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022 ANNUAL REPORT 2006 › adidas Group ›

Declaration of Compliance Underpins Good Corporate Governance

We report on corporate governance at adidas AG together with the Executive Board in the Corporate Governance report in

the annual report. On February 16, 2007, the Executive Board and the Supervisory Board presented an updated Declaration

of Compliance in accordance with § 161 AktG (German Stock Corporation Act), which was made permanently available to the

shareholders of adidas AG on the corporate website on the same day.

Detailed Examination and Discussion of the 2006 Financial Statements and Consolidated Financial Statements

KPMG audited the 2006 ﬁnancial statements and management report of adidas AG prepared in accordance with the require-

ments of the German Commercial Code (HGB) and issued an unqualiﬁed opinion thereon. The auditor also approved without

qualiﬁcation the consolidated ﬁnancial statements prepared in accordance with § 315a HGB in compliance with IFRS and sup-

plemented by a Group Management Report.

The ﬁnancial statements, the proposal put forward by the Executive Board regarding the appropriation of retained earnings and

the auditor’s reports were submitted to the Audit Committee and the Supervisory Board in a timely manner. They were examined

in detail ﬁrst by the Audit Committee and subsequently at our annual ﬁnancial statements meeting on March 6, 2007 and were

discussed in the presence of the auditor who reported on the material results of the audit and was available for questions and

the provision of supplementary information. Having examined the ﬁnancial statements of adidas AG, the consolidated ﬁnancial

statements and the management reports, we came to the conclusion that there were no objections to be raised. We therefore

approved the results of the audit, following the recommendation of the Audit Committee, and adopted the ﬁnancial statements

prepared by the Executive Board at our ﬁnancial statements meeting. The ﬁnancial statements of adidas AG were thus estab-

lished. Further, we examined and approved the Executive Board’s proposal regarding the appropriation of retained earnings.

Explanations pursuant to § 289 section 4 and § 315 section 4 HGB

At our meeting on March 6, 2007, we also dealt with the compulsory disclosures pursuant to § 289 section 4 and § 315 section 4

of the German Commercial Code (HGB) as well as the reporting in this regard. We refer to the related explanations in the adidas

AG management report and in the Group Management Report (see Reporting Pursuant to § 315 Section 2 No. 4 and Section 4

HGB, p. 114). We have examined these disclosures and explanations, which in our opinion are complete, and have internalized

them accordingly.

adidas Group Well Positioned for the Future

2006 was an exciting year for the adidas Group in which important, forward-looking strategic decisions were made. All ﬁnancial

targets were achieved. Despite the short-term challenges relating to the Reebok brand, we are conﬁdent that the Group is well

positioned for continuing success.

We appreciate the tremendous personal dedication, the performance and the ongoing commitment of the Executive Board, the

Management Boards of the Group companies, the Works Council and all adidas Group employees. We thank all of them for

their contributions.

For the Supervisory Board

Henri Filho

Chairman of the Supervisory Board

March 2007