Reebok 2014 Annual Report Download - page 131

Group Management Report – Financial Review
127
2014
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03.2
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adidas Group
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2014 Annual Report
Group Business Performance
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Financial Statements and Management Report of adidas AG
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 Treasury, Taxes, Legal and Finance. It also administers the shareholdings of the
company.
Operating activities and capital structure of adidas AG
The majority of the operating business of adidas AG consists of the sale of merchandise to retailers
and own-retail activities.
In addition to its own trading activities, the results of adidas AG are significantly influenced by its
holding function for the adidas Group. This is reflected primarily in currency effects, transfer of
costs for services provided, interest result and income from investments in affiliated companies.
The opportunities and risks as well as the future development of adidas AG largely reflect those of
the adidas Group.
The asset and capital structure of adidas AG is significantly impacted by its holding and financing
function for the Group. For example, 47% of total assets in 2014 related to financial assets,
which primarily consist of shares in affiliated companies. Intercompany accounts, through which
transactions between affiliated companies are settled, represent another 30% of total assets and
43% of total liabilities and equity as at December 31, 2014.
Preparation of accounts
Unlike the consolidated financial statements of the adidas Group, which are in conformity with
the International Financial Reporting Standards (IFRS), as adopted by the European Union as
at December 31, 2014, the following financial statements of adidas AG have been prepared in
accordance with the rules set out in the German Commercial Code (Handelsgesetzbuch – HGB).
Income Statement
see Subsequent Events and Outlook, p. 146
see Risk and Opportunity Report, p. 154
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Statement of income in accordance with HGB (Condensed) 1) (€ in millions)
2014 2013
Net sales 2,142 1,954
Total output 2,142 1,954
Other operating income 647 1,165
Cost of materials (600) (532)
Personnel expenses (398) (357)
Depreciation and amortisation (91) (81)
Other operating expenses (1,581) (1,981)
Operating profit 119 168
Financial result 128 43
Taxes (71) (111)
Net income 176 100
Retained earnings brought forward 110 324
Withdrawals from other revenue reserves 21 0
Retained earnings 307 424
1) Rounding differences may arise in totals.