Adidas Ag · XETR:ADS
Adidas — Investor Day (2002)
16 slides from Adidas's investor day presentation, 2002
Slide 1: Strategy Europe
Strategy Europe Roland Auschel Head of Europe 1 Investor Day 2002 - Strategy Europe
Slide 2: Investor Day 2002 - Strategy Europe
2 Investor Day 2002 - Strategy Europe
Slide 3: adidas in Europe
adidas in Europe • Group Home Base – 50% of Group sales – Market dominance • Key Assets – Football – Apparel – Heritage division / fashion market – People / trade relationships 3 Investor Day 2002 - Strategy Europe
Slide 4: adidas in Europe: Key Challenges ahead
adidas in Europe Key Challenges ahead Market – Urban youth target – Women – Future Potential on Fashion/Leisure Market Organization - Harmonization - Complexity 4 Investor Day 2002 - Strategy Europe
Slide 5: Investor Day 2002 - Strategy Europe
5 Investor Day 2002 - Strategy Europe
Slide 6: What is "WiE" about?
What is “WiE” about? Strategic Growth Initiatives Reducing Costs Har- Elevating monization Growth & Complexity Base Reduction 6 Investor Day 2002 - Strategy Europe
Slide 7: Growth and Complexity
Growth and Complexity “PIONEER“ “CHASING“ Growth Growth Creating complexity Limited complexity - Increased SKUs and competition - Systems & processes - Eurologistics, ... Net sales Operating profit External Factors: - Increasing competitive environment - Trade evolution - Consumer behavior evolution
Slide 8: Growth and complexity
Growth and complexity “PIONEER“ “CHASING“ “REJUVENATED Growth Growth Long-term Growth“ Creating complexity Limited complexity - Increased SKUs Reduce complexity and competition - Systems & processes “Winning in Europe“ - Eurologistics, ... Net sales Operating profit External Factors: - Increasing co
Slide 9: Key Strategic Pillars
Key Strategic Pillars • Area Formation • Area Design • Product Range Harmonization • Logistics Concept 9 Investor Day 2002 - Strategy Europe
Slide 10: Area Formation
Area Formation KEY AREA OF ACTION KEY STRATEGY EXPECTED BENEFITS • Reduce total operating overhead > € 30 million Har- (cumulative 2003 - 2006) monization - administrative cost & Complexity - organization alignment Reduction Reducing Costs • Area North (UK, Benelux) • Area Central (D, A, CH, PL, CZ/
Slide 11: Area Design
Area Design KEY AREA OF ACTION KEY STRATEGY EXPECTED BENEFITS • Area organized as a single market • More responsive and Har- effective organization monization • Similar organization structures & Complexity across Areas • Provide all markets Reduction with higher starting • Common systems and process
Slide 12: Range Harmonization
Range Harmonization KEY AREA OF ACTION KEY STRATEGY EXPECTED BENEFITS Har- • 50% articles common to all Areas in • Total reduction of monization & Europe from Spring 2002 25% common no. SKUs by >= 20% Complexity Reduction 2nd half 2003 across Europe Reducing Costs • Increased offer for all markets •
Slide 13: Logistics Concept
Logistics Concept KEY AREA OF ACTION KEY STRATEGY EXPECTED BENEFITS • Create integrated supply chain from • Reduced lead time from Har- sourcing to customer sourcing to markets monization & Complexity • Further consolidate warehouses • Responsive total supply Reduction in Europe chain from sourcing
Slide 14: "Winning in Europe"
“Winning in Europe” Strategic Growth Initiatives Reducing Key Performance Indicators Costs Har- Elevating • Reduce SG&A by > € 30 million monization Growth & (cumulative 2003 - 2006) Complexity Base Reduction • Reduce total no. of SKUs >= 20 % Range Area Area Harmoni- Logistic • Area Formation Forma
Slide 15: adidas Europe
adidas Europe • adidas home market • Market dominance • “Winning in Europe“ as new organizational foundation • Leaner and faster • Base for growth strategies to outgrow competition 15 Investor Day 2002 - Strategy Europe
Slide 16: Investor Day 2002 - Strategy Europe
16 Investor Day 2002 - Strategy Europe