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Nike, Inc. (NYSE: NKE) 17 March 2014 Rushil Surapaneni| Saad Hirani

Nike, Inc. (NYSE: NKE) 17 March 2014 Rushil Surapaneni| Saad Hirani. Agenda. Business Overview Company Fundamentals Chart Analysis Competitors Competitive Analysis Entry strategy. Business Overview | Company Analysis | Company Fundamentals | Charts | Competitors | Summary.

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Nike, Inc. (NYSE: NKE) 17 March 2014 Rushil Surapaneni| Saad Hirani

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  1. Nike, Inc. (NYSE: NKE) • 17 March 2014 • Rushil Surapaneni| SaadHirani

  2. Agenda • Business Overview • Company Fundamentals • Chart Analysis • Competitors • Competitive Analysis • Entry strategy

  3. Business Overview | Company Analysis | Company Fundamentals | Charts | Competitors | Summary Business Overview –Sports Equipment & Sportswear Stock Overview Business Overview • A major publicly traded sportswear and equipment supplier based in the United States. • Operates 700 stores in 46 different countries. Growth Analysis • Since its establishment in 1964, Nike has shown continuous substantial growth as a corporation both domestically and globally. • With sound financial practices and innovation strategies, it is likely Nike will continue to grow between 10-15% annually • Incredible track record • Consistently outperforms the S&P 500. Nike has demonstrated signs of performing far above the markets and possesses a track record of consistent growth.

  4. Business Overview | Company Analysis | Company Fundamentals | Charts | Competitors | Summary Company Analysis-Nike Business Model Factors Behind Growth • Increasing global market share: • Nike has been showing strong growth in North American market and equally impressive in emerging markets. • Company has forecasted significantly improved future orders in China, indicating its sales will pick up once again there. • Decent valuation compared to competition. • Recently voted as world’s most innovative company in 2013. • Secular trend of growing fitness consciousness and rapidly rising income levels in emerging economies • Spending money away from traditional media and moving more money into social media. • For athletes, Nike zeroes in on athletes who demonstrate a high ROI as measured by number of Facebook fans and Twitter followers they have.

  5. Business Overview | Company Analysis | Company Fundamentals | Charts | Competitors | Summary Company Fundamentals Essential Statistics Highlights • Beta: 0.7 • Market Cap: $70.36 bn • P/E: 25.35 | Earnings per share : 3.13 • ROI: 25.05% | ROA: 13.66% • Cash to Debt ratio of 1.19 indicates “cash is king” is part of its growth strategy • In the past 12 months the stock has gained 43.2%. • In Q2 2014, revenues from North America grew by 9%, while Central & Eastern Europe and Western Europe saw revenue growth by 14% each. Nike has seen consistent revenue growth, growth in EPS, and is not particularly volatile. . The company possesses healthy cash flows and demonstrates interests are aligned with shareholders.

  6. Business Overview | Company Analysis | Company Fundamentals | Charts | Competitors | Summary Chart Analysis Source: Google Finance

  7. Business Overview | Company Analysis | Company Fundamentals | Charts | Competitors| Summary Competitors Primary Competitors Primary Flaws of Competition • Primary competitors include Adidas AG, PUMA Se, and Under Armour. • Nike reported an 11% rise in sales in western Europe in the 1st half of fiscal 2014, while Adidas posted a fall of 6% at constant currencies in its 3rd quarter. • Under Armour’s lack of meaningful international growth and footwear brand being too small leads many analysts to believe in a major dip in Under Armour stock price. • Adidas losing ground to Nike in European markets and Nike has more strategically diversified itself with Cole Haan, Hurley, and Jordan. Sources:

  8. Business Overview | Company Analysis | Company Fundamentals | Charts | Competitors | Summary Summary Thesis Points In Conclusion • Strong historical growth and opportunities. • Healthy cash flows and operations. • Interests aligned with shareholders. • Highly innovative and continued expansion in domestic and international markets. • Stronger market hold compared to competitors. • We plan to invest in Nike as soon as approval is given because of the indicators of continued growth in future earnings reports and earnings to beat Wall Street expectations • Earnings release: 20 March 2014

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