Adidas Ag · XETR:ADS
Adidas — Adidas Ag Ord — Q1 2025 Earnings Presentation
61 slides from Adidas's earnings presentation, Apr 29, 2025
Slide 1: April 29, 2025
) _APRIL 29, 2025 é ying WS senean S= [ |
Slide 2: Bad Bunny x Adidas Ballerina
Thanks to the Bad Bunny x Adidas Ballerina, dance sneakers are about to go boom ——— The Internet's Most Anticinated Sneaker Drop Is Here on his hands °~ | Benito's New Adidas Collab Is Gold, Gender- \ Bending, and Built to Dance Searches for “Ballet” are up 442% YoY on StockX F 4. UE:
Slide 3: What a (Fast) Weekend
WHAT A (FAST) WEEKEND Red a “4 WORLD RECOR Mec t Pi (ee a ——— =e » ae — 1 World Record : 2 World U20 Records Agnes Ngetich_ 4 Continental Records 4 National Records 1 World Record 2 Winners 1 Photo Finish
Slide 4: Strong First Quarter
STRONG FIRST QUARTER YIORUENTG ES TL
Slide 5: Despite Facing External Challenges and Operating in a Volatile World
Slide 6: Strong First Quarter of 2025
STRONG FIRST QUARTER OF 2025 € IN MILLIONS Q1 2025 Y-0-Y NET SALES GROSS PROFIT % OF NET SALES OPERATING PROFIT % OF NET SALES
Slide 7: Halftime
HALFTIME 10% NS GROW | > 50-52% | a 2023) =2024 =2025 2026 bat ot ° (i Ca-3 Mews a BETTER Mbeels COMPANY HEALTHY Keg) Fi COMPANY 1) lio BREAK EVEN GOOD e ig? imo 7 EBIT COMPANY AND COMPANY yy e TRANSITION 4,
Slide 8: .. and the Culture Born From It
.. AND THE CULTURE BORN FROM IT
Slide 9: You Got This
YOU GOT THIS
Slide 10: Strong Local Execution
Slide 11: Strong Performance Launches
STRONG PERFORMANCE LAUNCHES
Slide 12: With Local Execution
WITH LOCAL EXECUTION
Slide 13: Showing Up Strong in Sports Moments
SHOWING UP STRONG IN SPORTS MOMENTS on on : smn FASTEST 200M IN nant ea! INDOOR CHAMPION 60 AUSTRALIAN HISTORY WINSYSIX NATIONS HURDLES (3RD CONSEC. YEAR) EAM WON 2025 CHAMPIONS ~' TROPHY (THIRD TIME) DESETAKELE WINS TOKYO \ MARATHON (2:05:42) MARATHON (2:03:23) > \ $ "| id FOTYEN TESFAY SEESWOMEN'S
Slide 14: We Know Who We Are
WE KNOW WHO WE ARE | | WE AREA SPORTS BRAND...
Slide 15: adidas Originals Superstar
ah F gs a AD " Pa ¢ aed all i ADIDAS ORIGINALS SUPERSTAR
Slide 16: Strong Local Execution
Slide 17: Strong Lifestyle Products
STRONG LIFESTYLE PRODUCTS
Slide 18: With Strong Activations
WITH STRONG ACTIVATIONS Launches Cow Print rs on ASOS
Slide 19: Emerging | adidas Brand
ERGING | ADIDAS ee BRAND 3% +25% VS. 2024
Slide 20: Q1 2025 Revenue Growth by Channel
Q1 2025 REVENUE GROWTH BY CHANNEL 35% OWN RETAIL 14% E-COM +18% #13% -3% +18% WHOLESALE WHOLESALE = WN RETAIL E-COM EXCL. YEEZY (INCL. FRANCHISE) Q1 2025 CHANNEL GROWTH Q1 2025 CHANNEL SPLIT
Slide 21: ies <1
“a5 = : : i 7 ies <1
Slide 22: Q1 2025 Revenue Growth by Product Division
Q1 2025 REVENUE GROWTH BY PRODUCT DIVISION 7% ACCESSORIES FOOTWEAR 32% APPAREL +17% +8% +10% FOOTWEAR APPAREL ~—=—«ACCESSORIES Q1 2025 Q1 2025 PRODUCT DIVISION GROWTH PRODUCT DIVISION SPLIT REVENUE GROWTH CURRENCY NEUTRAL ADIDAS AG 22
Slide 23: Financial Update
Slide 24: P&L Items
P&L ITEMS € IN MILLIONS NET SALES ADIDAS BRAND +17% C.N. GROSS PROFIT % OF NET SALES ADIDAS BRAND +1.6PP ADIDAS AG 24
Slide 25: Gross Margin Drivers
GROSS MARGIN DRIVERS [whl] [> [4 [1 ---| +0.9PP |--., ‘ 52.1% 4 51.2% . GROSS GROSS MARGIN MARGIN ILLUSTRATIVE. OMEELY/,
Slide 26: P&L Items
P&L ITEMS 3.0PP IMPROVEMENT REFLECTING STRONG OVERHEADS LEVERAGE € IN MILLIONS qn 2024 Q1 2025 Y-0-Y 1 NET SALES 5458 6,153 ae GROSS PROFIT 8 3205 +154 % OF NET SALES 52.1% +0.9PP OTHER OPERATING INCOME [2 1 37% MARKETING & POS EXPENSES oe 746 +14% ‘ OF NET SALES 12.1% +0.1PP OOH EXPENSES a 1,870 +3
Slide 27: P&L Items
P&L ITEMS NORMALIZATION OF FINANCIAL EXPENSES NORMALIZATION OF TAX RATE € IN MILLIONS qn 2024 Qi 2025 Y-0-Y OPERATING PROFIT ee 610 +82% % OF NET SALES 9.9% +3.8PP FINANCIAL INCOME mh 34 +41% FINANCIAL EXPENSES 15 59 49% «—| INCOME BEFORE TAXES ae 585 +139% % OF NET SALES 9.5% +5.0PP. INCOME TAXE IN
Slide 28: Balance Sheet Development
BALANCE SHEET DEVELOPMENT
Slide 29: Inventory Development
INVENTORY DEVELOPMENT € IN BILLIONS Q1 2024 AT QUARTEREND. +15% | +15% C.N, Q2 2024 Q3 2024 Q4 2024 Q1 2025 HEALTHY INVENTORY POSITION TO SUPPORT CONTINUED DOUBLE-DIGIT TOP- LINE GROWTH FOR THE ADIDAS BRAND ZMEEDY, ADIDAS AG 29
Slide 30: Balance Sheet Development
BALANCE SHEET DEVELOPMENT € IN MILLIONS INVENTORIES ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE OPERATING WORKING CAPITAL ADIDAS AG 30
Slide 31: Average Operating Working Capital Development
AVERAGE OPERATING WORKING CAPITAL DEVELOPMENT AS A % OF NET SALES ponneeeeeee ee -3.6PP | ------------- = Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 AVERAGE OPERATING WORKING CAPITAL = AVERAGE OF OPERATING WORKING CAPITAL FOR THE LAST 4 QUARTERS DIVIDED BY NET SALES FOR THE LAST 4 QUARTERS. 34
Slide 32: Balance Sheet Development
BALANCE SHEET DEVELOPMENT € IN MILLIONS INVENTORIES ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE OPERATING WORKING CAPITAL CASH AND CASH EQUIVALENTS MAR 31, 2025 5,072 3,137 2,748 5,461 1,432 CHANGE +15% | +15% C.N. +20% | +21% C.N. +20% | +20% C.N. +15% | +16% C.N. +32% 32
Slide 33: Cash and Net Borrowings Development
CASH AND NET BORROWINGS DEVELOPMENT CASH AND CASH EQUIVALENTS € IN BILLIONS --7 +€0.3BN }-, Q1 2023 Qi 2024 Q1 2025 ILLUSTRATIVE. ADJUSTED NET BORROWINGS € IN BILLIONS Q1 2023 Qi 2024 Q1 2025 ADIDAS AG 33
Slide 34: Net Leverage Ratio Development
NET LEVERAGE RATIO DEVELOPMENT 4.7X STRONG DELEVERAGING DESPITE . OPERATING WORKING CAPITAL INVESTMENTS <2.0x Financial Policy Target Q1 2023 Q1 2024 ILLUSTRATIVE. ADIDAS AG
Slide 35: Halftime
HALFTIME | 2023 =2024 =. 2025—Ss- 2026 BETTER COMPANY HEALTHY COMPANY BREAK EVEN GOOD COMPANY AND COMPANY TRANSITION
Slide 36: We Are the Hottest Brand
WE ARE THE HOTTEST BRAND Adidas has ‘brand heat,’ analysts say. It’s a hot stock, too. ‘ | = sh x. Adidas succeeds 7 lala le Fj in modern y oe fashion Why Adidas was the real winner bf hy Adidas was the real winner of fashion month
Slide 37: We Have the Hottest Shoes on the Streets
WE HAVE THE HOTTEST SHOES ON THE STREETS TODAY SCALED UP TOMORROW GROWTH
Slide 38: adidas Taekwondo, Japan, Adiracer and Tokyo
The adidas Taekwondo, adidas Japan, adidas Adiracer, and adidas Tokyo are the four game-changing styles that'll transform any look into a stylish ensemble. __ lA wee @ Thocut = The Internet’s Most Anticipated Sneaker Drop Is Here ——r a a Ss st Bl == Be = ¢ Thanks to the Bad Bu nny x Adidas Ballerina
Slide 39: We Have the Hottest Shoes on the Streets
WE HAVE THE HOTTEST SHOES ON THE STREETS TODAY SCALED UP TOMORROW GROWTH 39
Slide 40: EVO SL
EVO SL [w] Runner's World Why the Adidas Adizero Evo SL Is Front-Runner for Shoe of FOR Sricy LonGRuNs 2 Races rsweu.
Slide 41: Lifestyle Running
LIFESTYLE RUNNING CLASSIC COMFORT VIZ TECH LA TRAINER ADISTAR ADIZERO EVO SL LIGHTBLAZE GOUKANA MEGARIDE CLIMACOOL 0G CLIMACOOL
Slide 42: We Have the Hottest Shoes on the Streets
WE HAVE THE HOTTEST SHOES ON THE STREETS TODAY SCALED UP TOMORROW GROWTH
Slide 43: Pharrell Williams and adidas Reinvent an Icon
HARRELL WILLIAMS AND ADIDAS REINVENT AN ICON WITH THE SUPERSTAR 92 Adidas x Bape team up a SUPERSTAR , adidas Wants You to Roller Skate in Superstars
Slide 44: We Have the Hottest Shoes and Apparel on the Streets
WE HAVE THE HOTTEST SHOES AND APPAREL ON THE STREETS
Slide 45: We Have the Hottest Shoes and Apparel on the Streets
WE HAVE THE HOTTEST SHOES AND APPAREL ON THE STREETS FOR EVERY CONSUMER
Slide 46: We Are a Sports Brand
a\\ WE AREA SPORTS BRAND
Slide 47: Extend Momentum to Performance
Slide 48: We Are!
WE ARE |!
Slide 49: Key Sports Globally
KEY SPORTS GLOBALLY... & _¥ 4 ® if \ FOOTBALL RUNNING TRAINING BASKETBALL
Slide 50: And Many, Many, Many Local Sports
«AND MANY, MANY, MANY “LOCAL” SPORTS
Slide 51: All Fueled by Strong Innovation
ALL FUELED BY STRONG INNOVATION FAST@MPANY STRONG PIPELINE FOR 2025 SPORTS MOMENTS 36 > eal4
Slide 52: Futbol 2026
FUTBOL 2026
Slide 53: Football
FOOTBALL Ty
Slide 54: How Do We Do This?
Slide 55: A Global Brand with a Local Mindset
A GLOBAL BRAND WITH A LOCAL MINDSET CONSUMER/ATHLETE DECISIONS ITALL STARTS WITH THE MADE AT CONSUMER NEEDS MOST IMMEDIATE LEVEL MARKETS L RESPONSIBLE FOR COMMERCIAL SUCCESS WITH CREATION CENTERS TAILOR TO LOCAL DEMAND STRONG LOCAL GLOBAL LEADERSHIP GLOBAL PROVIDES FRAME FOR BRAND IDENTITY, DESIGN,
Slide 56: FY 2025 Outlook
FY 2025 OUTLOOK AS SHOWN ON MARCH 5, 2025 NET SALES GROWTH NET SALES GROWTH OPERATING PROFIT EXCL. YEEZY (C.N.) REPORTED (C.N.) (€BN) GUIDANCE DOUBLE-DIGIT HIGH-SINGLE-DIGIT 1.7-1.8 CONSIDERATIONS MACROECONOMICANDIGEOPOUTICAL CHALLENGES TO PERSIST FURTHER MARKERSHAREIGAING DESPITE MARKET CHALLENGES
Slide 57: US Tariffs
US TARIFFS WHAT WE HAVE DONE = CUSTOM CLEARED AS MUCH AS POSSIBLE BEFORE APRIL 4 AND APRIL 9 = ANALYZED DIFFERENT SCENARIOS = REROUTED PRODUCTS = PRICING REVIEW
Slide 58: FY 2025 Outlook
FY 2025 OUTLOOK NET SALES GROWTH NET SALES GROWTH OPERATING PROFIT EXCL. YEEZY (C.N.) REPORTED (C.N.) (€BN) GUIDANCE DOUBLE-DIGIT HIGH-SINGLE-DIGIT 1.7-1.8 CONSIDERATIONS ADDITIONAL CONSIDERATIONS MACROECONOMIC AND GEOPOLITICAL CHALLENGES T0 PERSIST BETTER-THAN-EXPECTED Q1 2025 STRONG ORDERBOOK FURT
Slide 59: Roadmap to Success
ROADMAP TO SUCCESS 10% NS'GROW _~ 50-52% GROSS MARGIN 2023 2024 2025 2026 ‘et et 3 . Met © -3 BETTER he an cone ea al Le) BREAK EVEN GOOD . a “ 0% EBIT 4 COMPANY AND COMPANY yy it TRANSITION
Slide 60: Time to Win
Slide 61: Q&A