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Ten-Year Overview
 
  2006 1) 2005 2004 2003 2002 2001 2000 1999 1998 2) 1997
Income Statement Data (€ in millions)                    
Net sales 3) 10,084 6,636 5,860 6,267 6,523 6,112 5,835 5,354 5,065 3,425
Gross profit 3) 4,495 3,197 2,813 2,814 2,819 2,601 2,528 2,352 2,124 1,437
Royalty and commission income 3) 90 47 42 42 46 42 43 35 45 44
Operating expenses 3) 3,704 2,537 2,236 2,324 2,343 2,126 2,091 1,870 1,698 1,129
Operating profit 3) 4) 881 707 584 490 477 475 437 482 416 316
Financial result 3) 5) (158) (52) (59) (49) (87) (102) (94) (84) (115) (16)
Income before taxes 3) 5) 723 655 526 438 390 376 347 398 319 346
Income taxes 3) 227 221 193 167 148 147 140 153 105 95
Minority interests 3) 5) (13) (8) (7) (11) (14) (21) (25) (18) (9) (14)
Net income attributable to shareholders 6) 483 383 314 260 229 208 182 228 205 237
                     
Income Statement Ratios                    
Gross margin 3) 44.6% 48.2% 48.0% 44.9% 43.2% 42.6% 43.3% 43.9% 41.9% 41.9%
Operating expenses as a percentage of net sales 3) 36.7% 38.2% 38.2% 37.1% 35.9% 34.8% 35.8% 34.9% 33.5% 33.0%
Operating margin 3) 4) 8.7% 10.7% 10.0% 7.8% 7.3% 7.8% 7.5% 9.0% 8.2% 9.2%
Interest coverage 3) 5.9 18.4 10.2 8.4 6.4 4.9 4.6 6.1 4.8 21.2
Effective tax rate 3) 31.4% 33.7% 36.7% 38.0% 37.9% 39.0% 40.3% 38.4% 33.0% 27.5%
Net income attributable to shareholders as a percentage of net sales 6) 4.8% 5.8% 5.4% 4.2% 3.5% 3.4% 3.1% 4.3% 4.0% 6.9%
                     
Balance Sheet Data (€ in millions)                    
Total assets 5) 8,379 5,750 4,434 4,188 4,261 4,183 4,018 3,587 3,206 2,224
Inventories 1,607 1,230 1,155 1,164 1,190 1,273 1,294 1,045 975 821
Receivables and other current assets 1,913 1,551 1,425 1,335 1,560 1,520 1,387 1,234 1,026 592
Working capital 5) 1,733 2,644 1,336 1,433 1,445 1,485 1,417 1,096 (327) 11
Net total borrowings 2,231 (551) 665 1,018 1,498 1,679 1,791 1,591 1,655 738
Shareholders' equity 5) 2,828 2,684 1,544 1,285 1,081 1,015 815 680 463 717
                     
1) Including Reebok business segment from February 1, 2006 onwards, excluding Greg Norman wholesale business from December 1, 2006 onwards.
2) Consolidated financial statements for 1998 include the Salomon group for the first time.
3) 2004 and 2005 reflect continuing operations as a result of the divestiture of the Salomon business segment.
4) Operating profit figures prior to 2004 exclude royalty and commission income and goodwill amortization.
5) 2004 and 2003 figures have been restated due to application of IAS 32/IAS 39 and amendment to IAS 19.
6) Includes income from continuing and discontinued operations. In 1998 before special effect of € 369 million for acquired in-process research and development – expensed.
7) Figures adjusted for 1: 4 share split conducted on June 6, 2006.
8) Includes discontinued operations.
9) Subject to Annual General Meeting approval.