First Half Year Report 2009

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 01 - ad09Q2_En.indd adidas Group segmental information Table of Contents € in millions 03 Financial Highlights 1st half year 2009 1st half year 2008 Change 2nd quarter 2009 2nd quarter 2008 Change

04 Operational and Sporting Highlights adidas

Net sales 3,667 3,787 (3.1%) 1,750 1,818 (3.8%) Interview with the CEO 05 Gross profit 1,713 1,843 (7.1%) 812 879 (7.6%) Gross margin 46.7% 48.7% (2.0pp) 46.4% 48.3% (1.9pp) 11 Our Share Operating profit 416 512 (18.7%) 188 175 7.2% Operating margin 11.3% 13.5% (2.2pp) 10.7% 9.6% 1.1pp 13 Interim Group Management Report 13 Group Business Performance Reebok 13 — Economic and Sector Development Net sales 907 923 (1.7%) 449 469 (4.3%) 14 — Income Statement Gross profit 283 361 (21.8%) 148 193 (23.3%) Gross margin 31.2% 39.2% (8.0pp) 33.0% 41.2% (8.2pp) 18 — Balance Sheet and Cash Flow Statement Operating profit (147) (24) (515.4%) (51) (11) (351.7%) 20 adidas Operating margin (16.2%) (2.6%) (13.6pp) (11.3%) (2.4%) (8.9pp) 22 Reebok 24 TaylorMade-adidas Golf TaylorMade-adidas Golf 26 Subsequent Events and Outlook Net sales 449 417 7.6% 255 226 12.6% Gross profit 177 194 (8.8%) 100 105 (5.2%) 29 Interim Consolidated Financial Statements Gross margin 39.4% 46.5% (7.1pp) 39.0% 46.4% (7.3pp) (IFRS) Operating profit (18) 43 (143.2%) 2 19 (89.0%) 29 Responsibility Statement Operating margin (4.1%) 10.3% (14.4pp) 0.8% 8.6% (7.7pp) 30 Consolidated Balance Sheet 31 Consolidated Income Statement 32 Consolidated Statement of Comprehensive Income 33 Consolidated Statement of Changes in Equity 34 Consolidated Statement of Cash Flows 35 Notes to Interim Consolidated Financial Statements

37 Segmental Information 37 Segmental Information by Brand 38 Segmental Information by Region

39 Management Boards

40 Financial Calendar 2009/2010

41 Contact

adidas Group First Half Year Report 2009 02

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 02 - ad09Q2_En.indd First half year net sales Financial highlights (IFRS) € in millions

1) 2005 3,190 1st half year 2009 1st half year 2008 Change 2nd quarter 2009 2nd quarter 2008 Change 2006 2) 4,887 Operating highlights (€ in millions) 2007 4,938 Net sales 5,034 5,142 (2.1%) 2,457 2,521 (2.5%) 2008 5,142 Operating profit 129 490 (73.6%) 72 208 (65.5%) Net income attributable to shareholders 13 286 (95.3%) 9 116 (92.6%) 2009 5,034

Key ratios (%) 1) Figure reflects continuing operations as a result of the divestiture of the Salomon business segment in 2005. Gross margin 45.1% 49.6% (4.6pp) 45.0% 50.1% (5.1pp) 2) Including Reebok business segment from February 1, 2006 onwards. Including Other operating expenses Greg Norman apparel business from February 1, 2006 to November 30, 2006. as a percentage of net sales 44.3% 41.7% 2.7pp 43.9% 43.3% 0.6pp Operating margin 2.6% 9.5% (7.0pp) 2.9% 8.2% (5.3pp) Effective tax rate 66.8% 31.5% 35.3pp 71.3% 30.8% 40.6pp First half year net income attributable to shareholders Net income attributable to shareholders as a percentage of net sales 0.3% 5.6% (5.3pp) 0.3% 4.6% (4.3pp) € in millions Operating working capital as a percentage of net sales 1) 26.2% 24.2% 2.1pp 26.2% 24.2% 2.1pp 2005 1) 171 Equity ratio 33.9% 31.6% 2.3pp 33.9% 31.6% 2.3pp 2006 2) 226 Financial leverage 85.7% 82.3% 3.3pp 85.7% 82.3% 3.3pp 2007 232 Balance sheet and cash flow data(€ in millions) 2008 286 Total assets 9,407 8,679 8.4% 9,407 8,679 8.4% 2009 13 Inventories 2,041 1,806 13.0% 2,041 1,806 13.0% Receivables and other current assets 2,434 2,343 3.9% 2,434 2,343 3.9% 2) 1) Includes continuing and discontinued operations. Working capital 1,685 1,527 10.4% 1,685 1,527 10.4% 2) Including Reebok business segment from February 1, 2006 onwards. Including Net borrowings 2,732 2,260 20.9% 2,732 2,260 20.9% Greg Norman apparel business from February 1, 2006 to November 30, 2006. Shareholders’ equity 3,189 2,746 16.2% 3,189 2,746 16.2% Capital expenditure 116 129 (9.9%) 60 74 (18.4%) Net cash (used in)/provided by operating activities (366) 17 (2,209.0%)

Per share of common stock (€) Basic earnings 0.07 1.42 (95.1%) 0.04 0.59 (92.5%) Diluted earnings 0.10 1.35 (92.9%) 0.06 0.56 (89.7%) Operating cash flow (1.89) 0.09 (2,284.2%) Share price at end of period 27.10 40.11 (32.4%) 27.10 40.11 (32.4%)

Other (at end of period) Number of employees 38,935 34,834 11.8% 38,935 34,834 11.8% Number of shares outstanding 3) 193,515,512 203,644,960 (5.0%) 193,515,512 203,644,960 (5.0%) Average number of shares 193,515,512 200,415,758 4) (3.4%) 193,515,512 198,388,447 (2.5%) Rounding differences may arise in percentages and totals. All Group figures comprise the brand segments and HQ/Consolidation. 1) Twelve-month trailing average. 2) 2008 restated due to reclassification of long-term to short-term borrowings. 3) All shares except treasury shares carry full dividend rights. 4) After deduction of treasury shares.

To Our Shareholders Financial Highlights adidas Group First Half Year Report 2009 03

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03 05

Second quarter 2009

07.04. Picture 01 adidas opens its first South East Asian adidas SLVR Label store in Bangkok, launches in Italy, Chile and Malaysia throughout the month of May. 25.05. Picture 05 adidas launches Thailand. 16.04. adidas and the Boston Athletic Association (B.A.A.) extend their contract which the new global football campaign “Every team needs the spark” with Zinédine Zidane and Lionel keeps adidas as the Official Supplier and Outfitter of the Boston Marathon. 20.04. Picture 02 The new Messi. 23.06. Last year’s BMW International Open winner Martin Kaymer joins TaylorMade-adidas 10K Sickick II, Reebok’s lightest hockey stick ever, hits retailers’ shelves. 06.05. adidas and the Golf’s Tour Staff. 23.06. Numerous female celebrities such as Karina Smirnoff, the Kardashians and DFL (German Football League) announce that adidas will provide the official match ball as of DJ Samantha Ronson gather in Los Angeles to celebrate Reebok’s EasyTone™. 25.06. Reebok-CCM the 2010/2011 season. 12.05. Picture 04 TaylorMade-adidas Golf opens the TaylorMade Center of Hockey enters into multi-year partnership agreements with the top three 2009 NHL Draft picks Excellence™ in Herzogenaurach in the presence of Sergio Garcia and Franz Beckenbauer. John Tavares, Victor Hedman and Matt Duchene. 27.06. adidas sponsored swimmer Britta Steffen 13.05. Reebok launches the “Your Reebok” iPhone applet which enables users to customise and sets a new world record in the 100m freestyle finals of the German Championships wearing the new buy their self-designed shoes through their mobile phone. 13.05. Picture 03 TaylorMade introduces adidas HYDROFOIL swimsuit. 29.06. Vogue.com names JUKARI Fit to Fly™ the “Best New Indoor the R9 460 driver, which combines TaylorMade’s renowned Flight Control Technology with a 460cc Workout”. 30.06. Picture 06 adidas and Reebok participate in the Bread & Butter fashion and lifestyle titanium clubhead and an extremely lightweight graphite shaft. 22.05. Reebok unveils its new trade show in Berlin with stand-out exhibitions, designed to celebrate “60 Years of Soles and workout concept JUKARI Fit to Fly™ at the Russian Fitness Festival in Moscow after successful Stripes” as well as the anniversary of The PUMP™.

To Our Shareholders Operational and Sporting Highlights adidas Group First Half Year Report 2009 04

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 04 - ad09Q2_En.indd Interview with the CEO The sporting goods industry and the adidas Group have been exposed to the full effects of the global economic downturn, reflected in a currency-neutral adidas Group sales decline of 7% in the first half of 2009. While the remainder of the year will be challenging, the Group expects significant improvements compared to the first half particularly in profitability in the second half of the year. Important organisational changes and efficiency measures currently being implemented will ensure the Group is in a position to drive long-term sustainable Herbert Hainer improvements in operating performance. CEO and Chairman of the Executive Board

In the following interview, Herbert Hainer, adidas Group CEO and Chairman, reviews the first half of 2009 and discusses the Group’s strategic and financial outlook.

To Our Shareholders Interview with the CEO adidas Group First Half Year Report 2009 05

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 05 - ad09Q2_En.indd Herbert, after a weak start to the year, have you seen any signs of stabilisation Looking at the different regions, can you share with us your evaluation of their during the second quarter? development? The impacts of the economic downturn and repercussions on consumer spending Currency-neutral sales declined in all regions except Latin America in the first are well documented and certainly continued to influence our performance in the half of the year. In Europe, where sales were down 8% in the first half, we faced second quarter. However, I am pleased to report that we did not see any funda- strong prior year sales related to the UEFA EURO 2008™, and also significant mental deterioration in our business since our last results presentation, and the currency effects from the devaluation of the Russian rouble. In fact, I believe this factors that impacted our results are more or less the same as they were in the is a solid performance when compared to the 20% growth we had in the same first quarter. As a result, our financials for the first half of 2009 are exactly in line period last year. Looking at North America, we saw a big improvement in our with the guidance we provided you with back in May – if not a little better. results in the second quarter with sales down only 3% compared to 17% in the Let me briefly discuss the key facts and figures. Our Group sales are down first quarter. A priority for all of our brands this year in North America is to ensure 7% on a currency-neutral basis for the first half. Higher input prices andcurrency we keep our brand positioning in check. This has meant a high focus on managing devaluation effects continued to have a significant impact on our gross margin, excess inventories particularly with factory outlets, while also reducing our expo- which decreased 4.6 percentage points to 45.1%. Currency in general was a major sure to lower price points such as US $ 29.99 at Reebok. While I am more satisfied negative effect on our overall result. If we take for example the Russian rouble, with our performance in North America in the second quarter, I believe caution is the impact of currency devaluation effects here reduced our gross profit by almost warranted as we look to the remainder of the year. The jury is still out on how € 120 million in the first half. On the cost front, we have been diligent balancing much appetite the consumer will have in the important back-to-school season our need to invest while continuing to work on initiatives to drive operational this year, therefore we are taking a prudent approach to the market. Turning to efficiency. As a consequence, our diluted earnings per share were € 0.10 for the Asia, sales declined 9% in the first half. There have been varying performances by first half. Although considerably below the prior year level, this reflects a similar market with sales decreases in Japan and China, while India and other emerging performance to the first quarter. So to summarise, yes I do believe we have seen Asian markets continue to show solid growth. In China, the market is still suffering some stabilisation during the second quarter. the inventory hangover from last year’s Olympic Games. However, we are through the worst now and I am confident that by the end of the year we will be in good shape to return to growth in 2010. Finally for Latin America, our most resilient market, revenues are up 24% on a currency-neutral basis for the first half. This is the reward for years of consistency in building brand image and we are very close to taking market leadership in the region. Although there are signs that the economic environment is weakening, I believe this market will continue to be our most robust this year and we will continue to take share from our competitors.

To Our Shareholders Interview with the CEO adidas Group First Half Year Report 2009 06

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 06 - ad09Q2_En.indd What were the key highlights of the adidas brand during the period, and how Reebok sales are now projected to decline at a low- to mid-single-digit rate are you positioning the business to build momentum into 2010? currency-neutral. Can you comment on the reasons for this? Can you also pro- Given the high prior year sales related to the UEFA EURO 2008™ and the Beijing vide an update as to where you are in terms of turnaround? Olympic Games, the sales decline in the quarter was in line with what we expected. During the first half, Reebok sales are down 6% currency-neutral, which in com- Our team at adidas has nonetheless done a great job during the quarter, parison to what is going on in the market, is a reasonable result. The reason we particularly offsetting the impacts of gross margin pressures while keeping a tight have adjusted our guidance has to do with some general softening we have seen rein on costs. As a result, operating margin increased 1.1 percentage points to in emerging market growth rates, which will now fall short of our original expec- 10.7% in the quarter. Although large portions of the year-on-year savings are due tations. As you know, we have been working hard this year on our positioning in to the phasing of marketing spend in this non-event year, efforts to reduce China, where we will continue to rationalise our store base further in the second complexity in the adidas organisation by streamlining processes are already half. But also, in recent weeks we have seen a slower development in Latin delivering positive benefits. America. But that aside, there are also plenty of good things to report. Although While all of this was going on, the brand also continued to shape itself for footwear volumes are down this year, our clean-up efforts have led to a double- the future. In a few days time, on August 18, adidas will celebrate its 60th birthday, digit increase in average selling prices. We are also starting to feel a real differ and leveraging this long brand heritage continues to be a visible driving force with ence when talking to retailers about the strategic direction and innovation pipeline the consumer. This is typified by the 13% growth we have seen in our Sport Style we have shown already this year for 2010. We are leading the pack in the emerg- division in the first six months. And we will continue to drive ing toning category which industry experts are tipping as the next billion dollar momentum in our lifestyle business in the second half, for category. Reebok has made a big statement here with the introduction of the example, by rolling out several hundred shop-in-shop EasyTone™ this year. Our other big initiative, the new workout concept JUKARI Fit systems in key European markets such as the UK and to Fly™, is now up and running in all regions with recent launches in New York, France. On the performance side, we are also gearing up for London, Madrid, Hong Kong, New Delhi, Buenos Aires and Santiago de Chile. The an exciting 12 months. Taking football as an example, we just recently kicked off tremendous media coverage and consumer feedback to this concept shows we are the one year countdown to the 2010 FIFA World Cup™, where we will have a really reigniting our connection to the female consumer. For example, Vogue.com presence as sponsor on all levels. We also extended our long-term partnership recently named JUKARI Fit to Fly™ the “Best New Indoor Workout” – I can’t imagine with UEFA where for the first time we will support all official UEFA club football anything better for the brand’s image. We have also been working hard with our competitions including the Champions League, the newly created Europa League new advertising agency and our 2010 campaigns will make another step change and Super Cup. With initiatives like these, adidas has a great foundation to build in how the consumer perceives the brand. So while there is still a good portion of momentum as we turn the year. work ahead of us, I am convinced we are turning the corner.

To Our Shareholders Interview with the CEO adidas Group First Half Year Report 2009 07

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 07 - ad09Q2_En.indd Some of your competitors have claimed they are taking market share in golf. One of your key financial priorities for 2009 is to reduce inventories. Can you How has TaylorMade-adidas Golf stacked up versus the competition in 2009? give us an update on your progress particularly in light of the increases seen in I have highlighted before that even in a downturn there are opportunities. And the first quarter? despite what you hear from others, there is only one winner this year in the golf We are firmly committed to bringing our inventories back into check from the high market – and that’s TaylorMade-adidas Golf. The global golf market is estimated levels of the first quarter. As I have just discussed for TaylorMade-adidas Golf, to be down in the high teens so far in 2009. TaylorMade-adidas Golf sales are down inventory management is a key lever to driving cash flow generation. Currency- only 1%, or 9% if you exclude our new Ashworth business. That in itself testifies neutral inventory growth year-over-year at the end of the second quarter has that we are taking significant market share, and certainly more than our major sequentially slowed to 8% from 18% in the prior quarter. In fact, looking across competitors. We have record high market shares in the US in both metalwoods the segments, Reebok and also TaylorMade-adidas Golf inventories excluding and irons. In fact in irons, the Burner® 09 was the top-selling iron in June in the Ashworth have actually declined compared to the prior year. For adidas in Europe US, while the R9™ continues its revolution as the leading metalwood and the most and in America, our inventories were almost at prior year levels. The most signifi played on the PGA and European golf tours. Our roster of leading professionals cant year-over-year increase in our inventories is Latin America where we have continues to grow with Germany’s highest-ranked player Martin Kaymer and Greg taken steps to position ourselves to deal with increasing import restrictions. In Norman joining our TaylorMade tour staff, while Sean O’Hair and Ryan Palmer Asia, our inventories are also higher than I would like, however we see this situ- have joined Ashworth’s. But we’re not just winning the top-line battles or those ation improving significantly over the balance of the year as this market in general on the course. In terms of inventories, we have been very aggressive and fast to comes to terms with the inventory glut after the Olympic year. As I look to the react to the current climate. Compared to the end of March, our inventories are remainder of the year, I am confident we will make further progress. As our down 28% as we successfully moved non-core product and identified and inventory ageing is very healthy, we have ordered less for the second half of the implemented a series of methods to reduce our lead times. This success and our year and therefore I believe this will be a supporting factor in bringing our net debt innovation pipeline mean we continue to edge closer to the number one golf down to below the 2008 year end level. company in the market. With over € 800 million or US $ 1.2 billion in annual sales and our track record as the innovation leader, I am convinced TaylorMade-adidas Golf is well on its way to achieving its mission – to be the leading golf company in the world.

To Our Shareholders Interview with the CEO adidas Group First Half Year Report 2009 08

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 08 - ad09Q2_En.indd One of the key topics in financial markets this year has been financing. Can you Can you provide a short update on your plans for the future structure of the give us an update on where you currently stand? Group? As you know, our medium-term goal is to reduce our financial leverage to below All facets of our organisation are currently undergoing change, particularly as we 50%, and in the second quarter we demonstrated with clear success our ability move our business towards the new operating structure we announced in May. to manage cash in difficult times. At the end of June, net This includes the implementation of joint operating models in Europe and Latin borrowing amounted to € 2.7 billion, a reduction of 5% com- America, elimination of regional offices in favour of direct interaction with our key pared to the first quarter. We were able to generate markets and the formation of new wholesale and retail structures to drive our € 381 million in cash from operations despite a 66% drop in global sales organisation. As we get closer to completing these structural changes operating profit as we released a significant amount of cash which we are making on a brand, regional and market level, we are now separating from working capital. This is the highest amount of cash we have ever generated the responsibility between global brand and global sales management also on the outside of our seasonally strong fourth quarter. Board level. I will assume direct responsibility for global sales while my Board We have also been very active in credit markets during the last few months, colleague Erich Stamminger will take responsibility for global brands, comprising taking the opportunity of healthy demand for corporate issuances and good financ adidas and Reebok. This new structure follows two important principles: to foster ing conditions to further improve our term structure in favour of longer maturities. further alignment and strengthen brand management to support our long-term In June, we completed a € 200 million German Schuldscheindarlehen. And in July growth strategies, while at the same time ensuring coordinated and best practice we launched our first ever Eurobond to the tune of € 500 million. Appetite was execution in the marketplace. extremely high with the issue being multiple times oversubscribed. The five-year bond was priced with a spread of 200 basis points above mid-swap reflecting our high credit quality, as we achieved conditions placing us in the top league of credit issuers, which is not a given in these times. Seen also in the context of unutilised credit lines amounting to € 3.5 billion, there is little question about the resources we have at our disposal to take our business forward.

To Our Shareholders Interview with the CEO adidas Group First Half Year Report 2009 09

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 09 - ad09Q2_En.indd Finally, how do you see the rest of the year progressing in terms of financial Herbert, thank you for this interview. performance? Looking forward, the environment is still challenging and there are undoubtedly still some unknowns for the second half. But I am confident we are through the worst of the hurdles the environment has thrown our way. Therefore our guidance for the Group remains unchanged, with the exception of the top-line guidance for Reebok. We continue to forecast that full year sales will decline at a low- to mid- single-digit rate currency-neutral. We expect to generate significantly positive earnings per share in the second half of the year, albeit below the record levels of the prior year. This will be a consequence of a moderation of input cost increases and positive impetus ahead of the 2010 FIFA World Cup™. We will make further progress on our inventories which will set our Group up for a clean start to what will be an eventful 2010.

To Our Shareholders Interview with the CEO adidas Group First Half Year Report 2009 10

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 10 - ad09Q2_En.indd Our Share Global stock indices supported by turnaround The adidas AG share in forward-looking economic indicators In the second quarter of 2009, international International stock markets, the DAX-30 and the adidas AG stock markets recovered significantly from share gained substantially in the second quarter of 2009, Number of shares outstanding offsetting the negative development of the first quarter. Major declines in the first quarter. The main drivers first half average 193,515,512 indicators signalling a turnaround in the economic outlook at June 30 1) 193,515,512 of this development were improving forward- and rising consumer confidence positively impacted market Type of share No-par-value share looking economic indicators, the better than sentiment. In addition, the better than expected results of Free float 100% expected results of the US bank stress test, the US bank stress test added to positive investor sentiment. Initial Public Offering November 17, 1995 Rising oil and commodity prices were also interpreted as signs ongoing low interest rate policies and rising oil Share split June 6, 2006 (in a ratio of 1: 4) of an improving economic situation. Moreover, policymakers Stock exchange All German stock exchanges and commodity prices. The DAX-30 gained 18% continued with fiscal and monetary stimuli. The European Stock registration number (ISIN) DE0005003404 and the Dow Jones increased 11% compared to Central Bank lowered key interest rates by a further 50 basis Stock symbol ADS, ADSG.DE points to a new record low of 1.0%, while the Federal Reserve Important indices DAX-30 the end of March. Over the three-month period and the Bank of England maintained their policy of monetary MSCI World Textiles, the adidas AG share rose by 8%. easing. In light of the second quarter recovery, most major Apparel & Luxury Goods international stock indices ended the first half of 2009 around Deutsche Börse Prime Consumer or above levels at the beginning of the year. The DAX-30 ended Dow Jones STOXX the second quarter virtually unchanged at 4,809 points, while Dow Jones EURO STOXX the adidas AG share developed similarly, closing the six-month Dow Jones Sustainability FTSE4Good Europe period at € 27.10 (December 31, 2008: € 27.14). The MSCI Ethibel Index Excellence Global World Textiles, Apparel & Luxury Goods Index, which com- Ethibel Index Excellence Europe prises the Group’s main competitors, gained 12% during the ASPI Eurozone Index period. 1) All shares carry full dividend rights.

Historical performance of the adidas AG share and important indices at June 30, 2009 in %

YTD 1 year 3 years 5 years since IPO

adidas AG (0) (32) (28) 10 180 DAX-30 (0) (25) (15) 19 119 MSCI World Textiles, Apparel & Luxury Goods 12 (26) (17) 11 74

To Our Shareholders Our Share adidas Group First Half Year Report 2009 11

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 11 - ad09Q2_En.indd adidas AG share price increases in second quarter Share price development in 2009 1) Stable dividend paid In line with general market conditions, our share price At the Annual General Meeting on May 7, 2009, shareholders increased at the beginning of the second quarter of 2009 approved the adidas AG Executive and Supervisory Boards’ and throughout April mainly due to increasing optimism from € 0.50 per share dividend recommendation for the financial Dec. 31, 2008 June 30, 2009 market participants. The announcement of our first quarter year 2008 (2007: € 0.50). The dividend was paid on May 8, 2009. results on May 5, which were below analysts’ expectations, Based on the number of shares outstanding at the time of the negatively impacted our share price on the day and immedi- Annual General Meeting, this represents a dividend payout ately following the announcement. However, from mid-May 120 of € 97 million (2007: € 99 million). The decrease is due to onwards the adidas AG share started to increase again. Our the reduction of shares outstanding after last year’s share expectations to further extend our market leadership in the buyback. This represents a payout ratio of 15% versus 18% in football category in 2010 and several analyst upgrades fur- 2007 and follows our dividend policy, under which the adidas ther supported increases of our share price. The favourable 100 Group intends to pay out between 15 and 25% of consolidated momentum was also backed by forward-looking economic net income. indicators signalling a turnaround in the macroeconomic environment. Accordingly, the adidas AG share finished the 80 Directors’ dealings reported on corporate website quarter at € 27.10, representing an increase of 8% compared The purchase or sale of adidas AG shares (ISIN DE0005003404) to the end of March 2009. During the three-month period, the or related financial instruments, as defined by § 15a WpHG, DAX-30 gained 18%, whereas the MSCI World Textiles, Apparel conducted by members of our Executive or Supervisory Boards, & Luxury Goods Index improved by 24%. Our share did not fully 60 by key executives or by any person in close relationship with match the general market performance due to the shortfall of adidas AG these persons, is reported on our website www.adidas-Group. the Group’s first quarter results versus market expectations. DAX-30 com/directors_dealings. No directors’ dealings notifications were MSCI World Textiles, Apparel & Luxury Goods received in the second quarter of 2009. 1) Index: December 31, 2008 = 100. Number of ADRs decreases Changes in shareholder base The number of Level 1 ADRs (American Depository Receipts) In the second quarter of 2009, the Group received three voting at the end of the second quarter decreased significantly com- Shareholder rights notifications received rights notifications according to § 21, section 1 of the German pared to the end of the first quarter. At June 30, 2009, 4.8 mil- in second quarter 2009 Securities Trading Act (Wertpapierhandelsgesetz – WpHG) lion ADRs were outstanding (March 31, 2009: 8.9 million). This listed in the adjacent table. also represents a decline compared to the prior year level of Date of Notifying Threshold Voting rights of total Date of 12.8 million ADRs outstanding. The Level 1 ADR closed the notification party crossed shares outstanding change quarter at US$ 19.10, reflecting a virtually unchanged price in comparison to the end of December 2008, but a signifi- Apr. 21, UBS AG > 3% 6,248,659 Apr. 15, cant increase of 17% compared to the end of the first quarter 2009 (3.23%) 2009 of 2009. Apr. 23, UBS AG < 3% 1,580,086 Apr. 20, 2009 (0.82%) 2009 June 11, Euro Pacific > 5% 9,696,414 June 8, 2009 Growth Fund (5.01%) 2009 The above information is based on notifications in accordance with § 21 German Securities Trading Act (Wertpapierhandelsgesetz – WpHG) received and published by adidas AG in the second quarter of 2009. Voting rights notifications published by adidas AG can be viewed on our corporate website at www.adidas-Group.com/en/investor/statutory_publications.

To Our Shareholders Our Share adidas Group First Half Year Report 2009 12

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 12 - ad09Q2_En.indd Group Business Performance Economic and Sector Development Quarterly consumer confidence development by region

In the first half of 2009, theadidas Group re- Downturn in global economic activity continues sults were negatively impacted by significantly The downturn in global economic activity continued in the Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 slowing consumer demand and high levels of second quarter of 2009. Lower manufacturing and industrial output was the primary contributor to declining global GDP. 1) promotional activity due to the adverse macro USA 51.0 61.4 38.6 26.9 49.3 Rising unemployment put increased pressure on consumers. Euro Zone 2) (17) (19) (31) (34) (25) economic climate. Currency-neutral Group In Europe, a further interest rate reduction to a new record Japan 3) 32.6 31.4 26.2 28.9 37.6 low of 1.0% had negligible impact on the overall economic sales decreased 7% as a result of declines in 1) Source: Conference Board. situation. The region’s emerging markets also showed con- 2) Source: European Commission. all segments. In euro terms, adidas Group tinued signs of economic weakness. In Russia, the economy 3) Source: Economic and Social Research Institute, Government of Japan. revenues decreased 2% to € 5.034 billion from slumped into a deeper recession, though rising oil and commodity prices helped to ease the decrease towards the end € 5.142 billion in 2008. The Group’s gross 1) of the quarter. In the USA, the declines in manufacturing and Exchange rate development margin declined 4.6 percentage points to 45.1% construction activity were not as severe as in prior quarters. € 1 equals (2008: 49.6%), mainly driven by higher input However, unemployment increased further during the three- costs, currency devaluation effects as well as a month period, albeit at a slower pace than in the first quarter. Average Average In Asia, the economic environment improved noticeably. Fol- rate 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 rate 2009 2) highly promotional retail environment. Conse- lowing a recovery in exports, the Japanese economy developed quently, the Group’s gross profit declined 11% slightly better than in prior quarters. In China, government USD 1.4702 1.4303 1.3917 1.3308 1.4134 1.3327 GBP 0.7956 0.7903 0.9525 0.9308 0.8521 0.8946 stimulus supporting domestic demand resulted in strong GDP to € 2.269 billion in the first half of 2009 versus JPY 152.39 150.47 126.14 131.17 135.51 127.20 growth in the quarter, although exports remained weak. In € 2.552 billion in 2008. The Group’s operating Latin America, falling domestic and external demand as well 1) Spot rates at quarter-end. 2) Average rate for the first half year. margin decreased 7.0 percentage points to as growing unemployment contributed to declining GDP in the 2.6% from 9.5% in 2008, due to the lower gross region. margin as well as higher other operating Sporting goods industry affected by price-sensitive expenses as a percentage of sales. The Group’s consumer spending operating profit declined 74% to € 129 million The challenging global macroeconomic environment, cautious consumer demand and high levels of promotional activity con- in the first half of 2009 versus € 490 million in tinued to impact the development of the global sporting goods 2008. The Group’s net income attributable to industry in the second quarter of 2009. Sporting goods sales shareholders decreased 95% to € 13 million in Europe were negatively affected by increasing unemployment rates that led to cautious consumer spending. The non- from € 286 million in 2008. Diluted earnings recurrence of prior year sales related to the UEFA EURO 2008™ per share decreased 93% to € 0.10 in the first added to the general industry slowdown. In the USA, sporting half of 2009 versus € 1.35 in 2008. goods sales showed signs of stabilisation. Nevertheless, the retail climate continued to be challenging with the consumer remaining price sensitive. In Asia, growth of the sporting goods industry continued to decelerate significantly compared to the fast-paced expansion over the last couple of years. In China, sporting goods sales were negatively impacted by the clearance of excess inventories accumulated in the aftermath of the Olympic Games. The Japanese sporting goods market suffered from the sharp economic recession. In Latin America, despite a slowdown in growth, the sporting goods industry remained resilient against the worsening macroeconomic climate.

Interim Group Management Report Group Business Performance — Economic and Sector Development adidas Group First Half Year Report 2009 13

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 13 - ad09Q2_En.indd Income Statement In euro terms, adidas sales decreased 4% in the second quar- First half year net sales ter of 2009 to € 1.750 billion from € 1.818 billion in 2008. Sales € in millions Consolidation of new businesses impacts Reebok at Reebok declined 4% to € 449 million versus € 469 million and TaylorMade-adidas Golf results in the prior year. TaylorMade-adidas Golf sales in euro terms 2005 1) 3,190 In the first half of 2009, the performance of the adidas Group grew 13% to € 255 million from € 226 million in 2008. HQ/Con- 2006 2) 4,887 was impacted by the consolidation of new companies in Latin solidation sales decreased 54% to € 3 million from € 7 million America in the Reebok segment and of Ashworth, Inc. in the in the prior year. 2007 4,938 TaylorMade-adidas Golf segment. Effective April 1, 2008, 2008 5,142 the adidas Group acquired 99.99% of the shares of Reebok adidas Group currency-neutral sales decline 7% in first half 2009 5,034 Productos Esportivos Brazil Ltda. (formerly Comercial In the first half of 2009, Group revenues decreased 7% on Vulcabras Ltda.), the distribution company for Reebok prod- a currency-neutral basis, as a result of lower sales in all 1) Figure reflects continuing operations as a result of the divestiture of the Salomon ucts in Brazil and Paraguay. Effective June 2, 2008, Reebok business segments. The adidas segment decreased 8%, the business segment in 2005. also founded a new company in Argentina, in which the adidas Reebok segment 6% and the TaylorMade-adidas Golf segment 2) Including Reebok business segment from February 1, 2006 onwards. Including Group holds 99.99% of the shares. Ashworth Inc., a leader in 1%. Currency translation effects positively impacted sales Greg Norman apparel business from February 1, 2006 to November 30, 2006. cotton casual golf apparel, has been consolidated within the in euro terms. Group revenues in euro terms declined 2% to adidas Group since November 20, 2008. € 5.034 billion in the first half of 2009 from € 5.142 billion in 1) 2008. First half year net sales by segment adidas Group currency-neutral sales decrease 8% in Q2

During the second quarter of 2009, Group sales declined 8% Currency-neutral revenues decline in all product categories on a currency-neutral basis. Currency movements posi- Currency-neutral Group sales declined in all categories in the TaylorMade- adidas Golf 9% tively impacted Group sales in euro terms. Group revenues first half of 2009. Currency-neutral footwear sales decreased decreased 3% in euro terms to € 2.457 billion in the second 6% during the period driven by declines in all segments. First quarter of 2009 from € 2.521 billion in 2008. half apparel sales decreased 6% on a currency-neutral basis, adidas 73% due to declines in the adidas and Reebok segments. The Lower consumer demand leads to decline in TaylorMade-adidas Golf segment grew due to the consolidation nearly all segments in Q2 of the Ashworth business. Currency-neutral hardware sales Reebok 18% In the second quarter of 2009, sales declined in all segments declined 16% compared to the prior year, due to decreases in with the exception of TaylorMade- adidas Golf. Currency-neutral the adidas and TaylorMade-adidas Golf segments, while sales adidas segment revenues decreased 9%. Growth in North in the Reebok segment were stable. 1) HQ /Consolidation accounts for less than 1% of sales. America and in Latin America was offset by declines in most major European and Asian markets. Currency-neutral sales In euro terms, footwear sales decreased 1% to € 2.357 billion in the Reebok segment decreased 9% in the second quarter of in the first half of 2009 (2008: € 2.392 billion). Apparel sales 2009 versus the prior year due to negative sales development were almost stable at € 2.183 billion (2008: € 2.186 billion). in most major markets. At TaylorMade- adidas Golf, currency- Hardware sales decreased 12% to € 495 million in the first half neutral revenues increased 3%, driven by growth in nearly all of 2009 from € 564 million in 2008. regions and supported by the consolidation of the Ashworth business. Sales recorded in the HQ/Consolidation segment, which reflect revenues not attributable to theadidas, Reebok or TaylorMade-adidas Golf segments, decreased 57% currency- neutral in the second quarter. HQ/Consolidation accounts for less than 1% of Group sales.

Interim Group Management Report Group Business Performance — Income Statement adidas Group First Half Year Report 2009 14

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 14 - ad09Q2_En.indd Currency-neutral sales decrease in nearly all regions First half year currency-neutral net sales growth 1) Gross margin negatively impacted by higher input costs Currency-neutral adidas Group sales declined in all regions by segment and region in % The gross margin of the adidas Group decreased 4.6 percent- except Latin America in the first half of 2009. Group sales age points to 45.1% in the first half of 2009 (2008: 49.6%). This in Europe decreased 8% on a currency-neutral basis, due development was mainly due to higher input costs, currency North Latin to declines in most major countries impacted by the non- Europe America Asia America Total devaluation effects, in particular related to the Russian rouble, recurrence of strong prior year sales related to the UEFA as well as a highly promotional retail environment. As a result, EURO 2008™. In North America, Group sales decreased 10% adidas (9) (13) (9) 18 (8) gross profit for the adidas Group declined 11% in the first half on a currency-neutral basis due to declines in both the USA Reebok (6) (15) (6) 51 (6) of 2009 to € 2.269 billion versus € 2.552 billion in the prior year. and Canada. This was a result of lower consumer demand and TaylorMade- clearance of excess inventories. Sales for the adidas Group in adidas Golf 16 4 (15) 8 (1) Currency-neutral royalty and commission income stable Asia decreased 9% on a currency-neutral basis, as a result of Total (8) (10) (9) 24 (7) Royalty and commission income for the adidas Group was declines in Japan and China. In Latin America, sales grew 24% 1) Versus the prior year. stable on a currency-neutral basis. Growth in royalties in the on a currency-neutral basis, with double-digit increases com- adidas segment, related to higher average royalty rates, offset ing from most of the region’s major markets, supported by the the non-recurrence of royalties from distribution partners in new Reebok companies in Brazil/Paraguay and Argentina. First half year net sales growth in € 1) the Reebok segment in Brazil/Paraguay and Argentina. The by segment and region in % distribution partnerships in these countries were replaced by In euro terms, sales in Europe decreased 9% to € 2.143 billion own companies whose sales were consolidated for the first in the first half of 2009 from € 2.352 billion in 2008. Sales in North Latin time effective April and June 2008, respectively. In euro terms, North America grew 1% to € 1.173 billion from € 1.160 billion Europe America Asia America Total royalty and commission income increased 7% to € 44 million in in 2008. Revenues in Asia grew 3% to € 1.245 billion in the first the first half of 2009 from € 41 million in the prior year. half of 2009 from € 1.214 billion in 2008. Sales in Latin America adidas (9) (1) 4 10 (3) grew 16% to € 443 million from € 381 million in the prior year. Reebok (7) (5) (2) 43 (2) Other operating income grows 24% TaylorMade- Other operating income increased 24% to € 48 million in the adidas Golf 2 16 (3) 10 8 first half of 2009 from € 39 million in 2008. This development is Total (9) 1 3 16 (2) mainly due to the release of accruals for personnel costs from 1) Versus the prior year. 2008.

First half year net sales by region 1)

Europe 43% Latin America 9%

North America 23% Asia 25%

1) Excluding HQ /Consolidation.

Interim Group Management Report Group Business Performance — Income Statement adidas Group First Half Year Report 2009 15

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 15 - ad09Q2_En.indd Higher other operating expenses as a percentage of sales First half year gross profit Financial income down 55% Other operating expenses as a percentage of sales increased € in millions Financial income decreased 55% to € 7 million in the first 2.7 percentage points to 44.3% in the first half of 2009 from half of 2009 from € 16 million in the prior year, mainly due to 41.7% in 2008, mainly as a result of higher expenses to support 2008 2,552 changes in the fair value of financial instruments. the Group’s development in emerging markets. Costs related 2009 2,269 to restructuring, higher allowances for doubtful debts and Financial expenses increase 15% the integration of the Ashworth business also contributed to Financial expenses increased 15% to € 99 million in the first this development. In euro terms, other operating expenses half of 2009 (2008: € 87 million). This development was pri increased 4% to € 2.232 billion in the first half of 2009 from marily due to negative exchange rate variances, which were € 2.142 billion in the prior year. First half year other operating income only partly offset by lower interest expenses. € in millions Global employee base grows due to own-retail expansion On June 30, 2009, the Group had 38,935 employees, which 2008 39 represents an increase of 12% versus 34,834 in the previous 2009 48 year. This development is primarily related to new employees in adidas and Reebok own retail, mainly on a part-time basis. Compared to the end of 2008, the number of employees was almost stable. An increase in the number of employees in First half year other operating expenses own retail was more than offset by restructuring initiatives at Reebok and TaylorMade-adidas Golf and the effects of the € in millions implementation of a hiring freeze throughout the adidas Group. 2008 2,142 Operating margin declines 7.0 percentage points 2009 2,232 The operating margin of the adidas Group decreased 7.0 percentage points to 2.6% in the first half of 2009 (2008: 9.5%). The operating margin decline was due to the decrease in Group gross margin as well as higher other operating expenses First half year operating profit as a percentage of sales. As a result, Group operating profit € in millions decreased 74% to € 129 million versus € 490 million in 2008. 2008 490

2009 129

Interim Group Management Report Group Business Performance — Income Statement adidas Group First Half Year Report 2009 16

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 16 - ad09Q2_En.indd First half year income before taxes Income before taxes decreases 91% Minority interests down € in millions Income before taxes (IBT) as a percentage of sales decreased The Group’s minority interests decreased to negative € 1 mil- 7.4 percentage points to 0.7% in the first half of 2009 from lion in the first half of 2009 from positive € 1 million in 2008. 2008 419 8.1% in 2008. This was a result of the Group’s operating margin The decline was primarily due to the buyout of the Reebok joint decrease and higher net financial expenses. IBT for the adidas venture partner in Spain, effective January 2009. 2009 37 Group declined 91% to € 37 million from € 419 million in 2008. Basic and diluted earnings per share decrease

Net income attributable to shareholders declines 95% 95% and 93% respectively The Group’s net income attributable to shareholders decreased Basic earnings per share decreased 95% to € 0.07 in the first First half year net income attributable to shareholders 95% to € 13 million in the first half of 2009 from € 286 million half of 2009 versus € 1.42 in 2008. The weighted average € in millions in 2008. The Group’s lower operating profit was the primary number of shares used in the calculation of basic earnings per reason for this development. The Group’s tax rate increased share decreased to 193,515,512 in the first half of 2009 (2008 2005 1) 171 35.3 percentage points to 66.8% in the first half of 2009 (2008: average: 200,415,758) due to the share buyback programme 2006 2) 226 31.5%), mainly due to a less favourable regional earnings mix. from January to October 2008. Diluted earnings per share in the first half of 2009 decreased 93% to € 0.10 from € 1.35 in 2007 232 the prior year. The weighted average number of shares used in 2008 286 the calculation of diluted earnings per share was 209,259,974 2009 13 (2008 average: 216,211,434). The dilutive effect largely results from approximately sixteen million additional potential shares

1) Includes continuing and discontinued operations. that could be created in relation to our outstanding convertible 2) Including Reebok business segment from February 1, 2006 onwards. Including bond, for which conversion criteria were first met at the end of Greg Norman apparel business from February 1, 2006 to November 30, 2006. the fourth quarter of 2004.

Interim Group Management Report Group Business Performance — Income Statement adidas Group First Half Year Report 2009 17

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 17 - ad09Q2_En.indd Balance Sheet and Cash Flow Statement Balance sheet structure 1) Balance sheet structure 1) in % of total assets in % of total liabilities and equity Total assets increase 8% At the end of June 2009, total assets increased 8% to € 9.407 bil- Assets June 30, 2009 June 30, 2008 Liabilities and equity June 30, 2009 June 30, 2008 lion versus € 8.679 billion in the prior year. This was the result of an increase in both current and non-current assets. Compared to December 31, 2008, total assets decreased 1%. Cash and cash equivalents 1.9 Short-term borrowings 6.4 3.4 4.3 Accounts receivable 18.4 Accounts payable 11.3 10.7 Group inventories up 13% 18.9 Group inventories increased 13% to € 2.041 billion at the end Long-term borrowings 25.9 of June 2009 versus € 1.806 billion in 2008. On a currency- Inventories 21.7 25.6 20.8 neutral basis, inventories grew 8%. This development was mainly a result of accelerated product shipments to Brazil Other liabilities 22.5 and Argentina due to the threat of higher import tariffs. Lower Fixed assets 42.6 27.6 customer demand compared to our expectations when plan- 41.4 ning production for the first half of 2009 and the consolidation of the Ashworth business since November 2008 also contrib- Total equity 33.9 31.8 uted to the increase. Other assets 15.4 15.5

Accounts receivable increase 5% At the end of June 2009, Group receivables increased 5% to Total assets Total liabilities and € 1.729 billion (2008: € 1.641 billion). On a currency-neutral (€ in millions) 9,407 8,679 equity (€ in millions) 9,407 8,679 basis, receivables grew 4%. This increase reflects slower 1) For absolute figures see Consolidated Balance Sheet, p. 30. 1) For absolute figures see Consolidated Balance Sheet, p. 30. receipt of payments due to the difficult economic situation in most markets.

Other current financial assets up 33% Other current financial assets increased 33% to € 157 million at the end of June 2009 from € 117 million at the end of June 2008. This development was mainly due to higher security deposits related to the additional retail stores, as well as higher fair values of financial instruments.

Other current assets down 10% Other current assets decreased 10% to € 467 million at the end of June 2009 from € 520 million in 2008, mainly as a result of a decrease in prepayments.

Interim Group Management Report Group Business Performance — Balance Sheet and Cash Flow Statement adidas Group First Half Year Report 2009 18

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 18 - ad09Q2_En.indd Inventories 1) Fixed assets increase 12% Accrued liabilities decrease 18% € in millions Fixed assets increased 12% to € 4.011 billion at the end of June Accrued liabilities decreased 18% to € 580 million at the end of 2009 versus € 3.597 billion at the end of June 2008. This was June 2009 compared to € 707 million at the end of June 2008, 2008 1,806 primarily the result of positive currency translation effects in due to timing of payments. an amount of € 256 million on fixed assets denominated in 2009 2,041 currencies other than the euro. Continued own-retail expan- Shareholders’ equity grows 16% sion, investment into the Group’s IT infrastructure as well Shareholders’ equity rose 16% to € 3.189 billion at the end of 1) At June 30. as the acquisition of Ashworth, Inc. and Textronics, Inc. also June 2009 versus € 2.746 billion at the end of June 2008. The impacted this development. Additions of € 486 million were net income generated during the last twelve months and posi- partly offset by depreciation and amortisation of € 263 million tive currency translation effects in an amount of € 243 million Receivables 1) as well as disposals in an amount of € 65 million. Compared to more than offset the buyback of adidas AG shares. Compared € in millions December 31, 2008, fixed assets decreased 2%. to December 31, 2008, shareholders’ equity decreased 6%.

2008 1,641 Assets held-for-sale decrease 50% Cash flow development reflects increased 2009 1,729 At the end of June 2009, assets held-for-sale decreased 50% working capital needs to € 27 million (2008: € 54 million). The decline mainly related In the first half of 2009, cash outflow from operating activities 1) At June 30. to the transfer of assets held-for-sale to fixed assets. At the was € 366 million (2008: inflow of € 17 million). The increase end of June 2009, assets held-for-sale mainly related to ware- in cash used in operating activities compared to the prior year houses for sale in the UK and in the USA. was primarily due to higher working capital needs. Cash out- Accounts payable 1) flow for investing activities was € 63 million (2008: € 85 mil- € in millions Accounts payable grow 14% lion) and was mainly related to spending for property, plant and Accounts payable increased 14% to € 1.060 billion at the end equipment such as investments in the furnishing and fitting of 2008 928 of June 2009 versus € 928 million at the end of June 2008. On adidas and Reebok own-retail stores and in IT systems. Cash a currency-neutral basis, accounts payable were up 6%. This inflows from financing activities were related to an increase 2009 1,060 development was mainly a result of a higher volume of inven in long-term borrowings in an amount of € 845 million. Cash tories at the end of the first half of 2009. outflow in an amount of € 384 million led to a corresponding 1) At June 30. change in short-term borrowings. Dividends paid in an amount Other current financial liabilities decrease 19% of € 97 million also impacted this development. Consequently, Other current financial liabilities decreased 19% to € 111 mil- net cash provided by financing activities totalled € 364 million Shareholders’ equity 1) lion at the end of June 2009 from € 138 million at the end (2008: € 72 million). As a result of this development, cash and € in millions of June 2008, primarily due to a decrease in the fair value of cash equivalents decreased by € 68 million to € 176 million at hedging instruments. the end of June 2009 (December 31, 2008: € 244 million). 2008 2,746

2009 3,189 Net borrowings up € 472 million Net borrowings at June 30, 2009 amounted to € 2.732 bil- 1) At June 30, excluding minority interests. lion, which represents an increase of € 472 million, or 21%, versus € 2.260 billion at the end of June 2008. Higher working capital requirements were the main reason for the net debt Net borrowings 1) increase. In addition, since June 30, 2008, cash in an amount € in millions of € 136 million has been used for the meanwhile completed share buyback programme. Currency translation effects nega- 2008 2,260 tively impacted net borrowings by an amount of € 110 million. Consequently, the Group’s financial leverage increased to 2009 2,732 85.7% at the end of June 2009 versus 82.3% in the prior year.

1) At June 30.

Interim Group Management Report Group Business Performance — Balance Sheet and Cash Flow Statement adidas Group First Half Year Report 2009 19

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 19 - ad09Q2_En.indd adidas Business Performance adidas at a glance First half currency-neutral segment sales decline 8% € in millions Revenues for the adidas segment declined 8% on a currency- In the first half of 2009, currency-neutral sales neutral basis in the first half of 2009. Currency-neutral foot- in the adidas segment decreased 8%. In wear, apparel and hardware sales all decreased compared to 1st half year 1st half year euro terms, segment sales declined 3% to 2009 2008 Change the prior year. In euro terms, segment sales declined 3% to € 3.667 billion in the first half of 2009 from € 3.787 billion in € 3.667 billion from € 3.787 billion in the prior Net sales 3,667 3,787 (3%) 2008. year. Gross margin decreased 2.0 percentage Gross profit 1,713 1,843 (7%) points to 46.7% (2008: 48.7%). This was mainly Gross margin 46.7% 48.7% (2.0pp) Currency-neutral adidas sales decline in nearly all regions Operating profit 416 512 (19%) Currency-neutral sales for the adidas segment in the first half a result of higher input costs, currency devalua- Operating margin 11.3% 13.5% (2.2pp) of 2009 decreased in all regions except Latin America. Rev- tion effects as well as a highly promotional enues in Europe decreased 9% on a currency-neutral basis, retail environment. Gross profit decreased 7% mainly due to the non-recurrence of strong prior year sales First half year adidas net sales related to the UEFA EURO 2008™ and difficult conditions in to € 1.713 billion in the first half of 2009 from € in millions most major European countries. Currency-neutral adidas sales € 1.843 billion in the first half of 2008. As a in North America decreased 13% due to declines in both the result of the decline in gross margin and higher 2005 2,816 USA and Canada. Sales in Asia decreased 9% on a currency- neutral basis, driven by declines in Japan and China. In Latin 2006 3,308 net other operating expenses and income as America, currency-neutral sales grew 18%, driven by double- a percentage of sales, operating margin 2007 3,454 digit increases in all major markets. decreased 2.2 percentage points to 11.3% 2008 3,787 In euro terms, sales in Europe decreased 9% to € 1.789 billion 2009 3,667 (2008: 13.5%). Operating profit declined 19% to in the first half of 2009 from € 1.976 billion in 2008. Revenues € 416 million in the first half of 2009 versus in North America decreased 1% to € 517 million in the first

€ 512 million in 2008. half of 2009 from € 524 million in 2008. Sales in Asia increased 4% to € 997 million in the first half of 2009 from € 959 million in 2008, and revenues in Latin America improved 10% to € 339 million in the first half of 2009 versus € 307 million in Second quarter 2009 currency-neutral sales down 9% the prior year. In the second quarter of 2009, revenues for the adidas segment decreased 9% on a currency-neutral basis. Growth in the Sport Performance declines 11% on a currency-neutral basis Sport Style division could not offset declines in major sports Sales in the Sport Performance division decreased 11% on a categories. In euro terms, sales were down 4% to € 1.750 bil- currency-neutral basis in the first half of 2009. The football lion from € 1.818 billion in the prior year. category was notably impacted by the non-recurrence of strong prior year sales in connection with the UEFA EURO 2008™. This development was partially offset by an increase in the outdoor category. In euro terms, Sport Performance sales declined 7% in the first half of 2009 to € 2.856 billion from € 3.058 billion in the prior year.

Interim Group Management Report adidas Business Performance adidas Group First Half Year Report 2009 20

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 20 - ad09Q2_En.indd Currency-neutral Sport Style sales increase 13% adidas net sales by region Royalty and commission income increases 15% Sales in the Sport Style division increased 13% on a currency- € in millions In the first half of 2009, adidas royalty and commission income neutral basis in the first half of 2009. The increase was driven grew 15% in euro terms to € 46 million (2008: € 40 million). by strong momentum in the recently launched Style Essentials This was mainly a result of higher average royalty rates. Change collection, as well as an increase in all other Sport Style cate- 1st half year 1st half year currency- Royalty and commission income relates to items such as gories. In euro terms, Sport Style sales grew 16% to € 815 mil- 2009 2008 Change neutral cosmetics, watches and eyewear. lion in the first half of 2009 (2008: € 705 million). Europe 1,789 1,976 (9%) (9%) Net other operating expenses and income up North America 517 524 (1%) (13%) Currency-neutral own-retail sales up 5% 0.4 percentage points Asia 997 959 4% (9%) In the first half of 2009, adidas own-retail sales increased 5% Net other operating expenses and income as a percentage of Latin America 339 307 10% 18% on a currency-neutral basis. In euro terms, revenues grew 13% sales in the adidas segment increased 0.4 percentage points to to € 736 million from € 653 million in 2008. This increase was 36.6% (2008: 36.2%). Cost reduction measures and the timing due to new store openings. Comparable store sales declined of marketing spending partially offset increased expenses to at a double-digit rate during the period. adidas own-retail adidas net sales by quarter support the segment’s development in emerging markets, in activities made up 20% of adidas brand sales in the first half € in millions particular the expansion of own retail. In euro terms, net other of 2009, up from 17% in the prior year. operating expenses and income decreased 2% to € 1.343 bil- Q1 2008 1,968 lion in the first half of 2009 from € 1.371 billion in 2008. Gross margin negatively impacted by higher input costs Q1 2009 1,917 The adidas segment gross margin decreased 2.0 percentage Operating margin decreases to 11.3% Q2 2008 1,818 points to 46.7% in the first half of 2009 from 48.7% in 2008. In the first half of 2009, the adidas operating margin decreased Q2 2009 1,750 This was mainly due to higher input costs, currency devaluation 2.2 percentage points to 11.3% (2008: 13.5%). This was mainly effects, in particular related to the Russian rouble, as well as a Q3 2008 2,218 a result of the gross margin decline and higher net other oper- highly promotional retail environment. As a result, adidas gross Q3 2009 ating expenses and income as a percentage of sales. Operating profit declined 7% to € 1.713 billion in the first half of 2009 ver- profit for the adidas segment decreased 19% to € 416 million sus € 1.843 billion in 2008. Q4 2008 1,817 in the first half of 2009 versus € 512 million during the same Q4 2009 period in the prior year.

adidas operating profit by quarter € in millions

Q1 2008 336 Q1 2009 228

Q2 2008 175 Q2 2009 188

Q3 2008 439 Q3 2009

Q4 2008 147 Q4 2009

Interim Group Management Report adidas Business Performance adidas Group First Half Year Report 2009 21

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 21 - ad09Q2_En.indd Reebok Business Performance Reebok at a glance Second quarter currency-neutral sales decline 9% € in millions In the second quarter of 2009, revenues for the Reebok seg- In the first half of 2009, currency-neutral sales ment decreased 9% on a currency-neutral basis, driven by for the Reebok segment decreased 6%. In euro declines in all regions with the exception of Latin America. 1st half year 1st half year terms, segment sales were down 2% to 2009 2008 Change In euro terms, sales decreased 4% to € 449 million from € 469 million in the prior year. € 907 million from € 923 million in the prior Net sales 907 923 (2%) year. The gross margin of the Reebok segment Gross profit 283 361 (22%) First half sales decrease 6% on a currency-neutral basis declined 8.0 percentage points to 31.2% in the Gross margin 31.2% 39.2% (8.0pp) In the first half of 2009, sales for the Reebok segment declined Operating profit (147) (24) (515%) 6% on a currency-neutral basis. Currency-neutral hardware first half of 2009 from 39.2% in 2008. This was Operating margin (16.2%) (2.6%) (13.6pp) sales were stable, but footwear and apparel sales decreased mainly a result of higher input costs, currency compared to the prior year. Sales in euro terms decreased 2% devaluation effects as well as a highly promo- to € 907 million in the first half of 2009 from € 923 million in First half year Reebok net sales 2008. tional retail environment. Gross profit de- € in millions creased 22% to € 283 million in the first half of Currency-neutral sales decline in nearly all regions 2009 versus € 361 million in 2008. Reebok’s 2006 1) 1,050 Currency-neutral Reebok segment sales decreased in all regions except Latin America in the first half of 2009. In 2007 1,038 operating margin declined by 13.6 percentage Europe, currency-neutral sales declined 6%, primarily driven points to negative 16.2% in the first half of 2009 2008 923 by a decline in Spain. Currency-neutral revenues in North from negative 2.6% in the prior year. This was 2009 907 America decreased 15% as a result of declines in both the USA and Canada. In Asia, currency-neutral sales decreased due to the decline in gross margin and the 1) Only includes five months of the six-month period. 6%. Growth in Japan and India was more than offset by a sales increase in net other operating expenses and decline in China due to the rationalisation of Reebok’s busi- income as a percentage of sales. This develop- ness in that market. Currency-neutral sales in Latin America increased 51% due to the consolidation of Reebok’s new ment was also impacted by restructuring companies. charges of € 24 million. As a result, Reebok’s operating profit decreased to negative In euro terms, segment sales in Europe decreased 7% to € 291 million in the first half of 2009 from € 314 million in € 147 million in the first half of 2009 versus 2008. In North America, revenues declined 5% to € 398 million negative € 24 million in the prior year. in the first half of 2009 from € 417 million in 2008. Sales in Asia decreased 2% to € 118 million in the first half of 2009 (2008: € 121 million), and in Latin America revenues increased 43% to Consolidation of new businesses impacts Reebok results € 101 million in the first half of 2009 (2008: € 71 million). In the first half of 2009, the performance of theReebok segment was supported by the consolidation of new companies in Latin America. Effective April 1, 2008, the adidas Group acquired 99.99% of the shares of Reebok Productos Esportivos Brazil Ltda. (formerly Comercial Vulcabras Ltda.), the distribution company for Reebok products in Brazil and Paraguay. Effective June 2, 2008, Reebok also founded a new company in Argentina, in which the adidas Group holds 99.99% of the shares.

Interim Group Management Report Reebok Business Performance adidas Group First Half Year Report 2009 22

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 22 - ad09Q2_En.indd Currency-neutral sales of brand Reebok decline 7% Reebok net sales by region Royalty and commission income decreases Brand Reebok sales decreased 7% in the first half of 2009 € in millions In the first half of 2009, Reebok royalty and commission income on a currency-neutral basis. Double-digit growth in the declined 16% to € 11 million from € 13 million in the prior year. women’s footwear and walking categories was more than The decline was largely due to the non-recurrence of royalties Change offset by declines in most other categories. In euro terms, 1st half year 1st half year currency- from distribution partners in Brazil/Paraguay and Argentina. sales declined 2% to € 724 million (2008: € 740 million). 2009 2008 Change neutral The distribution partnerships in these countries were replaced

by own companies whose sales were consolidated for the first Europe 291 314 (7%) (6%) Currency-neutral sales of Reebok-CCM Hockey decrease 3% time in the second quarter of 2008. Reebok’s royalty and com- North America 398 417 (5%) (15%) Sales of Reebok-CCM Hockey declined 3% on a currency- mission income primarily relates to royalty income for fitness Asia 118 121 (2%) (6%) neutral basis in the first half of 2009 mainly due to lower equipment. Latin America 101 71 43% 51% licensed business sales. In euro terms, sales decreased 3% to € 68 million in the first half of 2009 versus € 70 million Net other operating expenses and income increase in the prior year. Net other operating expenses and income as a percentage Reebok net sales by quarter of sales increased by 5.4 percentage points to 48.6% in the Rockport sales decrease 6% on a currency-neutral basis € in millions first half of 2009 versus 43.2% in 2008. This development was Rockport sales decreased 6% on a currency-neutral basis in mainly due to restructuring charges of € 24 million and con- the first half of 2009. Growth in Europe was offset by declines Q1 2008 454 tinued own-retail expansion that could not be offset by cost in North America, mainly due to sales declines in department Q1 2009 458 reduction measures. Restructuring charges in the first half stores. In euro terms, Rockport revenues increased 2% to were related to headcount reductions in several regions and Q2 2008 469 € 115 million in the first half of 2009 (2008: € 113 million). costs in connection with the implementation of joint operating Q2 2009 449 models for adidas and Reebok in Europe and Latin America. In Currency-neutral own-retail sales grow 6% Q3 2008 665 euro terms, Reebok’s net other operating expenses and income In the first half of 2009, Reebok own-retail sales grew 6% on a Q3 2009 increased 11% to € 441 million in the first half of 2009 from currency-neutral basis. In euro terms, revenues increased 15% € 399 million in the prior year. to € 186 million from € 162 million in 2008. The increase was Q4 2008 561 driven by new store openings in emerging markets, especially Q4 2009 Lower operating margin Russia. Comparable store sales declined at a mid-single-digit In the first half of 2009, the operating margin of the Reebok rate during the period. Reebok own-retail activities made up segment decreased by 13.6 percentage points to negative 20% of Reebok segment sales in the first half of 2009, up from 16.2% from negative 2.6% in the prior year. This was due to the 18% in the prior year. The share of own-retail activities as Reebok operating profit by quarter lower gross margin and higher net other operating expenses a percentage of brand sales at Rockport continues to be above and income as a percentage of sales. As a result, Reebok’s € in millions the segment average. operating profit decreased to negative € 147 million in the first Q1 2008 (13) half of 2009 versus negative € 24 million in the prior year. Reebok segment gross margin declines 8.0 percentage points Q1 2009 (96) The gross margin of the Reebok segment decreased 8.0 percentage points to 31.2% in the first half of 2009 from 39.2% in Q2 2008 (11) 2008. The segment gross margin was negatively affected by Q2 2009 (51) higher input costs, currency devaluation effects, in particular related to the Russian rouble, as well as a highly promotional Q3 2008 25 retail environment. Reebok gross profit decreased 22% to Q3 2009 € 283 million in the first half of 2009 versus € 361 million in Q4 2008 (9) 2008. Q4 2009

Interim Group Management Report Reebok Business Performance adidas Group First Half Year Report 2009 23

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 23 - ad09Q2_En.indd TaylorMade-adidas Golf Business TaylorMade-adidas Golf at a glance Second quarter currency-neutral sales increase 3% In the second quarter of 2009, revenues for the TaylorMade- Performance € in millions adidas Golf segment grew 3% on a currency-neutral basis due In the first half of 2009,TaylorMade- adidas Golf to the integration of Ashworth. In euro terms, sales were up 1st half year 1st half year revenues decreased 1% on a currency-neutral 2009 2008 Change 13% to € 255 million from € 226 million in the prior year. Sales from the consolidation of Ashworth contributed € 23 million. basis. In euro terms, segment sales increased Net sales 449 417 8% 8% to € 449 million from € 417 million in Gross profit 177 194 (9%) First half currency-neutral sales decrease 1% the prior year. The segment’s gross margin Gross margin 39.4% 46.5% (7.1pp) In the first half of 2009, currency-neutral sales at TaylorMade- Operating profit (18) 43 (143%) adidas Golf decreased 1%. A decline in all major categories decreased 7.1 percentage points to 39.4% Operating margin (4.1%) 10.3% (14.4pp) could not be offset by the positive impact of the consolida- (2008: 46.5%). This was mainly a result of price tion of Ashworth and new product launches towards the end repositioning related to the highly competitive of the first quarter. Segment sales in euro terms increased 8% First half year TaylorMade-adidas Golf net sales to € 449 million in the first half of 2009 from € 417 million in environment as well as initiatives to reduce € in millions 2008. Sales from the consolidation of Ashworth contributed inventories. The consolidation of the Ashworth € 38 million. business, which carries lower margins, also 2005 351 Currency-neutral revenue growth in almost all regions 2006 1) 464 contributed to this development. Gross profit TaylorMade-adidas Golf currency-neutral sales increased in declined 9% to € 177 million (2008: € 194 mil- 2007 419 all regions except Asia in the first half of 2009. Sales in Europe lion). The segment’s operating margin de- 2008 417 increased 16% on a currency-neutral basis, driven by growth in all major markets, in particular the UK, and supported by 2009 449 creased 14.4 percentage points to negative the first-time consolidation of Ashworth. In North America, 4.1% (2008: positive 10.3%). This was due to the sales grew 4% on a currency-neutral basis mainly due to 1) Including Greg Norman apparel business from February 1, 2006 lower gross margin and higher net other oper- to November 30, 2006. the first-time consolidation of Ashworth. TaylorMade-adidas Golf currency-neutral sales in Asia declined 15%, mainly as a ating expenses and income as a percentage of result of declines in Japan and Korea. Sales in Latin America sales. As a result, operating profit decreased to increased 8% on a currency-neutral basis, driven by growth in negative € 18 million from positive € 43 million most major markets. in the first half of 2008. In euro terms, sales in Europe increased 2% to € 63 million in the first half of 2009 (2008: € 62 million). Revenues in North America increased 16% to € 252 million in the first half of 2009 Consolidation of Ashworth impacts results from € 218 million in 2008. In Asia, sales decreased 3% to In the first half of 2009, the operational performance of the € 130 million in the first half of 2009 (2008: € 134 million), and TaylorMade-adidas Golf segment was impacted by the consoli- in Latin America revenues grew 10% to € 4 million in the first dation of Ashworth, Inc. A leader in cotton casual golf apparel, half of 2009 (2008: € 4 million). Ashworth has been consolidated within the adidas Group since November 20, 2008.

Interim Group Management Report TaylorMade-adidas Golf Business Performance adidas Group First Half Year Report 2009 24

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 24 - ad09Q2_En.indd Gross margin negatively impacted by price repositioning TaylorMade-adidas Golf net sales by region Consolidation of Ashworth increases net other TaylorMade-adidas Golf gross margin decreased 7.1 percent- € in millions operating expenses and income age points to 39.4% in the first half of 2009 (2008: 46.5%). Net other operating expenses and income as a percentage The decrease was mainly a result of price repositioning due of sales at TaylorMade-adidas Golf increased 7.3 percentage Change to the promotional environment in all regions, initiatives to 1st half year 1st half year currency- points to 40.5% in the first half of 2009 from 33.2% in 2008. This reduce inventories as well as the first-time consolidation of 2009 2008 Change neutral development was mainly due to integration costs of € 11 mil- the Ashworth business, which carries a lower gross margin. lion related to the Ashworth acquisition and headcount reduc- Europe 63 62 2% 16% Purchase price allocation expenses in an amount of € 3 million tions at Ashworth. Additional marketing expenses related to North America 252 218 16% 4% also negatively impacted gross margin. Gross profit decreased the launch of the R9 driver as well as the non-recurrence of a Asia 130 134 (3%) (15%) 9% to € 177 million (2008: € 194 million). one-time book gain from the Maxfli divestiture in the prior year Latin America 4 4 10% 8% also contributed to this development. In euro terms, net other

Royalty and commission expenses increase operating expenses and income increased 31% to € 182 million In the first half of 2009, royalty and commission expenses at in the first half of 2009 from € 139 million in 2008. TaylorMade-adidas Golf increased 9% to € 13 million (2008: TaylorMade-adidas Golf net sales by quarter € 12 million). This was due to an increase in adidas Golf sales. € in millions Operating margin declines 14.4 percentage points Royalty and commission expenses at TaylorMade-adidas Golf The TaylorMade-adidas Golf operating margin decreased mainly comprise intra-Group royalty payments to the adidas Q1 2008 191 14.4 percentage points to negative 4.1% in the first half of 2009 segment related to adidas Golf sales. Q1 2009 194 from positive 10.3% in 2008. This was mainly a result of the lower gross margin and higher net other operating expenses Q2 2008 226 and income as a percentage of sales. Consequently, operat- Q2 2009 255 ing profit for TaylorMade-adidas Golf decreased to negative Q3 2008 197 € 18 million in the first half of 2009 versus positive € 43 million Q3 2009 in 2008.

Q4 2008 198 Q4 2009

TaylorMade-adidas Golf operating profit by quarter € in millions

Q1 2008 23 Q1 2009 (21)

Q2 2008 19 Q2 2009 2

Q3 2008 11 Q3 2009

Q4 2008 24 Q4 2009

Interim Group Management Report TaylorMade-adidas Golf Business Performance adidas Group First Half Year Report 2009 25

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 25 - ad09Q2_En.indd Subsequent Events and Outlook Subsequent Events Outlook

In 2009, recessionary pressures in most key Eurobond launched after end of quarter Group business outlook affected by uncertain global markets are expected to have a negative On July 6, 2009, adidas International Finance B.V., a fully owned global macroeconomic development impact on overall consumer demand and the subsidiary of adidas AG, issued a Eurobond in a total amount Expectations for the development of the global economy and of € 500 million. Proceeds from the bond issue have been used the sporting goods industry in 2009 continue to be subject to sporting goods industry. Despite our strong to partially refinance short-term bank loans and for general a high degree of uncertainty. The unprecedented slowdown in positions in most major markets, a regionally corporate purposes. The bond has a maturity of five years, economic activity recorded during past months has conse- balanced sales mix and our strength in innova- an annual coupon of 4.75% and was priced with a spread of quences currently not fully foreseeable. As a result, macro 200 basis points above the respective Euro mid-swap. The economic forecasts for 2009 given by various government tion, we expect these developments to have a issue was fixed at 99.865%. Since July 14, 2009, the notes are bodies and research institutes differ widely in their assess- negative impact on the adidas Group’s finan- listed on the Luxembourg Stock Exchange in denominations ment of how long and deep the expected economic downturn cial results in 2009. We forecast adidas Group of € 1,000 each. will be. In addition, the effect rising unemployment and lower consumer confidence could have on private consumption can- sales and earnings per share to decline versus Organisation and management changes after end of quarter not be fully assessed. Consequently, the effect global macro the prior year. However, due to a more moder- Effective July 1, 2009, the adidas Group has reorganised its economic developments could have on the adidas Group’s ate increase of input costs and positive impe- sales organisation into Wholesale and Retail. Under the new business outlook continues to be difficult to forecast. Our structure, Roland Auschel will assume responsibility for the outlook is hence based solely on the scenario of economic tus ahead of the 2010 FIFA World Cup™, second wholesale business as Chief Sales Officer. Michael Stanier will and sector development laid down in this report, acknowledg- half financial results will be better than those in lead the own-retail business as Chief Retail Officer. ing actual developments might significantly differ from this the first half of 2009, albeit below the prior year scenario. In addition, the Group announced plans to separate the respon- level. sibility between Global Brand and Global Sales management on the Board level. This measure aims to foster further alignment and strengthening of brand management, while at the same time ensuring coordinated and best practice execution in the marketplace. Herbert Hainer, adidas Group CEO and Chair- man, will additionally assume responsibility for Global Sales. Roland Auschel and Michael Stanier will report into Herbert Hainer. Erich Stamminger, Member of the Executive Board of the adidas Group, will take on the responsibility for Global Brands.

No other subsequent events Since the end of the first half of 2009, there have been no significant macroeconomic, sociopolitical or legal changes which we expect to influence our business materially going forward.

Interim Group Management Report Subsequent Events and Outlook adidas Group First Half Year Report 2009 26

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 26 - ad09Q2_En.indd Global economic decline forecasted for 2009 Global sporting goods industry faces tough challenges adidas Group sales to decrease in 2009 In 2009, the global economy is projected to decline due to with cautious consumer spending We expect adidas Group sales to decline at a low- to mid- the real-economy side effects of the crisis in the financial The outlook for the global sporting goods industry has not single-digit rate on a currency-neutral basis in 2009. Sales sector. During the second quarter, GDP expectations have changed significantly during the second quarter compared to development will be negatively impacted by weaker consumer also nudged lower, particularly in Europe and Latin America. the first three months of the year. Due to the non-recurrence demand due to low levels of consumer confidence andrising Although many governments around the world have adopted of positive effects related to the UEFA EURO 2008™ in the unemployment in many major markets. Group currency- extensive measures to combat recessionary forces, the global first half of the year, and ongoing difficult market conditions neutral sales in the emerging markets of Europe, Asia and recession is nevertheless expected to continue into the second in major Western European markets, we expect the European Latin America are forecasted to develop better relative to half of the year. In Europe, GDP in the Euro Zone is expected sporting goods industry to decline in 2009. Nevertheless, mature markets such as Western Europe and North America. to decline around 4% in 2009 against a background of ongoing the 2010 FIFA World Cup™ is expected to trigger positive low export activity and rising unemployment. Industrial output momentum in the sector towards the end of this year. In the Heterogeneous sales expectations by segment in some countries such as Germany is predicted to decline USA, owing to rising unemployment and tight credit markets, We project a low- to mid-single-digit sales decline on a even further in the second half of 2009. European emerging demand for sporting goods is expected to be weaker in 2009 currency-neutral basis for the adidas brand in 2009. Higher markets are also forecasted to decline in 2009, with modest as consumers either delay their purchases or become more sales in the adidas Sport Style division will not offset revenue recovery projected for the second half of the year. In North selective and price sensitive. After a weaker than expected declines in the adidas Sport Performance division. Reebok America, GDP is projected to decline approximately 2.5% first half of the year, the Asian sporting goods market is now segment sales are now expected to decline at a low- to mid- versus the prior year. Some trading indicators suggest that predicted to decline in 2009. In China, industry growth is likely single-digit rate compared to the prior year on a currency- the US economic decline could bottom out in the course of the to moderate significantly, due to the exceptionally high rate neutral basis in 2009. This is as a result of lower growth in second half of the year, reflecting comprehensive fiscal and of retail expansion in 2008, and high sell-in rates by sporting emerging markets than originally expected. Nevertheless, monetary policy efforts. In Asia, excluding Japan, growth is goods manufacturers due to the Beijing 2008 Olympic Games. the Women’s Fitness category, which is our top priority for likely to slow slightly versus the prior year to a level of around In Japan, we expect the sporting goods industry to decline, 2009, is expected to grow strongly. Currency-neutral sales at 5% in 2009, the weakest since 2001. China and India are fore- in line with private consumption expectations for that mar- TaylorMade-adidas Golf are forecasted to increase at a low- casted to be affected by lower industrial production growth ket. In Latin America, although the sporting goods industry single-digit rate, supported by the consolidation of Ashworth and a slowdown of exports. Japan’s economy is forecasted has remained more resilient than in other regions, concerns for the full twelve-month period. On a comparable basis, how- to decline around 6% in 2009 versus 2008. In Latin America, related to increasing trade barriers in certain key markets such ever, excluding Ashworth, sales are projected to decline. This recent data suggests that the region will also show GDP as Brazil and Argentina could dampen growth prospects in the will be a result of the challenging market situation in the global declines of between 2% and 3% in 2009. second half of the year. golf market.

Consolidation of new businesses supports TaylorMade-adidas Golf and Reebok sales Sales recorded in the TaylorMade-adidas Golf segment will be supported by the consolidation of Ashworth revenues for the full twelve-month period. Ashworth, a leader in cotton casual golf apparel, has been consolidated within the adidas Group since November 20, 2008. In addition, sales in the Reebok segment will be positively influenced by the consolidation of sales from the brand’s new companies in Latin America for the full twelve-month period.

Interim Group Management Report Subsequent Events and Outlook adidas Group First Half Year Report 2009 27

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 27 - ad09Q2_En.indd adidas Group earnings per share to decrease in 2009 adidas Group 2009 outlook Earnings per share to be significantly more positive In 2009, the adidas Group gross margin is forecasted to decline. in the second half of 2009 A promotional environment in mature markets, as well as The adidas Group expects earnings per share to be signifi- expected higher sourcing costs due to increased raw material cantly more positive in the second half of 2009 compared to Currency-neutral sales low- to mid-single-digit decline and wage costs, in particular in the first half of the year, will the development in the first half year. Profitability will improve Gross margin decline contribute to this development. Currency devaluation effects, compared to the first half year as a result of a more moderate Operating margin decline in particular from the depreciation of the Russian rouble, are increase of input costs and positive impetus ahead of the 2010 Earnings per share decline expected to also have a significant negative impact on gross FIFA World Cup™. However, earnings per share in the second margin development in 2009. half of the year will not reach the levels achieved in the second half of the prior year. The Group’s other operating expenses as a percentage of sales are expected to increase in 2009. Costs related to restructur- Excess cash to be used to reduce net debt ing activities as well as higher expenses for controlled space In 2009, we expect continued strong cash flows from operat- initiatives in the adidas and Reebok segments will drive this ing activities. Cash flows from operating activities will be used development, partially compensated by positive effects from to finance working capital needs, investment activities, as well efficiency improvements throughout our organisation. Market- as dividend payments. Tight working capital management and ing working budget expenses as a percentage of sales are fore- disciplined investment activities are expected to help optimise casted to be at or below the prior year level. Other operating the Group’s free cash flow in 2009. Investments in tangible income is expected to decline. This will mainly be driven by the and intangible assets are expected to amount to around non-recurrence of book gains from acquisitions and disposals € 300 million. We intend to largely use excess cash to reduce in the TaylorMade-adidas Golf segment in the prior year. As net borrowings, which we forecast to be below the prior year a result of the expected Group gross margin decline and the level. As a result, we expect to make progress towards achiev- projected increase in other operating expenses as a percentage ing our medium-term financial leverage target of below 50%. of sales, we expect the operating margin for the adidas Group to decline.

Although lower financial expenses are expected due to reduced interest expenses resulting from the planned reduction of net borrowings, negative exchange rate variances could have a significant negative impact on this development. As a result of these developments and an increase in the Group’s tax rate compared to the prior year, net income attributable to shareholders and earnings per share are projected to decline in 2009. However, basic and diluted earnings per share are expected to decrease at a lower rate than net income attributable to shareholders due to a lower weighted average number of shares outstanding compared to the prior year.

Interim Group Management Report Subsequent Events and Outlook adidas Group First Half Year Report 2009 28

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 28 - ad09Q2_En.indd Responsibility Statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Herzogenaurach, August 5, 2009

Herbert Hainer Glenn Bennett CEO and Chairman Global Operations

Robin J. Stalker Erich Stamminger Finance President and CEO of the adidas Brand

Interim Consolidated Financial Statements (IFRS) Responsibility Statement adidas Group First Half Year Report 2009 29

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 29 - ad09Q2_En.indd Consolidated balance sheet € in millions

June 30, 2009 June 30, 2008 Change in % Dec. 31, 2008

Cash and cash equivalents 176 298 (40.8) 244 Short-term financial assets 128 35 268.2 141 Accounts receivable 1,729 1,641 5.4 1,624 Other current financial assets 157 117 33.3 287 Inventories 2,041 1,806 13.0 1,995 Income tax receivables 81 65 25.1 110 Other current assets 467 520 (10.2) 502 Assets classified as held for sale 27 54 (49.6) 31 Total current assets 4,806 4,536 6.0 4,934 Property, plant and equipment 868 725 19.7 886 Goodwill 1,492 1,393 7.1 1,499 Trademarks 1,367 1,205 13.5 1,390 Other intangible assets 186 170 9.2 204 Long-term financial assets 98 103 (5.3) 96 Other non-current financial assets 42 50 (15.0) 60 Deferred tax assets 422 377 11.9 344 Other non-current assets 126 120 5.0 120 Total non-current assets 4,601 4,143 11.1 4,599 Total assets 9,407 8,679 8.4 9,533

Short-term borrowings 603 370 62.8 797 Accounts payable 1,060 928 14.2 1,218 Other current financial liabilities 111 138 (19.4) 79 Income taxes 244 319 (23.6) 321 Provisions 321 328 (2.3) 324 Accrued liabilities 580 707 (18.0) 684 Other current liabilities 202 216 (6.3) 216 Liabilities classified as held for sale – 2 (100.0) 6 Total current liabilities 3,121 3,008 3.7 3,645 Long-term borrowings 2,433 2,223 9.5 1,776 Other non-current financial liabilities 13 39 (66.6) 23 Pensions and similar obligations 133 129 2.7 132 Deferred tax liabilities 430 427 0.8 463 Non-current provisions 30 32 (4.3) 28 Non-current accrued liabilities 20 39 (47.8) 37 Other non-current liabilities 34 24 34.7 29 Total non-current liabilities 3,093 2,913 6.2 2,488 Share capital 194 197 (1.8) 194 Reserves (122) (296) (59.0) (10) Retained earnings 3,117 2,845 9.6 3,202 Shareholders’ equity 3,189 2,746 16.2 3,386 Minority interests 4 12 (65.7) 14 Total equity 3,193 2,758 15.8 3,400 Total liabilities and equity 9,407 8,679 8.4 9,533 Rounding differences may arise in percentages and totals. From 2009, other (non-)current financial assets/liabilities are shown separately from other (non-)current assets/liabilities.

Interim Consolidated Financial Statements (IFRS) Consolidated Balance Sheet adidas Group First Half Year Report 2009 30

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 30 - ad09Q2_En.indd Consolidated income statement € in millions

1st half year 2009 1st half year 2008 Change 2nd quarter 2009 2nd quarter 2008 Change

Net sales 5,034 5,142 (2.1%) 2,457 2,521 (2.5%) Cost of sales 2,765 2,590 6.8% 1,352 1,258 7.5% Gross profit 2,269 2,552 (11.1%) 1,105 1,263 (12.5%) (% of net sales) 45.1% 49.6% (4.6pp) 45.0% 50.1% (5.1pp) Royalty and commission income 44 41 7.1% 24 20 19.1% Other operating income 48 39 23.9% 22 17 25.7% Other operating expenses 2,232 2,142 4.2% 1,079 1,092 (1.3%) (% of net sales) 44.3% 41.7% 2.7pp 43.9% 43.3% 0.6pp Operating profit 129 490 (73.6%) 72 208 (65.5%) (% of net sales) 2.6% 9.5% (7.0pp) 2.9% 8.2% (5.3pp) Financial income 7 16 (55.3%) 3 10 (74.4%) Financial expenses 99 87 14.7% 47 49 (7.1%) Income before taxes 37 419 (91.2%) 28 169 (83.2%) (% of net sales) 0.7% 8.1% (7.4pp) 1.2% 6.7% (5.5pp) Income taxes 25 132 (81.4%) 20 52 (61.1%) (% of income before taxes) 66.8% 31.5% 35.3pp 71.3% 30.8% 40.6pp Net income 12 287 (95.7%) 8 117 (93.1%) (% of net sales) 0.2% 5.6% (5.3pp) 0.3% 4.6% (4.3pp) Net income attributable to shareholders 13 286 (95.3%) 9 116 (92.6%) (% of net sales) 0.3% 5.6% (5.3pp) 0.3% 4.6% (4.3pp) Net income attributable to minority interests (1) 1 (178.6%) (1) 1 (216.6%)

Basic earnings per share (in €) 0.07 1.42 (95.1%) 0.04 0.59 (92.5%) Diluted earnings per share (in €) 0.10 1.35 (92.9%) 0.06 0.56 (89.7%) Rounding differences may arise in percentages and totals.

Interim Consolidated Financial Statements (IFRS) Consolidated Income Statement adidas Group First Half Year Report 2009 31

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 31 - ad09Q2_En.indd Consolidated statement of comprehensive income € in millions

1st half year 2009 1st half year 2008

Net income after taxes 12 287

Net loss on cash flow hedges, net of tax (110) (23) Actuarial gain on defined benefit plans, net of tax 1 1 Currency translation (4) (169) Other comprehensive income (114) (191)

Total comprehensive income (101) 96

Attributable to shareholders of adidas AG (100) 95 Attributable to minority interests (1) 1 Rounding differences may arise in percentages and totals.

Interim Consolidated Financial Statements (IFRS) Consolidated Statement of Comprehensive Income adidas Group First Half Year Report 2009 32

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 32 - ad09Q2_En.indd Consolidated statement of changes in equity € in millions

Cumulative Total Capital translation Hedging Other Retained shareholders’ Minority Share capital reserve adjustments reserve reserves 1) earnings equity interests Total equity

Balance at December 31, 2007 204 737 (510) (58) (8) 2,659 3,023 11 3,034

Total comprehensive income (169) (23) 1 286 95 1 96

Dividend payment (99) (99) (0) (99) Exercised share options 0 0 0 Repurchase of adidas AG shares (7) (267) (274) (274) Reclassifications of minorities in accordance with IAS 32 0 0 0

Balance at June 30, 2008 197 470 (679) (81) (7) 2,846 2,746 12 2,758

Balance at December 31, 2008 194 338 (432) 91 (6) 3,202 3,386 14 3,400

Total comprehensive income (4) (110) 1 13 (100) (1) (101)

Dividend payment (97) (97) (97) Acquisition of shares from minority shareholders 0 (11) (11) Newly created minority interests 0 3 3 Reclassifications of minorities in accordance with IAS 32 (0) (0) (0)

Balance at June 30, 2009 194 338 (436) (19) (5) 3,117 3,189 4 3,193 Rounding differences may arise in percentages and totals. 1) Reserves for actuarial gains /losses and share option plans.

Interim Consolidated Financial Statements (IFRS) Consolidated Statement of Changes in Equity adidas Group First Half Year Report 2009 33

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 33 - ad09Q2_En.indd Consolidated statement of cash flows € in millions

1st half year 2009 1st half year 2008

Operating activities: Income before taxes 37 419 Adjustments for: Depreciation and amortisation 136 107 Unrealised foreign exchange losses, net 13 14 Interest income (7) (16) Interest expense 69 79 Gains on sale of property, plant and equipment, net (1) (5) Operating profit before working capital changes 247 598 Increase in receivables and other current assets (38) (348) Increase in inventories (13) (229) (Decrease)/Increase in accounts payable and other current liabilities (343) 236 Cash (used in)/provided by operating activities before interest and taxes (147) 257 Interest paid (65) (77) Income taxes paid (154) (163) Net cash (used in)/provided by operating activities (366) 17

Investing activities: Purchase of trademarks and other intangible assets (20) (20) Proceeds from sale of other intangible assets 1 7 Purchase of property, plant and equipment (93) (108) Proceeds from sale of property, plant and equipment 34 5 Acquisition of further investments in subsidiaries (13) (6) Acquisition of subsidiaries and other business units net of cash acquired (4) (5) Proceeds from sale of short-term financial assets 12 52 Proceeds from sale/(Purchase) of investments and other long-term assets 13 (26) Interest received 7 16 Net cash used in investing activities (63) (85)

Financing activities: Increase in long-term borrowings 845 604 Dividend to shareholders of adidas AG (97) (99) Dividend to minority shareholders – (0) Exercised share options – 0 Repurchase of adidas AG shares – (274) Cash repayments of short-term borrowings (384) (159) Net cash provided by financing activities 364 72

Effect of exchange rates on cash (3) (1)

(Decrease)/increase in cash and cash equivalents (68) 3 Cash and cash equivalents at beginning of year 244 295 Cash and cash equivalents at end of period 176 298 Rounding differences may arise in percentages and totals.

Interim Consolidated Financial Statements (IFRS) Consolidated Statement of Cash Flows adidas Group First Half Year Report 2009 34

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 34 - ad09Q2_En.indd Notes to Interim Consolidated Financial Statements (IFRS) 2 Seasonality As at June 30, 2009 The sales of the Group in certain product categories are seasonal and therefore revenues and attributable earnings may vary within the fiscal year. As adidas and Reebok brand sales account for over 90% of the Group’s net sales, sales and earnings tend to be strongest in the first and third quarters of the fiscal year. However, shifts in the share of sales and attributable earnings 1 Basis of preparation of particular product categories, brands or the regional composition may occur throughout the The interim consolidated financial statements of adidas AG and its subsidiaries (collectively year. the “Group”) for the first half year ending June 30, 2009 are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The Group 3 Acquisitions of subsidiaries applied all International Financial Reporting Standards and Interpretations of the International Effective January 1, 2009, adidas International B.V. acquired 51% of the shares of Life Sport Ltd. Financial Reporting Interpretations Committee effective as at June 30, 2009, with the exception for a purchase price in the amount of ILS 25.6 million. Based in Holon (Israel), Life Sport Ltd. is of IFRS 7, which is not obligatory for interim financial reporting. a marketing company for adidas products in Israel. The purchase price allocation has yet to be finalised. The accounting policies used in the preparation of the interim financial statements are consis tent with those in the annual consolidated financial statements for the year endingDecember 31, Effective January 1, 2009, adidas International B.V. acquired the outstanding 25% of the shares 2008 and are in line with IAS 34 “International Accounting Standard No. 34 – Interim Financial of Reebok’s subsidiary in Spain, Reebok Spain S.A., Alicante. Reporting”. The interim financial statements also comply with GAS 16 “GermanAccounting Standard No. 16 – Interim Financial Reporting”. The interim financial statements and the Effective January 23, 2009, adidas AG acquired the remaining 5% of the shares of its subsidiary interim management report have not been audited in accordance with section 317 German in Greece, adidas Hellas A.E., Thessaloniki. Commercial Code (Handelsgesetzbuch – HGB) or reviewed by an auditor. On February 16, 2009, adidas International, Inc. acquired assets of Bones in Motion, Inc. as part The Group believes that the application of new/revised standards and interpretations which are of an asset deal for a purchase price in the amount of USD 5 million. Based in Austin/Texas effective from January 1, 2009 does not have a material impact on the Group’s financial position, (USA), Bones in Motion, Inc. is engaged in developing, manufacturing and selling sports- and results of operations or cash flows. The Group is currently analysing the potential impacts of fitness-specific location-aware software applications and web-based services. The purchase new/revised standards and interpretations that will be effective for financial years after Decem- price allocation has yet to be finalised. ber 31, 2009. 4 Assets/liabilities classified as held-for-sale Costs that are incurred unevenly during the financial year are anticipated or deferred in the With the exception of an Ashworth warehouse in the USA which is additionally classified as held- interim financial statements only if it would be also appropriate to anticipate or defer such costs for-sale as a result of the intention to sell and the existence of a purchase offer, the composition at the end of the financial year. of assets/liabilities classified as held-for-sale is unchanged versus March 31, 2009.

These interim consolidated financial statements should be read in conjunction with the 2008 5 Shareholders’ equity annual consolidated financial statements. The notes contained therein also apply to the quarterly In the period from January 1, 2009 to June 30, 2009, the nominal capital of adidas AG did financial statements for 2009 and are not repeated unless explicit reference is made to certain not change. Consequently, on June 30, 2009, the nominal capital of adidas AG amounted to changes. The results of operations for the first half year ending June 30, 2009 are not necessarily € 193,515,512, divided into 193,515,512 no-par-value bearer shares (“shares”). indicative of results to be expected for the entire year.

Interim Consolidated Financial Statements (IFRS) Notes to Interim Consolidated Financial Statements adidas Group First Half Year Report 2009 35

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 35 - ad09Q2_En.indd 6 Other operating income and other operating expenses 8 Segmental reporting Other operating income mainly includes income from the release of accruals and provisions and The Group is currently managed by brand segments, namely adidas, Reebok and other revenues. TaylorMade-adidas Golf.

Other operating expenses include expenses for marketing, sales and research and development, The Reebok segment includes the brands Reebok, Reebok-CCM Hockey and Rockport. as well as for logistics and central finance and administration. In addition, they include depreciation on tangible and amortisation on intangible assets, with the exception of other depreciation The TaylorMade-adidas Golf segment includes the brands TaylorMade, adidas Golf and and amortisation which is included in the cost of sales. In the first half of 2009, depreciation and Ashworth. amortisation amounted to € 132 million (2008: € 101 million). The Global Sourcing function together with other central functions such as Group Treasury 7 Earnings per share and Global IT is included in HQ/Consolidation. Basic earnings per share are calculated by dividing net income by the weighted average number of outstanding shares during the period after deduction of treasury shares. Financial information in accordance with the management approach is presented on pages 37 – 38 of this report. As a result of the Management Share Option Plan of adidas AG (MSOP), which was introduced in 1999, and the convertible bond issued in October 2003, which met the required conversion 9 Subsequent events criteria at the balance sheet date, dilutive potential shares have arisen. On July 6, 2009, adidas International Finance B.V, a fully owned subsidiary of adidas AG, issued a Eurobond in a total amount of € 500 million. Proceeds from the bond issue have been used to partially refinance short-term bank loans and for general corporate purposes. The bond has Earnings per share a maturity of five years, an annual coupon of 4.75% and was priced with a spread of 200 basis points above the respective Euro midswap. The issue was fixed at 99.865%. Since July 14, 2009, the notes are listed on the Luxembourg Stock Exchange in denominations of € 1,000 each.

1st half year 1st half year 2009 2008 Between the end of the first half of 2009 and the publication of this report on August 5, 2009, there were no other major Group-specific matters which we expect to influence our business Net income attributable to shareholders (€ in millions) 13 286 materially going forward. Weighted average number of shares 193,515,512 200,415,758 1) Basic earnings per share (in €) 0.07 1.42 Herzogenaurach, August 5, 2009 Net income attributable to shareholders (€ in millions) 13 286 The Executive Board of adidas AG Interest expense on convertible bond, net of taxes (€ in millions) 7 6 Net income used to determine diluted earnings per share (€ in millions) 20 292 Weighted average number of shares 193,515,512 200,415,758 1) Weighted share options 60,147 111,361 Weighted assumed conversion convertible bond 15,684,315 15,684,315 Weighted average number of shares for diluted earnings per share 209,259,974 216,211,434 1) Diluted earnings per share (in €) 0.10 1.35 1) After deduction of treasury shares.

Interim Consolidated Financial Statements (IFRS) Notes to Interim Consolidated Financial Statements adidas Group First Half Year Report 2009 36

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 36 - ad09Q2_En.indd Segmental information by brand € in millions

1st half year 2009 1st half year 2008 Change 2nd quarter 2009 2nd quarter 2008 Change adidas Net sales 3,667 3,787 (3.1%) 1,750 1,818 (3.8%) Gross profit 1,713 1,843 (7.1%) 812 879 (7.6%) Gross margin 46.7% 48.7% (2.0pp) 46.4% 48.3% (1.9pp) Operating profit 416 512 (18.7%) 188 175 7.2% Operating margin 11.3% 13.5% (2.2pp) 10.7% 9.6% 1.1pp

Reebok Net sales 907 923 (1.7%) 449 469 (4.3%) Gross profit 283 361 (21.8%) 148 193 (23.3%) Gross margin 31.2% 39.2% (8.0pp) 33.0% 41.2% (8.2pp) Operating profit (147) (24) (515.4%) (51) (11) (351.7%) Operating margin (16.2%) (2.6%) (13.6pp) (11.3%) (2.4%) (8.9pp)

TaylorMade-adidas Golf Net sales 449 417 7.6% 255 226 12.6% Gross profit 177 194 (8.8%) 100 105 (5.2%) Gross margin 39.4% 46.5% (7.1pp) 39.0% 46.4% (7.3pp) Operating profit (18) 43 (143.2%) 2 19 (89.0%) Operating margin (4.1%) 10.3% (14.4pp) 0.8% 8.6% (7.7pp)

HQ/Consolidation Net sales 11 16 (26.6%) 3 7 (53.9%) Gross profit 97 154 (36.9%) 45 86 (47.4%) Operating profit (121) (41) (195.6%) (68) 24 (378.8%)

Total Net sales 5,034 5,142 (2.1%) 2,457 2,521 (2.5%) Gross profit 2,269 2,552 (11.1%) 1,105 1,263 (12.5%) Gross margin 45.1% 49.6% (4.6pp) 45.0% 50.1% (5.1pp) Operating profit 129 490 (73.6%) 72 208 (65.5%) Operating margin 2.6% 9.5% (7.0pp) 2.9% 8.2% (5.3pp) Rounding differences may arise in percentages and totals.

Interim Consolidated Financial Statements (IFRS) Segmental Information adidas Group First Half Year Report 2009 37

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 37 - ad09Q2_En.indd Segmental information by region € in millions

1st half year 2009 1st half year 2008 Change in % 2nd quarter 2009 2nd quarter 2008 Change in %

Europe Net sales 2,143 2,352 (8.9) 967 1,103 (12.3)

North America Net sales 1,173 1,160 1.1 636 581 9.3

Asia Net sales 1,245 1,214 2.5 617 620 (0.6)

Latin America Net sales 443 381 16.3 226 204 10.8

HQ/Consolidation Net sales 30 36 (13.0) 11 13 (7.7)

Total Net sales 5,034 5,142 (2.1) 2,457 2,521 (2.5) Rounding differences may arise in percentages and totals.

Interim Consolidated Financial Statements (IFRS) Segmental Information adidas Group First Half Year Report 2009 38

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 38 - ad09Q2_En.indd Management Boards

Executive Board Supervisory Board

Herbert Hainer Igor Landau In spring 2009, the employees of adidas AG and the Annual CEO and Chairman Chairman General Meeting elected a new Supervisory Board.

Glenn Bennett Sabine Bauer 1) Biographical information on our Executive Board members Global Operations Deputy Chairwoman as well as on mandates of the members of the Executive Board and the members of the Supervisory Board is avail- Robin J. Stalker Willi Schwerdtle able at www.adidas-Group.com/executive-board and Finance Deputy Chairman www.adidas-Group.com/supervisory-board.

Erich Stamminger Dieter Hauenstein 1) President and CEO of the adidas Brand Dr. Wolfgang Jäger 1)

Dr. Stefan Jentzsch

Herbert Kauffmann

Roland Nosko 1)

Alexander Popov

Hans Ruprecht 1)

Heidi Thaler-Veh 1)

Christian Tourres

1) Employee representative.

adidas Group First Half Year Report 2009 39

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 39 - ad09Q2_En.indd Financial Calendar 2009/2010

August 5, 2009 First Half 2009 Results Press release, conference call and webcast

November 4, 2009 Nine Months 2009 Results Press release, conference call and webcast

March 3, 2010 2009 Full Year Results Analyst and press conferences in Herzogenaurach, Germany Press release, conference call and webcast

May 4, 2010 First Quarter 2010 Results Press release, conference call and webcast

May 6, 2010 Annual General Meeting in Fürth (Bavaria), Germany Webcast

May 7, 2010 Dividend paid (Subject to Annual General Meeting approval)

August 4, 2010 First Half 2010 Results Press release, conference call and webcast

November 4, 2010 Nine Months 2010 Results Press release, conference call and webcast

adidas Group First Half Year Report 2009 40

version: Wed, 09-08-05, 09:35 AM 1st corr 2nd corr 3rd corr 4th corr 5th corr page 40 - ad09Q2_En.indd Contact adidas AG Adi-Dassler-Str. 1 91074 Herzogenaurach Germany

Tel: + 49 (0) 91 32 84 – 0 Fax: + 49 (0) 91 32 84 – 22 41 www.adidas-Group.com

Investor Relations Tel: + 49 (0) 91 32 84 – 29 20 / 21 87 Fax: + 49 (0) 91 32 84 – 31 27 email: [email protected] www.adidas-Group.com / investors adidas Group is a member of DAI (German Share Institute), DIRK (German Investor Relations Association) and NIRI (National Investor Relations Institute, USA).

This report is also available in German. For further adidas Group publications, please see our corporate website.

Concept and Design häfelinger + wagner design, Munich

adidas Group First Half Year Report 2009 41

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