43 » Events after the Balance Sheet Date

As part of the publication of the financial guidance on February 9, 2023, it was announced that the company continues to review future options for the utilisation of its Yeezy inventory. Should the company irrevocably decide not to repurpose any of the existing Yeezy products going forward, this would result in the write-off of the existing Yeezy inventory and would lower the company’s operating profit in fiscal year 2023 by € 0.5 billion. This effect is, just like the negative revenue impact of around € 1.2 billion and the corresponding adverse operating profit effect of around € 0.5 billion, included in the financial guidance for the fiscal year 2023. As of December 31, 2022, the company assumed that the inventories will be utilized and therefore they are classified as recoverable. If a decision would have been made before the reporting date that the inventories would not be utilized, this would have resulted in an write-off on inventories of € 0.4 billion and a provision for onerous contracts of € 0.1 billion in 2022. It would not have had any other significant impact on the assets, liabilities, financial position, and profit or loss of the company (e.g. measurement of goodwill).

No other company-specific subsequent events are known that might have a material influence on the assets, liabilities, financial position, and profit or loss of the company.

Date of preparation

The Executive Board of adidas AG prepared and approved the consolidated financial statements for submission to the Supervisory Board on February 21, 2023. It is the Supervisory Board’s task to examine the consolidated financial statements and give their approval.

Herzogenaurach, February 21, 2023

The Executive Board of adidas AG