ATIN VATS

GMI Rating - Adidas

By ATIN VATSIBS HYDERABAD

ATIN VATS

The company does not have a single entity or shareholder group with voting power in excess of 50% (majority owner).

Information regarding the removal of directors without any cause or not has not been disclosed

Adidas does not have the unilateral right to amend its by-laws/Articles of Association/constitution without the consent and approval of its shareholders.

ATIN VATS

Single shareholder controls or

shareholder group acting together control

over 50% of the company's voting power

("Majority Owner")

NO Directors can be removed without

cause

---

Involved in a series of cross-

shareholdings with other (related or

unrelated) companies

YES The company has a unilateral right

to amend the by-laws/articles of

association/constitution without

shareholder approval

NO

Has a staggered ("classified") board YES

MARKET CONTROL

RATING: 7.5 GREEN FLAG

ATIN VATS

Adidas is committed to enhancing shareholder value and complying with all regulation and laws that govern shareholder’s right.

Duly and fairly inform its shareholder about all relevent aspects of company’s business

Discloses information in accordance with respective regulation and agreements.

ATIN VATS

All common or ordinary equity shares have one share, one vote with no restrictions.

NO Shareholders can convene an EGM with 10% or less of the shares

YES

Voting rights capped at a certain percentage, no matter how many share the investor owns

YES Confidential voting with no or reasonable exceptions

YES

Voting rights different for domestic or non resident investors

NO Cumulative voting in the election of directors

NO

Voting rights dependent on the duration of ownership

NO All vote results for the last shareholder meeting disclosed within 14 calendar days of the meeting

NO

Minimum holding period in order to vote

YES Shareholders can act in concert through written communication

YES

SHAREHOLDER RIGHTS

GMI RATING: 6 GREEN FLAG

ATIN VATS

Several initiatives have been taken as a [art of energy saving measures including a new innovation in baking

Environment friendly raw materials used to reduce pollution.

Aim to develop staff with opportunities for career progression, while striving to create a climate that celebrates diversity

Launched the collection of footwear and apparel for men and women that the company says minimizes its environmental impact by efficiently using natural resources involved in its production and packaging.

Aim to harmonize the commercial interests of the company with the private and family needs of employees, thereby assuring the mutual benefit of both.

Developed Guidelines on Corporate Giving so they could help the applicants better manage the large number of donation requests and remain true to their values in the approval process.

ATIN VATS

Company (or a current or former senior executive) has been subject to a formal regulatory investigation for a material issue other than for accounting irregularities within the last year-2008-09

NO Has a policy addressing workplace safety

YES

Company (or a current or former senior executive) has pending criminal litigation against it, has been found guilty within the last 3 years, or has pled the equivalent of no contest in such litigation in the past three years, or has been under criminal investigation within the last 3 years

NO Discloses its workplace safety record in the annual report or in another form accessible to shareholders

YES

Company (or a current or former senior executive) has been cited, settled, or been found guilty of by either national or supranational authorities for some breach of law involving non-accounting issues within the last year

NO Has been charged with three or more serious workplace safety violations within the last two years

NO

Discloses its environmental policies YES Alleged by a responsible party that the company used child labor (under 14 or the minimum in market, whichever is higher)within the last three years

NO

Discloses its environmental performance YES Alleged by a responsible party that the company used sweat shops as sub-contractors within the last three years

NO

Discloses its policy regarding corporate level political donations

YES Alleged by a responsible party that the company used child labor as a source for sub-contracted work within the last three

NO

CORPORATE BEHAVIOUR

RATING: 10 GREEN FLAG