Options for Equipment for Footwear are: 250, 500, 750, 1000

Options for Space for Production are: 1k, 2k, 3k, 4k, 5k

Projected Year 11 Performance i Investor Scoring Measures Year 11 Expectation Other Measures EPS (eamings per share) $2.28 $2.50 Net Revenues 50008) ROE (return on equity) 19.6% 21.0% Net Profit ($000s) Credit Rating - B+ Image Rating 64 70 Ending Cash (8000) Change Year 11 from Y10 448,270 +3.6% 45,682 +14.2% 53,933 +47,859 Europe-Africa Facility Latin America Facility O pairs O pairs O pairs EQUIPMENT FOR FOOTWEAR PRODUCTION Space Available for Footwear Production Equipment in Y11 Production Equipment in Place at Beginning of Y11 (000s of pairs) Purchase of Production - New (000s of pairs) Equipment Refurbished (000s of pairs) Sale of Existing Equipment (oldest equipment will be sold first) Total Footwear Production Capability in Y11 (000s of pairs without OT) Percentage of New / Refurbished Production Equipment North America Facility 5,000 pairs 4,000 pairs 0 pairs 10 pairs 0 pairs 4,000 pairs 100% 0% Asia-Pacific Facility 6,000 pairs 4,000 pairs pairs ( 0 pairs 0 pairs 4,000 pairs 0% 100% O pairs O pairs 0 pairs O pairs O pairs 0% 0% 0 0 pairs 0 pairs Co pairs O pairs 0% 0% Latin America Facility PRODUCTION IMPROVEMENT OPTIONS Europe-Africa Facility North America Facility $10,000 No $2,529 No No $0 Option Purchase of special equipment A to reduce reject rate by 50% Option Layout revisions to reduce pro- pro- L E B d uction run setup costs by 50% Option Purchase of special equipment C to increase S/Q rating by 1 star Option Robot-assisted production to in- Eno D c rease worker productivity by 50% No- Asia-Pacific Facility $10,000 No - $3,547 $6,400 No - $1,860 $19,200 No - $5,855 $57,600 $1,385 Capital outlay ($000s) Projected annual cost savings at current reject rate (S0005 Capital outlay ($000s) Proiected annual cost savings at current model count (5000 Capital outlay (S000s) Projected annual cost savings at current S/Q effort ($000s) Capital outlay ($000s) Proiected annual cost savings at current production / comp. $6,400 $1,860 $19,200 $3,119 $57,600 $7,173 No No No - No - SPACE FOR PRODUCTION EQUIPMENT North America Facility 5,000 pairs Europe-Africa Facility Latin America Facility O pairs O pairs Asia-Pacific Facility 6,000 pairs 0 6,000 pairs ( 0 pairs 6,000 pairs Space in 000s Equipment Space at the End of Year 10 of Pairs Construction of Additional Space (initiated in Y10) (without OT) Space Available for Equipment in Year 11 Construction of New / Additional Space (to be available in Year 12) Space Available for Production Equipment in Year 12 0 5,000 pairs ( 0 pairs 5,000 pairs ( 0 O pairs pairs O pairs 0 O pairs pairs O pairs Projected Year 11 Performance i Investor Scoring Measures Year 11 Expectation Other Measures EPS (eamings per share) $2.28 $2.50 Net Revenues 50008) ROE (return on equity) 19.6% 21.0% Net Profit ($000s) Credit Rating - B+ Image Rating 64 70 Ending Cash (8000) Change Year 11 from Y10 448,270 +3.6% 45,682 +14.2% 53,933 +47,859 Europe-Africa Facility Latin America Facility O pairs O pairs O pairs EQUIPMENT FOR FOOTWEAR PRODUCTION Space Available for Footwear Production Equipment in Y11 Production Equipment in Place at Beginning of Y11 (000s of pairs) Purchase of Production - New (000s of pairs) Equipment Refurbished (000s of pairs) Sale of Existing Equipment (oldest equipment will be sold first) Total Footwear Production Capability in Y11 (000s of pairs without OT) Percentage of New / Refurbished Production Equipment North America Facility 5,000 pairs 4,000 pairs 0 pairs 10 pairs 0 pairs 4,000 pairs 100% 0% Asia-Pacific Facility 6,000 pairs 4,000 pairs pairs ( 0 pairs 0 pairs 4,000 pairs 0% 100% O pairs O pairs 0 pairs O pairs O pairs 0% 0% 0 0 pairs 0 pairs Co pairs O pairs 0% 0% Latin America Facility PRODUCTION IMPROVEMENT OPTIONS Europe-Africa Facility North America Facility $10,000 No $2,529 No No $0 Option Purchase of special equipment A to reduce reject rate by 50% Option Layout revisions to reduce pro- pro- L E B d uction run setup costs by 50% Option Purchase of special equipment C to increase S/Q rating by 1 star Option Robot-assisted production to in- Eno D c rease worker productivity by 50% No- Asia-Pacific Facility $10,000 No - $3,547 $6,400 No - $1,860 $19,200 No - $5,855 $57,600 $1,385 Capital outlay ($000s) Projected annual cost savings at current reject rate (S0005 Capital outlay ($000s) Proiected annual cost savings at current model count (5000 Capital outlay (S000s) Projected annual cost savings at current S/Q effort ($000s) Capital outlay ($000s) Proiected annual cost savings at current production / comp. $6,400 $1,860 $19,200 $3,119 $57,600 $7,173 No No No - No - SPACE FOR PRODUCTION EQUIPMENT North America Facility 5,000 pairs Europe-Africa Facility Latin America Facility O pairs O pairs Asia-Pacific Facility 6,000 pairs 0 6,000 pairs ( 0 pairs 6,000 pairs Space in 000s Equipment Space at the End of Year 10 of Pairs Construction of Additional Space (initiated in Y10) (without OT) Space Available for Equipment in Year 11 Construction of New / Additional Space (to be available in Year 12) Space Available for Production Equipment in Year 12 0 5,000 pairs ( 0 pairs 5,000 pairs ( 0 O pairs pairs O pairs 0 O pairs pairs O pairs