Company Profile 2015

company profile 2015

DIADORA group Surpassing our successes is our dream. Uniting our talents to those of the team is how to achieve it. /////////////////////////////////////////////

Enrico Moretti Polegato Diadora President index

0.1 phIlosophy 0.2 history 0.3 our brands 0.4 technologies 0.5 distribution 0.6 operations 0.7 staff 0.8 financial 0.9 sales strategy 10 hall of fame 0.1 phIlosophy

over 60 our vision years of the Winning is not an end in itself. It autHentic is the heart of our company which shared we want to make a global leader in the market of sports, lifestyle values and safety through brands founded on passion, cutting-edge style of sports and technological innovations. ///////////////// ////////////////////////////////////////////////

PASSION & SHARING Passion is the fundamental value that has always urged our business onwards, the true reason we were founded RESEARCH & CREATIVITY and exist today. Creativity and imagination It is not only our heart, our have made our company soul, but also represents the great; research into materials determination to reach our go- and ways of assembling our als and the creative strength products, constant innova- to make a winning product. tion in the development of te- If we are still here today, com- chnologies applied to sports, petitive and strong, we owe it wellness and safety of the in- to our group, made of deter- dividual and, finally, our style: mined and cohesive people: Italian, visionary, transversal the group is our greatest cer- and global, represent our tainty. greatest successes. 0.2 history

THE 70S At the beginning of this decade, which marked the explosion of professional sports, Diadora was the first Italian company to develop a new concept of stagione sports marketing, which in- 1991 volved the choice to have THE 90S champions with wide ap- peal as our testimonials. Diadora instituted the CRD, Champions such as Bjorn that is, the Diadora Resear- Borg and Roberto Bettega ch Centre, composed of a are not just important figu- work team that was wholly res in sports, but became innovative for those years: true style icons. Sports shoe technicians, experts became a clothes-related from the Milan Polytechni- 1948 phenomenon as well, and cal Centre of Bioenginee- the Diadora products cros- ring, and doctors speciali- Diadora was founded as sed over from the realm of sed in orthopaedics. an artisan’s laboratory for competitive sports to leisu- 50 making mountain boots. re, not only helping to write anni These quickly established the sporting history of that themselves as the best period, but also to shape mountain and work boots taste in that age of the new on the market. “lifestyle” market. Diadora was the undisputed A new intuition allows Dia- protagonist of international dora to capitalise on the sports, thanks to its partner- experience it has in the ship with world-class cham- sports market, and to re- start pions. The sportswear phe- turn in a certain way to its nomenon which sports had origin by recovering the 08/07/1978 In this decade, a shift in generated gave no signs of production of work shoes production towards the slowing down, on the con- fifty years after its founding: world of sports occurred. trary, it intensified thanks to Diadora Utlity is born. Diadora distinguished itself icons such as Pat Cash, An- for the high quality and cut- drea Zorzi, Antonio Cabrini 1998 ting-edge characteristics of and many others. Sports its products. Its production figures are the new celebri- 17/07/1994 reached major industrial ties and their style sets the volumes. trend. THE 60S THE 80S 0.2 hIstory

THE 2000S SINCE 2010 These are years of wor- future ldwide expansion brou- The path to renew Diadora ght forward with excellent has begun, and the com- sports partnerships, but pany focuses on the factors are also the years of new that have made it over the influences, through a very years a point of reference specific vision of luxury for many: style and sports sportswear. The Herita- performance are the key ge line is born, destined words to its growth. Music to become a real clothing as added to sports in the phenomenon and the first Olympus of style and the true experimentation of company’s collaborations blending sportswear and remain firm atop these two fashion. 09/07/2006 worlds.

11/04/2009 Lir, the financier of the Mo- retti Polegato family, and a key shareholder of Geox, signs an agreement to pur- chase Diadora, with the aim of enhancing the brand’s enormous worldwide production. Enrico Moretti Po- elgato is the new president of the company. 2009 0.3 our brands

performance work wear diadora world

lIfe style

five brands one world ///////////////// 0.3.1 performance

mission economics 2014 To help every athlete over- Percentage of group sales: come their limits in all con- ditions and on any playing surface. product strategy The clothing and footwear lines of Diadora Sport Performance have the men and women athletes 46 at the centre, their needs and their accomplishmen- ts. Innovative and exclusive technologies, such as the NET Breathing System, Axeler Propulsion and DA2 allow the utmost performance and wellbeing during training and competition. Thanks to the close collaboration between the Dia- dora Research Centre and the athletes and teams we sponsor, our product development sets increasingly ambitious goals for itself. focus area Running Soccer Cycling Tennis comMunication Fitness innovation Key markets tools athletes Italy 47% Testimonials: athletes/team Europe 13% Event: marathon/in-store Extra Europe 40% brand Advertising: vertical/main 0.3.2 SPORTSWEAR

mission economics 2014 To accompany the new ge- Percentage of group sales: nerations in defining their own style by applying ca- nons that are original and outside the box. product strategy The Diadora “Sportswear” clothing and footwear line 4 is born from the contempo- rary blend of suggestions from the street with a sporting style. Original models made thanks to new co- lours and distinct materials, have allowed us to conquer even the youngest target markets. Authenticity, irony and freedom of thought characterise this line that is enriched by limited editions made in collaboration with the most influential snea- ker creators on the market and important figures in the world of Italian and international music. focus area comMunication Sportstyle style tools Key markets mith Testimonials: singers/bands Italy 50% Event: television/in-store Europe 23% Fairs: Bread&Butter, Berlin Extra Europe 27% web Advertising: web/main 0.3.3 heritage

mission economics 2014 To celebrate the search for Percentage of group sales: sophistication and the hi- storical authenticity as fashion icons. product strategy The Diadora Heritage clothing and footwear line represents Diadora’s stylistic avant-garde, excellen- 11 ce, the brand’s very icon. Made in Italy, exclusive tre- atments, luxury materials and handmade quality are the distinctive factors that have marked its success. Thanks to the collaboration with major designers and the constant stylistic research, this line has broken into the international fashion style. focus area comMunication Fashion design tools Key markets Testimonials: star system icon Event: in-store Italia 75% Fairs: Premium, Berlin Europa 10% Pitti Uomo, Firenze Extra Europe 15% luxury Advertising: web/main 0.3.4 utility

mission economics 2014 To offer the highest level of Percentage of group sales: safety through cutting-edge technology with a sophi- sticated and Italian style. product strategy The Diadora Utility line is an uncontested leader in the market of safety clothing and footwear. Thanks to 39 innovative technologies, extremely high quality standards and a strong sporting nature, it has changed the rules of the market, di- ctating new competitive standards. The introduction of exclusive technologies such as the NET Breathing System guarantee absolute comfort in any climactic condition, ensuring the greatest safety and the utmost comfort. focus area comMunication Workwear innovation tools Key markets professional Event: in-store Italy 63% Fairs: A+A, Dusseldorf Europe 30% Expo Protection, Paris Extra Europe 7% safety Advertising: vertical 0.3.5 holler

mission economics 2014 To guarantee safety and Percentage of group sales: comfort at the best price. product strategy The Holler footwear line was born from the need to expand the footwear market vertically, capitalising on the experience of Uti- 1 lity and its sales network. Accessibility, service and rapid replenishing of stock are the drivers that guide the project; aggressive- ness, dynamism and con- creteness are the characteristics of the brand. focus area price Workwear comMunication professional tools safety Advertising: web 0.4 technologies

style control

STONE WASHED + VINTAGE TECH TOUCH CONTROL + FLEX ROTAX SYSTEM

performance function

AXELER PROPULSION

wellness

Lascia respirare i tuoi piedi grazie all’innovativo ed esclusivo sistema

tecnologia licenziata da

The Diadora Research Centre in collaboration with sponso- energy red athletes and international designers constantly deve- lops innovative technologies to redefine athletic and stylistic standards, contributing DOUBLE ACTION to create high-performing products that are at the cutting-edge of fashion. 0.5 distribution

total market Diadora: 75% Utility: 25% sales by region Italy 26% Europe 25% Extra Europe 49%

Diadora’s distribution network includes more than 60 countries in the world and is divided into directly hand- led markets, distributors and most DOORS most DOORS licensees. TOTAl Particular attention has been paid in recent years to ope- diadora utility ning the most important Eu- Italy: 2.800 DOORS Italia: 3.400 ropean markets, together Japan: 1.800 France: 890 with an implementation of the Canada: 650 21.000 Asiatic and Latin American Germany: 450 markets. Among the most im- U.S.A.: 500 Spain: 390 portant markets are Italy, the Denmark: 460 Diadora: 14.500 Austria: 120 U.K., Germany, Japan, Cana- Norway: 450 Utility: 6.500 .... da, Chile and Israel. Among U.K.: 400 the new markets are France, Indonesia: 400 Spain and Brazil. .... 0.6 operations

diadora SUPPLIERS BY REGION: totaL Shoes: shoes Italy: 44.000 Europe: 46.000 Far East: 2.400.000 2.490.000

Textile&accessories: Italy: 25.000 Europe: 50.000 total Far East: 1.850.000 Accessories: accessories total Italy: 70.000 Europe: 32.500 267.500 textile&acc Far East: 165.000 1.925.000

we produced around The attention to our finishes and the selection of raw 5.700.000 and semi-treated materials, on the basis of rigorous utility quality standards, are the products total basis and primary goal of SUPPLIERS BY REGION: our operations division. shoes Quality control is not limited Shoes: to the final phases of - pro Europe: 810.000 810.000 duction, but intervenes on Textile&accessories: the entire production cycle, Italy: 10.000 guaranteeing that we put Europe: 20.000 total onto the market products of Far East: 120.000 impeccable quality. Accessories: total textile&acc Our select production par- Italy: 20.000 accessories 150.000 tners, whom we monitor Europe: 3.500 29.000 constantly, are based in the Far East: 5.500 Far East, Eastern Europe and Italy. 0.7 STAFF

employees

post service by function time saving Corporate: 26,4%

Marketing&Communication: 9,1%

Sales: 9,9% internal SAVE Operation + R&D: 45,5% money Great companies and suc- Retail: 9,1% services cess stories are the arith- metic result of ideas, determination and people; number of teamwork is fundamental PERSONAL to reach the goals that our AND HEALTH group sets itself and it is for employees SEVICE this reason that we wanted healtH to strengthen the cohesion mean age and stimuli through conti- nuous formation, dedicated services for employees, 176 executives and consultants and programs focused on growth. 120 Attention to the market and to the new competitive chal- lenges have convinced us, 98 details since 2009, to focus on constantly increase our staff by 69 Time saving: hiring youth with great po- carwash, school books, tential who, alongside the laundromat, Health: experience that is already travel agency. flue vaccine, discounted present in the company, will Personal: rates with a health centre. contribute with ideas and gym, nursery. Save money: passion to the regenerative Post service: employee discounts at the thrust that is pushing our post office, receive packa- Caerano Outlet, discounts brands and products. 2009 2011 2013 2014 ges at the company. with various stores. 0.8 financial

114. 608mio Consolidated sales 93.608mio aggregated 9.300mio Consolidated EBITDA sales 2014 sales 4.661mio 2.100mio 81.171mio NET Income 247 mio EBITDA Consolidated The last four years (2011- 80.531mio sales 1.316mio 14) were characterised by Consolidated an initial focus on develo- 5.709mio NET Income sales ping the domestic market EBITDA and by the constant and mio 5.146mio progressive increase of the 214 international market. EBITDA 84m Streamlining and rationa- NET Income lising the portfolio of pro- 209.399 mio 508m ducts of our Sport, Life- style and Work lines have NET Income allowed for homogeneous 185.240 mio growth in the key markets. Development, in line with the corporate strategy, has been mainly oriented to the more highly lucrative and image-based products and lines, allowing us to invest growing resources in stren- gthening the corporate and distributive structure and in the activities of marketing and communication, fundamental pillars for the future of our brands. 2011 2012 2013 2014 2011 2012 2013 2014 0.9 sales strategy strategic drivers

Segmentation of distribution channels and networks.

Planning of selling cam- paigns, promotions and deliveries.

Organization and control of All sales strategies are de- the distribution network. fined through constant- mo nitoring of the market. The company has recently stren- sales by gthened its hold on the tra- Relationship with the com- ditional channels such as distribution mercial network and with wholesale, key accounts the retail partners. (both general retailers and specialized ones) and di- channel rect operating stores, thanks Wholesale: 96,50% to the newly opened online D.O.S.: 3% Teams who are dedicated store. A steady increase of e-commerce: 0,50% to high-margin projects. market share for each sin- gle brand remains the key objective. This goal is also being pursued through limited editions and capsule collections dedicated exclu- sively to particularly favo- rable markets. This strategy has been incredibly fruitful for the development of new ranges and for incrementing business across the board. 1.0 hall of fame

1981 1984 1984 1990 1991 1991

1984 1984 1985 1992 1994 1995

1987 1990 1990 2008 2008 2009 diadorasport s.r.l. via montello, 80 31031-caerano di s. marco treviso-italy tel. +39 0423 658.1 fax +39 0423 858512 www.diadora.com