adidas Group Online Annual Report 2006

Our Brand Portfolio

» adidas is a key player in the sporting goods market with leadership positions in footwear, apparel and hardware. adidas products offer technological innovation and cuttingedge designs to athletes of all skill levels who aspire to achieve peak performance. The adidas brand is structured in three divisions: Sport Performance, Sport Heritage and Sport Style.

adidas € in millions

	2006	2005	Change

Sales	6,626	5,861	13.1%
Gross profit	3,059	2,654	15.3%
Gross margin	46.2%	45.3%	0.9pp
Operating profit	788	693	13.6%
Operating margin	11.9%	11.8%	0.1pp
Employees	14,906	12,395	20.3%

Rounding differences may arise in percentages and totals.

» Reebok is a leading worldwide designer, developer and marketer of sports, fitness and casual footwear, apparel and hardware products that combine the attributes of athletic performance and style. Reebok’s mission is to always challenge and lead through creativity. Its position is to celebrate individuality in sport and life. The Reebok segment comprises three brand units: Reebok, Reebok-CCM Hockey and Rockport.

Reebok¹⁾ € in millions

	2006	2005	Change

Sales	2,473	2,718²⁾	(9.0%)
Gross profit³⁾	865	—	—
Gross margin³⁾	35.0%	—	—
Operating profit³⁾	86	—	—
Operating margin³⁾	3.5%	—	—
Employees	7,545	—	—

Rounding differences may arise in percentages and totals. 1) Only includes eleven months of the twelve-month period. 2) Not consolidated within the adidas Group. Reebok prior year results are based on US-GAAP not IFRS. 3) Including effects from purchase price allocation.

» TaylorMade-adidas Golf offers a full range of golf hardware, footwear, apparel and accessories. It is market leader in the metalwoods category. TaylorMade-adidas Golf markets products under the brand names TaylorMade, adidas Golf and Maxfli.

TaylorMade-adidas Golf € in millions

	2006	2005	Change

Sales¹⁾	856	709	20.8%
Gross profit¹⁾	376	312	20.5%
Gross margin¹⁾	43.9%	44.0%	(0.1pp)
Operating profit¹⁾	73	50	44.1%
Operating margin¹⁾	8.5%	7.1%	1.4pp
Employees	1,368	1,282	6.7%

Rounding differences may arise in percentages and totals. 1) 2006 figures include Greg Norman apparel business from February 1 to November 30. Excluding Greg Norman wholesale business from December 1, 2006.