North America A B Comparative Competitive Efforts Industry 1 COMPARATIVE COMPETITIVE EFFORTS Competitive Efforts by Company G E F H North America Company F Year 11 Help Print D INTERNET SEGMENT Retail Price ($ per unit) Search Engine Advertising ($000s) 1,500 Free Shipping No 6,000 Yes 5,000 12,500 No No S/Q Rating (1 to 10 stars) 6.8 5.8 6.0 6.3 7,750 No 7.0 83.00 74.99 88.00 76.00 82.50 66.95 75.00 92.00 90.00 75.00 7,000 No Yes Yes 6,500 4.5 0 7,000 3,500 Yes No 5.9 6.9 6.2 6.4 Year 11 Co. F vs Industry Ind. I J Average Avg. 80.34 5,675 +14.5% Some Below Avg -16.7% 6.2 -27.4% Model Availability 347 249 Brand Advertising ($000s) 297 350 398 101 298 495 300 249 18,500 10,500 16,000 15,000 18,500 14,000 10,000 16,000 13,000 13,000 308 -67.1 % 14,450 -3.1 % Celebrity Appeal 0 0 0 0 0 0 0 0 0 0 0 0.0% Brand Reputation (prior-year image) 70 70 70 70 70 70 70 70 70 70 70 0.0% Online Orders (000s of pairs) 389 407 284 603 569 365 478 439 382 255 417 -12.5% Pairs Sold ($000s of pairs) 389 407 284 603 569 365 478 439 382 255 417 -12.5% Market Share (%) 9.3% 9.8% 6.8% 14.5 % 13.6 % 8.8% 11.5 % 10.5 % 9.2% 6.1% 10.0% -1.3 pts. WHOLESALE SEGMENT Wholesale Price ($ per pair) S/Q Rating (1 to 10 stars) 58.00 52.00 62.00 54.00 59.00 47.50 53.00 60.00 56.00 53.50 55.50 -14.4 % 6.8 Model Availability 347 5.8 249 6.0 297 Brand Advertising ($000s) 18,500 10,500 16,000 Rebate Offer ($ per pair) 5.00 4.00 5.00 6.3 350 15,000 5.00 7.0 4.5 5.9 6.9 6.2 6.4 6.2 -27.4% 398 101 298 495 300 249 308 -67.1 % 5.00 18,500 14,000 5.00 10,000 16,000 13,000 13,000 14,450 -3.1 % 5.00 5.00 9.00 5.00 5.30 -5.7 % Delivery Time (weeks) 2 wks 2 wks 2 wks 2 wks 2 wks 1 wks 3 wks 2 wks 3 wks 3 wks 2.2 wks -54.5% Retailer Support ($ per outlet) 5,000 5,000 4,750 5,000 5,000 6,000 4,000 5,000 5,750 5,500 5,100 +17.6% Retailer Outlets 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 0.0% Celebrity Appeal 0 0 0 0 0 0 0 0 0 0 0 0.0% Brand Reputation (prior-year image) 70 70 70 70 70 70 70 70 70 70 70 0.0% Pairs Demanded (000s of pairs) 2,507 Gained / Lost (due to stockouts) +9 Pairs Sold (000s of pairs) 2,516 Market Share (%) 11.6% 1,707 +6 1,713 7.9% 1,733 2,548 2,653 +6 +9 +9 1,739 2,557 2,662 2,310 8.0% 11.8% 12.3 % 10.7% 2,379 1,717 2,584 2,110 1,753 2,169 +9.7 % -69 +6 1,723 2,593 7.9% 12.0% +9 +8 +6 0 2,118 1,759 9.8% 8.1 % 2,169 10.0% +6.5% +0.6 pts. PRIVATE-LABEL SEGMENT Offer Price (maximum = $45.50) S/Q Rating (minimum = 3.0 stars) 0.00 0.0 Pairs Offered / Available (000s) Pairs Sold (000s) Market Share (%) 0 36.00 32.00 35.00 4.1 4.8 3.6 385 210 389 0 385 210 389 0.0% 17.3 % 9.5% 17.5% 0.00 35.55 0.0 3.2 0.00 40.00 0.0 3.8 0.00 0.00 0.0 0.0 Total Private-Label Pairs (000s) 0 425 0 425 0.0% 19.1 % 0.0% 13.2% 0 293 0 0 Demand 2,220 0 293 0 0 Offered = 1,702 0.0% 0.0 % Sold = 1,702 Price and S/Q Rating INTERNET SEGMENT - NORTH AMERICA High End End Low Models 50 F E I A C J D B G H ABCDEFGH ---------- 500 Models Product Line Breadth Price and S/Q Rating High End WHOLESALE SEGMENT - NORTH AMERICA End Low Models F E A C J 0 D G B H 500 Models Product Line Breadth ABCDEFGH Industry 1 ABCDEFCHES FINANCIAL PERFORMANCE SUMMARY Income Statement Data ($000s) Year 11 Net Sales Revenues Internet Wholesale P-label 139,283 481,316 0 99,094 287,488 47,612 0 0 68,314 340,923 9,312 Cost of Warehouse Marketing Admin Operating Interest Total Pairs Sold Expenses Expenses Expenses Profit Exp (Inc) 620,599 372,037 55,202 101,607 18,552 73,201 436,093 249,500 43,201 92,441 21,149 29,802 83,437 296,080 29,118 408,635 198,429 31,697 96,327 17,652 64,530 165,766 456,730 43,855 673,609 357,123 57,372 128,401 18,548 112,165 157,512 499,566 660,884 352,282 55,033 114,052 17,152 122,365 76,466 293,563 52,397 426,232 220,956 39,771 83,195 16,549 65,761 122,133 348,554 18,386 489,073 283,214 47,965 87,362 16,650 53,882 127,225 477,795 46,885 651,905 344,313 48,219 88,122 19,248 152,003 91,673 312,313 407,275 219,322 36,358 99,744 16,650 35,201 418,549 222,561 37,109 77,332 15,651 65,896 113,090 379,433 24,757 519,285 281,974 45,193 96,858 17,780 77,481 Income Net Taxes Profit 8,708 19,348 45,145 8,708 6,138 14,323 8,708 16,747 39,075 8,708 31,037 72,420 8,708 34,097 79,560 8,708 16,774 39,138 8,708 13,552 31,622 8,708 42,989 100,306 8,708 8,708 8,708 20,579 7,948 18,545 17,156 40,032 ABCDEFGHER I 48,017 Selected Balance Sheet Data Assets ($000s) Liabilities Shareholder Equity Cash On Hand ABCDEFGHER 0 0 21,904 0 14,114 104,714 0 I 0 0 189,795 356,250 143,291 322,594 200,901 268,824 469,725 161,651 382,250 543,901 178,335 371,300 549,635 198,220 296,660 494,880 152,946 273,955 426,901 215,322 362,974 578,296 154,480 275,504 429,984 166,427 277,273 443,700 Current Fixed Total Assets Assets Assets 546,045 465,885 Current Long-Term Total Liabilities Loans Liabilities 98,424 198,553 296,977 51,605 145,800 Beginning Equity 210,000 197,405 210,000 54,346 166,300 220,646 82,204 187,300 269,504 77,631 198,400 276,031 63,318 209,300 210,000 Stock Sale Earnings Ending (Purchase) Retained Equity -6,060 45,145 249,068 66,675 -8,177 268,480 39,075 249,079 210,000 -6,060 70,440 274,397 210,000 -6,060 69,660 273,604 272,618 210,000 -6,060 18,348 222,262 14,073 176,137 318,758 494,895 85,918 81,300 167,218 210,000 28,570 21,122 259,683 274,003 0 274,003 210,000 -6,060 100,306 304,293 97,060 81,300 178,360 210,000 23,080 18,545 251,624 112,368 81,300 193,668 210,000 0 40,032 250,032 99,688 134,955 234,643 210,000 8,803 41,450 260,252 ABCDEFGHI J AB Profitability Measures Gross Operating Net Profit Profit Profit Margin Margin Margin 40.1% 11.8% 7.3% 42.8% 6.8% 3.3% Selected Financial Statistics Dividend Data Credit Rating Measures ($/share) 0.00 1.00 net profit) 0.0% 22,500 156.3% Div. Per Total Div. Payout Interest Debt to Default Risk Share Payment (percent of ($000s) 3.42 0.42 Coverage Assets Risk of Ratio Ratio Ratio Default 8.41 0.54 4.45 Low 2.44 Mediu m Current Ratio 1.93 Days of Inventory Shares of Stock Outstanding (000s of shares) 74 days 19,800 C 51.4% 15.8% 9.6% 0.00 0 0.0% 7.41 0.47 3.80 Mediu m 2.78 3.70 216 days 119 days 22,500 AB 20,000 DEE 47.0% 16.7% 10.8% 0.10 1,980 2.7% 12.88 0.50 6.16 Low 1.97 43 days 19,800 46.7% 18.5% 12.0% 0.50 9,900 12.4% 14.05 0.50 6.48 Low 2.30 43 days 19,800 F 48.2% 15.4% 9.2% 1.05 20,790 53.0% 7.55 0.55 3.75 Mediu 3.13 15 days 19,800 F DEE m G 42.1% 11.0% 6.5% 0.50 10,500 33.1% 6.19 0.39 3.32 Mediu 1.78 92 days 21,000 G m H 47.2% 23.3% 15.4% 0.00 0 0.0% 17.46 0.47 7.93 Low 0.79 102 days I 46.1% 8.6% 4.6% 0.00 0 0.0% 4.04 0.41 2.39 Mediu 1.59 126 days 19,800 H 20,800 I m J 46.8% 15.7% 9.6% 0.00 0 0.0% 7.57 0.44 3.78 Mediu 1.48 146 days 20,000 J m 45.7% 14.9% 9.2% 0.32 6,567 25.8% 8.90 0.47 4.45 2.15 98 days 20,330 Industry 1 SCORING MEASURES Earnings Per Share ($ per share) Earnings Per Share scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected EPS shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date EPS scores are based on a weighted average of the annual EPS performances. Year 11 Y11 (2.50) Y12 (3.00) Y13 Y14 Y15 (3.50) (4.00) (4.50) Y16 (5.25) Y17 Y18 Y19 (6.00) (7.00) (8.50) Y20 (10.00) Wgt. Avg. Y11 Score G-T-D Score (2.50) I.E. B-I-I I.E. B-I-I ABCDEFGHIS 2.28 2.28 18 9 18 9 0.64 0.64 5 3 5 3 1.95 1.95 16 8 16 8 3.66 3.66 24 14 24 14 4.02 4.02 24 16 24 16 1.98 1.98 16 8 16 8 1.51 1.51 12 6 12 6 5.07 5.07 24 20 24 20 0.89 2.00 0.89 7 4 7 4 2.00 16 8 16 8 ABCDEFGHER I J Return On Equity (%) Return On Equity scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected ROE shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date ROE scores are based on a weighted average of the annual ROE performances. Y11 ABCDEFGHER Y12 (21.0) (22.0) (23.0) (24.0) (25.0) 19.7 Y13 Y14 Y15 Y16 Y17 Y18 Y19 (26.0) (27.0) (28.0) (29.0) Y20 (30.0) Wgt. Avg. Y11 Score G-T-D Score (21.0) I.E. B-I-I I.E. B-I-I 19.7 19 10 19 10 A 6.0 6.0 6 3 6 3 B 17.0 17.0 16 9 16 9 29.9 29.9 24 15 24 15 D 32.9 32.9 24 17 24 17 E 18.1 18.1 17 9 17 9 F 13.5 13.5 13 7 13 7 G 39.0 39.0 24 20 24 20 H 8.0 17.4 8.0 8 4 8 4 I 17.4 17 9 17 9 J Stock Price ($ per share) Stock Price scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected stock price shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date scores are based solely on the most recent year's stock price. Y14 Y15 Y16 Y17 Y18 Y19 (80.00) (100.00) (125.00) (150.00) (180.00) (215.00) Y20 (250.00) Y11 Y12 Y13 (40.00) (50.00) (65.00) 31.19 11.95 11.87 88.80 102.00 ABCDEFGHIS 17.65 12.67 138.46 12.53 13.61 Y11 Score I.E. B-I-I G-T-D Score I.E. B-I-I 16 5 16 5 6 2 6 2 6 2 6 2 24 13 24 13 24 15 24 15 9 3 9 3 6 2 6 2 24 20 24 20 6 2 6 2 7 2 7 2 ABCDEFGHIR