Adidas Ag · XETR:ADS
Adidas — Q3 2023 Earnings Presentation
82 slides from Adidas's earnings presentation, November 2023
Slide 1: Q3 2023 Roadshow Presentation
03 2023 ROADSHOW PRESENTATION
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: World's Best Employers
World's Best Employers #12 #] OUT OF 700 IN SPORTS INDUSTRY
Slide 4: Global Week of Inclusion
Slide 5: adidas Runners Restart in Ukraine
ADIDAS RUNNERS RESTART IN UKRAINE
Slide 6: Kinderdörfer Weltweit
KINDERDORFER WELIWEIT
Slide 7: Trending in the Right Direction
TRENDING IN THE RIGHT DIRECTION BOTTOM AND TOP LINE BETTER THAN EXPECTED __ ENERGY INTHE TEAMS IMPROVING FASTER DECISION MAKING ESPECIALLY FOR FW24 GOOD SELL-THROUGH OF NEW PRODUCT AHEAD OF TARGET adidas
Slide 8: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY NEUTRAL NET SALES DEVELOPMENT.
Slide 9: Thank You, Rupert Campbell
THANK YOU, RUPERT CAMPBELL! CHIEF SALES OFFICER PRESIDENT ADIDAS NORTH AMERICA + INTERIM LEAD NORTH AMERICA
Slide 10: Continued Challenges in North America
CONTINUED CHALLENGES IN NORTH AMERICA K\N adidas SALE adidas
Slide 11: Sharpening Our North America Focus - adidas LA Office
SHARPENING OUR NORTH AMERICA FOCUS - ADIDAS LA OFFICE AMERICAN STREET CULTURE BASKETBALL NEW PARTNERSHIPS
Slide 12: North America Launches and Store Openings
SOHO NYC MONCLER LAUNCH 5TH AVENUE NYC TERRACE LAUNCH = i} = 5! AVENUE NYC MLS SEASON KICK-OFF MIAMI LINCOLN ROAD MESSI POP-UP "BAY PLAZA NYC CONCEPT STORE nae 1 el SAN CLEMENTE, CA FACTORY OUTLET
Slide 13: Inter Miami Wins Leagues Cup
INTER MIAMI WINS LEAGUE CUP Leagues CUP2O22 , Hh | ‘ 2:00 MESSI ie
Slide 14: Record Breaking Volleyball Day in Nebraska
RECORD BREAKING VOLLEYBALL DAY IN NEBRASKA BROKE THE ATTENDANCE RECORD FOR ANY WOMEN’S SPORTING EVENT IN GLOBAL HISTORY WITH 92,003 PARTICIPANTS
Slide 15: Unveil
UNVEIL
Slide 16: adidas Signs College Football Athletes
ADIDAS SIGNS COLLEGE FOOTBALL ATHLETES g .\ a | a al a Se W \ “a ie cc caer
Slide 17: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY NEUTRAL NET SALES DEVELOPMENT.
Slide 18: Battle of the Socials Europe
BATTLE OF THE SOCIALS EUROPE INSTAGRAM, TIKTOK, TWITCH AND YOUTUBE
Slide 19: Champions of Asia Cup
PIONS OF ASIA CUP w +e jl FI COUNCIL Wicca me $Puctiaw, — coowos A» pe EH ~ SUPEK 1 8 a at #ASIACUPZU23" ASIAN CRICKET COUNCIL
Slide 20: Cricket World Cup
CRICKET WORLD CUP ee; 3 KA DREAM
Slide 21: Saudi Arabia Office Opening
eh J = — a ya SAUDI ARABIA OFFICE OPENING:
Slide 22: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY NEUTRAL NET SALES DEVELOPMENT.
Slide 23: Shanghai Office
>s SHANGHAI OFFICE re = ea a) CONCERT WITH CHINESE FEDERATION OF LITERATURE AND ARTS CIRCLE prime hal
Slide 24: Greater China Flagship Stores and Campaigns
—e = HONG HONS FLAGSHIP STORE BEIJING SLT BRAND CENTER EDISON CHEN PARTNERSHIP LAUNCH “SHANGHAI FLAGSHIP STORE ORIGINALS CAMPAIGN BEIJING § suT BRAND CENTER ONE WINTER CAMPAIGN CHONGQING 81 BRAND CENTER ONE WINTER CAMPAIGN “BEIJING APM BRAND CENTER “ONE WINTER CAMPAIGN
Slide 25: James Harden China Tour, Huopin Grassroots Program
“JAMES HARDEN. : HUOPIN CHINA TOUR GRASSROOTS PROGRAM ho e y Pp Sy,
Slide 26: Asian Games Athlete Results
XIE ZHENYE GOLD 100M, GOLD 4X 100M RELAY WOMEN VOLLEYBALL 9- TIMES ASIAN CHAMPION IN’A ROW me} ZHENG NINALI LIUOINGYI FIRST EVER BREAK GOLD INHEPTATHLON DANCE MEDAL CHINA TENNIS TEAM 2 GOLD 1 SILVER | BEACH VOLLEYBALL TEAMS ]GOLD, | SILVER, | BRONZE
Slide 27: om Aa" 1.
q 7 om Aa" 1. RR BE abe ape
Slide 28: Grand Opening for Suzhou Distribution Center
Slide 29: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY NEUTRAL NET SALES DEVELOPMENT.
Slide 30: Latin America Marathons and Events
AL MARATON DE LA. AWOKE DE MEKCS fecey A d\ a ~ BUENOS AIRES AUGUST AUGUST — Porvenir MAY JUNE JULY
Slide 31: Costa Rica, San Jose
~ COSTARICA, SAN JOSE
Slide 32: Net Sales Growth
NET SALES GROWTH B
Slide 33: Gangnam Flagship Store, Seoul Music Festival
vl GANGNAM FLAGSHIP STORE, SEOUL MUSIC FESTIVAL IN SEOUL ORIGINALS CAMPAIGN WITH PERFORMANCE FROM DMC, JAY PARK CAT STREET STORE, TOK HIKARI SHIBATA COLLABORATION
Slide 34: Net Sales Growth by Market Segment Y-o-Y
NET SALES GROWTH BY MARKET SEGMENT Y-0-Y NORTH AMERICA Mo 15% LATIN AMERICA +13% |+29% adidas EMEA +2%| «2% oo" es Ya «3% ASIA-PACIFIC +]% | 10% Al +170 (¥ 1D 0%)
Slide 35: Q3 2023 Net Sales Growth by Market Segment
03 2025 NET SALES GROWTH BY MARKET SEGMENT - NORTH AMERICA pia EMEA a -9% 10% #24 | «2% LATIN AMERICA, EXCL. YEEZY 15% +12% AT +1 adidas CCURRENCY-NEUTRAL NET SALES DEVELOPMENT. GREATERCHINA = exc. 0 YEEZY #6% 10% ASIA-PACIFIC... EXCL. YEEZY 1% 5% DN
Slide 36: Q3 2023 Net Sales Growth by Channel
03 2025 NET SALES GROWTH BY WHOLESALE (INCL. FRANCHISE) 10% OWN RETAIL 37% -—— oe on tM wp B% 63% E-COM WHOLESALE 03 2023 CHANNEL GROWTH adidas CCURRENCY-NEUTRAL NET SALES DEVELOPMENT. 03 2023 CHANNEL SPLIT
Slide 37: Chief Digital Officer, SVP Global Digital & Ecommerce
CHIEF DIGITAL OFFICER SVP GLOBAL DIGITAL & ECOMMERCE
Slide 38: Q3 2023 Net Sales Growth by Product Division
03 2023 NET SALES GROWTH BY [/ 6% 2 y 0 ACCESSORIES @ FOOTWEAR a b 360 -— FOOTWEAR APPAREL —» APPAREL 03 2023 PRODUCT DIVISION GROWTH 03 2023 PRODUCT DIVISION SPLIT adidas
Slide 39: Net Sales Growth Specialist Sports
03 NET SALES GROWTH 7 speciauist | | SPORTS adidas CCURRENCY-NEUTRAL NET SALES DEVELOPMENT.
Slide 40: Women's World Cup
WOMEN’S WORLD odpgoes ee Wi MOST WATCHED FEMALE SPORT EVENT IN HISTORY NEARLY 2M TICKETS SOLD (>70% VS 2019) SALMAPARALLUELO MARY EARPS BEST YOUNG PLAYER GOLDEN GLOVE ADIDAS: THE MOST TALKED ABOUT BRAND AT THE WORLD CUP 418 QUARTERFINAL TEAMS WORE fay ADIDAS Ay HINATA MIYAZAWA 7 2X FEDERATION JERSEY
Slide 41: Arsenal Women x Stella McCartney
ARSENAL WOMEN X STELLA MCCARTNEY
Slide 42: Bugatti x adidas
BUGATTI X ADIDAS
Slide 43: cm ie:
cm ie: WT 1 ~ ae CO
Slide 44: Lionel Messi, Jude Bellingham
LIONEL MESSI ¥ JUDE BELLINGHAM 8TH BALLON D'OR KOPA TROPHY
Slide 45: Marathon World and National Records
THD SAn very AMANAL PETROS GERMAN RECORD 2:04:58 TIGIST ASSEFA__ WORLD RECORD 2:11:53
Slide 46: Athlete Wins and Course Records
” wt Y TAMIRAT TOLA ; ‘- PERES JEPCHIRCHIR | CARLOS MAYO WINS NEW YORK CITY MARATHON WITH NEW _.HALFMARATHON (1:07:25) AT ROAD RUNNING RESET SPAIN'S NATIONAL HALFMARATHON BY 13 SECONDS (59:39) COURSE RECORD TIME (2:04:58) CHAMPIONSHIPS IN RIGA IN VALENCIA
Slide 47: Marathon and Road Running Results
ADANE KEBEDE GEBRE (21:26) & JOSHUA BELET TSIGE HAILESLASE ABREHA (2:24:15) 2:04:18 AT AMS AT CAPE TOWN MARATHON __- MARATHON “iia ABHISHEKPAL Evvig ¢HEBOI (20970) & BUZE DIRIBA,2751) __VIBIANCHEPKIRU ATROAD RUNNING CHANPIONSHIPS lube oh AT TORONTO MARATHON 2.7157 AT BEIJING MARATHON
Slide 48: World Records
ne — WORLD RECORD HOBBS KESSLER ae ) AGNES JEBET NGETICH MEN'S MILE WORLD RECORD (35613 ATROAD RUNNING CH ee N ie TWO WORLD ) RECORDS IN ONE DAY (5K: 14:25, 10K: 29:24)
Slide 49: Athletics Gold Medals
MARILEIDY PAULINO GOLD - 400M AMANE BERISO SHANKULE GRANT | HOLLOWAY GOLD - MARATHON GOLD - 100M HURDLES Ra AS DANIELLE WILLIAMS GOLD - 100M HURDLES MILTIADIS TENTOGLOU GOLD - 100M, 200M, F GOLD - 400M AXIOOM RELAY GOLD - 800M GOLD - LONG JUMP ly i\s a ayy e ‘ i J ANTONIO WATSON NOAH LYLES MARCO ARO
Slide 50: Terrex Agravic Speed Ultra
TERREX AGRAVIC SPEED ULTRA WESTERN SK E OLYMP! TOM EVANS WESTERN STATES trailrunner The Fastest Trail Shoes In Chamonix TON! MCCANN oce
Slide 51: Trail Running Results
DMITRY MITYAEV EKATERINA MITYAEVA KIM SCHREIBE V IISKM- IST WOMEN, _ G3KMACE- IST WOMEN, T9KM -IST PLACETO‘59:52 sp OVERALL 13:00:23 SRD OVERALL 05:38:39
Slide 52: Siya Kolisi, South Africa Rugby
fm || | SIYA KOLISISTEERS SOUTH AFRICA TOR Ke Ld 2 ~ ¥ RECOVERY, 9 MONTHS WORLD CHAMPIONS IN 6. R\N
Slide 53: All Blacks Legacy Continues
ALLBLACKSLEGACY — CONTINUES A GAMES E Ny LEGACIES GAMES END. LEGACIES DON'T. AZ | l
Slide 54: Q3 2023 Net Sales Growth: Lifestyle
Q3 SEPTEMBER 2025 NET SALES GROWTH °)(#).))5 50) LIFESTYLE | ORIGINALS, BASKETBALL, PARTNERSHIPS & SKATEBOARDING
Slide 55: Overtime Elite Signs Multi-Year Deal with adidas
v ” eal ” OVERTIME ELITE SIGNS MULTI-MEAR DEALWITH ADIDAS . ‘ ie aN ° ma , R\N * m\Y . a ° x \\ rm 7 ay m J ooues'p : a \Y i A
Slide 56: Anthony Edwards Signature Shoe AE 1
Slide 57: We Gave the World an Original, You Gave Us a Thousand Back
WE GAVE THE WORLD AN ORIGINAL wha YOU GAVE US A THOUSAND BACK =e Ae I saga. ae ee 4 é r ORIGINALS
Slide 58: Originals Campaign Brought to Life Around the World
IN GING. THE CAMPAIGN TO LIFE AROUND THE WORLD —-— —.- ORIGINALS ORCA = oo ee = of = nna. = LATIN AMERICA
Slide 59: Moncler Genius Launch
Slide 60: Originals x Korn
Slide 61: Edison Chen x Originals
EDISON CHEN X ORIGINALS a
Slide 62: CLOT x adidas
CLOT X ADIDAS NEIGHBORHOOD SUPERSTAR
Slide 63: Samba Is Footwear News Shoe of the Year
2023 FOOTWEAR NEWS ACHIEVEMENT AWARDS: SAMBA IS THE SHOE OF THE YEAR
Slide 64: Franchise Models: F50, Samba, Campus, Gazelle
F50 Z.N.E SAMBA CAMPUS GAZELLE H. SPEZIAL SUPERSTAR
Slide 65: Lifestyle Running SL 72
Slide 66: adicolor
Slide 67: Yeezy
ESSN Cis YEEZY sy &, i»
Slide 68: Financial Update
Slide 69: Q3 2023 Financial Result
YAS EINANGIAL RESULT €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, 03 2023 5.999 «| wel very 2955 | am er 644 10.7% eS [Pe 409 «| ML NEY 210 03
Slide 70: Q3 2023 Gross Margin Development
03 2023 fs .)5 | DEVELOPMENT YEEZY Lt] |__BUSINESSMIX. I [a] 49.3% 7 «| = eee a 490% +0.2PP DISCOUNTS [| 48.0% GROSS MARGIN GROSS MARGIN GROSS MARGIN Q3 2022 03 2023 Q3 2023 EXCL. YEEZY
Slide 71: Q3 2023 Gross Margin Development Excl. Yeezy
0270032023 5) 5.\.5)) DEVELOPMENT ‘ra [2 | _pscounrs Jeti eo a (=| DRIVERIMPACTSEXCL. YEEZY 1 GROSS MARGIN GROSS MARGIN 02 2023 05 2025
Slide 72: Balance Sheet
BALANCE SHEET. €IN MILLIONS INVENTORIES ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE OPERATING WORKING CAPITAL CASH AND CASH EQUIVALENTS 2 30 SEP 2023 4,849 272 2,013 5,997 954 30 SEP 2022 6,315 3,240 3,554 6,201 806 DEVIATION -23% | -19% CN. 16%|-12%C.N. 40% |-39% C.N. 10% |-4% C.N. 18%
Slide 73: Inventory Development
iV /8))0/ DEVELOPMENT lana ee LaaNENVON , a 55 #----------------- N 03 2022 042022 012023 022023 03 2023 LEE adidas AS REPORTED. ABSOLUTE INVENTORY POSITION AT THE END OF THE QUARTER
Slide 74: FY 2023 Outlook (Updated)
FY 2023 1) )'0)') (UPDATED INITIAL PREVIOUS UPDATE CURRENT FEBRUARY 9 JULY 24 OCTOBER I7 NET SALES GROWTH HIGH-SINGLE-DIGIT MID-SINGLE-DIGIT CURRENCY-NEUTRAL DECLINE DECLINE OPERATING PROFIT BREAK-EVEN BREAK-EVEN UNDERLYING OPERATING PROFIT -€ 700 MILLION - €450 MILLION REPORTED
Slide 75: FY 2023 Operating Profit Outlook Bridge
FY 2023 Ue INITIAL PREVIOUS UPDATE CURRENT 0 100 | i son | ® -100 REPORTED 150 @ OPERATING ® PROFIT 100 € IN MILLIONS 150 @ “ee @ @) Yeezy Drops 700 @® Less Yeezy Write-Off © Better Underlying Business
Slide 76: Yeezy Impact on Operating Profit
Total Yeezy 0 Total Yeezy Total Yeezy -500 -250 Yeezy 0 Drops Yeezy 1 and 2 Yeezy Drop 1 Write-Off One-offs Yeezy Yeezy Write-Off Write-Off One-offs One-offs Underlying Reported Underlying Reported Underlying Reported
Slide 77: Here We Want to Be
HERE WE WANT TO BE
Slide 78: Upcoming Product Launches
Wik ain TERREX AGRAVIC SPEED ULTRA ADIZERO ADIOS PRO EVO1 X CRAZYFAST STRUNG - NOV 10
Slide 79: Euro Cup 2024 Match Ball, Fear of God, Cricket World Cup
i> EURO CUP 2024 MATCH BALL ” \DE. - p} | \ \ A | ie \ | 33 FEAR OF GOD CRICKET WORLD CUP IN INDIA
Slide 80: We Will Again Be the Best Sports Brand
Slide 81: Q&A
Slide 82: Investor Relations contact
+49 9132 84 2920 [email protected]