Reebok 2010 Annual Report Download - page 38

34 To Our Shareholders Our Share
Our ShareOur Share
In 2010, international stock markets and the adidas AG share increased markedly. The improving global macroeconomic
environment, strong corporate earnings and rising consumer confidence supported equity market growth. These factors more
than offset the negative impacts from the sovereign debt crisis in the euro area’s peripheral countries. The strong recovery
in adidas Group sales and earnings as well as the announcement of the Group’s strategic business plan “Route 2015” drove the
adidas AG share up 29% in 2010, thereby significantly outperforming the DAX-30, which gained 16% over the same period.
As a result of the increase in the Group’s net income attributable to shareholders in 2010, we intend to propose a higher dividend
of € 0.80 per share at our 2011 Annual General Meeting compared to € 0.35 per share in the prior year.
International stock markets continue International stock markets continue
prior year momentumprior year momentum
International stock markets, the DAX-30
and the adidas AG share sustained the
positive momentum of the prior year in
2010, continuing an upward trend with
investor confidence returning to equities
on relatively low valuations. Over the
course of the year, the adidas AG share
price increased 29%. Our share out -
performed the DAX-30, but under-
performed the MSCI World Textiles,
Apparel & Luxury Goods Index, which
gained 16% and 44%, respectively
see 02. The strong performance
of the latter was mainly attributable
to the high share of luxury goods
companies in the index, which on
average out performed companies in
the sporting goods sector.
The adidas AG share
Number of shares outstanding
2010 average 209,216,186
At year-end 2010 1 ) 209,216,186
Type of share Registered no-par-value share
Free float 100%
Initial Public Offering November 17, 1995
Share split June 6, 2006 (in a ratio of 1: 4)
Stock exchange All German stock exchanges
Stock registration number (ISIN) 2 ) DE000A1EWWW0
Stock symbol ADS, ADSG.DE
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 Index Excellence Europe
ASPI Eurozone Index
ECPI Ethical Index EMU
1) All shares carry full dividend rights.
2) On October 11, 2010, adidas AG converted its shares to registered no-par-value
shares. As a result, adidas AG registered shares are now traded under a new
ISIN DE000A1EWWW0 on the stock exchange (previously: DE0005003404).
01
At the beginning of the year, interna-
tional stock markets were spurred by the
continuation of liberal monetary policies
adopted by central banks, improving
economic data points as well as positive
news flow during the 2009 full year
earnings season. However, throughout
the second quarter, the emergence of
signals indicating a slowdown of the
global economic recovery in tandem
with the sovereign debt crisis in the euro
area’s peripheral countries resulted in a
decline across all major global indices.
In the third quarter, market
sentiment reversed, with most inter-
national indices gaining substantially.
This was attributable to strong corporate
earnings announcements for the
first half of 2010 and the better than
expected outcome of the European bank
stress test. Signs of sustained liberal
US Federal Reserve policies also contrib-
uted to the positive development. In the
fourth quarter, global equity markets
continued to increase. Despite the
emergence of inflationary pressure
in China, positive investor sentiment
prevailed due to an increasing number
of data points indicating that the global
economy and corporate earnings will
continue to improve in 2011.
adidas AG share price reflects strong adidas AG share price reflects strong
operational improvementsoperational improvements
The adidas AG share increased strongly
at the beginning of the year, outper-
forming peers and the general market as
investor confidence in a successful turn-
around of the Reebok brand increased.
Although our 2009 results were well
received by investors and analysts,
market reaction to our 2010 outlook
was subdued. Nevertheless, in line with
rising equity markets and positive analyst
commentary which added to generally
improving sentiment, the adidas AG share
reversed the downward trend towards the
end of the first quarter.