Nike Presentation - Group 11

8/2/2019 Nike Presentation - Group 11

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NIKE INC.INVESTOR MEETING


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OURBUSINESS

FY11

FINANCIALREVIEWRISKFACTOR


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OUR BUSINESS


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Business Model


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Business Model


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Strengths

Strong Brand Equity Top25leadingbrands Brandvalue$14,5B(2011) Increaseinmarketshare Leadingplayerinfootwear

&apparels

Products Innovation

Emphasisondesigninnovaon SignificantinvestmentinR&D

Broad Distribution

Network 18salesoffices, 363execuveretailoutlets 20,000retailsaccounts 16distribuoncenters


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Opportunities

Association with NFL

On-fieldlicensedpartnerfortheUSNFL

EPSexpectedtoincrease3%in2012

Opportunity in India

RemovalofrestriconsonFDIinretailsector

Indianfootwearmarketforecastedtoincreaseby56.7%in2014

Brand Reorganization

Reorganizedbrandinto6geographicmarket

segmentswithfewer

managementlayers

Reducedcompanysworkforceby4%

Growth in Global

Footwear Market Forecastedtogrowby17.6%in2014

55.1%ofNikesrevenuesfromfootwearsegment

Expansion into

Emerging Markets Well-posionedinemergingmarkets

WorldCup2014andOlympics2016inBrazil


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Sustainable Strategies

GeographicExpansion

ExtendNikeBrandin6geographicalregions

Targetaddionalrevenueof$3.0to3.5B

by2015

Expandintodevelopingandemergingmarkets

Direct toConsumer

Planstoopen300Nikestoresaroundtheworld

Addionalreturnof$2.2to2.6Bby2015

Workingcloselywithretailpartners

Long-term FinancialObjectives

Highaverageannualrevenuegrowthrate

StrongEPSgrowth ReturnonInvested

Capitalof25%

Increasingdividendswithpayoutrangeof

25-35%ofEPS


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RISKFACTORS


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ReputationalOperationalFinancial

Foreign CurrencyFluctuations

Global EconomicSituation

NaturalDisasters

Celebrity

Endorsements

Focus onInnovation

EnvironmentalConcerns

Macroeconomic

Factors

Diverse

Stakeholders inGSC


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Monitoringofriskwithtechniques(value-at-risk,sensivityanalysis)

Financialinstrumentstohedgerisk LongtermdebtoffixedinterestrateJPandUS$

Global EconomicSituation

Focusongrowingbrandindevelopingcountries Streamlineoperaonsindevelopedcountries&

leverageonexisngconsumerbase

Manageinventoryriskbymonitoringsellthrough&maintainingappropriatesupply-demandbalance

ForeignCurrency

Fluctuations

Financial Managing the Risk


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MacroeconomicFactors

Diversifyinglocaonsofmanufacturingfacilies Adjusngpricesonselecteditems Flexibleinventory&supplychainmodeltorespondto

costpressuresandnewopportunies

Operational Managing the Risk

Natural Disaster Diversifiedoperaonsandconnualexpansionintonew

marketse.g.Brazil

Focus onInnovation

Closeengagementofathletesensuressensivitytoconsumerneeds

Managementofinventorylevelstosupportquickreaconstochangesinmarkettrends


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Reputational

CelebrityEndorsements

EnvironmentalConcerns

DiverseStakeholders in

GSC

Managing the Risk

StrongPRstrategyinhandlingreputaonalriskbacksNikesinvestmentdecision&protectscelebrity-brand-

generatedrevenue

Constantinnovaonandstrategicpartnershipstowardsimprovingsustainability

Building&upgradingfaciliestoleveragenewtechnologies

Strictcodeofethics&measurestomonitorNikefactories

Profileoffactories,workersandfactorymonitoringresultsavailableonline


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FY11


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WERE AGROWTHCOMPANY


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$7.6B+13%

$3.8B+4%

North AmericaWestern Europe $1.0B

+7%

Central &Eastern Europe

$766M21%

Japan

$2.1B+16%

China

$2.7B+24%

Emerging Markets

$20.9B+10%


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53.86

109.24

2006 2012FY01 FY10 FY11

QUALITY GROWTHRevenue 8% 10%

EPS 14% 14%

CAPITAL EFFICIENCY ROIC 14% 21% 22%

Share price


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WEREAPROFITABLECOMPANY


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10.22%

7.42%

4.73%

10.03%

7.47%

1.16%

6.48%

14.50%

8.84%

5.82%

11.79%9.42%

1.19%

5.94%

21.77%

14.89%

13.52%

17.68%16.05%

3.14%

10.21%

NIKE VF ADIDAS RALPH

LAUREN

PUMA PVH CINTAS

NET PROFIT

MARGIN

RETURN ON

ASSET

RETURN ON

EQUITY


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WERE FOCUSED ON RETURNS


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$100

DOW JONES US FOOTWEAR INDEX S&P 500S&P 500 APPAREL, ACCESSORIES & LUXURY GOODS INDEXNIKE

2006 2011

$150

$200

$250

5 - Y E A R C U M U L A T I V E T O TA L R E T U R N


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$0.24 $0.24 $0.28

$0.40$0.50

$0.62

$0.74

$0.92$1.00

$1.08

$1.24

EPSShare repurchases

2001 2011

$ million 01 02 03 04 05 06 07 08 09 10 11

SHAREREPURCHASE

157 237 191 414 556 781 975 1,248 639 754 1,872


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OUR FUTURE


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GROWTH DIMENSION FY1015 GOAL FY11

GEOGRAPHYDeveloped markets mid single digit 7%

Developing markets Low double digit 15%

2015$27B 2015$28B - $30B

PRODUCTFootwear High single digit 11%

Apparel Low double digit 9%


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Q&ANIKE INC.INVESTOR MEETING

Documents

Nike Presentation - Group 11