Financial Fact Sheet for the First Nine Months of 2016

November 3, 2016

Table of Content
page

Our Share Highlights

Consolidated Income Statement Highlights

Consolidated Statement of Financial Position and Cash Flow Highlights

Financial Highlights by Segment

Financial Highlights by Brand

Retail at a Glance

6-7

Our Share Highlights

First Quarter
2015

2016
Earnings per share
Basic
Diluted

2)3)

Second Quarter

Third Quarter

2015

2016

2015

2016

YTD

Fourth Quarter
Change

2016

2015

2015

2016

Change

(in EUR)
1.75
1.71

1.17
1.17

1.45
1.42

0.73
0.73

1.93
1.88

1.55
1.55

24%
21%

(0.14)
(0.14)

5.13
5.01

3.45
3.45

49%
46%

200,197,417
206,294,660

204,153,362
204,153,362

200,197,417
206,327,088

201,644,392
201,644,392

200,226,599
206,327,088

200,197,417
200,197,417

0%
3%

200,197,417
200,197,417

200,207,215
206,311,466

201,987,657
201,987,657

(1%)
2%

200,197,417

203,186,309

200,197,417

200,197,417

200,307,750

200,197,417

0%

200,197,417

200,307,750

200,197,417

0%

1)

103.00

73.69

128.45

68.65

154.50

72.01

115%

89.91

154.50

72.01

115%

Market capitalisation 1)4)

20,620

14,973

25,715

13,744

30,948

14,416

115%

18,000

30,948

14,416

115%

15
(7)

28
22

25
(3)

(7)
(9)

20
9

5
(12)

25
11

72
(2)

25
(1)

(7)

(1)

(4)

Average number of shares

Basic
Diluted
Number of shares outstanding
Share price

1)

Historical performance of the adidas

share and important indices (in %)
adidas AG
DAX-30
MSCI World Textiles, Apparel & Luxury
Goods
1)
2)
3)
4)

(1)

At quarter end.
Excluding goodwill impairment.
Includes continuing and discontinued operations.
in millions.

Consolidated Income Statement Highlights

First Quarter
2016
Key Figures ( in millions)
1)
Net sales
Gross profit 1)
Other operating expenses 1)
1)

Second Quarter

2015

2016

2015

Fourth Quarter

Third Quarter
2016

2015

Change

2016

YTD

2015

2016

2015

Change

4,769
2,358
1,924

4,083
2,008
1,700

4,422
2,159
1,935

3,907
1,889
1,720

5,413
2,574
2,058

4,758
2,304
1,845

14%
12%
12%

4,167
1,966
2,024

14,604
7,091
5,916

12,748
6,202
5,265

15%
14%
12%

590

451

510

320

655

589

11%

115

1,754

1,360

29%

Operating profit 1)2)

490

363

414

234

563

505

11%

(7)

1,468

1,101

33%

Income Before Taxes 1)2)

Net Income from continuing operations 1)2)
2)3)
Net Income attributable to shareholders

497
350
351

363
255
239

410
291
291

225
146
146

545
387
386

495
337
311

10%
15%
24%

(9)
(17)
(28)

1,452
1,028
1,027

1,082
737
696

34%
39%
48%

Gross margin 1)

49.4%

49.2 %

48.8%

48.3 %

47.6%

48.4 %

(0.9pp)

47.2 %

48.6%

48.6%

(0.1pp)

Other operating expenses in % of net sales 1)

40.3%

41.6 %

43.8%

44.0 %

38.0%

38.8 %

(0.8pp)

48.6 %

40.5%

41.3%

(0.8pp)

Operating margin 1)2)

10.3%

8.9 %

9.4%

6.0 %

10.4%

10.6 %

(0.2pp)

(0.2%)

10.0%

8.6%

1.4 pp

Effective tax rate 1)2)

29.5%

29.8 %

29.1%

35.1 %

29.1%

31.9 %

(2.8pp)

(86.8%)

29.2%

31.9%

(2.6pp)

7.4%

5.8 %

6.6%

3.7 %

7.1%

6.5 %

0.6 pp

(0.7%)

7.0%

5.5%

1.6 pp

EBITDA

Key Ratios

Net Income attributable to shareholders in % of

net sales 2)3)

1)
2)
3)

Figures reflect continuing operations as a result of the divestiture of the Rockport business.
Excluding goodwill impairment.
Incudes continuing and discontinued operations.

Consolidated Statement of Financial Position and Cash Flow Highlights

March 31
2015

2016
Key Figures ( in millions)
Total assets

June 30
2016

September 30

2015

2016

2015

December 31
Change

2016

2015

13,415

13,415

14,029

12,754

14,255

12,989

10%

13,343

Accounts receivable

2,517

2,456

2,356

2,271

2,715

2,502

9%

2,049

Inventories

2,939

2,539

3,514

2,927

3,203

2,698

19%

3,113

Operating working capital

3,883

3,520

4,013

3,485

4,228

3,724

14%

3,138

809

542

1,028

957

769

903

(15%)

460

5,679

6,271

5,792

5,548

6,126

5,716

7%

5,666

68

53

201

137

361

311

16%

513

(266)

(260)

(75)

(31)

376

314

20%

1,090

20.2%

21.9%

20.4%

21.6%

20.3%

20.7%

(0.4pp)

20.5%

42.3%
0.5
14.2%

46.7%
0.4
8.6%

41.3%
0.6
17.7%

43.5%
0.6
17.2%

43.0%
0.4
12.6%

44.0%
0.6
15.8%

(1.0pp)
n.a.
(3.2pp)

42.5%
0.3
8.1%

Net borrowings
Shareholders' equity
Capital expenditures
Net cash generated from/(used in)
operating activities
Key ratios
Average operating working capital in % of
net sales 1)2)
Equity ratio
Net borrowings/EBITDA 1)3)
Financial leverage
1)

Figures reflect continuing operations as a result of the divestiture of the Rockport business.
Twelve-month trailing average.
3)
EBITDA of last twelve months.
2)

Financial Highlights by Segment ( in millions)

First Quarter
2016

2015

Second Quarter
2016

2015

Third Quarter
2016

2015

Change

Fourth Quarter
Change
(c.n.)

2016

2015

YTD
2016

2015

Change

Change
(c.n.)

Western Europe
Net sales
adidas
Reebok
Gross profit
Gross margin
Operating expenses
Operating expenses in % of net sales
Operating profit
Operating margin

1,414
1,294
121
651
46.1%
338
23.9%
313
22.2%

1,143
1,038
105
550
48.1%
270
23.6%
280
24.5%

1,214
1,133
81
534
44.0%
324
26.7%
210
17.3%

961
894
67
454
47.2%
273
28.5%
180
18.8%

1,557
1,438
119
676
43.4%
342
22.0%
334
21.4%

1,404
1,299
106
667
47.5%
322
22.9%
345
24.6%

11 %
11 %
13 %
1%
(4.1 pp)
6%
(0.9 pp)
(3 %)
(3.2 pp)

15 %
15 %
15 %

1,031
963
68
487
47.2%
383
37.1%
104
10.1%

4,185
3,865
320
1,861
44.5%
1005
24.0%
857
20.5%

3,508
3,230
278
1,671
47.6%
865
24.7%
805
23.0%

19 %
20 %
15 %
11 %
(3.1 pp)
16 %
(0.7 pp)
6%
(2.5 pp)

22 %
22 %
17 %

North America
Net sales
adidas
Reebok
Gross profit
Gross margin
Operating expenses
Operating expenses in % of net sales
Operating profit
Operating margin

728
621
106
274
37.7%
266
36.6%
19
2.7 %

591
470
121
215
36.4%
232
39.3%
(9)
(1.5 %)

788
673
115
305
38.8%
247
31.3%
74
9.4 %

643
520
123
236
36.7%
230
35.8%
17
2.6 %

927
788
139
346
37.3%
290
31.3%
71
7.7 %

776
639
138
289
37.3%
246
31.7%
55
7.0%

19 %
23 %
1%
20 %
0.1 pp
18 %
(0.4 pp)
31 %
0.7 pp

20 %
24 %
2%

744
602
142
268
36.0%
269
36.2%
7
0.9%

2,443
2,082
361
926
37.9%
803
32.9%
165
6.8 %

2,010
1,629
381
740
36.8%
708
35.2%
63
3.1 %

22 %
28 %
(5 %)
25 %
1.1 pp
13 %
(2.4 pp)
164 %
3.6 pp

22 %
29 %
(5 %)

Greater China
Net sales
adidas
Reebok
Gross profit
Gross margin
Operating expenses
Operating expenses in % of net sales
Operating profit
Operating margin

762
746
17
436
57.2%
138
18.1%
298
39.1%

597
583
14
334
55.9%
115
19.3%
218
36.5%

685
669
15
413
60.3%
159
23.2%
254
37.2%

564
552
12
333
59.0%
127
22.5%
206
36.5%

822
803
19
466
56.8%
182
22.2%
284
34.6%

691
675
16
382
55.3%
157
22.7%
225
32.6%

19 %
19 %
15 %
22 %
1.5 pp
16 %
(0.5 pp)
26 %
2.0 pp

25 %
25 %
19 %

617
600
16
363
58.8%
146
23.7%
217
35.1%

2,269
2,218
51
1,316
58.0%
479
21.1%
837
36.9%

1,852
1,811
42
1,048
56.6%
399
21.5%
649
35.1%

22 %
22 %
22 %
25 %
1.4 pp
20 %
(0.4 pp)
29 %
1.8 pp

28 %
28 %
25 %

Russia/CIS
Net sales
adidas
Reebok
Gross profit
Gross margin
Operating expenses
Operating expenses in % of net sales
Operating profit
Operating margin

138
106
32
80
57.7%
66
47.8%
14
9.9%

162
125
37
83
51.3%
81
49.8%
2
1.5%

172
132
39
100
58.2%
68
39.6%
32
18.6%

204
159
45
122
59.8%
91
44.8%
31
15.0%

195
148
47
111
57.0%
79
40.3%
33
16.7%

195
153
42
106
54.1%
84
42.8%
22
11.3%

(0 %)
(3 %)
11 %
5%
2.9 pp
(6 %)
(2.5 pp)
48 %
5.4 pp

7%
4%
19 %

178
132
45
103
58.0%
74
41.4%
30
16.6%

505
386
119
291
57.6%
212
42.1%
78
15.5%

562
437
124
311
55.3%
256
45.5%
55
9.8%

(10 %)
(12 %)
(5 %)
(7 %)
2.2 pp
(17 %)
(3.4 pp)
42 %
5.7 pp

6%
4%
13 %

Financial Highlights by Segment ( in millions)

First Quarter
2016

2015

Second Quarter
2016

2015

Third Quarter
2016

2015

Change

Fourth Quarter
Change
(c.n.)

2016

2015

YTD
2016

2015

Change

Change
(c.n.)

Latin America
Net sales
adidas
Reebok
Gross profit
Gross margin
Operating expenses
Operating expenses in % of net sales
Operating profit
Operating margin

394
350
44
178
45.2%
122
31.1%
56
14.1%

423
361
61
179
42.4%
121
28.7%
58
13.7%

379
330
48
156
41.1%
116
30.6%
40
10.5%

456
387
69
194
42.6%
126
27.5%
69
15.1%

487
424
63
195
40.1%
124
25.5%
71
14.6%

489
416
73
215
44.0%
154
31.5%
61
12.6%

(0 %)
2%
(14 %)
(9 %)
(3.9 pp)
(19 %)
(6.0 pp)
16 %
2.0 pp

16 %
18 %
4%

415
352
63
167
40.2%
120
29.0%
47
11.2%

1,260
1,105
155
529
42.0%
363
28.8%
167
13.2%

1,368
1,164
204
589
43.0%
401
29.3%
188
13.7%

(8 %)
(5 %)
(24 %)
(10 %)
(1.0 pp)
(10 %)
(0.5 pp)
(11 %)
(0.5 pp)

14 %
17 %
(3 %)

Japan
Net sales
adidas
Reebok
Gross profit
Gross margin
Other operating expenses
Other operating expenses in % of net sales
Operating profit
Operating margin

236
212
24
116
49.0%
70
29.4%
50
21.2%

155
143
12
73
47.3%
53
34.2%
24
15.3%

236
209
27
120
51.0%
72
30.8%
51
21.6%

178
163
15
86
48.2%
59
33.0%
30
16.8%

264
238
26
128
48.3%
75
28.4%
56
21.3%

186
164
22
90
48.4%
56
30.3%
37
19.7%

42 %
46 %
17 %
42 %
(0.1 pp)
33 %
(1.9 pp)
54 %
1.6 pp

21 %
24 %
2%

257
226
31
117
45.3%
63
24.5%
57
22.2%

736
660
77
364
49.4%
217
29.5%
157
21.4%

518
470
49
249
48.0%
168
32.4%
90
17.4%

42 %
40 %
56 %
46 %
1.4 pp
29 %
(2.9 pp)
75 %
4.0 pp

28 %
26 %
41 %

MEAA (Middle East, Africa and other Asian

markets)
Net sales
adidas
Reebok
Gross profit
Gross margin
Operating expenses
Operating expenses in % of net sales
Operating profit
Operating margin

701
630
71
356
50.7%
142
20.2%
214
30.6%

635
575
60
335
52.7%
135
21.2%
201
31.6%

572
502
70
283
49.4%
156
27.3%
127
22.2%

536
460
75
270
50.5%
131
24.5%
139
26.0%

794
713
81
396
49.9%
154
19.4%
242
30.5%

674
596
78
345
51.2%
140
20.8%
206
30.5%

18 %
20 %
3%
15 %
(1.3 pp)
10 %
(1.3 pp)
18 %
(0.0 pp)

19 %
21 %
3%

543
459
84
278
51.1%
160
29.4%
119
21.9%

2,067
1,845
222
1,035
50.1%
452
21.9%
584
28.3%

1,845
1,631
214
950
51.5%
406
22.0%
546
29.6%

12 %
13 %
4%
9%
(1.5 pp)
11 %
(0.1 pp)
7%
(1.3 pp)

17 %
18 %
7%

Other Businesses
Net sales
Gross profit
Gross margin
Operating expenses
Operating expenses in % of net sales
Operating profit
Operating margin

396
146
36.9%
149
37.6%
(1)
(0.2 %)

377
141
37.5%
149
39.5%
(5)
(1.4 %)

377
149
39.4%
170
45.0%
(19)
(5.0 %)

365
113
30.8%
155
42.3%
(40)
(10.9 %)

366
138
37.8%
133
36.3%
8
2.2 %

342
118
34.4%
143
41.8%
(23)
(6.7 %)

7%
18 %
3.4 pp
(7 %)
(5.5 pp)
135 %
8.9 pp

7%

383
126
32.8%
144
37.5%
(22)
(5.6 %)

1,139
433
38.0%
452
39.6%
(12)
(1.0 %)

1,084
372
34.3%
447
41.2%
(68)
(6.3 %)

5%
17 %
3.8 pp
1%
(1.5 pp)
83%
5.2 pp

6%

Financial Highlights by Brand ( in millions)

First Quarter
2016
Net Sales by Brand
adidas
Reebok
TaylorMade-adidas Golf
CCM Hockey
1)
Total Group
Gross Margin by Brand
adidas
Reebok
Net Sales by Product Category
Footwear
Apparel
Hardware
Total Group1)
1)

4,036
416
275
38
4,769
47.4 %
38.0 %
2,569
1,770
430
4,769

2015

Second Quarter
2016

2015

Third Quarter
2016

2015

Fourth Quarter

Change

3,352
411
280
39
4,083

3,705
399
248
64
4,422

3,180
408
239
80
3,907

4,640
493
170
103
5,413

4,007
476
159
112
4,758

16%
4%
7%
-8%
14%

47.6 %
37.7 %

46.5 %
36.8 %

47.2 %
38.6 %

45.6%
36.7%

47.2%
36.8%

(1.6 pp)
(0.2 pp)

2,087
1,595
400
4,083

2,291
1,674
456
4,422

1,962
1,530
415
3,907

2,859
2,124
429
5,413

2,355
1,986
417
4,758

21%
7%
3%
14%

Change
(c.n.)
20%
7%
6%
-7%
17%

26%
10%
5%
17%

2016

2015

YTD
2016

2015

Change

12,381
1,308
693
205
14,604

10,540
1,295
678
232
12,748

17 %
1%
2%
(12 %)
15 %

46.5%
37.1%

47.4%
37.7%

(0.9 pp)
(0.5 pp)

7,719
5,568
1,316
14,604

6,405
5,111
1,232
12,748

21 %
9%
7%
15 %

Change
(c.n.)
23 %
7%
3%
(10 %)
20 %

27 %
13 %
10 %
20 %

Rounding differences may arise in percentages and totals.

Retail at a Glance
First Quarter
2016
Number of stores1)
Concept stores
Concession corners
Factory outlets

Second Quarter

2015

Third Quarter

2015

2016

2015

2016

Fourth Quarter
Change
(c.n.)

2016

YTD

2015

2016

2015

2,707
1,693
153
861

2,895
1,725
315
855

2,744
1,720
152
872

2,846
1,695
309
842

2,751
1,728
147
876

2,679
1,674
155
850

2,722
1,698
152
872

2,751
1,728
147
876

2,679
1,674
155
850

1,478
368
861

1,604
436
855

1,499
373
872

1,582
422
842

1,510
365
876

1,466
363
850

1,484
366
872

1,510
365
876

1,466
363
850

54
69
(15)

49
67
(18)

83
46
37

63
112
(49)

72
65
7

80
247
(167)

92
49
43

209
180
29

192
426
(234)

1,034

895

1,177

1,057

1,330

1,104

3,541

3,056

Change
(c.n.)

1)

Stores by brand
adidas
Reebok
Multibrand
Opening
Closing
Net opening/(net closing)
Net sales2)

23 %

22 %

Comp

13%

13 %

adidas Comp
Reebok Comp
1)
At quarter end.

13%
7%

14 %
6%

2)

in millions.