Reebok 2015 Annual Report Download - page 228

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CONSOLIDATED FINANCIAL STATEMENTS
Notes – Notes to the Consolidated Statement of Financial Position
Capital management
The Group’s policy is to maintain a strong capital base so as to uphold investor, creditor and market
confidence and to sustain future development of the business.
The Group seeks to maintain a balance between a higher return on equity that might be possible with
higher levels of borrowings and the advantages and security afforded by a sound capital position. The Group
further aims to maintain net debt below two times EBITDA over the long term.
Financial leverage amounts to 8.1% and is defined as the ratio between net borrowings (short- and
long-term borrowings less cash and cash equivalents as well as short-term financial assets) in an amount
of € 460 million (2014: € 185 million) and shareholders’ equity in an amount of € 5.666 billion (2014:
€ 5.624 billion). EBITDA (continuing operations) amounted to € 1.475 billion for the financial year ending
December 31, 2015 (2014: € 1.283 billion). The ratio between net borrowings and EBITDA (continuing
operations) amounted to 0.3 for the financial year ending December 31, 2015 (2014: 0.1).
Reserves
Reserves within shareholders’ equity are as follows:
•Capital reserve: primarily comprises the paid premium for the issuance of share capital as well as the
equity component of issued convertible bonds.
•Cumulative currency translation differences: comprise all foreign currency differences arising from
the translation of the financial statements of foreign operations.
•
Hedging reserve: comprises the effective portion of the cumulative net change in the fair value of
cash flow hedges related to hedged transactions that have not yet occurred as well as of hedges of net
investments in foreign subsidiaries.
•Other reserves: comprise the remeasurements of defined benefit plans [consisting of the cumulative
net change of actuarial gains or losses relating to the defined benefit obligations, the return on plan
assets (excluding interest income) and the asset ceiling effect] as well as expenses recognised for share
option plans and effects from the acquisition of non-controlling interests.
•
Retained earnings: comprise the accumulated profits less dividends paid as well as considerations
paid for the repurchase of treasury shares exceeding the nominal value.
Distributable profits and dividends
Distributable profits to shareholders are determined by reference to the retained earnings of adidas AG
and calculated under German Commercial Law.
Based on the resolution of the 2015 Annual General Meeting, the dividend for 2014 was € 1.50 per share
(total amount: € 306 million). The Executive Board of adidas AG will propose to shareholders a dividend
payment of € 1.60 per dividend-entitled share for the year 2015 to be made from retained earnings of
€ 643 million reported in the financial statements of adidas AG according to the German Commercial Code
as at December 31, 2015. The subsequent remaining amount will be carried forward.
As at December 31, 2015, 200,197,417 dividend-entitled shares exist, resulting in a dividend payment
of € 320 million.