The financial statements of PUMA SE are drawn up in accordance with the German Commercial Code (HGB).

PUMA SE is the parent company of the PUMA Group. The results of PUMA SE are influenced to a considerable extent by the subsidiaries and investments in other companies held directly and indirectly. The business development of PUMA SE is fundamentally subject to the same risks and opportunities as the PUMA Group.

PUMA SE is responsible for the wholesale business of the DACH region, consisting of the home market of Germany, Austria and Switzerland. PUMA SE is also responsible for global distributors in the Motorsports category, pan-European sales for individual key accounts, the sourcing of products from European production countries, and global licensing management. Furthermore, PUMA SE acts as a holding company within the PUMA Group and, in this role, is responsible for a part of international product development, marketing, the finance and operations, and for the strategic orientation of PUMA.

Sales (including license and commission income) increased by 24.1 % to € 540.3 million in the 2016 financial year. The increase was due to higher sales in the DACH region and higher licensing and commission income. Product sales in the DACH region increased by 15.8 % to € 150.6 million. Total PUMA SE product sales rose by 20.0 % to € 224.1 million. Licensing and commission income included in sales rose by 14.6 % to € 281.5 million. Other operating income amounted to € 57.4 million in 2016 (previous year: € 139.7 million). The decrease compared to the previous year was mainly related to lower currency exchange gains and the aforementioned BilRUG reclassification.

Total expenses, comprising material expenses, personnel expenses, depreciation/amortization and other operating expenses, was virtually unchanged compared to the previous year (2016: total € 660.8 million; previous year: € 663.8 million). While other operating expenses fell, material expenses rose due to higher sales and personnel expenses rose due to the larger number of employees.

The financial result declined by 25.9 % compared to the previous year to € 145.3 million since the previous year included income from profit transfer agreements totaling € 107.6 million related to a one-time capital increase at PUMA Sprint GmbH. Excluding this effect in the previous year, the financial result improved in 2016, due mainly to the higher profit transfer of PUMA International Trading GmbH.

Profit before tax fell by 23.6 % from € 107.6 million to € 82.2 million. The decline in taxes on income resulted partly from the adjustment of tax provisions after the end of the tax audit for the years 2007 to 2011. Net income amounted to € 78.7 million compared to €81.1 million in the previous year.

While the construction of our administration building and the acquisition of our shareholding in Genesis Group International mainly increased our total non-current assets, valuation allowances on and disposals of investments in subsidiaries led to a slight overall decline.

In total current assets, inventories rose by 15.9 % to € 50.2 million as a result of the increase in business volume. In contrast, there was a decline in receivables from affiliated companies.


On the liabilities side, equity rose by 15.0 % to € 547.8 million due to the net income for the year. This represents an improvement in the equity ratio from 40.4 % to 47.3 %. The decrease in provisions resulted in particular from the adjustment of tax provisions after the end of the tax audit for the years 2007 to 2011. The decline in liabilities resulted 
mainly from the repayment of financial liabilities that existed at Kering, the majority shareholder.

The positive development in working capital contributed significantly to the improvement in cash flow from operating activities. While there was a cash outflow from operating activities in the previous year of € 37.0 million, due to the net change in working capital, there was a cash inflow of € 49.7 million in 2016. The cash outflow from investing activities decreased from € -100.2 million to € -63.0 million. The decrease was linked to a lower capital requirement by our subsidiaries. This resulted overall in a significant improvement in free cash flow from € -232.7 million in the previous year to € -84.3 million in 2016.

Cash flow from financing activities in 2016 showed a cash inflow of € 109.8 million (previous year: € 221.3 million), resulting from the decrease in liabilities to affiliated companies.

This led to an overall increase in cash and cash equivalents from € 47.6 million to € 73.1 million. In addition, various credit lines are available to PUMA SE for financing purposes. As of December 31, 2016, the credit lines totaled € 309.0 million, of which € 19.0 million was utilized.

Outlook

For the 2017 financial year, PUMA SE does not expect any significant changes compared to 2016 in respect of net sales and income before taxes.

Relationships with Affiliated Companies  

At the end of the dependent company report of the Managing Directors for the 2016 financial year, the following statement was made: “Under the circumstances which were known to the Managing Directors at the time when the transactions listed in the report on relationships with affiliated companies were made, PUMA SE received an appropriate consideration in all cases. There were no reportable measures taken or not taken in the reporting period”.