Hugo Boss Ag · XETR:BOSS

Hugo Boss — Shareholder Meeting (May 2018)

30 slides from Hugo Boss's shareholder meeting presentation, May 3, 2018

  1. Slide 1: HUGO BOSS

    HUGO BOSS

  2. Slide 2: Annual Shareholders' Meeting 2018

    Annual Shareholders’ Meeting 2018 Stuttgart – May 3, 2018 Mark Langer, Chief Executive Officer HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 2

  3. Slide 3: HUGO BOSS achieves its goals in 2017

    HUGO BOSS achieves its goals in 2017 HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 3

  4. Slide 4: Market growth accelerates slightly in 2017

    Market growth accelerates slightly in 2017 Regional performance Growth of global premium apparel market*  Trends marked by substantial regional differences in Europe  High levels of discounting persist in the US ~4%  Asia benefits from recovery in local demand ~3% 2016 2017 *The Business of Fashi

  5. Slide 5: Sales growth of HUGO BOSS is gaining significant momentum

    Sales growth of HUGO BOSS is gaining significant momentum Retail LFL sales development, in % (fx-adjusted) 8 7 5 4 3 0 (3) (3) (4) (6) (6) (8) (8) (12) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Fourth-quarter 2017 performance represents strongest growth in more than five years

  6. Slide 6: HUGO BOSS grows on a broad base

    HUGO BOSS grows on a broad base EUROPE AMERICAS ASIA/ PACIFIC +2%* +1%* +6%*  UK is the region’s growth engine  US business returns to growth  Double-digit retail LFL increase in China  Stable sales performance in  Rationalization of US wholesale Germany business completed  Japan benefits from

  7. Slide 7: HUGO BOSS increases sales and earnings in 2017

    HUGO BOSS increases sales and earnings in 2017 GROUP SALES  Sales up despite negative currency effects 2,733 EUR million +1%*  Strict cost discipline EBITDA (before special items)  Consolidated net income benefits from the 491 EUR million 0% non-recurrence of prior-year expenditures CONSOLIDATED

  8. Slide 8: Dividend increase contributes to attractive shareholder returns

    Dividend increase contributes to attractive shareholder returns Dividend per share and payout ratio (in EUR) (in %**) 4,00 4.00 93 100  Dividend increase 3.62 3.62 proposed to EUR 2.65 per 3.34 79 78 75 share 70 3,00 3.00 75 2.60 2.65*  Return to dividend policy of paying out between 2,00 2.00 50

  9. Slide 9: HUGO BOSS share outperforms benchmark indices

    HUGO BOSS share outperforms benchmark indices EUR 90 +22% 80 70 60 50 January 2017 April 2017 July 2017 October 2017 December 17 HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 9

  10. Slide 10: Consequent implementation of strategic realignment

    Consequent implementation of strategic realignment DIGITAL III. Drive the I. Refocus digital the brand transformation GLOBAL AGILE CUSTOMER- CENTRIC IV. Innovate II. Refine the the way way we sell we operate SUSTAINABLE HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 10

  11. Slide 11: Focus on two strong brands – BOSS and HUGO

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate Focus on two strong brands – BOSS and HUGO HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 11

  12. Slide 12: Positive feedback on BOSS fashion shows

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate Positive feedback on BOSS fashion shows HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 12

  13. Slide 13: Fashion show in Florence marks the beginning of a new era for HUGO

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate Fashion show in Florence marks the beginning of a new era for HUGO HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 13

  14. Slide 14: Sales productivity in own retail expected to increase significantly

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate Sales productivity in own retail expected to increase significantly 2021 EUR 13,000 per sqm 2016 EUR 10,900 per sqm HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 14

  15. Slide 15: Expansion of casualwear offering in own retail

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate Expansion of casualwear offering in own retail HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 15

  16. Slide 16: Implementation of new store concepts for BOSS and HUGO

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate Implementation of new store concepts for BOSS and HUGO HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 16

  17. Slide 17: New construction of the flagship outlet in Metzingen

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate New construction of the flagship outlet in Metzingen HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 17

  18. Slide 18: Personalized service will further elevate the shopping experience

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate Personalized service will further elevate the shopping experience HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 18

  19. Slide 19: Omnichannel services link online and physical retailing

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate Omnichannel services link online and physical retailing HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 19

  20. Slide 20: HUGO BOSS makes significant progress in the online business

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate HUGO BOSS makes significant progress in the online business HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 20

  21. Slide 21: HUGO presents first completely digitally developed collection

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate HUGO presents first completely digitally developed collection /////////// DIGITAL [ e ] VOLUTION ///////////////////////////////////// HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS

  22. Slide 22: HUGO digital showroom rolled out in additional European markets

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate HUGO digital showroom rolled out in additional European markets HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 22

  23. Slide 23: HUGO transformation accelerates the change of corporate culture

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate HUGO transformation accelerates the change of corporate culture Agile management HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 23

  24. Slide 24: HUGO BOSS included in the Dow Jones Sustainability Index for the first time

    Refocus the brand II Refine the way we sell II Drive the digital transformation II Innovate the way we operate HUGO BOSS included in the Dow Jones Sustainability Index for the first time Stakeholder dialog Transparency intensified increased Collaboration in alliances Sustainable products extended de

  25. Slide 25: Outlook 2018: higher sales, higher consolidated net income

    Outlook 2018: higher sales, higher consolidated net income GROUP SALES Increase at a low to mid single-digit percentage rate EBITDA (before special items) Development within a range of (2)% and +2% CONSOLIDATED NET INCOME Increase at a low to mid single-digit percentage rate HUGO BOSS Annual Shareho

  26. Slide 26: First Quarter Results 2018 reconfirm full-year outlook

    First Quarter Results 2018 reconfirm full-year outlook SALES Q1 2018 (by region) GROUP SALES Q1 2018 650 EUR million +5%* EUROPE** +3%* in EUR: 0% in EUR: +1% EBITDA (before special items) 99 EUR million +1% AMERICAS +7%* in EUR: (6)% NET INCOME attributable to equity holders of the parent company 5

  27. Slide 27: Strategic realignment is progressing well

    Strategic realignment is progressing well The refocusing of BOSS and HUGO has generated strong initial results. Multiple drivers in place to drive further sales growth. Investments and efficiency improvements will yield profitable growth. HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3

  28. Slide 28: Many thanks for your attention!

    Many thanks for your attention! HUGO BOSS Annual Shareholders´ Meeting 2018 HUGO BOSS © May 3, 2018 28

  29. Slide 29: Forward-looking statements contain risks

    Forward-looking statements contain risks This document contains forward-looking statements that reflect management’s current views with respect to future events. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “project”, “should”, and similar expressions i

  30. Slide 30: HUGO BOSS

    HUGO BOSS

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