Interview with the CEO
2006
was a truly exciting year for the adidas Group. With the acquisition of
Reebok, the Group broke through the € 10 billion sales mark for the
first-time. During the year, the adidas brand captured the world’s
attention with its dominant presence at the 2006 FIFA World Cup™.
Significant progress was made at fully integrating the Reebok brands
and organization. The Group continued to improve operational efficiency
and financial strength and delivered 26% earnings growth. In the
following interview, Herbert Hainer, adidas Group Chairman and CEO,
reviews 2006, and discusses the Group’s strategic and financial outlook.
Herbert, 2006 was a big year for the Group. What were the stand-out moments and events of the year?
2006 was without a doubt the most exciting year in my tenure as CEO of the adidas Group. We chose the name “setting the pace” for this annual report, because that’s exactly what I believe we did in 2006 – and by the way what I challenge my Group to keep doing every day.
In February, we welcomed Reebok into the adidas family, adding a powerful new dimension to our Group. Integration and change management quickly became two of our highest day-to-day priorities. Although there are still many challenges, we made important strides in putting the right people and processes in place to ensure we maximize the long-term opportunities this milestone acquisition presents. While all this was going on, adidas reigned supreme at the 2006 FIFA World Cup™ during the summer taking product, communication and execution to new levels. And let’s not forget TaylorMade-adidas Golf, which also delivered industry-leading top-line results and gained market share in several categories. Financially, too, the year was a record one with sales surpassing € 10 billion for the first time and net earnings growing an outstanding 26%, which would have been even higher excluding negative accounting impacts from the first-time inclusion of Reebok.
The 2006 World Cup left a huge impression with millions of people around the globe. What was its impact on the Group?
In every respect, this World Cup was a tremendous
success – for fans, for Germany, and for adidas. We clearly scored with
consumers, breaking sales records for footballs, boots and national
team replica products. There were more players in the tournament
wearing adidas footwear than any other brand. And our brand
communication made a step change, with spectacular onsite advertising.
Independent research confirmed that adidas was the hands-down winner in
brand recognition among the 15 official partners, and our major
competitors. All of this meant that we were able to extend our
market-leading position in the world’s favorite sports category,
growing football sales by more than 30% to over
€ 1.2 billion.
