Adidas 2003 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2003 Adidas 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 170

  • 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

79
EQUITY RATIO in %
1999 19.0
2000 20.3
2001 24.3
2002 25.4
2003 32.4
FINANCIAL LEVERAGE in %
1999 234.0
2000 219.6
2001 165.5
2002 138.5
2003 69.8
CHANGE IN CASH AND CASH EQUIVALENTS € in millions
67
651 (238)
(274)
(17) 190
Cash and
cash
equivalents
at the end
of 2002
Net cash
provided by
operating
activities
Net cash
used in
investing
activities
Net cash
used in
financing
activities
Effect of
exchange
rates on cash
Cash and
cash
equivalents
at the end
of 2003
SUCCESSFUL CASH FLOW DEVELOPMENT /// The Group’s
cash provided by operating activities is used for investing
activities, for the reduction of debt and for the payment of
dividends. Cash outflows for investing activities were
€238 million in 2003, a decrease of 25% versus the 2002 level
of € 315 million, and included the purchase of tangible, intan-
gible
and financial assets. Spending for property, plant and
equipment such as investments in adidas own-retail activities,
including major spending for the opening of our new factory
outlet in Herzogenaurach, and IT projects decreased by
€4million to € 110 million in 2003 from € 114 million in
2002. Cash outflows for intangible assets were € 35 million
versus € 151 million in 2002. The prior year includes the
acquisition of the remaining shares of adidas Italy and the
purchase of the Maxfli golf brand in December 2002. The
net cash used for acquiring subsidiaries in an amount of
€20million in 2002 is related to the acquisition of the
Canadian outdoor specialist Arc’Teryx and the purchase of
Salomon Danmark ApS, a former distribution partner for
Salomon products in Denmark. In 2003, the Group acquired
no subsidiaries. The Group used excess cash in 2003 to
purchase highly liquid investment funds for an amount of
around € 80 million.