A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics. Equity Report Adidas AG Ludwig Schwarzmayr (646) A Project carried out on the field lab course, under the supervision of: Prof. Rosario André 07.01.2015
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A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics.
Equity Report Adidas AG
Ludwig Schwarzmayr (646)
A Project carried out on the field lab course, under the supervision of:
Prof. Rosario André
07.01.2015
THIS REPORT WAS PREPARED BY LUDWIG SCHWARZMAYR, A MASTERS IN FINANCE STUDENT OF THE NOVA SCHOOL OF BUSINESS
AND ECONOMICS, EXCLUSIVELY FOR ACADEMIC PURPOSES. THIS REPORT WAS SUPERVISED BY ROSÁRIO ANDRÉ WHO REVIEWED THE VALUATION METHODOLOGY AND THE FINANCIAL MODEL. (SEE DISCLOSURES AND DISCLAIMERS AT END OF DOCUMENT)
See more information at WWW.NOVASBE.PT Page 1/27
MASTERS IN FINANCE
EQUITY RESEARCH
! We confirm our previous buy recommendation with a
lower target price for the financial year 2015 of EUR 61.81. The
stock currently trades at a P/E ratio of 16.2x – a 24.3% discount
over its peers’ median. According to our analysis this is
exaggerated given Adidas’ strong cash flows and ability to
generate value to its shareholders.
! Adidas’ profits and cashflows come from the disposable
income of the people in the markets it serves. As a result, regions
with high disposable income, measured by GNI levels, and GDP
growth offer growth opportunities for the company. Adidas’ core
markets suffered strongly from the financial crisis. The company’s
inability to compete with Nike in the US market comes costly. The
slide of the Rubel additionally puts pressure on the revenues.
! Management announced to increase marketing initiatives
especially in the US, to gain much-needed market share. Also it
will lower the investment exposure on the Russian market by
closing more shops than re-opening them. On top a share buy
back program with a volume of EUR 1.5 billion was announced in
the second half of 2014
! Our YE15 target price is based on a DCF analysis. The
target price of EUR 61.81 implies an upside of 9.7% and a total
expected shareholder return of 15.4% on the current stock price.
Company description
Adidas AG is a German manufacturer of sports equipment, comprising the brands adidas, Reebok, TaylorMade, Rockport and CCM. The company was founded in 1949 by Adolf Dassler and has been listed on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) since 1995. Adidas is listed in the German stock market index DAX (Deutscher Aktienindex).
ADIDAS AG COMPANY REPORT SPORTS APPAREL 07 JANUARY 2015
Source: Adidas AG Annual Report 2013, Analyst’s Estimates
-20% 0% 20% 40% 60% 80% 100%
02.01.12 02.01.13 02.01.14
MSCI World DAX Adidas AG
speralta
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ADIDAS AG COMPANY REPORT
PAGE 2/27
Table of Contents
I. INVESTMENT CASE ............................................................................... 3!II. UNDERSTANDING THE BUSINESS ..................................................... 4!
A) BUSINESS OVERVIEW ........................................................................................ 4!B) ECONOMIC OVERVIEW ...................................................................................... 6!
Economic Development ........................................................................ 6!Peer Companies .................................................................................... 8!
C) BRAND OVERVIEW .......................................................................................... 10!adidas .................................................................................................. 11!Reebok ................................................................................................. 11!TaylorMade-adidas Golf .................................................................... 12!Rockport & Reebok-CCM Hockey ...................................................... 12!
D) DISTRIBUTION CHANNELS .............................................................................. 12!Wholesale ............................................................................................ 13!Retail ................................................................................................... 13!
C) BUSINESS FORECASTS ..................................................................................... 18!Strategic Focus ................................................................................... 18!
** revenue share 2014-16 held constant, based on 2013 share
PEER COMPANIES
The total apparel, footwear and accessories industry is estimated to have total
revenues of about EUR 260 billion in 2014, as previously mentioned. This
industry is strongly fragmented with numerous players. Adidas specialized itself
on the athletic apparel and footwear market. In an afford to identify the most
important competitors of Adidas a list of companies doing business in the athletic
apparel and footwear sector was generated from S&P Capital IQ (see figure 15).
This list comprises only publicly listed companies, sorted by 2013 revenues. The
revenues shown in this list are the latest LTM (last 12 month) numbers available
for each company. While Adidas accounts for about 27% of the total revenues of
the companies identified in figure 15, Nike accounts for approximately 45%. The
total revenue of the identified companies makes up for about 20% of the total
apparel, footwear and accessories market size estimated by Bloomberg.
When comparing the overall financial performance of the six peer companies,
one can easily see Nike and Adidas’ leading position within the group. With
approximately as much sales (EUR 23,931 million) as the aggregate sales of the
in EUR Mio Country Revenue Nike Inc. US 23.931 Adidas AG Germany 14.594 ASICS Corp. Japan 3.185 Puma SE Germany 2.920 Under Armour Inc. US 2.276 Skechers USA Inc. US 1.790 Feng Tay Enterprises Taiwan 1.165 ANTA Sports Products China 944 Li Ning Company Ltd. China 711 361 Degrees Int. Ltd. China 432 Vulcabras|azaleia SA Brazil 424 Delta Apparel Inc. US 357 Peak Sport Products China 321 China Sports Int. Ltd. China 109 K-Star Sports Ltd. Singapore 40 Total 53.197
50,0% 55,0% 60,0% 65,0% 70,0% 75,0%
Figure 13: % of population aging 15-64 years
Europe Asia
North America Latin America
North Africa South Africa
Source: World Bank national accounts data, and OECD National Accounts data files
Figure 15: Publicly listed athletic apparel and footwear companies
Source: S&P Capital IQ
ADIDAS AG COMPANY REPORT
PAGE 9/27
other companies, Nike is the biggest company in the peer group. Nike is also the
leading company when it comes to EBITDA margin (15%) and income margin
(10%) (see figure 16).
As one can easily see, the most important area for the peer group identified is
North America, accounting for roughly 39% of sales generated, followed by the
European area, in which about 29% of total sales were earned. The biggest
player in North America is without doubt Nike, earning more revenues than the
aggregated other five companies shown (see figure 17). The distinct market
leadership in terms of revenues in the industry’s most important market America
and the stalemate in Europe gives Nike a very strong competitive advantage over
Adidas. Within the American market there are also local players who emerged in
recent years, like Under Armour, which managed to quadruple revenues in the
past 5 years to about EUR 2,275 million currently.
45% 48% 44% 46% 49%
45%
15% 8%
12%
1%
13% 11% 10% 4% 7% 6% 6%
0%
10%
20%
30%
40%
50%
60%
€ 0
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Nike Inc. Adidas AG ASICS Corp. Puma SE Under Armour Inc. Skechers USA Inc.
Figure 16: Financial performance in Mio EUR and margins in % (2013)
Revenue Gross Profit EBITDA Net Income
% Gross Margin % EBITDA Margin % Income Margin
Nike Inc. Adidas AG ASICS Corp. Puma SE Under Armour Inc.
Skechers USA Inc.
others 1.547 - -13 331 189 543
Japan 613 - 866 - - -
China 2.281 1.733 259 - - -
Emerging Markets 3.238 3.762 152 562 - -
North America 10.548 3.100 997 919 2.086 1.246
Europe 5.705 5.999 924 1.108 - -
€ 0
€ 5.000
€ 10.000
€ 15.000
€ 20.000
€ 25.000
€ 30.000
Figure 17: revenues per region in EUR Mio (2013)
Source: S&P Capital IQ
Source: S&P Capital IQ
Adidas has comparably low EBITDA and income margins but high gross margin…
North America accounts for 39% of sales generated by peer group…
Local players emerged and rose in recent years…
Nike has distinct market leadership in North America…
ADIDAS AG COMPANY REPORT
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Adidas stated in its latest Q3 report that regaining share in the North American
market is the top priority, carrying out significant changes in Management and
investing in NBA athletes and the NFL. The marketing working budget
expenditures increased by 8% overall, 11% for adidas and 8% for Reebok. As
can be seen in figure 16, while Nike has about 60% higher revenues, the
marketing budgets for both companies are almost the same (see figure 18). This
affects the EBITDA margin of Adidas negatively and explains why Adidas has a
significantly lower EBITDA margin than Nike (8% vs 15%), despite having a
higher gross margin (48% vs 45%).
Nike
Nike can by far be considered Adidas’ main competitor. The company is currently
holding the market leadership and was leading the market in terms of revenues
for the past 10 years (see figure 19). Although in past years, Adidas was able to
lessen the gap, since 2011 Nike is again starting to increase its lead. Using the
latest numbers, while Adidas was able to be more efficient when it comes to
gross margin, Nike was able to achieve a higher EBITDA and profit margin (see
figure 16). As previously mentioned this is mainly due to the increasing
marketing effort of Adidas.
Nike’s dominant position in the North American market, which is considered the
most important in the sporting goods industry, gives the company a big
advantage. The extent can be seen in figure 17. Nike is able to generate more
than triple the revenues of Adidas in the North American market. These revenues
alone are about 2/3 of Adidas’ total revenues. The equity markets also tend to
value Nike’s earnings with a higher P/E ratio. While one can see from figure 1
that an investment in Adidas and Nike would have approximately yielded the
same returns until 2013, it becomes obvious from figure 20 that the equity
market tends to value revenues generated by Nike at a higher P/E ratio than the
ones generated by Adidas.
Nike faces not only competition by Adidas, its closest competitor, but also from
companies such as Under Armour. This company specialized itself in some niche
markets in North America, like martial arts apparel and thermo underwear.
However, despite its high sales growth (400% within the last 5 years), the
company is not considered as a major threat for Nike or Adidas in the near future.
c) BRAND OVERVIEW
Adidas AG separates its business by its brands. The original brand, adidas, is
separated into adidas Sport Performance, adidas Sport Style and adidas
Originals. All three of them generated EUR 11 billion worth of sales in 2013. As
2.223 1.882
186
978
179 86
11% 13% 8%
33%
11% 6%
0% 5% 10% 15% 20% 25% 30% 35%
€ 0
€ 500
€ 1.000
€ 1.500
€ 2.000
€ 2.500
Figure 18: marketing expenses in Mio EUR and % sales (2013)
Marketing exp. Marketing % sales
Source: S&P Capital IQ
€ 20.416
€ 14.492
€ 0
€ 5.000
€ 10.000
€ 15.000
€ 20.000
€ 25.000
Figure 19: Adidas vs Nike revenue historical EUR Mio
Figure 35: number of stores and retail revenue/store in Mio EUR
# of stores revenue/store
ADIDAS AG COMPANY REPORT
PAGE 15/27
comes with it4. However, as the company mentioned in its latest letter to the
shareholders, it does those expansions with a very strong risk aversion, trying to
minimize the direct investments into stores and enforcing investments into online
shopping facilities in which it sees more potential.5 As a result, the number of
stores operated by Nike is only minor when compared to Adidas. However, due
to the stronger eCommerce operated by Nike, its revenues per store are major
compared to Adidas (EUR 5.12 million vs EUR 1.25 million per store).
III. FORECASTS
a) ECONOMIC FORECASTS
According to the global economic prospects of the World Bank, the real GDP
growth (in constant 2010 USD) is expected to rise from the year 2014 onwards
for the aggregated World Bank members (figure 37). While in 2014 a worldwide
GDP growth of 2.8% is expected (because definite data is not yet available), a
growth rate of 3.5% is expected till 2016. The IMF outlook is even more
optimistic, forecasting a growth rate of 3.4% for 2014 and 4.0% for 2015,
according to its world economic outlook6.
For estimating the growth of apparel, footwear and accessorices market we use
GDP growth as a direct metric. For identifying potential new markets we use GNI
growth trends in the various regions.As already discussed in the economic
overview section on pages 6 & 7, the global economies show an increasing gross
national income, which can be used to meassure the growth of average income.
Latin America, North Africa and Asia, especially China, were able to substantially
increase their GNI per capita over the past few years (see figures 10 & 11).
While Adidas is already operating extensively in Latin America and Asia, it has no
significant operations in North Africa yet. Due to the political conflicts in this
region we don’t expect Adidas to start operations in this are in the foreseeable
future.
According to the potential revenue change projection of figure 14 on page 7, we
can see in figure 38 the potential total revenue changes, which were computed
using the GDP growth projections for each region and multiplying them with the
2013 regional share of total revenues. In a next step we tried to project the
revenues per distribution channel, which are elaborated in the following sections.
4 Trefis. 2014. Nike Equity Report. Retrieved from http://www.trefis.com 5 Mark Parker. 2014. “Letter to shareholders”. Nike Annual Report 2014. 6 IMF. 2014. IMF World Economic Outlook. Retrieved from http://www.imf.org/external/pubs/ft/weo/2014/update/02/
-2% 0% 2% 4% 6% 8%
10% 12%
Figure 37: Global GDP growth in % of constant 2010 USD
World US
Euro area (17) Europe
East Asia South Asia
Latin America
Source: World Bank, Global Economic Prospects
Emerging countries substantially increased their GNI per capita…
Potential revenue changes were computed using blended GDP growth projections…
Figure 43: Estimated store openings and incremental sales in Mio EUR
Incremental Sales
Like-for-like sales
Store Openings
ADIDAS AG COMPANY REPORT
PAGE 18/27
OTHER BUSINESSES
Other businesses contain the operations of TaylorMade-adidas Golf, Rockport,
Reebok-CCM Hockey and other centrally managed brands. TaylorMade makes
up for about 66% of the segments revenues in 2013. As can be seen in figures
44 & 45, the European and American golfing markets are on the brink of being
saturated with stabilizing numbers of registered golfers in Europe and lowering
golf equipment purchases in the US. The fact that Adidas, in their CEO Q1
report, announced to lower the existing inventory of TaylorMade and will start a
restructuring program to align the segment to the lower future growth
expectations of the golfing market, underlines our projection of a declining golfing
market. Because of the high double-digit revenue decrease in 2014, we estimate
an only minor increase in 2015 and expect only minor growth for the predictive
future of TaylorMade.
Rockport is predicted by us to grow at a currency neutral average of 4% per year,
Reebok-CCM is estimated to continue strong growth at a currency neutral growth
of 9% from 2015 onwards. Other centrally managed brands are expected to
continue their historic growth at 10% per year. However due to the low impact of
those brands, no further analysis is made on them (see figure 46).
Due to the restructuring measures to be taken at TaylorMade and the difficult
market environment in the golfing industry, we expect the segmental gross
margin to stay at a low 41.0%. The operating margin is expected to stay at the
historic average rate of 26.5%. Our estimations can be seen in figure 47.
c) BUSINESS FORECASTS
STRATEGIC FOCUS
On an overall basis, Adidas products sell good globally and the world cup in
Brazil surely helped to raise brand awareness. Nevertheless, Adidas had to issue
profit warnings already three times within the last year and the weakening
Russian Rubel is continuing to put high pressure on the company’s sales.
However, this isn’t just a problem for Adidas, but for all globally acting
companies. What is missing for Adidas to keep the company up to its competitor
Nike is an increasing share in the industry’s most important market, North
America.
As a result, Adidas’ main focus, in our expectations, should be on gaining ground
in the North American market. The company cannot afford to withdraw from this
market, because Nike will use the additional cash flows to attack Adidas on other
markets. The attempt to buy market share by investing in the US-company
Reebok in 2006 did not work out very well. Adidas paid USD 3.8 billion for
- 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0
1990 1995 2000 2005 2010
Figure 44: Number of registered golfers in Europe (in mio)
Source: KPMG, Conducted by European Golf Association
-
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
2007 2009 2011 2013
Figure 45: Golf equipment purchases (in Mio USD)
Source: National Sporting Goods Association, conducted by TNS
Source: Analst’s estimates
1.285 938 910 919 947 975
285
271 268 273 284 296
260
265 276 295 322 351
112
113 118 127 140 154
2013A 2014E 2015F 2016F 2017F 2018F
Figure 46: Estimated other business revenues in Mio EUR
TaylorMade Rockport Reebok-CCM Other
Source: Analst’s estimates
1.946 1.587 1.571 1.615 1.692 1.775
799 651 644 662 694 728
508 421 416 428 448 470
2013A 2014E 2015F 2016F 2017F 2018F
Figure 47: Estimated other business profits in Mio EUR
Sales Operating Profit Gross Profit
ADIDAS AG COMPANY REPORT
PAGE 19/27
Reebok in 2006. Reebok’s revenues decreased from that time on till now with a
CAGR of -2.2%. The new strategy will be to enforce marketing and sponsorships
in order to raise awareness.
In addition TaylorMade-adidas Golf’s business has come under pressure with a
saturated market and high amounts of products still on stock. The strategy will be
to build off these stocks in order to avoid heavy losses. Smaller growth
opportunities should be expected from this sector in the coming years in our
opinion. However, the impact on total results is expected to be small due to the
small share on total revenues of about 8% in the past.
Due to the conflicts in Ukraine and the sanctions imposed on Russia, Adidas will
try to lower its exposure to the Russian market in the foreseeable future. The
sales generated in Russia in 2013 are estimated to exceed EUR 1 billion.8
However, with the Rubel getting under more and more pressure (see figure 48),
sales generated in this region loose their value to the company. The CEO of
Adidas already announced to heavily decrease the number of shop openings and
increase the number of closings in this area. The upcoming years will show,
whether this is the right long-term strategy for growth in this important region. In
order to gain shareholders trust, the company announced a share repurchase
program in 2014. Through it, the company will re-purchase 25 million shares until
the end of 2017. By December 2014 the company already repurchased 4.9
million shares for an average price of EUR 61 per share, therefore a volume of
EUR 300 million. We expect the remaining 20.1 million shares to be repurchased
evenly spread from 2015 to 2017.
IV. VALUATION We used a discounted cash flow model to derive a target price of EUR 61.81,
which is above the market price as per 02.01.2015 and below our initial target
from the Q3 review. All companies in which Adidas has a share are majority held
and therefore consolidated. In the forecast, as mentioned before, the wholesale,
retail and other business sectors were separated in order to increase the
predictability of cash flows in the future. In addition to the scenario predicted by
us we also incorporated a sensitivity analysis.
a) COMPARABLES
As per beginning of January, the Adidas AG stock is trading at a price-earnings
multiple of 16.24, while the median of the identified peer group equals 21.51. This
8 Aaron Ricadela. 2014. “Adidas plunges after reducing forecasts on Russia, Golf”. Bloomberg.com.
72,55
30,00
35,00
40,00
45,00
50,00
55,00
60,00
65,00
70,00
75,00
Figure 48: historical EUR/RUB chart
Source: Investing.com
Using a DCF model we derive a target price of EUR 61.81…
Share re-purchase program announced in 2014…
ADIDAS AG COMPANY REPORT
PAGE 20/27
means a discount of 24.5%. The same is true for the equity value over EBITDA
multiple, which currently equals 9.02, a 13.6% discount over its peer group
median. In our opinion this discount is unjustified because of the company’s
competiveness and ability to generate sustainable cash flows. We expect Adidas’
stock price to increase to the outlined price target over the upcoming year.
b) DISCOUNTED CASH FLOW ANALYSIS
WACC
For estimating the cost of capital of both segments we used the capital asset
pricing model (CAPM). The relevant equity risk premium was estimated to be
5.3%9, based on the historical performance of the German equity index DAX
versus German 10-Year bonds in the respective timeframe. The current risk free
rate, symbolized by the yield of German 10-Year bonds equals 1.48%10.
The beta factor was calculated by regressing the excess returns of Adidas of the
past five years against the excess returns of the German DAX of the past five
years (see figure 49). The resulting asset beta equals 0.82. The thereof
calculated cost of equity rate equals 5.8%. In addition the asset beta was
calculated by regressing against the excess returns of the MSCI World index of
the past five years (see figure 50). The resulting asset beta equals 0.86. The
effects of using a different beta are analyzed in appendix 3.
For calculating the cost of debt we added a debt premium based on the CDS
spread of 10-year bonds of comparable companies to the risk free rate. The CDS
rate used equals 0.85% and derives from the CDS spread trading for Adidas at
02.01.2015 (see figure 51). This gives us a debt rate of 2.32%. When looking at
the historical D/E levels a trend towards an approximate target level of about
20% can be seen. We used this level and looked at the current leverage ratio of
the identified peer companies. The average equals 17.3% and the median equals
13.9%. A target debt level of 20% is seen as more realistic because Adidas is
currently able to finance its operations at a low cost and will certainly take
advantage of that in the foreseeable future, therefore having a slightly higher D/E
ratio than its peers on average.
Putting all parts together, the WACC in real terms equals 5.1%. In order to
account for the various regions Adidas is operating in, a blended inflation rate
was calculated using the inflation rates of the various regions and weighting them
by the regions’ share in Adidas’ total returns. This gives a blended inflation rate of
1.7%. The resulting WACC in nominal terms equals 6.9% (see figure 52).
9 Credit Suisse. 2014. “Locomotive of Europe.” Global Investment Returns Yearbook 2014, p.46. 10 Due to the historically low level, the average of the past three years was used, Source: investing.com
y = 0,8214x + 0,004 R² = 0,80815
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
-40% -20% 0% 20% 40%
Figure 49: Adidas Beta on the DAX using German Bund as r(f)
For determining perpetual growth, we calculated the historic average GDP
growths of Adidas’ reported operating regions and weighted them according to
their share to the company’s total revenues. We used a conservative approach
and deducted one time the standard deviation from the averages in order to
decrease uncertainty to an acceptable level. The resulting estimated perpetual
real growth rate equals 1.4%. Since the forecasts are prepared in nominal terms,
the inflation rate of 1.7% is added, resulting in a perpetual nominal growth rate of
3.1% (see figure 53). This is considered realistic since Adidas is a strong player
in the sporting goods industry and the industry’s revenue growth is dependent
from the overall economic development of the regions the companies operate in.
Figure 53: calculation perpetual nominal GDP growth rate
Perpetual growth rate % revenue Average real growth
Conservative average real
growth GDP deflator
Conservative Nominal
growth Europe & Central Asia 41,4% 2,7% 0,8% 1,7% 2,5% East Asia & Pacific 25,5% 5,1% 2,6% 1,4% 4,0% North America 23,2% 3,2% 1,1% 1,4% 2,5% Latin America & Caribbean 10,0% 3,9% 1,4% 2,9% 4,4%
Total 3,5% 1,4% 1,7% 3,1%
Source: World Bank, World Development Indicators 1961-2013
SUM OF PARTS
We used the revenue estimations of all segments and added them together to an
overall forecast for the company till the financial year of 2018. Additionally,
accounts receivable and payable were estimated based on historic ratios of
revenue and cost of goods sold respectively. Further we estimated capital
expenditure to be at the higher range of the investment target indicated by
Adidas in its annual report in 2013. By putting all parts together, we arrive at an
estimated target price of EUR 61.81 per stock as per year-end 2015, as can be
seen in appendix 2. Estimated financial statements and cash flow map can be
found in appendix 1.
SENSITIVITY ANALYSIS
The weakest points of a discounted cash flow model are its assumptions. The
value is mainly driven by the estimated cost of capital and the estimated
perpetual growth rate. In order to give an impression on this sensitivity and to
give the reader the opportunity to get an impression of how changes in those
estimates change the estimated value per share, a sensitivity analysis can be
found in appendix 3. The analysis was made with all other variables constant.
The resulting price ranges between EUR 51.72 and EUR 76.35 per share.
Price range of EUR 51.72 to EUR 76.35, depending on WACC and growth rate assumptions…
Capital expenditure estimated to be at the higher range of the investment target from management…
risk free rate 1,50%
equity risk premium 5,30%
Asset Beta 0,82
r(e) 5,80%
r(d) 2,30%
tax rate 27,20%
D/E 20,00%
WACC (real) 5,10%
inflation rate 1,70%
WACC (nominal) 6,90%
Figure 52: WACC calculation
ADIDAS AG COMPANY REPORT
PAGE 22/27
V. APPENDIX
APPENDIX 1: FINANCIAL STATEMENT & CF MAP
Statement of Financial Position (IFRS, in Mio) FY13 FY14E FY15F FY16F FY17F FY18F
Retail value 2013 Note: The Y–axis in the chart above uses a logarithmic scale with a base of 3.
Value growth 2013–18
China
DevelopedDeveloping
JapanGermany
Russia
United Kingdom
Italy
Brazil
France
India
Canada
Spain
Mexico
S Korea
Turkey
Argentina
Australia
S AfricaSaudi ArabiaUAE
Venezuela
Sweden
Ukraine
Apparel and Footwear: Top 10 MarketsGlobal Ranking 2013/2018based on US$ sales
2013
2018
7
10
4
1
2
3
5
6
8
9
USA
China
Japan
Germany
Russia
United Kingdom
Italy
Brazil
France
India
5.1%APPAREL AND FOOTWEAR
total value growth globally in 2013
ADIDAS AG COMPANY REPORT
PAGE 27/27
VI. DISCLOSURES AND DISCLAIMER
Research Recommendations
Buy Expected total return (including dividends) of more than 15% over a 12-month period.
Hold Expected total return (including dividends) between 0% and 15% over a 12-month period.
Sell Expected negative total return (including dividends) over a 12-month period.
This report was prepared by “Student’s Name”, a student of the NOVA School of Business and Economics, following the Masters in Finance Equity Research – Field Lab Work Project, exclusively for academic purposes. Thus, the author, which is a Masters in Finance student, is the sole responsible for the information and estimates contained herein and for the opinions expressed, which reflect exclusively his/her own personal judgement. This report was supervised by professor Rosário André (registered with Comissão do Mercado de Valores Mobiliários as financial analyst) who revised the valuation methodology and the financial model. All opinions and estimates are subject to change without notice. NOVA SBE or its faculty accepts no responsibility whatsoever for the content of this report nor for any consequences of its use. The information contained herein has been compiled by students from public sources believed to be reliable, but NOVA SBE or the students make no representation that it is accurate or complete, and accept no liability whatsoever for any direct or indirect loss resulting from the use of this report or its content. The author hereby certifies that the views expressed in this report accurately reflect his/her personal opinion about the subject company and its securities. He/she has not received or been promised any direct or indirect compensation for expressing the opinions or recommendation included in this report. The author of this report may have a position, or otherwise be interested, in transactions in securities which are directly or indirectly the subject of this report. NOVA SBE may have received compensation from the subject company during the last 12 months related to its fund raising program. Nevertheless, no compensation eventually received by NOVA SBE is in any way related to or dependent on the opinions expressed in this report. The Nova School of Business and Economics, though registered with Comissão do Mercado de Valores Mobiliários, does not deal for or otherwise offers any investment or intermediation services to market counterparties, private or intermediate customers. This report may not be reproduced, distributed or published without the explicit previous consent of its author, unless when used by NOVA SBE for academic purposes only. At any time, NOVA SBE may decide to suspend this report reproduction or distribution without further notice.