Adidas AG Comments on FY 2009 Guidance

Wednesday, 4 Nov 2009 01:31am EST

Adidas AG announced that it has commented its fiscal year 2009 guidance. The Company expects sales to decline at a low- to mid-
single-digit rate on a currency-neutral basis in fiscal year 2009. Furthermore, adidas AG expects for fiscal year 2009 earnings per
share to decrease and gross margin is forecasted to decline to a level of between 45.0% and 45.5%. Full year diluted earnings per
share are expected to reach a level between EUR 1.15 and EUR 1.30. According to Reuters Estimates, analysts on average are
expecting the Company to report revenue of EUR 10.525 billion, net profit of EUR 253.60 million and earnings per share of EUR 1.26
for the fiscal year 2009.

2009
2010

Last 3 Years Financial Performance

Type Public (AG, FWB: ADS)
Founded 1924 (Registered in 1949)
Founder(s) Adolf Dassler
Headquarters Herzogenaurach ,Germany.
Key people Herbert Hainer (CEO), Erich Stammminger (CEO, Adidas brand).
Indusrty Clothing & consumer goods manufacturing.
Products Footwear, accessories, sportswear, sports equipments.
Revenue € 10.799 billion (2008)
Operating income ↑ € 1.070 billion (2008)
Profit ↑ € 642 million (2008)
Employees 38,980 (2008)

ADIDAS AG is a German sports apparel manufacturer and part of the ADIDAS

Group which consists of REEBOK Sportswear Company, TAYLORMADE-
ADIDAS Golf Company, and ROCKPORT. Besides sports footwear, the company
also produces other products such as bags, shirts and other sports and clothing
related goods. The company is the largest sportswear manufacturer in the world.

The company’s clothing and shoes designs typically feature three parallel bars, and
the same motif is incorporated into Adidas’s current official logo. The company
revenue for 2008 was listed at € 10.7999 billion and the 2007 figure was listed at
€10.299billion, or about US$15.6 billion.

Adidas-Salomon product are sold in over 160 countries in the world .

Industry

The sporting goods industry consists of three segments: Athletic footwear, Apparel
and Equipment. Athletic footwear makes up 33% of the sporting goods industry,
Apparel 50% and Equipment makes up the remaining market share. The three
largest markets for athletic equipment are the US at 50% of the market share,
Western Europe at 25% of the market share and Japan at 10% market share.

Adidas
72% group sales
Sport Performance
(80% of adidas sales)
The guiding principle of the
adidas Sport Performance
Division is to equip all athletes
to achieve their “impossible”.
Adidas Sport Performance
brings its passion for great
products to athletes in all sports
and mainly focuses on four key
categories globally: football,
running, training and basketball.
Sport Style
(20% of adidas sales)
The Sports Style Division is the
home of Originals defined as
authentic sportswear, the
Fashion Group, which is the
future of sportswear, and Style
Essentials, the fresh sport
inspired label made accessible
for style adopting youth.
Together they offer consumers
products from street fashion to
high fashion, all uniquely
inspired and linked to sport.
ADIDAS GROUP
Reebok
20% group sales
Reebok
(80% of Reebok sales)
Inspired by its roots in sports and
women’s fitness, Reebok is
global brand that is committed to
developing innovative products
which will allow Reebok to own
Women’s Fitness, challenge the
Men’s sport category and revive
its Classics heritage.
Reebok – CCM Hockey
(9% of Reebok sales)
Reebok – CCM Hockey is one of
the world’s largest designers,
manufacturers and marketers of
hockey equipment and apparel
with two of the world’s most
recognized hockey brand names:
Reebok Hockey and CCM
Hockey.
Rockport
(11% of Reebok sales)
Building on nearly four decades
of engineering expertise and a
commitment to innovation,
Rockport designs and markets
dress, casual and outdoor
footwear as well as apparel and
accessories that fuse dynamic
technology and modern style.
Taylor Made
8% group sales
Taylor Made
(70% of Taylor Made adidas
golf sales)
Taylor Made is a leader in the
industry and the number one
metal wood supplier. It focuses
on consumers who seek the
most innovative, performance-
enhancing golf equipment
available, including
technologically superior drivers,
fairway woods, irons, putters
and balls.
Adidas Golf
(30% of Taylor Made adidas
golf sales)
Adidas Golf targets active,
serious, athletic-minded golfers
who understand that the right
technologies can dramatically
improve the performance of
golf footwear and apparel.
Ashworth
(Acquired in November 2008)
Ashworth is a leading designer
of men’s and women’s golf-
inspired lifestyle sportswear
distributed internationally in
golf pro shops and reports as
well as upscale department and
specialty stores.
GROUP STRATEGY

Our goal as a group is to lead the sporting goods industry with brands built on a
passion for sports and a sporting lifestyle. In everything we do, we are focused on
strengthening and developing our brands to maximize the Group’s operational and
financial performance and create shareholder value.

1. Performance as core Group value.

2. Leveraging opportunities across our brand portfolio.
3. Leading position in markets worldwide.
4. Customizing distribution.
 Current Position

MARKET MARKET MARKET SALES

INTRODUCTIO GROWTH MATURITY DECLINE
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TOTAL
INDUSTRY
SALES
TOTAL
INDUSTRY
TIME PROFIT

As per the data available Adidas product are in the growth stage. In 2006 the
footwear production was 200 million pairs, where as it increased by 1 million pairs
in 2007 and in 2008 with a surprising increase of 21 million pairs.
www.adidas.com
www.adidas-group.com
http://adidas-group.corporate-publication.com