Reebok 2006 Annual Report Download - page 41
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037
Our Share ›
2006 AGM Renews Authorization for Share Buyback
In addition to ratifying the actions of the Executive and Super-
visory Boards in 2005 and resolving upon the dividend, the
name change and the share split (see above), the Annual Gen-
eral Meeting also approved a change in adidas AG’s Articles of
Association to reflect changes in German company law regu-
lating the convocation of and the requirements for attending a
general meeting. Following the capital increase in November
2005, which utilized all outstanding authorized capital, new
authorized capital amounting to € 20 million was approved.
In addition, the Annual General Meeting renewed the exist-
ing authorization to repurchase own shares up to an amount
totaling 10% of the stock capital until November 10, 2007 (see
Reporting Pursuant to § 315 Section 2 No. 4 and Section 4
HGB, p. 114). Currently, however, the Group has no concrete
plans to make use of this authorization.
Investor Base in North America Significantly Strengthened
Based on the amount of invitations to our Annual General
Meeting in May 2006, we estimate that we currently have
around 85,000 shareholders. According to our latest owner-
ship analysis conducted in February 2007, known institutional
investors now account for approximately 96% (2006: 93%) of
our shares outstanding. As a result of the Reebok acquisition
and our stronger position in the North American market, insti-
tutional shareholdings in this region increased significantly to
37% (2006: 29%). German institutional investors accounted
for 12% of adidas AG shares (2006: 13%). The sharehold-
ings in the rest of Europe excluding Germany decreased to
40% (2006: 44%). 2% are held by institutional shareholders in
other regions of the world (2006: 3%). The adidas Group man-
agement, which comprises current members of the Executive
and Supervisory Boards, continues to hold less than 5% in
total. Smaller, undisclosed holdings, which also include pri-
vate investors, declined to 4% (2006: 7%).
Strong Analyst Interest Continues
The adidas Group continued to receive strong interest from
analysts and investors in 2006. Around 30 analysts regularly
published research reports on adidas AG. The majority of
investors and analysts remain confident about the medium-
and long-term potential of our Group, although the recom-
mendation split as of December 31, 2006, reflects several
downgrades due to concerns about Reebok’s short-term
business outlook and the reduction of the Group’s 2007 net
income guidance on November 9. 38% of analysts recom-
mended investors to “buy” our share in their last publication
during the 12-month period (2005: 75%). 56% advised to hold
our share (2005: 25%). 6% issued a “sell” rating (2005: 0%).
Award-Winning Investor Relations Activities
adidas AG strives to maintain continuous close contact to insti-
tutional and private shareholders and analysts. In 2006, man-
agement and the Investor Relations team spent almost twenty
days on roadshows and presented at numerous national and
international conferences (see www.adidas-Group.com/inves-
tors for a detailed calendar of events). In April 2006, we invited
the financial community to our seventh annual Investor Day in
London, where Management presented the Group’s strategy
and future brand positioning. The effectiveness of our Group’s
Investor Relations activities was highlighted by the Institutional
Investor Magazine, whose surveys among buy-side and sell-
side analysts again ranked us as the best Investor Relations
program in our sector. In addition, we took second place in the
DAX-30 in the annual Investor Relations rankings conducted
by German business magazine Capital.
Extensive Financial Information Available Online
At www.adidas-Group.com/investors, we offer extensive in-
formation around our share as well as the Group’s strategy
and financial results. Our event calendar lists all conferences
we attend and provides all the presentations for download.
In addition to live webcasts of all major events such as our
Analyst Conference, the Annual General Meeting and our
Investor Day, we have started to offer podcasts of our quarterly
conference calls. In 2007, we will further improve our website
to best meet the information needs of our stakeholders.
1) At year-end 2006
Source: Bloomberg
Recommendation Split1)
Sell 6% Hold 56%
1) As at February 2007
Shareholder Structure1)
Rest of the World 2% Rest of Europe
(excl. Germany) 40%
Buy 38%
Other, Undisclosed
Holdings 4%
North America 37%
Management < 5%
Germany 12%