On Holding AG (ONON) September 2026 Capital Markets Day Transcript

Before we begin, today's presentation and our remarks, including the Q&A, contain forward-looking statements. Actual results may differ materially from those projected. Important factors that could cause that difference are set out in our press release issued this morning in our annual report on Form 20F for the year ended December 31, 2025, and in our subsequent reports on Form 6K, all available at sec.gov and on our Investor Relations website. Reconciliations of the non-IFRS measures we discussed today to the most directly comparable IFRS measures are also available on our Investor Relations website at investors.on-running.com.

They told us to dream on, so we did. Redefining what a sportswear brand can be as movement evolves. From performance to expression, utility to identity, we keep thinking bigger, pushing further, daring to go beyond.

Good afternoon. A very warm welcome to Zurich, to our home, and of course to our Innovation Lab. And to everyone joining in the webcast, wherever your day is right now, thank you. Thank you for investing time, and thank you for your loyalty to ON.

Thank you for being with us this afternoon. Since the very first day, ON has been an innovator and a disruptor. We have never stood still, nor rested on our laurels. And today is no different. Encouraged by the success that we've seen over the past 16 years, and also encouraged by the rapidly growing number of fans around the world, we have formulated a bold vision for On's future. Redefining what a sportswear brand can be. So here's our promise for you for this afternoon. You will leave with three things. First, you will understand the On Premium Playbook that connects everything that On does. Second, you will get the backstory on the big news of the last couple days and this morning, news about new sports, news about new athletes, and news about capital allocation. And third, you will see the Roadmap to 29 that turns on into the high-quality earnings compounder in our industry.

Kasper, before we start, let me take you to my kitchen 17 years ago, almost 17 years ago, and show you something. This is where the company you are invested in started. So just look at it, at these weird garden hose pieces, a shaved off shoe, three guys crouching over a kitchen table and talking about running shoe technology. And everyone said that this market was saturated, dominated, mature. People literally thought we're crazy. So our question was, what if running could feel completely different? Not just better, different. A soft landing, a firm push-off, far less strain on the body. And could the best-performing running shoe actually also be the best-looking one, right?

We definitely believed so, David. And of course, I had also brought a spreadsheet to that kitchen. We had studied the market, and we had found something very surprising. Passion runners were investing more into their gear, into their sport every year. They were basically willing to pay for progress. The most valuable customers in the category. However, there was no brand that catered to them exclusively. And I think that was the moment where it all made sense to us. We would disrupt running with innovation, and we would only sell at the premium end. And of course, already back then, we felt that we needed a strong mission, and we all know the power of sports. So what we set out to do is to ignite the human spirit through movement. We called this startup, as you know, ON, and within two years, ON was in 10 countries. within three years we had won first world championship title and after six years on took home its first olympic medal in rio 11 years after that kitchen table we rang the bell at the new york stock exchange we were the first swiss consumer brand ever to do so and so 17 years later today we are doubling down on what has made on special throughout disruptive innovation and a premium playbook what is new is everything around it

the organization the scale and the financial discipline to execute at a different level what has not changed is the founder mindset restless challenge what exists invent what comes next. The experience to dream big and take calculated risks.

But before we look ahead, allow us a moment to look back. When we went public, we made you a promise. We were going to build a much bigger company and make it more profitable at the same time. Then we set out to prove it. So today we can say we did. We never stopped dreaming and we also learned to execute that scale without losing what made on different in the very first place so think back to 21 most people saw in us a running shoe company we of course saw something much broader but granted it was mostly still on paper back then our apparel business was an emerging idea we had just opened our first retail store in the middle of a pandemic nonetheless the asia pacific region was an emerging business and our foothold in elite sports was just taking shape today on is a full toe to head sportswear brand beyond running we have a strong business in tennis training trail and outdoor and also with kids with young movers on is a highly desired brand on every continent of this planet and we are closing in on 100 retail stores in the cities that matter and as if you've seen just this weekend our athletes stand on podiums almost every weekend of the year so here is what you promised you three years ago in 23 at our last investor day the targets we would reach in 26 for top line sales growth we had forecasted more than 26 compounded annual growth per year in constant currency we now expect more than 30 percent ahead of our original promise for growth margin in 23 we promised above 60 percent this year we expect to achieve above 65% ahead of our promise and for adjusted EBITDA in 23 we promised to deliver above 18% by 26 now we expect it to be between 19 and a half and 20% this year again ahead of our promise we grew bigger and more profitable both at the same time. So notice one thing about these numbers. It's not that we grew, plenty of brands grow. It is that the bottom line structure grew faster than the top line. That is the foundation for what lies ahead. Now, of course, today is about the long term. But before we go into the details of our plan, we also want to acknowledge the more recent decisions we have taken that demonstrate On's commitments to our premium playbook and also to the discipline it takes in executing it. In the second quarter we made a choice when the market became highly promotional we could have just followed it down that path but as you know we have never taken that path so we held back selling rather than build inventory in the channel that could potentially compromise on full price integrity down the line. At the same time, our teams, together with our wholesale partners, have emphasized strong in-store storytelling to drive a very successful back-to-school campaign. With this, we have observed a meaningful uptick in sell-out momentum in US wholesale versus the second quarter, notably at the highest ASP and lowest promotion share of our industry. With this, as you saw in the release this morning, we are reiterating our full year 26 growth outlook in the low 20% range that we provided at Q2. The midterm outlook through 29 we are sharing today is built from that base. And Frank will share further details on the Q3 specific guidance later today.

And Casper, you know this, people ask us all the time, what makes on-on? what is the secret behind the success? And here is the honest answer. A single piece of on can be copied. A phone can be reverse engineered, an athlete can sign with somebody else, right? And a beautiful store can be built. What cannot be copied is how the pieces reinforce each other. We call that the on premium playbook and it has five moves. One, exceptional talents and a high risk taking culture done deliver breakthrough innovation, Swiss engineering and our design signature. We make premium products that stand out. Two, these products earn validation from the world's best athletes and talents performing in them. We tell the stories and preference is earned, not bought. And three, we then wow our customers with a premium experience across our own channels and with carefully chosen partners. And four, we protect full price demand through disciplined commercial execution. This strengthens our best-in-class economics and superior margin profile. And five, we reinvest into the one thing that drives our relentless innovation mindset. It's our world-class people and the culture we all live on every day. And then the loop turns better product, stronger preference, better experience, better economics, next innovation, 17 years of turning it. So, simple in principle, demanding in practice, powerful because it compounds. So let us take you through the five moves. Move one, it begins where on has always begun, with innovation and with design. You know, we're a young brand. We have no archive, no established way of engineering and sensation. So we had to become something else. We had to become the brand from the future. Every time we start with a clean slate in material science, in structural engineering, in radical design, in how the shoe is actually built. And our inspiration is the athlete. And we obsess like one over that millisecond of grand contact time, over details so small that the everyday runner simply feels them, and the elite athlete knows they will win the race. So innovation leads, design makes it felt. One builds performance, the other makes it visible, desirable, and unmistakably on. So yesterday, we opened the doors of OnLabs to you, and you were able to see firsthand we have a very deep innovation pipeline for years to come. So On is no longer just about cloud tech. Ons foam competence centers that you saw, creates formulas for new super foams and combines them with structural engineering. So it's chemistry and it's physics. Light spray now brings the performance and manufacturing of footwear to a new level across all categories. And here is where this leads, right now. In running, we are rolling out the biggest innovation cycle in Ons history. Not one shoe. Every major running franchise gets its next generation. The Cloud Surfer 3 will be first out of the gate. When we take what the running shoe learned and bring to the street, then we create something special. Take the Cloud Tilt, our technology translated into lifestyle. Today, one of the fastest growing sneaker franchises in the industry and the precursor of much more to come. And apparel, you mentioned it. Four years ago, just an emerging idea, right? Today, our fastest growing category. And the mission from here is clear. It became very clear after our fashion show this morning as well. When with her, the woman who is redefining what sportswear is for her. So, run, sneaker, apparel, three engines, all born in move one. So, Kasper, take them into the lab.

So, move two coming up. The strongest innovation in our experience happens when a new technology meets a world-class athlete. Athletes are our most demanding customers. They're as obsessed about marginal gains as our own engineers. But a technology only becomes a breakthrough on the right feet. So allow me to take you into the lab. It's September 23. The Paris Olympics are 10 months away. We had just developed light spray to a point where we felt it was ready to be applied to a product. You know, Light Spray is a robot spraying an upper in one continuous filament in about three minutes. And we had a dream. What if we could win an Olympic medal in the marathon in this technology? So Olivier and the engineers, they flew to Boulder, Colorado, with a few rough prototypes in the bag and one mission. convince running superstar Helen O'Beary to build the world's fastest marathon shoe with us. Now you can imagine, Helen had many questions. Helen had opinions, very strong views. So huge shout out to the team. Nearly 50 iterations later, she put a pair on and finally said the words we had all been waiting for. Now, we have made the best racing shoe in the world. She then wore it in the Boston Marathon and won. And in Paris, she made our dream come true and won an Olympic medal. So, technology plus talent equals breakthrough. Roger co-engineering his compact shoe, Iga winning Wimbledon in hers, Sandia co-designing her own collection, our sprinters their world championship gold winners in spikes they helped great and most recently roncevich the hyrox world record in shoes we have built together you see the value of this validation in one number global brand awareness for on is now above 30 percent and in the growth phase ahead we are working towards more than 50 percent So when you see a new athlete partnering with ON, we actually see an opportunity to disrupt through innovation and to grow brand awareness at the same time.

So, move three. Elevate the experience in how we go to market and how we manage our channels. When people want your brand, every touchpoint becomes a chance to make that desire stronger. So, picture walking into one of our stores. The light, the materials, one shoe on a shelf with space around it. Someone who runs talking to you about how you run. Nothing in that room is accidental. Every detail says it's premium and this is on. Now, a question we get often, is that a store, a loss leader, that is just dressed up as marketing? And a very clear no. Our own retail is a profitable business in its own right. And so we are doubling it and planning for 100 additional stores by 29 in the most important city centers across the planet. Every one of them strengthens the brand. And every one of them is a full, toe-to-head store, which is why retail and apparel grow as an ambition together. And the same is true for our biggest store, our website, and the loyalty it builds through digital experience. And this does not stop at our own door. Our wholesale partners are carefully chosen, and we work with them on how on is presented, and we protect our premium positioning so that wherever you meet on our site, our store, a partner's shelf, it's the same brand, the same experience at the same level. And that is exactly what makes Move4 possible, right?

Yes. Let's now have a look at how the on-premium playbook creates strong growth and best-in-class margins some of you may have walked in into this room with a question on your mind is on just a growth story or is there more to it and yes there is more to it to be very clear we have never pursued growth for growth sake growth has always been a result a result of the on premium playbook what we have shown year after the year is that ON can outgrow the industry and expand margins at the same time. And in the phase ahead, we expect to do both again. Grow faster than the industry and grow adjusted EBITDA faster than revenue. So when radically innovative products are validated by the world's best athletes, people want them. And when people want what you make, you earn pricing power. The premium playbook ensures that our desirability is protected by a balance of demand and supply, following a disciplined full-price strategy, carefully curating our go-to-market and our channels. No volume at the expense of the brand. And this leads to move five. Reinvestment. The financial results overall and the margin that this discipline produces goes back into our people, our labs, our technology, and into the innovation culture that fuels it. Let me talk about this innovation culture at ON. This is a culture of yes. It's a culture where possibility beats constraint, where teams allow it to dream and to act on their dreams. Really, at ON, we look at it this way. Failure is not trying and falling short. Failure is never taking the shot. And this is where Olivier David and myself, we still make the biggest difference today. When the boldest ideas show up, we are there and we're the ones who say yes. That, together, is the on-premium playbook. So in 23, in economic terms, we call the outcome of it durable growth, you remember. As we now set out to redefine what a sportswear brand can be, going forward, we will aim for what we call premium growth. Through 29, On aims to become a high-quality earnings compounder.

So now, why is the opportunity ahead bigger than On? So, quick question. Who in this room has already moved today? A run along the lake, the gym, a long walk to get here. Some of you are jet lagged, so I give you 24 hours. Who has moved? Hands up.

No pressure.

Look around you. That is the shift. Sport has moved to the center of our lives. Movement is no longer a weakened activity. It's an identity every day of the week. We call this group, and of course now you as well, with your hands up, the movement class. A generation that treats health, vitality, and longevity as the new premium status symbol. And we are not the only ones seeing it. McKinsey surveyed 9,000 consumers across the US, the UK, Germany, and China last year. McKinsey's words, wellness has become a daily practice, not an occasional purchase. And the largest cohort in that market is a quarter of consumers, with more than 40% of the spending. Their number one buying criterion, not price, quality. now look at your wrist and even fingers sport sport watches rings devices a 60 billion dollar market built just in the last 10 years it spans every age bracket and it is looking for performance brand that deliver premium innovation and design rings a bell right so as you know multi-billion dollar brands have been built exactly at that intersection, the intersection that is at the heart of On's playbook, the vacuum cleaner that performs like a jet engine and actually looks like one and sells at five times the category price, or the computer that became a personal identity device in your pocket and on your ear, beautiful shell, innovation inside premium price unlike the scarcity playbook of luxury fashion which by definition is scarce on premium innovation plug playbook opens a far bigger market that market is our opportunity kasper how big how big is the opportunity we believe it's big and it's getting more

interesting so global sportswear generally is about 350 billion swiss francs and it grows at three percent per year the premium segment of that market sits at 125 billion today and is growing more than twice as fast and we expect it to continue to grow faster by some estimates premium apparel alone will be a 71 billion franc market by 2030 but be not mistaken this market is not lifting every boat it favors performance and it favors premium brands that stand for something specific the premium consumer is looking for somewhere credible to go and that consumer is also redefining premium less about what you own more about how you live spending on experiences so travel events recreation has outpaced spending on goods for a decade we feel that in our own numbers. Our average footwear price has moved from $145 to $170 in just five years, with demand growing. Meanwhile, the luxury brands have priced out some 80 million aspirational customers in the past two years. We're asking, where does that aspiration go? We believe it will go into well-being experience identity and into premium sportswear three things become very obvious here one our addressable market is sizable and it's growing two on is growing considerably faster than the premium segment of the sportswear market and three on is uniquely positioned to capture this growth. So when you ask about our addressable market, we define it by the movement class and everything they wear to move through their life. That is our market and we're ready for it. Today we will present to you how we will capture the growth in our addressable market across product, brand and channels. Very simply put, in performance we will lead with running. In lifestyle we will lead with sneaker and in apparel we will lead with her.

The movement class reach is far beyond the sports we play in today and it will be easy to chase every category. We don't. Every new sport has to come through the playbook. Look at the sequence of our last 17 years. Running, then all-day footwear, outdoor and trail, tennis, training, young movers. None chosen because the category was big. Each chosen because we could bring something unique to that sport, to the sport that that sport did not have. And because it made on more relevant in the world and for a bigger community. Three conditions. Can we disrupt it with our innovation and Swiss engineering? Does it build cultural relevance beyond performance and widen our market and is it ready to be premiumized tennis actually passes all three six years in tennis boasts our highest customer lifetime value a 61 net sales caker since 21 and millions of people who found on who had never previously known us when we were mainly a running brand the next chapter follows the same rule four days ago we told the world on enters football and here is what happened next 80 billion earned media reach eight billion earned media reach sorry i was a little bit exaggerating eight billion earned media reach the most seen story in On's history. In Mexico, 312 times our baseline reach. In China, 344 times our baseline reach. 50.5% share of voice in all football-related media mentions. 72% of new followers we attracted since the announcement are under the age of 35. In organic social media, over 4,000 times the engagement than our comparable average. This is what football does to a brand's relevance before we have sold a single boot. This morning, you stood on real grass in a tent. So the first pieces of our football world and heard Thierry Henry and Kylian. So both incredible icons and legends. So I'm not here to announce football. I'm here to tell you what it does to this company. And I'm talking about global football, not the other one. So 140 million watched the Super Bowl, one and a half billion watched the World Club final. A footwear market of roughly $29 billion, heading for 38 by 2030, growing fastest in Asia-Pacific and in the women's game. But again, we're not entering because the market is big. We're entering because at the premium end of the sport there is still space open radical innovation on the pitch extending to the pavement and the runway a few incumbents on the architecture of the category they compete head-to-head we will play a different game and here is how we know we can build a sport not just sign one Look at tennis. Roger didn't become just an ambassador. He became a partner, an owner, a co-creator. And around him, we built the generation, right? Iga, Ben, João, Flavio. This is how ON builds a sport. And football starts in the same way. Thierry Orny, one of the greatest ever to play the game, is our director of football, helping us since 2025 on our strategic entry, and you heard him this morning. Kylian Mbappe, the defining player of his generation, fresh off the World Cup golden boot. Sydney Scherpenleib, Switzerland's finest, the first of a women's roster you will hear much more about very soon. So, a builder, a legend in the making, and the next generation. Kasper, Sidney, Kylian and Thierry, on our side, right? We carve our own path.

Absolutely. Do you want to hear why we can? Our innovation engine, and you have seen the Lyspray product this morning, has given us an entry ticket nobody else holds. I'm quoting Sydney here, I have never felt the ball like this before, is what she said after her very first practice in an early concept of our upcoming performance football boot that you have seen at this morning. This is the disruptive power of light spray. On a football boot, light spray does something no boot has done. It puts almost nothing between the foot and the ball. As always, innovation is really at the core of our playbook. As we've just heard, football produces the most watched human beings on the planet. They're heroes on the pitch, but they're culture icons of it. Again, the on-premium playbook in action, combining innovative product with validation in the elite performance space that then needs to translate and will translate into cultural relevance. Now, picture football in our own stores and on our online channels. What it can do to our relevance with wholesale partners and to consumers that meet on for the very first time and they meet us in a new arena. Football instantly increases on's awareness and relevance in many corners of the world. in South America, Africa, in Southeast Asia, regions where the sports is not a category but culture. Some would even say it's a religion. We're excited about football, and you will see more and more momentum building over the next months and a true market entry over the course of 2027. Now, from the football pitch to the golf course, Which, looking around this room and the reactions we had this morning means the world to quite a few of you. Roger, of course, let the cat out of the bag this morning. So let me repeat. In the first half of 27, on enters golf, toe to head. It is no secret that many golfers are already playing on. You might want to know, is that a coincidence? Or is it maybe that our chief design officer, Tilo, is a golf fanatic, that our president and COO, Scott McGuire, who will hear in a second, grew up in St. Andrews, the home of golf, or that our partner Roger now plays rather more golf than tennis. In any case, here is the business case. Golf is the most premium mass sport in the world. Roughly 150 million players, over 5 billion annual spend in golf gear, and a consumer who spends more per head than in any other sport that we play in. And it has changed since post-COVID. A younger, more diverse, and style-conscious player is now coming onto the course. This is ONS consumer. So let's run it through the three criteria that David outlined, the three criteria of the ONPremium playbook that define whether we can enter a new sport or not. First, can we disrupt with innovation? Yes, golf footwear has barely moved in a decade. Is there cultural relevance beyond performance? Of course, golf is fashion, travel, and status in one. And third, do you think golf is ready for premium? Golf was born premium. So, football and golf, the same ambition. Bring the playbook into new arenas with products that perform at the highest level and experiences that connect course, stadium, and street.

So how do we capture this opportunity? The movement class, running, sneaker, apparel, as the immediate growth engines, training, pennies, football, golf, to build for the future. There's ample room ahead of us to run the playbook. So the rest of today is about how. How we operate it. how we run this business. And let me start with us. Throughout Zon's history, the founders have set a strategy, taken the operating decisions that matter, and driven the major growth engines ourselves. That has not changed. It is why we are standing here as CEOs, and why Olivier, as founder and professional athlete, remains absolutely instrumental at the very heart of ON in innovation. But a playbook at this scale needs a leadership bench, and ours is very, very deep. You have met many of them today. You will hear from more this afternoon. One of them is responsible for turning the playbook into daily execution across the whole company, our president and COO, Scott McGuire. Scott joined us 18 months ago after helping scale some of the world's leading premium innovation brands. Again, rings a bell, right? His job is to keep strategy, innovation, product, brand, and commercial execution connected and to keep us fast and disciplined as we grow. So, Scott, please join us here on stage.

Thank you, David, and thank you, Kasper. The bigger a company gets, you all know, the easier it is to get slower, to get more complex, to get more siloed, and to be much more interested in itself than its consumer. My job is to ensure that on does the opposite. We've been changing our operating model under one principle. start with the consumer and work backwards across every function, across the whole journey from the idea in the lab to the moment someone picks up a box in the store. It's not just a concept. Let me bring it to life with an example of how David, Casper and I work every day. I've spoken to some of you about this today already but last year, Casper and I flew to the US We spent a whole day in a run specialty store We watched as people came in They picked up our shoes And put them down Some chose on And some chose others And we went super deep on why Some of the answers were in the product Some were in the storytelling Some were in the channel, and even some was the information on the side of the shoebox. The store staff couldn't quickly work out what product they were pulling. We were losing out exactly when it mattered. We immediately got on the flight back to Zurich, and we put every function around that one day in that one store. And the result, a product built in record time, with an engineering breakthrough we'd been chasing for years, the combination of Superfoam and Cloud Tech together, the structural engineering of Cloud Tech. We had a whole new color palette for that market, a new way of explaining our technology, a totally different channel plan for that launch. and, of course, even a new label on the box. The Cloud Surfer 3 launches next month. Early feedback from running media has been exceptional. That is what a consumer-led, cross-functional organization does. It turns insight into action quickly across the whole company. And it's how we're running all of the 2029 strategic plans. And it's how we'll scale faster without losing the premium playbook discipline. Every decision for us comes back to two questions. Does this make ON more relevant to the consumer? And does it strengthen the economics? Kasper. Thank you, Scott.

But, yes, and now let's look at the economics. Let's look at what ON's premium playbook aims to deliver for shareholders in the next three years. By 29, our goal is to add more than 2.1 billion Swiss francs to our net sales. This will turn ON into a roughly 7 billion US dollar global sportswear brand at current spot rates. At the same time, we aim to maintain our premium profitability profile with a gross margin of above 65%. The combination of disciplined investments and leverage in economies of scale will enable us to grow the bottom line faster than the top line in order to achieve adjusted EBITDA margins of at least 22%. Our goal is to make sure that the bottom line grows faster than the top line. We anticipate an adjusted EBITDA CAGR of above 20%. This whole team is laser-focused on delivering the plan for 2019. We will continue to apply the On Premium Playbook with a lot of discipline. The Playbook has delivered unparalleled results in the last period, and we will keep executing it play-by-play in the future.

So this year, the team at ON expects to deliver a business of roughly 3.5 billion Swiss francs. And with the growth engines you will see this afternoon, we have strong conviction in our premium growth path. Which brings us to the question of how we use our excess capital. You may have read this morning that we are announcing a $1 billion share buyback framework over three years. And of course, our first priority for allocating capital has not changed. Reinvest into the business where the long-term return is highest. You heard it, innovation, product, brand, markets, and capabilities. But our success now generates more capital than our strategy and premium playbook requires. Like you, we are shareholders, and capital the strategy doesn't need belongs to you and to all shareholders. That is the whole logic. Not a substitute for growth, but an outcome of the premium business model. So 17 years ago, three people sat at the kitchen table. That company is now a high-quality earnings compounder and is returning up to a billion dollars to its shareholders. That is what premium growth means. Remember this? 17 years ago, three people believed in this shoe. Today, millions of people in more than 90 countries believe in them. Some of them are in this building right now, and you will meet them this afternoon. Everything you have seen today, every product, every category, every store, is the issue, turns through the playbook again and again. Not by three founders, but by a world-class team that has made the playbook its own. So if you take three things from this stage, take this. One, we've done it before. Three promises made, three promises not just kept, but actually beaten. Two, the consumer, the movement class is moving toward us. And this movement class is real. It is global, and it is just getting started. And three, we have the people. An innovation culture where, yes, is the default, where the boldest idea gets the shot and a leadership team that turns it into results quarter after quarter. Casper, Olivier, and I are here to protect that culture. But it no longer depends on us. That is the point. One has come a long way from that kitchen. And everyone in this company, founders very much included, is more excited about what is ahead than anything behind us. The brand from the future, the on-premium playbook, simple in principle, demanding in practice, powerful because it compounds.

So, dream on. thank you thank you for listening to our dream and to the plan now this afternoon it's also the proof and it belongs to the people who built the dream together with us Scott why don't you show us what's ahead for the rest of the afternoon so you have just heard the playbook from those that wrote it and this afternoon you're going to hear it from the people who run it and strengthen it

every day. Each session connects and brings the playbook to life. First, we're going to hear from Katharina Berg on people and culture, our most important asset and the reason we really believe we're going to deliver this plan and the premium playbook. Then, innovation and design, how science driven innovation and our design language create differentiating product and pricing power. then community and brand how we turn what makes on distinctive into cultural relevance and relevance into demand then GTM and channels how we connect people with on through a premium experience while growing with discipline and then finally Franks Lewis will show you financial outcome, the real result of all this work. For these sessions we have one ask. Do not hear them as separate strategies, they are deeply connected and integrated to one another. You'll see a focus on the three immediate growth engines and they're running through all of them. Remember performance led by run lifestyle led by sneaker and apparel led by her this is where the economics of the next three years will be made and the new sports the categories we just announced will help us build the growth for decades so So with that, Catharina, please.

Thank you, Caspar, David and Scott. My name is Catharina Berg. I might pronounce it differently because I'm not Scottish. I head up everything talent here at ON. I'm going to talk a bit about something that I'm super passionate about. And it might not be strange with my role. If you think about that, this is what I've been doing for the last 30 years. I know I'm in a room with a lot of people that is good at math and numbers, so you already figured out that I started when I was 12. But what's unique with this company is that it's not just the person that heads up HR that is passionate about people and culture. You just heard the founders, and Scott, but the whole executive team are very, very dedicated, and they believe in culture as something that will set us apart. so so so that uniqueness is what we build and what makes us drive and find the talent for the future on an ongoing basis so that is also what brought me here it's more than a year since I joined this company I worked for some ethical brands and all of them all of them said that culture was important but none of them put people in culture first at their investment days So this mission of ours is the reason why I came. This is the reason why most of our people come to work every day. It's something that we strive, something that really talks to us. You heard David and Kasper say and also allude to some of the most or globally researchers in the world. Everybody's interested in movement. Everybody is interested in longevity, and everybody is interested in health. And this is why this is important, and this is why people are engaged. So at the moment, ON is 4,880 people. We speak more than 110 languages, and we are in 33 locations and growing. So in a fairly fast pace, we've been growing. But that means also if culture is important to you, you have to make sure that you have a structured way to grow, that you are very, very deliberate of what you do, and that everything that you do means something. So you can even say that you can summarize our whole existence with the four Ps. The people in the organization, the product, obviously, in a company like this, the planet and our promise to the planet, but also profitability. But you can't do really anything with the last three Ps if you don't double down on your people. It's not going to move. It's not going to change. It's not going to evolve. And therefore, people and culture is truly very important to us. So everybody that works at this company are relentlessly obsessed with excellence. That is how we drive the premium paybook for us. We also, I think going back, thinking about what it was when I joined here, that really struck me as very unique. It's a very humble culture, but we've never done. Right? and it's unprojectly resourceful in everything that we do and everything that we strive to achieve. We dare to think differently, act differently and do things our way. You heard Kasper and David say that one of the most important things that they do on a daily basis is to say yes. It is true but I dare to say that everybody that comes to work it on may may frame it slightly different they might say what if and why not it's the same thing as yes we can we dare to think different we dare to act different and therefore this is there's a constant movement change is the only concept that we have and it's all about raising the bar for all of us so bold culture doesn't happen by a reason right they are defended but first they are designed you can either be a passive driver to your culture or you can lean in you can also understand that this could be what really sets you apart standing still is not necessarily an option for us and i think you by now since you known us for a long time and you've been loyal you understand that this is part of where we're going per design we are per design we are made to move forward and i think you know the progress and everything that we build how we attract people how we grow people how we engage people and also how we retain people is very much the answer of what we do so culture is a part of our called core business the way that we do things the way we choose and we also think it is the advantage so if you if you ask our organization and our people which we do on a yearly basis 87% states that they know that they contribute to on they're proud to work here and all of you know proud people perform so So culture of innovation, you're going to hear that word many times this afternoon. It is exactly what is unmistakably us. Culture of innovation, if you think about it, what does that then mean, right? It is very much still, for all of us, an entrepreneurial mindset, yes we can. It is also about speed and execution. You heard Scott give many examples of that. It is innovations everywhere. It's not just in the product lab. It doesn't matter if you're part of the legal team, if you're part of the finance team. Can we do things in a different way, and what is the unique way to do it here? It goes right through cross-functional in everything that we do. innovation also is part of the attraction a good idea is a good idea whoever comes with it and that is also the reason why as we grow and you know most companies don't get faster when they grow they actually go slower that's not true here. You also know that to make simple easy is getting harder and harder the more complex you get. Our people say that they find us to move faster and faster. And again, innovation, how do you make sure after year after year after year that you keep innovating? We see, no matter of size, that we keep doing that in a good and fast way. This translates into the super exciting innovation, like you heard it before, spray light, right? Clean cloud, and cycling, just to mention a couple of examples. But it also is how we bring and design apparel into the market. And obviously, it would be very, very remiss on me if I don't say how we also bring the beautiful sport of football into the world. Right? I think that cross-functional way of doing it in a very fast, almost crunch, our crunch week, crunch year, of doing things that most people might have thought that that could be the next play, but do it in that way precisely, and also communicate, market, everything, again, from legal to all the functions that need to play part. I think that is where we are very different. So to show you a couple of data points to you, 87% of all our people leaders feel encouraged to innovate and have the autonomy to do so together with the teams. Think about it. It's close to 90%. And that number, as I said before, has actually become higher and higher. We're not happy there. That would not be us. So we're trying to make that something that is constant. This demonstrates also that we are able to do so. 86 of our people leaders respond favorably when they say that they can do this and they feel that they are encouraged, but also that they have the autonomy, the freedom and the flexibility to add something and have impact we know in all the research that we see around the world that most companies are struggling with exactly this so when we compare ourselves yes we are in a good position we're doing a lot of things right but that means that we need to lean in we need to make sure and as leaders we also need to remove those blockers so growth is our baseline when our people grow, we grow. When our people doing well, we do well too. Easy to say, harder to do. But growth is really embedded in our DNA. It's connected to everything we do on a daily basis, but it's also rooted in that we are a purpose-driven company. We have that north star we had that beacon and people do know what our vision and mission is so as we usually say when the why is clear the how is easy therefore it's also a strength of ours that everybody understands what we are doing where we're going when we are going and how we are doing so a couple of hero events that will help us as we grow as we become more complex we are more parts of the world and we are in every time zone of the world and then one of those things is something we call ignition day so we fly every person that comes to and joins this company no matter what their role is no matter what their function is no matter where they based they come to Zurich they come to the mothership where you are now to hear the founder stories to meet most of the executive team to understand what makes us uniquely us to also find a way so they can navigate and contribute much faster than they would wouldn't otherwise. 93% of everybody that's been to Ignition Days said it helped them achieve and perform much faster to understand who we are and also what their role is. They also found and met other colleagues that would help them do their job much faster. Another of these hero events was that we do understand that our leaders, our people leaders or our manager if you will, are very, very important. They could either be blockers or they could be the coaches, the mentors, the people that push back, that also enables, but in the long run also make sure that we grow the next generation of leaders. So we created and we designed a leadership program on the principles that we have, so people are set up for success today and tomorrow but also that we continue to foster that culture of innovation so we now in our ninth cohort again it's a 9.2 out of 10 scale of do you now think that it's easier for you to again foster develop up coach but also push and challenge the people that reports into you so we can do what we are set out to do here which is not a small feat and then we are launching a new universe and most of you would maybe think oh is that another intranet if you think about it especially if you have different types of skills different types of roles you are everywhere in the world for us to have a tool where we can communicate we can inform from the same person or from the same message at the same time to everybody no matter if you work in an office or you work in a store it's quite powerful all these things are there just to mention a couple to make sure that everybody's more or less culture vaccinated because we think we are on to something special and these are the things that we also all the time pressure test so it's not a chosen truth or what's working here and then we keep them forever because our culture obviously have to evolve our people is our culture and our culture is our people and it needs to evolve for different reasons but one because the people that's been here for a long time, they have to understand that they matter. And the people that join also have to understand that they also matter. And together we are creating and we are set off on a journey that is super, super important to us. So the commitment that we have to all the people that join and the expectations we have on them as a couple of things one what helps guides us is these five spirits in most other companies you would call them values they've been with us for a long time they served us really well and the thing that really sets us apart is this in most companies you ask do you know what the values are and maybe scores okay here it scores over 90% you could go okay and then it and we ask them do you live by the values do you embody the brand and again it scores super high what is different at this company compared to other companies is do you We also think that other people in other functions, in other roles, live our values. And everybody again says, I truly believe so. So this is the values or the spirits, as we call them, that is here to guide us, make decisions, but also how we show up, how we treat each other, and the playbook of on. so growing our people is a commitment that we have we dare to be trust-based we dare to be value-driven but growth is very very important i said earlier when people grow the company grows so that is a promise but also something we expect from our people they need to lean in they need to stretch they need to make sure that they grow with us we need to make sure that succession planning is on point we need to make sure that we stay a high-performing team very much back to the athlete spirit how can we all the time make sure that we find new ways of doing things in a different way and not changing for the safer shaking but just to improve we all also know that it's much more fun to learn new things if you believe in a growth mindset and we do then it is super super super important that we find ways to evolve push but also develop and grow your people this all of these things makes on and destination employer employer and what we have seen which makes us both happy and proud is lately we have had the reason and opportunity to add a couple of temple hires and it's been easy for us to attract people that has not necessarily had the same experience and skill set that we needed before and these people can choose any employer any brand in the world and they can also live in most parts of the world and we still come out on top which is a strong signal to our brand our attraction and our employee brand so if culture is our kind of original innovation lab and when we dream together we dream big together and we grow and we become something else together everything that I have described in this session is an innovation mindset you heard before like being complacent is not necessarily choice here doing it the same way over and over again it's not necessarily us the cultural growth and the investment in our people it's kind of a service to something larger on has always been a company with a sense and very clear sense of purpose as we come become bigger and bigger and bigger company we need to master how to scale and some of us have have done that before it's not necessarily easy but having that strong and very relevant evolving culture will help us do that our premium standard completes this logic our culture extends to how we treat our people it extends to how we engage our community our communities, it also is kind of a fact that we refuse to compromise. Again, unapologetically us. The same discipline that goes into building product goes into building teams, building functions, building our culture, building this company. I'm just gonna end off with saying that what you have heard and seen this morning and while you hear my colleagues come up here and give you examples of what we're doing, I think it's very very hard not to be very excited about what's next and also what the future holds. And with that I would love to invite up on stage my dear colleagues Tilo, Olivier and also Scott to talk about innovation and design thank you hello hello thank you katerina hey i couldn't read more right

i as you you probably don't know so much but there's still some people in the audience i love people and culture is everything to me and the beauty of it that both you know both enable actually innovation and innovation is not just innovation innovation is a important mindset at And I'm not here on stage by myself, over the next 30 minutes or so, we're going to talk about innovation, product, and design as well. And hey, the good news is my presence on stage is eight minutes. Now it's 9.30.12 in the US. The market opens in 18 minutes. You don't have to make any notes for my presentation. Can I ask you to close the laptops for eight minutes only for me? I think if, you know, I think there's information you want to take notes from Scott, so please feel happy to. Eight minutes. Be with me. I need your eye contact. Hey, I don't know how you feel, but, you know, looking at the industry lately, I sometimes get the feeling that many of the legacy brands they view innovation as a single annual event tied to a product circle. At On, that's not the case. You've heard it a couple of times, even yesterday at the Makerspace. It's a relentless, continuous loop across many, multiple teams. It's how we formulate the new foam, it's how we sequence the textile, but also how we re-engineer our supply chain. And with us, innovation, it's not a corporate initiative. I said it before, it's a mindset. You know, and it's also, to innovate means it's also a mindset to fail. We celebrate failure. If you don't fail, you're not trying hard enough. And I'm sure you have heard us, you know, saying, dream on, and also that is not a marketing tagline. It's an engineering protocol. Start with athlete's intuition. Create in our makerspace with our engineers. And then we go validate in our labs with our biomechanics. Test to failure. We want the product to fail at some point in our labs and out in the fields like. And that loop goes on and on and on. What we have learned from that protocol is pretty easy. It doesn't make sense to make, you know, for a breakthrough, it doesn't make sense to try to improve the product by only 5%. Real breakthroughs, they come from questioning the core assumptions the industry is built on. And to make those breakthroughs a success every time, I circle back to Katrina. We need people. We need the right people. And we need a lot of people. Over the past years, we brought 400 specialized designers, engineers, and sport scientists right here to Zurich to let those disciplines collide. And sometimes I tell you, it's literally collide. To exactly understand where this obsession for innovation comes from and how this entire engine scales today, I want to take you back where it all started. Probably some of you know I've been a professional athlete, and it was in 2009, you know, again, when I was retired for a couple years, I realized that, you know, I knew that the competitive years were over, but my drive for running was still there. So I kept searching for a running sensation that simply did not exist in the market. And at that time, if you circle back, probably you'll recall, you know, the market forced a permanent trade-off. You either could take heavily cushioned, soft, or thin, hard, and fast. Basically, you had to choose between running on mattresses or on concrete bricks. Me, of course, I wanted both. A soft, protected landing paired with a firm, explosive push-off to drive forward. But, and I guess just lately, you have seen some Instagram posts. You know, I've tried to pitch that concept to legacy brands. Hey, they looked at me, you should have seen their faces. They looked at me like I was crazy and told me the physics were not possible. The trade-off was fixed. Not a good idea. Never tell an athlete something is impossible. I'll go fix it. So we went into my garage in the tiny village I grew up. By the way, I still live. Much to my neighbor's ongoing concern, by the way. But after tinkering with a few questionable ideas, we took a pair of scissors. I mean, you see it here, right? To a garden hose, glued it on a shoe. And I know exactly what you're thinking now. And yes, you're totally right. Most billion-dollar companies start with sophisticated pitch decks or Silicon Valley incubators. Us, we started with garden equipment, a scissor, and some glue. To be very honest, initially, I mean, come on, would have one of you go out running these kind of shoes? Probably not, right? I had a hard time because, hey, it looked uglier than this prototype. It was even higher stacked. It was ridiculously heavy. And on top of it, I had a reputation to protect. I was still an athlete, right? But only a few steps in, I knew I was onto something. I've never felt that feeling before. I've gone around the planet a couple of times in my life. But ten minutes in, things changed. The friction that you get from running probably melted the glue. And pieces of the garden hose went flying off left and right into the bushes like small rubber missiles. Oh boy, the neighbors definitely thought I've lost it. But for those first ten minutes, the compromise was completely gone. I didn't have to choose between soft and hard, slow and fast. It was all there. And that moment, that particular moment, that was the moment the spark got on. I felt compelled to create a running shoe. Not for professional athletes, for anyone, for the people. But of course, I had no idea where to begin. And that hands-on, curious and slightly chaotic spirit was born in my garage, and it remains the unfair advantage till today. Still, to confirm I wasn't hallucinating, I wanted to take the raw concept to some experience biomechanics. So I talked to people at the ETH, which is super close to here up the hill. The ETH, by the way, is the Swiss Federal Institute of Technology. and we mapped how hollow structures could collapse vertically to absorb impact, then instantly lock to form a rich platform to put propulsion. Yesterday, you had the chance to walk our search maker space, and saw, you know, where Thor was the guy that presented. And that facility still today is the link to the spirit of innovation in my garage back almost 20 years now. The main difference, and it's really the main difference, the spirit hasn't moved. It's the main difference. We have state-of-the-art machinery and hopefully less of the fragments flying off nowadays. What we've learned from since is also pretty simple. True innovation begins with a genuine idea, with bold decisions, raw materials, and very important, rapid prototyping. And we don't spend six months exchanging digital renders across the ocean. We focus on innovation, and it all happens right here in Zurich. Look, it's that simple. If a designer has a crazy idea over morning coffee, they don't create a PowerPoint presentation. They don't even ask for permission. What they do, they simply walk, run down to the makerspace, They cut up a shoe, fine-tune a midsole, mold a plate, and have an athlete generating data on a treadmill all before lunch. And that compromise of time to prototype is how a crazy idea with the garden hose became a movement, a global movement. And it's how we will continue to scale radical innovation across the globe. And to show you now how innovation translates directly into commercial marching and category growth, I hand over to Scott, our president and CEO. Thank you, Olivia. Thank you.

So last night, you walked through our labs, you saw firsthand how deep our teams go. we're here to connect the dots on why this engineering depth builds competitive advantage we've scaled what olivia built over 17 years ago into a world-class innovation engine and we believe that even our recent unparalleled growth in lifestyle remember david talked about it is authentically earned because of our technical performance credibility. This link is so incredibly important for us, and it's the reason that our whole strategy, everything that you're hearing today, deeply invests in performance innovation. It doesn't just fuel our performance business, we truly believe it fuels our lifestyle business as well. We built a portfolio of over 650 patents to translate this immense engineering output into an unmatched business model. And we think in three pillars. Science to technology, cloud tech and Swiss engineering, and light spray. So let me talk about pillar one. science to technology. Olivier alluded to it. To own human movement, which is what the teams you've seen yesterday strive for every day, we start with a deep scientific understanding of biomechanics. Insights from this measurement are the absolute catalyst to invent all of our new technologies. So let me make it real with an example. Casper talked about Helena Beery. Helen Iberia comes to us, this is a real story, and says her legs feel like lead in the last 10k of a marathon. So we go deep into the divine mechanics. And with independent studies into a new research phenomenon in running called leg stiffness, we go really, really deep into understanding that. We use that insight to invent a whole brand new cloud tech, cloud tech sphere. That optimizes leg stiffness, and then we build the latest racing product that you see when we launched two months ago. Not only does that same study show a huge jump in running economy, our elite marathon athletes, of course, including Helen, all go on to smash their PBs as soon as they put that shoe on. This approach is now what we've taken across all of our categories, from running, tennis, apparel, and now football and golf. So that's science to technology. The second pillar is cloud tech and Swiss engineering. So what does all that mean? So when people think of ON, they think of the shoe brand with the holes. That's what people know as cloud tech. For us, cloud tech is something very, very different and much more technical. We see it as structural engineering. Most brands can buy super foams off the shelf, and then that's the midsole of the shoe done. Very few have the engineering capability to structure the foam based on the sensations we want from the biomechanical insights we just talked about. No other brand can blend their own super foams in their lab, on their R&D site, and combine that with cloud tech. Nearly half of our patent portfolio are different cloud tech innovations. They are not just hoax. This is what gives on-shoes the unique sensation and differentiation. And high-performance engineering comes with an equal responsibility on our planet. Katarina talked about it, one of the Ps. Our goal is to prove that high performance and environmental impact do not have to be in conflict. And this brings me to Clean Cloud, another huge innovation from on. Almost every running mid-sole today is made from petroleum-based EVA foam. In 2019, we asked the ambitious question. In fact, as usual, Olivier asked the ambitious question. What if we could take carbon industrial emissions and capture it and turn it into high-performance foam. We did it, and we announced CleanCloud in 2022. The chemical industry told us it would not be able to scale until 2030. We didn't wait. We built a global supply chain from scratch, converting captured CO2 into E-NAFTA and high-performance EVA pellets. More importantly, we made zero compromises on performance for lower carbon impact. And even more importantly than that, we do this while staying incredibly disciplined in our economics. So when you add this proprietary material innovation, structural engineering, along with extensive durability, acoustic testing for squeaking, premium material selection, highest manufacturing standards, and you see it on the side of our shoes, All this together is what we mean by Swiss engineering in the own context. It's a lot, but it all comes together in one phrase. And a beautiful lock-up as well from Tilo. So, pillar three, light spray. Light spray is not just an automated manufacturing breakthrough. It's one of the lightest and most sustainable upper technologies on the planet today. When we combine our latest cloud technologies, give step change performance improvements, LightSpray just adds on top of that. We have obviously designed the LightSpray shoes, but what most of you do not know is we also designed the robots that make it, because we had to. We hold over 250 patents already across the product and process, and we're so excited how fast is the scaling production. It's scaling fast because we see LightSpray technology already translating into some of our lifestyle products. We're starting to pilot that, and that is the unlock to scale this technology. And we've got a lot of work to do, but we see incredibly great initial signs. It's the fast thing the evolving technology you're on, and we predict it will be 10% of our footwear business. But it's not about the volume that's important. And that's not the reason I love light spray. The reason I love light spray is what it does to technology, the paradigm shift in global supply chains. But the real reason I love light spray is what it represents about us. We can take the most ambitious challenge, we can make it real, even if no manufacturing process exists today, and break through where many others before us have tried and failed. When you combine these three pillars of technology, all of that innovation, with our design philosophy, that is what drives Onn's pricing power. so I'll say it again when you combine all of that technology with a very distinct design language that's what drives our pricing power and I'd like to introduce Thilo our Chief Design Officer who will take you through how we bring the emotion to all of that tech Thilo Thank you Scott I had a lot of fun this morning

Good, I'm glad so you saw a lot of applied design this morning already unfinished products so we're going to take it a bit on the design meta level and i especially welcome again the people i met three years ago so design is consistent it's super important to really build up on the story so what is the function of design at on It is here to show you how innovation feels. And that's an equation I really love. As David said earlier, engineering solves a functional requirement, and design makes this solution desirable. And I like this so much because there is so much in it. In the word engineering, you have innovation, you have credibility, how a product feels physically. And in the word design, you have expression, how a product and therefore a brand feels emotionally. And what in other places might be a reason for a lot of friction internally because people would want to build either a performance or an expression brand. We see this, as I call it, semantic ambiguity as the main contributor to our unique design proposition that we've built now for one and a half decades. I say it for the first time. I will repeat a few times. we design for the and and not the or. But why is this so? I think there's ingredients that play a role, and one of them is our provenance. You see the famous Zurich School of Arts that made the Swiss style that became international style big in the 50s of last century. And the foundation of this is really the rigor and the clarity and the purity with which design was done in Switzerland. With design, it's no different than with engineering. Precision is king, and it runs very deep in the DNA. But next to Swiss rigor, I think there is as well a thing that we love to entitle as modern craft. Modern craft is as important as conceptualizing. And think about design. you have to be able to go and build it. You touched the word on it. Currently, the more people spend time on AI-enhanced digital landscapes, the more I ask people to just go to the workshop and quickly try and do it. And I truly think if you both do in parallel, that's really a superpower. The third ingredient that we love to work with or even define is to design vocabularies. I think a traditional design vocabulary is useful, but it's not what keeps us hungry. And while we keep an eye on the competition, I would say it was never the main source for our inspiration. So while we respect the past of Swiss design, we are the brand of the future, and the languages, the aesthetic expression that we push is the principle we call, or that you know as well from a different context, Maya, most advanced yet acceptable. I think we have never been afraid creating something new that hasn't been out there. And so I think one of the biggest motivations of the design team is to create our own visual and tactile vocabularies for the movement. The tools that we work with currently, they deserve as well a mention. what you see on the left appearing on the big screen this was the reality that's what a sketch looked like a first sketch that we presented at the so-called initial design review which was the first design review in a series of several one in nine months or a year what you see on the right is the images that we now bring along to a first initial design review and this is not photography this is ai enhanced from what we sketch and we line draw in a very very few days so we're not only producing pack shots we're producing editorial images on body we even animate it and incorporate in cooperation with marketing and comms we can imagine campaigns so i'd rather tell you why we do this not only about the advancements that we did Design administration is somewhat the enemy of the beautiful design mind because drawing plans, filling in material sheets, hundreds of color specs, this all takes away actually from creating. And by letting digital tools absorb all of this, we liberate the full capacity of the design teams for really creative work, which for us are defined by exploratory thinking, by judgment, by intuition, by taste, which are all the most human of qualities and not necessarily the forte of AI. So the best designers in the future are needed for the best curation, the most unlikely of combinations, the most illogical but beautiful choices, and for thinking the unthinkable. But now let's get to the result. what does design enable us to do at ON? First of all, we've always had the goal to operate with one design language because we believe, A, in the stretch of the brand, but we always as well believe that we can speak one design language in several dialects and that we can go very far with that and that we don't need a hundred sub-brands. The more that we grow on, the more it becomes recognizable and the more we can build bridges across verticals something which i enjoyed a lot is last week when the rumor kitchen was boiling at its hottest and you could see ai images appear of what perhaps what a football shoe look like or another shoe that we might go after you could say ah the people copy us with ai but what i'm really fascinated is the people are getting it pretty right which means they pretty much understand the design language so the design philosophy unifies but it's not only about the aesthetic language it's as well about implementing the horizontal tech transfer so we've always rejected to just say the best physical product comes at the highest price just for an elite buyer but our goal is always to apply that as horizontally as possible not only aesthetically recognizable but as well really offering the function my very favorite example these days is our lightweight jackets this started in a way where strictly for our athletes trail runners and runners we set out to get two records lightest windbreaker and lightest membrane jacket. We achieved two outstanding pieces that were foreseen as safety gear, mostly for the trail runners, so they can pack it up that size and take it along. But very quickly, this very techy appeal was recognized by buyers far, far into active lifestyle. We've identified this gap, and we very, very deliberately want to be the brand that occupies this gap as we see it, which is defined by technology, material, and a very translucent, lightweight tech appearance. And last but not least, then the third piece is now we really can start to compound. it's about cross-category expansion and this has been very enjoyable I have to say in the very beginning we had to learn so many things in running we had to learn so many things in tennis then when we enter training slowly we could tell ah we have learned something that we can use again and while footwear always remains hyper special at the end I think about the process in design and engineering you can take so many things along and now that we're adding sports so the things that you've seen this morning this all comes very very beautifully together and this is exactly how this design discipline establishes technical credibility all across the board as an example in footwear I would like to give the word back to Scott who shows us how this involves on the road So let's talk about performance running.

As a brand born from running, we're absolutely privileged to be part, right at the epicenter of an ongoing megatrend. The running landscape today is more competitive and faster moving than ever. Global participation is exploding to historic highs. The London Marathon in 2010 had 120,000 applicants. Today, in 2026, it's 1.3 million applicants. If we look at our premium time, for us, we define that above $160, it's outgrowing the broader market, growing to 36% of the $22 billion total running market. We disrupted the industry 16 years ago, and we're accelerating that disruption today. We are taking that proven science, that Swiss engineering, a very disruptive manufacturing, and bringing them together into a franchise architecture that we could build 20 generations of running product upon. So remember, we're only on Surfer 3. Most other brands are on 20. That's what we're building upon. The playbook Olivier pioneered, using innovations to build unique sensations for running, has not changed what is new is how we explain our product architecture to our communities and to our retailers so it truly brings that differentiation to life to make the product choice easier more intuitive we engineer four distinct underfoot sensations pairing specific cloud tech geometries with custom super foams. First, support. Delivered through the franchise Cloud Runner. This builds a runner's confidence measured by core stability. Not by weight or size, by core stability. It uses wider base geometries, asymmetric heel clips, and a cradle-like cloud tech cavity that guides the foot naturally. The second is Soft delivered by CloudSurfer. This focuses on neutral cushioning and smooth effortless transitions. CloudTech phase cavities collapse sequentially paired with surreal super foam for an intuitive heel to toe ride. The third is the CloudMonster. This is designed for high rebound, forward acceleration, and explosive bounce, combining maximalist clouds with responsive foams and an aggressive rocker profile. And the fourth and last is fast, and we've talked about it a lot already, is our Cloud Boom franchise. This is built for maximum propulsion, fatigue resistance in that last 10k, and race to personal bests. Feedback from our customers and key accounts on this new architecture our recent Paris run summit was overwhelmingly positive and not only enables our performance credibility that enables us to really cut through on that shop floor and online we've already substantiated this architecture with two releases so far this year we've talked a lot about it but the cloud surfer 3 it's already launched actually exclusively we run specialty, but officially on October the 1st. This marks the commercial debut of the Surreal Superfoam combined with Cloudtech phase. Surreal is 15% lighter, 20% softer, and 15% more explosive than Helion. In pinnacle racing, the Light Spray Cloud Boomstrike 2 has a brand new cloud tech technology, the cloud tech sphere. 15% lighter and a lightweight 158 grams with the light spray upper. It showed a huge jump and run in the economy and a demand six times more than initial availability. So we're working hard to catch that up. This potent mix of advanced midsole technologies and industry defining light spray upper delivers meaningful performance. That same integrated approach that we've taken to running, clear communication, and simple methodology is exactly what we're now bringing to the apparel range.

And Thilo will talk That's a very nice jacket.

Olivia and I wore the same one.

Okay. Thank you. So I want to start this section with the saying, precision is the silent authority of premiumness i think we have been very encouraged in the past by the fact that a lot of people who ever picked up a piece of on apparel immediately saw and felt the precise make of it we made this an absolute non-negotiable a product brand marker physically but of course beyond its precision of make and function apparel of course is the cultural expressive element which is able to connect all sports two simple points and a very strong view on expression guide us here the first one is not new to you so i'm keeping it short we view the athlete as a single integrated performance system and we want to deliver toe-to-head confidence and emotional connection precise to the tenth of a millimeter no matter what piece everything said i think what you saw this morning was hopefully not what you knew and expected, but you do know our performance expression that we've been building for years. Secondly, we've invested really a lot into materials and material innovation. As in footwear, we believe that materials and therefore technology and materials are going to be even more defining for design than they already are. They are the base on which every expression is built, and this is exactly where we've come a long way what franchises are in product portfolios technology brands can be to material innovation it's a purposeful intentional compass on what to focus on both for us internally when we built and for the customer externally to find guidance we therefore built out to material technology families one is about functional technologies engineered performance and climate utility in there we have dry tech which is a two-directional moisture wicking and rapid evaporative cooling technology we have thermatech which is a high loft low weight insulation and we have gar tech our own system of waterproofs and breathable membranes on the other hand we have a material technology family which is more on the side of tactile sensory experience and of adaptive fit we named it sense tech which is a family of velvety next to skin touch that prevents cling when wet for distraction free movement and we have form tech high power elastic recovery and adaptive body sculpting it's way more you know than rationalizing about material sense tech for example has been one of the most successful pathways to bring more female athletes to own. And after now the foundation of those two logical points, here comes a bit my emotional closing speech about expression. Everywhere, but I think especially in apparel, we just refuse to play in the sea of sameness. And we very deliberately want to be a brand of the ant. Easy to remember. I put up this picture here because on the left, I think, is what people know from a high-performance context. On the right is what we think is the expression of a contemporary sportswear brand into active lifestyle. And you've seen many of the pieces and their expression with a very strong focus on her this morning. It all comes back to the end. remember that in the very beginning it was the soft landing and the hard push off and today we still reject very deliberately design and everywhere else to be a monodimensional brand we design for the and and we're not doing it in a way where we're all over the place but we do it so very very deliberate deliberately a recent industry feature which you might have read placed on squarely between mass athletic wear and luxury auto wear and we loved it we believe that we both have the brand and the design team that can take the stretch and that can create the perfect product for an active time while we maintain from the beginning design wise the rigor to execute on it these principles that i just told you about they give us the clarity and the confidence to explore many facets of sportswear, many, many more. And we don't dilute our design equity with it. Remember, we speak one language, different dialects, everybody gets its one brand. And this might be the difference, really, to others, because if we did not challenge the aesthetic status quo, if we did not connect the dots in the most unexpected ways, and if we did not rely on human intuition, then perhaps others and even AI could do it Olli do you want to close us out?

Thank you Tilo happy to I saw two labs stop closing as soon as I stood up I don't know about the impression I left you can leave it open but still you don't need to take any note it takes 45 seconds to close isn't that amazing what all started in this little kitchen in my small village. I mean, I'm really getting emotional. I never thought that we could become a company, and I'm sure nor David, Casper, or anyone that joined us truly believed what we see, what it had become nowadays. And what you have witnessed firsthand in our makerspace, you know, from material science at our foam competence center to the automated robotics of light spray and from podiums at the lead running to technical textiles, every single breakthrough, and it's every single breakthrough, reflects one relentless drive to reset the industry's benchmark. And that's our reason for being here. And now, not only looking at you, also myself, and looking at my two co-founder friends, I think it's time for a break. It's seven minutes to ten in the U.S. I think it's time for the second, third, or fourth coffee, for all of us to stretch a little bit, to use the washroom. Hey, use that time. Again, whatever you need to do, we give you 20 minutes, so that means let's gather back at a quarter past four o'clock our time thank you everyone and we truly appreciate your presence today and your attention to our story thank you so much there's a few stragglers to make their way back please have a seat we're in we're in the tough

slot after the coffee yeah um i'm alex um i'm not sure whether i should apologize for being responsible for marketing or to or to praise it based on number of questions i've had today and yesterday i think we're on the edge somewhere my name is gerald if you have any caller recommendations for the products i'm your guy i'm the chief product officer thank you so we're here for the next four and a half hours to speak about product and marketing just checking everyone's still awake the classic gag um but hey gerald and i actually represent two incredible forces are on two incredible teams that work on product and also on marketing what does that do together it creates a brand so amongst our very busy schedules of meetings throughout the day our teams are working incredibly hard on on forging that brand because as scott said earlier when a consumer comes to our brand for the first time and maybe comes back for a second and hopefully a third and fourth they're feeling the brand they don't feel a functions they don't feel all the ins and outs of our day-to-day, they feel something hopefully very special. And that is really that killer combination that we work on every single day. And what does that mean? What's the result of that? That, of course, increases our TAN. It's the overall addressable market that we want to increase.

And in product, you heard it before, we slice and dice that addressable market in what we call community mindsets. We have 14 community mindsets that we build, and through our innovation pipeline and through product sensations, we make sure that we can satisfy those community mindsets altogether. That starts with the peak performer in running and goes now all the way to a premium active mindset when we talk to her in apparel.

But that leads to a pretty big question and I've heard it a few times today and yesterday. It's how do we stay true to who we are as we grow? It's a very clear question, relatively complex question, but the answer actually sometimes is quite simple. We stay very true to who we are by focusing on innovation. This is not just in the product space. It's pretty much in everything that we do. You saw we went to market last week in the biggest sport on the planet. Our approach was very unconventional. It was very different to how other brands would approach that. And that's really, if there was a secret sauce of on, it would be something in this approach of saying, this is how others do it. This is how we're going to do it. We want to be different. We want to approach it in a very unique way. So the role of our brand within the premium playbook is hopefully very clear we start from a point of view of authenticity you've seen this slide earlier from david and casper it shows some of our best partners that we're currently working with there's a lot more behind the scenes as well what i can add a little bit more flavor onto this this picture is that when we work with these partners they're not just a face for hire they come to our brand we sit often around their kitchen table or somewhere when they come to on labs in in our spaces and we talk about what are the things that we really find important together. It's actually more like a slight sibling relationship, you know, from brothers and sisters. They tell you when you're doing good and weekly when you're doing bad. Sometimes it's hard to hear, but the reality is that all of these partners, they spend time with us at ON. Zendaya, a few months ago, she came, looked through the entire collection. We had about 10 or 15 different versions of yoga tights for her to try and sample. She was giving us extremely direct, clear feedback. Roger in the same breath. People often think, hey, does he really come to on does he spend his time here he actually does he has a parking space he does have a real badge he comes here he tries product he tells us what he thinks it improves everything for us what we know from all of this is through adoption adoption that we that we buy does not compound adoption that we earn that does that's the engine that keeps all of this brand actually running and we're building at the same time in a pretty new and different environment and when I was on stage three years ago, we were talking about this emergence of this thing called AI. Now we're living and breathing this all day and absolutely every day. And to be honest, this has radically changed the way that we go to market and the way that we tell stories, the way that we capture demand. So in this space, it's a real shift in the marketing playbook. And it's meant that whilst media spend absolutely still matters, it's not the driving factor around how we're going to go and build this brand. You see from the examples on the screen, when we go to market, when we tell last stories in the most authentic way through entertainment, through storytelling, through things that really capture attention in an entertainment space, this is where the media power becomes even more important. So when we're all scanning on our phones, going through the feed, what is the thing that you stop and you engage with? Is it an ad in the classic sense? I think now, especially with younger generations, they are extremely in tune to when they're being classically marketed to. They want to be entertained. They want to feel authenticity. They want things that stop that thumb, help them to engage and hopefully help them to come back over time. So as a brand that believes in innovation and in creativity, that's great for us because we're very well placed to tell more of those kind of stories. We want to work with the algorithm, not against it, and it is very fast evolving space. This means that we can be pretty rapid, we can test and learn. I've spoken at length over the last couple of days about how AI plays a role, not necessarily in the things that we create, but how we test and learn over what we create. This is just an amazing opportunity for us to be different. So we want to give you a slight look back over what we've done over the last three years. When I was here last time, the buzzword was communities back then. At the core, it has always been run. It will always be run. This is the absolute epicentre of the brand. But back through 2023, we spoke about how the emergence of a couple of new core sports, we had tennis, We had training that was amplifying out to a few more communities that we were reaching. And you heard earlier, what has that hard work achieved of building the brand? This has increased overall by 2.5%, which is fantastic. And what we actually promised back then was that we would be at over 30%. I'm very happy to say that all of that hard work has now achieved that. Now, in the performance space, actually one of the questions I've had over the last few days has been around our athlete approach. We are not a scattergun brand. We do not go out and bring on endless number of athletes, endless number of partners. We are extremely selective. We're very precise in who we bring to this brand. We make sure that we see eye to eye, as I mentioned earlier. The things that they care about are the things that we care about. When we forge that partnership, that's when the magic really happens. So you can see here that this is back in European Championships just last year. we only had 3.4% of the athlete quota that got to the start line. That equated to 10.7% of the medals. So a precise formula that gets us from people that want to work with us, that feel credible, give us incredible feedback like brothers and sisters, and then we go and create the products that they need to perform. Switching gears from performance and into the more lifestyle space, we have someone relatively well-known called Zendaya, one of the best actors on the planet. and we select partners like this to help us to amplify the brand overall. So major moments with people like Zendaya, we had an incredible Super Bowl advert where we put Roger Federer and Elmo together to not necessarily the partners you imagine going together on Super Bowl, but we created entertainment, we created cultural moments, we created these elements and these moments where consumers really interact with us as a brand and they start to understand what we actually stand for. So this is really the power. With this film, this recent spot that we created with Spike Jones, Emmy Award-winning director with Zendaya, we crashed every benchmark possible. We had 87 seconds of average user viewing time. That's on a three-minute film, which is pretty exemplary. Our partners at YouTube, Google, or somewhere in the audience, they tell us that this crashed through every benchmark that they had. And the ultimate goal of that was a 730% brand lift. So it's really putting the playbook at work. Great partners, great entertainment pieces, tell the story of product. This equates to our overall grand growth. Another great example of this is how we take from performance all the way to what we call expression and lifestyle. So you heard earlier around the Cloud Surfer 3, an incredible product that's coming to many feats of runners in the coming months. This actually started very much in the lab. It was around the creation of Cloud Tech phase. So think of this in the lab. You see on the picture on the left-hand side, engineers working on perfecting the exact version of Cloud Tech phase. How is this going to compress to create the soft landing and firm push-off that we have back in the garden hose from the early days? And that was really the nucleus of the idea. But then fast forward a couple of years, we took that through to one of our best partners, Loewe, one of the hottest fashion brands on the planet. They picked that up and said, hey, that's just an incredibly looking technology and design. So we took that to a fashion market for the very first time. And now we see that going all the way through to a more expressive version with the Cloudtip Remix, which is now one of the hottest sneakers with our European partners in the top three, actually, of the best-selling sneakers. So performance, relevance, expression, back to the playbook is how everything starts with performance. Consumers really want it, but we can take it all the way through to lifestyle. I think another great thing with this is that we've mentioned it before. We don't have an archive. We can't go down into the dusty dust bins in the basement. and pick out something from decades before. But what we know from consumers is that other brands can do that. They want newness. They want innovation. They want freshness. They're actually pretty hungry for a brand like us to come along with something very, very different. We were on the streets of Marseille just this year, and we start to see the nucleus of consumers putting this on their feet. We see groups of six or ten friends together, and there's one or two on's. This didn't happen a couple of years ago. These are really the green shoots of what we see from the future. so that awareness development that i mentioned earlier um back in 2023 we were around the 12 percent we put a lot of effort into growing that brand back then we were in this cohort what we called the run peers so we were kind of hanging out we were emerging brand on hot on the towels of some of our competitors but we've seen through that growth within brand awareness we now get to above 30 percent and that really is now the headroom that we have because the brands on the left hand side which are a little bit longer in the tooth than us been around for a few more decades. They're more in the lifestyle space. They have more categories to play in. You saw it with the emergence of football just over the weekend. This is now the permission that we believe we have as a brand, the opportunity, the growth that we have to go after ever more fans. David mentioned over the weekend, you know, we're just talking about three days here. We had 50%, over 50% of the awareness share of the voice of people talking about as a brand. Was it 8 billion? Was it 80 billion, I think we will have our eyes somewhere on the future. Three days of 8 billion, I think we're quite happy. We'll take 80 billion in the years to come. So we mentioned the 30%. Now that obviously grows. We set our target of over 50%. I think we're absolutely going to smash that when we come back in a few years time. We're still at the core, core sports, new sports, as we now mentioned, and then broadening out into lifestyle and culture. It's not a compromise, as I said earlier consumers are very hungry for innovation they actually want to know how cloud tech works and the next step of course is how does it feel how does it look are the colors is it my size all those things are obviously extremely important but we set that target very precisely and with the new sports we feel that that's that's fully achievable so unsurprisingly when you look at when you break down that that 30 that we're currently at running being our core is is the largest at 40%. With the female consumer, with women, we're at roughly 30%. Non-runners and the younger age range is a bit lower. So don't look at this as a negative thing. We see this as opportunity. We have just one sneaker that we feel is we can stand behind as the sneaker of the moment. We're going to add many more franchises over the future. We're adding apparel, we're adding new sports so fueling these these awareness engines is fully in our grasp and something we can get after with our with our premium playbook so that brings us to what we would call a confidence framework because of course if the consumer wants to feel the brand and wants to hopefully fall in love with the brand they should have some confidence that we're doing some great things as Scott and everyone has mentioned we put the consumer at the heart of absolutely everything that we do and we feel that when we have these six signals working extremely powerfully that's when the consumer has the most confidence with us as a brand and it starts of course with gerald in product experience with product experience yes and scott tilo olivia

talked a lot about product experience so i think just in a nutshell as i hold a bottle of water what we're trying to do is to really give consumers 10 extra the 10 you speak about the 10 percent of that experience where you go to your peers to people in the gym to people on a run route and you say have you seen this have you felt this so we will always do the hundred pretend 100 job but we also want to leave that little extra that gives you the confidence on the product experience to bring everyone else along and the athletes and cultural relationships as i mentioned

are a key element of that process. We turned up in Copenhagen just last weekend, absolutely smashed it with incredible athlete results, with product that we turned around, with light spray, actually an incredibly fast time. We know that when more people talk about our brand, when they enthuse about our brand, that's when the magic happens, and that leads them into the retail space.

Which, for us, was so crucial to break through in apparel and accessories. And if you look at how we now really build toe-to-head, our own retail is the perfect expression of that. Alice and Rebecca are going to speak a little bit more about how we build now beyond the 80 stores that we have. Our own retail is where our confidence is expressed at its best.

I think we spent quite a lot of years, us, the brand, speaking to the consumer. I think that was very important in the early years, those first formation moments. So a lot of us expanding to technology, what we stand for as a brand, almost introducing ourselves with a handshake. I think what we now know is that putting the voice in peer and social proof is ever more important. So you'll see a lot more people speaking about on through their voice in now and in the future. It's something that we're focused on a lot in the coming years because, hey, if someone recommends you as a brand, that's often more powerful than the brand speaking for itself. So we've had the early days of when someone would see a shoe and say, hey, what is that? And hopefully they would tell a very good story. Now we know through the digital media and the algorithm is that we have to have more people amplifying our brand, more people talking about the great things that we're doing.

Which in the premium playbook that we heard in the keynote makes this demand generation opportunity much more precise. and if you look at where we place content and how we make media bets, we can be extremely concise and precise in our execution.

Alice and Rebecca who are up next will talk a lot about the experience, particularly in the digital space. We know now more than ever when we're trying to find a brand, are you going to ChatGPT, are you going to a lot more people going to Google still or some of the other spaces. Our digital space is really where a consumer can feel everything from us as a brand you've experienced lots of new things in the spaces today but our digital space is really that that global flagship digital experience which has to be the absolute pinnacle of when you come to to experience the brand so we're going to go through the engines um you heard the three core engines earlier run sneaker and apparel um we've added a fourth one cheekily to the right hand side because there's always room for for one more um and we're gonna we're going to give you a bit more insights into how we look at this. So we'll start with Run. You heard earlier the incredible amount of effort that's going into our core Run franchises and how we're going to double down on bringing those best sensations to the world. There's really three core things that we look at when we try to amplify our Run story. We want to be there with Run culture. It's something that has emerged over the last number of years. What that simply means is being at the places where runners are speaking to them in a way that connects with them so whether that's turning up at the best running routes of the planet being at the most incredible events that we can put on or infusing about that with athletes that's really the focus of our run culture work I mentioned athletes we leverage them we believe that the precise nature of how we bring these athletes on board having them talk about what we do and then obviously put the put the money where the mouth is and put it on the track, that's where the magic really happens. And then the third of that, third portion of that is about the right experiences. So the very best product experience, walking into our stores, immediately understanding the differences between our franchises, having an incredible conversation with the sales assistant, going onto our website and being able to just do a shoe finder to find that very best product. This is where we will put our efforts within the run space.

And you heard it from Scott, Cloud Tech can now do it all. So we want to make it extra simple for our consumers to understand where they should find their home with us. We have four product brands that we build in running across the four sensations that we strongly believe in. And then we add extra sensations within those four product brands. So if you think about a cloud monster where we now bring a trail running shoe within that franchise, it's very clear that through cloud tech engineering and our high perform approach and how we put those two things together, you're going to get great energy return even if you go off for a trail run. And across all of those franchises, of course, Light Spray is coming to life as our pinnacle technology. And we'll make sure that from a strong retail partner all the way to our homes in D2C, you're going to be very easy and clear to understand where your home is, depending on your style of running.

Sneaker, next big area. So as I mentioned earlier, we've made some early, really big steps with the Cloud Tilt, which we're all very happy about. The younger audience is starting to take notice of us. We're disrupting in a space which is pretty much ripe for innovation. From the shoe room, the footwear room that you saw downstairs, the lineup is incredible. Again, with our partners, they give us a lot of feedback. We're very happy to take that. We want to work in combination with them to bring the right products to their consumer in a very authentic way. But again, we want to be different. We don't want to be just like everyone else, so we're very precise on what we do. With our kids and youth space, actually it's only 5% of the current footwear business. So a lot of headroom there at the same time.

And I really love this chart because we can build lifestyle through different lenses now with adding football to the mix. So we will always have a very strong lineup when it comes to what is born and run. And if you look at the Cloud Swift, the Cloud Monster, and the Cloud Tilt, this is all true running technology that we now translate with our core partners in the sneaker space and give that more options more materials more color so that you can renew your inventory every other season we're also very proud to continue the journey obviously with roger and what was born in tennis and as we open up also having a letter in our portfolio we're renewing the clubhouse as our center point of the sneaker strategy for what we call born in tennis and then last but not least and I think that is a very important point and just the first glimpse of how we will translate what we built on the pitch to off the pitch we know that is incredibly important and we have a lot of great ideas and we will very early in 2027 start to go off pitch in football as well and I can't wait to show you what that's gonna look like there's a little example from last weekend just to give you a little bit more color on the sneaker strategy this is the latest release with it with our friends at kith in New York and Ronnie's now for a couple of years edited several of our sneakers in the main focus point for this drop was the cloud Swift but also the cloud zone where we look at how we can bring energy the same as Alex spoke about with Loewe previously through our sneaker franchises with a kiss run club who will be now New York LA Tokyo and Seoul running in these products every week and at the same time then translating that towards an inline business for us as we go in spring 27 and build a bigger business behind the cloud swift kids you mentioned they're not just cute the very little ones on top there but they're also absolutely true product integrity follow true that is super important to us so we always say it's from zero to 99 now and we want to make sure that we really execute at the highest level from the toddlers all the way to the kids to the to the youth and then to the adults you'll be able to get full product franchises from us and we're super super proud to bring the very little ones into something comfy and something very good looking as well so with apparel we build from her again when we speak to consumers which we've done a lot of over the over over the last year within apparel we hear from her that she actually does sports a lot the interesting point is we've heard

from consumers that we actually don't do sport that much and then when you hear how their day actually looks you realize they do sport a lot it's extremely integral to what they do but they don't want to be defined by that look i think there's other looks from the past which are the the sporty girl the sporty look and what we know from these consumers they definitely want the functionality they want the performance and the materials but they want to style it in a slightly different way so everything that you've seen from the product presentations has been about elevating that look starting that look in a very different way and we feel that's something that that the next generation of consumer is very keen for.

I want to keep this very brief at product strategy and our three pillars. We're not going to slow down and dedicate it. And for those in the room you've seen this morning in the fashion show, there's a lot of great things that you can run in, look great. We have a lot of material innovations coming. Tilo spoke about that. So we're going to double down on that and make sure that we have that peak performer mindset that represent it continuously in a dedicated space for all the sports that we do. When it comes to the second pillar, it's what we call the essentials. We want to take the best materials that we've built and the most mainstream, can I say that? You said it. Yeah, the most mainstream silhouettes to as many people as we can. So we build an essentials range together with our creative team that should capture a huge market out there with our best materials, our greatest silhouettes, and a very easy to style look. And then last but not least, the one thing that we're all so excited about is how we build our foray into Premium Active. How we take a more natural approach to materials, how we look at the silhouettes all together and make sure they transition well from a more workout or gym space all the way through your everyday. And how we innovate a lightweight jacket together with a pant so that we can represent her in her true self with the ideas that we bring in Premium Active.

So we sneakily add the last fourth engine with football. We're three days in, so there's not too much to report. You've heard some of the fantastic numbers that we're very happy with. I think overall how we see football is not just a new engine. It's not a completely separate one. We know that a lot of the consumers or the customers we already speak to in those other three engines, they care a lot about football. And we see from the very first days that actually that audience is very connected to those other spaces. They're already asking what people like Kylian Mbappe is wearing when he turns up at a training ground. He's decked out in, you guessed it, on a power and footwear, not just from the football space, but from the lifestyle space. So this just shows how that engine is going to really be a superpower for the other spaces that we have.

Actually decked out in on essentials. There you go. We have three incredible athletes that we partner with, and we spoke a lot about how the athlete is at the core of how we develop. So with Sydney, Thierry, and Kilian, we've really found great partners, or siblings as you called them, and they're in the lab, and they're working on pitch, off pitch, all together, and we want to make sure that we create that full sport through ON's DNA, and that we have our own take in that sport. And that actually started last week. This is one of our prototypes that Kylian wore in one of the trainings last week. And we're tinkering back and forth. There's a lot of little details, a little thing here, a little thing there. But I can guarantee you, this is going to be the best football shoe that was ever made. That's a promise. Yeah, it's okay. We'll take it.

We can do that. So those are the four core engines. Three clearly the biggest, the biggest focus that we have. And over the coming years, you're going to see how football comes to life in a more meaningful way. So just as a reminder, we actually probably should have added a fifth circle around football. I would have been interested to see what the global brand awareness would have been today. But it just shows how we can keep adding these different engines. We can keep adding these different awareness drivers. Overall, that's going to supercharge us up to 50% and above. And that's just the future, the ride that we're all together on now.

So, with that, please bear with us. We're going to set up for a panel. We'll close. Brandon community, thank you very much. All right. I wasn't gone too long. I hope you didn't get bored. This is going to be fabulous. That's all I'm going to say. But we're going to watch a video first. Ladies and gentlemen, please welcome to Absolute Legends, Roger Federer and Thierry Henry. I hope they're happy with us that we're sitting in the wrong order.

Oh, we're sitting in the wrong order? You got us some seats. I saw that you guys were standing. I was like, I hope we're going to have some seats.

It's comfy, no? Yeah, very comfy. Roger, let's start this off with how often you're here. People sometimes don't believe it. We know your dog's name. I still don't know the breed. That's fine. You know more or less every team member's name, and you welcome them, and you're here. You're humble. You just love it, but we actually output a lot.

How do you do it? you come in every day and you're like easy peasy or how do you get your motivation to come in and create product together with us i mean it's great to be always at headquarters here in zurich and you know i try to come in as much as i can i think the beginning of the relationship partnership and then friendship as well was very important you know when well unfortunately through covid and my knee problems that i had actually had a lot of time working on product getting to know the team and actually getting to know the brand and obviously the founders and became friends and it was amazing and then of course you know because it's just so close to home i can always pop in for just a quick lunch or a coffee or just catch up with the either the roger franchise team or the tennis team or marketing team or whatever it is so i try to come obviously as much as i can i'm also very busy traveling the road a lot but it's been it's been an amazing journey so far uh very happy that the way we got going and announced a partnership to the world and now welcoming you know thierry and football to on is a dream come true for me personally because I know Thierry since a long time and call him a friend as well so it's so cool to be doing things again together it's a an absolute dream come true and it's good to see also Thierry at HQ it's fantastic is it just him why you chose on or you could have worked with any other brand in the world why did you choose us to build together the vision about the innovation where the game was going to go, the impact that we wanted to have.

I mean, we talked about it a tiny bit before throughout the whole day, you know, it started in this building where we had a meeting and you guys talked to me about the vision that you were going to take and I wanted to be part of that first and foremost because of the relationship that we're going to have with the athlete that we need to have in terms of our clothes we're going to work on the on the on the on the product and the boots and obviously the impact that uh i can have that you can have and everybody involved and mainly the the athlete but also um the impact that we can have on women's football which is uh important on how we can develop a boot specifically made for for for a woman which is that very important for a very long time uh women footballers have to wear men men men boots which i don't think is is is normal so So all of that, and I mean, we were talking about it with Roger earlier. I do think that the game, the brand, whatever game it is, it's just limitless in terms of where you can go and how far you can go. I'm sure Roger had the same kind of attitude when he was a player. You're always learning and seeing where you can go, and that's where i see us going learning every every day and trying to be the best version that you can be when you came in a year ago we put all the team in a room and was like one two three four big ideas and we have an immediate collision of big ideas and innovation did you think of that for a long time creating product together that was always sort of in your back pocket no it's It's not so much about creating products, you have a vision of how the game should be and how you should go about it and what you want to bring back or not. And I mean, you're talking about in the first meeting that we had, obviously people were talking about different ideas. You had one, I had a couple, maybe more than a couple. But then does it work, does it not work, where do we go with that? But we all know that diamond comes from pressure. And so you need to be able to push people to a certain way on what they can achieve. Even that doesn't happen by relaxing and not having ideas and not coming together and sometimes argue about it and it's just normal. But, you know, I will take the time quickly to thank everybody because to be able to, and I said earlier, but I will say it again, to be able to create something so quick in what we were thinking of when we were in that room, to be able to impress Sidney, Killian, and everybody is just outstanding. So, you know, I had ideas, but like I said, I was sleeping at nine and those guys were not sleeping so much and pressure was there, but that's just how it goes.

Talks a lot to the athletes' respect, right, that we have as a center of gravitas almost.

Roger, I mean, we were almost at the end or towards the end when we started working together and then we were able to attract a lot of young athletes through that. how do you define that kind of athlete's mindset when you bring it in and you work on product or the athlete respect in that sense yeah i mean like that was obviously a very interesting um learning curve for me as well at the back end of my career um you know to then start basically the tennis division here at on and trying to understand who could be a good fit to the brand um how do we well, design a shoe with Olivier, which has been a very cool and fun journey, stressful at times, but we made it work. We even started before we even had a deal and made it in time three days before my comeback in Doha, and that was obviously super special, but I think it's very important to make the athletes feel very special because everybody has a unique character. They all want to shine in their own right and i think it's the difficult difficulty in for us to make that happen that they feel are being seen and listened to and they all have some input like killing now you know with his boots and me with my shoes in the beginning or iga when she tried to move into into her shoot these are like really fun challenges can be stressful at times but But coming from an athlete's perspective, some guys are just super chill. They're like, give me whatever you want. And some others, they tinker for life, you know, and it never stops. So I think this is where we need to have strong teams in place that can speak to them, build product for them, but also sometimes mentally calm everybody down that we will get to it, you know, eventually. And it's just we need to also play the long game and understand some things just take time as well. They also executed on your golf shoe briefing, right? Yes, I'm wearing the golf shoe, very excited, you know, about my new sport. Yeah, retirement is good. You should try it out, by the way. Gives you more time to play golf. And obviously, I'm very excited to see that we have officially moved into golf. and I think we can maybe also use the blueprint from tennis when it comes to golf, because football is very different in my opinion, even though that's the sport I used to play and then chose tennis over football, and now I'm into golf, and it's a very exciting sport, very demanding technically and mentally demanding and challenging, so I love the shoe, really comfortable, it's great, and I'm looking forward to everything that's to come. on a product integrity lens right where we spend a lot of time is it's beautiful to see now those

overlaps obviously your input also into training and how we think about lateral movement how we take what we learned in tennis we apply to training you being also on many different fronts what is important for you terry when you think about this is a product and you've been wearing our stuff now, please be critical. What excites you? What is that premium playbook that we spoke about all day for you, in your mind?

Well, you know, I always say that when something is good, something is good, people don't mind to go to where they need to go to read at premium price, or anything that's premium. That's the start, but I'll go back to what you just said. Yes, people will say, obviously, I'm saying that because I'm part of the team but generally I do exercise a lot. I don't know if a lot of people follow me or not but I do exercise a lot. A lot. A lot yeah he knows. Look at the shoulders. I do and I do wear the product and it feels great in all fairness. Whether it's running, lifting, or heat sessions. No I do wear it and it does feel comfortable to obviously to wear where it's first hand, but to go back to the point of reaching that proximity with the players, it's always great when, if you're an athlete and you reach a certain level, I mean, the level, and some of us try to emulate what it did in our own sports, but you want to be seen. People don't understand that with athletes, although you play in front of a lot of people, people might see, but sometimes on a human level, you want to be seen, you want to be heard, you want to be part of the conversation, you want to be like, can I at one point, I mean, if you talk about Roger or even me in my game, you reach a level where you're like, okay, I think I've done enough to be part of someone's conversation in terms of what can be achieved into creating something that I'm going to perform in, by the way. So, yeah, it is important being seen. I'm going to repeat what Roger just said and being heard. But yes, so far, I have to say in terms of what I'm using in the gym is good enough, so I don't have to be too critical. And Roger's tennis shoes, they're good for your tennis? Yeah, you know what? They don't make me play better because I'm not that great. But I move better. That's for sure.

That's for sure. He's a very good mover, makes no mistakes, and I was very impressed when I saw... I saw like Terry play, but it's been a while ago, so I don't know if you're rusty or better. I will have to check it out. I'm actually better.

You want to judge his football? Sorry? You want to judge his football?

No, no. Did you see what he did? But this guy is not normal because he's like... No, you're not. It's just that we took I mean we you met normally I mean the difficult look normal that's your issue that's on you but you know he's not normal I told him to do something he did it three to four times or whatever it is and he did it like who does that like you keep like I wouldn't be able to if he says to me take the racket do that and then play it along or across the courts or whatever that that would never go across the court straight away, whatever gesture it is. And he did that straight away. So, I mean, but we already know how his brain function. Actually, we don't, but anyway, we don't, we don't.

There's a very fun one where within 11 days you won the Champions League and this guy won his Roland Garros title.

We both chased that. Yeah, for a very long time. That's for sure. It's kind of weird. You said that we actually never realized that. So 11 days apart, my first Champions League and only Champions League. And the same with Roland Garros. Only Roland Garros, yeah. Well, I mean, the rest you won 20 billion tournaments, but yeah. Still you won.

Smells like 11 days capsule that we should probably do together.

Yeah, maybe. Why not or something?

Yeah, we're going to have fun. It's going to be good times.

Looking forward to spending more time and creating. yeah or redo one of the workouts we used to do on holiday oh yeah he went oh yeah nope i i just want to close it with one last thing i think which is kind of the spirit you bring in and we talk a lot about culture but the way i think