3/8/2019 BSG Decisions & Reports

Projected Year 11 Performance 

Investor Change
Scoring Measures Year 11 Expectation Other Measures Year 11 from Y10
EPS (earnings per share) $2.22 $2.50 Net Revenues ($000s) 515,891 +19.2%
ROE (return on equity) 19.6% 21.0%
Net Profit ($000s) 44,225 +10.6%
Credit Rating A– B+
Image Rating 83 70 Ending Cash ($000s) 4,901 -1,173

North America Europe-Africa Asia-Pacific Latin America

W C T Facility Facility Facility Facility
Industry Company Industry Company Industry Company Industry Company
Prior-Year Compensation and Productivity Data Average I Average I Average I Average I
Workforce Base Wages 34,000 34,000 20,400 0 12,000 12,000 12,000 0
Compensation Incentive Pay 4,650 4,650 2,790 0 1,573 1,573 1,574 0
(toal $ per year)
Fringe Benefits 3,007 3,007 1,800 0 1,536 1,536 1,500 0
Total Regular Compensation 41,657 41,657 24,990 0 15,109 15,109 15,074 0
Overtime Pay (included incentives) 6,443 6,443 0 0 3,391 3,391 0 0
Total Compensation 48,100 48,100 24,990 0 18,500 18,500 15,074 0
Incentive Pay as a % of Regular Compensation 11.2% 11.2% 11.2% 0.0% 10.4% 10.4% 10.4% 0.0%
Workforce Productivity (pairs per worker per year) 5,000 5,000 3,500 0 3,500 3,500 3,500 0
Minimum Wage = 34,000 Minimum Wage = 20,400 Minimum Wage = 12,000 Minimum Wage = 12,000
Compensation Base Wage (% change from prior year) +1% 34,340 0% 0 +1% 12,120 0% 0
and Training Incentive Pay ($ per non-rejected pair) $ 1.00 4,858 $ 0.00 0 $ 0.50 1,662 $ 0.00 0
of Production Fringe Benefits ($ per year) $ 3000 3,007 $ 0 0 $ 1500 1,536 $ 0 0
Workers
Total Regular Compensation ($ per year) 42,205 0 15,318 0
Overtime Pay (includes incentives) 2,827 0 2,069 0
Total Compensation ($ per year) 45,032 0 17,387 0
Incentive Pay as % of Regular Comp. 11.5% 0.0% 10.8% 0.0%
Best Practices Training ($ per worker) $ 3500 per worker $ 0 per worker $ 3250 per worker $ 0 per worker
Materials Cost Impact (from cumulative
BP expenditures) Std -0.05 Sup -0.10 Std 0.00 Sup 0.00 Std -0.05 Sup -0.10 Std 0.00 Sup 0.00

Supervisory Staff (ratio of production workers to supervisors) 50 to 1 Staff = 17 0 to 1 Staff = 0 50 to 1 Staff = 24 0 to 1 Staff = 0
Ind. Avg. Co. I Ind. Avg. Co. I Ind. Avg. Co. I Ind. Avg. Co. I
Prior-Year Supervisory Compensation ($/year/supervisor) 60,000 60,000 36,000 0 25,000 25,000 25,000 0
Minimum Salary = 60,000 Minimum Salary = 36,000 Minimum Salary = 25,000 Minimum Salary = 25,000
Supervisory Compensation (% change in salary, benefits, and bonus) 0% 60,000 0% 0 0% 25,000 0% 0

Projected Workforce Productivity (pairs per worker in Y11) 4,939 0 3,482 0

Number of Workers Employed (given branded production entries) 860 0 1,221 0

$000s $/pair $000s $/pair $000s $/pair $000s $/pair

Cost of Labor Production Base Wages 29,532 6.62 0 0.00 14,799 3.15 0 0.00
Associated Workers Incentive Pay 4,178 0.94 0 0.00 2,029 0.43 0 0.00
with Footwear Fringe Benefits 2,586 0.58 0 0.00 1,875 0.40 0 0.00
Production Overtime Pay 2,431 0.54 0 0.00 2,526 0.54 0 0.00
Total 38,727 8.68 0 0.00 21,229 4.52 0 0.00
Per-pair figures
not adjusted for Best Practices Training Expenditures 3,010 0.67 0 0.00 3,968 0.85 0 0.00
rejected pairs. Supervisory Compensation (salary + benefits) 1,020 0.23 0 0.00 600 0.13 0 0.00
Total Cost of Production Labor 42,757 9.58 0 0.00 25,797 5.50 0 0.00

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