• By 2026, On intends to double its expected full year 2023 net sales and increase its adjusted EBITDA margin to 18%+
• Vision to be the most premium global sportswear brand
• Three strategic growth pillars will ignite On’s future growth path – Elevate the current core business and communities, Expand additional growth drivers such as China and own retail and Establish new building blocks, including Tennis and Training

ZURICH, Switzerland, October 2023 — Swiss performance sportswear brand On (NYSE: ONON) hosted an Investor Day at On Labs in Zurich, Switzerland, on October 4, 2023. Two years after the Company’s IPO and following the successful execution on the growth strategies presented during the listing process, the Company is providing an update on its strategic priorities and vision. As a part of the event, the Company is announcing three-year (FY 2026) financial targets and introducing the strategic building blocks to support this next stage of growth.

Following On’s track record of strong growth and increasing profitability, the Company intends to double its expected 2023 net sales by 2026, while increasing its adjusted EBITDA margin to 18%+ in the same timeframe. On is further setting out to build the foundation for a much bigger company in the future, with the long-term ambition to build the most premium, global sportswear brand.

“We are extremely proud and pleased with how we have been able to successfully deliver on our mission and growth strategies over the past two years,” said Marc Maurer, Co-CEO. “The strength of our brand and products, our outstanding team and innovation capabilities, as well as the very large addressable market, give us numerous opportunities to grow. We are staying true to our core, with controlled expansion into adjacencies, to continue on our path towards the vision to be the most premium global sportswear brand.”

On’s strategic vision for the next stage of growth includes the three strategic growth pillars Elevate, Expand and Establish:

• Elevate: On continues to see significant runway for growth in its core areas. The growth pillar Elevate includes the strategic building blocks to further elevate its market share in running, its brand awareness among its communities as well as its performance credibility and sustainability impact
• Expand: On is at the early stage of geographic expansion and sees potential to build its footprint considerably. The growth pillar Expand includes the strategic building blocks to expand its premium multi-channel distribution, its own retail presence, and its footprint in China
• Establish: On is stepping into selected adjacencies, while staying true to its philosophy centered around establishing credibility in performance. The growth pillar Establish includes the strategic building blocks to establish its training community and light up the tennis court, as well as to establish full head-to-toe looks across all its verticals

Financial Ambitions

Besides updating its strategic priorities, On today is reiterating its previously provided outlook for the full fiscal year ending December 31, 2023. This includes the expectations to reach CHF 1.76 billion in net sales, at least 58.5% gross profit margin and 15.0% adjusted EBITDA margin respectively.

On’s strategic growth pillars will set the basis to continue to deliver on the philosophy of combining strong growth alongside attractive and increasing profitability. By 2026, On intends to deliver on the following financial ambitions:

• Doubling net sales between 2023 and 2026 to at least CHF 3.55 billion, reflecting a CAGR of over 26% based on the outlook for the full fiscal year ending December 31, 2023
• Exceeding 60% gross profit margin by 2026
• Deliver economies of scale, with the ambition to reach 18%+ adjusted EBITDA margin by 2026

“We have an exciting product pipeline that includes running, training, and tennis footwear and apparel. Additionally, we believe there are huge opportunities to increase brand awareness and to expand through our multi-channel approach. We are enthusiastic about our continued growth.” said Martin Hoffmann, Co-CEO and CFO. “The 2026 targets announced today continue to be above the long-term ambitions shared at the time of the IPO, and we view them as an intermediate step in our ambition to build a much bigger company in the future”.

Beyond the stated ambitions for 2026 and resulting from the vision to build the most premium global sportswear brand, the Company further announces the long-term targets to drive towards an apparel share of 10%+, an own retail share of 10%+ and a China share of 10%+ in relation to its overall net sales. Similarly, the Company expects to further drive profitability beyond 2026, with the aspiration to grow Net Sales by 20 – 25% per year and exceed 20% adjusted EBITDA margin as its updated long-term targets.