Adidas Ag · XETR:ADS
Adidas — FY2022 Earnings Presentation
84 slides from Adidas's earnings presentation, Mar 8, 2023
Slide 1: FY 2022 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: Opening, Recap 2022, Taking Stock, Outlook
OPENING s.oen cuoen RECAP 2022 tien onnever TAKING STOCK suoen curoen OUTLOOK ssoen curoen :
Slide 4: Opening
OPENING BJORN GULDEN CEO
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Slide 6: I am proud to be here
| AM PROUD TO BE HERE
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Slide 8: Sports taking
SPORTSIAKING ANE
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Slide 10: Comfort unlocks possibilities
Ac Sohal COMFORT UNLOCKS | POSSIBILITIES aiff Pe | rd SUPPORT 1S EVERYTHING — a seoniswin voars
Slide 11: Market- and company-specific headwinds
MARKET- AND COMPANY-SPECIFIC /PWARIN UKRAINE adidas
Slide 12: FY 2022 financial results
2 4)/74F INANCIAL RESULTS € IN MILLIONS NET SALES GROSS MARGIN
Slide 13: Operating margin by market
Operating margin: 19.6% (-1.7pp vs. 2021) Operating margin: 15.5% (-3.4pp vs. 2021) Operating margin: 10.1% (-15.8pp vs. 2021) Operating margin: 21.7% (+0.7pp vs. 2021) Operating margin: 22.4% (+4.1pp vs. 2021)
Slide 14: FY 2022 revenue growth by category: Football
FY 2022 REVENUE GROWTH BY y a So =! = =e FOOTBALL adidas
Slide 15: FY 2022 revenue growth by category: Sportswear
FY 2022 REVENUE GROWTH BY © .\)2!'')\)/ SPORTSWEAR
Slide 16: FY 2022 revenue growth by channel
FY 2022 REVENUE GROWTH THY PEE P ao 39% q6 Se -— ore pbs 7 19% OSI Woe | \ WA eee } ™ MW a ’ OWN ae E-COM . #4770 61% aie. WHOLESALE —- FY 2022 CHANNEL SPLIT
Slide 17: Quarterly revenue growth by market
QUARTERLY REVENUE GROWTH BY |) .\:) (= 012022 022022 032022 042022 FY 2022 | EMEA % ™% T 12% % GREATER CHINA 35% 35% 2% 50% 36% NORTH AMERICA B% 21% 8h 6% 12% | pac | 16% 3h 15% 16% 4% LATIN AMERICA 38% 37% 5I% 41% Aa TOTAL COMPANY 3% A A % Th adidas
Slide 18: FY 2022 income statement
FY 2022 »1) : € IN MILLIONS er /.) 21,234 “6% GROSS PROFIT 10,644 10,765 M GROSS MARGIN AT 50.7% -3.4PP OPERATING EXPENSES 10,260 8,892 15% a 1986 -b6% re 94% -6.4PP Bh 133 “l% MB 19.4% “15.0PP | NETINCOME 492 83%
Slide 19: FY 2022 operating expenses and one-offs
FY 2022 adidas € IN MILLIONS FY 2022 22,511 10,644 10,260 669 254 ONE-OFFS INCLUDED 59 RUSSIA, CUSTOMS RISKS 253 RUSSIA, LEGAL DISPUTE, RESTRUCTURING 312 RUSSIA, LEGAL DISPUTE, CUSTOMS RISKS, RESTRUCTURING 350 RUSSIA, LEGAL DISPUTE, CUSTOMS RISKS, CASH POOLING, RESTRUCTURING
Slide 20: FY 2022 gross margin development decomposed
FY 2022 © )'59/.\\\5\' DEVELOPMENT DECOMPOSED HIGHER PRODUCT AND FREIGHT COSTS CATEGORY, CHANNEL AND MARKET MIX +2.2PP ee -0.5PP -0.4PP GROSS SUPPLY GROSS MARGIN CHAIN MIX AK eee ee DISCOUNTS PRICING — MARGIN FY 2021 COSTS FY 2022 adidas
Slide 21: Inventories
Q4/19 Q4/20 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22
Slide 22: Inventories
Q4/19 Q4/20 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22
Slide 23: Cash flow composition
COMPOSITION FY 2022 FY 2021 € IN MILLIONS 798 3,828 155 -214 -§27 29 -2,946 -2,466 -2,986 -2,836 18 -267 2 99 -6,047 -2,082 adidas
Slide 24: Net debt and leverage ratio
— € IN BILLIONS 2] 24 FY2019 = FY2020 ~— FY 2021 FY 2022 RATIO (X) FY 2019 FY 2020 FY 2021 FY 2022 m4
Slide 25: Investment-grade credit ratings
INVESTMENT-GRADE § ))5!))) )).\))))ts S&P Global ) Ratings Moopy’s OUTLOOK NEGATIVE NEGATIVE CONSERVATIVE FINANCIAL POLICY, SUFFICIENT LIQUIDITY SOURCES AND LEADING INDUSTRY POSITION
Slide 26: Dividend proposal for 2022
1) 75) PROPOSAL FOR 2022 FY 2021 €3.30 185 MILLION € 610 MILLION €1,492 MILLION 40.9%
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Slide 30: Terrex
eh. TERREX adidas
Slide 31: adidas x Gucci
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Slide 32: Partnerships
NU PARTNERSHIPS FOOTBALL | RUNNING = OLYMPIC : O@® FIFA i best Quiyprc | Bal a re EUROLEAGUE LeEsMILLS OOD (© snseesaays ETHIOPIA adidas
Slide 33: The best athletes
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Slide 34: The best athletes
THE BEST, pS ey Lys ’ ee "4 ’ , +f Ry MIKAELA SHIFFRIN PAS ROSEMARY WANJIRU
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Slide 38: Great and sophisticated stores
GREAT & SOPHISTICATED AMSTERDAM ZARAGOZA PoRTo SHANGHAI GURGAON BOGOTA adidas
Slide 39: Brand flagship stores
MYEONGDONG BRAND FLAGSHIP, SEOUL LND FLAGSHIP STORE, LONDON = ee
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Slide 42: Consumer demographics
Male Female 48% 52% 39% Male Female 61%
Slide 43: Brand rankings
#16 GLOBALLY (2022) HD GERMANY (2023) adidas
Slide 44: ESG ratings
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Slide 45: We have all
WE HAVE ALL ao Re N [HE SHUR RIV WERE UA
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Slide 49: Predator
PREDATOR
Slide 50: Slide 50
Slide 51: Ultraboost
SIULTRABOOSTA
Slide 52: ss O
ss O Y
Slide 53: Marathon athletes
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Slide 56: Issues in Originals and Sportswear
ISSUES IN (52) / 5: nhs => a i. YEEZY ORIGINALS SPORTSWEAR adidas
Slide 57: Great demand, Seoul, Korea
GREAT DEMAND FOR = adidas
Slide 58: Great demand for Samba, Gazelle, Spezial
GREAT DEMAND FOR SAMBA GAZELLE f 2 SPEZIAL ; adidas y
Slide 59: Kith footwear
kithfootwear
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Slide 64: Greater China: difficulties for three years
WE'VE HAD DIFFICULTIES IN |) 2.\)5)06 0). FOR THREE YEAR BUT SOME v's) i5 i's
Slide 65: Positive signals in Greater China
41981-2022 POSITIVE , sera = BEIKE BEUING MARATHON SUCCESSFUL EXECUTION OF BEIJING MARATHON
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Slide 67: China athletes
UES INS WU YIBING SU YIMING HU MINGXUAN XIEZHENYE TANG JIALI : CHINA BASKETBALL MEN’S 200M SPRINT ASIAN WANG QIANG CHINA'S ITATPTITLEIST | OLYMPICS GOLD MEDALIST TEAM GUARD RECORD HOLDER ASIAN GAMES CHAMPION OAM STRIKER
Slide 68: China athletes
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Slide 69: Positive signals
POSITIVE SIGNALS TERRACE WITH GREAT SUCCESS SPEZIAL | 2 i GAZELLE adidas
Slide 70: adidas
adidas
Slide 71: Challenges in North America
RTH AMERICA eee CHALLENGES IN NO ELEVATED INVENTOR HIGH DISCOUNTING adidas
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Slide 73: adidas Basketball
RB \ adidas BASKETBALL
Slide 74: Slide 74
Slide 75: Björn Gulden, CEO
BJORN GULDEN CEO
Slide 76: People & Culture
he PEOPLE & CULTURE
Slide 77: Business model optimization
BUSINESS MODEL OPTIMIZATION adidas 1
Slide 78: Focus on the core
FOCUS ON THE CORE adidas WHS DESIGN DEVELOPMENT SOURCING MARKETING SALES DISTRIBUTION DTC J
Slide 79: In 2023, we will build the base for 2024 and 2025
IN 2023, WE WILL BUILD THE BASE FOR 2024 AND 2025 adidas
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Slide 81: Risks and challenges in the environment
RISKS AND CHALLENGES IN eae ENVIRONMENT ~ GEOPOLITICAL MACROECONOMIC. HIGH INVENTORY TENSIONS CHALLENGES LEVELS adidas
Slide 82: 2023 outlook
2023 WILL BE A OUTLOOK adidas NEGATIVE IMPACT INCLUDED NOT SELLING EXISTING YEEZY INVENTORY NET SALES: -€1,200M OPERATING PROFIT: -€500M WRITE-OFF EXISTING YEEZY INVENTORY ONE-OFF COSTS STRATEGIC REVIEW OPERATING PROFIT: -€500M OPERATING PROFIT: -€200M 8
Slide 83: Executive Board
EXECUTIVE CEO & GLOBAL BRANDS GLOBAL SALES CFO HUMANRESOURCES = GLOBAL OPERATIONS adidas
Slide 84: Investor relations contact
+49 9132 84 2920 [email protected]