NET INCOME ATTRIBUTABLE TO SHAREHOLDERS GROWS 14 %
The Group’s net income attributable to shareholders increased
14 % to € 551 million in 2007 from € 483 million in 2006. This
development was in line with initial Management expectations
that targeted an increase at a rate approaching 15 %. The Group’s
higher operating profit, lower net financial expenses and
lower
minority interests each contributed to this development.
The Group’s tax rate increased by 0.4 percentage points to
31.8 % in 2007 (2006: 31.4 %). The non-recurrence of a one-time
tax benefit, which had a positive impact in the prior year, was
partly compensated for by favorable tax rate changes in several
countries. 
see Note 27
MINORITY INTERESTS DECLINE BY 71 %
The Group’s minority
interests decreased 71 % to € 4 million in 2007 from € 13 million
in 2006. The strong decline in minority interests compared
to the prior year was primarily due to the buyout of the adidas
joint venture partner in Korea. Effective September 1, 2006,
the Group purchased the remaining 49 % of shares.
| Net Income Attributable to Shareholders € in millions |
|
 |
|
| 1) |
Including Reebok business segment from February 1, 2006 onwards. Including Greg Norman apparel business from February 1, 2006 to November 30, 2006. |
| Net Income Attributable to Shareholders by Quarter1) € in millions |
|
 |
|
| 1) | Including Reebok business segment from February 1, 2006 onwards. Including Greg Norman apparel business from February 1, 2006 to November 30, 2006. |
BASIC AND DILUTED EARNINGS PER SHARE BOTH INCREASE
14 %
In line with the increase of the Group’s net income attributable
to shareholders, basic earnings per share increased
14 % to € 2.71 in 2007 versus € 2.37 in 2006. The Group’s total
number of shares outstanding increased by 92,100 shares to
203,628,960 at the end of 2007 from 203,536,860 at the end of
2006 as a result of shares from stock options exercised as part
of Tranches II, III, IV and V of the Management Share Option
Plan (MSOP) of adidas AG. Consequently, the weighted average
number of shares used in the calculation of basic earnings per
share was 203,594,975 (2006 average: 203,386,104). Diluted
earnings per share in 2007 also increased 14 % to € 2.57 from
€ 2.25 in the prior year. The weighted average number of
shares used in the calculation of diluted earnings per share
was 219,467,177 (2006 average: 219,399,522). The number of
diluted shares outstanding at year-end 2007 was 219,485,875
(2006: 219,485,875). The dilutive effect largely results from
approximately
sixteen million additional potential shares that
could be created in relation to our outstanding convertible
bond, for which conversion criteria were first met at the end
of the fourth quarter of 2004.
