• Group Business Performance 
• Business Performance by Segments 
• Risk and Opportunity Report 
• Subsequent Events 
• Outlook 

Group Business Performance

In 2007, the adidas Group again delivered strong financial performance. Group sales and profitability developed in line with Management’s initial expectations. Currency-neutral sales increased 7 %. Strong sales growth in the adidas segment had the biggest impact on this development. In euro terms, adidas Group revenues grew 2 % to € 10.299 billion in 2007 from € 10.084 billion in 2006. The Group’s gross margin increased 2.8 percentage points to 47.4 % of sales in 2007 (2006: 44.6 %) as a result of improvements in all segments. The Group’s gross profit increased 9 % to reach € 4.882 billion in 2007 versus € 4.495 billion in 2006. The Group’s operating margin grew 0.5 percentage points to 9.2 % from 8.7 % in 2006, due to the higher gross margin which more than offset higher operating expenses as a percentage of sales. The Group’s operating profit increased 8 % to € 949 million in 2007 versus € 881 million in 2006. The Group’s net income attributable to shareholders grew 14 % to € 551 million from € 483 million in 2006. Diluted earnings per share increased 14 % to € 2.57 in 2007 versus € 2.25 in 2006.