Reebok 2013 Annual Report Download - page 258

adidas Group
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2013 Annual Report
Additional Information
254
2013
Glossary
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05.2
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P
Parallel imports
Goods that are transferred via a non-authorised
channel from lower-priced countries into higher-
priced countries. They are the result of retailers
and/or end consumers trying to profit from price
differences between two countries.
Payment factory
A centralised process to execute all active payment
transactions (transfers, direct debits, etc.). It
supports a harmonised and standardised external
and internal payment process and executes
payments from local bank accounts owned by
subsidiaries or on behalf of adidas AG. In addition,
the payment factory collects all electronic bank
statements.
Performance business
In the sporting goods industry, performance
business relates to technical footwear and apparel
used primarily in doing sports.
Price-earnings ratio (P/E)
A company’s share price divided by its current or
future diluted earnings per share. The P/E ratio is
used by investors as a fundamental measure of the
attractiveness of a particular security versus other
securities or the overall market. It is usually more
useful to compare P/E ratios of one company to
other companies in a similar industry. In general, a
high P/E ratio suggests that investors are expecting
higher earnings growth in the future compared to
companies with a lower P/E.
Price points
Specific selling prices, normally using
“psychological” numbers, e.g. a product price
of US $ 99.99 instead of US $ 100.
Private placement
Placement of debt securities directly to institutional
investors, such as banks, mutual funds, insurance
companies, pension funds and foundations.
Profit protection
A business activity (mainly found within retail
companies) designed to reduce preventable losses
caused, for example, by theft, fraud, vandalism,
waste, abuse, misconduct or failure by employees
to follow existing policies or procedures.
Promotion partnerships
Partnerships with events, associations, leagues,
clubs and individual athletes. In exchange for the
services of promoting the adidas Group, the party
is provided with products and/or cash and/or
promotional materials.
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R
Regions
The adidas Group distinguishes six regions:
Western Europe, European Emerging Markets,
North America, Greater China, Other Asian Markets
and Latin America.
RFID
Radio-frequency identification (RFID) is the
wireless non-contact use of radio-frequency
electromagnetic fields to transfer data, for the
purposes of automatically identifying and tracking
tags attached to objects.
Risk-free rate
Rate of return to be expected on a risk-free
investment.
Risk premium
Extra return that the overall market or a particular
stock must provide over the risk-free rate to
compensate an investor for taking a relatively
higher risk.
Risk premium = overall market rate – risk-free rate
Rolling forecast
A projection about the future that is updated at
regular intervals, keeping the forecasting period
constant (e.g. twelve months).
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S
Sales working budget
Expenditures that relate to advertising and
promotion initiatives at the point of sale as well
as to store fittings and furniture. As sales working
budget expenses are channel-specific, they
are allocated to the adidas Group’s operating
segments.
Segment
Also called business segment. Units within a
company that have profit and loss responsibility.
The adidas Group is currently divided into six
business segments: Wholesale, Retail, TaylorMade-
adidas Golf, Rockport, Reebok-CCM Hockey and
Other Centrally Managed Brands.
Sell-through
An indicator of how fast retailers are selling a
particular product to the consumer.
Share turnover
The total value of all shares traded in the share
price currency over a specific period of time
(normally daily). It is calculated by multiplying the
number of shares traded by the respective price.
Shop-in-shop
An exclusive adidas, Reebok or Rockport area
within a wholesale partner’s or retailer’s store. The
concept may be operated by the store or the adidas
Group, depending on individual arrangements.
The goal of this distribution method is to give
consumers a similar experience to an own-retail
environment, albeit on a smaller scale.
Signature collection
A collection which is developed in close
collaboration with top athletes and personalities,
bearing the signature, logo and/or name of the
athlete. The offering can be either a single product
or a broader product family (footwear, apparel and
hardware).
Single-sourcing model
Supply chain activities limited to one specific
supplier. Due to the dependency on only one
supplier, the adidas Group can face disadvantages
during the sourcing process.