The A - Team

1. The A - Team Alex Bojinov Adam Hoque Aderinsola Oyenuga Doug Fleury Wilson Sales

2. Oakley Inc.

3. Company Profile • Founded in 1975 • Headquartered in Foothill Ranch, CA • Leader in sporting goods industry • Market Cap $1.22 B

4. Mission To build long-term value for the Company's shareholders and to assure the vitality of the Company for its customers, employees and the other individuals and organizations who depend on the Company.

5. Company Objectives • Continue to strengthen the Oakley brand and the brands in the Oakley, Inc. portfolio • Build solid business platforms that are capable of driving long-term profitable growth • Make clear steps towards delivering against a long-term financial model that adds ROIC as a key measure • Increase consistency in meeting our articulated goals

6. Our Products • Upscale eyewear (sunglasses and prescription eyewear) • Athletic shoes and apparel • Watches and accessories

7. Our Consumers

8. Elite Competitor Sport is Life Sports Fanatic Sport is Culture Forward Thinkers THE BEST WAY DEFINED THRU BADGING WITH INDENTITY INFLUENCED DEFINED BY THEIR WAY THEIR DEDICATION THEIR ALLEGIANCES THRU THE CULTURE BEING FIRST TO SPORT THEY FOLLOW

9. Company Strategy What is Oakley’s Business Strategy ???

10. Product Differentiation • Strong, iconic brand • Deep and wide authenticity • Superior product with a defensible advantage • Unique design point of view • Loyal consumers, athletes, team • Culture of excellence, willingness to experiment, willingness to change

11. External Environment • Industry Positioning • Global Environment • Porter’s Five Force Analysis

12. Industry Positioning • Consumer Product Manufacturers • Eyewear manufactures (primary) • Apparel • Sporting Goods & Equipment • Athletic/Outdoor Gear & Apparel • Retail • Apparel & Accessories Retail • Footwear and Related Products Retail

13. Major Events • Motorola and Oakley join forces in Unveil ‘O ROKR Eyewear • New Vice President and Managing Director of Oakley Europe are appointed • Oakley acquires Oliver People • Oakley’s Strategic Initiatives • Oakley considers dropping most shoe lines and revamp apparel

14. The Broad Picture • Americas • 2 subsidiaries in 4 countries • 6 distributors in 16 countries • EMEA • 4 subsidiaries in 31 countries • 17 distributors in 35 countries • Asia Pacific • 2 subsidiaries in 6 countries • 10 distributors in 9 countries

15. Market Focus: “Mature” and Emerging • Learning • Europe Big 5: Italy, France, Spain, UK, Germany • Emerging markets: Greece, Turkey, some Eastern European countries • Growth Opportunity • Increase penetration/distribution in “mature markets” (currently NOT mature for Oakley) • Develop different business models in emerging markets (local exclusive retail partners, distributors…)

16. Porter’s Five Forces and Oakley • Threat of entry • Threat of rivalry • Threat of substitutes • Threat of suppliers • Threat of buyers

17. Internal and Competitive Analysis • Brand Strengths • Leader in eyewear technology • Strong, authentic positioning • Ability to transcend multiple sport categories • Iconic products • Our consumers trust us

18. Internal Recourses • Excellent Leaders • Jim Jannard (Founder in 1975, former CEO and current Chairman of the board). • Scott Oliver (Current CEO and former Nike VP). • Colin Baden (Current President, joined in 1996). • Excellent Locations • Strong malls and outlet centers • Airport locations through licensing arrangement • More focus on inline locations over kiosks to maximize branding

19. Internal Sources cont’d • Oakley Trademarks • 320 Patents, and 249 Registered Trademarks • Size -Hiring more employees and opening more stores (Currently 1-2 a year). 9,500 stores in U.S. sell Oakley's and are encouraged not to discount. • Economies of Scale- Consolidation of their Designing, Prototyping, and Manufacturing Capabilities make them stand above their Competitors.

20. Internal Sources cont’d • Reputation • Inspired by Athletes who use as equipment • Patented High Definition Optics (HDO) for optimal clarity • Withstand the force of a 1 lb pointed weight dropped 4 ft. • And the force of a 12-gauge shotgun blast from 15 yards away.

21. Oakley’s Relationships • Oakley athletes won 7 different ESPY Awards • Athletes such as Tony Stewart, Annika Sorenstam, Ryan Moore and Jimmy Casper, Andre Agassi • 8 out of top 10 riders in Tour de France wore OO sport performance wear. • Worn by celebrities such as Tom Cruise Philip Knight of Nike, baseball hero Carl Ripken Jr. and Michael Jordan. • Receive many celebrity endorsements either free or at low cost (last year spent only about $.03 per $1.00).

22. Financial Analysis • 203 million in sales as of Second Quarter • Increase from 170 as of End of Second Quarter 2005 • Steady Annual Growth of Sales • 650 Million in 2005, up from 585 in 2004, and 520 in 2003 • Expanding thru Company Mergers • Acquisition of Oliver Peoples and Optical Shop of Aspen which was acquired in April. • Growth thru Consolidation • In June is consolidated 6 store banners of Iacon into one strong national brand (Sunglass Icon). • Competitive Advantage over Rivals • Brands such as Gucci, Ray-ban, and Armani focus more on fashion.

23. Financials cont’d Indicators • Offering more than just glasses • Sales of sunglasses only accounts for less than 50% gross sales. The rest is based on golf, skiing, surfing and mountain biking apparel. • Product Differentiation • Offers unique products compared to Nike, Gucci, or Ray-ban • Targets new trends • Current targeting towards “active lifestyle” Differences • Optics up 20.9% from last year. Retail sales up 49% • Strong double digit optics growth in wholesale and retail channels both domestic and international businesses • Positioning for further optics growth and restructuring footwear plan • Accelerating sales and disposal of out-of-season inventory • Consolidating certain European product distribution facilities.

27. Oakley’s Main Target Markets • Surfers • Skaters • Snowboarders • Bmxers • Golfers • Wake boarders • Skiers • Mountain Bikers