Reebok 2015 Annual Report Download - page 119

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GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Group Business Performance – Income Statement
EXPENDITURE FOR POINT-OF-SALE AND MARKETING INVESTMENTS
ASA PERCENTAGE OF SALES INCREASES 0.6 PERCENTAGE POINTS
Expenditure for point-of-sale and marketing investments relates to the Group’s initiatives to strengthen
the desirability of our brands and products. While expenditure for point-of-sale investments consists of
expenses to support the Group’s sell-through development at the point of sale, expenditure for marketing
investments consists of items such as expenses for promotion partnerships, advertising, public relations
and other communication activities. In absolute terms, expenditure for point-of-sale and marketing
investments increased 22% to € 2.348 billion in 2015 from € 1.923 billion in the prior year. This development
mainly reflects the Group’s planned efforts to further strengthen brand desirability, by stepping up
expenditure for point-of-sale and marketing investments. By brand, adidas expenditure for point-of-sale
and marketing investments increased 24% to € 1.897 billion compared to € 1.533 billion in the prior year.
Expenditure for point-of-sale and marketing investments for Reebok grew 22% to € 267 million at year-end
(2014: € 220 million). As a percentage of sales, the Group’s expenditure for point-of-sale and marketing
investments increased by 0.6 percentage points to 13.9% (2014: 13.2%).
OPERATING OVERHEAD EXPENSESASA PERCENTAGE OF SALES
DECREASE 0.2 PERCENTAGE POINTS
Group operating overheads include overhead costs related to marketing, logistics, sales and R&D as well
as central administration. In absolute terms, operating overhead expenses grew 15% to € 4.941 billion in
2015 versus € 4.280 billion in 2014. This was primarily a result of an increase in costs related to logistics,
sales expenditure and central administration. As a percentage of sales, however, operating overhead
expenses decreased 0.2 percentage points to 29.2% (2014: 29.4%).
see Glossary, p. 260
see Glossary, p. 260
see Diagram 18
17OTHER OPERATING EXPENSES BYAREA€ IN MILLIONS
2015 2014
Point-of-sale investments 462 375
Marketing investments 1,886 1,548
Marketing overhead 554 427
Sales force 2,040 1,915
Logistics 859 763
Research & development 139 126
Central administration 1,350 1,050
Total 7,289 6,203
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2014
■
2015
18POINT-OF-SALE AND MARKETING INVESTMENTS 1, 2IN % OF NETSALES
Total
2015 13.9
2014 13.2
2013 12.6
2012 12.1
2011 12.7
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Point-of-sale investments
■
Marketing investments
1 2015, 2014 and 2013 reflect continuing operations as a result of the divestiture of the Rockport business.
2 2011 restated according to IAS 8 in the 2012 consolidated financial statements.
2.7 11.2
2.6 10.6
2.4 10.2
2.0 10.1
2.5 10.2