Hugo Boss Ag · XETR:BOSS
Hugo Boss — FY2003 Earnings Presentation
33 slides from Hugo Boss's earnings presentation, Apr 1, 2004
Slide 1: Balance Sheet Press Conference 2004
HUGO BOSS Balance Sheet Press Conference 2004 April 1, 2004
Slide 2: Brands and Markets
HUGO BOSS Dr. Bruno Sälzer Brands and Markets
Slide 3: HUGO BOSS 2003
HUGO BOSS HUGO BOSS 2003 • Net sales EUR 1,054.1 million (-4% vs. prev. year, currency adj. +1%) • Earnings before taxes EUR 120.6 million (+27% vs. prev. year) • Net income EUR 82.4 million (+10% vs. prev. year) • Return on sales after taxes 7.8% (prev. year 6.8%) • Free cashflow EUR 60.5 million (
Slide 4: HUGO BOSS 2003
HUGO BOSS HUGO BOSS 2003 • Year-end (12/31) share price – common share EUR 16.30 (+ 76% vs. prev. year) – preferred share EUR 15.95 (+ 66% vs. prev. year) (DAX increase of +37% vs. prev. year, MDAX increase of +48% vs. prev. year) • Dividend yield* – High 4.4% (prev. year 2.6%) – Low 9.3% (prev. yea
Slide 5: BOSS (Man)
BOSS (Man) • Net sales EUR 890 million (-5% vs. prev. year, currency adj. +/- 0%) • Sales split - Business wear 59% (1995: 71%) - Leisure wear 41% (1995: 29%) • 13% worldmarket share in high-end Men‘s Apparel Market • 4,300 Points of Sale in 108 countries • 475 BOSS Man Shops and 43 BOSS Man & Woman
Slide 6: BOSS (Woman)
BOSS (Woman) • Net sales EUR 51 million (+37% vs. prev. year, currency adj. +43%) • 522 Points of Sale in 58 countries • 72 BOSS Woman Shops and 43 BOSS Man & Woman Shops in 29 countries • BOSS Shops achieve 49% of net sales • Redirection of fashion statement, marketing, fitting, quality, production
Slide 7: HUGO BOSS
HUGO BOSS
Slide 8: BOSS
HUGO BOSS BOSS
Slide 9: BOSS
BOSS
Slide 10: HUGO
HUGO • Net sales EUR 94.3 million (-4% vs. prev. year, currency adj. -1%) • Sales split - HUGO Man 75% - HUGO Woman 25% • 960 HUGO Man Points of Sale and 364 HUGO Woman Points of Sale in 43 countries • 44 HUGO Shops and presence in 6 HUGO BOSS Shops in 14 countries • HUGO Shops achieve 19% of net sa
Slide 11: HUGO
HUGO
Slide 12: Slide 12
Slide 13: BALDESSARINI
BALDESSARINI • Net sales EUR 18.8 million (-8% vs. prev. year, currency adj. -5%) • 131 Points of Sale in 35 countries • 2 BALDESSARINI Shops and presence in 21 BOSS Shops • BOSS/BALDESSARINI Shops achieve 44% of net sales
Slide 14: HUGO BOSS
wuGO BOSS
Slide 15: Sales by brand
HUGO BOSS Sales by brand 2003 2002 Change Change curr. adj. EUR mill. EUR mill. in % in % BOSS 941.0 974.8 (3) 2 Man 890.2 937.8 (5) 0 Woman 50.8 37.0 37 43 HUGO 94.3 98.2 (4) (1) BALDESSARINI 18.8 20.4 (8) (5) Total 1,054.1 1,093.4 (4) 1
Slide 16: Sales by region
HUGO BOSS Sales by region 2003 2002 Change Change 2003 1995 curr. adj. EUR mill. EUR mill. in % in % sales split in % Germany 261.4 275.0 (5) (5) 25 37 Rest of Europe 451.5 445.4 1 3 42 33 Americas 186.7 221.0 (16) 0 18 18 Other regions 101.3 87.9 15 27 10 8 Royalties 53.2 64.1 (17) (17) 5 4 Total 1
Slide 17: Sales trends 2004 by region
HUGO BOSS Sales trends 2004 by region 2004 2003 EUR mill. Germany 261.4 Ò Rest of Europe Ò 451.5 Americas 186.7 Ò Other regions Ò 101.3 Royalties* 53.2 Ó Total Ò 1,054.1 *Due to the integration of the textile product lines
Slide 18: Earnings trends 2004
HUGO BOSS Earnings trends 2004 2004 2003 Mio. EUR Sales Ò 1,054.1 Gross margin Ò 545.3 in % of sales Ò 51.7 Operating result Ò 118.4 Earnings before taxes Ò 120.6 Net income Ò 82.4
Slide 19: Licences
HUGO BOSS Licences Royalties Turnover -17% -10% 583.7 14% 523.5 in Mio. 64.1 Textile EUR 10% 20% 53.2 15% 86% 80% 90% 85% Non-textile 2002 2003 2002 2003 Integration of the textile product line: 1. Bodywear Contract termination: April 30, 2003 2. Hosiery Contract termination: June 30, 2003 3. Knitwe
Slide 20: Berlin
HUGO BOSS Berlin
Slide 21: Number of HUGO BOSS Shops
HUGO BOSS Number of HUGO BOSS Shops 800 696 700 636 97 581 600 81 520 70 500 51 387 400 37 294 Directly operated Shops 300 259 59 9 36 555 Franchise Shops 222 511 35 469 181 200 157 34 3 50 30 16 2 58 224 100 18 8 14 1 151 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004FC
Slide 22: HUGO BOSS Shops by region
HUGO BOSS HUGO BOSS Shops by region 2004FC 2001 2003 2002 2001 Germany 104 97 85 77 Rest of Europe 301 272 242 212 Americas 87 81 96 92 Other regions 204 186 158 139 Total 696 636 581 520 share of net sales in % 33 30 26 25 Thereof HUGO BOSS Shops 97 81 70 51 share of net sales in %* 9 7 6 3 *excl.
Slide 23: Employees - by region
HUGO BOSS Employees - by region Change Average number of employees 2003 2002 in % Germany 1,623 1,572 3 Rest of Europe 2,342 1,928 21 Americas 878 914 (4) Other regions 267 186 44 Total 5,110 4,600 11
Slide 24: Employees - by function
HUGO BOSS Employees - by function Change Average number of employees 2003 2002 in % Production / Logistics 3,226 2,846 13 Sales / Creation 1,424 1,318 8 Administration 460 436 6 Total 5,110 4,600 11
Slide 25: Financials
HUGO BOSS Jörg-Viggo Müller Financials
Slide 26: Net Profit Development 1990 - 2003
HUGO BOSS Net Profit Development 1990 - 2003 EUR mill. 140 120 108 99 100 82 80 75 56 60 50 42 33 40 27 30 23 25 18 14 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Development 29% 28% 9% 8% 11% 10% 27% 19% 12% 77% 8% -31% 10% Figures for 1993, 1996, 2000 and 2001 adjust
Slide 27: Profit and Loss Statement
HUGO BOSS Profit and Loss Statement 2003 2002 Change EUR mill. EUR mill. in % Sales 1,054.1 1,093.4 (4) Gross margin 545.3 567.0 (4) in % of sales 51.7 51.9 Operating result 118.4 115.4 3 Net financial result 1.3 (3.3) Non-recurring and exceptional items 0.9 (17.0) Earnings before taxes 120.6 95.1 2
Slide 28: Analysis of Financial Requirements
HUGO BOSS Analysis of Financial Requirements 2003 2002 Change EUR mill. EUR mill. in % Trade receivables, other assets, 1 balances with factoring companies 222.6 225.0 (1) Inventories 214.7 218.1 (2) Trade payables and other liabilities1 (53.0) (51.6) (3) Provisions (74.2) (87.1) 15 Net current asse
Slide 29: Free Cash Flow
HUGO BOSS Free Cash Flow 2003 2002 Change EUR mill. EUR mill. in % Net income 82.4 74.7 10 1 Depreciation/amortization 32.9 32.2 2 Change of pension provisions (3.4) (1.8) (89) Cash flow 111.9 105.1 6 Capital expenditure (46.3) (68.4) 32 Disposals/exchange rate differences in fixed assets 11.3 16.5
Slide 30: Free Cash Flow Development 1990 - 2003
HUGO BOSS Free Cash Flow Development 1990 - 2003 EUR mill. Free Cash 80 Flow 61 61 61 60 44 47 40 34 19 23 19 17 18 20 3 0 (3) -20 -40 (47) -60 -80 -100 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 German GAAP (HGB) International Financial Reporting Standards (IFRS)
Slide 31: Forecast 2004
HUGO BOSS Forecast 2004
Slide 32: Sales and result forecast 2004
HUGO BOSS Sales and result forecast 2004 • Slight increase in currency-adjusted sales, including the product lines of knitwear, shoes and leather accessories. • Compared to sales, net income should should show a disproportionate rise.
Slide 33: Thank you for your attention!
HUGO BOSS Thank you for your attention!