Reebok 2009 Annual Report Download - page 4

TARGETS 2009
Low- to mid-single-digit currency-neutral sales decline
Bring major new concepts, technology evolutions and
revolutions to market
On a currency-neutral basis:
low- to mid-single-digit sales decline for adidas
segment
at least stable sales for Reebok segment
low-single-digit sales increase at TaylorMade-adidas
Golf
Gross margin decline (2008: 48.7%)
Operating margin decline (2008: 9.9%)
Reduce operating working capital as a percentage of
sales (2008: 24.5%)
Capital expenditure range € 300 million – € 400 million
Reduce net borrowings (2008: € 2.189 billion)
Net income attributable to shareholders and diluted
earnings per share decline (2008: € 642 million and
€ 3.07, respectively)
Further increase shareholder value
RESULTS 2009
Net sales reach € 10.4 billion;
Group currency-neutral sales decrease 6%
Major 2009 product launches:
adidas:
adiSTAR® Salvation running shoe
F50i football boot
Reebok:
EasyTone™ shoe
TaylorMade-adidas Golf:
R9™ metalwood, Burner® family of irons
Penta TP ball
Rockport:
DresSport® 2
Reebok-CCM Hockey:
U+™ Crazy Light Stick
On a currency-neutral basis:
Wholesale segment sales decline 9%
Retail segment sales increase 7%
Total adidas brand sales decline 5%
Total Reebok brand sales decline 8%
Sales of Other Businesses decline 4%
TaylorMade-adidas Golf revenues decline 2%
Gross margin: 45.4%
Operating margin: 4.9%
Operating working capital as a percentage of sales
improves to 24.3%
Capital expenditure: € 240 million
Net borrowings reduced substantially to € 917 million;
year-end financial leverage: 24.3%
Net income attributable to shareholders declines 62%
to € 245 million;
diluted earnings per share decline 60% to € 1.22
adidas AG share price increases 39%;
dividend of € 0.35 per share (subject to
Annual General Meeting approval)
OUTLOOK 2010
Low- to mid-single-digit currency-neutral sales increase
Bring major new concepts, technology evolutions and
revolutions to market, such as:
adidas:
F50 football boot
miCoach training system
Reebok:
ZigTech™ training shoe
TaylorMade-adidas Golf:
R9™ SuperTri Driver
Rockport:
TruWALK footwear collection
Reebok-CCM Hockey:
11K skates
On a currency-neutral basis, sales to increase:
at a low- to mid-single-digit rate for Wholesale
segment
at a high-single-digit rate for Retail segment
at a low-single-digit rate for Other Businesses
Increase gross margin to a level between 46% and 47%
Increase operating margin to a level around 6.5%
Further reduction of operating working capital as a
percentage of sales
Capital expenditure range € 300 million – € 400 million
Further reduction of net borrowings;
net borrowings/EBITDA ratio to be maintained below 2
Diluted earnings per share to increase to a level
between € 1.90 and € 2.15
Further increase shareholder value