On Holding AG

Thank you for standing by. My name is Krista and I will be your conference operator today. I would like to welcome everyone to the On Holding AG second quarter 2024 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw that question, again, press star one. Thank you. I will now turn the conference over to Jarrett, who is head of investor relations. Jarrett, you may begin.

Good afternoon. Good morning to our investor community. Thank you for joining ONZ 2024 second quarter earnings conference call and webcast. With me today on the call are ONZ executive co-chairman and co-founder David Aleman, CFO and co-CEO Martin Hoffman, and co-CEO Mark Maurer. Before we begin, I will briefly remind everyone that today's call will contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations and beliefs only and are subject to certain risks and uncertainties that could cause actual results to differ materially. Please refer to our 20F file with SEC on March 12th for a detailed discussion of such risks and uncertainties. We will further reference certain non-IFRS financial measures such as adjusted EBITDA and adjusted EBITDA margin. These measures are not intended to be considered in isolation or as a substitute for the financial information presented in accordance with IFRS. Please refer to today's release for reconciliation to the most comparable IFRS measures. We will begin with David, followed by Martin, leading through today's prepared remarks, after which we look forward to opening the call for a Q&A session. With that, I'm very happy to turn over the call to David.

A warm welcome to our second quarter 2024 results call. Martin, Marc and I are coming to you from our improvised studio in the Swiss Alps and hope you had a restful and good summer. Wow, what an exciting summer and quarter it has indeed been for all. Zendaya joined our team as partner and already played an air tennis tournament against Roger Federer in front of OnLabs. Our groundbreaking innovation LightSpray has been eagerly discussed in 325 media articles around the world over the past weeks. And more importantly, this new technology has already been validated by the amazing performance of ON athletes in their competitions. On the financial scoreboard, the second quarter saw our reported net sales grow by 28%, resulting in net sales of 567.7 million Swiss francs. These very strong results keep us well on track to reach our goals set out for the year. Importantly, we continue to operate and take decisions for the long-term success and health of all. With that, I would like to point out that we have once again increased our profitability levels, both from a gross profit and an adjusted EBTA margin perspective. Over the last weekend in Paris, it struck me that the Olympics do not measure the performance of athletes in a yearly cycle as other tournaments do, or even over quarterly cycles. The Greeks knew 2,800 years ago that big dreams require a longer period to train, evaluate, and prepare. This is why I want to speak to you today about how ON's unique ambition to dream big over long cycles leads to extraordinary achievements, breakthrough innovations, and ultimately durable growth. As a founder-led company, our mantra, dream ON, is a rallying cry to pursue the most daring dreams with long-term determination and a diverse, incredible group of people who dream together. We dream together to win. The Games ended just two days ago, yet the extraordinary achievements of all athletes will fuel our passion and inspiration for a long time going forward. It was a true privilege to see the determination, passion and energy across the competition's first hand. To be reminded of the four years of preparation that many athletes go through for that one big moment. And of course, the Olympics stand for more than simply the competition for medals. The Games 3 values. excellence, respect and friendship express the unique ability the event has to bring people together in a way that only sport and movement can. These Olympic values inspired us to create a standout campaign with our new partner Zendaya that you may have seen together with millions of people across social media or through the streets of Paris. Zendaya reminds us that winning is never the work of just one individual, but a highly capable team with a long-term commitment to put the work in and see it come to fruition over time. Winning together continues to scale with our powerful team and brand. We are so fortunate to have the opportunity to dream on with our incredible team of athletes. 66 athletes from 25 different countries made their way to Paris to take part in one of the biggest moments of their careers. We could not be more proud of each and every one of their achievements. On Saturday, Dominique Lobalu, whose quest and dream to run in Paris came true, offered us all a memorable moment and came incredibly close to the podium finishing fourth in the thrilling men's 5,000-meter. And on Sunday, Helen O'Berry raced her way to a bronze medal at one of the final competitions in Paris, the Women's Marathon. Iga Światek made history by securing the first-ever tennis medal for an unsupported athlete, earning a bronze that also marked the first-ever tennis medal for Poland. Our triathlete, Lisa Terch, also made her way into the history books in the mixed relay, being the first unsupported athlete to ever win gold in the Olympic Games. And who could ever forget Jarek Nobu's final sprint? This incredible performance earned him a bronze just at the hundreds of a second behind Getting Silver. So, truly historical moments that we'll never forget. In fact, 20 athletes from 12 different countries competed in the games from our very own On Athletics Club alone. The On Athletics Club follows a unique model that highlights how sports unite rather than divide us. This team of talented and committed individuals train together year round to prepare for competitions around the world. It's a model where teamwork and the will to win coexist and thrive. So even an individual sport like running benefits from athletes motivating, supporting, and inspiring each other to perform at the very highest level. Our commitment to our athlete team extends beyond traditional elements, such as supporting them in their physical and mental preparation. Overseen by former professional athletes, our program offers assistance in health and recovery, financial planning, personal branding and media, as well as career development beyond their athletic years. Former triathlon world champion Nicola Spirig, who won the first Olympic medal for ON in Rio in 2016, has now joined ON as a team member. She supports the unique model of our athletic club, which is already becoming generational. Performance is at the core of ON. At ON, big dreams lead to breakthrough innovation. Dream ON, the spirit that drives our athletes, is the same mantra that fuels our team's bold, innovative vision and mindset. Our new light spray technology is proof of that. It came to life after one of our team members saw the potential to use a hot glue gun to spray a shoe, like Spiderman would do with that fluid. 40 years ago, we packed this crazy dream as one of our innovation moonshots with resources at OnLabs. From there on, our team came together to test, challenge, and build on every setback to reach new ideas for what would eventually result in the new CloudBoom Strike light spray. It features an ultralight upper that is sprayed, not built, in a one-step process automated by a robotic arm in just three minutes. We'll admit, when marathon star Helen O'Berry saw it for the first time, she was fairly skeptical. It truly doesn't look like a performance running shoe you have ever seen before. But after putting them to the test in her training session, she decided they were too good to leave behind for competition. She then stunned us all by winning the marathon in Boston earlier this year, wearing this groundbreaking shoe. Looking forward, this is just the start of a dream that we believe will challenge the norms of outstanding performance, manufacturing efficiency, sustainability, and potentially nearshoring all at once. In fact, this marks a turning point in manufacturing with the potential to be brought to many more on-products in the future. A few lucky folks might have caught a first-hand glimpse of the innovation, live at our ON Labs pop-up in Paris over the past few weeks. I believe it's safe to say that our guests' reactions to the light spray robots were incredibly positive. It left a clear message. ON will always there to take bold bets on our mission towards achieving long-term innovation-led success. In essence, Innovation and new technology enable us to create the best sports gear available. This allows us to broaden our product offering and reach an even larger community. Or in other words, through our mission to ignite the human spirit through movement, we inspire others to dream on. While SlideSpray is a look into the future, our innovation pipeline continues to deliver new and exciting products in the short term. An example is the CloudBoom Strike, our latest high-performance product for race day. Available in a limited first colorway since early July, it will be more broadly launched in early September. The shoe revolutionizes the fast-running experience with an innovative, ultra-responsive drop-in midsole construction tailored to marathon racing. the everyday runner the newly launched cloud surfer next offers a dynamic running sensation with our patented cloud tech phase technology and an aesthetic inspired by the cloud boom echo series we dream on with global talents as i mentioned earlier success is a team sport through authentic connections we build long-lasting relationships with athletes in the On Athletics Club, as well as partners like Zendaya, FKA Twigs, Iga Zviacek, and Roger Federer. These partnerships allow us to create incredible momentum for the brand, as seen most recently in Paris, where our presence was felt. From our pop-up on labs located in the heart of the French capital to our newest and largest flagship store on the legendary Champs-Élysées, Paris has given us the opportunity to leave a mark on the world's largest sports stage. Sport remains one of the last and ultimate life moments to build cultural relevance for brands in performance and lifestyle. In the last weeks, ON Storytelling reached a global community of millions, and together with our global talents, we are just getting started. If you remember three things from my introduction, I want you to remember this. First, ON is dreaming and building for the long term with an outstanding team of athletes, talents, and global brand partners. We dream and win together, as performance is at the core of ON. Second, the risk-taking approach of a founder-led company leads to radical innovation that will fuel ON's product ramp and durable growth for years to come. And third, our bold long-term dreams are creating enduring brand and business value. The 2024 Games have ended and ON left its mark. The road towards 2028 in LA starts for us at ON today. It's my great pleasure to hand over to Martin for a more detailed review of the quarter. Martin, please. Thank you, David.