As of December 31, 2021, the Group has € 757.5 million (previous year: € 655.9 million) in cash and cash equivalents. This includes bank balances, including short-term financial investments with an original term of up to three months. The average effective interest rate of financial investments was 1.5% (previous year: 1.5%). There are no restrictions on disposition.
Inventories are allocated to the following main groups:
|
|
2021 |
2020 |
|
Raw materials, consumables and supplies |
30.2 |
15.4 |
|
Finished goods and merchandise/inventory |
|
|
|
356.2 |
324.7 |
|
|
325.5 |
273.9 |
|
|
154.9 |
128.3 |
|
|
Prepayments made |
25.9 |
0.0 |
|
Goods in transit |
535.6 |
351.7 |
|
Inventory adjustments related to returns |
64.0 |
43.9 |
|
Total |
1,492.2 |
1,138.0 |
|
|
|
|
The table shows the carrying amounts of the inventories net of value adjustments. Of the value adjustments in the amount of € 169.3 million (previous year: € 115.7 million), approx. 58.1% (previous year approx. 69.6%) were recognized as an expense under cost of sales in the financial year 2021.
The volume of inventories recorded as an expense during the period mainly includes the cost of sales shown in the consolidated income statement.
The right to return goods represents the merchandise value of the products where a return is expected.
This item consists of:
|
|
2021 |
2020 |
|
Trade receivables, gross |
906.7 |
682.9 |
|
Less provision for risks |
-58.7 |
-61.9 |
|
Trade receivables, net |
848.0 |
621.0 |
|
|
|
|
The change of the provision for risks for financial assets in the “trade receivables” class measured at amortized cost relates to receivables in connection with sales revenues from contracts with customers and has developed as follows:
|
|
2021 |
2020 |
|
Status of provision for risks as of January 1 |
61.9 |
36.8 |
|
Exchange rate differences |
1.5 |
-2.7 |
|
Additions |
11.8 |
33.9 |
|
Utilization |
-4.9 |
-3.1 |
|
Reversals |
-11.5 |
-2.9 |
|
Status of provision for risks as of December 31 |
58.7 |
61.9 |
|
|
|
|
The age structure of the trade receivables is as follows:
|
2021 |
Total |
Not due |
0-30 |
31-90 |
91-180 |
Over 180 |
|
Gross
carrying amount – |
906.7 |
771.5 |
63.6 |
19.0 |
14.5 |
38.0 |
|
Provision for risks |
58.7 |
18.6 |
3.2 |
1.2 |
4.4 |
31.4 |
|
Net
carrying amount – |
848.0 |
752.9 |
60.6 |
17.9 |
10.1 |
6.6 |
|
Expected loss rate |
|
2.4% |
5.0% |
6.1% |
30.5% |
82.6% |
|
|
|
|
|
|
|
|
Receivables due for more than 60 days are allocated to Level 3 as “objectively impaired,” the remaining receivables are allocated to Level 2.
|
2020 |
Total |
Not due |
0-30 |
31-90 |
91-180 |
Over 180 |
|
Gross
carrying amount – |
682.9 |
551.5 |
56.7 |
15.9 |
11.7 |
47.1 |
|
Provision for risks |
61.9 |
15.2 |
4.1 |
2.6 |
2.8 |
37.2 |
|
Net
carrying amount – |
621.0 |
536.3 |
52.6 |
13.3 |
8.9 |
9.9 |
|
Expected loss rate |
|
2.8% |
7.3% |
16.4% |
23.9% |
78.9% |
|
|
|
|
|
|
|
|
With respect to the net carrying amount of trade receivables, PUMA assumes that the debtors will satisfy their payment obligations or that, in the event of a default, the net carrying amount will be covered by existing credit insurance. There are no significant risk concentrations as the customer base is very broad and there are no correlations.
This item consists of:
|
|
2021 |
2020 |
|
Fair value of derivative financial instruments |
123.2 |
23.6 |
|
Other financial assets |
30.2 |
29.3 |
|
Total |
153.4 |
52.9 |
|
|
|
|
The amount shown is due within one year. The fair value corresponds to the carrying amount.
The increase in derivative financial instruments is mainly attributable to a rise in the US dollar exchange rate.
This item consists of:
|
|
2021 |
2020 |
|
Prepaid expense relating to the subsequent period |
90.2 |
50.4 |
|
Other receivables |
110.7 |
73.6 |
|
Total |
200.9 |
124.1 |
|
|
|
|
The amount shown is due within one year. The fair value corresponds to the carrying amount. The increase in prepaid expense relating to the subsequent period is primarily due to prepaid advertising and promotional expenses.
Other receivables mainly comprise
receivables relating to VAT of € 55.4 million (previous year:
€ 38.9 million) and other taxes of € 21.3 million (previous year: € 16.2 million).
Deferred taxes relate to the items shown below:
|
|
2021 |
2020 |
|
Tax loss carryforwards |
74.1 |
103.4 |
|
Non-current assets |
51.4 |
39.2 |
|
Current assets |
76.8 |
60.1 |
|
Provisions and other liabilities |
109.5 |
97.5 |
|
Deferred tax assets (before netting) |
311.8 |
300.3 |
|
Non-current assets |
62.6 |
49.8 |
|
Current assets |
11.9 |
8.2 |
|
Provisions and other liabilities |
6.3 |
5.4 |
|
Deferred tax liabilities (before netting) |
80.7 |
63.4 |
|
Deferred tax assets, net |
231.1 |
236.9 |
|
|
|
|
Of the deferred tax assets, € 174.4 million (previous year: € 141.6 million) are current, and of the deferred tax liabilities € 13.2 million (previous year: € 9.7 million) are current.
As of December 31, 2021, tax losses carried forward amounted to a total of € 489.4 million (previous year: € 571.7 million). This results in a deferred tax asset of € 117.9 million (previous year: € 145.4 million). Deferred tax assets were recognized for these items in the amount at which the associated tax advantages are likely to be realized in the form of future profits for income tax purposes. Accordingly, deferred tax assets for tax loss carryforwards in the amount of € 43.8 million (previous year: € 41.9 million) were not recognized; of these, € 42.2 million (previous year: € 39.9 million) cannot expire, of which, however, € 11.5 million (previous year: € 11.3 million) will never be usable due to a lack of future profits. The remaining unrecognized deferred tax assets of € 1.6 million (previous year: € 2.1 million) will expire within the next six years.
In addition, no deferred taxes were recognized for deductible temporary differences amounting to € 7.2 million (previous year: € 6.3 million) because their realization was not expected as of the balance sheet date.
Deferred tax liabilities for withholding taxes from possible dividends on retained earnings of subsidiaries that serve to cover the financing needs of the respective company were not accumulated, since it is most likely that such temporary differences will not be cleared in the near future.
Deferred tax assets and liabilities are netted if they relate to a taxable entity and can in fact be netted. Accordingly, they are shown in the balance sheet as follows:
|
|
2021 |
2020 |
|
Deferred tax assets |
279.9 |
277.5 |
|
Deferred tax liabilities |
48.8 |
40.6 |
|
Deferred tax assets, net |
231.1 |
236.9 |
|
|
|
|
The changes in deferred tax assets (net) were as follows:
|
|
2021 |
2020 |
|
Deferred tax assets, net as of January 1 |
236.9 |
184.8 |
|
Recognition in the income statement |
-2.7 |
56.7 |
|
Adjustment
related to remeasurements of the net defined benefit liability, |
0.3 |
1.1 |
|
Adjustment
related to the market value of currency hedging contracts, |
|
|
|
-4.7 |
0.1 |
|
|
-4.5 |
5.1 |
|
|
Exchange rate differences |
5.8 |
-11.0 |
|
Deferred tax assets, net as of December 31 |
231.1 |
236.9 |
|
|
|
|
Property, plant and equipment at their carrying amounts consist of:
|
|
2021 |
2020 |
|
Land and buildings, including buildings on third-party land |
121.6 |
131.9 |
|
Technical equipment and machinery |
125.7 |
8.4 |
|
Other equipment, factory and office equipment |
183.0 |
154.6 |
|
Assets under construction |
42.1 |
112.0 |
|
Total |
472.4 |
406.9 |
|
|
|
|
The carrying amount of property, plant and equipment is derived from the acquisition costs. Accumulated depreciation of property, plant and equipment amounted to € 457.6 million (previous year: € 411.4 million).
The changes in property, plant and equipment in the financial year 2021 are shown in “Changes in Fixed Assets” in Appendix 1 to the notes of the consolidated financial statements.
The Group rents and leases offices, warehouses, facilities, technical equipment and machinery, motor vehicles and sales rooms for its own retail business. As a rule, the lease agreements have a term of between one and fifteen years. Some agreements include options to renew and price adjustment clauses.
The carrying amounts for right-of-use assets recognized on the balance sheet relate to the following asset classes:
|
|
2021 |
2020 |
|
Land and buildings – Retail stores |
382.9 |
355.2 |
|
Land and buildings – Warehouses & Offices |
505.8 |
464.3 |
|
Others (Technical equipment & machines and motor vehicles) |
51.9 |
58.1 |
|
Total |
940.5 |
877.6 |
|
|
|
|
The changes in right-of-use assets in the financial year 2021 are shown in “Changes in Fixed Assets” in Appendix 1 to the notes to the consolidated financial statements.
The following lease liabilities result:
|
|
2021 |
2020 |
|
Current lease liabilities |
172.3 |
156.5 |
|
Non-current lease liabilities |
851.0 |
775.2 |
|
Total |
1,023.4 |
931.7 |
|
|
|
|
The amounts recognized in the income statement are as follows:
|
|
2021 |
2020 |
|
Depreciation
of right-of-use assets (incl. impairment losses) |
194.7 |
186.4 |
|
Profit (-)/loss (+) from disposal/revaluation |
-1.0 |
0.0 |
|
Interest expense (included in financial expenses) |
31.5 |
29.3 |
|
Short-term leases (included in operating expenses) |
6.3 |
5.6 |
|
Leases of low-value assets (included in operating expenses) |
0.7 |
0.6 |
|
Variable lease payments (included in operating expenses) |
24.5 |
11.5 |
|
Total |
256.7 |
233.4 |
|
|
|
|
Variable lease payments are incurred in connection with the Group’s own retail stores. These are based on the sales revenue amount and are therefore dependent on the overall economic development.
As a result of the COVID-19 pandemic, PUMA was exempted – by agreement with the lessors – from rent payments of € 7.1 million (previous year: € 13.7 million), which were recognized as variable lease payments in the income statement.
Due to reduced earnings prospects, impairment expenses totaling € 18.5 million were incurred in the financial year 2021 (previous year: € 16.1 million) relating to right-of-use assets in connection with the Group’s own retail stores. There were no impairments to the other categories of right-of-use assets.
Total cash outflows from lease
liabilities in 2021 amounted to € 192.4 million (previous year:
€ 164.2 million).
In 2021, PUMA entered into lease agreements that had not yet commenced by year-end. As a result, no lease liabilities and corresponding right-of-use assets had been recognized as of December 31, 2021. Future lease payments in connection with these agreements amount to € 2.4 million (previous year: € 4.7 million) for the next year, € 14.3 million for years two to five (previous year: € 24.1 million) and € 6.4 million for the subsequent period (previous year: € 9.0 million). The lease terms for these are up to 10 years.
The maturity analysis of lease liabilities is as follows:
|
|
2021 |
2020 |
|
Residual term of: |
|
|
|
1 to 2 years |
197.3 |
180.5 |
|
2 to 5 years |
545.7 |
463.3 |
|
more than 5 years |
432.4 |
435.6 |
|
Total (undiscounted) |
1,175.4 |
1,079.4 |
|
Interests |
-152.0 |
-147.7 |
|
Total |
1,023.4 |
931.7 |
|
|
|
|
Intangible Assets mainly include goodwill, intangible assets with indefinite useful lives (e.g. brands), assets associated with the Company’s own retail activities and software licenses.
Goodwill and intangible assets with indefinite useful lives are not amortized according to schedule. Impairment tests with regard to goodwill were performed in the past financial year using the discounted cash flow method. The data from the three-year plan for the respective cash-generating unit or group of cash-generating units was used as a basis for this. Planning on the level of the cash-generating units was thereby derived from the PUMA Group’s three-year plan. The central assumptions applied in Group-level planning are that the global economy will gradually return to normal in 2022 due to the availability of vaccines against COVID-19 and the progress made with immunizing large parts of the population in PUMA’s key markets. On this basis, and assuming that COVID-19 will not have a long-term negative impact on the global economy, further sales growth and a further improved EBIT margin are expected in subsequent financial years. Alongside the normalization of business activities, planned sales growth is based on the good future growth prospects in the sporting goods industry and on gains of market shares by PUMA. This is to be achieved, in particular, via the continued consistent implementation of the Forever Faster corporate strategy and the increase in PUMA’s brand heat. The improvement in EBIT margin in the planning period is the result of a slight increase in gross profit margin due to, for example, a higher share of own retail sales as a result of above-average growth of the e-commerce distribution channel. Furthermore, the slightly weaker percentage increase of other operating income and expenses compared to sales growth is also expected to contribute to the improvement of the EBIT margin; for example, the operating requirements for planned sales growth over the coming years have essentially been met, meaning that economies of scale can be realized. The planning of investments and working capital is based on historical experience and is carried out in accordance with strategic objectives. The future tax payments are based on current tax rates. For periods beyond the three-year plan, an annual growth rate is determined and used to forecast future cash flows beyond the three-year period. The assumed growth rate is based on long-term expectations on inflation rate and may not exceed the long-term average growth rates for the business area in which the respective cash-generating unit, or group of cash-generating units, operates.
The recoverable amount for the respective cash-generating unit or group of cash-generating units was determined on the basis of the value-in-use. This did not result in impairment losses for any cash-generating units.
In connection with the Golf business unit (CPG – Cobra PUMA Golf), the Cobra brand exists as an intangible asset with an indefinite useful life amounting to € 125.6 million (previous year: € 115.9 million). The carrying amount of the Cobra brand is significant in comparison to the overall carrying amount of the intangible assets with an indefinite useful life. It was assigned to the North America business segment, where the headquarters of Cobra PUMA Golf is located. The recoverable amount of the Cobra brand was determined using the relief-from-royalty method (level 3 – see explanation in chapter 14). A discount rate of 7.4% p.a. (previous year: 6.4% p.a.), a royalty rate of 8.0% (previous year: 8.0%) and a 1.7% growth rate (previous year: 1.7%) was used.
If indications of a value impairment of a self-used trademark should arise, the trademark is not only valued individually using the relief-from-royalty method, but the recoverable amount of the group of cash-generating units to which the trademark is to be allocated is also determined. In 2021, there were no indications of an impairment.
In the financial year, development costs
in connection with Cobra brand golf clubs amounting to
€ 1.7 million (previous year: € 1.8 million) were capitalized.
Development costs are allocated to the item Other Intangible Assets in “Changes
in Fixed Assets”. Current amortization of development costs amounted to € 1.1 million
in the financial year (previous year: € 2.3 million).
The changes in intangible assets in the financial year are shown in “Changes in Fixed Assets” of Appendix 1 to the notes to the consolidated financial statements. The item other intangible assets includes advance payments in the amount of € 5.7 million (previous year: € 22.8 million).
The current amortization of intangible assets in the amount of € 27.8 million (previous year: € 24.4 million) is included in the other operating expenses. Of this, € 5.8 million relate to sales and distribution expenses (previous year: € 3.8 million), € 0.1 million to expenses for product management/ merchandising (previous year: € 0.1 million), € 1.1 million to development expenses (previous year: € 2.3 million), and € 20.8 million to administrative and general expenses (previous year: € 18.3 million). There were no impairment expenses exceeding current depreciation (previous year: € 1.9 million).
Goodwill is allocated to the Group’s identifiable groups of cash-generating units (CGUs) according to the countries where the activities are carried out. Summarized by regions, goodwill is allocated as follows:
|
|
2021 |
2020 |
|
1.7 |
1.6 |
|
|
7.3 |
6.8 |
|
|
Subtotal Europe |
9.0 |
8.4 |
|
9.9 |
9.1 |
|
|
1.9 |
1.8 |
|
|
Subtotal North America |
11.8 |
10.9 |
|
15.4 |
14.2 |
|
|
0.5 |
0.5 |
|
|
9.8 |
9.3 |
|
|
Subtotal Latin America |
25.7 |
24.1 |
|
2.5 |
2.5 |
|
|
14.3 |
13.0 |
|
|
Subtotal Greater China |
16.8 |
15.5 |
|
42.0 |
43.3 |
|
|
Subtotal Asia/ Pacific (without Greater China) |
42.0 |
43.3 |
|
stichd |
139.4 |
139.4 |
|
Total |
244.7 |
241.5 |
|
|
|
|
Assumptions used in conducting the impairment tests in 2021:
|
|
Tax rate |
WACC before tax (range) |
WACC after tax |
||||
|
Europe |
19.0% |
8.9%-9-0% |
7.6% |
||||
|
North America* |
26.7% |
9.4% |
7.3% |
||||
|
Latin America |
27.0%-30.0% |
11.5%-40.9% |
8.8%-54.4% |
||||
|
Greater China |
20.0%-25.0% |
7.8%-10.3% |
6.4%-8.1% |
||||
|
Asia/ Pacific (without Greater China)* |
31.8% |
9.8% |
7.1% |
||||
|
stichd* |
25.0% |
9.0% |
7.1% |
||||
| * The information for North America, Asia/ Pacific (without Greater China) and stichd relates in each case to only one cash-generating unit (CGU) | |||||||
The tax rates used for the impairment test correspond to the actual tax rates in the respective countries. The weighted average cost of capital (WACC) was derived on the basis of the weighted average cost of total capital, taking into account a standard market capital structure (ratio of debt to equity) and including the most important listed competitors (peer group).
In addition, a growth rate of 1.7% (previous year: 1.7%) is generally assumed. A growth rate of less than 1.7% (previous year: less than 1.7%) was applied only in justified exceptional cases, where the long-term expectations on inflation rate for the country in which the cash-generating unit operates were lower than the assumed growth rate; this applies, in particular, to Japan and Taiwan.
The cash-generating unit stichd includes goodwill of € 139.4 million (previous year: € 139.4 million), which is significant in comparison to the overall carrying amount of goodwill. The recoverable amount was determined by a value-in-use calculation with a discount rate of 7.1% p.a. (previous year: 6.1% p.a.) and a growth rate of 1.7% (previous year: 1.7%).
Sensitivity analyses with regard to the impairment tests carried out as of the balance sheet date show that neither an increase in discount rates by one percentage point, respectively, nor a reduction in growth rates by one percentage point, respectively, results in any indication of impairment. Due to the ongoing increased uncertainty as a result of the COVID-19 pandemic, in the financial year 2021 additional sensitivity analyses were also carried out with regard to the impairment tests. Alongside an increase in discount rates by one percentage point, respectively, and a simultaneous reduction in growth rates by one percentage point, respectively, these analyses also assume a reduction in operating result (EBIT) of 10% respectively in the underlying three-year plan. This resulted in an overall indication of impairment in the amount of € 8.1 million (previous year: € 1.6 million).
The following table contains the assumptions for the performance of the impairment test in the previous year:
|
|
Tax rate |
WACC before tax (range) |
WACC after tax |
||||
|
Europe |
19.0% |
8.0%-8.1% |
6.8% |
||||
|
EEMEA* |
28.0% |
16.3% |
12.4% |
||||
|
North America* |
26.3% |
8.0% |
6.3% |
||||
|
Latin America |
27.0%-30.0% |
10.7%-51.3% |
8.2%-60.3% |
||||
|
Greater China |
20.0%-25.0% |
7.0%-9.5% |
5.7%-7.5% |
||||
|
Asia/ Pacific (without Greater China)* |
31.8% |
8.7% |
6.3% |
||||
|
stichd* |
25.0% |
7.6% |
6.1% |
||||
| * The information for EEMEA, North America, Asia/ Pacific (without Greater China) and stichd relates in each case to only one cash-generating unit (CGU) | |||||||
Other non-current financial and non-financial assets consist of:
|
|
2021 |
2020 |
|
Investments |
25.2 |
25.3 |
|
Fair value of derivative financial instruments |
6.8 |
2.5 |
|
Other financial assets |
32.6 |
30.9 |
|
Total of other non-current financial assets |
64.6 |
58.8 |
|
Other non-current non-financial assets |
9.1 |
6.8 |
|
Other non-current assets, total |
73.7 |
65.6 |
|
|
|
|
The investments relate to the 5.32% shareholding in Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (BVB) with registered office in Dortmund, Germany.
The other financial assets mainly include rental deposits of € 30.5 million (previous year: € 26.8 million). The other non-current non-financial assets mainly include accruals and deferrals in connection with promotional and advertising agreements.
The residual terms of liabilities are as follows:
|
|
2021 |
2020 |
||||||||
|
|
|
Residual term of |
|
Residual term of |
|
|||||
|
|
Total |
up to 1 year |
1 to 5 years |
over 5 years |
Total |
up to 1 year |
1 to 5 years |
over 5 years |
||
|
Financial liabilities |
380.0 |
68.5 |
311.5 |
|
266.4 |
121.4 |
145.0 |
|
||
|
Trade payables |
1,176.4 |
1,176.4 |
|
|
941.5 |
941.5 |
|
|
||
|
Other liabilities* |
|
|
|
|
|
|
|
|
||
|
Liabilities from other taxes |
54.0 |
54.0 |
|
|
50.5 |
50.5 |
|
|
||
|
Liabilities relating to social security |
8.5 |
8.5 |
|
|
9.9 |
9.9 |
|
|
||
|
Payables to employees |
127.4 |
127.4 |
|
|
79.0 |
79.0 |
|
|
||
|
Refund liabilities |
351.2 |
351.2 |
|
|
227.4 |
227.4 |
|
|
||
|
Liabilities from derivative financial instruments |
44.5 |
42.4 |
2.1 |
|
135.2 |
126.9 |
8.3 |
|
||
|
Other liabilities |
31.5 |
29.9 |
1.1 |
0.5 |
36.0 |
35.1 |
0.8 |
|
||
|
Total |
2,173.7 |
1,858.4 |
314.8 |
0.5 |
1,745.9 |
1,591.8 |
154.1 |
|
||
| * The maturity analysis on lease liabilities is presented in chapter 10. | ||||||||||
PUMA has confirmed credit lines amounting to a total of € 1,322.0 million (previous year: € 1,639.1 million). The syndicated credit line of € 200.0 million from 11 commercial banks and the Kreditanstalt für Wiederaufbau (KfW) existing as of December 31, 2020, which was concluded as “bridge financing” against possible cash shortfalls due to the COVID-19 pandemic, was terminated on February 1, 2021. The termination took place because PUMA was already able to refinance itself in the 2020 financial year through a new promissory note loan (€ 250.0 million) with a term of 3 respectively 5 years and an increase in the syndicated credit facility previously amounting to € 350.0 million to a new € 800.0 million. Moreover, the first tranche of € 100.0 million from the promissory note issued in 2018, which matured in July 2021, was repaid.
No financial liabilities were utilized from credit lines granted only until further notice. Unutilized credit lines totaled € 942.0 million as of December 31, 2021, compared to € 1,372.7 million in the previous year.
The effective interest rate of the financial liabilities ranged between 0.0% and 0.9% (previous year: 0.1% to 14.8%).
The liabilities from refund obligations result from contracts with customers and include obligations from customer return rights as well as obligations linked to customer bonuses.
The table below shows the cash flows of the non-derivative financial liabilities and of the derivative financial instruments with a positive and negative fair value:
|
|
Carrying amount 2021 |
Cashflow 2022 |
Cashflow 2023 |
Cashflow 2024 et seq. |
|||
|
Interest |
Repayment |
Interest |
Repayment |
Interest |
Repayment |
||
|
Non-derivative financial liabilities |
|
|
|
|
|
|
|
|
Financial liabilities |
380.0 |
2.4 |
68.5 |
2.1 |
60.0 |
2.8 |
251.5 |
|
Trade payables |
1,176.4 |
|
1,176.4 |
|
|
|
|
|
Other liabilities |
22.5 |
|
22.1 |
|
0.2 |
|
0.2 |
|
Derivative financial liabilities and assets |
|
|
|
|
|
|
|
|
Cash-Inflow from derivative financial instruments |
|
|
3,730.6 |
|
674.1 |
|
|
|
Cash-Outflow from derivative financial instruments |
|
|
3,658.9 |
|
665.3 |
|
|
The following values were determined in the previous year:
|
|
Carrying amount 2020 |
Cashflow 2021 |
Cashflow 2022 |
Cashflow 2023 et seq. |
|||
|
Interest |
Repayment |
Interest |
Repayment |
Interest |
Repayment |
||
|
Non-derivative financial liabilities |
|
|
|
|
|
|
|
|
Financial liabilities |
266.4 |
0.8 |
121.4 |
0.7 |
|
1.6 |
145.0 |
|
Trade payables |
941.5 |
|
941.5 |
|
|
|
|
|
Other liabilities |
24.6 |
|
24.2 |
|
0.1 |
|
0.3 |
|
Derivative financial liabilities and assets |
|
|
|
|
|
|
|
|
Cash-Inflow from derivative financial instruments |
|
|
2,893.7 |
|
495.3 |
|
|
|
Cash-Outflow from derivative financial instruments |
|
|
2,999.4 |
|
502.0 |
|
|
|
|
Measurement categories under IFRS 9 |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
||
|
Assets |
|
|
|
|
|
||
|
Cash and cash equivalents |
1) AC |
757.5 |
757.5 |
655.9 |
655.9 |
||
|
Trade receivables |
AC |
848.0 |
848.0 |
621.0 |
621.0 |
||
|
Other current financial assets |
AC |
30.2 |
30.2 |
29.3 |
29.3 |
||
|
Derivatives
with hedging relationship |
n.a. |
127.2 |
127.2 |
25.7 |
25.7 |
||
|
Derivatives
without hedging relationship |
2) FVPL |
2.9 |
2.9 |
0.4 |
0.4 |
||
|
Other non-current financial assets |
AC |
32.6 |
32.6 |
30.9 |
30.9 |
||
|
Investments |
3) FVOCI |
25.2 |
25.2 |
25.3 |
25.3 |
||
|
Liabilities |
|
|
|
|
|
||
|
Financial liabilities (current and non-current) |
AC |
380.0 |
380.0 |
266.4 |
266.4 |
||
|
Trade payables |
AC |
1,176.4 |
1,176.4 |
941.5 |
941.5 |
||
|
Other financial liabilities (current and non-current) |
AC |
22.5 |
22.5 |
24.6 |
24.6 |
||
|
Derivatives
with hedging relationship |
n.a. |
39.1 |
39.1 |
134.9 |
134.9 |
||
|
Derivatives
without hedging relationship |
2) FVPL |
5.4 |
5.4 |
0.3 |
0.3 |
||
|
Total financial assets at amortised cost |
|
1,668.3 |
1,668.3 |
1,337.1 |
1,337.1 |
||
|
Total financial liabilities at amortised cost |
|
1,579.0 |
1,579.0 |
1,232.5 |
1,232.5 |
||
|
Total financial assets at FVOCI |
|
25.2 |
25.2 |
25.3 |
25.3 |
||
|
1) AC = at amortised cost 3) FVPL = fair value through PL 2) FVOCI = fair value through OCI |
|||||||
Financial instruments that are measured at fair value in the balance sheet were determined using the following hierarchy:
Level 1: Use of prices quoted on active markets for identical assets or liabilities.
Level 2: Use of input factors that do not involve the quoted prices stated under Level 1, but can be observed for the asset or liability either directly (i.e., as price) or indirectly (i.e., derivation of prices).
Level 3: Use of factors for the valuation of the asset or liability that are based on non-observable market data.
The fair value of the investments held for strategic reasons only refers to equity instruments of the category “fair value through OCI” (FVOCI) and is determined on the basis of level 1. The market values of derivative assets or liabilities were determined on the basis of level 2.
Cash and cash equivalents, trade receivables and other receivables have short maturities. Accordingly, as of the reporting date, the carrying amount approximates fair value. Receivables are stated at nominal value, taking into account deductions for default risk.
The fair values of other financial assets correspond to their carrying amount as the interest calculation occurs at the prevailing market interest rates on the balance sheet date. Other (current and non-current) financial assets include € 36.7 million (previous year: € 34.2 million) that were pledged as rental deposits at usual market rates.
In December 2021, due to the good liquidity situation, PUMA decided to repay € 68.5 million in variable-interest promissory note loan tranches early on the next interest-rate assessment date of January 12, 2022, and these are therefore reported as current financing instruments as of the reporting date. As of the reporting date, the carrying amount approximates fair value. The non-current bank liabilities consist of fixed-interest and variable-interest loans. The carrying amount represents a reasonable approximation of their fair value as the interest rate differential is not significant at the reporting date.
Trade payables have short residual maturities; their carrying amounts therefore approximate fair value.
The remaining financial liabilities have short residual maturities; the recognized amounts therefore approximate fair value.
The fair values of derivative financial instruments at the balance sheet date are determined on the basis of current market parameters, i.e., reference prices observable on the market, taking into account forward premiums and discounts. The discounted result of the comparison of the forward price on the reporting date with the forward price on the valuation date is included in the measurement. The fair values are also checked for the counterparty’s non-performance risk. In doing this, PUMA calculates credit value adjustments (CVA) or debt value adjustments (DVA) on the basis of an up/down method, taking current market information into account. No material deviations were found, so that no adjustments were made to the fair value determined.
Net result by measurement categories:
|
|
2021 |
2020 |
|
Financial assets at amortised cost |
-3.9 |
-21.0 |
|
Financial liabilities at amortised cost |
-6.5 |
-8.5 |
|
Derivatives without hedging relationship |
-4.0 |
1.6 |
|
Financial assets at FVOCI |
-6.2 |
-14.7 |
|
Total |
-20.5 |
-42.6 |
|
|
|
|
The net result was determined by taking into account interest income and expense, currency exchange effects, changes in provisions for risks as well as gains and losses from sales.
General administrative expenses include changes in risk provisions for receivables.
Pension provisions result from employees’ claims and, if applicable, their survivors for benefits, which are based on the statutory or contractual regulations applicable in the respective country, in the event of invalidity, death or when a certain retirement age has been reached. Pension commitments in the PUMA Group include both benefit- and contribution-based pension commitments and include both obligations from current pensions and rights to pensions payable in the future. The pension entitlements are financed by both provisions and funds.
The risks associated with the pension commitments mainly concern the usual risks of benefit-based pension plans in relation to possible changes in the discount rate and, to a minor degree, inflation trends and recipient longevity. In order to limit the risks of changed capital market conditions and demographic developments, plans with the maximum obligations were agreed or insured a few years ago in Germany and the UK for new hires. The specific risk of obligations based on salary is low within the PUMA Group. The introduction of an annual cap for pensionable salary in the UK plan in 2016 covers this risk for the highest obligations. The UK plan is therefore classified as a non-salary obligation.
The following values were determined in the previous year:
|
|
Germany |
UK |
Other Companies |
PUMA Group |
|
Present Value of Pension Claims 12/31/2020 |
|
|
|
|
|
Salary-based obligations |
|
|
|
|
|
0.0 |
0.0 |
10.2 |
10.2 |
|
|
0.0 |
0.0 |
10.0 |
10.0 |
|
|
Non-salary-based obligations |
|
|
|
|
|
35.0 |
49.0 |
0.0 |
84.0 |
|
|
7.5 |
0.0 |
0.0 |
7.5 |
|
|
Total |
42.5 |
49.0 |
20.2 |
111.7 |
|
|
|
|
|
|
The main pension arrangements are described below:
The general pension scheme of
PUMA SE generally provides for pension payments to a maximum amount of € 127.82
per month and per eligible employee. It was closed for new members beginning in
1996. In addition, PUMA SE provides individual commitments (fixed sums in
different amounts) as well as contribution-based individual commitments (in
part from salary conversion). The contribution-based commitments are insured
plans. There are no statutory minimum funding requirements. The scope of
obligation for domestic pension claims amounts to € 51.2 million at the
end of 2021 (previous year: € 42.5 million) and thus comprises 42.0% of the total obligation. The fair
value of the plan assets relative to domestic obligations amounts to € 40.7 million.
The corresponding pension provision amounts to
€ 10.5 million.
The defined benefit plan in the United Kingdom has not been available to new hires since 2006. This defined benefit plan includes salary and length of service-based commitments to provide old age, invalidity and surviving dependents’ retirement benefits. In 2016, a growth cap of 1% p.a. was introduced on the pensionable salary. Partial capitalization of the old-age pension is permitted. There are statutory minimum funding requirements. The obligations regarding pension claims under the defined benefit plan in the UK amount to € 51.4 million at the end of 2021 (previous year: € 49.0 million) and thus accounts for 42.0% of the total obligation. The obligation is covered by assets amounting to € 45.5 million. The provision amounts to € 5.9 million.
The changes in the present value of pension claims are as follows:
|
|
2021 |
2020 |
|
Present Value of Pension Claims January 1 |
111.7 |
98.7 |
|
Cost of the pension claims earned in the reporting year |
2.6 |
2.7 |
|
Past service costs |
0.0 |
0.0 |
|
(Profits) and losses from settlements |
0.0 |
0.0 |
|
Interest expense on pension claims |
1.4 |
1.5 |
|
Employee contributions |
8.3 |
6.7 |
|
Benefits paid |
-3.3 |
-3.4 |
|
Effects from transfers |
0.1 |
0.9 |
|
Actuarial gains (-) and losses |
-2.0 |
7.4 |
|
Currency exchange effects |
3.5 |
-2.8 |
|
Present Value of Pension Claims December 31 |
122.3 |
111.7 |
|
|
|
|
The changes in the plan assets are as follows:
|
|
2021 |
2020 |
|
Plan Assets January 1 |
73.5 |
64.6 |
|
Interest income on plan assets |
0.9 |
1.0 |
|
Actuarial gains and losses (-) |
1.9 |
3.0 |
|
Employer contributions |
5.6 |
1.9 |
|
Employee contributions |
8.3 |
6.7 |
|
Benefits paid |
-2.3 |
-1.6 |
|
Effects from transfers |
0.0 |
0.0 |
|
Currency exchange effects |
2.8 |
-2.2 |
|
Plan Assets December 31 |
90.7 |
73.5 |
|
|
|
|
The pension provision for the Group is derived as follows:
|
|
2021 |
2020 |
|
Present value of pension claims from benefit plans |
122.3 |
111.7 |
|
Fair value of plan assets |
-90.7 |
-73.5 |
|
Financing Status |
31.6 |
38.2 |
|
Amounts not recorded due to the maximum limit applicable to assets |
0.0 |
0.0 |
|
Pension Provision December 31 |
31.6 |
38.2 |
|
of which assets |
0.3 |
0.0 |
|
of which liabilities |
31.9 |
38.2 |
|
|
|
|
In 2021, benefits paid amounted to € 3.3 million (previous year: € 3.4 million). Contributions in 2022 are expected to amount to € 2.5 million. Of this, € 0.9 million is expected to be paid directly by the employer. Employer contributions to external plan assets amounted to € 5.6 million in 2021 (previous year: € 1.9 million). Employer contributions in 2022 are expected to amount to € 0.6 million.
The changes in pension provisions are as follows:
|
|
2021 |
2020 |
|
Pension Provision January 1 |
38.2 |
34.1 |
|
Pension expense |
3.1 |
3.2 |
|
Actuarial gains (-) and losses recorded in Other Comprehensive Income |
-3.9 |
4.4 |
|
Employer contributions |
-5.6 |
-1.9 |
|
Direct pension payments made by the employer |
-1.0 |
-1.8 |
|
Transfer values |
0.1 |
0.9 |
|
Currency exchange differences |
0.7 |
-0.7 |
|
Pension Provision December 31 |
31.6 |
38.2 |
|
of which assets |
0.3 |
0.0 |
|
of which liabilities |
31.9 |
38.2 |
The expenses in the 2021 financial year are structured as follows:
|
|
2021 |
2020 |
|
Cost of the pension claims earned in the reporting year |
2.6 |
2.7 |
|
Past service costs |
0.0 |
0.0 |
|
Income (-) and expenses from plan settlements |
0.0 |
0.0 |
|
Interest expense on pension claims |
1.4 |
1.5 |
|
Interest income on plan assets |
-0.9 |
-1.0 |
|
Administration costs |
0.0 |
0.0 |
|
Expenses for Defined Benefit Plans |
3.1 |
3.2 |
|
2.6 |
2.7 |
|
|
0.5 |
0.5 |
|
|
|
|
|
In addition to the defined benefit pension plans, PUMA also makes contributions to defined contribution plans. Payments for the financial year 2021 amounted to € 15.0 million (previous year: € 13.6 million).
Actuarial gains and losses recorded in Other Comprehensive Income:
|
|
2021 |
2020 |
|
Revaluation of Pension Commitments |
-2.0 |
7.4 |
|
0.5 |
0.2 |
|
|
-2.7 |
6.8 |
|
|
0.2 |
0.4 |
|
|
Revaluation of Plan Assets |
-1.9 |
-3.0 |
|
Amounts not recorded due to the maximum limit applicable to assets |
0.0 |
0.0 |
|
Adjustment of administration costs |
0.0 |
0.0 |
|
Total Revaluation Amounts recorded directly in Other Comprehensive Income |
-3.9 |
4.4 |
|
|
|
|
Plan assets investment classes:
|
|
2021 |
2020 |
|
Cash and cash equivalents |
6.6 |
3.0 |
|
Equity instruments |
0.8 |
0.8 |
|
Bonds |
7.1 |
7.3 |
|
Investment funds |
14.0 |
12.4 |
|
Derivatives |
9.2 |
8.0 |
|
Real estate |
4.8 |
3.7 |
|
Insurance |
40.8 |
31.6 |
|
Others |
7.4 |
6.5 |
|
Total Plan Assets |
90.7 |
73.5 |
|
|
|
|
Of which investment classes with a quoted market price:
|
|
2021 |
2020 |
|
Cash and cash equivalents |
6.6 |
3.2 |
|
Equity instruments |
0.8 |
0.8 |
|
Bonds |
7.1 |
7.3 |
|
Investment funds |
14.0 |
12.4 |
|
Derivatives |
9.2 |
8.0 |
|
Real estate |
4.3 |
3.1 |
|
Insurance |
0.0 |
0.0 |
|
Others |
7.3 |
6.4 |
|
Plan Assets with a quoted Market Price |
49.3 |
41.2 |
|
|
|
|
Plan assets still do not include the Group’s own financial instruments or real estate used by Group companies.
The plan assets are used exclusively to fulfill defined pension commitments. Legal requirements exist in some countries for the type and amount of financial resources that can be chosen; in other countries (for example Germany) they can be chosen freely. In the UK, a board of trustees made up of company representatives and employees is in charge of asset management. Its investment strategy is aimed at long-term profits and tolerable volatility. It was revised once again in 2020 and the risk profile was reduced.
The following assumptions were used to determine pension obligations and pension expenses:
|
|
2021 |
2020 |
|
Discount rate |
1.62% |
1.28% |
|
Future pension increases |
2.28% |
2.08% |
|
Future salary increases |
1.66% |
1.65% |
|
|
|
|
The indicated values are weighted average values. A standard interest rate of 1.10% was applied for the eurozone (previous year: 1.00%).
The 2018 G Heubeck guideline tables were used as mortality tables for Germany. For the UK, the mortality was assumed based on basic table series S2 taking into account life expectancy projections in accordance with CMI2019 with a long-term trend of 1%.
The following overview shows how the present value of pension claims from benefit plans would have been affected by changes to significant actuarial assumptions.
|
|
2021 |
2020 |
|
Effect on present value of pension claims if |
|
|
|
the discount rate were 50 basis points higher |
-7.1 |
-7.3 |
|
the discount rate were 50 basis points lower |
8.1 |
8.4 |
|
|
|
|
Salary and pension trends have only a negligible effect on the present value of pension claims due to the structure of the benefit plans.
The weighted average duration of pension commitments is around 16 years (previous year: around 18 years).
The warranty provision is determined on the basis of the historical value of sales generated during the past six months. It is expected that the majority of these expenses will fall due within the first six months of the next financial year. Purchasing risks relate primarily to materials and molds that are required for the manufacturing of shoes.
Other provisions comprise in particular provisions in relation with dismantling obligations and other risks.
Current provisions are expected to be paid out in the following year, non-current provisions are expected to be paid out in a period of up to ten years. There are no significant compounding effects. The recognition and measurement of provisions is based on past experience from similar transactions. All events until the preparation of the consolidated financial statements are taken into account here.
The subscribed capital corresponds to the subscribed capital of PUMA SE.
As of the balance sheet date, the subscribed capital in accordance with the Articles of Association corresponds to € 150,824,640.00 and is divided into 150,824,640 no-par value voting shares. This corresponds to a proportional amount of € 1.00 per share.
Changes in the circulating shares:
|
|
2021 |
2020 |
|
Circulating shares as of January 1, share |
149,583,859 |
149,547,801 |
|
Issue of Treasury Stock |
21,741 |
36,058 |
|
Circulating shares as of December 31, share |
149,605,600 |
149,583,859 |
|
|
|
|
The issue of treasury stock relates to compensation payments in connection with promotional and advertising agreements.
The capital reserve includes the premium from issuing shares, as well as amounts from the grant, conversion and expiration of share options.
The revenue reserves incl. retained earnings include the net income of the financial year as well as the income achieved in the past by the companies included in the consolidated financial statements to the extent that it was not distributed.
The equity item for currency conversion serves to record the foreign exchange differences from the conversion of the financial statements of subsidiaries with non-euro accounting.
The “cash flow hedges” item includes the market valuation of derivative financial instruments. The item amounting to € 78.1 million (previous year: € -87.6 million) is offset by deferred taxes of € -4.1 million (previous year: € 5.1 million).
The resolution adopted by the Annual General Meeting on May 7, 2020 authorized the Company to purchase treasury shares up to a value of 10% of the share capital until May 6, 2025. By resolution of the Annual General Meeting of May 5, 2021 the Supervisory Board was authorized to issue the acquired shares to the members of the Management Board of the Company, also excluding the shareholders' subscription rights. If purchased through the stock exchange, the purchase price per share may not exceed 10% or fall below 20% of the closing price for the Company’s shares with the same attributes in the XETRA trading system (or a comparable successor system) during the last three trading days prior to the date of purchase.
The Company did not make use of the authorization to purchase treasury stock during the reporting period.
As of the balance sheet date, the Company holds a total of 1,219,040 PUMA shares in its own portfolio, which corresponds to 0.81% of the subscribed capital.
As of December 31, 2021, the
Company’s Articles of Association provide for authorized capital totaling
€ 30,000,000.00:
Pursuant to Section 4.2. of the Articles of Association, the Management Board is authorized with the consent of the Supervisory Board to increase the Company’s share capital by May 4, 2026 by up to € 30,000,000.00 (Authorized Capital 2021) by issuing new no-par value bearer shares against cash and/or non-cash contributions on one or more occasions. In case of capital increases against contributions in cash, the new shares may be acquired by one or several banks, designated by the Management Board, subject to the obligation to offer them to the shareholders for subscription (indirect subscription right). The shareholders shall generally be entitled to subscription rights. However, the Management Board is authorized with the consent of the Supervisory Board to exclude shareholders’ subscription rights in whole or in part in the cases specified in Section 4.2. of the Articles of Association.
The Management Board of PUMA SE did not make use of the existing authorized capital in the current reporting period.
By resolution of the Annual General Meeting of April 12, 2018, the Management Board was authorized until April 11, 2023, with the consent of the Supervisory Board, through one or more issues, altogether or in parts and in various tranches at the same time, to issue bearer or registered options and/or convertible bonds, profit-sharing rights or participation bonds or a combination of these instruments with or without a term limitation in a total nominal amount of up to € 1,000,000,000.00.
In this connection, the share capital was increased conditionally by up to € 30,164,920.00 by the issue of up to 30,164,920 new units of registered stock (Conditional Capital 2018). The conditional capital increase will be performed only insofar as use is made of options or conversion rights or a conversion or option obligation is fulfilled or insofar as deliveries are made and if other forms of fulfillment are not used for servicing.
No use has been made of the authorization to date.
The amounts eligible for distribution relate to the retained earnings of PUMA SE, which is determined in accordance with German Commercial Law.
The Management Board and the Supervisory Board will propose to the Annual General Meeting that a dividend of € 0.72 per circulating share, or a total of € 107.7 million (with respect to the circulating shares as of December 31, 2021), be distributed to the shareholders from the retained earnings of PUMA SE for the financial year 2021.
Proposed appropriation of the retained earnings of PUMA SE:
|
|
2021 |
2020 |
|
Retained earnings of PUMA SE as of December 31, € million |
490.1 |
390.4 |
|
Retained earnings available for distribution, € million |
490.1 |
390.4 |
|
Dividend per share, € |
0.72 |
0.16 |
|
Number of circulating shares* |
149,605,600 |
149,583,859 |
|
Total dividend*, € million |
107.7 |
23.9 |
|
Carried forward to the new accounting period*, € million |
382.4 |
366.5 |
|
|
|
|
* Previous year's values adjusted to the outcome of the Annual General Meeting
This item comprises non-controlling interests. The composition is shown in chapter 29.
The Group’s objective is to retain a strong equity base in order to maintain both investor and market confidence and to strengthen future business performance.
Capital management relates to the consolidated equity of PUMA. This is shown in the consolidated balance sheet as well as the reconciliation statement concerning “Changes in Equity”.
In order to bind the management to the company by a long-term incentive, virtual shares with cash settlement and other long-term incentive programs are used at PUMA.
The current programs are described below:
Monetary units were granted on an annual basis beginning in 2013 as part of a management incentive program. Monetary units are based on the PUMA share performance. Each of these monetary units entitles the holder to a cash payment at the end of the term. The entitled cash payment compares the performance using the average virtual appreciation rights of the last thirty trading days before the start of the year of issue with the virtual appreciation rights of the last thirty trading days before the exercise date. The maximum increase in value (cap) is limited to 300% of the amount allocated. Monetary units are subject to a vesting period of three years. After that, there is an exercise period of two years (starting with each quarterly publication date for a period of 30 days) which can be freely used by participants for the purposes of execution. The fundamental exercise condition after the vesting period is the existence of an active employment relationship with PUMA for all or part of the vesting period. Virtual shares are reduced on a “pro rata” basis in the event of withdrawal during the vesting period.
Virtual shares were granted on an annual basis beginning in 2021 as part of a management incentive program. The virtual shares are based on the PUMA share performance. Each of these virtual shares entitles the holder to a cash payment at the end of the term. However, the Supervisory Board reserves the right to make the payment in PUMA shares instead of cash. The entitled cash payment compares the performance using the average virtual appreciation rights of the last thirty trading days before the start of the year of issue with the virtual appreciation rights of the last thirty trading days before the exercise date and the total shareholder return (TSR) relative to the MDAX index. The PUMA and MDAX index TSRs are calculated using the arithmetic means of each of the TSR values on the 30 trading days before the start and end of the performance period. These mean values calculated for PUMA and for the MDAX index are then positioned in relation to each other in order to calculate the percentage TSR performance over the four-year performance period of each tranche. The difference in percentage points between the PUMA TSR and the MDAX index TSR is then calculated (= TSR outperformance in percentage points). The maximum increase in value (cap) is limited to 300% of the amount allocated. Virtual shares are subject to a vesting period of four years. They are generally paid out within the first quarter of the fifth year after their issue. The fundamental exercise condition after the vesting period is the existence of an active employment relationship with PUMA for all or part of the vesting period. Virtual shares are reduced on a “pro rata” basis in the event of withdrawal during the vesting period.
In the financial year 2021, an expense of € 8.7 million was recorded for this purpose on the basis of the employment contract commitments to the Management Board members.
|
Plan |
MUP |
MUP |
MUP |
MUP |
PSP |
|
|
Issue date |
1/1/2018 |
1/1/2019 |
1/1/2020 |
1/1/2021 |
1/1/2021 |
|
|
Term |
5 |
5 |
5 |
5 |
4.25 |
Years |
|
Vesting period |
3 |
3 |
3 |
3 |
4 |
Years |
|
Base price PUMA share at issue |
37.10 |
44.40 |
67.69 |
86.23 |
86.23 |
EUR/share |
|
Reference value PUMA-share at the end of the financial year |
106.93 |
106.93 |
71.29 |
35.64 |
26.73 |
EUR/share |
|
Participants in year of issue |
3 |
3 |
3 |
3 |
2 |
Persons |
|
Participants at the end of the financial year |
1 |
3 |
3 |
3 |
2 |
Persons |
|
Number of monetary units/virtual shares as of 1/1/2021 |
102,630 |
97,320 |
65,993 |
47,351 |
7,070 |
Shares |
|
Number of monetary units/virtual shares exercised in the FY |
-100,630 |
0 |
0 |
0 |
0 |
Shares |
|
Number of monetary units/virtual shares expired in the FY |
0 |
0 |
-3,250 |
0 |
0 |
Shares |
|
Final number of monetary units as of 12/31/2021 |
2,000 |
97,320 |
62,743 |
47,351 |
7,070 |
Shares |
|
|
|
|
|
|
|
|
In the financial year 2019, a stock split was performed with a ratio of 1:10. As a result of this, all past share values were divided by a factor of 10 and all monetary units were multiplied by a factor of 10.
This commitment consisting of share-based remuneration transactions with cash compensation is recorded as personnel provisions and remeasured at fair value on every balance sheet date, provided it has not been exercised yet. The expenses are recorded over the vesting period. Based on the prorated average share price of the last thirty trading days in 2021 and taking into account the intra-year exercise date in 2021, the provisions for this program amounted to € 17.0 million at the end of the financial year.
In 2018, the Long-Term Incentive Program (LTIP) “Game Changer 2.0” was launched. Participants in this program consist mainly of top executives reporting to the Management Board and individual key positions in the PUMA Group. The objective of this program is to retain these employees in the Company on a long-term basis and to allow them to share in the medium-term success of the Company.
The LTIP “Game Changer 2.0” consists of two plan parts, a Performance Cash Plan and a Performance Share Plan, each with a 50% share. The Performance Cash Plan gives a reward for PUMA’s financial performance, while the Performance Share Plan gives a reward for its performance in the capital market.
The performance period of the Performance Cash Plan is three years and is based on the average medium-term targets of the PUMA Group for EBIT, cash flow or working capital as a percentage of net sales, and net sales. Payment is made in cash and is limited to a maximum of 200% of the granted proportionate target amount (cap).
The Performance Share Plan uses virtual shares to manage the incentive. The term is up to five years, divided into a three-year performance period and a subsequent, two-year exercise period, in which the virtual shares are paid out in cash. A payout is only possible at the three exercise times (6, 12 or 18 months after the end of the performance period). The average share price of the last 30 trading days before the exercise date determines the value of a virtual share. The payout is limited to a maximum of 200% or 300% of the granted prorated target amount (cap) and is only performed if an exercise hurdle of +10% share-price appreciation was exceeded once during the performance period.
In 2018, the global “Game Changer 2.0 – 2021” program, as outlined above, was launched. The Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and net sales (15%). As part of the Performance Share component, payment is limited to a maximum of 200% of the granted proportionate target amount (cap).
In the year under review, an amount of € 3.7 million was paid out to the participants. The payment was subject to the condition that the individual participant was in an unterminated employment relationship with a company of the PUMA Group as of December 31, 2020. No further expenses were incurred and no amounts released for this program in the year under review. No further provision exists for this program.
In 2019, the global “Game Changer 2.0 – 2022” program, as outlined above, was launched. The Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and net sales (15%). As part of the Performance Share component, payment is limited to a maximum of 200% of the granted proportionate target amount (cap). It requires employment up to December 31, 2021. In the reporting year, a prorated amount of € 2.2 million was set aside as a provision for this program and € 0.1 million was released.
In 2020, the global “Game Changer 2.0 – 2023” program, as outlined above, was launched. The Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and net sales (15%). As part of the Performance Share component, payment is limited to a maximum of 300% of the granted proportionate target amount (cap). It requires employment up to December 31, 2022. In the reporting year, a prorated amount of € 2.2 million was set aside as a provision for this program and € 0.1 million was released.
In 2021, the global “Game Changer 2.0 – 2024” program, as outlined above, was launched. The Performance Cash Plan is based on the following targets: EBIT (45%), working capital as a percentage of net sales (15%) and net sales (40%). As part of the Performance Share component, payment is limited to a maximum of 300% of the granted proportionate target amount (cap). It requires employment up to December 31, 2023. In the reporting year, a prorated amount of € 2.0 million was set aside as a provision for this program.
|
Program addendum |
2021 |
2022 |
2023 |
2024 |
|
|
Issue date |
1/1/2018 |
1/1/2019 |
1/1/2020 |
1/1/2021 |
|
|
Term |
5 |
5 |
5 |
5 |
Years |
|
Vesting period |
3 |
3 |
3 |
3 |
Years |
|
Base price at program start |
37.10 |
44.40 |
67.69 |
86.23 |
EUR/share |
|
Reference value at the end of the financial year |
74.20 |
88.80 |
71.29 |
35.64 |
EUR/share |
|
Participants in year of issue |
48 |
64 |
60 |
76 |
Persons |
|
Participants at the end of the financial year |
39 |
55 |
59 |
76 |
Persons |
|
Number of “virtual shares” as of 1/1/2021 |
36,250 |
39,240 |
28,201 |
24,809 |
Shares |
|
Number of “virtual shares” expired in the FY |
0 |
-1,715 |
-1,249 |
0 |
Shares |
|
Number of “virtual shares” exercised in the FY |
-36,250 |
0 |
0 |
0 |
Shares |
|
Final number of “virtual shares” as of 12/31/2021 |
0 |
37,525 |
26,952 |
24,809 |
Shares |
|
|
|
|
|
|
|
