NEWS FROM AROUND BATA WORLD WEEKLY DIGEST. Bata World Digest February 19, 2016 INTERVIEWS. Q & A with Pierluigi Pontecorvo

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1 WEEKLY INTERVIEWS Q & A with Pierluigi Pontecorvo Pierluigi Pontecorvo is company manager of Bata Singapore, and he recently spoke with Bata World News to discuss developments, and highlight some of the initiatives that are currently underway in his region. MARKET TRENDS INTERVIEWS STORE Bata Czech Republic Launches Online Blog: Bata Lounge Person of the Week: Meet Gary Yee, Bata Awards Winner Bata Singapore Begins Competition for Best Store Staff BCP China Teaches Children about Chinese Zodiac Bata Best Sellers: Style and Comfort with Thailand's Classic Pump Latam Bata Group Bata Group Bata Mexico and Employees Celebrate 25 Years Together We Are Bata People: Prakash Joshi Sends In a Selfie New Footin Website Is a Big Step Forward Bata Shoe Museum s New Exhibition Displays Rare Arctic Footwear

2 INTERVIEWS Q & A with Pierluigi Pontecorvo Pierluigi Pontecorvo is company manager of Bata Singapore, and he recently spoke with Bata World News to discuss developments, and highlight some of the initiatives that are currently underway in his region. How have you begun 2016 in Singapore? What have you been focusing on? The new year has started fantastically! We exceeded our targets for top and bottom line, and in February we are on track to do the same. In January we attained very good results in BTS, and now we just passed Chinese New Year with the same results. It is giving the team confidence as we have been planning this period together since October. Our main focus is on merchandising mix, price point, visual merchandising, customer service, team building and training. What do you intend to dedicate most time to in 2016? Our customers and my team are the pillars of my belief. For this reason, my main efforts are in the direction of creating a good, customer-oriented work environment. More specifically, we are focusing on operational excellence, customer service and refocusing on the collection, starting from the customer's perspective. My team and I have created the roadmap to reach these goals, and every team member has specific KPIs to ensure we stay on track, and to take action in case it is required. In November last year, you received a Golden Jubilee Business Award as company manager of Bata Singapore. How did the company achieve this? This award was given as result of many years of contributing to the economy of the country. Bata has been established in Singapore since 1931, and during this long time it has proudly been part of the local community, and has contributed to its growth. How did you feel when you accepted the award? I felt, and I am still feeling, very proud. Talking to the people who attended the ceremony, I had the confirmation that Bata is a well-known brand, one that is part of everyone s lives. Which of the Bata Core Values do you think best describes your management style? I believe in all of the core values, and I try to show that in every action I do. I think that Serve with Passion, Count on Me and Be Bold are those most visible in my management style. What changes do you expect to see in Singapore over the coming year? Regarding Bata Singapore, we have planned, and I am expecting to see, a gain in market share, despite a difficult economic scenario. People rarely change their habits. They keep spending, maybe less, but always on their usual brands. We are building a new collection to be sold in an environment able to create a pleasant shopping experience. What is the best piece of advice you have received about your job? I have received a lot of good advice, so it is difficult to decide which is the best. The one I try to follow everyday is: work hard and with passion, and never forget that whatever the goal set in your mind, you can only reach it through your team. How would you like to see business in Singapore develop in the future? Business doesn t happen by chance. Our business plan for the next three years is mainly based on the improvement of internal processes, to be able to offer to our customers the right shoes at the right time, and at the right price. I firmly believe we also need to expand, opening

3 Q & A WITH PIERLUIGI PONTECORVO iconic stores such as at the airport. Ideally Bata Singapore should have 55 to 60 stores we currently have 43 in order to cover all of the market, and to have more power when buying. What do you think will be the most important elements to ensure success for Bata in the region? Success is the result of combined efforts and ingredients. Like a recipe, by changing even a small quantity of any component, the taste may be completely different. Business is a complex machine, and each mechanism must play its part to ensure the final result. Besides that, I believe people are the key to getting anywhere. So in this region, as everywhere, having the right people in the right place, and with the right support, is the key to success.

4 MARKET TRENDS Bata Czech Republic Launches Online Blog: Bata Lounge Bata Czech Republic recently launched its new online blog called "Bata Lounge," designed to provide readers with fashion tips, as well as stories and trends from leaders in the fashion industry. The word lounge by definition emphasizes a mood of well-being and relaxation. Building on this mood, the blog aims to enhance every moment of its readers' lives, providing inspiration and information to assist with the eternal question of what to wear. It has been created by the newly established online public relations department, managed by the multi-channel center in Prague. The Bata Lounge blog, which has so far been read by over 15,000 readers, was created mainly for Bata customers and anyone who loves shoes. Its purpose is to disseminate the good reputation of the Bata brand through online media, and the articles are divided into a variety of interesting categories. The first and most important category is Collection, and focuses on Bata's product portfolio. The articles cover products from the current season, fashion trends, timeless models and technology. Readers can find inspiration for their purchases, as well as useful educational information. The "Backstage" category offers readers an insight into the company's work and the remarkable history of the Bata company. It discusses the details of the complex yet interesting buying process at Bata, explained by Jiri Chudarek, who is in charge of the entire Czech buying department. The "Lifestyle" section deals with different ways of living, and focuses more on what is trending, while revealing interesting facts about everyday life, culture and fashion. The "Guests" category is a platform for bloggers and famous personalities who love the Bata brand and shoes. A recent guest was Pavlina Jagrova, a famous blogger who was invited to discuss dresscode themes. Martin Lysoněk, head of multi-channel at Bata Europe, commented: "The purpose of our blog is to expand Bata s brand perception as a market leader in shoes and fashion. From the perspective of building a relationship with the brand, a blog is a place that resonates with customers' expectations, while also giving us a good opportunity to address and connect with a younger target audience." He added: "The whole concept builds and expands on stories that are tied to our collections, moods and lifestyles, and is naturally complemented by online PR s collaboration with leading bloggers and vloggers. We are also doing our best to bring this experience to our retail stores."

5 INTERVIEWS Person of the Week: Meet Gary Yee, Bata Awards Winner Gary Yee is supply chain management manager at CFS, and together with his team recently won the "Count on Me" category of the Bata Awards 2015, for their mobile procurement app project. Bata World News spoke to him to hear his thoughts on the win. You have been with Bata for over 10 years. What would you say has been your most memorable moment? This is my 13th year with Bata, and being one of the pioneers of the Bata group sourcing office based in China, there have been many memorable moments. If I had to pick one, I would say meeting Thomas. J. Bata, together with Mrs. Sonja Bata, in person for the first time in To become a member of the big Bata family was already a privilege, and to be able meet the legend himself was just priceless. You are currently supply chain management manager at CFS. What do you most enjoy about your role? CFS is unique in Bata, and I believe the supply chain management department in CFS is currently one of its kind in the Bata organisation. A little more than two years ago, the department did not even exist. There were many workflows and processes that had to be put in place in order to ensure the department, and the centre as a whole, functioned efficiently and smoothly. Getting the goods to the companies on time and at the right time is one of the most important aspects of the sourcing and supply chain centre, and in order to do that, we had to reinvent ourselves and put some critical KPIs in place to ensure we delivered. The current role has presented me vast learning opportunities from day one, so I must say that the challenges to put the processes in place and opportunities to learn, especially from experts like Mr. Simon Tidball and Mr. Joseph Choi, are what I enjoy most. What, in your opinion, has been the reason for your success? One reason is perhaps due to this simple line: Never say never. This is a line I believed in even before I joined Bata. However, it was further affirmed after I joined Bata, as Mr. Roberto Longo, who provided me the opportunity to work for Bata, also told me the same thing. I always believe in doing what you can do at your level best, but at the same time also pushing a little further and working hard creatively, as there are always opportunities to do the job more efficiently by putting in a little extra effort. Apart from that, I must say that I also had the privilege to work with some inspirational and knowledgeable bosses throughout my time at Bata that have given me the opportunity to progress from where I started. Your mobile procurement app project won the Count on Me category of the Bata Awards How does it feel to be one of the five category winners? Ecstatic! It is obviously a great feeling knowing that we have won this category. I wouldn t call this my project, but rather a project for all, by all, which was the brainchild of Mr. Longo. The whole idea of implementing this mobile application was to create and improve a smoother and more efficient workflow for all buyers. Knowing that the app has been wellreceived by buyers is already a win for the team. What aspects of your entry do you think convinced people to vote for your team's project? The buyers have spoken, I think is an appropriate quote to use here. The userfriendliness of the app is one key aspect of its success. The user-adoption rate speaks for itself, as the usage report for the July 2015 SRM climbed to 97 percent, after the app's launch in April.

6 PERSON OF THE WEEK: MEET GARY YEE, BATA AWARDS WINNER There was a lot of collaboration involved in your project, both with Bata colleagues and with Tata Consultancy Services. How did this help its development? Everyone involved in the project helped make it a success. The initial idea of the mobile app came from Mr. Longo, and at that time Tata Consultancy Services was already working with us on the Bata procurement system. They not only worked with us on this, but also helped us to set up the standard operating procedures for the sourcing centre. Hence, they have an in-depth understanding of what was required for the BPS and the mobile app. The Group product coordinators were also attached to CFS, and one of their main responsibilities was to bridge communications between CFS and Bata companies. Being from the respective regions of Africa, South East Asia, South Asia and Latam, they are able to communicate more efficiently with the buyers from each region. How are you feeling about presenting your project in Canada in May? What are you most excited about? It is obviously exciting knowing that there is an opportunity to present the project to the board of directors in Canada. I am most excited about presenting the project to the directors, visiting Bata office premises in Toronto for the first time and sharing the success with the other award winners. Finally, is there anything you wish more people knew about CFS's role in the Bata organization? Yes, it would be nice if everyone understood better what CFS is all about. CFS is essentially a non-profit service and support centre to the Bata organization, providing support on product sourcing especially to the brand team, vendor management, costing management, order processing, product quality assurance, production planning and monitoring, compliance management, logistics support and claims management. By organizing and coordinating the SRMs, all Bata companies convene to select the products prepared by the brand and product teams, in the hope of creating economies of scale which will translate into better products at the right prices.

7 STORE Bata Singapore Begins Competition for Best Store Staff Bata Singapore recently announced a new contest for store staff and managers, awarding prizes to those who receive the most positive comments from customers. The aim of the competition is to reward front-line staff for their exemplary customer service. The member of staff with the most recognition, in terms of compliments from customers in a month, will be awarded a certificate of excellence as Star of the Month, and will be put into the running for Star of the Year. The winner of Star of the Year will receive a special certificate, as well as the prize of a two-day spa staycation for two people at a Holiday Inn, 150 Singapore dollars in shopping vouchers and a special "Star Service" pin. The store manager with the most compliments will also run for Star of the Year, and the winner will receive a threeday spa staycation for two people at a Holiday Inn, 300 Singapore dollars in shopping vouchers, and a special "Star Service" pin. The winning store manager for January was Terence Tan, and stars of the month were Jason Tan and Mohammad Syzawan. The winning store was Ang Mo Kio Outlet, in the north of Singapore. Pierluigi Pontecorvo, company manager of Bata Singapore, commented: Customer service is the pillar of our business, and I strongly regard all our colleagues at store level as the most important people in our organization. They are the ones that will decide if our customers return to our stores or leave with a frown. This initiative is to reward and motivate our colleagues with the passion to serve.

8 CORPORATE Bata Mexico and Employees Celebrate 25 Years Together Bata Mexico recently feted five members of the team who have been working for the company for 25 continuous years. In December, these employees each escorted a proud family member to a dinner at a traditional Mexican restaurant, Antigua Hacienda de Tlalpan, in Mexico City. They were joined by company manager Luis Pinto, finance director Carlos Gómez and HR manager Santiago Pazos. The managers presented each long-serving employee with a certificate signed by Thomas G. Bata along with a Swiss watch and crystal trophy. Pinto remarked, "We express our enormous gratitude for the contributions made by these employees, their dedication and loyalty to the Bata Shoe Organization and our deepest respect for their careers." This year, five Bata people reached the quarter-century milestone in Mexico. All of them are family men with grandchildren, and they explained to Bata World News their loyalty to the company. Javier Badillo participates every year in company-organized soccer tournaments. I have had great satisfaction in my career as production supervisor, and I am very grateful to Bata for the opportunity, he said. Román Mario Velázquez, label machine operator, commented, Working here, I feel at home: happy, satisfied and grateful for the opportunity to belong to this company that has given me so much. Vicente Bernal, sign maker, participates in various company programs, including the Bata Children s Program and soccer tournaments. During all these years that I ve been in Bata, I have always felt supported and my work welcomed, he said. Jaime Sánchez, IT manager, commented, Working for Bata has always made me feel good. I am delighted with my performance within the company, and I take each day as a new challenge. Finally, Simeón Cruz, chief of molds, summed up his 25 years: It has been very satisfactory working all these years in Bata. It is a pleasant feeling because I do training every day, and my job has given me the opportunity to meet people from other countries. I am happy and very grateful to the company and all my colleagues.

9 INTERVIEWS We Are Bata People: Prakash Joshi Sends In a Selfie At the Power office in Toronto, Canada, they don't just talk the talk. Fitness is a real priority, and every day the team does a short workout together. Prakash Joshi filled in Bata World News about their Fitness Challenge. How do you fit into the Bata world? I have been working for Power Athletics Ltd. since June Currently I am the finance director. Who is in your selfie? Shiv Chatterjee, global brand manager; Jim Russell, director of the Bata Innovation Lab; me; Trung Tran, intermediate designer; and Ethan Lee, junior designer. What does it show? What is the story? In this photo we are doing the usual boxing cardio routine as part of our Fitness Challenge. Every day at 3 p.m. we all gather in the front lobby, play a song out loud and exercise for five minutes. I am in charge of reminding everyone that it s time to do our daily workout! After the exercises, we are back to our desks with more energy and ready to work even harder. If we want to inspire everyone to be active and to have a fitness-oriented lifestyle, we should be the first ones to practice it. That s what we are doing in the picture. This is also the perfect opportunity to spend time with each other and to strengthen our teamwork. What do you like most about your job? I enjoy working in a multicultural environment with team members of diverse ages. I like the constant challenge of making the most of our limited resources. Finally, I am really looking forward to taking Power to the next level of global brand building. 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.

10 MARKET TRENDS New Footin Website Is a Big Step Forward Footin recently launched its new website, featuring increased functionality and a clean and simple design allowing it to showcase its products and promotions. The new site also includes a news section that highlights trending topics and fashion news from around the globe. The new website is part of a number of initiatives from the regional office in order to provide constant and more efficient channels of communication with target consumers. One of the main features of the website is that it is e-commerce ready, which will ultimately allow Footin to be an omnichannel business, and remain up-to-date with major market trends. The website is managed locally, giving more control of the content, and allowing it to work in tandem with local marketing activities, as well as interacting with online news. Patricio Alegria, Footin regional development manager, commented: One of the keys of our business is to be where our consumers are, and this applies from strategic store locations to the correct online presence. Today, close to 50 percent of our shoppers' purchasing decisions are influenced by online enquiries, and more than 50 percent visit a store after doing a quick search on their mobile phone. This is why the new website is fully responsive, and can adapt and resize according to the different size of device being used to view the page. Footin hopes that the new browsing experience will increase customer interaction, both online and offline, allowing cross-platform communication, from the Facebook fan page to its Instagram and Twitter accounts.

11 BCP / SUSTAINABILITY BCP China Teaches Children about Chinese Zodiac In preparation for the Chinese New Year, eight volunteers from the Bata Children s Program (BCP) China organized an activity with a Chinese zodiac theme in Guangzhou, to teach children about the origins of the zodiac through storytelling and relevant hands-on activities. The children were excited to learn the origins of zodiac, and they asked questions with interest as they listened to the stories. The volunteers taught them how to make lanterns, and to use red paper to cut out patterns of the Chinese zodiac. The children then decorated the lanterns with drawings and by cutting designs into the paper. During the activity, which provided valuable understanding of an important part of traditional Chinese culture, BCP China also donated books and bags to the children, rounding off a truly memorable and educational day. Carol He, a first-time BCP volunteer, commented: A warm smile is the universal language of kindness, and children give the warmest smiles. It always gives me enough courage to go ahead. I feel very happy with these children.

12 PRODUCT Bata Best Sellers: Style and Comfort with Thailand's Classic Pump For over eight years, Bata Thailand's Classic Pump has been a favorite with Thai women for both office and university wear. Its simple elegance, competitive price and high level of comfort makes it a natural choice for a variety of situations. First launched in 2008, the Classic Pump is available in black, and has an insole that massages the wearer's feet thanks to its bubble design. It is sold in both City and Family stores as it is popular with both rural and urban customers alike. This can also be seen from the sales, with 35,000 pairs being sold every year. The shoe is made from PU and is available in three different heights, to provide a perfect fit for any occasion. With a retail price of just 499 Thai baht, it is also affordable for everyone in its target group. Naruporn Potivongsajarn, merchandising manager of Bata Thailand, commented: "This is a popular shoe for university students and officers: comfortable and easy to wear every day. It has served customers for over eight years, and we always repeat production of these pumps, to keep up with customer demand."

13 Powered by TCPDF ( CORPORATE Bata Shoe Museum s New Exhibition Displays Rare Arctic Footwear On Feb. 10, the Bata Shoe Museum opened its newest exhibition, Art & Innovation: Traditional Arctic Footwear from the Bata Shoe Museum Collection. Drawing from the museum s extensive circumpolar holdings and building on information gathered during museumfunded research trips to Arctic nations, the exhibition offers rare examples of footwear, clothing and tools from the From inventive technologies skillfully used to ensure survival and comfort to intricate decorative techniques used to proclaim cultural identity, the incredible range of circumpolar attire featured is a stunning testament to the art and technology of dress found in the Arctic. At the top of the world, the Arctic spans over 14 million square kilometers. The landscapes of this circumpolar expanse may seem harsh and inhospitable, yet the region is home to over 40 distinct cultural groups. These communities have thrived for centuries by creating sophisticated clothing that has allowed them to embrace the unique opportunities and surmount the challenges of living in the Arctic. The circumpolar collection of the Bata Shoe Museum in Toronto, Canada is the result of the vision of founder Sonja Bata, the fieldwork of several adventurous scholars and the generosity of makers from across the Arctic. From the 1970s to the 1990s, the Bata Shoe Museum Foundation supported research trips to the Arctic with two important objectives: to collect examples of footwear and clothing and to learn directly from makers about the ways in which Arctic footwear and clothing is produced and worn. When I founded the Bata Shoe Museum, my vision was to establish a global center of knowledge on the history of footwear and shoemaking, Mrs. Bata said. I was particularly determined, in our fastchanging world, to contribute to the documentation of indigenous shoe patterns and designs. I wanted to understand how this footwear was made by local craftspeople, what the locally available materials were and how their patterns and decorative treatments reflected local cultures and customs. As a Canadian institution, we funded field research trips to the Canadian Arctic, but we also selected several diverse circumpolar regions and sent field researchers to Greenland, Alaska, eastern and western Siberia and Sápmi, the Sami homeland. Every one of these shoes has a story to tell. The objects in the exhibition were collected in the field directly from the makers and wearers, who shared their knowledge with museum researchers through interviews and demonstrations. The exhibit s guest curators, University of Manitoba professors Jill Oakes and Rick Riewe, conducted the majority of these field trips and, through their efforts, have helped the museum amass an extraordinarily rich and diverse Arctic collection. Living, traveling on the land and working with Inuit in the field, we were introduced to the meaning and importance of traditional clothing, footwear and tools, said Jill Oakes and Rick Riewe. As one hunter in Arviat explained, his skin clothing was more important than his skidoo or gun. Our research focuses on facilitating the sharing of northern peoples stories that their clothing tell and documenting diversity throughout the circumpolar region. The opening of Art & Innovation coincides with the Bata Shoe Museum s yearlong celebration of its 20th anniversary, once again showcasing the museum s role as a world renowned cultural institution dedicated to exploring the role of footwear in society. This beautiful and extraordinary exhibition is semi permanent.