*PLEASE ANSWER THIS QUESTION CORRECTLY AND FULLY- I HAVE PROVIDED AS MUCH INFORMATION I HAVE IN PHOTOS* Fill out the table below and summarize the results of the analysis using evidence. Refer to the photos and expenditures I provided.

4. Financial statement analysis: Fill out the table below for each of the listed accounts (or activities, and discuss any trends that you notice and what factors may have contributed to changes from year to year. You may find that 'Management's Discussion & Analysis (MD&A)" is useful for understanding trends and changes. Account names Current Years Prior Year $ % Change $ Change Cash Retained Earnings Sales Revenue Cost of Goods Sold Net Income Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities 5. Summarize the results of your analysis FINANCIAL HIGHLIGHTS 2020 (IFRS) Financial Highlights 2020 (IFRS) 2020 2019 Change (16%) (20%) Operating Highlights ( in millions) Net sales Gross profit Other operating expenses EBITDA Operating profit Net income from continuing operations Net income attributable to shareholders 16%) 19.844 9,855 9.229 2,079 751 429 432 23,640 12,293 9.843 3,845 2,660 1.918 1.976 146% 172% 178% (78%) (2.3ppl 4.9 pp Key Ratios Gross margin Other operating expenses in % of net sales Operating margin Effective tax rate Net income attributable to shareholders in % of net sales! Average operating working capital in % of net sales Equity ratio Adjusted net borrowings/EBITDA Financial leverage? Return on equity 2 49.7% 46.5% 3.8% 25.4% 2.2% 23.5% 30.7% 1.5 48.8% 6.7% 52.0% 41.6% 11.3% 25.0% 8.4% 18.1% 32.9% 1.1 61.4% 29.1% 17.5pp) 0.3 pp (6.2 ppl 5.4pp (2.2 ppl n.a (12.6ppl (22.4pp) Balance Sheet and Cash Flow Data ( in millions) E Balance Sheet and Cash Flow Data (cin millions) Total assets Inventories Receivables and other current assets Operating working capital Shareholders' equity Capital expenditure Net cash generated from operating activities 21,053 4,397 3,763 3,960 6,454 442 1,486 20.680 4,085 4.338 4,007 6.796 711 2.819 2% 8% (13%) [1%) 15%) (38%) 147%) Per Share of Common Stock (c) Basic earnings Diluted earnings Net cash generated from operating activities! Dividend Share price at year-end 2.15 2.15 7.62 3.00 297.90 9.70 9.70 14.26 (78%) (78%) 147%) n.a. 289.80 3% Other (at year-end) Number of employees Number of shares outstanding Average number of shares 62,285 195,066,060 195.155.924 65,194 195,969,387 197,606,107 [4%] 0% (1%) 1 Includes continuing and discontinued operations 2 Based on shareholders' equity, 3 Subject to Annual General Meeting approval 4 2019 figure restated due to inclusion of temporary contracts of up to six months (2019 headcounts excluding temporary contracts of up to six months: 59 333). STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS Assets At the end of December 2020, total assets were up 2% to 21.053 billion versus 20.680 billion in the prior year, as the increase in cash and cash equivalents more than offset the decrease in right-of-use assets from leasing agreements due to planned depreciation and amortization. Structure of statement of financial position' in % of total assets 2019 Assets ( in millions Cash and cash equivalents Accounts receivable 2020 21,053 19.0% 9.3% 20.9% 34.0% 20,680 10.7% 12.7% Inventories 19.8% 39.2% Fixed assets Right-of-use assets (IFRS 16) Other assets 33.8% 16.9% 36.2% 17.7% Total current assets increased 11% to 12.154 billion at the end of December 2020 compared to 10.934 billion in 2019. Cash and cash equivalents were up 80% to 3.994 billion at the end of December 2020 from 2.220 billion in the prior year with one main reason being the cash generated through the placement of bonds in the amount of 1.500 billion. Currency effects had a negative impact on cash and cash equivalents in an amount of 75 million. Inventories increased 8% to 4.397 billion at the end of December 2020 from 4.085 billion in 2019. SEE NOTE 09 Inventories in millions 2020 4,397 2019 4,085 2018 3,445 2017 3,692 2016 3.763 On a currency-neutral basis, inventories increased 14%, reflecting the inevitably lower-than-expected product sell-through caused by the temporary broad-based store closures as well as traffic remaining below prior year levels after stores reopened temporarily. Accounts receivable decreased 26% to 1.952 billion at the end of December 2020 (2019. 2.625 billion), reflecting fewer product shipments, the company's efforts to focus on cash collection during the coronavirus pandemic and higher bad debt allowances. On a currency-neutral basis, receivables were down 21%. Other current financial assets increased to 702 million (2019: 544 million), mainly due to an increase in custom claims and short- term deposits. Other current assets were down 7% to 999 million at the end of December 2020 (2019: 1.076 billion). SEE NOTE OZ - SEE NOTE 08 SEE NOTE 10 Accounts receivable in millions 2020 1,952 2019 2,625 2018 2,418 2017 2,315 2016 2,200 Total non-current assets decreased 9% to 8.899 billion at the end of December 2020 from 9.746 billion in 2019, mainly related to lower right-of-use assets from leasing agreements as well as other intangible assets. Fixed assets decreased 12% to 7.149 billion at the end of December 2020 versus 8.100 billion in 2019. as right-of-use assets decreased 17% to 2.430 billion (2019: 2.931 billion) due to depreciation, as well as impairment losses and negative currency effects. Other non-current financial assets decreased 8% to 414 million from 450 million at the end of 2019. Deferred tax assets were up 13% to 1.233 billion from 1.093 billion in 2019. due to the recognition of deferred tax assets on tax losses and movements in taxable and deductible temporary differences.. SEE NOTE 36 Liabilities and equity Total current liabilities increased 1% to 8.827 billion at the end of December 2020 from 8.754 billion in 2019. Short-term borrowings increased to 686 million at the end of December 2020 (2019: 43 million), mainly reflecting the reclassification of a eurobond (nominal value 600 million) due to its maturity in 2021. Accounts payable were down 12% to 2.390 billion at the end of December 2020 versus 2.703 billion in 2019, mainly reflecting the company's effective cost control measures as total operating expenses decreased. On a currency-neutral basis, accounts payable decreased 10%. Current lease liabilities decreased 23% to 563 million at the end of December 2020 versus 733 million in 2019, due to currency effects and temporary broad-based store closures. Other current financial liabilities were up 90% to 446 million from 235 million in 2019. mainly as a result of an increase in the fair value of financial instruments. Other current provisions increased 11% to 1.609 billion at the end of December 2020 versus 1.446 billion in 2019. mainly due to an increase in the provision for returns. Current accrued liabilities were down 11% to 2.172 billion at the end of December 2020 from 2.437 billion in 2019, mainly as a result of reduced accruals for personnel costs as well as outstanding invoices. Other current liabilities were down 26% to 398 million at the end of December 2020 from 538 million in 2019. SEE NOTE 22 SEE NOTE 23 Llabilities and equity Total current liabilities increased 1% to 8.827 billion at the end of December 2020 from 8.754 billion in 2019. Short-term borrowings increased to 686 million at the end of December 2020 (2019: 43 million). mainly reflecting the reclassification of a eurobond (nominal value 600 million) due to its maturity in 2021. Accounts payable were down 12% to 2.390 billion at the end of December 2020 versus 2.703 billion in 2019. mainly reflecting the company's effective cost control measures as total operating expenses decreased. On a currency-neutral basis, accounts payable decreased 10%. Current lease liabilities decreased 23% to 563 million at the end of December 2020 versus 733 million in 2019, due to currency effects and temporary broad-based store closures. Other current financial liabilities were up 90% to 446 million from 235 million in 2019. mainly as a result of an increase in the fair value of financial instruments. Other current provisions increased 11% to 1.609 billion at the end of December 2020 versus 1.446 billion in 2019. mainly due to an increase in the provision for returns. Current accrued Liabilities were down 11% to 2.172 billion at the end of December 2020 from 2.437 billion in 2019, mainly as a result of reduced accruals for personnel costs as well as outstanding invoices. Other current Liabilities were down 26% to 398 million at the end of December 2020 from 538 million in 2019. SEE NOTE 22 SEE NOTE 23 Structure of statement of financial position in % of total abilities and equity 2020 2019 20,680 0.2% Liabilities and equity le in millions! Short-term borrowings Accounts payable Long-term borrowings Other liabilities Current and non-current lease liabilities (IFRS 16)2 Total equity 21,053 3.3% 11.4% 11.8% 41.8% 30.9% 31.8% 13.1% 7.7% 44.9% 33.8% 34.1% 1 For absolute figures see adidas AG Consolidated Statement of Financial Position 2 As a percentage of other liabilities, Accounts payable in millions 2020 2,390 2019 2,703 2018 2,300 2017 1.975 2016 2,496 Total non-current liabilities increased 14% to 5.535 billion at the end of December 2020 from 4.868 billion in the prior year, reflecting various bond placements in the second half of the year. Consequently, long-term borrowings were up 56% to 2.482 billion at the end of December 2020 from 1.595 billion in the prior year. Non-current lease liabilities decreased 10% to 2.159 billion at the end of December 2020 from 2.399 billion in the prior year, due to temporary store closures as well as currency effects. Other non-current financial liabilities were up 24% to 115 million at the end of December 2020 from 92 million in the prior year. Other non-current provisions decreased 11% to 229 million at the end of December 2020 from 257 million in the prior year, mainly as a result of reduced provisions for personnel. SEE NOTE 24 Shareholders' equity decreased 5% to 6.454 billion at the end of December 2020 versus 6.796 billion in 2019, mainly due to the share repurchases at the beginning of the year. Consequently, the equity ratio decreased to 30.7% compared to 32.9% in the prior year. - SEE NOTE 27 Equity ratio in % 2020 30.7 2019 32.9 2018 40.8 2017 43.0 2016 42.6 1 Application of IFRS 16 as of January 1, 2019. Prior year figures are not restated. 2 Based on shareholders' equity As a result of all these developments, cash and cash equivalents increased by 1.774 billion to 3.994 billion at the end of December 2020 compared to 2.220 billion at the end of December 2019, Adjusted net borrowings at December 31, 2020 amounted to 3.148 billion, compared to 4.173 billion in 2019. The company's ratio of adjusted net borrowings over EBITDA amounted to 1.5 at the end of December 2020 2019: 1.1). In 2020, the definition of the ratio net borrowings over EBITDA was changed to adjusted net borrowings over EBITDA to reflect changes in the company's Financial Policy. The most significant difference between the previous net debt definition and the new adjusted net borrowing definition is the inclusion of the present value of future lease and pension Liabilities. - SEE TREASURY Change in cash and cash equivalents Cin millions Cash and cash equivalents at the end of 2019 Net cash generated from operating activities Net cash used in investing activities Net cash generated from financing activities Effect of exchange rates Cash and cash equivalents at the end of 2020 479 3.994 1.486 (75) 11151 2,220 Adjusted net borrowings/EBITDA2 in milions Adjusted net borrowings/EBITDA2 in millions 2020 1.5 2019 2018 10.3 2017 10,2) 2016 1 Application of IFRS 16 as of January 1, 2019. Prior year figures are not restated. 2 First-time application of adjusted net borrowings as of 2020. Only figure for 2019 restated. Off-balance-sheet Items The company's most significant off-balance-sheet items are commitments for promotion and advertising as well as other contracts. These contracts are related to short-term leases as well as leases for offices and warehouses, which are not yet considered according to IFRS 16. Minimum future payments for other contracts were 323 million at December 31, 2020, compared to 318 million at the end of December 2019, representing an increase of 2%. At the end of December 2020, financial commitments for promotion and advertising decreased 13% to 5.948 billion in 2020 (2019: 6.808 billion). - SEE NOTE 39 - SEE NOTE 40 4. Financial statement analysis: Fill out the table below for each of the listed accounts (or activities, and discuss any trends that you notice and what factors may have contributed to changes from year to year. You may find that 'Management's Discussion & Analysis (MD&A)" is useful for understanding trends and changes. Account names Current Years Prior Year $ % Change $ Change Cash Retained Earnings Sales Revenue Cost of Goods Sold Net Income Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities 5. Summarize the results of your analysis FINANCIAL HIGHLIGHTS 2020 (IFRS) Financial Highlights 2020 (IFRS) 2020 2019 Change (16%) (20%) Operating Highlights ( in millions) Net sales Gross profit Other operating expenses EBITDA Operating profit Net income from continuing operations Net income attributable to shareholders 16%) 19.844 9,855 9.229 2,079 751 429 432 23,640 12,293 9.843 3,845 2,660 1.918 1.976 146% 172% 178% (78%) (2.3ppl 4.9 pp Key Ratios Gross margin Other operating expenses in % of net sales Operating margin Effective tax rate Net income attributable to shareholders in % of net sales! Average operating working capital in % of net sales Equity ratio Adjusted net borrowings/EBITDA Financial leverage? Return on equity 2 49.7% 46.5% 3.8% 25.4% 2.2% 23.5% 30.7% 1.5 48.8% 6.7% 52.0% 41.6% 11.3% 25.0% 8.4% 18.1% 32.9% 1.1 61.4% 29.1% 17.5pp) 0.3 pp (6.2 ppl 5.4pp (2.2 ppl n.a (12.6ppl (22.4pp) Balance Sheet and Cash Flow Data ( in millions) E Balance Sheet and Cash Flow Data (cin millions) Total assets Inventories Receivables and other current assets Operating working capital Shareholders' equity Capital expenditure Net cash generated from operating activities 21,053 4,397 3,763 3,960 6,454 442 1,486 20.680 4,085 4.338 4,007 6.796 711 2.819 2% 8% (13%) [1%) 15%) (38%) 147%) Per Share of Common Stock (c) Basic earnings Diluted earnings Net cash generated from operating activities! Dividend Share price at year-end 2.15 2.15 7.62 3.00 297.90 9.70 9.70 14.26 (78%) (78%) 147%) n.a. 289.80 3% Other (at year-end) Number of employees Number of shares outstanding Average number of shares 62,285 195,066,060 195.155.924 65,194 195,969,387 197,606,107 [4%] 0% (1%) 1 Includes continuing and discontinued operations 2 Based on shareholders' equity, 3 Subject to Annual General Meeting approval 4 2019 figure restated due to inclusion of temporary contracts of up to six months (2019 headcounts excluding temporary contracts of up to six months: 59 333). STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS Assets At the end of December 2020, total assets were up 2% to 21.053 billion versus 20.680 billion in the prior year, as the increase in cash and cash equivalents more than offset the decrease in right-of-use assets from leasing agreements due to planned depreciation and amortization. Structure of statement of financial position' in % of total assets 2019 Assets ( in millions Cash and cash equivalents Accounts receivable 2020 21,053 19.0% 9.3% 20.9% 34.0% 20,680 10.7% 12.7% Inventories 19.8% 39.2% Fixed assets Right-of-use assets (IFRS 16) Other assets 33.8% 16.9% 36.2% 17.7% Total current assets increased 11% to 12.154 billion at the end of December 2020 compared to 10.934 billion in 2019. Cash and cash equivalents were up 80% to 3.994 billion at the end of December 2020 from 2.220 billion in the prior year with one main reason being the cash generated through the placement of bonds in the amount of 1.500 billion. Currency effects had a negative impact on cash and cash equivalents in an amount of 75 million. Inventories increased 8% to 4.397 billion at the end of December 2020 from 4.085 billion in 2019. SEE NOTE 09 Inventories in millions 2020 4,397 2019 4,085 2018 3,445 2017 3,692 2016 3.763 On a currency-neutral basis, inventories increased 14%, reflecting the inevitably lower-than-expected product sell-through caused by the temporary broad-based store closures as well as traffic remaining below prior year levels after stores reopened temporarily. Accounts receivable decreased 26% to 1.952 billion at the end of December 2020 (2019. 2.625 billion), reflecting fewer product shipments, the company's efforts to focus on cash collection during the coronavirus pandemic and higher bad debt allowances. On a currency-neutral basis, receivables were down 21%. Other current financial assets increased to 702 million (2019: 544 million), mainly due to an increase in custom claims and short- term deposits. Other current assets were down 7% to 999 million at the end of December 2020 (2019: 1.076 billion). SEE NOTE OZ - SEE NOTE 08 SEE NOTE 10 Accounts receivable in millions 2020 1,952 2019 2,625 2018 2,418 2017 2,315 2016 2,200 Total non-current assets decreased 9% to 8.899 billion at the end of December 2020 from 9.746 billion in 2019, mainly related to lower right-of-use assets from leasing agreements as well as other intangible assets. Fixed assets decreased 12% to 7.149 billion at the end of December 2020 versus 8.100 billion in 2019. as right-of-use assets decreased 17% to 2.430 billion (2019: 2.931 billion) due to depreciation, as well as impairment losses and negative currency effects. Other non-current financial assets decreased 8% to 414 million from 450 million at the end of 2019. Deferred tax assets were up 13% to 1.233 billion from 1.093 billion in 2019. due to the recognition of deferred tax assets on tax losses and movements in taxable and deductible temporary differences.. SEE NOTE 36 Liabilities and equity Total current liabilities increased 1% to 8.827 billion at the end of December 2020 from 8.754 billion in 2019. Short-term borrowings increased to 686 million at the end of December 2020 (2019: 43 million), mainly reflecting the reclassification of a eurobond (nominal value 600 million) due to its maturity in 2021. Accounts payable were down 12% to 2.390 billion at the end of December 2020 versus 2.703 billion in 2019, mainly reflecting the company's effective cost control measures as total operating expenses decreased. On a currency-neutral basis, accounts payable decreased 10%. Current lease liabilities decreased 23% to 563 million at the end of December 2020 versus 733 million in 2019, due to currency effects and temporary broad-based store closures. Other current financial liabilities were up 90% to 446 million from 235 million in 2019. mainly as a result of an increase in the fair value of financial instruments. Other current provisions increased 11% to 1.609 billion at the end of December 2020 versus 1.446 billion in 2019. mainly due to an increase in the provision for returns. Current accrued liabilities were down 11% to 2.172 billion at the end of December 2020 from 2.437 billion in 2019, mainly as a result of reduced accruals for personnel costs as well as outstanding invoices. Other current liabilities were down 26% to 398 million at the end of December 2020 from 538 million in 2019. SEE NOTE 22 SEE NOTE 23 Llabilities and equity Total current liabilities increased 1% to 8.827 billion at the end of December 2020 from 8.754 billion in 2019. Short-term borrowings increased to 686 million at the end of December 2020 (2019: 43 million). mainly reflecting the reclassification of a eurobond (nominal value 600 million) due to its maturity in 2021. Accounts payable were down 12% to 2.390 billion at the end of December 2020 versus 2.703 billion in 2019. mainly reflecting the company's effective cost control measures as total operating expenses decreased. On a currency-neutral basis, accounts payable decreased 10%. Current lease liabilities decreased 23% to 563 million at the end of December 2020 versus 733 million in 2019, due to currency effects and temporary broad-based store closures. Other current financial liabilities were up 90% to 446 million from 235 million in 2019. mainly as a result of an increase in the fair value of financial instruments. Other current provisions increased 11% to 1.609 billion at the end of December 2020 versus 1.446 billion in 2019. mainly due to an increase in the provision for returns. Current accrued Liabilities were down 11% to 2.172 billion at the end of December 2020 from 2.437 billion in 2019, mainly as a result of reduced accruals for personnel costs as well as outstanding invoices. Other current Liabilities were down 26% to 398 million at the end of December 2020 from 538 million in 2019. SEE NOTE 22 SEE NOTE 23 Structure of statement of financial position in % of total abilities and equity 2020 2019 20,680 0.2% Liabilities and equity le in millions! Short-term borrowings Accounts payable Long-term borrowings Other liabilities Current and non-current lease liabilities (IFRS 16)2 Total equity 21,053 3.3% 11.4% 11.8% 41.8% 30.9% 31.8% 13.1% 7.7% 44.9% 33.8% 34.1% 1 For absolute figures see adidas AG Consolidated Statement of Financial Position 2 As a percentage of other liabilities, Accounts payable in millions 2020 2,390 2019 2,703 2018 2,300 2017 1.975 2016 2,496 Total non-current liabilities increased 14% to 5.535 billion at the end of December 2020 from 4.868 billion in the prior year, reflecting various bond placements in the second half of the year. Consequently, long-term borrowings were up 56% to 2.482 billion at the end of December 2020 from 1.595 billion in the prior year. Non-current lease liabilities decreased 10% to 2.159 billion at the end of December 2020 from 2.399 billion in the prior year, due to temporary store closures as well as currency effects. Other non-current financial liabilities were up 24% to 115 million at the end of December 2020 from 92 million in the prior year. Other non-current provisions decreased 11% to 229 million at the end of December 2020 from 257 million in the prior year, mainly as a result of reduced provisions for personnel. SEE NOTE 24 Shareholders' equity decreased 5% to 6.454 billion at the end of December 2020 versus 6.796 billion in 2019, mainly due to the share repurchases at the beginning of the year. Consequently, the equity ratio decreased to 30.7% compared to 32.9% in the prior year. - SEE NOTE 27 Equity ratio in % 2020 30.7 2019 32.9 2018 40.8 2017 43.0 2016 42.6 1 Application of IFRS 16 as of January 1, 2019. Prior year figures are not restated. 2 Based on shareholders' equity As a result of all these developments, cash and cash equivalents increased by 1.774 billion to 3.994 billion at the end of December 2020 compared to 2.220 billion at the end of December 2019, Adjusted net borrowings at December 31, 2020 amounted to 3.148 billion, compared to 4.173 billion in 2019. The company's ratio of adjusted net borrowings over EBITDA amounted to 1.5 at the end of December 2020 2019: 1.1). In 2020, the definition of the ratio net borrowings over EBITDA was changed to adjusted net borrowings over EBITDA to reflect changes in the company's Financial Policy. The most significant difference between the previous net debt definition and the new adjusted net borrowing definition is the inclusion of the present value of future lease and pension Liabilities. - SEE TREASURY Change in cash and cash equivalents Cin millions Cash and cash equivalents at the end of 2019 Net cash generated from operating activities Net cash used in investing activities Net cash generated from financing activities Effect of exchange rates Cash and cash equivalents at the end of 2020 479 3.994 1.486 (75) 11151 2,220 Adjusted net borrowings/EBITDA2 in milions Adjusted net borrowings/EBITDA2 in millions 2020 1.5 2019 2018 10.3 2017 10,2) 2016 1 Application of IFRS 16 as of January 1, 2019. Prior year figures are not restated. 2 First-time application of adjusted net borrowings as of 2020. Only figure for 2019 restated. Off-balance-sheet Items The company's most significant off-balance-sheet items are commitments for promotion and advertising as well as other contracts. These contracts are related to short-term leases as well as leases for offices and warehouses, which are not yet considered according to IFRS 16. Minimum future payments for other contracts were 323 million at December 31, 2020, compared to 318 million at the end of December 2019, representing an increase of 2%. At the end of December 2020, financial commitments for promotion and advertising decreased 13% to 5.948 billion in 2020 (2019: 6.808 billion). - SEE NOTE 39 - SEE NOTE 40