This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation contains forward-looking statements within the meaning of the federal securities laws regarding Columbia Sportswear Company’s business opportunities and anticipated results of operations. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “likely,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Unless the context indicates otherwise, the terms "we," "us," "our," "the Company," and "Columbia" refer to Columbia Sportswear Company, together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest. The Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties include those relating to the impact of the COVID-19 pandemic on our operations; economic conditions, including inflationary pressures; supply chain disruptions, constraints and expenses; labor shortages; changes in consumer behavior and confidence; as well as geopolitical tensions. The Company cautions that forward-looking statements are inherently less reliable than historical information. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. Nothing in this presentation should be regarded as a representation by any person that the forward- looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake any duty to update any of the forward- looking statements after the date of this document to conform the forward-looking statements to actual results or to changes in our expectations. FORWARD- LOOKING STATEMENTS
REFERENCES TO NON-GAAP FINANCIAL INFORMATION GLOSSARY OF PRESENTATION TERMINOLOGY DTC DTC.com DTC B&M y/y U.S. LAAP EMEA SG&A EPS bps direct-to-consumer DTC e-commerce DTC brick & mortar year-over-year United States Latin America and Asia Pacific Europe, Middle East and Africa selling, general & administrative earnings per share basis points “+” or “up” “-” or “down” LSD% MSD% HSD% LDD% low-20% mid-30% high-40% increased decreased low-single-digit percent mid-single-digit percent high-single-digit percent low-double-digit percent low-twenties percent mid-thirties percent high-forties percent “$##M” “$##B” c.c. M&A FX ~ H1 Q1 in millions of U.S. dollars in billions of U.S. dollars constant-currency mergers & acquisitions foreign exchange approximately first half first quarter Free cash flow is a non-GAAP financial measure. Free cash flow is calculated by reducing net cash flow provided by operating activities by capital expenditures. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Non-GAAP financial measures, including free cash flow, should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP in the back of this presentation in the “Free Cash Flow Reconciliation” slide. The non-GAAP financial measures and constant-currency information presented may not be comparable to similarly titled measures reported by other companies.
THE HISTORY OF CSC VIDEO VIDEO PLAYING AT LIVE EVENT PRESENTATIONS WILL RESUME SHORTLY
C H A I R M A N , P R E S I D E N T & C H I E F E X E C U T I V E O F F I C E R TIM BOYLE
GLOBAL ADDRESSABLE MARKET OUTDOOR $40B Outdoor Source: Euromonitor, NPD, public company filings, Columbia Sportswear Company estimates
GLOBAL ADDRESSABLE MARKET OUTDOOR $40B ACTIVEWEAR $160B Activewear Source: Fortune Business, MarketWatch, public company filings, Columbia Sportswear Company estimates (excludes athletic brands)
GLOBAL ADDRESSABLE MARKET OUTDOOR $40B ACTIVEWEAR $1.5T TOTAL APPAREL & FOOTWEAR $160B Total Apparel & Footwear Source: Statista
STRATEGIC PRIORITIES ACCELERATE PROFITABLE GROWTH DRIVE BRAND ENGAGEMENT ENHANCE CONSUMER EXPERIENCES AMPLIFY MARKETPLACE EXCELLENCE EMPOWER TALENT THAT IS DRIVEN BY OUR CORE VALUES CREATE ICONIC PRODUCTS
DIFFERENTIATED, FUNCTIONAL AND INNOVATIVE CREATE ICONIC PRODUCTS INCREASED, FOCUSED DEMAND CREATION INVESTMENTS
DRIVE BRAND ENGAGEMENT INCREASED, FOCUSED DEMAND CREATION INVESTMENTSDIFFERENTIATED, FUNCTIONAL AND INNOVATIVE ENHANCE CONSUMER EXPERIENCES INVEST IN CAPABILITIES TO DELIGHT AND RETAIN CONSUMERS
ENHANCE CONSUMER EXPERIENCES INVEST IN CAPABILITIES TO DELIGHT AND RETAIN CONSUMERSINCREASED, FOCUSED DEMAND CREATION INVESTMENTS AMPLIFY MARKETPLACE EXCELLENCE
AMPLIFY MARKETPLACE EXCELLENCE DIGITALLY LED, OMNI-CHANNEL, GLOBAL ENHANCE CONSUMER EXPERIENCES INVEST IN CAPABILITIES TO DELIGHT AND RETAIN CONSUMERS EMPOWER TALENT THAT IS DRIVEN BY OUR CORE VALUES
EMPOWER TALENT THAT IS DRIVEN BY OUR CORE VALUES THROUGH A DIVERSE AND INCLUSIVE WORKFORCE AMPLIFY MARKETPLACE EXCELLENCE
CORE VALUES COMPETE TO WIN RELENTLESS IMPROVEMENT CULTURE OF HONESTY, RESPECT & TRUST DO THE RIGHT THING
DO THE RIGHT THING
9% 3 Y E A R C A G R 11%T O 2022 — 2025 NET SALES GROWTH
COLUMBIA BRAND MISSION VIDEO VIDEO PLAYING AT LIVE EVENT PRESENTATIONS WILL RESUME SHORTLY
E X E C U T I V E V I C E P R E S I D E N T, C O L U M B I A B R A N D P R E S I D E N T JOE BOYLE
UNLOCK THE OUTDOORS FOR EVERYONE M I S S I O N
TO BE THE #1 OUTDOOR BRAND IN THE WORLD V I S I O N
COLUMBIA BRAND CUMULATIVE NET SALES GAIN $700M 2 0 2 3 T O 2 0 2 5 >
ICONIC PRODUCT
INSPIRE THE NEXT GENERATION
UNLOCK THE MARKETPLACE OF THE FUTURE
“IT’S PERFECT. NOW MAKE IT BETTER.”
S V P, C H I E F M A R K E T I N G O F F I C E R PRI SHUMATE
EVERYTHING MATTERS
FUTURE PROOFING THE BRAND
CONSUMER CONNECTION GTM BY ACTIVITY BRAND EXPERIENCES
DEEPEN CONNECTION
YOUNGER, MORE DIVERSE
CELEBRATE PRODUCT
CELEBRATE PEOPLE
Image of Gert - the boss, driving the team
CELEBRATE PLACES
PRODUCT PEOPLE PLACES
GTM BY ACTIVITY
INNOVATIONS BRAND STORY TELLING TOUGH MOTHER OUTDOOR GUIDE
BALANCE
CONSUMER CONNECTION GTM BY ACTIVITY BRAND EXPERIENCES
BRAND EXPERIENCE
TRUSTED FRIEND
CONSUMER CONNECTION GTM BY ACTIVITY BRAND EXPERIENCES
S V P, C H I E F P R O D U C T O F F I C E R DEAN RURAK
SOLVING PROBLEMS
SOLVING PROBLEMS TIM BOYLE
SOLVING PROBLEMS
HIKE TRAIL RUN SNOW FISH & HUNT ACTIVITY AREAS
HIKE
TRAIL RUN
SNOW
FISH & HUNT
PFG FISHING PRODUCT AND INNOVATION VIDEO VIDEO PLAYING AT LIVE EVENT PRESENTATIONS WILL RESUME SHORTLY
WARM DRY COOL PROTECTED
S E N I O R D I R E C T O R O F I N N O VA T I O N HASKELL BECKHAM
INNOVATION AT OUR CORE
20212020201820182017 2021 2021 20222022202220212021 2022 2023 20132012201120102009 2015 2016 20072007200219971991 2009 2009
VISIBLE INNOVATION
20212020201820182017 2021 2021 20222022202220212021 2022 2023 20132012201120102009 2015 2016 20072007200219971991 2009 2009 90+ INDUSTRY AWARDS
20212020201820182017 2021 2021 20222022202220212021 2022 2023 20132012201120102009 2015 2016 20072007200219971991 2009 2009 240 PATENT FAMILIES
PROTECTEDCOOLDRYWARM COLUMBIA INNOVATION CATEGORIES
PROTECTEDCOOLDRYWARM SUSTAINABLE COLUMBIA INNOVATION CATEGORIES
CSC VALUES AND ESG EFFORTS VIDEO VIDEO PLAYING AT LIVE EVENT PRESENTATIONS WILL RESUME SHORTLY
PROTECTEDCOOLDRYWARM SUSTAINABLE COLUMBIA INNOVATION CATEGORIES
WARM
2010 2018 2020 2021 2022
DRY
COOL
PROTECTED
20212020201820182017 2021 2021 20222022202220212021 2022 2023 20132012201120102009 2015 2016 20072007200219971991 2009 2009
BOAT TO BAR
EVERYDAY OUTDOOR
HIKE TRAIL RUN SNOW FISH & HUNT EVERYDAY OUTDOOR ACTIVITY AREAS
S V P, G L O B A L W H O L E S A L E TIM SHEERIN
MARKETPLACE
MARKETPLACE OF THE FUTURE
HUMBLE ACCESSIBLE DEMOCRATIC
LEAD WITH COLUMBIA.COM ELEVATE THE COLUMBIA SHOPPING EXPERIENCE DEVELOP THE PARTNERSHIPS OF THE FUTURE
LEAD WITH COLUMBIA .COM
DEVELOP THE PARTNERSHIPS OF THE FUTURE
ELEVATE THE SHOPPING EXPERIENCE
LEAD WITH COLUMBIA.COM ELEVATE THE COLUMBIA SHOPPING EXPERIENCE DEVELOP THE PARTNERSHIPS OF THE FUTURE
28,000 POINTS OF DISTRIBUTION
CANADA
EUROPE
ASIA
CHINA
INTERNATIONAL DISTRIBUTOR REGIONS MEXICOBRAZIL ECUADOR TURKEYMONGOLIA HONG KONG INDIAOMAN DUBAI
UNITED STATES
BALANCE
OPPORTUNITY
OPPORTUNITY
OPPORTUNITY
OPPORTUNITY
MARKETPLACE OF THE FUTURE
E X E C U T I V E V I C E P R E S I D E N T, C O L U M B I A B R A N D P R E S I D E N T JOE BOYLE
INSPIRE THE NEXT GENERATION CREATE ICONIC PRODUCT UNLOCK THE MARKETPLACE OF THE FUTURE COLUMBIA BRAND STRATEGY
7% 3 Y E A R C A G R 9%T O 2022 — 2025 COLUMBIA BRAND GROWTH
COLUMBIA BRAND CUMULATIVE NET SALES GAIN $700M 2 0 2 3 T O 2 0 2 5 >
COLUMBIA BRAND GROWTH BY SEGMENT 2022E 2025E FOOTWEAR +LDD% APPAREL +HSD% >$700M PRODUCT Growth rates reflect 3-Year CAGR
COLUMBIA BRAND GROWTH BY SEGMENT 2022E 2025E DTC.COM +LDD% DTC B&M +HSD% WHOLESALE +HSD% >$700M CHANNELS Growth rates reflect 3-Year CAGR
COLUMBIA BRAND GROWTH BY SEGMENT 2022E CANADA +LDD% 2025E EMEA +LDD% LAAP +LDD% USA +HSD% >$700M REGIONS Growth rates reflect 3-Year CAGR
FOOTWEAR COLUMBIA.COM INTERNATIONAL ACCELERATING GROWTH
COLUMBIA BRAND PRODUCT AND MARKETING VIDEO VIDEO PLAYING AT LIVE EVENT PRESENTATIONS WILL RESUME SHORTLY
PRANA BRAND PRODUCT AND MARKETING VIDEO VIDEO PLAYING AT LIVE EVENT PRESENTATIONS WILL RESUME SHORTLY
P R E S I D E N T, p r A n a MONICA MIRRO
Emerging Brands
prAna__The Active Wellness Brand
OUR MISSION/ We inspire your pursuit of wellness to create a healthier body, mind and planet.
WHO WE SERVE/ Young-Spirited Adventurers who seek revitalization through the activities they love.
prAna__The Active Wellness Brand Our Unique Position Active Industry Outdoor Industry
Make Great Product 030201 Build The Brand Develop Balanced Omni-Channel Distribution Core Growth Strategy
Make Great Product
prAna__a Product Company Becksa CollectionStretch Zion Collection
195 Yoga Climbing
Build the Brand
Develop Balanced Omni-Channel Distribution
Prepared for
prAna. Boulder, Colorado prAna Store
Sustainability Glassine BagRaffia Tie
Active Wellness
Brand Manifesto P R E S I D E N T, M O U N T A I N H A R D W E A R TROY SICOTTE
Secret sauce?
9% – 11% 2 0 2 2 – 2 0 2 5 N E T SA L E S G R OW T H 3 Y E A R CAG R
Our focus _01
M O U N TA I N E E R I N G
C L I M B I N G
S K I & S N OW B OA R D
T R A I L
CA M P
Our culture _02
#HumansOfHardwear
Sustainability
Warranty Team
Our fans _03
Our product
Ghost Whisperer
Expedition Tents
Polartec Highloft Jacket
Dynama Bottoms
Crater Lake UPF Tops
Stretchdown
Camp
Camp PACK @ HOME ROADTRIP ARRIVE @ CAMP UNPACK & SET UP ACTIVITY PACK UP & HEAD HOMECHILLSLEEP/ COZY UP COOK/ CAMP CHORES WAKE UP
Looking ahead
Innovation _01
Awareness _02
Awareness _02
Awareness _02 M O U N TA I N E E R I N G C L I M B S K I & S N OW B OA R D T R A I L CA M P
Access _03
Access _03
Access _03
Access _03
Brand Manifesto
MOUNTAIN HARDWEAR BRAND PRODUCT AND MARKETING VIDEO VIDEO PLAYING AT LIVE EVENT PRESENTATIONS WILL RESUME SHORTLY
P R E S I D E N T, S O R E L MARK NENOW
THE NEXT GLOBAL FOOTWEAR FORCE
JOURNEY
BRAND
PRODUCT CREATION
FOCUS
ROTATION
SUN COOL STRTHIGHSNKR
PURPOSEFUL AUDACIOUS RELENTLESS CREATIVE
POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE POWERFUL UNSTOPPABLE
UNSTOPPABLE
INDEPENDENT
INDEPENDENT
FUNCTION FIRST FASHION
DE-POSITION THE COMPETITION BECOME THE CATEGORY LEADER
LivelyFoam™ UNDER THE FOOT ™ EverTread™
OVER THE FOOT WaterProof WaterProtect ChillProof MoveFree BreatheFree ™
THE NEXT GLOBAL FOOTWEAR FORCE
SOREL BRAND PRODUCT AND MARKETING VIDEO VIDEO PLAYING AT LIVE EVENT PRESENTATIONS WILL RESUME SHORTLY
E V P, C H I E F F I N A N C I A L O F F I C E R JIM SWANSON
STRATEGIC PRIORITIES ACCELERATE PROFITABLE GROWTH DRIVE BRAND ENGAGEMENT ENHANCE CONSUMER EXPERIENCES AMPLIFY MARKETPLACE EXCELLENCE EMPOWER TALENT THAT IS DRIVEN BY OUR CORE VALUES CREATE ICONIC PRODUCTS
ACCELERATING PROFITABLE GROWTH
MARKET TAILWINDS A BROADER CASUALIZATION TREND IS SPUR- RING GROWTH IN LIFESTYLE APPAREL POPULARITY OF OUTDOOR ACTIVITIES HEALTH & WELLNESS AND THE IMPORTANCE OF BEING ACTIVE IS TAKING A LARGER PART IN PEOPLE’S LIVES
ACCELERATING PROFITABLE GROWTH FORTRESS BALANCE SHEET AND DISCIPLINED APPROACH TO CAPITAL ALLOCATION. PROVEN TRACK RECORD OF FINANCIAL PERFORMANCE POSITIONED TO GENERATE MEANINGFUL SHAREHOLDER VALUE.
DELIVERING SHAREHOLDER VALUE + % N E T S A L E S C A G R 9 D I L U T E D E P S C A G R 11+ % A N N U A L I Z E D T O T A L S H A R E H O L D E R R E T U R N 13+ % 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 $3.1B $427M NET SALES
1998 — 2021 ANNUAL SHAREHOLDER RETURN 13+ % C O L U M B I A S P O R T S W E A R C O M PA N Y 10+ % S & P 5 0 0 C O N S U M E R D I S C R E T I O N A R Y I N D E X 8+ % S & P 5 0 0 I N D E X
9% 3 Y E A R C A G R 11%T O 2022 — 2025 NET SALES GROWTH OPERATING MARGIN EXPANSION
B Y 2 0 2 5 OPERATING MARGIN EXPANSION 14%~ 2022 — 2025 NET SALES GROWTH 2022 — 2025 DILUTED EPS GROWTH
3 Y E A R C A G R 12% 15%T O 2022 — 2025 DILUTED EPS GROWTHOPERATING MARGIN EXPANSION
MARKET HEADWINDS SUPPLY CHAIN DISRUPTIONS BROAD-BASED INFLATIONARY PRESSURES ONGOING COVID-19 IMPACT GEOPOLITICAL ENVIRONMENT TIGHTENING FED POLICY
2023 SPRING 2023 ORDERS SUPPORT MODEST YEAR-OVER-YEAR FIRST HALF WHOLESALE NET SALES GROWTH
1. FOOTWEAR
1. FOOTWEAR
2. INTERNATIONAL EXPANSION CANADA EUROPE CHINA
3. DIGITAL COMMERCE
2022 — 2025 COLUMBIA BRAND GROWTH 7% 3 Y E A R C A G R 9%T O 20
20% 3 Y E A R C A G R 22%T O 2022 — 2025 SOREL GROWTH2022 — 2025 COLUMBIA BRAND GROWTH 2022 — 2025 MOUNTAIN HARDWEAR GROWTH
3 Y E A R C A G R 2022 — 2025 MOUNTAIN HARDWEAR GROWTH 9% 11%T O% 2022 — 2025 SOREL GROWTH 2022 — 2025 PRANA GROWTH
5% 3 Y E A R C A G R 7%T O 2022 — 2025 PRANA GROWTH2022 — 2025 MOUNTAIN HARDWEAR GROWTH
2022 — 2025 GROWTH BY BRAND C O L U M B I A S O R E L2022E82% 11% 3% 4% M O U N T A I N H A R D W E A R p r A n a 2025E79% 14% 3% 4%
3 Y E A R C A G R 2022 — 2025 GROWTH BY CATEGORY 7% A P PA R E L , A C C E S S O R I E S & E Q U I P M E N T T O9%15% F O O T W E A R Columbia Footwear up 10% to 12% SOREL up 20% to 22% T O17%
2022 — 2025 GROWTH BY CATEGORY A P PA R E L A C C E S S O R I E S E Q U I P M E N T F O O T W E A R 2022E 2025E76% 24% 71% 29%
3 Y E A R C A G R 2022 — 2025 GROWTH BY GEOGRAPHY China up mid-teens% Europe Direct up mid-teens% U N I T E D S T A T E S L A A P E M E A C A N A D A 8+ % TO 10%+ 9+ % TO 11%+ 11+ % TO 13%+ 12+ % TO 14%+
2022 — 2025 GROWTH BY GEOGRAPHY U N I T E D S T A T E S L A A P 2022E67% 13% 12% 8% E M E A C A N A D A 2025E65% 14% 13% 8%
2022 — 2025 GROWTH BY CHANNEL 13% T O15% D T C E - C O M M E R C E 6% T O8% D T C B R I C K & M O R T A R 3 Y E A R C A G R T O11%9% W H O L E S A L E
2022 — 2025 GROWTH BY CHANNEL W h o l e s a l e D T C B & M 2022E55% 27% 18% D T C . c o m 2025E55% 25% 20%
OPERATING MARGIN EXPANSION B Y 2 0 2 5 14%~
GROSS MARGIN DRIVERS HEADWINDS ECONOMIC UNCERTAINTY — INFLATIONARY PRESSURES FOREIGN CURRENCY WEAKNESS INVENTORY & MARKETPLACE PROMOTION LEVELS TAILWINDS BRAND PRICING POWER DISCIPLINED EXECUTION
SG&A DRIVERS HEADWINDS/INVESTMENTS INFLATIONARY PRESSURES STRATEGIC INVESTMENTS, INCLUDING DEMAND CREATION TAILWINDS TOP LINE MOMENTUM, FUELS FIXED SG&A EXPENSE LEVERAGE OPERATIONAL EFFICIENCIES EXPENSE DISCIPLINE
STRATEGIC INVESTMENTS DEMAND CREATION DIGITAL SUPPLY CHAIN OTHER
STRATEGIC INVESTMENTS DEMAND CREATION INCREASE RATE OF SPEND TO >6.0% OF SALES EMPHASIZE GROWTH ACCELERATORS UTILIZE FULL FUNNEL – DIGITAL-FIRST MINDSET CREATE DEEPER CONNECTIONS WITH CONSUMERS
STRATEGIC INVESTMENTS DIGITAL ENHANCE ONLINE CONSUMER EXPERIENCES GENERATE CONSUMER INSIGHTS WITH DATA AND ANALYTICS AMPLIFY LOYALTY / MEMBERSHIP ENGAGE CONSUMERS WITH DIGITAL MARKETING
STRATEGIC INVESTMENTS SUPPLY CHAIN ENHANCE CONSUMER EXPERIENCES THROUGH SERVICE AND SPEED ADAPT OUR SUPPLY CHAIN TO AN EVOLVING BUSINESS MODEL SERVING AN OMNI-CHANNEL BUSINESS IMPROVE INVENTORY EFFICIENCY ACTIVATE CAPACITY GROWTH
STRATEGIC INVESTMENTS OTHER INVEST IN NEW GROWTH OPPORTUNITIES DTC STORE EXPANSION EMPOWER OUR TALENT THROUGH TOOLS & TECHNOLOGY
CAPITAL ALLOCATION PRIORITIES RETURN AT LEAST 40% OF FREE CASH FLOW TO SHAREHOLDERS INVEST IN ORGANIC GROWTH OPPORTUNITIES OPPORTUNISTIC M&A TO DRIVE LONG-TERM PROFITABLE GROWTH THROUGH DIVIDENDS AND SHARE REPURCHASES
CAPITAL ALLOCATION PRIORITIES C U M U L A T I V E F R E E C A S H F L O W 2 0 2 3 - 2 0 2 5 > C U M U L A T I V E F R E E C A S H F L O W T O S H A R E H O L D E R S 2 017- 2 0 21 FREE CASH FLOW $1,241M SHARE BUYBACK $265M DIVIDENDS $657M $1BNET OPERATING CASH FLOW $1,547M Please see the Free Cash Flow Reconciliation slide for more information
ANNUAL TOTAL SHAREHOLDER RETURN TARGET 3 Y E A R C A G R NET SALES GROWTH OPERATING MARGIN EXPANSION DIVIDEND/ REPURCHASE ORGANIC TSR TOTAL SHAREHOLDER RETURN POTENTIAL VALUATION MULTIPLE EXPANSION +9% TO 11% +3% TO 4% +1% TO 2% +13% TO 17% +13% TO 17%
2025 EARNINGS GROWTH ALGORITHM $4.5B T O % N E T S A L E S O P E R A T I N G M A R G I N D I L U T E D E P S $4.7B ~14 $7.35 T O $7.95 + =
FREE CASH FLOW RECONCILIATION GAAP financial measures for forward-looking periods are not available without unreasonable effort.