Reebok 2012 Annual Report Download - page 82

8
adidas Group
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2012 Annual Report
To Our Shareholders
60
2012
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01.8
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Our Share
Our Share
In 2012, international stock markets and the adidas AG share increased considerably. Further
progress in resolving the sovereign debt crisis in the euro area as well as robust US economic data
and expansionary Fed policies were major catalysts for strong market developments throughout
the year. However, disappointing economic data in the euro area, slowing economic growth rates in
Greater China as well as the looming fiscal cliff in the USA temporarily weighed on financial markets.
The DAX-30 and the MSCI World Textiles, Apparel & Luxury Goods Index increased 29% and 26%,
respectively, in 2012. Due to consistently strong financial results throughout the year and market
participants’ rising confidence in the adidas Group’s Route 2015 strategic business plan, the adidas AG
share outperformed both indices, gaining 34% in the period. With further balance sheet improvements
and the strong increase in the Group’s net income attributable to shareholders excluding goodwill
impairment losses in 2012, we intend to propose a 35% higher dividend compared to the prior year at
our 2013 Annual General Meeting.
International stock markets maintain positive momentum
In 2012, international stock markets maintained the positive momentum
from the end of the prior year, driven in particular by European and
Asian indices. At the beginning of 2012, international stock markets
improved significantly, mainly due to measures from European
policymakers to resolve the sovereign debt crisis in the euro area. In
addition, investor confidence was also strengthened following a series
of solid US economic indicators. However, in the second quarter of
2012, international stock markets reversed the positive trend and
suffered considerable losses. This was mainly due to a worsening
of the sovereign debt crisis in the euro area, fuelled by persistently
negative economic data reported in the region. The emergence of more
and more indicators signalling a slowdown of growth of the US and, in
particular, the Chinese economy also contributed to negative investor
sentiment. In the third quarter, global stock markets recovered, posting
considerable gains. This development mainly reflected the reiteration of
central bank commitments, in particular by the ECB, to provide further
economic stimuli. This more than offset the negative impact from
subdued macroeconomic indicators worldwide. Despite the looming
fiscal cliff issues in the USA, most international indices continued to gain
momentum in the fourth quarter. This was attributable to the ongoing
relief in the euro debt crisis, which included a new rescue package for
Greece as well as a recovery of leading indicators in China and Germany.
Furthermore, robust US economic data as well as an expansionary Fed
policy provided additional support. As a result, the DAX-30 and the MSCI
World Textiles, Apparel & Luxury Goods Index increased 29% and 26%,
respectively
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TABLE 01. The Dow Jones Index gained 7% during the
period.
01
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Historical performance of the adidas AG share and
important indices at year-end 2012 (in %)w
1 year 3 years 5 years 10 years Since IPO
adidas AG 34 78 31 227 596
DAX-30 29 28 (6) 163 247
MSCI World Textiles,
Apparel & Luxury Goods 26 73 53 313 312
Source: Bloomberg.
adidas AG share price outperforms market
At the beginning of the year, our share traded positively, supported
by several analyst recommendation and target price upgrades,
reflecting confidence in the positioning of the adidas Group’s brands
and the Group’s ability to benefit from the underlying strength of the
sporting goods market. On March 7, the publication of the Group’s 2011
financial results as well as the confirmation of our 2012 outlook was
well received. Nevertheless, given the strong share price appreciation
up to that date, some investors took profits, resulting in a share price
correction on the day of the results release. Towards the end of the first
quarter, these losses were more than offset, supported by favourable
market trends as well as successful investor relations marketing
activity. At the beginning of the second quarter, the adidas AG share
traded sideways, outperforming the general market weakness. The
announcement of better than expected first quarter results and an
improved outlook for the full year 2012 provided positive impetus,
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1) This section is part of the audited Group Management Report.