• DEUTSCH

Operating margin improves 2.6 percentage points

Group operating profit increased 76% to € 894 million versus € 508 million in 2009 see  23. As a result, the operating margin of the adidas Group improved 2.6 percentage points to 7.5% in 2010 (2009: 4.9%) see  25. The operating margin improvement was primarily due to the higher gross margin as well as lower other operating expenses as a percentage of sales.

Financial income up 28%

Financial income increased 28% to € 25 million in 2010 from € 19 million in the prior year, mainly due to an increase in interest income as well as positive currency exchange rate effects.

Financial expenses decrease 34%

Financial expenses decreased 34% to € 113 million in 2010 (2009: € 169 million) see  26. The non-recurrence of prior year negative currency exchange rate effects as well as lower interest expenses contributed to the decline.

Income before taxes as a percentage of sales increases 3.3 percentage points

Income before taxes (IBT) for the adidas Group increased 125% to € 806 million from € 358 million in 2009 see 27. IBT as a percentage of sales improved 3.3 percentage points to 6.7% in 2010 from 3.5% in 2009. This was primarily a result of the Group’s operating margin improvement and lower financial expenses.

Net income attributable to share-holders more than doubles

The Group’s net income attributable to shareholders increased to € 567 million in 2010 from € 245 million in 2009 see  29. This represents an increase of 131% versus the prior year level. Higher IBT was the primary reason for this development. The Group’s tax rate decreased 2.0 percentage points to 29.5% in 2010 (2009: 31.5%), mainly due to the non-recurrence of prior year charges related to the write-down of deferred tax assets.

	26 Financial expenses € in millions

	27 Income before taxes € in millions

	28 Income before taxes by quarter € in millions