European Snowboard Market season 2005/2006

winter 2004/2005 Reminder Sell in figures estimation : country Switzerland France Germany Austria Norway Italy UK Sweden Russia Benelux Spain Finland Czech republic Poland Slovenia Denmark Hungary Serbia Montenegro

boards 78400 70500 63900 52250 27000 22500 20000 18900 18000 16000 17000 13500 10500 7700 3300 2250 2750

Croatia Kosovo Romania Greece Slovakia Bulgaria TOTAL Ratio

1650 1650 1650 1000 1100 330 453480 1

1650

boots 86240 77550 70290 57475 29700 24750 30000 20790 19800 17600 18700 14850 11550 8470 3630 2475 3025

Bindings 82320 74025 67095 54863 27000 23625 21800 18900 18900 16800 17850 14175 11025 8085 3465 2363 2888

1815

1733

1815 1815 1815 1100 1210 363 506828 1,11

1733 1733 1733 1050 1155 347 474659 1,05

winter 2005/2006 Sell in figures estimation :

Yes ! We increase again ! Yop..

country switzerland germany france Austria italy russia norway UK spain sweden finland benelux Czech republic poland slovania hungary denmark romania slovakia kosovo Serbia montenegro croatia greece bulgara TOTAL Ratio

Boards 0506

Boots 0506

Bindings 0506

69530 69151 66225 52319 30563 24750 24313 20250 20175 17046 16214 14650 12775 8675 2850 2844 2375 1450 1428 1350 1325

78312 71007 76959 57041 35995 31620 25895 28700 22454 22261 17895 17848 11742 10234 3278 3451 3150 1526 1424 1389 1566

78068 69300 73100 53994 34903 25450 24150 20645 19121 16584 14914 15270 12614 9546 3300 3066 2481 1156 1594 1312 1404

1200 763 340 462559 1

1466 1140 485 526837 1,14

1266 1088 348 484674 1,05

Comparison of Sell-In 0506 vs 0405 country

sell in 0506 vs 0405 Boards -8870 switzerland -4275 france 5251 germany 69 Austria -2688 norway 8063 italy 250 UK -1854 sweden 6750 russia -1350 benelux 3175 spain 2714 finland 2275 Czech republic 975 poland -450 slovania 125 denmark 94 hungary -325 Serbia montenegro -450 croatia -300 kosovo -200 romania -238 greece 328 slovakia 10 bulgara 9079 DIFFERENCE

% -11% -6% 8% 0% -10% 36% 1% -10% 38% -8% 19% 20% 22% 13% -14% 6% 3% -20% -27% -18% -12% -24% 30% 3% 2%

sell in 0506 vs 0405 Boots -7928 -591 717 -435 -3805 11245 -1300 1471 11820 248 3754 3045 192 1764 -352 675 426 -249 -349 -426 -289 40 214 122 20009

% -11% -1% 1% -1% -15% 25% -7% 7% 24% 2% 19% 19% 1% 25% -11% 27% 15% -16% -35% -26% -29% 4% 24% 41% 4%

sell in 0506 vs 0405 Bindings -4252 -925 2205 -869 -2850 11278 -1155 -2316 6550 -1530 1271 739 1589 1461 -165 119 178 -329 -466 -421 -576 38 439 2 10015

% -5% -1% 3% -2% -11% 48% -5% -12% 35% -9% 7% 5% 14% 18% -5% 5% 6% -19% -27% -24% -33% 4% 38% 1% 2%

Decreasing markets in Europe season 0506 : Switzerland, France, Scandinavian countries, Benelux Reasons : 9Economy (-) 9Freeski 9Snowboard less trendy 9Infrastructures, practice places 9Sport access, teaching 9Lack of innovation 9Sports Shop attitude 9Lack of events 9Internal competition inside ski companies (4 in the 5 European leading brands) Increasing markets in Europe season 0506 : Germany, Italy, Russia , East countries Reasons : 9Economy (+) 9Snow falls 9New participation to the sport 9Snowboard trendy

Sell through 0506 compared to 0405 in Europe :

Sell through in East countries was in slight decrease due to Weather really cold during a couple of weeks

c ountr y S witz e r lan d Fr an c e Ge r m any A us tr ia N or way Italy UK S we de n R us s ia B e ne lu x S pain Finland C z e c h r e public P oland

S e ll th r oug h s ituation + + = + + + + + +

Market share Boards winter 0506, Sell in tendencies :

switzerland germany france Austria italy russia norway UK spain sweden finland benelux Czech republic rest of EU total

69530 69151 66225 52319 30563 24750 24313 20250 20175 17046 16214 14650 12775 24599 462559

15,0% 14,9% 14,3% 11,3% 6,6% 5,4% 5,3% 4,4% 4,4% 3,7% 3,5% 3,2%

switzerland

market share EU Boards

germany

france

4% 4%

4%

3% 3%

Austria

5%

16%

italy

russia 15%

norway

UK 4% 5%

spain

sweden

5% 7%

2,8% 5,3% 100,0%

14% 11%

finland

benelux

Czech republic t f EU

F

CH

G

Market share boots winter 0506, Sell in tendencies :

switzerland france germany Austria italy russia UK norway spain sweden finland benelux Czech republic rest of EU total

78312 76959 71007 57041 35995 31620 28700 25895 22454 22261 17895 17848 11742 29109 526837

14,9% 14,6% 13,5% 10,8% 6,8% 6,0% 5,4% 4,9% 4,3% 4,2% 3,4% 3,4%

switzerland

market share EU boots

france germany Austria

4%

3%

3% 2%

6%

16%

italy russia

4%

15%

UK norway spain

5%

sweden

5% 6%

2,2% 5,5% 100,0%

13%

7%

11%

finland benelux Czech republic rest of EU

F

CH

G

Market share bindings winter 0506, Sell in tendencies :

switzerland france germany Austria italy russia norway UK spain sweden benelux finland Czech republic rest of EU total

78068 73100 69300 53994 34903 25450 24150 20645 19121 16584 15270 14914 12614 26561 484674

16,1% 15,1% 14,3% 11,1% 7,2% 5,3% 5,0% 4,3% 3,9% 3,4% 3,2% 3,1%

switzerland

market share EU Bindings

france germany

3% 4% 4%

3%

3% 3%

5%

Austria 17%

italy russia 16%

norway UK spain

5%

sweden

5% 7%

2,6% 5,5% 100,0%

11%

14%

benelux finland Czech republic t f EU

F

CH

G

Sales Snowboard 0506 Vs 0405

90000

80000

70 0 0 0

saison 0405 60000

50 0 0 0

saison 0506 40000

30000

20000

10 0 0 0

0

bulgara slovakia greece romania kosovo croatia Serbia montenegro hungary denmark slovania poland Czech republic finland spain benelux russia sweden UK italy norway Austria germany france switzerland

Sales Boots 0506 Vs 0405

100000

90000

80000

season 0405 70000

60000

season 0506 50000

40000

30000

20000

10000

0

bulgara slovakia greece romania kosovo croatia Serbia montenegro hungary denmark slovania poland Czech republic finland spain benelux russia sweden UK italy norway Austria germany france switzerland

Sales Bindings 0506 Vs 0405

90000

80000

season 0405 70000

season 0506 60000

50000

40000

30000

20000

10000

0

bulgara slovakia greece romania kosovo croatia Serbia montenegro hungary denmark slovania poland Czech republic finland spain benelux russia sweden UK italy norway Austria germany france switzerland

Turnover segmentation 0506 :

19%

50%

Boards Boots Bindings

31%

In turnover

As for the ski, the board is the main part of the turnover (50 % ). But oppositely to the ski, a snowboard consumer will spend the same amount for the boards than the pack boots and bindings.

Brand ranking Estimation , season 2005/06

ranking 1 2 3

4 5 6 7 8 9 10

boards Burton Nitro Quiksilver / Rossignol/ Roxy K2 / Ride Salomon Nidecker Santa Cruz / F2 Head

bindings Burton Flow Drake

boots Burton Salomon Northwave

helmets Giro Red Protec

Ride Salomon Nidecker Nitro

Nitro 32 Vans DC

Cebe Leedom Uvex Scott

Rossignol/ Nidecker Roxy Forum Head Head Flow-Crazy K2-Crazy Flow-RideCreeksCreeks- Dee LuxeQuechua Quechua Quechua

accessories Da Kine Red

Brands : market share global turnover Europe (estimation) Season 0506

other brands 27%

Burton 30%

Burton

K2 group

Quiksilver - rossignol Nitro 10% Salomon 10%

Salomon

K2 group 12%

Nitro

other brands

Quiksilver - rossignol 11%

Brands : market share global Turnover Europe Season 0405 burton

other brands 27%

burton 27%

nitro Quiks ilver-rossignol K2 group

Salom on 12% K2 group 11%

nitro 9% Quiksilver-ross ignol 14%

Salom on other brands

Board price segmentation season 0506

< 300 €

300 €< X< 500 € 51,2%

38,0%

freecarve freeride 6,4 38,0% 42,3

>500 €

boots

< 80 €

10,8%

0,0%

13,0%

freestyle 51,2% 32,5

backcountry 5,1

divers

10,8%

30 30 < 300 € 30 10 27

Based on retail prices information

Kids 300 €< X< 500 €

10 2>500 € 12 0 5

Boards

< 300 €

300 €< X< 500 €

>500 €

%

38,0

51,2

10,8

Boots price segmentation season 0506

51,2%

10,8%

13,0%

freeride

boots prices segmentation season 0506 freestyle backcountry divers

22,3%

64,7%

42,3

32,5

5,1

13,0%

< 80 €

Kids

Based on retail prices information

22,3%

80 € < X < 150 €

10

>150 €

boots

< 80 €

80 € < X < 150 €

>150 €

%

13,0

22,3

64,7

64,7%

Riding type , Season 0506 season 0506

5,9%7,4% freecarve

freeride

37,7%

freestyle

49,0%

Alpin

20%

4%

6%

freecarve

freeride

freestyle

backcountry

7,4%

49,0%

37,7%

5,9%

reminder season 0405

Alpin / freecarve Backcountry / Freeride Freeride / Freestyle

70%

backcountry

Freestyle technique

divers

User/ Sex segmentation

season 0506

Boys

4,30% 25,30%

Girls

70,40% Kids

User/ Sex segmentation : details

Girls market: 9Was one of the more dynamic segments but seems to be slowing down at the moment 9Still growing because women are changing more frequently 9Styles ,designs and prices are important Kids market (25

Lifestyle

– – –

Different, extreme Copy idols Read snowboard magazines

– –

Sport addicted Read snowboard magazines

Buying factors

– –

Brand important Buy what cool people ride Low price sensitivity, but limited budget

–

Good Price/Quality ratio Safety Facts

–

Buying place

– –

Snowboard shop Skate shops

Adult beginners / Coming from ski

Adults with experience

– –

– –

Traditional ski shops/ sport shops established snowboard shops

–

Renting snowboards

>25

– – –

Price sensitive Safety Brand and quality less important

–

– –

Sport shops Big boxes

–

– –

New board every season Safety Quality

Ski resorts Sport shops /skis shops/snowboard shops

Users number :

6 millions snowboarders over Europe in 2003/04 13 millions snowboarders over the world : 9 6 millions over the US 9 6 millions over europe 9 1 million over Asia (Estimations done by WFSGI : world federation of the sporting goods industry) The best place to ride over europe : France, Austria, Germany, switzerland

Main european Brands

There will be over 80 hard goods brands on the european market by 0607 season, this is a major increase over the last three years : 32 ; Albin ; Allian ; Amplid ; Apo; Arbor ; Atomic ; Bataleon; Bent Metal; Beyond Snow Blacksmith ; Bohéme ; Black hole ; Burton ; Capita ; Celsius ; Chiemsee ; Cizen ; Clone ; Crazy creeks ; Dee luxe ; DC shoes ; Drake ; Dupraz ; Elan ; Elfgen ; Extrem ; F2 ; Fanatic ; Flow ; Forum ; Gnu ; Hammer ; Hot ; HBS ; Head ; Icon ; Imperium ; Jeenyus ; K2 ; Keissel ; Lib Tech ; Nidecker; Nitro; Northwave ; Option ; Oxess ; Palmer ; Phénix ; Phiokka ; Prior ; Quechua ; Ride ; Rome ; Rossignol ; Roxy ; Salomon ; Santa Cruz ; Sapient ; SP ; Scott ; Static ; Smokin ; Swell Panik ; Swoard ; Union ; Unity ; Vans ; Venue ; Virus ; Voilé ; Volkl ; winterstick . . .

Negative market influencies

1. primery industry concerns : 9situation of distribution networks , commercial opportunism from sport shop chains 9price dumping , OEM 9dry weather till November 9general economical situation (west of europe) 9declining interest on snowboard (junior go to FreeSki , experienced adults are practicing less ) 9lift ticket costs

2. statement of the distribution, concerns : 9Proshops are up, sports shops are down, chains are up 9OEM brand and grey market is growing seriously (till 31%of sales volume in some boots market ! ) 9Development of packages 9Number of competitor (Up) Vs number of shops (Down) 9Lack of transparency into brand segmentations

Boards production Site winter 0405 . reminder European production estimation 2004 : around 985.000 snowboards 1. Austria OLDENBURG for Burton,… around 20.000 pieces ATOMIC for Atomic, Quechua,… around 25.000 pieces ALLACTION for Palmer,… around 30.000 pieces KEIL for Burton around 110.000 pieces GST for forum, S.Cruz,F2,Jeenyus,Flow, OEM,… around 115.000 pieces PALE for Nidecker, Head, Crazy creek, OEM, … around 180.000 pieces 2. Spain : ROSSIGNOL for Rossignol, Hammer, Dynastar, Roxy, ,… around 180.000 pieces 3. Slovenia : ELAN for Elan, Nitro, Option, Sims,Salomon,Scott, Head,…around 180.000 pieces 4. Germany : VOLKL for Volkl, Nitro,…around 45.000 pieces 5. Poland: NODILE for Burton, Fanatic,… around 30.000 pieces 6. Bulgaria : PAMPOROVO for Oem,…around 25.000 pieces 7. France :

Boards production site winter 0506 : Ø Ø Ø Ø Ø Ø

China XXXXX (boards, boots, bindings) Tunisia X (boards) Spain X (boards) East countries XX (Boards,boots) Austria XXXX (Boards) Italia XX (Boots)

SALOMON for Salomon around 25.000 pieces 8. Suisse : NIDECKER for Nidecker around 20.000 pieces

tendencies for future: CHINA

Influences from other markets (freeski, outdoor…) :

9Inside the alpine arc, Freeski is continuing to develop in using the snowboard imagery. 9Thanks to the freeski, the freestyle activity is now more popular (snowboard freestyle is too core for the masses). 9Freestyle ski is helping the snowboard lobby for ski resort’s infrastructure development 9Freeski has not developed its own identity and has absorbed snowboard “codes” instead of bringing some new ones 9Freeski is good for the positive public image of skiing and snowboarding while having a limited impact on sales, as far. 9New comers are going directly into Freeski 9More Freeskiers come from the alpine skiing than from snowboarding

SWOT of the market (Strengh, weakness, opportunity, threats) Strengh

Weakness

•strong snowboard image •part of the snow culture •slowly growing again •dynamism from the US and Asian market : attract new comers on the market •clear brand positioning •a lifestyle is born !

•lack of ski resort implication •lack of innovation and concepts •lack of SB instructor degrees (france/austria) •lack of infrastructure despite snowpark projects •strong house brands •cost for lift tickets •nothing is done to keep motivated experienced adults •Lack of product segmentation (not clear for users)

Opportunity

Threats

•youth •Women market •multi snow sports practice •Olympic image •new medias •lifestyle development •New brands

•consumer focus dispersal •climate changes •missing new innovative shops •shop motivation (sport shop chains) •Economical situation in west Europe •Lack of unity between the market brands

Forecast Sell In 2006/07 :

9Decrease confirmation in the Alpine arc and Scandinavian countries 9Increase confirmation in East countries 9Global Trend : from Stable to + 5%

This survey has been realized with the fair collaboration of : • 32 europe •Burton europe •Flow europe •K2/ Ride/ Morrow europe •Lib tech / Gnu/ Bent Metal europe •Nitro international •Quechua international •Quiksilver/ Roxy snowboard international •Rossignol snowboard international •Salomon international Thanks for this collaboration

THANKS FOR ATTENTION…

…KEEP RIDING !

Contact informations : Boardsports Consulting Rémi FORSANS Mobile phone :+33626914039 Email: [email protected]