Global Consumer & Retail Conference London // Merrill Lynch HUGO BOSS Company Handout October 1, 2013 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 2 / 54
Agenda Strategy Update First Half Year Results Outlook Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 3 / 54
Agenda Strategy Update First Half Year Results Outlook Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 4 / 54
Ambitious medium-term targets Sales and EBITDA before special items (in EUR million) Sales EBITDA before special items +13% 3,000 +14%* 2,346 2,059 1,686 1,729 1,562 272 269 354 469 529 750 2008 2009 2010 2011 2012 2015e * +10% fx-adjusted. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 5 / 54
Clear focus on execution of medium-term strategy STRENGTHENING OUR BRANDS MAXIMIZING CONSUMER FOCUS TO DRIVE RETAIL STRIVING FOR OPERATIONAL EXCELLENCE EXPLOITING GLOBAL GROWTH OPPORTUNITIES Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 6 / 54
Strong portfolio of attractive brands market segment luxury premium casual urban chic modern active modern sophisticated progressive contemporary fashion statement Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 7 / 54
Integrated BOSS offering hits the stores with Fall 2013 collection Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 8 / 54
Made to Measure demonstrates unrivalled tailoring competence Modern technology and uncompromising quality handmade in Germany Combines excellent craftsmanship, premium materials and tailor made service with efficient industrial manufacturing Permanently offered in several European flagship stores Rollout in Asia and U.S. under way Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 9 / 54
Jason Wu named Artistic Director of BOSS Womenswear Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 10 / 54
Fall advertising campaign captures the BOSS womenswear brand essence Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 11 / 54
HUGO BOSS hosts spectacular fashion show in Shanghai BOSS fashion show, Shanghai Power Station of Art Fall/Winter 2013 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 12 / 54
HUGO celebrates 20 years of innovating and challenging convention Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 13 / 54
Vintage and vision: BOSS Orange embarks upon an epic journey through time and space Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 14 / 54
BOSS Green collection fuses smart sportswear with classic golf style Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 15 / 54
Successful product launches drive fragrance business Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 16 / 54
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 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 17 / 54
Strong focus on profitable retail expansion in all key markets Number of own retail stores as of June 30, 2013 (December 31, 2012: 840) EUROPE* 522 (+53) Openings: 58 thereof takeovers: 35 Closings: 5 TOTAL 901 (+61) Openings: 75 thereof takeovers: 42 Closings: 14 AMERICAS 156 (+9) Openings: 9 thereof takeovers: 6 Closings: - ASIA/PACIFIC 223 (-1) Openings: 8 thereof takeovers: 1 Closings: 9 * incl. Middle East and Africa. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 18 / 54
New flagship stores define highest level of customer experience BOSS Store Shanghai, Kerry Center BOSS Store Shanghai, APM International BOSS Store Hong Kong, Central Building BOSS Store Hong Kong, Canton Road BOSS Store Tokyo, Omotesando BOSS Store Amsterdam, Leidsestraat BOSS Store Berlin, Kurfuerstendamm BOSS Store Stuttgart, Koenigstrasse Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 19 / 54
Renovations offer attractive potential for productivity uplifts BOSS Store, New York Columbus Circle Re-Opening: July 2013 Net size: 1,084 sqm Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 20 / 54
Expansion of concession business model Successful set-up of concession business model in the last year further expanded in 2013. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 21 / 54
Concession business model introduced at Saks BOSS Store Saks 5 th Avenue New York City Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 22 / 54
Franchise business in Singapore taken over in August BOSS Store Ngee Ann City, Takashimaya Singapore Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 23 / 54
Online to account for growing share of retail business Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 24 / 54
Retail to account for at least 55% of Group sales by 2015 Sales by distribution channel Retail 22% 45% 49% 55% Wholesale 75% 53% 49% 43% Royalties 3% 2% 2% 2% 2005 2011 2012 2015e Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 25 / 54
Continuous strive 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 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 26 / 54
Extended brand control to drive growth in Europe Expansion of own retail and controlled space in multi-brand environments Intact growth trends in key European markets Ambitious medium-term expansion plans in Russia BOSS Store, Brussels Boulevard de Waterloo Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 27 / 54
Solid increases expected in America European lifestyle brand value a solid foundation for further growth Breadth of brand portfolio offers attractive opportunities Continuous focus on further enhancement of retail experience BOSS Store, Los Angeles Beverly Center Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 28 / 54
Gradual improvement in China to support better performance in Asia/Pacific Multiple initiatives in place to drive brand perception and awareness in China Brand-building upgrades of Chinese retail network under way Performance in Japan and Australia to improve compared to prior year BOSS Store, Taipei Taipei 101 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 29 / 54
Agenda Strategy Update First Half Year Results Outlook Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 30 / 54
Robust increases in the second quarter drive half year sales and operating profit growth Second quarter results First half year results Sales (in EUR million) EBITDA before special items (in EUR million) Sales (in EUR million) EBITDA before special items (in EUR million) +10% +31% +3% +4% 485 532 102 1,092 1,125 226 234 78 Q2 2012 Q2 2013 Q2 2012 Q2 2013 H1 2012 H1 2013 H1 2012 H1 2013 (+11% fx-adjusted) (+4% fx-adjusted) Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 31 / 54
Continued growth in Europe despite economic headwinds Challenging market environment Ongoing difficult wholesale business despite second quarter sales increase Expansion and takeovers drive strong double-digit increases in retail Sales (in EUR million) 267 302 652 668 Q2 2012 Q2 2013 H1 2012 H1 2013 Sales growth (in %) in EUR fx-adjusted Q2 2013 H1 2013 13 2 14 3 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 32 / 54
Solid sales increases in the Americas Comp store sales growth and targeted store expansion contribute to increases in the U.S. Central and South American business up double-digits Wholesale business grows moderately against a tough comparison base Sales (in EUR million) 126 135 248 263 Q2 2012 Q2 2013 H1 2012 H1 2013 Sales growth (in %) in EUR fx-adjusted Q2 2013 H1 2013 7 6 9 7 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 33 / 54
Gradual improvement in China supports better sales growth in Asia Sales growth in China accelerates in second quarter despite continued weak market environment on the mainland Hong Kong retail business performs strongly Exchange rate effects mask underlying good growth in Japan Sales (in EUR million) 81 83 168 169 Q2 2012 Q2 2013 H1 2012 H1 2013 Sales growth (in %) in EUR fx-adjusted Q2 2013 H1 2013 3 1 7 4 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 34 / 54
Wholesale business returns to growth in the second quarter Sales growth by channel, y-o-y Q2 2013 (in %) in EUR fx-adjusted Sales growth by channel, y-o-y H1 2013 (in %) in EUR fx-adjusted Wholesale Retail Royalties Group 3 3 5 6 10 11 13 15 Wholesale Retail Royalties Group -7-7 5 5 3 4 14 15 0 5 10 15-10 -5 0 5 10 15 Increased importance of Summer collection supports wholesale sales growth in Q2 Continued double-digit growth in own retail supported by 2% comp store sales increase Solid growth of royalties business driven by strong performance in eyewear and fragrances Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 35 / 54
Strong gross margin improvement drives EBITDA margin increase in the first half year in EUR million H1 2013 H1 2012 Change in % Net sales 1,125.2 1,092.1 3 Gross profit 716.8 672.9 7 in % of sales 63.7 61.6 210 bp Selling and distribution expenses (415.6) (380.1) (9) Administration costs and other operating income and expenses (114.3) (104.1) (10) Operating result (EBIT) 186.9 188.7 (1) in % of sales 16.6 17.3 (70) bp Financial result (11.3) (8.2) (38) Earnings before taxes 175.6 180.5 (3) Income taxes (40.4) (43.3) 7 Net income 135.2 137.2 (1) Attributable to: Equity holders of the parent company 133.8 134.1 0 Earnings per share (EUR)* Ordinary share 1.94 1.94 0 Channel mix as well as positive inventory valuation effects support gross margin increase Own retail expansion main driver of higher selling and distribution expenses Adverse currency movements impact financial result EBITDA before special items 234.3 226.3 4 in % of sales 20.8 20.7 10 bp *basic and diluted earnings per share. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 36 / 54
Significant reduction of trade net working capital position Inventories (in EUR million) June 30, 2013 June 30, 2012 446 492 (9)% (7)% fx-adjusted Strict inventory control in all markets Trade receivables (in EUR million) June 30, 2013 June 30, 2012 226 213 +6% +9% fx-adjusted Expansion of concession business Trade payables (in EUR million) June 30, 2013 June 30, 2012 222 248 +12% +13% fx-adjusted Ongoing effective supplier management Trade net working capital down 12% to EUR 424 million Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 37 / 54
Own retail and infrastructure investments drive capital expenditures Investments (in EUR million) Free cash flow (in EUR million) Net debt (in EUR million) +100% 82 50 (13)% 301 (22)% 43 234 41 H1 2012 H1 2013 Own retail expansion and infrastructure projects drive increase H1 2012 H1 2013 Higher investments offset trade net working capital improvements June 30, 2012 June 30, 2013 Strong reduction due to deconsolidation effects Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 38 / 54
Agenda Strategy Update First Half Year Results Outlook Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 39 / 54
Full year 2013 targets reconfirmed 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 Around EUR 150 million on a comparable basis Own retail network Around 50 net organic openings + around 100 shop-in-shop takeovers Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 40 / 54
HUGO BOSS concentrates on driving healthy, long-term growth Disciplined execution of medium-term strategy key to success Continued focus on further building brand equity Important investments to support longterm, sustainable growth of the business Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 41 / 54
BACKUP Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 42 / 54
Five year overview in EUR million 2012 2011 2010 2009 2008 Earnings Position Sales 2,345.9 2,058.8 1,729.4 1,561.9 1,686.1 Gross Profit 1,453.2 1,264.8 1,027.2 847.1 891.0 EBITDA 525.1 468.0 340.1 235.8 284.2 EBITDA before special items 529.3 469.5 353.7 269.2 272.2 EBIT 433.2 394.6 267.9 157.4 174.8 Net income attributable to equity holders of the parent company 307.4 284.9 188.9 105.5 112.0 Financial Position and Dividend Free cash flow 220.6 194.9 246.3 299.5 48.1 Net debt 130.4 149.1 201.1 379.1 583.2 Capital expenditures 165.8 108.5 55.6 48.3 118.8 Depreciation/amortization 91.9 73.4 72.2 69.1 61.0 Dividend 215.3 199.1 139.7 66.6 94.9 Asset and Liability Structure Total assets 1,584.5 1,425.9 1,342.8 1,065.4 1,161.6 Shareholders' equity 637.9 523.2 361.2 205.5 202.9 Trade net working capital 417.6 407.3 322.7 295.6 458.3 Non-current assets 585.9 501.8 454.5 435.0 463.0 Key Ratios Gross profit margin in % 61.9 61.4 59.4 54.2 52.8 Adjusted EBITDA margin in %* 22.6 22.8 20.5 17.2 16.2 Total leverage** 0.2 0.3 0.6 1.4 2.1 Equity ratio in % 40.3 36.7 26.9 19.3 17.5 * EBITDA before special items/sales * * Net debt/ebitda before special items and expenses for the "Stock Appreciation Rights Program" Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 43 / 54
Profit & loss statement in EUR million Q2 2013 Q2 2012 Change in % H1 2013 H1 2012 Change in % Net sales 531.7 485.3 10 1,125.2 1,092.1 3 Cost of sales (171.9) (173.6) 1 (385.8) (397.8) 3 Direct selling expenses (10.1) (8.9) (13) (22.6) (21.4) (6) Gross profit 349.7 302.8 15 716.8 672.9 7 in % of sales 65.8 62.4 340 bp 63.7 61.6 210 bp Selling and distribution expenses (216.6) (190.9) (13) (415.6) (380.1) (9) Administration costs and other operating income and expenses (57.6) (52.6) (10) (114.3) (104.1) (10) Operating result (EBIT) 75.5 59.3 27 186.9 188.7 (1) in % of sales 14.2 12.2 200 bp 16.6 17.3 (70) bp Net interest income/expense (2.1) (4.1) 49 (5.9) (7.4) 21 Other financial items (4.2) 0.1 <(100) (5.4) (0.8) <(100) Financial result (6.3) (4.0) (59) (11.3) (8.2) (38) Earnings before taxes 69.2 55.3 25 175.6 180.5 (3) Income taxes (15.9) (13.3) (20) (40.4) (43.3) 7 Net income 53.3 42.0 27 135.2 137.2 (1) Attributable to: Equity holders of the parent company 52.2 40.2 30 133.8 134.1 0 Minority interests 1.1 1.8 (41) 1.4 3.1 (54) Net income 53.3 42.0 27 135.2 137.2 (1) Earnings per share (EUR)* Ordinary share 0.76 0.58 31 1.94 1.94 0 EBITDA before special items 101.8 77.9 31 234.3 226.3 4 in % of sales 19.1 16.1 300 bp 20.8 20.7 10 bp *basic and diluted earnings per share. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 44 / 54
Trade net working capital Average trade net working capital as a percentage of sales by quarter (in %) 30 29.7 28.5 27.2 25 20 24.6 20.2 20.8 21.0 (180)bp 20.1 20.0 19.0 15 10 5 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 45 / 54
Retail network Number of own retail stores: 840 +58 + 28 Spain + 14 UK + 3 Austria + 3 France + 3 Switzerland + 2 Italy + 2 Netherlands + 1 Belgium + 1 Germany + 1 Ireland +9 + 9 USA +8 (14) + 3 China + 3 Taiwan + 2 Australia 901 Dec. 31, 2012 Europe* Americas Asia/Pacific Closings June 30, 2013 *Europe incl. Middle East and Africa. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 46 / 54
Segmental reporting Segment profit in EUR million H1 2013 in % of sales H1 2012 in % of sales Change in % Europe* 239.5 35.8 236.1 36.2 1 Americas 63.3 24.1 64.2 25.9 (1) Asia/Pacific 63.5 37.6 61.7 36.6 3 Royalties 20.8 83.2 21.2 88.8 (2) Segment profit operating segments 387.1 34.4 383.2 35.1 1 Corporate units / consolidation 152.8 156.9 (3) EBITDA before special items 234.3 20.8 226.3 20.7 4 Strong retail expansion affects operating margin in Europe Higher markdowns and cost inflation weigh on profitability in the Americas Gross margin improvement and tight cost management drive margin increase in Asia *incl. Middle East and Africa. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 47 / 54
Dividend policy Dividend and payout ratio in EUR 3.50 3.00 2.50 2.00 85% 64% 75% 2.02 2.88 70% 3.12 70% in %* 90 80 70 60 50 1.50 1.37 40 1.00 0.96 30 20 0.50 10 0.00 2008 2009 2010 2011 2012 0 Dividend policy to pay out 60% to 80% of consolidated net profit * As a percentage of net profit attributable to the shareholders of the parent company. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 48 / 54
Shareholder structure* 42% Free float 56% Red & Black Holding GmbH (Permira Ltd.) 2% Treasury shares * As of May 31, 2013. Source: Share register. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 49 / 54
Level I ADR program ADR Details Market OTC Symbol BOSSY CUSIP 444560106 Ratio 5 : 1 Country Germany Effective Date Jan 18, 2013 Underlying SEDOL B88MHC4 Underlying ISIN DE000A1PHFF7 Depositary BNY Mellon Benefits of ADRs for U.S. investors Clear and settle according to normal U.S. standards Offer the convenience of stock quotes and dividend payments in U.S. dollars Can be purchased/sold in the same way as other U.S. stocks via a U.S. broker Provide a cost-effective means of international portfolio diversification For questions about creating HUGO BOSS ADRs, please contact BNY Mellon: New York Ravi Davis email: ravi.davis@bnymellon.com Tel: +1 212 815 4245 London Mark Lewis email: mark.lewis@bnymellon.com Tel: +44 (0)20 7964 6089 Hong Kong Joe Oakenfold email: joe.oakenfold@bnymellon.com Tel: +852 2840 9717 Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 50 / 54
Financial calendar 2013 Date Event October 31, 2013 Nine Months Results November 26, 2013 Investor Day, Hong Kong Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 51 / 54
Investor Relations contact Dennis Weber, CFA Head of Investor Relations Phone: +49 (0) 7123 94-86267 E-Mail: Dennis_Weber@hugoboss.com Internet: www.hugoboss.com Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 52 / 54
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 identify forward-looking statements. Such statements are subject to risks and uncertainties. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made. Global Consumer & Retail Conference // Merrill Lynch HUGO BOSS October 1, 2013 53 / 54