Adidas 2000 Annual Report Download

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ANNUAL REPORT 2000

Table of contents

  • Page 1
    ANNUAL REPORT 2000

  • Page 2
    New Management: Our Mission and Goals pages 2, 8 Share Price Development: Improved Throughout 2000 page 4 Platform to Grow: New Strategies for the Brands page 12 Net Sales Development: Record Level g 5.8 billion page 28 2001 Outlook: Net Earnings to Increase 15% page 50 2000: KEY POINTS IN BRIEF

  • Page 3
    Net Sales (euros in millions) 2000 1999 1998 1997 1996 0 1,000 2,000 3,000 4,000 5,000 6,000 Income (euros in millions) 2000 1999 1998* 1997 1996 0 100 200 300 400 500 600 Income before taxes and minority interests Net income * Before special effect Earnings Per Share (in euros) 2000 1999 1998...

  • Page 4
    ... expenses as a percentage of net sales Effective tax rate Net income as a percentage of net sales Equity ratio Per Share of Common Stock (euros) Earnings per share Dividend per ordinary share Share price at year-end * Dividend proposal - subject to Annual General Meeting approval 2000 5,835 347 182...

  • Page 5
    ... adidas-Salomon ANNUAL REPORT 2000 Consolidated Accounts (IAS) Glossary Financial Highlights: Five Year Overview Segmental Information: Three Year Overview Financial Calendar 61 100 104 106 108 2 4 6 12 28 52 58 Mission Statement Shareholder Information Management Speaks Out Strategy Management...

  • Page 6
    ...and environmentally responsible, creative and financially rewarding for our employees and shareholders. Our strategy is simple: continuously strengthen our brands and products to improve our competitive position and financial performance. adidas-Salomon has the highest market share in Europe and we...

  • Page 7
    Mission Statement 3 adidas-Salomon ANNUAL REPORT 2000

  • Page 8
    ...-Salomon share price were driven by company, industry and market factors. At adidas-Salomon, Management changes and the c 38 million Growth and Efficiency Program were announced. Profit warnings were issued in the industry, which pushed share prices down dramatically. In addition, interest rate...

  • Page 9
    ... America and global supply chain management. In new media activities, the Investor Relations internet site www.adidas.com/investor was improved and expanded in 2000. The site now includes corporate history, investor news, current and historical share price information, quarterly earnings reports...

  • Page 10
    ... this, adidas-Salomon shares are trading at above c 75, representing a growth of more than 110%. The two years following our public launch saw us grow extremely quickly. In the process, we became the clear number two in the global sporting goods market. In 1997, we acquired the Salomon group and...

  • Page 11
    Management Speaks Out 7 adidas-Salomon ANNUAL REPORT 2000 soccer. We now have to grow from this strong base to win leadership in all important markets and categories. To do this is our challenge and to achieve it is, I believe, our destiny. As you read this annual report, you will get a good feel...

  • Page 12
    ... value for you. A Fitter, Stronger adidas-Salomon 2000 was a pivotal year for adidas-Salomon. First, we put a new Management team in place. In addition to myself, we also have a new Head of Global Marketing, a new Chief Financial Officer, a new Creative Director and a new President of adidas America...

  • Page 13
    ...European warehouse and logistics structure, to make sure our new products get to the market faster. â...¢ We accelerated our internet and e-business activities, in order to utilize this powerful marketing tool for the future. â...¢ We re-established our commitment to technology and design innovation, by...

  • Page 14
    ... few examples: â...¢ We need to turn around adidas America, to improve our position in the world's largest sporting goods market. This is our biggest challenge and the Group's key focus. â...¢ We need to improve our apparel, and that means design, production and marketing to match the changing needs and...

  • Page 15
    ... reinvigorated our team and refocused our energies. adidas-Salomon is a far better organization today in terms of design, marketing and sales than it was a year ago. That means we now have the right platform to move on to the next phase in our plans to maximize the performance and profitability of...

  • Page 16
    12 adidas-Salomon Strategy The Challenge of Market and Consumer Change The markets and industry in which we compete are transforming rapidly, paced by the evolution - or revolution - in how "sports" are defined. Team sports such as soccer and basketball will always be a fundamental part of ...

  • Page 17
    ... our total sales and profits. The majority of Group products and employees are focused on adidas. Thus its performance is critical to the organization's long-term success. Our goal is to refocus and reposition the adidas brand to fully exploit its market potential. For adidas, this means moving away...

  • Page 18
    ... 40% of our footwear sales and is one of our strongest growing apparel categories for the adidas brand. Our top shoes have repeatedly received the best product awards within the running community. This category will also serve as the base for implementation of new footwear technologies in the future...

  • Page 19
    Strategy 15 adidas-Salomon ANNUAL REPORT 2000 â...¢ Basketball is Scoring Big Improvements Over the last few years, adidas has transformed its heritage in basketball from a supplier of no-frills, highly functional products to a major brand for urban basketball players and basketball inspired youth....

  • Page 20
    ... market leader in terms of market share, top products and athletes. This is a key category for adidas and an area in which we are committed to extending our market leadership through ongoing technological innovation. A current example of this is our recently launched Precision Polo tennis shirt...

  • Page 21
    Strategy 17 adidas-Salomon ANNUAL REPORT 2000 engineered to perform

  • Page 22
    ... and accessories range will be offered to complement our strong success in footwear. Further, a targeted global advertising campaign and communications package will tell the authentic and exciting ORIGINAL story. Once Innovative, Now Classic, Always Authentic The legacy of Adi Dassler, his love of...

  • Page 23
    Strategy 19 adidas-Salomon ANNUAL REPORT 2000 Product Direction The Fall/Winter 2001 apparel offering is a collection of individual items rather than matching outfits. An overall feeling of craftsmanship will be central, with strong attention to detail, fabrics and patterns. Products will be sold...

  • Page 24
    ... our consumer base. These types of consumers extend beyond teenage groups, where the adidas brand is already well known, to the 25- to 40-year-old working professionals who also understand and love sport. This is a group that we will target directly for the first time with EQUIPMENT. In addition to...

  • Page 25
    .... These stores may or may not be within our current distribution channels. EQUIPMENT will not be an item business. All retailers will display and sell EQUIPMENT only as complete product packages. We will utilize a selective and limited sales approach to stimulate demand, which will be the basis...

  • Page 26
    ...strong involvement in image development with top film production, television and video games partners. And lastly, we seek to integrate our web sites, Salomon stations and grass roots activities in a complete package offering our customers the kind of information, experience and service they expect.

  • Page 27
    .... In addition, Mavic development teams will be moving to Salomon headquarters in France in 2001. Together, these moves will enable Mavic to benefit from all possible synergies with Salomon in terms of product design, development and marketing. Salomon and Mavic Outlook Salomon is the brand in...

  • Page 28
    ...been a key factor in improving both the brand's image and sales in the golf market. TraxionTM technology is being utilized for a wide variety of products, which fit with TaylorMade-adidas Golf's focus on authentic golfers. One example is the Tour TraxionTM, which is our best-selling golf shoe of all...

  • Page 29
    Strategy 25 adidas-Salomon ANNUAL REPORT 2000 Reaching Authentic Golfers with Grassroots Marketing Efforts and Technical Innovation TaylorMade-adidas Golf is introducing some new marketing tools to capture attention and gain sales amongst our core audience in a true one-on-one way. Investing in ...

  • Page 30
    ... marketing strategy will mean that global supply chain management is even more critical for the Group's success. At adidas-Salomon the supply chain encompasses the community of people and the associated processes that enable the Group to design, develop, manufacture, sell and deliver products...

  • Page 31
    Strategy 27 adidas-Salomon ANNUAL REPORT 2000 exchange of information and commitment to high service levels are essential for each supply chain partner. To this end, we are constantly re-evaluating our operational partnerships, including our raw material suppliers, manufacturers and logistics ...

  • Page 32
    .... Economic Climate Develops Negatively In 2000, negative development characterized many important markets. International stock exchanges had their worst year in over a decade, the US economy began to slow and retail stagnated in Germany. Latest economic data suggests that corporate profits in Europe...

  • Page 33
    .... TaylorMadeadidas Golf profited from positive overall market development, increasing sales by 14%. Salomon achieved excellent growth rates with both summer and winter products, recording a 17% increase in sales for the full year. And Mavic sales increased 22% following the successful introduction...

  • Page 34
    ... development, which also declined 9%. Salomon and TaylorMade-adidas Golf delivered strong improvements, up 82% and 46% respectively. Detailed information on sales and operational performance of the individual brands is presented in the segmental reporting. Operating expenses, which comprise selling...

  • Page 35
    Management Discussion & Analysis 31 adidas-Salomon ANNUAL REPORT 2000 Royalty and Commission Income Increases Royalty and commission income increased by 24% to c 43 million. The main driver of this development was a significant increase in sales by our licensees in Europe and Asia. Financial ...

  • Page 36
    ... higher back orders at Salomon and TaylorMadeadidas Golf as well as our pull-forward efforts to ensure on-time delivery of adidas products, mainly in Europe. Retail expansion and increased re-order business also played a role for brand adidas. Important to note, however, is that the structure of our...

  • Page 37
    ... "out-of-themoney". To limit option premium payments, adidas-Salomon has only engaged in currency options which, at the time of their purchase, were "out-of-the-money". Changeover to Euro on Track Preparations among Group companies for changing financial and accounting systems to the euro currency...

  • Page 38
    ... Net sales Gross margin Operating profit Order backlogs* * At year-end 2000 4.7bn 40.8% 391m Change year1999 over-year 4.4bn 6% 41.1% (0.3pp) 431m (9%) 1% adidas Footwear Sales by Product (in %) Others 17 Tennis 8 Running 38 Training 11 Soccer 11 Basketball 15 adidas Apparel Sales by Product...

  • Page 39
    Management Discussion & Analysis 35 adidas-Salomon ANNUAL REPORT 2000 Based on market research from Sports Tracking Europe, the adidas brand again increased its share of the total footwear market in 2000 by about 1.0 percentage points to around 27%. Apparel sales for adidas in Europe were ...

  • Page 40
    ...of the new premium-priced shoe The KOBE has helped drive backlogs for the category up 35% versus the previous year. In the second half of the year 2001, recovery is expected to begin with our most important athletic specialty retailers. This will be supported by new product initiatives, which target...

  • Page 41
    ... adidas in Latin America is Positive Initial orders and discussions with customers suggest 2001 will again produce double-digit sales growth for adidas in Latin America. The main drivers of this growth will be improved brand positioning in the major markets as well as increased own-retail programs...

  • Page 42
    38

  • Page 43
    Management Discussion & Analysis 39 adidas-Salomon ANNUAL REPORT 2000 Salomon 2000 was another very successful year for the Salomon brand. Net sales grew 19%, with consistently strong growth in all the regions. Salomon improved sales of winter sports products by 19%, proving that the product ...

  • Page 44
    40

  • Page 45
    .... In America, the largest golf market in the world, sales were up 28%. In Europe, sales increased 14% despite adverse weather conditions. Gross Margin at Record Level TaylorMade-adidas Golf's gross margin came in at 49.5%, up 1.1 percentage points from the previous year. Gross profit increased 38...

  • Page 46
    42

  • Page 47
    Management Discussion & Analysis 43 adidas-Salomon ANNUAL REPORT 2000 Mavic 2000 was a year of recovery for the bicycle and bike component industry. On the back of high-profile appearances at the Summer Olympics and the Tour de France, sales increased 25%. The gross margin improved slightly. As a...

  • Page 48
    ...our management stock option program links the compensation of key executives worldwide to the development of our share price. This actively enhances shareholder value by ensuring that management and shareholders have the same goals. Our Pension Program It is the policy of the adidas-Salomon Group to...

  • Page 49
    .... Our young managers are supported internally through management development programs. One example of this was an internal management academy piloted for adidas Germany in 2000. Our Future The success and growth of our Company has come as a direct result of the talents of the people who work for us...

  • Page 50
    ... us to communicate more effectively with both workers and management. As well as monitoring the status of factories, the key role of the SOE team is to support and train our business partners to continuously upgrade and improve working conditions. This clearly symbolizes our Company's belief that...

  • Page 51
    ... for labor, health, safety and the environment. â...¢ To continuously address questions and issues that can eliminate unsatisfactory working conditions in factories. â...¢ To serve as an information database for consumers about workplace codes, monitoring principles and participating companies. Social...

  • Page 52
    ... Management Report As a global company, adidas-Salomon is exposed to a variety of business risks. We define risks as those events internal or external, which can impact the achievement of short-term goals (e.g. earnings targets) or the implementation of long-term strategies and the financial health...

  • Page 53
    ... the Group's headquarters in Germany. To assure best response to changing market conditions, this risk is closely monitored by our Treasury Department. When a relevant risk has been identified, we address it with appropriately structured financing or derivative products. As a result, adidas-Salomon...

  • Page 54
    .... adidas Rejuvenation through Originals, Basketball and New Designs In the strategy section of this report, we present the new global marketing strategy for the adidas brand. In 2001, the new divisional structure will be in place to start delivering positive results for the Group. In the ORIGINAL...

  • Page 55
    ... adidas-Salomon is now poised for the next phase of growth. We have successfully completed the Growth and Efficiency Program, which has prepared our systems and structures for the major changes now underway within the Group. A key driver of growth for brand adidas will be the new marketing strategy...

  • Page 56
    ... The positive results of the Growth and Efficiency Program. new strategy for the adidas brand. development of business in the United States. impact of changes in the exchange rates. The external auditors attended the annual financial statements meeting of the Supervisory Board on March 2, 2000 and...

  • Page 57
    ... 53 adidas-Salomon ANNUAL REPORT 2000 adidas-Salomon AG monitoring system for early identification of risk. They concluded that the existing system was appropriate and that the management reports for adidas-Salomon AG and the Group accurately reflected future risk. The financial statements...

  • Page 58
    ... Group Deutschland GmbH, Eschborn, Germany* Fritz Kammerer** Deputy Chairman 55, German Chairman of the Central Works Council, adidas-Salomon AG Sabine Bauer** 37, German System Manager Footwear Quality, Global Operations, adidas-Salomon AG Ulrich Becker** 37, German Head of Communications, adidas...

  • Page 59
    ... the Administrative Board, Bayern LB International Fund Management Company S.A., Luxembourg* David Bromilow 58, British Executive Director, MediMedia Int'l Ltd., Hong Kong Herbert Müller** 56, German Regional Manager, IG BCE Trade Union, Region Nuremberg, Germany Deputy Chairman of the Supervisory...

  • Page 60
    ... Group, Boston, Massachusetts, USA President and Chief Executive Officer, Louis Dreyfus Communications, Paris, France Christian Tourres (until March 8, 2001) Deputy Chairman, Sales and Licensees 62, French Herbert Hainer Deputy Chairman, Chief Operating Officer (until March 8, 2001) Chairman, Chief...

  • Page 61
    Corporate Governance 57 adidas-Salomon ANNUAL REPORT 2000

  • Page 62
    ... adidas products in Australia. Markets, merchandises, sells and distributes adidas products in Spain. Markets adidas trademarks and leads global sports promotion. Conducts global communication and advertising. Safeguards intellectual property rights. Oversees pan-European logistics and supply chain...

  • Page 63
    ...-2302-8866 Internet n/a Description Sources and conducts logistics for the adidas-Salomon international range of products from third-party manufacturers with related supporting services. Markets, merchandises, sells and distributes adidas products in France. adidas Sarragan France S.a.r.l. +33...

  • Page 64
    60

  • Page 65
    Consolidated Accounts (IAS) 61 adidas-Salomon ANNUAL REPORT 2000 Consolidated Financial Statements Notes to Consolidated Financial Statements Auditors' Report Attachments I and II to the Notes 62 66 93 94 CONSOLIDATED ACCOUNTS (IAS)

  • Page 66
    ...) (24) (11) Short-term borrowings Accounts payable Income taxes Accrued liabilities and provisions Other current liabilities Total current liabilities Long-term borrowings Pensions and similar obligations Deferred tax liabilities Other non current liabilities Total non current liabilities Minority...

  • Page 67
    Consolidated Financial Statements 63 adidas-Salomon ANNUAL REPORT 2000 Consolidated Income Statements (IAS) (euros in thousands) (Note) Net sales Cost of sales Gross profit Selling, general and administrative expenses Depreciation and amortization (excl. goodwill) Operating profit Goodwill ...

  • Page 68
    ...: Increase in long-term borrowings, net Dividends of adidas-Salomon AG Dividends to minority shareholders Capital contributions by minority shareholders Increase/(decrease) in short-term borrowings, net Net cash provided by/(used in) financing activities Effect of exchange rates on cash Net increase...

  • Page 69
    ... Financial Statements 65 adidas-Salomon ANNUAL REPORT 2000 Consolidated Statements of Changes in Equity (IAS) (euros in thousands) Share capital Balance as at December 31, 1998 Net income Dividend payment Currency translation Cumulative effect of the adoption of IAS 19 (revised 1998) Share...

  • Page 70
    ...Notes to Consolidated Financial Statements (IAS) adidas-Salomon AG, a listed German stock corporation, and its subsidiaries design, develop, produce and market a broad range of athletic and active lifestyle products under the following brand names: adidas branded products include footwear, apparel...

  • Page 71
    ... to Consolidated Financial Statements 67 adidas-Salomon ANNUAL REPORT 2000 has only engaged in currency options which, at the time of their purchase, were "out-of-the-money". Management has decided not to pursue hedge accounting in its use of currency options, but to assess their fair value and...

  • Page 72
    ...: 11 subsidiaries), since they have no or little active business and are insignificant to the financial position, results of operations and cash flows. The shares in these companies are accounted for at the lower of cost or net realizable value. A schedule of the shareholdings of adidas-Salomon AG...

  • Page 73
    Notes to Consolidated Financial Statements 69 adidas-Salomon ANNUAL REPORT 2000 Cash and Cash Equivalents Cash and cash equivalents represent cash and short-term, highly liquid investments with maturities of three months and less. Receivables Receivables are stated at nominal amounts less ...

  • Page 74
    ...defined benefit plans is determined using the projected unit credit method in accordance with IAS 19 (revised 1998). Recognition of Revenues Revenues are recognized when title passes based on the terms of the sale. Sales are recorded net of returns, discounts, allowances and sales taxes. Advertising...

  • Page 75
    ... new office buildings - currently under construction - of adidas America in Portland, was incorporated on September 23, 1999. Effective March 9, 2000 adidas-Salomon assumed full ownership of its former joint venture company adidas Portugal Lda., Lisbon (Portugal), by acquiring the remaining share of...

  • Page 76
    ... mainly to promotion agreements. Investment property held for sale relates to parts of the land of the new international headquarters "World of Sports" which are owned by the GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG. It is reclassified from property, plant and equipment, as it is...

  • Page 77
    Notes to Consolidated Financial Statements 73 adidas-Salomon ANNUAL REPORT 2000 8. Property, Plant and Equipment Property, plant and equipment consist of the following: (euros in thousands) Goodwill amortization expense is c 40 million and c 39 million for the years ended December 31, 2000 and ...

  • Page 78
    ... and Credit Lines Short-term borrowings consist of bank borrowings, discounted trade bills and Commercial Papers. Long-term borrowings consist of bank borrowings and Private Placements. Commercial Papers were issued under a c 750 million German Multi-Currency Commercial Paper Program and a c 300...

  • Page 79
    Notes to Consolidated Financial Statements 75 adidas-Salomon ANNUAL REPORT 2000 Short-term borrowings which are backed by committed mediumterm credit lines are classified as long-term borrowings. The committed medium-term lines contain a negative-pledge clause and a minimum-equity covenant. As at...

  • Page 80
    ... taxes Other Accrued liabilities and provisions Provisions for marketing mainly consist of provisions for distribution, such as discounts, rebates and sales commissions, and promotion. Restructuring provisions relate to restructuring plans in connection with the acquisition of the Salomon group...

  • Page 81
    ... and economic conditions in each respective country. The provision for pensions and similar obligations consists of the following: (euros in thousands) Defined Benefit Plans The retirement plans of adidas-Salomon AG cover substantially all employees. They are financed internally through provisions...

  • Page 82
    ...Dec. 31 1999 6.0 1.7 - 3.0 1.7 - 2.0 Discount rate Salary increases Pension increases Current service cost Interest cost Past service cost Release of provision Pension expense Actuarial assumptions for employee turnover and mortality are based on empirical data, the latter on the 1998 version of...

  • Page 83
    Notes to Consolidated Financial Statements 79 adidas-Salomon ANNUAL REPORT 2000 16. Other Non Current Liabilities Other non current liabilities include mainly obligations under finance leases (see also note 19). Liabilities falling due after more than five years total c 5 million and c 5 million ...

  • Page 84
    ... conditionally by up to c 3,500,000 through the issue of not more than 1,367,187 no-par-value shares (contingent capital) for the granting of stock options to members of the Executive Board of adidasSalomon AG as well as to Managing Directors/Senior Vice Presidents of its affiliated companies...

  • Page 85
    Notes to Consolidated Financial Statements 81 adidas-Salomon ANNUAL REPORT 2000 19. Leasing and Service Arrangements Operating Leases The Company leases offices, warehouses and equipment under leases expiring between one and eight years. Rent expenses aggregated c 99 million and c 77 million for ...

  • Page 86
    .... Management of Foreign Exchange Risk The Company is subject to currency exposure, primarily due to an imbalance of its global cash flows caused by the high share of product sourcing from suppliers in the Far East, which invoice in US dollars, while sales other than in US dollars are invoiced mainly...

  • Page 87
    Notes to Consolidated Financial Statements 83 adidas-Salomon ANNUAL REPORT 2000 Management of Interest Rate Risks The Company is taking advantage of lower short-term interest rates, compared to the available longer-term rates of most leading currencies, but it has limited its exposure with regard...

  • Page 88
    ... spending such as promotion contracts, advertising, retail support, events and other communication activities, however it does not include marketing overhead expenses. For the year 2000, Marketing Working Budget accounted for approximately 38% (1999: 38%) of the total operating expenses. Personnel...

  • Page 89
    Notes to Consolidated Financial Statements 85 adidas-Salomon ANNUAL REPORT 2000 24. Income Taxes In general, adidas-Salomon AG and its German subsidiaries are subject to corporate tax and trade tax. For undistributed earnings, a corporate tax rate of 40% (1999: 40%) plus a surcharge of 5.5% (1999...

  • Page 90
    ... assets of companies which are operating in the start-up phase or certain emerging markets, since the realization of the related tax benefits is not probable. Further, adidas Salomon North America Inc. has tax loss carryforwards, which can in part only be utilized in limited annual amounts through...

  • Page 91
    ...). 26. Segmental Information The Company operates predominately in one industry segment, the design, wholesale and marketing of athletic and lifestyle products. The Company is currently managed by brands and on the basis of a regional structure. Certain functions of the Company are centralized and...

  • Page 92
    ...the Company's segments in accordance with the management approach is presented below: Segmental Information by Brand (euros in millions) adidas 2000 Net sales third parties Gross profit in % of net sales Operating profit Assets Liabilities Capital expenditure Amortization and depreciation excluding...

  • Page 93
    Notes to Consolidated Financial Statements 89 adidas-Salomon ANNUAL REPORT 2000 Segmental Information by Region (euros in millions) Europe 2000 Total net sales Inter-segment sales Net sales third parties Gross profit in % of net sales Operating profit Assets Liabilities Capital expenditure ...

  • Page 94
    ...of adidas-Salomon has changed, reflecting the further integration and reorganization of certain central functions. In addition, the management responsibility for adidas Golf products was transferred to TaylorMade. Comparative information has been restated in order to improve comparability. Net sales...

  • Page 95
    Notes to Consolidated Financial Statements 91 adidas-Salomon ANNUAL REPORT 2000 Litigation The Company is currently engaged in various lawsuits resulting from the normal course of business, mainly in connection with license and distribution agreements. The risks regarding these lawsuits were ...

  • Page 96
    ... granted with a latest exercise date of December 31, 2002. Taylor Made Golf Co., Inc. had issued 371,284 rights by December 31, 2000. 30. Other Information Employees The average numbers of employees are as follows: 2000 Sales companies Sourcing/Production Global marketing/Research and development...

  • Page 97
    Auditors' Report 93 adidas-Salomon ANNUAL REPORT 2000 Auditors' Report To the Executive Board and Supervisory Board adidas-Salomon AG Herzogenaurach, Germany We have audited the accompanying consolidated balance sheet of adidas-Salomon AG and subsidiaries as at December 31, 2000 and the related ...

  • Page 98
    ... Disposals December 31, 1999 Currency effect Additions Changes in companies consolidated Transfers Disposals December 31, 2000 Accumulated depreciation/amortization December 31, 1998 Currency effect Additions Changes in companies consolidated Transfers Disposals December 31, 1999 Currency effect...

  • Page 99
    ... Notes 95 adidas-Salomon ANNUAL REPORT 2000 Land, land rights and buildings Technical equipment and machinery Other equipment, furniture and fittings Advance payments/ construction in progress Total tangible assets Shares in affiliated companies Participations Other financial assets Total...

  • Page 100
    ... S.A. LXF S.A. (former Le Coq Sportif International S.A.) 8) 10) adidas International B.V. adidas International Trading B.V. adidas-Salomon International Finance B.V. 8) 10) adidas Benelux B.V. adidas Belgium N.V. BIG L.A. N.V. 9) adidas (UK) Ltd. 1) adidas (ILKLEY) Ltd. 1) 10) Larasport (U.K.) Ltd...

  • Page 101
    ...adidas-Salomon ANNUAL REPORT 2000 As at December 31, 2000 Company 28 Three Stripes Ltd. 1) 10) 29 30 31 32 33 34 35 36 Salomon Taylor Made Ltd. 7) Taylor Made Great Britain Ltd. 7) 10) adidas (Ireland) Ltd. 2) Fortstewart Ltd. 2) 10) Three Stripe Exports Ltd. 2) 10) adidas Espana S.A. adidas Italia...

  • Page 102
    .... 3) adidas Promotional Retail Operations Inc. 3) adidas Sales Inc. 3) adidas Village Corporation 3) Taylor Made Golf Co. Inc. Salomon North America, Inc. Salomon Design Center Inc. 8) Bonfire Snowboarding, Inc. Mavic Inc. LXZA Inc. (former LCS America Inc.) 8) 10) adidas-Salomon Canada Ltd. Salomon...

  • Page 103
    ... 8) 10) adidas UK Ireland United States adidas-Salomon International Sourcing directly directly 74 directly 4 directly directly directly directly directly directly 104 100 100 100 99 1 100 100 100 100 100 100 100 2) Sub-group Sub-group 3) Sub-group 4) Sub-group 6) Associated company; due to...

  • Page 104
    ... design. A performance indicator that expresses the Company's net income in relation to the number of ordinary shares issued. Clearance sales These sales are made outside the course of normal business, arising from a pre-planned commercial decision by Management to make discounts to the list price...

  • Page 105
    ... adidas-Salomon ANNUAL REPORT 2000 Emerging markets Equity ratio Markets of newly industrialized countries, such as in Southeast Asia, Latin America and Eastern Europe. Shows the role of shareholders' equity within the financing structure of the Company. It is calculated by dividing shareholders...

  • Page 106
    ...asset (e.g. shares or foreign exchange) at a pre-determined price (strike price) on or before a specific date. The value of orders received for future delivery. At adidas-Salomon, orders are received six to nine months in advance, depending on the season. This information is used by the market as an...

  • Page 107
    ...Committee (SIC) the International Accounting Standards Committee (IASC) and, once adopted, are binding on all IAS users. Supply chain Sustainable development The process of developing, producing and transporting our products to customers. Refers to a business practice which aims to meet the needs of...

  • Page 108
    104 Financial Highlights: Five Year Overview (euros in millions) 2000 P&L Data Net sales Gross profit Operating profit Royalty and commission income Financial result Income before taxes and minority interests Income taxes Minority interests Net income 3) P&L Ratios Gross margin SG&A expenses as a...

  • Page 109
    ... Year Overview 105 adidas-Salomon ANNUAL REPORT 2000 (euros in millions) 2000 Balance Sheet Data Total assets Inventories Receivables and other current assets Working capital Net total borrowings Shareholders' equity Balance Sheet Ratios Financial leverage Equity ratio Data Per Share Earnings...

  • Page 110
    ... Salomon Net sales Gross profit Operating profit Operating assets TaylorMade-adidas Golf Net sales Gross profit Operating profit Operating assets Mavic Net sales Gross profit Operating profit Operating assets * Three year segmental reporting chosen to coincide with length of adidas-Salomon Group...

  • Page 111
    ... Year Overview 107 adidas-Salomon ANNUAL REPORT 2000 (euros in millions) 2000 Regions Europe Net sales Gross profit Operating profit Operating assets North America Net sales Gross profit Operating profit Operating assets Asia Net sales Gross profit Operating profit Operating assets Latin America...

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    ... Calendar Financial Calendar 2001 March 8 2000 Results released Analyst and Press Conferences Conference Call/Webcast May 3 First Quarter Results released Conference Call/Webcast May 10 Annual General Meeting (Fürth, Bavaria) Webcast May 11 Dividend paid* August 7 First Half Year...

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    ...: +49 (9132) 84-3127 Internet: www.adidas.com/investor e-mail: [email protected] adidas-Salomon is a member of DIRK (German Investor Relations Association) and NIRI (National Investor Relations Institute, USA) Concept and Design: külling partner identity Realization: Advantage Doremus...

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