Own-Retail Activities
Sales directly generated through a store operated by a brand segment within the adidas Group. Own retail includes adidas Concept Stores (Sport Performance and Sport Style) and concession corners as well as factory outlets and e-commerce for the adidas, Reebok and Rockport brands.

PGA Tour
Major US men’s professional golf tour, featuring 49 golf tournaments.

Price-Earnings Ratio (P/E Ratio)
A company’s share price divided by its current or future diluted earnings per share. The P/E ratio is used by investors as a fundamental measure of the attractiveness of a particular security versus other securities or the overall market. It is usually more useful to compare P/E ratios of one company to other companies in a similar industry. In general, a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E.

Price Points
Specific selling prices, normally using “psychological” numbers, for example a product price of USD 9.99 instead of USD 10.

Private Placement
Placement of securities directly to institutional investors, such as banks, mutual funds, insurance companies, pension funds, and foundations.

Product Licensees
Companies that are authorized to use the name of a brand or company to manufacture and distribute products. For adidas, these products primarily include sports watches, sports eyewear, toiletries and perfume, for Reebok fitness equipment and for TaylorMade-adidas Golf bags and gloves.

Promotion Partnerships
Partnerships with events, associations, leagues, clubs and individual athletes. In exchange for the services of promoting the adidas Group, the party is provided with cash and / or promotional material.

Promotional Expenditure
Expenses related to promotion partnerships.

Purchase Price Allocation (PPA)
Stipulated by IFRS regulations. Allocation of the purchase price paid for an acquisition according to the fair values assigned to acquired assets and liabilities.

Record Date
Date by which a shareholder must own a company’s shares in order to be able to register for participation in the Annual General Meeting of such company. According to German law, the record date is twenty-one days before the Annual General Meeting.

Regions
The adidas Group segments its worldwide business into four regions: Europe, Asia, North America and Latin America. Whereas North America and Latin America match the actual geographical classification, Europe also includes Africa and the Middle East, and Asia additionally comprises the Pacific region, Australia and New Zealand.

Retail Investor
Individual who purchases securities for him- / herself, as opposed to an institutional investor. 

Return on Capital Employed (ROCE)
Measure of the returns that a company is realizing from its capital.
ROCE = (income before taxes + financial result + extraordinary income) / (average of shareholders’ equity + minority interests + total net borrowings).

Return on Equity (ROE)
Indicator of company profitability related to the shareholders’ financing.
ROE = net income / shareholders’ equity.

Risk-Free Rate
Rate of return to be expected on a risk-less investment, e.g. federal bonds.

RSS (Really Simple Syndication)
Web feed format for delivering regularly changing web content. The format is used to allow people to stay informed by automatically retrieving the latest content from the website of choice.

Season
At the adidas Group, we typically design and produce two major collections per year – a Fall / Winter and a Spring / Summer collection. Hence, we divide our business into a Fall / Winter and a Spring / Summer season accordingly.

Second Tier Supplier
Also tier-two supplier. Supplier who provides the adidas Group with materials and components to be used in the production of finished products, but does not manufacture products.

Segment
Also Business Segment. Units within a company that have profit and loss responsibility. The adidas Group is currently divided into four major business segments: adidas, Reebok, TaylorMade-adidas Golf and HQ / Consolidation.

Segmental Reporting
Information regarding the financial position and results of operations in individual brands (segments) and regions. This gives an indication of developments in the individual segments and their contribution to the Group’s results.

Sell-Through
An indicator of how fast retailers are selling a particular product to the consumer.

Shareholder Value
A management concept that focuses strategic and operational decision-making on steadily increasing a company’s value for shareholders.

Shop-in-Shop
adidas, Reebok or Rockport area within a larger store. The concept may be operated by the store or the adidas Group depending on individual arrangements. The goal of this distribution method is to give consumers a similar experience to an own-retail environment albeit on a smaller scale.

Signature Collection
Product collection which carries the name and / or visuals relating to a top athlete, e.g. David Beckham football boot, Tracy McGrady basketball shoe, Sidney Crosby hockey stick.