1 PUMAS PRODUCT LEVEL ENVIRONMENTAL PROFIT & LOSS ACCOUNT (EP&L) AND INCYCLE COLLECTION Innovation Case Study by Stefan Seidel, Team Head PUMA.Safe Ecology,

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PUMAS PRODUCT LEVEL ENVIRONMENTAL PROFIT & LOSS ACCOUNT (EP&L) AND INCYCLE COLLECTION

Innovation Case Study by Stefan Seidel, Team Head PUMA.Safe Ecology, PUMA

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MissionThis is what drives us

We want to be the most desirable and sustainable Sportlifestyle Company.

We are committed to working in ways that contribute to a better world by supporting creativity, sustainability and

peace and by staying true to the values of being fair, honest, positive and creative in decisions made and

actions taken.

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Sustainability scorecardOur goals for 2015

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Corporate SustainabilityEnvironmental Profit & Loss Account (E P&L)

• What would it cost, if nature sent us a bill?

• As the first company worldwide, PUMA has completed and published an economic valuation of the environmental impacts along its entire value chain.

• First step to reduce your environmental impact is to know your impact.

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Manufacturing: Apparel, shoes and accessories

Tier 1

Tier 3

Tier 4

Tier 2

Outsourcing: Embroiderers, printers, outsole producers

Processing: Tanneries, chemical companies, oil refiners

Raw materials: Cotton farming, cattle ranching, oil drilling

Operations

Operations: Offices, shops, business travel, warehouses, logistics

E P&LWhich impacts along the value chain are covered?

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PUMA EP&L Results 2011 Impact vs. influence

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GUCCI · BOTTEGA VENETA · SAINT LAURENT · ALEXANDER McQUEEN

BALENCIAGA · BRIONI · STELLA McCARTNEY · SERGIO ROSSI · BOUCHERON

GIRARD-PERREGAUX · JEANRICHARD · QEELIN · CHRISTOPHER KANE

PUMA · VOLCOM · COBRA · ELECTRIC · TRETORN

Group-wide E P&L roll-out by 2016Across all Kering brands

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Incycle productsFully recyclable or biodegradable product series launched in 2013

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Incycle productsCradle to Cradle philosophy

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Incycle productsCradle to Cradle philosophy

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Incycle products

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Incycle products

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ARE INCYCLE-PRODUCTS REALLY

MORE SUSTAINABLE?

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The Product level E P&L extends our unique E P&L analysis to the product level further highlighting the extent of PUMAs impact on ecosystem services and its associated drivers.

Comparative analysis of four footwear and apparel products including InCycle collection

Analysis highlights PUMAs “more sustainable” products create up to 30% less environmental impact than

conventional products

Comparative product E P&L analysisFull impact quantified & broken down on individual products

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PRIMARY DATA

TIER 1

OPERATIONS

TIER 2

TIER 3

TIER 4

TRUCOSTMODEL

PRIMARY + SECONDARY

DATA

AVAILABLEGERMANLCA DATACONSUMER

DISPOSAL

Product view including „end of life“ impactData across full lifecycle

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INCYCLE SHOE: 35% GHG SAVINGS

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-31%

Conventional product vs. InCycle productInCycle: 31% impact reduction

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Moving sustainability to the next level

Compliance audits Sustainable compliance

Products without hazardous substances

More sustainable products

E-KPI monitoring

Sustainability management and full transparency in the

supply chain

Additional costVisible added value for the consumer and our

stakeholders

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“The business of business is business?”

But “Business as usual”

is no longer an option!

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THANK YOU!