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## Equity Ratio at 57.6% 

Once again, the capital structure was successfully improved in 2004. Despite the 32.8% increase in the balance sheet total from € 700.1 million to € 929.6 million, the equity ratio was up 

from 54.7% to 57.6%. This development underscores the strong financial position of the PUMA Group. 

## Further Improvement in Liquidity 

As a result of the strongly improved cashflow, cash and cash equivalents almost doubled to € 369.3 million. Concurrently, bank debt was reduced from € 16.8 million to € 12.9 million. 

## Working Capital Again Improved 

Working capital amounted to 9.7% of sales after 12.2% in the previous year. In absolute figures, the working capital declined by 4.7% at year-end, falling from € 155.7 million to 

€ 148.4 million. This development, which surpassed expectations, is primarily due to marginal inventory build-ups. A higher amount of merchandise was received in December 2003, whereas the year-end 2004 indicates a shift to January 2005. The calculation of working capital includes inventories, plus current receivables, less current non-interest-bearing liabilities and provisions, to the extent attributable to the operational area. 

Inventories were up by 2.5% to € 201.1 million and receivables rose by 8% to € 189.6 million. This development confirms PUMA’s systematic and effective working capital management. 

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As a result, net liquidity improved from € 173.8 million to € 356.4 million. 

