Adidas 2005 Annual Report Download - page 31

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27
Investor Relations Activities Further Increased
In 2005, the adidas Group again intensifi ed relationships with
analysts as well as institutional and private investors. In the
course of the year, Management and the Investor Relations
team took part in several international conferences. Our
presentations revolved around our fi nancial results as well
as strategic initiatives such as the Salomon divestiture and
the acquisition of Reebok. We also conducted numerous
roadshows in 2005 and were present at several retail inves-
tor events throughout Germany. In October 2005, we invited
the fi nancial community to participate in our sixth Annual
Investor Day at our headquarters in Herzogenaurach. Man-
agement, including operational heads of all our brands and
regions, gave an overview of results, targets and strategies
for all brands and regions. Participants also welcomed the
chance to get a fi rst glimpse of our 2006 FIFA World Cup™
products and strategy. As a result of our ongoing activities
to ensure excellent Investor Relations, our team was top-
ranked in the industry in the annual survey conducted by the
Institutional Investor magazine.
Website Serves As Important Communication Tool
Our award-winning website serves as an important platform
to communicate with our shareholders. At www.adidas-Group.
com, we present a schedule of all conferences and roadshows
our Management attends. Furthermore, we make all presen-
tations held at these events publicly available for download
to ensure equal treatment of all our shareholders. We also
offer live webcasts of our analyst conferences, the Annual
General Meeting, as well as the Investor Day. All webcasts
are archived and therefore remain accessible even after the
event. Furthermore, our website offers extensive informa-
tion concerning our share as well as our latest fi nancial data
and an interactive analyst allowing for a detailed analysis of
the Group’s historical fi nancial performance. Ensuring top-
notch fi nancial communication with our shareholders and the
fi nancial community will remain a primary goal in 2006.
Dividend Level Maintained
The adidas-Salomon AG Executive and Supervisory Boards will
recommend paying a dividend of € 1.30 to our shareholders at
the Annual General Meeting on May 11, 2006. Subject to the
meeting’s approval, the dividend will be paid on May 12, 2006.
The proposed dividend per share is stable compared to the prior
year’s level despite the strong increase in the number of shares
outstanding and the high debt position associated with fi nanc-
ing the Reebok acquisition (see Group Business Performance).
The total payout of approximately € 66 million (2004: € 60 mil-
lion) refl ects a payout ratio of 17% (2004: 19%). The dividend
proposal follows our new dividend policy announced in 2005,
under which the adidas Group intends to pay out between 15
and 25% of consolidated net income and refl ects our philo-
sophy of sharing our operational and fi nancial success with our
shareholders.
Shareholder Base Becomes Even More International
Based on the amount of invitations to our Annual General
Meeting in May 2005, we currently estimate that we have
around 69,000 shareholders. According to our latest annual
ownership analysis conducted in March 2005, known insti-
tutional investors accounted for 90% (2004: 84%) of our out-
standing shares. Shareholdings in North America declined
slightly to 25% (2004: 28%). German institutional investors
accounted for 13% (2004: 16%) of adidas-Salomon AG shares.
The shareholdings in the rest of Europe excluding Germany
increased strongly to 43% (2004: 36%). Holdings of other in-
stitutional shareholders declined slightly to 3% (2004: 4%).
Smaller, undisclosed holdings, which also include private
investors, made up 11% of the shares outstanding (2004: 11%).
The adidas Group Management, which comprises current
members of the Executive and Supervisory Boards, continues
to hold less than 5% in total. Information regarding Directors’
Dealings can be found in the Corporate Governance section of
our corporate website at www.adidas-Group.com and in the
Corporate Governance Report in this report.
Rest of the world 3%
Shareholder Structure1)
North America 25%
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Other, undisclosed
Holdings 11%
2005 2004
Basic earnings per share1)
(before goodwill amortization) € 8.19 7.90
(after goodwill amortization) € 8.19 6.88
Diluted earnings per share1) € 7.73 6.54
Year-end price € 160.00 118.75
High € 162.70 120.93
Low € 112.03 88.76
Dividend per share € 1.302) 1.30
Dividend payout € 65,990,282 59,616,700
Dividend payout ratio % 17 19
Dividend yield (12-month average) % 0.81 1.09
Price-earnings ratio at year-end 16.60 17.26
Average trading volume
per trading day shares 424,093 377,995
DAX-30 ranking3) at year-end
by market capitalization 18 21
by turnover 21 22
1) Includes income from continuing and discontinued operations
2) Subject to Annual General Meeting approval
3) As reported by Deutsche Börse
Share Ratios at a Glance
Rest of Europe 43%
Management <5%
Germany 13%
1) As at March 2005
Our Share