Projected Year 11 Performance Investor Change Scoring Measures Year 11 Expectation Other Measures Year 11 from Y10 EPS tearingpatu) $2.28 $2.50 Net Revenues 9.006 448,270 +3.6% ROE mon equally 19.6% 21.0% Net Profit (5000) 45,682 +14.2% Credit Rating A- B+ Image Rating 64 70 Ending Cash (5000) 53,933 47,859 North America BRANDED FOOTWEAR PRODUCTION Facility Branded Materials Standard Materials % 68% Production Sendirected by Superior Materials % 32% Specs Number of Models / Styles (60 to 500 models) 200 Enhanced Styling / Features (5000s per nacht) $ 10- k model TQM / 6-Sigma Quality Program (Spr. produced $ 1.00 per pair Asia-Pacific Facility Europe-Africa Facility 0 0- 95 Latin America Facility 0 0- %6 46% 54% 200- $ 10 kmodel $0.90 per pair S S 0 kimnadel s 0.00 per pair 0- kimodel 0.00 per pair 4.0* O pairs Projected S/Q Rating (the style ouality rating ranges from 0.5 to 10. tors) 0.0* 4.1* 0.0* Projected Reject Rate (percentages of airs that will fail inspection 7.0% 0.0% 10.1% 0.0% Maximum Y11 Production Capability without Overtime 5,000 pairs 6.000 pers O pairs Maximum Overtime (assuming al unused facility space is filed at the 6,000 pairs O pairs 7.200 pairs O pairs Beginning the year will production du peril Total Branded Production Needed in Year 11 8,700 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 ito satisfy projected demand in al four regions) (before rejects) 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 entres menu). Year 11 Production Regular-Time 4,000 pairs O pairs 4,000 pairs O pairs 800 0 800 Overtime 20% maximum 0 Capability 1000s of Total Production Capability 4,800 pairs O pairs 4,800 pairs pairs O pairs before rejects) 4033 pairs 0 pairs 4249 pairs 0 pins Branded Pairs to be Manufactured in Y11 (000) Total = 8,282 4,000 pairs 4,000 pairs O pain Branded Footwear Regular-Time Production 33 0 249 0 Production (000s of pairs Overtime Production 282 (7.0%) 0 (0,0%) 429 (10.1% ) 0 (0.0%) Rejected Pairs and reject rate) 3,751 pairs O pairs 3.820 pairs D pairs Net Branded Production 767 pairs O pairs 551 pairs O pairs Production Capability Remaining for Private Label Operations Cost of Rejected Pairs in S000 and $ per pair produced $6,302 $1.68 $0 $0.00 $8,175 $2.14 $0 S0.00 O pairs $000s $000s $000s 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 $000s 31,942 35,488 2,000 4,033 4,500 2,907 9,402 90,272 $/pair 8.52 9.46 0.53 1.08 1.20 0.77 2.51 24.07 O O O O O $/pair 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 39,261 19,986 2,000 3,824 4,500 3,755 7,792 81,118 $/pair 10.28 5.23 0.52 1.00 1.18 0.98 2.04 21.24 0 0 0 0 0 0 0 $/pair 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 Anticipated Y11 Materials Prices Standard Materials $16.00 A per pair Superior Materials $ 12.00 per pair Beginning figures represent actual materials prices from the prior year. Projected Year 11 Performance Investor Change Scoring Measures Year 11 Expectation Other Measures Year 11 from Y10 EPS tearingpatu) $2.28 $2.50 Net Revenues 9.006 448,270 +3.6% ROE mon equally 19.6% 21.0% Net Profit (5000) 45,682 +14.2% Credit Rating A- B+ Image Rating 64 70 Ending Cash (5000) 53,933 47,859 North America BRANDED FOOTWEAR PRODUCTION Facility Branded Materials Standard Materials % 68% Production Sendirected by Superior Materials % 32% Specs Number of Models / Styles (60 to 500 models) 200 Enhanced Styling / Features (5000s per nacht) $ 10- k model TQM / 6-Sigma Quality Program (Spr. produced $ 1.00 per pair Asia-Pacific Facility Europe-Africa Facility 0 0- 95 Latin America Facility 0 0- %6 46% 54% 200- $ 10 kmodel $0.90 per pair S S 0 kimnadel s 0.00 per pair 0- kimodel 0.00 per pair 4.0* O pairs Projected S/Q Rating (the style ouality rating ranges from 0.5 to 10. tors) 0.0* 4.1* 0.0* Projected Reject Rate (percentages of airs that will fail inspection 7.0% 0.0% 10.1% 0.0% Maximum Y11 Production Capability without Overtime 5,000 pairs 6.000 pers O pairs Maximum Overtime (assuming al unused facility space is filed at the 6,000 pairs O pairs 7.200 pairs O pairs Beginning the year will production du peril Total Branded Production Needed in Year 11 8,700 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 ito satisfy projected demand in al four regions) (before rejects) 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 entres menu). Year 11 Production Regular-Time 4,000 pairs O pairs 4,000 pairs O pairs 800 0 800 Overtime 20% maximum 0 Capability 1000s of Total Production Capability 4,800 pairs O pairs 4,800 pairs pairs O pairs before rejects) 4033 pairs 0 pairs 4249 pairs 0 pins Branded Pairs to be Manufactured in Y11 (000) Total = 8,282 4,000 pairs 4,000 pairs O pain Branded Footwear Regular-Time Production 33 0 249 0 Production (000s of pairs Overtime Production 282 (7.0%) 0 (0,0%) 429 (10.1% ) 0 (0.0%) Rejected Pairs and reject rate) 3,751 pairs O pairs 3.820 pairs D pairs Net Branded Production 767 pairs O pairs 551 pairs O pairs Production Capability Remaining for Private Label Operations Cost of Rejected Pairs in S000 and $ per pair produced $6,302 $1.68 $0 $0.00 $8,175 $2.14 $0 S0.00 O pairs $000s $000s $000s 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 $000s 31,942 35,488 2,000 4,033 4,500 2,907 9,402 90,272 $/pair 8.52 9.46 0.53 1.08 1.20 0.77 2.51 24.07 O O O O O $/pair 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 39,261 19,986 2,000 3,824 4,500 3,755 7,792 81,118 $/pair 10.28 5.23 0.52 1.00 1.18 0.98 2.04 21.24 0 0 0 0 0 0 0 $/pair 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 Anticipated Y11 Materials Prices Standard Materials $16.00 A per pair Superior Materials $ 12.00 per pair Beginning figures represent actual materials prices from the prior year