PUMA SE. For
participants in the programme with an employment relationship at Group level, the target achievement is
based on the following Group targets: EBIT (45%), sales (40%), and working capital as a percentage of sales
(15%). For participants in the programme with an employment relationship at the national or regional level,
50% of the target achievement is based on achieving the Group targets. The remaining 50% is based on
achieving the following targets at the national or regional level: EBIT (22.5%), sales (20%) and working
capital as a percentage of sales (7.5%). Payment is limited to a maximum of 200% of the granted
proportionate target amount (cap).
The Performance Share Plan is based on the performance of the PUMA share price. The term is up to five
years, divided into a three-year performance period and a subsequent two-year exercise period, in which
the virtual shares are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24
months after the end of the performance period). The average share price of the last 30 trading days before
the exercise date determines the payout value of a virtual share. The payout is limited to a maximum of
300% of the granted prorated target amount (cap) and is only made if an exercise hurdle of +10% share-price
appreciation is exceeded once during the performance period.
In the reporting year, € 0.6 million was released for this programme (previous year: € 0.0 million) and a
proportionate amount of € 0.8 million (previous year: € 4.7 million) was set aside for this programme. This
resulted in a provision for this programme at the end of the financial year of € 6.0 million (previous year:
€ 5.8 million). The Performance Share Plan portion accounted for € 0.4 (previous year: € 0.6 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
350
↗ T.70 VIRTUAL SHARES, NON-MANAGEMENT BOARD MEMBERS
Program addendum
Game Changer
2023
Game Changer
2024
Road 2.10b
Game Changer
2026
Issue date
1/1/2020
1/1/2021
1/1/2022
1/1/2023
Term
5
5
5
5
Years
Vesting period
3
3
3
3
Years
Base price at program start
67.69
86.23
106.95
51.86
EUR/share
Reference value at the end of the financial year
55.46
55.46
5.73
55.46
EUR/share
Weighted share price at the time of exercise
51.43
0
0
0
EUR/share
Participants in the year of issue
60
76
486
84
Persons
Participants at the end of the financial year
19
65
467
84
Persons
Number of virtual shares as of 1 January 2023
24,547
23,340
103,352
55,167
Shares
Number of virtual shares expired in the financial year
-222
-2,370
-10,467
0
Shares
Number of virtual shares added in the financial year (new participants)
0
470
2,674
0
Shares
Number of virtual shares exercised in the financial year
-15,334
0
0
0
Shares
Final number of virtual shares as of 31 December 2023
8,991
21,440
95,559
55,167
Shares
PUMA Annual Report 2023
↗ Consolidated Financial Statements
351
NOTES TO THE CONSOLIDATED INCOME
STATEMENT
19. SALES
The following table shows the Group's sales broken down by distribution channel and division:
↗ T.71 BREAKDOWN BY DISTRIBUTION CHANNEL (in € million)
2023
2022
Wholesale
6,468.6
6,513.7
Direct-to-consumer (DTC)
2,133.0
1,951.4
Total
8,601.7
8,465.1
↗ T.72 BREAKDOWN BY PRODUCT DIVISION (in € million)
2023
2022
Footwear
4,583.4
4,317.9
Apparel
2,763.0
2,896.3
Accessories
1,255.3
1,251.0
Total
8,601.7
8,465.1
20. OTHER OPERATING INCOME AND EXPENSES
According to the respective functions, other operating income and expenses include personnel, advertising,
sales and distribution expenses as well as rental and leasing expenditure, travel costs, legal and consulting
expenses and other general expenses. Rental and lease expenses associated with the Group's own retail
stores include revenue-based rental components.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
352
Other operating income and expenses are allocated based on functional areas as follows:
↗ T.73 OTHER OPERATING INCOME AND EXPENSES (in € million)
2023
2022
Sales and distribution expenses
2,799.0
2,677.2
Product management/merchandising
82.5
70.9
Research and development
89.0
82.2
Administrative and general expenses
450.9
465.8
Other operating expenses
3,421.3
3,296.0
Other operating income
-17.8
-0.1
Total
3,403.5
3,295.9
Thereof personnel expenses
894.4
836.3
Thereof scheduled depreciation
351.7
332.8
Thereof impairment losses
5.7
26.0
Thereof reversal of impairment losses
-11.9
0.0
Within the sales and distribution expenses, marketing/retail expenses account for a large proportion of the
operating expenses. In addition to advertising and promotional expenses, they also include expenses
associated with the Group's own retail activities. Other sales and distribution expenses include logistics
expenses and other variable sales and distribution expenses.
Impairment expenses in the reporting year amounted to € 5.7 million and related exclusively to right-of-use
assets (previous year: € 25.4 million). There were no impairment expenses for property, plant and
equipment (previous year: € 0.6 million). In contrast, there were reversals of impairment losses on
right-of-use assets amounting to € 11.9 million (previous year: € 0.0 million).
In the consolidated financial statements of PUMA SE, fees of € 2.0 million (previous year: € 1.9 million) are
recorded as operating expenses for the auditor of the consolidated financial statements, KPMG AG
Wirtschaftsprüfungsgesellschaft, Nuremberg, Germany. The audit fee is divided into fees for audit services
for the annual and consolidated financial statements as well as the audit review of the half-year financial
report in the amount of € 1.8 million (previous year: € 1.8 million) and other assurance services amounting to
€ 0.2 million (previous year: € 0.1 million) mainly for the audit of information in the sustainability report and
other minor services in the amount of € 0.0 million (previous year: none). In addition to expenses for
PUMA SE, the fees also include the fees of the domestic and foreign subsidiaries audited directly by the
Group auditor.
In financial year 2023, government grants amounted to a mid single-digit (previous year: low double-digit)
million euro amount. Government grants are deducted from the corresponding expenses.
Other operating income comprises income from the sale of fixed assets in the amount of € 8.5 million
(previous year: € 0.1 million), selling profit from finance leases totalling € 8.0 million (previous year:
€ 0.0 million), and rental income totalling € 1.4 million (previous year: € 0.0 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
353
Overall, other operating expenses include personnel costs, which consist of:
↗ T.74 PERSONNEL COSTS (in € million)
2023
2022
Wages and salaries
688.7
649.8
Social security contributions
101.2
91.9
Expenses from share-based payments with cash compensation
5.2
5.1
Expenses for retirement pension and other personnel expenses
99.3
89.5
Total
894.4
836.3
In addition, cost of sales includes personnel costs in the amount of € 6.2 million (previous year:
€ 10.2 million).
The average number of employees for the year was as follows:
↗ T.75 EMPLOYEES
2023
2022
Marketing/retail/sales
13,092
12,229
Research & development/product management
1,360
1,228
Administrative and general units
3,570
3,213
Total annual average
18,023
16,669
As of the end of the year, a total of 18,681 individuals were employed (previous year: 18,071).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
354
21. FINANCIAL RESULT
The financial result consists of:
↗ T.76 FINANCIAL RESULT (in € million)
2023
2022
Interest income
36.6
32.3
Interest income - lease receivables
1.2
0.0
Other
74.9
47.1
Financial income
112.7
79.4
Interest expense
-53.1
-15.2
Interest expense - lease liabilities
-46.8
-38.6
Interest expense of valuation of pension plans
-0.9
-0.6
Expenses from currency-conversion differences, net
-69.4
-2.2
Other
-85.9
-111.7
Financial expenses
-256.0
-168.3
Financial result
-143.3
-88.9
The "Other" item in the financial income of € 74.9 million (previous year: € 47.1 million) includes interest
components in connection with currency derivatives as well as hedging gains from freestanding derivatives.
The item "Other" in financial expenses includes, among other things, interest components in connection
with currency derivatives in the amount of € 58.1 million (previous year: € 69.9 million) and the loss on the
net monetary position associated with hyperinflation in the amount of € 23.7 million (previous year:
€ 27.8 million).
22. INCOME TAXES
↗ T.77 INCOME TAXES (in € million)
2023
2022
Current income taxes
140.6
152.5
Deferred taxes
-22.8
-25.1
Total
117.8
127.4
Current income taxes include € 0.8 million in out-of-period income. Deferred taxes include tax income of
€ 0.3 million (tax income in previous year: € 39.2 million), which is attributable to the occurrence or
resolution of temporary differences.
In general, PUMA SE and its German subsidiaries are subject to corporate income tax, plus a solidarity
surcharge and trade tax. Thus, a weighted mixed tax rate of 27.22% continued to apply for the financial year.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
355
Reconciliation of the theoretical tax expense with the effective tax expense:
↗ T.78 TAX RATE RECONCILIATION (in € million)
2023
2022
Earnings before income tax
478.3
551.7
Theoretical tax expense
Tax rate of the SE = 27.22% (previous year: 27.22%)
130.2
150.2
Tax rate difference with respect to other countries
-21.0
-6.9
Other tax effects:
Income tax for previous years
3.7
-9.7
Losses and temporary differences for which no tax claims were recognized
6.4
4.8
Changes in tax rates
-0.4
-0.6
Non-deductible expenses for tax purposes and non-taxable income and other effects
-1.1
-10.4
Effective tax expense
117.8
127.4
Effective tax rate
24.6%
23.1%
For the financial year 2023, the total tax advantage from previously uncapitalised tax losses, tax credits or
temporary differences from previous years which led to a reduction in deferred tax expenses, amounted to
€ 7.5 million (previous year: € 7.0 million). Deferred tax expenses due to an impairment of deferred tax
assets amounted to € 11.3 million in the financial year (previous year: € 5.0 million).
The tax effect resulting from items that were directly included in other comprehensive income can be found
in chapter 8.
INFORMATION ON THE EFFECTS OF GLOBAL MINIMUM TAXATION (PILLAR II)
On 23 May 2023, the IASB published amendments to IAS 12, which require companies subject to global
minimum taxation regulations to provide additional information on the impact of the global minimum
taxation in their annual financial statements for financial years beginning on or after 1 January 2023.
The PUMA Group falls within the scope of application of the global minimum taxation. The relevant
legislation entered into force on 28 December 2023 in Germany, the country in which the parent company of
the PUMA Group is based, and applies to financial years beginning after 31 December 2023. As the Minimum
Tax Act ("MinStG") applies to the financial year of the PUMA Group beginning on 1 January 2024, but was not
yet applicable to the financial year beginning on 1 January 2023, the PUMA Group has no associated ongoing
tax risk in financial year 2023. Taking into account the fact that the PUMA Group will be affected by the
minimum tax legislation, a preliminary valuation of the potential risk was carried out.
The valuation of the potential risk of Pillar II taxes is based on the most recent country-related reports and
financial statements available to the Group's business units. The Group has identified a potential risk of the
suspension of Pillar II taxes on profits made in Hong Kong and the United Arab Emirates. The potential risk
arises from the business units (mainly operating subsidiaries) in these countries, where the effective tax
rate is likely to be less than 15%.
If the MinStG had been applied for this financial year ending on 31 December 2023, the amount of the tax
increase determined according to the MinStG would have totalled approx. € 12 million. However, the actual
amounts of tax increases in the countries concerned in 2024 will depend on various factors.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
356
The PUMA Group makes use of the exemption under IAS 12.88A for the recognition of deferred taxes that
result from the introduction of global minimum taxation.
23. EARNINGS PER SHARE
The earnings per share are determined in accordance with IAS 33 by dividing the consolidated annual
surplus (consolidated net earnings) attributable to the shareholders of the parent company by the weighted
average number of outstanding shares.
The calculation is shown in the table below:
↗ T.79 EARNINGS PER SHARE
2023
2022
Net income attributable to the shareholders of PUMA SE (€ million)
304.9
353.5
Weighted average number of outstanding shares (shares)
149,852,251
149,649,158
Earnings per share (€)
2.03
2.36
Net income for calculating the diluted earnings per share (€ million)
304.9
353.5
Weighted average number of outstanding shares (shares)
149,852,251
149,649,158
Dilutive effect of conditionally issuable shares in connection with service agreements
0
12,107
Dilutive effect from share-based payments
19,651
2,573
Weighted average number of outstanding shares, diluted (shares)
149,871,901
149,663,837
Earnings per share (€) - diluted
2.03
2.36
PUMA Annual Report 2023
↗ Consolidated Financial Statements
357
ADDITIONAL INFORMATION
24. SEGMENT REPORTING
Segment reporting is based on geographical areas of responsibility in accordance with the PUMA internal
reporting structure, with the exception of stichd. The geographical area of responsibility corresponds to the
business segment. Sales, the operating result (EBIT) and other segment information are allocated to the
corresponding geographical areas of responsibility according to the registered office of the respective Group
company.
The internal management reporting includes the following reporting segments: Europe, EEMEA (Eastern
Europe, Middle East, Africa, India and Southeast Asia), North America, Latin America, Greater China, rest of
Asia/Pacific (excluding Greater China and Southeast Asia) and stichd. These are reported as reportable
business segments in accordance with the criteria of IFRS 8.
The reconciliation includes information on assets, liabilities, expenses and income in connection with
centralised functions that do not meet the definition of business segments in IFRS 8. Central expenses and
income include in particular central sourcing, central treasury, central marketing, impairment losses on
non-current assets and other global functions of the Company headquarters.
The Company's main decision-maker is defined as the entire Management Board of PUMA SE.
The external sales presented in the segment reporting includes sales from both the wholesale business and
own retail activities (direct-to-consumer business). The percentage breakdown of sales by wholesale
business and direct-to-consumer business at the segment level mainly aligns with the breakdown at the
Group level (see chapter 19). Exceptions to this are the Greater China segment, where wholesale sales
represent approximately 50%, and the stichd segment, which almost exclusively generates wholesale sales.
The business relationships between the companies in the segments are essentially based on prices that are
also agreed with third parties. With the exception of sales of goods by stichd amounting to € 37.1 million
(previous year: € 38.3 million), there are no significant internal sales, which is why they are not included in
the presentation.
The operating result (EBIT) of the business segments is defined as gross profit less the attributable other
operating expenses plus royalty and commission income and other operating income, but not considering
the costs of the central departments and the central marketing expenses.
The external sales, operating result (EBIT), inventories and trade receivables of the business segments are
regularly reported to the main decision-maker. Amounts recognised by the Group from the intra-group
profit elimination on inventories in connection with intra-group sales are not allocated to the business
segments in the way that they are reported to the main decision-maker. Investments, depreciation and non-
current assets at the level of the business segments are not reported to the main decision-maker.
Intangible assets are allocated to the business segments in the manner described in chapter 11. Liabilities,
the financial result and income taxes are not allocated to the business segments and are therefore not
reported to the main decision-maker at the business segment level.
Non-current assets and depreciation comprise the carrying amounts and depreciation of property, plant and
equipment, right-of-use assets and intangible assets during the past financial year. The investments
comprise additions to property, plant and equipment and intangible assets.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
358
Since PUMA is active in only one business area, the sporting goods industry, products are additionally
allocated according to the Footwear, Apparel and Accessories product segments in accordance with the
internal reporting structure.
SEGMENT REPORTING JAN-DEC 2023
↗ T.80 BUSINESS SEGMENTS (in € million)
External Sales
EBIT
Investments
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Europe
2,016.0
1,922.5
251.4
242.0
25.8
33.6
EEMEA
1,626.2
1,333.3
392.1
308.5
28.1
30.2
North America
2,095.9
2,531.4
295.0
398.9
75.5
67.6
Latin America
1,239.9
1,098.3
285.3
285.2
75.8
34.6
Greater China
582.2
521.3
84.5
20.2
10.3
20.3
Asia/Pacific (excluding
Greater China)
551.7
588.5
61.2
73.4
6.5
7.2
stichd
459.4
469.8
89.5
113.2
22.1
21.2
Total business segments
8,571.3
8,465.1
1,458.9
1,441.2
244.1
214.7
Depreciation and amortization
Inventories
Trade Receivables (third
parties)
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Europe
61.7
58.5
498.5
602.5
196.4
190.3
EEMEA
55.6
55.8
338.4
378.5
286.5
189.4
North America
83.3
71.2
466.1
739.3
204.9
259.2
Latin America
39.2
23.1
306.9
253.1
223.7
200.7
Greater China
29.3
39.7
109.6
179.1
40.6
44.5
Asia/Pacific (excluding
Greater China)
28.1
31.6
97.8
114.7
91.5
111.4
stichd
11.2
8.3
104.8
93.9
72.1
66.1
Total business segments
308.3
288.2
1,922.0
2,361.1
1,115.7
1,061.6
PUMA Annual Report 2023
↗ Consolidated Financial Statements
359
↗ T.81 CONTINUATION BUSINESS SEGMENTS (in € million)
Non-current assets
1-12/2023
1-12/2022
Europe
477.4
477.1
EEMEA
186.1
198.1
North America
741.8
750.4
Latin America
221.5
128.2
Greater China
91.8
86.2
Asia/Pacific (excluding Greater China)
121.7
149.4
stichd
226.0
209.6
Total business segments
2,066.4
1,999.1
↗ T.82 PRODUCT External Sales (€ million) Gross Profit Margin (in %)
External Sales
Gross Profit Margin
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Footwear
4,583.4
4,317.9
45.4%
44.9%
Apparel
2,763.0
2,896.3
47.8%
47.3%
Accessories
1,255.3
1,251.0
46.6%
47.4%
Total
8,601.7
8,465.1
46.3%
46.1%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
360
RECONCILIATIONS
↗ T.83 RECONCILIATIONS (in € million)
External Sales
1-12/2023
1-12/2022
Total business segments
8,571.3
8,465.1
Central Areas
30.4
0.0
Total
8,601.7
8,465.1
EBIT
1-12/2023
1-12/2022
Total business segments
1,458.9
1,441.2
Central Areas
-344.6
-364.4
Central expenses Marketing
-492.7
-436.2
Consolidation
0.0
0.0
EBIT
621.6
640.6
Financial Result
-143.3
-88.9
EBT
478.3
551.7
Investments
Depreciation and amortization
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Total business segments
244.1
214.7
308.3
288.2
Central Areas
55.5
49.3
43.4
44.6
Consolidation
0.0
0.0
0.0
0.0
Total
299.6
263.9
351.7
332.8
Inventories
Trade Receivables (third
parties)
Non-current assets
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Total business segments
1,922.0
2,361.1
1,115.7
1,061.6
2,066.4
1,999.1
Not allocated to the business
segments
-117.7
-116.0
2.8
3.3
237.7
211.0
Total
1,804.4
2,245.1
1,118.4
1,064.9
2,304.1
2,210.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
361
GEOGRAPHICAL INFORMATION
Sales revenue (with third parties) is reported in the geographical market in which it arises. Non-current
assets are allocated to the geographical market based on the registered office of the relevant subsidiary,
regardless of the segment structure.
↗ T.84 GEOGRAPHICAL INFORMATION BY COUNTRY (in € million)
External Sales
Non-current assets
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Germany, Europe
631.6
586.3
507.0
488.3
USA, North America
1,933.7
2,334.2
604.5
604.7
25. NOTES TO THE CASH FLOW STATEMENT
The cash flow statement was prepared in accordance with IAS 7 and is structured based on cash flows from
operating, investing and financing activities. The indirect method is used to determine the cash
outflow/inflow from operating activities. The gross cash flow, derived from earnings before income tax and
adjusted for non-cash income and expense items, is determined within the cash flow from operating
activities. Cash outflow/inflow from operating activities less investments in property, plant and equipment
as well as intangible assets is referred to as free cash flow.
The cash and cash equivalents reported in the cash flow statement include all cash and cash equivalents
shown in the statement of financial position under the item "Cash and cash equivalents", i.e. cash on hand,
checks and current bank balances including short-term financial investments.
The following table shows the cash and non-cash changes in financial liabilities in accordance with IAS 7.44
A:
↗ T.85 RECONCILIATION OF FINANCIAL LIABILITIES TO THE CASH INFLOW/ OUTFLOW FROM
FINANCING ACTIVITIES 2023 (in € million)
Non-cash changes
Notes
Balance
01/01/2023
Currency
changes
Other
Cash changes
Balance
31/12/2023
Financial liabilities
Lease liabilities
10
1,230.4
-44.9
254.9
-208.0
1,232.4
Current borrowings
13
75.9
-0.6
129.8
-59.1
145.9
Non-current borrowings
13
251.5
0.0
-125.0
299.6
426.1
Total
1,557.8
-45.6
259.7
32.5
1,804.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
362
↗ T.86 RECONCILIATION OF FINANCIAL LIABILITIES TO THE CASH INFLOW/ OUTFLOW FROM
FINANCING ACTIVITIES 2022 (in € million)
Non-cash changes
Notes
Balance
01/01/2022
Currency
changes
Other
Cash changes
Balance
31/12/2022
Financial liabilities
Lease liabilities
10
1,023.4
12.1
385.0
-190.0
1,230.4
Current borrowings
13
68.5
-1.1
0.0
8.4
75.9
Non-current borrowings
13
311.5
0.0
0.0
-60.0
251.5
Total
1,403.4
11.1
385.0
-241.6
1,557.8
The lease liabilities of € 1,232.4 million (previous year: € 1,230.4 million) break down into current lease
liabilities of € 212.4 million (previous year: € 200.2 million) and non-current lease liabilities of
€ 1,020.0 million (previous year: € 1,030.3 million).
26. OTHER FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES
OTHER FINANCIAL OBLIGATIONS
The Company has other financial obligations associated with license, promotional and advertising
agreements, which give rise to the following financial obligations as of the balance sheet date:
↗ T.87 COMMITMENTS FROM LICENSE, PROMOTIONAL AND ADVERTISING AGREEMENTS
(in € million)
2023
2022
From license, promotional and advertising agreements:
Due within one year
402.4
348.6
Due between one and five years
1,203.5
781.1
Due after five years
314.2
130.8
Total
1,920.2
1,260.5
As is customary in the industry, the promotional and advertising agreements provide for additional
payments on reaching pre-defined goals (e.g. medals, championships). These are contractually agreed, but
by their nature cannot be predicted exactly in terms of their timing and amount.
In addition, there are other financial obligations totalling € 246.5 million, of which, € 146.5 million relate to
the years from 2025. These include service agreements of € 234.2 million as well as other obligations of
€ 12.3 million.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
363
CONTINGENT LIABILITIES
Individual PUMA companies are involved in legal disputes arising from normal operating activities, e.g.
relating to intellectual property rights and employee matters. If an outflow of resources from these legal
disputes is classified as probable and the amount of the obligation can be reliably estimated, the risks
arising from these legal disputes are included in the other provisions. However, if the probability of
occurrence is classified as low, these legal disputes are recognised as contingent liabilities, which are
estimated at € 0.8 million in this financial year (previous year: € 3.1 million). Contingent liabilities also exist
due to uncertainties in the appraisal of the facts by the tax and customs authorities in India. Based on
external reports, the Management currently assumes that the receivables of Indian tax and customs
authorities will not result in any cash outflow. Overall, the PUMA Management considers that the impact of
the total of the contingent liabilities on the net assets, financial position and results of operations of the
Company is immaterial.
27. COMPENSATION OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD
Disclosures pursuant to Section 314(1) 6 HGB (German Commercial Code [Handelsgesetzbuch]) in
conjunction with Section 315e HGB.
COMPENSATION OF THE MEMBERS OF THE MANAGEMENT BOARD
The total compensation of the members of the Management Board in financial year 2023 was € 10.3 million
(previous year: € 11.9 million).
The total remuneration of the Management Board includes the share-based remuneration granted for the
financial year with a fair value of € 4.2 million (previous year: € 1.7 million) and 81,279 performance shares
were issued (previous year: 16,457). The total remuneration for the previous year also includes the issue of
30,968 virtual shares of the PUMA Monetary Unit Plan with a fair value of € 3.0 million.
TOTAL COMPENSATION OF FORMER MEMBERS OF THE MANAGEMENT BOARD
The total remuneration of former members of the Management Board and their surviving dependents
amounted to € 2023 million in financial year 0.7 (previous year: € 0.7 million).
In addition, there were defined benefit pension obligations to former members of the Management Board
and their widows/widowers amounting to € 2.4 million (previous year: € 2.5 million) as well as defined
contribution plans from deferred compensation of former members of the Management Board and
Managing Directors amounting to € 47.2 million (previous year: € 17.3 million). Both items are recognised
accordingly within pension provisions to the extent they were not offset against plan assets of an equal
amount.
COMPENSATION OF THE SUPERVISORY BOARD
The compensation paid to the Supervisory Board comprised fixed compensation and additional
compensation for committee activities, and amounted to a total of € 0.4 million (previous year:
€ 0.2 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
364
28. DISCLOSURES RELATED TO NON-CONTROLLING INTERESTS
The summarised financial information about subsidiaries of the Group in which non-controlling interests
exist is presented below. This financial information relates to all companies with non-controlling interests in
which the identical non-controlling shareholder holds an interest. The figures represent the amounts before
intercompany eliminations.
Evaluation of the control of companies with non-controlling interests:
The Group holds a 51% capital share in PUMA United North America LLC, PUMA United Canada ULC and
Janed Canada LLC (inactive company). With these companies, there are profit-sharing arrangements in
place which differ from the capital share for the benefit of the respective identical non-controlling
shareholder. PUMA receives higher license fees in exchange.
In addition, there is a shareholding in the capital and the result, amounting to 70%, in the company PUMA
United Aviation North America LLC.
The contractual agreements with these companies respectively provide PUMA with a majority of the voting
rights at the shareholder meetings, and thus the right of disposal regarding these companies. PUMA is
exposed to fluctuating returns from the sales-based license fees and from variable earnings. The Group
also controls the key activities of these companies. The companies are accordingly included in the
consolidated financial statements as subsidiaries with full consolidation with recognition of non-controlling
interests.
The non-controlling interests existing on the balance sheet date relate to PUMA United North America LLC,
PUMA United Canada ULC, Janed Canada, LLC (inactive) and PUMA United Aviation North America LLC at
€ 28.9 million (previous year: € 67.1 million).
The following tables show a summary of the financial information for subsidiaries with non-controlling
interests:
↗ T.88 ASSETS AND LIABILITIES (in € million)
2023
2022
Current assets
112.9
105.8
Non-current assets
8.6
10.3
Current liabilities
85.3
40.4
Non-current liabilities
0.0
0.0
Net assets
36.3
75.7
Net assets attributable to non-controlling interests
28.9
67.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
365
↗ T.89 INCOME STATEMENT (in € million)
2023
2022
Sales
411.8
452.2
Net income
56.8
72.0
Profit attributable to non-controlling interests
55.7
70.9
Other comprehensive income of non-controlling interests
4.3
4.1
Total comprehensive income of non-controlling interests
54.2
75.0
Dividends paid to non-controlling interests
92.4
73.3
↗ T.90 CASH (in € million)
2023
2022
Net cash from operating activities
101.8
79.4
Net cash used in investing activities
-0.3
0.0
Net cash used in financing activities
-101.4
-80.1
Changes in cash and cash equivalents
0.0
-0.4
29. RELATED PARTY RELATIONSHIPS
In accordance with IAS 24, relationships to related companies and persons that control or are controlled by
the PUMA Group must be reported. All natural persons and companies that can be controlled by PUMA, that
can exercise relevant control over the PUMA Group or that are under the relevant control of another related
party of the PUMA Group are considered to be related companies or persons within the meaning of IAS 24.
As of 31 December 2023, there was one shareholding in PUMA SE that exceeded 20% of the voting rights.
This is held by the Pinault family via several companies that the family controls (in order of proximity to the
Pinault family: Financière Pinault S.C.A., Artémis S.A.S. and Kering S.A.). The share of Kering S.A. in
PUMA SE amounted to 1.47% of the share capital at 18 September 2023. Combined, the shareholdings of
Artémis S.A.S. and Kering S.A. amounted to 29.99% of the share capital of PUMA SE at 18 September 2023.
Since Artémis S.A.S. and Kering S.A. hold more than 20% of the voting rights in PUMA SE, they are
presumed to have significant influence according to IAS 28.5 and IAS 28.6. They and all other companies
directly or indirectly controlled by Financière Pinault S.C.A. that are not included in the consolidated
financial statements of PUMA SE are considered as related parties in the following.
In addition, the disclosure obligation pursuant to IAS 24 extends to transactions with associated companies
as well as transactions with other related companies and persons.
Transactions with related companies and persons largely concern sales of goods and licensing agreements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
366
The following overview illustrates the scope of the business relationships:
↗ T.91 DELIVERIES AND SERVICES RENDERED AND RECEIVED (in € million)
Deliveries and services rendered
Deliveries and services received
2023
2022
2023
2022
Companies included in the Artémis Group
2.1
1.7
0.0
0.1
Other related companies and persons
0.0
0.0
0.0
0.0
Total
2.1
1.7
0.0
0.1
↗ T.92 NET RECEIVABLES AND LIABILITIES (in € million)
Net receivables from
Liabilities to
2023
2022
2023
2022
Companies included in the Artémis Group
0.3
0.3
0.0
0.0
Other related companies and persons
0.0
0.0
0.0
0.0
Total
0.3
0.3
0.0
0.0
Receivables from related companies and persons are not subject to value adjustments.
Classification of the remuneration of key management personnel in accordance with IAS 24.17:
The members of key management personnel in accordance with IAS 24 are the Management Board and the
Supervisory Board. These are counted as related parties.
In financial year 2023, the remuneration of the members of the Management Board of PUMA SE for short-
term benefits amounted to € 6.1 million (previous year: € 7.2 million), for termination benefits to
€ 0.0 million (previous year: € 0.0 million) and the share-based payment € 1.4 million (previous year:
€ -0.5 million). Furthermore, just like in the previous year, no remuneration was granted in the form of
other long-term benefits or in the form of post-employment benefits in the reporting year. Accordingly, the
total expenditure for the reporting year amounted to € 7.5 million (previous year: € 6.7 million).
In financial year 2023, the remuneration of the members of the Supervisory Board of PUMA SE for short-
term benefits amounted to € 0.4 million (previous year: € 0.2 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
367
30. CORPORATE GOVERNANCE
In November 2023, the Management Board and the Supervisory Board submitted the required compliance
declaration with respect to the recommendations issued by the Government Commission German Corporate
Governance Code pursuant to Section 161 of the German Stock Corporation Act (Aktiengesetz – AktG) and
published it on the Company's website (https://about.PUMA.com). Please also refer to the corporate
governance statement in accordance with section 289f and section 315d HGB (Handelsgesetzbuch, German
Commercial Code) in the Combined Management Report.
31. EVENTS AFTER THE BALANCE SHEET DATE
No events with any significant effect on the net assets, financial position and results of operations of the
PUMA Group occurred after the balance sheet date.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
368
32. DATE OF RELEASE
The Management Board of PUMA SE released the consolidated financial statements on 7 February 2024 for
distribution to the Supervisory Board. The task of the Supervisory Board is to review the consolidated
financial statements and state whether it approves them.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
This is a translation of the German version. In case of doubt, the German version shall apply.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
369
APPENDIX 1 OF THE CONSOLIDATED FINANCIAL STATEMENT
MEMBERS OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD AND THEIR MANDATES
STATUS: 31 DECEMBER 2023
MEMBERS OF THE MANAGEMENT BOARD AND THEIR MANDATES
Arne Freundt
Chief Executive Officer (CEO)
Hubert Hinterseher
Chief Financial Officer (CFO)
Anne-Laure Descours
Chief Sourcing Officer (CSO)
Maria Valdes (since 1 January 2023)
Chief Product Officer (CPO)
MEMBERS OF THE SUPERVISORY BOARD AND THEIR MANDATES
Héloïse Temple-Boyer (first elected on 18 April 2019)
(Chair)
Paris, France
Deputy CEO of ARTÉMIS S.A.S., Paris/France
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises
2
• Kering S.A., Paris/France
• Christie's International Plc., London/ United Kingdom
• CAA LL.C., Los Angeles/USA
• Giambattista Valli S.A.S., Paris/France
• Société d'exploitation de l’hebdomadaire le Point S.A., Paris/France
• Pinault Collection, Paris/France
2
All mandates are mandates within the ARTÈMIS/KERING-Group. Only Kering S.A. is a listed company.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
370
Thore Ohlsson (first elected on 21 May 1993)
(Deputy Chair)
Falsterbo, Sweden
President of Elimexo AB, Falsterbo/Sweden
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
• Tomas Frick AB, Vellinge/Sweden
• Orrefors Kosta Boda AB, Kosta/Sweden
• Infinitive AB, Malmö/Sweden
• Friskvårdcenter AB, Malmö/Sweden
• Totestories AB, Vellinge/Sweden
Jean-Marc Duplaix (first elected on 24 May 2023)
Paris, France
Deputy CEO of Kering S.A., Paris/France
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises
3:
• Balenciaga S.A., Paris/Frankreich
Jean-François Palus (first elected on 16 June 2007, until 24 May 2023)
Paris, France
Managing Director of Guccio Gucci S.p.A., Florence/Italy
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
• Financière Pinault S.C.A., Paris/France
• Sonova Management S.A.S., Paris/France
• Bureau Veritas S.A., Paris/France
Fiona May (first elected on 18 April 2019)
Calenzano, Italy
Independent Management Consultant
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
3
The mandate is a mandate within the Kering Group. Kering S.A. is a listed company. Balenciaga S.A. is not listed
PUMA Annual Report 2023
↗ Consolidated Financial Statements
371
Martin Köppel (first elected on 25 July 2011)
(Employees‘ Representative)
Adelsdorf, Germany
Chair of the Works Council of PUMA SE
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
Bernd Illig (first elected on 9 July 2018)
(Employees‘ Representative)
Bechhofen, Germany
Teamhead IT Endpoint Management of PUMA SE
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
SUPERVISORY BOARD COMMITTEES
Personnel Committee
• Héloïse Temple-Boyer (Chair)
• Fiona May
• Martin Köppel
Audit Committee
• Jean-Marc Duplaix (Chair since 24 May 2023)
• Thore Ohlsson (Chair until 24 May 2023)
• Héloïse Temple-Boyer (until 24 May 2023)
• Bernd Illig
Nominating Committee
• Héloïse Temple-Boyer (Chair)
• Jean-François Palus (until 24 May 2023)
• Fiona May
• Jean-Marc Duplaix (since 24 May 2023)
Sustainability Committee
• Fiona May (Chair)
• Héloïse Temple-Boyer
• Martin Köppel
PUMA Annual Report 2023
↗ Consolidated Financial Statements
372
DECLARATION BY THE LEGAL REPRESENTATIVES
We state to the best of our knowledge that the consolidated financial statements give a true and fair view of
the net assets, financial position and results of operations of the Group in accordance with the applicable
accounting principles, and that the Group management report, which is combined with the Management
report of PUMA SE for the financial year 2023, provides a true and fair view of the course of the development
and performance of the business and the position of the Group, together with a description of the principal
risks and opportunities associated with the expected performance of the Group.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
PUMA Annual Report 2023
↗ Consolidated Financial Statements
373
INDEPENDENT AUDITOR’S REPORT
For the Consolidated Financial Statements and Group Management Report we have issued an unqualified
auditor’s report. The English language text below is a translation of the auditor’s report. The original
German text shall prevail in the event of any discrepancies between the English translation and the
German original. We do not accept any liability for the use of, or reliance on, the English translation or for
any errors or misunderstandings that may derive from the translation.
To PUMA SE, Herzogenaurach
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE
COMBINED MANAGEMENT REPORT
OPINIONS
We have audited the consolidated financial statements of PUMA SE, Herzogenaurach, and its subsidiaries
(the Group), which comprise the consolidated statement of financial position as of December 31, 2023, the
consolidated income statement, the consolidated statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the financial year from
January 1 to December 31, 2023, and notes to the consolidated financial statements, including a summary of
significant accounting policies. In addition, we have audited the management report of the Company and the
Group (combined management report) of PUMA SE for the financial year from January 1 to
December 31, 2023.
In accordance with German legal requirements, we have not audited the content of those components of the
combined management report specified in the "Other Information" section of our auditor's report.
The combined management report contains cross-references that are not provided for by law and which are
marked as unaudited. In accordance with German legal requirements, we have not audited the cross-
references and the information to which the cross-references refer.
In our opinion, on the basis of the knowledge obtained in the audit,
• the accompanying consolidated financial statements comply, in all material respects, with the IFRSs as
adopted by the EU, and the additional requirements of German commercial law pursuant to Section
315e (1) HGB [Handelsgesetzbuch: German Commercial Code] and, in compliance with these
requirements, give a true and fair view of the assets, liabilities, and financial position of the Group as of
December 31, 2023, and of its financial performance for the financial year from January 1 to
December 31, 2023, and
• the accompanying combined management report as a whole provides an appropriate view of the Group's
position. In all material respects, this combined management report is consistent with the consolidated
financial statements, complies with German legal requirements and appropriately presents the
opportunities and risks of future development. Our opinion on the combined management report does
not cover the content of those components of the combined management report specified in the "Other
Information" section of the auditor's report. The combined management report contains cross-
references that are not provided for by law and which are marked as unaudited. Our audit opinion does
not extend to the cross-references and the information to which the cross-references refer.
Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated financial statements and of the combined management
report.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
374
BASIS FOR THE OPINIONS
We conducted our audit of the consolidated financial statements and of the combined management report in
accordance with Section 317 HGB and the EU Audit Regulation No 537/2014 (referred to subsequently as
"EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial
Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany]
(IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's
Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management
Report" section of our auditor's report. We are independent of the group entities in accordance with the
requirements of European law and German commercial and professional law, and we have fulfilled our
other German professional responsibilities in accordance with these requirements. In addition, in
accordance with Article 10 (2)(f) of the EU Audit Regulation, we declare that we have not provided non-audit
services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis for our opinions on the consolidated financial
statements and on the combined management report.
KEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the financial year from January 1 to December 31, 2023.
These matters were addressed in the context of our audit of the consolidated financial statements as a
whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.
Revenue recognition cut-off for wholesale customers
For information on the accounting policies applied, please refer to Sections 2 and 19 in the notes to the
consolidated financial statements.
THE FINANCIAL STATEMENT RISK
The consolidated financial statements of PUMA SE for financial year 2023 report revenue of
EUR 8,601.7 million. Revenue includes revenue of EUR 6,468.6 million from the sale of goods to wholesale
customers.
The Group recognizes revenue from the sale of goods to wholesale customers when it fulfils a performance
obligation through the transfer of a promised asset to a customer. An asset is transferred when (or as) the
customer obtains control of that asset. In accordance with the transfer of control, revenue from wholesale
customers is recognized at a point in time in the amount to which the Group is entitled.
The Management Board of PUMA SE has defined the criteria for the recognition of revenue at a point in time
in a group-wide accounting policy and implemented processes for correct recognition and cut-off.
In the final weeks prior to the reporting date, a range of transactions with wholesale customers take place
with individual contractual agreements on the transfer of risk. In addition, there are internally defined and
externally communicated revenue targets for the financial year, which represent a key benchmark for
measuring corporate success.
There is the risk for the consolidated financial statements that revenue in the reporting year is overstated
due to it being recognized in the wrong period, meaning that it is not recorded on an accrual basis.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
375
OUR AUDIT APPROACH
In order to audit revenue recognition cut-off for wholesale customers, we assessed the design, setup and
effectiveness of the internal controls relating to outgoing goods and the acceptance of goods and invoicing,
in particular the determination and verification of the correct transfer of control. In addition, we reviewed
the presentation of revenue recognition in the group-wide accounting policy to ensure compliance with
IFRS 15.
Furthermore, we assessed revenue recognition cut-off for wholesale customers by reconciling invoices with
the related orders, underlying contracts and external delivery records. This was based on revenue
recognized at the end of December 2023 and selected using a mathematical/statistical procedure.
OUR OBSERVATIONS
PUMA SE's approach to revenue recognition cut-off with wholesale customers is appropriate.
Impairment testing of right-of-use assets for retail stores
For information on the accounting policies applied, please refer to Sections 2 and 10 in the notes to the
consolidated financial statements.
THE FINANCIAL STATEMENT RISK
As of December 31, 2023, right-of-use assets of EUR 1,087.7 million are recognized in the consolidated
financial statements of PUMA SE. A significant portion of the right-of-use assets is attributable to retail
stores (EUR 464.2 million). Right-of-use assets amount to 16.4% of total assets and thus have a material
influence on the Company's net assets.
Owing to the large number of leases and the resulting transactions, the Company has set up group-wide
processes and controls for the measurement of leases.
Right-of-use assets for retail stores are tested for impairment at the level of the individual retail stores as
cash-generating units. The impairment test compares the carrying amount of the cash-generating unit with
its recoverable amount. The Company determines the recoverable amount for the retail stores indicating
potential impairment by using the discounted cash flow method. If the carrying amount exceeds the
recoverable amount, an impairment loss is recognized for the right-of-use asset of the cash-generating
unit. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use.
Impairment testing of right-of-use assets for retail stores is complex and based on a range of assumptions
that require judgment. Among others, these include the business and earnings performance of the retail
store for the next year, the assumed growth rates, the applied discount rate and the use of extension
options. The Company recognized impairment losses in the amount of EUR 5.7 million for right-of-use
assets for retail stores during the financial year.
In particular owing to the judgments for measuring right-of-use assets for retail stores, there is the risk for
the consolidated financial statements that an impairment of right-of-use assets may not be identified.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
376
OUR AUDIT APPROACH
Using the information obtained during our audit, we assessed whether there were any indicators of
impairment for right-of-use assets for retail stores. In doing so, we thoroughly examined the Company's
approach to determining the need to recognize impairment losses and, based on the information obtained in
the course of our audit, assessed whether there were any indications of impairment that had not been
identified by the Company.
With the involvement of our valuation specialists, for a sample of retail stores selected based on risk, we
then assessed (among other things) the appropriateness of the Company's calculation method. For this
purpose we discussed the expected business and earnings development for the retail stores selected in this
sample and the assumed growth rates with those responsible for planning. Where accounting judgments
were made for determining the lease term, we examined these judgments to determine whether the
underlying assumptions were comprehensible in light of the prevailing market conditions and risks in the
industry.
We also assessed the accuracy of the Company's previous forecasts for the affected right-of-use assets by
comparing the budgets from the previous financial year for the selected retail stores in the sample with the
actual results, and we analyzed any deviations. Further, we compared the assumptions and data underlying
the discount rates with our own assumptions and publicly available data. We also assessed whether the
calculation method for the discount rate was appropriate.
We verified the computational accuracy of the carrying amount of the right-of-use assets determined by
PUMA SE for the retail stores included in the sample.
In order to take forecast uncertainty into account, we examined the impact of potential changes in the
discount rate, earnings performance and long-term growth rates on the value in use by calculating
alternative scenarios for the selected sample and comparing these with the values stated by the Company
(sensitivity analysis).
OUR OBSERVATIONS
The calculation method used for impairment testing of right-of-use assets for retail stores is appropriate
and in line with the accounting policies to be applied.
The Company's assumptions and data used for the measurement of the right-of-use assets for retail stores
are appropriate.
OTHER INFORMATION
The Management Board and/or the Supervisory Board is responsible for the other information. The other
information comprises the following components of the combined management report, whose content was
not audited:
• the Company's and Group's separate combined non-financial report, which is referred to in the
combined management report, and
• the combined corporate governance statement for the Company and Group, which is included in a
separate section of the combined management report, and
• information extraneous to combined management reports and marked as unaudited.
The other information also includes the annual report, which is expected to be made available to us after
the date of this independent auditor's report. The other information does not include the consolidated
financial statements, the combined management report information audited for content and our auditor's
report thereon.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
377
Our opinions on the consolidated financial statements and on the combined management report do not
cover the other information, and consequently we do not express an opinion or any other form of assurance
conclusion thereon.
In connection with our audit, our responsibility is to read the other information and, in so doing, to consider
whether the other information
• is materially inconsistent with the consolidated financial statements, with the combined management
report information audited for content or our knowledge obtained in the audit, or
• otherwise appears to be materially misstated.
RESPONSIBILITIES OF THE MANAGEMENT BOARD AND THE SUPERVISORY BOARD FOR THE
CONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT
The Management Board is responsible for the preparation of consolidated financial statements that comply,
in all material respects, with IFRSs as adopted by the EU and the additional requirements of German
commercial law pursuant to Section 315e (1) HGB and that the consolidated financial statements, in
compliance with these requirements, give a true and fair view of the assets, liabilities, financial position,
and financial performance of the Group. In addition, the Management Board is responsible for such internal
control as it has determined necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and
misappropriation of assets) or error.
In preparing the consolidated financial statements, the Management Board is responsible for assessing the
Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable,
matters related to going concern. In addition, they are responsible for financial reporting based on the going
concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or
there is no realistic alternative but to do so.
Furthermore, the Management Board is responsible for the preparation of the combined management
report that, as a whole, provides an appropriate view of the Group’s position and is, in all material respects,
consistent with the consolidated financial statements, complies with German legal requirements, and
appropriately presents the opportunities and risks of future development. In addition, the Management
Board is responsible for such arrangements and measures (systems) as they have considered necessary to
enable the preparation of a combined management report that is in accordance with the applicable German
legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the
combined management report.
The Supervisory Board is responsible for overseeing the Group's financial reporting process for the
preparation of the consolidated financial statements and of the combined management report.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF
THE COMBINED MANAGEMENT REPORT
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and whether the combined
management report as a whole provides an appropriate view of the Group’s position and, in all material
respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit,
complies with the German legal requirements and appropriately presents the opportunities and risks of
future development, as well as to issue an auditor’s report that includes our opinions on the consolidated
financial statements and on the combined management report.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
378
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally
Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW)
will always detect a material misstatement. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements and this combined
management report.
We exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements and of
the combined management report, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than
the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal controls.
• Obtain an understanding of internal control relevant to the audit of the consolidated financial statements
and of arrangements and measures (systems) relevant to the audit of the combined management report
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of these systems.
• Evaluate the appropriateness of accounting policies used by the Management Board and the
reasonableness of estimates made by the Management Board and related disclosures.
• Conclude on the appropriateness of the Management Board's use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group's ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's
report to the related disclosures in the consolidated financial statements and in the combined
management report or, if such disclosures are inadequate, to modify our respective opinions. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the Group to cease to be able to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements present the underlying
transactions and events in a manner that the consolidated financial statements give a true and fair view
of the assets, liabilities, financial position and financial performance of the Group in compliance with
IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to
Section 315e (1) HGB.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express opinions on the consolidated financial statements and on
the combined management report. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our opinions.
• Evaluate the consistency of the combined management report with the consolidated financial
statements, its conformity with [German] law, and the view of the Group's position it provides.
• Perform audit procedures on the prospective information presented by the Management Board in the
combined management report. On the basis of sufficient appropriate audit evidence we evaluate, in
particular, the significant assumptions used by the Management Board as a basis for the prospective
information, and evaluate the proper derivation of the prospective information from these assumptions.
We do not express a separate opinion on the prospective information and on the assumptions used as a
basis. There is a substantial unavoidable risk that future events will differ materially from the
prospective information.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
379
We also provide those charged with governance with a statement that we have complied with the relevant
independence requirements, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, the actions taken or safeguards
applied to eliminate independence threats.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation
precludes public disclosure about the matter.
OTHER LEGAL AND REGULATORY REQUIREMENTS
REPORT ON THE ASSURANCE ON THE ELECTRONIC RENDERING OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND THE COMBINED MANAGEMENT REPORT PREPARED FOR PUBLICATION PURPOSES IN
ACCORDANCE WITH SECTION 317 (3A) HGB
We have performed assurance work in accordance with Section 317 (3a) HGB to obtain reasonable
assurance about whether the rendering of the consolidated financial statements and the combined
management report (hereinafter the "ESEF documents") contained in the electronic file „PUMA KA 2023.zip“
(SHA256-Hashwert: 3d9c82efdcc3657b21661fc4c90debfbfafac65be5b3f152055611b47a544d9b) made available
and prepared for publication purposes complies in all material respects with the requirements of
Section 328 (1) HGB for the electronic reporting format ("ESEF format"). In accordance with German legal
requirements, this assurance work extends only to the conversion of the information contained in the
consolidated financial statements and the combined management report into the ESEF format and
therefore relates neither to the information contained in these renderings nor to any other information
contained in the file identified above.
In our opinion, the rendering of the consolidated financial statements and the combined management
report contained in the electronic file made available, identified above and prepared for publication
purposes complies in all material respects with the requirements of Section 328 (1) HGB for the electronic
reporting format. Beyond this assurance opinion and our audit opinion on the accompanying consolidated
financial statements and the accompanying combined management report for the financial year from
January 1 to December 31, 2023, contained in the "Report on the Audit of the Consolidated Financial
Statements and the Combined Management Report" above, we do not express any assurance opinion on the
information contained within these renderings or on the other information contained in the file identified
above.
We conducted our assurance work on the rendering of the consolidated financial statements and the
combined management report contained in the file made available and identified above in accordance with
Section 317 (3a) HGB and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of
Financial Statements and Management Reports Prepared for Publication Purposes in Accordance with
Section 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibility in accordance therewith is further described
below. Our audit firm applies the IDW Standard on Quality Management 1: Requirements for Quality
Management in Audit Firms (IDW QMS 1) (09.2022).
Owing to the conversion process selected by the Company concerning the information in the notes in iXBRL
format (block tagging), the consolidated financial statements converted into the ESEF format are not
machine-readable in a fully meaningful respect. There is significant legal uncertainty regarding the legal
conformity of the Management Board's interpretation that meaningful machine-readability of the structured
information in the notes is not explicitly required by Commission Delegated Regulation (EU) 2019/815 for the
block tagging of the notes, which thus also constitutes an inherent uncertainty of our audit.
The Company's Management Board is responsible for the preparation of the ESEF documents including the
electronic rendering of the consolidated financial statements and the combined management report in
PUMA Annual Report 2023
↗ Consolidated Financial Statements
380
accordance with Section 328 (1) sentence 4 item 1 HGB and for the tagging of the consolidated financial
statements in accordance with Section 328 (1) sentence 4 item 2 HGB.
In addition, the Company's Management Board is responsible for such internal control that they have
considered necessary to enable the preparation of ESEF documents that are free from material intentional
or unintentional non-compliance with the requirements of Section 328 (1) HGB for the electronic reporting
format.
The Supervisory Board is responsible for overseeing the process of preparing the ESEF documents as part
of the financial reporting process.
Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material
intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB. We exercise
professional judgment and maintain professional skepticism throughout the assurance work. We also:
• Identify and assess the risks of material intentional or unintentional non-compliance with the
requirements of Section 328 (1) HGB, design and perform assurance procedures responsive to those
risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our
assurance opinion.
• Obtain an understanding of internal control relevant to the assurance on the ESEF documents in order to
design assurance procedures that are appropriate in the circumstances, but not for the purpose of
expressing an assurance opinion on the effectiveness of these controls.
• Evaluate the technical validity of the ESEF documents, i.e. whether the file made available containing the
ESEF documents meets the requirements of Commission Delegated Regulation (EU) 2019/815, as
amended as of the reporting date, on the technical specification for this electronic file.
• Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the
audited consolidated financial statements and the audited combined management report.
• Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance
with the requirements of Articles 4 and 6 of the Commission Delegated Regulation (EU) 2019/815, as
amended as of the reporting date, enables an appropriate and complete machine-readable XBRL copy of
the XHTML rendering.
FURTHER INFORMATION PURSUANT TO ARTICLE 10 OF THE EU AUDIT REGULATION
We were elected as group auditor at the Annual General Meeting on May 24, 2023. We were engaged by the
Supervisory Board on November 21, 2023. We have been the group auditor of PUMA SE without interruption
since financial year 2022.
We declare that the opinions expressed in this auditor's report are consistent with the additional report to
the Audit Committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).
OTHER MATTER – USE OF THE AUDITOR'S REPORT
Our auditor's report must always be read together with the audited consolidated financial statements and
the audited combined management report as well as the examined ESEF documents. The consolidated
financial statements and combined management report converted to the ESEF format – including the
versions to be entered in the German Company Register [Unternehmensregister] – are merely electronic
renderings of the audited consolidated financial statements and the audited combined management report
and do not take their place. In particular, the ESEF report and our assurance opinion contained therein are
to be used solely together with the examined ESEF documents made available in electronic form.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
381
GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT
The German Public Auditor responsible for the engagement is Matthias Koeplin.
Nuremberg, February 9, 2024
KPMG AG
Wirtschaftsprüfungsgesellschaft
Koeplin
Wirtschaftsprüfer
[German Public Auditor]
Behrendt
Wirtschaftsprüferin
[German Public Auditor]
PUMA Annual Report 2023
↗ Additional Information
382
ADDITIONAL INFORMATION
The PUMA Share
383
PUMA Year-on-Year Comparison
385
PUMA Group Development
387
PUMA Annual Report 2023
↗ Additional Information
383
THE PUMA SHARE
The 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
thus 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
€ 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 / -
21.8%) 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
423 thousand shares in financial year 2023.
↗ T.01 KEY DATA PER SHARE*
2023
2022
2021
2020
2019
2018
2017
End of year price
€
50.52
56.70
107.50
92.28
68.35
42.70
36.30
Highest price listed
€
67.22
108.00
114.70
92.28
72.95
52.50
39.14
Lowest price listed
€
44.36
43.85
80.42
42.14
43.00
31.70
24.35
Daily trading volume (Ø)
amount in
thousands
423
519
281
423
387
444
67
Earnings per share
€
2.03
2.36
2.07
0.53
1.76
1.25
9.09
Gross cashflow per share
€
6.43
6.14
5.49
3.50
4.71
2.66
2.21
Free cashflow (before acquisitions) per
share
€
2.46
1.19
1.85
1.85
2.22
1.00
0.86
Shareholders' equity per share
€
17.23
16.97
15.23
11.79
12.84
11.52
11.09
Dividend per share
€
0.82
0.82
0.72
0.16
0.50
0.35
1.25**
*
Disclosures for the prior periods were adjusted retroactively to the 1:10 stock split carried out in the second quarter of 2019
** one time/special dividend
PUMA Annual Report 2023
↗ Additional Information
384
↗ G.01 PUMA SHARE PERFORMANCE / TRADING VOLUME
↗ G.02 SHARE DEVELOPMENT - REBASED
The PUMA share has been registered for the regulated market on German stock exchanges since 1986. It is
listed in the Prime Standard Segment and the Mid-Cap Index MDAX of the German Stock Exchange
(Deutsche Börse). Moreover, membership in the FTSE4Good index was once again confirmed.
PUMA Annual Report 2023
↗ Additional Information
385
PUMA YEAR-ON-YEAR COMPARISON
↗ T.02 PUMA YEAR-ON-YEAR COMPARISON (in € million)
2023
2022
Deviation
Sales
Consolidated sales
8,601.7
8,465.1
1.6%
- Footwear
4,583.4
4,317.9
6.1%
- Apparel
2,763.0
2,896.3
-4.6%
- Accessories
1,255.3
1,251.0
0.3%
Result of operations
Gross profit
3,986.6
3,902.7
2.1%
EBIT
621.6
640.6
-3.0%
EBT
478.3
551.7
-13.3%
Net earnings attributable to shareholders of PUMA SE
304.9
353.5
-13.7%
Profitability
Gross profit margin
46.3%
46.1%
0.2%pt
EBT margin
5.6%
6.5%
-1.0%pt
Net earnings margin
3.5%
4.2%
-0.6%pt
Return on capital employed (ROCE)
25.1%
28.4%
-3.3%pt
Return on equity (ROE)
11.8%
13.9%
-2.1%pt
Balance sheet
Total equity
2,582.3
2,538.8
1.7%
- Equity ratio
38.9%
37.5%
1.4%pt
Working capital
1,177.3
1,086.8
8.3%
- in % of consolidated sales
13.7%
12.8%
0.8%pt
Cash flow and investments
Gross cash flow
964.1
918.9
4.9%
Free cash flow
369.0
177.5
107.9%
Investments (before acquisitions)
300.4
263.6
13.9%
PUMA Annual Report 2023
↗ Additional Information
386
2023
2022
Deviation
Employees
Number of employees (annual average)
18,023
16,669
8.1%
Sales per employee (k€)
477.3
507.8
-6.0%
PUMA share
Share price (in €)
50.52
56.70
-10.8%
Average outstanding shares (in million)
149.85
149.65
0.1%
Number of shares outstanding as of 31 Dec. (in million shares)
149.84
149.76
0.1%
Earnings per share (in €)
2.03
2.36
-14.0%
Market capitalization
7,570
8,491
-10.8%
Average trading volume (amount/day)
423,200
519,477
-18.5%
PUMA Annual Report 2023
↗ Additional Information
387
PUMA GROUP DEVELOPMENT
↗ T.03 PUMA GROUP DEVELOPMENT (in € million)
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Sales
Consolidated sales
8,601.7
8,465.1
6,805.4
5,234.4
5,502.2
4,648.3
4,135.9
3,626.7
3,387.4
2,972.0
- Change in %
1.6%
24.4%
30.0%
-4.9%
18.4%
12.4%
14.0%
7.1%
14.0%
-0.4%
- Footwear
4,583.4
4,317.9
3,163.6
2,367.6
2,552.5
2,184.7
1,974.5
1,627.0
1,506.1
1,282.7
- Apparel
2,763.0
2,896.3
2,517.3
1,974.1
2,068.7
1,687.5
1,441.4
1,333.2
1,244.8
1,103.1
- Accessories
1,255.3
1,251.0
1,124.5
892.7
881.1
776.1
719.9
666.5
636.4
586.3
Result of operations
Gross profit
3,986.6
3,902.7
3,257.8
2,458.0
2,686.4
2,249.4
1,954.3
1,656.4
1,540.2
1,385.4
- Gross profit margin
46.3%
46.1%
47.9%
47.0%
48.8%
48.4%
47.3%
45.7%
45.5%
46.6%
Royalty and commission income
38.5
33.8
23.9
16.1
25.1
16.3
15.8
15.7
16.5
19.4
EBIT
621.6
640.6
557.1
209.2
440.2
337.4
244.6
127.6
96.3
128.0
- EBIT margin
7.2%
7.6%
8.2%
4.0%
8.0%
7.3%
5.9%
3.5%
2.8%
4.3%
EBT
478.3
551.7
505.3
162.3
417.6
313.4
231.2
118.9
85.0
121.8
- EBT margin
5.6%
6.5%
7.4%
3.1%
7.6%
6.7%
5.6%
3.3%
2.5%
4.1%
Net earnings attributable to shareholders of PUMA SE
304.9
353.5
309.6
78.9
262.4
187.4
135.8
62.4
37.1
64.1
- Net margin
3.5%
4.2%
4.5%
1.5%
4.8%
4.0%
3.3%
1.7%
1.1%
2.2%
PUMA Annual Report 2023
↗ Additional Information
388
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Expenses
Marketing/retail
1,643.2
1,578.5
1,309.1
1,050.2
1,112.1
931.2
822.9
732.3
697.6
599.7
Personnel
900.6
846.5
712.4
583.7
640.5
553.8
549.1
493.1
483.8
425.3
Balance sheet
Total assets
6,640.4
6,772.7
5,728.3
4,684.1
4,378.2
3,207.2
2,853.8
2,765.1
2,620.3
2,549.9
Total equity
2,582.3
2,538.8
2,278.5
1,763.9
1,902.3
1,722.2
1,656.7
1,722.2
1,619.3
1,618.3
- Equity ratio
38.9%
37.5%
39.8%
37.7%
43.4%
53.7%
58.1%
62.3%
61.8%
63.5%
Working capital
1,177.3
1,086.8
727.9
465.8
549.4
503.9
493.9
536.6
532.9
455.7
- thereof: inventories
1,804.4
2,245.1
1,492.2
1,138.0
1,110.2
915.1
778.5
718.9
657.0
571.5
Cash flow
Free cash flow
369.0
177.5
276.2
276.0
330.0
172.9
128.5
49.7
-98.9
39.3
Investments (incl. acquisitions)
300.4
263.6
202.4
151.0
218.4
130.2
122.9
91.1
79.5
96.4
Profitability
Return on equity (ROE)
11.8%
13.9%
13.6%
4.5%
13.8%
10.9%
8.2%
3.6%
2.3%
4.0%
Return on capital employed (ROCE)
25.1%
28.4%
31.9%
15.1%
29.6%
25.8%
20.7%
10.3%
7.9%
11.5%
PUMA Annual Report 2023
↗ Additional Information
389
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Additional information
Number of employees (year-end)
18,681
18,071
16,125
14,374
14,332
12,894
11,787
11,495
11,351
11,267
Number of employees (annual average)
18,023
16,669
14,846
13,016
13,348
12,192
11,389
11,128
10,988
10,830
PUMA share*
Share price (in €)
50.52
56.70
107.50
92.28
68.35
42.70
36.30
24.97
19.87
17.26
Earnings per share (in €)
2.03
2.36
2.07
0.53
1.76
1.25
0.91
0.42
0.25
0.43
Average outstanding shares (in million)
149.85
149.65
149.59
149.56
149.52
149.47
149.43
149.40
149.40
149.40
Number of shares outstanding as of 31 Dec.
(in million shares)
149.84
149.76
149.61
149.58
149.55
149.51
149.46
149.40
149.40
149.40
Market capitalization
7,570
8,491
16,083
13,804
10,222
6,384
5,426
3,730
2,968
2,578
*
Disclosures for the prior periods were adjusted retroactively to the 1:10 stock split carried out in the second quarter of 2019
PUMA Annual Report 2023
↗ Imprint
390
IMPRINT
PUBLISHER
PUMA SE
PUMA Way 1
91074 Herzogenaurach
Germany
+49 (0)9132 81-0
www.about.puma.com
CORPORATE COMMUNICATIONS
Kerstin Neuber
Senior Director Corporate Communications
kerstin.neuber@puma.com
INVESTOR RELATIONS
Gottfried Hoppe
Director Investor Relations & Finance Strategy
gottfried.hoppe@puma.com
PEOPLE & ORGANIZATION
Dietmar Knoess
Vice President People & Organization
dietmar.knoess@puma.com
SUSTAINABILITY
Stefan Seidel
Senior Director Corporate Sustainability
stefan.seidel@puma.com
Veronique Rochet
Senior Director Sustainability
veronique.rochet@puma.com
DESIGN AND LAYOUT
3st kommunikation GmbH
www.3st.de
REALISATION
Produced inhouse with firesys
www.firesys.de
HALF-YEAR FINANCIAL REPORT
JANUARY TO JUNE 2024
2
CONTENT
Key Figures
3 - 4
Interim Management Report
- General Economic Conditions
5
- Brand and Strategy Update
5 - 8
- Sales and Earnings Development
9 - 11
- Net Assets and Financial Position
12
- Outlook
13
Condensed Interim Consolidated Financial Statements
- Balance Sheet
14
- Income Statement
15
- Statement of Comprehensive Income
16
- Cashflow Statement
17
- Statement of Changes in Equity
18
- Operating Segments
19 - 20
- Notes to the Interim Consolidated Financial Statements
21 – 27
Management Board / Supervisory Board
28
Financial Calendar
29
3
Arne Freundt, CEO:
“With our second quarter operating performance,
we fully delivered on our outlook for the quarter and
are well on track to deliver on our outlook for the full
year. I could not be prouder of our team and our
strong retail partnerships, which were key to
delivering this result in an environment of increased
currency headwinds, stressed supply chains and
macroeconomic and geopolitical challenges that are
weighing on consumer sentiment around the world.
With view to our strong orderbook for the second
half of the year, we reiterate our sales growth
outlook in the MSD range and are narrowing our full-
year EBIT outlook range to € 620 – 670 million EBIT
in light of these external factors.
With our continued focus on a good sell-through and
disciplined sell-in, we were able to improve our
wholesale business in all regions, except EEMEA.
With our strong order book for the second half of
the year, we will see further improvement in our
wholesale business in the coming quarters. The
robust demand for the PUMA brand continues to be
driven by our great product newness and innovation
which we launched in the past months. There is
more to come in the second half of the year.
Key Figures
1-6/2024
1-6/2023
Devi-
€ million
€ million
ation
Sales
4,219.6
4,308.3
-2.1%
Gross profit margin
47.2%
45.7%
Operating result (EBIT)
276.2
290.9
-5.1%
Net income
129.3
172.3
-25.0%
- in % of sales
3.1%
4.0%
Total assets
6,966.3
6,899.7
1.0%
Equity ratio in %
38.1%
37.1%
Working capital
1,643.7
1,693.0
-2.9%
Gross cash flow
388.1
491.4
-21.0%
Free cash flow (before acquisitions)
-204.4
-341.4
Earnings per share (in €)
0.86
1.15
-25.0%
Gross cash flow per share (in €)
2.59
3.28
-21.0%
Free cash flow per share (before acquisitions) (in €)
-1.36
-2.28
Share price at end of the reporting period (in €)
42.87
55.12
-22.2%
Market capitalisation at end of the reporting period
6,397
8,255
-22.5%
Investments in property, plant and equipment and intangible assets
125.4
158.0
-20.7%
4
On the performance side, ULTRA, PUMA’s fastest
football boot, Deviate Nitro Elite 3, PUMA’s fastest
running shoe, and MB.04, PUMA’s latest version of
its bestseller signature shoe with LaMelo Ball will be
the key newness and innovations for the second half
of 2024. Together with our new design partner
Salehe Bembury, we will continue to stir up the
basketball market with new disruptive designs in the
coming year.
On the Sportstyle side, we are continuing to see
strong sell-through with our family footwear retail
partners, while we are making good progress in the
transition of our Sportstyle Prime offer with Palermo,
Suede XL and Easy Rider. We are very encouraged
by the first launches of Speedcat in the elevated
distribution channels globally and by the great
feedback of our retail partners on our product line-
up. We are very confident about the future success
of the low-profile silhouette and are happy to
welcome Rosé, the iconic K-Pop star, as great new
ambassador for this emerging trend.
We continue to focus our efforts on increasing the
brand desirability for the long-term growth of the
PUMA brand. With our first global brand campaign
in ten years, we have done the first steps and
improved our brand consideration with consumers.
Delivering great innovation and newness are further
pillars of that strategy. With the Euros, Copa
America and now the Olympics, we have the perfect
stage to create great brand visibility and credibility
in our unmissable “fireglow” shoe colourway and
showcase the superiority of our Nitro foam
technology which enhances the performance of elite
and everyday athletes. We are very proud of the
achievements of our athletes and are grateful to
celebrate these amazing sporting events and iconic
moments together with them.”
5
Interim Management Report
GENERAL ECONOMIC CONDITIONS
According to the summer forecast published by the
Kiel Institute for the World Economy (ifw Kiel) on 13
June 2024, the global economy has expanded at a
moderate pace so far this year. The main reason for
this was that production in the emerging economies
- and particularly in China - grew much more
strongly than before. In the advanced economies,
on the other hand, economic expansion continued at
a somewhat slower pace overall.
BRAND AND STRATEGY UPDATE
Making Progress in Brand Elevation
With many important events such as the Olympic
Games, UEFA Euro 2024 and CONMEBOL Copa
America, 2024 is undoubtedly a year of sports.
PUMA took this as an opportunity to launch our
biggest-ever brand campaign to elevate the
brand, one of the cornerstones of our strategy
together with increasing product excellence and
improving our distribution quality.
The campaign “FOREVER. FASTER. - See The
Game Like We Do” conveys the brand’s unique
connection with speed and is communicated across
the entire media mix, such as Social Media, TV, PR,
Out Of Home Media and Points of Sale worldwide.
Following the launch in April, from which we
received very positive feedback, PUMA followed
up with additional chapters of the campaign fully
dedicated to Euro 2024, Copa America and our
best-in-class athletes at these events such as
Neymar Jr., Xavi Simons, Kai Havertz and Cody
Gakpo.
Great Performances by PUMA Athletes and
Teams
The great performance of our sponsored teams and
athletes underscored our credibility as a sports
brand across the world. At Euro 2024, our players
and teams ensured fantastic visibility throughout
the tournament, with PUMA-Teams Austria and
Switzerland
putting
up
some
fantastic
performances to progress to the knock-out stages.
The success of our club teams also contributed to
our brand visibility, as Manchester City secured
the Premier League title for the fourth consecutive
year, while Borussia Dortmund reached the final
of the Champions League, Europe’s most coveted
competition.
With
French
defender
Theo
Hernández and US midfielder Weston McKenny,
PUMA signed two young players at the top of their
game to become brand ambassadors.
In track and field, PUMA athletes broke three world
records in the first half of 2024, underscoring the
great performance of our spikes. Ukrainian high
jumper Yaroslava Mahuchickh showed her
incredible form ahead of the Olympic Games by
breaking the 37-year-old high jump world record
with a 2.10m jump. Pole vaulter Armand “Mondo”
Duplantis once again soared to new heights,
breaking his own world record for the ninth time by
raising the bar to 6.25m. In March, Devynne
Charlton from the Bahamas set a new 60m hurdles
world record. Our track and field athletes also shone
at the European Athletics Championships in Rome,
winning seven gold, ten silver and seven bronze
medals.
Supported
by
our
award-winning
NITROTM
technology, our road running athletes also went
from strength to strength this year. For the first time
in decades, PUMA athletes reached the podium
at international marathon majors, with Vivian
Cheruiyot coming in third in Paris and Edna Kiplagat
taking third position in Boston.
At the Olympic Games in Paris, PUMA equips 17
federations and more than 350 athletes across a
range of different sports. Most recently, PUMA
joined forces with the Athletic Federation of India as
an Official Kit Partner. PUMA will also outfit seven
federations at the Paralympic Games in Paris.
Throughout this year of sports, PUMA enjoyed great
visibility with the eye-catching “fireglow” colours of
our football boots and track and field spikes worn by
our athletes.
6
To build on our strong portfolio of brand
ambassadors on the entertainment side, we
welcomed Rosé, a member of one of the best-
selling girl groups of all time, South Korean musical
quartet BLACKPINK. With a dedicated fanbase
across the globe, the K-Pop idol will support classic
franchises in PUMA’s Sportstyle category including
the Palermo.
Rebounding in China
PUMA has focused on strengthening its credibility as
a sports brand in China, for example by sponsoring
the Diamond League event in Xiamen and by
being among the top 10 brands at the Wuxi
Marathon, one of the world’s largest running
events. To capture the popularity of basketball in the
country, PUMA took its NBA ambassador Scoot
Henderson on a tour of China.
The announcement of our collaboration with K-Pop
star Rosé also struck a chord with Chinese
consumers, as it generated PUMA’s biggest social
media stir in China over the past years. The Formula
1 Grand Prix in China gave us the opportunity to
showcase the best of the PUMA brand and the
Formula 1 collection in a successful live event on
Chinese e-commerce platform Tmall, which
engaged millions of viewers. PUMA also leveraged
its ambassadors from the world of music and
entertainment to further build up brand momentum
in Sportstyle. In 2024, PUMA signed singer-
songwriter Henry Lau and featured him in a
successful dance campaign which created great
engagement on social media.
Henry Lau also helped PUMA promote locally
designed apparel collections, which incorporated
local fitting and design details and resonated well
with consumers. Our Palermo and Speedcat
sneakers became bestselling franchises, with the
Speedcat immediately selling out at its initial launch.
These and other measures resulted in PUMA
continuing to build up momentum to rebound
in China despite the difficult market environment.
This was underscored by the results of the recent
6/18 shopping holiday, where PUMA clearly
exceeded last year’s results.
Winning in the USA
As official partners of CONMEBOL, the Copa
America tournament in the US offered a great
opportunity to position PUMA as a performance
brand in the country and enjoy great visibility. We
harnessed the appeal of our football brand
ambassadors Neymar Jr. and Christian Pulisic,
who hosted events ahead of the tournament to
create excitement.
In road running, our NITROTM technology propelled
Fiona O’Keeffe and Dakotah Lindwurm to first and
third at the US Olympic Marathon Trials,
underscoring our successful return to performance
running. Our lightweight NITROFOAM™, which
offers exceptional rebound, also features in our
basketball style All-Pro NITRO™, which became
the official shoe of leading amateur basketball circuit
NXTPro Hoops. PUMA used the cultural appeal of
motorsports to launch an exclusive collection with
Ferrari for the Miami Grand Prix, which sold out
immediately.
We drove brand heat through our strong
partnerships with ambassadors from music and
entertainment, especially PUMA’s power couple
Rihanna and A$AP Rocky. Rihanna continues to
make waves with the back-to-school editions of her
sneakers Creeper and Avanti while A$AP Rocky
teamed up with PUMA to present the Inhale
sneaker, an immediate sell-out success. PUMA
doubled down on its culture-first approach to
basketball by signing trailblazing footwear designer
Salehe Bembury, to reimagine the signature shoe
category in basketball.
In terms of organisation, we welcomed Tara McRae
as Senior Vice President Marketing and Brand
Strategy North America. She will lead all elements of
the North American Marketing organisation to drive
profitable growth and build brand equity. Tara had
already worked at PUMA previously but spent the
past four years as the Chief Marketing Officer &
Digital Officer at Clark’s.
To be closer to our most important entertainment
and music ambassadors, we announced that we
would open a creative space in Los Angeles that will
design campaigns and products for the US market.
To support future growth in the US market from an
operational point of view, PUMA opened a new
distribution centre in Arizona.
7
Ongoing Momentum in Performance
The success of our athletes highlights the
performance of our products and our design and
development teams introduced exciting new
innovations to the market in the first half of 2024.
In football, the seventh generation of the FUTURE
boot empowers our athletes, such as Neymar Jr., Kai
Havertz and Julia Grosso to experience a new level
of freedom of movement. PUMA also unveiled the
sixth edition of its speed boot ULTRA with a new
high-performance outsole design, which generated
great sell through.
The gripping performances of PUMA-Teams Austria
and Switzerland led to a sell-out success of the
jerseys, while the fan shirt campaign with German
comparison platform Check24 generated fantastic
visibility in the summer of sports.
In Running, the third iteration of PUMA’s award-
winning running shoe Deviate NITROTM is
engineered with even more NITROFOAM™ to deliver
supreme cushioning and responsiveness. Our
innovations are also recognised by running experts
around the world, as PUMA’s ultimate race-day
running shoe FAST-R2 was awarded the prestigious
Spanish CORREDOR award for the best new shoe of
the year.
Our running models will feature prominently in our
new global partnership with HYROX, the world
series of fitness racing. As part of the agreement,
PUMA will develop a full range of innovative HYROX
apparel and bespoke footwear models.
In Baskeball, PUMA used the great momentum of
the signature basketball shoes with NBA-star
LaMelo Ball, to expand into a signature lifestyle
series with him. The LaFrancé sneaker gets its
inspiration and name from LaMelo’s official lifestyle
brand specialising in designer streetwear. PUMA
introduced the latest signature shoe with WNBA
star Breanna Stewart, the Stewie 3, which apart
from its striking design incorporates the latest of
PUMA’s performance technology.
In Golf, Cobra launched a new driver series called
DARKSPEED. It was designed by aerospace
engineers and is built for extraordinary speed and
distance.
Building Up Traction with Sportstyle Newness
PUMA presented significant product newness in its
Sportstyle offering. Maximising the current terrace
and skate trends, we launched new versions of our
successful Palermo and Suede XL sneakers, which
are continuing to resonate well with our consumers.
The classic running style Easy Rider, with its
sought-after T-toe style, was also brought back for
a new generation, with great feedback from our
accounts and customers. To raise awareness for
PUMA’s other Classics franchises, we launched the
communications platform “Rewrite the Classics”.
PUMA also helped create the next trends, as we
showed with the successful introduction of our low-
profile styles Mostro and Speedcat. We believe
that given our amazing archive of low-profile
sneakers, we can own and lead this emerging trend.
By taking PUMA’s new styles to the catwalk and
collaborating with A$AP Rocky, renowned fashion
designer Kid Super and others for Paris Fashion
Week, PUMA secured in-depth coverage from the
most prestigious fashion magazines in the world.
Sought-after collaborations with British rapper
Skepta, who introduced the Skope Forever sneaker
and the football-inspired “Más Tiempo” collection,
and a collection with best-selling anime series One
Piece, were a sell-out success.
Making Strong Progress in Sustainability
In the first half of 2024, PUMA achieved significant
milestones in its sustainability journey. We scaled up
our RE:FIBRE technology, which transforms textile
waste into new materials, and made millions of our
replica shirts for 35 clubs and all teams at Euro 2024
with this recycled material.
In footwear, we introduced a commercial version of
our RE:SUEDE for sale, following a successful two-
year
composting
experiment.
This
project
demonstrated that a special version of our classic
Suede sneaker can be turned into compost under
certain industrial conditions.
8
We are encouraged that these initiatives and others,
which are part of PUMA’s FOREVER. BETTER.
sustainability strategy, were recognised, when
TIME Magazine listed PUMA on the “World’s Most
Sustainable Companies” ranking as the only
company in our industry.
Organisational Changes
In May, Harsh Saini and Roland Krüger were
elected as independent members of the PUMA’s
Supervisory Board for a period of three years.
Harsh Saini is a sustainability expert and has worked
for brands such as the Body Shop, Nike and the Fung
Group wheras Roland Krüger is an expert in the field
of retail management, marketing, and digitalisation.
He currently serves as a member of the Board of
Directors of Dyson Holdings.
9
Sales and Earnings Development
SECOND QUARTER 2024
Sales
Sales grew by 2.1% (ca) to € 2,117.3 million, while
currencies continued to be a headwind, negatively
impacting sales in euro terms by approximately € 50
million in Q2 2024 (-0.2% reported).
Sales in the Americas region increased by 9.0% (ca)
to € 887.5 million, with both the U.S. and LATAM
contributing to the growth and showing a sequential
improvement. The Asia/Pacific region recorded sales
growth of 1.9% (ca) to € 411.9 million, driven by
continued growth in Greater China and sequential
improvement in the rest of APAC. In the EMEA
region, sales decreased by 4.3% (ca) to € 817.9
million due to a decline in EEMEA from a strong prior
year quarter (EEMEA grew +111% ca in Q2 2023),
while Europe returned to growth.
PUMA's Wholesale business declined by 3.3% (ca)
to € 1,529.6 million, due to the decline in EEMEA. In
all other regions, the wholesale business improved
quarter-on-quarter, driven by continued good sell-
through and improved inventory levels in the trade.
Our Direct-to-Consumer (DTC) business grew by
19.5% (ca) to € 587.7 million, supported by
continued brand momentum and scaled back
promotions. Sales in owned & operated retail stores
increased 16.5% (ca) and e-commerce increased
of 27.8% (Q2 2023: 24.3%), in line with
expectations.
Sales in Footwear were flat (ca) at € 1,097.0 million
on the back of a strong prior year quarter (Q2 2023:
+18.2% ca) with all Performance categories as well
as Sportstyle Core performing very well. Sales in
Apparel grew by 9.2% (ca) to € 705.6 million, while
sales in Accessories declined by 4.7% (ca) to € 314.8
million.
Gross Profit Margin
The gross profit margin improved by 200 basis
points to 46.8% (Q2 2023: 44.8%). Significant
headwinds from currencies were more than offset by
a favourable product and distribution channel mix as
well as tailwinds from sourcing and freight.
Operating Expenses
Operating expenses (OPEX) increased by 4.3% to
€ 879.3 million (Q2 2023: € 843.4 million). The
increase was primarily due to the continued growth
of our DTC business and ramp-up costs of
warehouse and digital infrastructure projects while
all non-demand creating costs remained under
strong
control.
In
addition,
currency-related
headwinds weighed on the OPEX ratio, which
increased by 180 basis points to 41.5% (Q2 2023:
39.8%).
Operating Result (EBIT)
The operating result (EBIT) increased by 1.6% to
€ 117.2 million (Q2 2023: € 115.3 million), despite
negative currency effects on sales, gross profit
margin and OPEX ratio. Consequently, the EBIT
margin improved by 10 basis points to 5.5% (Q2
2023: 5.4%).
Financial Result
The financial result decreased to € -42.6 million (Q2
2023: € -23.0 million) due to higher currency related
losses and a lower interest result.
Net Income and Earnings per Share
Consequently, net income decreased by 23.8% to
€ 41.9 million (Q2 2023: € 55.0 million) and earnings
per share amounted to € 0.28 (Q2 2023: € 0.37).
The development of the operating result and net
income is fully in line with our expectations that the
second half of the year, particularly in the fourth
quarter, will be stronger than the first half, and that
net income will improve in line with the operating
result outlook for FY 2024.
10
Sales by regions and product divisions
€ million
2024
2023
Euro
currency
adjusted
2024
2023
Euro
currency
adjusted
Breakdown by regions
EMEA
817.9
846.0
-3.3%
-4.3%
1,673.7
1,729.7
-3.2%
-2.2%
Americas
887.5
861.5
3.0%
9.0%
1,677.5
1,689.4
-0.7%
5.1%
Asia/Pacific
411.9
413.3
-0.3%
1.9%
868.5
889.2
-2.3%
1.2%
Total
2,117.3
2,120.7
-0.2%
2.1%
4,219.6
4,308.3
-2.1%
1.3%
Breakdown by product divisions
Footwear
1,097.0
1,126.0
-2.6%
0.0%
2,278.4
2,336.4
-2.5%
1.6%
Apparel
705.6
663.3
6.4%
9.2%
1,313.7
1,311.0
0.2%
3.5%
Accessories
314.8
331.3
-5.0%
-4.7%
627.5
660.9
-5.1%
-4.0%
Total
2,117.3
2,120.7
-0.2%
2.1%
4,219.6
4,308.3
-2.1%
1.3%
growth rates
Second Quarter
First Half-Year
Q2
growth rates
1-6
11
FIRST HALF-YEAR 2024
Sales
Sales increased by 1.3% (ca) to € 4,219.6 million.
Currencies were a major headwind, negatively
impacting sales in euro terms by approximately
€ 150 million in H1 2024 (-2.1% reported).
The Americas region led the growth with a sales
increase of 5.1% (ca) to € 1,677.5 million, followed
by the Asia/Pacific region with a sales increase of
1.2% (ca) to € 868.5 million, while sales in the EMEA
region declined by 2.2% (ca) to € 1,673.7 million.
PUMA’s Wholesale business declined by 3.1% (ca)
to € 3,137.7 million as a result of disciplined sell-in
and focus on good sell-through in preparation for a
stronger sell-in in H2 2024. Our Direct-to-Consumer
(DTC) business increased by 16.7% (ca) to
€ 1,081.9 million. Sales in owned & operated retail
stores increased 16.0% (ca) and e-commerce
increased 18.1% (ca). This resulted in an increased
DTC share of 25.6% (H1 2023: 22.8%).
Among product divisions, sales in Footwear
increased by 1.6% (ca) to € 2,278.4 million and
Apparel grew by 3.5% (ca) to € 1,313.7 million.
Accessories decreased by 4.0% (ca) to € 627.5
million.
Gross Profit Margin
The gross profit margin increased by 150 basis
points to 47.2% (H1 2023: 45.7%). Major
headwinds from currencies were more than offset by
a favourable product and distribution channel mix as
well as tailwinds from sourcing and freight.
Operating Expenses
Operating expenses (OPEX) increased by 1.9% to
€ 1,724.6 million (H1 2023: € 1,691.7 million). The
continued growth of our DTC business and ramp-up
costs for infrastructure projects were the main
drivers of this increase. As a result, the OPEX ratio
was up 160 basis points to 40.9% (H1 2023:
39.3%), also impacted by currency headwinds.
Result before Interest, Taxes, Depreciation
and Amortisation (EBITDA)
The result before interest, taxes, depreciation and
amortisation (EBITDA) decreased to € 445.8 million
in the first half of 2024 (last year: € 455.6 million).
Operating Result (EBIT)
The operating result (EBIT) decreased by 5.1% to
€ 276.2 million (H1 2023: € 290.9 million), mainly
due to negative currency effects on sales, the gross
profit margin and the OPEX ratio, which resulted in
an EBIT margin of 6.5% (H1 2023: 6.8%).
Financial Result
The financial result decreased to € -69.4 million (H1
2023: € -30.8 million) due to a lower interest result
and higher currency related losses.
Net Income and Earnings per Share
Consequently, net income decreased by 25.0% to
€ 129.3 million (H1 2023: € 172.3 million) and
earnings per share amounted to € 0.86 (H1 2023:
€ 1.15).
The development of the operating result and net
income is fully in line with our expectations that the
second half of the year, particularly in the fourth
quarter, will be stronger than the first half, and that
net income will improve in line with the operating
result outlook for FY 2024.
12
Net Assets and Financial Position
Working Capital
The working capital decreased by 2.9% to € 1,643.7
million (30 June 2023: € 1,693.0 million).
Inventories decreased by 8.6% to € 1,961.1 million
(30 June 2023: € 2,145.9 million). The quarter-on-
quarter increase mainly reflects the stronger order
book for the second half of the year. The Group's
total inventory remains at a healthy level, while
quality has further improved. Trade receivables
increased by 3.4% to € 1,394.7 million (30 June
2023: € 1,348.4 million). On the liabilities side, trade
payables increased by 13.1% to € 1,647.9 million
(30 June 2023: € 1,457.3 million).
Cashflow and Liquidity Situation
The free cash flow was at € -204.4 million in the first
half of 2024 (H1 2023: € -341.4 million). As of
30 June 2024, PUMA had cash and cash equivalents
of € 271.8 million (30 June 2023: € 307.9 million).
In addition, the PUMA Group had available credit
lines totalling € 1,411.7 million as of 30 June 2024
(30 June 2023: € 1,592.5 million). Unutilised credit
lines amounted to € 595.4 million as of 30 June 2024
(30 June 2023: € 846.0 million).
13
Outlook 2024
Global Economy
According to the summer forecast published by the
Kiel Institute for the World Economy (ifw Kiel) on 13
June 2024, the moderate global economic expansion
is likely to continue this year. The experts at ifw Kiel
expect an increase in global production of around
3.2% for 2024 as a whole. There are risks with
regard to a longer than previously expected
restrictive monetary policy. Further risks for the
global economy are primarily of a geopolitical nature
and result not least from the uncertainties
surrounding the US presidential election.
Investments
Investments in fixed assets of around € 300 million
are planned for 2024. The majority of these
investments will be in infrastructure in order to
create the operating conditions required for the
planned long-term growth. The investments mainly
concern own distribution and logistics centers,
investments in the expansion and modernisation of
the company's own retail stores and investments in
IT infrastructure.
As in previous years, PUMA will continue to focus on
managing
short-term
challenges
without
compromising the brand's medium- and long-term
momentum. Our sales growth and market share
gains will take priority over short-term profitability.
The very positive feedback from our retail partners
and consumers on our 2024/2025 product line-up
and go-to-market strategies gives us confidence for
the medium and long term success and continued
growth of PUMA
Outlook 2024
The first half of the year was characterised by a
volatile environment with persistent currency
headwinds, stressed supply chains and muted
consumer sentiment globally. In this challenging
environment, PUMA continued to make progress on
its strategic initiatives of brand elevation, product
excellence and distribution quality with special focus
on the U.S. and China, and focused on strong sell-
through and the best possible service to its retail
partners, brand ambassadors and consumers.
Based on the results of the first half year and
supported by building brand momentum as well as
by our strong orderbook for the second half of the
year, PUMA reiterates its outlook for the financial
year 2024 of mid-single-digit currency-adjusted
sales growth. Taking into account the external
factors of higher freight costs, changing duties and
continued muted consumer sentiment, especially in
China, we narrow our outlook for the operating
result (EBIT) to a range of € 620 million to € 670
million. We expect net income to change in 2024 in
line with the operating result.
.
14
Condensed Interim Consolidated Financial Statements (IFRS)
June 30,'24
June 30,'23
Devi-
Dec. 31,'23
€ million
€ million
ation
€ million
ASSETS
Cash and cash equivalents
271.8
307.9
-11.7%
552.9
Inventories *
1,961.1
2,145.9
-8.6%
1,804.4
Trade receivables *
1,394.7
1,348.4
3.4%
1,118.4
Other current assets *
493.8
374.3
31.9%
385.6
Other current assets
101.3
77.2
31.3%
69.8
Current assets
4,222.7
4,253.6
-0.7%
3,931.1
Deferred tax assets
282.8
327.6
-13.7%
296.1
Right-of-use assets
1,069.2
1,063.2
0.6%
1,087.7
Other non-current assets
1,391.6
1,255.3
10.9%
1,325.6
Non-current assets
2,743.7
2,646.1
3.7%
2,709.3
Total Assets
6,966.3
6,899.7
1.0%
6,640.4
LIABILITIES AND EQUITY
Current borrowings
466.6
360.6
29.4%
145.9
Trade payables *
1,647.9
1,457.3
13.1%
1,499.8
Other current liabilities *
558.0
718.3
-22.3%
631.3
Current lease liabilities
213.0
197.1
8.1%
212.4
Other current liabilities
15.8
73.5
-78.4%
47.7
Current liabilities
2,901.3
2,806.7
3.4%
2,537.2
Non-current borrowings
357.8
427.6
-16.3%
426.1
Deferred tax liabilities
18.4
51.5
-64.3%
12.4
Pension provisions
24.0
20.1
19.2%
22.5
Non-current lease liabilities
982.2
997.3
-1.5%
1,020.0
Other non-current liabilities
29.0
34.4
-15.8%
40.0
Non-current liabilities
1,411.3
1,530.8
-7.8%
1,520.9
Equity
2,653.7
2,562.2
3.6%
2,582.3
Total Liabilities and Equity
6,966.3
6,899.7
1.0%
6,640.4
* included in working capital
Balance Sheet
15
Q2/2024
Q2/2023
Devi-
1-6/2024
1-6/2023
Devi-
€ million
€ million
ation
€ million
€ million
ation
Sales
2,117.3
2,120.7
-0.2%
4,219.6
4,308.3
-2.1%
Cost of sales
-1,126.7
-1,170.9
-3.8%
-2,230.0
-2,341.6
-4.8%
Gross profit
990.6
949.8
4.3%
1,989.6
1,966.8
1.2%
- in % of sales
46.8%
44.8%
+2.0 pp
47.2%
45.7%
+1.5 pp
Royalty and commission income
5.9
8.9
-33.4%
11.2
15.9
-29.5%
Other operating income and expenses
-879.3
-843.4
4.3%
-1,724.6
-1,691.7
1.9%
Operating result (EBIT)
117.2
115.3
1.6%
276.2
290.9
-5.1%
- in % of sales
5.5%
5.4%
+0.1 pp
6.5%
6.8%
-0.2 pp
Financial result
-42.6
-23.0
85.7%
-69.4
-30.8
>100%
Earnings before taxes (EBT)
74.6
92.4
-19.3%
206.7
260.1
-20.5%
- in % of sales
3.5%
4.4%
-0.8 pp
4.9%
6.0%
-1.1 pp
Taxes on income
-18.4
-23.0
-20.3%
-51.4
-65.0
-20.9%
- Tax rate
24.6%
24.9%
-0.3 pp
24.9%
25.0%
-0.1 pp
Net income attributable to non-controlling interests
-14.3
-14.3
-0.1%
-26.1
-22.8
14.2%
Net income
41.9
55.0
-23.8%
129.3
172.3
-25.0%
- in % of sales
2.0%
2.6%
-0.6 pp
3.1%
4.0%
-0.9 pp
Earnings per share (€)
0.28
0.37
-23.8%
0.86
1.15
-25.0%
Earnings per share (€) - diluted
0.28
0.37
-23.8%
0.86
1.15
-25.0%
Weighted average shares outstanding (million shares)
149.79
149.80
0.0%
Weighted average shares outstanding - diluted (million shares)
149.83
149.81
0.0%
Second Quarter
First Half-Year
Income Statement
16
Statement of Comprehensive Income
1-6/2024
1-6/2023
€ million
€ million
Consolidated net income of the year before attribution
155.3
195.1
Currency translation differences
57.1
-15.4
Net gain/ loss on cash flow hedges, net after tax
42.2
-15.9
Net gain/ loss from reserve for hedging costs - options, net after taxes
3.9
Net gain/ loss from reserve for hedging costs - forward transactions, net after taxes
-10.9
Items expected to be reclassified to the income statement in the future
92.3
-31.3
Remeasurements of the net defined benefit liability, net after tax
-0.3
1.6
Neutral effects financial assets through other comprehensive income (FVTOCI), net after tax
-0.6
3.6
Items not expected to be reclassified to the income statement in the future
-1.0
5.2
Other comprehensive income
91.3
-26.1
Comprehensive income
246.6
169.1
attributable to:
Non-controlling interests
27.0
21.6
Shareholders of PUMA SE
219.7
147.5
17
1-6/2024
1-6/2023
€ million
€ million
Earnings before taxes (EBT)
206.7
260.1
Financial result and non-cash effected expenses and income
181.4
231.3
Gross cash flow
388.1
491.4
Change in current assets, net
-420.2
-603.9
Payments for taxes on income
-67.4
-96.6
Net cash used in operating activities
-99.5
-209.0
Payments for investing in fixed assets
-125.4
-158.0
Other investing and divestment activities incl. interest received
20.5
25.6
Net cash used in investing activities
-104.9
-132.4
Free cash flow
-204.4
-341.4
Free cash flow (before acquisitions)
-204.4
-341.4
Dividends paid to shareholders of PUMA SE
-122.8
-122.8
Dividends paid to non-controlling interests
-27.0
-23.4
Proceeds from borrowings
374.0
460.9
Cash repayments of borrowings
-125.0
0.0
Repayments of lease liabilities
-110.7
-98.8
Repurchase of treasury shares
-26.5
0.0
Payments of interest
-63.8
-38.7
Net cash used in/ from financing activities
-101.9
177.3
Exchange rate-related changes in cash and cash equivalents
25.1
8.9
Changes in cash and cash equivalents
-281.1
-155.2
Cash and cash equivalents at the beginning of the financial year
552.9
463.1
Cash and cash equivalents at the end of the reporting period
271.8
307.9
Cash Flow Statement
18
Statement of
Subscribed
Capital
Treasury
Share-
Non-
Total
Changes in Equity
capital
reserve
Revenue
Difference
Cash flow
Reserve for
Reserve for
stock
holders'
controlling
Equity
reserves
from
hedges
hedging
hedging costs
equity
interests
incl. retained
currency
costs
- forward
€ million
earnings
conversion
- options
transactions
1 January 2023
150.8
90.8
2,496.2
-256.8
14.2
0.0
0.0
-23.5
2,471.7
67.1
2,538.8
Consolidated net income of the year
0.0
0.0
172.3
0.0
0.0
0.0
172.3
22.8
195.1
Other comprehensive income
0.0
0.0
5.2
-14.2
-15.9
0.0
-24.9
-1.2
-26.1
Comprehensive income
0.0
0.0
177.5
-14.2
-15.9
0.0
147.5
21.6
169.1
Dividends paid to shareholders of
PUMA SE / non-controlling interests
-122.8
-122.8
-23.4
-146.2
Share-based payment and Utilization
/Issue of treasury stock
0.3
0.2
0.4
0.4
30 June 2023
150.8
91.0
2,551.0
-270.9
-1.7
0.0
0.0
-23.3
2,496.8
65.3
2,562.2
31 December 2023
150.8
93.8
2,677.0
-342.7
-3.9
0.0
0.0
-21.6
2,553.4
28.9
2,582.3
Effect of transition to IFRS 9 (hedge
accounting), net after tax
-4.9
-1.3
6.2
0.0
0.0
1 January 2024
150.8
93.8
2,672.1
-342.7
-3.9
-1.3
6.2
-21.6
2,553.4
28.9
2,582.3
Consolidated net income of the year
0.0
0.0
129.3
0.0
0.0
0.0
129.3
26.1
155.3
Other comprehensive income
0.0
0.0
-1.0
56.1
42.2
3.9
-10.9
0.0
90.4
0.9
91.3
Comprehensive income
0.0
0.0
128.3
56.1
42.2
3.9
-10.9
0.0
219.7
27.0
246.6
Gain and loss from hedging, that has
been reclassified to inventories
1.2
1.2
1.2
Dividends paid to shareholders of
PUMA SE / non-controlling interests
-122.8
-122.8
-27.0
-149.8
Share-based payment and Utilization
/Issue of treasury stock
2.9
1.9
4.8
4.8
Repurchase of treasury stock
-31.3
-31.3
-31.3
Changes in the scope of consolidation
-0.1
-0.1
-0.1
30 June 2024
150.8
96.7
2,677.7
-286.7
39.5
2.6
-4.7
-51.0
2,624.9
28.9
2,653.7
Other reserves
19
Operating Segments 1-6/2024
Regions
Sales
EBIT
Investments
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Europe
1,002.5
1,013.0
131.5
129.5
16.2
9.7
EEMEA*
791.0
868.1
166.2
207.7
11.5
12.6
North America
1,024.2
1,037.4
117.5
124.3
28.4
47.1
Latin America
628.2
625.9
122.5
142.7
30.3
44.8
Greater China
314.5
305.1
61.2
52.0
3.5
2.6
Asia/ Pacific (without Greater China)*
201.8
215.6
27.9
32.0
2.3
2.7
stichd
244.7
237.1
34.4
46.0
10.8
6.0
Operating segments in total
4,206.9
4,302.2
661.2
734.1
103.0
125.5
Depreciation and Amortisation
Inventories
Trade Receivables
(3rd party)
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Europe
33.5
30.4
543.8
613.6
275.9
284.1
EEMEA*
31.4
30.8
426.2
410.6
346.6
325.9
North America
42.1
42.0
438.8
611.9
275.9
279.5
Latin America
24.5
15.6
379.5
364.4
277.6
272.2
Greater China
14.8
15.4
112.1
116.2
54.1
40.7
Asia/ Pacific (without Greater China)*
11.0
11.5
64.8
82.2
65.9
68.0
stichd
7.0
5.1
127.9
102.8
95.1
73.4
Operating segments in total
164.2
150.7
2,093.3
2,301.6
1,391.2
1,343.7
Non-current Assets
1-6/2024
1-6/2023
€ million
€ million
Europe
494.9
470.8
EEMEA*
217.3
198.0
North America
776.6
769.3
Latin America
264.0
179.1
Greater China
87.6
84.1
Asia/ Pacific (without Greater China)*
83.7
97.7
stichd
230.3
210.6
Operating segments in total
2,154.4
2,009.7
* Prior year amounts were adjusted due to changes of the structure of the regions EEMEA and Asia/ Pacific (without Greater China)
20
Product
Sales
Gross Profit Margin
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
Footwear
2,278.4
2,336.4
46.2%
44.2%
Apparel
1,313.7
1,311.0
48.2%
47.7%
Accessories
627.5
660.9
48.5%
46.6%
Total
4,219.6
4,308.3
47.2%
45.7%
Reconciliations
Sales
1-6/2024
1-6/2023
€ million
€ million
Operating segments in total
4,206.9
4,302.2
Central Units
12.7
6.2
Total
4,219.6
4,308.3
EBIT
1-6/2024
1-6/2023
€ million
€ million
Operating segments in total
661.2
734.1
Central Units
-146.9
-193.3
Central marketing expenses
-238.0
-249.9
Consolidation
0.0
0.0
EBIT
276.2
290.9
Financial Result
-69.4
-30.8
EBT
206.7
260.1
Investments
Depreciation and Amortisation
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
Operating segments in total
103.0
125.5
164.2
150.7
Central Units
13.2
22.4
19.9
19.3
Consolidation
0.0
0.0
0.0
0.0
Total
116.1
147.9
184.2
170.1
Inventories
Trade Receivables
(3rd party)
Non-current Assets
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Operating segments in total
2,093.3
2,301.6
1,391.2
1,343.7
2,154.4
2,009.7
Not allocated to the operating segments
-132.2
-155.7
3.6
4.7
200.8
217.8
Total
1,961.1
2,145.9
1,394.7
1,348.4
2,355.2
2,227.5
21
Explanatory Notes to the Condensed Interim Consolidated Financial Statements (IFRS) as of 30 June 2024
GENERAL REMARKS
Under the “PUMA” brand name, PUMA SE and its
subsidiaries (the “PUMA group”) are engaged in the
development and sales of a broad range of sport and
sportlifestyle products including footwear, apparel
and accessories. The company’s registered head
office is in Herzogenaurach, Federal Republic of
Germany; its responsible court of registration is at
Fürth (Bavaria).
ACCOUNTING STANDARDS
The unaudited financial report of PUMA SE and its
subsidiaries (which together form the PUMA group)
was prepared according to IAS 34 “Interim Financial
Reporting” and should be read in connection with
the consolidated financial statements as of 31
December 2023. The information contained in the
consolidated financial statements as of 31 December
2023, apply to the financial reports for 2024, unless
changes have been explicitly referred to.
In preparing the half-year financial report, the
accounting policies applied and explained for the
consolidated financial statements as of 31 December
2023 were applied consistently with the following
exception.
PUMA is applying the provisions of IFRS 9 for phase
3 hedge accounting for the first time as of 1 January
2024. Previously, the option of continuing to apply
IAS 39 for hedge accounting was exercised. For
reasons of materiality, PUMA does not resatate
comparative information for previous periods.
Consequently, an adjustment was made to the
opening balance sheet as of 1 January 2024. For
existing cash flow hedge relationships, the hedging
cost approach was applied retrospectively on a
mandatory basis for options held as at the opening
date and voluntarily for the components of forward
exchange contracts excluded from the designation.
This resulted in a correction of the opening balance
sheet in a high single-digit million euro amount,
whereby the amount was withdrawn from retained
earnings and allocated to other comprehensive
income.
As under IAS 39, the PUMA Group now also
generally designates the spot component of
currency forwards and the intrinsic value of currency
and interest rate options in a hedging relationship
under IFRS 9. The effective cumulative changes in
fair value resulting from the spot component or the
intrinsic value are initially recognised directly in
equity in the cash flow hedge reserve in other
comprehensive income.
When accounting for currency hedges as cash flow
hedges, the fair values of the option contracts as
well as the forward components and the currency
basis spreads of the forward exchange contracts are
excluded from designation in a hedging relationship.
For these components excluded from designation,
the hedging cost approach is applied mandatorily for
options and voluntarily for currency forwards.
When accounting for interest rate hedges as cash
flow hedges, the fair values of the option
transactions are excluded from designation in a
hedging relationship. The hedging cost approach is
mandatory for these components excluded from
designation.
The effective cumulative changes in market value of
the non-designated components are recognised as
hedging costs in other comprehensive income as a
separate item.
In general, the changes in market value of the
components designated in hedging relationships for
foreign currency hedges accumulated in other
comprehensive
income
are
included
in
the
acquisition costs when hedged non-financial assets
are initially recognised or, in other cases, are
reclassified to sales in the same period as the
22
hedged item affects profit or loss. The adjustment
of non-financial assets affects profit or loss in the
same way and in the same periods as the affected
non-financial items affect profit or loss. A
corresponding disclosure is made both in the
statement of comprehensive income and in the
statement of changes in equity. In the case of
interest rate hedges, the changes in market value
accumulated in accumulated other equity are
reclassified to interest expense. The components
excluded from the designation are reclassified from
other comprehensive income to the financial result.
In the unusual case for the PUMA Group that
derivative financial instruments are not designated
as hedging instruments, they continue to be
classified and measured at fair value through profit
or loss.
This financial report is partly based on assumptions
and estimates which have an impact on the amounts
and on the breakdown of the reported assets and
liabilities as well as of the revenues and expenses.
The actual values may, in some exceptional cases,
differ from these assumptions and estimates at a
later date. The corresponding changes if and when
they occur will be considered as soon as the findings
are revised. The main uncertainties of estimates and
discretionary decisions are described in the
consolidated financial statements as of 31 December
2023.
In this regard, in line with our sales strategy, the
assumptions relating to the allocation of planned
cash inflows in the measurement of right-of-use
assets for retail stores were adjusted in the first half
of 2024 based on better experience. In the first half
of 2024, this led to the reversal of an impairment
loss recognised in the past and last adjusted as of
31 December 2023 in a very low 2-digit million euro
amount. The reversal was recognised in other
operating income and expenses.
SEASONAL VARIANCE
The Group's sales are seasonal and result in varying
sales and resulting profits throughout the year. Sales
and resulting profits tend to be highest in the first
and third quarters of the financial year and inventory
levels tend to be lowest. This is respectively due to
the start of the spring/summer and autumn/winter
collections.
MANAGEMENT SYSTEM
Changes in sales are also influenced by currency
exchange effects. This is why we also state any
changes in sales in euros, the reporting currency,
adjusted for currency exchange effects in order to
provide information that is relevant to the decision-
making process when assessing the revenue
position. Currency-adjusted sales are used for
comparison purposes and are based on the values
that would arise if the foreign currencies included in
the consolidated financial statements were not
converted at the average rates for the previous year,
but were instead translated at the corresponding
average rates for the current year. In the case of
countries
that
are
in
a
hyperinflationary
environment, the previous year's amounts are not
converted at the reporting date rates of the previous
year, but at those of the current reporting year. As
a result, currency-adjusted figures are not to be
regarded as a substitute or as superior financial
indicators, but should instead always be regarded as
additional information.
23
We use the indicator working capital in order to
assess the financial position. Working capital is
essentially the difference between current assets -
including in particular inventories and trade
receivables - and current liabilities. Cash and cash
equivalents, lease receivables, the positive and
negative market values of derivative financial
instruments and current finance and lease liabilities
are not included in working capital.
Net current assets include working capital line
items plus current assets and liabilities, which are
not part of the working capital calculation. Current
lease liabilities are not part of the net current assets.
NOTES TO THE INCOME STATEMENT
The breakdown of the Group's revenues by
distribution channel is as follows:
2024
€ million
2023
€ million
Wholesale
3,137.7
3,327.4
Direct to Consumer-business (Retail)
1,081.9
980.9
Total
4,219.6
4,308.3
EARNINGS PER SHARE
Earnings per share are calculated in accordance with
IAS 33 by dividing the result for the reporting period
by the average number of shares outstanding. The
average number of shares outstanding also includes
vested shares not yet issued. Shares held in treasury
stock reduce both the number of shares outstanding
and the diluted number of shares. Outstanding stock
options from the management incentive programme
can generally lead to a dilution of earnings per
share.
2024
2023
Earnings per share
€ 0.86
€ 1.15
Diluted earnings per share
€ 0.86
€ 1.15
EMPLOYEES
The development of the number of employees on
the basis of full-time equivalents (FTE) is as follows:
2024
2023
Number of employees as of 1 January
18,681
18,071
Number of employees as of 30 June
18,420
17,590
Average number of employees
18,292
17,876
DIVIDEND
The Annual General Meeting on 22 May 2024
approved a dividend of € 0.82 per share for the 2023
financial year. The total amount of the distribution is
€ 122.8 million. The dividend was paid out to the
shareholders in the days following the Annual
General Meeting.
SHAREHOLDERS‘ EQUITY
Subscribed Capital
The subscribed capital amounts to € 150,824,640.00
on the balance sheet date in accordance with the
articles
of
association
and
is
divided
into
150,824,640 no-par value shares with voting rights.
This corresponds to a proportionate amount of
€ 1.00 per share.
Treasury Stock
The resolution adopted by the Annual General
Meeting on 7 May 2020 (adjusted on 5 May 2021)
authorised the company to purchase until 6 May
2025 its own shares to a value of up to ten percent
of the share capital.
Based on the aforementioned authorisation, the
Management Board of PUMA SE approved a share
buyback programme on 29 February 2024. The first
tranche provides for the buyback of treasury shares
with a total purchase price of up to € 100 million and
begins in March 2024 for the period until 6 May
2025.
24
By resolution of the Annual General Meeting on 22
May 2024, the existing authorisation was revoked
and the company was again authorised to acquire
treasury shares of up to ten percent of the share
capital until 21 May 2029.
In the period from March 2024 up to and including
30 June 2024, PUMA SE acquired 700,413 shares in
the first tranche at a total price of € 31,291,030.36
(excluding acquisition costs) and an average
purchase price of approximately € 44.68 per share.
This corresponded to 0.46% of the subscribed
capital.
The company may use the repurchased shares for
all purposes of the authorisation granted. However,
PUMA SE intends to cancel the repurchased shares
in the fourth quarter of 2024.
Further information on the repurchase of treasury
shares can be found in the following table.
Repurchase of Treasury Shares in the
First Half of 2024
Month
Number of shares
Total price in €
Average purchase
price per share
in €
Share of
subscribed capital
in €
Share of
subscribed capital
in %
March
105,713
4,310,868.52
40.78
105,713
0.07%
April
88,714
3,706,587.20
41.78
88,714
0.06%
May
85,933
4,120,879.78
47.95
85,933
0.06%
June
420,053
19,152,694.86
45.60
420,053
0.28%
First half of 2024
in total
700,413
31,291,030.36
44.68
700,413
0.46%
25
At the end of the second quarter, the company held
a total of 1,596,001 PUMA shares in treasury, which
corresponds to 1.06% of the subscribed capital.
Development Number of Shares
2024
2023
Number of shares as of
1 January and as of 30 June
150,824,640 150,824,640
Thereof treasury shares
-1,596,001
-1,057,505
Shares outstanding as of
30 June
149,228,639 149,767,135
Weighted average number
of shares, outstanding
149,786,266 149,801,086
Diluted number of weighted
average shares, outstanding
149,829,651
149,814,188
FINANCIAL INSTRUMENTS
The valuation methods of the fair values according
to levels 1 to 3 are unchanged and can be found in
the consolidated financial statements as of 31
December 2023.
Financial instruments that are measured at fair value
in the balance sheet were determined using the
following hierarchy:
Level 1: Use of prices quoted on active markets for
identical assets or liabilities.
Level 2: Use of input factors that do not involve the
quoted prices stated under Level 1, but can be
observed for the asset or liability either directly (i.e.,
as price) or indirectly (i.e., derivation of prices).
Level 3: Use of factors for the valuation of the asset
or liability that are based on non-observable market
data.
The fair value of the investments held for strategic
reasons only refers to equity instruments of the
category “fair value through OCI” (FVOCI) and is
determined on the basis of level 1. The market
values of derivative assets or liabilities were
determined on the basis of level 2.
26
Measurement
Carrying
amount
Fair Value
Carrying
amount
Fair Value
categories
2024
2024
Level 1
Level 2
Level 3
2023
2023
Level 1
Level 2
Level 3
under IFRS 9
€ million
€ million
€ million
€ million
Assets
Cash and cash equivalents
1)AC
271.8
307.9
Trade receivables
AC
1,394.7
1,348.4
Other current financial assets
Derivatives - hedge accounting
n.a.
58.2
58.2
58.2
39.6
39.6
39.6
Derivatives - no hedge accounting
2)FVPL
25.9
25.9
25.9
21.7
21.7
21.7
Lease receivables
n.a.
15.9
4.3
Remaining current financial assets
AC
54.1
26.7
Other non-current financial assets
Derivatives - hedge accounting
n.a.
5.7
5.7
5.7
3.4
3.4
3.4
Investments
3) FVOCI
20.6
20.6
20.6
25.4
25.4
25.4
Lease receivables
n.a.
24.0
13.8
Remaining non-current financial assets
AC
31.0
34.4
Liabilities
Current borrowings
Bank liabilities
AC
396.6
175.6
Promissory note loans
AC
70.0
68.5
68.5
185.0
183.4
183.4
Trade payables
AC
1,647.9
1,457.3
Current lease liabilities
n.a.
213.0
197.1
Other current financial liabilities
Derivatives - hedge accounting
n.a.
10.6
10.6
10.6
45.7
45.7
45.7
Derivatives - no hedge accounting
2)FVPL
5.2
5.2
5.2
27.6
27.6
27.6
Remaining current financial liabilities
AC
28.7
35.1
Non-current borrowings (promissory note loan)
AC
357.8
357.2
357.2
427.6
419.8
419.8
Non-current lease liabilities
n.a.
982.2
997.3
Other non-current financial liabilities
Derivatives - hedge accounting
n.a.
1.3
1.3
1.3
1.5
1.5
1.5
Remaining non-current financial liabilities
AC
2.2
0.2
Total financial assets at amortised cost
1,751.6
1,717.3
Total financial liabilities at amortised cost
2,503.2
2,280.6
Total financial assets at fair value through profit or loss
25.9
21.7
Total financial liabilities at fair value through profit or loss
5.2
27.6
Total financial assets at FVOCI
20.6
25.4
1) AC = at amortised cost
2) FVPL = fair value through PL
3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income
27
SEGMENT REPORTING
Segment reporting is based on geographical areas
of responsibility in accordance with the PUMA
internal reporting structure, with the exception of
stichd. The geographical area of responsibility
corresponds to the business segment. Sales, the
operating
result
(EBIT)
and
other
segment
information are allocated to the corresponding
geographical areas of responsibility according to the
registered office of the respective Group company.
The internal management reporting includes the
following reporting segments: Europe, EEMEA
(Eastern Europe, Middle East, Africa, India, South
East Asia, Australia and New Zealand), North
America, Latin America, Greater China, Rest of
Asia/Pacific (excluding Greater China, South East
Asia, Australia and New Zealand) and stichd. These
are reported as reportable business segments in
accordance with the criteria of IFRS 8.
The reconciliation includes information on assets,
liabilities, expenses and income in connection with
centralised functions that do not meet the definition
of business segments in IFRS 8. Central expenses
and income include in particular central sourcing
(incl. hedging), central treasury, central marketing,
impairment losses on non-current assets and other
global functions of the Company headquarters.
The Company’s main decision-maker is defined as
the entire Management Board of PUMA SE.
With the exception of stichd’s sales of products
amounting to € 30.2 million (last year: € 20.7
million), there are no significant internal sales
between the business segments, which are
therefore not included in the presentation.
The operating result (EBIT) of the business
segments is defined as gross profit less the
attributable other operating expenses plus royalty
and commission income and other operating
income, but not considering the costs of the central
departments and the central marketing expenses.
Since PUMA is only active in one business field, the
sporting goods industry, products are additionally
allocated according to the footwear, apparel and
accessories product divisions in accordance with the
internal reporting structure.
EVENTS AFTER THE BALANCE SHEET DATE
There were no events after the balance sheet date
which may have a material effect on the financial
situation and earnings position as of 30 June 2024.
Responsibility Statement
“To the best of our knowledge, and in accordance
with the applicable reporting principles for interim
financial reporting, the interim consolidated financial
statements give a true and fair view of the assets,
liabilities, financial position and profit or loss of the
group, and the interim management report of the
group includes a fair review of the development and
performance of the business and the position of the
group, together with a description of the principal
opportunities and risks associated with the expected
development of the group for the remaining months
of the financial year.”
Herzogenaurach, 7 August 2024
The Management Board of PUMA SE
28
Management Board
Arne Freundt
(CEO, Chief Executive Officer)
Anne-Laure Descours
(CSO, Chief Sourcing Officer)
Maria Valdes
(CPO, Chief Product Officer)
Hubert Hinterseher
(CFO, Chief Financial Officer)
Supervisory Board
Héloïse Temple-Boyer
(Chair)
Jean-Marc Duplaix
(Deputy Chairman)
Fiona May
Harsh Saini (since 22 May 2024)
Roland Krüger (since 22 May 2024)
Thore Ohlsson (until 22 May 2024)
(Deputy Chairman)
Martin Koeppel
(Employees‘ Representative)
Bernd Illig
(Employees‘ Representative)
29
Financial Calendar FY 2024
27 February 2024
Financial Results FY 2023
8 May 2024
Quarterly Statement Q1 2024
22 May 2024
Annual General Meeting
7 August 2024
Half-Year Financial Report 2024
6 November 2024
Quarterly Statement Q3 2024
The financial releases and other financial information are available on the
Internet at „about.puma.com“.
Published by
PUMA SE
PUMA Way 1
D-91074 Herzogenaurach
Tel.:
+49 (0)9132 81-0
email:
investor-relations@puma.com
Internet:
http://www.puma.com
Notes relating to forward-looking statements:
This document contains statements about the future business development and strategic direction of the Company. The forward-looking statements are based on management's current
expectations 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
combined 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
developments. We therefore assume no liability for the accuracy of these forecasts.
PUMA
PUMA 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
by 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
collaborates 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
more than 120 countries, employs about 21,000 people worldwide and is headquartered in Herzogenaurach/Germany.
For more information, please visit https://about.puma.com.Original LaTeX notation
PLAY
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Annual Report 2023
RIHANNA
TABLE OF CONTENTS
4
5
8
15
30
31
34
35
36
42
48
49
TO OUR SHAREHOLDERS
CEO-Letter
Report by the Supervisory Board
OUR PEOPLE
SUSTAINABILITY
Foreword Anne-Laure Descours, CSO Awards
and Recognitions
PUMA’s FOREVER.BETTER. Sustainability Strategy
Sustainability Organisation and Governance
Structure
Most Material Aspects
Scope of the Report
Due Diligence and Risk Assessment Human
Rights
53
Fair Income
79
Health and Safety
89
Environment
94
Climate
104
Chemicals
133
Water and Air
142
Plastics and the Oceans
153
Circularity
156
Products
165
Biodiversity
177
Environmental Key Performance Data
184
Reporting in accordance with the
EU Taxonomy Regulation
188
,QGH[IRUFRPELQHGQRQ-кQDQFLDORHSRUWDQG
GRI content
198
KPMG Assurance Statement
205
PUMA Annual Report 2023
Table of Contents
2
MONDO DUPLANTIS
COMBINED MANAGEMENT
REPORT OF PUMA SE FOR
THE FINANCIAL YEAR 2023
208
Overview 2023
210
PUMA Group essential information
214
Commercial activities and organisational structure 214
Targets and strategy
215
Product development and design
217
Sourcing
220
Employees
222
Management system
225
,QIRUPDWLRQUHJDUGLQJWKHQRQ-кQDQFLDOUHSRUW
Economic report
228
General economic conditions
228
Sales development
229
Results of operations
233
Development of the segments
237
Dividends
238
1HWDVVHWVDQGкQDQFLDOSRVLWLRQ
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Statement regarding the business development
and the overall situation of the Group
245
Comments on the Financial Statements of
PUMA SE in accordance with the German
Commercial Code (HGB)
247
Information concerning takeovers
251
Corporate governance statement in accordance
with section 289f and 315d HGB
254
Risk and Opportunity Report
255
Outlook report
272
CONSOLIDATED FINANCIAL
STATEMENTS
274
Consolidated Statement of Financial Position
275
Consolidated Income Statement
277
Consolidated Statement of Comprehensive Income 278
279
Consolidated Statement of Cash Flows
Statement of Changes in Equity
281
Notes to the Consolidated Financial Statements
282
Notes to the Consolidated Statement of
Financial Position
302
Notes to the Consolidated Income Statement
351
Additional information
357
Declaration by the Legal Representatives
372
Independent Auditor‘s Report
373
ADDITIONAL INFORMATION
382
The PUMA Share
383
PUMA Year-on-Year Comparison
385
PUMA Group Development
387
Imprint
390
PUMA Annual Report 2023
3
Table of Contents
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TO OUR SHAREHOLDERS
5
CEO-Letter
Report by the Supervisory Board
8
PUMA Annual Report 2023
To our Shareholders
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PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
7
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PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
Ң
REPORT BY THE SUPERVISORY BOARD
DEAR SHAREHOLDERS,
In a transition year for our industry, characterized by a challenging market environment, geopolitical con-
flict, macroeconomic headwinds and currency volatility, the PUMA Group sustained its strong momentum,
gained market shares and delivered a profitability fully in line with its outlook.
$UQHFUHXQGWZKRWRRNRYHUDV&KLHIE[HFXWLYHOIILFHULQODWHҜҚҜҜWRJHWKHUZLWK0DULDVDOGHVDV&KLHI
Product Officer, Anne-Laure Descours as Chief Sourcing Officer and Hubert Hinterseher as Chief Financial
Officer, started to build a foundation for the future growth of the company with the strategic priorities of ele-
vating the brand, increasing product excellence, and improving the distribution quality. Within that strategic
framework, PUMA put a special focus on the important US and China markets. As the Supervisory Board,
we are convinced that these are the right priorities to ensure not only sustainable but also more profitable
JURZWK.TKHSURJUHVVWKDWZDVPDGHLQҜҚҜҝPDGHXVFRQILGHQWWKDWWKH380$0DQDJHPHQWWHDPLVRQWKH
right track. We are particularly pleased to see that the Management Board acts as a team and that this team
spirit not only motivates employees but is also recognized and appreciated by external stakeholders. We are
also proud of the progress PUMA has made on its sustainability journey. Making our supply chains fair and
sustainable has always been a matter close to PUMA's heart and we want to remain one of the leading
brands in the industry. The topic will also have a strong influence on the work of the Supervisory Board in
the future, which is why we are striving for further professionalization in this area.
Another focus of the Supervisory Board's work was resolving the unfavourable YRWLQJUHVXOWVDWWKHҜҚҜҝ$Q-
nual General Meeting and deriving follow-XSPHDVXUHV.FRUҜҚҜҞWKH6XSHUYLVRU\BRDUGVHWLWVHOIWKHJRDO
of further professionalizing its own work and strengthening the diversity concept of the Supervisory Board.
Especially, increasing independence at the Supervisory Board is our top priority going forward. The Supervi-
sory Board decided to actively engage with some of the Company’s largest investors and conduct a Govern-
ance Roadshow for the first time. In these conversations, I received valuable feedback which will shape the
↗ HÉLOÏSE TEMPLE-BOYER
CHAIR OF THE
SUPERVISORY BOARD
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
ң
ZRUNRIWKH6XSHUYLVRU\BRDUGLQҜҚҜҞ.FRUH[DPSOHZHZLOOSURSRVHWRWKH$QQXDO*HQHUDO0HHWLQJLQҜҚҜҞ
that the number of Supervisory Board members will be increased from the current six to seven. After Thore
Ohlsson has handed over the chair of the Audit Committee to Jean-Marc Duplaix and ensured a smooth
WUDQVLWLRQKHZLOOUHVLJQIURP380$ΝV6XSHUYLVRU\BRDUGHIIHFWLYH0D\ҜҜҜҚҜҞWKHGD\RI380$ΝV$QQXDO
General Meeting. Jean-Marc Duplaix is considered independent by the Supervisory Board because his func-
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380$ΝVVKDUHFDSLWDODQG$UW«PLV6.$.6.KROGVҞҜ.ҜRI.HULQJΝVVKDUHFDSLWDODFFRUGLQJWR.HULQJΝVҜҚҜҝ
Annual Financial Report. Until Thore’s resignation becomes effective, he continues to contribute his exten-
sive knowledge and many years of experience as a member of the Audit Committee for the benefit of PUMA
with great commitment. As a consequence, there will be two new vacancies on the Supervisory Board that
need to be filled. To find the right candidates, the Supervisory Board has assigned the search to a leading
global executive search consulting company. The search will focus on profiles with expertise in the areas of
sustainability and retail and will comply with the required independence by investors. With this step, the Su-
pervisory Board aims to strengthen the structure of the Board, both in terms of skills and independence. A
particular effort will be made in the next years to ensure that the chair of the Personnel Committee, who is
in charge of remuneration topics, of the Nominating Committee and of the Audit Committee as well as the
majority of the members of those Committees, are independent.
At the last Annual General Meeting, the majority of our shareholders present voted against the proposed
remuneration report. We have taken these voting results on the remuneration report very seriously and I am
addressing them in the introduction to the remuneration report (see https://about.puma.com/en under In-
vestor Relations/Corporate Governance). Following the feedback that emerged during the engagement with
the investors regarding the remuneration system, we are taking steps to review the remuneration system in
WKHFRXUVHRIWKHҜҚҜҞILQDQFLDO\HDUDQGZLOOSUHVHQWDUHYLVHGUHPXQHUDWLRQV\VWHP WRWKHҜҚҜҟ$QQXDO
General Meeting for approval.
Although the current share price performance is not in line with our and your expectations, I am convinced
that it does neither reflect the actual value of our company nor the good operating performance. The Super-
visory Board and the Management Board anticipate that the current challenging market environment is
temporary and are confident that the long-term prospects of the company based on its strong brand, strong
product, strong partnerships and strong team will lead to a sustainable growth.
The Supervisory Board would like to thank PUMA’s Management Board, Leadership Team and the entire
380$FDPLO\IRUWKHLUGHGLFDWLRQFRPPLWPHQWDQGKDUGZRUNLQҜҚҜҝ.
SUPERVISORY BOARD MEETINGS
The meetings of the Supervisory Board and its committees generally take place in-person with the option of
participation via a video link. Meetings are held exclusively as video conferences in exceptional circum-
VWDQFHV.,QҜҚҜҝWKH6XSHUYLVRU\BRDUGFRQYHQHGWRIRXUUHJXODUPeetings. In these meetings, it advised the
Management Board on the management of the company and continuously supervised its conduct of busi-
ness. It discussed with the Management Board on the Company’s business policies, all relevant aspects of
corporate development and corporate planning, the Company’s economic situation, including its net assets,
financial position and results of operations, the adequacy of capital resources and all key decisions for the
Group. The Management Board informed the Supervisory Board regularly, comprehensively, and in a timely
manner in written and verbal form about the implementation of all decisions and about all major business
transactions. The members of the Management Board took part in meetings of the Supervisory Board and
its committees; the Supervisory Board also met regularly without the Management Board.
FXUWKHUPRUHLQҜҚҜҝRQHFRQVWLWXHQWPHHWLQJRIWKH6XSHUYLVRU\BRDUGWRRNSODFHDIWHUWKHHOHFWLRQRIWKH
new Supervisory Board by the Annual General Meeting. Several matters were decided via circular resolu-
tions using electronic means of communication. All members participated in drawing up the resolutions.
Whenever necessary, representatives of the shareholders and employees held separate preliminary discus-
sions prior to the meetings.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҚ
Plenary Supervisory Board
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Héloïse Temple-Boyer
5/5
100
Thore Ohlsson
5/5
100
Jean-François Palus
(until 24 May, 2023)
2/2
100
Jean-Marc Duplaix (since 24 May, 2023)
3/3
100
Fiona May
5/5
100
Martin Köppel
5/5
100
Bernd Illig
5/5
100
TKHDWWHQGDQFHRIWKHPHPEHUVRIWKH6XSHUYLVRU\BRDUGDWFRPPLWWHHPHHWLQJVZDVқҚҚIRUDOOPHPEHUV
as well.
The Supervisory Board discussed in detail all of the Company’s key business transactions, based on the re-
ports by the Management Board and the Committees, and presented its own ideas. The Management Board
provided the Supervisory Board with detailed information on any deviations of the business performance
from the budgeted figures, both in writing and orally. The Supervisory Board verified these explanations us-
ing the supporting documents, which were always submitted in appropriate time before the meetings. The
Supervisory Board was involved in all key decisions at an early stage. In addition, the Chair of the Supervi-
sory Board maintained, and continues to maintain, regular verbal or written contact with the CEO and keeps
herself informed of all major developments. Overall, these discussions did not give any indication that the
Management Board was managing the Group in anything other than a lawful and proper manner.
The Supervisory Board members took part, on their own initiative, in the educational and training measures
necessary for the performance of their duties. The Company supports the Supervisory Board members in
their training activities, for example by having the Legal Department regularly prepare changes in the legal
IUDPHZRUNIRUWKH6XSHUYLVRU\BRDUGDQGUHSRUWDERXWWKHPLQWKHPHHWLQJV.,QҜҚҜҝWKH6XSHUYLVRU\BRDUG
received an update on the German Supply Chain Akt (“Lieferkettensorgfaltspflichtengesetz”, LkSG) and the
Corporate Sustainability Reporting Directive (CSRD). There is an established onboarding process to familiar-
ize new Supervisory Board members with the PUMA business model, group structures and special topics.
MAIN ADVISORY FOCUS
,QWKHҜҚҜҝILQDQFLDO\HDUWKHPDLQIRFXVZDVRQWKHIROORZLQJLVVXHV UHYLHZDQGDSSURYDORIWKHҜҚҜҜFRQ-
VROLGDWHGDQGDQQXDOILQDQFLDOVWDWHPHQWVDQGWKHҜҚҜҜQRQ-financial report, dividend proposal, setting the
agenda for the Annual General Meeting on 0D\ҜҞҜҚҜҝUHDOL]DWLRQRISHUVRQQHODGMXVWPHQWVRQWKH0DQ-
DJHPHQWBRDUG LQSDUWLFXODUDSSRLQWPHQWRI0DULDVDOGHVDVPHPEHURIWKH0DQDJHPHQWBRDUG &KLHI
3URGXFWOIILFHU &3O IURP-DQXDU\қҜҚҜҝDQGH[WHQVLRQRIWKHFRQWUDFWRI+XEHUW+LQWHUVHKHUDs Chief
Financial Officer (CFO)), follow-up of the new strategy of the Management Board regarding elevating the
brand and growing the market share in the US and China, re-organization of the marketing organization,
current business and revenue development, markets and trends, financial position of the Group, corporate
DQGEXGJHWSODQQLQJҜҚҜҞDVZHOODVPHGLXP-term planning, including investments, further improvement of
the compliance management and the risk management and internal control system as well as material liti-
gation in the Group. In addition, the Supervisory Board regularly dealt with the development and implemen-
tation of sustainability topics.
As every year, the Personnel Committee and the Supervisory Board determined the degree of achievement
RIWKHWDUJHWVIRUWKHLQGLYLGXDO0DQDJHPHQWBRDUGPHPEHUVZLWKUHJDUGWRҜҚҜҜ.TKH6XSHUYLVRU\BRDUG
decided on the individual targets for the variable MDQDJHPHQWBRDUGUHPXQHUDWLRQIRUWKHҜҚҜҝILQDQFLDO
year upon recommendation of the Personnel Committee.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
ққ
CONFLICTS OF INTEREST
The members of the Supervisory Board are required to disclose to its Chair any conflicts of interest without
undue delay. In the past year, no such disclosures were made.
COMMITTEES
TKH6XSHUYLVRU\BRDUGKDVHVWDEOLVKHGIRXUFRPPLWWHHVWRSHUIRUPLWVGXWLHV the Personnel Committee,
the Audit Committee, the Nominating Committee and the Sustainability Committee. The Personnel Commit-
tee, the Audit Committee and the Sustainability Committee each comprise two shareholder representatives
and one employee representative. The Nominating Committee is composed only of shareholder representa-
tives. The composition of the committees can be found in the notes to the consolidated financial statements.
The Supervisory Board receives regular reports on their work.
PERSONNEL COMMITTEE
The Personnel Committee has the task of preparing the conclusion and amendment of employment con-
tracts with the members of the Management Board, reviewing the remuneration report and establishing
policies for human resources and personnel development. It mHWWRRQHUHJXODUPHHWLQJLQҜҚҜҝGHFLGHGRQ
WKHWDUJHWDFKLHYHPHQWIRUWKHLQGLYLGXDO0DQDJHPHQWBRDUGPHPEHUVDQGVHWWKHWDUJHWVIRUҜҚҜҝ.,QDGGL-
WLRQWKHDSSURYDORIWKH/T,SURJUDPVҜҚҜҝZHUHWKHIRFXVRIWKHGLVFXVVLRQV.&RUUHVSRQGLQJUHFRPPHQGD-
tions for resolutions were made to the Supervisory Board.
Personnel Committee
Attendance at meetings
Attendance in %
Héloïse Temple-Boyer (Chair)
1/1
100
Fiona May
1/1
100
Martin Köppel
1/1
100
AUDIT COMMITTEE
TKH$XGLW&RPPLWWHHKHOGIRXUUHJXODUPHHWLQJVLQWKHILQDQFLDO\HDUҜҚҜҝ.,QSDUWLFXODUWKH$XGLW&RPPLW-
tee is responsible for the review of the accounting, particularly comprising the consolidated financial state-
ments and the group management report, group half year report, interim financial information and the sin-
gle entity financial statements in accordance with the German Commercial Code (HGB). It is furthermore
responsible for monitoring the accounting process, the effectiveness of the internal control system, the risk
management system, the internal audit system, compliance and the statutory audit of the financial state-
ments, with particular regard to the process of selecting an auditor. The Audit Committee is also responsi-
ble for conducting the selection process of the auditor. In addition, the Audit Committee monitors the inde-
pendence of the auditor and ensures that the non-audit services of the auditor commissioned by the Man-
agement Board do not give rise to any grounds for disqualification or partiality or any threat to independ-
ence. The Audit Committee issues the audit mandate on behalf of the Supervisory Board to the auditor
elected by the general meeting, determines the audit areas of the audit, monitors the quality of the audit
and the services additionally provided by the auditor and agrees the fee with the auditor. Heads of the corpo-
rate functions were also available for reports and questions on individual agenda items at the committee
meetings. The Audit Committee meets regularly with the auditor, also without the Management Board.
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҜ
Audit Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Thore Ohlsson
(Chair until 24 May, 2023)
4//4
100
Héloïse Temple-Boyer
(until 24 May, 2023)
2/2
100
Jean-Marc Duplaix
(since 24 May, 2023, Chair)
2/2
100
Bernd Illig
4/4
100
NOMINATING COMMITTEE
The Nominating Committee has the task of proposing suitable candidates to the Supervisory Board for its
election proposals to the Annual General Meeting. It held two meetings in the last financial year.
Nominating Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Héloïse Temple-Boyer (Chair)
2/2
100
Fiona May
2/2
100
Jean-François Palus
(until 24 May, 2023)
1/1
100
Jean-Marc Duplaix (since 24 May, 2023)
1/1
100
,QҜҚҜҞWKHPDLQIRFXVRIWKH1RPLQDWLQJ&RPPLWWHHVΝVZRUNZLOOOLHRQWKHVXFFHVVLRQSODQQLQJIRUTKRUH
Ohlsson and on finding the right candidate for the expansion of the Supervisory Board.
SUSTAINABILITY COMMITTEE
TKH6XVWDLQDELOLW\&RPPLWWHHPHWRQFHLQWKHҜҚҜҝILQDQFLDO\HDUWRGLVFXVVWKHFRPSDQ\
VVXVWDLQDELOLW\
strategies. The focus was emphasized on the evaluation of the "Conference of the People," sustainability-
related projects within the company and relevant, upcoming legislative projects. The Sustainability Commit-
tee consists of three members.
Sustainability Committee
Attendance at meetings (referring to
regular and extraordinary meetings)
Attendance in %
Fiona May (Chair)
1/1
100
Héloïse Temple-Boyer
1/1
100
Martin Köppel
1/1
100
CORPORATE GOVERNANCE
$VLQSUHYLRXV\HDUVWKH6XSHUYLVRU\BRDUGDGGUHVVHGFXUUHQWGHYHORSPHQWVLQWKHILQDQFLDO\HDUҜҚҜҝUH-
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ҜҚҜҜ *&*& .TKH*&*&FRQWDLQVHVVHQWLDOVWDWutory regulations and recommendations for the manage-
ment and supervision of listed companies and standards for responsible corporate governance. The corpo-
rate governance standards have long been a part of the corporate routine.
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rate Governance Statement. The Company satisfies all requirements of the GCGC, to the extent required by
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PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҝ
Company’s website under https://about.PUMA.com/en/investor-relations/corporate-governance at
STATEMENT OF COMPLIANCE.
ANNUAL FINANCIAL STATEMENTS ADOPTED
The annual financial statements for PUMA SE prepared by the Management Board in accordance with the
German Commercial Code (Handelsgesetzbuch/HGB), the consolidated financial statements for PUMA
JURXSSUHSDUHGLQDFFRUGDQFHZLWK6HFWLRQҝқҟD+*BRQWKHEDVis of the International Financial Reporting
Standards (IFRS) and the combined management report for PUMA SE and the PUMA Group, each for the
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Supervisory Board to audit the annual financial statements and the consolidated financial statements and
have been given an unqualified auditor’s opinion. The lead auditor on the KPMG team is Matthias Koeplin
DQGKHKDVEHHQDVVLJQHGWKHUROHVLQFHҜҚҜҜ.380$KDVQRWSDLGQRQ-audit related fees in excess of audit
related fees to its auditor.
In their report, the statutory auditors conclude that PUMA’s institutionalized risk management system, in
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tecting at an early stage and countering any developments that might jeopardize the continuity of the Com-
pany as a going concern. The Supervisory Board has been updated by the Management Board regularly on
all relevant risks in this regard, in particular its assessments of market and procurement risks, financial
risks (including currency risks) and organizational risks.
The accounting records, the audit reports from the statutory auditors and the Management Board’s and Su-
pervisory Board’s recommendation on the appropriation of net profit were made available to all members of
the Supervisory Board in a timely manner. At thHPHHWLQJRIWKH$XGLW&RPPLWWHHRQFHEUXDU\ҜҠҜҚҜҞDQG
at the subsequent Supervisory Board meeting held on the same day, the statutory auditors reported on the
key results of their audit and discussed them in detail with the Management Board and the members of the
Supervisory Board. No discrepancies were detected.
The Supervisory Board reviewed in detail the annual financial statements, the combined management re-
port for PUMA SE and the PUMA Group, the Management Board’s and the Supervisory Board’s recommen-
dation on the appropriation of net profit and the consolidated financial statements and raised no objections.
In accordance with the recommendation of the Audit Committee, the Supervisory Board agreed with the re-
sults of the audit of both statements and approved the annual financial statements of PUMA SE and the con-
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been adopted.
The Management Board and the Supervisory Board resolved to propose to the Annual General Meeting a
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ket were discussed. The payout is conditional to an overall sound macroeconomic environment. A total
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,QLWVPHHWLQJRQFHEUXDU\ҜҠҜҚҜҞWKH6XSHUYLVRU\BRDUGDOVRDSSURYHGWKHQRQ-financial report in accord-
DQFHZLWKiiҝқҟFLQFRQMXQFWLRQZLWKiiҜҢңFWRҜҢңHRIWKH*HUPDQ&RPPHUFLDO&RGH +*B .
PUMA Annual Report ҜҚҜҝ
↗ To our Shareholders
қҞ
THANKS
We would like to express our gratitude and recognition to the Management Board, the management teams
at the Group companies, the Works Council and all our employees for their hard work and their outstanding
FRRSHUDWLRQLQҜҚҜҝ.:HORRNIRUZDUGWRҜҚҜҞD\ear of sports in which PUMA will launch its largest-ever
brand campaign and come to the market with an impressive portfolio of new and innovative products.
Herzogenaurach, ҜҠFHEUXDU\ҜҚҜҞ
On behalf of the Supervisory Board
Héloïse Temple-Boyer
Chair
PUMA Annual Report 2023
↗ Our People
15
OUR PEOPLE
PUMA Annual Report 2023
↗ Our People
16
OUR PEOPLE*
Our PUMA Family is the key to our success. Our people strategy is the foundation of PUMA’s unique work
environment and corporate culture, which helps us attract the world’s best talent and shapes the future
success of the company. Our people strategy is centred on three main pillars: People First, Sustainable
People Practices and Digitalisation.
People First means understanding employees' needs, values, and potential of our employees and putting
them at the centre of our decision making. That helps us create an inclusive culture that respects diversity,
promotes health and well-being, and encourages personal and professional growth.
Sustainable people practices create a workplace culture that prioritises employee health and happiness,
diversity, and inclusivity, and offers ample opportunities for career growth. Our sustainable people practices
are central to building a resilient organisation. By thinking ahead and equipping our employees with the
future skills and leadership qualities necessary, we ensure the long-term success of PUMA.
Digital tools in Human Resources improve work experience and help us stay competitive and agile in the
fast-changing business landscape. By using digital technology, we are improving efficiency, data-driven
decision-making, candidate and employee experiences. We deploy easy-to-use digital tools that enhance
collaboration and productivity and offer digital literacy programs to ensure all employees are equipped to
thrive in a digital environment.
Putting the human element first ensures that our pursuit of environmental and technological excellence is
responsible and rewarding. The result is a sustainable future where innovation and well-being go hand in hand.
PUMA LIFE CYCLE
RECRUITING/ONBOARDING
People are our most valuable asset. We adopt a data-driven approach to talent acquisition to ensure that
PUMA remains the employer of choice in the minds of external applicants. We analyse previous trends in
recruitment, identify the primary source of talent inflow, and tailor our talent acquisition approach accordingly.
To complement our goal, we employ digital platforms, social media, and the PUMA career website to
engage with talent around the world.
To ensure a continuous talent pipeline, we cultivate links with universities through career events, company
lectures and master classes. We also regularly participate in external professional events, panel
discussions, and seminars to build a solid talent network.
Over the past two years, we have fostered a deeper relationship with candidates by offering them the chance
to participate in unique PUMA digital events. These events allowed candidates to speak with top officials at
PUMA and offer suggestions on how to improve the brand.
Our onboarding process should not only provide the new starters with a great first day experience but also
guarantee that they will work effectively and feel a member of the PUMA family as soon as possible. This
effective onboarding serves as the foundation for a successful employee journey, aligning our new team
members with our culture, values, and mission. It ensures compliance, clarifies roles, and provides
essential support, enabling a seamless integration. This process not only fosters productivity and teamwork
but also enhances our employees' sense of belonging and growth within PUMA.
*
Contains also all information related to company culture.
PUMA Annual Report 2023
↗ Our People
17
LEARNING AND DEVELOPMENT
Talent management
We believe that each employee is in charge of their own personal development. At PUMA, we foster a culture
centred around feedback and results, coupled with a self-directed learning mindset through an integrated
talent management approach. At least annually, we evaluate of all our employees, assessing their
performance and potential. Personal development plans are crafted, and we identify the right individuals to
prepare them for shaping the future of PUMA.
Global talent conferences are held to assess the entire PUMA workforce, including all levels of
management. Criteria such as individual performance, competencies, potential, learning agility, ambition,
and mobility are used for evaluation. A targeted analysis of our employees' profiles allows us to align
internal talent with upcoming career opportunities. This helps us build a strong succession pipeline and
address future competency needs.
Our unwavering focus on internal talent mobility provides our employees with opportunities for professional
growth and cross-cultural experience, resulting in an enhanced learning curve on both professional and
personal levels. Utilizing digital platforms, such as Workday's “Job Alert” and “Talent Marketplace” feature,
our internal talents can easily find job opportunities.
For instance, in 2023, a substantial number of internal moves, including relocations abroad, were reported.
Overall, we successfully filled three out of four vacant key positions worldwide through internal promotions
or horizontal transfers, with 60% of open positions filled by internal candidates. This accomplishment
confirms the effectiveness of our talent and development strategy.
Our overarching goal is to minimize voluntary turnover and maintain a permanent employment rate of over
80% for our workforce. In 2023, 92% of our employees worldwide held permanent employment contracts,
and over 31% were governed by collective agreements. The turnover rate is intricately linked to the share of
retail business in respective markets and regions, with the employee-induced turnover rate standing at 24%
(7% for non-retail employees and 39% for retail employees). The overall turnover rate, including retail
employees, was 32% shows a decrease of 3% compared to last year. At the end of 2023, 22% of our
employees were working part-time.
↗ T.01 EMPLOYMENT CONTRACTS (PERMANENT/FIXED TERM)
Permanent
Fixed term
Region
Total
Total
Female
Male
Diverse
Total
Female
Male
Diverse
Europe
4,982
4,259
2,206
2,051
2
723
419
304
0
EEMEA
3,876
3,775
1,391
2,384
0
101
40
61
0
North America
3,788
3,203
1,640
1,552
11
585
266
318
1
Latin America
3,775
3,773
1,666
2,106
1
2
0
2
0
Asia/Pacific
4,743
4,359
2,667
1,688
4
384
215
168
1
Total
21,164
19,369
9,570
9,781
18
1,795
940
853
2
PUMA Annual Report 2023
↗ Our People
18
↗ T.02 EMPLOYMENT CONTRACTS (PERMANENT/FIXED TERM) (IN %)
Employment contracts
Female
Male
Diverse
Total
Full-time
47
53
0
100
Part-time
58
42
0.2
100
Development
Our employees’ ongoing professional and personal development ensures they have the necessary skills to
support internal growth and drive the company forward.
Strategic workforce planning and the use of Workday help us to identify skill gaps and determine the
capabilities of our employees. We provide a wide choice of training and development options, including
courses, workshops, and coaching – both online and offline, standardised or tailored to specific needs. We
offer a cutting-edge learning environment for both internal and external training classes, built into the
Workday Human Capital Management system. This is based on the idea of lifelong learning, which fosters a
self-driven learning culture.
In 2023, 18,527 employees worldwide attended 160,481 hours of training and workshops. This averaged 9
hours and € 226 per FTE for training activities. Compared to 2023, the average number of training hours per
FTE increased by 2 hours. We achieved this by a proactive learner engagement strategy, including fun
activations on various topics, a gamified approach, and internal learning competitions. The most engaged
learners worldwide were rewarded quarterly with the “Top Learner Award”. Based on this strategy, PUMA
was nominated for an “eLearning Journal” Award 2024 in the “Learner Engagement” category.
LinkedIn Learning and GoodHabitz offer more than 23,000 online training courses in up to 13 languages for
personal and professional growth. Additionally, PUMA employees actively generate product-specific
learning content.
Employees around the globe can access the language learning platform on any device. Speaking a second
language helps people understand each other, makes connections, and increases diversity. It also enhances
our internal mobility. While the global focus is on English, people can acquire or perfect any other language
for business or travel.
Our entire staff, including retail employees, can now learn a new language online, at their own pace and in a
way that fits their needs. By offering weekly language training in an office classroom, PUMA helps
employees integrate locally faster by eliminating the need to drive to external courses after work.
To support our global workforce during challenging times, we focused on mental health, resilience,
mindfulness, and emotional stability in 2023. All our current classroom training is based on hybrid concepts
to ensure that our employees can learn in the way that is best for them.
We continue to provide our digital agile coach programme to workers globally to establish an agile learning
organisation and increase agile working practises. Since its launch, approximately 190 employees around
the globe have completed the programme by 2023. We focus on need-based training at three levels – Agile
Rookie, Agile Facilitator, and Agile Coach – to equip the right people with the right skills. Various business
units are actively using agile ideas and frameworks such as Scrum, Kanban, Design Thinking, and OKRs, in
their daily operations and strategic planning.
PUMA Annual Report 2023
↗ Our People
19
Leadership Training ILP/ILP²/PLE
Our leaders are vital for PUMA becoming FOREVER.FASTER. We highly value their skills and leadership
expertise in mastering complex challenges in a volatile world while achieving our goals of excellence.
Our International Leadership Programme (ILP & ILP²) provides staff with essential competencies and
promotes a shared knowledge of our leadership culture. PUMA leaders receive comprehensive training and
coaching, including interactive learning, roleplay, best-practice learning, and joint projects. Mindful
leadership and agile work are emphasised. The programme's modular design allows managers to apply
their newly acquired knowledge between seminars. 191 global leaders took part in this state of the art
programme.
We continued to promote healthy and sustainable leadership in 2023 with the PUMA Leadership Expedition
programme. It is designed to teach leaders how to lead well in a VUCA world marked by volatility,
uncertainty, complexity, and ambiguity. Self-driven learning, nugget-learning, learning sprints, and peer-
learning underpin this virtual, easily accessible course.
Our leaders can choose what, when, and how to learn from over 130 one-hour learning nuggets with a
balanced mix of trainer-led virtual sessions and self-directed learning. To maximise learning and transfer
success, the programme is centred on Learning Sprints, which include trainer-led sessions, self-driven
nugget learning, retrospective sessions with coaches, and group assignments. 67 talents completed the
programme successfully in 2023.
First-time managers get PUMA-tailored training “From employee to manager” to prepare them for their
new role and ensure a common concept of leadership at PUMA. This programme includes training modules
and individual coaching as well as online pre- and post-learning. Classroom trainings provide new
executives with recruiting and appraisal skills.
Speed Up/Speed Up²
Retaining talent and speeding up their progress is important for the success of our business. Two selective
development programmes, Speed Up and Speed Up², are designed to help us reach this goal by bringing out
the best in our people.
An intensive curriculum of cross-functional projects and tasks, coaching, mentoring, and specialised
training prepares employees for their next career steps. Participants also get to meet top management and
build strong networks around the world.
Future Talent
We are always looking for future talent we can develop and equip with the relevant skills to take on
demanding PUMA Group responsibilities. We participate in various career fairs and university initiatives
both locally and abroad to approach potential employees and identify suitable candidates. Plenty of options
in an international work environment make PUMA an excellent place for career starters.
Nine apprentices and six dual students joined the PUMA Headquarters in Herzogenaurach in 2023. Dual
study programmes are available in International Business, Fashion Management, and Business Informatics.
Students acquire theoretical grounding through partnerships with various universities and practical
experience in different PUMA teams. Our apprentices either train as industrial clerks, IT specialists or retail
sales manager. They work in various company departments to build personal and professional skills and
increase their knowledge while attending vocational school. By the end of 2023, PUMA employed 41 trainees
and dual students.
Internships and working student positions are another way to become familiar with PUMA. Students from
around the world get six months of work experience as well as the opportunity to build their network and
hone their talents. By the end of 2023, roughly 140 interns and working students were part of the PUMA
family.
PUMA Annual Report 2023
↗ Our People
20
Future talents at the PUMA Headquarter
Feedback
We value internal and external feedback at PUMA, as it reveals whether we are on track and helps us grow.
We compare ourselves to other organisations and gain valuable insights from our employees.
Our "listening strategy" includes surveys, pulse surveys, focus groups, interviews and sentiment analysis to
gauge employee mood and understand their needs. For this, we use tools such as Amber, Leena AI, and
Workday. Our Top Employer certification, Great Place to Work award, “berufundfamilie” audit, and other
honours reflect regular industry benchmarking.
Since 2009, we have conducted global employee opinion surveys regularly to monitor employee engagement
and collect feedback on various topics. Overall, 15,339 employees participated in our 2023 global survey to
share their workplace and work life opinions. This equates to an 85% participation rate (2021: 86%). Despite
geopolitical tensions in Europe and their far-reaching social and economic effects, from 13 categories two
categories saw an increase in favourable scores, four categories stayed at their high levels, and seven
categories saw a slight 1% decrease from the last survey. Our poll results beat or match market data,
including high-performance data, in all but four categories. High-performance companies outperform the
market financially and consistently score excellently in surveys. This positive feedback inspires us to
continue and further strengthen the measures we have implemented. We shared the survey results globally,
locally, and at departmental level, and follow-up actions were devised.
Engagement
Outstanding performance and ongoing growth demand our employees' commitment and dedication. We
monitor employee engagement by regular global employee opinion surveys. The most recent one achieved
again an extraordinarily high engagement score of 91%, compared to 92% for the previous survey. This
implies our engagement score over the last three surveys has remained strong, something we are very proud
of. We value our employees' high level of engagement and brand loyalty and intend to retain this in the future.
We started already to implement the action plan resulting from this year's global employee survey.
PUMA Annual Report 2023
↗ Our People
21
↗ G.01 EMPLOYEE ENGAGEMENT SCORE
REWARD, RECOGNITION & BENEFITS
Compensation & Benefits
The attractive performance-based compensation system at PUMA consists of fixed base salary, PUMA
bonus schemes, profit-sharing programs and various social benefits and intangible benefits. We also offer
long-term incentive programs to the senior management level that honours the sustainable development
and performance of the business. The bonus system is transparent and globally standardised. Incentives
are exclusively linked to company goals.
Ensuring fair and non-discriminatory compensation at PUMA is one of our strategic priorities. Our
compensation framework is based on analytical job evaluations and a global grading system. Since the
criteria to be evaluated relate exclusively to characteristics of the job – not to the job holder – the
remuneration system as such is gender-neutral. This enables us to rule out any gender-specific
discrimination emanating from the compensation system.
After becoming Universal Fair Pay Analyst in Germany in 2022, PUMA was certified as Universal Fair Pay
Developer in Germany by FPI Fair Pay Innovation Lab as we successfully closed the adjusted pay gap in
January 2023. We extended the gender pay analysis to our subsidiaries in Europe and EEMEA markets by
using the consistent methodology. For Sweden and United Arabic Emirates we also closed the adjusted gap
in 2023. Certain regression analysis results look optimistic, and we are confident to close the adjusted pay
gap with the support of both local and global management in other European countries soon. For markets
with highly diversified workforce, nationality does not have a significant impact in the analysis. In 2024, the
gender pay gap analysis will be continuously conducted and introduced to our other regions to enhance
internal fairness.
In addition, we have continued our cooperation with the Fair Wage Network and are able to access
benchmarks for all of our subsidiaries and analyse them in terms of living wages as defined by the Fair Wage
Network. For the year 2023 we can confirm, with regards to the Living Wage Adjusted Mean benchmark as
defined by the Fair Wage Network, that all of our employees are earning a living wage or more.
Wellbeing
At PUMA, we care about the well-being of our people. Through a variety of services and benefits, we strive
to improve the health and happiness of our employees. We started the wellbeing approach at our
headquarters in Herzogenaurach, Germany. All PUMA companies around the world have adopted it and
adapted it to their local needs and regulations. It is now an important part of all PUMA subsidiaries around
the world.
There are four components to our wellbeing programme: Flex, Social, Financial and Athlete.
As a sports company, we offer regular in-house sports classes and training, sporting events and free access
to the gym. We provide outdoor facilities for football, volleyball, basketball, tennis, and paddle tennis. Our
69%
71%
91%
92%
91%
2013
2015
2019
2021
2023
2023
PUMA Annual Report 2023
↗ Our People
22
exercise classes include meditation, yoga, Zumba, jumping fitness, and Pilates. We host bouldering, stand
up paddling, trampolining, bowling, snowshoeing, and skiing events, among others.
Our "Be Well Weeks", which promote healthy lifestyles, offered free health checks and nutritional advice, as
well as the opportunity for employees to explore the latest fitness and sports trends. We provide access to
health and wellness resources, such as ergonomic assessments, mental health days, and health-related
information. To foster camaraderie and a sense of community, we organise team-building and social events
for our employees.
Flexible Working Conditions
The wellbeing of our people goes hand in hand with excellent working conditions based on a unique culture.
We offer a range of models, such as flexible working, mobile office, part-time and sabbaticals, to help our
employees balance their work and personal lives and manage stress. They can choose from these models
at different points in their lives.
All our offices around the world have a hybrid working model, which is very flexible in terms of when and
where people work. Employees in Germany can take advantage of free employee assistance services
provided by one of our partners. Our headquarters in Herzogenaurach was awarded the German "audit
berufundfamilie" certificate in 2015, which it has held ever since. The certificate recognises among other
offers services such as a parent-child office, a nursing room, day care and summer camps for children
during school holidays.
PROGRESSION & PERFORMANCE
Digitalised Infrastructure (Digitalisation)
A big part of PUMA's plan to streamline processes and improve the employee experience is investing in our
digital infrastructure. Since 2017, Workday has been our main human capital management (HCM) system. It
covers HR tasks at all stages of the recruitment process, from candidate to employee experience,
simplifying tasks such as recruitment, talent management and employee engagement. As a result, the
workforce is seamlessly integrated throughout the candidate and employee lifecycle.
Through this digital platform, our employees can access HR resources and data at any time, in a controlled
and secure environment that protects data privacy and integrity. It gives both employees and managers the
tools and processes they need to manage people effectively.
Workday's easy-to-use dashboards give managers clear, actionable insights for strategic planning and
decision-making. And because all of our global data is stored in one place in Workday, it enables
comprehensive analytics that help us make evidence-based decisions and drive tangible results.
By using such a digitalised infrastructure, we aim to maintain our focus on operational efficiency and
improving our HR practices throughout the PUMA employee lifecycle. This supports PUMA's overall goal of
improving workplace operations and the employee journey. It also helps us to prepare for the future to
better deal with the dynamics of challenging labour markets.
OCCUPATIONAL HEALTH & SAFETY
We want our employees to be healthy and safe, so we make sure that health and safety issues in the
workplace are taken seriously. Although the COVID-19 pandemic ceased in 2023, we continued to provide
free masks, rapid tests and vaccines where needed. To help our employees cope with this politically and
economically challenging environment and its increased mental stress, we focused on mental wellbeing,
resilience, and mindfulness in 2023.
Our global occupational health and safety policy underlines the importance of this issue. PUMA has a
central Health and Safety Committee at our headquarters in Herzogenaurach, which meets every three
months. The health and safety experts on this internal committee exchange information on health problems
PUMA Annual Report 2023
↗ Our People
23
and risks and carry out regular health and safety inspections. These are supplemented by inspections by
official bodies such as the German Berufsgenossenschaft. Each of our major sites has local health and
safety experts. Our Global Director People and Organisation, as part of our Executive Management Team,
reports at least quarterly on health and safety issues to our Executive Committee.
In our Headquarter in Herzogenaurach we got successfully certified for the ISO 45001 standard. ISO 45001 is
an international standard that outlines the requirements for an occupational health and safety management
system (OHSMS) and provides a framework to proactively manage and improve the occupational health and
safety performance. This certification not only demonstrates our commitment to safety and compliance with
health and safety law but also helps us to identify and address safety risks.
We have set ourselves the bonus-related goals of zero fatalities and lowering the average injury rate year on
year. For 2023, we set a goal to stay below a lost time injury rate of 0.50. The lost time injury rate expresses
the number of lost time injuries per 200.000 worked hours. In addition to conducting safety training courses
at all our sites, we also offer online training programs to prepare employees for potential emergency
situations and thus reduce the number of accidents. In 2023, we promoted our digital OHS training course to
all our sites, which included hygiene and proper mobile office behavior. Last year, we provided a total of
27,764 hours of safety training, while 10,769 employees were trained in fire safety and 7,692 employees in first
aid. In 2023, 98 workplace accidents requiring a work stoppage were recorded worldwide. This corresponds
to a lost time injury rate of 0.46 compared to 0.45 in 2022. The lost time injury rate for PUMA SE was zero
and zero in the previous year. Another indicator of employee engagement and the health of our workforce is
the rate of absence due to sickness, which was 1.95% in 2023. We recorded no fatal accidents, and the rate
of occupational diseases was zero at PUMA in the last 12 years, including 2023.
↗ G.02 LOST TIME INJURE (FREQUENCY) RATE
SOCIAL ENGAGEMENT
Community Engagement
2023 was another good year for PUMA's community engagement. With the support of our employees, we
engaged with local communities around the world through various projects. These ranged from beach
clean-ups and tree planting to organising and participating in charity runs. Colleagues also helped
underprivileged people, especially children, by donating food and school supplies and started many other
wonderful initiatives.
0.81
0.37
0.35
0.39
0.45
0.46
4.06
1.87
1.66
1.96
2.27
2.29
2018
2019
2020
2021
2022
2023
LOST TIME INJURY RATE per 200,000 working hours
LOST TIME INJURY FREQUENCY RATE per 1,000,000 working hours
PUMA Annual Report 2023
↗ Our People
24
Community engagement activities: Reforestation in Renca (from PUMA Chile)
Here are two examples of how they have helped:
PUMA Ukraine supports children affected by the war. Many of these children have lost everything -– their
childhoods, their homes, and their friends. In collaboration with the Peace in Amour Shelter in Dnipro,
PUMA Ukraine employees sought to bring joy and warmth to these youngsters. Corporate staff, store
managers and warehouse staff personalised gifts for the children by printing their names on T-shirts,
backpacks, and hoodies.
The PUMA team in South Africa organised several projects. As part of a beach clean-up, they picked up litter
from the beach and riverbanks. They also went to animal shelters and walked and played with the animals,
bringing food and blankets for the pets. The biggest CSR events take place every year at the head office and
in the stores: In 2023, the group prepared 2000 staple food parcels and 850 amenity kits for food banks,
children's homes and elderly people who can not move around. South African retail workers across the
country packed individual sandwiches to send to organisations in their local areas.
We have set ourselves the ambitious goal of spending at least twice as many hours on social engagement as
our average full-time equivalents (FTE) this year. We encouraged all of our employees around the world to
participate and recorded projects and employee engagement on an online platform. In total, initiatives led
by our subsidiaries on five continents contributed a total of 57,344 hours (3,113 for PUMA SE) of community
engagement. With the projects, we helped protect the environment, promote health and fitness, fight
discrimination or support education for children in need. Often these projects were carried out in
cooperation with local non-profit organisations. Considering that the number of full-time employees (FTEs)
in 2023 was 18,681 (1,255 for PUMA SE), we significantly exceeded our target. Since the start of our
community engagement program in 2016, we have recorded now over 200,000 community engagement
hours globally.
PUMA Annual Report 2023
↗ Our People
25
↗ G.03 COMMUNITY ENGAGEMENT 2023
CHARITY CAT
Charity Cat organisation founded by employees continues to support projects near and far in 2023
The members of Charity Cat have a huge heart for people in need – whether that is right next door or across
the globe. The charitable organisation was founded by PUMA employees in 2004 and has been fundraising,
supporting special causes, and partnering with different other charities ever since. There is Sozialtreff
Erlangen, for example, in the next town over from PUMA’s headquarters in Germany. Charity Cat not only
supports Sozialtreff Erlangen with the food donations, but members of the charity actually help out within
that organisation.
Further afield, on the Philippine island Samar to be precise, Charity Cat has been supporting the activities of
the charity Herz zu Herz e.V. (which means “Heart to Heart” in English). The goal is to help the poorest
families and children there to build a roof over their heads, make sure they have enough to eat and send
them to school. This year’s success story from Samar was that several children were able to finish high
school, while two young people went through culinary school, with one of them landing a job in a five-star
hotel at the end!
Another long-time partnered organisation of Charity Cat is FONMEH e.V. in Haiti, that has built an orphanage
for a group of children and young people, keeping them off the streets and in education. In Haiti, the situation
has gotten a lot worse: due to droughts and inflation, around 40% of the country’s population is suffering
extreme hunger or does not have enough to eat. So, Charity Cat was glad to help at least the kids in
FONMEH’s orphanage – who have been sharing their food with friends as neighbours – as well as other local
people in Haiti with a special financial donation in 2023, on top of the usual clothes and financial support.
Other Charity Cat activities included payments for food donations to be driven to the Ukraine, where the war
that started over one year ago is still ongoing and affecting many people, as well as emergency financial
donations for the victims of the huge earthquake in the already hard-hit area of south eastern Turkey in
spring and the catastrophic flooding that struck eastern Libya in the summer via Aktion Deutschland Hilft
e.V.
Besides financial support, Charity Cat also gives away PUMA clothing and shoes to partnered projects. For
example „Wir packen’s an e.V.“received several donations of clothing, underwear and especially shoes, that
was distributed to refugees fleeing their countries via Greece, France or Bosnia.
Charity Cat raises money through generous monetary donations from individuals, by fundraising during
employee events and by organising internal sample give-aways of products provided by PUMA, during which
employees can donate money for different Charity Cat projects.
APAC
11,977
21%
LATAM
8,548
15%
North America
4,563
8%
Europe
13,089
23%
EEMEA
19,167
33%
PUMA Annual Report 2023
↗ Our People
26
DIVERSITY, EQUALITY & INCLUSION
At PUMA, equality and non-discrimination are an important part of our culture. We encourage and support
people of all genders and believe that diversity drives success. The different nationalities and backgrounds
of our employees is one of our key strengths. We employ people from 143 countries and at our home base in
Germany, we have people with more than 81 different passports. BE YOU, the central tenet of the PUMA
family, is essential to creating a respectful and supportive work environment where each employee can be
their true self. We want to create a culture that fosters collaboration and fairness. That is why we are
listening to our PUMA family to address systemic barriers and identify areas for improvement.
In 2023, we reviewed our diversity policy and included employee training on discrimination and injustice,
intercultural communication, diversity, inclusion and belonging. We also hosted talks with internal and
external speakers and published articles on our internal communication platforms to raise awareness.
Celebrating diversity!
We treat all our employees fairly and equally, regardless of their gender, nationality, ethnicity, religion,
disability, age, or sexual orientation. These values are also part of our PUMA Code of Ethics (2005) and our
2010 Diversity Charter.
During Pride Month in June, for example, we celebrated our commitment to diversity and inclusion with a
“Together Forever” summer party at our headquarters, complete with food trucks, a live band and a DJ set.
Our partners from Christopher-Street-Day Nuremberg e.V. had their own stand with information about
LGBTQ+ events in the area. We also put up rainbow flags at our headquarters and lit up the building in
rainbow colours.
We share our beliefs with the rest of the world and support various NGOs and groups around the world.
For the fourth year running, PUMA worked with The Christopher-Street-Day Nürnberg e.V. to celebrate
PRIDE month in the Nuremberg metropolitan area, support the local PRIDE parade and raise awareness.
We were proud to organise our own information stand for the first time. This gave us the opportunity to
connect with the PRIDE community and showcase PUMA’s diverse and inclusive workplace culture where
employees can truly be themselves.
In 2023, PUMA North America’s (PNA) Diversity, Equity and Inclusion (DEI) team designed strategies based
on their five pillars: Environment, Talent, Learning, Advocacy, and Marketplace. PNA has four Employee
Resource Groups: BBOLD for Black and Brown Employees + Allies, Puma Association of Women (PAW) for
Women + Allies, PumALLiance for LGBTQ+ Employees + Allies, and ROAR for Asian-American and Pacific
Islander Employees + Allies. Our efforts also included trainings for leaders to improve their resources and
best-practices needed to act as an inclusive leader.
PNA’s DEI team hosted several cultural celebrations throughout the year including a conversation with
Black Panther’ Oscar winning costume designer Ruth Carter for Black History Month, Peloton instructor
and PUMA ambassador Aditi Shah for AAPI Heritage Month, and PUMA Ambassadors Dapper Dan and Alex
Toussaint for Juneteenth.
“Culture Labs” quarterly conversations meant to build a culture of belonging for everyone and “Connect &
Reflect” sessions which focus on providing safe space conversations were also offered by PNA.
PNA officially kicked off our strategic talent partnership with Clark Atlanta University, a historically black
university (HBCU), to foster talents among underrepresented groups in the industry and has, in addition,
partnerships with ALPFA, Ascend, Boston While Black, the Black Footwear Forum, National Black MBA,
College of Creative Arts and Pensole Lewis College of Business and Design, amongst other collegiate
partners. To date, this partnership has allowed PNA to impact more than 100 students and PUMA will
provide over $ 1 million in scholarships over a 5-year period.
PUMA Annual Report 2023
↗ Our People
27
Our efforts over the past year have been recognised with independent awards that we are delighted to
receive.
For the fourth year running, the Financial Times named us one of Leaders in Diversity, reflecting our
commitment to creating a diverse, equal, and inclusive culture. In terms of diversity, we are proud to be
included in the Pride Index and to be one of the top teams in the British Business Women Awards series.
Integrating Diversity, Equality, and Inclusion (DE & I) into the fabric of our business will help us maintain and
enhance our international competitiveness.
Actions to promote gender equality
We promote equality and are pleased that the PUMA Group has a balanced gender mix, with approximately
50% women and 50% men working with us. 44% of our STEM (Science, Technology, Engineering and
Mathematics) employees are female. Women held 43% of global leadership positions in 2023. Thanks to
PUMA's equal opportunities work, this figure has been on a high level over the last few years (2018: 40%,
2019: 41%, 2020: 43%, 2021: 44%, 2022: 44%, 2023: 43%). Due to the discontinuation of our Russian Operation
this year’s figure decreased by 1%. However, in the rest of the world the share of female managers has
increased by 0.2%. But there is still room for improvement. We are committed to increasing the number of
women in leadership positions around the world in the coming years, especially at the highest levels of
management.
↗ T.03 PERCENTAGE OF WOMEN IN MANAGEMENT POSITIONS (IN %)
Region
2017
2018
2019
2020
2021
2022
2023
Europe
31
31
35
34
37
37
39
EEMEA
38
43
42
44
42
40
35
North America
46
48
50
48
48
48
47
Latin America
35
38
38
40
45
44
44
Asia/Pacific
41
44
43
48
49
50
50
Total
38
40
41
43
44
44
43
In addition, the Supervisory Board of PUMA SE has set a target of at least two women (33%) for the
proportion of women on the Supervisory Board. For the Management Board, the Supervisory Board has set
the following targets for the proportion of women: (i) At least one woman (25%), on condition that PUMA SE
has four Management Board members, (ii) at least one woman (20%), on condition that PUMA SE has five
Management Board members, (iii) at least two women (33%), on condition that PUMA SE has six
Management Board members. We set ourselves an implementation deadline by October 31, 2026.
We want to continuously support the development of women in management positions. For this reason, we
offer special training and access to inspiring networks. The exchange with experienced female managers is
intended to encourage and motivate female employees to take on leading roles within the company
themselves.
We see the fact that PUMA has two women on the Management Board of four since January 1, 2023, with
Anne-Laure Descours (CSO) and Maria Valdes (CPO), as a success of our efforts to achieve equal
opportunities.
The average age of our employees worldwide is 32. Our employees represent all working age groups.
PUMA Annual Report 2023
↗ Our People
28
↗ G.04 AGE GROUP
BEING INCLUSIVE
We prioritise creating an inclusive workplace where people with disabilities can work and grow. We adapt
workplaces and training to meet their needs. In Germany, an elected works council member represents the
interests of employees with disabilities. In some countries, legal issues prevent our companies from
recording disability status and severity. Around 1% of our employees have told us that they have a severe
disability, but the true number is probably higher.
OFFBOARDING
Our aim is to ensure that the employee’s last day is as positive as their first day at PUMA, signifying an
appreciative end to the employment relationship. We facilitate a respectful and insightful offboarding
process, allowing both PUMA and the employee to reflect on their time together, ensure knowledge transfer,
and maintain a positive relationship post-employment. Employees are asked to complete an anonymous exit
questionnaire on Workday to provide feedback about their work experience. We will conduct an in-depth exit
interview to understand the reasons behind the decision to leave and propose to reapply in the future. We
also ask the leaving employees to remain a part of the PUMA family by joining our Alumni Network. This way
we keep in touch fostering professional networking opportunities as well as using this platform as talent
pool for future rehires.
AWARDS
As a global employer, PUMA received many awards in 2023. One of our main goals is to provide our
employees with a workplace where they can grow and take on new chances.
Forbes, together with market research company Statista, created the “World's Best Employers”
certification. We are proud to be included for the fourth year running in 2023. We were also awarded as one
of the “World’s Top Companies for Women” 2023 by Forbes and Statista. In addition, we have also been
recognised by Newsweek and Statista as one of the “World's Most Trustworthy Companies”. The Financial
Times together with Statista appointed us as “Leader in Diversity” for the fourth year in a row.
In addition to global recognition, we also received several regional awards. Focus magazine named PUMA
Europe “Top Nationaler Arbeitgeber” 2023. This award reflects our efforts to create a diverse, equal, and
inclusive culture. In terms of diversity, we are very proud to be listed in the Pride Index, and to have been
named one of the top teams in the British Business Women Awards series. All of this demonstrates that
PUMA supports and promotes diversity at all levels and around the world.
less than or equal to 20
11%
21-25
20%
26-30
21%
31-35
18%
36-40
12%
41-45
8%
46-50
5%
51-55
3%
56-60
2%
61-65
0.70% 66-70
0.10%
11%
20%
21%
18%
12%
8%
5%
3%
2%
0.7%
0.1%
0%
Less than or equal to 20
21-25
26-30
31-35
36-40
41-45
46-50
51-55
56-60
61-65
66-70
above 70
PUMA Annual Report 2023
↗ Our People
29
For five years in a row, we won India's Great Place to Work award. In addition, our Southeast Asian PUMA
site in Taipeh received three prestigious awards: HR Asia Best Companies to Work for in Asia 2023, HR Asia
Digital Transformation Awards 2023, and HR Asia Diversity, Equity & Inclusion Award 2023.
For Germany PUMA was ranked among the TOP 100 companies by Statista and was appointed as kununu
Top Company 2024 among the most popular 5% of the companies. Textilwirtschaft ranked us as number five
of the Top Arbeitgeber in der Textilindustrie in Deutschland 2023. And FOCUS magazine rated PUMA Europe
GmbH as Best National Employer 2023 in Germany.
In the Netherlands our Dutch PUMA store at McArthur Glen Designer Outlet in Roermond was awarded
Retail Store of the Year 2023.
Austria PUMA Dassler GmbH was certified as LEADING EMPLOYERS Österreich 2023 and is one of the TOP
1% of employers in Austria.
On top of this, we have been recognised as a Top Employer in 24 PUMA countries, this counts for 87% of the
PUMA population globally, including Germany, Austria, France, Italy, Spain, Poland, Ukraine, the United
Kingdom, Turkey, South Africa, India, Japan, Vietnam, South Korea, China and Hong Kong, Australia, USA,
Canada, Argentina, Chile, Brazil, Peru and Mexico, as well as in the four regions: Europe, Asia Pacific, North
America, and Latin America. We are especially proud to be named one of the Global Top Employers 2024.
Being recognised by various prestigious institutes and organisations around the world is not just an honour
but a responsibility that we take very seriously. We are committed to continuing our journey of people
excellence, ensuring that PUMA remains a place where talents are nurtured, achievements are celebrated,
and diversity is embraced.
PUMA Annual Report 2023
↗ Sustainability
30
SUSTAINABILITY
Foreword Anne-Laure Descours, CSO
31
Awards and Recognitions
34
PUMA’s FOREVER. BETTER. Sustainability Strategy 35
Sustainability Organisation and Governance
Structure
36
Most Material Aspects
42
Scope of the Report
48
Due Diligence and Risk Assessment
49
Human Rights
53
Fair Income
79
Health and Safety
89
Environment
94
Climate
104
Chemicals
133
Water and Air
142
Plastics and the Oceans
153
Circularity
156
Products
165
Biodiversity
177
Environmental Key Performance Data
184
Reporting in Accordance with the EU Taxonomy
Regulation
188
Index for Combined Non-financial Report and GRI
content
198
KPMG Assurance Statement
205
PUMA Annual Report 2023
↗ Sustainability
31
FOREWORD ANNE-LAURE DESCOURS, CSO
In 2023 we started preparing our sustainability vision for 2030 by asking our most important partners and
internal decision-makers to give us feedback on the sustainability topics that are most relevant for PUMA.
The results are included in the materiality assessment published in this report.
In parallel, we accelerated the implementation of our FOREVER. BETTER. Sustainability Strategy, making
progress towards achieving our 10FOR25 targets in Climate Action, Circularity, and Human Rights.
From a products and materials perspective, we produced eight out of ten products* according to our PUMA
Sustainability Index, which means these products are made with materials that are classified as preferred
fibres by Textile Exchange or originate from certified sources. In 2023, 99.7% of all leather was sourced from
Leather Working Group-certified tanneries, 99.2% of all cotton was sourced from Better Cotton licensed
farms or recycled and 99.4% of all paper and cardboard packaging was FSC-certified or recycled paper and
cardboard.
In Circularity, we expanded take-back programmes in three new countries. Meanwhile, almost 65% of the
polyester used for our apparel and accessories products came from recycled materials. We also started to
scale up the use of recycled cotton, which reached 8.6% in 2023.
We published the results of our RE:SUEDE project, an experiment to turn a new version of our iconic Suede
sneaker, into compost (under tailor-made industrial composting conditions) and expanded our RE:FIBRE
programme to transform textile waste and other used materials into new textiles. During the Women's
World Cup in Australia, the Swiss National Team played in RE:FIBRE jerseys, and our club partners re-
↗ ANNE-LAURE DESCOURS
CHIEF SOURCING OFFICER (CSO)
* Excluding products produced by PUMA Group company stichd and PUMA United. For further details on the reporting scope,
please refer to the Scope of the Report section.
PUMA Annual Report 2023
↗ Sustainability
32
launched the RE:FIBRE initiative by deploying new take-back bins in additional locations. Overall, 46,000
RE:FIBRE garments were produced in 2023.
To help fight climate change, we continued to source 100% renewable electricity for PUMA’s own offices,
stores, and warehouses, with either renewable electricity tariffs or renewable energy attribute certificates.
We also invested over € 2 million to electrify our PUMA car fleet and the first low carbon shipment tariffs
with our logistics service provider Maersk were implemented for our most important sea freight routes
between Asia and Europe. This has helped us to reduce our own carbon emissions by 85% (market-based,
including the purchase of RECs) compared to our 2017 baseline, as well as our logistics emissions from sea
freight by almost 50% compared to 2022.
In our supply chain, recycled material was up to 22% of the total material used for our products. Our core
suppliers continued to transition to renewable energy with large-scale rooftop solar PV installations, REC
purchases, and to transition boiler fossil fuels to renewable fuels. As a result, we reduced our absolute
Greenhouse Gas emissions (for Scope 3 category 1) by 30% compared to our 2017 baseline and our core
suppliers used 22% of renewable energy.
In 2023, PUMA joined Zero 100, a cross-sector membership-based research and intelligence organisation, to
accelerate progress on Digital Supply Chain Transformation and the path to zero carbon emissions.
On the social side, more than 222,000 factory workers received training on sexual harassment at work,
achieving our target three years ahead of schedule. As a long-term signatory to the Bangladesh
International Accord on Building and Fire Safety, we also joined Accord Pakistan and a pilot to establish an
Employment Injury Scheme in Bangladesh. Collectively, our PUMA employees contributed 57,000 hours of
community engagement work around the globe to support educational, women empowerment,
environmental, and sports activities.
Our efforts were recognised in several rankings and ratings such as the Corporate Human Rights
Benchmark, the Platform Living Wage Financials Benchmark, Know the Chain, the Carbon Disclosure
Project and being a finalist of the German Sustainability Award.
Despite this recognition, there are still many areas for improvement. We need to further strengthen our
efforts in Human Rights, Climate Action and Circularity.
Following our Conference of the People in 2022, we created our Voices of a RE:GENERATION initiative.
Empowering a cohort of four Young Voices to help PUMA identify key areas for improvement. Through
various projects, the Voices are helping us to communicate in a way that resonates with the next generation,
bringing new perspectives and challenging PUMA to think differently. The Voices have met several times
with key players at PUMA to discuss the progress and challenges surrounding our FOREVER. BETTER.
Sustainability Strategy and produced PUMA RE:GEN Reports; a podcast series created to engage and better
communicate with the younger generation on PUMA’s FOREVER. BETTER. 10FOR25 targets. The Voices have
also produced RE:HACKS (a social content series sharing tips with consumers on how to extend the lifespan
of clothing and kicks). The Voices participated in our materiality assessment, giving input into what will
shape PUMA's 2030 Sustainability Strategy.
There is only one Forever – Let’s Make it Better.
PUMA Annual Report 2023
↗ Sustainability
33
HIGHLIGHTS OF 2023
We continued to implement our FOREVER. BETTER. Sustainability Strategy working towards our 10FOR25
sustainability targets. We also started preparing for the Corporate Sustainability Reporting Directive (CSRD)
and of our next target cycle for 2030 with a new double materiality analysis.
Eight out of ten PUMA products globally were made with a significant part of recycled or certified materials,
such as better cotton or recycled polyester.
In Circularity, we re-launched product take-back initiatives at selected stores of our major football club
partners. At PUMA, we now operate take-back bins at our Headquarters Store in Germany as well as stores
in the USA, China/Hong Kong, and Australia. We equipped the Swiss National Women’s Football Team with
jerseys made from our RE:FIBRE initiative for the Women’s World Cup in Australia and launched product
take-back bins at our stores in Switzerland.
In Climate Action, we agreed on a new more ambitious science-based greenhouse gas reduction target with
the Science Based Targets initiative (SBTi) and published our first Climate Action Transition Plan. We
continued to power our own offices, stores, and warehouses with 100% green electricity (including purchase
of RECs) and added 92 electric cars to our PUMA car fleet. We decreased the air-freight ratio for the
transport of our products to under 0.5% and started using biofuels for the shipping of PUMA products from
Asia to Europe. We decreased our absolute Scope 3 emissions from the category purchased goods and
services by 30% from 2017 to 2023, our core suppliers used 22% of renewable energy and almost 62% of the
polyester used in our products is recycled.
In Human Rights, we made the payment of a fair wage a bonus relevant topic for PUMA's own staff and
continued to track the payment of wages at our core suppliers. For our core supplier Tier 1 factories, the
average payment is 12.7% above minimum wage. 222,933 factory workers received training on sexual
harassment and 83,089 were paid a living wage on average. Our PUMA employees donated 57,000 working
hours to community engagement work and we continued to focus on diversity and inclusion, for example by
increasing the percentage of women on our management board to 50% and by becoming a signatory of UN
Women Empowerment Principles (UNWEPs). Finally, we appointed a Human Rights Officer and worked on a
Human Rights Handbook for our employees to be published in 2024.
In Biodiversity, we continued to partner with the Fashion Pact and Textile Exchange and supported the
publication of a biodiversity landscape report for our industry. To ensure that the leather used for PUMA
products does not contribute to deforestation, we joined the call to action launched by the Leather Working
Group and Textile Exchange to source all bovine leather from deforestation-free supply chains by 2030 or
earlier. Since 2022, almost all tanneries used for PUMA leather products have been certified by the Leather
Working Group. For paper and cardboard, 99.4% are either FSC-certified and/or recycled, to avoid any link to
deforestation.
PUMA Annual Report 2023
↗ Sustainability
34
AWARDS AND RECOGNITIONS
Our sustainability efforts continued to be recognised in several external rankings and recognitions. In 2023,
PUMA maintained its triple-A rating from MSCI, achieved a “good” rating from the critical consumer
labeling organisation “Good on You”, and achieved the highest score in the Platform Financials for Living
Wages benchmark report and Corporate Human Rights Benchmark for our industry, and maintained an A
rating from CDP.
PUMA once again topped the FTSE4Good sector ranking. We received a prime rating from ISS and were
included in the Corporate Knights Global 100 Most Sustainable Companies list for the third year in a row,
leading the textiles and clothing peer group. PUMA also had the highest score among all sports brands in
the S&P Corporate Sustainability Assessment.
At the same time, we continued to receive critical feedback in reports issued by Stand Earth on the use of
biomass as a replacement for coal in our supply chain, the Changing Markets Foundation on the
dependence on oil as a raw material for synthetic fibres and components, Labor Behind the Label on
working conditions in Pakistan, and Clean Clothes Campaign and Action Aid on the wage gap during the
COVID-19 pandemic in Cambodia. We consider these critical remarks as we develop our sustainability
standards, process and strategy.
PUMA Annual Report 2023
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35
PUMA’S FOREVER. BETTER. SUSTAINABILITY
STRATEGY
Sustainability remains an integral part of the strategic priorities for PUMA under the leadership of our CEO
Arne Freundt and our CSO Anne-Laure Descours.
Our FOREVER. BETTER. Sustainability Strategy is based on our 10FOR25 targets, which were introduced in
2019 following an extensive materiality analysis and stakeholder dialogue. In 2023, we updated our
materiality analysis in preparation for our new target cycle until 2030. The results confirm that the areas of
Human Rights, Circularity, and Climate Action (including Biodiversity) were ranked as a high priority.
Until the end of our 10FOR25 targets period, we will still report on the 10 target areas to improve our
sustainability performance: Human Rights, Climate Action, Circularity, Products, Water and Air, Biodiversity,
Plastics and the Oceans, Chemicals, Health & Safety as well as Fair Income.
For each of these target areas, which reference the related United Nations Sustainable Development Goals
(SDG), we have defined a minimum of three concrete targets, as well as key performance indicators to
follow the progress we have made.
With our FOREVER. BETTER. Sustainability Strategy, we continue our path to fully integrate sustainability
into all our core business functions. Sustainability targets are part of the bonus arrangements for every
member of our global leadership team, from the CEO to Team Heads.
PUMA’s Code of Conduct and our vendor compliance programme, which were introduced more than 20
years ago, are still the basis for any contractual relationship with manufacturers globally and remain the
foundation of our responsible sourcing strategy and programme. We revised the Code in 2023 and will
publish the new version in 2024.
PUMA Annual Report 2023
↗ Sustainability
36
SUSTAINABILITY ORGANISATION AND
GOVERNANCE STRUCTURE
PUMA’s sustainability organisation is structured and governed in multiple ways:
• At the Supervisory Board level, with a Sustainability Committee. In 2023, we had several meetings to
discuss the PUMA action plan related to the Corporate Sustainability Reporting Directive (including our
plan to conduct a double materiality assessment in 2023). We had a deep dive discussion into Human
Rights including PUMA work on fair income, responsible purchasing practices, the implementation plan
of the German Supply Act and critical feedback received through NGO reports regarding factories'
working conditions. We also had a deep dive discussion into circularity, including PUMA programmes
and projects update, and into Climate actions including our 2030 decarbonisation pathway plan.
• At the Management Board level, the responsibility for sustainability is assigned to the Chief Sourcing
Officer (CSO).
- There were several Management Board meetings in 2023 with dedicated sustainability updates and
decision on topics like the 2022 sustainability target status and 2023 action plan, PUMA’s action plan
related to the German Supply Chain Act and Corporate Sustainability Reporting Directive (including
our plan to conduct a double materiality assessment in 2023), new minimum wage negotiation
development in Bangladesh and PUMA’s position, circularity programmes and projects status and our
2030 decarbonisation pathway plan.
- PUMA’s CEO, the Chair of the Supervisory Board and the Works Council all participated in our
materiality assessment, which will lay the foundations of our new Sustainability Strategy for 2030.
- Our CSO has a monthly meeting with the Sustainability Leads for corporate and supply chain
sustainability. Topics include Human Rights, Health and Safety, and chemical programmes, as well as
climate and water projects in the supply chain.
• At the Functional Heads level, with an Executive Sustainability Committee.
- The Executive Sustainability Committee comprises of all Functional Heads of the company, such as
the People & Organisation, Sourcing, Finance, IT, Marketing, Risk Management, Investor Relations,
Retail, Logistics and Legal Affairs. The committee met twice in 2023 to provide an update on
sustainability programmes and approved the 2023 Sustainability Bonus Targets.
• At the Product level, with a Cross-Functional Business working group and monthly updates on PUMA’s
more sustainable product strategy and execution.
• At the Subsidiary level with nominated Sustainability Leads for each PUMA subsidiary (quarterly updates
on PUMA Sustainability Strategy and performance, best practice sharing from individual subsidiaries).
• At the Sustainability Experts level, with a corporate sustainability department and a supply chain
sustainability department.
• At the Legal and Compliance level, with a Human Rights Officer. In December 2023, PUMA appointed
PUMA General Counsel Corporate Governance & Compliance as Human Rights Officer. The Human
Rights Officer shall monitor PUMA’s risk management system, risk analysis relating to Human Rights
and compliance with Human Rights due diligence regulations.
• PUMA has a Health and Safety Committee that operates in the headquarters and conducts quarterly
meeting. This committee regularly reviews existing reports on known health and safety risks, conducts
frequent health and safety inspections and exchanges documentation on health issues and risks. The
Global Director People & Organisation, who is part of the Health and Safety Committee, informs the
Management Board of PUMA SE about relevant health and safety matters at least quarterly.
PUMA Annual Report 2023
↗ Sustainability
37
↗ G.01 SUSTAINABILITY ORGANISATION CHART
SUSTAINABILITY PERFORMANCE-RELATED REMUNERATION
At PUMA, we link performance criteria in the remuneration of all leaders globally with clear and defined
sustainability targets. The variable annual performance bonus is based on the achievement of PUMA’s
FOREVER. BETTER. Sustainability Strategy targets.
All PUMA leaders globally, from the CEO to the Team Head level, have clearly defined sustainability targets
as part of their annual performance bonus. These targets are aligned with PUMA's FOREVER. BETTER.
Sustainability Strategy and focus on our 10FOR25 sustainability target areas: Human Rights, Climate Action,
Circularity, and Health and Safety. The targets cover 10% of the overall bonus for members of the
Management Board and 5% for other leaders globally.
↗ G.02 REMUNERATION CRITERIA BY WEIGHT
90%
10%
For management board
95%
5%
For other leaders globally
ESG related indicators
Financial indicators
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↗ T.01 2023 BONUS TARGETS
Area
Percentage
of Bonus Corporate & Subsidiaries Target
Sourcing & Supply Chain Target
Human
Rights
1.25%
(2.5%)
All PUMA employees are paid a living wage;
2 hours community engagement per FTE
No zero tolerance issues prevailing at year
end
180,000 workers training on women
empowerment
Climate
Action
1.25%
(2.5%)
30% of all cars in PUMA's car fleet hit the EU
Taxonomy definition of a low-emission car
(<50 g CO2/km)
Air freight ratio for transport of goods reduced
to under 0.5%
15% renewable energy for core suppliers
Health and
Safety
1.25%
(2.5%)
Zero fatal accidents;
Injury rate below 0.5
80% employees trained
Zero fatal accidents;
Injury rate below 0.5
100,000 workers trained
Circularity
1.25%
(2.5%)
Increase percentage of recycled polyester to
60% for apparel and accessories and 50% for
footwear
Take-back schemes rolled out in one country
each in Americas, Europe and Asia
Increase percentage of recycled polyester to
60% for apparel and accessories and 50% for
footwear
STAKEHOLDER OUTREACH
To ensure that the PUMA Sustainability Strategy covers the most relevant topics, we use a formal
materiality analysis process combined with stakeholder dialogue and outreach.
For our updated materiality assessment, we interviewed several non-profit stakeholders including the
Global Trade Union Federation IndustriAll, Fair Labor Association, Textile Exchange, United Nations
Framework Convention on Climate Change (UNFCCC), and the German Development Organization GIZ.
Our first PUMA stakeholder dialogue dates back to 2003. Since then, we have organised 15 in-person
stakeholder meetings and held one virtually. Our stakeholder dialogue includes representation in and
contribution to several sustainability initiatives. In 2023, we actively participated in several sustainability
initiatives and events, such as conferences by the UNFCCC (Global Stocktake and COP28), ZDHC (Board
Meetings), Textile Exchange Annual Conference, Better Work Global Business Forum, OECD Forum on Due
Diligence in the Garment and Footwear Sector, Better Cotton Initiative Annual Conference and the Global
Fashion Agenda (Global Conference), to name just a few. Our overall investment in partnerships to
accelerate sustainability efforts amounts to over € 1 million. Our next formal PUMA stakeholder dialogue
meeting is planned for April 2024.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively, further details are given in the Due Diligence and Risk Assessment section of this
report.
PUMA has placed a large emphasis on industry collaboration and, where possible, supporting existing
industry initiatives. Collaboration with our peers is paramount to streamlining the sustainability efforts of
our industry. We believe that encouraging the alignment of individual industry organisations, e.g.,
converging the use of tools and processes, makes the overall system more efficient.
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↗ G.03 MATRIX OF KEY PARTNERSHIP INITIATIVES
CONFERENCE OF THE PEOPLE AND VOICES OF A RE:GENERATION
In 2022, PUMA held the Conference of the People, a first-of-its-kind event for PUMA. Industry peers,
activists, NGOs, experts, ambassadors, and consumers came together to discuss solutions for some of the
fashion industry’s pressing sustainability challenges. With a special focus on Gen-Z, the conference
highlighted the need for brands to improve transparency and communication more regarding sustainability.
Following this event, in April 2023 PUMA launched its year-long Voices of a RE:GENERATION initiative,
empowering a group of Young Voices to help PUMA identify key areas for improvement and giving them a
seat at the table alongside leading stakeholders.
Through various projects, the Voices are educating, engaging and co-creating with PUMA to help improve
how PUMA communicates about sustainability in a way that resonates with the next generation, bringing
new perspectives and challenging PUMA to think differently. In September 2023, PUMA expanded the reach
of the initiative beyond Europe and the USA by adding Indian sustainable fashion advocate Aishwarya
Sharma. Aishwarya joined PUMA’s current Voices, the USA-based upcycler Andrew Burgess, Germany-
based sustainable and healthy living vlogger Luke Jaque-Rodney and France-based visual artist and
creative consultant Jade Roche.
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Voices of a RE:GENERATION: Aishwarya Sharma, Andrew Burgess, Jade Roche, Luke Jaque-Rodney (from left to right)
To date, the Voices have met several times with key players at PUMA to discuss the brand’s progress and
challenges surrounding its FOREVER. BETTER. Sustainability Strategy and produced PUMA RE:GEN
Reports, a podcast series created to engage and better communicate with the younger generation on
PUMA’s FOREVER. BETTER. 10FOR25 target areas.
Since then, the Voices have also partnered with PUMA to produce RE:HACKS (a social content series
sharing tips with consumers on how to care for and extend the lifespan of clothing and kicks) and
participated in the PUMA 2023 sustainability materiality assessment, giving input into what will shape
PUMA’s 2030 sustainability action plans.
In October 2023, three of the Voices visited some of PUMA’s manufacturing partners in Bangladesh,
Vietnam, and Turkey to get their impressions of PUMA’s supply chain and experience the realities, progress
and challenges of sustainability at scale on the ground. Their learnings will be shared through their social
channels in 2024. Building on these efforts and progress, PUMA will continue the RE:GENERATION initiative
into 2024.
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Voices of a RE:GENERATION visiting factories in Bangladesh, Turkey and Vietnam
PUBLIC POLICY ADVOCACY ENGAGEMENT
PUMA does not lobby as a separate entity. However, as part of our membership in industry federations and
expert organisations like the Federation of the European Sporting Goods Industry (FESI) or the Policy Hub,
our experts provide feedback on policy positions to those organisations and attend meetings with policy
makers from time to time. We ensure that our feedback provided is aligned with our Sustainability Strategy
and targets, such as limiting global warming to 1.5 degrees. In 2023, PUMA joined the Fashion Industry
Charter for Climate Action (UNFCCC) policy dialogue event in Bangladesh. Membership fees paid by PUMA
to the organisations involved in policy outreach are below € 300,000 per year in total.
Organisations engaged in public policy outreach in which PUMA is a member:
• Policy Hub
• World Federation of the Sporting Goods Industry (WFSGI)
• Federation of the European Sporting Goods Industry (FESI)
• Bundesverband der Sportartikelindustrie (BSI)
• Fashion Industry Charter for Climate Action (UNFCCC)
• Stifung Klimawirtschaft
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MOST MATERIAL ASPECTS
PUMA performed a formal materiality analysis in 2018 – 2019 with the help of expert consultancy BSR. The
methodology, list of consulted stakeholders, and results were reviewed and approved by PUMA’s Managing
Directors. Materiality assessment results are also considered in the risk management process. Our risk
management function assesses our most material topics and the risks related to those topics in
collaboration with the risk owners. The 2019 materiality assessment formed the basis for our existing PUMA
FOREVER. BETTER. Sustainability Strategy and 10FOR25 targets, as well as the structure of this 2023 report,
and is outlined in the graph below. Further details on the methodology can be found in PUMA’s 2022 Annual
Report.
↗ G.04 PUMA’S MOST MATERIAL ASPECTS (2018 – 2023)
DOUBLE MATERIALITY ANALYSIS – 2024 AND BEYOND
In 2023, PUMA conducted an updated materiality analysis based on the principle of double materiality as
requested by the Corporate Sustainability Reporting Directive (CSRD). The methodology, list of consulted
stakeholders, and results were reviewed and approved by PUMA’s Managing Directors (CEO, Chief Financial
Officer, Chief Product Officer and Chief Sourcing Officer). PUMA’s CEO, the Chair of the Supervisory Board,
and a Workers Council representative participated in the materiality assessment.
The 2023 materiality assessment was conducted by the expert consultancy Radley Yeldar and included:
• A horizon scanning stage, including peer benchmark assessment, legislation, sustainability frameworks
and ratings, and media screening
• Development of CSRD-compliant impact assessment criteria
• Stakeholders interviews with 32 participants, including 16 PUMA and 16 external stakeholders as well as
an online survey (37 responses)
• Out of the interviews, eight in-depth interviews for financial impact were conducted, including investor
and lender views
• Results validation meetings between PUMA’s Sustainability Team and Radley Yeldar
• Managing Directors‘ approval
A total of 25 sustainability topics were selected after the horizon scanning stage to be evaluated by
stakeholders. Seven topics were identified by our stakeholders as being financially material to PUMA.
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Social topics
• Forced and Child Labor in the supply chain
• Gender Equity in the supply chain
• Worker Wages in the supply chain
• Labor Conditions in the supply chain
• Employee engagement and development of own workforce
Other topics
• Circular Design and Production
• Supply Chain Traceability and Management
Seven topics were assessed to have a significant outward impact.
Social topics
• Worker Wages in the supply chain
• Labor Conditions in the supply chain
• Diversity, Equity, and Inclusion of own workforce
• Employee Engagement and Development of own workforce
Environmental topics
• Water Use in the supply chain
• Biodiversity, Land Use and Deforestation in the supply chain
• Climate Actions in the value chain
Notably, Labor Conditions, Worker Wages, and Employee Engagement and Development passed both the
financial and outward impact threshold for materiality. All eleven topics, targets and achievements,
identified as material (from a financial and outward impact perspective) are already included in this report.
Going forward, we will transition from our 10FOR25 targets toward our 2030 strategy, which will be based on
the new materiality assessment and the outcome of our stakeholder dialogue in 2024.
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↗ G.05 PUMA’S DOUBLE MATERIALITY MATRIX
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45
↗ G.06 PUMA’S 2025 SUSTAINABILITY TARGETS
*
SDG: United Nations Sustainable Development Goals
Human Rights
(SDG 3, 5, 8 and 10*)
Health and Safety
(SDG 3*)
Chemicals
(SDG 3 and 6*)
Water and Air
(SDG 6, 14 and 15*)
Biodiversity
(SDG 14 and 15*)
Climate
(SDG 7 and 13*)
Fair Income
(SDG 1, 2 and 10*)
Circularity
(SDG 9, 12, 14 and 15*)
Products
(SDG 12*)
Plastics and the Oceans
(SDG 3, 14 and 15*)
PUMA
SUSTAINABILITY
TARGETS
2025
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↗ T.02 PUMA 10FOR25 SUSTAINABILITY TARGETS PERFORMANCE SUMMARY
1
Not started
In progress
On track
Achieved
Target area
Targets for 2025
Performance 2023
Status
Target 1: Train 100,000 direct and indirect
staff members on women’s empowerment
222,933 factory workers and 3,727 PUMA
employees trained
01
Target 2: Map subcontractors and Tier 2
suppliers for Human Rights risks
Tier 1 subcontractors mapped
Tier 2 mapping completed (since 2022)
Human
Rights
Target 3: 25,000 hours of global community
engagement per year
57,000 hours
Target 1: Zero fatal accidents (PUMA and
suppliers)
Zero fatal accidents at PUMA
1 fatal accident at suppliers
02
Target 2: Reduce accident rate to 0.5 (PUMA
and suppliers)
0.46 at PUMA
0.2 injury rate at PUMA suppliers
Health and
Safety
Target 3: Building safety policy operational
in all high-risk countries
ACCORD Bangladesh: Progress rate 94%
Signed ACCORD Pakistan
Building safety assessments in 35
factories in Indonesia, India, Bangladesh
and Pakistan
Target 1: Ensure 100% of PUMA products
are safe to use
No product recall from the market
03
Target 2: Maintain RSL compliance rate
above 90%*
6,130 tests with RSL compliance rate at
98.7%
Chemicals
Target 3: Reduce organic solvent usage to
under 10 gr/pair
VOC index at 12.5 g/pair
Target 1: 90% compliance with ZDHC
Wastewater Guidelines
Conventional parameters: 99%
Restricted chemicals: 98%
Heavy metals: 99%
04
Target 2: 90% compliance with ZDHC Air
Emissions Guidelines
Our core Tier 1 and Tier 2 follow local
regulation
Joined ZDHC pilot
*
Water and
Air
Target 3: 15% water reduction per pair or
piece based on 2020 baseline
Textile: -4.9% per ton
Leather: +11.7% per square meter
Apparel: +9.4% per piece
Footwear: -21.5% per pair
Target 1: Align PUMA’s climate target with
1.5 degrees global warming scenario
SBTi approved our new 1.5 degree aligned
target for absolute GHG emission
reduction: Scope 1 and 2 by 90%, Scope 3
by 33% in 2030. Our first 2019 SBT
achieved in 2023.
05
Target 2: 100% renewable electricity for
PUMA entities
100% renewable electricity used for PUMA
entities (including RECs purchase)
Climate
Target 3: 25% renewable energy for core
suppliers
23.1% for Tier 1 (finished goods)
21.7% for Tier 2 (materials)
(including RECs purchase)
*
ZDHC air emission guidelines have not been yet released at the end of 2023. We have participated in a pilot in
collaboration with ZDHC to test the draft standards.
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Target 1: Eliminate plastic bags from owned
and operated PUMA stores
As of 1 January 2023, plastic bags are no
longer used in PUMA’s owned and
operated stores
06
Target 2: Support scientific research on
microfibres
Signed 2030 commitment of microfiber
consortium, 12 shedding tests conducted
Plastics and
the Oceans
Target 3: Research biodegradable plastics
options for products
RE:SUEDE experiment as a test for
biodegradability completed and results
publicly shared
Target 1: Establish take-back schemes in all
major markets
Take-back schemes established in at least
one country in each of Americas (the USA),
Europe (Switzerland) and Asia (Australia)
07
Target 2: Reduce production waste to
landfills by at least 50% compared to 2020
64.7% reduction of waste to landfill per
footwear pair
87.4% reduction of waste to landfill per
apparel piece
Circularity
Target 3: Develop recycled material options
for cotton, leather and rubber
Recycled cotton used at scale
Recycled rubber and reconstituted leather
used in selected collections
Target 1: Procure 100% cotton, polyester,
leather and down from certified sources
99.2% cotton
85% polyester
99.7% leather
100% down
08
Target 2: Increase recycled polyester use to
75% (apparel & accessories)
64.9% recycled polyester used for apparel
and accessories
Products
Target 3: 90% of apparel and accessories
classified as more sustainable
90% of all footwear contains at least one
more sustainable component
87% apparel volume
40% accessories volume
93% footwear volume
Target 1: Fair wage assessments for the top
five sourcing countries
Five out of five assessments completed
(Bangladesh, Cambodia, Indonesia,
Vietnam, China)
09
Target 2: Effective and democratically
elected worker representatives at all core
suppliers
66% core Tier 1 factories have elected
worker representatives
Fair Income
Target 3: Ensure bank transfer payments
for all core suppliers
100% core Tier 1 and Tier 2 suppliers use
digital payment
100% of workers are paid digitally in core
factories
Target 1: Support setting up a biodiversity SBT Sponsored a biodiversity landscape
analysis report with Textile Exchange and
Fashion Pact
10
Target 2: Procure 100% cotton, leather, and
viscose from certified sources
99.2% cotton
99.7% leather
84% viscose
Biodiversity
Target 3: Zero use of exotic skins or hides
Phased out the usage of kangaroo leather
during 2023
No exotic skins or hides in use
1
REC: Renewable Energy Attribute Certificates, RSL: Restricted Substances List, SBT: Science-Based Target, SLCP: Social
and Labor Convergence Programme, Tier 1 (T1) suppliers: Supplier of finished goods, Tier 2 (T2) supplier: Supplier of
materials or components, Tier 3 (T3) supplier: Supplier of yarn, hides, etc., VOC: Volatile Organic Compound, ZDHC: Zero
Discharge of Hazardous Chemicals
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SCOPE OF THE REPORT
DATA COLLECTION
In the Sustainability report, we cover the PUMA Group data, excluding PUMA United. We collect data from
our core suppliers of components, materials, and finished products. Our materials data excludes the
materials used by stichd (mainly socks and bodywear) and PUMA United, as well as the materials used for
Cobra Golf equipment, as these companies run their own sourcing. For social compliance data, PUMA
United, stichd, and Cobra Golf factories producing PUMA products are included. For environmental data, we
also report stichd own sites and factories according to PUMA’s Environmental Performance Rating System.
We do not provide separate reports for PUMA SE and the Group in the Sustainability section.
DATA SOURCES
To ensure a high level of transparency and promote the sharing of environmental and social data with our
industry peers, we have chosen to use external databases, most of which are publicly accessible:
• The Open Supply Hub, an open-source map and database of global apparel facilities
• The Fair Factories Clearinghouse for sharing social audit data with other brands
• The wastewater platform of the Zero Discharge of Hazardous Chemicals Foundation (ZDHC) for supplier
data on wastewater testing reports (ClearStream reports)
• The ZDHC Chemicals Gateway for the use of safe chemicals
• ZDHC-approved chemical inventory platforms: BHive, CleanChain, E3
• RSL database Green Arrow
• The China-based NGO IPE for the publication of suppliers’ environmental data
• IPE’s Green Supply Chain Map of environmental performance data of some of our core suppliers in
China
• The Higg Index Platform Worldy
• The Fair Labor Association (FLA) fair compensation dashboard to benchmark factory workers’ income
towards industry and/or living wage benchmark
• The Fair Wage Network database
• ACCORD Bangladesh inspections database: The Bangladesh Accord on Fire and Building Safety in
Bangladesh
• Worker Complaints – third-party platforms: MicroBenefits CIQ, Labor Solution - WOVO, Amader Kotha
We also use our own sustainability data collection tool to record social and environmental performance data
from PUMA-owned and operated sites and from the core suppliers that manufacture our products or the
material used in our products.
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DUE DILIGENCE AND RISK ASSESSMENT
PUMA conducts regular and industry-specific due diligence on human rights and labour, environmental, and
integrity risks (listed in T.03) for its own activities and across its supply chain as per the recommendations of
the UN Guiding Principles for Business and Human Rights, OECD Due Diligence Guidance for Responsible
Supply Chains in the Garment and Footwear Sector, and other relevant responsible business conduct
standards, such as the German Supply Chain Act. We embed responsible business conduct in our policies,
training, and management systems and identify actual and potential harms in our own operations and
supply chain.
↗ T.03 HUMAN RIGHTS & LABOUR, ENVIRONMENTAL AND INTEGRITY RISKS
Human Rights & Labour Risks
Environmental Risks
Integrity Risks
Child labor
Greenhouse gas (GHG) emissions
Bribery and corruption
Discrimination
Hazardous chemicals
Forced labor
Water scarcity
Occupational health and safety (e.g.,
worker-related injury and ill health)
Water pollution
Violations of the right of workers to
establish or join a trade union and to
bargain collectively
Landuse change
Non-compliance with minimum wage
laws
Waste
Wages do not meet basic needs of
workers and their families
Air emissions
Due diligence is an ongoing process, to identify, mitigate, and prevent risks and address their existing and
potential adverse impacts (e.g. child labour, discrimination, hazardous chemicals, etc.).
As stated in the “Corporate Governance Statement”, PUMA has a functioning Compliance Management
System (CMS) to systematically prevent, detect and sanction violations in the areas of corruption, money
laundering, conflicts of interest, antitrust law and fraud/embezzlement.
In response to the possibility of future crises and/or upcoming regulations, our vendors are recommended
to conduct their own due diligence. PUMA’s process of assessing the risk of potential harm to people
(human rights and labour and environmental risks) includes:
• External sources: NGO reports, media, country indices and country regulation, PUMA partnerships with
Fair Labor Association, Better Work, Fashion Charter, ZDHC, AFIRM, etc.
• Internal sources: PUMA social, chemical and environmental audit findings/data analysis, grievances
received per country, supply chain risk mapping, number of factories in countries with high risk, per
commodity, also including non-core factories, material processing and raw material extraction.
We prioritize risks based on:
• Severity: Scale (how serious the impact is), scope (how many people are or will be affected) and
irremediability
• The likelihood of risk occurring based on the operating environment: Conflict zone, weak governance;
mismatch between local practices and international standards
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Our mitigation measures include the factory monitoring programme, grievance mechanism, supplier
scorecard, business integration, goal-setting and internal and external reporting. The effectiveness of our
measures is evaluated based on progress and compliance with our policies.
PUMA’s policies are published on our website, as well as our factory monitoring programmes and
standards defined in our Social, Environmental, Occupational Health and Safety and Chemical Handbooks.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy, following Fair Labor
Association guidelines and approval. It formalizes PUMA’s commitment to engage with CSOs reactively and
proactively for information sharing (to understand concerns and to increase transparency about PUMA’s
works, challenges and progress) and for consultation purposes (to make informed sourcing decisions to not
impact people's rights) which can lead to collaboration to address a specific challenge or remediate an
issue.
It also defines the criteria below to plan the form and frequency of engagement:
• High-risk and high-production volume countries
• Severity and the likelihood of violations or risks
• Knowledge gaps regarding new or upcoming risks identified through a supply chain risk assessment
• Persistent issues identified through factory monitoring programme or risk assessment
• Concerns raised through PUMA grievance mechanisms and third-party reports
Proactive engagement with CSOs aims to develop and review our sustainability-related goals, policies and
standards, assess risks or get input for our double materiality assessment, develop remediation plans and
improve access to remedy, inform about PUMA’s sustainability performance and open issues and evaluate
the effectiveness of our due diligence processes, sustainability programmes and grievance mechanism.
Reactive engagement takes place when a concern is raised to PUMA. PUMA and PUMA’s suppliers offer
different grievance channels to any worker as well as third parties, including CSOs, to raise their concerns
regarding human rights, environmental protection and violations of PUMA’s policies: such concerns can be
raised through workers’ voice platforms, the PUMA hotline and Fair Labor Association third party
complaints.
PUMA also adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by geography, commodity and issue
• Complete a risk assessment for suppliers, factories and sites
• Manage risks that are material for each supplier, factory or site
Our 10FOR25 targets are linked directly to the four main sustainability-related risks identified in our due
diligence process:
• Potential human rights violations or incidents in our supply chain (Tier 1 and core Tier 2*)
• Potential incidents of environmental pollution in our supply chain (Tier 1 or core Tier 2)
• Potential non-compliance with chemical regulations during production (Tier 1 or core Tier 2)
• Negative effects of climate change (transition risks and physical risks)
The four main sustainability-related risks are reflected in the Risk Management System that PUMA has
established to identify and manage material risks or risks that could pose a threat to the company’s
objectives at an early stage. The Risk Management function conducts formal interviews with selected risk
owners (key function management responsible for identifying and addressing the risks) on a semi-annual
basis set to identify, evaluate, and report risks. The risk owners of PUMA’s Sustainability Department review
risks within their area of responsibility and report on the measures implemented to mitigate or reduce the
potential impact of sustainability-related risks to the Risk Management function.
* Tier 1 manufacturers of PUMA products; Tier 2 manufacturers of materials and components
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To mitigate and prevent sustainability risks, PUMA has set the 10FOR25 targets and implemented a due
diligence process. PUMA reports internally and publicly (through annual sustainability reports) on the
following activities and progress toward our 10FOR25 targets:
• Conducting regular complete and follow-up social audits based on International Labor Organization
standards (including reaudits and capacity building projects) for all Tier 1 and core Tier 2 suppliers.
• Monitoring performance with factory environmental management system via Higg Index Facility
Environmental Module (FEM), regular RSL (Restricted Substances List) testing of materials and
products, input chemistry control via Manufacturing Restricted Substances List (MRSL) by ZDHC, output
control via wastewater tests by independent and accredited laboratories.
• Following the status of new regulations via industry associations such as the Federation of the European
Sporting Goods Industry (FESI), or the Policy Hub, and other key partners. A matrix listing PUMA's key
partnership initiatives is maintained to track all relevant international and national sustainability
organisations, and follow up on legal requirements (e.g. UK Modern Slavery Act, new German Supply
Chain Due Diligence Act) in a timely manner.
• Implementation of an approval procedure for sustainability related product claims.
• Conducting stakeholder dialogue with NGOs and other expert organisations.
• Regular updates of PUMA policies and sustainability standards (e.g. Code of Conduct, sustainability
handbooks).
• Establishing of a functioning workers’ hotline (included in Code of Conduct) and employees’ hotline
(included in Code of Ethics).
• Enhanced industry-wide collaboration with competitors in terms of human rights and environmental
performance measurement tools, standards and certifications (e.g. Facility Environmental Module,
Social Labour Convergence Programme, Material Restricted Substances List, Leather Working Group,
Forest Stewardship Council).
• Regular internal training (for example e-learning accessible via Workday).
Net risks as outlined in the CSR Directive Implementation Act (§ 315c in relation to § 289c, section 3, number
3 German Commercial Code (HGB)), were not identified in 2023.
Further details on PUMA’s overall risk management can be found in the Risk Management section.
In 2023, as part of PUMA’s continuous review of Due Diligence policies and processes, we revised our Code
of Conduct and will publish it in 2024. We will also revise PUMA FOREVER. BETTER. Sustainability
Handbooks in 2024.
The scope of the implementation of the Code, Policies and Handbooks has been expanded, mentioning all
PUMA’s business partners within and beyond the supply chain, including business partners who represent
PUMA (such as consultants and agents), and PUMA’s own organisation.
The updates of the Code of Conduct include clarifying definitions regarding the worst forms of child labour
and the prohibition of slavery. Provisions were added regarding supply chain traceability, the use of security
forces without violating any Human Rights, provision on chemical and waste management in line with
International Conventions, as well as unlawful eviction and taking of land. We also emphasize PUMA’s
commitment to remediation of violations and similar expectations from our business partners; we also
added how workers can use PUMA hotline for any grievance.
Two new standards were added to the Code of Conduct:
• No harm when using security forces
• Respect of land rights
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To ensure that our suppliers understand the requirements set by PUMA as well as international Due
Diligence regulation and standards in the garment and footwear industry, PUMA organised multiple training
sessions in 2023 including:
• Meetings with suppliers to share updates on PUMA standards and industry best practices, elaborate on
the German Due Diligence Supply Chain Act by industry experts; CNTAC in China and VITAS in Vietnam.
• Training on Accident Prevention and Reporting with factory management, who will support us in
achieving the goal of training 100,000 workers in this area.
• Root cause analysis training for strategic suppliers.
• Customised e-learning on Social Standards, to support existing and new suppliers with understanding
PUMA's expectations.
• PUMA expectations for suppliers regarding our Code of Ethics.
Fashion Revolution works towards a vision of a fashion industry that conserves and
restores the environment and values people over growth and profit. The Fashion
Transparency Index is an annual review of 250 fashion brands and retailers ranked
according to their level of public disclosure on human rights and environmental policies,
practices and impacts in their own operations and in their supply chains.
PUMA ranks sixth out of the 250 fashion brands and retailers, our index improved from 58% in 2022 to 66%
in 2023, because of our increased public disclosure on social and environmental policies, practices and
impacts.
The Corporate Human Rights Benchmark ranks 110 of the world’s largest apparel and
extractives companies on their corporate human rights performance.
PUMA ranks fourth out of 110 companies and first in the Apparel sector of the World
Benchmarking Alliance 2023 Corporate Human Rights Benchmark, with a total score 53.4 of out of 100. We
have embedded our policy commitments to respect human rights within our operations by allocating
responsibility and resources for the day-to-day management of human rights, providing training on human
rights issues, and establishing a global due diligence system to assess, mitigate and evaluate human rights
risks and impacts.
KnowTheChain benchmarks how companies address forced labor in corporate
global supply chains to inform companies’ and investors’ decision-making and
enable companies to operate more transparent and responsible supply chains.
PUMA ranks second out of 65 companies in KnowTheChain 2023 Apparel & Footwear Benchmark. Compared
to 2021, we improved our rank by six places. This is because we disclose the percentage of migrant workers
at Tier 1 and core Tier 2 suppliers, recruitment fee remediation across four countries and responsible
recruitment training for suppliers. We also increased information disclosure on our human rights risk
assessment process. Notably, PUMA has the highest score on the theme of Traceability & Risk Assessment.
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HUMAN RIGHTS
TARGET DESCRIPTION:
• Train 100,000 direct and indirect staff on women’s empowerment
• Map subcontractors and Tier 2 suppliers
• Two hours of community engagement per FTE globally per year
Relates to United Nations Sustainable Development Goals 3, 5, 8 and 10
KPIs:
• Percentage of worker complaints resolved
• Number of factories with an A, B+, B-, C or D grade
• Number of Tier 2 suppliers and subcontractors included in our risk mapping
• Number of zero-tolerance issues prevailing at year end
• Number of employee hours spent on community engagement (KPI shared with Human Resources)
• Number of workers trained on women’s empowerment
PUMA’s sustainability policies are aligned with the United Nations’ (UN) Declaration of Human Rights, the
UN Guiding Principles (UNGPs) on Business and Human Rights, the International Labor Organization’s Core
Labor Conventions, and the ten principles of the UN Global Compact (UNGC). Observing Human Rights was
part of our first Code of Conduct developed in 1993 and has guided our business ethics ever since. It has
been the long-standing practice of PUMA to monitor our supply chain and conduct Human Rights due
diligence for our suppliers globally, including those in major production hubs, such as Vietnam, Bangladesh
and China continuously and rigorously.
HUMAN RIGHTS AT PUMA'S OWN ENTITIES
Guided by our Code of Ethics and Code of Conduct, PUMA’s company culture of diversity and inclusion puts
Human Rights at the centre of everything we do. Our commitment to employee well-being is also
documented in numerous employee awards and top-employer rankings received all over the world.
Our internal programmes to uphold Human Rights include measuring gender, nationality, and age distri-
bution among our colleagues, providing a safe work environment as well as elected worker representatives
and collective bargaining agreements at selected larger offices, such as our German headquarters. In
December 2023, PUMA appointed a Human Rights Officer to monitor PUMA’s risk management system, risk
analysis relating to human rights and compliance with Human Rights due diligence regulations. In addition,
we worked on a Human Rights Handbook for our own entities globally, to be published in 2024.
All PUMA employees who feel that ethical standards in business may have been compromised can raise
their voices. Various channels are in place to report any suspicions and/or observations related to modern
slavery or other Human Rights aspects. In practice, all employees can address their requests regarding
apparent failures to their line manager. They may also raise the matter with staff representatives, the Legal
department, the Internal Audit department, or via a toll-free external whistleblower platform available
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worldwide. Our Ethics Committees make sure that no action is taken against an employee who, in all good
faith, reports a case of failure to comply with an ethical principle of the Code of Ethics, because of having
reported the matter. In 2023, to meet its obligations under the German Act on Corporate Due Diligence
Obligations in Supply Chains (LkSG), PUMA published its Rules for the Complaint Procedure.
REFORM INITIATIVE
As REFORM continues through its fifth year of existence, our partnership with The Trevor Project (TTP)
continues to drive impact in our communities with a focus on supporting policies and practices that affirm
and protect young LGBTQ athletes. In 2021, in partnership with TTP, we sought to build a well-researched
and comprehensive training scheme to support equity in sports and promote gender inclusivity. In 2023, we
launched the Reform the Locker Room programme, furthering our reach to locker rooms, classrooms, and
offices alike.
REFORM was also able to launch a new project and collection, called Icons of Unity. Icons of Unity honors
PUMA ambassador and global Icon, Tommie Smith, and amplifies his message of Justice, Dignity, Equality
and Peace. As we continue to build out this programme, we look forward to identifying athletes, colleagues,
and community leaders who embody this characteristic of Tommie, being more than what is obvious and a
beacon for a more united community. We kicked this off with an amazing interview with Tommie and
Olympians, Felix Streng and Colin Jackson.
In 2023, we educated and preserved culture and history through our work with BLACK FIVES and its NY
RENS 100 collection launched in November with court refurbishments and street dedications. We have been
able to advocate for and amplify a message of rebuilding communities in conjunction with our partner Game
of Our Lives and football star and PUMA ambassador Oleksandr Zinchenko and his Game4Ukraine
charitable celebrity soccer match that raised large amounts of money to support the rebuilding of Ukrainian
schools. We supported the match with game balls and training gear for all participants. We also hosted a
match viewing event at our Herzo HQ with many of the Ukrainian families that have been relocated during
the time of war.
REFORM continues to show up and show out for our broader communities and remains true to our brand
vision; “…where all barriers to participation are removed so that everyone who wants to play can play.”
More on our Reform Initiative can be found here.
PUMA x BLACK FIVES collection which honours the 100th anniversary of the Harlem Rens
A panel discussion on Gidra, an Asian-American student-led newspaper created to stop the anti-Asian sentiment in 1969
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COMMUNITY ENGAGEMENT
Our goal is to reach a total number of hours spent on community engagement equal to twice our annual
average FTE (full-time equivalent). We encourage all our employees around the world to participate and
record projects and employee engagement on an online platform.
Our Community Engagement Programme has continued to create a positive impact locally by supporting
social, health and environmental causes, and we were able to donate 57,000 community hours in 2023. Since
2017, we have now recorded over 200,000 community engagement hours globally.
For more information on PUMA's employee policies and philanthropic donations please refer to the Our
People section.
Community engagement activities from PUMA Chile: Reforestation in Renca
HUMAN RIGHTS IN THE SUPPLY CHAIN
RESPONSIBLE PURCHASING PRACTICE POLICY
As a responsible business partner for our suppliers, we recognise that our business practices, and our
trading terms and conditions can have a significant impact on the organisation at our suppliers’ factories.
PUMA’s Responsible Sourcing Policy aims to reduce potential negative impacts. PUMA’s Responsible
Purchasing Practice Policy was developed in 2019 to create a framework for guiding decisions and
maintaining consistency through eight key principles:
1. Only working with suppliers that have signed a Manufacturing Agreement.
2. Payments to suppliers are made on time and in full. We only deduct payments and impose penalties
when it is lawful to do so.
3. Price paid for the product to include reasonable labour costs, such as overtime premium payments,
social insurance payments, and costs to comply with environmental standards.
4. Open production capacity must be declared by the supplier based on standard work weeks as per the
law of the relevant production country.
5. Seasonal production plans are allocated considering the negotiated capacity with the supplier.
6. Sufficient production lead time must be provided.
7. Suppliers may not subcontract production without authorisation from PUMA. All subcontracting units
should respect our Code of Conduct.
8. A minimum notice of six months must be given when ending a partnership or downscaling orders.
Longer timeframes will be granted, based on the average production capacities used in the last two to
three years, to reduce the impact on workers.
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In 2022, 280 PUMA staff and 1,145 supplier participants received Responsible Sourcing Practice training. The
training referred to the UN Guiding Principles on Business and Human Rights, to explain the link between
the purchasing practices, potential impact on working conditions, and the risk of Human Rights violations.
In 2023, as part of our Due Diligence Policy review, we added a clause on responsible disengagement into
our responsible purchasing practices. Following the Fair Labor Association guidelines, PUMA commits to
provide a minimum of six months of notice when significantly downscaling orders or terminating a business
relationship with suppliers. To mitigate impact on workers’ jobs and give suppliers time to find new buyers,
a longer timeframe shall be granted, depending on the average production capacities used over the last two
to three years.
BETTER BUYING SURVEY
In 2023 we asked 32 strategic Tier 1 suppliers (11 accessories, 12 apparel, and nine footwear suppliers
representing 69% of our business volume and 80% of our business value) to participate in the Better Buying
survey to collect feedback from our core suppliers on the implementation status of PUMA’s responsible
purchasing practices. 28 suppliers responded, and the response rate was 90.3%.
Better Buying gathers data from suppliers to provide guidance to brands for improving purchasing
practices. Brands voluntarily invite their suppliers to participate. Suppliers rate their brands anonymously
according to the five principles of responsible purchasing which focus on the buyer purchasing practices
that could have the biggest impact on suppliers’ businesses:
1. Visibility: Brands provide enough information about the planned business for suppliers to act
2. Stability: Brands give suppliers steady and predictable business across the year
3. Time: Brands provide enough time for suppliers to complete all processes
4. Financials: Brands use fair financial practices with suppliers
5. Shared Responsibility: Brands play their part in improving supply chain social and environmental
sustainability
We benchmarked our 28 suppliers' feedback with more than 800 suppliers' feedback from the 16 brands
classified under sporting goods and discussed these results internally to set a clear focus area for
improvement. PUMA’s overall score slightly increased in 2023, mainly due to the increased score on
covering cost for compliant production, accountability for delays, regular forecast updates, and order
cancellation percentage. The feedback is described below.
VISIBILITY
Design and development can play a significant role in improving supply chain sustainability. Choices made at
this stage have significantly lower financial, social, and environmental impacts. While all our samples are
based on a tech pack, tech packs have also been reviewed in 2023 to improve the accuracy of information.
PUMA has also provided internal training on the importance of providing accurate information to suppliers.
Our purchase order accuracy has improved compared to 2022. Our suppliers recognise our efforts in
increasing the use of more sustainable materials, 3D sampling, industry certification, and setting target
prices before product development. Our sample hit rate remains strong.
All our suppliers confirmed that we provide them with a business forecast, enabling them to plan the
workforce that is needed. In 2023, PUMA discussed its production capacity and the potential impact of
forecast inaccuracies on suppliers. We also provided internal training for key business departments
involved. PUMA has also been working with its suppliers to ensure their production capacity is accurate and
there has been regular feedback on sales forecast to its sales division. Although the overall score has
improved for 2023, we have identified the need to better communicate our overall forecasting and planning
timelines and processes to our suppliers and improve in-season communication for some product divisions.
Given the global macroeconomic situation in 2023, which has led to a change in customers' ordering
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behaviour, the gap between the placed and planned capacity results in unutilised capacity and excess
material increased according to our suppliers.
STABILITY
We value long term relationships with our suppliers. 40% of our suppliers have been working with PUMA for
more than ten years. To help ensure stability, as a principle, we will not cancel orders and accommodate
order placement to respond to suppliers’ difficulties such as lockdown periods. In the case of order
cancellation which remains less than 1% for PUMA, we always pay our suppliers for any liability associated
with cancellations. In 2023, 100% of suppliers from Accessories and Footwear reported no order
cancellation, while some Apparel suppliers reported cancelled orders.
TIME
A large majority of our suppliers confirmed that we have an agreed time and action calendar for pre-
production and production deadlines. In 2022 we received feedback from our suppliers that PUMA missed
some deadlines, however through better communication in 2023, our suppliers confirmed an improvement.
FINANCIAL
Most suppliers feel they have favourable financial terms through digital payment, the FOREVER. BETTER.
Vendor Financing Programme and through receiving payment for samples and bulk production in a timely
manner. PUMA International Trading and the vendors have enabled the digitisation of the supply chain
creating transparency, operational efficiency, and reducing complexity. For example, all payments to
vendors are automated and paper-free.
We do not apply late penalties to our vendors, and suppliers confirmed we are flexible and accountable for
delays. We will strengthen our communication of payment terms to suppliers. We also see opportunities to
collaborate with our suppliers to increase their production efficiency related to style allocation, volume,
standardisation of fabrics, labelling and packaging processes, etc. We made significant improvements in
covering costs for compliant production compared to 2022, but suppliers also reported pressure in cost
negotiation in 2023. Our suppliers also recognised our efforts to reduce audit duplication which benefits
them in saving cost.
SHARED RESPONSIBILITY
All our suppliers recognise that sustainability is the precondition for doing business with PUMA. However, in
2023, suppliers felt less incentivised to reach the sustainability goals compared to 2022 since we saw a
decline in orders in the first half of the year and stabilisation during the second half. The majority of our
suppliers acknowledge our effort to enforce our sustainability standards.
FOREVER. BETTER. VENDOR FINANCING PROGRAMME
The programme, established in 2016, allows suppliers with a good or very good compliance rating to benefit
from PUMA’s high credit rating and preferred interest rates. The programme runs in partnership with IFC,
BNP Paribas, HSBC, and Standard Chartered Bank.
At the end of 2023, 72 vendors were registered users (compared to 71 at the end of 2022). The financed
volumes in the full year 2023 amounted to $ 478 million (-$ 322 million compared to 2022), which reflects the
massive interest rate and with this financing cost increases for our suppliers, who chose other sources or
tried to avoid external financing.
HUMAN RIGHTS RISK ASSESSMENT
In previous years we have conducted Human Rights risk assessments at corporate and the supply chain
level and shared the results in our 2016 and 2017 Annual Reports. In 2021 we commissioned and completed a
Human Rights risk assessment, focusing on forced labour management in the supply chain.
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In our Handbooks, we request our vendors to conduct due diligence. To increase transparency, we report on
the most common audit findings, training, grievances, and mitigation measures as outcome-focused key
performance indicators (KPIs) to track the effectiveness of our supplier programmes.
The PUMA hotline is accessible to Civil Society Organisations (CSOs) and external stakeholders, including
stakeholders representing vulnerable groups: women, children, migrant workers, indigenous people and
national or ethnic, religious, and linguistic minorities. We also extend the scope of our social monitoring
programmes to EMEA factories, high-risk countries warehouses, and to some non-core Tier 2 suppliers.
In 2023, we conducted a review of our grievance mechanism, in line with the UNGP criteria for operational-
level grievance systems. To do this, we surveyed 14,823 workers at 45 factories in eight countries. The
legitimacy of the PUMA hotline was acknowledged by 94% of workers, accessibility confirmed by 80% of
participants together with 92% regarding the hotline's availability in a language they understand.
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively. Please refer to the Due Diligence and Risk Assessment section of this report for
more information.
RISKS
The most salient risks to human rights are forced or bonded labour in the supply chain and, at the farm
level, child labour.
Freedom of association
As per World Governance Indicators (WGI), PUMA’s main sourcing countries have been identified as risk
countries on the Voice and Accountability indicator, which measures freedom of association. Social conflict
and freedom of association breaches could be a risk due to a lack of social dialogue at factories. The risk
could be more upstream in our supply chain when no audit programme is in place or when there is no
monitoring programme at the raw material extraction stage. We support our core Tier 1 suppliers to set up
effective social dialogue platforms in factories and adopt certification such as Better Cotton and the Forest
Stewardship Council to address raw material extraction Human Rights risks.
ILO Freedom of Association Committee has been investigating cases reported by International Trade
Unions on allegations of retaliation, anti-union discrimination and dismissals, and the arrest and detention
of workers for having participated in strike action, in a context where the legislative framework inadequately
ensures the effective recognition of freedom of association, in Bangladesh and Cambodia.
In Bangladesh and Cambodia, there were third-party complaints related to freedom of association
(described in the grievance section). As a countermeasure, all our factories in Bangladesh and Cambodia
are enrolled in the ILO Better Work programme, which provides advisory services and supports factory
management to create a participation committee as a platform for social dialogue.
Discrimination, sexual harassment, and gender-based violence
The Global Gender Gap Index measures gender equality in 153 countries by tracking and ranking a range of
gender-based gaps across society. East Asia is ranked as medium, while South Asia is ranked lower. While
East Asia has been able to reduce educational gender gaps, South Asia is one of the regions where women
are the most disadvantaged in the workplace.
Social dialogue can be used as an effective tool to overcome the under-representation of women and
promote gender equality at work. We support our core suppliers in setting up effective social dialogue
platforms in factories that include women's voices. We also support them in conducting women
empowerment training for factory workers.
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Health and Safety
South East Asia is prone to natural disasters, disease outbreaks, and health risks related to climate change.
In addition, building and fire safety risks have been identified as major risks in the apparel sector, especially
in Tier 1 and Tier 2 facilities. One of the World Health Organization’s key priorities is to strengthen
emergency risk management for sustainable development and to promote health coverage and robust
health systems.
We maintain a high focus on the OHS performance of our core Tier 1 and Tier 2 factories through factory
injury rate monitoring and OHS risk assessment training.
Wage and benefits, living wage, and working hours
Asian sourcing countries have been rated with low scores by the ITUC Global Rights Index.
We support our core Tier 1 factories, with which we have direct business relationships, to provide a fair
income for to their workforce, including all legal wages and benefits along with additional components
which could increase workers' incomes according to fair wage assessments. We launch fair wage
assessments and remediation in collaboration with the Fair Wage Network, for factories which fall short of
paying a living wage and continue benchmarking all our core Tier 1 wage data through the Fair Labor
Association (FLA) wage dashboard.
We also conduct training on root cause analysis to strengthen working hours management at our core Tier 1
factories, so the level of workers’ income depends less on overtime hours workers.
Child and forced labour
As per World Governance Indicators (WGI), PUMA’s main sourcing countries have been identified as risk
countries on Regulatory Quality (RQ) and Rule of Law (RL). The risk could be more upstream in our supply
chain when no audit programme is in place or when there is no monitoring programme at the raw material
extraction stage. We adopt certification to address raw material extraction and Human Rights risks such as
Better Cotton and the Forest Stewardship Council.
In 2021, we conducted a risk assessment on forced labour management through a third party and have
prioritised the traceability of our supply chain as a key focus. In addition, PUMA reviewed the severity
grading of audit findings according to ILO 11 forced labour indicators to prioritize the remediation process.
RISK ASSESSMENT FOR NEW FACTORIES
EiQ is a risk assessment tool for new and existing suppliers. The EiQ Sentinel service scans online and
media sources and provides alerts for supplier controversies relating to labour, health and safety, the
environment, business ethics and management systems. Sentinel alerts provide near-real-time monitoring
of supply chains from public news and information sources (in English and local languages), including local
or international media, NGO reports, government reports, worker allegations and social media platforms.
PUMA checks the EIQ Sentinel whenever it onboards a new factory. For China, we also use the IPE
database to check if any of the new factories have a record of environmental violations. We would then
ensure that factories comply with PUMA standards though a social audit. In 2023, one factory was not
onboarded due to two Sentinel alerts related to potential risks of forced labour.
IPE violations were found in three other factories. One factory was onboarded after it improved as per PUMA
standards and corrected its excessive daily wastewater discharge. The second factory improved and passed
the legally required environmental assessment but could not be onboarded in 2023 since we had not
conducted our social audit, it will be done in 2024. The third factory started production before going through
the legally required environmental assessment and without the approval of the local authorities; they
improved, so these violations were removed from the IPE database, but they could not be onboarded since
we had not completed our social audit within 2023.
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For PUMA’s existing supplier factories, 15 Sentinel cases were found as of September 2023. Eight cases
were from factories that had already been deactivated, and thus have no production for PUMA anymore. Five
cases were related to insufficient payments, health and safety, and waste management, which were
addressed through remediation action and the issues were resolved. The other two cases involve allegations
that have not been confirmed by our investigations.
RISK ASSESSMENT FOR EXISTING FACTORIES
In 2021, PUMA adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by country, commodity and issue
• Complete risk assessments for suppliers, factories, and sites
• Manage risks that are material to each supplier, factory or site
In 2023, we uploaded 676 audit results (2021-2022) to the EiQ tool. This tool shows the combined risk level
based on geography, product, and audit result. We evaluated the countermeasures we have in place in the
factories identified as high-risk facilities in this tool. 28 factories were identified as high-risk mainly due to
legal violations such as missing building safety permits, systematic excessive overtime or working hours
management. 16 factories are from Tier 1 suppliers, one is a warehouse, and 11 are Tier 2 factories. All of
them are under regular social compliance monitoring. 29% (eight) of these factories are under the ILO
Better Work Programme which offers a factory assessment and advisory services for remediation, 21%
(six) of these factories are covered by Worker Voice mobile app, through which workers can raise their
concerns to factory management (such concerns are escalated to PUMA when factories do not respond
timeously). This mobile app has also the functions to conduct workers survey and launch e-learnings for
workers. We also provided Root Causes Analysis training for 25% (seven) of the factories. One supplier in
China has been going through a capacity building programme since 2022 at PUMA’s expense to strengthen
its management system. In 2023 we saw a significant improvement as per the consultant company Elevate,
which we further explained as a case study.
In 2023, 75% (21 out of 28) of factories improved. Measures included obtaining building safety or fire safety
certificates, installing sufficient fire safety equipment, and ensuring that emergency exits were
unobstructed. Some factories improved working hours management after they joined the Root Cause
Analysis training that we provided or paid back insufficient overtime compensation. As a result, these 21
factories are no longer considered as high-risk. The four other factories are still implementing their
improvement plan and working to obtain legally mandated certificates and improve working hours
management. Three out of four factories have already joined ILO Better Work; for the one factory which is
outside of scope of ILO Better Work, we expect them to remedy the critical violations by 2024. The other
three factories are to be deactivated.
In 2023, PUMA’s Supply Chain Sustainability Team added one full-time staff member in Brazil. We now have
local team members in nearly all high-risk sourcing countries to support the implementation of our
standards. In Pakistan, with the launch of the Better Work programme, we have registered all factories in
scope to mitigate risks. We plan to add one full-time staff member to support Bangladesh and Pakistan in
2024. For the rest of the high-risk countries such as the Philippines, Mexico, or South Africa, we do not have
a local team member due to the total number of suppliers being less than ten. For these locations, we
work with third-party auditing firms to conduct regular social compliance audits.
Based on all these actions, we aim to mitigate the risks identified through this risk assessment.
WORKERS SURVEY
In 2020, PUMA launched the Worker Survey Programme to get workers’ feedback in eight countries and to
assess their satisfaction with the factory work environment through a mobile survey app.
PUMA operates multiple worker voice channels. The third-party worker engagement platforms cover 89
suppliers and 201,579 workers. 29 non-strategic factories in three countries (Bangladesh, Vietnam and
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China) also used the platforms in 2023. To review the design and efficiency of PUMA’s grievance system as
per the criteria of the UN Guiding Principles on Business and Human Rights, we collected feedback
from factory workers in 2023.
The UN Guiding Principles on Business and Human Rights set the following criteria to assess the
effectiveness of non-judicial operational-level grievance mechanisms: legitimacy, accessibility,
predictability, equitability, transparency, rights-compatibility, a source of continuous learning, and based on
engagement and dialogue. In 2023, to assess our hotline against these criteria, we surveyed 14,823 workers
at 45 factories in China, Cambodia, Vietnam, Indonesia, the Philippines, Turkey, Pakistan and Brazil.
• Legitimacy (enabling trust from the hotline users): 94% of workers agreed they can trust the PUMA hotline
• Accessibility (no barrier to access for users): 80% of workers know where to find the PUMA hotline
phone numbers and email, and 92% confirmed it is available in a language they understand
• Predictability (users are clear on the procedure): 75% of workers responded that they know what the
complaint procedure is and 90% understand their complaint will be investigated
• Transparency (keeping parties informed about progress on the issue): 91% of workers with unresolved
complaints (at the time they responded to the survey) said they were aware of the status of their cases
The Rights-compatibility criteria (ensuring that outcomes and remedies accord with internationally
recognised human rights) was not evaluated. We shall assess it in the future.
The survey results also showed that workers in Brazilian factories did not know where to find the PUMA
hotline, nor did they understand the procedure (only 25% responded positive). As a follow-up action, we will
conduct further training for workers in Brazil about our grievance mechanism and translate our video
material that explains the PUMA hotline procedure into Portuguese in 2024.
Lastly, to evaluate the effectiveness of remedial action, workers were asked systematically whether their
complaints were resolved. Of the 15% of surveyed workers who had used the hotline, 65% said they had filed
a complaint, with a complaint resolution rate of 96%.
↗ T.04 HOTLINE WORKER SURVEY - 2023
China
Cambodia
Vietnam
Indonesia
Philippines
Turkey
Pakistan
Brazil
Global
Can you access a
phone in order to call the
hotline?
76%
93%
94%
74%
92%
82%
97%
66%
86%
Do you have access to a
phone or computer to
send a complaint via
email?
57%
94%
92%
83%
92%
85%
97%
77%
82%
Can you use Zalo,
WeChat, Viber, QQ,
Whatsapp etc?
87%
96%
97%
99%
92%
97%
99%
83%
94%
Is the hotline available in
a language you
understand?
92%
88%
94%
93%
98%
87%
98%
89%
92%
PUMA’s hotline processes and complaints' numbers, statuses and outcomes are publicly available for
transparency. Our Rules for the Complaint Procedure is available for download on our website and details
about workers and third-party complaints are shared in our Annual Reports. Through regular evaluation of
our grievance mechanism, including feedback from factories' workers, we aim to collect information to
support continuous improvement of our due diligence and grievance mechanism procedure, in line with
these criteria that the mechanism should be a source of continuous learning and based on engagement and
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dialogue. For equitability, we are seeking to ensure that complainants can access a network of public and
private organisations or services to engage through the PUMA hotline on fair, informed and respectful
terms. In 2024, we plan to map local relevant organisations and institutions together with our suppliers, to
identify and share contacts of emergency care, psychological support or the judicial system, for any factory
worker in need who has raised a complaint.
↗ T.05 WORKER SURVEY 2021 – 2023
1
Year
Number of Factories
Number of Workers
2021
48
13,557
2022
68
21,526
2023
45
14,823
1
From 2021 onwards we have used Gallup’s methodology to define the sample of production workers of each factory, based on
a 95% confidence interval and a margin of error of plus or minus 5%.
WOMEN’S EMPOWERMENT
Training women about their rights and empowering them to advance their careers is key to achieving
gender equality, where both men and women have equal power and opportunities for education, healthcare,
economic participation and personal development.
60% of workers producing PUMA goods are women and 50% of factory managerial positions at our core Tier 1
suppliers are filled by women. PUMA initiatives support suppliers in reviewing existing policies and practices
or establishing new ones for women’s empowerment. We believe that collaboration within the industry and
with NGO experts in women’s empowerment is key to avoid duplication and provide the right expertise.
Since 2021, the accumulated participants of sexual harassment prevention training amounts to 222,933
workers, accounting for more than 148,642 training hours.
In 2023, we expanded the e-learning course on Sexual Harassment Prevention at the Workplace via Micro
Benefits to 50,478 workers in 37 factories in China and Vietnam. Another 4,418 workers at eight factories in
Cambodia and Indonesia completed the Better Work e-learning course on Discrimination and Elimination of
Violence and Harassment at Work via the mobile phone app WOVO, covering 51% of employees in these
factories.
China’s textile and apparel industry employs approximately 20 million people, over 60% of them female,
comprising many domestic migrants at the age of marriage, childbirth, or childcare. These workers have
limited education in personal development, childbirth and family care, and often must juggle their work at
the same time. Therefore, the China National Textile and Apparel Council (CNTAC) has launched the
initiative to build Family-Friendly Factories in the Chinese textile and apparel industry. This initiative is
supported by UN Women and UNICEF. In 2023, we partnered with CNTAC, piloting the Family-Friendly
Factories project at three core Tier 1 factories with 5,566 workers in total.
The programme’s objectives are:
• Understand how Chinese textile and apparel companies implement family-friendly policies, as well as
their challenges in implementing a gender equality system
• Develop guidance for these companies to promote family-friendly policies at the workplace
• Assist pilot companies in establishing family-friendly mechanisms in line with their existing human
resources management system
• Promote and pilot best practices across the industry
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In 2023, CNTAC conducted an onsite baseline assessment at three PUMA factories through workers surveys
and interviews about their perception of their factory’s current policies and practices, and their challenges
regarding family care. The project team also trained 207 workers (73% female) on gender equality, family-
friendly policies, work-life balance, and parent-child education. The three factories were provided with an
improvement plan to review their internal policies. PUMA’s Sustainability Team is working closely with them
to implement these improvement plans by the end of 2024.
PUMA encourages suppliers to join the ILO Better Work programme. The Better Work’s factory
improvement process includes three integrated services: assessments, follow-up advisory services and 15
training days per year. In 2023, 32 management staff (72% female participants), from 17 factories in
Bangladesh, Cambodia, Indonesia and Vietnam joined 19 training sessions on topics including gender
equality, sexual harassment and prevention of discrimination and gender.
The World Benchmarking Alliance (WBA) Gender Benchmark evaluates 112 of
the largest apparel, food and agriculture companies globally on their
responsibility to drive and promote gender equality in their entire value chain.
In the 2023 Gender Benchmark PUMA ranked eighth out of 112 companies and
sixth in the apparel sector with a score of 43.5 out of 100. 2023 was the first
time PUMA participated in the Gender Benchmark.
SUPPLIER SCORECARD
In 2023, PUMA conducted calls with 58 core Tier 1 factories to review the social scorecards for each of their
factories performance as of end of 2022, which included:
• Audit rating
• Participation in supplementary worker voice tools offered by third parties
• Workers’ training on women’s empowerment/sexual harassment
• Factory's injury rate compared to PUMA core Tier 1 factories’ average rate and 2023 goals
• Factory's average weekly overtime hours vs. PUMA core Tier 1 factories’ average
• Factory’s fair wage performance compared to living wage benchmark
• Whether the factory has freely elected worker representatives against 2025 goals
During these meetings, we reviewed the scorecard and discussed next steps to address identified gaps.
Most suppliers agreed with the scorecard and the action plan to achieve PUMA’s 2025 sustainability targets:
• Worker voice: 57 out of 58 factories are covered by third-party worker voice platforms (mobile app) and
one supplier in Brazil was added to PUMA’s 2023 strategic partner list. We discussed launching a third-
party worker engagement platform. Some suppliers shared their concerns about the functionality
of third-party worker engagement platforms, we are looking into it to further improve or find an
alternative.
• Fair wage: The discussion was based on the factories 2021 wage data; three factories were suggested to
conduct a Fair Wage Assessment as their wage level is below the industry or GLWC benchmark, which
was conducted in 2023.
• Women’s empowerment: Except for our new strategic supplier in Brazil, the rest of our core suppliers
provided sexual harassment prevention training to workers after the managerial staff had been trained
by PUMA. In 2023, 41 out of 58 factories continued the sexual harassment e-learning via the third-party
worker engagement platforms, and three Chinese factories joined a pilot led by CNTAC on promoting
gender equity.
• Worker representation: During these meetings, we encouraged 20 factories which had not freely elected
workers’ representatives, to either join the ILO Better Work programme, which help suppliers to set up a
Worker-Management Committee or join PUMA’s programme when the factory is not under the scope of
Better Work. Four of them joined the Better Work programme in 2023 or will join in 2024. In 2023,
PUMA’s Sustainability Team members in China, Vietnam, Bangladesh and Indonesia had been trained by
Timeline Consultancy, a China-based consultancy company, on guiding factories not in scope of the
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Better Work programme to have freely elected worker representatives and to build a dialogue
mechanism. The 16 factories agreed to join PUMA’s Worker Representation Programme.
SOCIAL COMPLIANCE
PUMA’s Code of Conduct is an integral part of our supply contracts. All PUMA suppliers sign a legally
binding “Declaration of Principles” to comply with the PUMA Code of Conduct. PUMA requires all vendors,
their subcontractors, and their suppliers to comply with this Code of Conduct, as well as PUMA’s Social and
OHS handbooks. These compliance expectations are verified through regular audits. The frequency of audits
is based on a factory’s previous audit results: A-graded factories are re-audited after 24 months, B+ after
18 months, B- after 12 months and C-graded after six months. Warehouses graded A, B+, B- are re-audited
after 24 months, C-grade after 12 months and D after six months. For factories with a D grade, including
Better Work Factories, Zero Tolerance (ZT) issues need to be corrected between two and six months.
Potential new factories will not be authorised to produce PUMA products until the factory can be rated
A or B. Regardless of the factory grade, all issues identified during audits need to be remediated as part of a
corrective action plan.
Since 1999, all direct PUMA factories (Tier 1) have been frequently audited for compliance with the ILO Core
Conventions and basic environmental standards. Each year we collect between 300 and 500 audits or
assessment reports issued through PUMA’s compliance programme, the ILO Better Work Programme, our
industry peers’ compliance programmes or independent experts accredited by the Social and Labour
Convergence Programme (SLCP). We have also included our most relevant material and component
suppliers (Tier 2) and key priority warehouses in our audit programme. Through collaborative efforts with
the sourcing team, we mapped more than 200 non-core Tier 2 suppliers in 2022. While one-third use FEM
(Facility Environmental Module) for other brands, only 13 have had a social audit. We converted these audit
reports in our grading system. In 2023, we reminded all suppliers that the use of undeclared sub-
contractors is a Zero Tolerance issue, as per PUMA standards. We asked them to self-declare their Tier 1
subcontractors used for PUMA production. 66 Tier 1 subcontractors were declared, 26 (19 for the first time)
had an audit report that we converted into PUMA‘s grading system.
In 2023, 454 Tier 1 suppliers, 92 Tier 2 suppliers and three warehouses were audited. 581 audit reports from
these 549 factories were collected to safeguard workers’ rights to more than half a million workers
(656,473).
All PUMA suppliers are required to display our Code of Conduct in factories producing PUMA products,
materials or components. This contains the contact details of the PUMA Sustainability Team as a whistle-
blower hotline. The number of grievances received and solved, as well as the most frequent type of
grievances are shared in this report.
Furthermore, PUMA is a member of the Fair Labor Association, which regularly audits and accredits
PUMA’s compliance programme for compliance with the Fair Labor Association’s Code of Conduct. This
ensures that PUMA has the systems and procedures in place to successfully uphold fair labour standards
throughout its supply chains and mitigate and remediate violations. As an FLA member, PUMA has agreed
to subject our supply chain to independent assessments and monitoring as part of an organisational
commitment to upholding fair labour standards through transparency. FLA publishes the results of these
assessments to encourage an open and honest dialogue about the conditions that workers face, ensure
PUMA’s accountability, and help consumers make more informed decisions about the products they buy.
View the public assessment results here: PUMA, SE – Fair Labor Association.
A comprehensive explanation of our compliance programme for suppliers (including grievance mechanisms
and case studies) can be found in our Sustainability Handbook for Social Standards. Our Social Handbook
explains the procedure for factory monitoring programmes (section 3) and our standards. This handbook is
reviewed on a regular basis and our suppliers receive regular training on our standards and monitoring
process. We launched the e-learning via Elevate’s EiQ Learning platform in April 2023. All suppliers were
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65
invited to complete the training course. 1,035 participants from 557 factories passed the e-learning in 2023,
representing 85% of PUMA’s active factories.
PUMA’s supplier factory list is disclosed on our website. It includes details such as the factory name,
address, product category, headcount range, the percentage of female workers, percentage of foreign
migrant workers and freely elected worker representation. PUMA also publishes its factory list in the Open
Supply Hub platform.
AUDIT PROCESS
Our audit starts with briefing the factory management and worker or union representatives on PUMA
standards, the audit process and its scope. In 2023, 94% of the audits conducted included a trade union
representative or workers’ representative during the audit’s opening and closing meetings (when closing
meetings take place during factory working hours).
We have a team of compliance experts in all our major sourcing regions who regularly visit our core
manufacturing partners. We work with external compliance auditors and with the ILO’s Better Work
Programme. Each PUMA supplier factory must undergo a regular compliance audit every six to 24 months
based on their audit rating and all issues identified need to be remedied as part of a corrective action plan.
Interviews with workers, workers’ representatives or union representatives are crucial for understanding
workers’ perspectives on workplace standards, the atmosphere at factories and protecting vulnerable
workers from any work that is likely to cause harm. All interviews with workers are conducted on-site (no
offsite interviews).
Around 79% of active factories were audited in 2023. Factories not audited in 2023 either had an audit that was
still valid because of their grading, were waiting for Better Work assessment or were located in Ukraine.
To avoid duplication and prevent auditing fatigue, in 2023, we increased the percentage of shared
assessments to 67% (59% in 2022). We will further increase our use of SLCP-based assessments
to 350 factories in 2024. We believe that SLCP is an ideal tool for building long-term relationships with
suppliers and supporting them to take ownership of their social and labour data. PUMA is a member of the
ILO Better Work Programme and uses Better Work assessment reports in lieu of the PUMA compliance
programme. PUMA also uses FLA-accredited brands' reports as well as some other brands’ audit reports in
lieu of the PUMA compliance programme. We aim to use external reports converted to PUMA standards for
up to 80% of our factories by the end of 2025.
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↗ T.06 AUDIT RESULTS 2021 – 2023
2023
2022
2021
T1
T2
Warehouse
T1
T2
Warehouse
T1
T2 Warehouse
A (Pass)
120
24
63
17
75
6
B+ (Pass)
154
27
1
157
41
144
23
2
B- (Pass)
152
38
2
144
39
2
155
46
1
C (Fail)
18
2
19
11
1
16
7
D (Fail)
10
1
9
4
3
2
Total Active+Inactive
audited factories
454
92
3
392
112
6
392
82
3
Total active factories as of
Dec 31st, 2023
564
120
7
516
128
10
445
99
6
Number of employees
572,541
81,756
2,176 546,286
82,070
2,229
Audit coverage %
80%
77%
43%
76%
88%
60%
88%
83%
50%
Total active+inactive
audited factories
549
510
477
Pass/Fail %
94/6
97/3
100
93/7
87/13
33/67
95/5
91/9
100
↗ G.07 AUDIT RESULTS 2021 – 2023
1
1
Total factories audited: 477 in 2021; 510 in 2022; 549 in 2023
16.6%
35.8%
42.3%
4.8%
0.4%
15.7%
38.8%
36.3%
6.3%
2.9%
26.2%
33.2%
35.0%
3.6%
2.0%
A
B+
B-
C
D
2021
2022
2023
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AUDIT RESULTS AND FINDINGS
In 2023, we continued following up and training the factories with low performance; as a result, 67 factories
were upgraded to A or B+. 144 factories were audited for the first time in 2023 as per our strategy to
increase local-for-local production and to scale up our social monitoring programme to non-core Tier
2 suppliers (11) and Tier 1 sub-contractors (19).
In total, 36 factories failed the audit, (31 Tier 1, five Tier 2); 14 were deactivated due to low performance. Five
were re-audited in 2023 and passed the audit; 17 factories will be re-audited in 2024 since they have six
months to improve. 19 out of 36 were new factories, 12 factories were not onboarded so we did not enter into
any business relationship with them, four were re-audited and improved to a passing grade, the three other
factories (two non-core Tier 2, one retail furniture supplier) were audited for the first time in 2023 as we
expanded our audit scope; they all committed to improve and they will be re-audited in 2024.
Out of the 11 factories graded D in 2023, seven factories were deactivated. Four are still active as at the end
of 2023, as progress is on-going. Two out of these four D-graded factories had Zero Tolerance issues on
transparency and payment below minimum wage which were uncovered in late 2023. They corrected these
issues within 2023, as one paid back minimum wages. The other factory stopped subcontracting home
workers, recruited workers and communicated their policy change to all managerial staff and workers;
several critical issues are still under remediation and should be corrected in 2024. For the other two D-
graded factories, since the factory management submitted reliable corrective action plans, we will follow up
on the remediation by mid-2024.
↗ G.08 2022-2023 NUMBER OF MOST FREQUENT FINDINGS
1-2
1
Top 10 findings in 2023 active factories only excluding newly audited factories in 2022 and 2023
2
Including converted reports
G.08 shows the 10 most frequent audit findings from PUMA’s audit programme, including both own and
external converted reports.
Initial assessments are excluded from this graph. 144 audits were initial assessments (meaning no audit
was conducted previously) in 2023, 25% of the total number of audits performed over the course of the year.
These suppliers are not yet familiar with our standards. In 2023, we provided an e-learning on our social
91
48
57
64
24
11
7
5
3
20
87
65
59
46
26
9
9
9
9
8
2023
2022
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standards, which helped newly onboarded suppliers to better understand our expectations. As a result, the
pass rate of newly onboarded suppliers in 2023 was 4% higher than in 2022 (2023: 87%; 2022: 83%).
Working hours management: In 2022 we provided working hours management training for all Tier 1
factories. A root cause analysis workshop was held with selected core suppliers in both 2022 and 2023 to
explore opportunities for improvement. Factory management reviewed and strengthened their policy and
working hours monitoring system. They gained a deep understanding of how to conduct a root
cause analysis. We developed an action plan to address prioritised root causes of overtime hours. We
noticed improvements as there was a decrease in the number of audit findings in systematic excessive
overtime (reduced by 4.6%), overtime compensation (reduced by 3.2%), and working hours management
(reduced by 0.6%). We notice a decrease in the average overtime hours at our core Tier 1 factories compared
to 2022 from 7.7 to 5.3 hours in 2023, but it can be due to a decrease of our order book due to 2023 global
macroeconomic situation, which led to a change in customers' ordering behaviour.
Wages and overtime: Among issues related to wages and/or overtime, 31% of the corrective actions were
implemented and these issues were resolved in 2023, which is 20% higher than the 11% rate in 2022. We
expect more progress in 2024 as 31% of audits were conducted at the end of 2023, these factories involved
will receive a follow-up audit in 2024 to validate their improvements.
Social security: 100% of workers are covered under social security among all our core Tier 1 suppliers,
except in China where this is the case for 80.4% of workers. We plan to further explore how to support
suppliers to remedy those issues via in-person workshops in 2024. Improving working hours management,
following up with suppliers to obtain legal permits, and increasing social security coverage will continue to
be a focus of our efforts.
Transparency: Four transparency issues were found in 2023. One new factory with one transparency issue
along with other violations such as insufficient benefits and several OHS findings was not onboarded as a
PUMA supplier; two factories with one transparency issue each provided consistent records for review after
we emphasised PUMA’s zero tolerance policy on transparency. These records were verified by PUMA. One
transparency issue in one factory detected in late 2023 remains open; we will follow up in early 2024.
Freedom of association: The four open issues related to Freedom of association identified in 2022 were all
closed through follow-up with the management or under the Better Work programme. Five audit findings
related to Freedom of Association breaches were identified in 2023, such as the dismissal or poor treatment
of union members and delayed union elections. As of today, three issues were closed; one is still open
as there is an on-going mediation process between the management and trade union workers; the other
issue remains open, and concerns the factory HR manager taking dual leadership roles in
both management and union. This factory is working with Better Work Vietnam for remediation.
Women’s rights: PUMA is committed to respecting women’s rights as per the Convention on the Elimination
of Discrimination Against Women and expects suppliers to commit to and respect women’s rights. In this
context, we carefully monitor working conditions for women. In 2023, we identified 38 women-related audit
findings about missing benefits for nursing workers, unadopted conditions for pregnant workers or toilets
not maintained in clean and sanitary conditions. 15 of them were closed through follow-up with the factories
or via the Better Work programme, three findings will not be followed-up on because the factories
have been deactivated, 20 are still under remediation and are being followed-up. One violation was related
to unvoluntary overtime and has been corrected as per a Better Work progress report.
Freedom of movement: One audit finding was identified related to restricted freedom of movement. As a
result, the factory management issued warning letters to all relevant supervisors and conducted training to
avoid similar situations in future. We will verify these actions onsite in 2024. No case was found related to
workers' passports nor other identity and personal documents being retained.
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Wage payments: We identified 16 violations regarding delayed wage payments, 12 of them were closed; two
findings will not be followed-up because the factories were deactivated; for the two open findings, one
factory is working with Better Work on remediation, and another factory took appropriate actions so no
wage payments will be delayed. We will verify that proper actions were taken on-site in 2024.
Beyond auditing, we track social key performance indicators such as average payments vs. minimum wage
payments, overtime hours or coverage by collective bargaining agreements. This data is reported
under the Fair Income target section.
SUPPLIER TRAINING
To ensure that our suppliers understand the requirements set by PUMA as well as international due
diligence regulation and standards in the garment and footwear industry, PUMA organised multiple training
sessions in 2023, including:
• In-person or virtual suppliers round tables to share updates on PUMA standards and industry
best practices, elaborate on the German Due Diligence Supply Chain Act by industry experts; CNTAC in
China and VITAS in Vietnam.
• Training factory management on Accident Prevention and Reporting, who will then support us to achieve
the goal of training 100,000 workers on this subject.
• Root cause analysis training for strategic suppliers, so that they can develop corrective actions to resolve
their audit findings by addressing their root causes.
• Customised e-learning on Social Standards, to help suppliers, especially those newly onboarded, to
better understand PUMA's expectations.
• PUMA’s expectations to suppliers regarding our Code of Ethics.
We launched the e-learning via Elevate’s EiQ Learn platform in April 2023, and all suppliers were invited to
complete the training. 1,035 participants from 557 factories passed the e-learning in 2023, representing 85%
of PUMA’s active factories. We plan to add this e-learning to PUMA’s website, which will allow users, new
factories and workers, to access the course at any time.
↗ T.07 SUPPLIER TRAINING
Meeting
Topics
Number of
factories
% of suppliers
trained*
Number of
participants
Supplier in-person round table or
virtual meetings
Sustainability updates,
best practices sharing, German
Supply Chain Act. etc.
Average. 532
per round
(2 rounds)
81%
Average.
1,122 per
round
(2 rounds)
Code of Ethics**
536
82%
1,230
OHS Accident Prevention and
Reporting training
Training of Trainer to core Tier
1 supplier management on what
and how to do OHS Accident
Prevention and Reporting
102
16%
290
Root Cause Analysis training
In depth review of root
cause analysis methodology to new
core Tier 1 and core Tier 2 factories
71
11%
169
PUMA Social Standards e-learning
PUMA social standard handbook e-
learning course via EiQ Learn
platform to active factories’
management
557
85%
1,035
*
% of factories joined the training based on total 656 factories. The 656 factories include PUMA core Tier 1 and Tier 2, non-
core Tier 1, stichd factories and licensee factories.
** Included to second supplier in-person round table or virtual meetings.
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↗ CASE STUDIES
Capacity Building in China
With Elevate as a partner, a one-year capacity building programme was carried out to help the
supplier and its factory staff to identify key gaps in the factory’s management system and provide
them with a toolkit and expertise to drive sustainability-related improvements. Through top
management commitment, training and capacity building, regular review of metrics and impact
assessments, the factory understood the importance of being transparent with PUMA; established a
proper grievance mechanism, established an effective working time recording system; started to use
internal inspection tools to manage CSR performance independently and corrected most (91.7%) of
the EHS findings.
To further improve it was recommended that the factory should enhance compensation and benefits
payment systems, conduct follow-up investigations of workers’ suggestions and have a proper
mechanism to answer these suggestions.
GRIEVANCE CHANNELS
PUMA works towards providing access to functioning grievance channels throughout its supply chain.
Where we do not have direct operations, we seek out partners who can run such complaints mechanisms,
according to the UN Guiding Principles. At the cotton farm level, the Better Cotton Grievance procedure
provides a system for anyone, including third parties, who engages with its activities, people or programmes
to raise a complaint relating to any aspect of Better Cotton and its activities.
We operate multiple worker voice channels to reach more than half a million workers at our Tier 1 and core
Tier 2 factories. If workers are not satisfied with the responses offered by the factories via their respective
internal grievance system, we encourage them to use the PUMA hotline to raise complaints or request
consultations. Hotline contact details are published on our Code of Conduct posters, displayed at every
audited factory globally. We also use WeChat, Zalo, Facebook and other social media channels to connect
with workers and have established more formalised compliance and human resources apps at selected core
suppliers.
The third-party worker engagement platforms cover 89 factories (201,579 workers), which represents more
than 80% of our production volume. In 2023, 1,544 feedback messages were received through the
MicroBenefits and the WOVO platforms in China, Indonesia, Pakistan, Philippines, Turkey, Cambodia and
Vietnam, as well as the Amader Kotha Helpline in Bangladesh. Of the 1,544 messages, 41 cases were
escalated to PUMA as the factory did not respond within the 48-hour timeline. PUMA engaged with the
factories’ management to address workers’ concerns. All other concerns not escalated to PUMA were
handled and resolved directly by the suppliers.
In 2023, we engaged with a local hotline, Hamari Awaz who will provide all workers in factories producing
for PUMA in Pakistan with access to a local hotline in early 2024.
In 2023, 107 workers’ concerns were raised through PUMA’s hotline across eight countries. Together with
our suppliers, our team was able to resolve all these cases.
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In 2023, to meet its obligations under the German Act on Corporate Due Diligence Obligations in Supply
Chains (LkSG), PUMA published its Rules for the Complaint Procedure. PUMA’s own employees and the
employees of PUMA’s business partners can submit complaints in connection with human rights or
environmental risks and violations, as well as violations of PUMA policies via the following channels:
• PUMA’s electronic whistleblowing platform
• Telephone numbers of the PUMA Sustainability Team (“PUMA Hotline”)
• Third-party platforms made available to factory workers by the factories
Complaints may be made anonymously and all information regarding the complaint is treated as strictly
confidential and only shared on a need-to-know basis or if required by law. All complaints received are
acknowledged within seven days and PUMA shall conduct a comprehensive investigation without delay.
PUMA will also share the outcome of the investigation with the party making the complaint.
PUMA shall review the effectiveness of its complaint procedure at least once a year, or on an adhoc basis if
PUMA expects a significant change or increase in risk exposure in PUMA’s own operations and at PUMA’s
business partners. We aim to translate the Rules for the Complaint Procedure into 40 languages in 2024 to
ensure it is accessible for end users in PUMA’s supply chain.
↗ T.08 WORKERS’ COMPLAINTS 2020 – 2023
Workers’ complaints
2023
2022
2021
2020
Total received – external channels (third-party platforms)
1,544
2,006
3,132
1,021
Total received – PUMA Hotline
107
159
223
101
Total confirmed- PUMA Hotline and third-party platforms
1,443
1,877
3,165
984
Total received – PUMA Hotline and escalated to PUMA via third-party
platforms
148
173
262
127
Resolved - PUMA Hotline and escalated to PUMA via third-party platforms
148
172
261
126
Not resolved - PUMA Hotline and escalated to PUMA via third-party
platforms
0
1
1
1
Resolved (%)
100%
99.4%
99.6%
99.2%
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↗ G.09 NUMBER OF MOST FREQUENT GRIEVANCES RAISED IN 2023 THROUGH PUMA HOTLINE
AND THROUGH THIRD-PARTY PLATFORMS ESCALATED TO PUMA
WORKER COMPLAINTS
The most frequent areas of concern raised by workers remain as fair compensation, their employment
relationship, and excessive working hours. Most workers’ concerns about wages and benefits are mainly
due to their misunderstanding of wage and benefit calculations. We asked factories to proactively talk to and
train workers on wage and benefits' calculation methods. Regarding the employment relationship topic,
many cases are about workers wishing to resign without following the legally required notice period.
We asked factory management to discuss solutions with their employees.
In any country, when workers complain about working during public holidays or overtime hours, PUMA
would engage with factory management, to adjust the production schedule and to make sure overtime is
voluntary and properly communicated with workers. Furthermore, PUMA provided training to these
factories on working hours management, and overtime root cause analysis to prevent excessive overtime.
Below is a case study of the PUMA Hotline, which explains how we followed-up with our supplier to close
the single remaining open case of 2022.
39
31
20
11
11
10
5
3
2
2
6
2
3
2
1
Resolved
Not-Resolved
Unaccepted
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↗ CASE STUDIES
PUMA Hotline
A worker from a footwear factory in Vietnam called the PUMA Hotline in September 2022 regarding
the subsidies sponsored by the government according to the Resolution No. 68/NQ-CP dated on
July 1
st, 2021. Under this regulation, employees who were under contract suspension or termination,
or unpaid leave between May 1
st, 2021 and December 31
st 2021, and pregnant or taking care of children
under six years old are entitled to one of government subsidies. The complainant submitted all the
necessary documents to the factory to apply for this government subsidy but did not receive
any updates.
PUMA immediately contacted the factory. The factory explained that due to being busy with Covid
prevention measures and high levels of absenteeism in January 2022, they missed the deadline to
submit the documents to the local authority. In total 2,032 workers failed to receive a total amount of
about $ 115,000. Despite the factory’s efforts to follow-up with the local authority for the payment,
there was no positive response.
PUMA encouraged the factory to discuss with the Trade Union representatives to find a solution. In
July 2023, the Trade Union and the factory reached a consensus so the factory would pay 70% of the
subsidy, $ 78,388 to make up for the unpaid subsidy. PUMA verified that an instalment of about
$ 77,181 were paid to workers in 2023. A few workers could not be paid ($ 1,207) as they had left the
factory. We are still engaged with the factory management regarding the remaining 30%.
THIRD PARTY COMPLAINTS
We continued following-up on the six open third-party complaints in 2022. Five related to freedom of
association were resolved through active engagement with factories, union and other stakeholders, with
union representatives reinstated or compensated in agreement with the unions involved. One of these five
cases was settled in collaboration with the Fair Labor Association and other brands, more details can be
found in case study below. Another complaint is about workers’ wages in Mauritius, which was followed-up
under the umbrella of the Fair Labor Association and in collaboration with other brands: migrant workers in
Mauritius received less than a minimum wage after the dormitory fees were deducted from their salary.
Based on the inspection report of local labor authority the practice is legal. In 2024 we will continuously
engage with the FLA and other stakeholders to find a collective solution.
In 2023, we received 15 third-party complaints from external organisations, 11 of which have been resolved.
Nine cases were related to freedom of association breaches, eight out of these nine cases were resolved
through active engagement with factories, unions and other stakeholders. The union representatives were
either reinstated or compensated in agreement with the unions involved. One case is still going through the
mediation process between management and the trade union.
Three cases involved wage and benefits issues; one of them is the request from the Bangladesh Union
Federation to provide support on their minimum wage demands. Upon receipt, PUMA actively engaged with
ILO Better Work and the Fair Labor Association. We published our Position on our website, and co-signed a
letter to the prime minister with other brands, through Fair Labor Association in November, to support
trade unions. Another two wage and benefits cases are still under investigation.
Two cases relate to NGO reports on working conditions for supply chain workers in Pakistan and Cambodia.
For both reports we engaged with ILO Better Work and the reporters. Details are provided under Pakistan
and Cambodia paragraphs below.
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In May 2023, a trade union requested the dismissal of two managers at a factory in Cambodia because they
thought they were responsible for the reduction of orders, among other concerns. The management and
union had several meetings to discuss the concerns. The management accepted all the trade union’s
concerns and took action, except for the dismissal of the two factory managers, which the trade union
agreed to retract.
Pakistan
In 2023, Labour Behind the Label published a Report on labour rights in Pakistan regarding issues such as
no payment of living wage, no employment contract, leave being denied or unpaid, child labour, no social
security, harassment, health and safety issues, fire safety risks and freedom of association breaches.
PUMA has investigated the details of the report and engaged with the reporters to understand the
methodology used. The report relates to factories located in Karachi, Faisalabad, and Lahore. While PUMA
does not have a business relationship with any suppliers in these regions, our subsidiary stichd, does have a
business relationship with four factories in this region, two of which are included in the report.
Three out of the four factories in the mentioned areas were audited in 2023, while one factory was audited in
2021 with a rating still valid in 2023. As a follow-up in 2023, PUMA conducted a full unannounced
assessment of all four factories through a different third-party company. As a result, three of the factories
were downgraded. We are closely following up on progress to address these newly identified violations
and all factories producing PUMA products that fall within the scope of the Better Work programme are now
enrolled in the Better Work programme. Additionally, all workers of factories producing for PUMA in
Pakistan will have access to a local hotline, Hamari Awaz.
Better Work Pakistan will also provide a social dialogue programme, as well as leadership capacity building
initiatives and training for female workers. Other services will include the ILO’s occupational health and
safety approaches, a factory improvement toolkit and productivity focused training. Additionally, PUMA
signed the ACCORD Pakistan in March 2023 for all factories producing PUMA and stichd products.
Cambodia
In 2022 we received five complaints concerning three Cambodian factories, about potential breach of
freedom of association rights. Three were resolved in 2022 and two in early 2023. We worked to find the best
solution related to these concerns, facilitating mediation meetings between workers’ representatives and
factory management, partnering with Better Work Factories Cambodia and/or with other brands producing
in the same factories. It took three to five months to solve these complaints.
Despite all our efforts, we received five complaints about freedom of association from Cambodia in 2023.
Four cases were resolved through open dialogue and facilitated mediation meetings between factories and
unions. One case is still under mediation or investigation.
We continued to work with Better Factories Cambodia (BFC) and hosted a training series from April to
August 2023 for all Cambodian factories producing PUMA products. 183 participants from 27 factories’
management teams, shop stewards and union representatives attended the training. As a lesson learned
from training conducted in 2021, we added one exclusive session for factory decision-makers in Chinese in
addition to a session conducted in Khmer for workers representatives and trade union leaders.
The aim of the training was to provide participants with a better understanding of:
• Rights and obligations of the employer, unions and worker representatives
• Managing communication and employment contract termination such as: resignation, dismissal, and
retrenchment.
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As per the BFC feedback, as result of the training participants confirmed they gained a better understanding
about Freedom of Association and their roles and responsibilities. All 27 factories submitted a Corrective
Action Plan after the training. We will verify the implementation of each action plan in early 2024 according
to the five KPIs established by BFC. They are described below:
1. Conduct regular meetings between the employer, union and shop stewards to raise and address any
concerns in the workplace on weekly/biweekly/monthly basis.
2. Develop/review a Freedom of Association (FoA) policy in consultation with the unions and shop stewards
and implement this policy accordingly.
3. Develop/review a Grievance Handling policy in consultation with the unions and shop stewards and
implement this policy accordingly.
4. Develop/review a policy for Employment Contract Termination in consultation with the unions and shop
stewards and implement this policy accordingly.
5. Provide internal/external training to more workers on relevant topics such as the roles and
responsibilities of the employers, unions and shop stewards.
In September 2023, the NGO Action Aid published an investigative report alleging that garment factories in
Cambodia, supplying apparel and footwear to companies (including PUMA), reduced monthly wages
compared to 2020 levels and failed to pay sufficient severance when the factories closed due to the COVID-19
lockdown. The report, which interviewed 308 garment workers in 15 factories, also claimed that workers
were unable to afford necessities even after the COVID-19 lockdown restrictions were lifted due to lower
wages and fewer overtime hours, while overtime pay became a systemic dependency.
Following the report, PUMA engaged with the Clean Clothes Campaign (CCC) and Action Aid to understand
the methodology behind the allegations that were made. For PUMA, the allegations relate to six of PUMA’s
suppliers, two of which PUMA had ended the business relationship with by mutual agreement in 2021. After
further investigation, PUMA did not identify any wage gap as per the government’s instructions during the
lockdown period in the remaining four factories. Although “no work, no pay” directives were in effect, PUMA
ensured that workers would receive a regular income during 2021 lockdown through regular communication
with our suppliers in collaboration with our sourcing team.
Between 2019 and 2022, Cambodia represented around 13% of PUMA’s total sourcing volume. In 2020 and
2021, PUMA focused on keeping suppliers in business and safeguarding workers’ health, employment, and
income through several measures including: minimizing order cancellations (0.35% of orders were
cancelled in 2020) and expanding our PUMA Vendor Financing Programme, with an increase in suppliers'
participation from 21% in 2019 to 30% in 2020. As a responsible business partner for our suppliers, PUMA set
up a responsible purchasing practices policy and engaged with Better Buying, an independent non-profit
organisation, to collect feedback from our core suppliers related to our purchasing practices. We reported
the key findings of the Better Buying survey in this report.
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↗ CASE STUDIES
Indonesia
On July 7
th, 2023, PUMA received complaints from a union related to union staff members at one of
PUMA’s footwear suppliers who were terminated based on not passing their probation period. The
union mentioned that the termination was considered illegal since it was without prior notice and no
evaluation was performed by a respective supervisor and section manager. The union believed that
this happened due to their union membership. The union leaders asked PUMA to support the
reinstatement of the three workers. On July 13
th, 2023, PUMA investigated and interviewed the factory
management and union representatives. PUMA found that the termination of the three union
members was not legal since there was no clear performance assessment from the respective of the
section heads. This was explained to factory management who agreed to re-instate the three
workers to the same position with the same wage. No wages were deducted for the period when the
workers were laid off. The union leader acknowledged PUMA’s engagement in this case and
recognised our commitment to respect freedom of association.
Madagascar
In June 2022, PUMA received a request from IndustriALL
’s Sub-Saharan Africa regional office to
support one of their trade union affiliates called SEMPIZOF in Madagascar. According to IndustriAll,
about 350 machinists went on strike in a factory producing for PUMA and other brands from May 18
th
to 25
th, 2022 to protest on wages and unfair skills’ assessments for experienced workers. The strikers
also denounced sexual harassment against female workers and bribery during recruitment.
SEMPIZOF approached the Labour Inspectorate and Labour Tribunal with another IndustriALL
affiliate SVS to request the reinstatement of 50 workers (dismissed during the strike) and respect of
workers’ rights. We immediately followed up with the supplier, who confirmed the unrest of 345
workers (out of 1,550), the dismissal of 58 workers, and their willingness to collaborate
for remediation. The four brands including PUMA producing in this factory had several meetings on
collaborative actions and reached out to the Fair Labor Association (FLA) for support.
In July 2022, during a first call with the FLA, the brands agreed to find an independent third party to
conduct an in-depth investigation. The FLA interviewed several candidates and commissioned an
independent third-party The Labour Hive in November 2022. It completed an investigation and
provided a detailed report with suggested actions in February 2023. The report includes a thorough
analysis of all allegations. The factory immediately suspended the manager related to
sexual harassment allegations and dismissed him after the investigation. The investigation did not
identify issues related to overtime, short-term contracts, unfair dismissals because of trade union
activities nor bribery at recruitment. The FLA published the results of the investigation report.
Brands studied the report and agreed on an action plan with the supplier in May 2023. During a
follow-up verification of the remedial action plan in November 2023, it was confirmed and verified by
The Labor Hive that factory management had engaged with various stakeholders such as
local authorities, Better Work, trade union (FISEMA), and worker reps to take corrective actions.
Various projects and programmes have been implemented, and improvements such as an increased
meal allowance, adjusted salary as per government decree, regulating probation period
for production workers, and removal of the dismissed workers from the blacklist (so that they can
find jobs in other factories) were made. In partnership with ILO Better Work, the factory
arranged several trainings on Freedom of Association, Harassment and Abuse, Compensation and
Benefits and Hours of Work. Further improvements on workplace dialogue, workers’
satisfaction surveys, training effectiveness, renewal of workers’ representation election, and the
implementation of a workers’ performance evaluation system are still on-going and aim to be
completed by August 2024.
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ZERO TOLERANCE ISSUES
All issues identified during our auditing and hotline activities are classified as zero tolerance issues (such
as child labour or forced labour), critical issues or other issues in our Sustainability Handbooks.
Zero tolerance issues lead to the immediate failure of an audit. If these issues are reported for a new
factory, the factory will not be allowed to produce PUMA goods. Established suppliers must remedy all zero
tolerance issues immediately by conducting a root cause analysis and implementing preventive measures to
prevent the issue reoccurring. As a last resort, a business relationship can be terminated if the factory fails
to cooperate. Other issues are also followed up on by our Compliance team.
In 2023, we identified 19 zero tolerance issues and were able to remedy eight on workers’ compensation in
line with legal requirements, lack of transparency and wastewater discharge. Two zero tolerance issues
remain open. One was related to a South Africa-based factory producing furniture for our retail stores
paying 94% of the minimum wage, as they were granted an exemption by local authorities. After meeting the
factory management, they committed to pay the full minimum wage from July 2024. Another example is
a factory in Pakistan which was found to have transparency issues during an unannounced audit in late 2023
conducted after the publication of a Report from Labour Behind the Label. The factory committed to
improve and joined the Better Work programme in December 2023. We informed Better Work about this
case and intend to resolve this issue during its first assessment. Nine factories were not onboarded or were
deactivated in 2023. The increase in zero tolerance issues is due to the increased number of
factories audited in 2023.
↗ T.09 ZERO TOLERANCE ISSUES (ZTIS)
Country
2023
2022
2021
India
5
3
Bangladesh
3
2
Cambodia
2
1
2
Vietnam
2
2
Canada
3
Pakistan
2
South Africa
2
Brazil
1
China
1
Egypt
1
Malaysia
1
Philippines
1
Spain
1
Grand total
19
12
4
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FREEDOM OF ASSOCIATION PROTOCOL IN INDONESIA
To ensure workers’ voices are heard, we want to foster Freedom of Association (FoA) and signed the
Indonesia FoA Protocol.
The main objectives of the Freedom of Association Protocol are:
• Eliminate the practice of union busting in the factory and to foster healthy industrial relationships
• Factory management and union leaders can identify violations and challenges around FoA that arise in
the factory and are able to discuss solutions together
• Avoid victimisation of union representatives and members when disputes arise between union members
and management
• Set up fair rules for the implementation of FoA by having a joint understanding and commitment
between workers and the factory management
• To have extra layer of rules and regulations related to FoA practice that is not regulated in Law
No. 21/2000
As of end of 2023, seven Tier 1 factories have agreed to apply the FoA Protocol with 13 unions. Two factories
are planning to sign up in 2024, while the remaining ten Tier 1 suppliers either do not have a union or their
union is not a member of FoA Protocol. As of end of 2023, no FoA case within PUMA suppliers has been
escalated to the FoA Protocol national committee. FoA cases are mainly resolved internally at a factory level
without PUMA’s involvement.
WAGE ISSUE IN KARNATAKA
On February 19, 2020, the state government of Karnataka increased the Variable Dearness Allowance (VDA),
requiring manufacturers to pay workers Rs. 417.56/month as a component of their wages, from April 2020
onwards. The VDA is calculated based on the increase or decrease in the consumer price index (CPI) to help
employees in the public and private sector to cope with the rising cost of living due to inflation.
The Karnataka labour department deferred the payment of VDA (as per the VDA Hike Order) until
March 2021 due to the financial hardships caused to employers during COVID-19. Two unions challenged the
deferral order and filed two petitions in August 2020. On September 11, 2020, the Karnataka High Court
announced that the Labor Department’s postponement of the wage increase was illegal as per Section 26(2)
of the Minimum Wages Act. This means that non-payment could be seen as being in contempt of such a
court order. In practice, factories paid Rs. 622.44/month VDA to workers from April 2021, but they did not pay
Rs. 417.56/month to workers from March 2020.
We have actively been working with our sourcing and suppliers in the region, informing our three suppliers
that PUMA expects suppliers to pay the incremental minimum wages (considering both the 2020 and 2021
VDA adjustment), including arrears to both existing and former workers. We aligned our expectations of
suppliers with the Worker Rights Consortium and kept informing them on our progress. In 2023, $ 484,928
was paid to 13,687 workers, including both existing and former workers. We verified payment on-site, except
for one factory onboarded in April 2023, where a visit is scheduled in early 2024.
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FAIR INCOME
TARGET DESCRIPTION:
• Make sure all PUMA employees are paid a living wage
• Carry out fair wage assessments including mapping a specific wage ladder for top five sourcing
countries to help improve their wage levels and practices
• Ensure bank transfer payment to workers at all core suppliers by 2022
• Ensure effective and freely elected worker representation at all core Tier 1 suppliers
Relates to United Nations Sustainable Development Goals 1, 2 and 10
KPIs:
• Percentage of average wages compared to minimum wage
• Percentage of workers with permanent contracts
• Percentage of workers with social insurance coverage
• Percentage of workers paid via bank transfer
• Percentage of factories with freely elected worker representation
• Percentage of factories with collective bargaining agreements
• Number of countries with fair wage assessments over the last five years
For the definition of fair wages, PUMA follows the requirements for compensation set out in the Code of
Conduct published by FLA. The Fair Wage Network conducts wage assessments and evaluates the wage
systems of selected factories across 12 dimensions, focusing on five major areas: legal compliance, wage
levels, wage adjustments, pay systems and social dialogue and communication. It also assesses the priority
the wage policy takes within the company’s Human Resources policy and its Sustainability Strategy
(considered as a thirteenth cross-cutting dimension).
FAIR WAGES AT PUMA'S OWN ENTITIES
The increasing cost of living is an emerging risk for PUMA. In 2021, we purchased a license for the living
wage database of the Fair Wage Network. In 2021 and 2022, we used this database to check that a living
wage was being paid to all PUMA employees globally. In 2022, our global leadership team implemented
performance indicators - tied to bonuses - related to ensuring PUMA employees earned a living wage. The
results of this internal assessment show that in 2022 all regular PUMA employees globally who were
working full time were paid according to living wage thresholds at the regional/city level or above the Living
Wage National Adjusted Mean as defined by the Fair Wage Network. This was also the case for 2023. See
Our People section for further details.
FAIR WAGES IN THE SUPPLY CHAIN
As part of our efforts to ensure fair wage practices at the factories of our suppliers, we have defined
the failure to make a full payment of at least the minimum wage as a zero-tolerance issue. This means that
to be taken on as or to remain an active PUMA supplier, a company must pay minimum wages in full
compliance with local regulations. 99.97% of workers in 2023 were paid at least minimum wage. Provisions
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80
around the payment of overtime hours and social insurance are also clearly articulated in PUMA’s Code of
Conduct and are scrutinised regularly as part of our Compliance Audit Programme. The performance of
PUMA‘s suppliers in other Fair Wage dimensions is also assessed through fieldwork assessment surveys
(among both the workers and management) carried out by the Fair Wage Network.
DIGITAL PAYMENT
In 2023, 100% of our core factories paid 224,444 employees digitally. We are further expanding the digital
mapping to all Pakistan factories, where 1,742 employees from four suppliers are not yet paid digitally. We
will follow up in 2024.
FAIR COMPENSATION DASHBOARD
We have collected wage data annually from our core Tier 1 factories for several years. We use this data to
report S-KPIs (see table T. 12). In 2022, we used the FLA’s Fair Compensation Dashboard* to analyze 2021
wage data for 59 strategic Tier 1 factories, and 2022 wage data for 60 strategic Tier 1 factories in 2023. We
use the Dashboard to compare aggregated and anonymised data from industry peers and, where available,
against living wage estimates of the Global Living Wage Coalition (GLWC), developed by the Anker Research
Institute**. Where GLWC estimates are not available, namely in Indonesia, we used 2022 Fair Wage Network
benchmarks***.
Graph G.10 shows the results of our benchmarking for 60 core Tier 1 factories in local currency, covering
wages in 2022. This data covers approximately 75% of PUMA’s global production volume for 145,834
workers employed under those suppliers. 32 factories paid a living wage to 83,089 workers in Cambodia,
China, Pakistan and Vietnam, covering 45% of PUMA’s global production volume. Those 83,089 workers
represent 13% of our total supply chain workforce.
Below is our analysis of the results:
• All of our five strategic factories in Cambodia, one out of two strategic factories in Pakistan, 13 out of 18
strategic factories in China and 13 out of 20 strategic factories in Vietnam pay, on average, a living wage
as set by the Global Living Wage Coalition. For Vietnam, as the GLWC provided a breakdown of the living
wage benchmark into four different levels instead of two previously, seven Vietnam factories out of 20 fell
below GLWC benchmarks. These seven factories now have a higher living wage level to reach.
• One supplier in the Philippines, which is below GLWC benchmark, will go through a Fair Wage
Assessment in 2024.
• In Indonesia, all strategic factories went through Fair Wage Assessments or Remediations. One of the
factories received the Fair Wage Certificate. At two factories re-assessed after remediation, we saw
improvements in their scores on the 12 Fair Wage Dimensions, especially on prevailing wage, real wages,
communication and social dialogue. These actions were taken between 2022 and 2023, which explains
why there is a wage gap towards a living wage. We will keep following the remediation actions of these
four core factories in Indonesia.
* Industry average wage data from the FLA Fair Compensation Dashboard from November 2020 and October 2021. Users of the
FLA’s Fair Compensation Dashboard have access to live anonymised monthly average net wage calculations based on all
wage data uploaded per country and year. Averages are updated as wage data is uploaded into the dashboard and includes
the Net Wage = Basic (Contracted) Wage + Cash Benefits + In-Kind Benefits – Mandatory Taxes and Legal Deductions.
Payment of overtime is excluded.
** Global Living Wage Coalition: The GLWC estimates and reference values are developed by the Anker Research Institute. The
methodology for these estimates uphold the definition of the living wage, which includes the standard remuneration received
by a worker for a workweek, in a particular place, to afford a decent standard of living for the worker and his/her family.
Elements of a decent standard of living include food, water, housing, education, healthcare, transportation, clothing and
other essential needs, including provision for unexpected events.
***Fair Wage Network methodology: It takes into account the minimum living wage necessary for a worker to cover his/her
family's basic needs considering multiple income earners in the family (the necessary family budget being covered by the
sum of income earners). FWN also proposes a more ambitious living wage threshold that would consider one income earner
and not multiple income earners. PUMA used multiple income earners thresholds in our fair wage analysis.
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• The Turkey factory’s net pay has increased by 55% compared to 2021 due to the high inflation. We plan to
enroll this factory for a Fair Wage assessment in 2024 to evaluate its wage system, so the factory can set
up an action plan and workers’ income can increase.
• One supplier in Pakistan reached the Global Living Wage Coalition Benchmark. Another supplier
reached 97% of the GLWC benchmark. We will launch Fair Wage Remediation with the latter in 2024.
• Wage payments in Bangladesh, despite being above industry average, fell well short of the Global Living
Wage Coalition Benchmark and reached 67% of the Global Living Wage Coalition Benchmark in 2022;
(70% in 2021, 69% in 2020).
In 2023, we conducted Fair Wage Assessments with ten factories in Bangladesh, Pakistan, Indonesia,
Cambodia and China, including seven re-assessments at factories in Bangladesh, Cambodia, Pakistan and
Indonesia and three first-time assessments at two suppliers in China and one in Bangladesh.
↗ G.10 FLA FAIR COMPENSATION DASHBOARD 2020 – 2022
FAIR WAGE ASSESSMENT
Since 2018, we have asked Fair Wage Network (FWN) to conduct fair wage assessments at our core factories
based in Bangladesh (2018), Cambodia (2019), Cambodia and Indonesia (2021), Bangladesh,
Vietnam, Pakistan (2022), and China (2023) at 27 factories in total. Six factories obtained a Fair Wage
Certificate, meaning that across the 13 dimensions of Fair Wage, wage and overtime payment,
communication, and social dialogue for example, factories received at least 280 points out of 400 with no
more than two dimensions below a 40% score, and workers are paid above the Fair Wage Network Living
Wage threshold.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
PUMA Average
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
PUMA Average
2021 (1/14)
2022 (1/10)
Turkey
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
PUMA Average
Indonesia
0
500
1000
1500
2000
2500
3000
3500
PUMA Average
China
0
50
100
150
200
250
300
350
PUMA Average
Cambodia
0
5000
10000
15000
20000
25000
30000
35000
40000
PUMA Average
Pakistan
0
5000
10000
15000
20000
25000
PUMA Average
Bangladesh
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
PUMA Average
Vietnam Rural
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
PUMA Average
Vietnam Urban
Net Legal Minimum Wage 2022
Industry Average 2022
GLWC Benchmark
FWN living wage
Philippines
2020 (1)
2021 (5/15)
2022 (4/31)
2020 (3)
2021 (18/122)
2022 (18/112)
2020 (16)
2022 (1)
2020 (1)
2021 (2/2)
2022 (2/11)
2020 (2)
2021 (5/36)
2022 (5/13)
2020 (4)
2021 (8/31)
2022 (9/57)
2020 (7)
2021 (11/122)
2022 (12/107)
2020 (7)
2021 (9/122)
2022 (8/107)
2020 (6)
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A positive outcome is that factories are strong in some institutional elements such as wage grids,
monitoring the wages’ cost progression within the total production cost (including involving worker
representatives to discuss and negotiate wage related issues and paying wages above competitors’ rates
and above companies from other sectors located in the same area. However, similar developments were not
always reported on in collective agreements, which have rarely been signed at the factory level, and
monitoring process for moving towards the payment of a living wage. These insights still provide valuable
information for follow-up and remediation in these factories. Worker satisfaction with wages and working
conditions was found to be relatively good, with most workers being either ‘fully’ or ‘partly’ satisfied with
their wages and working conditions. At one supplier, however, it was found that nearly half of the workforce
were not satisfied with the working conditions, we will follow up on this in 2024.
In 2023, out of 10 factories that went through a fair wage assessment, six were re-assessed after a nearly
one-year remediation phase with the support of Fair Wage Network (three in Bangladesh, one in Cambodia
and two in Indonesia). All six factories improved significantly in communication and social dialogue, wage
structure and also competitiveness. Under the Fair Wage Network Remediation Framework, social dialogue
activities took place at those six factories and the wage structure was jointly reviewed as a result. Although
wage adjustment mechanisms were improved, there is still room for improvement as regards the living
wage. At the three factories assessed for the first time, we will work with the Fair Wage Network to further
improve their wage strategy and pay systems. One factory in Pakistan was re-assessed as they previously
had reached the GLWC living wage threshold. The factory has not yet received fair wage certification
although its score has improved.
The Fair Wage Remediation programme provides a remediation plan to factories based on their individual
assessments, and guides factories in setting up a Fair Wage Implementation Committee (consisting of
workers and management representatives). The Committee is trained by the Fair Wage Network, on fair
wage dimensions, wage grid, and how to a conduct living wage survey. The committee is responsible -under
FWN guidance- for implementing the remediation plan.
In Indonesia, both factories under the remediation programme opened a dialogue channel with trade unions
to negotiate the pay systems. One supplier included a seniority bonus into its basic wage, 90% of workers
had a 0.46%-1.15% wage increase since January 2023; the factory also provided 14% to 28% as skill bonuses
to workers having the ability to operate more than one machine. Another supplier pays workers higher than
the legal requirement, providing a seniority bonus of 0.42%-0.48% of the minimum wage to workers who
have worked more than one year, and providing a skill bonus that ranges from 0.65% to 16.34% of the
minimum wage. All of these measures improve not only the fairness but also the efficiency of pay systems.
In Bangladesh, all three suppliers developed training modules and trained almost 100% of the workers
using a skills matrix for all the designations. This ensures that workers’ wages increase in step with human
capital developments (people skill development, working experience, creativity, strengths and attributes)
and that the promotion system is fair and transparent. Training programmes were also provided to both
management and workers on their roles and responsibilities based on the skills matrix and its connection to
wage increases. Suppliers also looked at the gap between workers’ gross income and the living wage, and
took initiative to minimize this gap. For example, one supplier introduced a fair price shop on the premises
of the factory, so that the workers get the daily products they need at an affordable price, allowing workers
to keep part of their wages for other needs. As a result of actions taken by our suppliers, we witnessed an
improved dialogue between workers and factory management on the topic of wages. Workers, in one of
three factories, formed a Trade Union during the remediation, so workers will be able to better coordinate
their workforce concerns through this platform. We got to understand that the management of this
particular supplier was highly supportive of the Trade Union’s creation, and it was found that their
concerned parties are currently engaged in a congenial relationship.
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In Cambodia, with the involvement of the Fair Wage Implementation Committee, the factory that started its
remediation programme in mid-2022, reviewed its wage structure by creating more bonuses such as
productivity bonuses and multi-skill bonuses. All of these are contributing to an almost 6% wage increase
on average for about 3% (122) of qualified workers. This helped the factory to stabilize its workforce, with a
14.8% reduction of annual staff turnover in 2022 and a further 68.5% reduction in 2023.
↗ CASE STUDY
Bangladesh
A factory in Bangladesh was assessed by Fair Wage Network team in 2018 to evaluate its wage
practices. The factory could not be certified, joined the Fair Wage Remediation Programme in 2022
and was re-assessed at the end of the programme in 2023. The company has developed a rather
comprehensive wage policy.
One of the major improvements was in ‘Communication and social dialogue’. A committee,
consisting of an equal number of representatives from management and workers, was formed to
implement a remediation plan. The workers’ representatives on the committee were engaged in the
decision-making process while developing and implementing the skills matrix, performance
evaluation processes, for example. A robust communication strategy was set, ensuring that
employees are well-informed about their wage levels and pay structures. The company set up a
social dialogue policy, allowing representatives of workers to be involved in discussions and
negotiations on wage matters. The intention is for these negotiations to lead to regular talks on
wage issues and the possible endorsement of a collective agreement in future. The improved labour
relations led to a 0.5% reduction in the staff turnover rate.
In March 2023, while the remediation programme was underway, the workers at the factory created a
Trade Union. This action suggests that the workers recognise the potential benefits of having a
collective organisation to represent their interests. By establishing the Trade Union, the workers
have created a structured platform that allows them to collaborate more effectively on matters of
collective concern. Currently, approximately half of the workers of the factory are members of that
Trade Union. The factory is working with Better Work Bangladesh, who provide training for both
management and union members on their roles and responsibilities under the Labor Law.
GENDER PAY GAP
For the first time in 2023, we collected wage data by gender. There is no wage gap between female and male
workers on a global average. We notice a difference of a few cents of Euros per hour in Pakistan, China,
Cambodia and Turkey, mainly because factories are paying higher wages for working positions, such as
polishing, or in warehouses that require the use of chemicals or heavy lifting and are positions
predominantly filled by male workers.
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↗ T.10 GENDER PAY GAP
1-2
2023
SOUTH ASIA
SOUTHEAST ASIA
EMEA
2023
Social KPI
Bangladesh
Pakistan
China
Cambodia Indonesia Philippines
Vietnam
Turkey
Average
Hourly average gross
wage excluding overtime
and bonuses (%)
(female-male)*
0.0
-0.2
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
Hourly average gross
wage including overtime
and bonuses (%)
(female-male)*
-0.1
-0.2
-0.1
0.0
0.0
0.0
0.0
-0.1
0.0
Number of factories
8
2
18
5
4
1
18
1
57
*
New KPI
1
Data received from 57 PUMA core suppliers representing 72.1% of 2023 production volume, 72.4% of 2023 production value;
reporting period for data collection: January 2023 – October 2023 (November and December 2023 were calculated based on
the estimation method)
2
Wage gap calculation – Average of total female workers’ hourly gross wage – Average of total male workers’ hourly gross
wage
RECRUITMENT FEES
PUMA signed the Fair Labor Association/American Apparel and Footwear Association Commitment to
Responsible Recruitment in 2018. Since then, we have been actively involved with suppliers, industry peers
and the UN’s International Organization for Migration (IOM) to ensure that the labour rights of foreign and
migrant workers are upheld in our supply chain.
We map on a yearly basis if our factories employ foreign migrant workers and how much workers paid in
recruitment fees. We then engage with our sourcing leaders, supplier top management, and in some cases
other brands the supplier produces for, to come up with an agreement on a timeline to pay migrant workers
back. The back payment could in certain cases be made in different instalments and not a lump sum to not
disturb the factory as not all workers are entitled to this payment – an issue which could lead to
misunderstandings between workers.
Through the efforts of multi-stakeholder engagements, factories paid back more than $ 100,000 to 255
foreign migrant workers at six factories in Japan, South Korea, China (Taiwan) and Thailand in 2022. PUMA
has used e-learning from the International Organization for Migration in employer guidelines to train 36
factories from Mauritius, China (Taiwan), South Korea, Thailand and Japan in 2022. In 2023, we kept
monitoring factories’ recruitment practices.
In May 2023, we found that eight foreign migrant workers had paid recruitment fees before starting to work
at three factories (two core Tier 2, one non-core Tier 2) in Taiwan; through communication with factories and
support from our sourcing team, over $ 16,000 in total was paid back to these workers.
During an audit at one South Korea factory, we found that one worker had paid $ 370 for a flight ticket from
their home country to South Korea. The factory immediately reimbursed this worker after the audit.
During audits conducted at the end of 2023, we found that 12 migrant workers had paid a total of
approximately $ 33,000 before they started to work at three factories in Japan. Two factories agreed to pay
back a total of $ 23,109 to nine migrant workers in January 2024; we will terminate our business relationship
with the third factory which refused to reimburse workers since it is in breach of PUMA’s standards. We will
phase out this supplier by June 2025, so that they have sufficient time to find another customer to replace
PUMA’s business and to avoid impacting workers’ employment.
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In 2023, the IOM trained PUMA’s Sustainability Team in the following areas:
• How fair and ethical recruitment due diligence can help prevent and mitigate adverse human and labour
rights for migrant workers.
• Practical knowledge on how to apply Ethical Recruitment Due Diligence Tools, particularly the supplier
Self-Assessment Checklist, Corrective Action Plan, and the Interview Questionnaire for Migrant
Workers.
• Features and functions of the Ethical Recruitment Due Diligence tools as a trainer.
In 2024, the IOM will further support PUMA to develop suppliers’ guidelines regarding responsible migrant
workers recruitment and working conditions. These will be included into our Social Standards and
translated into all relevant languages. PUMA’s Sustainability Team will train our suppliers who employ
foreign migrants on these new requirements.
↗ T.11 FAIR INCOME TARGET STATUS
Sub-targets
2023
Baseline 2020
Target 2025
Digital payment (% of core Tier 1 and Tier 2 suppliers)
100%
90%
100%
% of workers that are receiving wage payments digitally
100%
*
100%
Percentage of core Tier 1 supplier facilities that have trade unions or
freely elected worker representation (core Tier 1)
66%
33%
100%
Fair wage assessments
(Mapping of a specific wage ladder for top five sourcing countries)
5 out of 5
2 out of 5
5 out of 5
*
No baseline in 2020
2022-2023 PUMA PLWF REPORT: LEADING
The Platform Living Wage Financials (PLWF) is a coalition of 20 financial institutions
that engage and encourage investee companies to enable living wages and incomes in
their global supply chains. The 2022-2023 PLWF report presents the annual
assessments of investee companies on living wage and responsible purchasing
practices. In 2023, PUMA was the only company that reached the Leading category for
its work on fair income, out of 31 companies from the Garment and Footwear sector.
SUPPORTING LEGAL MINIMUM WAGE INCREASE IN BANGLADESH
In 2023, PUMA received a letter from four Bangladeshi Unions calling for support for minimum wage to
increase, through social dialogue, and by making a long-term commitment to continue sourcing from
Bangladesh.
PUMA answered through a public statement recognizing that the current legal minimum wage in the
Ready-Made Garment sector is significantly below a living wage. In this statement, we share PUMA’s
standards regarding legal minimum wage, overtime and social insurance payment-related issues, as well
as our continuous monitoring and methodology, regarding living wage benchmarks and assessments. We
reiterated the importance of freedom of association and collective bargaining as a key means through which
employers, their organisations and trade unions can establish fair wages and working conditions. We also
supported the FLA’s letter shared in August 2023, which appeals to the Chairman of the Minimum Wage
Board to champion local union demands for increases in the minimum wage.
In October 2023, PUMA also joined other FLA-affiliated brands to ask the government to consider that the
minimum wage consultations should be made in an environment to support dialogue with relevant
stakeholders and Unions, seek to raise the minimum wage to a level that is sufficient to cover workers’
basic needs and some discretionary income and takes into account inflationary pressures, while ensuring
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that the minimum wage is reviewed annually. Signatory brands are AEO, Inc. Abercrombie & Fitch, adidas,
Amer Sports, Burton, Gap Inc., Hugo Boss AG, KMD Brands, Levi Strauss & Co., lululemon, Patagonia,
PUMA SE, PVH Corp, SanMar and Under Armour.
In both letters, PUMA shared its commitment to implement Responsible Purchasing Practices to support
negotiations and wage increases and to continue sourcing in Bangladesh.
WORKER REPRESENTATIVES PROJECT
Effective social dialogue and sound industrial relations are key components of achieving decent work.
Ensuring effective and freely elected worker representation in all core Tier 1 suppliers is among our
10FOR25 Sustainability Targets. PUMA encouraged our suppliers to join the ILO Better Work Programme,
which coaches the factory management to create or work with an existing bipartite or worker/management
committee to discuss and resolve workplace issues on an ongoing basis.
For factories that are not part of the Better Work programme, we partnered with Timeline Consultancy, a
China-based consultant experienced on improving worker-management cooperation, who trained PUMA’s
Sustainability Team in 2022 and 2023. Our PUMA Sustainability Team gained the ability to independently
promote the establishment of an effective Worker Representative Committee and to evaluate
its effectiveness.
Since 2022, 12 factories in China have established a Worker Representative Committee. 358 worker
representatives were freely elected by production workers, 59% of which are female workers. For a better
understanding of the worker-management dialogue mechanism, 380 representatives of factory
management were trained by PUMA’s Sustainability Team on the Significance of Dialogue and Worker
Representation before the worker representative election. After the election, all these factory management
and worker representatives were trained on their roles and responsibilities, rights and obligations, how to
conduct adequate information sharing and how to establish a dialogue mechanism, which enables open
dialogue between factory management and worker representatives.
In 2023, we expanded the programme to include two Vietnamese factories and one factory in Indonesia:
worker representative elections will be held in three factories in 2024.
SOCIAL-KPIS
On average, our core suppliers paid basic wages that exceed minimum wage levels by 12.7% in 2023. When
adding overtime and bonus payments, our core suppliers pay 62.7% above minimum wage. In view of the
global macroeconomic situation, which has led to a change in customers' ordering behaviour, we saw a
decline in the order book in the first half of 2023 and stabilisation during the second half of 2023; as a result,
overtime working hours decreased on average by 2.4 hours per week compared with 2022, which explains
why the percentage of gross wages (including overtime and bonuses) above minimum wage decreased
compared with 2022. At the same time, in 2023, the minimum wage increased over a 12-month average by
104% in Turkey, by 11% in Pakistan, by 2% in Indonesia, by 4% in the Philippines, by 3% in Cambodia and 0.3%
in China. For Bangladesh the new minimum wage came into effect on the first of December 2023, and
increased by 56%.
100% of workers are covered by social insurance in all countries except for China where 80.4% are covered:
this represents a 4.4% increase compared to 2022 due to factories making an effort to explain the benefits of
the programme and convincing workers to join social insurance schemes. The total average coverage with
social insurance increased from 97% to 97.5%.
In 2023, 32.3% workers are covered by a collective bargaining agreement (in 2022 34.4%). This number
decreased as one of our suppliers in Indonesia with a CBA dropped off our core supplier list.
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The percentage of women in managerial positions increased slightly to 50.4% (in 2022 49.1%) as some
factories reached their goals of increasing the number of females in managerial roles.
The percentage of permanent workers increased from 74.2% to 76.7% on average, mainly due to labour law
changes in Cambodia, under which more workers get an Undetermined Duration Contract (UDC), after
completing a two-year Fixed Duration Contract (FDC). In addition, since there was a decrease in orders
during the first half of 2023, factory management teams recruited fewer temporary workers.
The turnover rate decreased due to factories implementing worker retention programmes. However, in
countries such as Pakistan, Indonesia and Turkey turnover rates increased due to downsizing business or
workers entering into retirement.
The average injury rate was reduced to 0.2% (0.3% in 2022). We followed up on action plan implementation
after various OHS trainings, such as Accident Prevention and Reporting training, conducted by PUMA since
2021. In view of the 2023 global macroeconomic situation, which led to a change in customers' ordering
behaviour, we saw a decline in the order book in the first half of 2023 and stabilisation during the second
half. This led to a downturn in working hours, fewer temporary workers being recruited and potentially
fewer risks of injury. This could also explain why the injury rate decreased this year.
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↗ T.12 SOCIAL KPIS PUMA CORE TIER 1 FACTORIES 2020-2023
1-3
2023
SOUTH ASIA
SOUTHEAST ASIA
EMEA
2023
2022
2021
2020
Social KPI
Bangladesh
Pakistan
China
Cambodia
Indonesia Philippines
Vietnam
Turkey
Average
Gross wage paid above minimum wage
excluding overtime and bonuses (%)
23.6
33.2
5.9
6.1
1.3
0.0
31.4
0.4
12.7
13.4
14.5
13.0
Gross wage paid above minimum wage
including overtime and bonuses (%)
58.6
38.9
166.6
63.3
38.3
18.0
93.3
24.9
62.7
71.0
80.2
54.7
Workers covered by social insurance (%)
100.0
100.0
80.4
100.0
100.0
100.0
100.0
100.0
97.5
97.0
95.1
95.6
Overtime (hours per week)
6.0
0.3
13.5
4.9
4.5
6.0
3.5
3.8
5.3
7.7
8.3
5.4
Workers covered by a collective bargainning
agreement
0.0
0.0
93.3
40.0
25.0
0.0
100.0
0.0
32.3
34.4
37.2
26.9
Female managerial position (%)
7.4
7.7
56.3
64.6
73.8
76.9
71.2
45.3
50.4
49.1
NA
NA
Female workers (%)
42.0
9.7
61.6
83.1
82.8
63.9
76.2
58.5
59.7
60.0
59.5
58.8
Permanent workers (%)
100.0
100.0
28.6
62.7
99.2
77.2
45.6
100.0
76.7
74.2
75.5
74.4
Annual turnover rate (%)
27.3
32.9
52.8
41.9
26.5
15.1
39.9
34.8
33.9
35.6
34.0
29.9
Injury rate (%)
0.3
0.0
0.4
0.3
0.3
0.0
0.1
0.5
0.2
0.3
0.3
0.4
Hourly average gross wage excluding
overtime and bonuses (%)
(Female-Male)*
0.0
-0.2
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
Hourly average gross wage including
overtime and bonuses (%)
(Female-Male)*
-0.1
-0.2
-0.1
0.0
0.0
0.0
0.0
-0.1
0.0
Number of factories
8
2
18
5
4
1
18
1
57
65
63
58
* New KPI
1
Data received from 57 PUMA core suppliers representing 72.1% of 2023 production volume, 72.4% of 2023 production value; reporting period for data collection: January 2023 – October 2023
(November and December 2023 were calculated based on the estimation method)
2
Injury rate calculation – Number of OSHA Recordable cases X 200,000 / Number of Employee Labor hours worked
3
Wage gap calculation – Average of total female workers’ hourly gross wage – Average of total male workers’ hourly gross wage
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HEALTH AND SAFETY
TARGET DESCRIPTION:
• Zero fatal accidents
• Reduce accident rate to 0.5 at PUMA and at suppliers
• Building safety operational in high-risk countries*
Relates to United Nations Sustainable Development Goal 3
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Expand building safety projects to include Indonesia
• Ensure professional risk assessments are conducted regularly
KPIs:
• Number of fatal accidents at Tier 1 and core Tier 2 factories
• Average injury rate at PUMA
• Average injury rate at core Tier 1 suppliers
• Number of factories subject to our Building Safety Assessment Programme
Ensuring safe working conditions for our own employees and hundreds of thousands of indirect employees
at our manufacturing partners is an ethical imperative. In 2015, we set a target of zero fatal accidents and
aimed to reduce the number of work-related accidents. In 2021, we revised our Supplier OHS handbook,
requiring our manufacturing partners to conduct an OHS risk assessment. We also published the PUMA
OHS Policy for our own employees. Our health and safety targets are linked to the bonuses of our global
leadership team.
HEALTH AND SAFETY AT PUMA’S OWN ENTITIES
At our headquarters, we operate an occupational Health and Safety Committee, that oversees our health
and safety management system. The Committee includes a specialised labour physician, a health and safety
technician and employee representatives. In 2023, we certified our OHS management system according to
ISO 45001 at the headquarters level.
To ensure a global implementation of our health and safety policy, our larger subsidiaries have their own
health and safety committees or experts in place. For more than ten years, we have been able to record zero
fatal accidents at our own entities globally. We have also kept the lost time injury rate below 0.5 since 2019,
meaning that per 100 full-time employees, less than 0.5 accidents were recorded, in line with our targets.
*
High-risk countries are defined by the building safety index which is based on instances of non-compliance associated
with building approval, multi-tenant building, structural integrity, ventilation/ heating, and warehouses.
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In 2023, this target was supported by continuing our Occupational Health and Safety e-learning. Over 80% of
PUMA staff members globally participated in health and safety training to prevent injuries or work-related
negative health effects.
In addition, we offer sports facilities, canteens with balanced food and work-life balance courses at our
major offices globally. For more information on employee wellbeing please refer to the Our People section
of this report.
HEALTH AND SAFETY IN THE SUPPLY CHAIN
Apart from our ongoing auditing programme that includes occupational health and safety assessments, we
implement our Building Safety Assessment Programme in countries where we have identified risks. We also
set up professional risk assessments at all our major manufacturing partners. Despite these preventive
measures, unfortunately, a work-related accident resulted in the death of an employee in one of our
suppliers’ factories in India in 2023. We will keep our focus on Occupational Health Safety accident
prevention.
SUPPLIER TRAINING ON OHS RISK ASSESSMENT
In 2021, we updated our OHS Handbook to guide the OHS risk assessment processes and tools for the
factory management and OHS person in charge.
PUMA provided training to core Tier 1 and Tier 2 suppliers on how to conduct Occupational Health and Safety
(OHS) risk assessments in 2021 and 2022. We followed up on progress with an on-site visit by a third-party
auditing company.
In 2023, among the trained factories, we noticed fewer violations related to Chemical Safety Management (-
3%), and Electrical and Mechanical Safety Management (-2%) compared to 2022. However, we noticed more
violations related to noise pollution. We will explore how to improve together with suppliers in 2024.
In 2023, the PUMA Sustainability Team developed accident prevention and reporting training based on the
ITC-ILO material and provided Train-the-Trainer sessions to 266 managerial staff at 102 factories (core Tier 1
suppliers and all factories in India and Sri Lanka). Trained factory managers provided this training to 115,588
workers in 59 factories. Training hours were 117,695 in total. Some of the factory managers received the
training in late 2023, we will follow up on their workers’ training in 2024.
4,364 workers from eight factories in Cambodia and Indonesia completed the Better Work e-learning course
on Occupational Safety and Health via the WOVO mobile app, covering 51% of the employees in these
factories.
BUILDING SAFETY ASSESSMENT AND RISK ASSESSMENT
A safe workplace is a top priority at PUMA and we continuously carry out building safety inspections among
high-risk factories in our supply chain. From 2015 to the end of 2023, our Building Safety Assessment
Programme covered Bangladesh, India, Indonesia and Pakistan.
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↗ T.13 BUILDING SAFETY ASSESSMENT PROGRAMME
Country
Number of factories Comments
Bangladesh
21 Part of our ongoing membership of the Bangladesh Accord
India
6 In partnership with AsiaInspection or Elevate
Indonesia
5 In partnership with AsiaInspection
Pakistan
3 In partnership with Elevate
In 2023, we used EIQ to map all sourcing countries where building safety is considered as high risk. As a
result, two factories in Indonesia and four factories in India were identified as high-risk. The four factories in
India already went through a Building, Electrical and Fire Safety Assessment (BEFS) in 2022, conducted by
ELEVATE. A similar assessment was conducted in the two Indonesian factories in 2023. Through active
engagement with these four suppliers in India, 69% of the findings had been remediated by the end of 2023.
We will keep following up to ensure all findings are taken care of.
Five factories went through building safety inspections in Indonesia, two in 2023 and three in 2018. We
continued following up on remediation at the three factories. Two factories obtained building safety
certificates issued by the government, and one will be certified in early 2024.
↗ CASE STUDIES
Building Safety in India
A factory under the largest footwear supplier in India, underwent the Building, Electrical and Fire
Safety Assessment by a third-party inspection firm, Elevate, in 2022, as well as a follow-up
inspection in 2023.
75 findings were identified at the initial assessment, 22 of them categorised as Major Issues. PUMA
conducted an onsite follow-up with factory management, who then agreed to engage with experts to
conduct feasibility studies and implement corrective actions. Over $ 41,000 was invested to install
fire-fighting equipment, strengthen the building structure, do panel modifications, etc. As a result,
92% of findings had been corrected during the follow-up inspection in September 2023. The rest of
the findings require more time to remediate. PUMA will follow up with the supplier in 2024.
ACCORD
As part of its continued commitment to the ACCORD international programme, PUMA signed the Pakistan
ACCORD in early March 2023. Seven supplier factories joined the programme, including two of the three
factories that were previously assessed by ELEVATE and other third parties. Another factory in scope of this
programme was on-boarded in mid-2023, we are now applying for this factory to join the ACCORD.
Two factories are not under the scope of Pakistan ACCORD programme, as these are not textile product
manufacturers. One of these factories was on-boarded in the last quarter of 2022 and will go through an
assessment in 2024. The second factory went through a Building, Electrical and Fire Safety Assessment
(BEFS) conducted by ELEVATE in 2017 and 2021. Since then, the factory management has hired a
professional third party to support the remediation of the open findings. In 2024, this factory will be re-
assessed to measure progress.
Our factories in the ACCORD in Bangladesh have a completion rate (initial findings) of 94%, whereas the
average rate of all factories in the RSC programme is 91%. Eight (out of 21 ACCORD active) factories
achieved 100% remediation of the initial findings. Another seven factories achieved 90%-98% remediation of
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the initial findings. Six out of 21 factories were at low completion rates (0%-89%): two did not receive a follow
up inspection by ACCORD in 2023, two were newly onboarded to ACCORD, and two were delayed in
remediation of the findings. We will keep working with those factories on ACCORD remediation plan in 2024.
ACCIDENTS
In 2023, we unfortunately reported an employee death resulting from a work-related incident at one of our
suppliers’ factories in India. An electrician fell from the factory’s roof, as neither a secured ladder was used
nor a harness rope was installed. After 55 days of hospitalisation, the worker’s health deteriorated, leading
to his death. The factory paid all medical expenses and the legal compensation, as well as an additional
lump sum to the worker's family. An investigation and Hazard Risk Assessment were conducted by an
independent expert. Following this assessment, safety equipment including a harness hook was installed on
the rooftop, staff training on hazards and risks was provided and enhanced monitoring of potential unsafe
conditions was implemented to prevent similar accidents. We deeply regret this tragic accident which
caused the loss of this employee’s life.
INJURIES
The average injury rate was reduced to 0.2%. We followed up on factories' action plan implementation after
various OHS trainings, such as Accident Prevention and Reporting training, conducted by PUMA since 2021.
Given 2023’s global macroeconomic situation, which led to a change in customers' ordering behavior, we
saw a decline in the order book in the first half of the year and stabilisation in the second half. This led to
fewer working hours, and fewer temporary workers recruitment, meaning less risks for injury, this could
also explain why the injury rate decreased this year.
↗ T.14 INJURY RATES AT CORE SUPPLIERS
Country
2023
2022
2021
2020
Bangladesh
0.3
0.6
0.5
0.4
Cambodia
0.3
0.4
0.3
0.2
China
0.4
0.3
0.3
0.6
Indonesia
0.3
0.2
0.2
0.2
Vietnam
0.1
0.1
0.1
0.2
Average*
0.3
0.3
0.3
0.4
Fatal accidents**
1
2
0
0
*
Average of the five countries included in this table. Global average injury rate for PUMA’s core suppliers in 2023 was 0.2.
** Including non-core suppliers.
BANGLADESH EMPLOYMENT INJURY SCHEME PILOT
Despite significant progress on the way towards decent and safe working conditions in the ready-made
garment industry in Bangladesh, it lacks a comprehensive Employment Injury Scheme (EIS) in accordance
with international standards as defined in the ILO Employment Injury Benefits Convention. To mitigate that
gap the Bangladesh Government initiated a pilot programme to provide income replacements for the
permanently disabled and the dependents of deceased workers. The ILO and GIZ collaborated in the project
and agreed on the implementation as well as the transition to a permanent EIS after three to five years.
The EIS provides periodic payments/pensions as top-ups to the lump-sum payments of the Central Fund,
rendering the level of benefits compatible with ILO Convention No. 121. These payments are financed by
international brands.
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PUMA signed the voluntary pledge for the Employment Injury Scheme pilot in Bangladesh to contribute to
safeguarding decent living conditions for victims and their families. PUMA joined in early 2023, together with
seven other brands. We are actively engaged with the project not only by providing financial support, but
also by providing feedback for learning.
According to EIS data on 31 December 2023, the pilot has responded to 13 death cases. The EIS committee
has disbursed a total of 932,766 BDT, equivalent to 5,241 BDT as a monthly compensation, directly to the
family members affected by this tragedy. The pilot has responded to eight permanent disability cases, with a
total estimated lifelong benefit of 5,837,724 BDT.
As per EIS policy, factory and workers are kept anonymous, so we have no way to know if the families of the
two workers who passed away as reported in our 2022 Annual Report, have received such a benefit.
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ENVIRONMENT
The purpose of our environmental efforts is to ensure that PUMA and its suppliers are in full environmental
compliance and that any negative impact on the environment is minimised. Over the last ten years, PUMA
has not incurred any environmental violations or fines known to us. Ultimately, we are aiming for a positive
environmental impact of PUMA and our supply chain on the environment.
ENVIRONMENTAL MANAGEMENT AT PUMA’S OWN ENTITIES
We conduct energy efficiency audits every four years at our own entities. In 2023, we commissioned 19 audits
at PUMA offices, stores and warehouses in Germany, the Netherlands, France, Spain and Sweden.
Compulsory in the European Union, these audits help us to identify energy-saving opportunities at our
offices, stores and warehouses and roll them out globally. In 2023, for example, we replaced some lights at
our headquarters with more energy-efficient LED lights.
In 2022 we achieved the ISO 14001 Environmental Management certification for our headquarters and
published a stand-alone environmental policy. We also compiled and published an environmental handbook
specific to our own offices, stores and distribution centres. We continued our global data collection and
management processes for our own entities and set up a quarterly subsidiaries call for peer learning and
good practice sharing. These calls are also used to re-emphasize our Sustainability Strategy and goals with
our PUMA countries worldwide. The progress towards those goals is reported in this report.
ENVIRONMENTAL MANAGEMENT IN THE SUPPLY CHAIN
ENVIRONMENTAL RISK ASSESSMENT
In 2023, we developed a Civil Society Organisations (CSOs) engagement policy to engage with them
reactively and proactively. Please refer to the Due Diligence and Risk Assessment section of this report.
In 2023, we conducted an environmental risk assessment using EiQ platform by Elevate. EiQ is a data-driven
supply chain ESG due diligence platform used by businesses to enhance Environmental, Social, and
Governance (ESG) risk management. We focused on two risk areas; firstly, environmental country
risk exposure for supply chain and secondly environmental material risk exposure.
COUNTRY RISK EXPOSURE
We evaluated the environmental risk profile of our key sourcing countries. In 2023, the six most important
sourcing countries, comprising 90% of the total volume, are located in Asia. China is the biggest production
country in 2023 with a total of 30%, followed by Vietnam is the second biggest production country with 26%,
Cambodia with 13%, Bangladesh, which focuses on apparel, at 12%, Indonesia with 5% and India – only
serving the local market at 3%.
The parameters for the country risk include indexes such as air emission, environmental management,
waste management, environment permits and wastewater violations. The supply chain risk environmental
profile indicates that Indonesia and the Philippines are extreme-risk countries, whereas other key sourcing
countries like Vietnam, China, Bangladesh, India and Cambodia are high-risk countries. Taiwan is a
medium-risk country from supply chain environment risk. For environmental permits violations, Indonesia
and Bangladesh are indicated as extreme-risk countries.
The risks mitigation measures in place for extreme-risk and high-risk countries, excluding India include;
factory performance evaluation through Higg FEM verification, chemical management following ZDHC
guidelines, compliance to ZDHC Wastewater Guidelines and core factories’ participation in cleaner
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production programmes, capacity building training programmes, supplier scorecard with E-KPIs followed
by meetings with these core suppliers.
Publicly disclosed goals on reduction in water consumption, reduction in production waste to landfill and
increased use of renewable energy help to track the performance of core suppliers and hence help to
mitigate environmental risks. In China, the country with the largest sourcing volume in 2023, our suppliers
have been disclosing their environmental performance data on The Institute of Public & Environmental
Affairs (IPE) platform.
India production is only serving the local Indian market, and we have prioritised compliance with our Zero
Tolerance Issues. We have not yet launched mitigation measures such as Higg FEM verification,
chemical management following ZDHC guidelines, and compliance to ZDHC Wastewater Guidelines to all
factories. We will gradually enroll these factories in these programmes in the coming years. In 2024, we will
strengthen our existing measures to improve the environmental performance of supplier factories. We will
focus on the transition to Higg FEM 4.0 which is a more exhaustive evaluation. It will help factories to
further improve their performance and in turn help PUMA to manage its environmental risks. We plan to
discuss the results of this risk assessment with our sourcing teams for business consideration.
MATERIAL RISK
We evaluated the environmental risk of our key materials such as cotton, polyester, leather & rubber. The
environmental risk covers water use, non-GHG air pollutants, terrestrial ecosystem use, soil pollutants,
solid waste and water pollutants. The results indicate that material environment risk is highest for natural
rubber, followed by synthetic rubber and leather. Polyester has the lowest environmental risk. Furthermore,
we mapped our sourcing share by country of these materials.
Cotton: In 2023, we sourced 63% of cotton from the USA, followed by Brazil (15%), Australia (8%) and India
(4%). The USA is a high-risk country while Brazil and India are extreme-risk countries; Australia is a
medium-risk country. The risks are water use, air pollution and biodiversity and ecosystem.
We have required our suppliers to source only cotton grown in farms that are licensed as having good
farming and human rights standards (BCI), or recycled cotton from factories that are either Global Recycled
Standard (GRS) or Recycled Claim Standard (RCS) certified by 2025.
PUMA is taking steps to mitigate some of the environmental risks associated with cotton sourcing which
includes the adoption of BCI cotton, increased usage of recycled cotton, innovation to increase the share of
recycled cotton in our products, conducting Life Cycle Assessments of products and materials to evaluate
the environmental impact in lifecycle stages and engaging with the industry such as Textile Exchange to stay
informed on industry best practices.
We collect material data consumption on an annual basis along with the country of origin and require our
suppliers to keep all the supportive documentation available. We have also established an on-going due
diligence programme with our partner laboratory in Germany where we regularly test samples of cotton-
finished garments before shipment. This further strengthens traceability and control across our supply
chain, from the raw material to the finished products.
Through our partnership with Better Cotton, we support farmers in developing a better understanding of
Integrated Pest Management and phasing out the use of Highly Hazardous Pesticides (this helps to
address improper disposal of used agrochemical containers which can contaminate air, soil, water and
local ecosystems), to use water responsibly, to better protect the soil and to conserve and enhance
biodiversity on their land. Better Cotton has set up goals to reduce greenhouse gas emissions by 50% per
ton of Better Cotton lint produced by the end of the decade, ensure 100% of Better Cotton Farmers have
improved the health of their soil and reduce the use and risk of synthetic pesticides by at least 50%.
In 2023, the share of BCI cotton was 90.3% and recycled cotton was 8.6% of total cotton sourced by PUMA.
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Polyester: We sourced 79% of our polyester from China in 2023, followed by Taiwan at 9.2% and Vietnam
at 7.4%. China is a high-risk country. Risk profiles for polyester from Vietnam and Taiwan are not available
on the EIQ platform. High-risks are air pollution, water use and solid waste.
We have required our suppliers to source only polyester-certified by Bluesign/Oekotex, or recycled polyester
from factories that are either Global Recycled Standard (GRS) or Recycled Claim Standard (RCS) certified by
2025. PUMA has joined the Textile Exchange polyester challenge since our 2025 goal of 75% recycled
polyester is aligned with this challenge. We engage our core fabric manufacturing plants in energy
efficiency programmes and support them to the transition to 25% renewable energy processing in 2025. We
monitor and report chemical discharges, and work to eliminate pollutant chemicals.
In 2023, we sourced bio-based, high-performance polyester fibre known as Sorona, to up to 0.11% of our
total polyester consumption. Sorona contains over 20% bio-based carbon content, which helps to reduce
environmental impact, while maintaining quality and performance. Sorona is produced via a fermentation
process that utilizes corn sugar as the main ingredient.
In 2023, 61.8% of the polyester used in our products was recycled, 23.3% certified by Bluesign/Oekotex and
0.11% biobased.
Leather: In 2023, we sourced, 61% of our leather from the USA, followed by Argentina 27%, Australia 6% and
Brazil 5%. The USA, Brazil and Argentina are high-risk countries, while Australia is a medium-risk
country. High risks are air pollution, water use and impact on ecosystem.
PUMA is taking several steps to mitigate environmental risks associated with leather sourcing. These
include sourcing leather from Leather Working Group-rated tanneries, committing for sourcing
deforestation-free bovine leather, and focusing on innovation for the development of recycled and other bio-
based alternatives. We engage with Fashion Pact, Textile Exchange and the Leather Working Group (LWG)
to remain updated about industry best practices.
We have committed to sourcing all the bovine leather used in our products from verified deforestation-free
supply chains by 2030 or earlier. We have signed up for the Deforestation-Free Call to Action for
Leather, launched by global non-profits Textile Exchange and LWG.
99.7% of the leather that PUMA sourced in 2023 is from Leather Working Group-certified tanneries. This
means that the leather used in PUMA products comes from manufacturers who are working to implement
industry good practice standards of environmental management and traceability. PUMA currently monitors
its LWG medal-rated tanneries’ upstream traceability performance.
Around 76% of the leather used at PUMA is Suede, a byproduct of the full-grain leather business. The
challenge faced currently by PUMA and others in the industry is that most suede tanneries work with agents
and intermediaries alongside direct tanneries, to guarantee a stable supply which creates a challenge
to have full traceability at the cattle ranch level.
Our innovation team has worked to address the technological limitations of a shoe designed for composting
and launched the RE:SUEDE experiment. The upper of the RE:SUEDE is made of Zeology tanned suede.
Synthetic Rubber: We sourced, 74% of our synthetic rubber from China, followed by Vietnam 14% and South
Korea 4%. China and South Korea are high-risk countries. The risk profile for synthetic rubber from Vietnam
is not available on the EiQ platform. High risks are greenhouse gas emissions, water use and solid waste.
We have not yet mapped the manufacturing plants supplying synthetic rubber to our outsole manufacturers.
As part of our 10FOR25 targets, we work on developing recycled materials as alternatives to rubber. In 2023,
5% of synthetic rubber was recycled. We engage our strategic outsole suppliers in Higg FEM (environmental
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performance tool measurement of which includes energy use and greenhouse gas emissions, water use,
wastewater, emissions to air and waste management) and work with them to eliminate pollutant chemicals.
Natural Rubber: In 2023, we sourced 29% of natural rubber from Vietnam, followed by Brazil 25%,
Pakistan 13%, and Thailand 5%. Vietnam is categorised as an extreme-risk country. Risk profiles for natural
rubber from Brazil, Pakistan and Thailand are not available on the EiQ platform. High risks are mainly water
use and impact on the ecosystem.
In 2023, only 2% of the rubber used in our products was natural rubber. We aim in the future to only source
FSC-certified rubber. The FSC certification includes standards to maintain, conserve, and/or restore the
ecosystem and environmental values of managed forests and also avoid, repair, or mitigate negative
environmental impacts.
SUPPLIER ENVIRONMENTAL SCORECARD
In 2023, we developed environmental performance scorecards for core supplier factories to visualize their
progress towards our 10FOR25 targets and 2022 goals. During one-to-one meetings, we explained the need
for setting Science Based Targets to 21 selected suppliers, we reviewed the 2022 Environmental KPIs (E-
KPIs) for 60 suppliers and discussed their 2023 plans; the need for participation in cleaner production and
renewable energy programmes for some factories was also discussed. Environmental KPIs include Higg
FEM score, FEM chemical module score, MRSL conformance rate, wastewater test results, percentage of
renewable energy usage, greenhouse gas emission per product or volume of material, percentage of water
consumption reduction (per product or volume of material), percentage of production waste sent to landfill
(per product or volume of material).
These meetings were useful for understanding the challenges of our suppliers and for prioritizing our
actions to support them. Key meetings outcomes:
• Alignment on setting Science-Based Targets (SBT): In summer 2023, 20 out of 21 selected suppliers
agreed to set climate goals based on SBT methodology. In these meetings, we followed up our suppliers
decision to set up SBT. In October 2023, in partnership with Guidehouse, we launched a capacity
development programme for eight suppliers called Leadership on Climate Transition (LoCT), to support
suppliers in this journey. In 2024, this programme will be expanded to other suppliers who do not have
sufficient in-house or external expertise.
• Enrolment in cleaner production programmes: Factories were nominated to participate in Cleaner
Production programmes based on their performance through E-KPIs and the expertise of their team
members. In August 2023, Clean by Design (CbD) program phase three was launched in the China and
Taiwan region for seven factories. A new programme called Resource Efficiency (REF) in partnership
with ENERTEAM was started in Vietnam in August 2023 for four factories. The Cambodia Decarbonization
Programme (CaDP) with IFC will be launched in early 2024 for four factories in Cambodia.
• Enrolment in renewable energy programmess: Suppliers shared their plans to complete feasibility
studies or install rooftop solar systems. In the absence of adequate rooftop solar capacity, RECs
purchases were discussed. The suppliers also highlighted their challenges. Subsequently, GIZ-PDP
programme phase II was rolled out in Cambodia in February 2023 for one factory and in Vietnam in
March 2023 for four factories to support rooftop solar installation.
• Phase-out of coal-fired boilers: We discussed this challenging goal with the relevant suppliers to align
on a phase-out plan. Suppliers raised their concerns about the unstable availability of biomass, the
absence of sustainable biomass guidelines, and the increased cost of natural gas. We will bring these
challenges to the Fashion Charter working group to find solutions to address them.
• Higg FEM Performance: Discussions focused on FEM (Facility Environmental Module) score. We also
acknowledged improvements made by factories with an increased score in 2022 (2021 FEM score). We
aligned on the need for additional training and/or support, such as one-to-one support for low
performing factories to improve their score. 210 factories in total were provided training on Higg FEM in
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2023. As a result, the average 2022 FEM score of core factories improved to 69% from 61% (2021 FEM
score).
• Chemical Management: we focused on the factories with low compliance with MRSL standards and
ZDHC Wastewater Guidelines. We aligned with factories on the need to bring in chemical suppliers
disclosing their chemicals to the ZDHC gateway, a platform used to upload factory chemicals inventory
lists and measure their MRSL conformance rate. In February 2023, we invited chemical suppliers to join
the training session on ZDHC MRSL conformance. We also worked with some key chemical suppliers to
support them in complying with ZDHC MRSL standards. As a result of the efforts, the MRSL
conformance rate has increased from 68% in 2022 to 71% in 2023, and the average Higg FEM Chemical
module score improved from 39% in 2022 to 51% in 2023. For factories with low ZDHC Wastewater pass
rate tests, we discussed their corrective action plans. In 2024, we will continue to engage them to get
more chemicals to comply with ZDHC MRSL.
FACTORY ENVIRONMENTAL PERFORMANCE MONITORING
Social compliance audits: For suppliers, our PUMA social compliance audits (detailed in the Human Rights
section) contain a dedicated section on environmental and chemical compliance. For example, during each
audit, we inspect environmental permits, waste management and effluent treatment plants. In general,
PUMA social compliance audits are used for onboarding new factories.
Monitoring tools: For monitoring the environmental performance of suppliers, PUMA has used an industry-
wide tool, the Higg Index Facility Environmental Module (FEM) 3.0. PUMA requires an annual external
verification of the self-assessment FEM modules. This external verification may be completed by approved
verifiers from PUMA’s internal team, other credited brands, or third-party organisations on the approved list
from SAC. 100% of verification inspections are announced.
PUMA’s Environmental Performance Rating System is based on the ratings developed from the factories’
Higg FEM score verified by SAC-approved verifiers: A, B+, B-, C and D. The minimum passing grade from
the environmental perspective is 40% (i.e., only A, B+ and B- ratings are passing grades) and C and D are
failure ratings. This rating system was presented to suppliers in 2022 and implemented gradually during
2022 and 2023. Our environmental handbook has been updated accordingly. This rating system was included
in our vendor supplier scorecard along with social and chemical ratings.
↗ T.15 NUMBER OF CORE FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM) VERIFIED
SCORE
1
2023
2022
Number of factories with FEM verified score
Core T1
Core T2
Core L&P
Core T1
Core T2
Core L&P
A
14
12
3
8
10
2
B+
34
33
8
25
25
1
B-
9
11
2
30
22
7
C
1
3
0
2
8
2
D
1
0
0
0
0
0
Total
59
59
13
65
65
12
Number of factories
131
142
*
L&P: Labeling and packaging
1
Excluding stichd and PUMA United
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↗ T.16 NUMBER OF STICHD FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM) VERIFIED
SCORE
No. of factories with FEM verified score
stichd 2023 (FEM2022)
Core T1*
A
5
B+
15
B-
7
C
2
D
0
Total
29
*
stichd has 32 core Tier 1 factories of which 30 have completed verification. One core factory is a common factory between
PUMA and stichd and hence counted once under PUMA
Further data on the environmental performance of PUMA and our suppliers can be found in the Climate and
Environmental Key Performance Data sections.
↗ G.11 AGGREGATED VERIFIED FEM SCORE FOR PUMA FACTORIES BENCHMARKED WITH
INDUSTRY
1-3
*
Verification in 2023 is for FEM2022; Verification in 2022 is for FEM2021
1
FEM 2022 PUMA and stichd average: 160 factories
2
FEM 2021 PUMA average: 142 factories
3
Industry median FEM (6,980 factories): Filters used: Industry sector: Apparel; Footwear; Accessories (includes handbags,
jewellery, belts, and similar products) and Facility Type: Final Product Assembly; Printing, Product Dyeing and Laundering;
Material Production (textile, rubber, foam, insulation, pliable materials); Packaging Production
The Higg FEM assesses:
• Environmental Management Systems
• Energy use and greenhouse gas emissions
• Water use
• Wastewater
• Emissions to air (if applicable)
• Waste management
• Chemical management (FEM chemical module is explained under the Chemicals section of this report)
61
74
42
69
89
73
45
68
79
49
74
92
82
53
57
73
37
64
82
68
40
Total
Water
Air
WWT
Energy
EMS
Waste
FEM 2021 PUMA average
FEM 2022 PUMA & stichd average *
Industy median FEM 2022
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Since 2020, we have communicated to our core factories our expectation for them to improve their score by
setting up annual goals and using our new grading system. In 2021, 2022 and 2023 we facilitated training
sessions conducted by FEM experts. This training was compulsory for low-performance factories and for
those not familiar with this industry tool to attend. We closely monitor the factories to ensure completion of
the verification of their self-assessment.
Throughout 2023, we continued to provide customised training sessions by FEM experts for our existing core
Tier 1 and Tier 2, as well as non-core Tier 1 suppliers. The training focused on how to improve the Higg FEM
score on low-performing areas for each region. We also facilitated entry-level training sessions for factories
new to the Higg FEM tool. These trainings have helped our suppliers improve their environmental
performance as is visible from the improved average FEM score for PUMA and stichd factories moving from
61% in 2022 up to 68% in 2023. We also facilitated for our suppliers to attend webinars and workshops on
Higg FEM 4.0 to be launched in 2024, organised by SAC. In Vietnam, we facilitated for 61 factories to join the
training programme, To The Finish Line (TFL) initiative, from GIZ for building capacity to transition to Higg
FEM 4.0. The TFL initiative online sessions explained the changes made in this new tool and how to answer
new questions. 26 core factories from six countries participated in a Higg FEM 4.0 pilot initiated by SAC,
after which our suppliers provided valuable feedback to SAC on the new version of Higg FEM.
In 2023, all 131 PUMA core Tier 1 and Tier 2 factories completed the verification of their FEM self-
assessment. We have set a target to achieve an annual 10% increase of the average verified score from 2021
(the goal was to reach 64% FEM score in 2023). We exceeded this target by achieving an average FEM score
of 69%. Improvements are visible in all the sections of Higg FEM as compared to the previous year. PUMA’s
average FEM score is higher than the industry median in each section. In 2023, we included our group
company stichd’s core Tier 1 Higg FEM score. The combined average of PUMA and stichd also exceeded by
achieving the target with an average score of 68%.
The number of C-rated PUMA factories came down from 12 in 2022 to four in 2023. However, one factory in
Brazil which is a new core factory and new to FEM received a D rating. We will provide additional training
and support to improve their performance next year.
In 2023, we continued to closely track factories to ensure the timely completion of their verifications. We saw
the positive impact of our continued efforts to scale up cleaner production and renewable energy projects,
climate action training, chemical projects, chemical management training and wastewater treatment
training on the FEM scores of factories that had joined these programmes. For 2024 we have shared a goal
of an average FEM score of 71% with our PUMA core suppliers, which needs to be reviewed as the Higg FEM
will be going through a transition to Higg FEM 4.0.
Overall, our core factories have a score above 70% on wastewater, water, energy and GHG emissions, and
environment management systems. We see topics like chemicals, air and waste as a key focus. In 2021, we
conducted a risk assessment for chemical and waste and identified actions to be taken in the coming years.
PUMA, as one of the signatory brands under ZDHC, follows up closely on the development and the progress
of ZDHC air emission standards and guidelines and will apply them in the supply chain as applicable, once
details are available. In 2023, we joined the ZDHC air emission pilot which we report in the Water and Air
section of this report.
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↗ T.17 NUMBER OF NON -CORE FACTORIES WITH FACILITY ENVIRONMENT MODULE (FEM)
VERIFIED SCORE
No. of factories with FEM verified score
2023 (FEM2022) verified
Non Core T1*
A
18
B+
36
B-
36
C
15
D
4
Total
109
*
Scope for non-core FEM assessment includes only PUMA factories. Does not include stichd non-core factories.
In 2022, we rolled out FEM/Facility Environmental Foundation (FEP) which is a lighter version of FEM, to
non-core factories in our top three sourcing countries (Vietnam, China and Bangladesh) and to the factories
which are participating in the PUMA Vendor Financing Programme. As a continuation, in 2023 we rolled out
FEM/FEP to 154 of our non-core factories. The purpose is to also create a supplier scorecard for our non-
core factories.
Out of 154 factories, 141 completed the self-assessment. Out of these 141 factories, 116 factories used the
FEM tool, and 109 had their score verified by third party. 25 factories used the FEP tool, and 21 have
completed the verification. Most of our non-core facilities that had a verified FEM achieved an A or B rating,
while 15 factories got a C rating and four factories recorded a D rating. We will work with these C- and D-
rated factories to improve their performance by providing training and support in 2024.
Further data on the environmental performance of PUMA and our suppliers can be found in the Climate and
Environmental Key Performance Data sections.
SUPPLIER TRAINING
32% of supplier factories out of the total (656 factories) were provided with Higg FEM training. Currently we
are providing training to core Tier 1 and Tier 2, for which we set goals to increase their FEM score and non-
core Tier 1 factories for which we just required the use of FEM/FEP tool to measure their environmental
performance (in additional to their social performance) in 2023. We will expand the roll-out of the FEM/FEP
tool to licensee factories in the future and will include FEM training for stichd factories in 2024.
The Finish Line (TFL) training by GIZ for Higg FEM 4.0 was only available in Vietnam and hence the
percentage of total supplier factories covered is only 9%.
Similarly, the percentage of factories coverage is only 15% for sustainable material certification training, as
we currently only invite PUMA Tier 1 and core Tier 2 factories supplying recycled and other sustainable
materials/products. We need to expand the scope of this training to include all suppliers in the future to
raise awareness of recycled and other sustainable materials, as we aim at increasing the use of more
sustainable materials in our products.
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↗ T.18 SUPPLIER TRAINING
Training
Training Scope
Topics
Number of
factories
Number of
participants
% factories
which joined
Supplier meetings
All core and non-
core factories
Sustainability updates, best
practices sharing, etc.
559 average
per round
(2 rounds)
1,048
average per
round
(2 rounds)
85%*
average per
round
(2 rounds)
Higg FEM training
PUMA core and non-
core Tier 1
factories
Guiding existing factories to
improve Higg FEM score and
new factories to understand
how to complete the Higg
FEM/FEP module correctly
210
600
32%*
To The Finish Line
(TFL) - GIZ
PUMA core and non-
core factories in
Vietnam
Developing understanding
about changes in Higg FEM
4.0 and helping factories to
transition into new standard
61
294
9%*
Sustainable
Material (TE,
GRS/RCS, RWS)
PUMA Tier 1 and
Tier 2 factories
supplying recycled
and other
sustainable
materials and
products
Guiding suppliers how to
apply for relevant
certification
96
198
15%*
E-KPIs collection
training
Core Tier 1 and Tier
2 factories
in Enablon scope
For core factories how to
correctly fill in the
environmental data
75
188
77%**
*
% of factories joined the training based on total 656 factories. The 656 factories include PUMA core Tier 1 and Tier 2, non-
core Tier 1, stichd factories and licensee factories.
** % of factories joined the E-KPI training, based on a total of 98 factories which are in scope to submit E-KPIs.
↗ CASE STUDIES
Improvement in HIGG FEM Verified score
Being a longtime partner to PUMA, Royal Footwear Group is producing PUMA products at three
factories in Vietnam (Dai Loc Shoes, Sao Viet & Thien Loc Shoes). These three factories actively
participated in different trainings on all sections of Higg FEM provided by PUMA and its training
partner GIZ, and engaged in active consultation with PUMA’s Sustainability Team on its Performance
Improvement Plan. As a result, these three factories significantly improved their verified Higg FEM
total scores as compared to last year. Dai Loc increased its total verified score from 56% to 76%, Sao
Viet from 40% to 77%, and Thien Loc from 46% to 75%. Significant improvements were made in
sections like Environmental Management System, Chemical Management and Air Emissions.
THE INSTITUTE OF PUBLIC & ENVIRONMENTAL AFFAIRS (IPE) IN CHINA
PUMA is actively engaged with The Institute of Public & Environmental Affairs (IPE) which is a non-profit
environmental research organisation based in Beijing, China. IPE is involved in collecting, arranging and
analyzing government and corporate environmental information to build a database of environmental
information. IPE has developed a database called Blue Map and an online platform called BlueEcochain and
both are interconnected. Powered by IPE's Blue Map Database and AI technology, Blue EcoChain platform
provides an efficient means of supply chain oversight for environmental risks in China. Blue EcoChain
enables PUMA to track its suppliers in China for environmental compliance at scale, and sends automated
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updates on regulatory violations and environmental remediation, as well as carbon emission and pollutant
data disclosure continuously on a large scale.
Since 2013, PUMA has used IPE’s Blue Map database to screen its China supply chain and pre-screen its
potential new factories for any legal environmental violation and requires suppliers to improve on their
environmental performance. PUMA also discloses its local supplier list via the IPE supply chain map
platform. In these years, PUMA engaged and influenced its Tier 1 factories in China and their upstream
suppliers, e.g. core Tier 2 and selected Tier 3 suppliers, chemical suppliers, centralised wastewater
treatment plants, solid waste contractors, logistics partners, etc. to join “Blue EcoChain” to monitor and
disclose their own environmental performance. These disclosures include their Pollutant Release and
Transfer Register (PRTR) data, carbon emissions, targets for carbon emissions, and water consumption
reduction. PUMA worked with its core Tier 1 and Tier 2 factories to reduce their greenhouse gas emissions
and encourage them to disclose their action taken and progress made on the IPE platform.
Through the Blue EcoChain platform and engagement with IPE, PUMA influenced its Tier 1 suppliers and
their upstream suppliers to promptly issue public explanations regarding the reason for any environmental
violations and encouraged them to adopt corrective actions and track their implementation. This
supports PUMA Tier 1 factories in China to engage with their upstream suppliers for better practices and
promote transparency.
Since 2021, PUMA published its actions annually on the Brand Stories IPE webpage to communicate to the
public in China about PUMA's activities related to environmental protection.
2023 PUMA CITI & CATI RATINGS
PUMA participated in the first CITI (Corporate Information Transparency Index)
campaign in 2014 and first CATI (The Corporate Climate Action Transparency
Index) campaign in 2018 to score and rank PUMA’s environmental management
and climate action.
In 2023, PUMA jumped seven places compared to 2022 and was ranked number five in CITI out of 742
brands. In the CITI 2023 rating, PUMA did well in responsiveness to inquiries and engagement with IPE,
supply chain transparency, environmental compliance and corrective actions for any violations, energy
conservation and GHG emission reduction. PUMA’s strength is also in publicly disclosed targets on low
carbon and recycled products.
PUMA also jumped four places to be ranked number two in CATI out of 1,504 brands. In this rating, PUMA
climate governance such as policy and board accountability, Scope 1, 2 and 3 emissions and progress
disclosure and targets, as well as product carbon footprint disclosure and disclosures on decarbonisation
actions of our value chain was evaluated as strong areas by IPE. Disclosure of climate action by affiliated
companies, such as the PUMA subsidiary in China, was identified as a major improvement area. Other
improvement areas include the disclosure of our performance against PUMA’s net-zero target and our
action to decarbonize our own operations such as PUMA offices, stores and warehouses.
The details on our climate actions are provided in the Climate section of this report.
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CLIMATE
1OFOR25 TARGETS
• Align PUMA’s CO2 emissions target with a 1.5-degree scenario (that is, what is required to limit global
warming to 1.5 degrees)
• Move 100% of PUMA’s own entities to renewable electricity
• Expand the use of renewable energy at PUMA’s core suppliers to 25%
TARGET DESCRIPTION:
Old science-based CO2 emission target from 2019 aligned to well below 2 degrees:
• Reduce greenhouse gas emissions from PUMA’s own entities (Scope 1 and 2) by 35% by 2030 compared
to the 2017 baseline (absolute reduction)
• Reduce emissions from PUMA’s supply chain (Scope 3: Purchased goods and services) by 60% relative to
sales
New and 1.5 degree aligned science-based CO2 emission reduction target (approved 2023):
• Reduce absolute Scope 1 and 2 greenhouse gas emissions by 90% by 2030 from a 2017 base year
• Continue active annual sourcing of 100% renewable electricity through 2030
• Reduce absolute greenhouse gas emissions from purchased goods and services and upstream
transportation and distribution by 33% by 2030 from a 2017 base year*
*
Target boundary includes land-related emissions and removals from bioenergy feedstocks
Relates to United Nations Sustainable Development Goals 7 and 13
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Work with industry peers on climate action through the Fashion Industry Charter for Climate Action and
the Fashion Pact
• Join industry-level energy efficiency programmes for suppliers in our top five sourcing regions
• Join industry-level programmes for renewable energy in our top five sourcing regions
• Replace all coal-fired boilers at PUMA’s core suppliers
• Reduce emissions from the transport of goods by transitioning to more carbon-efficient modes of
transport
• Gradually transition to materials with a lower carbon footprint such as recycled polyester
• Switch all PUMA offices, stores and warehouses to renewable electricity tariffs or renewable energy
attribute certificates
• Gradually move PUMA’s fleet vehicles to alternative engines (electric or hydrogen)
KPIs:
• Direct CO2 emissions from own entities (Scope 1*)
• Indirect CO2 emissions from own entities (Scope 2*)
• Indirect CO2 emissions from manufacturing, business travel and transport of goods (Scope 3*)
• Percentage of core suppliers covered by energy efficiency programmes
• Percentage of core suppliers covered by renewable energy programmes
• Percentage of core suppliers with coal-fired boilers (Tier 1 and Tier 2)
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*
The GHG Protocol Corporate Standard classifies a company's GHG emissions into three scopes:
•
Scope 1: Direct GHG emissions from sources that are owned or controlled by the company (offices, stores, warehouses)
e.g. office building heating, car fleet emissions.
•
Scope 2: Indirect GHG emissions from the generation of purchased electricity, steam and heating/cooling consumed by
the company
•
Scope 3: All other indirect emissions not covered in Scope 2, such as extraction and production of purchased materials;
transportation of purchased goods and use of sold products and services, business travel, employee commuting, etc.
During the UN Climate Conference in Paris in 2015, PUMA agreed to set a science-based CO2 emissions
target. In 2018 PUMA co-founded the Fashion Industry Charter for Climate Action, an industry-wide coalition
that aims to align the fashion industry’s emissions with the targets included in the Paris Agreement. One
year later, PUMA agreed and published its first science-based emission target (SBT), which was aligned to a
well below 2-degree emission scenario with the SBT Coalition and joined the Fashion Pact, which also
includes a climate action commitment.
With an 85% reduction of own emissions (market-based, incl. the purchase of RECs) and a 65% reduction of
supply chain emissions relative to sales, we achieved our first science-based greenhouse gas reduction
target in 2023, seven years ahead of the target year 2030.
In 2022, we already prepared an updated and more ambitious science-based greenhouse gas reduction target
and aligned the target with a 1.5-degree scenario. We also published a net zero target for 2050 and added a
100% renewable electricity target to our SBT proposal since we already committed to net zero GHG emissions
and 100% renewable electricity as part of our Fashion Industry Charter for Climate Action engagement. Our
updated science-based target was formally submitted to and approved by the SBTi in 2023.
With a 90% absolute reduction target for PUMA's own operations by 2030, the new target sets a much higher
ambition level for Scope 1 and 2 emissions, after the first target of 35% reduction had already been achieved
in 2020, mainly through the purchase of renewable energy and renewable energy attribute certificates. The
SBTi has classified PUMA Scope 1 and 2 targets as in line with a 1.5-degree trajectory.
For Scope 3 emissions, the new 2030 target marks the transition from a target relative to sales (-60%) to an
absolute reduction target of 33%. Given PUMA's strong growth rates, the new target could even be
considered more ambitious.
TRANSITION PLAN TOWARD OUR 2030 SCIENCE-BASED GHG REDUCTION TARGET
During the year 2023, PUMA also developed and published its first climate transition plan. The plan lists the
planned actions and investments toward hitting our 2030 climate targets.
In 2023, PUMA’s Chief Sourcing Officer joined Zero 100, a membership-based research and intelligence
organisation, to accelerate progress on Digital Supply Chain Transformation and the path to zero carbon
emissions. Forward-thinking Chief Operations and Supply Chain Officers of international companies partner
up, sharing a common purpose – to harness new technology to re-invent the production, distribution
and consumption of physical goods around the world.
PUMA CDP CLIMATE SCORE: A
The Carbon Disclosure Project (CDP) is an investor-led coalition that ranks global companies and cities for
their climate strategies and disclosure. PUMA has been a long-term participant in the CDP, and we make
our responses to the CDP questionnaire publicly available via the CDP website. In 2022, for the first time in
PUMA’s history, we received an A score for our climate disclosure with CDP for the reporting year 2021. Until
the end of January 2024, we retained our A score.
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↗ G.12 PUMA CDP CLIMATE SCORES
↗ G.13 2022 CDP INDUSTRY AND GEOGRAPHICAL AVERAGE
PUMA’s rating is better than the average performance of the sector (textile and fabric goods) with an
average rating of B. The overall global average rating stands at C.
Over the last two years, we have made significant improvements in value chain engagement, Scope 3
emissions, risk management processes and risk disclosure, leading to the highest possible rating of A. Our
score increased as a result of a host of initiatives taken, including facilitating climate training programmes
for our suppliers, the participation of our suppliers in industry-wide resource efficiency and renewable
energy programmes, participation in Higg FEM, the recalculation of Scope 3 emissions, in line with the
greenhouse gas protocol, life cycle assessments (LCA) for our products, the preparation of a climate
roadmap for 2030 and a risk assessment.
For more information, please visit the PUMA sustainability website or the CDP website.
CLIMATE ROADMAP AND RISK ASSESSMENT
In 2021 we developed a climate roadmap and conducted a risk assessment using our risk assessment
methodology. This roadmap laid the foundation for our climate transition plan, which was published in 2023.
We see a regulatory landscape with unfavourable policies for renewables in some countries as a high risk.
Furthermore, unstable business in our industry overall can restrain suppliers from investing in technologies
and upgrading their facilities with low-carbon machinery.
Below are some key focus areas for the coming years. Some actions taken since 2021 and continued in 2023
are covered in this report.
• Raise awareness: We realised that suppliers need specific training to achieve the ambitious renewable
energy targets and that challenges vary from region to region. We facilitated certain training
programmes in partnership with industry experts as per the needs of suppliers, such as the possibility of
purchasing renewable energy certificates in various regions. In 2023, we launched a new capacity
development programme, called Supplier Leadership on Climate Transition (LOCT), to enable selected
suppliers to set and achieve Science Based Targets. Our suppliers continued to attend the GIZ Climate
Training programme at their own pace in 2023. The details of these training sessions are provided in the
table in “Climate Training 2023”.
• Knowledge of impact: In 2023, we continued to conduct Life Cycle Assessments (LCA) for two top-selling
products. We also conducted a comparative LCA of three types of polyester team sports jerseys to
evaluate the environmental impacts of virgin polyester, recycled polyester made from PET bottles and
recycled polyester made from recycled post-consumer waste and PET bottles. We also conducted a
comparative LCA study of the environmental impacts of virgin cotton and blended cotton (75% virgin and
25% recycled). We intend to use the outcomes of these LCA studies to increase internal awareness and
improve the products' carbon footprint by increasing the use of low-carbon materials, improving
resource efficiency, optimizing energy use, promoting renewable energy in the value chain and
enhancing the circularity of our products. LCA results are reported in the Products section of this report.
C
2017
B-
2018
B
2019
B
2020
A-
2021
A
2022
A
2023
B
Textiles & Fabric
B
Europe
C
Global Average
Average Performance
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• Internal action: We reviewed factories’ performance scorecards in 2023 based on their Higg FEM overall
score and chemical score with our sourcing leaders. We also discussed with suppliers about their
performance through one-to-one meetings and aligned on the next steps. We initiated a pilot to test a
data platform, which will help us to measure progress more frequently. We will keep our focus on
increasing the use of recycled materials in our products and explore opportunities to use more
biosynthetic materials. In 2023, PUMA upgraded its near-term science-based emissions reduction target
which includes our Scope 1 and Scope 2 emission targets in line with a 1.5-degree Celsius trajectory. We
continue to enroll more factories in cleaner production programmes and renewable energy
programmes. In 2023, the number of core factories with coal-fired boilers reduced from 21 in 2022 to 17
due to our business priorities that implied the revision of our core factory list. Two factories out of 17
have successfully phased out coal and 11 factories have partially replaced coal. The remaining four
factories completed a feasibility study and will initiate replacement in 2024. We remain committed to
phasing out coal from our core supply chain.
• Collaboration and partnership: We will keep our active engagement in the Fashion Charter to drive
collaboration on climate actions and influence policymakers to enable access to affordable renewable
energy. In 2023, we participated in a dialogue event organised by UN Fashion Charter with Bangladesh
policymakers on renewable energy policy.
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
Climate change has been a focus area for PUMA since the publication of the first Environmental Profit and
Loss Account in 2011. As a long-term and A-ranked respondent of the investor-led CDP questionnaire and a
founding member of the UN Fashion Industry Charter for Climate Action, PUMA has shown its commitment
to combatting climate change. Subsequently, we recognise the importance of disclosing climate-related
risks and opportunities in line with the recommendations of the TCFD, which are now being transitioned into
the IFRS standards.
The success of our business over the long term will depend on the social and environmental sustainability
of our operations, the resilience of our supply chain and our ability to manage the potential impact of
climate change on our business model and performance.
Through the implementation of the recommendations set by the TCFD, we summarize the actions PUMA
has taken to review its key climate-related risks and opportunities, and the potential impacts on its business
and strategy.
GOVERNANCE
The PUMA Board of Management takes overall accountability for the management of all risks and
opportunities, including climate change. PUMA’s CEO is responsible for the overall oversight of the group’s
strategy, including the Sustainability Strategy. This includes climate-related targets as stated in PUMA’s
10FOR25 sustainability targets. Besides the oversight of the CEO, PUMA’s Chief Sourcing Officer (CSO)
oversees all sustainability-related topics at PUMA, including climate change, at the management board
level. Responsibilities of the CSO include approving new climate-related targets, strategies and initiatives.
Sustainability falls under the scope of the CSO because the vast majority of the environmental impact of
PUMA’s activity is generated during the manufacturing of our products, which are sourced from
independent third-party vendors. Therefore, to reduce our climate impact, our Sustainability Strategy needs
to be driven through our supply chain into our vendors’ factories and into the components we procure.
Responsibility for these two activities lies with the CSO.
The Supervisory Board Sustainability Committee is handling sustainability at a Supervisory Board level. The
Management Board receives updates on sustainability-related matters quarterly, including those related to
climate change. The CSO has a monthly meeting with the sustainability leads for corporate and supply chain
sustainability in which climate and all other sustainability-related topics are governed. The Executive
Sustainability Committee meets twice a year to discuss and govern cross-functional sustainability-related
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topics, like the sustainability bonus targets. It is comprised of all functional heads of the company, such as
People & Organisation, Sourcing, Finance, IT, Marketing, Risk Management, Investor Relations, Retail,
Logistics and Legal Affairs. Sustainability at a product level is governed in a cross-functional business units
call, where updates on PUMA’s more sustainable product strategy are shared and discussed monthly. To
engage with PUMA’s worldwide subsidiaries on climate change and other sustainability-related topics, the
corporate sustainability department organises a quarterly call in which the nominated sustainability leads
for each PUMA subsidiary take part.
All PUMA leaders globally – from CEO to Team Head level – have clearly defined sustainability targets as
part of their annual performance bonus. These targets are aligned with PUMA’s FOREVER. BETTER.
Sustainability Strategy and focus on our 10FOR25 target areas, including climate change. Climate-related
bonus targets include a reduction in air freight to 0.5% as well as a gradual shift of PUMA’s car fleet to zero
or low-emission vehicles. Targets on recycled polyester also support our Scope 3 GHG reduction. The
targets cover 10% of the overall bonus for members of the Management Board and 5% for other leaders
globally., with climate-related targets accounting for 2,5% and 1.25% respectively.
Our sustainability governance structure is referenced in the Sustainability Organisation and Governance
Structure section.
STRATEGY AND RISK MANAGEMENT
PUMA has analysed risks and opportunities related to climate change for over 10 years and identified
climate change as a material risk to PUMA during its last materiality analyses conducted in 2018 and 2023.
Climate Change has the potential to impact PUMA’s business in the short (0-2 years), medium (2-5 years)
and long term (5-10 years). The climate-related risks can be grouped into physical risks and transitional
risks. Physical risks for PUMA include extreme weather events, such as flooding or heat waves, or water
scarcity, which can influence raw material availability. Transitional risks include all risks related to the
transition to a low-carbon economy, such as changing consumer preferences, policies and regulations, such
as carbon taxes or rising energy prices.
The process for assessing, identifying and managing climate-related risks is the same for all principal risks
and is described in the Risk Management section. All risks are monitored and reported regularly
throughout the year by the risk owners, who are the managers of the functional areas and the managing
directors of the subsidiaries. The risk owners are also responsible for the operational management of the
identified risks. For example, climate risks concerning manufacturing in the supply chain are managed by
PUMA’s Supply Chain Sustainability team.
To identify the impact of potential climate-related risks, a scenario-based analysis of climate-related risks
was commenced in 2022 (see G.16). The analysis is in line with TCFD recommendations by taking into
consideration two different climate-related scenarios: first, to analyse transitional risks, the Net Zero
Emissions by 2050 Scenario (NZE) developed by the IEA was considered. This scenario represents the
development of a low-carbon economy in line with global warming of 2°C or lower. It was also used to
develop our 1.5°C aligned science-based target, which was submitted at the beginning of 2023. Second, the
impact of physical risks was assessed using the SSP2 – RCP4.5 scenario. This scenario relies on the
Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs) published by
the IPCC and reflects the development of greenhouse gas emissions under current government policies,
resulting in warming of about 2.7°C by 2100 (per Climate Action Tracker). The different risk categories
shown in G.16 are taken from our CDP 2023 response.
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↗ G.14 SCENARIO-BASED RISK ANALYSIS ALIGNED WITH TCFD RECOMMENDATIONS
Climate-related risks and opportunities have influenced PUMA’s strategy in multiple areas. The demand for
more sustainable products has influenced our product portfolio and sourcing practices to shift towards
recycled and/or certified materials. On the supply chain side, PUMA invests in supplier programmes
focused on energy efficiency and renewable energy to reduce the carbon footprint of its manufacturing
process. PUMA is investigating and investing further in more sustainable material options, such as
biodegradable or recyclable materials. Additionally, PUMA operates its Circular Lab, under which it
collaborates with innovation partners on different pilot projects, such as a garment-to-garment recycling
process and a biodegradable shoe. Within its own operations, PUMA reduces its carbon footprint by
sourcing 100% renewable electricity since 2020 and by gradually shifting its car fleet to low- and zero-
emissions vehicles.
Climate-related issues also had an impact on PUMA’s financial planning. Direct costs have been influenced
by ESG-linked supplier financing programmes that have been in place since 2016. The programme provides
access for PUMA suppliers to external financing resources with favourable financing conditions.
Additionally, as part of the EU Taxonomy Regulations, PUMA is required to report on capital expenditures
that lead to greenhouse gas reductions. PUMA’s sales are currently not eligible under the EU Taxonomy
Regulation due to the nature of PUMA’s business (sale of footwear and apparel). In 2023, PUMA identified
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investments in zero-emissions vehicles and infrastructure such as charging stations as well as solar PV
installations to be aligned with Taxonomy criteria. The overall Taxonomy-aligned investment amounts to
EUR 910,000. Further information on the EU Taxonomy can be found in the Reporting in Accordance with the
EU Taxonomy Regulation section. Sustainability also influences PUMA’s access to capital as it becomes an
increasingly important topic for attracting equity and investors. In 2023, PUMA received an AAA rating from
MSCI for its sustainability efforts. PUMA is also listed in the FTSE4Good Index. Our Investor Relations and
Sustainability teams are in an ongoing dialogue with investors on ESG topics. PUMA maintains a revolving
credit facility and two promissory notes, which are linked to the achievements of five ESG targets as defined
within our 10FOR25 ESG framework. The targets relate to the sourcing of renewable electricity (climate),
sourcing of materials from certified sources (biodiversity), reduction of water consumption at core suppliers
(water and air), elimination of plastic bags in stores (plastics and the oceans) and community engagement
(human rights).
The results of our scenario analysis are used to ensure the necessary mitigating controls are in place,
support PUMA’s risk management activities and inform future business strategies. We will update our
scenario modeling as more climate data becomes available and regularly reframe the risks and
opportunities to PUMA presented by climate change.
METRICS AND TARGETS
PUMA has been measuring and reporting environmental key indicators for its own operations and its T1 and
T2 suppliers for many years, including energy consumption, carbon emissions, water consumption and
waste management. These are part of the Sustainability section of its Annual Report, which is published
annually and audited by a third party.
PUMA aligns its reporting on climate-related metrics with recognised standards, including the GHG Protocol.
In addition, our 10FOR25 sustainability targets include absolute carbon reductions, renewable energy
procurement and manufacturing of more sustainable products. Further information on our environmental
KPIs can be found in the Environmental Key Performance Data section and throughout this report.
Sourcing 100% renewable electricity for all PUMA entities from 2020 is one of the milestones of PUMA’s
climate change mitigation efforts. For its suppliers, PUMA has a target of sourcing 25% renewable energy
by 2025 (2023: 22.1%). During 2023, our 1.5 degree aligned near-term SBT was approved by the Science
Based Target Initiative: reducing absolute Scope 1 and 2 GHG emissions by 90% (market-based*, including
the purchase of RECs) by 2030 and reducing absolute Scope 3 GHG emissions by 33% by 2030, both from a
2017 baseline year.
• Scope 1 and 2 targets focus on GHG emissions from our direct operations (including electricity and gas
consumption at our stores, offices, internal manufacturing and distribution centres)
• Scope 3 targets relate to indirect GHG emissions in our extended supply chain and the transportation of
finished goods
By the end of 2023, PUMA had already reduced its combined Scope 1 and 2 emissions by 85% and its Scope 3
emissions from purchased goods and services and transportation by 28%. Our efforts in sourcing more
sustainable materials led to 99.2% cotton, 99,7% leather and 85% polyester coming from recycled or
certified sources and eight out of ten products being more sustainable in line with our internal definition. We
also reduced our GHG emissions from materials by 50%.
*
A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission
factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of
energy bundled with attributes about the energy generation, or for unbundled attribute claims.
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As part of its commitment to the UN convened Fashion Industry Charter for Climate Action, and according to
PUMA’s Environmental Handbook, PUMA declared its ambitions to meet a net zero 2050 goal. PUMA
recognises that meeting its climate-related targets is dependent on collective action and focus. Improving
the market conditions for clean energy supply, such as the rate of installation of renewable electricity in
many countries, reducing costs and the availability of power purchase agreements (PPAs) will help shift the
rate of decarbonisation at scale. PUMA believes it has a role to play in helping to shape the policy and
regulations required and is working collaboratively with partners, suppliers and other organisations to
achieve its ambition, including the United Nations Global Compact, the UN Fashion Industry Charter for
Climate Action, the Fashion Pact and Stiftung Klimawirtschaft. PUMA met with representatives of the
delegations of Bangladesh, Indonesia and Vietnam during the UN COP 28 climate conference to promote the
further expansion of renewable energy in those countries.
SCOPE 1 EMISSIONS
Our own direct CO2 emissions (Scope 1) are mainly caused by emissions from our PUMA car fleet and
airplane, as well as emissions from the heating of buildings. We are tackling the emissions from our car
fleet by gradually transitioning to zero-emission vehicles in those countries where the charging
infrastructure is mature enough to support the transition. Starting in 2023, only electric vehicles are allowed
as new additions to our car fleet in the region of Germany, Austria and Switzerland, which includes our
Headquarters and 242 cars. At the end of 2023, 319 out of 905 cars (35%) globally were already low or zero -
emission battery electric or hydrogen fuel cell cars, in line with our bonus target of hitting 30%.
We also significantly expanded the charging infrastructure at our headquarters and selected other offices
and now have over 75 charging stations in operation, including twelve public charging stations at our
headquarters stores that can be used by employees, business partners and customers free of charge.
For the heating of buildings, we use natural gas in 8% of buildings globally and plan to transition these
buildings to biogas or other renewable heat sources over time. Many PUMA buildings globally already use
(renewable) electricity for heating.
Overall we were able to reduce our Scope 1 GHG emissions by 17% between 2017 and 2023, and plan to
reduce these emissions further by 2025.
SCOPE 2 EMISSIONS
PUMA’s indirect GHG emissions (Scope 2) are caused by the electricity used for running our offices, stores
and warehouses, including the charging of electric cars, as well as thermal energy used from district
heating.
All of our offices, stores and warehouses have used renewable electricity via green electricity tariffs or
renewable energy attribute certificates since 2020. This has led to a significant reduction of our Scope 2
emissions (market-based). In addition, the closure of our stores in Russia, which were mostly heated by
district heating, contributed further to the reduction of Scope 2 emissions. At our headquarters, which is by
far the largest consumer of district heat among all PUMA entities, the district heat is created in co-
generation with electricity and by using over 50% biogas. In total, we were able to reduce our Scope 2
emissions by 99% (market-based, incl. the purchase of RECs) since 2017.
Further actions to reduce PUMA’s own greenhouse gas emissions include the use of energy-efficient heat
pumps at our headquarters, frequent energy efficiency audits at our stores, a free public transport ticket for
employees, job-bike-leasing and a meat-free Monday at canteens.
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↗ T.19 SCOPE 1 AND SCOPE 2 CO2e EMISSIONS FROM PUMA
1-4
CO2e Emissions1-8 (t)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Scope 1 – Direct CO2e-
Emissions Fossil fuels*
6,403 6,206 4,456 4,179 6,326 7,678
3%
-17%
Vehicle Fleet
2,639 2,264 2,008 1,985 3,618 4,134
17%
-36%
Heating
1,336 1,536 2,039 2,194 2,708 3,545
-13%
-62%
Air Plane*
2,428 2,405 410 689 2,359
-
1%
Scope 2 – Indirect CO2e
Emissions (location-based)
41,679 35,528 32,545 29,839 40,986 40,029
17%
4%
Scope 2 – Indirect CO2e
Emissions (market-based)
530
643 1,458 1,078 11,533 40,029
-18%
-99%
Electricity (location-based)
41,149 34,885 31,087 28,761 39,282 38,914
18%
6%
Electricity (market-based)
- - - - 9,828 38,914
-100%
District heating
530 643 1,458 1,078 1,705 1,115
-18%
-52%
Total Scope 1-2 (location-
based)
48,082 41,734 37,001 34,018 47,312 47,707
15%
1%
Total Scope 1-2 (market-
based)
6,933 6,849 5,914 5,257 17,859 47,707
1%
-85%
Scope 1-2 Relative to Sales (t
CO2e per € million sales)
(location-based)
5.6
4.9
5.4
6.5
8.6
11.5
13%
-51%
Scope 1-2 Relative to Sales (t
CO2e per € million sales)
(market-based)
0.8
0.8
0.9
1.0
3.2
11.5
0%
-93%
*
In 2022, Scope 3 Upstream Leased Assets was restructured. Previously, this category included the emissions from PUMA Air
Plane and well-to-tank emissions from PUMA Vehicle Fleet. Now, in line with GHG Protocol, emissions from PUMA Air Plane
are included in Scope 1, well-to-tank emissions from PUMA Vehicle Fleet are included in Scope 3 Fuel- and energy-related
activities and Scope 3 Upstream Leased assets includes the emissions from warehouses in PUMA’s value chain that are
operated by a third party.
** A location-based method reflects the average emissions intensity of grids on which energy consumption occurs.
*** A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission
factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of
energy bundled with attributes about the energy generation, or for unbundled attribute claims. PUMA has purchased such
Energy Attribute Certificates in 2023.
1.
PUMA’s greenhouse gas reporting is in line with the GHG Protocol International Accounting Standard. Fugitive emissions
(emissions from unintentional releases or leaks) are not included in Scope 1 emissions.
2. Methodological changes over the last three years have influenced results. In 2020 updated emission factors were applied
and the consolidated structure changed due to full alignment with the GHG Protocol.
3. The consolidation scope follows the operational control approach, including PUMA-owned or operated offices, warehouses,
stores and own industrial sites (Argentina).
4. PUMA applied emission factors from internationally recognised sources, such as the International Energy Agency (IEA)
(2019) and DEFRA conversion factors (2020).
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↗ G.15 AGREED EMISSION TARGETS (SCOPE 1 AND 2*) (T CO2e) 2023
*
Including renewable energy attribute certificates
↗ T.20 E-KPIS PUMA – ENERGY
1-3
Energy (MWh)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Total energy from electricity
87,267
75,269
67,866
61,365
61,499
64,119
16%
36%
Non-renewable electricity
consumption
0
0
0
0
12,683
52,508
-
-100%
Electricity consumption from
renewable sources (green tariffs and
on-site photovoltaic)
16,032
15,697
13,749
10,839
11,547
11,611
2%
38%
Percentage of renewable electricity
consumption (excluding EACs)
18%
21%
20%
18%
16%
18%
Electricity consumption guaranteed
with EACs
71,235
59,572
54,117
50,526
37,269
0
20%
-
Percentage of renewable electricity
consumption (including EACs)
100%
100%
100%
100%
79%
18%
Total energy from non-renewable fuels
(oil, natural gas, etc.)
6,555
7,541
10,006
10,739
10,975
14,430
-13%
-55%
Total energy from district heating
4,828
5,483
10,795
6,247
7,915
5,155
-12%
-6%
Total energy consumption (PUMA own
entities)
98,651
88,462
88,666
78,350
80,389
83,704
12%
18%
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimates where no real data could be provided.
3
Methodological changes over the last three years have influenced results.
2015
2018
2021
2024
2027
2030
50,000
40,000
30,000
20,000
10,000
0
PUMA‘s emission reduction
1.5 °C pathway
Well-below 2 °C pathway
Approved SBT
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SCOPE 3 EMISSIONS
↗ T.21 PUMA’S SCOPE 3 CO2E EMISSIONS FROM SELECTED VALUE CHAIN ACTIVITIES
1-6
CO2e emissions (t)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Scope 3 – Indirect CO2e
Emissions from
corporate value chain
1,089,971 1,430,690 1,355,633 1,486,324 1,762,087 1,502,162
-24 %
-27 %
Purchased goods and
services*
991,864
1,278,758
1,242,468
1,389,335
1,631,904
1,409,265
-22 %
-30 %
Fuel- and energy-
related activities**
4,736
4,220
3,700
3,463
3,712
7,433
12 %
-36 %
Upstream
transportation and
distribution
70,412
127,474
106,983
91,775
107,744
71,070
-45 %
-1 %
Inbound
47,812
99,724
85,622
67,842
98,386
64,076
-52 %
-25 %
Outbound***
22,600
27,750
21,361
23,933
9,358
6,994
-19 %
223 %
Business travel
11,499
9,439
2,482
1,751
18,727
14,394
22 %
-20 %
Upstream leased
assets**
11,460
10,799
6 %
-
Total Scope 1-3
(market-based)
1,096,904 1,437,609 1,362,482 1,492,238 1,767,344 1,549,869
-24 %
-29 %
Annual Sales PUMA
(in € million)
8,602
8,465
6,805
5,234
5,502
4,136
2 %
108 %
Total Scope 1-3 Relative
to Sales (t CO2e per €
million sales) (market-
based)
127.5
169.8
200.2
285.1
321.2
374.7
-25 %
-66 %
Total Scope 3 Relative
to Sales (t CO2e per €
million sales)
126.7
169.0
199.2
284.0
320.3
363.2
-25 %
-65 %
*
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed higher accuracy and higher precision compared to other methods, such as
averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit) from the 12
months of data spanning from November 2021 to October 2022.
** In 2022, Scope 3 Upstream Leased Assets was restructured. Previously, this category included the emissions from PUMA Air
Plane and well-to-tank emissions from PUMA Vehicle Fleet. Now, in line with GHG Protocol, emissions from PUMA Air Plane
are included in Scope 1, well-to-tank emissions from PUMA Vehicle Fleet are included in Scope 3 Fuel- and energy-related
activities and Scope 3 Upstream Leased assets includes the emissions from warehouses in PUMA’s value chain that are
operated by a third party.
*** In 2020, upstream outbound values were adjusted to fully cover the e-commerce business and exclude B2B express volumes.
1.
PUMA’s greenhouse gas reporting is in line with the GHG Protocol International Accounting Standard. Fugitive emissions
(emissions from unintentional releases or leaks) are not included in Scope 1 emissions.
2. Methodological changes over the last three years have influenced results. In 2020 updated emission factors were applied
and the consolidated structure changed due to full alignment with the GHG Protocol.
3. The consolidation scope follows the operational control approach, including PUMA-owned or operated offices, warehouses,
stores and own industrial sites (Argentina).
4. Outsourced Tier 1 production is accounted for in the Scope 3 emissions under purchased goods and services, covering CO 2
emissions from all three product divisions (Accessories, Apparel and Footwear).
5. PUMA applied emission factors from internationally recognised sources, such as the International Energy Agency (IEA)
(2019) and DEFRA conversion factors (2020).
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6. For sea freight transportation, PUMA follows the recommendation and new methodology of the Clean Cargo Working Group
that has transitioned from the use of tank-to-wheel (TTW) CO2 to well-to-wheel (WTW) CO2-equivalent emission factors for
all fuels.
GREENHOUSE GAS EMISSIONS FROM PURCHASED GOODS AND SERVICES
PUMA is determined to reduce its carbon emissions, water usage, waste and air pollution at its offices and
in its supply chain. For materials, PUMA strives to use more sustainable materials, such as cotton,
polyester, leather and cardboard.
The purpose of PUMA’s environmental efforts is to ensure that its suppliers are in full environmental
compliance and any negative impact on the environment is reduced. Ultimately, our goal is to achieve a
positive environmental impact. We ask all of our core suppliers to complete the Facilities Environmental
Module developed by the SAC.
For climate, PUMA’s 10FOR25 action plan includes steps such as:
• Work with industry peers on climate action through the Fashion Industry Charter for Climate Action and
the Fashion Pact.
• Joining industry-level energy efficiency programmes for suppliers in our top five sourcing regions.
• Joining industry-level programmes for renewable energy in our top five sourcing regions.
• Replacing all coal-fired boilers at PUMA’s core suppliers.
• Gradually transitioning to materials with a lower carbon footprint, such as recycled polyester.
To reduce the emissions from the production of our PUMA products, we worked with our suppliers on
programmes ranging from energy efficiency to installing on-site solar photovoltaic power plants to generate
renewable energy.
The reduction of our Scope 3 emissions at the factory level is complemented by using more sustainable
(less carbon-intensive) raw materials. In 2023, we used 85% more sustainable polyester, of which 61.8% was
recycled polyester; 99.2% more sustainable cotton, mainly from the Better Cotton Initiative (BCI) and 99.7%
leather from Leather Working Group medal-rated tanneries. In addition, 99.4% of our paper and cardboard
packaging was recycled or FSC-certified paper. By 2025 we aim to use 75% recycled polyester and 100%
recycled and/or certified paper and cardboard.
Supplier Training and Programme
In 2021, PUMA joined hands with other brands and key suppliers under the UN-led Fashion Industry Charter
for Climate Action to develop a standard training programme on climate action for apparel and footwear
suppliers in Asia, in partnership with GIZ. This online training programme provides foundational knowledge
for suppliers on global decarbonisation efforts, GHG emissions accounting, climate target-setting
methodology and solutions to reduce emissions and achieve these targets. The training is available in
English and other local languages such as Khmer, Mandarin, Bengali and Vietnamese. We encouraged our
suppliers to participate in this training, available free of charge.
The training provides foundational knowledge to suppliers on:
• Understanding global decarbonisation efforts
• How to account for GHG emissions
• How to implement available energy solutions to reduce emissions
In 2023, we continued to encourage factories to join the GIZ’s Climate Action Training. 57 participants from
42 factories completed the course and attempted the final exam. 100% of the participants successfully
passed the exam and obtained the certificate from GIZ, with an average score of 75%. Since 2021, 933
participants from 284 factories have completed this course.
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In 2023, we provided training to our suppliers on Science Based Target setting, renewable energy
procurement through RECs, carbon trading and energy efficiency. This climate-related training helped to
accelerate the implementation of rooftop solar projects, increase the purchase of renewable energy
attribute certificates and initiate coal phase-out measures. The progress made in these areas are described
in this report.
In 2023, we approached 21 selected supplier groups representing 40-50% of our business volume to suggest
that they set Science-Based Targets at a company level (covering all of their factories, including the ones
not producing for PUMA). In March 2023, 19 out of these 21 suppliers agreed to set up SBT; one supplier
declined, and one supplier already had an approved target. In October 2023, we engaged with Guidehouse to
launch the Supplier Leadership On Climate Transition (LOCT) capacity development programme. The
programme provides a web-based platform to learn and implement a step-by-step approach for
setting Science Based Targets and guidance on how to achieve those targets. Nine suppliers registered to
join this programme in 2023. However, only eight suppliers joined, since one supplier selected a training
available only after a supplier has set SBT. This supplier will join the programme in 2024. We expect more
suppliers to join in early 2024. We do not expect all 20 suppliers to join this programme, since some
suppliers have the required expertise in-house or are already engaged with a consultant to support them.
The renewable energy procurement training conducted by Monsson Carbon for Vietnam, Cambodia,
Indonesia and the Philippines focused on how to procure energy attribute certificates such as iRECs, while
the training conducted by Envision in China and Taiwan focused on iREC procurement and other green
energy procurement schemes available in the region like green electricity consumption certificate (GECC).
The percentage of training participation for factories in renewable energy procurement is 53%; as it was a
refresher training in 2023, the supplier factories which have already purchased iRECs, or other forms of
green energy certificates did not join.
In 2023, a training on carbon trading provided by IMPAQ (a
third party organisation) was only relevant for
textile/fabric core Tier 2 factories located in mainland China. However, all core Tier 1 and Tier 2 factories
located in China and Taiwan regions were invited to attend for awareness about regulatory requirements in
the area. As per these requirements, heavy industries in Guangdong province with greenhouse gas emissions
of more than 10,000 tons per year or energy consumption of at least 5,000 tons of standard coal per year are
required to be included in a carbon trading scheme. Although the textile sector is one of the potential sectors
to be included, this regulation is still not enforced for the textile sector. Because of this, 53% of core Tier 2
textile factories invited attended this training, whereas only 44% of non-textile core Tier 2 factories joined this
session. However, 76% core Tier 1 factories joined this training due to better engagement with them. In total,
59% of factories invited attended this training. If the scope of these regulatory requirements expands to other
product divisions, we will continue to provide this training in the future.
For the German Training Week on Energy Efficiency programme, organised by GIZ in Vietnam, PUMA was
allocated only eight slots, and eight core factories joined the programme. Hence, the percentage of core
factories which participated relative to the total number of core factories in Vietnam (47) is only 17%.
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↗ T.22 SUPPLIER TRAINING
Training Topic
Scope
Country
Trainer
Number of
suppliers
Number of
factories
Number of
participants
% factories
trained*
Science Based
Target networking
sessions
Suppliers selected
for SBT
Global
Guidehouse/
CDP/
UNFCCC
21
48
215
100%
LOCT program
Suppliers selected
for SBT
Global
Guidehouse
8
24
23
50%
Renewable
Energy
Procurement -
iREC training/
Green Energy
All core factories
Vietnam, China,
Cambodia,
Indonesia,
Philippines,
Taiwan
Monsoon
Carbon/
Envision
36
52
94
53%
Carbon Trading
Basic Introduction
(for textile
industry in China)
All core factories
China, Taiwan
IMPAQ
27
34
48
59%
German Training
Week –
Energy Efficiency
Selected
core factories
Vietnam
GIZ
8
8
8
17%
*
% of factories trained, calculated based on the total the factories in the scope for each subject matter training
To improve the awareness level of PUMA employees, we developed a foundational e-learning training
module on climate action for all employees which is expected to be rolled out in the first half of 2024. In
2023, we launched phase 3 of Clean by Design (CbD) in the China-Taiwan region in partnership with Apparel
Impact Institute (Aii) at two core Tier 1 and five core Tier 2 factories. We also kicked off a new resource
efficiency programme called REF Programme at four core Tier 1 factories in Vietnam in partnership with
ENERTEAM. In early 2024, we will launch an IFC cleaner production programme, called Decarbonization
programme (CaDP) in Cambodia at three core Tier 1 and 1 core Tier 2 factories.
In addition to this, four Tier 1 and three Tier 2 factories participated in various rooftop solar projects in 2023.
The macroeconomic situation and overall uncertainty in the trade remained challenging during the first half
of 2023. Recession fears in various markets, persistent high inflation and elevated interest rates led to
muted consumer sentiment and volatile demand in retail. In addition, elevated inventory levels in the
market contributed to a slower sell-in to the Wholesale channel. This created less demand from the
markets, and we had to adjust our orders accordingly. This explains why we did not launch Renewable
Energy programmes in 2023 to cover 76% sourcing volume of Tier 1, 75% sourcing volume of Tier 2, and
cleaner production programme to cover 74% sourcing volume of Tier 1 and 75% sourcing volume of Tier 2,
as reported in our 2022 annual report.
The values below represent annual savings from completed and ongoing projects (PaCT programme in
Bangladesh, CbD programme in China, Indonesia, Vietnam) from 2019 until the end of 2023:
• Greenhouse gas reduction: 90,182 tCO2e per year
• Renewable energy: 247 MWp of RE capacity (including offsite wind) added in 2021, 2022 and 2023
• Water saving: 2,401,002 m
3 per year
• Energy saving: 177,168 MWh per year
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↗ T.23 SUPPLIER CLIMATE ACTION PROGRAMMES
Cleaner Production programmes
Country
Program/Partner
Scope
Number of
factories*
% Sourcing volume
(globally)
China-Taiwan
Clean-by-Design (CbD)/aii
Energy and water efficiency
T1: 3
T2: 16
2023
Tier 1: 70%
Tier 2: 56%
To be Enrolled
2024
Tier 1: 71%
Tier 2: 62%
Low Carbon Manufacturing
Program (LCMP)/WWF
Energy and water efficiency
T1: 7
Bangladesh
Partnership for Cleaner Textile
(PaCT)/IFC
Energy and water efficiency
T1: 6
T2: 4
Vietnam -
Cambodia
Clean-by-Design (CbD)/aii,
FABRIC/GIZ
Energy and water efficiency,
Coal phase-out
T1: 8
T2: 2
MSMA
Energy and water efficiency
T1: 6
T2: 3
Greening Textile Program
Energy and water efficiency
T2: 2
Indonesia
Clean-by-Design (CbD)/aii
Energy and water efficiency
T1: 3
Mexico**
Sustainable energy for all
Energy efficiency
T1; 2
Total
T1: 35
T2: 27
*
The number of factories represents completed and ongoing projects from 2019 until the end of 2023
** Non-core factories
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↗ T.24 RENEWABLE ENERGY PROGRAMMES
Country
Programme/Partner
Scope
Number of
factories*
% Sourcing
volume (globally)
Vietnam/ Cambodia
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 7
T2: 2
Self-initiative by factories
Rooftop Solar
T1: 5
T2: 8
Self-initiative by factories
iREC/DPPA pilot
T1: 4
T2: 3
China-Taiwan
Self-initiative by factories
Rooftop Solar
T1: 7
T2: 9
Offsite wind, DPPA, iREC
T1: 11
T2: 9
2023
Tier 1: 65%
Tier 2: 60%
Bangladesh
Partnership for Cleaner Textile
(PaCT)/IFC
Rooftop Solar
T1: 2
T2: 1
Self-initiative by factories
Rooftop Solar
T1: 2
T2: 2
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 3 To be enrolled in
2024
Tier 1: 71%
Tier 2: 73%
Indonesia
Clean-by-Design(CbD)/aii
Rooftop Solar/ TIGR
T1: 3
Pakistan
Project Development Programme
(PDP)/ GIZ
Rooftop Solar
T1: 2
Other (Argentina,
Brazil, Mauritius,
Philippines, Turkey)
iREC, Geothermal
T1: 3
T2: 1
Total
T1: 49
T2: 35
*
The number of factories represents completed and ongoing projects from 2019 until the end of 2023
Rooftop solar panels from our suppliers in Bangladesh and Vietnam
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Coal-Fired Boiler Phase-Out
We are committed to phasing out coal-fired boilers from our supply chain, mainly from the core Tier 1 and
Tier 2 suppliers, by 2025. In 2022, we mapped our core suppliers and found that 21 of them have coal-fired
boilers. In 2023, the number of core factories with coal fired boilers reduced to 17 due to revisions in the core
factory list, out of which two factories have successfully phased out coal and 11 factories have partially
replaced coal. In 2024, we plan to engage with remaining four factories which have not yet initiated the
transition. We also plan to continue our tracking of factories which are under transition.
↗ G.16 COAL-FIRED BOILER PHASE OUT STATUS
In 2022 PUMA joined the Coal Phase Out Action Group under the UN’s Fashion Charter, with an objective to
collaborate with other brands to expedite the phase-out of coal in our supply chain. We included a coal-fired
boiler question in our on-boarding checklist for new factories in July 2022, to avoid on-boarding such
factories with coal-fired boiler.
As a first step the brands have mapped their supply chain to identify supplier factories with coal fired
boilers, and also identified the overlapping suppliers to prioritize these factories. GIZ joined this programme
as an implementation partner and offered a coal phase-out pilot in Vietnam. This programme has a 10-step
approach to realize coal phase out. Currently we are exploring options to partner with other brands to test
the programme in our supply chain.
↗ CASE STUDY
Coal phase-out
In 2023, Chen Tai (Vietnam) Woven Tapes Enterprise Co., Ltd. successfully phased out the use of coal
for its boiler by switching to rice husk biomass. Not only did this transition allow the facility to reduce
their GHG emissions by 2,600 tCO2e, it also helped the facility to save 20% in fuel costs.
Supplier Climate Targets
Science based targets are ambitious and difficult to achieve. Only large suppliers with capacity and top
management commitment will be able to succeed. Those suppliers are identified through a readiness
survey, climate investment study, long term business potential and in alignment with sourcing leaders. For
the remaining suppliers, we plan to implement a simplified target setting system and hence an in-house
tool is being developed for these suppliers.
Vietnam
53%
China
17%
Taiwan
18%
Cambodia
6%
Turkey
6%
Geographical Spread
Partially replaced
65%
Not started
23%
Done
12%
Implementation Status
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In 2021, we developed two training modules for our core suppliers with the objective of driving climate target
setting. One module focuses on the group of suppliers that need to establish science-based targets, and the
other is aimed at the group of suppliers that needs to establish climate targets based on a simplified tool
developed in-house.
In continuation of efforts made in 2021 regarding SBT for key suppliers, we conducted a climate investment
survey for our top 20 suppliers and evaluated long-term business potential with them in alignment with our
sourcing leaders. We evaluated their readiness level to set a SBT in future.
In 2023, we approached 21 selected supplier groups representing 40-50% of our business volume,
to suggest them to set Science-Based Targets on company level (covering all of their factories including the
ones not producing for PUMA). In March 2023 we kicked it off through a meeting, to go in detail through SBT
process with the help of CDP. 19 out of these 21 suppliers agreed to set up SBT, one supplier declined, and
one supplier already had an approved target. To encourage peer learning and to learn from industry experts
we launched regular networking sessions on SBT. So far, we have completed two this year after the kickoff
meeting in March. One supplier has already an SBT approved by SBTi, one has science-aligned targets
(Scope 1 and 2) approved by World Resources Institute (WRI), nine suppliers are in process of getting
SBT approved.
Supplier Leadership On Climate Transition (LOCT) Programme
In October 2023, we engaged with Guidehouse to launch a capacity development programme called Supplier
Leadership On Climate Transition (LOCT). The programme provides a web-based platform to learn and
implement a step-by-step approach for setting Science Based Targets and guidance on how to achieve those
targets. So far, nine suppliers registered to join this programme in fall 2023. However, only eight suppliers
joined, since one supplier selected a training available only after a supplier has set a SBT. This supplier will
join the programme in 2024. We expect some other suppliers to join in early 2024.
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↗ CASE STUDIES
Resource efficiency
TST Group, which is one of our dyed fabrics suppliers, has implemented an innovative low-carbon
coloration process, at its dyeing mills located in China and Cambodia. The supplier has installed
advanced dyeing machines such as low liquor ratio dyeing machines, which require much less water
than conventional dyeing machines. The factories also switched from batch to continuous
pretreatment (preparation of fabric for dyeing) and continuous after-treatment (finishing of fabric)
which are more efficient processes and hence consume less energy and water. These initiatives are
estimated to reduce water usage by 70% and carbon footprint by 60% as compared to the
conventional dyeing process in China. In Cambodia, it is estimated to reduce water usage by 40% and
carbon footprint by 45% compared to the conventional process. TST has also gone for cold pad batch
dyeing machines in its Chinese factory, which dye fabric in a cold condition, rather than in a heated
condition in the conventional dyeing process. This technology, along with continuous pre-treatment
and continuous after-treatment, is estimated to reduce water consumption by 75%, carbon footprint
by 55% and chemical consumption by 90% compared to conventional dyeing process. The
environmental benefit of these initiatives can be evidenced from water and energy data we collected.
TST China’s GHG emissions are 54% lower, and the water consumption is 16% less than PUMA
suppliers' average for textile mills. TST Cambodia’s GHG emissions are 50% lower and the water
consumption is 10% less than PUMA suppliers’ average for the textile mills.
Solar PV
The Urmi Group, a renowned group of companies based in Bangladesh, has committed to reducing
the greenhouse gas emissions from its business operations by 52.6% (intensity) by 2027 compared to
the baseline year 2017. Therefore, Fakhruddin Textile Mills Ltd., one of the largest textile
manufacturing units of the Urmi Group, installed roof-top solar panels in April 2022 and started to
add renewable energy with a full design capacity of 2.5 MWp. As a result, solar PV is contributing to
increasing the share of renewable energy and lessening GHG emissions into the atmosphere. In
2023, renewable electricity consumption accounted for 10% of the total electricity consumption
(purchased & captive) of the factory. At the same time, the factory lowered its emissions by 1,216
tCO2e of greenhouse gas annually.
Forest, Land and Agriculture (FLAG) emissions estimation
As required by the Science Based Target Initiative (SBTi), in 2023 we undertook a study to estimate the
greenhouse gas emissions from the Forest, Land and Agriculture (FLAG) sector of our supply chain. The
SBT requirement states that we need to set a target for FLAG emissions, if the FLAG-related emissions total
20% or more of our Scope 1, 2 and 3 emissions. PUMA engaged leading sustainability consultant Sphera to
assess the FLAG footprint of our materials; the assessment indicates that FLAG emissions constitute 3% of
the total emissions in 2022 and 4% in the baseline of 2017. Thus, there is no requirement for PUMA to set
separate FLAG targets under SBT. Out of the total FLAG emissions cotton accounts for 55% of emissions
followed by leather which contributes 26%.
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↗ G.17 FLAG EMISSIONS
↗ T.25 FLAG EMISSIONS
2022
2017
Total PUMA GHG emissions (Scope 1, 2 & 3)*
1,975,535
1,836,272
Total FLAG emissions
66,324
74,408
FLAG emissions % of total Scope 1, 2 & 3
3%
4%
*
Emissions data contain further Scope 3 categories, e.g. the product use phase, which was not taken into account in the
further Scope 3 considerations of this report, as PUMA has no influence on it
Scope 3 Category 1 Emissions
In 2023, we continued our assessment of Scope 3 emissions that come from PUMA’s indirect business
activities, mainly in the supply chain, by lifecycle expert company Sphera in line with the Greenhouse Gas
Protocol.
As in 2022, they conducted a comprehensive assessment of our supply chain emissions beyond Tier 1
manufacturing, including Tier 2 manufacturing of fabrics and components, estimated emissions from Tier 3
suppliers and material production using emission factors from their LCA database known as the
GaBi database.
↗ T.26 PUMA’S SCOPE 3 CATEGORY-1 CO2E EMISSIONS FROM SELECTED VALUE CHAIN
ACTIVITIES
1
Scope 3
Emissions
(Category -1)
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2017/2023
Absolute GHG
emissions
(tCO2 eq)
991,864
1,278,758
1,242,468
1,389,335
1,631,904
1,484,935 1,409,265
-30%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Note: Scope 3 category 1 estimation includes GHG emissions associated with goods and services purchased by PUMA from
Cotton
55%
Polyester
0%
Rubber
2%
Paper and
cardboard
14%
Leather
26%
Others
3%
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its suppliers related to PUMA products and associated packaging. This excludes emissions associated with other goods and
services acquired by PUMA offices, stores and warehouses.
We can see that our absolute Scope 3 emissions from the purchased goods and services category have
decreased by 30% from 2017 to 2023, while material consumption has in increased by 10% during the same
period.
In view of the global macroeconomic situation, which has led to a change in customers' ordering behaviour,
and the normalisation of the supply chain, we saw a decline in the order book in the first half of the year and
stabilisation during the second half, with a return to the pre-pandemic ordering practices. Therefore, we
actively adjusted sourcing activities respectively and continued to provide transparency to our sourcing
partners so they can adjust their capacities accordingly. This explains why material consumption and energy
consumption decreased compared with 2022. This contributed to our absolute greenhouse gas emission
reduction, alongside energy efficiency improvements and the increased use of renewable electricity at a
factory level, as well as the usage of more sustainable materials.
Scope 3 Category 1 emissions mainly originate from two sources; the raw materials and the energy
consumed by our core Tier 1, Tier 2, Tier 3 (production of raw material) suppliers to produce finished
materials and components as well as finished goods. A breakdown of total GHG emissions by source is
presented below.
↗ G.18 GHG EMISSIONS BY SOURCE
Carbon footprint at a supply chain level
Looking deeper into the emissions from our supply chain, we see that absolute GHG emissions from Tier 1
and Tier 2 suppliers were 3% lower in 2023 than in 2017. 65% of greenhouse gas emissions are coming from
Tier 2 factories while 35% of emissions are contributed by Tier 1 factories. Drilling down into product
divisions, we can see that the Tier 2 textile/fabric mills contribute a maximum of 61% followed by Tier 1
footwear factories with 26%. This is mainly due to the higher energy footprint of Tier 2 textile wet processing
units. Further analysis indicates that absolute emissions from Textile Tier 2 factories have increased by
18% while the production of textile/fabric for PUMA factories has increased by 23% in 2023 as compared to
2017. The absolute emissions from Footwear Tier 1 factories have reduced by 17% in 2023 as compared to
2017, while the PUMA production from Tier 1 Footwear factories has increased by 31%. This was achieved
due to the participation of these factories in cleaner production, renewable energy programmes and the
purchase of iRECs.
Absolute GHG emissions from Tier 3 suppliers in 2023 saw a marginal increase of 0.3% compared to 2017. A
closer look at the data indicates that this marginal increase in absolute emissions from Tier 3 suppliers is
mainly due to a rise in the consumption of polyester and polyurethane during this period. Polyester and
Tier 1&2
24%
Tier 3
18%
Materials
58%
Tier 1&2
34%
Tier 3
25%
Materials
41%
Scope 3.1 Emissions (2017)
Scope 3.1 Emissions (2023)
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polyurethane together increased by 27% in 2023 as compared to 2017; this was mainly due to an increase in
sourcing volume but also because our material data quality and accuracy has improved since 2021.
We see opportunities to further scale up cleaner production and renewable energy programmes to more
Tier 1 and Tier 2 suppliers, and also to launch them at some of the spinners (Tier 3).
In 2023, we mapped our core Tier 3 spinning mills for the Apparel division through our core Tier 1 and Tier 2
suppliers. We could identify 20 spinning mills. We collected yarn volume supply for PUMA production in 2022
for 19 mills. These 19 factories represented 25.8% of our total volume of yarns sourced in 2022. The objective
was to engage these factories to collect primary energy data from Tier 3 suppliers to calculate greenhouse
gas Scope 3 emissions rather than estimating the emissions from Tier 3 factories by using raw material
data and subsequently to engage them on cleaner production and renewable energy programmes. We
provided training to these Tier 3 suppliers on energy data questionnaires and asked them to provide the
data. However, we faced many challenges, including a lack of willingness on the part of these Tier 3
suppliers to provide energy data and supporting documents.
Only eight factories submitted data. Out of these eight factories only three factories’ data could be validated.
The remaining five factories did not provide supporting documents. In coming years, we will continue to
encourage these suppliers to submit their data. The 2023 Tier 3 emissions are estimated by Sphera using
its GaBi database.
↗ T.27 GHG EMISSIONS BY SUPPLIERS
1
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Absolute GHG emissions
from Tier 1 and Tier 2
suppliers (t CO2e)
334,123 423,762 358,508 297,573 371,420 382,043
345,361
-21%
-3%
Tier 3 suppliers (t CO2e)
252,918 305,869 284,215 223,909 258,425 193,193
252,251
-17%
0.3%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Note: Tier 1 & Tier 2 emissions are estimated based on actual energy consumption collected from core Tier 1 and Tier 2
factories and extrapolated to cover all Tier 1 and Tier 2 supplier factories. Tier 3 emissions are estimated by Sphera by using
its GaBi database.
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↗ G.19 GHG CONTRIBUTION BY PRODUCT DIVISION
1-2
1
Tier 1: Apparel, Footwear & Accessories factories
2
Tier 2: Leather, textile, polyurethane factories
PROPORTION OF PRODUCTION POWERED BY COAL
Out of the various product divisions, currently coal is only used in leather and textile production. For leather,
around 24% of PUMA production is powered by coal, of which 7.6% in China and 17.0% in Vietnam. For textile,
around 43% of PUMA production is powered by coal. Vietnam contributes the most with 31.8%; the remaining
percentage is shared between Cambodia, China, Taiwan and Turkey. Aligning with PUMA strategies, all
suppliers that are still using coal for their production have set targets and plan to phase out coal.
↗ T.28 PERCENTAGE OF PRODUCTION POWERED BY COAL (CORE TIER 2)
1
China
Vietnam
Total
Tier 2 -
Leather*
7.6%
17.0%
24.6%
Cambodia
China
Taiwan
Turkey
Vietnam
Total
Tier 2
Textile**
3.6%
1.7%
2.3%
3.8%
31.8%
43.2%
*
Core Tier 2 Leather: 5 factories
** Core Tier 2 Textile: 32 factories
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Carbon Footprint At A Raw Material Level
Absolute GHG emissions from raw material consumption fell by 50% even as total material consumption
increased by 10% since 2017. This was achieved due to our continuous endeavour to shift towards more
sustainable materials and other measures. More sustainable cotton and polyester increased from 40% and
47% in 2017 to 99.2% and 85% respectively in 2023. In view of the global macroeconomic situation, which has
led to a change in customers' ordering behaviour, and the normalisation of the supply chain, we saw a
Apparel
6%
Footwear
26%
Accessories
3%
Leather
1%
Polyurethane
3%
Textile
61%
Apparel
9%
Footwear
31%
Accessories
6%
Leather
3%
Polyurethane
1%
Textile
50%
2017
2023
PUMA Annual Report 2023
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127
decline in the order book in the first half of the year and stabilisation during the second half. This explains
why material consumption decreased compared with 2022.
↗ T.29 GHG EMISSIONS FROM MATERIALS
1
2023
2022
2021
2020
2019
2018
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Total raw materials (t)
174,390 200,514 187,101 195,039
200,936 179,995
158,509
-13%
10%
GHG emission from
materials (tCO2e)
404,822 549,127 599,849 867,853 1,002,059 549,127
811,654
-26%
-50%
1
Assumptions: During the Scope 3 assessment, it was observed that material data collection has improved over time and
that, since 2021, we have been able to capture the material data comprehensively. For example, 2017, material data was not
available for all types of materials and some material data were incomplete. In the absence of comprehensive raw material
data for 2017, material data was extrapolated from 2020. Furthermore, we observed that the polyester consumption data for
footwear was exceptionally high for 2020 and possibly erroneously overestimated. Therefore, the polyester data for footwear
for 2017 and 2020 was extrapolated from 2019 data.
A breakdown analysis as shown in the following chart indicates that polyurethane (23%) contributes the
most, followed by leather (18%) and polyester (17%). The share of rubber has significantly reduced from 33%
in 2017 to 15% in 2023, mainly due to a reduction in rubber consumption during the same period, while
the share of polyurethane has significantly increased from 7% in 2017 to 23% in 2023, and polyester’s share
has increased from 12% to 17% mainly due to significant increase in polyurethane and polyester
consumption during the same period. The share of leather has fallen from 21% in 2017 to 18% in in 2023. This
is due to a combination of strategies to replace leather with polyurethane and textile and the improved
capture of leather data in 2023, as we collected suede leather and grain leather data separately and suede
leather has a lower carbon footprint than full grain leather.
The analysis for 2023 indicates that we need to focus more on sustainable alternatives for polyurethane,
polyester, leather and synthetic rubber.
↗ G.20 GHG CONTRIBUTIONS BY MATERIALS
1-2
1
Other include: acrylic, linen, lycra, metals, adhesives, etc.
2
Leather is natural leather while polyurethane is imitation leather, also known as synthetic leather
Cotton
11%
Leather
18%
Polyester
17%
Plastic packaging
1%
Rubber
15%
EVA
9%
Polyurethane
23%
Paper packaging
2%
Other
4%
Cotton
8%
Leather
21%
Polyester
12%
Plastic packaging
0%
Rubber
33%
EVA
6%
Polyurethane
7%
Paper packaging
0%
Other
13%
2017
2023
PUMA Annual Report 2023
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128
↗ G.21 ENERGY AND WATER CONSUMPTION AT RAW MATERIAL LEVEL
↗ T.30 ENERGY AND WATER CONSUMPTION AT RAW MATERIAL LEVEL
Material wise analysis
Water Consumption (m3)
Energy Consumption (GJ)
Cotton
30,115,148
255,981
Leather
2,824,342
935,920
Polyester
5,253,305
1,950,459
Plastic packaging
7,520
18,543
Rubber
684,179
2,338,201
EVA
282,703
1,239,101
Polyurethane
495,391
1,977,494
Paper packaging
77,727
143,537
Others
1,793,769
469,798
In 2023, we evaluated the energy and water footprint at a raw material level. The results indicates that the
energy footprint of rubber is the highest (25.1%) followed by polyurethane (21.2%) and polyester (20.9%).
When it comes to water cotton has the highest share (72.5%) followed by polyester (12.6%). We intend to use
this analysis for material selection purposes to reduce the energy and water footprint of our products.
Renewable Energy
In line with our 10FOR25 target to achieve a 25% share of renewable energy for core Tier 1 and Tier 2
suppliers, we have set a goal of 15% renewable energy share for 2023. The share of renewable energy
consumption by Tier 1 suppliers increased from 11.3% in 2022 to 23.1% in 2023 and Tier 2 suppliers increased
from 10.8% in 2022 to 21.7% in 2023. The increase in both tiers therefore has helped PUMA to reach an
overall share of renewable energy of 22.1% in 2023, greatly exceeding our target. This was mainly achieved
due to the participation of the core suppliers in renewable energy projects, followed by the installation of
rooftop solar facilities, switching from coal to biomass and the purchase of energy attribute certificates
by both core Tier 1 and Tier 2 suppliers.
Cotton
72.5%
Leather
6.8%
Polyester
12.6%
Plastic packaging
0.0%
Rubber
1.6%
EVA
0.7%
Polyurethane
1.2% Paper packaging
0.2%
Others
4.3%
Cotton
2.7%
Leather
10.0%
Polyester
20.9%
Plastic packaging
0.2%
Rubber
25.1%
EVA
13.3%
Polyurethane
21.2%
Paper packaging
1.5%
Other
5.0%
Energy Consumption (GJ)
Water Consumption (m³)
PUMA Annual Report 2023
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↗ T.31 E-KPIS PUMA TIER 1 & TIER 2 PRODUCTION - ENERGY
1
Energy (MWh)
2023
2022
2021
2020
2019
2018
2017
% Change
2020/2023
PUMA production (Core Tier 1)*
Non-renewable energy
consumption from PUMA
production (Core Tier 1)
201,553
292,459
331,199 221,641 246,160 195,866
194,881
-9.1%
Renewable energy consumption
from PUMA production (Core Tier 1)
60,662
37,322
17,763
3,013
294
1,913.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 1)
23.1%
11.3%
5.0%
1.0%
0.2%
1,625.0%
PUMA production (Core Tier 2)**
Non-renewable energy
consumption from PUMA
production (Core Tier 2)
611,238
744,940
795,673 607,310
586,986
0.6%
Renewable energy consumption
from PUMA production (Core Tier 2)
169,655
90,333
39,317
3,393
524
4,901.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 2)
21.7%
10.8%
5.0%
0.6%
0.1%
3,811.0%
PUMA production (Core Tier 1 and 2)
Non-renewable energy
consumption from PUMA
production (Core Tier 1 and 2)
812,792 1,037,399 1,126,872 828,951 246,160 195,866
781,867
-1.9%
Renewable energy consumption
from PUMA production (Core Tier 1
and 2)
230,317
127,655
57,080
6,406
-
818
3,496.0%
Percentage of renewable energy
consumption from PUMA
production (Core Tier 1 and 2)
22.1%
11.0%
4.8%
0.8%
0.1%
2,779.0%
*
Core Tier 1 supplier factories Apparel, Footwear and Accessories (62 factories))
** Core Tier 2 supplier factories Leather, PU and Textiles (40 factories)
1
Data includes extrapolations or estimations where no real data could be provided. The values for November and
December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in Microsoft Excel, utilizing data
from January to October of 2023. This approach was chosen after comparing it to alternative methods, considering its
performance against actual historical data, specifically in terms of deviation from the actual values in percentage terms. The
ETS method displayed both higher accuracy and higher precision compared to other methods, such as averaging the last
10/12 months or multiplying the estimated production by the average KPI (per production unit) from the 12 months of data
spanning from November 2021 to October 2022.
Renewable electricity
The share of renewable electricity sourcing by Tier 1 and Tier 2 suppliers has increased from 0.35% in 2017
to 27.4% in 2023. Looking at the Tiers in the value chain, the share of renewable electricity has increased
from 0.18% in 2017 to 18.0% in 2023 by Tier 1 suppliers, while it has increased from 0.74% to a
significant 47.2% for Tier 2 suppliers during the same period including the purchase of RECs by suppliers.
This progress is achieved due to publicly disclosed 2025 goals on renewable energy, one-to-one follow-up
meetings with the suppliers, the participation of factories in renewable energy programmes which led to
the installation of roof-top solar PV and the purchase of RECs. Support from the Sourcing department has
played a major role in engaging with our core suppliers.
PUMA Annual Report 2023
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130
↗ T.32 SHARE OF RENEWABLE ELECTRICITY AS COMPARED TO GRID ELECTRICITY
1-3
Electricity (kWh)
2023
2022
2021
2020
2017
(Baseline)
% Change
2022/2023
% Change
2017/2023
Total renewable
electricity
91,246,157
64,624,534
14,494,042
3,588,937
817,644
41%
11060%
Total grid electricity
241,651,096
333,408,508
324,910,084
252,665,750
234,323,351
-28%
3%
Share of renewable
electricity
27.4%
16.24%
4.30%
1.40%
0.35%
69%
7783%
T-1 renewable
electricity
40,660,939
13,695,766
11,149,103
1,999,458
298,283
197%
13532%
T-1 grid electricity
185,115,917
266,321,305
218,804,548
169,593,745
164,904,224
-30%
12%
Share of renewable
electricity (T-1)
18.0%
4.89%
4.80%
1.17%
0.18%
268%
9874%
T-2 renewable
electricity
50,585,218
50,928,768
3,344,939
1,589,479
519,361
-1%
9640%
T-2 grid electricity
56,535,179
67,087,203
106,105,536
83,072,005
69,419,127
-16%
-19%
Share of renewable
electricity (T-2)
47.2%
43.15%
3.10%
1.88%
0.74%
9%
6259%
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
2
The total electricity does not include captive electricity generation from fossil fuels such as Natural Gas, Diesel etc.
3
The renewable energy includes iREC certificates purchased by core leather, polyurethane, textile factories in the year 2023,
but excludes renewable energy sourced by the Tier 2 core factories e.g., packaging and labelling, trims, footwear bottom and
knitted uppers.
Policy Advocacy
As a part of Policy Engagement working group under Fashion Industry Charter for Climate Action. In 2023,
the UNFCCC organised a policy dialogue event with stakeholders in Bangladesh. The purpose of this policy
dialogue was to initiate an inclusive but focused discussion among key stakeholders in the fashion sector
about how to jointly effect the required changes, identify actions that can be taken in the near-term future to
accelerate renewable energy, support scaling renewable energy solutions, and connect existing efforts on
the ground with best practice case studies.
PUMA participated in this policy dialogue event on February 27
th, 2023, along with other brands. The key
outcomes were:
• The government of Bangladesh remains committed to accelerating transition to renewables.
• Discussions were focused on exploring direct Power Purchase Agreements (PPAs) as a solution for
transiting to renewable energy in Bangladesh.
• The need for fiscal and tax incentives, including upgrade of tariffs were identified as key required policy
interventions.
• Opportunities to identify financing for renewable energy were another key aspect which needs to be
explore.
PUMA Annual Report 2023
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131
GREENHOUSE GAS EMISSIONS FROM THE TRANSPORT OF GOODS
PUMA’s Logistics Team has been working on reducing greenhouse gas emissions from the transport of
goods for several years. Key measures include the optimisation of container loads, as well as reducing
airfreight to an absolute minimum. Air freight reduction is also part of PUMA’s annual bonus targets.
2023 brought progress in several areas:
• We managed to further reduce our airfreight ratio to 0.3%, meaning that only 0.3% of all PUMA goods (by
unit) are transported by air. This is a significant reduction compared to 2019 (before the COVID-19
pandemic) where the value was close to 3%.
• Together with our main logistics service provider Maersk, we've integrated biofuels into our marine
shipments as part of Maersk’s eco-friendly shipping initiative. Since February 2023, the utilisation of
biofuels for transporting goods from our manufacturing sites to the European market has resulted in an
impressive 84.6% reduction in GHG emissions along these routes.
• Our logistics team in the USA was able to expand the use of electric trucks from one to three trucks for
the transport of PUMA goods between the port in Los Angeles and the warehouse in Torrance. We
anticipate that more electric trucks will follow in other countries over the next years.
An electric truck operates at PUMA’s warehouse in California, USA
↗ G.22 SHARE OF GHG EMISSIONS BY TRANSPORT MODE IN 2019 AND 2023
Road
23.6%
Rail
1.0%
Sea
19.1%
Air
56.4%
Road
49.7%
Rail
3.1%
Sea
37.0%
Air
10.1%
2019
2023
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132
↗ T.33 CO2e EMISSIONS PER TRANSPORT MODE
CO2e emissions (t)
2023
2022
2021
2019
Road freight
33,665
48,345
38,815
24,522
Rail freight
2,103
675
3,153
1,013
Sea freight
25,070
45,891
44,698
19,830
Air freight
6,864
29,751
17,731
58,651
The graph and table above illustrate the relative downturn in the use of air freight compared to other modes
of transport. Our airfreight reduction target helped us reduce the share of emissions from airfreight from
56.4% in 2019 to 10.1% in 2023.
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133
CHEMICALS
TARGET DESCRIPTION:
• 100% of all PUMA products are safe to use
• Maintain RSL compliance rate above 90%
• Reduce organic solvent usage to under 10 gr/pair
Relates to Sustainable United Nations Development Goals 3 and 6
KPIs:
• RSL compliance rate per product division (as a percentage)
• Percentage of core suppliers with chemicals inventory and MRSL conformance report (ZDHC InCheck
reports)
• Suppliers’ chemical performance (verified FEM scores under chemical management section)
• VOCs used in footwear production (VOC index for shoes)
PUMA follows the precautionary principle and takes measures to prevent harm to human health and the
environment from its products and operations.
All the materials used in PUMA products are subject to our Restricted Substance List (RSL) Testing
Programme to ensure compliance with global chemical regulations. Rather than applying internal testing
standards for our tests, we rely on the AFIRM Group’s Product RSL and on the Manufacturing RSL
developed by the Zero Discharge of Hazardous Chemicals Foundation (ZDHC).
In 2021, we updated our target to RSL compliance rate above 90% considering the potential use of new
chemicals in the new material development and innovation. No material with a failed RSL test can be used
for PUMA products until the failure has been corrected and the material has successfully passed the test. In
this way, we mitigate the risk of product-level RSL failures. We will still track our RSL failure rates to
identify improvement opportunities and to prevent such failures from occurring in future.
At the manufacturing level, as part of our Zero Discharge of Hazardous Chemicals commitment, we
continued to ban the intentional use of priority chemical groups classified as particularly hazardous under
ZDHC standards. This phase-out was supported by the widespread use of bluesign® and OEKO-TEX®-
certified materials. There was no intentional use of the priority chemical groups. Poly- and per-fluorinated
chemicals (PFCs) were used until 2017 for water-repellent finishes on apparel and footwear products. In
2021 we started using Gore-Tex bluesign®-certified membranes and finishes again, which are either
completely PFC-free or free from PFCs of environmental concern. In February 2017, Gore announced the
“Goal and Roadmap for Eliminating PFCs of Environmental Concern (PFCEC)” from the lifecycle of its
consumer fabric products following discussions with Greenpeace. Gore Fabrics Division is still fully
committed to the PFCEC-free goals for its consumer products and is now on track to transition most of its
portfolio by the end of 2025.
Our phase-out of hazardous substances is also reflected in the results of wastewater tests performed by
our wet-processing suppliers. The tests show compliance levels of 98% among the 20 MRSL parameters
listed in the ZDHC MRSL. Most parameters show compliance rates of 100% or close to 100%. Some MRSL
PUMA Annual Report 2023
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134
chemicals were still found in certain samples because we share production lines with other brands and
retailers. Please see our Water and Air section for further details.
A total of 283 ZDHC Gateway accounts are connected with PUMA: 45 are core Tier 1 and 64 core Tier 2
factories and the remaining are non-core factories. These factories are part of different ZDHC programmes,
depending on what applies to them: InCheck reports for MRSL conformance, ClearStream reports for
wastewater conformance, and the Supplier To Zero programme for chemical management.
CHEMICAL RISK ASSESSMENT AND NEXT STEPS
In 2021, we conducted a risk assessment using our risk assessment methodology. We used the Higg FEM
chemical management 2020 for our core suppliers and engaged with AFIRM and ZDHC foundation to review
our risk assessment.
We see a high level of risk in upcoming regulatory requirements. We will keep our engagement with AFIRM
and FESI as a platform to engage with policymakers in different regions and countries such as EU and the
USA, so that standards are achievable by the industry.
PUMA has a long-lasting programme to ensure compliance with industry standards.
We will keep using the China IPE database to screen any environmental violations by factories located in
China producing PUMA products or materials. We will keep monitoring compliance with ZDHC Wastewater
Guidelines, ZDHC MRSL and AFIRM RSL.
We organised MRSL conformance training for PUMA Tier 1 and Tier 2 suppliers and also invited chemicals
suppliers to engage on MRSL conformance engagement. In 2023 we initiated in-check report verification by
an authorised third party to ensure the credibility and reliability of MRSL conformance data.
The details of compliance with ZDHC Wastewater Guidelines, ZDHC MRSL, and Higg FEM chemical
management are described in this report.
2022 PUMA BRANDS TO ZERO – PROGRESSIVE LEVEL
We reached the Progressive Level for the Brands to Zero Assessment 2023. Brands
to Zero is ZDHC’s leader programme for contributor brands. ZDHC developed the
questionnaire and scoring methodology to assess the brands.
All participating contributors in the leader programmes are graded into three performance levels
Foundational, Progressive, and Aspirational. Our rating dropped from aspirational level in 2022 to
progressive level in 2023, due to changes in the rating criteria. Higher weightage is allocated to business
decisions linked to chemical management performance. Though at PUMA, we have a procedure in place to
link business decisions with factories’ chemical performance, we have not had such a case. We launched a
factory scorecard that includes chemical performance in 2021, so far factories have improved their
performance year after year.
In the 2023 Brands to Zero Assessment, we achieved a 100% score for five out of ten performance areas
such as Commitment, Internal Enablement, Supply Chain Engagement, ZDHC Gateway Chemical Module,
and ZDHC Wastewater Guidelines, as a result of our strong commitment to enhancing sustainable chemical
management in our supply chain.
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135
FEM CHEMICAL MODULE
PUMA has moved from individual brand chemical and environmental audits to using industry-wide tools,
such as the Higg Index Facility Environmental Module (FEM) 3.0. PUMA requires an annual external
verification of the self-assessment FEM modules (verification visits are announced). This external
verification may be completed by approved verifiers from PUMA’s internal team, other brands, or third-party
organisations on the approved list from SAC. The FEM Chemical Management Section measures factory
performance from inventory and purchasing through production, storage, and waste. PUMA’s Chemical
Performance Rating System is based on the ratings developed from the factories’ verified Higg FEM scores
under the chemical management section as verified by SAC-approved verifiers: A, B+, B-, C and D. The
minimum passing grade from a Chemicals perspective is 40% (i.e., only A, B+ and B- ratings are a passing
score) and C and D are failure ratings. This rating system was presented during meetings of suppliers and
sourcing teams in 2021 and was implemented gradually during 2022 and 2023. Our Chemicals handbook has
been updated accordingly. The rating system was included in vendor supplier scorecards along with social
and environmental ratings.
The table shows the aggregated verified FEM 2022 chemical module scores (median) for PUMA core
factories with industry benchmarking. Compared to the industry, the overall verified FEM score for our
factories is higher than the industry median score.
↗ G.23 AGGREGATED VERIFIED FEM CHEMICAL SCORE FOR PUMA FACTORIES BENCHMARKED
WITH INDUSTRY
1
*
FEM 2022 PUMA and Stichd average: 160 factories; FEM 2021 PUMA average: 142 factories; stichd has 32 core Tier 1 factories
of which 30 have completed verification. One core factory is a shared factory between PUMA and stichd and hence counted
once under PUMA
** Industry median FEM (6,980 factories): Filters used: Industry sector: Apparel; Footwear; Accessories (includes handbags,
jewelry, belts, and similar products) and Facility Type: Final Product Assembly; Printing, Product Dyeing and Laundering;
Material Production (textile, rubber, foam, insulation, pliable materials); Packaging Production
1
Verification in 2023 is for FEM2022; Verification in 2022 is for FEM2021
In 2023, PUMA continued to use the Higg Facility Environmental Module (FEM), an industry tool, to measure
chemical management performance through the Higg FEM Chemical Management Module, which tracks
purchasing and inventory management, production, storage, and waste locations. This tool is also used to
measure Chemical Management performance for stichd core factories.
In 2022, we communicated our expectation to the PUMA core factories that they improve their verified FEM
Chemical Management score to 46% in 2023. We exceeded this goal with a FEM Chemical Management
score for PUMA of 51%. The combined average of PUMA and stichd’s chemical module score also exceeded
by achieving the target with an average score of 49%. The industry median score is 32%.
29%
39%
49%
32%
FEM 2020 PUMA average FEM 2021 PUMA average FEM 2022 PUMA & stichd
average*
FEM 2022 Industry
median**
+26%
PUMA Annual Report 2023
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During 2023, we continued to engage with our PUMA core Tier 1 and Tier 2 factories in capacity-building
activities and projects in chemical management, for factories with a low Higg FEM Chemical Module score.
We worked together with industry expert groups like ZDHC, AFIRM as well and ZDHC-approved laboratories
to organise training webinars and develop training videos in local languages.
PUMA also continued to join the Chemical Management Improvement (CMI) Programme of GIZ to improve
the factories’ performance. We collaborated with other brands to nominate participating factories in
Vietnam for a tutor-assisted and onsite consultancy programme. For other countries, the factories were
invited to join online training on chemical management developed by GIZ.
The improvement in the MRSL conformance rate also contributed to an increase in Higg FEM Chemical
Management score.
In 2024, we will continue to engage with our core Tier 1 and Tier 2 factories in capacity-building activities and
projects in chemical management. We will organise customised training sessions by SAC-authorised
trainers. The training sessions will focus on Higg FEM 4.0, such as key updates and their relevant impact on
their facility for a smooth transition to the new version.
SUPPLIER TRAINING
A series of training sessions were conducted in 2023, covering chemical management in input, process and
output phases, in collaboration with ZDHC, accredited third-party laboratories and external consultants.
ZDHC SUPPLIER TO ZERO ASSESSMENT
In 2023, our factories participated in the ZDHC Supplier To Zero programme, a ZDHC Chemical Management
System (CMS) Framework that contains a chemical management checklist to help factories identify
opportunities to improve their chemical performance. 77 core Tier 1 and core Tier 2 factories completed the
ZDHC Supplier To Zero assessment. Almost all of them completed their assessment at the end of 2023 and
we will monitor their improvement in 2024. As a result of this programme, the average Higg FEM Chemical
Management score of the 58 factories which participated in this programme in 2022, improved from 36% in
2022 to 55% in 2023.
CHEMICAL MANAGEMENT IMPROVEMENT (CMI)
Chemical Management Improvement (CMI) training course is an initiative by GIZ. The purpose is to
develop the knowledge and capacity of the team in charge of chemicals at factories. In 2023, 40
participants from 23 core factories completed and passed the course.
In Vietnam, the training aims to develop a sound knowledge of the responsible management of chemicals,
improving capacities for the corporate environment, safety and health, and resource management in
relevant industries. Four core factories in Vietnam joined this programme and received onsite consulting
from Chemical Management Advisors (CMA) assigned by GIZ, such as Leadership and Sustainability
consultancy company. After the consulting, the factories were requested to submit an Action Plan to
improve chemical management, CMA will review this and provide recommendations. 24 participants from
these four factories joined and completed this programme in 2023. 100% of participating factories worked on
improvement plans after these training sessions.
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137
↗ T.34 SUPPLIER TRAINING
Virtual training
Training scope
Topics
Number of
participants
Number of
factories
% of factories
which joined*
MRSL
(jointly organised with a
ZDHC-approved laboratory)
Conducted 3 sessions in
3 different languages
Core Tier 1 and
core Tier 2 in
MRSL scope
• ZDHC MRSL V3.1 and
ZDHC MRSL
Conformance Guidance
V2.0
• How to improve MRSL
conformance rate
258
98
92%
Chemical Inventory
Management/Bhive
(jointly organised with a
ZDHC-approved solution
provider)
Conducted 4 sessions in
4 different languages
Remaining core
factories in MRSL
scope don’t have
InCheck Report
• PUMA Chemical
Management
Programme
• Chemical Inventory
Management / Bhive
InCheck report
introduction
22
11
92%
ZDHC InCheck verification
(jointly organised with a
ZDHC-approved solution
provider and a ZDHC-
approved laboratory)
Conducted 3 sessions in
3 different languages
Core Tier 1 and
core Tier 2 in
MRSL scope
• ZDHC MRSL/InCheck
report
• ZDHC verified InCheck
level 1 & PUMA
InCheck Verification
requirement
168
96
91%
RSL
(Jointly organised with
accredited third-party
laboratory)
All Tier 1 and Tier
2
RSL standard and testing
matrix update and
implementation
452
Approx. 160
24%
*
% of factories joined the training, calculated based on the total the factories in the scope for each subject matter training
In 2023, Chemical Management training sessions covered MRSL conformance and factory chemical
management. Ten training sessions were conducted in four different languages. More than 200 factories
and nearly 450 participants were invited. More than 90% of participants were satisfied with the training.
These training programmes helped our suppliers to improve their understanding of PUMA and industry
requirements and to improve the effectiveness of their Chemical Management Systems. After the training,
the core factories with low MRSL conformance rates developed an Action Plan to improve MRSL
conformance. We received and reviewed Action Plans from 13 factories to facilitate their implementation.
We also encouraged the suppliers’ chemical management teams to attend training courses under ZDHC
Academy as conducted by ZDHC-approved service providers. Examples of the training courses that PUMA
suppliers attended include ZDHC Chemical Management System (CMS) and Technical Industry Guide (TIG)
training.
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RESTRICTED SUBSTANCE LIST (RSL)
Between January and October 2023, we received 6,130 RSL tests and material certification submissions with
an overall RSL compliance rate maintained above 98%. Materials found to be non-compliant with PUMA RSL
cannot be used for PUMA products and suppliers need to arrange corrective actions, remediation and retest
the materials. This is to ensure that PUMA products are compliant with our RSL requirements.
↗ G.24 RSL COMPLIANCE RATE BY DIVISION 2023 (JAN-OCT) (%)
↗ T.35 RSL TEST STATISTICS 2020-2023 (JAN-OCT)
2023 (Jan-Oct)
2022
2021
2020
Product
division
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
No. of test
submission
Compliance
rate (%)
Footwear
4,622
99.1
5,350
98.6
5,847
98.8
5,117
99.3
Apparel
1,018
99.5
1,499
99.3
1,467
99.0
1,318
98.9
Accessories
441
92.7
846
96.5
737
94.4
878
96.8
Others
49
95.9
156
96.2
133
97.7
152
91.4
Total
6,130
98.7
7,851
98.5
8,184
98.4
7,465
98.8
RANDOM TESTING
PUMA performs due diligence random RSL tests on high-risk materials of finished products. By
October 2023, we had tested 130 materials in nine finished products across footwear, apparel and accessories
from different suppliers in different sourcing regions, and the pass rate was 99% as of October 2023.
All tested products are compliant with the legal requirements. The supplier took follow-up action to improve
the failed component found.
92,7%
99.5%
99,1%
95,9%
98,7%
Accessories
Apparel
Footwear
Others
Overall (Jan-Oct)
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MANUFACTURING RESTRICTED SUBSTANCE LIST (MRSL)
Regarding MRSL conformance, we use ZDHC MRSL, an industry standard adopted by many brands/retailers
at the supplier level. Out of 131 core factories, 25 factories do not use chemicals during the manufacturing
process and therefore are out of the scope of MRSL.
In 2023, 96 of our core factories used either BHive, CleanChain, or E3 tools to track MRSL compliance. 86%
of Tier 1 factories and 94% of Tier 2 factories under the scope of our MRSL programme have an InCheck
Report, issued by ZDHC-approved solution providers to track MRSL compliance. These are the chemical
management platforms used to manage chemical inventory and generate Performance InCheck Reports,
which provide a summary of the MRSL conformance of the factory’s chemical inventory.
↗ T.36 MRSL STATUS*
Number of factories
In MRSL scope
With Chemical Inventory List
With Incheck Report
Core Tier 1
43
37
37
Core Tier 2
63
59
59
Total
106
96
96
*
The data is based on the Aug/Sep/Oct InCheck Report and only includes factories with a complete Chemical Inventory List (CIL)
The BHive app uses OCR technology to allow manufacturing facilities to take smartphone photos of
chemical product labels, generate a full and accurate chemical inventory, and quickly identify which
chemical products meet MRSL requirements used by many brands and retailers. Facilities can then see
which chemicals they should keep using and which they should phase out.
↗ CASE STUDIES
Gold Emperor Group is a footwear manufacturer in China that developed an Action Plan to improve
MRSL conformance in 2023. They analysed the MRSL conformance rate, based on the January to
July 2023 InCheck reports to make a list of the top Non-conformance Chemicals. Then they engaged
with the concerned chemical suppliers to request that they register in ZDHC Gateway platform and
submit the evidence that their chemicals comply with ZDHC MRSL (at least level 1) on this platform.
The factory improved its MRSL conformance rate from 31% in 2022 to 92% in 2023. This conformance
rate is very high compared to PUMA's average MRSL conformance rate of 71%.
Active Creation under DSC group is an insole factory in Vietnam that joined the Chemical
Management Improvement (CMI) programme of GIZ to improve its Chemical Management
performance. Under this programme, the factory completed training courses on chemical
management systems through an online platform. As part of this programme, a Chemical
Management Advisor visited the factory and prepared a Performance Improvement Plan. As a result,
this factory has significantly improved its verified Higg FEM Chemical Management scores from 18%
in 2022 to 60% in 2023.
PUMA Annual Report 2023
↗ Sustainability
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↗ T.37 MRSL CONFORMANCE
No. factory have InCheck report
96
No. factory has achieved MRSL target
59
% factory has achieved MRSL target
61%
Average MRSL conformance rate
71%
Based on a baseline of 45% in 2021, we set a goal of 70% MRSL conformance in 2023 for all factories with an
InCheck report. We exceeded the 2023 Goal with an average MRSL conformance rate of 71% for 96 factories
with an InCheck report. 59 out of 96 core factories reached a conformance rate higher than 70% MRSL
conformance by weight. 37 factories did not reach 70% MRSL conformance rate.
In 2024, we will strive for all core factories to have an InCheck report. We will organise customised training
sessions together with ZDHC and ZDHC-approved third-party laboratories, to improve MRSL conformance
rate for the factories. 2024’s MRSL conformance goal is 80% for all factories with an InCheck report.
In 2023, we worked with ZDHC-approved verifiers to conduct a verification of InCheck. The Verified InCheck
is an on-site review to establish credibility and trust in the chemical inventory that was used by the supplier
to generate their Performance InCheck Reports. The verification is done by a ZDHC-approved third-party or
second-party (brand representative) verifier who conduct “spot check” verification of specific parameters.
To pass the verification ≥ 80% of the spot check parameters need to be validated, then the factory gets a
passed Verified InCheck checkmark on their ZDHC Gateway account. Out of 96 core factories with InCheck
report, 79 went through the verification process. 75 obtained a passed verified InCheck report. The four
factories with a failed InCheck verification (less than 80% validation rate) were required to conduct a Root
Cause Analysis, create a Corrective Action Plan and re-verify after at least three months. We will follow up
on the implementation of their action plan and will re-verify in 2024.
Besides using a chemical inventory to control input chemistry, we also use wastewater tests conducted by
accredited independent laboratories to ensure no harmful chemicals are released through the wastewater
of our manufacturer’s facilities with wet processing. The results of these tests show a compliance rate of
over 90% for each parameter, with most parameters scoring 99 or 100% compliance.
More details on wastewater testing are provided in the Water and Air section of this report.
VOLATILE ORGANIC COMPOUNDS
With much collaborative effort, we continue to edge closer toward our 2025 target of limiting volatile organic
compounds (VOC) emissions to 10 g per pair of footwear produced. Although we faced certain supply chain
difficulties in 2023, including the increased bonding requirements for our fast-growing performance
categories, we have again managed to reduce our VOC and for 2023 we are reporting 12.5 g per pair. Looking
towards 2025, we remain confident of achieving our 2025 target, through the increased use of water-based
adhesives, as well as further innovations within our adhesive suppliers.
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↗ G.25 VOC INDEX DEVELOPMENT OVER TIME
1
1
Since 2019 figure-based for core suppliers in alignment with the general reporting scope.
Actual
EU Eco Label (18 gr/ pair)
2025 Target (10 gr/pair)
70
60
40
20
10
0
50
30
g / pair of shoes
Year
66.7
56.2
46.8
43.0 42.2 39.8 41.2 40.2 37.0
33.1 30.7 28.7
24.1 21.2 20.9 17.7
15.6 14.7 13.6 13.2 12.5
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
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WATER AND AIR
TARGET DESCRIPTION:
• Industry good practice for effluent treatment is met by 90% of core PUMA suppliers with wet-processing
facilities
• Industry good practice for air emissions is met by 90% of core PUMA suppliers with significant emissions
• Reduce water consumption at PUMA core suppliers per pair or piece by 15% (based on 2020 baseline)
Relates to United Nations Sustainable Development Goals 6, 14 and 15
EXAMPLES OF THE 10FOR25 ACTION PLAN:
• Ensure regular wastewater testing at relevant suppliers
• Ensure regular air-quality assessments at relevant suppliers
• Support the development of an industry-wide air quality standard
KPIs:
• Percentage of core suppliers meeting good practice standards for wastewater
• Percentage of core suppliers meeting good practice standards for air emissions
• Percentage of water saved per pair/piece
WATER ROADMAP AND RISK ASSESSMENT
In 2021 we developed a water roadmap and conducted a risk assessment using our risk assessment
methodology.
WATER ROAD MAP
Below are some key focus areas for the coming years. The measures below are a continuation of the ones
started in 2021.
• Raise awareness: As a part of Higg FEM training, we provided training to suppliers on how to improve
their score in water and wastewater sections. The cleaner production programmes like Clean by Design
(CbD), and PaCT provided support to suppliers to help them reduce water consumption in selected core
factories. The targets on water consumption reduction and ZDHC wastewater compliance rate were
communicated to the suppliers during supplier meetings. We also reviewed these KPIs in one-to-one
meetings with our core suppliers.
• Knowledge of impact: We continued our Life Cycle Assessment (LCA) journey for our top selling
products. In 2023 we conducted LCA of three types of sports jerseys made of virgin polyester, PET
recycled polyester and RE:FIBRE polyester. We also completed an LCA to compare cotton fabric with a
75/25 blend of virgin and recycled cotton. LCA results are reported under the Products section of this
report. As a part of Higg FEM self-assessment the core suppliers and selected noncore suppliers have
conducted water risk assessments by using either the WRI Aqueduct Tool or the WWF Water Risk
Filter. In 2023, we conducted a waste governance mapping for our top three sourcing countries,
summarised their water policy landscape and mapped key local stakeholders. We also conducted a
water risk assessment for our wet processing core factories.
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• Internal action: Our Material and Development teams continued to launch products with a reduced
water footprint. We created a Microsoft excel tool for internal decision making which compares the
environmental impact of alternative materials. Our suppliers improved their efforts to recycle treated
wastewater, process optimisation, implement rainwater collection etc. to reduce the water footprint in
the supply chain. Some of the case studies are presented in this report.
• Collaboration and partnership: We continue to participate in industry-wide cleaner production projects,
which include water efficiency measures.
WATER RISK ASSESSMENT
WATER RISK ASSESSMENT AT OUR OWN OPERATIONS
In 2022 we added a water risk mapping for our PUMA sites (offices, stores and logistic centres) globally.
Using the WWF Water Risk Filter, we identified 164 sites in areas of water scarcity. For the sites, we
identified the water consumption and compared it to the water consumption of similar sites (offices, stores
and warehouses separately assessed). We also published an environmental handbook for our entities with
recommendations for water-saving measures. In 2023 we followed up with the identified sites and asked for
planned or implemented actions on water savings.
At our headquarters in Herzogenaurach, we collect rainwater on our property and use it in the office and the
surrounding green area. This helps us reduce our freshwater consumption and water costs.
Most of the other PUMA-operated sites globally are rented and both, rented as well as non-rented, none of
the sites use water for industrial processes. Therefore, our ability to reduce water consumption at our sites
is limited to using water-efficient kitchen equipment and sanitary facilities.
WATER RISK ASSESSMENT IN THE SUPPLY CHAIN
DETOX.Live is a public disclosure platform operated by ZDHC that provides an overview of suppliers and
their input and output control performance, including facility wastewater performance according to ZDHC
Wastewater Guidelines. Factory performance, after uploading the test data to ZDHC Gateway Wastewater
Module, is shown in three different colour codes on the public DETOX.Live map: green – facility meets the
ZDHC requirements, red - facility does not meet requirements, and orange - facility does not meet the
requirements but a CAP (Corrective Action Plan) was submitted.
We will use the DETOX.Live platform to check the wastewater performance of new factories that have not
connected with PUMA on the ZDHC Gateway. We can know whether new factories have implemented ZDHC
Wastewater Guidelines, and what their wastewater performance is like.
PUMA has also adopted ELEVATE intelligence (EiQ), a comprehensive suite of supply chain analytics, to:
• Assess our supply chain risks by geography, commodity and issue.
• Complete a risk assessment for suppliers, factories and sites.
• Manage risks that are material for each supplier, factory or site.
In 2023, we conducted a water risk assessment for 62 wet processing core Tier 1 and Tier 2 factories located
in six sourcing countries: Vietnam, China, Bangladesh, Taiwan, Cambodia, Turkey and Indonesia. We used
the WWF Risk Filter and WRI Aqueduct. With the WWF Risk Filter, we assessed basin risk covering water
scarcity, water quality and regulatory risk. With WRI Aqueduct, we assessed physical risk quantity and
quality, as regulatory and reputational risks.
We identified which factories are located in high and very/extremely high-risk areas. Then we looked at their
water KPIs, ZDHC wastewater standards conformance, MRSL compliance rate and their water consumption
reduction initiatives to mitigate water risks.
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Out of 62 wet processing factories, 50 have a high and extremely high-water risk level as per the WRI
Aqueduct. Out of these 50 high and extremely high-water risk level factories, 26 have a FEM 2022 water
module score higher than PUMA average, 31 factories have MRSL conformance rate higher than the PUMA
goal, 35 factories comply with ZDHC wastewater compliance, 15 have water KPIs above PUMA average and
13 factories have wastewater recycling practices. In the coming years, we plan to work with high and
extremely high-risk factories that do not have adequate risk mitigation measures in place. These activities
will include providing training and support in terms of improving MRSL conformance, corrective action
plans for ZDHC wastewater failures, improving Higg FEM water module score, enrolment in resource
efficiency programmes where possible, raising awareness of wastewater recycling and implementing water
reduction initiatives.
WATER GOVERNANCE
In 2023, we conducted a water governance mapping for our top three sourcing countries, namely Vietnam,
China and Bangladesh. We looked at the water policy landscape and identified key stakeholders. Challenges
and opportunities in water and wastewater management were also identified for each of the regions. We
found that water, wastewater policy and regulations are evolving with stringent requirements being
introduced progressively. We also see that interesting water projects are being undertaken in these
countries on water reduction and water recycling.
Vietnam has a national strategy on water, regulations on water security, water protection and development.
The five countries (Vietnam included) under the Mekong River Commission promote and coordinate the
sustainable management and development of water, for the mutual benefit of these countries and their
citizens’ well-being through a 2030 strategy. In addition, Vietnam has a national 2030 Water Resource
Strategy with a view to 2045. There are some fiscal incentives in place, such as tax reduction or exemption
schemes for the effective use of water. There are resource efficiency programmes such as FABRIC
programme by GIZ, HSBC water programme, Clean by design by Aii and WWF’s Greater Mekong Delta,
Vietnam improvement programme by IFC, and Race to Top by IDH. There is a need for more public-private
partnership projects to develop further competence for green business or to encourage green
production. There is also a legislation gap related to groundwater withdrawal.
China has an elaborate regulation on water and wastewater. In 2019, the country introduced the Developed
National Water Conservation Plan. The fourteenth five-year plan released in 2022 focuses on national water
security over the next 100 years, to target flood control and drought relief, utilisation of water resources,
optimal allocation of water resources to prevent uneven water distribution and aquatic ecology protection.
Water/resource efficiency improvement programmes launched in China include WWF’s water stewardship
programme, GIZ’s FABRIC programme, and the Clean by Design programme by Apparel Impact Initiative.
The Institute of Public & Environmental Affairs (IPE) publishes a Water Map, to visualise China’s ground
water and drinking water source quality over the years.
China is still having critical issues with the unbalanced distribution of water resources which leads to water
stress in specific areas, especially the east of the country where industries are blooming, and the population
is rapidly growing.
Bangladesh's latest regulation on water was introduced in 2013 and introduces amendments and new
regulations to promote water conservation in the country. Legal frameworks need to be consistent and
integrated, and account for all major water impacts and risks within Bangladesh. Falling groundwater
tables combined with the projected increased water abstraction rates are likely to threaten industrial
production. The cost of developing alternative water sources is substantial and could hinder growth. The
country is prone to flooding with a very high-risk rating by the WWF Risk Filter. Water Partnership for
Cleaner Textile (PaCT) by IFC and Sweden Textile Water Initiative (STWI) by Stockholm International Water
Institute are a few successful resource/water efficiency improvement programmes implemented in the
country.
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We mapped our core factories in these three countries to evaluate the risks and determine if mitigation
measures through our water-related goals and the factories' own initiative address these risks.
In coming years, we will engage with relevant stakeholders to promote water conservation and recycling in
these key sourcing countries.
LCA WATER DATA
In 2023, we did an analysis of Life Cycle Assessment (LCA) studies conducted during 2021 to 2023 with a
focus on water footprint*. The objective was to come up with an actionable framework for material selection
that would reduce our water footprint. Six footwear products, five apparel products, one accessory
product** and three types of cotton fabrics were analysed. The outcome is summarised below.
Among the three product divisions, the water footprint of apparel products was the highest, followed by
footwear and accessories.
Apparel: We found out that the consumer use phase of apparel products has the highest impact on the total
water footprint (44 to 81% of total lifecycle water footprint), which is due to consumers washing garments at
home. Since the use phase impact is not under our control, we excluded it from our water footprint
analysis. We observed that the fabric dyeing process at Tier 2 factories has a larger water footprint (8 to 29%
of the total lifecycle water footprint excluding the use phase) as compared to other manufacturing
processes such as spinning, knitting, garment manufacturing and packaging. It was found that the water
footprint of cotton is larger than that of polyester material. This is mainly due to the water consumption
during cotton cultivation. This also explains why recycled cotton has a smaller water footprint than virgin
cotton. From a water impact perspective, recycled polyester appears to be the best option. The analysis
indicates that selecting materials with less water impact such as recycled cotton and polyester and
materials made of Better Cotton fibre helps to reduce our water footprint. Better Cotton helps farmers to
use water in a way that is environmentally sustainable, economically beneficial and socially equitable. This
water stewardship approach can improve crop yields, strengthen resilience to climate change, minimise
negative impacts on water quality and enable fair water access for all users in a catchment area. The
analysis also indicates that we should focus on improving the water efficiency of the dyeing mills. This could
include the installation of low-water ratio dyeing machines, waterless dyeing machines and recycling of
wastewater.
Footwear: The Life Cycle Assessment (LCA) of footwear highlights the various environmental implications
connected with various materials and phases of manufacture. Notably, Ethyl Vinyl Acetate (EVA) which is
generally used as a midsole, appears to be a low water footprint substance, providing a better
option. Polyurethane (PU), leather, and natural rubber, on the other hand, have larger water footprints. This
calls for our innovation and material team to focus on having more recycled materials such as recycled
polyester, recycled PU, recycled rubber and recycled EVA. We mainly source leather from tanneries which
are LWG certified. In 2021 LWG released a new version of the LWG audit standard, bringing major changes to
how they assess leather manufacturers, this will help to further reduce the water footprint of leather
footwear products.
*
Water Footprint is expressed in terms of blue water consumption (BWC), which means freshwater consumption sourced
from surface and ground water
** Since there is only one accessory product for which the LCA was conducted so far, there was not enough data to compare
among accessories materials and reach a conclusion. Hence, the analysis on accessory materials was excluded from the
above description.
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MRSL WASTEWATER TESTING
Since 2015 we have increased the number of wastewater tests from 33 to 153 factories and in 2023 we
received 276 Wastewater test reports. 97% of all factories with wet-processing facilities (157 factories have
wet processes) have been covered by tests, and tests show that all these factories have at least a 90%
compliance rate with the ZDHC Wastewater Guidelines (Foundational level). ZDHC has created a three-level
approach to the limits for heavy metals and conventional parameters to promote continuous improvement.
The limits get more stringent as they move from Foundational, Progressive to Aspirational levels.
All 153 suppliers have a ZDHC ClearStream report. ClearStream report, an easy-to-read facility
performance report of ZDHC wastewater conformance, is automatically generated on the ZDHC gateway
platform. To obtain a ZDHC ClearStream report, the factories must conduct wastewater testing following the
ZDHC Wastewater Guidelines at one of ZDHC Accepted Laboratories, and all test results must be uploaded
to the ZDHC Gateway Platform by the laboratory.
Out of 153 factories, 117 factories are fully compliant with all ZDHC Wastewater Guidelines requirements.
Where a wastewater test failed, we helped factories to conduct a root cause analysis and create corrective
actions for wastewater and sludge, using the industry standard template. In 2023, we followed up with those
factories that failed to fully comply with the Wastewater Guidelines, and received ten corrective action plans.
We will continue to follow up through 2024 to obtain corrective action plans and we will evaluate further
measures that need to be taken. We will also follow up on their implementation through wastewater testing
in 2024.
In 2023 we partnered with an accredited third-party laboratory to organise training on chemical
management and wastewater conformance, as well as root cause analysis and corrective actions for non-
conformance. Case studies of conventional parameter failures have been presented in the training.
The overall compliance rate for each category is:
• Conventional wastewater parameters: 99%
• Heavy metals: 99%
• Restricted chemicals (MRSL): 98%
The overall compliance rate for conventional parameters increased by 1% in 2023 as compared to 2022, the
compliance rate for heavy metals was maintained at 99%, and the compliance rate for restricted chemicals
has fallen by 1%. The reason for the lower compliance rate for restricted chemicals this year is that 50% of
the factories do not comply with new substances listed in ZDHC Wastewater Guidelines Version 2.1, which is
a new version that came into effect in 2023.
The conventional wastewater parameters, apply only to suppliers which discharge their wastewater directly
into natural water bodies. Test results show over 90% compliance with the ZDHC Wastewater Guidelines
(Foundational level). For heavy metals and restricted substances, the test results also show over 90%
compliance for each parameter with the ZDHC Wastewater Guidelines. This means we have achieved our
wastewater quality target as a part of our 10FOR25 sustainability goals.
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↗ G.26 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – CONVENTIONAL
PARAMETERS
↗ G.27 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – HEAVY METALS
*
Antimony is subject to an exemption for mills that produce or dye polyester fabric because the antimony is used as a catalyst
for polyester production and it is natural to have antimony in the wastewater. This is acceptable as per ZDHC Guidelines.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
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↗ G.28 PERFORMANCE AGAINST ZDHC WASTEWATER QUALITY GUIDELINE – RESTRICTED
CHEMICALS
SUPPLIER TRAINING
To help our suppliers better understand the requirements set by PUMA and the industry, we trained
suppliers in standards, guidelines, tools as well as methodology for nonconformance investigation and
remediation. Case studies of restricted chemicals and heavy metal parameter failures were used in the
training.
↗ T.38 SUPPLIER TRAINING
Virtual Training
Training
scope
Topics
Number of
factories
Number of
participants
% factories
trained*
ZDHC Wastewater and Root Cause
Analysis & Corrective Actions
Conducted 4 sessions in 3 different
languages
All Tier 1
and core
Tier 2 with
wet
processing
ZDHC WW guidelines V
2.0 and implementation
Root Cause Analysis &
Corrective Actions for
Non-conformance
Wastewater
95
182
61%
*
% of factories joined the training, based on the total number of factories in the scope for this training. 61% of factories
participated in the training as some of the factories are aware of these requirements and methodologies and hence did not
join the training.
In 2023, we partnered with an accredited third-party laboratory to organise a “Chemical Management on
Wastewater Conformance Updates Training and Root Cause Analysis/Corrective Actions” for suppliers not
conformant with the ZDHC Wastewater. Case studies of conventional parameter failures were used in the
training.
A total of four training sessions were conducted in three different languages. More than 180 participants from
95 factories joined. More than 90% of participants were satisfied with the training arrangement and content.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023
2022
PUMA Annual Report 2023
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The training helped the factories’ participants to understand the new ZDHC Wastewater Guidelines, along
with implications and impacts on their facility of the key updates. It also clarified how to conduct a
Wastewater Root Cause Analysis and take Corrective Actions in the event of a non-compliant test result.
After the training, the factories which were not compliant with the ZDHC Wastewater Guidelines, were
required to conduct a Wastewater Root Cause Analysis and provide Corrective Actions. We received ten
Corrective Action Plans from ten factories. We will follow up on their implementation through wastewater
testing in 2024.
In addition, we encouraged suppliers’ chemical management teams to attend in-depth training courses as
part of the ZDHC Academy, which is conducted by ZDHC-approved service providers.
WATER SAVING
In 2023, we expanded the participation of our core Tier 1 and Tier 2 suppliers in cleaner production
programmes to improve energy and water efficiency.
Below are the annual savings from completed and ongoing projects between 2019 and the end of 2023:
• Greenhouse gas reduction: 90,182 tCO2e per year
• Renewable energy: 247 MWp of RE capacity (including offsite wind) added in 2021, 2022 and 2023
• Water saving: 2,401,002 m
3 per year
• Energy saving: 177,168 MWh per year
Apart from our 10FOR25 targets, we have set a target to reduce water consumption by 15% per unit of
products manufactured in 2025 compared to the 2020 baseline.
For further data on water consumption, please refer to the Environmental Key Performance Data section of
this report.
↗ G.29 PUMA CDP WATER SCORE
PUMA’s CDP water score improved from B- in 2021 to B in 2022. Until the end of January, 2024 we retained
our B score. For more information, please visit the CDP website.
C
2020
B-
2021
B
2022
PUMA Annual Report 2023
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↗ CASE STUDY
Water reduction at two suppliers
Tai Hing Zipper, introduced an innovative wastewater treatment and recycling plant for its dying
system in 2022 with an investment of $ 800,000. This advanced biological treatment along with a
water recycling plant, helps in conserving 90% of water for every kilogram of fabric. From its early
stage of implementation to the present, water usage and wastewater output have been significantly
optimised. Previously, consuming 100 m
3 of water per day in the dyeing workshop, the factory has
progressively reduced its water consumption to an average of 10 m
3 per day for the same production
volume. The factory has adopted an innovative technology called the A/O process for the treatment of
wastewater generated from its dyeing operation. This allows for the recycling of the treated
wastewater back into the dyeing process. The factory has also installed a chemical index monitor to
facilitate the monitoring of the treated wastewater quality.
SQUARE Fashions Limited (SFL), a vertically integrated readymade garments manufacturing
company has placed significant emphasis on sustainability and environmental responsibility. To
further enhance these goals, SFL implemented various measures in 2023 to reduce its impact on
water. These include the installation of a water reclamation plant, rainwater harvesting systems,
reuse of steam condensate water, process optimisation, reuse of machine cooling water and raising
awareness amongst employees. These initiatives resulted in a reduction of 36.3% as compared to
2022 in groundwater consumption. This accounts for an absolute annual saving of 1,128,755 m
3 and a
financial savings of 10 million BDT ($ 97,785) in 2023.
↗ T.39 E-KPIS – WATER
1-6
Water
2023
2022
2021
2020
2019
2018
Change
2020/2023
Total Water from own operations (m³)
142,565 147,227 116,829
96,569
89,767 95,291
47.6 %
Public network consumption (m³)
137,651 143,332 116,829
96,569
89,767 95,291
42.5 %
Rainwater consumption (m³)
4,914
3,895
Total Water from PUMA production (core Tier 1&2)
(k m³)
7,322
8,507
8,475
7,128
2,572
2,030
2.7 %
Total Water from PUMA production (Tier 1) (k m³)
2,157
2,551
2,706
2,332
2,572
2,030
-7.5 %
Total Water from PUMA production (Tier 2) (k m³)
5,164
5,956
5,769
4,796
7.7 %
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimations where no real data could be provided
3
Methodological changes over the last three years have influenced results
4
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
5
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
6
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
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Although we do not have any goal for absolute reduction in water consumption from our core suppliers, we
continue to track their water consumption. In 2023, the absolute water consumption has decreased by 7.5%
for Tier 1 suppliers, as compared to the baseline of 2020. This is achieved due to a decrease in production
volume for apparel by 15% and an improvement in water usage efficiency per pair of footwear by 21.5%
during the same period.
For Tier 2 suppliers, absolute water consumption has increased by 7.7% compared to the baseline of 2020,
despite a significant increase in production volume in all Tier 2 divisions (12% for textiles, 7.3% for leather,
and 171% for PU). It is worth noting that water usage efficiency at textile production, the highest contributor
to water usage, has improved by 4.9% (from 103 to 98.3 m
3/ton of fabric), due to the water-saving measures
taken by the suppliers including the installation of water recycling plants by some suppliers towards end of
2022. The increased usage of recycled materials such as recycled cotton and recycled polyester has also
contributed to less water consumption.
AIR EMISSION
AIR EMISSION AT OUR OWN OPERATIONS
In terms of air emissions, there are no significant air emissions to report from our own sites. We have
outsourced all manufacturing to external manufacturing partners and at our largest sites globally we do not
have any industrial processes which could create air emissions. The only exception is our own
manufacturing site in Argentina, which is covered by our supply chain efforts listed below.
For our largest site, our global headquarters, we use district heating and heat pumps for heating, resulting
in zero direct air emissions from the building. This fact was confirmed during our ISO 14001 certification
audit in 2022.
AIR EMISSION IN OUR SUPPLY CHAIN
Since the publication of the ZDHC Air Emission Guidelines was still not been finalised in 2023, we decided to
internally monitor our core supply chain’s performance regarding air emissions. We designed a set of
questionnaires to gather the relevant air emission compliance information for our 131 core factories (Tier 1
and Tier 2), towards local regulations (samples are selected by the factories and tested towards the
requirements provided by the local environmental authorities).
The result shows that 100% of the core factories sampled were compliant with the local regulation for air
emission in 2023.
ZDHC AIR EMISSION GUIDELINES PILOT
In 2023, ZDHC circulated a draft air emission guideline V1.0 to the Air Emissions Task Team for review. We
tested the draft guideline in our supply chain through a pilot study. The objective was to evaluate suppliers'
readiness to comply with ZDHC draft guidelines and to provide feedback for review by the Task Team.
We partnered with a third-party laboratory, Eurofins MTS, to collect chemical samples and conduct tests
from six factories in Vietnam and two factories in China, out of which four are footwear factories and four
are apparel factories. The tests include the measurement of total VOCs (TVOCs) and calculate the Potential
to Emit (PTE), using the methodology referenced in the draft guidelines. We will share this data with ZDHC
to help establish the Foundational limit value for TVOCs in the guidelines. We also tested Hazardous Air
Pollutants/Toxic Air Pollutants (HAP/TAP). Out of 833 collected chemical samples, we detected HAP/TAP in
132 samples accounting for around 15.8% of total samples. Further breakdown indicates 13.2% of samples
are from footwear factories and 2.6% are from apparel factories. However, these factories have a high MRSL
conformance rate which is verified by a third party and they provide appropriate personal protective
equipment to their workers. ZHDC has not yet specified any limits for these air pollutants in the draft
guidelines.
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We also collected air emission samples from three factories (one apparel Tier 2, one footwear Tier 1, one
footwear Tier 2) to test the air pollutants. Tests included air pollutants from point sources i.e. combustion of
fuels and fugitive emissions from the production processes as per the draft guideline. The draft guidelines
do not yet specify any limits for World Health Organization (WHO) pollutants like Particulate Matter (PM),
Nitrous Oxides (NOx) Sulphur Oxides (SOx), and Ozone and globally regulated air pollutants like Carbon
Monoxide (CO) and Volatile Organic Compounds (VOCs); they will be incorporated into future updates to the
guidelines. In the absence of ZDHC limits, these results were compared with local regulation limits
wherever available, and the test results show 100% compliance.
We will communicate the test results with the factories and work to identify the root causes of test results
with high values. We will also discuss our results with ZDHC to find solutions on how to address high values,
particularly for TVOCs in footwear factories.
Note: Since we are following Greenhouse Gas protocol for Greenhouse gas estimation, the calculation of greenhouse gas was
excluded from the scope of this pilot study.
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PLASTICS AND THE OCEANS
Target description:
• Support initiative and scientific research on microfibres, work with core suppliers to reduce microfibre
release
• Research biodegradable polyester for use in PUMA products
• Eliminate plastic bags from PUMA stores and review the impact of hangers and fixtures
Relates to United Nations Sustainable Development Goals 3, 14 and 15
KPIs:
• Tons of plastic bags used in PUMA stores
• Percentage of PUMA offices that have eliminated single-use plastic
• Percentage of plastic packaging recycled
Plastic pollution in our oceans is one of the most urgent challenges to sustainability of our time. As a
company that uses polymers for most of its products, we have a special responsibility to work on this issue.
Avoiding plastic pollution is one of the three pillars of the Fashion Pact, of which PUMA is a founding
member. Also, several countries and regions have formed initiatives to ban certain types of single-use
plastics or plastic bags.
Therefore, we have added Plastics and the Oceans to our 10FOR25 Sustainability Strategy as well as our
sustainability bonus targets.
↗ T.40 ELIMINATION OF SINGLE USE PLASTICS
Sub-targets
2021
2022
2023
Target 2025
Plastic consumer shopping bags (stores, tons)
189
99
0
0
Plastic consumer shopping bags recycled content (%)
80%
80%
NA
Zero plastic bags
Plastic hangers used in stores (stores, tons)
134
160
176 Switch to recycled content or wood
Plastic hangers with 100% recycled content (%)
97%
99.9%
99.9%
100%
Primary and transit* plastic packaging (tons)**
558
2,297
3,057
Switch to recycled content or
paper
Primary and transit* plastic packaging with recycled
content (%) **
100%
99.6%
99.5%
100%
Offices that have eliminated single-use plastic cups
and cutlery (%)
88%
91%
92%
100%
*
Transit packaging from factory to warehouse
** 2023 full year data is proliferated based on actual Q1-Q3 data and 2022 record.
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Plastic shopping bags and single-use plastics aggravate the problem of plastic pollution significantly. By
eliminating them from our stores and office environment, we have set a positive example for our consumers
and colleagues and at the same time reduced our use of plastics by several hundred tons per year.
In recent years we switched our shopping bags to FSC-certified paper bags.
Our stores ordered 430 tons of consumer-facing polyethylene bags in 2019 and 400 tons in 2020. In 2021 our
stores ordered 189 tons. Finally, in 2022 our stores ordered 99 tons of consumer-facing plastic bags. As of
January 1st, 2023, we have replaced all polyethylene bags for consumer use with paper bags or durable
multi-use bags for sale in our owned and operated PUMA stores.
At the same time, we switched other plastic items in our retail stores, such as hangers and shoe fixtures, to
recycled polymers or FSC-certified wood. We also started working on more environmentally friendly
solutions for our B2B product packaging for apparel and accessories, which is also based on polyethylene
bags. As a result of these efforts, we switched our transit packaging B2B plastic bags to 100% recycled
content and also optimised the thickness to save on weight. Our labeling and packaging team is investing
time and resources in exploring environmentally optimised packaging solutions. For example, we piloted
transit bags made from paper in the USA. In 2023 we rolled out transit bags made from FSC-certified paper
for selected products.
According to our zero plastic target for primary product packaging, we also switched most B2C plastic
primary packaging to paper. For the few remaining plastic items like hangtag strings, we worked on non-
plastic or recycled plastic alternatives. At our offices, we have challenged our catering partners and
employees to avoid single-use plastics such as coffee cups, lids, stirring sticks, cutlery or straws. In 2021
88% of our offices globally had already eliminated single-use plastic cups and cutlery. This figure increased
slightly to 91% in 2022 and 92% in 2023.
FSC certified packaging for apparel products
On a product level we finished the pilot experiment of a compostable version of our most iconic sneaker, the
PUMA SUEDE. The pilot included the use of a fully biodegradable outsole made from thermoplastic
polyurethane (TPU). For more information on RE:SUEDE, please refer to the Circularity section of this
report.
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MICROFIBRES
All types of fibres have a propensity to shed to some extent, and understanding the full impacts of their
physical and toxicological presence is a growing area of research therefore we must not limit our focus to
synthetic materials.
Led by science, The Microfibre Consortium (TMC) seeks to understand both the drivers of fibre
fragmentation and, through external sources of research, the impacts on human health and ecosystems,
such that we can collectively take the right actions to mitigate negative impacts. PUMA joined The Microfibre
Consortium (TMC) as one of the signatory members to understand and address the environmental concerns
surrounding fibre fragments (microfibre) as generated from natural and synthetic clothing during
manufacture and the consumer use phase in the industry.
In 2023, we continued with microfibre shedding tests to measure microfibre release from our polyester
products during washing. We conducted 12 tests on selected 100% polyester fabrics following the TMC test
method to quantify fibre loss from fabrics that reflect that found in domestic laundering, during the initial
washing cycle. Fibre release results are expressed as a percentage of mass. The tests results indicate that
microfibre loss from PUMA's fabrics is lower than the average microfibre loss available on the Microfibre
Data Portal. Specifically, PUMA's average 0.0579%, compared to the TMC database average of 0.0587%. For
related definitions, please visit Static.
We have received feedback from TMC regarding the shedding data, and we understand that analysing it is
complex and ongoing. So far, there is not a clear trend showing which yarn or structure type sheds more
among the signatories. TMC has requested more data entries, and we will continue to participate in and
support this study as an industry.
In October 2023, PUMA joined a field trip to King's College London with 40 other delegates. TMC teamed up
with specialist test instrument manufacturer James Heal to hold the first public demonstration of the TMC
Test Method for fibre fragmentation from fabric.
PUMA remains committed to the TMC 2030 roadmap released in September 2021. PUMA has pledged to
support this roadmap and its objectives, including increasing the understanding of fibre fragmentation
through research, implementing mitigation strategies once they become available in the industry, and
contributing to progress through active participation in task teams with a goal of global implementation.
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CIRCULARITY
TARGET DESCRIPTION:
• Set up or join product take-back schemes in major markets
• Reduce production waste to landfills by at least 50% (shared target)
• Develop recycled materials as alternatives to leather, rubber, cotton and polyurethane (shared targets)
Relates to United Nations Sustainable Development Goals 9, 12, 14 and 15
KPIs:
• Percentage of major markets with take-back scheme
• Amount of waste sent to landfills
• Percentage of recycled polyester, cotton, leather, rubber and polyurethane
We are aware that the linear business model currently applied in our industry is far from the ideal concept
of a circular economy. The growing amount of textile waste sent to landfills is an emerging risk. Rethinking
the way we produce and moving towards a more circular business model is one of the priorities of our
Sustainability Strategy over the coming years.
We begin our journey with product design. Building on our Circular Design training with Circular Economy,
we rolled out an e-learning tool on circularity for all PUMA colleagues globally. Based on the PUMA identity
and our material toolboxes we identified circular design approaches around the longevity and cyclability of
our products. The e-learning covers our Circularity Policy, as well as our circular design guidelines.
During 2023, our largest business units held circularity workshops in which the options for transitioning
iconic PUMA products into more circular products were discussed.
CIRCULARITY INNOVATION
In 2021 we launched PUMA Circular Lab, our platform for speaking and learning about circularity together
with our customers. The first project was the RE:SUEDE, an experiment for a biodegradable shoe, made
with chrome-free Zeology Leather, hemp, cotton and a biodegradable TPE sole. It launched in 2022 with a
first batch of 500 pairs. The shoes were worn for six months by participants and then sent back to PUMA. In
December 2022 over 400 pairs of RE:SUEDEs were sent to an industrial composting facility in the
Netherlands, where they were prepared for the composting trial that was completed in 2023. The
composting results were made public so that anyone interested in compostable footwear can use our
lessons learned.
In apparel, we expanded our textile-to-textile recycling programme, which we renamed from RE:JERSEY to
RE:FIBRE. The initiative enables the recycling of fabric waste, as well as worn or unsellable polyester items
(for example unsellable polyester items due to expired licensing contracts) through an innovative chemical
recycling process into new textile items. We continue to partner with several teams for this project:
Manchester United, AC Milan, Olympique de Marseille and Borussia Dortmund as well as the Swiss Football
Federation. We collect used polyester products at the clubs’ fan shops and our own PUMA store in
Herzogenaurach. These products are sorted, and – where possible – enter the recycling stream to make
new polyester products.
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RE:FIBRE activations with BVB, Manchester City and AC Milan
During the Women’s Football World Cup in Australia, the Switzerland team played in jerseys made from
fibre-to-fibre recycled polyester. For 2024 we plan a further and significant extension of the RE:FIBRE
programme to cover the jerseys of all major football clubs and federations, scaling up the programme to
over 1 million produced items.
Swiss national women’s football RE:FIBRE jerseys
In addition to our existing RE:FIBRE initiative on recycled polyester, we started looking into innovative
processes of cotton recycling, such as using 100% (pre-consumer) recycled cotton in selected products and
the opportunity to recycle cotton waste into viscose-like materials.
RECYCLED MATERIALS USAGE
We encourage all our suppliers to reuse and recycle the fabric waste they are creating for PUMA production,
either through applications outside of our industry or ideally, by recycling offcuts into new polyester or
cotton yarns.
We have set circularity targets, for example, scaling up the use of recycled polyester and using recycled
alternatives to leather, rubber and polyurethane (PU), the materials we use most frequently after cotton and
polyester. Our material toolboxes include recycled material options for all these materials. In 2023, we also
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started looking at the potential of using secondary raw materials from innovative footwear separation
technologies.
In 2023, we delivered a million pieces of our downtown collection, made with at least 20% recycled cotton.
The percentage of recycled polyester increased for all product divisions from 14% in 2020 to almost 62% in
2023. The percentage of recycled cotton for our apparel products increased from 0.6% in 2020 to 8.6% in
2023, and for footwear, it increased from 0.5% to 1.6%.
PRE AND POST-CONSUMER WASTE IN THE SUPPLY CHAIN
Around 77% of pre-consumer waste was either reused or recycled by our core Tier 1 suppliers and around
94% of waste was either reused or recycled by our core Tier 2 suppliers in 2023. Compared to 2022, we
observed an increase of 20% in reused/recycled waste for core Tier 1 and an increase of around 4% for core
Tier 2. This increase is mainly due to the adoption of better waste disposal practices by our suppliers to
divert waste from landfills. For textile and fabric waste, 7.2% of waste was sent to incineration by core Tier 1
factories while core Tier 2 factories sent only 1% of waste to incineration.
↗ T.41 PRE AND POST-CONSUMER WASTE
1
Volume of recycled leather, from production waste
1.5 tons
Volume of recycled cotton, from production waste
2,901 tons
Volume of recycled polyester, from post & pre-consumer waste
27,042 tons
Volume of recycled nylon, from post-consumer waste
168 tons
Core T1*
Core T2**
Quantity of pre-consumer waste generated annually
37,379 tons
208,489 tons
% of pre-consumer waste sent to reuse or recycling
76.9%
94.3%
% of textiles and fabric destroyed (sent to incineration)
7.2%
1.0%
*
Core Tier 1 Supplier factories Apparel, Footwear & Accessories (54 factories)
** Core Tier 2 Supplier factories Leather, PU and Textiles (40 factories)
1
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
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↗ T.42 FABRIC WASTE
1-4
Year
Total
Fabric
Waste in
Tons
Reuse &
Recycle
(Tons)
Reuse &
Recycle
(%)
Incineration
(Tons)
Incineration
(%)
Landfill
(Tons)
Landfill
(%)
Footwear core Tier 1
2023
5,681.2
2,503.1
44 %
2,486.7
44 %
691.4
12 %
2022
6,554.4
2,348.0
36 %
4,184.2
64 %
22.3
0 %
Apparel core Tier 1
2023
6,245.5
6,222.2
100 %
23.4
0 %
-
0 %
2022
8.3
8,145.0
98 %
179.0
2 %
-
0 %
Accessories core Tier 1
2023
231.6
231.5
100 %
0.1
0 %
-
0 %
2022
990.6
236.4
24 %
0.1
0 %
754.3
76 %
Textile core Tier 2
2023
1,933.9
1,838.7
95 %
95.3
5 %
-
0 %
2022
2,073.8
2,056.0
99 %
17.9
1 %
-
0 %
Synthetic Leather (PU) core
Tier 2*
2023
170.3
88.2
52 %
82.1
48 %
-
0 %
2022
182.8
181.1
99 %
1.7
1 %
-
0 %
Total
2023
14,262.5
10,883.7
76 %
2,687.5
19 %
691.4
5 %
2022
18,126.1
12,966.5
72 %
4,382.9
24 %
776.6
4 %
*
Fabric waste originated from PU coated material with fabric backing (PU on top + fabric at bottom)
1
Data includes extrapolations or estimations where no real data could be provided
2
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
3
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
4
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Except for Footwear production that still has fabric waste sent to landfills, 100% fabric waste from Apparel,
Accessory, Textile, and Synthetic production was diverted from landfills. Compared to 2022, we observed an
increase in reuse and recycle proportion and a decrease in incineration proportion while disposal in landfill
percentage remains stable. This change was due to the adoption of better waste disposal practices and
reflects a gradual shift towards a circular approach by our suppliers.
In 2023, 95% of fabric waste resulting from PUMA production was diverted from landfill. This is evident as
76% of total fabric waste was either reused or recycled and 19% was sent to incineration. Only 5% of total
fabric waste ended up in landfills.
TAKE-BACK SCHEMES
To demonstrate our responsibility as a producer and to secure options for more circular material flows in
the future, we have set a target to join or offer take-back schemes in all our major markets by 2025.
In 2023 we introduced a new take-back scheme in Switzerland, piloted take-back bins in selected stores in
Argentina and China and expanded our existing take-back scheme in the USA into the category of apparel.
These new expansions complement our existing take-back schemes in Australia, Hong Kong, the USA and
the clubs taking part in the RE:FIBRE project. Our colleagues at PUMA North America continued to work
with Soles for Souls and collected 4,348 kg of used shoes, an initiative where shoes can be donated for
reuse in support of a charitable cause. Our colleagues in Australia were able to collect 3,900 kg of used
products.
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Since September 2019 PUMA customers in Hong Kong have been able to put their used sportswear to good
use and support disadvantaged communities across the world, as we teamed up with the non-profit
organisation, Crossroads Foundation. Hong Kong customers can donate used garments of all brands at
PUMA recycling bins, which have been set up in four selected stores. During 2023, 1,442 kg of used products
were collected. At our German headquarters we collected 385 kg of products through our take-back
scheme, which means that in total we collected over 10 tons of products for recycling or donation with our
take-back schemes globally for the first time. For 2024, we plan to expand our coverage of take-back
schemes further, for example in India and Germany.
SWAP SHOPS
SWAP shops are a free and local exchange where people can pass on things they no longer want, in
exchange for something they need. It helps people refresh their wardrobe without having to shop for
something new. Products get a new chance to be worn again and it promotes sustainability in a fun way. In
2023 the fourth PUMA SWAP Shop was held in Hong Kong to promote a “recycle and reuse” culture. It was a
public event to swap clothes and accessories. More than 460 guests joined and more than 2,320 items were
given away (more than four items per guest). 67 boxes of garments (1,013 kg) were donated to two NGOs:
Crossroads and Redress. Another SWAP Shop took place for the second time at our Headquarters in
Germany for our own employees. Over 400 items were swapped and the remaining ones were donated to
our employees’ charity organisation, Charity Cat. PUMA North America organised its first SWAP shop and
had a very positive response from over 130 employees swapping more than 1,000 articles.
SWAP Shop in PUMA North America
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PRODUCT CARE GUIDELINES
In 2023 we initiated the publication of care and repair guidelines for consumers to help keep their products
in good condition for a longer time. We focus on the most common reasons why people end up throwing
away their sportswear and offer easy tips to treat these problems. We promote natural ways to treat stains
and odours as well as conscious washing and drying practices to reduce user-phase impact.
UNSELLABLE PRODUCTS
We are aware that due to contractual restrictions, a certain number of unsold products must be occasionally
discarded, for example when a license contract with a partner club expires. We have a process in place to
ensure that this happens to PUMA products only in exceptional circumstances. Our production forecasts are
as accurate as possible to actively prevent high product inventories and their intrinsic management costs.
Unsold seasonal products are placed through different channels until they are sold. Returned products that
have not been worn are placed on sale again. Returned products with small defects but in good condition
are donated and only returned products that are very worn or severely damaged need to be discarded. No
new product should be destroyed without the explicit demand of an expiring licensing partner nor a new
product shall be destroyed as a solution for inventory management. We have created a reporting structure
to identify with accuracy the quantity and reasons for such cases. In 2023, the amount of disposed articles
was equivalent to 0.25% of our total material consumption. These products were sent to a recycling facility
(where available). In countries where such recycling facilities do not exist, the products were shredded.
WASTE ROADMAP AND RISK ASSESSMENT
In 2021 we developed a waste reduction roadmap and conducted a risk assessment.
WASTE AT OUR OWN OPERATIONS
At our own operations, the most significant fractions of waste are paper and cardboard (notably from outer
carton boxes, shoe boxes and office paper usage), poly bags used for transport product packaging and
household waste such as organic waste from our canteens. Since we do not operate any industrial
manufacturing facilities (with one exception in Argentina), the amount of hazardous waste created in
PUMA’s own operations is very low at 36 tons. The 36 tons originate from our factory in Argentina (26 tons)
and the exchange of old lighting systems to LED at the PUMA headquarters (9 tons). All hazardous waste is
handled strictly in line with hazardous waste regulations.
During 2023, we reminded our PUMA subsidiaries to engage in waste separation and recycling.
Consequently, we could increase the rate of recycled waste from 44% in 2019 to 64% in 2023.
WASTE IN THE SUPPLY CHAIN
For our supply chain, the waste data published in our report includes material waste, along with factory and
office operational waste: cardboard, paper, plastic, light bulbs, etc. to ensure a comprehensive scope for the
waste generated on production sites. We see plastics, chemicals, oil lubricant waste and e-waste as high
risk. To prioritize our actions, we analysed waste data collected in 2020 and the Higg FEM waste
management score of our core factories.
Below are the key focus areas for the coming years. Some actions were taken in 2023 and are covered below.
• Raise awareness: As a part of Higg FEM training, we have provided training to 210 suppliers factories on
how to improve their score in waste management. As a result of these trainings, the average Higg FEM
score for the waste module increased from 45% in 2022 to 53% in 2023, which was higher than the
industry median of 40% in 2023. The target for reducing the amount of production waste going to landfills
was communicated to the suppliers during the supplier meetings. We also conducted one-to-one
meetings with our core suppliers to review their waste KPIs.
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• Knowledge of impact: Some of our apparel suppliers have initiated the recycling of pre-consumer
cutting waste back into the spinning process. In 2023, we completed a Life Cycle Assessment to compare
virgin cotton fabric with 75/25 blend of virgin and recycled cotton from cotton waste. The details of this
LCA study are provided in the Product section. In 2023, we mapped a waste governance for our top three
sourcing countries, summarised their waste policy landscape and identified key stakeholders.
• Internal action: In last three years i.e., starting in 2021 we focused on better data collection on waste
from supplier’s facilities, and we observed that factories have started reporting comprehensive data on
waste.
• Collaboration and partnership: In 2022, we participated in a project named Closed Loop 2 Balance
(CL2B) in Vietnam, for which the final report was published in 2023. The Global Fashion Agenda
and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) launched The Circular
Fashion Partnership: a cross-sectoral initiative to support the development of effective circular fashion
systems in textile, garment and footwear manufacturing regions, by capturing and recycling post-
industrial fashion waste. This project is currently active in Bangladesh and Cambodia and is to
be launched in Vietnam in 2024. We have had several internal discussions and communication with GFA
and GIZ about this project in Vietnam. We will scale up our textile recycling innovation, RE:FIBRE,
replacing recycled polyester with RE:FIBRE technology in all PUMA football Club and Federation replica
jerseys from 2024 onwards. We also showed that we can successfully turn an experimental version of
our classic SUEDE sneaker into compost under certain tailor-made industrial conditions, as we
published the results of our two year-long RE:SUEDE experiment.
WASTE GOVERNANCE
In 2023, we conducted a waste governance mapping process for our top three sourcing countries, Vietnam,
China and Bangladesh. We looked at the waste policy landscape and identified key stakeholders. Challenges
and opportunities in waste management were also identified for each region. We found that the waste
regulations are evolving with stringent requirements progressively. We also found that interesting projects
are being undertaken in these countries on waste tracking, waste recycling/circularity etc.
Vietnam - Waste regulation in Vietnam has been evolving since 2005, with stringent requirements being
added progressively. Vietnam committed to address marine plastic waste, with a goal of eliminating plastic
waste from both land and ocean-based sources by 2030. In addition, Vietnam has legal requirements for
waste management, which includes the management of domestic solid waste, hazardous waste, and
normal industrial solid waste. Specifically, enterprises are obliged to adopt resource- and energy-efficient
solutions, use environmentally-friendly raw materials, fuels, and materials, apply cleaner production
technologies and programmes, and implement measures to minimize waste generation (Environmental
Protection Law, Chapter VI, Section 2, Article 72).
Limited waste segregation at source, inadequate infrastructure for recycling, a lack of adequate data,
access to financing, a lack of public awareness, and a lack of market for recyclables were identified as key
challenges for waste management in Vietnam.
The Global Fashion Agenda and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) have
launched The Circular Fashion Partnership: a cross-sectoral initiative to support the development of
effective circular fashion systems in textile, garment and footwear manufacturing regions, by capturing and
recycling post-industrial fashion waste. This project will be launched in Vietnam in 2024. Through this
project, we see opportunities to address the current challenges in collaboration with other brands,
manufacturers, collectors, sorters and textile recyclers to segregate, digitally trace and recycle textile waste
into the highest possible value output, ultimately being new products.
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China introduced a regulation to promote the circular economy back in 2004. The country has a specific
regulation to ban the import of waste, which involves penalties for violations such as the illegal dumping of
waste. China also has a policy on textile waste recycling, which aims to achieve a 25% recycling rate for
textiles waste by 2025 and 30% by 2030. It has also set specific targets to produce recycled fibres derived
from 2 million tons of waste textiles by 2025 and 3 million tons by 2030. China provides fiscal incentives for
suppliers under the Environmental Protection Tax Law in which tax on hazardous waste is determined
based on the generation quantity and hence provides an opportunity for suppliers to save costs by adopting
the 3R Principles (Reduce, Reuse Recycle). We see opportunities to engage with key local stakeholders to
improve factories waste management.
Bangladesh introduced specific regulation on the circular economy in 2022. The country has a goal to
achieve recycling of plastic waste by 80% by 2030, cut single-use of plastic by 90% by 2026, reduce
generation of plastic waste by 30% by 2030 and reduce virgin material consumption by 50% by 2030.
PUMA suppliers' have developed cotton pre-consumer textile waste recycling. We increased the use of
recycled cotton from 3.6% of total cotton volume in 2022 to 8.6% in 2023.
The Circular Fashion Partnership has been active in Bangladesh since 2021. Key partners in this project are
actively engaging with the Bangladeshi government to formalize the informal waste management sector.
This includes introducing incentives and tax deductions to incentivize manufacturers to embrace recycling
practices and establishing a comprehensive national policy for the sustainable management of post-
production fashion waste. Through this policy advocacy work, we see opportunities to further increase the
use of recycled cotton in future.
↗ CASE STUDY
Zero waste to landfill
Adhering to the three principles of "Reduction, Recycling, Detoxification", TST Group, is steadily
moving towards the target of "Zero Landfill". TST has two facilities supplying to PUMA, one in China
and the other one in Cambodia. TST has implemented processes for waste reduction such as energy
recovery from sludge through Chip Mong INSEE Cement Corporation in Cambodia, using coal ash
from boiler upcycling to produce bricks in Cambodia, reuse of fabric waste as mop and sending
chemical drums back to chemical suppliers for refilling in both the China and Cambodia facilities.
Through these initiatives along with strict classification and storage of waste, as well as cooperation
with qualified third-party waste treatment companies, TST Group has achieved a 99% waste diversion
rate of a total amount of 7,398 tons production waste generated annually from landfill.
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↗ T.43 E-KPIS – WASTE
1-6
Waste (t)
2023
2022
2021
2020
2019
2018
2017
Change
2022/2023
Change
2020/2023
Total waste from own operations
5,595
4,991
5,215
3,949*
3,644*
4,877
5,293
12%
42%
Recycled waste
3,598
3,007
2,220
1,436*
1,603*
2,282
3,419
20%
151%
Share of recycled waste
64%
60%
43%
36%
44%
47%
65%
78%
Total waste from PUMA
production (core Tier 1 and 2)
38,594
53,667
42,495
29,466
24,205
16,682 31,824
-28%
31%
Share of production waste to
landfill (core Tier 1 and 2)
4.6%
9.7%
10.0%
13.5%
-66%
Total waste from PUMA
production (Tier 1)
21,861
34,642
33,806
23,498
24,205
16,682 14,686
-37%
-7%
Share of production waste to
landfills (Tier 1)
4.6%
12.9%
10.3%
9.5%
-51%
Total waste from PUMA
production (core Tier 2)
16,733
19,025
8,689
5,968
17,138
-12%
180%
Share of production waste to
landfills (core Tier 2)
4.7%
4.0%
9.1%
17.6%
-73%
*
Waste data for PUMA’s own entities in 2019 and 2020 recalculated due to underreporting in these years
1
Figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in Argentina.
All other production is outsourced to independent supplier factories, some warehouse operations are outsourced to
independent logistics providers. Franchised stores are excluded.
2
Data includes extrapolations or estimations where no real data could be provided
3
Methodological changes over the last three years have influenced results
4
PUMA Production (Tier 1) includes core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories)
5
PUMA Production (core Tier 2) includes core Tier 2 supplier factories, Leather, PU & Textiles (40 factories)
6
The values for November and December 2023 were estimated by employing the Exponential Smoothing (ETS) algorithm in
Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after comparing it to alternative
methods, considering its performance against actual historical data, specifically in terms of deviation from the actual values
in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to other methods,
such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per production unit)
from the 12 months of data spanning from November 2021 to October 2022.
Similar to water, even though we do not have any goal for absolute reduction in waste generation for our
core suppliers, we continue to track them. It is also observed that only 0.5% of waste (material waste but
also other factory wastes like boiler ash, sludge from wastewater treatment plants etc.) end up in landfills
for apparel suppliers and 6.8% for footwear suppliers.
We can see that there has been a 7% decrease in production waste for Tier 1 suppliers and 180% increase
for Tier 2 suppliers from 2020. The high percentage increase in Tier 2 suppliers is mainly due to the
improvement in waste data captured by the suppliers. Certain wastes such as residual ash from coal and
biomass boilers that were not captured by the Tier 2 suppliers before are now being included. At the same
time, the production volume has increased by 12% for textiles and 171% for synthetic leather. 76.3% of the
production waste are reused or recycled, 18.8% are incinerated and 4.8% are sent to landfill.
Regarding production waste sent to landfill, both core Tier 1 and Tier 2 suppliers have succeeded in reducing
their landfill percentage compared to 2020 baseline. In 2023, Tier 1 and Tier 2 suppliers have achieved a
reduction of 51% and 73% reduction respectively from the baseline and thus exceeded the PUMA goal of 50%
reduction by 2025. This was achieved due to better waste management practices adopted by the suppliers
and more accurate tracking and reporting of waste data.
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PRODUCTS
TARGET DESCRIPTION:
• 90% of PUMA Apparel and Accessories products contain >50% recycled or certified material
• 90% of our Footwear contains at least one component made of recycled or certified material
• Increase use of recycled polyester (Apparel and Accessories) to 75% by 2025
Relates to United Nations Sustainable Development Goal 12
KPIs:
• Percentage of Apparel and Accessories with 50% recycled or certified material
• Percentage of Footwear with at least one recycled or certified component
• Percentage of recycled polyester used in Apparel and Accessories
The PUMA Environmental Profit and Loss Account (EP&L) attributes more than 50% of our environmental
impact to material and raw material production. Against this background, we have decided to prioritize the
large-scale use of certified or recycled raw materials. In our 10FOR25 strategy, we have set 100% targets for
the raw materials of cotton, polyester, leather, and cardboard.
In addition to measuring the use of recycled or certified materials, we also determine the percentage of all
products made of such materials. As defined in our PUMA Sustainability Index, or S-Index, S-Index-
approved apparel or accessories products contain at least 50% certified or recycled materials by weight. For
footwear, we currently measure S-Index conformance by including one or more main components* made
from certified or recycled materials.
In 2021 we rolled out an e-learning toolkit on our PUMA S-Index for the PUMA family. The training allows
designers, developers, and product managers to understand which materials qualify as more sustainable,
how the PUMA S-Index is calculated, and which certifications need to be in place to externally communicate
on a product level.
In 2023, 85% of our product by volume met our S-Index definition. We are on track to meet our goals of 90%
for 2025.
*
Main component in the upper includes the visible upper and its components, linings, sockliner, and strobel as the only non-
visible component. They can be made of textile, leather, synthetic (PU) or TPU. It excludes trims such as eyelets, laces,
counters, decorations, etc. Main components in the bottom includes outsoles, midsoles, and insoles. They can be made of
Rubber, PU, TPU, EVA. It excludes trims and decorations.
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↗ T.44 CERTIFIED OR RECYCLED PRODUCTS
Product Category
Styles 2023
Volume 2023
Target 2025
Apparel with at least 50 % certified or recycled material
77 %
87 %
90 %
Accessories with at least 50 % certified or recycled material
20 %
40 %*
90 %
Footwear with at least one certified or recycled component
89 %
93 %
90 %
Total
75 %
85 %
90 %
*
Excluding products from stichd; for further details on the reporting scope please refer to the Scope of the Report section.
In 2023 we continued to develop and design our collections and individual styles using recycled materials.
Highlights include the use of our RE:FIBRE technology in our Teamsport jerseys. The jerseys made with
RE:FIBRE are made from at least 95% of recycled textile waste and other used materials made of polyester.
We also continued our Downtown collection from Sportstyle and accessories. The different styles in
Downtown are made using 20-30% recycled cotton, while the accessories are made from at least 20%
recycled content. Another highlight includes the scaling of our Caven shoe, which is made with at least 20%
recycled materials in the upper and at least 10% recycled materials in the bottom. Our Downtown collection
exceeded 1 million pieces in 2023 and we produced 3 million Caven shoes for the Spring Summer and
Autumn Winter collections in 2023 combined.
PUMA Caven contains at least 20% recycled content in the upper and 10% recycled content in bottom of the shoe.
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PRODUCT LIFE CYCLE ASSESSMENT
We continued the Life Cycle Assessment (LCA) studies of our product portfolios in 2023. The outcomes of an
LCA act as a quantifiable measure of our efforts towards embedding sustainability in our products by
exploring ways to make our product value chains safer, cleaner and more sustainable. It also encourages
innovation in our products and processes so that we can meet increasing social and business expectations
regarding sustainability and transparency. Sphera, a leading consulting organisation in the field of LCA,
conducted LCA studies to consider all of the elements of the life cycle, from the overall manufacturing
including supply of material and energy carriers through to the end of life, when analysing the
environmental performance of the products. The LCAs were performed as per ISO 14040 and ISO 14044
requirements. A third-party critical review panel was commissioned to peer review the work and ensure
compliance with the mentioned standards.
LCA OF TWO PRODUCTS
We completed a screening LCA study for two of our top products, the PUMA POPCAT 20 sandals, and the
PUMA Smash v2L shoes, to map the environmental footprint of these products across their entire value
chains (cradle to grave), excluding the consumer use phase. This helped us to understand the hotspots in
the value chain (the maximum impacts in terms of climate, energy and water), and to identify sustainable
options in various phases to improve the product’s environmental footprint.
The results of the analysis can be summarised as follows:
↗ G.30 GLOBAL WARMING POTENTIAL
49.07%
69.61%
40.37%
21.38%
0.29%
0.23%
9.94%
8.78%
Sandals POPCAT20
Shoes SMASH V2L
Manufacturing
Raw Material
End of Life
Use Phase
Shoe PUMA SMASH V2 L, gross
weight 0.955 kg/pair
Sandal PUMA POPCAT 20, gross
weight 0.381 kg/pair
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For the POPCAT20 sandals, the global warming potential (GWP) in kg CO2e was mainly influenced by raw
materials which include polyester fabric, chemicals etc. (49.07%), manufacturing energy (40.37%) and End of
Life (9.94%). Ethylene Vinyl Acetate (EVA) and PU Synthetic are the major contributing materials.
For the SMASHv2L shoes, the global warming potential (GWP in kg CO2e) was mainly influenced by materials
which include body material, parts and components (69.61%), manufacturing energy (21.38%), and end-of-
life (8.78%). Polyester fabric and rubber are the major contributing materials.
Footwear usually does not require extensive cleaning during its lifetime, and hence the impact of the
consumer use phase is negligible. Therefore, the GHG emissions of the use phase from both of the footwear
is not considered. However, the end-of-life phase includes reuse, recycling, incineration, and landfilling
based on European scenarios, which contributes to GWP impacts of 9.94% for the POPCAT20 sandals and
8.78% for the SMASHv2L shoes.
↗ G.31 PRODUCT ENVIRONMENTAL FOOTPRINT
1-2
1
Primary energy is the energy that is harvested directly from natural resources: coal, oil, natural gas and uranium.
2
Blue water is water that has been sourced from surface or groundwater resources and is either evaporated or incorporated
into a product.
For the POPCAT20 sandals, the total global warming potential is 1.61 kg CO2e. The total primary energy
demand is 32.36 MJ with major contributions from ethylene vinyl acetate (EVA) (60.60%) and PU Synthetic
(11.48%). The total blue water consumption is 31.02 kg with major contributions from the raw material PU
Synthetic blend (51.85%) which contains 52% recycled polyester and 48% polyurethane. The remaining
contribution comes from other materials, chemicals, electricity and fuel consumption.
For the SMASHv2L shoes, the total global warming potential is 4.61 kg CO2e. The total primary energy
demand is 90.38 MJ with major contributions from the polyester fabric (30.04%) and rubber (22.04%). The
total blue water consumption is 41.33 kg with major contributions from PU-coated leather (33.41%).
POPCAT 20 sandals have a significantly smaller (65%) carbon footprint than SMASH v2L shoes. One reason
for this is the lower net weight of POPCAT 20, which is 60% lower. Looking at the carbon footprint of
materials, in the case of POPCAT 20, 64.5% of climate impact comes from the Ethylene Vinyl Acetate (EVA)
while for Smash V2L, the majority of the impact comes from polyester and rubber, which accounts for 65.4%
of the carbon footprint of the raw material of the product. This indicates that low-carbon material such as
EVA has also contributed to the lower carbon footprint of POPCAT 20. Looking at energy consumption during
1.61
4.61
Sandals
POPCAT20
Shoes
SMASHv2L
Climate Change
[kg CO2e/product]
32.36
90.38
Sandals
POPCAT20
Shoes
SMASHv2L
31.02
41.33
Sandals
POPCAT20
Shoes
SMASHv2L
Primary Energy Demand (Net)
[MJ/product]
Blue Water Consumption
[kg/product]
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production, POPCAT 20 consumed 52% less electricity than SMASH v2L. This can be attributed to the lower
net weight and the simplicity of the POPCAT 20 product design.
Though the SMASH v2L has a larger carbon footprint than the POPCAT 20, it is much smaller (4.61 kg CO2e)
when compared to previously conducted LCAs of footwear products in 2021 i.e. the Future Rider Play on
(9.49 kg CO2e) and Velocity Nitro (7.6 kg CO2e). Both the Future Rider Play on and Velocity Nitro have a lower
net 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
SMASH v2L is made of recycled materials such as recycled polyester, recycled PU, and recycled rubber
along with recycled packaging materials and the quantity of leather used is much lower, which explains the
lower carbon footprint when compared to the Rider Play on and Velocity Nitro.
The key takeaways from the LCA study are, to make future footwear products lighter, increase the usage of
low-impact materials such as recycled polyester or recycled PU and reduce the use of high-impact
materials such as virgin PU and virgin polyester. The supply chain for footwear products is complex and
involves multiple stages such as raw material extraction, processing, finishing, assembly, distribution and
end of life. The LCA study is used to understand the value chain environmental impacts of our products.
PUMA intends to use the outcomes of the study to raise internal awareness and improve the product’s
environmental footprint by increasing the use of more sustainable materials (recycled or biosynthetic),
improving resource efficiency, optimizing energy use, promoting renewable energy in the value chain, and
enhancing the circularity of our products.
COMPARATIVE LCA VIRGIN POLYESTER VS. PET RECYCLED POLYESTER VS. RE:FIBRE POLYESTER
PRODUCTS
In 2023, PUMA engaged Sphera, Inc. to conduct a comparative Life Cycle Assessment (LCA) of three types of
sports jerseys made from virgin polyester, PET recycled polyester and RE:FIBRE, in our Turkey supply chain.
The RE:FIBRE process uses mainly polyester material from factory offcuts, faulty goods and
used clothes. PET recycled polyester comes from PET plastic bottles.
The LCAs were performed using the “cradle to grave” approach. The objective was to quantify the
environmental impacts associated with the production of these three types of jerseys using the LCA
approach. The products studied were:
The scope of this study includes raw material sourcing and extraction, transportation of raw materials to
the manufacturing location, manufacturing of the jersey products, product distribution, product use phase
and end of life (EoL) of product and packaging.
PET recycled polyester jersey
Net weight 0.964 kg
(88% Mechanically Recycled
Polyester and 12% Virgin Polyester)
RE:FIBRE polyester jersey
Net weight 0.904 kg
(57% Chemically Recycled
Polyester, 34% Mechanically
Recycled Polyester, and 9%
Virgin Polyester)
Virgin polyester jersey
Net weight 1.316 kg
(100% Virgin Polyester)
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The LCA study indicates that per kg, the PET recycled polyester jersey has the smallest carbon footprint
(13.19% lower as compared to virgin polyester jersey) among the three products compared in the study.
Whereas, per kg, the RE:FIBRE polyester jersey has a 7.31% lower Global Warming Potential (GWP) impact
when compared to the virgin polyester jersey. The RE:FIBRE polyester jersey has 57% chemically recycled
fibre which has a higher GWP impact as compared to mechanically recycled fibre but a lower one than virgin
recycled fibre.
The total primary energy demand also exhibits a similar trend, due to same factor as the carbon
footprint. The PET recycled polyester jersey and RE:FIBRE Polyester Jersey are 16.15% and 12.13% lower
respectively per kg than the virgin polyester jersey.
The LCA study also indicates that, the water consumption per kg of PET recycled polyester jersey and
RE:FIBRE polyester jersey is 1.10% and 2.82% higher than per kg value of the virgin polyester jersey.
Although textile-to-textile technology currently has a larger environmental footprint than mechanical
recycling, through the RE:FIBRE programme, PUMA is keen to address the challenge of textile waste via a
long-term solution for recycling. The technology also looks to diversify the fashion industry’s main source of
recycled polyester in garments to make it less reliant on clear plastic bottles. We also believe that this
technology has room to become more energy efficient in future.
Managing waste has become a necessity, which is why PUMA is ramping up its investment into resource-
efficient manufacturing processes in a move to reduce textile waste. Textile waste build-up in landfills is an
environmental risk. Rethinking the way we produce and moving towards a more circular business model is
one of the main priorities of our Sustainability Strategy.
To help make the technical process of RE:FIBRE more digestible for the everyday consumer who wants to
know more, PUMA has created a RE:FIBRE process explainer video, which can be accessed here.
The four-step process of RE:FIBRE:
• Collect and Sort: collecting and sorting textile waste and other previously wasteful materials.
• Shred and Mix: shredding and mixing the collected materials
• Dissolve, Filter and Polymerize: Dissolving the shredded polyester and removing dyes through a
chemical recycling process.
• Melt, Spin, Knit and Sew: The melting makes the newly produced polymers ready to be spun and sewn
into shape to create good as new RE:FIBRE fabric which can be recycled again and again.
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↗ G.32 ENVIRONMENTAL FOOTPRINT OF POLYESTER JERSEYS
1-2
1
Primary energy is the energy that is harvested directly from natural resources: coal, oil, natural gas and uranium.
2
Blue water is water that has been sourced from surface or groundwater resources and is either evaporated or incorporated
into a product.
COMPARATIVE LCA OF 3 TYPES OF COTTON FABRIC
PUMA engaged Sphera to conduct a comparative Life Cycle Assessment (LCA) of one kilogramm of 100%
virgin piece dyed cotton fabric, 75/25 virgin/undyed recycled piece dyed cotton fabric and 75/25
virgin/coloured recycled piece dyed cotton fabric.
Piece dyed fabric is fabric made of grey yarns which are dyed, and is different to yarn dyed fabric: a fabric
that is knitted using dyed yarn.
LCAs are performed using the “cradle to gate” approach. Since this is the “cradle to gate” approach,
consumer use phase and fabric end-of-life impacts for the cotton fibre products were not considered in this
LCA study.
The main objective of the study is to quantify the environmental impacts associated with the production of
these fabrics across various life cycle stages of the manufacturing process, including the supply of raw
materials and energy carriers. The primary data considered for the study was collected from three PUMA
suppliers stretched across two regions, Bangladesh (two factories) and Turkey (one factory). The data
collected includes data for all the production processes such as collection and pre-processing, yarn
spinning, knitting and inspection, pre-treatment, dyeing, compacting and drying.
The LCA study indicates that for one kg of 75/25 virgin/undyed recycled piece dyed cotton fabric, the carbon
footprint is 5.83% smaller compared to the 100% virgin piece dyed cotton fabric. This change was mainly
influenced by the inclusion of 25% undyed recycled cotton material. For 1 kg of 75/25 virgin/coloured
recycled piece dyed cotton fabric, the carbon footprint was smaller by 13% when compared to the 100%
virgin piece dyed cotton fabric. This change was mainly influenced by the inclusion of 25% coloured recycled
piece dyed cotton fabric. When comparing these three fabrics, the environmental impacts of 75/25
virgin/coloured recycled piece dyed cotton fabric were found to be the lowest. This is due to the usage of
25% recycled yarn which is recovered from a coloured fabric and hence requires fewer chemicals and less
energy during the dyeing process.
22.46
19.49
20.81
Climate Change
[kg CO2e/kg of product]
606.31
508.39
532.79
964.28
974.88
991.49
Primary Energy Demand
[MJ/ kg of product]
Blue Water Consumption
[kg/kg of product]
GWP
PED
BWC
PET Recycled Jersey
Virgin Polyster Jersey
RE: FIBRE Polyester Jersey
PUMA Annual Report 2023
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↗ G.33 ENVIRONMENTAL FOOTPRINT OF COTTON FABRICS
Additionally, it was found that the most significant carbon footprint impact is related to the conventional
dyeing of fabric followed by the impacts of cotton cultivation and yarn spinning. Primary energy demand is
largely driven by the cultivation of cotton, followed by conventional dyeing of fabric. Water consumption is
largely driven by cotton cultivation followed by conventional dyeing, compacting and drying processes.
In the study, we also evaluated the environmental impacts of different types of dyeing technologies such as
conventional and Pad-Steam dyeing processes for the three types of fabrics. The Pad-Steam process is a
textile finishing technique used to apply chemicals or dyes to fabric. It is a combination of two steps:
padding and steaming. This process is employed to achieve uniform coloration, improved fabric properties,
and enhanced performance characteristics. This study was conducted at a factory located in Turkey that
uses both technologies. Conventional dyeing for knitted products is typically a batch process in which the
fabric is loaded along with water, chemical and dyestuffs and processed for a fixed number of hours based
on the type of fabric. Whereas, Pad-Steam dyeing is a continuous dyeing process, in which the fabric is dyed
by immersing the fabric in the dye solution for a few seconds, immediately pressed through a roller and
then steamed. Pad-Steam dyeing is more resource-efficient as compared to conventional dyeing. This was
further corroborated by our LCA study. Pad-Steam dyeing was found to have a smaller environmental
footprint than conventional dyeing. It was observed that the Pad-Steam dyeing process has 81.9% less
energy and 80.5% less water consumption as compared to the conventional dyeing process.
It was found that Pad-Steam dyeing for 100% virgin piece dyed cotton fabric has a 34.8% smaller carbon
footprint as compared to conventional dyeing. The corresponding figure for 75/25 virgin/undyed recycled
piece dyed cotton fabric was 36.9% and 25.02% for 75/25 virgin/coloured recycled piece dyed cotton fabric.
Similar trends were also observed for primary energy demand and water consumption.
The LCA study clearly indicates that the inclusion of recycled cotton fabrics has a smaller environmental
footprint and hence is to be promoted for future product development. However, there are currently
technological limitations surrounding increasing recycled cotton to more than 25% in a cotton fabric mix.
This calls for a focus on future innovation in this area. Furthermore, our suppliers could adopt better dyeing
technologies such as the Pad-Steam dyeing process which has a smaller environmental footprint.
8.67
8.16
7.53
Climate Change
[kg CO2e/kg of Fabric]
190.81
170.42
160.20
1,216.26
942.48
912.84
Primary Energy Demand
[MJ/kg of Fabric]
Blue Water Consumption
[kg/kg of Fabric]
GWP
PED
BWC
75/25 Virgin / Undyed Recycled
Piece Dyed Cotton Fabric
Virgin Piece Dyed
Cotton Fabric
75/25 Virgin / Coloured Recycled
Piece Dyed Cotton Fabric
PUMA Annual Report 2023
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MATERIAL ORIGIN
Mapping and assessing risk and impact practices in the lower tiers of the supply chain helps us to identify
opportunities for improvement.
COTTON
In 2023, we sourced approximately 34,000 tons of cotton. To reach our 100% targets for certified or recycled
cotton, we require our suppliers to only source cotton from farms that are licensed or certified as having
good farming and human rights standards, or recycled cotton. 96% of the cotton used in PUMA products
comes from the USA, Brazil, Australia, India, Bangladesh, Vietnam, Indonesia and Turkey.
LEATHER
In 2023, we sourced approximately 3,500 tons of bovine leather. We are working on improving the traceability
of the leather we use by recording the traceability score of our leather manufacturers certified by the
Leather Working Group. The leather used in PUMA footwear mainly comes from the USA (61%), Argentina
(27%), Australia (6%) and Brazil (5%). We also monitor our LWG (Leather Working Group) medal-rated
tanneries' traceability performance. Most suede tanneries work with agents and intermediaries besides
direct tanneries to guarantee a stable sourcing supply. Suede is a byproduct of the full-grain leather
business. This creates a challenge to full traceability. This explains why our suede leather LWG tanneries
have a worse traceability performance than full-grain LWG tanneries. We aim to increase all of our LWG
medal-rated tanneries’ traceability performance over time.
MATERIAL CONSUMPTION DATA
↗ G.34 CERTIFIED OR RECYCLED MATERIALS DEVELOPMENT
1-2
1
Cotton and polyester including apparel and accessories material (including trims)
2
Proliferation for 2023 based on actual data in January - September 2023 and previous data October - December 2022
As in previous years, a significant percentage of our materials can be attributed to cotton either from the
Better Cotton Initiative, recycled or organic cotton, to polyester that is either bluesign® or OEKO-TEX®-
certified, recycled or bio-based polyester, and to leather sourced from Leather Working Group (LWG)-
certified tanneries or recycled leather. In addition, we only use down feathers certified by the Responsible
Down Standard and 84% of our man-made cellulosic (MMCF) is made by green shirt-rated MMCF suppliers
with a proven track record on sustainability based on the Hot Button report from the NGO Canopy.
0
10
20
30
40
50
60
70
80
90
100
2015
2016
2017
2018
2019
2020
2021
2022
2023
Year
Cotton
Polyester
Cardboard
Leather
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Therefore, more than 87% of our apparel, 40% of our accessories and 93% of our footwear products are
already classified in line with the definition in our PUMA Sustainability Index.
Coverage and calculations are more complex for footwear because all of our shoes are made from several
components. The main materials we use are polyester, polyurethane, rubber, leather and nylon. In line with
our earlier targets, we have achieved 99.7% coverage of leather sourced from LWG-certified tanneries.
In 2023, 99.2% of the cotton used came from certified or recycled sources, as did 85% of our polyester.
We hardly used wool in 2023 (6,566 kg). Nevertheless, we see an increased number of factories certified in
line with the Responsible Wool Standard (RWS). We organised a RWS training for our in-scope suppliers in
June 2023, and the positive results were shown by the six RWS-certified factories in our supply chain. We
aim to reach 100% certified wool in 2025.
↗ T.45 DEVELOPMENT OF CERTIFIED OR RECYCLED MATERIAL USAGE*
Cotton
Apparel
Accessories
Footwear
Total
Better Cotton
90.6 %
23.2 %
8.0 %
90.3 %
Recycled
8.6 %
16.7 %
1.6 %
8.6 %
Organic
0.3 %
0.3 %
0.3 %
Conventional
0.6 %
59.7 %
90.5 %
0.9 %
Polyester
Apparel
Accessories
Footwear
Total
Recycled
68.4 %
29.3 %
56.5 %
61.8 %
Oekotex® / bluesign®
30.3 %
54.5 %
8.1 %
23.3 %
Sorona®
0.1 %
0.2 %
0.1 %
Conventional
1.2 %
16.2 %
35.2 %
14.8 %
Manmade cellulosics
Apparel
Accessories
Footwear
Total
Green Shirt-rated fiber producers**
82.4 %
72.7 %
Ecovero®
12.7 %
0.7 %
11.3 %
Conventional
4.9 %
100.0 %
99.3 %
16.0 %
Polyamide (nylon)
Apparel
Accessories
Footwear
Total
Recycled
26.4 %
60.2 %
2.0 %
19.3 %
Oekotex® / bluesign®
70.8 %
38.2 %
13.9 %
46.9 %
Conventional
2.8 %
1.6 %
84.2 %
33.8 %
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Leather
Apparel
Accessories
Footwear
Total
LWG medal-rated tannery
99.96 %
99.7 %
Recycled
0.04 %
0.04 %
Conventional
100.0 %
0.22 %
Rubber
Apparel
Accessories
Footwear
Total
Synthetic
34.7 %
52.6 %
93.9 %
93.0 %
Natural
65.3 %
32.5 %
1.2 %
1.9 %
Recycled
15.0 %
4.9 %
5.1 %
PU
Apparel
Accessories
Footwear
Total
Recycled
2.4 %
1.5 %
2.4 %
2.4 %
Oekotex® / bluesign®
93.4 %
0.8 %
Water-based
0.02 %
1.1 %
1.0 %
Bio-based
0.4 %
0.4 %
Conventional
4.3 %
98.48 %
96.1 %
95.4 %
Down
Apparel
Accessories
Footwear
Total
RDS certified
100 %
100 %
*
Figures include trims and exclude licensee production as well as production from stichd. For further details on the reporting
scope, please refer to the Scope of the Report section.
** Green Shirt-rated fiber producers, as set by the annual Canopy Hot Button report, encourage existing fiber suppliers to
commit to CanopyStyle and a Canopy Audit.
↗ T.46 CERTIFIED OR RECYCLED MATERIALS BY PRODUCT DIVISION*
2023
2025 target
Apparel
Certified or recycled cotton
99.4 %
100 %
Certified or recycled polyester
98.8 %
100 %
Certified or recycled MMCF
95.1 %
100 %
Certified or recycled PU
95.7 %
NA
Accessories
Certified or recycled cotton
40.3 %
100 %
Certified or recycled polyester
83.8 %
100 %
Certified or recycled MMCF
0.0 %
100 %
Certified or recycled leather
0.0 %
100 %
Certified or recycled PU
1.5 %
NA
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Footwear
Certified or recycled cotton
9.5 %
100 %
Certified or recycled polyester
64.8 %
100 %
Certified or recycled MMCF
0.7 %
100 %
Certified or recycled leather
100 %
100 %
Certified or recycled PU
3.9 %
NA
L&P paper/cardboard products**
Recycled and/or FSC-certified
99.4 %
100 %
*
Figures include trims and exclude licensee production as well as production from stichd. For further details on the reporting
scope, please refer to the Scope of the Report section.
** Including outer cardboard boxes, which were excluded in previous years.
In 2023, the total number of GRS/RCS certified factories has increased to 159 from 145 in 2022. This indicates
a higher uptake of recycled material due to the launch of more sustainable products in our product mix.
In 2023, we saw an increased number of factories certified by the Responsible Wool Standard.
↗ T.47 NUMBER OF FACTORIES WITH CERTIFICATION
1
Number of factories certified
GRS/RCS
GOTS
OCS
RDS
RWS
LWG
Apparel & Accessories Tier 1
and Tier 2
128
30
23
6
6
NA
Footwear Tier 1 and Tier 2
31
0
1
NA
1
NA
32 Gold
Leather Tanneries
4 Silver
1
GRS: Global Recycling Standard, RCS: Recycled Claim Standard, OCS: Organic Content Standard; GOTS: Global Organic
Content Standard; RDS: Responsible Down Standard, RWS: Responsible Wool Standard, LWG: Leather Working Group.
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BIODIVERSITY
TARGET DESCRIPTION:
• Support the industry in setting a science-based target for biodiversity
• 100% cotton, leather and down procured from certified sources (shared target)
• Zero use of exotic skins and hides
Relates to United Nations Sustainable Development Goals 14 and 15
The world’s biodiversity experts agreed to conserve 30% of the world’s land and oceans by 2030. Biodiversity
is also inextricably linked to climate change.
Consequently, we have dedicated one of our 10FOR25 sustainability target areas to biodiversity. Most of
PUMA’s biodiversity impact is based in the supply chain, particularly to the usage of agricultural raw
materials. However, we also include biodiversity checks in our annual environmental data collection for our
own offices, stores and warehouses around the globe.
BIODIVERSITY POLICY
As part of the Fashion Pact, we are committed to supporting the development of science-based targets
related to biodiversity.
In 2021 we published the PUMA biodiversity policy and animal welfare policy- signed off by our Board of
Management- to create a framework for our approach to biodiversity and animal welfare. These policies are
available for download on our website.
This includes our commitments:
• as a supporting partner of the CanopyStyle initiative, to only source our viscose from Green Shirt-rated
suppliers in order to protect endangered forests and species.
• to source the leather used in PUMA products solely from manufacturers who implement industry best
practice standards of environmental management and traceability, such as the leather working group.
• to source all our paper and paper-based packaging from recycled sources and/or Forest Stewardship
Council-certified sources. PUMA acted as a partner of Canopy’s Pack4Good initiative to collectively
reduce any risk of sourcing from ancient and endangered forests by 2022 and promoting next-generation
solutions.
At PUMA we care for the welfare of animals. We do not use animal products which originate from animals
that have been treated inhumanely. Therefore, we aim to implement high welfare and traceability standards
and have published an Animal Welfare Policy. PUMA consults animal protection organisations on a regular
basis to review our policies and actions. As a sign of our commitment to animal welfare, we joined the Fur
Free Retailer programme and phased out the use of kangaroo leather in 2023.
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BIODIVERSITY IN OUR OWN OPERATION
We checked via our annual environmental reporting campaign and confirmed that none of our PUMA sites
are located within a protected area. We have identified one site in South Africa, as being located next to a
protected area, which holds a rare species of the plant, Renosterveld Finbos. This site is an office location,
and is fenced off from the protected area, so any negative impact on these plants can be ruled out.
There are green roofs which offer additional habitats for insects as well as wildflower meadows and
beehives on our headquarters in Herzogenaurach, as well as on our (outsourced) German central logistics
centre.
BIODIVERSITY IN OUR SUPPLY CHAIN
Many species, including plants, animals, bacteria and fungi are being threatened with extinction due to
human activities such as deforestation, putting Earth’s biodiversity at risk. Apparel supply chains are
directly linked to soil degradation, conversion of natural ecosystems and waterway pollution. Two-thirds of
apparel shoppers say that limiting the impact on climate change is now more important to them now than
before COVID-19 (McKinsey: Biodiversity – The next frontier in sustainable fashion).
PUMA is a signatory to the Fashion Pact, a global initiative of companies in the fashion and textile industry
(ready-to-wear, sport, lifestyle and luxury), all committed to a common core of key environmental goals in
three areas mitigating global warming, restoring biodiversity and protecting the oceans.
Biodiversity loss and climate change are interdependent and mutually reinforcing. For example, protecting
forests could help reduce greenhouse gas emissions. In turn, the rise of global temperatures increases the
risk of species becoming extinct. In 2019 PUMA published its science-based emissions target (SBT) with the
SBT Coalition and joined the Fashion Pact. In 2023 an updated and 1.5 degree aligned science-based
emissions target was approved for Scope 1 and 2 by SBT Coalition.
Please see the Climate section of this report to find out about our climate action and progress.
↗ T.48 SUSTAINABLY SOURCED NATURAL MATERIALS
Sub-targets
2023*
2022*
2021
Target 2025
Science Based Target (SBT)
Fund Biodiversity
Landscape Report
Fund Biodiversity
Landscape Report
Joined Fashion
Pact activities on
biodiversity
SBT set
Cotton (BCI** and/or recycled)
99.2%
99.9%
99%
100%
Leather (LWG-certified tanneries)
99.7%
100%
99.9%
100%
Down (RDS-certified)
100%
100%
100%
100%
Sustainably sourced viscose / MMCF
84%
97%
38%
100%
Cardboard and paper (FSC and/or recycled)
99.4%***
99.4%***
99% (product
packaging supply
chain)
100%
*
Including trims and excluding licensee production
** Better Cotton Initiative (BCI) principle: Biodiversity and Land Use is one of the seven Better Cotton Principles and Criteria.
Management practices address identifying and mapping biodiversity resources, identifying and restoring degraded areas,
enhancing populations of beneficial insects, ensuring crop rotation and protecting riparian areas.
*** Including outer cardboard
Most of the negative impact on biodiversity comes from three stages in the value chain – raw material
production, material preparation and processing, and end of life.
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To mitigate the risk of biodiversity loss due to the production process, we address environmental pollution
risk through our targets and supplier programmes related to climate, chemicals, water and air.
In 2021 we developed roadmaps for water and waste, which can be found in the Water and Air, and
Circularity sections of this report. In 2022 we developed a biodiversity roadmap using the Fashion Pact
Biodiversity Strategy Tool Navigator that is in line with SBTN recommendations.
At cotton farming level, Regenerative Agriculture practices aim to reduce the impact of production on soils
and promotes soil health by restoring the soil’s organic carbon. Through our partnership with Better Cotton,
we support regenerative cotton farming practices. BCI farmers have to follow these two principles, among
others:
• Care for the health of soil: This principle requires farmers to develop a Soil Management Plan. The plan
should include practices that contribute to maintaining and enhancing soil structure and soil fertility,
and continuously improving nutrient cycling.
• Enhance biodiversity and use land responsibly: This principle requires Better Cotton farmers to adopt a
Biodiversity Management Plan to conserve biodiversity on and around their farm. This plan includes
regenerative farming practices such as ensuring crop rotation, which helps with soil regeneration.
BIODIVERSITY ROADMAP
Scope: Cotton, Leather, Rubber, Paper, MMCF, Synthetics, Wool
Below are some key focus areas for the coming years. Some measures were implemented in 2022 and 2023
and are covered in this report.
• Raise awareness: We see the need to raise awareness internally and will be developing an e-learning on
biodiversity for our staff. We also see the need to increase the awareness of our consumers. We aim to
maintain transparency to keep a strong relationship with stakeholders while providing information about
biodiversity actions. In 2022, PUMA sponsored the Biodiversity Landscape Analysis Report as an
opportunity to foster collaboration and knowledge-sharing in biodiversity. Together with Textile
Exchange, Conservation International and the Fashion Pact, the Biodiversity Landscape Analysis Report
aims to provide a common reference point on the topic of biodiversity in the textile industry, and to offer
concrete pathways for brands and retailers to deepen their engagement. The report, which was
published in 2023 intends to help companies of all sizes and maturities to begin or continue their
biodiversity journey.
• Knowledge of impact: We will explore traceability tools and conduct impact assessments, starting with
leather and rubber. We collect material and packaging consumption data on an annual basis for the
country of origin. For example, only a small percentage of the total leather used in PUMA products
originates from South America, where deforestation is occurring at a rapid pace. Our EP&L identifies
how the environmental impact is distributed along our value chain, for example, land use change per
country, material type and tier level. The potential financial impact on land use was estimated to be
approximately € 100 million in our 2023 EP&L.
• Internal action: We will define a KPI to be included in a supplier scorecard (environmental and chemical)
and set biodiversity targets as well as traceability targets, starting with leather. We set goals to reach
100% cotton, leather, viscose, paper packaging and down-procured from certified sources in 2025. Both
cotton farming and cattle ranching require extensive land use and are known to reduce biodiversity,
99.2% of cotton used in PUMA products is BCI or recycled cotton. 99.7% of the leather used in our foot-
wear is sourced from Leather Working Group (LWG) medal-rated tanneries. Leather traceability is a first
step towards reducing deforestation. We monitor our LWG medal-rated tanneries' traceability
performance and have joined the LWG Traceability working group. We partner with the NGO, Canopy, a
Canadian non-profit organisation with the mission to protect the world’s forests, species and climate,
and to help advance indigenous communities’ rights. We aim to ensure that our sourcing of man-made
cellulosic materials (such as viscose) as well as paper and cardboard, does not contribute to de-
forestation. 99.4% of our paper packaging is either recycled and/or FSC-certified. We commit to sourcing
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100% of our viscose from suppliers committed to reducing the risk of sourcing from ancient and
endangered forests. In 2023, 84% of viscose was sourced from Green Shirt-rated suppliers. We hardly
used wool (6,566 kg in 2023), but we have initiated Responsible Wool Standards certification. We aim to
reach 100% certified responsible wool by 2025.
• Collaboration and partnership: PUMA joined the Fashion Pact, a global coalition of companies in the
fashion and textile industry that is committed to stopping global warming, restoring biodiversity and
protecting the oceans. PUMA joined the Fashion Charter, and committed to sourcing 100% of priority
materials as preferred materials by 2030 (material for which no natural ecosystems are converted or
deforested). In 2021 we engaged with Canopy, who helped us develop our policy on forest protection. We
also engaged with Canopy‘s initiatives: CanopyStyle and Pack4good. Through these initiatives, we started
investigating the next generation of raw materials with a focus on biobased materials, such as wheat
straw, as a partial substitute for paper in our shopping paper bags.
BIODIVERSITY RISK ASSESSMENT
In 2023, we conducted a biodiversity risk assessment for our key raw materials such as cotton, polyester
and leather. For cotton and polyester, we used the Materials Impact Explorer tool provided by Textile
Exchange. For leather, we used the Biodiversity Risk and Impact Dashboard of Fashion Pact. PUMA is
currently taking steps to mitigate biodiversity risks and address environmental pollution risks through our
targets and supplier programmes related to the climate, chemicals, water and air.
We evaluated the environmental risk of rubber using the EiQ platform from Elevate. EiQ is a data-driven
supply chain Environmental, Social, and Governance (ESG) due diligence platform used by businesses to
enhance ESG risk management. The environmental risk encompasses water use, non-GHG air pollutants,
terrestrial ecosystem use, soil pollutants, solid waste and water pollutants. We also mapped our sourcing of
these materials by country.
For cotton and polyester, we mapped our material consumption by country of origin using the Materials
Impact Explorer tool to evaluate the potential impact on biodiversity in terms of changes in the state of
nature (quality or quantity) which may result in changes to the capacity of nature to sustain social and
economic functions. We also evaluated the risk of dependency in terms of environmental assets and
ecosystem services that an organisation relies on to function. The dependency risk rating for recycled cotton
and recycled polyester is not applicable as per the tool used. The outcome of the assessment is
summarised below. The risk profile of a few countries from which PUMA is sourcing cotton and polyester
is not available in the tool. However, such countries represent less than 5% of our sourcing volume for
cotton and 13% for polyester.
As a next step, we will look at a collaborative approach and join programmes with third-party initiatives to
understand governance challenges.
Cotton: In 2023, we sourced 63% of cotton from the USA, followed by Brazil (15%) and Australia (8%). These
three countries have high a risk rating for potential impact. 4% of cotton is sourced from India which a very
high-risk country.
In terms of dependency risk, the USA, Brazil and Australia are categorised as high-risk countries, whereas
India is categorised as a very high-risk country.
We have required our suppliers to source only cotton grown in farms that are licensed as having good
farming and human rights standards or recycled cotton from factories that are either Global Recycled
Standard (GRS) or Recycled Claim Standard (RCS) certified in 2025.
PUMA is taking steps to mitigate the biodiversity risks associated with the cotton sourcing. These include
the adoption of BCI cotton, increased usage of recycled cotton, focusing on innovation to increase the share
of recycled cotton in our products, conducting Life Cycle Assessment of products and materials to evaluate
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181
environmental impact in different lifecycle stages and engaging with textile exchange to stay informed on
industry best practices.
We collect material consumption data on an annual basis along with the country of origin and require our
suppliers to keep all the supportive documentation at disposal. We have also established an on-going due
diligence programme with our partner laboratory in Germany where we regularly test samples of cotton
finished garments before shipment. This further strengthens traceability and control across our supply
chain, from the raw material to the finished products.
Through our partnership with Better Cotton, we support regenerative cotton farming practices. Better
Cotton Soil Health principles require farmers to develop a Soil Management Plan. The plan should include
practices that contribute to maintaining and enhancing soil structure and soil fertility, and continuously
improving nutrient cycling.
Better Cotton Biodiversity principles require Better Cotton farmers to adopt a Biodiversity Management
Plan to conserve biodiversity on and around their farms. This Plan includes regenerative farming practices
such as ensuring crop rotation, which helps with soil regeneration. Biodiversity loss and climate change are
interdependent and mutually reinforcing. Protecting forests, for example, could help reduce greenhouse gas
emissions.
Through our partnership with Better Cotton, we also support cotton farmer producers for climate-friendly
practices, Better Cotton has set the goal of reducing greenhouse gas emissions by 50% per ton of Better
Cotton lint produced by the end of the decade.
In 2023, the share of BCI cotton was 90% and recycled cotton made up 8.6% of all cotton sourced by PUMA.
Polyester: We sourced 79% of our polyester from China in 2023, followed by Taiwan 9.2% and Vietnam
7.4%. We sourced both virgin polyester and recycled polyester from China, whereas we sourced only
recycled polyester from Taiwan and Vietnam. China has a very high-risk rating in terms of the potential
impact of virgin polyester. Recycled polyester is rated as medium risk irrespective of country of origin by the
Textile Exchange tool.
In terms of risk related to dependency, China, Turkey, South Korea, Japan and Indonesia are rated as very
high-risk countries for virgin polyester whereas the USA and Germany are considered as high-risk
countries. However, apart from China, we source a negligible volume (around 1%) from high, and very high-
risk countries.
We have required our suppliers to source only polyester-certified to Bluesign/ Oekotex, or recycled polyester
from factories that are either Global Recycled Standard (GRS) or Recycled Claim Standard (RCS) certified in
2025. PUMA has joined the Textile Exchange polyester challenge, since our 2025 goal of 75% recycled
polyester is aligned with this challenge. While most of our recycled polyester to date has been made
from PET bottles, PUMA launched the innovative RE:FIBRE programme, and can repurpose collected textile
waste and other used materials to create new textiles. We engaged our core fabric manufacturing plants in
energy efficiency programmes and are helping them to transition to 25% renewable energy processing in
2025. We monitor and report chemical discharges, and work to eliminate pollutant chemicals.
In 2023, we sourced a bio-based, high-performance polyester fibre known as Sorona, which constitutes
0.11% of our total polyester consumption. Sorona contains over 20% bio-based carbon, which helps reduce
the environmental impact without sacrificing quality and performance. Sorona is produced using a
fermentation process which utilizes corn sugar as the main ingredient.
Leather: The Fashion Pact Dashboard allows us to assess overall risk in terms of biodiversity loss and land
use area. However, biodiversity risk specific to leather usage by a brand or company cannot be evaluated by
using this dashboard. We plan to explore a more specific tool for leather in future.
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In 2023, we sourced 61% of our leather from the USA, followed by Argentina (27%), Australia (6%) and Brazil
(5%). The risk assessment indicates that the USA has a risk rating of very high for land use impact and high
risk for biodiversity loss, while Argentina has a very high-risk rating for land use impact and a medium risk
rating for biodiversity loss. Australia has a medium-risk rating for both impact categories while Brazil has
very high-risk rating for both impact areas.
PUMA is taking several steps to mitigate the biodiversity risks associated with leather sourcing. These
include sourcing leather from LWG-rated tanneries, setting goals for sourcing deforestation-free leather,
and focusing on innovation in the development of recycled and other bio-based alternatives. We engage with
Fashion Pact, Textile Exchange and the Leather Working Group to remain updated about industry best
practices.
We have committed to sourcing all the bovine leather used in our products from verified deforestation-free
supply chains by 2030 or earlier launched by global non-profits Textile Exchange and the Leather Working
Group. The initiative aims to create equitable, transparent, and deforestation-free leather supply chains. The
cross-sector initiative is aimed at galvanizing brands into action to end the deforestation and conversion of
natural ecosystems linked to leather sourcing. In doing so, it looks to protect wildlife habitats and
biodiversity, preserve carbon stocks to mitigate climate change, and protect human rights.
Close to 100% of the leather that PUMA currently sources comes from Leather Working Group-certified
tanneries. This means that the leather used in PUMA products comes from manufacturers who are working
to implement industry best practices of environmental management and traceability. PUMA currently
monitors its LWG medal-rated tanneries’ upstream traceability performance.
However, around 76% of the leather used at PUMA is suede, a byproduct of the full-grain leather business.
The challenge faced currently by PUMA and others in the industry is that most suede tanneries work with
agents and intermediaries alongside direct tanneries, to guarantee a stable supply which creates a
challenge to have full traceability at the cattle ranch level.
Our innovation team has worked to address the technological limitations of a shoe designed for composting
and launched the RE:SUEDE experiment. In 2022, 500 participants were asked to wear their RE:SUEDEs for
six months before returning them to PUMA for the next stage of the experiment. A total of 412 pairs of worn
RE:SUEDEs were returned to PUMA and sent to our industrial composting partner Valor Composting – a
family business that takes a different approach to waste. We discovered that it is possible to turn the
RE:SUEDE into Grade A compost under specific industrial conditions provided by Ortessa. RE:SUEDE is
mainly made up of zeolite-tanned suede leather, hemp fibres, biodegradable TPE and organic cotton. The
zeolite tanning process is an innovative approach to in tanning chemicals, which use mineral zeolite and is
free from toxic substances such as chrome, heavy metal and aldehyde. We will continue to innovate with our
partners to determine the infrastructure and technologies needed to make the process viable for a
commercial version of the RE:SUEDE, including a take-back scheme, in 2024.
Synthetic Rubber: We sourced, 74% of our synthetic rubber from China, followed by Vietnam 14% and South
Korea 4%. China and South Korea are high-risk countries, while the risk profile for synthetic rubber from
Vietnam is not available on the EiQ platform. High risks are Greenhouse Gas emissions, water use and solid
waste.
We have not yet mapped the manufacturing plants supplying synthetic rubber to our outsole manufacturers.
As part of our 10FOR25, we work on developing recycled materials as alternatives to rubber. In 2023, 5% of
synthetic rubber was recycled. We engage our strategic outsole suppliers in Higg FEM (environmental
performance tool measurement which includes energy use and greenhouse gas emissions, water use,
wastewater, emissions to air and waste management) and work with them to eliminate pollutant chemicals.
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Natural Rubber: In 2023, we sourced 29% of natural rubber from Vietnam, followed by Brazil 25%,
Pakistan 13%, and Thailand 5%. Vietnam is categorised as an extreme risk country, while risk profiles for
natural rubber from Brazil, Pakistan and Thailand are not available on the EiQ platform. The main high risks
are water use and impact on ecosystem. In 2023, only 2% of the rubber used in our products was natural
rubber. We aim in future to only source FSC certified rubber. FSC certification include adopting standards to
maintain, conserve, and/or restore the ecosystem and environmental values of managed forests and avoid,
repair, or mitigate negative environmental impacts.
↗ G.35 PUMA CDP FOREST SCORE
PUMA’s CDP Forestry score improved from C in 2021 to B- in 2022. Until the end of January, 2024, we
retained our B-score. PUMA’s rating is better than the average performance of the sector (textile and fabric
goods) which has an average rating of C. The overall global average rating stands at C. For more
information, please visit the CDP website.
↗ T.49 E-KPIS - PAPER
1-4
*
Including paper bags, office paper and cardboard consumption
** Including outer cardboard boxes
1
PUMA figures include PUMA owned or operated offices, warehouses and stores. Includes our own production sites in
Argentina. All other production is outsourced to independent supplier factories, some warehouse operations are outsourced
to independent logistics providers. Franchised stores are excluded.
2
PUMA production figures include core Tier 1 supplier factories, Apparel, Footwear & Accessories (54 factories) and core Tier
2 supplier factories, Leather, PU and Textiles (40 factories).
3
Data includes extrapolations or estimates where no real data could be provided.
4
Methodological changes over the last three years have influenced results.
C
2020
C
2021
B-
2022
Paper (tons)
2023
2022
2021
2020
2019
2017
% Change
2023/2022
% Change
2023/2017
Paper and cardboard
consumption PUMA*
5,374
5,021
4,152
2,638
2,281
2,756
7%
95%
Certified or recycled paper and
cardboard consumption PUMA
4,911
4,393
3,306
1,848
1,818
2,025
12%
143%
Percentage of certified or
recycled paper consumption
91%
87%
80%
70%
80%
74%
Paper and cardboard
consumption from PUMA
production (shoe boxes,
hangtags)
25,602** 30,656** 19,670**
18,538
14,863
14,129
-16.5%
81.2%
Percentage of certified or
recycled paper and cardboard
consumption from PUMA
production
99%**
99%**
88%**
99%
100%
n/a
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ENVIRONMENTAL KEY PERFORMANCE DATA
Г
The PUMA Environmental Profit and Loss Account, or EP&L, calculates the environmental impact of
PUMA's activities in financial terms across six categories from raw material production to the PUMA store.
While the EP&L is not a precise measurement tool, it helps to show the categories and stages of the value
chain in which the impact is greatest and therefore gives a good indication of where we should focus our
efforts.
The EP&L methodology, was developed in 2011 by PWC and Truecost, and later refined by Kering with the
help of PWC. It mainly relies on material input and spending data.
Over the last years, we have added primary data for our Tier 1 and Tier 2 suppliers and developed specific
EP&L emission factors for major materials used, such as Better Cotton.
However, we are still in the process of fully aligning our EP&L methodology for Tiers 3 and 4 with internal
and external standards. As a result, the table below differs from our Scope 3 emission calculation in the
Climate section and also results in a high water value for Tier 3 due to some wet processing for leather and
polyester being attributed to Tier 3.
We will continue to work on the alignment of methodologies to strengthen the EP&L as a valuable risk
assessment and information tool.
↗ G.36 EP&L RESULTS 2023
Air pollution
GHG emission
Land use
Waste
Water use
Water pollution
Tier 0
Own
operations
Tier 1
Product
manufacturing
Tier 2
Component
manufacturing
Tier 3
Raw material
processing
Tier 4
Raw material
production
2%
9%
14%
28%
48%
Total
EP&L Value 2023: € 415 million
10%
33%
21%
4%
11%
22%
100%
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↗ G.37 EP&L TREND 2020 – 2023
From our EP&L results, we can conclude that the production (48%) and processing of raw materials (28%) is
responsible for the vast majority of the environmental impact from a process point of view, while
greenhouse gas emissions (33%), water pollution (22%) and land use (21%) are responsible for over half of
all environmental impact measured by the EP&L in terms of impact categories.
This confirms our strategy of transitioning to the use of low-impact materials at scale, while focusing on the
reduction of greenhouse gas emissions across our supply chain.
The EP&L trend over the last years shows that the EP&L value is growing slower than sales. This means
that while the overall impact was growing, we were able to reduce the EP&L value relative to sales. In 2023,
we achieved an absolute reduction.
└
PRODUCT/MATERIAL-RELATED E-KPIS
We have been measuring the average environmental key performance indicators (E-KPIs) from Textile and
Leather manufacturing (Tier 2) and Apparel and Footwear manufacturing (Tier 1) since 2017.
In 2023, the Greenhouse Gas emissions KPIs reduced across the product divisions, both Tier 1 and Tier 2,
except for the footwear division, where it almost remained stable (increase by 0.2%) as compared to 2020.
CO2 emissions per piece of garment reduced by 23.2%; per square metre of leather produced, CO2 emissions
have reduced by 40.7% and per ton of textile produced, CO2 emissions reduced by 9.2%. This was mainly
achieved due to various climate actions initiated as described in the report. The participation of core
suppliers in cleaner production and renewable energy programmes, installation of rooftop solar projects,
switching from coal to biomass, and the purchase of RECs are the main contributor for these reductions
achieved in Greenhouse Gas emissions.
In 2023, water consumption per pair/square metre reduced for footwear by 21.5% and 4.9% for textile as
compared to the baseline of 2020 mainly due to the implementation of water efficiency measures including
water recycling plants by a few textile mills towards the end of 2022.
However, the water KPI increased for apparel by 9.4%, and for leather by 11.7%. For apparel, production
reduced by 15% as compared to 2020 (which is 33% reduction from 2022). Most of the apparel factories use
water for domestic purposes and hence water consumption depends on the number of workers. In 2023, the
market environment and increased inventory levels resulted in a need for more cautious procurement from
441
530
549
415
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0
100
200
300
400
500
600
700
800
2020
2021
2022
2023
EP&L Value
Revenue
PUMA Annual Report 2023
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our suppliers, so the number of workers in core apparel factories decreased by 9% and production fell by
15% resulting in higher water consumption per piece of apparel as compared to 2020.
Out of five leather factories, two were new core factories and have not participated in resource efficiency
programmes. One of the tanneries in China has relatively high water consumption as they process raw hide
in-house, whereas other leather tanneries process wet blue leather (tanned leather, but not dried, dyed nor
finished). Also, one tannery in Vietnam started tracking and reporting rainwater usage in 2023.
In 2023, production waste to landfills decreased by 87.4% for apparel and by 64.7% for the footwear division
as compared to the 2020 baseline. This is mainly due to the adoption of better waste disposal practices by
our suppliers and being able to achieve diversion from landfill. We also observed that factories were able to
track and report waste data more accurately.
↗ T.50 FOOTWEAR E-KPI RESULTS (TIER 1)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
suppliers
Energy/pair (kWh)
1.63
1.36
1.41
1.31
1.30
1.25
1.40
24.8%
21
CO2/pair (kg)
0.75
0.7
0.68
0.74
0.96
0.93
1.00
0.2%
Water/pair (L)
11.8
9.6
11.9
15.1
15.2
12.3
14.5
-21.5%
Waste/pair (g)
122
134
141
145
127
109
116
-15.6%
Waste to
landfills/pair (g)
8.36
12.3
19.0
23.7
-
-
-
-64.7%
↗ T.51 APPAREL E-KPI RESULTS (TIER 1)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/piece
(kWh)
0.58
0.52
0.55
0.56
0.57
0.57
0.72
4.5%
19
CO2/piece (kg)
0.17
0.19
0.20
0.22
0.24
0.26
0.31
-23.2%
Water/piece (l)
5.03
3.83
4.23
4.60
4.39
4.20
7.58
9.4%
Waste/piece (g)
60.7
58.2
62.3
54.3
56.3
46.5
44.0
11.8%
Waste to
landfills/piece (g)
0.33
2.66
2.40
2.64
-
-
-
-87.4%
↗ T.52 LEATHER E-KPI RESULTS (TIER 2)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/SqM (kWh)
7.37
7.55
6.46
7.05
8.19
8.65
9.10
4.5%
5
CO2/SqM (kg)
1.61
2.34
1.89
2.72
3.21
3.16
3.39
-40.7%
Water/SqM (L)
76.4
56.9
60.9
68.3
74.7
90.20
91.80
11.7%
Waste/SqM (kg)
0.67
0.60
0.50
0.68
0.78
0.85
1.56
-1.4%
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↗ T.53 TEXTILES E-KPI RESULTS (TIER 2)
Value
2023
2022
2021
2020
2019
2018
2017
Change
2020-2023
Number of
factories
Energy/ton (kWh)
14,320
13,122
13,394
13,049
12,636
13,387
13,679
9.7%
32
CO2/ton (T)
4.06
4.54
4.58
4.47
4.37
4.45
4.45
-9.2%
Water/ton (m3)
98.3
98.5
98.7
103
106
123
119
-4.9%
Waste/ton (kg)
276
289
121
78.9
62.1
70.6
300
250.0%
For tables on E-KPI results, the values for November and December 2023 were estimated by employing the Exponential
Smoothing (ETS) algorithm in Microsoft Excel, utilizing data from January to October of 2023. This approach was chosen after
comparing it to alternative methods, considering its performance against actual historical data, specifically in terms of deviation
from the actual values in percentage terms. The ETS method displayed both higher accuracy and higher precision compared to
other methods, such as averaging the last 10/12 months or multiplying the estimated production by the average KPI (per
production unit) from the 12 months of data spanning from November 2021 to October 2022.
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REPORTING IN ACCORDANCE WITH THE EU
TAXONOMY REGULATION
TAXONOMY OBJECTIVES
The Taxonomy Regulation (EU) 2020/852 (in the following “the Taxonomy”) entered into force on 22 June 2020.
The purpose of this regulation is to provide a definition of what constitutes a sustainable economic activity
and to redirect capital flows into companies that are aligning their business models towards such sustainable
economic activities. To achieve this goal, companies must report on the proportion of “environmentally
sustainable” revenues, investments (capital expenditure) and operating expenses.
The focus of the Taxonomy lies on 6 environmental objectives:
• Climate change mitigation
• Climate change adaptation
• Sustainability and protection of water and marine resources
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems
• Transition to a circular economy
The Taxonomy has identified eligible economic activities that substantially contribute to each of these
environmental objectives. Linked to these eligible activities are technical screening criteria as well as do no
significant harm criteria and minimum safeguards that define whether the activity is considered sustainable
or not (aligned).
Delegated Regulation (EU) 2021/2178 as of July 6, 2021 on the climate objectives (climate change mitigation
(Annex I) and climate change adaptation (Annex II)) (“the Climate Delegated Act”), was published in the
Official Journal on December 9, 2021 and entered into force on January 1, 2022 ((EU) 2021/2139). Further
delegated acts for the remaining objectives were published in 2023, namely EU 2022/1214 (Complementary
Climate DA), EU 2023/2485 (amending EU 2021/2139), EU 2023/2486 (targets three to six), C(2023)3850
(Amended Climate DA) and C(2023)3851 Environmental DA (targets three to six).
DISCLOSURE REQUIREMENTS FOR NON-FINANCIAL UNDERTAKINGS
According to Article 2 of the Climate Delegated Act and Article 8 of the Taxonomy any undertaking subject to
the Non-Financial Reporting Directive (NFRD) must provide information on “environmentally sustainable”
revenues, investments (capital expenditure) and operating expenses (OpEx).
According to Article 10 of the Climate Delegated Act undertakings must disclose the proportion of
Taxonomy-eligible and Taxonomy non-eligible economic activities in their total turnover, capital expenditure
and operational expenditure. The eligibility of an activity implies that an activity is included in the Climate
Delegated Act. Whether an activity is Taxonomy-eligible or not says nothing about the sustainability of that
activity. Being Taxonomy-eligible is merely an indication that a certain activity makes a substantial
contribution to one of the six environmental objectives of the Taxonomy. From January 1, 2023, the
disclosure must also include information on taxonomy alignment, meaning only activities that are included
in the “environmentally sustainable share” of the three performance indicators. An economic activity is
environmentally sustainable if it:
• makes a significant contribution to the achievement of one or more environmental goals (significant
contribution, SC)
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• does not result in significant harm to one of more of the environmental objectives (do no significant
harm, DNSH)
• is carried out in compliance with a defined minimum level of protection (minimum safeguards, MS) and
complies with technical screening criteria (TSC) of Annex I and Annex II.
TAXONOMY-ELIGIBILITY OF PUMA’S ECONOMIC ACTIVITIES IN RESPECT TO THE
ENVIRONMENTAL OBJECTIVES OF THE EU TAXONOMY
The technical screening criteria in Annex I and Annex II of Delegated Regulation (EU) 2021/2139 of June 4,
2021 for the first two environmental objectives, namely climate change mitigation and climate change
adaptation, do not list any business activities that are linked to the production and sale of footwear, apparel
and accessories. This means that PUMA’s business activities so far do not qualify as contributing
substantially to climate change mitigation or climate change adaptation.
Further technical screening criteria were published as Annexes I, III and IV of Delegated Regulation (EU)
2023/2486 (supplementing EU 2020/852) of June 27, 2023, for the remaining environmental objectives,
namely sustainable use and protection of water and marine resources, pollution prevention and control as
well as restoration of biodiversity and ecosystems. Likewise, these do not list any business activities that are
linked to the production and sale of footwear, apparel and accessories.
For the remaining environmental objective published as Annex II, the transition to a circular economy,
activities related to apparel are listed, but are limited to sales generated by services such as repair,
remanufacturing or refurbishment, preparation for reuse, sale of second-hand goods, or product as a
service business models, none of which are not part of PUMA current revenue generating activities.
As mentioned in the Circularity section of this report, PUMA and its partners are piloting fibre to fibre
recycling technology and take-back systems. However, those activities have not generated any significant
Taxonomy-eligible or aligned sales under the definition of Annex II and had a project status in 2023.
Therefore, PUMA’s business activities in this regard are not considered Taxonomy-eligible (so far). Since
PUMA does not have any economic activities related to nuclear power or power generation from gas, PUMA
will not report the related standard forms from the Delegated Act (EU 2022/1214).
ELIGIBLE CAPITAL EXPENDITURE
PUMA understands that the Taxonomy and the Climate Delegated Act as well as the Environmental
Delegated Act including its Annexes nonetheless requires non-financial undertakings with non-Taxonomy
eligible economic activities to report on the part of the capital expenditure related to the purchase of output
from Taxonomy-aligned economic activities and individual measures enabling target activities to become
low-carbon or to lead to greenhouse gas reductions.
In this regard PUMA reviewed so-called cross-cutting activities that are not directly related to PUMA’s
primary business activity and are not revenue-generating for PUMA but still are of relevance to support
PUMA’s sustainability efforts. Taxonomy-eligible capital expenditure could be identified with regard to
“Transport” and “Real Estate Activities”.
The key figures are determined based on Delegated Regulations (EU) 2020/852, 2021/2139 and 2021/2178 as
well as 2023/2385 and 2023/2086 in conjunction with the accounting policies to be applied to the
consolidated financial statements. To avoid double counting, expenditure has been allocated to only one
economic activity.
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In 2023 PUMA made investments in several buildings, including:
• A new solar PV station in Germany (planned completion in 2024)
• New charging stations in Germany
• Office space in Argentina
The technical screening criteria of Annexes I and II define a taxonomy-aligned investment in buildings only
for those buildings that are ranked among the top 15% of their regional building stock in terms of Primary
Energy Demand (PED).
Since there is no precise definition of this 15%, for example in terms of area covered or primary energy
demand per m
2, and as the rental of buildings is not material to PUMA’s business performance in terms of
CO2 emissions, we have decided to report the Taxonomy-aligned investment in buildings for 2023 as zero.
This does not mean that PUMA is not investing in lowering CO2 emissions from its own entities. As described
in the Climate section of this report, our Scope 1 and 2 emissions have been reduced by 85% compared to
our baseline in 2017, mainly through green electricity tariffs or renewable energy attribute certificates.
In 2023 PUMA also invested in charging stations for electric cars, which do fall under the taxonomy
alignment criteria for climate mitigation. The total investment in these charging stations was 241 TEUR
(2022: 79 TEUR).
Furthermore, PUMA started to invest in additional solar PV capacity at its headquarters in Germany. The
investment in 2023 came to 262 TEUR (no investment in 2022).
As part of PUMA’s 10FOR25 sustainability targets, PUMA is transitioning its car fleet to more sustainable
transport vehicles. Therefore, in 2023 PUMA invested in the lease of 92 low or zero emission vehicles (2022:
64 vehicles).
Unlike buildings, the technical screening criteria for CO2 emissions for taxonomy alignments are clearly
defined as below 50 g CO2/km.
We can confirm that 92 cars added to our car fleet are Taxonomy-aligned with the technical screening
criteria based on their CO2 emission footprint, equalling an investment of over 2,000 TEUR (2022: 1,521 TEUR)
Considering the do-no-significant harm criteria of tires for passenger cars, not all those cars can be
considered as fully Taxonomy-aligned, as many of the standard tires used for our new electric cars from
Tesla, Volkswagen, Hyundai, Mercedes and BMW do not fulfil the criteria for noise emissions. As a result
the reported Taxonomy-aligned investment in vehicles for the year 2023 is 408 TEUR (2022: 372 TEUR).
The total capital expenditure (IAS 16, 38 and IFRS 16) of the PUMA Group amounts to 599,874 TEUR for the
year 2023 (2022: 669,382 TEUR). The eligible capital expenditure related to “Transport” amounts to 7,930
TEUR (2022: 5,427 TEUR) and the amount related to“Real Estate Activities /Other” is 336,500 TEUR
(2022:376,996 TEUR). The Taxonomy-aligned capital expenditure from investment in solar PV, low or zero
emission cars and charging stations for electric cars was 910 TEUR (2022: 372 TEUR).
ELIGIBLE OPERATIONAL EXPENDITURE
PUMA understands that the Taxonomy and the Disclosure Delegated Regulation (EU 21/2178) nonetheless
asks non-financial undertakings with non- Taxonomy eligible activities to report on the part of the
operational expenditure related to the purchase of output from Taxonomy-aligned economic activities and
individual measures enabling the target activities to become low-carbon or to lead to greenhouse gas
reductions.
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Due to the nature of our business model, which is the design, development, marketing and sale of footwear,
apparel and accessories, the eligible operational expenditure is not material in the context of the
environmental objectives of the Taxonomy, therefore the numerator of our taxonomy-eligible operational
expenditure is zero.
For the denominator, Article 2, Section 1.1.3.1. of Annex 1 the Climate Delegated Act asks for reporting on the
total operational expenditure derived from the categories “research and development, building renovation
measures, short-term lease, maintenance and repair and any other direct expenditures related to the day-
to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom
activities are outsourced that are necessary to ensure the continued and effective functioning of such
asset.” The total operational expenditure from these categories amounts to 113.4 TEUR (2022: 103.6 TEUR)
for the 2023 financial year.
OUTLOOK
At PUMA, we will continue the transition of our car fleet to low or zero emission vehicles in those countries
where the charging infrastructure can support running an electric car fleet. We also plan to continue
investing in te renewable energy capacity of the buildings we own. In addition, we will explore the activities
listed under “Transition to a circular economy” to assess their technical and financial viability over the next
years.
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Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Turnover
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxnomy-
aligned (A.1) or eligible (A.2)
turnover, year 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
Taxonomy-aligned environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which enabling
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
Taxonomy-eligible environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Turnover of Taxonomy-eligible but not environmentally
sustainable activities
(not Taxonomy-aligned activities) (A.2)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
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Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Turnover
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxnomy-
aligned (A.1) or eligible (A.2)
turnover, year 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. Turnover of Taxonomy eligible activities (A.1+A.2)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
8,601,699,000 100
TOTAL
8,601,699,000 100
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Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
CapEx
Proportion of CapEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
Activity 1: Installation, maintenance and repair of
charging stations for electric vehicles in buildings
(and parking spaces attached to buildings) (7.4)
F42,
F43,
M71
240,000
0.04
Y
Y
N/EL
N/EL
N/EL
N/EL
Y n.a. n.a. n.a. n.a. n.a.
Y
0.01
E
Activity 2: Installation, maintenance and repair of
renewable energy technologies (7.6)
F42,
F43,
M71
262,000
0.05
Y
Y
N/EL
N/EL
N/EL
N/EL
Y n.a. n.a.
Y
Y n.a.
Y
0
E
Activity 3: Transport by motorbikes, passenger
cars and light commercial vehicles (6.5)
N77.11
408,000
0.07
Y
Y
N/EL
N/EL
N/EL
N/EL
Y
Y n.a.
Y
Y n.a.
Y
0.04
E
CapEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
910,000
0.16
0.16
0.16
0
0
0
0
Y
Y n.a.
Y
Y n.a.
Y
0.05
Of which enabling
910,000
0.16
0.16
0.16
0
0
0
0
Y
Y n.a.
Y
Y n.a.
Y
E
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
T
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Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
CapEx
Proportion of CapEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
Activity 1: Acquisition and ownership of buildings
(7.7)
L68
335,998,000 60.01
EL
EL
N/EL
N/EL
N/EL
N/EL
56.31
Activity 2: Transport by motorbikes, passenger
cars and light commercial vehicles (6.5)
N77.11
7,522,000
1.34
EL
EL
N/EL
N/EL
N/EL
N/EL
0.77
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
343,520,000 61.36 61.36 61.36
0
0
0
0
57.09
A. CapEx of Taxonomy eligible activities (A.1+A.2)
344,430,000 61.52 61.52 61.52
0
0
0
0
57.13
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
215,444,000 38.48
42.87
TOTAL
559,874,000
100
PUMA Annual Report 2023
↗ Sustainability
196
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2023
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
OpEx
Proportion of OpEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-
aligned)
Taxonomy-aligned environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
OpEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which enabling
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
Of which transitional
0
0
0
0
0
0
0
0 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
0
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
Taxonomy-eligible environmentally sustainable
activities performed by PUMA
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
0
0
0
0
0
0
0
0
0
A. OpEx of Taxonomy eligible activities (A.1+A.2)
0
0
0
0
0
0
0
0
0
PUMA Annual Report 2023
↗ Sustainability
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Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
OpEx
Proportion of OpEx, 2023
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguard
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx, 2022
Category enabling activity
Category transitional activity
Currency (€)
%
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
113,400,000 100
TOTAL
113,400,000 100
PUMA Annual Report 2023
↗ Sustainability
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INDEX FOR COMBINED NON-FINANCIAL REPORT
AND GRI CONTENT
This report constitutes a separate combined non-financial report in accordance with Sections 289b to 289e
and 315b, 315c in conjunction with Sections 289c to 289e of the German Commercial Code (HGB). This
consolidated combined non-financial report consists of the "Sustainability" and "Culture" subsections in the
"Our People"section as well as “Compliance Management System” and “Corporate Social Responsibility” in
the chapter “Corporate Governance Statement in accordance with Section 289f and Section 315d HGB”. The
reporting period covered is from January 1, 2023 to December 31, 2023. No restatements of information have
been made in this report. We have provided separate reports for PUMA SE and the PUMA Group within the
“Our People” section only. Separate reporting of other sustainability data would not add any meaningful new
information or value and would require significant additional resources, so we have omitted it here.
Information about PUMA’s business model is set out in the Financial section of this Annual Report. We have
not identified any most significant non-financial performance indicators according to Article § 289c, section
3, number 5 of the German Commercial Code (HGB). PUMA engaged KPMG AG Wirtschaftsprüfungs-
gesellschaft to perform a “limited assurance” audit of the combined sustainability report with a focus on
accordance with the German CSR Implementation Act (CSR-RUG).
Since 2003 PUMA’s sustainability reports are based on the guidelines of the Global Reporting Initiative (GRI),
which developed detailed and widely recognised standards on sustainability reporting. PUMA SE has
prepared this report with reference to the GRI Standards GRI 1: Foundation 2021. This option enables us to
report on the impacts related to our economic, environmental, social and governance performance. It
includes topics that are material to PUMA’s business and our key stakeholders, and that constitute our
sustainability targets. These targets have been systematically developed in accordance with the feedback
from PUMA’s stakeholders.
PUMA Annual Report 2023
↗ Sustainability
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GENERAL DISCLOSURES
Location
Pages
GRI 2: General
Disclosures 2021
2-1 Organisational details
Commercial activities and organisational
structure
214
2-2 Entities included in the
organisation’s sustainability reporting
Scope of the Report
48
2-3 Reporting period, frequency and
contact point
Index for combined non-financial report
and GRI content, Imprint
198
2-4 Restatements of information
Index for combined non-financial report
and GRI content
198
2-5 External assurance
Limited assurance report of the
independent practitioner regarding the
separate non-financial group report
205
2-6 Activities, value chain and other
business relationships
Commercial activities and organisational
structure; Sourcing
214, 220
2-7 Employees
Our People; Employees
16, 222
2-9 Governance structure and
composition
Description of the working practices of
the management board and the
supervisory board
254
2-10 Nomination and selection of the
highest governance body
Description of the working practices of
the management board and the
supervisory board
254
2-11 Chair of the highest governance
body
Description of the working practices of
the management board and the
supervisory board
254
2-12 Role of the highest governance
body in overseeing the management of
impacts
Sustainability organisation and
governance structure; Description of the
working practices of the management
board and the supervisory board
36, 254
2-13 Delegation of responsibility for
managing impacts
Sustainability organisation and
governance structure
36
2-14 Role of the highest governance
body in sustainability reporting
Sustainability committee
8
2-15 Conflicts of interest
Diversity concept for the supervisory
board
254
2-16 Communication of critical concerns Risk and opportunity report
255
2-17 Collective knowledge of the highest
governance body
Compensation System
https://about.puma.com/en/investor-
relations/corporate-governance
2-19 Remuneration policies
Description of the working practices of
the management board and the
supervisory board
254
2-20 Process to determine remuneration Description of the working practices of
the management board and the
supervisory board.
Compensation System
https://about.puma.com/en/investor-
relations/corporate-governance
254
PUMA Annual Report 2023
↗ Sustainability
200
Location
Pages
GRI 2: General
Disclosures 2021
2-21 Annual total compensation ratio
Description of the working practices
of the management board and the
supervisory board.
Compensation Report
https://about.puma.com/en/investor-
relations/corporate-governance
254
2-22 Statement on sustainable
development strategy
CEO Letter; Foreword
5, 31
2-23 Policy commitments
https://about.puma.com/en/sustaina
bility/codes-policies-and-handbooks
2-24 Embedding policy commitments
PUMA's FOREVER. BETTER.
Sustainability Strategy; Human Rights
35, 53
2-25 Processes to remediate negative
impacts
Human Rights
67-78
2-26 Mechanisms for seeking advice
and raising concerns
Compliance management system
254
2-28 Membership associations
Stakeholder outreach
38-41
2-29 Approach to stakeholder
engagement
Stakeholder outreach
38-41
2-30 Collective bargaining
agreements
Human Rights at own entities
53
MATERIAL TOPICS
Location
Pages
3-1 Process to determine material
topics
Most material aspects
42-44
GRI 3: Material
Topics 2021
3-2 List of material topics
Most material aspects
42-44
ANTI-CORRUPTION
Location
Pages
3-3 Management of material topics
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
263
GRI 3: Material
Topics 2021
205-2 Communication and training
about anti-corruption policies and
procedures
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
263
PUMA Annual Report 2023
↗ Sustainability
201
TAX
Location
Pages
GRI 207: Tax 2019
207-1 Approach to tax
“WE PAY OUR FAIR SHARE” is the
core principle the PUMA Group is
taking into consideration for its global
tax strategy. In this regard, PUMA
fully commits to act in accordance
with all international tax regulations
and to fulfill any tax obligations
arising from its business activities.
All information regarding PUMA’s tax
approach can be found in the tax
strategy
(https://about.puma.com/en/investor-
relations/corporate-governance, see
Tax Strategy)
As it is a general principle for PUMA
to follow tax rules and to pay
applicable taxes, taxes as such are
not a material issue within the
sustainability approach.
Consequently, PUMA does not report
in detail on the GRI Standard in this
regard.
MATERIALS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Recycled material usage; Material
origin
157, 173
GRI 301: Materials
2016
301-1 Materials used by weight or
volume
Recycled material usage; Material
consumption data
157, 173
301-2 Recycled input materials used
Recycled material usage
157, 173
ENERGY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Climate
104
GRI 302: Energy
2016
302-3 Energy intensity
Climate
104
PUMA Annual Report 2023
↗ Sustainability
202
WATER AND EFFLUENTS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Water and air
142
303-2 Management of water
discharge-related impacts
Water and air
142
303-5 Water consumption
Water and air
142
BIODIVERSITY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Biodiversity
177
GRI 304:
Biodiversity 2016
304-1 Operational sites owned,
leased, managed in, or adjacent to,
protected areas and areas of high
biodiversity value outside protected
areas
Biodiversity
177
EMISSIONS
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Climate
104
305-1 Direct (Scope 1) GHG emissions Climate
104
305-2 Energy indirect (Scope 2) GHG
emissions
Climate
104
305-3 Other indirect (Scope 3) GHG
emissions
Climate
104
305-4 GHG emissions intensity
Climate
104
GRI 305: Emissions
2016
305-5 Reduction of GHG emissions
Climate
104
WASTE
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Circularity
156
306-1 Waste generation and
significant waste-related impacts
Circularity
156
GRI 306: Waste 2020 306-2 Management of significant
waste-related impacts
Circularity
156
PUMA Annual Report 2023
↗ Sustainability
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OCCUPATIONAL HEALTH AND SAFETY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Our people occupational health and
safety
22
403-2 Hazard identification, risk
assessment, and incident
investigation
Our people occupational health and
safety
22
403-9 Work-related injuries
Our people occupational health and
safety
22
DIVERSITY AND EQUAL OPPORTUNITY
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
254
GRI 405: Diversity
and Equal
Opportunity 2016
405-1 Diversity of governance bodies
and employees
Relevant disclosures of corporate
governance practices that are applied
beyond the regulatory requirements
254
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 407: Freedom of
Association and
Collective
Bargaining 2016
407-1 Operations and suppliers in
which the right to freedom of
association and collective bargaining
may be at risk
Human Rights in the supply chain
55
FORCED OR COMPULSORY LABOR
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 409: Forced or
Compulsory Labor
2016
409-1 Operations and suppliers at
significant risk for incidents of forced
or compulsory labor
Human Rights in the supply chain
55
PUMA Annual Report 2023
↗ Sustainability
204
SUPPLIER SOCIAL ASSESSMENT
Location
Pages
GRI 3: Material
Topics 2021
3-3 Management of material topics
Human Rights in the supply chain
55
GRI 414: Supplier
Social Assessment
2016
414-1 New suppliers that were
screened using social criteria
Human Rights in the supply chain
55
414-2 Negative social impacts in the
supply chain and actions taken
Human Rights in the supply chain
55
PUMA Annual Report 2023
↗ Sustainability
205
KPMG ASSURANCE STATEMENT
To the PUMA SE, Herzogenaurach
We have performed a limited assurance engagement on the combined separate non-financial group report
of PUMA SE, Herzogenaurach (hereinafter: “company”), which was combined with the non-financial report
of the parent company for the period from January 1 to December 31, 2023 (hereinafter the “consolidated
non-financial report”). This consolidated non-financial report consists of the chapter “Sustainability”, the
section “Culture” in the chapter “Our People” and the sections “Compliance Management System” and
“Corporate Social Responsibility” in the chapter “Corporate Governance Statement in accordance with
Section 289f and Section 315d HGB” of the Annual Report 2023 of PUMA SE, Herzogenaurach.
Not subject of our assurance engagement was the material audit of the external sources of documentation,
interviews, case studies, expert opinions, the Environmental Profit & Loss figures as well as checking the
content of links to internet pages mentioned in the non-financial report (see Annex 1 to the assurance
report).
Responsibilities of Management
Management of PUMA SE, Herzogenaurach, is responsible for the preparation of the consolidated non-
financial report in accordance with Sections 315c in conjunction with 289c to 289e HGB and Article 8 of
REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of June 18, 2020 on
establishing a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088
(hereinafter the “EU Taxonomy Regulation”) and the Delegated Acts adopted thereunder, as well as for
making their own interpretation of the wording and terms contained in the EU Taxonomy Regulation and the
delegated acts adopted thereunder as set out in section “Reporting in accordance with the EU taxonomy
regulation” of the consolidated non-financial report.
This responsibility of the legal representatives of the company includes the selection and application of
appropriate non-financial reporting methods and making assumptions and estimates about individual non-
financial disclosures of the group that are reasonable in the circumstances. Furthermore, management is
responsible for such internal control as they consider necessary to enable the preparation of a consolidated
non-financial report that is free from material misstatement, whether due to fraud (manipulation of the
non-financial group report) or error.
The EU Taxonomy Regulation and the Delegated Acts issued thereunder contain wording and terms that are
still subject to considerable interpretation uncertainties and for which clarifications have not yet been
published in every case. Therefore, management has disclosed their interpretation of the EU Taxonomy
Regulation and the Delegated Acts adopted thereunder in section “Reporting in accordance with the EU
taxonomy regulation” of the consolidated non-financial report. They are responsible for the defensibility of
this interpretation. Due to the immanent risk that indeterminate legal terms may be interpreted differently,
the legal conformity of the interpretation is subject to uncertainties.
Independence and Quality Assurance of the Assurance Practitioner
We have complied with the independence and quality assurance requirements set out in the national legal
provisions and professional pronouncements, in particular the Professional Code for German Public
Auditors and Chartered Accountants (in Germany) and the IDW Standard on Quality Management 1:
Requirements for Quality Management in Audit Firms (IDW QMS 1 (09.2022)).
PUMA Annual Report 2023
↗ Sustainability
206
Responsibility of the Assurance Practitioner
Our responsibility is to express a conclusion with limited assurance on the consolidated non-financial report
based on our assurance engagement.
We conducted our assurance engagement in accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised): “Assurance Engagements other than Audits or Reviews of Historical
Financial Information” issued by the IAASB. This standard requires that we plan and perform the assurance
engagement to obtain limited assurance about whether any matters have come to our attention that cause
us to believe that the company’s consolidated non-financial report, other than the external sources of
documentation or expert opinions mentioned in the non-financial report, is not prepared, in all material
respects, in accordance with Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy
Regulation and the Delegated Acts issued thereunder as well as the interpretation by management
disclosed in section “Reporting in accordance with the EU taxonomy regulation” of the consolidated non-
financial report.
In a limited assurance engagement, the procedures performed are less extensive than in a reasonable
assurance engagement, and accordingly, a substantially lower level of assurance is obtained. The selection
of the assurance procedures is subject to the professional judgment of the assurance practitioner.
In the course of our assurance engagement we have, among other things, performed the following
assurance procedures and other activities:
• Gain an understanding of the structure of the Group’s sustainability organisation and stakeholder
engagement.
• Inquiries of management and relevant employees involved in the preparation of the consolidated non-
financial report about the preparation process, about the internal control system related to this process,
and about disclosures in the non-financial report.
• A risk analysis, including media research, to identify relevant information on PUMA SE’s sustainability
performance in the reporting period.
• Identification of likely risks of material misstatement in the consolidated non-financial report.
• Analytical procedures on selected disclosures in the consolidated non-financial report.
• Inquiries of management and relevant employees that are responsible for determining disclosures about
concepts, due diligence processes, results and risks, performing internal control procedures and
consolidating disclosures in the preparation of the consolidated non-financial report.
• Inspection of selected internal and external documents.
• Analytical procedures for the evaluation of data and of the trends of quantitative disclosures as reported
at Group level by all sites.
• Evaluation of local data collection, validation and reporting processes as well as the reliability of
reported data based on a sample taken at nine suppliers (remote site visits) and two offices (on-site and
remote site visits).
• Assessment of the overall presentation of the disclosures.
• Inquiries of Group level personnel in order to understand the processes for identifying relevant economic
activities according to the EU Taxonomy Regulation.
• Evaluation of the process for the identification of taxonomy-eligible and taxonomy-aligned economic
activities and the corresponding disclosures in the consolidated non-financial report.
In determining the disclosures in accordance with Article 8 of the EU Taxonomy Regulation, management is
required to interpret undefined legal terms. Due to the immanent risk that undefined legal terms may be
interpreted differently, the legal conformity of their interpretation and, accordingly, our assurance
engagement thereon are subject to uncertainties.
PUMA Annual Report 2023
↗ Sustainability
207
@@linksunterzeichner--@@
@@rechtsunterzeichner--@@
Assurance Opinion
Based on the assurance procedures performed and the evidence obtained, nothing has come to our
attention that causes us to believe that the consolidated non-financial report of PUMA SE, Herzogenaurach
for the period from January 1 to December 31, 2023 has not been prepared, in all material respects, in
accordance with Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy Regulation and
the Delegated Acts issued thereunder as well as the interpretation by management as disclosed in section
“Reporting in accordance with the EU taxonomy regulation” of the consolidated non-financial report.
We do not express an assurance opinion on the external sources of documentation, interviews, case studies,
expert opinions, Environmental Profit & Loss as well as content of links to internet pages mentioned in the
consolidated non-financial report (see Annex 1 to the assurance report).
Restriction of Use
This assurance report is solely addressed to the PUMA SE.
Our assignment for PUMA SE and professional liability is governed by the General Engagement Terms for
Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (German Public Auditors and Public Audit Firms)
(Allgemeine Auftragsbedingungen für Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) in the
version dated January 1, 2017 (Appendix 2). By reading and using the information contained in this assurance
report, each recipient confirms having taken note of provisions of the General Engagement Terms (including
the limitation of our liability for negligence to EUR 4 million as stipulated in No. 9) and accepts the validity of
the attached General Engagement Terms with respect to us.
Nuremberg, February 1st, 2024
KPMG AG
Wirtschaftsprüfungsgesellschaft
PUMA Annual Report 2023
↗ Combined Management Report
208
COMBINED MANAGEMENT REPORT OF
PUMA SE FOR THE FINANCIAL YEAR 2023
Overview 2023
210
PUMA Group essential information
214
Commercial activities and organisational structure 214
Targets and strategy
215
Product development and design
217
Sourcing
220
Employees
222
Management system
225
Information regarding the non-financial report
227
Economic report
228
General economic conditions
228
Sales development
229
Results of operations
233
Development of the segments
237
Dividends
238
Net assets and financial position
239
Cash flow
242
Statement regarding the business development and
the overall situation of the Group
245
Comments on the Financial Statements of
PUMA SE in accordance with the German
Commercial Code (HGB)
247
Results of operations
247
Net assets
249
Financial position
250
Outlook
250
Combined Management Report: This report
combines the Management Report of the PUMA
Group and the Management Report of PUMA SE
Information concerning takeovers
251
Corporate governance statement in accordance
with section 289f and 315d HGB
254
Risk and Opportunity Report
255
Risk Management System
255
Risks
258
Opportunities
267
Overall Assessment of the Risk and Opportunity
Situation
268
Main Features of the Internal Control and Risk
Management System as it relates to the Group's
Accounting Process
268
Internal Control System
269
Outlook report
272
Global economy
272
Sporting goods industry
272
Outlook 2024
272
Investments
273
Foundation for Long-Term Growth
273
PUMA Annual Report 2023
↗ Combined Management Report
209
Notes relating to forward-looking statements
This document contains statements about the future business development and strategic direction of the
Company. The forward-looking statements are based on management's current expectations 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 combined 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 developments. We therefore assume no liability for the accuracy of
these forecasts.
┌
These sections contain content or cross-references not required by law, which were not audited by the
auditor, but were merely read critically. In the case of cross-references, the information to which the cross-
references refer was also not audited.
└
PUMA Annual Report 2023
↗ Combined Management Report
210
OVERVIEW 2023
┌
In 2023, we celebrated PUMA’s 75th anniversary with events around the world which highlighted our proud
history with our employees and our brand ambassadors. PUMA’s founder Rudolf Dassler had the vision of
making products that would provide athletes with the agility and speed of a puma and through this vision,
PUMA has left a firm mark on sports and culture since 1948.
Even though we faced many global uncertainties during the year, PUMA was able to sustain its strong brand
momentum as we launched significant new products and initiatives.
In Teamsport, the Women's World Cup in Australia and New Zealand was an important moment to
emphasize our commitment to women’s football and to demonstrate our leading product offer for women:
PUMA is the only sports brand to offer all boots in women’s specific fits. On pitch, PUMA supplied more than
100 players and the fact that more than 90% of them chose our women’s fit shows that there is a real
demand for these products.
We introduced new versions of the successful boots ULTRA and FUTURE and redesigned the KING without
kangaroo leather. Instead, PUMA uses K-BETTER, a completely new, vegan material for the upper which
contains at least 20% recycled material. K-BETTER has proven to outperform the previous versions of the
KING in testing for touch, comfort, and durability. The performance characteristics of K-BETTER were so
convincing that PUMA committed to stop producing football boots with kangaroo leather altogether in 2023
as the first company in the industry.
In club football, PUMA team Manchester City won the treble for the first time in its history: the UEFA
Champions League, the Premier League and the FA CUP, showcasing that it’s currently the best football
team in the world. Manchester City was also the first team in PUMA’s history to win the Treble.
Many PUMA teams were among the best in their respective countries: In Germany, Borussia Dortmund was
a close runner up in the Bundesliga, in France, RC Lens and Olympique de Marseille finished second and
third in Ligue 1, in Sweden, Malmö FF won the Allsvenskan and in the Netherlands, PSV Eindhoven once
again won the KNVB Cup. Elsewhere, the young talents of PUMA team Uruguay became world champions at
the FIFA U-20 World Cup in Argentina.
To extend our global reach in football, we signed agreements with South American football federation
CONMEBOL and the African football federation CAF. As part of these agreements, PUMA will become very
visible during the tournaments organised by these federations, for example by supplying the official match
ball, equipping referees and officials and also conducting exciting marketing campaigns which will engage
with football fans on these continents.
On the players’ side, PUMA welcomed some of the most inspirational talents of their generation as brand
ambassadors in 2023 such as Kai Havertz, the Arsenal and Germany midfielder, Jack Grealish, the
Manchester City and England playmaker, and Xavi Simons, the RB Leipzig and Netherlands midfielder.
In track and field, the World Athletics Championships in Budapest were an immense success for us, as
PUMA-sponsored athletes won 22 medals, including six gold medals, twice the medal count achieved in
Eugene in 2022. PUMA athletes also won 17 medals at the European Indoor Championships in Istanbul.
Armand “Mondo” Duplantis once again set a new pole vault world record of 6 meters 23. For his outstanding
performances, Mondo was named Male Athlete of the Year 2023 – the third time he received this award in
four years’ time. At the World Para Athletics Championships in Paris, PUMA athletes took 13 medals, with
Cuban sprinter Omara Durand adding to her status as one of the most successful para-athletes of her
generation with three gold medals.
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We built on our impressive portfolio of brand ambassadors by welcoming Marcell Jacobs, the current
Olympic 100 m Champion, and Julien Alfred, the current NCAA 100m Champion to the PUMA Family.
In our Running category, we continued to focus on establishing our NITRO™ foam technology in the market.
With our supercritical NITRO™ foam, PUMA has one of the best foams in the industry and we are fully
determined to become a sought-after brand in road running. We continue to see a strong growth trajectory
in our third year after the launch of our first NITRO™ running shoes and further underlined our credibility
with signings of new running ambassadors: European 5,000 m Champion Konstanze Klosterhalfen,
marathon legend Edna Kiplagat and European marathon Champion Aleksandra Lisowska.
In basketball, we introduced the third signature shoe for PUMA Hoops ambassador LaMelo Ball, the MB.03,
following the tremendous success of his first signature products. The MB.03 launched in several colours,
including a version inspired by the popular cartoon series Dexter’s Laboratory.
PUMA teamed up with NBA rookie and the 3rd NBA Draft Pick Scoot Henderson to present the new All-Pro
NITRO™, PUMA’s newest basketball silhouette, which features our NITRO™ foam technology. Later in the year,
Scoot became the youngest player ever to receive his own signature shoe, the Scoot Zeros. Breanna Stewart,
our WNBA ambassador, introduced several versions of her signature shoe Stewie 2 throughout the year.
Our athletes also achieved tremendous success on court, as Breanna Stewart became the most valuable
player for the WNBA for the second time and Dennis Schröder became the MVP of the tournament at the
Basketball World Championships in Southeast Asia, when he led Germany to its first title.
After the strong success of PUMA in basketball over the past years, we decided to broaden our reach and
further strengthen our connection to the younger consumers. Partnering with NXTPRO gives PUMA access
to one of the top 3 Amateur Basketball circuits with 15,000 players.
In golf, we introduced the AEROJET family of clubs, which feature a raised skirt, symmetrical shaping and
streamlined edges. Designed to achieve new levels of speed not believed to be possible until now, the
AEROJET was named best driver for distance by Golf Monthly.
To underscore our credibility in this sport, PUMA ambassador Rickie Fowler captured his sixth PGA Tour
victory at the Rocket Mortgage Classic in Detroit, while Patricia Isabel Schmidt secured her maiden
European Tour win at the Belgian Ladies Open.
PUMA further added to its dominant position in motorsport by signing a landmark agreement with Formula
1 to become the sport’s official licensing partner and exclusive trackside retailer. While PUMA will equip F1
officials and our subsidiary stichd will operate the fan retail stores during race weekends, we will also
produce exciting collections for the growing number of F1 fans around the world.
The PUMA x F1 collections will be designed by A$AP Rocky, whom PUMA presented as the creative director
for F1 in a game changing announcement. As one of the biggest cultural influencers of his day, A$AP has the
vision and the talent to really provide a new perspective on this category. The first successful capsule
collection was launched during the Las Vegas Grand Prix with many more products to come in 2024 and
beyond. The extension of PUMA’s long-term partnership with Ferrari and a new contract with Williams
Racing further increased our dominance in motorsport.
In Sportstyle, global superstar Rihanna returned to PUMA in 2023 and the first joint product of the FENTY x
PUMA collection, the Avanti, created a huge buzz and sold out on PUMA.com immediately. At the end of the
year, she followed up on the Avanti with the launch of the Creeper Phatty, a remake of the plateau style she
pioneered during her first collaboration with PUMA, which was named “Shoe of the Year” by Footwear News
in 2016.
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PUMA’s Sportstyle offering also benefited from our strong take on the terrace trend. We reintroduced our
classics Palermo and Super Team to the market and saw strong demand for the first drops. To mark 50
years of hip-hop, PUMA took a journey through time with the iconic Suede, and we created several versions
which showed how hip-hop evolved and left its unmistakable impact on culture. On time with the ongoing
skate trend in the market, we also launched the all-new Suede XL at the end of the year.
With styles such as the CA Pro, Slipstream and Doublecourt, we continued to have the right proposition for
the ongoing demand for white court shoes, with our RS-X and the Velophasis we further built on our
Progressive Running offer and with our Mayze we continued to excite our female consumers.
Our Sportstyle offer was complemented by several successful Select collaborations with partners such as
Noah, Palomo Spain and Rhuigi.
└
In financial year 2023, PUMA found itself in an increasingly difficult geopolitical and macroeconomic
environment. The conflict in the Middle East, the war in Ukraine, persistent inflation and risks of recession
had a negative impact on the consumer sentiment and led to volatile retail demand. For this reason, the
Management saw 2023 as a transitional year in which PUMA focused entirely on the factors that could be
directly influenced. The main focus was on operational flexibility, the normalisation of inventories and
ongoing cost discipline. The purpose of this was to overcome the short-term challenges without
compromising the medium and long-term success of PUMA. In this respect, sales growth and increasing
market shares took priority over short-term profitability optimisation.
Despite the difficult market environment, PUMA was able to further increase its sales and set a new sales
record in financial year 2023, based on continued strong brand momentum, exciting product launches,
strong partnerships in all areas of the value chain and a focus on flexibility in operating activities. Currency-
adjusted sales increased by 6.6%. Due to strong negative currency effects this corresponds to an increase in
sales in the reporting currency, the euro, of 1.6% from € 8,465 million in the previous year to € 8,602 million
in 2023. The positive sales development was achieved despite the significant devaluation of the Argentine
peso and was therefore largely in line with the outlook of currency-adjusted sales growth in the high single-
digit percentage range.
Unfavourable currency effects, industry-wide sales promotion measures and fluctuating sourcing prices
and freight costs had a negative impact on the gross profit margin in 2023. These negative effects were more
than offset by price adjustments and a favourable regional and distribution channel mix. Overall, this led to
an improvement in the gross profit margin from 46.1% in the previous year to 46.3% in 2023. The net
expenditure of other operating income and expenses increased by a total of 3.3% in financial year 2023 to
€ 3,403 million (from € 3,296 million in the previous year). The increase was mainly due to higher sales-
related distribution and other variable costs, the strong growth in our direct-to-consumer sales and higher
marketing investments. This development was partially offset by operational leverage in other cost areas
and favourable exchange rate effects. Due to the continued cost control, the cost ratio increased only from
38.9% in the previous year to 39.6% in 2023.
Despite the sales growth and the improvement in the gross profit margin, the slight increase in the cost
ratio during the past financial year led to a slight decline in operating result (EBIT) of 3.0% to € 621.6 million
(from € 640.6 million in the previous year). Despite the significant devaluation of the Argentine peso,
operating result was therefore well within the € 590 million to € 670 million range. However, the EBIT
margin fell from 7.6% in the previous year to 7.2% in 2023. The devaluation of the Argentine peso had a
particularly negative effect on the financial result. Because of this, consolidated net income amounted to
€ 304.9 million compared to € 353.5 million in the previous year. This corresponds to a decrease of 13.7%.
Earnings per share therefore decreased from € 2.36 in the previous year to € 2.03.
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The positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose
the distribution of a dividend of € 0.82 per share for the financial year 2023 at the Annual General Meeting on
22 May 2024. This corresponds to a payout ratio of 40.3% of consolidated net income according to IFRS. The
higher payout ratio results from the strong improvement in free cash flow and reflects the underlying
positive operating business development. In general, PUMA's dividend policy continues to provide for a
payout of 25% to 35% of consolidated net income. In the previous year, a dividend of € 0.82 per share was
paid out (payout ratio for previous year: 34.7%).
The PUMA share had a negative performance in financial year 2023. Based on the share price at the end of
the previous year, the PUMA share started 2023 at a price of € 56.70. In the following twelve months, the
price of the PUMA share ranged between € 67.22 (February 2023) and € 44.36 (May 2023). At the end of 2023,
the price of the PUMA share was € 50.52, which represents a decline of 10.8% compared to the previous
year. The market capitalisation of the PUMA Group amounted to around € 7.6 billion at year-end 2023
(previous year: € 8.5 billion).
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PUMA GROUP ESSENTIAL INFORMATION
COMMERCIAL ACTIVITIES AND ORGANISATIONAL STRUCTURE
PUMA SE operates as a European stock corporation with Group headquarters in Herzogenaurach, Germany.
In the internal reporting, our business activities are mapped according to three major regions (EMEA, the
Americas and Asia/Pacific) and three product divisions (footwear, apparel and accessories). In addition, we
consider seven segments for internal management purposes, as shown in the segment reporting.
Our revenues are derived in particular from the sale of products from the PUMA and Cobra Golf brands via
the wholesale and retail trade, as well as from sales directly to consumers in our own retail stores and
online stores. We market and distribute our products worldwide primarily via our own subsidiaries. There
are distribution agreements in place with independent distributors in a small number of countries.
As of 31 December 2023, 99 subsidiaries were controlled directly or indirectly by PUMA SE. Our subsidiaries
carry out various tasks at the local level, such as distribution, marketing, product development, sourcing
and administration. A full list of all subsidiaries can be found in chapter 2 of the Notes to the Consolidated
Financial Statements (in the subsection "Group of consolidated companies").
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TARGETS AND STRATEGY
PUMA started 2023 by sharpening its strategic priorities.
↗ G.01 STRATEGIC PRIORITIES
Our strategic framework consists of a triangle: Elevate the Brand, Increase Product Excellence, and
Improve Distribution Quality. Within this context, we placed a special emphasis on implementing this
strategic framework in the US and China – two key countries where our current market shares are
significantly too low. The strategic framework triangle is based on our three foundational pillars of focusing
on people first, evolving sustainability and digitalizing PUMA’s infrastructure.
┌
By elevating the brand, we want to anchor PUMA more deeply in the hearts and minds of customers, to
become more consumer centric and to focus our investments on fewer Tier 1 ambassadors with a bigger
reach. Finally, we will also improve our focus and engage with consumers with fewer, bigger and better
brand and product campaigns going forward.
With our rich history of having served athletes since 1948, our PUMA brand has some of the best logos in the
whole industry and a huge archive of the most iconic sport moments, athletes, and products in history. This
unmatchable DNA gives our product designers and marketeers a unique opportunity to tell our brand and
product stories with the authenticity and credibility of a true sports brand.
We continuously focus on enhancing our product excellence and we put innovation and quality at the heart
of our designs. All PUMA products will have 100% sports DNA. While we celebrate the sports roots of our
shoes on the Sportstyle side, we push for new innovations on the performance side to make our athletes
even faster. We keep on leveraging our NITRO™ foam technology in our key running styles Deviate, Velocity
and ForeverRun and are continuously evolving to improve the cushioning, responsiveness and weight of our
shoes. We are also continuously evolving our three strong football footwear franchises FUTURE, ULTRA and
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KING, which is reflected in our ongoing market share gains in this highly competitive market. Finally, we
also introduced the All-Pro, which we believe is one of the best basketball shoes in the industry and we will
continue to evolve our All-Pro proposition going forward.
PUMA is continuously improving the quality of its distribution in wholesale. Our retail partners are our key
priority as we believe that the consumers enjoy a multi-branded retail environment to make the best
product choices. To cater to the requirements of our retail partners and to build long-term partnerships
with them, we provide our retail partners with the best and fastest service in the industry. PUMA continues
to pursue its direct-to-consumer business as a complementary offering in its distribution strategy to realize
the roles which our retail partners cannot fulfil, namely brand storytelling.
└
In the United States, we see significant opportunities to enhance our market share in the world’s biggest
sports market. To achieve this, we need to position ourselves as a credible performance brand. Our
initiatives in basketball, motorsport and even football - as our new partner CONMEBOL will host the next
Copa America in the US – will all contribute to this target. With our roster of athletes including LaMelo Ball,
Scoot Henderson, and Breanna Stewart in basketball and Christian Pulisic in football, we have the right
brand ambassadors in place to connect with our target audiences in a credible manner. Furthermore, we’re
also focussing on creating more US-first products, improving our distribution quality in the US and
strengthening our local US organisation.
Next to the United States, we see significant opportunities to enhance our market shares in China, the
world’s most dynamic sports market. PUMA also has a clear strategy in place when it comes to our rebound
in the Chinese market. We want to position PUMA as a global sports brand in China, leverage our local-for-
local resources both in terms of design and sourcing to deliver the right product to the Chinese consumer,
improve our distribution quality in this digital-first market and strengthen our local China organisation.
Putting our people first is an important part of our corporate strategy. PUMA’s working culture is
characterised by diversity, inclusion, and equality, as our employees have many different nationalities and
backgrounds. We believe this diversity to be one of our key strengths and we were thrilled to be named a
global Top Employer in 2023. Our commitment to equality was rewarded when an independent agency
certified that we had closed the adjusted pay gap between women and men among our employees in
Germany. We will continue to work hard to provide our employees with an inspiring place to work which
reflects our values.
The aim of our FOREVER.BETTER. sustainability strategy is to fully integrate sustainability into all our core
business functions. By 2025, we want to make nine out of ten products with materials such as certified
cotton and viscose or recycled polyester. We also want to become more circular.
With our RE:SUEDE project, we showed in 2023 how we can successfully turn an experimental version of our
classic Suede sneaker into compost under certain tailor-made industrial conditions. Going forward, we will
continue to innovate with our partners to determine the infrastructure and technologies needed to make the
process viable for a commercial version of the RE:SUEDE, including a takeback scheme.
To reach younger audiences with our sustainability strategy, we started our “Voices of a RE:GENERATION”
initiative. The Voices, who are GEN-Z activists and environmentalists, regularly join PUMA to give our senior
management feedback on how we can further strengthen our sustainability strategy. The voices also visited
the factories of our partners in Asia and Turkey and helped us communicate with younger audiences
throughout the year. We believe that new ways of communication like this and transparency are essential for
the journey towards a more sustainable world.
To operate efficiently and to keep up with our growth momentum, we constantly improve our infrastructure
and processes. This includes investments in our IT systems, distribution centres and offices around the world.
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PRODUCT DEVELOPMENT AND DESIGN
Enhancing the excellence of our products is one of PUMA’s strategic priorities. In order to accomplish this,
we will focus on five key measures: authentic sports DNA across all our products, design and innovation
excellence, focus on clear must-win priorities, creating product franchises as a brand, and a global-local
(“glocal”) product creation approach.
┌
As a sports company, PUMA has 75 years of history and sports authenticity, created by writing history
alongside the world’s fastest athletes. All PUMA products will have 100% sports DNA. While we celebrate
the sport roots of our products and rich archive on the non-performance side, we push for new innovations
on the performance side.
└
In addition to the clear sports DNA of our products, we also place a special emphasis on design and
innovation across all our categories. We have a strong pipeline of innovations across all our performance
categories both on the footwear and apparel side. We have the clear ambition to make the fastest products
for the fastest athletes and our innovative technologies such as NITRO™ will ensure that we live up to this
ambition.
┌
Also on the design side, PUMA has a rich history of firsts and bests. We built on our legacy in 2023 by
relaunching the Avanti with global icon Rihanna, a style which is based on the sneaker through which PUMA
revolutionised the category in the 1990s. The Avanti is a perfect example of how we leverage our rich archive
of iconic silhouettes while ensuring cutting-edge and on-trend design in the here and now.
To sharpen our focus, we decided to implement fewer, bigger and better product stories and we defined four
clear must-win priorities that we will focus on: classics, sports culture, our NITRO™ technology and
creating the best product offer for women.
Classics are one of PUMA’s biggest asset, given our rich history and our vast archive, which continues to
inspire our designers today. PUMA was already an established brand when football transformed to terrace,
skate became streetwear and when fashion embraced low profile styles. This means that PUMA has
genuine credibility to respond to the return of such trends.
Through its archive and history, PUMA will continue to incubate new trends, such as low profile, and
capitalise on existing trends such as the prevalent terrace and skate trends.
For PUMA, sports culture is about more than the game, as the influence of sport can be felt long after the
final whistle or the chequered flag. In Football, the terrace trend first started in the football stadiums of the
1980s and made its way into fashion and streetwear.
Basketball also has a direct impact on culture and streetwear, for example when the players make strong
fashion statements on their way into the venue of the game, or when celebrities show of their style as they
sit courtside.
Few players embody this spirit and cultural influence like our ambassador LaMelo Ball, with whom we will
continue to work on his range of signature shoes which blend performance and style.
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In Motorsport, some of the biggest names in sports, film and music regularly attend Formula 1 races and
can be seen in the pits on race weekends. By hosting races across the planet and popular documentaries
featuring the sport, F1’s global viewership has skyrocketed in recent years and the audience has become
more female and diverse, further increasing its influence on culture. With our strong legacy and authenticity
in motorsport, we’re well positioned to capitalise on this growing cultural influence and create relevant F1-
inspired streetwear. We already showcased this approach when we released a bespoke capsule collection
with A$AP Rocky, our creative director for the PUMA X F1 partnership, during the Las Vegas Grand Prix.
NITRO™, one of the best foam technologies in the industry, is at the core of our successful return to
performance running and we will continue to invest significant resources into these performance products.
PUMA has a long-term vision for the running category, with a pipeline of innovations going beyond the next
four or five years.
NITRO™ foam maximizes responsiveness and cushioning while being extremely lightweight, and while it
was created as part of our performance running line up, it is also used in other categories, for example in
basketball.
PUMA has set up state of the art testing facilities in Germany and the US for our elite athletes, called
NITRO™ LAB, which can gather full-body insights to develop bespoke and customised products, so they can
perform at their best.
NITRO™ is used in our award-winning running styles Deviate, Velocity and the latest addition ForeverRun.
With these three styles, we have a clear product proposition for our consumers.
Women have been a priority for PUMA for many years, and we are doubling down on our commitment to
make the best products for her, whether it is female-specific fits for our footwear or other products
specifically catering to the needs of women.
We take her serious throughout our performance categories, for example in football, where following two
years of research, PUMA is the only sports brand to offer all football boots in fits that are specifically
developed for female feet, with a lower volume in the midfoot and a smaller instep compared to unisex
sizes. More than 90% of PUMA’s professional female players choose their boots in women’s specific fits,
which shows the real demand for such products.
└
While PUMA is not afraid to combine performance and non-performance, our goal is not to be a fashion
brand but make sports on trend.
We will continue to create products for her and communicate to our female consumers through campaigns
with our global ambassadors such as Rihanna and Dua Lipa, and Pamela Reif.
Another clear area of product excellence is to create franchises as brands with well-defined consumer
benefits such as Deviate, Velocity and ForeverRun in running, FUTURE, ULTRA, and KING in football as well
as All-Pro and MB in basketball. In non-performance categories, we also see the opportunity to establish
strong product franchises such as Suede, and Palermo on the Classics side or RS-X and Mostro on the
Progressive side. Going forward, we will continue to focus on these key products and ensure a long-term
strategy across all our categories.
We have set up local creation centres in major markets such as the US, Europe, China, India, or Japan so
they can design the products that best resonate with local consumers and we are active in regionally
relevant sports such as cricket, handball, rugby, or netball. We believe that this glocal approach to product
creation combining global Business Units and local creation centres ensures the perfect balance of global
reach and consistency and local relevance of our products.
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Research and product development at PUMA mainly comprise the areas of innovation (new technologies),
product design and model and collection development. The research and product development activities
range from the analysis of scientific studies and customer surveys through the generation of creative ideas
to the implementation of innovations in commercial products. The activities in research and product
development are directly linked to sourcing activities.
As of 31 December 2023, a total of 1,406 people were employed in research and development/ product
management (previous year: 1,307). In 2023, research and development/ product management expenses
totalled € 171.5 million (previous year: € 153.1 million), of which € 89.0 million (previous year: € 82.2 million)
related to research and development.
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SOURCING
THE SOURCING ORGANISATION
PUMA Group’s sourcing functions, referred to as PUMA Group Sourcing (PGS), manages all sourcing related
activities for PUMA and Cobra, including supplier selection, product development, price negotiation and
production control. These activities are centrally managed by PUMA International Trading GmbH (PIT), the
group’s global trading entity, with its head office in the Corporate headquarters in Herzogenaurach
(Germany). In addition, PIT is responsible for procurement and supply into the PUMA distribution channels
worldwide. PIT receives volume forecasts from PUMA subsidiaries and licensees worldwide, translates
these forecasts into production plans which are subsequently distributed to the third-party vendors. The
PUMA subsidiaries confirm their forecasts into purchase orders to PIT, which in turn consolidates these
requirements and purchases from the vendors. There is a clear buy/sell relationship between the sales-
subsidiaries and PIT and between PIT and the vendors, for added transparency.
The centralisation of the sourcing and procurement functions supported by a cloud-based purchase order
management and payment platform has enabled the digitalisation of the supply chain creating
transparency, operational efficiency and reducing complexity. For example, container fill rates are
optimised, foreign currency risks are managed by PIT directly via a centralised currency hedging policy, and
all payments to vendors are automated and paper free.
To meet the needs of our customers in terms of service, quality, social and environmental sustainability, we
focus on six core strategic pillars: partnership, product quality, growth management, margins, acquisition
costs and sustainability. The integration of PUMA's sustainability function into the sourcing organisation
ensures that industry standards, including social, environmental, chemical safety, as well as product
compliance are closely integrated with all our sourcing activities.
Another key aspect in our sourcing setup since 2016 has been the PUMA Forever Better Vendor Financing
Program. The program allows suppliers to be paid earlier. The International Finance Corporation (IFC),
banking group BNP Paribas, HSBC and Standard Chartered offer attractive financing terms to our suppliers,
allowing them to maintain their own lines of credit.
In 2023, no sourcing countries experienced material COVID restrictions. The lifting of restrictions enabled
full normalisation of the supply chain to pre-pandemic levels.
High inflation, fluctuating raw material cost and freight cost impacted the company's operations. In view of
the global macroeconomic situation, which has led to a change in customers' ordering behavior and
increased inventory levels resulted in a need for more cautious procurement from our suppliers. Hence, we
actively adjusted sourcing activities respectively and continued to provide transparency to our sourcing
partners so they can adjust their capacities accordingly. Despite these challenges, we remained committed
to delivering value to our stakeholders and implemented strategies to mitigate the adverse effects of the
prevailing market conditions. Together with sustained demand for PUMA products in 2023 this led to a
further normalisation of PUMA inventory levels, in line with expectations.
Our supplier partners form an integral part of the PUMA business. To recognise our suppliers, we organised
a Supplier Summit in June 2023 at PUMA Headquarters in Herzogenaurach, bringing them together across
all divisions for the first time in over six years. During the Summit, we shared recent and upcoming
business developments and expressed gratitude for their partnership with PUMA.
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THE SOURCING MARKETS
During the financial year 2023, PIT purchased from 158 independent suppliers (previous year: 141) in 29
countries worldwide. The strategic cooperation with long-term partners continues to be one of our key
competitive advantages and was crucial in navigating through ongoing supply chain challenges of 2023.
Asia is the strongest sourcing region overall with 95% of the total volume, followed by the Americas with 3%
and EMEA with 2% (thereof Europe with 1% and Africa with 1%).
As a result, the six most important sourcing countries (94% of the total volume) are all located in the Asian
continent. China is the biggest production country in 2023 with a total of 32%. While the absolute volumes in
China for apparel have decreased, it was further strengthened as a strategic origin for footwear in 2023.
Vietnam – a key development and sourcing hub for all three divisions – is the second biggest production
country with 30%. Cambodia is in third place at 13%, Bangladesh, which focusses on apparel, is in fourth
place at 12%. Indonesia, with an initial focus on footwear production and increasing volumes for apparel,
produces 4% of the total volume and is in fifth place. India – only serving the local market - is in sixth place
at 3%. In the growth market of India, we see ourselves in a good competitive position due to local sourcing
and are therefore also able to limit the impact of the government's protectionist measures on our business.
Rising wage costs, fluctuating material prices, macroeconomic developments and evolving sustainability
regulations, have continued to influence sourcing markets in 2023. Such impacts need to be considered in
allocating the production to ensure a secure, sustainable, and competitive sourcing of products. In this
regard sourcing continues to extend its local supply chain initiatives for markets such as China, India, Latin
America, Türkye and others. Our sourcing activities resumed with business travel to key sourcing markets
in order to visit our existing partners but also evaluate new vendors and opportunities in sourcing countries
such as Indonesia.
↗ G.02 SOURCING REGIONS OF PUMA (in %)
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EMPLOYEES
NUMBER OF EMPLOYEES
The global number of employees on a yearly average was 18,023 in 2023, compared to 16,669 in the previous
year. Personnel expenses increased by a total of 6.4% from € 846.5 million to € 900.6 million in 2023. On
average, personnel expenses per employee amounted to € 50.0 thousand, compared to € 50.8 thousand in
the previous year.
↗ G.03 CHANGES IN EMPLOYEES (annual average / year-end)
As of 31 December 2023, the number of employees was 18,681, compared to 18,071 in the previous year. This
corresponds to an overall increase in the number of employees of 3.4% compared to the previous year. The
development in the number of employees per area is as follows:
↗ G.04 EMPLOYEES (year-end)
13,348
13,016
14,846
16,669
18,023
14,332
14,374
16,125
18,071
18,681
2019
2020
2021
2022
2023
Employees (annual average)
Employees (year-end)
13,343
1,307
3,421
13,647
1,406
3,628
Marketing / retail / sales
Research & development / product
management
Administration and general units
2022
2023
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TALENT RECRUITMENT AND DEVELOPMENT
┌
Our PUMA family is the key to our success. Our human resources strategy forms the basis of our unique
working environment and corporate culture. These help us to attract the best talent worldwide and secure
the future success of the company. The three core elements of this strategy are "People First", sustainable
human resources practices and digitalisation.
People First means understanding employees' needs, values, and potential and putting them at the centre
of our decision making. It helps us create an inclusive culture that respects diversity, promotes health and
well-being, and encourages personal and professional growth.
Sustainable people practises create a workplace culture that prioritises employee health and happiness,
diversity, and inclusivity, and offers ample opportunities for career growth. Our sustainable people practices
are central to building a resilient organisation. By thinking ahead and equipping our employees with the
future skills and leadership qualities necessary, we ensure the long-term success of PUMA.
Digital tools in Human Resources improve the work experience of our employees and help us stay
competitive and agile in a fast-changing business landscape. By using digital technology, we are improving
efficiency, data-driven decision-making, and candidate and employee experiences. We deploy easy-to-use
digital tools that enhance collaboration and productivity and offer digital literacy programmes to ensure all
employees are equipped to thrive in a digital environment.
└
To attract external applicants, we use digital platforms and social media in addition to our careers website
in order to pursue proactive recruitment strategies that are tailored to our specific target groups. Having a
range of on-site and online initiatives at universities both in Germany and abroad creates opportunities to
approach potential employees and identify suitable candidates. Our extensive networks and applicant pools
enable us to fill vacancies quickly. In a competitive labour market, it's essential for us not only to present
ourselves as an attractive employer, but to be viewed as such by our current and potential employees.
PUMA's attractiveness is evidenced by its top rankings as an employer and numerous awards. We are very
proud that 24 of our PUMA subsidiaries across the regions (Europe, APAC, LATAM and North America) won a
coveted Top Employer award in the year under review in recognition of our outstanding corporate culture
and working environment. We can therefore continue to call ourselves a "Global Top Employer". We were
also named one of the "World's Best Employers" by Forbes and a "Leader in Diversity" by the Financial
Times, and awarded the "Great Place to Work" seal in numerous countries.
┌
In 2023 we continued to work on simplifying, accelerating and harmonising our business processes
worldwide, and intensified the digitalisation of our processes. We have been using the "Workday" software
solution for a wide range of HR workflows since 2017. This gives our employees and managers the processes
and tools they need to make everyday human resources management efficient. Furthermore, easy-to-use
dashboards provide managers with important information and data-driven insights that are essential to
their planning work and managerial duties. Analysing our centralised, globally available data provides a
solid foundation for making strategic decisions and delivers measurable results. Our objective is to use this
digitalised infrastructure to increase operational efficiency and continuously improve our HR practices
throughout the employee life cycle at PUMA. This in turn facilitates PUMA's overarching goal of optimising
workflows and employees' experiences. It also gives us the means to deal more effectively with the
dynamics of demanding labour markets.
We empower our employees to shape their own career paths proactively and independently, promoting their
professional development both within Germany and internationally. This is how we succeed in inspiring their
loyalty to the company in the long term. As part of our talent management initiative, we use Workday not
only to assess performance and set targets, but also to make systematic and forward-looking succession
plans for key positions. We identify talent within the company during annual performance reviews and global
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talent conferences, and foster their development through tailored development plans. This approach to
talent management opens up attractive career and development opportunities for our employees. As in the
previous financial year, this year we were again able to fill the majority of key positions worldwide via
internal promotions or horizontal moves, which confirms that our talent management and employee
development strategy is solid.
The ongoing personal and professional development of our employees is crucial to ensuring that our team
has the skills they need to guarantee us continuous growth and market competence, particularly in times of
great uncertainty and change. Workday helps us to avoid skills shortages and maintain a clear overview of
the existing competencies in our team. In 2023 we examined this issue more closely, delving deeper in
particular into the competencies that we will need in the future. The insights we gained from this deep dive
are essential for us in terms of strategic human resources planning. They form the basis for our
recruitment activities and for the development of new training programmes.
The range of training that we provide includes a number of online and offline training courses and
workshops, which are either standardised or tailored to individual needs. With "LinkedIn Learning" and "Good
Habitz", there are now over 23,000 different training courses available for our employees. They also have a
wide range of learning categories to choose from for self-directed personal and professional development.
Like last year, we focused particularly on the topics of mental well-being, resilience and mindfulness this
year, providing our employees with a wide range of services to best support them in dealing with the
increased mental strain that can often arise in this politically and economically difficult environment.
We have a proactive strategy for engaging learners. This includes putting on entertaining activities about
various topics, gamification and internal learning competitions, not to mention the quarterly Top Learner
Award for the most active learners worldwide. Thanks to this approach, PUMA was nominated for the
"eLearning Journal" Award 2024 in the "Learner Engagement" category. We further expanded the Digital
Agile Coach programmes that we offer to various target groups.
We have a global Busuu licence that provides access to 13 languages. This enables all our employees,
including retail staff, to learn new languages online in a flexible way that meets their needs. They are
supported by live lessons with qualified trainers. Learning is undertaken both via an app and in direct
contact with others. There is a particular focus on English, but Busuu also facilitates the learning of other
languages for personal or professional purposes.
With a range of dual-study programmes and apprenticeships, as well as study-related internships, we offer
adequate entry-level and development opportunities for talented individuals at all levels.
We offer our managers numerous training and development opportunities. All managers worldwide
complete our internal global leadership training programme, consisting of the ILP (International Leadership
Programme) and ILP² seminar series. The programme ensures a uniform understanding of leadership at
PUMA and promotes development among participants over the longer term. It offers intensive training and
coaching, including interactive learning, role play simulations, and best practice learning, as well as joint
projects. The key topics include coaching, mindful leadership, and agile working methods. The PUMA
Leadership Expedition training programme aims to empower our managers to lead effectively in the VUCA
world (VUCA is an acronym for volatile, uncertain, complex, and ambivalent). The programme is completely
virtual, easily accessible, and designed as a self-directed and tailor-made learning format. It includes self-
selected virtual training sessions with a trainer, regular communication with other international
participants in smaller working groups, and coached sessions, as well as individual learning sprints and
check-ins with the trainers. This innovative training programme received the eLearning AWARD 2023 in the
"Agile Learning" category.
Our training from employee to manager is intended to prepare employees who are taking on a management
position for the first time specifically for their new role. In addition to the training module, the programme
also offers individual coaching.
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Our "Speed Up" and "Speed Up²" development programmes are aimed at employees across different levels
of the organisation. These programmes help to fully prepare employees for the next stage of their career,
covering interdisciplinary projects and deployments, targeted training, mentoring, coaching and job
rotations. They are designed to actively promote selected top talent. Another essential aspect of these
programmes is increasing the visibility of participants through to the highest level of management,
promoting multi-disciplinary cooperation and developing a strong professional network.
Feedback from our employees is of the utmost importance to us. Our listening strategy comprises various
methods of receiving feedback and aims to capture and understand the opinions and needs of our workforce.
To gather their views and suggestions, we prepare questionnaires, regular short surveys, focus groups,
interviews and mood analyses, often using systems such as Amber and Workday. The resulting feedback
affirms our commitment to continuing and further developing the initiatives that have been launched.
Since 2009 we have been conducting regular global employee surveys to obtain feedback from our staff on a
variety of topics and to measure their engagement. A total of 15,339 employees took part in the global survey
we carried out in 2023 and took the opportunity to tell us what they think about their workplace and their
day-to-day work. This equates to a participation rate of 85% (2021: 86%). We saw an increase in positive
ratings in two categories. Four categories remained at their already high level and seven categories saw a
slight decline of 1% compared to the previous survey. We compare our survey results with various sets of
market data, including high-performance data that we surpass or are equal to in up to four categories.
High-performing companies are those that outperform the market in financial terms and regularly achieve
excellent employee survey results. This positive feedback encourages us to continue and strengthen the
measures we have already introduced. The survey results were communicated at global, local and
departmental level, and follow-up measures were defined.
WORKS COUNCIL
Our trust-based, constructive collaboration with the Works Councils is an important part of our corporate
culture. In 2023, the European Works Council of PUMA SE represented employees from 14 European
countries and had 18 members. The German Works Council of PUMA SE consisted of 17 members and
represented the employees of the PUMA Group in Germany. A designated member of the Works Council in
Germany represents the interests of employees with disabilities.
COMPENSATION
We at PUMA offer our employees a targeted and competitive compensation system, which consists of
several components. In addition to a fixed base salary, the PUMA bonus system, profit-sharing programmes,
and various social benefits form part of an attractive and performance-based compensation system. In
addition, we offer our employees comprehensive services in the areas of further development, employee
motivation, health management, and well-being. We also offer long-term incentive programmes for the
senior management level that honour the sustainable development and performance of the business. The
bonus system is transparent and globally standardised. Incentives are exclusively linked to company goals.
└
MANAGEMENT SYSTEM
We use a variety of indicators to manage our performance in relation to our top corporate goals. We have
defined growth and profitability as key targets within finance-related areas. Our focus therefore is on
improving our sales and operating result (EBIT). These are the most significant financial performance
indicators. Moreover, we aim to minimise working capital and improve free cash flow. Our Group's Planning
and Management System has been designed to provide a variety of instruments in order to assess current
business developments and derive future strategy and investment decisions. This involves the continuous
monitoring of key financial indicators within the PUMA Group and a monthly comparison with budget
targets. Any deviations from the targets are analysed in detail and appropriate countermeasures are taken
in the event such deviations have a negative impact.
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Changes in sales are also influenced by currency exchange effects. This is why we also state any changes
in sales in euros, the reporting currency, adjusted for currency exchange effects in order to provide
information that is relevant to the decision-making process when assessing the revenue position. Currency-
adjusted sales are used for comparison purposes and are based on the values that would arise if the foreign
currencies included in the consolidated financial statements were not converted at the average rates for the
previous year, but were instead translated at the corresponding average rates for the current year. In the
case of countries that are in a hyperinflationary environment, the previous year's amounts are not converted
at the reporting date rates of the previous year, but at those of the current reporting year. As a result,
currency-adjusted figures are not to be regarded as a substitute or as superior financial indicators, but
should instead always be regarded as additional information.
We use the indicator free cash flow in order to determine the change in cash and cash equivalents after
deducting all expenses incurred to maintain or expand the organic business of the PUMA Group. Free cash
flow is calculated from the cash flow from operating activities and investment activities. We also use the
indicator free cash flow before acquisitions, which goes beyond free cash flow and includes an adjustment
for incoming and outgoing payments that are associated with shareholdings.
We use the indicator working capital in order to assess the financial position. Working capital is essentially
the difference between current assets – including in particular inventories and trade receivables – and
current liabilities. Cash and cash equivalents, the positive and negative market values of derivative financial
instruments and current finance and lease liabilities are not included in working capital.
Besides the above mentioned significant indicators, sustainability and creating stakeholder value is an
important aspect of PUMA’s overall business performance. Acting in a responsible manner and continuously
improving PUMAs impacts on the environment and people are not only expected by our employees,
consumers and investors but also supports our financial performance. Since many years, and in line with
our current 10FOR25 sustainability strategy, we use several indicators to assess PUMA’s performance
against environmental and social criteria. Those indicators relate to climate action, human rights (including
occupational health and safety) as well as circularity and are part of the performance bonus of our
leadership team globally. Since a large portion of PUMAs impact on the environment and people is created
in our supply chain, we also include supply chain specific sustainability performance indicators in our
annual reporting. For further details, please refer to the sustainability section of this report and our
corporate website.
The calculation of the financial control parameters that PUMA uses is defined as follows:
The recognition of sales is based on the provisions of IFRS 15 Revenue from contracts with customers.
PUMA's gross profit is calculated as sales minus cost of sales. Cost of sales mainly comprise the carrying
amounts of inventory that were recognised as expenses during the reporting period. The gross profit margin
is calculated as gross profit divided by sales.
PUMA's operating result (EBIT) is the sum of sales and royalty and commission income, minus cost of sales
and other operating income and expenses (OPEX). EBIT is defined as operating result, less depreciation and
amortisation, provisions and impairment loss, before interest (= financial result) and before taxes. The
financial result includes interest income and interest expenses, currency conversion differences and the
effects from the net position of monetary items in connection with hyperinflation accounting. The EBIT
margin is calculated as EBIT divided by sales.
PUMA's working capital is calculated based on the sum of current assets less the sum of current liabilities.
In addition, cash and cash equivalents and positive and negative market values of derivative financial
instruments are deducted. The market values of derivative financial instruments are recognised in the
balance sheet in the items Other Current Assets and Other Current Liabilities not attributable to working
capital. Current financial and lease liabilities are also not part of working capital.
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We also use the EBITDA indicator, which represents the operating result before interest (= financial result),
taxes and depreciation and amortisation, to assess the results of operations. EBITDA is calculated based on
the operating result (EBIT) adding depreciation and amortisation, which may also contain any incurred im-
pairment expenses relating to non-current assets. The EBITDA margin is calculated as EBITDA divided by
sales.
INFORMATION REGARDING THE NON-FINANCIAL REPORT
In accordance with Sections 289b and 315b of the German Commercial Code (Handelsgesetzbuch – HGB),
we are required to make a non-financial declaration for PUMA SE and the PUMA Group within the combined
management report or present a non-financial report external to the combined management report, in
which we report on environmental, social and other non-financial aspects. PUMA has been publishing
sustainability reports since 2003 under the provisions of the Global Reporting Initiative (GRI) and since 2010
has published financial data and key sustainability indicators in a single report. In this context, we report the
information required under Sections 289b and 315b of the HGB in the sustainability chapter of our annual
report. The non-financial report for the financial year 2023 is published together with the combined
management report and can be accessed at the following location on our website:
https://about.PUMA.com/en/investor-relations/financial-reports
┌
Furthermore, important sustainability information can always be found in the sustainability section on
PUMA's website: http://about.PUMA.com/en/sustainability
└
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ECONOMIC REPORT
GENERAL ECONOMIC CONDITIONS
GLOBAL ECONOMY
According to the winter forecast of the Kiel Institute for the World Economy (Kiel Institut für Weltwirtschaft –
IfW Kiel) dated 13 December 2023, the global economy held up better than expected in view of the inflation
shock and the massive tightening of monetary policy in 2023, even if economic expansion was only
moderate. Industrial production and world trade remained without momentum until the end of the year. The
experts at IfW Kiel expect global gross domestic product (GDP) to have risen by a total of 3.1% for the past
financial year 2023. Major differences in economic momentum were recorded both in the advanced
economies and in the emerging markets. With regard to China, IfW Kiel experts note that, by historical
comparison, the pace of expansion is still low and that China has largely lost its role as the engine of global
economic expansion. In addition, accelerated inflation in Argentina and Turkey had a negative impact on
economic development.
SPORTING GOODS INDUSTRY
The sporting goods industry was faced with various challenges in 2023, which contributed to a difficult
market environment. This was mainly due to the sharp rise in inflation, which led to a corresponding
negative impact on consumer spending. In addition, excess inventory and sales-promoting measures were
unfavourable to industry development.
Major sporting events in 2023, such as the Athletics World Championships in Hungary and the FIFA Women's
World Cup in Australia and New Zealand, had a positive effect on the sporting goods industry. To our
knowledge, sporting activity and the pursuit of an increasingly healthy and sustainable lifestyle continued to
gain in importance for an ever-increasing proportion of the world's population, following the COVID-19
pandemic. Among other things, this resulted in the increased popularity of athletic footwear and
leisure/athletic apparel as an integral part of everyday fashion ("athleisure").
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SALES DEVELOPMENT
ILLUSTRATION OF SALES DEVELOPMENT IN 2023 COMPARED TO THE OUTLOOK
In its combined management report for 2022, PUMA forecast a currency-adjusted increase in sales in the
high single-digit percentage range for financial year 2023. Sales development was affected by the significant
devaluation of the Argentine peso and the associated translation effects at the closing rate, which had an
extraordinary impact in the fourth quarter and on the full-year 2023. Due to the extent and timing of these
currency effects, we were unable to fully compensate for the overall negative impact at the end of the year.
Nevertheless, sales development was largely in line with the outlook. More details on sales development in
the financial year 2023 are provided below.
SALES
PUMA's sales in the reporting currency, the euro, increased by 1.6% to € 8,601.7 million in the financial year
2023 (previous year: € 8,465.1 million). Currency-adjusted sales increased by 6.6%. This allowed PUMA to
achieve record sales of € 8.6 billion in 2023, the year of the 75th anniversary of the company, despite the
difficult market environment.
↗ G.05 SALES (€ million)
In the footwear division, sales increased in the reporting currency, the euro, by 6.1% to € 4,583.4 million.
Currency-adjusted sales increased by 12.4%. The footwear division continued to be the growth driver and the
strongest growth was achieved in the Sportstyle, Teamsport and Basketball categories. The share of the
footwear division in total sales rose from 51.0% in the previous year to 53.3% in 2023.
Sales in the apparel division fell by 4.6% to € 2,763.0 million in the reporting currency, the euro. Adjusted for
currency effects, sales fell only slightly by 0.3%. Higher sales in the categories Teamsport and Running &
Training were compared to lower sales in the Sportstyle and Motorsport categories. The share of the
apparel division decreased to 32.1% of Group sales (previous year: 34.2%).
The accessories division reported an increase in sales in the reporting currency, the euro, of 0.3% to
€ 1,255.3 million. This corresponds to a currency-adjusted sales growth of 3.1%. The growth in the
Teamsport category was partly offset by slightly lower sales with Cobra golf clubs. In 2023, the share of the
accessories division decreased to 14.6% of Group sales from 14.8% in the previous year.
5,502.2
5,234.4
6,805.4
8,465.1
8,601.7
2019
2020
2021
2022
2023
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230
↗ G.06 SALES BY PRODUCT DIVISIONS (€ million)
OWN RETAIL ACTIVITIES
PUMA's own retail activities include direct sales to our consumers ("Direct-to-consumer business"). This
includes selling to our customers in PUMA's own retail stores, the so-called "Full Price Stores" and
"Factory Outlets". Our e-commerce business on our own online platforms and on the platforms of online
retailers, which we refer to as "marketplaces", is also part of the direct sales to our consumers. Our own
retail businesses ensure regional availability of PUMA products and the presentation of the PUMA brand in
an environment suitable to our brand positioning.
PUMA's direct-to-consumer sales increased by 17.5% currency-adjusted to € 2,133.0 million in the financial
year 2023. This corresponds to a share of 24.8% of total sales (previous year: 23.1%). Adjusted for currency
effects, sales in PUMA's own full-price stores and factory outlets increased by 18.8% in 2023. In the e-
commerce business, sales increased by 15.0% in 2023, adjusted for currency effects. The continued strong
sales growth in our DTC business was due to continued brand desirability, the opening of own retail stores
and their increase in productivity.
↗ G.07 DIRECT-TO-CONSUMER SALES
881.1
892.7
1,124.5
1,251.0
1,255.3
2,068.7
1,974.1
2,517.3
2,896.3
2,763.0
2,552.5
2,367.6
3,163.6
4,317.9
4,583.4
2019
2020
2021
2022
2023
Accessories
Apparel
Footwear
1,395.3
1,424.5
1,724.8
1,951.4
2,133.0
25.4%
27.2%
25.3%
23.1%
24.8%
2019
2020
2021
2022
2023
Direct-to-consumer sales in € million
in % of sales
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LICENSING BUSINESS
PUMA grants licenses to independent partners for various product divisions, such as watches, glasses,
safety shoes, workwear and gaming accessories. In addition to design, development and manufacture, these
companies are also responsible for product distribution. Income from license agreements also includes
some distribution licenses for different markets. PUMA's royalty and commission income increased by
14.0% to € 38.5 million in the financial year 2023 (previous year: € 33.8 million). The main reason for the
increase was the granting of new licences in the golf and accessories segment.
REGIONAL DEVELOPMENT
In the following explanation of the regional development of sales, the sales are allocated to the customers'
actual region ("customer site"). It is divided into three geographical regions (EMEA, Americas and
Asia/Pacific).
PUMA's sales in the reporting currency, the euro, increased by 1.6% in the financial year 2023. This
corresponds to a currency-adjusted sales increase of 6.6% compared to the previous year. This currency-
adjusted growth resulted in particular from good sales performance in the EMEA and Asia/Pacific regions,
which both achieved double-digit growth rates. In contrast, the Americas region recorded a slight decrease
in sales.
In the EMEA region, sales in the reporting currency, the euro, rose by 9.8% to € 3,418.4 million. Adjusted for
currency effects, this corresponds to an increase in sales of 13.4%. Almost all countries in the region, with
the exception of Great Britain and Sweden, contributed to this development with sales growth. Particularly
strong growth came from Germany, Spain, Italy and Turkey. In terms of Group sales, the EMEA region's
share rose from 36.8% in the previous year to 39.7% in 2023.
With regard to product divisions, sales from footwear recorded a currency-adjusted increase of 21.7%.
Currency-adjusted sales of apparel increased by 8.2%. Currency-adjusted sales of accessories rose by 2.5%.
↗ G.08 EMEA SALES (€ million)
2,001.4
1,982.9
2,531.7
3,113.8
3,418.4
2019
2020
2021
2022
2023
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232
In the Americas region, sales in the reporting currency, the euro, decreased by 8.0% to € 3,389.9 million. The
decline in sales in the reporting currency was impacted by negative exchange rate effects due to the strong
devaluation of the Argentine peso against the euro. Currency-adjusted sales decreased by 2.4%. The
currency-adjusted sales decline was mainly due to a difficult macroeconomic environment, high inventory
levels in the trade and PUMA's relative dependence on the off-price wholesale business in the USA. The
Americas region's share of Group sales decreased from 43.5% in the previous year to 39.4% in 2023.
In terms of product divisions, both footwear (+1.5% currency-adjusted) and accessories (+4.8% currency-
adjusted) recorded sales growth compared to the previous year. In contrast, currency-adjusted sales in the
apparel division fell by 13.3%.
↗ G.09 AMERICAS SALES (€ million)
In the Asia/Pacific region, sales in the reporting currency, the euro, rose by 7.7% to € 1,793.4 million. Adjusted
for currency effects, this corresponds to an increase in sales of 13.6%. While China, India and Singapore,
among others, recorded double-digit sales growth, sales declined in South Korea and Australia. The share of
the Asia/Pacific region in Group sales increased from 19.7% in the previous year to 20.8% in 2023.
In terms of product divisions, both footwear (+22.6% currency-adjusted) and apparel (+5.9% currency-
adjusted) recorded sales growth compared to the previous year. In contrast, currency-adjusted sales in the
accessories division fell by 1.4%.
↗ G.10 ASIA/PACIFIC SALES (€ million)
1,944.0
1,775.2
2,636.9
3,685.9
3,389.9
2019
2020
2021
2022
2023
1,556.9
1,476.3
1,636.8
1,665.3
1,793.4
2019
2020
2021
2022
2023
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RESULTS OF OPERATIONS
↗ T.01 INCOME STATEMENT
2023
2022
€ million
%
€ million
%
+/-%
Sales
8,601.7
100.0%
8,465.1
100.0%
1.6%
Cost of sales
-4,615.1
-53.7%
-4,562.3
-53.9%
1.2%
Gross profit
3,986.6
46.3%
3,902.7
46.1%
2.1%
Royalty and commission income
38.5
0.4%
33.8
0.4%
14.0%
Other operating income and expenses
-3,403.5
-39.6%
-3,295.9
-38.9%
3.3%
Operating Result (EBIT)
621.6
7.2%
640.6
7.6%
-3.0%
Financial result
-143.3
-1.7%
-88.9
-1.1%
61.2%
Earnings before taxes (EBT)
478.3
5.6%
551.7
6.5%
-13.3%
Taxes on income
-117.8
-1.4%
-127.4
-1.5%
-7.5%
- Tax rate
24.6%
23.1%
Net income attributable to non-controlling
interests
-55.7
-0.6%
-70.9
-0.8%
-21.4%
Net income
304.9
3.5%
353.5
4.2%
-13.7%
Weighted average number of outstanding
shares (million shares)
149.85
149.65
0.1%
Weighted average number of outstanding
shares, diluted (million shares)
149.87
149.66
0.1%
Earnings per share (€)
2.03
2.36
-14.0%
Earnings per share (€) - diluted
2.03
2.36
-14.0%
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ILLUSTRATION OF EARNINGS DEVELOPMENT IN 2023 COMPARED TO THE OUTLOOK
In the outlook in the combined management report for 2022, PUMA forecast an operating result (EBIT) in the
range between € 590 million and € 670 million for the financial year 2023 (2022: € 641 million). Thanks to
continued strong brand momentum, exciting product launches, strong partnerships along the value chain,
and supported by our operational flexibility, PUMA was able to fully achieve its forecast for operating result
for the full-year 2023, despite the significant devaluation of the Argentine peso.
More details on earnings development in the financial year under review are provided below.
GROSS PROFIT MARGIN
PUMA's gross profit in the financial year 2023 increased by 2.1% from € 3,902.7 million to € 3,986.6 million.
The gross profit margin improved by 20 basis points from 46.1% to 46.3%. The increase was due to price
adjustments, a more favourable regional and distribution channel mix, and positive currency effects. In
contrast, a discount-intensive market environment with higher sales-promoting measures, fluctuating
sourcing prices due to raw materials and fluctuating freight costs had a negative effect.
The gross profit margin in the footwear division improved from 44.9% in the previous year to 45.4% in 2023.
The gross profit margin for apparel increased from 47.3% to 47.8%. In contrast, the gross profit margin for
accessories fell from 47.4% to 46.6%.
↗ G.11 GROSS PROFIT/GROSS PROFIT MARGIN
2,686.4
2,458.0
3,257.8
3,902.7
3,986.6
48.8%
47.0%
47.9%
46.1%
46.3%
2019
2020
2021
2022
2023
Gross profit in € million
Gross profit margin in %
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OTHER OPERATING INCOME AND EXPENSES
The net expense of other operating income and expenses (OPEX) increased by 3.3% in financial year 2023 to
€ 3,403.5 million (from € 3,295.9 million in the previous year). The increase is due to sales-related
distribution and other variable costs, the strong growth in our DTC sales channel and higher marketing
investments. This development was partially offset by operational leverage in other cost areas and
favourable exchange rate effects. The cost ratio increased from 38.9% in the previous year to 39.6% in 2023.
↗ G.12 OPERATING EXPENSES (as a % of sales)
Within selling expenses, marketing/retail expenses increased by 4.1% to € 1,643.2 million, while the cost
ratio was 19.1% of sales in 2023, compared with a cost ratio of 18.6% in the previous year. Other selling
expenses, which mainly include sales-related costs and costs for warehousing and logistics, increased by
5.2% to € 1,155.8 million. The cost ratio of other selling expenses decreased to 13.4% of sales in 2023
compared to a cost ratio of 13.0% in the previous year.
Research and development/product management expenses increased by 12.0% to € 171.5 million compared
to the previous year and the cost ratio rose slightly to 2.0%. Other operating income amounted to
€ 17.8 million in the past financial year and essentially includes income from the sale of fixed assets and
income from the disposal of finance leases. General and administrative expenses fell by 3.2% to
€ 450.9 million in 2023. The cost ratio of general and administrative expenses improved to 5.2% of sales in
2023. Depreciation and amortisation is included in the relevant costs and total € 351.7 million (previous year:
€ 332.8 million). In addition, the respective costs include impairment expenses totalling € 5.7 million and
corresponding reversals of impairment losses in the amount of € 11.9 million.
41.3%
43.3%
40.0%
38.9%
39.6%
2019
2020
2021
2022
2023
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236
RESULT BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTISATION (EBITDA)
The result before interest (= financial result), taxes, depreciation and amortisation (including impairment
losses and reversals of impairment losses) (EBITDA) decreased by 3.2% to € 967.1 million in financial year
2023 (from € 999.3 million in the previous year). The EBITDA margin decreased from 11.8% in the previous
year to 11.2% in 2023.
OPERATING RESULT (EBIT)
In the 2023 financial year, operating result decreased by 3.0% to € 621.6 million (from € 640.6 million in the
previous year). Despite higher sales and an improved gross profit margin, the slightly stronger increase in
other operating income and expenses in comparison with sales led to this decline. The EBIT margin
decreased from 7.6% in the previous year to 7.2% in 2023.
↗ G.13 OPERATING RESULT
FINANCIAL RESULT
The financial result in 2023 decreased from a total of € -88.9 million in the previous year to € -143.3 million.
This development is mainly due to the sharp increase in expenses from currency conversion differences
totalling € -69.4 million in 2023, compared to just € - 2.2 million in the previous year, and also includes
valuation losses in connection with the devaluation of the Argentine peso. The increase in interest expenses
in 2023 to a total of € -100.8 million (previous year: € - 54.4 million) also contributed significantly to this
development. In contrast, interest income increased to a total of € 37.8 million in 2023 (previous year:
€ 32.3 million) and expenses from hyperinflation effects fell to € - 23.7 million (previous year:
€ - 27.8 million). The remaining other financial income and expenses, which in particular include interest
components in connection with forward exchange contracts ("swap points"), improved to € 12.8 million
compared to € - 36.8 million in the previous year.
EARNINGS BEFORE TAXES (EBT)
In the financial year 2023, PUMA generated earnings before taxes of € 478.3 million. This corresponds to a
decrease of 13.3% compared to the previous year (€ 551.7 million). Tax expenses decreased to € 117.8 million,
compared to € 127.4 million in the previous year. Accordingly, the tax rate rose from 23.1% to 24.6% in 2023.
440.2
209.2
557.1
640.6
621.6
8.0%
4.0%
8.2%
7.6%
7.2%
2019
2020
2021
2022
2023
Operating result in € million
as a % of sales
PUMA Annual Report 2023
↗ Combined Management Report
237
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
Net earnings attributable to non-controlling interests relate to companies in the North American market, in
each of which the same shareholder holds a minority stake. The earnings attributable to these interests
decreased by 21.4% to € 55.7 million in the financial year 2023 (previous year: € 70.9 million). The companies
affected are PUMA United North America LLC, PUMA United Aviation North America LLC, PUMA United
Canada ULC and Janed Canada LLC. The business purpose of these companies is mainly the sale of socks,
bodywear, accessories and children's apparel in the North American market.
CONSOLIDATED NET INCOME
Consolidated net income decreased by 13.7% in financial year 2023 to € 304.9 million (from € 353.5 million).
Despite higher sales and an improved gross profit margin, the slightly stronger increase in other operating
income and expenses compared to sales and the declining financial result led to this development.
Earnings per share and diluted earnings per share decreased from € 2.36 in the previous year to € 2.03 in
the financial year 2023, in line with the development of the consolidated net income.
DEVELOPMENT OF THE SEGMENTS
Internal management of the PUMA Group is carried out across seven segments (Europe, EEMEA, North
America, Latin America, Greater China, Asia/Pacific (excluding Greater China) and stichd), based on the
registered office of the respective subsidiaries. The differences from the presented regional development of
sales are essentially down to the separated "stichd" segment and India and Southeast Asia, which are
allocated to the EEMEA segment.
The operating segments developed in line with the trends already discussed. Exceptions were the EEMEA
segment, which showed double-digit growth rates due to the comparatively strong growth of sales and
operating result in several countries and especially in Turkey. In the North America segment, the difficult
macroeconomic environment, high inventory levels in the trade and the relative dependence on wholesale
business in the off-price segment led to a decline in sales and operating result. In the Latin America
segment, operating result was only at the previous year's level, despite double-digit sales growth in Mexico,
Chile and Brazil. This was mainly due to the negative currency exchange effects resulting from the sharp
devaluation of the Argentine peso, which had a strong impact on profitability in the Latin America segment.
In the Greater China segment, double-digit sales growth and a significant improvement in operating result
were achieved due to the continued recovery and re-opening of the market. The stichd segment recorded a
decline in operating result due to start-up costs in the Formula 1 business and due to expenses in
connection with the implementation of SAP in 2023.
PUMA Annual Report 2023
↗ Combined Management Report
238
DIVIDENDS
The positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose
the distribution of a dividend of € 0.82 per share for the financial year 2023 at the Annual General Meeting on
22 May 2024. This corresponds to a payout ratio of 40.3% of consolidated net income. The higher payout ratio
results from the strong improvement in free cash flow and reflects the underlying positive operating
business development. In general, PUMA's dividend policy continues to provide for a payout of 25% to 35% of
consolidated net income. The payment of the dividend is to take place in the days after the Annual General
Meeting at which the decision is made on the payout. In the previous year, a dividend of € 0.82 per share was
paid out (payout ratio for previous year: 34.7%).
↗ G.14 EARNINGS/DIVIDEND PER SHARE (in €)
1.76
0.53
2.07
2.36
2.03
0.00
0.16
0.72
0.82
0.82
2019
2020
2021
2022
2023
Earnings per share
Dividend per share
PUMA Annual Report 2023
↗ Combined Management Report
239
NET ASSETS AND FINANCIAL POSITION
↗ T.02 BALANCE SHEET
31 Dec. 2023
31 Dec. 2022
€ million
%
€ million
%
+/-%
Cash and cash equivalents
552.9
8.3%
463.1
6.8%
19.4%
Inventories *
1,804.4
27.2%
2,245.1
33.1%
-19.6%
Trade receivables *
1,118.4
16.8%
1,064.9
15.7%
5.0%
Other current assets *
385.6
5.8%
304.1
4.5%
26.8%
Other current assets
69.8
1.1%
123.2
1.8%
-43.4%
Current assets
3,931.1
59.2%
4,200.4
62.0%
-6.4%
Deferred tax assets
296.1
4.5%
295.0
4.4%
0.3%
Right-of-use assets
1,087.7
16.4%
1,111.3
16.4%
-2.1%
Other non-current assets
1,325.6
20.0%
1,166.0
17.2%
13.7%
Non-current assets
2,709.3
40.8%
2,572.3
38.0%
5.3%
Total assets
6,640.4
100.0%
6,772.7
100.0%
-2.0%
Current borrowings
145.9
2.2%
75.9
1.1%
92.3%
Trade payables *
1,499.8
22.6%
1,734.9
25.6%
-13.6%
Other current liabilities *
631.3
9.5%
792.3
11.7%
-20.3%
Current lease liabilities
212.4
3.2%
200.2
3.0%
6.1%
Other current liabilities
47.7
0.7%
39.7
0.6%
20.1%
Current liabilities
2,537.2
38.2%
2,843.0
42.0%
-10.8%
Non-current borrowings
426.1
6.4%
251.5
3.7%
69.4%
Deferred tax liabilities
12.4
0.2%
42.0
0.6%
-70.5%
Pension provisions
22.5
0.3%
22.4
0.3%
0.7%
Non-current lease liabilities
1,020.0
15.4%
1,030.3
15.2%
-1.0%
Other non-current liabilities
40.0
0.6%
44.7
0.7%
-10.5%
Non-current liabilities
1,520.9
22.9%
1,390.9
20.5%
9.4%
Equity
2,582.3
38.9%
2,538.8
37.5%
1.7%
Total liabilities and equity
6,640.4
100.0%
6,772.7
100.0%
-2.0%
Working Capital
1,177.3
1,086.8
8.3%
- in % of sales
13.7%
12.8%
* included in working capital
PUMA Annual Report 2023
↗ Combined Management Report
240
EQUITY RATIO
PUMA has a very solid capital base. As of the balance sheet date, the equity of the PUMA Group increased by
1.7%, from € 2,538.8 million in the previous year to € 2,582.3 million as of 31 December 2023. Although the
positive consolidated income contributed to the increase in Group equity, there was a negative impact of
€ - 85.9 million from the other comprehensive income that is directly recorded in equity, mainly due to
negative currency conversion differences. The balance sheet total decreased slightly by 2.0% as at the
balance sheet date, to € 6,640.4 million (from € 6,772.7 million in the previous year). Overall, this resulted in
an increase in the equity ratio of 1.4 percentage points from 37.5% in the previous year to 38.9% as at
31 December 2023.
↗ G.15 BALANCE SHEET TOTAL/EQUITY RATIO
WORKING CAPITAL
As of the balance sheet date, working capital increased by 8.3% from € 1,086.8 million in the previous year to
€ 1,177.3 million as of 31 December 2023. In relation to sales in the respective financial year, this corresponds
to an increase in the working capital ratio from 12.8% in the previous year to 13.7% at the end of 2023. This
development was mainly attributable to the decline of trade payables due to the adjusted sourcing volumes
in 2023 and the decrease in other current liabilities and provisions included in working capital. In addition,
higher trade receivables and higher other current assets attributable to working capital contributed to the
increase. In contrast, the reduction in inventories had the opposite effect.
On the assets side, inventories fell by 19.6% as at the balance sheet date, to € 1,804.4 million (from
€ 2,245.1 million). This development shows that our previous measures to reduce inventories to an
appropriate level were successful. Trade receivables increased due to longer customary payment terms by
5.0% to € 1,118.4 million (from € 1,064.9 million) as at the balance sheet date. Other current assets, which are
attributable to working capital rose by 26.8% to € 385.6 million (from € 304.1 million), primarily due to higher
advance payments and tax refund claims.
On the liabilities side, trade payables decreased by 13.6% to € 1,499.8 million (from € 1,734.9 million) due to
the adjusted sourcing volumes. The other current liabilities and provisions, which are contained in working
capital and include, among other things, customer bonus and warranty provisions, decreased by 20.3% to
€ 631.3 million (from € 792.3 million).
4,378.2
4,684.1
5,728.3
6,772.7
6,640.4
43.9%
37.7%
39.8%
37.5%
38.9%
2019
2020
2021
2022
2023
Total assets in € million
Equity ratio in %
PUMA Annual Report 2023
↗ Combined Management Report
241
↗ G.16 WORKING CAPITAL
OTHER ASSETS AND OTHER LIABILITIES
Other current assets outside of working capital include, in particular, the positive market value of derivative
financial instruments and current receivables from leases. Overall, other current assets outside of working
capital decreased to € 69.8 million, compared to € 123.3 million in the previous year.
Right-of-use assets fell slightly by 2.1% to € 1,087.7 million (from € 1,111.3 million in the previous year). The
decline was due to the ongoing depreciation of right-of-use assets and the effects of subleasing. In contrast,
the additions to right-of-use assets in 2023 were mainly related to newly opened retail stores and extensions
or contract amendments to existing retail stores as well as the opening of new warehouses or the expansion
of existing warehouses. The right-of-use assets referred to own retail stores totalling € 464.2 million
(previous year: € 430.9 million), warehouses and offices totalling € 557.7 million (previous year:
€ 613.1 million) and other lease items, mainly technical equipment and machines and motor vehicles,
totalling € 65.7 million as of 31 December 2023 (previous year: € 67.3 million). The associated current and
non-current leasing liabilities remained virtually unchanged overall.
Other non-current assets, which mainly comprise intangible assets and property, plant and equipment,
increased by 13.7% to € 1,325.6 million (from € 1,166.0 million) in the past financial year. The increase is
linked to the expansion of investment activities in 2023, following lower investments in non-current assets in
previous years. In addition, the acquisition of investment property totaling € 21.1 million contributed to the
increase.
As at 31 December 2023, current borrowings include the current proportion of promissory note loans in the
amount of € 125.0 million (previous year: € 60.0 million) and short-term bank liabilities amounting to
€ 20.9 million (previous year: € 15.9 million).
Other current liabilities, which exclusively include the negative market value of derivative financial
instruments, increased from € 39.7 million to € 47.7 million compared to the previous year.
Non-current borrowings include promissory note loans totalling € 426.1 million (previous year:
€ 251.5 million).
Pension provisions remained almost unchanged at € 22.5 million (previous year: € 22.4 million).
549.4
465.8
727.9
1,086.8
1,177.3
10.0%
8.9%
10.7%
12.8%
13.7%
2019
2020
2021
2022
2023
Working capital in € million
Working capital as a % of sales
PUMA Annual Report 2023
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242
Other non-current liabilities amounted to € 40.0 million as at the balance sheet date (previous year:
€ 44.7 million).
CASH FLOW
↗ T.03 CASH FLOW STATEMENT
1-12/2023
1-12/2022
€ million
€ million
+/-%
Earnings before taxes (EBT)
478.3
551.7
-13.3%
Financial result and non-cash effected expenses and income
485.7
367.2
32.3%
Gross cash flow
964.1
918.9
4.9%
Change in current assets, net
-129.2
-343.3
-62.4%
Payments for taxes on income
-181.3
-157.4
15.2%
Net cash from operating activities
653.6
418.3
56.3%
Payments for investing in fixed assets
-300.4
-263.6
13.9%
Other investing and divestment activities incl. interest received
15.8
22.9
-31.1%
Net cash used in investing activities
-284.6
-240.8
18.2%
Free cash flow
369.0
177.5
107.9%
Free cash flow (before acquisitions)
369.0
177.5
107.9%
Dividend payments to shareholders of PUMA SE
-122.8
-107.7
14.0%
Dividend payments to non-controlling interests
-92.4
-73.3
26.2%
Proceeds from borrowings
299.6
17.9
1571.2%
Cash repayments of borrowings
-59.1
-69.5
-14.9%
Repayments of lease liabilities
-208.0
-190.0
9.4%
Interest paid
-94.3
-53.8
75.3%
Net cash used in financing activities
-277.1
-476.4
-41.8%
Exchange rate-related changes in cash and cash equivalents
-2.1
4.4
-146.8%
Changes in cash and cash equivalents
89.8
-294.4
-130.5%
Cash and cash equivalents at the beginning of the financial year
463.1
757.5
-38.9%
Cash and cash equivalents at the end of the financial year
552.9
463.1
19.4%
NET CASH FROM OPERATING ACTIVITIES
Gross cash flow increased by 4.9% to € 964.1 million in financial year 2023 (from € 918.9 million in the
previous year). This development was due to the increase in non-cash adjustments relating to the financial
result and other non-cash expenses and income by 32.3% to € 485.7 million. In contrast, earnings before
taxes decreased by 13.3% to € 478.3 million.
PUMA Annual Report 2023
↗ Combined Management Report
243
↗ G.17 GROSS CASH FLOW (€ million)
As a result of the smaller increase in working capital compared to the previous year, there was a lower cash
outflow from the change in net working capital* of € - 129.2 million in financial year 2023, compared to a
cash outflow of € - 343.3 million in the previous year. The cash outflow from payments for income taxes
increased from € - 157.4 million in the previous year to € - 181.3 million in financial year 2023. On balance,
due to the improvement in gross cash flow and the lower cash outflows in connection with working capital,
there was a significant improvement in cash inflow from operating activities, which rose by 56.3% to
€ 653.6 million (from € 418.3 million).
NET CASH USED IN INVESTING ACTIVITIES
In the financial year 2023, cash outflow from investment activities increased from a total of € 240.8 million to
€ 284.6 million. The investments in fixed assets included in this figure increased from € 263.6 million in the
previous year to € 300.4 million in 2023 in line with our investment planning. The increase mainly related to
investments in our own retail stores, in our logistics infrastructure and in investment properties. In addition,
investments in the modernisation of the IT infrastructure continued to be made. The increase in capital
expenditures relates in particular to the North America and Latin America segments and the central area,
which is not allocated to the business segments.
* Net current assets include working capital line items plus current assets and liabilities, which are not part of the working
capital calculation. Current lease liabilities are not part of the net current assets.
704.8
522.8
821.2
918.9
964.1
2019
2020
2021
2022
2023
PUMA Annual Report 2023
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244
FREE CASH FLOW BEFORE ACQUISITIONS
The free cash flow before acquisitions is the balance of the cash inflows and outflows from operating and
investing activities. In addition, an adjustment is made for incoming and outgoing payments that relate to
the purchase or sale of shareholdings, where applicable. No acquisitions or disposals of investments were
made in 2022 and 2023.
Free cash flow before acquisitions improved from € 177.5 million in the previous year to € 369.0 million in the
financial year 2023. Free cash flow before acquisitions was 4.3% of sales compared to 2.1% in the previous year.
↗ G.18 FREE CASH FLOW (BEFORE ACQUISITIONS) (€ million)
NET CASH USED IN FINANCING ACTIVITIES
The net cash used in financing activities decreased overall from a cash outflow of € 476.4 million in the
previous year to a cash outflow of € 277.1 million in 2023. The decline in cash outflow was mainly due to
increased proceeds from taking on financial borrowings.
A dividend payment of € 122.8 million was distributed to the shareholders of PUMA SE for the financial year
2022. In the previous year, the dividend payment was € 107.7 million. The net cash used in financing activities
also included payouts to non-controlling interests totalling € 92.4 million in 2023 (previous year:
€ 73.3 million). Cash inflows from borrowings amounted to € 299.6 million, compared with cash inflows of
€ 17.9 million in the previous year. In the financial year 2023, payments made for the repayment of financial
borrowings totalled € 59.1 million (previous year: € 69.5 million). The cash outflows for the repayment of
leasing liabilities and related interest expenses included in the cash outflow from financing activities
increased from a total of € 228.7 million in the previous year to € 254.8 million in 2023.
As of 31 December 2023, PUMA had cash and cash equivalents of € 552.9 million, an increase of 19.4%
compared with the previous year (€ 463.1 million). The PUMA Group also had credit lines totalling
€ 1,552.8 million as of 31 December 2023 (previous year: € 1,271.0 million). Unutilised credit lines amounted
to € 986.1 million as at the balance sheet date, compared to € 943.7 million in the previous year.
331.2
276.0
276.2
177.5
369.0
2019
2020
2021
2022
2023
PUMA Annual Report 2023
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245
STATEMENT REGARDING THE BUSINESS DEVELOPMENT AND THE OVERALL
SITUATION OF THE GROUP
In financial year 2023, we were confronted with an increasingly difficult geopolitical and macroeconomic
market environment. The conflict in the Middle East, the war in Ukraine, persistent inflation and risks of
recession had a negative impact on the consumer sentiment and led to volatile retail demand. We therefore
considered 2023 to be a transitional year. In 2023, we continued to focus on overcoming the short-term
challenges without compromising the medium and long-term success of PUMA. Accordingly, we prioritised
sales growth and increasing market share over short-term profitability optimisation. Despite the difficult
market environment, we were able to further increase PUMA's sales based on our operating flexibility. In
the past financial year, we were also able to fully achieve our target in terms of operating result.
Our focus on the PUMA family is an important cornerstone of our corporate strategy. We want to offer our
employees an attractive working environment and diversity plays an important role in our corporate culture.
In 2023, PUMA received multiple awards for this successful strategy, including the "Top Employer Award" for
24 PUMA subsidiaries in the Europe, Asia/Pacific and Latin and North America regions. We can therefore
continue to call ourselves a "Global Top Employer". We were also named one of the "World's Best
Employers" by Forbes and a "Leader in Diversity" by the Financial Times, and awarded the "Great Place to
Work" seal in numerous countries. We were able to further optimise our processes by upgrading the
logistics centres in our main markets, and by expanding existing warehouses and opening new ones. We
also invested in improving our IT infrastructure, product development and ERP systems.
We were able to achieve currency-adjusted sales growth of 6.6% in the financial year 2023. Sales
development was affected by the significant devaluation of the Argentine peso, which had an extraordinary
impact in the fourth quarter and on the full-year 2023. Due to the extent and timing of these currency
effects, we were unable to fully compensate for all of the negative impacts at the end of the year.
Nevertheless, sales development was mainly in the high single-digit percentage range, in line with the
outlook for currency-adjusted sales growth. In addition to sales growth, the gross profit margin improved.
However, these positive effects were offset by the slightly stronger increase in other operating income and
expenses compared to sales.
Operating result (EBIT) of € 621.6 million in the past financial year was in line with our forecast of a range
between € 590 million and € 670 million. Despite the significant devaluation of the Argentine peso, we have
therefore fully achieved our target in terms of operating result in the past financial year. The devaluation of
the Argentine peso had a particularly negative effect on the financial result. Because of this, consolidated
net income amounted to € 304.9 million compared to € 353.5 million in the previous year. This corresponds
to a decrease of 13.7%. Earnings per share therefore decreased from € 2.36 in the previous year to € 2.03.
Under the given circumstances of a challenging macroeconomic environment worldwide and the
exceptional devaluation of the Argentine peso, we are very satisfied with the achievement of objectives in
financial year 2023. We believe that, despite the exceptional devaluation of the Argentine peso, the business
development of PUMA in 2023 reflects strong underlying operational development and strict cost discipline.
With regard to the consolidated balance sheet, we believe that PUMA continues to have a very solid capital
base. As of the balance sheet date, the PUMA Group's equity amounted to nearly € 2.6 billion and the equity
ratio was 38.9%.
Our measures to right-size inventories to an appropriate level contributed to limiting the increase in our
working capital in 2023. This is also reflected in the improvement in the cash flow from operating activities
and free cash flow. Our cash and cash equivalents amounted to € 552.9 million as of the balance sheet date.
In addition, the PUMA Group has unutilised credit lines totalling € 986.1 million at its disposal.
Consequently, the net assets, financial position and results of operations of the PUMA Group is overall very
solid at the time the combined management report was prepared. This enables the Management Board and
the Supervisory Board to propose to the Annual General Meeting on 22 May 2024 a dividend of € 0.82 per
share for the financial year 2023. This corresponds to a payout ratio of 40.3% in relation to the consolidated
PUMA Annual Report 2023
↗ Combined Management Report
246
net income according to IFRS. The higher payout ratio results from the strong improvement in free cash
flow and reflects the underlying positive operating business development. In general, PUMA's dividend
policy continues to provide for a payout of 25% to 35% of consolidated net income.
PUMA Annual Report 2023
↗ Combined Management Report
247
COMMENTS ON THE FINANCIAL STATEMENTS OF
PUMA SE IN ACCORDANCE WITH THE GERMAN
COMMERCIAL CODE (HGB)
The annual financial statements of PUMA SE are prepared in accordance with the rules of the German
Commercial Code (German GAAP, HGB), taking into account the SEAG (German SE Implementation Act) and
the German Stock Corporation Act (AktG). PUMA SE is the parent company of the PUMA Group. PUMA SE's
results are to a large extent influenced by the directly and indirectly held subsidiaries and shareholdings.
The business development of PUMA SE is essentially subject to the same risks and opportunities as the
PUMA Group. In addition, the management of earnings before taxes (EBT) is affected by changes in the
financial result.
PUMA SE is responsible for wholesale business in the DACH area, consisting of the home market of
Germany, Austria, and Switzerland. Furthermore, PUMA SE is also responsible for pan-European
distribution for individual key accounts and for sourcing products from European production countries, as
well as global licensing management. In addition, PUMA SE acts as a holding company within the PUMA
Group and is as such responsible for international product development, merchandising, international
marketing, the global areas of finance, operations and PUMA's strategic direction.
RESULTS OF OPERATIONS
↗ T.04 INCOME STATEMENT (GERMAN GAAP, HGB)
2023
2022
€ million
%
€ million
%
+/- %
Sales
1,243.7
100.0%
1,151.9
100.0%
8.0%
Other operating income
83.7
6.7%
84.0
7.3%
-0.4%
Cost of sales
-389.5
-31.3%
-316.4
-27.5%
23.1%
Personnel expenses
-130.8
-10.5%
-120.2
-10.4%
8.8%
Depreciation
-36.1
-2.9%
-36.8
-3.2%
-2.0%
Other operating expenses
-898.8
-72.3%
-816.3
-70.9%
10.1%
Total expenses
-1,455.2
-117.0%
-1,289.7
-112.0%
12.8%
Financial result
258.8
20.8%
189.5
16.5%
36.6%
Income before Tax
131.0
10.5%
135.8
11.8%
-3.5%
Income tax
-21.2
-1.7%
-18.8
-1.6%
12.9%
Net income
109.8
8.8%
117.0
10.2%
-6.2%
In the financial year 2023, sales increased by a total of 8.0% to € 1,243.7 million. The increase resulted both
from higher revenues from product sales and from higher commission income in the context of licence
management. Revenues from PUMA SE product sales rose by 15.8% to € 589.4 million (previous year:
€ 508.9 million). Royalty and commission income included in sales increased by 1.7% to € 599.3 million
PUMA Annual Report 2023
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248
(previous year: € 589.1 million). Other sales, which mainly consisted of recharges of costs to affiliated
companies, totalled € 55.0 million in 2023 (previous year: € 53.9 million).
Other operating income amounted to € 83.7 million in 2023 (previous year: € 84.0 million) and includes, in
particular, realised and unrealised gains from currency conversion related to the measurement of
receivables and liabilities in foreign currencies at the balance sheet date.
The total expenditure from material expenses, personnel expenses, depreciation and other operating
expenses increased by 12.8% to € 1,455.2 million compared to the previous year (previous year: a total of
€ 1,289.7 million). The increase in material expenses compared to the previous year was mainly due to the
increase in sales. The disproportionate growth in material expenses in comparison with sales resulted from
intra-group sales of goods to PUMA Benelux, which were carried out without a surcharge. Personnel
expenses increased due to a higher number of employees. Other operating expenses increased compared
with the previous year, mainly due to increased administrative, marketing and sales expenses.
The financial result increased, compared to the previous year, by 36.6% to € 258.8 million. The increase was
mainly due to higher profit transfer from affiliated companies. The interest result and the income from
dividends from investments in affiliated companies fell slightly. In addition, the investment in Borussia
Dortmund GmbH & Co. KGaA (BVB), Dortmund, was written down in the financial year due to an impairment
of € 0.5 million, which is expected to be permanent.
The increase in sales was offset by the increase in expenses, which is why earnings before income taxes
fell by 3.5% to € 131.0 million in 2023 (from € 135.8 million in the previous year). Taxes on income amounted
to € 21.2 million (previous year: € 18.8 million). Accordingly, PUMA SE's net income under the German
Commercial Code (German GAAP, HGB) decreased by 6.2% to € 109.8 million in the financial year 2023
(previous year: € 117.0 million).
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NET ASSETS
↗ T.05 BALANCE SHEET (GERMAN GAAP, HGB)
31.12.2023
31.12.2022
€ million
%
€ million
%
+/- %
Fixed Assets
1,648.9
63.3%
1,100.3
43.7%
49.9%
Inventory
85.7
3.3%
115.2
4.6%
-25.6%
Receivables and other current assets
680.9
26.1%
1,177.8
46.8%
-42.2%
Cash and cash equivalents
165.8
6.4%
96.5
3.8%
71.8%
Current Assets
932.4
35.8%
1,389.5
55.2%
-32.9%
Others
23.7
0.9%
25.2
1.0%
-5.9%
Total Assets
2,605.0
100.0%
2,515.1
100.0%
3.6%
Equity
925.8
35.5%
933.8
37.1%
-0.9%
Accruals/Provision
123.7
4.7%
141.9
5.6%
-12.8%
Liabilities
1,555.0
59.7%
1,438.9
57.2%
8.1%
Others
0.5
0.0%
0.5
0.0%
0.0%
Total Equity & Liabilities
2,605.0
100.0%
2,515.1
100.0%
3.6%
Overall, fixed assets increased by 49.9% to € 1,648.9 million in 2023. The increase is mainly the result of the
increase in shareholdings in the amount of € 521.9 million due to capital contributions to PUMA Sprint
GmbH, Germany, as well as further investments in IT.
The decline in inventories of current assets by 25.6% to € 85.7 million was mainly due to more conservative
purchasing behaviour, especially at the end of the year. The consolidation of inventories for Central Europe,
including Benelux, and the associated improvement in the management of purchases and sales supported
the positive development of inventories. Receivables and other assets decreased by a total of 42.2%
compared with the previous year to € 680.9 million. In particular, lower receivables from affiliated
companies contributed to this development, which resulted in particular from the capital contribution. Cash
and cash equivalents increased by 71.8% to € 165.8 million compared to the previous year, due to the cash
inflow from financing and investing activities.
On the liabilities side, equity fell slightly by 0.9% to € 925.8 million in 2023. In combination with the increase
of the balance sheet total due to higher liabilities, this led to a decline in the equity ratio, which was 35.5%
as at the balance sheet date of 31 December 2023 compared to 37.1% in the previous year.
Provisions decreased by 12.8% compared to the previous year to € 123.7 million. This development was
mainly due to lower provisions for outstanding invoices. Liabilities increased from € 1,438.9 million in the
previous year to € 1,555.0 million as of 31 December 2023. This increase primarily resulted from the
increased liabilities to banks due to the taking out of a promissory note loan and, in contrast, lower
liabilities to affiliated companies.
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FINANCIAL POSITION
↗ T.06 CASH FLOW STATEMENT (GERMAN GAAP, HGB)
2023
2022
€ million
€ million
+/- %
Cash flow used in/ from operating activities
-92.6
4.9
-
Cash flow from/ used in investing activities
66.3
-441.2
-
Free Cash Flow
-26.3
-436.3
-94.0%
Cash flow from financing activities
95.6
134.0
-28.7%
Change in cash and cash equivalents
69.3
-302.3
>-100%
Cash and cash equivalents at beginning of financial year
96.5
398.8
-75.8%
Cash and cash equivalents at year-end
165.8
96.5
71.8%
In financial year 2023, cash outflow from operating activities amounted to € 92.6 million, compared to a
cash inflow of € 4.9 million in the previous year. This development is mainly due to the decrease of
receivables from affiliated companies. In contrast, the reduction in inventories had a positive effect.
The cash inflow from investing activities in 2023 is mainly due to the reduction in cash pool and loan
receivables from affiliated companies. These are offset by cash outflows from investments in fixed assets.
Cash flow from financing activities showed a total cash inflow of € 95.6 million in 2023 (previous year:
€ 134.0 million). The cash inflow primarily resulted from the taking out of promissory note loans. In contrast,
reduced liabilities to affiliated companies and the payment of dividends to PUMA SE shareholders for
financial year 2022 in the amount of € 122.8 million led to a cash outflow.
OUTLOOK
In PUMA SE's financial statements under German Commercial Code (German GAAP, HGB), we expect an
increase in sales in the mid single-digit percentage range for the financial year 2024. Assuming dividends
from investments in affiliated companies at the previous year's level, we expect earnings before tax for the
financial year 2024 to be at the previous year's level.
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INFORMATION CONCERNING TAKEOVERS
The following information, valid 31 December 2023, is presented in accordance with Art. 9 p. 1 c) (ii) of the SE
Regulation in conjunction with Sections 289a, 315a German Commercial Code (HGB). Details under Sections
289a, 315a HGB which do not apply at PUMA SE are not mentioned.
Composition of the subscribed capital (Sections 289a [1][1], 315a [1][1] HGB))
On the balance sheet date, subscribed capital totaled € 150,824,640.00 and was divided into 150,824,640 no-
par value shares with a proportional amount in the statutory capital of € 1.00 per share. As of the balance
sheet date, the Company held 980,096 treasury shares.
Shareholdings exceeding 10% of the voting rights (Sections 289a [1][3], 315a [1][3] HGB)
As of 31 December 2023, there was one shareholding in PUMA SE that exceeded 10% of the voting rights. It
was held by the Pinault family via several companies controlled by them (ranked by size of stake held by the
Pinault family: Financière Pinault S.C.A., Artémis S.A.S. and Kering S.A.). The shareholding of Kering S.A. in
PUMA SE amounted to 1.47% of the share capital on 18 September 2023. The shareholding of Artémis S.A.S.
and Kering S.A. together amounted to 29.99% of the share capital on18 September 2023.
Statutory provisions and regulations of the Articles of Association on the appointment and
dismissal of the members of the Management Board and on amendments to the Articles of Association
(Sections 289a [1][6], 315a [1][6] HGB)
Regarding the appointment and dismissal of the members of the Management Board, reference is made to
the applicable statutory requirements of Section 84 German Stock Corporation Act (AktG). Moreover, Section
7[1] of PUMA SE’s Articles of Association stipulates that Management Board shall consist of two members in
the minimum; the Supervisory Board determines the number of members in the Management Board. The
Supervisory Board may appoint deputy members of the Management Board and appoint a member of the
Management Board as chairperson of the Management Board. Members of the Management Board may be
dismissed only for good cause, within the meaning of Section 84[3] of the AktG or if the employment
agreement is terminated, for which in each case a resolution must be adopted by the Supervisory Board
with a simple majority of the votes cast.
Amendments to the Articles of Association of the Company require a resolution by the Annual General
Meeting. Resolutions of the Annual General Meeting require a majority according to Art. 59 SE Regulation
and Sections 133[1], 179 [2] [1] AktG (i.e. a simple majority of votes and a majority of at least three quarters of
the share capital represented at the time the resolution is adopted). The Company has not made use of
Section 51 SEAG.
Authority of the Management Board to issue or repurchase shares (Sections 289a [1][7], 315a [1][7] HGB)
The authority of the Management Board to issue shares result from Section 4 of the Articles of Association
and from the statutory provisions:
AUTHORISED CAPITAL
By resolution of the Annual General Meeting on 5 May 2021, the Management Board is authorised, with
approval of the Supervisory Board, to increase the share capital of the Company by up to EUR 30,000,000.00
by issuing, once or several times, new no par-value bearer shares against contributions in cash and/or kind
until 4 May 2026 (Authorised Capital 2021). In case of capital increases against contributions in cash, the new
shares may be acquired by one or several banks, designated by the Management Board, subject to the
obligation to offer them to the shareholders for subscription (indirect pre-emption right).
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The shareholders shall generally be entitled to pre-emption rights. However, the Management Board shall
be authorised with approval of the Supervisory Board, to partially or completely exclude pre-emption rights
• to avoid peak amounts;
• in case of capital increases against contributions in cash if the pro-rated amount of the share capital
attributable to the new shares for which pre-emption rights have been excluded does not exceed 10% of
the share capital and the issue price of the newly created shares is not significantly lower than the
relevant exchange price for already listed shares of the same class, Section 186 (3) sentence 4 of the
German Stock Corporation Act (Aktiengesetz, AktG). The 10% limit of the share capital shall apply at the
time of the resolution on this authorisation by the Annual General Meeting as well as at the time of
exercise of the authorisation. Shares of the Company (i) which are issued or sold during the term of the
Authorised Capital 2021 excluding shareholders’ pre-emption rights directly or respectively applying
Section 186 (3) sentence 4 AktG or (ii) which are or can be issued to service option and convertible bonds
applying Section 186 (3) sentence 4 AktG while excluding shareholders’ pre-emption rights during the
term of the Authorised Capital 2021, shall be counted towards said limit of 10%;
• in case of capital increases against contributions in cash insofar as it is required to grant pre-emption
rights regarding the Company’s shares to holders of option or convertible bonds which have been or will
be issued by the Company or its direct or indirect subsidiaries to such an extent to which they would be
entitled after exercising option or conversion rights or fulfilling the conversion obligation as a
shareholder;
• in case of capital increases against contributions in kind for carrying out mergers or for the direct or
indirect acquisition of companies, participation in companies or parts of companies or other assets
including intellectual property rights and receivables against the Company or any companies controlled
by it in the sense of Section 17 AktG.
The total amount of shares issued or to be issued based upon this authorisation while excluding
shareholders’ pre-emption rights may neither exceed 10% of the share capital at the time of the
authorisation becoming effective nor at the time of exercising the authorisation; this limit must include all
shares which have been disposed of or issued or are to be issued during the term of this authorisation
based on other authorisations while excluding pre-emption rights or which are to be issued because of an
issue of option or convertible bonds during the term of this authorisation while excluding pre-emption
rights. The Management Board shall be entitled, with approval of the Supervisory Board, to determine the
remaining terms of the rights associated with the new shares as well as the conditions of the issuance of
shares. The Supervisory Board is entitled to adjust the respective version of the Company’s Articles of
Association with regard to the respective use of the Authorised Capital 2021 and after the expiration of the
authorisation period.
The Management Board of PUMA SE did not make use of the existing Authorised Capital in the current
reporting period.
CONDITIONAL CAPITAL
The Annual General Meeting of 11 May 2022 has authorised the Management Board until 10 May 2027 with
the approval of the Supervisory Board to issue once or several times, in whole or in part, and at the same
time in different tranches bearer and/or registered convertible bonds and/or options and profit-participation
rights and/or profit bonds or combinations thereof with or without maturity restrictions in the total nominal
amount of up to € 1,500,000,000.00.
The share capital is conditionally increased by up to € 15,082,464.00 by issue of up to 15,082,464 new no-par
value bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented
to the extent that conversion/option rights are exercised, or the conversion/option obligations are
performed, or tenders are carried out and to the extent that other forms of performance are not applied.
No use has been made of this authorisation to date.
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AUTHORISATION TO ACQUIRE TREASURY SHARES
The Annual General Meeting of 7 May 2020 resolved under agenda item 6 to authorise PUMA SE to acquire
and utilise treasury shares until 6 May 2025, including the authorisation to sell treasury shares while
excluding shareholders' pre-emption rights and the authorisation to offer and transfer treasury shares to
third parties against non-cash consideration. The authorisation from 2020 was extended by resolution of the
Annual General Meeting on 5 May 2021 to the effect that the Supervisory Board was authorised to issue
treasury shares to members of the Management Board as a component of Management Board
remuneration, while excluding shareholders' pre-emption rights. In addition, the authorisation from 2020
was extended by resolution of the Annual General Meeting on 11 May 2022 to the effect that the Management
Board was authorised to issue shares acquired, excluding shareholders' subscription rights, in connection
with share-based payment or employee share programs of the Company or its affiliated companies to
persons who are or were employed by the Company or one of its affiliated companies or are a member of
the management of a company affiliated with the Company. In all other aspects, the authorisation from 2020
remained unchanged.
No use has been made of the authorisation to acquire treasury shares in the reporting period.
Significant agreements of the Company which are subject to a change of control as a result of a takeover
bid and the resulting effects (Section 289a [1][8], 315a [1][8] HGB)
Material financing agreements of PUMA SE with its creditors contain the standard change-of-control
clauses. In the case of change of control the creditor is entitled to termination and early calling-in of any
outstanding amounts.
For more details, please refer to the relevant disclosures in chapter 17 of the Notes to the Consolidated
Financial Statements.
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CORPORATE GOVERNANCE STATEMENT IN
ACCORDANCE WITH SECTION 289F AND 315D HGB
┌
The corporate governance statement (in accordance with Sections 289f and 315d HGB) includes the
declaration of compliance, information on corporate governance practices and a description of the working
methods of the Management Board and Supervisory Board. It is available at
https://about.puma.com/en/investor-relations/corporate-governance.
└
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RISK AND OPPORTUNITY REPORT
PUMA is continuously exposed to opportunities and risks in the competitive, fast-paced and international
sport and lifestyle industry. The risk strategy is therefore to take business risks in a calculated manner in
order to implement the corporate strategy with all its opportunities. For this purpose, effective risk and
opportunity management is required so that opportunities can be recognised and utilised, and risks can be
identified and managed at an early stage. We define risks as potential future developments or events that
may lead to a negative deviation from targets for the company (see the "Risk Management System" section).
Similarly, opportunities are potential future developments or events that may result in a positive deviation
from targets.
RISK MANAGEMENT SYSTEM
PUMA takes a conscious and controlled approach to risks in order to achieve the company's goals. The aim
of the risk management system is to identify and manage at an early-stage material risks or risks that could
even jeopardise the company's existence and thus support the achievement of the company's objectives. In
addition, compliance with the related laws, regulations and standards must be ensured, as well as
transparency in relation to the risk situation from the perspective of partners such as customers, suppliers
and investors. Therefore, PUMA has established an appropriate and effective risk management organisation
which is able to identify risks at an early stage and manage them in accordance with the corporate strategy
and promote risk awareness within the PUMA Group to facilitate risk-based decisions. As part of the
organisation, risks are looked at Group-wide, unless explicitly stated to the contrary. As in the previous year,
PUMA's risk management system is based on a comprehensive, interactive, and management-oriented
approach to risk that is integrated into the company's organisation and is based on the globally recognised
COSO standard (Committee of Sponsoring Organisations of the Treadway Commission). Opportunity
management is not part of the risk management system and is the responsibility of operational
management teams in the respective regions, markets, and departments (see the "Opportunities" section).
The Management Board of PUMA SE bears overall responsibility for the risk management system in
accordance with Section 91(3) AktG. The Management Board regularly updates the Audit Committee of the
Supervisory Board of PUMA SE. In addition, pursuant to Section 107(4), the Audit Committee has a direct
right to information from the operational management departments. The Risk Management Committee,
which consists of the PUMA SE Management Board and selected managers, is responsible for the design,
review, and adaptation of the risk management system. For the operational coordination of the risk
management process and support of the risk officers, the risk management function of the Group Internal
Audit, Risk Management & Internal Control department has been assigned to prepare the regular risk
reporting to the Risk Management Committee. The responsibilities, tasks and processes of the risk
management system are defined in PUMA’s enterprise risk guidelines. The structure and design of the risk
management system are as follows:
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↗ G.19 RISK MANAGEMENT SYSTEM
The risk owners are mainly the managers of the functional areas and the managing directors of the
subsidiaries. Risks are identified company-wide by performing a bottom-up analysis within the risk owner's
area of responsibility. These risks are regularly reported to the risk management function and/or the local
monitoring bodies in structured interviews that take place every six months or during the year using
established internal reporting channels. As a part of the risk culture at PUMA, general information for risk
management as well as training materials are made available for all employees.
The risks are evaluated and assessed in terms of probability of occurrence and extent of damage using
quantitative criteria with the help of a systematic methodology. The quantitative criteria are represented in
the form of risk classification ranges on a four-level scale: Low, Medium, Significant and High. While the
risk assessment of the probability of occurrence is measured as a percentage rate, the extent of damage is
based on the planned operating result for the upcoming financial year. We follow a net risk approach,
addressing the risks that remain after existing control measures have been implemented. The resulting risk
assessments are presented as an aggregated risk group ("overall risk situation"). Thus, for the materiality
assessment, the quantified risks are combined from their extent of damage and probability of occurrence
and are classified in a comprehensive risk matrix regarding their significance level (“Low”, “Moderate”,
“Material” and “Critical”) for internal monitoring and to assess their viability (see graphic G.21).
For example, a risk can be allocated within the most critical range, which may also include risks that could
even jeopardise the company's existence, in the case that its assessment reflects a combination of highest
bandwidth for extent of damage (“High > € 50 million”) and probability (“High > 50%”). The overview of the
risk groups is presented in table T.7, summarised in the order of their relative importance and their change
during the year.
Supervisory Board / Audit Committee
Management Board / Risk Management Committee
Risk Strategy
Internal Audit
Monitoring
Risk Owner
Subsidiaries
Functions
Identification
Management
Assessment
Reporting
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↗ G.20 RISK MATRIX
Regular risk identification and assessment is carried out by the risk management function every six months
with all major functional areas. The risks recorded and assessed are also reviewed with a top-down
approach by the Risk Management Committee. This ensures that adequate consideration is given to
interdependencies and the overall risk situation.
The risk owners are responsible for the operational management of identified risks. Risks can be managed
by avoiding, reducing, diversifying, or transferring the risk to achieve the targeted and acceptable residual
risk. Within the reporting process, material risks or those which could even jeopardise the company’s
existence are coordinated with and managed by the Risk Management Committee or the Management
Board, considering the risk-bearing capacity, which is also based on the planned operating result.
The methodology and structure of the risk management system are continuously monitored in terms of
their appropriateness and effectiveness and adapted or improved when required. This is carried out on the
one hand by the Internal Audit department, as an independent audit body within the PUMA Group, and on
the other hand through the utilisation of the results of the auditor of PUMA SE, which assesses the early
risk identification system annually for its fundamental suitability to be able to identify risks that endanger
the company’s existence at an early stage.
Likelihood in %
low
moderate
material
critical
high
significant
medium
low
>50
≤50 ≥20
<20 ≥10
<10
Significance level
Impact in € million
≥5 <20
medium
≥20 <50
significant
≥2 <5
low
≥50
high
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RISKS
The following explanations of risk groups are presented based on their relative importance from the Group
perspective for the financial year 2023.
MACROECONOMIC DEVELOPMENTS
As an internationally operating enterprise, PUMA is exposed to challenges and uncertainties that affect the
global economy and the associated risks may have an impact on our sales and sourcing markets. For
example, macroeconomic risks because of economic recessions, changes in interest rates, or inflation and
cost pressures, might have an impact on consumer behavior, production costs, sales, and profit margins.
Likewise, global events such as political changes, social developments, geopolitical tensions, and natural
disasters can disrupt supply chain activities or affect consumer sentiment, are also reflected in legal and
macroeconomic conditions.
In 2023, the macroeconomic and geopolitical environment remain challenging. The recent conflict in Middle
East, the war in Ukraine, persistent inflation, and the risks of recession weights on consumer sentiment,
resulting in volatile demand in the retail sector. The pattern of China’s economic recovery after COVID-19
remains uncertain and competition with both local and global brands remains high.
Overall, we manage these challenges by having close alignment and communication with regions and key
markets to follow up and deal with critical developments affecting PUMA business environment (e.g., price
increases, supply chain interruptions, geopolitical tensions) and develop alternative scenarios to analyse
possible occurrence of events. Moreover, the Management Board is regularly updated about country and
macroeconomic developments and defines action plans to quickly adapt to changing economic conditions.
BUSINESS PARTNERS
As an enterprise with global operations, managing sourcing and supply chain related risks is of key
importance for PUMA. Most of our PUMA products are produced in Asia in countries like China, Vietnam,
Cambodia, Bangladesh, Indonesia and India. In addition to the challenges, production in these countries
continues to be associated with significant risks for us. These risks arise, for example, from changes in
sourcing, wage and logistic costs, supply bottlenecks for raw materials or components, and quality issues,
as well as from the possibility of overdependence on individual suppliers. Sourcing and the supply chain
must also react to risks, such as changes in duties and tariffs as well as trade restrictions and government
requirements. The transport of products to the distribution countries is also exposed to the risk of delays
and failures by warehouse and logistics service providers due to extraordinary events and/or human or
system error.
To mitigate business partners related risks, we have implemented a functional framework for sourcing and
supply chain processes. Our sourcing portfolio is regularly reviewed and adjusted to avoid creating a
dependence on individual suppliers and sourcing markets. Generally, long-term master framework
agreements are concerted to secure the required production capacities for the future. Regular
communication with PUMA entities allows us to anticipate any price increase and strengthen our forecast
activities. A quality control process and the direct and partnership-like collaboration with suppliers should
permanently secure the quality and availability of our products. Moreover, we continuously analyse political,
economic, and legal framework conditions and have further enhanced our close cooperation with our
logistics partners to be able to react to changes in the supply chain early on and to continuously strengthen
the supply chain. The collaboration with warehouse and logistics service providers is accordingly secured by
selection processes, consistent contractual terms, and permanent monitoring of relevant indicators.
In 2023 global sourcing markets normalised because of the end of COVID-related restrictions: However,
there are continued supply chain and sourcing challenges regarding rising costs and the potential threat of
a larger recession that could still cause disruptions and delays in the operations. To diminish these
challenges, we have further intensified the cooperation with our suppliers and logistics partners to be able
to act flexibly and base our actions around finding the right solutions.
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CURRENCY RISKS
As a group that operates internationally, PUMA is exposed to transactional foreign currency risks. The
currency risks exist to the extent that the exchange rates of currencies in which purchase and sales
transactions as well as lending transactions and receivables are carried out fluctuate against the functional
currency of the PUMA Group - the euro.
PUMA's biggest sourcing market is Asia, where most payments are settled in US dollars (USD), while sales
of the PUMA Group are mostly invoiced in other currencies. PUMA manages currency risk in accordance
with internal guidelines. Material risks are hedged, in accordance with the Group directive, up to a hedging
ratio of 95% of the estimated foreign currency risks from expected purchase and sales transactions over the
next 12 to 15 months. Forward exchange contracts and currency options, usually with a term of around 12
months from the reporting date, are used to hedge the foreign currency risk. For significant risks that are
subject to large hedging costs, high hedging ratios can only be achieved over shorter terms.
To hedge signed or pending contracts against currency risk, PUMA only concludes currency forward
contracts and currency options on customary market terms with reputable international financial
institutions. As of the end of 2023, the net requirements for the 2024 planning period were adequately
hedged against currency effects, if possible.
Foreign exchange risks may also arise from intra-group loans granted for financing purposes. Currency
swaps and currency forward transactions are used to hedge currency risks when converting intra-group
loans denominated in foreign currencies into the functional currencies of the group companies (EUR).
In addition, as an international group with its own presence in a large number of countries, PUMA is also
exposed to translation risks. These arise in the course of consolidation when individual financial statements
of foreign subsidiaries that do not prepare their accounts in euros are translated into the PUMA Group's
functional currency, the euro.
In countries with high interest and inflation rates, both transaction risks and translation risks can arise to a
considerable extent. PUMA does not hedge these risks, as the hedging costs in high-interest countries -
insofar as hedging is possible at all - in some cases significantly exceed the benefits of hedging. The
negative effects of currency and inflation are generally compensated for by adjusting the prices of products
in the respective market.
In order to disclose market risks, IFRS 7 requires sensitivity analysis that show the effects of hypothetical
changes in relevant risk variables on earnings and equity. The periodic effects are determined by relating
the hypothetical changes caused by the risk variables to the balance of the financial instruments held as of
the balance sheet date. The underlying assumption is that the balance as of the balance sheet date is
representative for the entire year.
Currency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a
currency which differs from the functional currency and are monetary in nature. Differences resulting from
the conversion of the individual financial statements to the group currency are not taken into account. All
non-functional currencies in which the Group employs financial instruments are generally considered to be
relevant risk variables.
The currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies.
This also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also
reassessed as part of the sensitivity analysis. It is assumed that all other influencing factors, including
interest rates and raw material prices, remain constant. The effects of the forecasted operating cash flows
are also ignored.
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Currency forward contracts, used to hedge against payment fluctuations caused by exchange rates, are part
of an effective cash-flow hedging relationship pursuant to IAS 39. Changes in the exchange rate of the
currencies underlying these contracts have an effect on the hedge reserve in equity and on the fair value of
these hedging contracts.
PANDEMIC
PUMA first identified the COVID-19 pandemic as a new risk in the financial year 2020 and accordingly estab-
lished the risk category "Pandemic”. Risks related to a pandemic event such as supply chain disruptions,
economic and financial strains, lockdowns, retail store closings, cancellations of sport events or social
restrictions could lead to severe business disruptions, reduced consumption, loss of sales, or liquidity
shortfalls. For financial year 2023, the negative impacts of the pandemic have diminished as countries and
regions ended pandemic-related restrictions and economic and life activities are normalising. In principle,
uncertainties arise in relation to new variants that could lead to possible lockdowns or restrictions.
To mitigate pandemic-related risks, different strategic approaches have been established to ensure and
prioritise the health and safety of our employees and customers, as well as continuous monitoring of the
situation and possible restrictions. There is continuous monitoring of the latest economic events and close
alignment with our regions and key markets to manage critical developments and adapt to market
conditions. Close cooperation with partners and suppliers is essential to implement and monitor
contingency strategies. In addition to Direct-to-Consumer business, the e-commerce business and PUMA
App are an essential part of our distribution structure.
PRODUCT & MARKET ENVIRONMENT
The sport and lifestyle markets are defined by intense competition, constant innovation, and changing
consumer preferences. PUMA faces the challenge of continuously innovating and differentiating its product
offering to capture consumer interest and gain and edge over its competitors. Product and market
environment risks could arise from a non-anticipated or late response to consumer demand within the fast-
moving lifestyle and sports markets. Constant changes in consumer lifestyle/sports trends and long product
lifecycles bear the risk of creating products that are not relevant to our consumers, launching them at the
wrong time, launching them with the wrong marketing campaign or placing them in the wrong distribution
channels. As a result, these risks could lead to a loss in market share, sales shortfalls, and lower brand
attractiveness. Media reports about PUMA also play a key role in brand image. For example, reports about
the infringement of laws or internal/external requirements, product recalls and exposure on social media
as well as reports about workforce diversity and tolerance can cause significant damage to brand image and
ultimately result in the loss of sales and profit.
To mitigate these risks, we conduct market research and systemic monitoring of market environment for
early recognition and taking advantage of relevant consumer trends. Targeted investments in product design
and product development are to ensure that the characteristic PUMA design of the entire product range is
consistent with the overall brand strategy ("Forever Faster"), thereby creating a unique level of brand
recognition. Accordingly, we have set the guiding principle that "We want to become the fastest sports brand
in the world" to underline the company's long-term direction and strategy. The "Forever Faster" brand
promise does not just stand for PUMA's product range as a sports and lifestyle company, but also applies to
all company processes. Brand image is particularly strengthened through cooperation with brand
ambassadors who embody the core of the brand and PUMA's brand values ("brave," "confident,"
"determined" and "joyful") and have a large potential for influencing PUMA's target group. We additionally
counter this risk through careful press, social media, and public relations work as well as by monitoring the
press and social media environment.
PROJECTS
The strategic program portfolio of PUMA contains important and critical projects to ensure that the flow of
goods and information is sufficiently supported by modern warehouse, logistics and IT infrastructure. These
include, for example, the implementation of IT systems to enhance operations, such as centralised systems
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or e-commerce platforms and systems in the warehouse and supply chain. Risk associated with projects
include ineffective change management, lack of resources, high costs, exceeding budget, overrun time
frames, non-acceptance of users due to weak communication, increase vulnerability to potential data
breaches and disruption to business processes.
To manage project-related risks effectively, PUMA has established group and regional project teams as well
as policies to manage the roll-out of new and existing projects that have a significant impact on the core
value chain. In addition, as part of project management practices, continuous alignment with stakeholders
and steering meetings to monitor, provide support and guidance on strategic projects are implemented to
ensure its execution is in line with pre-defined objectives and milestones such as time frames and budgets.
INFORMATION TECHNOLOGY
The ongoing digitalisation of business environments brings new challenges to PUMA in the field of
information technology which – in case of incidents - may have an impact on our operations, data security
and privacy, as well as overall performance. Key business procedures and processes such as supply chain
management, e-commerce, and financial reporting depend on digital services, infrastructure, and their
unimpaired availability. Interruptions of service availability can disrupt essential processes and cause
operational problems. Moreover, information security is of outmost importance for PUMA, the risk of a data
breach might lead to financial loss, brand damage, legal claims, and loss of customer trust.
To mitigate these risks, we continuously carry out technical and organisational measures. Key business
procedures, processes and infrastructure on information technology and security are established based on
best -practice frameworks, regularly updated and controlled. These processes are subject to internal and
external audits to ensure their reliability and the appropriateness of control mechanisms. Appropriate
procedures and guidelines related to IT-incident response are in place and updated accordingly. Moreover,
PUMA has an Information Security Committee which consistently updates the Management Board on the
latest status and developments. In addition, trainings and information campaigns are conducted regularly to
increase awareness and knowledge on information security related issues.
DISTRIBUTION STRUCTURE
PUMA relies on different distribution channels including the Wholesale business with our retail partners
and the Direct-to-Consumer (DTC) business with our PUMA-owned and operated (O&O) retail stores and e-
commerce platforms. This diversified distribution mix enables PUMA to reduce its dependency on individual
distribution channels and/or retail partners.
The wholesale business represents the largest share of sales overall and is characterised by strong
partnerships with all our retail partners. The company’s DTC business has a complementary role and is
intended to ensure a better and more comprehensive presentation of PUMA products in a controlled brand
environment, direct interaction with our end consumers and a higher gross profit margin.
In the wholesale business, growing retailers, including those offering their own brands, and direct
competitors pose the risk of intensified competition for market shares, price pressures or reduced profit
margins. Consumer purchase behavior is also changing, focusing more on e-commerce and a combination
of stationary and digital trade. This requires continuous adjustment of the distribution structure.
Distribution through our O&O retail stores and e-commerce platforms is, however, also associated with
various risks including the required investments in expansion and infrastructure, setting up and
refurbishing stores, higher fixed costs, and leases with long-term lease obligations. This can have an
adverse impact on profitability in the event of a business decline.
To avoid risks, we carry out permanent monitoring of distribution channels and regular reporting by
Controlling and the dedicated functions. We maintain strong collaborations with all our retail partners in line
with our wholesale-focused strategy. The company's reporting and controlling system allows us to detect
negative trends early on, and to take the countermeasures required to manage individual stores and overall
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to monitor the evolution of the distribution landscape. A detailed location and profitability analysis is carried
out in our DTC business before making any investment decision. In e-commerce, global activities are
harmonised and investments in IT systems are carried out to further improve the shopping experience for our
consumers and to drive conversion. This includes the continued global roll-out of the PUMA Shopping App.
SUSTAINABILITY
Sustainability topics are highly important for PUMA specially in sourcing as well as along the entire value
chain. Natural resources crises and the resulting increase in customer requirements regarding
sustainability have led to a stronger ecological focus in our product range, both at our own locations and
along the production and supply chain. A more efficient use of resources, reduction in greenhouse gas
emissions and compliance with environmental standards as well as the increased use of environmentally
preferred materials and environmentally friendly chemicals in production are crucial parts of our
sustainability strategy. The risk of not implementing an effective sustainability approach to our products and
along the supply chain could lead to serious brand damage, loss of customer loyalty, supply chain
disruptions, increased costs, and non-compliance with environmental regulations.
PUMA’s efforts towards managing sustainability risks and efficient use of resources are reflected in the
comprehensive “Forever Better” strategy which defines 10 target areas to improve sustainability
performance: Human Rights, Climate Action, Circularity, Products, Water and Air, Biodiversity, Plastics and
the Oceans, Chemicals, Health & Safety as well as Fair Income. For each of these target areas, which are
aligned to the UN Sustainable Development Goals (SDGs), there are measurable targets and KPI’s which are
regularly monitored and reported to Board Members, Supervisory Board, and stakeholders. Additionally,
risk assessments and audits are performed to ensure our suppliers follow environmental standards.
PUMA’s efforts to engage with stakeholder dialog through different events like “Conference of the People”
or "Voices of a RE:GENERATION" allowed to discuss sustainability topics with generation Z representatives,
industry peers, experts and activists.
PUMA's sustainability report (the Non-financial Report) for the financial year 2023 is published together
with the combined management report and can be accessed at the following page on our website:
https://about.PUMA.com/en/investor-relations/financial-reports.
MONITORING OF WORKING CONDITIONS
An important aspect of corporate responsibility is maintaining and monitoring good working conditions and
compliance with human rights in PUMA’s own operations and throughout the supply chain to ensure that
employee’s rights and well-being are protected. This risk considers the event of human rights violation or
social and environmental non-compliance (e.g., child labor, excessive overtime, forced labor, sexual
harassment, gender-based violence, unsafe work environment, fair income) in PUMA’s own business and its
supply chain.
To mitigate these risks, PUMA has implemented clear policies that are aligned with all relevant legislation
on sustainability like the German Supply Chain Act, United Nations’ (UN) Declaration of Human Rights, the
UN Guiding Principles (UNGPs) on Business and Human Rights, the International Labor Organisation’s Core
Labor Conventions, and the ten principles of the UN Global Compact (UNGC). Regular audits and human
rights/environmental risk assessments are conducted at the corporate and the supply chain level to
evaluate compliance with applicable standards. Stakeholder dialogue with NGOs and partnerships with
organisations (e.g., Fair Labor Association) enable transparent communication channels to address
concerns and share best practices regarding human rights and environmental standards.
PUMA’s Sustainability Report (the Non-financial Report) for the financial year 2023 is available here:
https://about.PUMA.com/en/investor-relations/financial-reports.
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LEGAL
As an internationally operating group, PUMA is exposed to various legal risks. These risks could arise from
Intellectual Property (IP) infringements that involve using a trademark, patent or copyright without proper
authorisation and resulting in legal disputes, brand damage or loss of exclusivity rights. Contractual risks or
risks that a third party could assert claims and litigations for infringements of its trademark rights are also
considered. Counterfeit products are often of inferior quality and may not meet safety standards which can
undermine the PUMA’s brand reputation, reduce consumer trust and lead to legal disputes.
The continuous monitoring of contractual obligations and the integration of internal and external legal
experts in contractual matters should ensure that any legal risks reduced to the minimum. The legal team
is responsible for protecting our intellectual property in order to act against brand piracy. This not only
ensures that we have a strong global portfolio of property rights, such as trademarks, designs and patents,
but also works closely with customs, police and other authorities and provides input to legislators regarding
the implementation of effective measures to protect intellectual property.
COMPLIANCE
As an international group, PUMA is exposed to compliance risks resulting from the potential non-adherence
to corporate governance rules, legal and regulatory requirements, or industry standards. These risks
include fraud, conflict of interest, money laundering, antitrust law, corruption as well as deliberate
misrepresentations in financial reporting which may lead to significant penalties, legal consequences,
reputational damage, and disruption to business operations.
PUMA has implemented various tools to manage such risks. This includes a functioning compliance
management system, the internal control system, group controlling and the internal audit departments to
prevent, detect and sanction compliance-related topics at an early stage. Through the compliance
management system, clear roles and responsibilities are assigned to group and local compliance functions.
To ensure PUMA employees comply with PUMA ‘s values there are ongoing trainings, communication and
awareness campaigns for policies and procedures. PUMA employees also have access to a whistleblowing
system for reporting illegal or unethical behavior.
TAX
As a global company PUMA is exposed to a complex tax environment in which main challenges arise from
cross-border transactions involving intercompany transfer of goods, services, and intellectual property. To
minimise tax exposure, it is essential to optimise tax planning activities and ensure compliance with local
and international laws and reporting requirements. In addition to compliance with national tax regulations
to which the individual group companies are subject, there are increasing risks related to intra-group
transfer pricing, which must be applied for various internal business transactions in accordance with the
arm's length principle between related parties. Different countries have implemented laws and guidelines
for international taxes in alignment with the Organisation for Economic Co-operation and Development
(OECD) recommendations to standardise requirements for transfer-pricing documentation and update
global tax policy.
In order to manage tax-related risks in an effective manner, PUMA established a solid tax governance
framework. An adequate tax organisation with internal and external tax experts to comply with the relevant
tax regulations and to be able to react to changes in the constantly changing tax environment. For the
group-internal transfer pricing, corresponding documentation and policies are in place and aligned with
international and national requirements and standards. There are guidelines and specifications for
determining transfer prices for intra-group transactions that are common for foreign companies, which
comply with the applicable internal procedural rules and are binding for employees who act on behalf of the
group. By means of internal tax reporting, external and internal tax experts can control and monitor tax
developments at PUMA on an ongoing basis. Training and awareness activities are performed on a regular
basis to ensure relevant stakeholders are informed about current tax developments and acquire further
expertise for tax treatment activities. Both, the Management Board, and the Supervisory Board, are
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regularly informed about ongoing tax developments at PUMA to identify and avoid tax-related risks as early
as possible.
PERSONNEL DEPARTMENT
The creative potential, commitment and performance of PUMA employees are essential factors for
achieving our strategic and financial targets. Personnel-related risks involve the management of workforce,
talent acquisition and retention, employee engagement and compliance with employment laws. Any
shortfall in staffing may lead to inadequate performance of tasks and have a negative impact on operational
efficiency. In addition, there is still strong global competition for highly qualified personnel. Therefore, loss
of key personnel and difficulties in identifying, attracting, and retaining key talent could lead to loss of know-
how and decrease business performance. Likewise, non-compliance to health and safety laws and
regulations could lead to accidents, penalties, employee dissatisfaction, business interruptions and
reputational damage at Group level.
Through our human resources strategy, we seek to encourage independent thinking and action, which are
key in an open corporate culture with flat hierarchies on a long-term and sustainable basis. To achieve this
goal, a control process is in place to detect and assess human-resource risks. PUMA pays particular
attention to talent management, identifying key positions and talent, ensuring this talent is trained and
positioned optimally, and succession planning. We have also instituted additional national and global
regulations and guidelines to ensure compliance with legal provisions and safeguard the health and safety
of our employees. Moreover, employee surveys are conducted to obtain feedback and measure employee
engagement (e.g., “Great Place to Work”, “Diversity Leader”). During 2023, PUMA received several awards
which recognised the ongoing efforts to create a diverse, inclusive, and equal workforce (e.g., “Top
Employer”). We will continue to make targeted investments in the human resource needs of functions or
regions to meet the future requirements of our corporate strategy.
LIQUIDITY AND INTEREST RATE RISKS
PUMA continually analyses short-term capital requirements by rolling cash flow planning at the level of the
individual companies in coordination with the central Treasury department. In order to ensure the
company's solvency, financial flexibility and a strategic liquidity buffer, PUMA maintains, for example, a
liquidity reserve in the form of cash and confirmed credit facilities. In this respect, as of December 31, 2023,
the PUMA Group had unused credit lines totaling € 896.1 million.
Medium and long-term funding requirements that cannot be directly covered by net cash from operating
activities are financed by taking out medium and long-term loans. For this purpose, various promissory note
loans were issued in several tranches with fixed and variable coupons and different remaining terms. The
utilised promissory note loans amount to a total of € 551.5 million as of December 31, 2023 and have a
remaining term of between one and five years.
Changes in market interest rates around the world have an impact on future interest payments for variable
interest liabilities. As PUMA only has a limited amount of variable interest-bearing liabilities, interest rate
hedging instruments are used to a limited extent.
DEFAULT RISKS
Due to its business activities, PUMA is exposed to default risk on trade receivables. These risks consider
delayed payments and losses of accounts receivables (e.g., default of a customer) as well as default risks
from counterparty's other contractual financial obligations (e.g., bank deposits, derivative financial
instruments). This could lead to bad debt expenses and reduced liquidity and could have a negative impact
on cash flow and profitability, as trade receivables are one of the most significant financial assets.
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The default risk is managed by continuously monitoring outstanding receivables and recognising
impairment losses, where appropriate. The default risk is limited, if possible, by credit insurance. The
maximum default risk is reflected by the carrying amounts of the financial assets recognised in the balance
sheet. In addition, default risks also arise to a lesser extent from other contractual financial obligations of
the counterparty, such as bank balances and derivative financial instruments.
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RISK OVERVIEW TABLE
The following table summarises the risk groups described above based on their relative importance
(significance level) and any changes during the year:
↗ T.07 OVERVIEW OF RISK GROUPS
Risk Groups
Classification
Description
Significance level
Change compared
to previous year
Macroeconomic
Developments
Strategic
e.g., economic development, political
situation, geopolitical tensions
Critical
↗
Business Partners
Operational
e.g., raw material bottlenecks, supply
chain disruptions, sourcing and
logistic costs, quality problems
Critical
→
Currency Risk
Financial
e.g., exchange rate fluctuations
Critical
↗
Pandemic
Strategic
e.g., store closures, supply problems,
health of employees and customers
Critical
↘
Product and Market
Environment
Strategic
e.g., trends, customer requirements,
brand image, media reports
Material
→
Projects
Strategic
e.g., IT infrastructure, construction
projects
Material
→
Information
Technology
Operational
e.g., cyberattacks, network and
system failures
Material
→
Distribution Structure
Strategic
e.g., change in the distribution
landscape
Material
→
Sustainability
Regulatory
e.g., climate change, environmental
standards
Material
→
Working Conditions
Regulatory
e.g., labor law, human rights, German
Supply Chain Due Diligence Act
Material
→
Legal
Regulatory
e.g., trademark law, patent law,
counterfeit products
Material
→
Compliance
Regulatory
e.g., fraud, corruption
Material
→
Tax
Financial
e.g., transfer prices
Material
→
Personnel Department Operational
e.g., key positions, employee
retention, health & safety
Moderate
→
Liquidity and Interest
Rate
Financial
e.g., cash, credit lines, custody fees,
interest rate developments
Moderate
→
Default Risk
Financial
e.g., payment claims against
customers
Moderate
→
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OPPORTUNITIES
Opportunities should be identified by PUMA at an early stage, assessed and - where possible - materialised.
The operational management teams in the markets and departments are responsible for opportunity
management. In course of the budget- and mid-term process, the identified opportunities are incorporated
into PUMA’s overall planning approach. PUMA has identified and defined multiple key opportunity
categories for the current planning period and beyond.
PUMA is operating in an external environment that is characterised by increasing geo-political risks,
continued macro-economic headwinds, a muted consumer sentiment and a strong volatility in foreign
exchange rates. In addition, the speed of recovery in the important U.S. and Chinese markets remains
uncertain. In response, PUMA will continue to focus on managing short-term challenges without
compromising the mid- and long-term momentum of the brand, always prioritising sales growth and
market share gains over short-term profitability. Therefore, PUMA will continue to focus on being the best
partner to its wholesale accounts and end consumer, providing them with the best possible service.
Within our corporate strategy, we have defined the following six strategic priorities which offer significant
opportunities: elevate the brand, enhance product excellence, improve distribution quality, focus on people
first, digitalise our infrastructure and evolve sustainability. Within this overarching framework, we’re
currently placing a special focus on brand elevation, winning in the important U.S. market, and accelerating
our rebound in China. PUMA will continue to invest into the brand and sees significant opportunities to
increase market shares in all key markets. Supported by new landmark partnerships with brand
ambassadors such as Rihanna and A$AP Rocky, our lifestyle products continue to enjoy strong relevance
and demand across all age groups and regions. We have also made great progress in performance in recent
years and have significantly improved our market position across football, running, fitness, basketball, golf,
and motorsport. PUMA's product range is being continuously optimised and further developed across all
categories with a special emphasis on innovation and franchise management. In 2024, multiple
international sport events such as the UEFA Euro Cup in Germany, the Olympic & Paralympic Games in
Paris, and the Copa America in the U.S. will give us a platform to underline our performance credibility and
to increase brand heat and visibility. The major global interest in these events and sports in general will
further support the growth of the sporting goods industry. We are also seeing a continued trend toward a
healthier lifestyle, greater sports participation, and more casual clothing, which opens corresponding
opportunities for our industry. Meaningful marketing campaigns supported by relevant brand ambassadors
in all major markets are essential to anchor PUMA deeply in the hearts and minds of our consumers and
create brand relevancy and loyalty. To further elevate the brand and strengthen our consumer connection,
PUMA will also launch a big brand campaign in 2024.
In terms of distribution, PUMA will continue to focus on the wholesale channel. The strong partnerships
with our wholesale accounts offer opportunities for future market share gains and business growth.
However, we also see significant opportunities in our Direct-to-Consumer (DTC) business with a special
emphasis on PUMA’s e-commerce channels. Since 2022, we’re rolling out a dedicated PUMA shopping app
which is showing strong results and significantly better KPIs compared to our traditional puma.com e-
commerce channels. The PUMA shopping app will be expanded to other markets in the coming years and
will open further opportunities regarding customer loyalty and sales growth. New store formats and
improvements to the overall shopping experience in our own retail stores can and should also lead to
additional business opportunities. In China, we introduced a new store format that was developed by a local
agency to fit the needs of the Chinese consumers and that is showing strong results. In terms of
distribution, ensuring delivery excellence through new, state-of-the art multi-channel distribution centers
in key markets also continues to support business development.
In information technology, improved communication with wholesale accounts and consumers via digital
channels also offers opportunities – e.g., through the increased use of 3D technology. In addition, new or
more efficient processes supported by digital technology may add value or result in cost optimisation. The
digitalisation of key business processes such as product design will continue to be advanced in order to
increase efficiency and effectiveness.
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With end consumers paying more attention to sustainability, there is an opportunity to improve
sustainability-related communication and sell more sustainable products. PUMA’s strategic approach for
sustainability is centered around creating maximum possible impact within the supply chain and final
customer. Numerous initiatives are ongoing and aligned with the UN Sustainable Development Goals. For
example, in 2023 PUMA reached another milestone: 7 out of 10 products were produced from better
materials such as recycled polyester. PUMA started the "Voices of a RE:GENERATION" initiative which aims
to have constant communication with GEN-Z activists and environmentalists and give feedback to our senior
management on how PUMA can further strengthen its sustainability initiatives and communicate its
sustainability efforts to young audiences. All these initiatives will help us to evolve sustainability within
PUMA and leverage corresponding business opportunities.
OVERALL ASSESSMENT OF THE RISK AND OPPORTUNITY SITUATION
The assessment of the overall risk and opportunity situation of the Group and PUMA SE is the result of a
consolidated view of the risk and opportunity categories described above for the financial year 2023.
Following the description in our 2023 combined management report, our assessment of PUMA's overall risk
situation this year is predominantly influenced by the macroeconomic environment and volatile retail
demand specially in key markets, as described above, and is focused on the major challenges these pose.
The Management Board is currently not aware of any material risks that, either individually, on an
aggregated basis or in combination with other risks, could jeopardise the continued existence of the Group
and PUMA SE.
However, we cannot exclude the possibility that in the future influencing factors, of which we are currently
unaware or which we currently do not consider to be material, could have a negative impact on the
continued existence of the Group or PUMA SE or individual consolidated companies. Also due to the
extremely solid balance sheet and the positive business outlook, the Management Board does not see any
significant threat to the continued existence of the PUMA Group and PUMA SE.
MAIN FEATURES OF THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM AS IT
RELATES TO THE GROUP'S ACCOUNTING PROCESS
The Management Board of PUMA SE is responsible for the preparation and accuracy of the annual financial
statements, the consolidated financial statements and the combined management report of PUMA SE. The
consolidated financial statements were prepared in accordance with the International Financial Reporting
Standards that apply in the EU, the requirements of the German Commercial Code (HGB), the German Stock
Corporation Act (AktG) and the German SE Implementation Act (SEAG). Certain disclosures and amounts
are based on current estimates by the Management Board and the management.
The Management Board is responsible for maintaining and regularly monitoring a suitable internal control
and risk management system covering the consolidated financial statements and the disclosures in the
combined management report. This control and risk management system is designed to ensure the
compliance and reliability of the internal and external accounting records, the presentation and accuracy of
the consolidated financial statements, and the combined management report and the disclosures contained
therein. It is based on a series of process-integrated monitoring steps and encompasses the measures
necessary to accomplish these, such as internal instructions, organisational and authorisation guidelines,
the relevant company guidelines and handbooks, a clear separation of functions within the Group and the
dual-control principle. The adequacy and operating effectiveness of these measures are regularly reviewed
by the Group Internal Audit, Risk Management & Internal Control Department.
For monthly financial reporting and consolidation, PUMA has a group-wide reporting and controlling system
that makes it possible to regularly and quickly detect deviations from projected figures and accounting
irregularities and, where necessary, to take countermeasures.
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By means of established internal reporting channels, the risk management system can regularly identify
events that could affect the Group's economic performance and its accounting process so that it can analyse
and evaluate the resulting risks and take the necessary actions to counter them.
In preparing the consolidated financial statements and the combined management report, it is sometimes
necessary to make assumptions and estimates based on the information available at the time the financial
statements and management report are prepared that affect the amount, presentation and explanation of
recognised assets and liabilities, income and expenses, contingent liabilities, and other reportable
information.
The Audit Committee of the Supervisory Board meets on a regular basis with the independent statutory
auditors, the Management Board and the Group Internal Audit, Risk Management & Internal Control
Department to discuss the results of the internal audits and statutory audits with reference to the internal
control and risk management system as it relates to the accounting process. At the annual meeting on the
financial statements, the auditor reports to the Supervisory Board (including the Audit Committee) on the
results of the audit of the annual and consolidated financial statements.
INTERNAL CONTROL SYSTEM
PUMA's internal control system applies to all employees throughout the Group as it incorporates the
principles, procedures and measures established by PUMA Group management. All essential business
processes that support the organisational implementation of management decisions must be taken into
account.
Within the PUMA Group, the methodology of the internal control system is based on the COSO Framework,
which describes internal management and monitoring considerations for key processes within the company.
Its purpose is to support the objectives of ensuring proper financial reporting, improving the efficiency and
effectiveness of the processes and maintaining compliance with legal framework conditions.
The PUMA control framework is applied uniformly to the entire Group. The requirement here is to manage
the significant risks through appropriate control activities. The objective is to continuously improve the
internal control system and to identify specific risks and potential for improvement in the control
environment at process level in order to define appropriate recommendations for action and to
systematically track their timely implementation. Independent monitoring bodies such as the Supervisory
Board and the Audit Committee help ensure that the control environment remains up-to-date. The
Management Board of PUMA SE bears overall responsibility for the internal control system. The
Management Board regularly updates the Audit Committee of the Supervisory Board of PUMA SE. The
internal control function of the Group Internal Audit, Risk Management & Internal Control Department has
been tasked with preparing regular reports for the Management Board in order to help coordinate the
internal control system from an operational perspective. The responsibilities, tasks and processes of the
internal control system are defined in guidelines.
With regard to the PUMA control framework, the following five core components must be kept in mind:
control environment, risk assessment, control activities, information and communication, and monitoring
activities.
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↗ G.21 INTERNAL CONTROL SYSTEM
The internal control system is based on the control environment established within the PUMA Group, in that
it lays out principles for employee and management behavior within the company. The standards practiced
are underpinned by internally formalised procedures and by clear guidelines on giving instructions and
authorisations to do so. Together with external regulations, these internal standards form a control
environment that applies to all employees of the PUMA Group, supported by the relevant management and
the process manager in the entities.
As described in the previous section headed "Risk Management," the PUMA Group is also subject to a large
number of risks that may potentially impact on company goals. Risk identification and assessment is
carried out every six months in order to manage material risks at Group level. Using the resulting risk
portfolio, the objective of the internal control system is to ensure that the compensating control measures
fully correspond to the risk assessment/evaluation. In addition, the internal control system's risk
assessment also includes a large number of more detailed risks in day-to-day operations – for example,
operational activities in accordance with compliance regulations.
Control activities serve to counteract the identified business risks. In order to ensure that the control
framework is continuously up-to-date and to monitor its application in business processes, an annual
"Internal Control Self-Assessment" (ICSA) is completed by the key business units of the PUMA Group. The
internal control function ensures that the key business units - at parent and subsidiary company level - are
included in the ICSA. The managers of these business units evaluate the specified control objectives of the
PUMA Group in relation to their business area. When doing so, the existing control framework is assessed
based on internal and external guidelines and best-practice standards. Based on the responses, a level of
implementation of the controls is determined, which undergoes independent verification by the Internal
Control function and is then communicated to the Management Board using established reporting channels.
The results of the ICSA are also reported to the Audit Committee and the statutory auditors and are used by
the internal audit function of the Group Internal Audit, Risk Management & Internal Control Department in
risk-oriented audit planning.
The purpose of informing and communicating potential business risks and control activities is to help make
sound business decisions, with the information required to do so being accessible within an appropriate and
timely framework. Established communication channels are continuously used in the PUMA Group to
achieve this. The internal control function coordinates awareness training and regular coordination
meetings in order to continuously guarantee, and also strengthen, its cooperation with the Management
Board and other managers of business units.
Control
Activities
Risk
Assessment
Information &
Communication
Monitoring
Activities
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The use of a standardised software system as the basis for monitoring activities is intended to ensure the
systematic and uniform implementation of ICSA across the entire company. The internal control function
analyses the results of the ICSA and derives recommended actions, which are coordinated with the
managers of the business units and the implementation status of which is reviewed and monitored
continuously.
┌
The Management Board also monitors the effectiveness of the risk management and internal control
system in a holistic manner. Accordingly, key aspects of the systems are reviewed on a quarterly basis as
part of cyclical reporting. This is to ensure that material risks are managed with an appropriate level of
transparency, that individual issues are discussed in an appropriate form and can be tracked, and that
possible improvements to the systems are considered. Supported by an established control environment,
the continuous system monitoring, and improvement reflects the PUMA Group's open risk culture. During
the reporting period, PUMA SE was not aware of any relevant circumstances that cast doubt on the
adequacy and effectiveness of the risk management and internal control systems nor that had not been
rectified by the balance sheet date. Nevertheless, it is worth noting that even systems that have been
characterised as appropriate and effective are subject to inherent limitations. As such, it is not possible to
guarantee the complete prevention of any procedural violations and/or risks arising.
└
PUMA Annual Report 2023
↗ Combined Management Report
272
OUTLOOK REPORT
GLOBAL ECONOMY
In their winter forecast dated 13 December 2023, experts at the Kiel Institute for the World Economy (Kiel
Institut für Weltwirtschaft – IfW Kiel) expect global gross domestic product (GDP) to increase by 2.9% in
2024, following growth of 3.1% in 2023. Meanwhile, inflation is rapidly on the decline, and central banks are
expected to start cutting interest rates in the first half-year of 2024. However, there are currently no
prospects of an economic upturn. A high level of uncertainty about the economic conditions is slowing
things down in the advanced economies, and fiscal incentives are tapering out. In China, economic
momentum remains subdued, in view of structural issues. According to experts at IfW Kiel, the risks to the
economic forecast for 2024 are primarily financial and political in nature. Among other things, there is
uncertainty about developments in China, where orderly consolidation in the property sector is still not
guaranteed. In addition, geopolitical risks have stemmed from the increasingly prominent differences
between China and the United States. Irrespective of this, the outcome of the upcoming presidential
elections in the United States in November harbours considerable economic and political uncertainty.
SPORTING GOODS INDUSTRY
Unless the geopolitical environment has any significant negative impact on the overall economic
environment, we expect growth in the sporting goods industry in 2024. We expect demand for sporting goods
to increase in 2024 as the trend towards increased sports activities and healthier lifestyles continues and
becomes even more significant following the COVID-19 pandemic. This applies equally to the increasing
popularity of athletic footwear and leisure/athletic apparel as an integral part of everyday fashion
("athleisure"). We also assume that major sporting events in the coming year, such as the Summer
Olympics in Paris and the UEFA Euro 2024 men's football championship in Germany, will help to support
growth in the sporting goods industry.
OUTLOOK 2024
We expect geopolitical and macroeconomic headwinds as well as currency volatility to persist in 2024. These
conditions already led to muted consumer sentiment and volatile demand in 2023 and we expect these
effects to continue in 2024, particularly in the first half of the year.
In this continued challenging environment, we are fully focused on executing our strategic priorities:
elevating the brand, increasing product excellence and improving our distribution quality - especially in the
key markets US and China. For us, 2024 is not only the year of sport with major events such as the Olympic
Games, Euro 2024 and the Copa America providing the perfect platform to showcase our strong product
innovation and credibility as a performance brand. It is also the year in which PUMA will invest in a new
global brand campaign to improve its positioning as the fastest sports brand in the world.
Supported by the continued brand momentum and despite ongoing global geopolitical and macroeconomic
challenges, PUMA expects to achieve mid-single-digit currency-adjusted sales growth and an operating
result (EBIT) in the range of € 620 million to € 700 million for the financial year 2024 (2023: € 621.6 million).
The outlook assumes that the future devaluation of the Argentine peso will be fully compensated by
corresponding price increases in Argentina.
PUMA Annual Report 2023
↗ Combined Management Report
273
We expect net income (2023: € 304.9 million) to change in 2024 in line with the operating result.
As in previous years, PUMA will continue to focus on managing short-term challenges without
compromising the brand's medium- and long-term momentum. Our sales growth and market share gains
will take priority over short-term profitability. The exciting product range for 2024 and the very good
feedback from retail partners as well as consumers give us confidence for the medium- and long-term
success and continued growth of PUMA.
INVESTMENTS
Investments in fixed assets of around € 300 million are planned for 2024. The majority of these investments
will be in infrastructure in order to create the operating conditions required for the planned long-term
growth. The investments mainly concern own distribution and logistics centers, investments in the
expansion and modernisation of the Group's own retail stores and investments in IT infrastructure.
FOUNDATION FOR LONG-TERM GROWTH
The Management Board and the Supervisory Board have set long-term strategic priorities. Action plans are
being implemented in a targeted and value-oriented manner. We believe that the corporate strategy
"Forever Faster" provides the basis for mid- and long-term positive development.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
This is a translation of the German version. In case of doubt, the German version shall apply.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
274
CONSOLIDATED FINANCIAL STATEMENTS
PUMA SE FOR FINANCIAL YEAR 2023
– INTERNATIONAL FINANCIAL REPORTING STANDARDS – IFRS
Consolidated Statement of Financial Position
275
Consolidated Income Statement
277
Consolidated Statement of Comprehensive Income 278
2
281
282
302
351
357
372
Consolidated Statement of Cash Flows
Statement of Changes in Equity
Notes to the Consolidated FLQDQFLDOStatements
Notes to the Consolidated Statement of
Financial Position
Notes to the Consolidated Income Statement
Additional information
Declaration by the Legal Representatives
Independent Auditor's Report
373
PUMA Annual Report 2023
↗ Consolidated Financial Statements
275
CONSOLIDATED FINANCIAL STATEMENTS
↗ T.01 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 Dec. 2023
31 Dec. 2022
Notes
€ million
€ million
ASSETS
Cash and cash equivalents
3
552.9
463.1
Inventories
4
1,804.4
2,245.1
Trade receivables
5
1,118.4
1,064.9
Income tax receivables
22
90.1
54.0
Other current financial assets
6
94.9
137.4
Other current assets
7
270.4
235.9
Current assets
3,931.1
4,200.4
Deferred tax assets
8
296.1
295.0
Property, plant and equipment
9
685.6
592.2
Right-of-use assets
10
1,087.7
1,111.3
Intangible assets
11
530.8
506.5
Other non-current financial assets
12
83.6
58.4
Other non-current assets
12
25.6
8.8
Non-current assets
2,709.3
2,572.3
Total assets
6,640.4
6,772.7
PUMA Annual Report 2023
↗ Consolidated Financial Statements
276
31 Dec. 2023
31 Dec. 2022
Notes
€ million
€ million
LIABILITIES AND EQUITY
Current borrowings
13
145.9
75.9
Trade payables
13
1,499.8
1,734.9
Income tax liabilities
22
79.3
86.8
Current lease liabilities
10
212.4
200.2
Other current provisions
16
27.7
50.3
Other current financial liabilities
13
78.6
76.1
Other current liabilities
13
493.4
618.9
Current liabilities
2,537.2
2,843.0
Non-current borrowings
1
13
426.1
251.5
Non-current lease liabilities
10
1,020.0
1,030.3
Deferred tax liabilities
8
12.4
42.0
Pension provisions
15
22.5
22.4
Other non-current provisions
16
27.3
29.5
Other non-current financial liabilities
13
11.4
13.8
Other non-current liabilities
13
1.3
1.4
Non-current liabilities
1,520.9
1,390.9
Subscribed capital
17
150.8
150.8
Capital reserve
17
93.8
90.8
Other reserves
17
2,330.4
2,253.6
Treasury stock
17
-21.6
-23.5
Equity attributable to the shareholders of PUMA SE
2,553.4
2,471.7
Non-controlling interests
17, 28
28.9
67.1
Total equity
2,582.3
2,538.8
Total liabilities and equity
6,640.4
6,772.7
1)
In order to improve the communication of decision-relevant information, non-current borrowings are no longer
reported under other non-current financial liabilities in the 2023 reporting year, but are reported in a separate
balance sheet item. The previous year's figures have been adjusted accordingly.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
277
↗ T.02 CONSOLIDATED INCOME STATEMENT
2023
2022
Notes
€ million
€ million
Sales
19, 24
8,601.7
8,465.1
Cost of sales
24
-4,615.1
-4,562.3
Gross profit
24
3,986.6
3,902.7
Royalty and commission income
38.5
33.8
Other operating income and expenses
20
-3,403.5
-3,295.9
thereof impairment losses on trade receivables and other financial
assets
-12.2
-4.4
Operating Result (EBIT)
621.6
640.6
Financial income
21
112.7
79.4
Financial expenses
21
-256.0
-168.3
Financial result
-143.3
-88.9
Earnings before taxes (EBT)
478.3
551.7
Taxes on income
22
-117.8
-127.4
Consolidated net income of the year
360.6
424.4
attributable to:
Non-controlling interests
17, 28
55.7
70.9
Net income attributable to the shareholders of PUMA SE
304.9
353.5
Earnings per share (€)
23
2.03
2.36
Earnings per share (€) - diluted
23
2.03
2.36
Weighted average number of outstanding shares (million shares)
23
149.85
149.65
Weighted average number of outstanding shares, diluted (million shares)
23
149.87
149.66
PUMA Annual Report 2023
↗ Consolidated Financial Statements
278
↗ T.03 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2023
2022
€ million
€ million
Consolidated net income of the year before attribution
360.6
424.4
Currency translation differences
-87.6
68.5
Net gain/ loss on cash flow hedges, net after tax
-18.0
-64.5
Items expected to be reclassified to the income statement in the future
-105.6
4.0
Remeasurements of the net defined benefit liability, net after tax
-0.8
7.6
Neutral effects financial assets through other comprehensive income (FVOCI), net after tax
-0.5
-3.4
Items not expected to be reclassified to the income statement in the future
-1.3
4.2
Other comprehensive income
-106.9
8.2
Comprehensive income
253.7
432.6
attributable to:
Non-controlling interests
54.2
75.0
Shareholders of PUMA SE
199.6
357.6
PUMA Annual Report 2023
↗ Consolidated Financial Statements
279
↗ T.04 CONSOLIDATED STATEMENT OF CASH FLOWS
2023
2022
Notes
€ million
€ million
Operating activities
Earnings before tax (EBT)
478.3
551.7
Adjustments for:
Depreciation and impairment
9, 10, 11
357.5
358.7
Reversal of impairment losses
9, 10, 11
-11.9
0.0
Non-realized currency gains/losses, net
60.1
-43.6
Financial income
21
-37.8
-32.3
Financial expenses
21
100.7
54.4
Gains/losses from the sale of fixed assets
-3.9
1.0
Changes to pension provision
15
-1.5
0.5
Other non cash effected expenses/income
22.5
28.6
Gross cash flow
25
964.1
918.9
Changes in receivables and other current assets
5, 6, 7
-153.4
-209.4
Changes in inventories
4
352.1
-747.0
Changes in trade payables and other current liabilities
13
-327.9
613.1
Net cash from operational business activities
834.9
575.6
Income taxes paid
22
-181.3
-157.4
Net cash from operating activities
25
653.6
418.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
280
2023
2022
Notes
€ million
€ million
Investing activities
Purchase of property and equipment
9, 11
-300.4
-263.6
Proceeds from sale of property and equipment
14.3
1.3
Payment for other assets
12
-36.3
-10.8
Interest received
21
37.8
32.3
Net cash used in investing activities
-284.6
-240.8
Financing activities
Repayment of lease liabilities
10
-208.0
-190.0
Repayment of current borrowings
13
-59.1
-9.5
Raising of current borrowings
13
0.0
17.9
Repayment of non-current borrowings
13
0.0
-60.0
Raising of non-current borrowings
13
299.6
0.0
Dividend payments to shareholders of PUMA SE
17
-122.8
-107.7
Dividend payments to non-controlling interests
17, 28
-92.4
-73.3
Interest paid
21
-94.3
-53.8
Net cash used in financing activities
25
-277.1
-476.4
Exchange rate-related changes in cash and cash equivalents
-2.1
4.4
Change in cash and cash equivalents
89.8
-294.4
Cash and cash equivalents at beginning of the financial year
463.1
757.5
Cash and cash equivalents at the end of the financial year
3, 25
552.9
463.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
281
↗ T.05 STATEMENT OF CHANGES IN EQUITY (in € million)
Other reserves
Subscribed
capital
Capital
reserve
Revenue
reserves incl.
retained
earnings
Difference
from currency
conversion
Cash flow
hedges
Treasury stock
Shareholders'
equity
Non-
controlling
interests
TOTAL equity
1 January 2022
150.8
86.4
2,245.4
-320.6
78.1
-26.9
2,213.3
65.2
2,278.5
Consolidated net income of the year
353.5
353.5
70.9
424.4
Other comprehensive income
4.2
63.8
-63.9
4.1
4.1
8.2
Comprehensive income
357.7
63.8
-63.9
357.6
75.0
432.6
Dividends paid to shareholders of PUMA SE / non-
controlling interests
-107.7
-107.7
-75.3
-183.0
Share-based payment and Utilization/Issue of
treasury stock
4.4
3.4
7.7
7.7
Transaction with shareholders
0.9
0.9
2.2
3.1
31 December 2022/ 1 January 2023
150.8
90.8
2,496.2
-256.8
14.2
-23.5
2,471.7
67.1
2,538.8
Consolidated net income of the year
304.9
304.9
55.7
360.6
Other comprehensive income
-1.3
-85.9
-18.1
-105.3
-1.5
-106.9
Comprehensive income
303.6
-85.9
-18.1
199.6
54.2
253.7
Dividends paid to shareholders of PUMA SE / non-
controlling interests
-122.8
-122.8
-92.4
-215.3
Share-based payment and Utilization/Issue of
treasury stock
3.0
1.9
4.9
4.9
Transaction with shareholders
0.1
0.1
31 December 2023
150.8
93.8
2,677.0
-342.7
-3.9
-21.6
2,553.4
28.9
2,582.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
282
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
1. GENERAL
Under the PUMA and Cobra Golf brand names, PUMA SE and its subsidiaries are engaged in the
development and sale of a broad range of sports and sports lifestyle products, including footwear, apparel
and accessories. The company is a European stock corporation (Societas Europaea/SE) and parent company
of the PUMA Group; its registered office is on PUMA WAY 1, 91074 Herzogenaurach, Germany. The competent
registry court is in Fürth (Bavaria), the register number is HRB 13085.
The consolidated financial statements of PUMA SE and its subsidiaries (hereinafter referred to in short as
the "Group" or "PUMA") were prepared in accordance with the "International Financial Reporting Standards
(IFRS)" accounting standards issued by the International Accounting Standards Board (IASB), as they are to
be applied in the EU, and the supplementary accounting principles to be applied in accordance with Section
315e(1) of the German Commercial Code (HGB). All of the IASB standards and interpretations, as they are to
be applied in the EU, which are mandatory for financial years as of 1 January 2023, have been applied.
The items contained in the financial statements of the individual Group companies are measured based on
the currency that corresponds to the currency of the primary economic environment in which the Company
operates. The consolidated financial statements are prepared in euros (EUR or €). The presentation of
amounts in millions of euros with one decimal place may lead to rounding differences since the calculation
of individual items is based on figures presented in thousands.
The cost of sales method is used for the consolidated income statement.
The following new or amended standards and interpretations have been used for the first time in the
current financial year:
↗ T.06 NEW AND AMENDED STANDARDS AND INTERPRETATIONS
Standard
Title
First-time adoption in the current financial
year
IFRS 17 (including amendment IFRS 17)
Insurance contracts
Amendments to IAS 1
Disclosure of accounting policies
Amendments to IAS 8
Definition of accounting estimates
Amendments to IAS 12
Deferred taxes relating to assets and liabilities from a single transaction
Amendments to IFRS 17
First-time application of IFRS 17 and IFRS 9 – Comparative information
Amendments to IAS 12
International tax reform – Pillar Two model rules
PUMA Annual Report 2023
↗ Consolidated Financial Statements
283
The amendments to the standards and interpretations described below, which were to be initially adopted
as of 1 January 2023, did not materially affect the PUMA consolidated financial statements.
The IFRS 17 standard regulates the accounting treatment of insurance contracts and replaces the previously
valid transitional standard IFRS 4. The scope of application includes insurance contracts, reinsurance
contracts and investment contracts with discretionary participation features. The amendment to IFRS 17
postponed the date of first mandatory application of IFRS 17 to 1 January 2023. These amendments have no
effect on the PUMA consolidated financial statements.
The amendments to IAS 1 and IFRS Guideline Document 2 are intended to assist preparers in deciding which
accounting policies they must disclose in the financial statements. This requires an enterprise to disclose
essential information relating to accounting policies rather than just its significant accounting policies. This
change has no material effect on the PUMA consolidated financial statements.
The amendment to IAS 8 is intended to help distinguish between accounting policies and accounting-related
estimates. The definition of a change in accounting estimates has been replaced by a definition of
accounting estimates. According to the new definition, accounting-related estimates are "monetary
amounts in financial statements that are subject to measurement uncertainty". This change has no effect on
the PUMA consolidated financial statements.
The amendment to IAS 12 narrows the scope of the "initial recognition exemption" under which no deferred
tax assets or liabilities are to be recognised at the time of recognition of an asset or liability. If temporary
differences of the same amount are simultaneously deductible and taxable in a single transaction, they are
no longer covered by the exception, meaning that deferred tax assets and liabilities must be recognised.
This change does not materially affect PUMA's net assets, financial position and results of operations.
However, the amendment to IAS 12 leads to a change in the disclosures to be made in the notes to the
consolidated financial statements.
The amendment to IFRS 17 concerns companies that apply IFRS 17 and IFRS 9 simultaneously for the first
time. The amendment allows an entity to present comparative information about a financial asset in such a
way that the IFRS 9 rules on classification and measurement would have been previously applied to that
financial asset. This change has no effect on the PUMA consolidated financial statements.
The amendments to IAS 12 introduce a temporary exemption for deferred tax accounting in the framework of
the implementation of the global minimum taxation ("OECD Pillar Two Scheme"). This should help to ensure
the consistency of financial statements while facilitating implementation of the rules. Targeted disclosure
requirements will also be introduced to help investors better understand the impact of the reform on the
company, especially before the country-specific legislation implementing minimum taxation enters into
force. This change has no material effect on the PUMA consolidated financial statements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
284
NEW, BUT NOT YET MANDATORY, STANDARDS AND INTERPRETATIONS
The following standards and interpretations have been released but will only become effective in later
reporting periods and are not applied earlier by the Group:
↗ T.07 NEW, BUT NOT YET MANDATORY, STANDARDS AND INTERPRETATIONS
Standard
Title
Date of adoption*
Planned adoption
Endorsed
Amendments to IFRS 16
Lease liabilities as part of a
sale and leaseback
transaction
01/01/2024
01/01/2024
Endorsement pending
Amendments to IAS 1
Classification of liabilities as
current or non-current
01/01/2024
01/01/2024
Amendments to IAS 1
Non-current liabilities with
covenants
01/01/2024
01/01/2024
Amendments to IAS 7 and
IFRS 7
Supplier financing
agreements
01/01/2024
01/01/2024
Amendments to IAS 21
Lack of exchangeability
01/01/2025
01/01/2025
Amendments to IFRS 10 and
IAS 28
Sale or contribution of
assets
Postponed indefinitely
*
Adjusted by EU endorsement, if applicable
PUMA does not expect that these amendments will have any significant effects on the net assets, financial
position and results of operations. However, the amendments to IAS 7 and IFRS 17 concerning supplier
financing agreements expand the scope of future disclosures in the notes to the consolidated financial
statements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
285
2. SIGNIFICANT CONSOLIDATION, ACCOUNTING AND VALUATION PRINCIPLES
CONSOLIDATION PRINCIPLES
The consolidated financial statements were prepared as of 31 December 2023, the reporting date of the
annual financial statements of the PUMA SE parent company, on the basis of uniform accounting and
valuation principles according to IFRS, as applied in the EU.
GROUP OF CONSOLIDATED COMPANIES
In addition to PUMA SE, the consolidated financial statements include all subsidiaries in which PUMA SE
directly or indirectly holds existing rights that give it the current ability to direct the relevant activities. At
present, control of all Group companies is based on a direct or indirect majority of voting rights.
Associated companies are generally accounted for in the Group using the equity method. As of 31
December 2023, however, the Group does not hold any investments in associated companies.
The changes in the number of Group companies (including the parent company PUMA SE) in the financial
year 2023 were as follows:
↗ T.08 GROUP OF CONSOLIDATED COMPANIES
As of
31 Dec. 2022
100
Formation of companies
1
Disposal of companies
-1
As of
31 Dec. 2023
100
The addition to the group of consolidated companies relates to the formation of PUMA Card Services NA
LLC, USA.
The disposal in the group of consolidated companies concerns the merger of PUMA Sports SEA Trading Pte.
Ltd., Singapore within the group of consolidated companies.
The changes in the group of consolidated companies did not have a significant effect on the net assets,
financial position and results of operations.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
286
The Group companies are allocated to regions as follows:
↗ T.09 LIST OF SHAREHOLDINGS
AS OF 31 DECEMBER 2023
No.
Companies/Legal Entities
Country
City
Shareholder
Share of capital
Parent company
1.
PUMA SE
Germany
Herzogenaurach
EMEA
2.
Austria Puma Dassler Gesellschaft m.b.H.
Austria
Salzburg
direct
100%
3.
stichd austria gmbh
Austria
Salzburg
indirect
100%
4.
Puma Czech Republic s.r.o.
Czech Republic
Prague
indirect
100%
5.
PUMA DENMARK A/S
Denmark
Aarhus
indirect
100%
6.
PUMA Estonia OÜ
Estonia
Tallinn
indirect
100%
7.
PUMA Finland Oy
Finland
Helsinki
indirect
100%
8.
PUMA FRANCE SAS
France
Strasbourg
indirect
100%
9.
stichd france SAS
France
Boulogne Billancourt
indirect
100%
10.
PUMA International Trading GmbH
Germany
Herzogenaurach
direct
100%
11.
PUMA Europe GmbH
Germany
Herzogenaurach
direct
100%
12.
PUMA Sprint GmbH
Germany
Herzogenaurach
direct
100%
13.
PUMA Mostro GmbH
Germany
Herzogenaurach
indirect
100%
14.
PUMA Blue Sea GmbH
Germany
Herzogenaurach
indirect
100%
15.
stichd germany gmbh
Germany
Düsseldorf
indirect
100%
16.
PUMA UNITED KINGDOM LTD
Great Britain
London
indirect
100%
17.
PUMA PREMIER LTD
Great Britain
London
indirect
100%
18.
STICHD UK LTD
Great Britain
Mansfield
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
287
AS OF 31 DECEMBER 2023
19.
STICHD SPORTMERCHANDISING UK LTD
Great Britain
London
indirect
100%
20.
GENESIS GROUP INTERNATIONAL LIMITED
Great Britain
Manchester
direct
100%
21.
Sport Equipment Hellas S. A. of Footwear, Apparel and Sportswear u.Li.
Greece
Athens
direct
100%
1)
22.
PUMA ITALIA S.R.L.
Italy
Assago
indirect
100%
23.
STICHD ITALY SRL
Italy
Assago
indirect
100%
24.
Puma Sport Israel Ltd. In Liq
Israel
Hertzeliya
indirect
100%
25.
Puma Benelux B.V.
Netherlands
Leusden
direct
100%
26.
PUMA International Sports Marketing B.V.
Netherlands
Leusden
direct
100%
27.
stichd group B.V.
Netherlands
s-Hertogenbosch
direct
100%
28.
stichd international B.V.
Netherlands
s-Hertogenbosch
indirect
100%
29.
stichd sportmerchandising B.V.
Netherlands
s-Hertogenbosch
indirect
100%
30.
stichd B.V.
Netherlands
s-Hertogenbosch
indirect
100%
31.
stichd logistics B.V.
Netherlands
s-Hertogenbosch
indirect
100%
32.
stichd licensing B.V.
Netherlands
s-Hertogenbosch
indirect
100%
33.
PUMA NORWAY AS
Norway
Fornebu
indirect
100%
34.
PUMA POLSKA sp. z o.o.
Poland
Warsaw
indirect
100%
35.
PUMA SPORTS ROMANIA SRL
Romania
Voluntari
indirect
100%
36.
PUMA-RUS o.o.o.
Russia
Moscow
indirect
100%
37.
PUMA SPORTS DISTRIBUTORS (PTY) LTD
South Africa
Cape Town
indirect
100%
38.
PUMA SPORTS S A (PTY) LTD
South Africa
Cape Town
indirect
100%
39.
PUMA IBERIA SLU
Spain
Madrid
direct
100%
40.
STICHDIBERIA S.L.
Spain
Cornella de Llobregat
indirect
100%
41.
Nrotert AB
Sweden
Helsingborg
direct
100%
42.
PUMA Nordic AB
Sweden
Helsingborg
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
288
AS OF 31 DECEMBER 2023
43.
Nrotert Sweden AB
Sweden
Helsingborg
indirect
100%
44.
stichd nordic AB
Sweden
Helsingborg
indirect
100%
45.
MOUNT PUMA AG
Switzerland
Oensingen
direct
100%
46.
Puma Retail AG
Switzerland
Oensingen
indirect
100%
47.
stichd switzerland ag
Switzerland
Egerkingen
indirect
100%
48.
PUMA Spor Giyim Sanayi ve Ticaret A.S.
Türkiye
Istanbul
indirect
100%
49.
PUMA UKRAINE LIMITED LIABILITY COMPANY
Ukraine
Kiew
indirect
100%
50.
PUMA Middle East FZ-LLC
United Arab Emirates
Dubai
indirect
100%
51.
PUMA UAE (L.L.C)
United Arab Emirates
Dubai
indirect
100%
Americas
52.
PUMA Sports Argentina S.A. (former Unisol S.A.)
Argentina
Buenos Aires
indirect
100%
53.
PUMA Sports Ltda.
Brazil
Sao Paulo
indirect
100%
54.
PUMA Canada, Inc.
Canada
Toronto
indirect
100%
55.
PUMA United Canada ULC
Canada
Vancouver
indirect
51%
56.
PUMA CHILE SpA
Chile
Santiago
direct
100%
57.
PUMA SERVICIOS SpA
Chile
Santiago
indirect
100%
58.
PUMA México Sport, S.A. de C.V.
Mexico
Mexico City
direct
100%
59.
Importaciones RDS, S.A. de C.V.
Mexico
Mexico City
direct
100%
60.
GLOBAL LICENSE STICHD GROUP MEXICO S.A. de C.V.
Mexico
Mexico City
indirect
100%
61.
Importationes Brand Plus Licensing S.A. de C.V.
Mexico
Mexico City
indirect
100%
62.
Distribuidora Deportiva PUMA S.A.C.
Peru
Lima
indirect
100%
63.
Distribuidora Deportiva PUMA Tacna S.A.C.
Peru
Tacna
indirect
100%
64.
PUMA Sports LA S.A.
Uruguay
Montevideo
direct
100%
65.
PUMA Suede Holding, Inc.
USA
Wilmington
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
289
AS OF 31 DECEMBER 2023
66.
PUMA North America, Inc.
USA
Wilmington
indirect
100%
67.
Cobra Golf Incorporated
USA
Wilmington
indirect
100%
68.
PUMA United Aviation North America LLC
USA
Wilmington
indirect
70%
69.
PUMA United Canada Holding, Inc.
USA
Wilmington
indirect
100%
70.
PUMA United North America LLC
USA
Dover
indirect
51%
71.
Janed Canada, LLC
USA
Dover
indirect
51%
72.
stichd NA, Inc.
USA
Lewes
indirect
100%
73.
PUMA Card Services NA, LLC.
USA
Plantation
indirect
100%
Asia/Pacific
74.
PUMA Australia Pty. Ltd.
Australia
Melbourne
indirect
100%
75.
White Diamond Australia Pty. Ltd.
Australia
Melbourne
indirect
100%
76.
White Diamond Properties Pty. Ltd.
Australia
Melbourne
indirect
100%
77.
PUMA China Ltd. (彪⻢（上海）商贸有限公司)
China
Shanghai
indirect
100%
78.
stichd Trading (Shanghai) Co., Ltd. (斯梯起特贸易（上海）有限公司)
China
Shanghai
indirect
100%
79.
Guangzhou World Cat Information Consulting Services Company Ltd. (广州寰
彪信息咨询服务有限公司)
China
Guangzhou
indirect
100%
80.
World Cat Ltd. (寰彪有限公司)
China
Hong Kong
direct
100%
81.
Development Services Ltd.
China
Hong Kong
direct
100%
82.
PUMA International Trading Services Ltd.
China
Hong Kong
indirect
100%
83.
PUMA ASIA PACIFIC LTD (彪馬亞太區有限公司)
China
Hong Kong
direct
100%
84.
PUMA Hong Kong Ltd. (彪馬香港有限公司)
China
Hong Kong
indirect
100%
85.
stichd Limited
China
Hong Kong
indirect
100%
86.
PUMA Sports India Private Ltd.
India
Bangalore
indirect
100%
87.
PT PUMA Cat Indonesia
Indonesia
Jakarta
indirect
100%
88.
PT PUMA Sports Indonesia
Indonesia
Jakarta
indirect
100%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
290
AS OF 31 DECEMBER 2023
89.
PUMA Japan K.K. (プーマ ジャパン株式会社)
Japan
Tokyo
indirect
100%
90.
PUMA Korea Ltd. (푸마코리아 유한회사)
(South) Korea
Seoul
direct
100%
91.
Stichd Korea Ltd
(South) Korea
Incheon
indirect
100%
92.
PUMA Sports Goods Sdn. Bhd.
Malaysia
Petaling Jaya
indirect
100%
93.
STICHD SOUTHEAST ASIA SDN. BHD.
Malaysia
Kuala Lumpur
indirect
100%
94.
PUMA New Zealand Ltd.
New Zealand
Auckland
indirect
100%
95.
PUMANILA IT SERVICES INC.
Philippines
City of Makati
indirect
100%
96.
PUMA Sports Philippines Inc.
Philippines
City of Makati
indirect
100%
97.
PUMA SOUTH EAST ASIA PTE. LTD.
Singapore
indirect
100%
98.
PUMA Taiwan Sports Ltd. (台灣彪馬股份有限公司）
China (Taiwan)
Taipei
indirect
100%
99.
PUMA Sports (Thailand) Co., Ltd.
Thailand
Bangkok
indirect
100%
100.
World Cat Vietnam Sourcing & Development Services Company Limited
(CÔNG TY TNHH DͥCH VͿ PHÁT TRI͝N & NGUͭN CUNG NG WORLD CAT
VI͡T NAM)
Vietnam
Ho Chi Minh City
indirect
100%
1)
subsidiaries which are assigned to be economically 100% PUMA Group
PUMA 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
(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
from the third subsection.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
291
CURRENCY CONVERSION
In general, monetary items in foreign currencies are converted in the individual financial statements of the
Group companies at the exchange rate valid on the balance sheet date. Any resulting currency gains and
losses are immediately recognised in the income statement. Non-monetary items are converted at
historical acquisition and manufacturing cost.
The assets and liabilities of foreign subsidiaries, whose functional currency is not the euro, have been
converted to euros at the exchange rates valid on the balance sheet date. Expenses and income have been
converted at the annual average exchange rates. Any differences resulting from the currency conversion of
net assets relative to exchange rates that had changed in comparison with the previous year were adjusted
directly in other comprehensive income.
The significant conversion rates per euro are as follows:
↗ T.10 SIGNIFICANT CONVERSION RATES
2023
2022
Currency
Reporting date
exchange rate
Average
exchange rate
Reporting date
exchange rate
Average
exchange rate
USD
1.1050
1.0813
1.0666
1.0530
CNY
7.8509
7.6600
7.3582
7.0788
JPY
156.3300
151.9903
140.6600
138.0274
MXN
18.7231
19.1830
20.8560
21.1869
ARS*
892.9166
-
188.7249
-
GBP
0.8691
0.8698
0.8869
0.8528
*
Due to the application of accounting for hyperinflationary economies in Argentina, all items in the financial
statements are converted at the exchange rate applicable on the reporting date.
Argentina and Türkiye are in a hyperinflation environment. In 2022, the subsidiaries whose functional
currency is the Argentine peso or the Turkish lira applied the accounting for hyperinflationary economies in
accordance with IAS 29 for the first time, with retroactive effect from 1 January 2022. The carrying amounts
of non-monetary assets and liabilities, shareholders' equity and other comprehensive income are translated
into the unit of measurement applicable at the balance sheet date and thus adjusted to reflect price
changes. The financial statements are based on the concept of historical acquisition and/or production
costs. The exchange rate as of 31 December 2023 was used for conversion into the reporting currency, the
euro, for all items.
Gains and losses on the net monetary position are included in the financial result. In the financial year 2023,
the net profit from the monetary items amounted to € 7.7 million (previous year: € 0.9 million). The amount
also includes interest income from invested liquid funds in accordance with IAS 29.28.
The price index used for Türkiye as of 31 December 2023 was 1,859.4 (31 December 2022: 1,128.5) and is based
on the consumer price index. The general price index used for Argentina as of 31 December 2023 was
3,500.4 (31 December 2022: 1,134.3).
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ACCOUNTING AND VALUATION PRINCIPLES
FINANCIAL INSTRUMENTS
Financial instruments are classified and recognised in accordance with IFRS 9. Acquisitions and disposals of
financial assets, with the exception of trade receivables, are initially recognised on the settlement date and
are recorded at fair value.
For investments (equity instruments), IFRS 9 allows a measurement at fair value through other
comprehensive income (FVOCI) under certain conditions. If these investments, however, are disposed of or
adjusted in value, the gains and losses from these investments which were not realised up to this point are
reclassified to retained earnings in accordance with IFRS 9.
DERIVATIVE FINANCIAL INSTRUMENTS/HEDGE ACCOUNTING
In relation to the accounting of hedge relationships, PUMA made use of the option to continue applying the
rules of IAS 39 for hedge accounting.
Derivative financial instruments are recognised at fair value at the time a contract is entered into and
thereafter. At the time a hedging instrument is concluded, PUMA classifies the derivatives either as hedges
of a planned transaction and hedging variable interest flows from the promissory note loans (cash flow
hedge accounting), or as hedges of the fair value of a recognised asset or liability (fair value hedge).
At the time when the transaction is concluded, the hedging relationship between the hedging instrument
and the underlying transaction as well as the purpose of risk management and the underlying strategy are
documented. In addition, assessments as to whether the derivatives used in the hedge accounting
compensate effectively for a change in the fair value or the cash flow of the underlying transaction are
documented at the beginning of the hedging relationship and continuously thereafter.
The Group designates the spot rate for forward transactions and the intrinsic value for options contracts.
The interest component and/or fair value are excluded from the designation of the hedging instrument and
are recorded in the financial result through profit or loss.
The Group determines the existence of an economic relationship between the hedging instrument and the
hedged underlying transaction on the basis of the key valuation parameters, such as the reference interest
rate, the currency, the amount and the time of their respective cash flows (critical terms match method).
The Group uses the cumulative dollar offset method to assess whether the derivative designated in each
hedging relationship is expected to be prospectively effective and retroactively effective in relation to
offsetting changes in the cash flows of the hedged underlying transaction.
The main reason for ineffectiveness is the decline or loss of hedged transactions in these hedging
relationships.
Changes in the market value of derivatives that are intended and suitable for cash flow hedging and that
prove to be effective are adjusted directly in other comprehensive income, taking into account deferred
taxes. If there is no complete effectiveness, the ineffective part is recognised in the income statement. The
amounts recognised in other comprehensive income are recognised in the income statement during the
same period in which the hedged planned transaction affects the income statement. If, however, a hedged
future transaction results in the recognition of a non-financial asset or a liability, gains or losses previously
recorded in other comprehensive income are included in the initial measurement of the acquisition costs of
the respective asset or liability.
Changes in the market value of derivatives that qualify for and are designated as fair value hedges are
recognised directly in the consolidated income statement, together with changes in the fair value of the
underlying transaction attributable to the hedged risk. The changes in the market value of the derivatives
PUMA Annual Report 2023
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293
and the change in the underlying transaction attributable to the hedged risk are reported in the
consolidated income statement under the item relating to the underlying transaction.
The fair values of the derivative instruments used to secure planned transactions and for hedging the
variable cash flows from the promissory note loans (cash flow hedge accounting) and to secure the fair
value of a recognised asset or liability (fair value hedge) are shown under "Other current and non-current
financial assets or liabilities".
PUMA AS LESSEE
The leases for which PUMA acts as a lessee are identified at the individual contract level. For these leases,
PUMA recognises a right-of-use asset and a respective lease liability, with the exception of short-term
leases (defined as leases with a term of no more than 12 months) and low-value lease agreements (with a
value of less than € 5,000 at contract conclusion). In the case of a short-term lease or low-value lease, the
Group recognises the lease payments on a straight-line basis over the term of the lease agreement as other
operating expense.
In addition, right-of-use assets are not recognised for intangible assets. PUMA has made use of the option
and decided not to apply IFRS 16 with regard to leases for intangible assets.
The lease liability at initial recognition is measured at the present value of the not yet paid lease payments
at the beginning of the lease agreement. The present value is calculated using the incremental borrowing
rate, as the interest rate implicit in the lease is usually not known.
A number of lease agreements, particularly for real estate properties, contain extension and termination
options. When determining agreement terms, all facts and circumstances are taken into account that offer a
financial incentive to exercise the extension option or not to exercise the termination option. The changes in
the term of a lease due to the exercise or non-exercise of such options are only taken into account for the
agreement term if they are sufficiently certain.
The lease liability is recognised as a separate line item on the consolidated balance sheet.
The right-of-use assets comprise the respective lease liability as part of initial valuation. Lease instalments
that are paid before or at the beginning of the lease are added. Lease incentives received from the lessor
are deducted and initial direct costs are included. If dismantling obligations exist with regard to the leased
assets, they are included in the valuation of the right-of-use assets. The subsequent valuation of the right-
of-use assets is at acquisition cost less accumulated depreciation and impairment losses.
The right-of-use assets are generally depreciated over the term of the lease. If the useful life of the asset
underlying the lease is shorter, this limits the depreciation period accordingly. Depreciation starts with the
commencement of the lease.
As part of the practical expedient, IFRS 16 permits dispensing with a separation between non-lease
components and lease components. With regard to land and buildings, PUMA generally does not apply the
practical expedient, meaning that the right-of-use assets relating to land and buildings only contain leasing
components. With regard to other right-of-use assets (comprising technical equipment & machines and
motor vehicles), the practical expedient is generally applied, the result of which is that the leasing
components and non-leasing components are both recognised.
The right-of-use assets are recognised as a separate line item in the consolidated balance sheet.
The rights of use are subject to the impairment regulations pursuant to IAS 36. As a general rule, the right-
of-use assets are tested for impairment (impairment test) if there is any indication that the value of the
asset could be impaired. The right-of-use assets, in particular in connection with the Group's own retail
stores, are subjected to an impairment test if there are indicators or changes in planning assumptions that
PUMA Annual Report 2023
↗ Consolidated Financial Statements
294
suggest that the carrying amount of the assets may not be recoverable. To this end, a triggering event test
of all retail stores, each of which is a separate cash-generating unit, is carried out after preparation of the
annual budget planning or on an ad-hoc basis.
For the purposes of the triggering event test, the recoverable amount of the respective retail stores is
determined as a value in use using a simplified discounted cash flow method. The value in use is
determined on the basis of the planned cash flows for the retail stores according to the budget, which is
prepared on a bottom-up basis and approved by management. The forecast period is derived from the
expected useful lives of the respective retail store and is reviewed annually. Following the bottom-up
budget, revenue and cost developments are used as a basis for the remaining useful life, the growth rate of
which is based on expected nominal retail growth. Growth rates in the single-digit percentage range are
expected for all retail stores over the three-year detailed planning period. In calculating the value in use of
retail transactions, cash flows in non-inflationary countries were measured at a weighted cost of capital
rate of between 8.8% and 38.0% (previous year: between 8.2% and 25.3%) and the cash flows of retail
transactions in the two high-inflation countries with a weighted cost of capital between 31.2% and 145.0%
(previous year: between 20.0% and 62.7%). This was based on a risk-free interest rate on equivalent term
structures of 3.1% (previous year: 2.3%) and a market risk premium of 7.0% (previous year: 7.3%) are used as
a basis.
If, in the triggering event test, the carrying amount of the retail store assets exceeds the simplified value in
use, the recoverable amount of this cash-generating unit is calculated with the discounted cash flow
method using the above cost of capital rates. This is based on the individual planning of cash flows for the
retail store. If an impairment arises, the right of use is impaired first.
If there are indications that retail stores for which impairment has been recorded in the past have been able
to achieve a turnaround and that their rights of use are recoverable, the impairment is reversed up to a
maximum of the amount of amortised costs.
If there is an impairment loss or a reversal of an impairment loss, this is allocated to the central area in the
segment reporting under IFRS 8. However, the impaired assets are reported in the relevant operating
segments.
PUMA AS LESSOR
In financial year 2023, the accounting principles of IFRS 16 were applied for PUMA as a lessor for the first
time. If PUMA acts as a lessor, it is determined at the beginning of the lease whether it is a finance lease or
an operating lease. In order to classify the lease agreement, PUMA makes an overall assessment of
whether the lease essentially transfers all the risks and benefits associated with ownership of the
underlying asset. If this is the case, it is classified as a finance lease. If not, it is classed as an operating
lease. Various indicators are taken into account as part of this assessment, such as whether the lease ratio
comprises the majority of the economic useful life of the underlying asset. At our discretion, the leases in
which PUMA acts as an intermediate lessor are in most cases finance leases, as subletting always covers
most of the term of the main lease. If PUMA acts as an interim lessor, the shares in the main lease contract
and the sub-lease contract are accounted for separately.
In the case of finance leases, a net investment (receivable) equal to the discounted future rental payments
to be received is recognised in the balance sheet and reported under other assets (without inclusion in
working capital). The marginal debt interest rate is used to determine the discount, as the interest rate
underlying the lease is generally unknown. Interest income from finance leases is reported in the cash flow
from investing activities.
If the lease is classified as operating leases, the lease payments are immediately recognised in profit or loss
as rental income.
PUMA Annual Report 2023
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295
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash and bank balances. This also includes free cash and cash
equivalents that are invested as a fixed-term deposit with a term of up to three months. The total amount of
cash and cash equivalents is consistent with the cash and cash equivalents stated in the cash flow
statement.
Cash and cash equivalents are measured at amortised cost. They are subject to the impairment
requirements in accordance with IFRS 9 "Financial Instruments". PUMA monitors the credit risk of these
financial instruments taking into account the economic situation, external credit rating and/or premiums for
credit default swaps (CDS) of other financial institutions. The credit risk from cash and cash equivalents is
classified as immaterial, due to the relatively short terms and the investment-grade credit rating of the
counterparty, which signals a low probability of default for the financial instruments.
INVENTORIES
The Group procures inventories primarily from third parties and these are reported as goods within
inventories. To a small extent, footwear and golf clubs are produced in-house, which are reported as
finished goods together with the goods within the inventories.
Inventories are measured at acquisition or manufacturing cost or at the lower net realisable values derived
from the selling price at the balance sheet date. The acquisition cost of merchandise is determined using an
averaging method. Value adjustments are adequately recorded, depending on age, seasonality and
realisable market prices.
TRADE RECEIVABLES
Trade receivables are initially measured at the transaction price and subsequently at amortised cost with
deduction of value adjustments, in the form of a provision for risks.
When determining the provision for risks for trade receivables, PUMA uniformly applies the simplified
method in order to determine the expected credit losses over the remaining lifetime of the trade receivables
(called "lifetime expected credit losses") in accordance with the provisions of IFRS 9 "Financial
Instruments". For this, trade receivables are classified by geographic region into suitable groups with
shared credit risk characteristics. The expected credit losses are calculated using a matrix that presents
the age structure of the receivables and depicts a likelihood of loss for the individual maturity bands of the
receivables on the basis of historic credit loss events and future-based factors. The percentage rates for the
loss likelihoods are checked regularly to ensure they are up to date. If objective indications of a credit
impairment are found regarding the trade receivables of a certain customer, a detailed analysis of this
customer's specific credit risk is conducted and an individual provision for risks is established for the trade
receivables with respect to this customer. If a credit insurance is in place, it is taken into account when
determining the amount of the risk provision.
The Group assumes that the default risk of a financial asset has increased significantly if it is more than
30 days overdue.
OTHER FINANCIAL ASSETS
Other financial assets are classified based on the business model for control and the cash flows of the
financial assets. In the Group, financial assets are generally held under a business model that provides for
"holding" the asset until maturity, in order to collect the contractual cash flows. The second condition is that
the terms and conditions of the financial asset result in cash flows at specified times, which exclusively
represent repayments and interest payments on the outstanding nominal amount.
The "trading" business model is used for financial assets in the form of derivatives without a hedging
relationship. These are valued at fair value through profit or loss (FVPL).
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296
Non-current financial assets include rental deposits and other assets. Non-interest-bearing non-current
assets are discounted to present value if the resulting effect is significant.
INVESTMENTS
The investment recognised under non-current financial assets belongs to the category "measured at fair
value through other comprehensive income" (FVOCI), since these investments are held over the long term
for strategic reasons.
All purchases and disposals of investments are recorded on the settlement date. Investments are initially
recognised at fair value plus transaction costs. They are also recognised at fair value in subsequent periods.
Unrealised gains and losses are recognised in other comprehensive income, taking into account deferred
taxes. The gain or loss on disposal of investments is transferred to retained earnings.
The category "measured at fair value through profit or loss" (FVPL) is not used with regard to investments.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are measured at acquisition cost, net of accumulated depreciation. The
depreciation period depends on the expected useful life of the respective item. The straight-line method of
depreciation is applied. The useful life depends on the type of the assets involved. Buildings are subject to a
useful life of between ten and fifty years, and a useful life of between three to ten years is assumed for
movable assets.
Repair and maintenance costs are recorded as an expense as of the date on which they were incurred.
Substantial improvements and upgrades are capitalised to the extent that the criteria for capitalisation of an
asset item apply.
INVESTMENT PROPERTY
In the financial year 2023, accounting for investment property was applied for the first time in accordance
with IAS 40. These are accounted for in the same way as property, plant and equipment in accordance with
the cost model, with their acquisition or production costs less scheduled depreciation and any necessary
impairment losses. Depreciation is carried out on a straight-line basis and the useful lives are generally
equivalent to those of property, plant and equipment used in-house.
OTHER INTANGIBLE ASSETS (NOT INCLUDING GOODWILL)
Acquired intangible assets largely consist of concessions, intellectual property rights and similar rights.
These are measured at acquisition cost, net of accumulated amortisation. The useful life of intangible
assets is between three and ten years. Scheduled depreciation is done on a straight-line basis.
If the capitalisation requirements of IAS 38.57 "Intangible Assets" are met cumulatively, expenses in the
development phase for internally generated intangible assets are capitalised at the time they arise. In
subsequent periods, internally generated intangible assets and acquired intangible assets are measured at
cost less accumulated amortisation and impairment losses. In the Group, internally generated intangible
assets are generally depreciated on a straight-line basis over a useful life of 3 years.
There are also trademark rights acquired for a fee in relation to Cobra Golf. Cobra Golf, founded in 1978, has
a brand history spanning over 40 years in golf. The Cobra brand represents the core of the Golf business
area and is continued through ongoing marketing investments by the PUMA Group in the Cobra brand. Due
to the stability of the golf market and the continuation of the brand by PUMA, an indefinite useful life is
assumed for the Cobra brand.
PUMA Annual Report 2023
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IMPAIRMENT OF ASSETS
Intangible assets with an indefinite useful life are not amortised according to schedule but are subjected to
an annual impairment test. Property, plant and equipment, right-of-use assets, and other intangible assets
with finite useful lives are tested for impairment if there is any indication of impairment in the value of the
asset concerned. In order to determine whether there is a requirement to record the impairment of an
asset, the recoverable amount of the respective asset (the higher amount of the fair value less costs to sell
and value in use) is compared with the carrying amount of the asset. If the recoverable amount is lower than
the carrying amount, the difference is recorded as an impairment loss. The test for impairment is
performed, if possible, at the level of the respective individual asset, otherwise at the level of the cash-
generating unit. Goodwill, on the other hand, is tested for impairment only at the level of a group of cash-
generating units. If it is determined within the scope of the impairment test that an asset needs to be
impaired, then the goodwill, if any, of the group of cash-generating units is written down initially and, in a
second step, the remaining amount is distributed proportionately over the remaining assets within the
application scope of IAS 36. If the reason for the recorded impairment no longer applies, a reversal of
impairment loss is recorded to the maximum amount of the amortised costs. There is no reversal of an
impairment loss for goodwill.
The recoverable amount is primarily calculated using the discounted cash flow method. For determining the
fair value less costs to sell and value in use, the expected cash flows are based on corporate planning data.
Expected cash flows are discounted using an interest rate in line with market conditions. As part of the fair
value determination less cost to sell, no special synergies of cash-generating units are taken into account,
and corporate planning data is adjusted to the assumptions of market participants, if required. Moreover,
there is a difference between the fair value less costs to sell and the value in use because the costs to sell
are also taken into account.
Trademarks with an indefinite useful life are subjected to an impairment test based on the relief from
royalty-method during the financial year or when the occasion arises. If there is evidence that the
underlying Cobra business is insufficiently profitable, the trademark is not only valued individually using the
relief from royalty-method, but the recoverable amount of the cash-generating units to which the trademark
is attributable is determined.
See chapter 11 for further details, in particular regarding the assumptions used for the calculation.
BORROWINGS, OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES
In general, these items are recognised at fair value, taking into account transaction costs, and subsequently
recognised at amortised cost. Non-interest or low-interest-bearing liabilities with a term of at least one
year are recognised at present value, taking into account an interest rate in line with market conditions, and
are compounded until their maturity at their repayment amount.
The "trading" business model is used for financial liabilities in the form of derivatives without a hedge
relationship. These are valued at fair value through profit or loss (FVPL).
Current borrowings also include those long-term loans that have a maximum residual term of up to one year.
PUMA offers its suppliers a supplier financing programme. This is reverse factoring, the financing
conditions of which are also linked to the achievement of sustainability targets by the suppliers in most
cases. Participation in the programme is voluntary for the suppliers and helps them to already pre-finance
the supplier invoices to PUMA from one of the partner banks against an interest discount significantly
before the customary payment date. PUMA is not affected by the participation of the suppliers in the
supplier financing programme (in particular no changes to the payment terms, no changes to the payment
methods and/or no changes to the original contractual conditions). Accordingly, the liabilities are recognised
in the balance sheet as trade payables, and cash outflows are allocated to the cash inflow from operating
activities in the cash flow statement.
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PROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS
In addition to defined benefit plans, some companies apply defined contribution plans, which do not result in
any additional pension commitment other than the current contributions. The pension provision under
defined benefit plans is generally calculated using the projected unit credit method. This method takes into
account not only known pension benefits and pension rights accrued as of the reporting date, but also
expected future salary and pension increases. The defined benefit obligation (DBO) is calculated by
discounting expected future cash outflows at the rate of return on senior, fixed-rate corporate bonds. The
currencies and maturity periods of the underlying corporate bonds are consistent with the currencies and
maturity periods of the obligations to be satisfied. In some of the plans, the obligation is accompanied by a
plan asset. In that case, the pension provision shown is reduced by the plan asset.
Details regarding the assumed life expectancy, the mortality tables used and other assumptions are shown
in chapter 15.
OTHER PROVISIONS
Provisions for the expected expenses from warranty obligations pursuant to the respective national sales
contract laws are recognised at the time of sale of the relevant products, according to the best estimate in
relation to the expenditure needed in order to fulfil the Group's obligation.
Provisions are also made to account for onerous contracts. An onerous contract is assumed to exist where
the unavoidable costs for fulfilling the contract exceed the economic benefit arising from this contract.
MANAGEMENT INCENTIVE PROGRAMMES
PUMA uses cash-settled share-based payments, share-based payments settled in cash or equities, and key
performance indicator-based long-term incentive programmes. The share-based payments settled in cash
or equities are accounted for in the same way as cash-settled share-based payments.
Detailed information on the management incentive programmes is presented in Chapter 18.
RECOGNITION OF SALES
The Group recognises sales from the sale of sporting goods. The sales are measured at fair value of the
consideration to which the Group expects to be entitled from the contract with customers, taking into
account returns, discounts and rebates. Amounts collected on behalf of third parties (such as VAT) are not
included in sales. The Group records sales at the time when PUMA fulfils its performance obligation to
customers and has transferred the right of disposal over the product to customers.
The Group sells footwear, apparel and accessories both to wholesalers and directly to customers through its
own retail activities and online sales channels. Meanwhile, the sales-related warranty services cannot be
purchased separately and do not lead to services that go beyond the assurance of the specifications at the
time of the transfer of risk. Accordingly, the Group records warranties in the balance sheet in accordance
with IAS 37 "Provisions, contingent liabilities and contingent assets".
In the case of sales of products to wholesalers, the sales revenue is recorded at the date on which the right
of disposal over the products is transferred to customers, in other words, when the products have been
shipped to the specific location of the wholesaler (delivery). After delivery, the wholesaler bears the
inventory risk and has full right of disposal over the manner and means of distribution and the selling price
of the products. In the case of sales to end customers in the Group's own retail stores, the sales are
recorded at the date when the right of disposal over the products is transferred to the end customer, in
other words, the date on which the end customer buys the products in the retail store. The payment of the
purchase price is due as soon as the customers purchase the products. In the case of sales of goods
through our own online sales channels, sales are realised when the end customers have accepted the goods
and the power of disposal over the goods has been passed to the end customer. The payment terms applied
correspond to the standard industry payment terms for each country.
PUMA Annual Report 2023
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Under certain conditions and according to the contractual stipulations, customers have the option to
exchange products or return them for a credit. The amount of the expected returns is estimated on the basis
of past experience and is deducted from sales in the form of a liability based on refund obligations. The
asset value of the right arising from the product return claim is recorded under inventories and leads to a
corresponding reduction of cost of sales.
ROYALTY AND COMMISSION INCOME
The Group recognises license and commission income from the out-licensing of trademark rights to third
parties in accordance with IFRS 15 Revenue from contracts with customers. Income from royalties is
recognised in the income statement in accordance with the invoices to be submitted by the licensees. In
certain cases, values must be estimated in order to permit accounting on an accrual basis. Commission
income is invoiced if the underlying purchase transaction is classified as realised.
ADVERTISING AND PROMOTIONAL EXPENSES
Advertising expenses are recognised in the income statement at the time they are incurred. In general,
promotional expenses stretching over several years are recognised as an expense over the contractual term
on an accrual basis. Any expenditure surplus exceeding the economic benefit that results from this
allocation of expenses after the balance sheet date is recognised in the financial statements in the form of
an impairment of assets and, if necessary, a provision for anticipated losses. If promotional and advertising
contracts provide for additional payments when predefined targets are achieved (e.g. medals,
championships), which cannot be predicted exactly in terms of time and amount, they are recognised in full
in profit or loss at the relevant date.
FINANCIAL RESULT
The financial result includes interest income from financial investments and interest expenses from loans,
along with interest income and expenses in connection with derivative financial instruments. Financial
results also include interest expenses from lease liabilities as well as discounted, non-current liabilities
associated with acquisitions and those arising from the valuation of pension commitments, in addition to
interest income from finance leases.
Exchange rate effects that can be directly allocated to an underlying transaction are shown in the respective
income statement item.
INCOME TAXES
Current income taxes are determined in accordance with the tax regulations of the respective countries
where the individual Group companies conduct their operations.
PUMA management regularly assesses individual tax issues to determine whether there is scope for
interpretation in view of existing tax regulations. If appropriate, these issues are taken into account in
income tax liabilities or deferred taxes. The income tax assessment is generally carried out at the level of
the individual case, taking into account any possible interactions. Appropriate balance sheet provisions have
been made for potential risks from uncertain tax positions, taking into account IFRIC 23.
DEFERRED TAXES
Deferred taxes resulting from temporary valuation differences between the IFRS and tax balance sheets of
individual Group companies and from consolidation procedures, which are levied by the same taxation
authority and can be netted, are charged to each taxable entity and recognised either as deferred tax assets
or deferred tax liabilities.
Deferred tax assets may also include claims for tax reductions that result from the expected utilisation of
existing losses carried forward to subsequent years and which is likely to materialise. Deferred tax assets
or liabilities may also result from accounting treatments that do not affect the income statement.
PUMA Annual Report 2023
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Deferred tax assets are recognised only to the extent that the respective tax advantage is likely to
materialise.
ESTIMATION UNCERTAINTY
The preparation of the consolidated financial statements requires some assumptions and estimates that
have an impact on the measurement and presentation of the recognised assets and liabilities, income and
expenses, and contingent liabilities. The assumptions and estimates are based on premises, which in turn
are based on currently available information. In individual cases, the actual values may deviate from the
assumptions and estimates made. Consequently, future periods involve a risk of adjustment to the carrying
amount of the assets and liabilities concerned. If the actual development differs from the expectation, the
premises and, if necessary, the carrying amounts of the relevant assets and liabilities are adjusted with an
effect on profit or loss.
All assumptions and estimates are continuously reassessed. They are based on historical experiences and
other factors, including expectations regarding future global and industry-related trends that appear
reasonable under the current circumstances. Assumptions and estimates mainly relate to the valuation of
goodwill and trademarks, inventories, liabilities from refund obligations, taxes and leases in which PUMA is
the lessee. The most significant forward-looking assumptions and sources of estimation and uncertainty as
of the reporting date concerning the above-mentioned items are discussed below.
Goodwill and brands
A review of the impairment of goodwill is based on the calculation of the value in use as a leading valuation
concept. In order to calculate the value in use, the Group must estimate the future cash flows from those
cash-generating units to which the goodwill is allocated. To this end, the data used were from the three-
year plan, which is based on forecasts of the overall economic development and the resulting industry-
specific consumer behaviour. Another key assumption concerns the determination of an appropriate
interest rate for discounting the cash flow to present value (discounted cash flow method). The relief from
royalty-method is used to value brands. See chapter 11 for further details, in particular regarding the
assumptions used for the calculation.
Inventories
Inventories are measured at acquisition or manufacturing cost or at the lower net realisable values derived
from the selling price at the balance sheet date. Value adjustments are adequately recorded, depending on
age, seasonality and realisable market prices. Further details on the inventory valuation are provided in
chapter 4.
Liabilities from refund obligations
The Group recognises sales from the sale of sporting goods. The sales are measured at fair value of the
consideration to which the Group expects to be entitled from the contract with customers, taking into
account returns, discounts and rebates. As customers have the opportunity to exchange goods under
certain conditions and in accordance with the contractual agreements, the amount of expected return
deliveries is estimated on the basis of experience. The accrual of sales takes place via the liability from
refund obligations.
Taxes
Tax items are determined taking into account the various prevailing local tax laws and the relevant
administrative opinions and, due to their complexity, may be subject to different interpretations by persons
subject to tax on the one hand and the tax authorities on the other hand. Differing interpretations of tax laws
may result in subsequent tax payments for past years; these are included based on the assessment of the
management, using the most probable amount or the expected value for the individual case.
The recognition of deferred taxes requires that estimates and assumptions be made concerning future tax
planning strategies as well as expected dates of occurrence and the amount of future taxable income. The
taxable income from the relevant corporate planning is derived for this assessment. It takes into account
PUMA Annual Report 2023
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301
the past financial position and the business development expected in the future. Deferred tax assets are
recorded in the event of companies incurring a loss only if it is highly probable that future positive results
will be achieved. See Chapter 8 for further information.
PUMA as lessee
The measurement of lease liabilities under leases in which PUMA is the lessee is based on assumptions for
the discount rates used, the lease term and the determination of fixed lease payments. To determine the
present value of future minimum lease payments, PUMA uses country- and currency-specific interest rates
on borrowings with compatible terms. In addition to the basic lease period, the Group includes extension
options in the determination of the lease term if management is sufficiently certain that such options will be
exercised after taking into account all facts and circumstances. The fixed lease payments also include firmly
agreed upon minimum amounts for agreements with a predominantly variable lease amount.
DISCRETIONARY DECISIONS
The preparation of the consolidated financial statements requires discretionary decisions relating to the
application of accounting methods and the amounts of assets, liabilities, income and expenses reported.
Information on the application of accounting policies that have the most material impact on the amounts
recorded in the financial statements can be found in the following notes:
Evaluation of the control of companies with non-controlling interests
The determination as to whether the Group controls the companies with non-controlling interests is
presented in chapter 28, Information on non-controlling interests.
PUMA as lessee
The accounting for leases in which PUMA is the lessee includes discretionary decisions, in particular in
relation to the term of the lease agreements with regard to determining whether the exercise of extension
options is sufficiently certain.
Some real estate leases contain extension options that can only be exercised by PUMA and not by the lessor.
If possible, the Group seeks to include extension options when concluding new leases in order to ensure
operational flexibility. On the date of provision, the Group assesses whether it is sufficiently certain that the
extension options will be exercised. The assessment is carried out individually for each contract and takes
into account the amount of the company's own investments and the possibility of changing macroeconomic
conditions in the future. If significant events or significant changes occur during the term of the contract
that are within PUMA's control, it will be reassessed as to whether it is sufficiently certain that the extension
option will be exercised.
Significant discretionary decisions are made in the subsequent valuation of rights of use for retail stores in
the context of assessing the existence of an impairment and determining the impairment requirement.
Among other things, assumptions are made about the duration of the lease, the future economic
development and profitability of the retail stores, and also the underlying interest rate.
PUMA Annual Report 2023
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NOTES TO THE CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
3. CASH AND CASH EQUIVALENTS
As of 31 December 2023, the Group has € 552.9 million (previous year: € 463.1 million) in cash and cash
equivalents. This includes bank balances, including short-term financial investments with an original term
of up to three months. The average effective interest rate of the financial investments was 1.1% (previous
year: 1.7%) for countries without hyperinflation. In countries with hyperinflation, the average effective
interest rate of financial investments was 40.9% (previous year: 33.4%). Due to currency exchange controls,
transfer restrictions of € 45.6 million (previous year: € 93.3 million) were placed on the cash and cash
equivalents reported.
4. INVENTORIES
Inventories are allocated to the following main groups:
↗ T.11 INVENTORIES (in € million)
2023
2022
Goods/inventory and finished goods
Footwear
625.9
750.2
Apparel
420.8
519.0
Accessories/Other
216.0
266.4
Raw materials, consumables and supplies
34.9
46.8
Prepayments made
2.9
3.2
Goods in transit
458.7
592.6
Inventory adjustments related to returns
45.2
66.9
Total
1,804.4
2,245.1
The raw materials, consumables and supplies mainly relate to raw materials for the production of golf clubs
and footwear.
The table shows the carrying amounts of the inventories net of value adjustments. Of the value adjustments
in the amount of € 157.1 million (previous year: € 217.0 million) approx. 64.3% (previous year: approx. 67.5%)
were recognised as an expense under cost of sales in financial year 2023. The volume of inventories
recorded as an expense during the period mainly includes the cost of sales shown in the consolidated
income statement.
The inventory adjustments related to returns represents the historical acquisition or production costs of the
inventories for which a return is expected.
PUMA Annual Report 2023
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5. TRADE RECEIVABLES
The trade receivables are broken down as follows:
↗ T.12 TRADE RECEIVABLES (in € million)
2023
2022
Trade receivables, gross
1,183.4
1,122.8
Less provision for risks
-65.0
-57.9
Trade receivables, net
1,118.4
1,064.9
The change in the provision for risks for financial assets in the "trade receivables" class measured at
amortised cost relates to receivables in connection with revenues from contracts with customers and has
developed as follows:
↗ T.13 CHANGE OF RISK PROVISIONS FOR TRADE RECEIVABLES (in € million)
2023
2022
Status of provision for risks as of 1 January
57.9
58.7
Exchange rate differences
-1.6
0.4
Additions
26.7
20.3
Utilization
-3.8
-5.6
Reversals of unused provision for risks
-14.3
-15.8
Status of provision for risks as of 31 December
65.0
57.9
The age structure of the trade receivables is as follows:
↗ T.14 AGE STRUCTURE 2023 (in € million)
overdue
2023
Total
Not due
0-30
days
31-90
days
90-180
days
Over 180
days
Gross carrying amount -
Trade receivables
1,183.4
952.3
92.4
83.4
14.1
41.4
Provision for risks
-65.0
-16.4
-4.0
-8.2
-4.5
-31.9
Net carrying amount -
Trade receivables
1,118.4
935.8
88.4
75.2
9.6
9.5
Expected loss rate
1.7%
4.3%
9.8%
32.0%
77.1%
PUMA Annual Report 2023
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304
↗ T.15 AGE STRUCTURE 2022 (in € million)
overdue
2022
Total
Not due
0-30
days
31-90
days
90-180
days
Over 180
days
Gross carrying amount -
Trade receivables
1,122.8
986.7
58.5
26.4
11.6
39.7
Provision for risks
-57.9
-21.2
-3.7
-2.7
-2.7
-27.6
Net carrying amount -
Trade receivables
1,064.9
965.5
54.8
23.7
8.9
12.1
Expected loss rate
2.1%
6.3%
10.2%
23.6%
69.6%
With respect to the net carrying amounts of trade receivables, PUMA assumes that the debtors will satisfy
their payment obligations or that, in the event of a default, the net carrying amount will be covered by
existing credit insurance. There are no significant risk concentrations as the customer base is very broad
and there are no correlations.
6. OTHER CURRENT FINANCIAL ASSETS
Other current financial assets are broken down as follows:
↗ T.16 OTHER CURRENT FINANCIAL ASSETS (in € million)
2023
2022
Fair value of derivative financial instruments
34.5
115.9
Lease receivables
14.9
0.0
Other financial assets
45.6
21.6
Total
94.9
137.4
The amount shown is due within one year. The fair value corresponds to the carrying amount.
PUMA Annual Report 2023
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7. OTHER CURRENT ASSETS
Other current assets are broken down as follows:
↗ T.17 OTHER CURRENT ASSETS (in € million)
2023
2022
Prepaid expense relating to the subsequent period
98.3
86.2
Other receivables
172.1
149.8
Total
270.4
235.9
The amount shown is due within one year. The fair value corresponds to the carrying amount.
Other receivables mainly comprise receivables relating to VAT of € 98.9 million (previous year: € 97.9 million)
and other taxes of € 25.6 million (previous year: € 30.3 million).
8. DEFERRED TAXES
Deferred taxes relate to the items shown below:
↗ T.18 DEFERRED TAXES
1 (in € million)
2023
2022
Tax loss carryforwards
76.9
57.5
Inventories
74.5
90.8
Remaining current assets
13.5
13.5
Non-current assets
56.3
37.6
Lease liabilities (current and non-current)
290.8
289.6
Provisions and other liabilities
118.1
142.6
Deferred tax assets (before netting)
630.1
631.6
Current assets
17.4
37.6
Intangible assets
42.1
44.1
Right-of-use assets
258.2
260.5
Remaining non-current assets
24.6
32.4
Provisions and other liabilities
4.1
4.0
Deferred tax liabilities (before netting)
346.4
378.5
Deferred tax assets, net
283.7
253.1
1
In order to better provide decision-relevant information, the data – including the previous year's figures – has been
adjusted.
As of 31 December 2023, tax losses carried forward amounted to a total of € 447.9 million (previous year:
€ 360.7 million). Deferred tax assets were recognised for these items in the amount at which the associated
tax advantages are likely to be realised in the form of future profits for income tax purposes. In financial
year 2023, no deferred tax items were recognised for the losses carried forward in the amount of
PUMA Annual Report 2023
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306
€ 102.9 million (previous year: € 93.5 million), of which € 94.5 million (previous year: € 88.2 million) are
vested. The remaining tax losses carried forward, for which no deferred tax items were recognised, in the
amount of € 8.3 million (previous year: € 5.3 million) will expire within the next six years
1.
In addition, no deferred tax items were recognised for temporary differences in the amount of € 27.0 million
(previous year: € 22.6 million) because they were not expected to be realised as of the balance sheet date.
For Group companies that achieved a negative tax result in this or the previous financial year, a total of
deferred tax assets in the amount of € 157.1 million were recognised after deduction of any deferred tax
liabilities (previous year: € 70.0 million) as sufficiently positive tax results can be expected in the future on
the basis of the relevant projections.
No deferred taxes on retained profits at subsidiaries were recognised where these gains are to be
reinvested on an ongoing basis and there is no intention to make a distribution in this respect.
Deferred tax assets and liabilities are netted if they relate to a taxable entity and can in fact be netted.
Accordingly, they are shown in the balance sheet as follows:
↗ T.19 DEFERRED TAX ASSETS AND LIABILITIES (in € million)
2023
2022
Deferred tax assets
296.1
295.0
Deferred tax liabilities
12.4
42.0
Deferred tax assets, net
283.7
253.1
The changes in deferred tax assets (net) were as follows:
↗ T.20 MOVEMENT OF DEFERRED TAXES (in € million)
2023
2022
Deferred tax assets, net as of 1 January
253.1
231.1
Recognition in the income statement
22.8
25.1
Adjustment related to remeasurements of the net defined benefit liability,
recognised in other comprehensive income
0.2
-2.5
Adjustment related to the market value of hedging contracts,
recognised in other comprehensive income
10.1
-0.7
Currency exchange effects
-2.5
0.0
Deferred tax assets, net as of 31 December
283.7
253.1
1 In order to better provide decision-relevant information, the data – including the previous year's figures – has been adjusted.
PUMA Annual Report 2023
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307
9. PROPERTY, PLANT AND EQUIPMENT
The development of property, plant and equipment is shown in the following tables:
↗ T.21 MOVEMENTS PROPERTY, PLANT & EQUIPMENT 2023 (in € million)
Real Estate
Technical
equipment and
machines
Other equipment,
factory and office
equipment
Payments on
account and assets
under construction
Total
Purchase costs as of
1 January 2023
175.2
170.8
706.2
75.1
1,127.3
Additions
23.9
16.6
118.4
66.5
225.4
Disposals
-4.8
-0.4
-41.0
-2.8
-49.0
Transfers
0.1
39.7
2.2
-42.3
-0.4
Currency changes
-5.0
-4.1
-32.6
-1.8
-43.4
As of 31 December 2023
189.5
222.5
753.2
94.8
1,260.0
Accumulated
depreciation as of
1 January 2023
-54.5
-37.3
-443.2
-0.1
-535.2
Depreciation
-6.2
-15.0
-84.4
0.0
-105.7
Disposals
3.5
0.4
38.6
0.0
42.5
Transfers
0.0
-0.3
-0.0
0.0
-0.3
Currency changes
1.2
2.5
20.3
0.1
24.2
As of 31 December 2023
-56.0
-49.7
-468.7
0.0
-574.4
Net carrying amount as
of 31 December 2023
133.5
172.8
284.6
94.8
685.6
PUMA Annual Report 2023
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↗ T.22 MOVEMENTS PROPERTY, PLANT & EQUIPMENT 2022 (in € million)
Real Estate
Technical
equipment and
machines
Other equipment,
factory and office
equipment
Payments on
account and assets
under construction
Total
Purchase costs as of
1 January 2022
168.6
145.2
574.1
42.1
930.0
Additions
0.9
6.8
112.7
79.5
199.9
Disposals
-0.2
-0.5
-45.0
-2.4
-48.1
Transfers
-4.2
12.8
44.9
-44.8
8.5
Currency changes
10.1
6.5
19.6
0.8
37.0
As of 31 December 2022
175.2
170.8
706.2
75.1
1,127.3
Accumulated
depreciation as of
1 January 2022
-47.0
-19.5
-391.1
0.0
-457.6
Depreciation
-6.0
-9.0
-78.7
0.0
-93.7
Disposals
0.1
0.4
43.6
0.0
44.2
Transfers
0.1
-4.1
-0.0
-0.1
-4.2
Impairment
0.0
0.0
-0.6
0.0
-0.6
Currency changes
-1.7
-5.2
-16.4
0.0
-23.2
As of 31 December 2022
-54.5
-37.3
-443.2
-0.1
-535.2
Net carrying amount as
of 31 December 2022
120.7
133.5
263.1
75.0
592.2
Investment properties are included under real estate within property, plant and equipment with a carrying
amount of € 21.1 million (previous year: € 0.0 million) as of 31 December 2023. The fair value of investment
properties as of 31 December 2023 is € 23.3 million (previous year: € 0.0 million). This was determined by
external, independent experts who have relevant professional qualifications and current experience with the
location and type of properties to be valued. The fair value was determined on the basis of the market-
comparative approach, which reflects the most recent transaction prices for similar properties.
The rental income generated by the Group from investment properties amounted to € 0.6 million in the
financial year (previous year: € 0.0 million). Direct operating expenses for investment properties, which
generated rental income in the financial year, amounted to € 0.0 million (previous year: € 0.0 million).
PUMA Annual Report 2023
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10. LEASES
PUMA AS LESSEE
The Group rents and leases offices, warehouses, facilities, technical equipment and machinery, motor
vehicles and sales rooms for its own retail business. As a rule, the lease agreements have a term of
between one and fifteen years. Some agreements include renewal options and price adjustment clauses.
The carrying amounts for right-of-use assets recognised in the balance sheet relate to the following asset
classes:
↗ T.23 RIGHT-OF-USE ASSETS 2023 (in € million)
Real Estate –
Retail stores
Real Estate –
Warehouses & offices
Others
(technical equipment
and machines and
vehicles)
Total
Depreciation
107.1
89.7
12.2
209.0
Additions
174.1
71.9
14.3
260.3
Net carrying amount as of
31 December 2023
464.2
557.7
65.7
1,087.7
↗ T.24 RIGHT-OF-USE ASSETS 2022 (in € million)
Real Estate –
Retail stores
Real Estate –
Warehouses & offices
Others
(technical equipment
and machines and
vehicles)
Total
Depreciation
110.1
82.1
10.6
202.8
Additions
187.1
188.8
29.5
405.4
Net carrying amount as of
31 December 2022
430.9
613.1
67.3
1,111.3
The following lease liabilities result:
↗ T.25 LEASE LIABILITIES (in € million)
2023
2022
Current lease liabilities
212.4
200.2
Non-current lease liabilities
1,020.0
1,030.3
Total
1,232.4
1,230.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
310
The amounts recognised in the income statement are as follows:
↗ T.26 RECOGNISED IN INCOME STATEMENT (in € million)
2023
2022
Depreciation of right-of-use assets incl. impairment losses and reversal of
impairment losses (included in operating expenses)
202.8
228.1
Interest expense (included in financial expenses)
46.8
38.6
Expenses short-term leases
(included in operating expenses)
11.3
10.1
Expenses leases of low-value assets
(included in operating expenses)
1.2
1.0
Expenses variable lease payments
(included in operating expenses)
35.4
29.7
Total
297.5
307.6
Variable lease payments are incurred in connection with the Group's own retail stores. These are based on
the sales amount and are therefore dependent on the overall economic development.
Total cash outflows from lease liabilities in 2023 amounted to € 254.8 million (previous year: € 228.7 million).
Due to reduced earnings prospects based on updated financial planning and estimates as well as retail
store closures, impairment expenses in the total amount of € 5.7 million were recorded for the right of use
of assets in connection with PUMA's own retail stores in financial year 2023 (previous year: € 25.4 million).
To determine the impairment, the recoverable amount was calculated for the individual retail stores. This
amounted to € 65.3 million for impaired retail stores (previous year: € 111.4 million). In the financial year,
impairment reversals in the amount of € 11.9 million (previous year: € 0.0 million) were recorded for retail
stores. There were no impairment losses or impairment reversals in the other categories of right-of-use
assets.
In 2023, PUMA entered into lease agreements that had not yet commenced by year-end. As a result, no
lease liabilities and corresponding right-of-use assets had been recognised as of 31 December 2023. Future
lease payments in connection with these agreements amount to € 2.0 million (previous year: € 2.6 million)
for the next year, € 28.2 million for years two to five (previous year: € 13.7 million) and € 48.5 million for the
subsequent period (previous year: € 8.7 million). The lease terms for these are up to 15 years.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
311
The maturity analysis of lease liabilities is as follows:
↗ T.27 MATURITY ANALYSIS OF LEASE LIABILITIES (in € million)
2023
2022
Due within one year
255.8
234.0
Due between one and five years
679.6
665.3
Due after five years
510.4
541.2
Total (undiscounted)
1,445.8
1,440.6
Interest expense (not yet realised)
-213.4
-210.2
Total
1,232.4
1,230.4
PUMA AS LESSOR
PUMA rents out properties owned and leased as a lessor. From the lessor's point of view, these (sub)leases
are classified as operating or finance leases. In the previous year, PUMA did not rent out any properties.
The net investments from finance leases are shown as receivables in the balance sheet and are reduced by
the repayment portion included in the lease payment. The interest portion included in the lease payment is
reported as interest income in the financial result.
The maturities of the existing receivables on lease payments against third parties classified as finance
leases are as follows:
↗ T.28 MATURITY ANALYSIS OF LEASE RECEIVABLES (in € million)
2023
Due within one year
16.8
Due between one and five years
24.8
Due after five years
4.5
Total (undiscounted)
46.1
Interest income (not yet realised)
-5.4
Provision for risks
-0.5
Total
40.2
PUMA Annual Report 2023
↗ Consolidated Financial Statements
312
The following income was recognised in the income statement in connection with leases:
↗ T.29 RECOGNISED IN INCOME STATEMENT (in € million)
2023
Operating leases
Fixed rental income
1.0
Finance leases
Variable rental income
0.4
Total rental income (included in other operating income)
1.4
Selling profit (included in other operating income)
8.0
Interest income (included in financial income)
1.2
Future lease payments from operating leases for the coming year amount to € 1.6 million (previous year:
€ 0.0 million) and to € 5.1 million for years two to five (previous year: € 0.0 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
313
11. INTANGIBLE ASSETS
Intangible Assets mainly include goodwill, intangible assets with indefinite useful lives (e.g. brands), assets
associated with the Company's own retail activities and software licenses.
The development of intangible assets is shown in the following table:
↗ T.30 MOVEMENTS INTANGIBLE ASSETS 2023 (in € million)
Goodwill
Intangible assets
with an indefinite
useful life
Other
intangible assets
Total
Purchase costs as of 1 January 2023
289.3
151.0
341.0
781.2
Additions
0.0
0.0
74.2
74.2
Disposals
0.0
0.0
-16.8
-16.8
Transfers
0.0
0.0
0.6
0.6
Currency changes
-4.0
-4.6
-1.5
-10.1
As of 31 December 2023
285.3
146.3
397.5
829.1
Accumulated depreciation as of
1 January 2023
-46.6
-17.6
-210.5
-274.7
Depreciation
0.0
0.0
-37.0
-37.0
Disposals
0.0
0.0
11.9
11.9
Transfers
0.0
0.0
-0.1
-0.1
Currency changes
0.4
0.0
1.3
1.6
As of 31 December 2023
-46.3
-17.6
-234.5
-298.2
Net carrying amount as of
31 December 2023
239.0
128.7
163.0
530.8
PUMA Annual Report 2023
↗ Consolidated Financial Statements
314
↗ T.31 MOVEMENTS INTANGIBLE ASSETS 2022 (in € million)
Goodwill
Intangible assets
with an indefinite
useful life
Other
intangible assets
Total
Purchase costs as of 1 January 2022
291.5
143.2
276.6
711.4
Additions
0.0
0.0
64.0
64.0
Disposals
0.0
0.0
-2.4
-2.4
Transfers
0.0
0.0
1.3
1.3
Currency changes
-2.2
7.8
1.4
6.9
As of 31 December 2022
289.3
151.0
341.0
781.2
Accumulated depreciation as of
1 January 2022
-46.8
-17.6
-175.1
-239.5
Depreciation
0.0
0.0
-36.3
-36.3
Disposals
0.0
0.0
2.2
2.2
Transfers
0.0
0.0
-0.2
-0.2
Currency changes
0.2
0.0
-1.1
-1.0
As of 31 December 2022
-46.6
-17.6
-210.5
-274.7
Net carrying amount as of
31 December 2022
242.7
133.4
130.4
506.5
The item Other intangible assets includes advance payments in the amount of € 21.6 million (previous year:
€ 5.6 million).
The current amortisation of intangible assets in the amount of € 37.0 million (previous year: € 36.3 million) is
included in the other operating expenses. Of this, € 11.5 million relate to sales and distribution expenses
(previous year: € 7.7 million), € 0.1 million to expenses for product management/merchandising (previous
year: € 0.1 million), € 0.0 to development expenses (previous year: € 1.9 million), and € 25.3 million to
administrative and general expenses (previous year: € 26.5 million).
INFORMATION ON PLANNING ASSUMPTIONS FOR IMPAIRMENT TESTS
Goodwill and intangible assets with indefinite useful lives are not amortised according to schedule.
Impairment tests with regard to goodwill were performed in the past financial year using the discounted
cash flow method. The data from the three-year plan for the respective cash-generating unit or group of
cash-generating units was used as a basis for this. Planning on the level of the cash-generating units was
thereby derived from the PUMA Group's three-year plan. The following key assumptions have been made for
the PUMA Group plans:
Based on the basic assumptions regarding overall economic development, planning at Group level assumes
that geopolitical tensions will not increase any further. Under these conditions, we expect our business to
continue to grow profitably.
Planned sales growth is based on the good future growth prospects in the sporting goods industry and on
market share gains by PUMA. This is to be achieved, in particular, via the continued consistent
implementation of the Forever Faster corporate strategy and the increase in PUMA's brand heat.
The improvement in EBIT margin in the planning period is the result of a slight increase in gross profit
margin due to, for example, a higher share of own retail sales as a result of above-average growth of the e-
commerce distribution channel. Furthermore, the slightly weaker percentage increase of other operating
PUMA Annual Report 2023
↗ Consolidated Financial Statements
315
income and expenses compared to sales growth is also expected to contribute to the improvement of the
EBIT margin; for example, the operating requirements for planned sales growth over the coming years have
essentially been met, meaning that economies of scale can be realised.
The planning of investments and working capital is based on historical experience and is carried out in
accordance with strategic objectives.
The future tax payments are based on current tax rates in the respective country.
For periods beyond the three-year plan, an annual growth rate is determined and used to forecast future
cash flows beyond the three-year period. The assumed growth rate is based on long-term expectations of
inflation rates and does not exceed the long-term average growth rates for the business area in which the
respective cash-generating unit, or group of cash-generating units, operates.
The recoverable amount for the respective cash-generating unit or group of cash-generating units was
determined on the basis of the value-in-use. This did not result in impairment losses for any cash-
generating units.
INTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE
In connection with the Golf business unit (CPG – Cobra PUMA Golf), the Cobra brand exists as an intangible
asset with an indefinite useful life amounting to € 128.7 million (previous year: € 133.4 million). The carrying
amount of the Cobra brand is significant in comparison to the overall carrying amount of the intangible
assets with an indefinite useful life. It was assigned to the North America business segment, where the
headquarters of Cobra PUMA Golf is located. The recoverable amount of the Cobra brand was determined
using the relief from royalty-method (level 3 – see explanation in chapter 14). A discount rate of 10.6% p.a.
(previous year: 9.4% p.a.), a royalty rate of 6.0% (previous year: 8.0%) and a sustainable 2.0% growth rate
(previous year: 2.0%) was used. Cobra or CPG's three-year plan shows average revenue growth in the high
single-digit percentage range. The Management's key assumptions about improvement in the EBIT margin
in Cobra's or CPG's three-year plan are essentially in line with the fundamental assumptions in the plans at
Group level.
A reduction of the royalty rate to approximately 5.4% or a reduction of the average planned sales revenues
by approx. 10.3% would not result in any impairment requirement for the Cobra brand, and the recoverable
amount would correspond to the carrying amount.
If there is evidence that the underlying Cobra business is insufficiently profitable, the trademark is not only
valued individually using the relief from royalty-method, but the recoverable amount of the cash-generating
units to which the trademark is attributable is determined. In 2023, there were no indications of an
impairment.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
316
GOODWILL
Goodwill is allocated to the Group's identifiable groups of cash-generating units (CGUs) according to the
countries where the activities are carried out. Summarised by regions, goodwill is allocated as follows:
↗ T.32 COMPOSITION OF GOODWILL (in € million)
2023
2022
PUMA UK
1.6
1.6
Genesis
7.0
6.9
Subtotal Europe
8.7
8.5
PUMA Canada
9.7
9.9
PUMA United NA
2.0
2.1
Subtotal North America
11.7
11.9
PUMA Argentina
15.8
16.4
PUMA Chile
0.5
0.5
PUMA Mexico
12.2
10.9
Subtotal Latin America
28.5
27.8
PUMA China
2.5
2.5
PUMA Taiwan
13.3
13.7
Subtotal Greater China
15.8
16.2
PUMA Japan
35.0
38.9
Subtotal Asia/Pacific (excluding Greater China)
35.0
38.9
stichd
139.4
139.4
Total
239.0
242.7
Assumptions used in conducting the impairment tests in 2023:
↗ T.33 ASSUMPTIONS IMPAIRMENT TEST 2023
Tax rate (range)
WACC before tax
(range)
WACC after tax
(range)
Europe
19.0%
13.3%
11.1%
North America *
26.2%
12.7%
10.3%
Latin America
27.0%-35.0%
16.5%-64.1%
12.1%-51.7%
Greater China
20.0%-25.0%
12.9%-14.0%
10.5%-11.2%
Asia/Pacific (excluding Greater China) *
38.1%
16.4%
10.5%
stichd *
25.0%
13.1%
10.2%
*
The information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-
generating unit (CGU)
The tax rates used for the impairment test correspond to the actual tax rates in the respective countries.
The weighted average cost of capital (WACC) was derived on the basis of the weighted average cost of total
PUMA Annual Report 2023
↗ Consolidated Financial Statements
317
capital, taking into account a standard market capital structure (ratio of debt to equity) and including the
most important listed competitors (peer group).
In addition, a growth rate of 2.0% (previous year: 2.0%) is generally assumed. A growth rate of less than
2.0% (previous year: less than 2.0%) was applied only in justified exceptional cases, where the long-term
expectations on inflation rate for the country in which the cash-generating unit operates were lower than
the assumed growth rate; this applies, in particular, to the UK, Japan and Taiwan.
The cash-generating unit stichd includes goodwill of € 139.4 million (previous year: € 139.4 million), which is
significant in comparison to the overall carrying amount of goodwill. The recoverable amount was
determined by a value-in-use calculation with a discount rate of 10.2% p.a. (previous year: 9.4% p.a.) and a
growth rate of 2.0% (previous year: 2.0%). Stichd's three-year plan shows sales growth in the low double-
digit percentage range. In the three-year plan for stichd, a lower improvement in the EBIT margin is
expected compared to the Group, as the EBIT margin of stichd is already higher than for the Group as a
whole.
The cash-generating unit PUMA Japan includes goodwill of € 35.0 million (previous year: € 38.9 million),
which is significant in comparison to the overall carrying amount of goodwill. The recoverable amount was
determined by a value-in-use calculation with a discount rate of 10.5% p.a. (previous year: 9.4% p.a.) and a
growth rate of 1.2% (previous year: 1.0%). PUMA Japan's three-year plan shows sales growth in the high
single-digit percentage range. PUMA Japan's three-year plan shows that the company expects a strong
improvement in the EBIT margin and a return to the historical profitability level of PUMA Japan.
The following table contains the assumptions for the performance of the impairment test in the previous
year:
↗ T.34 ASSUMPTIONS IMPAIRMENT TEST 2022
Tax rate (range)
WACC before tax
(range)
WACC after tax
(range)
Europe
19.0%
12.3%-12.4%
10.4%
North America *
26.2%
11.8%
9.1%
Latin America
27.0%-34.9%
14.8%-65.4%
11.2%-58.3%
Greater China
20.0%-25.0%
12.1%-13.5%
10.0%-10.6%
Asia/Pacific (excluding Greater China) *
38.1%
14.3%
9.4%
stichd *
25.0%
12.0%
9.4%
*
The information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-
generating unit (CGU)
PUMA Annual Report 2023
↗ Consolidated Financial Statements
318
12. OTHER NON-CURRENT ASSETS
Other non-current financial and non-financial assets consist of:
↗ T.35 OTHER NON-CURRENT ASSETS (in € million)
2023
2022
Investments
21.2
21.7
Fair value of derivative financial instruments
1.4
2.5
Lease receivables
25.3
0.0
Other financial assets
35.7
34.2
Total of other non-current financial assets
83.6
58.4
Other non-current non-financial assets
25.6
8.8
Other non-current assets, total
109.1
67.2
The investments relate to the 5.32% shareholding in Borussia Dortmund GmbH & Co. Kommanditgesell-
schaft auf Aktien (BVB) with registered office in Dortmund, Germany. According to the audited IFRS
consolidated financial statements 2022/2023 of Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf
Aktien, equity as of 30 June 2023 amounted to € 282.7 million and the result of the last financial year was
€ 9.6 million.
Other financial assets mainly include rental deposits in the amount of € 31.9 million (previous year:
€ 29.8 million). The other non-current non-financial assets mainly include accruals and deferrals in
connection with promotional and advertising agreements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
319
13. LIABILITIES
The residual terms of liabilities are as follows:
↗ T.36 LIABILITIES (in € million)
2023
2022
Residual term of
Residual term of
Total
up to 1 year
1 to 5 years
over 5 years
Total
up to 1 year
1 to 5 years
over 5 years
Borrowings
572.0
145.9
426.1
0.0
327.4
75.9
251.5
0.0
Trade payables
1,499.8
1,499.8
0.0
0.0
1,734.9
1,734.9
0.0
0.0
Other liabilities*
0.0
Liabilities from other taxes
110.0
110.0
0.0
0.0
82.6
82.6
0.0
0.0
Liabilities relating to social security
10.6
10.6
0.0
0.0
10.0
10.0
0.0
0.0
Payables to employees
123.6
123.6
0.0
0.0
137.2
137.2
0.0
0.0
Liabilities from refund obligations
236.9
236.9
0.0
0.0
373.9
373.9
0.0
0.0
Liabilities from derivative financial instruments
58.2
47.7
10.5
0.0
52.4
39.5
12.9
0.0
Remaining other liabilities
45.4
43.2
2.0
0.2
54.0
51.6
2.0
0.3
Total
2,656.5
2,217.7
438.5
0.2
2,772.5
2,505.8
266.3
0.3
*
The maturity analysis on lease liabilities is presented in chapter 10.
The liabilities from refund obligations result from contracts with customers and essentially comprise obligations from customer return rights.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
320
14. FINANCIAL INSTRUMENTS
CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND ALLOCATION TO VALUATION CATEGORIES
↗ T.37 CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUE (in € million)
Measurement
categories
under IFRS 9
Carrying
amount
Fair value
Level 1
Level 2
Level 3
Carrying
amount
Fair value
Level 1
Level 2
Level 3
2023
2023
2022
2022
Assets
Cash and cash equivalents
1)AC
552.9
463.1
Trade receivables
AC
1,118.4
1,064.9
Other current financial assets
Derivatives - hedge accounting
n/a
22.8
22.8
22.8
56.1
56.1
56.1
Derivatives - no hedge accounting
2)FVPL
11.6
11.6
11.6
59.8
59.8
59.8
Lease receivables
n/a
14.9
0.0
Remaining current financial assets
AC
45.6
21.6
Other non-current financial assets
Derivatives - hedge accounting
n/a
1.4
1.4
1.4
2.5
2.5
2.5
Investments
3)FVOCI
21.2
21.2
21.2
21.7
21.7
21.7
Lease receivables
n/a
25.3
0.0
Remaining non-current financial assets
AC
35.7
34.2
Liabilities
Current borrowings
Bank liabilities
AC
15.2
15.9
Promissory note loans
AC
130.8
124.9
124.9
60.0
59.3
59.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
321
Measurement
categories
under IFRS 9
Carrying
amount
Fair value
Level 1
Level 2
Level 3
Carrying
amount
Fair value
Level 1
Level 2
Level 3
2023
2023
2022
2022
Trade payables
AC
1,499.8
1,734.9
Current lease liabilities
n/a
212.4
200.2
Other current financial liabilities
Derivatives - hedge accounting
n/a
22.6
22.6
22.6
23.6
23.6
23.6
Derivatives - no hedge accounting
2)FVPL
25.1
25.1
25.1
15.9
15.9
15.9
Remaining current financial liabilities
AC
30.9
36.5
Non-current borrowings (promissory note loans)
AC
426.1
427.4
427.4
251.5
239.5
239.5
Non-current lease liabilities
n/a
1,020.0
1,030.3
Other non-current financial liabilities
Derivatives - hedge accounting
n/a
10.5
10.5
10.5
12.9
12.9
12.9
Remaining non-current financial liabilities
AC
0.9
1.0
Total financial assets at amortised cost
1,752.6
1,583.8
Total financial liabilities at amortised cost
2,103.6
2,099.8
Total financial assets at fair value through profit
or loss
11.6
59.8
Total financial liabilities at fair value through
profit or loss
25.1
15.9
Total financial assets at FVOCI
21.2
21.7
1) AC = at amortised cost
2) FVPL = fair value through PL
3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income
PUMA Annual Report 2023
↗ Consolidated Financial Statements
322
Financial instruments that are measured at fair value in the balance sheet were determined using the
following hierarchy:
Level 1: Use of prices quoted on active markets for identical assets or liabilities.
Level 2: Use of input factors that do not involve the quoted prices stated under level 1, but can be observed
for the asset or liability either directly (i.e. as the price) or indirectly (i.e. derived from the price).
Level 3: Use of factors for the valuation of the asset or liability that are based on non-observable market
data.
Reclassification between different levels of the fair value hierarchy are recorded at the end of the reporting
period in which the change occurred.
The fair value of the investments held for strategic reasons only refers to equity instruments of the category
"fair value through OCI" (FVOCI) and is determined on the basis of level 1. The market values of the
derivative assets and liabilities as well as the fair value of the promissory note loans were determined in
accordance with level 2.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
323
The following table shows the measurement techniques used for determining Level 2 fair values for
financial instruments.
↗ T.38 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE - LEVEL 2
Type
Measurement technique
Material, non-
observable input
factors
Connection between
material, non-
observable input
factors and fair value
measurement
Currency forward
transactions
The fair values are determined on the basis of
current market parameters, i.e., reference prices
observable on the market, taking into account
forward premiums and discounts. The discounted
result of the comparison of the forward price on the
reporting date with the forward price of the
valuation date is included in the measurement.
The fair values are also checked for the
counterparty's non-performance risk. In doing this,
PUMA calculates credit value adjustments (CVA) or
debt value adjustments (DVA) on the basis of an
up/down method, taking current market information
into account, in particular the creditworthiness of
the company's business partners. No material
deviations were found, so that no adjustments were
made to the fair value determined.
Not applicable
Not applicable
Currency options
The valuation is based on Garman Kohlhagen model,
an extended version of the Black Scholes model.
Not applicable
Not applicable
Promissory note
loans
The valuation takes into account the cash value of
expected payments, discounted using a risk-
adjusted discount rate.
Not applicable
Not applicable
Interest options
The valuation is based on the Black Scholes model.
Not applicable
Not applicable
Of the fair value of the derivatives with a hedge relationship with positive market values of € 24.2 million
(previous year: € 58.6 million), € 24.5 million (previous year: € 65.9 million) related to the valuation of the
spot component. Of the fair value of the derivatives with a hedge relationship with negative market values of
€ 33.1 million (previous year: € 36.5 million), € 40.7 million (previous year: € 46.9 million) related to the
valuation of the spot component.
Cash and cash equivalents, trade receivables and other receivables have short maturities. Accordingly, as of
the reporting date, the carrying amount approximates fair value. Receivables are stated at nominal value,
taking into account deductions for default risk.
The fair values of other financial assets correspond to their carrying amount, as the interest calculation
occurs at the prevailing market interest rates on the balance sheet date. Other (current and non-current)
financial assets include € 40.3 million (previous year: € 37.8 million) that were pledged as rental deposits at
usual market rates.
Trade payables have short residual maturities; their carrying amounts therefore approximate fair value.
The remaining financial liabilities have short residual maturities; the recognised amounts therefore
approximate fair value.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
324
NET RESULT BY VALUATION CATEGORIES
The following table shows the net result by valuation category:
↗ T.39 NET GAINS/LOSSES FROM FINANCIAL INSTRUMENTS (in € million)
2023
2022
Financial assets at amortised cost (AC)
5.8
26.0
Financial liabilities at amortised cost (AC)
-89.3
-7.1
Derivatives without hedging relationship measured at fair value through profit or loss
(FVPL)
7.7
-47.6
Financial assets measured at fair value through other comprehensive income (FVOCI)
-0.5
-3.4
The net result was determined by taking into account interest income and expense, currency exchange
effects, changes in provisions for risks as well as gains and losses from disposal. It also includes effects
from the fair value measurement of derivatives without a hedging relationship.
The net result includes interest income of € 36.6 million (previous year: € 31.8 million) and interest expenses
of € 47.7 million (previous year: € 15.2 million) according to the effective interest method.
General administrative expenses include changes in risk provisions for receivables.
DISCLOSURES RELATING TO FINANCIAL RISKS
The PUMA Group is exposed to the following risks from the use of financial instruments:
• Default risk
• Liquidity risk
• Market risk
These risks and the principles of risk management are explained below.
PRINCIPLES OF RISK MANAGEMENT
The Management Board of PUMA SE is responsible for developing and monitoring risk management in the
PUMA Group. To this end, the Management Board has set up a Risk Management Committee that is
responsible for designing, reviewing and adapting the risk management system. The Risk Management
Committee regularly reports to the Management Board on its work.
The guidelines for the risk management system define the responsibilities, tasks and processes of the risk
management system. The guidelines for the risk management system and the risk management system
itself are reviewed regularly in order to be able to pick up on any changes in market conditions and PUMA's
activities and incorporate them accordingly.
The Audit Committee, on the one hand, monitors the Management Board's compliance with the guidelines
and the Group risk management processes. On the other hand, the Audit Committee monitors the
effectiveness of the risk management system with regard to the risks to which the PUMA Group is exposed.
The Internal Audit department supports the Audit Committee in its monitoring tasks. To this end, regular
audits and ad hoc audits are also carried out by the Internal Audit department. Their results are reported
directly to the Audit Committee.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
325
DEFAULT RISK
Default risk is the risk of financial losses if a customer or party to a financial instrument fails to meet its
contractual obligations. Default risk arises in principle from trade receivables and from other contractual
financial obligations of the counterparty, such as bank deposits and derivative financial instruments.
Without taking into account any existing credit insurance policies or other guarantees received, the
maximum default risk is equal to the carrying amount of the financial assets.
At the end of financial year 2023, there was no relevant concentration of default risk by customer type or
region. Default risk is mainly influenced by individual customer characteristics. In accordance with our
credit guidelines, new customers are checked for creditworthiness before we offer them our regular
payment and delivery terms. In addition, we set specific receivables limits for each customer. In particular,
the international credit insurance programme that PUMA has concluded for all major subsidiaries
contributes to risk mitigation. The creditworthiness of our customers and the limits on receivables are
monitored on an ongoing basis, which also includes requests for individual credit limits from credit
insurance providers for all customers who have external accounts that exceed a certain value limit. The
credit insurer's response to such credit limit requests always includes information on the creditworthiness.
Customers with a credit rating that does not meet the minimum requirements set may, as a rule, only
acquire products against advance payment.
Further activities to reduce default risk include retention of title clauses, and also in individual cases the
selective sale of trade receivables (without recourse) and the obtaining of bank guarantees or parent
company guarantees for our customers.
At the end of the financial year 2023, no individual customers accounted for more than 10% of trade
receivables.
The central Treasury department has a comprehensive overview of the banks involved in currency hedging
instruments and the management of cash and cash equivalents. Business with banks is focused on core
banks with the appropriate credit rating (currently a minimum rating of BBB+ or better), while maximum
risk amounts are specified for banks that have also been engaged in addition to this. The counterparty risks
resulting from this are reviewed at least once every six months.
PUMA held derivative financial instruments with a positive market value of € 35.8 million in 2023 (previous
year: € 118.3 million). The maximum default risk for an individual bank from such assets amounted to
€ 7.5 million (previous year: € 24.8 million).
In accordance with IFRS 7, the following table contains further information on the offsetting options for
derivative financial assets and liabilities. Most agreements between financial institutions and PUMA include
a mutual right to offsetting; the right to offsetting is only enforceable in the event of the default of a business
partner. Therefore, the criteria for offsetting in the balance sheet are not met.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
326
The carrying amounts of the derivative financial instruments affected by the aforementioned offsetting
agreements are shown in the following table:
↗ T.40 OFFSETTING POSSIBILITIES OF DERIVATIVE FINANCIAL INSTRUMENTS (in € million)
2023
2022
Assets
Gross amounts of financial assets recognised in the balance sheet
35.8
118.3
Financial instruments that qualify for offsetting
0.0
0.0
= Net book value of financial assets
35.8
118.3
Offsettable on the basis of framework agreements
-34.5
-50.6
Total net value of financial assets
1.3
67.7
2023
2022
Liabilities
Gross amounts of financial liabilities recognised in the balance sheet
58.2
52.4
Financial instruments that qualify for offsetting
0.0
0.0
= Net book value of financial liabilities
58.2
52.4
Offsettable on the basis of framework agreements
-34.5
-50.6
Total net value of financial liabilities
23.7
1.8
LIQUIDITY RISK
Liquidity risk is the risk that the Group may not be able to meet its financial liabilities by delivering cash or
other financial assets in accordance with the agreement. The objective of the Group in managing liquidity is
to ensure that, as far as possible, sufficient cash and cash equivalents are always available in order to meet
the payment obligations upon maturity, under both normal and strained conditions.
PUMA aims to maintain the amount of cash, cash equivalents and fixed loan commitments at a level that
covers the effects of an assumed worst-case scenario. This scenario is based on the events and financial
impact of the COVID-19 crisis in Q2 2020, which must be covered accordingly.
PUMA has confirmed credit lines amounting to a total of € 1,552.8 million (previous year: € 1,271.0 million), of
which € 986.1 million had not been used as at 31 December 2023 (previous year: € 943.7 million).
No financial liabilities were utilised from credit lines granted only until further notice.
The effective interest rate of the financial liabilities ranged from 0.0% to 1.3% (previous year: 0.0% to 0.9%).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
327
The following table shows the future cash outflows from the financial liabilities existing as at the reporting
date, as well as the contractual cash flows in connection with derivatives with a negative market value.
These are non-discounted gross amounts including expected interest payments, but exclude presentation of
the effects of offsetting:
↗ T.41 CONTRACTUAL CASH FLOWS FROM FINANCIAL LIABILITIES 2023 (in € million)
Total
2024
2025
2026 et
seq.
Non-derivative financial liabilities
Borrowings
634.0
166.9
85.1
382.0
Trade payables
1,499.8
1,499.8
Other liabilities
31.8
30.9
0.5
0.4
Derivative financial liabilities
47.0
43.8
2.2
1.0
Cash inflow derivative financial liabilities
-2,876.6
-2,397.1
-479.5
Cash outflow derivative financial liabilities
2,923.6
2,440.8
481.8
1.0
The following values were determined for the previous year:
↗ T.42 CONTRACTUAL CASH FLOWS FROM FINANCIAL LIABILITIES 2022 (in € million)
Total
2023
2024
2025 et seq.
Non-derivative financial liabilities
Borrowings
332.7
78.3
126.6
127.8
Trade payables
1,734.9
1,734.9
Other liabilities
37.5
36.5
0.8
0.2
Derivative financial liabilities
34.5
34.2
0.3
Cash inflow derivative financial liabilities
-1,905.7
-1,303.9
-601.8
Cash outflow derivative financial liabilities
1,940.2
1,338.1
602.1
1) The previous year's figures have been adjusted
MARKET RISK
Market risk is the risk that market prices, such as exchange rates, share prices or interest rates, may
change, thereby affecting the income of the Group or the value of the financial instruments held.
The aim of market risk management is to manage and control market risk within acceptable margins while
optimising returns.
To manage market risks, PUMA acquires and sells derivatives and also enters into financial liabilities. All
transactions are carried out within the framework of the Group's risk management regulations.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
328
CURRENCY RISK
PUMA is exposed to transactional foreign currency risks such that the quoted currencies used for
acquisition, disposal and credit transactions and for receivables do not match the functional currency of the
Group companies.
In financial year 2023, PUMA designated currency hedges in Cashflow Hedge Accounting in order to hedge
the amount payable of purchases denominated in USD, and converted to euros, as well as for other currency
risks resulting from internal resale to PUMA subsidiaries.
Furthermore, currency swaps and forward exchange contracts are used to hedge foreign exchange risks
when measuring intra-group loans denominated in foreign currencies.
The estimated foreign currency risks are initially subjected to a quantitative materiality test, while
simultaneously taking hedging costs into account. Material risks are then hedged, in accordance with the
Group directive, up to a hedging ratio of up to 95% of the estimated foreign currency risks from expected
acquisition and disposal transactions over the next 12 to 15 months. Forward exchange contracts and
currency options, usually with a term of around 12 months from the reporting date, are used to hedge the
foreign currency risk. For significant risks that are subject to large hedging costs, high hedging ratios can
only be achieved over shorter terms.
The summarised quantitative information about the Group's currency risk is as follows:
↗ T.43 EXPOSURE TO FOREIGN CURRENCY RISK 2023 (in € million)
as of 31 December 2023
USD
MXN
JPY
Risk from forecast transactions
-1,716.4
269.1
190.0
Balance sheet risk
-628.3
78.8
13.4
Total gross risk
-2,344.7
347.9
203.4
Hedged with currency options
18.1
0.0
-51.5
Hedged with currency forward contracts
1,933.1
-211.1
-110.3
Net risk
-393.5
136.7
41.6
↗ T.44 EXPOSURE TO FOREIGN CURRENCY RISK 2022 (in € million)
as of 31 December 2022
USD
GBP
JPY
Risk from forecast transactions
-1,665.5
104.5
205.2
Balance sheet risk
-307.1
76.6
28.3
Total gross risk
-1,972.6
181.0
233.4
Hedged with currency forward contracts
1,833.9
-171.9
-181.6
Net risk
-138.7
9.1
51.9
Currency forward contracts and the risk from forecast transactions were calculated on a one-year basis.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
329
The nominal amounts of open exchange rate-hedging transactions refer primarily to currency forward
contracts in a total amount of € 3,745.0 million (previous year: € 3,792.6 million).
The market values of open exchange rate-hedging transactions on the balance sheet date consist of:
↗ T.45 MARKET VALUE OF EXCHANGE RATE HEDGING CONTRACTS (in € million)
2023
2022
Currency forward contracts
35.5
118.3
Currency options
0.3
0.0
Currency hedging contracts, assets
35.8
118.3
Currency forward contracts
56.0
52.4
Currency options
1.2
0.0
Currency hedging contracts, liabilities
57.2
52.4
Net
-21.4
66.0
The net risk position and the average hedging rates are broken down as follows:
↗ T.46 AVERAGE HEDGING RATES
2023
2022
Current
Non-current
Current
Non-current
Currency risk
Net risk position (€ million)
1,076.5
504.2
1,167.5
508.2
Currency forward contracts
Average EUR/USD exchange rate
1.108
1.110
1.092
1.069
Average EUR/MXN exchange rate
19.978
-
21.636
-
Average EUR/JPY exchange rate
138.560
148.736
133.205
137.338
Currency options
Average EUR/USD exchange rate (Put/Call)
1.050/1.144
1.039/1.131
-
-
Average EUR/MXN exchange rate (Put/Call)
-
-
-
-
Average EUR/JPY exchange rate (Put/Call)
140.198/157.850
143.733/161.366
-
-
Currency sensitivity analysis
In order to disclose market risks, IFRS 7 requires sensitivity analysis that show the effects of hypothetical
changes in relevant risk variables on earnings and equity. The periodic effects are determined by relating
the hypothetical changes caused by the risk variables to the balance of the financial instruments held as of
the balance sheet date. The underlying assumption is that the balance as of the balance sheet date is
representative for the entire year.
Currency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a
currency which differs from the functional currency and are monetary in nature. Differences resulting from
PUMA Annual Report 2023
↗ Consolidated Financial Statements
330
the conversion of the individual financial statements to the group currency are not taken into account. All
non-functional currencies in which PUMA employs financial instruments are generally considered to be
relevant risk variables.
The currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies.
This also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also
reassessed as part of the sensitivity analysis.
The following table shows the increase or decrease of profit or loss or cash flow hedge reserve in equity in
the event of a 10% appreciation or depreciation against the euro spot price. It is assumed that all other
influencing factors, including interest rates and commodity prices, remain constant. The effects of the
forecasted operating cash flows are also ignored.
↗ T.47 SENSITIVITY ANALYSIS FOR FOREIGN EXCHANGE RATE CHANGES 2023 (in € million)
as of 31 December 2023
USD
MXN
JPY
Nominal amounts of outstanding currency forward contracts
2,413.7
-211.1
-123.7
EUR +10%
EUR +10%
EUR +10%
Equity
-151.3
17.9
-1.0
Profit or loss
2.0
-0.6
-0.1
EUR -10%
EUR -10%
EUR -10%
Equity
218.9
-11.0
-23.7
Profit or loss
-2.4
0.8
0.1
↗ T.48 SENSITIVITY ANALYSIS FOR FOREIGN EXCHANGE RATE CHANGES 2022 (in € million)
as of 31 December 2022
USD
GBP
JPY
Nominal amounts of outstanding currency forward contracts
2,428.2
-205.7
-233.8
EUR +10%
EUR +10%
EUR +10%
Equity
-186.6
7.7
13.9
Profit or loss
5.7
-0.1
0.4
EUR -10%
EUR -10%
EUR -10%
Equity
221.0
-18.8
-28.7
Profit or loss
-6.9
0.1
-0.5
Currency risks and other risk and opportunity categories are discussed in greater detail in the Combined
Management Report in the Risk and Opportunity Report.
INTEREST-RATE RISKS
The interest rate risk in the PUMA Group is primarily attributable to variable-interest borrowings. Interest
rate management is carried out centrally by the Treasury division on the basis of specified limits. Within this
framework, the division manages and monitors interest rate risk through the use of interest rate
derivatives. Transactions are only concluded with counterparties that are creditworthy. Derivatives financial
instruments must not be used for speculative purposes, but only to hedge risks related to underlying
transactions.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
331
As of 31 December 2023, € 207.5 million (previous year: € 67.5 million) of the borrowings were subject to
variable interest.
Interest rate collars were also concluded at the same amount and with the same maturity to hedge the risk
of interest rate changes for the variable interest-rate promissory note tranches in the amount of
€ 150.0 million in May 2023.
There is an economic relationship between the underlying and hedging transactions, since the terms of the
interest-rate collars correspond to those of the floating-rate loans. This applies to the nominal amount,
maturity, payment and interest adjustment dates. The underlying risk of interest rate collars is identical to
that of the hedged risk components. A hedge ratio of 1:1 has therefore been established for the hedging
relationship.
The net risk position and the average hedged interest rate are as follows:
↗ T.49 AVERAGE HEDGED INTEREST RATE
2023
Current
Non-current
Net risk position (€ million)
54.5
3.0
Interest rate risk
Average hedged interest rate in % based on current fixing (Cap/Floor)
4.7%/1.5%
As there were no significant variable interest-bearing liabilities in the previous year and no interest hedging
transactions were therefore used, the information for the previous year is not applicable.
Interest sensitivity analysis
The result in the Group depends on the development of the market interest rate level. A change in the
interest rate level would have an impact on the Group's income and equity. The analysis carried out includes
all interest-bearing financial instruments that are subject to interest rate risk.
A change in the interest rate level of 100 basis points would have the following effects on profit or loss and
the cash flow hedge reserve in equity
↗ T.50 SENSITIVITY ANALYSIS FOR INTEREST RATE RISK (in € million)
2023
+1.0%
-1.0%
Equity
0.8
0.0
Profit or loss
0.4
-1.9
As there were no significant variable interest-bearing liabilities in the previous year, no interest-rate
sensitivity analysis was prepared for the previous year.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
332
INFORMATION ON HEDGING INSTRUMENTS THAT ARE IN A HEDGING RELATIONSHIP
On the balance sheet date, the amounts relating to items designated as hedged underlying transactions with regard to exchange rate risks were as follows:
↗ T.51 DESIGNATED HEDGE ITEMS (in € million)
Change in value for the calculation of
hedge ineffectiveness
Reserve for cash flow hedges
Balance remaining in the cash flow hedging
reserve from hedging relationships to which
hedge accounting is no longer applied
as of 31 December 2023
Currency risk –
sales transactions
-8.2
19.6
0.0
Currency risk –
sourcing transactions
-5.4
-23.5
0.0
Interest rate risk
0.0
0.0
0.0
as of 31 December 2022
Currency risk –
sales transactions
-31.1
29.8
0.0
Currency risk –
sourcing transactions
188.1
-15.7
0.0
PUMA Annual Report 2023
↗ Consolidated Financial Statements
333
The amounts relating to items designated as hedging instruments have the following effects on the statement of financial position and income statement:
↗ T.52 DESIGNATED HEDGE INSTRUMENTS (in € million)
Nominal
value
Carrying amount
in the financial year 2023
Assets
Liabilities
Item in the balance
sheet, in which the
hedging instrument
is included
Changes in the
value of the
hedging
instrument,
recognized in
other
comprehensive
income
Ineffectiveness
of the hedging
instrument,
recognized in the
income
statement
Items in the
income
statement,
containing the
ineffectiveness
of the hedging
Amount
transferred
from the
hedging reserve
to the inventory
acquisition cost
Amount
reclassified
from the
hedging reserve
to the income
statement
Items in the
income
statement
affected by the
reclassification
as of 31 December 2023
Currency risk –
sales transactions
1,082.2
22.3
-6.2
other current/
non-current
financial assets/
liabilities
8.2
-
Financial
expenses
-
29.8
Sales
Currency risk –
sourcing transactions
1,996.4
2.3
-34.5
5.4
-
-12.9
-5.1
Cost of sales
Interest rate risk
150.0
0.0
0.0
0.0
-
-
0.0
Financial
expenses
in the financial year 2022
as of 31 December 2022
Currency risk –
sales transactions
1,097.7
44.0
-3.5
other current/
non-current
financial assets/
liabilities
31.1
-
Financial
expenses
-
-16.7
Sales
Currency risk –
sourcing transactions
2,082.6
21.9
-43.4
-188.1
-
91.9
144.0
Cost of sales
PUMA Annual Report 2023
↗ Consolidated Financial Statements
334
The following table shows the reconciliation of the change in equity in relation to cash flow hedges:
↗ T.53 CHANGES IN THE RESERVE FOR CASH FLOW HEDGE (in € million)
2023
2022
Reserve for cash flow hedge as of 1 January
14.2
78.1
Change in fair value
Thereof currency risk
-13.6
157.0
Thereof interest rate risk
0.0
0.0
Amount included in the acquisition cost of non-financial assets
12.9
-91.9
Amount reclassified to the income statement
Thereof currency risk
-27.5
-128.2
Thereof interest rate risk
0.0
0.0
Tax effect
10.1
-0.7
Reserve for cash flow hedge as of 31 December
-3.9
14.2
A small portion of the originally planned sourcing and sales volume in foreign currencies did not transpire,
leading to an excess of hedging transactions. Hedge accounting was terminated for those sourcing and
sales transactions that were no longer expected to transpire, and the fair value was transferred as a profit
or loss from the cash flow hedge reserve to the income statement. As soon as any highly likely sourcing or
sales transaction is no longer expected to transpire, an offsetting transaction is concluded. Across all
currency pairs, an amount of € 5.5 million (previous year: € -14.8 million) was recognised in the income
statement.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
335
15. PENSION PROVISIONS
Pension provisions result from employees' claims and, if applicable, their survivors, for benefits which are
based on the statutory or contractual regulations applicable in the respective country in the event of
invalidity, death or when a certain retirement age has been reached. Pension commitments in the PUMA
Group include both benefit- and contribution-based pension commitments and include both obligations
from current pensions and rights to pensions payable in the future. The pension entitlements are financed
by both provisions and funds.
The risks associated with the pension commitments mainly concern the usual risks of benefit-based
pension plans in relation to possible changes in the discount rate and inflation trends, and recipient
longevity. In order to limit the risks of changed capital market conditions and demographic developments,
plans with the maximum obligations were agreed or insured for new hires a few years ago in Germany and
Great Britain. The specific risk of obligations based on salary is low within the PUMA Group. The
introduction of an annual cap for pensionable salary in the Great Britain plan in 2016 covers this risk for the
highest obligations. The Great Britain plan is therefore classified as a non-salary obligation.
↗ T.54 PRESENT VALUE OF PENSION OBLIGATION 2023 (in € million)
Germany
Great Britain
Other
companies
PUMA Group
Present value of pension obligation 31 December 2023
Salary-based obligations
Annuity
0.0
0.0
8.8
8.8
One-off payment
0.0
0.0
9.1
9.1
Non-salary based obligations
Annuity
49.3
31.9
0.0
81.2
One-off payment
8.2
0.0
0.0
8.2
Total
57.5
31.9
17.9
107.3
PUMA Annual Report 2023
↗ Consolidated Financial Statements
336
The following values were determined in the previous year:
↗ T.55 PRESENT VALUE OF PENSION OBLIGATION 2022 (in € million)
Germany
Great Britain
Other
companies
PUMA Group
Present value of pension obligation 31 December 2022
Salary-based obligations
Annuity
0.0
0.0
8.6
8.6
One-off payment
0.0
0.0
9.3
9.3
Non-salary based obligations
Annuity
48.9
29.6
0.0
78.5
One-off payment
7.9
0.0
0.0
7.9
Total
56.8
29.6
17.9
104.3
The main pension arrangements are described below:
The general pension scheme of PUMA SE essentially provides for pension payments to a maximum amount
of € 127.82 per month and per eligible employee. It was closed for new members beginning in 1996. In
addition, PUMA SE provides individual commitments (fixed sums in different amounts) as well as
contribution-based individual benefits (in part from salary conversion). The contribution-based individual
benefits are insured plans. There are no statutory minimum funding requirements. The scope of obligation
for domestic pension claims amounts to € 57.5 million at the end of 2023 (previous year: € 56.8 million) and
thus comprises 53.6% of the total obligation. The fair value of the plan assets relative to domestic
obligations amounts to € 50.4 million. The corresponding pension provision amounts to € 7.1 million.
The defined benefit plan in Great Britain has not been available to new hires since 2006. This defined benefit
plan includes salary and length of service-based commitments to provide old age, invalidity and surviving
dependents' retirement benefits. In 2016, a growth cap of 1% p.a. was introduced on the pensionable salary.
Partial capitalisation of the old-age pension is permitted. There are statutory minimum funding
requirements. The obligations regarding pension claims under the defined benefit plan in the UK amount to
€ 31.9 million at the end of 2023 (previous year: € 29.6 million) and thus account for 29.7% of the total
obligation. The obligation is covered by assets amounting to € 29.7 million. The provision amounts to
€ 2.2 million.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
337
The present value of the pension obligation has developed as follows:
↗ T.56 DEVELOPMENT OF PRESENT VALUE OF PENSION OBLIGATION (in € million)
2023
2022
Present value of pension obligation 1 January
104.3
122.3
Cost of the pension obligation earned in the reporting year
2.0
2.5
Interest expense on pension obligation
4.4
1.9
Employee contributions
0.6
8.3
Benefits paid
-4.5
-3.4
Effects from transfers
0.0
0.0
Actuarial gains (-) and losses
0.1
-25.1
Currency exchange effects
0.5
-2.2
Present value of pension obligation 31 December
107.3
104.3
The changes in the plan assets are as follows:
↗ T.57 DEVELOPMENT OF PLAN ASSETS (in € million)
2023
2022
Plan assets 1 January
82.4
90.7
Interest income on plan assets
3.5
1.4
Actuarial gains and losses (-)
-0.9
-15.0
Employer contributions
1.2
1.0
Employee contributions
0.6
8.3
Benefits paid
-2.2
-2.3
Currency exchange effects
0.6
-1.7
Plan assets 31 December
85.2
82.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
338
The pension provision for the Group is derived as follows:
↗ T.58 PENSION PROVISION (in € million)
2023
2022
Present value of pension obligation from benefit plans
107.3
104.3
Fair value of plan assets
-85.2
-82.4
Financing status
22.1
21.9
Pension provision 31 December
22.1
21.9
Thereof assets
0.4
0.5
Thereof liabilities
22.5
22.4
In 2023, benefits paid amounted to € 4.5 million (previous year: € 3.4 million). Contributions in 2024 are
expected to amount to € 3.0 million. Of this, € 0.9 million is expected to be paid directly by the employer.
Employer contributions to external plan assets amounted to € 1.2 million in 2023 (previous year:
€ 1.0 million). Employer contributions in 2024 are expected to amount to € 0.8 million.
The changes in pension provisions are as follows:
↗ T.59 DEVELOPMENT OF THE PENSION PROVISION (in € million)
2023
2022
Pension provision 1 January
21.9
31.6
Pension expense
2.8
3.0
Actuarial gains (-) and losses recorded in other comprehensive income
1.0
-10.1
Employer contributions
-1.2
-1.0
Direct pension payments made by the employer
-2.3
-1.1
Transfer values
0.0
0.0
Currency exchange differences
-0.2
-0.5
Pension provision 31 December
22.1
21.9
Thereof assets
0.4
0.5
Thereof liabilities
22.5
22.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
339
The expenses in financial year 2023 are structured as follows:
↗ T.60 EXPENSES FOR DEFINED BENEFIT PLANS (in € million)
2023
2022
Cost of the pension obligation earned in the reporting year
2.0
2.5
Interest expense on pension obligation
4.4
1.9
Interest income on plan assets
-3.5
-1.4
Administration costs
0.0
0.0
Expenses for defined benefit plans
2.8
3.0
Thereof personnel costs
1.9
2.5
Thereof financial costs
0.9
0.5
In addition to the defined benefit pension plans, PUMA also makes contributions to defined contribution
plans. Payments for financial year 2023 amounted to € 19.8 million (previous year: € 18.5 million).
Actuarial gains and losses recorded in Other Comprehensive Income:
↗ T.61 GAINS AND LOSSES RECORDED IN OTHER COMPREHENSIVE INCOME (in € million)
2023
2022
Revaluation of pension commitments
0.1
-25.1
Actuarial gains (-) and losses resulting from changes in demographic assumptions
-0.7
-0.1
Actuarial gains (-) and losses resulting from changes in financial assumptions
0.0
-30.3
Actuarial gains (-) and losses due to adjustments based on experience
0.8
5.3
Revaluation of plan assets
0.9
15.0
Amounts not recorded due to the maximum limit applicable to assets
0.0
0.0
Adjustment of administration costs
0.0
0.0
Total revaluation amounts recorded directly in other comprehensive income
1.0
-10.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
340
Plan assets investment classes:
↗ T.62 PLAN ASSETS INVESTMENT CLASSES (in € million)
2023
2022
Cash and cash equivalents
0.3
0.1
Equity instruments
6.0
5.5
Bonds
7.4
3.5
Investment funds
3.2
3.0
Derivatives
10.0
11.6
Real estate
2.9
2.9
Insurance
50.6
49.4
Other
4.9
6.4
Total plan assets
85.2
82.4
Of which, investment classes with a quoted market price:
↗ T.63 PLAN ASSETS WITH A QUOTED MARKET PRICE (in € million)
2023
2022
Cash and cash equivalents
0.3
0.1
Equity instruments
6.0
5.5
Bonds
7.4
3.5
Investment funds
3.2
3.0
Derivatives
10.0
11.6
Real estate
2.1
2.1
Insurance
0.0
0.0
Other
4.7
6.3
Plan assets with a quoted market price
33.7
32.1
Plan assets still do not include the Group's own financial instruments or real estate used by Group
companies.
The plan assets are used exclusively to meet defined pension commitments. Legal requirements exist in
some countries for the type and amount of financial resources that can be chosen; in other countries (for
example Germany) the financing of pension commitments can be chosen freely. In Great Britain, a board of
trustees made up of company representatives and employees is in charge of asset management. Its
investment strategy is aimed at long-term profits and tolerable volatility. It was last revised in 2022 to
reduce the risk profile. In 2023, the trustees continued to monitor the investment strategy.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
341
The following assumptions were used to determine pension obligations and pension expenses:
↗ T.64 ASSUMPTIONS USED TO DETERMINE THE PENSION OBLIGATIONS
2023
2022
Discount rate
4.55%
4.35%
Future pension increases
1.93%
2.00%
Future salary increases
2.05%
2.06%
The indicated values are weighted average values. A standard interest rate of 4.45% was applied for the
eurozone (previous year: 4.00%).
The 2018 G Heubeck guideline tables were used as mortality tables for Germany. For Great Britain, the
mortality was assumed based on basic table series S2 taking into account life expectancy projections in
accordance with CMI2021 with a long-term trend of 1%.
The following overview shows how the present value of pension obligations from benefit plans would have
been affected by changes to significant actuarial assumptions.
↗ T.65 SENSITIVITY ANALYSIS FOR PENSION OBLIGATION (in € million)
2023
2022
Effect on present value of pension obligations if
the discount rate were 50 basis points higher
-3.7
-3.7
the discount rate were 50 basis points lower
4.2
4.1
Salary and pension trends have only a negligible effect on the present value of pension obligations due to
the structure of the benefit plans.
The weighted average duration of pension obligations is around 12 years (previous year: around 11 years).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
342
16. OTHER PROVISIONS
↗ T.66 OTHER PROVISIONS (in € million)
2022
2023
2022
Currency
adjustments,
retransfers
Additions
Utilization
Reversal
thereof non-
current
thereof non-
current
Provisions for:
Warranties
2.7
-0.1
0.5
-0.6
-0.3
2.1
0.0
0.0
Purchasing risks
7.1
-0.1
5.9
-4.6
-0.9
7.4
0.0
0.0
Litigation risks
26.6
-0.7
6.1
-15.2
-2.8
13.9
7.5
8.4
Restoration obligations
17.0
-0.8
1.9
-0.8
-0.5
16.9
13.9
14.1
Personnel provisions
7.0
0.4
2.6
-4.1
0.0
5.9
5.9
7.0
Other
19.3
-0.2
5.5
-6.1
-9.8
8.7
0.0
0.0
Total
79.8
-1.4
22.3
-31.5
-14.3
55.0
27.3
29.5
The 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
will 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
shoes.
Personnel provisions mainly relate to non-current variable compensation components. The risks arising from legal disputes relate to any form of legal dispute, including
those relating to trademark and patent rights. The other provisions relate to other risks, in particular those associated with sourcing.
Current 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
significant compounding effects. The recognition and valuation of provisions is based on past experience of similar transactions. All events until the preparation of the
consolidated financial statements are taken into account here.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
343
17. EQUITY
SUBSCRIBED CAPITAL
The subscribed capital corresponds to the subscribed capital of PUMA SE.
As of the balance sheet date, the subscribed capital in accordance with the Articles of Association
corresponds to € 150,824,640.00 and is divided into 150,824,640 no-par value voting shares. This corresponds
to a proportional amount of € 1.00 per share.
Changes in the outstanding shares:
↗ T.67 CHANGE IN OUTSTANDING SHARES
2023
2022
Outstanding shares as of January 1, share
149,758,644
149,605,600
Issue of Treasury Stock, share
85,900
153,044
Outstanding shares as of December 31, share
149,844,544
149,758,644
The issue of treasury stock relates to compensation in connection with promotional and advertising
agreements.
CAPITAL RESERVE
The capital reserve includes the premium from issuing shares, as well as amounts from the grant,
conversion and expiration of share options.
REVENUE RESERVES INCL. RETAINED EARNINGS
The revenue reserves incl. retained earnings include the net earnings of the financial year as well as the
earnings achieved in the past by the companies included in the consolidated financial statements to the
extent that it was not distributed. In addition, the valuation effects from the pension provision recognised in
other comprehensive income are recognised in retained earnings.
DIFFERENCE FROM CURRENCY CONVERSION
The equity item for currency conversion serves to record the foreign exchange differences from the
conversion of the financial statements of subsidiaries with non-euro accounting.
CASH FLOW HEDGES
The "cash flow hedges" item includes the market valuation of derivative financial instruments. The item
amounting to € -3.9 million (previous year: € 14.2 million) is offset by deferred taxes of € 5.3 million (previous
year: € -4.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
344
TREASURY STOCK
The resolution adopted by the Annual General Meeting on 7 May 2020 authorised the Company to purchase
treasury shares up to a value of 10% of the share capital until 6 May 2025. By resolution of the Annual
General Meeting of 5 May 2021, the Supervisory Board was authorised to issue the acquired shares to the
members of the Management Board of the Company, excluding the shareholders' subscription rights. By
resolution of the Annual General Meeting of 11 May 2022, the Management Board was, moreover, authorised
to issue the acquired shares, excluding the shareholders' subscription rights, as part of the Company's or
its affiliated companies' share-based payments or employee share programmes to individuals currently or
formerly in an employment relationship with the Company or one of its affiliated companies or to members
of the management of one of the Company's affiliated companies. If purchased through the stock exchange,
the purchase price per share must not exceed 10% or fall below 20% of the average closing price for the
Company's shares with the same attributes in the XETRA trading system (or a comparable successor
system) during the last three trading days prior to the date of purchase.
The Company did not make use of the authorisation to purchase treasury stock during the reporting period.
As of the balance sheet date, the Company holds a total of 980,096 PUMA shares in its own portfolio, which
corresponds to 0.65% of the subscribed capital.
AUTHORISED CAPITAL
As of 31 December 2023, the Company's Articles of Association provide for authorised capital totalling
€ 30,000,000.00:
Pursuant to Section 4.2. of the Articles of Association, the Management Board is authorised, with the
consent of the Supervisory Board, to increase the Company's share capital by 4 May 2026 by up to
€ 30,000,000.00 (Authorised Capital 2021) by issuing new no-par value bearer shares against cash and/or
non-cash contributions on one or more occasions. In the case of capital increases against contributions in
cash, the new shares may be acquired by one or several banks, designated by the Management Board,
subject to the obligation to offer them to the shareholders for subscription (indirect subscription right). The
shareholders shall generally be entitled to subscription rights. However, the Management Board is
authorised, with the consent of the Supervisory Board, to exclude shareholders' subscription rights in whole
or in part in the cases specified in Section 4.2. of the Articles of Association.
The Management Board of PUMA SE did not make use of the existing authorised capital in the current
reporting period.
CONDITIONAL CAPITAL
By resolution of the Annual General Meeting of 11 May 2022, the Management Board was authorised until
10 May 2027, with the consent of the Supervisory Board, through one or more issues, altogether or in parts
and in various tranches at the same time, to issue bearer or registered convertible and/or option bonds,
profit-sharing rights or participation bonds or a combination of these instruments with or without a term
limitation in a total nominal amount of up to € 1,500,000,000.00.
The share capital was conditionally increased by up to € 15,082,464.00 by issuing up to 15,082,464 new no-par
value bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented
to the extent that conversion/option rights are exercised, or the option/conversion obligations are met or
tenders are carried out and to the extent that other forms of performance are not applied.
No use has been made of this authorisation to date.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
345
DIVIDENDS
The amounts eligible for distribution relate to the retained earnings of PUMA SE, which are determined in
accordance with German Commercial Law.
The Management Board and the Supervisory Board will propose to the Annual General Meeting that a
dividend of € 0.82 (previous year: € 0.82) per circulating share, or a total of € 122.9 million (with respect to
the circulating shares as of 31 December 2023), be distributed to the shareholders from the retained
earnings of PUMA SE for financial year 2023.
Proposed appropriation of the retained earnings of PUMA SE:
↗ T.68 PROPOSED APPROPRIATION OF THE RETAINED EARNINGS OF PUMA SE
2023
2022
Retained Earnings of PUMA SE as of December 31, € million
486.4
499.4
Retained earnings available for distribution, € million
486.4
499.4
Dividend per share, €
0.82
0.82
Number of outstanding shares*, share
149,844,544
149,758,644
Total dividend*, € million
122.9
122.8
Carried forward to the new accounting period*, € million
363.6
376.6
*
Previous year's values adjusted to the outcome of the Annual General Meeting
NON-CONTROLLING INTERESTS
This item comprises non-controlling interests. The composition is shown in chapter 28.
CAPITAL MANAGEMENT
The Group's objective is to retain a strong equity base in order to maintain both investor and market
confidence, and to strengthen future business performance.
Capital management relates to the consolidated equity of PUMA. This is presented in the consolidated
statement of financial position and in the consolidated statement of changes in equity.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
346
18. MANAGEMENT INCENTIVE PROGRAMMES
Virtual shares with cash settlement and other global long-term incentive programmes are used at PUMA to
tie the management to the Company with a long-term incentive effect.
The current programmes are described below:
EXPLANATION OF "VIRTUAL SHARES", TERMED "MONETARY UNITS" (FULL TERM: MONETARY UNITS
PLAN – MUP)
Monetary units were granted on an annual basis to members of the Management Board beginning in 2013 as
part of a management incentive programme. Monetary units are based on the PUMA share performance.
Each of these monetary units entitles the holder to a cash payment at the end of the term. The entitled cash
payment compares the performance using the average virtual appreciation rights of the last thirty trading
days before the start of the year of issue with the virtual appreciation rights of the last thirty trading days
before the exercise date. The maximum increase in value (cap) is limited to 300% of the amount allocated.
Monetary units are subject to a vesting period of three years. After that, there is an exercise period
beginning 30 days after each quarterly publication date for a period of two years which can be freely used by
participants for the purposes of execution. Virtual shares are reduced on a "pro rata" basis in the event of
withdrawal during the vesting period. This programme will expire and be replaced by the Performance
Share Plan. As a result, no more shares were issued from this programme in financial year 2023.
EXPLANATION OF "VIRTUAL SHARES" (FULL TERM: PERFORMANCE SHARE PLAN – PSP)
Virtual shares were granted on an annual basis to members of the Management Board beginning in 2021 as
part of a management incentive programme. The virtual shares are based on the PUMA share performance.
Each of these virtual shares entitles the holder to a cash payment at the end of the term. However, the
Supervisory Board reserves the right to make the payment in PUMA shares instead of cash. This cash
payout is based on the PUMA closing prices for the last thirty trading days before the exercise date. The final
number of virtual shares is between 50% and 150%, depending on the relative "Total Shareholder Returns"
(TSR) compared to the MDAX index. The PUMA and MDAX index TSRs are calculated using the arithmetic
means of each of the TSR values on the 30 trading days before the start and end of the performance period.
The averages calculated in this way for PUMA and the MDAX index are then compared with each other. The
difference in percentage points between the PUMA TSR and the MDAX index TSR is then calculated (= TSR
outperformance in percentage points). The maximum increase in value (cap) is limited to 300% of the
amount allocated. Virtual shares are subject to a vesting period of four years. They are generally paid out
within the first quarter of the fifth year after their issue. Virtual shares are reduced on a "pro rata" basis in
the event of withdrawal during the vesting period. For the programmes issued in the financial years 2021
and 2022, the DAX acts as the basis for calculating virtual shares, while the MDAX index is used starting
financial year 2023.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
347
In 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
(previous year: income of € 0.9 million).
↗ T.69 VIRTUAL SHARES, MEMBERS OF THE MANAGEMENT BOARD
Plan
MUP
MUP
PSP
MUP
PSP
PSP
Issue date
1/1/2020
1/1/2021
1/1/2021
1/1/2022
1/1/2022
1/1/2023
Term
5
5
4.25
5
4.25
4.25
Years
Vesting period
3
3
4
3
4
4
Years
Base price PUMA share at issue
67.69
86.23
86.23
106.95
106.95
51.86
EUR/share
Reference value PUMA share at the end of the financial year
0
55.46
49.25
55.46
46.3
50.62
EUR/share
Weighted share price at the time of exercise
62.03
0
0
0
0
0
EUR/share
Participants in the year of issue
3
3
2
1
3
4
Persons
Participants at the end of the financial year
3
3
2
1
3
4
Persons
Number of monetary units/virtual shares as of 1 January 2023
62,743
34,548
7,070
10,323
16,458
81,279
Shares
Number of monetary units/virtual shares exercised in the financial year
-62,743
0
0
0
0
0
Shares
Number of monetary units/virtual shares expired in the financial year
0
0
0
0
0
0
Shares
Final number of monetary units/virtual shares as of 31 December 2023
0
34,548
7,070
10,323
16,458
81,279
Shares
This commitment consisting of share-based remuneration transactions with cash compensation is recorded as personnel provisions and remeasured at fair value on
every 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
over 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
of the financial year (previous year: € 5.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
348
EXPLANATION OF THE "GAME CHANGER 2.0" PROGRAMME
In 2018, the Long-Term Incentive Programme (LTIP) "Game Changer 2.0" was launched. Participants in this
programme consist mainly of top executives reporting to the Management Board and individual key
positions in the PUMA Group. The objective of this programme is to retain these employees in the Company
on a long-term basis and to allow them to share in the medium-term success of the Company.
The LTIP "Game Changer 2.0" consists of two plan parts, a Performance Cash Plan and a Performance
Share Plan, each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's
financial performance, while the Performance Share Plan gives a reward for the performance of the
PUMA SE share in the capital market.
The performance period of the Performance Cash Plan is three years and is based on the average medium-
term targets of the PUMA Group in terms of EBIT, sales and cash flow or working capital as a percentage of
sales. Payment is made in cash and is limited to a maximum of 200% of the granted proportionate target
amount (cap).
The Performance Share Plan uses virtual shares to manage the incentive. The term is up to five years. This
is divided into a three-year performance period and a two-year exercise period in which the virtual shares
are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24 months after the end
of the performance period). The average share price of the last 30 trading days before the exercise date
determines the value of a virtual share. The payout is limited to a maximum of 300% of the granted prorated
target amount (cap) and is only made if an exercise hurdle of +10% share-price appreciation is exceeded
once during the performance period.
EXPLANATION OF THE "GAME CHANGER 2.0 – 2023" PROGRAMME
In 2020, the global "Game Changer 2.0 – 2023" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As
part of the Performance Share component, payment is limited to a maximum of 300% of the granted
proportionate target amount (cap).
In the reporting year, an amount of € 2.2 million (of which, € 0.8 million from the Performance Share Plan)
was paid out to the participants. The payment was subject to the condition that the individual participants
were in an unterminated employment relationship with a company in the PUMA Group as at 31
December 2022. Furthermore, € -0.1 million was released for this programme in the year under review
(previous year: release of € 0.2 million). This resulted in a provision for this programme at the end of the
financial year of
€ 0.5 million (previous year: € 2.8 million). The Performance Share Plan portion accounted for € 0.5 million
(previous year: € 1.3 million).
EXPLANATION OF THE "GAME CHANGER 2.0 – 2024" PROGRAMME
In 2021, the global "Game Changer 2.0 – 2024" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (45%), working capital as a percentage of
sales (15%), and sales (40%). As part of the Performance Share component, payment is limited to a
maximum of 300% of the granted proportionate target amount (cap). An employment relationship until
31 December 2023 is required. In the reporting year, € 0.2 million was released for this programme (previous
year: € 0.0 million) and a proportionate amount of € 1.1 million (previous year: € 0.5 million) was set aside for
this programme. This resulted in a provision for this programme at the end of the financial year of
€ 3.4 million (previous year: € 2.5 million). The Performance Share Plan portion accounted for € 1.2 million
(previous year: € 0.8 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
349
EXPLANATION OF THE "GAME CHANGER 2.0 – 2026" PROGRAMME
In 2023, the global "Game Changer 2.0 – 2026" programme, as outlined above, was launched. The
Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As
part of the Performance Share component, payment is limited to a maximum of 300% of the granted
proportionate target amount (cap). An employment relationship until 31 December 2024 is required. In the
reporting year, a prorated amount of € 1.8 million (previous year: € 0.0 million) was set aside for this
programme. This resulted in a provision for this programme at the end of the financial year of € 1.8 million
(previous year: € 0.0 million). The Performance Share Plan portion accounted for € 1.0 million (previous year:
€ 0.0 million).
EXPLANATION OF THE "ROAD 2 10B" PROGRAMME
In 2022, the "Game Changer 2.0" programme was replaced by the long-term incentive programme (LTIP)
"Road 2 10B". Participants in this programme consist of important professionals and managers within the
PUMA Group. The objective of this programme is to retain these employees in the Company on a long-term
basis and to allow them to share in the medium-term success of the Company.
The LTIP "Road 2 10B" consists of two plan parts, a Performance Cash Plan and a Performance Share Plan,
each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's financial
performance, while the Performance Share Plan gives a reward for the performance of the PUMA SE share
in the capital market.
The Performance Cash Plan is focused on the following targets: EBIT, sales and working capital as a
percentage of sales based on the three-year plan set by the Management Board of PUMA SE. For
participants in the programme with an employment relationship at Group level, the target achievement is
based on the following Group targets: EBIT (45%), sales (40%), and working capital as a percentage of sales
(15%). For participants in the programme with an employment relationship at the national or regional level,
50% of the target achievement is based on achieving the Group targets. The remaining 50% is based on
achieving the following targets at the national or regional level: EBIT (22.5%), sales (20%) and working
capital as a percentage of sales (7.5%). Payment is limited to a maximum of 200% of the granted
proportionate target amount (cap).
The Performance Share Plan is based on the performance of the PUMA share price. The term is up to five
years, divided into a three-year performance period and a subsequent two-year exercise period, in which
the virtual shares are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24
months after the end of the performance period). The average share price of the last 30 trading days before
the exercise date determines the payout value of a virtual share. The payout is limited to a maximum of
300% of the granted prorated target amount (cap) and is only made if an exercise hurdle of +10% share-price
appreciation is exceeded once during the performance period.
In the reporting year, € 0.6 million was released for this programme (previous year: € 0.0 million) and a
proportionate amount of € 0.8 million (previous year: € 4.7 million) was set aside for this programme. This
resulted in a provision for this programme at the end of the financial year of € 6.0 million (previous year:
€ 5.8 million). The Performance Share Plan portion accounted for € 0.4 (previous year: € 0.6 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
350
↗ T.70 VIRTUAL SHARES, NON-MANAGEMENT BOARD MEMBERS
Program addendum
Game Changer
2023
Game Changer
2024
Road 2.10b
Game Changer
2026
Issue date
1/1/2020
1/1/2021
1/1/2022
1/1/2023
Term
5
5
5
5
Years
Vesting period
3
3
3
3
Years
Base price at program start
67.69
86.23
106.95
51.86
EUR/share
Reference value at the end of the financial year
55.46
55.46
5.73
55.46
EUR/share
Weighted share price at the time of exercise
51.43
0
0
0
EUR/share
Participants in the year of issue
60
76
486
84
Persons
Participants at the end of the financial year
19
65
467
84
Persons
Number of virtual shares as of 1 January 2023
24,547
23,340
103,352
55,167
Shares
Number of virtual shares expired in the financial year
-222
-2,370
-10,467
0
Shares
Number of virtual shares added in the financial year (new participants)
0
470
2,674
0
Shares
Number of virtual shares exercised in the financial year
-15,334
0
0
0
Shares
Final number of virtual shares as of 31 December 2023
8,991
21,440
95,559
55,167
Shares
PUMA Annual Report 2023
↗ Consolidated Financial Statements
351
NOTES TO THE CONSOLIDATED INCOME
STATEMENT
19. SALES
The following table shows the Group's sales broken down by distribution channel and division:
↗ T.71 BREAKDOWN BY DISTRIBUTION CHANNEL (in € million)
2023
2022
Wholesale
6,468.6
6,513.7
Direct-to-consumer (DTC)
2,133.0
1,951.4
Total
8,601.7
8,465.1
↗ T.72 BREAKDOWN BY PRODUCT DIVISION (in € million)
2023
2022
Footwear
4,583.4
4,317.9
Apparel
2,763.0
2,896.3
Accessories
1,255.3
1,251.0
Total
8,601.7
8,465.1
20. OTHER OPERATING INCOME AND EXPENSES
According to the respective functions, other operating income and expenses include personnel, advertising,
sales and distribution expenses as well as rental and leasing expenditure, travel costs, legal and consulting
expenses and other general expenses. Rental and lease expenses associated with the Group's own retail
stores include revenue-based rental components.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
352
Other operating income and expenses are allocated based on functional areas as follows:
↗ T.73 OTHER OPERATING INCOME AND EXPENSES (in € million)
2023
2022
Sales and distribution expenses
2,799.0
2,677.2
Product management/merchandising
82.5
70.9
Research and development
89.0
82.2
Administrative and general expenses
450.9
465.8
Other operating expenses
3,421.3
3,296.0
Other operating income
-17.8
-0.1
Total
3,403.5
3,295.9
Thereof personnel expenses
894.4
836.3
Thereof scheduled depreciation
351.7
332.8
Thereof impairment losses
5.7
26.0
Thereof reversal of impairment losses
-11.9
0.0
Within the sales and distribution expenses, marketing/retail expenses account for a large proportion of the
operating expenses. In addition to advertising and promotional expenses, they also include expenses
associated with the Group's own retail activities. Other sales and distribution expenses include logistics
expenses and other variable sales and distribution expenses.
Impairment expenses in the reporting year amounted to € 5.7 million and related exclusively to right-of-use
assets (previous year: € 25.4 million). There were no impairment expenses for property, plant and
equipment (previous year: € 0.6 million). In contrast, there were reversals of impairment losses on
right-of-use assets amounting to € 11.9 million (previous year: € 0.0 million).
In the consolidated financial statements of PUMA SE, fees of € 2.0 million (previous year: € 1.9 million) are
recorded as operating expenses for the auditor of the consolidated financial statements, KPMG AG
Wirtschaftsprüfungsgesellschaft, Nuremberg, Germany. The audit fee is divided into fees for audit services
for the annual and consolidated financial statements as well as the audit review of the half-year financial
report in the amount of € 1.8 million (previous year: € 1.8 million) and other assurance services amounting to
€ 0.2 million (previous year: € 0.1 million) mainly for the audit of information in the sustainability report and
other minor services in the amount of € 0.0 million (previous year: none). In addition to expenses for
PUMA SE, the fees also include the fees of the domestic and foreign subsidiaries audited directly by the
Group auditor.
In financial year 2023, government grants amounted to a mid single-digit (previous year: low double-digit)
million euro amount. Government grants are deducted from the corresponding expenses.
Other operating income comprises income from the sale of fixed assets in the amount of € 8.5 million
(previous year: € 0.1 million), selling profit from finance leases totalling € 8.0 million (previous year:
€ 0.0 million), and rental income totalling € 1.4 million (previous year: € 0.0 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
353
Overall, other operating expenses include personnel costs, which consist of:
↗ T.74 PERSONNEL COSTS (in € million)
2023
2022
Wages and salaries
688.7
649.8
Social security contributions
101.2
91.9
Expenses from share-based payments with cash compensation
5.2
5.1
Expenses for retirement pension and other personnel expenses
99.3
89.5
Total
894.4
836.3
In addition, cost of sales includes personnel costs in the amount of € 6.2 million (previous year:
€ 10.2 million).
The average number of employees for the year was as follows:
↗ T.75 EMPLOYEES
2023
2022
Marketing/retail/sales
13,092
12,229
Research & development/product management
1,360
1,228
Administrative and general units
3,570
3,213
Total annual average
18,023
16,669
As of the end of the year, a total of 18,681 individuals were employed (previous year: 18,071).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
354
21. FINANCIAL RESULT
The financial result consists of:
↗ T.76 FINANCIAL RESULT (in € million)
2023
2022
Interest income
36.6
32.3
Interest income - lease receivables
1.2
0.0
Other
74.9
47.1
Financial income
112.7
79.4
Interest expense
-53.1
-15.2
Interest expense - lease liabilities
-46.8
-38.6
Interest expense of valuation of pension plans
-0.9
-0.6
Expenses from currency-conversion differences, net
-69.4
-2.2
Other
-85.9
-111.7
Financial expenses
-256.0
-168.3
Financial result
-143.3
-88.9
The "Other" item in the financial income of € 74.9 million (previous year: € 47.1 million) includes interest
components in connection with currency derivatives as well as hedging gains from freestanding derivatives.
The item "Other" in financial expenses includes, among other things, interest components in connection
with currency derivatives in the amount of € 58.1 million (previous year: € 69.9 million) and the loss on the
net monetary position associated with hyperinflation in the amount of € 23.7 million (previous year:
€ 27.8 million).
22. INCOME TAXES
↗ T.77 INCOME TAXES (in € million)
2023
2022
Current income taxes
140.6
152.5
Deferred taxes
-22.8
-25.1
Total
117.8
127.4
Current income taxes include € 0.8 million in out-of-period income. Deferred taxes include tax income of
€ 0.3 million (tax income in previous year: € 39.2 million), which is attributable to the occurrence or
resolution of temporary differences.
In general, PUMA SE and its German subsidiaries are subject to corporate income tax, plus a solidarity
surcharge and trade tax. Thus, a weighted mixed tax rate of 27.22% continued to apply for the financial year.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
355
Reconciliation of the theoretical tax expense with the effective tax expense:
↗ T.78 TAX RATE RECONCILIATION (in € million)
2023
2022
Earnings before income tax
478.3
551.7
Theoretical tax expense
Tax rate of the SE = 27.22% (previous year: 27.22%)
130.2
150.2
Tax rate difference with respect to other countries
-21.0
-6.9
Other tax effects:
Income tax for previous years
3.7
-9.7
Losses and temporary differences for which no tax claims were recognized
6.4
4.8
Changes in tax rates
-0.4
-0.6
Non-deductible expenses for tax purposes and non-taxable income and other effects
-1.1
-10.4
Effective tax expense
117.8
127.4
Effective tax rate
24.6%
23.1%
For the financial year 2023, the total tax advantage from previously uncapitalised tax losses, tax credits or
temporary differences from previous years which led to a reduction in deferred tax expenses, amounted to
€ 7.5 million (previous year: € 7.0 million). Deferred tax expenses due to an impairment of deferred tax
assets amounted to € 11.3 million in the financial year (previous year: € 5.0 million).
The tax effect resulting from items that were directly included in other comprehensive income can be found
in chapter 8.
INFORMATION ON THE EFFECTS OF GLOBAL MINIMUM TAXATION (PILLAR II)
On 23 May 2023, the IASB published amendments to IAS 12, which require companies subject to global
minimum taxation regulations to provide additional information on the impact of the global minimum
taxation in their annual financial statements for financial years beginning on or after 1 January 2023.
The PUMA Group falls within the scope of application of the global minimum taxation. The relevant
legislation entered into force on 28 December 2023 in Germany, the country in which the parent company of
the PUMA Group is based, and applies to financial years beginning after 31 December 2023. As the Minimum
Tax Act ("MinStG") applies to the financial year of the PUMA Group beginning on 1 January 2024, but was not
yet applicable to the financial year beginning on 1 January 2023, the PUMA Group has no associated ongoing
tax risk in financial year 2023. Taking into account the fact that the PUMA Group will be affected by the
minimum tax legislation, a preliminary valuation of the potential risk was carried out.
The valuation of the potential risk of Pillar II taxes is based on the most recent country-related reports and
financial statements available to the Group's business units. The Group has identified a potential risk of the
suspension of Pillar II taxes on profits made in Hong Kong and the United Arab Emirates. The potential risk
arises from the business units (mainly operating subsidiaries) in these countries, where the effective tax
rate is likely to be less than 15%.
If the MinStG had been applied for this financial year ending on 31 December 2023, the amount of the tax
increase determined according to the MinStG would have totalled approx. € 12 million. However, the actual
amounts of tax increases in the countries concerned in 2024 will depend on various factors.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
356
The PUMA Group makes use of the exemption under IAS 12.88A for the recognition of deferred taxes that
result from the introduction of global minimum taxation.
23. EARNINGS PER SHARE
The earnings per share are determined in accordance with IAS 33 by dividing the consolidated annual
surplus (consolidated net earnings) attributable to the shareholders of the parent company by the weighted
average number of outstanding shares.
The calculation is shown in the table below:
↗ T.79 EARNINGS PER SHARE
2023
2022
Net income attributable to the shareholders of PUMA SE (€ million)
304.9
353.5
Weighted average number of outstanding shares (shares)
149,852,251
149,649,158
Earnings per share (€)
2.03
2.36
Net income for calculating the diluted earnings per share (€ million)
304.9
353.5
Weighted average number of outstanding shares (shares)
149,852,251
149,649,158
Dilutive effect of conditionally issuable shares in connection with service agreements
0
12,107
Dilutive effect from share-based payments
19,651
2,573
Weighted average number of outstanding shares, diluted (shares)
149,871,901
149,663,837
Earnings per share (€) - diluted
2.03
2.36
PUMA Annual Report 2023
↗ Consolidated Financial Statements
357
ADDITIONAL INFORMATION
24. SEGMENT REPORTING
Segment reporting is based on geographical areas of responsibility in accordance with the PUMA internal
reporting structure, with the exception of stichd. The geographical area of responsibility corresponds to the
business segment. Sales, the operating result (EBIT) and other segment information are allocated to the
corresponding geographical areas of responsibility according to the registered office of the respective Group
company.
The internal management reporting includes the following reporting segments: Europe, EEMEA (Eastern
Europe, Middle East, Africa, India and Southeast Asia), North America, Latin America, Greater China, rest of
Asia/Pacific (excluding Greater China and Southeast Asia) and stichd. These are reported as reportable
business segments in accordance with the criteria of IFRS 8.
The reconciliation includes information on assets, liabilities, expenses and income in connection with
centralised functions that do not meet the definition of business segments in IFRS 8. Central expenses and
income include in particular central sourcing, central treasury, central marketing, impairment losses on
non-current assets and other global functions of the Company headquarters.
The Company's main decision-maker is defined as the entire Management Board of PUMA SE.
The external sales presented in the segment reporting includes sales from both the wholesale business and
own retail activities (direct-to-consumer business). The percentage breakdown of sales by wholesale
business and direct-to-consumer business at the segment level mainly aligns with the breakdown at the
Group level (see chapter 19). Exceptions to this are the Greater China segment, where wholesale sales
represent approximately 50%, and the stichd segment, which almost exclusively generates wholesale sales.
The business relationships between the companies in the segments are essentially based on prices that are
also agreed with third parties. With the exception of sales of goods by stichd amounting to € 37.1 million
(previous year: € 38.3 million), there are no significant internal sales, which is why they are not included in
the presentation.
The operating result (EBIT) of the business segments is defined as gross profit less the attributable other
operating expenses plus royalty and commission income and other operating income, but not considering
the costs of the central departments and the central marketing expenses.
The external sales, operating result (EBIT), inventories and trade receivables of the business segments are
regularly reported to the main decision-maker. Amounts recognised by the Group from the intra-group
profit elimination on inventories in connection with intra-group sales are not allocated to the business
segments in the way that they are reported to the main decision-maker. Investments, depreciation and non-
current assets at the level of the business segments are not reported to the main decision-maker.
Intangible assets are allocated to the business segments in the manner described in chapter 11. Liabilities,
the financial result and income taxes are not allocated to the business segments and are therefore not
reported to the main decision-maker at the business segment level.
Non-current assets and depreciation comprise the carrying amounts and depreciation of property, plant and
equipment, right-of-use assets and intangible assets during the past financial year. The investments
comprise additions to property, plant and equipment and intangible assets.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
358
Since PUMA is active in only one business area, the sporting goods industry, products are additionally
allocated according to the Footwear, Apparel and Accessories product segments in accordance with the
internal reporting structure.
SEGMENT REPORTING JAN-DEC 2023
↗ T.80 BUSINESS SEGMENTS (in € million)
External Sales
EBIT
Investments
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Europe
2,016.0
1,922.5
251.4
242.0
25.8
33.6
EEMEA
1,626.2
1,333.3
392.1
308.5
28.1
30.2
North America
2,095.9
2,531.4
295.0
398.9
75.5
67.6
Latin America
1,239.9
1,098.3
285.3
285.2
75.8
34.6
Greater China
582.2
521.3
84.5
20.2
10.3
20.3
Asia/Pacific (excluding
Greater China)
551.7
588.5
61.2
73.4
6.5
7.2
stichd
459.4
469.8
89.5
113.2
22.1
21.2
Total business segments
8,571.3
8,465.1
1,458.9
1,441.2
244.1
214.7
Depreciation and amortization
Inventories
Trade Receivables (third
parties)
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Europe
61.7
58.5
498.5
602.5
196.4
190.3
EEMEA
55.6
55.8
338.4
378.5
286.5
189.4
North America
83.3
71.2
466.1
739.3
204.9
259.2
Latin America
39.2
23.1
306.9
253.1
223.7
200.7
Greater China
29.3
39.7
109.6
179.1
40.6
44.5
Asia/Pacific (excluding
Greater China)
28.1
31.6
97.8
114.7
91.5
111.4
stichd
11.2
8.3
104.8
93.9
72.1
66.1
Total business segments
308.3
288.2
1,922.0
2,361.1
1,115.7
1,061.6
PUMA Annual Report 2023
↗ Consolidated Financial Statements
359
↗ T.81 CONTINUATION BUSINESS SEGMENTS (in € million)
Non-current assets
1-12/2023
1-12/2022
Europe
477.4
477.1
EEMEA
186.1
198.1
North America
741.8
750.4
Latin America
221.5
128.2
Greater China
91.8
86.2
Asia/Pacific (excluding Greater China)
121.7
149.4
stichd
226.0
209.6
Total business segments
2,066.4
1,999.1
↗ T.82 PRODUCT External Sales (€ million) Gross Profit Margin (in %)
External Sales
Gross Profit Margin
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Footwear
4,583.4
4,317.9
45.4%
44.9%
Apparel
2,763.0
2,896.3
47.8%
47.3%
Accessories
1,255.3
1,251.0
46.6%
47.4%
Total
8,601.7
8,465.1
46.3%
46.1%
PUMA Annual Report 2023
↗ Consolidated Financial Statements
360
RECONCILIATIONS
↗ T.83 RECONCILIATIONS (in € million)
External Sales
1-12/2023
1-12/2022
Total business segments
8,571.3
8,465.1
Central Areas
30.4
0.0
Total
8,601.7
8,465.1
EBIT
1-12/2023
1-12/2022
Total business segments
1,458.9
1,441.2
Central Areas
-344.6
-364.4
Central expenses Marketing
-492.7
-436.2
Consolidation
0.0
0.0
EBIT
621.6
640.6
Financial Result
-143.3
-88.9
EBT
478.3
551.7
Investments
Depreciation and amortization
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Total business segments
244.1
214.7
308.3
288.2
Central Areas
55.5
49.3
43.4
44.6
Consolidation
0.0
0.0
0.0
0.0
Total
299.6
263.9
351.7
332.8
Inventories
Trade Receivables (third
parties)
Non-current assets
1-12/2023
1-12/2022
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Total business segments
1,922.0
2,361.1
1,115.7
1,061.6
2,066.4
1,999.1
Not allocated to the business
segments
-117.7
-116.0
2.8
3.3
237.7
211.0
Total
1,804.4
2,245.1
1,118.4
1,064.9
2,304.1
2,210.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
361
GEOGRAPHICAL INFORMATION
Sales revenue (with third parties) is reported in the geographical market in which it arises. Non-current
assets are allocated to the geographical market based on the registered office of the relevant subsidiary,
regardless of the segment structure.
↗ T.84 GEOGRAPHICAL INFORMATION BY COUNTRY (in € million)
External Sales
Non-current assets
1-12/2023
1-12/2022
1-12/2023
1-12/2022
Germany, Europe
631.6
586.3
507.0
488.3
USA, North America
1,933.7
2,334.2
604.5
604.7
25. NOTES TO THE CASH FLOW STATEMENT
The cash flow statement was prepared in accordance with IAS 7 and is structured based on cash flows from
operating, investing and financing activities. The indirect method is used to determine the cash
outflow/inflow from operating activities. The gross cash flow, derived from earnings before income tax and
adjusted for non-cash income and expense items, is determined within the cash flow from operating
activities. Cash outflow/inflow from operating activities less investments in property, plant and equipment
as well as intangible assets is referred to as free cash flow.
The cash and cash equivalents reported in the cash flow statement include all cash and cash equivalents
shown in the statement of financial position under the item "Cash and cash equivalents", i.e. cash on hand,
checks and current bank balances including short-term financial investments.
The following table shows the cash and non-cash changes in financial liabilities in accordance with IAS 7.44
A:
↗ T.85 RECONCILIATION OF FINANCIAL LIABILITIES TO THE CASH INFLOW/ OUTFLOW FROM
FINANCING ACTIVITIES 2023 (in € million)
Non-cash changes
Notes
Balance
01/01/2023
Currency
changes
Other
Cash changes
Balance
31/12/2023
Financial liabilities
Lease liabilities
10
1,230.4
-44.9
254.9
-208.0
1,232.4
Current borrowings
13
75.9
-0.6
129.8
-59.1
145.9
Non-current borrowings
13
251.5
0.0
-125.0
299.6
426.1
Total
1,557.8
-45.6
259.7
32.5
1,804.4
PUMA Annual Report 2023
↗ Consolidated Financial Statements
362
↗ T.86 RECONCILIATION OF FINANCIAL LIABILITIES TO THE CASH INFLOW/ OUTFLOW FROM
FINANCING ACTIVITIES 2022 (in € million)
Non-cash changes
Notes
Balance
01/01/2022
Currency
changes
Other
Cash changes
Balance
31/12/2022
Financial liabilities
Lease liabilities
10
1,023.4
12.1
385.0
-190.0
1,230.4
Current borrowings
13
68.5
-1.1
0.0
8.4
75.9
Non-current borrowings
13
311.5
0.0
0.0
-60.0
251.5
Total
1,403.4
11.1
385.0
-241.6
1,557.8
The lease liabilities of € 1,232.4 million (previous year: € 1,230.4 million) break down into current lease
liabilities of € 212.4 million (previous year: € 200.2 million) and non-current lease liabilities of
€ 1,020.0 million (previous year: € 1,030.3 million).
26. OTHER FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES
OTHER FINANCIAL OBLIGATIONS
The Company has other financial obligations associated with license, promotional and advertising
agreements, which give rise to the following financial obligations as of the balance sheet date:
↗ T.87 COMMITMENTS FROM LICENSE, PROMOTIONAL AND ADVERTISING AGREEMENTS
(in € million)
2023
2022
From license, promotional and advertising agreements:
Due within one year
402.4
348.6
Due between one and five years
1,203.5
781.1
Due after five years
314.2
130.8
Total
1,920.2
1,260.5
As is customary in the industry, the promotional and advertising agreements provide for additional
payments on reaching pre-defined goals (e.g. medals, championships). These are contractually agreed, but
by their nature cannot be predicted exactly in terms of their timing and amount.
In addition, there are other financial obligations totalling € 246.5 million, of which, € 146.5 million relate to
the years from 2025. These include service agreements of € 234.2 million as well as other obligations of
€ 12.3 million.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
363
CONTINGENT LIABILITIES
Individual PUMA companies are involved in legal disputes arising from normal operating activities, e.g.
relating to intellectual property rights and employee matters. If an outflow of resources from these legal
disputes is classified as probable and the amount of the obligation can be reliably estimated, the risks
arising from these legal disputes are included in the other provisions. However, if the probability of
occurrence is classified as low, these legal disputes are recognised as contingent liabilities, which are
estimated at € 0.8 million in this financial year (previous year: € 3.1 million). Contingent liabilities also exist
due to uncertainties in the appraisal of the facts by the tax and customs authorities in India. Based on
external reports, the Management currently assumes that the receivables of Indian tax and customs
authorities will not result in any cash outflow. Overall, the PUMA Management considers that the impact of
the total of the contingent liabilities on the net assets, financial position and results of operations of the
Company is immaterial.
27. COMPENSATION OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD
Disclosures pursuant to Section 314(1) 6 HGB (German Commercial Code [Handelsgesetzbuch]) in
conjunction with Section 315e HGB.
COMPENSATION OF THE MEMBERS OF THE MANAGEMENT BOARD
The total compensation of the members of the Management Board in financial year 2023 was € 10.3 million
(previous year: € 11.9 million).
The total remuneration of the Management Board includes the share-based remuneration granted for the
financial year with a fair value of € 4.2 million (previous year: € 1.7 million) and 81,279 performance shares
were issued (previous year: 16,457). The total remuneration for the previous year also includes the issue of
30,968 virtual shares of the PUMA Monetary Unit Plan with a fair value of € 3.0 million.
TOTAL COMPENSATION OF FORMER MEMBERS OF THE MANAGEMENT BOARD
The total remuneration of former members of the Management Board and their surviving dependents
amounted to € 2023 million in financial year 0.7 (previous year: € 0.7 million).
In addition, there were defined benefit pension obligations to former members of the Management Board
and their widows/widowers amounting to € 2.4 million (previous year: € 2.5 million) as well as defined
contribution plans from deferred compensation of former members of the Management Board and
Managing Directors amounting to € 47.2 million (previous year: € 17.3 million). Both items are recognised
accordingly within pension provisions to the extent they were not offset against plan assets of an equal
amount.
COMPENSATION OF THE SUPERVISORY BOARD
The compensation paid to the Supervisory Board comprised fixed compensation and additional
compensation for committee activities, and amounted to a total of € 0.4 million (previous year:
€ 0.2 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
364
28. DISCLOSURES RELATED TO NON-CONTROLLING INTERESTS
The summarised financial information about subsidiaries of the Group in which non-controlling interests
exist is presented below. This financial information relates to all companies with non-controlling interests in
which the identical non-controlling shareholder holds an interest. The figures represent the amounts before
intercompany eliminations.
Evaluation of the control of companies with non-controlling interests:
The Group holds a 51% capital share in PUMA United North America LLC, PUMA United Canada ULC and
Janed Canada LLC (inactive company). With these companies, there are profit-sharing arrangements in
place which differ from the capital share for the benefit of the respective identical non-controlling
shareholder. PUMA receives higher license fees in exchange.
In addition, there is a shareholding in the capital and the result, amounting to 70%, in the company PUMA
United Aviation North America LLC.
The contractual agreements with these companies respectively provide PUMA with a majority of the voting
rights at the shareholder meetings, and thus the right of disposal regarding these companies. PUMA is
exposed to fluctuating returns from the sales-based license fees and from variable earnings. The Group
also controls the key activities of these companies. The companies are accordingly included in the
consolidated financial statements as subsidiaries with full consolidation with recognition of non-controlling
interests.
The non-controlling interests existing on the balance sheet date relate to PUMA United North America LLC,
PUMA United Canada ULC, Janed Canada, LLC (inactive) and PUMA United Aviation North America LLC at
€ 28.9 million (previous year: € 67.1 million).
The following tables show a summary of the financial information for subsidiaries with non-controlling
interests:
↗ T.88 ASSETS AND LIABILITIES (in € million)
2023
2022
Current assets
112.9
105.8
Non-current assets
8.6
10.3
Current liabilities
85.3
40.4
Non-current liabilities
0.0
0.0
Net assets
36.3
75.7
Net assets attributable to non-controlling interests
28.9
67.1
PUMA Annual Report 2023
↗ Consolidated Financial Statements
365
↗ T.89 INCOME STATEMENT (in € million)
2023
2022
Sales
411.8
452.2
Net income
56.8
72.0
Profit attributable to non-controlling interests
55.7
70.9
Other comprehensive income of non-controlling interests
4.3
4.1
Total comprehensive income of non-controlling interests
54.2
75.0
Dividends paid to non-controlling interests
92.4
73.3
↗ T.90 CASH (in € million)
2023
2022
Net cash from operating activities
101.8
79.4
Net cash used in investing activities
-0.3
0.0
Net cash used in financing activities
-101.4
-80.1
Changes in cash and cash equivalents
0.0
-0.4
29. RELATED PARTY RELATIONSHIPS
In accordance with IAS 24, relationships to related companies and persons that control or are controlled by
the PUMA Group must be reported. All natural persons and companies that can be controlled by PUMA, that
can exercise relevant control over the PUMA Group or that are under the relevant control of another related
party of the PUMA Group are considered to be related companies or persons within the meaning of IAS 24.
As of 31 December 2023, there was one shareholding in PUMA SE that exceeded 20% of the voting rights.
This is held by the Pinault family via several companies that the family controls (in order of proximity to the
Pinault family: Financière Pinault S.C.A., Artémis S.A.S. and Kering S.A.). The share of Kering S.A. in
PUMA SE amounted to 1.47% of the share capital at 18 September 2023. Combined, the shareholdings of
Artémis S.A.S. and Kering S.A. amounted to 29.99% of the share capital of PUMA SE at 18 September 2023.
Since Artémis S.A.S. and Kering S.A. hold more than 20% of the voting rights in PUMA SE, they are
presumed to have significant influence according to IAS 28.5 and IAS 28.6. They and all other companies
directly or indirectly controlled by Financière Pinault S.C.A. that are not included in the consolidated
financial statements of PUMA SE are considered as related parties in the following.
In addition, the disclosure obligation pursuant to IAS 24 extends to transactions with associated companies
as well as transactions with other related companies and persons.
Transactions with related companies and persons largely concern sales of goods and licensing agreements.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
366
The following overview illustrates the scope of the business relationships:
↗ T.91 DELIVERIES AND SERVICES RENDERED AND RECEIVED (in € million)
Deliveries and services rendered
Deliveries and services received
2023
2022
2023
2022
Companies included in the Artémis Group
2.1
1.7
0.0
0.1
Other related companies and persons
0.0
0.0
0.0
0.0
Total
2.1
1.7
0.0
0.1
↗ T.92 NET RECEIVABLES AND LIABILITIES (in € million)
Net receivables from
Liabilities to
2023
2022
2023
2022
Companies included in the Artémis Group
0.3
0.3
0.0
0.0
Other related companies and persons
0.0
0.0
0.0
0.0
Total
0.3
0.3
0.0
0.0
Receivables from related companies and persons are not subject to value adjustments.
Classification of the remuneration of key management personnel in accordance with IAS 24.17:
The members of key management personnel in accordance with IAS 24 are the Management Board and the
Supervisory Board. These are counted as related parties.
In financial year 2023, the remuneration of the members of the Management Board of PUMA SE for short-
term benefits amounted to € 6.1 million (previous year: € 7.2 million), for termination benefits to
€ 0.0 million (previous year: € 0.0 million) and the share-based payment € 1.4 million (previous year:
€ -0.5 million). Furthermore, just like in the previous year, no remuneration was granted in the form of
other long-term benefits or in the form of post-employment benefits in the reporting year. Accordingly, the
total expenditure for the reporting year amounted to € 7.5 million (previous year: € 6.7 million).
In financial year 2023, the remuneration of the members of the Supervisory Board of PUMA SE for short-
term benefits amounted to € 0.4 million (previous year: € 0.2 million).
PUMA Annual Report 2023
↗ Consolidated Financial Statements
367
30. CORPORATE GOVERNANCE
In November 2023, the Management Board and the Supervisory Board submitted the required compliance
declaration with respect to the recommendations issued by the Government Commission German Corporate
Governance Code pursuant to Section 161 of the German Stock Corporation Act (Aktiengesetz – AktG) and
published it on the Company's website (https://about.PUMA.com). Please also refer to the corporate
governance statement in accordance with section 289f and section 315d HGB (Handelsgesetzbuch, German
Commercial Code) in the Combined Management Report.
31. EVENTS AFTER THE BALANCE SHEET DATE
No events with any significant effect on the net assets, financial position and results of operations of the
PUMA Group occurred after the balance sheet date.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
368
32. DATE OF RELEASE
The Management Board of PUMA SE released the consolidated financial statements on 7 February 2024 for
distribution to the Supervisory Board. The task of the Supervisory Board is to review the consolidated
financial statements and state whether it approves them.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
This is a translation of the German version. In case of doubt, the German version shall apply.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
369
APPENDIX 1 OF THE CONSOLIDATED FINANCIAL STATEMENT
MEMBERS OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD AND THEIR MANDATES
STATUS: 31 DECEMBER 2023
MEMBERS OF THE MANAGEMENT BOARD AND THEIR MANDATES
Arne Freundt
Chief Executive Officer (CEO)
Hubert Hinterseher
Chief Financial Officer (CFO)
Anne-Laure Descours
Chief Sourcing Officer (CSO)
Maria Valdes (since 1 January 2023)
Chief Product Officer (CPO)
MEMBERS OF THE SUPERVISORY BOARD AND THEIR MANDATES
Héloïse Temple-Boyer (first elected on 18 April 2019)
(Chair)
Paris, France
Deputy CEO of ARTÉMIS S.A.S., Paris/France
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises
2
• Kering S.A., Paris/France
• Christie's International Plc., London/ United Kingdom
• CAA LL.C., Los Angeles/USA
• Giambattista Valli S.A.S., Paris/France
• Société d'exploitation de l’hebdomadaire le Point S.A., Paris/France
• Pinault Collection, Paris/France
2
All mandates are mandates within the ARTÈMIS/KERING-Group. Only Kering S.A. is a listed company.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
370
Thore Ohlsson (first elected on 21 May 1993)
(Deputy Chair)
Falsterbo, Sweden
President of Elimexo AB, Falsterbo/Sweden
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
• Tomas Frick AB, Vellinge/Sweden
• Orrefors Kosta Boda AB, Kosta/Sweden
• Infinitive AB, Malmö/Sweden
• Friskvårdcenter AB, Malmö/Sweden
• Totestories AB, Vellinge/Sweden
Jean-Marc Duplaix (first elected on 24 May 2023)
Paris, France
Deputy CEO of Kering S.A., Paris/France
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises
3:
• Balenciaga S.A., Paris/Frankreich
Jean-François Palus (first elected on 16 June 2007, until 24 May 2023)
Paris, France
Managing Director of Guccio Gucci S.p.A., Florence/Italy
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
• Financière Pinault S.C.A., Paris/France
• Sonova Management S.A.S., Paris/France
• Bureau Veritas S.A., Paris/France
Fiona May (first elected on 18 April 2019)
Calenzano, Italy
Independent Management Consultant
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
3
The mandate is a mandate within the Kering Group. Kering S.A. is a listed company. Balenciaga S.A. is not listed
PUMA Annual Report 2023
↗ Consolidated Financial Statements
371
Martin Köppel (first elected on 25 July 2011)
(Employees‘ Representative)
Adelsdorf, Germany
Chair of the Works Council of PUMA SE
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
Bernd Illig (first elected on 9 July 2018)
(Employees‘ Representative)
Bechhofen, Germany
Teamhead IT Endpoint Management of PUMA SE
Membership in other statutory supervisory boards in Germany: None
Membership in comparable domestic and foreign controlling bodies of commercial enterprises: None
SUPERVISORY BOARD COMMITTEES
Personnel Committee
• Héloïse Temple-Boyer (Chair)
• Fiona May
• Martin Köppel
Audit Committee
• Jean-Marc Duplaix (Chair since 24 May 2023)
• Thore Ohlsson (Chair until 24 May 2023)
• Héloïse Temple-Boyer (until 24 May 2023)
• Bernd Illig
Nominating Committee
• Héloïse Temple-Boyer (Chair)
• Jean-François Palus (until 24 May 2023)
• Fiona May
• Jean-Marc Duplaix (since 24 May 2023)
Sustainability Committee
• Fiona May (Chair)
• Héloïse Temple-Boyer
• Martin Köppel
PUMA Annual Report 2023
↗ Consolidated Financial Statements
372
DECLARATION BY THE LEGAL REPRESENTATIVES
We state to the best of our knowledge that the consolidated financial statements give a true and fair view of
the net assets, financial position and results of operations of the Group in accordance with the applicable
accounting principles, and that the Group management report, which is combined with the Management
report of PUMA SE for the financial year 2023, provides a true and fair view of the course of the development
and performance of the business and the position of the Group, together with a description of the principal
risks and opportunities associated with the expected performance of the Group.
Herzogenaurach, 7 February 2024
The Management Board
Freundt
Hinterseher
Descours
Valdes
PUMA Annual Report 2023
↗ Consolidated Financial Statements
373
INDEPENDENT AUDITOR’S REPORT
For the Consolidated Financial Statements and Group Management Report we have issued an unqualified
auditor’s report. The English language text below is a translation of the auditor’s report. The original
German text shall prevail in the event of any discrepancies between the English translation and the
German original. We do not accept any liability for the use of, or reliance on, the English translation or for
any errors or misunderstandings that may derive from the translation.
To PUMA SE, Herzogenaurach
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE
COMBINED MANAGEMENT REPORT
OPINIONS
We have audited the consolidated financial statements of PUMA SE, Herzogenaurach, and its subsidiaries
(the Group), which comprise the consolidated statement of financial position as of December 31, 2023, the
consolidated income statement, the consolidated statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the financial year from
January 1 to December 31, 2023, and notes to the consolidated financial statements, including a summary of
significant accounting policies. In addition, we have audited the management report of the Company and the
Group (combined management report) of PUMA SE for the financial year from January 1 to
December 31, 2023.
In accordance with German legal requirements, we have not audited the content of those components of the
combined management report specified in the "Other Information" section of our auditor's report.
The combined management report contains cross-references that are not provided for by law and which are
marked as unaudited. In accordance with German legal requirements, we have not audited the cross-
references and the information to which the cross-references refer.
In our opinion, on the basis of the knowledge obtained in the audit,
• the accompanying consolidated financial statements comply, in all material respects, with the IFRSs as
adopted by the EU, and the additional requirements of German commercial law pursuant to Section
315e (1) HGB [Handelsgesetzbuch: German Commercial Code] and, in compliance with these
requirements, give a true and fair view of the assets, liabilities, and financial position of the Group as of
December 31, 2023, and of its financial performance for the financial year from January 1 to
December 31, 2023, and
• the accompanying combined management report as a whole provides an appropriate view of the Group's
position. In all material respects, this combined management report is consistent with the consolidated
financial statements, complies with German legal requirements and appropriately presents the
opportunities and risks of future development. Our opinion on the combined management report does
not cover the content of those components of the combined management report specified in the "Other
Information" section of the auditor's report. The combined management report contains cross-
references that are not provided for by law and which are marked as unaudited. Our audit opinion does
not extend to the cross-references and the information to which the cross-references refer.
Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated financial statements and of the combined management
report.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
374
BASIS FOR THE OPINIONS
We conducted our audit of the consolidated financial statements and of the combined management report in
accordance with Section 317 HGB and the EU Audit Regulation No 537/2014 (referred to subsequently as
"EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial
Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany]
(IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's
Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management
Report" section of our auditor's report. We are independent of the group entities in accordance with the
requirements of European law and German commercial and professional law, and we have fulfilled our
other German professional responsibilities in accordance with these requirements. In addition, in
accordance with Article 10 (2)(f) of the EU Audit Regulation, we declare that we have not provided non-audit
services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis for our opinions on the consolidated financial
statements and on the combined management report.
KEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the financial year from January 1 to December 31, 2023.
These matters were addressed in the context of our audit of the consolidated financial statements as a
whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.
Revenue recognition cut-off for wholesale customers
For information on the accounting policies applied, please refer to Sections 2 and 19 in the notes to the
consolidated financial statements.
THE FINANCIAL STATEMENT RISK
The consolidated financial statements of PUMA SE for financial year 2023 report revenue of
EUR 8,601.7 million. Revenue includes revenue of EUR 6,468.6 million from the sale of goods to wholesale
customers.
The Group recognizes revenue from the sale of goods to wholesale customers when it fulfils a performance
obligation through the transfer of a promised asset to a customer. An asset is transferred when (or as) the
customer obtains control of that asset. In accordance with the transfer of control, revenue from wholesale
customers is recognized at a point in time in the amount to which the Group is entitled.
The Management Board of PUMA SE has defined the criteria for the recognition of revenue at a point in time
in a group-wide accounting policy and implemented processes for correct recognition and cut-off.
In the final weeks prior to the reporting date, a range of transactions with wholesale customers take place
with individual contractual agreements on the transfer of risk. In addition, there are internally defined and
externally communicated revenue targets for the financial year, which represent a key benchmark for
measuring corporate success.
There is the risk for the consolidated financial statements that revenue in the reporting year is overstated
due to it being recognized in the wrong period, meaning that it is not recorded on an accrual basis.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
375
OUR AUDIT APPROACH
In order to audit revenue recognition cut-off for wholesale customers, we assessed the design, setup and
effectiveness of the internal controls relating to outgoing goods and the acceptance of goods and invoicing,
in particular the determination and verification of the correct transfer of control. In addition, we reviewed
the presentation of revenue recognition in the group-wide accounting policy to ensure compliance with
IFRS 15.
Furthermore, we assessed revenue recognition cut-off for wholesale customers by reconciling invoices with
the related orders, underlying contracts and external delivery records. This was based on revenue
recognized at the end of December 2023 and selected using a mathematical/statistical procedure.
OUR OBSERVATIONS
PUMA SE's approach to revenue recognition cut-off with wholesale customers is appropriate.
Impairment testing of right-of-use assets for retail stores
For information on the accounting policies applied, please refer to Sections 2 and 10 in the notes to the
consolidated financial statements.
THE FINANCIAL STATEMENT RISK
As of December 31, 2023, right-of-use assets of EUR 1,087.7 million are recognized in the consolidated
financial statements of PUMA SE. A significant portion of the right-of-use assets is attributable to retail
stores (EUR 464.2 million). Right-of-use assets amount to 16.4% of total assets and thus have a material
influence on the Company's net assets.
Owing to the large number of leases and the resulting transactions, the Company has set up group-wide
processes and controls for the measurement of leases.
Right-of-use assets for retail stores are tested for impairment at the level of the individual retail stores as
cash-generating units. The impairment test compares the carrying amount of the cash-generating unit with
its recoverable amount. The Company determines the recoverable amount for the retail stores indicating
potential impairment by using the discounted cash flow method. If the carrying amount exceeds the
recoverable amount, an impairment loss is recognized for the right-of-use asset of the cash-generating
unit. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use.
Impairment testing of right-of-use assets for retail stores is complex and based on a range of assumptions
that require judgment. Among others, these include the business and earnings performance of the retail
store for the next year, the assumed growth rates, the applied discount rate and the use of extension
options. The Company recognized impairment losses in the amount of EUR 5.7 million for right-of-use
assets for retail stores during the financial year.
In particular owing to the judgments for measuring right-of-use assets for retail stores, there is the risk for
the consolidated financial statements that an impairment of right-of-use assets may not be identified.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
376
OUR AUDIT APPROACH
Using the information obtained during our audit, we assessed whether there were any indicators of
impairment for right-of-use assets for retail stores. In doing so, we thoroughly examined the Company's
approach to determining the need to recognize impairment losses and, based on the information obtained in
the course of our audit, assessed whether there were any indications of impairment that had not been
identified by the Company.
With the involvement of our valuation specialists, for a sample of retail stores selected based on risk, we
then assessed (among other things) the appropriateness of the Company's calculation method. For this
purpose we discussed the expected business and earnings development for the retail stores selected in this
sample and the assumed growth rates with those responsible for planning. Where accounting judgments
were made for determining the lease term, we examined these judgments to determine whether the
underlying assumptions were comprehensible in light of the prevailing market conditions and risks in the
industry.
We also assessed the accuracy of the Company's previous forecasts for the affected right-of-use assets by
comparing the budgets from the previous financial year for the selected retail stores in the sample with the
actual results, and we analyzed any deviations. Further, we compared the assumptions and data underlying
the discount rates with our own assumptions and publicly available data. We also assessed whether the
calculation method for the discount rate was appropriate.
We verified the computational accuracy of the carrying amount of the right-of-use assets determined by
PUMA SE for the retail stores included in the sample.
In order to take forecast uncertainty into account, we examined the impact of potential changes in the
discount rate, earnings performance and long-term growth rates on the value in use by calculating
alternative scenarios for the selected sample and comparing these with the values stated by the Company
(sensitivity analysis).
OUR OBSERVATIONS
The calculation method used for impairment testing of right-of-use assets for retail stores is appropriate
and in line with the accounting policies to be applied.
The Company's assumptions and data used for the measurement of the right-of-use assets for retail stores
are appropriate.
OTHER INFORMATION
The Management Board and/or the Supervisory Board is responsible for the other information. The other
information comprises the following components of the combined management report, whose content was
not audited:
• the Company's and Group's separate combined non-financial report, which is referred to in the
combined management report, and
• the combined corporate governance statement for the Company and Group, which is included in a
separate section of the combined management report, and
• information extraneous to combined management reports and marked as unaudited.
The other information also includes the annual report, which is expected to be made available to us after
the date of this independent auditor's report. The other information does not include the consolidated
financial statements, the combined management report information audited for content and our auditor's
report thereon.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
377
Our opinions on the consolidated financial statements and on the combined management report do not
cover the other information, and consequently we do not express an opinion or any other form of assurance
conclusion thereon.
In connection with our audit, our responsibility is to read the other information and, in so doing, to consider
whether the other information
• is materially inconsistent with the consolidated financial statements, with the combined management
report information audited for content or our knowledge obtained in the audit, or
• otherwise appears to be materially misstated.
RESPONSIBILITIES OF THE MANAGEMENT BOARD AND THE SUPERVISORY BOARD FOR THE
CONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT
The Management Board is responsible for the preparation of consolidated financial statements that comply,
in all material respects, with IFRSs as adopted by the EU and the additional requirements of German
commercial law pursuant to Section 315e (1) HGB and that the consolidated financial statements, in
compliance with these requirements, give a true and fair view of the assets, liabilities, financial position,
and financial performance of the Group. In addition, the Management Board is responsible for such internal
control as it has determined necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and
misappropriation of assets) or error.
In preparing the consolidated financial statements, the Management Board is responsible for assessing the
Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable,
matters related to going concern. In addition, they are responsible for financial reporting based on the going
concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or
there is no realistic alternative but to do so.
Furthermore, the Management Board is responsible for the preparation of the combined management
report that, as a whole, provides an appropriate view of the Group’s position and is, in all material respects,
consistent with the consolidated financial statements, complies with German legal requirements, and
appropriately presents the opportunities and risks of future development. In addition, the Management
Board is responsible for such arrangements and measures (systems) as they have considered necessary to
enable the preparation of a combined management report that is in accordance with the applicable German
legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the
combined management report.
The Supervisory Board is responsible for overseeing the Group's financial reporting process for the
preparation of the consolidated financial statements and of the combined management report.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF
THE COMBINED MANAGEMENT REPORT
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and whether the combined
management report as a whole provides an appropriate view of the Group’s position and, in all material
respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit,
complies with the German legal requirements and appropriately presents the opportunities and risks of
future development, as well as to issue an auditor’s report that includes our opinions on the consolidated
financial statements and on the combined management report.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
378
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally
Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW)
will always detect a material misstatement. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements and this combined
management report.
We exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements and of
the combined management report, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than
the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal controls.
• Obtain an understanding of internal control relevant to the audit of the consolidated financial statements
and of arrangements and measures (systems) relevant to the audit of the combined management report
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of these systems.
• Evaluate the appropriateness of accounting policies used by the Management Board and the
reasonableness of estimates made by the Management Board and related disclosures.
• Conclude on the appropriateness of the Management Board's use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group's ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's
report to the related disclosures in the consolidated financial statements and in the combined
management report or, if such disclosures are inadequate, to modify our respective opinions. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the Group to cease to be able to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements present the underlying
transactions and events in a manner that the consolidated financial statements give a true and fair view
of the assets, liabilities, financial position and financial performance of the Group in compliance with
IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to
Section 315e (1) HGB.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express opinions on the consolidated financial statements and on
the combined management report. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our opinions.
• Evaluate the consistency of the combined management report with the consolidated financial
statements, its conformity with [German] law, and the view of the Group's position it provides.
• Perform audit procedures on the prospective information presented by the Management Board in the
combined management report. On the basis of sufficient appropriate audit evidence we evaluate, in
particular, the significant assumptions used by the Management Board as a basis for the prospective
information, and evaluate the proper derivation of the prospective information from these assumptions.
We do not express a separate opinion on the prospective information and on the assumptions used as a
basis. There is a substantial unavoidable risk that future events will differ materially from the
prospective information.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
379
We also provide those charged with governance with a statement that we have complied with the relevant
independence requirements, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, the actions taken or safeguards
applied to eliminate independence threats.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation
precludes public disclosure about the matter.
OTHER LEGAL AND REGULATORY REQUIREMENTS
REPORT ON THE ASSURANCE ON THE ELECTRONIC RENDERING OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND THE COMBINED MANAGEMENT REPORT PREPARED FOR PUBLICATION PURPOSES IN
ACCORDANCE WITH SECTION 317 (3A) HGB
We have performed assurance work in accordance with Section 317 (3a) HGB to obtain reasonable
assurance about whether the rendering of the consolidated financial statements and the combined
management report (hereinafter the "ESEF documents") contained in the electronic file „PUMA KA 2023.zip“
(SHA256-Hashwert: 3d9c82efdcc3657b21661fc4c90debfbfafac65be5b3f152055611b47a544d9b) made available
and prepared for publication purposes complies in all material respects with the requirements of
Section 328 (1) HGB for the electronic reporting format ("ESEF format"). In accordance with German legal
requirements, this assurance work extends only to the conversion of the information contained in the
consolidated financial statements and the combined management report into the ESEF format and
therefore relates neither to the information contained in these renderings nor to any other information
contained in the file identified above.
In our opinion, the rendering of the consolidated financial statements and the combined management
report contained in the electronic file made available, identified above and prepared for publication
purposes complies in all material respects with the requirements of Section 328 (1) HGB for the electronic
reporting format. Beyond this assurance opinion and our audit opinion on the accompanying consolidated
financial statements and the accompanying combined management report for the financial year from
January 1 to December 31, 2023, contained in the "Report on the Audit of the Consolidated Financial
Statements and the Combined Management Report" above, we do not express any assurance opinion on the
information contained within these renderings or on the other information contained in the file identified
above.
We conducted our assurance work on the rendering of the consolidated financial statements and the
combined management report contained in the file made available and identified above in accordance with
Section 317 (3a) HGB and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of
Financial Statements and Management Reports Prepared for Publication Purposes in Accordance with
Section 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibility in accordance therewith is further described
below. Our audit firm applies the IDW Standard on Quality Management 1: Requirements for Quality
Management in Audit Firms (IDW QMS 1) (09.2022).
Owing to the conversion process selected by the Company concerning the information in the notes in iXBRL
format (block tagging), the consolidated financial statements converted into the ESEF format are not
machine-readable in a fully meaningful respect. There is significant legal uncertainty regarding the legal
conformity of the Management Board's interpretation that meaningful machine-readability of the structured
information in the notes is not explicitly required by Commission Delegated Regulation (EU) 2019/815 for the
block tagging of the notes, which thus also constitutes an inherent uncertainty of our audit.
The Company's Management Board is responsible for the preparation of the ESEF documents including the
electronic rendering of the consolidated financial statements and the combined management report in
PUMA Annual Report 2023
↗ Consolidated Financial Statements
380
accordance with Section 328 (1) sentence 4 item 1 HGB and for the tagging of the consolidated financial
statements in accordance with Section 328 (1) sentence 4 item 2 HGB.
In addition, the Company's Management Board is responsible for such internal control that they have
considered necessary to enable the preparation of ESEF documents that are free from material intentional
or unintentional non-compliance with the requirements of Section 328 (1) HGB for the electronic reporting
format.
The Supervisory Board is responsible for overseeing the process of preparing the ESEF documents as part
of the financial reporting process.
Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material
intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB. We exercise
professional judgment and maintain professional skepticism throughout the assurance work. We also:
• Identify and assess the risks of material intentional or unintentional non-compliance with the
requirements of Section 328 (1) HGB, design and perform assurance procedures responsive to those
risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our
assurance opinion.
• Obtain an understanding of internal control relevant to the assurance on the ESEF documents in order to
design assurance procedures that are appropriate in the circumstances, but not for the purpose of
expressing an assurance opinion on the effectiveness of these controls.
• Evaluate the technical validity of the ESEF documents, i.e. whether the file made available containing the
ESEF documents meets the requirements of Commission Delegated Regulation (EU) 2019/815, as
amended as of the reporting date, on the technical specification for this electronic file.
• Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the
audited consolidated financial statements and the audited combined management report.
• Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance
with the requirements of Articles 4 and 6 of the Commission Delegated Regulation (EU) 2019/815, as
amended as of the reporting date, enables an appropriate and complete machine-readable XBRL copy of
the XHTML rendering.
FURTHER INFORMATION PURSUANT TO ARTICLE 10 OF THE EU AUDIT REGULATION
We were elected as group auditor at the Annual General Meeting on May 24, 2023. We were engaged by the
Supervisory Board on November 21, 2023. We have been the group auditor of PUMA SE without interruption
since financial year 2022.
We declare that the opinions expressed in this auditor's report are consistent with the additional report to
the Audit Committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).
OTHER MATTER – USE OF THE AUDITOR'S REPORT
Our auditor's report must always be read together with the audited consolidated financial statements and
the audited combined management report as well as the examined ESEF documents. The consolidated
financial statements and combined management report converted to the ESEF format – including the
versions to be entered in the German Company Register [Unternehmensregister] – are merely electronic
renderings of the audited consolidated financial statements and the audited combined management report
and do not take their place. In particular, the ESEF report and our assurance opinion contained therein are
to be used solely together with the examined ESEF documents made available in electronic form.
PUMA Annual Report 2023
↗ Consolidated Financial Statements
381
GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT
The German Public Auditor responsible for the engagement is Matthias Koeplin.
Nuremberg, February 9, 2024
KPMG AG
Wirtschaftsprüfungsgesellschaft
Koeplin
Wirtschaftsprüfer
[German Public Auditor]
Behrendt
Wirtschaftsprüferin
[German Public Auditor]
PUMA Annual Report 2023
↗ Additional Information
382
ADDITIONAL INFORMATION
The PUMA Share
383
PUMA Year-on-Year Comparison
385
PUMA Group Development
387
PUMA Annual Report 2023
↗ Additional Information
383
THE PUMA SHARE
The 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
thus 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
€ 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 / -
21.8%) 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
423 thousand shares in financial year 2023.
↗ T.01 KEY DATA PER SHARE*
2023
2022
2021
2020
2019
2018
2017
End of year price
€
50.52
56.70
107.50
92.28
68.35
42.70
36.30
Highest price listed
€
67.22
108.00
114.70
92.28
72.95
52.50
39.14
Lowest price listed
€
44.36
43.85
80.42
42.14
43.00
31.70
24.35
Daily trading volume (Ø)
amount in
thousands
423
519
281
423
387
444
67
Earnings per share
€
2.03
2.36
2.07
0.53
1.76
1.25
9.09
Gross cashflow per share
€
6.43
6.14
5.49
3.50
4.71
2.66
2.21
Free cashflow (before acquisitions) per
share
€
2.46
1.19
1.85
1.85
2.22
1.00
0.86
Shareholders' equity per share
€
17.23
16.97
15.23
11.79
12.84
11.52
11.09
Dividend per share
€
0.82
0.82
0.72
0.16
0.50
0.35
1.25**
*
Disclosures for the prior periods were adjusted retroactively to the 1:10 stock split carried out in the second quarter of 2019
** one time/special dividend
PUMA Annual Report 2023
↗ Additional Information
384
↗ G.01 PUMA SHARE PERFORMANCE / TRADING VOLUME
↗ G.02 SHARE DEVELOPMENT - REBASED
The PUMA share has been registered for the regulated market on German stock exchanges since 1986. It is
listed in the Prime Standard Segment and the Mid-Cap Index MDAX of the German Stock Exchange
(Deutsche Börse). Moreover, membership in the FTSE4Good index was once again confirmed.
PUMA Annual Report 2023
↗ Additional Information
385
PUMA YEAR-ON-YEAR COMPARISON
↗ T.02 PUMA YEAR-ON-YEAR COMPARISON (in € million)
2023
2022
Deviation
Sales
Consolidated sales
8,601.7
8,465.1
1.6%
- Footwear
4,583.4
4,317.9
6.1%
- Apparel
2,763.0
2,896.3
-4.6%
- Accessories
1,255.3
1,251.0
0.3%
Result of operations
Gross profit
3,986.6
3,902.7
2.1%
EBIT
621.6
640.6
-3.0%
EBT
478.3
551.7
-13.3%
Net earnings attributable to shareholders of PUMA SE
304.9
353.5
-13.7%
Profitability
Gross profit margin
46.3%
46.1%
0.2%pt
EBT margin
5.6%
6.5%
-1.0%pt
Net earnings margin
3.5%
4.2%
-0.6%pt
Return on capital employed (ROCE)
25.1%
28.4%
-3.3%pt
Return on equity (ROE)
11.8%
13.9%
-2.1%pt
Balance sheet
Total equity
2,582.3
2,538.8
1.7%
- Equity ratio
38.9%
37.5%
1.4%pt
Working capital
1,177.3
1,086.8
8.3%
- in % of consolidated sales
13.7%
12.8%
0.8%pt
Cash flow and investments
Gross cash flow
964.1
918.9
4.9%
Free cash flow
369.0
177.5
107.9%
Investments (before acquisitions)
300.4
263.6
13.9%
PUMA Annual Report 2023
↗ Additional Information
386
2023
2022
Deviation
Employees
Number of employees (annual average)
18,023
16,669
8.1%
Sales per employee (k€)
477.3
507.8
-6.0%
PUMA share
Share price (in €)
50.52
56.70
-10.8%
Average outstanding shares (in million)
149.85
149.65
0.1%
Number of shares outstanding as of 31 Dec. (in million shares)
149.84
149.76
0.1%
Earnings per share (in €)
2.03
2.36
-14.0%
Market capitalization
7,570
8,491
-10.8%
Average trading volume (amount/day)
423,200
519,477
-18.5%
PUMA Annual Report 2023
↗ Additional Information
387
PUMA GROUP DEVELOPMENT
↗ T.03 PUMA GROUP DEVELOPMENT (in € million)
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Sales
Consolidated sales
8,601.7
8,465.1
6,805.4
5,234.4
5,502.2
4,648.3
4,135.9
3,626.7
3,387.4
2,972.0
- Change in %
1.6%
24.4%
30.0%
-4.9%
18.4%
12.4%
14.0%
7.1%
14.0%
-0.4%
- Footwear
4,583.4
4,317.9
3,163.6
2,367.6
2,552.5
2,184.7
1,974.5
1,627.0
1,506.1
1,282.7
- Apparel
2,763.0
2,896.3
2,517.3
1,974.1
2,068.7
1,687.5
1,441.4
1,333.2
1,244.8
1,103.1
- Accessories
1,255.3
1,251.0
1,124.5
892.7
881.1
776.1
719.9
666.5
636.4
586.3
Result of operations
Gross profit
3,986.6
3,902.7
3,257.8
2,458.0
2,686.4
2,249.4
1,954.3
1,656.4
1,540.2
1,385.4
- Gross profit margin
46.3%
46.1%
47.9%
47.0%
48.8%
48.4%
47.3%
45.7%
45.5%
46.6%
Royalty and commission income
38.5
33.8
23.9
16.1
25.1
16.3
15.8
15.7
16.5
19.4
EBIT
621.6
640.6
557.1
209.2
440.2
337.4
244.6
127.6
96.3
128.0
- EBIT margin
7.2%
7.6%
8.2%
4.0%
8.0%
7.3%
5.9%
3.5%
2.8%
4.3%
EBT
478.3
551.7
505.3
162.3
417.6
313.4
231.2
118.9
85.0
121.8
- EBT margin
5.6%
6.5%
7.4%
3.1%
7.6%
6.7%
5.6%
3.3%
2.5%
4.1%
Net earnings attributable to shareholders of PUMA SE
304.9
353.5
309.6
78.9
262.4
187.4
135.8
62.4
37.1
64.1
- Net margin
3.5%
4.2%
4.5%
1.5%
4.8%
4.0%
3.3%
1.7%
1.1%
2.2%
PUMA Annual Report 2023
↗ Additional Information
388
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Expenses
Marketing/retail
1,643.2
1,578.5
1,309.1
1,050.2
1,112.1
931.2
822.9
732.3
697.6
599.7
Personnel
900.6
846.5
712.4
583.7
640.5
553.8
549.1
493.1
483.8
425.3
Balance sheet
Total assets
6,640.4
6,772.7
5,728.3
4,684.1
4,378.2
3,207.2
2,853.8
2,765.1
2,620.3
2,549.9
Total equity
2,582.3
2,538.8
2,278.5
1,763.9
1,902.3
1,722.2
1,656.7
1,722.2
1,619.3
1,618.3
- Equity ratio
38.9%
37.5%
39.8%
37.7%
43.4%
53.7%
58.1%
62.3%
61.8%
63.5%
Working capital
1,177.3
1,086.8
727.9
465.8
549.4
503.9
493.9
536.6
532.9
455.7
- thereof: inventories
1,804.4
2,245.1
1,492.2
1,138.0
1,110.2
915.1
778.5
718.9
657.0
571.5
Cash flow
Free cash flow
369.0
177.5
276.2
276.0
330.0
172.9
128.5
49.7
-98.9
39.3
Investments (incl. acquisitions)
300.4
263.6
202.4
151.0
218.4
130.2
122.9
91.1
79.5
96.4
Profitability
Return on equity (ROE)
11.8%
13.9%
13.6%
4.5%
13.8%
10.9%
8.2%
3.6%
2.3%
4.0%
Return on capital employed (ROCE)
25.1%
28.4%
31.9%
15.1%
29.6%
25.8%
20.7%
10.3%
7.9%
11.5%
PUMA Annual Report 2023
↗ Additional Information
389
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Additional information
Number of employees (year-end)
18,681
18,071
16,125
14,374
14,332
12,894
11,787
11,495
11,351
11,267
Number of employees (annual average)
18,023
16,669
14,846
13,016
13,348
12,192
11,389
11,128
10,988
10,830
PUMA share*
Share price (in €)
50.52
56.70
107.50
92.28
68.35
42.70
36.30
24.97
19.87
17.26
Earnings per share (in €)
2.03
2.36
2.07
0.53
1.76
1.25
0.91
0.42
0.25
0.43
Average outstanding shares (in million)
149.85
149.65
149.59
149.56
149.52
149.47
149.43
149.40
149.40
149.40
Number of shares outstanding as of 31 Dec.
(in million shares)
149.84
149.76
149.61
149.58
149.55
149.51
149.46
149.40
149.40
149.40
Market capitalization
7,570
8,491
16,083
13,804
10,222
6,384
5,426
3,730
2,968
2,578
*
Disclosures for the prior periods were adjusted retroactively to the 1:10 stock split carried out in the second quarter of 2019
PUMA Annual Report 2023
↗ Imprint
390
IMPRINT
PUBLISHER
PUMA SE
PUMA Way 1
91074 Herzogenaurach
Germany
+49 (0)9132 81-0
www.about.puma.com
CORPORATE COMMUNICATIONS
Kerstin Neuber
Senior Director Corporate Communications
kerstin.neuber@puma.com
INVESTOR RELATIONS
Gottfried Hoppe
Director Investor Relations & Finance Strategy
gottfried.hoppe@puma.com
PEOPLE & ORGANIZATION
Dietmar Knoess
Vice President People & Organization
dietmar.knoess@puma.com
SUSTAINABILITY
Stefan Seidel
Senior Director Corporate Sustainability
stefan.seidel@puma.com
Veronique Rochet
Senior Director Sustainability
veronique.rochet@puma.com
DESIGN AND LAYOUT
3st kommunikation GmbH
www.3st.de
REALISATION
Produced inhouse with firesys
www.firesys.de
HALF-YEAR FINANCIAL REPORT
JANUARY TO JUNE 2024
2
CONTENT
Key Figures
3 - 4
Interim Management Report
- General Economic Conditions
5
- Brand and Strategy Update
5 - 8
- Sales and Earnings Development
9 - 11
- Net Assets and Financial Position
12
- Outlook
13
Condensed Interim Consolidated Financial Statements
- Balance Sheet
14
- Income Statement
15
- Statement of Comprehensive Income
16
- Cashflow Statement
17
- Statement of Changes in Equity
18
- Operating Segments
19 - 20
- Notes to the Interim Consolidated Financial Statements
21 – 27
Management Board / Supervisory Board
28
Financial Calendar
29
3
Arne Freundt, CEO:
“With our second quarter operating performance,
we fully delivered on our outlook for the quarter and
are well on track to deliver on our outlook for the full
year. I could not be prouder of our team and our
strong retail partnerships, which were key to
delivering this result in an environment of increased
currency headwinds, stressed supply chains and
macroeconomic and geopolitical challenges that are
weighing on consumer sentiment around the world.
With view to our strong orderbook for the second
half of the year, we reiterate our sales growth
outlook in the MSD range and are narrowing our full-
year EBIT outlook range to € 620 – 670 million EBIT
in light of these external factors.
With our continued focus on a good sell-through and
disciplined sell-in, we were able to improve our
wholesale business in all regions, except EEMEA.
With our strong order book for the second half of
the year, we will see further improvement in our
wholesale business in the coming quarters. The
robust demand for the PUMA brand continues to be
driven by our great product newness and innovation
which we launched in the past months. There is
more to come in the second half of the year.
Key Figures
1-6/2024
1-6/2023
Devi-
€ million
€ million
ation
Sales
4,219.6
4,308.3
-2.1%
Gross profit margin
47.2%
45.7%
Operating result (EBIT)
276.2
290.9
-5.1%
Net income
129.3
172.3
-25.0%
- in % of sales
3.1%
4.0%
Total assets
6,966.3
6,899.7
1.0%
Equity ratio in %
38.1%
37.1%
Working capital
1,643.7
1,693.0
-2.9%
Gross cash flow
388.1
491.4
-21.0%
Free cash flow (before acquisitions)
-204.4
-341.4
Earnings per share (in €)
0.86
1.15
-25.0%
Gross cash flow per share (in €)
2.59
3.28
-21.0%
Free cash flow per share (before acquisitions) (in €)
-1.36
-2.28
Share price at end of the reporting period (in €)
42.87
55.12
-22.2%
Market capitalisation at end of the reporting period
6,397
8,255
-22.5%
Investments in property, plant and equipment and intangible assets
125.4
158.0
-20.7%
4
On the performance side, ULTRA, PUMA’s fastest
football boot, Deviate Nitro Elite 3, PUMA’s fastest
running shoe, and MB.04, PUMA’s latest version of
its bestseller signature shoe with LaMelo Ball will be
the key newness and innovations for the second half
of 2024. Together with our new design partner
Salehe Bembury, we will continue to stir up the
basketball market with new disruptive designs in the
coming year.
On the Sportstyle side, we are continuing to see
strong sell-through with our family footwear retail
partners, while we are making good progress in the
transition of our Sportstyle Prime offer with Palermo,
Suede XL and Easy Rider. We are very encouraged
by the first launches of Speedcat in the elevated
distribution channels globally and by the great
feedback of our retail partners on our product line-
up. We are very confident about the future success
of the low-profile silhouette and are happy to
welcome Rosé, the iconic K-Pop star, as great new
ambassador for this emerging trend.
We continue to focus our efforts on increasing the
brand desirability for the long-term growth of the
PUMA brand. With our first global brand campaign
in ten years, we have done the first steps and
improved our brand consideration with consumers.
Delivering great innovation and newness are further
pillars of that strategy. With the Euros, Copa
America and now the Olympics, we have the perfect
stage to create great brand visibility and credibility
in our unmissable “fireglow” shoe colourway and
showcase the superiority of our Nitro foam
technology which enhances the performance of elite
and everyday athletes. We are very proud of the
achievements of our athletes and are grateful to
celebrate these amazing sporting events and iconic
moments together with them.”
5
Interim Management Report
GENERAL ECONOMIC CONDITIONS
According to the summer forecast published by the
Kiel Institute for the World Economy (ifw Kiel) on 13
June 2024, the global economy has expanded at a
moderate pace so far this year. The main reason for
this was that production in the emerging economies
- and particularly in China - grew much more
strongly than before. In the advanced economies,
on the other hand, economic expansion continued at
a somewhat slower pace overall.
BRAND AND STRATEGY UPDATE
Making Progress in Brand Elevation
With many important events such as the Olympic
Games, UEFA Euro 2024 and CONMEBOL Copa
America, 2024 is undoubtedly a year of sports.
PUMA took this as an opportunity to launch our
biggest-ever brand campaign to elevate the
brand, one of the cornerstones of our strategy
together with increasing product excellence and
improving our distribution quality.
The campaign “FOREVER. FASTER. - See The
Game Like We Do” conveys the brand’s unique
connection with speed and is communicated across
the entire media mix, such as Social Media, TV, PR,
Out Of Home Media and Points of Sale worldwide.
Following the launch in April, from which we
received very positive feedback, PUMA followed
up with additional chapters of the campaign fully
dedicated to Euro 2024, Copa America and our
best-in-class athletes at these events such as
Neymar Jr., Xavi Simons, Kai Havertz and Cody
Gakpo.
Great Performances by PUMA Athletes and
Teams
The great performance of our sponsored teams and
athletes underscored our credibility as a sports
brand across the world. At Euro 2024, our players
and teams ensured fantastic visibility throughout
the tournament, with PUMA-Teams Austria and
Switzerland
putting
up
some
fantastic
performances to progress to the knock-out stages.
The success of our club teams also contributed to
our brand visibility, as Manchester City secured
the Premier League title for the fourth consecutive
year, while Borussia Dortmund reached the final
of the Champions League, Europe’s most coveted
competition.
With
French
defender
Theo
Hernández and US midfielder Weston McKenny,
PUMA signed two young players at the top of their
game to become brand ambassadors.
In track and field, PUMA athletes broke three world
records in the first half of 2024, underscoring the
great performance of our spikes. Ukrainian high
jumper Yaroslava Mahuchickh showed her
incredible form ahead of the Olympic Games by
breaking the 37-year-old high jump world record
with a 2.10m jump. Pole vaulter Armand “Mondo”
Duplantis once again soared to new heights,
breaking his own world record for the ninth time by
raising the bar to 6.25m. In March, Devynne
Charlton from the Bahamas set a new 60m hurdles
world record. Our track and field athletes also shone
at the European Athletics Championships in Rome,
winning seven gold, ten silver and seven bronze
medals.
Supported
by
our
award-winning
NITROTM
technology, our road running athletes also went
from strength to strength this year. For the first time
in decades, PUMA athletes reached the podium
at international marathon majors, with Vivian
Cheruiyot coming in third in Paris and Edna Kiplagat
taking third position in Boston.
At the Olympic Games in Paris, PUMA equips 17
federations and more than 350 athletes across a
range of different sports. Most recently, PUMA
joined forces with the Athletic Federation of India as
an Official Kit Partner. PUMA will also outfit seven
federations at the Paralympic Games in Paris.
Throughout this year of sports, PUMA enjoyed great
visibility with the eye-catching “fireglow” colours of
our football boots and track and field spikes worn by
our athletes.
6
To build on our strong portfolio of brand
ambassadors on the entertainment side, we
welcomed Rosé, a member of one of the best-
selling girl groups of all time, South Korean musical
quartet BLACKPINK. With a dedicated fanbase
across the globe, the K-Pop idol will support classic
franchises in PUMA’s Sportstyle category including
the Palermo.
Rebounding in China
PUMA has focused on strengthening its credibility as
a sports brand in China, for example by sponsoring
the Diamond League event in Xiamen and by
being among the top 10 brands at the Wuxi
Marathon, one of the world’s largest running
events. To capture the popularity of basketball in the
country, PUMA took its NBA ambassador Scoot
Henderson on a tour of China.
The announcement of our collaboration with K-Pop
star Rosé also struck a chord with Chinese
consumers, as it generated PUMA’s biggest social
media stir in China over the past years. The Formula
1 Grand Prix in China gave us the opportunity to
showcase the best of the PUMA brand and the
Formula 1 collection in a successful live event on
Chinese e-commerce platform Tmall, which
engaged millions of viewers. PUMA also leveraged
its ambassadors from the world of music and
entertainment to further build up brand momentum
in Sportstyle. In 2024, PUMA signed singer-
songwriter Henry Lau and featured him in a
successful dance campaign which created great
engagement on social media.
Henry Lau also helped PUMA promote locally
designed apparel collections, which incorporated
local fitting and design details and resonated well
with consumers. Our Palermo and Speedcat
sneakers became bestselling franchises, with the
Speedcat immediately selling out at its initial launch.
These and other measures resulted in PUMA
continuing to build up momentum to rebound
in China despite the difficult market environment.
This was underscored by the results of the recent
6/18 shopping holiday, where PUMA clearly
exceeded last year’s results.
Winning in the USA
As official partners of CONMEBOL, the Copa
America tournament in the US offered a great
opportunity to position PUMA as a performance
brand in the country and enjoy great visibility. We
harnessed the appeal of our football brand
ambassadors Neymar Jr. and Christian Pulisic,
who hosted events ahead of the tournament to
create excitement.
In road running, our NITROTM technology propelled
Fiona O’Keeffe and Dakotah Lindwurm to first and
third at the US Olympic Marathon Trials,
underscoring our successful return to performance
running. Our lightweight NITROFOAM™, which
offers exceptional rebound, also features in our
basketball style All-Pro NITRO™, which became
the official shoe of leading amateur basketball circuit
NXTPro Hoops. PUMA used the cultural appeal of
motorsports to launch an exclusive collection with
Ferrari for the Miami Grand Prix, which sold out
immediately.
We drove brand heat through our strong
partnerships with ambassadors from music and
entertainment, especially PUMA’s power couple
Rihanna and A$AP Rocky. Rihanna continues to
make waves with the back-to-school editions of her
sneakers Creeper and Avanti while A$AP Rocky
teamed up with PUMA to present the Inhale
sneaker, an immediate sell-out success. PUMA
doubled down on its culture-first approach to
basketball by signing trailblazing footwear designer
Salehe Bembury, to reimagine the signature shoe
category in basketball.
In terms of organisation, we welcomed Tara McRae
as Senior Vice President Marketing and Brand
Strategy North America. She will lead all elements of
the North American Marketing organisation to drive
profitable growth and build brand equity. Tara had
already worked at PUMA previously but spent the
past four years as the Chief Marketing Officer &
Digital Officer at Clark’s.
To be closer to our most important entertainment
and music ambassadors, we announced that we
would open a creative space in Los Angeles that will
design campaigns and products for the US market.
To support future growth in the US market from an
operational point of view, PUMA opened a new
distribution centre in Arizona.
7
Ongoing Momentum in Performance
The success of our athletes highlights the
performance of our products and our design and
development teams introduced exciting new
innovations to the market in the first half of 2024.
In football, the seventh generation of the FUTURE
boot empowers our athletes, such as Neymar Jr., Kai
Havertz and Julia Grosso to experience a new level
of freedom of movement. PUMA also unveiled the
sixth edition of its speed boot ULTRA with a new
high-performance outsole design, which generated
great sell through.
The gripping performances of PUMA-Teams Austria
and Switzerland led to a sell-out success of the
jerseys, while the fan shirt campaign with German
comparison platform Check24 generated fantastic
visibility in the summer of sports.
In Running, the third iteration of PUMA’s award-
winning running shoe Deviate NITROTM is
engineered with even more NITROFOAM™ to deliver
supreme cushioning and responsiveness. Our
innovations are also recognised by running experts
around the world, as PUMA’s ultimate race-day
running shoe FAST-R2 was awarded the prestigious
Spanish CORREDOR award for the best new shoe of
the year.
Our running models will feature prominently in our
new global partnership with HYROX, the world
series of fitness racing. As part of the agreement,
PUMA will develop a full range of innovative HYROX
apparel and bespoke footwear models.
In Baskeball, PUMA used the great momentum of
the signature basketball shoes with NBA-star
LaMelo Ball, to expand into a signature lifestyle
series with him. The LaFrancé sneaker gets its
inspiration and name from LaMelo’s official lifestyle
brand specialising in designer streetwear. PUMA
introduced the latest signature shoe with WNBA
star Breanna Stewart, the Stewie 3, which apart
from its striking design incorporates the latest of
PUMA’s performance technology.
In Golf, Cobra launched a new driver series called
DARKSPEED. It was designed by aerospace
engineers and is built for extraordinary speed and
distance.
Building Up Traction with Sportstyle Newness
PUMA presented significant product newness in its
Sportstyle offering. Maximising the current terrace
and skate trends, we launched new versions of our
successful Palermo and Suede XL sneakers, which
are continuing to resonate well with our consumers.
The classic running style Easy Rider, with its
sought-after T-toe style, was also brought back for
a new generation, with great feedback from our
accounts and customers. To raise awareness for
PUMA’s other Classics franchises, we launched the
communications platform “Rewrite the Classics”.
PUMA also helped create the next trends, as we
showed with the successful introduction of our low-
profile styles Mostro and Speedcat. We believe
that given our amazing archive of low-profile
sneakers, we can own and lead this emerging trend.
By taking PUMA’s new styles to the catwalk and
collaborating with A$AP Rocky, renowned fashion
designer Kid Super and others for Paris Fashion
Week, PUMA secured in-depth coverage from the
most prestigious fashion magazines in the world.
Sought-after collaborations with British rapper
Skepta, who introduced the Skope Forever sneaker
and the football-inspired “Más Tiempo” collection,
and a collection with best-selling anime series One
Piece, were a sell-out success.
Making Strong Progress in Sustainability
In the first half of 2024, PUMA achieved significant
milestones in its sustainability journey. We scaled up
our RE:FIBRE technology, which transforms textile
waste into new materials, and made millions of our
replica shirts for 35 clubs and all teams at Euro 2024
with this recycled material.
In footwear, we introduced a commercial version of
our RE:SUEDE for sale, following a successful two-
year
composting
experiment.
This
project
demonstrated that a special version of our classic
Suede sneaker can be turned into compost under
certain industrial conditions.
8
We are encouraged that these initiatives and others,
which are part of PUMA’s FOREVER. BETTER.
sustainability strategy, were recognised, when
TIME Magazine listed PUMA on the “World’s Most
Sustainable Companies” ranking as the only
company in our industry.
Organisational Changes
In May, Harsh Saini and Roland Krüger were
elected as independent members of the PUMA’s
Supervisory Board for a period of three years.
Harsh Saini is a sustainability expert and has worked
for brands such as the Body Shop, Nike and the Fung
Group wheras Roland Krüger is an expert in the field
of retail management, marketing, and digitalisation.
He currently serves as a member of the Board of
Directors of Dyson Holdings.
9
Sales and Earnings Development
SECOND QUARTER 2024
Sales
Sales grew by 2.1% (ca) to € 2,117.3 million, while
currencies continued to be a headwind, negatively
impacting sales in euro terms by approximately € 50
million in Q2 2024 (-0.2% reported).
Sales in the Americas region increased by 9.0% (ca)
to € 887.5 million, with both the U.S. and LATAM
contributing to the growth and showing a sequential
improvement. The Asia/Pacific region recorded sales
growth of 1.9% (ca) to € 411.9 million, driven by
continued growth in Greater China and sequential
improvement in the rest of APAC. In the EMEA
region, sales decreased by 4.3% (ca) to € 817.9
million due to a decline in EEMEA from a strong prior
year quarter (EEMEA grew +111% ca in Q2 2023),
while Europe returned to growth.
PUMA's Wholesale business declined by 3.3% (ca)
to € 1,529.6 million, due to the decline in EEMEA. In
all other regions, the wholesale business improved
quarter-on-quarter, driven by continued good sell-
through and improved inventory levels in the trade.
Our Direct-to-Consumer (DTC) business grew by
19.5% (ca) to € 587.7 million, supported by
continued brand momentum and scaled back
promotions. Sales in owned & operated retail stores
increased 16.5% (ca) and e-commerce increased
of 27.8% (Q2 2023: 24.3%), in line with
expectations.
Sales in Footwear were flat (ca) at € 1,097.0 million
on the back of a strong prior year quarter (Q2 2023:
+18.2% ca) with all Performance categories as well
as Sportstyle Core performing very well. Sales in
Apparel grew by 9.2% (ca) to € 705.6 million, while
sales in Accessories declined by 4.7% (ca) to € 314.8
million.
Gross Profit Margin
The gross profit margin improved by 200 basis
points to 46.8% (Q2 2023: 44.8%). Significant
headwinds from currencies were more than offset by
a favourable product and distribution channel mix as
well as tailwinds from sourcing and freight.
Operating Expenses
Operating expenses (OPEX) increased by 4.3% to
€ 879.3 million (Q2 2023: € 843.4 million). The
increase was primarily due to the continued growth
of our DTC business and ramp-up costs of
warehouse and digital infrastructure projects while
all non-demand creating costs remained under
strong
control.
In
addition,
currency-related
headwinds weighed on the OPEX ratio, which
increased by 180 basis points to 41.5% (Q2 2023:
39.8%).
Operating Result (EBIT)
The operating result (EBIT) increased by 1.6% to
€ 117.2 million (Q2 2023: € 115.3 million), despite
negative currency effects on sales, gross profit
margin and OPEX ratio. Consequently, the EBIT
margin improved by 10 basis points to 5.5% (Q2
2023: 5.4%).
Financial Result
The financial result decreased to € -42.6 million (Q2
2023: € -23.0 million) due to higher currency related
losses and a lower interest result.
Net Income and Earnings per Share
Consequently, net income decreased by 23.8% to
€ 41.9 million (Q2 2023: € 55.0 million) and earnings
per share amounted to € 0.28 (Q2 2023: € 0.37).
The development of the operating result and net
income is fully in line with our expectations that the
second half of the year, particularly in the fourth
quarter, will be stronger than the first half, and that
net income will improve in line with the operating
result outlook for FY 2024.
10
Sales by regions and product divisions
€ million
2024
2023
Euro
currency
adjusted
2024
2023
Euro
currency
adjusted
Breakdown by regions
EMEA
817.9
846.0
-3.3%
-4.3%
1,673.7
1,729.7
-3.2%
-2.2%
Americas
887.5
861.5
3.0%
9.0%
1,677.5
1,689.4
-0.7%
5.1%
Asia/Pacific
411.9
413.3
-0.3%
1.9%
868.5
889.2
-2.3%
1.2%
Total
2,117.3
2,120.7
-0.2%
2.1%
4,219.6
4,308.3
-2.1%
1.3%
Breakdown by product divisions
Footwear
1,097.0
1,126.0
-2.6%
0.0%
2,278.4
2,336.4
-2.5%
1.6%
Apparel
705.6
663.3
6.4%
9.2%
1,313.7
1,311.0
0.2%
3.5%
Accessories
314.8
331.3
-5.0%
-4.7%
627.5
660.9
-5.1%
-4.0%
Total
2,117.3
2,120.7
-0.2%
2.1%
4,219.6
4,308.3
-2.1%
1.3%
growth rates
Second Quarter
First Half-Year
Q2
growth rates
1-6
11
FIRST HALF-YEAR 2024
Sales
Sales increased by 1.3% (ca) to € 4,219.6 million.
Currencies were a major headwind, negatively
impacting sales in euro terms by approximately
€ 150 million in H1 2024 (-2.1% reported).
The Americas region led the growth with a sales
increase of 5.1% (ca) to € 1,677.5 million, followed
by the Asia/Pacific region with a sales increase of
1.2% (ca) to € 868.5 million, while sales in the EMEA
region declined by 2.2% (ca) to € 1,673.7 million.
PUMA’s Wholesale business declined by 3.1% (ca)
to € 3,137.7 million as a result of disciplined sell-in
and focus on good sell-through in preparation for a
stronger sell-in in H2 2024. Our Direct-to-Consumer
(DTC) business increased by 16.7% (ca) to
€ 1,081.9 million. Sales in owned & operated retail
stores increased 16.0% (ca) and e-commerce
increased 18.1% (ca). This resulted in an increased
DTC share of 25.6% (H1 2023: 22.8%).
Among product divisions, sales in Footwear
increased by 1.6% (ca) to € 2,278.4 million and
Apparel grew by 3.5% (ca) to € 1,313.7 million.
Accessories decreased by 4.0% (ca) to € 627.5
million.
Gross Profit Margin
The gross profit margin increased by 150 basis
points to 47.2% (H1 2023: 45.7%). Major
headwinds from currencies were more than offset by
a favourable product and distribution channel mix as
well as tailwinds from sourcing and freight.
Operating Expenses
Operating expenses (OPEX) increased by 1.9% to
€ 1,724.6 million (H1 2023: € 1,691.7 million). The
continued growth of our DTC business and ramp-up
costs for infrastructure projects were the main
drivers of this increase. As a result, the OPEX ratio
was up 160 basis points to 40.9% (H1 2023:
39.3%), also impacted by currency headwinds.
Result before Interest, Taxes, Depreciation
and Amortisation (EBITDA)
The result before interest, taxes, depreciation and
amortisation (EBITDA) decreased to € 445.8 million
in the first half of 2024 (last year: € 455.6 million).
Operating Result (EBIT)
The operating result (EBIT) decreased by 5.1% to
€ 276.2 million (H1 2023: € 290.9 million), mainly
due to negative currency effects on sales, the gross
profit margin and the OPEX ratio, which resulted in
an EBIT margin of 6.5% (H1 2023: 6.8%).
Financial Result
The financial result decreased to € -69.4 million (H1
2023: € -30.8 million) due to a lower interest result
and higher currency related losses.
Net Income and Earnings per Share
Consequently, net income decreased by 25.0% to
€ 129.3 million (H1 2023: € 172.3 million) and
earnings per share amounted to € 0.86 (H1 2023:
€ 1.15).
The development of the operating result and net
income is fully in line with our expectations that the
second half of the year, particularly in the fourth
quarter, will be stronger than the first half, and that
net income will improve in line with the operating
result outlook for FY 2024.
12
Net Assets and Financial Position
Working Capital
The working capital decreased by 2.9% to € 1,643.7
million (30 June 2023: € 1,693.0 million).
Inventories decreased by 8.6% to € 1,961.1 million
(30 June 2023: € 2,145.9 million). The quarter-on-
quarter increase mainly reflects the stronger order
book for the second half of the year. The Group's
total inventory remains at a healthy level, while
quality has further improved. Trade receivables
increased by 3.4% to € 1,394.7 million (30 June
2023: € 1,348.4 million). On the liabilities side, trade
payables increased by 13.1% to € 1,647.9 million
(30 June 2023: € 1,457.3 million).
Cashflow and Liquidity Situation
The free cash flow was at € -204.4 million in the first
half of 2024 (H1 2023: € -341.4 million). As of
30 June 2024, PUMA had cash and cash equivalents
of € 271.8 million (30 June 2023: € 307.9 million).
In addition, the PUMA Group had available credit
lines totalling € 1,411.7 million as of 30 June 2024
(30 June 2023: € 1,592.5 million). Unutilised credit
lines amounted to € 595.4 million as of 30 June 2024
(30 June 2023: € 846.0 million).
13
Outlook 2024
Global Economy
According to the summer forecast published by the
Kiel Institute for the World Economy (ifw Kiel) on 13
June 2024, the moderate global economic expansion
is likely to continue this year. The experts at ifw Kiel
expect an increase in global production of around
3.2% for 2024 as a whole. There are risks with
regard to a longer than previously expected
restrictive monetary policy. Further risks for the
global economy are primarily of a geopolitical nature
and result not least from the uncertainties
surrounding the US presidential election.
Investments
Investments in fixed assets of around € 300 million
are planned for 2024. The majority of these
investments will be in infrastructure in order to
create the operating conditions required for the
planned long-term growth. The investments mainly
concern own distribution and logistics centers,
investments in the expansion and modernisation of
the company's own retail stores and investments in
IT infrastructure.
As in previous years, PUMA will continue to focus on
managing
short-term
challenges
without
compromising the brand's medium- and long-term
momentum. Our sales growth and market share
gains will take priority over short-term profitability.
The very positive feedback from our retail partners
and consumers on our 2024/2025 product line-up
and go-to-market strategies gives us confidence for
the medium and long term success and continued
growth of PUMA
Outlook 2024
The first half of the year was characterised by a
volatile environment with persistent currency
headwinds, stressed supply chains and muted
consumer sentiment globally. In this challenging
environment, PUMA continued to make progress on
its strategic initiatives of brand elevation, product
excellence and distribution quality with special focus
on the U.S. and China, and focused on strong sell-
through and the best possible service to its retail
partners, brand ambassadors and consumers.
Based on the results of the first half year and
supported by building brand momentum as well as
by our strong orderbook for the second half of the
year, PUMA reiterates its outlook for the financial
year 2024 of mid-single-digit currency-adjusted
sales growth. Taking into account the external
factors of higher freight costs, changing duties and
continued muted consumer sentiment, especially in
China, we narrow our outlook for the operating
result (EBIT) to a range of € 620 million to € 670
million. We expect net income to change in 2024 in
line with the operating result.
.
14
Condensed Interim Consolidated Financial Statements (IFRS)
June 30,'24
June 30,'23
Devi-
Dec. 31,'23
€ million
€ million
ation
€ million
ASSETS
Cash and cash equivalents
271.8
307.9
-11.7%
552.9
Inventories *
1,961.1
2,145.9
-8.6%
1,804.4
Trade receivables *
1,394.7
1,348.4
3.4%
1,118.4
Other current assets *
493.8
374.3
31.9%
385.6
Other current assets
101.3
77.2
31.3%
69.8
Current assets
4,222.7
4,253.6
-0.7%
3,931.1
Deferred tax assets
282.8
327.6
-13.7%
296.1
Right-of-use assets
1,069.2
1,063.2
0.6%
1,087.7
Other non-current assets
1,391.6
1,255.3
10.9%
1,325.6
Non-current assets
2,743.7
2,646.1
3.7%
2,709.3
Total Assets
6,966.3
6,899.7
1.0%
6,640.4
LIABILITIES AND EQUITY
Current borrowings
466.6
360.6
29.4%
145.9
Trade payables *
1,647.9
1,457.3
13.1%
1,499.8
Other current liabilities *
558.0
718.3
-22.3%
631.3
Current lease liabilities
213.0
197.1
8.1%
212.4
Other current liabilities
15.8
73.5
-78.4%
47.7
Current liabilities
2,901.3
2,806.7
3.4%
2,537.2
Non-current borrowings
357.8
427.6
-16.3%
426.1
Deferred tax liabilities
18.4
51.5
-64.3%
12.4
Pension provisions
24.0
20.1
19.2%
22.5
Non-current lease liabilities
982.2
997.3
-1.5%
1,020.0
Other non-current liabilities
29.0
34.4
-15.8%
40.0
Non-current liabilities
1,411.3
1,530.8
-7.8%
1,520.9
Equity
2,653.7
2,562.2
3.6%
2,582.3
Total Liabilities and Equity
6,966.3
6,899.7
1.0%
6,640.4
* included in working capital
Balance Sheet
15
Q2/2024
Q2/2023
Devi-
1-6/2024
1-6/2023
Devi-
€ million
€ million
ation
€ million
€ million
ation
Sales
2,117.3
2,120.7
-0.2%
4,219.6
4,308.3
-2.1%
Cost of sales
-1,126.7
-1,170.9
-3.8%
-2,230.0
-2,341.6
-4.8%
Gross profit
990.6
949.8
4.3%
1,989.6
1,966.8
1.2%
- in % of sales
46.8%
44.8%
+2.0 pp
47.2%
45.7%
+1.5 pp
Royalty and commission income
5.9
8.9
-33.4%
11.2
15.9
-29.5%
Other operating income and expenses
-879.3
-843.4
4.3%
-1,724.6
-1,691.7
1.9%
Operating result (EBIT)
117.2
115.3
1.6%
276.2
290.9
-5.1%
- in % of sales
5.5%
5.4%
+0.1 pp
6.5%
6.8%
-0.2 pp
Financial result
-42.6
-23.0
85.7%
-69.4
-30.8
>100%
Earnings before taxes (EBT)
74.6
92.4
-19.3%
206.7
260.1
-20.5%
- in % of sales
3.5%
4.4%
-0.8 pp
4.9%
6.0%
-1.1 pp
Taxes on income
-18.4
-23.0
-20.3%
-51.4
-65.0
-20.9%
- Tax rate
24.6%
24.9%
-0.3 pp
24.9%
25.0%
-0.1 pp
Net income attributable to non-controlling interests
-14.3
-14.3
-0.1%
-26.1
-22.8
14.2%
Net income
41.9
55.0
-23.8%
129.3
172.3
-25.0%
- in % of sales
2.0%
2.6%
-0.6 pp
3.1%
4.0%
-0.9 pp
Earnings per share (€)
0.28
0.37
-23.8%
0.86
1.15
-25.0%
Earnings per share (€) - diluted
0.28
0.37
-23.8%
0.86
1.15
-25.0%
Weighted average shares outstanding (million shares)
149.79
149.80
0.0%
Weighted average shares outstanding - diluted (million shares)
149.83
149.81
0.0%
Second Quarter
First Half-Year
Income Statement
16
Statement of Comprehensive Income
1-6/2024
1-6/2023
€ million
€ million
Consolidated net income of the year before attribution
155.3
195.1
Currency translation differences
57.1
-15.4
Net gain/ loss on cash flow hedges, net after tax
42.2
-15.9
Net gain/ loss from reserve for hedging costs - options, net after taxes
3.9
Net gain/ loss from reserve for hedging costs - forward transactions, net after taxes
-10.9
Items expected to be reclassified to the income statement in the future
92.3
-31.3
Remeasurements of the net defined benefit liability, net after tax
-0.3
1.6
Neutral effects financial assets through other comprehensive income (FVTOCI), net after tax
-0.6
3.6
Items not expected to be reclassified to the income statement in the future
-1.0
5.2
Other comprehensive income
91.3
-26.1
Comprehensive income
246.6
169.1
attributable to:
Non-controlling interests
27.0
21.6
Shareholders of PUMA SE
219.7
147.5
17
1-6/2024
1-6/2023
€ million
€ million
Earnings before taxes (EBT)
206.7
260.1
Financial result and non-cash effected expenses and income
181.4
231.3
Gross cash flow
388.1
491.4
Change in current assets, net
-420.2
-603.9
Payments for taxes on income
-67.4
-96.6
Net cash used in operating activities
-99.5
-209.0
Payments for investing in fixed assets
-125.4
-158.0
Other investing and divestment activities incl. interest received
20.5
25.6
Net cash used in investing activities
-104.9
-132.4
Free cash flow
-204.4
-341.4
Free cash flow (before acquisitions)
-204.4
-341.4
Dividends paid to shareholders of PUMA SE
-122.8
-122.8
Dividends paid to non-controlling interests
-27.0
-23.4
Proceeds from borrowings
374.0
460.9
Cash repayments of borrowings
-125.0
0.0
Repayments of lease liabilities
-110.7
-98.8
Repurchase of treasury shares
-26.5
0.0
Payments of interest
-63.8
-38.7
Net cash used in/ from financing activities
-101.9
177.3
Exchange rate-related changes in cash and cash equivalents
25.1
8.9
Changes in cash and cash equivalents
-281.1
-155.2
Cash and cash equivalents at the beginning of the financial year
552.9
463.1
Cash and cash equivalents at the end of the reporting period
271.8
307.9
Cash Flow Statement
18
Statement of
Subscribed
Capital
Treasury
Share-
Non-
Total
Changes in Equity
capital
reserve
Revenue
Difference
Cash flow
Reserve for
Reserve for
stock
holders'
controlling
Equity
reserves
from
hedges
hedging
hedging costs
equity
interests
incl. retained
currency
costs
- forward
€ million
earnings
conversion
- options
transactions
1 January 2023
150.8
90.8
2,496.2
-256.8
14.2
0.0
0.0
-23.5
2,471.7
67.1
2,538.8
Consolidated net income of the year
0.0
0.0
172.3
0.0
0.0
0.0
172.3
22.8
195.1
Other comprehensive income
0.0
0.0
5.2
-14.2
-15.9
0.0
-24.9
-1.2
-26.1
Comprehensive income
0.0
0.0
177.5
-14.2
-15.9
0.0
147.5
21.6
169.1
Dividends paid to shareholders of
PUMA SE / non-controlling interests
-122.8
-122.8
-23.4
-146.2
Share-based payment and Utilization
/Issue of treasury stock
0.3
0.2
0.4
0.4
30 June 2023
150.8
91.0
2,551.0
-270.9
-1.7
0.0
0.0
-23.3
2,496.8
65.3
2,562.2
31 December 2023
150.8
93.8
2,677.0
-342.7
-3.9
0.0
0.0
-21.6
2,553.4
28.9
2,582.3
Effect of transition to IFRS 9 (hedge
accounting), net after tax
-4.9
-1.3
6.2
0.0
0.0
1 January 2024
150.8
93.8
2,672.1
-342.7
-3.9
-1.3
6.2
-21.6
2,553.4
28.9
2,582.3
Consolidated net income of the year
0.0
0.0
129.3
0.0
0.0
0.0
129.3
26.1
155.3
Other comprehensive income
0.0
0.0
-1.0
56.1
42.2
3.9
-10.9
0.0
90.4
0.9
91.3
Comprehensive income
0.0
0.0
128.3
56.1
42.2
3.9
-10.9
0.0
219.7
27.0
246.6
Gain and loss from hedging, that has
been reclassified to inventories
1.2
1.2
1.2
Dividends paid to shareholders of
PUMA SE / non-controlling interests
-122.8
-122.8
-27.0
-149.8
Share-based payment and Utilization
/Issue of treasury stock
2.9
1.9
4.8
4.8
Repurchase of treasury stock
-31.3
-31.3
-31.3
Changes in the scope of consolidation
-0.1
-0.1
-0.1
30 June 2024
150.8
96.7
2,677.7
-286.7
39.5
2.6
-4.7
-51.0
2,624.9
28.9
2,653.7
Other reserves
19
Operating Segments 1-6/2024
Regions
Sales
EBIT
Investments
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Europe
1,002.5
1,013.0
131.5
129.5
16.2
9.7
EEMEA*
791.0
868.1
166.2
207.7
11.5
12.6
North America
1,024.2
1,037.4
117.5
124.3
28.4
47.1
Latin America
628.2
625.9
122.5
142.7
30.3
44.8
Greater China
314.5
305.1
61.2
52.0
3.5
2.6
Asia/ Pacific (without Greater China)*
201.8
215.6
27.9
32.0
2.3
2.7
stichd
244.7
237.1
34.4
46.0
10.8
6.0
Operating segments in total
4,206.9
4,302.2
661.2
734.1
103.0
125.5
Depreciation and Amortisation
Inventories
Trade Receivables
(3rd party)
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Europe
33.5
30.4
543.8
613.6
275.9
284.1
EEMEA*
31.4
30.8
426.2
410.6
346.6
325.9
North America
42.1
42.0
438.8
611.9
275.9
279.5
Latin America
24.5
15.6
379.5
364.4
277.6
272.2
Greater China
14.8
15.4
112.1
116.2
54.1
40.7
Asia/ Pacific (without Greater China)*
11.0
11.5
64.8
82.2
65.9
68.0
stichd
7.0
5.1
127.9
102.8
95.1
73.4
Operating segments in total
164.2
150.7
2,093.3
2,301.6
1,391.2
1,343.7
Non-current Assets
1-6/2024
1-6/2023
€ million
€ million
Europe
494.9
470.8
EEMEA*
217.3
198.0
North America
776.6
769.3
Latin America
264.0
179.1
Greater China
87.6
84.1
Asia/ Pacific (without Greater China)*
83.7
97.7
stichd
230.3
210.6
Operating segments in total
2,154.4
2,009.7
* Prior year amounts were adjusted due to changes of the structure of the regions EEMEA and Asia/ Pacific (without Greater China)
20
Product
Sales
Gross Profit Margin
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
Footwear
2,278.4
2,336.4
46.2%
44.2%
Apparel
1,313.7
1,311.0
48.2%
47.7%
Accessories
627.5
660.9
48.5%
46.6%
Total
4,219.6
4,308.3
47.2%
45.7%
Reconciliations
Sales
1-6/2024
1-6/2023
€ million
€ million
Operating segments in total
4,206.9
4,302.2
Central Units
12.7
6.2
Total
4,219.6
4,308.3
EBIT
1-6/2024
1-6/2023
€ million
€ million
Operating segments in total
661.2
734.1
Central Units
-146.9
-193.3
Central marketing expenses
-238.0
-249.9
Consolidation
0.0
0.0
EBIT
276.2
290.9
Financial Result
-69.4
-30.8
EBT
206.7
260.1
Investments
Depreciation and Amortisation
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
Operating segments in total
103.0
125.5
164.2
150.7
Central Units
13.2
22.4
19.9
19.3
Consolidation
0.0
0.0
0.0
0.0
Total
116.1
147.9
184.2
170.1
Inventories
Trade Receivables
(3rd party)
Non-current Assets
1-6/2024
1-6/2023
1-6/2024
1-6/2023
1-6/2024
1-6/2023
€ million
€ million
€ million
€ million
€ million
€ million
Operating segments in total
2,093.3
2,301.6
1,391.2
1,343.7
2,154.4
2,009.7
Not allocated to the operating segments
-132.2
-155.7
3.6
4.7
200.8
217.8
Total
1,961.1
2,145.9
1,394.7
1,348.4
2,355.2
2,227.5
21
Explanatory Notes to the Condensed Interim Consolidated Financial Statements (IFRS) as of 30 June 2024
GENERAL REMARKS
Under the “PUMA” brand name, PUMA SE and its
subsidiaries (the “PUMA group”) are engaged in the
development and sales of a broad range of sport and
sportlifestyle products including footwear, apparel
and accessories. The company’s registered head
office is in Herzogenaurach, Federal Republic of
Germany; its responsible court of registration is at
Fürth (Bavaria).
ACCOUNTING STANDARDS
The unaudited financial report of PUMA SE and its
subsidiaries (which together form the PUMA group)
was prepared according to IAS 34 “Interim Financial
Reporting” and should be read in connection with
the consolidated financial statements as of 31
December 2023. The information contained in the
consolidated financial statements as of 31 December
2023, apply to the financial reports for 2024, unless
changes have been explicitly referred to.
In preparing the half-year financial report, the
accounting policies applied and explained for the
consolidated financial statements as of 31 December
2023 were applied consistently with the following
exception.
PUMA is applying the provisions of IFRS 9 for phase
3 hedge accounting for the first time as of 1 January
2024. Previously, the option of continuing to apply
IAS 39 for hedge accounting was exercised. For
reasons of materiality, PUMA does not resatate
comparative information for previous periods.
Consequently, an adjustment was made to the
opening balance sheet as of 1 January 2024. For
existing cash flow hedge relationships, the hedging
cost approach was applied retrospectively on a
mandatory basis for options held as at the opening
date and voluntarily for the components of forward
exchange contracts excluded from the designation.
This resulted in a correction of the opening balance
sheet in a high single-digit million euro amount,
whereby the amount was withdrawn from retained
earnings and allocated to other comprehensive
income.
As under IAS 39, the PUMA Group now also
generally designates the spot component of
currency forwards and the intrinsic value of currency
and interest rate options in a hedging relationship
under IFRS 9. The effective cumulative changes in
fair value resulting from the spot component or the
intrinsic value are initially recognised directly in
equity in the cash flow hedge reserve in other
comprehensive income.
When accounting for currency hedges as cash flow
hedges, the fair values of the option contracts as
well as the forward components and the currency
basis spreads of the forward exchange contracts are
excluded from designation in a hedging relationship.
For these components excluded from designation,
the hedging cost approach is applied mandatorily for
options and voluntarily for currency forwards.
When accounting for interest rate hedges as cash
flow hedges, the fair values of the option
transactions are excluded from designation in a
hedging relationship. The hedging cost approach is
mandatory for these components excluded from
designation.
The effective cumulative changes in market value of
the non-designated components are recognised as
hedging costs in other comprehensive income as a
separate item.
In general, the changes in market value of the
components designated in hedging relationships for
foreign currency hedges accumulated in other
comprehensive
income
are
included
in
the
acquisition costs when hedged non-financial assets
are initially recognised or, in other cases, are
reclassified to sales in the same period as the
22
hedged item affects profit or loss. The adjustment
of non-financial assets affects profit or loss in the
same way and in the same periods as the affected
non-financial items affect profit or loss. A
corresponding disclosure is made both in the
statement of comprehensive income and in the
statement of changes in equity. In the case of
interest rate hedges, the changes in market value
accumulated in accumulated other equity are
reclassified to interest expense. The components
excluded from the designation are reclassified from
other comprehensive income to the financial result.
In the unusual case for the PUMA Group that
derivative financial instruments are not designated
as hedging instruments, they continue to be
classified and measured at fair value through profit
or loss.
This financial report is partly based on assumptions
and estimates which have an impact on the amounts
and on the breakdown of the reported assets and
liabilities as well as of the revenues and expenses.
The actual values may, in some exceptional cases,
differ from these assumptions and estimates at a
later date. The corresponding changes if and when
they occur will be considered as soon as the findings
are revised. The main uncertainties of estimates and
discretionary decisions are described in the
consolidated financial statements as of 31 December
2023.
In this regard, in line with our sales strategy, the
assumptions relating to the allocation of planned
cash inflows in the measurement of right-of-use
assets for retail stores were adjusted in the first half
of 2024 based on better experience. In the first half
of 2024, this led to the reversal of an impairment
loss recognised in the past and last adjusted as of
31 December 2023 in a very low 2-digit million euro
amount. The reversal was recognised in other
operating income and expenses.
SEASONAL VARIANCE
The Group's sales are seasonal and result in varying
sales and resulting profits throughout the year. Sales
and resulting profits tend to be highest in the first
and third quarters of the financial year and inventory
levels tend to be lowest. This is respectively due to
the start of the spring/summer and autumn/winter
collections.
MANAGEMENT SYSTEM
Changes in sales are also influenced by currency
exchange effects. This is why we also state any
changes in sales in euros, the reporting currency,
adjusted for currency exchange effects in order to
provide information that is relevant to the decision-
making process when assessing the revenue
position. Currency-adjusted sales are used for
comparison purposes and are based on the values
that would arise if the foreign currencies included in
the consolidated financial statements were not
converted at the average rates for the previous year,
but were instead translated at the corresponding
average rates for the current year. In the case of
countries
that
are
in
a
hyperinflationary
environment, the previous year's amounts are not
converted at the reporting date rates of the previous
year, but at those of the current reporting year. As
a result, currency-adjusted figures are not to be
regarded as a substitute or as superior financial
indicators, but should instead always be regarded as
additional information.
23
We use the indicator working capital in order to
assess the financial position. Working capital is
essentially the difference between current assets -
including in particular inventories and trade
receivables - and current liabilities. Cash and cash
equivalents, lease receivables, the positive and
negative market values of derivative financial
instruments and current finance and lease liabilities
are not included in working capital.
Net current assets include working capital line
items plus current assets and liabilities, which are
not part of the working capital calculation. Current
lease liabilities are not part of the net current assets.
NOTES TO THE INCOME STATEMENT
The breakdown of the Group's revenues by
distribution channel is as follows:
2024
€ million
2023
€ million
Wholesale
3,137.7
3,327.4
Direct to Consumer-business (Retail)
1,081.9
980.9
Total
4,219.6
4,308.3
EARNINGS PER SHARE
Earnings per share are calculated in accordance with
IAS 33 by dividing the result for the reporting period
by the average number of shares outstanding. The
average number of shares outstanding also includes
vested shares not yet issued. Shares held in treasury
stock reduce both the number of shares outstanding
and the diluted number of shares. Outstanding stock
options from the management incentive programme
can generally lead to a dilution of earnings per
share.
2024
2023
Earnings per share
€ 0.86
€ 1.15
Diluted earnings per share
€ 0.86
€ 1.15
EMPLOYEES
The development of the number of employees on
the basis of full-time equivalents (FTE) is as follows:
2024
2023
Number of employees as of 1 January
18,681
18,071
Number of employees as of 30 June
18,420
17,590
Average number of employees
18,292
17,876
DIVIDEND
The Annual General Meeting on 22 May 2024
approved a dividend of € 0.82 per share for the 2023
financial year. The total amount of the distribution is
€ 122.8 million. The dividend was paid out to the
shareholders in the days following the Annual
General Meeting.
SHAREHOLDERS‘ EQUITY
Subscribed Capital
The subscribed capital amounts to € 150,824,640.00
on the balance sheet date in accordance with the
articles
of
association
and
is
divided
into
150,824,640 no-par value shares with voting rights.
This corresponds to a proportionate amount of
€ 1.00 per share.
Treasury Stock
The resolution adopted by the Annual General
Meeting on 7 May 2020 (adjusted on 5 May 2021)
authorised the company to purchase until 6 May
2025 its own shares to a value of up to ten percent
of the share capital.
Based on the aforementioned authorisation, the
Management Board of PUMA SE approved a share
buyback programme on 29 February 2024. The first
tranche provides for the buyback of treasury shares
with a total purchase price of up to € 100 million and
begins in March 2024 for the period until 6 May
2025.
24
By resolution of the Annual General Meeting on 22
May 2024, the existing authorisation was revoked
and the company was again authorised to acquire
treasury shares of up to ten percent of the share
capital until 21 May 2029.
In the period from March 2024 up to and including
30 June 2024, PUMA SE acquired 700,413 shares in
the first tranche at a total price of € 31,291,030.36
(excluding acquisition costs) and an average
purchase price of approximately € 44.68 per share.
This corresponded to 0.46% of the subscribed
capital.
The company may use the repurchased shares for
all purposes of the authorisation granted. However,
PUMA SE intends to cancel the repurchased shares
in the fourth quarter of 2024.
Further information on the repurchase of treasury
shares can be found in the following table.
Repurchase of Treasury Shares in the
First Half of 2024
Month
Number of shares
Total price in €
Average purchase
price per share
in €
Share of
subscribed capital
in €
Share of
subscribed capital
in %
March
105,713
4,310,868.52
40.78
105,713
0.07%
April
88,714
3,706,587.20
41.78
88,714
0.06%
May
85,933
4,120,879.78
47.95
85,933
0.06%
June
420,053
19,152,694.86
45.60
420,053
0.28%
First half of 2024
in total
700,413
31,291,030.36
44.68
700,413
0.46%
25
At the end of the second quarter, the company held
a total of 1,596,001 PUMA shares in treasury, which
corresponds to 1.06% of the subscribed capital.
Development Number of Shares
2024
2023
Number of shares as of
1 January and as of 30 June
150,824,640 150,824,640
Thereof treasury shares
-1,596,001
-1,057,505
Shares outstanding as of
30 June
149,228,639 149,767,135
Weighted average number
of shares, outstanding
149,786,266 149,801,086
Diluted number of weighted
average shares, outstanding
149,829,651
149,814,188
FINANCIAL INSTRUMENTS
The valuation methods of the fair values according
to levels 1 to 3 are unchanged and can be found in
the consolidated financial statements as of 31
December 2023.
Financial instruments that are measured at fair value
in the balance sheet were determined using the
following hierarchy:
Level 1: Use of prices quoted on active markets for
identical assets or liabilities.
Level 2: Use of input factors that do not involve the
quoted prices stated under Level 1, but can be
observed for the asset or liability either directly (i.e.,
as price) or indirectly (i.e., derivation of prices).
Level 3: Use of factors for the valuation of the asset
or liability that are based on non-observable market
data.
The fair value of the investments held for strategic
reasons only refers to equity instruments of the
category “fair value through OCI” (FVOCI) and is
determined on the basis of level 1. The market
values of derivative assets or liabilities were
determined on the basis of level 2.
26
Measurement
Carrying
amount
Fair Value
Carrying
amount
Fair Value
categories
2024
2024
Level 1
Level 2
Level 3
2023
2023
Level 1
Level 2
Level 3
under IFRS 9
€ million
€ million
€ million
€ million
Assets
Cash and cash equivalents
1)AC
271.8
307.9
Trade receivables
AC
1,394.7
1,348.4
Other current financial assets
Derivatives - hedge accounting
n.a.
58.2
58.2
58.2
39.6
39.6
39.6
Derivatives - no hedge accounting
2)FVPL
25.9
25.9
25.9
21.7
21.7
21.7
Lease receivables
n.a.
15.9
4.3
Remaining current financial assets
AC
54.1
26.7
Other non-current financial assets
Derivatives - hedge accounting
n.a.
5.7
5.7
5.7
3.4
3.4
3.4
Investments
3) FVOCI
20.6
20.6
20.6
25.4
25.4
25.4
Lease receivables
n.a.
24.0
13.8
Remaining non-current financial assets
AC
31.0
34.4
Liabilities
Current borrowings
Bank liabilities
AC
396.6
175.6
Promissory note loans
AC
70.0
68.5
68.5
185.0
183.4
183.4
Trade payables
AC
1,647.9
1,457.3
Current lease liabilities
n.a.
213.0
197.1
Other current financial liabilities
Derivatives - hedge accounting
n.a.
10.6
10.6
10.6
45.7
45.7
45.7
Derivatives - no hedge accounting
2)FVPL
5.2
5.2
5.2
27.6
27.6
27.6
Remaining current financial liabilities
AC
28.7
35.1
Non-current borrowings (promissory note loan)
AC
357.8
357.2
357.2
427.6
419.8
419.8
Non-current lease liabilities
n.a.
982.2
997.3
Other non-current financial liabilities
Derivatives - hedge accounting
n.a.
1.3
1.3
1.3
1.5
1.5
1.5
Remaining non-current financial liabilities
AC
2.2
0.2
Total financial assets at amortised cost
1,751.6
1,717.3
Total financial liabilities at amortised cost
2,503.2
2,280.6
Total financial assets at fair value through profit or loss
25.9
21.7
Total financial liabilities at fair value through profit or loss
5.2
27.6
Total financial assets at FVOCI
20.6
25.4
1) AC = at amortised cost
2) FVPL = fair value through PL
3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income
27
SEGMENT REPORTING
Segment reporting is based on geographical areas
of responsibility in accordance with the PUMA
internal reporting structure, with the exception of
stichd. The geographical area of responsibility
corresponds to the business segment. Sales, the
operating
result
(EBIT)
and
other
segment
information are allocated to the corresponding
geographical areas of responsibility according to the
registered office of the respective Group company.
The internal management reporting includes the
following reporting segments: Europe, EEMEA
(Eastern Europe, Middle East, Africa, India, South
East Asia, Australia and New Zealand), North
America, Latin America, Greater China, Rest of
Asia/Pacific (excluding Greater China, South East
Asia, Australia and New Zealand) and stichd. These
are reported as reportable business segments in
accordance with the criteria of IFRS 8.
The reconciliation includes information on assets,
liabilities, expenses and income in connection with
centralised functions that do not meet the definition
of business segments in IFRS 8. Central expenses
and income include in particular central sourcing
(incl. hedging), central treasury, central marketing,
impairment losses on non-current assets and other
global functions of the Company headquarters.
The Company’s main decision-maker is defined as
the entire Management Board of PUMA SE.
With the exception of stichd’s sales of products
amounting to € 30.2 million (last year: € 20.7
million), there are no significant internal sales
between the business segments, which are
therefore not included in the presentation.
The operating result (EBIT) of the business
segments is defined as gross profit less the
attributable other operating expenses plus royalty
and commission income and other operating
income, but not considering the costs of the central
departments and the central marketing expenses.
Since PUMA is only active in one business field, the
sporting goods industry, products are additionally
allocated according to the footwear, apparel and
accessories product divisions in accordance with the
internal reporting structure.
EVENTS AFTER THE BALANCE SHEET DATE
There were no events after the balance sheet date
which may have a material effect on the financial
situation and earnings position as of 30 June 2024.
Responsibility Statement
“To the best of our knowledge, and in accordance
with the applicable reporting principles for interim
financial reporting, the interim consolidated financial
statements give a true and fair view of the assets,
liabilities, financial position and profit or loss of the
group, and the interim management report of the
group includes a fair review of the development and
performance of the business and the position of the
group, together with a description of the principal
opportunities and risks associated with the expected
development of the group for the remaining months
of the financial year.”
Herzogenaurach, 7 August 2024
The Management Board of PUMA SE
28
Management Board
Arne Freundt
(CEO, Chief Executive Officer)
Anne-Laure Descours
(CSO, Chief Sourcing Officer)
Maria Valdes
(CPO, Chief Product Officer)
Hubert Hinterseher
(CFO, Chief Financial Officer)
Supervisory Board
Héloïse Temple-Boyer
(Chair)
Jean-Marc Duplaix
(Deputy Chairman)
Fiona May
Harsh Saini (since 22 May 2024)
Roland Krüger (since 22 May 2024)
Thore Ohlsson (until 22 May 2024)
(Deputy Chairman)
Martin Koeppel
(Employees‘ Representative)
Bernd Illig
(Employees‘ Representative)
29
Financial Calendar FY 2024
27 February 2024
Financial Results FY 2023
8 May 2024
Quarterly Statement Q1 2024
22 May 2024
Annual General Meeting
7 August 2024
Half-Year Financial Report 2024
6 November 2024
Quarterly Statement Q3 2024
The financial releases and other financial information are available on the
Internet at „about.puma.com“.
Published by
PUMA SE
PUMA Way 1
D-91074 Herzogenaurach
Tel.:
+49 (0)9132 81-0
email:
investor-relations@puma.com
Internet:
http://www.puma.com
Notes relating to forward-looking statements:
This document contains statements about the future business development and strategic direction of the Company. The forward-looking statements are based on management's current
expectations 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
combined 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
developments. We therefore assume no liability for the accuracy of these forecasts.
PUMA
PUMA 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
by 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
collaborates 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
more than 120 countries, employs about 21,000 people worldwide and is headquartered in Herzogenaurach/Germany.
For more information, please visit https://about.puma.com.choice A
7%
choice B
6%
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5%
choice D
4%
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