Adidas 2012 Annual Report Download

Download and view the complete annual report

Please find the complete 2012 Adidas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 282

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282

#2012-AD1DA5-G80UP-#1
adidas Group
At a glance
2012
adidas Group
Annual Repor t
2012

Table of contents

  • Page 1
    #2012-AD1DA5-G80UP-#1 At a glance adidas Group 2 0 1 2 adidas Group Annual Report 2 0 12

  • Page 2
    ... sales of Outlook 2013 Currency-neutral sales development: adidas Group increase at a mid- to high-single-digit rate Wholesale segment increase at a mid-single-digit rate Retail segment increase at a low-teens rate Other Businesses increase at a low- to mid-single-digit rate TaylorMade-adidas Golf...

  • Page 3
    ... by our passion for sports and performance, with dedication, commitment and team spirit, we continuously innovate to establish new benchmarks in everything we do. We learn from top athletes, we utilise the latest technologies and we work hard to always achieve the very best - so that, together with...

  • Page 4
    ...ve key categories: Football, Basketball, Running, Training and Outdoor. adidas Golf adidas Golf develops high-performance golf footwear and apparel for active, serious, athletic-minded golfers seeking products to elevate their game. FINANCIAL HIGHLIGHTS adidas Sport Style adidas Originals: adidas...

  • Page 5
    ... Equity ratio Net borrowings/EBITDA Financial leverage Return on equity Balance Sheet and Cash Flow Data (â,¬ in millions) Total assets Inventories Receivables and other current assets Working capital Net cash Shareholders' equity Capital expenditure Net cash generated from operating activities...

  • Page 6
    ... GROUP MANAGEMENT REPORT Group Strategy Global Sales Strategy Wholesale Strategy Retail Strategy eCommerce Strategy Global Brands Strategy adidas Strategy Reebok Strategy Other Businesses Strategy TaylorMade-adidas Golf Strategy Rockport Strategy Reebok-CCM Hockey Strategy Global Operations Research...

  • Page 7
    ...03 03.1 03.2 FINANCIAL REVIEW GROUP MANAGEMENT REPORT Internal Group Management System Group Business Performance Economic and Sector Development Income Statement Statement of Financial Position and Statement of Cash Flows Treasury Financial Statements and Management Report of adidas AG Disclosures...

  • Page 8
    4 2.1 9 5 K M P U R E EF FOR T --- 6 20 12 adidas Group / 2012 Annual Report

  • Page 9
    ... medallist of the Olympic Games in London and winner of the Virgin London Marathon in 2012, Wilson Kipsang proved it again. He is one of the best distance runners in the world. Running faster than everybody else is essential to succeed in a marathon. How will adidas Running help Wilson Kipsang and...

  • Page 10
    ... THAN STAND ARD In 2013, adidas presents probably one of the most revolutionary innovations in footwear - Energy Boost! The shoe features a new cushioning technology that provides the highest energy return to the athlete in the running industry. It combines the usually conï¬,icting performance bene...

  • Page 11
    LO N G ITUDIN A L SECTIO N O F T HE EN ER GY B O O ST R UN N ING S HO E --- 7 20 12 SO L E EL EMEN TS O F TH E EN ER GY B O O ST R UN N ING SH O E --- adidas Group / 2012 Annual Report

  • Page 12
    8 20 12 DESIG N SK ETC H ES O F TH E D R O SE 3.5 --- adidas Group / 2012 Annual Report

  • Page 13
    ...In 2008, he entered the NBA and was selected in his first season as Rookie of the Year. Through hard training and self-discipline, he was able to improve his skills. How will adidas Basketball support Derrick Rose and everybody who loves the court to improve their game in 2013? Pushing Boundaries.

  • Page 14
    D Rose 3.5 IMPROVEMENT EVERY DAY MORE PERFORMANCE REDUCED WEIGHT THROUGH COLOURWAYS 8 ENERGY RETURN THROUGH Designed and developed with Derrick Rose, the D Rose 3.5 offers improved performance, bolder style and more personal details than its predecessor, to deliver the best from the court to the...

  • Page 15
    D R O SE 3.5 B A SK ETB A L L SH O E --- 9 20 12 FOLLOWING TH E F IBONACCI SEQUENCE, T HE DES IGN OF TH E D ROS E 3.5 R E PRES ENTS H OW DERRICK ROSE'S SUCCESS CONTINUES TO GROW S TEADILY --- adidas Group / 2012 Annual Report 13 0 1 1 2 3 5 8

  • Page 16
    NO R M A LLY, I T TA KE S 25 LI T RES OF WAT ER TO COLOU R 1 SHIR T ...--- ...A D I DA S D R YDYE E LIMI N AT ES TH E NE E D FO R WAT E R A LTOGE T HER. --- 10 20 12 adidas Group / 2012 Annual Report

  • Page 17
    ...based Yeh Group, adidas has supported the development of a new technology - DryDye. This innovation eliminates the need for water in the dyeing process. It is part of adidas' vision to create more environmentally benign products and assume responsibility as a company to make the world a better place...

  • Page 18
    ... 2013, the DryDye Prime Tee is part of the sustainable DryDye product range. The freshrite antibacterial fabric finish enables athletes to stay fresh and comfortable, the ClimaLite technology ensures quick T-shirt drying. adidas succeeds in developing products which are both high-performance and...

  • Page 19
    C L IMA L ITE K EEP S AT HL E T E S D RY A N D C O MFO R TA B L E --- 11 20 12 adidas Group / 2012 Annual Report

  • Page 20
    A DIDA S O R IG IN A L S: SETTIN G TR EN DS SIN C E 1972 --- 12 20 12 adidas Group / 2012 Annual Report

  • Page 21
    ...adidas innovations have had as much impact on street style as they did on the track. This is especially true for the '90s. There are echoes of that era throughout the adidas Originals Core Collection. adidas Originals fuses sports authenticity and global street style, setting trends around the world...

  • Page 22
    ... in the '90s, the Torsion Allegra Lady running shoe is now back. The new, innovative version, the Torsion Allegra W, has the Torsion support bar on the sole of the shoe and an advanced upper made of synthetic leather. Characteristic of the '90s, the shoe features the iconic three stripes in a modern...

  • Page 23
    13 20 12 1994: TH E O R IG IN A L TO R SIO N A L L E G RA L ADY --- adidas Group / 2012 Annual Report

  • Page 24
    14 20 12 adidas Group / 2012 Annual Report

  • Page 25
    ... REEBOK CROSSFIT ATHLETE MORE FIT 2ND PLACE IN 2012 USA 9 7 7 POINTS Julie Foucher is one of the fittest women on earth. Placing second at the Reebok CrossFit Games in 2012, she confirmed her high level of fitness. For her CrossFit workouts, it is important to have high-performing shoes...

  • Page 26
    ... FLEXIBLE U LTR AL ITE MORE 2012 Reebok's RealFlex technology is all about natural movement and perfect for all kinds of training. Created with numerous individual, multi-directional nodes in the sole, the shoe is designed to give fitness athletes optimised underfoot feedback. The RealFlex Fusion...

  • Page 27
    R EA L FL EX FU S I O N T R 2.0: SO L E WITH FL E XI BL E NO D E S --- 15 20 12 adidas Group / 2012 Annual Report

  • Page 28
    16 20 12 adidas Group / 2012 Annual Report

  • Page 29
    ... Games twice in a row, defending his title as "Fittest Man on Earth" in 2012. Combining different fitness disciplines, CrossFit athletes such as Rich Froning Jr. are looking for apparel which guarantees great freedom of movement to be able to perform at their best. How will Reebok serve the world...

  • Page 30
    ... COMPRESSION Reebok's CrossFit Lite Long Sleeve is an antimicrobial compression top, featuring moisture-wicking PlayDry technology, heat-r eï¬,ecting fabric technology and rub-reducing ï¬,atlock stitching. This top fits like a second skin and provides natural wearing comfort to the fitness athlete...

  • Page 31
    R EEB O K DELTA C O L L ECTIO N : B E FIT FO R LI F E --- 17 20 12 adidas Group / 2012 Annual Report

  • Page 32
    BE N D T HE R ULE S WIT H R E E B OK YOGA -- - C OMFOR TA B LE YOGA MAT FOR E X E R CI SE S OF A LL KINDS --- 18 20 12 adidas Group / 2012 Annual Report

  • Page 33
    ... G M M Y A SOCIAL MEDIA REACH: TENS OF MILLIONS Y O G A Named the "Yoga Rebel" by the New York Times, yoga guru Tara Stiles reaches a global audience and brings a fresh take on a traditional sport. With Tara Stiles as global yoga ambassador, Reebok defines yoga as a sport in a completely new and...

  • Page 34
    ... by bold statement graphics and contemporary urban designs. Implicitly functional, it is complemented and adapted to women's bodies to provide a perfec t fit. The Yoga Pocket Tank is designed with a deep racer back for unrestricted back and shoulder motion. With the help of the Reebok yoga...

  • Page 35
    K EY YO GA Q UOT E FR O M TA R A STI L E S --- 19 20 12 YO GA CA P R I: B A MB O O J ER SEY FO R A S M O OT H F E E L --- adidas Group / 2012 Annual Report

  • Page 36
    CU STOMI SE D TO E V E R Y SW I N G: R 1 D R IV E R --- 20 20 12 adidas Group / 2012 Annual Report

  • Page 37
    ... help of industry-leading equipment tailored and customised to his every need, he went on to win the Hyundai Tournament of Champions by four strokes at the beginning of 2013. Like Dustin, every golfer strives to achieve their best on the golf course. How is TaylorMade continuing to support golfers...

  • Page 38
    ... weights. It offers twelve loft-sleeve setting positions to help golfers find the loft that delivers the launch conditions to promote maximum distance. Offering the largest scope of adjustability of any driver in the brand's history, the R1 provides the best fit for the widest range of players, from...

  • Page 39
    R1 DRIV ER : TH ICK-TH IN C R OWN TEC H N O LO GY SAVES VA LUA B L E WEIG H T --- 21 20 1.0 2.0 3.0 4.0 5.0 6.0 L ARGE SCOPE OF ADJUSTABILITY --- adidas Group / 2012 Annual Report 7.0 12

  • Page 40
    22 20 12 adidas Group / 2012 Annual Report

  • Page 41
    ... from weekday to weekend. Rockport shoes fuse contemporary style and engineered comfort. Every shoe has to deliver against this promise - this principle is at the heart of everything the brand does. But what exactly could make you look and feel great even after a long day in the of fice? Pushing...

  • Page 42
    ... OUT OF THIS W O R L D Lightness out of this world. truWALK zero are one of the lightest shoes the brand has ever made, without sacri ficing an ounce of comfort. Rockport has taken out every unnecessary element to engineer the airiest shoes imaginable. As light as it gets. Pushing Boundaries.

  • Page 43
    23 20 12 truWA L K zero SH O E SO L E: L IG H T A N D C O MFO R TA B L E --- adidas Group / 2012 Annual Report

  • Page 44
    24 20 12 adidas Group / 2012 Annual Report

  • Page 45
    ...a gold medal for Canada at the Spengler Cup. To deliver a perfect game and transcend their own limits, ice hockey players need equipment that enables them to play their game with the highest intensity and impact. How will Reebok-CCM Hockey keep driving the power and the action out on the ice in 2013...

  • Page 46
    ... EXPLOSIVE INCREASED TURNING RADIUS BY UP TO 10% SPEEDBLADE HOLDER The brand-new CCM RBZ skate is engineered to provide the most extreme foot speed in ice hockey. This skate enables the player's power to be enhanced by greater responsiveness and explosive moments. It features new custom-support...

  • Page 47
    HOR I Z ON TA L D E FLE CTION --- 25 20 12 L ESS TO R SIO N --- VER TICA L DEFL ECTIO N --- adidas Group / 2012 Annual Report

  • Page 48
    .... 2012 was once again a year characterised by pioneering innovations, creativity and remarkable success stories. The section dividers will give you a glimpse into some of our game-changing products and technologies which, together with our exceptional partnerships with some of the greatest athletes...

  • Page 49
    PUSHING BOUNDARIES 2012

  • Page 50
    ... Group and brand news. Working out 1,050 feet above the streets of NYC adizero adidas Golf presents Revolutionising the fit, feel and shape of adidas Golf footwear, the new adizero line has been specially built on the principle that you start with zero and add only what is essential to perform...

  • Page 51
    ... TO OUR SHAREHOLDERS 01.1 01.2 01.3 01.4 01.5 01.6 01.7 01.8 Operational and Sporting Highlights 2012 Interview with the CEO Executive Board Supervisory Board Supervisory Board Report Corporate Governance Report including the Declaration on Corporate Governance Compensation Report Our Share 30 34...

  • Page 52
    ...ensures long-term cost-effective financing. 27. The adidas Group 2011 Annual Report claims three significant awards: the launched in the USA. Through an integrated global marketing campaign, Reebok is reaffirming its heritage and reclaiming its position as an authentic classics brand. 29. adidas...

  • Page 53
    To Our Shareholders Operational and Sporting Highlights 2012 / 01.1 / Q1 02 03 07 01 05 06 04 31 20 12 08 09 10 12 11 13 14 Q2 adidas Group / 2012 Annual Report

  • Page 54
    ...03 24. The adidas Group 2011 Annual Report receives the prestigious "Best 20. The adidas NEO label announces Selena Gomez as its new global style icon and guest designer with a three-year partnership. Annual Report 2012" award granted by the German business magazine "manager magazin". / PICTURE 04...

  • Page 55
    To Our Shareholders Operational and Sporting Highlights 2012 / 01.1 / Q3 02 01 05 04 03 06 07 33 20 12 08 10 11 13 14 14 12 09 Q4 adidas Group / 2012 Annual Report

  • Page 56
    ... on driving long-term sustainable margin improvements, together with low levels of operating working capital as a percentage of sales, allowed the Group to finish 2012 with a healthy net cash position of â,¬ 448 million. As a result of this strong performance, Management is proposing a dividend to...

  • Page 57
    ... a net cash position of â,¬ 448 million, a fivefold increase compared to a year ago. This significant cash ï¬,ow generation once again underpins the trajectory and value we are unlocking with our Route 2015 strategic business plan. Finally, our long-standing and proven ability to tackle internal...

  • Page 58
    ...increased our net cash to â,¬ 448 million. Our cash ï¬,ow from operating activities was up 17%. This once again demonstrates the strength of our business model and puts us in a superb position to support and invest in the opportunities and growth initiatives of our Route 2015 strategic business plan...

  • Page 59
    ... consumer target group in China is maturing at a rapid pace, becoming increasingly discerning and sophisticated. They are looking for Additionally, we have deepened our already very close relationship with our retail partners, who now operate more than 7,500 points of sale across Greater China. By...

  • Page 60
    ... deeper into the adidas numbers, our business with our key high school kid relevant retail partners was up over 20% in 2012. As already outlined, for Route 2015, we are focused on quality growth, which is crucial to securing long-term, sustainable success for the adidas brand in this market. Through...

  • Page 61
    ... margin expansion. The adidas Group gross margin is forecasted to increase to a level between 48.0% and 48.5%. Over-proportionate growth in high-margin emerging markets and Retail will positively impact this development. Our operating margin will improve considerably in line with our previously...

  • Page 62
    ...T Global Operations Herbert Hainer was born in Dingolfing, Germany, in 1954. Following his business studies, he spent eight years with Procter & Gamble in various sales and marketing positions. Herbert Hainer joined adidas Germany in 1987 and has held numerous management positions within the Group...

  • Page 63
    ... named President of adidas North America, while maintaining his position as Head of Global Marketing. In 2006, he was named President of the adidas brand, and in 2010 he assumed responsibility for Global Brands. Erich Stamminger is married and lives in Nuremberg. adidas Group / 2012 Annual Report

  • Page 64
    To Our Shareholders Executive Board / 01.3 / 42 20 12 adidas Group / 2012 Annual Report

  • Page 65
    ... Shareholders Executive Board / 01.3 / 43 20 12 The adidas Group Executive Board in the adidas Research Lab at adidas Group Headquarters in Herzogenaurach, Germany. This is where innovation concepts are validated and tested, and also where the adidas innovation teams conduct sports research for...

  • Page 66
    ... Act (MitbestG) / Igor Landau, Sabine Bauer, Willi Schwerdtle, Heidi Thaler-Veh 1) Until the end of 2011. 2) Employee representative. 3) Since March 5, 2012; formerly Member of the Works Council Herzogenaurach, adidas AG. 4) Since November 14, 2012. adidas Group / 2012 Annual Report

  • Page 67
    ..., CeramTec GmbH, Plochingen, Germany 45 20 12 HANS RUPRECHT 2) Sales Director Customer Service Central Europe West, adidas AG HEIDI THALER-VEH 2) Member of the Central Works Council, adidas AG CHRISTIAN TOURRES Former Member of the Executive Board of adidas AG adidas Group / 2012 Annual Report

  • Page 68
    ... innovative products and marketing campaigns, the adidas Group was able to grow in all markets, achieving record sales as well as record operating cash ï¬,ow. The visibility of the adidas brand at the year's major sports events and the market share gains of TaylorMade-adidas Golf were key highlights...

  • Page 69
    ... for granting the 2012 Performance Bonus, together with the individual short-term targets, as well as the Performance Bonus target amount relevant for each Executive Board member, as proposed by the General Committee. As the LTIP 2009/2011 had expired at the end of adidas Group / 2012 Annual Report

  • Page 70
    ... disclosure to the Supervisory Board and would also require reporting to the Annual General Meeting. There are no direct advisory or other service relationships between the company and a member of the Supervisory Board. Further information on corporate governance at the adidas Group can be found in...

  • Page 71
    ... at all meetings and reported to the committee members in detail. The committee members examined the annual financial statements and the consolidated financial statements for 2011, including the combined management report for adidas AG and the Group, as well as the Executive Board's proposal...

  • Page 72
    ...terms and conditions proposed by the Executive Board. The chairmen of the committees reported to the Supervisory Board on the results of the meetings in detail and in a timely manner, in oral and sometimes written form. Examination of the adidas AG 2012 annual financial statements and consolidated...

  • Page 73
    ...Group by our shareholders, business partners, employees and the financial markets. The following report includes the Corporate Governance Report and the Declaration on Corporate Governance issued by the Executive Board and Supervisory Board. Dual board system As a globally operating public listed...

  • Page 74
    ... the work relationships of the employee representatives vis-Ã -vis the company. / Consider the age limit of, in general, 72 at the time of the election. In view of the amendments to the Code resolved upon in May 2012, at its meeting in February 2013, the Supervisory Board reviewed the objectives for...

  • Page 75
    ... Board IGOR L AND A U Chairman of the Supervisory Board HERBERT HAINER Chief Executive Officer The aforementioned Declaration of Compliance dated February 13, 2013 has been published on and can be downloaded at : // WWW.ADIDAS-GROUP.COM/CORPORATE_GOVERNANCE. adidas Group / 2012 Annual Report

  • Page 76
    ...on a global level. A key element of this goal is the introduction of uniform environmental management systems at company-owned locations, in compliance with ISO 14001 : // WWW.ADIDAS-GROUP.COM/SUSTAINABILITY. We strive to support the positive development of the regions in which our Group operates by...

  • Page 77
    ... follow the Annual General Meeting live and in full length online. At the end of 2012, the total number of shares or related financial instruments held by the members of the Executive Board of adidas AG amounted to less than 1% of the shares issued by the company. At the same time, the members of...

  • Page 78
    ... the LTIP 2012/2014, the Supervisory Board defined the following performance criteria with different weightings: / increase in net income attributable to shareholders / increase in operating free cash ï¬,ow / increase of adidas NEO label sales / development of the adidas AG share price. 56 20...

  • Page 79
    ... components were granted in US dollars. An exchange rate of 1.2862 $/â,¬ (annual average rate 2012) was used as the basis for calculation. 02 / Executive Board Total Compensation in 2011 (â,¬ in thousands) Non-performance-related compensation components Performance-related compensation component...

  • Page 80
    ...: / The pensions which our active Executive Board members receive upon reaching the age of 65 are based on a percentage of their individual pensionable income. This currently equals the individual fixed annual salary stated in the table. Starting from a base amount totalling 10% of the pensionable...

  • Page 81
    ...by the Annual General Meeting and regulated by § 18 of the Articles of Association of adidas AG. The compensation is linked to the size of the Group and to the responsibility and scope of activities of the Supervisory Board members. After the respective financial year, the members receive a fixed...

  • Page 82
    ... sheet improvements and the strong increase in the Group's net income attributable to shareholders excluding goodwill impairment losses in 2012, we intend to propose a 35% higher dividend compared to the prior year at our 2013 Annual General Meeting. International stock markets maintain positive...

  • Page 83
    ... 12 03 / The adidas AG share Number of shares outstanding 2012 average Number of shares outstanding At year-end 2012 1) Type of share Free ï¬,oat Initial Public Offering Share split Stock exchange Stock registration number (ISIN) Stock symbol 1) All shares carry full dividend rights. 209,216,186...

  • Page 84
    ... Group's Generation US 2015 growth plan and the strategy to sustain the success of TaylorMade-adidas Golf as well as increasing investors' understanding of the key pillars of Reebok's new fitness positioning. Benefiting from positive market feedback following the event, the adidas AG share gained...

  • Page 85
    ...leading global provider of ESG research and analysis / TABLE 03. adidas AG share historically outperforms benchmark indices The adidas Group is committed to continuously enhancing shareholder value. The long-term development of our share price reï¬,ects investor confidence and the growth potential...

  • Page 86
    ... rest of Europe excluding Germany amount to 35%, while 4% of institutional shareholders were identified in other regions of the world. adidas Group Management, which comprises current members of the Executive and Supervisory Boards, holds 2% in total / SEE CORPORATE GOVERNANCE REPORT INCLUDING THE...

  • Page 87
    ... to Annual General Meeting approval. 4) Based on number of shares outstanding at year-end. 5) Based on number of shares traded on all German stock exchanges. 6) As reported by Deutsche Börse AG. 65 20 12 Investor Relations and Media app increases availability of detailed adidas Group information...

  • Page 88
    ... 2012, and thus more EURO balls than ever before. adidas unveils DryDye, a new technology to eliminate the need for water in the dyeing process. The technology was developed in partnership with the Thailand-based Yeh Group. CO2 50% 50% instead of water less energy use less chemical input Reebok...

  • Page 89
    ... MANAGEMENT REPORT 02.1 02.2 02 Group Strategy Global Sales Strategy Wholesale Strategy Retail Strategy eCommerce Strategy Global Brands Strategy adidas Strategy Reebok Strategy Other Businesses Strategy TaylorMade-adidas Golf Strategy Rockport Strategy Reebok-CCM Hockey Strategy Global Operations...

  • Page 90
    ... managing working capital and optimising our capital structure remain key priorities for us. Furthermore, we are committed to increasing returns to shareholders with above-industry-average share price performance and dividends / SEE OUR SHARE, P. 60. Investments focused on highest-potential markets...

  • Page 91
    .... Brand Portfolio Build and manage a diverse brand portfolio with distinctive brands covering consumers from sport performance to sport lifestyle. Innovation Maintain a culture of continuous innovation through improvements of products, services and processes. adidas Group / 2012 Annual Report

  • Page 92
    ... revenue increase over the period / SEE GLOBAL BRANDS STRATEGY, P. 78. Areas within the adidas and Reebok brands that have been identified as key contributors to sustainable growth for the adidas Group include: / adidas Sport Performance: gaining sales and market share in the running and basketball...

  • Page 93
    ... Report - Our Group Group Strategy / 02.1 / 02 / adidas Group Route 2015 targets 1) (â,¬ in millions) 2010 2011 2012 Updated 2015 targets Original 2015 targets adidas Group net sales 2) Global Sales 2) Wholesale Retail thereof eCommerce Global Brands 2) adidas Reebok Other Businesses Operating...

  • Page 94
    ... to market developments and manage channel synergies by establishing best practices worldwide. Global Sales defines strategic priorities until 2015 The Global Sales function directs all local market organisations responsible for the distribution of the adidas and Reebok brands. The key priority...

  • Page 95
    ... Objectives Strategy Service Sales tools POS Space management excellence Operation Game plan Relationships Customer management excellence Team PEAK adidas Group / 2012 Annual Report 20 12 / Service - Deliver excellent sales service and world-class efficiency to our retailers. / Point...

  • Page 96
    ...retail support activities. Retail Strategy Our vision for Retail is to become a top retailer by delivering healthy, sustainable growth with outstanding return on investment. Retail plays an increasingly important role for the future of our Group and our brands, and is a key driver on our Route 2015...

  • Page 97
    ...employees and our business. The global strategic framework and guidelines for our own-retail activities are led by a central team. This team works closely with our market organisations to translate the strategy into actions and drive commercial performance of our adidas and Reebok retail operations...

  • Page 98
    ... Management Report - Our Group Global Sales Strategy / Retail Strategy / 02.2 / 04 / Retail strategic pillars To become a top retailer by delivering healthy, sustainable growth with outstanding return on investment Focus on the consumer Achieve operational excellence Exploit portfolio of brands...

  • Page 99
    Group Management Report - Our Group Global Sales Strategy / eCommerce Strategy / 02.2 / eCommerce Strategy The success of our eCommerce strategy rests on our ability to attract, convert and retain the consumer in a crowded marketplace. Therefore, we will activate our key unique selling proposition...

  • Page 100
    ... growth for the Group until 2015. Areas within adidas and Reebok that were identified as key contributors and game changers for the adidas Group include: / Gaining sales and market share in the key global categories running and basketball with adidas Sport Performance. / Expanding adidas Sport...

  • Page 101
    ...day business activities, but also provide the platform and framework for long-term market share and profitability improvements. While adidas and Reebok each have unique identities, heritages, technologies, designs and reputations, the strategic principles and methods for driving future sales growth...

  • Page 102
    ... products in the performance arena, it also facilitates the extension of the adidas and Reebok brands in the sports-inspired lifestyle market. Both adidas and Reebok follow a partnership strategy geared to best reï¬,ect their respective positioning in the market. adidas Group / 2012 Annual Report

  • Page 103
    ... through strategic partnerships adidas and Reebok have both successfully pursued design and co-branding strategies with complementary partners. For example, adidas has partnered with Yohji Yamamoto, Stella McCartney and Porsche Design, designing sports-inspired fashion, high-end functional ranges...

  • Page 104
    Group Management Report - Our Group Global Brands Strategy / adidas Strategy / 02.3 / adidas Strategy 03 / adidas Sport Performance: to make athletes better No other brand has a more distinguished history and stronger connection with sport than adidas. adidas is where the best meet the best, such...

  • Page 105
    ... Management Report - Our Group Global Brands Strategy / adidas Strategy / 02.3 / / Smarter: Through interactive products, such as miCoach, adidas helps users to train and perform smarter. The brand works with the best athletes and coaches worldwide to provide coaching and customisable training...

  • Page 106
    ... levels and through its commitment to improving their runs. adidas Running strives to increase its market share through performance innovations that provide the best running experience through fit, feel and transition. The brand engages the next-generation athlete through innovative products, such...

  • Page 107
    Group Management Report - Our Group Global Brands Strategy / adidas Strategy / 02.3 / Training: whatever the sport, success starts with training Training is the biggest Sport Performance category, supporting the preparation and recovery needs of athletes across all disciplines and all levels by ...

  • Page 108
    ... Management Report - Our Group Global Brands Strategy / adidas Strategy / 02.3 / adidas Sport Style: style your life Streetwear and lifestyle sports fashion represents a unique opportunity for sporting goods companies. What once started as a niche business, now makes up more than 28% of adidas...

  • Page 109
    ... Management Report - Our Group Global Brands Strategy / adidas Strategy / 02.3 / 10 / adidas Neo label Style icon and designer Selena Gomez 11 / Y-3 Y-3 X High shoe Porsche Design Sport: engineered luxury sportswear In 2012, adidas NEO enjoyed its most successful year to date. In Greater China...

  • Page 110
    ...Invest in controlled space activities. / Focus on five key categories and leverage Reebok Kids and Royal Flag across all of them. / / About Reebok Brand mission Brand values Brand attitude Key markets Focus areas 12 / adidas SLVR Snow Boot Heel Key strategic pillars 88 20 12 Net sales in 2012...

  • Page 111
    ... Management Report - Our Group Global Brands Strategy / Reebok Strategy / 02.3 / 14 / The House of Fitness Fit for Life Fitness Fitness Training Studio Classics Fitness Running Walking Kids Royal Flag House of Fitness established Understanding the multi-facets of fitness, from running...

  • Page 112
    ... been driven by key product takedowns as well as innovative and style-right kids-only products. For example, ZigTech in particular continues to be a major success for the Reebok Kids business. In 2013, one of the key launches in this category will be the ATV shoe. adidas Group / 2012 Annual Report

  • Page 113
    ...to not just live, but to "Live with Fire" / PICTURE 18. Accelerating investment in controlled space In line with our overall Group goal to increase controlled space, Reebok is developing a strategy to create a deeper engagement with the fitness community by going beyond what traditional retail has...

  • Page 114
    ... expand its market share. In this way, they contribute together to our Group's overall goal: to be the global leader in the sporting goods industry. TaylorMade-adidas Golf Strategy TaylorMade-adidas Golf's mission is to maintain its status as the world's leading golf company in terms of sales and...

  • Page 115
    ... accounts and assets TaylorMade-adidas Golf makes it a point to create compelling pointof-sale displays and communications designed to quickly and clearly educate the consumer on the product benefits of all four brands. Furthermore, TaylorMade-adidas Golf works closely with its key retail partners...

  • Page 116
    ... 2012, TaylorMade devoted additional resources to improve on the design and functionality of its accessories lines, which resulted in encouraging sales growth. A similar emphasis on developing better accessories will continue in 2013, with similar results expected. adidas Group / 2012 Annual Report

  • Page 117
    ... Golf R&D departments, with a key goal not only to share best practice but also to broaden Adams Golf's product architecture. Similarly, plans are also taking shape to turn Adams Golf into a global golf brand by leveraging TaylorMade-adidas Golf's established distribution channels around the world...

  • Page 118
    ... of engineered comfort where stability meets ï¬,exibility for all-day comfort. Key markets Focus areas 09 / Rockport "Challenge Gravity" campaign Key strategic pillars Globalise Women's Retail Operational capabilities Net sales in 2012 â,¬ 285 million adidas Group / 2012 Annual Report

  • Page 119
    ...40 stores in Russia/CIS, Japan, South Korea and other markets around the world. Rockport will continue to expand its retail footprint in key markets during 2013, to further strengthen the brand image of Rockport in the marketplace and to deliver profitable growth. adidas Group / 2012 Annual Report...

  • Page 120
    ...Reebok-CCM Hockey's strategy is to increase market share by leveraging its performance positioning and dedication to innovate for the leading athletes in the sport. Product innovation matches brand positioning The key priority for Reebok-CCM Hockey's innovation team is to design and market products...

  • Page 121
    ... with its high-performance positioning in the sport. Through a commitment to product innovation, Reebok-CCM Hockey's pricing strategy is to dominate the market in the premium price segments and to be a strong competitor within the mid-price segment of the market. adidas Group / 2012 Annual Report

  • Page 122
    ... operational backbone to support the Group's growth plans / / / / Consolidate legacy systems and distribution structures Build state-of-the-art systems, processes and distribution facilities Pool supply chain activities for multiple markets Integrate local sourcing activities into the global...

  • Page 123
    ... SEE INTERNAL GROUP MANAGEMENT SYSTEM, P. 124. IBP forms part of the Group's strategic business plan Route 2015 and aims at establishing a coherent end-to-end demand and supply planning process across finance, marketing and operations. As part of the product availability priority, Global Operations...

  • Page 124
    ... processes for adidas and Reebok footwear / SEE GLOBAL SALES STRATEGY, P. 72 / SEE GLOBAL BRANDS STRATEGY, P. 78. As part of the Group's Driving Route 2015 programme / SEE GROUP STRATEGY, P. 68, Global Operations expanded its responsibilities throughout 2012, supporting the push for increased...

  • Page 125
    ...were located in China. 1 1/ 2/ 3/ 96% 3% 1% Asia Americas Europe 1) Figures include adidas, Reebok and adidas Golf. 05 / 2012 2011 2010 2009 2008 Footwear production 1) (in million pairs) 244 245 219 171 221 1) Figures include adidas, Reebok and adidas Golf. adidas Group / 2012 Annual Report

  • Page 126
    Group Management Report - Our Group Global Operations / 02.5 / versus the prior year. Products were primarily sourced from factories in China (72%), Vietnam (17%), India (8%) and Indonesia (3%). The largest factory accounted for 39% of the total sourcing volume of the Rockport brand. 21 million, ...

  • Page 127
    6 Group Management Report - Our Group Research and Development / 02.6 / Research and Development Creating innovative products to meet the needs of professional and everyday athletes and consumers is a prerequisite to strengthening our market position in the sporting goods industry. In a rapidly ...

  • Page 128
    ... Main activities Major locations adidas The adidas innovation team is divided into groups that focus on performance footwear, apparel and hardware innovation, within which there are individual product focus categories. These reï¬,ect adidas' business needs with an emphasis on the five key Sport...

  • Page 129
    ... 2% of total Group employees. In 2013, we expect the number of R&D employees to remain stable. R&D expenses increase 12% Each year, we invest considerable resources into developing and commercialising new technologies as well as fresh design ideas, in order to offer the best experience for...

  • Page 130
    Group Management Report - Our Group Research and Development / 02.6 / Successful product launches across all major adidas categories In 2012, adidas sales were again driven by the latest product offerings, with products launched during the course of the year accounting for 78% of brand sales (2011...

  • Page 131
    ... ADIDAS GOLF STRATEGY, P. 92. / SEE TAYLORMADE- Rockport launches truWalkZero architecture Due to the different business model for the Rockport brand as a leather shoe company, the impact from new styles is significantly lower compared to our other brands. Products launched in 2012 accounted...

  • Page 132
    ... Digest Outdoor Porsche Design Running Running Running Footwear Golf Golf Golf Golf adidas adidas adidas adidas adidas Rockport TaylorMade TaylorMade TaylorMade Adams Golf adidas Porsche Design Sport Bounce S3 shoe Most Innovative Brand Award 2012 / Plus X Award adidas Group / 2012 Annual Report

  • Page 133
    ..., we bring to life our company's strategy and drive business results. Supporting the achievement of our Route 2015 targets In 2012, the adidas Group Human Resources department dedicated considerable time to supporting the strategic business plan Route 2015, facilitating organisational and cultural...

  • Page 134
    ...management positions within our Group. At year-end 2012, 12 employees were participating in the BMP globally (2011: 10). The Functional Trainee Programme (FTP) is an 18-month programme providing graduates with an international background and excellent educational credentials the opportunity to start...

  • Page 135
    ...at least once a year. Building on defined development goals, we offer and support our employees with targeted development activities both on and off the job. To further drive a high-performance culture within the adidas Group, we will roll out a new performance management tool in 2013. The new tool...

  • Page 136
    ... women in management to between 32% and 35% by 2015 (currently: 28% worldwide). To reach this goal, we have increased the proportion of women in our leadership development programmes to over 35% in order to support our female employees to take leadership positions. The Supervisory Board of adidas AG...

  • Page 137
    ... talent. 04 / Key employee statistics 2012 2011 Total number of employees Total employees (in %) Male Female Management positions (in %) Male Female Average age of employees (in years) 1) Average length of service (in years) Annual training hours by employee (in hours) 1) At year-end. 46,306 50...

  • Page 138
    ... Asian Markets Latin America Greater China 3 2012 2 1) At year-end. 08 / Number of employees 1) 2012 2011 Employees 2) Full-time equivalents 3) Employees 2) Full-time equivalents 3) Own retail Sales Logistics Marketing Central administration Production Research & development IT Total 24...

  • Page 139
    ... Standards help us select manufacturing partners and serve as guiding principles in the early identification and treatment of potential issues of concern at our suppliers' sites. Careful supplier selection To improve working conditions throughout our supply chain, Global Operations works closely...

  • Page 140
    ... manage environmental issues as an integral part of our daily operations, positively contributing to the adidas Group's overall business performance. More details on our Environmental Strategy can be found on our website at : // WWW.ADIDAS-GROUP.COM/SUSTAINABILITY. adidas Group / 2012 Annual Report

  • Page 141
    ...the adidas brand's sustainable product programme "Better Place", which works with different product creation teams, as well as cross-functional teams such as Sourcing, Corporate Communication and Global Operations to create a sustainable product offering within the adidas Sport Performance and Sport...

  • Page 142
    ... see sizeable business opportunities for our Group in the area of sustainable product concepts / SEE RISK AND OPPORTUNITY REPORT, P. 164, and have already planned increased growth in the sustainable product segment as well as a rise in consumer engagement for 2013. adidas Group / 2012 Annual Report

  • Page 143
    ... Jones Sustainability Indexes) DJSI EUROPE FTSE4Good Europe Index ASPI Eurozone Index Ethibel Sustainability Index Excellence Europe ECPI Euro Ethical Equity ECPI EMU Ethical Equity STOXX Global ESG Leaders 121 20 12 For more information / SEE OUR SHARE, P. 60. adidas Group / 2012 Annual Report

  • Page 144
    ...e r 9, 2 0 12 10 years of trendsetting and cutting-edge design. "Innovative products with a sales volume of just 5% have a positive inï¬,uence on the remaining 95%." Adi Dassler 9 Ã- industry leader in sustainability issues For the 13th consecutive time, adidas AG is selected to join the Dow Jones...

  • Page 145
    03 FINANCIAL REVIEW GROUP MANAGEMENT REPORT 03.1 03.2 Internal Group Management System Group Business Performance Economic and Sector Development Income Statement Statement of Financial Position and Statement of Cash Flows Treasury Financial Statements and Management Report of adidas AG Disclosures...

  • Page 146
    ... and digital media) on key global brand initiatives and focusing our promotion spend on well-selected partnerships with top events, leagues, clubs and athletes. 01 / Operating cash ï¬,ow components Operating profit Change in operating working capital Net investments 1) Operating cash ï¬,ow...

  • Page 147
    ... a certain sports category, strengthening our technology portfolio or addressing new consumer segments. The strategies of any potential acquisition candidate must correspond with the Group's strategic direction. Maximising return on invested capital above the cost of capital in the long term is...

  • Page 148
    ... assets 126 20 12 Net borrowings/Net cash = Short-term borrowings + long-term borrowings - cash - short-term financial assets 1) Excluding acquisitions and finance leases. processes and timelines of major business functions such as marketing, sales and operations at a market and global level...

  • Page 149
    ... our product and 04 / New best practice planning process Management Business Review Commercial Executive Team Reconciliation process led by Group Finance Integrated KPIs + Financials Feedback results Operations Review Sales Review All channels All markets Marketing Review channel mix...

  • Page 150
    ... of double-digit growth in Retail as well as in Other Businesses. In euro terms, adidas Group revenues grew 12% to â,¬ 14.883 billion from â,¬ 13.322 billion in 2011. The Group's gross margin increased 0.2 percentage points to 47.7% (2011: 47.5%), as the positive impact from product price increases...

  • Page 151
    ... Games and the UEFA EURO 2012 hosted by Poland and Ukraine, contributed to sporting goods sales and in particular helped support the industry in many European markets. From a category perspective, basketball posted the strongest growth rate in the industry, with both performance and lifestyle...

  • Page 152
    ... 8.1137 1) Spot rates at quarter-end. 06 / Oil price development 1) (in US $ per barrel) | Jan. 1, 2011 Dec. 31, 2012 | 120 100 80 International brands drive Asian sporting goods industry expansion Strong wage growth and consumer spending supported increases in Asia's sporting goods industry...

  • Page 153
    ... growth as well as new store openings in line with the Group's retail expansion. Revenues in Other Businesses were up 17% on a currency-neutral basis, mainly driven by a strong doubledigit sales increase at TaylorMade-adidas Golf. Currency translation effects had a positive impact on segmental sales...

  • Page 154
    Group Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / 11 / Net sales by region (â,¬ in millions) 2012 2011 1) Change Change (currency-neutral) Western Europe European Emerging Markets North America Greater China Other Asian Markets Latin America Total ...

  • Page 155
    ... a result of the expansion of the Group's own-retail activities as well as higher marketing expenditure / SEE NOTE 31, P. 229. Other operating expenses as a percentage of sales decreased 0.5 percentage points to 41.3% in 2012 from 41.8% in 2011 / DIAGRAM 18. adidas Group / 2012 Annual Report

  • Page 156
    Group Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / Sales working budget decreases as a percentage of sales Sales working budget consists of expenses to support the Group's sell-through development. Expenditures relate to advertising and promotion ...

  • Page 157
    ... prior year level of 46,824. Increased efficiencies in the Group's own-retail store operations as well as reorganisation initiatives at Reebok were the main drivers of this development. On a full-time equivalent basis, the number of employees also decreased 1% to 40,168 at the end of 2012 (2011: 40...

  • Page 158
    Group Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / 27 / 2012 2) 2011 2010 2009 2008 Income before taxes 1) (â,¬ in millions) 1,116 869 806 358 904 32 / Diluted earnings per share by quarter 1) (in â,¬) 1.38 0.79 1.64 (0.03) Q1 2012 Q2 2012 Q3 2012...

  • Page 159
    ... / Structure of statement of financial position 1) (in % of total assets) 2012 2011 2) Assets (â,¬ in millions) Cash and cash equivalents Accounts receivable Inventories Fixed assets Other assets â- 2012 â- 2011 1) For absolute figures see adidas AG Consolidated Statement of Financial Position...

  • Page 160
    Group Management Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / 35 / 2012 2011 2010 2009 2008 Total assets 1) (â,¬ in millions) 11,651 11,237 10,618 8,875 9,533 Total assets increase 4% At the end of December 2012, ...

  • Page 161
    Group Management Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / Other current assets up 4% Other current assets increased 4% to â,¬ 489 million at the end of December 2012 from â,¬ 469 million in 2011, as a result of ...

  • Page 162
    ...Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / Shareholders' equity grows 3% Shareholders' equity increased 3% to â,¬ 5.304 billion at the end of December 2012 versus â,¬ 5.137 billion in 2011 / DIAGRAM 39. The net income...

  • Page 163
    Group Management Report - Financial Review Group Business Performance / Treasury / 03.2 / Net cash position of â,¬ 448 million Net cash at December 31, 2012 amounted to â,¬ 448 million, compared to net cash of â,¬ 90 million at the end of December 2011, reï¬,ecting an improvement of â,¬ 358 ...

  • Page 164
    ...total short-term bilateral credit lines, respectively (2011: 27% and 73%) / DIAGRAM 45. Total â- 2012 â- 2011 46 / Currency split of gross borrowings (â,¬ in millions) 2012 2011 EUR USD All others Total â- 2012 â- 2011 1,004 424 59 1,487 721 444 115 1,280 adidas Group / 2012 Annual Report

  • Page 165
    ... 2017 by use of the effective interest method. The total amount of bonds outstanding at the end of 2012 was â,¬ 948 million (2011: â,¬ 499 million). As in the prior year, no commercial paper was outstanding at the end of 2012. 2012 2011 2010 2009 2008 143 49 / Net cash/(net borrowings) by quarter...

  • Page 166
    ... EVENTS AND OUTLOOK, P. 157. Net cash 1) Rounding differences may arise in totals. 52 / 2012 2011 2010 2009 2008 Financial leverage (in %) (8.5) (1.7) 4.8 24.3 64.6 144 12 Effective currency management a key priority As a globally operating company, the Group is exposed to currency risks...

  • Page 167
    ... functions such as Global Marketing, Group Treasury, Taxes, Legal and Finance, and it also administers the shareholdings of the company. Income Statement 54 / Statement of income in accordance with HGB (Condensed) (â,¬ in millions) 2012 2011 Net sales Total output Other operating income Cost...

  • Page 168
    ... Review Group Business Performance / Financial Statements and Management Report of adidas AG / 03.2 / Other operating income up 1% In 2012, other operating income of adidas AG increased 1% to â,¬ 1.270 billion (2011: â,¬ 1.254 billion). This was primarily due to higher income derived from services...

  • Page 169
    ... from operating activities was mainly a result of the net income of â,¬ 504 million generated during the period. Net cash outï¬,ow from investment activities was â,¬ 128 million (2011: â,¬ 132 million). This is largely attributable to capital expenditure for tangible and intangible fixed assets of...

  • Page 170
    ...Contingent Capital / Based on the resolution by the Annual General Meeting of May 6, 2010, the Executive Board is authorised, subject to Supervisory Board approval, to issue bonds with warrants and/or convertible bonds by the company or affiliated companies once or several times in the total amount...

  • Page 171
    ... by the Annual General Meeting on May 6, 2010, the Executive Board is furthermore authorised to conduct the share buyback also by using equity derivatives which are arranged with a financial institution in close conformity with market conditions. adidas AG may acquire call options issued for...

  • Page 172
    ... Management Report - Financial Review Business Performance by Segment / Wholesale Business Performance / 03.3 / Business Performance by Segment The adidas Group has divided its operating activities into Wholesale, Retail and Other Businesses. The Wholesale segment comprises the adidas and Reebok...

  • Page 173
    ... business into the Reebok-CCM Hockey segment negatively contributed to the sales development in North America. Currency translation effects had a positive impact on revenues in euro terms. Reebok sales were down 25% to â,¬ 1.109 billion (2011: â,¬ 1.476 billion). adidas Group / 2012 Annual Report...

  • Page 174
    ...-single-digit rate. Currency translation effects had a positive impact on regional sales in euro terms / TABLE 09. 152 20 12 Retail development by brand In 2012, adidas Group Retail sales increased at a double-digit rate at both adidas and Reebok. Currency-neutral adidas Sport Performance revenues...

  • Page 175
    Group Management Report - Financial Review Business Performance by Segment / Retail Business Performance / 03.3 / rate, respectively. Comparable store sales for Reebok were up 7% on a currency-neutral basis, mainly due to double-digit growth in training and running. Classics was also up at a ...

  • Page 176
    ... increased at strong double-digit rates at both adidas and Reebok. Currency translation effects had a positive impact on sales in euro terms. eCommerce revenues grew 78% to â,¬ 158 million from â,¬ 89 million in 2011. 15 / Retail number of stores 16 / 2012 2011 2012 2011 Change Other Businesses...

  • Page 177
    ...Other Businesses development by region Currency-neutral sales of Other Businesses increased at a doubledigit rate in all regions. Revenues in Western Europe were up 16% on a currency-neutral basis due to double-digit sales growth at Other Centrally Managed Brands and TaylorMade-adidas Golf. Sales at...

  • Page 178
    ...first-time consolidation of Five Ten in the fourth quarter of 2011 as well as growth at Y-3. Currency translation effects positively impacted sales in euro terms. Revenues in Other Centrally Managed Brands increased 63% to â,¬ 104 million (2011: â,¬ 64 million). 20 / Other Businesses net sales by...

  • Page 179
    ... in 2013. We forecast adidas Group sales to increase at a mid-single-digit rate on a currency-neutral basis, with growth expected in all segments. Group gross margin is forecasted to increase to a level between 48.0% and 48.5%, primarily as a result of positive regional and channel mix effects, as...

  • Page 180
    ... labour market and relatively robust consumer spending all forecasted to support economic activity. However, further policy intervention as the region's governments seek to balance growth against significant inï¬,ationary pressures may impact this development. adidas Group / 2012 Annual Report

  • Page 181
    ... supported by order backlog development as well as positive retailer and trade show feedback. Currency-neutral adidas Sport Performance sales are forecasted to increase at a low-singledigit rate, driven by growth in key categories such as running, training and basketball. adidas Sport Style revenues...

  • Page 182
    ... In 2013, the adidas Group gross margin is forecasted to increase to a level between 48.0% and 48.5% (2012: 47.7%). Improvements are expected in all segments. Group gross margin will benefit from positive regional and channel mix effects, as growth rates in high-margin emerging markets and Retail...

  • Page 183
    ... 28.0% and 28.5% and thus more favourable compared to the prior year tax rate of 29.3% excluding goodwill impairment losses. 02 / Capital expenditure by segment 3 4 2013 2 1 1/ 2/ 3/ 4/ 50% 30% 15% 5% HQ/Consolidation Retail Wholesale Other Businesses adidas Group / 2012 Annual Report

  • Page 184
    ... business plan aspirations, we project adidas Group sales and net income to increase, and we also expect further improvements in operating margin. Further details of our Route 2015 strategic goals and initiatives for our segments and brands are outlined in the Group Strategy section of this Annual...

  • Page 185
    Group Management Report - Financial Review Subsequent Events and Outlook / 03.4 / 03 / Product Major 2013 product launches Brand SLVR Primeknit shoe Y-3 10-year anniversary collection Originals Torsion Allegra running shoe adidas NEO Selena Gomez collection Porsche Design Sport Bounce S3 running...

  • Page 186
    ... of events) that can positively impact the Group's business objectives or financial goals. 01 / adidas Group risk and opportunity management system Supervisory and Executive Boards Group Risk Management Risk Management Policy & Methodology/Support Monitoring & Reporting 164 20 12 In this...

  • Page 187
    ... the macroeconomic environment, developments in the sporting goods industry, as well as internal processes, to identify risks and opportunities as early as possible. The Risk Owners (i.e. all direct reports to the adidas AG Executive Board and the managing directors of all our markets) have primary...

  • Page 188
    ... developments, but also the adequacy and effectiveness of the current risk handling strategy on an ongoing basis. Regular risk reporting consists of a two-step reporting stream supported and facilitated by a globally used Group-wide IT solution that was implemented in 2011. Firstly, on a quarterly...

  • Page 189
    ...related to media and stakeholder activities Customer consolidation/private label risks Competition risks Risks related to risk and control environment Consumer demand risks Operational risks Own-retail risks Logistics risks Marketing risks Customer relationship risks Sales and pricing risks Supplier...

  • Page 190
    ... to negative developments in key sales markets such as Russia/CIS, China or North America as well as our important sourcing countries. Therefore, we regard the potential impact of these risks as significant and the likelihood of materialising as possible. adidas Group / 2012 Annual Report

  • Page 191
    ... mission statements, values and goals for all our brands / SEE GLOBAL BRANDS STRATEGY, P. 78 / SEE OTHER BUSINESSES STRATEGY, P. 92. These form the foundation of our product and brand communication strategies. Furthermore, we continue to invest significant marketing resources to build brand equity...

  • Page 192
    .... Underperforming stores are reorganised, remodelled or closed, as appropriate. Our increased focus on improving our sophistication as a retailer by investing in management expertise, employee development as well as in IT systems remains a key priority for 2013 / SEE GLOBAL SALES STRATEGY, P. 72...

  • Page 193
    ...conversion, sell-out and sell-through performance and adjust prices where required. In addition, our continuous investment in brand-building and marketing helps us drive our business at various price points and supports a premium positioning. Furthermore, we work closely with our retail customers to...

  • Page 194
    ...) and contingency plans to quickly recover business activities in order to minimise potential negative effects. IT risks Key business processes, including product marketing, order management, warehouse management, invoice processing, customer support and financial reporting, are all dependent...

  • Page 195
    ...re-engineering our products and selectively increasing prices where possible. In addition, the Profitability Management department is mandated with driving strategic sourcing initiatives to ensure competitiveness of our supply chain in light of increasing input costs / SEE GLOBAL OPERATIONS, P. 100...

  • Page 196
    ...pro-actively manage such risks, we constantly seek expert legal advice and provide subject matter training to our employees. In addition, our internal Legal department advises the marketing departments to ensure appropriate and compliant brand communication. Furthermore, we work closely with customs...

  • Page 197
    ...interest rate hedges, and invests cash, with major banks of a high credit standing throughout the world. adidas Group companies are authorised to Product quality risks The adidas Group faces a risk of selling defective products, which may result in injury to consumers and/or brand and product image...

  • Page 198
    ...balance sheet date. In 2012, we continued to improve our financial position substantially as we ended the year with net cash of â,¬ 448 million (2011: â,¬ 90 million). Thus the ratio of net borrowings over EBITDA improved to -0.3 times at year-end, which is well in line with the Group's medium-term...

  • Page 199
    ... foreign exchange rates to determine the effects on net income and equity. The analysis was performed on the same basis for both 2011 and 2012. Based on this analysis, a 10% increase in the euro versus the US dollar at December 31, 2012 would have led to a â,¬ 13 million decrease in net income. The...

  • Page 200
    ... and was performed on the same basis for both 2011 and 2012. A 100 basis point increase in interest rates at December 31, 2012 would have increased shareholders' equity by â,¬ 0.00 million (2011: increase by â,¬ 0.00 million) and decreased net income by â,¬ 0.00 million (2011: decrease by â,¬ 0.07...

  • Page 201
    ... important role in our growth strategy and where our brands are already well positioned. This could give an additional boost to the Group's sales performance. Also, we expect sports participation rates to increase over time, with increasing leisure time, investment in infrastructure and a broadening...

  • Page 202
    ... market is one of the most attractive segments in the sporting goods industry. The adidas Group is therefore investing in developing women-specific product offerings in both performance and lifestyle that emphasise female individuality, authenticity and style. adidas Group / 2012 Annual Report

  • Page 203
    ... and development, designers in the fashion industry, other brands or non-traditional sporting goods retailers. These partnerships have generated multiple new growth avenues for the Group, as we have acquired product or process know-how and gained access to new distribution channels or markets. For...

  • Page 204
    ... and brand loyalty. The adidas Group constantly monitors the latest developments and trends in communication technologies. The emergence of social media and social networks is one such example which is helping our brands increase their consumer reach. In this regard, we are investing considerable...

  • Page 205
    ... reported by different business units and functions through the quarterly risk and opportunity assessment process. Taking into account the occurrence likelihood and the potential financial impact of the risks explained within this report, the strong balance sheet as well as the current business...

  • Page 206
    ...the biggest iron innovations to date is announced by TaylorMade. A remarkable new technology that promotes high-launching, long, straight and quick-stopping performance for golfers of all abilities. adidas' contribution to make London 2012 the first truly sustainable Olympic Games: 70,000 uniforms...

  • Page 207
    ... Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes Notes to the Consolidated Statement of Financial Position Notes to the Consolidated Income Statement Notes - Additional Information Statement of Movements of Intangible and Tangible Assets Shareholdings...

  • Page 208
    ...nancial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group Management Report, which has been combined with the Management Report of adidas AG, includes a fair review of the development and performance of the business...

  • Page 209
    ... prepared by adidas AG, Herzogenaurach, comprising the statement of financial position, income statement, statement of comprehensive income, statement of changes in equity, statement of cash ï¬,ows and the notes, together with the management report of the Company and the Group for the business year...

  • Page 210
    ... 04.3 / Consolidated Statement of Financial Position .. / adidas AG Consolidated Statement of Financial Position (IFRS) (â,¬ in millions) Note Dec. 31, 2012 Dec. 31, 2011 1) Change in % Jan. 1, 2011 1) ASSETS Cash and cash equivalents Short-term financial assets Accounts receivable Other current...

  • Page 211
    .../ adidas AG Consolidated Statement of Financial Position (IFRS) (â,¬ in millions) Note Dec. 31, 2012 Dec. 31, 2011 1) Change in % Jan. 1, 2011 1) LIABILITIES AND EQUITY Short-term borrowings Accounts payable Other current financial liabilities Income taxes Other current provisions Current accrued...

  • Page 212
    4 Consolidated Financial Statements Consolidated Income Statement / 04.4 / Consolidated Income Statement .. / adidas AG Consolidated Income Statement (IFRS) (â,¬ in millions) Note Year ending Dec. 31, 2012 Year ending Dec. 31, 2011 1) Change Net sales Cost of sales Gross profit (% of net sales...

  • Page 213
    ... / adidas AG Consolidated Statement of Comprehensive Income (IFRS) (â,¬ in millions) Note Year ending Dec. 31, 2012 Year ending Dec. 31, 2011 1) Net income after taxes Net loss/gain on cash ï¬,ow hedges, net of tax Actuarial loss of defined benefit plans (IAS 19), net of tax Asset ceiling effect...

  • Page 214
    ... .. / adidas AG Consolidated Statement of Changes in Equity (IFRS) (â,¬ in millions) Note Share capital Capital reserve Balance at December 31, 2010 Adjustments according to IAS 8 Balance at January 1, 2011 2) Net income recognised directly in equity Net income Total comprehensive income Dividend...

  • Page 215
    Consolidated Financial Statements Consolidated Statement of Changes in Equity / 04.6 / Cumulative translation adjustments Hedging reserves Other reserves 1) Retained earnings Total shareholders' equity Non-controlling interests Total equity...5,304 (13) 5,291 adidas Group / 2012 Annual Report

  • Page 216
    ... of short-term financial assets Proceeds from sale/purchase of investments and other long-term assets Interest received Net cash used in investing activities Financing activities: Repayments of long-term borrowings Proceeds from issue of a convertible bond Dividend paid to shareholders of adidas AG...

  • Page 217
    ... "Group") design, develop, produce and market - increasingly through own-retail activities - a broad range of athletic and sports lifestyle products. The operating activities of the adidas Group are divided into six operating segments: Wholesale, Retail, TaylorMade-adidas Golf, Rockport, Reebok-CCM...

  • Page 218
    ... financial assets, derivative financial instruments, plan assets and receivables, which are measured at fair value. The consolidated financial statements are presented in euros (â,¬) and all values are rounded to the nearest million (â,¬ in millions). 196 20 12 adidas Group / 2012 Annual Report

  • Page 219
    ..., neither fair value adjustments of assets and liabilities nor gains or losses are recognised. Any difference between the cost for such an additional investment and the carrying amount of the net assets at the acquisition date is directly recorded in shareholders' equity. The financial effects of...

  • Page 220
    ... at the balance sheet date. Subsequently, these are measured at amortised cost using the "effective interest method". Required allowances, if necessary, are determined on the basis of individual risk assessments, and on the ageing structure of receivables past due. adidas Group / 2012 Annual Report

  • Page 221
    ... non-current assets and liabilities expected to be recovered principally through sale rather than through continuing use. These are measured at the lower of their carrying amount and fair value less costs to sell. Assets classified as held for sale are not depreciated on a straight-line basis...

  • Page 222
    ...'s major competitors. The discount rate used is an after-tax rate and reï¬,ects the specific equity and country risk. The applied discount rate depends on the respective intangible asset being valued and ranges between 6.5% and 8.4% (2011: between 6.5% and 8.1%). adidas Group / 2012 Annual Report

  • Page 223
    ... recognition criteria of IAS 38 "Intangible Assets". The Group spent â,¬ 128 million and â,¬ 115 million on product research and development for the years ending December 31, 2012 and 2011, respectively. Financial assets All purchases and sales of financial assets are recognised on the trade date...

  • Page 224
    ...ficant media buying costs are expensed over the intended duration of the broadcast. Promotional expenses that involve payments, including one-time up-front payments for promotional contracts, are expensed on a straight-line basis over the term of the agreement. adidas Group / 2012 Annual Report

  • Page 225
    ... derivatives / SEE NOTE 29 as well as deferred taxes / SEE NOTE 34. Judgements have, for instance, been used in classifying leasing arrangements as well as in determining valuation methods for intangible assets. adidas Group / 2012 Annual Report 20 12 Estimation uncertainties and judgements 203

  • Page 226
    ... of the adidas AG Opening Consolidated Statement of Financial Position (IFRS) as at January 1, 2011 (â,¬ in millions) Dec. 31, 2010 (as reported) Adjustments IAS 8 Opening balance Jan. 1, 2011 Cash and cash equivalents Short-term financial assets Accounts receivable Other current financial assets...

  • Page 227
    ... adidas AG Consolidated Income Statement (IFRS) for the year ending December 31, 2011 (â,¬ in millions) Year ending Dec. 31, 2011 (as reported) Adjustments IAS 8 Year ending Dec. 31, 2011 (restated) Net sales Cost of sales Gross profit (% of net sales) Royalty and commission income Other operating...

  • Page 228
    ... the adidas AG Consolidated Statement of Financial Position (IFRS) as at December 31, 2011 (â,¬ in millions) Dec. 31, 2011 (as reported) Adjustments IAS 8 Dec. 31, 2011 (restated) Cash and cash equivalents Short-term financial assets Accounts receivable Other current financial assets Inventories...

  • Page 229
    ... other business units net of cash acquired Purchase of short-term financial assets Purchase of investments and other long-term assets Interest received Net cash used in investing activities Financing activities: Repayments of long-term borrowings Dividend paid to shareholders of adidas AG Dividend...

  • Page 230
    ... consolidated balance sheet as at January 1, 2011. e) Deferred tax assets Deferred tax assets of â,¬ 7 million and â,¬ 9 million for the years ending December 31, 2010 and 2011, respectively, were recognised by Reebok India. Deducting the overstated sales and income in the business plans established...

  • Page 231
    ... its market position within the golf industry. The entire business of Adams Golf was purchased for a purchase price of US $ 89 million in cash. The acquisition had the following effect on the Group's assets and liabilities, based on a preliminary purchase price allocation: Balance sheet items...

  • Page 232
    ... effect on the Group's assets and liabilities, based on a purchase price allocation: Net assets of Stone Age Equipment, Inc. including subsidiaries at the acquisition date (â,¬ in millions) Pre-acquisition carrying amounts Fair value adjustments Recognised values on acquisition Accounts receivable...

  • Page 233
    ... in the fair value are recognised in the income statement as they occur. The majority of short-term financial assets are marketable securities relating to structured deposits. 1) Restated according to IAS 8, see Note 03. With respect to accounts receivable as at the balance sheet date past due...

  • Page 234
    ... in Europe, Asia, North America and Latin America. The carrying amount of inventories which is measured at fair value less costs to sell amounts to â,¬ 177 million and â,¬ 143 million (restated) as at December 31, 2012 and 2011, respectively / SEE NOTE 02. adidas Group / 2012 Annual Report

  • Page 235
    ...increase in construction in progress mainly relates to the construction of a new warehouse facility in Germany. For details see Attachment I to the consolidated financial statements / SEE STATEMENT OF MOVEMENTS OF INTANGIBLE AND TANGIBLE ASSETS, P. 238. 213 20 12 adidas Group / 2012 Annual Report

  • Page 236
    ...use of the acquired brand names. The reported other trademarks mainly relate to the brand names Ashworth, Adams Golf and Five Ten. The increase of â,¬ 10 million compared to 2011 is a result of the acquisition of Adams Golf, effective June 1, 2012 / SEE NOTE 04. The Group tests at least on an annual...

  • Page 237
    ... active market. There is no intention to sell these shares. Additionally, long-term financial assets include investments which are mainly invested in insurance products and are measured at fair value, as well as other financial assets. 17 Other non-current assets Other non-current assets consist...

  • Page 238
    ... trading days, the share price of adidas AG exceeds the current conversion price of â,¬ 83.46 by at least 30%. According to IAS 32 "Financial Instruments: Presentation", the conversion right represented in the convertible bond constitutes a financial instrument which is covered in the capital...

  • Page 239
    ... customer claims with regard to the return of products sold by the Group. The amount of the provision follows the historical development of returns, allowances and warranty as well as current agreements. Provisions for taxes other than income taxes mainly relate to value added tax, real estate tax...

  • Page 240
    ... Japan. The defined benefit plans of adidas AG mainly relate to direct pension commitments as well as commitments which relate to the Executive Board and which are managed through a pension fund in combination with a reinsured support fund. The benefit plans generally provide payments in case of...

  • Page 241
    ... adjusted in 2012 due to the current market development. Had a discount rate been used which was based on the previous year-end's approach, the defined benefit obligation would have increased by approximately â,¬ 20 million. adidas Group / 2012 Annual Report 20 12 Of the total pension expenses...

  • Page 242
    Consolidated Financial Statements Notes / Notes to the Consolidated Statement of Financial Position / 04.8 / Fair value of plan assets (â,¬ in millions) 2012 2011 Fair value of plan assets at January 1 Currency translation differences Pensions paid Contributions by the employer Contributions paid...

  • Page 243
    ... capital increase. The Executive Board of adidas AG did not issue shares from the Contingent Capital 2010 in the 2012 financial year or in the period beyond the balance sheet date up to and including February 22, 2013. 221 20 12 Authorised Capital The Executive Board of adidas AG did not make use...

  • Page 244
    ... adidas AG shares The Annual General Meeting on May 6, 2010, authorised the Executive Board to repurchase adidas AG shares up to an amount totalling 10% of the nominal capital until May 5, 2015. The authorisation may be used by the company but also by its subsidiaries or by third parties on account...

  • Page 245
    ... seeks to maintain a balance between a higher return on equity that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. The Group further aims to maintain net debt below two times EBITDA over the long term. Financial leverage is de...

  • Page 246
    ... future cash ï¬,ows using current interest rates for debt of similar terms and remaining maturities, and adjusted by an adidas Group specific credit risk premium. Fair values of long-term financial assets classified as availablefor-sale are based on quoted market prices in an active market or...

  • Page 247
    ...cost Fair value recognised in equity Fair value recognised in net income Measurement according to IAS 17 Fair value Dec. 31, 2012 Financial assets Cash and cash equivalents Short-term financial assets Accounts receivable Other current financial assets... 225 20 12 adidas Group / 2012 Annual Report

  • Page 248
    ...cost Fair value recognised in equity Fair value recognised in net income Measurement according to IAS 17 Fair value Dec. 31, 2011 Financial assets Cash and cash equivalents Short-term financial assets Accounts receivable Other current financial assets...- 1,887 445 adidas Group / 2012 Annual Report

  • Page 249
    ... of Risks arising from Financial Instruments") can be found in / NOTE 07 and the Group Management Report / SEE RISK AND OPPORTUNITY REPORT, P. 164. adidas Group / 2012 Annual Report 20 Level 1 is based on quoted prices in active markets for identical assets or liabilities. Level 2 is based on...

  • Page 250
    ... traded, the adidas Group uses generally accepted quantitative financial models based on market conditions prevailing at the balance sheet date. In 2012, the fair values of the derivatives were determined applying mainly the "par method", which uses actively traded forward rates. Notional amounts...

  • Page 251
    ... presented in marketing overheads. In 2012, marketing working budget accounted for 25% (2011: 25%) of the total other operating expenses. Expenses for central administration include the functions IT, Finance, Legal, Human Resources, Facilities & Services as well as General Management. Depreciation...

  • Page 252
    ... Statement / 04.8 / 32 Cost by nature Expenses are presented by function according to the "cost of sales method" in the income statement. Supplementary information on the expenses by nature is detailed below. Financial expenses (â,¬ in millions) Year ending Dec. 31, 2012 Year ending Dec. 31, 2011...

  • Page 253
    ... millions) 2012 2011 1) Deferred tax assets, net as at January 1 Deferred tax income Change in consolidated companies 2) Change in deferred taxes attributable to effective portion of qualifying hedging instruments recorded in other comprehensive income 3) Currency translation differences Change in...

  • Page 254
    ... in 2012 as the conversion right does not have any value as at the balance sheet date / SEE NOTE 18. The deferred tax income includes tax income of â,¬ 60 million in total (2011: â,¬ 44 million) related to the origination and reversal of temporary differences. The effective tax rate of the Group...

  • Page 255
    ...all business activities relating to the sale of adidas and Reebok products directly to end consumers through own retail and own e-commerce platforms. The operating segment TaylorMade-adidas Golf comprises the brands TaylorMade, adidas Golf, Adams Golf and Ashworth. The Other Centrally Managed Brands...

  • Page 256
    ... taxes 1) Restated according to IAS 8, see Note 03. Impairment losses and reversals of impairment losses (â,¬ in millions) Year ending Dec. 31, 2012 Year ending Dec. 31, 2011 Reportable segments Other businesses HQ/Consolidation Total 3 0 265 268 (1) 0 0 (1) adidas Group / 2012 Annual Report

  • Page 257
    .... 31, 2011 1) Product information Net sales (non-Group) (â,¬ in millions) Year ending Dec. 31, 2012 Year ending Dec. 31, 2011 1) Accounts receivable and inventories of reportable segments Accounts receivable and inventories of other businesses Segmental assets Non-segmental accounts receivable and...

  • Page 258
    ...31, 2011 Employees Within 1 year Between 1 and 5 years After 5 years Total 679 1,991 1,098 3,768 681 1,918 1,244 3,843 Own retail Sales Logistics Marketing Central administration Production Research and development Information technology Total Year ending Dec. 31, 2012 Year ending Dec. 31, 2011 24...

  • Page 259
    ... to the Supervisory Board on February 22, 2013. It is the Supervisory Board's task to examine the consolidated financial statements and give their approval and authorisation for issue. Herzogenaurach, February 22, 2013 The Executive Board of adidas AG 237 20 12 adidas Group / 2012 Annual Report

  • Page 260
    ... 31, 2011/January 1, 2012 Currency effect Additions Impairment losses Reversals of impairment losses Increase in companies consolidated Transfers from assets held for sale Transfers to assets held for sale Decrease in companies consolidated Transfers Disposals December 31, 2012 Net carrying amount...

  • Page 261
    Consolidated Financial Statements Statement of Movements of Intangible and Tangible Assets / 04.9 / ATTACHMENT I Internally generated software Total intangible assets Land and buildings Technical equipment and machinery Other equipment, furniture and fixtures Construction in progress Total ...

  • Page 262
    10 Consolidated Financial Statements Shareholdings / 04.10 / Shareholdings .. / Shareholdings of adidas AG, Herzogenaurach (at December 31, 2012) Currency Equity (currency units in thousands) ATTACHMENT II Share in capital held by 6) in % Company and domicile Germany 1 GEV Grundstü...

  • Page 263
    Consolidated Financial Statements Shareholdings / 04.10 / .. Shareholdings of adidas AG, Herzogenaurach (at December 31, 2012) Currency Equity (currency units in thousands) ATTACHMENT II Share in capital held by 6) in % Company and domicile 46 adidas Belgium NV 47 Five Ten Europe NV 48 adidas ...

  • Page 264
    Consolidated Financial Statements Shareholdings / 04.10 / .. / Shareholdings of adidas AG, Herzogenaurach (at December 31, 2012) Currency Equity (currency units in thousands) ATTACHMENT II Share in capital held by 6) in % Company and domicile 94 Taylor Made Golf Co., Inc. 11) 95 Ashworth, LLC....

  • Page 265
    Consolidated Financial Statements Shareholdings / 04.10 / .. Shareholdings of adidas AG, Herzogenaurach (at December 31, 2012) Currency Equity (currency units in thousands) ATTACHMENT II Share in capital held by 6) in % Company and domicile 140 Taylor Made Golf Co., Ltd. 141 Adams Golf Japan, ...

  • Page 266
    ... the adizero Primeknit in London, its first one-piece-upper performance running shoe featuring a new seamless engineering technology. At the same time, the shoe is one of the brand's most sustainable products. adidas achieves record sales of well over â,¬ 1.6 billion in the football category in...

  • Page 267
    05 ADDITIONAL INFORMATION 05.1 05.2 05.3 05.4 05.5 05.6 Ten-Year Overview Glossary Index Declaration of Support Publishing Details & Contact Financial Calendar 246 250 256 257 258 259 05 A D D I T I O N A L I N F O R M AT I O N

  • Page 268
    ...Brand (â,¬ in millions) adidas Reebok TaylorMade-adidas Golf Rockport Reebok-CCM Hockey Net Sales by Product Category (â,¬ in millions) Footwear 3) Apparel 3) Hardware 3) Balance Sheet Data (â,¬ in millions) Total assets 6) Inventories Receivables and other current assets Working capital 6) Net cash...

  • Page 269
    Additional Information Ten-Year Overview / 05.1 / 2009 2008 2007 2006 2) 2005 2004 2003 10,381 4,712 86 100 4,390 780 508 (150...1,733 (2,231) 2,828 5,750 1,230 1,551 2,644 551 2,684 4,434 1,155 1,425 1,336 (665) 1,544 4,188 1,164 1,335 1,433 (1,018) 1,285 adidas Group / 2012 Annual Report

  • Page 270
    Additional Information Ten-Year Overview / 05.1 / .. / Ten-Year Overview (continued) 2012 2011 2010 Balance Sheet Ratios Net borrowings/EBITDA 3) Average operating working capital as a percentage of net sales Financial leverage 6) Equity ratio 6) Equity-to-fixed-assets ratio 6) Asset Coverage ...

  • Page 271
    Additional Information Ten-Year Overview / 05.1 / 2009 2008 2007 2006 2) 2005 2004 2003 1.2 24.3% 24.3% 42.5% 85.9% 137.4% 102.9% 49.5% 50.5% 30.0% 80.4% 132.2% 6.3 6.5%...596 1,352 38,982 1,283 31,344 1,186 26,376 1,087 15,935 706 14,254 637 15,686 709 adidas Group / 2012 Annual Report

  • Page 272
    ... to invest in foreign-based companies by buying their shares in the USA instead of through an overseas exchange. Capital expenditure Total cash expenditure used for the purchase of tangible and intangible assets, excluding acquisitions and finance leases. Corporate governance Distribution of...

  • Page 273
    ... by the capital market, indicating whether shareholders have earned a return that compensates the risk. EVA = operating profit after tax - cost of capital. Free cash ï¬,ow Cash that is generated by a company's operating activities after the deduction of net Investments and other cash expenses such...

  • Page 274
    ...been issued by the International Accounting Standards Board (IASB). The objective is to achieve uniformity and transparency in the accounting principles that are used by businesses and other organisations for financial reporting around the world. / L Leather Working Group (LWG) The Leather Working...

  • Page 275
    ... capitalisation Total market value of all shares outstanding. Market capitalisation = number of shares outstanding Ã- current market price. Net borrowings/net cash = short-term borrowings + long-term borrowings - cash - short-term financial assets. Operating working capital A company's short-term...

  • Page 276
    ... business segments: Wholesale, Retail, TaylorMadeadidas Golf, Rockport, Reebok-CCM Hockey and Other Centrally Managed Brands. / R Regions The adidas Group distinguishes six regions: Western Europe, European Emerging Markets, North America, Greater China, Other Asian Markets and Latin America. Sell...

  • Page 277
    ... information/ decision is then transported back to the top. Working capital A company's short-term disposable capital used to finance day-to-day operations. Working capital = total current assets - total current liabilities / SEE ALSO OPERATING WORKING CAPITAL. adidas Group / 2012 Annual Report

  • Page 278
    ... Income 133, 145 S Segmental Reporting 131, 150 ff., 233 ff. Share Price Performance 60 ff. Shareholder Structure 64 Shareholders' Equity 140, 146, 221 ff. Shareholdings 64, 222, 240 ff. Sourcing 102 ff., 119, 173 Statement of Cash Flows 194, 207 Statement of Financial Position (Balance Sheet...

  • Page 279
    ...Made Korea Ltd., Seoul, Korea The Rockport Company, LLC, Wilmington, Delaware, USA World of Commerce GmbH & Co. KG, Herzogenaurach, Germany World of Commerce Management GmbH, Herzogenaurach, Germany Zhuhai adidas Technical Services Limited, Zhuhai, China 257 20 12 adidas Group / 2012 Annual Report

  • Page 280
    ...also available in German. For further adidas Group publications, please see our corporate website. To improve readability, registered trademarks are omitted in this Annual Report. Concept and Design Strichpunkt, Stuttgart / Berlin Printed by Eberl Print, Immenstadt adidas Group / 2012 Annual Report

  • Page 281
    ... of 2012 Annual Report May 3, 2013 First Quarter 2013 Results Press release, conference call and webcast Publication of First Quarter 2013 Report May 8, 2013 Annual General Meeting Fuerth (Bavaria), Germany Webcast May 9, 2013 Dividend payment (Subject to Annual General Meeting approval...

  • Page 282
    adidas AG Adi-Dassler-Str. 1 91074 Herzogenaurach Germany ©2013 adidas AG.