Industry: 18 Variance VS. Y13 Var. VS Y11 Y12 Y13 Y13 Company: 0 /12 Industry Projection Y13 Proj. Y13 Actual Actual Actual VP Production: +/- 96 +/-91 Average +/- 96 PRODUCTION BENCHMARKS: North America Total Regular Compensation $ 40,818 40,844 37,467 24656 89% 52% 37,871 Workforce Productivity S 5,122 5,015 4,931 4937 -296 0% 5,233 69% Production Labour Cost (S per pair] 3.4 8.67 7.99 8.19 8% 29% 7.63 596 Supervisory Compensation S 50,000 50,600 61,206 1206 19% 09% 51,820 Branded TOM/6-Sigma (S per pair) 3 3 2.1 2.27 -30% 79% 2.72 239 Total Production Costs ($ per pair) 26.75 32.09 29.14 29.82 99% 30.2 Branded Reject Rate 9% 2.80% 7.10% 7.40%% 7.40%% 496 096 5.90% Cost Per S/Q Star - Branded 4.25 4.94 5.5 5.5 1 1% 0% 5 106 Europe Africa Total Regular Compensation S 0% 096 0% Workforce Productivity $ 0% 096 0% Production Labour Cost ($ per pair] 09% 09% 0 Supervisory Compensation $ 0% 09% 0 0% Branded TOM/6-Sigma (S per pair) 0 0 0% 0% 0 0% Total Production Costs ($ per pair) 0 0 0% 09% 0 0% Branded Reject Rate 9% 0 0 09% 0% 0 0% Cost Per S/Q Star - Branded 09% D9% 0% Asia Pacific Total Regular Compensation 5 15,440 19,099 19,099 14649 0% 30% 14,048 36% Workforce Productivity $ 3,726 3,643 3.643 3647 0% 096 3.651 0% Production Labour Cost (S per pair 4.34 4.59 4.69 4.69 09% 09% 4.03 16% Supervisory Compensation 25,000 842 842 25503 0% 97% 25,791 97% Branded TOM/6-Sigma (5 per pair) 3 2.31 2.31 2.31 09% 096 3.0 24% Total Production Costs ($ per pair) 21.75 23.26 23.26 23.46 0% 1% 23.67 .29% Branded Reject Rate 9% 9.10% 9.10% 9.10% 3.10% 0% 0% 7.10%% 2896 Cost Per S/Q Star - Branded 3.63 4.35 4.56 4.56 5% 0% 3.91 179 Latin America Total Regular Compensation S 7 262 7522 0% 13,722 479% Workforce Productivity S 0 0 4,070 3913 09% 496 3,909 49% Production Labour Cost (S per pair] 0 4.3 4.46 0% 3.67 179 Supervisory Compensation $ 0 0 306 25503 09% 99% 25,631 Branded TOM/6-Sigma (S per pair) 0 1.3 2.3 0% 096 2.8 169 Total Production Costs ($ per pair) 0 0 28.5 28.89 0% 1% 27.56 Branded Reject Rate 9% 0 0 11.60% 11.60% 0% 096 7.30% 599 Cost Per S/Q Star - Branded 5.94 5.94 0% 0% 4.47CORPORATE OPERATING REPORT: Y11 Y12 Y13 Y13 Variance VS. Actual Actual Actual Projection Y12 Y13 Proj. +/-9% +/-9% COMPANY TOTAL (All Facilities) Production Statistics: Net Footwear Production 10201 10201 10201 10,201 0% Reject Rate % (Branded) 9.1 9.1 9.1 9.1 096 Cost of Rejected Pairs S 24165 24165 24165 24380 096 .196 Cost of Rejected Pairs ($/Pair) 2.38 2.38 2.38 2.4 196 196 Workforce Statistics: Base Wages 5 44828 44828 44828 45014 196 Incentive Pay S 4548 4548 1548 4549 096 096 Fringe Benefits $ 1676 1676 1676 1689 0% -19% Total Regular Compensation $ 51052 51052 51052 51252 09% 096 Overtime Pay $ 11384 11384 11384 12783 096 1196 Total Compensation $ 62436 52436 62436 54035 09% .29% Branded Production Costs: Materials Costs (5/Pair) 9.74 9.74 9.74 9.97 09% .296 Production Labour (S/Pair) 5.64 5.64 5.64 5.67 D6 -196 Best Practices Training (S/Pair) 0.22 0.22 D.22 0.22 0% D96 Supervisory Costs (S/Pair] 0.2 0.2 0.2 0.2 09% 096 Enhanced Styling / Features (S/Pair) 1.06 1.06 1.06 TOM/6-Sigma Program ($/Pair) 2.31 2.31 2.31 2.31 09% 196 Production Run Setup ($/Pair) 3.75 3.75 3.75 3.75 096 096 Facilities Maintenance (S/Pair] 0.83 D.83 0.83 0.82 09% 19% Depreciation Expense (S/Pair] 2.28 2.28 2.28 2.26 196 Total Production Costs (S/Pair) 26.03 26.03 26.03 26.25 096 19% Warehouse Operations: Days of Inventory (FIR) 98 142 120 42 -15% 186% Pairs Available for Sale # 10201 10201 10201 10201 0% 096 Total Branded Sales # 7679 7679 7679 9159 096 -169% Inventory Surplus (Shortfall) # 1709 1709 1709 71 D% 2307% Cost of Branded Pairs Sold (S/pair) 29.75 29.75 29.75 29.94 096 .19% Total Warehouse Op. Expenses ($/F 5.65 5.65 5.65 5.56Industry: 18 Variance VS. Y11 Y12 Var. VS Y13 Y13 Company: D Y13 Actual Actual Actual Projection Y12 Y13 Proj. Industry Y13 VP LA: +/- 96 +/-% Average +/- 6 Internet - Comparative Competitive Efforts: Retail Price 78.99 80 88 88 10% 09% 89.25 -1% 5/Q Rating 5.2 4.9 4.9 -219% 096 6.2 21% Search Engine Advertising 3750 4750 1750 1750 0% 096 5375 12% Pairs Sold 177 302 246 330 19% 25% 375 34% Market Share 1.1 11.4 8.2 10.7 .2896 23%% 12.5 34%% Operating Profit Margin (96) 11 23.5 5.5 25.7 77% -799% 21.3 -74% Wholesale - Comparative Competitive Efforts: Wholesale Price 57 56 55 55 .296 1096 61.34 10% 5/Q Rating 5.2 49 6.3 219% 229% 5.2 -21% Model Availability 150 492 450 371 9% 1% 106 1 1% Brand Advertising 7000 8000 15000 12958 169% 16750 -10% Rebate Offer 6 5 5 096 4.8 196 Retailer Support 6500 5500 5000 5000 9% 0% 396 26% Retail Outlets 1346 2096 2096 5696 09% 1667 269% Celebrity Appea 0% 0% 100 -100% Brand Reputation 70 73 73 0% D96 75 3% Pairs Sold 126 1716 1767 2094 396 16% 171 396 Market Share 10.9 13.6 12.9 15.2 -59% 15% 12.5 3% Operating Profit Margin (96] 8.9 15.3 0.1 1.8 99% 8.6 Private Label - Comparative Competitive Efforts: Offer Price 36.5 39.5 39.5 38.06 4% 5/Q Rating 4.6 5 09% 0% 5.44 Pairs Sold 294 O 0 0% 0% 288 -100% Market Share 16.3 09% 12.51 -100% Note: +/- 5% variance must be presented in BOLD "RED NEGATIVE" or "BLACK POSITIVE" type Y11 Y12 Y13 Variance vs CORPORATE OPERATING REPORT Y13 Actual Actual Actual Y12 Projection Y13 Proj. +/-9% +/-6 Net Sales Revenue (S): Internet 24558 24558 24558 32944 D6 -25% Wholesale 96446 96446 36446 114295 0% -16% Private Labe O 0 096 Tota 121004 121004 121004 147239 096 -18% Operating Expenses: Cost of Pairs Sold 62350 62350 52350 75925 0% 18% Warehouse Expenses 11295 11295 11295 13326 096 -15% Marketing Expenses 37240 37240 37240 38139 0% -29% Administrative Expenses 5822 5827 5827 5880 0% 1% Total 116707 116707 116707 133270 D% -12% Operating Profit ($) 4297 4297 4297 13969 69% Operating Profit Margin( 96) 3.55 3.55 3.55 9.49 0% 63%