Target vs. Results
Targets 2006
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Results 2006 |
Targets 2007 |
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| » | Deliver double-digit currency-neutral sales growth (high-single-digit growth for the Group excl. Reebok) | » | Group sales reach € 10.1 billion; currency-neutral growth of 53% (14% excluding Reebok) | » | Mid-single-digit currency-neutral sales growth |
| » | Bring major new concepts, technology evolutions and revolutions to market | » | Major 2006 product launches:
› adidas: +F50 TUNIT football boot, adidas_1 basketball shoe, Adilibria women’s apparel collection, integrated training system by adidas and Polar › Reebok: Trinity KFS running shoe, Rbk 9k Pump Skate › TaylorMade-adidas Golf: r7® irons, TaylorMade® TourPreferred® (TP) golf balls |
» | Bring major new concepts, technology evolutions and revolutions to market |
| » | Grow currency-neutral sales at adidas and TaylorMade-adidas Golf in all regions | » | Currency-neutral sales increase 14% at adidas and 22% at TaylorMade-adidas Golf; currency-neutral sales grow in all regions | » | Currency-neutral sales to grow at all brands and for all regions |
| » | Gross margin range 44 – 46% (47 – 48% excl. Reebok) |
» | Gross margin: 44.6% (47.8% excl. Reebok) | » | Gross margin range 45 – 47% |
| » | Operating margin around 9% (10 – 10.5% excl. Reebok) | » | Operating margin: 8.7% (10.5% excl. Reebok) | » | Operating margin around 9% |
| » | Continue to optimize working capital management | » | Operating working capital as a percentage of net sales reduced by 0.2pp to 25.8% (excluding Reebok reduced by 2.5pp to 23.5%) | » | Reduce operating working capital as a percentage of net sales to below 25% |
| » | Capital expenditure range € 300 million – € 350 million (excluding extraordinary investments related to Reebok) |
» | Capital expenditure: € 277 million (excluding extraordinary investments related to Reebok) | » | Capital expenditure range € 300 million – € 400 million |
| » | Reduce debt after financing of Reebok acquisition | » | Net borrowings reduced to € 2.231 billion; year-end financial leverage: 78.9% |
» | Reduce year-end net borrowings to below
€ 2 billion |
| » | Deliver double-digit net income growth versus 2005 level of € 383 million | » | Highest ever net income attributable to shareholders
at € 483 million (+26%) |
» | Net income to grow double-digit, approaching 15% |
| » | Further increase shareholder value | » | Dividend increase of 29% proposed; adidas AG share price underperforms DAX-30 and MSCI World Textiles, Apparel and Luxury Goods Index | » | Further increase shareholder value |