3/8/2019 BSG Decisions & Reports

Projected Year 11 Performance 

Investor Change
Scoring Measures Year 11 Expectation Other Measures Year 11 from Y10
EPS (earnings per share) $2.22 $2.50 Net Revenues ($000s) 515,891 +19.2%
ROE (return on equity) 19.6% 21.0%
Net Profit ($000s) 44,225 +10.6%
Credit Rating A– B+
Image Rating 83 70 Ending Cash ($000s) 4,901 -1,173

North America Europe-Africa Asia-Pacific Latin America

E F P Facility Facility Facility Facility
Space Available for Footwear Production Equipment in Y11 5,000 pairs 0 pairs 6,000 pairs 0 pairs
Production Equipment in Place at Beginning of Y11 (000s of pairs) 4,000 pairs 0 pairs 4,000 pairs 0 pairs
Purchase of Production New (000s of pairs) 250 pairs 0 pairs 250 pairs 0 pairs
Equipment Refurbished (000s of pairs) 0 pairs 0 pairs 0 pairs 0 pairs

Sale of Existing Equipment (oldest equipment will be sold first) 0 pairs 0 pairs 0 pairs 0 pairs

Total Footwear Production Capability in Y11 (000s of pairs without OT) 4,250 pairs 0 pairs 4,250 pairs 0 pairs
Percentage of New / Refurbished Production Equipment 100% 0% 0% 0% 6% 94% 0% 0%

North America Europe-Africa Asia-Pacific Latin America

P I O Facility Facility Facility Facility
Capital outlay ($000s) $10,625 $0 $10,625 $0
Option Purchase of special equipment No No No No
Projected annual cost savings
A to reduce reject rate by 50% at current reject rate ($000s) $44 $0 $1,632 $0
Capital outlay ($000s) $6,800 $0 $6,800 $0
Option Layout revisions to reduce pro-
Projected annual cost savings Yes No Yes No
B duction run setup costs by 50% at current model count ($000s) $2,570 $0 $2,570 $0
Capital outlay ($000s) $20,400 $0 $20,400 $0
Option Purchase of special equipment
Projected annual cost savings No No No No
C to increase S/Q rating by 1 star at current S/Q effort ($000s) $2,937 $0 $4,481 $0
Capital outlay ($000s) $61,200 $0 $61,200 $0
Option Robot-assisted production to in-
Projected annual cost savings No No No No
D crease worker productivity by 50% at current production / comp. $6,789 $0 $956 $0

North America Europe-Africa Asia-Pacific Latin America

S P E Facility Facility Facility Facility
Space in 000s Equipment Space at the End of Year 10 5,000 pairs 0 pairs 6,000 pairs 0 pairs
of Pairs Construction of Additional Space (initiated in Y10) 0 0 0 0
(without OT)
Space Available for Equipment in Year 11 5,000 pairs 0 pairs 6,000 pairs 0 pairs

Construction of New / Additional Space (to be available in Year 12) 0 pairs 0 pairs 0 pairs 0 pairs

Space Available for Production Equipment in Year 12 5,000 pairs 0 pairs 6,000 pairs 0 pairs

Capital Outlays Purchase of New Equipment $ 5,000 $ 0 $ 5,000 $ 0

in Year 11 Purchase of Refurbished Equipment 0 0 0 0
($000s)
– Book Value of Equipment Sold 0 0 0 0
Equipment Upgrade Options 6,800 0 6,800 0
Energy Efficiency Initiatives 425 0 425 0
New / Additional Facility Space 0 0 0 0
Net Capital Outlays in Year 11 $ 12,225 $ 0 $ 12,225 $ 0

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