• Interview with the CEO 
• Operational and Sporting Highlights 
• Our Share 
• Supervisory Board Report 
• Supervisory Board 
• Executive Board 
• Corporate Governance Report 
• Compensation Report 
• Products and Campaigns 

Supervisory Board Report

Dear Shareholders, 2007 was another very successful year for the adidas Group. This success represents both a challenge as well as a motivation for us to consistently continue implementing the Group’s strategic goals going forward. In 2008, we expect major sports events and exciting new product launches to drive further expansion of our brands’ market positions around the world. 

Dr. Hans Friderichs
Chairman of the Supervisory Board

SUPERVISORY FUNCTIONS
In the year under review, we, as the Supervisory Board, carefully and regularly monitored the Group’s management. We advised the Executive Board on matters relating to the strategic development of the Group as well as major individual initiatives. In this respect, the Executive Board informed us regularly, extensively and in a timely manner at Supervisory Board meetings as well as by additional oral and written reports. This information covered the Group’s corporate policy as well as all relevant aspects of business planning, including finance, investment and personnel planning. We were also kept up-to-date on the course of business, the operational position of adidas AG and the Group (including the risk situation and risk management), the Group’s financial position and profitability, as well as all major decisions and business transactions. We were involved in all of the Group’s fundamental decisions at an early stage.

We held four Supervisory Board meetings in 2007 and one constituent meeting immediately following our meeting on November 7, 2007. Further, we passed additional resolutions on urgent matters between our meetings. All Supervisory Board members attended more than half of the Supervisory Board meetings. The external auditor KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Frankfurt am Main (KPMG) attended all meetings. In addition, Henri Filho (Chairman of the Supervisory Board until November 7, 2007) and Dr. Hans Friderichs (formerly Deputy Chairman of the Supervisory Board and now Chairman of the Supervisory Board, since November 7, 2007) also maintained regular contact with the Executive Board beyond the Supervisory Board meetings. We kept ourselves thoroughly informed regarding the current business situation, major business transactions and upcoming decisions.