Hugo Boss AG · XETR:BOSS
Hugo Boss — Investor Day (August 2021)
21 slides from Hugo Boss's investor day presentation, Aug 4, 2021
Slide 1: HUGO BOSS
HUGO BOSS
Slide 2: Financial Ambition
FINANCIAL AMBITION YVES MULLER CHIEF FINANCIAL OFFICER HUGO BOSS
Slide 3: Execution of Financial Ambition to Impact Value Creation
HUGO BOSS EXECUTION OF TO IMPACT FINANCIAL AMBITION VALUE CREATION SHIFTS TO ABSOLUTE PROFITABILITY IMPROVEMENTS AND FREE CASH FLOW GENERATION
Slide 4: Ambition: Group Sales CAGR
HUGO BOSS AMBITION [eee 2025 a“ cs GROUP SALES 6% 16% CAGR CAGR 2019 - 2025 2020 - 2025
Slide 5: Growth Ambition by Brand
HUGO BOSS GROWTH SPRUBIES $ €408 AMBITION BY BRAND € 2.9B €1.9B HBBOSS Menswear BOSS Womenswear MHUGO Licenses 2019 2020 2025
Slide 6: Growth Ambition by Channel
HUGO BOSS GROWTH SPM SHEE $ €4.08 AMBITION . BY CHANNEL € 2.9B €1.9B MRetail B&M Mi Wholesale B&M Bi Digital Licenses 2019 2020 2025
Slide 7: Growth Ambition by Region
GROWTH AMBITION BY REGION Hi Europe BAsia/Pacific Hi Americas Licenses GROUP SALES BY REGION HUGO BOSS € 2.9B €1.9B * €4.0B 2019 2020 2025
Slide 8: Bottom-Line Ambition
HUGO BOSS BOTTOM-LINE AMBITION MARGIN ~12% BY 2025 EBIT GROWTH 6% CAGR 2019 - 2025
Slide 9: Bottom-Line Development
BOTTOM-LINE DEVELOPMENT EFFICIENCY GAINS TO COMPENSATE FOR INVEST- MENTS 12% 01 02 03 O04 O5 HUGO BOSS ~ 12% OPERATING MARGIN (IN % OF GROUP SALES) jargin
Slide 10: Optimize the Price-Value Proposition
HUGO BOSS 65% 60-62% OPTIMIZE THE PRICE-VALUE PROPOSITION Gross margin Product. Channel Country Sourcing Gross margin 2019 investments mix mix costs 2025
Slide 11: Marketing and Cost Investments
a >€100m 2019 HUGO BOSS .<100., s 6% OF GROUP ~ © SALES > > 100 BPS VS 2019 2025 T-B%o SEO
Slide 12: Investments 2025 vs. 2019
HUGO BOSS >€ 1 5 0 M ~s § (eae INVESTMENTS 2025 VS. 2019 20% 4% 9.8%" > 400 BPS VS 2019 2025 am 8% Si, s8O¥"
Slide 13: Development of Freestanding Retail Stores
HUGO BOSS +~50 | -~ 100 DEVELOPMENT OF FREESTANDING RETAIL STORES UNTIL 2025 20° 26% Ys” ~ (700) BPS PS 2019 202m 19% iB”
Slide 14: Investments and Cost Savings
HUGO BOSS INVESTMENTS COST SAVINGS 209 16% Fe” ~ (200) BPS VS 2019 2025 mw 14% 9S"
Slide 15: Capital Expenditure
CAPITAL EXPENDITURE 08 07 06 05 04 03 2019 2020 2021 2022 CAPITAL EXPENDITURE (IN % OF GROUP SALES) 2023 2024 2025 HUGO BOSS TO BE REFRESHED BETWEEN 2022-24
Slide 16: Optimization of TNWC
OPTIMIZATION OF TNWC 28 2019 2020 2021 TNWC (IN % OF GROUP SALES) 2022 2023 2024 2025 HUGO BOSS IMPROVING AVERAGE INVENTORY TURN TO 2019: 1.6x
Slide 17: Free Cash Flow Development
HUGO BOSS ~€ 2. CLAIM 5 LEADING TO — 2021 2025 — GENERATION FREE CASH FLOW DEVELOPMENT (INCL. IFRS 16)
Slide 18: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK INVESTMENTS PAYOUT RATIO 30-50% SPECIAL DIVIDEND SHARE BUYBACK HUGO BOSS TO GROWTH INVESTMENTS AND SHARE- HOLDER RETURNS
Slide 19: Group Ambition Summary 2025
HUGO BOSS GROUP € 4p SALES in 2025 SALES ~ 6% y ] 025 GROWTH CAGR 2019 - 2025 EBIT ~ 12% MARGIN OF GROUP SALES EBIT ~6% GROWTH CAGR 2019 - 2025 FCF ~€2B GENERATION 2021 - 2025
Slide 20: Accelerating Top-Line Growth
Vv Accelerating top-line growth CLAI M =) IS Winning consumers’ minds A G ROWTH & market share PLAN ee Pm Creating long-term shareholder value HUGO BOSS Vv
Slide 21: HUGO BOSS
HUGO BOSS