NEWS FROM AROUND BATA WORLD WEEKLY DIGEST. Bata World Digest March 4, 2016 CORPORATE. An Announcement from Chris Kirk on Executive Changes INTERVIEWS

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1 WEEKLY CORPORATE An Announcement from Chris Kirk on Executive Changes INTERVIEWS INTERVIEWS MANUFACTURING Q & A with Inderpreet Singh PERSON OF THE WEEK: Meet Onnicha Chokviriyakorn, Bata Awards Winner Zimbabwean Fans Cheer the Return of PataPata Bata Malaysia Team Shares Chinese New Year Together We Are Bata People: Parrish Tan Sends In a Selfie South Asia South Asia South Asia New from Bata Indonesia: Oktav Is a Perfect Match for Today s Customer Bata India Honors Long Service Award Recipients Historic Republic Day Celebrations at BCP India Schools Bata Best Sellers: Paola is Chile's Favorite Girls School Shoe

2 CORPORATE An Announcement from Chris Kirk on Executive Changes Dear colleagues, and output of our BSO shoe production. I have the pleasure of informing you of some key executives changes that will take place within our organization and which are effective as of April 1, Carlos Garces, currently Company Manager in Indonesia, will move to South Africa to take on the role of Company Manager, with the main objectives to revamp the business in retail, refocusing on the wholesale division and improving our manufacturing quality and efficiency. Roberto Longo currently President Customer Services will take on the position of Group Managing Director, AsiaPacific. With over 30 years of experience in the organization and a deep knowledge of the Asia-Pacific region, Roberto s main priority is to recapture our leading position in a very short time, and regain the profitability that the region has historically always contributed to the Bata Shoe Organization. Ronjoy Sengupta, currently responsible for Bata South Africa and Region Coordinator, will take the position of Acting Group Managing Director, Africa. Ronjoy s international working experience will help him to establish excellence in retail, branding and manufacturing operations in the Africa region. Imran Malik will take on the position of Company Manager in Indonesia. I would like to thank Imran for his contribution to the region and for his involvement in the establishment of the new business in Vietnam and the Philippines. I am confident that these changes will allow us to take full advantage of the huge opportunities we have in Asia-Pacific and Africa, driving the implementation of business processes so as to significantly improve both of the regions profitability. The primary tasks of Imran in Indonesia are: I wish to extend my sincerest congratulations to Roberto, Ronjoy, Imran and Carlos and wish them great success in their new roles. To bring Indonesia back to a topmost profitable company in the organization, improving our domestic, retail and branding operations. Re-engineer the company production facilities to make Bata Indonesia the leading factory in productivity, efficiency and quality. In addition, Imran will reinvigorate the BSO Manufacturing Product Development Centre based in Indonesia, with the objective to develop and disseminate within the BSO exclusive new volume designs which will maximize the efficiency Sincerely, Chris Kirk Bata Group Chairman

3 INTERVIEWS Q & A with Inderpreet Singh Inderpreet Singh was recently promoted to head of retail for Bata India from his previous role as company manager of Bata Sri Lanka, where he achieved notable success for the company. Bata World News spoke to him to learn about his new role, and his experiences in Sri Lanka. What has been your proudest Bata moment so far? My happiest moment so far with Bata is when Bata Sri Lanka was able to deliver 128 percent growth in retail at the end of 2015, after several years of decline. The entire team had worked hard with focus on like-to-like store growth, delivering 123 percent comparable store growth. Also, the same year, the Bata Sri Lanka factory was able to break even after several years of losses. I am proud of the achievements of my team in Sri Lanka. As head of retail at Bata India, what do you consider to be your most important task? As head of retail at Bata India, the most important task is to build a passionate retail team that is clearly focused on delivering exceptional growth on retail KPIs like UPT, Conversion, Pairage Growth and ASP. I would like to focus my team's energies, and mine, on delivering excellent comparable store growth. What are you currently focusing on in India? Are there any new or current products that you are particularly excited about? The Indian market is experiencing a period of growth due to the increasing digital market. We would like to use technology and the digital world to our advantage, and build a strong omni-channel offering, where the customer can be seamlessly moved between digital and bricks-andmortar stores and vice versa. We are piloting this project, and I am excited as this can bring a new wave of growth in years to come for Bata India. How is new technology being used to expand retail options in the region? Technology is being widely used in the region to reach out to those customers to whom retail has not been able to reach out. We are also using technology to build a strong database of our customers through the Bata Club, and to reach out to them with propositions more suited to their tastes and preferences. The digitization of products, and having an omni-channel presence, would definitely bring in benefits in terms of retail. How would you describe your management style? To take care of people in the team and to have a human side to business is what describes my management style. What changes do you expect to see over the coming year in India? India is a young country, and the consumption and selection patterns of its youth are very different from its mature citizens. Their ability to make decisions depends more on social media and the digital world. As I said earlier, having an omni-channel presence, and being able to position Bata as a preferred choice of footwear for this youth is what we look forward to, and the team is working on that aspect. What is the best piece of advice you have received while at Bata? Before I moved on to Sri Lanka, I was advised to be a patient person and act more like a leader and a good human being than just a boss, and lead the team from the front in every department of the business. I acted on the advice, and found it to be very useful during my stay in Sri Lanka, and I maintain the same philosophy going forward. The advice was given to me by both Mr Rajeev and Mr Carbajal, and I thank them always for the same. In your opinion, what do customers most value about Bata and its products? They value comfort and durability in our products. In India we hold a strong foothold in the comfort domain, and are now moving to evolve as comfort with style.

4 INTERVIEWS PERSON OF THE WEEK: Meet Onnicha Chokviriyakorn, Bata Awards Winner The Bata World News team interviewed Onnicha Chokviriyakorn about a project she helped make a resounding success and a winner of the Bata Awards: the Bata Procurement System mobile app. After spending last year at China Footwear Services, where she worked on the app, she is now a product manager at... Can you give us an overview of your career at Bata so far? I joined Bata Thailand in 2011 as a buyer. I was in charge of PataPata and the children s category. It was a great year for me in that I was a part of the Bata Thailand team that developed license collections Angry Birds and Walt Disney and the results were tremendous. In 2015, I got a one-year opportunity to work at China Footwear Services in Guangzhou as a Group product coordinator, mainly supporting countries in Asia-Pacific and bringing better understanding and communication to all. There, other GPCs and I started to implement the BPS mobile app project together with the CFS supply chain team, always supported by Tata Consultancy Services. At present, I m responsible for Diversity handbags and accessories which is a new step in my career. What do you credit for your success? I ve always believed in teamwork, and I can say that I ve been lucky to have good colleagues or teammates who always support each other. I personally keep telling myself, Where there is a will, there is a way, so I will put my heart and soul into everything, and success is at hand. Your BPS mobile app won the 2015 Bata Awards in the Count on Me category. How does it feel? I was very happy, and thanks to all the people involved in this project. We worked together to make the BPS mobile app a success, so it s an honor for everyone to win the award. What about the BPS project do you think won over the panel of judges and then your colleagues around the world who voted for it? This project has received a positive response from all its users, as it improves the overall process of committing to buys during SRMs [Shoeline Review Meetings] for all regions up to now. The app is extremely convenient, easy and quick to use, and it allows flexibility as it can be used on portable devices. It s no wonder why buyers love it. Yours was a team project. What helped you work together throughout the process? Because we had the same direction, we went through discussions and shared our opinions with open minds to ensure we could get the application to perform smoothly during SRMs. What was your contribution to the project? I facilitated the smooth rolling out of the project in my region and ensured all the buyers understood the key functions of the application and how it linked to the web version or laptops very well. As a Bata Awards winner, are you looking forward to the trip to Canada in May? Traveling and exploring is always exciting. It would definitely be an amazing trip to visit the Bata Shoe Museum and experience its historical and cultural footwear, as well as the Bata Innovation Lab in Toronto. Is there something you wish more Bata people knew about CFS? China Footwear Services is constantly trying to provide a platform to all buyers for efficient buying. They work with enthusiasm to support countries in any case.

5 MANUFACTURING Zimbabwean Fans Cheer the Return of PataPata Bata Zimbabwe is making history. Nine years after PataPata was last produced in the country, the iconic flip-flops known and loved by so many are back. This year, Bata s Gweru factory is once again making PataPata after having regained the necessary expertise and economic conditions. There was a nominal investment involved to refurbish machinery that had been standing idle. The revival of PataPata production has stirred excitement within the marketplace and staff alike. The team likes referring to the project as the sleeping giant and is enthusiastic about being able once again to meet demand. The relaunch is expected to boost volume business for Bata Zimbabwe. The moniker PataPata comes from the sound these flip-flops make when worn, as they slap the floor and sole of the foot. The brand became a household name and a highly versatile shoe in Zimbabwe and southern Africa. From simple casual wear, this footwear morphed into an integral part of school uniforms and even into a fashion statement. Though ideal for summer, these flip-flops are also useful in the rainy season, and they work well as indoor slippers during the mild winters of southern Africa. Choices continue to expand: once available only in yellow, the current collection also includes green, blue and red. After importing PataPata for the past two years, Bata Zimbabwe began domestic production in mid-january. The local and regional markets have welcomed with open arms the 30,000 pairs currently being manufactured per week. In response to demand, in mid-february the manufacturing team increased their ultimate production target to over 50,000 pairs per week. Not only has Bata Zimbabwe embarked on a sentimental journey with this beloved product, it has stayed true to its commitment to respect communities and individuals. Through the development of additional associated business units, communities have been given the opportunity to participate in the PataPata manufacturing process. The sole drilling, strapping, cleaning and packaging have been outsourced through ABUs, creating additional jobs. The in-house production of the PataPata promises to change the playing field of the shoe market in Zimbabwe, merchandising manager Moreblessing Shumba commented. With its low entry price point, we have catered to the tough economic environment and challenged cheap imports with a good quality local product. Production manager Mathias Musungapasi echoed her sentiment. The manufacturing team is excited to revive the production of the PataPata. The market demand thus far promises to keep us very busy, and we are up for the challenge. Thanks to the expertise of the current team, led by company manager Ehsan Zaman, efficiency and cost control are the cornerstones of this project. Not only is Bata Zimbabwe aiming to meet demand for an iconic product, it aims to do so while bringing in volume business from local and regional customers.

6 PRODUCT New from Bata Indonesia: Oktav Is a Perfect Match for Today s Customer Bata Indonesia s product development department in Jakarta has unveiled a new project that is sure to become a footwear favorite. Called Oktav, this shoe has it all for today s customers with casual lifestyles. It s made with premium leather but is also lightweight and comes in up-to-date designs. The Oktav is available in four styles, all with ethylene vinyl acetate outsoles. For customers who love the fashionable look of a white outsole, there are uppers in blue suede, perforated tan leather or a combination of dark brown leather and canvas. For those who prefer the perforated black leather upper, the outsole is also black. The Oktav will be produced to a high quality standard and at a very competitive cost at Bata Indonesia s manufacturing facilities in Purwakarta. It will soon be on the market and available to Bata sister companies. For the local market, the team is developing a marketing campaign to be launched in June across Bata Indonesia s 87 City stores for the Eid holiday season. Our product development department has developed a new collection with a contemporary design in premium leather material, company manager Carlos Garces commented. With an EVA outsole, it is certainly lightweight footwear for casual use: a perfect match for today s lifestyle and fashion.

7 CORPORATE Bata India Honors Long Service Award Recipients On Feb. 10, Bata India organized a Long Service Awards ceremony in Gurgaon, to celebrate those employees who have recently reached the milestones of 15, 20 and 25 years of service. The ceremony was attended by Group Chairman Chris Kirk, who also presented the awards. Kirk was joined on stage by Rajeev Gopalakrishnan, Group managing director of South Asia, and Shaibal Sinha, Group operations finance director. Employees receiving an award for the completion of 25 years were also accompanied by their spouses, in recognition of the importance of family support during a long career. During the event, Gopalakrishnan addressed the audience, and invited some of the awardees to share their experiences during their time with Bata India. The recipients were honored to receive their awards from Kirk, as a token of their long association with the company. Addressing the recipients, Kirk stated: It is great to be amongst all of you who have spent most of their working lives with Bata India, and have contributed to the growth of the organization. A Lifetime Contribution Award was also presented to Enrico Tonolli for his long service with Bata, which began in Tonolli was delighted to receive the award, and shared his experience of working at Bata with the audience. Concluding the event, Gopalakrishnan added: Bata India would not be where it is without the contribution of all of you present here today. He also thanked the families of the awardees, explaining that without their support, the employees' journeys with Bata would not have been possible.

8 BCP / SUSTAINABILITY Historic Republic Day Celebrations at BCP India Schools On Jan. 26, volunteers from the Bata Children's Program (BCP) India celebrated the country's Republic Day with staff and students from the BCP India schools. A variety of activities were organized in honor of the special date, which marks the day in 1950 on which India's constitution came into force... More than 20 BCP volunteers helped in organizing the event, and the schools were beautifully decorated with tricolor balloons and national flags. Children sang and danced to patriotic songs saluting national and unsung heroes who laid down their lives for the country, in their struggle to make India independent. Students of Class 3 at Batanagar school put on a nicely choreographed aerobics performance, while the Bataganj students of Class 7 gave a demonstration of their self-defence skills. Volunteers also distributed snacks and sweets to everyone present on the occasion, marking India's 67th Republic Day celebration. Speaking during the event, Anoop Yadav, a BCP volunteer and part of Bata India's admin team, commented: It is necessary that we celebrate these important days with the students at our schools, as they should learn the importance of these occasions. These events also give an opportunity to the volunteers to participate and do their bit.

9 CORPORATE Bata Malaysia Team Shares Chinese New Year Together Bata Malaysia embraces its home in a multiethnic and multicultural society, and on Feb. 16, the team went all out for the Chinese New Year. Bata Malaysia celebrated the holiday, also known as the Lunar New Year or Spring Festival, with a staff luncheon and Lion Dance performance. The Lion Dance combines a high degree of agility, strength, stamina and elegance, and the performance is believed to welcome good fortune. The luncheon kicked off with remarks from company manager Paolo Grassi in the 19thfloor garden of Menara Bata, as the building that hosts the company s Kuala Lumpur headquarters is known. As is the company s tradition, we celebrate the Chinese New Year as it is an auspicious occasion for a joyful celebration and building closer ties within the team here in Bata Malaysia, he explained. The gathered employees were presented with ceremonial yee sang, also known as a prosperity toss, a fish dish that symbolizes good luck, prosperity, health and all things auspicious. Employees babies born this January or February were also celebrated the same day, and birthday party games helped everyone join in the festive spirit and bond with colleagues.

10 INTERVIEWS We Are Bata People: Parrish Tan Sends In a Selfie Parrish Tan is Bata Singapore's marketing manager, and he recently sent in a selfie taken with some of his colleagues, during a rare quiet moment over the Chinese New Year period in the country. How do you fit into the Bata world? I am the marketing manager for Bata Singapore. I am also the regional Bata Club and regional marketing manager. Who is in your selfie? Myself; Jaz Hang, Bata Club manager; Lionel Tan, merchandising manager; Stephanie Chua, customer service; Mandy Koh, planning and distribution manager, as well as buyers and merchandisers from the Singapore merchandising team. What does it show? We took some time away from serious work in the Bata Singapore office on the day when the Lion Dance troupe were performing, in order to take this selfie. Everyone was shouting Huat which means luck, and which is often heard during auspicious occasions such as Chinese New Year. It shows that the Singapore team has no boundaries across the different departments and everyone works closely together for one common goal: to grow the business in Singapore. What do you like most about your job? What I really love about my job is the dynamic people that I interact with everyday. They are able to feed me with different ideas, and their opinions and feedback help me to be creative in our marketing effort in order to speak to our target customers effectively. Want to send in your Bata selfie? Just a few photos you take of yourself, alone or with colleagues, to bwn@bata.com. Show off your creativity! Photos must be horizontal, and be sure to use the largest file size allowed on your camera or phone.

11 Powered by TCPDF ( PRODUCT Bata Best Sellers: Paola is Chile's Favorite Girls School Shoe The Paola, by Teener, is one of Bata's most successful shoes in Chile. The model has been a firm favorite in the country for over 10 years, thanks to a combination of styling, comfort and technology. Teener is Chile s leading brand in the school category, and has an impressive history of being able to create what Chilean teenagers want, as well as offering comfort and safety when walking. The Paola is a very easily recognizable school shoe in Chile, seen on the streets and inside the country's classrooms. It combines the simplicity and elegance of a classic model with the comfort and versatility of a sports model, meaning that it has remained a popular choice both inside and outside the classroom. The features of the shoe include a genuine full-leather upper; reinforced seams in the areas of greatest wear, and a breathable inner-lining fabric. The Paola also boasts Aegis antibacterial technology in its insole. The main reason that girls in Chile want to have a pair of Paola shoes in their wardrobe however, is because they consider it to be the most beautiful. One key strategy in terms of the Teener brand has been its positioning on social networks, and the development of associated web pages, as this helps to spread the word among the target market, for whom social media is an important resource. Hernan Vizcaya, company manager of Bata Chile, commented: In Chile, Bata has a long tradition in the school segment. Our customers recognize us as the place to find school shoes, accompanying children and young people for decades on their return to classes. If we can also incorporate trends in our models, even better. In this way, we can capture a greater market share, and provide what our customers want. The Paola is available nationwide, in all Bata stores, as well as on the company's website, and through other major retailers in the country.