On (ONON) investor relations material

Strategic vision and future roadmap

• Outlined a bold vision to redefine the sportswear industry, anchored by the On Premium Playbook and a founder-driven culture of innovation and risk-taking.

• Roadmap to 2029 targets transformation into a high-quality earnings compounder, with disciplined execution and expansion into new sports and categories, including Football and Golf.

• Emphasized disruptive innovation, premium positioning, and relentless focus on consumer relevance and experience, targeting the Movement Class as a new global consumer segment.

• Addressable market defined by the Movement Class, focusing on performance, lifestyle, and apparel, with selective entry into new sports.

• Plans to deepen consumer engagement through DTC channels and strategic wholesale partnerships.

Financial guidance and growth targets

• Expects to add over CHF 2.1 billion in net sales by 2029, reaching approximately $7 billion in revenue at current rates, with high-teens constant currency net sales CAGR.

• Targets gross margin above 65% and adjusted EBITDA margin of at least 22%, with EBITDA CAGR above 20% for 2026-2029.

• Plans to maintain premium profitability through disciplined investment and economies of scale, growing the bottom line faster than the top line.

• Announced a $1 billion share buyback framework through 2029, reflecting strong cash generation and excess capital.

• Will transition to USD reporting as early as 2027 to better align with business economics.

Business development and category expansion

• Expanded from a running shoe company to a full sportswear brand, now present in tennis, training, trail, outdoor, and kids’ categories, with growth led by Run, Sneaker, and Apparel verticals.

• Entered football and announced plans to enter golf in 2027, leveraging innovation and elite athlete partnerships for disruptive market entry.

• Apparel is the fastest-growing category, with a focus on winning with female consumers and tripling the business over the next three years.

• Retail footprint to grow from 80 to 180 stores by 2029, with a 50/50 D2C and wholesale mix planned.

• Wholesale growth driven by deeper partnerships, new verticals, and premium positioning, with significant runway in key accounts and new sports.