Hugo Boss Ag · XETR:BOSS
Hugo Boss — FY2005 Earnings Presentation
44 slides from Hugo Boss's earnings presentation, Mar 23, 2006
Slide 1: HUGO BOSS
HUGO BOS S$
Slide 2: Balance Sheet Press Conference
Balance Sheet Press Conference March 23, 2006 Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 2 / 44
Slide 3: Brands and Markets
Brands and Markets Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 3 / 44
Slide 4: HUGO BOSS 2005
HUGO BOSS 2005 • Net sales EUR 1,309.4 million (+12% versus previous year) • Gross margin EUR 731.7 million (+16% versus previous year) • EBIT EUR 162.9 million (+20% versus previous year) • Earnings before taxes EUR 157.2 million (+21% versus previous year) • Net income EUR 108.2 million (+23% vers
Slide 5: Share Price Development
Share Price Development EUR 40 35 30 25 20 15 10 5 0 02 03 04 05 06 01 00 n n n n n n n Ja Ja Ja Ja Ja Ja Ja Vz Dax (indexed: Preferred Shares in January 2000) St MDAX (indexed: Preferred Shares in January 2000) Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 5 / 44
Slide 6: Sales by Region
Sales by Region 2005 2004 Change 2005 EUR mill. EUR mill. in % sales split in % Germany 318.4 292.2 9 24 Other European countries 582.5 519.0 12 45 Americas 233.4 205.1 14 18 Asia / other regions 134.2 111.7 20 10 Royalties 40.9 40.4 1 3 TOTAL 1,309.4 1,168.4 12 100 Balance Sheet Press Conference Ma
Slide 7: Sales by Brand
Sales by Brand 2005 2004 Change EUR mill. EUR mill. in % BOSS 1,167.5 1,044.5 12 Menswear 1,071.8 975.2 10 Womenswear 95.7 69.3 38 HUGO 124.5 106.6 17 BALDESSARINI 17.4 17.3 1 TOTAL 1,309.4 1,168.4 12 Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 7 / 44
Slide 8: BOSS Menswear
BOSS Menswear • Market presence in 104 countries with more than 4,400 points of sale (apparel only) • Sales split - Businesswear 52% - Leisurewear 39% - Shoes & Leather Accessories 9% • BOSS Stores achieve 32% of net sales • BOSS Selection achieves EUR 21 million net sales in 44 countries Balance Sh
Slide 9: BOSS Womenswear
BOSS Womenswear • Market presence in 62 countries with more than 750 points of sale (apparel only) • Sales split - Businesswear 60% - Leisurewear 28% - Shoes & Leather Accessories 12% • BOSS Stores achieve 62% of net sales • Further dynamic development 2002 2003 2004 2005 Net sales in EUR million 37
Slide 10: Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG ©
Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 10 / 44
Slide 11: Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG ©
Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 11 / 44
Slide 12: Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG ©
Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 12 / 44
Slide 13: Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG ©
Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 13 / 44
Slide 14: Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG ©
Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 14 / 44
Slide 15: HUGO
HUGO • Market presence in 43 countries with more than 1,100 HUGO Menswear points of sale and 360 HUGO Womenswear points of sale (apparel only) • Sales split - HUGO Menswear 73% - HUGO Womenswear 21% - Shoes & Leather Accessories 6% • HUGO Stores achieve 24% of net sales • The progressive and unconve
Slide 16: Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG ©
Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 16 / 44
Slide 17: BALDESSARINI
Jj BALDESSARINI • Market presence in 29 countries with 110 points of sale • 49% of net sales achieved in HUGO BOSS stores Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 17 / 44
Slide 18: Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG ©
Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 18 / 44
Slide 19: Shoes & Leather Accessories
Shoes & Leather Accessories • Integration of shoes and leather accessories into the own business essential for the brands‘ identity and style • EUR 118 million net sales (+ 32% versus previous year) • Sales split - Menswear 88% - Womenswear 12% Balance Sheet Press Conference March 23, 2006 HUGO BOSS
Slide 20: Extension of Core Competencies
Extension of Core Competencies Core Competence Extension of Core Competence Key Value Factor Businesswear Leisure- and Sportswear Youth & Health Clothing Clothing-related Accessories Brand Showcase BOSS Lifestyle World HUGO Lifestyle World Fashion & Trend Menswear Womenswear Fashion Competence Cloth
Slide 21: Directly Operated Stores
Directly Operated Stores • 145 own stores (+48 versus previous year) in 12 countries, thereof - 47 freestanding Stores - 98 shop-in-shops • EUR 138 million net sales (+41% versus previous year) • 12% sales increase on comparable selling space • 11% share of total net sales Balance Sheet Press Confer
Slide 22: HUGO BOSS Stores by Region
HUGO BOSS Stores by Region Market presence in 77 countries with 877 Stores, thereof - 355 freestanding Stores - 542 shop-in-shops 2005 2004 Germany 156 113 Other European countries 370 313 Americas 104 88 Asia / other regions 247 215 TOTAL 877 729 Share of net sales in % 34 31 Thereof Directly Opera
Slide 23: HUGO BOSS Stores
HUGO BOSS Stores Berlin – HUGO Concept Store Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 23 / 44
Slide 24: HUGO BOSS Stores
HUGO BOSS Stores Frankfurt – Shoes & Accessories Store Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 24 / 44
Slide 25: Highlights 2005
Highlights 2005 Berlin – BOSS Fashion Show Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 25 / 44
Slide 26: Highlights 2005
Highlights 2005 Los Angeles – HUGO Event Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 26 / 44
Slide 27: Highlights 2005
Highlights 2005 Monte Carlo – HUGO BOSS Boat Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 27 / 44
Slide 28: Highlights 2005
Highlights 2005 Tokio – BOSS Fashion Event Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 28 / 44
Slide 29: Royalties
Royalties • The remaining licensed out product groups fragrances, eyewear and watches achieve EUR 41 million (+4% versus previous year) • Successful market launch of care line BOSS Skin • New license partners for watches (MGI Luxury Group S.A., a Suisse subsidiary of Movado Group, Inc., US) since Ma
Slide 30: Sales Trends 2006 by Region
Sales Trends 2006 by Region 2006 2005 EUR mill. Germany Ò 318.4 Other European countries Ò 582.5 Americas Ò 233.4 Asia / other regions Ò 134.2 Royalties Ò 40.9 TOTAL Ò 1,309.4 Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 30 / 44
Slide 31: Earnings Trends 2006
Earnings Trends 2006 2006 2005 EUR mill. Sales Ò 1,309.4 Gross margin Ò 731.7 in % of sales Ò 55.9 EBIT Ò 162.9 Earnings before taxes Ò 157.2 Net income Ò 108.2 Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 31 / 44
Slide 32: Employees – by Region
Employees – by Region 2005 2004 Change Full-time equivalents in % Germany 1,911 1,747 9 Other European countries 4,262 3,936 8 Americas 1,063 958 11 Asia / other regions 348 301 16 TOTAL 7,584 6,942 9 Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 32 / 44
Slide 33: Employees – by Function
Employees – by Function 2005 2004 Change Full-time equivalents in % Production / Logistics 4,992 4,774 5 Sales / Creation / Marketing 2,025 1,649 23 Administration 567 519 9 TOTAL 7,584 6,942 9 Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 33 / 44
Slide 34: Financials
Financials Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 34 / 44
Slide 35: Income Statement
Income Statement 2005 2004 Change EUR mill. EUR mill. in % Sales 1,309.4 1,168.4 12 Cost of materials incl. changes in inventories (577.7) (537.3) (8) Gross margin 731.7 631.1 16 in % of sales 55.9 54.0 Other operating income and expenses (289.3) (260.1) (11) Personnel expenses (238.2) (198.3) (20)
Slide 36: Income Development
Income Development EUR mill. Net income 2004 88.2 Change in gross margin 100.6 Effect of sales volume on gross margin 73.6 Effect from changes in the gross margin percentage 26.5 Change in royalties 0.5 Change in operating expenses and depreciation / amortization (73.0) From other operating expenses
Slide 37: Analysis of Financial Requirements
Analysis of Financial Requirements 2005 2004 Change EUR mill. EUR mill. in % Trade receivables, other assets1 196.8 176.7 11 Inventories 265.7 250.7 6 Trade payables and other liabilities1 (146.6) (110.7) (32) Current provisions (36.4) (26.4) (38) Net current assets 279.5 290.3 (4) Other non-recurre
Slide 38: Free Cash Flow
Free Cash Flow 2005 2004 Change EUR mill. EUR mill. in % Net income 108.2 88.2 23 Depreciation / amortization 41.3 37.4 10 Change in pension provisions 4.4 (5.7) Cash flow 153.9 119.9 28 Net additions to fixed assets (75.7) (78.3) 3 Change in remaining net capital invested 25.5 9.0 Currency translat
Slide 39: Expansion of HUGO BOSS Headquarters
Expansion of HUGO BOSS Headquarters Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 39 / 44
Slide 40: Appendix
Appendix Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 40 / 44
Slide 41: Disclaimer
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 similar exp
Slide 42: Financial Calendar
Financial Calendar March 23, 2006 Annual Press and Analyst Conference April 27, 2006 Publication of the First Quarter Report 2006 May 04, 2006 Annual Shareholders‘ Meeting in Stuttgart July 27, 2006 Publication of the Interim Report January - June 2006 November 02, 2006 Publication of the Third Quar
Slide 43: Internet Address
Internet Address Contents Languages Annual Report German Interim Report English www.hugoboss.com Financial Presentations Investor Relations Calendar Stock Prices Press Releases Balance Sheet Press Conference March 23, 2006 HUGO BOSS AG © 43 / 44
Slide 44: HUGO BOSS
HUGO BOS S$