Hugo Boss Ag · XETR:BOSS
Hugo Boss — Non-Deal Roadshow (March 2021)
57 slides from Hugo Boss's roadshow presentation, March 2021
Slide 1: Investor Meeting Presentation
INVESTOR MEETING PRESENTATION March – May
Slide 2: Company Overview
2 INVESTOR MEETING PRESENTATION Company Overview SUSTAINABILITY KEY PRIORITIES THE COMPANY One of the leading companies in Create Sustainability the premium apparel segment brand heat & product desire as integral part of operations Two iconic brands Exploit Clearly defined BOSS & HUGO global sales o
Slide 3: Agenda
3 INVESTOR MEETING PRESENTATION AGENDA 1 About HUGO BOSS 2 FY/2020 Results 3 Strategic Priorities 4 Sustainability
Slide 4: HUGO BOSS: A Global Fashion & Lifestyle Company
4 INVESTOR MEETING PRESENTATION HUGO BOSS A GLOBAL FASHION & LIFESTYLE COMPANY
Slide 5: Our Brands
5 INVESTOR MEETING PRESENTATION OUR BRANDS
Slide 6: BOSS brand values and share of Group sales
6 INVESTOR MEETING PRESENTATION BOSS DRESSES THE DRIVE BRAND VALUES Status-oriented customer in the upper MASCULINITY/FEMININITY premium segment who wants to dress in a modern, sophisticated way. From classic business outfits to a wide range SEXINESS SUCCESS 85% of modern and stylish leisure looks.
Slide 7: HUGO is the platform of brand values
7 INVESTOR MEETING PRESENTATION HUGO IS THE PLATFORM OF BRAND VALUES SELF-EXPRESSION Expressive customer in the premium segment. Casual- and businesswear collections in the contemporary fashion segment characterized GLOBALLY ENGAGED ALWAYS CURIOUS 15% by progressive designs. of Group sales AUTHENTIC
Slide 8: Global sales distribution across 127 countries
8 INVESTOR MEETING PRESENTATION Global sales distribution across 127 countries SHARE OF GROUP SALES * EUROPE AMERICAS ASIA/PACIFIC (INCL. MIDDLE EAST/AFRICA) 63% 16% 18% GERMANY: 14% U.S.: 11% CHINA: 11% GREAT BRITAIN: 13% CANADA: 2% OCEANIA: 2% FRANCE: 6% CENTRAL & SOUTH JAPAN: 2% AMERICA: 3% BENEL
Slide 9: Distribution via own retail and wholesale channel
9 INVESTOR MEETING PRESENTATION Distribution via own retail and wholesale channel 3% LICENSES 11% ONLINE RETAIL 66% RETAIL 31% WHOLESALE 55% B&M RETAIL FY2020 Own online sales account for 11% of Group sales, up from 5% in 2019
Slide 10: Well diversified store portfolio across regions
10 INVESTOR MEETING PRESENTATION Well diversified store portfolio across regions* Freestanding stores 212 Shop-in-Shops 302 Outlets 75 Europe 589 Freestanding stores 92 Americas Shop-in-Shops 105 251 Asia/Pacific Outlets 54 317 Freestanding stores 141 Group 1,157 Shop-in-Shops 105 Outlets 71 GROUP 4
Slide 11: Sourcing and production focused on Europe and Asia
11 INVESTOR MEETING PRESENTATION Sourcing and production focused on Europe and Asia* 44% ASIA 6% NORTH AFRICA 12% WESTERN EUROPE 36% EASTERN EUROPE 01% AMERICAS 17% OWN PRODUCTION 83% THIRD PARTY PRODUCTION * NUMBERS AS OF 2020, IN VALUE TERMS
Slide 12: Agenda
12 INVESTOR MEETING PRESENTATION AGENDA 1 About HUGO BOSS 2 FY/2020 Results 3 Strategic Priorities 4 Sustainability
Slide 13: Key priorities while managing the pandemic
13 INVESTOR MEETING PRESENTATION Key priorities while managing the pandemic JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 MANAGING THE PANDEMIC Executing measures to maintain financial stability and flexibility Gradual recovery of busines
Slide 14: Measures to protect financial stability
14 INVESTOR MEETING PRESENTATION Successful execution of comprehensive measures to protect financial stability Strict cost Postponement management of investments ~ EUR 200 million* ~ EUR 70 million • Significant payroll as well as rental savings achieved • Postponement of store openings and renovati
Slide 15: Strong free cash flow generation in 2020
15 INVESTOR MEETING PRESENTATION Strong free cash flow generation in 2020 FY 2020 Successful execution of comprehensive measures safeguards free cash flow EUR Revolving syndicated loan of EUR 633 million 164 only utilized in the amount of EUR 105 million Additional credit commitments totaling EUR 27
Slide 16: Store opening rate: ~20% of network closed on average
16 INVESTOR MEETING PRESENTATION ~20% of global store network closed on average in fiscal year 2020 100% 75% 50% STORE OPENING RATE * 25% Q1 2020 Q2 2020 Q3 2020 Q4 2020 0% ~85% ~50% ~95% ~85% * NUMBER OF OWN RETAIL POINTS OF SALE NOT AFFECTED BY TEMPORARY CLOSINGS DIVIDED BY TOTAL NUMBER OF OWN RET
Slide 17: Pandemic weighs on brick-and-mortar business
17 INVESTOR MEETING PRESENTATION RETAIL (30)%* Temporary store closures due to lockdowns weigh on own retail sales, in particular in the second and fourth quarter Lower deliveries to wholesales partners reflect cautious order behavior in light of the pandemic (34)%* WHOLESALE Negative implications o
Slide 18: Third consecutive year of strong online sales growth
18 INVESTOR MEETING PRESENTATION + 49 % * Own online sales of EUR 221 million achieved in 2020 Share of own online business more than doubles to 11% of Group sales Successful expansion of hugoboss.com to 32 additional markets Third consecutive year with strong double-digit online sales growth * CURR
Slide 19: Renewed lockdowns in Europe weigh on sales
19 INVESTOR MEETING PRESENTATION EUROPE SALES ** Major markets, including the UK, Germany, and France with low to mid-double-digit sales declines (31)% * Markets in southern Europe particularly hit by lower tourist flows in light of international travel restrictions On average, around 25% of own sto
Slide 20: Gradual business recovery in the Americas continues
20 INVESTOR MEETING PRESENTATION AMERICAS SALES Business in the U.S. and Canada severely impacted by lockdown-related store closures and lower tourist (42)% * flows Sequential business recovery in the U.S. continues in Q4, supported by robust local demand Latin America returns to growth in the fourt
Slide 21: Recovery in Asia/Pacific driven by mainland China
21 INVESTOR MEETING PRESENTATION ASIA/PACIFIC SALES Mainland China continues its double-digit growth trajectory in Q4 with sales up 24% (20)% * Markets such as Australia and Japan record sequential improvements in the fourth quarter Lower tourist flows continue to negatively impact business in Hong
Slide 22: BOSS and HUGO brand sales; casualization trend
22 INVESTOR MEETING PRESENTATION Casualwear benefits from ongoing trend towards casualization (32) % HUGO BOSS (27) % * CURRENCY-ADJUSTED
Slide 23: Cost-saving measures limit EBIT decline in 2020
23 INVESTOR MEETING PRESENTATION Execution of comprehensive cost-saving measures limit EBIT decline in 2020 Group sales Gross margin Operating expenses ** EBIT ** Net income ** EUR EUR EUR EUR 1,946 61.0 1,313 (126) (131) MILLION % MILLION MILLION MILLION (31)%* (400) bp (14)% <(100)% <(100)% YOY YO
Slide 24: Agenda
24 INVESTOR MEETING PRESENTATION AGENDA 1 About HUGO BOSS 2 FY/2020 Results 3 Strategic Priorities 4 Sustainability
Slide 25: Vision: Be the most desirable premium fashion & lifestyle brand
25 INVESTOR MEETING PRESENTATION VISION BE THE MOST DESIRABLE PREMIUM FASHION & LIFESTYLE BRAND
Slide 26: Our strategic priorities for future growth
26 INVESTOR MEETING PRESENTATION Our strategic priorities for future growth CREATE EXPLOIT DRIVE BRAND HEAT & GLOBAL SALES OPERATIONAL PRODUCT DESIRE OPPORTUNITIES EXCELLENCE
Slide 27: Create brand heat & product desire
27 INVESTOR MEETING PRESENTATION EMOTIONALIZE THE BRANDS Emotionalize the brands and deliver inspiring storytelling DOMINATE CLOTHING Leverage strengths in clothing segment to increase market share CREATE PUSH BRAND HEAT & CASUALIZATION Leverage trend towards casualization and PRODUCT DESIRE exploit
Slide 28: Marketing initiatives to drive brand desirability
28 INVESTOR MEETING PRESENTATION Marketing initiatives to drive brand desirability EVENTS PERSONALITIES COLLABORATIONS
Slide 29: Community engagement on social media accelerates
29 INVESTOR MEETING PRESENTATION Community engagement on social media further accelerates AVERAGE NUMBER OF INSTAGRAM LIKES PER POST FOLLOWERS MORE THAN GROW 2x double double-dgi double-digit 2020 VS. 2019 2020 VS. 2019
Slide 30: Serving our customers across all wearing occasions
30 INVESTOR MEETING PRESENTATION Serving our customers across all wearing occasions
Slide 31: New interpretation of formalwear with casual tailoring
31 INVESTOR MEETING PRESENTATION New interpretation of formalwear with strong focus on casual tailoring BROAD BOMBER SUIT CASUAL TAILORING
Slide 32: Chris Hemsworth is the global face of BOSS
32 INVESTOR MEETING PRESENTATION Chris Hemsworth is the global face of BOSS
Slide 33: BOSS x AJBXNG gains further momentum
33 INVESTOR MEETING PRESENTATION BOSS x AJBXNG gains further momentum FATHER‘S DAY CAMPAIGN
Slide 34: Successful launch of exclusive BOSS x NBA capsule
34 INVESTOR MEETING PRESENTATION Successful launch of exclusive BOSS x NBA capsule
Slide 35: Creating a buzz with the launch
35 INVESTOR MEETING PRESENTATION CREATING A BUZZ WITH THE LAUNCH OF
Slide 36: HUGO x Liam Payne supports Cotton made in Africa
36 INVESTOR MEETING PRESENTATION HUGO x Liam Payne supports “Cotton made in Africa”
Slide 37: Exploit global sales opportunities
37 INVESTOR MEETING PRESENTATION LEVERAGE ONLINE & OC EXPERIENCE #onlinefirst: Aggressively invest in online growth and omnichannel services EXPLOIT EXPLOIT GROWTH POTENTIAL IN CHINA China first: Elevate product offering, increase GLOBAL SALES brand hype, push retail productivity, increase space and
Slide 38: Exploiting the full potential of mainland China
38 INVESTOR MEETING PRESENTATION Exploiting the full potential of mainland China Momentum continues into 2021, supported by strong activation around Chinese New Year Local brand ambassadors drive awareness among younger customers Leveraging full potential through moderate space expansion and strong
Slide 39: Leveraging sales opportunities in mainland China
39 INVESTOR MEETING PRESENTATION Leveraging sales opportunities in mainland China Robust retail footprint Concession business on Tmall and JD 1 across tier 1 and tier 2 cities 1 with strong double-digit growth White spot opportunities, Tapping in to additional e-com opportunities 2 especially in tie
Slide 40: Well on track to achieve 2022 online sales target
40 INVESTOR MEETING PRESENTATION Well on track to achieve 2022 online sales target Online sales to grow to more than EUR 400 million by 2022 Online sales x4 (in EUR million) >400 EUR 300 million mark to be crossed before year-end 2021 221 151 110 CAGR of >40% achieved 76 79 between 2018 and 2020 201
Slide 41: Geographical rollout of hugoboss.com in full swing
41 INVESTOR MEETING PRESENTATION Geographical rollout of hugoboss.com in full swing hugoboss.com hugoboss.com markets 2020 markets 2021 At the end of 2020, hugoboss.com is available in ~ 50 markets
Slide 42: Drive operational excellence
42 INVESTOR MEETING PRESENTATION LEVERAGE SCALE AT OPERATIONS Implement a lean & flexible supply chain Drive digitalization across all Operations activities Continue simplification journey DRIVE Realize COGS savings through sourcing optimization without compromising quality OPERATIONAL EXCELLENCE
Slide 43: Agenda
43 INVESTOR MEETING PRESENTATION AGENDA 1 About HUGO BOSS 2 FY/2020 Results 3 Strategic Priorities 4 Sustainability
Slide 44: Sustainability is an integral part of business operations
44 INVESTOR MEETING PRESENTATION RESPONSIBILITY The aim of the Company’s sustainability activities is to ensure its long-term success through continuous improvement and anticipatory management of environmental, social as well as economic opportunities and SUSTAINABILITY risks. is an integral part of
Slide 45: Clearly defined KPIs to measure sustainability progress
45 INVESTOR MEETING PRESENTATION Clearly defined KPI’s to measure progress in sustainability ORGANIZATIONAL PROCESSES KPIS AND STRUCTURE AND TOOLS INCENTIVES ▪ Global sustainability ▪ Clear guidelines, policies and ▪ Clearly defined KPIs to measure department steering the topic tools to ensure susta
Slide 46: Sustainability commitment: Today. Tomorrow. Always.
46 INVESTOR MEETING PRESENTATION Sustainability commitment ingrained in the concept TODAY. TOMORROW. ALWAYS. TOMORROW ALWAYS TODAY Tomorrow contains the Always encompasses our Today stands for the concrete goals we have set overall sustainability milestones achieved so far ourselves for the future p
Slide 47: Three focus areas: Product, People & Society, Environment
47 INVESTOR MEETING PRESENTATION TODAY. TOMORROW. ALWAYS. embedded in our three focus areas PRODUCT PEOPLE & SOCIETY ENVIRONMENT In addition to design, Adherence to high social We are committed to the quality, and durability, our standards forms the basis introduction and further products meet high
Slide 48: Product: Strive for highest quality and longevity
48 INVESTOR MEETING PRESENTATION Product Strive for highest quality and longevity ALWAYS. Our ongoing commitment to serve conscious customer segment: Offering more sustainable products through the use of more sustainable materials while at the same time respecting animal welfare and ensuring product
Slide 49: Product today: Increasing responsible product offering
49 INVESTOR MEETING PRESENTATION Product TODAY. Increasing responsible product offering 2018 2019 2020 2021 PF18 FW19 PS20 SR20 FW20 SR21 PF21 FW21 RESPONSIBLE TAILORING RESPONSIBLE: Today. Tomorrow. Always. PRODUCT BOSS: THE JOURNEY HUGO: Piñatex® sneaker CLEAN UP BOSS Menswear YOUR ACT Traceable W
Slide 50: Product tomorrow: Main goals by 2025
50 INVESTOR MEETING PRESENTATION Product TOMORROW. Our main goals by 2025 SDGs MAIN GOAL STATUS 2019 (Sustainable Development Goals of the United Nations) 100% sustainably sourced cotton 61% ≥ 50% recycled synthetic fibers First update in May 2021 ≥ 30% of offered styles are RESPONSIBLE* ~ 15% As of
Slide 51: People & Society: Responsibility for people we work with
51 INVESTOR MEETING PRESENTATION People & Society Taking responsibility for the people we work with ALWAYS. Our ongoing commitment to motivate employees and take responsibility along the supply chain: Assuming responsibility for employees and suppliers to ensure safe and healthy jobs. Developing tog
Slide 52: People & Society tomorrow: Main goals by 2025
52 INVESTOR MEETING PRESENTATION People & Society TOMORROW. Our main goals by 2025 SDGs MAIN GOAL STATUS 2019 (Sustainable Development Goals of the United Nations) 75 % employee satisfaction according to the Great Place to Work® survey 70% All goods sourced from suppliers with satisfying or better p
Slide 53: Environment: Reducing our environmental impact
53 INVESTOR MEETING PRESENTATION Environment Reducing our environmental impact ALWAYS. Our ongoing commitment to reduce our environmental impact while saving costs: We continuously minimize our impacts on climate change, reduce the consumption of resources and use chemicals responsibly. TODAY. We sa
Slide 54: Environment tomorrow: Main goals
54 INVESTOR MEETING PRESENTATION Environment: TOMORROW. Our main goals SDGs MAIN GOAL STATUS 2019 (Sustainable Development Goals of the United Nations) Climate neutrality in the whole value chain until 2050 Scope 1+2: Reduction of 24% Reduction of CO2 emissions in the whole value Scope 3: Reduction
Slide 55: Sustainability achievements recognized in indices
55 INVESTOR MEETING PRESENTATION DJSI World FTSE4Good DJSI Europe Index member since Index member since 2016 2017 (World) & 2020 (Europe) STOXX Global Euronext Vigeo ESG Leaders Europe 120 DAX 50 ESG Eurozone 120 Leaders Index member since 2020 Index member since 2019 HUGO BOSS sustainability achiev
Slide 56: Financial Calendar & Investor Relations contact
56 INVESTOR MEETING PRESENTATION Financial Calendar & Investor Relations contact MAY Christian Stöhr 5 First Quarter Results Senior Head of E-Mail: Christian_Stoehr@hugoboss.com 2021 Investor Relations 2021 Phone: +49 (0) 7123 94 - 80903 MAY Frank Böhme 11 Annual Shareholders’ Senior Investor Relati
Slide 57: Forward-looking statements contain risks
57 INVESTOR MEETING PRESENTATION 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”, “s