Contents. to our shareholders. consolidated interim financial statements. consolidated interim management. further information

Transcription

1 First Quarter Report January March 2013

2 Contents 2 Contents 1 to our shareholders Letter to Shareholders p. 4 Key Figures p. 6 HUGO BOSS on the Capital Market p. 7 2 consolidated interim management report Group Sales and Results of Operations p. 11 General Economic Situation p. 11 Sector Performance p. 12 Sales Performance p. 13 Earnings Development p. 17 Profit Development of the Business Segements p. 20 Net Assets and Financial Position p. 24 Balance Sheet Structure and Key Balance Sheet Ratios p. 24 Net Assets p. 25 Financial Position p. 27 Capital Expenditure p. 28 Report on Risks and Opportunities p. 29 Subsequent Events and Outlook p. 30 Summary on Earnings, Net Assets and Financial Position p consolidated interim financial statements Consolidated Income Statement p. 36 Statement of Comprehensive Income p. 37 Consolidated Balance Sheet p. 38 Statement of Changes in Consolidated Equity p. 39 Consolidated Statement of Cash Flows p. 40 Condensed Notes to the Consolidated Interim Financial Statements p further information Forward-Looking Statements p. 54 Financial Calendar 2013 p. 54 Contacts p. 54

3 TO OUR SHAREHOLDERS 1

4 Letter to Shareholders 4 Letter to Shareholders Dear Shareholders, Ladies and Gentlemen, The economic environment remained difficult in the first few months of HUGO BOSS was unable to escape this either. Therefore, in line with our expectations and against the backdrop of a challenging basis for comparison from the previous year, sales and operating profit declined in the first quarter despite double-digit increases in the Group s own retail business. Timing differences in the delivery of collections to wholesale partners had a significantly negative effect on this development. The reluctance of consumers to spend in key sales markets also had an adverse impact, as it did on many of our competitors. In many European markets, persistently recessionary macroeconomic trends are reflected in correspondingly subdued growth rates in our sector. Even in Asia, uncertainty among buyers is perceptible in our market segment. Despite this, we again increased our global comp store sales on a currency-adjusted basis. The trend in sales and earnings in the first quarter is largely attributable to the different timing of product deliveries, which will be reversed during the year. We are confident, most notably because of the expected increase in sales in the wholesale business, that we shall return to our long-term growth course in the second quarter. We shall, of course, continue to counteract the difficult market conditions with a policy of strict cost management. However, at the same time, we shall continue to invest in the attractiveness of our brands and our presentation to customers. In March, for instance, we opened a flagship store in Amsterdam, which will be followed by a number of additional projects in Europe and Asia in the next few months. These flagship stores will shape perception of our brands in the next few years. They create an ideal environment for the presentation of our collections, corresponding to the premium and luxury appeal of our collections. We are also seeing the positive effects of stricter control of our distribution in multi-brand environments. More and more retail partners are transferring responsibility for the HUGO BOSS brand presentation on their floors to us. In the first quarter we thus took over additional shop-in-shops from wholesale partners in Spain and Great Britain. Besides, we shall also manage our business in Singapore, one of the most important growth markets in Asia, independently in future following the takeover of our largest franchise partner s stores in August this year.

5 Letter to Shareholders 5 Ladies and Gentlemen, we expect the market environment to remain challenging over the further course of the year. We shall counteract this challenge by offering convincing collections and attractive shopping experiences. We therefore expect high single-digit increases in sales and operating profit for the year as a whole and see the Group remaining on course to achieve its medium-term targets. Sincerely yours, Claus-Dietrich Lahrs CEO and Chairman of the Managing Board

6 Key Figures 6 Key Figures Jan. March 2013 Jan. March Change in % Sales (2) Sales by segments Europe incl. Middle East and Africa (5) Americas Asia/Pacific (2) Royalties Sales by distribution channel Wholesale (14) Group's own retail business Royalties Results of operations Gross profit (1) Gross profit margin in % bp EBITDA (10) EBITDA before special items (11) Adjusted EBITDA margin in % (220) bp EBIT (14) Net income attributable to equity holders of the parent company (13) Net assets and liability structure as of March 31 Trade net working capital (5) Non-current assets Equity Equity ratio in % Total assets 1, ,453.5 (2) Financial position Free cash flow (29) Net financial liabilities (as of March 31) (12) Capital expenditure >100 Depreciation/amortization Total leverage 3 (as of March 31) (10) Additional factors for success Employees (as of March 31) 11,815 10,986 8 Personnel expenses Number of Group's own retail stores Shares (in EUR) Earnings per share Ordinary share (13) Preferred share 1.37 Last share price (as of March 31) Ordinary share Preferred share Number of shares (as of March 31) Ordinary shares 70,400,000 35,860,000 Preferred shares 34,540,000 1 Certain amounts shown here do not correspond to previous year figures and reflect adjustments made (as detailed in the Condensed Notes to the Consolidated Interim Financial Statements, Note 2 // Accounting policies). 2 EBITDA before special items/sales. 3 Net financial liabilities/ebitda before special items and expenses for the stock appreciation rights program.

7 HUGO BOSS on the Capital Market 7 HUGO BOSS on the Capital Market Following significant gains as of the end of 2012, the German share indices continued to rise in the new year. Above all, improved economic data and monetary policy stimulus from the United States allowed prices to rise despite resurgent concerns over economic stability in the euro zone. The HUGO BOSS share also posted significant share price gains in the first quarter of Share Price Performance 2013 (Index: December 31, 2012 = 100) January February March HUGO BOSS Ordinary Share DAX MDAX Positive performance on stock markets in first quarter After a healthy performance in the closing months of 2012, the German stock indices continued to grow in the first quarter of The avoidance of the fiscal cliff in the U.S., the recovery of global leading indicators and improved economic data from Germany, the U.S. and China supported price increases. As the quarter progressed, however, the markets were repeatedly weighed down by Italy s uncertain political future, the handling of the debt crisis in Cyprus and disappointing economic data from the euro zone. Double-digit increase of the HUGO BOSS share The ordinary share of HUGO BOSS AG began the first quarter of 2013 with price gains. After the positive trend at the end of last year, the share rose again sharply at the start of 2013 and reached a new all-time high of EUR in mid-march. Shortly after the publication of full year results 2012 the share price lost also against the DAX and MDAX. As of the end of the quarter, however, the shares posted renewed price gains and ended the first quarter up 10% as against the end of 2012 at EUR

8 HUGO BOSS on the Capital Market 8 The DAX and, in particular, the MDAX rose in value in the opening months of 2013 as well. Overall, the DAX and the MDAX climbed by 2% and 12% respectively in the first quarter. The shares of companies in the fashion and luxury goods industry also posted gains on average in the first three months of The MSCI World Textile, Apparel & Luxury Goods Index, which tracks the performance of companies operating in the area of apparel and luxury goods, rose by 4% in the first quarter. The performance of HUGO BOSS AG shares in the first quarter was therefore similar to or better than the German benchmark indices and fashion and luxury goods industry shares respectively. Weighting of HUGO BOSS share in MDAX increases In the Deutsche Börse ranking as of the end of March 2013, the HUGO BOSS ordinary share was ranked 15 th in the MDAX on the basis of free float adjusted market capitalization (prior to the consolidation of share classes, the HUGO BOSS preferred share had also ranked 15 th as of the end of March 2012). In terms of trading volume, the HUGO BOSS ordinary share ranked fifth (historic preferred share at the end of March 2012: 21 st ). Thus, at the end of March, the weighting of the HUGO BOSS ordinary share in the MDAX was 2.1% (weighting of the historic preferred share at the end of March 2012: 2.0%). An average of 139,018 ordinary shares were traded per day in the first quarter of The average number of ordinary and preferred shares traded per day in the first quarter of 2012 was 146,767. Voting right notifications in accordance with section 21 WpHG and section 25a WpHG In accordance with section 21 of the Wertpapierhandelsgesetz (WpHG German Securities Trading Act), shareholders are required to report the level of their shareholdings if they exceed or fall below certain thresholds. The reporting thresholds are 3%, 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75%. The Company did not receive any such notifications in the January 1 to March 31, 2013 reporting period. On January 24, 2013, HUGO BOSS AG was informed by Mediobanca Banca di Credito Finanziario S.p.A., Milan, Italy, in accordance with section 25a WpHG that it no longer holds any financial or other instruments that could enable it to acquire voting rights. The Company published this notification verbatim on its website in the Investor Relations section under News and Releases. Shareholder structure unchanged At the end of the first quarter of 2013, the shareholder structure of HUGO BOSS AG was unchanged as against the previous year: 65.56% of shares are held by Permira Holdings Limited through Red & Black Holding GmbH and 1.97% of the shares are held by HUGO BOSS AG as treasury shares. The remaining 32.47% of shares are in free float. Reportable securities transaction in accordance with section 15a WpHG One reportable transaction in shares of the Company was reported to the Company by the Managing Board and the Supervisory Board in the reporting period from January 1 to March 31, In total, members of the Managing Board and the Supervisory Board hold less than 1% of the shares issued by HUGO BOSS AG. Reportable securities transactions are published on the Group s website in the Investor Relations section under News and Releases.

9 HUGO BOSS on the Capital Market 9 Higher dividend per share proposed HUGO BOSS pursues a profit-based dividend policy under which the shareholders participate appropriately in the Group s profit development. Between 60% and 80% of net income is to be distributed to the shareholders on a regular basis. On the basis of the significant increase in profits in fiscal year 2012 and the positive expectations for 2013, the Managing Board and the Supervisory Board intend to propose to the Annual Shareholders Meeting on May 16, 2013 a dividend of EUR 3.12 per ordinary share (2011: EUR 2.88) for fiscal The proposal corresponds to a payout ratio of 70% of net income attributable to the shareholders of the parent company in 2012 (2011: 70%). If the shareholders approve the proposal, the dividend will be paid out on the day following the Annual Shareholders Meeting, i.e. on May 17, Based on the number of shares outstanding at the end of the year, the amount distributed will total EUR 216 million (2011: EUR 199 million).

10 CONSOLIDATED INTERIM MANAGEMENT REPORT 2

11 Group Sales and Results of Operations 11 Group Sales and Results of operations GENERAL ECONOMIC SITUATION Mixed data from the global economy in the first quarter of 2013 Following the perceptible slowdown in the global economy at the end of last year, economic activity has not recovered to any sustainable extent in the first quarter of While economic output in the U.S. posted further moderate growth despite renewed budget cuts in the first quarter, growth rates in China in the first quarter lagged behind those of the previous quarter. In Europe, economic activity is still depressed by the debt crisis. The economic conditions for the HUGO BOSS Group therefore remain challenging. Euro zone still depressed by the debt crisis The euro zone remained in recession in the first quarter of Persistently high unemployment rates, weak industrial production data, subdued private consumption in many places as well as weaker export demand continued to dampen economic growth. The German economy performed comparatively better than the rest of the euro zone. Here, strong data from the construction industry, retail and the export economy was offset by somewhat weaker growth in industrial production. American economy grows moderately The American economy posted further moderate growth in the last quarter despite budget cuts and tax increases. The positive trends continued on the automotive and real estate markets, private consumer expenditure remained stable and the latest employment market data pointed to a slight recovery. Moreover, following the fiscal and political uncertainty at the end of last year, certain investment projects that had been postponed were implemented in the first quarter of Economic activity revived in Latin America in recent months and benefited, among other things, from the delayed impact of previous monetary easing. Patchy economic growth in Asia In Asia, economic activity was mixed in the first quarter of Relatively sound domestic demand was offset by still muted export activity. In China, economic growth at the beginning of the year slowed compared with the previous quarter. Despite the introduction of programs to stimulate the economy, the unstable economic environment at home and abroad depressed both private consumption and industrial production as well as export activities. In Japan, by contrast, the economy has been recovering in the first months of The upward trend was supported by extensive fiscal and monetary policy stimulus measures. Australian economic growth slowed due to weaker demand at home and abroad compared with the previous quarter.

12 Group Sales and Results of Operations 12 SECTOR PERFORMANCE Premium and luxury goods industry outperformed economy as a whole The positive growth trend in the global premium and luxury goods industry continued in the current fiscal year despite difficult economic conditions and a weak consumer environment in many key markets. Overall, the sector posted stronger growth than the economy as a whole. The consumer environment remained difficult in Europe on account of the persistent concern over the future of the euro zone. Robust growth in Eastern European markets partly compensated for weaker performances in Western and most noticeably Southern Europe. In the metropolitan regions of Western and Southern Europe especially, demand from tourists, predominantly from Asia, also supported market growth. In virtually all the region s markets, however, the long winter had a negative impact on demand for clothing. The industry expanded in America thanks to continuing positive consumer sentiment in the relevant market segment. This growth was supported by a stable performance at U.S. department stores and consistently strong consumer demand in South America. Demand for premium and luxury goods products remained subdued in Asia in the first quarter of The consumer environment remained difficult in China, in particular, with Hong Kong performing somewhat better on average than the Chinese mainland.

13 Group Sales and Results of Operations 13 Sales performance Sales development Sales in the first quarter slightly down on the previous year HUGO BOSS generated sales of EUR 593 million in the first three months of fiscal year 2013, which means that sales in Group currency, as in local currencies, were down 2% on the previous year's level (previous year: EUR 607 million). Changes to delivery cycles in preorder business led to a decrease in sales achieved with wholesale partners compared with the same quarter in the previous year. Double-digit sales growth in the Group s own retail business was not sufficient to compensate for this effect entirely. Takeovers of shop-in-shop units previously operated by Wholesale partners produced a shift in sales from wholesale business to the Group s own retail business. SALES BY REGION Jan. March 2013 in % of sales Jan. March 2012 in % of sales Change in % Currency adjusted change in % Europe (5) (5) America Asia/Pacific (2) 1 Royalties TOTAL (2) (2) 1 Including Middle East and Africa. Sales trend shows regional differences Sales in Europe including the Middle East and Africa amounted EUR 367 million and were consequently 5% down on the level of the previous year in both reporting currency and in local currencies (previous year: EUR 385 million). Key factors here were the changes to delivery cycles in the wholesale business, in particular, as well as the long winter. In the Americas, sales in reporting currency increased by 5% year-on-year to EUR 128 million (previous year: EUR 122 million). Sales growth of 6% was posted in local currencies in the first quarter. Continuing positive consumer sentiment in the relevant market segment supported this dynamic performance. After the first three months of fiscal year 2013, sales in Asia/Pacific in reporting currency were down 2% on the previous year's level, at EUR 86 million (previous year: EUR 88 million). This performance reflects the persistently difficult market environment in China in particular. In local currencies, sales rose by 1% as against the same period of the previous year.

14 Group Sales and Results of Operations 14 SALES BY DISTRIBUTION CHANNEL Jan. March 2013 in % of sales Jan. March 2012 in % of sales Change in % Currency adjusted change in % Wholesale (14) (14) Group s own retail business Directly operated stores Outlet Online Royalties TOTAL (2) (2) Changes to delivery cycles and takeovers dominate sales development in the wholesale channel In the first quarter of 2013, sales in the wholesale channel in both reporting currency and in local currencies were down 14% on the level of the previous year and totaled EUR 302 million (previous year: EUR 350 million). Firstly, compared with the same quarter in the previous year, a greater proportion of the current spring collection was delivered to wholesale partners in the fourth quarter of fiscal year 2012 in Europe in particular. Secondly, there is a shift in sales in favor of the second quarter due to the boost to wholesale partners' budget favoring the summer collection delivered in this quarter. The takeover of shop-in-shops previously operated by franchisees, particularly in Spain, Switzerland and China, also caused a shift in sales from the wholesale business towards the Group s own retail business. Replenishment, with which HUGO BOSS can react to short-term surges in demand from trading partners, posted a stable performance in the past quarter. The share of the wholesale channel in sales decreased from 58% in the same period of the previous year to 51% in the reporting period. In the Group s own retail business, double-digit growth rates were achieved in the first three months of fiscal year 2013, as in previous years. The expansion of the store network enhanced by the opening and takeover of new stores and the continuing professionalization of retail activities led to an increase in sales of 14% in reporting currency to EUR 279 million (previous year: EUR 244 million). This is equivalent to a 15% increase in sales after adjustment for currency effects. Sales from the Group s own retail business therefore amounted to 47% of total sales in the reporting period (previous year: 40%). Retail comp store sales increased by 1% year-on-year in Group currency and 2% in local currencies.

15 Group Sales and Results of Operations 15 Sales by retail format Sales from directly operated stores (DOS) increased by 12% to EUR 183 million (previous year: EUR 163 million) and 14% after adjustment for currency effects in the first quarter of fiscal year Therein included are sales of own freestanding stores as well as sales generated with concesseion partners. In the concession model the Group operates self-contained HUGO BOSS shop-in-shop units on the sales floor of the retail partner. Optimization of product arrangement, a raise in service quality and the acceptance of responsibility for the floor's replenishment constitute important leverage for an increase in selling space productivity. With sales growth of 17% in reporting currency to EUR 81 million, outlet stores also contributed to the positive development of sales in the retail channel in the first quarter of fiscal year 2013 (previous year: EUR 70 million). Adjusted for currency effects, this corresponds to an increase of 18%. Sales generated by the Group s own online stores increased by 28% in total in both reporting currency and in local currencies to EUR 14 million (previous year: EUR 11 million). Sales generated by the newly opened online store in China are included therein. NUMBER OF Group'S OWN RETAIL STORES Expansion focused on Europe in the first quarter of 2013 The total number of the Group s own retail stores increased by 36 in net terms to 876 in the first three months of fiscal year 2013 (December 31, 2012: 840). The Group's own retail network was strengthened in particular by the takeover of 31 stores previously operated by wholesale partners. This way, the concession model in Spain could be expanded among other things. In addition, the Group continued its expansion strategy through 14 organic new store openings in the first quarter. This was balanced by nine closings in the same period development OF group's OWN RETAIL STORES December 31, 2012 Europe 1 Americas Asia/Pacific Closings March 31, ( 9) Including Middle East and Africa. In Europe in particular, the retail network was further strengthened by the takeover of 31 shop-in-shop units from wholesale partners as well as through ten new openings. Here, the Group expanded its presence in the Spanish and British markets in particular. Taking into account two closings, there was a net rise in the number of retail stores in Europe of 39 to currently 508 (December 31, 2012: 469). The number of directly operated stores in the Americas rose in the past quarter as a result of the opening of the HUGO store in San Diego to currently 148 stores at the end of the quarter (December 31, 2012: 147).

16 Group Sales and Results of Operations 16 Two new stores in China and an additional store in Australia were added to the store network in Asia/Pacific in the first quarter of fiscal year Taking account of the closure of seven locations in this region, the number of directly operated stores stood at 220 at the end of the quarter (December 31, 2012: 224). ROYALTY SALES Royalty business developed positively in the first quarter of Products manufactured by partners include fragrances, eyewear, watches, children's fashion, motorcycle helmets, cell phones, mobile accessories and home textiles. Sales with external licensees increased by 6% as against the previous year to EUR 13 million (previous year: EUR 12 million). Substantial growth was generated in sales with licensees for fragrances and eyewear in particular. SALES BY BRAND In the first quarter of fiscal year 2013, the core brand BOSS posted a decrease in sales of 1% in comparison with the same period in the previous year. The brands BOSS Green and BOSS Orange were also down on the level of the previous year, by 3% and 10% respectively. By contrast, the brand HUGO posted sales growth of 4% compared to the previous year. In the past quarter, Menswear sales were 2% down on the level of the same period in the previous year and totaled to EUR 532 million (previous year: EUR 542 million). This corresponds to a 90% share of total sales (previous year: 89%). Womenswear sales were 5% down on the level of the same period last year at EUR 62 million (previous year: EUR 65 million). Womenswear sales therefore accounted for 10% of total sales (previous year: 11%).

17 Group Sales and Results of Operations 17 Earnings development Income statement Jan. March 2013 in % of sales Jan. March in % of sales Change in % Net sales (2) Cost of sales (213.9) (36.0) (224.2) (36.9) 5 Direct selling expenses (12.5) (2.1) (12.5) (2.1) 0 Gross Profit (1) Selling and distribution expenses (199.0) (33.5) (189.2) (31.2) (5) Administration costs and other operating income/expenses (56.7) (9.6) (51.5) (8.5) (10) Operating result (EBIT) (14) Interest income/expenses (3.8) (0.6) (3.3) (0.5) (15) Other financial items (1.2) (0.2) (0.9) (0.1) (33) Financial result (5.0) (0.8) (4.2) (0.7) (19) Earnings before taxes (15) Income taxes (24.4) (4.1) (30.0) (4.9) 19 Net income (14) Attributable to: Equity holders of the parent company (13) Non-controlling interests (69) Net income (14) Earnings per share (EUR) 2 Common share (13) Preferred share EBITDA (10) Special items EBITDA (0.1) EBITDA before special items (11) Income tax rate in % Certain amounts shown here do not correspond to previous year figures and reflect adjustments made (as detailed in the Condensed Notes to the Consolidated Interim Financial Statements, Note 2 // Accounting policies). 2 Basic and diluted earnings per share. 3 Preferred shares were converted into ordinary shares on 15 June, 2012 after stock market trading.

18 Group Sales and Results of Operations 18 Notes to the income statement Gross profit margin rises to 61.8% In the first three months of fiscal year 2013, the gross profit margin increased by 80 basis points to 61.8% (previous year: 61.0%). This positive development is mainly due to the expansion of the Group's own retail business and the positive development of the royalty business. Higher discounts in the wholesale business and in the Group s own retail business partly offset this effect. At the end of the first quarter of 2013, with EUR 367 million, the gross profit was almost on the previous year s level (previous year: EUR 370 million).. Expansion of Group's own retail business causes higher distribution expenses At EUR 199 million, selling and distribution expenses were up 5% on the previous year's figure of EUR 189 million in the first three months of fiscal year In relation to sales, selling and distribution expenses rose from 31% to 34%. As a result of the global expansion in the Group's own retail business in particular, distribution expenses increased by EUR 19 million in the first quarter of 2013 and were therefore up 16% on the previous year's level. This includes the additional expenses for net 36 new locations in the reporting period within the global expansion of this distribution channel. Marketing expenses decreased by 14% as a consequence of a modified distribution of the marketing budget over the year. In relation to sales, logistics expenses were reduced from 5% to 4% as against the same period of the previous year. This was aided by the optimization of global warehouse capacity initiated in fiscal year Allowances for doubtful accounts and bad debt losses played only a minor role in the 2013 reporting period thanks to the ongoing systematic receivables management. Administrative costs up year-on-year as a percentage of sales At EUR 57 million, administrative expenses and the balance of other operating income and expenses were up 10% on the previous year's level in the first three months of fiscal year 2013 (previous year: EUR 52 million). In relation to sales, administrative expenses and the balance of other operating income and expenses rose from 8% to 10%. As a result of the increased personnel expenses in particular, the research and development costs incurred to create the collections rose by 11% or EUR 2 million in absolute terms to EUR 16 million (previous year: EUR 14 million). As in the same period of the previous year, special items did not play a role in the reporting period. The internal performance indicator EBITDA before special items decreased by 11% compared to the same period in the previous year to EUR 133 million (previous year: EUR 148 million). The adjusted EBITDA margin fell by 220 basis points year-on-year to 22.3% (previous year: 24.5%). The improvement in the gross profit margin did not fully offset the higher operating expenses in distribution and marketing as well as in administration. Depreciation and amortization increased by 17% as compared to the previous year's level to EUR 21 million (previous year: EUR 18 million). This was due to greater investment intensity for the Group's own retail business. EBIT amounted to EUR 111 million in the first quarter of fiscal year 2013, down 14% on the previous year's figure (previous year: EUR 129 million). As the total of net interest income less other net financial income, the financial result fell by EUR 1 million to EUR 5 million (previous year: EUR 4 million). Net interest expenses rose by 14% compared with the same period in the previous year to EUR 4 million (previous year: EUR 3 million). This is mainly attributable to lower interest income from time deposits because of the low market interest rate. The other financial items amounted to a net expense of EUR 1 million and consequently matched the previous year s figure of a net expense of EUR 1 million.

19 Group Sales and Results of Operations 19 Earnings before taxes thus fell by 15% to EUR 106 million (previous year: EUR 125 million). At 23%, the tax rate was 1% below the previous year's level of 24%. Regionally different profit share of the domestic and foreign subsidiaries of the HUGO BOSS Group in connection with slightly decreasing international corporate tax rates led to a reduction of the Group tax rate. Net income 14% down on the level of the previous year Net income in the first quarter of fiscal year 2013 was 14% down, at EUR 82 million, on the previous year s figure of EUR 95 million. The net income attributable to equity holders of the parent company amounted to EUR 82 million, 13% lower than the previous year's figure (previous year: EUR 94 million). Non-controlling interests fell to EUR 0 million in the same period (2011: EUR 1 million) and primarily related to the 40% share held by the Rainbow Group in the "joint venture" companies in China. Earnings per ordinary share decreased by 13% year-on-year to EUR 1.18 (previous year: EUR 1.36). The conversion of preferred shares into ordinary shares became effective when trading closed on June 15, Since June 18, 2012, the HUGO BOSS shares are traded as registered ordinary shares via the electronic trading system XETRA, on the Frankfurt Stock Exchange and on all regional stock exchanges in Germany under the ticker symbol BOSS. Earnings per preferred share amounted to EUR 1.37 in the previous year.

20 Profit Development of the Business Segments 20 Profit Development of the Business Segments EuropE 02/02 Sales development Europe 02/03 Profit development Europe Jan.-March 2012 Jan.-March 2013 Jan.-March 2012 Jan.-March % - 10 % Sales in Europe including the Middle East and Africa amounted to EUR 367 million in the first quarter of the 2013 fiscal year, down 5% on the previous year s level in both reporting currency and local currencies (previous year: EUR 385 million). Sales performance in Europe impacted by changes in wholesale delivery cycles and long winter At EUR 94 million, sales in Germany were 3% below the previous year s level (previous year: EUR 97 million). The positive performance in the Group s own retail business was unable to fully offset the decline in the wholesale business caused by the change in delivery cycles. In France and Great Britain, meanwhile, the double-digit sales growth in the Group s own retail business compensated for the drop in sales generated with wholesale partners in the first quarter. Thus, sales in France matched the previous year s level at EUR 49 million (previous year: EUR 49 million). In Great Britain as well, sales were on par with the previous year at EUR 46 million (previous year: EUR 46 million). In local currency sales rose by 2% here. In the Benelux countries, sales were down 12% on the level for the same period of the previous year at EUR 42 million (previous year: EUR 48 million). Sales in the Group s own retail business in Europe increased by 19% in the past quarter to EUR 152 million (previous year: EUR 127 million). This corresponds to a rise of 20% in local currencies. Sales with wholesale customers declined by 17% over the same period to EUR 215 million in reporting and local currencies (previous year: EUR 258 million). This development was influenced significantly by the change in delivery cycles in preorder business. Takeovers of shop-in-shop units previously operated by wholesale partners resulted in a shift in sales from the wholesale business towards the Group s own retail business. Segment earnings down on previous year due to higher distribution and marketing expenses The segment profit of EUR 134 million in Europe was 10% below the previous year s level of EUR 149 million. Higher sales deductions especially in the Group's own retail business as well as higher selling and marketing expenses were not fully offset by the rise in the gross profit margin. The adjusted EBITDA margin therefore declined to 36.5% (previous year: 38.6%).

21 Profit Development of the Business Segments 21 Americas 02/04 Sales development Americas 02/05 Profit development Americas Jan.-March 2012 Jan.-March 2013 Jan.-March 2012 Jan.-March % - 8 % In the Americas, sales in reporting currency climbed by 5% year-on-year to EUR 128 million (previous year: EUR 122 million). Sales growth of 6% was generated in local currencies in the first quarter. This dynamic performance was aided by consistently positive consumer sentiment in the relevant market segment. U.S. still Group s largest single market In the U.S., sales rose by 5% in reporting currency and at EUR 97 million were again higher than the previous year s figure (previous year: EUR 93 million). Sales growth of 6% was achieved in local currency. Sales increases on existing retail space and selective new store openings again resulted in double-digit sales growth in the Group s own retail business in the U.S. in the past quarter. Thus, the U.S. held its position as both the Group s largest individual market and the biggest sales market for the Group s own retail business in the first quarter of the 2013 fiscal year. In Canada, sales were down 8% on the level for the same period of the previous year at EUR 17 million (previous year: EUR 18 million). Owing to a challenging market environment, especially in the wholesale channel, sales contracted by 7% year-on-year after adjustment for currency effects. Aided by the general economic recovery, sales in Central and South America rose by 27% in reporting currency to EUR 14 million (previous year: EUR 11 million), with business continuing to develop positively in Brazil in particular. A sales increase of 29% was generated in local currencies as well. Sales in the Group s own retail business increased by 18% in reporting currency in the past quarter to EUR 60 million (previous year: EUR 51 million). Adjusted for currency effects, this corresponds to a growth of 20%. In the wholesale channel, sales of EUR 67 million were generated in the same period (previous year: EUR 71 million). Sales therefore declined by 5% in Group currency and 4% in local currencies. Deterioration in segment profit year-on-year The segment profit of EUR 32 million in the Americas region were 8% below the previous year s level of EUR 35 million. Negative effects from higher sales deductions in wholesale and the Group's own retail business and disproportional rises in fixed costs caused a deterioration in segment profit. After the first three months of 2013, the adjusted EBITDA margin in this region was therefore 25.2% (previous year: 28.6%).

22 Profit Development of the Business Segments 22 Asia/Pacific 02/06 Sales development Asia/Pacific 02/07 Earnings development Asia/Pacific Jan.-March 2012 Jan.-March 2013 Jan.-March 2012 Jan.-March % - 9 % After the first three months of the 2013 fiscal year, sales in Asia/Pacific were 2% below the previous year s level in reporting currency at EUR 86 million (previous year: EUR 88 million). In local currencies, sales rose by 1% as against the same period of the previous year. Slight decline in sales due to persistently challenging market environment Sales in China rose in both reporting currency and local currencies by 1% to EUR 54 million (previous year: EUR 53 million). The consistently difficult consumer environment in China had a tangible impact on sales performance in the first quarter. In Oceania, sales declined by 5% from the previous year s level to EUR 12 million (previous year: EUR 13 million). After currency adjustment, sales declined by 3% due to the persistently challenging market environment. At EUR 10 million, sales in Japan were down 8% on the previous year s level (previous year: EUR 11 million). This development was largely influenced by the depreciation of the Japanese yen against the euro. After adjustment for currency effects, there was a year-on-year increase in sales of 8% driven by the positive performance of the Group s own retail business. In reporting currency, sales in Asia/Pacific in the Group's own retail business climbed by 1% to EUR 67 million (previous year: EUR 66 million). A sales increase of 4% was generated in local currencies. By contrast, sales with wholesale customers were down 9% on the previous year s level in Group currency at EUR 20 million (previous year: EUR 22 million). After currency adjustment, sales fell by 8% as against the figure for the same period of the previous year. Deterioration of segment profit compared to prior year due to higher sales deductions With sales decreasing slightly, segment profit in Asia/Pacific of EUR 30 million was lower than in the previous year (previous year: EUR 33 million). The decline was caused by higher sales deductions in the Group's own retail business as well as slightly increased fixed costs. At 34.9%, the adjusted EBITDA margin in this region was therefore 300 basis points below the previous year s level (previous year: 37.9%).

23 Profit Development of the Business Segments 23 Royalties 02/08 Sales development Royalties 02/09 Earnings development Royalties Jan.-March 2012 Jan.-March 2013 Jan.-March 2012 Jan.-March % - 6 % Royalty business continues positive development Royalty business continued to perform well in the first quarter of Products manufactured by partners include fragrances, eyewear, watches, children s fashion, motorcycle helmets, cell phones, mobile accessories and home textiles. Sales with external licensees increased by 6% as against the previous year to EUR 13 million (previous year: EUR 12 million). In particular, high growth was achieved in sales with licensees for fragrances and eyewear. The successful launch of the fragrance HUGO Red contributed to this development. In spite of a higher gross profit margin, the royalty segment profit was 6% below the previous year s level at EUR 11 million (previous year: EUR 12 million). The result for the first quarter of the 2012 fiscal year included other income generated by the sale of the trademark rights to the Baldessarini fragrance.

24 Net Assets and Financial Position 24 Net Assets and Financial Position Refinancing successfully concluded In February 2013, HUGO BOSS AG tasked a group of banks with setting up a syndicated loan amounting to EUR 450 million, which was signed in March The new syndicated loan is divided into a fixed tranche of EUR 100 million and a revolving tranche of EUR 350 million. The new syndicated loan has a five-year term. The syndicated loan agreement was concluded with an international banking syndicate consisting of 14 banks. The lead managers are UniCredit Bank AG, Landesbank Baden-Württemberg and DZ Bank AG Deutsche Zentrale-Genossenschaftsbank. The new syndicated loan replaces the existing syndicated loan amounting to EUR 450 million, which was repaid prematurely and replaced on March 27. It includes standard covenants requiring compliance with certain performance indicators. As of March 31, 2013 only the fixed tranche of EUR 100 million and EUR 10 million of the revolving tranche of the new syndicated loan had been drawn. Balance sheet structure and key balance sheet ratios Certain amounts shown here do not correspond to the figures reported in previous years and reflect adjustments made. Condensed Notes to the Consolidated Interim Financial Statements, Note 2 // Accounting Policies In the first quarter of fiscal year 2013, total assets declined by 2% to EUR 1,420 million (March 31, 2012: EUR 1,453 million). This change is in particular attributable to significantly lower utilization of external finance as part of the new syndicated loan concluded in March. 02/10 Balance sheet structure - Assets (in %) Assets March March Property, plant and equipment and intangible assets Inventories Trade receivables Other assets 11 Cash and cash equivalents TOTAL Assets 1, , The share of current assets decreased from 66% in the previous year to 58% as of March 31, By contrast, the share of non-current assets rose year-on-year to 42% (March 31, 2012: 34%).

25 Net Assets and Financial Position 25 02/11 balance sheet structure - equity and liabilities (in %) equity and liabilities March March Equity Provisions and deferred taxes 10 Trade payables 13 Other liabilities 8 Financial liabilities TOTAL Equity and liabilities 1, ,419.6 The structure of equity and liabilities also changed as against the previous year. The share of financial liabilities decreased from 26% in the previous year to 13% at the end of the reporting period. This development is predominantly attributable to the repayment of the fixed tranche of the syndicated loan and lower utilization of the credit line of the follow-up financing. By contrast, the share of equity increased. As a consequence of the repayment of the syndicated loan, the equity ratio increased to 52% year-on-year (March 31, 2012: 43%). Net assets Under assets, non-current assets climbed by 21% to EUR 512 million as of the end of the fiscal year (March 31, 2012: EUR 422 million). Investment in the extension of logistics capacity, further expansion and modernization of the Group s own retail business as well as the construction of an administrative building at the Metzingen location. Decrease in inventories essentially driven by optimization of inventory management As of the end of the reporting period, inventories were down 5% at EUR 400 million (March 31, 2012: EUR 422 million). Adjusted for currency effects, inventories fell by 7% year-on-year. Effective measures to optimize inventory management were the key drivers of this development. Increase in trade receivables driven by expansion of the concession model Trade receivables rose by 5% year-on-year to EUR 250 million (March 31, 2012: EUR 238 million). Adjusted for currency effects, this marks an increase of 4%. Key driver for this development were higher trade receivables due to the expansion of the concession model. Other assets increased by 24% year-on-year to EUR 201 million (March 31, 2012: EUR 161 million). This increase is largely attributable to the rise in deferred tax assets as well as increased advance payments to suppliers and tax authorities. Cash and cash equivalents amounted to EUR 57 million as of the end of the reporting period (March 31, 2012: EUR 211 million). The fall is mainly attributable to the repayment of the syndicated loan.

26 Net Assets and Financial Position 26 Under equity and liabilities, provisions and deferred tax liabilities were down 4% on the previous year's level at EUR 143 million (March 31, 2012: EUR 149 million EUR). This includes provisions for pensions and other personnel expenses of EUR 77 million (March 31, 2012: EUR 76 million). It also includes other provisions totaling EUR 47 million (March 31, 2012: EUR 53 million) and deferred tax liabilities of EUR 19 million (March 31, 2012: EUR 20 million). Trade payables were up 6% year-on-year at EUR 195 million (March 31, 2012: EUR 184 million). This corresponded to an increase of 6% also after adjustment for currency effects. As of the end of the reporting period, the total of current and non-current financial liabilities decreased by 50% to EUR 188 million (March 31, 2012: EUR 376 million). The decline in non-current financial liabilities of EUR 194 million is mainly due to the reduction in utilization associated with the syndicated financing concluded in March. In addition to the set tranche of the syndicated loan, financial liabilities include negative fair values of interest and currency hedges with a total amount of EUR 7 million (March 31, 2012: EUR 18 million).. Other liabilities increased by 26% year-on-year to EUR 159 million (March 31, 2012: EUR 127 million). The key driver of this development was the increase in income tax and value added tax liabilities and accrued liabilities for overtime and vacation entitlement. The item also increased because of higher accrued liabilities from lease obligations for the Group s own retail business as a consequence of the expansion. Trade net working capital as percentage of sales slightly below prior year level Trade net working capital is the HUGO BOSS Group's key performance indicator for measuring the efficient use of capital. The only three components involved in calculating this figure are the operating figures for inventories, trade receivables and trade payables. As against the previous year, trade net working capital decreased by 5% to EUR 454 million (March 31, 2012: EUR 476 million). The rise in trade receivables was offset by the decline in inventories and the rise in trade payables. The disproportionate rise in relation to sales is due, in particular, to effective measures to reduce inventories. At 20.0%, the twelve-month moving average of trade net working capital as a percentage of sales was slightly below the previous year level (2012: 20.2%).

27 Net Assets and Financial Position 27 Financial position 02/12 Free Cash flow 02/13 Net financial liabilities Jan.-March 2012 Jan.-March 2013 March 31, 2012 March 31, % - 12 % Statement of cash flows The statement of cash flows is presented in accordance with IAS 7. The cash and cash equivalents shown here are the same as the item of the same name in the consolidated balance sheet. Cash flow from operating activities up slightly year-on-year At EUR 36 million, the cash flow from operating activities was up on the previous year's level of EUR 22 million. The change in the collection cycle and the measures taken to reduce inventories resulted in a year-on-year decline in cash outflow from current net working capital to EUR 43 million (previous year: EUR 92 million). A key factor in this was the lower cash outflow generated by the change in trade payables as well as other liabilities of EUR 33 million (previous year: cash outflow of EUR 66 million). At EUR 31 million, cash outflow from investing activities was higher than in the previous year (previous year: EUR 15 million). Key factors for this development were investments in the extension of logistics capacity, further expansion and modernization of the Group s own retail business as well as the construction of an administrative building at the Metzingen location. The free cash flow, calculated from the cash provided by operating activitiesand cash used for investing activities, decreased by EUR 2 million in the first three months of fiscal year 2013 to EUR 5 million (previous year: EUR 7 million). The cash outflow from financing activities amounted to EUR 203 million in total in the first quarter of 2013 (previous year: cash inflow of EUR 4 million) and is essentially dominated by the repayment of the fixed tranche of the replaced syndicated loan of EUR 300 million. This is partly offset by the cash inflow from utilization of the follow-up financing less the associated transaction costs. The cash inflow in the same period of the previous year was the result of local, short-term refinancing transactions. Cash and cash equivalents amounted to EUR 57 million as of the end of the reporting period (March 31, 2012: EUR 211 million). The decrease was mainly influenced by the repayment of the fixed tranche of the syndicated loan of EUR 300 million.

28 Net Assets and Financial Position 28 Net financial liabilities Net financial liabilities are the total of all financial liabilities due to banks less cash and cash equivalents. Improvement in net financial liabilities At EUR 181 million, financial liabilities due to banks were significantly below the previous year s level (March 31, 2012: EUR 352 million). This development was largely due to the repayment of the fixed tranche of the syndicated loan of EUR 300 million. However, this effect was offset by utilization of EUR 110 million of the follow-up financing concluded in March The cash and cash equivalents decreased from EUR 211 million in the previous year to EUR 57 million as of March 31, The decline is mainly due to the repayment of the syndicated loan that has been replaced. Net financial liabilities therefore improved by a further EUR 17 million from EUR 141 million to EUR 124 million as of March 31, Capital expenditure Significant increase in capital expenditure in the first quarter of 2013 In the first quarter of fiscal year 2013, the total capital expenditure by the HUGO BOSS Group on property, plant and equipment and intangible assets amounted to EUR 31 million, a significant increase on the previous year's level (previous year: EUR 15 million). In the first three months of fiscal year 2013, the global expansion and modernization of the Group s own retail business accounted for 38% of total investments (previous year: 63%). Investments in new stores amounted to EUR 7 million (previous year: EUR 3 million). In Europe, a store was opened at Heathrow Airport in London and a flagship store was opened on Leidestraat in Amsterdam among other places. In the Americas, HUGO BOSS opened an attractive location in San Diego. In addition, a further EUR 5 million were invested in the renovation and modernization of existing retail locations in the U.S. in particular (previous year: EUR 6 million). A large part of the total is attributable to the renovation of retail stores at Columbus Circle in New York, in the Dadeland Mall in Miami and in the Mall of Millenia in Orlando. Administrative investments amounted to EUR 5 million and therefore increased by EUR 2 million as against the previous year (previous year: EUR 3 million). This figure includes capital expenditure of EUR 2 million for an additional administrative building. Investments in IT infrastructure and other administrative investments contributed EUR 3 million to the investment volume. Investments in the production, logistics and distribution structure and for research and development amounted to EUR 14 million (previous year: EUR 3 million). Of particular note are the investments in setting up a new distribution center in Filderstadt totaling EUR 11 million.

29 Report on Risks and Opportunities 29 Report on Risks and Opportunities HUGO BOSS has a comprehensive risk management system enabling Management to identify and analyse opportunities and risks as well as to take appropriate measures at an early stage. The risk situation has not changed materially compared to the reporting year A detailed overview of risks and opportunities can be found in the annual report All statements included therein regarding risks and opportunities continue to be valid.

30 Subsequent Events and Outlook 30 Subsequent Events and Outlook HUGO BOSS is forecasting continuing profitable growth in The implementation of the medium-term growth strategy will help the Group increase sales and earnings to new record levels. Sales and operating profit (EBITDA before special items) are each expected to grow at a high single-digit rate. Subsequent Events In the middle of April the new founded subsidiary in Singapore, H.BOSS SOUTH EAST ASIA PTE. LTD., signed a contract to take over four stores from the most important franchise partner in Singapore. Subject of this contract is the takeover of four own retail stores in Singapore effective of August 1, The purchase price for the acquisition of the location and the assets involved amounts to approx. EUR 4.7 million (SGD 7.5 million). The takeover of the locations, run by the local franchsie partner, is an important expansion of the Group s own retail network in the Asian market. Between the end of the first quarter of 2013 and the publication of this report, there were no further material macroeconomic, socio-political, sector-related or company-specific changes that the management expects to have a significant influence on the results of operations, net assets, and financial position of the Group. Outlook The following report sets out the HUGO BOSS Management s forecasts for the future business performance and describes the anticipated development of the main economic and sector conditions. It reflects the current knowledge of the management at the time the report was prepared, while also aware that the actual development may differ considerably from these forecasts, either positively or negatively, due to the occurrence of risks and opportunities as described in the report on risks and opportunities in the 2012 annual report. Other than the statutory publication requirements, the HUGO BOSS Group does not assume any obligation to update the statements contained in this report. As an international fashion company, the performance of HUGO BOSS is influenced by global economic conditions and industry-specific developments. It is therefore very important for the Group to identify macroeconomic and industry-specific trends at an early stage so that it can react to them in good time with suitable measures. Moderate growth in global economy in 2013 The forecasts for global economic growth in 2013 continue to be subject to uncertainty. The extent to which the recurring setbacks in the fight against the euro debt crisis can be stemmed and a lasting solution can be found for the budget problems in the United States will be of great significance to the development of the global economy. Opportunities for the economy are primarily arising from the monetary and fiscal policy stimulus measures planned and in some cases already implemented in many emerging economies. Overall, experts are anticipating moderate global economic growth in 2013 with an increase roughly at the level of the previous year. Economic environment in the euro zone expected to remain difficult The economic prospects for 2013 have improved slightly as against the previous year in Europe, though a downturn in economic performance is still anticipated for 2013 as a whole. Among other things, this is due to the political instability in Italy and questions concerning the future of Cyprus in the euro zone. High unemployment and restrictive government financial policy will continue to weigh on private consumer spending in many places. Over the year, the recovery of the global economy and the associated rise in international demand are expected

31 Subsequent Events and Outlook 31 to support a return to positive growth rates. Germany is expected to grow slightly in 2013 and therefore perform better compared to the region as a whole. This development should be aided by its low unemployment, robust private consumption, stable domestic demand and exports. Continued moderate growth of American economy If a lasting solution can be found to reduce its high public debt, conditions for growth in the United States are likely to remain positive in A significant upturn in private consumer spending and increased corporate investments should contribute to this. Overall, economic growth of almost 2% is expected in the U.S. After a mixed performance in the past year, economists are forecasting a substantial recovery in growth rates in Latin America in Among other things, this trend will likely be supported by an upturn in the export sector. Chile, Colombia and Peru are expected to contribute significantly to growth in the region, and the Brazilian economy should also pick up given the considerable monetary policy stimuli. Continuing high rate of growth in Asia The Asian economy is likely to see slightly stronger growth in 2013 than in the previous year. Growth is expected to reach almost 7% and benefit from an improved export environment and stable domestic demand. Experts are predicting economic growth of just over 8% in China in 2013, representing a slight year-on-year acceleration. Consumer spending should benefit from wage increases and an improvement on the labor market in the short term. Further growth stimulus will emerge from a robust housing market and a gradual upturn in the export climate. The government s aggressive fiscal and monetary policies should allow a moderate upswing in Japan. Meanwhile, growth on the Australian economy is expected to slow slightly due to the difficult situation in the real estate sector and restrained private consumption. Continued sector growth expected The growth trend in the premium and luxury goods sector is expected to continue in According to industry experts, the currency-neutral growth rate should be in the mid single-digit range and is thus widely expected to outperform the economy as a whole. All regions are expected to contribute to sector growth in 2013, and this will be aided in particular by rising demand in the emerging economies. This demand will probably boost sales performance in Europe and the Americas in the form of tourism. Growth in Western Europe and particularly in Southern Europe will most probably still be affected by muted consumer confidence due to the debt crisis. However, this is likely to be offset by robust growth in Eastern Europe and the Middle East in particular. Demand in the Americas is still considered stable as consumer confidence has increased again. The Central and South American markets will make an above average contribution to the region's moderate growth prospects. Despite the slowdown in growth observed in the past year, the highest growth rates for the sector are forecasted in Asia. In China, the sector environment is expected to recover again over the course of 2013 following the marked downturn in The extent of this recovery will depend to a large extent on the relevant consumer segment's confidence in the future economic and political development of the country.

32 Subsequent Events and Outlook 32 Sales to increase at a high single-digit rate on a currency-adjusted basis HUGO BOSS expects to increase its currency-neutral sales in the high single-digit range in The Group anticipates that this growth will exceed the expansion rates for the global economy and the luxury goods sector. OUTLOOK 2013 SALES GROWTH (CURRENCY-NEUTRAL) GROWTH IN EBITDA BEFORE SPECIAL ITEMS High single-digit High single-digit CAPITAL EXPENDITURE Increase on a comparable basis OWN RETAIL NETWORK Around 50 net organic openings Growth anticipated in all regions HUGO BOSS is assuming that all regions will contribute to the forecasted sales increase for the Group as a whole in Growth is expected in all major markets in Europe. Strong increases are predicted in Eastern Europe in particular. In the comparatively much smaller markets of Southern Europe, the effects of the debt crisis and the difficult consumer environment could lead to weaker growth rates. In the Americas, a continued positive development is anticipated, still driven primarily by the strength of the U.S. market. In Asia, the Group is planning to generate stronger currency-neutral growth as against the previous year. This should be supported by a gradual improvement in growth rates on the key Chinese market. Sales in the royalties segment are also expected to develop positively. Group s own retail business to drive sales growth The own retail business will be the main sales driver for the Group as a whole in Its retail sales are expected to increase at a double-digit rate, mainly as a result of strong growth in directly operated stores and online. In addition to the positive effects of the expansion of the Group s own store network, comp store sales are also forecasted to rise. The Group is benefiting here from the further professionalization of its retail activities and the strong appeal of its brands. The takeover of HUGO BOSS shop-in-shops previously managed by wholesale partners in Germany and Spain will make a moderate contribution to the sales increase in own retail. For the wholesale business, a roughly stable sales development is forecasted on a currency-neutral basis. This projection is based on the development of incoming orders, feedback from trading partners on the new collections and expectations regarding the development of the replenishment business. Continued selling space expansion in own retail The HUGO BOSS Group will continue to expand its own retail activities and increase the number of new stores by around 50 in net terms in Based on an analysis of its global market penetration, the Group believes that there are opportunities to profitably increase its selling space in all regions. In 2013, HUGO BOSS plans in particular to tap the Russian market with its own retail business. In addition to organic new store openings, the Group also aims to take over around 50 HUGO BOSS shop-in-shops previously managed by wholesale partners in Germany and Spain. Operating profit projected to increase at a high single-digit range HUGO BOSS is planning to increase its operating profit (EBITDA before special items) at a high single-digit range in The main factors driving profit growth will be the expansion and improved management of the Group's own retail business. Given the rising share of this distribution channel, the gross profit margin is expected to increase as against the previous year. Operating expenses will grow, mainly due to the further expansion of the Group s own retail activities and higher marketing expenses. The increase in other operating expenses should be below sales growth. As a result of the improved EBITDA before special items, net income is also expected to rise.

33 Subsequent Events and Outlook 33 Strict management of trade net working capital Strict management of trade net working capital is a high priority in order to generate improvements in operating cash flow. Particular attention is paid to reducing the cash conversion cycle. Potential for improvement is seen in reducing days inventories outstanding in particular. The Group is therefore aiming to reduce days inventories outstanding, particularly in its own retail business, by the more frequent renewal of the product range as a result of the changed collection cycle and improved planning of merchandise flows. Overall, the Group expects trade net working capital to grow more slowly than sales in Investing activities to focus on own retail business Capital expenditure in 2013 will focus on expanding the Group s own retail activities and renovating existing stores and shops. On a comparable basis, i.e. without taking into account the expenses incurred in the past year in connection with the ongoing construction of a new distribution center for flat-packed goods, capital expenditure will therefore be up on the previous year s level in Continuing strong cash flow development The Group anticipates that cash flow will develop strongly in 2013, primarily due to the planned increase in earnings, strict management of trade net working capital and disciplined investment activity. In addition to the dividend payment, excess funds are to be used to further reduce debt. Accordingly, the Company expects net financial liabilities at the end of the year to be lower than in the previous year. Higher dividend proposed HUGO BOSS pursues a profit-based dividend policy under which the shareholders participate appropriately in the Group s profit development. Between 60% and 80% of net income is to be distributed to the shareholders on a regular basis. On the basis of the significant increase in profit in fiscal year 2012 and the positive expectations for 2013, the Managing Board and Supervisory Board intend to propose to the Annual Shareholders Meeting on May 16, 2013 a dividend of EUR 3.12 per ordinary share (2011: EUR 2.88 per ordinary share and EUR 2.89 per preferred share) for fiscal year The proposal corresponds to a payout ratio of 70% of net income attributable to the equity holders of the parent company in 2012 (2011: 70%). Provided the shareholders approve the proposal, the dividend will be paid out on the day following the Annual Shareholders Meeting, i.e. on May 17, Based on the number of shares outstanding at the end of the year, the amount distributed will total EUR 216 million (2011: EUR 199 million). Ambitious medium-term growth plans The Group is planning to generate significant sales and earnings increases in the medium term. The Group strategy is based on organic growth of the existing brand portfolio. Sales are expected to reach EUR 3 billion in Operating profit is set to rise to EUR 750 million in the same year. The Group expects to make further progress towards achieving these goals in Sales and operating profit are forecasted to rise further. A continued recessionary economic environment, particularly in major European core markets, cost inflation in sourcing processes and a loss of appeal of the Group s brands could jeopardize the achievement of these goals. The Group has taken precautions to limit the probability of these or other risks occurring and their impact if they do. Details can be found in the risk report in the 2012 annual report.

34 Summary on Earnings, Net Assets and Financial Position 34 Summary on Earnings, Net Assets and Financial Position In summary, earnings, net assets and the financial position indicate that HUGO BOSS Group continued to be in a sound financial position at the time that this report for the first three months of fiscal year 2013 was prepared. Metzingen, April 17, 2013 HUGO BOSS AG The Managing Board Claus-Dietrich Lahrs Christoph Auhagen Mark Langer

35 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 3

36 Consolidated Income Statement 36 Consolidated Income Statement of the HUGO BOSS Group for the period from January 1 to March 31, Net sales Cost of sales (213.9) (224.2) Direct selling expenses (12.5) (12.5) Gross Profit in % of Sales Selling and distribution expenses (199.0) (189.2) Administration costs and other operating income/expenses (56.7) (51.5) Operating result (EBIT) in % of Sales Net interest income/expense (3.8) (3.3) Other financial items (1.2) (0.9) Financial result (5.0) (4.2) Earnings before taxes Income taxes (24.4) (30.0) Net income Attributable to: Equity holders of the parent company Non-controlling interests Net income Earnings per share (EUR) 2 Ordinary share Preferred share Certain amounts shown here do not correspond to previous year figures and reflect adjustments made (as detailed in the Condensed Notes to the Consolidated Interim Financial Statements, Note 2 // Accounting policies). 2 Basic and diluted earnings per share. 3 Preferred shares were converted into ordinary shares on 15 June, 2012 after stock market trading.

37 Consolidated Statement of Comprehensive Income 37 Consolidated Statement of Comprehensive Income of the HUGO BOSS Group for the period from January 1 to March 31, Net income Items that will not be reclassified to profit or loss Remeasurement of defined benefit plans Income taxes Items that may be reclassified subsequently to profit or loss Differences arising from currency differences 8.9 (1.8) Gains/losses from market valuation of hedges Income taxes (1.2) (0.5) Other comprehensive income, net of tax 12.4 (0.5) Total comprehensive income Attributable to: Equity holders of the parent Non-controlling interests Total comprehensive income Certain amounts shown here do not correspond to previous year figures and reflect adjustments made (as detailed in the Condensed Notes to the Consolidated Interim Financial Statements, Note 2 // Accounting policies).

38 Consolidated Balance Sheet 38 Consolidated Balance Sheet of the HUGO BOSS Group as of MArch 31, 2013 Assets March 31, 2013 March 31, Dec. 31, January 1, Intangible Assets Property, plant and equipment Deferred tax assets Non-current financial assets Non-current tax receivables Other non-current assets Non-current assets Inventories Trade receivables Current tax receivables Current financial assets Other current assets Cash and cash equivalents Current assets Total assets 1, , , ,425.8 Equity and Liabilities March 31, 2013 March 31, Dec. 31, January 1, Subscribed capital Own shares (42.3) (42.3) (42.3) (42.3) Capital reserve Retained earnings Accumulated other comprehensive income 2.9 (20.7) (8.7) (20.9) Profit attributable to equity holders of the parent company Equity attributable to equity holders of the parent company Non-controlling interests Group Equity Non-current provisions Non-current financial liabilities Deferred tax liabilities Other non-current liabilities Non-current liabilities Current provisions Current financial liabilities Income tax payables Trade payables Other current liabilities Current liabilities Total equity and liabilities 1, , , , Certain amounts shown here do not correspond to previous year figures and reflect adjustments made (as detailed in the Condensed Notes to the Consolidated Interim Financial Statements, Note 2 // Accounting policies).

39 Statement of Changes in Consolidated Equity 39 Statement of Changes in Consolidated Equity of the HUGO BOSS Group for the period from January 1 to March 31, 2013 Retained earnings Accumulated other comprehensive income Subscribed Capital Own Shares Capital Reserve Legal Reserve Other Reserves Differences arising form currency translation Market valuation of hedges Equity attributable to equity holders of the parent company Non-controlling interests January 1, 2012 (as reported) 70.4 (42.3) (9.5) (11.4) Change in accounting policies January 1, 2012 (adjusted) (42.3) (9.5) (11.4) Net income Other income (1.1) (0.6) (0.5) Changes in scope of consolidation Allocated to retained earnings March 31, (42.3) (10.6) (10.1) Group Equity January 1, 2013 (as reported) 70.4 (42.3) (5.2) (3.5) Change in accounting policies January 1, 2013 (adjusted) (42.3) (5.2) (3.5) Net income Other income Changes in scope of consolidation Allocated to retained earnings March 31, (42.3) Certain amounts shown here do not correspond to previous year figures and reflect adjustments made (as detailed in the Condensed Notes to the Consolidated Interim Financial Statements, Note 2 // Accounting policies).

40 Consolidated Statement of Cash Flows 40 Consolidated Statement of Cash Flows Of the HUGO BOSS Group for the period from January 1 to March 31, Net income Depreciation/amortization Unrealized net foreign exchange gain/loss Other non-cash transactions 0.1 (3.6) Income tax expense/refund Interest income and expenses Change in inventories Change in receivables and other assets (42.6) (58.3) Change in trade payables and other liabilities (33.4) (65.9) Result from disposal of non-current assets Change in provisions for pensions Change in other provisions (22.0) (1.8) Income taxes paid (28.6) (28.1) Cash flow from operations Interest paid (4.4) (4.6) Interest received Cash flow from operating activities Investments in PPE 2 (30.1) (12.4) Investments in intangible assets (1.3) (2.7) Payment for changes in scope of consolidation (0.3) 0.0 Cash receipts from sales of PPE 2 and intangible assets (0.1) 0.2 Cash flow from investing activities (31.0) (14.9) Change in current financial liabilities (310.7) 3.5 Cash receipts of non-current financial liabilities Repayment of non-current financial liabilities (0.5) 0.4 Cash flow from financing activities (203.2) 3.9 Exchange rate-related changes in cash and cash equivalents 0.8 (0.5) Change in cash and cash equivalents (197.3) 10.6 Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Certain amounts shown here do not correspond to previous year figures and reflect adjustments made (as detailed in the Condensed Notes to the Consolidated Interim Financial Statements, Note 2 // Accounting policies). 2 Property, plant and equipment.

41 Condensed Notes to the Consolidated Interim Financial Statements 41 Condensed Notes to the Consolidated Interim Financial Statements 1 // GENERAL INFORMATION The interim financial report of HUGO BOSS AG as of March 31, 2013, was prepared pursuant to Section 37x of the Securities Trading Act in accordance with the International Financial Reporting Standards (IFRS) and their interpretations that were valid as of the balance sheet date. The regulations of IAS 34 on Interim Financial Reporting were applied in particular. The consolidated interim management report and the consolidated interim financial statements were not audited in line with Article 317 of the German Commercial Code nor were they subjected to a review on the part of a person authorized to conduct an audit. The condensed consolidated interim financial statements and consolidated interim management report of HUGO BOSS AG, Metzingen, were authorized for issue to the Supervisory Board by the Managing Board on April 17, Before publication the condensed consolidated interim financial statement and the consolidated interim management report was discussed with the supervisory board s audit committee. 2 // accounting policies All interim reports of companies included in the consolidated interim report were prepared with uniform accounting policies. A detailed description of the applied accounting and consolidation methods can be found in the notes to the 2012 consolidated financial statements. The adoption of revised or new standards on January 1, 2013 resulted in the following changes in accounting policies. Accounting Policies adopted for the first time IAS 19 Employee Benefits (revised 2011, IAS 19R) As of January 1, 2013, the HUGO BOSS Company adopted IAS 19, Employee Benefits (revised 2011, IAS 19R), which was published by the IASB in June The standard is effective for fiscal years beginning on or after January 1, The standard was adopted retroactively. The amendment was in endorsed European law by the EU in June The following changes to IAS 19R affect the net assets, financial position and results of operations of the HUGO BOSS Company: IAS 19R replaces interest expense and the expected return on plan assets with a net interest income amount. That is derived by multiplying the net pension obligation by the discounting rate on which the measurement of the gross pension obligation (defined benefit obligation) is based. The net defined benefit liability (asset) comprises the interest income on plan assets and the interest expense on the DBO. The difference between the interest income on plan assets and the return on plan assets is reported in other comprehensive income in the consolidated statement of comprehensive income. IAS19R also more precisely defines the concept of risk sharing between the employees and the employer. This more precise definition affects the calculation of pension obligations under plans with future employee contributions effectively rising over their remaining working life. In particular, this concerns pension plans that feature backloading in later years. The previous IAS 19 provided for the calculation of a total obligation including future employee-funded benefit increases. In accordance with IAS 19R, the allocation of vesting benefits is calculated on the basis of the net obligation exclusively of future employee-funded benefit increases. This resulted in a reduction in the DBO and a different allocation of service cost over working life.

42 Condensed Notes to the Consolidated Interim Financial Statements 42 A lesser effect results from the recognition of the administration costs of providing benefits not related to the administration of plan assets. The recognition of non-vested past service cost as it arises rather than recognizing it over the period until vesting does not affect the HUGO BOSS Company. Similarly, the abolition of the corridor method does not require any adjustment at HUGO BOSS. The new regulation on the recognition of bonus payments for German early partial retirement plans also means a change in the recognition and classification of expense. In the past, provisions for bonus payments were recognized in full immediately on conclusion of an early partial retirement agreement and classified as a termination benefit. The regulations of IAS 19R clarify that these bonus payments no longer constitute a settlement and instead employees earns their claim to them through their work. Thus, the provision must accrue over the vesting period. This resulted in a reduction in the provision previously recognized in full for partial early retirement bonuses and an accrual over the active phase of the partial early retirement arrangement. The retroactive adoption of IAS 19R resulted in the following effects in the opening balance as of January 1, 2012 and the prior-year period: December 31, 2012 January 1, 2012 Before adjustment Adjustment After adjustment Before adjustment Adjustment After adjustment Assets 1,584.5 (0.3) 1, ,425.9 (0.2) 1,425.8 Thereof deferred tax assets 67.0 (0.3) (0.2) 55.9 Non-current liabilities (2.1) (1.5) Thereof non-current provisions 55.2 (2.1) (1.5) 39.5 Group equity Thereof retained earnings Thereof net income Thereof total comprehensive income The retroactive adoption of IAS 19R had only an insignificant effect on the consolidated income statement and the statement of comprehensive income in the first quarter of 2013 as well in the comparative quarter of Therefore the effect on the consolidated balance sheet as of March 31, 2013 was insignificant in comparison to the consolidated balance sheet as of December 31, 2012.

43 Condensed Notes to the Consolidated Interim Financial Statements 43 New and amended ACCOUNTING POLICIES Changes of IAS 1 "Presentation of finacial statements" require that other comprehensive income must be broken down so that other items that will later be reclassified to the income statement are reported seperately from items that will remain in other comprehensive income. The adoption of new accounting regulations IAS 1, IAS 32, IAS 34 and the first time adoption of IFRS 13 did not materially affect the Group s results of operations, net assets or net financial position. CHANGE IN ACCOUNTING METHOD/CHANGE IN PRESENTATION Changes in accounting method and changes in presentation described in the consolidated financial statements 2012 were also taken into account as of March 31, The prior-year figures were adjusted retroactively in accordance with the regulations of IAS 8. 3 // CURRENCY TRANSLATION The exchange rates of currencies used in the interim statements changed relation to the euro in the reporting period as follows: Currency Average Rate Closing Rate Country 1 EUR = Jan. March 2013 Jan. March 2012 Jan. Dec March 31, 2013 March 31, 2012 Dec. 31, 2012 Australia AUD Brazil BRL Canada CAD China CNY Denmark DKK Great Britain GBP Hong Kong HKD Japan JPY Macau MOP Mexico MXN Norway NOK Sweden SEK Switzerland CHF U.S.A. USD // ECONOMIC AND SEASONAL INFLUENCES As a global company, the HUGO BOSS Group is exposed to various economic developments. Industry-specific seasonal fluctuations are typical for HUGO BOSS. However, HUGO BOSS operations have changed fundamentally in past years. While the business used to be dominated by two preorder seasons (spring/summer and fall/ winter) with orders being placed accordingly early, it has now become increasingly complex. Preorder business now consists of four seasonal sales every year. In addition, the significance of seasonal influences is decreasing as a result of the global expansion of the Group s own retail business. Furthermore, HUGO BOSS also makes every effort to increase efficiency through greater use of replenishment business to service less fashion-oriented items. The number of monthly theme-oriented deliveries is also climbing continuously. These effects are steadily reducing the seasonality over the course of HUGO BOSS business.

44 Condensed Notes to the Consolidated Interim Financial Statements 44 5 // Scope of CONSOLIDATION The number of companies included in consolidation rose from 54 in the consolidated financial statements as of December 31, 2012 to 55 in the January 1 to March 31, 2013 reporting period. The new company founded in fiscal year 2012, HUGO BOSS RUS LLC, Moscow, Russia, was not included in the consolidated financial statements as of December 31, 2012 owing to immateriality. The wholly owned subsidiary was included in consolidation for the first time in the first quarter of // MINORITY INTERESTS The consolidated financial statements include companies in which HUGO BOSS AG holds less than 100% of the equity. In accordance with IAS 27, these minority interests are reported in equity separately from the equity held by the shareholders of HUGO BOSS AG in the consolidated balance sheet. 7 // NOTES TO THE CONSOLIDATED INCOME STATEMENT Cost of Sales and Direct selling expenses Jan. March 2013 Jan. March 2012 Cost of purchase Cost of conversion Direct selling expenses TOTAL Direct selling expenses primarily include sales commissions, freight and duties charges as well as credit card fees. Selling and Distribution Expenses Jan. March 2013 Jan. March 2012 Expenses for Group s own retail business, indirect sales and marketing organization Marketing spendings Logistics expenses Bad Debts/Losses (0.8) 0.8 TOTAL Alongside personnel expenses, rental expenses are the largest item in the expenses for the Group s own retail business, indirect sales and marketing organization. In addition to staff and rental expenses for wholesale distribution, the expenses for the Group s own retail business, indirect sales and marketing organization also include other expenses for retail services and regional sales management.

45 Condensed Notes to the Consolidated Interim Financial Statements 45 Administrative costs and other operating expenses/income Jan. March 2013 Jan. March 2012 General administration costs Research and development costs Secial items (0.1) 0.7 TOTAL General administrative costs consist largely of rent for premises, maintenance costs, IT operating costs, legal and consulting fees, as well as the personnel expenses of the respective functional areas. In the HUGO BOSS Group, research and development expenses are incurred primarily for the creation of fashion collections. Personnel expenses Jan. March 2013 Jan. March 2012 Wages and salaries Social security Expenses and income for retirement benefits and aid TOTAL Employees March 31, 2013 Dec. 31, 2012 Industrial employees 4,269 4,303 Commercial and administrative employees 7,546 7,549 TOTAL 11,815 11,852 Depreciation Jan. March 2013 Jan. March 2012 Non-current Assets Tangible Assets Intangible Assets TOTAL Cost of Materials The cost of materials in the first quarter of 2013 amounted to EUR 177 million (2012: EUR 185 million).

46 Condensed Notes to the Consolidated Interim Financial Statements 46 8 // Earnings per share Jan. March 2013 Jan. March 2012 Net income attributable to equity holders of the parent company Average number of shares outstanding 1 Ordinary shares 69,016,167 35,331,445 Preferred shares 2 33,684,722 EPS ordinary shares in EUR EPS preferred shares in EUR 2, Regardless own shares. 2 Preferred sahres were converted in ordinary shares on June 15, 2012 after stock market trading. 3 Basic and diluted earnings per share. Pursuant to IAS 33, earnings per share (EPS) are calculated by dividing the net income or loss for the period by the weighted average number of shares outstanding during the period. There were no shares outstanding that could have diluted earnings per share either as of March 31, 2013 or as of March 31, // Treasury shares In the first three months of fiscal year 2013, HUGO BOSS AG did not purchase any treasury shares. HUGO BOSS AG holds a total of 1,383,833 ordinary shares. This corresponds to a share of 1.97% or EUR 1,383,833 of the share capital. The total of treasury shares include former preferred shares, which were transferred to ordinary shares on June 15, The transfer of all preferred shares to ordinary shares was approved at HUGO BOSS annual shareholders meeting on May 3, // Provisions For pensions and similar obligations Provisions for Pensions March 31, 2013 Dec. 31, 2012 Provisions for pensions Provisions for similar obligations TOTAL The acturial calculation used to determine the present value of the defined benefit obligations also included relevant influeced factors, the planned service cost and the expected return on plan assets. Parameters like discount rate, rate of compensation increase, expected salary increase and the expected rate of return of plan assets remain equal in the first three month of fiscal year 2013 in comparison to fiscal year 2012.

47 Condensed Notes to the Consolidated Interim Financial Statements 47 pensions expenses Jan.- March 2013 Jan.- March 2012 Current service cost for the period Net interest costs Thereof interest expense from DBO Thereof net interests from asset ceiling Thereof interest income from plan assets (0.6) (0.7) Pensions expenses for the period Pensions expenses consist of current service cost of the period and net interest costs. Net interest costs comprise of interest expenses, net interests from asset ceiling and interest income from plan assets. 11 // CONTINGENT LIABILITIES AND CONTINGENT ASSETS There were no material changes in contingent liabilities as against December 31, There were no contingent assets as of March 31, // CASH FLOW STATEMENT The HUGO BOSS Group s cash flow statement shows the changes that occurred in cash and cash equivalents during the year under review on the basis of cash transactions. Pursuant to IAS 7, cash flows are reported separately according to source and application in operating activities, investing activities, and financing activities. Cash flows are derived indirectly based on the Group s net income. Changes in the balance sheet items presented in the cash flow statement cannot be derived directly from the balance sheet due to adjustments for currency effects.

48 Condensed Notes to the Consolidated Interim Financial Statements // Segment Reporting Jan. March 2013 Europe 1 Americas Asia/Pacific Royalties 2 operating segments Total Jan. March 2012 Jan. March 2013 Jan. March 2012 Jan. March 2013 Jan. March 2012 Jan. March 2013 Jan. March 2012 Jan. March 2013 Jan. March 2012 Net sales Segment profit in % of net sales 36.5% 38.6% 25.2% 28.6% 34.9% 37.9% 85.1% 95.6% 34.9% 37.6% Segment assets Capital expenditures Impairments Thereof tangible assets Thereof intangible assets Depreciation/Amortization (6.4) (5.6) (3.8) (3.0) (4.1) (3.1) (14.3) (11.7) SAR expenses and hedging Including Middle East and Africa. 2 Previous year figures were adjusted.

49 Condensed Notes to the Consolidated Interim Financial Statements 49 Reconciliation Net Sales Jan. March 2013 Jan. March 2012 Net sales operating segments Corporate units Consolidation TOTAL Operating income Jan. March 2013 Jan. March 2012 Segment profit operating segments Depreciation/Amortization operating segments (14.3) (11.7) Impairments operating segments Special items operating segments Operating income (EBIT) operating segments Corporate units (81.2) (87.1) Consolidation 0.0 (0.3) Operating income (EBIT) HUGO BOSS Group Net interest income/expense (3.8) (3.3) Other financial items (1.2) (0.9) Earnings before taxes HUGO BOSS Group Capital Expenditures March 31, 2013 Dec. 31, 2012 Capital expenditures operating segments Corporate units Consolidation TOTAL Depreciation/amortization Jan. March 2013 Jan. March 2012 Depreciation/Amortization operating segments (14.3) (11.7) Corporate units (7.0) (6.6) Consolidation TOTAL (21.3) (18.3)

50 Condensed Notes to the Consolidated Interim Financial Statements 50 Impairment Jan. March 2013 Jan. March 2012 Impairment operating segments Corporate units Consolidation TOTAL SAR-expenses and Hedging Jan. March 2013 Jan. March 2012 SAR expenses and hedging operating segments Corporate units Consolidation TOTAL Segment Assets March 31, 2013 March 31, 2012 Dec. 31, 2012 Segment assets operating segments Corporate units Consolidation Current tax receivables Current financial assets Other current assets Cash and cash equivalents Current assets HUGO BOSS Group Non current assets Total assets HUGO BOSS Group 1, , ,584.5

51 Condensed Notes to the Consolidated Interim Financial Statements 51 Geographic information Third party sales Jan.- March 2013 Jan.- March 2012 Non-currents assets March 31, 2013 March 31, 2012 Germany Other European markets U.S.A Other North- and Latinamerica markets China Other Asian Markets Royalties TOTAL HUGO BOSS Group // EVENTS AFTER THE END OF THE REPORTING PERIOD In the middle of April the new founded subsidiary in Singapore, H.BOSS SOUTH EAST ASIA PTE. LTD., signed a contract to take over four stores from the most important francise partner in Singapore. Subject of this contract is the takeover of four own retail stores in Singapore effective of August 1, The purchase price for the acquisition of the location and the assets involved amounts to approx. EUR 4.7 million (SGD 7.5 million). The takeover of the locations, run by the local franchsie partner, is an important expansion of the Group s own retail network in the Asian market. 15 // Information Concerning The Majority Shareholder In accordance with Section 21 of the Securities Trading Act (WpHG), shareholders are required to report the level of their shareholdings if they exceed or fall below certain thresholds. The thresholds for reporting are 3 %, 5 %, 10 %, 15 %, 20 %, 25 %, 30 %, 50 % and 75 %. On January 24, 2013 HUGO BOSS was notified of the following voting rights announcement pursuant to section 25a WpHG (German Securities Trading Act) of Mediobanca Banca di Credito Finanziario S.p.A., Milan, Italy: We hereby notify you pursuant to section 25a para. 1 WpHG that since 21 January 2013 we no longer hold any financial or other instruments pursuant to section 25a para. 1 WpHG which are structured in a manner that enables us to acquire voting rights in HUGO BOSS AG. Therefore, on 21 January 2013 we have fallen below the thresholds of 30%, 25%, 20%, 15%, 10% and 5% pursuant to section 25a para. 1 WpHG. Further shares of voting rights that need to be notified in accordance with sections 21, 22, 25 WpHG are neither held by nor attributable to us. The aggregate number of shares of voting rights that need to be notified in accordance with sections 21, 22, 25, 25a WpHG corresponds to the number disclosed above.

52 Condensed Notes to the Consolidated Interim Financial Statements 52 The Company published these notifications verbatim on its Investor Relations website. Metzingen, April 17, 2013 HUGO BOSS AG The Managing Board Claus-Dietrich Lahrs Christoph Auhagen Mark Langer

53 FURTHER INFORMATION 4

54 Forward-Looking Statements 54 Forward-Looking Statements 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 identify forward-looking statements. Such statements are subject to risks and uncertainties. If any of these or other risks or uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made. Financial calendar 2013 May 16 Annual Shareholders' Meeting July 31 Publication of the First Half Year Report 2013 October 31 Publication of the Nine Months Report 2013 Contacts Investor Relations Phone +49 (0) [email protected] Dennis Weber Head of Investor Relations Phone +49 (0) Fax +49 (0) DR. HJÖRDIS KETTENBACH Head of Corporate Communication Phone +49 (0) Fax +49 (0) Request for annual reports Service

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