Hugo Boss Ag · XETR:BOSS
Hugo Boss — FY2004 Earnings Presentation
35 slides from Hugo Boss's earnings presentation, Mar 30, 2005
Slide 1: Analysts' Conference
HUGO BOSS Analysts’ Conference March 30, 2005
Slide 2: Brands and Markets
HUGO BOSS Brands and Markets
Slide 3: HUGO BOSS 2004
HUGO BOSS HUGO BOSS 2004 • Net sales EUR 1,168.4 million (+11% vs. prev. year, currency-adj. +13%) • Gross margin EUR 631.1 million (+16% 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% v
Slide 4: 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 5: Share Price Development
HUGO BOSS Share Price Development* 800% 700% 600% 500% Common stock 400% Preferred stock DAX 300% 200% 100% 0% 99 04 96 97 98 00 01 02 03 05 y y y y y y y y y y ar ar ar ar ar ar ar ar ar ar nu nu nu nu nu nu nu nu nu nu Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja * incl. dividend
Slide 6: Sales by region
HUGO BOSS Sales by region 2004 2003 Change Change 2004 currency-adj. sales split EUR mill. EUR mill. in % in % in % Germany 292.2 261.4 12 12 25 Other European countries 519.0 451.5 15 15 44 Americas 205.1 186.7 10 20 18 Asia / Other regions 111.7 101.3 10 15 10 Royalties 40.4 53.2 (24) (24) 3 Total
Slide 7: Sales by brand
HUGO BOSS Sales by brand 2004 2003 Change Change currency-adj. EUR mill. EUR mill. in % in % BOSS 1,044.5 941.0 11 13 Man 975.2 890.2 10 12 Woman 69.3 50.8 36 38 HUGO 106.6 94.3 13 14 BALDESSARINI 17.3 18.8 (8) (7) Total 1,168.4 1,054.1 11 13
Slide 8: 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 Stores
Slide 9: BOSS (Woman)
BOSS (Woman) • Market presence in 58 countries with 650 points of sale • Sales split - Businesswear 62% - Leisurewear 31% - Shoes & Accessories 7% • BOSS Stores achieve 51% of net sales • Integration of shoes and leather accessories into the own business essential for the brands identity and style •
Slide 10: Slide 10
Slide 11: BOSS
HUGO BOSS BOSS
Slide 12: Slide 12
Slide 13: Slide 13
Slide 14: HUGO
HUGO • Market presence in 43 countries with more than 1,000 HUGO Man points of sale and 350 HUGO Woman points of sale • Sales split HUGO Man 76% HUGO Woman 24% • HUGO Stores achieve 20% of net sales • In many markets a leading position in the fashion-forward segment has been achieved
Slide 15: Slide 15
Slide 16: BALDESSARINI
BALDESSARINI • Market presence in 34 countries with more than 125 points of sale • 50% of net sales achieved in stores
Slide 17: Baldessarini
Boldepiarin:
Slide 18: Royalties
HUGO BOSS Royalties • The product groups of shoes and leather accessories, previously licensed out, were incorporated into the own business • Total royalties from fragrances, eyewear and watches, which continue to be licensed out, increased by 4%
Slide 19: 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
Slide 20: 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 21: HUGO BOSS Stores
HUGO BOSS HUGO BOSS Stores Paris – Champs-Elysées
Slide 22: HUGO BOSS Stores by region
HUGO BOSS HUGO BOSS Stores by region 2004 2003 Germany 113 97 Other European countries 313 272 Americas 88 81 Asia / Other regions 215 186 Total 729 636 Share of net sales in % 31 30 Thereof Directly Operated Stores 97 81 Share of net sales in % 8 8
Slide 23: Sales trends 2005 by region
HUGO BOSS Sales trends 2005 by region 2005 2004 EUR mill. Germany Ò 292.2 Other European countries Ò 519.0 Americas Ò 205.1 Asia / Other regions Ò 111.7 Royalties Ò 40.4 Total Ò 1,168.4 Sales growth in the high single digits when adjusted for currency effects
Slide 24: Earnings trends 2005
HUGO BOSS Earnings trends 2005 2005 2004 EUR mill. Sales Ò 1,168.4 Gross margin Ò 631.1 in % of sales Ò 54.0 EBIT Ò 135.3 Earnings before taxes Ò 130.1 Net income Ò 88.2 Earnings before taxes should rise in proportion with sales growth
Slide 25: Employees – by region
HUGO BOSS Employees – by region Change Full-time equivalents 2004 2003 in % Germany 1,747 1,623 8 Other European countries 3,936 2,342 68 Americas 958 878 9 Asia / Other regions 301 267 13 Total 6,942 5,110 36
Slide 26: Employees – by function
HUGO BOSS Employees – by function Change Full-time equivalents 2004 2003 in % Production / Logistics 4,774 3,226 48 Sales / Creation / Marketing 1,649 1,424 16 Administration 519 460 13 Total 6,942 5,110 36
Slide 27: Financials
HUGO BOSS Financials
Slide 28: Income Statement
HUGO BOSS 2004 2003 Change Income Statement EUR mill. EUR mill. in % Sales 1,168.4 1,054.1 11 Cost of materials incl. changes in inventories (537.3) (508.8) (6) Gross margin 631.1 545.3 16 in % of sales 54.0 51.7 Other operating income and expenses1 (261.7) (224.9) (16) Personnel expenses1 (198.1) (
Slide 29: Income Development
HUGO BOSS Income Development EUR mill. Net income 2003 82.4 Change in gross margin 85.8 Change in royalties (12.8) Effect of sales volume on gross margin 62.5 Effect from changes in the gross margin percentage 36.1 Change in operating expenses and depreciation / amortization (70.1) from other operat
Slide 30: Analysis of Financial Requirements
HUGO BOSS Analysis of Financial Requirements 2004 2003 Change EUR mill. EUR mill. in % Trade receivables, other assets1 176.7 222.6 (21) Inventories 250.7 214.7 17 Trade payables and other liabilities1 (66.8) (53.0) (26) Provisions (81.2) (74.2) (9) Net current assets 279.4 310.1 (10) Trade receivab
Slide 31: Free Cash Flow
HUGO BOSS Free Cash Flow 2004 2003 Change EUR mill. EUR mill. in % Net income 88.2 82.4 7 Depreciation / amortization1 37.4 32.9 14 Change of pension provisions (5.7) (3.4) (68) Cash flow 119.9 111.9 7 Net additions to fixed assets (78.3) (35.0) Change in remaining net capital invested 9.0 (1.5) Cur
Slide 32: Appendix
HUGO BOSS Appendix
Slide 33: Forward-looking Statements Contain Risks
HUGO BOSS 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 exp
Slide 34: 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 35: Address Contents Languages
HUGO BOSS Address Contents Languages Annual Report Interim Report Financial Presentations www.hugoboss.com German / English Investor Relations Calender Stock Prices Press Releases