Value-Based Management  Only those who earn a rate of return above their cost of capital will succeed in achieving a sustained increase in corporate value. In keeping with this principle, PUMA has implemented a system of value-based management. Value Contribution  Calculation of CFROI and Value Contribution profitable growth Ø capital cost value added % investment loss-making growth The measurement of return on capital is based on the cashflow return on investment (”CFROI“), which, in simplified terms, is  calculated as the gross cashflow divided by the gross investment base. The gross investment base is the total amount of available funds and assets before accumulated depreciation and  amortization. The absolute value contribution corresponds to the difference, multiplied by the gross investment base, between the return on capital (CROI) and cost of capital (WACC). A positive value  contribution is earned when the return on capital is greater than the cost of capital. Earnings after tax 259.0 179.9 84.7 40.2 17.6 + Depreciation and amortization 19.3 20.1 12.5 8.4 6.8 + Interest expenses 1.3 1.4 2.5 3.6 3.8 Gross cashflow 279.6 201.4 99.6 52.1 28.1 Monetary assets 559.9 367.8 250.0 156.0 152.9 - Non interest-bearing liabilities 287.7 253.0 225.9 154.4 125.8 Net liquidity 272.1 114.9 24.1 1.6 27.1 + Inventroy 201.1 196.2 167.9 144.5 95.0 + Fixed assets at prime cost 135.8 107.6 88.1 77.0 51.9 + Intangible assets at prime cost 46.1 44.6 29.2 28.2 11.0 Gross investment basis 655.1 463.3 309.3 251.3 185.0 Cashflow return on investment 42.7% 43.5% 32.2% 20.7% 15.2% (CFROI) CFROI - WACC 33.9% 35.9% 23.2% 12.1% 7.3% Absolute value contribution 222.3 166.3 71.7 30.4 13.5 million € 2004 2003 2002 2001 2000 28 Foreword | Mission |  Management Report  | Share | Marketing | Consolidated Financial Statements - IFRS - | Report of Supervisory Board | Board of Management