adidas-Salomon AG

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(No Transcript)
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adidas-Salomon AG ANNUAL GENERAL MEETING
2005 HERBERT HAINER CHAIRMAN AND CEO
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Agenda

• Key financial figures for 2004
• Highlights 2004
• Standort Germany
• Outlook 2005/2006

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Key Financial Figures 2004

• All targets exceeded
• Increased sales by 7 on a currency-neutral basis
• Raised gross margin to 47.2
• Delivered record earnings growth of 21 to 314
  million
• Reduced net borrowings by almost 40 to 594
  million

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Share Price Development 2004
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• Dividend 2004
• 30 increase to 1.30 per share

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• Share Buyback Program 2005
• Share buyback of up to 10 of shares outstanding

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Share Price Development 2005
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2004 Sales Increased in All Regions

• Europe sales up 3 on a currency-neutral basis
• North America sales up 4 in USD terms
• Asia currency-neutral sales up by almost 20
• Latin America currency-neutral sales up 34

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Currency-Neutral Sales Increased in all Segments
of Total
80 10 10 100
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2
5
Total 6.478 bn
Group
7
2
0
6
4
8
10

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Sports Highlights 2004
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Greece wins EURO 2004
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• VIDEO Greece wins EURO 2004

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Record Sales and Market Leadership in Football

• Record sales with all football products
• Football sales up by more than 20 to over 900
  million
• 35 share of the football market worldwide

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Olympics 2004

• Product supplier for 26 of the 28 sports in
  Athens
• adidas athletes win more than 300 medals
• Highlights Justine Henin-Hardenne, Elena
  Isinbayeva, Ian Thorpe

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• VIDEO Olympic Highlights

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Innovations 2004adidas_1 und r7 quad Driver
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adidas_1

• Worlds first intelligent shoe
• Sold out within a short time
• Made headlines around the world

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r7 quad Driver

• First metalwood that allows players to adjust
  weight distribution in the head of the club
• Number one driver on the US and European PGA Tours

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Brand Campaign 2004 Impossible is Nothing
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• VIDEO Gimme the ball Commercial

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David Beckham
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Missy Elliott
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adidas by Stella McCartney
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T-Mac and Garnett
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Major League Soccer
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Partnership Agreement with FIFA through to 2014
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Official Sportswear Partnerof the Beijing
Olympics in 2008
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FC Chelsea Partnership Starting 2006/2007
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2006 FIFA World Cup

• adidas is market leader in football
• Target 2006 sales of more than 1 billion with
  football products

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2006 FIFA World Cup

• Preparations for the World Cup are well on their
  way
• First products will hit the market at the end of
  2005
• Official Match Ball will be presented in December

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Employees in Germany

• Around 2,600 employees in Germany
• 2004 almost 300 new jobs created
• 2005 another 150 to 200 jobs planned

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Scheinfeld Production
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World of Sports

• Investments of 30 million
• June 2005 Opening of our football stadium
• Spring 2006 Opening of Adi Dassler Brand Center

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First Quarter 2005

• Currency-neutral sales up 11
• Gross margin reached 46.9
• Net income grew 26 on a like-for-like basis or
  46 in reported terms

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Sale of Salomon to Amer Sports Corporation

• Sales and profitability of Salomon higher than in
  1997
• Brands have terrific consumer reputations
• Preliminary transaction value 485 million

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Reasons for the Sale

• Focus on our core strengths in the footwear and
  apparel market and the growing golf category
• Consolidation in the winter sporting goods
  industry
• Amer Sports is ideal partner to bring Salomon to
  the next level

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Timelines

• Approval of antitrust authorities
• Transaction closing by end of Q3 2005
• Companys name for the time being adidas-Salomon
  AG, will later be changed to adidas AG

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Use of Proceeds

• Strengthen core competencies
• Share buyback program

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Targets for 2005

• Mid- to high single-digit-sales growth
• Gross margin to reach record 2004 level
• Operating margin increase higher than expected
• Reported net income for 2005 will increase by
  around 20

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Summary

• 2004 was a record year
• Successful Q1 2005
• Sale of Salomon strengthens our core competencies
• Excellent market position

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• Thank You!