Adidas Ag · XETR:ADS
Adidas — adidas-Salomon — Shareholder Meeting (May 2006)
68 slides from Adidas's shareholder meeting presentation, May 11, 2006
Slide 1: adidas-Salomon AG Annual General Meeting 2006
adidas-Salomon AG Annual General Meeting 2006 Stadthalle Fürth May 11, 2006
Slide 2: VIDEO: Highlight 2005
VIDEO: Highlight 2005 2
Slide 3: Herbert Hainer, Chairman and CEO
adidas-Salomon AG ANNUAL GENERAL MEETING 2006 HERBERT HAINER CHAIRMAN AND CEO
Slide 4: Most exciting time in the history of the adidas Group
Most exciting time in the history of the adidas Group 4
Slide 5: Countdown: Only 29 days to go…
Countdown: Only 29 days to go… 5
Slide 6: World Cup as a huge opportunity for Germany
World Cup as a huge opportunity for Germany 6
Slide 7: adidas: Closely linked with football
adidas: Closely linked with football 7
Slide 8: Sales of football products
Sales of football products 2006 sales to increase by at least 30% to more than € 1.2 billion 8
Slide 9: Global market leader in football
Global market leader in football Germany: Increase 2006 market share to 50% Market leader in America, Europe and Asia 9
Slide 10: Reaffirming excellent position
Reaffirming excellent position 10
Slide 11: VIDEO: Impossible Team
VIDEO: Impossible Team 11
Slide 12: adidas: Global market leader in football
adidas: Global market leader in football 12
Slide 13: Double-digit earnings increase in sixth consecutive year
Double-digit earnings increase in sixth consecutive year 2001 2002 2003 2004 2005 2006 Year 13
Slide 14: Sales of nearly € 10 billion 2006
Sales of nearly € 10 billion 2006 2001 2002 2003 2004 2005 2006 Among 500 biggest companies worldwide 14
Slide 15: adidas, Reebok, TaylorMade brands
= adidas Reebok @saylorMade
Slide 16: Vision: global leader in the sporting goods industry
“We strive to be the global leader in the sporting goods industry with sports brands built on a passion for sports and a sporting lifestyle” 16
Slide 17: 2005 full year results
2005 full year results Group sales grow to € 6.6 billion Record gross margin of 48.2% Operating margin increases to 10.7% Earnings grow by 22% to € 383 million Highest net income in Group history 17
Slide 18: Strong balance sheet development
Strong balance sheet development Liquidity considerably improved Net borrowings significantly reduced First net cash position since IPO 18
Slide 19: adidas share outperforms the markets
adidas share outperforms the markets 300 adidas DAX 250 MSCI World Textiles, Apparel & Luxury Goods Index Share price (Index: December 31, 2000=100) 200 150 100 50 0 31/12/2000 31/12/2005 19
Slide 20: Stable dividend payment proposed
Stable dividend payment proposed 1.40 1.30 1.30 1.20 1.00 1.00 1.00 0.92 Proposing stable 0.80 dividend at € 1.30 0.60 per share 0.40 0.20 0.00 2001 2002 2003 2004 2005 Payout ratio of 17% of net income 20
Slide 21: Capital increase
Capital increase 2004: Authorization to increase share capital of the company Share capital increased in November 2005 4,531,250 new no-par-value bearer shares issued against contributions in cash Placed with institutional investors on November 4, 2005 at a price of € 143 per share 21
Slide 22: Very successful issue
Very successful issue Gross proceeds just under € 648 million Capital increase contributes to financing of Reebok acquisition Issue three times oversubscribed Strong share price rise on day of announcement 22
Slide 23: Share split proposed today
Share split proposed today 1:4 share split No dilutive effect as no additional capital is being raised 23
Slide 24: Medium-term outlook
Medium-term outlook High-single-digit sales growth Double-digit earnings growth 2007: Anticipated earnings increase at least 20% Development of new potential and new markets 24
Slide 25: Innovative products
adidas GROUP Innovative products
Slide 26: Goal: One major innovation each year
Goal: One major innovation each year 26
Slide 27: +Teamgeist introduced in December 2005
+Teamgeist™ introduced in December 2005 27
Slide 28: Successful launch of +Teamgeist Berlin
Successful launch of +Teamgeist™ Berlin 28
Slide 29: Strong regional market positions
Strong regional market positions 29
Slide 30: Video: adidas/Reebok Mood Video
Video: adidas/Reebok Mood Video 30
Slide 31: New growth opportunities through Reebok acquisition
New growth opportunities through Reebok acquisition Biggest acquisition in the history of the sporting goods industry Opportunity to further develop company value Excellent integration progress 31
Slide 32: Systematically increasing our strengths
Systematically increasing our strengths Balance sheet sorted Costs cut Distribution optimized New markets opened up Excellent opportunities through greater efficiency and productivity 32
Slide 33: Integration off to a strong start
Integration off to a strong start Bring Reebok up to standard achieved at brands adidas and TaylorMade Total annual cost synergies: € 175 million Total additional annual revenue potential: € 500 million 33
Slide 34: Successful sale of Salomon
Successful sale of Salomon Salomon sold to Amer Sports Corporation in 2005 Focus on core competencies 34
Slide 35: adidas Group
adidas GROUP
Slide 36: Situation at Reebok has improved
Situation at Reebok has improved 2006 mid-single-digit sales decline expected Acquisition already earnings-accretive in 2006 Improve orders by better market positioning 36
Slide 37: Establish strict global brand management
Establish strict global brand management 37
Slide 38: Clear strategic positioning of the brands
Clear strategic positioning of the brands 38
Slide 39: Positioning of the brands
Positioning of the brands Passion for sport and teamwork Enabling athletes to reach their highest performance levels Celebrating individuality Redefining performance and lifestyle 39
Slide 40: Brand communication reflects distinct positioning
Brand communication reflects distinct positioning 40
Slide 41: Reebok: Focus on sports performance and lifestyle
Reebok: Focus on sports performance and lifestyle 41
Slide 42: adidas: Official Outfitter of the NBA starting 2006/07
adidas: Official Outfitter of the NBA starting 2006/07 42
Slide 43: adidas is new partner of Liverpool FC and Chelsea FC
adidas is new partner of Liverpool FC and Chelsea FC 43
Slide 44: Partner of top football clubs
Partner of top football clubs 44
Slide 45: Reebok is new partner of Thierry Henry
Reebok is new partner of Thierry Henry 45
Slide 46: Positioning of Reebok
Positioning of Reebok More global orientation Strong position in all regions Focus on profitability Stronger brand positioning 46
Slide 47: adidas Group buys distribution rights for Reebok in Russia
adidas Group buys distribution rights for Reebok in Russia 47
Slide 48: New adidas Group structure
New adidas Group structure adidas-Salomon AG adidas Reebok TaylorMade 48
Slide 49: Herbert Hainer - Chairman and CEO
Herbert Hainer - Chairman and CEO 49
Slide 50: Erich Stamminger - brand adidas
Erich Stamminger - brand adidas 50
Slide 51: Paul Harrington - brand Reebok
Paul Harrington - brand Reebok 51
Slide 52: Mark King - TaylorMade-adidas Golf
Mark King - TaylorMade-adidas Golf 52
Slide 53: Glenn Bennett - Global Operations
Glenn Bennett - Executive Board Member Responsible for Global Operations 53
Slide 54: Robin Stalker - Chief Financial Officer
Robin Stalker - Chief Financial Officer 54
Slide 55: adidas AG: Name change tribute to brand adidas
Name change tribute to brand adidas adidas AG 55
Slide 56: Ideal brand portfolio
adidas GROUP Ideal brand portfolio @saylorMade
Slide 57: First quarter 2006 results
First quarter 2006 results Currency-neutral sales up by 40% Operating profit increases by 21% Net income attributable to shareholders up by 37% 57
Slide 58: First quarter 2006 results by brand
First quarter 2006 results adidas: Currency-neutral sales up 12% TaylorMade-adidas Golf: Currency-neutral sales increase 26% Reebok: Currency-neutral Netto-Gewinn um 37%sales down 16% gestiegen 58
Slide 59: Results for adidas Group excluding Reebok
Results for adidas Group excluding Reebok Currency-neutral sales up 13% Growth driven by all regions Strong sales increase at adidas and TaylorMade-adidas Golf 59
Slide 60: Brand adidas - growth in all regions: Europe
Brand adidas - growth in all regions Europe: +5%* * currency-neutral 60
Slide 61: Brand adidas - growth in all regions: North America
Brand adidas - growth in all regions North America: +19%* * currency-neutral 61
Slide 62: Brand adidas - growth in all regions: Asia
Brand adidas - growth in all regions Asia: +18%* * currency-neutral 62
Slide 63: Brand adidas - growth in all regions: Latin America
Brand adidas - growth in all regions Latin America: +42%* * currency-neutral 63
Slide 64: TaylorMade-adidas Golf in Q1 2006
TaylorMade-adidas Golf in Q1 2006 North America: Currency-neutral sales up 44% Asia: Currency-neutral sales up 22% Impressive start in 2006 64
Slide 65: Growth strategy secures jobs
Growth strategy secures jobs 65
Slide 66: Thank you
Thank you 66
Slide 67: adidas-Salomon AG Annual General Meeting 2006
adidas-Salomon AG ANNUAL GENERAL MEETING 2006 HERBERT HAINER CHAIRMAN AND CEO
Slide 68: adidas-Salomon AG Annual General Meeting 2006
adidas-Salomon AG Annual General Meeting 2006 Stadthalle Fürth May 11, 2006