Hugo Boss AG · XETR:BOSS
Hugo Boss — Investor Presentation (March 2005)
33 slides from Hugo Boss's investor presentation, March 2005
Slide 1: HUGO BOSS Company Presentation March 2005
HUGO BOSS HUGO BOSS Company Presentation March 2005 Page 1
Slide 2: HUGO BOSS Headquarters Metzingen / Germany
HUGO BOSS HUGO BOSS Headquarters Metzingen / Germany Page 2
Slide 3: HUGO BOSS at a glance
HUGO BOSS HUGO BOSS at a glance • HUGO BOSS products value at retail level 3.5 billion EUR (thereof fragrances > 900 million EUR) • Market presence in 102 countries with 3600 customers and more than 5.000 Points of Sale • Market leadership in high-end men’s fashion • Fast growing in high-end women’s
Slide 4: Vision
HUGO BOSS Vision We strive to outperform in the areas of • Product Leadership - Distinct, innovative fashion statement - Value for money products • Market Intimacy - Strong links to customers in all markets - Know-how, superior business systems and processes to understand and manage the markets • Op
Slide 5: HUGO BOSS 2004
HUGO BOSS HUGO BOSS 2004 • Net sales EUR 1,168.4 million (+11% vs. prev. year) • EBIT EUR 135.3 million (+13% vs. prev. year) • Earnings before taxes EUR 130.1 million (+8% vs. prev. year) • Net income EUR 88.2 million (+7% vs. prev. year) Page 5
Slide 6: HUGO BOSS 2004
HUGO BOSS HUGO BOSS 2004 • Year-end (12/31) share price1: - common share EUR 23.45 (+47% vs. prev. year) - preferred share EUR 24.50 (+54% vs. prev. year) (DAX increase of +7% vs. prev. year, MDAX increase of +20% vs. prev. year) • Dividend yield2: - High 3.5% (prev. year 4.4%) - Low 5.4% (prev. yea
Slide 7: Net sales by brand
Net sales by brand Change EUR mill. 2004 2003 in % BOSS 1,044.5 941.0 11 Man 975.2 890.2 10 Woman 69.3 50.8 36 HUGO 106.6 94.3 13 BALDESSARINI 17.3 18.8 (8) Total 1,168.4 1,054.1 11 Page 7
Slide 8: Net sales by region (selected countries)
Net sales by region (selected countries) Change EUR mill. 2004 2003 in % Germany 292.2 261.4 12 Benelux 83.0 65.6 27 Great Britain/Ireland 85.2 69.2 23 France 99.2 97.0 2 Total Europe 811.2 712.9 14 USA 147.4 132.4 11 Americas 205.1 186.7 10 Japan 34.8 29.0 20 PRC 21.5 16.3 32 Asia/other regions 111
Slide 9: BOSS: Product, Price, Place, Promotion
Product is: • Innovative / Emotional • Quality • Leading “Mens- / Womenswear” Price is: • Competitive • Affordable • Value for money Place is: • Business-driven • Sports-driven • Metropolitan Promotion is: • Innovative / Proactive • Young • Sporty / Class Page 9
Slide 10: BOSS (Man)
BOSS (Man) • Market presence in 102 countries with more than 4,500 points of sale • 13% worldmarket share in high-end Men‘s Apparel Market • Sales split - Businesswear 58% - Leisurewear 42% • In 65 international metropolis we achieve 44% of our net sales with 22% of our points of sale • BOSS Shops a
Slide 11: BOSS (Woman)
BOSS (Woman) • Market presence in 58 countries with 650 points of sale • Sales split - Businesswear 62% - Leisurewear 31% - Shoes & Accessories 7% • BOSS Shops achieve 51% of net sales • Integration of shoes & leather accessories into the own business essential for the brands identity and style 2000
Slide 12: Page 12
Page 12
Slide 13: Page 13
HUGO BOSS BOSS HUGO BOSS BOSS
Slide 14: Page 14
BOSS HUGO BOSS Page 14
Slide 15: Page 15
BOSS BOSS
Slide 16: HUGO: Product, Price, Place, Promotion
Product is: • Innovative / Trendy • Young / Emotional • Leading “New Menswear / New Womenswear” Price is: • Competitive • Affordable • Value for money Place is: • Fashion-driven • Metropolitan • Emotional Promotion is: • Innovative / Proactive / Cutting Edge • Aggressive / Young • Music / Movie / Pa
Slide 17: HUGO
HUGO • Market presence in in 43 countries with more than 1,000 HUGO Man points of sale and 350 HUGO Woman points of sale • Sales split HUGO Man 74% HUGO Woman 26% • HUGO Shops achieve 20% of net sales Page 17
Slide 18: Page 18
HUGO HUGO BOSS Page 18
Slide 19: BALDESSARINI: Product, Price, Place, Promotion
Product is: • Handicraft • Luxury • Designer-driven Price is: • Competitive • Value for money Place is: • Quality-driven • Metropolitan • Emotional Promotion is: • Sophisticated • Class Page 19
Slide 20: BALDESSARINI
BALDESSARINI • Market presence in 34 countries with 125 points of sale • 50% of net sales achieved in shops Page 20
Slide 21: BALDESSARINI
Boldepparin Baleprarins BALDESSARINI Page 21
Slide 22: Royalties
HUGO BOSS Royalties • The product groups of shoes and leather accessories were incorporated into the own business Page 22
Slide 23: Royalties
HUGO BOSS Royalties Page 23
Slide 24: Extension of Core Competences
HUGO BOSS Extension of Core Competences Core Competence Extension of Core Competence Businesswear Leisure- and Sportswear Clothing Clothing related Accessories BOSS HUGO Lifestyle World Lifestyle World Menswear Womenswear Clothing Shoes and Leather Accessories Page 24
Slide 25: Key Drivers for Future Growth
HUGO BOSS Key Drivers for Future Growth Category Key Value Factor BOSS Woman Fashion Competence Leisure- and Sportswear Youth & Health HUGO Fashion & Trend BOSS Selection Top-end Competence Shoes and Leather Accessories Style & Identity Directly Operated Stores / Retail Market Competence HUGO BOSS S
Slide 26: BOSS Shops / Stores
HUGO BOSS HUGO BOSS Shops / Stores Paris – Champs Elysèe Page 26
Slide 27: Growth drivers - DOS
HUGO BOSS Growth drivers - DOS Number 120 of DOS 97 100 81 80 70 60 51 40 34 35 36 37 30 20 16 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Number of DOS Page 27
Slide 28: Appendix
HUGO BOSS Appendix Page 28
Slide 29: Disclaimer
HUGO BOSS Disclaimer 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
Slide 30: Financial Calendar 2005
HUGO BOSS Financial Calendar 2005 March 30, 2005 Balance Sheet Press Conference and Analysts’ Meeting in Metzingen April 28, 2005 Publication of the First Quarter Report 2005 May 11, 2005 Annual General Meeting in Stuttgart July 28, 2005 Publication of the Interim Report 2005 November 3, 2005 Public
Slide 31: Address Contents Languages
HUGO BOSS Address Contents Languages Annual Report German Interim Report English Financial Presentations www.hugoboss.com Investor Relations Calender Stock Prices Press Releases Page 31
Slide 32: Backup
HUGO BOSS Backup Page 32
Slide 33: Shareprice development 01/2000 until 02/2005
HUGO BOSS Shareprice development - 01/2000 until 02/2005 EUR 40 35 30 25 20 15 10 5 0 00 01 02 03 04 05 n n n n n n Ja Ja Ja Ja Ja Ja preferred shares common shares DAX (indexed for preferred shares, January 2000)