SUSTAINABLE GROWTH ANALYSIS OF UNDER ARMOUR INC.

2009 -2013* Compound annual growth rate

Required Ratios 2009 2010 2011 2012 2013 2014 2015 2016 2017 Growth 09 - 13 Growth 09 - 17 CAGR 09 - 13 CAGR 09 - 17
O Profit margin, P, % 5.46% 6.44% 6.58% 7.00% 6.95% 6.75% 5.87% 4.10% -0.97% 27.29% -117.77% 4.94% -182.53%
F Retention ratio, R, % 100% 100% 100% 100% 100% 100% 100% 100% 100% 0.00% 0.00% 0.00% 0.00%
O Asset turnover, A, times 1.66 1.74 1.85 1.77 1.48 1.68 1.60 1.48 1.30 -10.84% -21.69% -2.27% -2.68%
F Financial leverage, T, times 1.36 1.35 1.44 1.42 1.50 1.55 1.72 1.79 1.98 10.29% 45.59% 1.98% 4.26%
Promedio
Under Armour´s Sustainble growth rate, g* 12.33% 15.13% 17.53% 17.59% 15.43% 17.58% 16.15% 10.86% -2.50% 13.34% 25.17% -120.26% 4.59% -183.74%
Under Armour´s actual growth rate in sales, g 18.09% 24.23% 38.42% 24.60% 27.09% 32.26% 28.50% 21.75% 3.13% 24.23% 49.75% -82.70% 8.41% -17.71%

* Data from Morningstar.com

1. What does it mean? Cash Deficit

What if?
Profit Financial
Margin Leverage Both
Occur
8.0% 2.4 Times
Under Armour´s Sustainble growth rate in 2013 17.76% 24.69% 28.42%
Under Armour´s Sustainble growth rate in 2017 20.59% -3.03% 24.96%
 Growth Profitability and Financial Ratios for Under Armour Inc A
Financials
TTM 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12
Revenue USD Mil 5.16 4.977 4.825 3.963 3.084 2.332 1.835
Gross Margin % 44.5 45.0 46.4 48.1 49.0 48.7 47.9
Operating Income USD Mil 119 152 417 409 354 265 209
Operating Margin % 2.3 3.1 8.7 10.3 11.5 11.4 11.4
Net Income USD Mil -138 -48 257 233 208 162 129
Earnings Per Share USD -0.31 -0.11 0.45 0.53 0.47 0.38 0.30
Dividends USD 0 0 0 0 0 0 0
Payout Ratio % * - - - - - - -
Shares Mil 444 441 445 442 439 432 426
Book Value Per Share * USD 4.47 4.75 4.39 3.86 3.21 2.66 2.30
Operating Cash Flow USD Mil 379 234 304 -44 219 120 200
Cap Spending USD Mil -177 -281 -387 -299 -141 -88 -51
Free Cash Flow USD Mil 202 -47 -82 -343 79 32 149
Free Cash Flow Per Share * USD 0.05 -0.49 -0.66 0.09 0.04 0.35
Working Capital USD Mil 1.277 1.279 1.02 1.128 702 651
* Indicates calendar year-end data information

Key Ratios -> Profitability

Margins % of Sales TTM 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00
COGS 55.50 55.01 53.57 51.92 50.97 51.26 52.08
Gross Margin 44.50 44.99 46.43 48.08 49.03 48.74 47.92
SG&A 42.19 41.93 37.78 37.77 37.55 37.37 36.55
R&D - - - - - - -
Other - - - - - - -
Operating Margin 2.31 3.05 8.65 10.31 11.48 11.37 11.37
Net Int Inc & Other -4.23 -3.26 -0.60 -0.55 -0.38 -0.18 -0.29
EBT Margin -1.92 -0.21 8.05 9.76 11.09 11.19 11.09

Profitability TTM 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12

Tax Rate % - - 33.82 39.85 39.21 37.80 36.70
Net Margin % -2.68 -0.97 4.10 5.87 6.75 6.95 7.00
Asset Turnover (Average) 1.23 1.30 1.48 1.60 1.68 1.71 1.77
Return on Assets % -3.31 -1.26 6.08 9.37 11.33 11.86 12.37
Financial Leverage (Average) 2.11 1.98 1.79 1.72 1.55 1.50 1.42
Return on Equity % -6.74 -2.38 10.70 15.41 17.31 17.34 17.67
Return on Invested Capital % -4.63 -1.67 7.64 11.71 14.65 15.56 16.12
Interest Coverage - - - - - - -

Key Ratios -> Growth

Latest Qtr 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12
Revenue %
Year over Year 2.66 3.13 21.75 28.50 32.26 27.09 24.60
3-Year Average - 17.29 27.43 29.26 27.94 29.90 28.92
5-Year Average - 22.09 26.79 30.09 29.21 26.31 24.78
10-Year Average - 23.43 27.33 30.29 31.13 35.07 43.50
Operating Income %
Year over Year -6.53 -63.62 2.18 15.42 33.52 27.03 28.22
3-Year Average - -24.57 16.34 25.10 29.56 33.13 34.76
5-Year Average - -6.16 20.73 29.46 32.93 28.08 19.33
10-Year Average - 5.82 21.97 27.53 30.15 38.85 47.39
Net Income %
Year over Year - - 10.49 11.79 28.16 26.05 32.87
3-Year Average - - 16.55 21.78 29.00 33.34 40.15
5-Year Average - - 21.53 27.70 34.77 33.54 19.63
10-Year Average - - 20.76 27.99 28.98 39.67 46.82
EPS %
Year over Year 41.67 - -14.29 10.53 26.67 23.97 30.81
3-Year Average - - 6.27 20.17 27.12 30.82 38.04
5-Year Average - - 14.24 25.67 32.80 31.26 18.17
10-Year Average - - 16.38 27.85 25.57 34.93 40.63

Key Ratios -> Cash Flow

Cash Flow Ratios TTM 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12
Operating Cash Flow Growth % YOY -0.23 0.82 -0.40 12.13
Free Cash Flow Growth % YOY 1.44 -0.78
Cap Ex as a % of Sales 3.43 5.65 8.01 7.54 4.56 3.77 2.76
Free Cash Flow/Sales % 3.92 -0.95 -1.70 -8.66 2.55 1.38 8.13
Free Cash Flow/Net Income -1.46 0.98 -0.32 -1.47 0.38 0.20 1.16

Key Ratios -> Financial Health

Balance Sheet Items (in %) Latest Qtr 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12
Cash & Short-Term Investments 3.99 7.80 6.87 4.53 28.31 22.02 29.54
Accounts Receivable 20.51 15.22 17.09 15.12 13.36 13.31 15.17
Inventory 27.75 28.92 25.18 27.29 25.62 29.73 27.59
Other Current Assets 8.95 6.41 4.79 5.31 6.67 6.49 5.79
Total Current Assets 61.20 58.35 53.92 52.24 73.95 71.55 78.09
Net PP&E 19.42 22.11 22.07 18.77 14.58 14.19 15.63
Intangibles 14.08 15.04 17.23 23.04 7.14 9.28 0.39
Other Long-Term Assets 5.30 4.50 6.78 5.95 4.33 4.98 5.89
Total Assets 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Accounts Payable 11.82 14.01 11.24 6.99 10.04 10.49 12.42
Short-Term Debt 2.37 3.79 0.74 1.46 1.38 6.65 0.79
Taxes Payable
Accrued Liabilities 7.18 7.41 5.73 6.73 7.05 8.48 7.35
Other Short-Term Liabilities 9.39 1.26 1.11 1.51 1.65 1.42 1.24
Total Current Liabilities 30.75 26.47 18.82 16.69 20.12 27.04 21.80
Long-Term Debt 16.64 19.10 21.69 21.86 12.18 3.04 4.56
Other Long-Term Liabilities 5.16 4.05 3.77 3.31 3.24 3.16 3.04
Total Liabilities 52.55 49.61 44.27 41.85 35.55 33.24 29.40
Total Stockholders' Equity 47.45 50.39 55.73 58.15 64.45 66.76 70.60
Total Liabilities & Equity 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Liquidity/Financial Health Latest Qtr 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12
Current Ratio 1.99 2.20 2.87 3.13 3.67 2.65 3.58
Quick Ratio 0.80 0.87 1.27 1.18 2.07 1.31 2.05
Financial Leverage 2.11 1.98 1.79 1.72 1.55 1.50 1.42
Debt/Equity 0.35 0.38 0.39 0.38 0.19 0.05 0.06

Key Ratios -> Efficiency Ratios

Efficiency TTM 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12
Days Sales Outstanding 56.61 45.19 39.95 32.85 28.98 30.17 30.79
Days Inventory 150.01 138.39 120.07 117.05 116.74 120.35 122.93
Payables Period 62.61 64.71 43.08 36.44 43.63 47.20 46.64
Cash Conversion Cycle 144.01 118.87 116.94 113.46 102.09 103.32 107.08
Receivables Turnover 6.45 8.08 9.14 11.11 12.59 12.10 11.85
Inventory Turnover 2.43 2.64 3.04 3.12 3.13 3.03 2.97
Fixed Assets Turnover 6.11 5.89 7.19 9.39 11.65 11.52 10.79
Asset Turnover 1.23 1.30 1.48 1.60 1.68 1.71 1.77
mour Inc A

2011-12 2010-12 2009-12 2008-12

1.473 1.064 856 725
48.4 49.9 48.2 48.9
163 112 85 77
11.1 10.6 10.0 10.6
97 68 47 38
0.23 0.17 0.12 0.10
0 0 0 0
- - - -
420 410 405 403
1.77 1.21 1.00 0.84
15 50 119 70
-79 -30 -20 -39
-64 20 99 30
-0.29 0.05 0.24 0.07
506 407 328 263

2011-12 2010-12 2009-12 2008-12

100.00 100.00 100.00 100.00
51.60 50.14 51.77 51.06
48.40 49.86 48.23 48.94
37.35 39.30 38.27 38.34
- - - -
- - - -
11.05 10.56 9.96 10.61
-0.40 -0.32 -0.33 -0.97
10.65 10.24 9.62 9.64

2011-12 2010-12 2009-12 2008-12

38.21 37.13 43.23 45.31
6.58 6.44 5.46 5.27
1.85 1.74 1.66 1.65
12.16 11.22 9.06 8.71
1.44 1.35 1.36 1.47
17.10 15.27 12.80 12.50
16.18 14.98 12.12 11.39
41.84 49.24 36.16 -

2011-12 2010-12 2009-12 2008-12

 38.42 24.23 18.09 19.57
26.63 20.60 25.75 37.16
27.88 30.50 33.08 44.42
53.92

44.87 31.76 10.85 -10.83

28.38 9.21 14.19 28.93
23.23 25.64 27.43 50.53
47.46 - - -

41.54 46.37 22.38 -27.26

36.36 9.22 6.27 24.69
19.98 28.27 23.44 46.07
41.52

38.06 45.65 19.48 -26.67

33.93 8.47 5.21 28.84
18.55 30.07 18.73 38.70
31.46 - - -

2011-12 2010-12 2009-12 2008-12

-0.70 -0.57 0.71
-0.80 2.27
5.39 2.84 2.32 5.40
-4.36 1.87 11.58 4.18
-0.66 0.29 2.12 0.79

2011-12 2010-12 2009-12 2008-12

19.08 30.19 34.33 20.93
14.58 15.11 14.55 16.68
35.29 31.89 27.22 37.38
6.07 5.12 6.02 6.33
75.03 82.30 82.11 81.31
17.31 11.27 13.37 15.09
0.60 0.58 1.04 1.12
7.06 5.85 3.48 2.48
100.00 100.00 100.00 100.00
10.94 12.54 12.59 14.86
0.75 1.02 1.68 6.58

7.54 8.16 7.49 5.31

0.75 0.36 0.25 0.55
19.97 22.08 22.02 27.30
 7.71 1.34 2.01 2.68
3.08 2.99 2.65 2.11
30.76 26.42 26.69 32.09
69.24 73.58 73.31 67.91
100.00 100.00 100.00 100.00

2011-12 2010-12 2009-12 2008-12

3.76 3.73 3.73 2.98
1.69 2.05 2.22 1.38
1.44 1.35 1.36 1.47
0.11 0.02 0.03 0.04

2011-12 2010-12 2009-12 2008-12

29.26 31.11 34.23 43.99
129.64 124.48 136.13 171.67
44.48 52.48 58.09 62.81
114.41 103.12 112.27 152.84
12.48 11.73 10.66 8.30
2.82 2.93 2.68 2.13
12.52 14.28 11.69 11.52
1.85 1.74 1.66 1.65
 Company Profile

Business Description Contact

Under Armour markets athletic apparel, footwear, 1020 Hull Street Suite 300, Baltimore, MD 21230
and gear and owns technology assets in Connected
Fitness. The brand made its name by developing
performance apparel made of synthetic microfiber,
designed to wick perspiration away from the skin and
help regulate body temperature. Although Under
Armour is primarily a wholesaler to sporting goods
retailers, it also operates 222 factory-house stores
and 80 brand-house stores across the globe. Roughly
22% of total revenue is generated outside the U.S.,
including in Europe, Japan, and China.

T +1 410 454-6428
investorrelations@underarmour.com
www.underarmour.com
any Profile

Sector Industry Fiscal Year End Most Recent Earnings

Consumer Cyclical Apparel Manufacturing Dec 31, 2018 Dec 31, 2017