Report of the Supervisory Board Dear Shareholders, Audit Committee Corporate Governance Focus of Discussions Personnel Committee Annual Financial Statements Approved 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. 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: 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. 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. 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. 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. Foreword | Mission | Management Report | Share | Marketing | Consolidated Financial Statements - IFRS - |  Report of Supervisory Board | Board of Management 92 • Audit and Approval of the 2003 Annual Financial Statements • Current Business Development  • Stock Option Program • Corporate Governance Code • Corporate Planning for the Year 2005 and Further  Strategic Development • Annual General Meeting • Personnel policy • Share Buyback • Dividend • Current Issues of Business Policy