Adidas Ag · XETR:ADS
Adidas — Q1 2023 Earnings Presentation
65 slides from Adidas's earnings presentation, May 5, 2023
Slide 1: Q1 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: Financial results Q1 2023
PA SIFINANCIAL RESULT € IN MILLIONS Q12023 RESULTS Q12022 RESULTS y-0-Y EXCL. YEEZY GROSS PROFIT 2,363 2,648 10.8% IN MILLIONS/ % OF NET SALES 44.8% 49.9% IPP OPEX 2,367 2,258 +4.8% IN MILLIONS! % OF NET SALES 44.9% 42.6% +2.3PP OPERATING PROFIT 60 437 -86.2% Ith 82 -7.1PP €IN MILLIONS! % OF NET SAL
Slide 4: Q1 2023 revenue growth by market
01 2023 REVENUEGROWTHBY |||.) 3) NORTHAMERICA =f 20% | 5%
Slide 5: North America
NORTH AMERICE DANIEL PATRICK XNEW YORK RED BULLS FOR NEW YORK FASHION WEEK =A MAJOR LEAGUE EXTENSION PATRICK MAHOMES SUPER BOWL WIN
Slide 6: adidas x collaboration
“ADIDAS X Oi cs A thug ia a) ~~ 4 NIADENNIS | § 9 Jac}
Slide 7: Bad Bunny x Coachella
Slide 8: Harden Vol. 7
HARDEN VOL. 7
Slide 9: adidas x Fear of God
adidas FEAR OF GOD
Slide 10: Lifestyle
LIFESTYLE
Slide 11: Q1 2023 revenue growth by market: EMEA
01 2023 REVENUEGROWTHBY |||.) 3) NORTH AMERICA 2%. a EMEA USsa 20% | 5 +A | 9%
Slide 12: Executive board member global sales
EXECUTIVE BOARD MEMBER GLOBAL SALES MANAGING DIRECTOR EUROPE CONGRATS DAVE MANAGING DIRECTOR EMERGING MARKETS
Slide 13: Q1 2023 revenue growth: Greater China
01 2023 REVENUEGROWTHBY |||.) 3) EXCL. ‘0% y EMEA GREATERCHINA , St, - #0 0 5% #45 | 29%, -94), 0%
Slide 14: Tour of China, Valentine's Day
TOUR OFCHINA 2 Somes | VALENTINE'SDAY
Slide 15: Climacool launch
Slide 16: Sandra Ma and Chen Xiao
SANDRAMA e CHEN XIAO
Slide 17: Shanghai Half Marathon
i | | gh | ’ se 1 —— o “ he ee . i o ‘4 ee a5 ‘5 ae ’ oad , SHANGHAIHALF MARATHON | om i ‘ic | (| = ery & Ci Wer ; vende 1G a
Slide 18: Q1 2023 revenue growth by market
01 2023 REVENUEGROWTHBY |||.) 3) NORTH AMERICA a EMEA EXCL. GREATERCHINA | Xt. -20% | 5% +44 | soo, 99, | 0% ASIA-PACIFIC LATIN AMERICA +16% 49% QI TOTAL COMPANY GROWTH Y-0-Y AT 0%, EXCLUDING YEEZY «9%
Slide 19: Q1 2023 revenue growth by channel
Q1 2023 REVENUE GROWTH BY #5% WHOLESALE lM" OWN RETAIL +12% EXCL. YEEZY E-COM 34% «-—— DTC Sy I9% lsh 66% ™ WHOLESALE 012023 CHANNEL GROWTH 012023 CHANNEL SPLIT
Slide 20: Q1 2023 revenue growth by product division
Q1 2023 REVENUE GROWTH BY Jive sue yn ACCESSORIES @ 57% 37%, -— FOOTWEAR APPAREL 012023 PRODUCT DIVISION GROWTH 012023 PRODUCT DIVISION SPLIT
Slide 21: Net sales by category: Football, Sports
- NET SALES “f SPECIALIST FOOTBALL RM SPORTS
Slide 22: Football Heatspawn Pack
Slide 23: Women's World Cup match ball and away kit
OCEAUNZ - WOMEN'S WORLD CUP MATCH BALL WOMEN’S WORLD CUP AWAY KIT
Slide 24: Football Icons jersey collection
Slide 25: Football Predator x Parley
Slide 26: Kings League and club extensions
KINGS LEAGUE: NEW FOOTBALL FOR GEN Z 1. FC UNION BERLIN , 130 | Tf , 2 : ! E Py Nip x ave ! i : UNION BERLIN MAJORLEAGUE UP “> y EXTENSION EXTENSION mt = Ay
Slide 27: Running campaigns
Slide 28: S forr-ks * hy et =
S forr-ks * hy et = he u MN ou ue ask'a WS why tyes isn't crcl Us | : Agee.
Slide 29: Running Adizero franchise
Slide 30: Winning major races
WINNING MAJOR RACES MUR TOKYO, ROME & PARIS, MARCH 5 PRAGUE & BERLIN, : = APRILI& 2 BOSTON, APRILI7
Slide 31: Athletes and records
140 ATHLETES 2U20 WORLD RECORDS G NATIONAL RECORDS TREGIONAL RECORD 1,000+ ParTiciPANTSIN PUBLIC 5K T20K x VIRTUAL RACE
Slide 32: Move for the Planet
a | at —————— MOVE FOR THE PLANET ae, iy, ae . ie the planet \" june 1-12 Fe A : = i ¥ & . vi La f YS
Slide 33: Training
TRAINING E
Slide 34: Pre-launch bras and leggings at Brooklyn Museum, Rheon partnership
PRE-LAUNCH BRAS & LEGGINGS | AT BROOKLYN MUSEUM RHEON™ PARTNERSHIP
Slide 35: Outdoor: Congratulations Mikaela Shiffrin
Slide 36: Outdoor
OUTDOOR BY WOMEN FOR WOMEN:
Slide 37: Terrex x National Geographic
Pi San PAS ERREX X NATIONAL GEOGRAPHIC: <P st
Slide 38: Terrex x And Wander
Slide 39: First ever Ultraboost Golf
Slide 40: Rose Zhang wins National Women's Amateur Championship
um \ ROSE ZHANG WINS NATIONAL A WOMEN’S AMATEUR A CHAMPIONSHIP i A 1 aa ww re F ? ‘ aN f x, a > R
Slide 41: World title wins and Special Olympics outfitting
NIKHAT TAREEN \ LOVLINABORGOHAIN WORLD TITLE WIN WORLD TITLE WIN : Se SPECIAL OLYMPICS EXTENSION 2023 OUTFITTING
Slide 42: Sportswear
Q1 2023 REVENUE GROWTH BY SPORTSWEAR
Slide 43: Samba, Gazelle, Spezial, Campus
SAMBA GAZELLE SPEZIAL CAMPUS
Slide 44: New retail successes
NEW RETAIL === 4 SUCCESSES =a Py CAMPUS whe y i adidas Fieg KITH STORE TOKYO, RONNIE FIEG X CLARKS X ADIDAS SAMBA FIEG X CLARKS X ADIDAS SAMBALAUNCH §-
Slide 45: Gazelle on the Lyst Index; Y-3, BAPE, Campus 80s
How the Adidas Gazelle Sneaker Made The Lyst Index Hottest Product List Oe Y-3 SPRING/ WN BAPE® 20 EARS OF SUMMER 25: CHAPTER 2 COLLABORATION CAMPUS 80S Members Week is live. CONSORTIUMCUP = MEMBERS WEEK WINNER:OFFSPRING ©) <a. se SPRINGISUMMER23 ~~ Pwr Ny —
Slide 46: Lifestyle: Home of Classics
Slide 47: adidas x Gucci SS23 Collection
Slide 48: Humanrace Samba Colors by Pharrell
Slide 49: Sportswear
Slide 50: Z SnD
Z SnD X
Slide 51: Balance sheet
BALANCE SHEET U3 €IN MILLIONS INVENTORIES ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE OPERATING WORKING CAPITAL CASH AND CASH EQUIVALENTS 31MAR 2025 5,675 2,818 2,102 6,391 718 31MAR 2022 4,542 2,819 217 4,643 3,050 DEVIATION +25% 0%
Slide 52: Quarterly development Q1/22 to Q1/23
Q1/22 Q2/22 Q3/22 Q4/22 Q1/23
Slide 53: Own the Game, Earn the Game
Slide 54: Partner Camp
Slide 55: Football is Home
Slide 56: Wins: world majors and world records
54% WINS TOP 50 50% 4 WORLD WORLD MAJORS RECORDS
Slide 57: Sourcing Partner Summit
© es || ° e 7 ALO - a oo ‘SOURCING PARTNERSUMMIT cle a = ea Bow
Slide 58: Outlook
OUTLOOK
Slide 59: Focus on the core
FOCUS ON THE CORE ne DESIGN 4 DEVELOPMENT SOURCING MARKETING SALES DISTRIBUTION P Hh AN
Slide 60: In 2023, we will build the base for 2024 and 2025
IN 2023, WE WILL BUILD THE BASE FOR 2024 AND 2025
Slide 61: Risks and challenges in the environment
RISKS AND CHALLENGES IN Aull, ENVIRONMENT, "GEOPOLITICAL MACROECONOMIC. HIGH INVENTORY TENSIONS CHALLENGES LEVELS
Slide 62: 2023 outlook and Yeezy inventory impact
2023 WILL BEA OUTLOOK NEGATIVE IMPACT INCLUDED NOT SELLING NET SALES: -€1,200M Oh. Wi EXISTING YEEZY INVENTORY OPERATING PROFIT: -€500M Bey WRITE-OFF EXISTING YEEZY INVENTORY OPERATING PROFIT:-€500M Pee OPERATING PROFIT: -€200M
Slide 63: We have all the ingredients
WE HAVE ALL a RS WE'RE | ')' PERFORMING THE WAY WE SHOULD
Slide 64: Q&A
Slide 65: Investor Relations contact
+49 9132 84 2920 investor.relations@adidas.com