Reebok 2015 Annual Report Download - page 135

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GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Group Business Performance – Financial Statements and Management Report of adidas AG
NETSALES INCREASE 13%
Sales of adidas AG comprise external revenues from adidas and Reebok products generated by adidas
Germany, external revenues from Y-3 products as well as Group-internal revenues from foreign subsidiaries.
Reported revenues also include royalty and commission income, mainly from affiliated companies, and
other revenues. In 2015, adidas AG net sales grew 13% to € 2.416 billion (2014: € 2.142 billion). This growth
is mainly due to an increase in royalty income from affiliated companies.
OTHER OPERATING INCOME GROWS STRONGLY
In 2015, other operating income of adidas AG more than doubled to € 1.478 billion (2014: € 647 million).
This was primarily due to an increase in income from currency conversion.
OTHER OPERATING EXPENSES UP 47%
Other operating expenses of adidas AG increased 47% to € 2.324 billion in 2015 (2014: € 1.581 billion). This
increase was primarily attributable to higher losses from currency conversion. In addition, cost transfers
within the Group, advertising and promotional expenditure as well as legal and consultancy expenses also
increased.
DEPRECIATION ANDAMORTISATION INCREASES 5%
Depreciation and amortisation for adidas AG rose 5% to € 96 million in 2015 (2014: € 91 million), mainly
as a result of the depreciation and amortisation of office buildings.
OPERATING PROFIT INCREASES STRONGLY VERSUS PRIOR YEAR
In 2015, operating profit increased 171% to € 323 million (2014: € 119 million). This was mainly due to
higher net sales and improved other operating income.
see Table 49
see Table 48
see Table 48
49ADIDASAG NETSALES 1€ IN MILLIONS
2015 2014
Royalty and commission income 1,371 1,177
adidas Germany 821 798
Foreign subsidiaries 139 96
Y-3 63 51
Other revenues 22 20
Total 2,416 2,142
1 Rounding differences may arise in totals.