Hugo Boss Ag · XETR:BOSS
Hugo Boss — Shareholder Meeting (May 2012)
44 slides from Hugo Boss's shareholder meeting presentation, May 3, 2012
Slide 1: HUGO BOSS
HUGO BOSS
Slide 2: Annual Shareholders' Meeting 2012
ANNUAL SHAREHOLDERS’ MEETING 2012 Claus-Dietrich Lahrs (CEO) Stuttgart, May 3, 2012 Annual Meeting 2012 HUGO BOSS © May 3, 2012 2 / 44
Slide 3: Agenda
AGENDA OPERATIONAL HIGHLIGHTS 2011 FINANCIAL YEAR OUTLOOK Annual Meeting 2012 HUGO BOSS © May 3, 2012 3 / 44
Slide 4: Agenda: Operational Highlights
AGENDA OPERATIONAL HIGHLIGHTS 2011 FINANCIAL YEAR OUTLOOK Annual Meeting 2012 HUGO BOSS © May 3, 2012 4 / 44
Slide 5: 2011 the best year in history for HUGO BOSS
2011 the best year in history for HUGO BOSS ■ Record financial results ■ Strong momentum across all brands ■ Double-digit sales increases in all regions ■ Profitable retail expansion ■ Successful implementation of Project D.R.I.V.E. Annual Meeting 2012 HUGO BOSS © May 3, 2012 5 / 44
Slide 6: Record financial results
Record financial results Sales Sales and EBITDA before special items EBITDA before special items (in EUR million) Sales EBITDA 3,000 3,000 1,000 2,500 750 800 2,059 2,000 1,686 1,729 600 1,632 1,562 +19% 1,500 469 350 400 1,000 275 +34% 272 267 200 500 0 0 2007 2008 2009 2010 2011 … 2015e Annual Mee
Slide 7: Number of employees increases due to positive business development
Number of employees increases due to positive business development Number of employees at year end Germany* and worldwide 12,000 11,004 9,944 10,000 9,593 9,123 9,027 8,000 Germany 6,000 worldwide 4,000 2,347 2,433 2,295 2,152 2,110 2,000 0 2007 2008 2009 2010 2011 * according to IAS/IFRS Annual Mee
Slide 8: BOSS Selection – New direction receives strong customer support
BOSS Selection – New direction receives strong customer support ■ Sales increase by 43% in 2011 ■ Distinct brand identity across clothing and sportswear ■ Strengthens luxury brand perception in key growth markets ■ Important halo effect for entire brand portfolio Pitti Uomo // Florence, Italy Annual
Slide 9: BOSS Selection – Made to Measure underlines unrivalled tailoring competence
BOSS Selection – Made to Measure underlines unrivalled tailoring competence Annual Meeting 2012 HUGO BOSS © May 3, 2012 9 / 44
Slide 10: BOSS Black – Momentum in sportswear adds to historical strength in clothing
BOSS Black – Momentum in sportswear adds to historical strength in clothing Annual Meeting 2012 HUGO BOSS © May 3, 2012 10 / 44
Slide 11: BOSS Black – Celebrating 30 years of partnership with McLaren
BOSS Black – Celebrating 30 years of partnership with McLaren Annual Meeting 2012 HUGO BOSS © May 3, 2012 11 / 44
Slide 12: HUGO – Impressive presentation at Berlin Fashion Week
HUGO – Impressive presentation at Berlin Fashion Week HUGO Fashion Show // Berlin, Germany Annual Meeting 2012 HUGO BOSS © May 3, 2012 12 / 44
Slide 13: BOSS Green – Defining premium sportswear
BOSS Green – Defining premium sportswear ■ Sales increase 50% in 2011 ■ Strongest growing brand within the HUGO BOSS portfolio ■ Successful association with Germany’s top golfer Martin Kaymer ■ High credibility in golf & premium sportswear Annual Meeting 2012 HUGO BOSS © May 3, 2012 13 / 44
Slide 14: BOSS Orange – Sharpened brand positioning
BOSS Orange – Sharpened brand positioning Annual Meeting 2012 HUGO BOSS © May 3, 2012 14 / 44
Slide 15: RETAIL – Attractive additions to global network
RETAIL – Attractive additions to global network BOSS Store // Shenyang, China BOSS Store // Geneva, Switzerland Opening: November 2011 Opening: December 2011 Net size: 390 m² Net size: 475 m² BOSS Store // London Stratford, UK BOSS Store // Huizhou Huamao, China Opening: September 2011 Opening: Nove
Slide 16: RETAIL – Global store network grows by 85 to 622 locations in 2011
RETAIL – Global store network grows by 85 to 622 locations in 2011 EUROPE* 310 (+57) Openings: 69 thereof takeovers: 26 Closings: 12 ASIA/PACIFIC 188 (+17) AMERICAS 124 (+11) Openings: 33 Openings: 12 thereof takeovers: 8 Closings: 1 Closings: 16 Number of own retail stores as of December 31, 2011 *
Slide 17: Importance of own retail increases steadily
Importance of own retail increases steadily Retail 22% 40% 45% 55% Wholesale 75% 57% 53% 43% Royalties 3% 3% 2% 2% … 2005 2010 2011 2015e Sales by distribution channel as a percentage of total sales Annual Meeting 2012 HUGO BOSS © May 3, 2012 17 / 44
Slide 18: Agenda: 2011 Financial Year
AGENDA OPERATIONAL HIGHLIGHTS 2011 FINANCIAL YEAR OUTLOOK Annual Meeting 2012 HUGO BOSS © May 3, 2012 18 / 44
Slide 19: SALES – Growth in all regions and distribution channels
SALES – Growth in all regions and distribution channels Sales development by region, y-o-y Sales development by distribution channel, y-o-y Jan. - Dec. 2011 in Euro Jan. - Dec. 2011 in Euro fx adjusted fx adjusted 16% Europe* 9% 15% Wholesale 9% 19% 34% Americas Retail 24% 35% 34% 9% Asia/Pacific Ro
Slide 20: Income statement – Adjusted EBITDA margin reaches 22.8%
INCOME STATEMENT – Adjusted EBITDA margin reaches 22.8% 2011 2010 Change in EUR million in % ■ Gross profit margin up Net sales 2,058.8 1,729.4 19 200 bp to 61.4% due to higher share Gross profit 1,264.8 1,027.2 23 of own retail and consistent pricing in % of sales 61.4 59.4 2.0 pp strategy Selling
Slide 21: Net debt – Further net debt reduction despite higher investments
NET DEBT – Further net debt reduction despite higher investments Investments (in EUR million) Net debt (in EUR million) +95 % -26 % 108 201 149 56 2010 2011 2010 2011 ■ Own retail and infrastructure ■ Strong profit generation offsets investments drive growth working capital and capex increases Annua
Slide 22: Dividend – Dividend increase proposed
DIVIDEND – Dividend increase proposed Dividend* and payout ratio (in EUR and in % of consolidated net income attributable to equity holders of the parent company) Pref.: 2.89 3.00 Ord.: 2.88 2.50 Pref.: 2.03 Ord.: 2.02 2.00 Preferred shares: 1.46 Ordinary shares: 1.45 Pref.: 1.38 1.50 Ord.: 1.37 Pre
Slide 23: HUGO BOSS shares outperform major indices
HUGO BOSS shares outperform major indices Annual Meeting 2012 HUGO BOSS © May 3, 2012 23 / 44
Slide 24: Share class conversion offers many benefits for shareholders
Share class conversion offers many benefits for shareholders Red & Black Free Float* Red & Black Free Float* Red & Black Free Float* 88.02% 11.98% 42.25% 57.75% 65.56% 34.44% Ordinary Shares Preferred Shares Ordinary Shares 35,860,000 34,540,000 70,400,000 HUGO BOSS HUGO BOSS * Includes 1,383,833 tr
Slide 25: Agenda: Outlook
AGENDA OPERATIONAL HIGHLIGHTS 2011 FINANCIAL YEAR OUTLOOK Annual Meeting 2012 HUGO BOSS © May 3, 2012 25 / 44
Slide 26: Continued focus on execution of medium-term growth strategy
Continued focus on execution of medium-term growth strategy STRENGTHENING MAXIMIZING INDIVIDUAL CONSUMER FOCUS BRAND TO DRIVE RETAIL IDENTITIES STRIVING FOR EXPLOITING OPERATIONAL GLOBAL EXCELLENCE GROWTH OPPORTUNITIES Annual Meeting 2012 HUGO BOSS © May 3, 2012 26 / 44
Slide 27: Investing in our brands: Campaigns
Investing in our brands: Campaigns Annual Meeting 2012 HUGO BOSS © May 3, 2012 27 / 44
Slide 28: BOSS Selection Key looks
BOSS Selection Key looks Annual Meeting 2012 HUGO BOSS © May 3, 2012
Slide 29: BOSS Selection Key looks
BOSS Selection Key looks Annual Meeting 2012 HUGO BOSS © May 3, 2012
Slide 30: BOSS Selection Key looks
BOSS Selection Key looks Annual Meeting 2012 HUGO BOSS © May 3, 2012
Slide 31: HUGO – HUGO Key looks
HUGO – HUGO Key looks Annual Meeting 2012 HUGO BOSS © May 3, 2012 31 / 44
Slide 32: BOSS Green – Blurring the boundaries between leisure and golf wear
BOSS Green – Blurring the boundaries between leisure and golf wear Annual Meeting 2012 HUGO BOSS © May 3, 2012
Slide 33: BOSS Orange Key Looks
BOSS Orange Key Looks Annual Meeting 2012 HUGO BOSS © May 3, 2012
Slide 34: Investing in our brands: High profile fashion events
Investing in our brands: High profile fashion events ■ May 18, 2012: Fashion Show // Beijing, China BOSS Black Menswear BOSS Black Womenswear BOSS Selection ■ Global marketing campaign in online and offline media ■ Internet live stream using innovative 3D technology National Agriculture Exhibition C
Slide 35: Investing in our brands: Online communication
Investing in our brands: Online communication Online Newsletter Blog Mobile Social Media Annual Meeting 2012 HUGO BOSS © May 3, 2012 35 / 44
Slide 36: Good feedback on womenswear offerings
Good feedback on womenswear offerings Womenswear sales development ■ Growth in 2011 driven by all brands +9% ■ Fall 2012 first collection designed under new organisational set-up ■ Focus on strengthening BOSS Black sportswear offering 2010 2011 Share of total sales ■ Positive retailer feedback on ne
Slide 37: Full pipeline of new store projects
Full pipeline of new store projects Flagship Store // BOSS Store, Columbus Circle // Flagship Store, Champs Elysées // Shanghai, China New York, USA (Renovation) Paris, France (Renovation) BOSS Store, Long Island // BOSS Store // BOSS Store // New York, USA Taipeh, Taiwan Sao Paulo, Brazil Annual Me
Slide 38: Brand worlds upgrade online shopping experience
Brand worlds upgrade online shopping experience ■ Online sales increase by 67% to EUR 33 million in 2011 ■ Newly launched monobrand sub-stores elevate consumer experience ■ Further improved usability and navigation ■ Mobile and Swiss online store to launch in first half year 2012 Annual Meeting 2012
Slide 39: Important investments into the future growth of our business
Important investments into the future growth of our business ■ New flat-packed goods distribution center to be built near headquarters ■ Caters to future business growth and improves efficiency of key logistical processes ■ Total expenditures amount to around EUR 100 million ■ Start of operation pla
Slide 40: Attractive growth opportunities in all regions
Attractive growth opportunities in all regions ■ Ongoing good brand momentum in key markets EUROPE* ■ Attractive opportunities from own retail expansion and active space management in wholesale ■ Positive sentiment among key US wholesale partners AMERICAS ■ Brand presentation at retail as good as ne
Slide 41: HUGO BOSS starts off 2012 with double-digit growth
HUGO BOSS starts off 2012 with double-digit growth ■ First quarter Group sales increase 10% on a currency-adjusted basis ■ Again positive development in all regions and distribution channels ■ Operating result (EBITDA before special items) up 13% ■ First quarter results confirm full year outlook Ann
Slide 42: Positive 2012 outlook
Positive 2012 outlook 2012 Outlook Sales growth (currency-adjusted) up to 10% EBITDA Growth growth before of EBITDA special before items special items slightly higher slightly than than stronger salessales growth Capex above prior year level Own retail network around 50 openings Annual Meeting 2012
Slide 43: Summary – HUGO BOSS in good shape for further growth
SUMMARY – HUGO BOSS in good shape for further growth ■ Tremendous growth opportunities with all brands despite economic uncertainties ■ HUGO BOSS able to outperform difficult retail environments ■ Significant investments in the long-term growth of the business ■ Ongoing business model improvements A
Slide 44: HUGO BOSS
HUGO BOSS