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OUR VISION To build a family of the most admired performance and lifestyle brands on earth. — We are a family of 15 brands covering all ages, passions and pursuits with a presence in virtually every corner of the world. — We are focused on our consumer and driven by innovation – all with a mindset on growth. — We are committed to expanding the global footprint of our brands. — We are building deep connections to our consumers through our consumer-direct initiatives. — We are dedicated to delivering superior financial results for our shareholders. to our shareholders ANNUAL REPORT 2014 To Our Shareholders n 1883, the company that would come to be known as Wolverine Worldwide was founded Iin Rockford, Michigan. Over the past 132 years, Wolverine has grown from a small footwear manufacturer to a global lifestyle company with a portfolio of 15 dynamic brands and a presence in virtually every corner of the world. While much has changed over the years, a few things have remained constant – our passion for the people who wear our brands, our relentless pursuit of innovative ideas and products, and our mindset focused on growth. Wolverine’s continued success is driven by our ability to stay true to our simple mission: we empower, engage and inspire our consumers – every step of the way. Blake W. Krueger Looking to the future, we are focused on delivering Chairman of the Board, Chief Executive Officer and President compelling, innovative products and continuing to deepen our emotional connections with consumers by telling brand stories that resonate Financial highlights from the past year include: with who they are and whom they aspire to be. With our consumers firmly centered at the heart n Delivering record revenue of $2.76 billion, of everything we do, we are confident we have the representing growth of 2.6% versus the prior right strategies in place to build on our long and year. Momentum accelerated in the fourth consistent track record of success. quarter, as we delivered 9.2% quarterly growth. As I reflect on the past year, I am proud of n Achieving increased adjusted diluted earnings everything the team achieved, but more per share to $1.62, representing strong growth importantly, I am excited by the array of global of 13.3% over the prior year’s adjusted diluted opportunities ahead. earnings per share of $1.43. Fourth-quarter adjusted diluted earnings per share increased FISCAL 2014 over 35%. I am very pleased to report that the Company n Generating record operating free cash flow of delivered another year of record financial results $279.8 million, enabling us to reduce interest- in 2014. Fiscal 2014 marked the Company’s fifth bearing debt by approximately $250 million, consecutive year of record revenue – with growth including $200 million of accelerated, voluntary coming from virtually every region of the world and principal payments during the year. Our net from the majority of our brands. This solid growth, debt stood at $677 million at year-end, down coupled with disciplined focus on execution, drove almost $500 million since the closing of our exceptional earnings leverage and another year of transformative acquisition in 2012. record adjusted earnings. Our record cash flow generation in 2014 enabled us to substantially With the books closed on another record year, reduce our interest-bearing debt – well ahead of we now turn our attention to 2015. The coming our obligations and internal projections following year brings with it tremendous opportunities for the 2012 acquisition of our newest brands – Sperry®, the Company, and our team is both energized and Saucony®, Keds® and Stride Rite®. motivated to continue building our brands around the world. Wolverine Worldwide ANNUAL REPORT 2014 OPPORTUNITIES AHEAD n Executing against our business model, which As a Company, we remain focused on driving mitigates the risks associated with an ever- growth by leveraging our diversified portfolio changing global marketplace. of global lifestyle brands – covering all ages, One of the pillars of our success throughout the genders and most product categories. Our Company’s 132-year history has been our team. initiatives include: We invest in our people to ensure they have n Maintaining a fanatical focus on innovation, the tools and resources necessary to achieve especially product creation. their personal goals, contribute to the collective success of the Company, and, ultimately, increase n Deepening connections with consumers and shareholder value. In 2014, we both added key new creating strong, global demand for our products. talent to the organization and recognized internal n Expanding and strengthening our extensive team members with well-deserved promotions to global distribution footprint – over 200 countries better position us for accelerated future growth. and territories. Today, I believe that we have the deepest and most talented team in the Company’s long history. n Continuing to invest in consumer-direct initiatives, specifically digital investments that Just as we believe our team is positioned well for support the omnichannel experience. the future, our product and marketing engines are hard at work to drive even more excitement in the n Expanding the lifestyle opportunities for our upcoming seasons. We pride ourselves on having largest brands. a deep product pipeline filled with compelling n Building the very best team in the industry. products that are designed with a keen focus on Source: Bloomberg L ooking to the future, we are focused on delivering compelling, innovative products and continuing to deepen our emotional connections with consumers by telling brand stories that resonate with who they are and whom they aspire to be. our consumers. The Wolverine family of brands has on telling stories that bring our brands to life in our a long history of introducing innovative products consumers’ hearts and minds. aimed at capturing the imagination of consumers around the world: Consumer engagement continues to change at a frenetic pace, and we want our brands to be n Paul Sperry conceived the first boat shoe in 1935. at the forefront of that evolution. We use sound consumer insights and develop meaningful stories n Hush Puppies® transformed casual footwear to communicate with our consumers in a variety in 1958. of ways. Our engagement is not simply a one-way n Merrell® introduced the Jungle Moc™ in 1998. monologue – today’s consumers are active in the discussion. We have over five million Facebook fans n Wolverine® revolutionized comfort technology in and nearly 350,000 Twitter followers across the work boots with DuraShocks® in 1991. brand portfolio. Last year, our consumers posted This past fall, Saucony® brought to market the over 16,000 reviews to our websites. Our obsession ISO-Fit™ series, the latest effort in game-changing with consumers is what drives us at Wolverine, and, innovation for runners around the world, and, this each day, we wake up determined to meet and spring, Merrell® will once again look to raise the bar exceed their expectations. in the performance outdoor footwear category with At the same time, consumer expectations and the launch of the new Capra™ collection. Looking the shopping experience are evolving at a pace ahead, our global product teams are focused many of us could not have imagined a few years on bringing the next game-changing collections ago. Technology – particularly the rise of digital to market. and mobile – has dramatically reshaped the retail Our brand portfolio is diverse and benefits from landscape. Consumers have embraced the ease over 1,000 years of collective brand heritage. and convenience of online shopping. Today, they The Wolverine brands empower and inspire our demand a sophisticated, omnichannel shopping consumers to pursue their dreams. We view experience and have the available technology to ourselves as global brand builders – not simply make informed shopping and purchasing decisions as brand owners – and, as such, support our – virtually anywhere and at any time. Given this sea brands with consumer-centric marketing that is as change, it is paramount that we evolve and invest compelling as our products. We are always focused to meet the changing dynamics of how consumers interact with, and shop for, our brands. Moving forward, we plan to make even more significant investments in our digital consumer-direct initiatives – investments in systems, capabilities and people. We believe having a strong consumer-direct operation – where our consumers can engage directly with us – is critical to the long-term vitality of our brands and will ultimately benefit every channel of distribution. To capitalize on the momentum and amazing opportunities for our brands around the world, we plan to significantly increase brand-building investments in the coming years. These investments in consumer-demand creation, omnichannel initiatives and international expansion, are all focused on elevating brand awareness, deepening consumer connections and driving sustained growth for the Company’s brands. We believe these investments are the next steps towards achieving our vision… To build a family of the most admired performance and lifestyle brands on earth. We are confident it is the right time for these investments and that they will position our Company for accelerated global growth and drive significant shareholder value. IN CLOSING The start of 2015 marks the end of one of the most transformational periods in the Company’s history. Over the past two years, we essentially doubled the size of the Company, added new talent to our already strong team, and expanded our distribution and operational platforms around the world. Now, looking to the future, the global potential for our brands is tremendous and we intend to focus our efforts to capitalize on the significant opportunities ahead. Our performance in 2014 is a testament to our team’s disciplined execution against our global, diversified business model – a model that has proven capable of delivering consistent results in virtually any macroeconomic and retail environment.