Financial Highlights

Financial highlights (IFRS)

	2008	2007	Change

Operating highlights (€ in millions)
Net sales	10,799	10,299	4.9%
EBITDA	1,277	1,165	9.7%
Operating profit	1,070	949	12.7%
Net income attributable to shareholders	642	551	16.4%
Key ratios (%)
Gross margin	48.7%	47.4%	1.3 pp
Other operating expenses as a percentage of net sales	40.5%	40.0%	0.6 pp
Operating margin	9.9%	9.2%	0.7 pp
Effective tax rate	28.8%	31.8%	(3.0 pp)
Net income attributable to shareholders as a percentage of net sales	5.9%	5.4%	0.6 pp
Operating working capital as a percentage of net sales	24.5%	25.2%	(0.7 pp)
Equity ratio	35.5%	36.3%	(0.8 pp)
Financial leverage	64.6%	58.4%	6.2 pp
Return on equity	18.9%	18.2%	0.7 pp
Balance sheet and cash flow data (€ in millions)
Total assets	9,533	8,325	14.5%
Inventories	1,995	1,629	22.5%
Receivables and other current assets	2,523	2,048	23.2%
Working capital	1,290	1,522	(15.3%)
Net borrowings	2,189	1,766	24.0%
Shareholders’ equity	3,386	3,023	12.0%
Capital expenditure	380	289	31.6%
Net cash provided by operating activities	497	780	(36.3%)
Per share of common stock (€)
Basic earnings	3.25	2.71	19.9%
Diluted earnings	3.07	2.57	19.6%
Operating cash flow	2.52	3.83	(34.3%)
Dividend	0.50³⁾	0.50	0.0%
Share price at year-end	27.14	51.26	(47.1%)
Other (at year-end)
Number of employees	38,982	31,344	24.4%
Number of shares outstanding	193,515,512	203,628,960	(5.0%)
Average number of shares	197,562,346	203,594,975	(3.0%)

Net sales

€ in millions

Net income attributable to shareholders

€ in millions

Rounding differences may arise in percentages and totals.
1)	Figures reflect continuing operations as a result of the divestiture of the Salomon business segment.
2)	Including Reebok business segment from February 1, 2006 onwards. Including Greg Norman apparel business from February 1, 2006 to November 30, 2006.
3)	Subject to Annual General Meeting approval.