Presentation at Sitra's Aamuharppaus event 12.6.2018 by Topi Lintukangas

1. 1
12.6.2018
Responsibility

3. 3
Company overview
• Reima sells ca. 7 million products annually
• Reima brand net sales doubled from 2012 to 2017
• Over 80% of sales come from international markets
• Ca. 15% of sales from own e-commerce
• Net sales of ca. 112 MEUR in 2017
THE LEADING SPECIALIST IN PERFORMANCE KIDSWEAR
2006A
150
2008A 2010A 2012A 2014A 2016A 2018LE
100
50
0
25,7
34,6
38,4 39,3
46,6
58,4 61,5 62,3
75,4 74,5
85,3
112,0
130,0
2017A2015A2013A2011A2009A2007A
REVENUE

4. 4
Designed to perform
Every Reima product is designed to perform and deliver uncompromising functionality for active kids’ needs.
All Reima products are designed to be non-toxic and safe for children, meeting all safety standards and regulations on children’s wear.
Tasteful simplicity, honest
and thoughtful design
Ultimate comfort with proper
fit and room for movement
Small practical details in
each design for unparalleled
functionality
Durable, easy-care garments Non-toxic and safe for
children to wear with high
lifetime value
AESTHETICS ERGONOMICS EXPERTISE EASY CARE RESPONSIBILITY
REIMA USES ONLY BEST, TECHNICAL-DRIVEN FABRICS FOR
UNPARALLELED COMFORT AND PERFORMANCE IN ALL WEATHER CONDITIONS

5. 5
obe,
see
eima
hich
ality
from
and
.
llion.
eing
ions
get
ocus
hain
We
ions
mfori
ieve
and
ngly
Yet, no matter howstrict our control is and howdiligent
ourauditsare,allbusinessbetweenusashumanbeings
is still heavily based on trust. We know our partners
and we talk to them every day. We, therefore, trust
them. Should a breach of this trust occur, our policy
is not to immediately discontinue the partnership but
rather to work and sort out the problems together
in order to improve their performance as well as
ours. Likewise, if we fail to comply with the ethical
standards we have set for ourselves, there is no way
out but communication, remediation and learning
from our mistakes. The process may feel painful but it
can only make us healthier.
Financial strength provides us with stability and
the resources to invest in business development.
The development will also be visible throughout
our corporate responsibility agenda. By constantly
improving and innovating, we are able to further
drive the sustainability of our business alongside the
industry. We have established a road map with clear
key performance indicators for the near future and will
present our targets in this document. In the coming
months and years, we will be closely monitoring our
progress.
It is important for our kids – and their kids.
CEO
Elina Björklund
LOOKI NG AT TH E WORLD AROU N D US
A global organisation like Reima can only achieve sustainable growth by adapting to the world around it, although
we may try to change that world for the better through our own actions. The current megatrends that affect
us are globalisation, climate change and decreasing birth rates in industrialised countries. We can identify the
effects of these megatrends in the following concrete trends that are now reshaping the entire textile business.
Megatrends
Understanding the importance of a healthy lifestyle is growing rapidly around the globe.
This health trend has been and will remain strong, and products and services supporting
both physical and mental well-being are expected to be on the rise. Studies have shown
that kids are moving less and less. As we become more aware of the positive effects of
physical activity in kids, more focus is being put on this critically important trend.
H E ALTH AN D WE LLN ESS ON TH E RIS E
As the clothing market polarises further, there is a growing number of consumers who
are willing to invest in quality over quantity. Clothing can be seen as an investment that,
at its best, enables an active lifestyle, improves performance and adds comfort. A global
interest in sustainability and green values makes high-quality clothing interesting, as it
gives clothes a high 2nd life value. This is especially true for kids clothing.
SAF ET Y-CONSCIOUS CONSU M E RS
FOCUS ON QUALIT Y
In recent years, we have experienced a clear shift in clothing trends from formal fashion
to a more sporty lifestyle. This trend can be seen with adults as well as with kids. Sporty
clothes are acceptable as all-round casual clothing – there is even a new term ‘athleisure’
to describe this new line of clothing. Kids wear comfortable, functional clothing on the
slopes, in the city and during the school day as well as in the parks and backyards.
COM FORTAB LE ACTIVE WE AR
I NSTE AD OF FAST FAS H ION

6. 6
LIFECYCLE MATTERS
PRODUCTION
& DELIVERY
USAGE
X TIMES
REUSE
materials
facilities
practices
need/impulse
to purchase
motivation
for second life
recycling
opportunities
Marketing communication & actions
1. 2. 3. 4.

7. 7
Nine KPIs for Reima
sustainability
The materiality matrix presented is the basis for
definingourgoalsandsettingReima’skeyperformance
indicators (KPIs) for sustainability. We have set the
KPIs separately for each block of the matrix.The goals
and KPIs listed here are the continuation of our long-
term commitment and activities in each area. In 2017,
we defined these cornerstones in order to continue
our sustainability activities in a structured way. Most
of the agenda consists of a few sub-tasks, and we
have set the overall targets based on the completion
level of the sub-tasks. The Reima Leadership Team
and the Reima Board of Directors both monitor the
achievement levels of these goals and KPIs.
Product safety is of utmost significance to us, and
all other sustainability activities revolve around it.
We consider a product to be sustainable when all the
related upstream activities are sustainable. We take
safety into account in design and R&D and continue
the assurance at the mass production level. We
follow country-specific regulations for making safe
products but strive to go beyond their requirements
and to apply the best possible practices. Greener
materials, e.g. organic cotton, can make products
safer as they are often produced in a sustainable way.
By introducing our “Green Line” concept in autumn
2018, we will be implementing even more sustainable
material options.
Product safety is
of utmost significance
to us, and all other
sustainability
activities revolve
around it.
Inroduce “Green product line”
during autumn 2018.
2.
Use of greener materials
& conscious choice
of materials
AGENDA &
ACTION POINTS
1.
Consumer safety –
Product safe for kids
Extend Reima’s product
safety requirement beyond
Regulation by 2019
3.
Better customer
satisfaction
The most preferred kid´s
performance wear brand in
all focus markets by 2021.
3.
Better customer
satisfaction
The most preferred kid´s
performance wear brand in
all focus markets by 2021.
7.
Restricting harmful
chemicals in production
beyond industry safety
requirements
Reima “Restricted Substance List”
(RSL) implemented by the end of
2018.
7.
4.
Human rights &
social accountability
Continue Reima’s periodic
screening process to oversee
human rights in
the supply chain.
6.
Business ethics
and best HR practices
Revise Reima´s data
management policy
according to General Data
Protection Regulation
(GDPR) by May 2018.
5.
Supply chain
transparency &
control for fair practices
Reima audit for all Tier-I
suppliers located in Amori
defined risk Countries in
2018.
5.
Supply chain
transparency &
control for fair practices
Reima audit for all Tier-I
suppliers located in Amori
defined risk Countries in
2018.
8.
Reduce
environmental impact
Reima “Environmental
audit” for
all major Tier-II suppliers by
the end of 2018.
8.
Reduce
environmental impact
Reima “Environmental
audit” for
all major Tier-II suppliers by
the end of 2018.
Reduce of
carbon footprint
9.
Reduce the amount of shipments to
bring the share under 5% during
2018. Strengthen communication
with consumers to help reducing the
impact by taking care reima clothes
properly.
9
KPIs
for Reima
sustainability

8. 8
5
S IS ON TH E N E X T G E N E R ATION
O
on top of designing products
that allow kids to move
more, we are dedicated to
building all our activities
as a brand around active
kids. We want to support
local communities in
activities that provide kids
o enjoy an active lifestyle and,
njoy the outdoors and fresh air.
sponsorships around the world.
home market, Finland, Reima is
en Liike (“Children’s movement”)
ses free afternoon playschools
be physically active and try out
17, Reima challenged kids from
create “One Million Hours of Joy”
e challenge.
In 2016, we introduced a completely new concept,
ReimaGO, to the market. A ReimaGO sensor enables
tracking the physical activity of a child. With the
special ReimaGO application, parents can inspire
their kids to move more. This concept has been
received well. Through ReimaGO, we have worked
together with day nurseries and schools in order to
help them offer kids activities throughout the school
day and to allow parents to understand just how much
their children have moved whilst in day care/school.
We now have more than 70 years of cumulative
experience and expertise in making clothing for kids
and our aim is to make the best possible functional
wear for kids globally. We never compromise on
product quality and safety in our design. Our products
also include manysafetyfeatures, such as detachable
hoods and reflecting details. We have put a great deal
of effort into making our collection as environmentally
sustainable as possible. We are especially proud that,
in 2017, we reached the milestone of producing all our
clothes 100% free of fluorocarbons. →
In 2017, we reached
the milestone of
producing all our
clothes 100% free
of fluorocarbons.

9. 9

10. 1 0

11. 1 1
Reima Little Planet
value proposition-
Discover the best hoods,
activities & services for families
in a city.
Play like a local, Dress like a local.

13. 1 3

15. Thank You!