Hugo Boss Ag · XETR:BOSS
Hugo Boss — Shareholder Meeting (May 2013)
43 slides from Hugo Boss's shareholder meeting presentation, May 16, 2013
Slide 1: HUGO BOSS
HUGO BOS 5S
Slide 2: Annual Shareholders' Meeting 2013
ANNUAL SHAREHOLDERS’ MEETING 2013 Claus-Dietrich Lahrs (CEO) Stuttgart, May 16, 2013 HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 2 / 43
Slide 3: Agenda
Agenda Operational highlights Financial highlights Strategic initiatives and outlook Summary HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 3 / 43
Slide 4: Agenda
Agenda Operational highlights Financial highlights Strategic initiatives and outlook Summary HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 4 / 43
Slide 5: HUGO BOSS achieves record results
HUGO BOSS achieves record results Sales and EBITDA before special items Sales (in EUR million) EBITDA before special items 3,000 +13% +14%* 2,346 2,059 1,686 1,729 1,562 750 469 529 272 354 269 2008 2009 2010 2011 2012 … 2015e * +10% fx-adjusted. HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS
Slide 6: HUGO BOSS creates new jobs in Germany and worldwide
HUGO BOSS creates new jobs in Germany and worldwide Number of employees at year-end* Worldwide Germany and worldwide Germany 11,852 11,004 9,944 9,593 9,027 2,433 2,152 2,295 2,393 2,110 2008 2009 2010 2011 2012 * according to IAS/IFRS HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16,
Slide 7: Beijing show largest BOSS fashion event ever in Asia
Beijing show largest BOSS fashion event ever in Asia BOSS fashion show, Beijing Fall/Winter 2012 collection HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 7 / 43
Slide 8: BOSS brand grows at double-digit rates across clothing and sportswear
BOSS brand grows at double-digit rates across clothing and sportswear HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 8 / 43
Slide 9: HUGO show highlight of Berlin Fashion Week
HUGO show highlight of Berlin Fashion Week HUGO fashion show, Berlin Fall 2013 collection HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 9 / 43
Slide 10: Womenswear business set for sustainable long-term growth
Womenswear business set for sustainable long-term growth HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 10 / 43
Slide 11: Successful product launches drive fragrance business
Successful product launches drive fragrance business HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 11 / 43
Slide 12: Own retail has grown into the Group's biggest distribution channel
Own retail has grown into the Group’s biggest distribution channel Sales by distribution channel Retail 22% 45% 49% 55% Wholesale 75% 53% 49% 43% … Royalties 3% 2% 2% 2% 2005 2011 2012 2015e HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 12 / 43
Slide 13: Further expansion of the own retail network
Further expansion of the own retail network Number of own retail stores as of December 31, 2012 (December 31, 2011: 622) TOTAL 840 (+218) Openings: 238 thereof takeovers: 116 Closings: 20 EUROPE* 469 (+159) Openings: 166 thereof takeovers: 87 Closings: 7 AMERICAS 147 (+23) ASIA/PACIFIC 224 (+36) Ope
Slide 14: High profile store openings across all continents
High profile store openings across all continents BOSS Store, Brussels, Belgium BOSS Store, Manhasset (NY), USA BOSS Store, Taipei, Taiwan Boulevard de Waterloo Americana Manhasset Taipei 101 Opening: October 2012 Opening: September 2012 Opening: May 2012 Net size: 423 sqm Net size: 272 sqm Net size
Slide 15: Renovations offer attractive potential for productivity uplifts
Renovations offer attractive potential for productivity uplifts BOSS Store, Sydney King Street BOSS Store, London Regent Street BOSS Store, Paris Avenue des Champs-Élysées HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 15 / 43
Slide 16: Agenda
Agenda Operational highlights Financial highlights Strategic initiatives and outlook Summary HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 16 / 43
Slide 17: All regions contribute to Group sales growth in 2012
All regions contribute to Group sales growth in 2012 Sales growth by region, y-o-y in EUR FY 2012 fx-adjusted (in %) 11 Europe* 10 23 Americas 14 14 Asia/Pacific 4 14 Group 10 0 5 10 15 20 25 ■ Sales increase in all European markets ■ Broad-based growth in the U.S. drives performance in the Americas
Slide 18: Robust growth in retail primary driver of Group sales increases
Robust growth in retail primary driver of Group sales increases Sales growth by channel, y-o-y in EUR FY 2012 fx-adjusted (in %) 5 Wholesale 2 24 Retail 19 15 Royalties 15 14 Group 10 0 5 10 15 20 25 ■ Growth in wholesale despite difficult market environment ■ Store expansion and comp store sales gr
Slide 19: Sales and gross margin improvements support net income growth
Sales and gross margin improvements support net income growth in EUR million 2012 2011* Change in % Net sales 2,345.9 2,058.8 14 Gross profit 1,453.2 1,264.8 15 in % of sales Selling and distribution expenses 61.9 (808.8) 61.4 (682.1) 0.5 pp (19) ■ Positive channel mix effects and Administration cos
Slide 20: Operating profit increase and working capital discipline support free cash flow generation
Operating profit increase and working capital discipline support free cash flow generation Investments Free cash flow Net debt (in EUR million) (in EUR million) (in EUR million) +54% +13% (13)% 166 221 149 195 130 108 2011 2012 2011 2012 Dec. 31, 2011 Dec. 31, 2012 ■ Own retail expansion ■ Increase
Slide 21: Dividend proposal of EUR 3.12 per share reflects 70% payout ratio
Dividend proposal of EUR 3.12 per share reflects 70% payout ratio Dividend and payout ratio in EUR in %* 3.50 90 3.12 85% 80 3.00 2.88 75% 70 2.50 70% 70% 64% 60 2.02 2.00 50 1.50 1.37 40 0.96 30 1.00 20 0.50 10 0.00 0 2008 2009 2010 2011 2012** Proposal in line with dividend policy of 60% to 80% pa
Slide 22: HUGO BOSS share price development outperforms the market as a whole
HUGO BOSS share price development outperforms the market as a whole HUGO BOSS Share price development: December 31, 2011 - May 10, 2013 DAX (Index: December 31, 2011 = 100) MDAX 180 160 140 120 100 80 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 M
Slide 23: Agenda
Agenda Operational highlights Financial highlights Strategic initiatives and outlook Summary HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 23 / 43
Slide 24: Continued focus on execution of medium-term strategy
Continued focus on execution of medium-term strategy STRENGTHENING MAXIMIZING OUR CONSUMER FOCUS BRANDS TO DRIVE RETAIL STRIVING FOR EXPLOITING OPERATIONAL GLOBAL EXCELLENCE GROWTH OPPORTUNITIES HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 24 / 43
Slide 25: Strong portfolio of attractive brands
Strong portfolio of attractive brands market segment luxury premium fashion statement casual modern modern progressive urban chic active sophisticated contemporary HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 25 / 43
Slide 26: Integration of BOSS Black and BOSS Selection elevates the core brand
Integration of BOSS Black and BOSS Selection elevates the core brand HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 26 / 43
Slide 27: Womenswear an important growth area
Womenswear an important growth area HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 27 / 43
Slide 28: Dedicated advertising campaign puts womenswear in the spotlight
Dedicated advertising campaign puts womenswear in the spotlight HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 28 / 43
Slide 29: HUGO celebrates 20th anniversary
HUGO celebrates 20th anniversary HUGO 20th anniversary 20 iconic products HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 29 / 43
Slide 30: New BOSS Orange campaign takes consumers on a roadtrip
New BOSS Orange campaign takes consumers on a roadtrip HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 30 / 43
Slide 31: World class golfer Martin Kaymer the face of the BOSS Green campaign
World class golfer Martin Kaymer the face of the BOSS Green campaign HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 31 / 43
Slide 32: Retail to remain the Group's growth engine
Retail to remain the Group’s growth engine Flagships in mega-cities Directly operated stores Controlled space E-Commerce M-Commerce 50 new stores and shop-in-shops to be opened in 2013 HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 32 / 43
Slide 33: New flagship stores define highest level of customer experience
New flagship stores define highest level of customer experience BOSS Store Shanghai, BOSS Store Shanghai, BOSS Store Hong Kong, BOSS Store Hong Kong, Kerry Center APM International Central Building Canton Road BOSS Store Tokyo, BOSS Store Amsterdam, BOSS Store Berlin, BOSS Store Stuttgart, Omotesand
Slide 34: Expansion of concession business model
Expansion of concession business model ■ Successful set-up of concession business model in the last year… … to be further expanded in 2013. HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 34 / 43
Slide 35: Growing significance of online retail
Growing significance of online retail HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 35 / 43
Slide 36: Continuous striving for operational excellence
Continuous striving for operational excellence ■ Continued SAP rollout ■ Implementation of global retail merchandise planning solution ■ Construction of flat-packed goods distribution center on track for 2014 opening HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 36 / 43
Slide 37: Attractive growth potential in all regions
Attractive growth potential in all regions ■ Expansion of own retail and controlled space in multi-brand environments offer growth potential in Europe ■ European lifestyle brand value a solid foundation for further growth in the Americas ■ Focus in Asia on strengthening brand perception and awarenes
Slide 38: HUGO BOSS expects continued top and bottom line increases in 2013
HUGO BOSS expects continued top and bottom line increases in 2013 2013 Outlook Sales growth (currency-adjusted) High single-digit Growth of EBITDA before special items 10% to 12% Growth of EBITDA before special items High single-digit Capex Increase on a comparable basis Own retail network Around 50
Slide 39: Different phasing in wholesale impacts sales and profit development in first quarter
Different phasing in wholesale impacts sales and profit development in first quarter Sales (in EUR million) ■ Group sales decline by 2% as a (2)% result of a different phasing of 607 593 wholesale deliveries ■ Continued double-digit sales growth in own retail ■ Operating profit (EBITDA before Q1 201
Slide 40: Agenda
Agenda Operational highlights Financial highlights Strategic initiatives and outlook Summary HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 40 / 43
Slide 41: 2013 to be another important step towards medium-term goals
2013 to be another important step towards medium-term goals ■ Group prepared to outperform difficult retail environments ■ Proven strategy solid foundation for growth ■ Important progress towards 2015 goals expected HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 41 / 43
Slide 42: Thank you for your attention!
THANK YOU FOR YOUR ATTENTION! HUGO BOSS Annual Shareholders' Meeting 2013 HUGO BOSS © May 16, 2013 42 / 43
Slide 43: HUGO BOSS
HUGO BOS 5S