Reebok 2006 Annual Report Download - page 17

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Herbert, 2006 was a big year for the Group.
What were the stand-out moments and events
of the year?
The 2006 World Cup left a huge impression with
millions of people around the globe. What was its
impact on the Group?
2006 was a truly exciting year for the adidas Group. With the acquisition of Reebok, the Group broke
through the € 10 billion sales mark for the first time. During the year, the adidas brand captured the
world’s attention with its dominant presence at the 2006 FIFA World Cup™. Significant progress was
made at fully integrating the Reebok brands and organization. The Group continued to improve opera-
tional efficiency and financial strength and delivered 26% earnings growth. In the following interview,
Herbert Hainer, adidas Group Chairman and CEO, reviews 2006, and discusses the Group’s strategic and
financial outlook.
2006 was without a doubt the most exciting year in my tenure as CEO of the adidas Group. We chose the
name “setting the pace” for this annual report, because that’s exactly what I believe we did in 2006 – and by
the way what I challenge my Group to keep doing every day.
In February, we welcomed Reebok into the adidas family, adding a powerful new dimension to our Group.
Integration and change management quickly became two of our highest day-to-day priorities. Although
there are still many challenges, we made important strides in putting the right people and processes in
place to ensure we maximize the long-term opportunities this milestone acquisition presents. While all
this was going on, adidas reigned supreme at the 2006 FIFA World Cup™ during the summer taking prod-
uct, communication and execution to new levels. And let’s not forget TaylorMade-adidas Golf, which also
delivered industry-leading top-line results and gained market share in several categories. Financially, too,
the year was a record one with sales surpassing € 10 billion for the first time and net earnings growing an
outstanding 26%, which would have been even higher excluding negative accounting impacts from the first-
time inclusion of Reebok.
In every respect, this World Cup was a tremendous success – for fans, for Germany, and for adidas. We
clearly scored with consumers, breaking sales records for footballs, boots and national team replica prod-
ucts. There were more players in the tournament wearing adidas footwear than any other brand. And our
brand communication made a step change, with spectacular onsite advertising. Independent research con-
firmed that adidas was the hands-down winner in brand recognition among the 15 official partners, and our
major competitors. All of this meant that we were able to extend our market-leading position in the world’s
favorite sports category, growing football sales by more than 30% to over € 1.2 billion.
Interview with the CEO ›