Reebok 2010 Annual Report Download - page 2

Targets 2010 Results 2010 Outlook 2011
Low- to mid-single-digit currency-neutral sales increase
Bring major new concepts, technology evolutions and
revolutions to market, such as:
adidas:
– adiZero F50 football boot
– miCoach training system
Reebok:
– ZigTech training shoe
TaylorMade-adidas Golf:
– R9 SuperTri driver
Rockport:
– TruWalk footwear collection
Reebok-CCM Hockey:
– 11K skate
On a currency-neutral basis, sales to increase:
– at a low- to mid-single-digit rate for the Wholesale
segment
– at a high-single-digit rate for the 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
Net sales reach € 11.990 billion
Group currency-neutral sales increase 9%
Major 2010 product launches:
adidas:
– adiStar Salvation running shoe
– adiZero F50 football boot
– miCoach training system
Reebok:
– ZigTech training shoe
– RunTone running shoe
TaylorMade-adidas Golf:
– R9 SuperTri driver
– Burner SuperFast driver and fairway woods
Rockport:
– TruWalk men’s and women’s footwear
Reebok-CCM Hockey:
– Reebok 11K skate and CCM U+ Crazy Light skate
On a currency-neutral basis:
– Wholesale segment sales increase 8%
– Retail segment sales increase 18%
– adidas brand sales increase 9%
– Reebok brand sales increase 12%
– Other Businesses sales increase 2%
– TaylorMade-adidas Golf sales increase 1%
Gross margin: 47.8%
Operating margin: 7.5%
Operating working capital as a percentage of sales
improves to 20.8%
Capital expenditure: € 269 million
Net borrowings reduced substantially to € 221 million;
year-end financial leverage: 4.8%
Net income attributable to shareholders increases 131% to
€ 567 million; diluted earnings per share increases 122% to
€ 2.71
adidas AG share price increases 29%;
dividend of € 0.80 per share
(subject to Annual General Meeting approval)
Mid- to high-single-digit currency-neutral sales increase
Bring major new concepts, technology evolutions and
revolutions to market, such as:
adidas:
– adiZero F50 Runner running shoe
– adiPower Predator football boot
Reebok:
– RealFlex footwear
– EasyTone Plus footwear
– ClassicLite footwear and apparel collection
TaylorMade-adidas Golf:
– R11 and R11 TP driver
Rockport:
– Naomi women’s footwear collection
Reebok-CCM Hockey:
– CCM U+ Crazy Light II stick
On a currency-neutral basis, sales to increase:
– at a mid-single-digit rate for the Wholesale segment
– at a low-double-digit rate for the Retail segment
– at a mid-single-digit rate for Other Businesses
Gross margin level between 47.5% and 48.0%
Increase operating margin to between 7.5% and 8.0%
Increase operating working capital as a percentage of sales
Capital expenditure range € 350 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 € 2.98 and € 3.12
Further increase shareholder value