Adidas : Q1 Financial Supplement EN Final

F I N A N C I A L S U P P L E M E N T J A N U A R Y - M A R C H

FINANCIAL SUPPLEMENT

TABLE OF CONTENTS

Consolidated Statement of Financial Position _____________________________________________ 3

Condensed Consolidated Income Statement ______________________________________________ 5

Consolidated Statement of Comprehensive Income ________________________________________ 6

Consolidated Statement of Changes in Equity _____________________________________________ 7

Consolidated Statement of Cash Flows __________________________________________________ 8

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2 0 2 3

1	2	3	4	5
CONSOLIDATED STATEMENT	CONSOLIDATED INCOME	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT
OF FINANCIAL POSITION	STATEMENT	OF COMPREHENSIVE INCOME	OF CHANGES IN EQUITY	OF CASH FLOWS

Consolidated Statement of Financial Position

adidas AG Consolidated Statement of Financial Position (IFRS) € in millions

		March 31,		March 31,
		2024	2023		Change in %
Assets
Cash and cash equivalents		1,086		778		39.6
Short-term financial assets		3		-		n.a.
Accounts receivable		2,606		2,818		(7.5)
Other current financial assets		848		770		10.1
Inventories		4,427		5,675		(22.0)
Income tax receivables		152		96		57.5
Other current assets		1,049		1,208		(13.1)
Total current assets		10,170		11,344		(10.3)
Property, plant, and equipment		2,111	2,201	(4.1)
Right-of-use assets		2,195		2,471		(11.1)
Goodwill		1,250		1,248		0.2
Other intangible assets		448		432		3.8
Long-term financial assets		319		306		4.3
Other non-current financial assets		510		338		50.9
Deferred tax assets		1,319		1,265		4.2
Other non-current assets		68		71		(4.6)
Total non-current assets		8,221		8,332		(1.3)
Total assets		18,392	19,677	(6.5)

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2 0 2 3

1	2	3	4	5
CONSOLIDATED STATEMENT	CONSOLIDATED INCOME	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT
OF FINANCIAL POSITION	STATEMENT	OF COMPREHENSIVE INCOME	OF CHANGES IN EQUITY	OF CASH FLOWS

adidas AG Consolidated Statement of Financial Position (IFRS) € in millions

		March 31,		March 31,
		2024		2023		Change in %
Liabilities and equity
Short-term borrowings		669		1,297		(48.4)
Accounts payable		2,289		2,102		8.9
Current lease liabilities		553		596		(7.2)
Other current financial liabilities		193		325		(40.7)
Income taxes		290		359		(19.3)
Other current provisions		1,308		1,408		(7.1)
Current accrued liabilities		2,097		2,403		(12.8)
Other current liabilities		669		465		43.9
Total current liabilities		8,066		8,954		(9.9)
Long-term borrowings		2,426	2,942	(17.5)
Non-current lease liabilities		2,004		2,181		(8.1)
Other non-current financial liabilities		8		21		(64.0)
Pensions and similar obligations		128		115		10.9
Deferred tax liabilities		149		136		10.0
Other non-current provisions		308		103		200.3
Non-current accrued liabilities		-		7		n.a.
Other non-current liabilities		86		7		1,058.7
Total non-current liabilities		5,108		5,512		(7.3)
Share capital		179	179	0.0
Reserves		386		362		6.5
Retained earnings		4,307		4,308		(0.0)
Shareholders' equity		4,871		4,849		0.5
Non-controlling interests		346	362	(4.3)
Total equity	5,218	5,211	0.1
Total liabilities and equity		18,392	19,677	(6.5)

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2 0 2 3

1	2	3	4	5
CONSOLIDATED STATEMENT	CONSOLIDATED INCOME	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT
OF FINANCIAL POSITION	STATEMENT	OF COMPREHENSIVE INCOME	OF CHANGES IN EQUITY	OF CASH FLOWS

Condensed Consolidated Income Statement

adidas AG Condensed Consolidated Income Statement (IFRS) € in millions

First quarter	First quarter
2024	2023	Change

Net sales

Cost of sales

Gross profit

(% of net sales)

Royalty and commission income

Other operating income

Other operating expenses

(% of net sales)

Marketing and point-of-sale expenses

(% of net sales)

Operating overhead expenses1

(% of net sales)

Operating profit

(% of net sales)

Financial income

Financial expenses

Income before taxes

(% of net sales)

Income taxes

(% of income before taxes)

Net income/(loss) from continuing operations

(% of net sales)

Loss from discontinued operations, net of tax

Net income/(loss)

(% of net sales)

Net income/(loss) attributable to shareholders

(% of net sales)

Net (loss)/income attributable to non-controlling interests

Basic earnings per share from continuing operations (in €)

Diluted earnings per share from continuing operations (in €)

Basic earnings per share from continuing and discontinued operations (in €)

Diluted earnings per share from continuing and discontinued operations (in €)

5,458
2,662
2,796
51.2%
17
2
2,478
45.4%
657
12.0%
1,822
33.4%
336
6.2%
24
115
245
4.5%
74
30.1%
171
3.1%
(1)
170
3.1%
170
3.1%
(0)
0.96
0.96
0.95
0.95

5,274 3.5%

2,911 (8.5%)

2,363 18.3%

44.8% 6.4pp

1. (33.8%)

1. (95.4%)

2,367 4.7%

44.9% 0.5pp

601 9.3%

11.4% 0.6pp

1,766 3.2%

33.5%		(0.1pp)
60	458.4%
1.1%		5.0pp
13	92.1%

1. 180.3%

1. 675.1%

0.6% 3.9pp

55 33.4%

174.9% (144.8pp)

1. n.a.

(0.4%) n.a.

1. 83.8%

1. n.a.

(0.6%) n.a.

1. n.a.

(0.7%) n.a.

9 n.a.

(0.18) n.a.

(0.18) n.a.

(0.22) n.a.

(0.22) n.a.

1 Aggregated distribution and selling expenses, general and administration expenses, sundry expenses and impairment losses (net) on accounts receivable and contract assets.

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1	2	3	4	5
CONSOLIDATED STATEMENT	CONSOLIDATED INCOME	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT
OF FINANCIAL POSITION	STATEMENT	OF COMPREHENSIVE INCOME	OF CHANGES IN EQUITY	OF CASH FLOWS

Consolidated Statement of Comprehensive Income

adidas AG Consolidated Statement of Comprehensive Income (IFRS) € in millions

		First quarter		First quarter
		2024	2023
Net income/(loss)		170	(30)
Items of other comprehensive income that will not be reclassified subsequently
to profit or loss

Remeasurements of defined benefit plans (IAS 19), net of tax1

Net loss on other equity investments (IFRS 9), net of tax

Subtotal of items of other comprehensive income that will not be reclassified subsequently to profit or loss

Items of other comprehensive income that will be reclassified to profit or loss when specific conditions are met

Net gain/(loss) on cash flow hedges and net foreign investment hedges, net of tax

Net (loss)/gain on cost of hedging reserve - options, net of tax

Net (loss)/gain on cost of hedging reserve - forward contracts, net of tax

Currency translation differences

Subtotal of items of other comprehensive income that will be reclassified to profit or loss when specific conditions are met

Other comprehensive income

Total comprehensive income

1. 2

1. (0)

1. 2

70(54)

1. 3

1. 14

70(80)

135 (116)

1. (114)

1. (144)

Attributable to shareholders of adidas AG		301	(146)
Attributable to non-controlling interests		7		2

1 Includes actuarial gains or losses relating to defined benefit obligations, return on plan assets (excluding interest income) and the asset ceiling effect.

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1	2	3	4	5
CONSOLIDATED STATEMENT	CONDENSED CONSOLIDATED	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT
OF FINANCIAL POSITION	INCOME STATEMENT	OF COMPREHENSIVE INCOME	OF CHANGES IN EQUITY	OF CASH FLOWS

Consolidated Statement of Changes in Equity

adidas AG Consolidated Statement of Changes in Equity (IFRS) € in millions

Balance at

December 31, 2022

Other comprehensive income

Net (loss)/income

Total comprehensive income

Repurchase of adidas AG shares due to equity-settledshare-based payment

Reissuance of treasury shares due to equity-settledshare-based payment

Equity-settledshare-based payment

Balance at

March 31, 2023

Balance at

December 31, 2023

Other comprehensive income

Net income/(loss)

Total comprehensive income

Repurchase of adidas AG shares due to equity-settledshare-based payment

Reissuance of treasury shares due to equity-settledshare-based payment

Equity-settledshare-based payment

Acquisition of shares from non-controlling interests shareholders in accordance with IAS 32

Balance at

March 31, 2024

										Cost of
				Cumulative				Cost of		hedging
				currency				hedging		reserve -
Share		Capital		translation		Hedging		reserve -		forward		Other
capital		reserve		differences		reserve		options		contracts		reserves
179	1,338	(608)	(90)	(9)	(48)	(116)
-		-	(72)	(54)	3	14	2
-		-		-		-		-		-		-
-		-	(72)	(54)	3	14	2
(0)		-		-		-		-		-		-
0		-		-		-		-		-		-
-	3		-		-		-		-		-
179	1,341	(681)	(144)	(6)	(34)	(114)
179	1,355	(750)	(217)	(2)	(2)	(126)
-		-	62	70	(0)	(5)	4
-		-		-		-		-		-		-
-		-	62	70	(0)	(5)	4
(0)		-		-		-		-		-		-
0		-		-		-		-		-		-
-	2		-		-		-		-		-
-		-	(0)		-		-		-	(5)
179	1,357	(688)	(146)	(2)	(7)	(128)

	Share-
Retained	holders'
earnings	equity
4,347	4,991
-	(107)
(39)	(39)
(39)	(146)
(7)	(7)
7	7
0	4
4,308	4,849
4,145	4,580
-	131
170	170
170	301
(7)	(7)
7	7
(7)	(5)
-	(5)
4,307	4,871

Non- controlling

interests Total equity

360	5,351
(7)	(114)
9	(30)
2	(144)
-	(7)
-	7
-	4
362	5,211
345	4,925
8	139
(0)	170
7	309
-	(7)
-	7
-	(5)
(6)	(12)
346	5,218

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1	2	3	4	5
CONSOLIDATED STATEMENT	CONDENSED CONSOLIDATED	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT
OF FINANCIAL POSITION	INCOME STATEMENT	OF COMPREHENSIVE INCOME	OF CHANGES IN EQUITY	OF CASH FLOWS

Consolidated Statement of Cash Flows

adidas AG Consolidated Statement of Cash Flows (IFRS) € in millions1

		First quarter		First quarter
		2024	2023
Operating activities:
Income before taxes		245		32
Adjustments for:
Depreciation, amortization, and impairment losses		273		281
Reversals of impairment losses		(2)		(5)
Interest income		(10)		(4)
Interest expense		48		41
Unrealized foreign exchange losses/(gains), net		96		(14)
Losses on sale of property, plant, and equipment and intangible assets, net		2		3
Other non-cash effects from operating activities		(7)		(0)
Operating profit before working capital changes		646		333
(Increase)/Decrease in receivables and other assets		(938)		69
Decrease in inventories		107		153
Increase/(Decrease) in accounts payable and other liabilities		177		(1,032)
Net cash used in operations before taxes		(8)		(477)
Income taxes paid		(108)		(61)
Net cash used in operating activities		(116)		(538)
Investing activities:
Purchase of other intangible assets		(31)		(31)
Proceeds from sale of other intangible assets		-		0
Purchase of property, plant, and equipment		(38)		(47)
Proceeds from sale of property, plant, and equipment		0		2
Proceeds from sale of short-term financial assets		30		-
(Purchase of)/Proceeds from investments and other long-term assets		(53)		60
Interest received		10		4
Net cash used in investing activities		(82)		(13)
Financing activities:
Interest paid		(39)		(32)
Repayments of lease liabilities		(155)		(170)
Repurchase of treasury shares due to share-based payments		(15)		(7)
Proceeds from reissuance of treasury shares due to share-based payments		6		6
Proceeds of short-term borrowings		116		764
Acquisition of non-controlling interests		(12)		-
Net cash (used in)/generated from financing activities		(98)		561
IAS 29 Hyperinflation effects in operating, investing and financing cashflows		(51)	(11)
Sum of cashflows		(347)		(2)
Effect of exchange rates on cash		(15)		(20)
Decrease in cash and cash equivalents		(361)		(22)
Cash and cash equivalents at beginning of year		1,447		800

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1	2	3	4	5
CONSOLIDATED STATEMENT	CONDENSED CONSOLIDATED	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT
OF FINANCIAL POSITION	INCOME STATEMENT	OF COMPREHENSIVE INCOME	OF CHANGES IN EQUITY	OF CASH FLOWS

adidas AG Consolidated Statement of Cash Flows (IFRS) € in millions1

		First quarter		First quarter
		2024	2023
Effect indexing cash and cash equivalents		16		2
Cash and cash equivalents at beginning of year acc. Balance sheet		1,431		798
Cash and cash equivalents at end of period		1,086		778

1 Prior year adjusted due to Hyperinflation accounting

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