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HALF YEAR REPORT
JANUARY – JUNE
HALF YEAR REPORT 2021
HALF YEAR
REPORT
TABLE OF CONTENTS
FINANCIAL HIGHLIGHTS (IFRS) ______________________________________________________________________________________________________________________ 1
BUSINESS PERFORMANCE __________________________________________________________________________________________________________________________ 2
ECONOMIC AND SECTOR DEVELOPMENT ____________________________________________________________________________________________________________________ 2
INCOME STATEMENT _______________________________________________________________________________________________________________________________________ 2
STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS ____________________________________________________________________________________ 4
BUSINESS PERFORMANCE BY SEGMENT _____________________________________________________________________________________________________________ 6
EMEA ______________________________________________________________________________________________________________________________________________________ 6
NORTH AMERICA ___________________________________________________________________________________________________________________________________________ 7
GREATER CHINA ___________________________________________________________________________________________________________________________________________ 7
ASIA-PACIFIC ______________________________________________________________________________________________________________________________________________ 8
LATIN AMERICA ____________________________________________________________________________________________________________________________________________ 8
OUTLOOK ___________________________________________________________________________________________________________________________________________ 9
GLOBAL ECONOMIC GROWTH TO RECOVER IN 2021 __________________________________________________________________________________________________________ 9
SPORTING GOODS INDUSTRY TO RECOVER NOTABLY IN 2021 _________________________________________________________________________________________________ 9
ADIDAS INCREASES OUTLOOK FOR FULL YEAR 2021 __________________________________________________________________________________________________________ 9
RISKS AND OPPORTUNITIES _______________________________________________________________________________________________________________________________ 10
CONSOLIDATED STATEMENT OF FINANCIAL POSITION_______________________________________________________________________________________________ 11
CONDENSED CONSOLIDATED INCOME STATEMENT _________________________________________________________________________________________________ 13
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME _________________________________________________________________________________________ 14
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ______________________________________________________________________________________________ 15
CONSOLIDATED STATEMENT OF CASH FLOWS ______________________________________________________________________________________________________ 16
EXPLANATORY NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (IFRS) AS AT JUNE 30, 2021 _________________________ 18
RESPONSIBILITY STATEMENT ______________________________________________________________________________________________________________________ 32
To enhance readability, registered trademarks as well as references to rounding differences are omitted in this publication.
HALF YEAR REPORT 2021
| | | 1 | | | | 2 | 3 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
FINANCIAL HIGHLIGHTS (IFRS)
| | | | | | | | First half year | First half year | | |
| --- | --- | --- | --- | --- | --- | --- | ---------------- | ---------------- | ------------------ | --- |
| | | | | | | | | 2021 | 2020 Change | |
| | | | | | | | | | | |
Operating Highlights (€ in millions)
| Net sales | | | | | | | 10,345 | | 7,733 | 34% |
| ------------------------- | --- | --- | --- | --- | --- | --- | -------- | ------- | ------- | ---- |
| Gross profit | | | | | | | | 5,362 | 3,898 | 38% |
| | | | | | | | | | | |
| Other operating expenses | | | | | | | | 4,154 | 4,156 | 0% |
| | | | | | | | | | | |
| EBITDA | | | | | | | | 1,804 | 425 | 324% |
| | | | | | | | | | | |
| Operating profit / (loss) | | | | | | | | 1,248 | (215) | n.a. |
| | | | | | | | | | | |
Net income / (loss) from continuing operations 890 (217) n.a.
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Net income / (loss) attributable to shareholders 955 (264) n.a.
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | ---- | ---- | --- |
| | | | | | | | | | | |
Key Ratios
| Gross margin | | | | | | | 51.8% | 50.4% | | 1.4pp |
| ------------ | --- | --- | --- | --- | --- | --- | ------- | ------- | --- | ----- |
Other operating expenses in % of net sales 40.2% 53.8% (13.6pp)
| | | | | | | | | | | |
| ------------------ | --- | --- | --- | --- | --- | --- | ------- | -------- | -------- | ----- |
| Operating margin | | | | | | | 12.1% | (2.8%) | 14.8pp | |
| | | | | | | | | | | |
| Effective tax rate | | | | | | | 24.5% | 22.4% | | 2.1pp |
| | | | | | | | | | | |
Net income attributable to shareholders in % of net sales 9.2% (3.4%) 12.6pp
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Average operating working capital in % of net sales1 21.4% 23.2% (1.8pp)
| | | | | | | | | | | |
| -------------------------------- | --- | --- | --- | --- | --- | --- | ------- | -------- | ---------- | ----- |
| Equity ratio2 | | | | | | | 32.5% | 30.7% | | 1.8pp |
| | | | | | | | | | | |
| Adjusted net borrowings3/EBITDA4 | | | | | | | | 0.9 | 2.3 | (1.4) |
| | | | | | | | | | | |
| Financial leverage | | | | | | | 44.3% | 80.1% | (35.8pp) | |
| | | | | | | | | | | |
| Return on equity2 | | | | | | | 13.4% | (4.2%) | 17.7pp | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Balance Sheet and C ash Flow Data (€ in millions)
| Total assets | | | | | | | 21,877 | 20,301 | | 8% |
| ------------------------------------ | --- | --- | --- | --- | --- | --- | -------- | -------- | ------- | ----- |
| Inventories | | | | | | | | 4,054 | 5,213 | (22%) |
| | | | | | | | | | | |
| Receivables and other current assets | | | | | | | | 4,257 | 3,694 | 15% |
| | | | | | | | | | | |
| Operating working capital | | | | | | | | 4,213 | 4,506 | (7%) |
| | | | | | | | | | | |
| Shareholders’ equity | | | | | | | | 7,106 | 6,230 | 14% |
| | | | | | | | | | | |
| Capital expenditure | | | | | | | | 183 | 217 | (16%) |
| | | | | | | | | | | |
Net cash generated from / (used in) operating activities 1,077 (819) n.a.
| | | | | | | | | | | |
| ------------------------------ | --- | --- | --- | --- | --- | --- | --- | ------ | -------- | ---- |
| | | | | | | | | | | |
| Per Share of Common Stock (€) | | | | | | | | | | |
| Basic earnings | | | | | | | | 4.52 | (0.97) | n.a. |
| Diluted earnings | | | | | | | | 4.52 | (0.97) | n.a. |
| | | | | | | | | | | |
Net cash generated from / (used in) operating activities 5.52 (4.19) n.a.
| | | | | | | | | | | |
| ---------------------------- | --- | --- | --- | --- | --- | --- | -------- | -------- | ---- | ---- |
| Dividend | | | | | | | | 3.00 | – | n.a. |
| | | | | | | | | | | |
| Share price at end of period | | | | | | | 313.90 | 233.60 | | 34% |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Other (at end of period) | | | | | | | | | | |
| Number of employees | | | | | | | 58,007 | 61,445 | | (6%) |
Number of shares outstanding 195,066,060 195,032,889 0%
| | | | | | | | | | | |
| ---------------------------------- | --- | --- | --- | --- | --- | --- | ------------- | ------------- | ---- | --- |
| Average number of shares | | | | | | | 195,066,060 | 195,266,358 | | 0% |
| | | | | | | | | | | |
| 1 Twelve-month trailing average. | | | | | | | | | | |
2 Based on shareholders' equity.
3 Adjusted net borrowings = short-term borrowings + long-term borrowings and future cash used in lease and pension liabilities – cash and cash equivalents and short-term financial assets.
4 EBITDA of last twelve months.
All income and expenses of the Reebok business are reported as discontinued operations as of the first quarter 2021. The prior year figures of the consolidated income statement and the
consolidated statement of cash flows have been restated to show the discontinued operations separately from continuing operations.
1
HALF YEAR REPORT 2021
1 2 3
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
BUSINESS PERFORMANCE
ECONOMIC AND SECTOR DEVELOPMENT
GLOBAL ECONOMY RECOVERS IN FIRST HALF OF 20211
Around the globe, economies have been recovering from the enormous negative shock the coronavirus
pandemic had caused. The pace of this recovery, however, remains uneven. Developed economies have
been benefiting from substantial vaccination progress and fiscal support, while world trade continues to
be constrained by supply bottlenecks and travel restrictions. Economic activity is being dampened among
developing economies by a partial withdrawal of macroeconomic support and somewhat limited access to
vaccines amid an emergence of new coronavirus variants. Against this backdrop, consumer confidence
rebounded despite elevated unemployment rates and heightened policy uncertainty.
SPORTING GOODS INDUSTRY RETURNS TO GROWTH IN THE FIRST SIX MONTHS OF 2021
In the first half of 2021, the global sporting goods industry recovered from negative impacts caused by
lockdown and quarantine measures as a result of the coronavirus pandemic. The return of major amateur
and professional sports events, as well as elevated health awareness, drove demand for sporting goods,
and consumers returned to retail stores in all parts of the world. The industry also benefited from excess
household spending, while coronavirus pandemic-related disruptions, supply chain challenges as well as
the geo-political situation weighed on the recovery of the sector.
INCOME STATEMENT
FOCUS ON CONTINUING OPERATIONS
Due to the planned divestiture of the Reebok business, all related income and expenses are reported as
discontinued operations at the end of June 2021. All figures related to the 2020 financial year in this report
refer to the company’s continuing operations unless otherwise stated.
ADIDAS WITH STRONG FINANCIAL PERFORMANCE IN THE FIRST HALF OF 2021
In the first half of 2021, revenues increased 40% on a currency-neutral basis. In euro terms, revenues
grew 34% to € 10.345 billion (2020: € 7.733 billion). This growth was achieved against the backdrop of
prolonged lockdowns in many parts of the world, industry-wide supply chain challenges and the geo-
political situation. From a category perspective, growth was driven by exceptional increases in all strategic
performance categories amid the return of major sports events, while the lifestyle category recorded
excellent growth as well. From a regional perspective, on a currency-neutral basis, sales were driven by
exceptional increases in all strategic growth markets EMEA, North America and Greater China. Both Asia-
Pacific and Latin America grew at strong double-digit rates as well.
Gross margin improved 1.4 percentage points to 51.8% in the first six months of 2021 (2020: 50.4%). While
negative currency fluctuations as well as the less favorable channel mix weighed on the gross margin
development, this was more than offset by a significantly better pricing mix due to lower promotional
activity as well as the non-recurrence of last year’s inventory allowances and purchase order cancellation
costs.
1 Source: World Bank, Global Economic Prospects.
2
HALF YEAR REPORT 2021
| 1 | | 2 | | 3 | | |
| --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
Royalty and commission income increased 29% to € 31 million (2020: € 24 million), while other operating
income declined 50% to € 10 million (2020: € 20 million).
| KEY FINANCIAL HIGHLIGHTS | | | | | | |
| ------------------------------------- | --- | --- | ------------ | ------------ | --------- | --- |
| | | | First half | First half | | |
| | | | | | | |
| | | | year 2021 | year 2020 | Change | |
| Operating Highlights (€ in millions) | | | | | | |
| Net sales1 | | | | 10,345 | 7,733 | 34% |
| Operating profit/(loss)1 | | | | 1,248 | (215) | n.a. |
| ------------------------ | --- | --- | --- | ------- | ------- | ---- |
| | | | | | | |
Net income/(loss) from continuing operations1 890 (217) n.a.
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
Net income/(loss) attributable to shareholders2 955 (264) n.a.
| | | | | | | |
| ------------- | --- | --- | --- | ------------- | ----- | ----- |
| Key Ratios | | | | | | |
| Gross margin1 | | | | 51.8% 50.4% | | 1.4pp |
Other operating expenses in % of net sales1 40.2% 53.8% (13.6pp)
| | | | | | | |
| ----------------- | --- | --- | --- | -------------- | -------- | --- |
| Operating margin1 | | | | 12.1% (2.8%) | 14.8pp | |
| | | | | | | |
Per Share of Common Stock (€)
| | | | | | | |
| ----------------- | --- | --- | --- | ------ | -------- | ---- |
| Diluted earnings2 | | | | 4.89 | (1.35) | n.a. |
| | | | | | | |
| | | | | | | |
| | | | | | | |
1 Figures reflect continuing operations as a result of the planned divestiture of the Reebok business.
| 2 Includes continuing and discontinued operations. | | | | | | |
| --------------------------------------------------- | --- | --- | --- | --- | --- | --- |
Other operating expenses, including depreciation and amortization, consist of marketing and point-of-sale
as well as operating overhead expenses. In the first half of 2021, other operating expenses were flat at
€ 4.154 billion (2020: € 4.156 billion). As a percentage of sales, other operating expenses decreased
13.6 percentage points to 40.2% (2020: 53.8%). Marketing and point-of-sale expenses amounted to
€ 1.157 billion (2020: € 1.174 billion), a 1% decline compared to the prior year. The company significantly
increased its digital marketing investments to support its DTC storytelling and e-commerce business,
while physical activities remained restrained in many parts of the world during a significant portion of the
first six months of the year. As a percentage of sales, marketing and point-of sale expenses declined by 4.0
percentage points to 11.2% in the first half of 2021 (2020: 15.2%). Operating overhead expenses remained
flat at € 2.997 billion (2020: € 2.983 billion). Efficiency measures and the non-recurrence of extraordinarily
high purchase order cancellation costs in the prior year period were offset by increased logistics costs
resulting from the significant e-commerce growth as well as temporary stranded costs related to the
intended divestiture of Reebok in the amount of around € 120 million. As a percentage of sales, operating
overhead expenses decreased 9.6 percentage points to 29.0% (2020: 38.6%). In the first six months of
2021, adidas recorded an operating profit of € 1.248 billion (2020: loss of € 215 million), resulting in an
operating margin of 12.1% (2020: -2.8%).
Financial income was down 67% to € 6 million (2020: € 17 million) while financial expenses decreased
9% to € 75 million (2020: € 82 million). Consequently, net financial expenses amounted to € 69 million
compared to € 65 million in the prior year’s period. The company recorded income taxes of € 289 million
resulting in a tax rate of 24.5%. During the six month period, the company incurred net income from
continuing operations of € 890 million (2020: loss of € 217 million), resulting in basic and diluted earnings
per share (EPS) from continuing operations of € 4.52 (2020: € -0.97). ► SEE FINANCIAL HIGHLIGHTS
In the first half of 2021, adidas’ gain from discontinued operations net of tax amounted to € 72 million
(2020: loss of € 74 million). As a result, the net income attributable to shareholders, which, in addition to
the net income from continuing operations, includes the gain from discontinued operations, came in at
€ 955 million (2020: loss of € 264 million). Consequently, both basic and diluted EPS from continuing and
discontinued operations were € 4.89 (2020: € -1.35).
3
HALF YEAR REPORT 2021
| 1 | | 2 | 3 | | |
| --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
The total number of shares outstanding remained stable in the first half of 2021. The average number of
shares used in the calculation of EPS was 195,066,060. ► SEE FINANCIAL HIGHLIGHTS
STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS
Changes in the statement of financial position are discussed in relation to the respective positions at the
end of June 2020.
PLANNED DIVESTITURE OF THE REEBOK BUSINESS IMPACTS BALANCE SHEET ITEMS
At June 30, 2021, all assets and liabilities of the Reebok business are presented as assets and liabilities
classified as held for sale due to a concrete plan to sell that business. At the end of the first half of 2021,
assets of € 1,674 million and liabilities of € 667 million were allocated to the Reebok business. However, a
restatement of the 2020 balance sheet items is not permitted under IFRS.
ASSETS
At the end of June 2021, total assets were up 8% to € 21.877 billion compared to the prior year (2020:
€ 20.301 billion), mainly driven by an increase in current assets.
Total current assets increased 29% to € 14.136 billion at the end of June 2021 (2020: € 10.931 billion).
Cash and cash equivalents were up 106% to € 4.151 billion (2020: € 2.018 billion), as net cash generated
from operating activities was only partly offset by net cash used for investing and financing activities.
Inventories decreased 22% to € 4.054 billion versus the prior year level of € 5.213 billion. This decline
reflects strong sell-through of the company’s products and successful inventory management across all
markets. On a currency-neutral basis, inventories also decreased 22%. Accounts receivable increased by
24% to € 2.324 billion (2020: € 1.869 billion), reflecting the company’s strong top-line growth. On a
currency-neutral basis, receivables were up 26%. Other current assets rose 1% to € 1.057 billion (2020:
€ 1.051 billion). Assets classified as held for sale increased to € 1.674 billion due to the planned
divestiture of the Reebok business. ► SEE NOTE 04
Total non-current assets decreased 17% to € 7.741 billion at the end of June 2021 (2020: € 9.369 billion).
Fixed assets were down 19% to € 6.248 billion (2020: € 7.739 billion). Deferred tax assets were down 1% to
€ 1.154 billion (2020: € 1.166 billion).
STRUCTURE OF STATEMENT OF FINANCIAL POSITION1 (IN % OF TOTAL ASSETS)
| | | | June 30, 2021 | June 30, 2020 | |
| ----------------------- | --- | --- | ---------------- | ---------------- | --- |
| | | | | | |
| Assets (€ in millions) | | | 21,877 | 20,301 | |
| Cash and cash equivalents | | | | 19.0 | 9.9 |
| ------------------------- | --- | --- | --- | ------ | --- |
| Accounts receivable | | | | 10.6 | 9.2 |
| ------------------- | --- | --- | --- | ------ | ---- |
| | | | | | |
| Inventories | | | | 18.5 | 25.7 |
| | | | | | |
| Fixed assets | | | | 28.6 | 38.1 |
| | | | | | |
| Other assets | | | | 23.3 | 17.1 |
| | | | | | |
 1 For absolute figu res, see adidas AG Consolidated Statement of Financial Position.
LIABILITIES AND EQUITY
Total current liabilities remained virtually flat at € 9.161 billion at the end of June 2021 (2020:
€ 9.137 billion). Accounts payable were down 16% to € 2.165 billion (2020: € 2.575 billion), mainly due to
the normalization of payment terms. On a currency-neutral basis, accounts payable also decreased 16%.
Short-term borrowings declined 44% to € 682 million at the end of June 2021 (2020: € 1,217 million),
mainly reflecting lower borrowings compared to prior year, partly offset by the reclassification of a
4
HALF YEAR REPORT 2021
| 1 | | 2 | 3 | | |
| --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
eurobond (nominal value € 600 million) due to its maturity in October 2021. Liabilities classified as held for
sale increased to € 667 million due to the planned divestiture of the Reebok business.
Total non-current liabilities increased 14% to € 5.357 billion at the end of June 2021 (2020: € 4.693 billion).
Long-term borrowings increased 55% to € 2.473 billion compared to the prior year (2020: € 1.599 billion),
reflecting various bond placements in the second half of 2020. The non-current lease liability declined 7%
to € 2.206 billion (2020: € 2.374 billion) mainly due to the reclassification related to the planned divestiture
of the Reebok business.
The total number of shares outstanding remained fairly stable and slightly increased by 33,171 shares to
195,066,060 at the end of June 2021 compared to the prior year. ► SEE FINANCIAL HIGHLIGHTS
Shareholders’ equity increased 14% to € 7.106 billion at the end of June 2021 (2020: € 6.230 billion) mainly
due to the increase in net income. Consequently, the company’s equity ratio increased 1.8 percentage
points from 30.7% to 32.5%.
STRUCTURE OF STATEMENT OF FINANCIAL POSITION1 (IN % OF TOTAL LIABILITIES AND EQUITY)
| | | | June 30, 2021 | June 30, 2020 | |
| --------------------------------------- | --- | --- | ---------------- | ---------------- | --- |
| | | | | | |
| Liabilities and equity (€ in millions) | | | 21,877 | 20,301 | |
| Short-term borrowings | | | | 3.1 | 6.0 |
| --------------------- | --- | --- | --- | ----- | --- |
| Accounts payable | | | | 9.9 | 12.7 |
| -------------------- | --- | --- | --- | -------- | -------- |
| | | | | | |
| Long-term borrowings | | | | 11.3 | 7.9 |
| | | | | | |
| Other liabilities | | | | 42.0 | 41.6 |
| Total equity | | | | 33.6 | 31.9 |
| | | | | | |
 1 For absolute fig ures, see adidas AG Consolidated Statement of Financial Position.
OPERATING WORKING CAPITAL
Operating working capital decreased 7% to € 4.213 billion at the end of June 2021 (2020: € 4.506 billion).
On a currency-neutral basis, operating working capital was down 5%. Average operating working capital
as a percentage of sales decreased 1.8 percentage points to 21.4% (2020: 23.2%), reflecting the company’s
accelerating top-line momentum and focus on tight inventory management. ► SEE FINANCIAL HIGHLIGHTS
LIQUIDITY ANALYSIS
In the first half of 2021, net cash generated from operating activities was € 1.172 billion (2020 net cash
used: € 824 million). This development was driven by the operating profit generated during the period as
well as the decrease in operating working capital. Net cash used in investing activities rose to € 86 million
(2020 net cash generated: € 51 million). The majority of investing activities in the first half of 2021 related
to spending for property, plant and equipment, such as investments into controlled space and the further
development of the company’s headquarter infrastructure. Net cash used in financing activities totaled
€ 945 million (2020 net cash generated: € 601 million), mainly due to the dividend paid to shareholders.
Also as a result of these developments, cash and cash equivalents increased € 2.133 billion from € 2.018
billion at the end of June 2020 to € 4.151 billion at the end of June 2021. Adjusted net borrowings at June
30, 2021, amounted to € 3.146 billion, representing a decline of € 1.842 billion compared to adjusted net
borrowings of € 4.988 billion at the end of June 2020. This development was mainly due to cash generated
from operating activities, partly offset by an increase in long-term borrowings. The company’s ratio of
adjusted net borrowings over EBITDA amounted to 0.9. ► SEE FINANCIAL HIGHLIGHTS
5
HALF YEAR REPORT 2021
| 1 | | | 2 | | | 3 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
BUSINESS PERFORMANCE BY SEGMENT
At the beginning of 2021, we launched our new strategy ‘Own the Game’ for the period until 2025. As part
of this strategy, we are focusing our growth efforts on the three strategic markets Greater China, EMEA
and North America. To be able to execute this strategy successfully, adidas has changed its organizational
structure. Since January 1, 2021, adidas manages Greater China as a separate market. The remaining
Asia-Pacific (APAC) market now comprises Japan, South Korea, Southeast Asia and the Pacific region. The
change reflects the increasing importance of Greater China as a growth market for the company. In
addition, adidas created the EMEA (Europe, Middle East and Africa) market. To better leverage economies
of scale, the company has integrated the former markets Europe, Russia/CIS and Emerging Markets into
the newly formed EMEA market. The markets North America and Latin America remain unchanged.
Compared to the first half of 2020 when adidas’ top line was negatively impacted by the very large number
of temporary store closures as result of the coronavirus pandemic, sales in all segments continued to
recover and grew at a double-digit rate in both Performance and Lifestyle in the first half of 2021. In most
segments, lower inventory write-offs and a more favorable pricing mix due to less promotional activity had
a positive effect on the gross margin development. At the same time, a less favorable channel and
category mix, negative currency developments and higher sourcing costs negatively impacted the gross
margin development in most segments. Operating expenses as a percentage of sales declined in all
segments, resulting in higher operating margins across all segments.
EMEA
Sales in EMEA increased 41% on a currency-neutral basis. In euro terms, sales increased 38% to
€ 3.680 billion.
Gross margin in EMEA decreased 0.1 percentage points to 50.8%, as lower inventory write-offs and a more
favorable pricing mix due to less promotional activity were more than offset by a less favorable channel
and category mix, negative currency developments, and higher sourcing costs. Operating expenses grew
3% to € 1.082 billion, reflecting higher marketing expenditure. As a percentage of sales, operating
expenses were down 10.1 percentage points to 29.4%. The operating margin increased 10.0 percentage
points to 21.5%. Operating profit in EMEA increased 157% to € 792 million.
| EMEA AT A GLANCE € IN MILLIONS | | | | | | | | |
| ------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
Change
| | | | | First half | | First half | | |
| --- | --- | --- | --- | ---------------- | --- | -------------- | --- | --- |
(currency-
| | | | | year 2021 | | year 2020 Change | neutral) | |
| -------------------------- | --- | --- | --- | ------------ | ------- | -------------------- | ----------- | --- |
| Net sales | | | | | 3,680 | 2,670 | 38% | 41% |
| Gross profit | | | | | 1,870 | 1,360 | 38% | – |
| | | | | | | | | |
| Gross margin | | | | 50.8% | | 50.9% (0.1pp) | | – |
| | | | | | | | | |
| Segmental operating profit | | | | | 792 | 308 | 157% | – |
| | | | | | | | | |
| Segmental operating margin | | | | 21.5% | | 11.5% 10.0pp | | – |
| | | | | | | | | |
| | | | | | | | | |
6
HALF YEAR REPORT 2021
| 1 | | | 2 | | | 3 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
NORTH AMERICA
Sales in North America increased 38% on a currency-neutral basis. In euro terms, sales rose 27% to
€ 2.406 billion.
Gross margin in North America increased 4.2 percentage points to 45.5%. Lower inventory write-offs and a
more favorable pricing mix due to less promotional activity more than offset a less favorable channel and
category mix, as well as higher sourcing costs. Operating expenses decreased 12% to € 661 million,
reflecting a decline in both marketing expenditure and operating overhead costs. Operating expenses as a
percentage of sales decreased 12.0 percentage points to 27.5%. The operating margin increased 16.2
percentage points to 18.6%. Operating profit in North America rose 893% to € 447 million.
| NORTH AMERICA AT A GLANCE € IN MILLIONS | | | | | | | | |
| ---------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
Change
| | | | | First half | | First half | | |
| --- | --- | --- | --- | ---------------- | --- | -------------- | --- | --- |
(currency-
| | | | | year 2021 | | year 2020 | Change neutral) | |
| -------------------------- | --- | --- | --- | ------------ | ------- | ------------ | ------------------- | --- |
| Net sales | | | | | 2,406 | 1,892 | 27% | 38% |
| Gross profit | | | | | 1,094 | 781 | 40% | – |
| | | | | | | | | |
| Gross margin | | | | 45.5% | | 41.3% | 4.2pp | – |
| | | | | | | | | |
| Segmental operating profit | | | | | 447 | 45 | 893% | – |
| Segmental operating margin | | | | 18.6% | | 2.4% | 16.2pp | – |
| | | | | | | | | |
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
GREATER CHINA
Sales in Greater China increased 38% on a currency-neutral basis. In euro terms, sales rose 37% to
€ 2.405 billion.
Gross margin in Greater China was down 2.1 percentage points to 54.0%. Lower inventory write-offs were
more than offset by a less favorable channel, category and pricing mix, negative currency developments
and higher sourcing costs. Operating expenses were up 21% to € 542 million, reflecting an increase in
both marketing expenditure and operating overhead costs. Operating expenses as a percentage of sales
declined 2.9 percentage points to 22.5%. The operating margin increased 0.8 percentage points to 31.5%.
Operating profit in Greater China rose 40% to € 758 million.
| GREATER CHINA AT A GLANCE € IN MILLIONS | | | | | | | | |
| ---------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
Change
| | | | | First half | | First half | | |
| --- | --- | --- | --- | ---------------- | --- | -------------- | --- | --- |
(currency-
| | | | | year 2021 | | year 2020 | Change neutral) | |
| -------------------------- | --- | --- | --- | ------------ | ------- | ------------ | ------------------- | --- |
| Net sales | | | | | 2,405 | 1,757 | 37% | 38% |
| Gross profit | | | | | 1,299 | 987 | 32% | – |
| | | | | | | | | |
| Gross margin | | | | 54.0% | | 56.2% | (2.1pp) | – |
| | | | | | | | | |
| Segmental operating profit | | | | | 758 | 540 | 40% | – |
| | | | | | | | | |
| Segmental operating margin | | | | 31.5% | | 30.7% | 0.8pp | – |
| | | | | | | | | |
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
7
HALF YEAR REPORT 2021
| 1 | | | 2 | | | 3 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
ASIA-PACIFIC
Sales in Asia-Pacific increased 26% on a currency-neutral basis. In euro terms, sales rose 21% to
€ 1.135 billion.
Gross margin in Asia-Pacific declined 0.3 percentage points to 52.4%. Lower inventory write-offs were
more than offset by a less favorable channel, category and pricing mix, negative currency developments
and higher sourcing costs. Operating expenses were down 7% to € 317 million, reflecting a decline in both
marketing expenditure and operating overhead costs. As a percentage of sales, operating expenses
decreased 8.5 percentage points to 27.9%. The operating margin increased 8.1 percentage points to
25.1%. Operating profit in Asia-Pacific rose 78% to € 285 million.
| ASIA-PACIFIC AT A GLANCE € IN MILLIONS | | | | | | | | |
| --------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
Change
| | | | | First half | | First half | | |
| --- | --- | --- | --- | ---------------- | --- | -------------- | --- | --- |
(currency-
| | | | | year 2021 | | year 2020 Change | neutral) | |
| -------------------------- | --- | --- | --- | ------------ | ------- | -------------------- | ----------- | --- |
| Net sales | | | | | 1,135 | 939 | 21% | 26% |
| Gross profit | | | | | 595 | 494 | 20% | – |
| | | | | | | | | |
| Gross margin | | | | 52.4% | | 52.6% (0.3pp) | | – |
| | | | | | | | | |
| Segmental operating profit | | | | | 285 | 160 | 78% | – |
| Segmental operating margin | | | | 25.1% | | 17.1% | 8.1pp | – |
| | | | | | | | | |
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
LATIN AMERICA
Sales in Latin America increased 81% on a currency-neutral basis. In euro terms, sales rose 59% to
€ 645 million.
Gross margin in Latin America increased 1.5 percentage points to 48.2%, as lower inventory write-offs and
a more favorable pricing mix due to less promotional activity more than offset a less favorable channel
mix, negative currency developments and higher sourcing costs. Operating expenses were down 3% to
€ 190 million, reflecting a decline in operating overhead costs. Operating expenses as a percentage of
sales were down 18.5 percentage points to 29.4%. The operating margin increased 19.1 percentage points
to 18.8%. Operating profit in Latin America rose to € 121 million.
| LATIN AMERICA AT A GLANCE € IN MILLIONS | | | | | | | | |
| ---------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
Change
| | | | | First half | | First half | | |
| --- | --- | --- | --- | ---------------- | --- | -------------- | --- | --- |
(currency-
| | | | | year 2021 | | year 2020 Change | neutral) | |
| -------------------------- | --- | --- | --- | ------------ | ----- | -------------------- | ----------- | --- |
| Net sales | | | | | 645 | 406 | 59% | 81% |
| Gross profit | | | | | 311 | 189 | 64% | – |
| | | | | | | | | |
| Gross margin | | | | 48.2% | | 46.7% | 1.5pp | – |
| | | | | | | | | |
| Segmental operating profit | | | | | 121 | (1) | n.a. | – |
| | | | | | | | | |
| Segmental operating margin | | | | 18.8% | | (0.2%) 19.1pp | | – |
| | | | | | | | | |
| | | | | | | | | |
8
HALF YEAR REPORT 2021
1 2 3
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
OUTLOOK2
GLOBAL ECONOMIC GROWTH TO RECOVER IN 20213
Global GDP is forecast to grow 5.6% in 2021, with the recovery projected to be more robust than initially
expected. Due to rapid vaccination progress in major economies, the recovery is expected to be unevenly
distributed and, in some cases, delayed. It largely reflects sharp rebounds in some major economies amid
highly unequal vaccine access, with many poorer countries facing subdued prospects. The strength of the
near-term global recovery is largely attributable to a few major economies, such as the United States and
China, with many emerging market and developing economies lagging behind. The United States and
China are each expected to contribute over one-quarter of global growth in 2021.
SPORTING GOODS INDUSTRY TO RECOVER NOTABLY IN 2021
In the absence of any major delay in the pandemic recovery or other macroeconomic shocks, we expect
the global sporting goods industry to recover notably in 2021. Consumer confidence is forecast to rebound
amid widespread vaccination and effective pandemic management as well as major sports events
returning to the global stage. While extended lockdown periods, quarantine measures and physical store
closures are still forecast to have an adverse impact in the short term, the sporting goods industry is
projected to remain fundamentally attractive in the long term, as existing global trends are accelerating.
Sports-inspired apparel and footwear (‘athleisure’) keeps evolving as a structural component of the
broader fashion landscape, complemented by increasing sports participation rates as well as rising
awareness for health and wellness. In addition, sustainability is expected to further gain in importance
amid growing environmental awareness of consumers. Moreover, purchasing behavior is forecast to
further shift toward online and social channels, and consumer insights generation along with the creation
of premium shopping experiences become increasingly important. For the sporting goods sector, risks
related to disruptions caused by the coronavirus pandemic, supply chain challenges, re-escalating trade
tensions as well as the geo-political situation remain.
ADIDAS INCREASES OUTLOOK FOR FULL YEAR 2021
While adidas continues to be impacted by Covid-19-related lockdowns, industry-wide supply-chain
challenges and the geo-political situation, the company has increased its top- and bottom-line outlook for
2021.
Given the accelerating top-line momentum, the company now expects currency-neutral sales to increase
at a rate of up to 20% year-over-year in 2021, driven by strong double-digit improvements in all markets.
This new outlook reflects sales growth of up to 7% in the second half of the year compared to the 2020
level, which will be fueled by an array of innovative product releases, including the re-introduction of NMD,
one of adidas’ most successful franchises in recent history. In addition, the company’s Futurecraft 4D
2 This Management Report contains forward-looking statements that reflect Management’s current view with respect to the future development of adidas. The
outlook is based on estimates that we have made on the basis of all the information available to us at the time of completion of this First Half Year Report. In
addition, such forward-looking statements are subject to uncertainties as described in the Risk and Opportunity Report of the adidas 2020 Annual Report which
are beyond the control of the company. In case the underlying assumptions turn out to be incorrect or described risks or opportunities materialize, actual
results and developments may materially deviate (negatively or positively) from those expressed by such statements. adidas does not assume any obligation to
update any forward-looking statements made in this Management Report beyond statutory disclosure obligations.
3 Source: World Bank, Global Economic Prospects.
9
HALF YEAR REPORT 2021
1 2 3
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
portfolio will be significantly expanded by the introduction of the 4D FWD Pulse. The scaling of the well-
established ZX franchise will continue with the introduction of the ZX 5K Boost. The Forum franchise, after
having been successfully incubated throughout the first two quarters of the year, will quadruple in size
during the second half of the year driven by several iterations as well as dedicated marketing activities. In
addition, major sport events, including the Olympic Games in Japan, the start of the club football season in
Europe and the kick-off to the NFL season in the US, as well as grassroots activities around the world will
provide ideal platforms to tell brand and product stories in front of global and local audiences.
The company’s full-year gross margin forecast continues to be for a level of around 52.0%. The operating
margin is now expected to increase to a level of between 9.5% and 10% (previously: 9% to 10%). Net
income from continuing operations is now projected to increase to a level of between € 1.4 billion and
€ 1.5 billion (previously: € 1.25 billion to € 1.45 billion). The company’s profitability outlook continues to
include temporary stranded costs related to the intended divestiture of Reebok. In 2021, these costs are
expected to amount to around € 250 million on the operating profit level and to impact net income from
continuing operations by approximately € 200 million. The medium-term growth outlook is not impacted
by these costs as adidas anticipates that only around 30% of the € 250 million will reoccur in 2022 and that
by 2023 the stranded costs will be fully eliminated.
RISKS AND OPPORTUNITIES
Uncertainties regarding the further development of the coronavirus pandemic remain high, in particular in
light of rising infection rates in Asia and Europe. Compared to the assessment in the 2020 Annual Report,
the company’s risk profile has slightly deteriorated due to an increased risk related to consumer demand
as a consequence of the geo-political situation and product supply due to additional supply chain
challenges. Macroeconomic, regulatory and currency risks could also have a high impact on the
company’s financial results. While we still see major opportunities related to consumer demand and
product offering as well as data analytics in the mid to long term, we consider upside potential related to
short-term opportunities as limited.
Nevertheless, given the company’s strong risk-bearing capacity due to its current liquidity position and
financial health, Management does not foresee any material jeopardy to the viability of the company as a
going concern. We remain confident that the earnings strength forms a solid foundation for our business
development and provides the necessary resources to pursue future opportunities.
10
HALF YEAR REPORT 2021
| 1 | | | | 2 | | 3 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
ADIDAS AG CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) € IN MILLIONS
 June 30, 2021 June 30, 2020 Change in % December 31, 2020
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | |
Assets
| Cash and cash equivalents | | | | | 4,151 | 2,018 | 105.7 | 3,994 |
| ---------------------------------- | --- | --- | --- | --------- | --------- | ------- | -------- | ------- |
| Short-term financial assets | | | | | – | 6 | n.a. | 0 |
| | | | | | | | | |
| Accounts receivable | | | | | 2,324 | 1,869 | 24.4 | 1,952 |
| | | | | | | | | |
| Other current financial assets | | | | | 810 | 653 | 24.0 | 702 |
| | | | | | | | | |
| Inventories | | | | | 4,054 | 5,213 | (22.2) | 4,397 |
| | | | | | | | | |
| Income tax receivables | | | | | 66 | 121 | (45.5) | 109 |
| | | | | | | | | |
| Other current assets | | | | | 1,057 | 1,051 | 0.6 | 999 |
| | | | | | | | | |
| Assets classified as held for sale | | | | | 1,674 | – | n.a. | 0 |
| | | | | | | | | |
| Total current assets | | | | 14,136 | 10,931 | | 29.3 | 12,154 |
| | | | | | | | | |
| | | | | | – | – | | |
Property, plant and equipment 2,065 2,293 (9.9) 2,157
| | | | | | | | | |
| -------------------------- | --- | --- | --- | --- | ------- | ------- | -------- | ----- |
| Right-of-use assets | | | | | 2,430 | 2,733 | (11.1) | 2,430 |
| | | | | | | | | |
| Goodwill | | | | | 1,199 | 1,258 | (4.7) | 1,208 |
| | | | | | | | | |
| Trademarks | | | | | 16 | 820 | (98.0) | 750 |
| | | | | | | | | |
| Other intangible assets | | | | | 261 | 284 | (7.9) | 252 |
| | | | | | | | | |
| Long-term financial assets | | | | | 276 | 351 | (21.4) | 353 |
| | | | | | | | | |
Other non-current financial assets 243 340 (28.7) 414
| Deferred tax assets | | | | | 1,154 | 1,166 | (1.0) | 1,233 |
| ------------------------ | --- | --- | --- | --- | ------- | ------- | -------- | ----- |
| | | | | | | | | |
| Other non-current assets | | | | | 96 | 124 | (22.5) | 103 |
| | | | | | | | | |
Total non-current assets 7,741 9,369 (17.4) 8,899
| | | | | | | | | |
| ------------- | --- | --- | --- | --------- | --------- | --- | ------ | ------- |
| Total assets | | | | 21,877 | 20,301 | | 7.8 | 21,053 |
| | | | | | | | | |
11
HALF YEAR REPORT 2021
| 1 | | | | 2 | | 3 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
ADIDAS AG CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) € IN MILLIONS
 June 30, 2021 June 30, 2020 Change in % December 31, 2020
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | |
Liabilities and equity
| Short-term borrowings | | | | | 682 | 1,217 | (44.0) | 686 |
| --------------------------------------- | --- | --- | --- | --- | -------- | -------- | -------- | ------ |
| Accounts payable | | | | | 2,165 | 2,575 | (15.9) | 2,390 |
| | | | | | | | | |
| Current lease liabilities | | | | | 480 | 639 | (24.9) | 563 |
| | | | | | | | | |
| Other current financial liabilities | | | | | 340 | 265 | 28.5 | 446 |
| | | | | | | | | |
| Income taxes | | | | | 686 | 588 | 16.5 | 562 |
| | | | | | | | | |
| Other current provisions | | | | | 1,433 | 1,373 | 4.3 | 1,609 |
| | | | | | | | | |
| Current accrued liabilities | | | | | 2,260 | 1,933 | 16.9 | 2,172 |
| | | | | | | | | |
| Other current liabilities | | | | | 450 | 547.0 | (17.6) | 398 |
| | | | | | | | | |
| Liabilities classified as held for sale | | | | | 667 | – | n.a. | – |
| | | | | | | | | |
| Total current liabilities | | | | | 9,161 | 9,137 | 0.3 | 8,827 |
| | | | | | | | | |
| Long-term borrowings | | | | | 2,473 | 1,599 | 54.7 | 2,482 |
| | | | | | | | | |
Non-current lease liabilities 2,206 2,374 (7.1) 2,159
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
Other non-current financial liabilities 98 46 113.0 115
| | | | | | | | | |
| -------------------------------- | --- | --- | --- | --- | ----- | ----- | ------- | --- |
| Pensions and similar obligations | | | | | 234 | 245 | (4.5) | 284 |
| | | | | | | | | |
Deferred tax liabilities 189 224 (15.7) 241
| Other non-current provisions | | | | | 134 | 179 | (25.4) | 229 |
| ------------------------------- | --- | --- | --- | --- | ----- | ----- | -------- | --- |
| | | | | | | | | |
| Non-current accrued liabilities | | | | | 6 | 9 | (35.4) | 8 |
| | | | | | | | | |
| Other non-current liabilities | | | | | 18 | 16 | 11.9 | 17 |
| | | | | | | | | |
Total non-current liabilities 5,357 4,693 14.2 5,535
| | | | | | | | | |
| ------------------------- | --- | --- | --- | --- | -------- | ------------- | ------- | ------ |
| Share capital | | | | | 195 | 195 | 0.0 | 195 |
| | | | | | | | | |
| Reserves | | | | | (190) | (2) 8,799.1 | | (474) |
| | | | | | | | | |
| Retained earnings | | | | | 7,101 | 6,037 | 17.6 | 6,733 |
| | | | | | | | | |
| Shareholders’ equity | | | | | 7,106 | 6,230 | 14.0 | 6,454 |
| | | | | | | | | |
| Non-controlling interests | | | | | 253 | 240 | 5.2 | 237 |
| | | | | | | | | |
| | | | | | | | | |
| Total equity | | | | | 7,358 | 6,471 | 13.7 | 6,691 |
| | | | | | | | | |
Total liabilities and equity 21,877 20,301 7.8 21,053
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
12
| | | | | | | HALF YEAR REPORT 2021 | | | | | | | |
| ---- | --- | --- | --- | --- | --- | ---------------------- | --- | --- | --- | --- | --- | --- | --- |
| | | 1 | | | 2 | | | | 3 | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
CONDENSED CONSOLIDATED INCOME STATEMENT
ADIDAS AG CONDENSED CONSOLIDATED INCOME STATEMENT (IFRS) € IN MILLIONS1
| | | | | | | | | | | Second | | Second | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ------- | --- | ------- | --- |
 First half First half quarter quarter
 year 2021 year 2020 Change 2021 2020 Change
| Net sales | | | | | | 10,345 | | 7,733 | 33.8% | 5,077 | | 3,352 | 51.5% |
| --------- | --- | --- | --- | --- | --- | -------- | --- | ----- | ------- | ------- | --- | ------- | ----- |
Cost of sales 4,983 3,835 30.0% 2,446 1,631 49.9%
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Gross profit 5,362 3,898 37.5% 2,632 1,720 53.0%
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(% of net sales) 51.8% 50.4% 1.4pp 51.8% 51.3% 0.5pp
Royalty and commission income 31 24 29.5% 17 9 95.7%
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Other operating income 10 20 (50.2%) 2 18 (86.1%)
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Other operating expenses 4,154 4,156 (0.0%) 2,107 2,010 4.9%
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(% of net sales) 40.2% 53.8% (13.6pp) 41.5% 60.0% (18.5pp)
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Marketing and point-of-sale expenses 1,157 1,174 (1.4%) 616 525 17.2%
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(% of net sales) 11.2% 15.2% (4.0pp) 12.1% 15.7% (3.5pp)
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Operating overhead expenses2 2,997 2,983 0.5% 1,492 1,484 0.5%
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(% of net sales) 29.0% 38.6% (9.6pp) 29.4% 44.3% (14.9pp)
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Operating profit / (loss) 1,248 (215) n.a. 543 (263) n.a.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(% of net sales) 12.1% (2.8%) 14.8pp 10.7% (7.8%) 18.5pp
| Financial income | | | | | | | 6 | 17 | (67.2%) | | 4 | 13 | (70.0%) |
| ------------------ | --- | --- | --- | --- | --- | --- | ---- | --- | --------- | --- | ---- | ---- | ------- |
| | | | | | | | | | | | | | |
| Financial expenses | | | | | | | 75 | 82 | (8.7%) | | 37 | 42 | (11.0%) |
| | | | | | | | | | | | | | |
Income / (loss) before taxes 1,179 (279) n.a. 510 (292) n.a.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(% of net sales) 11.4% (3.6%) 15.0pp 10.0% (8.7%) 18.8pp
| Income taxes | | | | | | | 289 | (63) | | n.a. 123 | | (49) | n.a. |
| ------------ | --- | --- | --- | --- | --- | --- | ----- | ---- | --- | ---------- | --- | ------ | ---- |
| | | | | | | | | | | | | | |
(% of / income / (loss) before taxes) 24.5% 22.4% 2.1pp 24.0% 16.9% 7.1pp
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Net income / (loss) from continuing operations 890 (217) n.a. 387 (243) n.a.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(% of net sales) 8.6% (2.8%) 11.4pp 7.6% (7.2%) 14.9pp
Gain / (loss) from discontinued operations, net of tax 72 (74) n.a. 20 (74) n.a.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Net income / (loss) 962 (291) n.a. 407 (317) n.a.
(% of net sales) 9.3% (3.8%) 13.1pp 8.0% (9.4%) 17.5pp
Income / (loss) attributable to shareholders 955 (264) n.a. 397 (295) n.a.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(% of net sales) 9.2% (3.4%) 12.6pp 7.8% (8.8%) 16.6pp
Net income / (loss) attributable to non-controlling interests 7 (27) n.a. 11 (22) n.a.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Basic earnings per share from continuing operations (in €) 4.52 (0.97) n.a. 1.93 (1.13) n.a.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Diluted earnings per share from continuing operations (in €) 4.52 (0.97) n.a. 1.93 (1.13) n.a.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | | | | | | |
Basic earnings per share from continuing and discontinued
| | | | | | | | 4.89 | (1.35) | | n.a. 2.03 | | (1.51) | n.a. |
| --- | --- | --- | --- | --- | --- | --- | -------- | ------- | --- | -------------- | --- | ---------- | ----- |
 operations (in €)
| D il u | t e d e a r | n i n g s per share from continuing and discontinued | | | | | | | | | | | |
| ------ | -------------- | ------------------------------------------------------ | --- | --- | --- | --- | ------- | ------- | --- | ------------- | --- | --------- | ----- |
| | | ) | | | | | 4.89 | (1.35) | | n.a. 2.03 | | (1.51) | n.a. |
| op e | r a t io n s | (i n € | | | | | | | | | | | |
 1 Comparative informa tion for 2020 has been adjusted due to the classification of th e R eebok business a s discontinued o pe rations.
| | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
2 Aggregated distribution and selling expenses, general and administration expenses, sundry expenses and impairment losses (net) on accounts receivable and contract assets.
13
HALF YEAR REPORT 2021
| 1 | | | 2 | | | | | 3 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
ADIDAS AG CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) € IN MILLIONS
| | | | | | First half | | First half | | Second | | Second |
| --- | --- | --- | --- | ---- | ----------- | --- | ----------- | ----------------- | ------- | ------------- | ------- |
| | | | | | year 2021 | | year 2020 | quarter 2021 | | | |
| | | | | | | | | | | quarter 2020 | |
Net income / (loss) after taxes 962 (291) 407 (317)
Items of other comprehensive income that
will not be reclassified subsequently to
profit or loss
| | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Remeasurements of defined benefit plans
| | | | | | | 43 | | 0 | | 6 | (19) |
| --- | --- | --- | --- | --- | --- | ---- | --- | --- | --- | --- | ---- |
(IAS 19), net of tax1
| Net (loss) / gain on other equity investments | | | | | | | | | | | |
| ---------------------------------------------- | --- | --- | --- | --- | --- | ----- | --- | ----- | --- | --- | --- |
| | | | | | | (1) | | (2) | | 3 | (2) |
(IFRS 9), net of tax
| Subtotal of items of other comprehensive | | | | | | | | | | | |
| ----------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
income that will not be reclassified 41 (1) 10 (21)
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
| | | | | | | 100 | | 142 | | (6) | (120) |
| --- | --- | --- | --- | --- | --- | ----- | --- | ----- | --- | ----- | ----- |
net foreign investment hedges, net of tax
| Net (loss) / gain on cost of hedging reserve – | | | | | | | | | | | |
| ----------------------------------------------- | --- | --- | --- | --- | --- | ----- | --- | --- | --- | ----- | --- |
| | | | | | | (5) | | 9 | | (2) | 9 |
options, net of tax
| Net gain / (loss) on cost of hedging reserve – | | | | | | | | | | | |
| ----------------------------------------------- | --- | --- | --- | --- | --- | ---- | --- | ------ | --- | --- | --- |
| | | | | | | 10 | | (17) | | 5 | 23 |
forward contracts, net of tax
Currency translation differences 145 (177) 8 (34)
Subtotal of items of other comprehensive
| | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
income that will be reclassified to profit or 251 (44) 5 (123)
loss when specific conditions are met
| Other comprehensive income | | | | | | 292 | | (45) | | 14 | (143) |
| --------------------------- | --- | --- | --- | --- | --- | ------ | --- | ------- | --- | ----- | ------ |
| | | | | | | | | | | | |
Total comprehensive income 1,254 (336) 422 (460)
| | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Attributable to shareholders of adidas AG 1,239 (311) 413 (432)
| | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Attributable to non-controlling interests 15 (24) 8 (28)
 1 Includes actuarial gains or losses relating to defined benefit obli ga tions, return on plan as sets (excluding inter e st income) and the ass e t c eiling effect.
14
| | | | | | | | HALF YEAR REPORT 2021 | | | | | | | | |
| ---- | --- | --- | --- | --- | --- | --- | ---------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 1 | | | | 2 | | | | 3 | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
ADIDAS AG CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS) € IN MILLIONS
Cost of
 Cumulative Cost of hedging
| | | | | | currency | | hedging | reserve - | | | | Share- | | Non- | |
| --- | --- | --- | --- | --- | --------- | --- | -------- | ---------- | --- | --- | --- | ------- | --- | ----- | --- |
Share Capital translation Hedging reserve - forward Other Retained holders’ controlling Total
 capital reserve differences reserve options contracts reserves earnings equity interests equity
Balance at
 196 887 (470) (150) (10) 6 (218) 6,555 6,796 261 7,058
December 31, 2019
Other comprehensive
| | | | | | (180) | | 142 | 9 | (17) | (1) | | (48) | | 3 | (45) |
| --- | --- | --- | --- | --- | ------- | --- | ----- | --- | ------ | --- | --- | ------ | --- | --- | ---- |
income
Net income (264) (264) (27) (291)
Total comprehensive
 (180) 142 9 (17) (1) (264) (311) (24) (336)
income
Repurchase of
| | | | (1) | | | | | | | | (256) | (257) | | | (257) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ------- | ------- | --- | --- | ----- |
adidas AG shares
| Repurchase of | | | | | | | | | | | | | | | |
| -------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
adidas AG shares due to
| equity-settled share- | | | (0) | | | | | | | | (14) | (14) | | | (14) |
| --------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ------ | ------ | --- | --- | ---- |
based payment
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Reissuance of treasury
shares due to e quity-
| settled share-based | | | 0 | | | | | | | | 17 | | 17 | | 17 |
| -------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---- | --- | --- | --- | --- |
payment
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Equity-settled share-
| based pa yment | | | | | | | | | | | (1) | | (1) | | (1) |
| -------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ----- | --- | --- | --- | --- |
First-time consolidation
due to obtaining control
| | | | | | | | | | | | | | | 3 | 3 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
in accordance with
IFRS 10
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Balance at 195 887 (650) (9) (1) (11) (220) 6,037 6,230 240 6,471
June 30, 2020
Balance at
 195 887 (850) (250) (3) (23) (235) 6,733 6,454 237 6,691
December 31, 2020
Other comprehensive
| | | | | | 137 | | 100 | (5) | 10 | 41 | | 284 | | 9 | 292 |
| --- | --- | --- | --- | --- | ----- | --- | ----- | ----- | ---- | --- | --- | ----- | --- | --- | --- |
income
| Net income | | | | | | | | | | | 955 | 955 | | 7 | 962 |
| ---------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ------- | ------ | --- | ---- | ---- |
Total comprehensive
 137 100 (5) 10 41 955 1,239 15 1,254
income
Repurchase of
adidas AG shares due to
| | | | (1) | | | | | | | | (15) | (15) | | | (15) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ------ | ------ | --- | --- | ---- |
equity-settled share-
based payment
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Reissuance of treasury
shares due to e quity-
| | | | 1 | | | | | | | | 14 | | 15 | | 15 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---- | --- | --- | --- | --- |
settled share-based
payment
| | | | | | | | | | | | | | | | |
| ---------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ------- | ------- | --- | --- | ----- |
| Dividend payment | | | | | | | | | | | (585) | (585) | | | (585) |
Equity-settled share-
based payment (1) (1) (1)
| Balance at | | | | | | | | | | | | | | | |
| ------------ | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
 195 887 (712) (150) (7) (14) (194) 7,101 7,106 253 7,358
June 30, 2021
15
| | | | | | HALF YEAR REPORT 2021 | | | | | |
| ---- | --- | --- | --- | --- | ---------------------- | --- | --- | --- | --- | --- |
| | 1 | | | 2 | | | 3 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
CONSOLIDATED STATEMENT OF CASH FLOWS
ADIDAS AG CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS) € IN MILLIONS
| | | | | | | | | First half | | First half |
| --- | --- | --- | --- | --- | --- | --- | --- | ----------------- | --- | ------------ |
| | | | | | | | | year 2021 | | year 2020 |
| | | | | | | | | | | |
Operating activities:
| Income / (loss) before taxes | | | | | | | | | 1,179 | (279) |
| ---------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | ------- | ------- |
| | | | | | | | | | | |
Adjustments for:
Depreciation, amortization and impairment losses 568 645
| Reversals of impairment losses | | | | | | | | | (7) | (1) |
| --------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | ----- | ---- |
| | | | | | | | | | | |
| Interest income | | | | | | | | | (5) | (16) |
| | | | | | | | | | | |
| Interest expense | | | | | | | | | 69 | 77 |
| | | | | | | | | | | |
| Unrealized foreign exchange losses, net | | | | | | | | | 9 | 9 |
| | | | | | | | | | | |
Losses on sale of property, plant and equipment and intangible assets, net 4 3
| | | | | | | | | | | |
| -------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | ----- | --- |
| Other non-cash (income) /expense | | | | | | | | | (6) | 0 |
| | | | | | | | | | | |
Operating profit before working capital changes 1,810 438
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(Increase) / decrease in receivables and other assets (553) 610
| Decrease / (increase) in inventories | | | | | | | | | 13 | (1,142) |
| ------------------------------------ | --- | --- | --- | --- | --- | --- | --- | --- | ---- | ------- |
| | | | | | | | | | | |
Decrease in accounts payable and other liabilities (82) (539)
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Cash generated from / (used in) operations before taxes 1,189 (632)
| | | | | | | | | | | |
| ----------------- | --- | --- | --- | --- | --- | --- | --- | --- | ------- | ----- |
| Income taxes paid | | | | | | | | | (112) | (186) |
Net cash generated from / (used in) operating activities – continuing operations 1,077 (819)
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Net cash generated from / (used in) operating activities – discontinued operations 95 (6)
Net cash generated from / (used in) operating activities 1,172 (824)
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | | | |
Investing activities:
Purchase of trademarks and other intangible assets (53) (33)
| Purchase of property, plant and equipment | | | | | | | | | (130) | (176) |
| --------------------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | ------- | ----- |
| | | | | | | | | | | |
| Proceeds from sale of property, plant and equipment | | | | | | | | | 0 | 2 |
| | | | | | | | | | | |
| Proceeds from sale of a disposal group | | | | | | | | | 12 | – |
| | | | | | | | | | | |
| Proceeds from disposal of discontinued operations | | | | | | | | | 29 | – |
| | | | | | | | | | | |
| Proceeds from sale of short-term financial assets | | | | | | | | | 0 | 288 |
| | | | | | | | | | | |
Purchase of investments and other long-term assets 55 (37)
| | | | | | | | | | | |
| ----------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Interest received | | | | | | | | | 5 | 16 |
| | | | | | | | | | | |
Net cash (used in) / generated from investing activities – continuing operations (81) 59
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Net cash used in investing activities – discontinued operations (5) (8)
Net cash (used in) / generated from investing activities 86 51
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ----- |
| | | | | | | | | | | |
16
| | | | | HALF YEAR REPORT 2021 | | | | | |
| ---- | --- | --- | --- | ---------------------- | --- | --- | --- | --- | --- |
| | 1 | | | 2 | | 3 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
ADIDAS AG CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS) € IN MILLIONS
| | | | | | | | First half | | First half |
| --- | --- | --- | --- | --- | --- | --- | ----------------- | ---------- | ----------- |
| | | | | | | | year 2021 | year 2020 | |
| Financing activities: | | | | | | | | | |
| ------------------------------------------- | --- | --- | --- | --- | --- | --- | --- | ------- | ----- |
| Reverse transaction of buyback of Eurobonds | | | | | | | | – | 11 |
| Interest paid | | | | | | | | (54) | (66) |
| | | | | | | | | | |
| Repayments of lease liabilities | | | | | | | | (267) | (226) |
| | | | | | | | | | |
| Dividend paid to shareholders of adidas AG | | | | | | | | (585) | – |
| | | | | | | | | | |
| Repurchase of treasury shares | | | | | | | | – | (257) |
| | | | | | | | | | |
Repurchase of treasury shares due to share-based payments (15) (14)
| | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Proceeds from reissuance of treasury shares due to share-based payments 12 12
| | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(Repayments of) / proceeds from short-term borrowings (17) 1,165
| | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Net cash (used in) / generated from financing activities – continuing operations (926) 624
| | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Net cash used in financing activities – discontinued operations (19) (23)
Net cash (used in) / generated from financing activities (945) 601
| | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Effect of exchange rates on cash | | | | | | | | 15 | (29) |
| --------------------------------- | --- | --- | --- | --- | --- | --- | --- | ----- | ----- |
| | | | | | | | | | |
Increase / (decrease) of cash and cash equivalents 157 (201)
Cash and cash equivalents at beginning of year 3,994 2,220
| | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Cash and cash equivalents at end of period 4,151 2,018
| | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
17
HALF YEAR REPORT 2021
1 2 3
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
EXPLANATORY NOTES TO THE CONDENSED INTERIM
CONSOLIDATED FINANCIAL STATEMENTS (IFRS) AS
AT JUNE 30, 2021
01 GENERAL
The interim consolidated financial statements of adidas AG and its subsidiaries (collectively ‘adidas,’ the
‘Group’ or ‘the company’) for the first half year ending June 30, 2021, are prepared in compliance with
International Financial Reporting Standards (IFRS), as endorsed by the European Union (EU). The company
applied all International Financial Reporting Standards issued by the International Accounting Standards
Board (IASB) and Interpretations of the IFRS Interpretations Committee effective as at June 30, 2021,
insofar as they have already been adopted into European law.
These interim consolidated financial statements were prepared in compliance with International
Accounting Standard IAS 34 ‘Interim Financial Reporting.’ Accordingly, these interim consolidated
financial statements do not include all of the information and notes required for consolidated financial
statements at financial year-end. Therefore, these interim consolidated financial statements should be
read in conjunction with the 2020 annual consolidated financial statements. The accounting policies as
well as principles, practices and presentation applied in the consolidated financial statements for the year
ending December 31, 2020, also apply to the interim consolidated financial statements for the first half
year ending June 30, 2021.
The following new accounting standards and interpretations as well as amendments to existing standards,
which were issued by the IASB and are effective in the EU for financial years beginning on January 1, 2021,
have been applied for the first time:
Interest Rate Benchmark Reform Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
─
Amendments to IFRS 4 Incurance Contracts - deferral of IFRS 9
─
These do not have any material impact on the interim consolidated financial statements of adidas AG.
Further information can be found in the 2020 Annual Report.
New accounting standards and interpretations as well as amendments to existing standards that are not
yet effective in the EU or effective for financial years beginning after January 1, 2021, are not expected to
have any material impact on the consolidated financial statements.
The amendment to IFRS 16 ‘Covid-19-Related Rent Concessions’ published by the IASB on May 28, 2020,
and effective for financial years beginning on or after June 1, 2020, was originally limited to rent
concessions that were due on or before June 30, 2021. The IASB has decided to extend the period during
which the concessions can be applied to financial years beginning on or after April 1, 2021. This decision
will not impact adidas, as adidas has not applied and will not apply the option provided in this amendment
regarding the treatment of rent concessions relating to the coronavirus pandemic. The option allows
lessees to treat rental concessions in connection with the coronavirus pandemic not as lease
modifications within the meaning of IFRS 16 but to realize the effects of the rental concessions in the
periods in which they are granted.
18
HALF YEAR REPORT 2021
1 2 3
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
The preparation of financial statements in conformity with IFRS requires the use of assumptions and
estimates that affect reported amounts and related disclosures. The first half of 2020 was significantly
impacted by the coronavirus pandemic. Further information can be found in Note 8 of the first half year
report 2020. Compared to the first half of 2020, business development in the first half of 2021 was less
impacted by the effects of the coronavirus pandemic. Nevertheless, due to the ongoing pandemic, it is still
difficult to predict the resulting effects on assets and liabilities as well as income and expenses. Estimates
and assumptions relevant to the financial statements were made to the best of our knowledge, based on
current events and measures. In particular, judgments and discretion are used in assessing the
recoverability of deferred tax assets, in impairment tests for non-financial assets, in determining
allowances for inventories and accounts receivable, and in the calculation of provisions.
There were no changes in the scope of consolidation in the first half of 2021.
The interim consolidated financial statements and the interim Group management report were not audited
in accordance with § 317 German Commercial Code (Handelsgesetzbuch – HGB) nor reviewed in
accordance with § 115 section 5 German Securities Trading Act (Wertpapierhandelsgesetz – WpHG) by an
auditor.
Costs that are incurred unevenly during the financial year are anticipated or deferred in the interim
consolidated financial statements only if it would be also appropriate to anticipate or defer such costs at
the end of the financial year.
The results of operations for the first half year ending June 30, 2021, are not necessarily indicative of
results to be expected for the entire year.
The interim consolidated financial statements are presented in euros (€) and, unless otherwise stated, all
values are presented in millions of euros (€ in millions). Due to rounding principles, numbers presented
may not sum up exactly to totals provided.
02 REVENUE
The sales of the company in certain product categories are seasonal, and therefore, revenues and
attributable earnings may vary within the financial year. In the years before the coronavirus pandemic,
sales and earnings tended to be strongest in the first and third quarters of the financial year because
these coincided with the launch of the spring/summer and fall/winter collections, respectively. In the first
half of 2021, sales stabilized but variations may still occur due to the ongoing coronavirus pandemic. Shifts
in the share of sales and attributable earnings of particular product categories or in the regional
composition may occur throughout the year. A disaggregation of revenue into product categories is
contained in these Notes. ► SEE NOTE 08
03 DISCONTINUED OPERATIONS
On February 16, 2021, the company decided to begin a formal process aimed at divesting Reebok. Due to
the concrete plans to sell Reebok and the approval by the respective committees, the Reebok operating
business is reported as discontinued operations and classified as a disposal group held for sale at the end
of the first quarter. The fair value was determined based on the basis of existing non-binding purchase
price offers at this point of time. The transaction is expected to be completed later in 2021.
19
HALF YEAR REPORT 2021
| 1 | | 2 | 3 | | |
| --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
Reebok was previously neither classified as assets held for sale nor as discontinued operations. The prior
year figures of the consolidated income statement and the consolidated statement of cash flows have been
restated to show the discontinued operations separately from continuing operations.
The results of the Reebok operations are shown as discontinued operations in the consolidated income
statement:
DISCONTINUED OPERATION REEBOK
First half First half
| € in millions | | | year 2021 | year 2020 | |
| --------------------- | --- | --- | ------------ | ------------ | ----- |
| Operational business | | | | | |
| Net Sales | | | | 823 | 600 |
| Expenses | | | | (666) | (658) |
| | | | | | |
Gain / (loss) from operating activities before taxes 157 (58)
| | | | | | |
| ------------ | --- | --- | --- | ------ | ---- |
| Income taxes | | | | (78) | (12) |
Gain / (loss) from operating activities, net of tax 78 (69)
| | | | | | |
| ----------------------------- | --- | --- | --- | ------ | --- |
| Transaction costs, net of tax | | | | (10) | – |
Gain / (loss) from discontinued operations, net of tax 68 (69)
| | | | | | |
| --- | --- | --- | --- | --- | --- |
Basic earnings per share from discontinued operations (€) 0.35 (0.36)
Diluted earnings per share from discontinued operations (€) 0.35 (0.36)
 Rounding differences may arise in percentages and totals for figures presented in millions as calculation is alway s b ased on the figures s ta ted in thousands.
Gains from discontinued operations for the first half year ending June 30, 2021, in an amount of
€ 72 million (2020: losses of € 74 million) are entirely attributable to the shareholders of adidas AG. The
gains from discontinued operations also include besides Reebok an amount of € 4 million (2020: loss
€ 5 million) relating to divestitures in previous years.
Total net loss of cumulative foreign currency translation differences for discontinued operations reflected
within equity amount to € 225 million. For the first half year 2021 the loss within equity amount to
€ 125 million. For 2020 the gain within equity amount to € 368 million.
The income tax expense related to discontinued operations amounts to € 76 million. This amount includes
the revaluation of deferred tax assets and liabilities as a result of the tax rate change in the UK
(€ 34 million).
20
HALF YEAR REPORT 2021
| 1 | 2 | 3 | | |
| --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
04 ASSETS AND LIABILITIES HELD FOR SALE
At June 30, 2021, the disposal group Reebok was stated at carrying amount and comprised the following
major classes of assets and liabilities:
GROUP OF ASSETS AND LIABILITIES
Assets classified as held-for-sale € in millions June 30, 2021
| | | | | |
| ------------------- | --- | --- | --- | --- |
| Accounts receivable | | | | 207 |
| Inventories | | | | 388 |
| Other current financial assets | | | | 36 |
| ------------------------------ | --- | --- | --- | --- |
| Other current assets | | | | 42 |
| --------------------- | --- | --- | --- | ---- |
| | | | | |
| Total current assets | | | | 673 |
| Long-term financial assets | | | | 12 |
| ----------------------------- | --- | --- | --- | --- |
| Property, plant and equipment | | | | 66 |
| | | | | |
| Right-of-use assets | | | | 108 |
| | | | | |
| Goodwill | | | | 27 |
| Trademarks | | | | 757 |
| ------------------ | --- | --- | --- | --- |
| | | | | |
| Deferred tax asset | | | | 24 |
| Other non-current financial assets | | | | 6 |
| ---------------------------------- | --- | --- | --- | --- |
| Total non-current assets | | | | 1,000 |
| ------------------------- | --- | --- | --- | -------- |
| Total assets | | | | 1,673 |
Liabilities classified as held for sale € in millions June 30, 2021
| | | | | |
| ----------------------- | --- | --- | --- | --- |
| Accounts payable | | | | 174 |
| Current lease liability | | | | 29 |
| Other current provisions | | | | 60 |
| ------------------------ | --- | --- | --- | --- |
| Other current accrued liabilities | | | | 112 |
| ---------------------------------------------- | --- | --- | --- | ---- |
| | | | | |
| Other current financial liabilities | | | | 12 |
| | | | | |
| Other current liabilities | | | | 18 |
| | | | | |
| Total current liabilities | | | | 405 |
| | | | | |
| Non-current lease liability | | | | 123 |
| Provision for pensions and similar obligations | | | | 6 |
| | | | | |
| Deferred tax liability | | | | 108 |
| | | | | |
| Other non-current provisions | | | | 18 |
| Other non-current accrued liabilities | | | | 2 |
| ---------------------------------------- | --- | --- | --- | ---- |
| | | | | |
| Other non-current financial liablilities | | | | 4 |
| | | | | |
| Other non-current liablilities | | | | 2 |
| | | | | |
| Total non-current liabilities | | | | 263 |
| | | | | |
| Total liabilities | | | | 667 |
At June 30, 2021, the company assessed the fair value of the disposal group on the basis of existing non-
binding purchase price offers at this point of time. There was no indication for any impairment of the
disposal group.
Further information on the allocation of goodwill is contained in these Notes. ► SEE NOTE 09
| | | | | |
| --- | --- | --- | --- | --- |
21
HALF YEAR REPORT 2021
| 1 | | | | 2 | | | | 3 | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
05 SHAREHOLDERS’ EQUITY
During the period from January 1, 2021, to June 30, 2021, the nominal capital of adidas AG remained
unchanged. Consequently, on June 30, 2021, the nominal capital of adidas AG amounted to € 200,416,186
divided into 200,416,186 registered no-par-value shares.
In the 2016 financial year, adidas AG introduced an employee stock purchase plan in favor of employees of
adidas AG and its affiliated companies.
adidas AG purchased shares in connection with this employee stock purchase plan in the first six months
of the 2021 financial year. More details on the repurchase of adidas AG shares and use of treasury shares
in connection with the employee stock purchase plan in the first six months of the 2021 financial year are
set out in the tables ‘Repurchase of adidas AG shares and use of treasury shares in the context of the
employee stock purchase plan2021’ and ‘Repurchase of adidas AG shares and use of treasury shares in
the context of the employee stock purchase plan 2021/matching shares’.
REPURCHASE OF ADIDAS AG SHARES AND USE OF TREASURY SHARES IN THE CONTEXT OF THE EMPLOYEE STOCK PURCHASE PLAN 2021
Total price
| | | | | | in € | Average | | Amount | | Amount | | |
| --- | --- | --- | --- | ----------- | -------- | --------- | ------ | ---------- | --- | ---------- | --- | --- |
| | | | | (excluding | | purchase | | in the | | in the | | |
| | | | | incidental | | | price | nominal | | nominal | | |
Purchase Number of purchasing per share capital capital Issuance date
date shares costs) in € in € in % to employees
| January 8, | | | | | | | | | | | January 12, | |
| ----------- | --- | ------ | --- | ------------ | --- | ------ | --- | ------ | --- | ---- | ------------ | ----- |
| | | 23,652 | | 6,992,862.30 | | 295.66 | | 23,652 | | 0.01 | | |
| 2021 | | | | | | | | | | | | 2021 |
| April 9, | | | | | | | | | | | April 13, | |
| | | 24,032 | | 6,757,458.75 | | 281.19 | | 24,032 | | 0.01 | | |
| 2021 | | | | | | | | | | | | 2021 |
| | | | | | | | | | | | | |
REPURCHASE OF ADIDAS AG SHARES AND USE OF TREASURY SHARES IN THE CONTEXT OF THE EMPLOYEE STOCK PURCHASE PLAN 2021/ MATCHING
SHARES
Total price
| | | | | | in € | Average | | Amount | | Amount | | |
| --- | --- | --- | --- | ----------- | -------- | --------- | ------ | ---------- | --- | ---------- | --- | --- |
| | | | | (excluding | | purchase | | in the | | in the | | |
| | | | | incidental | | | price | nominal | | nominal | | |
Purchase Number of purchasing per share capital capital Issuance date
date shares costs) in € in € in % to employees
| January 8, | | | | | | | | | | | January 12, | |
| ----------- | --- | ----- | --- | ------------ | --- | ------ | --- | ----- | --- | ----- | ------------ | ----- |
| | | 2,843 | | 840,550.80 | | 295.66 | | 2,843 | | 0.001 | | |
| 2021 | | | | | | | | | | | | 2021 |
| April 9, | | | | | | | | | | | April 13, | |
| | | 3,817 | | 1,073,286.45 | | 281.19 | | 3,817 | | 0.002 | | |
| 2021 | | | | | | | | | | | | 2021 |
| | | | | | | | | | | | | |
On May 12, 2021, the Annual General Meeting of adidas AG approved the proposal of the Executive Board
and Supervisory Board on the appropriation of retained earnings for the 2020 financial year in the amount
of € 3.00 per share. The dividend was paid on May 18, 2021. Based on the number of dividend-entitled
shares at the time of the Annual General Meeting, this results in a dividend distribution of € 585,198,180.
On June 30, 2021 adidas AG held a total of 5,350,126 treasury shares, corresponding to a notional amount
of € 5,350,126 in the nominal capital and consequently 2.67% of the nominal capital. In accordance with
§ 71b German Stock Corporation Act (Aktiengesetz - AktG), the treasury shares held directly or indirectly
do not confer any rights to the company.
22
| | | | | | | | HALF YEAR REPORT 2021 | | | | | | | | |
| ---- | --- | --- | --- | --- | --- | --- | ---------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 1 | | | | | 2 | | | | 3 | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
06 FINANCIAL INSTRUMENTS
CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUES INCLUDING HIERARCHY ACCORDING TO IFRS 13 € IN MILLIONS
| | | | | | Category | | | | June 30, 2021 | | | | | December 31, 2020 | |
| --- | --- | --- | --- | --- | --------- | --- | --- | --- | -------------- | --- | --- | --- | --- | ------------------ | --- |
 Carrying Fair Carrying Fair
 amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Financial assets
Cash and cash equivalents
Cash and cash equivalen ts Amortized 2,383 – – – – 1,762 – – – –
| | | | | | cost | | | | | | | | | | |
| --- | --- | --- | --- | --- | ----- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Fair value
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
through
| Cash equivalents | | | | | | 1,768 | 1,768 | – | 1,768 | – | 2,232 | 2,232 | | – 2,232 | – |
| ---------------- | --- | --- | --- | --- | --- | ----- | ----- | --- | ----- | --- | ----- | ----- | --- | ------- | --- |
profit or
loss
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Fair value
through
| Short-term financial assets | | | | | | | – – | – | – | – | | 0 | 0 | – | 0 – |
| --------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
profit or
loss
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Amortized
| Accounts receivable | | | | | cost | 2,324 | – | – | – | – | 1,952 | | – | – | – – |
| ------------------- | --- | --- | --- | --- | ----- | ----- | --- | --- | --- | --- | ----- | --- | --- | --- | --- |
Other current financ ial assets
| Derivatives used in hedge | | | | | Hedge | | | | | | | | | | |
| -------------------------- | --- | --- | --- | --- | ------ | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
 accounting 119 119 – 119 – 163 163 – 163 –
accounting
| | | | | | Fair value | | | | | | | | | | |
| ------------------------------- | --- | --- | --- | --- | ----------- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
| Derivatives not used in hedge | | | | | through | | | | | | | | | | |
| | | | | | | | 32 32 | – | 32 | – | | 32 | 32 | – | 32 – |
| accounting | | | | | profit or | | | | | | | | | | |
loss
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Fair value
through
| Promissory notes | | | | | | 147 | 147 | – | – | 147 | | 6 | 6 | – | – 6 |
| ---------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
profit or
loss
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Amortized
| Other financial assets | | | | | cost | 511 | – | – | – | – | 511 | | – | – | – – |
| ---------------------- | --- | --- | --- | --- | ----- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Long-term financial asse ts
Fair value
| | | | | | through | | | | | | | | | | |
| --- | --- | --- | --- | --- | --------- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Other equity investments profit or 89 89 – – 89 89 89 – – 89
loss
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Fair value
through
| Other equity investments | | | | | other | | 73 73 | – | – | 73 | | 80 | 80 | – | – 80 |
| ------------------------ | --- | --- | --- | --- | ------ | --- | ----- | --- | --- | --- | --- | --- | --- | --- | ---- |
compre-
hensive
| | | | | | income | | | | | | | | | | |
| --- | --- | --- | --- | --- | ------ | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Fair value
through
| Other investments | | | | | | | 26 25 | – | 251 | – | | 35 | 37 | – | 372 – |
| ----------------- | --- | --- | --- | --- | --- | --- | ----- | --- | --- | --- | --- | --- | --- | --- | ----- |
profit or
loss
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Amortized
| Other investments | | | | | cost | | 87 – | – | – | – | 149 | | – | – | – – |
| ----------------- | --- | --- | --- | --- | ----- | --- | ---- | --- | --- | --- | --- | --- | --- | --- | --- |
Loans Amort iz e d 0 0 – – – 0 0 – – –
| | | | | | c o s t | | | | | | | | | | |
| --- | --- | --- | --- | --- | --------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Other non -current financial assets
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
| Derivatives used in hedge | | | | | Hedge | | | | | | | | | | |
| -------------------------- | --- | --- | --- | --- | ------ | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
accounting accounting 18 18 – 18 – 14 14 – 14 –
| | | | | | Fair value | | | | | | | | | | |
| ------------------------------- | --- | --- | --- | --- | ----------- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
| Derivatives not used in hedge | | | | | through | | | | | | | | | | |
| | | | | | | 108 | 108 | – | 108 | – | | 99 | 99 | – | 99 – |
| accounting | | | | | profit or | | | | | | | | | | |
| | | | | | loss | | | | | | | | | | |
Fair value
through
| Promissory notes | | | | | | | – – | – | – | – | 166 | 166 | | – | – 166 |
| ---------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ----- |
profit or
loss
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
Fair value
through
| Earn-out components | | | | | | | – – | – | – | – | | 12 | 12 | – | – 12 |
| ------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---- |
profit or
loss
| | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | --- | --- | --- | ----- |
23
| | | | | | | HALF YEAR REPORT 2021 | | | | | | | | |
| ---- | --- | --- | --- | --- | --- | ---------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 1 | | | | 2 | | | | 3 | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUES INCLUDING HIERARCHY ACCORDING TO IFRS 13 € IN MILLIONS
| | | | | Category | | | | June 30, 2021 | | | | | December 31, 2020 | |
| --- | --- | --- | --- | --------- | --- | --- | --- | -------------- | --- | --- | --- | --- | ------------------ | --- |
 Carrying Fair Carrying Fair
 amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3
Amortized
| Other financial assets | | | | cost | 117 | – | – | – | – | 114 | – | – | – | – |
| ---------------------- | --- | --- | --- | ---- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Assets classified as held for sale Amort iz e d 1,674 – – – – – – – – –
| | | | | c o s t | | | | | | | | | | |
| --- | --- | --- | --- | --------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Financial assets per level – – – 2,070 309 – – – 2,577 352
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | ----- | --- | ----- | --- |
Financial liabilities
Short-term borrowings
Amortized
Bank borrowings cost 82 – – – – 87 – – – –
 Amort iz e d 600 600 600 – – 599 605 605 – –
| Eurobond | | | | | | | | | | | | | | |
| -------- | --- | --- | --- | ------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | c o s t | | | | | | | | | | |
Accounts pay able Amort iz e d 2,165 – – – – 2,390 – – – –
| | | | | c o s t | | | | | | | | | | |
| --- | --- | --- | --- | ------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Current accrued l iabilities Amort iz e d 801 – – – – 939 – – – –
| | | | | c o s t | | | | | | | | | | |
| --- | --- | --- | --- | --------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
C u r r e nt a c c r u e d li a bilities for Amort iz e d 801 – – – – 743 – – – –
| cu s t o m | e r d i s c o u n | t s | | c o s t | | | | | | | | | | |
| ---------- | ------------------ | --- | --- | --------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Other current financial liabilities
| | | | | | | | | | | | | | | |
| -------------------------- | --- | --- | --- | ------ | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Derivatives used in hedge | | | | Hedge | | | | | | | | | | |
 accounting 157 157 – 157 – 258 258 – 258 –
accounting
| | | | | Fair value | | | | | | | | | | |
| ------------------------------- | --- | --- | --- | ----------- | --- | ------- | --- | --- | ----- | --- | ----- | --- | ----- | --- |
| Derivatives not used in hedge | | | | through | | | | | | | | | | |
| | | | | | | 26 26 | – | 26 | – | 24 | 24 | – | 24 | – |
| accounting | | | | profit or | | | | | | | | | | |
loss
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | ----- | --- | ----- | --- |
Amortized
| Other financial liabilities | | | | cost | 158 | – | – | – | – | 164 | – | – | – | – |
| --------------------------- | --- | --- | --- | ----- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Current lease liabilities n.a. 480 – – – – 563 – – – –
Long-term borrowings
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | ----- | --- | ----- | --- |
Amortized
| Bank borrowings | | | | | | 91 – | – | – | – | 103 | – | – | – | – |
| --------------- | --- | --- | ----- | -------- | --- | ------ | --- | --- | --- | ---- | --- | --- | --- | --- |
| | | | | cost | | | | | | | | | | |
| | | | Amort | iz e d | | | | | | | | | | |
Eurobond 1,889 1,944 1,944 – – 1,888 1,987 1,987 – –
| | | | | c o s t | | | | | | | | | | |
| --- | --- | --- | ----- | -------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | Amort | iz e d | | | | | | | | | | |
Convertibl e bond 493 628 628 – – 491 631 631 – –
| | | | | c o s t | | | | | | | | | | |
| --- | --- | --- | --- | ------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Non-current accr ued liabilities Amort iz e d 1 0 – – – 2 0 – – –
| | | | | c o s t | | | | | | | | | | |
| --- | --- | --- | --- | ------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
O th e r n o n-current financial –
lia b il it ie s
D e r iv a t iv e s used in hedge H e d g e 5 5 – 5 – 26 26 – 26 –
n
| ac c | o u t in g | | acco | un t in g | | | | | | | | | | |
| ------------------------------- | ---------- | --- | ---- | ----------- | --- | ------- | --- | --- | ----- | --- | ----- | --- | ----- | --- |
| | | | | Fair value | | | | | | | | | | |
| Derivatives not used in hedge | | | | through | | | | | | | | | | |
| | | | | | | 34 34 | – | 34 | – | 85 | 85 | – | 85 | – |
| accounting | | | | profit or | | | | | | | | | | |
loss
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | ----- | --- | ----- | --- |
Amortized
| Other financial liabilities | | | | cost | | – – | – | – | – | 4 | – | – | – | – |
| --------------------------- | --- | --- | --- | ----- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Non-current lease liabili ties n.a. 2,206 2,206 – – – 2,159 – – – –
Amortized
Liabilities classified as held for sale cost 667 – – – – – – – – –
Financial liabilities per level – – 3,172 222 – – – 3,2230 393 –
Thereof: aggregated by category
according to IFRS 9
Financial assets at fair value
| through profit or loss | | | | | 2,170 | | | | | 2,670 | | | | |
| ----------------------- | --- | --- | --- | --- | ----- | --- | --- | --- | --- | ----- | --- | --- | --- | --- |
(FVTPL)
Thereof: designated as such
| upon initial recognition | | | | | | – | | | | – | | | | |
| -------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(Fair Value Option – FVO)
| | | | | | | 87 | | | | 87 | | | | |
| --- | --- | --- | --- | --- | --- | --------- | --- | --- | ----- | ----- | ----- | --- | ----- | --- |
Thereof: held for trading (FAHfT)
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | ------- | --- | --- | ----- | --- | ----- | --- | ----- | --- |
24
| | | | HALF YEAR REPORT 2021 | | | | |
| ---- | --- | --- | ---------------------- | --- | --- | --- | --- |
| | 1 | | 2 | | 3 | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUES INCLUDING HIERARCHY ACCORDING TO IFRS 13 € IN MILLIONS
| | | Category | | June 30, 2021 | | | December 31, 2020 |
| --- | --- | ----------- | --- | -------------- | --- | --- | ------------------ |
 Carrying Fair Carrying Fair
 amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3
Financial assets at fair value
| through other | | | 73 | | | 80 | |
| -------------- | --- | --- | --- | --- | --- | --- | --- |
comprehensive income (FVOCI)
Thereof: debt instruments – –
Thereof: equity investments
(without recycling to 73 80
profit and loss)
Financial assets at amortized cost
| | | | 7,096 | | | 4,489 | |
| --- | --- | --- | ----- | --- | --- | ----- | --- |
(AC)
Financial liabilities at fair value
thro ugh profit or loss
| | | | 119 | | | 108 | |
| --- | --- | --- | --- | --- | --- | --- | --- |
(FVTPL)
| | | | – | | | – | |
| --- | --- | --- | ------------ | --- | ------- | -------- | --------- |
Thereof: held for trading (FLHfT)
Financial liabilities at amortized
cost (AC) 7,747 7,409
| | | | | | | | |
| --- | --- | --- | ----------- | --- | ------- | ------- | --------- |
 1 Net gains in the amount of € 1 million and gains in the amount of € 0 million due to currenc y translation differences were recogn ized in equity i n 2021
2 Net gains in the amount of € 0 million and losses in the amount of € 2 million due to currency translation differences were recognized in equity in 2020
Level 1 is based on quoted prices in active markets for identical assets or liabilities.
Level 2 is based on inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 is based on inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
| | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
25
| | | | | | | HALF YEAR REPORT 2021 | | | | | | | | |
| ---- | --- | --- | --- | --- | --- | ---------------------- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 1 | | | | 2 | | | | 3 | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
RECONCILIATION OF FAIR VALUE HIERARCHY LEVEL 3 IN 2020 € IN MILLIONS
| | | | | | | | | | Realized | | Unrealized | | | |
| --- | --- | --- | --- | --- | ------------- | --- | --- | --- | --------- | --- | ----------- | -------------- | ----------- | --- |
| | | | | | Fair value | | | | | | | Currency | Fair value | |
 Jan. 1,2020 Additions Disposals Gains Losses Gains Losses translation Dec. 31, 2020
Investments in other equity instruments held
| | | | | | | 84 | – | – | – | – | 2 | – | – | 87 |
| --- | --- | --- | --- | --- | --- | ---- | --- | --- | --- | --- | --- | --- | --- | --- |
for trading (FAHfT)
I n v e s t m ents in othe r equity instruments 2 – – – – – – – 2
| ( F V T P | L ) | | | | | | | | | | | | | |
| --------- | ----- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
I n v e s tm ents in other equity instruments 78 3 – – – – (2) – 79
| ( F V O C | I) | | | | | | | | | | | | | |
| --------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
Promissory notes (FVTPL) 182 – (1) – (3) 9 – (15) 171
Earn-out components – assets (FVTPL) 45 – (41) – – 12 – (4) 12
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | | | | | | | |
RECONCILIATION OF FAIR VALUE HIERARCHY LEVEL 3 IN 2021 € IN MILLIONS
| | | | | | | | | | Realized | | Unrealized | | | |
| --- | --- | --- | --- | --- | ------------- | --- | --- | --- | --------- | --- | ----------- | -------------- | --- | --- |
| | | | | | Fair value | | | | | | | Currency | | |
Fair value
 Jan. 1,2021 Additions Disposals Gains Losses Gains Losses translation June 30, 2021
Investments in other equity instruments held
| | | | | | | 87 | – | – | – | – | – | – | – | 87 |
| --- | --- | --- | --- | --- | --- | ---- | --- | --- | --- | --- | --- | --- | --- | --- |
for trading (FAHfT)
| I n v e s t | m ents in othe r equity instruments | | | | | | | | | | | | | |
| ----------- | ------------------------------------ | --- | --- | --- | --- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | --- |
| | | | | | | 2 | – | – | – | – | – | – | – | 2 |
( F V T P L )
I n v e s tm ents in other equity instruments
| | I) | | | | | 79 | 1 | (6) | – | – | – | (1) | – | 73 |
| --- | --- | --- | --- | --- | --- | ----- | ---- | ------ | ---- | ---- | ---- | ------ | ---- | --- |
( F V O C
Promissory notes (FVTPL) 171 – (20) – – – (9) 5 147
Earn-out components – assets (FVTPL) 12 – (21) 9 – – – – –
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
The valuation methods used in measuring Level 1, Level 2 and Level 3 fair values remain unchanged and
can be found in the Notes to the 2020 consolidated financial statements.
NET GAINS/(LOSSES) ON FINANCIAL INSTRUMENTS RECOGNIZED IN THE CONSOLIDATED INCOME STATEMENT € IN MILLIONS
| | | | | | | | | | | Period ending | | Year ending | | |
| --- | ------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | ---------------- | --- | ---------------- | ----- | --- |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | June 30, 2021 | | Dec. 31, 2020 | | |
| | Financial assets classified at | | | | | | | | | | | | | |
| | | | | | | | | | | | (3) | | (114) | |
amortized cost (AC)
| | Financial assets at fair value through | | | | | | | | | | | | | |
| --- | --------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | | | | | 1 | 18 | |
profit or loss (FVTPL)
| | Thereof: designated as such upon | | | | | | | | | | | – | – | |
| --- | --------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ----- | ----- | --- |
initial recognition
| | Thereof: classified as held for trading | | | | | | | | | | | – | 2 | |
| --- | --------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---- | ---- | --- |
Equity instruments at fair value through
| | | | | | | | | | | | | – | – | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---- | ---- | --- |
profit or loss (FVTPL)
| | Equity instruments at fair value through | | | | | | | | | | | | | |
| --- | ----------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | | | | | – | – | |
other comprehensive income (FVOCI)
| | Financial liabilities at amortized cost (AC) | | | | | | | | | | | 1 | 39 | |
| --- | -------------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---- | ----- | --- |
Financial liabilities at fair value through
| | | | | | | | | | | | | – | – | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---- | ---- | --- |
profit or loss (FVTPL)
| | Thereof: designated as such upon | | | | | | | | | | | | | |
| --- | --------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | | | | | | – | – | |
initial recognition
| | Thereof: classified as held for trading | | | | | | | | | | | – | – | |
| --- | --------------------------------------- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---- | ------ | --- |
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
26
| | | HALF YEAR REPORT 2021 | | | | | |
| ---- | --- | ---------------------- | --- | --- | --- | --- | --- |
| 1 | | 2 | | 3 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
07 EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net income from continuing operations attributable
to shareholders by the weighted average number of shares outstanding during the year, excluding
ordinary shares purchased by adidas and held as treasury shares. If negative earnings per share are
reported, according to IAS 33.41 no anti-dilutive effect may be taken into account.
EARNINGS PER SHARE
 Continuing operations Discontinued operations Total
 First half year First half year First half year First half year First half year
First half year
| | | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| --- | --- | ------- | ------- | ------- | ------- | ------- | ----- |
Net income / (loss) from
| continuing operations | | 890 | (217) | – | – | – | – |
| ---------------------- | --- | ----- | ------- | --- | --- | --- | --- |
(€ in millions)
| Net income / (loss) attributable | | | | | | | |
| --------------------------------- | --- | --- | --- | --- | --- | --- | --- |
to non-control ling interests
| | | 7 | (27) | – | – | – | – |
| --- | --- | --- | ------ | --- | --- | --- | --- |
(€ in millions)
| | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
Net income / (loss) attributable 883 (190) 72 (74) 955 (264)
to shareholde rs (€ in millions)
Weighted average number of shares 195,066,060 195,266,358 195,066,060 195,266,358 195,066,060 195,266,358
Basic earnings per share (€) 4.52 (0.97) 0.37 (0.38) 4.89 (1.35)
| | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
Net income / (loss) attributable
 to shareholders (€ in millions) 883 (190) 72 (74) 955 (264)
Net income / (loss) used to
| | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
determine diluted earnings 883 (190) 72 (74) 955 (264)
per share (€ in millions)
Weighted average number of shares 195,066,060 195,266,358 195,066,060 195,266,358 195,066,060 195,266,358
Dilutive effect of share-based
| | | 6,163 | – | – | – | 6,163 | – |
| --- | --- | -------- | ---- | ---- | ---- | -------- | --- |
payments
| Weighted average number of | | | | | | | |
| --------------------------- | --- | --- | --- | --- | --- | --- | --- |
shares for diluted earnings
 195,072,223 195,266,358 195,066,060 195,266,358 195,072,223 195,266,358
per share
Diluted earnings per share (€) 4.52 (0.97) 0.37 (0.38) 4.89 (1.35)
27
HALF YEAR REPORT 2021
1 2 3
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
08 SEGMENTAL INFORMATION
adidas operates predominantly in one industry segment – the design, distribution and marketing of athletic
and sports lifestyle products.
As at June 30, 2021, following the company’s internal management reporting by markets and in
accordance with the definition of IFRS 8 ‘Operating Segments,’ five operating segments were identified:
EMEA, North America, Asia-Pacific, Greater China and Latin America.
In order to be able to successfully execute our new strategy ‘Own the Game’ for the period until 2025,
adidas has changed its organizational structure. Since January 1, 2021, adidas manages Greater China as
a separate market and integrated Russia/CIS and Emerging Markets into the European market.
The operating segment Reebok North America which was reported in the internal management reporting
until February 16, 2021, is not monitored anymore due to the reclassification of Reebok business as
discontinued operations on February 16th, 2021. Therefore the segment North America only includes the
business activities of adidas. Comparative segmental information has been retrospectively adjusted. Also
the Reebok business activities in the other operating segments have been removed in the segment
information for 2021 and 2020.
Each market comprises all wholesale, retail and e-commerce business activities relating to the
distribution and sale of products of the adidas brand to retail customers and end consumers.
Other Businesses includes the business activities of the Y-3 label and other subordinated businesses
which are not monitored separately by the chief operating decision maker. Also, certain centralized
corporate functions do not meet the definition of IFRS 8 for an operating segment. This includes, in
particular, functions such as Global Brands and Global Sales (central brand and distribution
management), central treasury, global sourcing as well as other headquarter functions. Assets, liabilities,
income and expenses relating to these corporate functions are presented in the reconciliations.
The chief operating decision-maker for adidas has been defined as the entire Executive Board of
adidas AG.
Net sales represents revenue from contracts with customers. There are no intersegment sales between
the reportable segments. Accounting and valuation policies applied for reporting segmental information
are the same as those used for adidas.
The results of the operating segments are reported in the line item ‘Segmental operating profit.’ This is
defined as gross profit minus other operating expenses plus royalty and commission income and other
operating income attributable to the segment or group of segments, however without considering
headquarter costs and central expenses for marketing.
Segmental assets include accounts receivable as well as inventories. Only these items are reported to the
chief operating decision-maker on a regular basis.
Segmental liabilities only contain accounts payable from operating activities as there are no other liability
items reported regularly to the chief operating decision-maker.
28
HALF YEAR REPORT 2021
| 1 | | 2 | | 3 | | |
| --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
SEGMENTAL INFORMATION € IN MILLIONS
| | | | Net sales | Segmental | Segmental | Segmental |
| --- | --- | --- | ---------- | ---------- | ---------- | ---------- |
 (thir d parties)1 opera tin g profit1 assets2 li abilities2
 2021 2020 2021 2020 2021 2020 2021 2020
EMEA 3,680 2,670 792 308 2,458 2,390 (186) (176)
North America 2,406 1,892 447 45 1,540 1,555 (51) (41)
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
Greater China 2,405 1,757 758 540 1,219 1,240 (230) (266)
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
Asia-Pacific 1,135 939 285 160 600 699 (43) (72)
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
Latin America 645 406 121 (1) 507 532 (91) (55)
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
Reportable segments 10,272 7,665 2,404 1,053 6,325 6,415 (601) (609)
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
Other Businesses 73 68 17 10 52 59 8 (2)
Total 10,345 7,733 2,420 1,063 6,377 6,474 (593) (611)
 1 First half year.
2 At June 30.
OPERATING PROFIT € IN MILLIONS
First half First half
| | | | | | | |
| --- | --- | --- | --- | ------------ | ------------ | --- |
| | | | | year 2021 | year 2020 | |
| Operating profit for reportable segments | | | | | 2,404 | 1,053 |
| ---------------------------------------- | --- | --- | --- | --- | -------- | ------ |
| Operating profit for Other Businesses | | | | | 17 | 10 |
| | | | | | | |
| Segmental operating profit | | | | | 2,420 | 1,063 |
| | | | | | | |
| HQ | | | | | (745) | (586) |
| Central expenditure for marketing | | | | | (373) | (429) |
| --------------------------------- | --- | --- | --- | --- | --------- | --------- |
| Consolidation | | | | | (54) | (263) |
| | | | | | | |
| Operating profit/ (loss) | | | | | 1,248 | (215) |
| | | | | | | |
| Financial income | | | | | 6 | 17 |
| Financial expenses | | | | | (75) | (82) |
| ------------------ | --- | --- | --- | --- | ------ | ---- |
| | | | | | | |
Income/ (loss) before taxes from continuing operations 1,179 (279)
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
NET SALES (THIRD PARTIES) € IN MILLIONS
First half First half
| | | | | | | |
| --- | --- | --- | --- | ------------ | ------------ | --- |
| | | | | year 2021 | year 2020 | |
| Footwear | | | | | 5,766 | 4,495 |
| -------- | --- | --- | --- | --------- | ------- | ------------ |
| Apparel | | | | | 4,037 | 2,812 |
| | | | | | | |
| Hardware | | | | | 542 | 426 |
| | | | | | | |
| Total | | | | 10,345 | | 7,733 |
| 09 | GOODWILL AND TRADEMARKS | | | | | |
| --- | ------------------------ | --- | --- | --- | --- | --- |
Following the company’s internal management reporting by markets, the number of cash-generating units
decreased to a total of six, effective January 1, 2021. In the first quarter 2021, the number of cash-
generating units further decreased to a total of five as the cash-generating unit North America Reebok is
classified as a disposal group and shown in ‘Assets/liabilities classified as held for sale.’
Due to the changes in segmental reporting, the carrying amounts of acquired goodwill have been
reallocated to the new groups of cash-generating units in the first quarter 2021 as follows:
29
HALF YEAR REPORT 2021
| 1 | | | | 2 | | | | | 3 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
ALLOCATION OF GOODWILL
| | | | | | | | Goodwill (€ in millions) | | | | | |
| --- | --- | --- | --- | --- | --- | --- | ------------------------- | --- | --- | --- | --- | --- |
| | | | | | | | | | (Re-) | | (Re-) | |
| --- | --- | --- | --- | --- | --- | ------------ | --- | ----------- | ------ | ----------- | ------ | --- |
| | | | | | | Aggregation | | allocation | | allocation | | |
 Dec. 31, 2020 EMEA Asia-Pacific adidas Golf Jan. 1, 2021
| Europe | | | | | 593 | | (593) | | | | | n.a. |
| ---------------- | --- | --- | --- | --- | ------ | --- | ----- | --- | ------- | --- | ------- | ------ |
| Emerging Markets | | | | | 76 | | (76) | | | | | n.a. |
| | | | | | | | | | | | | |
| EMEA | | | | | n.a. | | 669 | | | | 25 | 694 |
| | | | | | | | | | | | | |
| North America | | | | | n.a. | | | | | | 77 | 77 |
| | | | | | | | | | | | | |
| Greater China | | | | | n.a. | | | | 269 | | 10 | 280 |
| | | | | | | | | | | | | |
| Asia-Pacific | | | | | 361 | | | | (269) | | 66 | 157 |
| | | | | | | | | | | | | |
| adidas Golf | | | | | 178 | | | | | | (178) | n.a. |
| | | | | | | | | | | | | |
| Total | | | | | 1,208 | | - | | - | | - | 1,208 |
| | | | | | | | | | | | | |
Due to the change in the composition of the company’s operating segments and associated cash-
generating units respectively, adidas assessed at January 1, 2021 whether goodwill or Reebok trademark
impairments were required. The underlying value drivers and key assumptions for impairment testing
purposes remained in principle unchanged compared to the impairment test performed for the
consolidated financial statements as at December 31, 2020. In this context, there was no need for goodwill
or Reebok trademark impairment.
On February 16, 2021, the company decided to begin a formal process aimed at divesting Reebok. Reebok
is reported as discontinued operations and classified as a disposal group held for sale as at June 30, 2021,
accordingly. As a result, the goodwill allocated to the group of cash generating units Europe, Middle East
and Africa (EMEA), North America, Greater China and Asia-Pacific (APAC) was split and reallocated
between adidas and Reebok cash-generating units based on relative values (fair values), respectively.
RECONCILIATION OF GOODWILL, NET € IN MILLIONS
| | | | | | | | North | | Greater | | | |
| --- | --- | --- | --- | --- | --- | --- | ------ | --- | -------- | --- | --- | --- |
 EMEA America China Asia-Pacific Total
| January 1, 2021 | | | | | 694 | | 77 | | 280 | | 157 | 1,208 |
| --------------------- | --- | --- | --- | --- | ---- | --- | ----- | --- | ------ | --- | ------ | ------ |
| Reebok Disposal Group | | | | | (23) | | - | | (3) | | (1) | (27) |
Currency translation
| | | | | | 11 | | 0 | | 5 | | 2 | 18 |
| --- | --- | --- | --- | --- | --- | --- | ---- | --- | ---- | --- | ---- | --- |
differences
| June 30, 2021 | | | | | 682 | | 77 | | 282 | | 158 | 1,199 |
| -------------- | --- | --- | --- | --- | ----- | --- | ------ | --- | ------- | --- | ------- | ------- |
In the first quarter 2021, the reallocated goodwill as well as the Reebok trademark in an amount of € 757
million were initially measured according to IAS 36 ‘Impairment of Assets’ and goodwill allocated to
Reebok as well as the Reebok trademark were subsequently transferred to ’Assets/liabilities classified as
held for sale’ due to the concrete plans to divest Reebok.
| | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
30
HALF YEAR REPORT 2021
1 2 3
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
010 EVENTS AFTER THE BALANCE SHEET DATE
The seven-year € 600 million Eurobond, originally due on October 8, 2021, was already repaid by adidas on
July 8, 2021.
With the approval of the Supervisory Board, the Executive Board of adidas AG has decided to launch a new
share buyback program in the second half of 2021. Starting on July 1, 2021, the company plans to buy back
shares worth up to € 550 million until the end of the year. Until the finalization of these interim
consolidated statements on July 26, 2021, adidas AG purchased a total of 226,850 shares for a total price
of € 72,683,346.
Besides this, there were no other major events between the end of the first half of 2021 and the finalization
of these interim consolidated financial statements on July 26, 2021, that might have a material influence
on the assets, liabilities, financial position, and profit or loss of the company.
Herzogenaurach, July 26, 2021
The Executive Board of adidas AG
31
HALF YEAR REPORT 2021
1 2 3
AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)
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 Group management report
includes a fair review of the development and performance of the business and the position of the Group,
together with a description of the material opportunities and risks associated with the expected
development of the Group for the remaining months of the financial year.
Herzogenaurach, July 26, 2021
KASPER RORSTED ROLAND AUSCHEL BRIAN GREVY
CHIEF EXECUTIVE OFFICER GLOBAL SALES GLOBAL BRANDS
HARM OHLMEYER AMANDA RAJKUMAR MARTIN SHANKLAND
CHIEF FINANCIAL OFFICER GLOBAL HUMAN RESOURCES GLOBAL OPERATIONS
32
CONTACT
ADIDAS AG
ADI-DASSLER-STR. 1
91074 HERZOGENAURACH
GERMANY
Tel + 49 (0) 91 32 84 – 0
► ADIDAS-GROUP.COM
adidas ist a member of DIRK
(German Investor Relations Association)
INVESTOR RELATIONS
investor.relations@adidas.com
► ADIDAS–GROUP.DE/INVESTORS
© ADIDAS 2021
33