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.