Modivo (MDV) Status Update summary

Strategic partnership and business model evolution

• CCC and Authentic Brands Group (ABG) have deepened their partnership, with Jamie Salter, ABG's CEO, joining CCC's Supervisory Board and leading its Strategy and Development Committee.

• Over 2 million ABG-branded products have been sold by CCC, with ABG brands now accounting for 11% of CCC's sales revenue; Reebok alone represents nearly 10% and saw a fivefold increase year-over-year.

• The licensing model enables CCC to offer globally recognized brands with high intake margins (around 74% pre-discounts and license fees), while ABG gains access to the Central and Eastern European market.

• CCC and ABG are working on expanding their collaboration, with 12 licenses signed and 4 more in progress, aiming for further sales and margin growth.

• ABG's approach focuses on best-in-class partners by category and territory, leveraging data and global retail learnings to drive growth and efficiency.

Brand portfolio and growth outlook

• ABG manages over 50 brands, including Reebok, Hunter, and Champion, with global retail sales expected to reach $32 billion this year.

• Reebok is experiencing rapid growth under ABG, with sales rising from $3.7 billion to $5.4 billion in its first year post-Adidas transition and selling 65M+ pairs annually.

• Hunter, a premium brand with British heritage, generates $186M+ in annual revenue and is being repositioned for global expansion, targeting 100% growth in the next 12 months.

• The Shaq brand emphasizes affordability and family values, with over 250 million pairs sold, a focus on expanding into apparel and accessories, and a social media reach exceeding 83M followers.

• ABG is actively seeking new brand acquisitions, with Champion expected to rival Reebok in scale, and sees significant future opportunities for large-scale brand additions.

Operational and market strategy

• CCC's investment in technology and distribution systems positions it as a leading retailer, enabling rapid adaptation and efficient omnichannel operations.

• The partnership is mutually beneficial, with CCC serving as a model for ABG's global private label-to-brand conversion strategy.

• Both companies are exploring joint ventures and potential co-investments in brands, focusing on high-margin, royalty-driven business models.

• CCC's private label brands remain important, but the focus is on expanding licensed global brands for international growth.

• There is strong potential for CCC and HalfPrice store formats to be licensed and expanded internationally, leveraging their proven retail concepts.