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EMPLOYEES

The average numbers of employees are as follows:

ACCOUNTANT SERVICE FEES FOR THE AUDITOR OF THE FINANCIAL STATEMENTS

The expenses for the audit fees comprise the expenses of adidas AG, Herzogenaurach, as well as all German subsidiaries of adidas AG. In 2021, the expenses for the professional audit service fees for the auditor KPMG AG Wirtschaftsprüfungsgesellschaft amounted to € 1.6 million (2020: € 1.8 million) thereof related to the prior year € 0.3 million (2020: € 0.3 million).

Expenses for tax consultancy services provided by the auditor, for other confirmation services provided by the auditor, and for other services provided by the auditor amounted to € 0.1 million (2020: € 0.1 million), € 0.3 million (2020: € 0.2 million) and € 0.3 million (2020: € 0.1 million), respectively.

Expenses for the audit fees of KPMG AG Wirtschaftsprüfungsgesellschaft were mainly related to the audits of both the consolidated financial statements and the financial statements of adidas AG, as well as the audit of the financial statements of its subsidiary, adidas CDC Immobilieninvest GmbH.

Other confirmation services consist of confirmations required by law or contractually agreed, such as the audit of the historical financal information of the Reebok business activities for the financial years 2019 and 2020, the audit of the non-financial statement, the European Market Infrastructure Regulation (EMIR) audits according to § 20 WpHG, audits according to the German Packaging Law (Verpackungsgesetz – VerpackG), and other contractually agreed-upon confirmation services.

The tax consultancy services include support services for transfer pricing.

Other services relate in particular to status checks for non-financial key performance indicators.

REMUNERATION OF THE SUPERVISORY BOARD AND THE EXECUTIVE BOARD OF ADIDAS AG

Supervisory Board

Pursuant to the Articles of Association of adidas AG, the Supervisory Board members’ fixed annual payment amounted to € 2.2 million (2020: € 2.2 million). In addition, the members of the Supervisory Board received attendance fees of € 0.03 million (2020: € 0.03 million).

Members of the Supervisory Board were not granted any loans or advance payments in 2021.

Executive Board

In 2021, the overall compensation of the members of the Executive Board totaled € 27.3 million (2020: € 8.3 million), € 13.1 million thereof relates to short-term benefits (2020: € 6.8 million) and € 14.2 million to share-based payment (2020: € 1.5 million). Post-employment benefits (costs for accrued pension entitlements for members of the Executive Board) totaled € 3.5 million in 2021 (2020: € 3.3 million).

In 2021, payments including pension payments to former members of the Executive Board and their survivors amounted in total to € 4.3 million (2020: € 4.4 million). Expenses for benefits on the basis of termination of employment have not been incurred in 2021 (2020: € 6.3 million).

Pension obligations relating to former members of the Executive Board and their survivors amounted in total to € 93.9 million (2020: € 98.3 million).

Current members of the Executive Board were not granted any loans or advance payments in 2021.

Overall compensation oft the members of the Executive Board and Board of Directors §314 (1) i.V.m. §315e HGB

The overall compensation of the members of the Executive Board in the 2021 financial year amounted to € 13.1 million (previous year: € 5.8 million). In addition, a total LTIP Bonus amount of € 14.2 million (previous year: € 0) was granted to the Executive Board members which must be invested in the acquisition of adidas AG shares after deduction of applicable taxes and social security contributions. These shares are subject to a lock-up period which ends in the fourth financial year after the performance year. The LTIP payout amount is considered earned only after expiry of the lock-up period and only then can the Executive Board members dispose of the shares at their own discretion. By contrast, the amount deducted for income tax and social security contributions is already fully earned at the time of payout following the adoption of the consolidated financial statements by the Supervisory Board. The higher total remuneration in comparison to the previous year is mainly attributable to the fact that already in April 2020 in light of the coronavirus pandemic the Executive Board Members waived their LTIP Bonus and their Performance Bonus for the 2020 financial year as a liquidity management measure. For the 2020 financial year, a special bonus was granted to the Executive Board members for the first time in the amount of € 1.5 million, which had to be invested in the acquisition of adidas AG shares after deduction of applicable taxes and social security contributions.

Former members of the Executive Board and their surviving dependents received a total of € 4.3 million in benefits in the 2021 financial year (prior year: € 10.6 million).

Provisions for pension entitlements have been created for the former members of the Executive Board who resigned on or before December 31, 2005 and their surviving dependents, in an amount of € 43.0 million in total as at December 31, 2021 before offsetting with the assets of the “adidas Pension Trust e.V.” (prior year: € 45.8 million). There are pension commitments towards six former Executive Board members who resigned after December 31, 2005, which are covered by a pension fund or a pension fund in combination with a reinsured pension trust fund. From this, indirect obligations amounting to € 47.0 million (prior year: € 48.5 million) arise for which no provisions were created due to financing through the pension fund and pension trust fund. Provisions for pension entitlements have been created for two former members of the Executive Board who resigned on or after December 31, 2019 in an amount of € 3.9 million.

COMPANIES OPTING FOR EXEMPTION UNDER § 264 (3) HGB

The subsidiary adidas CDC Immobilieninvest GmbH, Herzogenaurach, is opting for exemption under § 264 (3) HGB.