Hugo Boss AG · XETR:BOSS
Hugo Boss — Investor Presentation (December 2004)
39 slides from Hugo Boss's investor presentation, December 2004
Slide 1: HUGO BOSS Company Presentation December 2004
HUGO BOSS Company Presentation December 2004 Seite 1
Slide 2: Agenda
Page HUGO BOSS at a glance 4 The BOSS Brand 11 The HUGO Brand 18 The BALDESSARINI Brand 21 Financial Developments Q1 – Q3 2004 25 Appendix 35 Seite 2
Slide 3: HUGO BOSS Headquarter Metzingen / Germany
HUGO BOSS Headquarter Metzingen / Germany Seite 3
Slide 4: HUGO BOSS at a glance
HUGO BOSS at a glance • HUGO BOSS products value at retail level more than 3 billion EUR (thereof fragrances 750 Mill.) • Market presence in 102 countries with 3,600 customers and more than 5,000 Points of Sale • Market leadership with BOSS Man in high-end men’s fashion • Fast growing in high-end wo
Slide 5: Net Sales Share - By Business Region
Net Sales Share - By Business Region 2004FC Net Sales: >1.100 EUR Mill. Other Countries* Royalties C. / S. America 3% + other sales 1% 4% Germany 26% North America 15% Asia 7% C. / E. Europe 4% Western Europe excl. Germany 40% * Other Countries: Africa, Australia, Middle East, New Zealand Seite 5
Slide 6: Net Sales Share - By Retail Channel
Net Sales Share - By Retail Channel 2004FC Net Sales: >1.100 EUR Mill. Monobrand Business 33% Directly Operated Stores 9% Franchise 24% Royalties Multibrand 4% Business, others 63% Seite 6
Slide 7: BOSS Man - Business Wear / Casual Wear
BOSS Man - Business Wear / Casual Wear 2004FC Net Sales: >900 EUR Mill. Business Wear Casual Wear 59% 41% BOSS Black/Casual Wear BOSS Selection 19% 1% BOSS Orange 20% BOSS BOSS Green Black/Business 2% Wear 58% Seite 7
Slide 8: HUGO BOSS Shops - by Region
HUGO BOSS Shops - by Region Asia 25% Other Americas Countries* 12% 4% Germany 15% Other European Countries 44% * Other Countries: Africa, Australia, Middle East, New Zealand Seite 8
Slide 9: Vision
Vision Consumers and retailers appreciate HUGO BOSS as the leading international high-end mens-/ womenswear company with an outstanding performance in providing a distinct, innovative fashion statement, communication and value for money strategy We strive to outperform in the areas of • Product Lead
Slide 10: 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 11: The BOSS Brand
HUGO BOSS Seite 11
Slide 12: BOSS Man 2004
BOSS Man 2004 • Net sales > EUR 900 million • Sales split - Business wear 59% (1995: 71%) - Leisure wear 41% (1995: 29%) • 13% worldmarket share in high-end Men‘s Apparel Market • 4,500 Points of Sale in 102 countries • 509 BOSS Man Shops and 53 BOSS Man & Woman Shops in 74 countries • BOSS Shops ac
Slide 13: Casual Wear within BOSS Man
Casual Wear within BOSS Man Black Orange Green Fashion as Modern fashion Fashion for sophisticated casual wear for downtown an active life Smart tailoring mixed with Bridging the gap between Comfortable sportswear with a sportswear to match urban life and streetwise high performance touch the busine
Slide 14: Business Wear within BOSS Man
Business Wear within BOSS Man Black Selection SELECTION Fashion as Fashion as sophisticated casual wear modern luxury Smart tailoring mixed with Dynamic statement combining fine sportswear to match workmanship and sartorial details the business casual trend Seite 14
Slide 15: BOSS Man - Focus on International Business
BOSS 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
Slide 16: BOSS Woman 2004
BOSS Woman 2004 • Net sales ~ EUR 70 million (+35% vs. 2003) • 648 Points of Sale in 58 countries • 84 BOSS Woman Shops and 53 BOSS Man & Woman Shops in 31 countries • BOSS Shops achieve 50% of net sales • Redirection of fashion statement, marketing, fitting, quality, production and logistical struc
Slide 17: BOSS Woman - Focus on International Business
BOSS 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 overal
Slide 18: The HUGO Brand
HUGO BOSS
Slide 19: HUGO 2004
HUGO 2004 • Net sales > EUR 100 million • Sales split - HUGO Man 75% - HUGO Woman 25% • 992 HUGO Man Points of Sale and 360 HUGO Woman Points of Sale in 43 countries • 50 HUGO Shops and presence in 14 HUGO BOSS Shops in 15 countries • HUGO Shops achieve 20% of net sales Seite 19
Slide 20: 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 20
Slide 21: The BALDESSARINI Brand
BOSS HUGO Seite 21
Slide 22: BALDESSARINI 2004
BALDESSARINI 2004 • Net sales ~ EUR 18 million • 127 Points of Sale in 34 countries • 2 BALDESSARINI Shops and presence in 21 BOSS Shops • 40% of net sales achieved in shops Seite 22
Slide 23: 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 23
Slide 24: Financial Developments
Financial Developments Seite 24
Slide 25: Q1 - Q3 2004
HUGO BOSS Q1 - Q3 2004 Seite 25
Slide 26: Key figures – Q1 - Q3 2003/2004
Key figures – Q1 - Q3 2003/2004 Q1 – Q3 Q1 – Q3 Change 2004 2003 in % Sales in EUR mill. 946.9 861.5 10 Operating margin in % 15.2 14.6 Operating result in EUR mill. 144.4 125.4 15 Income before taxes in EUR mill. 138.4 128.1 8 Net income in EUR mill. 95.0 89.0 7 Return on sales in % 10.0 10.3 Seite
Slide 27: Net sales by brand Jan.-Sept.
Net sales by brand Jan. - Sept. Jan. - Sept. Change EUR mill. 2004 2003 in % BOSS 847.0 768.2 10 Man 792.5 729.7 9 Woman 54.5 38.5 42 HUGO 86.5 78.7 10 BALDESSARINI 13.4 14.6 (8) Total 946.9 861.5 10 Seite 27
Slide 28: Net sales by brand 3rd Quarter
Net sales by brand 3rd Quarter 3rd Quarter Change EUR mill. 2004 2003 in % BOSS 352.7 315.2 12 Man 330.2 298.4 11 Woman 22.5 16.8 34 HUGO 34.6 32.6 6 BALDESSARINI 5.4 5.9 (8) Total 392.7 353.7 11 Seite 28
Slide 29: Net sales by region Jan.-Sept.
Net sales by region Jan. - Sept. Jan. - Sept. Change EUR mill. 2004 2003 in % Germany 228.7 208.3 10 Other European countries 450.6 398.8 13 Americas 152.3 136.3 12 Other regions 87.1 77.8 12 Royalties 28.2 40.3 (30) Total 946.9 861.5 10 Seite 29
Slide 30: Net sales by region 3rd Quarter
Net sales by region 3rd Quarter 3rd Quarter Change EUR mill. 2004 2003 in % Germany 90.1 79.7 13 Other European countries 198.9 174.0 14 Americas 59.4 53.1 12 Other regions 34.2 32.3 6 Royalties 10.1 14.6 (31) Total 392.7 353.7 11 Seite 30
Slide 31: Income Statement Jan.-Sept.
Income Statement Jan. - Sept. Jan. - Sept. Change EUR mill. 2004 2003 in % Sales 946.9 861.5 10 Cost of materials incl. changes in inventories (436.0) (406.2) (7) Gross Margin 510.9 455.3 12 in % of sales 54.0 52.8 Other operating income and 1 expenses (193.8) (179.4) (8) 1 Personnel expenses (144.9
Slide 32: Income Statement 3rd Quarter
Income Statement 3rd Quarter 3rd Quarter Change EUR mill. 2004 2003 in % Sales 392.7 353.7 11 Cost of materials incl. changes in inventories (183.9) (166.9) (10) Gross Margin 208.8 186.8 12 in % of sales 53.2 52.8 Other operating income and 1 expenses (68.2) (61.1) (12) 1 Personnel expenses (48.2) (
Slide 33: Analysis of financial requirements
Analysis of financial requirements Sept. 30, Dec. 31, Change EUR mill. 2004 2003 in % 1 Trade receivables and other assets 292.8 222.6 32 Inventories 198.7 214.7 (7) Trade payables and 1 other liabilities (45.2) (53.0) 15 Provisions (115.9) (74.2) (56) Net Current Assets 330.4 310.1 7 2 Receivables
Slide 34: Free Cash Flow
Free Cash Flow Jan. - Sept. Jan. - Sept. Change EUR mill. 2004 2003 in % Net income 95.0 89.0 7 1 Depreciation/Amortization 27.8 25.3 10 Change of pension provisions (6.9) (1.0) Cash Flow 115.9 113.3 2 Net additions to fixed assets (63.9) (23.8) Change in remaining net capital invested (35.5) (36.0)
Slide 35: Appendix
HUGO BOSS Appendix Seite 35
Slide 36: Shareprice development - 01/1999 until 10/2004
Shareprice development - 01/1999 until 10/2004 EUR 40 35 30 25 20 15 10 5 0 31.01.1999 31.01.2000 31.01.2001 31.01.2002 31.01.2003 31.01.2004 preferred shares common shares DAX (indexed for preferred shares, January 1999)
Slide 37: 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 38: Financial Calendar 2004
Financial Calendar 2004 November 4, 2004 Publication of the Third Quarter Report 2004 March 30, 2005 Balance Sheet Press Conference and Analysts’ Meeting May 11, 2005 Annual Shareholders’ Meeting in Stuttgart Seite 38
Slide 39: 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 39