Adidas AG - MarketLine-110916

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COMPANY PROFILE
adidas AG
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PUBLICATION DATE: 09 Nov 2016
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adidas AG
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview ........................................................................................................3

Key Facts ......................................................................................................................... 3
Business Description .....................................................................................................4
History ............................................................................................................................. 5
Key Employees .............................................................................................................11
Key Employee Biographies .........................................................................................13
Major Products & Services ..........................................................................................20
Revenue Analysis .........................................................................................................21
SWOT Analysis .............................................................................................................23
Top Competitors ...........................................................................................................29
Company View ..............................................................................................................30
Locations And Subsidaries .........................................................................................34
Financial Overview .......................................................................................................36
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adidas AG
Company Overview
Company Overview
COMPANY OVERVIEW
adidas AG (adidas or 'the company'), along with its subsidiaries, is engaged in the design, development,
manufacture and marketing of a broad range of athletic and sports lifestyle products. The company offers
its products primarily through three brands: adidas, TaylorMade and Reebok. adidas operates in Europe,
the Americas and Asia. It is headquartered in Herzogenaurach, Germany.
The company reported revenues of (Euro) EUR16,915 million for the fiscal year ended December 2015
(FY2015), an increase of 16.4% over FY2014. In FY2015, the company’s operating margin was 6.3%,
compared to an operating margin of 6.1% in FY2014. In FY2015, the company recorded a net margin of
3.7%, compared to a net margin of 3.4% in FY2014.
The company reported revenues of EUR4,422.0 million for the second quarter ended June 2016, a
decrease of 7.3% over the previous quarter.
Key Facts
KEY FACTS
Head Office adidas AG

Adi-Dassler-Strasse 1
Herzogenaurach
Herzogenaurach
DEU
Phone 49 9132 840
Fax 49 9132 842241
Web Address www.adidas-group.com
Revenue / turnover (EUR Mn) 16,915.0
Revenue (USD Mn) 18,769.4
Financial Year End December
Employees 57,619
Frankfurt Stock Exchange Ticker ADS
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adidas AG
Business Description
Business Description
BUSINESS DESCRIPTION
adidas is one of the largest companies in the sporting goods industry. The company offers a wide range
of athletic and sports lifestyle products through its core brands: adidas, Reebok and TaylorMade. adidas
operates through 145 subsidiaries in Europe, the Americas and Asia.
Beginning FY2015, the company operates through 13 business segments: Western Europe, North
America, Greater China, Russia/Commonwealth of Independent States (CIS), Latin America, Japan, the
Middle East, South Korea, Southeast Asia/Pacific, TaylorMade-adidas Golf, Reebok-CCM hockey,
Runtastic and other centrally managed businesses. Of these, the Middle East, South Korea and
Southeast Asia/Pacific segments are aggregated to form the Middle East, Africa and other Asian markets
(MEAA) segment. Further, TaylorMade-adidas Golf, Reebok-CCM Hockey, Runtastic and other centrally
managed businesses segments are combined to form other businesses segment.
Each of the markets (Western Europe, North America, Greater China, Russia/CIS, Latin America, Japan
and MEAA) comprises all wholesale, retail and e-commerce businesses related to the distribution and
sale of adidas and Reebok branded products to retail customers and end users.
adidas and Reebok branded products include footwear, apparel and hardware, such as bags and balls.
adidas comprises adidas Sport Performance, adidas Originals and adidas Sport Style brands. adidas
Sport Performance mainly focuses on four categories: football, basketball, running and training. adidas
Originals offers casual sportswear range; while adidas Sport Style includes the brands Y-3, Porsche
Design Sport by adidas and adidas NEO.
The other businesses include TaylorMade-adidas Golf, Reebok-CCM Hockey, Runtastic, as well as other
centrally managed businesses, including brands such as Y-3 and Five Ten. TaylorMade-adidas Golf
includes four brands: TaylorMade, adidas Golf, Adams Golf and Ashworth. TaylorMade designs, develops
and distributes mainly golf clubs, balls and accessories. Under adidas Golf brand, the company offers
footwear, apparel and accessories. Adams Golf designs and distributes primarily golf clubs as well as a
small range of accessories. Ashworth, a golf apparel brand, designs and distributes men's and women's
lifestyle apparel and footwear. Reebok-CCM Hockey designs, manufactures and markets ice hockey
equipment, including sticks, skates and protection gear, as well as apparel under the brand names
Reebok Hockey and CCM. Under Runtastic brand, adidas offers a comprehensive ecosystem for tracking
and managing health and fitness data. The other centrally managed businesses segment primarily
includes the business activities of Y-3 and Porsche Design Sport by adidas brands as well as the
business activities of the Five Ten brand in the outdoor action sports market. Furthermore, the segment
also comprises the own-retail activities of the adidas NEO label and international clearance management.
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adidas AG
History
History
HISTORY
The company also completed the divestiture of its Mitchell & Ness business to an entity primarily owned
by Juggernaut Capital Partners in June 2016.
Further in June 2016, the company strengthened its long-term relationship with a designer, Kanye West,
with the launch of adidas + KANYE WEST. adidas + KANYE WEST is a YEEZY branded entity that offers
footwear, apparel and accessories for men and women across street and sport segments.
adidas and The German Football Association (DFB) extended their existing partnership until 2022, in
June 2016. Under the terms of the agreement, the company will remain the official supplier to DFB until
2022. During the month, adidas and Wanda Group agreed for a future collaboration. As part of this, key
agreements would include: adidas sponsoring two of Wanda’s IRONMAN events in China, as well as
working with Wanda to help develop football and basketball at all levels. Both the companies also agreed
to expand their commercial relationship, which allows adidas to open Sportswear Collective and other
large-format stores throughout Wanda’s shopping malls and other commercial properties.
The company entered into a definitive agreement to sell its Mitchell & Ness business to a newly formed
entity majorly owned by Juggernaut Capital Partners, in May 2016. Through this approach, adidas aims to
improve focus on its core brands.
Further in May 2016, the company started commercial operations at its SPEEDFACTORY in Germany. It
also mentioned that the facility will begin large-scale production in 2017.
Chelsea Football Club and adidas, in May 2016, mutually agreed to terminate their existing partnership
agreement prematurely, by the end of June 2017.
adidas launched a new digital content hub, ‘GamePlan A’ at http://GamePlan-A.com, also during May
2016. GamePlan A is a business lifestyle magazine that focuses on topics related to sport, business and
lifestyle.
In May 2016, adidas completed the analysis of the future options for its golf business and announced
plans to divest parts of the golf division. Through this approach, the company intends to improve its focus
in the golf sporting goods market by strengthening its position as a leading provider of golf footwear and
apparel under the adidas Golf brand.
adidas unveiled a pilot SPEEDFACTORY in Germany, in December 2015. SPEEDFACTORY uses

automated manufacturing to produce high-performance sporting goods faster. SPEEDFACTORY includes
intelligent robotic technology that not only offers enhanced performance quality, but also an exceptional
design to the shoes.
In October 2015, the company introduced Futurecraft 3D, a three-dimensional (3D)-printed running shoe
midsole.
adidas entered into a seven-year partnership with the National Hockey League (NHL) in September 2015.
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History
According to the partnership, the company became the authentic outfitter of on-ice uniforms as well as an
official supplier of licensed apparel and headwear for the League starting with the 2017–18 season.
adidas acquired all outstanding shares of Runtastic, one of the global players in the health and fitness
apparel market, also during August 2015. The acquisition strengthened the company's product portfolio,
as well as improved its market position.
In August 2015, the company completed the divestiture of its Rockport business to a new entity formed by
Berkshire Partners and New Balance Holding.
During March 2015, the company entered into a mutual agreement with Vulcabras to acquire the
distribution and license rights for the Reebok brand in Brazil and Argentina. The agreement allows adidas
to gain exclusive distribution rights for Reebok products in Brazil and Argentina starting January 1, 2016.
adidas entered into an agreement with a new entity formed by Berkshire Partners and New Balance, to
sell its Rockport business, in January 2015.
adidas and Manchester United entered into an official partnership during 2014, according to which the
company will supply products to Manchester United and outfit all of the club's teams. Additionally, adidas
will have the exclusive right to distribute dual-branded merchandising products worldwide.
In early 2014, adidas introduced its new global retail concept, HomeCourt, in its world's largest store, the
adidas Brand Centre in Beijing, China.
The company extended its long-term partnership agreement with FIFA in 2013, granting adidas the
Official Partner, Supplier and Licensee rights for the FIFA World Cup and all FIFA events until 2030.
adidas launched Energy Boost running shoes featuring BOOST, a cushioning technology that provides
high energy return, in 2013.
Further in 2012, the Nuremberg District Court ruled against Nike for an injunction to stop adidas from
manufacturing and selling its Primeknit shoe in Germany. This allowed the company to resume
production of the adizero Primeknit.
The company announced plans to close its only sportswear factory in China, also during 2012.
In 2012, adidas, along with its TaylorMade-adidas Golf segment, acquired Adams Golf. Adams Golf
designs, assembles, markets and distributes technologically innovative golf clubs for all skill levels. This
acquisition adds a strong golf brand to the TaylorMade-adidas Golf business segment.
Later in 2011, the company announced the extension of its long-term partnership with UEFA for the
UEFA Champions League, UEFA Europa League as well as the UEFA Super Cup and UEFA Women's
Champions League. Under the terms of new contract, adidas will supply a high-performance product
range worldwide, featuring the insignia of the UEFA Champions League and UEFA Europa League. The
company will also continue to supply official match balls for the UEFA Women's Champions League final
and the UEFA Futsal Cup finals. It will also provide a bespoke UEFA Champions League and UEFA
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History
Europa League apparel and accessories range for each respective final.
adidas announced the acquisition of Five Ten, a manufacturer of outdoor and athletic footwear, in 2011 to
strengthen its position in the outdoor market.
The company extended its sponsorship agreement with Argentine Football Association until 2022 during
2011. Under the new agreement, adidas will continue to provide the Official Match Ball and supply the
equipment for all officials, referees and volunteers.
adidas launched adiPower Predator light weight football shoes, also in 2011.
Further in 2011, Reebok partnered with CrossFit, one of the largest fitness centers in the US, to expand
CrossFit gym concept across the world. During the same year, the company and FC Bayern Munich
extended their partnership until 2020.
Y-3, along with luxury retail partner Hervia, opened its first flagship store at Mayfair, London in the UK
during 2011.
adidas and Royal Spanish Football Federation (RFEF), in 2011, extended their sponsorship agreement
until 2018. adidas sponsors every team of the RFEF, including the U-17 and U-19 teams.
adidas and NBA extended their global partnership in 2010, giving the company, exclusive rights to all of
its apparel in Europe beginning with the 2010-11 NBA season. In the same year, the company and the
Mexican Football Federation extended their partnership until 2018. adidas will continue to supply the
Mexican national soccer team with training and playing apparel until 2018.
In 2009, adidas and UEFA extended their long-term partnership for UEFA EURO 2012 and UEFA EURO
2016, as well as for all other national team competitions to be conducted during 2010-17 under UEFA's
EUROTOP banner. Under the terms of the contract, adidas will continue to be the supplier of the Official
Match Balls for all of these tournaments. The company will also continue to equip staff, officials, referees
and volunteers for all the national team competitions in Europe during the period.
Reebok and Cirque du Soleil, an entertainment company, entered into a long-term partnership in 2009 to
launch gym equipment for women, JUKARI Fit to Fly.
TaylorMade-adidas Golf completed share purchase of Ashworth for a price of $1.90 per share in cash,
towards the end of 2008. As a result of this, Ashworth became a wholly-owned subsidiary of TaylorMade-
adidas Golf.
Also in 2008, adidas and the Russian Football Union (RFU) entered into a long-term partnership until
2018. Under the agreement, adidas supplies all RFU teams, including the Olympic football team.
Reebok, the company's subsidiary, formed a joint venture with Vulcabras in 2008, to distribute Reebok
footwear, apparel and accessories in Brazil and Paraguay.
In 2008, adidas and A.C. Milan announced the extension of their sponsorship deal until the end of 2017.
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History
adidas opened its adidas NBA Concept Shop in Istanbul and Turkey during 2007.
In 2007, adidas and Intersport International Corporation (IIC) extended their strategic co-operation
(entered into in 2003) until 2012. Under the agreement, the company was given rights to offer a
customized product range for football and running in the 32 markets where IIC has presence. Also in the
same year, adidas and the Hellenic Football Federation (HFF) announced the extension of their
sponsorship deal until the end of 2012. The company supplies all national teams of the HFF.
adidas acquired distribution rights for the Reebok brand in Turkey from Reebok Spor Urunleri in 2007.
Late in 2006, adidas sold the Greg Norman Collection apparel business to the MacGregor Golf Company.
adidas assumed full ownership of its subsidiary in Korea , adidas Korea during 2006, by purchasing the
remaining 49% of shares from its joint venture partner. In the same year, the company bought the
distribution rights for the Reebok brand in the Czech Republic and Slovakia from Reebok Sport Czech
Republic and Reebok Sport Slovakia, respectively.
Further in 2006, adidas signed an agreement with New Point Industrial to gain control of the distribution
and license rights for the Reebok brand in China. The company also entered into a long-term partnership
agreement with the Union of European Football Associations (UEFA), granting adidas the global
sponsorship rights for the UEFA Euro 2008 in Austria and Switzerland.
adidas Japan (the company's subsidiary in Japan) and Japan Football Association extended their
partnership in 2006, until March 2015 for adidas Japan to be the official supplier.
Also in 2006, the company purchased distribution rights for the Reebok brand from ZAO Reebok-Retail
(Reebok's Russian distributor) in CIS countries (Russia, Ukraine, Kazakhstan, Belarus, Uzbekistan,
Armenia and Azerbaijan).
adidas-Salomon changed its name to adidas AG in 2006.
adidas-Salomon secured a strong foothold in the US professional sports in 2006, when it signed an 11-
year deal to be the official supplier of uniforms and other products to the National Basketball Association
(NBA). This agreement also included the Women's NBA and the NBA Development League.
In 2006, the company completed the acquisition of Reebok.
Further in 2005, adidas-Salomon was named the official sportswear partner for the 2008 Olympics in
Beijing.
adidas and Porsche Design Group signed a long-term strategic partnership, including licensing
agreement, in 2005.
The company sold Salomon division to equipment manufacturer, Amer Sports, a unit of Amer Group, in
2005. This deal included the Arc'Teryx, Bonfire, Cliche, Mavic and Salomon businesses.
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History
Also in 2005, The Australian Olympic Committee signed a 12-year sponsorship agreement with adidas-
Salomon. Under the agreement, adidas-Salomon will provide sports outfits to the Australian Olympic
Team at the Olympic Games in 2008, 2012 and 2016.
The company announced its plans to acquire Reebok International (Reebok) for $59 per Reebok share, in
2005.
In 2004, adidas-Salomon acquired Valley Apparel Company, a producer and distributor of collegiate and
professional league apparel and accessories.
adidas-Salomon also opened its first adidas Originals Store in Seoul, South Korea in 2003.
During 2003, adidas-Salomon formed a strategic alliance with Intersport International, which strengthened
its products' sales and distribution. Further in 2003, the company signed a six-year agreement with the
China Football Association to support Chinese Football until 2010.
TaylorMade-adidas Golf, a division of adidas-Salomon, acquired the Maxfli brand of golf balls and
accessories, in 2003.
During 2001, Salomon (a unit of adidas-Salomon) expanded its Canadian operations with the acquisition
of Canadian outdoor specialist, Arc'teryx Equipment. As a result of this, Salomon expanded its presence
in new sports and outdoor categories.
In 1998, TaylorMade was separated from the Salomon Group and combined with adidas Golf.
Following the acquisition, the company changed its name to adidas-Salomon AG (adidas-Salomon or 'the
company'), in 1997.
The company expanded its product line in 1997 with the acquisition of the Salomon Group. This
acquisition added brands such as Salomon, TaylorMade, Mavic and Bonfire to its portfolio.
adidas was listed on the Frankfurt and Paris Stock Exchanges in 1995.
In 1991, adidas launched adidas EQUIPMENT, a line of performance-oriented, functional footwear and
apparel.
It continued to grow and enter new markets during 1990s.
In 1989, the company was transformed into a corporation (Aktiengesellschaft) after the Dassler Family
withdrew adidas.
adidas launched one of the world's most popular soccer boots, the Copa Mundial in 1975.
By 1960s, the company was manufacturing equipment across various sports, including equipment for
fringe sports.
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History
It launched its first pair of football boots with removable studs in 1954.
adidas was promoted by Adolf and Rudi Dassler in 1949. The company was named after its founders
(with 'Adi' from Adolf and 'Das' from Dassler).
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Key Employees
Key Employees
KEY EMPLOYEES
Name Job Title Board Compensation

Igor Landau Chairman-Supervisory Non Executive Board 208250 EUR
Board
Kasper Rorsted Chief Executive Officer Senior Management
Robin J. Stalker Chief Financial Officer Senior Management 2316089 EUR
Willi Schwerdtle Deputy Chairman, Non Executive Board 132500 EUR
Supervisory Board
Sabine Bauer Deputy Chairperson, Non Executive Board 133250 EUR
Supervisory Board
Eric Liedtke Member, Executive Senior Management 1896989 EUR
Board-Global Brands
Glenn Bennett Member, Executive Senior Management 2525948 EUR
Board-Global Operations
Roland Auschel Member, Executive Senior Management 1957408 EUR
Board-Global Sales
Ian Gallienne Member, Supervisory Non Executive Board
Board
Dieter Hauenstein Member, Supervisory Non Executive Board 53750 EUR
Board
Udo Muller Member, Supervisory Non Executive Board
Board
Wolfgang Jaeger Member, Supervisory Non Executive Board 107500 EUR
Board
Stefan Jentzsch Member, Supervisory Non Executive Board 106000 EUR
Board
Herbert Kauffmann Member, Supervisory Non Executive Board 132500 EUR
Board
Katja Kraus Member, Supervisory Non Executive Board 53750 EUR
Board
Kathrin Menges Member, Supervisory Non Executive Board 52250 EUR
Board
Roland Nosko Member, Supervisory Non Executive Board 82500 EUR
Board
Hans Ruprecht Member, Supervisory Non Executive Board 107500 EUR
Board
Nassef Sawiris Member, Supervisory Non Executive Board
Board
Kurt Wittmann Member, Supervisory Non Executive Board
Board
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Key Employees
Heidi Thaler-Veh Member, Supervisory Non Executive Board 53000 EUR

Board
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Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
Igor Landau
Board:Non Executive Board

Job Title:Chairman-Supervisory Board
Since:2009
Age:72
Mr. Landau has been the Chairman of the Supervisory Board at adidas since 2009. He is a member of
the Supervisory Board at the company since 2004; and a member of the Board of Directors at Sanofi-
Aventis. Mr. Landau served as the Chief Executive Officer at Aventis from 2002 to 2004 and Deputy Chief
Executive Officer from 2000 to 2002. Between 1992 and 2000, he was the Directeur General and a
member of the Administrative Board at Rhone-Poulenc. Earlier, Mr. Landau also held other positions at
Rhone-Poulenc, including Head of Health Department (from 1981 to 1992) and Deputy Head of the
Health Department (from 1975 to 1981). Previously, he was a Consultant at McKinsey & Co from 1971 to
1975 and the Managing Director at Roneo from 1968 to 1970.
Kasper Rorsted
Board:Senior Management
Job Title:Chief Executive Officer
Since:2016
Age:54
Mr. Rorsted has been the Chief Executive Officer at adidas since October 2016. He has also been an
Executive Board member at the company since August 2016. Most recently, Mr. Rorsted served as the
Chief Executive Officer at Henkel from 2008 until April 2016. Mr. Rorsted joined Henkel in 2005 as the
Executive Vice President of Human Resources / Purchasing / IT / Infrastructure Services. Earlier, he was
with Hewlett Packard from 2002 to 2004, serving as the Senior Vice President and General Manager for
Europe, the Middle East and Africa (EMEA) region. Mr. Rorsted also served as the Vice President and
General Manager for EMEA region at Compaq in the past. He held several management positions,
including Head of Compaq Enterprise Business Group for EMEA region at Compaq. Mr. Rorsted was with
Oracle and Digital Equipment Corporation in the past, serving in several management positions across
sales and marketing functions. Currently, he is a member of the Supervisory Board at Anheuser-Busch
InBev, Bertelsmann SE & Co. and Danfoss.
Robin J. Stalker
Job Title:Chief Financial Officer
Since:2000
Age:58
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Mr. Stalker has been the Chief Financial Officer at adidas since 2000. He was appointed member of the
Executive Board, responsible for Finance at the company in 2001. Mr. Stalker joined adidas in 1996.
Previously, he worked with various companies, including Arthur Young (now Ernst & Young), United
International Pictures and Warner Bros International. Currently, Mr. Stalker also serves as a member of
the Supervisory Board at Schaeffler.
Willi Schwerdtle

Job Title:Deputy Chairman, Supervisory Board
Since:2009
Age:63
Mr. Schwerdtle has been the Deputy Chairman of the Supervisory Board at adidas since 2009. He has
been a member of the Supervisory Board at the company since 2004. Mr. Schwerdtle has been a Partner
at WP Force Solutions; a member of the Supervisory Board at Eckes and Nieder-Olm; and the Chairman
of the Supervisory Board at Windeln.de. He is also an Independent Management Consultant. Previously,
Mr. Schwerdtle served in various positions at Procter & Gamble, including Assistant Brand Manager,
Division Manager, and Sales Representative and Unit Manager, among others.
Sabine Bauer

Job Title:Deputy Chairperson, Supervisory Board
Since:2009
Age:53
Ms. Bauer has been the Deputy Chairperson of the Supervisory Board at adidas since 2009. She has
been a member of the Supervisory Board at the company since 1999. Ms. Bauer has also been the
Chairperson of the Central Works Council at adidas since 2010 and at European Works Council since
2002. Previously, she served in various positions at the company, including Assistant to Head of Quality
Management Footwear global, Project coordinator of Quality Management Footwear global, Quality
Manager of Service Systems, and Senior Manager of Quality Service Systems, among others.
Eric Liedtke
Job Title:Member, Executive Board-Global Brands
Since:2014
Age:50
Mr. Liedtke has been a member of the Executive Board, responsible for Global Brands at adidas since
2014. Previously, he served as the Senior Vice President of adidas Sport Performance from 2011 until
2014. Mr. Liedtke was also the Senior Vice President of Sport Performance Brand Marketing at adidas
from 2006 to 2011; Vice President of Brand Marketing at adidas America from 2004 to 2006; Director of
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Footwear Marketing at adidas America from 2001 to 2004; and Director of Brand Marketing at adidas
America from 1999 to 2001. He joined the company in 1994. Earlier, Mr. Liedtke was with DMB&B
Advertising.
Glenn Bennett
Job Title:Member, Executive Board-Global Operations
Since:1997
Age:53
Mr. Bennett has been a member of the Executive Board, responsible for Global Operations at adidas
since 1997. He joined the company in 1993 as the Head of Worldwide Development. Mr. Bennett began
his professional career with Reebok International in 1983, where he worked for 10 years in various roles,
including most recently as Director of Worldwide Development.
Roland Auschel
Job Title:Member, Executive Board-Global Sales
Since:2013
Age:53
Mr. Auschel has been a member of the Executive Board, responsible for Global Sales at adidas since
2013. He joined the company in 1989 as a Strategic Planner. Mr. Auschel held several senior
management positions at adidas on a local, regional and global level, including Business Unit Manager
for International Accounts, Key Account Manager for Europe, and Head of Region EMEA adidas Group,
among others. He served as the Chief Sales Officer of Multichannel Markets at the company from 2009 to
2013.
Ian Gallienne

Job Title:Member, Supervisory Board
Since:2016
Age:45
Mr. Gallienne has been a member of the Supervisory Board at adidas since 2016. He has also served as
the Co-Chief Executive Officer at Groupe Bruxelles Lambert since 2012. Within Groupe Bruxelles
Lambert, Mr. Gallienne is a member of the Board of Directors at Imerys, Sienna Capital and GBL
Verwaltung. He has also been a member of the Board of Directors at Pernod Ricard (since 2012), SGS
and Erbe (since 2013) and Umicore (since 2015). Earlier, Mr. Gallienne served as a Director at Lafarge
from 2011 until March 2016. He was a Founder/Chief Executive Officer at Ergon Capital Partners from
2005 to 2012. Between 1992 and 2005, Mr. Gallienne held positions, including Director at Rhone Capital;
Investment Manager at Synactic; and Co-Founder at Loco Pins.
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Dieter Hauenstein

Since:2009
Age:59
Mr. Hauenstein has been a member of the Supervisory Board at adidas since 2009. He served as a
Deputy Chairman of the Works Council Herzogenaurach from 2012 to 2014. Mr. Hauenstein joined the
company in 1977 and since then, held various positions.
Udo Muller

Since:2016
Age:56
Mr. Muller has been a member of the Supervisory Board at adidas since 2016. He has also been a
Director Future at the group since 2013. Mr. Muller held various positions at adidas, including Head of
Global Functional Retail Training and Senior Product Manager Running. He also served at NIKE from
1986 to 1992 and at Sports Retail from 1982 to 1985.
Wolfgang Jaeger

Since:2009
Age:62
Dr. Jaeger has been a member of the Supervisory Board at adidas since 2009. He also serves as the
Managing Director at Hans-Bockler-Stiftung. Between 2002 and 2004, Dr. Jaeger was the Federal Board
Secretary of the Confederation of German Trade Unions. He served as the Deputy Manager of the Centre
of Learning at Haltern am See from 1995 to 2001 and as an Executive Officer at Industrial Union IG
Bergbau, Chemie, Energie (IGBCE) during 1990–95.
Stefan Jentzsch

Since:2007
Age:56
Dr. Jentzsch has been a member of the Supervisory Board at adidas since 2007. Currently, he also
serves as a Partner at Perella Weinberg Partners UK. During 2005–09, Dr. Jentzsch was a member of
the Executive Board and Chief Executive Officer at Dresdner Kleinwort. He also served as a member of
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the Executive Board at Bayerische Hypo- und Vereinsbank from 2001 to 2005; and a Partner at Goldman
Sachs in 1998. Between 1987 and 2001, Dr. Jentzsch held several assignments within Investment
Banking Division at Goldman Sachs in the UK and Germany. He was with Bayerische Vereinsbank from
1985 to 1987. Currently, Dr. Jentzsch serves as the Deputy Chairman of the Supervisory Board at AIL
Leasing Munchen.
Herbert Kauffmann

Since:2009
Age:65
Mr. Kauffmann has been a member of the Supervisory Board at adidas since 2009. He is an Independent
Management Consultant. Mr. Kauffmann also serves as the Chairman of the Supervisory Board at
Uniscon universal identity control and a member of the Supervisory Board at DEUTZ. Previously, he held
various leadership positions, including Chief Financial Officer and Chief Information Officer at Freightliner
Cooperation; Head of Corporate Planning at Mercedes-Benz; Head of Group Controlling at Daimler-Benz;
and Senior Vice President at Daimler.
Katja Kraus

Since:2014
Age:46
Ms. Kraus has been a member of the Supervisory Board at adidas since 2014. She served as a member
of the Management Board at Hamburger from 2003 to 2011. Ms. Kraus has also been the Managing
Partner at Jung von Matt/sports since 2013. Earlier, between 1998 and 2003, she served as the
Spokesperson at Eintracht Frankfurt; and from 1997 to 1998 as employee of the Public Relations
department at adidas-Salomon.
Kathrin Menges

Since:2014
Age:52
Ms. Menges has been a member of the Supervisory Board at adidas since 2014. She joined Henkel in
1999 and has been its Executive Vice President of Human Resources and Infrastructure Services since
2012. Previously, Ms. Menges held various positions at Henkel, including Corporate Director of Human
Resources for Cosmetic/Toiletries; Corporate Senior Vice President of Human Resources; and Executive
Vice President of Human Resources. She started her career as a Teacher in 1988. Currently, Ms.
Menges serves as a member of the Supervisory Boards at various Henkel subsidiaries such as Henkel
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Central Eastern Europe, Henkel Nederland and Henkel Norden (Finland and Sweden).
Roland Nosko

Since:2004
Age:58
Mr. Nosko has been a member of the Supervisory Board at adidas since 2004. He is the District Manager
at IGBCE. Mr. Nosko is also the Deputy Chairman of the Supervisory Board at CeramTec. He serves as a
member at Industrial Union IG Chemie-Papier-Keramik (since 1973); and Secretary at the Industrial
Union IG Chemie-Papier-Keramik (since 1987).
Hans Ruprecht

Since:2002
Age:62
Mr. Ruprecht has been a member of the Supervisory Board at adidas since 2002. He has also been the
Sales Director of Customer Service for Global Sales at the company since 1998. Mr. Ruprecht has been
associated with adidas since 1987 and served in various positions, including Sales Representative for
Footware, Regional Sales Director and Sales Manager of Customer Service for Germany. Between 1969
and 1986, he held various assignments at Goldpfeil Ludwig Krumm.
Nassef Sawiris

Since:2016
Age:55
Mr. Sawiris has been a member of the Supervisory Board at adidas since 2016. He has also been the
Chief Executive Officer at OCI since 1998. Mr. Sawiris is associated with the Orascom Group since 1982.
He has served as a Director at LafargeHolcim since 2015. Mr. Sawiris is also a member of the
International Leadership Board at Cleveland Clinic and a member of the Board of Trustees at The
University of Chicago.
Kurt Wittmann

Since:2016
Age:53
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Mr. Wittmann has been a member of the Supervisory Board at adidas since 2016. He has also been a
member of Central Works Council since 2014, a Full-time Works Council member Herzogenaurach and
member of European Works Council since 2012, and a member of Works Council Herzogenaurach since
1998. Mr. Wittmann was the Manager of Quality Control for Footwear at adidas from 2003 to 2011.
Heidi Thaler-Veh

Since:1994
Age:53
Ms. Thaler-Veh has been a member of the Supervisory Board at adidas since 1994. She also serves as
the Deputy Chairperson of Central Works Council at the company since 1998. Ms. Thaler-Veh is also the
Chairperson of the Works Council in Uffenheim; and an employee at Logistics Department Scheinfeld-
Uffenheim.
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Major Products & Services
Major Products & Services
MAJOR PRODUCTS & SERVICES

adidas, along with its subsidiaries, is engaged in the design, development, manufacture and marketing of
a broad range of athletic and sports lifestyle products. The company's key products and brands include
the following:
Footwear
Apparel
Hardware (bags and balls)
Golf equipment (metalwoods, unmetalwoods, irons, putters, golf balls, footwear and apparel)
Hockey equipment and apparel
adidas
TaylorMade
Adams Golf
adidas Golf
Ashworth
Five Ten
Reebok
Reebok-CCM Hockey
adidas NEO
Y-3
Porsche Design Sport by adidas
Runtastic
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adidas AG
Revenue Analysis
Revenue Analysis
REVENUE ANALYSIS
Overview
adidas recorded revenues of E16,915 million ($18,771.1 million) in FY2015, an increase of 16.4% over
FY2014. For FY2015, Western Europe, the company's largest geographic market, accounted for 28.9% of
the total revenues.
The company generates revenues through 13 business segments: Western Europe, North America,
Greater China, Russia/CIS, Latin America, Japan, the Middle East, South Korea, Southeast Asia/Pacific,
TaylorMade-adidas Golf, Reebok-CCM hockey, Runtastic and other centrally managed businesses. The
Middle East, South Korea and Southeast Asia/Pacific segments are aggregated to form the MEAA
segment; and TaylorMade-adidas Golf, Reebok-CCM Hockey, Runtastic and other centrally managed
businesses segments are combined to form other businesses segment. For FY2015, adidas reported its
revenues through the following segments: Western Europe (26.8% of the total revenues), North America
(16.3%), Greater China (14.6%), MEAA (14.1%), Latin America (10.5%), Japan (4.6%), Russia/CIS
(4.4%) and other businesses (8.7%).
Revenues by segment
In FY2015, the Western Europe segment recorded revenues of E4,539 million ($5,037.1 million), an
increase of 19.7% over FY2014.
The North America segment recorded revenues of E2,753 million ($3,055.1 million) in FY2015, an
The Greater China segment recorded revenues of E2,469 million ($2,739.9 million) in FY2015, an
The MEAA segment recorded revenues of E2,388 million ($2,650 million) in FY2015, an increase of
24.1% over FY2014.
The Latin America segment recorded revenues of E1,783 million ($1,978.6 million) in FY2015, an
The Japan segment recorded revenues of E776 million ($861.1 million) in FY2015, an increase of 4.3%
over FY2014.
The Russia/CIS segment recorded revenues of E739 million ($820.1 million) in FY2015, a decrease of
32.7% compared to FY2014.
The other businesses segment recorded revenues of E1,467 million ($1,628 million) in FY2015, an
increase of 8% over FY2014.
Revenues by geography*
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Revenue Analysis
Western Europe, adidas' largest geographical market, accounted for 28.9%** of the total revenues in
FY2015. Revenues from Western Europe reached E4,937 million ($5,478.7 million) in FY2015, an
North America accounted for 21.2% of the total revenues in FY2015. Revenues from North America
reached E3,620 million ($4,017.2 million) in FY2015, an increase of 15.9% over FY2014.
MEAA accounted for 14.8% of the total revenues in FY2015. Revenues from MEAA reached E2,525
million ($2,802.1 million) in FY2015, an increase of 21.8% over FY2014.
Greater China accounted for 14.6% of the total revenues in FY2015. Revenues from Greater China
Latin America accounted for 10.5% of the total revenues in FY2015. Revenues from Latin America
Japan accounted for 5.5% of the total revenues in FY2015. Revenues from Japan reached E947 million
($1,050.9 million) in FY2015, an increase of 3.3% over FY2014.
CIS accounted for 4.4% of the total revenues in FY2015. Revenues from CIS reached E757 million
($840.1 million) in FY2015, a decrease of 32.9% compared to FY2014.
*Includes revenues from discontinued operations.
**Percentages are rounded-off.
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adidas AG
SWOT Analysis
SWOT Analysis
SWOT ANALYSIS
adidas, along with its subsidiaries, is engaged in the design, development, manufacture and marketing of
a broad range of athletic and sports lifestyle products. Strong brand portfolio will not only enhance the
market position of the company but also boost its topline. However, widespread counterfeits deprive
revenues for adidas as well as dilute its brand image.
Strength Weakness
Leveraging strong brand portfolio to establish a robust Dependence on third party manufacturing
retail footprint
Focus on R&D has facilitated continuous development
of new products
Wide geographical footprint with increasing focus on
emerging markets
Opportunity Threat
Sponsorship agreements enhance the company's Exposure to foreign markets makes adidas susceptible
visibility to foreign currency fluctuations
Strategic acquisition of Runtastic Intense competition could hurt the company's margins
Growing online retail channel Increase in counterfeit products may hurt the brand
Growing global footwear market image
Strength
Leveraging strong brand portfolio to establish a robust retail footprint
adidas is one of the world's largest manufacturers of athletic footwear, apparel and accessories with
revenues of E16,915 million ($18,771.1 million). The company's leading market position is built on its
portfolio of strong brands like adidas, Reebok and TaylorMade. Its major brands, adidas and Reebok
cover the footwear and apparel categories, providing both performance and lifestyle products. The
TaylorMade brand, which designs and markets golf products, leads the golf industry in metalwood sales
and is also the leading brand on the world's six major professional golf tours. Also, Reebok-CCM Hockey
is one of the leading designers and marketers of ice hockey equipment and related apparel, with two of
the world's most well-recognized hockey brand names: Reebok Hockey and CCM.
The company is leveraging its brands to establish a strong retail presence and increase profit margins.
This is being supported by a strong double-digit growth in its retail business. The company's retail
revenues increased 11% on a currency-neutral basis in FY2015, primarily driven by a strong growth of
adidas brand sales. Currency-neutral comparable store sales increased 3% in FY2015, compared to the
previous year. This was due to sales growth across all the markets (excluding Russia/CIS). At the end of
FY2015, the retail segment of adidas operated 2,722 stores. During the year under review, the company
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adidas AG
SWOT Analysis
opened 284 new stores, closed 321 stores and remodeled 154 stores. In order to further grow its retail
footprint, the company plans to open around 100 new stores in FY2016. To facilitate proper assortment
and presentation at the point of sale, the company either manages its stores itself (own-retail and e-
commerce formats) or collaborates with its wholesale partners such as mono-branded franchise stores,
shop-in-shops, joint ventures and co-branded stores.
adidas' strong brand portfolio and enhanced retail presence enables easier customer recall as well as
helps it to drive topline growth and to attain competitive advantage over its peers.
Focus on R&D has facilitated continuous development of new products
adidas devotes significant resources and attention to develop new product concepts, processes,
production methods and digital applications for its brands. The company spent E139 million ($154.3
million) in FY2015 and E126 million ($139.8 million) in FY2014 on R&D.
The company’s approach towards R&D is based on an open source perspective, as clearly visible in its
numerous collaborations with athletes and consumers, universities, leading industry players as well as
national and international governments. adidas’ R&D activities are decentralized, with each of the
individual brands running their own R&D activities. For instance, R&D for the adidas brand is closely
integrated with sourcing, design and product marketing functions. Before beginning the product
development process, the company’s innovation team defines a development priority, based on
information gathered from various sources, including combination of consumer research and feedback,
competition analysis and own product testing. Based on the data collected from these sources, the
innovation teams analyze new materials, production processes and conduct scientific research to improve
the scope of idea generation. This approach helps the company to better understand the needs of its
customers and thereby develop products that suit their requirements. In addition to its internal R&D
efforts, adidas enters into long-term and exclusive partnerships with established third parties. This
strategy allows a greater flexibility and faster access to know-how as compared to substantial time and
resources required if developed within the company.
Leveraging its R&D expertise, the company developed and launched various innovations in recent years.
For instance, in October 2015, adidas unveiled a new performance footwear, Futurecraft 3D, a unique
3D-printed running shoe midsole. Futurecraft 3D can be customized to the cushioning needs of an
individual’s foot. Earlier, in FY2014, the company introduced the ClimaHeat range, which was designed
for athletes who require power insulation for training in cold weather. adidas also launched the world's
first knitted football boot, the adidas Samba Primeknit, in FY2014. During the same time, it introduced
adidas Primeknit FS, the world's first all-in-one knitted football boot and sock hybrid. In the recent times,
adidas has also been concentrating on enhancing its manufacturing capabilities through development of
innovative technologies. To this end, the company started commercial operations at its first
SPEEDFACTORY in Germany in May 2016. SPEEDFACTORY is an innovative manufacturing concept
that combines the design and development of sporting goods through an automated, decentralized and
flexible approach. Using this technology, high performance sporting goods can be created faster than
before. It also will have a significant impact on the environment by reducing the use of adhesives.
The company's strong focus on R&D has allowed it to uphold the technological leadership in most of its
product segments.
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adidas AG
SWOT Analysis
Wide geographical footprint with increasing focus on emerging markets
adidas sells its products virtually in every country around the world. The company has strong market
positions in all the markets it operates in. However, these days, it has been emphasizing on certain
markets that offer more medium- to long-term growth opportunities. To this end, adidas has been
expanding its operations in the emerging markets, with more focus on Greater China and Latin America in
particular. It also aims to build its market share in the US as well as Western European markets. adidas'
presence in several geographical regions will ensure diversified revenue stream and reduces the
business risk. It also makes the company less vulnerable to the vagaries of a single economy. The
emerging economies are growing at a faster pace as compared to the matured markets such as the US,
Japan, and certain European countries. adidas generated significant amount of revenues from these high
growth emerging markets in recent times. For instance, the company generated 14.6% of its total
revenues from Greater China in FY2015, 10.5% from Latin America and 14.8% from MEAA. Large
geographical footprint in diverse markets provides the company with the resilience to withstand a setback
in any one country and stabilizes revenue growth.
Weakness
Dependence on third party manufacturing
adidas outsources nearly 100% of production to independent third-party suppliers, primarily located in
Asia, to minimize production costs. During FY2015, 96% of the company's footwear volume for adidas,
Reebok and adidas Golf was produced in Asia. In comparison, the production in Europe and the
Americas together accounted for the remaining 4%. Moreover, Vietnam represents the company's largest
sourcing country with 41% of total volume followed by Indonesia (24%) and China (23%). Since the
company procures its merchandise from foreign manufacturers, it has little control over the product
quality. There have been concerns over unsafe Chinese consumer products in the past. The Consumer
Product Safety Commission has issued alerts and announced voluntary recalls by the US companies on
numerous products made in China. Any failure on the part of vendor and manufacturer to achieve and
maintain high manufacturing standards could result in manufacturing errors resulting in product recalls or
withdrawals, delays or interruptions of production, cost overruns or other problems that could seriously
harm adidas’ business. Overdependence on third party vendors and manufacturers limits the flexibility to
quickly shift to more productive product lines. It also exposes the company to various risks that could
affect its operations.
Opportunity
Sponsorship agreements enhance the company's visibility
adidas has sponsorship agreements with major associations for sports events across the world. For
instance, the company has sponsorship agreements for the FIFA World Cup, the UEFA EURO, the UEFA
Champions League, the NHL and the Boston Marathon. Additionally, adidas has a huge list of sports
teams, such as the national federations of Germany, Spain, Argentina, Russia, Mexico, Colombia,
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SWOT Analysis
Belgium and Japan, as well as top clubs Real Madrid, AC Milan, Flamengo, FC Bayern Munich, Juventus
and Manchester United in football, the New Zealand All Blacks and France in rugby, and American
universities such as UCLA, Arizona State and Miami. The list also includes individuals such as well-
known football players Mesut Ozil, Lionel Messi, Gareth Bale and James Rodriguez; basketball stars
Derrick Rose, James Harden and Damian Lillard; marathon record holder Dennis Kimetto; American
football players Aaron Rodgers and Von Miller; and tennis players, Caroline Wozniacki and Angelique
Kerber. adidas also has various strategic partnerships and collaborations with well-known designers and
design studios, such as with Yohji Yamamoto, Stella McCartney, Raf Simons and Rick Owns; as well as
with creative personalities across the entertainment industry, including Kanye West, Pharrell Williams and
Rita Ora.
Furthermore, Reebok partners with well-known fitness movements and organizations as well as skilled
people in the fitness industry in order to promote its key concepts. Reebok partnerships include UFC,
CrossFit (including the CrossFit Games), Spartan Race and Les Mills.
Such partnerships strengthen the presence of adidas and Reebok brands in the sports-inspired lifestyle
market.
Strategic acquisition of Runtastic
In August 2015, adidas acquired all the outstanding shares of Runtastic, one of the leading global players
in the health and fitness app market. The acquisition aligns with the company’s strategic business plan
‘Creating the New’. Founded in 2009, Runtastic has a strong and unique industry position. Runtastic app
is available in 18 different languages and operates through a multi-app strategy with more than 20 apps
covering a wide range of endurance, health and fitness activities. With high user satisfaction and a
potential pipeline of innovative concepts, Runtastic’s performance is expected to be robust in the next few
years. The acquisition offers adidas with an opportunity to grow a highly engaged athlete user base and
leverage the power of its extensive product portfolio.
Complementary business acquisitions such as this helps the company to further strengthen its market
position. They also expand adidas’ addressable market.
Growing online retail channel
The growing preference of customers to shop online has boosted the online retail trade in the US, Europe
and Asia. According to the US Department of Commerce, the online retail sales (adjusted for seasonal
variation) in the US increased from $169.8 billion in 2010 to $341.6 billion in 2015, representing a
compound annual growth rate (CAGR) of 15%. e-commerce sales increased 14.8% in 2015 over the
previous year. Total retail sales, on the other hand, grew by only 1.6% during the same period. e-
commerce sales accounted for 7.3% of total retail sales in 2015, compared to 4.4% in 2010. Furthermore,
the US retail e-commerce sales for the second quarter of 2016 was $97.3 billion, an increase of 15.8%
from the second quarter of 2015. A similar trend is noticed in the European market. According to
MarketLine, the European online retail sector grew by 12.2% in 2015 to reach a value of $210.2 billion. By
2020, the European online retail sector is forecast to have a value of $353.9 billion, an increase of 68.4%
since 2015. The Asia-Pacific market is also expected to witness strong growth in online retail sales in the
next few years.
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adidas AG
SWOT Analysis
The company offers Reebok, adidas and TaylorMade products through the e-commerce platform. In
2012, adidas launched a fully integrated brand and store site, providing a single destination for each of its
brand's consumers. In addition, the company launched new country-specific e-shops globally for both
adidas and Reebok. Currently, adidas operates approximately 50 own e-commerce sites. The company is
also engaged in developing services that meet specific functional requirements of its clients. For instance,
through ‘Inventory Check’ feature, adidas allows its online shoppers to view in-store product availability.
Its ‘Click & Collect’ service allows consumers to reserve products for pick-up from a local store; while the
‘Ship from Store’ feature enables the company to transform its stores into mini distribution centers,
thereby, serving the customers at a faster rate. Further, the ‘Endless Aisle’ option offers access to a full
range of products to the in-store visitors through the company’s e-commerce platform.
During FY2015, sales from adidas and Reebok e-commerce platforms grew by 42% on a currency-neutral
basis compared to FY2014. Online channel, due to several key characteristics such as convenience and
lower costs, is likely to be a key driver for sales growth in the near future. Additionally, online presence
will enable adidas to tap into the growing online retail sales globally which would, in turn, lead to
increased sales.
Growing global footwear market
The global footwear market has grown at a stable rate in recent years. According to MarketLine
estimates, the global footwear market had total revenues of $270,136.2 million in 2015, representing a
CAGR of 5.2% between 2011 and 2015. In comparison, the Asia-Pacific and the US markets grew with
CAGRs of 9.4% and 2.9%, respectively, over the same period, to reach respective values of $91,163.7
million and $67,253.7 million in 2015. The global footwear market is expected to reach a value of
$358,583.8 million by the end of 2020, an increase of 32.7% since 2015. Comparatively, the Asia-Pacific
and the US markets will grow with CAGRs of 9.1% and 2.5%, respectively, over the same period, to reach
respective values of $141,066.1 million and $76,091.3 million in 2020. adidas, through its strong brand
portfolio and wide geographic presence, is well-positioned to capitalize on the favorable trends in the
global footwear market.
Threat
Exposure to foreign markets makes adidas susceptible to foreign currency fluctuations
adidas sells its products throughout the world. As a result, it earns revenues, pays expenses, owns
assets and incurs liabilities in countries using various currencies. Since a significant portion of the
company's revenues are generated outside the euro currency region and the procurement of production
material and funding are also organized on a worldwide basis, the currency risk is an extremely important
factor for adidas' earnings. The effect of changes in demand and refinancing conditions and fluctuations
in exchange rates has a significant impact on the company’s earnings. The value of adidas’ equity
investment in foreign countries may fluctuate based upon changes in foreign currency exchange rates.
These fluctuations, which are recorded in a cumulative translation adjustment account, may result in
losses in the event a foreign subsidiary is sold or closed at a time when the foreign currency is weaker
than when the company initially invested in the country. Any unfavorable change in other currencies
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SWOT Analysis
would have an adverse effect on the company’s profitability.
Intense competition could hurt the company's margins
The market for sporting goods is intensely competitive in the US and across geographies. adidas
competes internationally with a large number of athletic and leisure shoe companies, athletic and leisure
apparel companies, sports equipment companies and companies with diversified lines of athletic and
leisure footwear and apparel and equipment. The company faces competition from NIKE and PUMA in
the international market. In the US, adidas competes with regional players such as Callaway Golf and
New Balance Athletics. Besides, the company also faces competition from the cheaper imported footwear
from Asian countries like China. Thus, intense competition and availability of cheaper products could put
pressure on the price of products and therefore affect the company's margins.
Increase in counterfeit products may hurt the brand image
The spread of counterfeit goods has become global and the range of goods subject to infringement has
increased significantly. Some of the major factors that led to an increased trade in counterfeit products
include growing internet usage, extension of international supply chains and more recently, the global
economic downturn that led customers to look for low cost alternatives. According to the Intellectual
Property Rights (IPR) Seizure Statistics by Customs and Border Protection (CBP) Office of International
Trade, the number of IPR seizures reached 28,865 in 2015, an increase of nearly 25% compared to
2014. According to European Commission, the number of detention cases registered by customs reached
81,098 in 2014. As a result, companies such as adidas, which offer branded products, are likely to suffer
more damage from counterfeit goods. For instance, in January 2016, Xiamen Customs in East China's
Fujian province seized over 14,000 pairs of fake adidas, NIKE and Puma shoes with a market value of
$150,000. Besides revenue losses, counterfeits also affect the company's brand because of low product
quality and reduce consumer confidence in branded products, thereby affecting sales.
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adidas AG
Top Competitors
Top Competitors
TOP COMPETITORS
The following companies are the major competitors of adidas AG
Callaway Golf Company

New Balance Athletic Shoe, Inc.
NIKE, Inc.
Puma SE
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adidas AG
Company View
Company View
COMPANY VIEW
An excerpt from the ‘Full Year 2015 Results’ is given below. This has been taken from the company’s
press release.
adidas Group currency-neutral sales increase 10% in 2015
In 2015, Group revenues increased 10% on a currency-neutral basis, driven by double-digit growth at
adidas and mid-single-digit increases at Reebok. Currency translation effects had a positive impact on
sales in euro terms. Group revenues grew 16% to € 16.915 billion in 2015 from € 14.534 billion in 2014.
Currency-neutral adidas revenues grew 12%, driven by double-digit sales increases in Western Europe,
Greater China, Latin America and MEAA. Currency-neutral Reebok sales were up 6% versus the prior
year, reflecting double-digit growth in Western Europe, Greater China, Latin America and MEAA.
Revenues at TaylorMade-adidas Golf decreased 13% currency-neutral, due to sales declines in all
markets except Latin America and MEAA.
Currency-neutral sales grow in most market segments
From a segmental perspective, the combined currency-neutral sales of the adidas and Reebok brands
grew in most market segments. Revenues in Western Europe increased 17% on a currency-neutral basis,
driven by double-digit sales growth in the UK, Italy, France and Spain. Currency-neutral sales in North
America increased 5%. Revenues in Greater China grew 18% on a currency-neutral basis, while
currency-neutral sales in Russia/CIS declined 11%. In Latin America, revenues grew 12% on a currency-
neutral basis, driven by double-digit growth in Argentina, Mexico, Chile, Peru and Colombia. In Japan,
sales remained stable on a currency-neutral basis. Revenues in MEAA grew 14% on a currency-neutral
basis, driven by double-digit growth in South Korea, the United Arab Emirates, Turkey, Israel and
Australia.
Revenues in Other Businesses were down 3% on a currency-neutral basis. High-single-digit sales

increases at Reebok-CCM Hockey and double-digit sales increases in Other centrally managed
businesses were more than offset by sales declines at TaylorMade-adidas Golf.
Group gross margin increases 0.6 percentage points
In 2015, gross profit for the adidas Group increased 18% to € 8.168 billion versus € 6.924 billion in the
prior year. Gross margin of the adidas Group increased 0.6 percentage points to 48.3% (2014: 47.6%),
driven by a more favourable pricing, channel and product mix at adidas and Reebok, which more than
offset negative currency effects, higher input costs as well as lower product margins at TaylorMade-
adidas Golf.
Other operating expenses as a percentage of sales up 0.4 percentage points due to higher marketing
investments
Other operating expenses increased 18% to € 7.289 billion in 2015 (2014: € 6.203 billion) and, as a
percentage of sales, grew 0.4 percentage points to 43.1% (2014: 42.7%). This development was primarily
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adidas AG
Company View
due to an increase in point-of-sale and marketing investments, which increased 22% to € 2.348 billion in
2015 (2014: € 1.923 billion), reflecting the Group’s planned efforts to further strengthen brand desirability.
As a result, the Group’s point-of-sale and marketing investments as a percentage of sales increased by
0.6 percentage points to 13.9% (2014: 13.2%), in line with management’s previous guidance. While
operating overhead expenses grew 15% to € 4.941 billion in 2015 (2014: € 4.280 billion), mainly as a
result of an increase in costs related to logistics, sales expenditure and central administration, as a
percentage of sales, however, operating overhead expenses decreased 0.2 percentage points to 29.2%
(2014: 29.4%).
Operating margin excluding goodwill impairment decreases 0.1 percentage points to 6.5%
Group operating profit increased 20% to € 1.059 billion in 2015 versus € 883 million in 2014. The
operating margin of the adidas Group increased 0.2 percentage points to 6.3% (2014: 6.1%). Excluding
the goodwill impairment losses, operating profit grew 14% to € 1.094 billion from € 961 million in 2014,
representing an operating margin of 6.5%, down 0.1 percentage points from the prior year level (2014:
6.6%). This development was due to higher other operating expenses as a percentage of sales, reflecting
the significant increase in brand-building investments, which more than offset the increase in the gross
margin.
Net income from continuing operations excluding goodwill impairment increases 12%
The Group’s tax rate increased 1.5 percentage points to 34.0% in 2015 (2014: 32.5%). Excluding the
goodwill impairment losses, the effective tax rate grew 3.2 percentage points to 32.9% from 29.7% in
2014, mainly due to the non-recognition of deferred tax assets. The Group’s net income from continuing
operations increased 22% to € 686 million in the full year of 2015 from € 564 million in 2014. Excluding
the goodwill impairment losses, net income from continuing operations was up 12% to € 720 million
(2014: € 642 million).
Losses from discontinued operations total € 46 million
In 2015, the Group incurred losses from discontinued operations of € 46 million, net of tax, related to the
Rockport operating segment (2014: losses of € 68 million). Losses from discontinued operations in 2015
were mainly due to the loss from the sale, net of tax, in the amount of € 32 million and the loss from
Rockport’s operating activities of € 13 million.
Net income attributable to shareholders excluding goodwill impairment increases 18%
The Group’s net income attributable to shareholders grew 29% to € 634 million in 2015 from € 490 million
in 2014. Excluding the goodwill impairment losses, net income attributable to shareholders was up 18% to
€ 668 million (2014: € 568 million). Basic and diluted EPS from continuing and discontinued operations
increased 34% to € 3.15 in 2015 (2014: € 2.35). Excluding the goodwill impairment losses, basic and
diluted EPS from continuing and discontinued operations increased 22% to € 3.32 from € 2.72 in 2014.
The weighted average number of shares used in the calculation was 201,536,418 (2014: 208,776,457).
Average operating working capital as a percentage of sales decreases to 20.5%
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Company View
Group inventories increased 23% to € 3.113 billion at the end of December versus € 2.526 billion in 2014.
On a currency-neutral basis, inventories grew 25%, reflecting higher stock levels to support the Group’s
top-line momentum. Operating working capital increased 11% to € 3.138 billion at the end of December
2015 compared to € 2.821 billion in 2014. Average operating working capital as a percentage of sales
decreased 1.9 percentage points to 20.5% (2014: 22.4%), reflecting the strong revenue growth in 2015 as
well as the company’s continued focus on tight working capital management.
Net borrowings increase to € 460 million
Net borrowings at December 31, 2015 amounted to € 460 million, compared to net borrowings of € 185
million in 2014, representing an increase of € 275 million. This development is mainly a result of the
utilisation of cash for the share buyback programme in an amount of € 301 million.
Strong top- and bottom-line trends to continue in 2016
adidas Group sales are expected to increase at a rate between 10% and 12% on a currency-neutral basis
in 2016. The positive sales development will be supported by rising consumer spending, providing a
positive backdrop for the continued growth and expansion of the sporting goods industry. In addition,
Group sales development will be favourably impacted by the extensive pipeline of new and innovative
products, increased brand-building activities and the positive effects from major sporting events, including
the UEFA EURO 2016.
In 2016, costs for the Group’s Asian-dominated sourcing are projected to increase as a result of less
favourable US dollar hedging rates and rising labour expenditures. However, these negative effects are
expected to be largely offset by the positive effects from a more favourable pricing, product and regional
mix at both adidas and Reebok and further enhancements in the Group’s channel mix, driven by the
continued expansion of controlled space activities. Higher product margins at TaylorMade-adidas Golf are
also expected to help limit the overall gross margin compression. As a result, the Group gross margin is
forecasted to be in a range between 47.3% and 47.8% and thus only between 50 and 100 basis points
below the prior year level (2015: 48.3%) despite the significant cost increase.
The Group’s other operating expenses as a percentage of sales are expected to decrease in 2016
compared to the prior year level of 43.1%. While expenditure for point-of-sale and marketing investments
as a percentage of sales is projected to be around the prior year level (2015: 13.9%), operating overhead
expenditure as a percentage of sales is forecasted to be below the prior year level (2015: 29.2%). Higher
administrative and personnel expenses in the Group’s sales and marketing organisation, aimed at
supporting the successful execution of ‘Creating the New’, will be offset by significant leverage in other
areas.
In 2016, Management expects the operating margin excluding goodwill impairment to remain at least
stable compared to the prior year level of 6.5%. Lower other operating expenses as a percentage of sales
are forecasted to at least offset the decline in gross margin. Net income from continuing operations
excluding goodwill impairment is projected to increase at a rate between 10% and 12% to around € 800
million compared to the 2015 level of € 720 million.
Management to propose dividend of € 1.60
adidas AG Page 32
© MarketLine
adidas AG
Company View
As a result of the stellar operational performance in 2015, the Group’s strong financial position as well as
Management’s confidence in the Group’s long-term growth aspirations, the adidas AG Executive and
Supervisory Boards will recommend paying an increased dividend of € 1.60 to shareholders at the Annual
General Meeting on May 12, 2016 (2014: € 1.50). Based on the number of shares outstanding at the end
of 2015, the total payout of € 320 million (2014: € 306 million) reflects a payout ratio of 47.9% of net
income attributable to shareholders, excluding goodwill impairment losses. The payout ratio for 2015 is at
the upper end of the increased target range of between 30% and 50% of net income attributable to
shareholders as defined in the Group’s dividend policy.
adidas AG Page 33
© MarketLine
adidas AG
Locations And Subsidaries
LOCATIONS AND SUBSIDARIES
Head Office
adidas AG
Adi-Dassler-Strasse 1
Herzogenaurach
Herzogenaurach
DEU
Phone:49 9132 840
Fax:49 9132 842241
www.adidas-group.com
Other Locations and Subsidiaries
adidas America Inc. Adidas International Marketing B.V.

5055 N Greeley Avenue Atlas Arena
Portland Africa Building
Oregon Hoogoorddreef 9-A
Portland NLD
Oregon Phone:31 20 573 4573
USA Fax:31 20 573 4586
www.adidas.com
adidas Latin America, S.A. ADIDAS SOURCING LIMITED
Business Park HKG
Avenue Principal y Avenue La Rotonda
Torre Sur 4th floor
PAN
Phone:507 303 5700
Fax:507 303 5801
Reebok World Headquarters runtastic GmbH
1895 J.W. Foster Boulevard Pluskaufstrasse 7 Business Center
Canton Pasching bei
Massachusetts 02021 Linz
USA Linz
AUT
Fax:43 7229 23327
www.runtastic.com
Taylor Made Golf Company, Inc.
5545 Fermi Court
Carlsbad
California
Carlsbad
adidas AG Page 34
© MarketLine
adidas AG
California
USA
www.ashworthinc.com
adidas AG Page 35
© MarketLine
adidas AG
Financial Overview
Financial Overview
FINANCIAL OVERVIEW
Summarized Statement
*Note: Eliminations not included, all figures in Million except per share data.
Parameters Currency 2011 2012 2013 2014 2015

Income Statements
Total Revenue EUR 13,322.00 14,883.00 14,203.00 14,534.00 16,915.00
Gross Profit EUR 6,329.00 7,103.00 7,001.00 6,924.00 8,167.00
Operating Income EUR 953.00 920.00 1,178.00 881.00 1,058.00
Net Income EUR 613.00 526.00 787.00 490.00 634.00
Diluted Normalized EPS EUR 2.93 3.30 3.87 2.98 3.54
Balance Sheet
Total Current Assets EUR 6,328.00 6,877.00 6,857.00 7,347.00 7,497.00
Total Assets EUR 11,237.00 11,651.00 11,599.00 12,417.00 13,343.00
Total Current Liabilities EUR 4,338.00 4,374.00 4,732.00 4,378.00 5,364.00
Total Liabilities EUR 6,100.00 6,347.00 6,110.00 6,792.00 7,677.00
Total Equity EUR 5,137.00 5,304.00 5,489.00 5,625.00 5,666.00
Total Common Shares EUR 209.22 209.22 209.22 204.33 200.20
Outstanding
Cash Flow
Cash from Operating Activities EUR 807.00 942.00 634.00 701.00 1,090.00
Cash from Investing Activities EUR -566.00 -217.00 -243.00 -537.00 -591.00
Cash from Financing Activities EUR -500.00 42.00 -439.00 -118.00 -691.00
Net Change in Cash EUR -244.00 764.00 -83.00 96.00 -318.00
Detailed Statement
*Note: Eliminations not included, all figures in Million except per share data.
Parameters Currency 2011 2012 2013 2014 2015

Income Statements
Revenue EUR 13,322.00 14,883.00 14,203.00 14,534.00 16,915.00
Total Revenue EUR 13,322.00 14,883.00 14,203.00 14,534.00 16,915.00
Cost of Revenue, Total EUR 6,993.00 7,780.00 7,202.00 7,610.00 8,748.00
Gross Profit EUR 6,329.00 7,103.00 7,001.00 6,924.00 8,167.00
Selling/ General/ Admin. EUR 5,199.00 5,755.00 5,604.00 5,751.00 6,792.00
Expenses, Total
Research & Development EUR 115.00 128.00 124.00 126.00 139.00
adidas AG Page 36
© MarketLine
adidas AG
Financial Overview
Depreciation/ Amortization EUR 249.00 263.00 282.00 323.00 354.00

Unusual Expense (Income) EUR -1.00 262.00 52.00 77.00 33.00
Other Operating Expenses, EUR -186.00 -225.00 -239.00 -234.00 -209.00
Total
Total Operating Expense EUR 12,369.00 13,963.00 13,025.00 13,653.00 15,857.00
Operating Income EUR 953.00 920.00 1,178.00 881.00 1,058.00
Other, Net EUR 1.00 0.00 1.00 0.00 2.00
Net Income Before Taxes EUR 869.00 851.00 1,113.00 835.00 1,039.00
Provision for Income Taxes EUR 261.00 327.00 340.00 271.00 353.00
Net Income After Taxes EUR 608.00 524.00 773.00 564.00 686.00
Minority Interest EUR 5.00 2.00 -3.00 -6.00 -6.00
Net Income Before Extra. Items EUR 613.00 526.00 770.00 558.00 680.00
Total Extraordinary Items EUR 0.00 0.00 17.00 -68.00 -46.00
Net Income EUR 613.00 526.00 787.00 490.00 634.00
Income Available to Com Excl EUR 613.00 526.00 770.00 558.00 680.00
ExtraOrd
Income Available to Com Incl EUR 613.00 526.00 787.00 490.00 634.00
ExtraOrd
Dilution Adjustment EUR 0.00 0.00 0.00 0.00 0.00
Diluted Net Income EUR 613.00 526.00 787.00 490.00 634.00
Diluted Weighted Average EUR 209.22 209.22 208.78 208.78 201.54
Shares
Diluted EPS Excluding EUR 2.93 2.51 3.69 2.67 3.37
ExtraOrd Items
Diluted Normalized EPS EUR 2.93 3.30 3.87 2.98 3.54
DPS - Common Stock Primary EUR 1.00 1.35 1.50 1.50 1.60
Issue
Balance Sheet
Cash & Equivalents EUR 906.00 1,670.00 1,587.00 1,683.00 1,365.00
Short Term Investments EUR 591.00 396.00 171.00 133.00 165.00
Cash and Short Term EUR 1,497.00 2,066.00 1,758.00 1,816.00 1,530.00
Investments
Accounts Receivable - Trade, EUR 1,595.00 1,688.00 1,809.00 1,946.00 2,049.00
Net
Total Receivables, Net EUR 1,823.00 1,900.00 2,028.00 2,167.00 2,320.00
Total Inventory EUR 2,502.00 2,486.00 2,634.00 2,526.00 3,113.00
Prepaid Expenses EUR 232.00 231.00 236.00 194.00 218.00
Other Current Assets, Total EUR 274.00 194.00 201.00 644.00 316.00
Total Current Assets EUR 6,328.00 6,877.00 6,857.00 7,347.00 7,497.00
Property/ Plant/ Equipment, EUR 2,071.00 2,261.00 2,419.00 2,824.00 3,221.00
Total - Gross
adidas AG Page 37
© MarketLine
adidas AG
Financial Overview
Accumulated Depreciation, EUR -1,107.00 -1,167.00 -1,181.00 -1,370.00 -1,583.00

Total
Property/ Plant/ Equipment, EUR 963.00 1,095.00 1,238.00 1,454.00 1,638.00
Total - Net
Goodwill, Net EUR 1,553.00 1,281.00 1,204.00 1,169.00 1,392.00
Intangibles, Net EUR 1,663.00 1,651.00 1,583.00 1,594.00 1,816.00
Long Term Investments EUR 121.00 133.00 144.00 156.00 217.00
Other Long Term Assets, Total EUR 609.00 614.00 573.00 697.00 783.00
Total Assets EUR 11,237.00 11,651.00 11,599.00 12,417.00 13,343.00
Accounts Payable EUR 1,887.00 1,790.00 1,825.00 1,652.00 2,024.00
Accrued Expenses EUR 1,222.00 1,344.00 1,373.00 1,561.00 2,178.00
Notes Payable/ Short Term EUR 0.00 0.00 0.00 0.00 0.00
Debt
Current Port. of LT Debt/ EUR 351.00 363.00 791.00 326.00 448.00
Capital Leases
Other Current liabilities, Total EUR 878.00 877.00 743.00 839.00 714.00
Total Current Liabilities EUR 4,338.00 4,374.00 4,732.00 4,378.00 5,364.00
Long Term Debt EUR 996.00 1,211.00 655.00 1,584.00 1,475.00
Capital Lease Obligations EUR 4.00 13.00 9.00 7.00 6.00
Total Long Term Debt EUR 1,000.00 1,224.00 664.00 1,591.00 1,481.00
Total Debt EUR 1,351.00 1,587.00 1,455.00 1,917.00 1,929.00
Deferred Income Tax EUR 430.00 368.00 338.00 390.00 368.00
Minority Interest EUR -9.00 -13.00 -8.00 -7.00 -18.00
Other Liabilities, Total EUR 341.00 394.00 384.00 440.00 482.00
Total Liabilities EUR 6,100.00 6,347.00 6,110.00 6,792.00 7,677.00
Common Stock, Total EUR 209.00 209.00 209.00 204.00 200.00
Additional Paid-In Capital EUR 722.00 777.00 777.00 777.00 777.00
Retained Earnings EUR 4,099.00 4,390.00 4,900.00 4,724.00 4,753.00
(Accumulated Deficit)
Other Equity, Total EUR 107.00 -72.00 -397.00 -80.00 -64.00
Total Equity EUR 5,137.00 5,304.00 5,489.00 5,625.00 5,666.00
Total Liabilities & Shareholders' EUR 11,237.00 11,651.00 11,599.00 12,417.00 13,343.00
Equity
Total Common Shares EUR 209.22 209.22 209.22 204.33 200.20
Outstanding
Cash Flow
Net Income/ Starting Line EUR 869.00 851.00 1,113.00 835.00 1,039.00
Depreciation/ Depletion EUR 253.00 536.00 340.00 405.00 393.00
Non-Cash Items EUR 57.00 43.00 87.00 33.00 97.00
Changes in Working Capital EUR -372.00 -488.00 -906.00 -572.00 -439.00
Cash from Operating Activities EUR 807.00 942.00 634.00 701.00 1,090.00
adidas AG Page 38
© MarketLine
adidas AG
Financial Overview
Capital Expenditures EUR -376.00 -434.00 -474.00 -548.00 -513.00

Other Investing Cash Flow EUR -190.00 217.00 231.00 11.00 -78.00
Items, Total
Cash from Investing Activities EUR -566.00 -217.00 -243.00 -537.00 -591.00
Financing Cash Flow Items EUR -3.00 -11.00 -1.00 -4.00 -7.00
Total Cash Dividends Paid EUR -167.00 -209.00 -282.00 -314.00 -303.00
Issuance (Retirement) of Stock, EUR 0.00 0.00 0.00 -300.00 -301.00
Net
Issuance (Retirement) of Debt, EUR -330.00 262.00 -156.00 500.00 -80.00
Net
Cash from Financing Activities EUR -500.00 42.00 -439.00 -118.00 -691.00
Foreign Exchange Effects EUR 15.00 -3.00 -35.00 50.00 -126.00
Net Change in Cash EUR -244.00 764.00 -83.00 96.00 -318.00
Cash Interest Paid EUR 113.00 90.00 68.00 59.00 55.00
Cash Taxes Paid EUR 314.00 380.00 390.00 284.00 386.00
Summarized Interim Statement
Income Statements Currency Dec-2015 (3 Mar-2016 (3 Jun-2016 (3 Sep-2016 (3

Months) Months) Months) Months)
Net Income EUR -44.00 352.00 290.00 386.00
Gross Profit EUR 1,965.00 2,358.00 2,159.00 2,574.00
Diluted Normalized EPS EUR -0.12 1.71 1.42 1.88
Operating Income EUR -24.00 490.00 414.00 563.00
Total Revenue EUR 4,167.00 4,769.00 4,422.00 5,413.00
Balance Sheet Currency Dec-2015 Mar-2016 Jun-2016 Sep-2016
Total Common Shares Outstanding EUR 200.20 200.20 200.20 200.31
Total Assets EUR 13,343.00 13,415.00 14,029.00 14,255.00
Total Liabilities EUR 7,677.00 7,736.00 8,237.00 8,129.00
Total Current Assets EUR 7,497.00 7,669.00 8,144.00 8,317.00
Total Current Liabilities EUR 5,364.00 5,464.00 5,942.00 6,269.00
Total Equity EUR 5,666.00 5,679.00 5,792.00 6,126.00
Cash Flow Currency Dec-2015 (12 Mar-2016 (3 Jun-2016 (6 Sep-2016 (9
Net Change in Cash EUR -318.00 -37.00 -230.00 -101.00
Cash from Financing Activities EUR -691.00 309.00 9.00 -116.00
Cash from Operating Activities EUR 1,090.00 -266.00 -74.00 376.00
Cash from Investing Activities EUR -591.00 -54.00 -146.00 -332.00
adidas AG Page 39
© MarketLine
adidas AG
Financial Overview
Detailed Interim Statement
Income Statements Currency Dec-2015 (3 Mar-2016 (3 Jun-2016 (3 Sep-2016 (3

Minority Interest EUR -1.00 0.00 -1.00 -1.00
Provision for Income Taxes EUR 8.00 146.00 119.00 159.00
Total Operating Expense EUR 4,191.00 4,279.00 4,008.00 4,850.00
Income Available to Com Incl EUR -44.00 351.00 291.00 386.00
ExtraOrd
DPS - Common Stock Primary EUR 1.60 0.00 0.00 0.00
Issue
Net Income Before Taxes EUR -25.00 497.00 410.00 545.00
Cost of Revenue, Total EUR 2,202.00 2,411.00 2,263.00 2,839.00
Net Income EUR -44.00 352.00 290.00 386.00
Dilution Adjustment EUR 0.00 2.00 3.00 2.00
Depreciation/ Amortization EUR 97.00 85.00 89.00 95.00
Other Operating Expenses, Total EUR -51.00 -56.00 -190.00 -47.00
Income Available to Com Excl EUR -34.00 350.00 291.00 385.00
ExtraOrd
Net Income Before Extra. Items EUR -34.00 351.00 290.00 385.00
Gross Profit EUR 1,965.00 2,358.00 2,159.00 2,574.00
Diluted Normalized EPS EUR -0.12 1.71 1.42 1.88
Diluted Net Income EUR -44.00 353.00 294.00 388.00
Operating Income EUR -24.00 490.00 414.00 563.00
Selling/ General/ Admin. Expenses, EUR 1,927.00 1,839.00 1,846.00 1,963.00
Total
Unusual Expense (Income) EUR 16.00 0.00 0.00 0.00
Total Revenue EUR 4,167.00 4,769.00 4,422.00 5,413.00
Total Adjustments to Net Income 0.00 -1.00 1.00 0.00
Diluted EPS Excluding ExtraOrd EUR -0.17 1.71 1.42 1.88
Items
Diluted Weighted Average Shares EUR 200.18 206.29 206.36 206.38
Other, Net EUR 1.00 1.00 1.00 0.00
Revenue EUR 4,167.00 4,769.00 4,422.00 5,413.00
Total Extraordinary Items EUR -10.00 1.00 0.00 1.00
Net Income After Taxes EUR -33.00 351.00 291.00 386.00
Balance Sheet Currency Dec-2015 Mar-2016 Jun-2016 Sep-2016
Goodwill, Net EUR 1,392.00 1,364.00 1,379.00 1,376.00
Long Term Debt EUR 1,481.00 1,499.00 1,490.00 1,012.00
adidas AG Page 40
© MarketLine
adidas AG
Financial Overview
Total Common Shares Outstanding EUR 200.20 200.20 200.20 200.31

Long Term Investments EUR 239.00 242.00 266.00 275.00
Other Liabilities, Total EUR 482.00 461.00 470.00 524.00
Cash & Equivalents EUR 1,365.00 1,328.00 1,135.00 1,264.00
Accrued Expenses EUR 1,684.00 1,664.00 1,803.00 1,942.00
Additional Paid-In Capital EUR 777.00 777.00 777.00 777.00
Accounts Receivable - Trade, Net EUR 2,049.00 2,517.00 2,356.00 2,715.00
Property/ Plant/ Equipment, Total - EUR 1,638.00 1,598.00 1,661.00 1,715.00
Net
Total Assets EUR 13,343.00 13,415.00 14,029.00 14,255.00
Total Liabilities EUR 7,677.00 7,736.00 8,237.00 8,129.00
Other Current Assets, Total EUR 501.00 532.00 640.00 547.00
Other Equity, Total EUR -64.00 -401.00 -260.00 -280.00
Total Current Assets EUR 7,497.00 7,669.00 8,144.00 8,317.00
Total Current Liabilities EUR 5,364.00 5,464.00 5,942.00 6,269.00
Retained Earnings (Accumulated EUR 4,753.00 5,103.00 5,075.00 5,429.00
Deficit)
Total Equity EUR 5,666.00 5,679.00 5,792.00 6,126.00
Other Current liabilities, Total EUR 1,147.00 1,316.00 1,322.00 1,382.00
Accounts Payable EUR 2,024.00 1,573.00 1,857.00 1,689.00
Deferred Income Tax EUR 368.00 328.00 352.00 341.00
Cash and Short Term Investments EUR 1,737.00 1,605.00 1,538.00 1,750.00
Current Port. of LT Debt/ Capital EUR 509.00 911.00 960.00 1,256.00
Leases
Total Debt EUR 1,990.00 2,410.00 2,450.00 2,268.00
Intangibles, Net EUR 1,816.00 1,735.00 1,769.00 1,762.00
Minority Interest EUR -18.00 -16.00 -17.00 -17.00
Notes Payable/ Short Term Debt EUR 0.00 0.00 0.00 0.00
Total Long Term Debt EUR 1,481.00 1,499.00 1,490.00 1,012.00
Total Liabilities & Shareholders' EUR 13,343.00 13,415.00 14,029.00 14,255.00
Equity
Other Long Term Assets, Total EUR 761.00 807.00 810.00 810.00
Total Inventory EUR 3,113.00 2,939.00 3,514.00 3,203.00
Short Term Investments EUR 372.00 277.00 403.00 486.00
Total Receivables, Net EUR 2,146.00 2,593.00 2,452.00 2,817.00
Common Stock, Total EUR 200.00 200.00 200.00 200.00
Cash Flow Currency Dec-2015 (12 Mar-2016 (3 Jun-2016 (6 Sep-2016 (9
Issuance (Retirement) of Debt, Net EUR -80.00 308.00 331.00 206.00
Financing Cash Flow Items EUR -7.00 1.00 -2.00 -2.00
adidas AG Page 41
© MarketLine
adidas AG
Financial Overview
Net Change in Cash EUR -318.00 -37.00 -230.00 -101.00

Non-Cash Items EUR 97.00 14.00 8.00 8.00
Capital Expenditures EUR -513.00 -67.00 -201.00 -361.00
Net Income/ Starting Line EUR 1,039.00 497.00 907.00 1,452.00
Depreciation/ Depletion EUR 393.00 86.00 176.00 277.00
Foreign Exchange Effects EUR -126.00 -26.00 -19.00 -29.00
Cash Interest Paid EUR 55.00 9.00 16.00 23.00
Total Cash Dividends Paid EUR -303.00 0.00 -320.00 -320.00
Cash from Financing Activities EUR -691.00 309.00 9.00 -116.00
Cash from Operating Activities EUR 1,090.00 -266.00 -74.00 376.00
Cash Taxes Paid EUR 386.00 76.00 210.00 351.00
Issuance (Retirement) of Stock, Net EUR -301.00 0.00 0.00 0.00
Cash from Investing Activities EUR -591.00 -54.00 -146.00 -332.00
Other Investing Cash Flow Items, EUR -78.00 13.00 55.00 29.00
Total
Changes in Working Capital EUR -439.00 -863.00 -1,165.00 -1,361.00
Capital Market Ratios
Key Ratios December 05,2016

P/E (Price/Earnings) Ratio 41.79
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation 20.98
and Amortization)
Enterprise Value/Sales 1.73
Enterprise Value/Operating Profit 27.63
Enterprise Value/Total Assets 2.19
Dividend Yield 0.01
Market Cap 28,243.39
Enterprise Value 29,230.39
Note: The above ratios are based on

the share price as of December
05,2016, they are absolute numbers
adidas AG Page 42
© MarketLine
adidas AG
Financial Overview
Annual Ratios
Key Ratios Unit Currency 2011 2012 2013 2014 2015

Growth Ratios
Sales Growth % 11.11 11.72 -4.57 2.33 16.38
Operating Income Growth % 6.60 -3.46 28.04 -25.21 20.09
EBITDA Growth % 4.88 -0.36 25.22 -16.99 20.29
Net Income Growth % 8.11 -14.19 49.62 -37.74 29.39
EPS Growth % 11.17 12.76 17.41 -23.17 18.96
Working Capital Growth % 5.96 25.78 -15.10 39.72 -28.16
Equity Ratios
EPS (Earnings per Share) USD 2.93 2.51 3.69 2.67 3.37
Dividend per Share USD 1.00 1.35 1.50 1.50 1.60
Dividend Cover Absolute 2.93 1.86 2.46 1.78 2.11
Book Value per Share USD 24.55 25.35 26.24 27.53 28.30
Cash Value per Share USD 4.33 7.98 7.59 8.24 6.82
Profitability Ratios
Gross Margin % 47.51 47.73 49.29 47.64 48.28
Operating Margin % 7.15 6.18 8.29 6.06 6.25
Net Profit Margin % 4.60 3.53 5.54 3.37 3.75
Profit Markup % 90.50 91.30 97.21 90.99 93.36
PBT Margin (Profit Before Tax) % 6.52 5.72 7.84 5.75 6.14
Return on Equity % 11.93 9.92 14.34 8.71 11.19
Return on Capital Employed % 13.81 12.64 17.15 10.96 13.26
Return on Assets % 5.46 4.51 6.79 3.95 4.75
Return on Fixed Assets % 19.41 19.27 24.84 17.38 18.10
Return on Working Capital % 47.89 36.76 55.44 29.67 49.60
Cost Ratios
Operating Costs (% of Sales) % 92.85 93.82 91.71 93.94 93.75
Administration Costs (% of Sales) % 39.03 38.67 39.46 39.57 40.15
Liquidity Ratios
Current Ratio Absolute 1.46 1.57 1.45 1.68 1.40
Quick Ratio Absolute 0.88 1.00 0.89 1.10 0.82
Cash Ratio Absolute 0.35 0.47 0.37 0.41 0.29
Leverage Ratios
Debt to Equity Ratio Absolute 0.26 0.30 0.27 0.34 0.34
Net Debt to Equity Absolute 0.09 -0.02 -0.02 0.04 0.10
Debt to Capital Ratio Absolute 0.20 0.22 0.21 0.24 0.24
Efficiency Ratios
adidas AG Page 43
© MarketLine
adidas AG
Financial Overview
Asset Turnover Absolute 1.19 1.28 1.22 1.17 1.27

Fixed Asset Turnover Absolute 13.83 13.59 11.47 10.00 10.33
Inventory Turnover Absolute 2.79 3.13 2.73 3.01 2.81
Current Asset Turnover Absolute 2.11 2.16 2.07 1.98 2.26
Capital Employed Turnover Absolute 2.59 2.81 2.59 2.58 2.99
Working Capital Turnover Absolute 6.69 5.95 6.68 4.90 7.93
Revenue per Employee USD 0.00 0.00 0.00 0.00 293,566.36
Net Income per Employee USD 0.00 0.00 0.00 0.00 11,003.31
Capex to Sales % 2.82 2.92 3.34 3.77 3.03
R&D to Sales % 0.86 0.86 0.87 0.87 0.82
Interim Ratios
Key Ratios Currency December March June September Ratio Type

01,2015 01,2016 01,2016 01,2016
EPS (Earnings per EUR -0.17 1.71 1.43 1.88 Equity Ratios
Share)
Dividend per Share EUR 1.60 0.00 0.00 0.00 Equity Ratios
Book Value per Share EUR 28.30 28.37 28.93 30.58 Equity Ratios
Current Ratio Absolute 1.40 1.40 1.37 1.33 Liquidity Ratios
adidas AG Page 44
© MarketLine
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Company Overview ........................................................................................................3

Head Office adidas AG

adidas unveiled a pilot SPEEDFACTORY in Germany, in December 2015. SPEEDFACTORY uses

adidas-Salomon changed its name to adidas AG in 2006.

In 2006, the company completed the acquisition of Reebok.

It continued to grow and enter new markets during 1990s.

Name Job Title Board Compensation

Heidi Thaler-Veh Member, Supervisory Non Executive Board 53000 EUR

Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Board:Non Executive Board

Major Products & Services

MAJOR PRODUCTS & SERVICES

*Includes revenues from discontinued operations.

**Percentages are rounded-off.

Leveraging strong brand portfolio to establish a robust retail footprint

Focus on R&D has facilitated continuous development of new products

Wide geographical footprint with increasing focus on emerging markets

Dependence on third party manufacturing

Sponsorship agreements enhance the company's visibility

Strategic acquisition of Runtastic

Growing online retail channel

Growing global footwear market

Exposure to foreign markets makes adidas susceptible to foreign currency fluctuations

would have an adverse effect on the company’s profitability.

Intense competition could hurt the company's margins

Increase in counterfeit products may hurt the brand image

Callaway Golf Company

adidas Group currency-neutral sales increase 10% in 2015

Currency-neutral sales grow in most market segments

Revenues in Other Businesses were down 3% on a currency-neutral basis. High-single-digit sales

Group gross margin increases 0.6 percentage points

Losses from discontinued operations total € 46 million

Net income attributable to shareholders excluding goodwill impairment increases 18%

Average operating working capital as a percentage of sales decreases to 20.5%

Net borrowings increase to € 460 million

Strong top- and bottom-line trends to continue in 2016

Management to propose dividend of € 1.60

Locations And Subsidaries

LOCATIONS AND SUBSIDARIES

Other Locations and Subsidiaries

adidas America Inc. Adidas International Marketing B.V.

Parameters Currency 2011 2012 2013 2014 2015

Parameters Currency 2011 2012 2013 2014 2015

Depreciation/ Amortization EUR 249.00 263.00 282.00 323.00 354.00

Accumulated Depreciation, EUR -1,107.00 -1,167.00 -1,181.00 -1,370.00 -1,583.00