1InvestorDay2002-StrategyEuropeStrategyEuropeRolandAuschelHeadofEurope2InvestorDay2002-StrategyEurope3InvestorDay2002-StrategyEurope•GroupHomeBase–50%ofGroupsales–Marketdominance•KeyAssets–Football–Apparel–Heritagedivision/fashionmarket–People/traderelationshipsadidasinEurope4InvestorDay2002-StrategyEuropeadidasinEuropeKeyChallengesaheadMarket–Urbanyouthtarget–Women–FuturePotentialonFashion/LeisureMarketOrganization-Harmonization-Complexity5InvestorDay2002-StrategyEurope6InvestorDay2002-StrategyEuropeHar-monization&ComplexityReductionElevatingGrowthBaseStrategicGrowthInitiativesReducingCostsWhatis“WiE”about?7InvestorDay2002-StrategyEuropeNetsalesOperatingprofit19982001“CHASING“Growth“PIONEER“GrowthCreatingcomplexity-IncreasedSKUs-Systems&processes-Eurologistics,...LimitedcomplexityandcompetitionExternalFactors:-Increasingcompetitiveenvironment-Tradeevolution-Consumerbehaviorevolution1994GrowthandComplexity8InvestorDay2002-StrategyEuropeNetsalesOperatingprofit19982001“CHASING“Growth“PIONEER“GrowthCreatingcomplexity-IncreasedSKUs-Systems&processes-Eurologistics,...LimitedcomplexityandcompetitionExternalFactors:-Increasingcompetitiveenvironment-Tradeevolution-Consumerbehaviorevolution19942006“REJUVENATEDLong-termGrowth“Reducecomplexity“WinninginEurope“Growthandcomplexity9InvestorDay2002-StrategyEurope•AreaFormation•AreaDesign•ProductRangeHarmonization•LogisticsConceptKeyStrategicPillars10InvestorDay2002-StrategyEuropeHar-monization&ComplexityReductionReducingCosts•Reducetotaloperatingoverhead€30million(cumulative2003-2006)-administrativecost-organizationalignment•AreaNorth(UK,Benelux)•AreaCentral(D,A,CH,PL,CZ/SR,H,RO,SLO)•FutureAreaFormationstobeannounced2003KEYAREAOFACTIONKEYSTRATEGYEXPECTEDBENEFITSAreaFormation11InvestorDay2002-StrategyEuropeHar-monization&ComplexityReductionKEYAREAOFACTIONKEYSTRATEGYEXPECTEDBENEFITSAreaDesign•Areaorganizedasasinglemarket•SimilarorganizationstructuresacrossAreas•Commonsystemsandprocessplatformforallmarkets•Moreresponsiveandeffectiveorganization•Provideallmarketswithhigherstartingbase-bestpracticessharing-skillsElevateGrowthBase12InvestorDay2002-StrategyEuropeKEYAREAOFACTIONKEYSTRATEGYEXPECTEDBENEFITSRangeHarmonizationHar-monization&ComplexityReductionElevateGrowthBaseReducingCosts•50%articlescommontoallAreasinEuropefromSpring200225%common2ndhalf2003•Increasedofferforallmarkets•Increaseaccountspecificdevelopmentsforkeyaccounts•Totalreductionofno.SKUsby=20%acrossEurope•Additionalgrowthpotentialto“smaller“markets•Reducedclearance13InvestorDay2002-StrategyEuropeHar-monization&ComplexityReductionReducingCostsKEYAREAOFACTIONKEYSTRATEGYEXPECTEDBENEFITSLogisticsConcept•Createintegratedsupplychainfromsourcingtocustomer•FurtherconsolidatewarehousesinEurope•Systemsintegration•Reducedleadtimefromsourcingtomarkets•Responsivetotalsupplychainfromsourcingtocustomer•Inventoryreduction14InvestorDay2002-StrategyEuropeStrategicGrowthInitiativesHar-monization&ComplexityReductionElevatingGrowthBaseReducingCostsAreaFormationAreaDesignRangeHarmoni-zationLogisticPlan•ReduceSG&Aby€30million(cumulative2003-2006)•Reducetotalno.ofSKUs=20%•AreaFormationformalized2003,completed2005KeyPerformanceIndicators“WinninginEurope”15InvestorDay2002-StrategyEurope•adidashomemarket•Marketdominance•“WinninginEurope“asneworganizationalfoundation•Leanerandfaster•BaseforgrowthstrategiestooutgrowcompetitionadidasEurope16InvestorDay2002-StrategyEurope