Welcome To Academy Sports Outdoors Vendor Seminar Yusen

Welcome To Academy Sports + Outdoors Vendor Seminar Yusen Logistics Session June 10 & 11, 2008

AGENDA Ø Opening Remark Ø Introduction by Academy Sports+Outdoors Ø Introduction by Yusen Logistics Ø Yusen Logistics Role and Responsibilities Ø Standard Operation Procedures Ø e. Booking System Demo Ø Q&A

Introduction By Academy Sports+Outdoors

Introduction By Yusen Logistics (OCM) Origin Cargo order & vendor Management

Introduction of NYK Group v Largest Japanese Shipping Company with 120 years history v Annual Turnover about USD 18. 3 billion for year ended March 31, 2007 v Ranked 391 th of World’s Largest Corporations by magazine’s 2007 Fortune Global 500 in terms of operating incomes for 2006 v Stock listed in stock exchanges in Tokyo, Osaka, Nagoya and Frankfurt.

Overview of NYK Group v Business Breakdown: v v v v Bulk and specialized Carrier Container Logistics Others Terminal Harbour Transportation Tanker Cruise Real Estate 29% 25% 21% 12% 6% 5% 2% 1% v The NYK Group operates approximately 742 (as of March 31, 2007) major ocean vessels as well as planes, trains and trucking fleets. v 262 office locations, in 32 countries, warehouses in every continent and harbour operations in Asia, North America and Europe

Yusen Logistics - Hong Kong 1969 -- Orient Consolidation Service (OCS) Inc. was founded 1973 -- OCS (HK) Ltd was established as Asia Headquarters of OCS Inc. 1980 -- Taiping Cargo Service Limited was established 1998 -- Name changed to New Wave Logistics (H. K. ) Ltd. 2004 -- Established NYK Logistics (Hong Kong) Ltd. by joining 2 well established logistics companies: v Orient Consolidation Service (HK) Ltd. INSD v New Wave Logistics (HK) Ltd. DSD 2011 -- Name change to Yusen Logistics (Hong Kong) Ltd.

Origin Cargo order & vendor Management v Global Company covering 161 cities and ports in 66 countries v OCM was formerly named as INSD; OCM Hong Kong was established in 2011 v OCM Hong Kong being the OCM Global Headquarters v 3 Operation Hubs – HK, London, Secaucus v Sales & Customer Service Offices in Secaucus, NJ; London, UK

OCM (Shenzhen) Establishment： APR 2005 Fund： US$ 1. 4 Million, NYK 100% General Manager ：　Jackie Lin　 Staff： 80 (July 01, 2007) Address: 25/F, Excellence Times Square, 4068 Yitian Road, Futian District, Shenzhen, PRC Office Tel No: (86) 755 -2583 -8406 Office Fax No: (86) 755 -2583 -8411 / 8413 Warehouse : Futian Warehouse, Yantian Warehouse Service Summary 1. Using H/B of NYK Logistics 2. Warehouse Service 3. Transportation for Cross Border & Domestic, Haulage and Truck 4. Import and Export Logistics Consulting Service 5. Buyer’s Consolidation service

OCM (Shenzhen) NYK LOGISTICS (SHEN ZHEN) LTD Service Volume (per month) Remark Haulage 3000 TEU Ex Pearl Delta River to Yantian/Shekou/Chiwan CY Truck 500 Truck Inland Truckage X-b Haulage 1000 TEU Ex Pearl Delta River to HKG CY X-b Truck 500 Truck X-b Truckage to HKG 1. NYK Logistics purchased 10 haulages in 2006. We have established cargo transportation and control centre in order to supply professional logistics solution. 2．NYK Logistics cooperates with over 15 subcontractors closely. We have owned powerful control network with 1000 haulages and 500 trucks. Spread up more services scope to serve our customers better. 3．NYK Logistics has established powerful delivery network in order to serve our customer timely effectively with high quality.

OCM HK – Dedicated Service Team for Academy Sports+Outdoors Hideo Saito Director Irene Tung General Manager Chris Harding Account Director Wei Ting Manager Perick Chan Assistant Manager Joanne Lun Senior Coordinator Ling Wong Senior Coordinator Jacky Chan Clerk Jenny Cheng Clerk Ø Local Contacts for Hong Kong, Shenzhen (I. e. Yantian, Shekou), Guangdong Province Bookings Ø Operational Hub and Communication Window with Academy for Asia Origins Ø Global Service Quality Control Center for all Academy Origins

Contact List for Yusen Logistics in South China Ports Internet Address : Responsibility 852 -31290303 irene. tung@hk. yusen-logistics. com Enquiry other than daily Ms. Wei Ting 852 -31290351 wei. ting@hk. yusen-logistics. com Enquiry other than daily Mr. Perick Chan 852 -31290301 perick. chan@hk. yusen-logistics. com Daily Operation overview Ms. Joanne Lun 852 -31290012 joanne. lun@hk. yusen-logistics. com Booking process Ms. Ling Wong 852 -31290343 ling. wong@hk. yusen-logistics. com Booking process Mr. Jacky Chan 852 -31290379 jacky. chan@hk. yusen-logistics. com Documentation Ms. Jenny Cheng 852 -31290329 jenny. cheng@hk. yusen-logistics. com Documentation Mr. Rex Shen 86 -755 -82864744 86 -755 -25838413 rex. shen@hk. yusen-logistics. com Daily Operation overview Xiamen Ms. Lydia Chen 86 -592 -2395193 86 -592 -2395093 lydia_chen@cn. nyklogistics. com Daily Operation overview Fuzhou Ms. Tina Guo 86 -591 -87854485 86 -591 -87854489 tina_guo@cn. nyklogistics. com Daily Operation overview Hong Kong Shen. Zhen Guangzhou Zhuhai Jiangmen Name : Phone : Ms. Irene Tung Fax : 852 -3101 9098

DISTRIBUTION CENTRE OF ACADEMY SPORTS+OUTDOORS JEFFERSONVILLE, GA KATY, TX CARROLLTON, TX

Logistics Flow of Academy Sports+Outdoors Vendors/ Factories NL/INSD consolidation CY CFS DC Stores

Yusen Logistics Role and Responsibilities

OCM Role and Responsibilities We work according to the instructions of Academy. We book with Academy’s nominated carrier. We are Neutral. We measure performance of all parties in the Academy's supply chain, including ourselves.

OCM Role and Responsibilities Supervision of vendor on time & accurate delivery. Coordination of FCL booking. Coordination of LCL cargo. Handling of all necessary documentation received from vendors. Preparation of documentation for Sea waybill / Bill of Lading. Collection of all local charges. Issuance of a Forwarder’s Cargo Receipt (FCR), to the vendors, after ALL documents and local charges have been received.

Standard Operation Procedure for Vendors

Origin Consolidation Operations Academy Issue PO to the Vendors Yusen Logistics/INSD Acknowledgement Receive PO from Academy Vendors Receive PO Manufacturing Cargo Status YL checks PO status with Vendors (14 days prior to Earliest Vessel Ship Date) Vendor advise PO status to YL Booking Info YL checks booking against PO Place Booking to YL Receiving, Container and Vessel Info YL places booking with Carrier and YL stuff the container LCL delivered to NL & FCL delivered to Carriers Cargo Shipped Loading Info YL prepares and issues FCR to the vendor YL prepares container manifest and provides document images to CHB for Customs Clearance. Prepare commercial documents and send to YL Vendors receive the FCR

VENDOR Yusen LOGISTICS ORIGIN OFFICE Submit bookings to YL via e. Booking system at least 14 days prior to Early Ship Date Shipping Order Information downloaded to Yusen Logistics System Booking Confirmation ACADEMY YL System will verify Shipping Order Info against Academy PO file PO Verification Shipping Order Booking Procedure and Control N Discrepancy ? Advise Vendor to correct the discrepancy and submit booking again YL S/O# for CFS delivery and Carrier S/O # for CY delivery Obtain Shipment Approval from Academy Y N Approved Y Booking status available in YL ebooking system

Definition of Academy Shipping Window • ESD (Early ship date) =Academy Ship date in the PO • LSD (Last ship date) =Academy Cancel date in PO 5 - 7 DAYS Early Ship Date Last Ship Date (Ship Date in PO) (Cancel Date in PO)

On-Time Definition CY — Container onboard the vessel within the CY Flow ship window. 5 -7 Days 14 Days 2 Days 3 Days 2 Days Max. 5 Days Max. 3 Days Cargo Production Re g i o n a l D C ( RD C ) A r r i v a l P o r t Of D i s c h a r g e D o c um e nt D i s p a t c h b y N Y K L FC R I s s u e d (Cancel date) V e nd o r D o c. S ub m i s s i o n L a s t S hi p D a t e Vessel Departure (On Board of the vessel) C Y C ut -o f f C o nt a i ne r D e l i v e r y C Y ) C a r r i e r S /I C ut -o f f N Y K L C L P C ut -o f f = N Y K L S /I C ut -o f f (Ship Date) S ub m i t C L P t o N Y K L E a r l y S hi p D a t e Bo o k w i t h N Y K L S t a r t C a r g o P r o d uc t i o n

On-Time Definition CFS — container is onboard the vessel within the CFS Flow ship window. 5 – 7 Days 14 Days 2 Days 3 Days 2 Days Max. 5 Days Max. 3 Days Cargo Production Re g i o n a l D C ( RD C ) A r r i v a l P o r t Of D i s c h a r g e D o c um e nt D i s p a t c h b y N Y K L FC R I s s u e d V e nd o r D o c. S ub m i s s i o n Last Ship Date (Cancel Date) Vessel Departure (On Board of the vessel) C Y C ut -o f f C o n t a i n e r D e l i v e r y (C Y ) C a r r i e r S /I C ut -o f f C o nt a i ne r s t uf f i ng = N Y K L s ub m i t S /I t o c a r r i e r (Ship Date) Cargo Delivery from Vendors (on/before NYKL S/I Cut-off=CFS cut-off) E a r l y S hi p D a t e Cargo Delivery from Vendors Bo o k w i t h N Y K L S t a r t C a r g o P r o d uc t i o n

Booking Requirements Booking Timeline: Vendors must submit bookings via YL e. Booking system at least 14 days in advance of the Early Ship Date on the Academy’s Purchase Order (Ship Date). On time booking Shipping Window LBD ESD JUN 30 JUN 16 Remark : LBD = Latest Booking Date ESD = Early Ship Date LSD = Last Ship Date LSD JUL 07 14 days Purpose: ensure adequate space and equipment from carrier

On-time Shipment Full Container Loaded Cargoes Container onboard the vessel within shipping window.

On-time Shipment Less-than-container Loaded Cargoes Container onboard the vessel within shipping window.

Booking Information required for bookings: Shipper Name / Address / Contact person / phone, email address/ fax number Consignee Name / Address Notify Party Port of Loading Destination Academy PO Number & Academy Sku# Shipping Marks

Booking Information Description of Merchandise Number of Cartons / Piece Count Quantities per Sku# Weight (kgs) and Volume (cbm) per Sku# Container size and number of container requested (Factory load cargo) Estimated Cargo Ready Date (CFS): cargo available to be delivered to YL warehouse or dedicated NVOCC facility Estimated Cargo Ready date (CY) : laden container delivered to carrier CY Definition of Cargo Ready Date 1. 2. 3. Production completed Inspection passed CY : Container stuffing completed Laden container delivered to carrier CY CFS: Cargo can be delivered to NL warehouse or dedicated NVOCC facility

PO Verification YL needs to make sure all bookings comply with Academy PO info : PO number Academy Sku # Onboard a vessel within Shipment Window Quantities (except for Apparel which has +/-5% tolerance) FOB point Can meet minimum load requirement (CY) All discrepancies must be approved by Academy

Sample of Shipping Order M A S E L P

Sample of Carrier Booking Confirmation E L P M A S Carrier booking number YL CLP cut-off time

Factory Load Requirements Academy Container Load Standard: 20’ FT Min 21 cbm Max 13, 000 kgs 40’ Dry Min 52 cbm Max 20, 400 kgs 40‘ High Cube Min 59 cbm Max 20, 400 kgs Min 69 cbm Max 20, 400 kgs 45‘ Dry Any loading measurement not meeting the container utilization requirements or any possibility of overweight must be report to Academy before empty container collection

Factory Load Requirements Load Merchandise by PO number and by Sku number. A purchase order should never be split into two containers unless the volume exceeds one container. Must submit Container Loading Plan (CLP) to NL on/before YL CLP cut-off time after cargo stuffing with complete and accurate information.

Container Loading Plan (CLP) Requirements for Factory Load CLP Information: Container number Carrier Booking Number Seal Number PO & Academy Sku # Size of Container Precise cargo description: generic description such as “General Cargo”, “Freight All Kind” is not allowed Port of Loading Final Destination Container Arrival Date at Terminal Vessel Name/Voyage Number Ocean Carrier Carton & Piece Quantity (lowest visible packing) Weight & CBM

Container Loading Plan Sample E L P M A S Submit to YL on/before YL CLP cut-off time

CFS Cargo Delivery Requirement Vendors need to present YL Shipping Order for cargo delivery Cargo must be delivered to YL warehouse by the CFS cut-off stated on the booking confirmation sheet Cargo must be sorted by P. O. and by Academy Sku in advance Cargo must be delivered to warehouse in sound condition

Documentation Requirements Vendor should submit YL Complete and Accurate documents within 72 hrs or 3 business days after vessel sailing, 1 original copy The required basic documents : Ø Ø Ø Ø Signed Commercial Invoice Packing List Academy Sports & Outdoors Document Checklist Manufacturer’s Certificate Final Quality Audit Report/ Inspection Certificate of Origin (if applicable) Container Manifest

Documentation Requirements Visa Cargo Ø Ø Textile Export License (w/ visa stamp or visaed document) Textile Country Declaration (Single or multiple) Quota Charge Statement Other applicable requirements (if any) Footwear Ø Footwear detail sheet IFI

Documentation Requirements Sunglasses Ø Impact Resistance Certificate ( FDA Listing #, Medical Device #) Rawhide Dog Chews Ø Veterinary Certificate Ø Production Process List Ø Certificate of Irradiation Ammunition Ø Shipping specification Ø Multimodal Dangerous Good Declaration

Documentation Requirements Forwarder Cargo Receipt (FCR) will be released to vendor upon YL receiving all required documents and local charges from vendors. If vendor fails to submit documents to YL within 72 hours or 3 business days after vessel sailing, YL will issue Document Delay Notice to vendor.

Vendors Responsibilities Timely delivery of products and documentation Accuracy of information Condition of cartons Ø Proper packaging to avoid damages

Critical Timeline

Booking Vendor must submit booking to NL at least 14 Days Before Early Ship Date To get adequate Equipment and Space from shipping carrier

YL CLP Cutoff Shipper must submit Complete & Accurate Container Loading Plan to NL before YL CLP Cutoff YL has to submit information to Carrier before Carrier SI Cutoff. Otherwise, the container may be detained in loading port

Carrier SI Cutoff YL must submit Shipping Instruction (SI) to Carrier before Carrier SI Cutoff Carrier has to submit Advance Manifest Information to US Customs 24 hours prior to loading onto the Vessel.

Vessel Departure Complete and accurate information Containers can be loaded on vessel as booked

Commercial Document Submission Shipper must submit Complete & Accurate Sets of Commercial Documents to NL within 3 business days after Vessel Departure YL has to prepare and send all the necessary documents to Customs Broker for Customs Clearance. Otherwise, the container may not be delivered on time.

Forwarders’ Cargo Receipt (FCR)

Forwarders’ Cargo Receipt (FCR) Issuance FCR draft will be available in the e. Booking for review or checking once full set of commercial documents with cargo is received whichever later. Forwarders’ Cargo Receipt (FCR) will be released to vendor upon receiving confirmed draft FCR copy, required sets of document and all local charges from vendor. FCR will be issued per booking, per vessel, per Academy’s destination and per origin. Commercial Document should be prepared per Sea Way Bill.

Upper part of FCR REF: 518486 DESCRIPTION K/D RECTANGLE SHAPE STORAGE BOX W/LID CPX NO. : 31693 C/O NYK C/NO. : OF M A S E L P NOTIFY PARTY: NYK Logisitics France Parc de Chesnes - Quatre routes CY-CY 7, rue des quatre routes-BP 35 38291 St Quentin Fallavier Cedex PO NO: 31693 France ITEM NO. 518486(HL 6208 BN) PRODUCT DESCRIPTIONS: K/D RECTANGLE SHAPE STORAGE BOX W/LID/PIECE 125 CARTONS

Lower part of FCR HONG KONG SA E L MP June 01, 2008

Vendor Performance & Compliance

Key Performance Indicators for Vendors 1. Booking Timeliness 2. Booking and Container Loading Plan Accuracy 3. Container Loading Plan Submission Timeliness 4. Commercial Documents Submission Timeliness Vendor Scorecard will be prepared for Academy’s Reference

VENDOR SCORECARD ON TIME % VENDOR AVERAGE LATE %

Yusen Logistics e. Booking System

Yusen Logistics e-Booking http: //griffin. hk. yusen-logistics. com/ebooking/

e. Booking Benefits for Vendors Avoid delay caused by inaccessible fax transmission Higher visibility in booking status, e. g. booking approval status. Minimize typo errors as there is alert in ebooking system Reduce Paper Usage Avoid back and forth clarification for unclear or missing information Minimize redundant input e. g. Cargo description can be downloaded from PO transmission Enhanced Reporting Capabilities

How to Apply for Login Go to NYK Logistics e-Booking web-site http: //griffin. hk. yusen-logistics. com/ebooking/ Download Registration Form and save to your own PC. Fill in the form and email to : Perick_chan@hk. yusen-logistics. com Login ID and password will be informed within 1 working day by email.

e-Booking Registration Form 1 administrative user and up to 3 operation user logins can be requested per vendor / factory. Administrative user has the right to maintain user profile (name, password etc) of all login ID and define template.

First time Login: Vendors are required to double check whether the information of the Users is correct.

e-Booking Functions On-line Booking § by Academy PO No. Print out Shipping Order § For you to keep copy § For cargo delivery to CFS warehouse Load Plan Submission § For CY container only § View Academy’s min loading requirement online. § To provide Container and Loading information for S/I submission. § View booking status, FCR draft content, B/L# and sailing information online Real-time Tracking Template Define § Reduce time to enter Ship Marks & Merchandise Description Useful Information § e. Booking manual § Vendor Guideline § Yantian warehouse map and customs declaration requirement

On-line Booking More flexible to submit booking 7 days a week. Improve accuracy by realtime validation on PO and Sku # Allow booking to be made on Academy’s PO No. Save time to enter item details. Reduce processing time.

Shipping Order Let you to keep your own copy. Shows Yuse Logistics Shipping Order No. if booking is confirmed. The printed copy of Shipping Order must carry “YL Shipping Order No. ” for cargo delivery to CFS warehouse. PDF format

Submit Load Plan View Academy min loading requirements. Container No. check digit validation. Eliminate redundant typing and speed up SI submission.

Real Time Tracking Booking status. Shipment & Sailing info View FCR (draft) content

Support On-line Help screen for all functions. Contact NYK Logistics local office

e. Booking Demo

Question & Answer

Frequently Asked Questions 1. Which login (administrative user login / operation login) should vendor used to create the e. Bookings ? 2. Depends. The administrative user can see all the bookings created and a operation user can only see the bookings created by herself. 2. How long will NYKL confirm the e. Bookings submitted ? CFS： 1 working day if no discrepancy and no Academy’s approval is required. CY : Depends on when the nominated carrier by Academy release bookings to NYKL (YL will closely follow up with carriers and report carriers’ performance to Academy constantly. )

Frequently Asked Questions 3. Is it allowed to submit 1 e. Booking with many POs ? Yes, if the final destination & estimate cargo delivery for the POs are the same, they can be submitted under 1 e. Booking. Note : No. of FCR = No. of commercial invoice = No. of e. Booking If vendor request more FCRs to be issued per PO basis, vendor should request by email on or before submission of CLP. 4. Is it possible to release FCR in Hong Kong for cargo out of Xiamen and how much does it cost ? Yes, vendor only need to declare the FCR release location at the time of booking, and pay “Offshore FCR release fee” USD 30 per FCR for such arrangement.

Frequently Asked Questions 5. Is it possible to print the Original FCR from the e. Booking system ? No. Only non-negotiable copy of FCR can be printed for supplier checking. Original FCR will be released once draft FCR is confirmed, documents are submitted and local charges are paid. 6. Will there be any Letter of Credit discrepancy during this transition period ? Academy will accept the Letter of Credit discrepancy caused by the change of Logistics company, as long as the Forwarder’s Cargo Receipt is issued by NYK Logistics (Hong Kong) Limited.

Academy / NYK Logistics Vendors Seminar We hope this meeting has been informative & beneficial Thank you all for attending. This presentation materials can be available via the following FTP site for download : ftp: //academy: spe 3 e 2 hu@ftp. hk. nyklogistics. com