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GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Group Business Performance – 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 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 also 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 also impacted by its holding and financing function for
the Group. For example, 56% of total assets in 2015 related to financial assets, which primarily consist
of shares in affiliated companies. Intercompany accounts, through which transactions between affiliated
companies are settled, represent another 27% of total assets and 44% of total liabilities and equity as at
December 31, 2015.
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, 2015, 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. 148
see Risk and Opportunity
Report, p. 156
48STATEMENTOF INCOME IN ACCORDANCE WITH HGB CONDENSED 1€ IN MILLIONS
2015 2014
Net sales 2,416 2,142
Total output 2,416 2,142
Other operating income 1,478 647
Cost of materials (663) (600)
Personnel expenses (488) (398)
Depreciation and amortisation (96) (91)
Other operating expenses (2,324) (1,581)
Operating profit 323 119
Financial result 394 128
Taxes (78) (71)
Net income 639 176
Retained earnings brought forward 4 110
Withdrawals from other revenue reserves 0 21
Retained earnings 643 307
1 Rounding differences may arise in totals.