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2012 ANNUAL REPORT adidas is all in


all day i dream about sports

ADIDAS ANNUAL REPORT 2010

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ADIDAS IS ALL IN » TABLE OF CONTENTS

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CORPORATE MISSION STATEMENT

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FIT FOR THE FUTURE

Our Mission To Our Shareholders Corporate Governance Report

07 09 11

Sports Performance » Running » Football » Basketball

17 21 23

Sports Style » Originals » Fashion Group

25 27

TABLE OF CONTENTS


29 33 35

GROUP BUSINESS PERFORMANCE Income Statement Cash Flow Statement

29 31

ADIDAS GROUP LOCATIONS Group locations

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CONSOLIDATED FINANCIAL STATEMENT Auditor's Report

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ADIDAS ANNUAL REPORT 2010

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CORPORATE MISSION STATEMENT Âť OUR MISSION

OUR MISSION The Adidas group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position. We are innovation and design leaders who will always seek to help athletes of all skill levels achieve peak performance with every product. We continuously improve the style, quality, look, feel and image of our products and we make sure our organizational structures to exceed consumer expectations to provide the highest value.

We are a global organization that is socially and environmentally responsible, that embraces creativity and diversity and is financially rewarding for our employees and shareholders. We are innovation and design leaders who will seek to help athletes of all skill levels achieve their peak and outmost performance with every product all the time.


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CORPORATE MISSION STATEMENT Âť TO OUR SHAREHOLDERS

After entering the wonderful 2010 with cautious optimism, the adidas Group can now turn back on a year characterised by recovery and success. For the adidas Group, this was such a year of major sports events such as the FIFA World Cup and the Olympic Winter Games. Furthermore, thanks to innovative products and marketing campaigns, all of our brands met with a very positive response


TO OUR SHAREHOLDERS among our consumers. The positive effects of the new organizational structure was also a contribution to a significant improvement of the adidas Group’s results from last year, 2010. In the past financial year, we regularly advised the Executive Board on the management of the company and carefully and regularly supervised its activities. In particular, we examined the legality, expediency and regularity of the Executive Board’s management. The Executive Board informed us regularly, extensively and in a timely manner through oral and written reports, both at Supervisory Board meetings and in the periods between our meetings. This information covered

the Group’s business policy as well as all relevant aspects of business planning, including finance, investment and personnel planning. We were also kept up-to-date on the very course and flow of the business, the operational position of adidas AG and the Group, the Group’s financial position and profitability, as well as all the major decisions and business transactions.

Herbert Heiner Chief Executive Officer

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CORPORATE MISSION STATEMENT Âť CORPORATE GOVERNANCE REPORT

CORPORATE GOVERNANCE REPORT INCLUDING THE DECLARATION ON CORPORATE GOVERNANCE

Responsible and transparent management of the company control orientated towards a sustainable increase in value are the principles of our actions. We are convinced that good corporate governance supports a sustainable increase of the value of the company and enhances the confidence placed in our company by our shareholders, our business partners, employees and the financial markets.


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CORPORATE GOVERNANCE REPORT

DUAL BOARD SYSTEM In accordance with statutory provisions, adidas AG has a dual board system, which assigns management of the company to the Executive Board and advising and supervision of the Executive Board to the Supervisory Board. These two boards are strictly separated in terms of the membership and the duties and the responsibilities.

COMPOSITION AND WORKING METHODS OF THE SUPERVISORY BOARD Our Supervisory Board consists of six shareholder representatives and six employee representatives in accordance with the German Co-Determination Act. The Supervisory Board currently has two female members. Five members of the Supervisory Board have many years of international experience. The composition of the Supervisory Board is characterized by a high degree of diversity and a comprehensive knowledge of the industry resulting in different professional backgrounds of members.


COMPOSITION AND WORKING METHODS OF THE EXECUTIVE BOARD The Executive Board is responsible for independently managing the company, developing the Group’s strategic orientation, agreeing this with the Supervisory Board and ensuring its implementation. In doing so, it is bound to the company’s interests and obliged to achieve a sustainable increase in company value. The CEO is responsible in particular for leading the entire Executive Boards as well as for management of the Group’s business policy.

In addition, he is in charge of various fields such as Global Sales, Internal Audit and Social& Environmental Affairs as well as Compliance. The business areas Finance, Global Brands and Global Operations each are designated to a different member of the Executive Board. The Rules of Procedure and the Business Allocation Plan of the Executive Board set out the tasks and responsibilities of the Executive Board. These documents specifically stipulate requirements for meetings, resolutions, and the cooperation with the Supervisory Board.

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FIT FOR THE FUTURE

FIT FOR THE FUTURE


PLAY TO WIN The adidas mission is to be the leading sports brand in the world. One major lever to achieve this is the brand’s broad and unique product portfolio spanning from apparel and footwear for professional athletes to premium fashion. It allows adidas to address multiple consumer needs, exploit market opportunities from various angles as well as be less affected by one-dimensional market risks. Adidas is commited to product innovation and its rich heritage differentiates the brand from competitors and provides a solid platform for future growth of the company.

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FIT FOR THE FUTURE » SPORTS PERFORMANCE » RUNNING

SPORTS PERFORMANCE

SILVIA FELT, GERMAN, CATEGORY MANAGER Four figures are my constant companion: 3.86, 180.2, 42.195 and 10. In other words: swimming, cycling and running – all in under ten hours and at the very end, only one sentence said: “You’re an Ironman!”. You have to train very hard in each single discipline if you want to complete the triathlon successfully. This means meticulous time management and discipline are extremely important, because at the end of the day you have to perform at your very best in three different disciplines. I’m committed to both with heart and soul and always give my best. Because sport is my passion.


RUNNING "BECAUSE SPORTS IS MY PASSION." – SILVIA FELT

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FIT FOR THE FUTURE » SPORTS PERFORMANCE » RUNNING


"GO FASTER, HIGHER, FURTHER — SIMPLY BE BETTER." – JESSICA ENNIS

JESSICA ENNIS, BRITISH, HEPTATHLETE You’re full of concentration; you compete by yourself, you compete alone, not against others but against yourself. You must go faster, higher, further – simply be better. The equipment is perfect and you are focused, striving for that perfect performance. It doesn’t matter if you’ve already won six events if you fail in the seventh. Clench your teeth for the last time and excel once again: only another 800m between you and the top spot on the podium.

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FIT FOR THE FUTURE » SPORTS PERFORMANCE » FOOTBALL

SPORTS PERFORMANCE

AUBREY DOLAN, IRISH, SENIOR PROJECT MANAGER My sport: football. My passion: winning. My fascination: No matter what country you’re in, football is a language that is spoken all over the world. My motto: Be better today than you were yesterday. I started playing club football at the age of six, then right from the beginning I had only one dream: to become a professional. I played from sunrise to sunset, from twelve training sessions a week, in four different teams. I’ll never forget what it felt like to win the Football Association

of Ireland Challenge Cup twice as a team captain. I’m still in touch today with my coaches, my team mates and former opponents. Then, in Germany, I was given the opportunity to work as a professional – not on a football pitch, but on the product side. Ever since, I’ve been trying and making sure that the professionals on the field of play are equipped with the very best products.


FOOTBALL "BE BETTER TODAY THAN YOU WERE YESTERDAY."

– AUBREY DOLAN

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FIT FOR THE FUTURE » SPORTS PERFORMANCE » BASKETBALL

"YOU ONLY HAVE ONE OBJECTIVE: TO SCORE AND WIN THE GAME." – DERRICK ROSE

SPORTS PERFORMANCE

DERRICK ROSE, AMERICAN, BASKETBALLER You look at the clock. Just a few seconds left to play. You only have one ojective: to score and win the game. You feel you’re ready. You stand secure; your shoes have been made just for you and even bear your name. You focus on the basket. Your surroundings are a blur. Still three seconds to go, then two then one. You rise up and shoot the ball. And score.


BASKETBALL ADIDAS ANNUAL REPORT 2010

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FIT FOR THE FUTURE » SPORTS STYLE » ORIGINALS

SPORTS STYLE


"BEING ORIGINAL IS MY ATTITUDE AND THE KEY TO MY SUCCESS." – B.O.B.

ORIGINAL B.O.B., AMERICAN, RAPPER, PRODUCER In hip-hop — it's all about image. You have to be authentic, with your own style. You have to know where your roots are, where you come from. Being original is my attitude and the key to my success. I try to unite this in my songs.

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FIT FOR THE FUTURE » SPORTS STYLE » ORIGINALS

"SPORT IS MY GREATEST PASSION BUT FASHION COMES NEXT." – ZINÉDINE ZIDANE

FASHION ZINÉDINE ZIDANE, FRENCH, FOOTBALLER Probably everyone knows that sport is my greatest passion. However few people are aware that fashion comes next. I like to feel comfortable in my own skin and I make this happen in training and through my own style.

GROUP


SPORTS STYLE

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GROUP BUSINESS PERFORMANCE » INCOME STATEMENT

INCOME STATEMENT 30% Western Europe

23% North America

16% Other Asian Markets

2010 NET SALES BY REGION

12% European Markets

11% Latin America

8% Greater China


2010 NET SALES BY SECTION 68% Wholesale

20% Retail

12% Other Businesse

ADIDAS GROUP CURRENCY–NEUTRAL SALES INCREASE 9% IN 2010 In 2010, Group revenues grew 9% on a currency-neutral basis, as a result of sales increases in Wholesale, Retail and Other Businesses. This development exceeded initial Management expectations of a low to mid–single digit Group sales increase. Currency translation effects had a very positive impact on the sales in euro terms.

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GROUP BUSINESS PERFORMANCE » CASH FLOW STATEMENT

CASH FLOW

2012 CAPITAL EXPENDITURE BY SEGMENT

STATEMENT

55% HQ/Consolidation

23% Retail

12% Wholesale

10% Other Businesses


46% Other

23% Own retail

21% IT

10% Retailer support

CASH FLOW REFLECTS IMPROVED GROUP PROFITABILITY In 2010, net cash inflow from operating activities was € 894 million (2009: € 1.198 billion). The decrease in cash provided by operating activities compared to the prior year was primarily due to higher operating working capital requirements, partly offset onto by the improved Group profitability. Net cash outflow from investing activities was € 330 million (2009: € 162 million). This was mainly related to the spending for property, planted and equipment such as investments in the furnishing and fitting of stores in our Retail segment, in new buildings and in IT systems, as well as to the purchase of short-term financial assets. Net cash outflow from financing activities totalled € 238 million (2009: € 512 million).

2012 CAPITAL EXPENDITURE BY TYPE

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ADIDAS GROUP LOCATIONS

adidas Group North America

GROUP LOCATIONS

adidas Group Latin America


adidas Group Headquarters adidas Group Russia

adidas Group Japan

adidas Group China

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CONSOLIDATED FINANCIAL STATEMENT » AUDITOR'S REPORT

AUDITOR'S REPORT

We already have audited the consolidated financial statements prepared by adidas AG, comprising the statement of financial position, income statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and the notes, together with the Group management report for the fiscal year January 1 to December 31, 2010. The preparation of the consolidated financial statements and the Group management report in accordance with IFRS, as adopted by the EU, and the additional requirements of German commercial law pursuant to § 315a (1) German Commercial Code (Handelsgesetzbuch – HGB) is the responsibility of the company’s Executive Board. Our responsibility is to express an opinion on the consolidated financial statements and on the Group management report based on our audit.

Our audit has not led to any reservations. In our opinion, based on the findings of our audit report, the consolidated financial statement complies with IFRS, as adopted by the EU, the additional requirements of the German commercial law pursuant to § 315a (1) HGB and give a true and fair view of the net assets, financial position and profit or loss of the Group in accordance with these requirements. The Group management report is throughout consistent with the consolidated financial statement s and as a whole provides a suitable view of the Group's position and suitably presents the opportunitites and risks of the future development.


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COLOPHON

BOOK DESIGNERS 

SOFTWARE 

» Cezir - Ian Raquion » Theodore Wu » Adobe Indesign CS5.5 » Adobe Illustrator CS5.1 » Adobe Photoshop CS5.1


COLOPHON

TYPOGRAPHY » ITC Avante Garde » Headlines & Subheadings » ITC Frankling Gothic » Body copy

PRINT SHOP

» Copy Central Berkeley

POST PRODUCTION 

» Cezir - Ian Raquion » Theodore Wu

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COLOPHON Âť PHOTO CREDITS

IMAGE SOURCES 09

http://www.adidas-group.com/en/pressroom/assets/images/Executive_Board/Original /HerbertHainer.jpg

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http://www.adidas-group.com/en/pressroom/assets/images/Stores/Original/Beijing.jpg

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http://www.adidas-group.com/en/pressroom/assets/images/Stores/Original/London.jpg

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PHOTO CREDITS

ACCORDING TO IMAGES ON THE PAGE


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http://upload.wikimedia.org/wikipedia/commons/c/c3/2010_12_21_adidas_0045.jpg

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http://counterkicks.com/wp-content/uploads/2011/08/adidas-adizero-feather -lightest-running-shoe-ever-jessica-ennis-2.jpg

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http://1.bp.blogspot.com/-MeE8sQEaT6A/Ttt7A-ZgSHI/AAAAAAAAEvg/GA5ihNcdR50/ s1600/David_Beckham_Adidas_Shooting-Vvallpaper.Net.jpg

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http://i279.photobucket.com/albums/kk159/bullsfan_1/cuts/rose3copy.png

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http://allwhitekicks.com/wp-content/uploads/2010/08/b.o.b_adidas_Originals.jpg

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http://2.bp.blogspot.com/-Vxel-WS48sM/TaYNSKNY-2I/AAAAAAAAA50/N-lXsR9cZ7o/ s1600/2.jpg

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http://www.adidas-group.com/en/pressroom/assets/images/Stores/Original/NYC.jpg

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impossible is nothing.

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Adidas Annual Report  

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