Reebok 2007 Annual Report Download - page 41

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ANNUAL REPORT 2007 --- adidas Group
01
STRONG SUSTAINABILITY TRACK RECORD REFLECTED IN INDEX MEMBERSHIPS In recognition of our social and environmental
efforts, adidas AG is part of several sustainability indices. In 2007, adidas AG was included in the Dow Jones Sustainability Indexes
for the eighth consecutive year. The indexes rated the adidas Group as an industry leader on sustainability issues and corporate
social responsibility in the category “footwear, clothing & accessories”. In addition, the adidas Group was again included in
the FTSE4Good Index. This positive reassessment acknowledges the Group‘s social, environmental and ethical engagement, and
encourages us to continue and intensify our efforts to improve our sustainability performance. Also, adidas AG was included in
the Vigeo Group’s Ethibel Excellence, Ethibel Pioneer and ASPI Indices. The Ethibel Indices consist of companies that meet fi nancial
and sustainability performance criteria established by the independent organization Forum Ethibel. The ASPI Eurozone Index
is the European index of reference for companies and investors wishing to commit themselves in favor of sustainable development
and corporate social responsibility. Further, the adidas Group was included for the third consecutive time in the list of The Global
100 Most Sustainable Corporations in the World.
ADIDAS AG SHARE OUTPERFORMS MAJOR INDICES 2007 was a successful year for the adidas AG share. Our share price increased
by 36 % compared to the 2006 year-end level. As a result, our share signifi cantly outperformed the DAX-30 (+ 22 %) as well as the
MSCI World Textiles, Apparel & Luxury Goods Index (+ 8 %). The DAX-30 and the MSCI World Textiles, Apparel & Luxury Goods Index
both started strongly in 2007, supported by positive macroeconomic trends, strong corporate news fl ow and merger and acquisition
activity. However, index growth stalled in the second half of the year as a result of the crisis on the US subprime mortgage market,
rising commodity prices and increasing fears about the US economy falling into a recession. Although the Federal Reserve inter-
vened three times by cutting interest rates by a total of 75 basis points, the situation on the US market remained diffi cult with
spill-over effects on the country’s economy as well as international credit and capital markets.
ADIDAS AG HISTORICALLY OUTPERFORMS BENCHMARK INDICES The adidas Group is committed to continuously enhancing
shareholder value. The long-term development of our share price refl ects investor confi dence and the growth potential of
our Group. Since our IPO in November 1995, our share has gained 490 %. This represents a clear outperformance of both the DAX-30
and the MSCI Index, which increased 266 % and 167 % respectively during the period.
ADR OUTPERFORMS COMMON STOCK DUE TO EURO APPRECIATION Since its launch on December 30, 2004, our Level 1 American
Depositary Receipt (ADR) facility has enjoyed great popularity among American investors. The Level 1 ADR closed the year at
US $ 37.20, representing an increase of 48 % versus the prior year (2006: US $ 25.11). Due to the appreciating euro, the ADR
outperformed our common stock. Despite growing volumes in the fi rst half of the year, the number of year-end ADRs outstanding
declined as a result of capital market uncertainty from the subprime mortgage crisis. The number of Level 1 ADRs outstanding
decreased slightly to 11.1 million at year-end 2007 (2006: 11.3 million). In November 2007, we decided to list the adidas AG ADR
on the international OTCQX. This electronic trading forum includes leading international companies with substantial operating
businesses and credible disclosure policies. With this listing, we expect to further increase trading of our ADRs by US investors
in 2008 and beyond.
CONVERTIBLE BOND TRADES AT A PREMIUM The publicly-traded convertible bond closed the year at € 202.65, which is 31 % higher
than its prior year level (2006: € 154.90). This represents a premium of around 0.8 % above par value of the share.
HIGH AND LOW SHARE PRICES PER MONTH
Jan. 2007 Dec. 2007
50
45
40
35
—
3
0-day movin
g
avera
ge
H
ig
h and low share pr
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ces
38.8
3
3
6.
3
6
3
8.80
3
6.7
5
41.24
3
4.
50
47.19
4
0.6
3
47.55
41.70
47.4
7
4
3
.4
0
48.16
4
2
.4
0
45.17
40
.
8
4
4
6
.
08
42.1
5
46.
2
7
43
.1
0
49.44
44.29
51.26
44.87
SHAREHOLDER RIGHTS NOTIFICATIONS RECEIVED IN 2007
Threshold Voting rights of total
Date of notifi cation Notifying party crossed shares outstanding
Dec. 20 FMR LLC > 3 % 3.06 %
May 31 UBS AG < 3 % 2.67 %
May 29 UBS AG > 3 % 3.23 %
May 14 Michael Ashley < 3 % 2.87 %
May 04 UBS AG < 3 % 2.09 %
Apr. 30 UBS AG > 3 % 3.12 %
Mar. 23 Michael Ashley > 3 % 3.14 %
Mar. 20 + 21 AMVESCAP PLC > 5 % 5.087 %