Global Edition

Results from TaylorMade-adidas Golf

10.00am 8th March 2002 - Corporate

TaylorMade-adidas Golf has announced record fourth quarter revenue of EUR 107 million, a 30% increase from fourth quarter 2000. Full year 2001 revenue increased 24% to EUR 545 million from EUR 441 million in 2000. In constant currency, full year 2001 revenues increased 26% from 2000 levels. Operating profit also increased significantly, rising 43% for the full year 2001.

Revenue growth in both the fourth quarter and full year was heavily influenced by strong demand for the company’s metal wood product category as well as significant gains in international markets. The increase in metal woods during the year was fuelled by the continued strong market acceptance of the 300 Series of products, which was complimented by the launch of TaylorMade’s new 200 Steel line during the second half of the year. By product category, metal wood revenues increased during the fourth quarter and full year by 23% and 50%, respectively, as compared to the previous year.

Geographically, Asian and European operations continued to generate strong revenue growth. For the full year, revenues more than doubled in Asia and increased 26% in Europe. Revenues from international operations represented 52% of the company’s consolidated revenues in 2001 compared to 39% in 2000.

In a pessimistic European golf market, weakened by the foot and mouth epidemic and travel fears in the wake of US terrorist attacks, TaylorMade adidas Golf Europe has surprised the golf industry with an impressive set of sales figures for 2001.

The year saw significant growth across the board in the company’s net sales figures, with total increases of over £10 million reported between 2000 and 2001. Predictably, the most notable momentum occurred in the company’s sales of metal woods. A 56% increase in that category, meant that over £21 million worth of metal woods were sold in 2001, compared to £13.5 million during the year 2000. This gain was compounded by growth in other equipment areas, including sales of irons and putters. These categories saw a 16% and 24% respective increase in net sales for 2001.

The company’s footwear and apparel division, adidas Golf, continued its growth in the European market with a combined 29% increase in the total number of apparel/shoe quantities sold last year. Over 450,000 pairs of adidas shoes were sold in 2001, compared to 350,000 the previous year.

“I’m very pleased with the continued success we achieved during the fourth quarter, particularly in light of the challenging business environment”, said TaylorMade-adidas Golf president Mark King. “In addition to meeting our financial goals, we continued to make significant progress towards our key strategic objectives. During 2001, we continued to globalise our company, taking advantage of the established adidas-Salomon operational infrastructure, we greatly expanded our patent portfolio and we significantly increased our presence on the worldwide professional tours, ultimately becoming the number one metal wood on tour. Our dominating position on tour has been further highlighted early in 2002, as TaylorMade became the first brand in history to achieve outright the number one driver, iron and fairway wood counts at a U.S. PGA tour event. We first achieved this historical milestone at the AT&T Pebble Beach National Pro-Am and have since repeated it at the Buick Invitational and the Genuity Championships.”

“We remain optimistic and believe the momentum we’ve generated will again enable us to deliver double digit sales growth on our existing business in 2002,” said TaylorMade-adidas Golf company chief executive officer Jim Stutts. “In addition, our new license and distribution agreement with Dunlop Slazenger Group regarding the Maxfli and Slazenger brands will allow us to further expand our growth opportunities and provides us a vehicle to become a significant player in the important golf ball category. Current market data shows our golf ball unit market share has already increased to 10%. The combination of our tour dominance, the strength of our existing products and those scheduled for introduction throughout 2002 have us well positioned to further our reputation as the best performance company in golf.”

TaylorMade-adidas Golf www.taylormadegolf.com or www.adidasgolf.com.

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