Reebok 2011 Annual Report Download - page 58

adidas Group
2011 Annual Report
TO OUR SHAREHOLDERS
54
2011
01.8 Our Share
Our Share
In 2011, international stock market performance varied considerably. The sovereign debt crisis in the euro
area as well as a slowing global economic outlook were major concerns and catalysts for volatile markets
throughout the year. The political unrest in the Middle East and Northern Africa as well as the devastating
earthquake and tsunami in Japan also weighed on financial markets. As a result, the DAX-30 and the MSCI
World Textiles, Apparel & Luxury Goods Index decreased 15% and 4%, respectively. Due to consistently
strong financial results throughout 2011 and rising confidence in the adidas Group’s strategic business
plan Route 2015, the adidas AG share clearly outperformed both indices, gaining 3% over the period.
With further balance sheet improvements and the strong increase in the Group’s net income attributable
to shareholders in 2011, we intend to propose a 25% higher dividend compared to the prior year at our
2012 Annual General Meeting.
01.8
Mixed international stock market development in 2011
In 2011, the performance of international stock markets was mixed,
with European and Asian indices suffering, while US equities showed
resilience despite various negative headwinds. The adidas AG share
price increased 3% in 2011, clearly outperforming the DAX-30 and the
MSCI World Textiles, Apparel & Luxury Goods Index, which declined
15% and 4%, respectively DIAGRAM 02 . The Dow Jones Index gained
6%. At the beginning of the year, positive news flow during the 2010
earnings season and improving economic data points from the USA
provided impetus for international stock markets. However, the
political unrest in the Middle East as well as the devastating earth-
quake and tsunami in Japan weighed on investor sentiment towards
the end of the first quarter. Despite headwinds, particularly the
sharpening sovereign debt crisis in the euro area as well as rising
inflationary pressures, international stock markets were resilient
during the second quarter. This was mainly due to strong first quarter
corporate earnings and buoyant M&A activity. In the third quarter,
however, most international indices collapsed. The DAX-30 declined
25%, recording its highest quarterly loss since the third quarter of
2002, which reflected the escalating sovereign debt crisis, particu-
larly in Greece, Spain and Italy. In addition, the downgrade of the US
debt rating by Standard & Poor’s at the beginning of August as well as
a slump in leading economic indicators added to intensifying reces-
sionary fears and unsettled equity markets. Following these massive
losses, global stock markets recovered in the fourth quarter as the
instalment of new governments in Spain, Greece and Italy increased
investor confidence in the ability of policymakers to resolve the
crisis. Furthermore, surprisingly robust US economic data provided
additional support. Nevertheless, signals of a slowdown of economic
growth in emerging economies, particularly China, growing concerns
with regard to the euro area’s economic outlook and deteriorating
comments regarding corporate earnings led to volatile trading in the
final weeks of the year.
adidas AG share price outperforms market
Following significant gains in 2010, the adidas AG share underper-
formed more cyclical companies at the beginning of 2011. In addition,
rapid increases in raw material prices such as cotton put pressure
on the overall sporting goods and apparel industries. However, from
February onwards, investor sentiment towards our share started to
improve amid more and more evidence of strong sales trends emerging
with athletic footwear and apparel retailers. The adidas Group 2010
results publication as well as the increased revenue outlook for 2011
benefited the share price at the beginning of March. The positive
trend, however, was reversed towards the end of the quarter following
the tragic events in Japan. After trading sideways, and in line with
01 The adidas AG share
Number of shares outstanding
2011 average 209,216,186
At year-end 2011 1) 209,216,186
Type of share Registered no-par-value share
Free float 100%
Initial Public Offering November 17, 1995
Share split June 6, 2006 (in a ratio of 1: 4)
Stock exchange All German stock exchanges
Stock registration number
(ISIN) DE000A1EWWW0
Stock symbol ADS, ADSGn.DE
Important indices
DAX-30
MSCI World Textiles, Apparel & Luxury Goods
Deutsche Börse Prime Consumer
Dow Jones STOXX
Dow Jones EURO STOXX
Dow Jones Sustainability Indexes
FTSE4Good Europe Index
Ethibel Sustainability Index Excellence Europe
ASPI Eurozone Index
ECPI Ethical Index EMU
STOXX Global ESG Leaders
1) All shares carry full dividend rights.