Reebok 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 Reebok annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 268

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268

adidas Group
Annual Report
2014
M A K E A
DIFFERENCE

Table of contents

  • Page 1
    MAKE A DIFFERENCE adidas Group Annual Report 2014

  • Page 2
    ... Targets 2014 Currency-neutral sales development: adidas Group increase at a Results 2014 1) 2) Currency-neutral sales development: adidas Group increase of Outlook 2015 1) Currency-neutral sales development: adidas Group increase at a high-single-digit rate 6% Group sales of mid-single-digit...

  • Page 3
    ... (at year-end) Number of employees 1) Number of shares outstanding Average number of shares 53,731 204,327,044 208,776,457 49,808 209,216,186 209,216,186 7.9% (2.3%) (0.2%) 1) 2014 and 2013 reï¬,ect continuing operations as a result of the planned divestiture of the Rockport business. 2) Includes...

  • Page 4
    ... and balls. adidas Sport Performance The guiding principle of adidas Sport Performance is to make athletes better. The main focus is on five key categories: football, running, basketball, training and outdoor. adidas Golf adidas Golf develops high-performance golf footwear and apparel for active...

  • Page 5
    MAKE A DIFFERENCE adidas Group Annual Report 2014 SPORT, T H E Y M A K E A D I F F E R E N C E : FRACTIONS OF A SECOND. ONLY A FEW CENTIMETRES. A COUPLE OF GRAMS. T O ATHLETES , T H E Y M A K E A D I F F E R E N C E : IN our groundbreaking Our decades of Our overwhelming INNOVATIONS EX P ...

  • Page 6
    ... on Corpor ate Governance Compens ation Repor t Our Share 6 10 12 14 20 28 38 02 02.1 02.2 02.3 02.4 02.5 02.6 02.7 02.8 OUR GROUP GROUP MANAGEMENT REPORT Group Str ategy Global Sales Str ategy Global Br ands Str ategy Other Businesses Str ategy Global Operations Research and Development Employees...

  • Page 7
    ... 03.1 03.2 FINANCIAL REVIEW GROUP MANAGEMENT REPORT Internal Group Management System Group Business Per formance Economic and Sector Development Income Statement Statement of Financial Position and Statement of Cash Flows Treasury Financial Statements and Management Report of adidas AG Disclosures...

  • Page 8

  • Page 9
    01 TO OUR SHAREHOLDERS 01.1 01.2 01.3 01.4 01.5 01.6 01.7 Letter from the CEO E xecutive Board Super visor y Board Super v isor y Board Repor t Cor por ate Gover nance Repor t including the Declar ation on Corpor ate Governance Compens ation Repor t Our Share 6 10 12 14 20 28 38 TO OUR ...

  • Page 10
    ... success of the ZX Flux and the Stan Smith product franchise as well as our first product launches as part of our partnerships with Rita Ora and Pharrell Williams, to name just a few. Also our NEO business continues to experience dynamic growth, with sales up 27%. adidas Group / 2014 Annual Report

  • Page 11
    ...part. So let me go into more detail on the various factors that resulted in not meeting your and our high expectations last year. As far as our golf business is concerned, we misjudged the market situation at the beginning of the year. A decline in the number of active players as well as high levels...

  • Page 12
    ... all sales channels and marketing activation activities, utilise cross-selling opportunities and align pricing across all channels. As part of initial pilot projects, we have given consumers in some markets the option to order online and then pick up their products in a store. First feedback...

  • Page 13
    ...clear focus on the US market, are a key step in this direction. They impressively underline our ambitions and make it clear that adidas and Reebok know and understand athletes' motivations better than any other sports brand in the world - another important cornerstone is the development of the right...

  • Page 14
    ... J. Stalker is married and lives near Herzogenaurach, Germany. Robin J. Stalker is also: / Member of the Supervisory Board, Schaefï¬,er AG, Herzogenaurach, Germany FOR MORE INFORMATION ON THE ADIDAS GROUP'S EXECUTIVE BOARD: WWW.ADIDAS-GROUP.COM EXECUTIVE-BOARD adidas Group / 2014 Annual Report

  • Page 15
    ... the adidas Group, he has held many senior management positions, including Business Unit Manager, Key Account Manager Europe and Head of Region Europe, Middle East and Africa. In 2009, he became Chief Sales Officer Multichannel Markets. In 2013, Roland Auschel was appointed to the Executive Board...

  • Page 16
    ... Managing Partner, Jung von Matt/sports GmbH, Hamburg, Germany K a t hr in Menge s 4 ) residing in Neuss, Germany Executive Vice President Human Resources and Infrastructure Services, Henkel AG & Co. KGaA, Düsseldorf, Germany Mandates within the Henkel Group / Member of the Supervisory Board...

  • Page 17
    .... 1) Re-elected at the constituent meeting of the Supervisory Board on May 8, 2014. 2) Until May 7, 2014. 3) Since April 4, 2014; formerly Deputy Chairman of the Works Council Herzogenaurach. 4) Since the end of the Annual General Meeting held on May 8, 2014. adidas Group / 2014 Annual Report

  • Page 18
    ... in the long term. Our company is now well positioned to again achieve sales growth at all brands as well as an overproportionate improvement in the Group's profitability in 2015. Supervision and advice in dialogue with the Executive Board In the year under review, we again performed all our tasks...

  • Page 19
    ... for this purpose. In November, the Executive Board provided us with information on the growth potential of the adidas and Reebok brands in the North American market and presented the corresponding three-year plan 2015/2017, which we discussed intensively. adidas Group / 2014 Annual Report

  • Page 20
    ... compensation expert. The Supervisory Board already took the findings of the review into consideration in its resolutions in August relating to the extension of Glenn Bennett's and Robin J. Stalker's Executive Board service contracts and their pension benefits. adidas Group / 2014 Annual Report

  • Page 21
    ... of the Supervisory Board as a whole, detailed individually above, concerning the termination agreement with Erich Stamminger, the conclusion of new or extended Executive Board service contracts as well as the concrete assessment of the Executive Board members' adidas Group / 2014 Annual Report

  • Page 22
    ...Chief Financial Officer and the auditor before the respective dates of publication, also the preliminary examination of the annual financial statements and the consolidated financial statements for 2013, including the combined management report of adidas AG and the Group, as well as the Executive...

  • Page 23
    ... and the provision of additional information. The auditor did not report any significant weaknesses with respect to the internal control and risk management system relating to the accounting process. We also discussed in depth with the Executive Board the proposal concerning the appropriation...

  • Page 24
    ... sustainable increase in company value. When filling management positions in the company, the Executive Board takes diversity into consideration. It especially aims for an appropriate consideration of women. We plan to increase the number of women in management positions to 32% worldwide by the end...

  • Page 25
    ... on key aspects of strategy, planning and business development as well as on questions of risk management and compliance within the Group. Further information on Corporate Governance More information on topics covered in this report can be found on our website www.adidas-group.com/s/ corporate...

  • Page 26
    ..., became the successor of Erich Stamminger as member of the Executive Board responsible for Global Brands. The Supervisory Board considers the increase in the number of women in management positions within the adidas Group as necessary to ensure that in the future more suitable female candidates...

  • Page 27
    ...between Executive Board compensation and that of senior management and employees overall is taken into account, also in terms of its development over time. Further information on Executive Board compensation is compiled in the Compensation Report. In order to increase the efficiency of its work and...

  • Page 28
    ... Board HERBERT HAINER Chief Executive Officer IGOR L AND A U Chairman of the Supervisory Board The aforementioned Declaration of Compliance dated February 12, 2015 has been published under and can be downloaded at www.adidas-Group.com/s/corporate-governance. adidas Group / 2014 Annual Report

  • Page 29
    ... Affairs department, with its worldwide team, has for many years been monitoring the rights of employees in the supply chain as well as with the coordination of the environmental strategy and product safety management. In line with the Group-wide sustainability programme, the adidas Group developed...

  • Page 30
    ... sport, and moreover learn a good deal about values, culture and life in different countries. Volunteer work furthermore enhances our employees' motivation as well as their teamwork, leadership and communication skills. Our website provides information on the various projects. www.adidas-group.com...

  • Page 31
    ... the total number of shares held by all members of the Executive Board and the Supervisory Board. A detailed overview of Directors' dealings in 2014 is published on our website. www.adidas-group.com/s/directors-dealings Accounting and annual audit adidas AG prepares the annual financial statements...

  • Page 32
    ... basically remains unchanged for three years during the term of the service contract. 1) This Compensation Report is a component of the Group Management Report and is also part of the Corporate Governance Report including the Declaration on Corporate Governance. adidas Group / 2014 Annual Report

  • Page 33
    ... components are structured as follows: / The Performance Bonus serves as compensation for the Executive Board's performance in the past financial year in line with the short-term development of the company. It is determined by the Supervisory Board in a two-stage process: / At the beginning of the...

  • Page 34
    ... Our Shareholders Compensation Report / 01.6 / / The LTIP Bonus serves - in line with sustainability-oriented corporate planning - as compensation for the long-term performance of the Executive Board based on the Long-Term Incentive Plan 2012/2014 (LTIP 2012/2014) measured over a three-year period...

  • Page 35
    ..., who belonged to the group of senior executives of adidas AG prior to their Executive Board appointments, will at the time of their retirement receive additional payments from the 'adidas Management Pension Plan'. Until their appointment as Executive Board members, adidas AG had contributed pension...

  • Page 36
    ... Erich Stamminger and is based on the Performance Bonus granted to the respective Executive Board member for the last full financial year. 7) There is no claim to a follow-up bonus if the Executive Board service contract is terminated by release or for good cause. adidas Group / 2014 Annual Report

  • Page 37
    ... the LTIP 2012/2014 measured over a three-year period and to the increased number of Executive Board members. In addition, the service costs for the pension commitments of Glenn Bennett and Robin J. Stalker increased, as the targeted individual pension level was raised effective March 6, 2015. The...

  • Page 38
    ... financial year due to amendment of the Pension Agreements effective March 6, 2015, comprising the 2014 service cost and the 2014 past service cost. 5) Exchange rate 1.3296 $/â,¬ (annual average rate 2014). 6) Exchange rate 1.3283 $/â,¬ (annual average rate 2013). adidas Group / 2014 Annual Report

  • Page 39
    ... the end of March 2015 and March 2016. 6) Increase of the service costs for Glenn Bennett and Robin J. Stalker for the 2014 financial year due to amendment of the Pension Agreements effective March 6, 2015 comprising the 2014 service cost and the 2014 past service cost. adidas Group / 2014 Annual...

  • Page 40
    ... Shareholders Compensation Report / 01.6 / As a variable compensation component with long-term incentive effect, our Executive Board will be granted a new Long-Term Incentive Plan, also covering a three-year period, as of the 2015 financial year. Payments to former members of the Executive Board...

  • Page 41
    ... Tourres 2) Total 1) First-time Supervisory Board member since the end of the Annual General Meeting held on May 8, 2014. 2) Supervisory Board member until the end of the Annual General Meeting held on May 8, 2014. 14,027 14,027 920,000 40,000 40,000 920,000 adidas Group / 2014 Annual Report

  • Page 42
    ...year-end 2014 (in %) 1 year 3 years 5 years 10 years Since IPO adidas AG DAX-30 MSCI World Textiles, Apparel & Luxury Goods Source: Bloomberg. (38) 3 (4) 15 66 51 53 65 108 94 130 177 496 346 397 1) This section is part of the audited Group Management Report. adidas Group / 2014 Annual Report

  • Page 43
    ... AG DAX-30 MSCI World Textiles, Apparel & Luxury Goods Index 03 / The adidas AG share 2014 2013 Important indices Number of shares outstanding 1) Basic earnings per share Cash generated from operating activities per share Year-end price Year high Year low Market capitalisation 5) Dividend per...

  • Page 44
    ....64 74.37 80 78.50 72.86 65.72 62.03 60 59.41 57.09 59.86 55.50 56.27 50 30-day moving average â- High and low share prices 1) Based on daily Xetra closing prices. 53.89 Source: Bloomberg. adidas Group / 2014 Annual Report 55.14 63.74 70 60.30

  • Page 45
    ... the end of 2013. The average daily trading volume more than doubled to 80,800 ADRs in 2014 (2013: 35,800). Deutsche Bank Trust Company Americas runs the adidas AG Level 1 ADR Programme. Further information on our ADR Programme can be found on our website. www.adidas-group.com/adr adidas AG share...

  • Page 46
    ...the company's nominal capital. The average purchase price per share was â,¬ 61.36. A total price of â,¬ 299,999,987 (excluding incidental purchasing costs) was paid to buy back the shares. 42 20 14 Strong international investor base Based on our share register, we estimate that adidas AG currently...

  • Page 47
    ... and private shareholders as well as analysts. In 2014, Management and the Investor Relations team spent 29 days on roadshows and also spent 17 days presenting at 12 national and international conferences. In July 2014, the adidas Group Annual Report once again won the Best of Corporate Publishing...

  • Page 48

  • Page 49
    ...Global Sales Str ategy Global Br ands Str ategy Other Businesses Str ategy Global Operations Research and Development Employees Sustainabilit y 46 49 53 60 66 73 82 89 G R O U P M A N A G E M E N T R E P O R T: This report contains the Group Management Report of the adidas Group, comprising adidas...

  • Page 50
    ...see Global Brands Strategy, p. 53 46 Investments focused on highest-potential markets and channels As a Group, we target strong market positions in all markets in which we compete. However, we have prioritised our investments based on those markets which offer the best medium- to long-term growth...

  • Page 51
    Group Management Report - Our Group Group Strategy / 02.1 / Creating a ï¬,exible supply chain Speed and agility are key to outpacing the competition, providing a constant ï¬,ow of new and relevant products for our consumers and high service levels for our customers. We are committed to meeting the...

  • Page 52
    ... consumer-focused strategies and execution in the marketplace, Management initiated a reorganisation of the Global Brands and Global Sales structures. The Group will release the full details on its updated strategies at the end of March 2015. see Glossary, p. 258 adidas Group / 2014 Annual Report

  • Page 53
    .../ Global Sales Strategy Global Sales drives the commercial performance of the adidas Group by building brand desire and by consistently meeting consumer needs across all touch points. Global Sales is responsible for all commercial activities of the adidas and Reebok brands. In 2014, we reviewed our...

  • Page 54
    Group Management Report - Our Group Global Sales Strategy / 02.2 / short-term fundamentals of the business have changed materially due to the rapid depreciation of the Russian rouble in 2014 and the considerable risk of further deterioration in consumer spending. Therefore, we have and will ...

  • Page 55
    ... include sporting goods chains, department stores, buying groups, lifestyle retail chains, e-tailers and franchisees. We will focus our joint efforts on early trend identification, joint campaign planning, shared inventories and seamless consumer journeys. A key emphasis will be on the execution at...

  • Page 56
    Group Management Report - Our Group Global Sales Strategy / / 02.2 / Focus on key cities: Global metropolises such as London, Paris, New York, Los Angeles, Shanghai or Tokyo play a key role in setting consumer trends. We have therefore developed a detailed omni-channel action plan for key cities ...

  • Page 57
    ... products and generating communication strategies that connect with their target consumer in an engaging and compelling way. Driving the long-term development of adidas and Reebok To secure long-term sustainable growth for the adidas Group, Global Brands is focused on driving the development...

  • Page 58
    ... a true global brand with German roots, adidas' mission is to be the best sports brand in the world. One major lever to achieve this is the brand's broad and unique sports product portfolio, with expertise spanning from footwear, apparel and equipment for professional athletes to premium fashion. It...

  • Page 59
    ...adidas Sport Performance products. Football, running and basketball are our key strategic categories. However, to underline our credibility as the multi-sport specialist and leverage our brand strength, adidas also supports a wide range of other sports and sports activities such as training, outdoor...

  • Page 60
    ...of the brand in the sports lifestyle market. Understanding the multi-facets of fitness, from running to yoga, Reebok applies a category-specific approach. The key categories, called 'The House of Fitness', address this diversity: Training, Studio, Reebok's newest business Combat Training, Classics...

  • Page 61
    ... Management Report - Our Group Global Brands Strategy / 02.3 / At adidas, the brand innovates through a focus on key performance benefits. The R&D focus is on cushioning and energy solutions, lightweight, body temperature management and digital sports technologies as well as sustainable product...

  • Page 62
    ... Management Report - Our Group Global Brands Strategy / 02.3 / Marketing and communication leadership adidas and Reebok are focused on creating inspirational and innovative marketing capabilities that build brand equity and consumer advocacy. A key tenet of our marketing and communication strategy...

  • Page 63
    ..., fashion leaders and artists to amplify activations and product validation in the lifestyle category, with ambassadors such as Kendrick Lamar and Melody Ehsani. see Picture 09 59 20 14 see Picture 10 09 / adidas FIFA World Cup 10 / Reebok CrossFit Games adidas Group / 2014 Annual Report

  • Page 64
    ...Reebok-CCM Hockey segments. Each of these segments has its own strategy in place in order to address its specific target groups directly and further expand its market share. TaylorMade-adidas Golf Strategy TaylorMade-adidas Golf's mission is to be the world's leading golf company in terms of sales...

  • Page 65
    ... in a ball which has been specially engineered to promote more shot-stopping spin control for the average amateur. / adidas Golf: A key component of adidas Golf's strategy is creating innovative products that are targeted to an athletic, competitive-minded golfer who is seeking a performance edge in...

  • Page 66
    ... Management Report - Our Group Other Businesses Strategy / TaylorMade-adidas Golf Strategy / 02.4 / Majors Series Apparel Collection which was the brand's marketing focus in 2014, featuring a series of limited-edition golf shirts designed to commemorate the major victories of six of the company...

  • Page 67
    ... our golf segment global workforce by 15% and integrating Adams Golf into TaylorMade's offices in Carlsbad, California, to optimise efficiency and ensure product alignment. / Increased focus on direct-to-consumer business going forward. see Glossary, p. 258 adidas Group / 2014 Annual Report

  • Page 68
    ...Reebok-CCM Hockey's strategy is to increase market share by leveraging its performance positioning and dedication to innovate for the leading athletes in the sport. Focus on high-end performance Reebok-CCM Hockey's primary goal is to lead in the high-end performance segment of the ice hockey market...

  • Page 69
    ...performance positioning in the sport. Through a commitment to product innovation, Reebok-CCM Hockey's pricing strategy is to focus on the premium price segments but also to have a strong presence in all key price tiers. 05 / CCM Tacks skate 06 / CCM RibCor sticks adidas Group / 2014 Annual Report

  • Page 70
    ... products in 2014. It is also planned to roll out OTIF to those markets that are currently not in scope, thereby increasing the overall share of adidas and Reebok products measured against 'on time' and 'in full'. 20 14 see Internal Group Management System, p. 98 adidas Group / 2014 Annual Report

  • Page 71
    ...-to-market process Global Operations Marketing Design Product Development Sourcing Supply Chain Management Sales Subsidiaries Briefing Concept Product creation Manufacturing Distribution Sales Centre of Excellence Processes and infrastructure of the future adidas Group / 2014 Annual Report

  • Page 72
    ... for footwear in 2014 and will be rolled out for apparel in 2015, thereby significantly reducing the production of physical product samples in the creation process. Strategic priority / Later ordering 68 20 14 see Glossary, p. 258 see Sustainability, p. 89 adidas Group / 2014 Annual Report

  • Page 73
    ... processes for adidas and Reebok footwear. see Global Brands Strategy, p. 53 see Global Brands Strategy, p. 53 Modernising the Group's infrastructure Global Operations continues to focus on building the required infrastructure, processes and systems to support the Group's growth plans...

  • Page 74
    ... of business, TaylorMade, Reebok-CCM Hockey, Adams Golf and the Sports Licensed Division are not serviced through Global Operations, but instead utilise their own purchasing organisations. In order to quickly seize short-term opportunities in their local market or react to trade regulations, Group...

  • Page 75
    Group Management Report - Our Group Global Operations / 02.5 / China remains largest source country for apparel In 2014, we sourced 93% of the total apparel volume for adidas, Reebok, adidas Golf and Ashworth from Asia (2013: 92%). Europe remained the second-largest apparel sourcing region, ...

  • Page 76
    Group Management Report - Our Group Global Operations / 02.5 / China share of hardware production declines In 2014, 78% of adidas and Reebok branded hardware products, such as balls and bags, was produced in Asia (2013: 79%). European countries accounted for 22% (2013: 21%). China remained our ...

  • Page 77
    ... our business objectives and our long-term sustainability ambitions. R&D an integral part of the product and user experience creation process R&D within the adidas Group follows a decentralised approach. In line with their strategic and long-term visions and distinctive positioning, each brand runs...

  • Page 78
    ... and integrating new materials and process technologies into software solutions to enable automated and ï¬,exible production solutions. More information on Speedfactory can be found on our website. www.adidas-group.com/en/group/stories/ adidas-future-manufacturing adidas Group / 2014 Annual Report

  • Page 79
    Group Management Report - Our Group Research and Development / 02.6 / In 2014, Reebok maintained its long-term biomechanics research relationships with Arizona State University and the University of Las Vegas. R&D of Reebok hard goods equipment in partnership with Loughborough University also ...

  • Page 80
    Group Management Report - Our Group Research and Development / 02.6 / R&D expenses at prior year level R&D expenses include expenses for personnel and administration, but exclude other costs, for example those associated with the design aspect of the product creation process. In 2014, as in prior ...

  • Page 81
    Group Management Report - Our Group Research and Development / 02.6 / Successful product launches across all major adidas categories In 2014, adidas sales were again driven by the latest product offerings, with products launched during the course of the year accounting for 78% of brand sales (2013...

  • Page 82
    ... and position their design until it is just right, with the ability to then save and share their designs on social networks and more. More information on these and other products can be found in the Global Brands Strategy section. see Global Brands Strategy, p. 53 adidas Group / 2014 Annual Report

  • Page 83
    Group Management Report - Our Group Research and Development / 02.6 / Reebok introduces new technology platforms In 2014, Reebok's latest products continued to generate the majority of Reebok's sales, with an estimated 73% of footwear sales coming from products launched in 2014 (2013: 59%). Only ...

  • Page 84
    Group Management Report - Our Group Research and Development / 02.6 / Reebok-CCM Hockey innovates in sticks and skates At Reebok-CCM Hockey, products launched in 2014 accounted for 60% of global sales (2013: 53%). Only 16% of sales were generated with products introduced three or more years ago (...

  • Page 85
    ..., developing new golf balls able to ï¬,y under lower spin conditions to maximise driver distance will also be a key part of TaylorMade-adidas Golf's research efforts in 2015. Reebok-CCM Hockey R&D efforts will focus on introducing new technologies and, at the same time, advancing existing product...

  • Page 86
    ... Group's strategic targets In 2014, adidas Group Human Resources continued to drive organisational strategies through its initiatives and programmes comprising four strategic areas of focus: 'Leadership', 'People', 'Capabilities' and 'Efficiencies'. 2015 activity will focus on sustaining existing...

  • Page 87
    ...months of work experience within the adidas Group. At the end of 2014, we employed 524 interns in Germany (2013: 532). 83 20 14 01 / Development and training framework Talent Development 'Fit for Tomorrow' Executive Manager Executive Development Programme (EDP) Management Development Programme...

  • Page 88
    ...Performance management: To further drive a high-performance culture within the adidas Group, we use a performance management approach called 'The Score'. It brings target setting, employee development and performance appraisal under one common process. While building on our key values of performance...

  • Page 89
    ... Female Average age of employees (in years) 2) Average length of service (in years) 1) Figures reï¬,ect continuing operations as a result of the planned divestiture of the Rockport business. 2) At year-end. 53,731 50% 50% 72% 28% 30 5 49,808 51% 49% 72% 28% 30 4 adidas Group / 2014 Annual Report

  • Page 90
    ... and advise other women, and promote female career development across the company. Following the Supervisory Board election in 2014, the number of female Supervisory Board members increased from two members to four. Additional diversity initiatives include: / The adidas Group is an active member of...

  • Page 91
    ...the Rockport business. 2) Number of employees on a headcount basis. 3) Number of employees on a full-time equivalent basis. Due to the high share of part-time employees in our Retail segment, this figure is lower than the number of employees counted on a headcount basis. adidas Group / 2014 Annual...

  • Page 92
    ... emerging markets globally. An overview of the development of our employee base in the past ten years can be found in our ten-year overview. On a full-time equivalent basis, our Group had 45,917 employees on December 31, 2014 (2013: 42,758). Due to the high share of employees working on a part-time...

  • Page 93
    ... corporate values as well as those that society expects of global businesses. These standards follow International Labour Organization (ILO) and United Nations conventions relating to human rights and employment practices, as well as the model code of conduct of the World Federation of the Sporting...

  • Page 94
    ...www.adidas-group.com/s/standards-and-policies see Table 01 see Internal Group Management System, p. 98 90 During 2014, we conducted 1,299 factory visits (2013: 1,489 visits) involving different types of audits, trainings and meetings with factory management as well as employees at various levels...

  • Page 95
    ... that good management systems help factories improve their day-to-day operations, support the process of self-governance and continuously enhance their social and environmental performance. We help them build and strengthen human resources systems to maintain proper working conditions, including...

  • Page 96
    ... SEA team. They include activities at Group headquarters, relief operations and projects in suppliers' countries. For more information please see our website. Strategic pillar / People Community engagement www.adidas-group.com/s/community-engagement Sustainability in our product creation process...

  • Page 97
    ... system, the bluefinder. With this, our suppliers select best-in-class chemicals, so that they can produce materials using chemicals that are included in the database. www.bettercotton.org www.adidas-group.com/s/product-materials see Glossary, p. 258 93 20 14 adidas Group / 2014 Annual Report

  • Page 98
    ... adidas Group's workforce is located at these sites. Further information can be found on our website. Strategic pillar / Planet Environmental management at own sites www.adidas-group.com/s/green-company Driving environmental improvements in our supply chain In our supply chain, activities focus...

  • Page 99
    ... (DJSI), the world's first global sustainability index family tracking the performance of the leading sustainabilitydriven companies worldwide. In the sector 'Textiles, Apparel & Luxury Goods', adidas AG scored industry-best ratings in the categories Supply Chain Management, Product Stewardship and...

  • Page 100

  • Page 101
    ... VIE W GROUP MANAGEMENT REPORT 03.1 03.2 03.3 03.4 03.5 03.6 Internal Group Management System Group Business Per formance Economic and Sector Development Income Statement Statement of Financial Position and Statement of Cash Flows Treasury Financial Statements and Management Report of adidas AG...

  • Page 102
    ... Group's sales and gross margin include: / Optimising our product mix. / Minimising clearance activities. / Improving the quality of distribution, with a particular focus on controlled space. / Realising supply chain efficiency initiatives. see Glossary, p. 258 adidas Group / 2014 Annual Report

  • Page 103
    ... the Days of Sales Outstanding (DSO) and improve the ageing of accounts receivable. Likewise, we strive to optimise payment terms with our suppliers to best manage our accounts payable. adidas Group financial KPIs / Change in operating working capital 99 20 14 adidas Group / 2014 Annual Report

  • Page 104
    ...intent. These efforts are supported by global market research and consumer insight teams. 100 20 14 see Management Assessment of Performance, Risks and Opportunities, and Outlook, p. 181 02 / Key financial metrics Gross profit Net sales Average operating working capital Net sales Gross margin...

  • Page 105
    Group Management Report - Financial Review Internal Group Management System / 03.1 / Backlogs and sell-through data: To manage demand planning and anticipate our future performance, backlogs comprising orders received up to nine months in advance of the actual sale are monitored closely. However, ...

  • Page 106
    ..., while at the same time highlighting relevant information around short-term business events and volatilities. All target-setting is fully embedded into the integrated planning process and communicated in advance of all relevant business milestones. 102 20 14 adidas Group / 2014 Annual Report

  • Page 107
    2 Group Management Report - Financial Review Group Business Performance / Economic and Sector Development / 03.2 / Group Business Performance In 2014, adidas Group results were significantly impacted by a challenging golf market, negative currency effects and a weakening of consumer sentiment in ...

  • Page 108
    ...opportunities across mobile technologies and social media. From a category perspective, basketball continued to enjoy strong momentum, while running grew at a slower pace but with modest improvements at year-end. Activities relating to the 2014 FIFA World Cup supported sales momentum in the football...

  • Page 109
    ...performance of the US team during the FIFA World Cup helped fuel strong football sales. Basketball footwear as well as apparel continued to be in strong demand, outperforming casual footwear and outdoor products. While the golf market was challenging through major parts of the year, as excess supply...

  • Page 110
    ...23, 2015, the adidas Group entered into a definitive agreement to sell its Rockport operating segment to a new entity formed by Berkshire Partners and New Balance as part of ongoing efforts to better focus on our core activities. The transaction, which is subject to customary closing conditions, is...

  • Page 111
    ... Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / Group sales increase driven by strong growth in Wholesale and Retail In 2014, currency-neutral Wholesale revenues increased 6%. While sales at adidas grew at a mid-single-digit rate, revenues at Reebok...

  • Page 112
    Group Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / Currency-neutral Group sales up in footwear and apparel In 2014, currency-neutral footwear sales increased 5%, mainly due to double-digit sales growth in the running category and at adidas NEO. Sales ...

  • Page 113
    Group Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / In 2014, cost of sales was â,¬ 7.610 billion, representing an increase of 6% compared to â,¬ 7.202 billion in 2013. This development was due to the growth of our business as well as increases in input...

  • Page 114
    ...Group's sell-through development. Expenditures relate to advertising and promotion initiatives at the point of sale as well as store furniture and fixtures. As sales working budget expenses are channel specific, they are allocated to the Group's operating segments. In absolute terms, sales working...

  • Page 115
    ... versus the prior year level of 49,808. New hirings related to the expansion of the Group's own-retail store base were the main driver of this development. On a full-time equivalent basis, the number of employees increased 7% to 45,917 at the end of 2014 (2013: 42,758). see Employees, p. 82 EBITDA...

  • Page 116
    Group Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / Goodwill impairment in an amount of â,¬ 78 million As a result of the annual impairment test, the adidas Group has impaired goodwill and recorded a â,¬ 78 million pre-tax charge as at December 31, ...

  • Page 117
    Group Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / Income before taxes excluding goodwill impairment down 22% Income before taxes (IBT) for the adidas Group decreased 25% to â,¬ 835 million from â,¬ 1.113 billion in 2013. IBT as a percentage of sales ...

  • Page 118
    Group Management Report - Financial Review Group Business Performance / Income Statement / 03.2 / Net income attributable to shareholders excluding goodwill impairment down 32% The Group's net income attributable to shareholders, which in addition to net income from continuing operations includes ...

  • Page 119
    ...Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / Statement of Financial Position and Statement of Cash Flows Accounting policy The Group's consolidated financial statements are prepared in accordance with the International...

  • Page 120
    Group Management Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / Assets At the end of December 2014, total assets increased 7% to â,¬ 12.417 billion versus â,¬ 11.599 billion in the prior year, as a result of an increase ...

  • Page 121
    Group Management Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / instruments. Other current assets decreased 16% to â,¬ 425 million at the end of December 2014 from â,¬ 506 million in 2013, mainly due to the decrease in ...

  • Page 122
    ... Management Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / Liabilities and equity Total current liabilities decreased 7% to â,¬ 4.378 billion at the end of December 2014 from â,¬ 4.732 billion in 2013. Accounts payable...

  • Page 123
    Group Management Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / Total non-current liabilities increased 75% to â,¬ 2.422 billion at the end of December 2014 from â,¬ 1.386 billion in the prior year. Long-term borrowings ...

  • Page 124
    Group Management Report - Financial Review Group Business Performance / Statement of Financial Position and Statement of Cash Flows / 03.2 / Liquidity analysis In 2014, net cash generated from operating activities increased to â,¬ 701 million (2013: â,¬ 634 million). Net cash generated from ...

  • Page 125
    Group Management Report - Financial Review Group Business Performance / Treasury / 03.2 / Off-balance sheet items The Group's most significant off-balance sheet items are commitments for promotion and advertising as well as operating leases, which are related to own-retail stores, offices, ...

  • Page 126
    ...Group's global cash management and payment processes, including automated domestic and cross-border cash pools, is a key priority for Group Treasury. In 2014, we successfully implemented a new in-house bank module in order to further automate intra-Group settlements. see Risk and Opportunity Report...

  • Page 127
    ...) < 1 year 1 to 3 years 3 to 5 years > 5 years Total â- 2014 â- 2013 1,615 123 971 990 3,699 2,207 193 960 0 3,360 49 / Bilateral credit lines (â,¬ in millions) 2014 2013 Committed Uncommitted Total â- 2014 â- 2013 235 1,285 1,520 370 1,282 1,652 adidas Group / 2014 Annual Report 14

  • Page 128
    Group Management Report - Financial Review Group Business Performance / Treasury / 03.2 / Gross borrowings increase Gross borrowings increased 40% to â,¬ 1.873 billion at the end of 2014 from â,¬ 1.334 billion in the prior year. This increase is mainly due to the issuance of two Eurobonds with an ...

  • Page 129
    ... Q1 2014 Q1 2013 1) At end of period. 54 / 2014 2013 2012 2011 2010 Interest rate development 1) (in %) 3.1 3.8 4.4 4.9 5.1 55 / 2014 2013 2012 2011 2010 Financial leverage (in %) 3.3 (5.4) (8.5) (1.7) 4.8 1) Weighted average interest rate of gross borrowings. adidas Group / 2014 Annual Report

  • Page 130
    Group Management Report - Financial Review Group Business Performance / Treasury / 03.2 / 56 / Financing structure 1) (â,¬ in millions) 2014 2013 Cash and short-term financial assets Bank borrowings Commercial paper Private placements Eurobond Convertible bond Gross total borrowings Net cash 1)...

  • Page 131
    ...Management Report of adidas AG / 03.2 / Financial Statements and Management Report of adidas AG adidas AG is the parent company of the adidas Group. It includes operating business functions, primarily for the German market, as well as corporate headquarter functions such as Global Marketing, Group...

  • Page 132
    Group Management Report - Financial Review Group Business Performance / Financial Statements and Management Report of adidas AG / 03.2 / 59 / adidas AG net sales 1) (â,¬ in millions) 2014 2013 Royalty and commission income adidas Germany Foreign subsidiaries Y-3 Other revenues Total 1) Rounding ...

  • Page 133
    Group Management Report - Financial Review Group Business Performance / Financial Statements and Management Report of adidas AG / 03.2 / Financial result improves strongly The financial result of adidas AG improved to â,¬ 128 million in 2014 from â,¬ 43 million in 2013. This increase is due to ...

  • Page 134
    ... Management Report - Financial Review Group Business Performance / Financial Statements and Management Report of adidas AG / 03.2 / Total assets increase 11% At the end of December 2014, total assets grew 11% to â,¬ 7.415 billion compared to â,¬ 6.694 billion in the prior year. This was mainly...

  • Page 135
    ...on the Code of Conduct in conjunction with an internal guideline of adidas AG, however, particular lock-up periods do exist for members of the Executive Board with regard to the purchase and sale of adidas AG shares. These lock-up periods are connected with the publication of quarterly and full year...

  • Page 136
    Group Management Report - Financial Review Group Business Performance / Disclosures pursuant to § 315 Section 4 and § 289 Section 4 of the German Commercial Code / 03.2 / The Supervisory Board may revoke the appointment of an individual as member of the Executive Board or CEO for good cause, ...

  • Page 137
    Group Management Report - Financial Review Group Business Performance / Disclosures pursuant to § 315 Section 4 and § 289 Section 4 of the German Commercial Code / 03.2 / Contingent Capital / The nominal capital of the company is conditionally increased by up to â,¬ 36,000,000 (Contingent ...

  • Page 138
    ... Management Report - Financial Review Group Business Performance / Disclosures pursuant to § 315 Section 4 and § 289 Section 4 of the German Commercial Code / 03.2 / Authorisation of the Executive Board to repurchase shares The authorisations of the Executive Board to repurchase adidas AG shares...

  • Page 139
    ... May 8, 2014, the Executive Board is furthermore authorised to conduct the share buyback also by using equity derivatives which are arranged with a credit institution or financial services institution in close conformity with market conditions. adidas AG may acquire call options issued for physical...

  • Page 140
    ... Management Report - Financial Review Business Performance by Segment / Wholesale Business Performance / 03.3 / Business Performance by Segment The adidas Group has divided its operating activities into Wholesale, Retail and Other Businesses. The Wholesale segment comprises the adidas and Reebok...

  • Page 141
    Group Management Report - Financial Review Business Performance by Segment / Wholesale Business Performance / 03.3 / Segmental operating expenses in Wholesale primarily relate to sales working budget expenses as well as expenditure for sales force, administration and logistics. In euro terms, ...

  • Page 142
    Group Management Report - Financial Review Business Performance by Segment / Wholesale Business Performance / 03.3 / Wholesale development by brand In 2014, adidas Sport Performance wholesale revenues grew 6% on a currency-neutral basis. This development was mainly driven by double-digit sales ...

  • Page 143
    Group Management Report - Financial Review Business Performance by Segment / Retail Business Performance / 03.3 / Retail Business Performance Retail full year results In 2014, Retail revenues increased 21% on a currency-neutral basis as a result of double-digit sales growth at both adidas and ...

  • Page 144
    ... in euro terms. see Table 09 Retail development by brand In 2014, adidas Group Retail sales increased at a double-digit rate at both adidas and Reebok. Currency-neutral adidas Sport Performance revenues grew 22% in the period, mainly due to doubledigit growth in the football, training and running...

  • Page 145
    Group Management Report - Financial Review Business Performance by Segment / Retail Business Performance / 03.3 / Retail development by store format Concept store revenues include sales from adidas and Reebok concept stores. In 2014, concept store revenues grew 20% on a currency-neutral basis, as ...

  • Page 146
    ... 1,746 851 316 2,913 1,661 779 300 2,740 16 / Retail number of stores development Total Concept stores Factory outlets Concession corners 2013 Opened Closed Opened (net) 2014 2,740 409 236 173 2,913 1,661 251 166 85 1,746 779 126 54 72 851 300 32 16 16 316 adidas Group / 2014 Annual Report

  • Page 147
    ...-adidas Golf. Sales at Reebok-CCM Hockey grew at a high-singledigit rate, and revenues of Other Centrally Managed Brands increased at a double-digit rate. Currency translation effects negatively impacted revenues in euro terms. Sales of Other Businesses declined 21% to â,¬ 1.316 billion (2013...

  • Page 148
    ... Golf Reebok-CCM Hockey Other Centrally Managed Brands 1) Figures reï¬,ect continuing operations as a result of the planned divestiture of the Rockport business. 1) Figures reï¬,ect continuing operations as a result of the planned divestiture of the Rockport business. adidas Group / 2014 Annual...

  • Page 149
    Group Management Report - Financial Review Business Performance by Segment / Other Businesses Performance / 03.3 / Currency-neutral Reebok-CCM Hockey sales were up 7%. This increase is mainly due to growth in key categories such as sticks and protective equipment as well as in hockey apparel. ...

  • Page 150
    ... of new and innovative products at all brands and the positive effects from increased brandbuilding activities, tight control of inventory levels and strict cost management, we project top- and bottom-line improvements in our Group's financial results in 2015. We forecast adidas Group sales to...

  • Page 151
    ... e.g. Brazil and Argentina, where currency ï¬,uctuations and the unfavourable job market conditions with its negative implications for household consumption will drive the forecasted decline in economic activity. 20 14 1) Sources: World Bank, HSBC Global Research. adidas Group / 2014 Annual Report

  • Page 152
    Group Management Report - Financial Review Subsequent Events and Outlook / 03.4 / Sporting goods industry expansion to continue in 2015 In the absence of any major economic shocks, we expect the global sporting goods industry to grow at a low- to mid-single-digit rate in 2015, in spite of the non-...

  • Page 153
    ... at a high-single-digit rate, as we expect the strong sales momentum to continue in 2015, with both brands contributing to the increase. This development will be supported by further expanding and solidifying our distribution footprint in the market. In Russia/CIS, the low level of consumer con...

  • Page 154
    ... rate In 2015, revenues of Other Businesses are expected to increase at a double-digit rate on a currencyneutral basis, driven by double-digit currency-neutral sales increases at TaylorMade-adidas Golf. After a year characterised by high inventory levels and discounting activities, TaylorMade-adidas...

  • Page 155
    ...in 2014. We expect the number of employees within the adidas Group to increase versus the prior year level. The adidas Group will continue to spend around 1% of Group sales on research and development in 2015. Areas of particular focus include cushioning and energy solutions, lightweight and digital...

  • Page 156
    ...Management Report - Financial Review Subsequent Events and Outlook / 03.4 / Capital expenditure of around â,¬ 600 million In 2015, capital expenditure is expected to increase to a level of around â,¬ 600 million (2014: â,¬ 554 million). Investments will mainly focus on adidas and Reebok controlled...

  • Page 157
    Group Management Report - Financial Review Subsequent Events and Outlook / 03.4 / 03 / Product Major 2015 product launches Brand A totally new F50 football boot Newly designed Predator Nitrocharge and 11 Pro football boots New F50 Messi football boot Ultra Boost running shoe Supernova Glide 7 ...

  • Page 158
    ... well as company and management culture of the adidas Group. This system focuses on the identification, evaluation, handling, monitoring and reporting of risks and opportunities. The key objective of the risk and opportunity management system is to protect and further grow shareholder value through...

  • Page 159
    ... an internal perspective that considers processes, projects, human resources and compliance aspects. 155 20 14 01 / adidas Group risk and opportunity management system Supervisory and Executive Boards Group Risk Management Risk Management Policy & Methodology/Support Monitoring & Reporting...

  • Page 160
    ... as well as allocation of resources. Risk and opportunity evaluation is also part of the Risk Owners' responsibility. The Group Risk Management department supports and guides the Risk Owners in the evaluation process. According to our risk and opportunity management methodology, risks and...

  • Page 161
    ...opportunities are subject to constant change, Risk Owners not only monitor developments but also the adequacy and effectiveness of the current risk handling strategy on an ongoing basis. Regular risk reporting consists of a two-step reporting stream supported and facilitated by a globally used Group...

  • Page 162
    ... work and is available both on our website and on our intranet. The Code of Conduct is the cornerstone of our compliance management programme which is founded on three pillars: prevention, detection and response. see Legal & Compliance Risks, p. 170 158 20 14 adidas Group / 2014 Annual Report

  • Page 163
    ... HR manager or the Works Council) or externally via an independent, confidential reporting hotline and email service. The hotline (Fair Play hotline) is available around the clock, seven days a week and can be called free of charge in over 60 countries worldwide. In addition, our Group Internal...

  • Page 164
    Group Management Report - Financial Review Risk and Opportunity Report / 03.5 / Description of the main features of the internal control and risk management system relating to the consolidated financial reporting process pursuant to § 315 section 2 no. 5 German Commercial Code (Handelsgesetzbuch...

  • Page 165
    Group Management Report - Financial Review Risk and Opportunity Report / 03.5 / The accounting for Group companies is conducted either locally or by an adidas Group Shared Service Centre. Most of the IT ERP systems used are based on a Group-wide standardised SAP system. Some Group companies use ...

  • Page 166
    Group Management Report - Financial Review Risk and Opportunity Report / 03.5 / This report focuses on what we perceive as the Group's material risks with the exception of interest rate risks and financing and liquidity risks. Material risks are all risks which were assessed with a major impact ...

  • Page 167
    ...by regular employee training (e.g. Code of Conduct, anti-trust, workplace safety, etc.). We also document key business processes to create transparency and enable the implementation of proper control mechanisms. 20 Risks related to risk and control environment adidas Group / 2014 Annual Report 14

  • Page 168
    Group Management Report - Financial Review Risk and Opportunity Report / Strategic Risks / 03.5 / Risks related to media and stakeholder activities The adidas Group faces considerable risk if we are unable to uphold high levels of consumer awareness, affiliation and purchase intent for our brands...

  • Page 169
    ... Group's business performance. Losing important customers in key markets due to sub-par relationship management would result in significant sales shortfalls. In a few individual markets, we work with distributors or strategic partners whose approach might differ from our own distribution practices...

  • Page 170
    .... Furthermore, we run multiple training initiatives for own-retail employees at all levels, from store assistant to top management. At the same time, we constantly monitor staff turnover and actively manage succession and career development to reduce attrition. adidas Group / 2014 Annual Report

  • Page 171
    ... plans to quickly recover business activities in order to minimise potential negative effects. IT risks Key business processes, including product marketing, order management, warehouse management, invoice processing, customer support and financial reporting, are all dependent on IT systems...

  • Page 172
    ...Internal Group Management System, p. 98 see Global Operations, p. 66 168 20 14 Marketing risks Flawless execution of marketing activities is critical to the success of the Group and its brands. Therefore, unaligned product creation, range development, go-to-market or brand communication processes...

  • Page 173
    ... and development processes to speed up the time to market. Stringent product life cycle management enables us to keep our product offering fresh and cutting-edge. see Research and Development, p. 73 Logistics risks As a global company with business operations in numerous countries, the Group...

  • Page 174
    ... and provide subject-matter training to our employees (e.g. competition law training). In addition, our internal legal, customs or tax departments advise our operational management teams to ensure appropriate and compliant business practices. Furthermore, we work closely with customs authorities and...

  • Page 175
    Group Management Report - Financial Review Risk and Opportunity Report / Financial Risks / 03.5 / Risks related to product counterfeiting and imitation As popular consumer brands which rely on technological and design innovation as defining characteristics, the Group's brands are frequent targets...

  • Page 176
    ... market interest rates could trigger increases in discount rates used in our impairment test for goodwill and require impairment charges. An impairment charge would be a purely accounting, non-cash effect impacting the Group's operating result. see Note 02, p. 197 adidas Group / 2014 Annual Report

  • Page 177
    Group Management Report - Financial Review Risk and Opportunity Report / Financial Risks / 03.5 / 04 / Exposure to foreign exchange risk 1) (based on notional amounts, â,¬ in millions) USD RUB GBP JPY As at December 31, 2014 Exposure from firm commitments and forecasted transactions Balance ...

  • Page 178
    Group Management Report - Financial Review Risk and Opportunity Report / Financial Risks / 03.5 / Credit risks A credit risk arises if a customer or other counterparty to a financial instrument fails to meet its contractual obligations. The adidas Group is exposed to credit risks from its ...

  • Page 179
    Group Management Report - Financial Review Risk and Opportunity Report / Financial Risks / 03.5 / The Group Treasury department arranges currency, commodity and interest rate hedges, and invests cash, with major banks of a high credit standing throughout the world. adidas Group companies are ...

  • Page 180
    Group Management Report - Financial Review Risk and Opportunity Report / Financial Risks / 03.5 / Interest rate risks Changes in global market interest rates affect future interest payments for variable-interest liabilities. As the Group does not have material variable-interest liabilities, signi...

  • Page 181
    ... department uses an efficient cash management system to manage liquidity risk. At December 31, 2014, Group cash and cash equivalents together with marketable securities amounted to â,¬ 1.688 billion (2013: â,¬ 1.629 billion). Moreover, our Group maintains â,¬ 1.520 billion bilateral credit lines...

  • Page 182
    .... New activities and categories: Exploiting the potential of emerging, fast-growing sports categories is another organic growth opportunity for our brands. Our brand teams conduct market research and engage in trend marketing to detect changes in the lifestyle and consumer needs of our target...

  • Page 183
    ... in research and development, designers in the fashion industry, other brands and non-traditional sporting goods retailers. These partnerships have generated multiple new growth avenues for the Group, as we have acquired product or process know-how and gained access to new distribution channels or...

  • Page 184
    Group Management Report - Financial Review Risk and Opportunity Report / Financial Opportunities / 03.5 / Personnel opportunities The recruitment of highly qualified talent as well as the training and development of our employees, in particular for our own-retail segment, may help us to increase ...

  • Page 185
    ... of sales increased versus the prior year and thus exceeded our initial expectations. see Table 01 see Economic and Sector Development, p. 103 181 20 14 see Income Statement, p. 106 see Statement of Financial Position and Statement of Cash Flows, p. 115 adidas Group / 2014 Annual Report

  • Page 186
    ...best ratings in the categories 'Supply Chain Management', 'Product Stewardship' and 'Stakeholder Engagement' in the sector 'Textiles, Apparel & Luxury Goods'. see Internal Group Management System, p. 98 see Global Operations, p. 66 see Research and Development, p. 73 182 20 14 see Sustainability...

  • Page 187
    ... and Opportunity Report, p. 154 Assessment of financial outlook In November 2010, the Group unveiled its 2015 strategic business plan named 'Route 2015', which defined strategies and objectives for the period up to 2015. In 2014, mainly due to the continued weakness in the golf market, negative...

  • Page 188

  • Page 189
    ... Income Statement Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equit y Consolidated Statement of Cash Flows Notes Notes to the Consolidated Statement of Financial Position Notes to the Consolidated Income Statement Notes - Additional Information Statement of...

  • Page 190
    ... the Management Report of adidas AG, includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group. Herzogenaurach, February 13, 2015...

  • Page 191
    ...the accounting-related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the Group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements...

  • Page 192
    ... Statement of Financial Position .. / adidas AG Consolidated Statement of Financial Position (IFRS) (â,¬ in millions) Note Dec. 31, 2014 Dec. 31, 2013 Change in % ASSETS Cash and cash equivalents Short-term financial assets Accounts receivable Other current financial assets Inventories...

  • Page 193
    Consolidated Financial Statements Consolidated Statement of Financial Position / 04.3 / .. / adidas AG Consolidated Statement of Financial Position (IFRS) (â,¬ in millions) Note Dec. 31, 2014 Dec. 31, 2013 Change in % LIABILITIES AND EQUITY Short-term borrowings Accounts payable Other current ...

  • Page 194
    ...â,¬) Diluted earnings per share from continuing and discontinued operations (in â,¬) Rounding differences may arise in percentages and totals. The accompanying notes are an integral part of these consolidated financial statements. 35 35 35 35 2.67 2.67 2.35 2.35 adidas Group / 2014 Annual Report

  • Page 195
    ... effect. Rounding differences may arise in percentages and totals. The accompanying notes are an integral part of these consolidated financial statements. 496 790 24 (57) (57) 5 5 29 211 104 315 258 754 749 5 (13) (309) (322) (317) 473 467 6 191 20 14 adidas Group / 2014 Annual Report

  • Page 196
    ...ned benefit plans (IAS 19), share option plans and acquisition of shares from non-controlling interest shareholders. Rounding differences may arise in percentages and totals. The accompanying notes are an integral part of these consolidated financial statements. adidas Group / 2014 Annual Report

  • Page 197
    ...Financial Statements Consolidated Statement of Changes in Equity / 04.6 / Cumulative currency translation differences Hedging reserve Other reserves 1) Retained earnings Shareholders' equity Non-controlling interests Total equity... 20 14 (4) (7) (318) 5,618 adidas Group / 2014 Annual Report

  • Page 198
    7 Consolidated Financial Statements Consolidated Statement of Cash Flows / 04.7 / Consolidated Statement of Cash Flows .. / adidas AG Consolidated Statement of Cash Flows (IFRS) (â,¬ in millions) Note Year ending Dec. 31, 2014 Year ending Dec. 31, 2013 Operating activities: Income before taxes ...

  • Page 199
    ...Group' or the 'Group') design, develop, produce and market a broad range of athletic and sports lifestyle products. The operating activities of the adidas Group are divided into six operating segments: Wholesale, Retail, TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey and Other Centrally Managed...

  • Page 200
    .... The consolidated financial statements are presented in euros (â,¬) and, unless otherwise stated, all values are presented in millions of euros (â,¬ in millions). Due to rounding principles, numbers presented may not sum up exactly to totals provided. 196 20 14 adidas Group / 2014 Annual Report

  • Page 201
    ... is directly recorded in shareholders' equity. The financial effects of intercompany transactions as well as any unrealised gains and losses arising from intercompany business relations are eliminated in preparing the consolidated financial statements. 197 20 14 adidas Group / 2014 Annual Report

  • Page 202
    ... exchange rates on the transaction dates. All cumulative differences from the translation of equity of foreign subsidiaries resulting from changes in exchange rates are included in a separate item within shareholders' equity without affecting the income statement. adidas Group / 2014 Annual Report

  • Page 203
    Consolidated Financial Statements Notes / 04.8 / A summary of exchange rates to the euro for major currencies in which the Group operates is as follows: Exchange rates (â,¬ 1 equals) Average rates for the year ending Dec. 31, Spot rates at Dec. 31, 2014 2013 2014 2013 USD GBP JPY CNY RUB 1....

  • Page 204
    ... value, except where the 'declining-balance method' is more appropriate in light of the actual utilisation pattern. Parts of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item are depreciated separately. adidas Group / 2014 Annual...

  • Page 205
    ... losses for the associated assets are recognised. Depreciation is performed over the lease term or, if shorter, over the useful life of the asset. Under operating lease agreements, rent expenses are recognised on a straight-line basis over the term of the lease. adidas Group / 2014 Annual Report

  • Page 206
    ... value in use. This calculation uses cash ï¬,ow projections based on the financial planning covering a six-year period in total. The planning is based on long-term expectations of the adidas Group and reï¬,ects in total for the cash-generating units an average annual mid- to high-single-digit sales...

  • Page 207
    ... rate agreements for similar assets. Notional royalty savings beyond this period are extrapolated using steady growth rates of 1.7% (2013: 1.7%). The growth rates do not exceed the long-term average growth rate of the business to which the trademarks are allocated. adidas Group / 2014 Annual Report

  • Page 208
    ... are performed by qualified actuaries using the 'projected unit credit method' in accordance with IAS 19 'Employee Benefits'. Obligations for contributions to defined contribution plans are recognised as an expense in the income statement as incurred. adidas Group / 2014 Annual Report

  • Page 209
    ... company concerned will generate sufficient taxable income to realise the associated benefit. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. adidas Group / 2014 Annual Report

  • Page 210
    ... segment became concrete towards the end of 2014 and a divestiture within the next twelve months is considered as highly probable. For this reason, the Rockport operating segment is reported as discontinued operations at December 31, 2014. The focus and the strategic direction of the Group's brand...

  • Page 211
    .... 06 Short-term financial assets Short-term financial assets are classified 'at fair value through profit or loss'. Changes in the fair value are recognised in the income statement as they occur. The majority of short-term financial assets are time deposits. adidas Group / 2014 Annual Report

  • Page 212
    ... to sell the Rockport operating segment, assets amounting to â,¬ 49 million were transferred from 'Accounts receivable' to 'Assets classified as held for sale' at year-end 2014 / SEE NOTE 11. For further information about credit risks / SEE RISK AND OPPORTUNITY REPORT, P. 154. 08 Other current...

  • Page 213
    ... sale due to the concrete plans to sell the operating segment. The Rockport operating segment is part of Other Businesses. Impairment losses of â,¬ 104 million (before transaction costs) for write-downs of the disposal group Rockport to the lower of its carrying amount and its fair value less costs...

  • Page 214
    ... transferred from 'Property, plant & equipment' to 'Assets classified as held for sale' at year-end 2014 / SEE NOTE 11. For details see Attachment I to the consolidated financial statements / SEE STATEMENT OF MOVEMENTS OF INTANGIBLE AND TANGIBLE ASSETS, P. 246. adidas Group / 2014 Annual Report

  • Page 215
    ... allocated to the cash-generating unit Rockport was transferred to 'Assets held for sale' due to the concrete plans to sell the Rockport operating segment and is impaired completely in connection with the fair value measurement of the disposal group / SEE NOTE 11. adidas Group / 2014 Annual Report

  • Page 216
    ... plans to sell the Rockport operating segment and is impaired by â,¬ 68 million in connection with the fair value measurement of the disposal group / SEE NOTE 11. The reported other trademarks mainly relate to the brand names Ashworth, Adams Golf and Five Ten. The Group tests at least on an annual...

  • Page 217
    ...The weighted average interest rate on the Group's gross borrowings decreased to 3.1% in 2014 (2013: 3.8%). As at December 31, 2014, the Group had cash credit lines and other long-term financing arrangements totalling â,¬ 3.7 billion (2013: â,¬ 3.4 billion); thereof unused credit lines accounted for...

  • Page 218
    ... five years. The Eurobond with an annual coupon of 4.75% was repaid on July 14, 2014. Furthermore, on June 4, 2014, a private placement amounting to â,¬ 56 million was repaid. For further details on future cash outï¬,ows / SEE RISK AND OPPORTUNITY REPORT, P. 154. adidas Group / 2014 Annual Report

  • Page 219
    ... for customs risks and for litigation and other legal risks. All evidence from events until the preparation of the consolidated financial statements is taken into account. The transfers include reclassifications to 'Liabilities classified as held for sale'. adidas Group / 2014 Annual Report

  • Page 220
    ... Finance lease obligations Sundry Other non-current financial liabilities 2 - 7 0 9 / SEE NOTE 29. 11 2 9 0 22 For further information about currency options and forward exchange contracts about finance lease obligations / SEE NOTE 28. For information adidas Group / 2014 Annual Report

  • Page 221
    ...on final salary and service, and are paid out as a lump sum. The pension plan is subject to Japanese labour law. In the first six months of 2015, it is planned to transfer the liabilities from the defined benefit plan to a defined contribution plan. 217 20 14 adidas Group / 2014 Annual Report

  • Page 222
    ... countries (â,¬ in millions) Dec. 31, 2014 Dec. 31, 2013 Germany UK Japan Germany UK Japan Active members Former employees with vested rights Pensioners Total 178 49 78 305 - 50 4 54 15 - - 15 123 31 70 224 - 37 4 41 14 - - 14 The Group's pension plans are subject to risks from changes...

  • Page 223
    ... for members of the Executive Board of adidas AG in 2014 resulted in past service cost of â,¬ 1 million. The pension expense is mainly recorded within other operating expenses. The production-related part of the pension expenses is recognised within cost of sales. 219 20 14 Present value of the de...

  • Page 224
    ... August 2014, an amount of â,¬ 65 million in cash was transferred to the trustee. The cash has been invested in equity index funds, hybrid bonds, fixed interest rate bonds and money market funds. adidas AG does not intend to further fund the CTA in the 2015 financial year. Another part of the plan...

  • Page 225
    ... Capital 2013/I); until June 30, 2016 / by issuing new shares against contributions in kind once or several times by no more than â,¬ 25 million and, subject to Supervisory Board approval, to exclude shareholders' subscription rights (Authorised Capital 2013/II); adidas Group / 2014 Annual Report

  • Page 226
    ... the implementation of the contingent capital increase. The Executive Board of adidas AG did not issue shares from the Contingent Capital 2014 in the 2014 financial year or in the period beyond the balance sheet date up to and including February 13, 2015. adidas Group / 2014 Annual Report

  • Page 227
    ... company in the year under review and up to and including February 13, 2015 are available on the adidas Group website / WWW.ADIDAS-GROUP.COM/S/VOTING-RIGHTS-NOTIFICATIONS. The details on the percentage of shareholdings and voting rights may no longer be up to date. adidas Group / 2014 Annual Report

  • Page 228
    ...of Financial Position / 04.8 / Notified reportable shareholdings as at February 13, 2015 Notifying party Date of reaching, exceeding or falling below Reporting threshold Attributions in accordance with WpHG Shareholdings in % Number of voting rights BlackRock Financial Management, Inc., New York...

  • Page 229
    ... million). The Executive Board of adidas AG will propose to shareholders a dividend payment of â,¬ 1.50 per dividend-entitled share for the year 2014 to be made from retained earnings of â,¬ 307 million reported in the financial statements of adidas AG according to the German Commercial Code as at...

  • Page 230
    ... lease payments for minimum lease durations on a nominal basis are as follows: Minimum lease payments for operating leases (â,¬ in millions) Dec. 31, 2014 Dec. 31, 2013 Within 1 year Between 1 and 5 years After 5 years Total 476 959 277 1,711 447 945 277 1,669 adidas Group / 2014 Annual Report

  • Page 231
    ... long-term contracts. Financial commitments under these contracts mature as follows: Financial commitments for service arrangements (â,¬ in millions) Dec. 31, 2014 Dec. 31, 2013 Within 1 year Between 1 and 5 years After 5 years Total 75 101 18 193 89 99 28 216 adidas Group / 2014 Annual Report

  • Page 232
    ... Amortised cost Fair value recognised in equity Fair value recognised in net income Measurement according to IAS 17 Fair value Dec. 31, 2014 Financial assets Cash and cash equivalents Short-term financial assets Accounts receivable Other current financial assets Derivatives being part of a hedge...

  • Page 233
    ... Amortised cost Fair value recognised in equity Fair value recognised in net income Measurement according to IAS 17 Fair value Dec. 31, 2013 Financial assets Cash and cash equivalents Short-term financial assets Accounts receivable Other current financial assets Derivatives being part of a hedge...

  • Page 234
    ... within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3 is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs). adidas Group / 2014 Annual Report

  • Page 235
    ... value Type Valuation method Significant unobservable inputs Category Private placements The discounted cash ï¬,ow method is applied, which considers the present value of expected payments, discounted using a risk-adjusted discount rate. Not applicable FLAC adidas Group / 2014 Annual Report

  • Page 236
    ... million was reclassified from hedging reserves to the income statement. In the years ending December 31, 2014 and 2013, hedging instruments related to product sourcing were bought to hedge a total net amount of US $ 5.6 billion and US $ 5.2 billion, respectively. adidas Group / 2014 Annual Report

  • Page 237
    ... sold. As at December 31, 2014, no ineffective part of the hedges was recorded in the income statement. In order to determine the fair values of its derivatives that are not publicly traded, the adidas Group uses generally accepted quantitative financial models based on market conditions prevailing...

  • Page 238
    ... are directly assigned to the production costs. Other operating expenses (continuing operations) (â,¬ in millions) Year ending Dec. 31, 2014 Year ending Dec. 31, 2013 Marketing working budget Sales working budget Marketing overhead 1) Sales force 1) Logistics 1) Research and development 1) Central...

  • Page 239
    ... payments from investment funds as well as net interest payments from interest derivatives not being part of a hedging relationship. Unrealised gains/losses from fair value measurement of such financial assets are shown in other financial income or expenses. adidas Group / 2014 Annual Report

  • Page 240
    ... the Group's available-for-sale investments, borrowings and financial instruments is also included in these Notes / SEE NOTES 06, 15, 18 AND 29. 34 Income taxes adidas AG and its German subsidiaries are subject to German corporate and trade taxes. For the years ending December 31, 2014 and 2013...

  • Page 241
    ... ending Dec. 31, 2013 Current tax expenses Deferred tax income Income tax expenses 315 (43) 271 354 (14) 340 The deferred tax income includes tax income of â,¬ 24 million in total (2013: â,¬ 25 million) related to the origination and reversal of temporary differences. adidas Group / 2014 Annual...

  • Page 242
    ... average number of shares outstanding during the year, excluding ordinary shares purchased by the adidas Group and held as treasury shares. A dilutive effect from 6.06 million potential shares arising from the convertible bond does not apply in 2014 as the conversion right does not have any value...

  • Page 243
    ...and marketing of athletic and sports lifestyle products. Following the Group's internal management reporting and in accordance with the definition of IFRS 8 'Operating Segments', six operating segments have been identified: Wholesale, Retail, TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey and...

  • Page 244
    ... to the aggregate numbers of the consolidated financial statements, taking into account items which are not directly attributable to a segment or a group of segments. Net sales (non-Group) (â,¬ in millions) Year ending Dec. 31, 2014 Year ending Dec. 31, 2013 Reportable segments 13,218 1,599...

  • Page 245
    ... accounts receivable and inventories Current financial assets Other current assets Non-current assets Reclassification to assets classified as held for sale Total 3,744 846 4,590 22 2,086 789 5,070 (139) 12,417 3,661 749 4,410 33 1,811 603 4,742 - 11,599 adidas Group / 2014 Annual Report

  • Page 246
    ... starting 2015 in order to reï¬,ect the new internal management reporting. In the future, the management and reporting of the Group will no longer be split into Wholesale and Retail as well as Other Businesses, but into geographical markets and Other Businesses. adidas Group / 2014 Annual Report

  • Page 247
    ... and fitting of stores in the Retail segment, in new office buildings, warehouses and IT systems. Cash outï¬,ows from financing activities were mainly related to the dividend paid to shareholders of adidas AG and to the repurchase of treasury shares. Net cash generated from discontinued...

  • Page 248
    ... agreed conditions. 40 Other information Employees The average numbers of employees are as follows: Employees Year ending Dec. 31, 2014 Year ending Dec. 31, 2013 Own retail Sales Logistics Marketing Central administration Production Research and development Information technology Total 14...

  • Page 249
    ... Compensation Report / SEE COMPENSATION REPORT, P. 28. 41 Information relating to the German Corporate Governance Code Information pursuant to § 161 German Stock Corporation Act (Aktiengesetz - AktG) On February 12, 2015, the Executive Board and Supervisory Board of adidas AG issued the updated...

  • Page 250
    ... losses Transfers to assets held for sale Transfers Disposals December 31, 2014 Net carrying amount January 1, 2013 December 31, 2013 December 31, 2014 Rounding differences may arise in percentages and totals. 1,281 1,204 1,169 1,484 1,419 1,432 162 155 138 adidas Group / 2014 Annual Report

  • Page 251
    ...Financial Statements Statement of Movements of Intangible and Tangible Assets / 04.9 / ATTACHMENT I Internally generated software Total intangible assets Land, land leases, buildings...2,787 2,763 437 540 753 97 145 145 371 392 397 189 161 159 1,095 1,238 1,454 adidas Group / 2014 Annual Report

  • Page 252
    ... no active business 4) Sub-group Taylor Made Golf Limited 5) Sub-group adidas India Private Ltd. 6) Sub-group adidas (UK) Limited 7) Sub-group Sports Licensed Division of the adidas Group, LLC 8) Sub-group Reebok-CCM Hockey, U.S., Inc. 9) Sub-group Reebok International Limited 10) Sub-group Reebok...

  • Page 253
    ... no active business 4) Sub-group Taylor Made Golf Limited 5) Sub-group adidas India Private Ltd. 6) Sub-group adidas (UK) Limited 7) Sub-group Sports Licensed Division of the adidas Group, LLC 8) Sub-group Reebok-CCM Hockey, U.S., Inc. 9) Sub-group Reebok International Limited 10) Sub-group Reebok...

  • Page 254
    ... no active business 4) Sub-group Taylor Made Golf Limited 5) Sub-group adidas India Private Ltd. 6) Sub-group adidas (UK) Limited 7) Sub-group Sports Licensed Division of the adidas Group, LLC 8) Sub-group Reebok-CCM Hockey, U.S., Inc. 9) Sub-group Reebok International Limited 10) Sub-group Reebok...

  • Page 255
    ... no active business 4) Sub-group Taylor Made Golf Limited 5) Sub-group adidas India Private Ltd. 6) Sub-group adidas (UK) Limited 7) Sub-group Sports Licensed Division of the adidas Group, LLC 8) Sub-group Reebok-CCM Hockey, U.S., Inc. 9) Sub-group Reebok International Limited 10) Sub-group Reebok...

  • Page 256

  • Page 257
    ADDITIONAL INFORM ATION 05.1 05.2 05.3 05.4 Te n -Ye a r O v e r v i e w Glossar y Declaration of Suppor t Financial Calendar 254 258 2 61 262 05 A D D I T I O N A L I N F O R M AT I O N

  • Page 258
    ...-adidas Golf Rockport 9) Reebok-CCM Hockey Net Sales by Product Category (â,¬ in millions) Footwear 3) 4) Apparel 3) 4) Hardware 3) 4) Balance Sheet Data (â,¬ in millions) Total assets Inventories Receivables and other current assets Working capital Net cash/(net borrowings) Shareholders' equity...

  • Page 259
    Additional Information Ten-Year Overview / 05.1 / 2011 1) 2010 2009 2008 2007 2006 2) 2005 13,322 6,329 93 98 5,567 1,199 953 (84)...(2,189) 3,386 8,325 1,629 2,048 1,522 (1,766) 3,023 8,379 1,607 1,913 1,733 (2,231) 2,828 5,750 1,230 1,551 2,644 551 2,684 adidas Group / 2014 Annual Report

  • Page 260
    ...thousands) Employees Number of employees at year-end 3) 4) Personnel expenses 3) 4) (â,¬ in millions) Rounding differences may arise in percentages and totals. 1) 2011 restated according to IAS 8 in the 2012 consolidated financial statements. 2) Including Reebok, Rockport and Reebok-CCM Hockey from...

  • Page 261
    Additional Information Ten-Year Overview / 05.1 / 2011 1) 2010 2009 2008 2007 2006 2) 2005 (0.1) 20.4% (1.8%) 45.7% 104.6% 140.7% 93.2% 43.7% 56.3% 31.6% 68.3% 126.0% 6.7 11.9% 19...541 1,521 39,596 1,352 38,982 1,283 31,344 1,186 26,376 1,087 15,935 706 adidas Group / 2014 Annual Report

  • Page 262
    ...' equity) Ã- 100 / C Capital expenditure Total cash expenditure used for the purchase of tangible and intangible assets, excluding acquisitions and finance leases. Conversion rate A key ratio in retail business describing the number of buying customers compared to those who entered the store...

  • Page 263
    ... In the sporting goods industry, performance business relates to technical footwear and apparel used primarily in doing sports. Price points Specific selling prices, normally using 'psychological' numbers, e.g. a product price of US $ 99.99 instead of US $ 100. adidas Group / 2014 Annual Report

  • Page 264
    ... Group is currently divided into six business segments: Wholesale, Retail, TaylorMadeadidas Golf, Rockport, Reebok-CCM Hockey and Other Centrally Managed Brands. Trend scouting Identification and commercialisation of future trends, particularly lifestyle trends. adidas Group / 2014 Annual Report

  • Page 265
    ... Made Golf Co., Ltd., Tokyo, Japan Taylor Made Golf Limited, Basingstoke, Great Britain Taylor Made Korea Ltd., Seoul, Korea Textronics, Inc., Wilmington, Delaware, USA Trafford Park DC Limited (formerly Reebok Finance Limited), London, Great Britain 261 20 14 adidas Group / 2014 Annual Report

  • Page 266
    4 Additional Information Financial Calendar / 05.4 / FINANCIAL CALENDAR 2 0 15 MAR 05 Full Year 2014 Results Press release, conference call and webcast Publication of 2014 Annual Report 26 Investor Day Press release, management presentations and webcast 262 20 14 MAY 05 First Quarter 2015 ...

  • Page 267
    ... Investor Relations Association). This report is also available in German. For further adidas Group publications, please see our corporate website or download our Investor Relations and Media App from the App Store. To improve readability, registered trademarks are omitted in this Annual Report...

  • Page 268
    adidas AG Adi-Dassler-Str. 1 91074 Herzogenaurach Germany ©2015 adidas AG