Management Assessment of Performance, Risks and Opportunities, and Outlook

Assessment of performance versus targets

We communicate our financial targets on an annual basis. We also provide updates throughout the year as appropriate. 2025 was a successful year for adidas, and we performed better than initially expected, despite the external environment being characterized by macroeconomic challenges and elevated uncertainty. We were able to upgrade our guidance in October, reflecting continued brand momentum, the better-than-expected business performance, as well as the company’s successful efforts to partly mitigate the additional costs resulting from higher US tariffs. Ultimately, our 2025 financial results also exceeded our latest guidance from October on both the top and bottom line. SEE INCOME STATEMENT

In 2025, revenues for the adidas brand increased 13% on a currency-neutral basis. Having completed the sale of the remaining Yeezy inventory in 2024, the company’s results for 2025 do not include any Yeezy revenues (2024: around € 650 million). Including Yeezy sales in the prior year, currency-neutral revenues increased 10%. This was better than our initial expectation (increase at a high-single-digit rate) and also ahead of our latest guidance provided in October (increase by around 9%). Our currency-neutral top-line development reflects double-digit net sales growth for the adidas brand in all markets in 2025: Europe (+10%), North America (+10%), and Greater China (+13%) grew revenues at a low-double-digit rate, while Latin America (+22%), Emerging Markets (+17%), and Japan/South Korea (+14%) recorded even faster growth.

Our operating profit reached € 2,056 million in 2025, ahead of our latest guidance of around € 2.0 billion provided in October and significantly better than our initial expectation (to increase to a level of between € 1.7 billion and € 1.8 billion). Having completed the sale of the remaining Yeezy inventory in 2024, there was no Yeezy contribution to the company’s operating profit in 2025 (2024: around € 200 million). SEE INCOME STATEMENT

Average operating working capital as a percentage of sales increased 3.3 percentage points to 23.0%, above the guidance of between 21% and 22%, driven by the company’s operating working capital investments. Capital expenditure decreased 12% to € 477 million, below our guidance of a level of around € 600 million. SEE STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS

Beyond our financial performance, we also actively monitor other KPIs. These other KPIs include, among others, the share of women in leadership positions as well as the carbon intensity per product. With 41% female representation in leadership positions in 2025, we remain committed to achieving a level of 50% by 2033. CO₂e emissions per product decreased by 4% in 2025, thereby achieving our ambition to reduce carbon intensity per product by 9% between 2022 and 2025. SEE SUSTAINABILITY STATEMENT SEE ESRS S1 – Own Workforce SEE ESRS E1 – Climate Change

Assessment of overall risks and opportunities

Our Risk Management team aggregates all risks and opportunities identified through the half-yearly risk and opportunity assessment process to determine the company’s risk and opportunity portfolio (i.e., the company’s aggregated risk position). Results from this process are analyzed and reported to the Executive Board accordingly. The Executive Board discusses and assesses risks and opportunities on a regular basis and takes into account the relationship between the risk and opportunity portfolio (i.e., the company’s aggregated risk position) and risk appetite as well as risk capacity in its decision-making. Compared to the prior year, our assessment of certain risks and opportunities has changed in terms of likelihood of occurrence and/or potential financial impact. Our risk and opportunity aggregation using a Monte Carlo simulation determined that the company’s aggregated risk position does not exceed the company’s risk capacity threshold with a likelihood of at least 99%. Therefore, we do not foresee any material jeopardy to the viability of the company as a going concern. SEE RISK AND OPPORTUNITY REPORT

Assessment of financial outlook

In 2026, we expect macroeconomic challenges as well as geopolitical tensions to persist and uncertainty to remain elevated. At the same time, the strong structural growth of the global sporting goods industry continues to be very supportive for our business. By being a global brand with a local mindset and empowering our markets, as well as leveraging our strong product pipeline, we expect to gain further market share. As a result, we expect to increase adidas’ currency-neutral sales at a high-single-digit rate in 2026. With a focus on delivering high-quality growth and further investments in our business, we anticipate operating profit to increase to around € 2.3 billion in 2026. SEE OUTLOOK

We believe our outlook for 2026 realistically describes the underlying development of the company. However, the outlook for 2026 as outlined in this report is subject to change. Ongoing uncertainties regarding macroeconomic challenges, the impact from geopolitical conflicts, the development of consumer sentiment, and potential supply-chain disruptions represent risks to the achievement of our stated financial goals and aspirations. No other material event between the end of 2025 and the publication of this report has altered our view. SEE OUTLOOK