NIKE INC. !

INVESTOR MEETING

FY11
OUR BUSINESS RISK FACTOR FINANCIAL REVIEW

OUR BUSINESS

Business Model

Business Model

Strengths
Strong Brand Equity
Top 25 leading brands Brand value $14,5B (2011) Increase in market share Leading player in footwear & apparels

Products Innovation
Emphasis on design innovaRon Signicant investment in R&D

Broad Distribution Network

18 sales oces, 363 execuRve retail outlets 20,000 retails accounts 16 distribuRon centers

Opportunities
Association with NFL
On-eld licensed partner for the US NFL EPS expected to increase 3% in 2012

Opportunity in India
Removal of restricRons on FDI in retail sector Indian footwear market forecasted to increase by 56.7% in 2014

Brand Reorganization
Reorganized brand into 6 geographic market segments with fewer management layers Reduced companys workforce by 4%

Growth in Global Footwear Market

Forecasted to grow by 17.6% in 2014 55.1% of Nikes revenues from footwear segment

Expansion into Emerging Markets

Well-posiRoned in emerging markets World Cup 2014 and Olympics 2016 in Brazil

Sustainable Strategies
Geographic Expansion Direct to Consumer
Long-term Financial Objectives
High average annual revenue growth rate Strong EPS growth Return on Invested Capital of 25% Increasing dividends with payout range of 25-35% of EPS

Extend Nike Brand in 6 geographical regions Target addiRonal revenue of $3.0 to 3.5B by 2015 Expand into developing and emerging markets

Plans to open 300 Nike stores around the world AddiRonal return of $2.2 to 2.6B by 2015 Working closely with retail partners

RISK FACTORS

Financial
Foreign Currency Fluctuations Global Economic Situation

Operational Reputational
Macroeconomic Factors Natural Disasters Focus on Innovation Celebrity Endorsements Environmental Concerns Diverse Stakeholders in GSC

Financial
Foreign Currency Fluctuations

Managing the Risk

Monitoring of risk with techniques (value-at-risk, sensiRvity analysis) Financial instruments to hedge risk Long term debt of xed interest rate JP and US$

Focus on growing brand in developing countries

Global Economic Situation

Streamline operaRons in developed countries & leverage on exisRng consumer base Manage inventory risk by monitoring sell through & maintaining appropriate supply-demand balance

Operational
Macroeconomic Factors

Managing the Risk

Diversifying locaRons of manufacturing faciliRes AdjusRng prices on selected items Flexible inventory & supply chain model to respond to cost pressures and new opportuniRes

Natural Disaster

Diversied operaRons and conRnual expansion into new markets e.g. Brazil

Close engagement of athletes ensures sensiRvity to

Focus on Innovation

consumer needs Management of inventory levels to support quick reacRons to changes in market trends

Reputational
Celebrity Endorsements

Managing the Risk

Strong PR strategy in handling reputaRonal risk backs Nikes investment decision & protects celebrity-brand- generated revenue

Environmental Concerns

Constant innovaRon and strategic partnerships towards improving sustainability Building & upgrading faciliRes to leverage new technologies Strict code of ethics & measures to monitor Nike factories Prole of factories, workers and factory monitoring results available online

Diverse Stakeholders in GSC

FY11

WERE A GROWTH COMPANY

$20.9B
+10%
North America
Western Europe Central &

$1.0B Eastern Europe

+7%

$7.6B
+13%

$3.8B
+4%

Japan China $2.1B

+16%

$766M
21%

Emerging Markets

$2.7B
+24%

Share price

109.24

53.86

2006 FY01 FY10 QUALITY GROWTH Revenue EPS ROIC 8% 14% 14% 21% FY11 10% 14% 22%

2012

CAPITAL EFFICIENCY

WERE A PROFITABLE COMPANY

10.22%
7.42% 4.73%

10.03% 7.47% 6.48% 1.16%

NET PROFIT MARGIN

14.50%
11.79% 8.84% 5.82% 1.19% 9.42% 5.94%

RETURN ON ASSET

21.77%
14.89% 17.68% 13.52% 16.05% 10.21% 3.14%

RETURN ON EQUITY
CINTAS

NIKE

VF

ADIDAS RALPH PUMA LAUREN

PVH

WERE FOCUSED ON RETURNS

5 - Y E A R C U M U L AT I V E T O TA L R E T U R N
$250 $200 $150 $100

2006
DOW JONES US FOOTWEAR INDEX S&P 500 S&P 500 APPAREL, ACCESSORIES & LUXURY GOODS INDEX NIKE

2011

EPS Share repurchases

$0.92 $0.74 $0.62 $0.50 $0.40 $1.00 $1.08

$1.24

$0.24

$0.24

$0.28

2001
$ million SHARE REPURCHASE 01 157 02 237 03 191 04 414 05 556 06 781 07 08 09

2011
10 11

975 1,248 639

754 1,872

OUR FUTURE

2015 $27B
Developed markets

2015 $28B - $30B

GROWTH DIMENSION FY1015 GOAL mid single digit Low double digit High single digit Low double digit FY11 7% 15% 11% 9%

GEOGRAPHY

Developing markets Footwear Apparel

PRODUCT

NIKE INC. ! INVESTOR MEETING

Q&A