ANNUAL SHAREHOLDERS MEETING 2012 Claus-Dietrich Lahrs (CEO) Stuttgart, May 3, 2012 May 3, 2012 2 / 44
AGENDA OPERATIONAL HIGHLIGHTS 2011 FINANCIAL YEAR OUTLOOK May 3, 2012 3 / 44
AGENDA OPERATIONAL HIGHLIGHTS 2011 FINANCIAL YEAR OUTLOOK May 3, 2012 4 / 44
2011 the best year in history for HUGO BOSS Record financial results Strong momentum across all brands Double-digit sales increases in all regions Profitable retail expansion Successful implementation of Project D.R.I.V.E. May 3, 2012 5 / 44
Record financial results Sales and EBITDA before special items (in EUR million) Sales EBITDA before special items Sales 3,000 3,000 EBITDA 1,000 2,500 750 800 2,059 2,000 1,500 1,632 1,686 1,562 1,729 +19% 469 600 1,000 275 272 267 350 +34% 400 500 200 0 2007 2008 2009 2010 2011 2015e 0 May 3, 2012 6 / 44
Number of employees increases due to positive business development Number of employees at year end Germany* and worldwide 12,000 11,004 10,000 9,123 9,593 9,027 9,944 8,000 6,000 Germany worldwide 4,000 2,000 2,347 2,433 2,152 2,110 2,295 0 2007 2008 2009 2010 2011 * according to IAS/IFRS May 3, 2012 7 / 44
BOSS Selection New direction receives strong customer support Sales increase by 43% in 2011 Distinct brand identity across clothing and sportswear Strengthens luxury brand perception in key growth markets Important halo effect for entire brand portfolio Pitti Uomo // Florence, Italy May 3, 2012 8 / 44
BOSS Selection Made to Measure underlines unrivalled tailoring competence May 3, 2012 9 / 44
BOSS Black Momentum in sportswear adds to historical strength in clothing May 3, 2012 10 / 44
BOSS Black Celebrating 30 years of partnership with McLaren May 3, 2012 11 / 44
HUGO Impressive presentation at Berlin Fashion Week HUGO Fashion Show // Berlin, Germany May 3, 2012 12 / 44
BOSS Green Defining premium sportswear Sales increase 50% in 2011 Strongest growing brand within the HUGO BOSS portfolio Successful association with Germany s top golfer Martin Kaymer High credibility in golf & premium sportswear May 3, 2012 13 / 44
BOSS Orange Sharpened brand positioning May 3, 2012 14 / 44
RETAIL Attractive additions to global network BOSS Store // Shenyang, China Opening: November 2011 Net size: 390 m² BOSS Store // Geneva, Switzerland Opening: December 2011 Net size: 475 m² BOSS Store // London Stratford, UK Opening: September 2011 Net size: 458 m² BOSS Store // Huizhou Huamao, China Opening: November 2011 Net size: 250 m² May 3, 2012 15 / 44
RETAIL Global store network grows by 85 to 622 locations in 2011 EUROPE* 310 (+57) Openings: 69 thereof takeovers: 26 Closings: 12 AMERICAS 124 (+11) Openings: 12 Closings: 1 ASIA/PACIFIC 188 (+17) Openings: 33 thereof takeovers: 8 Closings: 16 * incl. Middle East / Africa Number of own retail stores as of December 31, 2011 May 3, 2012 16 / 44
Importance of own retail increases steadily Retail 22% 40% 45% 55% Wholesale 75% 57% 53% 43% Royalties 3% 3% 2% 2% 2005 2010 2011 2015e Sales by distribution channel as a percentage of total sales May 3, 2012 17 / 44
AGENDA OPERATIONAL HIGHLIGHTS 2011 FINANCIAL YEAR OUTLOOK May 3, 2012 18 / 44
SALES Growth in all regions and distribution channels Sales development by region, y-o-y Jan. - Dec. 2011 in Euro fx adjusted Sales development by distribution channel, y-o-y Jan. - Dec. 2011 in Euro fx adjusted Europe* 16% 15% Wholesale 9% 9% Americas 19% 24% Retail 34% 35% Asia/Pacific 34% 34% Royalties 9% 9% Group 19% 19% Group 19% 19% 0% 10% 20% 30% 40% 0% 10% 20% 30% 40% * incl. Middle East / Africa May 3, 2012 19 / 44
INCOME STATEMENT Adjusted EBITDA margin reaches 22.8% 2011 2010 Change in EUR million in % Net sales 2,058.8 1,729.4 19 Gross profit 1,264.8 1,027.2 23 in % of sales 61.4 59.4 2.0 pp Selling and distribution expenses (682.1) (574.4) (19) Administration costs and other operating income and expenses (188.6) (188.8) 0 Operating result (EBIT) 394.1 263.9 49 in % of sales 19.1 15.3 3.8 pp Financial result (11.7) (14.8) 21 Earnings before taxes 382.4 249.2 53 Income taxes (91.4) (59.9) (53) Net income 291.0 189.2 54 Attributable to: Equity holders of the parent company 284.5 185.9 53 Earnings per share (EUR)* Preferred share 4.13 2.70 53 Gross profit margin up 200 bp to 61.4% due to higher share of own retail and consistent pricing strategy Higher selling & distribution expenses driven by own retail expansion and increased marketing expenditures Efficiency improvements support 34% growth of EBITDA before special items EBITDA before special items 469.0 349.8 34 in % of sales 22.8 20.2 2.6 pp * Basic and diluted shares May 3, 2012 20 / 44
NET DEBT Further net debt reduction despite higher investments Investments (in EUR million) Net debt (in EUR million) +95 % -26 % 108 201 56 149 2010 2011 Own retail and infrastructure investments drive growth 2010 2011 Strong profit generation offsets working capital and capex increases May 3, 2012 21 / 44
DIVIDEND Dividend increase proposed Dividend* and payout ratio (in EUR and in % of consolidated net income attributable to equity holders of the parent company) 3.00 Pref.: 2.89 Ord.: 2.88 2.50 2.00 Pref.: 2.03 Ord.: 2.02 1.50 1.00 Preferred shares: 1.46 Ordinary shares: 1.45 Pref.: 1.38 Ord.: 1.37 Pref.: 0.97 Ord.: 0.96 0.50 65% 85% 64% 75% 70% 0.00 2007 2008 2009 2010 2011** Proposal in line with dividend policy to pay out between 60% and 80% of consolidated net income * Excl. special dividend **2011: subject to shareholder approval May 3, 2012 22 / 44
HUGO BOSS shares outperform major indices May 3, 2012 23 / 44
Share class conversion offers many benefits for shareholders Red & Black Free Float * Red & Black Free Float * Red & Black Free Float * 88.02% 11.98% 42.25% 57.75% 65.56% 34.44% Ordinary Shares Preferred Shares Ordinary Shares 35,860,000 34,540,000 70,400,000 HUGO BOSS HUGO BOSS * Includes 1,383,833 treasury shares (528,555 ordinary shares and 855,278 preferred shares) Simplified share structure Increased liquidity Approval from both ordinary and preferred shareholders sought at AGM and separate meeting Benefits Higher index weighting Improved Corporate Governance standards ( one share one vote ) Process Mandatory one-to-one conversion Implementation as soon as possible May 3, 2012 24 / 44
AGENDA OPERATIONAL HIGHLIGHTS 2011 FINANCIAL YEAR OUTLOOK May 3, 2012 25 / 44
Continued focus on execution of medium-term growth strategy MAXIMIZING CONSUMER FOCUS TO DRIVE RETAIL STRENGTHENING INDIVIDUAL BRAND IDENTITIES STRIVING FOR OPERATIONAL EXCELLENCE EXPLOITING GLOBAL GROWTH OPPORTUNITIES May 3, 2012 26 / 44
Investing in our brands: Campaigns May 3, 2012 27 / 44
BOSS Selection Key looks May 3, 2012
BOSS Selection Key looks May 3, 2012
BOSS Selection Key looks May 3, 2012
HUGO HUGO Key looks May 3, 2012 31 / 44
BOSS Green Blurring the boundaries between leisure and golf wear May 3, 2012
BOSS Orange Key Looks May 3, 2012
Investing in our brands: High profile fashion events May 18, 2012: Fashion Show // Beijing, China BOSS Black Menswear BOSS Black Womenswear BOSS Selection Global marketing campaign in online and offline media Internet live stream using innovative 3D technology National Agriculture Exhibition Centre // Beijing, China May 3, 2012 34 / 44
Investing in our brands: Online communication Online Newsletter Blog Mobile Social Media May 3, 2012 35 / 44
Good feedback on womenswear offerings Growth in 2011 driven by all brands Womenswear sales development +9% Fall 2012 first collection designed under new organisational set-up Focus on strengthening BOSS Black sportswear offering Positive retailer feedback on new product initiatives 2010 2011 Share of total sales 11% // Womenswear 89% // Menswear May 3, 2012 36 / 44
Full pipeline of new store projects Flagship Store // Shanghai, China BOSS Store, Columbus Circle // New York, USA (Renovation) Flagship Store, Champs Elysées // Paris, France (Renovation) BOSS Store, Long Island // New York, USA BOSS Store // Taipeh, Taiwan BOSS Store // Sao Paulo, Brazil May 3, 2012 37 / 44
Brand worlds upgrade online shopping experience Online sales increase by 67% to EUR 33 million in 2011 Newly launched monobrand sub-stores elevate consumer experience Further improved usability and navigation Mobile and Swiss online store to launch in first half year 2012 Annual Meeting 2012 HUGO BOSS May 3, 2012 38 / 44
Important investments into the future growth of our business New flat-packed goods distribution center to be built near headquarters Caters to future business growth and improves efficiency of key logistical processes Total expenditures amount to around EUR 100 million Start of operation planned for 2014 May 3, 2012 39 / 44
Attractive growth opportunities in all regions EUROPE* Ongoing good brand momentum in key markets Attractive opportunities from own retail expansion and active space management in wholesale AMERICAS Positive sentiment among key US wholesale partners Brand presentation at retail as good as never before ASIA/PACIFIC Target consumer base continues to grow strongly Impact from increased economic and political uncertainty on consumer confidence difficult to foresee * incl. Middle East / Africa May 3, 2012 40 / 44
HUGO BOSS starts off 2012 with double-digit growth First quarter Group sales increase 10% on a currency-adjusted basis Again positive development in all regions and distribution channels Operating result (EBITDA before special items) up 13% First quarter results confirm full year outlook May 3, 2012 41 / 44
Positive 2012 outlook 2012 Outlook Sales growth (currency-adjusted) up to 10% EBITDA Growth growth of EBITDA before before special special items items slightly higher stronger than than sales sales growth Capex above prior year level Own retail network around 50 openings May 3, 2012 42 / 44
SUMMARY HUGO BOSS in good shape for further growth Tremendous growth opportunities with all brands despite economic uncertainties HUGO BOSS able to outperform difficult retail environments Significant investments in the long-term growth of the business Ongoing business model improvements May 3, 2012 43 / 44