adidas-Salomon Financial Calendar 2005 ANNUAL REPORT 2004 March 9 2004 Full Year Results Analyst and press conferences Press release, conference call and webcast ANNUAL REPORT 2004 2004 TARGETS 2004 RESULTS 2005 TARGETS May 2 First Quarter 2005 Results Drive currency-neutral sales growth of 3 to 5% > Currency-neutral sales grow 7% > Deliver mid- to high-single-digit Press release, conference call and webcast currency-neutral sales growth May 4 Bring major new technology evolutions and > Major new technology evolutions and > Bring major new concepts, technology revolutions to market: revolutions come to market: evolutions and revolutions to market: Annual General Meeting in Fürth (Bavaria), Germany a3®, ClimaCool®, Predator®, a3®, ClimaCool®, Predator®, adidas_1, Stella, a3®, Ground Control System™, Roteiro™ football, F50 football boot, Roteiro™ football, F50 football boot, ClimaCool®, Clima Compression, Predator®, Webcast Ground Control System™, Ground Control System™, ForMotion™, David Beckham range, May 5 T-MAC HUG System™ T-MAC HUG System™ Official World Cup Match Ball 1) Dividend paid Deliver currency-neutral top-line growth at all > Currency-neutral revenues increase at all > Grow currency-neutral sales at all brands and August 3 brands and in all regions brands and in all regions in all regions First Half 2005 Results Expand gross margin for the fifth consecutive > Group gross margin reaches record level > Exceed medium-term gross margin range Press release, conference call and webcast Impossible Is Nothing year of 47.2% of 45 to 46% November 3 Visibly increase operating margin > Operating margin improves by 1.1 percentage > Achieve highest operating margin ever points to 9.0% Nine Months 2005 Results Continue to optimize working capital > Working capital as a percentage of net sales > Continue to optimize working capital Press release, conference call and webcast management reduced by 2.1pp to 20.8% management 1)Subject to Annual General Meeting approval Continue debt reduction > Debt reduced by € 352 million; lowest > Initiate share buyback program and financial leverage since Salomon acquisition increase dividends Drive earnings growth of at least 10% > Group earnings grow 21% > Drive comparable earnings growth of 10 to 15% versus the 2004 level of € 314 million Further increase shareholder value > adidas-Salomon share price grows 32%, > Executive Board to propose 30% dividend Further increase shareholder value increase at the upcoming AGM adidas-Salomon AG World of Sports /// Adi-Dassler-Straße 1 91074 Herzogenaurach /// Germany Tel: +49(0)9132 84-0 /// Fax: +49(0)9132 84-2241 www.adidas-Salomon.com Net Sales € in millions Financial Highlights (IFRS) adidas-Salomon Segmental Information € in millions Net Sales by Segment 2004 Group Net Sales € 6.478 billion 2004 2003 Change 2004 2003 Change 2000 5,835 Operating Highlights € in millions adidas 2001 6,112 Net sales 6,478 6,267 3.4% Net sales 5,174 4,950 4.5% 80% /// adidas is a leading brand in the sporting goods market with strong Income before taxes 520 438 18.7% Gross profit 2,284 2,008 13.7% positions in footwear, apparel and hardware. adidas products offer technological 2002 6,523 Net income 314 260 20.8% Operating profit 523 365 43.5% innovations and cutting-edge designs to athletes of all skill levels who aspire to achieve peak performance. The adidas brand is structured in three divisions: Sport Key Ratios % Number of employees at year-end 10,793 9,547 13.1% Performance, Sport Heritage and Sport Style. 2003 6,267 Gross margin 47.2 44.9 2.3pp Salomon Selling, general and administrative Net sales 653 658 (0.8%) 2004 6,478 expenses as a percentage of net sales 36.7 35.6 1.1pp Gross profit 259 264 (1.8%) 10% /// Salomon is the Freedom Action Sports brand. Number one in the world Operating margin 9.0 7.8 1.1pp Operating profit 9 35 (73.6%) for winter sports, with leading positions in alpine, nordic and snowboard products, Effective tax rate 37.8 38.0 (0.2pp) Number of employees at year-end 2,769 2,829 (2.1%) Salomon is actively expanding its presence in summer and alternative sports as well Net income as a percentage of net sales 4.9 4.2 0.7pp TaylorMade-adidas Golf as soft goods. All products are highly innovative and performance-oriented. The Net Income € in millions Equity ratio 36.8 32.4 4.4pp Net sales 633 637 (0.6%) Salomon family of brands comprises Salomon, Mavic-adidas Cycling, Arc’Teryx, Financial leverage 36.5 69.8 (33.3pp) Gross profit 298 290 2.8% Bonfire and Cliché. Balance Sheet Data 60 2000 182 € in millions Operating profit 67 (10.8%) Total assets 4,427 4,188 5.7% Number of employees at year-end 1,195 1,166 2.5% 10% /// TaylorMade-adidas Golf offers a full range of golf hardware, Inventories 1,155 1,164 (0.7%) 2001 208 footwear, apparel and accessories. It is a leader in the industry and the number one Receivables and other current assets 1,425 1,335 6.7% metalwood golf brand. TaylorMade-adidas Golf markets products under the brand 2002 229 Working capital 1,348 1,433 (6.0%) names TaylorMade, adidas Golf and Maxfli. Net total borrowings 594 946 (37.3%) 2003 260 Shareholders’ equity 1,628 1,356 20.1% Per Share of Common Stock € adidas-Salomon AG 2004 314 Basic earnings per share 6.88 5.72 20.3% Adi-Dassler-Str. 1 /// 91074 Herzogenaurach /// Germany Diluted earnings per share 6.54 5.72 14.3% Tel: +49(0)9132 84-0 /// Fax: +49(0)9132 84-2241 Basic earnings per share www.adidas-Salomon.com (before goodwill amortization) 7.90 6.71 17.8% Investor Relations Operating cash flow per share 12.56 14.32 (12.3%) Tel: +49(0)9132 84-2920 / 3584 /// Fax: +49(0)9132 84-3127 Dividend per share 1.301) 1.00 30.0% e-mail: [email protected] Share price at year-end 118.75 90.30 31.5% www.adidas-Salomon.com/en/investor/ Other at year-end Number of employees 17,023 15,686 8.5% adidas-Salomon is a member of DAI (German Share Institute), DIRK (German Investor Relations Association) Number of shares outstanding 45,859,000 45,453,750 0.9% and NIRI (National Investor Relations Institute, USA). Average number of shares 45,649,560 45,452,361 0.4% Average number of shares This report is also available in German. (including dilutive effect) 49,669,346 45,469,366 9.2% For further adidas-Salomon publications, please see our corporate website. Rounding differences may arise in percentages and totals. 1)Subject to Annual General Meeting approval Concept and Design häfelinger+wagner design, Munich © 2005 adidas-Salomon AG Net Sales € in millions Financial Highlights (IFRS) adidas-Salomon Segmental Information € in millions Net Sales by Segment 2004 Group Net Sales € 6.478 billion 2004 2003 Change 2004 2003 Change 2000 5,835 Operating Highlights € in millions adidas 2001 6,112 Net sales 6,478 6,267 3.4% Net sales 5,174 4,950 4.5% 80% /// adidas is a leading brand in the sporting goods market with strong Income before taxes 520 438 18.7% Gross profit 2,284 2,008 13.7% positions in footwear, apparel and hardware. adidas products offer technological 2002 6,523 Net income 314 260 20.8% Operating profit 523 365 43.5% innovations and cutting-edge designs to athletes of all skill levels who aspire to achieve peak performance. The adidas brand is structured in three divisions: Sport Key Ratios % Number of employees at year-end 10,793 9,547 13.1% Performance, Sport Heritage and Sport Style. 2003 6,267 Gross margin 47.2 44.9 2.3pp Salomon Selling, general and administrative Net sales 653 658 (0.8%) 2004 6,478 expenses as a percentage of net sales 36.7 35.6 1.1pp Gross profit 259 264 (1.8%) 10% /// Salomon is the Freedom Action Sports brand. Number one in the world Operating margin 9.0 7.8 1.1pp Operating profit 9 35 (73.6%) for winter sports, with leading positions in alpine, nordic and snowboard products, Effective tax rate 37.8 38.0 (0.2pp) Number of employees at year-end 2,769 2,829 (2.1%) Salomon is actively expanding its presence in summer and alternative sports as well Net income as a percentage of net sales 4.9 4.2 0.7pp TaylorMade-adidas Golf as soft goods. All products are highly innovative and performance-oriented. The Net Income € in millions Equity ratio 36.8 32.4 4.4pp Net sales 633 637 (0.6%) Salomon family of brands comprises Salomon, Mavic-adidas Cycling, Arc’Teryx, Financial leverage 36.5 69.8 (33.3pp) Gross profit 298 290 2.8% Bonfire and Cliché. Balance Sheet Data 60 2000 182 € in millions Operating profit 67 (10.8%) Total assets 4,427 4,188 5.7% Number of employees at year-end 1,195 1,166 2.5% 10% /// TaylorMade-adidas Golf offers a full range of golf hardware, Inventories 1,155 1,164 (0.7%) 2001 208 footwear, apparel and accessories. It is a leader in the industry and the number one Receivables and other current assets 1,425 1,335 6.7% metalwood golf brand. TaylorMade-adidas Golf markets products under the brand 2002 229 Working capital 1,348 1,433 (6.0%) names TaylorMade, adidas Golf and Maxfli. Net total borrowings 594 946 (37.3%) 2003 260 Shareholders’ equity 1,628 1,356 20.1% Per Share of Common Stock € adidas-Salomon AG 2004 314 Basic earnings per share 6.88 5.72 20.3% Adi-Dassler-Str.