Summing it all up: We are in great shape and well prepared to fully compensate the cost pressure
that we and the entire industry will be facing in 2016 as a result of a surge in input costs due
to labour cost increases in our supply chain as well as the strong appreciation of the US dollar
against most major currencies. But make no mistake, the measures we have implemented to
counterbalance this year’s macroeconomic headwinds are not oriented towards the short term as
we will definitely not sacrifice the long-term development of the Group and the desirability of our
brands for short-term margin optimisation. In fact, the opposite is true. All of the initiatives aiming
to support our margin development in 2016 will sustainably increase our operating efficiency and
significantly strengthen our foundation for profitable growth in the future. At the same time, in line
with our firm belief that the desirability of our brands and products will be the decisive factor to
significantly increase revenues and profits over time, we will further increase our brand-building
investments this year.