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adidas Group Presents Strategy for Further Growth

Diese Pressemitteilung ist nur in englischer Sprache erhältlich.

London, April 11, 2006 – The adidas Group today presented its strategy for further growth following the integration of Reebok International Ltd. in London. Herbert Hainer, adidas Group Chairman and CEO, increased the medium-term sales guidance and earnings outlook for 2007.

The Group now expects to post high-single-digit sales growth for each of the next three years versus a previous guidance of mid-to-high single digit revenue growth. Additionally, the Group said net income would increase by double-digit rates for each of the next three years, including by at least 20% in 2007.

Herbert Hainer commented: “Our mission at the adidas Group is to be the global leader in the sports industry, with brands built on a passion for sports and a sporting lifestyle. We are organized around our biggest brands – adidas, Reebok and TaylorMade-adidas Golf, all of which are performance leaders in the global sporting goods industry. Today, we increased both revenue and earnings targets, in line with our consistent record of achieving strong financial results for shareholders.”

In his comments, Herbert Hainer provided a summary of the integration of adidas and Reebok, raising expected annualized cost synergies to € 175 million (from an original estimate of € 125 million) with the net impact realized in 2009. Annual revenue synergies of € 500 million will also be fully realized in 2009.

“We are showing terrific progress in the continued integration of Reebok, and are fully confident we can leverage our combined strengths to deliver on our ambitious goals as a Group,” Herbert Hainer said.

In addition, the Group’s brand Presidents & CEOs gave an overview of their respective businesses.

Erich Stamminger, President & CEO of brand adidas, offered an overview of the largest brand within the Group, citing four specific areas for future expansion: basketball, football, running and Originals. He also announced a landmark 11-year strategic global merchandising partnership that will make the adidas brand the official uniform and apparel provider for the NBA from the 2006/2007 season onwards. Erich Stamminger separately confirmed that adidas would post record football-related sales in 2006, with revenue increasing year-over-year by at least 20% to surpass € 1 billion.

Paul Harrington, President & CEO of the Reebok brand, focused his remarks on what it will take to reposition Reebok and strengthen its credentials in the sport performance market while maintaining its unique positioning in sports lifestyle. Going forward, Reebok will focus its long-term growth efforts on apparel, running, women’s, the US sports leagues, basketball and football (soccer).

Mark King, President & CEO of TaylorMade-adidas Golf, explained his strategy to increase TaylorMade’s position as the leading metalwood supplier. In addition he announced the medium-term target to increase sales to over € 1 billion.

Glenn Bennett, Member of the Executive Board responsible for Global Operations of the adidas Group, gave an outlook for savings and the sizable opportunities he foresees throughout the supply chain going forward.

Chief Financial Officer Robin Stalker detailed the financial impacts of the Group’s integration initiatives.