Q: A: What is the core of NIKE’s We believe in potential, not philosophy? limits. The 4-minute mile was safe, until Roger Bannister. Lou Gehrig’s 2,130 straight games was safe, until Cal Ripken. No one would ever clear 29 feet in the long jump, until Bob Beamon. Nobody would ever beat Bob Beamon, until Michael Powell. That’s how it is with NIKE. We believe.

Mark Parker President and Chief Executive Officer, NIKE, Inc. GROWTH . . . represent a more diversified This is really about maximizing business as part of an optimi- on the best opportunities for And we have a lot of both. So our mission is to take the How much more can NIKE grow? portfolio, and they help keep the our supply chain efficiencies zation plan, making sure we the company. There’s just a deep competitive things we do best and share I don’t believe in limits, but I NIKE brand focused, allowing and minimizing costs. Since leverage our resources, manage fire that makes us try to be a them with the world and, hope- believe in goals. Our goal is to us to develop new business op- 2001 we’ve had nine successful our costs, and invest wisely in What should shareholders leader in everything we do. fully, inspire and enable individ- reach $23 billion in revenue by portunities where we don’t want supply chain implementations. growth opportunities. understand about NIKE? uals to reach their potential. fiscal year 2011, and I’d say we’re the NIKE brand to go. There is That helps us better manage I think as a shareholder you ON NIKE . . . well on our way. also a lot of opportunity for forecasting and inventory. What role will acquisitions play should at NIKE and ask NIKE’s mission statement is to What makes NIKE different? complementary growth across There’s a lot we do to manage in the NIKE growth plan? yourself, Are they really focused bring inspiration and innovation I think there are a few things I Seventy-five percent of that the portfolio through sharing product costs — lean manufac- We are always looking for ways on the right things? Is the product to every athlete in the world. see everyday that really set us growth will come from the NIKE resources and efficiencies. turing, raw materials consolidation, to expand our growth potential, innovative and compelling? What does that mean to you? apart. First, we’re innovators by brand. The strength of the NIKE making sure we optimize our but within certain principles. Is the consumer experience rich I think sports is a healthy and nature. We’re fixated, obsessed brand is our most valuable asset. In fiscal 07 the NIKE subsidiaries SKU management, focusing We ask a lot of tough questions. and relevant? Are we being a positive expression of our by innovation. I think that NIKE It’s intangible, it doesn’t show up grew revenue 16 percent to on the most profitable styles. responsible corporate citizen human nature. We’re competi- represents a passion and an on the balance sheet, but really reach $2.3 billion. We saw record We’re also ramping up our “Does it improve our ability to in the world? Are we completely tive, we’re physical, we’re insatiable appetite to go deeper it’s our most valuable asset. revenues and PTI for digital samples and 3-D model- grow existing businesses?” focused on the consumer? drawn to challenges. We like with an athlete within sports and Hurley, record revenue ing to reduce costs in product When the answer is yes, we to achieve things on a personal and to take those insights and We see tremendous opportunity for , and record PTI development. There is a buy a company like Impact And that’s really what our job is level, and we like being part translate those creatively into in both established and emerg- for NIKE Bauer Hockey. Over the lot of discipline around the Technologies, which allowed us — to make sure that we’re clear of teams that share a passion innovative concepts and prod- ing markets around the world. last five years, the subsidiary company on becoming leaner to become the leading innovator about our potential. Kind of like and a common goal. ucts and stories. In the U.S. revenues grew seven brands have more than doubled and stronger. in golf club design. percent in fiscal 07. NIKE is the their revenue contribution. To me sports, at its best, We have incredibly wide pe- fastest growing running brand The second big lever we pull We ask, “Does it expand our is a noble part of the human ripheral vision, the ability to see in Germany. In Russia we’ve To see the potential of the sub- to create value is cash deploy- consumer base within our culture There’s a lot of pride at NIKE experience. and be inspired by things that doubled revenue in the last sidiaries, you just have to look ment. We target a dividend of sports?” When the answer ... our intentions, our influence, happen in sports, but also in film three years. We’re the No. 1 at Converse. Revenue increased payout between 20 and 30 is yes, we buy a company like NIKE is a part of that experience. and music and digital technol- athletic brand in China, a market 23 percent, and PTI increased percent of our trailing 12-month Converse, which is delivering our results are all really very We’re athletes, so we under- ogy — everything in youth we expect to be our second 133 percent. In fact, Q4 was the EPS. Since 2003, we’ve raised tremendous growth by evolving stand sports and what athletes culture around the world. We’re largest within three years. biggest global sales quarter ever our dividend payout from 20 franchise concepts like the Chuck positive. But that doesn’t need to compete. We’re inno- incredibly curious, but we’re also for Converse. to 24 percent. I’m proud of our Taylor, and by creating new ideas vators, so we’re able to create incredibly focused. Our promise is to deliver con- performance there. in footwear and apparel that mean we are satisfied. products that enhance perfor- sistent, profitable growth over And next year is the 100th an- resonate with young consumers mance. And we’re passionate We continually challenge our- the long term — high single-digit niversary of Converse, so we’re We also return cash to share- all over the world. an athlete. We’re actually made about what we do. selves to be better. There’s a lot revenue growth and mid-teens busy cooking up some special holders in the form of share up of a lot of athletes, and I think of pride at NIKE. We believe in EPS. Since we introduced this concepts to celebrate the cen- repurchases. We’ve increased We ask, “Does it give us entry that permeates our culture. NIKE There’s also an asterisk in our what we do. We are a youthful growth model in 2001, we’ve tennial of the brand. our share repurchases in each into new consumer cultures has tremendous resources, but mission statement — “If you and a premium brand. Our inten- generated a revenue CAGR of of the last three years and have that can benefit from the cross- we have even more opportuni- have a body, you’re an athlete.” tions, our influence, our results nine percent, grown EPS at 18 How do you convert revenue finished our last two programs over of NIKE technology?” ties. So we have to make sure That’s actually a quote from Bill are all really very positive. percent, and seen ROIC grow growth into value for your well ahead of schedule. We are When the answer is yes, we buy we are making the most of both. Bowerman. He was the legend- But that doesn’t mean that we from 14 to 22 percent. In other shareholders? currently buying shares under a a company like Cole Haan, which And that requires a superior ary track coach at University are satisfied. words, we’re keeping our promise. For growth to be good, it has to $3 billion, four-year, repurchase uses NIKE Air to redefine the management team, which we of Oregon, and co-founder of be profitable and sustainable. program approved in June 2006, concept of comfort in fashion have. We have the best team the company. That asterisk How do you keep a $16 billion What strengths do the NIKE There are two big levers we pull and we’re well on our way to footwear. in the business. Every leader at means a lot at NIKE. It speaks company fast and nimble? subsidiaries contribute to your to drive health and value into completing that program on or NIKE brings a unique point of to the removal of barriers, the To stay quick and nimble, growth plan? the business. ahead of schedule. This is the benefit of a strong view to the table. Consensus refusal to accept the limitations you have to organize against Our subsidiaries are critical to balance sheet, being able to ag- is important, but not nearly as of others, the right for every- specific opportunities and em- NIKE reaching its potential. They The first is operational excellence. I look at every part of the gressively investigate and act powerful as ideas and debate. body to play and to compete. power people to attack those opportunities. There are some vertically oriented and connect- who takes their competition runners approach training — What is your approach to What’s most inspiring for me outside the product realm. great examples of that at NIKE ing with consumers on a very for granted ends up watching using the iPod and the Inter- Corporate Responsibility? is that CR is not some adjunct — NIKE Golf, the Jordan Brand, deep and meaningful level. them from behind. net to track and share your We’re focusing on four cost of business at NIKE. CR is In the end, great design is about NIKE Skate. performance and connect with areas — labor, climate change, demonstrating an increasing enhancing the human experi- It allows us to be much more That said, NIKE is not a reaction- a global community. That’s environmental design, and return on investment. It’s a ence. In that sense, it’s the job NIKE Golf is now the No. 1 golf surgical and opportunistic in ary company. The gap between entirely new. We knew we were the community. It’s all in our new chance for us to apply our in- of every NIKE employee to be apparel company in the world. every aspect of each business NIKE and the competition is onto something big with NIKE+, Corporate Responsibility report, novation and creativity to help a designer. We’re in the top three brands — product design, demand smaller than the gap between but it has succeeded beyond which is available online at build a better world. And it’s for drivers. We finished the creation, retail presentation, NIKE and its potential. That’s any of our expectations. And www.nikeresponsibility.com. being driven by and embraced I still draw shoes, by the way, but 2006 PGA Tour with the most how we communicate. It really where we spend our time we see new opportunities by employees. these days it’s more for therapy wins in drivers, irons, fairway combines the best of NIKE’s na- — developing and leveraging everyday to expand that con- First, we’re working to help than it is for production. woods and wedges. On the ture — to be bold and fast and our resources to maximize nection between the physical bring about systemic change ON THE JOB . . . year, revenue from NIKE aggressive — with the power our potential. and the digital world. to benefit workers and fac- What is your job? What is your working relation- Golf grew 12 percent to over and leverage of NIKE resources tory conditions in the supply I love my job. I grew up in this ship with Phil? $600 million, and grew pre-tax and efficiencies across the ON CHANGE . . . What are the big opportunities chain — eliminating excessive company. I’ve been here almost Everybody works for somebody, income over 30 percent. categories. That’s a huge com- How is NIKE contributing to in retail? overtime, converting to lean 30 years. I’ve seen the best and I’m glad to work for Phil. petitive advantage for us. the digital revolution? Our industry is playing a lot of manufacturing, and supporting athletes compete all over the We have a long history together, NIKE Golf performs at this Digital connectivity has changed catch-up at retail. If you look at workers’ right to Freedom of world. And for all the time I’ve and we’ve developed a lot of level because they are totally Athlete endorsement costs everything, and that change is sports specialty, for example, Association. been here, I’ve worked shoulder mutual respect and trust. He immersed in the world of continue to rise. Are they still just beginning. The rise of social it’s tough to tell one store from to shoulder with the brightest, gives me a lot of support and their consumers. They have worth it? networks, the connection of another, or one mall from the the most creative people in freedom in my job, and I thrive a complete view of the NIKE Absolutely. Athletes, at their communities and cultures, the next. What kind of choice does the industry. on that. Golf experience, from product best, represent some of our ability to access and share that offer the consumer? So Design is a way of looking at creation all the way through most noble characteristics — information and content is creat- we’re focused on three things the world and seeing problems I am incredibly grateful for my Phil is a tremendous source of presentation at retail. If you passion, commitment, competi- ing a whole new generation that will lead change in retail. history with NIKE, but I don’t inspiration. He really represents could visit the NIKE Golf group, tive fire, being part of a team, of opportunity. NIKE is taking and solutions that others dwell on it. NIKE is a company the values that define NIKE, you’d know what I mean. Every the ability to overcome adversi- advantage of that opportunity. First, we’re working with our that is always looking to the and I share those same values, image you see, every conversa- ty. To me athletes and sports are Unlike some companies, we retail partners to create new ex- can’t see. future. I believe that human po- as do the 30,000 people who tion you hear is all about golf. synonymous in that way. They don’t fear the digital world. We pressions for the NIKE brand and tential is unlimited. So, I believe work here. They talk it, wear it, walk it, play are representatives of universal embrace it, and we’re playing for their stores. The more innova- that NIKE’s potential is unlim- it, they live it. And it shows. values that transcend borders a role in helping to drive some tive presentation we can bring Second, we’re acting on the need ited. And my job is to make sure The same is true for NIKE Skate and unite cultures. of that change. to our athletic specialty partners, to address climate change — that NIKE and our consumers and the Jordan Brand, they are the more differentiated and reducing our CO2 emissions and keep growing. culturally deep and specific, When we help athletes reach It allows us to connect more compelling their stores will be. moving toward carbon neutrality. and set up to capitalize on that. their potential, that process surgically with people and You started as a designer. helps NIKE and consumers reach markets around the world. We’re also developing NIKE- Third, we’re aggressively innovat- Do you miss that? We looked at that model and theirs. So, have athletes lost It helps us share ideas, build owned store concepts that will ing around environmental design. No, because I’m still very saw tremendous potential for relevance for NIKE and its con- communities, tell stories — connect with consumers at the Our Considered Design ethos engaged in design. But I want the rest of the brand. So, we sumers? No. Are we changing to be more immediate and category and brand level in ways creates product that is better for to make a distinction here. organized the company into six the way athletes contribute to more relevant with more I think no other company can do. the athlete and the planet. Design is not merely a func- key categories — , the NIKE story? Yes. consumers. tion at NIKE. Design is a way of running, soccer, men’s training, And we’re expanding our online Fourth, we believe that sports looking at the world and seeing women’s training and sports- Which competitor do you We’re also able to integrate presence. This is a tremendous can change a young person’s problems and solutions that wear. These categories are, fear most? the digital world with the opportunity for NIKE that we life. Let Me Play is a program to others can’t see. In fact, I would in essence, thinking and acting I don’t fear any competitor, physical world. NIKE+ has fun- have not successfully devel- help ensure that every young broaden the definition of design like individual companies, but I respect them all. Anybody damentally changed the way oped, and that’s changing. person has access to sports. to include systems and processes