EANS-News: PUMA AG Rudolf Dassler Sport / PUMA AG announces its Consolidated Financial Results for the Fourth Quarter and Financial Year 2010

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Financial Figures/Balance Sheet

Herzogenaurach (euro adhoc) - Herzogenaurach, Germany, February 15,
2011 - PUMA AG announces its Consolidated

Financial Results for the Fourth Quarter and Financial Year 2010

Highlights Fourth Quarter 2010:

• Consolidated sales increased by 28.2% to EUR 623 million, posting record
sales
• Gross profit margin softened to 45.4% due to shift in regional mix,
hedging, and sourcing prices
• Operating result before special items increased by 2.6% to EUR 41.1 million
• EPS improved to EUR 0.93
• PUMA´s "Back on the Attack" plan presented in October outlined the
company´s future growth strategy

Highlights January - December 2010:

• Consolidated sales increased by 10.6% in Euro terms to more than EUR 2.7
billion for the first time
• Gross profit margin stood strong at 49.7%
• Operating result before special items improved by 12.7% to EUR 337.8 million
• EBT more than doubled to EUR 301.5 million
• Net earnings improved by 154.0% to EUR 202.2 million
• EPS increased significantly to EUR 13.45 from EUR 5.28 last year
• Balance sheet ratios and cash position remained strong

Outlook 2011:

• Despite a lack of major sporting events in 2011, Management expects sales
to increase by mid to high single-digits for the full year.
• Due to investments in marketing, product and process optimization that
are part of our "Back on the attack" strategy, management expects the
OPEX ratio to increase.
• Net Earnings expected to improve by mid single-digits assuming a modest
increase in sourcing costs related to raw materials and wages.

Jochen Zeitz, CEO: "We finished the year with record sales in
a strong quarter, contributing to an overall solid sales and
operational performance in 2010, which clearly demonstrates the
strength of our brand and company in an improving consumer
environment. I am pleased to see that our sales outlook also
continues to look positive and that PUMA´s organic growth is more
than intact. We are well positioned to tap into PUMA´s full
brand potential with our strategic five-year company growth plan.
Our focus will now be to develop and grow our existing core
product categories as well as PUMA's key strategic markets,
and to invest in marketing and R&D while continuing to boost our
sales globally."

The Year 2010

PUMA is back on the attack! In the past financial year 2010, PUMA
posted a new record in sales and managed to increase profitability
accordingly. Hence, PUMA has successfully overcome the economic
crisis and has laid the foundation to achieve the growth targets
defined for the coming years.

The football World Cup on the African continent, where PUMA sponsored
seven of the participating teams, of which four were African
teams, proved to be a particular highlight for the PUMA brand
in 2010. Furthermore, the Company celebrated the extension of the
sponsoring agreement with Usain Bolt, and also witnessed Sebastian
Vettel being crowned as the youngest world champion in the history
of Formula One. Sebastian Vettel belongs to the Red Bull racing
team, which was sponsored by PUMA. In addition to these sporting
highlights, PUMA set new standards in 2010 through the introduction
of a revolutionary new packing system, "Clever Little Bag" which
was part of a comprehensive sustainability drive that was
introduced to the public with the mission of PUMA to be the most
desirable and sustainable Sportlifestyle company.

In the full year 2010, global brand sales increased by 3.1%
currency-adjusted, while consolidated sales rose by 3.6%
currency-adjusted. In Euro terms sales increased by 10.6% to
more than EUR 2.7 billion successfully resuming the positive
sales trend that was interrupted by the financial crisis in
2009. PUMA´s gross profit margin decreased slightly to 49.7%,
maintaining its position in the upper echelons of the sporting
goods industry. The cost reduction, reorganization and process
optimization measures that had already been initiated by
Management in the year before were continued in 2010.
However, one-off expenses of EUR 31.0 million, which are related to
the discovery of fraudulent activities at a joint venture in
Greece, incurred in the reporting year, which also required a
restatement of the comparative figures for December 31, 2009.

Including the above-mentioned special items, the operating profit
(EBIT) more than doubled to 306.8 million from EUR 146.4 million
last year, and earnings per share stood at EUR 13.45, compared to
EUR 5.28 in the previous year.

PUMA´s expansion strategy was successfully continued in 2010 by
means of acquisition of the "Cobra Golf" brand, completing our
product range within the golf category with clubs. Within the scope
of its sustainability strategy, PUMA acquired a 20.1% stake in
Wilderness Holdings Ltd., a company dedicated to responsible
eco-tourism and nature conservation.

PUMA´s share price was EUR 248.00 at the end of the year, posting an
increase of 7.0% year-on-year, which resulted in market
capitalization of approximately EUR 3.7 billion.

Sales and Earnings Development 4th Quarter 2010

In the fourth quarter 2010 consolidated sales increased by 16.1%
currency- adjusted and 28.2% in Euro terms, reaching EUR 623.4
million and hence record sales in the company history. All regions
contributed positively to this performance. Currency adjusted sales
in EMEA were up 8.8%, Americas sales increased significantly by
27.8% and Asia/Pacific improved by 13.1%. Footwear sales increased
by 15.7% currency-adjusted and Apparel by 16.9%. Sales in
Accessories increased by 15.1%, while first time consolidation
effects had only a minor impact on this category in Q4. The gross
profit margin decreased to 45.4%, down 500 basis points from
last year´s fourth quarter. This decline is partially attributable
to the change in the regional sales mix and traditionally higher
close-out sales as well as an unfavourable hedging position and
higher input costs. Operating expenses increased disproportionately
compared to the growth of sales by 17.6% to EUR 246.9 million. As a
result, the cost ratio significantly improved from 43.2% to 39.6%.
The operating profit (before special items) increased by 2.6%
from EUR 40.0 million to EUR 41.1 million. Including special
items, the operating profit improved significantly from EUR 6.7
million to EUR 27.9 million or from 1.4% to 4.5% as a percentage
of sales. The earnings per share amount to EUR 0.93 in the quarter,
after a loss in the prior year.

Sales and Earnings Development January-December 2010

Global Brand Sales Worldwide brand sales comprised of consolidated
and license sales increased by 3.1% to EUR 2,862.1 million in
financial year 2010 after currency adjustments. In reported terms
(Euro), brand sales were up 9.8% compared to last year.

Consolidated Sales Consolidated sales increased currency-adjusted by
3.6% to EUR 2,706.4 million in financial year 2010. In Euro terms
consolidated sales rose by 10.6% and exceeded the threshold of EUR
2.7 billion for the first time. PUMA´s sales performance has thereby
returned to the long-term growth trend of 16 years that had been
halted in 2009 by the financial crisis. The Footwear segment posted a
sales increase of 1.1% currency-adjusted to EUR 1,424.8 million. This
represented a share in consolidated sales of 52.6% compared to 54.0%
in the previous year. Currency-adjusted sales in the Apparel segment
rose by 3.8% to EUR 941.3 million. The share in consolidated sales
increased to 34.8% from 34.6% last year. Currency-adjusted
Accessories sales grew by 14.9% to EUR 340.3 million, which is mainly
attributable to the expansion of the consolidated group as a result
of the acquisition of Cobra Golf. As a consequence, the share of the
Accessories segment in consolidated sales increased to 12.6% compared
to 11.4% in the previous year.

Gross Profit Margin The gross profit margin declined by 110 basis
points to 49.7% and continues to be among the upper echelons of the
sporting goods industry. The margin drop derives, in particular, from
the change in the regional sales mix, a slight increase in sourcing
costs and unfavourable hedging positions in 2010 compared with 2009.
In absolute figures, however, the gross profit margin increased from
EUR 1,243.1 million to EUR 1,344.8 million or 8.2%. In terms of
product segments, the gross profit margin in Footwear was at 48.9%
compared to 49.8% last year. The Apparel margin decreased from 51.3%
to 50.6% and Accessories decreased from 54.1% to 50.6%, which stems
from the impact of the newly acquired and integrated Cobra Golf
business.

Operating Expenses

Operating expenses before special items rose - disproportionately to
the growth of sales - by 6.4% to EUR 1,026.1 million in 2010. This
increase derives from currency impacts and the extension of the scope
of business after Cobra Golf and the new subsidiary PUMA Spain were
included. As a percentage of sales, PUMA managed to reduce the cost
ratio to 37.9% after 39.4% in the previous year. This is also a
direct result from the cost reduction program of 2009. Marketing and
Retail expenses remained almost unchanged at EUR 501.3 million.
However, the corresponding cost ratio dropped significantly from
20.5% to 18.5% of sales. Owing to the rise in sales revenues and
expansion of the consolidated group, other selling expenses increased
by 12.6% to EUR 348.8 million or from 12.7% to 12.9% as a percentage
of sales. Expenses for product development and design increased from
EUR 58.1 million to EUR 63.6 million or decreased from 2.4% to 2.3%
as a percentage of sales. Other General & Administration expenses
increased by 11.9% to EUR 147.9 million which derives from
acquisitions and currency effects. As a result, the cost ratio
increased slightly from 5.4% to 5.5% of sales. Furthermore, operating
income amounted to EUR 35.5 million after EUR 35.7 million last year.
Depreciation was at EUR 55.2 million. Compared to the previous
year, this corresponds to a decrease of 8.4%, underlining PUMA´s
cautious investment policy.

EBIT before special items

Operating profit before special items increased by 12.7% to EUR
337.8 million compared to EUR 299.7 million last year. As a
percentage of sales, this corresponds to an improved operating
margin of 12.5% versus 12.2% in 2009.

EBIT

The uncovering of irregularities at our joint venture in Greece
resulted in one- off expenses of EUR 31.0 million in financial year
2010. In addition the comparative figures in the consolidated
financial statements as of December 31, 2009 had to be
restated (cf. Section 3 in the Notes to the consolidated financial
statements). As a result, the retained earnings as of December 31,
2009 decreased by EUR 106.5 million. Including the special items, the
operating profit (EBIT) generated in 2010 more than doubled to EUR
306.8 million from EUR 146.4 in the previous year. This
corresponds to an operating margin of 11.3% as a percentage of sales
after 6.0% in 2009. After reviewing and correcting this incident,
Management does not expect further one-off expenses related to this
matter. PUMA has asserted all claims according to criminal law
against the Greek Joint Venture minority partner and members of
the local Greek management. Currently, there is no new information
relating to this matter.

Financial Result

Following PUMA's acquisition of a 20.1% stake in Wilderness
Holdings Ltd., a company dedicated to responsible ecotourism
and nature conservation, the financial statements for 2010 include
a financial result (EUR 1.8 million) from an associated company.
The total financial result amounted to EUR -5.3 million, compared
to EUR -8.0 million in the previous year. The financial result
includes interest income amounting to EUR 4.4 million after EUR 3.8
million last year, as well as interest expenses of EUR 5.9 million
after EUR 6.6 million in 2009. Furthermore, expenses relating to
interest in connection with accumulated, long-term purchase
price liabilities from corporate acquisitions of EUR 4.3
million (previous year: EUR 4.1 million), as well as expenses
of EUR 1.3 million (previous year: EUR 1.1 million) derived
from the valuation of pensions plans.

Earnings before Taxes Compared to the previous year, earnings before
taxes (EBT) rose significantly from EUR 138.4 million to EUR 301.5
million or from 5.7% to 11.1% as a percentage of sales.
This improvement results from the increase in sales, the cost
reductions generated through the restructuring program and lower
one-off expenses. Tax expenses increased from EUR 61.1 million to
EUR 99.3 million. The tax rate in the 2010 financial statements
was 32.9% after 44.1% in 2009. In both years, one-off expenses
that could not be claimed as tax-deductibles led to the high
tax ratio.

Net Earnings Consolidated net earnings increased to EUR 202.2 million
after EUR 79.6 million in 2009. The net rate of return improved
significantly to 7.5% compared to 3.3% in the previous year.
Earnings per share increased from EUR 5.28 to EUR 13.45 while
diluted earnings per share rose from EUR 5.27 to EUR 13.37.

Regional Development

Sales in the EMEA region decreased by 2.5% currency-adjusted to
EUR 1,221.7 million. However, in Euro terms, sales increased by 1.5%
compared to last year. The share of the EMEA region in consolidated
sales amounted to 45.1% compared to 49.2%. In terms of product
segments, currency-adjusted Footwear sales decreased 9.1%. Apparel
sales, however, increased 2.1% currency-adjusted while Accessories
sales rose 9.9%. The gross profit margin stood at 50.6% compared to
52.2% last year. The Americas region posted an increase in
currency-adjusted sales by 20.0% to EUR 855.9 million. The Latin
America region contributed significantly to this performance.
This resulted in an increase in the share in consolidated sales
from 27.2% to 31.6%. Footwear sales were up by 16.8%
currency-adjusted and Apparel sales posted a strong 21.8% increase.
Accessories sales rose by 53.5% which is mainly due to the
acquisition of Cobra Golf. The gross profit margin amounted to
46.6% after 48.2% in 2009. Sales in the Asia/Pacific region decreased
slightly by 2.6% currency-adjusted to EUR 628.8 million. However,
sales increased by 8.8% in reported terms. The share in
consolidated sales remained stable at 23.2% after 23.6% in
2009. Footwear sales decreased by 6.1% currency-adjusted and Apparel
sales by 1.9% while Accessories sales posted a 5.4% increase.
The gross profit margin improved from 50.8% to 52.0%.

Net Assets and Financial Position

Equity

Total assets as of December 31, 2010, increased by 22.9% from EUR
1,925.0 million to EUR 2,366.6 million. This results from an increase
in inventories and trade receivables - both partly currency-related -
and an expansion of the consolidated group. Owing to a significant
rise in total assets, the equity ratio declined slightly from 58.9%
to 58.6%. However, in absolute figures, shareholders' equity
increased by 22.3% to EUR 1,386.4 million, compared to EUR 1,133.3
million. As in previous years, PUMA´s financial resources remain
solid.

Working Capital

Working capital increased by 25.2%, rising from EUR 323.2 million to
EUR 404.5 million. This increase stems from currency-related effects
and the expansion of the consolidated group. As a percentage of
sales, this corresponds to a slight increase from 13.2% to 14.9%. The
rise in working capital is mainly attributable to the increase in
inventories of 27.7% to EUR 439.7 million which is necessary to
accommodate our expected sales growth in 2011 and an increase in
trade receivables of 28.7% to EUR 447.0 million resulting from the
strong increase in sales in Q4 as well as currency impacts.

Cashflow/Capex

The gross cashflow rose by 28.7% to EUR 358.4 million in 2010, which
is due to the increase in earnings before taxes (EBT). The change in
net current assets reflects a net cash outflow of EUR 97.0 million
compared to a net cash inflow of EUR 116.8 million reported in the
previous year. This derives from increases in inventories and trade
receivables. Taxes, interest and other payments remained stable at
EUR 92.0. In summary, cash provided by operating activities stood at
EUR 169.4 million after EUR 303.9 million last year. Net cash used
for investing activities increased from EUR 136.6 million to EUR
152.3 million. This major portion of the increase is
attributable to the payments for acquisitions, which rose by 32.5%
from EUR 81.8 million in the previous year to EUR 108.4 million
and relate mainly to the purchase of Cobra and Wilderness. Also
included are current investments in fixed assets (Capex) which
amount to EUR 55.2 million after EUR 54.5 million. As a result, the
free cashflow declined from EUR 167.3 million to EUR 17.1 million.
Excluding payments made for acquisitions in 2010, the free cashflow
fell from EUR 249.1 million to EUR 125.5 million. As a percentage
of sales, free cashflow (before acquisitions) amounted to 4.6% after
10.2%. Net cash used for financing activities mainly includes
dividend payments of EUR 27.1 million and investments relating to
the purchase of treasury shares of EUR 23.4 million. Cash and cash
equivalents remained almost unchanged at EUR 479.6 million.

Dividend

The Board of Management and the Supervisory Board will propose to
the Annual General Meeting on April 14, 2011, that a dividend of EUR
1.80 per share (the same as in the previous year) to be paid for
the financial year 2010 from the retained earnings of PUMA AG.
The unchanged dividend corresponds to the improvement in the
consolidated result, while taking the restatement of last years
financial results into consideration. The dividend is to be paid out
on the day after the Annual General Meeting when the profit
distribution is authorized.

Share buy back

In 2010, PUMA purchased 102,219 of its own shares and held 101,593
of its own shares at the end of the year resulting in an investment
of EUR 23.4 million.

Other Events

PUMA AG to convert into a Societas Europaea (SE)

In our ad hoc release on October 25, 2010, PUMA AG outlined its
intention to adopt a new legal structure by transforming into a
European Corporation, PUMA SE. As part of the transformation, PUMA
intends to convert its current two-tier board structure with a
management board and a supervisory board to the more flexible
and international structure of a one-tier Board.
Additionally, managing directors will be responsible for the general
management of PUMA SE.

At the upcoming annual general meeting in April 2011, the
shareholders will be asked to vote on the change of PUMA AG´s
corporate structure.

Outlook

In 2010 - especially in the second half - economic conditions
improved compared to 2009. Despite the lack of major sporting
events, we believe that the company should achieve an increase in
sales in the mid to high single-digit percentage range in the next
two years. At last year's investor conference, PUMA presented its
five-year company strategy "Back on the Attack 2011-2015", which
aims at achieving a significant sales increase in particular
within PUMA's core markets, fueled by investments in brand and
product complemented by optimized business processes, especially
in the first couple of years of our expansion strategy. As a
result, the expense ratio is expected to increase compared to the
previous year´s level, while gradually decreasing in the subsequent
years. We expect an improvement in net earnings in the mid
single-digit percentage range for 2011 and 2012 on the basis of
modest increases in procurement prices.

This document contains forward-looking information about the
Company´s financial status and strategic initiatives. Such
information is subject to a certain level of risk and uncertainty
that could cause the Company's actual results to differ
significantly from the information discussed in this document.
The forward-looking information is based on the current
expectations and prognosis of the management team. Therefore,
this document is further subject to the risk that such
expectations or prognosis, or the premise of such underlying
expectations or prognosis, become erroneous. Circumstances that
could alter the Company's actual results and procure such results
to differ significantly from those contained in forward-looking
statements made by or on behalf of the Company include, but are not
limited to those discussed be above.

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PUMA is one of the world´s leading sportlifestyle companies that
designs and develops footwear, apparel and accessories. It is
committed to working in ways that contribute to the world by
supporting Creativity, SAFE Sustainability and Peace, and by
staying true to the principles of being Fair, Honest, Positive
and Creative in decisions made and actions taken. PUMA starts in
Sport and ends in Fashion. Its Sport Performance and Lifestyle
labels include categories such as Football, Running, Motorsports,
Golf and Sailing. Sport Fashion features collaborations with
renowned designer labels such as Alexander McQueen, Yasuhiro
Mihara and Sergio Rossi. The PUMA Group owns the brands PUMA,
Cobra and Tretorn. The company, which was founded in 1948,
distributes its products in ore than 120 countries, employs more
than 9,000 people worldwide and has headquarters in
Herzogenaurach/Germany, Boston, London and Hong Kong. For more
information, please visit www.puma.com

end of announcement euro adhoc
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ots Originaltext: Puma AG Rudolf Dassler Sport
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Kerstin Neuber

Telefon: +49 (0)9132 81-2984

E-Mail: Kerstin.Neuber@puma.com

Branche: Consumer Goods
ISIN: DE0006969603
WKN: 696960
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / regulated dealing