• Targets vs. Results 
• Financial Highlights 
• Segmental Information 
• Ten-Year Overview 
• Brand Tree 
• Financial Calendar 2008 
• Major Locations and Promotion Partnerships 

Targets vs. Results

 

2007 TARGETS	2007 RESULTS	2008 TARGETS
Mid-single-digit currency-neutral sales growth	Net sales reach € 10.3 billion; Group currency-neutral sales grow 7 %	High-single-digit currency-neutral sales growth
Bring major new concepts, technology evolutions and revolutions to market	Major 2007 product launches: adidas new technologies in adiSTAR, SuperNova and Response running shoe families, Stella McCartney “Gym / Yoga” collection, TechFit™ apparel Reebok running shoes Trinity KFS II and HATANA, Rbk EDGE Uniform System™ apparel collection Rockport first footwear collection incorporating adidas Torsion ® technology TaylorMade-adidas golf r7 ® SuperQuad drivers, POWERBAND shoe, Clima concept extended to Golf apparel	Bring major new concepts, technology evolutions and revolutions to market
Currency-neutral sales to grow at all brands and in all regions	Currency-neutral sales increase 12 % at adidas, remain stable at Reebok and grow 9 % on a like-for-like basis at TaylorMade-adidas Golf; currency-neutral sales grow in all regions except North America	Currency-neutral sales to grow at all brands and in all regions except North America
Gross margin range 45 – 47 %	Gross margin: 47.4 %	Gross margin range 47.5 % and 48 %
Operating margin around 9 %	Operating margin: 9.2 %	Operating margin to be at least 9.5 %
Reduce operating working capital as a percentage of sales to below 25 %	Operating working capital as a percentage of sales: 25.2 %	Further reduce operating working capital as a percentage of sales
Capital expenditure range € 300 million – € 400 million	Capital expenditure: € 289 million	Capital expenditure range € 300 million – € 400 million
Reduce year-end net borrowings to below € 2 billion	Net borrowings reduced to € 1.766 billion; year-end financial leverage: 58.4 %	Maintain or further reduce net borrowings despite share buyback
Net income growth to approach 15 %	Highest ever net income attributable to shareholders at € 551 million (+ 14 %)	Net income to grow at least 15 %
Further increase shareholder value	adidas AG share increased 36 %, outperforming DAX-30 and MSCI World Textiles, Apparel and Luxury Goods Index; 19% dividend increase proposed; share buyback program initiated in January 2008	Further increase shareholder value