Management aggregates all risks reported by different business units and functions. ...
Management aggregates all risks reported by different business units and functions. Based on the compilation of risks – taking into account the occurrence likelihood and potential financial impact and the current business outlook explained within the 2010 Annual report – adidas Group Management does not foresee any individual or aggregate risks which could materially jeopardise the viability of the Group as a going concern. This assessment is also supported by the historical response to our financing demands. The adidas Group therefore has not sought an official rating by any of the leading rating agencies.
Management remains confident that the Group’s earnings power forms a solid basis for our future business development and provides the necessary resource to pursue the opportunities available to the Group.
Compared to the prior year’s assessment, the following risks have increased: hazard risks, risks from rising input costs, customer risks, personnel risks, social and environmental risks, currency risks as well as interest rate risks. The assessment of the following risks has decreased: macroeconomic risks, inventory risks, product design and development risks, risks from non-compliance as well as financing and liquidity risks. Nonetheless, the changes in individual risks have no substantial impact on the overall adidas Group risk profile, which we believe remains unchanged compared to the prior year.