Third Quarter Results German Corporate Conference 2018 HUGO BOSS January

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2 Third Quarter Results 2017 German Corporate Conference 2018 HUGO BOSS January

3 HUGO BOSS records solid sales increase in the third quarter Improved sales momentum in own retail Healthy increases in Europe and China Group Sales (in EUR million) +1 % +3 % fx-adjusted US retail business returns to comp store sales growth Q Q German Corporate Conference 2018 HUGO BOSS January

4 Pace of growth in own retail accelerates Retail Sales* +3 % +6 % fx-adjusted Wholesale Sales* (3) % (1) % fx-adjusted License Sales* +24 % +24 % fx-adjusted Q Q % comp store sales growth driven by all regions Q Q Decline in the Americas partly offset by growth in Europe Q Q Strong fragrance business boosts license sales *in EUR million German Corporate Conference 2018 HUGO BOSS January

5 Sales and earnings increase in the first nine months Group Sales (Jan. - Sep. 2017) Sales by Region (Jan. - Sep. 2017) Mio. EUR +2% +2% fx-adjusted Europe +2% +3% fx-adjusted EBITDA (before special items) 348 Mio. EUR +1% Americas (2)% (3)% fx-adjusted Net income 186 Mio. EUR +43% Asia/Pacific +4% +5% fx-adjusted German Corporate Conference 2018 HUGO BOSS January

6 Group Strategy Update German Corporate Conference 2018 HUGO BOSS January

7 Group strategy focuses on four fields of action D I G I T A L I. REFOCUS THE BRAND III. DRIVE THE DIGITAL TRANS- FORMATION G L O B A L A G I L E II. REFINE THE WAY WE SELL C U S T O M E R - C E N T R I C IV. INNOVATE THE WAY WE OPERATE S U S T A I N A B L E German Corporate Conference 2018 HUGO BOSS January

8 Strategic Fields of Action D I G I T A L I. REFOCUS THE BRAND III. DRIVE THE DIGITAL TRANS- FORMATION G L O B A L A G I L E II. REFINE THE WAY WE SELL C U S T O M E R - C E N T R I C IV. INNOVATE THE WAY WE OPERATE S U S T A I N A B L E German Corporate Conference 2018 HUGO BOSS January

9 Two brands: BOSS and HUGO # T H I S I S B O S S # I A M H U G O TWO BRANDS TWO TARGET CUSTOMERS TWO BRAND IDENTITIES German Corporate Conference 2018 HUGO BOSS January

10 BOSS: Upgrade of casualwear and new interpretation of formalwear Split of BOSS brand sales by segment In EUR billion ~2.0 ~1.4 CAGR +8% 51% 59% CAGR +3% 49% 41% Casualwear Formalwear German Corporate Conference 2018 HUGO BOSS January

11 BOSS: Rebalanced offer takes advantage of BOSS core strength in upper premium Suit offer by price point Based on number of styles offered in France, in % of total >800 26% 23% % 25% % 43% 595 0% Spring/Summer 2017 collection 9% Spring/Summer 2018 collection German Corporate Conference 2018 HUGO BOSS January

12 BOSS Menswear collection spans three wearing occasions B U S I N E S S C A S U A L A T H L E I S U R E DRESSED IMPECCABLY FOR EVERY OCCASION German Corporate Conference 2018 HUGO BOSS January

13 HUGO: Refined brand positioning receives strong feedback German Corporate Conference 2018 HUGO BOSS January

14 Strategic Fields of Action D I G I T A L I. REFOCUS THE BRAND III. DRIVE THE DIGITAL TRANS- FORMATION G L O B A L A G I L E II. REFINE THE WAY WE SELL C U S T O M E R - C E N T R I C IV. INNOVATE THE WAY WE OPERATE S U S T A I N A B L E German Corporate Conference 2018 HUGO BOSS January

15 Three key distribution priorities 1 Increase own retail sales productivity 2 Exploit the full potential of online Further integrate distribution 3 across all channels Retail sales productivity In EUR/m 2 ~13,000 10,900 Better and broader offering at entry price points Expansion of casual and athleisure offering in stores Rollout of omnichannel services Investment in retail staff training Optimization of retail network e 2018e 2019e 2020e 2021e German Corporate Conference 2018 HUGO BOSS January

16 Three key distribution priorities 1 Increase own retail sales productivity 2 Exploit the full potential of online Further integrate distribution 3 across all channels hugoboss.com Fulfillment Partner (insourced in 2016) onlinepureplay.com departmentstore.com C U S T O M E R Social commerce German Corporate Conference 2018 HUGO BOSS January

17 Three key distribution priorities 1 Increase own retail sales productivity 2 Exploit the full potential of online Further integrate distribution 3 across all channels +90% of European retail business omnichannel-enabled German Corporate Conference 2018 HUGO BOSS January

18 Strategic Fields of Action D I G I T A L I. REFOCUS THE BRAND III. DRIVE THE DIGITAL TRANS- FORMATION G L O B A L A G I L E II. REFINE THE WAY WE SELL C U S T O M E R - C E N T R I C IV. INNOVATE THE WAY WE OPERATE S U S T A I N A B L E German Corporate Conference 2018 HUGO BOSS January

19 Digital transformation comprises the entire value chain Product & collection development Sourcing and production Distribution and logistics Own retail and wholesale distribution German Corporate Conference 2018 HUGO BOSS January

20 Product and collection development Sourcing and production Distribution and logistics Sales New store concepts create strong link between physical and digital retailing German Corporate Conference 2018 HUGO BOSS January

21 Strategic Fields of Action D I G I T A L I. REFOCUS THE BRAND III. DRIVE THE DIGITAL TRANS- FORMATION G L O B A L A G I L E II. REFINE THE WAY WE SELL C U S T O M E R - C E N T R I C IV. INNOVATE THE WAY WE OPERATE S U S T A I N A B L E German Corporate Conference 2018 HUGO BOSS January

22 Digital showroom development demonstrates adoption of new ways of working Strict focus on customer value Delegation of decision making power Use of Scrum methodology German Corporate Conference 2018 HUGO BOSS January

23 Speed drives commercial success Replenish sold-out bestsellers in-season Adjust collection content based on short-term trends Become more flexible in our approach towards seasons Demand-driven supply Supplement the regular collection development process with a fast track concept which reduces the time to market to weeks rather than months German Corporate Conference 2018 HUGO BOSS January

24 New Chief Financial Officer Yves Müller took office in December 2017 Responsibilities / / Controlling, Finance, Central Services, Investor Relations and IT : CFO at Tchibo : Head of group accounting and IT at Tchibo : Auditor at Arthur Andersen German Corporate Conference 2018 HUGO BOSS January

25 Operating profit to remain on prior year level in 2017 Sales* Gross profit margin Low single-digit percentage rate increase Slight increase EBITDA before special items Consolidated net income Capital expenditure Free cash flow Largely stable Low double-digit percentage rate increase EUR 130 million to EUR 150 million Increase to around EUR 250 million Specification *on a currency-adjusted basis German Corporate Conference 2018 HUGO BOSS January

26 Preliminary results reported yesterday underpin strong sales momentum Sales growth by region, y-o-y (in %, fx-adjusted) Q FY 2017 Q4 retail comp store sales up 7% on prior year, online sales up 42% Europe* 1 2 U.S. sales grow at double-digit rate in Q4, Great Britain and China also continue to grow strongly Full year 2017 operating profit (EBITDA before special items) expected to be on previous year s level (2016: EUR 493 million) Americas Asia/Pacific Group *Incl. Middle East and Africa German Corporate Conference 2018 HUGO BOSS January 2018

27 Strategy execution will drive profitable and sustainable growth Profitable and sustainable growth Stabilization 2017 Sales up 3% based on preliminary results, operating profit stable Acceleration 2018 Grow sales and operating profit Grow sales stronger than market, increase operating profit stronger than sales German Corporate Conference 2018 HUGO BOSS January

28 HUGO BOSS will further strengthen its position in the premium apparel industry BOSS and HUGO will outgrow their respective market segments Refined strategy will elevate brand desirability and customer experience Agility will become key feature of the operating model German Corporate Conference 2018 HUGO BOSS January

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