Hugo Boss Ag · XETR:BOSS
Hugo Boss — Shareholder Meeting (May 2020)
41 slides from Hugo Boss's shareholder meeting presentation, May 27, 2020
Slide 1: HUGO BOSS Virtual Annual Shareholders' Meeting
HUGO BOSS VIRTUAL ANNUAL SHAREHOLDERS’ MEETING MAY 27, 2020
Slide 2: Mark Langer, Chief Executive Officer
1 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 MARK LANGER CHIEF EXECUTIVE OFFICER
Slide 3: Agenda
2 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 AGENDA 1 Business performance 2019 2 Current situation and measures 3 Foundation for long-term success
Slide 4: Adjusted full year 2019 targets achieved
3 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Adjusted full year 2019 targets achieved +2 CURRENCY-ADJUSTED % GROUP SALES 2019 EUR 2.9 BILLION
Slide 5: Online business records strong double-digit growth
4 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 ONLINE + 35 %* Successful expansion of own online store hugoboss.com to Scandinavia and Ireland Intensification of online partnerships contributes strongly to overall sales growth Online business records strong double-digit growth * Currency-adjusted.
Slide 6: Own retail stores with increase in retail productivity
5 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 RETAIL PRODUCTIVITY + 4 %** Further optimization of global store network achieved New store concept meanwhile implemented in more than 100 BOSS stores Own retail stores with increase in retail productivity
Slide 7: HUGO records over-proportionate sales growth in 2019
6 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 HUGO + 5 % ** HUGO casualwear with strong double-digit sales increases Logo-inspired products very well received by fashion-conscious HUGO customers HUGO records over-proportionate sales growth in 2019 * Currency-adjusted.
Slide 8: Collaboration with Liam Payne successfully initiated
7 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Collaboration with Liam Payne successfully initiated HUGO X LIAM PAYNE CAPSULE COLLECTION HUGO X LIAM PAYNE BERLIN EVENT
Slide 9: Asia/Pacific with over-proportionate sales increase in 2019
8 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 ASIA/ PACIFIC + 5 %** Double-digit comp store sales growth in Mainland China continues Japan, South Korea, and Singapore with robust growth Business in Hong Kong impacted by political unrest Asia/Pacific with over-proportionate sales increase in 2019 * C
Slide 10: Li Yifeng named new BOSS Brand Ambassador
9 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Li Yifeng named new BOSS Brand Ambassador
Slide 11: Strong momentum in the UK drives sales growth in Europe
10 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Strong momentum in the UK drives sales growth in Europe Americas Europe Sales ** Asia/Pacific ( 7)% * + 4% * + 5% * • Sales increases in the UK and France • Important foundation laid for future growth in Germany * Currency-adjusted. ** Including Middle
Slide 12: New outlet successfully opened in Metzingen
11 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 New outlet successfully opened in Metzingen
Slide 13: Challenging market environment in North America
12 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Challenging market environment in North America Sales Americas Europe Asia/Pacific (7)% 4% 5% * * * + + • Declining local demand and business with tourists • Own retail business stabilizes during the course of the year *Currency-adjusted.
Slide 14: Bottom-line development falls short of own expectations
13 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Bottom-line development falls short of own expectations OPERATING RESULT NET INCOME* (EBIT)* Difficult and promotional market environment in North America weighs on earnings development Investments in own retail lead to an increase in EUR EUR selling an
Slide 15: Focus remains on further executing strategic initiatives
14 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Focus remains on further executing strategic initiatives ONLINE RETAIL ASIA HUGO PRODUCTIVITY
Slide 16: HUGO BOSS takes corporate responsibility seriously
15 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 HUGO BOSS takes corporate responsibility seriously CROSS-FUNCTIONAL CRISIS TEAM ESTABLISHED WORKING REMOTELY FROM HOME ENABLED FOR ALL CORPORATE EMPLOYEES
Slide 17: HUGO BOSS with meaningful contribution to society
16 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 HUGO BOSS with meaningful contribution to society PRODUCTION OF REUSABLE FACE MASKS, PPE, & VISORS
Slide 18: Temporary store closures to protect customers and employees
17 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Temporary store closures to protect customers and employees Around 75% of own retail network closed at the end of March Remaining stores largely operate with shorter opening times Strict compliance and implementation Group of legal directives Europe* Am
Slide 19: Pandemic weighs on business performance in the first quarter
18 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 GROUP SALES Q1 2020 EUR 555 MILLION (17)% CURRENCY-ADJUSTED Pandemic weighs on business performance in the first quarter
Slide 20: HUGO BOSS well positioned to weather the current crisis
19 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 HUGO BOSS WELL POSITIONED TO WEATHER THE CURRENT CRISIS
Slide 21: Measures to secure financial stability and flexibility
20 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 1 2 Strict cost Postponement management of investments Measures to secure Additional cost savings of at CAPEX budget cut financial stability least EUR 150 million by around one third and flexibility 3 4 Limitation of Retention TNWC increase of net profi
Slide 22: Measures to secure financial stability and flexibility
21 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 1 2 Strict cost Postponement management of investments Measures to secure Additional cost savings of at CAPEX budget cut financial stability least EUR 150 million by around one third and flexibility 3 4 Limitation of Retention TNWC increase of net profi
Slide 23: Measures to secure financial stability and flexibility
22 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 1 2 Strict cost Postponement management of investments Measures to secure Additional cost savings of at CAPEX budget cut financial stability least EUR 150 million by around one third and flexibility 3 4 Limitation of Retention TNWC increase of net profi
Slide 24: Measures to secure financial stability and flexibility
23 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 1 2 Strict cost Postponement management of investments Measures to secure Additional cost savings of at CAPEX budget cut financial stability least EUR 150 million by around one third and flexibility 3 4 Limitation of Retention TNWC increase of net profi
Slide 25: Update: Expectations for the second quarter & full year 2020
24 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 UPDATE Expectations for the second quarter & full year 2020
Slide 26: HUGO BOSS well positioned to succeed in the long term
25 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 HUGO BOSS well positioned to succeed in the long term.
Slide 27: Two strong brands – BOSS and HUGO
26 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Two strong brands – BOSS and HUGO
Slide 28: #thisisBOSS
27 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 #thisisBOSS
Slide 29: #iamHUGO
28 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 #iamHUGO
Slide 30: Sustainability forms integral part of our activities
29 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Sustainability forms integral HUGO BOSS included in the DJSI World part of our for the third consecutive year activities
Slide 31: Traceable wool collection successfully launched
30 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 TRACEABLE WOOL COLLECTION SUCCESSFULLY LAUNCHED Seamless traceability along the supply chain Styles for men and women globally available
Slide 32: Fully vegan suit successfully introduced
31 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 FULLY VEGAN SUIT SUCCESSFULLY INTRODUCED
Slide 33: Ambitious sustainability targets
32 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 AMBITIOUS SUSTAINABILITY TARGETS BY 2030 BY 2025 REDUCTION OF SOURCE 100% OF COTTON CO2 EMISSIONS FROM SUSTAINABLE BY 30%* PRODUCTION * Base year 2018, according to methods of science-based targets.
Slide 34: Digitization of business model a decisive factor for long-term success
33 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Digitization of business model a decisive factor for long-term success.
Slide 35: Digital product development allows faster response to latest trends
34 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Digital product development allows faster response to latest trends Major parts of product development for HUGO already fully digitized Customer demand is met even more quickly Successful launch of digital material database
Slide 36: Digitization opens new doors for production facilities
35 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Digitization opens new doors for production facilities Digitization of own facility in Turkey continues Real-time tracking of production data made possible Usage of artificial intelligence optimizes processes
Slide 37: Successful expansion of own online business
36 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Successful expansion of own online business hugoboss.com Establishment of hugoboss.com as a digital flagship store proceeds Variety of services further enhances shopping experience Strategic online partnerships significantly intensified
Slide 38: Targeted customer approach and focus on digital marketing
37 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Targeted customer approach and focus on digital marketing Customer relationship management professionalized and expanded Personalized customer approach elevates shopping experience Digital marketing increases proximity to customer
Slide 39: Digital showroom offers swift and simple order process to partners
38 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Digital showroom offers swift and simple order process to partners Already today 100% digital distribution of HUGO products Digital showroom to be expanded to the BOSS brand Reduction of physical prototypes made possible
Slide 40: Business model geared for long-term success & sustainable growth
39 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 BUSINESS MODEL OF HUGO BOSS GEARED FOR LONG-TERM SUCCESS & SUSTAINABLE GROWTH
Slide 41: Thank you for your attention!
40 HUGO BOSS ANNUAL SHAREHOLDERS‘ MEETING 2020 Thank you for your attention!