HR Strategy of Adidas Group Parfentyev Mikhail, Reshetnikova Darya 17.05.2012

Structure of presentation Slides Corporate profile………………………………2-7 Mission statement and group strategy……8-9 HR-planning……………………………………..10 Three-pillar HR strategy………………......11-20 Aspects of employee culture………………...21 Key Employee Statistics 2011……………….22 Adidas Group’s HR focus………….……..23-24 Conclusion…………………………………..25-26

Corporate profile Adidas group is one of the global leaders in the sporting goods industry, offering a broad range of footwear, apparel and hardware for sport and lifestyle All brands are renowned for their innovation and heritage and include household names such as: adidas, Reebok, TaylorMade, Rockport, CCM, Ashworth, Five Ten Headquartered in Herzogenaurach, Germany, Group employs more than 46,000 people across the globe and generated sales of € 13.3 billion in 2011

Adidas Group Enjoys Strongest Organic Growth In 5 Years

Sales Grow Across All Geographies and In All Product Categories, 2011

Financial Highlights

Mission Statement Guiding Principles: The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle Guiding Principles: 1) strengthening brands and products improve the quality, look, feel and image 2) socially and environmentally responsible financially rewarding for employees and shareholders match and exceed consumer expectations and to provide them with the highest value 3) consistently delivering outstanding financial results

Strategic choices under six key strategic pillars Group Strategy create a culture of innovation, challenging ourselves to break with convention and embrace change push the boundaries of products, services and processes to strengthen competitiveness and maximise the Group’s operational and financial performance Strategic choices under six key strategic pillars . Inspired by our heritage, we know that a profound understanding of the consumer and customer is essential to achieving this goal. To anticipate and respond to their needs, we continuously strive to create a culture of innovation, challenging ourselves to break with convention and embrace change. By harnessing this culture, we push the boundaries of products, services and processes to strengthen our competitiveness and maximise the Group’s operational and financial performance. This, in turn, will drive long-term value creation for our shareholders. To achieve this goal, we have made strategic choices and will prioritise our investments under our six key strategic pillars Becoming the global leader in the sporting goods industry depends upon the potential, dedication, knowledge and performance of our employees and the excellence of our leaders. Therefore, we foster a corporate culture of performance, passion, integrity and diversity, as we are convinced this is crucial to stimulate innovation, team spirit and engagement

HR planning In 2010 - SHINE, a Human Resources people strategy to leverage existing best practices create a single global standard for the field organization This ensures a set of broad and deep vertical retail and commercial skills to develop staff globally In 2011, the implementation and execution of SHINE throughout our markets has progressed and we are more than halfway through completing the global roll-out

Three-pillar Human Resources strategy The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle 1 Creating a working environment that stimulates team spirit, passion, engagement and achievement 2 Expanding performance culture based upon strong leadership 3 Being an “employer of choice”

1. Creating a working environment engagement drives performance Employee satisfaction Commitment Engagement (Group’s KPI) They have clear understanding about their own drivers and mechanics between Business performance

1. Creating a working environment internal communication activities to Drive employee engagement

2. Performance culture based upon strong leadership Enabling employees to reach their personal best: Group Competency Model Performance management: PEP

Success Drivers for Performance

2. Performance culture based upon strong leadership Talent management

Workforce values Believable Inspiring Creative Conscientious Sincere Experienced

2. Performance culture based upon strong leadership Succession management Performance-driven remuneration system Global Salary Management System Global Bonus Program Additional compensation components Long-Term Incentive Programs

2. Performance culture based upon strong leadership Attractive work environment Work-Life Integration Diverse workforce Increasing proportion of women in management positions Diverse sports activities for employees Company sports department

3. Being an “employer of choice” adidas Group is one of the leading employers for school leavers and students/graduates (2011) Employee Referral Program (2010-2012) increasing competition in the international labour market business plan Route 2015 specific initiatives and workstreams innovative ways to incentivize and reward employees T&D, building the skills and competencies “war for talent” - backbone of HR program

Key Employee Statistics 2011

Aspects of Employee Culture There is no end for sports Diversified employees Fair competition with team spirit Aspects of Employee Culture 1)All company staff participate in the activity of "Adidas sports night" energetically on Thursdays to enjoy delight in sports. 2)Adidas employees come from different trades as well as different countries and regions. Being an international business, Adidas' nationality should be ignored. 3)Adidas employee consider performance as its own ability and contribution in order to get promoted. The main task of business strategy is to make staff could touch and feel that business culture is embodied in their working atmosphere.

Adidas Group’s HR focus Three-pillar HR strategy 1 Creating a working environment that stimulates team spirit, passion, engagement and achievement 2 Expanding performance culture based upon strong leadership 3 Being an “employer of choice”

Adidas Group’s HR focus Financial Non-financial 1 Creating a working environment Performance and commitment Opportu-nities Abilities Motivation recruitment and selection T&D performance management Working conditions Supportive environment Professional and personal growth We consider this pillar through the lens of AMO equation Maintain sustainable psychological climate Adidas group should move their HR attention toward nonfinancial ways of motivation The AMO’s components synergy should improve performance and commitment

Role of HR department in carrying out enterprise culture Conclusion Role of HR department in carrying out enterprise culture HR department is like a driver The essence of Adidas business culture and values is fully reflected in HR strategy The mission of the company is directly connected with three-pillar HR strategy Example: “Spirit of fair competition” in Group strategy Performance payment system & equal opportunities for promotion every employee in HR strategy

Conclusion Successful organizational performance depends on a close fit or alignment between business and human resource strategy (Allen and While, 2007) On the maturity stage it is worth to focus the development of HR strategy on creating working environment, employees’ performance and commitment HR strategy is closely related with mission of Adidas group

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