Reebok 2007 Annual Report Download - page 121

117
ANNUAL REPORT 2007 --- adidas Group
03
SUBSEQUENT EVENTS Since the end of 2007,
t
here have been subsequent events wh
i
c
h
will in
fl
uence the
f
uture develo
p
ment o
f
the
adidas
G
rou
p
. In addition to the announcement
o
f
a share buyback program, other subsequent
events include the expansion of the Amsterdam
-
based ad
i
das Internat
i
onal Trad
i
n
g
B.V.,
adidas
C
anada’s
p
urchase of
S
axon Athletic
as well as Ta
y
lorMade-adidas Golf’s divestiture
of the Maxfl i brand. However, there has been
no subsequent event since the end of 2007
which we ex
p
ect to in
fl
uence our business
materially going
f
orward or that has changed
M
anagement expectations for 2008.
SUBSEQUENT CHANGES IN THE GROUP’S STRUCTURE
On February 5, 2008, we announced the expansion of the
Amsterdam-based adidas International Trading B.V. to create
a global, multi-brand trading platform for the adidas Group.
Primary responsibility will be to purchase product from our
suppliers and sell it to the adidas and Reebok sales organiza-
tions and distributors around the globe. As a result, we expect
to improve service levels to our sales organizations and
increase the speed with which our supply chain responds to
change. Around 60 positions, in particular in the Global Opera-
tions and Logistics sectors, will be transferred from various
locations to Amsterdam. Ultimately, we expect this company to
employ more than 150 employees.
SUBSEQUENT EVENTS AT ADIDAS Effective January 3, 2008,
adidas Canada acquired Saxon Athletic Manufacturing Inc.
(based in Brantford / Ontario, Canada) to strengthen adidas’
position in the teamwear business in North America. Canadian-
based Saxon Athletic is a design, development, marketing
and manufacturing company for team uniforms worn by pro-
fessional and amateur teams throughout North America.
Both Saxon Athletic sales and the transaction value in euros
represent an amount in the low-single-digit millions.
SUBSEQUENT EVENTS AT TAYLORMADE-ADIDAS GOLF
Effective February 11, 2008, TaylorMade-adidas Golf divested
the Maxfl i brand, which will allow the segment to increase
and improve the focus of its golf ball business under the
TaylorMade brand. As the divested business accounted for
approximately 1 % of TaylorMade-adidas Golf sales in 2007,
this will have a minor negative impact on the segment’s sales
development in 2008. The transaction value in euros repre-
sents an amount in the low-double-digit millions.
SUBSEQUENT SHARE COUNT CHANGES As a result of stock
options exercised as part of various tranches of the Manage-
ment Share Option Plan (MSOP) for executives of of adidas AG,
the number of outstanding shares increased by 16,000 to
203,644,960 no-par value shares on January 15, 2008.
On January 29, 2008, adidas AG announced the launch of a
share buyback program. Treasury shares of up to 5% of the
Company’s stock capital (up to 10,182,248 shares) with an
aggregate value of up to € 420 million (excluding incidental
purchasing costs) shall be repurchased, exclusively via the
stock exchange. adidas AG intends to cancel the repurchased
shares, thus reducing its stock capital. As a result, the Group’s
equity ratio will decrease and earnings per share will
increase. Further, shares may also be used to meet obliga-
tions towards Group employees arising from share option
programs. The share buyback will be fi nanced exclusively
from the Group’s free cash fl ow. The buyback program started
on January 30, 2008, and will be conducted in accordance with
the Commission Regulation (EC) No. 2273 / 2003 of Decem-
ber 22, 2003. As at February 15, 2008, adidas AG had bought
back 1,180,000 shares with an average purchase price of
€ 42.68. In line with the Commission Regulation (EC)
No. 2273 / 2003, adidas AG provides regular updates on the
progress of the share buyback on its corporate website.
 www.adidas-Group.com/sharebuyback
NO OTHER SUBSEQUENT CHANGES Since the end of 2007,
there have been no signifi cant macroeconomic, sociopolitical,
legal or fi nancing changes which we expect to infl uence our
business materially going forward. In addition, there have been
no major management changes since the end of 2007.