Authorized Capital Pursuant to Article 4, items 6 and 7 of the PUMA AG Articles of Association, the Board is authorized, with the approval of the  Supervisory Board, to increase the nominal capital up to May 13, 2007 authorized, with the approval of the Supervisory Board, to exclude the shareholders’ subscription right in order to avoid  fractional amounts (Authorized Capital I);  and equipped shares at the time of final determination of the issue price. If the Board of Management does not make use of the authorization to exclude the subscription right, it may exclude shareholders’ subscription rights – with the approval of the Supervisory Board – only in order to compensate for possible fractional amounts (Authorized Capital II).  In addition, pursuant to Article 4 (item 5) of the Articles  of Association, further conditional capital to the amount of  € 3.9 million was created with the purpose of financing a total 1,530,000 stock options. The stock options are or were issued  to management within the scope of the Stock Option Program.  As of December 31, 2004, conditional capital amounting to  € 1.9 million is available. Pursuant to Article 4 (items 3 and 4) of the Articles of Association, the capital was subject to a conditional increase by € 0.8 million (conditional capital 1997 and 1999). The conditional capital serves to finance the convertible bonds issued to management within the scope of the long-term investment program (see Paragraph 20 of these Notes). Most of the convertible bonds have already been converted. Conditional capital as of the balance sheet date amounts to € 0.3 million. The Board of Management proposes that a dividend of € 1.00 per share or a total of € 16.1 million from the PUMA AG balance sheet profit be approved for distribution to the shareholders. A dividend  of € 0.70 per share or, in total, € 11.2 million was distributed for  2003. The increase in dividend distribution corresponds to the increase in net earnings  Use of balance sheet profit of PUMA AG: Balance sheet profit of PUMA AG as of Dec. 31 € million 18.5 78.1 Dividend per share € 1.00 0.70 Number of shares outstanding on Dec. 31  share of stock 16,061,714 16,058,714 Dividend, total € million 16.1 11.2 Carry-forward to the new accounting period € million 2.4 66.8 2004 2003 Foreword | Mission | Management Report | Share | Marketing |  Consolidated Financial Statements - IFRS - | Report of Supervisory Board | Board of Management 81 Dividends The amounts eligible for distribution relate to the balance sheet profit of PUMA AG which are determined in accordance with German Commercial Law.  Conditional Capital  • through the issuance of new shares once or repeatedly in  exchange for contributions in cash by a total of up to  € 3,840,000.00. Given the approval of the Supervisory Board, an exclusion of the subscription right is admissible either in full  or in part in the event of a capital increase in exchange for cash  contributions, if the issue price of the new shares does not fall  significantly below the market price of already listed, equally • through the issuance of new shares once or repeatedly in  exchange for contributions in cash by a total of up to  € 11,520,000.00; the shareholders are to be granted a  subscription right. However, the Board of Management is