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1 PERFORMANCE 42

2 PERFORMANCE Supply Chain 1. Number of supplier factories In the course of any calendar year there is a notable movement of factories, as suppliers are added or removed, because business entities are created, bought or sold by the adidas Group, or intermediaries, such as agents, are hired or their services are terminated. The data we are reporting here is a snapshot in time, a static point capturing the situation at the end of 12 months of these movements. Data is presented on a year-on-year basis, as at the 31st December. In 2011, we worked with 1,232 independent factories (excluding factories of our licensees) who manufacture adidas Group products in 63 countries. 67% of the factories are located in the Asia Pacific region, 20% in the Americas and 13% in Europe, Middle East and Africa (EMEA). Over one quarter, or exactly 28%, of all these factories are in China. The total number of supplier factories is almost the same as in It is estimated however that over the course of 2011 approximately 20% of the supply chain turned over, with supplier factories being added and exited in equal number. Number of supplier factories (excluding own factories and licensee factories) Asia Americas EMEA TOTAL , , ,232 Supplier factories by region in 2011 (excluding own factories and licensee factories) emea (13%) americas (20%) asia (67%) 43

3 2. Factories by country Compared with year-on-year data for 2010, there was an almost unchanged number of total factories worldwide. There are many reasons for the lack of change in total numbers of factories while increasing or decreasing at national levels. The trend in Brazil is fewer new factories, but improved compliance by existing business entities with fuller disclosure of manufacturing locations. In Asia Pacific region, Indonesia and Vietnam grew marginally, a response to higher operating costs in China. In China, additional factories have been added as suppliers have built secondary facilities to access labour in more remote locations, while retaining their existing coastal manufacturing facilities as product development and management hubs. There has also been a marked decline in the number of factories in other countries. In India, we have seen factory consolidation following the Group s integration of local sourcing activities by brand adidas and Reebok. There has also been rationalisation of the supply chain in South Korea, Taiwan and Thailand. Number of supplier factories per country 1 ASIA Total number of factories Country Australia Bangladesh Cambodia China Hong Kong India Indonesia Japan Korea Laos Macao Madagascar Malaysia Mauritius New Zealand Pakistan Philippines Singapore Sri Lanka Taiwan Thailand Vietnam Total Asia AMERICAS Total number of factories Country Argentina Brazil Canada Chile Colombia Costa Rica Dominican Republic El Salvador Guatemala Haiti Honduras Mexico Nicaragua Paraguay Peru United States Total Americas

4 EMEA Total number of factories Country Belarus Belgium Bosnia and Herzegovina Bulgaria Czech Republic Denmark Egypt Finland France Georgia Germany Greece Hungary Israel Italy Jordan Lesotho Lithuania Macedonia Moldova Poland Portugal Romania Russia Slovakia Slovenia South Africa Spain Swaziland Sweden Switzerland Tunisia Turkey Ukraine United Kingdom Zimbabwe Total EMEA GLOBAL Total number of factories Country Total Asia Total Americas Total EMEA Total Global 1,128 1,236 1,232 1 Independent supplier production sites of the adidas Group, excluding licensee factories and own production sites. 45

5 3. adidas Group licensees In 2011, the adidas Group worked with 44 licensees whose suppliers manufactured products in 269 factories in 45 countries. The total number of licensee factories is lower than the number reported in 2010, but the number of sourcing countries remains similar. In some cases the factories producing for licensees of cosmetics, watches and glasses, are very stable, highly capitalised, and specialised manufacturing facilities. A majority of the licensees are however apparel producers and as with the adidas Group s own direct sourcing arrangements licensees see expansion and contraction of the numbers of factories throughout the course of a year. For this reason, the data we are reporting here is a snapshot in time, a static point capturing the situation at the end of 12 months of these movements. adidas Group Licensees Licensees Factories producing for licensees 1 Production countries this might include factories which produce both, for the adidas Group directly as well as for licensees/agents. adidas and Reebok licensees divided by product range in 2011 footwear (5%) Watches (2%) Glasses (2%) cosmetics (2%) Hardware (30%) apparel (59%) Audits and Training 4. number of factory audits/visits and training sessions During 2011, 1,591 factory visits (including 1,501 factory audits) were undertaken for management and worker interviews, reviews of policies, practices and documents, facility inspections and training sessions at different levels in our supply chain. The SEA team conducted 170 training sessions and workshops for suppliers, licensees, workers and adidas Group employees. Number of factory audits/visits and trainings* Factory audits/visits 1,592 1,451 1,591 Trainings * Including multiple audits/visits in the same factory conducted by the adidas Group SEA team and external monitors, but excluding FLA audits. Including audits in licensee factories; visits involving management and worker interviews, document review, facility inspections and trainings on-site. Audit data for 2011 includes environmental audits conducted at supplier sites; these were not recorded in previous data sets. 46

6 5. number of training sessions divided by region and type For 2011, there were fewer training sessions conducted by SEA than in the previous two years, but the number of training participants increased significantly, nearly 800 people more. The number of fundamental and performance training sessions was reduced, whereas sustainability training sessions increased slightly. Reasons for this were: 1. There were less individual but more group (i.e. more than one supplier) training sessions undertaken that offer both higher efficiencies but also the added advantage of cross-learning and best practice sharing among suppliers. 2. Due to longer term and more mature business relationships, the demand for more sophisticated and advanced trainings (sustainability training sessions) was achieved. Number of training sessions divided by region and type 1 Type and number of training Fundamental 2 Performance 3 Sustainability 4 Total Region Asia Americas EMEA Total trainings conducted for suppliers, workers, licensees, agents and adidas Group employees. 2 fundamental training covers: Workplace Standards & SEA introduction; FFC training; SEA policies & SOPs. 3 Performance training covers: Specific labour, health, safety and environmental issues. 4 sustainability training covers: Sustainable compliance guideline & KPI improvement; Factory Self-Audits (factory internal audits). 5 In 2011, nearly 3,000 people participated in these trainings. 6 Including 83 group training sessions, i.e. trainings with participation of more than one supplier, business entity or licensee. Supplier trainings by type in 2011 fundamental (45%) Performance (20%) sustainability (35%) 6. Number of audits divided by region and type In 2011, the SEA team conducted 1,501 social compliance and environmental audits (including external monitoring audits). The total number of Initial Assessments the first approval stage for new entry factories and Performance Audits for our established suppliers was slightly higher than in As a new category, we added the number of Environmental Audits conducted at supplier sites. Already in 2010 more than 100 environmental audits and verification visits took place. We recorded and disclosed them separately in last year s report but added them in the below table for reasons of completeness and transparency. In order to not change all tables and graphs that were published last year, we decided to exclude the 2010 environmental data from the total 2010 number. In addition to these audits, suppliers sites were the subject of multiple other visits by compliance staff to discuss specific remedial issues, to follow up project work or conduct training sessions. Meeting the high demand for Initial Assessments remained a challenge in 2011, particularly in Asia Pacific where new factories were proposed in more remote locations and a wide range of countries. There was a total of 476 Initial Assessments, of which about 80% were in Asia, with China accounting for nearly 50% of all assessments conducted. Overall 20.8% of candidate factories were rejected either out rightly, or for failure to remediate threshold issues in a timely manner. 47

7 But this number also includes factories that were rejected but given a second chance to remediate non-compliances. At the end of 2011, these factories were neither rejected nor accepted but in a status of Rejected with a Second Visit. See also data on Termination and Rejections. The rejection rate reported during the last three years actually represents a much lower figure than our real first time rejection rate due to the reporting limitations of our compliance database, the FFC. Therefore, in 2011, we were only able to look at the final designation of the factories and not include those who had a preliminary rejection but successfully completed a remediation and were subsequently SEA accepted. We know that we have many factories which had been SEA Rejected with Second Visit after Initial Assessment. In 2012, we will be able to accurately report a first time rejection rate. Audits conducted by external monitors were commissioned by adidas Group entities, including licensees with indirect sourcing models. In total, there was audit coverage of 61% of all active suppliers in 2011, which signifies an increase by 3% compared to The audit coverage of all active suppliers in region Asia increased by 3% to a total of 77%, with higher risk countries like China, India, Indonesia, Thailand and Vietnam showing more than 80% audit coverage. Our monitoring programme is characterised by a risk management approach this means that we explicitly do not envisage audit coverage of 100% in every country where our factories are located. Number of audits divided by region and type Initial Assessments 1 Performance Audits 2 Environmental Audits Region Asia (118) 114 1,261 1,142 1,285 Americas EMEA Total (118) 114 1,448 1,350 1,501 1 every new supplier factory has to pass an Initial Assessment to prove compliance with the Workplace Standards prior to order placement. 2 audits conducted in approved supplier factories. 3 Includes audits done in licensee factories. In addition, there was a considerable number of full environmental assessments conducted for selected suppliers in Asia. 4 the number of Environmental Audits was recorded and disclosed separately in 2010; therefore it is not included in the total number of audits for Total Number of audits in supplier factories SEA Team External Monitor Total 1,261 1,448 1,350 1,501 48

8 Initial Assessments by Country Asia Americas EMEA Bangladesh 14 Argentina 7 Belarus 2 Cambodia 7 Brazil 5 Bosnia and Herzegovina 1 China 234 Canada 2 Egypt 9 India 19 Costa Rica 1 Georgia 1 Indonesia 27 Dominican Republic 2 Jordan 1 Japan 2 El Salvador 3 Kenya 1 Korea 8 Guatemala 4 Russia 1 Malaysia 4 Honduras 2 South Africa 1 Mauritius 2 Mexico 12 Tunisia 1 Pakistan 7 Nicaragua 5 Turkey 10 Philippines 9 Paraguay 5 Ukraine 1 Sri Lanka 2 United States 2 United Kingdom 16 Taiwan 9 Thailand 7 Vietnam 30 Asia Total 381 Americas Total 50 EMEA Total number of audits conducted in licensee factories The lower number of Initial Assessments indicates a fewer number of new entries to the supply chain and as shown in Section 3, the total number of factories making for licensees has shrunk by a little over 12% between 2010 and Although the number of Performance Audits declined compared to 2010, these represented a higher percentage of licensee suppliers being subject to more in-depth compliance work. Number of audits conducted in licensee factories 1 Initial Assessments 2 Performance Audits 3 Environmental Audits 4 Region Asia Americas EMEA Total this might include factories which produce both, for the adidas Group directly as well as for licensees/agents. 2 every new factory has to pass an Initial Assessment to prove compliance with the Workplace Standards prior to order placement. 3 audits conducted in approved factories. 4 environmental Audits in licensee factories were recorded and disclosed as such for the first time in Total Number of audits in licensee factories by region Asia Americas EMEA

9 Number of audits in licensee factories by audit type IA PA EA Total Key Performance Indicator (KPI) Assessment and C-Rating We audit our suppliers against our Standards and rate them according to their performance. We use an innovative way to rate the supplier on its ability to deliver fair, healthy and environmentally-sound workplace conditions in an effective manner. The following table shows the average audit score by unit of measure for those active core suppliers that were rated against the six units of measure in the KPI to date. Each unit of measure is scored out of 100%. In general, the units of measure showed higher scores achieved in 2011, especially in management commitment/responsiveness and management systems. This illustrates the take-up from our engagement with suppliers to implement human resources and health & safety management systems in their workplaces. KPI Assessment and C-Rating KPI Unit of Measure Average score in % Management commitment and responsiveness Management systems Worker-management communication and industrial relations Compliance training for workers and management Transparency in communication and reporting Compliance performance KPI Cumulative Score In 2010, we have adjusted our C-Rating system for factory assessment, raising the bar for factory performance and increasing the 2C threshold to an average score of 30% or more. The revised clustering for our C-Ratings is shown below. KPI score (%) New C-Rating C C C C C 50

10 The bar graph below shows comparable data for the past three years using the new rating classification. The number of factories that were the subject of KPI assessments to date in each specific year is indicated in the footnote. For 2011, we see that from 2005, where we started to assess suppliers with the KPI assessment tool, to date more than 571 active suppliers were KPI-assessed. In 2011, SEA increased the issuance of warning letters to non-performing suppliers, where serious and ongoing issues were not resolved despite close engagement. A warning letter has an immediate negative impact to a factory s KPI score, hence the increased number of 2C suppliers overall. There was some improvement by poorly performing 1C suppliers, and this too contributed to an increased number of factories graded 2C. The total number of 3C and 4C factories increased, but in percentage terms this is masked by the number of new entry factories that received low initial KPI scores in the 2C range. A parallel environmental KPI tool has been developed and is being tested. From 2012 we will begin to report environmental ratings of Tier 1 manufacturing operations and Tier 2 material suppliers. Percentage of KPI-assessed factories by C-Rating* C 2-C 3-C 4-C 5-C % 40% 29% 9% 1% % 48% 25% 7% 1% % 53% 28% 9% 2% * Number of factories that were KPI-assessed to date: 2009 (347), 2010 (547) and 2011 (571). 9. Independent FLA audits Since joining the FLA in 1999, more than 280 Independent External Monitoring (IEM) audits and verification visits have been conducted at adidas Group suppliers. The number of conventional independent monitoring visits conducted by FLA accredited monitors has gone down because more of the conventional IEM requirements of the FLA have been redirected to an engagement in value-added FLA projects focused on reducing and eliminating chronic non-compliance issues or improving monitoring methodologies. In 2011, FLA activities included one independent external monitoring visit and four verification visits. Seven factories participated in one FLA special project in Asia and the Americas. These so-called re-directed audits are FLA participating company engagements in specific project work that addresses resolution of chronic compliance issues in the global workplace and the development of new auditing tools and methodologies, such as the Sustainable Compliance Initiative, which will standardise labour, health & safety monitoring practices and content across a number of FLA participating brands. Re-directs are substituted for independent external monitoring visits to factories. This substitution option is only available to FLA accredited programmes. The term derives from the re-direction of IEM fees to financially support specific project work by the FLA to address chronic compliance issues. Independent FLA Audits 1 FLA Year Period No. of Audits 4th 2 Jan Dec th Jan Dec th Jan Dec th Jan Dec th Jan Dec th Jan Dec th Jan Dec as part of the FLA membership; the numbers include Independent External Verification audits. 2 Including audits conducted for Reebok before it was acquired by the adidas Group in

11 Enforcement 10. Warning letters Warning letters are an essential part of our enforcement efforts and are triggered when we find ongoing serious non-compliance issues that need to be addressed by our suppliers. In 2011, we issued a total of 48 warning letters across eight countries. The largest number of warning letters continued to be issued in Asia, where nearly 70% of all supplier factories are located. Compared to the previous year, the number of first warning letters has dropped from 47 to 41 but the number of second warning letters increased from 2 to 7. This reflects SEA s overall efforts in 2011 to raise the bar on supplier performance, with reduced tolerance for ongoing non-compliances. Suppliers who receive second warning letters have one step left before notification of possible termination of the manufacturing agreement and they receive focused monitoring activity by SEA. It is difficult to generalise as to the grounds for a warning letter, as this may be issued based on a single non-conformance which is unresolved, or multiple breaches of our Standards. The range of issues that resulted in warning letters in 2011 included poor management commitment, excessive working hours, non-payment of wages and benefits, poor electrical, fire or chemical safety, poor communication and transparency problems. Number of warning letters issued to adidas Group suppliers* 1st Warning 2nd Warning 3rd and Final Warning > recommended termination Total Warning Letters Country Argentina 1 1 Bangladesh Cambodia China Guatemala 1 1 India Indonesia Korea 1 1 Mexico Nicaragua 1 1 Pakistan 1 1 Peru Philippines 4 4 Sri Lanka 1 1 Syrian Arab Rep. 1 1 Thailand 1 1 Vietnam Total * Including warning letters issued by licensees and agents. But excluding warnings to main suppliers for the non-disclosure of subcontractors, which is issued either directly through business entities, or by the adidas Group legal department where there is a breach of contract obligations under a manufacturing agreement. 11. Terminations and Rejections We work closely with our suppliers to help them improve their performance. However, in the past where we have faced situations of severe or repeat non-compliance we have terminated our business relationship with suppliers. In 2011, we terminated agreements with thirteen suppliers for compliance reasons. We also work closely with Global Operations and other business entities to pre-screen potential new suppliers. Our so-called Initial Assessments are uncovering threshold or zero tolerance issues. A total of 476 Initial Assessments were conducted in On 31 December 2011, we identified that during the reporting period 99 factories have been either rejected directly after an Initial Assessment due to zero tolerance issues, or they were in a status of rejected with a second visit at the end of 2011, which means they were rejected after the Initial Assessment but given the chance to remediate non-compliance issues in a specific timeframe. Suppliers who have threshold issues (that is, serious but remediable non-compliances) are given three months to remediate those issues prior to re-auditing for final SEA acceptance. As a result, at the end of 2011, 20.8% of potential new supplier factories were rejected for threshold or zero-tolerance non-compliance issues. As in previous years, China dominates the number of new supplier initial assessments and corresponding rejection rates are high. In India, newly disclosed or proposed suppliers were also subject to rigorous assessments and due to weak remedial efforts resulting in a high rejection rate. 52

12 The rejection rate reported during the last three years actually represents a much lower figure than our real first time rejection rate due to the reporting limitations of our compliance database, the FFC. Therefore, in 2011, we were only able to look at the final designation of the factories and not include those who had a preliminary rejection but successfully completed a remediation and were subsequently SEA accepted. We know that we have several factories which had been SEA Rejected with Second Visit after Initial Assessment. In 2012, we will be able to accurately report a first time rejection rate. Rejections by region after Initial Assessment due to compliance problems Asia Americas EMEA TOTAL Number of business relationship terminations/rejections after Initial Assessment due to compliance problems ASIA No. of terminations per country No. of rejections after IA per country Country Bangladesh Cambodia China India Indonesia Korea 2 2 Malaysia 1 1 Pakistan 2 1 Philippines 1 Sri Lanka 2 Thailand 1 2 Vietnam AMERICAS No. of terminations per country No. of rejections after IA per country Country Brazil Canada 2 Dominican Republic 1 El Salvador 1 Guatemala 4 Honduras 1 Mexico Nicaragua 2 53

13 EMEA No. of terminations per country No. of rejections after IA per country Country Belarus 1 1 Egypt Jordan Russia 3 South Africa 2 Turkey Ukraine 1 Zimbabwe 1 GLOBAL No. of terminations per country No. of rejections after IA per country Global Environment 12. Certifications obtained by athletic footwear supplier sites producing for the international market We have limited control over the direct environmental impacts of the manufacturing process and how our suppliers act. The best way to influence the environmental impacts at our suppliers factories is to encourage the introduction of environmental management systems, and we have made implementing such a system mandatory for all our core suppliers. Achieving certification to a management system requires factory managers to plan, manage and review their own environmental performance. In 2011, we worked with 27 athletic footwear suppliers who are certified in accordance with the international environmental management standard ISO and/or the workplace health & safety management standard OHSAS These suppliers produced around 84% of the adidas Group s global athletic footwear sourcing volume. Certifications obtained by athletic footwear supplier sites producing for the international market 1 Number of FW suppliers ISO OHSAS Country Argentina Brazil Cambodia 1 1 China Germany India Indonesia Italy Philippines 1 Thailand 1 Vietnam TOTAL excluding factories from the Rockport business segment and licensee factories. 2 The site is subject to regular occupational health & safety inspections by authorities, although it does not hold a formal OHSAS certification. 3 Health & safety management system in place that is regularly inspected by local authorities. 54

14 Certification of athletic footwear suppliers producing for the international export market in % 72% 69% 66% 63% 60% 57% 54% 51% ISO OHSAS % 59% % 60% % 67% 13. freight types used to ship adidas and Reebok products In 2011, we continued to register the environmental impact related to the transport of our goods. The relative use of air freight was slightly reduced for Apparel and Hardware, but increased slightly for Footwear. Freight types used to ship adidas and Reebok products 1 % of product shipped Apparel Truck Sea freight Air freight Sea and air freight Hardware 2 Truck Sea freight Air freight Sea and air freight Footwear Truck Sea freight Air freight Sea and air freight figures expressed as a percentage of the total number of products transported. Data covers products sourced through Global Operations, excluding local sourcing. Data for 2011 refers to adidas and Reebok products, while in earlier years only adidas brand was covered. 2 Accessories and gear. 55

15 14. GREEN COMPANY DATA Following our vision to become a zero emission company, the Green Company Initiative was launched in This Initiative aims at improving the environmental performance at our own operations around the world. To achieve this goal, specific Groupwide targets were set in 2009 that focus on our administration offices, our distribution centres and manufacturing sites that we own, lease or rent. Since 2008 we have been specifically measuring the environmental footprint of our own locations and we have steadily increased the number of locations covered by our programme. A new data environmental reporting and management tool for our own sites and for our suppliers has been introduced for the first time for the 2011 reporting period. All data collected is automatically compared with the data reported in previous years. Furthermore, the tool can be used to calculate KPIs and to follow up on targets, and it includes a library that features best practice solutions. The reports, including their complete data sets from reporting locations, have been migrated to the new reporting tool which enables us to: Track and evaluate progress of our performance Follow up and report on our targets Learn from best practice. In 2011, we reduced the number of sites that were included in the reporting. The original goal of having around 70 80% coverage of all in-house emissions remains unchanged. The locations that have been removed from reporting are sites that were either closing down in 2011, contributed less than 0.5% of total emissions or were located in buildings where the limitations of their tenancy contract meant they could not calculate specific resource use or emissions. It was scheduled to publish the detailed Green Company performance review highlighting the achievements and progress of the Group s Green Company programme together with the entire Sustainability Progress Report When reviewing the environmental data sets as submitted by the business entities through the new environmental data tool, we noticed a range of deviations in data sets from previous years that have required us to conduct an accurate analysis to identify the root causes. At the cut-off date for completion of the Sustainability Progress Report 2011, this review and analysis was still ongoing. So, the 2011 Green Company performance review will be published at a later date in the year The review will be posted in the Green Company section of our corporate website at Company_programme/default.aspx Employees 15. Employee Statistics Global employee base continues to grow On 31 December 2011, the Group had 46,824 employees, which represents an increase of 10% versus 42,541 in the previous year. This development is primarily related to the expansion of the Group s own-retail activities in emerging markets. An increase in the sales force as well as additional hirings within our Global Operations function, in order to support the Group s sales growth, also contributed to the overall increase in the number of employees. Furthermore, a change in the internal definition of full-time equivalents also impacted this development. On a full-time equivalent basis, our Group had 40,637 employees on 31 December 2011 (2010: 36,444). Due to the high share of employees working on a part-time basis in the Retail segment, this figure is lower than the figure reported on a headcount basis. At the end of 2011, 23% of our Group s staff were employed in Western Europe (2010: 23%), 33% in European Emerging Markets (2010: 34%), 25% in North America (2010: 24%), 4% in Greater China (2010: 4%), 9% in Other Asian Markets (2010: 9%) and 6% in Latin America (2010: 6%). 56

16 Key Employee Statistics Index/reporting unit Total number of employees 39,596 42,541 46,824 Total employees (in %) Male 50% 52% 50% Female 50% 48% 50% Management positions held by (in %) Male 69% 72% 73% Female 31% 28% 27% Average age of employees (in years) Average length of service per employee (in years) Annual training hours by employee (in hours) at year-end Total number of employees Total number of employees 39,596 42,541 46,824 57

17 16. health & SAFETY STATISTICS FOR OUR MAIN ADMINISTRATION OFFICES, PRODUCTION SITES AND DISTRIBUTION CENTRES Administration Offices Injuries with >1 lost day Lost days due to injury Number of employees Injuries with >1 lost day Lost days due to injury Number of employees Injuries with >1 lost day Lost days due to injury Number of employees Region EMEA adidas Group Headquarters WOS Herzogenaurach, Germany * * * adidas Group Headquarters ADP Herzogenaurach, Germany * * * adidas Group Headquarters WOGIT Herzogenaurach, Germany * * * adidas Factory Outlet, Herzogenaurach, Germany adidas Office, Amsterdam, Netherlands n.a. n.a. n.a. n.a. n.a. n.a adidas Office, Stockport, United Kingdom n.a. n.a. n.a adidas Office, Landersheim, France n.a. n.a. n.a adidas Office, Monza, Italy n.a. n.a. n.a adidas Office, Zaragoza, Spain n.a. n.a. n.a adidas Office, Moscow, Russia n.a. n.a. n.a Region Americas adidas Office, Portland, USA Reebok Headquarters, Canton, USA TaylorMade-adidas Golf Headquarters, Carlsbad, USA adidas Group Administrative Service Building 3, Spartanburg, USA adidas Office, Woodbridge, Canada n.a. n.a. n.a adidas Office Baueri, Brasil n.a. n.a. n.a Region APAC adidas Office, Shanghai, China adidas Office, Taikoo Shing, Hong Kong n.a. n.a. n.a adidas Hong Kong Ltd. Office, Shatin, Hong Kong n.a. n.a. n.a. n.a. n.a. n.a adidas Office, Gurgaon, India n.a. n.a. n.a. n.a. n.a. n.a adidas Office, Seoul, South Korea n.a. n.a. n.a adidas Office, Taipei, Taiwan n.a. n.a. n.a adidas Office, Singapore, Singapore n.a. n.a. n.a Total Administration Offices * number of workplaces n.a. = not applicable as not included in reporting 58

18 16. health & SAFETY STATISTICS FOR OUR MAIN ADMINISTRATION OFFICES, PRODUCTION SITES AND DISTRIBUTION CENTRES Own Production Sites Injuries with >1 lost day Lost days due to injury Number of employees Injuries with >1 lost day Lost days due to injury Number of employees Injuries with >1 lost day Lost days due to injury Number of employees Region EMEA adidas Footwear Factory, Scheinfeld 1, Germany adidas Footwear Factory Scheinfeld 2, Germany Reebok-CCM Hockey Factory, Tammela, Finland Region Americas Sports Licensed Division Factory, Indianapolis, USA Sports Licensed Division Factory, Mattapoisett, USA Sports Licensed Division Factory, Cedar Rapids, USA Reebok-CCM Hockey Factory, St.Jean, Canada Reebok-CCM Hockey Factory, St.Hyacinthe, Canada adidas Canada Assembly Factory, Brantford, Canada Region APAC adidas Apparel Factory, Suzhou, China Total Own Production Sites * number of workplaces n.a. = not applicable as not included in reporting 59

19 16. health & SAFETY STATISTICS FOR OUR MAIN ADMINISTRATION OFFICES, PRODUCTION SITES AND DISTRIBUTION CENTRES Distribution Centres Injuries with >1 lost day Lost days due to injury Number of employees Injuries with >1 lost day Lost days due to injury Number of employees Injuries with >1 lost day Lost days due to injury Number of employees Region EMEA adidas Distribution Centre, Uffenheim, Germany adidas Distribution Centre, Caspe, Spain n.a. n.a. n.a adidas Distribution Centre, Dettwiller, France n.a. n.a. n.a adidas Distribution Centre, Manchester, United Kingdom n.a. n.a. n.a adidas Distribution Centre, Klimovsk, Russia n.a. n.a. n.a adidas Distribution Centre, Obukhiv, Ukraine n.a. n.a. n.a adidas Distribution Centre, Canot, Israel n.a. n.a. n.a Reebok-CCM Hockey Factory, Malung, Sweden Region Americas adidas Distribution Centre 1 (Apparel), Spartanburg, USA adidas Distribution Centre 2 (Footwear), Spartanburg, USA Reebok-CCM Hockey Headquarters and Distribution Centre, Montreal, Canada adidas Distribution Centre, Adams Boulevard, Brantford, Canada n.a. n.a. n.a adidas Distribution Centre, Embu, Brasil n.a. n.a. n.a adidas Distribution Centre, Pudahuel, Chile n.a. n.a. n.a adidas Distribution Centre, Cuautitlan Izcalli, Mexico n.a. n.a. n.a Region APAC adidas Distribution Centre, Suzhou, China adidas Hong Kong Ltd., Distribution Centre, Kwun Tong, Hong Kong n.a. n.a. n.a Total Distribution Centres Total * number of workplaces n.a. = not applicable as not included in reporting 60

20 Community Affairs 17. Community Affairs statistics In 2011, we saw a further increase of donation requests compared to the previous year and Donation requests significantly varied in nature and purpose. All requests were carefully reviewed on the basis of the adidas Group Corporate Giving Guidelines. In particular, we supported those requests which were in line with our policies and guidelines. Compared to 2010, the number of supported projects increased by 28%. The amount of product donations increased by 66%, in particular to support requests from aid organisations for product shipments that were used for relief efforts. Community Affairs statistics* Donation requests received Total number of projects supported Region EMEA 1,564 1,792 1, Latin America North America 5,784 6,429 7, Asia Pacific Total 7,606 8,421 9, ,238 Units of products donated Volunteer hours Region EMEA 17,246 53,545 67,240 4,213 5,234 3,911 Latin America 29,000 2,800 3,639 1, North America 143, , ,007 1,838 3,514 2,718 Asia Pacific 38,112 79,664 15,448 3,737 7,020 5,489 Total 227, , ,334 10,808 16,468 13,038 * Numbers include: brand activities, corporate activities, Reebok Foundation, Adi Dassler Fund. 61

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