Hugo Boss Ag · XETR:BOSS

Hugo Boss — H1 2012 Earnings Presentation

38 slides from Hugo Boss's earnings presentation, Jul 31, 2012

  1. Slide 1: HUGO BOSS

    HUGO BOSS

  2. Slide 2: HUGO BOSS First Half Year Results 2012

    HUGO BOSS First Half Year Results 2012 Claus-Dietrich Lahrs (CEO) I Mark Langer (CFO) July 31, 2012 Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 2 / 38

  3. Slide 3: Agenda

    AGENDA OPERATIONAL HIGHLIGHTS FIRST HALF YEAR RESULTS OUTLOOK Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 3 / 38

  4. Slide 4: Agenda

    AGENDA OPERATIONAL HIGHLIGHTS FIRST HALF YEAR RESULTS OUTLOOK Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 4 / 38

  5. Slide 5: Double-digit top and bottom line improvements in the first half year

    Double-digit top and bottom line improvements in the first half year Sales EBITDA before special items (in EUR million) (in EUR million) +16% +16% 1,092 226 945 195 H1 2011 H1 2012 H1 2011 H1 2012 (+12% fx-adjusted) Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 5 / 38

  6. Slide 6: Continued execution of medium-term growth strategy

    Continued execution of medium-term growth strategy STRENGTHENING MAXIMIZING OUR CONSUMER FOCUS BRANDS TO DRIVE RETAIL STRIVING FOR EXPLOITING OPERATIONAL GLOBAL EXCELLENCE GROWTH OPPORTUNITIES Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 6 / 38

  7. Slide 7: Beijing fashion show the largest ever in Asia

    BRANDS Beijing fashion show the largest ever in Asia Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 7 / 38

  8. Slide 8: Actor Chow Yun-Fat becomes new brand ambassador

    BRANDS Actor Chow Yun-Fat becomes new brand ambassador Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 8 / 38

  9. Slide 9: Extensive press coverage lifts brand profile in Asia

    BRANDS Extensive press coverage lifts brand profile in Asia VOGUE Japan Shanghai Style Weekly THE SUN South China Morning Post China Hong Kong Hong Kong Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 9 / 38

  10. Slide 10: 3D live stream turns fashion show into a global event

    BRANDS 3D live stream turns fashion show into a global event Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 10 / 38

  11. Slide 11: HUGO presents new collection in Berlin

    BRANDS HUGO presents new collection in Berlin Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 11 / 38

  12. Slide 12: Full pipeline of new product launches in fragrance business

    BRANDS Full pipeline of new product launches in fragrance business Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 12 / 38

  13. Slide 13: Own retail network grows by 87 to 709 stores

    RETAIL Own retail network grows by 87 to 709 stores Number of own retail stores as of June 30, 2012 (December 31, 2011: 622): EUROPE* 372 (+62) TOTAL 709 (+87) Openings: 65 Openings: 98 thereof takeovers: 37 Closings: 11 Closings: 3 ASIA/PACIFIC 207 (+19) AMERICAS 130 (+6) Openings: 25 Openings: 8 t

  14. Slide 14: Taipei 101 new flagship location in Taiwan

    RETAIL Taipei 101 new flagship location in Taiwan BOSS Store // Taipei 101 Taipei, Taiwan Opening: May 2012 Net size: 233 sqm Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 14 / 38

  15. Slide 15: New store opening in prestigious China World Mall in Beijing

    RETAIL New store opening in prestigious China World Mall in Beijing BOSS Store // China World Mall Beijing, China Opening: April 2012 Net size: 344 sqm Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 15 / 38

  16. Slide 16: Renovated Paris store elevates customer experience

    RETAIL Renovated Paris store elevates customer experience Flagship Store // Champs Elysées Paris, France Re-Opening: June 2012 Net size: 1,229 sqm Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 16 / 38

  17. Slide 17: Europe – Wholesale business drives growth acceleration

    Europe – Wholesale business drives growth acceleration GLOBAL GROWTH Sales (in EUR million) ■ UK, Germany and Benelux all 267 576 652 increasing at double-digit rates 225 ■ Resilient performance in Southern Q2 2011 Q2 2012 H1 2011 H1 2012 Europe in euro Sales growth (in %) fx adjusted Q2 2012 H1 201

  18. Slide 18: Americas – Continued double-digit sales increases

    Americas – Continued double-digit sales increases GLOBAL GROWTH Sales (in EUR million) ■ Further market share gains in US 126 248 wholesale business 103 205 ■ Ongoing positive consumer sentiment Q2 2011 Q2 2012 H1 2011 H1 2012 promises continued growth in second half year Sales growth (in %) in euro

  19. Slide 19: Asia/Pacific – Shaky consumer environment in China affects growth

    Asia/Pacific – Shaky consumer environment in China affects growth GLOBAL GROWTH Sales (in EUR million) ■ Currency-adjusted sales in China 81 168 68 143 increase 7% in first half year ■ Cautious consumer sentiment impacts Q2 2011 Q2 2012 H1 2011 H1 2012 store traffic in euro Sales growth (in %) fx ad

  20. Slide 20: SAP rollout in China JV improves operational infrastructure

    SAP rollout in China JV improves operational infrastructure OPERATIONS ■ Closer integration of JV operations under way ■ SAP rollout finished at the end of June ■ Increases transparency and efficiency of key operational processes Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 201

  21. Slide 21: Agenda

    AGENDA OPERATIONAL HIGHLIGHTS FIRST HALF YEAR RESULTS OUTLOOK Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 21 / 38

  22. Slide 22: New collection cycle and early shipments support Q2 wholesale sales

    New collection cycle and early shipments support Q2 wholesale sales Sales growth by channel, y-o-y in euro Sales growth by channel, y-o-y in euro Q2 2012 fx adjusted H1 2012 fx adjusted (in %) (in %) 15 7 Wholesale Wholesale 10 4 23 26 Retail Retail 16 21 21 18 Royalties Royalties 21 18 20 16 Group

  23. Slide 23: Gross margin progress more than offsets higher operating expenses

    Gross margin progress more than offsets higher operating expenses in EUR million H1 2012 H1 2011 Change in % Net sales 1,092.1 944.6 16 Gross profit 672.9 572.3 18 in % of sales 61.6 60.6 1.0 pp ■ Gross margin up Selling and distribution expenses (380.1) (314.1) (21) 100 bp to 61.6%, mainly due to A

  24. Slide 24: Margin improvement makes Asia the Group's most profitable region

    Margin improvement makes Asia the Group’s most profitable region in EUR million H1 2012 in % of sales H1 2011 in % of sales Change in % Europe* 236.1 36.2 225.3 39.1 5 Americas 64.2 25.9 52.7 25.7 22 Asia/Pacific 61.7 36.6 50.2 35.1 23 Royalties 21.4 89.7 16.8 83.1 27 Segment profit operating segmen

  25. Slide 25: Earlier product shipments inflate growth of trade receivables

    Earlier product shipments inflate growth of trade receivables 492 Inventories June 30, 2012 +17% +9% ■ Continued retail (in EUR million) expansion June 30, 2011 421 fx-adjusted Trade June 30, 2012 213 receivables +45% +38% ■ Timing of deliveries (in EUR million) June 30, 2011 146 fx-adjusted Trade J

  26. Slide 26: Higher investments contribute to net debt increase

    Higher investments contribute to net debt increase Investments Net debt (in EUR million) (in EUR million) +11% +4% 41 289 301 37 H1 2011 H1 2012 June 30, 2011 June 30, 2012 ■ Focus on own retail expansion and ■ Net debt slightly up due to increase renovation in trade net working capital, higher inve

  27. Slide 27: Agenda

    AGENDA OPERATIONAL HIGHLIGHTS FIRST HALF YEAR RESULTS OUTLOOK Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 27 / 38

  28. Slide 28: Solid top and bottom line growth expected for 2012

    Solid top and bottom line growth expected for 2012 2012 Outlook Sales growth (currency-adjusted) Up to 10% Growth of EBITDA before special items 10% to 12% Capex Above prior year level Own retail network Around 70 organic openings Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 20

  29. Slide 29: Streamlined brand architecture strengthens core BOSS brand

    Streamlined brand architecture strengthens core BOSS brand Optimization of brand architecture… …to offer numerous benefits ■ BOSS Selection and BOSS Black ■ Overall BOSS offering to benefit to be brought together in core from BOSS Selection’s established BOSS brand credibility in luxury clothing and

  30. Slide 30: Backup

    BACKUP Conference Call, First Half Year Results 2012 HUGO BOSS © July 31, 2012 30 / 38

  31. Slide 31: First half year results at a glance

    FIRST HALF YEAR RESULTS AT A GLANCE Sales Gross margin (in EUR million) (in %) +1.0pp +16% 1.092 60.6% 61.6% 945 H1 2011 H1 2012 H1 2011 H1 2012 EBITDA before special items Net debt (in EUR million) (in EUR million) +16% +4% 226 289 301 195 H1 2011 H1 2012 H1 2011 H1 2012 Conference Call, First Half

  32. Slide 32: Profit & loss statement

    PROFIT & LOSS STATEMENT in EUR million Q2 2012 Q2 2011 Change in % H1 2012 H1 2011 Change in % Net sales 485.4 405.4 20 1,092.1 944.6 16 Cost of sales (173.7) (141.5) (23) (397.8) (355.3) (12) Direct selling expenses (8.9) (6.3) (41) (21.4) (17.0) (26) Gross profit 302.8 257.6 18 672.9 572.3 18 in %

  33. Slide 33: Sales by region

    SALES BY REGION Sales growth by region, y-o-y in euro Sales growth by region, y-o-y in euro Q2 2012 fx adjusted H1 2012 fx adjusted (in %) (in %) 19 13 Europe* Europe* 17 12 22 21 Americas Americas 11 13 18 18 Asia/Pacific Asia/Pacific 4 7 20 16 Group Group 14 12 0 5 10 15 20 25 0 5 10 15 20 25 *inc

  34. Slide 34: Trade net working capital

    TRADE NET WORKING CAPITAL Trade net working capital as a percentage of sales by quarter (in %) 30 29.7 28.5 27.2 25 24.6 +1.5pp 22.7 20.9 20.2 20.8 19.9 19.2 19.1 19.3 19.6 19.9 20 15 10 5 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 20

  35. Slide 35: Retail network

    RETAIL NETWORK Number of own retail stores: +25 -11 +8 709 +65 622 + 2 USA + 11 China + 1 Canada + 3 Japan + 29 Spain + 4 Mexico + 11 Taiwan + 13 France + 1 Brazil + 8 Switzerland + 4 Belgium + 2 Germany + 2 Italy + 2 Netherlands + 2 Portugal + 1 Luxemburg + 1 Poland + 1 Sweden Dec. 31, 2011 Europe*

  36. Slide 36: Financial calendar 2012/2013

    FINANCIAL CALENDAR 2012/2013 Date Event October 30, 2012 Nine Months Results 2012 December 6, 2012 Investor Field Trip, New York City March 14, 2013 Press and Analysts’ Conference May 2, 2013 First Quarter Results 2013 May 16, 2013 Annual Shareholders’ Meeting Conference Call, First Half Year Result

  37. Slide 37: Forward-looking statements contain risks

    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 i

  38. Slide 38: HUGO BOSS

    HUGO BOSS

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