Q2 Q1 Q3 - cache.pressmailing.net€¦ · adidas Group FiRst HalF YeaR RepoRt 2010 2 N°-FiRst HalF YeaR 2010 Results at a Glance 01 € IN MIllIoNs First half year 2010 First half

First Half Year Report 2010adidas Group

EvEry Product tElls a story

Q1 Q3Q2

version: Wed, 10-08-04, 09:07 aM Korr. Korr.II page 2 - ad_10_Q2_En_rzcs4.indd

adidas Group FiRst HalF YeaR RepoRt 2010 2

N°-01

FiRst HalF YeaR 2010 Results at a Glance€ IN MIllIoNs

First half year 2010

First half year 2009 change

second quarter 2010

second quarter 2009 change

WholesaleNet sales 3,826 3,480 10.0% 1,928 1,605 20.1%Gross profit 1,608 1,434 12.2% 790 636 24.3%Gross margin 42.0% 41.2% 0.8pp 41.0% 39.6% 1.4ppsegmental operating profit 1,233 1,104 11.7% 607 490 23.8%segmental operating margin 32.2% 31.7% 0.5pp 31.5% 30.5% 0.9pp

RetailNet sales 1,061 886 19.8% 602 486 23.8%Gross profit 659 513 28.5% 392 295 32.7%Gross margin 62.1% 57.9% 4.2pp 65.1% 60.8% 4.4ppsegmental operating profit 199 97 105.1% 147 82 78.4%segmental operating margin 18.7% 10.9% 7.8pp 24.4% 17.0% 7.5pp

other BusinessesNet sales 703 657 6.9% 387 362 6.9%Gross profit 313 255 22.9% 171 139 23.3%Gross margin 44.6% 38.8% 5.8pp 44.2% 38.3% 5.9ppsegmental operating profit 197 128 53.0% 105 85 22.9%segmental operating margin 28.0% 19.5% 8.4pp 27.1% 23.5% 3.5pp

GroupNet sales 5,590 5,034 11.0% 2,917 2,457 18.7%Gross profit 2,727 2,269 20.2% 1,427 1,105 29.2%Gross margin 48.8% 45.1% 3.7pp 48.9% 45.0% 4.0ppoperating profit 454 129 251.2% 195 72 172.3%operating margin 8.1% 2.6% 5.6pp 6.7% 2.9% 3.8pp

sales by Brandadidas 4,101 3,667 11.8% 2,103 1,750 20.2%reebok 811 724 12.1% 435 350 24.4%taylorMade-adidas Golf 492 449 9.6% 269 255 5.6%rockport 114 115 (1.0%) 58 55 5.4%reebok-ccM Hockey 73 68 6.6% 52 44 18.1%

rounding differences may arise in percentages and totals.

taBle oF contents

Financial Highlights ................................................................... 3

operational and sporting Highlights ......................................... 4

Interview with the cEo ............................................................... 5

our share ................................................................................. 10

INtErIM GrouP MaNaGEMENt rEPort

Group Business Performance ................................................. 12

Economic and sector development ..................................... 12

Income statement ................................................................ 13

Balance sheet and cash Flow statement ............................ 17

Business Performance Wholesale .......................................... 19

Business Performance retail .................................................. 22

Business Performance other Businesses .............................. 25

subsequent Events and outlook .............................................. 28

INtErIM coNsolIdatEd FINaNcIal statEMENts (IFrs)

responsibility statement ......................................................... 32

consolidated Balance sheet .................................................... 33

consolidated Income statement ............................................. 34

consolidated statement of comprehensive Income and Expense ......................................................................... 35

consolidated statement of changes in Equity ........................ 36

consolidated statement of cash Flows ................................... 37

Notes to Interim consolidated Financial statements ............. 38

Executive Board and supervisory Board ................................. 41

Financial calendar 2010/2011 ................................................. 42

Publishing details/contact ...................................................... 43


adidas Group FiRst HalF YeaR RepoRt 2010 3to ouR sHaReHoldeRs Financial Highlights

N°-02

Financial HiGHliGHts (iFRs)



second quarter 2010

second quarter 2009 change

operating Highlights (€ in millions)

Net sales 5,590 5,034 11.0% 2,917 2,457 18.7%operating profit 454 129 251.2% 195 72 172.3%Net income attributable to shareholders 295 13 2,098.7% 126 9 1,375.1%

Key RatiosGross margin 48.8% 45.1% 3.7pp 48.9% 45.0% 4.0ppother operating expenses as a percentage of net sales 42.8% 44.3% (1.6pp) 43.9% 43.9% 0.0ppoperating margin 8.1% 2.6% 5.6pp 6.7% 2.9% 3.8ppEffective tax rate 29.5% 66.8% (37.2pp) 28.1% 71.3% (43.2pp)Net income attributable to shareholders as a percentage of net sales 5.3% 0.3% 5.0pp 4.3% 0.3% 4.0ppoperating working capital as a percentage of net sales 1) 21.7% 26.2% (4.5pp) 21.7% 26.2% (4.5pp)Equity ratio 44.6% 33.9% 10.7pp 44.6% 33.9% 10.7ppNet borrowings/EBItda 1.0 2.9Financial leverage 23.1% 85.7% (62.6pp) 23.1% 85.7% (62.6pp) Balance sheet and cash Flow data (€ in millions)

total assets 10,608 9,407 12.8% 10,608 9,407 12.8%Inventories 2,049 2,041 0.4% 2,049 2,041 0.4%receivables and other current assets 2,829 2,434 16.2% 2,829 2,434 16.2%Working capital 2,038 1,685 20.9% 2,038 1,685 20.9%Net borrowings 1,090 2,732 (60.1%) 1,090 2,732 (60.1%)shareholders’ equity 4,729 3,189 48.3% 4,729 3,189 48.3%capital expenditure 80 116 (30.8%) 53 60 (12.5%)Net cash used in operating activities (73) (366) (80.0%)

per share of common stock (€)

Basic earnings 1.41 0.07 1,933.7% 0.60 0.04 1,264.4%diluted earnings 1.41 0.10 1,367.9% 0.60 0.06 959.6%operating cash flow (0.35) (1.89) (81.5%)share price at end of period 39.88 27.10 68.0% 39.88 27.10 68.0%

other (at end of period)

Number of employees 40,791 38,935 4.8% 40,791 38,935 4.8%Number of shares outstanding 209,216,186 193,515,512 8.1% 209,216,186 193,515,512 8.1%average number of shares 209,216,186 193,515,512 8.1% 209,216,186 193,515,512 8.1% rounding differences may arise in percentages and totals.

all Group figures comprise the brand segments and HQ/consolidation.1) twelve-month trailing average.

N°-03

FiRst HalF YeaR net sales € IN MIllIoNs

20062007200820092010

4,8874,938

5,1425,034

5,590

N°-04

FiRst HalF YeaR net income attRiButaBle to sHaReHoldeRs € IN MIllIoNs

20062007200820092010

226232

28613

295


adidas Group FiRst HalF YeaR RepoRt 2010 4to ouR sHaReHoldeRs operational and sporting Highlights

operational and sporting Highlights

second QuaRteR 2010

04.05. taylorMade-adidas Golf’s Penta tP golf ball earns a Gold rating in Golf digest magazine’s annual golf ball “hot list”.11.05. adidas football superstars lionel Messi and david villa present the F50 adiZero™. Weighing an impressive 165 grams (at uK size 8.5), this is the lightest adidas football boot ever. 13.05. adidas and volkswagen join forces and unveil the special edition Golf GtI adidas.17.05. adidas and disney consumer Products present the new fall/winter 2010 kids and infant collection from adidas, coinciding with the release of “disney-Pixar’s toy story 3” picture 03.19.05. taylorMade-adidas Golf introduces the r9™ superdeep tP, a pure player’s driver for tour pros and highly skilled players

picture 04.26.05. reebok launches the campaign “Get stronger With Every step”, supporting the market introduction of its men’s toning shoe range in the us picture 05.

09.04. supermodel Helena christensen launches reebok & cirque du soleil’s JuKarI Fit to Flex™ workout in london picture 01.15.04. taylorMade-adidas Golf ranks as the No. 1 driver brand at the Masters for the 10th consecutive year.20.04. adidas unveils the special match ball for the final of the 2010 FIFa World cup south africa™. Jo’BulaNI is a unique gold-coloured version of the JaBulaNI picture 02.27.04. adidas originals and Burton snowboards announce a limited adidas originals x Burton lifestyle collection.

11.06. the 2010 FIFa World cup™ kicks off in south africa. adidas is the official sponsor, supplier and licensee of the event. In the 2010 World cup, adidas equips more than 200 players and 12 teams

picture 06.15.06. the German Bundesliga gets its own official adidas match ball named “torfabrik”, which will be used in the upcoming season.22.06. adidas micoach, the personal coaching and training system, wins a prestigious stevie award in the 2010 american Business awards.23.06. reebok announces its partnership with basketball phenomenon and #1 NBa draft pick John Wall.

01

02

03

04 06

05


adidas Group FiRst HalF YeaR RepoRt 2010 5to ouR sHaReHoldeRs Interview with the cEo

interview with the ceothe adidas Group had an outstanding first half in 2010. driven by the FiFa World cup™ and the resurgence of the Reebok

brand in north america, the Group achieved record first half sales and diluted earnings per share. although the speed and

rate of economic recovery continues to be fragile, underlying business fundamentals for the Group are strong, prompting

an upward revision to its full year financial outlook.

in the following interview, Herbert Hainer, adidas Group ceo, reviews the first half of 2010 and discusses the Group’s

strategic and financial outlook.

HeRBeRt HaineR

We had a fantastic first half with all of our segments and brands making big strides. We took full advantage of major sporting events such as the World cup and our brands are right on the consumer pulse with strong product concepts in toning, lightweight technologies and lifestyle. We achieved record sales of € 5.6 billion, an increase of 11% or 7% currency-neutral compared to the prior year. More importantly, our profitability improved substantially. Gross margin is up 3.7 percentage points year-to-date to 48.8%, driven by lower input costs, a larger share of higher-margin retail sales and positive currency effects. the latter mainly relates to the russian rouble which you may remember was a significant headwind last year. due to our marketing initiatives around the 2010 FIFa World cup™ as well as for reebok, we saw a 7% increase in our other operating expenses versus the first half of 2009. Nevertheless, through the leverage we achieved from our strong top-line performance, other operating expenses as a percentage of sales declined 1.6 percentage points. at the same time, we also benefited from a much lower debt level compared to 2009, which helped reduce our net financial income and expenses by 62%. and the bottom line is that our first half net income attributable to shareholders jumped to € 295 million, which represents the highest ever first half net income in the Group’s history. In addition, our balance sheet also strengthened significantly compared to the prior year. operating working capital as a percentage of sales stands at its lowest ever level of 21.7%. our equity ratio improved 10.7 percentage points to 44.6%, the second highest level in the past 10 years. and our net debt is 60% lower compared to the prior year at just over € 1 billion. this strong performance is a credit to the hard work of 2009 to build a healthier and more focused organisation and provides us with plenty of firepower and flexibility to accelerate our marketing offensives in the coming quarters.

Question

Herbert, your Group excelled in the first half. What were the most important highlights from a financial perspective?



HeRBeRt HaineR

the 2010 FIFa World cup™ will be remembered as a celebration of football – colourful, passionate and full of energy, a clear reflection of its african hosts. Before the first whistle was blown we knew that this World cup was going to be a powerful event for our Group, and it turned out even bigger and better than we had expected. on the pitch, our sponsored federations and players were outstanding. Four adidas teams competed in the quarter-finals, two in the semi-finals and in the end the three-striped spanish team deservedly secured their first title. over 200 players wore adidas boots and the F50 adiZero™ was by far the top scoring boot with a total of 41 out of 145 goals. adidas players swept the individual awards, as voted by media representatives, with diego Forlán (uruguay) winning the adidas Golden Ball (best player), thomas Mueller (Germany) claimed the adidas Golden Boot (top scorer) and the best young player award, while reebok’s Iker casillas (spain) won the adidas Golden Glove for best goalkeeper. off the pitch we also had a powerful performance. according to NM Incite and sport+Markt, adidas generated the most online buzz and had the strongest visibility of any brand associated with the event.the impact on our business has been significant. With more than 6.5 million replica jerseys sold, the number of federation jerseys sold has more than doubled compared to 2006 (3 million). In 2010, adidas will also sell more footballs than ever before. More than 13 million of the 20 million footballs we will sell this year feature the design of the JaBulaNI, the official Match Ball of the 2010 FIFa World cup™. In total, football sales in the first half were up almost 50% currency-neutral compared to the prior year, and over 60% in the second quarter. therefore, we are expecting record sales of at least € 1.5 billion in football for 2010. this represents an increase of more than 15% compared to 2008, and an increase of 25% compared to the year of the last FIFa World cup™ in 2006. No matter how you look at it, adidas has once again shown its ability to drive commercial success from large sporting events and there can be no argument who is and continues to be the undisputed No. 1 football brand.

Question

adidas enjoyed fantastic presence and visibility at the 2010 FIFa World cup™. can you share with us your view on the tournament and the impact on your business?



HeRBeRt HaineR

yes, our achievements with reebok in the second quarter underscore my confidence that the brand has finally been reenergised. currency-neutral sales are up 16% in the second quarter and 9% in the first half. and importantly, gross margins are also improving, up almost 500 basis points over the prior year in the first six months. reebok’s momentum in North america has been and will continue to be a key driver of this performance in the near term. revenues in this region significantly accelerated, jumping 30% currency-neutral in the second quarter compared to 6% in the first quarter. our toning platform, which now extends from walking to categories such as running and training, as well as men’s, and the highly successful debut of Zigtech™ have really inspired and brought consumers back to reebok. In addition to these positive developments, we are also seeing some healthy growth in other parts of our product offering, in particular in technical running, where our latest generation Premier and verona collections have shown meaningful improvements. With good visibility on orders and positive consumer feedback, I see no reason why these trends should not continue. to support our growth plan, we will be investing significantly more in marketing between now and year-end for the important back-to-school and holiday periods. toning will take centre stage in our activities as we continue to expand our reach in the us and internationally. another important highlight will be the introduction of the Zigtech™ in basketball where we plan a high-profile campaign centred on this year’s number one NBa draft John Wall. as a result, we now expect to sell up to eleven million pairs of toning product and over two million pairs of Zigtech™ this year.

Question

recent market share data suggests that reebok’s growth rates partic-ularly in North america have signif-icantly accelerated in the second quarter. can you confirm this and do you expect this trend to continue?

HeRBeRt HaineR

absolutely. While major events are an important stimulus, let me remind you that adidas is the broadest and most wide-reaching brand in our industry. From a product and innovation perspective, the brand is stronger than ever and we will definitely capitalise on this in the weeks and months ahead. While the World cup may be over, the new football season is just starting. and unlike many of our competitors, we have kept back additional marketing campaigns and initiatives to keep momentum going in what will be an exciting season. Here, we will intensify our F50 adiZero™ marketing efforts in many markets for back-to-school and we also have strong initiatives planned for the uEFa champions league and the build-up to next year’s 2011 FIFa Women’s World cup™ in Germany. In other performance categories we also have a lot of new initiatives to excite consumers. this week, micoach launched the micoach mobile application for smartphones. this multi-sport application will be supported by a strong tv and online campaign including iconic athletes such as reggie Bush, Jessica Ennis, andy Murray, derrick rose and david villa. In training footwear, we are introducing the FluId traINEr, which through its soft technology and full-length cushioning system offers the ultimate in full foot flexibility and freedom of motion. We also expect continued momentum in our sport style division, which is up 19% year-to-date. this will be driven by exciting new product launches such as the adidas originals MEGa collection which incorporates iconic technologies such as torsion and softcell into street style.

Question

Now that the World cup is over, do you still see growth for the adidas brand in the coming quarters?



HeRBeRt HaineR

china has been a difficult market over the past 18 months, suffering from high inventory levels and intense competition. However, I believe the steps we have taken during the past few months will allow adidas to turn the corner in china and grow in the second half of this year. From a branding perspective, there is no doubt that the adidas brand is one of the most sought-after international brands among chinese consumers. our own-retail stores which carry our most current product offering are clear evidence of this, with comparable store sales up double-digit in the first half of this year. Following the inventory reduction measures we have implemented since mid 2009, we have been able to reduce the amount of inventory in the market consid-erably. With our franchise partners enjoying a better product mix, we expect to see their store sales increase in the coming months. as we continue to fine-tune our marketing and merchan-dising approach as well as begin the implementation of a new long-term strategy for space expansion, I am confident we will see sales momentum building in the coming quarters. these measures will also ensure we fully exploit the tremendous potential the chinese market offers our Group for the long term.

HeRBeRt HaineR

yes, we are also facing these industry-wide headwinds as we move into next year. raw material, labour and transportation costs are all going up. and the us dollar appreciation is, generally speaking, not trending in our favour. although we do not have full visibility yet on what the final impact will be, we are working hard to mitigate these negative impacts. and as no stranger to these types of challenges, we have several mechanisms and instruments at our disposal. For example, our Global operations function is constantly working on optimising our product creation, manufacturing and distribution processes to bring our products to market more cost-efficiently. on the currency front, although the dollar is signifi-cantly stronger compared to the prior year, due to our 12- to 24-month hedging policy, we already have a significant portion of our hedging completed for 2011. although our average hedging rates are likely to be lower than 2010, they are not as extreme as current spot rates. While these toolkits provide us some relief, they may not be enough to fully offset the negative impacts. therefore the final measure we have at our disposal is ultimately our pricing strategy. Here there are operational and economic factors at play. For example, reebok’s gross margin still has good growth potential due to the introduction of higher-margin products such as Easytone™ and Zigtech™. the bigger question mark at this stage, however, is whether the economic environment will be strong enough to bear broader price increases. Given the recovery in consumer sentiment seen so far this year, as well as cleaner inventory levels at retail, we probably have more flexibility in pricing than we had in 2009. But, I still believe an air of caution is warranted as the global economy is still very fragile.

Question

all regions for the Group increased at a double-digit rate in the second quarter with the exception of china. can you give us an update on your clean-up activities, and when do you expect to see growth again in this market?

Question

your main competitors are pointing to upcoming gross margin pressures due to rising raw material and labour costs. Is your Group facing similar obstacles and if so, what steps will you be taking to tackle these challenges?



HeRBeRt HaineR

In March, I told you that looking around the market I did not see any other company with a product and concept pipeline as compelling, original or technologically advanced as ours. and as the economy recovers, even if the pace is slow, it is imperative to be fast out of the blocks. Everything we are doing this year is to ensure we stay at the absolute forefront of the market. consumers are always craving for newness, be it innovation or style, and retailers are always looking for a new product edge to drive sales productivity. our financial performance so far this year is living proof of the merits of this strategy. therefore, not only will we continue, we will accelerate our efforts on several fronts in the second half of this year. the profit-ability of the first half and the financial strength of our Group provide us with plenty of firepower. Whether it’s toning, lightweight technologies or lifestyle, our brands are right on the consumer pulse. and we will continue to prominently tell these stories through various media channels in the important back-to-school and holiday seasons. We are also striving to become a better and more efficient retailer. Here we will continue to invest in processes and people as well as open new and remodel existing stores in the second half. and, closely related, we are also now starting to move forward with a holistic ecommerce strategy. In the summer we have established a global leadership team for the Group’s ecommerce business to create a stronger competency in this area and leverage best practices for the benefit of all Group brands. I will give you more details on this during our Investor day in November. But let me assure you, the energy we create in the market this year through our various investment projects will be an important catalyst in propelling our Group to new heights in the years to come.

Question

you have outlined that 2010 is a year of brand investment for the adidas Group. Why have you chosen this year to accelerate your level of spending and what are the key initiatives you will be focusing on?

Herbert, thank you for this interview.

HeRBeRt HaineR

For the full year, I expect sales to increase at a mid-single-digit rate currency-neutral and to exceed the € 11 billion mark for the first time ever in the Group’s history. this performance will be driven by the Wholesale and retail segments which we expect to grow at a mid-single-digit and low-double-digit rate, respectively. Gross margin is now forecasted to be near the top end of the range we outlined in May, approaching 47.5%. and due to the strong operational performance in the first half we expect operating margin to be around 7.5% which compares to our earlier expectations of around 7%. this translates into earnings per share of € 2.50 to € 2.62, which represents an almost 20% increase compared to the range of € 2.05 to € 2.30 we had expected under our May guidance.

Question

How does the rest of 2010 look for the adidas Group?


adidas Group FiRst HalF YeaR RepoRt 2010 10to ouR sHaReHoldeRs our share

our sharein the second quarter of 2010, international stock markets declined markedly, reversing the positive trend from the first quarter.

this was mainly due to increasing fears regarding a potential slowdown of the global economic recovery and the sovereign debt

crisis in the euro area’s peripheral countries. accordingly, the daX-30 declined 3% and the dow Jones decreased 10% compared to

the end of march. However, the adidas aG share outperformed international indices over the three-month period and rose by 1%.

N°-05

tHe adidas aG sHaRe

Number of shares outstanding First half average 209,216,186 at June 30 1) 209,216,186type of share No-par-value shareFree float 100%Initial Public offering November 17, 1995share split June 6, 2006 (in a ratio of 1: 4)stock exchange all German stock exchangesstock registration number (IsIN) dE0005003404stock symbol ads, adsG.dEImportant indices daX-30

MscI World textiles, apparel & luxury Goodsdeutsche Börse Prime consumerdow Jones stoXXdow Jones Euro stoXXdow Jones sustainabilityFtsE4Good EuropeEthibel Index Excellence EuropeasPI Eurozone IndexEcPI Ethical Index EMu

1) all shares carry full dividend rights.

Global stock markets decline in the second quarterInternational stock markets declined in the second quarter of 2010, offsetting the positive development of the first quarter. While better than expected quarterly earnings announcements and outlook upgrades supported investor sentiment in april, intensifying concerns regarding significant budget deficits in several euro area countries were a negative catalyst for equity markets throughout the quarter. In addition, signals indicating a slowdown of the economic recovery intensified. Examples included record- low new home sales and declining consumer confidence in the us as well as a tighter monetary policy in china. as a consequence, risk aversion of investors increased significantly, highlighted by the gold price reaching new record highs. during the three-month period, the daX-30 decreased 1% and closed the second quarter at 5,966 points. the MscI World textiles, apparel & luxury Goods Index, which comprises the Group’s main competitors, declined 8% during the same period. the adidas aG share, however, gained 1% compared to the end of March 2010.

adidas aG share price outperforms peersIn april, in contrast to the general market environment, the adidas aG share price gained strongly and outper-formed its peers and the general market. the improvement accelerated towards the end of the month following the preliminary announcement of better than expected results for the first quarter and an improved outlook for the full year 2010. after having traded sideways at the beginning of the month, in mid-May analyst upgrades, positive feedback from a reebok investor event in london as well as increased sales expectations in the football category for 2010 supported the favourable momentum of our share. towards the end of the period, general market weakness as well as comments regarding future sourcing cost increases and negative currency effects from one of our main competitors weighed on our share price performance. Nevertheless, the adidas aG share finished the three-month period at € 39.88, representing an increase of 1% compared to the end of March 2010, thereby outperforming the daX-30 and the MscI World textiles, apparel & luxury Goods Index, which declined 1% and 8% respectively.

since the end of 2009, the adidas aG share has increased 6%, whereas both the daX-30 and the MscI World textiles, apparel & luxury Goods Index remained flat over the same period.

number of adRs increasesthe number of level 1 adrs (american depository receipts) increased during the three-month period compared to the end of the first quarter of 2010. at June 30, 2010, 6.5 million adrs were outstanding (March 31, 2010: 5.5 million). this represents a substantial increase compared to June 30, 2009, when 4.8 million adrs were outstanding. the level 1 adr closed the quarter at us$ 24.15, reflecting a 10% decrease compared to the end of March 2010. the decrease, which compares to a price increase of our ordinary share, was due to the continued appreciation of the us dollar during the second quarter.

N°-06

HistoRical peRFoRmance oF adidas aG sHaRe 1) aNd IMPortaNt INdIcEs at JuNE 30, 2010 IN %

ytd 1 year 3 years 5 years since IPo

adidas aG 6 47 (15) 15 312daX-30 0 24 (25) 30 172MscI World textiles, apparel & luxury Goods 0 37 (13) 34 139

1) source: Bloomberg.


adidas Group FiRst HalF YeaR RepoRt 2010 11to ouR sHaReHoldeRs our share

dividend of € 0.35 per share paidat the annual General Meeting on May 6, 2010, shareholders approved the adidas aG Executive and supervisory Boards’ recommendation to pay a dividend of € 0.35 per share for the financial year 2009 (2008: € 0.50). the dividend was paid on May 7, 2010. Based on the number of shares outstanding at the time of the annual General Meeting, this represents a dividend payout of € 73 million (2008: € 97 million) and an increase of our payout ratio to 30% (2008: 15%). Going forward, we intend to pay out between 20% and 40% of net income attributable to shareholders.

changes in shareholder baseIn the second quarter of 2010, the Group received one voting rights notification according to article 21, section 1 of the German securities trading act (Wertpapierhandelsgesetz – WpHG)

see 07. this voting rights notification and those received thereafter can be viewed on our corporate website www.

adidas-Group.com/voting_rights_notifications.

directors’ dealings reported on corporate websitethe purchase or sale of adidas aG shares (IsIN dE0005003404) or related financial instruments, as defined by article 15a WpHG, conducted by members of our Executive or supervisory Boards, by key executives or by any person in close relationship with these persons, is reported on our website www.adidas-

Group.com/directors_dealings. In the second quarter of 2010, adidas aG received notification that Herbert Hainer, adidas Group cEo, had purchased 2,570 shares on May 25, 2010.

N°-07

sHaReHoldeR RiGHts notiFications ReceiVed in Q2 2010

date of notification

Notifying party

threshold crossed

voting rights of total shares outstanding

date of change

Jun. 24, 2010 Euro Pacific Growth Fund >3% 6,178,394 (2.95%)

Jun. 21, 2010

N°-08

sHaRe pRice deVelopment in 2010 1)

dec. 31, 2009 June 30, 2010

120

110

100

90

80

— adidas aG — daX-30 — MscI World textiles, apparel & luxury Goods Index

1) Index: december 31, 2009 = 100.


adidas Group FiRst HalF YeaR RepoRt 2010 12inteRim GRoup manaGement RepoRt Group Business Performance Economic and sector development

Group Business performancein the first half of 2010, the adidas Group results improved significantly compared to the prior year period. currency-neutral

Group sales increased 7% as a result of growth in the Wholesale and Retail segments as well as in other Businesses. in euro

terms, adidas Group revenues grew 11% to € 5.590 billion from € 5.034 billion in 2009. the Group’s gross margin increased

3.7 percentage points to 48.8% (2009: 45.1%), supported by lower input costs, less clearance sales and a larger share of higher-

margin Retail sales. consequently, the Group’s gross profit increased 20% to € 2.727 billion in the first half of 2010 versus

€ 2.269 billion in 2009. the Group’s operating margin increased 5.6 percentage points to 8.1% from 2.6% in 2009, primarily due

to the higher gross margin as well as lower other operating expenses as a percentage of sales. in absolute terms, the Group’s

operating profit grew to € 454 million in the first half of 2010 versus € 129 million in 2009. the Group’s net income attributable

to shareholders increased to € 295 million from € 13 million in 2009. diluted earnings per share grew to € 1.41 in the first half

of 2010 versus € 0.10 in 2009.

economic and sector development

positive global economic growth continues in second quarterIn the second quarter of 2010, growth of the global economy continued at a similar pace as in the first quarter. Increases in industrial production and global trade as well as stabilising unemployment and private consumption levels contributed to this development. In Western Europe, industrial output as well as strong increases in exports supported by a weak euro offset negative effects from sovereign debt concerns and relatively high unemployment levels.

the recovery in European emerging markets continued to gather pace in the second quarter with rising exports and improving domestic demand in some of the region’s major markets such as russia and turkey. despite high levels of unemployment, growth in the usa during the second quarter maintained a similar pace to the first three months of the year with the inventory replenishment cycle and fiscal stimulus remaining key drivers. In china, while economic expansion remained robust, the economy started to feel the first effects of tighter monetary policy implemented to help stop the economy from overheating. Nevertheless, domestic demand growth remains strong and rising wage levels are helping drive increases in consumer confidence and spending. other asian markets benefited from strong GdP growth not just from export activity but also due to an increase in regional trade.

In Japan, the economy is slowly recover- ing, driven by exports, particularly to other asian countries. domestic consumption has also picked up but spending has been mainly focused on durable goods, supported by government subsidies. In latin america, most countries posted strong GdP growth during the quarter as falling unemployment levels helped drive public and private spending. Increasing commodity prices also contributed to overall growth in the region.

N°-09

QuaRteRlY consumeR conFidence deVelopment By rEGIoN

Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

usa 1) 49.3 53.4 53.6 52.3 54.3Euro Zone 2) (25) (19) (16) (17) (17)Japan 3) 38.1 40.7 37.9 41.0 43.6

1) source: conference Board.2) source: European commission.3) source: Economic and social research Institute, Government of Japan.

N°- 10

eXcHanGe Rate deVelopment 1)

€ 1 EQuals

average rate

2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

average rate

2010 2)

usd 1.3932 1.4643 1.4406 1.3479 1.2271 1.3394GBP 0.8912 0.9093 0.8881 0.8898 0.8175 0.8703JPy 130.23 131.07 133.16 125.93 108.79 121.57

1) spot rates at quarter-end.2) average rate for the first half of 2010.


adidas Group FiRst HalF YeaR RepoRt 2010 13inteRim GRoup manaGement RepoRt Group Business Performance Income statement

N°- 11

FiRst HalF YeaR net sales € IN MIllIoNs

20062007200820092010

4,8874,938

5,1425,034

5,590

N°- 12

FiRst HalF YeaR net sales BY seGment 1)

13% other Businesses

19% retail

68% Wholesale

1) HQ/consolidation accounts for less than 1% of sales.

2010 FiFa World cup™ promotes positive trends in global sporting goods industrythe second quarter of 2010 saw the global sporting industry performing strongly. the 2010 FIFa Football World cup™ helped drive positive sales developments across most of the industry. toning was also identified as a key contributor to sporting goods revenues during the quarter. Western Europe, with its large number of national teams competing in this year’s FIFa World cup™, witnessed record sales in the football category. Good weather in the region also helped the running and outdoor categories. In European emerging markets, the sporting goods sector remained challenged with low consumer confidence as a result of high unemployment levels. In North america, the sporting goods industry continued to grow during the quarter, with strong momentum from the toning category. In china, the sporting goods industry saw further retail expansion as well as improving consumption trends compared to the prior year. other asian markets grew strongly with the exception of Japan, where consumption continues to lag behind the rest of the region due to subdued spending on discretionary products. latin america’s sporting goods industry continued to outperform the overall industry as high levels of consumer confidence and positive stimulus from the 2010 FIFa World cup™ spurred demand.

income statement

segmental reporting comparatives updated Following minor changes to the adidas Group’s organisational structure in the first quarter of 2010, the assignment of certain functions has been changed compared to the Group’s prior year annual financial statements. this development has a limited effect on the Group segmental structure. to ensure full comparability of Group financial results in 2010, the Group has decided to adjust the segmental reporting for 2009 retrospectively. these adjustments have no effect on total Group financial results. details of the adjustments are available in the notes see note 7, p. 39/40.

adidas Group currency-neutral sales increase at double-digit rate in Q2during the second quarter of 2010, Group revenues increased 11% on a currency-neutral basis. currency translation effects had a positive impact on sales in euro terms. Group revenues grew 19% to € 2.917 billion in the second quarter of 2010 from € 2.457 billion in 2009.

Wholesale and Retail segments drive strong sales growth in Q2In the second quarter of 2010, currency-neutral sales increased at a double-digit rate in the Wholesale and retail segments. other Businesses sales decreased slightly. currency-neutral Wholesale revenues increased 12% during the period due to double-digit increases at adidas and reebok. currency-neutral retail sales increased 17% versus the prior year as a result of double-digit adidas and reebok sales growth. revenues in other Businesses declined 1% on a currency-neutral basis. sales growth at reebok-ccM Hockey could not offset declines at taylorMade-adidas Golf and rockport.

currency translation effects had a positive impact on segmental sales in euro terms. Wholesale revenues increased 20% to € 1.928 billion in the second quarter of 2010 from € 1.605 billion in 2009. retail sales increased 24% to € 602 million versus € 486 million in the prior year. sales in other Businesses grew 7% to € 387 million in the second quarter of 2010 (2009: € 362 million).

adidas Group currency-neutral sales increase 7% in the first half of 2010In the first half of 2010, Group revenues increased 7% on a currency-neutral basis. currency translation effects had a positive impact on sales in euro terms. Group revenues grew 11% to € 5.590 billion in the first half of 2010 from € 5.034 billion in 2009 see 11.



N°- 13

N°- 14

FiRst HalF YeaR net sales GRoWtH 1) (currENcy- NEutral) By sEGMENt aNd rEGIoN IN %

FiRst HalF YeaR net sales GRoWtH 1) (IN €) By sEGMENt aNd rEGIoN IN %

Wholesale retailother

Businesses total

Western Europe 10 2 (2) 8European Emerging Markets (3) 27 6 13North america 15 14 2 10Greater china (24) 48 18 (16)other asian Markets 5 (3) 9 4latin america 20 45 (0) 23total 6 16 3 7

1) versus the prior year.

Wholesale retailother

Businesses total

Western Europe 11 3 0 10 European Emerging Markets 0 28 13 15 North america 16 16 5 12 Greater china (23) 49 19 (16)other asian Markets 15 6 18 14 latin america 33 58 1 36 total 10 20 7 11

1) versus the prior year.

1) Excluding HQ/consolidation.

N°- 15

FiRst HalF YeaR net sales BY ReGion 1)

11% latin america

16% other asian Markets

7% Greater china

23% North america

32% Western Europe

11% European Emerging Markets

First half Group sales increase driven by the Wholesale and Retail segments the adidas Group’s sales increase in the first half of 2010 was driven by double-digit growth in the retail segment as well as higher sales in the Wholesale segment and in other Businesses. currency-neutral Wholesale revenues increased 6% during the period driven by higher adidas and reebok sales. currency-neutral retail sales increased 16% versus the prior year as a result of double-digit adidas and reebok sales growth. revenues in other Businesses increased 3% on a currency-neutral basis due to sales growth at taylorMade-adidas Golf.

currency translation effects had a positive impact on segmental sales in euro terms. Wholesale revenues increased 10% to € 3.826 billion in the first half of 2010 from € 3.480 billion in 2009. retail sales increased 20% to € 1.061 billion versus € 886 million in the prior year. sales in other Businesses grew 7% to € 703 million in the first half of 2010 (2009: € 657 million).

currency-neutral sales increase in nearly all regions In the first half of 2010, currency-neutral adidas Group sales increased in all regions except Greater china. revenues in Western Europe increased 8%, primarily as a result of double-digit sales increases in the uK, Germany and spain. In European Emerging Markets, Group sales increased 13% on a currency-neutral basis due to growth in most of the region’s markets, in particular russia. sales for the adidas Group in North america increased 10% on a currency-neutral basis due to strong increases in both the usa and canada. sales in Greater china decreased 16% on a currency-neutral basis. currency-neutral revenues in other asian Markets grew 4% due to increases in most markets. In latin america, sales grew 23% on a currency-neutral basis, with double-digit increases in most of the region’s major markets see 13.

currency translation effects had a positive impact on regional sales in euro terms. Group revenues in Western Europe increased 10% to € 1.772 billion in the first half of 2010 from € 1.618 billion in 2009. In European Emerging Markets, sales grew 15% to € 633 million in the first half of 2010 from € 549 million in 2009. sales in North america increased 12% to € 1.312 billion from € 1.169 billion in 2009. revenues in Greater china decreased 16% to € 403 million in the first half of 2010 from € 481 million in 2009. In other asian Markets, sales increased 14% to € 868 million versus € 764 million in the prior year. revenues in latin america grew 36% to € 601 million from € 443 million in the prior year see 14.

Group sales increase in all product categoriesIn the first half of 2010, sales increased in all product categories on a currency-neutral basis. currency-neutral footwear sales increased 5% during the period. this development was due to increases in all segments, with a double-digit increase in retail. apparel revenues increased 6% on a currency-neutral basis. Growth in the retail and Wholesale segments was partly offset by a decline in other Businesses. currency-neutral hardware sales increased 21% compared to the prior year, primarily due to double-digit growth in Wholesale and other Businesses.

currency translation effects had a positive impact on sales in euro terms. Footwear sales in euro terms increased 9% to € 2.573 billion in the first half of 2010 (2009: € 2.357 billion). apparel sales increased 10% to € 2.392 billion in the first half of 2010 (2009: € 2.183 billion). Hardware sales increased 26% to € 625 million in the first half of 2010 from € 495 million in 2009.



Group gross margin increases 3.7 percentage pointsthe gross margin of the adidas Group increased 3.7 percentage points to 48.8% in the first half of 2010 (2009: 45.1%)

see 17. this development was mainly due to lower input costs, less clearance sales and a larger share of higher-margin retail sales. Positive currency effects related to the appreciation of the russian rouble also had a minor effect on Group gross margin. as a result, gross profit for the adidas Group grew 20% in the first half of 2010 to € 2.727 billion versus € 2.269 billion in the prior year

see 16.

Royalty and commission income growsroyalty and commission income for the adidas Group increased 3% to € 45 million in the first half of 2010 from € 44 million in the prior year. on a currency-neutral basis, royalty and commission income increased 3% as a result of higher licensee sales.

other operating income increasesother operating income includes items such as gains from the disposal of fixed assets and releases of accruals and provisions. other operating income increased 49% to € 72 million in the first half of 2010 from € 48 million in 2009. this development was mainly due to the settlement of a lawsuit and the divestiture of a trademark, each of which had a positive low-double-digit million euro impact on the Group’s financial results.

other operating expenses as a percentage of sales down 1.6 percentage pointsother operating expenses, including depreciation and amortisation, consist of items such as sales working budget, marketing working budget and operating overhead costs. other operating expenses as a percentage of sales decreased 1.6 percentage points to 42.8% in the first half of 2010 from 44.3% in 2009. In absolute terms, other operating expenses increased 7% to € 2.390 billion in the first half of 2010 (2009: € 2.232 billion)

see 18. thereof, sales and marketing working budget expenditures amounted to € 756 million, which represents an increase of 20% versus the prior year level (2009: € 630 million). the increase was primarily related to higher expenditures to support adidas presence at the 2010 FIFa World cup™. as a result of the higher Group sales base, however, sales and marketing working budget expenditures as a percentage of sales increased only 1.0 percentage points to 13.5% (2009: 12.5%).

number of Group employees increases 5%at the end of the first half of 2010, the Group employed 40,791 people. this represents an increase of 5% versus the prior year level of 38,935. New hirings related to the expansion of the Group’s own-retail store base were the main driver of this development. these more than offset declines due to reorganisation initiatives and a hiring freeze the Group implemented for all non-retail-related functions. on a full-time equivalent basis, the number of employees increased 6% to 35,379 at the end of the first half of 2010 (2009: 33,249).

operating margin increases 5.6 percentage pointsthe operating margin of the adidas Group increased 5.6 percentage points to 8.1% in the first half of 2010 (2009: 2.6%) see 20. the operating margin increase was primarily due to the higher gross margin as well as lower other operating expenses as a percentage of sales. as a result, Group operating profit increased 251% to € 454 million versus € 129 million in 2009 see 19.

Financial income up 217%Financial income increased 217% to € 23 million in the first half of 2010 from € 7 million in the prior year, mainly due to positive exchange rate effects.

N°- 18

N°- 19

N°-20

FiRst HalF YeaR otHeR opeRatinG eXpenses € IN MIllIoNs

FiRst HalF YeaR opeRatinG pRoFit € IN MIllIoNs

FiRst HalF YeaR opeRatinG maRGin IN %

20092010

20092010

20092010

2,2322,390

129454

2.68.1

N°- 16

N°- 17

FiRst HalF YeaR GRoss pRoFit € IN MIllIoNs

FiRst HalF YeaR GRoss maRGin IN %

20092010

20092010

2,2692,727

45.148.8



N°-22

FiRst HalF YeaR income BeFoRe taXes € IN MIllIoNs

20092010

37419

N°-23

N°-24

FiRst HalF YeaR net income attRiButaBle to sHaReHoldeRs € IN MIllIoNs

FiRst HalF YeaR diluted eaRninGs peR sHaRe IN €

20062007200820092010

20062007200820092010

226232

28613

295

1.061.09

1.350.10

1.41

Financial expenses decrease 41%Financial expenses decreased 41% to € 58 million in the first half of 2010 (2009: € 99 million) see 21. the non-recurrence of prior year negative exchange rate effects as well as lower interest expenses contributed to the decline.

income before taxes increases stronglyIncome before taxes (IBt) as a percentage of sales increased 6.8 percentage points to 7.5% in the first half of 2010 from 0.7% in 2009. this was primarily a result of the Group’s operating margin increase and lower financial expenses. IBt for the adidas Group increased to € 419 million from € 37 million in 2009 see 22.

net income attributable to shareholders reaches record levelthe Group’s net income attributable to shareholders increased to € 295 million in the first half of 2010 from € 13 million in 2009 see 23. this is the highest ever first half result achieved by the adidas Group. Higher operating profit was the primary reason for this development. the Group’s tax rate decreased 37.2 percentage points to 29.5% in the first half of 2010 (2009: 66.8%), mainly due to a more favourable regional earnings mix compared to the prior year. Net income attributable to non-controlling interests amounted to € 0 million in the first half of 2010 versus negative € 1 million in 2009.

earnings per share reach € 1.41 Following the full conversion of the Group’s convertible bond in the fourth quarter of 2009, the Group has no dilutive potential shares anymore. as a result, diluted earnings per share equal basic earnings per share. In the first half of 2010, basic and diluted earnings per share amounted to € 1.41 see 24. In the prior year period, basic earnings per share amounted to € 0.07 and diluted earnings per share to € 0.10. the weighted average number of shares used in the calculation was 209,216,186 in the first half of 2010. In the prior year period, the number amounted to 193,515,512 for the calculation of basic earnings per share and 209,259,974 for the calculation of diluted earnings per share.

N°-21

FiRst HalF YeaR Financial eXpenses € IN MIllIoNs

20092010

9958


adidas Group FiRst HalF YeaR RepoRt 2010 17inteRim GRoup manaGement RepoRt Group Business Performance Balance sheet and cash Flow statement

N°-25

N°-26

Balance sHeet stRuctuRe 1)

IN % oF total assEts

Balance sHeet stRuctuRe 1)

IN % oF total lIaBIlItIEs aNd EQuIty

assets June 30, 2010 June 30, 2009

total assets (€ in millions) 10,608 9,407

1) For absolute figures see consolidated Balance sheet (IFrs), p. 33.

liabilities and equity June 30, 2010 June 30, 2009

total liabilities and equity (€ in millions) 10,608 9,407

1) For absolute figures see consolidated Balance sheet (IFrs), p. 33.

cash and cash equivalents ..............................5.6

short-term borrowings ....................................2.8

18.4

11.3

1.9

6.4

21.7

25.9

42.6

22.5

15.4

33.9

Fixed assets ...................................................40.1

other liabilities ...............................................24.8

accounts receivable .......................................18.9

accounts payable ...........................................13.8

other assets ...................................................16.1

total equity .....................................................44.6

Inventories .....................................................19.3

long-term borrowings ...................................14.0

Balance sheet and cash Flow statement

total assets increase 13%at the end of June 2010, total assets increased 13% to € 10.608 billion versus € 9.407 billion in the prior year. this was the result of an increase in both current and non-current assets. compared to december 31, 2009, total assets increased 20%.

Group inventories stable Group inventories remained stable at € 2.049 billion at the end of June 2010 versus € 2.041 billion in 2009 see 27. on a currency-neutral basis, inventories declined 11%. this was mainly a result of clearance of excess inventories at all of our brands throughout the last twelve months, primarily in the second half of 2009.

accounts receivable increase 16%at the end of June 2010, Group receivables increased 16% to € 1.999 billion (2009: € 1.729 billion

see 28. on a currency-neutral basis, receivables grew 3%. this development compares to a currency-neutral Group sales increase of 11% in the second quarter of 2010, reflecting our strict discipline in implementing the Group’s trade terms and improved collection of receivables as the economic situation in most markets continued to improve.

other current financial assets up 99%other current financial assets grew 99% to € 311 million at the end of June 2010 from € 157 million in 2009. this development was mainly due to the increase of the fair value of financial instruments.

other current assets down 8% other current assets decreased 8% to € 428 million at the end of June 2010 from € 467 million in 2009, mainly as a result of a decrease in prepayments.

Fixed assets increase 6%Fixed assets increased 6% to € 4.256 billion at the end of June 2010 versus € 4.011 billion in 2009. this mainly reflects positive currency translation effects in an amount of € 402 million on fixed assets denominated in currencies other than the euro. additions in an amount of € 215 million were primarily related to the continued expansion of our own-retail activities and investment into the Group’s It infrastructure. additions were offset by depreciation and amorti-sation amounting to € 289 million, disposals of € 49 million and a net transfer of fixed assets to assets held-for-sale totalling € 34 million. compared to december 31, 2009, fixed assets increased 12%.

assets held-for-sale increase 189% at the end of June 2010, assets held-for-sale increased 189% to € 79 million compared to € 27 million in 2009, due to additional assets now being in the scope of a sale. assets held-for-sale primarily relate to the planned sale of land and buildings in Herzogenaurach, Germany, as well as certain warehouses in various other locations.

other non-current financial assets up 191%other non-current financial assets grew 191% to € 124 million at the end of the first half of 2010 from € 42 million in 2009, mainly driven by the increase of the fair value of financial instruments.

accounts payable increase 38% accounts payable were up 38% to € 1.464 billion at the end of June 2010 versus € 1.060 billion at the end of June 2009 see 29. on a currency-neutral basis, accounts payable increased 29%. this development was mainly attrib-utable to increased production volumes compared to the prior year as well as improved terms with our suppliers.

other current financial liabilities decrease 4%other current financial liabilities declined 4% to € 107 million at the end of June 2010 from € 111 million in 2009, primarily as a result of a decrease in the negative fair value of financial instruments.


adidas Group FiRst HalF YeaR RepoRt 2010 18inteRim GRoup manaGement RepoRt Group Business Performance Balance sheet and cash Flow statement

N°-27

N°-28

N°-29

N°-30

N°-31

inVentoRies 1) € IN MIllIoNs

ReceiVaBles 1) € IN MIllIoNs

accounts paYaBle 1) € IN MIllIoNs

sHaReHoldeRs’ eQuitY 1) € IN MIllIoNs

net BoRRoWinGs 1) € IN MIllIoNs

20092010

20092010

20092010

20092010

20092010

2,0412,049

1,7291,999

1,0601,464

3,1894,729

2,7321,090

1) at June 30.

1) at June 30.

1) at June 30.

1) at June 30.

1) at June 30.

accrued liabilities grow 42%accrued liabilities increased 42% to € 823 million at the end of the first half of 2010 from € 580 million in 2009, mainly due to an increase in accruals for payment of goods and services not yet invoiced.

other current liabilities up 33% other current liabilities were up 33% to € 268 million at the end of June 2010 from € 202 million in 2009, mainly due to increases in tax liabilities other than income taxes.

equity growth supported by conversion of convertible bond shareholders’ equity rose 48% to € 4.729 billion at the end of June 2010 versus € 3.189 billion at the end of June 2009 see 30. the net income generated during the last twelve months and the full conversion of our convertible bond were the main contributors to this development. currency translation effects in an amount of € 563 million positively impacted this development. compared to december 31, 2009, shareholders’ equity increased 25%.

cash flow reflects improved Group profitabilityIn the first half of 2010, net cash outflow from operating activities was € 73 million (2009: € 366 million). the decrease in cash used in operating activities compared to the prior year was primarily due to the improved Group profitability. Net cash outflow from investing activities was € 64 million (2009: € 63 million) and was mainly related to spending for property, plant and equipment such as investments in the furnishing and fitting of stores in our retail segment, in new office buildings and in It systems. Net cash outflow from financing activities totalled € 62 million (2009: € 364 million net inflow). cash inflows from financing activities were related to an increase in long-term borrowings in an amount of € 197 million, which was more than offset by the repayment of short-term borrowings totalling € 186 million and dividends paid in an amount of € 73 million. Exchange rate effects in an amount of € 18 million positively impacted the Group’s cash position in the first half of 2010 (2009: negative 3 million). as a result of all these developments, cash and cash equivalents decreased by € 181 million to € 594 million at the end of June 2010 compared to € 775 million at the end of december 2009.

net borrowings down € 1.642 billionNet borrowings at June 30, 2010 amounted to € 1.090 billion, which represents a decrease of € 1.642 billion, or 60%, versus € 2.732 billion at the end of June 2009 see 31. lower working capital requirements and the complete conversion of our € 400 million convertible bond in the fourth quarter of 2009 were the main reasons for the net debt decline. this positive development was partly offset by negative currency translation effects in an amount of € 35 million. consequently, the Group’s ratio of net borrowings over 12-month rolling EBItda decreased to 1.0 at the end of June 2010 versus 2.9 in the prior year.


adidas Group FiRst HalF YeaR RepoRt 2010 19inteRim GRoup manaGement RepoRt Business Performance Wholesale

Business performance Wholesalethe Wholesale segment comprises the adidas and Reebok business activities with retailers. in the first half of 2010, currency-

neutral sales in the Wholesale segment increased 6%. in euro terms, Wholesale sales improved 10% to € 3.826 billion from

€ 3.480 billion in the prior year. Gross margin increased 0.8 percentage points to 42.0% (2009: 41.2%). this was mainly a result

of less clearance sales and lower input costs. Gross profit grew 12% to € 1.608 billion in the first half of 2010 from € 1.434 billion

in 2009. as a result of the gross margin increase, which more than offset higher operating expenses as a percentage of sales,

segmental operating margin improved 0.5 percentage points to 32.2% in the first half of 2010 versus 31.7% in the prior year. in

absolute terms, segmental operating profit grew 12% to € 1.233 billion in the first half of 2010 versus € 1.104 billion in 2009.

currency-neutral segmental sales up 12% in second quarter 2010In the second quarter of 2010, revenues for the Wholesale segment increased 12% on a currency-neutral basis. this development was due to growth at both adidas sport Performance and adidas sport style as well as reebok. currency translation effects positively impacted segmental revenues in euro terms. sales in the Wholesale segment grew 20% to € 1.928 billion in the second quarter of 2010 from € 1.605 billion in 2009 see 35.

First half 2010 currency-neutral segmental sales grow 6%revenues for the Wholesale segment grew 6% on a currency-neutral basis in the first half of 2010. this development was due to growth in all areas. currency translation effects positively impacted segmental revenues in euro terms. In euro terms, segmental sales increased 10% to € 3.826 billion in the first half of 2010 from € 3.480 billion in 2009

see 33.

currency-neutral Wholesale sales increase in most regions currency-neutral sales for the Wholesale segment increased in most regions in the first half of 2010. currency-neutral revenues in Western Europe increased 10%, primarily due to sales growth in the uK, Germany and spain, which more than offset declines in other markets. revenues in European Emerging Markets decreased 3% on a currency-neutral basis due to declines in most major markets. currency-neutral Wholesale sales in North america grew 15% due to double-digit growth in both the usa and canada. revenues in Greater china decreased 24% on a currency-neutral basis. sales in other asian Markets grew 5% on a currency-neutral basis due to increases in most markets. In latin america, currency-neutral sales were up 20%, supported by double-digit increases in most major markets.

currency translation effects had a positive impact on regional sales in euro terms. sales in Western Europe improved 11% in the first half of 2010 to € 1.466 billion (2009: € 1.318 billion). In European Emerging Markets, sales were stable compared to the first half of 2009 at € 243 million (2009: € 243 million). revenues in North america increased 16% to € 722 million in the first half of 2010 versus € 622 million in the prior year. In Greater china, revenues decreased 23% to € 328 million in the first half of 2010 (2009: € 428 million). sales in other asian Markets increased 15% to € 555 million in the first half of 2010 from € 485 million in 2009, while revenues in latin america improved 33% to € 511 million in the first half of 2010 (2009: € 384 million) see 34.

N°-32

WHolesale at a Glance € IN MIllIoNs



Net sales 3,826 3,480 10%Gross profit 1,608 1,434 12%Gross margin 42.0% 41.2% 0.8ppsegmental operating profit 1,233 1,104 12%segmental operating margin 32.2% 31.7% 0.5pp

N°-33

WHolesale FiRst HalF YeaR net sales € IN MIllIoNs

200820092010

3,7193,480

3,826



N°-35

WHolesale net sales BY QuaRteR € IN MIllIoNs

Q1 2009 Q1 2010Q2 2009 Q2 2010Q3 2009 Q3 2010Q4 2009 Q4 2010

1,8741,898

1,6051,928

2,036

1,648

N°-34

WHolesale net sales BY ReGion € IN MIllIoNs



change currency-neutral

Western Europe 1,466 1,318 11% 10%European Emerging Markets 243 243 0% (3%)North america 722 622 16% 15%Greater china 328 428 (23%) (24%)other asian Markets 555 485 15% 5%latin america 511 384 33% 20%total 1) 3,826 3,480 10% 6%

1) rounding differences may arise in totals.

currency-neutral adidas sport performance sales increase 2%In the first half of 2010, adidas sport Performance wholesale revenues improved 2% on a currency-neutral basis. Growth was mainly a result of increases in the football category, which was positively impacted by sales related to the 2010 FIFa World cup™ as well as increases in the running category. currency translation effects had a positive impact on revenues in euro terms. In the first half of 2010, adidas sport Performance sales grew 6% to € 2.453 billion from € 2.315 billion in the prior year.

adidas sport style sales increase 18% on a currency-neutral basiscurrency-neutral adidas sport style wholesale revenues grew 18% in the first half of 2010. the increase was driven by strong momentum in style Essentials and originals. currency translation effects positively impacted revenues in euro terms. sport style sales grew 23% to € 737 million in the first half of 2010 (2009: € 601 million).

Reebok sales increase 6% on a currency-neutral basisIn the first half of 2010, reebok wholesale revenues increased 6% on a currency-neutral basis. this was a result of strong sales growth in the walking and running categories due to the toning and Zigtech™ platforms, which more than offset declines in other categories. In euro terms, reebok sales improved 10% to € 628 million in the first half of 2010 from € 573 million in 2009.

Gross margin positively impacted by lower clearance salesWholesale gross margin increased 0.8 percentage points to 42.0% in the first half of 2010 from 41.2% in 2009. this was mainly due to a higher reebok gross margin supported by positive product mix effects and less clearance sales, as well as lower input costs. the adidas brand wholesale gross margin improved 0.4 percentage points to 44.5% in the first half of 2010 (2009: 44.2%). Wholesale gross margin of the reebok brand increased 3.4 percentage points to 29.5% in the first half of 2010 versus 26.2% in the prior year. as a result, Wholesale gross profit improved 12% to € 1.608 billion in the first half of 2010 versus € 1.434 billion in 2009.



segmental operating expenses as a percentage of sales up 0.3 percentage points segmental operating expenses in Whole- sale primarily relate to sales working budget expenses as well as expenditures for sales force, administration and logistics. segmental operating expenses as a percentage of sales increased 0.3 percentage points to 9.8% (2009: 9.5%). this was primarily due to higher sales working budget expenditures. In euro terms, segmental operating expenses grew 14% to € 375 million in the first half of 2010 from € 330 million in 2009.

segmental operating profit increases 12%In the first half of 2010, segmental operating margin increased 0.5 percentage points to 32.2% (2009: 31.7%). this was a result of the gross margin increase, which was partly offset by higher segmental operating expenses as a percentage of sales. segmental operating profit improved 12% to € 1.233 billion in the first half of 2010 versus € 1.104 billion in the prior year.

N°-36

WHolesale seGmental opeRatinG pRoFit BY QuaRteR € IN MIllIoNs

Q1 2009 Q1 2010Q2 2009 Q2 2010Q3 2009 Q3 2010Q4 2009 Q4 2010

614626

490607

703

534


adidas Group FiRst HalF YeaR RepoRt 2010 22inteRim GRoup manaGement RepoRt Business Performance retail

Business performance Retailthe Retail segment comprises the own-retail activities of the adidas and Reebok brands. in the first half of 2010, currency-

neutral Retail sales increased 16%. in euro terms, Retail sales grew 20% to € 1.061 billion (2009: € 886 million). currency-

neutral comparable store sales grew 8% versus the prior year. Gross margin increased 4.2 percentage points to 62.1% (2009:

57.9%). this was mainly a result of a higher proportion of concept store sales at higher margins and the positive currency effects

related to the Russian rouble. Gross profit increased 28% to € 659 million in the first half of 2010 from € 513 million in 2009. as

a result of the increase in gross margin and lower segmental operating expenses as a percentage of sales, segmental operating

margin increased 7.8 percentage points to 18.7% (2009: 10.9%). in absolute terms, segmental operating profit grew 105% to

€ 199 million in the first half of 2010 versus € 97 million in 2009.

currency-neutral Retail sales increase 17% in Q2during the second quarter of 2010, retail revenues increased 17% on a currency-neutral basis as a result of double-digit growth rates at adidas sport Performance and adidas sport style. currency-neutral comparable store sales increased 10%. currency translation effects had a positive impact on sales in euro terms. retail revenues grew 24% to € 602 million in the second quarter of 2010 from € 486 million in 2009

see 40.

currency-neutral Retail sales increase 16% in the first half of 2010In the first half of 2010, retail revenues increased 16% on a currency-neutral basis. concept store, factory outlet and other retail format sales were all up at double-digit rates versus the prior year. currency translation effects had a positive impact on segmental revenues in euro terms. sales grew 20% to € 1.061 billion from € 886 million in the prior year see 38. currency-neutral comparable store sales grew 8% versus the prior year, with increases in all store formats, driven by double-digit growth in concept stores.

own-retail store base increases at June 30, 2010, the adidas Group retail segment operated 2,240 stores. this represents a net increase of 28 or 1% versus the year-end level of 2,212. over the course of the first half, the Group opened 97 new stores, 69 stores were closed and 17 stores were remodelled. the number of concept stores increased by 28 to 1,231 at the end of the first half of 2010 (december 31, 2009: 1,203). the number of factory outlets grew by 14 to 769 at the end of the period (december 31, 2009: 755). other formats, which include e-commerce, declined by 14 to 240 (december 31, 2009: 254). of the total number of stores, 1,636 were adidas and 604 reebok branded (december 31, 2009: 1,626 adidas, 586 reebok).

N°-37

Retail at a Glance € IN MIllIoNs



Net sales 1,061 886 20%Gross profit 659 513 28%Gross margin 62.1% 57.9% 4.2ppsegmental operating profit 199 97 105%segmental operating margin 18.7% 10.9% 7.8pp

N°-38

Retail FiRst HalF YeaR net sales € IN MIllIoNs

200820092010

783886

1,061



N°-40

Retail net sales BY QuaRteR € IN MIllIoNs

Q1 2009 Q1 2010Q2 2009 Q2 2010Q3 2009 Q3 2010Q4 2009 Q4 2010

400459

486602

524

497

N°-39

Retail net sales BY ReGion € IN MIllIoNs




Western Europe 192 186 3% 2%European Emerging Markets 377 295 28% 27%North america 194 168 16% 14%Greater china 61 41 49% 48%other asian Markets 152 143 6% (3%)latin america 84 53 58% 45%total 1) 1,061 886 20% 16%


currency-neutral Retail sales increase in nearly all regions currency-neutral retail sales increased in all regions except other asian Markets. retail revenues in Western Europe grew 2% on a currency-neutral basis mainly due to increases in spain, Italy and Germany. sales in European Emerging Markets increased 27% on a currency-neutral basis, driven by growth in most of the region’s markets, in particular russia. currency-neutral retail sales in North america grew 14% due to increases in the usa and canada. retail revenues in Greater china increased 48% on a currency-neutral basis. sales in other asian Markets declined 3% on a currency-neutral basis primarily as a result of decreases in Japan. In latin america, currency-neutral retail sales grew 45% due to double-digit increases in all major markets.

currency translation effects had a positive impact on regional sales in euro terms. retail sales in Western Europe increased 3% to € 192 million in the first half of 2010 (2009: € 186 million). In European Emerging Markets, sales increased 28% to € 377 million versus € 295 million in the prior year. revenues in North america grew 16% to € 194 million in the first half of 2010 from € 168 million in 2009. In Greater china, sales increased 49% to € 61 million versus € 41 million in the prior year. sales in other asian Markets increased 6% to € 152 million in the first half of 2010 (2009: € 143 million), while revenues in latin america improved 58% to € 84 million in the first half of 2010 versus € 53 million in the prior year

see 39.

concept store sales up 21% on a currency-neutral basisconcept store revenues include sales from adidas sport Performance, adidas sport style and reebok concept stores. In the first half of 2010, concept store revenues increased 21% on a currency-neutral basis. sales increased at double-digit rates at both adidas and reebok. currency translation effects had a positive impact on sales in euro terms. concept store sales increased 25% to € 489 million in the first half of 2010 from € 392 million in 2009. currency-neutral comparable concept store sales increased 13%.

Factory outlet sales grow 11% on a currency-neutral basis Factory outlet revenues include sales from adidas and reebok factory outlets. In the first half of 2010, factory outlet revenues grew 11% on a currency-neutral basis. sales increased at both adidas and reebok. currency translation effects had a positive impact on sales in euro terms. Factory outlet sales increased 14% to € 527 million in the first half of 2010 from € 463 million in 2009. comparable factory outlet sales increased 2% in the first half of 2010 on a currency-neutral basis.



currency-neutral sales from other retail formats up 45% revenues from other retail formats include adidas and reebok concession corners and e-commerce operations. In the first half of 2010, sales from other retail formats increased 45% on a currency-neutral basis. currency translation effects had a positive impact on sales in euro terms. revenues from other retail formats increased 50% to € 45 million in the first half of 2010 from € 30 million in 2009. currency-neutral comparable sales from other retail formats increased 61%.

adidas and Reebok branded Retail sales increaseIn the first half of 2010, adidas Group retail sales increased at both adidas and reebok. currency-neutral adidas sport Performance revenues grew 15% in the period. adidas sport style retail sales increased 22% versus the prior year on a currency-neutral basis. currency-neutral reebok sales were 19% higher compared to the prior year. comparable store sales for the adidas brand increased 7% on a currency-neutral basis, whereas reebok sales grew 15%. currency translation effects had a positive impact on revenues in euro terms. adidas sport Performance own-retail sales increased 18% to € 630 million in the first half of 2010 from € 533 million in 2009. adidas sport style own-retail sales were up 26% to € 247 million in the first half of 2010 from € 196 million in 2009. own-retail sales of reebok branded products grew 21% to € 183 million in the first half of 2010 (2009: € 151 million).

Retail gross margin increases 4.2 percentage pointsGross margin in the retail segment increased 4.2 percentage points to 62.1% in the first half of 2010 from 57.9% in 2009. this was mainly a result of a higher proportion of concept store sales at higher margins and the positive currency effects related to the russian rouble. Gross margin increased across all store formats. By brand, adidas gross margin grew 3.5 percentage points to 63.8% (2009: 60.3%) and reebok’s gross margin increased 7.9 percentage points to 54.4% (2009: 46.5%). retail gross profit increased 28% to € 659 million in the first half of 2010 from € 513 million in 2009.

segmental operating expenses as a percentage of sales down 3.6 percentage points segmental operating expenses in retail primarily relate to personnel and rent expenses as well as the sales working budget. segmental operating expenses as a percentage of sales declined 3.6 percentage points to 43.4% (2009: 47.0%). this was a result of the strong sales expansion which more than offset the effects from higher sales working budget expenses and higher expenses related to the expansion of the Group’s store base. In euro terms, segmental operating expenses increased 11% to € 460 million in the first half of 2010 from € 416 million in 2009.

segmental operating margin increases 7.8 percentage pointsIn the first half of 2010, segmental operating margin increased 7.8 percentage points to 18.7% (2009: 10.9%). this was a result of the gross margin increase and lower segmental operating expenses as a percentage of sales. In absolute terms, segmental operating profit increased 105% to € 199 million in the first half of 2010 versus € 97 million in the prior year.

N°-41

Retail seGmental opeRatinG pRoFit BY QuaRteR € IN MIllIoNs

Q1 2009 Q1 2010Q2 2009 Q2 2010Q3 2009 Q3 2010Q4 2009 Q4 2010

1552

82147

99

64


adidas Group FiRst HalF YeaR RepoRt 2010 25inteRim GRoup manaGement RepoRt Business Performance other Businesses

Business performance other Businessesother Businesses primarily include the taylormade-adidas Golf, Rockport and Reebok-ccm Hockey segments. in addition,

the segment other centrally managed Brands, which comprises brands such as Y-3, is also included. in the first half of 2010,

currency-neutral sales of other Businesses increased 3%. in euro terms, sales grew 7% to € 703 million (2009: € 657 million).

Gross margin increased 5.8 percentage points to 44.6% (2009: 38.8%). this was mainly a result of positive product mix effects

and less clearance sales in the taylormade-adidas Golf segment, as well as less clearance sales in the Rockport segment. Gross

profit increased 23% to € 313 million in the first half of 2010 from € 255 million in 2009. as a result of the increase in gross

margin and lower segmental operating expenses as a percentage of sales, segmental operating margin increased 8.4 percentage

points to 28.0% (2009: 19.5%). in absolute terms, segmental operating profit grew 53% to € 197 million in the first half of 2010

versus € 128 million in 2009.

currency-neutral sales of other Businesses decrease 1% in Q2In the second quarter of 2010, revenues of other Businesses declined 1% on a currency-neutral basis as growth at reebok-ccM Hockey could not offset declines at taylorMade-adidas Golf and rockport. currency translation effects positively impacted revenues in euro terms. sales of other Businesses increased 7% to € 387 million in the second quarter of 2010 (2009: € 362 million) see 45.

First half currency-neutral sales of other Businesses grow 3%In the first half of 2010, revenues of other Businesses increased 3% on a currency-neutral basis. Growth was driven by increases at taylorMade-adidas Golf. sales declined at rockport and reebok-ccM Hockey. currency translation effects positively impacted revenues in euro terms. sales of other Businesses increased 7% to € 703 million in the first half of 2010 (2009: € 657 million) see 43.

currency-neutral sales of other Businesses increase in nearly all regions First half currency-neutral sales of other Businesses increased in all regions except Western Europe and latin america. currency-neutral sales in Western Europe decreased 2% as higher reebok-ccM Hockey sales could not offset declines at rockport. revenues in European Emerging Markets increased 6% on a currency-neutral basis, primarily due to higher taylorMade-adidas Golf and rockport sales which more than offset declines at reebok-ccM Hockey. currency-neutral sales in North america increased 2% due to sales increases at taylorMade-adidas Golf, partly offset by declines at rockport and reebok-ccM Hockey. revenues in Greater china increased 18% on a currency-neutral basis as a result of higher taylorMade-adidas Golf sales.

N°-42

otHeR Businesses at a Glance € IN MIllIoNs



Net sales 703 657 7%Gross profit 313 255 23%Gross margin 44.6% 38.8% 5.8ppsegmental operating profit 197 128 53%segmental operating margin 28.0% 19.5% 8.4pp

N°-43

otHeR Businesses FiRst HalF YeaR net sales € IN MIllIoNs

200820092010

625657

703



N°-45

otHeR Businesses net sales BY QuaRteR € IN MIllIoNs

Q1 2009 Q1 2010Q2 2009 Q2 2010Q3 2009 Q3 2010Q4 2009 Q4 2010

295316

362387

326

310

N°-44

otHeR Businesses net sales BY ReGion € IN MIllIoNs




Western Europe 114 114 0% (2%)European Emerging Markets 13 11 13% 6%North america 395 378 5% 2%Greater china 14 12 19% 18%other asian Markets 160 136 18% 9%latin america 6 6 1% (0%)total 1) 703 657 7% 3%


sales in other asian Markets grew 9% on a currency-neutral basis, supported by increases at taylorMade-adidas Golf and rockport. In latin america, currency-neutral sales were stable as increases at taylorMade-adidas Golf were offset by declines at rockport.

currency translation effects had a positive impact on regional sales in euro terms. sales in Western Europe were stable at € 114 million in the first half of 2010 (2009: € 114 million). In European Emerging Markets, sales grew 13% to € 13 million in the first half of 2010 from € 11 million in 2009. revenues in North america increased 5% to € 395 million in the first half of 2010 versus € 378 million in the prior year. In Greater china, revenues grew 19% to € 14 million in the first half of 2010 (2009: € 12 million). sales in other asian Markets increased 18% to € 160 million in the first half of 2010 from € 136 million in 2009, and revenues in latin america were up 1% to € 6 million in the first half of 2010 (2009: € 6 million) see 44.

currency-neutral taylormade-adidas Golf sales increase 6% In the first half of 2010, taylorMade-adidas Golf revenues increased 6% on a currency-neutral basis. Growth was driven by revenue increases in irons, metalwoods and balls. currency translation effects positively impacted sales in euro terms. In the first half of 2010, taylorMade-adidas Golf revenues increased 10% to € 492 million from € 449 million in the prior year.

currency-neutral Rockport sales decrease 4% In the first half of 2010, rockport revenues decreased 4% on a currency-neutral basis. this was driven by declines in the footwear category. currency translation effects positively impacted sales in euro terms. revenues in the rockport segment decreased 1% to € 114 million in the first half of 2010 from € 115 million in 2009.

Reebok-ccm Hockey sales decline 2% on a currency-neutral basis currency-neutral reebok-ccM Hockey sales decreased 2% in the first half of 2010. this development was due to lower licensed apparel sales. currency translation effects positively impacted sales in euro terms. reebok-ccM Hockey revenues increased 7% to € 73 million in the first half of 2010 from € 68 million in 2009.



First half gross margin of other Businesses increases 5.8 percentage pointsGross margin of other Businesses increased 5.8 percentage points to 44.6% in the first half of 2010 from 38.8% in 2009. this was mainly due to a strong gross margin improvement at taylorMade-adidas Golf as a result of positive product mix effects and less clearance sales. In addition, the rockport gross margin increased significantly versus the prior year due to lower clearance sales. In absolute terms, gross profit increased 23% to € 313 million in the first half of 2010 versus € 255 million in 2009.

segmental operating expenses as a percentage of sales down 2.6 percentage points In the first half of 2010, segmental operating expenses as a percentage of sales decreased 2.6 percentage points to 16.6% (2009: 19.3%). the non-recurrence of prior year expenses related to the integration of ashworth and the divestiture of the Gekko business were the primary drivers of the improvement. In absolute terms, segmental operating expenses decreased 8% to € 117 million in the first half of 2010 from € 127 million in 2009.

First half segmental operating margin increases 8.4 percentage pointsIn the first half of 2010, segmental operating margin increased 8.4 percentage points to 28.0% (2009: 19.5%). this was a result of the gross margin increase and lower operating expenses as a percentage of sales. In absolute terms, segmental operating profit increased 53% to € 197 million in the first half of 2010 versus € 128 million in the prior year.

N°-46

otHeR Businesses seGmental opeRatinG pRoFit BY QuaRteR € IN MIllIoNs

Q1 2009 Q1 2010Q2 2009 Q2 2010Q3 2009 Q3 2010Q4 2009 Q4 2010

4392

85105

76

78


adidas Group FiRst HalF YeaR RepoRt 2010 28inteRim GRoup manaGement RepoRt subsequent Events and outlook

subsequent events and outlookin 2010, consumer spending is expected to recover gradually from the recessionary development in the prior year, although it

is forecasted to lag behind Gdp growth. Based on our extensive pipeline of new product and marketing initiatives, we expect

top- and bottom-line improvements in our Group’s financial results compared to the prior year. our forecast for the development

of Group financial results has changed compared to the outlook on 2010 published in may. We forecast adidas Group sales to

increase at a mid-single-digit rate on a currency-neutral basis due to growth in the Wholesale and Retail segments as well as

in other Businesses. Group gross margin is now expected to increase to a level approaching 47.5% (previously: between 46.5%

and 47.5%), primarily as a result of lower input costs, a larger share of higher-margin Retail sales, less clearance sales and

positive currency effects. operating margin is now forecasted to be around 7.5% (previously: around 7.0%). as a result, we project

earnings per share to grow to a level between € 2.50 and € 2.62 (previously: between € 2.05 and € 2.30).

subsequent events

no subsequent eventssince the end of the second quarter of 2010, there have been no significant organisational, management, economic, socio-political, legal or financing changes which we expect to influence our business materially going forward.

outlook

Global economy forecasted to grow in 2010during the second quarter of 2010, governmental agencies and economic institutes have continued to revise growth forecasts upwards. according to the IMF, the global economy is now expected to grow 4.6% in 2010, driven mainly by expansion in the emerging markets, in particular china, India and latin america. High unemployment as well as low levels of consumer confidence and private consumption means economic forecasts for many developed economies nevertheless remain subdued.

In Europe, GdP in the euro area is expected to grow at a rate of around 1.0% in 2010, benefiting from strong industrial production and accelerating bank lending. However, negative impacts from austerity measures and high sovereign debt levels remain a concern. European emerging markets are estimated to grow at around 3.1% in 2010, driven mainly by russia and turkey. In North america, GdP is projected to return to growth of approximately 3.0% versus the prior year. Buoyed by the unprecedented government stimulus package, corporate investment and private consumption are expected to increase during 2010. However, there are rising concerns that growth rates may moderate in the second half.

In asia, growth rates are expected to accelerate in most emerging economies in 2010, with china, India and Indonesia most positively affected by a rebound in exports. as a result, china’s GdP is forecasted to grow by around 10.0% in 2010, despite tightening monetary policies to prevent the economy from overheating. Japan is expected to expand by 3.0% in 2010, driven by exports, however domestic consumption is expected to remain weak after government stimulus packages come to an end. In latin america, growth rates are likely to increase to a level of around 5.0% in 2010. Private consumption, export activity and capital expenditures are expected to increase in most major markets in the region.



Global sporting goods industry to expand only moderately In 2010, we expect the global sporting goods industry to expand. However, growth is forecasted to be moderate with considerable regional differences. developed Western European markets such as Germany, spain and the uK are expected to benefit from the 2010 FIFa World cup™. However, increases in the football category are likely to be partly offset by declining sales in other sports categories. after a decrease of sporting goods sales in European emerging markets in 2009, industry sales are expected to improve in 2010, albeit moderately. the North american sporting goods market is forecasted to grow compared to the prior year. the toning category continues to grow strongly and running is also expected to perform well in 2010. other sports categories such as basketball and classics are predicted to remain challenging. In Greater china, the sporting goods industry’s footprint is expected to continue expanding in 2010, albeit at considerably lower rates compared to 2008, the year of the olympic Games. Following the clearance of excess inventory at retail, growth is likely to be more pronounced in the second half compared to the first half. In other asian markets, sporting goods sales development is expected to differ from region to region.

While sales in Japan are forecasted to decline slightly as a result of the negative effects from low levels of private consumption and consumer confidence, emerging asian countries such as India or vietnam are projected to post solid growth. In latin america, growth of the sporting goods industry is expected to continue in 2010, also fuelled by the positive impact of sales related to the 2010 FIFa World cup™ in south africa. Nevertheless, higher import duties in key markets such as Brazil are forecasted to dampen industry growth prospects for international manufacturers.

adidas Group sales to increase at a mid-single-digit rate in 2010We forecast adidas Group sales to increase at a mid-single-digit rate on a currency-neutral basis in 2010. despite the projected global economic recovery, sales development will be negatively tempered by a slow turnaround in consumer demand and continuing cautious retailer buying behaviour. this will be a result of sustained high unemployment rates in many major markets and only moderate improvements in consumer confidence. However, positive impacts from the 2010 FIFa World cup™, our high exposure to fast-growing emerging markets as well as strong improvements at the reebok brand are forecasted to more than offset these negative effects.

currency-neutral Wholesale revenues expected to increaseWe now project currency-neutral Wholesale segment revenues to increase at a mid-single-digit rate compared to the prior year (previously: low- to mid-single-digit rate). order backlog development as well as positive retailer and trade show feedback support our growth expectations for the remainder of 2010. currency-neutral adidas sport Performance sales are forecasted to increase, supported by record football sales in connection with the 2010 FIFa World cup™, for which adidas was an official sponsor. sales in most other major categories are expected to decline. adidas sport style revenues are projected to increase on a currency-neutral basis, mainly as a result of increasing momentum in new product lines such as adidas style Essentials. currency-neutral reebok sales are expected to increase strongly due to double-digit revenue growth in Women’s Fitness as well as improvements in the Men’s training category.

Retail sales to increase at a low- double-digit rate on a currency-neutral basis adidas Group currency-neutral retail segmental sales are projected to grow at a low-double-digit rate in 2010. Expansion of the Group’s own-retail store base will be the primary driver of the revenue increase. the Group expects a net increase of its store base by around 125 adidas and reebok stores in 2010, depending on the timing and avai lability of desired locations. New stores will primarily be located in emerging markets in Eastern Europe. comparable store sales are now expected to increase at a mid-single-digit rate (previously: low- to mid-single-digit rate) compared to the prior year. due to ongoing high price sensitivity of consumers, factory outlets are expected to perform better than concept stores as a result of lower average price points.



currency-neutral sales of other Businesses to increase at a low-single-digit rateIn 2010, revenues of other Businesses are expected to increase at a low-single-digit rate on a currency-neutral basis. taylorMade-adidas Golf revenues are projected to be stable compared to the prior year. the positive effect from new taylorMade product launches in core categories such as metalwoods and irons is likely to be offset by continued weakness in the global golf market. revenues at rockport and reebok-ccM Hockey are forecasted to increase as a result of improvements in the brands’ product portfolio and better consumer reception.

adidas Group sales development expected to differ regionallyWe expect Group currency-neutral revenue development to differ regionally in 2010. In Western Europe, we expect a positive stimulus for Group revenues from sales related to the 2010 FIFa World cup™. However, we believe macroeconomic pressures on consumer spending will continue to have an adverse effect on Group sales development in this region. In European Emerging Markets, the stabilisation of the russian rouble compared to 2009, as well as gradual improvements in underlying consumption trends in several of the region’s markets are expected to have a positive impact on Group sales development. In North america, we expect to benefit from our strong market position in the emerging toning category. as a result, full year Group sales in this region are projected to exceed the prior year level. In Greater china, while initiatives to manage inventory levels at retail resulted in declining first half sales versus the prior year, Group revenues in the second half in this region are forecasted to increase. In other asian Markets, overall macroeconomic challenges in the Japanese market will burden Group sales development while the region’s emerging markets are expected to perform robustly. lastly, in latin america, the strong positioning of our brands as well as positive impetus from sales associated with the 2010 FIFa World cup™ are projected to result in revenue growth for the Group in 2010.

Group gross margin to improve in 2010In 2010, the adidas Group gross margin is now forecasted to increase to a level approaching 47.5% versus 45.4% in 2009 (previously: increase to a level between 46.5% and 47.5%). Improvements are expected in all segments. Group gross margin will benefit from lower sourcing costs as a result of reduced material costs and lower capacity utilisation among suppliers. this effect is expected to moderate in the second half of the year. also, a higher share of sales from the retail segment, which carry a higher gross margin, is forecasted to support Group gross margin development. In addition, lower levels of clearance sales due to reduced inventory levels compared to the prior year as well as the appreciation of the russian rouble are forecasted to contribute to margin increases. However, these positive effects are expected to be partly offset by several negative impacts. ongoing price pressures from a competitive retail environment, in particular in more mature markets, are forecasted to have a slightly negative impact on gross margin. In addition, hedging terms in 2010 will be less favourable compared to the prior year.

Group other operating expenses to decrease as a percentage of sales In 2010, the Group’s other operating expenses as a percentage of sales are expected to decrease modestly (2009: 42.3%). sales and marketing working budget expenses as a percentage of sales are expected to increase versus the prior year to support adidas presence at the 2010 FIFa World cup™ as well as to sustain reebok’s growth strategy in muscle toning and conditioning. However, this increase will be more than offset by lower operating overhead expenditures as a percentage of sales. this will be largely due to the continued hiring freeze in non-retail-related functions and various efficiency improvement measures introduced in 2009, such as the implementation of joint operating models for the adidas and reebok brands and the elimination of regional headquarters. these efficiency gains will outweigh higher adminis-trative and personnel expenses in the retail segment as a result of the build-up of management expertise, the planned expansion of the Group’s store base and expenditures related to the improvement and harmonisation of the Group’s retail processes and systems.

inteRim GRoup manaGement RepoRt subsequent Events and outlook



N°-47

adidas GRoup 2010 outlooK

currency-neutral sales mid-single-digit increaseGross margin approaching 47.5%operating margin around 7.5%Earnings per share € 2.50 to € 2.62

operating margin to show improvement In 2010, we now expect the operating margin for the adidas Group to be around 7.5% (2009: 4.9%; previously: around 7.0%). Gross margin improvements as well as lower other operating expenses as a percentage of sales are expected to contribute to the improvement compared to the prior year.

earnings per share to increase to a level between € 2.50 and € 2.62 Earnings per share are now expected to increase strongly to a level between € 2.50 and € 2.62 (2009 diluted earnings per share: € 1.22; previously: increase to a level between € 2.05 and € 2.30). top-line improvement and an increased operating margin will be the primary drivers of this positive development. In addition, we expect lower interest rate expenses as a result of a lower average level of net borrowings in 2010 compared to the prior year. the Group tax rate is expected to be slightly below the prior year level (2009: 31.5%) as a result of a more favourable earnings mix and the non-recurrence of prior year charges related to the write-down of deferred tax assets.

operating working capital as a percentage of sales to improve Improving operating working capital management continues to be a priority in our efforts to optimise cash flow from operations. In 2010, our goal is to reduce average operating working capital as a percentage of sales (2009: 24.3%). optimisation of order volumes based on expected sales development and rigorous monitoring of inventory ageing are at the forefront of our activities. We will also focus on tightly managing accounts receivable and payment terms with our suppliers.

excess cash to be used to reduce net debt In 2010, we expect continued positive cash flows from operating activities. Investments in tangible and intangible assets are expected to amount to € 250 million to € 350 million (previously: € 300 million to € 400 million) compared to € 240 million in 2009. Investments will focus on adidas and reebok controlled space initiatives, in particular in emerging markets. We intend to largely use excess cash to further reduce net borrowings, which we forecast to be below the prior year level at year-end. We aim to maintain a ratio of net borrowings over EBItda of less than two times as measured at year-end (2009 ratio: 1.2).


adidas Group FiRst HalF YeaR RepoRt 2010 32inteRim consolidated Financial statements (iFRs) responsibility statement

Responsibility statement

to the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Herzogenaurach, July 30, 2010

Herbert Hainer Glenn Bennettchief Executive officer Global operations

robin J. stalker Erich stammingerchief Financial officer Global Brands


adidas Group FiRst HalF YeaR RepoRt 2010 33inteRim consolidated Financial statements (iFRs) consolidated Balance sheet

N°-48

adidas aG consolidated Balance sHeet (iFRs)€ IN MIllIoNs

Jun. 30, 2010 Jun. 30, 2009 change in % dec. 31, 2009

cash and cash equivalents 594 176 237.2 775short-term financial assets 90 128 (29.8) 75accounts receivable 1,999 1,729 15.6 1,429other current financial assets 311 157 98.9 160Inventories 2,049 2,041 0.4 1,471Income tax receivables 91 81 11.7 89other current assets 428 467 (8.4) 360assets classified as held for sale 79 27 188.6 126total current assets 5,641 4,806 17.4 4,485Property, plant and equipment 816 868 (6.0) 723Goodwill 1,610 1,492 7.9 1,478trademarks 1,575 1,367 15.2 1,342other intangible assets 161 186 (13.6) 160long-term financial assets 93 98 (4.4) 91other non-current financial assets 124 42 191.3 58deferred tax assets 463 422 9.7 412other non-current assets 125 126 (0.5) 126total non-current assets 4,967 4,601 8.0 4,390total assets 10,608 9,407 12.8 8,875

short-term borrowings 292 603 (51.5) 198accounts payable 1,464 1,060 38.2 1,166other current financial liabilities 107 111 (3.8) 101Income taxes 247 244 1.3 194Provisions 400 321 24.7 320accrued liabilities 823 580 42.0 625other current liabilities 268 202 32.8 232liabilities classified as held for sale 1 0 n.a. 0total current liabilities 3,602 3,121 15.4 2,836long-term borrowings 1,482 2,433 (39.1) 1,569other non-current financial liabilities 23 13 81.0 25Pensions and similar obligations 167 133 25.8 157deferred tax liabilities 515 430 19.6 433Non-current provisions 23 30 (24.1) 29Non-current accrued liabilities 35 20 69.2 22other non-current liabilities 25 34 (24.6) 28total non-current liabilities 2,270 3,093 (26.6) 2,263share capital 209 194 8.1 209reserves 948 (122) — 212retained earnings 3,572 3,117 14.6 3,350shareholders’ equity 4,729 3,189 48.3 3,771Non-controlling interests 7 4 69.8 5total equity 4,736 3,193 48.3 3,776total liabilities and equity 10,608 9,407 12.8 8,875



adidas Group FiRst HalF YeaR RepoRt 2010 34inteRim consolidated Financial statements (iFRs) consolidated Income statement

N°-49

adidas aG consolidated income statement (iFRs)€ IN MIllIoNs

First half year 2010 First half year 2009 change second quarter 2010 second quarter 2009 change

Net sales 5,590 5,034 11.0% 2,917 2,457 18.7% cost of sales 2,863 2,765 3.5% 1,490 1,352 10.2% Gross profit 2,727 2,269 20.2% 1,427 1,105 29.2% (% of net sales) 48.8% 45.1% 3.7pp 48.9% 45.0% 4.0pp royalty and commission income 45 44 3.0% 24 24 (0.1%)other operating income 72 48 48.8% 25 22 15.8% other operating expenses 2,390 2,232 7.1% 1,281 1,079 18.8% (% of net sales) 42.8% 44.3% (1.6pp) 43.9% 43.9% 0.0pp operating profit 454 129 251.2% 195 72 172.3% (% of net sales) 8.1% 2.6% 5.6pp 6.7% 2.9% 3.8pp Financial income 23 7 217.3% 11 3 314.0% Financial expenses 58 99 (41.1%) 30 47 (34.7%)income before taxes 419 37 1,036.8% 176 28 521.7% (% of net sales) 7.5% 0.7% 6.8pp 6.0% 1.2% 4.9pp Income taxes 124 25 402.6% 50 20 145.0% (% of income before taxes) 29.5% 66.8% (37.2pp) 28.1% 71.3% (43.2pp)net income 295 12 2,310.6% 126 8 1,458.9% (% of net sales) 5.3% 0.2% 5.0pp 4.3% 0.3% 4.0pp net income attributable to shareholders 295 13 2,098.7% 126 9 1,375.1% (% of net sales) 5.3% 0.3% 5.0pp 4.3% 0.3% 4.0pp net income attributable to non-controlling interests 0 (1) 164.9% (0) (1) 78.1%

Basic earnings per share (in €) 1.41 0.07 1,933.7% 0.60 0.04 1,264.4% diluted earnings per share (in €) 1.41 0.10 1,367.9% 0.60 0.06 959.6%



adidas Group FiRst HalF YeaR RepoRt 2010 35inteRim consolidated Financial statements (iFRs) consolidated statement of comprehensive Income and Expense

N°-50

adidas aG consolidated statement oF compReHensiVe income and eXpense€ IN MIllIoNs

First half year 2010 First half year 2009

net income after taxes 295 12

Net gain on cash flow hedges, net of tax 154 (110)actuarial gains of defined benefit plans and asset ceiling effect (Ias 19), net of tax 4 1 currency translation 580 (4)other comprehensive income 738 (114)

total comprehensive income 1,033 (101)

attributable to shareholders of adidas aG 1,031 (100)attributable to non-controlling interests 2 (1)



adidas Group FiRst HalF YeaR RepoRt 2010 36inteRim consolidated Financial statements (iFRs) consolidated statement of changes in Equity

N°-51

adidas aG consolidated statement oF cHanGes in eQuitY (iFRs)€ IN MIllIoNs

share capital

capital reserve

cumulative translation

adjustmentsHedging reserves

other reserves 1)

retained earnings

total shareholders’

equityNon-controlling

interests total equity

Balance at december 31, 2008 194 338 (432) 91 (6) 3,202 3,386 14 3,400

total comprehensive income (4) (110) 1 13 (100) (1) (101)

dividend payment (97) (97) (97) acquisition of shares from non-controlling interest shareholders 0 (11) (11) Newly created non-controlling interests 0 3 3 reclassifications of non-controlling interests in accordance with Ias 32 (0) (0) (0)

Balance at June 30, 2009 194 338 (436) (19) (5) 3,117 3,189 4 3,193

Balance at december 31, 2009 209 722 (451) (41) (18) 3,350 3,771 5 3,776

total comprehensive income 578 154 4 295 1,031 2 1,033

dividend payment (73) (73) (0) (73) reclassifications of non-controlling interests in accordance with Ias 32 0 0 0

Balance at June 30, 2010 209 722 127 113 (14) 3,572 4,729 7 4,736

1) reserves for actuarial gains/losses and share option plans.rounding differences may arise in percentages and totals.


adidas Group FiRst HalF YeaR RepoRt 2010 37inteRim consolidated Financial statements (iFRs) consolidated statement of cash Flows

N°-52

adidas aG consolidated statement oF casH FloWs (iFRs)€ IN MIllIoNs


operating activities:Income before taxes 419 37 adjustments for: depreciation and amortisation 120 136 unrealised foreign exchange losses, net 8 13 Interest income (14) (7) Interest expense 59 69 Gains on sale of property, plant and equipment, net (9) (1)operating profit before working capital changes 583 247 Increase in receivables and other current assets (363) (38) Increase in inventories (371) (13) Increase/(decrease) in accounts payable and other current liabilities 235 (343)cash generated from/(used in) operations before interest and taxes 84 (147) Interest paid (48) (65) Income taxes paid (109) (154)net cash used in operating activities (73) (366)

investing activities: Purchase of trademarks and other intangible assets (11) (20) Proceeds from sale of trademarks and other intangible assets 14 1 Purchase of property, plant and equipment (72) (93) Proceeds from sale of property, plant and equipment 6 34 acquisition of further investments in subsidiaries — (13) acquisition of subsidiaries and other business units net of cash acquired — (4) (Purchase of)/proceeds from sale of short-term financial assets (12) 12 (Purchase of)/proceeds from sale of investments and other long-term assets (3) 13 Interest received 14 7 net cash used in investing activities (64) (63)

Financing activities: Proceeds from long-term borrowings 197 845 dividend paid to shareholders of adidas aG (73) (97) dividend paid to non-controlling interest shareholders (0) — cash repayments of short-term borrowings (186) (384)net cash (used in)/generated from financing activities (62) 364

effect of exchange rates on cash 18 (3)Net decrease of cash and cash equivalents (181) (68)cash and cash equivalents at beginning of period 775 244 cash and cash equivalents at end of period 594 176



adidas Group FiRst HalF YeaR RepoRt 2010 38inteRim consolidated Financial statements (iFRs) Notes to Interim consolidated Financial statements

notes to interim consolidated Financial statements (iFRs)as at June 30, 2010

Basis of preparation 01the interim consolidated financial statements of adidas aG and its subsidiaries (collectively the “Group”) for the first half year ending June 30, 2010 are prepared in accordance with International Financial reporting standards (IFrs) as adopted by the European union. the Group applied all International Financial reporting standards and Interpretations of the International Financial reporting Interpretations committee (IFrIc) effective as at June 30, 2010, with the exception of IFrs 7 “International Financial reporting standard No. 7 – Financial Instruments: disclosures”, which is not obligatory for interim financial reporting.

the accounting policies used in the preparation of the interim consolidated financial statements are consistent with those in the annual consolidated financial statements for the year ending december 31, 2009 and are in line with Ias 34 “International accounting standard No. 34 – Interim Financial reporting”. the interim consolidated financial statements also comply with Gas 16 “German accounting standard No. 16 – Interim Financial reporting”. the interim consolidated financial statements and the interim Group management report have not been audited in accordance with section 317 German commercial code (Handelsgesetzbuch – HGB) or reviewed by an auditor.

the Group believes that the application of new/revised standards and interpretations which are effective for financial years starting from January 1, 2010 does not have a material impact on the Group’s financial position, results of operations and cash flows. the Group is currently analysing the potential impacts of new/revised standards and interpretations that will be effective for financial years after december 31, 2010.

costs that are incurred unevenly during the financial year are anticipated or deferred in the interim consolidated financial statements only if it would be also appropriate to anticipate or defer such costs at the end of the financial year.

these interim consolidated financial statements should be read in conjunction with the 2009 annual consolidated financial statements. the notes contained therein also apply to the interim consolidated financial statements for 2010 and are not repeated unless explicit reference is made to certain changes. the results of operations for the first half year ending June 30, 2010 are not necessarily indicative of results to be expected for the entire year.

seasonality 02the sales of the Group in certain product categories are seasonal and therefore revenues and attributable earnings may vary within the fiscal year. as adidas and reebok brand sales account for approximately 90% of the Group’s net sales, sales and earnings tend to be strongest in the first and third quarters of the fiscal year. However, shifts in the share of sales and attributable earnings of particular product categories, brands or the regional composition may occur throughout the year.

assets/liabilities classified as held-for-sale 03the composition of assets/liabilities classified as held-for-sale is unchanged versus March 31, 2010.

shareholders’ equity 04In the period from January 1, 2010 to June 30, 2010, the nominal capital of adidas aG did not change. consequently, on June 30, 2010, the nominal capital of adidas aG amounted to € 209,216,186, divided into 209,216,186 no-par-value bearer shares (“shares”).

other operating income and other operating expenses 05other operating income mainly includes income from the release of accruals and provisions and other revenues, primarily relating to the positive settlement of a lawsuit and the divestiture of a trademark.

other operating expenses include expenses for marketing, sales and research and development, as well as for logistics and central finance and administration. In addition, they include depreciation on tangible and amortisation on intangible assets, with the exception of other depreciation and amortisation which is included in the cost of sales. In the first half of 2010, depreciation and amortisation amounted to € 118 million (2009: € 132 million).



earnings per share 06Basic earnings per share are calculated by dividing net income by the weighted average number of outstanding shares during the period after deduction of treasury shares.

as a result of the Management share option Plan of adidas aG (MsoP), which was introduced in 1999, and the convertible bond issued in october 2003, which met the required conversion criteria at the balance sheet date, dilutive potential shares existed in the first half of 2009.

Following the full conversion of the Group’s convertible bond in the fourth quarter of 2009 and as no share options are outstanding anymore from the MsoP, the Group has no dilutive potential shares in the first half of 2010.

N°-53

eaRninGs peR sHaRe



Net income attributable to shareholders (€ in millions) 295 13Weighted average number of shares 209,216,186 193,515,512Basic earnings per share (in €) 1.41 0.07Net income attributable to shareholders (€ in millions) 295 13Interest expense on convertible bond, net of taxes (€ in millions) — 7net income used to determine diluted earnings per share (€ in millions) 295 20Weighted average number of shares 209,216,186 193,515,512Weighted share options — 60,147Weighted assumed conversion convertible bond — 15,684,315Weighted average number of shares for diluted earnings per share 209,216,186 209,259,974diluted earnings per share (in €) 1.41 0.10

segmental reporting 07due to the Group’s reorganisation in 2009, the Group is now managed by six operating segments, namely Wholesale, retail, taylorMade-adidas Golf, rockport, reebok-ccM Hockey and other centrally Managed Brands.

the adidas and reebok brands are reported under the segments Wholesale, retail and other centrally Managed Brands.

the taylorMade-adidas Golf segment includes the brands taylorMade, adidas Golf and ashworth.

rockport and reebok-ccM Hockey were formerly part of the reebok segment.

taylorMade-adidas Golf, rockport, reebok-ccM Hockey and other centrally Managed Brands do not meet the definition of a reportable segment and are therefore reported under “other Businesses”.

certain centralised Group functions do not meet the definition of IFrs 8 “International Financial reporting standard No. 8 – operating segments” for an operating segment. this includes functions such as central treasury, worldwide sourcing as well as other headquarters departments. Income and expenses relating to these corporate functions are presented together with other non-allocable items and intersegment eliminations in the reconciliation of segmental operating profit.

inteRim consolidated Financial statements (iFRs) Notes to Interim consolidated Financial statements



N°-54

seGmental inFoRmation€ IN MIllIoNs

Wholesale retail other Businesses total segments

2010 2009 2010 2009 2010 2009 2010 2009

Net sales (non-Group) 1) 3,826 3,480 1,061 886 703 657 5,590 5,023segmental operating profit 1) 1,233 1,104 199 97 197 128 1,629 1,330segmental assets 2) 2,869 2,558 530 442 614 580 4,013 3,580

1) First half year.2) at June 30.

N°-55

seGmental opeRatinG pRoFit € IN MIllIoNs


segmental operating profit for reportable segments 1,432 1,201segmental operating profit for other Businesses 197 128segmental operating profit for HQ/consolidation 124 36Marketing working budget 620 508other operating expenses 724 772royalty income 45 44operating profit 454 129Financial income 23 7Financial expenses 58 99income before taxes 419 37

Following minor changes to the adidas Group’s organisational structure in the first quarter of 2010, the assignment of certain functions has been changed compared to the Group’s prior year annual financial statements. this development has a limited effect on the Group segmental structure. to ensure full comparability of Group financial results in 2010, the Group has decided to adjust the segmental reporting for 2009 retrospectively. While these adjustments have no effect on total Group financial results, first half 2009 Wholesale revenues now amount to € 3.480 billion (instead of € 3.484 billion reported). First half 2009 retail revenues now amount to € 886 million (instead of € 885 million reported). sales of other Businesses amount to € 657 million (instead of € 653 million reported). First half operating profit for 2009 now amounts to € 1.104 billion in the Wholesale segment (instead of € 1.107 billion reported) and € 97 million in the retail segment (instead of € 101 million reported). operating profit of other Businesses remains unchanged. In the interim consolidated financial statements for the first half of 2010, these adjustments have already been reflected in the 2009 comparison base.

Reconciliation

subsequent events 08Between the end of the first half of 2010 and the finalisation of the interim consolidated financial statements on July 30, 2010, there were no major Group-specific matters which we expect to influence our business materially going forward.

Herzogenaurach, July 30, 2010the Executive Board of adidas aG

inteRim consolidated Financial statements (iFRs) Notes to Interim consolidated Financial statements



executive Board and supervisory Board

eXecutiVe BoaRd supeRVisoRY BoaRd

HeRBeRt HaineRchief Executive officer

Glenn BennettGlobal operations

RoBin J. stalKeRFinance

eRicH stamminGeRGlobal Brands

iGoR landauchairman

saBine BaueR 1)

deputy chairwoman

Willi scHWeRdtledeputy chairman

dieteR Hauenstein 1)

dR. WolFGanG JäGeR 1)

dR. steFan JentzscH

HeRBeRt KauFFmann

Roland nosKo 1)

aleXandeR popoV

Hans RupRecHt 1)

Heidi tHaleR-VeH 1)

cHRistian touRRes

1) Employee representative.

Biographical information on our Executive Board members as well as on mandates of the members of the Executive Board and the members of the supervisory Board is available at

www.adidas-Group.com/executive-board and www.adidas-Group.

com/supervisory-board.

Executive Board and supervisory Board



Financial calendar

Nine Months 2010 results November 4, 2010Press release, conference call and webcast

Investor Day November 8, 2010Herzogenaurach, GermanyWebcast

Full Year 2010 results March 2, 2011analyst and press conferences in Herzogenaurach, GermanyPress release, conference call and webcast

First Quarter 2011 results May 4, 2011Press release, conference call and webcast

Annual General Meeting May 12, 2011Fürth (Bavaria), Germany Webcast

Dividend paid May 13, 2011(subject to annual General Meeting approval)

First Half 2011 results August 4, 2011Press release, conference call and webcast

Nine Months 2011 results November 3, 2011Press release, conference call and webcast

2010/2011

Financial calendar



publishing details/contact

adidas aGadi-dassler-str. 191074 HerzogenaurachGermany

tel: + 49 (0) 91 32 84 - 0Fax: + 49 (0) 91 32 84 - 22 41

www.adidas-Group.com

investor Relationstel: + 49 (0) 91 32 84 - 21 87Fax: + 49 (0) 91 32 84 - 31 27Email: [email protected]

www.adidas-Group.com/investors

adidas Group is a member of daI (German share Institute),dIrK (German Investor relations association) and NIrI(National Investor relations Institute, usa).

this report is also available in German.For further adidas Group publications, please see our corporate website.

concept and designHunterlebron, Munich

©2010 adidas aG. adidas, reebok, taylorMade, adidas Golf, ashworth, rockport and ccM are registered trademarks of the adidas Group.

Publishing details/contact

Documents

Q2 Q1 Q3 - cache.pressmailing.net€¦ · adidas Group FiRst HalF YeaR RepoRt 2010 2 N°-FiRst HalF YeaR 2010 Results at a Glance 01 € IN MIllIoNs First half year 2010 First half