• DEUTSCH

Our Share

In 2010, international stock markets and the adidas AG share increased markedly. The improving global macroeconomic environment, strong corporate earnings and rising consumer confidence supported equity market growth. These factors more than offset the negative impacts from the sovereign debt crisis in the euro area’s peripheral countries. The strong recovery in adidas Group sales and earnings as well as the announcement of the Group’s strategic business plan “Route 2015” drove the adidas AG share up 29% in 2010, thereby significantly outperforming the DAX-30, which gained 16% over the same period. As a result of the increase in the Group’s net income attributable to shareholders in 2010, we intend to propose a higher dividend of € 0.80 per share at our 2011 Annual General Meeting compared to € 0.35 per share in the prior year.

International stock markets continue prior year momentum

International stock markets, the DAX-30 and the adidas AG share sustained the positive momentum of the prior year in 2010, continuing an upward trend with investor confidence returning to equities on relatively low valuations. Over the course of the year, the adidas AG share price increased 29%. Our share outperformed the DAX-30, but underperformed the MSCI World Textiles, Apparel & Luxury Goods Index, which gained 16% and 44%, respectively see 02. The strong performance of the latter was mainly attributable to the high share of luxury goods companies in the index, which on average outperformed companies in the sporting goods sector.

At the beginning of the year, international stock markets were spurred by the continuation of liberal monetary policies adopted by central banks, improving economic data points as well as positive news flow during the 2009 full year earnings season. However, throughout the second quarter, the emergence of signals indicating a slowdown of the global economic recovery in tandem with the sovereign debt crisis in the euro area’s peripheral countries resulted in a decline across all major global indices.

In the third quarter, market sentiment reversed, with most international indices gaining substantially. This was attributable to strong corporate earnings announcements for the first half of 2010 and the better than expected outcome of the European bank stress test. Signs of sustained liberal US Federal Reserve policies also contributed to the positive development. In the fourth quarter, global equity markets continued to increase. Despite the emergence of inflationary pressure in China, positive investor sentiment prevailed due to an increasing number of data points indicating that the global economy and corporate earnings will continue to improve in 2011.

adidas AG share price reflects strong operational improvements

The adidas AG share increased strongly at the beginning of the year, outperforming peers and the general market as investor confidence in a successful turnaround of the Reebok brand increased. Although our 2009 results were well received by investors and analysts, market reaction to our 2010 outlook was subdued. Nevertheless, in line with rising equity markets and positive analyst commentary which added to generally improving sentiment, the adidas AG share reversed the downward trend towards the end of the first quarter.