## Report of the Supervisory Board 

## Dear Shareholders, 

Once again, 2004 was a year with almost optimal conditions for efficient and target-oriented work. The Supervisory Board convened four times in 2004, meeting on February 27, April 20/26, September 21, and November 16, 2004. In addition to these meetings, the PUMA AG Board of Management communicated with us orally and in writing; we were directly integrated in and informed about all important matters and decisions within the PUMA Group on a timely and ongoing basis. In the past year we have dealt intensively with the business development, the financial situation and our strategic orientation. 

## Focus of Discussions 

During the financial year, the Supervisory Board assumed the tasks imposed on it by law and the statutes; the Supervisory Board supported and advised management and monitored its activities. 

Significant issues discussed at the Supervisory Board meetings were the following in particular: 

• Audit and Approval of the 2003 Annual Financial Statements 

• Current Business Development 

• Corporate Planning for the Year 2005 and Further Strategic Development 

• Stock Option Program 

• Corporate Governance Code 

• Annual General Meeting 

• Personnel policy 

• Share Buyback 

• Dividend 

• Current Issues of Business Policy 

## Personnel Committee 

The Personnel Committee met on two occasions in the past financial year; the committee dealt intensively with various personnel-related matters concerning the Board of Management in order to ensure the Board’s continuity over the coming years. The members of the Personnel Committee are: Mr. Werner Hofer (Chairman), Mr. David Matalon, Mr. Thore Ohlsson and Ms. Katharina Wojaczek. 

## Audit Committee 

The Audit Committee received the PUMA Group’s financial data on a monthly basis and was thus in a position to track the development and orders position directly. Moreover, the Audit Committee was concerned with accounting and performance- related issues and discussed these with Management. At the meeting on February 26, 2004, the audit report for financial year 2003 was discussed in depth with the auditor. After the Supervisory Board had placed the audit engagement for financial year 2004, the Audit Committee discussed the audit engagement and focal points of the audit with the auditors during a telephone conference on December 9, 2004. The members of the Audit Committee are: Mr. Ohlsson (Chairman), Mr. Hofer and Mr. Hildel. 

## Corporate Governance 

We welcome the German Corporate Governance Code (DCGK) which describes significant legal provisions and recommendations governing the management and monitoring of listed companies; it also includes standards for responsible corporate management. Almost all of these standards have been part of PUMA AG’s daily corporate life for a long time. However, as expressly provided for in the DCGK, we reserve our right not to observe individual recommendations should there be good reasons for not doing so. These reasons are explained in each case within the scope of the annual Compliance Declaration. The Compliance Declaration is made available to our shareholders on a permanent basis on the company’s homepage. 

## Annual Financial Statements Approved 

PUMA AG’s annual accounts as prepared by the Board of Management, the consolidated financial statements, the management report and the group management report, including the underlying accounting system, have been audited and provided with an unqualified auditors’ opinion by the auditors of PricewaterhouseCoopers, Wirtschaftsprüfungsgesellschaft GmbH, Frankfurt am Main; the auditors were appointed by the General Meeting on April 20, 2004 and commissioned by the Supervisory Board to audit the annual financial statements and the consolidated financial statements. 

