Adidas Ag · XETR:ADS
Adidas — Adidas Ag Ord — Q2 2023 Earnings Presentation
78 slides from Adidas's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Results
Slide 2: Women's football national teams and athletes
Argentina, Colombia, Such as Mary Fowler, Germany, Japan, Alessia Russo, Lena Spain, Sweden, Costa Oberdorf, Wendie Rica, Italy, Jamaica & Renard, Jennifer the Philippines Hermoso, Trinity Rodman…
Slide 3: Play until they can't look away
play until they can't look away
Slide 4: Trinity Rodman
y ’ TRINITY RODMAN
Slide 5: Segment Y-0-Y
SEGMENTY-0-Y
Slide 6: Challenges in North America
CHALLENGES IN NORTH AMERICA at. adidas
Slide 7: Bienvenido a Miami
x\N BIENVENIDO A WIAMI
Slide 8: Lionel Messi Contract Renewal
Slide 9: Exhibit Select women's basketball
EXHIBIT SELECT DESIGNED SPECIFICALLY FOR OMEN'S BASKETBAL EXHIBIT SELECT CAMPAIGN _AND ERIC ALIYAH BOSTON WITH HAILEY VAN LITH, CANDACE PARKER, WHEELER JOINS ADIDAS BASKETBALL CHELSEA GRAY, ALYSHA CLARK...
Slide 10: Basketball athletes join adidas
GRADEY DICK & DONOVAN JALEN HOOD-SCHIFING JAMES HARDEN MITCHELL TRAE YOUNG JOIN ADIDAS BASKETBALL
Slide 11: Fear of God
adidas FEAR oF 60D
Slide 12: Segment Y-0-Y
SEGMENTY-0-Y
Slide 13: Manchester United Extension
Slide 14: AS Roma, Nottingham Forest, Maccabi Haifa
BG AS ROMA NOTTINGHAM FOREST | MACCABI HAIFA
Slide 15: India cricket team plays first game in adidas kit
——e | INDIA CRICKET TEAM PLAYS & Wins ” FIRST GAME IN ADIDAS KIT — ~ il
Slide 16: Segment Y-0-Y
SEGMENTY-0-Y
Slide 17: Ma Sichun Joins adidas Family
Slide 18: Messi & AFA in China
Slide 19: China Athletics Street Tour
Slide 20: Mobile Skatepark
Slide 21: Terrex Chongli 168 Ultra Trail
Slide 22: Trade Meeting in Wuhan
Slide 23: New High-Tech & Sustainable Distribution Center in Suzhou
Slide 24: Net Sales Growth by Market Segment Y-0-Y
NET SALES GROWTH BY MARKET SEGMENT Y-0-Y NORTH AMERICA EMEA GREATER CHINA 0 0 0 16 Ho | 8% Th | 2% “lot | ¥ +30% | +39%
Slide 25: ET HAESGL ete D
ET HAESGL ete D
Slide 26: Jamaica
yor D JAMAICA eile = ee . a ¢ d ~ = Is ) 7
Slide 27: Anitta x UEFA Champions League Final
ANITTA X UEFA CHAMPIONS LEAGUE FINAL BIZARRAP TEE
Slide 28: Women's Shop-in-Shop, Colombia
WOMEN’S SHOP-IN-SHOP, COLOMBIA
Slide 29: Net Sales Growth by Market Segment Y-0-Y
NET SALES GROWTH BY MARKET SEGMENT Y-0-Y NORTH AMERICA EMEA GREATER CHINA 16% | 1 IM | 2 0 8% TM 2% 16% pu Mh LATIN AMERICA +119 +30%|+39% a
Slide 30: APAC Hub with 3 countries & 2 clusters
APAC Hub with 3 countries & 2 clusters
Slide 31: Standalone Markets
STANDALONE MARKETS JAPAN BESASOUTH KORE!
Slide 32: Moving to Emerging Markets
AS OF)". MOVING TO EMERGING MARKETS... » Oe @ SENG p>. | DOS THAILAND oh gy @ PACIFIC? . HEADQUARTERED IN DUBAI SINGAPORE, MALAYSIA IETHAM. PHILIPPINES & INDONESIA WITH CAMBODIA LAOS AND MYANMAR MANAGED THROUGH SEA. 2 AUSTRALIA NEW ZEALAND WITH PAPUA NEW GUINEA AND FU MANAGED THROUGH PAC
Slide 33: Net Sales Growth by Market Segment Y-0-Y
NET SALES GROWTH BY MARKET SEGMENT Y-0-Y mony AMERICA EMEA GREATER CHINA 16% | -18% -% | +2% #16% | «1% ols LATIN AMERICA + +1] +30%| «39% a Al Ovo
Slide 34: Q2 2023 Revenue Growth by Market Segment
Q2 2023 REVENUE GROWTH BY MARKET SEGMENT - NORTH AMERICA Bath, EMEA BL, 0 0 “16% =| -20 “Yo | -2 LATIN AMERICA, £X¢t. YEEZY +50% +29% AT OM6, GREATER CHINA +16% i ecin i 1% 5% = Wi EXCL. YEEZY 18%
Slide 35: Q2 2023 Net Sales Growth by Channel
Q2 2023 NET SALES GROWTH BY 19% OWN RETAIL E-COM +14% Ad -—— DIC 2th Bt 56% ™ WHOLESALE 02 2023 CHANNEL GROWTH adidas RESULTS REFLECT CONTINUING OPERATIONS (EXCL. REEBOK), CURRENCY-NEUTRAL NET SALES DEVELOPMENT. 02 2023 CHANNEL SPLIT
Slide 36: Q2 2023 Net Sales Growth by Channel
Q2 2023 NET SALES GROWTH BY +21% OWN RETAIL 39% -—— DIC St 7 61% ™ WHOLESALE 02 2023 CHANNEL GROWTH adidas RESULTS REFLECT CONTINUING OPERATIONS (EXCL. REEBOK), CURRENCY-NEUTRAL NET SALES DEVELOPMENT. 02 2023 CHANNEL SPLIT
Slide 37: Home of Sport Store in Durban, South Africa
HAA NREL oo : HOME OF SPORT STORE IN DURBAN, SOUTH AFRICA LARGEST ADIDAS STORE IN AFRICA
Slide 38: Q2 2023 Net Sales Growth by Product Division
Q2 2023 NET SALES GROWTH BY #1 FOOTWEAR 48% APPAREL ACCESSORIES 8% ACCESSORIES a1Wll 98% -— FOOTWEAR 34% APPAREL —s 02 2023 PRODUCT DIVISION GROWTH adidas 02 2023 PRODUCT DIVISION SPLIT
Slide 39: Q2 2023 Net Sales Growth by Category
Q2 2023 NET SALES GROWTH Bicdie TRAINING 100R\, Hf Us spots EXCL. NAM adidas
Slide 40: Club and national team championships
Le ‘ : = : 1 zi ey ® Xi BAYERN MUNICH WOMEN & MEN AL-AHLY GERMAN CHAMPIONSHIP 2023 IITH AFRICAN CHAMPIONS LEAGUE TITLE MEXICO ITALY U19 38TH PORTUGUESE LEAGUE TITLE GOLD CUP 2023 EUROPEAN CHAMPIONSHIP
Slide 41: Bayern Munich, Juventus, Manchester United
ae, BAYERN MUNICH JUVENTUS MANCHESTER UNITED
Slide 42: Real Madrid, Arsenal, Juventus
' s REAL MADRID 3 » ARSENAL JUVENTUS
Slide 43: Football Boots
FOOTBALL BOOTS CRAZYFAST
Slide 44: Launch of all new Adizero Boston & Adios
LAUNCH ALL NEW, ADIZERO BOSTON 12 & ADIOS 8 ; | ' ( ‘ wepsuge See ADIZERO ADIOS 8
Slide 45: Marathon wins in Rio and Prague
i ) TAb| ZINASH DEBEBE ALEXANDER MUTISO RIO MARATHON PRAGUE MARATHON — JOSPHAT KIPROTICH <> . wee WORKENESH EDESA RIO MARATHON PRAGUE MARATHON
Slide 46: Asian Athletics Championship 100m gold
JYOTHI YARRAJI ANNA HALL 100M GOLD AT ASIAN CSE ee vy ATHLETICS CHAMPIONSHIP A
Slide 47: Slide 47
Slide 48: Beijing Flagship Store, Los Angeles
—} mf i] | | | | ' . a | | | |e hl hail Ww iD = ~~ oe be i BEIJING FLAGSHIP STORE HOW LIVE LOS ANGELES
Slide 49: Terrex ISPO Award
TERREX ba 4 ISPO AWARD ~ TERREX XPERIOR LIGHT TERREX TECHROCK REVERSIBLE WINDWEAVE JACKET TERREX XPLORIC WIND JACKET HOODED FLEECE JACKET
Slide 50: Patrick Mahomes takes home ESPY Award
PATRICK MAHOMES TAKES HOME ESPY AWARD f *
Slide 51: Slide 51
Slide 52: Silver for Türkiye
SILVER FOR ~— GOLD-FOR TURKIYE e " y ~ »
Slide 53: Q2 2023 Net Sales Growth by Category - Lifestyle
Q2 2023 NET SALES GROWTH BY CATEGORY - LIFESTYLE ORIGINALS dicloss —_ PRELIMINARY, ROUNDED V-0-Y CN. NET SALE NUMBERS
Slide 54: Wales Bonner Fashion Show
5 WALES BONNER FASHION SHOW ee SAMBA CAFE YOMIF KEJELCHA TAMIRAT TOLA ADERA
Slide 55: Yeezy Drop
EEZY DROP 2 YEEZY AVAILABLE FROM AUGUST 2 FOLLOW FOR UPDATES
Slide 56: Great sell-through for Spezial
GREAT SELL-THROUGH FOR |) =) )\).\5': Ky SPEZIAL = i 7>
Slide 57: Seoul, Korea Campus
GREAT SELL-THROUGH FOR) = \\)).\« = ee = SPEZIAL Aff Ee ~— CAMPU
Slide 58: Success: adicolor 70s
al a SUCCESS whe =v adidas Do it bright in adicolor 70s DISCOVER MORE
Slide 59: Terrace, 70s Running: The Opportunity
70S RUNNING THE OPPORTUNITY TERRACE 70S RUNNING 70S / 80S 70S / 80S FOOTBALL CULTURE EXTEND 70S AESTHETIC T-TOE SPORTING NOSTALGIA
Slide 60: We are worn again by the right / most relevant consumers
WE ARE WORN AGAIN BY THE RIGHT / MOST RELEVANT CONSUMERS
Slide 61: Slide 61
Slide 62: Q2 Financial Results
Pad PAJFINANCIAL RESULTS EIN MILLIONS 02 2023 022022 y-0-Y NET SALES 5,343 <—| treat 5,596 el GROSS PROFIT 2,719 ¢—| INCL. YEEZY 2,815 3% % OF NET SALES 50.9% OF -2PP 503th 0.6PP adidas: ‘FROM CONTINUING OPERATIONS.
Slide 63: Q2 2023 Gross Margin Development Decomposed
2 2023 (5 )).\\\5) DEVELOPMENT DECOMPOSED SUPPLY CHAIN COSTS DISCOUNTS INVENTORY ALLOWANCE mp | Ot! S| | | ee +0.6PP YEEZY EFFECT (Mimi GROSS MARGIN 022022 GROSS MARGIN GROSS MARGIN 02 2023 02 2025 EXCL. YEEZY
Slide 64: Q1 2023 Gross Margin Development Decomposed
Q170 2 2023!) ))).\\\5 |) DEVELOPMENT DECOMPOSED } DISCOUNTS | INVENTORY ALLOWANCE we | I al +6]PP GROSS MARGIN GROSS MARGIN 012023 02 2025
Slide 65: Q2 Financial Results
Pad PAJFINANCIAL RESULTS EIN MILLIONS 02 2023 022022 y-0-Y NET SALES 5,343 e— INCL. VEETY 5,596 soe GROSS PROFIT 2,719 4 | INCL. YEEZY 2,815 3% % OF NET SALES 50.9% OF -2PP 50.3% 0.6PP MARKETING AND POS EXPENSES 617 663 7% % OF NET SALES 15% 118% -0.3PP AO OF-£160 ‘ See 1965 et inaeeamoncorcns| BSB
Slide 66: Balance Sheet
BALANCE SHEETL.U3 ec MLIONS 30 JUN 2023 30 JUN 2022 DEVIATION INVENTORIES 5,540 5,483 1% | +6% C.N.
Slide 67: Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23
Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23
Slide 68: Balance Sheet
BALANCE SHEETL.U3 eINMLLONS 30 JUN 2023 30 JUN 2022 DEVIATION INVENTORIES 5,540 5,483 Mo] +6% CN. ACCOUNTS RECEIVABLE 2,567 3,022 15%] -lI% C.N. ACCOUNTS PAYABLE 2,210 3,314 33% | -33% ON. OPERATING WORKING CAPITAL 5,896 5191 14% |+22% CN. CASH AND CASH EQUIVALENTS 993 1,578 “37% 2
Slide 69: FY 2023 Outlook Updated
FY 2023)! UPDATED OLD NEW RATIONALE soe CURRENCY-NEUTRAL P MID-SINGLE-DIGIT DECLINE SLIGHTLY BETTER THAN NET SALES EXPECTED ADIDAS BUSINESS INHI UNDERLYING: Tan DPERATING PROFIT, salut) =-E450\l | — LOWER POTENTIAL WRITE-OFF €400M OF YEEZY INVENTORY (-€100M) REPORTED a IMPACT FROM FIRST YEEZY OPERAT
Slide 70: Slide 70
Slide 71: Special Olympics, Berlin 2025
SPECIAL OLYMPICS, BERLIN 2025
Slide 72: adidas accrued €100M for donations
ADIDAS ACCRUED € 100M FOR DONATIONS
Slide 73: Stand up against all hate
STAND UP AGAINST ALL HAT National PTA ADL. everychild.onevoic naacr Hifi 7a stTANDUP A q 4 TO JEWISH t x ee on HATE : . ep th AND MANY MORE
Slide 74: Germany national football team, Arsenal, Special Olympics Germany
AG mi IY, eo aw GERMANY NATIONA r ' a sso | FOOTBALL TEAM he ‘ ais, SPECIAL OLYMPICS @ ARSENAL F.C. ge ESS GERMANY
Slide 75: Lina Magull & Melanie Leupolz, Mikaela Shiffrin
LINA MAGULL & MELANIE LEUPOLZ MIKAELA SHIFFRIN » FANFEST >
Slide 76: Board Update
ae ana Sra BOARD UPD a
Slide 77: Welcome,
WELCOME,
Slide 78: Q&A