adidas GB 2018: Annual Report 2018

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Financial Highlights

Operating Highlights

Net Sales¹

€ 21.915 BN

+8% CURRENCY-NEUTRAL

Operating Profit¹

€ 2.368 BN

+14%

Net income from continuing operations^1,2

€ 1.709 BN

+20%

1

FIGURES REFLECT CONTINUING OPERATIONS AS A RESULT OF THE DIVESTITURE OF THE ROCKPORT, TAYLORMADE, ADAMS GOLF, ASHWORTH AND CCM HOCKEY BUSINESSES.

2

2017 EXCLUDING NEGATIVE ONE-TIME TAX IMPACT OF € 76 MILLION.

Business performance
by segment

KEY RATIOS

Gross margin¹

51.8 %

+1.4PP

Operating margin¹

10.8 %

+1.1PP

Average operating working
capital in % of net sales¹

19.0 %

(1.4 PP)

DATA PER SHARE

Basic earnings^1,2

€ 8.46

+20%

Diluted Earnings^1,2

€ 8.45

+21%

Dividend³

€ 3.35

+29%

Share price at year-end

€ 182.40

+9%

1

FIGURES REFLECT CONTINUING OPERATIONS AS A RESULT OF THE DIVESTITURE OF THE ROCKPORT, TAYLORMADE, ADAMS GOLF, ASHWORTH AND CCM HOCKEY BUSINESSES.

2

2017 EXCLUDING NEGATIVE ONE-TIME TAX IMPACT OF € 76 MILLION.

3

SUBJECT TO ANNUAL GENERAL MEETING APPROVAL.

Net Sales by brand

People

1

NUMBER OF EMPLOYEES ON A HEADCOUNT BASIS. FIGURES REFLECT CONTINUING OPERATIONS AS A RESULT OF THE DIVESTITURE OF THE ROCKPORT, TAYLORMADE, ADAMS GOLF, ASHWORTH AND CCM HOCKEY BUSINESSES.

Sustainability

NUMBER OF SHOES MADE
CONTAINING PARLEY OCEAN PLASTIC

100%

SUSTAINABLE COTTON SOURCED

> 5 M

PRODUCTS FREE OF PFC

> 99%

Outlook 2019¹

Currency-
neutral sales

Increase at a rate between

5% - 8%

Gross Margin

Increase to a level of around

52.0%

Operating
margin

Increase to a level between

11.3% - 11.5%

Net income from
continuing operations²

Increase at a rate between

10% - 14%

1

FIGURES REFLECT CONTINUING OPERATIONS AS A RESULT OF THE DIVESTITURE OF THE ROCKPORT, TAYLORMADE, ADAMS GOLF, ASHWORTH AND CCM HOCKEY BUSINESSES.

2

2019 EXCLUDING NEGATIVE IMPACT FROM ACCOUNTING CHANGE ACCORDING TO IFRS 16 OF AROUND € 35 MILLION (BASED ON LEASE CONTRACTS AS AT JANUARY 1, 2019); INCLUDING THIS IMPACT, NET INCOME FROM CONTINUING OPERATIONS IS CURRENTLY EXPECTED TO INCREASE AT A RATE BETWEEN 8% AND 12% TO A LEVEL BETWEEN € 1.845 BILLION AND € 1.915 BILLION.

‘SHE BREAKS
BARRIERS’
INITIATIVE

As a continuation of the commitment to remove barriers in sport, adidas announces the ‘She Breaks Barriers’ initiative. Expanding on the #creatorsunite conversation launched earlier in the year...

MORE

BACK TO
THE 90s

Translating 90s design into a modern context, adidas Originals presents the Falcon for women and the Yung 1 for men. Both are inspired by the maximalist design language of classic 90s running models...

MORE

RUN FOR THE
OCEANS

Kicked off on June 8, World Oceans Day, adidas and Parley for the Oceans initiate the second Run for the Oceans. Athletes, creators and adidas Runners are mobilized to join the movement, inspiring their followers to run as many kilometers as possible, tracking their progress with the Runtastic and Joyrun apps...

MORE

REEBOK
PRESENTS
PUREMOVE BRA

With PureMove Bra, Reebok unveils a technologically advanced sports bra that uniquely responds and adapts to movement to provide women with a customized amount of control and support...

MORE

RUNNING
REDEFINED:
ALPHAEDGE 4D

In November, the Alphaedge 4D, engineered with the adidas 4D midsole for controlled energy return and breathable cushioning during intensive training runs, becomes available in larger quantities for the first time worldwide...

MORE

A CELEBRATION
OF BASKETBALL
AND STREET
CULTURE

adidas rolls out a line-up of events at 747 Warehouse St. in Los Angeles to celebrate basketball and creative culture...

MORE

‘CREATIVITY IS
THE ANSWER’ campaign

Using the world’s biggest moment in sport as the backdrop, adidas re-engineers the traditional campaign model through personal storytelling. The ‘Creativity is the Answer’ campaign brings together 56 of the most influential creators...

MORE

OPENING OF
SHANGHAI
BRAND CENTER

In November, adidas opens its newest and largest Asia-Pacific Brand Center in Shanghai with a spectacular opening ceremony. Executives from adidas and Bailian Group, brand ambassadors Zinédine...

MORE

ORIGINALS
GOES PUBLIC
TRANSPORT

adidas Originals presents the EQT Support 93/Berlin in cooperation with public transport company Berliner Verkehrsbetriebe (BVG)...

MORE

FIVE YEARS
OF BOOST!

In 2013, adidas started to revolutionize the running market with BOOST, the lightweight cushioning tech-nology that stores energy at each step and returns it to the runner...

MORE

SOLARBOOST

SolarBOOST is inspired by NASA engineering and designed for pure function...

MORE

REEBOK GETS
‘LIQUIFIED’

Reebok introduces Liquid Floatride Run, a performance running shoe that applies Reebok’s ‘Liquid Factory’ technology to its award-winning Floatride Run sneaker...

MORE

PARTNERSHIP
EXTENSION
WITH UEFA
AND DFB

adidas announces the continuation of its support for the UEFA Champions League through to 2021...

MORE

CONTINENTAL 80

Steeped in nostalgia and harking back to adidas’ legacy of iconic court-style leather silhouettes, the Continental 80 captures the retro look of indoor sneakers from the early 1980s...

MORE

REEBOK X
VICTORIA
BECKHAM

Reebok releases its first-ever collection with fashion designer Victoria Beckham, after having announced the partnership in late 2017...

MORE

SPEED-
FACTORY

The year 2018 sees the launch of several new Speedfactory products, including several key city editions...

MORE

OVERALL
INDUSTRY
LEADER IN DJSI

For the 19th year in a row, adidas is included in the Dow Jones Sustainability Indices (DJSI)...

MORE

YEEZY
BOOST 350
V2 TRIPLE
WHITE

In September, our partnership with Kanye West sees its largest digital drop of a Yeezy model to date...

MORE

REEBOK
LAUNCHES
AZTREK

Twenty-five years after its original launch in 1993, Reebok reintroduces the Aztrek...

MORE

SUCCESSFUL
ADIDAS ATHLETES

In May, Real Madrid wins the Champions League for the third time in a row. The team beats Liverpool F.C. 3-1...

MORE

FROM THE CEO
KASPER
RORSTED

Read letter

Executive Board

Harm Ohlmeyer

Chief Financial Officer

Roland Auschel

Global Sales

Karen Parkin

Global Human Resources

Kasper Rorsted

Chief Executive Officer

Eric Liedtke

Global Brands

Acceleration Plan

In March 2017, we introduced a number of initiatives to foster brand momentum and accelerate top- and bottom-line growth:

Annual Report 2018

ONLINE SUMMARY

Financial Highlights

€ 21.915 BN

€ 2.368 BN

€ 1.709 BN

51.8 %

10.8 %

19.0 %

€ 8.46

€ 8.45

€ 3.35

€ 182.40

People

Sustainability

100%

> 5 M

> 99%

Outlook 20191

5% - 8%

52.0%

11.3% - 11.5%

10% - 14%

‘SHE BREAKS BARRIERS’ INITIATIVE

BACK TO THE 90s

RUN FOR THE OCEANS

REEBOK PRESENTS PUREMOVE BRA

RUNNING REDEFINED: ALPHAEDGE 4D

A CELEBRATION OF BASKETBALL AND STREET CULTURE

‘CREATIVITY IS THE ANSWER’ campaign

OPENING OF SHANGHAI BRAND CENTER

ORIGINALS GOES PUBLIC TRANSPORT

FIVE YEARS OF BOOST!

SOLARBOOST

REEBOK GETS ‘LIQUIFIED’

PARTNERSHIP EXTENSION WITH UEFA AND DFB

CONTINENTAL 80

REEBOK X VICTORIA BECKHAM

SPEED- FACTORY

OVERALL INDUSTRY LEADER IN DJSI

YEEZY BOOST 350 V2 TRIPLE WHITE

REEBOK LAUNCHES AZTREK

SUCCESSFUL ADIDAS ATHLETES

FROM THE CEO KASPER RORSTED

Executive Board

Acceleration Plan

Portfolio

Adidas North America

One Adidas

Digital

FULL REPORT

Chapters

Charts

Outlook 2019¹

‘SHE BREAKS
BARRIERS’
INITIATIVE

BACK TO
THE 90s

RUN FOR THE
OCEANS

REEBOK
PRESENTS
PUREMOVE BRA

RUNNING
REDEFINED:
ALPHAEDGE 4D

A CELEBRATION
OF BASKETBALL
AND STREET
CULTURE

‘CREATIVITY IS
THE ANSWER’ campaign

OPENING OF
SHANGHAI
BRAND CENTER

ORIGINALS
GOES PUBLIC
TRANSPORT

FIVE YEARS
OF BOOST!

REEBOK GETS
‘LIQUIFIED’

PARTNERSHIP
EXTENSION
WITH UEFA
AND DFB

REEBOK X
VICTORIA
BECKHAM

SPEED-
FACTORY

OVERALL
INDUSTRY
LEADER IN DJSI

YEEZY
BOOST 350
V2 TRIPLE
WHITE

REEBOK
LAUNCHES
AZTREK

SUCCESSFUL
ADIDAS ATHLETES

FROM THE CEO
KASPER
RORSTED