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Investor DayStrategy update
INVESTOR DAY – STRATEGY UPDATE01
Mark Langer
Chief Executive Officer
November 15, 2018
INVESTOR DAY – STRATEGY UPDATE02
Focus of the Investor Day 2018
3 Mid-term financial outlook
Strategic priorities going forward2
Update on strategic fields of action1
INVESTOR DAY – STRATEGY UPDATE03
Continuous progress instrategy execution
2016 2017 2018
Communication ofnew strategy
Introduce new strategy based on four fields of action
Update onstrategy
Showcase progress ofkey initiatives
Update on strategy and financial outlook
Update on strategy evolution and release of mid-term financial targets
INVESTOR DAY – STRATEGY UPDATE04
Simplification of brand portfolio
Achievements provide solid foundation for future growth
Investments in product quality
Harmonization of global pricing
architecture
Empowerment of digital capabilities
Increase ofretail sales productivity
2.7
2.7
2.8**
2016 2017 2018e
INVESTOR DAY – STRATEGY UPDATE05
* = currency-adjusted
3%*4%*
Sales(In EUR billion)
** = based on consensus
Progress in strategy executiondrives sales growth
INVESTOR DAY – STRATEGY UPDATE06
Casualization of formalwear
Increasing online penetration
Growing focus on personalized product and shopping experiences
3-4%p.a.
Market growthOutlook*
2-3%
2017 2018e-2022e
Overarching industry trends
Market dynamics providesolid base for future growth
* HUGO BOSS estimate of relevant target market growth based on McKinsey/Business of Fashion: Global Fashion Index 2017, Bain/Altagamma: Luxury Spring Update 2017, BCG/Altagamma: The True-Luxury Global Consumer Insight 2017, Euromonitor
CUSTOMER-CENTRICITY IS KEY IN AN EVER CHANGING WORLD
INVESTOR DAY – STRATEGY UPDATE07
INVESTOR DAY – STRATEGY UPDATE08
Customer expectationshave changed
Well informed
Deeply connected with brands
In search of authenticity and meaning
Time-constrained
Always on
More personalization
Fulfilling experiences
Emotional connection
Return on time spent
Instant gratification
The new customer is… …and expects from us
PERSONALIZATION
SPEEDPersonalization and Speed are key to achieving our vision
INVESTOR DAY – STRATEGY UPDATE09
OUR VISION
BE THE MOST DESIRABLE PREMIUM FASHION AND LIFESTYLE BRAND
INVESTOR DAY – STRATEGY UPDATE10
Personalization and Speed are key to achieve our vision
PERSONALIZATION SPEED
INVESTOR DAY – STRATEGY UPDATE11
Personalization: Driving customer engagement
Customer expectations
Fulfilling experiences
Emotional connection
More personalization
Building on our strengths
Growing in-house CRM database
Strong reputation for style advice and fitting
Broad network of own retail stores
Personalized product offering
INVESTOR DAY – STRATEGY UPDATE12
Personalization: Driving customerengagement
INVESTOR DAY – STRATEGY UPDATE13
Speed: Winning customers with industry-leading responsiveness
Customer expectations
Fulfilling experiences
Return on time spent
Instant gratification
Building on our strengths
Robust supply chain
Industry-leading IT and logistic systems
Excellence in product design and development
INVESTOR DAY – STRATEGY UPDATE14
Speed: Winning customers with industry-leading responsiveness
DRIVE THE DIGITAL TRANSFORMATIONREFOCUS THE BRANDS
REFINE THE WAY WE SELL INNOVATE THE WAY WE OPERATE
INVESTOR DAY – STRATEGY UPDATE15
Personalization and Speed are our prioritiesalong the four strategic fields of action
BRAND DESIRABILITY
PERSONALIZATION SPEED
REFOCUS THE BRANDS
Address two distinct customers withBOSS and HUGO
Establish clear and distinct brand values
Create unique product and marketing concepts
DRIVE THE DIGITAL TRANSFORMATION
REFINE THE WAY WE SELL INNOVATE THE WAY WE OPERATE
INVESTOR DAY – STRATEGY UPDATE16
Personalization and Speed are our prioritiesalong the four strategic fields of action
BRAND DESIRABILITY
SPEED
PERSONALIZATION
REFINE THE WAY WE SELL
REFOCUS THE BRANDS DRIVE THE DIGITAL TRANSFORMATION
INNOVATE THE WAY WE OPERATE
Improve retail sales productivity
Exploit full potential of online
Leverage strong opportunity in Asia/Pacific
INVESTOR DAY – STRATEGY UPDATE17
Personalization and Speed are our prioritiesalong the four strategic fields of action
SPEED
PERSONALIZATION
BRAND DESIRABILITY
REFINE THE WAY WE SELL
Digitize key processes
Implement digital functionalities
Leverage advanced analytics
DRIVE THE DIGITAL TRANSFORMATION
REFOCUS THE BRANDS
INVESTOR DAY – STRATEGY UPDATE18
Personalization and Speed are our prioritiesalong the four strategic fields of action
INNOVATE THE WAY WE OPERATE
BRAND DESIRABILITY
SPEEDPERSONALIZATION
Shorten lead times
Implement flexible production processes
Rollout innovative work concepts
INNOVATE THE WAY WE OPERATE
REFOCUS THE BRANDS DRIVE THE DIGITAL TRANSFORMATION
REFINE THE WAY WE SELL
INVESTOR DAY – STRATEGY UPDATE19
Personalization and Speed are our prioritiesalong the four strategic fields of action
SPEEDPERSONALIZATION
BRAND DESIRABILITY
INVESTOR DAY – STRATEGY UPDATE20
PERSONALIZATION SPEED
Personalization and Speed are our prioritiesalong the four strategic fields of action
DRIVE THE DIGITAL TRANSFORMATION
INNOVATE THE WAY WE OPERATE
REFOCUS THE BRANDS
REFINE THE WAY WE SELL
BRAND DESIRABILITY
21 INVESTOR DAY – STRATEGY UPDATE
Key drivers of sales growth and EBIT margin expansion until 2022
* = currency-adjusted
Online
Retail Productivity
HUGO
Asia
Gross Margin Expansion
Efficiency Program
SalesGrowth5-7%
CAGR*
EBITMargin
15%
