Reebok 2015 Annual Report Download - page 26

TO OUR SHAREHOLDERS
Supervisory Board Report
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TOPICS FOR THE ENTIRE SUPERVISORY BOARD
Our consultations and examinations focused on the following topics:
SITUATION AND BUSINESS DEVELOPMENT
The development of sales and earnings, the employment situation as well as the financial position of the
Group and the business development of the Group’s individual business areas and markets were presented to
us in detail by the Executive Board following the close of the respective quarter and were discussed regularly.
Further ongoing topics for discussion were the possible impact of global economic developments as well as
the development of our individual brands and markets.
In February 2015, the Executive Board presented us with details of the new strategic business plan Creating the
New for the period until 2020, established on the three key strategic pillars of Speed, Cities and Open Source.
At our meeting in March, we reviewed and dealt intensively with the KPMG-certified 2014 annual financial
statements and consolidated financial statements, including the combined management report for adidas AG
and the Group, as well as the Executive Board’s proposal regarding the appropriation of retained earnings. At
this meeting as well as the meeting in May, we dealt in detail with the subject of retail profitability.
At the meetings held in August and November, the Executive Board provided us with comprehensive information
on the continuing weakness of the golf market worldwide and the resulting unsatisfactory business development
for TaylorMade-adidas Golf in the 2015 financial year. The Executive Board provided us at both these meetings
with an extensive outlook on the expected sales development of the golf business and informed us regarding
the restructuring measures already undertaken. Following intensive discussions, we then approved the same. In
November, the Executive Board reported on the major changes to the business model resulting from the Speed
pillar of the 2020 strategic business plan. Furthermore, the Executive Board reported extensively on the measures
the company had since taken to redress the allegations of, in some cases, adverse working conditions under
the temporary work agencies used by the company at the Central Distribution Centre (CDC) in Rieste, Germany.
TRANSACTIONS REQUIRING SUPERVISORY BOARDAPPROVAL
In accordance with statutory regulations and the Rules of Procedure of the Supervisory Board, certain
transactions and measures require a formal resolution or the prior approval of the Supervisory Board.
The topic of our February meeting was, after thorough discussion, the resolution on the 2015 Budget and
Investment Plan presented by the Executive Board. In March, we resolved upon the resolutions to be proposed
to the 2015 Annual General Meeting, including the proposal regarding the appropriation of retained earnings
for the 2014 financial year as well as the proposal to approve the compensation system for the members of
the Executive Board.
At the meetings in March and November, the Executive Board reported on the investment into the extension
of office buildings at the World of Sports on the Herzogenaurach campus, which we approved in November
after in-depth consultation and discussion. At our meeting in May, we discussed the strategic and financial
advantages of acquiring the hitherto rented, strategically important distribution centre in Chekhov, Russia,
which we approved in the interest of optimising profitability. At the August meeting, we discussed in detail the
Executive Board’s planned acquisition of all shares in runtastic GmbH, Austria, which, with its comprehensive
app portfolio, enables the company to further expand its digital marketing. We then approved the acquisition
at a purchase price of € 220 million.