$000s 0 0 0 0.00 Incoming Shipments from (see Note 1 below) North America Facility Europe-Africa Facility Asia-Pacific Facility Latin America Facility Pairs Available for Sale in Year 19 (see Note 2 below) Projected Demand (given branded marketing decision entries) Required Inventory (needed to achieve delivery time) Projected Inventory Surplus (Shortfall) Projected Distribution and Warehouse Costs Exchange Rate Cost Adjustment (on incoming shipments) Distribution and -Freight on Footwear Shipments Warehouse Costs Tariffs on Pairs Imported Inventory Storage (on Y18 inventory) Packaging/Shipping (Net+ wholesale) Warehouse Lease / Maintenance Total Dist. and Whse. Costs 2,151 Pairs Models S/Q 207 486 2.8 1,497 500 3.1 2 500 4.5 2 450 4.1 200 400 3.0 1,908 488 3.1 BRANDED DISTRIBUTION Pairs Available for Shipment (000s of pairs produced at each facility after rejects) Pairs to be Shipped from Facility to (000s of pairs) - North America Warehouse Europe-Africa Warehouse Asia-Pacific Warehouse Latin America Warehouse Remaining Pairs to be Shipped (if left unshipped, will be shipped automatically) WAREHOUSE OPERATIONS Inventory Left Over at the End of Year 18 (000s) Inventory Clearance (prior to Year 19 operations) Clearance Statistics - Discounted Clearance Revenues Direct Cost of Pairs Cleared Margin Over Direct Cost Beginning Inventory (000s of pairs carried over from Year 18) North America Europe-Africa Facility Facility 3,036 pairs 1,290 pairs 1497 2 915 776 625 102 2 413 North America Warehouse Pairs Models S/Q 207 486 2.8 0 % O pairs -3 pairs -3 pairs Europe-Africa Warehouse Pairs Models S/Q 763 458 3.1 0- % O pairs Asia-Pacific Facility 768 pairs Latin America Facility 1,299 pairs 200 22 2 2 664 100 0 pairs Asia-Pacific Warehouse Pairs Models S/Q 173 469 3.3 0-> % O pairs 1000 93 0 6 pairs Latin America Warehouse Pairs Models S/Q 468 413 2.9 0- % O pairs Pairs Models S/Q 468 413 2.9 $/pair $000s $/pair $000s 0.00 0 0.00 0 $/pair 0.00 $000s $/pair 0 0.00 0.00 0 0.00 0 0.00 223 (2-week delivery) -466 (minimal) Pairs Models S/Q 763 458 3.1 915 500 3.1 776 500 4.5 2 450 4.1 1,000 400 3.0 3,456 462 3.4 2,586 274 (2-week delivery) +596 (minimal) 0 0.00 0 0.00 Pairs Models S/Q 173 469 3.3 625 500 3.1 102 500 4.5 664 450 4.1 93 400 3.0 1,657 471 3.6 1,634 0 0.00 0 0.00 2 500 3.1 413 500 4.5 100 450 4.1 0 0 0.0 983 454 3.7 1,569 137 (3-week delivery) -114 (minimal) 82 (3-week delivery) -668 (minimal) $000s $/pair $000s $/pair $000s $/pair $000s $/pair -1,140 -0.60 1,997 -4,352 -1.26 -577 -0.35 3,201 3.26 1.05 4,808 1.39 2,402 1.45 1,069 1.09 614 0.32 9,512 2.75 3,905 2.36 4,623 4.71 104 0.05 541 0.16 104 0.06 350 0.36 11,037 5.78 1,000 0.52 14,752 7.73 16,505 4.77 8,892 5.37 7,494 7.63 1,000 0.29 1,000 0.60 1,000 1.02 32,366 9.36 16,303 9.84 14,536 14.80 CELEBRITY ENDORSEMENT CONTRACTS Celebrity Appeal Indexes N.A. E-A A-P L.A. Currently Signed By Contract Terminate Amount Contract Contract ($000s/yr.) Early Length Available Contract for Offer Offer ($000s/yr.) Offer Priority Judy Judge Kimmie Jimmel Bud Birkenstock 85 65 60 40 100 70 65 70 100 70 B FJC Corp. 7,001 2 years NOW $ 0 75 B FJC Corp. 15,501 2 years NOW $ 0 55 C GNS LLC 11,500 2 years NOW $ Jose Montana Samuelle Jackson Bronko Mars 60 50 60 95 C GNS LLC 12,000 2 years NOW $ 0 50 95 85 100 60 45 100 65 Apollo 15,000 3 years Year 20 Apollo 15,000 3 years Year 20 Spending Cap on Year 19 Contracts ($000s) $ 0 $0 Sum of Year 19 contract offers. Most Recent Contract Offers (letter in parentheses indicated company that made the offer) When the total annual cost of the company's winning Year 19 contract offers reaches this dollar amount, all remaining lower-priority offers will be withdrawn. No. of Highest Celebrity Offers Offer 2nd Highest 3rd Highest Judy Judge 3 7,001 (B) 5,000 (D) Kimmie Jimmel 15,501 (B) Bud Birkenstock 15,501 (B) 15,000 (A) 11,500 (C) 500 (C) 15,000 (C) 0 12,000 (C) 15,000 (A) 15,000 (A) 9,001 (B) 12,000 (C) 9,001 (B) Jose Montana Samuelle Jackson Bronko Mars 32243 9,001 (B) 7,500 (C) Enter all contract offers in thousands of dollars per year. For example, enter an offer of $2.5 million as 2500. The minimum annual contract offer is $500k (entered as 500). A contract offer entry of $0 for a given celebrity indicates that the celebrity will receive no offer. The maximum annual contract offer is $30 million (entered as 30000). In a given year, offers may be made to as many celebrities as are available, however a company will be awarded no more than 3 celebrity contracts in the same year. When making offers to multiple celebrities in the same year, it is recom- mended that you prioritize the offers and set a spending cap for the year (to guard against winning more contracts than intended). In a given region, the maximum affective celebrity appeal total is 300. When the sum of the appeal indexes in a given region reaches 300, no additional market impact is gained by signing more celebrities. BRANDED FOOTWEAR PRODUCTION Branded Production Specs Materials (see anticipated materials prices at bottom of page) Superior Materials % Number of Models/Styles (50 to 500 models) Enhanced Styling / Features (5000s per model) TQM/6-Sigma Quality Program ($/pr. produced) North America Facility Europe-Africa Facility Asia-Pacific Facility Latin America Facility Standard Materials % 44% 42% 40% 56-> % 58 % 60-% 60% 40-% 500 500- 450- 400- $ 0 k/model $ 0 - k/model $ 0 - k/model $ 0 - k/model 0.30 per pair $0.60 per pair 0.10 per pair $1.00 per pair 3.1 4.5 4.1 3.0 14.0% 3,000 pairs 3,600 pairs 14.7% 13.4% 6,000 pairs 2,000 pairs 7,200 pairs 2,400 pairs Projected S/Q Rating (the style/quality rating ranges from 0.5 to 10.0 stars) Projected Reject Rate (percentage of pairs that will fail inspection) Maximum Y19 Production Capability - Without Overtime (assuming all unused facility space is filled at the beginning of the year with production equipment) Maximum Overtime Total Branded Production Needed in Year 19 (to satisfy projected demand in all four regions) 7,900 pairs (before rejects) 8.0% 8,000 pairs 9,600 pairs This figure is an approximation given beginning inventories, projected reject rates, and entries that currently reside on the Internet and Wholesale Marketing decision pages. The company must schedule production of about this many pairs to satisfy projected demand and inventory requirements. Note: To install production equipment at the beginning of the current year in a facility that currently has unused space, go to the Production Facilities decision entry page (the next item in the decision entries menu). Year 19 Production -Regular-Time 2,750 pairs 1,250 pairs Capability (000s of pairs Overtime (20% maximum) 550 250 750 pairs 150 before rejects) Total Production Capability 3,300 pairs 1,500 pairs 900 pairs Branded Pairs to be Manufactured in Y19 (000s) Total = 7,200 3300 pairs 1500 pairs 900 pairs 1,250 pairs 250 1,500 pairs 1500 pairs Branded Footwear Production (000s of pairs) Regular-Time Production Overtime Production Rejected Pairs (and reject rate) Net Branded Production 2,750 pairs 550 1,250 pairs 250 750 pairs 150 1,250 pairs 250 264 (8.0%) 3,036 pairs Production Capability Remaining for Private-Label Operations Cost of Rejected Pairs (in $000s and $ per pair produced) Costs Associated with the Production of Branded Footwear Materials Cost Labor Cost (including supervisory costs) Enhanced Styling/Features TQM / 6-Sigma Quality Program Production Run Set-Up Maintenance (of facilities and equipment) Depreciation (of facilities and equipment) Total Branded Production Cost Anticipated Y19 Materials Prices Standard Materials $6.45 0 pairs $7,711 $2.54 210 (14.0%) 1,290 pairs 0 pairs $6,244 $4.84 132 (14.7%) 201 (13.4%) 768 pairs 1,299 pairs 0 pairs 0 pairs $4,393 $5.72 $5,287 $4.07 $000s $/pair $000s $/pair $000s $/pair $000s $/pair 39,202 12.91 34,760 11.45 0 0.00 990 0.33 7,500 2.47 5,461 1.80 8,560 2.82 96,473 31.78 18,263 14.16 11,047 14.38 15,699 12.09 12,100 9.38 4,760 6.20 7,370 5.67 0 0.00 0 0.00 0 0.00 900 0.70 90 0.12 1,500 1.15 7,500 5.81 6,375 8.30 10,750 8.28 1,618 4,244 3.29 44,625 34.59 1.25 3,098 4.03 1,262 0.97 4,557 5.93 2,904 2.24 29,927 38.97 39,485 30.40 per pair Superior Materials $16.49 per pair Beginning figures represent actual materials prices from the prior year. WORKFORCE COMPENSATION & TRAINING Prior-Year Compensation and Productivity Data Workforce Compensation (total $ per year) Base Wages Incentive Pay North America Facility Europe-Africa Facility Asia-Pacific Facility Fringe Benefits 2,197 1,250 Total Regular Compensation Overtime Pay (included incentives) Total Compensation Industry Company Average D 36,452 36,452 943 1,000 39,899 38,395 10,476 11,131 50,375 49,526 Industry Company Average D 21,981 21,871 1,313 3,123 563 1,000 23,857 25,994 5,290 7,180 29,147 33,174 Industry Company Average D 13,194 12,865 Latin America Facility Industry Company Average D 1,550 688 1,403 750 13,160 1,643 12,865 1,484 625 5.5% 4,567 Minimum Wage = 36,817 0%- 36,817 0.25 1000 Incentive Pay as a % of Regular Compensation Workforce Productivity (pairs per worker per year) Compensation-Base Wage (% change from prior year) and Training of Production Workers Incentive Pay ($ per non-rejected pair) Fringe Benefits ($ per year) Total Regular Compensation ($ per year) Overtime Pay (includes incentives) Total Compensation ($ per year) Incentive Pay as % of Regular Comp. Best Practices Training ($ per worker) Materials Cost Impact from cumulative expenditures) Supervisory Staff (ratio of production workers to supervisors) Prior-Year Supervisory Compensation (S/year/supervisor) Supervisory Compensation (% change in salary, benefits, and bonus) Projected Workforce Productivity (pairs per worker in Y19) Number of Workers Employed (given branded production entries) 600 per worker Std -0.10 Sup -0.26 40to1 Staff = 17 Ind. Avg. Co. D 64,540 64,328 Minimum Salary = 64,971 0% - 64,971 4,133 665 40 to1 Staff=9 Ind. Avg. Co. D 39,277 38,597 Minimum Salary = 38,983 0% - 38,983 30 to1 Staff=8 Ind. Avg. Co. D 27,348 26,804 Minimum Salary = 27,072 0% - 27,072 3,292 228 $400 Std 0.00 9.8% per worker Sup 0.00 50 to1 Staff=7 Ind. Avg. Co. D 27,345 26,804 Minimum Salary = 27,072 0% 27,072 3,457 2.5% 4,096 5.5% 12.0% 3,761 3,627 15,432 3,836 19,268 19,158 10.0% 9.3% 3,722 3,289 15,018 4,140 15,428 750 15,099 3,240 4,152 18,668 19,251 10.6% 9.8% 3,872 3,448 Minimum Wage = 22,090 0%- 22,090 Minimum Wage = 12,994 Minimum Wage = 12,994 0% - 12,994 0%- 12,994 951 1,000 $1.00 - 1000 3,116 0.50 - 1,403 0.50 - 1,495 1,000 750 750 750-> 750 38,768 26,206 15,147 15,239 11,242 7,249 4,175 4,193 50,010 33,455 19,322 19,432 2.5% 11.9% 9.3% 600 Std -0.05 Sup -0.13 per worker 600- Std -0.10 per worker Sup -0.26 Cost of Labor Associated with Footwear Production Per-pair figures not adjusted for rejected pairs. 3,624 345 362 Production Workers Base Wages Incentive Pay Fringe Benefits $000s $/pair 24,483 7.42 $000s $/pair $000s $/pair $000s $/pair 7,621 5.08 2,963 3.29 4,704 3.14 632 0.19 1,075 0.72 320 0.36 541 0.36 665 0.20 345 0.23 171 0.19 272 0.18 Overtime Pay 7,476 2.27 2,501 1.67 952 1.06 1,518 1.01 Total Best Practices Training Expenditures Supervisory Compensation (salary + benefits) 33,256 10.08 11,542 7.69 4,406 4.90 7,035 4.69 399 0.12 207 0.14 137 0.15 145 0.10 1,105 0.33 351 0.23 217 0.24 190 0.13