q131/random_k2/random_2.md

FOR IMMEDIATE RELEASE Herzogenaurach, March 9, 2022
adidas delivers strong results in 2021 and
expects double-digit sales growth in 2022
Major developments FY 2021
• Currency-neutral revenues up 16% driven by growth in all markets
• Excellent top-line momentum in EMEA, North America and Latin America with strong
double-digit increases in each region
• Double-digit growth in DTC reflecting improvements in both online and offline
• Gross margin increases to 50.7% driven by higher full-price sales and better inventory
management
• Operating margin increases 5.3 percentage points to 9.4%
• Net income from continuing operations grows more than € 1 billion to € 1.492 billion
• Executive and Supervisory Boards propose dividend increase of 10% to € 3.30 per share
Outlook for FY 2022
• Currency-neutral sales to increase at a rate between 11% and 13%, already reflecting
up to € 250 million of risk in Russia/CIS business related to the war in Ukraine
• Gross margin to increase to a level of between 51.5% and 52.0%
• Operating margin to increase to a level of between 10.5% and 11.0%
• Net income from continuing operations to grow to between € 1.8 billion and € 1.9 billion
Kasper Rorsted, CEO of adidas: “Unfortunately, we release our 2021 results in unsettling
times. Our thoughts and prayers are with the Ukrainian people, our teams on the ground and
everyone affected by the war. We strongly condemn any form of violence and stand in solidarity
with all those calling for peace. We also provide immediate humanitarian aid to those in need
of support. We will continue to follow the situation closely and take future business decisions
and actions as needed, always prioritizing our employee’s safety and support.”
“In 2021, we delivered a strong set of results despite several external factors weighing on both
demand and supply throughout the year”, Kasper Rorsted continued. “Wherever markets
operated without major disruptions we have been experiencing strong top-line momentum.
This is reflected in double-digit revenue growth in EMEA, North America and Latin America.
While we continued to invest heavily into our brand, our direct-to-consumer business, and our
digital transformation, we improved our bottom-line by more than € 1 billion. Taking it all
together, 2021 was a successful first year within our new strategic cycle. In 2022, we will build
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on this momentum and continue to grow both our top- and bottom-line at double-digit rates
amid heightened uncertainty.”
Financial Performance in 2021
Currency-neutral sales grow 16% despite challenging market environment
In 2021, adidas was able to increase its currency-neutral revenues by 16% despite several
external factors weighing on both demand and supply throughout the year. In total, the
challenging market environment in Greater China, extensive covid-19-related lockdowns in
Asia-Pacific as well as industry-wide supply chain disruptions reduced revenue growth by
more than € 1.5 billion during the year. From a channel perspective, the company’s top-line
increase was characterized by a strong recovery from the material revenue decline in its
physical distribution channels during 2020, when the global coronavirus pandemic had caused
a large number of temporary store closures. As a result, wholesale revenues as well as sales
in adidas’ own-retail stores grew at strong double-digit rates in 2021. E-commerce revenues
increased 4% during the year, on top of the exceptionally high growth in 2020 when e-
commerce revenues had grown by more than 50%. In euro terms, the company’s revenues
increased 15% in 2021 to € 21.234 billion (2020: € 18.435 billion).
Revenue improves in all market segments
While sales increased in all market segments in 2021, the top-line development in the regions
differed significantly depending on the impact the various demand and supply challenges had
on the specific region. While all markets were negatively impacted by industry-wide supply
chain challenges, the company recorded particularly strong developments in markets that
operated without major covid-19-related disruptions. Accordingly, currency-neutral sales in
EMEA, North America, and Latin America increased by 24%, 17%, and 47%, respectively. At
the same time, the challenging market environment in Greater China (+3%) and the extensive
covid-19-related restrictions in Asia-Pacific (+8%) weighed on adidas’ results in these
markets.
Gross margin at 50.7% driven by higher full-prices sales and better inventory management
The company’s gross margin increased 0.7 percentage points to 50.7% in 2021 (2020: 50.0%).
While negative currency developments, higher supply chain costs and a less favorable channel
and market mix weighed on the development in 2021, higher full-price sales and lower
inventory allowances as well as the non-recurrence of last year’s purchase order cancellation
costs were able to overcompensate the negative effects.
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Operating margin improves by 5.3 percentage points
Other operating expenses increased 4% to € 8.892 billion in 2021 (2020: € 8.580 billion). As a
percentage of sales, other operating expenses were down 4.7 percentage points to 41.9%
(2020: 46.5%). Marketing and point-of-sale expenses increased 7% to € 2.547 billion
(2020: € 2.373 billion) due to increased investments into the brand supporting the introduction
of new products and to drive consumer experience across both digital and physical platforms.
As a percentage of sales, marketing and point-of-sale expenses decreased 0.9 percentage
points to 12.0% (2020: 12.9%). Operating overhead expenses increased 2% to € 6.345 billion
(2020: € 6.207 billion) including more than € 220 million stranded costs related to the
divestiture of the Reebok business. As a percentage of sales, operating overhead expenses
decreased 3.8 percentage points to 29.9% (2020: 33.7%). As a result of the strong top-line
increase in combination with the improved gross margin and lower operating expenses as a
percentage of sales, the company’s operating profit increased 166% to € 1.986 billion in 2021
(2020: € 746 million). Consequently, the operating margin increased 5.3 percentage points to
9.4% compared to the prior year level of 4.0%.
Net financial result decreases
Financial income decreased 32% to € 19 million in 2021 (2020: € 29 million), while financial
expenses were down 22% to € 153 million (2020: € 196 million). As a result, the company
recorded a negative net financial result of € 133 million (2020: negative € 167 million). The
company’s tax rate decreased 0.8 percentage points to 19.4% in 2021 (2020: 20.2%).
Net income from continuing operations increases by more than € 1 billion
Net income from continuing operations increased 223% to € 1.492 billion in 2021 (2020:
€ 461 million). Both basic and diluted EPS from continuing operations also increased 223% to
€ 7.47 (2020: € 2.31).
Average operating working capital as percentage of sales decreases 5.3 percentage points
At the end of December 2021, inventories were down 9% to € 4.009 billion (2020: € 4.397
billion), or 12% lower on a currency-neutral basis. This development mainly reflects the
divestiture of the Reebok business. The strong sell-through of the company’s products,
successful inventory management as well as the impact from industry-wide supply chain
challenges also contributed to the decline. Accounts receivable increased 11% to € 2.175
billion at the end of December 2021 (2020: € 1.952 billion) reflecting the company’s strong
top-line growth. On a currency-neutral basis, accounts receivables were up 6%. Accounts
payable were down 4% to € 2.294 billion at the end of December 2021 versus € 2.390 billion
in 2020. This development reflects the normalization of payment terms as well as the
divestiture of the Reebok business. On a currency-neutral basis, accounts payable decreased
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6%. Average operating working capital as a percentage of sales decreased 5.3 percentage
points to 20.0% for the full year (2020: 25.3%).
Accelerated investments into DTC and digital
The company’s capital expenditure increased 51% in 2021 to € 667 million (2020: € 442
million). Investments in new or remodeled own-retail stores, the company’s e-commerce
business as well as the broader IT infrastructure represented once again the majority of the
expenditure.
Executive and Supervisory Boards propose dividend payment of € 3.30 per share
As a result of the strong operational and financial performance in 2021, the company’s
financial position as well as Management’s confidence in its long-term growth aspirations,
the adidas Executive and Supervisory Boards will recommend paying a dividend of € 3.30 per
dividend-entitled share to shareholders at the Annual General Meeting on May 12, 2022. This
represents an increase of 10% compared to the prior year dividend (2021: € 3.00).
Financial Performance in Q4 2021
Sales in the fourth quarter impacted by supply and demand challenges
Currency-neutral revenues in the fourth quarter declined 3%. Significant supply shortages as
a result of the lockdowns in Vietnam last year, the challenging market environment in Greater
China as well as covid-19-related lockdowns in Asia-Pacific reduced revenue growth by more
than € 400 million in Q4. In light of the supply shortages the company continued to prioritize
its own DTC channel. As a result, DTC revenues were stable versus the prior year, reflecting
a 14% increase compared to the 2019 level. While adidas e-commerce revenues experienced
a strong increase in full-price sales, revenues in the company’s own digital channel declined
by 2% during the quarter reflecting the exceptionally high growth in the prior year period.
Compared to the 2019 level, e-commerce revenues grew 39% in the fourth quarter. In euro
terms, adidas revenues were flat versus the prior year at € 5.137 billion (2020: € 5.142 billion).
Revenues in EMEA up strong double-digits in Q4
From a regional perspective, revenues in North America were most impacted by the supply
shortages in the fourth quarter with almost half of the total negative impact recorded in this
particular market. As a result, currency-neutral revenues in North America declined 4%
during the quarter. Nevertheless, revenues in the company’s direct-to-consumer business
continued to increase in the market, reflecting the company’s DTC-led strategy. While EMEA
was also significantly impacted by the supply shortages, revenues still grew 15%, driven by
double-digit growth in both DTC and wholesale. Fourth quarter revenues in Latin America
improved 9%, reflecting strong double-digit growth versus the 2019 level. Revenues in Greater
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China (-24%) and APAC (-6%) declined due to the supply shortages, covid-19-related
restrictions and – in the case of China – the challenging market environment.
Gross margin slightly down 0.1 percentage points
In the fourth quarter of 2021, the gross margin declined slightly by 0.1 percentage points to
49.0% (2020: 49.1%). Significantly higher supply chain costs – the company recorded
additional freight costs of more than € 100 million this quarter alone – as well as continued
headwinds from unfavorable currency developments represented a material drag on gross
margin in Q4. This impact was almost completely offset by significantly higher full price sales.
Operating margin below prior year level
Other operating expenses were up 7% to € 2.501 billion during the fourth quarter (2020:
€ 2.331 billion). As a percentage of sales, other operating expenses increased 3.3 percentage
points to 48.7% (2020: 45.3%). Marketing and point-of-sale expenses increased 8% to
€ 715 million (2020: € 662 million) and as a percentage of sales were up to 13.9% (2020:
12.9%), reflecting higher investments to support the introduction of new products such as the
UltraBoost22, NMD S1 and the latest IVY PARK x adidas collection, as well as to elevate the
consumer experience across all touchpoints. Operating overhead expenses increased 7% to
€ 1.786 billion (2020: € 1.670 billion) and included stranded costs related to the divestiture of
the Reebok business in an amount of around € 60 million. As a percentage of sales, operating
overhead expenses increased to 34.8% (2020: 32.5%). Operating profit amounted to
€ 66 million (2020: € 225 million), resulting in an operating margin of 1.3% (2020: 4.4%). Net
income from continuing operations reached € 123 million in the quarter (2020: € 143 million),
supported by a positive tax benefit related to the divestiture of the Reebok business. Both basic
and diluted EPS from continuing operations were € 0.58 in Q4 (2020: € 0.70).
Outlook for 2022
Currency-neutral sales to increase between 11% and 13%
After the recovery from the coronavirus pandemic in 2021, adidas expects double-digit top-
line growth to continue in 2022 amid heightened uncertainty. Driven by the execution of the
company’s strategy ‘Own the Game’ as well as its strong product pipeline currency-neutral
revenues are projected to increase at a rate between 11% and 13%. This growth assumption
already includes a risk of up to € 250 million in the company’s Russia/CIS business – about
50% of adidas’ total revenues in the region – due to the war in Ukraine and reflects the
suspension of adidas’ retail and e-commerce operations in Russia. This amount represents
around 1 percentage point of growth for the total company and explains the difference to the
initial outlook as provided in the Management Report at the time of the preparation of the
company’s annual report.
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Currency-neutral revenues to increase in all markets
From a regional perspective, currency-neutral revenues are expected to increase in all
markets. While currency-neutral sales in North America and Latin America are projected to
grow at a mid- to high-teens rate, currency-neutral revenues are expected to grow at a rate
in the mid-teens in EMEA and Asia-Pacific. Greater China is expected to record a sales
increase in the mid-single digits as the company continues to make progress with its action
plan aimed at stabilizing the business and re-igniting growth.
Gross margin expected to expand to a level of between 51.5% and 52.0%
adidas’ gross margin is expected to continue to increase and reach a level of between 51.5%
and 52.0%. A positive channel mix effect, significant price increases as well as the positive
impact from favorable currency developments will drive the gross margin improvement and
are expected to outweigh significantly higher supply chain costs.
Operating margin to increase to a level of between 10.5% and 11.0%
The company’s operating margin is expected to increase significantly to a level of between
10.5% and 11.0%. In addition to the higher gross margin, lower operating expenses in
percentage of sales will benefit the company’s operating margin in 2022. This development
will be supported by the non-recurrence of around 70% of the Reebok-related stranded costs,
which accounted to more than € 220 million in 2021. Driven by the strong top-line growth in
combination with the margin improvements net income from continuing operations is
projected to increase to a level of between € 1.8 billion and € 1.9 billion in 2022.
***
Contacts:
Media Relations Investor Relations
corporate.press@adidas.com investor.relations@adidas.com
Tel.: +49 (0) 9132 84-2352 Tel.: +49 (0) 9132 84-2920
For more information, please visit adidas-group.com or report.adidas-group.com.
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|     |                  |                  |     |     |
| --- | ---------------- | ---------------- | --- | --- |
|     | Quarter ending   | Quarter ending   |     |     |
€ in millions    December 31, 2021    December 31, 2020    Change
| Net sales                             |     | 5,137       | 5,142    | (0.1%)   |
| ------------------------------------- | --- | ----------- | -------- | -------- |
| Cost of sales                         |     | 2,618       | 2,615    | 0.1%     |
| Gross profit                          |     | 2,519       | 2,526    | (0.3%)   |
| (% of net sales)                      |     | 49.0%       | 49.1%    | (0.1pp)  |
| Royalty and commission income         |     | 33          | 18       | 86.4%    |
| Other operating income                |     | 15          | 13       | 16.3%    |
| Other operating expenses              |     | 2,501       | 2,331    | 7.3%     |
| (% of net sales)                      |     | 48.7%       | 45.3%    | 3.3pp    |
| Marketing and point-of-sale expenses  |     | 715         | 662      | 8.2%     |
| (% of net sales)                      |     | 13.9%       | 12.9%    | 1.1pp    |
| Operating overhead expenses2          |     | 1,786       | 1,670    | 6.9%     |
| (% of net sales)                      |     | 34.8%       | 32.5%    | 2.3pp    |
| Operating profit                      |     | 66          | 225      | (70.9%)  |
| (% of net sales)                      |     | 1.3%        | 4.4%     | (3.1pp)  |
| Financial income                      |     | 17          | 11       | 59.1%    |
| Financial expenses                    |     | 39          | 76       | (49.4%)  |
| Income before taxes                   |     | 44          | 160      | (72.2%)  |
| (% of net sales)                      |     | 0.9%        | 3.1%     | (2.2pp)  |
| Income taxes                          |     | (79)        | 17       | n.a.     |
| (% of income before taxes)            |     | (177.6%)    | 10.5%    | n.a.     |
Net income from continuing operations    123    143    (13.8%)
| (% of net sales)  |     | 2.4%    | 2.8%    | (0.4pp)  |
| ----------------- | --- | ------- | ------- | -------- |
Gain from discontinued operations, net of tax    89    14    534.2%
| Net income        |     | 213     | 157     | 35.3%  |
| ----------------- | --- | ------- | ------- | ------ |
| (% of net sales)  |     | 4.1%    | 3.1%    | 1.1pp  |
Net income attributable to shareholders    202    151    33.6%
| (% of net sales)  |     | 3.9%    | 2.9%    | 1.0pp  |
| ----------------- | --- | ------- | ------- | ------ |
Net income attributable to non-controlling interests    11    6    74.9%
|     |     |     |     |     |
| --- | --- | --- | --- | --- |
Basic earnings per share from continuing operations (in €)    0.58    0.70    (16.8%)
Diluted earnings per share from continuing operations (in €)    0.58    0.70    (16.8%)
|     |     |     |     |     |
| --- | --- | --- | --- | --- |
Basic earnings per share from continuing and discontinued operations (in €)    1.05    0.77    35.6 %
Diluted earnings per share from continuing and discontinued operations (in €)    1.05    0.77    35.6 %
|     |     |     |     |     |
| --- | --- | --- | --- | --- |
1 2021 and 2020 figures reflect continuing operations as a result of the reclassification of the Reebok business to discontinued operations.
2 Aggregated distribution and selling expenses, general and administration expenses, sundry expenses and impairment losses (net) on accounts receivable and contract assets.
Rounding differences may arise.

7

|     |                 |     |                 |     |     |     |         |
| --- | --------------- | --- | --------------- | --- | --- | --- | ------- |
|     | Quarter ending  |     | Quarter ending  |     |     |     | Change  |
€ in millions    December 31, 2021    December 31, 2020    Change    (currency-neutral)
| EMEA              |     | 1,832    |     | 1,559    | 17.5%    |     | 15.2%    |
| ----------------- | --- | -------- | --- | -------- | -------- | --- | -------- |
| North America     |     | 1,303    |     | 1,317    | (1.1%)   |     | (3.7%)   |
| Greater China     |     | 1,037    |     | 1,287    | (19.4%)  |     | (24.3%)  |
| Asia-Pacific      |     | 541      |     | 587      | (7.8%)   |     | (6.0%)   |
| Latin America     |     | 397      |     | 365      | 8.8%     |     | 8.7%     |
| Other Businesses  |     | 28       |     | 27       | 3.6%     |     | 4.1%     |
|                   |     |          |     |          |          |     |          |
1 2021 and 2020 figures reflect continuing operations as a result of the reclassification of the Reebok business to discontinued operations.
Rounding differences may arise.

8

|     |     |              |              |     |
| --- | --- | ------------ | ------------ | --- |
|     |     | Year ending  | Year ending  |     |
€ in millions    December 31, 2021    December 31, 2020    Change
| Net sales                      |     | 21,234    | 18,435    | 15.2%    |
| ------------------------------ | --- | --------- | --------- | -------- |
| Cost of sales                  |     | 10,469    | 9,213     | 13.6%    |
| Gross profit                   |     | 10,765    | 9,222     | 16.7%    |
| (% of net sales)               |     | 50.7%     | 50.0%     | 0.7pp    |
| Royalty and commission income  |     | 86        | 61        | 40.9%    |
| Other operating income         |     | 28        | 42        | (34.8%)  |
| Other operating expenses       |     | 8,892     | 8,580     | 3.6%     |
| (% of net sales)               |     | 41.9%     | 46.5%     | (4.7pp)  |
Marketing and point-of-sale expenses    2,547    2,373    7.3%
| (% of net sales)              |     | 12.0%    | 12.9%    | (0.9pp)  |
| ----------------------------- | --- | -------- | -------- | -------- |
| Operating overhead expenses2  |     | 6,345    | 6,207    | 2.2%     |
| (% of net sales)              |     | 29.9%    | 33.7%    | (3.8pp)  |
| Operating profit              |     | 1,986    | 746      | 166.3%   |
| (% of net sales)              |     | 9.4%     | 4.0%     | 5.3pp    |
| Financial income              |     | 19       | 29       | (32.1%)  |
| Financial expenses            |     | 153      | 196      | (22.0%)  |
| Income before taxes           |     | 1,852    | 578      | 220.2%   |
| (% of net sales)              |     | 8.7%     | 3.1%     | 5.6pp    |
| Income taxes                  |     | 360      | 117      | 207.9%   |
| (% of income before taxes)    |     | 19.4%    | 20.2%    | (0.8pp)  |
Net income from continuing operations    1,492    461    223.4%
| (% of net sales)  |     | 7.0%    | 2.5%    | 4.5pp  |
| ----------------- | --- | ------- | ------- | ------ |
Gain/(loss) from discontinued operations, net of tax    666    –19    n.a
| Net income        |     | 2,158    | 443     | 387.4%  |
| ----------------- | --- | -------- | ------- | ------- |
| (% of net sales)  |     | 10.2%    | 2.4%    | 7.8pp   |
Net income attributable to shareholders    2,116    432    389.6%
| (% of net sales)  |     | 10.0%    | 2.3%    | 7.6pp  |
| ----------------- | --- | -------- | ------- | ------ |
Net income attributable to non-controlling interests    42    11    296.5%
|     |     |     |     |     |
| --- | --- | --- | --- | --- |
Basic earnings per share from continuing operations (in €)    7.47    2.31    223.3%
Diluted earnings per share from continuing operations (in €)    7.47    2.31    223.3%
|     |     |     |     |     |
| --- | --- | --- | --- | --- |
Basic earnings per share from continuing and discontinued operations (in €)    10.90    2.21    392.1%
Diluted earnings per share from continuing and discontinued operations (in €)    10.90    2.21    392.1%
|     |     |     |     |     |
| --- | --- | --- | --- | --- |
1 2021 and 2020 figures reflect continuing operations as a result of the reclassification of the Reebok business to discontinued operations.
2 Aggregated distribution and selling expenses, general and administration expenses, sundry expenses and impairment losses (net) on accounts receivable and contract assets.
Rounding differences may arise.

9

|     |     |              |              |     |     |         |
| --- | --- | ------------ | ------------ | --- | --- | ------- |
|     |     | Year ending  | Year ending  |     |     | Change  |
€ in millions    December 31, 2021    December 31, 2020    Change    (currency-neutral)
| EMEA              |     | 7,760    | 6,308  |        | 23.0%     | 24.0 %  |
| ----------------- | --- | -------- | ------ | ------ | --------- | ------- |
| North America     |     | 5,105    | 4,519  |        | 13.0%     | 16.6 %  |
| Greater China     |     | 4,597    | 4,342  |        | 5.9%      | 3.0 %   |
| Asia-Pacific      |     | 2,180    | 2,083  |        | 4.7%      | 7.7 %   |
| Latin America     |     | 1,446    | 1,035  |        | 39.8%     | 47.2 %  |
| Other Businesses  |     | 145      |        | 149    | (2.6%)    | (2.0%)  |
|                   |     |          |        |        |           |         |
1 2021 and 2020 figures reflect continuing operations as a result of the reclassification of the Reebok business to discontinued operations.
Rounding differences may arise.

10

|     |     |     |     |     |
| --- | --- | --- | --- | --- |
€ in millions    December 31, 2021    December 31, 2020    Change in %
| Cash and cash equivalents       |     | 3,828    | 3,994    | (4.1)   |
| ------------------------------- | --- | -------- | -------- | ------- |
| Accounts receivable             |     | 2,175    | 1,952    | 11.4    |
| Other current financial assets  |     | 745      | 702      | 6.1     |
| Inventories                     |     | 4,009    | 4,397    | (8.8)   |
| Income tax receivables          |     | 91       | 109      | (16.9)  |
| Other current assets            |     | 1,062    | 999      | 6.3     |
Assets classified as held for sale    2,033    0    802,610.8
| Total current assets                     |     | 13,944    | 12,154    | 14.7    |
| ---------------------------------------- | --- | --------- | --------- | ------- |
| Property, plant and equipment            |     | 2,256     | 2,157     | 4.6     |
| Right-of-use assets                      |     | 2,569     | 2,430     | 5.7     |
| Goodwill                                 |     | 1,228     | 1,208     | 1.7     |
| Trademarks                               |     | 16        | 750       | (97.8)  |
| Other intangible assets                  |     | 336       | 252       | 33.6    |
| Long-term financial assets               |     | 290       | 353       | (17.8)  |
| Other non-current financial assets       |     | 160       | 414       | (61.2)  |
| Deferred tax assets                      |     | 1,263     | 1,233     | 2.5     |
| Other non-current assets                 |     | 74        | 103       | (28.4)  |
| Total non-current assets                 |     | 8,193     | 8,899     | (7.9)   |
| Total assets                             |     | 22,137    | 21,053    | 5.1     |
| Short-term borrowings                    |     | 29        | 686       | (95.8)  |
| Accounts payable                         |     | 2,294     | 2,390     | (4.0)   |
| Current lease liabilities                |     | 573       | 563       | 1.8     |
| Other current financial liabilities      |     | 363       | 446       | (18.6)  |
| Income taxes                             |     | 536       | 562       | (4.7)   |
| Other current provisions                 |     | 1,458     | 1,609     | (9.4)   |
| Current accrued liabilities              |     | 2,684     | 2,172     | 23.6    |
| Other current liabilities                |     | 434       | 398       | 9.0     |
| Liabilities classified as held for sale  |     | 594       | –         | n.a.    |
| Total current liabilities                |     | 8,965     | 8,827     | 1.6     |
| Long-term borrowings                     |     | 2,466     | 2,482     | (0.7)   |
| Non-current lease liabilities            |     | 2,263     | 2,159     | 4.8     |
Other non-current financial liabilities    51    115    (55.4)
| Pensions and similar obligations  |     | 267      | 284      | (6.1)   |
| --------------------------------- | --- | -------- | -------- | ------- |
| Deferred tax liabilities          |     | 122      | 241      | (49.5)  |
| Other non-current provisions      |     | 149      | 229      | (34.8)  |
| Non-current accrued liabilities   |     | 8        | 8        | (3.2)   |
| Other non-current liabilities     |     | 9        | 17       | (45.8)  |
| Total non-current liabilities     |     | 5,334    | 5,535    | (3.6)   |
| Share capital                     |     | 192      | 195      | (1.8)   |
Reserves (thereof at Dec. 31st, 2021 € 128 million relating to the Reebok disposal
|     |     | 69    | (474)    | n.a.  |
| --- | --- | ----- | -------- | ----- |
group)
| Retained earnings             |     | 7,259     | 6,733     | 7.8   |
| ----------------------------- | --- | --------- | --------- | ----- |
| Shareholders' equity          |     | 7,519     | 6,454     | 16.5  |
| Non-controlling interests     |     | 318       | 237       | 34.0  |
| Total equity                  |     | 7,837     | 6,691     | 17.1  |
| Total liabilities and equity  |     | 22,137    | 21,053    | 5.1   |

11

| Additional balance sheet information  |          |          |          |           |
| ------------------------------------- | -------- | -------- | -------- | --------- |
| Operating working capital             |          | 3,890    | 3,960    | (1.8)     |
| Working capital                       |          | 4,978    | 3,328    | 49.6      |
| Adjusted net borrowings2              |          | 2,963    | 3,148    | (5.9)     |
| Financial leverage3                   |   39.4%  |   48.8%  |          | (9.4 pp)  |
|                                       |          |          |          |           |
|                                       |          |          |          |           |
1 2021 figures reflect the reclassification of the Reebok business to assets or liabilities held for sale.
2 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.
3 Based on shareholders' equity.
Rounding differences may arise.

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