“nike has never been stronger, and our opportunities for growth never greater.”

Mark Parker President and Chief Executive Officer

To our shareholders, I thought long and hard about The Nike brand alone represents more players, more boots and what to say in my first letter as dozens of sport performance more goals in the tournament your new CEO. What part of and culture categories, delivered than any other brand. the Nike story should I focus through four geographic regions What does this mean for you ? What do you as a shareholder across more than 160 countries. the investor? Twelve years ago, want to know about our future Add to that the other brands in Nike Soccer was a $40 million together? What is Nike doing the Nike family – Nike , Nike business. We’re $1.5 to grow into its potential? Bauer Hockey, , billion today. , Hurley and – As I pondered the intricacies of which generated nearly $2 Innovation drives Nike Golf to these issues, I kept coming back billion in sales. That’s a offer the most complete line of to one thing: I love this company. lot of opportunity. golf products under a single For 27 years I have seen the brand. The Sasquatch driver The U.S. Region delivered power of Nike innovation at earned Editor’s Choice on the exceptional results, accounting work. I have seen the Golf Digest Hot List. Nike irons for approximately 40% of our breakthrough contributions we out-numbered all others at pre-tax income (PTI) growth. bring to the world of sports and Augusta for the second year Product innovation and brand culture. I have seen the pride running. And by the way, we relevance in our Europe, Asia and the humility in the eyes of are now the largest golf apparel and Americas regions drove our employees as the human company in the world. PTI growth by another 40%. potential we serve plays out The remaining 20% of our PTI Innovation drives the Jordan on the world stage. growth came from reducing Brand, which grew more than I’m honored to be a part of that. corporate expenses. All this 40% in revenues this year. Innovation is driving Women’s But enough about me. Let’s get translates into growth in diluted Fitness, Nike Skate and Sport down to business. We had a earnings per share of 18%. Culture toward new levels of great year, the most successful At the center of this success is value and credibility. year in Nike history, adding $1.2 the one thing that has driven billion in revenue, bringing Nike since day one – innovation. Throughout the company I see us to $15 billion. and share tremendous Innovation drives Nike Soccer. enthusiasm for the product To understand where this growth This year in Berlin more than design and development that is came from, we need to at half the players in the Final were streaming through our pipeline. the breadth of the Nike family. in Nike boots. In fact, Nike had We will continue to invest in Wherever a consumer interacts we are able to meet these the innovation engine that with the brand – in stores of our challenges on. defines the essence of Nike’s own or those of our retail Behind all of this is your team competitive advantage. partners, online, through at Nike. I can tell you that other advertising, at events – our goal Innovation also drives our companies envy our sense of is to elevate that experience approach to Corporate family, respect and optimism. through compelling products Responsibility. How can we We have the brightest, most and human stories. effect social change through passionate group of hard- sport? How can we use Our new Nike+ product working people in the industry, sustainability to drive design? concept is a breakthrough capable of creating enormous How do we continually improve example of elevating the energy. It is the job of the working conditions for the consumer experience. Working management team to channel people who make our with the team at Apple, we that energy, and to continue to products? We do these things developed an idea that bridges recruit, retain and develop the because they are the right thing the physical world of running best talent in the industry. The to do, and because they will and training with the digital task is in good hands. They are help us grow. world of content and the curious, connected, and internet. We launched Nike+ committed to creating success But innovation alone is not in May, and the response has in any conditions. enough for us to grow been amazing. I’m excited responsibly and profitably. Innovation and excellence. My about the success of our To do that requires an equally job as your CEO, and the job of collaboration with Apple valuable attribute – excellence – all Nike employees, is and where it can lead. a passion for doing things well. to apply these values to To deliver these kinds of every opportunity, to build One of our great strengths is products and consumer momentum, and to grow into our ability to connect with experiences profitably, we rely our collective potential. consumers. We have a on operational excellence – shameless sense of curiosity. I look forward to it. managing costs and driving We want to know everything efficiency. We will continue to Thanks, about their dreams and needs, be very aggressive in pursuing and we’re willing to dive deep lean manufacturing practices, to learn how to deliver relevant materials consolidation, focusing products and messages. on style and SKU productivity, This is increasingly important as and gaining Supply Chain consumers face a dizzying array efficiencies. We look for every President and Chief Executive Officer, of choices in the marketplace. opportunity to squeeze more Nike, Inc. In China, for example, we are value out of the money we making strong connections spend, and that means more with young consumers. value for consumers and Their response to the brand is for investors. beyond anything we expected, We are committed to being making China a $600 million nimble and strong and focused business. And we’re extending in everything we do. This is our market leadership critical for any company position every day. operating in a global marketplace Nike has always been more that is in a state of constant than a product or an attitude. change. By continually refining Nike is also an experience. our operational excellence,