Hugo Boss AG · XETR:BOSS

Hugo Boss — Shareholder Meeting (May 2017)

27 slides from Hugo Boss's shareholder meeting presentation, May 23, 2017

  1. Slide 1: HUGO BOSS

    HUGO BOSS

  2. Slide 2: Annual Shareholders' Meeting 2017

    Annual Shareholders’ Meeting 2017 Mark Langer – Chief Executive Officer Stuttgart – May 23, 2017

  3. Slide 3: 2016 – A year of change

    2016 – A year of change HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 3

  4. Slide 4: Luxury apparel market declines in 2016

    Luxury apparel market declines in 2016  Overall positive consumption Luxury apparel market growth* climate does not support (FX-adjusted) industry sales 12%  Apparel is losing share of consumers’ wallet 8% 8%  High level of promotions 2% 2% 2% (4%) 2010 2011 2012 2013 2014 2015 2016 * Source: Bai

  5. Slide 5: HUGO BOSS responded swiftly to challenges

    HUGO BOSS responded swiftly to challenges 1 Comprehensive cost savings achieved 2 Optimization of store network initiated 3 Distribution upgraded in the U.S. 4 Global prices harmonized further 5 Foundation built for future growth in digital HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May

  6. Slide 6: Sales decline weighs on earnings in 2016

    Sales decline weighs on earnings in 2016 Group sales FY 2016 Sales FY 2016 (by region) (4) % (1) % 2,693 EUR million FX-adjusted: (2)% Europe* FX-adjusted: +1% EBITDA (before special items) (17) % (13) % 493 EUR million Americas FX-adjusted: (12)% Net income attributable to equity holders of the par

  7. Slide 7: HUGO BOSS is more profitable than many competitors

    HUGO BOSS is more profitable than many competitors EBITDA margin 2016 before special items ~19%* 18.3% 16.3% 14.5% 13.8% 10.8% Armani HUGO BOSS Ted Baker Ralph Lauren PVH Zegna * 2015. 2016 financials not yet available. HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 7

  8. Slide 8: HUGO BOSS pursues an attractive dividend policy

    HUGO BOSS pursues an attractive dividend policy  One-time effects and strong Dividend per share and payout ratio free cash flow warrant exception from dividend policy (in EUR) (in %**) 4,00 100  Dividend policy of paying out 3,62 3,62 between 60% and 80% of 3,34 93 consolidated net income 3,12 rec

  9. Slide 9: HUGO BOSS share has gained significantly since the beginning of 2017

    HUGO BOSS share has gained significantly since the beginning of 2017 80 12/30/2015: EUR 76.60 70 05/19/2017: EUR 69.86 60 12/30/2016: EUR 58.13 50 (24)% +20% 40 2016 2017 HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 9

  10. Slide 10: Group strategy focuses on four fields of action

    Group strategy focuses on four fields of action DIGITAL III. DRIVE THE I. REFOCUS DIGITAL TRANS- THE BRAND FORMATION GLOBAL AGILE CUSTOMER- CENTRIC II. REFINE THE IV. INNOVATE WAY THE WAY WE SELL WE OPERATE SUSTAINABLE HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 10

  11. Slide 11: Focus on two clearly positioned brands

    Focus on two clearly positioned brands HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 11

  12. Slide 12: BOSS dresses the demanding customer for all wearing occasions

    BOSS dresses the demanding customer for all wearing occasions BUSINESS CASUAL ATHLEISURE (Early) summer 2017: End of 2017: Sell in of Spring/Summer 2018 collection to wholesale partners Spring/Summer 2018 collection in stores HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 12

  13. Slide 13: Womenswear continues to be an important part of HUGO BOSS

    Womenswear continues to be an important part of HUGO BOSS HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 13

  14. Slide 14: HUGO represents an exciting long-term growth opportunity

    HUGO represents an exciting long-term growth opportunity CASUAL BUSINESS HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 14

  15. Slide 15: Uncompromising focus on superior quality

    Uncompromising focus on superior quality  Expansion of suit offering Made in Germany  Better fabrics and trimmings upgrade offering at entry price points  Strict quality controls throughout the entire product life cycle HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 15

  16. Slide 16: Wholesale partners welcome clarity and consistency of brand positioning

    Wholesale partners welcome clarity and consistency of brand positioning  Positive feedback from wholesale partners on refined brand strategy  Order intake for Fall/Winter 2017 in line with expectations, increasing demand in casualwear  Group confirms plans to further align global selling prices H

  17. Slide 17: Target to increase own retail sales productivity by 20% in the next five years

    Target to increase own retail sales productivity by 20% in the next five years Better and broader Expansion of casual Rollout of Investment in retail Optimization of offering at entry price and athleisure omnichannel staff training retail network points offering in stores services HUGO BOSS Annual S

  18. Slide 18: The digitization of the business model continues

    The digitization of the business model continues Enable the cultural transformation Set the foundation Improve performance  Takeover of online  Rollout of omnichannel services fulfillment in Europe  Commercial optimization of  hugoboss.com and iOS hugoboss.com and app app (re)launches Develop th

  19. Slide 19: Cultural change enables organizational agility

    Cultural change enables organizational agility Drive active change Foster entrepreneurial thinking Create cross-functional teams HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 19

  20. Slide 20: HUGO BOSS strengthens sustainability

    HUGO BOSS strengthens sustainability Intensify stakeholder Create transparency dialogue Engage in alliances Expand product sustainability HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 20

  21. Slide 21: Stable operating performance expected in 2017

    Stable operating performance expected in 2017 Sales* Largely stable EBITDA -3% to +3% before special items Increase at low double-digit Consolidated net income percentage rate * FX-adjusted HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 21

  22. Slide 22: First quarter results 2017 in line with full year outlook

    First quarter results 2017 in line with full year outlook Group sales Q1 2017 Sales Q1 2017 (by region) +1 % +2 % 651 EUR million FX-adjusted: +1% Europe* FX-adjusted: +3% EBITDA (before special items) +4 (4) % 97 EUR million % Americas FX-adjusted: (7)% Net income attributable to equity holders of

  23. Slide 23: Important milestones on the return to profitable growth ahead

    Important milestones on the return to profitable growth ahead HUGO BOSS Sell in of Fashion Fashion Wholesale Spring/Summer Stores Show Show 2018 collection Until August 2017 Starting end of 2017 June 2017 July 2017 HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 23

  24. Slide 24: 2017 – A year of stabilization and strategy implementation

    2017 – A year of stabilization and strategy implementation HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 24

  25. Slide 25: Questions & Answers

    Questions & Answers HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS © May 23, 2017 25

  26. Slide 26: Forward looking statements contain risks

    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 expressions

  27. Slide 27: HUGO BOSS

    HUGO BOSS

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