NIKE, Inc. Corporate Responsibility Report FY07-09
CH 01
REPORT ELEMENTS
BUSINESS OVERVIEW
8
NIKE, Inc. Business Performance
9
Sales U.S./International by Percentage
10
Total Retail Stores
10
Employees 10
Labor 10
Locations
11
Properties 12
Distribution
12
Manufacturing
12
To access the full NIKE, Inc. FY07-09
CR Report, with additional features
including videos and an interactive
map, please go to
www.nikebiz.com/crreport.
GOVERNANCE, ACCOUNTABILITY
AND REPORTING
13
Reporting Practices 13
Board of Directors, Corporate Responsibility
Committee and CR Leadership 14
Ethics and Conduct 14
Stakeholder Engagement and
Report Reviews 14
Assurance 17
Reporting Recognition
18
Reporting Guidance 19
NIKE, Inc. Corporate Responsibility Report FY07-09
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NIKE, Inc. is the largest seller of athletic
footwear and apparel in the world.
We employ more than 33,000 people
globally, including more than 5,500
at our worldwide headquarters in
Business
Overview
Beaverton, Oregon. We sell products
in more than 180 countries around the
globe and we reported revenues of
$19.2 billion for the fiscal year ending
May 31, 2009.
Nike brand designs and sells products in three main product
lines — footwear, apparel and equipment. The products are
manufactured in approximately 600 contracted factories in
46 countries around the world. More than 1 million people,
employed by suppliers, shippers, retailers and other business
partners, work to help manufacture, distribute and sell products
around the world.
This section includes facts and figures on NIKE, Inc., and
its operations that provide perspective on our scope, scale,
influence and impacts.
AFFILIATE BUSINESSES
(PART OF NIKE, INC.)
• Cole Haan, which designs, markets and distributes
luxury shoes, handbags, accessories and coats
• Converse Inc., which designs, markets and distributes
athletic footwear, apparel and accessories
• Hurley International LLC, which designs, markets and
distributes action sports and youth lifestyle footwear,
apparel and accessories
• Umbro Ltd., a leading United Kingdom-based global
football (soccer) brand
NIKE, Inc. Corporate Responsibility Report FY07-09
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NIKE, INC. BUSINESS PERFORMANCE
NIKE, Inc. Revenue Performance
Fiscal Year 2005-2009
Five-Year CAGR 9%*
Revenue in millions
$18,627
$19,176
2008
2009
$16,326
$14,955
$13,740
2005
2006
2007
*Five-Year Compound annual Growth Rate (CAGR) based on Fiscal Year 2004 Revenue of
$12,253 million
NIKE, Inc. Return on
Invested Capital
Fiscal Year 2005-2009
24.5%
23.2%
22.6%
22.0%
2005
2006
2007
18.1%
2008
2009
*Return on Invested Capital calculation available in the financials section of our Investor Relations
Web site, www.nikebiz.com/investors
NIKE, Inc. EPS Performance***
Fiscal Year 2005-2009**
Five-Year CAGR 12%*
$3.74
$2.64
$3.03
$2.93
$2.24
2005
2006
2007
2008
2009
*Five-Year Compound annual Growth Rate (CAGR) based on Fiscal Year 2004 diluted EPS of $1.75
** EPS amounts prior to Fiscal Year 2007 have been restated to reflect the two for one stock split
that occurred in April 2007
***Reported EPS amounts include certain non-recurring expensese and benefits, such as
impairment and restructuring charges, tax settlements and other items. To see comparable
annual EPS amounts, please refer to our prior press releases and SEC filings.
NIKE, Inc. Corporate Responsibility Report FY07-09
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Five-Year NIKE, Inc. Stock
Performance vs. S&P 500*
Fiscal Year 2005-2009
60%
-18%
S&P 500
NIKE
*Performance of the S&P 500 and NKE stock is calculated by comparing the relative price of
each as of 5/29/2009 to 5/28/2004, amounts do not take into consideration reinvestments
of dividends.
SALES U.S./INTERNATIONAL BY PERCENTAGE
FY05
FY06
FY07
FY08
FY09
U.S.
46%
47%
47%
43%
42%
International
54%
53%
53%
57%
58%
TOTAL RETAIL STORES
• FY07: 254 U.S., 232 International
• FY08: 296 U.S., 260 International
• FY09: 336 U.S., 334 International
EMPLOYEES
• 30,200 employees at May 31, 2007
• 32,500 employees at May 31, 2008
• 32,800 employees at May 31, 2009
NIKE, Inc. Corporate Responsibility Report FY07-09
LABOR
None of our employees are currently represented by a union, with
the exception of about 20 employees in Mexico, the collective
bargaining agreement for which expires in 2009. Also, in some
countries outside of the United States, local laws require
representation for employees by works councils (such as in
the European Union, in which they are entitled to information
and consultation on certain company decisions) or other
representation by a organizations similar to unions, although
collective bargaining agreements are not involved.
There has never been a material interruption of operations due to
labor disagreements.
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NIKE, Inc. Revenue Distribution
Fiscal Year 2005 vs. 2009
13% Other
Businesses*
13% Other
Businesses*
37%
U.S.
34%
U.S.
2005
2009
50%
International
53%
International
*The segment labeled “Other Businesses” for Fiscal 2005 represents revenues from Cole Haan, Converse Inc., Exeter Brands Group LLC,
Hurley International LLC., Baur Hockey Inc., and NIKE Golf. Fiscal 2009 includes revenues for Cole Haan, Converse Inc., Hurley
International LLC., NIKE Golf and Umbro Ltd. Bauer Hockey Inc., and Exeter Brands Group LLC. are not included in Fiscal 2009 as Bauer
Hockey and the Starter Brand were sold in Fiscal 2008.
LOCATIONS
Hilversum,
The Netherlands
Beaverton, OR
NIKE, Inc.
World Headquarters
(WHQ)
NIKE, Inc.
European
Headquarters
(EHQ)
International branch offices and subsidiaries of NIKE, Inc. are located in Argentina, Australia, Austria, Belgium, Bermuda, Brazil, Canada, Chile,
Croatia, Cyprus, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Indonesia, India, Ireland, Israel, Italy,
Japan, Korea, Lebanon, Macau, Malaysia, Mexico, New Zealand, The Netherlands, Norway, the People’s Republic of China, the Philippines, Poland,
Portugal, Russia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Arab
Emirates, the United Kingdom, Uruguay and Vietnam.
NIKE, Inc. Corporate Responsibility Report FY07-09
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PROPERTIES
NIKE, Inc. World Headquarters (WHQ) encompasses 17 buildings
on 193 acres, totaling 1.9 million square feet of interior space
in Beaverton, Oregon. We also lease more than 750,000 square
feet of space in the surrounding metropolitan area.
NIKE, Inc. European Headquarters (EHQ) is located in leased
office space of nearly 500,000 square feet in Hilversum,
The Netherlands.
DISTRIBUTION
• There are three significant distribution and customer
service facilities for Nike-branded products: two in
Memphis, Tennessee and one in Wilsonville, Oregon.
• Cole Haan also operates a distribution facility in
Greenland, New Hampshire.
• Smaller distribution facilities for other brands and
subsidiaries are located in various parts of the
United States.
• We also own or lease distribution and customer
service facilities in many parts of the world, the most
significant of which are the distribution facilities
located in Tomisatomachi, Japan, and in
Laakdal, Belgium.
MANUFACTURING
• Nike Air-Sole cushioning materials and components
are manufactured at Nike IHM, Inc. manufacturing
facilities located in Beaverton, Oregon, and St.
Charles, Missouri, and Nike (Suzhou) Sports Company,
Ltd., facilities in the People’s Republic of China.
NIKE-BRANDED FOOTWEAR
FY07: China (35 percent), Vietnam (31 percent), Indonesia (21
percent) and Thailand (12 percent).
There are also manufacturing agreements with independent
factories in Argentina, Brazil, India, Italy and South Africa to
manufacture footwear for sale primarily within those countries.
Largest single footwear factory accounted for approximately 6
percent of total fiscal 2007 footwear production.
NIKE, Inc. Corporate Responsibility Report FY07-09
FY08: China (36 percent), Vietnam (33 percent), Indonesia (21
percent) and Thailand (9 percent)
There are also manufacturing agreements with independent
factories in Argentina, Brazil, India, Italy and South Africa to
manufacture footwear for sale primarily within those countries.
Our largest single footwear factory accounted for approximately
6 percent of total fiscal 2008 footwear production.
FY09: China (36 percent), Vietnam (36 percent), Indonesia (22
percent) and Thailand (6 percent)
There are also manufacturing agreements with independent
factories in Argentina, Brazil, India and Mexico to manufacture
footwear for sale primarily within those countries. Our largest
single footwear factory accounted for approximately 5 percent
of total fiscal 2009 footwear production.
NIKE-BRANDED APPAREL
FY07: 36 countries
Most production occurred in China, Thailand, Indonesia,
Malaysia, Turkey, Honduras, Vietnam, Sri Lanka, Mexico, Taiwan,
Cambodia, India and Bangladesh. The largest single apparel
factory accounted for approximately 6 percent of total fiscal
2007 apparel production.
FY08: 34 countries
Most production occurred in China, Thailand, Indonesia,
Malaysia, Vietnam, Turkey, Sri Lanka, Honduras, Mexico, Taiwan,
Israel, Cambodia, India and Bangladesh. The largest single
apparel factory accounted for approximately 8 percent of total
fiscal 2008 apparel production.
FY09: 34 countries
Most production occurred in China, Thailand, Indonesia,
Malaysia, Vietnam, Turkey, Sri Lanka, Cambodia, Taiwan, El
Salvador, Mexico, India and Israel. The largest single apparel
factory accounted for approximately 5 percent of total fiscal
2009 apparel production.
OTHER
• Approximately six production offices outside the
United States
• More than 100 sales offices and
showrooms worldwide
• More than 70 administrative offices worldwide
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