3/8/2019 BSG Decisions & Reports

Projected Year 11 Performance 

Investor Change
Scoring Measures Year 11 Expectation Other Measures Year 11 from Y10
EPS (earnings per share) $2.22 $2.50 Net Revenues ($000s) 515,891 +19.2%
ROE (return on equity) 19.6% 21.0%
Net Profit ($000s) 44,225 +10.6%
Credit Rating A– B+
Image Rating 83 70 Ending Cash ($000s) 4,901 -1,173

North America Europe-Africa Asia-Pacific Latin America

P P -L P Facility Facility Facility Facility
Private-Label Materials Standard Materials % 62 % 0% 50 % 0%
Specifications Superior materials % 38 % 0 % 50 % 0 %

Number of Models / Styles (global requirement) 100 models 0 models 100 models 0 models
Enhanced Styling / Features ($000s per model) $ 14 k/model $ 0 k/model $ 16 k/model $ 0 k/model

S/Q Rating of Private-Label Pairs to be Produced Global Minimum = 3.0★ 6.1★ 0.0★ 6.1★ 0.0★

Capacity Available for Private-Label Prodiction (000s of pairs) 1,067 pairs 0 pairs 851 pairs 0 pairs

Private-Label Pairs North America Warehouse 215 0 0 0

to be Produced Europe-Africa Warehouse 215 0 0 0
and Shipped to Asia-Pacific Warehouse 0 0 222 0
(before rejects)
Latin America Warehouse 0 0 222 0
Proposed Total Production Regular Time 217 pairs 0 pairs 1 pairs 0 pairs
of Private-Label Pairs Overtime 213 0 443 0
(000s of pairs)
Pairs Rejected 26 (1.5%) 0 (0.0%) 37 (3.9%) 0 (0.0%)
Net Private-Label Production 404 pairs 0 pairs 407 pairs 0 pairs
Projected Cost of Private-Label Pairs to be Produced ($ per pair) $33.65 per pair $0.00 per pair $30.72 per pair $0.00 per pair

North America Europe-Africa Asia-Pacific Latin America

P -L C O Market Market Market Market
(projected total regional demand assuming nor-
Private-Label Demand mal competitive conditions – see page 4 of FIR) 2,664 pairs 2,664 pairs 2,712 pairs 2,712 pairs

Pairs Offered for Sale (to be produced and shipped if offer is accepted) 212 pairs 212 pairs 213 pairs 213 pairs

Price Offer (must be at least $10.00 below the Y11 regional average whsle. price) $ 45.00 $ 50.00 $ 45.00 $ 50.00
Projected Private-Label Market Share (if offer is accepted) 8.0% 8.0% 7.9% 7.9%
$000s $/pair $000s $/pair $000s $/pair $000s $/pair
Revenue, Cost, and Gross Private-Label Revenues 9,540 45.00 10,600 50.00 9,585 45.00 10,650 50.00
Margin Projections ± Exchange Rate Adjustments 0 0.00 0 0.00 0 0.00 0 0.00
for Year 11 Net Private-Label Revenues 9,540 45.00 10,600 50.00 9,585 45.00 10,650 50.00
Production Cost 7,134 33.65 7,134 33.65 6,543 30.72 6,543 30.72
± Exchange Rate Adjustments 0 0.00 0 0.00 0 0.00 0 0.00
Freight / Packaging / Tariffs 424 2.00 1,908 9.00 426 2.00 2,769 13.00
Margin Over Direct Costs 1,982 9.35 1,558 7.35 2,616 12.28 1,338 6.28
The projected outcome of winning a Private-Label contract may Incorporate the pro- Incorporate the pro- Incorporate the pro- Incorporate the pro-
be included in the overall performance projections for the cur- jected olutcomes for jected olutcomes for jected olutcomes for jected olutcomes for
rent year. Select "Yes" for a region only if there is a reasonable this region into Y11 this region into Y11 this region into Y11 this region into Y11
probability of winning a Private-Label contract in the region. projections? Yes projections? Yes projections? Yes projections? Yes

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