Reebok 2006 Annual Report Download - page 4
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» Deliver double-digit currency-neutral sales growth
(high-single-digit growth for the Group excl. Reebok)
» Bring major new concepts, technology evolutions and
revolutions to market
» Grow currency-neutral sales at adidas and
TaylorMade-adidas Golf in all regions
» Gross margin range 44 – 46% (47 – 48% excl. Reebok)
» Operating margin around 9% (10 – 10.5% excl. Reebok)
» Continue to optimize working capital management
» Capital expenditure range € 300 million – € 350 million
(excluding extraordinary investments related to Reebok)
» Reduce debt after financing of Reebok acquisition
» Deliver double-digit net income growth versus 2005
level of € 383 million
» Further increase shareholder value
» Group sales reach € 10.1 billion; currency-neutral growth
of 53% (14% excluding Reebok)
» Major 2006 product launches:
› adidas: +F50 TUNIT football boot, adidas_1 basketball
shoe, Adilibria women’s apparel collection, integrated
training system by adidas and Polar
› Reebok: Trinity KFS running shoe, Rbk 9k Pump Skate
› TaylorMade-adidas Golf: r7® irons, TaylorMade® Tour
Preferred® (TP) golf balls
» Currency-neutral sales increase 14% at adidas and 22%
at TaylorMade-adidas Golf; currency-neutral sales grow
in all regions
» Gross margin: 44.6% (47.8% excl. Reebok)
» Operating margin: 8.7% (10.5% excl. Reebok)
» Operating working capital as a percentage of net sales
reduced by 0.2pp to 25.8% (excluding Reebok reduced by
2.5pp to 23.5%)
» Capital expenditure: € 277 million (excluding
extraordinary investments related to Reebok)
» Net borrowings reduced to € 2.231 billion;
year-end financial leverage: 78.9%
» Highest ever net income attributable to shareholders
at € 483 million (+26%)
» Dividend increase of 29% proposed; adidas AG share
price underperforms DAX-30 and MSCI World Textiles,
Apparel and Luxury Goods Index
» Mid-single-digit currency-neutral sales growth
» Bring major new concepts, technology evolutions and
revolutions to market
» Currency-neutral sales to grow at all brands and for
all regions
» Gross margin range 45 – 47%
» Operating margin around 9%
» Reduce operating working capital as a percentage of
net sales to below 25%
» Capital expenditure range € 300 million – € 400 million
» Reduce year-end net borrowings to below
€ 2 billion
» Net income to grow double-digit, approaching 15%
» Further increase shareholder value
TARGETS 2007TARGETS 2006 RESULTS 2006