Adidas - Financial Statements With Notes

ANNUAL REPORT 2022
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TO OUR SHAREHOLDERS GROUP MANAGEMENT REPORT – GROUP MANAGEMENT REPORT – CONSOLIDATED FINANCIAL ADDITIONAL INFORMATION
OUR COMPANY FINANCIAL REVIEW STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL

POSITION
ADIDAS AG CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) € IN MILLIONS
Note Dec. 31, 2022 Dec. 31, 2021 Change in %
Assets
Cash and cash equivalents 05 798 3,828 (79)
Accounts receivable 06 2,529 2,175 16
Other current financial assets 07 1,014 745 36
Inventories 08 5,973 4,009 49
Income tax receivables 35 102 91 12
Other current assets 09 1,316 1,062 24
Assets classified as held for sale 03 – 2,033 n.a.
Total current assets 11,732 13,944 (16)
Property, plant, and equipment 10 2,279 2,256 1

Right-of-use assets 11 2,665 2,569 4
Goodwill 12 1,260 1,228 3
Other intangible assets 13 429 352 22
Long-term financial assets 14 301 290 4
Other non-current financial assets 15 336 160 110
Deferred tax assets 35 1,216 1,263 (4)
Other non-current assets 16 76 74 4
Total non-current assets 8,563 8,193 5
Total assets 20,296 22,137 (8)
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ADIDAS AG CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) € IN MILLIONS
Note Dec. 31, 2022 Dec. 31, 2021 Change in %
Liabilities and equity

Short-term borrowings 17 527 29 1,722
Accounts payable 2,908 2,294 27
Current lease liabilities 20 643 573 12
Other current financial liabilities 18 424 363 17
Income taxes 35 302 536 (44)
Other current provisions 19 1,589 1,458 9
Current accrued liabilities 21 2,412 2,684 (10)
Other current liabilities 22 452 434 4
Liabilities classified as held for sale 03 – 594 n.a.
Total current liabilities 9,257 8,965 3
Long-term borrowings 17 2,946 2,466 19

Non-current lease liabilities 20 2,343 2,263 4
Other non-current financial liabilities 23 44 51 (14)
Pensions and similar obligations 24 118 267 (56)
Deferred tax liabilities 35 135 122 11
Other non-current provisions 19 88 149 (41)
Non-current accrued liabilities 21 7 8 (10)
Other non-current liabilities 25 6 9 (29)
Total non-current liabilities 5,688 5,334 7
Share capital 179 192 (7)

Reserves 466 468 (0)
Retained earnings 4,347 6,860 (37)
Shareholders’ equity 26 4,991 7,519 (34)
Non-controlling interests 28 360 318 13
Total equity 5,351 7,837 (32)
Total liabilities and equity 20,296 22,137 (8)
The accompanying Notes are an integral part of these consolidated financial statements.
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CONSOLIDATED INCOME STATEMENT

ADIDAS AG CONSOLIDATED INCOME STATEMENT (IFRS) € IN MILLIONS
Year ending Year ending

Note Dec. 31, 2022 Dec. 31, 2021 Change
Net sales 37 22,511 21,234 6.0%
Cost of sales 11,867 10,469 13.4%
Gross profit 10,644 10,765 (1.1%)
(% of net sales) 47.3% 50.7% (3.4pp)
Royalty and commission income 112 86 30.6%
Other operating income 30 173 28 529.5%
Other operating expenses 10, 13, 31, 32 10,260 8,892 15.4%
(% of net sales) 45.6% 41.9% 3.7pp
Marketing and point-of-sale expenses 2,763 2,547 8.5%
(% of net sales) 12.3% 12.0% 0.3pp
Distribution and selling expenses 5,601 4,782 17.1%
(% of net sales) 24.9% 22.5% 2.4pp
General and administration expenses 1,651 1,481 11.4%
(% of net sales) 7.3% 7.0% 0.4pp
Sundry expenses 182 76 139.5%
(% of net sales) 0.8% 0.4% 0.5pp
Impairment losses (net) on accounts
63 6 1,027.4%
receivable and contract assets
Operating profit 669 1,986 (66.3%)
(% of net sales) 3.0% 9.4% (6.4pp)
Financial income 33 39 19 101.7%
Financial expenses 33 320 153 109.7%
Income before taxes 388 1,852 (79.1%)
(% of net sales) 1.7% 8.7% (7.0pp)
Income taxes 35 134 360 (62.8%)
(% of income before taxes) 34.5% 19.4% 15.0pp
Net income from continuing operations 254 1,492 (83.0%)
(% of net sales) 1.1% 7.0% (5.9pp)
Gain from discontinued operations, net of tax 03 384 666 (42.4%)
Net income 638 2,158 (70.4%)
(% of net sales) 2.8% 10.2% (7.3pp)
Net income attributable to shareholders 612 2,116 (71.1%)
(% of net sales) 2.7% 10.0% (7.2pp)
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ADIDAS AG CONSOLIDATED INCOME STATEMENT (IFRS) € IN MILLIONS

Note Dec. 31, 2022 Dec. 31, 2021 Change
Net income attributable to non-controlling
26 42 (37.9%)
interests
Basic earnings per share from continuing
36 1.25 7.47 (83.3%)
operations (in €)
Diluted earnings per share from continuing
36 1.25 7.47 (83.3%)
operations (in €)
Basic earnings per share from continuing and
36 3.34 10.90 (69.4%)
discontinued operations (in €)
Diluted earnings per share from continuing
36 3.34 10.90 (69.4%)
and discontinued operations (in €)
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CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME
ADIDAS AG CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) € IN MILLIONS

Note Dec. 31, 2022 Dec. 31, 2021
Net income after taxes 638 2,158
Items of other comprehensive income that will not be
reclassified subsequently to profit or loss
Remeasurements of defined benefit plans (IAS 19), net of tax1 24 131 50
Net gain on other equity investments (IFRS 9), net of tax 29 0 1
Subtotal of items of other comprehensive income that will not
131 52
be reclassified subsequently to profit or loss
Items of other comprehensive income that will be reclassified
to profit or loss when specific conditions are met
Net (loss)/gain on cash flow hedges and net foreign investment
29 (25) 186
hedges, net of tax
Net loss on cost of hedging reserve – options, net of tax 29 (1) (6)
Net (loss)/gain on cost of hedging reserve – forward contracts,
29 (36) 11
net of tax
Reclassification of foreign currency translation differences due
04 (228) –
to disposal of foreign operations
Currency translation differences 177 330
Subtotal of items of other comprehensive income that will be
(113) 521
reclassified to profit or loss when specific conditions are met
Other comprehensive income 18 573
Total comprehensive income 656 2,731
Attributable to shareholders of adidas AG 610 2,650

Attributable to non-controlling interests 47 81
1 Includes actuarial gains or losses relating to defined benefit obligations, return on plan assets (excluding interest income) and the asset ceiling effect.
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CONSOLIDATED STATEMENT OF CHANGES IN

EQUITY
ADIDAS AG CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS) € IN MILLIONS
Cumu-
lative Cost of
cur- hedging
rency Cost of reserve
trans- hedging –
lation reserve forward Share- Non-con-
Share Capital differ- Hedging – con- Other Retained holders’ trolling Total
Note capital reserve ences reserve options tracts reserves earnings equity interests equity
Balance at 195 887 (850) (250) (3) (23) (235) 6,733 6,454 237 6,691
December 31, 2020
Reclassification1 26 – 399 – – – – – (399) – – –
Balance at
195 1,286 (850) (250) (3) (23) (235) 6,334 6,454 237 6,691
January 1, 2021
Other
comprehensive – – 308 186 (6) 11 35 – 534 39 573
income
Net income – – – – – – – 2,116 2,116 42 2,158
Total
comprehensive – – 308 186 (6) 11 35 2,116 2,650 81 2,731
income
Repurchase of
26 (3) – – – – – – (1,001) (1,004) – (1,004)
adidas AG shares
Repurchase of
adidas AG shares
due to equity- 26 (0) – – – – – – (32) (32) – (32)
settled share-based
payment
Reissuance of
treasury shares due
to equity-settled 26 0 – – – – – – 35 35 – 35
share-based
payment
Dividend payment – – – – – – – (585) (585) – (585)
Equity-settled
share-based 27 – – – – – – – 1 1 – 1
payment
Cancellation of
– 8 – – – – – (8) – – –
treasury shares
Balance at
December 31, 2021/ 192 1,294 (542) (64) (8) (12) (200) 6,860 7,519 318 7,837
January 1, 2022
Other
comprehensive – – (70) (26) (1) (36) 131 – (2) 21 18
income
Net income – – – – – – – 612 612 26 638
Total
comprehensive – – (70) (26) (1) (36) 131 612 610 47 656
income
Repurchase of
26 (13) – – – – – – (2,487) (2,500) – (2,500)
adidas AG shares
Repurchase of
adidas AG shares
due to equity- 26 (0) – – – – – – (22) (22) – (22)
settled share-based
payment
Reissuance of
treasury shares due
to equity-settled 26 0 – – – – – – 41 41 – 41
share-based
payment
Dividend payment – – – – – – – (610) (610) (22) (632)
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ADIDAS AG CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS) € IN MILLIONS

Cumu-
lative Cost of
cur- hedging
rency Cost of reserve
trans- hedging –
lation reserve forward Share- Non-con-
Share Capital differ- Hedging – con- Other Retained holders’ trolling Total
Note capital reserve ences reserve options tracts reserves earnings equity interests equity
Equity-settled
share-based 27 – 32 – – – – – (35) (4) – (4)
payment
Acquisition of
shares from non-
controlling interests
– – 4 – – – (48) – (44) 17 (27)
shareholders in
accordance with
IAS 32
Cancellation of
26 – 12 – – – – – (12) – – –
treasury shares
Balance at
179 1,338 (608) (90) (9) (48) (116) 4,347 4,991 360 5,351
December 31, 2022
1 Disclosure adjustment from previous years.

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CONSOLIDATED STATEMENT OF CASH FLOWS

ADIDAS AG CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS) € IN MILLIONS

Note Dec. 31, 2022 Dec. 31, 2021
Operating activities:
Income before taxes from continuing operations 388 1,852
Adjustments for:
Depreciation, amortization and impairment losses 12, 13, 30, 33 1,375 1,149
Reversals of impairment losses 30 (4) (34)
Interest income 33 (23) (13)
Interest expense 33 138 111
Unrealized foreign exchange losses, net 85 51
Losses on sale of property, plant, and equipment and
16 13
intangible assets, net
Other non-cash effects from operating activities 30, 31 (8) 6
Operating profit before working capital changes 1,966 3,135
Increase in receivables and other assets (820) (170)
(Increase)/decrease in inventories (1,901) 125
Increase in accounts payable and other liabilities 721 226
Net cash (used in)/generated from operations before taxes (34) 3,316
Income taxes paid (424) (444)
Net cash (used in)/generated from operating activities –
(458) 2,873
continuing operations
Net cash (used in)/generated from operating activities –
(85) 320
discontinued operations
Net cash (used in)/generated from operating activities (543) 3,192
Investing activities:
Purchase of trademarks and other intangible assets (191) (173)
Proceeds from sale of trademarks and other intangible assets 1 1
Purchase of property, plant, and equipment (504) (494)
Proceeds from sale of property, plant, and equipment 1 1
Proceeds from sale of a disposal group 12 12
Proceeds from disposal of discontinued operations 1,165 177
(Purchase of)/proceeds from investments and other
(13) 49
long-term assets
Interest received 23 13
Net cash generated from/(used in) investing activities –
495 (415)
continuing operations
Net cash used in investing activities – discontinued operations – (9)
Net cash generated from/(used in) investing activities 495 (424)
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ADIDAS AG CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS) € IN MILLIONS

Note Dec. 31, 2022 Dec. 31, 2021
Financing activities:
Repayment of eurobond 17 – (600)
Proceeds from issuance of bonds 17 994 –
Interest paid (140) (111)
Repayments of lease liabilities (631) (572)
Dividend paid to shareholders of adidas AG 26 (610) (585)
Dividend paid to non-controlling interest shareholders (22) –
Acquisition of non-controlling interests (27) –
Repurchase of treasury shares 26 (2,500) (1,000)
Repurchase of treasury shares due to share-based payments (30) (32)
Proceeds from reissuance of treasury shares due to
25 27
share-based payments
Repayments of short-term borrowings 17 (18) (79)
Net cash used in financing activities – continuing operations (2,957) (2,952)
Net cash used in financing activities – discontinued operations (6) (39)
Net cash used in financing activities (2,963) (2,991)
Effect of exchange rates on cash (19) 57

Decrease in cash and cash equivalents (3,031) (165)
Cash and cash equivalents at beginning of year 05 3,828 3,994
Cash and cash equivalents at end of period 05 798 3,828
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NOTES
adidas AG is a listed German stock corporation and parent of the adidas Group located at Adi-Dassler-
Str. 1, 91074 Herzogenaurach, Germany, and is entered into the commercial register at the Local Court of
Fürth (HRB 3868). adidas AG and its subsidiaries (collectively ‘adidas,’ ‘the Group’ or ‘the company’)
design, develop, produce, and market a broad range of athletic and sports lifestyle products.
01 GENERAL
The consolidated financial statements of adidas AG as at December 31, 2022, comprise adidas AG and its
subsidiaries and are prepared in compliance with International Financial Reporting Standards (IFRS), as
endorsed by the European Union (EU) as at December 31, 2022, and the additional requirements pursuant
to § 315e section 1 German Commercial Code (Handelsgesetzbuch – HGB).
The following amendments to existing standards and interpretations are effective for financial years
beginning on January 1, 2022, and have been applied for the first time to these consolidated financial
statements:
─ Amendments to IAS 16: Property, Plant, and Equipment: Proceeds before Intended Use (effective
date: January 1, 2022): The amendment prohibits entities from deducting from the cost of an item of
property, plant, and equipment, any proceeds of the sale of items produced while bringing that asset to
the location and condition necessary for it to be capable of operating in the manner intended by
management. Instead, an entity should recognize the proceeds from selling such items, and the costs
of producing those items, in profit or loss. In accordance with the transitional provisions, adidas
applies the amendments retrospectively only to items of property, plant, and equipment made
available for use on or after the beginning of the earliest period presented when the entity first applies
the amendment (the date of initial application). These amendments had no material impact on the
consolidated financial statements of adidas.
─ Annual Improvements to IFRS standards 2018 – 2020:
─ IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a

first-time adopter (effective date: January 1, 2022): The amendment permits a subsidiary that
has measured its assets and liabilities at carrying amounts recorded in their parent’s books to
also measure any cumulative translation differences using the amounts reported in the parent’s
consolidated financial statements. This amendment will also apply to associates and joint
ventures that have taken the same IFRS 1 exemption. These amendments had no impact on the
consolidated financial statements, as adidas is not a first-time adopter.
─ IFRS 9 Financial Instruments – Fees in the ‘10 per cent’ test for derecognition of financial
liabilities (effective date: January 1, 2022): The amendment clarifies the fees that an entity
includes when assessing whether the terms of a new or modified financial liability are
substantially different from the terms of the original financial liability. These fees include only
those paid or received between the borrower and the lender, including fees paid or received by
either the borrower or lender on the other’s behalf. In accordance with the transitional
provisions, adidas applies the amendment to financial liabilities that are modified or exchanged
on or after the beginning of the annual reporting period in which the entity first applies the
amendment (the date of initial application). These amendments had no material impact on the
consolidated financial statements of adidas.
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─ IAS 41 Agriculture – Taxation in fair value measurements (effective date: January 1, 2022): The
amendment removes the requirement in paragraph 22 of IAS 41 that entities exclude cash flows
for taxation when measuring the fair value of assets within the scope of IAS 41. These amendme-
nts had no impact on the consolidated financial statements of adidas as it did not have assets in
scope of IAS 41 as at the reporting date.
─ Amendments to IFRS 3 – Reference to the Conceptual Framework (effective date: January 1, 2022):
The amendments replace a reference to a previous version of the International Accounting Standards
Board’s (IASB) Conceptual Framework (1989) with a reference to the current version issued in March
2018 without significantly changing its requirements. The amendments add an exception to the
recognition principle of IFRS 3 ‘Business Combinations’ to avoid the issue of potential ‘day 2’ gains or
losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37
‘Provisions, Contingent Liabilities and Contingent Assets’ or IFRIC 21 ‘Levies,’ if incurred separately.
The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the
Conceptual Framework, to determine whether a present obligation exists at the acquisition date. The
amendments also add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for
recognition at the acquisition date. In accordance with the transitional provisions, the Group applies the
amendments prospectively, i.e., to business combinations occurring after the beginning of the annual
reporting period in which it first applies the amendments (the date of initial application). These
amendments had no material impact on the consolidated financial statements of adidas as there were
no contingent assets, liabilities, or contingent liabilities within the scope of these amendments that
arose during the period.
─ Amendments to – IAS 37 Onerous Contracts: Cost of Fulfilling a Contract (effective date:

January 1, 2022): An onerous contract is a contract under which the unavoidable costs of meeting the
obligations under the contract (i.e., the costs that adidas cannot avoid because it has signed the
contract) exceed the economic benefits expected to be received under it. The amendments specify that
when assessing whether a contract is onerous or loss-making, an entity needs to include costs that
relate directly to a contract to provide goods or services including both incremental costs (e.g., the
costs of direct labor and materials) and an allocation of costs directly related to contract activities (e.g.,
depreciation of equipment used to fulfill the contract and costs of contract management and
supervision). General administrative costs do not relate directly to a contract and are excluded unless
they are explicitly chargeable to the counterparty under the contract. This amendment had no material
impact on the consolidated financial statements of adidas.
New standards and interpretations as well as amendments to existing standards and interpretations are
usually not applied by adidas before the EU effective date.
The following new standards and interpretations and amendments to existing standards and
interpretations issued by the IASB, endorsed by the EU, and which are effective for financial years
beginning after January 1, 2022, have not been applied in preparing these consolidated financial
statements:
─ IFRS 17 Insurance Contracts and Amendments to IFRS 17 (effective date: January 1, 2023): The new
standard covers the recognition and measurement, presentation and disclosure related to all types of
insurance contracts. IFRS 17 is effective for reporting periods beginning on or after January 1, 2023,
and once effective, will replace IFRS 4 Insurance Contracts. No material impact is expected on the
consolidated financial statements.
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─ Amendments to IAS 8: Definition of Accounting Estimates (effective date: January 1, 2023): In

February 2021, the IASB issued amendments to IAS 8, in which it introduces a definition of ‘accounting
estimates.’ The amendments clarify the distinction between changes in accounting estimates and
changes in accounting policies and the correction of errors. Also, they clarify how entities use
measurement techniques and inputs to develop accounting estimates. The amendments apply to
changes in accounting policies and changes in accounting estimates that occur on or after the start of
the effective date. Earlier application is permitted as long as this fact is disclosed. The amendments
are not expected to have a material impact on adidas’ consolidated financial statements.
─ Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies (effective
date: January 1, 2023): In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice
Statement 2 Making Materiality Judgements, in which it provides guidance and examples to help
entities apply materiality judgments to accounting policy disclosures. The amendments aim to help
entities provide accounting policy disclosures that are more useful by replacing the requirement for
entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’
accounting policies and adding guidance on how entities apply the concept of materiality in making
decisions about accounting policy disclosures. The amendments to IAS 1 are applicable for annual
periods beginning on or after January 1, 2023 with earlier application permitted. Since the
amendments to the Practice Statement 2 provide non-mandatory guidance on the application of the
definition of ‘material’ to accounting policy information, an effective date for these amendments is not
necessary. Subject to the ongoing assessment, it is expected that the amendments will result in a
reduction in adidas’ accounting policy disclosures.
─ Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction (effective date: January 1, 2023): In May 2021, the Board issued amendments to IAS 12,
which narrow the scope of the initial recognition exemption under IAS 12, so that it no longer applies to
transactions that give rise to equal taxable and deductible temporary differences. The amendments
should be applied to transactions that occur on or after the beginning of the earliest comparative
period presented. In addition, at the beginning of the earliest comparative period presented, a deferred
tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be
recognized for all deductible and taxable temporary differences associated with leases and
decommissioning obligations. The amendments are not expected to have a material impact on adidas,
in particular since adidas did not apply the initial recognition exemption in the context of leases under
IFRS 16.
The following new standards and interpretations as well as amendments to existing standards and
interpretations were issued by the IASB. These are not yet endorsed by the EU and hence have not been
applied in preparing these consolidated financial statements:
─ Amendments to IAS 1: Classification of Liabilities as Current or Non-current (effective date:

January 1, 2024): In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to
specify the requirements for classifying liabilities as current or non-current. Beside others, the
amendments clarify what is meant by a right to defer settlement, that such a right to defer must exist
at the end of the reporting period, and that the classification is unaffected by the likelihood that an
entity will exercise its deferral right. The amendments are effective for annual reporting periods
beginning on or after January 1, 2024 and must be applied retrospectively. The amendments are not
expected to have a material impact on the consolidated financial statements of adidas.
The consolidated financial statements have in principle been prepared on the historical cost basis with the
exception of certain items in the statement of financial position, such as certain originated financial
instruments, derivative financial instruments, and plan assets, which are measured at fair value.
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On February 11, 2021, adidas decided to begin a formal process aimed at divesting Reebok. Due to the
initiation of that selling process, which led to a binding agreement with Authentic Brands Group LLC (ABG),
on August 12, 2021, the Reebok operating business was reported as discontinued operations and classified
as a disposal group held for sale since the resolution has been passed. As of February 28, 2022, the
company has formally completed the divestiture of Reebok to ABG. The assets and liabilities, which were
reported as assets/liabilities held for sale since February 2021, were consequently derecognized from the
consolidated statement of financial position as of February 28, 2022.
Business operations in 2022 were impacted by the effects of the continued coronavirus pandemic and
covid-19-related lockdowns in Greater China as well as by the challenging economic and market
environment globally. Estimates and assumptions relevant to the consolidated financial statements were
made to the best of our knowledge, based on current events and actions. Due to the ongoing uncertainties,
it is still difficult to predict the impact on assets and liabilities as well as income and expenses.
On February 24, 2022 Russia launched an invasion of Ukraine. The still ongoing conflict continue to affect
economic and global financial markets and increase the current economic challenges. As a result of the
ongoing conflict, adidas took the decision in October 2022 to permanently wind down its business
operations in Russia, after having initially introduced a temporary suspension of the business in March
2022. The impairment of Property, plant, and equipment and Right-of-use-assets recognized in this
context as well as the recognition of related provisions has had a negative impact of € 120 million on net
income from continuing operations. ► SEE NOTE 10 ► SEE NOTE 11 ► SEE NOTE 19
In October 2022, adidas terminated the Yeezy partnership with immediate effect, discontinued the
distribution of Yeezy brand products, and stopped all payments to Ye and his companies. adidas is the sole
owner of all design rights to existing products as well as previous and new colorways under the
partnership. As of December 31, 2022, adidas intends to make use of these rights as early as 2023 and to
leverage the existing inventories. As of December 31, 2022, at adidas’ discretion, there was no lower net
realizable value and therefore no impairment loss was recognized on the existing inventories.
Furthermore, adidas believes that there is no other present obligation related to the termination of the
agreement and therefore no provision had to be recognized as of December 31, 2022. ► SEE NOTE 08
The 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
exactly sum up to totals provided. This can also lead to individual amounts rounded to zero.
02 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements are prepared in accordance with the consolidation, accounting, and
valuation principles described below.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the financial statements of adidas AG and all its direct and
indirect subsidiaries, which are prepared in accordance with uniform accounting principles. An entity is
considered a subsidiary if it is controlled by adidas AG. Control exists when adidas is exposed to, or has
rights to, variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee.
Effective as of December 2019, an amendment to the contractual arrangements existing between Agron,
Inc., Los Angeles, California (USA), and adidas entered into force granting adidas the power to approve key
financial and operational targets as well as the organizational structure of Agron, Inc. adidas has the right
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to, and is exposed to, the returns from its contractual business relations with Agron, Inc., which are
dependent on the level of its net sales and overall profitability. As a result of the extended power, adidas
has the ability to directly influence the amount of these variable returns and consequently obtained control
over Agron, Inc. As adidas holds no equity interests of Agron, Inc., both net assets as well as income and
expenses are attributable entirely to the non-controlling interest. adidas has not transferred any
consideration to the owners of Agron, Inc. in relation to the amendment of the contractual arrangements.
The number of consolidated subsidiaries developed as follows in 2022 and 2021, respectively:
NUMBER OF CONSOLIDATED SUBSIDIARIES
2022 2021
January 1 120 121
First-time consolidated subsidiaries 1 2

Thereof: newly founded 1 2
Deconsolidated/divested subsidiaries (8) (2)
Intercompany mergers (2) (1)
December 31 111 120
The subsidiaries are held either directly by adidas AG or indirectly via the two holding companies adidas
Beteiligungsgesellschaft mbH in Germany or adidas International B.V. in the Netherlands.
A schedule of the shareholdings of adidas AG is shown in Attachment I to the consolidated financial

statements. This schedule comprises information about the name and domicile of all consolidated
subsidiaries, as well as the respective share held in the capital of these subsidiaries. Furthermore, a
schedule of the shareholdings of adidas AG is published on the electronic platform of the German Federal
Gazette. ► SEE SHAREHOLDINGS
Within the scope of the first-time consolidation, all acquired assets and liabilities are recognized in the
statement of financial position at fair value at the acquisition date. A debit difference between the
acquisition cost and the proportionate fair value of assets, liabilities and contingent liabilities is recognized
as goodwill. A credit difference is recorded in the consolidated income statement after a reassessment of
the fair value of the assets, liabilities and contingent liabilities has been performed. In cases where not all
of the shares in the investment in a subsidiary are acquired, a non-controlling interest measured initially
as a proportionate share of net assets is recognized at the date of the first-time consolidation.
Acquisitions of additional investments in subsidiaries that are already controlled are recorded as equity
transactions. Therefore, neither fair value adjustments of assets and liabilities nor gains or losses are
recognized. Any difference between the cost for such an additional investment and the carrying amount of
the net assets at the acquisition date is recorded directly in shareholders’ equity.
The financial effects of intercompany transactions as well as any unrealized gains and losses arising from
intercompany business relations are eliminated in preparing the consolidated financial statements.
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PRINCIPLES OF MEASUREMENT
The following table includes an overview of selected subsequent measurement principles used in the
preparation of the consolidated financial statements.
OVERVIEW OF SELECTED SUBSEQUENT MEASUREMENT PRINCIPLES
Subsequent measurement principle
Assets
Cash and cash equivalents Amortized cost
Cash and cash equivalents (investments in certain
Fair value through profit or loss
money market funds)
Accounts receivable Amortized cost
Inventories Lower of cost and net realizable value
Lower of carrying amount of the disposal group and fair
Assets and liabilities classified as held for sale
value less costs to sell
Property, plant, and equipment Amortized cost
Right-of-use assets Amortized cost
Goodwill Impairment-only approach
Intangible assets (except goodwill):
With definite useful life Amortized cost
With indefinite useful life Impairment-only approach
Financial assets See separate table
Liabilities
Borrowings Amortized cost
Accounts payable Amortized cost
Liabilities/provisions for cash-settled share-based
Fair value
payment arrangements
Contract liabilities Expected settlement amount
Other financial liabilities Amortized cost
Provisions:
Pensions Projected unit credit method
Other provisions Expected settlement amount
Accrued liabilities Amortized cost
Lease liabilities Amortized cost
Financial assets are classified and measured according to IFRS 9. All purchases and sales of financial
assets, with the exception of trade receivables, are recognized on the trade date and initially measured at
fair value. At initial recognition, trade receivables that do not have a significant financing component are
measured at their transaction price. Subsequently, a financial asset is measured at amortized cost, fair
value through other comprehensive income (debt instrument), fair value through other comprehensive
income (equity instrument), or fair value through profit or loss.
A financial asset is measured at amortized cost if it meets both of the following conditions and is not
designated at fair value through profit or loss: the financial asset is held within a business model whose
objective is to hold assets to collect contractual cash flows (business model ‘Hold to collect’); and the
financial asset’s contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
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A financial asset is measured at fair value through other comprehensive income if it meets both of the
following conditions and is not designated at fair value through profit or loss: the financial asset is held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets (business model ‘Hold to collect and sell’); and its contractual terms give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
In principle, all investments in equity instruments are measured at fair value through profit or loss. At
initial recognition, an entity may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value of an investment in an equity instrument that is neither held for
trading nor a contingent consideration acquired by a purchaser in a business combination. This election is
made on an investment-by-investment basis.
All financial assets, which are not classified as measured at amortized cost or at fair value through other
comprehensive income as described above, are measured at fair value through profit or loss.
Financial assets are only reclassified when the business model for managing financial assets is changed,
in which case all affected financial assets are reclassified.
The subsequent measurement of financial assets is as follows:
OVERVIEW OF FINANCIAL ASSET SUBSEQUENT MEASUREMENT PRINCIPLES ACCORDING TO IFRS 9
Subsequent
IFRS 9 category Subsequent measurement principle measurement
These assets are subsequently measured at fair value.
Fair value through Fair value through
Net gains and losses, including any interest or dividend
profit or loss profit or loss
income, are recognized in profit or loss.
These assets are subsequently measured at amortized
cost using the effective interest method. The amortized
cost is reduced by impairment losses. Interest income,
Amortized cost Amortized cost
foreign exchange gains and losses and impairment losses
are recognized in profit or loss. Any gain or loss on
derecognition is recognized in profit or loss.
Interest income calculated using the effective interest
Fair value through
method, foreign exchange gains and losses and Fair value through
other comprehensive
impairment losses are recognized in profit or loss. other comprehensive
income
Other net gains and losses are recognized in other income
(debt instrument)
comprehensive income. On derecognition, accumulated
gains and losses are reclassified to profit or loss.
Fair value through Dividends are recognized as income in profit or loss
Fair value through
other comprehensive unless the dividend clearly represents a recovery of
other comprehensive
income part of the cost of the investment. Other gains and
income
(equity instrument) losses are recognized in other comprehensive income
and are never reclassified to profit or loss.
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CURRENCY TRANSLATION
The consolidated financial statements are presented in euros (€), which is also the parent company’s
functional currency. For each entity, the Group determines the functional currency.
Transactions in foreign currencies are initially recorded in the respective functional currency by applying
the spot exchange rate valid at the transaction date to the foreign currency amount.
In the individual financial statements of subsidiaries, monetary items denominated in non-functional

currencies of the subsidiaries are generally translated into the functional currency at closing exchange
rates at the balance sheet date. The resulting currency gains and losses are recognized directly in profit or
loss.
This excludes monetary items that are designated as part of the hedge of the Group’s net investment in a
foreign operation. These are recognized in other comprehensive income (OCI) until the net investment is
disposed of, at which time the cumulative amount is reclassified to profit or loss. Tax charges and credits
attributable to exchange differences on those monetary items are also recognized in OCI.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair
value in a foreign currency are translated using the exchange rates at the date when the fair value is
determined. The gain or loss arising on translation of non-monetary items measured at fair value is
treated in line with the recognition of the gain or loss on the change in fair value of the item.
Assets and liabilities of the company’s non-euro functional currency subsidiaries that are included in the
consolidated financial statements are translated using closing exchange rates at the balance sheet date
into the presentation currency, the euro. For practical reasons, revenues and expenses are translated at
average rates for the period, which approximate the exchange rates on the transaction dates. The
resulting exchange differences arising on consolidation are recognized in OCI.
A summary of exchange rates to the euro for major currencies in which the Group operates is as follows:
EXCHANGE RATES
Average rates for the year

€ 1 equals ending Dec. 31, Spot rates at Dec. 31,
2022 2021 2022 2021
USD 1.0539 1.1836 1.0666 1.1326
GBP 0.8525 0.8601 0.8869 0.8403
JPY 138.0550 129.8295 140.6600 130.3800
CNY 7.0891 7.6362 7.4095 7.2266
MXN 21.2037 23.9943 20.7683 23.1812
HYPERINFLATION
To reflect changes in purchasing power at the balance sheet date, the carrying amounts of non-monetary
assets and liabilities, shareholders’ equity, and comprehensive income of subsidiaries in hyperinflationary
economies are restated in terms of a measuring unit current at the balance sheet date. These are indexed
using a general price index in accordance with IAS 29 ‘Financial Reporting in Hyperinflationary
Economies.’ In contrast, no restatement is required for monetary assets and liabilities carried at amounts
current at the end of the balance sheet date because they represent money held, to be received, or to be
paid. ► SEE NOTE 34
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Gains and losses on the net monetary position are included in the financial result.
Non-monetary assets that have been restated following the guidance in IAS 29 are still subject to
impairment assessment in accordance with the guidance in the relevant IFRS.
DERIVATIVE FINANCIAL INSTRUMENTS

adidas uses derivative financial instruments, such as currency options, forward exchange contracts, and
stock price options, as well as forward stock transactions and currency swaps, to hedge its exposure to
foreign-exchange and stock-price risks. In accordance with its Treasury Policy, the company does not
enter into transactions with derivative financial instruments for trading purposes.
Derivative financial instruments are initially recognized in the statement of financial position at fair value,
and are subsequently also measured at their fair value. The method of recognizing the resulting gains or
losses is dependent on the nature of the hedge. On the date a derivative contract is entered into, adidas
designates derivatives as either a hedge of a forecast transaction (cash flow hedge) or a hedge of a net
investment in a foreign operation. In applying cash flow hedge accounting, adidas designates the spot
element of forward exchange contracts and the intrinsic value of currency options to hedge its currency
risk and applies a hedge ratio of 1:1 (spot-to-spot designation). The forward element of forward exchange
contracts and the time value component of currency options are excluded from the designation of the
hedging instrument.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges or net
investments that are effective as defined in IFRS 9 are recognized in equity.
adidas applies the ‘cost of hedging’ approach for dedicated cash flow hedges. Changes in the fair value of
the time value component of currency options, as well as the forward element in forward exchange
contracts, are separately accounted for as a cost of hedging and are recognized separately in equity as a
cost of hedging reserve. When the effectiveness is not 100%, the ineffective portion of the change in the
fair value is recognized in the consolidated income statement. Accumulated gains and losses in equity are
transferred to the consolidated income statement in the same periods, during which the hedged forecast
transaction affects the consolidated income statement.
Hedges of net investments in foreign entities are accounted for in a similar way to cash flow hedges. The
effective currency gains and losses in the derivative and all gains and losses arising on the translation of
the borrowing are recognized in equity with the exception of the cross-currency basis spread.
Certain derivative transactions, while providing effective economic hedges under the company’s risk-
management policies, do not qualify for hedge accounting under the specific rules of IFRS 9.
adidas documents the relationship between hedging instruments and hedge objects as well as the risk
management objectives and strategies for undertaking various hedge transactions at transaction
inception. This process includes linking all derivatives designated as hedges to specific firm commitments
and forecast transactions. adidas also assesses the effectiveness and possible ineffectiveness of its
hedged derivatives by using generally accepted methods of effectiveness testing, such as the ‘hypothetical
derivative method’ or the ‘dollar offset method.’ The economic relationship between the hedging
instrument and hedged item is qualitatively and quantitatively ascertainable, and adidas judges the
effectiveness of the hedging relationship with the hypothetical derivative method. The main sources of
expected ineffectiveness are due to changes in the credit risk and in the timing of the hedged transactions.
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The fair values of currency options, forward exchange contracts, and forward stock transactions are
determined on the basis of market conditions on the reporting date. The fair value of a currency option is
determined using generally accepted models. The fair value of an option is influenced not only by the
remaining term of the option but also by additional factors, such as the actual foreign exchange rate and
the volatility of the underlying foreign currency base. The company determines fair values taking the
counterparty risk into consideration.
CASH AND CASH EQUIVALENTS

Cash and cash equivalents represent cash at banks, cash on hand, and short-term deposits with
maturities of three months or less from the date of acquisition, such as commercial papers and
investments in money market funds.
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value.
Cash equivalents can partly include investments in money market funds. Classification and measurement
under IFRS 9 are performed based on the company’s business model for managing these financial assets
and the contractual cash flow characteristics. Investments in money market funds contain cash flows
other than those of principal and interest on principal. As a result, those investments are measured at fair
value through profit or loss.
ACCOUNTS RECEIVABLE
A receivable is recognized if an amount of consideration that is unconditional is due from the customer
(i.e., if only the passage of time is required before payment of that consideration is due). Accounts
receivable that do not contain a significant financing component are recognized at the transaction price,
which represents the amount of consideration to which the company expects to be entitled in exchange for
transferring promised goods or services to a customer, excluding amounts collected on behalf of third
parties. Subsequently, these are measured at amortized cost.
OTHER FINANCIAL ASSETS

Other financial assets are classified and measured under IFRS 9, based on the company’s business model
for managing these assets and the contractual cash flow characteristics. Those other financial assets that
give rise to cash flows consisting only of payments of principal and interest and that are assigned to the
business model ‘Hold to collect’ are measured at amortized cost. adidas mainly has security deposits and
receivables from credit card companies and electronic marketplaces that fall under this category.
Other financial assets that give rise to cash flows consisting only of payments of principal and interest and
that are assigned to the business model ‘Hold to collect and sell’ are measured at fair value through OCI.
This category mainly includes other investments and securities to hedge long-term variable compensation
components.
Other financial assets, which are neither within the business model ‘Hold to collect’ nor ‘Hold to collect
and sell,’ are measured at fair value through profit or loss. This category mainly includes secured
promissory notes and earn-out components.
LONG-TERM FINANCIAL ASSETS

Long-term financial assets are distinguished between debt and equity instruments and classified
according to IFRS 9 as follows:
Debt instruments are measured depending on the company’s business model for managing financial
assets and the contractual cash flows. Only financial assets that are held within the business model ‘Hold
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to collect’ with the objective to collect the contractual cash flows, which represent solely payments of
principal and interest on the principal amount outstanding on a specific date, are measured at amortized
cost. adidas classifies certain loans within this category. All other financial assets which do not fulfill one
of these criteria are measured at fair value – either at fair value through profit or loss or at fair value
through other comprehensive income (debt). adidas has no long-term financial assets in the category fair
value through comprehensive income (debt instrument) and shows loans which do not fulfill the
contractual cash flow characteristics in the category fair value through profit or loss. ► SEE NOTE 14
Generally, all investments in equity instruments are measured at fair value through profit or loss, unless
these investments represent investments that the company intends to hold for long-term strategic
purposes, which are then designated as equity securities at fair value through other comprehensive
income (equity).
The designation of certain equity instruments at fair value through other comprehensive income (equity) is
based on a strategic Management decision.
INVENTORIES
Finished goods and merchandise are valued at the lower of cost or net realizable value, which is the
estimated selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale. Costs are determined using a standard valuation method, the
‘average cost method.’ Costs of finished goods include cost of direct materials and labor and the
components of the manufacturing overheads which can be reasonably attributed to finished goods. The
allocation of overheads is based on the planned average utilization. The net realizable value allowances
are computed consistently throughout the company based on the age and expected future sales of the
items on hand. ► SEE NOTE 08
DISCONTINUED OPERATIONS
A part of the adidas Group, whose operations and cash flows can be clearly distinguished operationally and
for financial reporting purposes from the other operating businesses, is classified as a discontinued
operation if the component has either been disposed of or is classified as held for sale, and:
─ represents a separate major line of business or geographic area of operations,

─ is part of a single coordinated plan to dispose of a separate major line of business or geographic area
of operations, or
─ is a subsidiary acquired exclusively with a view to resale.
Discontinued operations are excluded from the net income/loss from continuing operations and are
presented as a single amount as gain/loss from discontinued operations, net of tax in the consolidated
income statement. When an operation is classified as a discontinued operation, the comparative
consolidated income statement and consolidated statement of cash flows are restated and presented as if
the operation had been classified as such from the start of the comparative year. ► SEE NOTE 03
ASSETS/LIABILITIES AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE

Assets/liabilities and disposal groups classified as held for sale are non-current assets and liabilities
expected to be realized principally through a sale rather than through continuing use. The criteria for held
for sale classification is regarded as met only when the sale is highly probable, and the asset or disposal
group is available for immediate sale in its present condition. It being unlikely that significant changes to
the sale will be made or that the decision to sell will be withdrawn is also a prerequisite for the
classification.
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The sale must be expected to be completed within one year from the date of the classification. Assets and
liabilities classified as held for sale are hence presented separately as current items in the consolidated
statement of financial position.
These are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are
the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance
costs and income tax expense.
Assets classified as held for sale are not depreciated on a straight-line basis.
Impairment losses on initial classification as held-for-sale or held for distribution and subsequent gains
and losses on remeasurement are recognized in profit or loss. Reversals of impairment losses due to a
subsequent increase in fair value are recognized up to a maximum of the amount of impairment losses
that, unless attributable to goodwill, were recognized prior to classification of the asset or disposal group
in accordance with IFRS 5 and IAS 36, or were recognized at or after the date of classification in
accordance with IFRS 5.
Additional disclosures are provided in these Notes. ► SEE NOTE 03
PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment are measured at amortized cost. This comprises all costs directly
attributable to bringing the asset to the condition necessary for it to be capable of operating in the manner
intended by Management less any accumulated depreciation and accumulated impairment losses.
Depreciation is recognized for those assets, with the exception of land and construction in progress, over
the estimated useful life utilizing the ‘straight-line method’ and taking into account any potential residual
value, except where the ‘declining-balance method’ is more appropriate in light of the actual utilization
pattern. Parts of an item of property, plant, and equipment with a cost that is significant in relation to the
total cost of the item are depreciated separately. ► SEE NOTE 10
Estimated useful lives are as follows:
ESTIMATED USEFUL LIVES OF PROPERTY, PLANT, AND EQUIPMENT
Years
Land indefinite
Buildings and leasehold improvements 20 – 50
Furniture and fixtures 3–5
Technical equipment and machinery as well as other equipment 2 – 10
Expenditure for repairs and maintenance is expensed as incurred. Renewals and improvements are
capitalized and depreciated separately, if the recognition criteria are met.
IMPAIRMENT LOSSES ON NON-FINANCIAL ASSETS

If facts and circumstances indicate that non-current assets (e.g., property, plant, and equipment as well as
intangible assets including goodwill and contract assets) might be impaired, the recoverable amount is
determined. This is measured at the higher of fair value less costs of disposal (net disposal price) and
value in use. Non-financial items measured at the recoverable amount primarily relate to impaired
property, plant, and equipment being measured based on value in use or on fair value taking unobservable
inputs (e.g., profit or cash flow planning) into account. The fair value is measured at Level 3 according to
IFRS 13 ‘Fair Value Measurement.’
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An impairment loss is recognized in other operating expenses or reported in goodwill impairment losses if
the carrying amount exceeds the recoverable amount.
The impairment test for goodwill is performed based on groups of cash-generating units, which represent
the lowest level within the company at which goodwill is monitored for internal management purposes. If
there is an impairment loss for a group of cash-generating units, first the carrying amount of any goodwill
allocated to the group of cash-generating units is reduced. Subsequently, provided that the recoverable
amount is lower than the carrying amount, the other non-current assets of the group of cash-generating
units are reduced pro rata on the basis of the carrying amount of each asset in the group of cash-
generating units. In allocating an impairment loss, the carrying amount of an individual asset is not
reduced below its fair value. The amount of the impairment loss that would otherwise have been allocated
to the asset is allocated pro rata to the other assets of the cash-generating unit and groups of cash-
generating units.
The impairment test for trademarks with indefinite useful lives is performed on the relevant level of cash-
generating units.
Irrespective of whether there is an impairment indication, intangible assets with an indefinite useful life
and goodwill acquired in business combinations are tested annually on December 31 for impairment. In
the case that indicators for impairment are present at any point in time other than on December 31, these
assets are also tested for impairment at this point in time.
An impairment loss recognized in goodwill is not reversible. With respect to all other impaired assets, an
impairment loss recognized in prior periods is only reversed affecting the consolidated income statement
if there has been a change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined (net of depreciation or amortization) if no impairment loss had been
recognized.
IMPAIRMENT LOSSES ON FINANCIAL ASSETS

Impairment losses for financial assets measured at amortized cost or at fair value through other
comprehensive income (debt instrument) are recognized in accordance with IFRS 9 ‘Financial
Instruments.’ The standard requires that not only historical data, but also future expectations and
projections are taken into consideration when accounting for impairment losses (‘expected credit loss’
model).
adidas consistently applies the simplified approach and recognizes lifetime expected credit losses for all
accounts receivable. In order to calculate a collective loss allowance, all accounts receivable sharing
similar credit risk characteristics are allocated into several portfolios based on geographical regions and
macroeconomic indicators. Historical payment and aging patterns for accounts receivable are analyzed
individually for each of the portfolios to determine the probability of default, which is further adjusted by
forward-looking factors derived primarily from the Credit Default Swap (CDS) spreads of the countries
where adidas runs its operations. The adjusted probability of default is then applied in combination with a
loss given default and exposure at default as a percentage rate to calculate the expected credit loss for
each portfolio and aging bucket. The percentage rates are reviewed on a regular basis to ensure that they
reflect the latest data on credit risk. In case objective evidence of credit impairment is observed for
accounts receivable from a specific customer, a detailed analysis of the credit risk is performed, and an
appropriate individual loss allowance is recognized for this customer. Accounts receivables are considered
to be in default when it is expected that the debtor will not fulfill its credit obligations toward adidas.
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Cash and cash equivalents measured at amortized cost are subject to a general impairment approach
under IFRS 9. adidas applies the low credit risk exemption for the majority of such instruments due to the
low credit risk for these investments, which is based upon the investment grade of their counterparties
(defined by the company as equivalent of BBB+ or higher). A significant increase of credit risk is assumed
for cash and cash equivalents when the instruments are more than 30 days past due. adidas monitors the
credit risk associated with cash and cash equivalents taking into consideration the economic environment,
external credit ratings, and/or CDS spreads of counterparty financial institutions, and using established
exposure limits. Expected credit loss of cash and cash equivalents is calculated based on the probability of
default and recovery rates derived from CDS spreads or external credit ratings of the counterparties. Cash
and cash equivalents are considered to be in default when they are more than 90 days past due.
Other financial assets within the scope of IFRS 9 impairment analysis include mainly security deposits as
well as accounts receivable from credit card companies and electronic marketplaces. The credit risk
associated with such financial assets is determined based on the economic environment, external credit
ratings, and/or CDS spreads of counterparty financial institutions. Other financial assets are considered to
be in default when they are more than 90 days past due.
Objective evidence that credit impairment of financial assets has occurred includes, for instance,
significant financial difficulty of the debtor/issuer, indications of their potential bankruptcy, the
deterioration of the market for their products, and general macroeconomic problems. The gross carrying
amount of financial assets is written off when adidas, based on a case-by-case assessment, assumes that
their recovery is no longer possible.
Impairment losses on accounts receivable are presented in the line item ‘Impairment losses (net) on
accounts receivable and contract assets,’ while impairment losses on all other financial assets are shown
in the line item ‘Financial expenses’ in the consolidated income statement.
LEASES
adidas assesses whether a contract is or contains a lease according to IFRS 16 ‘Leases’ at the inception of
the contract. IFRS 16 defines a lease as a contract that conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. A contract conveys the right to control the use of
an identified asset if the lessee has the right to obtain substantially all the economic benefits from the use
of the identified asset (e.g., by having the exclusive right to use the asset throughout that period) and the
right to direct the use of the identified asset throughout the period of use.
In its role as a lessee, adidas leases various types of assets, particularly buildings (retail stores, offices,
warehouses, etc.), land, technical equipment and machinery (warehouse equipment, production machines,
etc.), motor vehicles, and computer hardware, as well as furniture and fixtures. Lease contracts are
typically negotiated for fixed periods of up to 99 years but may include extension or termination options.
Lease terms are negotiated individually and may contain a wide range of different terms and conditions.
adidas makes use of the recognition exemption in IFRS 16 to not recognize right-of-use assets and lease
liabilities for leases of low-value assets (i.e., value of the underlying asset, when new, is € 5,000 or less)
and short-term leases (shorter than twelve months and the agreement does not include a purchase
option). The lease payments associated with these leases are recognized as an expense on a straight-line
basis over the lease term. Real estate and automobile leases are excluded from the classification as ‘low-
value assets.’
Furthermore, adidas exercises the option for lessees to combine lease payments with payments for non-
lease components in the calculation of the lease liability and right-of-use asset for all lease asset classes
except for real estate.
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adidas recognizes a right-of-use asset and a corresponding lease liability at the lease commencement
date. At the commencement date, adidas initially measures the lease liability at the present value of the
lease payments that are not paid at that date. This includes fixed payments (including in-substance fixed
payments), less any lease incentives receivable, variable lease payments based on an index or a rate,
amounts expected to be payable by adidas under residual value guarantees, the exercise price of a
purchase option if adidas is reasonably certain to exercise that option, and payments of penalties for
terminating the lease, if the lease term reflects the lessee exercising that option. Other variable lease
payments are excluded from the measurement of the lease liability. The lease payments are discounted
using the interest rate implicit in the lease. If this rate cannot be readily determined, adidas uses its
incremental borrowing rate. Generally, adidas uses the incremental borrowing rate as the discount rate,
adjusted to reflect the country-specific risk, the contract currency-specific risk, and the lease term.
► SEE NOTE 11 ► SEE NOTE 20
After the commencement date, lease payments are split into redemption payments and interest payments.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest cost on
the lease liability using the effective interest rate and reducing the carrying amount to reflect the lease
payments made. The carrying amount of the lease liability is remeasured provided any
reassessments/lease modifications occur (including changes in the assessment of whether an extension
or termination option is reasonably certain to be exercised).
At the commencement date, the right-of-use asset is initially measured at cost, which is comprised of the
amount of the initial measurement of the lease liability, any lease payments made at or before the
commencement date, less any lease incentives received, any initial direct costs incurred by the lessee and
an estimate of costs to be incurred by adidas in dismantling and removing the underlying asset, restoring
the site on which it is located, or restoring the underlying asset to the condition required by the terms and
conditions of the lease. The right-of-use asset is subsequently measured at cost less any accumulated
depreciation and impairment losses and adjusted for certain remeasurements of the lease liability. In
principle, the right-of-use asset is depreciated on a straight-line basis over the lease term or the useful
life of the leased asset, whichever is shorter.
adidas applies judgment in determining the lease term for lease contracts including extension or
termination options. The assessment of whether the options are reasonably certain to be exercised has an
impact on the lease term and therefore may significantly affect the measurement of lease liabilities and
right-of-use assets, respectively.
Lease contract renegotiations that result in changes to the original contractual conditions, e.g., changes in
scope, consideration (including discounts and concessions), or lease term are treated as lease
modifications, even if they are a result of the coronavirus pandemic. Depending on the circumstances of
the renegotiation, either lease modifications are accounted for as a new separate contract or they trigger a
remeasurement of the lease liability using the discounted future lease payments. In the latter case, a
corresponding adjustment is made to the right-of-use asset with, in some instances, a difference
recognized in profit or loss.
Lease reassessments are the result of changes in assumptions or judgments, such as changes in lease
term due to amended estimates surrounding existing extension and termination options. It is necessary to
remeasure the lease liability using the discounted or existing future lease payments and make a
corresponding adjustment to the right-of-use asset.
In rare cases, adidas acts as a lessor when the company signs sub-leasing contracts for real estate
properties with third parties. These contracts are not material to the company’s consolidated financial
statements.
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adidas does not own any investment property.
GOODWILL
Goodwill is an asset representing the future economic benefits arising from assets acquired in a business
combination that are not individually identified and separately recognized. This results when the purchase
cost exceeds the fair value of acquired identifiable assets, liabilities, and contingent liabilities. Goodwill
arising from the acquisition of a foreign entity and any fair value adjustments to the carrying amounts of
assets received, liabilities, and contingent liabilities are treated as assets, liabilities, and contingent
liabilities of the respective reporting entity, and are translated at exchange rates prevailing at the date of
the initial consolidation.
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment
losses (Impairment-only approach). ► SEE NOTE 12
Goodwill is carried in the functional currency of the acquired foreign entity.
INTANGIBLE ASSETS (EXCEPT GOODWILL)

Intangible assets with indefinite useful lives (in particular trademarks) are recognized at purchase cost
and are subject to an impairment test at least on an annual basis (impairment-only approach).
Intangible assets with definite useful lives are valued at amortized cost. Amortization is calculated on a
straight-line basis over the estimated useful life, taking into account any potential residual value. ► SEE NOTE 13
Expenditure during the development phase of internally generated intangible assets is capitalized as
incurred if it fulfills the recognition criteria under IAS 38 ‘Intangible Assets.’ Development costs for
internally generated intangible assets are capitalized from the date on which the recognition criteria set
out in IAS 38 'Intangible Assets' are first met. The capitalized development costs are amortized on a
systematic basis from the day it is available for use.
Estimated useful lives are as follows:
ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS
Years
Trademarks indefinite
Software 3–7
Patents, trademarks and licenses 5 – 15
Websites 2
RESEARCH AND DEVELOPMENT

Research costs are expensed in full as incurred. Development costs for internally generated intangible
assets are also expensed as incurred if they do not meet the recognition criteria of IAS 38 ‘Intangible
Assets.’
BORROWINGS AND OTHER LIABILITIES

Borrowings (e.g., eurobonds) and other liabilities are recognized at fair value using the ‘effective interest
method,’ net of transaction costs incurred. In subsequent periods, long-term borrowings are stated at
amortized cost using the ‘effective interest method.’ Any difference between proceeds (net of transaction
costs) and the redemption value is recognized in the consolidated income statement over the term of the
borrowing.
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Compound financial instruments (e.g., convertible bonds) are divided into a liability component shown
under borrowings and into an equity component resulting from conversion rights. The equity component is
included in the capital reserve. The fair value of the liability component is determined by discounting the
interest and principal payments of a comparable liability without conversion rights, applying risk-adjusted
interest rates. The liability component is subsequently measured at amortized cost using the ‘effective
interest method.’ The equity component is determined as the difference between the fair value of the total
compound financial instrument and the fair value of the liability component and is reported within equity.
There is no subsequent measurement of the equity component. At initial recognition, directly attributable
transaction costs are assigned to the equity and liability component pro rata on the basis of the respective
carrying amounts.
PROVISIONS AND ACCRUED LIABILITIES

Provisions are recognized where a present obligation (legal or constructive) to third parties has been
incurred as a result of a past event that can be estimated reliably and is likely to lead to an outflow of
resources, and where the timing or amount is uncertain. The expense relating to a provision is presented
in the consolidated income statement. Non-current provisions are discounted if the effect of discounting is
material, with the interest expense being reported as financial expenses. ► SEE NOTE 19
Accrued liabilities are liabilities to pay for goods or services that have been received or supplied but have
not been paid, invoiced, or formally agreed with the supplier, including amounts due to employees. Here,
however, the timing and amount of an outflow of resources is not uncertain. ► SEE NOTE 21
PENSIONS AND SIMILAR OBLIGATIONS

Provisions and expenses for pensions and similar obligations relate to the company’s obligations for
defined benefit and defined contribution plans. The obligations under defined benefit plans are determined
separately for each plan by valuing the employee benefits accrued in return for their service during the
current and prior periods. These benefit accruals are discounted to calculate their present value, and the
fair value of any plan assets is deducted in order to determine the net liability. The discount rate is set on
the basis of yields of high-quality fixed-rate corporate bonds at the balance sheet date provided there is a
deep market for such corporate bonds in a given currency. Otherwise, government bond yields are used as
a reference. Calculations are performed by qualified actuaries using the ‘projected unit credit method’ in
accordance with IAS 19 Employee Benefits. Obligations for contributions to defined contribution plans are
recognized as an expense in the consolidated income statement as incurred. ► SEE NOTE 24
CONTINGENT LIABILITIES
Contingent liabilities are possible obligations that arise from past events and whose existence will be
confirmed only by the occurrence of one or more uncertain future events not wholly within the control of
adidas. Additionally, contingent liabilities may be present obligations that arise from past events, but which
are not recognized because it is not probable that an outflow of resources will be required to settle the
obligation, or the amount of the obligation cannot be measured with sufficient reliability. Contingent
liabilities are not recognized in the consolidated statement of financial position but are disclosed and
explained in the Notes. ► SEE NOTE 39
TREASURY SHARES
When adidas AG shares are repurchased and recognized as treasury shares, the amount of the
consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a
deduction from equity. The nominal value of € 1 per treasury share is debited to share capital. Any
premium or discount to the nominal value is shown as an adjustment to the retained earnings. If treasury
shares are sold or re-issued, the nominal value of the shares will be credited to share capital and the
amount exceeding the nominal value will be added to the retained earnings.
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CONTRACT ASSETS AND CONTRACT LIABILITIES

Contract assets and liabilities are recognized in connection with revenues arising from the licensing-out of
the right to use the brands to third parties. Contract assets represent the company’s conditional right to
consideration in exchange for rights that adidas has transferred to a third party, and contract liabilities
represent the company’s obligation to transfer rights to a third party for which adidas has already received
consideration from the third party. Contract assets are subject to impairment assessment. Refer to
accounting policies on Impairment Losses on financial assets. Contract liabilities are recognized as
income when the control of the related goods or services is transferred to the customer.
REVENUE
Revenue derived from the sale of goods is recognized when adidas has satisfied the respective
performance obligation by transferring the promised goods to the customer. The goods are transferred at
the point in time when the customer obtains control of the respective goods. The timing of the transfer of
control depends on the individual terms of the sales agreement (terms of delivery).
The amount of revenue to be recognized is determined based on the consideration adidas expects to be
entitled to in exchange for transferring the promised goods or services to the customer, taking into
account returns, discounts, and rebates.
Under certain conditions and in accordance with contractual agreements, the company’s customers have
the right to return products and to either exchange them for similar or other products or to return the
products against the issuance of a credit note. Amounts for estimated returns related to revenues are
accrued based on past experience of average return rates and average actual return periods by means of a
refund liability. The return assets are measured at the former carrying amount of the
inventories/products, less any handling costs and any potential impairment.
Provided that the customers meet certain predefined conditions, adidas grants its customers different
types of globally aligned performance-based rebates. Examples include rebates for customers’ increasing
adidas product sales, for customer loyalty, and for sell-out support, e.g., through retail space/franchise
store management. As soon as it is assumed that the customer fulfills the requirements for being granted
the rebate, this amount is recognized as a sales deduction via an accrued liability for marketing and sales.
Customer incentives and options as well as any obligation for adidas to pay for the delivery of goods to the
customer do not create separate performance obligations under IFRS 15 and are separated from revenue.
Customer incentives that were not contractually agreed upon as well as promises that were implied by
adidas’ customary business practice and did not bear the characteristics of a discount are accounted for
as marketing and point-of-sale expenses.
In addition, adidas generates revenue from the licensing-out of the right to use the brands to third parties.
The resulting sales-based royalty and commission income is recognized based on the contract terms on
an accrual basis, i.e., revenue is already realized even though the payment takes place at a later point in
time. Contracts with guaranteed minimum income result in contract assets and contract liabilities
depending on the timing of yearly payments received from customers. The performance obligation related
to these contract assets and liabilities is satisfied over the life of the contract, i.e., the guaranteed
minimum income per year is evenly distributed over twelve months, whereby payments are recorded as
arranged in the contract with the customer.
ADVERTISING AND PROMOTIONAL EXPENDITURE

Advance payments for media campaigns are included in prepaid expenses within other current and non-
current assets until the services are received, and upon receipt are expensed in full. Significant costs for
media campaigns are expensed on a straight-line basis over the intended duration of the media campaign.
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Promotional expenses including one-time up-front payments for promotion contracts are principally
expensed on a straight-line basis over the term of the agreement.
INTEREST
Interest is recognized as income or expense as incurred using the ‘effective interest method’ with the
exception of interest that is directly attributable to the acquisition, construction, or production of a
qualifying asset. This interest is capitalized as part of the cost of the qualifying asset.
Interest paid is presented within the net cash used in financing activities.
GOVERNMENT GRANTS
adidas receives government grants in the form of subsidies, subventions, or premiums from local,
national, or international government authorities such as those of the Free State of Bavaria, the Federal
Republic of Germany, and the European Union.
Government grants are recognized if there is adequate certainty that the grants will be received and that
the company satisfies the conditions attached.
Government grants are reported in the consolidated income statement as a deduction from the related
expenses.
INCOME TAXES
Current income taxes are computed in accordance with the applicable taxation rules established in the
countries in which adidas operates.
adidas computes deferred taxes for all temporary differences between the carrying amount and the tax
base of its assets and liabilities as well as for tax loss carry-forwards. As it is not permitted to recognize a
deferred tax liability for the initial recognition of goodwill, adidas does not compute any deferred taxes
thereon.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Deferred tax assets arising from deductible temporary differences and tax loss carry-forwards that exceed
taxable temporary differences are only recognized to the extent that it is probable that the entity
concerned will generate sufficient taxable income to realize the associated benefit. The carrying amount of
deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilized.
Income tax is recognized in the consolidated income statement unless it relates to items recognized
directly in equity, in which case it is recognized in equity. Deferred tax relating to items recognized outside
profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the
underlying transaction either in other comprehensive income or directly in equity.
When there is uncertainty over income tax treatments, adidas recognizes and measures current or
deferred tax assets or liabilities applying the requirements of IAS 12 and IFRIC 23. On a case-by-case
basis, adidas determines whether to consider each uncertain tax treatment separately or together with
one or more other uncertain tax treatments, depending on which approach better predicts the resolution
of the uncertainty.
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Where it is not considered probable that the tax authority will accept an uncertain tax treatment, adidas
reflects the effects of the uncertainty by using one of the following methods, depending on which method
better predicts the resolution of the uncertainty:
─ the single most likely amount or

─ the expected value based on the sum of the probability-weighted amounts.
In assessing whether and how an uncertain tax treatment affects the determination of taxable profits (tax
losses), tax bases, unused tax losses, unused tax credits, and tax rates, adidas assumes that a taxation
authority will examine amounts it has a right to examine and will have full knowledge of all relevant
information when making those examinations. ► SEE NOTE 35
SHARE-BASED PAYMENT
The cost of equity-settled share-based payment transactions with employees is determined by the fair
value at the grant date using an appropriate valuation model. That cost is recognized in personnel
expenses, together with a corresponding increase in equity (retained earnings), over the period in which
the service and, where applicable, the performance conditions are fulfilled (the vesting period). The
cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the company’s best estimate of the number
of equity instruments that will ultimately vest. ► SEE NOTE 27
Service-independent and non-market performance conditions are not taken into account when
determining the fair value of awards at the grant date, but the likelihood of the conditions being met is
assessed as part of the company’s best estimate of the number of equity instruments that will ultimately
vest. If the estimate is changed, even a credit in the consolidated income statement for the period can be
possible as it reflects the movement in cumulative expenses from the beginning to the end of that period.
No expense is recognized for awards that do not ultimately vest because non-market performance and/or
service conditions have not been met.
Equity-settled share-based payment transactions with parties other than employees are generally
measured at the fair value of the goods or services received, except where the fair value cannot be
estimated reliably, in which case they are measured at the fair value of the equity instruments granted,
measured at the date the entity obtains the goods or the counterparty renders the service.
For cash-settled share-based payment transactions, the goods or services acquired and the liability
incurred are measured at the fair value of the liability. Until the liability is settled, the fair value of the
liability is remeasured at the end of each reporting period and at the date of settlement, with all changes in
fair value recognized in profit or loss for the period.
ESTIMATION UNCERTAINTIES AND JUDGMENTS

The preparation of financial statements in conformity with IFRS requires the use of assumptions and
estimates that affect reported amounts and related disclosures. Although such estimates are based on the
best of our knowledge of current events and actions, actual results may ultimately differ from these
estimates. In 2022, assumptions and estimates continued to be significantly impacted by the coronavirus
pandemic as well as increased macroeconomic challenges, and due to the ongoing situation, future
assumptions and estimates will be impacted by this.
The decision to permanently discontinue the business activities in Russia leads in particular to an
increased level of judgment and estimation uncertainties with regard to provisions recognized in this
context. ► SEE NOTE 19
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As a result of the termination of the Yeezy partnership, judgments were made in the preparation of the
consolidated financial statements, in particular with regard to the valuation of existing inventories and
other risks related to the termination of the partnership. ► SEE NOTE 08 ► SEE NOTE 19
The key assumptions concerning further future and other key sources of estimation uncertainty at the
balance sheet date, which have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are outlined in the respective Notes, which include in
particular accounts receivable, inventories, right-of-use-assets, goodwill, other provisions, pensions,
derivatives, and income taxes, as well as other financial commitments and contingencies. In addition, in
the previous year this also related to assets classified as held for sale and gain/loss from discontinued
operations. ► SEE NOTE 03 ► SEE NOTE 06 ► SEE NOTE 08 ► SEE NOTE 11 ► SEE NOTE 12 ► SEE NOTE 19 ► SEE NOTE 24 ► SEE NOTE 29 ► SEE NOTE 35
► SEE NOTE 39
Judgments have also been used in determining the lease term for lease contracts. ► SEE NOTE 11 ► SEE NOTE 20
03 DISCONTINUED OPERATIONS
DESCRIPTION
On February 11, 2021, the company decided to initiate a formal process aimed at divesting Reebok, which
was completed with signing of a sales agreement with Authentic Brands Group LLC on August 12, 2021.
Due to the concrete plans to divest Reebok and the approval by the relevant committees, the Reebok
operating business has been reported as discontinued operations and classified as a disposal group held
for sale since the resolution.
The Reebok business was sold on 28 February 2022 with effect from 1 March 2022. The majority of the
purchase price was paid at closing, with the remainder comprising deferred and contingent consideration.
The fair value of earn-out components was determined using the discounted cash flow method and the
Monte Carlo method, respectively.
INFORMATION ON THE FINANCIAL PERFORMANCE

DISCONTINUED OPERATION REEBOK
Full year Full year

€ in millions 2022 2021
Net sales 353 1,767
Expenses (366) (918)
(Loss)/gain from operating activities before taxes (14) 849
Income taxes 248 (171)
Gain from operating activities, net of tax 235 678
Gain from the sale of discontinued operations 522 –
Other loss from revaluation of contingent consideration receivable (20) –
Transaction costs (51) (30)
Income taxes (308) 6
Gain/(loss) from the sale of discontinued operations, net of tax 143 (24)
Gain from discontinued operations, net of tax 378 654
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The profit from discontinued operations for 2022 in the amount of € 384 million (2021: profit of
€ 666 million) is fully attributable to the shareholders of adidas AG. In addition to Reebok, the 2022 result
from discontinued operations also includes a gain of € 6 million (2021: € 12 million) related to divestments
from prior years.
The total tax benefit related to discontinued operations is € 248 million (2021: tax expense of
€ 168 million). The amount of € 248 million breaks down as follows: a gain from the release of a deferred
tax liability of € 308 million is included in the gain from the sale of discontinued operations of
€ 522 million. The taxable profit from the sale of discontinued operations leads to a tax expense of
€ 308 million. The tax benefit of € 248 million includes a tax benefit resulting from restructuring measures
related to discontinued operations.
As part of the divestiture of the Reebok brand, agreements were concluded for a limited period of time for
the purchase and distribution of Reebok products in certain markets. In this context, adidas is acting as an
agent in accordance with IFRS 15.
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ASSETS AND LIABILITIES HELD FOR SALE

The following assets and liabilities have been classified as a disposal group held for sale as at
December 31, 2021:
GROUP OF ASSETS AND LIABILITIES
Assets classified as held for sale € in millions Dec. 31, 2021

Accounts receivable 82
Inventories 300
Other current financial assets 14
Other current assets 15
Total current assets 411
Long-term financial assets 11
Property, plant, and equipment 84
Right-of-use assets 102
Goodwill 28
Trademark Reebok 1,368
Deferred tax assets 26
Other non-current financial assets 3
Total non-current assets 1,622
Total assets 2,033
Liabilities classified as held for sale € in millions Dec. 31, 2021

Accounts payable 35
Current lease liabilities 33
Other current provisions 33
Current accrued liabilities 55
Other current financial liabilities 7
Other current liabilities 6
Total current liabilities 169
Non-current lease liabilities 114
Pensions and similar obligations 2
Deferred tax liabilities 304
Other non-current provisions 4
Non-current accrued liabilities 0
Other non-current financial liabilities 0
Other non-current liabilities 1
Total non-current liabilities 425
Total liabilities 594
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04 SALE OF THE REEBOK BUSINESS

The divestiture of the Reebok business was completed on February 28, 2022, with effect from March 1,
2022. The total purchase price amounted to € 1,686 million consisting of € 1,165 million immediate
payment, earn-out components in an amount of € 247 million, and deferred consideration in an amount of
€ 274 million. The assets and liabilities, which were reported as assets/liabilities held for sale since
February 2021, due to the concrete plans to sell the business, were consequently derecognized from the
consolidated statement of financial position as at February 28, 2022.
DETAILS OF THE SALE OF THE REEBOK BUSINESS
€ in millions February 28, 2022
Consideration received or receivable:

Cash 1,165
Fair value of contingent and deferred consideration 521
Total disposal consideration 1,686
Carrying amount of net assets sold (1,392)
Gain on sale before income tax and reclassification of foreign currency translation reserve 294
Reclassification of foreign currency translation reserve 228
Gain on sale before income tax 522
Income tax expense on gain (343)
Gain on sale after income tax 179
An additional payment of up to € 500 million will be due in case the Reebok business meet certain
performance criteria during the period from March 1, 2022 to December 31, 2031. At the time of the sale,
the fair value of the consideration was determined to be € 247 million. It has been recognized as a
financial asset at fair value through profit or loss.
At the end of the fiscal year 2022, the fair value was re-estimated to be € 227 million. The loss of
€ 20 million is presented in discontinued operations net of related income tax.
Additionally, as contemplated in the sale agreement relating to the Reebok business, the purchase is
subject to deferred considerations for inventory and contractually specified items, which amount to
€ 274 million.
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The carrying amounts of assets and liabilities as at the date of sale were:
DISPOSED ASSETS AND LIABILITIES OF THE REEBOK BUSINESS
€ in millions February 28, 2022

Cash and cash equivalents 1
Accounts receivable 97
Inventories 298
Other current financial assets 2
Other current assets 4
Total current assets 403
Property, plant, and equipment 62
Right-of-use assets 125
Goodwill 28
Trademark Reebok 1,383
Other intangible assets 0
Total non-current assets 1,598
Total assets 2,001
Accounts payable 50
Current lease liabilities 32
Other current provisions 28
Current accrued liabilities 73
Other current liabilities 4
Total current liabilities 187
Non-current lease liabilities 111
Deferred tax liabilities 308
Other non-current provisions 3
Total non-current liabilities 422
Total liabilities 609
Net assets 1,392
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NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

05 CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash held by banks, cash on hand, and short-term deposits.
Short-term deposits are only shown as cash and cash equivalents if they are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
The credit risk of cash and cash equivalents measured at amortized cost is insignificant due to their short-
term maturity, counterparties’ investment grade credit ratings, and established exposure limits.
Therefore, adidas does not recognize any credit impairment losses for these financial assets.
Cash and cash equivalents includes € 155 million and € 214 million as of December 31, 2022 and 2021,
respectively, held by subsidiaries that were subject to foreign exchange control (e.g. Russia, Argentina) or
other legal restriction and hence were not at anytime available for general use by adidas AG or other
subsidiaries.
Further information about cash and cash equivalents is presented in these Notes. ► SEE NOTE 29
06 ACCOUNTS RECEIVABLE
Accounts receivable consist mainly of the currencies US dollar, euro, and Chinese renminbi and are as
follows:
ACCOUNTS RECEIVABLE € IN MILLIONS
Individual
loss
Collective loss allowance allowance Total
Past due
Not yet 31 – 90
due days Past due > 90 days
Not Not Not
credit- credit- credit- Credit- Credit-
impaired impaired impaired impaired impaired
Dec. 31, 2022

Accounts receivable, gross 2,073 428 60 63 135 2,759
Weighted average loss rate 1.5% 6.2% 22.0% 42.8% 98.2% 8.3%
Loss allowance (31) (26) (13) (27) (133) (230)
Accounts receivable, net 2,042 402 47 36 2 2,529
Dec. 31, 2021

Accounts receivable, gross 1,900 277 15 40 150 2,383
Weighted average loss rate 0.9% 5.1% 42.5% 65.4% 96.1% 8.7%
Loss allowance (17) (14) (6) (26) (145) (208)
Accounts receivable, net 1,884 263 8 14 6 2,175
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MOVEMENT IN LOSS ALLOWANCES FOR ACCOUNTS RECEIVABLE € IN MILLIONS
2022 2021
Loss allowances at January 1 208 267
Net remeasurement of loss allowances 33 (61)
Write-offs charged against the loss allowance accounts (12) (3)
Other changes 1 (1)
Loss allowances at December 31 230 208
As at December 31, 2022, the loss allowance for not credit-impaired accounts receivable in the amount of
€ 204 million and credit-impaired accounts receivable in the amount of € 1 million was not recognized as
adidas holds credit enhancement instruments, mainly in the form of credit insurance and bank
guarantees, which mitigate the credit risk of those financial assets.
There are no material balances of accounts receivable written off but subject to enforcement activity.
As of December 31, 2022, accounts receivable amounting to € 112 million (2021: € 99 million) were
derecognized in connection with factoring agreements.
Further information about credit risks is contained in these Notes. ► SEE NOTE 29
07 OTHER CURRENT FINANCIAL ASSETS

Other current financial assets consist of the following:
OTHER CURRENT FINANCIAL ASSETS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Currency options 10 21
Forward exchange contracts 222 236
Suppliers with debit balances 47 41
Revaluation of total return swap – 16
Security deposits 46 48
Receivables from credit cards and similar receivables 201 172
Promissory notes – 12
Receivables from retail business 79 91
Other investments 78 71
Deferred consideration of Reebok sale 241 –
Sundry 114 46
Other current financial assets, gross 1,038 754
Less: accumulated allowances (24) (8)
Other current financial assets, net 1,014 745
Further information about currency options, forward exchange contracts and the deferred consideration of
the Reebok sale is contained in these Notes. ► SEE NOTE 04 ► SEE NOTE 29
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08 INVENTORIES
Inventories by major classification are as follows:
INVENTORIES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Allowance Allowance
for for
Gross obsoles- Gross obsoles-
value cence Net value value cence Net value
Merchandise and finished
4,522 (225) 4,297 2,596 (149) 2,446
goods on hand
Goods in transit 1,667 – 1,667 1,556 – 1,556
Raw materials 9 – 9 7 – 7
Work in progress – – – 0 – 0
Inventories 6,198 (225) 5,973 4,159 (149) 4,009
Goods in transit mainly relate to shipments of finished goods and merchandise from suppliers in Asia to
subsidiaries in Europe, North America, Asia, and Latin America.
Expenses from write-down on inventories amounted to € 137 million in 2022 (2021: € 32 million).
As of December 31, 2022, inventories include Yeezy products in the amount of approximately € 0.4 billion.
Based on management’s assessment, the net realizable value of these products is above the recognized
cost, so that these costs are assessed to be recoverable as of the balance sheet date.
09 OTHER CURRENT ASSETS

Other current assets consist of the following:
OTHER CURRENT ASSETS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Prepaid expenses 250 270
Return assets 338 294
Tax receivables other than income taxes 632 430
Contract assets 15 15
Sundry 90 58
Other current assets, gross 1,323 1,066
Less: accumulated allowances (8) (4)
Other current assets, net 1,316 1,062
Prepaid expenses mainly relate to promotion and service contracts. The increase in the line item ‘Tax
receivables other than income taxes’ relates mainly to value-added tax.
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10 PROPERTY, PLANT, AND EQUIPMENT

The following table presents a reconciliation of the carrying amount of property, plant, and equipment:
PROPERTY, PLANT, AND EQUIPMENT € IN MILLIONS
Technical Other
equipment equipment, Property,
Land and and furniture, and Construction plant, and
buildings machinery fixtures in progress equipment
Acquisition cost
January 1, 2021 1,852 416 1,800 258 4,326
Additions 94 19 197 183 494
Disposals (47) (7) (231) (1) (285)
Transfers 180 32 30 (243) (1)
Transfers to assets held for
(67) (8) (79) (2) (157)
sale
Currency translation
80 21 76 17 195
differences
December 31, 2021/
2,093 473 1,794 212 4,571
January 1, 2022
Additions 125 17 232 131 504
Disposals (42) (13) (161) (4) (218)
Transfers 72 (9) 33 (108) (12)
Decrease in companies
(3) (1) (2) 1 (4)
consolidated
45 13 9 (1) 66
differences
December 31, 2022 2,290 480 1,906 230 4,907
Accumulated depreciation
and impairment
January 1, 2021 620 230 1,319 – 2,169
Depreciation 127 44 250 – 421
Impairment losses 1 – 3 0 4
Reversals of impairment
(1) (0) (8) – (9)
losses
Disposals (38) (6) (219) 0 (263)
Transfers 1 – (1) – (0)
Transfers to assets held for
(37) (7) (69) (0) (113)
sale
32 14 61 0 107
differences
December 31, 2021/
704 276 1,336 0 2,316
January 1, 2022
Depreciation 139 47 242 – 429
Impairment losses 33 6 27 – 66
Reversals of impairment
(1) (0) (2) – (3)
losses
Disposals (32) (12) (150) (0) (194)
Transfers (0) (0) 0 – (0)
Decrease in companies
(3) (1) (2) 0 (6)
consolidated
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PROPERTY, PLANT, AND EQUIPMENT € IN MILLIONS
Technical Other
equipment equipment, Property,
Land and and furniture, and Construction plant, and
buildings machinery fixtures in progress equipment
9 8 5 (0) 21
differences
December 31, 2022 849 324 1,455 0 2,628
Net carrying amount

January 1, 2021 1,231 185 482 258 2,157
December 31, 2021/
1,389 197 458 212 2,256
January 1, 2022
December 31, 2022 1,442 156 450 230 2,279
As a general principle, it is regularly assessed whether there are any indications that property, plant, and
equipment might be impaired.
Irrespective of the existence of such indications, furniture and fixtures in adidas’ own retail stores are
tested annually for impairment, whereby the recoverable amount, as part of determining the profitability of
adidas’ own retail stores, is calculated using the ‘discounted cash flow method.’
Impairment losses recognized in 2022 mainly relate to the company’s own retail activities and property,
plant, and equipment of Russia and Ukraine, for which, contrary to initial expectations, no sufficient future
economic benefit is expected. This Notes provide further information on the impairment losses. ► SEE NOTE 11
Further information on total depreciation and amortization expenses, impairment losses, and reversals of
impairment losses is provided in these Notes. ► SEE NOTE 32
11 RIGHT-OF-USE ASSETS
The company recognized right-of-use assets in an amount of € 2.7 billion (2021: € 2.6 billion). The
following table presents a reconciliation of the carrying amount of right-of-use assets:
RIGHT-OF-USE ASSETS € IN MILLIONS
Technical Other
equipment equipment,
Land and and furniture, and Right-of-use
buildings machinery fixtures assets
January 1, 2022 2,493 52 24 2,569
Additions 853 10 28 892
Disposals (68) – – (67)
Depreciation (639) (32) (19) (690)
Impairment losses (60) (60)
Reversal of impairment losses 1 – – 1
Currency translation differences 18 0 – 19
Other 3 – – 3
December 31, 2022 2,600 31 34 2,665
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RIGHT-OF-USE ASSETS € IN MILLIONS
Technical Other
equipment equipment,
Land and and furniture, and Right-of-use
buildings machinery fixtures assets
January 1, 2021 2,317 88 25 2,430
Additions 500 2 19 521
Disposals – – – –
Transfer to assets held for sale (94) – (1) (94)
Depreciation (563) (42) (20) (625)
Impairment losses (3) – – (3)
Reversal of impairment losses 25 – – 25
Currency translation differences 89 0 0 89
Net change due to remeasurements 222 4 (0) 226
December 31, 2021 2,493 52 24 2,569
As a general principle, it is regularly assessed whether there are any indications that right-of-use assets
might be impaired. Irrespective of the existence of such indications, right-of-use assets in adidas’ own
retail stores are tested annually for impairment, whereby the recoverable amount, as part of determining
the profitability of the adidas’ own retail stores, is calculated using the ‘discounted cash flow method.’
Impairment losses for right-of-use assets recognized in 2022 mainly relate to the company’s own retail
activities and right-of-use assets in Russia and Ukraine, for which, contrary to expectations based in 2021,
there will be a lower future economic benefit.
In 2022, impairment losses of € 126 million were recognized for non-current assets (property, plant, and
equipment, right-of-use assets). Thereof € 20 million are related to the company’s own retail activities and
are mainly attributable to EMEA with € 13 million; Asia-Pacific with € 5 million; and Greater China with
€ 3 million. Discount rates between 8.6% and 15.2% were used to calculate the impairment for the value in
use. The recoverable amounts of adidas´own retail stores break down into Asia-Pacific at € 176 million,
EMEA at € 80 million, North America at € 30 million, Greater China at € 28 million, other businesses at
€ 5 million and Latin America at € 1 million. Due to the conflict between Russia and Ukraine and the
decision to permanently wind down the business activities in Russia in 2022, impairment losses of
€ 94 million were recognized for both countries mentioned. These mainly include the impairment of the
warehouse in Russia, which was impaired by € 31 million to its fair value of € 29 million based on an
external appraisal. The impairment losses were recognized in the other operating expenses.
The income from sub-leasing of right-of-use assets recognized in the consolidated income statement in
2022 amounts to € 3 million (2021: € 3 million).
Further information on total depreciation and amortization expenses, impairment losses and reversals of
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12 GOODWILL
The following table presents a reconciliation of the carrying amount of goodwill:
GOODWILL € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Goodwill, gross 1,680 1,630
Less: accumulated impairment losses (420) (402)
Goodwill, net 1,260 1,228
adidas determines whether goodwill impairment is necessary at least on an annual basis. The impairment
test for goodwill is performed based on groups of cash-generating units that represent the lowest level
within the company at which goodwill is monitored for internal management purposes. This requires an
estimation of the recoverable amount of the groups of cash-generating units to which the goodwill is
allocated. The recoverable amount of a group of cash-generating units is determined based on its value in
use. Estimating the value in use requires adidas to make an estimate of the expected future cash flows
from the groups of cash-generating units and also to choose a suitable discount rate to calculate the
present value of those cash flows.
This calculation uses cash flow projections based on the financial planning covering a four-year period in
total. The planning is based on long-term expectations of the company and reflects an average annual
mid-single sales increase with varying forecast growth prospects for the different groups of cash-
generating units. Furthermore, adidas expects the operating margin to improve to a level of low double-
digit profitability for the company by 2026, primarily driven by an improvement in gross margin, as well as
lower operating expenses as a percentage of sales. The planning for capital expenditure and working
capital is primarily based on past experience. The planning for future tax payments is based on current
statutory corporate tax rates of the individual groups of cash-generating units. Cash flows beyond this
four-year period are extrapolated using steady growth rates of 1.7% (2021: 1.7%). According to the
company’s expectations, these growth rates do not exceed the long-term average growth rate of the
business sector in which the respective group of cash-generating units operates.
Discount rates are based on a weighted average cost of capital calculation considering a five-year average
market-weighted debt/equity structure and financing costs referencing major competitors for the
respective group of cash-generating units. The discount rates used are after-tax rates and reflect the
specific equity and country risk of the respective group of cash-generating units.
The groups of cash-generating units are defined as the regional markets that are responsible for the
distribution of the adidas brands. The regional markets are Europe, Middle East and Africa (EMEA), North
America, Greater China, Asia-Pacific, and Latin America. The number of groups of cash-generating units
amounted to a total of five at the end of 2022 and 2021, respectively.
The goodwill impairment tests revealed no need for goodwill impairment for the years ending
December 31, 2022 and 2021.
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The carrying amounts of acquired goodwill allocated to the respective groups of cash-generating units and
the respective discount rates applied to the cash flow projections are as follows:
ALLOCATION OF GOODWILL
Goodwill (€ in millions) Discount rate (after taxes)

Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021
EMEA 720 700 12.0% 8.2%
North America 77 77 9.8% 7.3%
Greater China 299 290 10.7% 7.9%
Asia-Pacific 164 161 10.8% 7.9%
Total 1,260 1,228
A change in the discount rate by up to approximately 0.5 percentage points or a reduction of planned free
cash inflows by up to approximately 6.5% would not result in any impairment requirement of the cash
generating unit North America.
Among the remaining cash generating units, neither a change in the discount rate by up to approximately
6 percentage points, nor a reduction of planned free cash inflows by up to approximately 40% would result
in any impairment requirement.
Future changes in expected cash flows and discount rates may lead to impairments of the reported
goodwill in the future.
The majority of goodwill is denominated in US dollars. The effect of currency translation is as follows:
RECONCILIATION OF GOODWILL, NET € IN MILLIONS
North Greater
EMEA America China Asia-Pacific Total
December 31, 2021 700 77 290 161 1,228
20 (0) 9 3 32
differences
December 31, 2022 720 77 299 164 1,260
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13 OTHER INTANGIBLE ASSETS

Other intangible assets consist of the following:
OTHER INTANGIBLE ASSETS € IN MILLIONS
Other
intangible
assets
Acquisition cost
January 1, 2021 2,403
Additions 173
Disposals (73)
Transfers 1
Transfers to assets held for sale (1,376)
Currency translation differences 128
December 31, 2021/January 1, 2022 1,256
Additions 191
Disposals (15)
Transfers 15
Decrease in companies consolidated (35)
December 31, 2022 1,425
Accumulated amortization and impairment

January 1, 2021 1,401
Amortization 96
Disposals (73)
Transfers to assets held for sale (544)
December 31, 2021/January 1, 2022 903
Amortization 102
Impairment losses 28
Disposals (14)
Transfers 3
Decrease in companies consolidated (35)
December 31, 2022 996
Net carrying amount

January 1, 2021 1,001
December 31, 2021/January 1, 2022 352
December 31, 2022 429
Trademark impairment losses of € 16 million were recognized in 2022 (2021: € 0 million). The impairment
loss is due to the integration of the runtastic trademark into adidas, and the net carrying amount of the
trademark runtastic was fully impaired at December 31, 2022, accordingly. All other intangible assets have
definite useful lives.
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Further information on total depreciation and amortization expenses, impairment losses, and reversals of
14 LONG-TERM FINANCIAL ASSETS

Long-term financial assets primarily include an 8.33% investment in FC Bayern München AG (2021: 8.33%)
of € 87 million (2021: € 87 million). This investment is classified as fair value through profit or loss and is
recorded at fair value. This equity security does not have a quoted market price in an active market.
Therefore, existing contractual arrangements are used in order to calculate the fair value as at
December 31, 2022 and 2021.
Other equity investments include minority shareholdings. There is currently no intention to sell these
shares. Other minority shareholdings include an increase of the fair value in an amount of € 1 million in
2022 (2021: € 1 million).
The line item ‘Other investments’ comprises investments that are mainly invested in insurance products,
which are measured at fair value, and securities for long-term variable compensation components. Other
investments include an increase of the fair value in an amount of € 1 million in 2022 (2021: € 0 million).
LONG-TERM FINANCIAL ASSETS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Investment in FC Bayern München AG 87 87
Other equity investments 88 83
Other investments 125 121
Loans 0 0
Long-term financial assets 301 290
15 OTHER NON-CURRENT FINANCIAL ASSETS

Other non-current financial assets consist of the following:
OTHER NON-CURRENT FINANCIAL ASSETS € IN MILLIONS
Dec. 31. 2022 Dec. 31. 2021

Currency options – 12
Options – 31
Security deposits 80 91
Earn-out components 227 –
Sundry 26 17
Other non-current financial assets 336 160
Options are related to the hedging of the equity-neutral convertible bond that was issued on September 5,
2018.
Further information about currency options and forward exchange contracts is contained in these Notes.
► SEE NOTE 29
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Further information about earn-out components is provided in these Notes. ► SEE NOTE 04 ► SEE NOTE 29
16 OTHER NON-CURRENT ASSETS

Other non-current assets consist of the following:
OTHER NON-CURRENT ASSETS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Prepaid expenses 75 74
Sundry 2 0
Other non-current assets 76 74
Prepaid expenses mainly relate to long-term promotion contracts. ► SEE NOTE 39
17 BORROWINGS AND CREDIT LINES

Borrowings are denominated in a variety of currencies in which adidas conducts its business. Whereas the
largest portion of effective gross borrowings (before liquidity swaps for cash management purposes) as at
December 31, 2022, are mainly denominated in euros (2022: 100%; 2021: 100%).
The weighted average interest rate on the Group’s gross borrowings increased to 0.8% in 2022
(2021: 0.7%).
As at December 31, 2022, adidas had cash credit lines and other long-term financing arrangements
totaling € 7.5 billion (2021: € 6.6 billion); thereof unused credit lines accounted for € 4.0 billion
(2021: € 4.1 billion). In addition, as at December 31, 2022, adidas had separate lines for the issuance of
letters of credit and guarantees in an amount of approximately € 0.5 billion (2021: € 0.6 billion).
In November 2020, adidas entered into a new syndicated credit facility agreement with twelve banks
totaling € 1.5 billion. The credit facility agreement was subsequently amended in October 2021 and in
November 2022. The amended and restated credit facility with eleven partner banks has a size of
€ 2.0 billion and will run until November 2027. It can be drawn in euros and US dollars. The interest
bearing is based on a defined margin on a reference rate (,€STRʻ or ,EURIBORʻ for euros).
The amounts reported as gross borrowings represent outstanding borrowings under the following
arrangements with aggregated expiration dates as follows:
GROSS BORROWINGS AS AT DECEMBER 31, 2022 € IN MILLIONS
Between 1 Between 3 More than

Up to 1 year and 3 years and 5 years 5 years Total
Bank borrowings incl.
29 37 26 – 92
commercial paper
Eurobond – 998 398 1,487 2,883
Equity-neutral convertible
498 – – – 498
bond
Total 527 1,035 424 1,487 3,473
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GROSS BORROWINGS AS AT DECEMBER 31, 2021 € IN MILLIONS
Between 1 Between 3 More than

Up to 1 year and 3 years and 5 years 5 years Total
Bank borrowings incl.
29 38 37 7 111
commercial paper
Eurobond – 500 399 991 1,890
Equity-neutral convertible
– 494 – – 494
bond
Total 29 1,032 436 998 2,495
The eurobond issued in October 2014 with a term of twelve years and a volume of € 400 million has a
coupon of 2.25% and matures in October 2026. The eurobond was issued with a denomination of € 1,000.
The bond was issued with a spread of 100 basis points over the corresponding average euro swap rate,
with the issue price being 99.357%.
In 2020, adidas issued three rated eurobonds with a size of € 500 million and denominations of € 100,000
each. The four-year eurobond maturing in September 2024, with a coupon of 0.00% and the 15-year
eurobond maturing in September 2035, with a coupon of 0.625% were issued in September 2020. These
bonds were priced with a spread of 33 basis points and 63 basis points, respectively, above the
corresponding euro mid-swap rate. The issue price was fixed at 100.321% and 99.360%, respectively. In
adidas’ inaugural sustainability bond placement in September 2020, an eight-year eurobond was issued
with a coupon of 0.00% maturing in October 2028. The sustainability bond was priced with a spread of 40
basis points above the corresponding euro mid-swap rate. The issue price was fixed at 99.410%. Proceeds
from the issuance will be used in accordance with adidas’ sustainability bond framework. Eligible
sustainable projects include investments into sustainable materials and processes, as well as projects
with a positive impact on the community. More specifically, this includes the sourcing of recycled
materials for sustainably manufactured products, investments into renewable energy production and
energy-efficient buildings as well as various initiatives aimed at creating lasting change in
underrepresented communities.
adidas AG issued in November 2022 two eurobonds with a size of € 500 million each. The three-year
eurobond maturing in November 2025 bears a coupon of 3.00% and was issued at 99.901% issue price. The
seven-year eurobond maturing in November 2029 bears a coupon of 3.125% and was issued at 99.272%
issue price. These bonds were priced with a spread of 20 and 45 basis points, respectively, above the
corresponding euro mid-swap rate. Proceeds from the offering will be used for general corporate
purposes including the refinancing of upcoming maturities.
In September 2018, adidas AG issued a € 500 million equity-neutral convertible bond with a coupon of
0.05% due in September 2023. The issue price was fixed at 104% of the notional amount, corresponding to
an annual yield to maturity of negative 0.73%. The initial conversion price was determined to be € 291.84 a
conversion premium of 40% over the reference share price of € 208.46. The economic risk exposure of
share price movements was hedged by purchased call options on ordinary adidas AG shares.
Further details on future cash outflows are provided in these Notes. ► SEE NOTE 29
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18 OTHER CURRENT FINANCIAL LIABILITIES

Other current financial liabilities consist of the following:
OTHER CURRENT FINANCIAL LIABILITIES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Customer with credit balances 68 70
Revaluation of total return swap 46 –
Embedded derivatives 0 –
Sundry 164 110
Other current financial liabilities 424 363
The line item ‘Sundry’ mainly relates to payables due to customs authorities.
Further information about forward exchange contracts is contained in these Notes. ► SEE NOTE 29
19 OTHER PROVISIONS
Other provisions consist of the following:
OTHER PROVISIONS € IN MILLIONS

Decrease
in com-
panies Currency Thereof:
Jan. 1, consoli- translation Dec. 31, non-
2022 Additions Usage Reversals dated differences 2022 current
Marketing 22 25 (15) (4) (2) 1 26 –
Personnel 284 142 (169) (19) (20) 4 222 32
Returns and warranty 709 772 (607) (44) (6) (10) 815 –
Taxes, other than income taxes 54 28 (7) (2) (2) 0 71 –
Customs 193 91 (10) (2) – (4) 267 –
Sundry 345 91 (117) (43) (2) 2 275 56
Other provisions 1,607 1,148 (926) (114) (32) (6) 1,677 88
Marketing provisions mainly consist of provisions for promotion contracts, which are comprised of
obligations to clubs and athletes.
Provisions for personnel mainly consist of provisions for short- and long-term variable compensation
components as well as of provisions for social plans relating to restructuring measures.
Provisions for returns and warranty primarily arise due to the obligation of fulfilling customer claims with
regard to the return of products sold by adidas. The amount of the provision follows the historical
development of returns and warranty as well as current agreements.
Provisions for taxes other than income taxes mainly relate to value added tax, real estate tax, and motor
vehicle tax.
Sundry provisions mainly include provisions for onerous contracts as well as for dismantling and
restoration costs.
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Non-current provisions mainly consist of provisions for long-term variable compensation components with
a time frame of three to four years, discounted with country-specific interest rates.
Management follows past experience from similar transactions when assessing the recognition and the
measurement of provisions; in particular, external legal opinions are considered for provisions for
customs risks and for litigation and other legal risks. All evidence from events until the preparation of the
consolidated financial statements is taken into account.
Due to the armed conflict between Russia and Ukraine and the decision to permanently wind down
business activities in Russia in 2022, provisions of € 30 million have been recognized for personnel, taxes,
other than income taxes and sundry provisions.
20 LEASE LIABILITIES
The company recognized lease liabilities in an amount of € 3.0 billion (2021: € 2.8 billion).
LEASE LIABILITIES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Land and buildings 2,918 2,756
Technical equipment and machinery 33 56
Other equipment, furniture and fixtures 35 25
Lease liabilities 2,986 2,836
The contractual payments for lease liabilities held by adidas as at December 31, 2022, in an amount of
€ 3.4 billion (2021: € 3.1 billion), mature as follows:
CONTRACTUAL PAYMENTS FOR LEASE LIABILITIES
Dec. 31, 2022 Dec. 31, 2021

Within 1 year 715 635
Between 1 and 5 years 1,760 1,580
After 5 years 901 842
Total 3,376 3,057
Interest recognized on lease liabilities in 2022 amounted to € 83 million (2021: € 66 million).
Expenses from leases classified as short-term, low-value, or variable are excluded from the
measurement of the lease liability. Further information on total expenses relating to short-term, low-
value, and variable leases is provided in these Notes. ► SEE NOTE 32
In 2022, the total cash outflows for leases, including the above-mentioned leases not included in the
calculation of the lease liability, amounted to € 846 million (2021: € 789 million).
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21 ACCRUED LIABILITIES
Accrued liabilities consist of the following:
ACCRUED LIABILITIES € IN MILLIONS
Thereof: Thereof:
Dec. 31, 2022 non-current Dec. 31, 2021 non-current
Goods and services not yet invoiced 994 4 1,002 2
Marketing and sales 1,124 3 1,205 4
Personnel 258 0 453 0
Sundry 42 – 32 1
Accrued liabilities 2,419 7 2,692 8
Accrued liabilities for marketing and sales mainly consist of accruals for distribution, such as discounts,
rebates, and sales commissions.
Accrued liabilities for personnel mainly consist of accruals for outstanding salary payments, such as
bonuses and overtime, as well as outstanding vacation.
Sundry accrued liabilities include accruals for interest.
22 OTHER CURRENT LIABILITIES

Other current liabilities consist of the following:
OTHER CURRENT LIABILITIES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Tax liabilities other than income taxes 248 243
Liabilities due to personnel 52 55
Liabilities due to social security 33 26
Deferred income 77 83
Contract liabilities 3 3
Sundry 39 25
Other current liabilities 452 434
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23 OTHER NON-CURRENT FINANCIAL LIABILITIES

Other non-current financial liabilities consist of the following:
OTHER NON-CURRENT FINANCIAL LIABILITIES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Currency options 1 –
Revaluation of total return swap 37 15
Embedded derivatives – 31
Other non-current financial liabilities 44 51
Further information about forward exchange contracts is provided in these Notes. ► SEE NOTE 29
24 PENSIONS AND SIMILAR OBLIGATIONS

adidas has recognized post-employment benefit obligations arising from defined benefit plans. The
benefits are provided pursuant to the legal, fiscal, and economic conditions in each respective country and
mainly depend on the employees’ years of service and remuneration.
PENSIONS AND SIMILAR OBLIGATIONS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Liability arising from defined benefit pension plans 114 266
Similar obligations 1 1
Pensions and similar obligations 115 267
The liability arising from defined benefit pension plans consist on the one hand of assets from defined
benefit pension plans in an amount of € 4 million (2021: € 1 million) and provisions for pensions and
similar obligations in an amount of € 118 million (2021: € 267 million).
DEFINED CONTRIBUTION PENSION PLANS

The total expense for defined contribution pension plans amounted to € 91 million in 2022
(2021: € 73 million).
DEFINED BENEFIT PENSION PLANS

Given the company’s diverse subsidiary structure, different defined benefit pension plans exist, comprising
a variety of post-employment benefit arrangements. The company’s major defined benefit pension plans
relate to adidas AG and its subsidiaries in the UK and South Korea. The defined benefit pension plans
generally provide payments in case of death, disability, or retirement to former employees and their
survivors. The obligations arising from defined benefit pension plans are partly covered by plan assets.
In Germany, adidas AG grants its employees contribution-based and final-salary-defined benefit pension
schemes, which provide employees with entitlements in the event of retirement, disability, and death.
German pension plans operate under the legal framework of the German Company Pensions Act
(‘Betriebsrentengesetz’) and under general German labor legislation. Active existing employees and new
entrants are entitled to benefits in accordance with the general company agreement ‘Core Benefits: adidas
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company pension plan.’ This is a pension plan with a basic employer contribution, possible salary
sacrifices, and additional matching contribution. Thus, the contributions to this pension plan are partly
paid by the employee and partly paid by the employer. The contributions are transferred into benefit
components. The benefits are paid out in the form of a pension, a lump sum, or installments. The pension
plans in Germany are financed using book reserves, a contractual trust arrangement (CTA) and, for certain
former members of the Executive Board of adidas AG, a pension fund (‘Pensionsfonds’) in combination
with a reinsured provident fund (‘Unterstützungskasse’).
The final salary defined benefit pension scheme in the UK is closed to new entrants and to future accrual.
The benefits are mainly paid out in the form of pensions. The scheme operates under UK trust law as well
as under the jurisdiction of the UK Pensions Regulator and therefore is subject to a minimum funding
requirement. The Trustee Board is responsible for setting the scheme’s funding objective, agreeing the
contributions with the company, and determining the investment strategy of the scheme.
In South Korea, adidas grants a final salary defined pension plan to certain employees. The benefits are
paid out in the form of a lump sum. The pension plan operates under the Employee Retirement Benefit
Security Act (ERSA). This regulation requires a minimum funding amounting to 100% of the present value
of the vested benefit obligation. The annual contribution includes at least the minimum amount in order to
meet the funding requirements.
BREAKDOWN OF THE PRESENT VALUE OF THE OBLIGATION ARISING FROM DEFINED BENEFIT PENSION PLANS IN THE MAJOR COUNTRIES
€ IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

South South
Germany UK Korea Germany UK Korea
Active members 200 – 15 303 – 16
Former employees with vested
131 31 – 184 63 –
rights
Pensioners 91 6 – 107 8 –
Total 422 37 15 594 71 16
The Group’s pension plans are subject to risks from changes in actuarial assumptions, such as the
discount rate, salary, and pension increase rates, and risks from changes in mortality. A lower discount
rate results in a higher defined benefit obligation and/or in higher contributions to the pension funds.
Lower than expected performance of the plan assets could lead to an increase in required contributions or
to a decline of the funded status.
The following tables analyze the defined benefit plans, plan assets, present values of the defined benefit
pension plans, expenses recognized in the consolidated income statement, actuarial assumptions, and
further information.
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AMOUNTS FOR DEFINED BENEFIT PENSION PLANS RECOGNIZED IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Present value of funded obligation from defined benefit pension plans 507 711
Fair value of plan assets (453) (502)
Funded status 54 209
Present value of unfunded obligation from defined benefit pension plans 55 57
Effect of asset ceiling in accordance with IAS 19.64 4 –
Net defined benefit liability 114 266
Thereof: liability 118 267
Thereof: adidas AG 55 201
Thereof: asset (4) (1)
Thereof: adidas AG – –
The determination of assets and liabilities for defined benefit plans is based upon actuarial valuations. In
particular, the present value of the defined benefit obligation is driven by financial variables (such as the
discount rates or future increases in salaries) and demographic variables (such as mortality and employee
turnover). The actuarial assumptions may differ significantly from the actual circumstances and could lead
to different cash flows.
WEIGHTED AVERAGE ACTUARIAL ASSUMPTIONS IN %
Dec. 31, 2022 Dec. 31, 2021

Discount rate 4.4 1.6
Expected rate of salary increases 4.0 3.6
Expected pension increases 2.1 1.8
BREAKDOWN OF THE ACTURIAL ASSUMPTIONS IN THE MAJOR COUNTRIES IN %
Dec. 31, 2022 Dec. 31, 2021

South South
Discount rate 4.2 5.0 5.6 1.4 1.8 2.4
Expected rate of salary increases – – 3.6 – – 3.6
Expected pension increases 2.2 2.2 – 1.8 2.4 –
The weighted average actuarial assumptions as at the balance sheet date are used to determine the
defined benefit liability at that date and the pension expense for the upcoming financial year.
The actuarial assumptions for withdrawal and mortality rates are based on statistical information available
in the various countries. In Germany, the Heubeck 2018 G mortality tables are used. In the UK,
assumptions are based on the S3 base tables with modified improvement of the life expectancy mortality
tables. In South Korea, the KIDI 2019 tables from the Korea Insurance Development Institute are used.
As in the previous year, the calculation of the pension liabilities in Germany is based on a discount rate
determined using the ‘Mercer Yield Curve (MYC)’ approach.
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Remeasurements, such as gains or losses arising from changes in the actuarial assumptions for defined
benefit pension plans or a return on the plan assets exceeding the interest income, are immediately
recognized outside the income statement as a change in other reserves in the consolidated statement of
comprehensive income.
PENSION EXPENSES FOR DEFINED BENEFIT PENSION PLANS € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Current service cost 41 43
Net interest expense 4 4
Thereof: interest cost 12 9
Thereof: interest income (8) (6)
Past service (credit)/cost (1) 1
Loss on plan settlements 0 0
Expenses for defined benefit pension plans (recognized in the consolidated
44 47
income statement)
Actuarial gains (243) (16)
Thereof: due to changes in financial assumptions (260) (22)
Thereof: due to changes in demographic assumptions 0 5
Thereof: due to experience adjustments 17 1
Loss/(return) on plan assets (not included in net interest income) 64 (38)
Change in asset ceiling (excluding interest cost) 4 –
Remeasurements for defined benefit pension plans (recognized as increase in
(175) (54)
other reserves in the consolidated statement of comprehensive income)
Total (131) (7)
Of the total pension expenses recorded in the consolidated income statement, an amount of € 29 million
(2021: € 34 million) relates to employees of adidas AG and € 3 million (2021: € 3 million) relates to
employees in South Korea. The pension expense is mainly recorded within other operating expenses. The
production-related part of the pension expenses is recognized within cost of sales.
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PRESENT VALUE OF THE DEFINED BENEFIT OBLIGATION € IN MILLIONS
2022 2021
Present value of the obligation from defined benefit pension plans
768 735
as at January 1
Current service cost 41 43
Interest cost 12 9
Contribution by plan participants 1 1
Pensions paid (17) (20)
Payments for plan settlements (1) (0)
Actuarial gains (243) (16)
Thereof: due to changes in financial assumptions (260) (22)
Thereof: due to changes in demographic assumptions – 5
Thereof: due to experience adjustments 17 1
Past service (credit)/cost (1) 1
Loss on plan settlements – 0
Business combinations/transfers/divestitures (2) 7
Present value of the obligation from defined benefit pension plans
562 768
as at December 31
Of the total actuarial gains recognized in equity, an amount of € 164 million (2021: € 56 million) relates to
pension schemes at adidas AG, € 2 million as a loss (2021: gain of € 4 million) to the UK and € 1 million
(2021: loss of € 1 million) to South Korea.
In the following table, the effects of reasonably conceivable changes in the actuarial assumptions on the
present value of the obligation from defined benefit pension plans are analyzed for Germany, the UK, and
South Korea. In addition, the average duration of the obligation is shown.
SENSITIVITY ANALYSIS OF THE OBLIGATION FROM DEFINED BENEFIT PENSION PLANS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

South South
Present value of the obligation from
422 37 15 594 71 16
defined benefit pension plans
Increase in the discount rate by
396 34 15 546 63 15
0.5%
Reduction in the discount rate by
450 40 16 648 80 16
0.5%
Average duration of the obligations
13 17 4 17 23 4
(in years)
Since many pension plans are closed to future accrual, the salary trend plays a minor role in determining
pension obligations. Due to the fact that with the introduction of the Core Benefits arrangement, German
pension plans are mainly paid as lump sums, the pension increase rate and the mortality assumption have
significantly less impact than the discount rate when calculating the pension obligations.
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FAIR VALUE OF PLAN ASSETS € IN MILLIONS
2022 2021
Fair value of plan assets as at January 1 503 458
Currency translation differences (2) 5
Pensions paid (4) (8)
Contributions by the employer 11 2
Contributions paid by plan participants 1 1
Interest income from plan assets 8 6
(Loss)/return on plan assets (not included in net interest income) (64) 38
Business combinations / transfers / divestitures – 2
Fair value of plan assets as at December 31 453 503
Approximately 94% (2021: 95%) of the total plan assets are allocated to plan assets in the three major
countries: Germany (2022: 82%, 2021: 78%), UK (2022: 8%, 2021: 14%), and South Korea (2022: 4%,
2021: 3%).
Part of the plan assets in Germany is held by a trustee under a Contractual Trust Arrangement (CTA) for
the purpose of funding the pension obligations of adidas AG and insolvency insurance with regard to part of
the pension obligations of adidas AG. The trustee is the registered association adidas Pension Trust e.V.
The investment committee of the adidas Pension Trust determines the investment strategy with the goal to
match the pension liabilities as far as possible and to generate a sustainable return. In 2022, no additional
employer funding contribution was transferred to the trustee. The plan assets in the registered
association are mainly invested in fixed income funds, equity funds and real estate. Another substantial
part of the plan assets in Germany is invested in insurance contracts via a pension fund and a provident
fund. For this portion, an insurance entity is responsible for the determination and the implementation of
the investment strategy.
In the UK, the plan assets are held in an external trust. In principle the investment strategy is aligned with
the structure of the pension obligations in these countries. In the rest of the world, the plan assets consist
predominantly of insurance contracts.
The expected total employer contributions for the 2023 financial year amounts to € 29 million. Thereof,
€ 23 million relate to benefits directly paid to pensioners by the subsidiaries and € 6 million to employer
contributions paid into the plan assets. In 2022, the actual loss on plan assets (including interest income)
was € 56 million (2021: return on plan assets of € 43 million).
COMPOSITION OF PLAN ASSETS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Cash and cash equivalents 26 27
Equity instruments 110 124
Bonds 129 126
Real estate 94 90
Pension plan reinsurance 46 57
Investment funds 35 71
Other assets 14 7
Fair value of plan assets 453 503
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All equities and bonds are traded freely and have a quoted market price in an active market.
At each balance sheet date, the company analyzes the over- or underfunding and, where appropriate,
adjusts the composition of plan assets.
25 OTHER NON-CURRENT LIABILITIES

Other non-current liabilities consist of the following:
OTHER NON-CURRENT LIABILITIES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Deferred income 6 7
Liabilities due to personnel – 2
Sundry 0 0
Other non-current liabilities 6 9
26 SHAREHOLDERS’ EQUITY
As at December 31, 2021, the nominal capital of adidas AG amounted to € 192,100,000 divided into
192,100,000 registered no-par-value shares and was fully paid in.
With legal effect as of November 28, 2022, the nominal capital was reduced from € 192,100,000 to
€ 180,000,000 by cancelation of 12,100,000 treasury shares. The change in the nominal capital due to the
cancelation of shares and the capital reduction was registered for declaratory entry in the commercial
register. The entry was made on February 16, 2023.
There were no other changes to the nominal capital. Thus, as at the balance sheet date, the nominal
capital of adidas AG amounted to € 180,000,000 divided into 180,000,000 registered no-par-value shares
and is fully paid in.
Each share grants one vote and is entitled to dividends starting from the commencement of the year in
which it was issued. Treasury shares held directly or indirectly are not entitled to dividend payment in
accordance with § 71b German Stock Corporation Act (Aktiengesetz – AktG). As at the balance sheet date,
adidas AG held 1,462,802 treasury shares, corresponding to a notional amount of € 1,462,802 in the
nominal capital and consequently to 0.81% of the nominal capital.
AUTHORIZED CAPITAL 2021/I AND 2021/II

The Executive Board of adidas AG did not utilize the existing amount of authorized capital of up to
€ 70 million in the 2022 financial year.
The authorized capital of adidas AG, which is set out in § 4 sections 2 and 3 of the Articles of Association as
at the balance sheet date, entitles the Executive Board, subject to Supervisory Board approval, to increase
the nominal capital based on the following authorizations:
Based on the authorization granted by resolution of the Annual General Meeting of May 12, 2021, until
August 6, 2026,
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─ by issuing new shares against contributions in cash once or several times by no more than
€ 50,000,000 altogether and, subject to Supervisory Board approval, to exclude residual amounts from
shareholders’ subscription rights (Authorized Capital 2021/I);
Based on the authorization granted by resolution of the Annual General Meeting of May 12, 2021, until
August 6, 2026,
─ by issuing new shares against contributions in kind and/or cash once or several times by no more than
€ 20,000,000 altogether (Authorized Capital 2021/II), and, subject to Supervisory Board approval, to
exclude residual amounts from shareholders’ subscription rights, to wholly or partly exclude
shareholders’ subscription rights when issuing shares against contributions in kind and to exclude
shareholders’ subscription rights when issuing shares against contributions in cash if the new shares
against contributions in cash are issued at a price not significantly below the stock market price of the
company’s shares already quoted on the stock exchange at the point in time when the issue price is
ultimately determined, which should be as close as possible to the placement of the shares; this
exclusion of subscription rights can also be associated with the listing of the company’s shares on a
foreign stock exchange.
The authorization to exclude subscription rights under this authorization, however, may only be used to
the extent that the pro-rata amount of the new shares in the nominal capital together with the pro-rata
amount in the nominal capital of other shares that have been issued by the company since
May 12, 2021, subject to the exclusion of subscription rights, on the basis of an authorized capital or
following a repurchase or for which subscription or conversion rights or subscription or conversion
obligations have been granted through the issuance of convertible bonds and/or bonds with warrants
while excluding subscription rights, does not exceed 10% of the nominal capital existing on the date of
the entry of this authorization with the commercial register or – if this amount is lower – on the
respective date on which the resolution on the utilization of the authorization is adopted. The previous
sentence does not apply to the exclusion of subscription rights for residual amounts. The Authorized
Capital 2021/II must not be used to issue shares within the scope of compensation or participation
programs for Executive Board members or employees or for members of the management bodies or
employees of affiliated companies.
CONTINGENT CAPITAL 2022

The following overview of the Contingent Capital is based on § 4 section 4 of the Articles of Association of
adidas AG as well as on the underlying resolution of the Annual General Meeting held on May 12, 2022.
The nominal capital is conditionally increased by up to € 12.5 million divided into not more than
12,500,000 no-par-value shares (Contingent Capital 2022). The contingent capital increase serves the
issuance of no-par-value shares when exercising option or conversion rights or fulfilling the respective
option and/or conversion obligations or when exercising the company’s right to choose to partially or in
total deliver registered no-par-value shares of the company instead of paying the due amount to the
holders or creditors of bonds issued by the company or a subordinated group company up to May 11, 2027,
on the basis of the authorization resolution adopted by the Annual General Meeting on May 12, 2022. The
new shares will be issued at the respective option or conversion price to be established in accordance with
the aforementioned authorization resolution. The contingent capital increase will be implemented only if
bonds are issued in accordance with the authorization resolution adopted by the Annual General Meeting
on May 12, 2022, (Agenda Item 7) and only to the extent that option or conversion rights are exercised or
the holders or creditors of bonds obligated to exercise the option or conversion obligation fulfill their
obligations to exercise the warrant or convert the bond, or to the extent that the company exercises its
rights to choose to deliver no-par-value shares in the company for the total amount or a partial amount
instead of payment of the amount due and insofar as no cash settlement, treasury shares or shares of
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another public-listed company are used to service these rights. The new shares carry dividend rights from
the commencement of the financial year in which the shares are issued. In the event that, at the time of
issuance of the new shares, no resolution on the appropriation of retained earnings for the financial year
directly preceding the year in which the shares are issued has been passed, the Executive Board is
authorized, to the extent legally permissible, to determine that the new shares will carry dividend rights
from the commencement of the financial year directly preceding the year in which the shares are issued.
Furthermore, the Executive Board is authorized to stipulate additional details concerning the
implementation of the contingent capital increase.
The Executive Board is authorized, subject to Supervisory Board approval, to exclude shareholders’
subscription rights to the bonds insofar as this is necessary for residual amounts and also insofar as and
to the extent that this is necessary for granting subscription rights to holders or creditors of bonds already
issued before, which they would be entitled to as shareholders upon exercising their option or conversion
rights or upon fulfilling their option and/or conversion obligations or upon exercising a right to delivery of
shares referring to shares of the company. Finally, the Executive Board is authorized, subject to
Supervisory Board approval, to also exclude shareholders’ subscription rights insofar as the bonds are
issued against contributions in cash and after the Executive Board has concluded, following an
examination in accordance with its legal duties, that the issue price of the bonds is not significantly below
the hypothetical market value computed using recognized, in particular, financial calculation methods and
the number of shares issued does not exceed 10% of the nominal capital, neither at the point of becoming
effective nor – in case this amount is lower – at the point of exercising the aforementioned authorization.
Shares which are issued or sold in accordance with § 186 section 3 sentence 4 AktG during the term of this
authorization until its utilization shall be attributed to the aforementioned limit of 10%. Furthermore,
shares that are to be issued or granted during the term of this authorization on the basis of a bond issued
with the exclusion of subscription rights in accordance with this provision utilizing another authorization
shall be attributed to the aforementioned limit of 10%. The total number of shares that are issued under
bonds based on this authorization with the exclusion of subscription rights and shares that are issued from
an authorized capital with the exclusion of subscription rights during the term of the authorization may not
exceed 10% of the nominal capital on the date of the entry of this authorization with the Commercial
Register.
In the period up until the balance sheet date, the Executive Board of adidas AG did not issue any bonds
based on the authorization granted on May 12, 2022, and consequently did not issue any shares from the
Contingent Capital 2022.
REPURCHASE AND USE OF TREASURY SHARES

The Annual General Meeting on May 12, 2021, granted the Executive Board an authorization to repurchase
adidas AG shares up to an amount totaling 10% of the nominal capital until May 11, 2026. The authorization
may be used by adidas AG but also by its subordinated Group companies or by third parties on account of
adidas AG or its subordinated Group companies or third parties assigned by adidas AG or one of its
subordinated Group companies.
Based on the above-mentioned authorization, the Executive Board of adidas AG commenced share
buyback programs on January 10, 2022, and March 14, 2022, respectively. adidas AG repurchased
4,156,558 shares between January 10, 2022, and February 22, 2022, including, in the first tranche of a
multi-year share buyback program (‘Share Buyback Program 2022–2025/I’) and 8,978,138 shares between
March 14, 2022 and October 10, 2022, including (‘Additional Share Buyback Program 2022’). In the year
under review, adidas AG repurchased a total of 13,134,696 adidas AG shares for a total price of
€ 2,499,999,677.77 (excluding incidental purchasing costs) and at an average price of € 190.34 per share.
This corresponded to an amount of € 13,134,696 in the nominal capital and consequently to an
approximate notional amount of 7.30% of the nominal capital. Further information on the adidas AG shares
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repurchased in the 2022 financial year can be taken from the table ‘Repurchase of adidas AG shares in the
2022 financial year.’
REPURCHASE OF ADIDAS AG SHARES IN THE 2022 FINANCIAL YEAR
Total price in € Average

(excluding purchase price Amount in the Amount in the
Number of incidental per share nominal capital nominal capital
Month shares purchasing costs) in € in € in %
January 2,205,504 542,638,920.85 246.04 2,205,504 1.23
February 1,951,054 457,360,944.65 234.42 1,951,054 1.08
March 1,174,111 247,959,569.74 211.19 1,174,111 0.65
April 1,545,759 315,334,832.60 204.00 1,545,759 0.86
May 667,619 118,151,634.37 176.97 667,619 0.37
June 1,573,502 271,623,667.15 172.62 1,573,502 0.87
July 626,573 103,634,201.78 165.40 626,573 0.35
August – – – – –
September 2,655,335 355,239,483.56 133.78 2,655,335 1.48
October 735,239 88,056,423.07 119.77 735,239 0.41
November – – – – –
December – – – – –
2022 financial
13,134,696 2,499,999,677.77 190.34 13,134,696 7.30
year total
The company may use the repurchased shares for all purposes admissible under the authorization
granted on May 12, 2021. adidas AG, however, plans to cancel the majority of the repurchased shares.
Consequently, in the 2022 financial year, 12,100,000 treasury shares were canceled as part of a simplified
capital reduction pursuant to § 237 section 3 no. 2 AktG.
In the 2022 financial year, a total of 41,763 treasury shares were used as consideration for, inter alia, the
transfer or licensing of industrial property rights and intangible property rights due to contractual
obligations. Using treasury shares while excluding subscription rights enabled adidas AG to acquire
industrial property rights and intangible property rights (or licenses) from the respective owners at
attractive conditions while preserving the company’s liquidity. Based on the share price at the time, the
41,763 treasury shares transferred had a value of altogether approx. € 11 million, corresponding to a
notional amount of € 41,763 in the nominal capital and consequently to approx. 0.02% of the nominal
capital.
Moreover, adidas AG used 35,276 treasury shares in the context of the employee stock purchase plan
while excluding subscription rights. Based on the share price at the time, the 35,276 treasury shares
transferred had a value of altogether € 7,943,033, corresponding to a notional amount of € 35,276 in the
nominal capital and consequently to approx. 0.02% of the nominal capital.
Therefore, taking into account the 505,145 shares held by adidas AG as at December 31, 2021, the shares
purchased within the share buyback programs and the shares used and canceled during the financial year,
this results in 1,462,802 treasury shares held as at the balance sheet date. ► SEE DISCLOSURES PURSUANT TO § 315A AND
§ 289A OF THE GERMAN COMMERCIAL CODE AND EXPLANATORY REPORT
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CHANGES IN THE PERCENTAGE OF VOTING RIGHTS

Pursuant to § 160 section 1 no. 8 AktG, information must be provided on the existence of shareholdings
that have been notified to adidas AG in accordance with § 33 section 1 or section 2 German Securities
Trading Act (Wertpapierhandelsgesetz – WpHG).
The table ‘Notified reportable shareholdings’ reflects reportable shareholdings in adidas AG as at the
balance sheet date that have each been notified to adidas AG. In each case, the details relate to the most
recent voting rights notification received by adidas AG from the parties obligated to notify. All voting rights
notifications disclosed by adidas AG in the year under review are available on the corporate website.
► ADIDAS-GROUP.COM/VOTING_RIGHTS_NOTIFICATIONS
NOTIFIED REPORTABLE SHAREHOLDINGS

Total of voting rights
Date of reaching, Notification obligations and Voting rights attached to shares
exceeding or Reporting attributions in accordance attached to Instruments and instruments
Notifying party falling below threshold with WpHG shares (in %) (in %) (in %)
BlackRock, Inc., §§ 34, 38 par. 1 no. 1,
December 29, 2022 5% 5.25 0.78 6.03
Wilmington, DE, USA1 38 par. 1 no. 2
The Goldman Sachs Group, §§ 34, 38 par. 1 no. 1,
December 16, 2022 5% 0.12 5.87 5.99
Inc., Wilmington, DE, USA1 38 par. 1 no. 2
The Capital Group
Companies, December 14, 2022 3% § 34 3.03 – 3.03
Inc., Los Angeles, USA
Elian Corporate Trustee
(Cayman) Limited, Camana
September 16, 2022 5% §§ 34, 38 par. 1 no. 2 3.12 3.33 6.46
Bay, Grand Cayman,
Cayman Islands1
Ségolène Gallienne1 April 20, 2021 5% § 34 6.84 – 6.84
Gérald Frère1 April 20, 2021 5% § 34 6.84 – 6.84
The Desmarais Family
Residuary Trust, Montreal, November 30, 2020 5% § 34 6.89 – 6.89
Canada1
1 Voluntary group notification due to threshold crossing on the subsidiary level.
The details on the percentage of shareholdings and voting rights may no longer be up to date.
CAPITAL MANAGEMENT
The company’s policy is to maintain a strong capital base so as to uphold investor, creditor, and market
confidence and to sustain future development of the business.
adidas seeks to maintain a balance between a higher return on equity that might be possible with higher
levels of borrowings and the advantages and security afforded by a sound capital position. The company
further aims to maintain adjusted net borrowings below two times EBITDA (Earnings before interests,
taxes, depreciation and amortization and impairment losses and reversals) over the long term. adidas
received strong first-time investment-grade ratings by both Standard & Poor’s and Moody’s in August
2020. Standard & Poor’s gave adidas an ‘A+’ rating, and Moody’s granted the company an ‘A2’ rating. The
initial outlook for both ratings was ‘stable’ as both rating agencies recognized the company’s strong credit
metrics, robust liquidity profile, and conservative financial policies. In November 2022, both Standard &
Poor’s and Moody’s revised their outlook for adidas to ‘negative’ due to a deterioration in credit metrics
amid pressure on the company’s operating performance from economic as well as company specific
challenges. In February 2023, Standard & Poor’s lowered its rating on adidas to ‘A-‘, while Moody’s
downgraded the company to ‘A3’, both with a ‘negative’ outlook. These downgrades reflected a further
downward revision of credit metrics following the release of the company’s financial guidance for 2023.
Overall, adidas' investment grade credit ratings continue to ensure an efficient access to capital markets.
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Financial leverage amounts to 121.2% (2021: 39.4%) and is defined as the ratio between adjusted net
borrowings in an amount of € 6.047 billion (2021: € 2.082 billion) and shareholders’ equity in an amount of
€ 4.991 billion (2021: € 7.519 billion). EBITDA amounted to € 1.874 billion for the financial year ending
December 31, 2022 (2021: € 3.066 billion). The ratio between adjusted net borrowings and EBITDA
amounted to 3.2 for the 2022 financial year (2021: 0.7).
COMPOSITION OF EBITDA € IN MILLIONS
2022 2021
Income before taxes 388 1,852
Adjustments for:
Depreciation, amortization and impairment losses 1,375 1,149
Reversals of impairment losses (4) (34)
Interest income (23) (13)
Interest expense 138 111
EBITDA as at December 31 1,874 3,066
In 2020, the definition of the net borrowings was adjusted to the criteria of the company's internal financial
guidelines and is therefore reported as adjusted net borrowings. It mainly complements the net
borrowings reported up to that point by the present value of future payment obligations from leasing and
pension commitments. The method of calculating adjusted net borrowings was revised in 2022 to align it
with general market practice and the approach of the rating agencies. The main change is the elimination
of the income tax adjustment from net borrowings.
The composition of the adjusted net borrowings is presented below:
COMPOSITION OF ADJUSTED NET BORROWINGS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Short-term borrowings 527 29
Long-term borrowings 2,946 2,466
Current and non-current lease liabilities 2,986 2,836
Pensions and similar obligations 118 267
Factoring 112 99
Subtotal 6,689 5,697
Cash and cash equivalents 798 3,828

Less trapped cash 155 214
Less accessible cash and cash equivalents 643 3,614
Adjusted net borrowings 6,047 2,082
RESERVES
Reserves within shareholders’ equity are as follows:
─ Capital reserve: primarily comprises the paid premium for the issuance of share capital as well as the
equity component of the issued convertible bond.
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─ Cumulative currency translation differences: comprises all foreign currency differences arising from
the translation of the financial statements of foreign operations.
─ Hedging reserve: comprises the effective portion of the cumulative net change in the fair value of cash
flow hedges (intrinsic value for options and spot component for forward contracts) related to hedged
transactions that have not yet occurred, hedges of net investments in foreign subsidiaries, and the
effective portion of the cumulative net change in the fair value of the total return swap.
─ Cost of hedging reserve – options: comprises the effective portion of the cumulative net change in the
fair value of cash flow hedges reflecting cost of hedging of options (time value and premium).
─ Cost of hedging reserve – forward contracts: comprises the effective portion of the cumulative net
change in the fair value of cash flow hedges reflecting cost of hedging of forward contracts (forward
component).
─ Other reserves: comprises the remeasurements of defined benefit plans consisting of the cumulative
net change of actuarial gains or losses relating to the defined benefit obligations, the return on plan
assets (excluding interest income) and the asset ceiling effect, the remeasurement of the fair value of
the equity investments measured at fair value through other comprehensive income, expenses
recognized for share option plans, and effects from the acquisition of non-controlling interests, as well
as reserves required by law.
─ Retained earnings: comprises both amounts that are required by the Articles of Association and
voluntary amounts that have been set aside by adidas. The reserve includes the unappropriated
accumulated profits less dividends paid, and consideration paid for the repurchase of adidas AG shares
exceeding the nominal value. In addition, the item includes the effects of the employee stock purchase
plan and the transition effects of the implementation of new IFRSs.
The capital reserve includes restricted capital in an amount of € 4 million (2021: € 4 million). Furthermore,
other reserves include additional restricted capital in an amount of € 98 million (2021: € 115 million). The
reclassification as of January 1, 2021 presented in the consolidated statement of changes in equity was
made in order to consistently present the effects from the repurchase of treasury shares in previous
years.
DISTRIBUTABLE PROFITS AND DIVIDENDS

Profits distributable to shareholders are determined by reference to the retained earnings of adidas AG
and calculated under German commercial law.
Based on the resolution of the 2022 Annual General Meeting, the dividend for 2021 was € 3.30 per share
(total amount: approx. € 610 million).
The Executive Board of adidas AG will propose to use retained earnings of adidas AG in an amount of
€ 723 million as reported in the 2022 financial statements of adidas AG for a dividend payment of € 0.70
per share and to carry forward the subsequent remaining amount.
As at February 21, 2023, 178,537,198 dividend-entitled shares exist. This would result in a dividend
payment of € 125 million.
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27 SHARE-BASED PAYMENT
EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS WITH EMPLOYEES
In 2016, adidas announced the introduction of an open-ended employee stock purchase plan (the ‘plan’).
The plan is operated on a quarterly basis, with each calendar quarter referred to as an ‘investment
quarter.’
The plan enables employees to purchase adidas AG shares with a 15% discount (‘investment shares’) and
to benefit from free matching shares. Currently, eligible employees of adidas AG and 17 other subsidiaries
can participate in the plan. Up to two weeks before the start of an investment quarter each eligible
employee can enroll for the plan. The company accepts enrollment requests on the first day of the relevant
investment quarter. This is the grant date for the investment and matching shares. The fair value at the
vesting date is equivalent to the fair value of the granted equity instruments at this date. The employees
invest an amount up to 10% of their gross base salary per quarter in the plan. A few days after the end of
the investment quarter the shares are purchased on the market at fair market value and transferred to the
employees. Thereby the amount invested during the quarter plus the top-up from adidas is used. These
shares can be sold at any time by the employee. If the shares are held for a period of one year after the
last day of an investment quarter, employees will receive, as a one-off, free matching shares (one
matching share for every six adidas AG shares acquired). This plan currently constitutes an equity-settled
share-based payment for both elements. For the component of the matching shares relating to the
specific period of service an appropriate discount is taken into account. The effects are presented in the
following table:
EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS WITH EMPLOYEES

As at
Dec. 31,
2021 As at December 31, 2022
17th 17th 18th 19th 20th 21st
investment investment investment investment investment investment
quarter quarter quarter quarter quarter quarter
Oct. 1, Oct. 1, Jan. 3, Apr. 1, 20 Jul. 1, 202 Oct. 3,
Grant date
2021 2021 2022 22 2 2022
Share price at grant date (in €) 270.25 270.75 259.10 210.10 167.64 119.00
Share price at December 31 (in €) 253.20 127.46
Number of granted investment shares based on the share price
28,614 48,555
as at December 31
Number of actually purchased investment shares1, 2 – 28,872 33,915 38,075 59,469 –
Outstanding granted matching shares based on the share price
4,769 – 5,652 6,346 9,911 7,465
as at December 31 or actually purchased investment shares
Average remaining vesting period in months as at December 31
12 – 3 6 9 12
(in months)
1 17th investment quarter: Thereof 14,131 own treasury shares used for investment shares.
2 18th investment quarter: Thereof 17,867 own treasury shares used for investment shares.
The matching shares in the amount of € 3.0 million are exercised within the fourth investment quarter
2021 to the first investment quarter 2023 (thereof 3,278 own treasury shares are used for matching
shares).
The number of forfeited matching shares during the period amounted to 3,557 (2021: 3,681).
As at December 31, 2022, the total expenses recognized relating to investment shares amounted to
€ 4.3 million (2021: € 3.7 million).
Expenses recognized relating to vesting of matching shares amounted to € 3.3 million in 2022 (2021:
€ 3.0 million).
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As at December 31, 2022, a total amount of € 5 million (2021: € 6 million) was invested by the participants
in the stock purchase plan and was not yet transferred into shares by the end of December 2022.
Therefore, this amount has been included in ‘Other current financial liabilities.’ ► SEE NOTE 18
Further information about the purchase of shares for the employee stock purchase plan is provided in
these Notes. ► SEE NOTE 26
EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS WITH THIRD PARTIES

In 2016, adidas entered into a promotion and advertising contract that includes a share-based payment
transaction with third parties. The contract has a general duration of five years until 2021 with an
automated renewal option of one year if no termination has taken place. In 2022 the contract has been
terminated. The first part of the agreement grants a transfer of basic shares, which correspond to a value
of US $ 5 million each year. In 2022 a transfer of bonus shares took place. ► SEE NOTE 26
As at January 1, 2022 (grant date), an amount of US $ 5 million was recognized as expenses for basic
shares over the vesting period of twelve months.
The second part of the agreement grants bonus shares of US $ 5 million if certain conditions are fulfilled.
This option can be granted twice. In 2022, the second option of bonus shares was granted, so that
26,868 shares were transferred. The shares from the tenth tranche of the share buyback program with an
average share price of € 273.50 were used for compensation. Due to this utilization, the provision for the
second option was used in the fiscal year (2021: € 4 million).
EQUITY-SETTLED SHARE-BASED PAYMENT FOR EXECUTIVE BOARD MEMBERS

In 2018, adidas established a Long-Term Incentive Plan (LTIP) for Executive Board members. In the
reporting year, a change in accounting policy was made for this item so that the LTIP is now accounted for
as equity-settled share-based payment. In the previous year, the LTIP was recorded as cash-settled
share-based payment as an accrual.
In implementation of the ‘Own the Game’ strategy applicable from the 2021 financial year, the LTIP
2021/2025 pursues the goal of aligning the long-term performance-based variable remuneration of the
Executive Board with the performance of the company and thus with the interests of the shareholders.
Against this background, the LTIP 2021/2025 is share-based. It consists of five annual tranches (2021 to
2025), each with a term of five years. Each of the five annual tranches consists of a performance year and a
subsequent four-year holding period. For the 2021/2025 LTIP, the Supervisory Board has set financial and
ESG-related performance criteria for each of the five performance years.
The annual LTIP tranche (‘Grant Amount’) is paid to the Executive Board members after approval of the
consolidated financial statements and is to be fully invested by the Executive Board members in the
acquisition of adidas AG shares. The shares acquired are subject to a holding period, which ends at the end
of the fourth financial year following the performance year. Only after the end of the holding period can the
Executive Board members dispose of the shares.
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As of December 31, 2022, the total number of adidas AG shares acquired since 2018 as part of the variable
performance-based compensation and subject to a holding period amounts to 78,698 no-par-value shares
(2021: 43,243 no-par-value shares). The number of adidas AG shares acquired by the members of the
Executive Board is shown individually below:
LTI BONUS: ACQUISITION OF SHARES IN THE CONTEXT OF THE LONG-TERM VARIABLE COMPENSATION IN €
LTIP tranche 2021 2020 2019 2018

Grant amount 14,182,500 1,482,105 9,244,573 9,015,692
Payout amount 7,449,357 778,475 4,825,271 4,702,793
Purchase price 210.10 270.75 255.00 219.20
Number of purchased shares 35,455 2,872 18,920 21,451
End of lock-up period Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2022
CASH-SETTLED SHARE-BASED PAYMENT TRANSACTIONS WITH EMPLOYEES

In 2017, adidas implemented a Long-Term Incentive Plan (LTIP), which is a share-based remuneration
scheme with cash settlement. RSUs (Restricted Stock Units) are granted on the condition that the
beneficiary is employed for three or four years by adidas AG or one of its subsidiaries in a position where
they are not under notice during that period. This minimum period of employment pertains to the calendar
year in which the RSUs are granted and the three subsequent calendar years. As an exception in 2022,
RSUs were granted with a minimum term of employment of one and two years, respectively.
The total value of the cash remuneration payable to senior management is recalculated on each reporting
date and on the settlement date, based on the fair value of the RSUs, and recognized through an
appropriate increase in the provision as personnel expenses that are spread over the period of service of
the beneficiary. Furthermore, social security contributions are considered in the calculation of the fair
value, if appropriate for the respective country regulations and the seniority of the participants. All
changes to the subsequent measurement of this provision are reported under personnel expenses.
Once a year, one tranche with a three-year term and another with a four-year term are issued. The
number of RSUs granted depends on the seniority of the beneficiaries. In addition, for the four-year plan,
the number of RSUs also depends on the achievement of a financial and ESG-related target. In 2022, the
option to issue two new tranches with a two-year and a one-year maturity was exercised.
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The value of one RSU is the average price of the adidas AG share as quoted for the first 20 stock exchange
trading days in January of the respective financial year. The effects are presented in the following table:
As at December 31, 2022

Plan year 2019 2020 2021 2022
4-year 3-year 4-year 3-year 4-year 3-year 4-year 3-year 2-year 1-year
Tranche
tranche tranche tranche tranche tranche tranche tranche tranche tranche tranche
Share price as at
December 31 127.46 – 125.77 127.46 121.70 125.77 117.13 121.70 125.77 127.46
(in €)
Number of granted
RSUs based on the
share price 108,039 – 24,667 102,877 227,521 37,745 102,523 236,945 2,149 2,149
as at December 31
(in €)
Average risk-free
interest rate based on
1.07% – 1.28% 1.07% 1.55% 1.28% 1.74% 1.55% 1.28% 1.07%
the share price
as at December 31
Average remaining
vesting period
– – 12 – 24 12 36 24 12 –
as at December 31
(in months)

Plan year 2018 2019 2020 2021
4-year 3-year 4-year 3-year 4-year 3-year 4-year 3-year
Tranche
tranche tranche tranche tranche tranche tranche tranche tranche
Share price as at December 31
253.20 – 249.69 253.20 245.86 249.69 241.79 245.86
(in €)
Number of granted RSUs based on
the share price as at December 31 174,199 – 144,646 195,116 31,826 131,444 284,570 47,922
(in €)
Average risk-free interest rate
based on the share price as at 0.86% – 0.80% 0.86% 0.77% 0.80% 0.75% 0.77%
December 31
Average remaining vesting period
– – 12 – 24 12 36 24
as at December 31 (in months)
The fair value is based on the closing price of the adidas AG share on December 31, 2022, adjusted for
future dividend payments.
In 2022, this resulted in an expense of € 36 million (2021: € 53 million). The corresponding provision
amounted to € 57 million (2021: € 162 million).
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28 NON-CONTROLLING INTERESTS
This line item within equity comprises the non-controlling interests in subsidiaries that are not directly or
indirectly attributable to adidas AG.
Non-controlling interests are assigned to two subsidiaries as at December 31, 2022, and to three
subsidiaries as at December 31, 2021. ► SEE SHAREHOLDINGS
The remaining non-controlling interest of 6.85% of Reebok India Company, acquired as part of the
acquisition of Reebok in 2006, was acquired in January 2022.
For the following subsidiaries with non-controlling interests, the main financial information is presented
combined.
SUBSIDIARIES WITH NON-CONTROLLING INTERESTS
Principal
place of Ownership interests held by
Legal entity name business non-controlling interests
Dec. 31, 2022 Dec. 31, 2021
Agron, Inc. USA 100% 100%
adidas Israel Ltd. Israel 15% 15%
Reebok India Company India – 6.85%
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The following table presents the main financial information on subsidiaries with significant non-controlling
interests before elimination.
FINANCIAL INFORMATION ON SUBSIDIARIES WITH NON-CONTROLLING INTERESTS € IN MILLIONS
Non-controlling interests
Dec. 31, 2022 Dec. 31, 2021
Thereof: Thereof:
Total Agron, Inc. Total Agron, Inc.
Net sales 751 556 651 424
Net income 32 25 56 40
Net income attributable to non-controlling
26 25 42 40
interests
Other comprehensive income 24 20 30 39

Total comprehensive income 56 45 85 79
Total comprehensive income attributable to
47 45 81 79
non-controlling interests
Current assets 398 307 433 290

Non-current assets 165 124 156 111
Current liabilities (139) (78) (162) (72)
Non-current liabilities (24) – (23) –
Net assets 399 353 403 328
Net assets attributable to non-controlling
interests according to the consolidated 360 353 318 328
statement of financial position
Net cash generated from/(used in) operating

15 (11) 117 66
activities
Net cash used in investing activities (30) (20) (1) (0)
Net cash used in financing activities (41) (21) (37) 0
Net (decrease)/increase of cash and cash
(56) (52) 79 66
equivalents
Dividends paid to non-controlling interests
22 22 – –
during the year1
1 Included in net cash used in financing activities.
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29 FINANCIAL INSTRUMENTS
CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUES INCLUDING HIERARCHY ACCORDING TO IFRS 13 € IN MILLIONS
Category December 31, 2022 December 31, 2021

Carry- Carry-
ing Fair ing 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 equivalents Amortized cost 726 – – – 2,449 – – –
Fair value through
Cash equivalents 72 72 – 72 – 1,379 1,379 – 1,379 –
profit or loss
Accounts receivable Amortized cost 2,529 – – – 2,175 – – –
Other current financial assets
Derivatives used in hedge
n.a. 168 168 – 168 – 237 237 – 237 –
accounting
Derivatives not used in Fair value through
65 65 – 65 – 36 36 – 36 –
hedge accounting profit or loss
Fair value through
Promissory notes – – – – – 12 12 – – 12
profit or loss
Other investments Amortized cost 78 – – – 71 – – –
Other financial assets Amortized cost 703 – – – 389 – – –
Long-term financial assets
Fair value through
Other equity investments 89 89 – – 89 89 89 – – 89
profit or loss
Fair value through
other
Other equity investments 86 86 2 – 84 80 80 – – 80
comprehensive
income
Fair value through
Other investments 42 42 – 42 – 30 30 – 30 –
profit or loss
Other investments Amortized cost 83 – – – 91 – – –
Loans Amortized cost 0 – – – 0 – – –
Other non-current financial
assets
n.a. 1 1 – 1 – 11 11 – 11 –
accounting
– – – – – 42 42 – 42 –
Fair value through
Earn-out components 227 227 – – 227 – – – – –
profit or loss
Other financial assets Amortized cost 108 – – – 108 – – –
Financial assets per level 2 347 400 – 1,735 181
Financial liabilities
Short-term borrowings
Bank borrowings Amortized cost 29 – – – 29 – – –
Convertible bond Amortized cost 498 490 490 – – – – – – –
Accounts payable Amortized cost 2,908 – – – 2,294 – – –
Current accrued liabilities Amortized cost 997 – – – 1,006 – – –
Current accrued liabilities for
Amortized cost 808 – – – 878 – – –
customer discounts
Other current financial
liabilities
n.a. 127 127 – 127 – 129 129 – 129 –
accounting
64 64 – 64 – 54 54 – 54 –
Other financial liabilities Amortized cost 232 – – – 180 – – –
Lease liabilities n.a. 643 – – – 573 – – –
Long-term borrowings
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CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS AND THEIR FAIR VALUES INCLUDING HIERARCHY ACCORDING TO IFRS 13 € IN MILLIONS
Category December 31, 2022 December 31, 2021

Carry- Carry-
ing Fair ing Fair
amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3
Bank borrowings Amortized cost 63 – – – 82 – – –
Eurobond Amortized cost 2,883 2,604 2,604 – – 1,890 1,929 1,929 – –
Convertible bond Amortized cost – – – – – 494 572 572 – –
Non-current accrued
Amortized cost 4 – – – 2 – – –
liabilities
Other non-current financial
liabilities
n.a. 44 44 – 44 – 20 20 – 20 –
accounting
– – – – – 31 31 – 31 –
Lease liabilities n.a. 2,343 – – – 2,263 – – –
Financial liabilities per level 3,095 235 – 2,501 234 –
Thereof: aggregated by category

according to IFRS 9
Financial assets at fair value
495 1,588
through profit or loss (FVTPL)
Thereof: held for trading
87 87
(FAHfT)
Financial assets at fair value
through other comprehensive 86 80
income (FVOCI)
Thereof: equity investments
(without recycling to profit 86 80
and loss)
Financial assets at amortized
4,288 5,283
cost (AC)
Financial liabilities at fair value
124 85
through profit or loss (FVTPL)
Financial liabilities at amortized
8,423 6,855
cost (AC)
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).
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RECONCILIATION OF FAIR VALUE HIERARCHY LEVEL 3 IN 2022 € IN MILLIONS
Realized Unrealized
Fair
Fair value value
Jan. 1, Dis- Currency Dec. 31,
2022 Additions posals Gains Losses Gains Losses Transfers translation 2022
Investments in
other equity
instruments held 87 – – – – 0 – – – 87
for trading
(FAHfT)
Investments in
other equity
2 – – – – – – – – 2
instruments
(FVTPL)
Investments in
other equity
80 6 (0) – – 4 (3) (3) – 84
instruments
(FVOCI)
Promissory notes
12 – (12) – – – – – – –
(FVTPL)
Earn-out
components – 247 – – – – (20) – – 227
(assets)
RECONCILIATION OF FAIR VALUE HIERARCHY LEVEL 3 IN 2021 € IN MILLIONS
Realized Unrealized
Fair
Fair value value
Jan. 1, Dis- Currency Dec. 31,
2021 Additions posals Gains Losses Gains Losses Transfers translation 2021
Investments in
other equity
instruments held 87 – – – – – – – – 87
for trading
(FAHfT)
Investments in
other equity
2 – – – – – – – – 2
instruments
(FVTPL)
Investments in
other equity
79 10 (10) – – 1 – – – 80
instruments
(FVOCI)
Promissory notes
171 – (158) – – – (8) – 7 12
(FVTPL)
Earn-out
components 12 – (21) 9 – – – – – –
(assets)
Due to the short-term maturities of cash and cash equivalents, short-term financial assets, and accounts
receivable and payable, as well as other current financial receivables and payables, their respective fair
values equal their carrying amount.
The fair values of non-current financial assets and liabilities are estimated by discounting expected future
cash flows using current interest rates for debt of similar terms and remaining maturities and adjusted by
a company-specific credit risk premium.
Fair values of long-term financial assets are based on quoted market prices in an active market or are
calculated as present values of expected future cash flows.
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adidas designated certain investments as equity securities at fair value through other comprehensive
income (equity), because the company intends to hold those investments for the long term in order to gain
insights into innovative production technologies and trends. The designation of certain equity instruments
at fair value through other comprehensive income (equity) is based on a strategic Management decision.
In accordance with IFRS 13, the following tables show the valuation methods used in measuring Level 1,
Level 2, and Level 3 fair values, as well as the significant unobservable inputs used.
In 2022, a reclassification has been made in other equity investments from level 3 to level 2 and level 1.
FINANCIAL INSTRUMENTS LEVEL 1 MEASURED AT FAIR VALUE
Significant
unobservable
Type Valuation method inputs Category
The fair value is based on the market price of the
Convertible bond Not applicable Amortized cost
convertible bond as at December 31, 2022.
The fair value is based on the market price of the
Eurobond Not applicable Amortized cost
eurobond as at December 31, 2022.
Fair value
Other equity The fair value is based on the market price of the through other
Not applicable
investments investment as at December 31, 2022. comprehensive
income
Significant
unobservable
Type Valuation method inputs Category
The discounted cash flow method is applied,
Cash equivalents
which considers the present value of expected
and short-term Fair value
payments, discounted using a risk-adjusted
financial assets Not applicable through profit or
discount rate. Due to their short-term maturities,
(money market loss
it is assumed that their respective fair value is
funds)
equal to the notional amount.
Long-term financial
Fair value
assets The fair value is based on the market price of the
Not applicable through profit or
(investment assets as at December 31, 2022.
loss
securities)
In 2022, adidas applied the par method (forward n.a./fair value
Forward exchange
NPV) for all currency pairs to calculate the fair Not applicable through profit or
contracts
value, implying actively traded forward curves. loss
adidas applies the Garman-Kohlhagen model, n.a./fair value
Currency options which is an extended version of the Black- Not applicable through profit or
Scholes model. loss
Fair value
Share option (cash
adidas applies the Black-Scholes model. Not applicable through profit or
settled)
loss
The fair value is based on the market price of the n.a./fair value
Total return swap
adidas AG share as at December 31, 2022, minus Not applicable through profit or
(for own shares)
accrued interest. loss
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Inter-relationship between
significant
Significant unobservable unobservable inputs and fair
Type Valuation method inputs value measurement Category
This equity security does not have a quoted
market price in an active market. Existing
contractual arrangements (based on the
Investment in FC Fair value
externally observable dividend policy of FC See column ‘Valuation
Bayern München through profit
Bayern München AG) are used in order to method’
AG or loss
calculate the fair value as at December 31, 2022.
These dividends are recognized in other
financial income.
The valuation follows an option price model
The estimated fair value
based on the Monte Carlo method to simulate Risk-adjusted
would increase (decrease)
Earn-out future gross royalty income. The derived earn- maturity-specific Fair value
if gross royalty income
components out payments are discounted using a risk- discount rate through profit
were higher (lower) or the
(assets) adjusted discount rate. The fair value (11.2% – 11.4%), gross or loss
risk-adjusted discount rate
adjustment is recognized in discontinued royalty income
was lower (higher).
operations.
The discounted cash flow method is applied,
The estimated fair value
which considers the present value of expected
Risk-adjusted would increase (decrease) Fair value
payments discounted using a risk-adjusted
Promissory notes maturity-specific if the risk-adjusted through profit
discount rate. Fair value adjustments regarding
discount rate (2.7%) discount rate was lower or loss
the Mitchell & Ness promissory note are
(higher).
recognized in financial result.
The significant inputs (financing rounds) used to
Investments in measure fair value include one or more events
other equity where objective evidence of any changes was Fair value
See column ‘Valuation
instruments (fair identified, considering expectations regarding through profit
method’
value through future business development. The fair value or loss
profit or loss) adjustment is recognized in other financial
result.
The option to measure equity instruments at fair
value through other comprehensive income
Investments in
upon implementation of IFRS 9 has been
other equity
exercised. The significant inputs (financing Fair value
instruments (fair
rounds) used to measure fair value include one See column ‘Valuation through other
value through
or more events where objective evidence of any method’ comprehensive
other
changes was identified, considering income
comprehensive
expectations regarding future business
income)
development. The fair value adjustment is
recognized in other reserves.
NET GAINS/(LOSSES) ON FINANCIAL INSTRUMENTS RECOGNIZED IN THE CONSOLIDATED INCOME STATEMENT € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Financial assets classified at amortized cost (AC) (79) (6)
Financial assets at fair value through profit or loss (FVTPL) (4) (1)
Thereof: designated as such upon initial recognition – –
Thereof: classified as held for trading 0 –
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) 24 8
Financial liabilities at fair value through profit or loss (FVTPL) – –
Thereof: designated as such upon initial recognition – –
Thereof: classified as held for trading – –
Net gains or losses on financial assets measured at amortized cost comprise mainly impairment losses
and reversals.
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Net gains or losses on financial assets or financial liabilities classified as fair value through profit or loss
include the effects from fair value measurements of the derivatives that are not part of a hedging
relationship, and changes in the fair value of other financial instruments as well as interest expenses.
Net gains or losses on equity instruments at fair value through profit or loss mainly include fair value
adjustments based on the respective valuation method. ► SEE TABLE ‘FINANCIAL INSTRUMENTS LEVEL 3 MEASURED AT FAIR VALUE’
During 2022, no dividends regarding equity instruments at fair value through other comprehensive income
were recognized.
Net gains or losses on financial liabilities measured at amortized cost include effects from early
settlement and reversals of accrued liabilities and refund liabilities.
NOTIONAL AMOUNTS OF ALL OUTSTANDING CURRENCY HEDGING INSTRUMENTS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Forward exchange contracts 11,917 11,282
Total 12,377 11,673
FAIR VALUES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Positive Negative Positive Negative
fair value fair value fair value fair value
Forward exchange contracts 225 (152) 246 (189)
Currency options 7 (1) 19 (0)
Total 233 (153) 265 (189)
NOTIONAL AMOUNTS OF OUTSTANDING US DOLLAR HEDGING INSTRUMENTS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Forward exchange contracts 5,669 5,017
Total 6,119 5,334
FINANCIAL RISKS
CURRENCY RISKS
Currency risks for adidas are a direct result of multi-currency cash flows within the company. The vast
majority of the transactional risk arises from product sourcing in US dollars, while sales are typically
denominated in the functional currency of the respective companies. The currencies in which these
transactions are mainly denominated are the US dollar, British pound, Japanese yen, and Chinese
renminbi.
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As governed by the company’s Treasury Policy, adidas has established a hedging system on a rolling basis
up to 24 months in advance, under which the vast majority of the anticipated seasonal hedging volume is
secured approximately six months prior to the start of a season. In rare instances, hedges are contracted
beyond the 24-month horizon.
adidas uses a combination of different hedging instruments, such as forward exchange contracts,
currency options, and swaps, to protect itself against unfavorable currency movements. These contracts
are generally designated as cash flow hedges.
Furthermore, translation impacts from the conversion of non-euro-denominated results into the
company’s functional currency, the euro, might lead to a material negative impact on the company’s
financial performance.
Further information about the accounting and hedge accounting treatment is included in these Notes.
► SEE NOTE 02
Exposures are presented in the following table:
EXPOSURE TO FOREIGN EXCHANGE RISK BASED ON NOTIONAL AMOUNTS € IN MILLIONS
USD GBP JPY CNY

Exposure from firm commitments and
(5,879) 880 442 834
forecast transactions
Balance sheet exposure including
(258) 14 4 168
intercompany exposure
Total gross exposure (6,137) 894 446 1,002
Hedged with currency options 450 – 11 –
Hedged with forward contracts 3,590 (696) (317) (753)
Net exposure (2,097) 197 140 249

Exposure from firm commitments and
(6,127) 1,345 602 1,092
forecast transactions
Balance sheet exposure including
(158) 11 (36) 208
intercompany exposure
Total gross exposure (6,285) 1,356 566 1,300
Hedged with currency options 318 (33) (40) –
Hedged with forward contracts 4,439 (1,198) (372) (1,130)
Net exposure (1,528) 125 154 170
The exposure from firm commitments and forecast transactions was calculated on a one-year basis.
In line with IFRS 7 requirements, the company has calculated the impact on net income and shareholders’
equity based on changes in the most important currency exchange rates. The calculated impacts mainly
result from changes in the fair value of the hedging instruments. The analysis does not include effects that
arise from the translation of the company’s foreign entities’ financial statements into the company’s
reporting currency, the euro. The sensitivity analysis is based on the net balance sheet exposure, including
intercompany balances from monetary assets and liabilities denominated in foreign currencies. Moreover,
all outstanding currency derivatives were re-evaluated using hypothetical foreign exchange rates to
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determine the effects on net income and equity. The analysis was performed on the same basis for both
2022 and 2021.
Based on this analysis, a 10% increase in the euro versus the US dollar at December 31, 2022, would have
led to a € 13 million increase in net income.
SENSITIVITY ANALYSIS OF FOREIGN EXCHANGE RATE CHANGES € IN MILLIONS
USD GBP JPY CNY

EUR +10% EUR +10% EUR +10% EUR +10%
Equity (264) 60 30 50
Net income 13 (1) (0) (4)
EUR –10% EUR –10% EUR –10% EUR –10%
Equity 335 (74) (36) (61)
Net income (15) 2 0 4

EUR +10% EUR +10% EUR +10% EUR +10%
Equity (351) 110 37 81
Net income 6 (1) 3 1
EUR -10% EUR -10% EUR -10% EUR -10%
Equity 440 (135) (45) (99)
Net income (5) 1 (4) (1)
The more negative market values of the US dollar hedges would have decreased shareholders’ equity by
€ 264 million. A 10% weaker euro at December 31, 2022, would have led to a € 15 million decrease in net
income. Shareholders’ equity would have increased by € 335 million. The impacts of fluctuations of the
euro against the British pound, the Japanese yen and the Chinese renminbi on net income and
shareholders’ equity are also included in accordance with IFRS requirements.
However, many other financial and operational variables that could potentially reduce the effect of
currency fluctuations are excluded from the analysis. For instance:
─ Interest rates, commodity prices, and all other exchange rates are assumed constant.
─ Exchange rates are assumed at a year-end value instead of the more relevant sales-weighted average
figure, which the company utilizes internally to better reflect both the seasonality of its business and
intra-year currency fluctuations.
─ The underlying forecast cash flow exposure (which the hedge instrument mainly relates to) is not
required to be revalued in this analysis.
─ Operational aspects, such as potential discounts for key accounts, which have high transparency
regarding the impacts of currency on our sourcing activities (due to their own private label sourcing
efforts), are also excluded from this analysis.
─ The credit risk is not considered as part of this analysis.
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The company also largely hedges balance sheet risks. Due to its strong global position, adidas is able to
partly minimize the currency risk by utilizing natural hedges. The company’s gross US dollar cash flow
exposure calculated for 2023 was around € 7.5 billion at year-end 2022, which was hedged using forward
exchange contracts, currency options and currency swaps.
CREDIT RISKS
A credit risk arises if a customer or other counterparty to a financial instrument fails to meet its
contractual obligations. adidas is exposed to credit risks from its operating activities and from certain
financing activities. Credit risks arise principally from accounts receivable and, to a lesser extent, from
other third-party contractual financial obligations such as other financial assets, short-term bank
deposits, and derivative financial instruments. Without taking into account any collateral or other credit
enhancements, the carrying amount of financial assets and accounts receivable represents the maximum
exposure to credit risk.
At the end of 2022, there was no relevant concentration of credit risk by type of customer or geography.
The company’s credit risk exposure is mainly influenced by individual customer characteristics. Under the
company’s credit policy, new customers are analyzed for creditworthiness before standard payment and
delivery terms and conditions are offered. Tolerance limits for accounts receivable are also established for
each customer. Both creditworthiness and accounts receivable limits are monitored on an ongoing basis.
Customers that fail to meet the company’s minimum creditworthiness are, in general, allowed to purchase
products only on a prepayment basis.
Other activities to mitigate credit risks include retention of title clauses as well as, on a selective basis,
credit insurance, the sale of accounts receivable without recourse, and bank guarantees. Further
quantitative information on the extent to which credit enhancements mitigate the credit risk of accounts
receivable is included in these Notes. ► SEE NOTE 06
At the end of 2022, no customer accounted for more than 10% of accounts receivable.
The Treasury department arranges currency, commodity, interest rate, and equity hedges, and invests
cash with major banks of a high credit standing throughout the world. adidas subsidiaries are authorized
to work with banks rated BBB+ or higher. Only in exceptional cases are subsidiaries authorized to work
with banks rated lower than BBB+. To limit risk in these cases, restrictions are clearly stipulated, such as
maximum cash deposit levels. In addition, the credit default swap premiums of the company’s partner
banks are monitored on a monthly basis. In the event that the defined threshold is exceeded, credit
balances are shifted to banks compliant with the limit. ► SEE TREASURY
adidas furthermore believes that the risk concentration is limited due to the broad distribution of the
investment business of the company with a high number of globally operating banks. At December 31,
2022, four banks accounted between 10% and maximum 20% of the investments of adidas. Including
subsidiaries’ short-term deposits in local banks, the average concentration was 2%. This leads to a
maximum exposure of € 119 million in the event of default of any single bank.
In addition, in 2022, adidas held derivatives of foreign exchange with a positive fair market value in the
amount of € 233 million. The maximum exposure to any single bank resulting from these assets amounted
to € 67 million and the average concentration was 8%.
In accordance with IFRS 7, the following table includes further information about set-off possibilities of
derivative financial assets and liabilities. The majority of agreements between financial institutions and
adidas include a mutual right to set off. However, these agreements do not meet the criteria for offsetting
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in the statement of financial position, because the right to set off is enforceable only in the event of
counterparty defaults.
The carrying amounts of recognized derivative financial instruments, which are subject to the agreements
mentioned here, are also presented in the following table:
SET-OFF POSSIBILITIES OF DERIVATIVE FINANCIAL ASSETS AND LIABILITIES € IN MILLIONS
2022 2021
Assets
Gross amounts of recognized financial assets 233 326
Financial instruments which qualify for set-off in the statement of financial
– –
position
Net amounts of financial assets presented in the statement of financial position 233 326
Set-off possible due to master agreements (132) (176)
Total net amount of financial assets 101 150
Liabilities
Gross amounts of recognized financial liabilities (235) (234)
Financial instruments which qualify for set-off in the statement of
– –
financial position
Net amounts of financial liabilities presented in the statement of
(235) (234)
financial position
Set-off possible due to master agreements 132 176
Total net amount of financial liabilities (103) (58)
INTEREST RATE RISKS

Changes in global market interest rates affect future interest payments for variable-interest liabilities. As
adidas does not have material variable-interest liabilities, even a significant increase in interest rates
should have only slight adverse effects on the company’s profitability, liquidity, and financial position.
To reduce interest rate risks and maintain financial flexibility, a core tenet of the company’s financial
strategy is to continue to use surplus cash flow from operations to reduce short-term gross borrowings.
Beyond that, adidas may consider adequate hedging strategies through interest rate derivatives in order to
mitigate interest rate risks. ► SEE TREASURY
SHARE PRICE RISKS

Share price risks arise due to the Long-Term Incentive Plan (LTIP), which is a share-based remuneration
scheme with cash settlement, and the equity-neutral convertible bond with cash settlement. In order to
mitigate share price risks, it is company strategy to use swaps and options to hedge against share price
fluctuations. Swaps are used to hedge the Long-Term Incentive Plan and are classified as cash flow
hedges. The embedded cash option in the convertible bond is fully offset with a call option to mitigate the
cash settlement.
In line with IFRS 7 requirements, adidas has calculated the impact on net income based on changes in the
company’s share price. A 10% increase in the adidas AG share price versus the closing share price at
December 31, 2022, would have led to a € 5 million increase in net income and a € 3 million increase in
shareholders’ equity, whereas a 10% decrease in the adidas AG share price versus the closing share price
at December 31, 2022, would have led to a € 5 million decrease in net income and would have decreased
shareholders’ equity by € 3 million.
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FINANCING AND LIQUIDITY RISKS

Liquidity risks arise from not having the necessary resources available to meet maturing liabilities with
regard to timing, volume and currency structure. In addition, the company faces the risk of having to
accept unfavorable financing terms due to liquidity restraints. The Treasury department uses an efficient
cash management system in order to make best use of the operating cash flow. A twelve-month rolling
cash flow forecast on a monthly basis is established to manage liquidity risk. In line with the Financial
Policy, adidas aims to maintain a target leverage ratio and a target twelve months liquidity coverage.
Committed and uncommitted credit lines ensure further financial flexibility. Overall, adidas’ investment
grade credit ratings ensure an efficient access to capital markets.
At December 31, 2022, cash and cash equivalents together with marketable securities amounted to
€ 0.798 billion (2021: € 3.828 billion). Moreover, the company maintains € 4.090 billion (2021:
€ 4.169 billion) in bilateral credit lines, which are designed to ensure sufficient liquidity at all times.
Thereof, since November 15, 2022, there has been a € 2.0 billion syndicated credit facility in place with our
core partner banks. ► SEE TREASURY
Future cash outflows arising from financial liabilities that are recognized in the consolidated statement of
financial position are presented in the table.
This includes payments to settle obligations from borrowings as well as cash outflows from cash-settled
derivatives with negative market values. Financial liabilities that may be settled in advance without penalty
are included on the basis of the earliest date of potential repayment. Cash flows for variable-interest
liabilities are determined with reference to the conditions at the balance sheet date.
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FUTURE CASH OUTFLOWS € IN MILLIONS
More
Up to Up to Up to Up to Up to than
1 year 2 years 3 years 4 years 5 years 5 years Total
As at
December 31, 2022
Bank borrowings 29 19 19 19 7 – 93
Eurobond1 43 543 543 428 19 1,556 3,132
Equity-neutral
498 – – – – – 498
convertible bond
Accounts payable 2,908 – – – – – 2,908
Other financial
232 – – – – – 232
liabilities
Accrued liabilities2 997 – – – – 4 1,001
Derivative financial
5,183 296 30 – – – 5,509
liabilities
Total 9,890 858 592 447 26 1,560 13,373
As at
December 31, 2021
Bank borrowings 29 19 19 18 19 7 111
Eurobond1 12 12 512 12 412 1,029 1,989
Equity-neutral
– 494 – – – – 494
convertible bond
Accounts payable 2,294 – – – – – 2,294
Other financial
180 – – – – – 180
liabilities
Accrued liabilities2 1,006 2 – – – – 1,008
Derivative financial
4,175 390 5 4 4 13 4,590
liabilities
Total 7,696 917 536 34 435 1,049 10,666
1 Including interest payments.

2 Accrued interest excluded.
adidas ended the year 2022 with an adjusted net borrowings of € 6.047 billion (2021: € 2.082 billion).
Further information in the methodology for calculating adjusted net borrowings is provided in these notes.
► SEE NOTE 26
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FINANCIAL INSTRUMENTS FOR THE HEDGING OF FOREIGN EXCHANGE RISK

As at December 31, 2022, adidas held the following instruments to hedge exposure to changes in foreign
currency:
AVERAGE HEDGE RATES
Maturity
As at December 31, 2022 short-term long-term
Foreign currency risk

Net exposure (€ in millions) 1,548 154
Forward exchange contracts
Average EUR/USD forward rate 1.096 1.064
Average EUR/GBP forward rate 0.865 0.877
Average EUR/JPY forward rate 133.215 135.203
Average EUR/CNY forward rate 7.269 7.191
Option exchange contracts
Average EUR/GBP forward rate – –
Average EUR/JPY forward rate 130.000 –
Average USD/CNY forward rate – –
Equity risk
Net exposure (€ in millions) 78 83
Total return swap
Average hedge rate 305.639 229.294
AVERAGE HEDGE RATES
Maturity
As at December 31, 2021 short-term long-term

Net exposure (€ in millions) 1,206 233
Forward exchange contracts
Average EUR/GBP forward rate 0.868 0.856
Average EUR/JPY forward rate 129.346 128.729
Average EUR/CNY forward rate 8.033 7.765
Option exchange contracts
Average EUR/GBP forward rate 0.894 –
Average EUR/JPY forward rate 132.372 –
Average USD/CNY forward rate – –
Equity risk
Net exposure (€ in millions) 71 91
Total return swap
Average hedge rate 206.392 301.402
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The amounts at the reporting date relating to items designated as hedged items were as follows:
DESIGNATED HEDGED ITEMS AS AT DECEMBER 31, 2022 € IN MILLIONS

Balances remaining in
the cash flow hedging
reserve from hedge
Change in value used for relationships for which
calculating hedge hedge accounting is no
ineffectiveness Hedging reserve Cost of hedging reserve longer applied

Sales (205) 104 (63) –
Inventory purchases 76 31 8 –
Net foreign investment risk 50 (265) – –
Equity risk
Long-Term Incentive Plans 85 (23) – –
DESIGNATED HEDGED ITEMS AS AT DECEMBER 31, 2021 € IN MILLIONS

Balances remaining in
the cash flow hedging
reserve from hedge
Change in value used for relationships for which
calculating hedge hedge accounting is no
ineffectiveness Hedging reserve Cost of hedging reserve longer applied

Sales (138) (83) (19) –
Inventory purchases (119) 191 7 –
Net foreign investment risk 52 (215) – –
Equity risk
Long-Term Incentive Plans 32 (5) – –
The hedging reserves of € 265 million for net foreign investment risk contains hedges of € 181 million
related to the Chinese renminbi and € 76 million to the Russian ruble for which by the end of 2022 no
outstanding hedging instruments were in place anymore.
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The amounts relating to items designated as hedging instruments and hedged ineffectiveness were as
follows:
DESIGNATED HEDGE INSTRUMENTS € IN MILLIONS
2022 During the period 2022

Carrying
amount
Changes
Changes in the
in the value Amount
Line value of the Amount from Amount
item in of the hedging Line item from cost of Amount reclas-
statement hedging instru- Hedge in income hedging hedging reclassified Line item
of financial instrument ineffec- statement reserve reserve sified from in income
position ment recog- tiveness which trans- trans- from cost of statement
where the recognized in recog- includes ferred ferred hedging hedging affected
hedging nized in cost of nized in hedge to to reserve reserve by the
Nominal Liabi- instrument hedging hedging profit ineffec- inven- inven- to profit to profit reclassi-
amount Assets lities is included reserve reserve or loss tiveness tory tory or loss or loss fication
Foreign ex Other
change financial
3,081 102 2 205 (134) – Net Sales – – (182) 64 Net Sales
contracts – assets/
sales liabilities
Foreign
Other
exchange
financial Cost of Cost of
contracts – 3,897 85 (54) (76) (39) – 249 84 – –
assets/ sales sales
inventory
liabilities
purchases
Foreign
exchange Other
contracts – financial Financial Financial
– – – (50) – – – – – –
net foreign assets/ result result
invest- liabilities
ments
Total
return Other
Other
swap – financial Financial
161 – (82) (85) – – – – 67 – operating
Long-Term assets/ result
expenses
Incentive liabilities
Plans
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DESIGNATED HEDGE INSTRUMENTS € IN MILLIONS
2021 During the period 2021

Carrying amount
Changes
Changes in the
in the value Amount
Line value of the Amount from Amount
item in of the hedging Line item from cost of Amount reclass-
statement hedging instru- Hedge in income hedging hedging reclassified Line item
of financial instrument ineffec- statement reserve reserve ified from in income
position ment recog- tiveness which trans- trans- from cost of statement
where the recognized in recog- includes ferred ferred hedging hedging affected
hedging nized in cost of nized in hedge to to reserve reserve by the
Nominal Liabi- instrument hedging hedging profit ineffec- inven- inven- to profit to profit reclass-
amount Assets lities is included reserve reserve or loss tiveness tory tory or loss or loss ification
Foreign ex Other
change financial Cost of Cost of
4,028 24 (107) 138 (134) – – – (122) 72
contracts – assets/ sales sales
sales liabilities
Foreign
Other
exchange
financial Cost of Cost of
contracts – 4,685 195 (4) 119 (30) – (145) 60 – –
assets/ sales sales
inventory
liabilities
purchases
Foreign
exchange Other
contracts – financial Financial Financial
112 – – (52) – – – – – –
net foreign assets/ result result
invest- liabilities
ments
Total
return Other
Other
swap – financial Financial
162 16 (15) (32) – – – – 17 – operating
Long-Term assets/ result
expenses
Incentive liabilities
Plans
Some of the initial planned exposure for purchases and sales in foreign currencies ceased to exist, which
led to certain overhedge positions. In accordance with IFRS 9, hedge accounting was immediately
discontinued for hedging instruments that were no longer covered by a purchase or sales transaction, and,
at the time the over-hedged status was determined, the fair value was transferred from the hedging
reserve to the income statement. In 2022, a loss of € 6 million was reclassified into the net sales and a
gain of € 81 million was reclassified into the cost of sales, which includes a loss of € 13 million related to
the business in Russia. Since 2022, foreign exchange contracts for sales have been recognized in net sales
in order to better reflect the hedging structure in the income statement.
In addition, hedging instruments not designated as hedge accounting in accordance with IFRS 9 were
canceled to minimize the economic risk.
For overhedges related to the Long-Term Incentive Plan from 2020 a loss of € 5 million was reclassified to
the financial result.
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The following table provides a reconciliation by risk category of components of equity and analysis of OCI
items, net of tax, resulting from cash flow hedge accounting:
CHANGES OF RESERVES BY RISK CATEGORY € IN MILLIONS
Cost of
Hedging hedging
reserve reserve
Balance at January 1, 2022 (109) (20)
Cash flow hedges

Changes in fair value:
Foreign currency risk – sales 10 11
Foreign currency risk – inventory purchases 122 37
Foreign currency risk – net foreign investment (50) –
Amount no longer recognized in OCI:
Foreign currency risk (68) (149)
Contracts during the year (37) 57
Amount included in the cost of non-financial items:
Foreign currency risk – inventory purchases – –
Tax on movements of reserves during the year 59 7
Equity hedges
Changes in fair value: (85) –
Amount reclassified to profit or loss 67 –
Balance at December 31, 2022 (90) (58)
CHANGES OF RESERVES BY RISK CATEGORY € IN MILLIONS
Cost of
Hedging hedging
reserve reserve
Balance at January 1, 2021 (317) (31)
Cash flow hedges

Changes in fair value:
Foreign currency risk – sales (304) 99
Foreign currency risk – inventory purchases 290 28
Foreign currency risk – net foreign investment (52) –
Amount reclassified to profit or loss:
Foreign currency risk 267 (132)
Contracts during the year 22 15
Amount no longer recognized in OCI:
Foreign currency risk – inventory purchases – –
Tax on movements on reserves during the year 45 –
Equity hedges
Changes in fair value: (32) –
Amount reclassified to profit or loss 17 –
Balance at December 31, 2021 (64) (21)
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In order to determine the fair values of derivatives that are not publicly traded, adidas uses generally
accepted quantitative financial models based on market conditions prevailing at the balance sheet date.
NOTES TO THE CONSOLIDATED INCOME STATEMENT

30 OTHER OPERATING INCOME
Other operating income consists of the following:
OTHER OPERATING INCOME € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Income from transitional service agreements 156 –
Income from release of accrued liabilities and other provisions 7 14
Gains from disposal of fixed assets 3 5
Sundry income 7 10
Other operating income 173 28
Income from transition services agreements relates to contracts with the buyer of the Reebok business. In
this context, adidas provides services for a limited period of time to ensure a smooth transition of the
business. The corresponding costs are included in other operating expenses.
31 OTHER OPERATING EXPENSES

Expenses are presented by function according to the ‘cost of sales method’ in the income statement with
the exception of impairment losses (net) on accounts receivable and contract assets which are disclosed in
a separate line item as required by IFRS 9 ‘Financial Instruments.’
Other operating expenses presented by functions include marketing and point-of-sale expenses,
distribution and selling expenses, and general and administration expenses, as well as sundry expenses
less any income from government grants, if applicable.
Marketing and point-of-sale expenses consist of promotion and communication spending such as
promotion contracts, advertising, events, and other communication activities. However, they do not include
marketing overhead expenses, which are presented in distribution and selling expenses.
The distribution and selling expenses consist of sales force and sales administration costs, direct and
indirect supply chain costs, and marketing overhead expenses, as well as expenses for research and
development, which amounted to € 153 million in 2022 (2021: € 130 million).
General and administration expenses include the functions IT, Finance, Legal, Human Resources, and
Facilities & Services, as well as General Management.
Sundry expenses consist mainly of costs for one-time effects as well as losses from disposal of fixed
assets.
Income from government grants is reported as a deduction from the related expenses and amounted to
€ 36 million in 2022 (2021: € 84 million).
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32 COST BY NATURE
Supplementary information on the expenses by nature is detailed below.
Cost of materials represents the amount of inventories recognized as an expense during the period.
Depreciation of tangible and right-of-use assets, amortization of intangible assets, and impairment losses
and reversals of impairment losses on those assets are primarily included within other operating
expenses unless they are directly attributable to the production costs, in which case the expenses are
included within the cost of sales. Impairment losses on goodwill are presented as a separate line item in
the consolidated income statement.
Personnel expenses are primarily included within other operating expenses unless they are directly
attributable to the production costs, in which case the expenses are included within the cost of sales.
Expenses relating to leases of low-value assets exclude short-term leases of low-value assets.
EXPENSES BY NATURE € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Cost of materials 11,798 10,421
Depreciation and amortization 1,220 1,141

Thereof: included within the cost of sales 51 79
Thereof: included within personnel expenses 10 11
Impairment losses 154 8
Reversals of impairment losses (4) (34)
Wages and salaries1 2,444 2,294
Social security contributions1 276 238
Pension expenses1 136 127
Personnel expenses1 2,856 2,659
Expense relating to short-term leases 14 11
Expense relating to leases of low-value assets 0 0
Expense relating to variable lease payments 118 140
1 Prior year adjusted to reflect adequate allocation of expenses.
Further information on expenses by function is provided in these Notes. ► SEE NOTE 31
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33 FINANCIAL INCOME/FINANCIAL EXPENSES

Financial result consists of the following:
FINANCIAL INCOME € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Interest income from financial instruments measured at amortized cost 23 12
Interest income from non-financial assets 0 0
Other 16 7
Financial income 39 19
FINANCIAL EXPENSES € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Interest expense on financial instruments measured at amortized cost 125 109
Thereof: interest expense on lease liabilities 83 66
Interest expense on other provisions and non-financial liabilities 12 2
Net foreign exchange losses 166 37
Other 17 4
Financial expenses 320 153
Interest income from financial instruments, measured at amortized cost, mainly consists of interest
income from bank deposits and loans calculated using the ‘effective interest method.’
Interest income/expense from financial instruments at fair value through profit or loss mainly includes
interest payments from investment funds as well as net interest payments from interest derivatives not
being part of a hedging relationship. Unrealized gains/losses from fair value measurement of such
financial assets are shown in other financial income or expenses.
Interest expense on financial instruments measured at amortized cost mainly includes interest on lease
liabilities as well as interest on borrowings calculated using the ‘effective interest method.’
Interest expense on other provisions, and non-financial liabilities in particular, include effects from the
measurement of other provisions at present value and interest on non-financial liabilities such as tax
payables.
Information regarding investments, borrowings, and financial instruments is also included in these Notes.
► SEE NOTE 14 ► SEE NOTE 17 ► SEE NOTE 29
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34 HYPERINFLATION
Due to the rapid devaluation of the Argentinian peso and the Turkish lira, Argentina, and Turkey are
considered to be hyperinflationary and as a result, the application of IAS 29 was adopted for the first time
in the third quarter of 2018 (Argentina) and the second quarter 2022 (Turkey). The financial statements of
those subsidiaries that have the Argentinian peso or Turkish lira as a functional currency had been
restated for the change in the general purchasing power retrospectively since January 1, 2018 (Argentina)
and January 1, 2022 (Turkey). The financial statements are based on a historical cost approach. The prior-
year figures of the Argentinian peso are stated in terms of the measuring unit current at
December 31, 2021. Pursuant to IAS 21 ‘Effects of Changes in Foreign Exchange Rates,’ paragraph 42, the
comparative amounts of the previous reporting period were not restated for the Turkish lira.
The Argentinian price index at December 31, 2022, was 15,047.61 (2021: 7,714.09). The price index in
Turkey at December 31, 2022, was 1,128.45 (2021: 686.95).
Both for Argentina and for Turkey, for the translation into the presentation currency (euro), all amounts
were translated at the closing rate at December 31, 2022. The net assets in the subsidiary’s local financial
statements were adjusted for changes in the price level.
35 INCOME TAXES
adidas AG and its German subsidiaries are subject to German corporate and trade taxes. For the years
ending December 31, 2022 and 2021, the statutory corporate income tax rate of 15% plus a surcharge of
5.5% thereon is applied to earnings. The municipal trade tax is approximately 11.4% of taxable income.
For non-German subsidiaries, deferred taxes are calculated based on tax rates that have been enacted or
substantively enacted by the closing date.
DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax assets and liabilities are offset if:
─ the entity has a legally enforceable right to set off current tax assets against current tax liabilities; and
─ the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same
taxation authority on either:
─ the same taxable entity; or
─ different taxable entities which intend either to settle current tax liabilities and assets on a net
basis, or to realize the assets and settle the liabilities simultaneously, in each future period in
which significant amounts of deferred tax liabilities or assets are expected to be settled or
recovered.
As a result they are presented in the consolidated statement of financial position as follows:
DEFERRED TAX ASSETS/LIABILITIES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Deferred tax assets 1,216 1,263
Deferred tax liabilities (135) (122)
Deferred tax assets, net 1,082 1,141
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The movement of deferred taxes net is as follows:
MOVEMENT OF DEFERRED TAXES € IN MILLIONS
2022 2021
Deferred tax assets, net as at January 1 1,141 992
Deferred tax income (76) (112)
Change in consolidated companies 23 –
Reclassification to assets/liabilities classified as held for sale – 278
Change in deferred taxes attributable to remeasurements of defined benefit plans
(44) (13)
recorded in other comprehensive income1
Change in deferred taxes attributable to the change in the effective portion of the
fair value of qualifying hedging instruments recorded in other comprehensive 21 (26)
income2
Deferred tax assets, net as at December 31 1,082 1,141
1 See Note 23.

2 See Note 28.
Gross company deferred tax assets and liabilities after valuation allowances, but before appropriate
offsetting, are attributable to the items detailed in the table below:
DEFERRED TAXES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Non-current assets 462 460
Current assets 245 235
Liabilities and provisions 852 953
Accumulated tax loss carry-forwards 126 178
Deferred tax assets 1,685 1,826
Non-current assets 421 527
Current assets 71 114
Liabilities and provisions 111 44
Deferred tax liabilities 603 685
Deferred tax assets, net 1,082 1,141
Deferred tax assets are recognized only to the extent that the realization of the related benefit is probable.
For the assessment of probability, in addition to past performance and the respective prospects for the
foreseeable future, appropriate tax structuring measures are also taken into consideration.
Deferred tax assets for which the realization of the related tax benefits is not probable increased from
€ 222 million to € 406 million for the year ending December 31, 2022. These amounts mainly relate to tax
losses carried forward and unused tax credits of the US tax group, which begin to expire in 2029. The
remaining unrecognized deferred tax assets relate to subsidiaries operating in markets where the
realization of the related tax benefit is not considered probable.
adidas does not recognize deferred tax liabilities for unremitted earnings of non-German subsidiaries to
the extent that they are expected to be permanently invested in international operations. These earnings,
the amount of which cannot be practicably computed, could become subject to additional tax if they were
remitted as dividends or if the company were to sell its shareholdings in the subsidiaries.
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TAX EXPENSES
Tax expenses are split as follows:
INCOME TAX EXPENSES € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Current tax expenses 156 377
Deferred tax income (23) (17)
Income tax expenses 134 360
The deferred tax income includes tax expense of € 6 million in total (2021: tax income of € 5 million)
related to the origination and reversal of temporary differences.
The company’s applicable tax rate is 27.4% (2021: 27.4%), being the applicable income tax rate of
adidas AG.
The company’s effective tax rate differs from the applicable tax rate of 27.4% as follows:
TAX RATE RECONCILIATION
Year ending Dec. 31, 2022 Year ending Dec. 31, 2021
€ in millions in % € in millions in %
Expected income tax expenses 106 27.4 507 27.4
Tax rate differentials (59) (15.1) (155) (8.4)
Non-deductible expenses (160) (41.2) (7) (0.4)
Losses for which benefits were not
recognizable and changes in valuation 251 64.6 (38) (2.0)
allowances
Changes in tax rates (7) (1.7) 2 0.1
Other, net (3) (0.6) (4) (0.2)
Withholding tax expenses 5 1.2 55 3.0
Income tax expenses 134 34.5 360 19.4
In 2022, the effective tax rate was 34.5%. The effective tax rate in 2021 was 19.4%.
The line item ‘Non-deductible expenses’ includes tax expense/benefits relating to tax-free income,
movements in provisions for uncertain tax positions and tax expense/benefits relating to prior periods. In
2022, the tax benefit relating to prior periods is € 118 million (2021: tax income of € 57 million).
For 2022, the line item ‘Losses for which benefits were not recognizable and changes in valuation
allowances’ mainly relates to valuation allowances in respect of the US, Russia and Argentina
(€ 278 million) and a release to the valuation allowance in Brazil (€ 31 million). For 2021, this line item
mainly related to changes in valuation allowances for the US, Argentina, Brazil and Hong Kong.
For 2022, the total tax benefit arising from previously unrecognized tax losses, credits or temporary
differences in prior years that is used to reduce current tax expense was € 5 million, mainly relating to the
US (2021: € 15 million).
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For 2022, the line item ‘Changes in tax rates’ mainly reflects a tax rate increase in Switzerland. For 2021,
this line item mainly reflected tax rate reduction in Argentina, France and Switzerland.
36 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.
EARNINGS PER SHARE
Continuing operations Discontinued operations Total

Year ending Year ending Year ending Year ending Year ending Year ending
Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021
Net income from continuing
254 1,492 – – – –
operations (€ in millions)
Net income attributable to non-
26 42 – – – –
controlling interests (€ in millions)
Net income attributable to
228 1,450 384 666 612 2,116
shareholders (€ in millions)
Weighted average number of shares 183,263,629 194,172,984 183,263,629 194,172,984 183,263,629 194,172,984
Basic earnings per share (€) 1.25 7.47 2.09 3.43 3.34 10.90
Net income attributable to

228 1,450 384 666 612 2,116
shareholders (€ in millions)
Interest expense on convertible bond,
– – – – – –
net of taxes (€ in millions)
Net income used to determine
diluted earnings per share 228 1,450 384 666 612 2,116
(€ in millions)
Weighted average number of shares 183,263,629 194,172,984 183,263,629 194,172,984 183,263,629 194,172,984
Weighted assumed conversion of the
– – – – – –
convertible bond
Dilutive effect of share-based
4,458 5,097 4,458 5,097 4,458 5,097
payments
Weighted average number of shares
183,268,087 194,178,081 183,268,087 194,178,081 183,268,087 194,178,081
for diluted earnings per share
Diluted earnings per share (€) 1.25 7.47 2.09 3.43 3.34 10.90
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ADDITIONAL INFORMATION
37 SEGMENTAL INFORMATION
adidas operates predominantly in one industry segment – the design, distribution, and marketing of
athletic and sports lifestyle products.
As at December 31, 2022, 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.
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, and 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 represent 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. ► SEE NOTE 02
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, without considering headquarter costs and central
expenditure 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. Depreciation, amortization, impairment losses (except
for goodwill), and reversals of impairment losses as well as capital expenditure for tangible and intangible
assets are part of the segmental reporting, even though segmental assets do not contain tangible and
intangible assets. Depreciation and amortization as well as impairment losses and reversals of
impairment losses not directly attributable to a segment are presented under line items ‘HQ’ and
‘Consolidation’ in the reconciliations.
Segmental liabilities only contain accounts payable from operating activities as there are no other liability
items reported regularly to the chief operating decision-maker.
Interest income and interest expenses as well as income taxes are not allocated to the reportable
segments and are not reported separately to the chief operating decision-maker.
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SEGMENTAL INFORMATION I € IN MILLIONS

Net sales Segmental Segmental Segmental
(third parties)1 operating profit1 assets2 liabilities2
2022 2021 2022 2021 2022 2021 2022 2021
EMEA 8,550 7,760 1,678 1,658 2,960 2,100 294 226
North America 6,398 5,105 989 960 2,588 1,521 139 109
Greater China 3,179 4,597 322 1,194 1,361 1,535 218 214
Asia-Pacific 2,241 2,180 486 457 712 521 78 65
Latin America 2,110 1,446 474 265 812 481 128 86
Reportable segments 22,478 21,088 3,949 4,533 8,434 6,158 856 700
Other Businesses 150 145 27 28 49 43 4 5
Total 22,628 21,234 3,976 4,561 8,483 6,201 861 705
1 Year ending December 31.

2 At December 31.
SEGMENTAL INFORMATION II € IN MILLIONS

Impairment losses
Capital Depreciation and and reversals of
expenditure1 amortization1 impairment losses1
2022 2021 2022 2021 2022 2021
EMEA 146 129 335 289 116 (24)
North America 73 33 156 138 (1) (1)
Greater China 78 127 256 218 6 (1)
Asia-Pacific 52 36 134 77 5 1
Latin America 29 22 56 127 – –
Reportable segments 378 346 937 850 126 (26)
Other Businesses 1 2 2 4 1 –
Total 379 349 940 855 126 (26)
1 Year ending December 31.
The following table shows the net sales (with third parties) broken down by segment and product group.
NET SALES (WITH THIRD PARTIES) € IN MILLIONS
EMEA North America Greater China Asia-Pacific

2022 2021 2022 2021 2022 2021 2022 2021
Footwear 4,529 4,038 3,637 2,843 1,709 2,408 1,177 1,091
Apparel 3,464 3,273 2,239 1,905 1,379 2,057 917 947
Gear 556 449 522 357 91 133 148 143
Total 8,550 7,760 6,398 5,105 3,179 4,597 2,241 2,180
Latin America Reportable segments Other Businesses Total

2022 2021 2022 2021 2022 2021 2022 2021
Footwear 1,291 895 12,344 11,275 59 61 12,402 11,336
Apparel 671 468 8,670 8,650 62 61 8,732 8,710
Gear 148 83 1,464 1,164 29 23 1,493 1,187
Total 2,110 1,446 22,478 21,088 150 145 22,628 21,234
RECONCILIATIONS
The following tables include reconciliations of segmental information to the aggregate numbers of the
consolidated financial statements, taking into account items which are not directly attributable to a
segment.
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NET SALES (THIRD PARTIES) € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Reportable segments 22,478 21,088
Other Businesses 150 145
Segmental net sales 22,628 21,234
HQ / Consolidation (117) –
Total net sales 22,511 21,234
OPERATING PROFIT € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Operating profit for reportable segments 3,949 4,533
Operating profit for Other Businesses 27 28
Segmental operating profit 3,976 4,561
HQ (2,169) (1,716)
Central expenditure for marketing (934) (814)
Consolidation (203) (45)
Operating profit 669 1,986
Financial income 39 19
Financial expenses (320) (153)
Income before taxes 388 1,852
CAPITAL EXPENDITURE € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Reportable segments 379 346
HQ 316 318
Total 696 667
DEPRECIATION AND AMORTIZATION € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Reportable segments 937 856
HQ 280 283
Total 1,220 1,141
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IMPAIRMENT LOSSES AND REVERSALS OF IMPAIRMENT LOSSES € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Reportable segments 126 (26)
HQ 23 (1)
Total 150 (27)
ASSETS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Accounts receivable and inventories of reportable segments 8,434 6,158
Accounts receivable and inventories of Other Businesses 49 43
Segmental assets 8,483 6,201
Non-segmental accounts receivable and inventories 20 (17)
Current financial assets 1,811 4,574
Other current assets 1,418 1,153
Non-current assets 8,563 8,193
Assets classified as held for sale – 2,033
Total 20,296 22,137
LIABILITIES € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Accounts payable of reportable segments 856 700
Accounts payable of Other Businesses 4 5
Segmental liabilities 860 705
Non-segmental accounts payable 2,048 1,589
Current financial liabilities 1,594 966
Other current liabilities 4,755 5,112
Non-current liabilities 5,688 5,334
Liabilities classified as held for sale – 594
Total 14,945 14,300
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GEOGRAPHICAL INFORMATION
Net sales (third parties) are shown in the geographic market in which the net sales are realized. Non-
current assets are allocated to the geographic market based on the domicile of the respective subsidiary
independent of the segmental structure and consist of tangible assets, goodwill, trademarks, other
intangible assets, right-of-use assets and other non-current assets.
GEOGRAPHICAL INFORMATION BY MARKET € IN MILLIONS
Net sales (third parties) Non-current assets

Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021
EMEA 8,567 7,887 3,238 3,222
North America 6,398 5,110 1,367 1,254
Greater China 3,195 4,597 1,136 1,126
Asia-Pacific 2,241 2,193 809 762
Latin America 2,109 1,446 160 115
Total 22,511 21,234 6,710 6,479
GEOGRAPHICAL INFORMATION BY COUNTRY € IN MILLIONS
Net sales (third parties) –

continuing operations Non-current assets
Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021
Germany, Europe 1,558 1,360 1,367 1,313
USA, North America 5,959 4,803 1,269 1,169
38 ADDITIONAL CASH FLOW INFORMATION

In 2022, net cash used in operating activities compared to the prior year results was primarily due to an
decrease in income before taxes and an increase in operating working capital requirements.
The net cash generated from investing activities in 2022 is mainly due to the sale of the Reebok business.
This is offset by payments for other intangible assets and property, plant, and equipment as well as the
change from purchase of/proceeds from investments and other long-term assets.
Net cash used in financing activities mainly related to dividend paid to shareholders of adidas AG,
repurchase of treasury shares and the repayments of lease liabilities. This is offset by two newly issued
bonds which were issued in the financial year.
NET CASH (USED IN)/GENERATED FROM DISCONTINUED OPERATIONS € IN MILLIONS

Dec. 31, 2022 Dec. 31, 2021
Net cash (used in)/generated from operating activities (85) 320
Net cash used in investing activities – (9)
Net cash used in financing activities (6) (39)
Net cash (used in)/generated from discontinued operations (91) 272
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In 2022, the following changes in financial liabilities impacted the net cash used in financing activities:
IMPACT OF CHANGE IN FINANCIAL LIABILITIES ON NET CASH USED IN FINANCING ACTIVITIES € IN MILLIONS
Non-cash effects
Net Transfer
(payments) / IFRS 16 within Effect of
proceeds in lease Fair value financial exchange
Jan. 1, 2022 the period obligations adjustments liabilities Other rates Dec. 31, 2022
Short-term
29 (19) – – 513 4 – 527
borrowings
Long-term
2,466 994 – – (513) (1) – 2,946
borrowings
Lease liabilities 2,836 (719) 887 – – (9) (9) 2,986
Total 5,331 256 887 – 0 (6) (9) 6,459
IMPACT OF CHANGE IN FINANCIAL LIABILITIES ON NET CASH USED IN FINANCING ACTIVITIES € IN MILLIONS
Non-cash effects
Net
(payments) / IFRS 16 Transfer to Effect of
proceeds in lease Fair value liabilties exchange
Jan. 1, 2021 the period obligations adjustments held for sale Other rates Dec. 31, 2021
Short-term
686 (679) – – – 21 0 29
borrowings
Long-term
2,482 – – – – (16) – 2,466
borrowings
Lease liabilities 2,722 (645) 780 – (147) 25 101 2,836
Total 5,890 (1,324) 780 – (147) 30 101 5,331
39 OTHER FINANCIAL COMMITMENTS AND CONTINGENCIES

OTHER FINANCIAL COMMITMENTS
adidas has other financial commitments for promotion and advertising contracts, which mature as follows:
FINANCIAL COMMITMENTS FOR PROMOTION AND ADVERTISING € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Within 1 year 1,251 1,345
Between 1 and 5 years 2,974 3,352
After 5 years 717 1,015
Total 4,942 5,712
Commitments with respect to promotion and advertising contracts maturing after five years have
remaining terms of up to 22 years from December 31, 2022.
Compared to December 31, 2021, no new major signings or prolongations for promotion and advertising
contracts occurred, hence the decrease for the commitments mainly reflects the yearly amortization.
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adidas has other financial commitments for leasing and other rental obligations which mature as follows:
FINANCIAL COMMITMENTS FOR OTHER CONTRACTS € IN MILLIONS
Dec. 31,2022 Dec. 31,2021

Within 1 year 80 84
Between 1 and 5 years 197 238
After 5 years 79 74
Total 356 396
The contracts regarding these leases with expiration dates of between one and 10 years partly include
renewal options and price adjustment clauses.
SERVICE ARRANGEMENTS
adidas has outsourced certain logistics and information technology functions, for which it has entered into
long-term contracts. Financial commitments under these contracts mature as follows:
FINANCIAL COMMITMENTS FOR SERVICE ARRANGEMENTS € IN MILLIONS
Dec. 31, 2022 Dec. 31, 2021

Within 1 year 397 276
Between 1 and 5 years 481 361
After 5 years 3 29
Total 881 666
CONTINGENT LIABILITIES
As of December 31, 2022, contingent liabilities exists in connection with guarantees from leases in the
amount of € 73 million. These mainly relate to the Reebok business and could not be terminated upon its
sale.
LITIGATION AND OTHER LEGAL RISKS

The company is currently engaged in various lawsuits resulting from the ordinary course of business,
mainly in connection with commercial agreements as well as intellectual property rights and partnership
agreements. The risks regarding these lawsuits are covered by provisions to the extent a reliable estimate
of the potential liability can be made. In the opinion of Management, the ultimate liabilities resulting from
such claims will not materially affect the assets, liabilities, financial position and profit or loss of the
Group. ► SEE NOTE 19
The company is in dispute with the local revenue authorities in South Africa (SARS) with regard to the
customs value of imported products. In June 2018, SARS issued a ruling claiming a customs payment
including interest and penalties for the years 2007 to 2013 in an amount of ZAR 1,871 million (€ 103
million). adidas has applied for a suspension of the payment demand and in 2019 instituted legal action
against the decision before the High Court in South Africa. In case the court rules in favor of SARS, adidas
will appeal against the decision to the Supreme Court of South Africa. Based on external legal opinions,
Management currently believes that it is more likely than not that the claim made by SARS will eventually
not result in an outflow of resources. Therefore, a provision was not recognized in the consolidated
statement of financial position.
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In connection with the financial irregularities of Reebok India Company in 2012, various legal uncertainties
were identified. At this stage, the respective ultimate risk cannot be determined conclusively. However,
based on opinions obtained from external counsel and internal assessments, Management assumes that
the possibility of any outflow in settlement is remote and therefore the effects will not have any material
negative influence on the assets, liabilities, financial position and profit of the company.
In October 2018, a former employee of the company’s US subsidiary was convicted of wire fraud in
connection with unauthorized payments to certain college basketball players or their families during the
former employee’s time at the US subsidiary. The company’s US subsidiary, with the full support of the
company, has cooperated with the prosecutors, including by conducting an internal investigation with the
assistance of outside counsel. Management believes that the actions of its former employee will not have
any material influence on the assets, liabilities, financial position and profit or loss of the company.
In 2012, both adidas and Nike launched knitted upper footwear products. Nike’s products were labeled
‘Flyknit,’ adidas’ shoes ‘Primeknit.’ Since 2012, both companies have initiated various legal proceedings in
Europe and the US relating to the other company’s patents in the knitted upper space.
In December 2021, Nike filed a complaint with the US International Trade Commission (ITC) alleging that
certain adidas footwear products infringe six US patents covering Nike’s Flyknit technology. Nike
requested in particular that the ITC (i) ban the import of adidas footwear products infringing Nike’s six US
Flyknit patents into the US and (ii) issue a permanent cease-and-desist order directing adidas to refrain
from importing, distributing, marketing, offering or selling knitted footwear products in the US that
infringe Nike’s six US Flyknit patents.
In parallel, Nike also filed a complaint for patent infringement against adidas AG, adidas North America,
Inc., and adidas America, Inc. with the US District Court in Portland/Oregon. Nike argues that certain
adidas footwear products using knitted uppers infringe nine of Nike’s US Flyknit technology patents. Nike
seeks (i) an injunction from the court preventing adidas from infringing Nike’s patents and (ii) monetary
damages from adidas for past sales of Primeknit products in the US. The District Court proceeding was
stayed until the ITC has rendered a decision.
The dispute between adidas and Nike was settled in August 2022 and, upon request of both parties, the ITC
and the US District Court in Portland dismissed the pending cases.
In connection with the termination of the Yeezy partnership, adidas has initiated arbitration proceedings
against Ye and entities controlled by him (Defendants) claiming, among others, damages. In this context,
Defendants filed certain counterclaims against adidas. Management currently believes that these
counterclaims will not result in any cash outflow.
40 RELATED PARTY DISCLOSURES

According to the definitions of IAS 24 ’Related Party Disclosures,’ the Supervisory Board and the Executive
Board of adidas AG have been identified as related parties who receive compensation essentially in
connection with their function as key management personnel. These consolidated financial statements
contain detailed information about the compensation of the Supervisory Board and the Executive Board of
adidas AG. ► SEE NOTE 41
In addition, a brand ambassador agreement existed during the financial year between adidas International,
Inc. and the Supervisory Board member Jackie Joyner-Kersee. For her services under this agreement,
Jackie Joyner-Kersee in 2022 received a fixed compensation of US $ 0.1 million (2021: US $ 0.1 million). As
of the reporting date, there were no outstanding balances in this context.
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Members of the Executive Board and Supervisory Board and their close family members are free to buy or
sell shares of the Company on the market. The shares held by this group of persons are regularly entitled
to dividends, so that the dividend, as resolved by the 2022 Annual General Meeting, was paid out per share
held to these persons in 2022. The employee representatives on the Supervisory Board are also entitled to
participate in the adidas AG employee stock purchase program. Shares are purchased at a discount of 15%
on the same terms as for other employees. Participants who hold their self-acquired shares for at least
one year will subsequently receive one share for every six shares held without additional payment,
provided they are still adidas employees at that time. ► SEE NOTE 26
Members of the Executive Board and Supervisory Board may purchase products from the Company in the
ordinary course of business.
In addition to their compensation for their Supervisory Board activities, the employee representatives on
the Supervisory Board continued to receive salaries under their normal employment contracts. These
were not influenced by their Supervisory Board activities.
A schedule of the adidas AG subsidiaries included in the consolidated financial statements is shown in
Attachment I to the notes to the consolidated financial statements. Balances and transactions between the
Company and its subsidiaries that are related parties have been eliminated in consolidation and are not
presented in this note. ► SEE SHAREHOLDINGS
In addition, adidas Pension Trust e.V., a registered association, is regarded as a related party. Based on a
Contractual Trust Arrangement, adidas Pension Trust e.V. manages the plan assets in the form of an
administrative trust to fund and protect part of the pension obligations of adidas AG. Employees, senior
executives, and members of the Executive Board of adidas AG can be members of the registered
association. adidas AG has the right to claim a refund of pension payments from adidas Pension Trust e.V.
under specific contractually agreed conditions. As of December 31, 2022, adidas Pension Trust e. V. held
plan assets of € 331.7 million (2021: € 355.1 million) in trust for adidas AG. In 2022, adidas AG made lease
payments of € 6.3 million (2021: € 6.0 million) to adidas Pension Trust e.V. As of December 31, 2022, there
were no outstanding liabilities to adidas Pension Trust e.V. (2021: € 0.1 million). There were outstanding
receivables from adidas Pension Trust e.V. in the amount of € 0.1 million (2021: € 0). ► SEE NOTE 24
41 OTHER INFORMATION
EMPLOYEES
The average numbers of employees are as follows:
EMPLOYEES

Dec. 31, 2022 Dec. 31, 2021
Own retail 31,698 32,678
Sales 3,204 3,359
Logistics 8,530 8,558
Marketing 4,742 4,481
Central administration 5,287 4,917
Production 520 479
Research and development 1,051 954
Information technology 4,810 3,535
Total 59,842 58,959
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ACCOUNTANT SERVICE FEES FOR THE AUDITOR OF THE FINANCIAL STATEMENTS

The expenses for the audit fees comprise the expenses of adidas AG, Herzogenaurach, as well as all
German subsidiaries of adidas AG. In 2022, the expenses for the professional audit service fees for the
auditor KPMG AG Wirtschaftsprüfungsgesellschaft amounted to € 2.0 million (2021: € 1.6 million) thereof
related to the prior year € 0.2 million (2021: € 0.3 million).
Expenses for tax consultancy services provided by the auditor, for other confirmation services provided by
the auditor, and for other services provided by the auditor amounted to € 0 million (2021: € 0.1 million),
€ 0.3 million (2021: € 0.3 million) and € 0.2 million (2021: € 0.3 million), respectively.
Expenses for the audit fees of KPMG AG Wirtschaftsprüfungsgesellschaft were mainly related to the audits
of both the consolidated financial statements and the financial statements of adidas AG, as well as the
audit of the financial statements of its subsidiary, adidas CDC Immobilieninvest GmbH.
Other confirmation services consist of confirmations required by law or contractually agreed, such as the
audit of the non-financial statement, the European Market Infrastructure Regulation (EMIR) audits
according to § 20 WpHG, audits according to the German Packaging Ordinance (Verpackungsverordnung –
VerpackV), the issuance of comfort letters and other contractually agreed-upon confirmation services.
Other services relate in particular to status checks for non-financial key performance indicators.
REMUNERATION OF THE SUPERVISORY BOARD AND THE EXECUTIVE BOARD OF ADIDAS AG

Supervisory Board
Pursuant to the Articles of Association of adidas AG, the Supervisory Board members’ total annual
payment, including attendance fees, amounted to € 2.8 million (2021: € 2.2 million).
Members of the Supervisory Board were not granted any loans or advance payments in 2022.
The consolidated financial statements contain additional information on an existing brand ambassador
agreement between adidas International, Inc. and the supervisory board member Jackie Joyner-Kersee.
► SEE NOTE 40
Executive Board
In 2022, the overall compensation of the members of the Executive Board totaled € 22.0 million
(2021: € 30.8 million), € 6.5 million thereof relates to short-term benefits (2021: € 13.1 million). No share-
based payment was granted in 2022 (2021: € 14.2 million). Post-employment benefits (costs for accrued
pension entitlements for members of the Executive Board) totaled € 3.5 million in 2022 (2021:
€ 3.5 million). The present value of the pension commitments for members of the Executive Board
amounted to € 15.3 million in 2022 (2021: € 15.3 million).
As of December 31, 2022, there were no provisions for short-term and long-term variable remuneration
components for members of the Executive Board (2021: € 13.4 million).
In agreement with the Supervisory Board, Kasper Rorsted resigned from his position as CEO effective
November 11, 2022. For the remaining term of his service contract from November 12 to December
31, 2022, the contractual basic salary totaling € 0.3 million was also granted. In addition, a one-time
severance payment of € 12.0 million gross was agreed as compensation for the early termination of his
service contract, which was reported as a liability as of December 31, 2022 and is included in the total
remuneration as termination benefits. The termination agreement also provides for the payment of
compensation for a 18-month non-compete clause in the employment contract in the gross amount of
€ 0.2 million per month.
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Current members of the Executive Board were not granted any loans or advance payments in 2022.
Overall compensation of the members of the Executive Board and Board of Directors §314 (1) i.V.m.
§315e HGB
The overall compensation of the members of the Executive Board in the 2022 financial year amounted to
€ 6.5 million (2021: € 13.1 million). The Executive Board was not granted an LTIP bonus for the 2022
financial year (2021: € 14.2 million). A granted LTIP bonus must be invested in full in the acquisition of
adidas AG shares after deduction of taxes and social security contributions. These shares are subject to a
lock-up period which ends in the fourth financial year after the performance year. The LTIP payout amount
is considered earned only after expiry of the lock-up period and only then can the Executive Board
members dispose of the shares at their own discretion. By contrast, the amount deducted for income tax
and social security contributions is already fully earned at the time of payout following the adoption of the
consolidated financial statements by the Supervisory Board. The lower total remuneration in comparison
to the previous year is mainly attributable to the fact that the Executive Board members were not granted
a performance bonus in 2022.
The total annual remuneration to be paid to the members of the Supervisory Board in accordance with the
Articles of Association of adidas AG, including attendance fees, totaled € 2.8 million (prior year:
€ 2.2 million).
Former members of the Executive Board and their surviving dependents received a total of € 16.7 million
in benefits in the 2022 financial year (prior year: € 4.3 million). This amount includes the one-time
severance payment of € 12.0 million gross as compensation for the early termination of Kasper Rorsted's
employment contract, which was reported as a liability as of December 31, 2022.
Provisions for pension entitlements have been created for the former members of the Executive Board
who resigned on or before December 31, 2005 and their surviving dependents, in an amount of
€ 28.6 million in total as at December 31, 2022 before offsetting with the assets of the “adidas Pension
Trust e.V.” (prior year: € 43.0 million). There are pension commitments towards six former Executive
Board members who resigned after December 31, 2005, which are covered by a pension fund or a pension
fund in combination with a reinsured pension trust fund. From this, indirect obligations amounting to
€ 35.0 million (prior year: € 47.0 million) arise for which no provisions were created due to financing
through the pension fund and pension trust fund. Provisions for pension entitlements have been created
for two former members of the Executive Board who resigned on or after December 31, 2019 in an amount
of € 3.1 million (2021: 3.9 million).
COMPANIES OPTING FOR EXEMPTION UNDER § 264 (3) HGB

The subsidiary adidas CDC Immobilieninvest GmbH, Herzogenaurach, is opting for exemption under
§ 264 (3) HGB.
42 INFORMATION RELATING TO THE GERMAN CORPORATE GOVERNANCE CODE

INFORMATION PURSUANT TO § 161 GERMAN STOCK CORPORATION ACT (AKTIENGESETZ – AKTG)
In December 2022, the Executive Board and Supervisory Board of adidas AG issued an updated Declaration
of Compliance in accordance with § 161 AktG and made it permanently available to the shareholders. The
full text of the Declaration of Compliance is available on the company’s corporate website.
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43 EVENTS AFTER THE BALANCE SHEET DATE

As part of the publication of the financial guidance on February 9, 2023, it was announced that the
company continues to review future options for the utilisation of its Yeezy inventory. Should the company
irrevocably decide not to repurpose any of the existing Yeezy products going forward, this would result in
the write-off of the existing Yeezy inventory and would lower the company’s operating profit in fiscal year
2023 by € 0.5 billion. This effect is, just like the negative revenue impact of around € 1.2 billion and the
corresponding adverse operating profit effect of around € 0.5 billion, included in the financial guidance for
the fiscal year 2023. As of December 31, 2022, the company assumed that the inventories will be utilized
and therefore they are classified as recoverable. If a decision would have been made before the reporting
date that the inventories would not be utilized, this would have resulted in an write-off on inventories of
€ 0.4 billion and a provision for onerous contracts of € 0.1 billion in 2022. It would not have had any other
significant impact on the assets, liabilities, financial position, and profit or loss of the company (e.g.
measurement of goodwill).
No other company-specific subsequent events are known that might have a material influence on the
assets, liabilities, financial position, and profit or loss of the company.
DATE OF PREPARATION
The Executive Board of adidas AG prepared and approved the consolidated financial statements for
submission to the Supervisory Board on February 21, 2023. It is the Supervisory Board’s task to examine
the consolidated financial statements and give their approval.
Herzogenaurach, February 21, 2023
The Executive Board of adidas AG
BJØRN GULDEN 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
PEOPLE AND CULTURE
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ANNUAL REPORT 2022

CONSOLIDATED STATEMENT OF FINANCIAL

Note Dec. 31, 2022 Dec. 31, 2021 Change in %

Property, plant, and equipment 10 2,279 2,256 1

Total assets 20,296 22,137 (8)

ADIDAS AG CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) € IN MILLIONS

Note Dec. 31, 2022 Dec. 31, 2021 Change in %

Liabilities and equity

Long-term borrowings 17 2,946 2,466 19

Share capital 179 192 (7)

Non-controlling interests 28 360 318 13

Total equity 5,351 7,837 (32)

Total liabilities and equity 20,296 22,137 (8)

CONSOLIDATED INCOME STATEMENT

Year ending Year ending

ADIDAS AG CONSOLIDATED INCOME STATEMENT (IFRS) € IN MILLIONS

Year ending Year ending

CONSOLIDATED STATEMENT OF COMPREHENSIVE

Year ending Year ending

Other comprehensive income 18 573

Total comprehensive income 656 2,731

Attributable to shareholders of adidas AG 610 2,650

CONSOLIDATED STATEMENT OF CHANGES IN

ADIDAS AG CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS) € IN MILLIONS

1 Disclosure adjustment from previous years.

CONSOLIDATED STATEMENT OF CASH FLOWS

Year ending Year ending

ADIDAS AG CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS) € IN MILLIONS

Year ending Year ending

Effect of exchange rates on cash (19) 57

─ Annual Improvements to IFRS standards 2018 – 2020:

─ IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a

─ Amendments to – IAS 37 Onerous Contracts: Cost of Fulfilling a Contract (effective date:

─ Amendments to IAS 8: Definition of Accounting Estimates (effective date: January 1, 2023): In

─ Amendments to IAS 1: Classification of Liabilities as Current or Non-current (effective date:

02 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NUMBER OF CONSOLIDATED SUBSIDIARIES

January 1 120 121

First-time consolidated subsidiaries 1 2

A schedule of the shareholdings of adidas AG is shown in Attachment I to the consolidated financial

OVERVIEW OF SELECTED SUBSEQUENT MEASUREMENT PRINCIPLES

Subsequent measurement principle

The subsequent measurement of financial assets is as follows:

OVERVIEW OF FINANCIAL ASSET SUBSEQUENT MEASUREMENT PRINCIPLES ACCORDING TO IFRS 9

In the individual financial statements of subsidiaries, monetary items denominated in non-functional

Average rates for the year

DERIVATIVE FINANCIAL INSTRUMENTS

CASH AND CASH EQUIVALENTS

OTHER FINANCIAL ASSETS

LONG-TERM FINANCIAL ASSETS

─ represents a separate major line of business or geographic area of operations,

ASSETS/LIABILITIES AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE

Additional disclosures are provided in these Notes. ► SEE NOTE 03

PROPERTY, PLANT, AND EQUIPMENT

Estimated useful lives are as follows:

ESTIMATED USEFUL LIVES OF PROPERTY, PLANT, AND EQUIPMENT

IMPAIRMENT LOSSES ON NON-FINANCIAL ASSETS

IMPAIRMENT LOSSES ON FINANCIAL ASSETS

adidas does not own any investment property.