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adidas-Salomon in 2000: Sales reach record level of €5.8 billion

Gross margin maintained at 43.3% despite currency pressure +++ Net income in line with expectations +++ Dividend sustained at €0.92

Mon, 05 February 01

Sales reach record level of €5.8 billion

Herzogenaurach, 05/02/2001 - Based on preliminary figures, the 2000 adidas-Salomon sales reached €5.8 billion, the highest level in the Group’s history. This 9% year-over-year improvement is the result of higher sales figures in all brands and regions with the exception of adidas in North America. Gross margin for the Group was maintained at an industry-leading 43.3%, despite the negative effects of a strong US dollar.

Net income in line with expectations

In 2000, adidas-Salomon’s income before taxes was €347 million, down 13% over last year. This decline was largely a result of increased operating expenses, which were up 12% to €2.1 billion. Drivers of the increase were the Growth & Efficiency Program, as well as higher marketing spend for the Olympics and EURO 2000 soccer championships.

A significantly higher tax rate and minority interests pushed net income down to €182 million or €4.01 per share. This result is 20% below last year’s level but exactly in line with the expectations that the Group has communicated since January 2000.

Dividend sustained at €0.92

The adidas-Salomon Executive Board will propose paying a dividend of €0.92 per share to the Annual General Meeting of Shareholders on May 10, the same amount as in the previous year. This decision to maintain a stable dividend level, despite the EPS decline in 2000, underlines Management’s confidence in its ability to achieve its 2001 financial targets. Management views 2000 as a year of consolidation and restructuring and has increased the pay-out percentage to reward long-term shareholders.

Final full-year results will be released on March 8, 2001.

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