Adidas has launched a multi-year share buyback program. The program is in addition to the company’s policy to pay an annual dividend to shareholders in the range of 30 per cent to 50 per cent of net income from continuing operations.
The vast majority of the share buyback program will be financed through the company’s net cash position as well as the expected strong operating cash flow generation in the years ahead. At the same time, Adidas intends to make use of available attractive conditions for debt financing on the capital markets in order to finance the share buyback program.
Adidas will continue to relentlessly drive operating cash flow, while at the same time investing back into the company to provide for future growth. The buyback complements its stated dividend policy, underscoring its commitment to continuous shareholder return.
While the company may use the repurchased shares for all purposes in accordance with the authorization granted on May 12, 2016, except for allocating shares to executive board members as a compensation component, Adidas intends to cancel the vast majority of the repurchased shares. The authorization covers the repurchase of up to ten per cent of the company’s share capital on the stock exchange through to May 11, 2021.