Annual Report

Introduction

Adidas is a name brand that most people know about.

Have you ever wondered though, what goes on behind the scenes? Well, that is what is going to be discussed in this paper. Some of the main ideas we are going to look are who the auditors are, the trends in assets and liabilities, the largest assets and liabilities, the types of stocks that are available, the type of income statement that is used, the trend of net income, the type of cash flow statement that is used, and the two largest items included in cash from investing. The purpose of this document is to get you better informed on the current standing of the Adidas Corporation.

Annual Report Analysis of Adidas Let’s first discuss who the auditors are and what opinion they have on the company’s financial statements. Auditors The KPMG AG group is who audits Adidas. They audited Adidas on Feb. 15, 2011. Kozikowski & Wolper (2010) stated, “In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRS, as adopted by the EU, the additional requirements of German commercial law pursuant to § 315a HGB and give a true and fair view of the net assets, financial position and profit or loss of the Group in accordance with these requirements.

The Group management report is consistent with the consolidated financial statements and as a whole provides a suitable view of the Group’s position and suitably presents the opportunities and risks of future development. ” So, yes the auditors provide a clean opinion the financial statements. In the auditor’s opinion, the company complied with all the standards that were required. So, have there been any subsequent events that have had a material effect on the financial statements? Let’s take a look. Subsequent Events

Since the end of 2010, there have been no significant organization, management, economic, socio-political, legal or financial changes that have had a material effect on the financial statements. This shows that this is a stable group that can be relied on. Now, let’s see what kind of trends in assets and liabilities there have been in the past two years. Trends in Total Assets and Total Liabilities At the year of the fiscal year in 2008 Adidas group had € 9,533,000,000 in total assets. Now, at the end of the 2009 fiscal year, Adidas group had € 8,875,000,000 in total assets. This is a 6. % drop in total assets. At the end of 2008 fiscal year, Adidas group had € 6,133,000,000 in total liabilities; and at the end of the 2009 fiscal year, Adidas group had € 5,099,000,000 in total liabilities. That is a € 1,034,000,000 change in liabilities. The current ratio for the 2008 fiscal year was 1. The current ratio for the 2009 fiscal year was 1. What were the three largest assets and liabilities? Let’s see. Three Largest Assets and Liabilities for Recent Year The three largest assets for the 2009 fiscal year were the following:

• Cash and cash equivalents
• Accounts Receivable
• Inventories

1. The three largest liabilities for 2009 fiscal year were the following:
2. Long-term borrowings
3. Accounts payable

Accrued liabilities Now that we know what the three largest assets and liabilities Adidas group has, why don’t we look at their stock options. Stock Options Adidas group offers registered no-par value shares. There are currently 209,216,186 shares outstanding at the end of the 2010 fiscal year. Income Statement Adidas group uses a multi-step income statement. There were no separately reported items. Gross profit dropped by 10. 4% and operating profit dropped by 52. 6% between 2008 and 2009 fiscal years.

Net Income Adidas group had a major drop in net income between the 2008 and 2009 fiscal years. At the end of the 2008 fiscal year, net income was € 645,000,000. At the end of the 2009 fiscal year, net income was € 245,000,000. This was a 61. 9% drop. The main reason for such a drastic drop in net income was a decrease in sales and financial income. Comprehensive Income Adidas group had net loss of €132,000,000 in 2009 and a net gain of €149,000,000 in 2008 on cash flow hedges. Also, there was an actuarial loss of €12,000,000 in 2009 and a gain of €2,000,000 in 2008 of defined benefit plans and asset ceiling affect (IAS 19).

Direct or Indirect Cash Flow Statement Adidas group uses the direct method because on the cash flow statement they report disbursements from operating activities. Items Included in Cash from Investing Activities The two largest items in cash from investing activities are the following: * Proceeds from sale of property, plant and equipment * Proceeds from sale of other intangible assets The proceeds from the sale of property, plant and equipment brought in €16,000,000 in net cash in 2009 and €27,000,000 in 2008. The proceeds from the sale of other intangible assets brought in €10,000,000 in 2009 and €8,000,000 in 2008.

These numbers are net cash. Summary So, we have learned that the Adidas group that they offer registered no-par value stock. There were major differences between 2008 and 2009 when it came to net income. They made a lot more money in 2008 than they did in 2009. They use the direct method when it comes to cash flow statement. The corporation uses the multi-step income statement. Total assets and liabilities both declined from the 2008 fiscal year to the 2009 fiscal year.

Works Cited

1. Consolidated Balance Sheet. Adidas Group. http://adidas-group. corporate-publications. om/2009/gb/en/consolidated-financial-statements/consolidated-balance-sheet. html (2010).
2. Consolidated Cash Flow Statement. Adidas Group. http://adidas-group. corporate-publications. com/2009/gb/en/consolidated-financial-statements/consolidated-statement-of-cash-flows. html (2010).
3. Consolidated Income Statement. Adidas Group. http://adidas-group. corporate-publications. com/2009/gb/en/consolidated-financial-statements/consolidated-income-statement. html Kozikowski, M. , & Wolper, A. (2010).
4. Auditors Report. http://adidas-group. corporate-publications. com/2009/gb/en/consolidated-financial-statements/independent-auditors-report. html

A At he stop of each financial twelvemonth most of the companies make Documents supplying fiscal information such as blance sheets, income and cashflow statements and listing of company operations, calles one-year studies. The information included in the study is compared to the information of old old ages, looking besides at the consequences. This is a criticial portion of the dessision doing procedure of the company for future company tactics and schemes. There are two types of one-year studies depending on their contnents. The first is Annual study to the Securities and Exchange Comission, besides known as signifier 10-k. The 2nd is the stockholder one-year study or corporate one-year study. While the SEC one-year study provides really elaborate fiscal information, the sahreholder reoprt provides more generaized information indicating out the gross revenues and the selling information. To analyze the company ‘s market people should look at the corporate studies, but the user of the information must hold at least basic accounting knowedge, being familiar with company ‘s statements, cognizing where to happen utile information and how to analyze it. Annual studies are created by the direction of the company, so as the direction is responsible for the truth of the information presented in the study. The information is used chiefly by investors to analyze the company ‘s fiscal position and predict future way. To do happening information in the one-year studies easier, the one-year studies have similar construction, and include obligatory parts such as Management ‘s treatment and analysis of operating consequences.

Annual studies basicly exhibit fiscal and statistical informations, so as to treat public presentation, markets and production. Puting together gross revenues, net incomes and other fiscal constituents for two or more old ages. This so called fiscal high spots have the intent to find the best attack to doing the company ‘s future scheme. However the one-year studies are composed by the direction, which purpose is to show the company in the best manner, overstating some information and suppress other. So every bit good as the one-year study is, it should n’t be the lone beginning of garnering information for the investors to measure the productive and fiscal public presentation of the company. Another major factors for the truth of the information extracted from the one-year study is the ability to destinguish the of import facts and accomplishments of the extractor himself.

In order to acquire information from the one-year study foremost must happen 1. All public-treaded companies are required to do one-year studies aviable for the Securities and Exchange Comission ( SEC ) , so to happen there one-year study is a possibility. Although most of the companies send digital coppies of their one-year study via electronic mails to users, or difficult coppies via mailing, normally free of charge. And for imediate obtaining one can ever download digital coppy straight from the company ‘s web site. Naturally the mean one-year study includes: missive to stockholders, Operational Overview ( Management Discussion and Analysis ) , Auditor ‘s study, amalgamate fiscal statements-including balancesheets ; income statements ; cashflow statements, Notes to amalgamate statements and some corporate information-for illustration: Board of managers, officers and stockholder information.

In order to garner the needed information one must merely folow the stairss of analyzing the one-year study. First one must look into the last page of the study. It should be written on it: “ Report of Independent Registered Public Accounting Firm ” or “ Auditor ‘s Report. ” If the one-year study does non hold this subdivision, it is non valid, so the information in it may be non authentical, intending that it is useless. To go on with the study ‘s security review than look into the portion “ Report of Independent Registered Public Accounting Firm ” , it should be signed by an active reassuring house, the most celebrated are: Pricewaterhouse Coopers, KPMG, Ernst & A ; Young, Deloitte & A ; Touche. The house ‘s mark confirms that the study was created utilizing By and large Acepted Acounting Principles ( GAAP ) . Shoping through the study, the following portion coming is the “ Letter to the stockholders ” , incorporating summarised information about the company ‘s yesteryear, present and future. That could be utile for more basic determinations, based on more summarized information. Following are Notes To Consolidated Financial Statements, here is most of the neggative onformation about the company. Such as critical partnerships, cases and many other types of hazards that the company has taken. The following phase in analyzing the one-year study is reading the portion titled: “ Management ‘s Discussion And Analysis. ” Here all the information normally has the intent to show the company in a good manner, normally written by the PR experts, I ‘m non stating that this information is non valuable, but it may be distorted in some manner, so the reader must hold that one on head. The following portion of the study ca n’t be manupalated, it is called Amalgamate Statements Of Financials. Incorporating merely unsmooth Numberss, it ca n’t be influented. Looking at the Numberss, the reader makes his ain feeling based on his ain analysis. This portion of the study is divided by three chief parts. Firtst is balance sheet, showing a snapshot of the company ‘s state of affairs, but it may be changed many times from that past minute, so the information that contains may be non true any longer. The 2nd portion is the cashflow statement, demoing the monye flow in the company and it ‘s alteration during certain periods of clip. Very crutial portion of inspecting company ‘s statement, based on the fact that the monyeflow is one of the most of import factors organizing company ‘s position. The 3rd portion is based on the net income / loss dependance here is the most utile analyzis demoing if the house is passing more than it is gaining, howerver, the information may change due to some factors. The study besides includes an analysis of the Consolidated Statements of Financials, which is the undermentioned portion of the study. This analysis is basicly comparing balance sheets, or cashflows for different old ages ( one or more ) sing the tendencies. Tendencies are really utile sing any anticipations made about the company. The longer the period is the better the tendencies are distinged by the reader. The information compared for several old ages is evaluated in percantages, presuming 100 % as the index given in one of the old ages named basal twelvemonth, the other values in the other old ages could be higher or lower and in really rear instances being the same. This shows the existent alteration in the ammount for the different points. Than the sums of the similar points are expressed as a per centum of the basal twelvemonth ‘s ammount and that is how is formed the index or the tendency ratios. In order to susccesfully construe the information, the reader could seek specific information replying sepcific inquiries. For illustration an addition in the stock of the company, could be provoced by altering the whole stock list policy. Increasing in revenue enhancement could be a consequence of really increased gross revenues, but somewhat altering net incomes. Monitoring he fixed assets and the long term debt besides could take to many concealed information about how these assets are being financed. That was the horizontal manner of analyzing Amalgamate Statements of Financials. The perpendicular method is for comparing statements of companies tha differ in size. For illustration in the perpendicular anlysis gross revenues woud be expressed as 100 % and every point in the income statement is expressed as a portion of this percantage. Sing the information that manner, the reader can examin the grounds of increasing the value of the current assets and stock.

Sum uping the information given, I must state that analyzing company ‘s market, productive and fiscal public presentation is a long procedure, that requires more attending than it seems. To be the analysis every bit accurate as possible, the reader must detect the smallest item in the figures of the study and the histories. Because the slightest alteration in the tendencies of an facet of the company ‘s position, may be tantamount to a dramatic alteration in future. Reading the study and analyzing the histories is merely non plenty. It is required far more deep inspecting of the informations presented and separating the valuable information, straight related to the topic. Market and productive and fiscal public presentation are influenced by many factors and this is the ground why their analysis is so difficult to accomplish. And that every component of the studies and the histories has it ‘s immense part in this analysis. Following these stairss and passing the clip required will likely take to an success analyzing the tendencies, that could reply the exact inquiry which response the analyser seeks, and replying that inquiry to construct up an full new scheme and maneuver over the topic.

Executive Summary

John Keels Hotels (KOHL), a 92. 69% owned subsidiary of conglomerate John Keels Holdings OK) that reported a net profit of RSI. 14. MN in the third quarter of 2009 (compared too net loss of RSI. 91. MN in SQ). To serve our clients better, we embarked on an innovative re branding and re positioning strategy by launching two indigenous brands – ‘Cinnamon Hotels; Resorts’ and ‘Shay Hotels; Resorts’. Cinnamon Hotels & Resorts, an exclusive franchise, is the foremost of its class while

Shay Hotels and Resorts, an experience-based value proposition, is setting a new trend in the region offering travelers a diverse range of travel experiences based on adventure, history, culture and nature. Trans Asia hotel was recently acquired by KOHL and has suspended operations from 1 5th May 2009 in order to carry out a refurbishment and repair. Upon completion, the hotel would be re-branded and launched as Cinnamon Lakeside, Colombo. Cinnamon Lakeside will revolve around the panoramic view of the Iberia Lake, a view which is unique to this property and one that offers endless possibilities.

We are investing RSI. 500 million in the refurbishment and re-branding of the hotel, which will ensure that the hotel provides the service and quality that guests expect from all Cinnamon Hotels This document is an outline strategic marketing plan targeting the re-branding of this new acquisition in order to ideally position it in this future growth market. Situation Analysis With the return of peace supported by strategic marketing plans, tourism in Sir Lankan, with its unique product offerings is well positioned to be one of the thrust sectors of the Sir Lankan economy in the foreseeable future.

Total tourist arrivals in 2008 were 438,475 persons, only Just ahead of the total arrivals figure of 407,230 persons in 1982, the year before the North-East conflict escalated. With the resolution of the North-East conflict, Sir Lankan finally has the opportunity to realize its undeniable potential in tourism, and with an improved marketing effort and investment in infrastructure, we believe that the country tourism industry can deliver on its promise in the longer term.

The Mission

“To strive for perfection when providing guest experiences that exceed expectations ND be recognized as an emerging regional leader in Hospitality, through the discovery of quality service propositions, supported by superior performance from our people and technology, whilst nurturing values on responsible tourism and providing a sustainable future for all stakeholders. ” Marketing Objectives Market Needs The Cinnamon Lake View offers value and benefits to our clients, over and above the standard with our facilities and affordable rates.

We seek to provide our guests with an exemplary personal service, and level of recognition that they have come to rely upon when staying at a Cinnamon branded hotel. We provide our guests with a environment which they cannot find at our more impersonal competitors. Our guests need to know that they can develop a relationship with the hotel that will ensure efficiency, value for their money and reliability in supplying them with the support they need, when they need it.

The Market

Our key clients are contracted corporate clients originating from both international and domestic markets as well as tourists visiting Sir Lankan for its unique scenic beauty and sandy beaches. The strategic location of the property overlooking the Iberia Lake in the heart of Colombo city is key to its success in these areas due to the proximity of the Exhibition Halls, Shopping Centers and other locations such as Art Galleries and Museums. Key to our business success is the level of customer loyalty and repeat business we receive on an annual basis.

We offer our guests the most up- to-date technical business facilities, both inside the rooms and within the hotel’s conference facilities.

Service Offering

Service: high-quality facilities accompanied by exemplary personal service, fractionated from competition in line with the overall brand strategy has proven to be a successful approach generating high levels of repeat business. Positioning The Cinnamon Lake View is positioned as a five star, business traveler’s hotel, strategically located and offering a high level of personal service.

Our focus is on offering our guests added value and differentiating ourselves in our levels of personal service. We provide a quality hotel experience where guests are valued, respected and their business is truly appreciated.

Marketing Strategies

The Marketing Mix Service

High-quality facilities accompanied by exemplary personal service, differentiated from competition, in line with the overall brand strategy has proven to be a successful approach generating high levels of repeat business.

Price

Pricing strategy has been consistent with the differentiation objective, to provide added value for a reasonable rate as opposed to discounting and devaluing our products and services. Place Service information is provided to the guest via personal selling, direct marketing, advertising and Internet based Inbound Marketing. Delivery channels include travel gents, international reservations systems and our own Web Site.

Promotion

Primary focus has been on mass communication via print ads in trade publications and on the Internet, direct mail campaigns to existing and prospective clients and personal selling in the local market. Personal selling provides the means to develop relationships within the local community and generate high levels of corporate activity through the business community. Public relations plays an important role in and participating in significant local events to assist in developing ongoing operation, assures repeat business and good working relationships.

Competition

All other five star hotels, especially those located in the greater Colombo area, and Serviced Apartments do compete for the same corporate business sectors.

Direct Competition

• Hilton, Colombo: 5-star city hotel, room rates approximately 10% higher than Cinnamon Lake View, older facilities.
• Hotel Gaillardia, Colombo: 5 star city hotel, room rates approximately 10% higher than Cinnamon Lake View, facility refurbished around four years ago.
• Gale Face Hotel, Colombo: 4 star city hotel, room rates heaper than Cinnamon Lake View, older facilities.
• Creates Residencies, Colombo: Luxury furnished apartments, daily rates 15% higher than Cinnamon Lake View double deluxe rates.

They are usually rented on a monthly basis by third party owners. These properties offer similar facilities, although somewhat less focused on business needs, and incorporate more leisure facilities than we currently provide. Indirect Competition Cinnamon Lake View’s indirect competition is “distance” meetings in the corporate world.

The more companies decide to conduct meeting over the phone, using web nonfreezing technology, and video phone technology, the less business people travel and the more it affects Cinnamon Lake View Hotel. Cinnamon Lake View has to keep abreast of all new distance meeting technology, and continue to reinforce with clients that there is no better way to do business then face to face. Strategy Pyramid Marketing Strategy in a Nutshell Our marketing strategy’s objective is to communicate the unique set of services that we offer to discerning hotel guests.

We attempt to direct the focus of our guests to the issues of quality and value for the money as opposed to simply the bottom line sots associated with their stay. Our marketing strategy will allow us to communicate our brand values, develop close working relationships with our customers and suppliers and to identify the needs of our guests in an effective manner. Continued differentiation and growth are two goals we have set for ourselves. Growth will take place by targeting new areas of business within both local and national communities.

Our value proposition is that Cinnamon Lake View offers the best, most personalized service for the corporate traveler. We include business essentials in every room, such as a nice desk, internet connection, wireless access, and provide easy to access meeting rooms with all audio-visual and technology needs as well as catering for longer meetings.

Cost/Expenses Guidelines

Note: The values and personnel names are assumed and not actual. Implementation Guidelines Our marketing expense is structured to reflect the corporate strategy differentiation.

Quarterly travel trade publications and interim monthly press ads communicate our Monthly Internet advertising expenses include banner ads, and strategic links with ar hire, airline and destination management companies’ websites to drive business to the hotel. Direct mail activity builds our targeted customer database, not only in terms of improving the quality of the data we currently hold, but on increasing the size of the database with prospective customer information.

Inbound marketing activities utilizing the Web Site (SEE) and Social Media Sites (Twitter, Backbone) ensures that our clients can easily find us when searching for quality business accommodation. Social Media Sites also allow us to give a personalized service to our customers via one-to-one interaction. Public relations expenses cover PR events, participation at local functions and sponsorship funds. Overall, the percentage of total revenue required to support the marketing expense is considered a moderate amount.

Evaluation and Control Mechanisms

All figures will be monitored on an ongoing basis in relation to projections versus actual, and the ongoing plan will be altered or manipulated as necessary in order to react to and, wherever possible, anticipate external changes to the environment. Annual results will be evaluated at the General Manager’s meeting where the Truckee of the plan for the approaching year will also be established.

Our marketing plan is structured to enable us to achieve the strategic goals we have set for ourselves, in terms of increasing overall revenue as a result of differentiating our products and services from the competition. Our marketing team will ensure that the plan is implemented to the best of their ability and with the highest levels of efficiency and accuracy.

References

1. Colombo Stock Exchange Data Library * Sir Lankan Tourist Bureau * Annual Report, John Keels Hotels