Hugo Boss AG · XETR:BOSS
Hugo Boss — Investor Presentation (March 2004)
38 slides from Hugo Boss's investor presentation, March 2004
Slide 1: HUGO BOSS Company Presentation March 2004
HUGO BOSS Company Presentation March 2004 Seite 1
Slide 2: Contents
Page HUGO BOSS at a glance 3 The BOSS Brand 5 The HUGO Brand 11 The BALDESSARINI Brand 14 Vision and Core Competencies 17 Financial Developments 20 Appendix 34 Seite 2
Slide 3: HUGO BOSS at a glance
HUGO BOSS at a glance - HUGO BOSS products value at retail level more than EUR 3 billion - Our key success factors: - Product leadership - Market intimacy - Operational excellence Seite 3
Slide 4: HUGO BOSS Group
HUGO BOSS Group - Market presence in 108 countries with more than 5,000 Points of Sale - In the 65 top international metropolis we achieve 40% of our BOSS Man business (with 20% of our Points of Sale) - 636 HUGO BOSS Shops in 76 countries achieve 30% of Net Sales by the end of 2003 - Market leadersh
Slide 5: The BOSS Brand
HUGO BOSS
Slide 6: Man at a glance
Man at a glance - BOSS Man sales down by 5% in 2003 (EUR 890 mill.), currency adjusted stable; average growth: 4% in the years to come - Our Top 30 Customers reflect 23% of our total business in 2003 - 4,328 Points of Sale in 108 countries - Net Selling Space in BOSS Shops to be increased - BOSS Sho
Slide 7: Man labels
Man labels Offers smart tailoring and sportswear which naturally fits along the tailored segment Fashion as sophisticated casualwear / informalwear for everyday life Bridges the gap between urban life and streetwise fashion Fashion for downtown with a more relaxed streetwear feeling Stands for moder
Slide 8: Man - Focus on International Business
Man - Focus on International Business 1. Avoiding overexposure of the brand by maintaining the balance between accessibility and exclusivity. 2. Growth rate above market growth. 3. Continue to address the special needs and requirements of the US market. 4. Building up our collections according to th
Slide 9: Woman at a glance
Woman at a glance - BOSS Woman: sales growth of 37% in 2003, currency adjusted: +43%; average growth: 20% in the years to come - Our Top 30 Customers reflect 29% of our total business in 2003 - Net sales in 2003: EUR 51 million (+37% vs. prev. year) - 522 Points of Sale in 58 countries - 72 BOSS Wom
Slide 10: Woman - Focus on International Business
Woman - Focus on International Business 1. Gaining back customer and consumer confidence. 2. Finalizing organizational set-up in 2004. 3. Increasing market share in women‘s apparel. 4. Build-up competence in core-accessories (especially shoes, bags and small leather goods). 5. Optimizing overall col
Slide 11: The HUGO Brand
BOSS HUGO
Slide 12: HUGO at a glance
at a glance - HUGO sales down by 4% in 2003, currency adjusted -1%; average growth: 7% in the years to come - The number of Points of Sale in 2003: 960 - The number of HUGO Shops in 2003: 44 - HUGO Shops (Man & Woman Shops) achieve 19% of HUGO sales in the year 2003 Seite 12
Slide 13: HUGO - Focus on International Business
- Focus on International Business 1. Maintaining the desire in fashion forward segment. 2. Increasing market share in New Menswear Segment. 3. Optimizing overall collection. 4. Maintaining the innovative approach in collection (4 Season Concept), advertising and trade marketing. Seite 13
Slide 14: The BALDESSARINI Brand
HUGO BOSS Seite 14
Slide 15: BALDESSARINI at a glance
at a glance - BALDESSARINI sales down by 8% in 2003, currency adjusted -5%; average growth: 2% in the years to come - The number of Points of Sale in 2003: 131 - The number of BALDESSARINI Shops in 2003: 2 and presence in 21 BOSS Shops Seite 15
Slide 16: BALDESSARINI - Focus on International Business
- Focus on International Business 1. Establish BALDESSARINI as a designer brand. 2. Increase market share in the luxury market. 3. Organisational independence for improved performance in the luxury market. Seite 16
Slide 17: Vision and Core Competencies
Vision and Core Competencies Seite 17
Slide 18: We outperform constantly in the areas of
We outperform constantly in the areas of • Product Leadership - Distinct, innovative fashion statement - Value for money products • Market Intimacy - Strong links to customers in all markets - Know-how, superior business systems and processes to understand and manage the markets • Operational Excell
Slide 19: Key Drivers for Future Growth
Key Drivers for Future Growth Yesterday Tomorrow Menswear Menswear / Womenswear Wholesale Wholesale / Retail Fashion – 2 Seasons Concept Fashion – 4 Seasons Concept / Replenishment Focus on formal wear Build know-how for all textile and accessory product groups Classical preorder / stock business Im
Slide 20: Financial Developments
Financial Developments Seite 20
Slide 21: Net sales development 1990 - 2003
Net sales development 1990 - 2003 EUR mill. 1,400 1,200 1,095 1,093 1,054 1,000 923 753 800 684 581 600 510 486 509 471 438 461 433 400 200 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Development 8% -5% -11% 1% 5% 10% 14% 18% 10% 23% 19% 0% -4% German GAAP (HGB) Internation
Slide 22: Net sales by brand
Net sales by brand Brand Change EUR mill. 2003 2002 in % BOSS 941.0 974.8 (3) Man 890.2 937.8 (5) Woman 50.8 37.0 37 HUGO 94.3 98.2 (4) BALDESSARINI 18.8 20.4 (8) Total 1,054.1 1,093.4 (4) Seite 22
Slide 23: Net sales by region
Net sales by region Sales by Region EUR mill. 2003 2002 Germany 261.4 275.0 (5) (5) Other European countries 451.5 445.4 1 3 Americas 186.7 221.0 (16) 0 Other regions 101.3 87.9 15 27 Royalties 53.2 64.1 (17) (17) Total 1,054.1 1,093.4 (4) 1 Seite 23
Slide 24: Net sales 2003 by regions: Europe
Net sales 2003* by regions: Europe (EUR 713 mill.) Other Western Central / Eastern European Europe Countries EUR 67.5 mill. EUR 45.9 mill. Germany Scandinavia EUR 261.4 mill. EUR 37.5 mill. Benelux EUR 65.6 mill. UK EUR 64.5 mill. Spain France EUR 27.7 mill. Italy EUR 97.0 mill. EUR 45.8 mill. * wit
Slide 25: Net sales 2003 by regions: The Americas
Net sales 2003* by regions: The Americas (EUR 187 mill.) Central / South America EUR 17.7 mill. Canada EUR 36.6 mill. USA EUR 132.4 mill. * without royalties Seite 25
Slide 26: Net sales 2003 by regions: Asia
Net sales 2003* by regions: Asia (EUR 75 mill.) Rest of Asia EUR 17.9 mill. Japan EUR 29.0 mill. South Korea EUR 5.4 mill. Taiwan PR China EUR 5.5 mill. EUR 16.8 mill. * without royalties Seite 26
Slide 27: Net sales 2003 by channel
HUGO BOSS Group Net sales 2003* (EUR 1,001 mill.) by channel: Outlet / VIP EUR 126.3 mill. DOS EUR 82.4 mill. Stock business EUR 133.5 mill. Order business EUR 658.7 mill. * without royalties Seite 27
Slide 28: Licences
Licences Royalties Turnover -17% -10% 583,7 14% in Mio. 523,5 64,1 Textile EUR 10% 20% 53,2 15% 86% 80% 90% Non-textile 85% 2002 2003 2002 2003 Integration of the textile product line: 1. Bodywear Contract termination: April 30, 2003 2. Hosiery Contract termination: June 30, 2003 3. Knitwear Contrac
Slide 29: Net Profit Development 1990 - 2003
Net Profit Development 1990 - 2003 EUR mill. 140 120 108 99 100 82 80 75 56 60 50 42 33 40 27 30 23 25 18 14 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Development 29% 28% 9% 8% 11% 10% 27% 19% 12% 77% 8% -31% 10% Figures 1993, 1996, 2000 and 2001 adjusted for the tax
Slide 30: Profit and Loss Statement
Profit and Loss Statement ! " # $ % &' " # ! " #! $ #! % ! " ( ) * & ' & ( ' " # ! +% , & ! ' ) # % % ) %+ * ' ' * " +' " ( ' " # " , Seite 30
Slide 31: Free Cash Flow Development 1990 - 2003
Free Cash Flow Development 1990 - 2003 EUR mill. Free Cash 80 Flow 61 61 61 60 44 47 40 34 19 23 19 17 18 20 3 0 (3) -20 -40 (47) -60 -80 -100 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 German GAAP (HGB) International Financial Reporting Standards (IFRS) Seite 31
Slide 32: Free Cash Flow
Free Cash Flow & % ! - . / ! ! / + %- ! & & "" # " / ! " / ' , " 0' , / . + %- /1 " " " & & " # % " "! , . + %- ' ' ! "& # 2 '" ' 3 ( Seite 32
Slide 33: Employees by Function
Employees by Function ) % ". 0 # ( 1, 4 , / / 5' ! ' / / * 0% & ( 1, ' $ "' -6 / / 7 - -8 9 / / *" 0% & Seite 33
Slide 34: Appendix
HUGO BOSS Appendix
Slide 35: Share price performance 1999-2003
EUR 40 35 30 25 20 15 10 5 0 1999 2000 2001 2002 2003 preferred shares common shares DAX (indexed for preferred shares, January 1999)
Slide 36: Projections inevitably entail risks
Projections inevitably entail risks Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this report that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is
Slide 37: Financial Calendar 2004
Financial Calendar 2004 April 1, 2004 Balance Sheet Press Conference and Analysts’ Meeting in Metzingen April 29, 2004 Publication of the First Quarter Report 2004 May 18, 2004 Annual General Meeting in Stuttgart July 29, 2004 Publication of the Interim Report 2004 November 4, 2004 Publication of th
Slide 38: HUGO BOSS Webpage - Financial Data
HUGO BOSS Webpage - Financial Data Address Contents Languages Annual Report German Interim Report English Financial Presentations www.hugoboss.com Investor Relations Calendar Stock Prices Press Releases Seite 38