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Umbro plcInspire & Excite the World of Football

Preliminary results for the year ended 31 December 2006

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Highlights

• Delivering against growth objectives…– PBT (before exceptional items) up 16%

– Adjusted EPS up 26%

• Strong International development…– China investment

– Dick’s Sporting Goods relationship (USA)

• Brand transitioning…– Performance technology

– Lifestyle

• Operational developments…– Priority markets– Sourcing

• Current trading in line with management expectations…– Large increase in dividend a sign of Board confidence

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Financial Review

Steve MakinCFO

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A year of record profits…2006 2005 2004 % c hange

£'m £'m £'m v 2005

TW E 409.4 351.9 356.3 16.3%

P rofit before tax and exceptionals 26.6 23.0 21.8 15.7%

P rofit before tax 26.6 31.4 (7.1) (15.2% )

pence pence pence

B as ic earnings per share 13.7 15.2 13.6 (9.9% )

A djus ted earnings per share 13.7 10.9 11.9 25.7%

P roposed final dividend 3.74 3.20 2.90 16.9%

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Profit and loss account2006 2005 2004 M o ve m e nt

non-except'l non-except'l v 2005

£'m £'m £'m %

TW E 409.4 351.9 356.3 16.3%

B uy /sell turnover 119.7 99.1 118.0 20.8%

Gross P rofit on buy /sell 60.3 53.9 57.0 11.8%

% 50.4% 54.4% 48.3%

Royalty incom e turnover 29.8 23.9 22.4 24.9%

Operating E xpenses (67.9) (59.1) (59.9) 15.0%

Other operating incom e 5.3 5.8 4.7 (9.6% )

Ope ra ting profit 27.4 24.5 24.2 11.7%

Net finance cos ts (1.7) (1.8) (2.4) (8.2% )

S hare of assoc iate's profit 0.8 0.3 0.0P rofit Be fore Ta x 26.6 23.0 21.8 15.7%

Taxation (6.8) (7.2) (4.7) (4.6% )effec tive rate 25.7% 31.2% 21.5%

P rofit Afte r Ta x 19.8 15.8 17.1 24.9%

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Broad based growth: across product categories…

• Licensed apparel boosted by tournament year;• Branded product growth >10% cer;• Footwear remains an opportunity.

2006 2005 2004 Growth v 2005£'m £'m £'m Cer %

Licensed Apparel 137.5 103.8 115.5 32.8%

Branded Products 271.9 248.1 240.7 10.2%

409.4 351.9 356.3 16.8%

Branded Products:Apparel 146.5 134.2 121.2 9.8%

Footwear 81.8 85.6 74.3 (3.7%)

Equipment 43.6 28.3 45.2 54.2%

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Broad based growth: across geographies…

• Solid European progress;• Rapid growth in Asia;• Americas – strong growth in Latin America impacted by USA performance;• 64% of revenues generated outside the UK.

2006 2005 2004 Growth v 2005£'m £'m £'m Cer %

UK 148.0 121.3 138.8 22.0%

CER 150.9 127.7 143.4 18.6%

Asia 61.6 55.2 49.2 15.3%

Americas 48.9 47.7 24.9 0.9%

International Total 261.4 230.6 217.4 14.1%

Global Total 409.4 351.9 356.3 16.8%

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TWE growth 2006 v 2004…

• Branded products account for 60% of TWE growth;

• International markets account for 80% of TWE growth.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

B y P roduc t B y Region

£'m

Branded

Licensed

UK

International

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Buy/sell gross margin reduction…2006 2005 2004

£'m £'m £'m

Buy/Sell turnover 119.7 99.1 118.0

Gross margin * 60.3 53.9 57.0

Buy/Sell margin % 50.4% 54.4% 48.3%

* After adding back Sports Marketing, D&D and exceptional costs

• Expected dilution due to product mix;• Consolidation / pricing – additional dilution;• Sourcing – good progress.

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Other P&L items…

• Strong royalty growth;– International growth– ‘Badge’ royalty mix– New business

• Operating expenses;– Targeted investment

• Brand Marketing• Sports Marketing• Design and Development

– Good underlying cost control

• Share of Associates Profits;– Full year of 25% equity on PAT of $6.5m (2005 $5.2m)

• Tax rebate;– £1.5m - prior year overprovision– Underlying rate unchanged at 30%

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Balance sheet strengthening…31 Dec 31 Dec 31 Dec

2006 2005 2004£'m £'m £'m

Fixed Assets 2.5 2.7 2.3Goodwill 73.1 72.9 70.4Intangiable assets & Investments 5.9 5.8 1.4Stock 11.9 7.3 6.7Debtors 31.8 62.3 27.5Creditors excluding net debt (48.0) (61.4) (44.6)Net Cash/(Debt) 4.7 (16.1) (7.1)Net Assets 82.0 73.3 56.6

Share Capital and Share Premium 90.7 90.7 90.7Reserves (8.7) (17.6) (34.2)Minority Interest 0.0 0.2 0.1Total Equity 82.0 73.3 56.6

• Debtor reduction versus 2005 – Chelsea cash paid mid year;• Creditor reduction versus 2005 – rolling 2yr payment to The FA;• Earlier 2007 England home kit launch – stock build.

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Cash flow boosted by exceptional receipt…

• Strong Operating Cash Flow;• Working Capital requirement boosted by 2007 launch timing and sales phasing;• Investments in 2007 plus Working Capital increases 2007 cash requirement.

2006 2005 2004£'m £'m £'m

Operating P rofit 27.4 24.5 24.2Deprec iation & A m ortisation 2.4 1.8 1.3

29.9 26.4 25.5

W ork ing Capital (15.1) (9.1) (2.0)

Capital E xpenditure (0.8) (1.5) (1.2)Ope ra ting Ca sh Flow 13.9 15.8 22.3

E xceptionals received/(paid) 24.5 (7.8) (2.1)Interes t (1.5) (1.6) (2.1)Tax (7.0) (6.2) (1.7)Dividends paid (7.2) (6.5) (30.1)Inves tm ent in China (2.1) (2.8) 0.0

Ne t Ca sh (Outflow )/Inflow 20.8 (9.0) (13.7)

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CFO Summary

2006: Strong progress…• Broad based growth in line with objectives;• Increasing International exposure;• Margin pressure from consolidation and pricing; • Targeted investment – strong underlying cost control;• Final dividend increase reflects Balance Sheet strength and

management confidence.

Current trading…• In line with management forecasts;• Non-tournament year – Euro qualification sensitivity;• Business transitioning - buy / sell share, sourcing;• Cash requirement – Working Capital, China, NFC;• Opportunities for further investment.

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Peter McGuiganCEO

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Defining the field of play…

• Football is THE Global game;– High participation rate– TV coverage – World Cup, English Premier League.

• Popularity is growing;– The Football Performance market is $5bn in a Sporting

Goods market of $100bn– Growth of 5 – 6% p.a.

• Umbro is dedicated to football.– Globally, 77% of people interested in football recognise the

Umbro brand.

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Group Strategy

LEVERAGE AUTHENTICITY

ENHANCEIMAGE

MAXIMISEREACH

• Global presence

• More clubs

• Tournaments

• Performance technology

• Lifestyle

• In Store

• Priority markets

• Control

• Share of profits

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Leverage authenticity - Sponsorships at every level…

• Global presence– Selective investment in trophy names.– International reach (OL, Santos, Independiente…)– English Premier League focus– Investment in grass roots.

• More Clubs;– West Ham United, Wigan Athletic, West Bromwich

Albion, Sunderland.

• Tournaments.– Umbro sponsor 12 of the top 20 global 11 a side

amateur tournaments.– FA Umbro 5’s– China 5v5

Santos

Independiente

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Enhance image – Performance technology…

• Evolution X growth continues – 21% versus 2005, all markets;

• Trilogy fabric development.– Cotton / Polyester mix, invented by Umbro.

– Used in all 2007 kits plus SX.

• Share of football boot market declined;

• Technical collaborations / strong design.

Apparel

Footwear

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Enhance image - Lifestyle…

• First season for u by Umbro;• New distribution includes:

– JD– Sweden– FL Europe

• 60 ‘top-end’ doors, limited to key markets and retailers;

• Kim Jones continues to develop – focus on Footwear

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Enhance image - Share of space in store…

• Brands competing for share of voice;

• International Licensee focus;

– Shop in Shop / StandAlone Stores

• China – 1050• Rest of World - 600

• Investment in UK;– Football areas– Leverage England– JJB and Sportsworld

football areas

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Maximise reach – distribution strategy…

• Top 10 markets are 80% of the global market;

• Umbro are represented in all of the top 10;– UK / USA – subsidiaries– China – JV– Remainder – 7 Licensees

• Umbro’s Top 10 Licensees account for >70% of global TWE;

• Selective investment and consolidation;– Simplify group structure;

– Brand control;

– Likely to lead to selective investment

Share of Global L icensee TW E

R emaining 31 L icensees Top 10 L icensees

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Maximise reach - Greater China…

• 48.2% cer growth in 2006 over 2005 - $54m;

• Distribution ahead of plan with in excess of 1000 Umbro SAS/SIS outlets, target of a further 300 by year end;

• Product focus – In-market design;

• Increased equity stake from 25% to 40%.

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Maximise reach - USA…

• 2006 Turnover reduced by 63% cer versus 2005;• Over reliance on Footlocker in 2005;• 40% growth in non Footlocker business in 2006,

driven through ‘Soccer Accounts’;

• Significant new Dick’s Sporting Goods agreement;• Leveraging ownership of United Soccer Leagues;• Building brand authenticity;• Broadening distribution.

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Maximise reach - UK…

• Impressive headline growth of 22%;• World Cup brand exposure;• Solid growth in branded business;• Margins under pressure from consolidation;• Footwear sales disappointing;

• New Sportsworld agreement – shift to buy/sell;• In store football area investment;• Footwear back to growth;• Margin initiatives under way.

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UK- investment in in-store merchandising…

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Maximise reach - Umbro Asia Sourcing (UAS)…

• Global brand control;

• Social compliance;

• Support for future growth;

• Margin opportunity – share of global profits;

• Fully operational January 1st 2007;

• Licensees required to source all Umbro apparel through UAS by 2010 – target value $150m.

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Maximise reach – Share of profits…

• Umbro Asia Sourcing;

• Joint Ventures;

• Royalty rate improvement.

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LEVERAGE AUTHENTICITY

ENHANCEIMAGE

MAXIMISEREACH

• Global presence

• More clubs

• Tournaments

• Performance technology

• Lifestyle

• In Store

• Priority markets

• Control

• Share of profits

Inspire and excite the world of football…