Adidas Ag · XETR:ADS
Adidas — Q2 2023 Earnings Presentation
80 slides from Adidas's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Results
Slide 2: Forward-looking statements disclaimer
This presentation and other statements made in connection herewith may contain forward-looking statements with respect to Management’s plans and expectations for the future development of adidas. Such forward-looking statements are subject to risks and uncertainties, which are beyond the control of
Slide 3: Women's football federations and athletes
Argentina, Colombia, Such as Mary Fowler, Germany, Japan, Alessia Russo, Lena Spain, Sweden, Costa Oberdorf, Wendie Rica, Italy, Jamaica & Renard, Jennifer the Philippines Hermoso, Trinity Rodman…
Slide 4: Play until they can't look away
play until they can't look away
Slide 5: Trinity Rodman
y ’ TRINITY RODMAN
Slide 6: Net sales growth by market segment Y-o-Y
SEGMENTY-0-Y ._
Slide 7: Challenges in North America
CHALLENGES IN NORTH AMERICA K\N adidas SALE adidas
Slide 8: Bienvenido a Miami
x\N BIENVENIDO A WIAMI we |
Slide 9: Lionel Messi contract renewal
Slide 10: Exhibit Select
EXHIBIT SELECT DESIGNED SPECIFICALLY FOR WOMEN OMEN'S BASKETBAL ALIYAH BOSTON JOINS ADIDAS BASKETBALL ~ EXHIBIT SELECT CAMPAIGN ay aN WITH HAILEY VAN LITH, CANDACE PARKER, “WHEGRER CHELSEA GRAY, ALYSHA CLARK.
Slide 11: Gradey Dick and other players join adidas Basketball
GRADEY DICK & DONOVAN JALEN HOOD-SCHIFING JAMES HARDEN MITCHELL TRAE YOUNG JOIN ADIDAS BASKETBALL
Slide 12: Fear of God
adidas FEAR oF 60D
Slide 13: Manchester United extension
Slide 14: Net sales growth by market segment Y-o-Y
Slide 15: Club partnerships
BG AS ROMA NOTTINGHAM FOREST w MACCABI HAIFA My eNgiid mei (
Slide 16: India cricket team plays first game in adidas kit
= | INDIA CRICKET TEAM PLAYS & WINS ’ FIRSTGAMEIN ADIDAS KIT — al
Slide 17: Ma Sichun joins adidas family
Slide 18: Messi & AFA in China
Slide 19: China athletics street tour
Slide 20: Mobile skatepark
Slide 21: Terrex Chongli 168 ultra trail
Slide 22: Trade meeting in Wuhan
Slide 23: New high-tech & sustainable distribution center in Suzhou
Slide 24: adidas Switch FWD
Slide 25: Net sales growth by market segment Y-o-Y
NET SALES GROWTH BY MARKET SEGMENT Y-0-Y NORTH AMERICA EMEA 16°) ; "AD o GREATER CHINA “16% | 18% WM | 2% 16% 0 LATIN AMERICA +30% | «39%
Slide 26: Rose Zhang wins professional debut
ET HAESGL ete D
Slide 27: Jamaica and Costa Rica
yr D JAMAICA eile = ee . a ¢ d ~ = Is ) 7 COSTARICA
Slide 28: Anitta x UEFA Champions League final
ANITTA X UEFA CHAMPIONS LEAGUE FINAL BIZARRAP TEE
Slide 29: Women's shop-in-shop, Colombia
WOMEN’S SHOP-IN-SHOP, COLOMBIA
Slide 30: Net sales growth by market segment Y-o-Y
NET SALES GROWTH BY MARKET SEGMENT Y-0-Y NORTH AMERICA EMEA -16% | -19 “‘T/, | .90 GREATER CHINA 0 | 8% TM 2h +164 Mle LATIN AMERICA aly +30%| +39% | IR
Slide 31: APAC Hub with countries & clusters
APAC Hub with 3 countries & 2 clusters
Slide 32: Standalone markets
STANDALONE MARKETS e Ti
Slide 33: Moving to emerging markets
AS OF /1\7). MOVING TO EMERGING MARKETS... x ME @ SEAR ge OS THAILAND eh. @ PACIFIC? - HEADQUARTERED IN DUBAI | SINGAPORE, MALAYSIA VIETNAM. PHILIPPINES & INDONESIA WITH CAMBODIA LAOS AND MYANMAR MANAGED THROUGH SEA. 2 AUSTRALIA BNEW ZEALAND WITH PAPUA NEW GUINEA AND FL MANAGED THROUGH PAC
Slide 34: Net sales growth by market segment Y-o-Y
NET SALES GROWTH BY MARKET SEGMENT Y-0-Y Pp ae EMEA GREATER CHINA 16% | -18% Wo |s2% = 16% | «1% [wom] [woes] ASIA-PACIFIC LATIN AMERICA Tq | «11% +30% |-39% yl, Al 0%
Slide 35: Q2 2023 revenue growth by market segment
Q2 2023 REVENUE GROWTH BY MARKET SEGMENT - NORTH AMERICA eExet. EMEA EXCL. 0 YEEZY 0 YEEZY 16% =| -20% [fo | -2% LATIN AMERICA ery +50% #29" AT Ov, GREATER CHINA +16" ei nid 1% +5 3 i EXCL. YEEZY 18%
Slide 36: Q2 2023 net sales growth by channel
Q2 2023 NET SALES GROWTH BY 19% OWN RETAIL Ad «-—— DTC Sg Alt eat 56% ™ WHOLESALE 02 2023 CHANNEL GROWTH adidas RESULTS REFLECT CONTINUING OPERATIONS (EXCL, REEBOK) CURRENCY-NEUTRAL NET SALES DEVELOPMENT, 02.2023 CHANNEL SPLIT
Slide 37: Q2 2023 net sales growth by channel
Q2 2023 NET SALES GROWTH BY «21% OWN RETAIL 39% «-—— DTC SN _22b llth 61% ™ WHOLESALE 02 2023 CHANNEL GROWTH adidas RESULTS REFLECT CONTINUING OPERATIONS (EXCL, REEBOK) CURRENCY-NEUTRAL NET SALES DEVELOPMENT, 02.2023 CHANNEL SPLIT
Slide 38: Home of Sport store in Durban, South Africa
ANE RI TOLLE aa “Ral ied neste HOME OF SPORT STORE IN DURBAN, SOUTH AFRICA LARGEST ADIDAS STORE IN AFRICA
Slide 39: Q2 2023 net sales growth by product division
Q2 2023 NET SALES GROWTH BY #1 FOOTWEAR 49% APPAREL ACCESSORIES 8% ACCESSORIES @ 58% +— FOOTWEAR 34% APPAREL —» 02 2023 PRODUCT DIVISION GROWTH adidas 02 2023 PRODUCT DIVISION SPLIT
Slide 40: Q2 2023 net sales growth by category
Q2 2023 NET SALES GROWTH indie TRAINING j00R\, alist} USsPORis EXCL. NAM adidas
Slide 41: Team achievements
~ AL-AHLY- ITH AFRICAN CHAMPIONS LEAGUE TITLE uN MEXICO ITALY U19 38TH PORTUGUESE LEAGUE TITLE GOLD CUP 2023 EUROPEAN CHAMPIONSHIP
Slide 42: Bayern Munich, Juventus, Manchester United
EES BAYERN MUNICH ~— JUVENTUS MANCHESTER UNITED
Slide 43: Real Madrid, Arsenal, Juventus
sooner a REAL MADRID ¥ ~ ARSENAL JUVENTUS
Slide 44: Football boots
FOOTBALL BOOTS CRAZYFAST
Slide 45: Adizero Boston and Adios launch
LAUNCH ALLWEWea, ADIZERO BOSTON 12 & ADIOS 8 ; a} 4 ® 4 ; {q\ AN
Slide 46: Marathon wins
ALEXANDER MUTISO PRAGUE MARATHON JOSPHAT KIPROTICH WORKENESH EDESA RIO MARATHON PRAGUE MARATHON
Slide 47: Athletics champions
JYOTHI YARRAJI ANNA HALL 100M GOLD AT ASIAN US HEPTATHLON CHAMPION sw ATHLETICS CHAMPIONSHIP A
Slide 48: Slide 48
Slide 49: Beijing flagship store, GCA trade show
‘ee y © BEIJING FLAGSHIP STORE GCA TRADE SHOW
Slide 50: Terrex products
RDS d 1 ay ‘ie ag ee | P> ; . er TERREX XPLORIC WIND JACKET : iy > | TERREX XPERIOR LIGHT TERREX TECHROCK REVERSIBLE HOODED FLEECE JACKET WINDWEAVE JACKET
Slide 51: Patrick Mahomes and Mikaela Shiffrin
PATRICK MAHOMES TAKES HOME SVS ; SS MIKAELA SHIFFRIN WINS ESPY ¥ ~ FOR BEST FEMALE ATHLETE
Slide 52: Slide 52
Slide 53: Gold for Türkiye
GOLD-FOR TURKIYE 7 4 J <
Slide 54: Q2 2023 net sales growth by category - Lifestyle
Q2 2023 NET SALES GROWTH BY CATEGORY - LIFESTYLE ORIGINALS
Slide 55: Wales Bonner fashion show
5 WALES BONNER FASHION SHOW SAMBA CAFE YOMIF KEJELCHA — TAMIRAT TOLA ADERA
Slide 56: Yeezy drop
EEZY DROP 2 Latest Laps ENTS YEEZY AVAILABLE FROM AUGUST 2 06 AND SC RY ED PAI XT ONLINE RE NERS IN SOME LOCATION READ PRESS RELEASE FOLLOW FOR UPDATE:
Slide 57: Great sell-through
GREAT SELL-THROUGH FOR} = \\:).\« = Ky GAZELLE D>» SPEZIAL = i 7>
Slide 58: Seoul, Korea
GREAT SELL-THROUGH FOR} = \\:).\« = ee = SPEZIAL Aff Ee ~— CAMPU
Slide 59: Success
* 4 ; SUCCESS whe =v adidas Do it bright in adicolor 70s DISCOVER MORE
Slide 60: Terrace 70s running
70S RUNNING THE OPPORTUNITY TERRACE 70S RUNNING 70S / 80S 70S / 80S FOOTBALL CULTURE EXTEND 70S AESTHETIC T-TOE SPORTING NOSTALGIA
Slide 61: We are worn again by the most relevant consumers
WE ARE WORN AGAIN BY THE RIGHT / MOST RELEVANT CONSUMERS
Slide 62: Slide 62
Slide 63: Q2 financial results
PA YAIFINANCIAL RESULTS € IN MILLIONS 02 2023 022022 y-0-Y NET SALES 5,343 o—| NCL NEY 5,596 ath GROSS PROFIT 2,719 ¢—| INCL. YEEZY 2,815 3% % OF NET SALES 50.9% OF -2PP 50.3% 0.60 adidas ‘FROM CONTINUING OPERATIONS,
Slide 64: Q2 2023 gross margin development decomposed
2 2023!) /)).\\\5 |), DEVELOPMENT DECOMPOSED SUPPLY CHAIN COSTS YEEZY EFFECT [iia DISCOUNTS INVENTORY ALLOWANCE mp || S| | ee 069 - GROSS MARGIN GROSS MARGIN GROSS MARGIN 022022 02 2023 02 2025 EXCL. YEEZY
Slide 65: Q1 2023 gross margin development decomposed
Q170 02 2023!) ))).\\\5 DEVELOPMENT DECOMPOSED } —_biscounts /. a INVENTORY ALLOWANCE GROSS MARGIN GROSS MARGIN 012025 02 2025
Slide 66: Q2 financial results
PA YAIFINANCIAL RESULTS €IN MILLIONS NET SALES GROSS PROFIT % OF NET SALES MARKETING AND POS EXPENSES ‘h OF NET SALES OOH EXPENSES ” OF NET SALES OPERATING PROFIT ‘h OF NET SALES NET INCOME! adidas ‘FROM CONTINUING OPERATIONS, 022023 5,543 e— INCL. YEEZY OF -€400M 2719 -— 50.9% INCL. YEEZY OF -2PP 6
Slide 67: Balance sheet
BALANCE SHEETL U.S eNMLIONS 30 JUN 2023 30 JUN 2022 DEVIATION INVENTORIES 5,540 5,483 +I% | +6% C.N.
Slide 68: Quarterly inventory and working capital trends
Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23
Slide 69: Balance sheet
BALANCE SHEETL U.S €IN MILLIONS INVENTORIES ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE OPERATING WORKING CAPITAL CASH AND CASH EQUIVALENTS 2 30 JUN 2023 5,540 2,567 2,210 5,896 993 30 JUN 2022 5,483 3,022 3,514 5191 1,578 DEVIATION +I% | +6% C.N. 15% | -11% C.N. -35% |-35% C.N. 14% |+22% C.N. “37%
Slide 70: FY 2023 outlook updated
FY 2023) '))')\) UPDATED OLD NEW RATIONALE rae CURRENCY-NEUTRAL P MID-SINGLE-DIGIT DECLINE SLIGHTLY BETTER THAN NET SALES EXPECTED ADIDAS BUSINESS INHI DPERATING PROFIT, dues U2 Usieitas =-€450l | — LOWER POTENTIAL WRITE-OFF £400M OF YEEZY INVENTORY (-€100M) REPORTED IMPACT FROM FIRST YEEZY OPERATIN
Slide 71: Slide 71
Slide 72: Special Olympics, Berlin 2025
SPECIAL OLYMPICS, BERLIN 2025
Slide 73: adidas accrued €100M for donations
ADIDAS ACCRUED € 100M FOR DONATIONS
Slide 74: Up against all hate
igh es Ot UP AGAINST ALL HATE: | “STAN National PTA ADL. everychild.onevoic naacr Hifi STAND UP Fy. N | TO JEWISH 6%) i. sei HATE ' : . oe meer ROBERT KRAFT AND MANY MORE
Slide 75: Partnerships and teams
- DSV BIATHLON q Nh Gicgo | — pene FOOTBALL TEAM / & ‘ ’ as A\Y a Afi, SPECIAL OLYMPICS (@ ARSENAL F.C. FAY 50 BS GERMANY
Slide 76: Lina Magull & Melanie Leupolz
LINA MAGULL & MELANIE LEUPOLZ MIKAELA SHIFFRIN > FANFEST >
Slide 77: Board update
ae ana Sra BOARD UPD a
Slide 78: Welcome
WELCOME,
Slide 79: And...
Slide 80: Investor relations contact
+49 9132 84 2920 [email protected]