On Holding CMD 2026

Good afternoon. A very warm welcome to Zurich, to our home, and of course, to our innovation lab. To everyone joining in the webcast, wherever your day is right now, thank you. Thank you for investing time, and thank you for your loyalty to On.

Thank you for being with us this afternoon. Since the very first day, On has been an innovator and a disruptor. We have never stood still nor rested on our laurels, and today is no different. Encouraged by the success that we've seen over the past 16 years, and also encouraged by the rapidly growing number of fans around the world, we have formulated a bold vision for On's future, redefining what a sportswear brand can be. Here's our promise for you for this afternoon. You will leave with three things. First, you will understand the On Premium Playbook that connects everything that On does. Second, you will get the backstory on the big news of the last couple of days and this morning, news about new sports, news about new athletes, and news about capital allocation.

Third, you will see the roadmap to 2029 that turns On into the high-quality earnings compounder in our industry.

Caspar, before we start, let me take you to my kitchen 17 years ago, almost 17 years ago, and show you something. This is where the company you are invested in started. Just look at it, at these weird garden hose pieces, a shaved-off shoe, three guys crouching over a kitchen table and talking about running shoe technology. Everyone said that this market was saturated, dominated, mature. People literally thought we were crazy. Our question was, what if running could feel completely different? Not just better, different. A soft landing, a firm push-off, far less strain on the body. Could the best-performing running shoe actually also be the best-looking one, right?

We definitely believed so, David. I had also brought a spreadsheet to that kitchen. We had studied the market, and we had found something very surprising. Passionate runners were investing more into their gear, into their sport every year. They were basically willing to pay for progress. The most valuable customers in the category. However, there was no brand that catered to them exclusively. I think that was the moment where it all made sense to us. We would disrupt running with innovation, and we would only sell at the premium end. Of course, already back then, we felt that we needed a strong mission, and we all know the power of sport. What we set out to do is to ignite the human spirit through movement. We called this startup, as you know, On, and within 2 years, On was in 10 countries.

Within 3 years, we had won a first world championship title, and after 6 years, On took home its first Olympic medal in Rio. 11 years after that kitchen table, we rang the bell at the New York Stock Exchange. We were the first Swiss consumer brand ever to do so.

17 years later, today, we are doubling down on what has made On special throughout. Disruptive innovation and a premium playbook. What is new is everything around it, the organization, the scale, and the financial discipline to execute at a different level. What has not changed is the founder mindset. Restless. Challenge what exists, invent what comes next. The experience to dream big and take calculated risks.

Before we look ahead, allow us a moment to look back. When we went public, we made you a promise. We were going to build a much bigger company and make it more profitable at the same time. Then we set out to prove it. Today we can say we did. We never stopped dreaming, and we also learned to execute at scale without losing what made On different in the very first place. Think back to 2021. Most people saw in us a running shoe company. We, of course, saw something much broader. But granted, it was mostly still on paper. Back then, our apparel business was an emerging idea. We had just opened our first retail store in the middle of a pandemic, nonetheless. The Asia-Pacific region was an emerging business, and our foothold in elite sports was just taking shape.

Today, On is a full toe-to-hat sportswear brand. Beyond running, we have a strong business in tennis, training, trail, and outdoor, and also with kids, with young movers. On is a highly desired brand on every continent of this planet. We are closing in on 100 retail stores in the cities that matter. As you have seen just this weekend, our athletes stand on podiums almost every weekend of the year. Here is what we promised you 3 years ago in 2023 at our last Investor Day, the targets we would reach in 2026. For top-line sales growth, we had forecasted more than 26% compounded annual growth per year in constant currency. We now expect more than 30%, ahead of our original promise. For gross margin in 2023, we promised above 60%. This year, we expect to achieve above 65%, ahead of our promise.

For adjusted EBITDA in 2023, we promised to deliver above 18% by 2026. Now we expect it to be between 19.5% and 20% this year, again, ahead of our promise. We grew bigger and more profitable, both at the same time. Notice one thing about these numbers. It is not that we grew. Plenty of brands grow. It is that the bottom line structurally grew faster than the top line. That is the foundation for what lies ahead. Today is about the long term. Before we go into the details of our plan, we also want to acknowledge the more recent decisions we have taken that demonstrate On's commitments to our Premium Playbook and also to the discipline it takes in executing it. In the second quarter, we made a choice.

When the market became highly promotional, we could have just followed it down that path. As you know, we have never taken that path. We held back sell-in rather than build inventory in the channel that could potentially compromise On's full price integrity down the line. At the same time, our teams, together with our wholesale partners, have emphasized strong in-store storytelling to drive a very successful back-to-school campaign. With this, we have observed a meaningful uptick in sell-out momentum in U.S. wholesale versus second quarter, notably at the highest ASP and lowest promotional share of our industry. With this, as you saw in the release this morning, we are reiterating our full-year 2026 growth outlook in the low 20% range that we provided at Q2.

The midterm outlook through 2029 we are sharing today is built from that base, and Frank will share further details on the Q3 specific guidance later today.

Kasper, you know this. People ask us all the time, what makes On On? What is the secret behind the success? Here is the honest answer. A single piece of On can be copied. A foam can be reverse engineered.

An athlete can sign with somebody else, right? A beautiful store can be built. What cannot be copied is how the pieces reinforce each other. We call that the On Premium Playbook, and it has five moves. One, exceptional talents and a high risk-taking culture at On deliver breakthrough innovation, Swiss engineering, and our design signature. We make premium products that stand out. Two, these products earn validation from the world's best athletes and talents performing in them. We tell the stories, and preference is earned, not bought. Three, we then wow our customers with a premium experience across our own channels and with carefully chosen partners. Four, we protect full price demand through disciplined commercial execution. This strengthened our best-in-class economics and superior margin profile. Five, we reinvest into the one thing that drives our relentless innovation mindset.