Financial Statements and Management Report of adidas AG

adidas AG is the parent company of the adidas Group. It includes operating business functions, primarily for the German market, as well as corporate headquarter functions such as Marketing, IT, Treasury, Taxes, Legal, and Finance. adidas AG also administers the company’s shareholdings.

Operating activities and capital structure of adidas AG

The majority of the operating business of adidas AG consists of the sale of merchandise to wholesale partners and own retail activities.

In addition to its own trading activities, the results of adidas AG are significantly influenced by its holding function for the adidas Group. This is reflected primarily in currency effects, cost recharges for services provided, interest result, and income from investments in related companies.

The risks and opportunities as well as the future development of adidas AG largely reflect those of the adidas Group. SEE OUTLOOK SEE RISK AND OPPORTUNITY REPORT

The asset and capital structure of adidas AG is significantly impacted by its holding and financing function for the adidas Group. For example, 55% of total assets as of December 31, 2025, related to financial assets (2024: 49%), which primarily consist of shares in affiliated companies. Intercompany accounts, through which transactions between affiliated companies are settled, represent another 24% of total assets (2024: 17%) and 25% of total equity and liabilities as of December 31, 2025 (2024: 29%).

Preparation of accounts

Unlike the consolidated financial statements, which are in conformity with the IFRS Accounting Standards, as adopted by the European Union as of December 31, 2025, the following financial statements of adidas AG have been prepared in accordance with the rules set out in the German Commercial Code (Handelsgesetzbuch – HGB).

Income statement in accordance with HGB

Sales of adidas AG comprise external revenues generated by adidas Germany as well as revenues from foreign subsidiaries. Revenues of adidas AG also include royalty and commission income, mainly from affiliated companies, revenues from the central distribution unit and other revenues, which mainly consist of costs recharged to subsidiaries. In 2025, adidas AG net sales increased 12% to € 5,673 million compared to € 5,068 million in the prior year.

In 2025, other operating income of adidas AG decreased 21% to € 543 million (2024: € 687 million). This development was primarily due to lower positive currency effects and less releases of accruals and provisions.

In 2025, other operating expenses for adidas AG decreased 4% to € 3,011 million (2024: € 3,150 million). This was largely attributable to donations.

Depreciation and amortization for adidas AG relating to intangible and tangible fixed assets decreased 12% to € 121 million in 2025 (2024: € 137 million).

In 2025, adidas AG generated an operating income of € 258 million (2024: € operating loss 268 million). This development is mainly due to higher net sales and lower expenses.

The financial result of adidas AG increased 217% to € 1,586 million in 2025 (2024: € 500 million). The increase was attributable to higher income from dividends.

Net income, after taxes of € 114 million (2024: € 83 million), amounted to € 1,729 million in 2025 and was higher than the prior year of € 149 million.

Balance sheet in accordance with HGB

At the end of December 2025, total assets increased 16% to € 10,457 million compared to € 9,008 million in the prior year. This development was mainly a result of the increase in financial assets as well as receivables and other assets.

Shareholders’ equity increased 56% to € 3,864 million at the end of 2025 (2024: € 2,479 million). The equity ratio increased to 37.0% (2024: 27.5%).

Provisions decreased 2% to € 939 million at the end of 2025 (2024: € 956 million).

At the end of December 2025, liabilities and other items increased 1% to € 5,654 million (2024: € 5,573 million). This is mainly due to higher VAT liabilities and liabilities to group companies.

Development of cash and cash equivalents

adidas AG has a syndicated credit facility of € 1,864 million and additional bilateral credit lines (including overdrafts) of € 731 million. In addition, the company has a multi-currency commercial paper program in an amount of € 2,000 million available. SEE TREASURY

In 2025, operating activities of adidas AG resulted in a cash outflow of € 225 million (2024: cash inflow € 55 million). The change versus the prior year was mainly a result of higher receivables. Net cash inflow from investment activities was € 430 million (2024: € 525 million). The reduction was primarily attributable to higher investments in financial assets and in the other direction higher dividend income from subsidiaries. Financing activities resulted in a net cash outflow of € 551 million (2024: € 345 million). The net cash outflow from financing activities mainly relates to the dividend payment to the shareholders of adidas AG and interest payments. As a result of these developments, cash and cash equivalents of adidas AG decreased to € 78 million at the end of December 2025 compared to € 424 million at the end of the prior year.

adidas AG is able to meet its financial commitments at all times.