Reebok 2013 Annual Report Download - page 65

adidas Group
/
2013 Annual Report
To Our Shareholders
61
2013
/
01.10
/
Our Share
Level 1 ADR performs in line with common stock
Since its launch on December 30, 2004, our Level 1 American Depositary
Receipt (ADR) facility has enjoyed great popularity among American
investors. Deutsche Bank Trust Company Americas runs our Level 1 ADR
Programme. Our Level 1 ADR closed 2013 at US $ 64.23, representing
an increase of 43% versus the prior year level (2012: US $ 44.80). The
more pronounced increase of the Level 1 ADR price compared to the
ordinary share price was due to the depreciation of the US dollar versus
the euro at the end of 2013 compared to year-end 2012. While the
number of Level 1 ADRs outstanding reached a new high in July 2013
with 12.8 million Level 1 ADRs outstanding, the number decreased
to 9.2 million at year-end 2013. This compares to 11.8 million Level 1
ADRs outstanding at the end of 2012. The average daily trading volume
decreased 14% to 35,800 ADRs in 2013 (2012: 41,500). Since November
2007, the adidas AG ADR is quoted on the OTCQX International Premier
market, the highest over-the-counter market tier. This electronic
trading forum includes leading international companies with substantial
operating businesses and credible disclosure policies. Further
information on our ADR Programme can be found on our website at
:
//
WWW.ADIDAS-GROUP.COM/ADR.
adidas AG share historically outperforms
benchmark indices
The adidas Group is committed to continuously enhancing shareholder
value. The long-term development of our share price reflects investor
confidence and the growth potential of our Group. Over the last ten years,
our share has gained 310%. This represents a clear outperformance of
the DAX-30, which increased 141% during the period
/
TABLE 01.
adidas AG share member of important indices
The adidas AG share is included in a variety of high-quality indices
around the world, most importantly the DAX-30 and the MSCI World
Textiles, Apparel & Luxury Goods Index
/
TABLE 03. The DAX-30 is
a blue chip stock market index consisting of the 30 major German
companies trading on the Frankfurt Stock Exchange. The MSCI World
Textiles, Apparel & Luxury Goods Index comprises our Group’s major
competitors. At December 31, 2013, our weighting in the DAX-30, which
is calculated on the basis of free float market capitalisation and twelve-
month share turnover increased to 2.36% (2012: 2.13%). Our higher
weighting compared to the prior year was mainly a result of the increase
in share turnover and the market capitalisation of adidas AG. Within
the DAX-30, we ranked 16 on market capitalisation (2012: 16) and 17 on
turnover (2012: 19) at year-end 2013.
Strong sustainability track record reflected in
index memberships
In recognition of our social and environmental efforts, adidas AG is
listed in several sustainability indices. For the 14th consecutive time,
adidas AG has been selected to join the Dow Jones Sustainability Indices
(DJSI), the world’s first global sustainability index family tracking the
performance of more than 300 leading sustainability-driven companies
worldwide. In the category “Textiles, Apparel & Luxury Goods”,
adidas AG was rated as industry leader in sustainability issues and
corporate responsibility for the tenth time. In addition, adidas AG was
again included in the FTSE4Good Europe Index and the Vigeo Group’s
Ethibel Sustainability Index Excellence Europe and Excellence Global.
Also, adidas AG was included in three of the newly created Euronext
Vigeo indices. In addition, adidas AG remains a component of the
STOXX Global ESG Leaders indices for the third consecutive year. The
index family is made up of three specialised indices for the categories
environmental, social and governance, and one broad index which
sums up the specialised indices. In detail, these are the STOXX Global
ESG Environmental Leaders, STOXX Global ESG Social Leaders, STOXX
Global ESG Governance Leaders and STOXX Global ESG Leaders indices.
The index family is based on relevant key performance indicators (KPIs)
provided by the index partner Sustainalytics, a leading provider of ESG
research and analysis
/
TABLE 03.
Convertible bond significantly above prior year level
In March 2012, adidas AG successfully issued a convertible bond, due on
June 14, 2019, for an aggregate nominal amount of € 500 million
/
SEE
NOTE 17, P. 209. The bonds are not callable by the issuer or putable by
the bondholders until June 2017. The bonds are convertible into up to
6.02 million new or existing adidas AG shares. Proceeds from the offering
have allowed the Group to further optimise its debt structure. The bonds
were priced with a 0.25% annual coupon and a conversion premium of
40% above the reference price of € 59.61, resulting in an initial conversion
price of € 83.46 per share. As a consequence of contractual provisions
relating to dividend protection, the conversion price was adjusted to
€ 83.10 per share. This adjustment became effective on May 9, 2013. The
convertible bond closed the year at € 129.96, significantly above the prior
year value level of € 114.30.