MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Bjørn Ivar Austrem SKIS 2011 Category manager, skis

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Agenda SKIS Introduction 2.Technical updates 3.Prices and cost 4.Ski line 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Introduction

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Introduction 2009/10 has been a fantastic season – Cold and stable winter in Scandinavia – Average+ season in Middle Europe – Increased sales and interest in North America Production of Madshus skis – Approx pairs in Norway – Approx pairs in China – Approx pairs sourced SKIS 20115

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Introduction Madshus is the second largest supplier of nordic skis in the world Want to become a more globalized company – Portfolio – Marketing – Network – Resources 6SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Technical updates

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Technical updates The ski line is normally a two or three year cycle Some graphical updates only for 2011 Focus on – Stable production – Testing – Improve processes in the factories 8SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Technical updates Introduction of the new skate skis has been very succesfull – WC victory already in first race in Beitostølen 2009 – 12 medals in Vancouver Olympics – Overall winner WC Biathlon, men Constantly working on improved camber styles, both classic and skate 9SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Prices and cost

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Prices and cost Price pressure, especially on low end products, but also on the high end Chains and buying groups are focusing a lot on price Higher technical demands on the low end products 11SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Prices and cost Two main production facilities Norway; – High end products – New technology and innovations China; – Lower end products, relatively low material cost – Low labour and overhead cost 12SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Prices and cost Two main production facilities Norway; – High material cost – High labour and overhead cost China; – Far away from the technical resources – Big factory with many ”customers” 13SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Prices and cost Raw material prices in general up – Higher demands in India and China – Especially chemicals for epoxy and plastics – Europe needs to import because of too low production capacity themselves – During the financial crisis production was low, it takes time to speed up again 14SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Prices and cost Higher world wide demand for plastics and composite materials – ”Green” technologies are popular both in the car and aviation industry – New possibilities in design Higher transportation cost – Capacity was built down during the financial crisis – Higher production -> higher transportation demands 15SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Prices and cost Challenges last year; – Epoxy hardener was almost empty on a world wide basis last summer – Unstability in quality of raw material deliveries – Old machinery; new grinding line will be installed during SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Champion Series Race Performance Classic Series Touring Series Cruising Series Junior Series Kid Series Back Country Series Cross Country Downhill 18SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Champion Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.The most technically advanced skis on the market 2.Superior camber line and pressure zones for the different snow conditions 3.PR100X and PR90 foam cores – also used in other light weight applications like space shuttles and aviation industry Champion Series NanosonicHypersonic 20SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Champion Series SKIS Nanosonic Carbon Classic Hypersonic Classic

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Champion Series SKIS Nanosonic Carbon Skate Hypersonic Skate

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Race Performance Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.Based on the same technology as the Champion Series 2.High quality bases for a large variation of snow conditions 3.Different levels from entry to high performance Race Performance Series TerrasonicIntrasonicUltrasonic 24SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.Same high level as the uni-sex skis in the same category 2.Camber line and flex adjusted to fit the active women 3.New and more neutral colorway to fit clothing and boots better Race Performance Series MetisMaiya 25SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Race Performance Series SKIS Terrasonic Ultrasonic

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Race Performance Series SKIS Intrasonic *Also available without NIS-plate as SMU

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Race Performance Series SKIS Metis Maiya

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Classic Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.High performance materials 2.Excellent torsional performance through the 3D construction 3.Offered both as a normal wax and a Zero CIG ski Classic Series Birkebeiner 30SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Classic Series SKIS Birkebeiner

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Touring Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.Optimized side cut for easy handling and excellent stability 2.Wide range from the entry level to the more advanced 3D touring ski 3.CT100 and CT120 is offered both as a wax and a no-wax ski Touring Series CT 150CT 120CT SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Touring Series SKIS Touring *SMUs available (Nordmarka and Lillehammer)

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Cruising Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.Optimized side cut for easy handling and excellent stability 2.Easy sizing – S/M/L 3.MG no-wax base for easy introduction to classic skiing Cruising Series Cadence 120 Cadenza 120 Cadence 100 Cadenza SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Cruising Series SKIS Cruising

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Junior Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.High performance Norway made skis 2.Material and construction like the senior models 3.Computational flex and camber measurements for optimal performance Junior Series NanosonicUltrasonicMegasonic 39SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Junior Series SKIS Junior – Norway made

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.Less expensive entry level alternative 2.Wider side cut for better stability 3.Light and easy handling Junior Series SuperwaxSuperskate 41SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Junior Series SKIS Junior – K2M made made

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Kid Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.Uniqe and exclusive Madshus cap design with high durability 2.Wide side cut for better stability 3.NIS plate for easy binding mounting in the shop Kid Series ButterflySuper U 44SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Kid Series SKIS Kid

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Back Country Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.Robust and versatile steel edge skis 2.Progressive MGV+ no- wax pattern 3.Well defined wax pocket for excellent glide and kick properties Back Country Series BC 50BC 55 47SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Back Country Series SKIS BC Art. ModelSide cutLengthBaseCore 966BC mm /10, /5 P-Tex 2000Multicore 967BC 50 MGV mm /10, /5 MGV +Multicore 940BC mm170,180, /5P-Tex 2000Multicore 947BC 55 MGV mm170,180, /5MGV +Multicore SMUs available as Voss (BC 50) and Glittertind (BC 55)

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Cross Country Downhill Series

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Sales arguments 1.Progressive MGV Omni base in the kick zone 2.Wide skis – deep sidecut 3.Light weighted Paulownia/Maple core Cross Country Downhill Series EonEppochAnnum 50SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Cross Country Downhill Series SKIS CCD *SMUs available with normal wax base

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Flex tables SKIS

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Flex tables SKIS

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 Ski line 2011 Performance Exercise & lifestyle Growing upExplore Champion Series Race Performance Classic Series Touring Series Cruising Series Junior Series Kid Series Back Country Series Cross Country Downhill 54SKIS 2011

MADSHUS THE CROSS COUNTRY COMPANY SINCE 1906 SKIS 2011