Adidas 1996 Annual Report Download - page 39

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39
1996 saw excellent performances
in all major European and in the
U.S. stock markets. The diminishing
fear of inflation combined with the
need to spur GDP growth in Europe
and the U.S. led central banks to
sustain
low interest rate levels, which
created
a favorable macroeconomic
environment for stock markets. Spe
-
cial effects such as record transac-
tion
volumes from mergers and take-
overs
in the U.S. and Europe, and
continued privatization and corporate
restructurings in Europe have in-
creasingly attracted funds from insti-
tutional investors into stock markets.
Within this overall positive framework
of international capital markets in
1996, the adidas share has outper-
formed its relevant benchmark indi-
ces.
For example, at the end of 1996,
the adidas share has increased its
value by 75% since flotation whilst
the DAX-30, the German stock mar-
ket index comprising the 30 largest
German blue chip companies, ap-
preciated
31% for the same period.
The case for invest
ing in the adidas
share is well understood by the
financial com
munity. This is perhaps
best illustrated by the
extensive ana-
lyst coverage of adidas
by major
investment banks and re
search
houses as well as by the num
ber of
major institutional investors who are
among our shareholders.
Based on the financial performance
in 1996, adidas is proposing to the
Annual General Meeting of Share-
holders a net dividend for 1996 of
DM 1.10 per share, which repre-
sents a payout ratio of 16% relative
to net income.
Key Per Share Data
(in DM, except for number of shares)
1995 1996
Year End Price 75.50 133.00
High 78.50 148.00
Low 70.25 76.00
Net Income 5.40 6.93
Dividend 0.25 1.10
Cash Flow1) 2.89 4.42
Number of Shares
Outstanding (m) 45.349 45.349
1) Net Cash Provided by Operating Activities
Average Monthly Trading Volume
All Stock Exchanges (01/96 – 12/96)
22.0
01 02 03 04 05 06 07 08 09 10 11 12
15.7
18.2
11.1
15.5
10.9 10.58.8 10.3 9.4
15.2
8.1
All German,
London and Paris
Stock Exchanges
(million shares)
mLondon and Paris
Stock Exchanges
m All German
Stock Exchanges
(DAX and IBIS
Trading Volume)
The adidas Share
Relative Share Price Performance Since Flotation
17.11.95
01.12.95
15.12.95
29.12.95
12.01.96
26.01.96
09.02.96
23.02.96
08.03.96
22.03.96
04.04.96
19-04.96
03.05.96
17.05.96
31.05.96
14.06.96
28.06.96
12.07.96
26.07.96
09.08.96
23.08.96
06.09.96
20.09.96
04.10.96
18.10.96
01.11.96
15.11.96
29.11.96
13.12.96
30.12.96
mDAX
m adidas
200
190
180
170
160
150
140
130
120
110
100
THE ADIDAS SHARE