The recoverable amount of a cash-generating unit is determined on the basis of value in use. This calculation
uses cash flow projections based on the financial planning covering a six-year period in total. The planning
is based on long-term expectations of the adidas Group and reflects in total for the cash-generating units an
average annual mid- to high-single-digit sales increase with varying forecasted growth prospects for the different
units. For the majority of the cash-generating units of the Retail segment an increase above the Group average
is expected. Furthermore, we expect the operating margin to expand, primarily driven by an improvement in the
gross margin as well as lower operating expenses as a percentage of sales. The planning for capital expenditure
and working capital is primarily based on past experience. The planning for future tax payments is based on
current statutory corporate tax rates of the single cash-generating units. Cash flows beyond this six-year period
are extrapolated using steady growth rates of 1.7% (2013: 1.7%). According to our expectations, these growth rates
do not exceed the long-term average growth rate of the business in which each cash-generating unit operates.