01 TO OuR SHaREHOldERS

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TOGETHER WE WIN

Q2 F i r s t H a l f Y e a r R e p o r t

J a n u a r y – J u n e 2 0 12

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Ta b l e o f C o n T e n T s

First Half Year Results at a Glance 3

Financial Highlights (IFRS) 4

Operational and Sporting Highlights 5

Interview with the CEO 6

Our Share 11

Group Business Performance 14

Economic and Sector Development 14

Income Statement 15

Statement of Financial Position and Statement of Cash Flows 19

Business Performance by Segment 22

Wholesale Business Performance 22

Retail Business Performance 24

Other Businesses Performance 26

Subsequent Events and Outlook 28

Responsibility Statement 32

Consolidated Statement of Financial Position 33

Consolidated Income Statement 35

Consolidated Statement of Comprehensive Income 36

Consolidated Statement of Changes in Equity 37

Consolidated Statement of Cash Flows 38

Selected Explanatory Notes to the Interim Consolidated Financial Statements 39

Executive and Supervisory Boards 43

Financial Calendar 2012/2013 44

Publishing Details & Contact 45

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01.1 01.2 01.3 01.4 01.5

02 INTERIm GROup maNaGEmENT REpORT

02.1

02.2

02.3

03 INTERIm CONSOlIdaTEd FINaNCIal STaTEmENTS (IFRS)

03.1 03.2 03.3 03.4 03.5 03.6 03.7

04 addITIONal INFORmaTION

04.1 04.2 04.3

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T o o u r s h a r e h o l d e r s

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Q 2 / 2 012 01.1 First Half Year Results at a Glance

01 First Half Year Results at a Glance (€ in millions) First half year

2012 First half year

2011 Change Second quarter

2012 Second quarter

2011 Change

Group

Net sales 7,341 6,337 15.8% 3,517 3,064 14.8%

Gross profit 3,522 3,093 13.9% 1,697 1,506 12.7%

Gross margin 48.0% 48.8% (0.8pp) 48.2% 49.2% (0.9pp)

Operating profit 665 532 24.9% 256 219 17.1%

Operating margin 9.1% 8.4% 0.7pp 7.3% 7.1% 0.1pp

Wholesale

Net sales 4,727 4,292 10.1% 2,113 1,973 7.1%

Gross profit 1,902 1,780 6.8% 810 780 3.8%

Segmental operating profit 1,481 1,388 6.7% 630 586 7.4%

Segmental operating margin 31.3% 32.3% (1.0pp) 29.8% 29.7% 0.1pp

Retail

Net sales 1,547 1,258 22.9% 854 681 25.4%

Gross profit 963 801 20.1% 537 448 19.8%

Segmental operating profit 332 261 27.0% 217 172 26.1%

Segmental operating margin 21.4% 20.8% 0.7pp 25.4% 25.3% 0.1pp

Other Businesses

Net sales 1,067 787 35.6% 550 410 34.2%

Gross profit 475 356 33.5% 249 184 35.5%

Gross margin 44.5% 45.2% (0.7pp) 45.3% 44.9% 0.4pp

Segmental operating profit 319 220 44.7% 171 114 49.2%

Segmental operating margin 29.9% 28.0% 1.9pp 31.0% 27.9% 3.1pp

Sales by Brand

adidas 5,537 4,673 18.5% 2,649 2,234 18.6%

Reebok 787 904 (12.9%) 336 427 (21.3%)

TaylorMade-adidas Golf 788 570 38.3% 401 288 38.9%

Rockport 127 114 12.3% 67 59 13.3%

Reebok-CCM Hockey 102 77 31.8% 64 56 15.8%

Rounding differences may arise in percentages and totals.

01.1

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Q 2 / 2 012

03 First half year net sales

7,341

6,337

04 First half year net income attributable to shareholders

455 349

01.2 Financial Highlights

1) Twelve-month trailing average. 2) EBITDA of last twelve months.

02 Financial Highlights (IFRS)

First half year

2012 First half year

2011 Change Second quarter

2012 Second quarter

2011 Change

Operating Highlights (€ in millions)

Net sales 7,341 6,337 15.8% 3,517 3,064 14.8%

EBITDA 786 638 23.2% 317 274 15.4%

Operating profit 665 532 24.9% 256 219 17.1%

Net income attributable to shareholders 455 349 30.1% 165 140 17.9%

Key Ratios (%)

Operating expenses as a percentage of net sales 40.3% 41.6% (1.3pp) 42.4% 43.3% (1.0pp)

Operating margin 9.1% 8.4% 0.7pp 7.3% 7.1% 0.1pp

Effective tax rate 27.4% 27.5% (0.1pp) 30.5% 29.0% 1.6pp

Net income attributable to shareholders as

a percentage of net sales 6.2% 5.5% 0.7pp 4.7% 4.6% 0.1pp

Operating working capital as a percentage of

net sales¹⁾ 20.6% 20.7% (0.1pp)

Equity ratio 46.5% 43.5% 3.0pp

Net borrowings/EBITDA²⁾ 0.2 0.7 (0.5pp)

Financial leverage 5.6% 19.3% (13.7pp)

Return on equity 8.0% 7.8% 0.2pp

Balance Sheet and Cash Flow Data (€ in millions)

Total assets 12,237 10,265 19.2%

Inventories 2,702 2,376 13.7%

Receivables and other current assets 3,040 2,671 13.8%

Working capital 2,586 2,109 22.6%

Net borrowings 318 863 (63.2%)

Shareholders’ equity 5,688 4,467 27.3%

Capital expenditure 149 124 19.7% 87 74 16.3%

Net cash used in operating activities (70) (332) (79.0%)

Per Share of Common Stock (€)

Basic earnings 2.17 1.67 30.1% 0.79 0.67 17.9%

Diluted earnings 2.17 1.67 30.1% 0.79 0.67 17.9%

Net cash used in operating activities (0.33) (1.59) (79.0%)

Share price at end of period 56.46 54.70 3.2%

Other (at end of period)

Number of employees 46,738 46,353 0.8%

Number of shares outstanding 209,216,186 209,216,186 – 209,216,186 209,216,186 –

Average number of shares 209,216,186 209,216,186 – 209,216,186 209,216,186 –

01.2

€ in millions

2012 € in millions

2012

€ in millions

2011 € in millions

2011

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Q 2 / 2 012 01.3 Operational and Sporting Highlights

Operational and Sporting Highlights Second Quarter 2012

01.3

11 Rockport launches the revolutionary truWalkZero footwear collection in New York City. The collection features performance technologies by adidas and Rockport that allow for a natural full range of motion and stellar comfort.

16 adidas sponsored Sharon Cherob wins the 116th Boston Marathon. She is ranked as one of the top marathoners in the world.

Picture 01

18 Internationally acclaimed supermodel Miranda Kerr is announced as the latest EasyTone ambassador in Reebok’s “Satisfaction”

campaign. Picture 02

27 The Reebok CrossFit Regionals kick off. Taking place in 17 locations worldwide, these regional competitions make up the second stage of the CrossFit Games on the road towards crowning the next two “Fittest on Earth”. Picture 03 27 The first adidas Brand Centre in Russia opens

in Moscow with Zinédine Zidane in attendance.

In the 1,100m² store, consumers will find more than 3,000 items representing the full spectrum of the adidas brand.

02 adidas launches the Predator Lethal Zones football boot. The boot is composed of five, superlight (SL) rubber and memory foam 3-D zones, each designed to support perfect ball control. Picture 04

21 adidas sponsored football club Chelsea FC wins the UEFA Champions League. This is the first time in Chelsea’s history that they have claimed the coveted European trophy.

Picture 05

29 The first adidas by Stella McCartney global flagship store opens in London. adidas has been successfully collaborating with Stella McCartney for the past eight years.

30 adidas Golf introduces Puremotion, a natural movement golf shoe. Inspired by the concept of barefoot training, the shoe is designed to increase flexibility and provide extreme comfort both on and off the course.

Picture 06

31 Reebok Classics and Marvel Entertainment, LLC join forces to create a 10-silhouette sneaker capsule collection featuring some of Marvel’s most memorable characters.

Picture 07

01 The TaylorMade-adidas Golf business segment announces the successful completion of its acquisition of Adams Golf, Inc. The acquisition adds a further strong golf brand to an already powerful portfolio of golf brands.

08 The UEFA EURO 2012 kicks off in Poland and Ukraine. As Official Partner of the UEFA EURO 2012, adidas supplies the Official Ball of the tournament, equips officials, referees and volunteers, and outfits the teams Spain, Germany, Ukraine, Greece, Denmark and Russia.

21 adidas expects to achieve record sales of well over € 1.6 billion in the football category in 2012, surpassing even record sales from the World Cup year 2010 (€ 1.5 billion in sales).

26 adidas AG signs a € 500 million revolving credit facility. The facility is another step in securing the Group’s financial flexibility and ensures long-term cost-effective financing.

27 The adidas Group Annual Report 2011 claims two significant awards: one of the world’s biggest and most prestigious design awards, the red dot, and the Best of Corporate Publishing (BCP) Gold Award.

29 The adidas Group is selected for inclusion in “The Sustainability Yearbook 2012” of Sustainable Asset Management (SAM), the research company working on the Dow Jones Sustainability Indexes. The Group is awarded the two sustainability distinctions “SAM Sector Leader” and “SAM Gold Class”.

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Q 2 / 2 012 01.4 Interview with the CEO

Interview with the CEO

Despite the uncertain economic environment, the adidas Group has excelled in the first half of 2012, achieving double-digit sales and earnings increases.

While maximising the growth opportunities provided by this year’s major sporting events, the Group maintained strong discipline, which is evident in its improved operating margin, inventory management and net debt reduction.

In the following interview, Herbert Hainer, adidas Group CEO, reviews the first half of 2012 and discusses the opportunities and challenges the Group faces for the remainder of the year.

01.4

HE R b E R T H a INE R CEO

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? Herbert, how has the Group performed in the first half from a financial point of view?

! Despite all that is going on from a macroeconomic and competitive perspective, our strong business model and excellence in execution have once again delivered a winning performance.

Revenues increased 11% on a currency-neutral basis as we added

€ 1 billion of sales in euro terms, taking us to over € 7.3 billion for the first six months. We grew in every region of the world, led by strength in our performance categories, which is fitting in this high-profile sporting event year. Even more pleasing is our operating margin improvement of 0.7 percentage points. Given negative pressures of almost 5 percentage points from input costs, this is a significant result, especially in view of the fact that most of our major competitors have seen declines in this important metric in the same period. These improvements drove a 30% increase in net income attributable to shareholders to a new record level of € 455 million. And through our highest ever cash flow generation in a second quarter, we have seen a reduction in net borrowings by 63% to € 318 million compared to € 863 million a year ago. These are great results and a great inspiration as we continue to deliver on our promises.

? can you comment on momentum in your three key attack markets Greater china, north America and russia/ciS in the second quarter?

! Our three key attack markets continued to meet our high expectations in the second quarter, each delivering double-digit growth. Looking at Greater China, sales grew 13% currency-neutral in the quarter, driven by 16% growth at adidas Sport Performance, as new products like the ClimaCool Seduction running shoe sold in abundance. This is a confirmation that the adidas brand is clearly the brand in the market with the greatest momentum. And you may rest assured that this will continue in the second half, given double-digit growth in order books and our healthy inventory situation relative to competitors. In North America, Group sales grew 10% on a currency- neutral basis, with the adidas brand up 15% and TaylorMade-adidas Golf increasing 31%. adidas Originals once again was a major highlight for the region as revenues increased over 40%. But also in basketball, we are enjoying fantastic momentum in the US, with footwear sales growing 36% and our market share now in double-digit territory again, above 11%. Therefore, halfway through the year, I am fully confident that we will achieve the targeted hat-trick of years of double-digit growth for the adidas brand in North America. And last but not least, Russia/CIS: Both adidas and Reebok grew at a double-digit rate in the second quarter, which lifted currency-neutral Group sales by an impressive 20%, with comparable store sales expanding 10%. This is not just a confirmation, but even a strengthening of our dominance in that market.

? With your sponsorship of the ueFA eurO 2012, you had high aspirations for the football category. Have you achieved your goals in the summer of football?

! Football is at the heart of the adidas brand. And there is no doubt that we have hit the mark again in 2012, be it through brand visibility, product sales, or simply confirmation of our status as the most innovative brand in the sport. Even before the first whistle was blown at the UEFA EURO 2012, we were champions of Europe, crowned by the all-adidas UEFA Champions League final between Bayern Munich and Chelsea. At the UEFA EURO 2012, we won all battles on and off the field, epitomised by Spain’s master-class victory in the final as they achieved the ‘impossible’ triple. Even at a time of economic recession in Europe, we sold more jerseys and more footballs at a European Championship than ever before. We sold more than one million Germany jerseys and almost one million Spanish jerseys. The Tango 12 is our most successful European Championship tournament football, selling more than seven million units. We sponsored more players than any other brand, which gave us unprecedented visibility for our industry-leading adizero F50 and the recently launched Predator Lethal Zones. In several consumer and social media tracking surveys, adidas was the most recognised and talked-about sponsor of the event. This all resulted in a 25% increase in football sales in the first six months, which prompted us to lift our forecast for the category to a new record of over € 1.6 billion for the year. And the halo effect for our brand in the host markets has been superb, as we extended our market lead in the Ukraine and edged closer to market leadership in Poland with sales growth of 28% currency-neutral.

? taking this strong performance into account, how did the overall adidas brand do in the first half?

! I am glad you asked that, because often observers forget about the wide reach of our brands in these big event years. Here as well, I am happy to report that the strength of our product pipeline has led to robust sales growth rates in several categories. In total, adidas brand sales increased a strong 14% currency-neutral in the first half and 11% in the second quarter. As well as football, all of our other key performance categories – running, basketball and outdoor – grew at double-digit rates, lifting total adidas Sport Performance sales up 12%. In running, sales were up 13%, driven by key franchises such as adizero and Clima. In basketball, we had growth of 18%, with footwear in particular growing at double that pace. The adizero Crazy Light 2 has been a major success, retailing at a premium price of US $ 140, which is US $ 10 higher than its predecessor. It generated outstanding sell-through rates of over 30% in its first six weeks. And in outdoor, year-to-date growth was 21% as we continue to enjoy great success in mountain sports, solidifying our stronghold in Europe and expanding our offering in emerging market countries. While for many this may be

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seen as a performance year, it would be wrong to forget our continued success with adidas Sport Style. Sales in the first half were up a strong 14%, driven by double-digit growth for adidas Originals and the adidas NEO Label. I am also pleased to report that we are making good progress with our test stores in Germany, where traffic has continued to strengthen and we are hitting important milestones in terms of conversion as well as product and gender mix.

? can you update us on the status of the golf industry, particularly in light of weak results from one of your major competitors?

! Well, weakness is not something we see in our business, quite the contrary. In fact, from an industry perspective, it is shaping up to be one of the most promising years in more than a decade. In the US, rounds played are up 12% for the first six months. And while we are definitely benefiting as golfers return to the course, even more than that, we are capitalising from a full onslaught of product innovation from RocketBallz clubs to Tour360 and Powerband footwear, to which the competition simply have no answer. This is reflected in our record first half top-line growth of 29% currency-neutral. We grew in all categories, with metalwoods, irons, putters and footwear all recording growth rates above 20% and market share improvements. With Adams Golf, which we acquired effective June 1, we have the second starlet of the industry and I am pleased to report that sales for this brand are up 16% in the first six months. Therefore, I can only reiterate that we are the ones to watch in golf, and I look forward to welcoming investors and analysts to Carlsbad in September, where we will outline how we intend to maintain and extend our leadership in the category.

? turning to reebok, sales were disappointing in the second quarter and year-to-date. Where are you facing the most issues and what other trends do you see for the brand?

! Yes, I agree, and of course I am disappointed that we cannot deliver progress from a sales perspective this year with the Reebok brand. Unfortunately this year, we couldn’t build on the great momentum we created by bringing unexpected, innovative products like EasyTone, Zig and Flex to the market in 2010 and 2011.

Nevertheless, our fitness positioning for Reebok is exactly the right one because it resonates with consumers and customers alike. In fact, retailers have already seen our extended fitness proposition for Reebok which will be visible in the marketplace in 2013. This will allow us to capitalise on many major fitness trends in addition to our already successful CrossFit initiative. Stay tuned to hear more about this at our Investor Day in September. However, what I can already tell you today is that I am optimistic we will create a new dynamic for Reebok in 2013. Looking at the 16% decline in the first half, there are a few factors which you should bear in mind. Firstly, the impact from rectifying the situation regarding our operations in India accounted for a significant portion of the sales decline. A further part of the decline

relates to our decision not to renew the NFL licence and the shift of NHL US-related sales to the Reebok-CCM Hockey segment. Excluding these factors, sales were down 8% year-to-date. In addition to this, we continue to face challenges in Latin America due to difficulties at our joint venture partner and import restrictions in certain countries, also in Western Europe as we clean up toning inventory. On the positive side, we continue to enjoy considerable success for the brand in controlled space driven markets such as Russia and South Korea. In North America, the underlying trends are also acceptable. Although sales for the quarter are down, this was mainly due to a strategic decision we took in May and June to reduce wholesale shipments of Zig and Flex products, which are still seeing strong demand, to ensure we protect and do not overheat these franchises. Otherwise, our trends in the market remain promising, which is underpinned by continued strength of our own-retail sales And with the introduction of the ZigLite, the CrossFit Nano 2.0 and our new SmoothFlex running shoe, I expect an improving sales trend in this market as we move into the second half.

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? Speaking of india, can you give us some more details on the commercial irregularities, the progress you are making on reshaping that business and your thoughts on internal controls?

! As you will have seen since our announcement at the end of April, our local management team has filed criminal charges against former officers of our Reebok subsidiary in India and is currently closely co-operating with the various authorities on the matter. As a precaution, the team also moved the Reebok business to a cash-and- carry model for the interim, to protect the Group from further losses until they have carried out a due diligence on their customer base. To ensure a thorough and independent review, we have also engaged the services of Ernst & Young to support our efforts. Local management will complete their Reebok customer review in the next few weeks and, as expected, there will be a reduction in the Reebok store base in India in order to move towards a more profitable business model for the brand in the market. In general, while the issue is unpleasant, we will achieve our goal and set Reebok up for a fresh start in India in 2013. I can also confirm that we are not expecting a major deviation from the € 70 million negative impact on 2012 Group operating profit we projected in May. This relates to our loss of business, actions we are taking to move to a performance-based trade terms policy and other reorganisation activities. About € 17 million of this is reflected in our first half results. In terms of internal controls, I am satisfied that we have already very strong structures and policies in place, as we can see in our historic ability to identify and resolve issues. However, when such significant criminal energy and collusion is in play, as is being uncovered at Reebok India, standard internal control mechanisms can fail, particularly when several people are involved. As with all other elements of our business, we will continue to evolve the control environment as we implement best practice control mechanisms and procedures to ensure the highest level of corporate governance.

Over the last few years, we have made a lot of progress in the areas of risk and compliance management and we are currently working on proposals under the guidance of the Supervisory Board’s Audit Committee to further review and evolve our internal control structures in a similar way.

? Are you concerned about future growth as the global economy cools, and are you taking any additional steps in your planning?

! While we certainly acknowledge the environment is not getting any easier and business and consumer sentiment has turned more negative since we last spoke, I nonetheless believe that consistency is the only way, and the right way to move forward. From that perspective, I don’t see the need to do anything materially different, as we have not been blind to the economic problems. Just look at our industry-leading approach to inventory management. That was one of our key learnings from the last financial crisis, and why we have

been keeping a razor-sharp focus on inventory turnover and ageing.

If you look at how we have taken our top-line opportunities this year, while at the same time running down our inventory growth rate to now just 8% currency-neutral, you can see that this is not only allowing us to match what is going on from an economic perspective, it also ensures we can consistently bring innovation and fresh concepts to market unimpeded. And as I look out to the rest of the year, you won’t see a change here. Our inventory growth rate will remain at healthy levels. And we will continue to bring exciting concepts to the consumer as we enter the all-important back-to-school and holiday seasons – whether it is some of the great running products such as the adizero Feather 2.0, basketball shoes and apparel, particularly those around our key assets Derrick Rose and Dwight Howard at the start of the NBA season, the buzz we are creating with Smart Football through our miCoach platform or our new Originals campaign which launched on August 1. I am sure you will agree that we have the right formula to preserve and sustain our positive revenue, earnings and cash flow growth trajectory.

? the Olympic Games began in London last week. What are your first impressions and what does it mean for adidas to be part of this event?

! There is definitely no other sports brand that has such an authentic and long heritage with the modern Olympics. Right at this very moment we are capitalising on our involvement in the London 2012 Olympic Games, an event that echoes the shared values of our Group: performance, passion, integrity and diversity. After spending some days in the UK last week, I can only admire the enthusiasm Great Britain is bringing to these Olympics. And I am proud that adidas, through our support of British athletics and iconic sports athletes, has been able to contribute to the spirit of these Games.

From a commercial perspective, this will be the most successful Games we have ever had, with Olympic licence product sales up 250%

compared to Beijing. However, I believe it is the long-lasting impact on the consumer in the UK that will bring us the greatest return on investment. With sales up 24% in the UK for adidas so far this year, we have already closed the gap to the market leader from 3 percentage points to just 1 percentage point. With the impact we are having through our Take The Stage campaign, our on-the-ground activations around the stadia, events with ambassadors such as David Beckham and the tremendous visibility and positive responses to brand engagement as measured by social media scoreboards such as Sociagility, I have every confidence that we will achieve our goal to become number one in the market as outlined in our Route 2015 strategy. And on a broader scale, I also have no doubt that this event will inspire a generation worldwide to get into sport, providing further impetus to the global mega-trend towards healthier living. We will harness this energy and use it to sustain our success as the most trusted and desired sports performance brand.

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Q 2 / 2 012

? Finally, wrapping it all up, are there any changes to your financial outlook for the year?

! Yes, taking into account the strong first half year performance and acknowledging the economic uncertainties, I am pleased to report that we can confirm our full year outlook and narrow the range on earnings growth to reflect the confidence we have in our business.

Full year sales are expected to grow at a rate approaching 10% on a currency-neutral basis. Operating margin is forecasted to increase

to a level approaching 8%. Please bear in mind that this guidance also includes the impacts from Reebok India I already discussed. As a result of the strong top line and operating margin expansion, net income attributable to shareholders is expected to increase at a rate of between 15% and 17% to a new record level of between € 770 million and € 785 million. And with further balance sheet improvements, this will put us in a prime position to continue our strong business momentum.

01.4 Interview with the CEO

Herbert, thank you for this interview.

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Q 2 / 2 012 01.5 Our Share

Global stock markets contract in the second quarter In the second quarter of 2012, international stock markets could not sustain the positive momentum from the previous two quarters and declined sharply, mainly during April and May. The key trigger for this development was the ongoing, unresolved sovereign debt crisis in the euro area. In particular, fears that Greece might leave the currency union, following the inconclusive parliamentary elections at the beginning of May, depressed investor confidence. In addition, Spain, the euro area’s fourth largest economy, was subject to very critical financial market scrutiny, following a downgrade by the rating agency S&P, the announcement of a GDP contraction in the first quarter and record-high unemployment. Furthermore, leading economic indicators throughout the three-month period signalled that the sovereign debt crisis is increasingly impacting the entire euro area, causing many market participants to lose confidence in the policymakers’ ability to fundamentally overcome the difficulties. Similarly, weakening US economic data, such as the stagnating employment situation, added to depressed equity markets. The slowdown of the Chinese economy provided another catalyst for this development, as GDP growth in the first quarter moderated to the slowest rate within three years. As a result, the DAX-30 lost considerably, decreasing 8%, and ended the quarter at 6,416 points. The Dow Jones and the MSCI World Textiles, Apparel & Luxury Goods Index, which comprises the Group’s main competitors, contracted 3% and 15%, respectively, compared to the end of March 2012.

Our Share

In the second quarter of 2012, international stock markets reversed the positive trend from the previous two quarters and suffered considerable losses. This development was mainly due to a worsening of the sovereign debt crisis in the euro area, fuelled by persistently negative economic data reported for the region. The emergence of more and more indicators signalling a slowdown of growth of the US and, in particular, the Chinese economy also contributed to depressed sentiment.

Accordingly, the DAX-30, the Dow Jones and the MSCI World Textiles, Apparel & Luxury Goods Index lost 8%, 3% and 15%, respectively. The adidas AG share in comparison performed relatively better, contracting by only 4%.

01.5

05 The adidas AG share

Number of shares outstanding First half average 209,216,186 At June 30¹⁾ 209,216,186

Type of share Registered no-par-value share

Free float 100%

Initial Public Offering November 17, 1995 Share split June 6, 2006 (in a ratio of 1: 4) Stock exchange All German stock exchanges Stock registration number

(ISIN) DE000A1EWWW0

Stock symbol ADS, ADSGn.DE

Important indices DAX-30

MSCI World Textiles, Apparel & Luxury Goods Deutsche Börse Prime Consumer Dow Jones STOXX

Dow Jones EURO STOXX Dow Jones Sustainability Indexes FTSE4Good Europe Index

Ethibel Sustainability Index Excellence Europe ASPI Eurozone Index

ECPI Ethical Index EMU STOXX Global ESG Leaders 1) All shares carry full dividend rights.

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Q 2 / 2 012 01.5 Our Share

06 Historical performance of the adidas AG share and important indices at June 29, 2012 (in %)

YTD 1 year 3 years 5 years Since IPO

adidas AG 12 3 108 21 484

DAX-30 9 (13) 33 (20) 192

MSCI World Textiles,

Apparel & Luxury Goods 4 (10) 97 25 243

Source: Bloomberg.

08 Share price development in 2012¹⁾

| Dec. 30, 2011 Jun. 29, 2012 |

130

115

100

85

adidas AG DAX-30 MSCI World Textiles, Apparel & Luxury Goods Index 1) Index: December 30, 2011 = 100.

adidas AG share outperforms peers in the second quarter The adidas AG share traded sideways at the beginning of the second quarter, outperforming the general market weakness. The preliminary announcement of better than expected results for the first quarter and an improved outlook for the full year 2012 on April 30 provided positive impetus, with the adidas AG share reaching a new all-time high of € 63.16 on May 2. After the publication of the full details on the first quarter results on May 3, market participants highlighted the global strength of the adidas brand, the unprecedented momentum at TaylorMade-adidas Golf as well as the continued dynamism in Greater China, which led several analysts to raise their full year 2012 estimates as well as target prices. This development supported the adidas AG share price throughout May, which declined less severely than the general market. In June, however, while overall equity market sentiment improved slightly, negative statements as well as profit warnings from several competitors in China were key negative catalysts for the adidas AG share price during the month. Towards the end of the period, worse than expected results released by one of the adidas Group’s major competitors additionally weighed on the share price performance. As a consequence, the adidas AG share finished the quarter at € 56.46, representing a decrease of 4% compared to the end of March 2012. Since the end of 2011, however, the adidas AG share has gained 12%.

Number of ADRs continues to increase

The number of Level 1 ADRs (American Depository Receipts) increased during the three-month period compared to the end of the first quarter of 2012. At June 29, 2012, 11.8 million ADRs were outstanding (March 30, 2012: 10.1 million). This development represents a significant increase versus June 30, 2011, when 8.9 million ADRs were outstanding. The Level 1 ADR closed the quarter at US $ 35.86, reflecting a decrease of 8% compared to the end of March 2012. The more pronounced decrease of the Level 1 ADR price compared to the ordinary share price was due to the appreciation of the US dollar versus the euro at the end of the second quarter of 2012 compared to the end of March 2012.

Dividend of € 1.00 per share paid

At the Annual General Meeting (AGM) on May 10, 2012, shareholders approved the adidas AG Executive and Supervisory Boards’

recommendation to pay a dividend of € 1.00 per share for the 2011 financial year (2010: € 0.80). The dividend was paid on May 11, 2012.

Based on the number of shares outstanding at the time of our AGM, this represents a dividend payout of € 209 million (2010: € 167 million) and a payout ratio of 31% of net income attributable to shareholders versus 30% in the prior year. This is in line with our dividend policy, according to which we intend to pay out between 20% and 40% of net income attributable to shareholders.

07 adidas AG high and low share prices per month¹⁾(in €)

| Jan. 1, 2012 Jun. 29, 2012 |

60

50

30-day moving average ■ High and low share prices Source: Bloomberg.

1) Based on daily Xetra closing prices.

56.50 60.34 60.02 63.00 63.16 59.11

56.00 56.94 58.90 55.82

51.42 56.51

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Q 2 / 2 012 01.5 Our Share

Changes in shareholder base

In the second quarter of 2012, the Group received 16 voting rights notifications according to §§ 21 section 1, 25 section 1 or 25a section 1 of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). These voting rights notifications and those received thereafter can be viewed on our corporate website : WWW.AdidAS-GrOuP.cOM/vOtinG_riGHtS_nOtiFicAtiOnS.

Directors’ dealings reported on corporate website

The purchase or sale of adidas AG shares (ISIN DE000A1EWWW0) or related financial instruments, as defined by § 15a WpHG, conducted by members of our Executive or Supervisory Boards, by key executives or by any person in close relationship with these persons, is reported on our website : WWW.AdidAS-GrOuP.cOM/directOrS_deALinGS. In the second quarter of 2012, adidas AG received notification that Christian Tourres, member of the adidas AG Supervisory Board, sold 100,000 shares on May 14, 2012.

Award-winning Investor Relations activities

In June 2012, the adidas Group Annual Report 2011 claimed two significant awards: one of the world’s biggest and most prestigious design awards, the red dot, and the Best of Corporate Publishing (BCP) Gold Award. The coveted red dot has established itself as an internationally recognised seal of quality and is awarded in three different categories. The adidas Group Annual Report 2011 was one of 6,823 submissions from 43 countries and was selected for the award by renowned design experts. The BCP is Europe’s largest Corporate Publishing competition.

09 adidas AG market capitalisation at year-end

(€ in millions)

2012¹⁾ 11,812

2011 10,515

2010 10,229

2009 7,902

2008 5,252

1) At June 29.

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I n T e r I m G r o u p m a n a G e m e n T r e p o r T

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Q 2 / 2 012 02.1 Group Business Performance Economic and Sector Development

Economic and Sector Development

Global economy grows in the second quarter

In the second quarter of 2012, the global economy grew moderately, with the emerging markets continuing to significantly outperform most developed economies. Despite a reduction in the world’s industrial output, falling inflationary pressures and increases in real disposable incomes supported domestic consumption and economic activity, particularly in Asia’s emerging markets. In Western Europe, economic activity remained lacklustre, with the euro area as a whole contracting moderately, despite GDP expansion in both Germany and France. Concerns regarding the sovereign debt crisis, stringent public austerity measures and high unemployment levels continued to inhibit confidence and consumer demand. In contrast, most European emerging markets recorded solid GDP growth, buoyed by low inflationary pressures and robust consumption. Russia, in particular, benefited from these effects as well as from rising investment and government spending and relatively low unemployment levels. In the USA, despite relatively robust export and industrial production activity, a slowdown in job growth and concerns over the sovereign debt crisis in the euro area negatively impacted consumer and business confidence. Nonetheless, food and fuel price deflation supported increases in consumer spending during the quarter. Most Asian economies, excluding Japan, recorded relatively strong GDP growth rates. Inflation continued to stabilise or fall in most of the region’s markets and, together with wage growth, this helped to drive domestic demand and economic expansion. In contrast, GDP in Japan grew only modestly; economic activity and domestic demand continued to be driven by government stimulus and post-earthquake reconstruction investments. In Latin America, low unemployment rates and slowing inflation supported the region’s economies. However, moderating export demand, particularly from Europe, negatively impacted industrial output and economic expansion, which in turn dampened confidence and spending in certain markets.

Group Business Performance

In the first half of 2012, the adidas Group delivered a strong financial performance, despite macro- economic challenges in many regions, especially Western Europe. Currency-neutral Group sales increased 11% as a result of double-digit growth in Retail as well as in Other Businesses. In euro terms, adidas Group revenues grew 16% to € 7.341 billion from € 6.337 billion in 2011. The Group’s gross margin decreased 0.8 percentage points to 48.0% (2011: 48.8%), as the increase in input costs more than offset the positive impact from product price increases, a more favourable product and regional sales mix as well as a larger share of higher-margin Retail sales. The Group’s gross profit rose 14% to € 3.522 billion in the first half of 2012 versus € 3.093 billion in 2011. The Group’s operating margin was up 0.7 percentage points to 9.1% from 8.4% in 2011. This was primarily due to positive effects from lower other operating expenses as a percentage of sales, which more than offset a decrease in gross margin. An increase in other operating income as well as royalty and commission income also positively contributed to this development. The Group’s operating profit grew 25% to € 665 million in the first half of 2012 versus

€ 532 million in 2011. The Group’s net income attributable to shareholders increased 30% to € 455 million from € 349 million in 2011. Diluted earnings per share grew 30% to € 2.17 in the first half of 2012 versus

€ 1.67 in 2011.

02.1

10 Quarterly consumer confidence development¹⁾ (by region) Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

USA²⁾ 57.6 46.4 64.8 69.5 62.0

Euro area³⁾ (10.0) (19.3) (21.3) (19.1) (19.8)

Japan⁴⁾ 36.3 38.5 38.1 40.1 40.8

China⁵⁾ 108.1 103.4 100.5 100.0 104.2

Russia⁶⁾ (9.0) (7.0) (7.0) (5.0) (4.0)

1) Quarter-end figures.

2) Source: Conference Board.

3) Source: European Commission.

4) Source: Economic and Social Research Institute, Government of Japan.

5) Source: China National Bureau of Statistics.

6) Source: Russia Federal Service of State Statistics.

11 Exchange rate development (€ 1 equals) Average rate

2011 Q3 2011¹⁾ Q4 2011¹⁾ Q1 2012¹⁾ Q2 2012¹⁾ Average rate 2012²⁾

USD 1.3922 1.3503 1.2939 1.3356 1.2590 1.2979

GBP 0.8678 0.8667 0.8353 0.8339 0.8068 0.8231

JPY 111.04 103.79 100.20 109.56 100.13 103.43

RUB 40.871 43.041 41.659 39.171 41.316 39.701

CNY 9.0000 8.5810 8.1527 8.4067 7.9630 8.2007

1) Spot rates at quarter-end.

2) Average rate for the first half of 2012.

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Q 2 / 2 012 02.1 Group Business Performance Economic and Sector Development Income Statement

Income Statement

adidas Group currency-neutral sales grow 7%

in the second quarter of 2012

In the second quarter of 2012, Group revenues grew 7% on a currency- neutral basis, driven by double-digit sales increases in Retail and Other Businesses. Currency translation effects had a positive impact on sales in euro terms. Group revenues grew 15% to € 3.517 billion in the second quarter of 2012 from € 3.064 billion in 2011.

Group sales increase driven by double-digit sales growth in Retail and Other Businesses

In the second quarter of 2012, currency-neutral Wholesale revenues increased 1% due to sales growth at adidas. Currency-neutral Retail sales rose 16% versus the prior year, driven by high-single-digit comparable store sales growth. Revenues in Other Businesses were up 22% on a currency-neutral basis, driven by strong double-digit sales increases at TaylorMade-adidas Golf. Currency translation effects had a positive impact on segmental sales in euro terms. Wholesale revenues increased 7% to € 2.113 billion in the second quarter of 2012

12 First half year net sales (€ in millions)

2012 7,341

2011 6,337

2010 5,590

2009 5,034

2008 5,142

13 First half year net sales by segment

2012

¹64% Wholesale

2 21% Retail

3 15% Other Businesses 1

2 3

14 First half year net sales by region

2012

1 29% Western Europe 2 23% North America 3 16% Other Asian Markets 4 12% European Emerging Markets 5 10% Latin America

6 10% Greater China 6

5 1

3 2 4

Positive growth in the global sporting goods industry in the second quarter

In the second quarter of 2012, the global sporting goods industry recorded solid growth, primarily driven by robust consumer spending in the emerging markets, which offset subdued private spending in some Western European markets and in Japan. From a category perspective, running continued to be the biggest sales driver, supported in particular by the popularity of lightweight running products. The increasing demand for minimalist running shoes also contributed positively to this trend. The football, training, outdoor and basketball categories all posted robust sales increases in the second quarter.

Kids sporting goods products also recorded strong sales growth and the e-commerce channel continued to see rapid expansion across the industry. In Europe, despite high unemployment in many markets, the sporting goods industry grew modestly. The 2012 European Football Championship, hosted by Poland and Ukraine, helped drive industry sales in many key European markets. In Western Europe, consumer demand for sporting goods in some peripheral euro area countries remained challenging. However, the UK industry began to reap positive effects from the build-up to the London 2012 Olympic and Paralympic Games. In European emerging markets, rising wages and reduced inflationary concerns supported confidence and consumption, which also positively impacted the expansion of the sporting goods sector, particularly in Russia. In North America, strong retail sales trends in running, basketball and training supported the positive development of the industry. Innovations, particularly in lightweight products, contributed significantly to growth in these categories. In Asia, wage growth and consumer spending supported increases in the sporting goods industry. Growth in the sportswear sector in China was mainly driven by international brands, as inventory issues continued to negatively impact most domestic players. In Japan, by contrast, low consumer spending on discretionary items kept sporting goods sales muted. In Latin America, despite easing inflationary pressures and loosening credit control policies, the industry lost some momentum in the period as high personal debt levels and falling consumer confidence negatively impacted discretionary spending in some of the region’s markets.

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Q 2 / 2 012

from € 1.973 billion in 2011. Retail sales rose 25% to € 854 million versus € 681 million in the prior year. Sales in Other Businesses grew 34% to € 550 million (2011: € 410 million).

adidas Group currency-neutral sales increase 11%

in the first half of 2012

In the first half of 2012, Group revenues increased 11% on a currency- neutral basis. Currency translation effects had a positive impact on sales in euro terms. Group revenues grew 16% to € 7.341 billion in the first half of 2012 from € 6.337 billion in 2011 ^{diAGrAM 12}.

First half Group sales increase driven by double-digit growth in Retail and Other Businesses

The adidas Group’s sales increase in the first half of 2012 was driven by double-digit growth in Retail as well as in Other Businesses. Currency- neutral Wholesale revenues increased 6% during the period, driven by double-digit sales growth at adidas. Currency-neutral Retail sales increased 16% versus the prior year as a result of double-digit sales growth at adidas and Reebok. Revenues in Other Businesses increased 27% on a currency-neutral basis, mainly due to double-digit sales growth at TaylorMade-adidas Golf and Reebok-CCM Hockey. Rockport sales also grew. Currency translation effects had a positive impact on segmental sales in euro terms. Wholesale revenues increased 10%

to € 4.727 billion in the first half of 2012 from € 4.292 billion in 2011.

Retail sales increased 23% to € 1.547 billion versus € 1.258 billion in the prior year. Sales in Other Businesses grew 36% to € 1.067 billion in the first half of 2012 (2011: € 787 million).

02.1 Group Business Performance Income Statement

15 Net sales by region (€ in millions)

First half year 2012

Change Change

(currency-neutral)

Western Europe 2,098 1,961 7% 6%

European Emerging Markets 917 751 22% 16%

North America 1,728 1,452 19% 11%

Greater China 732 552 33% 19%

Other Asian Markets 1,162 956 22% 13%

Latin America 704 666 6% 6%

Total¹⁾ 7,341 6,337 16% 11%

1) Rounding differences may arise in totals.

16 Net sales by product category (€ in millions)

Change Change

(currency-neutral)

Footwear 3,422 3,076 11% 7%

Apparel 2,975 2,579 15% 10%

Hardware 945 683 38% 30%

Total¹⁾ 7,341 6,337 16% 11%

1) Rounding differences may arise in totals.

Currency-neutral sales increase in all regions

In the first half of 2012, currency-neutral adidas Group sales grew in all regions. Revenues in Western Europe increased 6% on a currency- neutral basis, primarily as a result of double-digit sales growth in the UK and Poland. In European Emerging Markets, Group sales increased 16% on a currency-neutral basis due to double-digit growth in most of the region’s markets. Sales for the adidas Group in North America grew 11% on a currency-neutral basis due to increases in both the USA as well as Canada. Sales in Greater China increased 19% on a currency-neutral basis. Currency-neutral revenues in Other Asian Markets grew 13%, driven by strong double-digit increases in Japan and South Korea. In Latin America, sales grew 6% on a currency- neutral basis, with double-digit increases in most of the region’s major markets. Currency translation effects had a positive impact on sales in euro terms in most regions ^{tAbLe 15}.

Group sales up in all product categories

In the first half of 2012, Group sales grew in all product categories on a currency-neutral basis. Currency-neutral footwear sales increased 7% during the period. This development was due to double-digit growth in the running, football, basketball and outdoor categories.

Apparel revenues increased 10% on a currency-neutral basis, driven by double-digit growth in football, running and outdoor. Currency- neutral hardware sales increased 30% compared to the prior year, primarily due to strong growth at TaylorMade-adidas Golf as well as in the football category. Currency translation effects had a positive impact on sales in euro terms ^{tAbLe 16}.

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Q 2 / 2 012 02.1 Group Business Performance Income Statement

18 First half year gross profit (€ in millions)

2012 3,522

2011 3,093

19 First half year gross margin (in %)

2012 48.0

2011 48.8

20 First half year other operating expenses (€ in millions)

2012 2,956

2011 2,637

21 First half year operating profit (€ in millions)

2012 665

2011 532

New product introductions contributed to the sales growth in all product categories. An overview of major product launches in the first half of 2012 is provided in the table below ^{tAbLe 17}.

Group gross margin decreases 0.8 percentage points The gross margin of the adidas Group decreased 0.8 percentage points to 48.0% in the first half of 2012 (2011: 48.8%) ^{diAGrAM 19}. The increase in input costs more than offset the positive impact from product price increases, a more favourable product and regional sales mix as well as a larger share of higher-margin Retail sales. Gross profit for the adidas Group grew 14% in the first half of 2012 to € 3.522 billion versus € 3.093 billion in the prior year ^{diAGrAM 18}.

Royalty and commission income grows

Royalty and commission income for the adidas Group increased 28%

to € 52 million in the first half of 2012 from € 40 million in 2011. On a currency-neutral basis, royalty and commission income was up 24%, mainly as a result of higher licensee sales at adidas.

Other operating income increases 32%

Other operating income includes items such as gains from the disposal of fixed assets and releases of accruals and provisions as well as insurance compensation. In the first half of 2012, other operating income increased 32% to € 47 million (2011: € 36 million). This was mainly due to the release of operational accruals and provisions as well as an increase in income from insurance compensation.

Other operating expenses as a percentage of sales down 1.3 percentage points

Other operating expenses, including depreciation and amortisation, consist of items such as sales working budget, marketing working budget and operating overhead costs. Other operating expenses as a percentage of sales decreased 1.3 percentage points to 40.3% in the first half of 2012 from 41.6% in 2011. In euro terms, other operating expenses increased 12% to € 2.956 billion (2011: € 2.637 billion), as a result of the expansion of the Group’s own-retail activities as well as higher marketing expenditure ^{diAGrAM 20}. Thereof, sales and marketing working budget expenditures amounted to € 894 million, which represents an increase of 7% versus the prior year level (2011: € 832 million). The increase was primarily related to higher expenditures for the adidas brand. By brand, adidas sales and marketing working budget increased 7% to € 656 million in the first half of 2012 compared to € 614 million in the prior year. Sales and marketing working budget for Reebok decreased 1%, amounting to

€ 125 million (2011: € 126 million). As a percentage of sales, the Group’s sales and marketing working budget decreased 1.0 percentage points to 12.2% (2011: 13.1%).

17 Major product launches in Q2 2012

Product Brand

Predator Lethal Zones football boot adidas

adizero Crazy Light 2 basketball shoe adidas

adipure Adapt running shoe adidas

adipure Trainer 360 training shoe adidas

ClimaCool Seduction running shoe adidas

Supernova Sequence 5 running shoe adidas

adizero 5-Star mid American football cleat adidas

Lightweight Clima365 men’s apparel adidas

Cool Culture men’s apparel collection adidas adidas by Stella McCartney Axyridis Clima training shoe adidas

ZigTech Shark Reebok

X Marvel Classics shoe collection Reebok

ATV wedge TaylorMade

Limited edition Samba golf shoe adidas Golf

Crossflex golf footwear adidas Golf

truWalkZero shoe collection Rockport

Business Lite men’s shoe collection Rockport

20K Pump skate Reebok Hockey

Premier 4 goalie equipment Reebok Hockey

KFS Hybrid shoulder pads Reebok Hockey

U+ Crazy Light protective equipment CCM