Reebok 2012 Annual Report Download - page 184

adidas Group
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2012 Annual Report
Group Management Report – Financial Review
162
2012
Subsequent Events and Outlook
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03.4
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Efficient liquidity management in place for 2013
and beyond
Efficient liquidity management remains a priority for the adidas Group
in 2013. We focus on continuously anticipating the operating cash flows
of our Group segments, as this represents the main source of liquidity
within the Group. On a quarterly basis, liquidity is forecasted on a
multi-year financial and liquidity plan. Long-term liquidity is ensured by
continued positive operating cash flows and sufficient unused committed
and uncommitted credit facilities. In 2013, we do not expect any major
financing activities in order to replace maturing credit facilities
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SEE
TREASURY, P. 141.
Management to propose dividend of € 1.35
In light of the strong cash flow generation in 2012 and resulting improved
net cash position at year-end, Management will recommend paying a
dividend of € 1.35 to shareholders at the Annual General Meeting (AGM)
on May 8, 2013, representing an increase of 35% compared to the prior
year (2011: € 1.00). Subject to shareholder approval, the dividend will be
paid on May 9, 2013. The proposal represents a payout ratio of 35.7% of
net income attributable to shareholders excluding goodwill impairment
losses, compared to 34.1% in the prior year. This complies with our
dividend policy, according to which we intend to pay out between 20%
and 40% of net income attributable to shareholders annually. Based on
the number of shares outstanding at the end of 2012, the dividend payout
will thus increase to € 282 million compared to € 209 million in the prior
year.
adidas Group expects further growth and margin
improvements in 2014 and 2015
For 2014 and 2015, in line with our Route 2015 strategic business plan
aspirations, we project adidas Group sales and net income to increase,
and we also expect further improvements in operating margin. Further
details of our Route 2015 strategic goals and initiatives for our segments
and brands are outlined in the Group Strategy section of this Annual
Report
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SEE GROUP STRATEGY, P. 68.
Management assessment of financial outlook
Since the adidas Group publicly announced its Route 2015 strategic
business plan in 2010, we have made significant progress towards our
Route 2015 aspirations. Given the strong performance over the last two
years, we are confident that we will reach our strategic goals. We will
remain focused on creating long-term sustainable shareholder value
and continue to pursue all targets with utmost diligence. In 2013, we
will see a specific emphasis on driving improvements in our operating
margin as well as creating a platform for growth in the upcoming 2014
event year. The outlook we are presenting for 2013 underpins the validity
of our Route 2015 plan and aspirations.