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RESPONSE TO ALLEGATION REGARDING PT. TUNTEX GARMENT INDONESIA:

PT. Tuntex Garment Indonesia closed on March 31, 2023. PUMA has not stopped placing orders with PT. Tuntex Garment Indonesia and our business with this supplier was stable before the closure. Tuntex’s management decided to close this factory for business reasons and PUMA orders are now produced at Tuntex’s sister factory in Central Java.

The factory followed the legal procedure for announcing the factory closure to trade unions and workers. A collective agreement has been signed between trade unions and the factory management on a severance amount beyond the labor laws requirement. All the necessary steps were followed by the factory management for the 1,163 workers to receive their unemployment pension.

RESPONSE TO ALLEGATION REGARDING PT HORN MING INDONESIA:

While PUMA’s start to 2023 had been successful, the market environment was challenging, characterized by geopolitical conflicts, volatile currencies, macroeconomic headwinds, and muted consumer sentiments as well as elevated inventory levels in the marketplace which led to a decrease in our order book for footwear.

PUMA followed up closely with PT. Horn Ming Indonesia to ensure that the collective agreement signed between unions and management was followed and that the employment termination as well as all severance payments were according to the local regulation for the 571 laid-off workers.

As of today, 74 out of 571 workers have been re-hired. In 2024, our order book has been stable and aligned with the forecast provided to Diamond, parent company of PT Horn Ming. Diamond remains a key partner for PUMA, and Indonesia remains a key production country.

[The full response is attached]