Reebok 2006 Annual Report Download - page 40

036 ANNUAL REPORT 2006 › adidas Group ›
Strong Increase in Number of ADRs Outstanding
Our Level 1 American Depositary Receipt (ADR) facility
launched on December 30, 2004, continues to enjoy great
popularity among American investors. During the course of
2006, the number of Level 1 ADRs outstanding has grown
significantly from approximately 1.6 million to 11.3 million at
year-end 2006. This strong increase reflects the increased
interest of US-based investors in our share. Adjusted for the
share split which was also applied to our ADRs, the Level 1
ADR closed the year at US $ 25.20, representing an increase
of 6.6% versus the prior year (2005: US $ 23.64). Due to the
appreciating euro, the ADR outperformed our common
stock.
Convertible Bond Trades at a Premium
In 2006, the adidas Group further diversified sources of financ-
ing. As part of the financing of the Reebok acquisition, the
Group issued several additional private placements in 2006
(see Treasury, p. 85). The publicly traded convertible bond
closed the year at € 154.90, which is 4.1% lower compared to
the end of the prior year (2005: € 161.60). It currently trades at
a premium of around 5.2% above par value of the share.
Higher Dividend Proposed
The adidas AG Executive and Supervisory Boards will rec-
ommend paying a dividend of € 0.42 to our shareholders at
the Annual General Meeting on May 10, 2007. Subject to the
meeting’s approval, the dividend will be paid on May 11, 2007.
The proposed dividend per share represents an increase of
€ 0.095 per share (2005: € 0.325), showing our confidence in
the Group’s future business performance. The total payout of
€ 85 million (2005: € 66 million) reflects a payout ratio of 18%
(2005: 17%). The dividend proposal follows our dividend pol-
icy, under which the adidas Group intends to pay out between
15 and 25% of consolidated net income.
Five-Year Share Price Development1)
200
150
100
50
0
Dec. 31, 2001 Dec. 31, 2006
adidas AG
DAX-30
MSCI World Textiles, Apparel & Luxury Goods
1) Index: December 31, 2001 = 100
ADR Overview
American Depositary
Receipts (ADRs) Level I Rule 144A
CUSIP 00687A107 00687P104
Symbol ADDYY ADDDY
ADR/share ratio 2:1 2:1
Exchange Over the counter (OTC) Portal
Effective date December 2004 November 1995
Depositary bank The Bank of New York The Bank of New York
Share Ratios at a Glance
2006 2005
Basic earnings per share € 2.37 2.051)
Diluted earnings per share € 2.25 1.931)
Operating cash flow per share € 3.74 1.881)
Year-end price € 37.73 40.001)
Year-high € 44.001) 41.001)
Year-low € 34.66 27.781)
Dividend per share € 0.422) 0.3251)
Dividend payout € in millions 85 66
Dividend payout ratio % 18 17
Dividend yield % 1.11 0.81
Shareholders’ equity per share € 13.90 13.221)
Price-earnings ratio at year-end 16.8 20.7
Average trading volume
per trading day shares 2,039,5271) 1,696,3711)
DAX-30 ranking3) at year-end
by market capitalization 24 18
by turnover 21 21
1) Adjusted for 1: 4 share split conducted on June 6, 2006.
2) Subject to Annual General Meeting approval.
3) As reported by Deutsche Börse AG.