EANS-Adhoc: adidas Group announces preliminary first quarter 2012 results, commercial irregularities at Reebok India Company and increased 2012 financial outlook

ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.

Preliminary first quarter 2012 results


Herzogenaurach – Management is providing preliminary first quarter
figures which are materially above market expectations. In the first
quarter of 2012, adidas Group revenues increased 14% on a
currency-neutral basis or 17% in euro terms to EUR 3.8 billion.
Growth rates in Greater China and Japan as well as at
TaylorMade-adidas Golf were stronger than originally anticipated.
Despite a 0.7 percentage points decline in the Group’s gross margin
to 47.7%, Group operating margin improved 1.1 percentage points to
10.7%. In absolute terms, Group operating profit grew 30% to EUR 409
million. Due to lower financial expenses and a lower tax rate, the
Group’s net income attributable to shareholders increased 38% to EUR
289 million.

In addition, Management also announces that commercial irregularities
discovered at Reebok India Company, in India, will likely affect the
consolidated financial statements of the adidas Group. The currently
estimated maximum negative impact could be up to a pre-tax amount of
EUR 125 million. Due to the sensitivity of the on-going
investigation, specific details will be disclosed as appropriate in
due course. As these irregularities have been deemed to have occurred
prior to the 2012 financial year, the adidas Group might have to
restate prior-year consolidated financial statements in line with the
requirements of IAS 8. The financial statements of adidas AG will not
be affected by this issue. Management assures its stakeholders that
it has, and will continue to, vigorously pursue a course of action to
protect the Group’s interests, which has already resulted in the
appointment of a new local leadership team in India at the end of

Under this new leadership team, Management is further planning an
accelerated restructuring of its business activities in India,
including significant changes to its commercial business practices.
This could lead to additional one-time charges in the remaining
quarters of 2012 in an estimated amount of up to EUR 70 million.

Taking into account the stronger than expected first quarter
financial performance, the continuing strong momentum of the Group’s
brands in key markets, as well as the impacts from potential one-time
charges for 2012, Management is updating its financial forecasts for
the full year accordingly. Group sales for the full year are now
expected to grow at a rate approaching 10% on a currency-neutral
basis (previously: mid- to high-single-digit). Net income
attributable to shareholders is expected to increase at a rate
between 12% and 17% (previously: between 10% and 15%).

Further inquiry note:
Christian Stoehr
Investor Relations Manager
Tel.: +49 (0) 9132 84-4989
Email: Christian.Stoehr@adidas-group.com

end of announcement euro adhoc

issuer: adidas AG
Adi-Dassler-Str. 1
D-91074 Herzogenaurach
phone: +49 (0)9132 84-0
FAX: +49 (0)9132 84-2241
mail: investor.relations@adidas-Group.com
WWW: http://www.adidas-Group.de
sector: Recreational & Sports goods
indexes: DAX, CDAX, HDAX, Prime All Share
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English

Quelle: http://www.presseportal.de/pm/13664/2243660/eans-adhoc-adidas-group-announces-preliminary-first-quarter-2012-results-commercial-irregularities/api