7/26/2019 BL Salomon

1/3

Good profit margin in the ski market withpotential for further cost reduction

13.0% Typical profit margin for the ski market

17.5% Wholesale/distribution cost

19.5% Manufacturing cost

50.0% Retailers margin

100.0% Retail price

Profit margin is above Salomons typical margin of ! in ski boots and bindings

"tili#ing Salomons wide distribution and retail power$ further margin improvement canbe derived from reduction in distribution and retailers margin

7/26/2019 BL Salomon

2/3

Ski market is maturing but with potential formarket cultivation due to low penetrationratio and trend towards mass leisure sport

Market %% million skiers worldwide in &'($ with )* million inWestern +urope$ &, million in -apan and million in "S

Global value at ..0% billion is bigger than ..)0% billion ofski boots markets and ..,0* billion of bindings market

Market is maturing in Western +urope and -apan$ but

growing in "S0 1n addition$ all players registered growth insales from &'%/&'2 to &'2/&'(

Growthdriers

3ow penetration ratio such as in "S 45,!6 vs0 0! in-apan implies further space for market e7pansion

Ski trends

Skiing is becoming more affordable 8 accessible

Skiing is no longer a competitive sport domain butbecoming a leisure activities

Skiing is infused with fashion trends and rived withconsumer9led modification

7/26/2019 BL Salomon

3/3

Ski market is highly fragmented$ indicatingentry opportunity for an established wintergears company like Salomon

:igh +nd3ow +nd

3ocal

Global

Rossignol

+lan :ead

;tomic