Adidas Ag · XETR:ADS
Adidas — Adidas Ag Ord — Q3 2023 Earnings Presentation
79 slides from Adidas's earnings presentation, Nov 8, 2023
Slide 1: Q3 2023 Results
Slide 2: World's Best Employers
World's Best Employers #12 #] OUT OF 700 IN SPORTS INDUSTRY
Slide 3: Global Week of Inclusion
Slide 4: adidas Runners Restart in Ukraine
ADIDAS RUNNERS RESTART IN UKRAINE
Slide 5: SOS Kinderdorfer Weltweit
SOS a 6 ff ~~ A KINDERDORFER WELTWEIT . 7 iY
Slide 6: Trending in the Right Direction
TRENDING IN THE RIGHT DIRECTION BOTTOM AND TOP LINE BETTER THAN EXPECTED 2 FASTER DECISION MAKING 5 ESPECIALLY FOR FW24 4 GOOD SELL-THROUGH OF NEW PRODUCT 5 AHEAD OF TARGET adidas
Slide 7: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY-NEUTRAL NET SALES DEVELOPMENT.
Slide 8: Thank You, Rupert Campbell
THANK YOU, RUPERT CAMPBELL! CHIEF SALES OFFICER + INTERIM LEAD NORTH AMERICA PRESIDENT ADIDAS. NORTH AMERICA
Slide 9: Continued Challenges in North America
CONTINUED CHALLENGES IN NORTH AMERICA at. SALE adidas
Slide 10: Sharpening Our North America Focus - adidas LA Office
SHARPENING OUR NORTH AMERICA FOCUS - ADIDAS LA OFFICE AMERICAN STREET CULTURE BASKETBALL NEW PARTNERSHIPS
Slide 11: North America Activations
SOHO NYC MONCLER LAUNCH 5TH AVENUE NYC TERRACE LAUNCH 51 AVENUE NYC MLS SEASON KICK-OFF ie MIAMI LINCOLN ROAD MESSI POP-UP ORLANDO INTERNATIONAL ve fi “BAY PLAZA NYC CONCEPT STORE ‘SAN CLEMENTE, CA “FACTORY OUTLET
Slide 12: Inter Miami Wins League Cup
INTER MIAMI WINS LEAGUE CUP
Slide 13: Record Breaking Volleyball Day in Nebraska
RECORD BREAKING VOLLEYBALL DAY IN NEBRASKA BROKE THE ATTENDANCE RECORD FOR ANY WOMEN’S SPO EVENT IN GLOBAL HISTORY WITH: 92,003 PARTICIPANTS
Slide 14: Unveil Mahomes I Impact FLX
UNVEIL MAHOMES I IMPACT FLX
Slide 15: snes
om, snes I A ‘ — — = A eS
Slide 16: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY-NEUTRAL NET SALES DEVELOPMENT.
Slide 17: Battle of the Socials Europe
BATTLE OF THE SOCIALS EUROPE INSTAGRAM, TIKTOK, TWITCH AND YOUTUBE
Slide 18: Asia Cup
PIONS OF ASIA CUP w +e jl FI COUNCIL Wicca me $Puctiaw, — coowos A» pe EH ~ SUPEK 1 8 a at #ASIACUPZU23" ASIAN CRICKET COUNCIL
Slide 19: Cricket World Cup
CRICKET WORLD CUP ee; 3 KA DREAM
Slide 20: Saudi Arabia Office Opening
SAUDI ARABIA OFFICE OPENING” ty
Slide 21: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY-NEUTRAL NET SALES DEVELOPMENT.
Slide 22: Concert with Chinese Federation of Literature and Arts Circle
€ _ Sani CONCERT WITH CHINESE FEDERATION OF LITERATURE AND ARTS CIRCLE pig halt
Slide 23: Beijing SLT Brand Center
BEIJING SLT BRAND CENTER EDISON CHEN PARTNERSHIP LAUNCH “SHANGHAI FLAGSHIP STORE ORIGINALS CAMPAIGN BEIJING § ST BRAND CENTER ONE WINTER Pesulah CHONGQING 81 BRAND CENTER __ ONE WINTER CAMPAIGN “BEIJING APM BRAND CENTER “ONE WINTER CAMPAIGN
Slide 24: Huopin Donovan Mitchell Grassroots Program
HUOPIN DONOVAN MITCHELL GRASSROOTS PROGRAM — CHINA TOUR aS “JAMES HARDEN. CHINA TOUR
Slide 25: China Athletes and Teams
WOMEN VOLLEYBALL CHINA TENNIS TEAM 9- TIMES ASIAN CHAMPION IN’A ROW 2 GOLD i SILVER {ES ; \ ; S oN j Ds XIEZHENYE LIU QINGY! ZHENG NINALI BEACH VOLLEYBALL TEAMS GOLD 100M, FIRST EVER BREAK GOLD 4X 100M RELAY GOLD INHEPTATHLON DANCE MEDAL 1 GOLD, | SILVER, | BRONZE
Slide 26: China National Breakdance Contest
Slide 27: Grand Opening for Su Zhou Distribution Center
Slide 28: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY-NEUTRAL NET SALES DEVELOPMENT.
Slide 29: Latin America Marathons
HL MARATEN OE LA WD BE MEXICO feicey Le at) A MEXICO CITY BUENOS AIRES AUGUST i AUGUST co) % we LIMA RIO BOGOTA MAY JUNE JULY
Slide 30: Costa Rica, San Jose
~ COSTARICA, SAN JOSE
Slide 31: Net Sales Growth
NET SALES GROWTH B ‘CURRENCY-NEUTRAL NET SALES DEVELOPMENT.
Slide 32: Asia-Pacific Stores and Originals Campaign
BA ee lees = SHIP STORE, SEOUL ORIGINALS CAMPAIGN ww R i ; sole ef st | 4 : A _) CAT STREET STORE, TOKYO MYEORGDONG ORIGINALS CONCEPT STORE, SEOUL | HIKARI SHIBATA COLLABORATION
Slide 33: Net Sales Growth by Market Segment Y-o-Y
NET SALES GROWTH BY MARKET SEGMENT Y-0-Y NORTH AMERICA Wh 4 TB LATIN AMERICA +13% |+29% EMEA +2%p| 62% bth | 3% [osaoes] [roams | ASIA-PACIFIC +7Yo| «10% Al +170 (¥ 110 Oo)
Slide 34: Net Sales Growth by Market Segment
03 2025 NET SALES GROWTH BY MARKET SEGMENT - NORTH AMERICA ith EMEA EXCL. YEEZY -9% 10% #24 | «2% LATIN AMERICA, Xt. YEEZY 15% 12% Al #M%, GREATER CHINA exci. YEEZY 6% | sid ASIA-PACIFIC... FXcL. YEEZY +1% 5%
Slide 35: Net Sales Growth by Channel
03 2025 NET SALES GROWTH BY WHOLESALE (INCL. FRANCHISE) 10% OWN RETAIL 37% -—— DIC gg lO Bt 63% ™ WHOLESALE 03 2025 CHANNEL GROWTH adidas 03 2023 CHANNEL SPLIT
Slide 36: Chief Digital Officer
CHIEF DIGITAL OFFICER SVP GLOBAL DIGITAL & ECOMMERCE
Slide 37: Net Sales Growth by Product Division
03 2025 NET SALES GROWTH BY 0 6% +6 ht 0 ACCESSORIES a1Wll FOOTWEAR 580, 0 36% -— FOOTWEAR APPAREL —s APPAREL 03 2023 PRODUCT DIVISION GROWTH 03 2023 PRODUCT DIVISION SPLIT adidas
Slide 38: Net Sales Growth Sports Categories
03 NET SALES GROWTH 7 sprciauist | | SPORTS adidas CCURRENCY-NEUTRAL NET SALES DEVELOPMENT.
Slide 39: Women's World Cup Highlights
WOMEN’S WORLD ovpgoes ee Wi MOST WATCHED FEMALE SPORT EVENT IN HISTORY NEARLY 2M TICKETS SOLD (>70% VS 2019) LMA PARALLUELO MARY EARPS BEST YOUNG PLAYER GOLDEN GLOVE ADIDAS: THE MOST TALKED ABOUT BRAND AT THE WORLD CUP 418 QUARTER FINAL TEAMS WORE ADIDAS Ay HINATA MIYAZAWA 72X FEDERATION JERSEY SALE
Slide 40: Arsenal Women x Stella McCartney
ARSENAL WOMEN X STELLA MCCARTNEY
Slide 41: Bugatti x adidas
BUGATTI X ADIDAS
Slide 42: CT
CT
Slide 43: Lionel Messi and Jude Bellingham
LIONEL MESSI ¥ JUDE BELLINGHAM 8TH BALLON D'OR KOPA TROPHY
Slide 44: Running Records
THD SAn very AMANAL PETROS GERMAN RECORD 2:04:58 TIGIST ASSEFA WORLD RECORD 2:11:53
Slide 45: Running Wins and Records
” TAMIRATTOLA = PERES JEPCHIRCHIR | CARLOS MAYO WINS NEW YORK CITY MARATHON WITH NEW _.HALFMARATHON,(I:07:25) ATROAD RUNNING — RESET SPAIN’S NATIONAL HALFMARATHON BY 13 SECONDS (59:39) COURSE RECORD TIME (2:04:58) CHAMPIONSHIPS IN RIGA IN VALENCIA
Slide 46: Marathon Results
ADANE KEBEDE GEBRE (2:1126) & JOSHUA BELET TSIGE HAILESLASE ABREHA (2:24:15) 2:04:18 AT AMS AT CAPE TOWN MARATHON __- MARATHON ¥ . &- \ We ee “aaa ABHISHEKPAL — eivig eHEROI (20920) &BUZEDIRIBA (2751) VIBIANCHEPKIRUI ATROAD RUNNING CHAMPIONSHIPS ‘HALEMARATHN AT TORONTO MARATHON 2-2157 AT BEIJING MAR
Slide 47: World Record
ne — WORLD RECORD MEN'S sev ue (3.5615) TWO WORLD R ROSIN aha 25, 1OK: 29:24) ATROAD RUNNING CHAMPIONSHIPS IN RIGA |
Slide 48: Athletics Gold Medals
MARILEIDY PAULINO GOLD - 400M — AMANE BERISO SHANKULE GRANT HOLLOWAY GOLD - MARATHON GOLD - 100M HURDLES a AN DANIELLE WILLIAMS GOLD - 100M HURDLES MILTIADIS TENTOGLOU GOLD - 100M, 200M, GOLD - 400M AXIOOM RELAY GOLD - 800M GOLD - LONG JUMP ANTONIO WATSON MARCO AROP
Slide 49: Terrex Agravic Speed Ultra
TERREX AGRAVIC SPEED ULTRA WESTERN SKS on" OLYMP! TOM EVANS WESTERN STATES trailrunner a The Eastest Trail Shoes In Chamonix TON! MCCANN ore
Slide 50: Trail Running Results
ue ee EKATERINA MITYAEVA KIM SCHREIBE A ea he ae TIQKM-IST WOMEN, _ G3KMRACE- IST WOMEN, 9. 3RD OVERALL 13:00:23 3D OVERALL 05:38:29
Slide 51: Siya Kolisi and South Africa
fame )\\\\ SIYA KOLISISTEERS SOUTH AFRICA TOR ’ Ss _- RECOVERY, 9 MONTHS WORLD CHAMPIONS IN 6. K\\
Slide 52: All Blacks Legacy Continues
ALLBLACKSLEGACY —_— CONTINUES -~ GAMES 15) N LEGACIES
Slide 53: September 2023 Net Sales Growth
03 SEPTEMBER 2023 NET SALES GROWTH ORIGINALS, BASKETBALL, PARTNERSHIPS & SKATEBOARDING adidas
Slide 54: Overtime Elite Signs Multi-Year Deal with adidas
v ” eal ” OVERTIME ELITE SIGNS MULTI-¥EAR DEALWITH ADIDAS ° , ie aN ° ma , R\N * m\Y . a ° x \\ rm 7 ay m J ooues'p : a \Y i A
Slide 55: Anthony Edwards Signature Shoe AE 1
Slide 56: We Gave the World an Original
WE GAVE THE WORLD AN ORIGINAL nha YOU GAVE US A THOUSAND BACK =e — === ORIGINALS ORIGINALS == 0 NALS. . “ ( ae e Tae OR Am , Fe Na
Slide 57: Originals Campaign Around the World
—.- ORIGINALS ORCA = oo ee fe of aR ya THe CAMPAIGN TO LIFE AROUND THE WORLD —_—— —GREATERCHINA ale EUROPE
Slide 58: Moncler Genius Launch
Slide 59: Originals x Korn
Slide 60: Edison Chen x Originals
EDISON CHEN X ORIGINALS
Slide 61: CLOT x adidas
CLOT X ADIDAS NEIGHBORHOOD SUPERSTAR
Slide 62: Samba Is the Shoe of the Year
2023 FOOTWEAR NEWS ACHIEVEMENT AWARDS: SAMBA IS THE SHOE OF THE YEAR
Slide 63: Footwear Franchises
F50 Z.N.E SAMBA CAMPUS GAZELLE H. SPEZIAL SUPERSTAR
Slide 64: Lifestyle Running SL 72
Slide 65: adicolor
Slide 66: Yeezy
ESSN Css YEEZY 4@s &, i»
Slide 67: Financial Update
Slide 68: Q3 Financial Results
PAIS IFINANGIAL RESULTS EIN MILLIONS 03 2023 03 2022 y-0-Y NET SALES 5.999 e— Tsar 6,408 eh GROSS PROFIT 2,955 EXCL, YEEZY 3,146 -6% % OF NET SALES 49.3 e—{__ ~48.0% 49.1% +0.20P MARKETING AND POS EXPENSES 644 691 7% % OF NET SALES 10.7% 10.8% -0.0PP AO OF-€110 r OOHEXPENSES 1926 ce -COOM ONE-OFF CO
Slide 69: Gross Margin Development
03 2023's )).\\ ) DEVELOPMENT ee [2] _ P BUSINESS MIX EI [a] 49.3% a | . Ea PS Tsconis TT oh on GROSS MARGIN GROSS MARGIN GROSS MARGIN 03 2022 03 2025 03 2025 EXCL. YEEZY
Slide 70: Gross Margin Development Excl. Yeezy
0270052025 5) 0's) /.\.\0))) DEVELOPMENT 1 BUSINESS MIKA} a ae (>|: DRIVER IMPACTS EXCL. YEEZY GROSS MARGIN GROSS MARGIN 02 2023 03 2025
Slide 71: Balance Sheet
BALANCE SHEET: €IN MILLIONS INVENTORIES ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE OPERATING WORKING CAPITAL CASH AND CASH EQUIVALENTS 2 30 SEP 2023 4,849 2721 2,015 5,557 954 30 SEP 2022 6,315 3,240 3,554 6,201 806 DEVIATION -23% | -19%C.N. 16% |-12% C.N. 40% |-39% C.N. 10% |-4% C.N. 18%
Slide 72: Inventory Development
(8/000) DEVELOPMENT meg LaNENVON . 5] = cm * N 03 2022 042022 012023 022023 03 2023 LM, adidas ‘AS REPORTED. ABSOLUTE INVENTORY POSITION AT THE END OF THE QUARTER.
Slide 73: FY 2023 Outlook Updated
FY 2023 |)))/ 11") UPDATED INITIAL PREVIOUS UPDATE CURRENT FEBRUARY 9 JULY 24 OCTOBER I7 NET SALES GROWTH HIGH-SINGLE-DIGIT MID-SINGLE-DIGIT CURRENCY-NEUTRAL DECLINE DECLINE OPERATING PROFIT BREAK-EVEN BREAK-EVEN UNDERLYING OPERATING PROFIT - € 700 MILLION - €450 MILLION REPORTED
Slide 74: Operating Profit Outlook
12 #1) S)0PERATING PROFIT OUTLOO INITIAL PREVIOUS UPDATE CURRENT 0 100 | oe soo | ® -100 REPORTED 0 @ OPERATING ® PROFIT 100 € IN MILLIONS 150 @ “ @) Yeezy Drops -700 ® Less Yeezy Write-Off © Better Underlying Business
Slide 75: gi 1B
gi 1B
Slide 76: Upcoming Product Launches
al TERREX AGRAVIC SPEED ULTRA ADIZERO ADIOS PRO EVO1 X CRAZYFAST STRUNG - NOV 10
Slide 77: Euro Cup 2024 Match Ball
i> EURO CUP 2024 MATCH BALL » | + Tp aes SIRAJ’ F {0 al m KULDEEP | ‘DEJA 7 ; 9 2 | 4 d | \ \ | f FEAR OF GOD CRICKET WORLD CUP IN INDIA
Slide 78: We Will Again Be the Best Sports Brand
Slide 79: Q&A