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Annual Report

Annual Report. Laura Dolan ACG2021 Section 080. Executive Summary.

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Annual Report

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  1. Annual Report Laura Dolan ACG2021 Section 080

  2. Executive Summary PUMA has the long-term mission of becoming the most desirable Sport lifestyle company. They will continue to reach their goals by harnessing resources and experiences to provide their consumers with innovative products that successfully fuse the creative influences from the world of sport, lifestyle and fashion. Puma has shown an increase in their working capital, gross profit, and net income from 2003-3004. The company is growing at a steady pace and the outlook for the company as a profitable and successful company is very positive. Puma Annual Report

  3. Introduction CEO Jochen Zeitz Home Office Herzogenaurach, Germany Ending date of last fiscal year December 31, 2005 Principal Products/Services PUMA & Tretorn: footwear apparal and accessories Main geographic areas of activity Italia, Jamaica, United States, Asia

  4. Audit Report Independent Auditors: • Detlev Cuntz- German Public Accountant • Ulrich V. Stork- German Public Accountant What the Auditors had to say about PUMA: The consolidated financial statements give a true and fair view of the net assets, financial position, results of operations and cashflows of the Group in the financial year in compliance with IFRS. It is confirmed that the consolidated financial statements and the group management report satisfy the conditions required for the Company’s exemption from its duty to prepare consolidated financial statements and the group management report in accordance with German law.

  5. Stock Market Information *Prices in Million Euros • Stock Price: € 258.82 • 12 Month Trading Range: €140.15 – €219.54 • Dividends per share: € 1.00 per share • Information as of: January 25, 2006 The outlook for the Puma company involves expansion. Although they do not plan to have as rapid of a growth as seen from 2003-2004, they will still have moderate growth. In my opinion, I would buy Puma stock because of the expected growth.

  6. Industry Situation and Company Plans Puma has plans for expansion, just not with the same acceleration as before. The current consumer trend in the USA toward expensive, performance-based products could be slowed by less consumer spending due to higher oil prices. the soccer World Cup in 2006 is likely to begin impacting the market at the end of 2005. Despite the expectations of cautious expansion of the world economy, orders for the first half of 2005 give rise to a positive outlook. It is clear that the future still holds considerable opportunity for PUMA as a strong global brand in the international market. But success is far from assured. Puma’s results have shown excellent strategic flexibility as they progress towards the completion of Phase III and in preparation of Phase IV of the company’s development plan. Puma Outlook Letter to Shareholders

  7. Income Statement The Income Statement is a multi- step format. The performance for 2004 has been very positive for Puma. The company shown an increase in the areas above.

  8. Balance Sheet Puma has increased from 2003-2004 in all of the balance sheet accounts. There has been a more drastric increase in the company assets and in stockholders equity than in liabilities.

  9. Statement of Cash Flows The cash flows from operations in 2004 were €8.40 more than the net income. In 2003 the cash flows from operations were € 14.3 less than the net income Puma is growing through their investing activities by reinvesting money earned back into the company. Puma’s primary source of financing is through operating activities. They are working on paying off their liabilities. Overall, cash has increased over the past two years.

  10. Significant Consolidation, Accounting and Valuation Principles Liquid Assets Inventories Receivables Other Short-term Financial Assets Deferred Taxes Property Plant and Equipment Goodwill Other Intangible Assets Other Long-term Financial Assets Shares in Associated Companies Financial Liabilities Provisions Equity Equity Participation Plans Personnel Expenses Selling, General and Administrative Expenses Financial Result Taxes on Income Earnings per Share Management of Currency Risk Segment Reporting Disclosures Concerning the Board German Corporate Governance Code Topics of the Notes to the Financial Statements: Accounting Policies The consolidated financial statements of PUMA AG and its subsidiaries, were prepared in accordance with the “International Financial Reporting Standards” issued by the International Accounting Standards Board.

  11. Financial Analysis Liquidity Ratios Over the past two years, Puma’s working capital and current ratio has increased. This shows that Puma has increased their liquidity. Puma’s Receivable Turnover has also increased, as well as their average days sales and their inventory turnover. This is an improvement for Puma since 2003

  12. Financial Analysis Profitability Ratios Puma has shown an increase from 2003 to 2004 on each of the profitability ratios, meaning Puma has increased it’s profit from 2003 to 2004.

  13. Financial Analysis Solvency Ratios The debt to equity ratio has been less than one for the past two years which means the shareholders own the company rather than the debt collectors. The ratio did raise from 2003-2004.

  14. Financial Analysis Market Strength Ratios

  15. Annual Report The End

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