Adidas 2002 Annual Report Download

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adidas-Salomon
ANNUAL REPORT 2002
>PASSION FOR SPORT SPORT IS ABOUT
EXCELLING AS AN INDIVIDUAL. ABOUT
WORKING TOGETHER AS A TEAM. SPORT
CELEBRATES AND ADVANCES THE IDEALS OF
FAIRNESS, COMPETITION AND EXCELLENCE.
SPORT MEANS DIFFERENT THINGS TO
DIFFERENT PEOPLE. BUT THERE IS ONE
THING COMMON TO ALL: PASSION. AND IT’S
EXACTLY THAT PASSION THAT DEFINES
EVERYTHING WE DO.

Table of contents

  • Page 1
    adidas-Salomon ANNUAL REPORT 2002 > PASSION FOR SPORT SPORT IS ABOUT EXCELLING AS AN INDIVIDUAL. ABOUT WORKING TOGETHER AS A TEAM. SPORT CELEBRATES AND ADVANCES THE IDEALS OF FAIRNESS, COMPETITION AND EXCELLENCE. SPORT MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE. BUT THERE IS ONE THING COMMON TO ALL:...

  • Page 2
    ... AT TAYLORMADE-adidas GOLF DELIVER GROSS MARGIN OF 41 TO 43% IMPROVE DSO AND STOCK TURN FOR THE GROUP > CURRENCY-NEUTRAL SALES GREW 23% IN ASIA, 14% IN NORTH AMERICA AND 37% AT TAYLORMADE-adidas GOLF GROSS MARGIN REACHED 43.2% INVENTORIES REDUCED BY 7%, RECEIVABLES UP LESS THAN SALES GROWTH, AGING...

  • Page 3
    PASSION FOR SPORT /// Passion /// Financial Highlights /// Letter to the Shareholders /// PASSION FOR SPORT

  • Page 4
    ..., STRONGER, BETTER. BUT THAT DEDICATION IS A KEY COMPONENT OF PASSION. PASSION DRIVES OUR ATHLETES TO EXCEL. AND IT IS PASSION THAT DRIVES US TO CONTINUALLY DEVELOP AND IMPROVE PRODUCTS TO HELP ATHLETES PERFORM BETTER. 2 PASSION FOR SPORT PASSION

  • Page 5
    3

  • Page 6
    ...-EDGE DESIGN WITH INDUSTRY-LEADING TECHNOLOGIES TO CREATE TRULY INNOVATIVE PRODUCTS. FROM SHOES THAT CUSHION AND GUIDE THE FOOT IN REVOLUTIONARY NEW WAYS TO GOLF CLUBS THAT ALLOW PLAYERS TO HIT THE BALL JUST THAT MUCH FURTHER. WE ARE COMMITTED TO DEVELOPING DISTINCTIVE AND EXCITING PRODUCTS THAT...

  • Page 7
    5

  • Page 8
    ... WANT? WHERE ARE THEY? WE KNOW THAT AN OLYMPIC GOLD MEDALIST AND A WEEKEND ATHLETE HAVE DIFFERENT NEEDS AND EXPECTATIONS. AND THIS KNOWLEDGE DICTATES HOW WE DESIGN, MARKET AND SERVE ALL LEVELS OF ATHLETES FROM BEGINNER TO WORLD CHAMPION. 6 PASSION FOR SPORT PASSION

  • Page 9
    7

  • Page 10
    ...(without goodwill amortization) Operating cash flow per share Dividend per share Share price at year-end 5.04 5.04 6.04 11.77 1.00 1) 82.30 4.60 - 5.49 8.47 0.92 84.30 9.6% - 10.0% 1.4% 8.7% (2.4%) Other at year-end Number of employees Number of shares outstanding Average number of shares 14,716 13...

  • Page 11
    ... 9.4% TaylorMade-adidas Golf Net sales Gross profit Operating profit Number of employees at year-end 707 345 74 1,078 545 281 63 968 29.8% 22.9% 18.7% 11.4% 78% /// adidas is a leading brand in the sporting goods market with strong positions in footwear, apparel and hardware. adidas products offer...

  • Page 12
    ...our business which is all about sport. Our Group's culture revolves around a passion for sport. This is what characterizes our work ethic and our management style. Biographies of our Executive Board members are included in this annual report (see Corporate Governance). Letter to the Shareholders 10...

  • Page 13
    ... T-MAC and the T-MAC 2 both became best-selling shoes in the USA - something no adidas shoe had done in six years. Herbert Hainer, 48 /// Chairman and Chief Executive Officer / German Sport and business are basically the same. To win, you have to have the right team, passion for what you do and the...

  • Page 14
    ... of this success, TaylorMade is now the global leader in metalwood sales. And our acquisition of the Maxfli golf ball brand has further strengthened our golfing product range. Salomon continues as the number one winter sports brand, despite two seasons of tough snow conditions. More importantly...

  • Page 15
    ... teams for all areas of our business: adidas Sport Performance, adidas Sport Heritage, adidas Sport Style, Salomon and TaylorMade-adidas Golf. In addition, we made major headway in further increasing speed to market, including taking 30 days out of the footwear production process. Our work on social...

  • Page 16
    ...the global leader in the sporting goods industry. In 2003, we expect to grow sales and profitability in all regions. Our targets are revenue growth of around 5% and earnings growth of between 10 and 15%. Michel Perraudin, 55 /// Human Resources, Key Projects and Corporate Services / Swiss At adidas...

  • Page 17
    ... us, but the success of the past three years gives me great confidence that our Group can meet the high expectations we've set for ourselves. Before I close, I want to thank all of the adidas-Salomon employees for their dedication and commitment over the last year. Winning is a team effort, and I am...

  • Page 18
    Corporate Mission Statement Locations Operational and Sporting Highlights Our Share /// Page 18 /// Page 20 /// Page 22 /// Page 24 16 THE GROUP

  • Page 19
    ENERGY. ENTHUSIASM. INNOVATION. OUR PASSION IS TO BE FIRST, TO SET THE PACE, TO TAKE SPORT TO A NEW LEVEL. /// THE GROUP THE GROUP /// Corporate Mission Statement /// Locations /// Operational and Sporting Highlights /// Our Share

  • Page 20
    ... DESIGN LEADERS WHO SEEK TO HELP ATHLETES OF ALL SKILL LEVELS ACHIEVE PEAK PERFORMANCE WITH EVERY PRODUCT WE BRING TO THE MARKET. > WE ARE A GLOBAL ORGANIZATION THAT IS SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE AND FINANCIALLY REWARDING FOR OUR EMPLOYEES AND SHAREHOLDERS. Corporate Mission Statement...

  • Page 21
    ...COMPETITIVE POSITION AND FINANCIAL PERFORMANCE. IN THE MEDIUM TERM, WE WILL EXTEND OUR LEADING MARKET POSITION IN EUROPE, EXPAND OUR SHARE OF THE US FOOTWEAR MARKET TO 20% AND CONTINUE TO DELIVER SIGNIFICANT SALES INCREASES IN ASIA. THE RESULTING TOP-LINE GROWTH, TOGETHER WITH CONTINUED COST CONTROL...

  • Page 22
    ... /// 20/// /// adidas-Salomon in the World /// adidas-Salomon IS A GLOBAL PLAYER WHICH IS REPRESENTED IN MARKETS ALL OVER THE WORLD. THE GROUP COMPRISES 114 SUBSIDIARIES WITH HEADQUARTERS IN HERZOGENAURACH, GERMANY. OUR PRIMARY LOCATIONS ARE ILLUSTRATED ON THE ABOVE WORLD MAP, HIGHLIGHTING OUR...

  • Page 23
    ...France NORTH AMERICA (13) adidas Salomon North America Inc. /// Portland, Oregon / USA (14) Taylor Made Golf Co. Inc. /// Carlsbad, California / USA (15) Arc'Teryx Equipment, Inc. /// Vancouver / Canada (16) Bonfire Snowboarding, Inc. /// Portland, Oregon / USA ASIA (17) adidas-Salomon International...

  • Page 24
    ... contract with adidas. ( 4 ) MAY /// Three-time World Champion Maurice Greene enters a long-term sponsorship agreement with adidas. JULY /// adidas-Salomon extends its partnership with FC Bayern Munich by acquiring a 10% share in FC Bayern München AG. ( 6, 7 ) (5) SPORTING HIGHLIGHTS 2002...

  • Page 25
    ...MAC 2 basketball shoe is the No.1 selling shoe in the USA. (14 ) DECEMBER /// TaylorMade takes over the prestigious No.1 position in new driver usage among US golfers. (15) DECEMBER /// The adidas-Salomon share ends the year as the top performer within the DAX-30, Germany's premiere stock index, for...

  • Page 26
    ... RATIO AT THE TOP END OF THE GROUP'S DIVIDEND POLICY, WE PROVIDED ADDITIONAL EVIDENCE OF OUR ONGOING COMMITMENT TO OUR SHAREHOLDERS IN 2002. THE adidas-Salomon SHARE Number of shares outstanding 2002 average at year-end 2002 Type of share Free float Initial Public Offering Stock exchange Stock...

  • Page 27
    ... adidas-Salomon share will be traded exclusively on the Frankfurt Stock Exchange and the other eight regional exchanges in Germany. adidas-Salomon also has an unsponsored ADR program in the USA according to Rule 144A, which is limited to qualified institutional investors. MEMBERSHIP IN HIGH-QUALITY...

  • Page 28
    ... AT TOP END OF GROUP DIVIDEND RANGE /// After paying a dividend of â,¬ 0.92 per share in each of the last three years, the adidas-Salomon Executive and Supervisory Boards will recommend a dividend of â,¬ 1.00 for the 2002 fiscal year to our shareholders at the Annual General Meeting on May 8, 2003...

  • Page 29
    ... site. Similarly, information regarding the Group's Management Stock Option Plan (MSOP) is available (see note 30). In addition, adidas-Salomon webcasts all its analyst conferences as well as the Annual General Meeting and Investor Day presentations. A calendar showing all financial reporting dates...

  • Page 30
    GROUP STRATEGY OUR BRANDS AND DIVISIONS adidas Sport Performance adidas Sport Heritage adidas Sport Style Salomon TaylorMade-adidas Golf BRAND STRATEGIES /// Page 30 /// Page 32 /// Page 36 /// Page 40 /// Page 44 /// Page 48 /// Page 52 /// Page 56 28 STRATEGY

  • Page 31
    DEDICATION. DEVELOPMENT. EXCELLENCE. WE FOCUS WITH A PASSION. WE KNOW THAT THE FIRST STEP TOWARDS ACHIEVING GREAT THINGS IS SETTING HIGH GOALS. /// STRATEGY STRATEGY /// Group Strategy /// Our Brands and Divisions /// Brand Strategies

  • Page 32
    ... Marketing Operations Sales fashion-conscious consumers adidas Sport Style Marketing Operations Sales freeride athletes Salomon Marketing Operations Sales golfers TaylorMade-adidas Golf Marketing Operations Sales Our Strategy /// THE adidas-Salomon STRATEGY IS FOCUSED ON CONTINUOUSLY DEVELOPING...

  • Page 33
    ... lines. We have already structured the entire marketing and operations activities in this way. Our next priority is to extend this model to our global sales function, and at the same time to increase our consumer research to continually expand our knowledge about our primary target groups. DESIGN...

  • Page 34
    ... seek to extend the unique and authentic heritage of adidas to the lifestyle market. Revenues from the Sport Heritage division currently comprise 18% of brand adidas sales. adidas SPORT STYLE /// This division, which first releases products in 2003, targets the growing set of cosmopolitan consumers...

  • Page 35
    ...TAYLORMADE /// TaylorMade offers a full range of golf hardware and accessories. It is a leader in the industry and the number one supplier of metalwoods. adidas GOLF /// adidas Golf is a leading supplier of high-quality golf footwear and apparel. MAXFLI /// Maxfli designs and develops premium golf...

  • Page 36
    ... A FASHION STATEMENT. IN FACT, WE HAVE IDENTIFIED AND ARE WORKING TO SATISFY FIVE DISTINCT GROUPS OF CONSUMERS. WE BELIEVE THAT EACH OF THESE GROUPS HAS DIFFERENT PRODUCT NEEDS, BUYING PATTERNS, MARKETING DEMANDS AND IN PARTICULAR A DIFFERENT PASSION THEY BRING WITH THEM TO SPORT. 34 STRATEGY OUR...

  • Page 37
    ... LE CT IV ITY FO RS HR OU GH OU TF OO TS TR IK E AF ET OU YI T N S WE OL LO AR E/ W LIG AR // a HT EA diW S. CO E AR ® FL ND EX ITI GR OUT ON OO SO S VE LE SF FO OR R OP MAX TIM IM AL UM FO DU RE...

  • Page 38
    ... BY SPORT PERFORMANCE. TENNIS /// adidas IS THE WORLD LEADER IN PERFORMANCE TENNIS FOOTWEAR AND APPAREL. FOOTBALL /// PERHAPS THE SPORT MOST STRONGLY IDENTIFIED WITH THE adidas BRAND, FOOTBALL ENJOYS A LONG TRADITION AT adidas AND THIS IS REFLECTED IN OUR NUMBER ONE POSITION GLOBALLY. 36 STRATEGY...

  • Page 39
    TRAINING /// adidas' LARGEST APPAREL CATEGORY, WE SPECIALIZE IN APPAREL THAT ENHANCES SPORT PERFORMANCE. HERE, WE ENJOY A NUMBER TWO POSITION GLOBALLY. RUNNING /// adidas IS NUMBER TWO IN THE WORLD'S BIGGEST SPORTS CATEGORY, WITH ONE OF THE STRONGEST PRODUCT PIPELINES IN THE INDUSTRY. THIS CATEGORY...

  • Page 40
    ... OF adidas CUTTING-EDGE TECHNOLOGIES SUCH AS CLIMACOOL®, a3®, THE PREDATOR® FOOTBALL SERIES AND THE SUPERNOVA RUNNING SHOE FAMILY. PRODUCTS ARE DESIGNED TO ENHANCE AN ATHLETE'S PERFORMANCE AT ALL LEVELS OF COMPETITION. THROUGH ENSURING THAT OUR PRODUCTS ARE "ENGINEERED TO PERFORM", WE MEET AND...

  • Page 41
    ... 3 C 60° CL ® OO LIN OR GF E THE NT IRE T FOO AVAIL ER 2 IN OV ABLE ORS 0 COL LL BASKETBA G, TENNIS, IN RUNNIN NG AND TRAINI PRODUCTS SUP POR FOO T ND MIC NA DY MID V AT TIL EN K ION E EP T2 OO SF 0% T CO OL A ER D ND RIE R OPE ad iPR NM ESH EN...

  • Page 42
    ...THAN 75 YEARS AGO WITH THE SPORTING LIFESTYLE OF TODAY'S WORLD. THE RESULT IS THE PERFECT FUSION OF SPORT AUTHENTICITY AND GLOBAL STREET STYLE. WE TARGET TREND-SETTERS AND YOUTH AROUND THE WORLD WHO LOVE AND PURCHASE PRODUCTS INSPIRED BY OUR GENUINE AND UNIQUE SPORT HERITAGE. 40 STRATEGY OUR BRANDS...

  • Page 43
    ... AST EF ES R TG IN OW G EG CAT Y OR OF THE D IVIS ,T ION HIS BU SIN IS S ESS UP POR TE DB AR YT GET ED D RI IST BU TIO NI ASH NF ION , DE NIM AN DT D REN SHO PS. LA BE L. C AC SO ES RI ES / // A ...

  • Page 44
    ..., EXPERIENCE AND CRAFTSMANSHIP, AND UPDATED FOR TODAY'S CONTEXT. THESE PRODUCTS ARE "ONCE INNOVATIVE, NOW CLASSIC, ALWAYS AUTHENTIC". REKORD SUEDE /// TRAINING SHOE MONZA GRAND PRIX /// RALLY DRIVING SHOE MID FORUM /// BASKETBALL SHOE 42 STRATEGY OUR BRANDS AND DIVISIONS /// adidas SPORT HERITAGE

  • Page 45
    CAT TRACKSUIT /// A FITTED SPORTS OVERALL FEATURING CLASSIC 3-STRIPES BRANDING 58 SHOE SACK /// ONE OF THE FIRST BAGS EVER TO BE PRODUCED BY adidas 43

  • Page 46
    ... CARGO PANT JACKET /// RIB TANK /// PINSTRIPE PANT HOODED JACKET /// TANK PINSTRIPE PANT KNIT JACKET /// MESH TEE /// SKIRT KNIT CARDIGAN /// HOT PANT 44 STRATEGY OUR BRANDS AND DIVISIONS /// adidas SPORT STYLE HOODED SWEAT /// WOVEN PANT LONGSLEEVE DRESS PLAIN BIG TEE /// KNIT PANT HOODED...

  • Page 47
    DRAWCORD JACKET /// WOVEN PANT PANT /// ZIP POLO SHORT DRESS 45

  • Page 48
    adidas Sport Style /// adidas Y-3 IS THE FUTURE IN SPORTSWEAR. INFLUENTIAL DESIGN AND NEW TECHNOLOGY COMBINED WITH THE HIGHEST QUALITY STANDARDS CLEARLY DISTINGUISH Y-3 FROM ANY OTHER SPORTSWEAR LINE. IT COMBINES FASHION ELEGANCE AND SPORTS FUNCTIONALITY IN CHIC SPORTSWEAR FOR EVERYDAY LIFE IN A WAY...

  • Page 49
    Y-3 SHOPPER /// HANDBAG Y-3 IMAGE PRODUCT /// LEG WARMER Y-3 SPRINT /// RUNNING SHOE Y-3 FIELD /// FOOTBALL-INSPIRED SHOE 47

  • Page 50
    ... REQUIRES A MULTI-BRAND APPROACH. TEAMING UP WITH MAVIC, BONFIRE, ARC'TERYX AND CLICHÉ, SALOMON IS BREAKING NEW GROUND AND SETTING NEW STANDARDS. BIKING /// MAVIC IS THE WORLD'S LEADING BRAND IN BIKE COMPONENTS FOR BOTH RACING AND MOUNTAIN BIKING. SKATING /// SALOMON IS THE THIRD LARGEST SUPPLIER...

  • Page 51
    ... AND APPAREL OR THE EXCITING OUTDOOR TECHNICAL APPAREL FROM ARC'TERYX, SALOMON IS GROWING QUICKLY IN THIS IMPORTANT BUT HEAVILY FRAGMENTED CATEGORY. SNOWBOARDING /// AS THE NUMBER THREE WORLDWIDE IN SNOWBOARDING, SALOMON AND BONFIRE PRODUCE OUTSTANDING HARDWARE AND APPAREL FOR THIS CATEGORY. 49

  • Page 52
    Salomon /// SALOMON´S TOP PRIORITY IS PRODUCT INNOVATION. AND AS A RESULT, IT HAS A PIPELINE OF PRODUCTS THAT NO OTHER SUPPLIER OF WINTER SPORTING GOODS CAN MATCH. IN SUMMER PRODUCTS, TOO, THIS IS A CRITICAL FACTOR IN THE FAST SALES GROWTH OF THESE PRODUCTS. CROSSMAX™ 10.0 /// SKI BOOT ADVANCED ...

  • Page 53
    SALOMON FSK /// IN 2003, WE WILL INTRODUCE OUR SECOND SEASON OF NEW FREESKATING PRODUCTS. THEY REPRESENT THE PERFECT FUSION OF SPEED AND VERSATILITY FOR THE CREATIVE URBAN SKATER. 51

  • Page 54
    ... OTHER GOLF COMPANY. FOOTWEAR AND APPAREL /// adidas GOLF BRINGS THE STRENGTH OF THE adidas NAME TO THESE LUCRATIVE GOLF CATEGORIES. ALTHOUGH THE GROUP'S GLOBAL MARKET SHARE IS CURRENTLY SMALL, THIS IS THE AREA WHERE WE PROJECT THE HIGHEST GROWTH RATES IN THE COMING YEARS. 52 STRATEGY OUR BRANDS...

  • Page 55
    GOLF BALLS /// THANKS TO OUR ACQUISITION OF MAXFLI, WE NOW COMMAND AN 8% MARKET SHARE IN GOLF'S SECOND LARGEST CATEGORY. 53

  • Page 56
    ... OUR STRENGTH AND A MAJOR REASON BEHIND OUR RAPID GROWTH DURING THE LAST FEW YEARS IS OUR UNIQUE ABILITY TO CREATE AND MARKET EXCITING NEW PRODUCTS MORE QUICKLY AND CONSISTENTLY THAN ANY OF OUR COMPETITORS. R500 D RIVER R510 D RIVER 54 STRATEGY OUR BRANDS AND DIVISIONS /// TAYLORMADE-adidas GOLF

  • Page 57
    ... DR QUINTUPLICATE ZONE (ZERO OFF-C ENTER NEGATIVE EFFECT) Y PU LLFAC E CLU BH EAD IM U OPT UBHE M CL EE AD SP T ALIGNMENT AND LAUNCH ANGLE D, IMPAC HIGH EST COR F RO TW C- TU NA B LE WE IG HT CA R TR IDG M TA Y L ORM AD E. 860 E 55

  • Page 58
    ... products in all our sports categories. Our top five priorities are running, football, basketball, tennis and training. We have number one or two positions globally in all of these categories. MAJOR INITIATIVES IN RUNNING /// Running is the world's largest footwear category and an area where adidas...

  • Page 59
    ... few years as fashion suppliers, vertical retailers, licensed athletic apparel and generic products have all become important competitive elements in the market. Previously, this market had been dominated only by sporting goods companies. adidas Colours, our new strongly-branded apparel line, will...

  • Page 60
    Salomon /// AT SALOMON, WE HAVE OUR ORIGINS IN WINTER SPORTS AND ARE THE CLEAR MARKET LEADER IN THIS SECTOR IN TERMS OF SALES, PRODUCT INNOVATIONS AND RACING RESULTS. DOMINATING THE 2002 OLYMPIC GAMES IN SALT LAKE CITY, WE ARE THE NUMBER ONE SUPPLIER OF SKI BOOTS, BINDINGS AND CROSS-COUNTRY PRODUCTS...

  • Page 61
    ... managing the marketing and distribution of the Maxfli and Slazenger Golf brands under a license arrangement with Dunlop Slazenger Group, providing TaylorMade-adidas Golf with a leading position in the golf ball category. At the end of the year, we decided to end operations in the Slazenger business...

  • Page 62
    ... and Sector Development Group Business Performance Research and Development Finance and Investment adidas adidas Development in Europe adidas Development in North America adidas Development in Asia adidas Development in Latin America Salomon TaylorMade-adidas Golf Risk Management Outlook CORPORATE...

  • Page 63
    POWER. STAMINA. SPEED. WE COMPETE WITH PASSION. WE HAVE THE WILL TO WIN. REPORTING /// Management Discussion & Analysis /// Corporate Governance /// Global Operations /// Sustainability /// Employees /// REPORTING

  • Page 64
    ... to issue sales and profit warnings. Nevertheless, most of the major suppliers were able to increase both their sales and earnings. MIXED CONDITIONS AT SPORTING GOODS RETAIL IN EUROPE /// In Europe, the picture for the sporting goods market was mixed, developing similarly to the national economies...

  • Page 65
    ... prior year CURRENCY-NEUTRAL NET SALES GROWTH BY BRAND AND REGION 1) in % Europe North America 10 2 39 14 Asia Latin America 31 45 - 31 Total adidas Salomon TaylorMade-adidas Golf Total 1) 4 3 35 5 26 (18) 32 23 10 (1) 37 11 Versus the prior year adidas /// CLIMACOOL ® 2 ADVENTURE SHOE 63

  • Page 66
    ... in Italy, UK, Spain and France, driven by our strong footwear range. Emerging market sales also continued to grow substantially, supported in particular by sales growth in Russia and the Middle East. TaylorMade-adidas Golf was also one of the main drivers of growth in Europe, with sales up 34...

  • Page 67
    ... 35% of total Group sales. Apparel growth drivers were the adidas Sport Performance football and basketball categories, where sales grew 35% and 101% respectively. This reflects the strength of the adidas 2002 FIFA World Cupâ„¢ activities as well as an extended product range in the basketball...

  • Page 68
    ...-adidas Golf and Salomon. In Latin America, the gross margin declined 0.9 percentage points from 40.8% to 39.9%, impacted by negative currency developments. OPERATING EXPENSES AS A PERCENTAGE OF SALES INCREASE IN LINE WITH MANAGEMENT EXPECTATIONS /// Operating expenses, including selling, general...

  • Page 69
    ....0% of sales).The main driver of this growth was additional costs related to the 2002 FIFA World Cupâ„¢ activities. These expenditures were taken with a longterm view to further strengthen the competitive strategic position of the Group's core brand. At Salomon, marketing working budget expenditures...

  • Page 70
    ... soft goods sales. TaylorMade-adidas Golf had another excellent year with operating profit growing 19% from â,¬ 63 million in 2001 to â,¬ 74 million in 2002, driven by healthy revenue gains in Asia, the success of metalwoods and new product introductions. The Group's operating profit comparison was...

  • Page 71
    ... of our research and development activities are located in Herzogenaurach, Germany, and Portland /Oregon, USA. Product design and product development for the Sport Heritage products and the Sport Performance categories running, football, tennis and training takes place at the development center in...

  • Page 72
    ...GOLF RESEARCH CLOSE TO MARKET /// For Salomon and TaylorMade-adidas Golf the research and development of products is located at each brand's respective headquarters. Salomon's research and development as well as its marketing and design activities are mainly concentrated at the Salomon Design Center...

  • Page 73
    ... the remaining shares in adidas Italy and the acquisitions of Arc'Teryx and Maxfli as well as our 10% participation in the Bayern Munich football club. The expansion of adidas own-retail activities and the completion of our headquarter facilities in North America also caused fixed assets to increase...

  • Page 74
    ... level of â,¬ 177 million and included the purchase of tangible, intangible and financial assets. Spending for property, plant and equipment such as investments in adidas own-retail activities and in the headquarter facilities in North America decreased by 29% from â,¬ 160 million in 2001 to â,¬ 114...

  • Page 75
    ... CREDIT FACILITIES â,¬ in millions REMAINING TIME TO MATURITY OF AVAILABLE FACILITIES â,¬ in millions Short-term lines 1,486 < 1 year 1,486 1 to 3 years Medium-term committed lines 1,427 3 to 5 years 517 1,209 Private placements 560 > 5 years 261 BORROWING INSTRUMENTS â,¬ in millions...

  • Page 76
    ...-retail activities. Own retail within adidas consists of four major components: concept stores, concession corners in developing markets, factory outlets and Internet sales. In 2002, adidas operated 162 concept stores (2001: 120). These stores market Sport Performance and /or Sport Heritage products...

  • Page 77
    ...2002. Drivers of this improvement were increased own-retail activities as described above, lower clearance sales and an improving product mix. Despite the heavily promotional retail environment in the USA, adidas gross margin increased in all regions except Latin America. OPERATING EXPENSES INCREASE...

  • Page 78
    ... main drivers of this improvement are lower clearance sales, higher price points and increased own-retail activities in Europe. In addition, the improving product mix also helped margin development in the region. adidas COLOURS /// HALTERTOP 76 REPORTING MANAGEMENT DISCUSSION & ANALYSIS /// adidas...

  • Page 79
    ... solid rates in all major markets. As a result, adidas expects mid-single-digit sales growth in Europe for 2003. adidas IN EUROPE â,¬ in millions 2002 Net sales Gross margin Operating profit 2,694 40.0% 393 2001 2,600 38.0% 381 Change 4% 2.0pp 3% DEVELOPMENT OF adidas ORDER BACKLOG IN EUROPE 1) 14...

  • Page 80
    ... the prior year. This reflects the impact of the strong licensed apparel market in the USA and the extremely promotional environment for kids products. IMPROVING PRODUCT MIX AND LOWER CLEARANCE SALES DRIVE GROSS MARGIN IMPROVEMENTS IN NORTH AMERICA /// The gross margin in North America improved...

  • Page 81
    ... Net sales Gross margin Operating profit 1,378 35.9% 138 2001 1,322 34.8% 113 Change 4% 1.1pp 22% DEVELOPMENT OF adidas ORDER BACKLOG IN NORTH AMERICA 1) 25% 20% 15% 10% 5% 0% -5% -10% -15% Q1 2001 Q4 2002 Total in â,¬ Total currency neutral 1) At end of quarter, change year-over-year adidas...

  • Page 82
    ... Net sales Gross margin Operating profit 867 45.5% 107 2001 726 44.5% 93 Change 20% 1.0pp 15% DEVELOPMENT OF adidas ORDER BACKLOG IN ASIA 1) 35% 30% 25% 20% 15% 10% 5% 0% -5% Q1 2001 Q4 2002 Total in â,¬ Total currency neutral 1) At end of quarter, change year-over-year 80 REPORTING MANAGEMENT...

  • Page 83
    .... The primary drivers of this growth will be improved brand positioning in major markets as well as increased adidas own-retail programs. The Group also expects to continue to improve local sourcing efforts in the region, which will drive margin improvements and reduce risks related to currency...

  • Page 84
    ... 2002. THE CONTINUED DEVELOPMENT OF FOOTWEAR AND APPAREL ACTIVITIES IS EXPECTED TO HELP SALOMON GROW SALES AND PROFITS IN 2003 DESPITE UNFAVORABLE CURRENCY EFFECTS AND THE WEAK GLOBAL WINTER SPORTS MARKET. SALOMON AT A GLANCE â,¬ in millions 2002 Net sales Gross margin Operating profit 684 40.8% 39...

  • Page 85
    ...profit was affected by the first-time inclusion of Arc'Teryx sales, which carry a lower average margin than other Salomon products. As a result, Salomon margin was 40.8%, down 3.1 percentage points from the previous year's level of 43.8%. OPERATING EXPENSES DECREASE /// Operating expenses at Salomon...

  • Page 86
    ... MID-YEAR, WAS THE PRIMARY REASON FOR THIS SALES GROWTH. ADDITIONALLY, FIRSTTIME INCLUSION OF SALES FROM MAXFLI AND SLAZENGER GOLF CONTRIBUTED â,¬ 97 MILLION TO TOP-LINE REVENUES. GROSS PROFIT AT TAYLORMADE-adidas GOLF INCREASED 23% FROM â,¬ 281 MILLION IN 2001 TO â,¬ 345 MILLION IN 2002. OPERATING...

  • Page 87
    ... reflects lower margins in North America, which resulted from the very promotional golf market. In addition, the new golf ball business introduced with Maxfli and Slazenger Golf carries a lower margin than the overall TaylorMade-adidas Golf business. OPERATING PROFIT GROWS 19% /// Operating profit...

  • Page 88
    ... impact on sales and margins. To manage this risk, we conduct market and trend research regarding design, quality, image and price point issues. We continuously work on the development of technology and design innovations to ensure that our products are up-to-date and that they meet consumer needs...

  • Page 89
    ...quality and /or delivery delays can impact Group revenue and reputation. To mitigate this risk, adidas-Salomon employs more than 100 quality control officers who monitor factory performance. Detailed product cost analyses are performed both before purchase and over time to ensure competitive pricing...

  • Page 90
    ... Malpractice in these areas can have a significant impact on the reputation and operational efficiency of our Group and its suppliers. Our Social and Environmental Affairs (SEA) team monitors the factories of adidas-Salomon suppliers to ensure compliance with social, environmental, health and safety...

  • Page 91
    ... to reduce and transfer risk as much as appropriate. For example, in 2002 we founded a captive insurance company (adidas International Re Ltd.) in Dublin, which will commence its business activities in 2003, helping to improve risk management and better utilize the Group's financial resources. With...

  • Page 92
    ...IMPORTANT YEAR FOR adidas-Salomon. DESPITE TOUGH MARKET CONDITIONS GLOBALLY, WE ARE CONFIDENT THAT CONCENTRATION ON THE GROUP'S STRATEGIC PRIORITIES WILL HELP US DELIVER STRONG TOP- AND BOTTOM-LINE PERFORMANCE IN 2003. THIS INCLUDES INCREASING OUR FOCUS ON THE CONSUMER, LEADING IN DESIGN AND PRODUCT...

  • Page 93
    ... at double-digit rates. In football, the Women's World Cup in China will continue to generate excitement for football and adidas products. Positive sales growth but at lower rates is also expected in the training and tennis categories. DOUBLE-DIGIT GROWTH CONTINUES AT adidas SPORT HERITAGE /// The...

  • Page 94
    ...Salomon Group plans to deliver gross margins in a range of 42 to 43% during 2003. This represents a tighter range than we have given for the last two years and reflects our confidence in the Group's ability to continue to improve its product mix and increase its proportion of adidas own-retail sales...

  • Page 95
    ... important year for adidas-Salomon. The Group has exciting innovations and events to showcase its products in 2003. In the medium term, adidas-Salomon strives to extend its market-leading position in Europe, expand its share of the US footwear market to 20% and continue to deliver significant sales...

  • Page 96
    ... group developed adidas-Salomon's Corporate Governance Principles, based on the German Corporate Governance Code as well as on the recommendations of other internationally recognized codes of best practice. In December 2002, the Executive and Supervisory Boards issued the adidas-Salomon Declaration...

  • Page 97
    ... total issued under the Group's Management Stock Option Plan (MSOP) (see note 30). This plan provides additional compensation when absolute and /or relative performance targets for the development of the adidas-Salomon share price occur. We report the cumulative remuneration of the Executive Board...

  • Page 98
    ... financial community regarding major changes in the shareholder structure, as soon as an investor acquires, exceeds or falls below 5%, 10%, 25%, 50% or 75% of the voting rights in the Group. This occurs on the corporate website and in a national journal for statutory stock market notices in Germany...

  • Page 99
    ... an Audit and Accounts Committee that assumes these responsibilities in 2003 (§ 5.3.2). > The German Corporate Governance Code recommends reporting the shareholdings of individual Executive and Supervisory Board members if these directly or indirectly exceed 1% of the shares issued by a company. It...

  • Page 100
    ... its approval to issuance of the fourth tranche of the stock option plan (MSOP) for management executives of adidas-Salomon AG and its affiliated companies. The development of sales and earnings for the Group and the individual operational units was the subject of regular consultations. In August...

  • Page 101
    ...üfungsgesellschaft, Frankfurt am Main, has audited the financial statements of adidas-Salomon AG for the year under review prepared by the Executive Board in line with the provisions of the German Commercial Code (HGB) as well as the management report. The auditor issued an unqualified opinion...

  • Page 102
    ...-Perret, France 1) FRITZ KAMMERER /// 2) DEPUTY CHAIRMAN Member of the General Committee and the Mediation Committee 57, German Chairman of the Central Works Council, adidas-Salomon AG SABINE BAUER /// 2) 39, German System Manager Footwear Quality, Global Operations, adidas-Salomon AG DR. HANS...

  • Page 103
    ... Stock Corporation Act) Employee representative Position and mandate 2) 3) HANS RUPRECHT /// 2) (since January 1, 2002) 48, German Sales Director Customer Service, Area Central, adidas-Salomon AG Director, Kircal Ltd., London, UK 1) Non-Executive Director, Profile Media Group plc., London, UK...

  • Page 104
    ... of adidas America. In 2002, he was appointed to the adidasSalomon Executive Board and is responsible for the North American business. He is married, has two daughters and is located at the Group's North American headquarters in Portland, Oregon. SALOMON /// TR 3 VITESSE INLINE SKATE 102 REPORTING...

  • Page 105
    ... well as working as an independent consultant. Robin Stalker joined adidas AG 1) as the Head of Corporate Services and Group Reporting in 1996. Since February 2000, he has been Chief Financial Officer of adidas-Salomon and was appointed to the Executive Board, responsible for Finance, in 2001. He is...

  • Page 106
    ...TERMS OF QUALITY, COSTS AND DELIVERY PERFORMANCE. ALIGNING ACTIVITIES AND SHARING BEST PRACTICE /// In 2002, Global Operations reorganized its activities to better service the large portfolio of brands at adidas-Salomon. As a result, our consumer-oriented structure was extended to Global Operations...

  • Page 107
    ..., supply chain management means optimizing the delicate balance between costs, quality and delivery performance, and this is a major priority for us. This is why our Global Operations activities are currently focused on two key areas: lead-time reduction and new supply chain models. Lead times in...

  • Page 108
    ...) and the model code of conduct of the World Federation of the Sporting Goods Industry (WFSGI) . The SOE details our requirements regarding labor, health, safety and environmental issues in our suppliers' factories and forms the foundation for our international factory-monitoring program. ENSURING...

  • Page 109
    .... More information regarding sustainability topics can be found in our current Social and Environmental Report and on the Internet at www.adidas-Salomon.com /en /sustainability/. a /// b /// c /// a /// FTSE4GOOD EUROPE INDEX b /// FAIR LABOR ASSOCIATION c /// DOW JONES SUSTAINABILITY GROUP INDEX...

  • Page 110
    ... age is 33. This pattern holds true for the whole Group. The majority of our employees work at brand adidas. Production activities at Salomon, however, elevate their number of employees. Regionally, the employee split largely reflects the Group's proportion of sales. Despite our diverse backgrounds...

  • Page 111
    ...of 30% compared to the prior year. COMMITTED TO LONG-TERM CAREER DEVELOPMENT /// At adidas-Salomon, we believe that education and learning are critical to the long-term success of our Group. With personnel /management development programs, we strive to ensure that our employees continue to grow and...

  • Page 112
    ... Cash Flows Consolidated Statement of Changes in Equity Statement of Movements of Fixed Assets Notes Notes to the Consolidated Balance Sheet Notes to the Consolidated Income Statement Notes - Additional Information Shareholdings SUPPLEMENTARY INFORMATION Glossary Segmental Information Summary of Key...

  • Page 113
    EFFORT. DETERMINATION. RESOLVE. OUR GOALS ARE AMBITIOUS. AND WE HAVE THE PASSION IT TAKES TO ACHIEVE THEM. FINANCIAL ANALYSIS /// Executive Board Statement /// Consolidated Financial Statements (IFRS) /// Supplementary Information /// FINANCIAL ANALYSIS

  • Page 114
    ... of Company Divisions (KonTraG). As a consequence, a true and fair view of the Group's financial position, results of operations and cash flows and its reporting thereon is assured and the Executive Board is in a position to recognize potential investment risks and negative developments at...

  • Page 115
    ... assets, financial position, results of operations and cash flows of the adidas-Salomon Group for the business year in accordance with International Financial Reporting Standards. Our audit, which also extends to the group management report prepared by the Company's Management for the business year...

  • Page 116
    ... cash equivalents Accounts receivable Inventories Other current assets Total current assets Property, plant and equipment, net Goodwill, net Other intangible assets, net Deferred tax assets Other non-current assets Total non-current assets Total assets Short-term borrowings Accounts payable Income...

  • Page 117
    ...9.6 - Net sales Cost of sales Gross profit Selling, general and administrative expenses Depreciation and amortization (excl. goodwill) Operating profit Goodwill amortization Royalty and commission income Financial expenses, net Extraordinary income Income before taxes Income taxes Net income before...

  • Page 118
    ...in FC Bayern München AG Decrease in investments and other long-term assets Interest received Net cash used in investing activities Financing activities: Increase/(Decrease) in long-term borrowings Dividends of adidas-Salomon AG Dividends to minority shareholders Share options exercised by employees...

  • Page 119
    ...1,050,447 Fair values of financial instruments Retained earnings Total Balance at December 31, 2000 Cumulative effect of the adoption of IAS 39, net of tax Restated balance at January 1, 2001 Net income Dividend payment Net gain on cash flow hedges, net of tax Net loss on net investments in foreign...

  • Page 120
    STATEMENT OF MOVEMENTS OF FIXED ASSETS â,¬ in thousands Goodwill Software, patents, trademarks and concessions Advance payments Total intangible assets Land and buildings ACQUISITION COST December 31, 2000 Currency effect Additions Changes in companies consolidated Transfers Disposals December 31, ...

  • Page 121
    ... Total tangible assets Shares in affiliated companies Participations Other financial assets Total financial assets...117) 115,546 1,926 (7,354) (57,045) 735,592 2,959 3 731 (484) - - 3,209 (4) 58 (753) - - 2,510 135 1 30 - - - 166 1 76,972 - - - 77,139 16,152 793 3,473 - - (8,574) 11,844 (1,655...

  • Page 122
    adidas-Salomon AG, a listed German stock corporation, and its subsidiaries design, develop, produce and market a broad range of athletic and sports lifestyle products. The Group has divided its operating activities by major brands into three segments: adidas, Salomon and TaylorMadeadidas Golf. ...

  • Page 123
    ... within shareholders' equity without affecting income. In the individual financial statements of Group companies, monetary items denominated in a foreign currency are generally measured at closing exchange rates at the balance sheet date. The resulting currency gains and losses are recorded directly...

  • Page 124
    ... asset are transferred to the Group, the asset less accumulated depreciation and the corresponding liability are recognized at the fair value of the asset or the lower net present value of the minimum lease payments. Research and Development Research costs are expensed as incurred. Development costs...

  • Page 125
    ... Compensation Benefits Share options are granted to members of the Executive Board of adidas-Salomon AG as well as to the Managing Directors/Senior Vice Presidents of its affiliated companies and to further senior executives of the Group in connection with the management share option plan (MSOP...

  • Page 126
    ...to German accounting policies "unrealized" profits must be included in the income statement in certain cases. The following balance sheet items are translated at foreign exchange rates ruling at the end of the year even if this leads to an "unrealized" profit compared with using the exchange rate at...

  • Page 127
    ..., the stock aging structure continues to improve. The majority of marketable securities relates to commercial paper and certificates of deposit in Eastern European currencies with a maximum maturity of 90 days. In addition to short-term cash, at year-end 2001 adidas Korea had cash accounts with...

  • Page 128
    ... portion is being used for the adidas-Salomon international headquarters "World of Sports", which is included under property, plant and equipment. The area to be sold is currently lying idle and has a size of 77 hectares. According to the "Urban Design Contract", signed with the town Herzogenaurach...

  • Page 129
    ... transaction costs, as this equity security does not have a quoted market price in an active market and other methods of reasonably estimating fair value as at December 31, 2002 are inappropriate or unworkable. Additionally, financial assets comprise shares in unconsolidated affiliated companies of...

  • Page 130
    ... 47 Total 1,106 280 155 225 1,766 Information regarding the Group's protection against interest rate risks is also included in these notes (see note 21). Marketing provisions mainly consist of provisions for distribution, such as discounts, rebates and sales commissions, as well as promotion. The...

  • Page 131
    ... benefit plans are made at the end of each reporting period. Similar obligations include mainly long-term liabilities under a deferred compensation plan. The funds withheld are invested by the Group on behalf of the employees in certain securities, which are presented under other non-current assets...

  • Page 132
    ... 2001 respectively (see Shareholdings). These subsidiaries were mainly set up together with former independent distributors and licensees for the adidas brand. Salomon & Taylor Made Co., Ltd., Tokyo (Japan) is a public company, which has been listed on the Tokyo Stock Exchange since 1995. Minority...

  • Page 133
    ...by adidas-Salomon AG or by a wholly owned, directly or indirectly held subsidiary exercise their warrants or conversion rights. Acquisition of Own Shares By resolution of the Annual General Meeting held on May 8, 2002, the shareholders of adidasSalomon AG authorized the Company to acquire own shares...

  • Page 134
    ... OF adidas-Salomon AG â,¬ in thousands In 2002, the Group contracted a sale and leaseback transaction which resulted in an operating lease. In this context, a one-time profit of â,¬ 8 million was realized within selling, general and administrative expenses. Finance Leases The Group also leases...

  • Page 135
    ... Total 1,141 582 1,723 Dec. 31 2001 1,372 173 1,545 21 /// FINANCIAL INSTRUMENTS Management of Foreign Exchange Risk The Group is subject to currency exposure, primarily due to an imbalance of its global cash flows caused by the high share of product sourcing invoiced in US dollars, while sales...

  • Page 136
    ... as promotion contracts, advertising, retail support, events and other communication activities, however it does not include marketing overhead expenses. For the year 2002, Marketing Working Budget accounted for approximately 35% (2001: 35%) of the total operating expenses. Total depreciation and...

  • Page 137
    ... â,¬ in millions Year ending December 31 2002 2001 Wages and salaries Social security contributions Pension expense Personnel expenses 645 82 31 758 595 74 26 695 25 /// INCOME TAXES In general, adidas-Salomon AG and its German subsidiaries are subject to corporate and trade taxes. From January...

  • Page 138
    ... invested in international operations. The earnings could become subject to additional tax if they were remitted as dividends, or if foreign earnings were loaned to the subsidiary, or if the Group were to sell its shareholdings in the subsidiaries. The Group estimates that the distribution...

  • Page 139
    ... INFORMATION 27 /// SEGMENTAL INFORMATION The Group operates predominately in one industry segment, the design, wholesale and marketing of athletic and sports lifestyle products. The Group is currently managed by brands and on the basis of a regional structure. Certain functions of the Group...

  • Page 140
    ...581 179 18 7 Salomon 2001 714 313 43.8 63 679 226 38 7 TaylorMade-adidas Golf 2002 707 345 48.8 74 433 95 46 7 2001 545 281 51.5 63 316 58 16 6 Headquarter/ Consolidation 2002 Net sales third parties Gross profit In % of net sales Operating profit Assets Liabilities Capital expenditure Amortization...

  • Page 141
    SEGMENTAL INFORMATION BY REGION â,¬ in millions Europe 2002 Net sales Intersegment sales Net sales third parties Gross profit In % of net sales Operating profit Assets Liabilities Capital expenditure Amortization and depreciation excl. goodwill amortization 3,212 (12) 3,200 1,268 39.5 471 1,396 630 ...

  • Page 142
    ... Inventories Receivables and other current assets Property, plant and equipment Goodwill and other intangible assets Investments and other non-current assets Accounts payable and other liabilities Short-term borrowings Long-term bank borrowings Total acquisition cost Less: cash acquired Cash flow on...

  • Page 143
    ... years. Under the stock option plan adopted by the shareholders of adidas-Salomon AG on May 20, 1999 and amended by resolution of the Annual General Meeting on May 8, 2002, the Executive Board has been authorized to issue non-transferable stock options for up to 1,367,187 no-par-value bearer shares...

  • Page 144
    ...: EMPLOYEES Year ending December 31 2002 2001 Sales companies Sourcing/Production Global marketing/Research and development Central functions 8,935 3,198 1,512 816 14,461 8,324 3,689 1,100 727 13,840 Remuneration of the Supervisory Board and the Executive Board of adidas-Salomon AG REMUNERATION...

  • Page 145
    .... The total number of no-par-value shares thus amounts to 45,440,250. The new shares will carry dividend rights as of January 1, 2003. With effect from the same day, the stock capital of adidas-Salomon AG was increased by â,¬ 45,440 to a total of â,¬ 116,327,040. Trading of the new shares commenced...

  • Page 146
    ...directly 12 directly directly 5 12 directly 17 11 adidas Sarragan France S.a.r.l. 12 Salomon S.A. 13 Salomon IPF SAS 8) 10) 14 Cliché S.A.S. 15 erima France S.a.r.l. 16 Mavic S.A. 17 adidas International B.V. 18 adidas International Trading B.V. 19 adidas International Marketing B.V. (former adidas...

  • Page 147
    SHAREHOLDINGS OF adidas-Salomon AG As at December 31, 2002 Company and Domicile Currency...directly directly 39 12 38 12 37 17 17 directly 12 directly 12 17 12 17 47 directly directly directly 8 12 directly 12 directly directly directly 58 17 18 11 indirectly 11 11 indirectly directly directly directly...

  • Page 148
    ... America 68 adidas Salomon North America Inc. 3) 69 adidas America Inc. 3) 70 adidas Promotional Retail Operations Inc. 3) 71 adidas Sales Inc. 3)) 72 adidas Village Corporation 3) 73 adidas Interactive Inc. 3)) 74 Taylor Made Golf Co. Inc. 75 Salomon North America, Inc. 76 Salomon Design Center...

  • Page 149
    ... 100 Sub-group adidas UK Sub-group Ireland Sub-group USA 4) Sub-group adidas-Salomon International Sourcing 5) Sub-group India 6) Sub-group Mexico 7) Sub-group Salomon-TaylorMade UK 8) Seven companies have not been included in the consolidated financial statements of adidas-Salomon AG due to their...

  • Page 150
    ... USA instead of through an overseas exchange. Unsponsored ADRs are issued by a broker or depositary bank without the involvement of the company whose stock underlies the ADR. ATHLETIC SPECIALTY RETAILERS /// A major distribution channel for adidas products in terms of sales. These stores specialize...

  • Page 151
    ... zone. The first sale of stock by a private company to the public. INTEREST COVERAGE /// EQUITY RATIO /// INTEREST RATE CAPS /// FAIR VALUE /// FINANCIAL LEVERAGE /// FORWARD CONTRACT /// INTERNATIONAL FINANCIAL REPORTING INTERPRETATIONS COMMITTEE /// INVERTED CONE TECHNOLOGY /// IPO (INITIAL...

  • Page 152
    ... in salaries and pensions. Costs related to sponsorships of individual athletes, teams, federations and sporting events for the promotion of a company's brand(s). OPTION /// METALWOODS /// OWN-RETAIL ACTIVITIES /// mi adidas /// PRODUCT LICENSEES /// PROJECTED UNIT CREDIT METHOD /// MINORITY...

  • Page 153
    .... For adidas-Salomon, this includes consumers, retailers, distributors, licensees, supply chain business partners, shareholders, employees, international sports bodies, non-governmental organizations, the media, etc. The process of developing, producing and transporting products to customers. A ski...

  • Page 154
    adidas-Salomon SEGMENTAL INFORMATION: FIVE YEAR OVERVIEW â,¬ in millions 2002 BRANDS adidas Net sales Gross profit Operating profit Operating assets Salomon Net sales Gross profit Operating profit Operating assets TaylorMade-adidas Golf Net sales Gross profit Operating profit Operating assets 707 ...

  • Page 155
    adidas-Salomon SEGMENTAL INFORMATION: FIVE YEAR OVERVIEW â,¬ in millions 2002 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 Net...

  • Page 156
    adidas-Salomon SUMMARY OF KEY FINANCIAL DATA: OVERVIEW SINCE IPO 2002 P&L Data â,¬ in millions Net sales Gross profit Operating profit Royalty and commission income Financial result Income before taxes Income taxes Minority interests Net income 2) P&L Ratios Gross margin SG&A expenses as a ...

  • Page 157
    ... current assets Working capital Net total borrowings Shareholders' equity Balance Sheet Ratios Financial leverage Equity ratio Data Per Share â,¬ Basic earnings per share 2) Operating cash flow Dividend per share Number of outstanding shares at year-end (in thousands) Employees Number of employees...

  • Page 158
    [email protected] www.adidas-Salomon.com/en/investor/ adidas-Salomon is a member of DAI (German Share Institute), DIRK (German Investor Relations Association) and NIRI (National Investor Relations Institute, USA). This report is also available in German. CONCEPT AND DESIGN häfelinger+wagner design, munich

  • Page 159
    ... /// PRELIMINARY 2002 FULL YEAR RESULTS PRESS RELEASE 2002 FULL YEAR RESULTS PRESS AND ANALYST CONFERENCE PRESS RELEASE, CONFERENCE CALL AND WEBCAST FIRST QUARTER 2003 RESULTS PRESS RELEASE, CONFERENCE CALL AND WEBCAST ANNUAL GENERAL MEETING IN FÃœRTH, GERMANY WEBCAST DIVIDEND PAID* FIRST HALF 2003...

  • Page 160
    adidas-Salomon AG WORLD OF SPORTS /// 91074 HERZOGENAURACH /// GERMANY TEL: +49(0)9132 84-0 /// FAX: +49(0)9132 84-2241 www.adidas-Salomon.com