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Projected Year 11 Performance

Investor Change
Scoring Measures Year 11 Expect. Other Measures Year 11 from Y10
Earnings Per Share $4.29 $2.67 Net Revenues ($000s) $315,779 +32.0%
Return On Equity 27.0% 15.0% Net Profit ($000s) $55,784 +100.0%
Credit Rating A+ B+ Ending Cash ($000s) $8,451 +3,451
Image Rating 79 70

North America Europe-Africa Asia-Pacific Latin America

Wholesale Marketing of Branded Footwear Market Market Market Market
Year 10 Year 11 Year 10 Year 11 Year 10 Year 11 Year 10 Year 11
S/Q Rating (weighted average S/Q rating of branded pairs available for sale) 5 5 5 5 5 5 5 5
Model Availability (weighted average number of branded models available) 200 200 200 200 200 200 200 200
Celebrity Appeal (sum of consumer appeal for celebrities under contract) 0 0 0 0 0 0 0 0

Year 10 Year 11 Year 10 Year 11 Year 10 Year 11 Year 10 Year 11

Wholesale Wholesale Price to Retailers ($ per pair) 48.00 51.00 48.00 51.00 41.00 45.00 42.00 46.00
Marketing
Decisions Advertising Budget ($000s) 7,000 7500 7,000 7500 3,500 4000 3,500 4000
Mail-In Rebate Oer ($0 to $10 per pair) 3 3 3 3 2 2 2 2
Retail Outlets Available (willing to carry your footwear) 3,000 3,000 3,000 3,000 1,500 1,500 1,500 1,500
Retail Outlets Utilized (total number) 3,000 3000 3,000 3000 1,500 1500 1,500 1500
Retailer Support ($100-$2500 per outlet utilized) 400 400 400 400 400 400 400 400
Delivery to Retailers (4, 3, 2, or 1 week) 3 3 3 3 3 3 3 3

Year 10 Year 11 Year 10 Year 11 Year 10 Year 11 Year 10 Year 11

Wholesale Market Share (Year 10 actual and Year 11 projection) 14.3% 13.6% 14.3% 13.6% 14.3% 13.2% 14.3% 13.2%
Branded Pairs Available to Fill Wholesale Orders (000s) 1,321 1,336 1,321 1,339 881 898 881 901
Anticipated Wholesale Demand (000s of pairs desired by retailers) 1,282 1,277 1,282 1,277 855 859 855 859
Inventory Requirement (000s of pairs needed to achieve delivery time) 39 39 39 39 26 26 26 26
Inventory Surplus/Shortfall at Year-End (000s of pairs) 0 +20 0 +23 0 +13 0 +16

Allocation of Expenses to each Revenue-Cost-Profit Projections $000s $/pair $000s $/pair $000s $/pair $000s $/pair
Wholesale Market Segment
Gross Wholesale Revenues 65,127 51.00 65,127 51.00 38,655 45.00 39,514 46.00
Manufacturing costs, warehouse 0 0.00 0 0.00 0 0.00 0 0.00
leasing and inventory storage Exchange Rate Adjustment
expenses, advertising expenses, Net wholesale Revenues 65,127 51.00 65,127 51.00 38,655 45.00 39,514 46.00
expenditures for celebrity endorse-
ment contracts, and administrative Cost of Branded Pairs Sold 32,443 25.41 32,465 25.42 18,020 20.98 23,165 26.97
expenses are allocated to a geo- Warehouse Expenses 3,316 2.60 3,316 2.60 2,608 3.04 2,608 3.04
graphic region based on wholesale Marketing Expenses 9,730 7.62 9,730 7.62 5,101 5.94 5,101 5.94
sales as a percentage of total Administrative Expenses 2,343 1.83 2,343 1.83 1,577 1.84 1,577 1.84
branded pairs sold in the region.
Operating Profit (Loss) 17,295 13.54 17,273 13.53 11,349 13.21 7,063 8.22
Operating = prot before interest
Prot expenses, extraordi-
nary items, and income Operating Profit Margin 26.6% 26.5% 29.4% 17.9%
tax payments.

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