Adidas Ag · XETR:ADS
Adidas — adidas-Salomon — Shareholder Meeting (May 2005)
42 slides from Adidas's shareholder meeting presentation, May 4, 2005
Slide 1: adidas-Salomon AG Annual General Meeting 2005
adidas-Salomon AG Annual General Meeting 2005 Stadthalle Fürth May 4, 2005
Slide 2: Annual General Meeting 2005 - Herbert Hainer, Chairman and CEO
adidas-Salomon AG Annual General Meeting 2005 adidas-Salomon AG ANNUAL GENERAL MEETING 2005 HERBERT HAINER CHAIRMAN AND CEO 2
Slide 3: Agenda
adidas-Salomon AG Annual General Meeting 2005 Agenda • Key financial figures for 2004 • Highlights 2004 • Standort Germany • Outlook 2005/2006 3
Slide 4: Key Financial Figures 2004
adidas-Salomon AG Annual General Meeting 2005 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 4
Slide 5: Share Price Development 2004
adidas-Salomon AG Annual General Meeting 2005 Share Price Development 2004 Weekly Share Price Development in 20041) 1) Index: December 31, 2003 =100 140,00 adidas-Salomon DAX-30 130,00 120,00 Growth in percent 110,00 100,00 90,00 31.12.03 31.01.04 29.02.04 31.03.04 30.04.04 31.05.04 30.06.04 31.07.0
Slide 6: Dividend 2004: 30% increase to € 1.30 per share
adidas-Salomon AG Annual General Meeting 2005 Dividend 2004: 30% increase to € 1.30 per share 6
Slide 7: Share Buyback Program 2005
adidas-Salomon AG Annual General Meeting 2005 Share Buyback Program 2005: Share buyback of up to 10% of shares outstanding 7
Slide 8: Share Price Development 2005
adidas-Salomon AG Annual General Meeting 2005 Share Price Development 2005 Weekly Share Price Development in 20041) Index: December 31, 2003 = 100 1) 110,00 105,00 Growth in percent 100,00 adidas-Salomon DAX-30 95,00 90,00 01.01.2005 01.02.2005 01.03.2005 01.04.2005 01.05.2005 8
Slide 9: 2004 Sales Increased in All Regions
adidas-Salomon AG Annual General Meeting 2005 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% 9
Slide 10: Currency-Neutral Sales Increased in all Segments
adidas-Salomon AG Annual General Meeting 2005 Currency-Neutral Sales Increased in all Segments % of Total 8% 80 2% 10 5% 10 Total: Group 7% € 6.478 bn 100 0% 2% 4% 6% 8% 10% 10
Slide 11: Sports Highlights 2004
adidas-Salomon AG Annual General Meeting 2005 Sports Highlights 2004 11
Slide 12: Greece wins EURO 2004
adidas-Salomon AG Annual General Meeting 2005 Greece wins EURO 2004 12
Slide 13: VIDEO: Greece wins EURO 2004
adidas-Salomon AG Annual General Meeting 2005 VIDEO: Greece wins EURO 2004 13
Slide 14: Record Sales and Market Leadership in Football
adidas-Salomon AG Annual General Meeting 2005 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 14
Slide 15: Olympics 2004
adidas-Salomon AG Annual General Meeting 2005 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 15
Slide 16: VIDEO: Olympic Highlights
adidas-Salomon AG Annual General Meeting 2005 VIDEO: Olympic Highlights 16
Slide 17: Innovations 2004: adidas_1 and r7 quad Driver
adidas-Salomon AG Annual General Meeting 2005 Innovations 2004: adidas_1 und r7® quad Driver 17
Slide 18: adidas_1
adidas-Salomon AG Annual General Meeting 2005 adidas_1 • World’s first intelligent shoe • Sold out within a short time • Made headlines around the world 18
Slide 19: r7 quad Driver
adidas-Salomon AG Annual General Meeting 2005 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 19
Slide 20: Brand Campaign 2004: Impossible is Nothing
adidas-Salomon AG Annual General Meeting 2005 Brand Campaign 2004: Impossible is Nothing 20
Slide 21: VIDEO: Gimme the ball Commercial
adidas-Salomon AG Annual General Meeting 2005 VIDEO: Gimme the ball Commercial 21
Slide 22: David Beckham
adidas-Salomon AG Annual General Meeting 2005 David Beckham 22
Slide 23: Missy Elliott
adidas-Salomon AG Annual General Meeting 2005 Missy Elliott 23
Slide 24: adidas by Stella McCartney
adidas-Salomon AG Annual General Meeting 2005 adidas by Stella McCartney 24
Slide 25: T-Mac and Garnett
adidas-Salomon AG Annual General Meeting 2005 T-Mac and Garnett 25
Slide 26: Major League Soccer
adidas-Salomon AG Annual General Meeting 2005 Major League Soccer 26
Slide 27: Partnership Agreement with FIFA through to 2014
adidas-Salomon AG Annual General Meeting 2005 Partnership Agreement with FIFA through to 2014 27
Slide 28: Official Sportswear Partner of the Beijing Olympics in 2008
adidas-Salomon AG Annual General Meeting 2005 Official Sportswear Partner of the Beijing Olympics in 2008 28
Slide 29: FC Chelsea – Partnership Starting 2006/2007
adidas-Salomon AG Annual General Meeting 2005 FC Chelsea – Partnership Starting 2006/2007 29
Slide 30: 2006 FIFA World Cup™
adidas-Salomon AG Annual General Meeting 2005 2006 FIFA World Cup™ • adidas is market leader in football • Target 2006: sales of more than € 1 billion with football products 30
Slide 31: 2006 FIFA World Cup™
adidas-Salomon AG Annual General Meeting 2005 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 31
Slide 32: Employees in Germany
adidas-Salomon AG Annual General Meeting 2005 Employees in Germany • Around 2,600 employees in Germany • 2004: almost 300 new jobs created • 2005: another 150 to 200 jobs planned 32
Slide 33: Scheinfeld Production
adidas-Salomon AG Annual General Meeting 2005 Scheinfeld Production 33
Slide 34: World of Sports
adidas-Salomon AG Annual General Meeting 2005 World of Sports • Investments of € 30 million • June 2005: Opening of our football stadium • Spring 2006: Opening of Adi Dassler Brand Center 34
Slide 35: First Quarter 2005
adidas-Salomon AG Annual General Meeting 2005 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 35
Slide 36: Sale of Salomon to Amer Sports Corporation
adidas-Salomon AG Annual General Meeting 2005 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 36
Slide 37: Reasons for the Sale
adidas-Salomon AG Annual General Meeting 2005 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 37
Slide 38: Timelines
adidas-Salomon AG Annual General Meeting 2005 Timelines • Approval of antitrust authorities • Transaction closing by end of Q3 2005 • Company‘s name for the time being “adidas-Salomon AG”, will later be changed to “adidas AG” 38
Slide 39: Use of Proceeds
adidas-Salomon AG Annual General Meeting 2005 Use of Proceeds • Strengthen core competencies • Share buyback program 39
Slide 40: Targets for 2005
adidas-Salomon AG Annual General Meeting 2005 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% 40
Slide 41: Summary
adidas-Salomon AG Annual General Meeting 2005 Summary • 2004 was a record year • Successful Q1 2005 • Sale of Salomon strengthens our core competencies • Excellent market position 41
Slide 42: Thank You!
adidas-Salomon AG Annual General Meeting 2005 Thank You! 42