Reebok 2008 Annual Report Download - page 128

124 Group Management Report – Our Financial Year Subsequent Events and Outlook
2009 Product Launch Schedule
Product Brand Launch Date
adiPure football boot adidas January
CC Genius tennis shoe adidas January
adidas tennis rackets adidas January
Style Essentials footwear adidas January
adidas Originals Vespa footwear and
apparel collection
adidas January
Terrex outdoor footwear and apparel adidas February
adidas SLVR Label footwear and apparel adidas February
Gazelle running footwear and apparel adidas March
UEFA Champions League Finale Ball “Rome” adidas April
F50i football boot adidas June
Supernova™ Sequence 2 running shoe adidas June
Remix basketball footwear and apparel adidas June
adidas TECHFIT™ Tuned Compression adidas June
Men’s training FreeRunning footwear
and apparel
adidas June
UEFA Champions League 09/10 season ball adidas July
2010 FIFA World Cup™ federation
home jerseys
adidas November
2010 FIFA World Cup™ match ball adidas December
EasyTone™ training shoe Reebok January
Playcool X apparel Reebok January
SelectRide™ running and training shoe Reebok February
Reebok Cirque du Soleil footwear and
apparel collection
Reebok February
Premier Trinity KFS IV running shoe Reebok July
Premier Verona KFS II running shoe Reebok July
DresSports® 2 Rockport September
Octo Gun stick line CCM Hockey April
Glove line CCM Hockey April
U+™ Pro Skate CCM Hockey April
KFS protective equipment Reebok Hockey April
KFS hockey gloves Reebok Hockey April
10K Sickick II stick Reebok Hockey April
8.0.8 O-Stick Reebok Hockey October
R9™ drivers TaylorMade-adidas Golf March
R9™ fairway woods TaylorMade-adidas Golf March
R9™ Rescue TaylorMade-adidas Golf March
Burner® 09 irons TaylorMade-adidas Golf March
adidas Group 2009 outlook
Currency-neutral sales growth low- to mid-single-digit decline
Gross margin decline
Operating margin decline
Earnings per share decline
Working capital management to improve balance sheet
Operating working capital management is a major focus of
our efforts to improve the Group’s balance sheet see Internal
Group Management System, p. 058. Our goal is to reduce operat-
ing working capital as a percentage of sales in 2009. Inventory
management will be a focus area in this respect. Based on
tight control of inventory ageing, optimising inventory levels
for fast replenishment is at the forefront of our activities to
ensure we are able to satisfy short-term retailer demand on an
at-once basis.
Investment level to be between € 300 and € 400 million
In 2009, investments in tangible and intangible assets are
expected to amount to € 300 million to € 400 million (2008:
€ 380 million). Investments will focus on adidas and Reebok
controlled space initiatives, in particular in emerging mar-
kets. These investments will account for almost 50% of total
investments in 2009. Other areas of investment include the
further development of the adidas Group Headquarters in
Herzogenaurach, Germany and the increased deployment of
SAP and other IT systems in major subsidiaries within the
Group. The most important factors in determining the exact
level and timing of investments will be the rate at which we
are able to successfully secure controlled space opportunities.
All investments within the adidas Group in 2009 are expected
to be fully fi nanced through cash generated in our operating
businesses.
Excess cash to be used to reduce net debt
In 2009, we expect continued strong cash fl ows from operating
activities. Cash infl ows from operating activities will be used
to fi nance working capital needs, investment activities, as well
as dividend payments. Tight working capital management and
disciplined investment activities are expected to help optimise
the Group’s free cash fl ow in 2009. We intend to largely use
excess cash to reduce net borrowings, which we forecast to
be below the prior year level. As a result, we expect to make
progress towards achieving our medium-term fi nancial lever-
age target of below 50% (2008: 64.6%).