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ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

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Page 1: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial
Page 2: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 2 / 34

ANNUAL SHAREHOLDERS’ MEETING 2014 Claus-Dietrich Lahrs (CEO) Stuttgart, May 13, 2014

Page 3: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34

2013 a year of good strategic and financial progress

565528470

354269

+4%*

2,432

1,729

2,346

2012 2011

2,059

2010

+7%

2013 2009

1,562

EBITDA before special items

Sales Sales and EBITDA before special items (in EUR million)

*+6% fx-adjusted.

Page 4: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 4 / 34

Retail continues to drive Group sales increases

4

2

6

6

4

6

7

10 5 0 (5)

Europe*

Group

Asia/Pacific (2)

Americas

fx-adjusted

in EUR Sales growth by region, y-o-y FY 2013

(in %)

*Incl. Middle East and Africa.

6

4

2

14

2

18

20 15 10 5 0 (5) (10)

Royalties

Wholesale (6)

(7)

Retail

Group

fx-adjusted

in EUR Sales growth by channel, y-o-y FY 2013

(in %)

Page 5: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 5 / 34

Gross profit margin increase supports operating margin expansion

Sales

2,432 EUR million +4%*

Gross profit margin

64.9 %

+330

bp

Operating margin (adjusted)

23.2 %

*+6% fx-adjusted.

Net income

333 EUR million +7%

+70

bp

Page 6: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 6 / 34

Further improvement of balance sheet metrics despite higher investments

■ Own retail expansion

and infrastructure

projects drive increase

Investments (in EUR million)

■ FCF generation and

deconsolidation effects

lead to reduction

Net debt (in EUR million)

185

166

+12%

2013 2012

57

130

(56)%

Dec. 31, 2013 Dec. 31, 2012

■ Increase due to profit

growth and working

capital discipline

230221

+4%

2013 2012

Free cash flow (in EUR million)

Page 7: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 7 / 34

Dividend to grow in line with consolidated net income

*As a percentage of net income attributable to the shareholders of the parent company. // **2013: Dividend proposal.

Proposal in line with dividend policy of 60% to 80% payout of consolidated net profit

0

10

20

30

40

50

60

70

80

903.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

2012

3.12

70%

2011

2.88

70%

2010

2.02

75%

2009

0.96

64%

70%

3.34

2013**

Dividend and payout ratio

in EUR in %*

Page 8: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 8 / 34

Strong performance of HUGO BOSS share

Share price development: December 31, 2012 – December 31, 2013 (Index: December 31, 2012 = 100)

90

100

110

120

130

140

Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Jul-13 Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13

MDAX

DAX

HUGO BOSS

MSCI World Textiles

+30%

+25%

+39%

+25%

Page 9: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 9 / 34

Brand portfolio streamlined and sharpened

fashion

statement casual

urban chic

modern

sophisticated

progressive

contemporary

modern

active

market

segment

luxury

premium

Page 10: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 10 / 34

Retail store universe upgraded and expanded

25

16

15

13

11

2013 2012 2011 2010 2009 BOSS Store, Central Building,

Hong Kong

Number of flagship stores

BOSS Store, Königstrasse,

Stuttgart

Page 11: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 11 / 34

Extended brand control in department stores

Saks 5th Avenue, New York Selfridges, London

Printemps, Paris

Page 12: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 12 / 34

Shop-in-shop takeovers main driver of considerable store count increase

Number of own retail stores as of December 31, 2013 (December 31, 2012: 840)

*Incl. Middle East and Africa.

TOTAL 1,010 (+170) Openings: 206

thereof takeovers: 115

Closings: 36 EUROPE* 576 (+107)

Openings: 118 thereof takeovers: 68

Closings: 11

ASIA/PACIFIC 234 (+10)

Openings: 31 thereof takeovers: 5

Closings: 21

AMERICAS 200 (+53) Openings: 57

thereof takeovers: 42

Closings: 4

Page 13: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 13 / 34

Faster than expected business model transformation

Sales by distribution channel

Wholesale

Retail

Royalties

2009

3%

33%

64%

2011

2%

45%

53%

2012

2%

49%

49%

2013

44%

2%

54%

2010

3%

40%

57%

Page 14: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 14 / 34

Main elements of 2010 growth agenda implemented

BRAND PORTFOLIO

OWN RETAIL

OPERATIONAL PROCESSES

GLOBAL GROWTH

Brand portfolio streamlined and sharpened

Own retail network upgraded and expanded

Further process improvements sustain competitive advantage

Regional exposure more balanced

Page 15: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 15 / 34

New initiatives and areas of growth enhance successful growth strategy

IMPROVING

OPERATIONAL PROCESSES

MAXIMIZING

BRAND ATTRACTIVENESS

LEVERAGING

GLOBAL GROWTH POTENTIAL

GROWING THE

GROUP’S OWN RETAIL BUSINESS

Page 16: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 16 / 34

Emotional strength of the HUGO BOSS brand creates close consumer ties

Page 17: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 17 / 34

Jason Wu has established a clear signature at BOSS Womenswear

Page 18: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 18 / 34

BOSS Womenswear makes impressive debut at New York Fashion Week

BOSS Womenswear Fashion Show, New York

Page 19: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 19 / 34

Womenswear visibility increasing at wholesale and in own retail

BOSS womenswear shop, Printemps Haussmann, Paris

BOSS womenswear shop, Matsuya Ginza, Tokyo

BOSS womenswear floor, Columbus Circle, New York

Page 20: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

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Page 21: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

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Page 22: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

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Page 23: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 23 / 34

Expansion and productivity improvements to drive future retail growth

Stores Europe* 2009: 219

2013: 576

+ 357

Stores Americas 2009: 108

2013: 200

+92

Stores Asia/Pacific 2009: 111

2013: 234

+123

■ Successful exploitation of white space

opportunities

■ Around 50 new store openings expected

in 2014

■ Focus on sales productivity improvements

*Incl. Middle East and Africa.

Page 24: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 24 / 34

Improving frontline execution

■ Superior service levels in line with brand

proposition

■ Focus on ensuring high standards globally

■ Strong emphasis on customer feedback and

constant evaluation

Page 25: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 25 / 34

Omnichannel main strategic focus in coming years

Page 26: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 26 / 34

Rollout of myhugoboss.com started

Page 27: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 27 / 34

Further operational process improvements offer significant long-term potential

■ Retail merchandise planning tool provides

integrated view of sales and inventories

■ Positive impact on full-price sell-throughs

■ Rollout in phases until end of 2015

Page 28: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 28 / 34

Migration to new distribution center according to plan

■ Migration under way and to be completed by

the end of June

■ Shorter time to market

■ Efficiency gains through comprehensive

automation and close upstream integration

Page 29: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 29 / 34

HUGO BOSS expects to grow in all regions

■ Improving sentiment among customers and retail

partners in Europe

■ Positive outlook for the Americas despite

weak start to the year

■ Important investments in retail presence and brand

perception support growth in China and Asia

Page 30: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

Sales

613 EUR million

Gross profit margin

65.4 %

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 30 / 34

Robust own retail sales growth in the first quarter of 2014

+3%*

+360

bp

EBITDA (before special items)

131 EUR million

(1)%

Own retail

323 EUR million +19%*

*+6% fx-adjusted. *Same store sales growth: +6%,

both currency-adjusted.

Page 31: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 31 / 34

Positive outlook for 2014

Growth of EBITDA before special items 10% to 12%

2014 Outlook

Sales growth (currency-adjusted) High single-digit

Capex EUR 110 million - EUR 130 million

Own retail network Around 50 organic openings

Growth of EBITDA before special items High single-digit

Page 32: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 32 / 34

Building the business for long-term sustainable growth

■ 2013 a year of solid financial performance

and good strategic progress

■ Clear plan in place to accelerate growth

in 2014

■ Long-term focus areas defined

■ Brand elevation and emotionalization

■ Omnichannel

■ Retail excellence

Page 33: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial

HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 33 / 34

Thank you very much for your attention.

Page 34: ANNUAL SHAREHOLDERS’ MEETING 2014 - Hugo …...2014/05/13  · HUGO BOSS Annual Shareholders' Meeting HUGO BOSS © May 13, 2014 3 / 34 2013 a year of good strategic and financial