Reebok 2006 Annual Report Download - page 38

034 ANNUAL REPORT 2006 › adidas Group ›
Our Share
2006 was a difficult year for the adidas AG share, in which
it was unable to continue the excellent performance it
delivered in 2005 and previous years. Concerns surround-
ing Reebok’s short-term business outlook and the state of
the North American sporting goods industry burdened our
share especially in the second half of the year and could
not be offset by the continued strong operational perfor-
mance of the adidas and TaylorMade brands.
adidas AG Share Unable to Match Strong 2005 Performance
After having significantly outperformed the DAX-30 and the
MSCI World Textiles, Apparel & Luxury Goods Index in 2005,
the adidas AG share could not sustain this positive momen-
tum in 2006 and decreased 6% over the course of the year. Our
share thus underperformed the DAX-30 and the MSCI World
Textiles, Apparel & Luxury Goods Index which increased 22%
and 24%, respectively. The increase of the DAX-30 was driven
by strong company earnings, buoyant mergers and acqui-
sitions activity as well as the improving macroeconomic
environment. The MSCI Index gained on the back of strong
company earnings throughout the sector. The positive devel-
opment was only interrupted in May and June, when a strong
rise in commodity prices and fears of a sharp economic down-
turn in North America resulted in significant losses of the
DAX-30 as well as other global indices. However, worries
about inflation and inherent interest rate hikes abated quickly.
The stock markets in the rest of Europe, the USA and Japan
also increased over the year, albeit to a lesser extent.
adidas AG Share Member of Important Indices
The adidas AG share is included in a variety of high-quality
indices around the world, most importantly the DAX-30, Ger-
many’s premiere stock index, and the MSCI World Textiles,
Apparel & Luxury Goods Index, which comprises the Group’s
major competitors. At December 31, 2006, our weighting in
the DAX-30, which is calculated on the basis of free float mar-
ket capitalization and 12-month stock market turnover, was
1.12% (2005: 1.39%). Our reduced weighting compared to the
prior year is a consequence of a decrease in market capital-
ization that could not be offset by a strong increase in share
turnover. Adjusted to reflect our share split, average daily
trading volume of the adidas AG share excluding bank trades
rose from almost 1.7 million in 2005 to more than 2.0 mil-
lion in 2006, highlighting the increased interest in our Group.
Within the DAX-30, we ranked 24 on market capitalization
(2005: 18) and 21 on turnover (2005: 21) at year-end 2006.
The adidas AG Share
Number of shares outstanding
2006 average 203,386,1041)
At year-end 2006 203,536,8602)
Type of share No-par-value share
Free float 100%
Initial Public Offering November 17, 1995
Stock exchange All German stock exchanges
Stock registration number (ISIN) DE0005003404
Stock symbol ADS, ADSG
Important indices DAX-30
MSCI World Textiles,
Apparel & Luxury Goods
Deutsche Börse
Prime Consumer
Dow Jones STOXX
Dow Jones EURO STOXX
Dow Jones Sustainability
FTSE4Good Europe
Ethibel Excellence
1) Figures adjusted for 1: 4 share split conducted on June 6, 2006.
2) All shares carry full dividend rights.
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adidas AG Market Capitalization at Year-End € in millions
2002
2003
2004
2005
2006
3,738
4,104
5,446
8,122
7,679