Adidas Ag · XETR:ADS
Adidas — Commerzbank German Investment Seminar 2015
23 slides from Adidas's conference presentation, January 2015
Slide 1: Commerzbank German Investment Seminar 2015
Commerzbank German Investment Seminar 2015 New York City Jan 12-14, 2015
Slide 2: adidas Group Sales Up 6% Currency-Neutral In 9M
adidas Group Sales Up 6% Currency-Neutral In 9M 2 • adidas and Reebok sales up 11% and 6% in 9M • Retail sales increase 21% with double-digit growth across all regions • Negative currency effects and weakness in golf weigh on Group earnings • Diluted EPS down 21% to € 3.01
Slide 3: Strong Sales Growth in Emerging Markets YTD
Strong Sales Growth in Emerging Markets YTD +7% Western Europe +20% (7%) European Emerging Markets North America +10% Greater China +22% +2% Latin America Other Asian Markets Sales development on a currency-neutral basis.
Slide 4: adidas And Reebok Enjoy Robust Sales Growth
adidas And Reebok Enjoy Robust Sales Growth 4 Q3 2014 Change 9M 2014 Change Net sales (€ in millions) 3,364 +12%1) 8,904 +11%1) Gross margin 46.2% (2.4pp) 47.0% (1.4pp) Net sales (€ in millions) 447 +7%1) 1,158 +6%1) Gross margin 37.4% (3.0pp) 38.4% (1.4pp) 1) Currency-neutral.
Slide 5: Group Operating Margin Declines To 8.3% In 9M
Group Operating Margin Declines To 8.3% In 9M Q3 2014 9M 2014 Gross profit € 1,952 million € 5,392 million +2% (2%) Gross margin 47.4% 48.5% (1.9pp) (1.3pp) Operating profit € 405 million € 927 million (13%) (20%) Operating margin 9.8% 8.3% (2.1pp) (2.2pp) Net income attributable to € 282 million €
Slide 6: TMaG Negatively Impacted By Weakness In Golf
TMaG Negatively Impacted By Weakness In Golf 6 Golf Market • Currency-neutral sales decline 29% in 9M 2014 • Operating profit negatively impacted by around € 150 million in 9M 2014 • Ongoing measures to clean inventories in the market place • Major elements of restructuring programme at TMaG complet
Slide 7: Consumer Sentiment In Russia/CIS Negatively Impacted
Consumer Sentiment In Russia/CIS Negatively Impacted 7 Russia/CIS • Higher promotional activities caused by weakening consumer sentiment • Operating profit negatively impacted by around € 100 million in 9M 2014 • Accelerating real estate and inventory management initiatives • Review of current store
Slide 8: Currencies Significantly Impact Financial Performance
Currencies Significantly Impact Financial Performance 8 • Around € 550 million negative impact on sales Currencies in 9M 2014 • Around € 150 million negative impact on Group operating profit in 9M 2014
Slide 9: adidas Group Confirms 2014 Full Year Outlook
adidas Group Confirms 2014 Full Year Outlook 9 Group sales (currency-neutral) mid- to high-single-digit increase Wholesale sales (currency-neutral) mid-single-digit increase Retail sales (currency-neutral) low-double-digit increase Other Businesses sales (currency-neutral) double-digit decrease 48.0
Slide 10: Initiatives To Improve Performance
Initiatives To Improve Performance 10 • Stabilise underperforming areas, particularly at TMaG • Adjust investment to account for current market risks • Reorganisation of marketing and sales organisations • Increasing investments in brands • Adjust capital management and shareholder return policies
Slide 11: TMaG Returns With Major Equipment Innovations
TMaG Returns With Major Equipment Innovations 11 • Most played driver on the PGA Tour for 14 years and counting • Major product launches in metalwoods and irons: R15 & Aero Burner enter golf market • Restructuring programme at TMaG completed
Slide 12: Review Of Store Opening Plan
Review Of Store Opening Plan 12 • Strong position in Russia/CIS with wide-reaching network of over 1,100 stores • Initial store opening plan for Russia/CIS under review to compensate for near-term challenges • Strong focus on capital and risk management in 2015
Slide 13: Strengthen Brand Leadership
Strengthen Brand Leadership 13
Slide 14: Increasing Investment In Brands
Increasing Investment In Brands 14
Slide 15: adidas With Strong Product Pipeline In 2015
adidas With Strong Product Pipeline In 2015 15
Slide 16: adidas Welcomes New Assets
adidas Welcomes New Assets 16
Slide 17: Increasing Visibility In US Sports
Increasing Visibility In US Sports 17
Slide 18: adidas To Launch Biggest Sports Campaign Ever
adidas To Launch Biggest Sports Campaign Ever 18
Slide 19: Reebok Continues To Conquer The Fitness World
Reebok Continues To Conquer The Fitness World 19 • UFC Partnership unlocks new business segment • 2015: The Return of `The Pump` • Product evolution across major grassroots activities continues
Slide 20: adidas Group Strengthens Financial Flexibility
adidas Group Strengthens Financial Flexibility • Successful placement of two Eurobonds, to benefit from current low-cost financing opportunities • 7-year Eurobond of € 600 million with a coupon of 1.25% • 12-year Eurobond of € 400 million with a coupon of 2.25% • Announcement of € 1.5 billion shareh
Slide 21: QUESTIONS & ANSWERS
QUESTIONS & ANSWERS
Slide 22: adidas AG American Depositary Receipts
adidas AG American Depositary Receipts 22 Exchange OTCXQ Ratio (ADR:ORD) 2:1 Structure Sponsored Level I ADR Programme Symbol ADDYY Depositary Bank Deutsche Bank CUSIP 00687A107
Slide 23: Upcoming Event Dates
Upcoming Event Dates 23 March 5, 2015 Full Year 2014 Results May 5, 2015 First Quarter 2015 Results May 7, 2015 Annual General Meeting May 8, 2015 Dividend Payment1) August 6, 2015 First Half 2015 Results November 5, 2015 Nine Months 2015 Results 1) Subject to Annual General Meeting Approval.
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